Credit where it’s due

Hapag-Lloyd and CMA CGM credit ratings upgraded ahead of ‘bumper’ Q3

Standard & Poor’s (S&P) have upgraded their credit ratings for ocean carriers Hapag-Lloyd and CMA CGM ahead of expected bumper third-quarter earnings for the container line sector.
Hapag-Lloyd’s rating is up by one notch, from ‘B+’ to ‘BB’, with a ‘positive’ outlook, the highest rating assigned to the carrier since 2010.
S&P said it expected Hapag-Lloyd to continue its solid performance, with a strengthened cash flow and reduced debt, resulting in “stronger-than-expected …

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https://theloadstar.com/hapag-lloyd-and-cma-cgm-credit-ratings-upgraded-ahead-of-bumper-q3/

Shipping lines tighten up credit terms for ‘financially risky’ NVOCCs

Ocean carriers are tightening up their credit terms with thousands of smaller NVOCCs [non-vessel-owning common carriers] due to mounting fears that many could go bust due to Covid-19.
Since the banning of shipping conferences, when credit indiscipline was considered an internal fineable breach of the terms of the rate-setting cartels, many carriers have granted generous credit facilities as an incentive to attract customers.
Indeed, before its collapse in August 2016, Hanjin Shipping …

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https://theloadstar.com/shipping-lines-tighten-up-credit-terms-for-financially-risky-nvoccs/

Moody’s downgrades Maersk’s credit rating amid fears for box shipping sector

Maersk has had its credit rating cut by ratings agency Moody’s to one grade above junk, with the agency concerned about a “significant downside” for the container industry.
Moody’s said on Friday it was downgrading Maersk from Baa2 to Baa3, which is at the bottom of its investment grade bond ratings, and just one notch above grades “judged to have speculative elements and a significant credit risk”.
Moody’s vice president, and senior …

The post Moody’s downgrades Maersk’s credit rating amid...

https://theloadstar.co.uk/moodys-downgrades-maersks-credit-rating-amid-fears-box-shipping-sector/