NNA - Navios Maritime Acquisition: Dividends Still Risky Even After Massive Cut

• Navios Maritime Acquisition recently reduced their dividends by a massive 83%, thereby leaving their once very high yield at a now moderate yield of a bit under 6%.
• Sadly, the risks for further reductions persist, firstly due to their very lumpy free cash flow that makes it difficult to count upon any given level of shareholder returns.
• This already bad situation is further worsened by their very high leverage, which keeps their dividends risky and also gives them very little room to handle unforeseen events.
• To make matters even worse yet again, they are facing very large debt maturities in 2021 that threaten to worsen their already weak liquidity.
• Until such time as their 2021 Senior Notes are refinanced, I am downgrading my rating to bearish.

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