Diana Shipping: Credit Perspective Establishes Attractiveness Of 9.0% Preferred Shares Yield

Even as leverage is high for Diana Shipping, a decent EBITDA interest coverage implies smooth debt servicing.

Low loan-to-value and ample covenant headroom provides financial flexibility for growth at a time when industry outlook is improving.

Recovery in day rates for dry bulk carriers has translated into higher EBITDA margin and cash flows. Industry recovery likely to continue at a gradual pace.

Equity shares have also moved higher, and outlook for common shares also remains positive.