Credit rating bureau Moody's has raised its long-term rating of Maersk based on the shipping company's disciplined approach to reducing debt as well as a favorable market environment, among other things, writes analyst.
Container carriers such as Maersk, Hapag-Lloyd and CMA CGM have managed and operated their fleets in a way which makes Moody's reconsider its rather pessimistic view of the sector in light of the coronavirus, the credit rating bureau tells ShippingWatch.
The rapidly extending corona crisis and its impact on the global container industry has prompted rating bureau Moody's to lower A.P. Moeller-Maersk's and Hapag-Lloyd's outlook from "stable" to "negative".
The rapid development of the corona crisis and the subsequent lockdowns hit the container industry so hard that rating bureau Moody's now lowers A.P. Moeller-Maersk's outlook from "stable" to "negative".
Coronavirus and its impact on the container industry spell bad news for CMA CGM in its attempts to raise liquidity and lower its debt, Moody's tells ShippingWatch. Overall 2020 global GDP growth could be revised down to 1.4 percent.
Only a fourth of China's workforce has returned to factories following the Coronavirus outbreak, COO of Blue Water Shipping tells business daily. Rates for air freight to China have increased significantly, NTG estimates to the paper.
Among the three major European container lines covered by credit rating agency Moody's, Maersk is hit the hardest by the coronavirus. But CMA CGM and Hapag-Lloyd are also impacted by the outbreak, Moody's states.
CMA CGM's debt has become too high following the French container shipping company's full-scale entry into the logistics sector at a time when demand has slowed, uncertainty is rising and the number of large vessels is growing.
ShippingWatch has asked Moody's Maersk expert Maria Maslovsky to elaborate on whether the concerns about Maersk represent concerns about the entire container industry. And on why the ratings bureau is not convinced by Maersk's repeated reference to its robustness.
German shipping banks no longer represent a significant risk for the overall German banking sector, says Moody's. The banks have significantly reduced their exposure to non-performing loans in shipping.
One of the world's leading rating agencies, Moody's, once again believes in the shipping sector which no longer has negative prospects. There are positive expectations to the container and dry bulk segments, shows a report from the firm. It is a whole other story for tanker carriers.
"We're absolutely determined to stay investment grade," Maersk CFO Jakob Stausholm tells Bloomberg, after observers such as Danske Bank have warned that Maersk is at risk of being downgraded to a junk rating.