Wells Fargo Downgrades Crude Carriers (CRU) to Underperform; Potential Term-Out Of Credit Facility Could Hamper Dividend

Wells Fargo downgraded Crude Carriers (NYSE: CRU) from Outperform to Underperform. Valuation Range: $11-$12 from $16-$17.

Wells analyst says, "We believe CRU's current risks outweigh potential upside given the potential for restricted cash flows or dilution as CRU addresses credit facility maturation...Further, the soft rate environment and the broad based erosion of collateral value have continued to hamper the tanker lending environment. From our perspective, any extension would likely be followed by an eventual equity raise or term-out, keeping the current risk profile intact."

For more ratings news on Crude Carriers click here and for the rating history of Crude Carriers click here.

Shares of Crude Carriers closed at $14.20 yesterday.

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