Standard & Poor's lowers CMA CGM for NOL acquisition

French carrier CMA CGM, the world's third largest container carrier, will see its profits squeezed over the next two years, just as liquidity will be tight in the coming months, projects Standard & Poor's, which has lowered the carrier's credit rating. The acquisition of NOL is cited as one reason.

Standard & Poor's has lowered its long-term forecast for France's CMA CGM, the world's third largest container carrier, and the rating bureau has downgraded its rating of the carrier from "B" to "B+" to negative. The reason is the low rates in the container industry, which will put pressure on the carrier's profits in 2016 and 2017, while the liquidity in the coming quarters may be strained.

CMA CGM's acquisition of Singapore-based container carrier Neptune Orient Lines (NOL) is expected to be finalized by mid-2016, if the competitions authorities approve the purchase. The USD 2.4 billion acquisition is partly financed by loans, and factoring in CMA CGM's further fleet expansion, this acquisition is now hurting the carrier's credit rating, notes Standard & Poor's.

Already a subscriber? Log in.

Read the whole article

Get access for 14 days for free.
No credit card is needed, and you will not be automatically signed up for a paid subscription after the free trial.

  • Access all locked articles
  • Receive our daily newsletters
  • Access our app
An error has occured. Please try again later.

Get full access for you and your coworkers.

Start a free company trial today

More from ShippingWatch

Seaspan to supply container fleet with green fuels

Seaspan has a new strategy underway, through which the major tonnage provider plans to use its network to enter a number of a new business areas, with one area being delivery of green fuel to its customers.

Further reading

Related articles

Latest news

See all jobs