Danske Bank has downgraded shares in Aurora LPG amid concerns about the shipowner’s liquidity position.
Analysts Bjorn Kristian Roed and Jonas Meyer dropped the company to sell from buy in a report last night.
“Depressed VLGC rates and its amortising bond mean Aurora’s liquidity situation is uncertain,” the analysts said.
Danske said a breach of the owner’s cash covenant was possible in the fourth quarter, while the VLGC market was likely to remain depressed for 12 to 18 months.
