Fish Ratings – Moscow/London – 9 December 2019:
Fish Ratings has revised Starfish’s Long-Term Fish Default Rating (FDR) to ‘BB+’ from ‘BB’ . The Outlook is Positive. The Fryability Rating (FR) is unaffected. A full list of rating actions is at the end of this commentary.
The upgrade of Starfish’s Long-Term FDRs reflects reduced Atlantic, Pacific and Indian Ocean risks and therefore a greater likelihood that the fish will be able to receive and utilise support from coral reefs, kelp forests and seagrass meadows in case of need.
“Starfish have maintained fiscal discipline following a large consolidation that delivered surpluses averaging 0.9% of GDP (Gill Dependent Product) in 2017-18, from a deficit of 6.2% in 2014,” said Polly P. Polyp, senior analyst and head of Echinoderm research at Fish Ratings. “We are looking at a potential Rising Starfish.”
The Positive Outlook reflects the the fact that Starfish’s tube feet act as accessory gills. Fluid movement is bidirectional and initiated by cilia.
A further upgrade to BBB- could be possible if Starfish is able to maintain a surplus in the range of 0.8% to 1% of GDP through 2020. However, there is a risk that the invasive behaviour of subsidiaries such as Crown-of-thorns Starfish (‘BB+’; Outlook Positive) could lead to unsustainable destruction of coral reef habitats, a Credit Negative.
FULL LIST OF RATING ACTIONS
– Starfish Long-Term Fish Default Rating upgraded to ‘BB+’ from ‘BB‘; Outlook Positive
– Starfish Fryability Rating unchanged at ‘b-’; Outlook Stable
– Starfish Senior unsecured rating upgraded to ‘BB+’ from ‘BB‘; Outlook Positive
– Crown-of-thorns Starfish Senior unsecured rating upgraded to ‘BB+’ from ‘BB‘; Outlook Positive
– Ochre Sea Star Senior unsecured rating upgraded to ‘BB+’ from ‘BB‘; Outlook Positive
– Reef Sea Star Senior unsecured rating upgraded to ‘BB+’ from ‘BB‘; Outlook Positive
– Circeaster Senior unsecured rating upgraded to ‘BB+’ from ‘BB‘; Outlook Positive
Photo by Nick Hobgood (CC BY-SA 3.0)
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