Citigroup Fears Dry Bulk Rate Compression Will Continue To Impact Safe Bulkers Operations

Citigroup believes the carrier day rates will remain weak. The bank doesn't see a liquidity problems, reiterating similar comments from Morgan Stanley on Tuesday, and sees the balance as "stretched". "financing its newbuild schedule in the face of limited free cash flow will marginalize equity value in the near-term, even using a peak multiple on trough earnings. Thus, our downgrade."