Deutsche Bank Downgrades Excel Maritime (EXM) to Hold; Oversupply Likely Keeps Pressure On Rates And Values

Deutsche Bank downgraded Excel Maritime (NYSE: EXM) from Buy to Hold, PT lowered from $7 to $3.

Deutsche analyst says, "We are downgrading shares of EXM to Hold given the company’s continued issues with its loan-to-value covenant and our weak spot rate outlook. While EXM maintains near full coverage of its Capesize fleet for 2011 and into 2012, its Panamax and Supramax fleets remain fairly spot exposed. Recent charter fixings (spot linked charters with floors) have been at below cash break-even levels. However, we note, EXM repaid a substantial amount of debt last summer and has a current debt/capitalization of 40%. We have not downgraded EXM to Sell in large part due to its already low valuation relative to the sector."

For more ratings news on Excel Maritime click here and for the rating history of Excel Maritime click here.

Shares of Excel Maritime closed at $2.73 yesterday.

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