CMA CGM downgraded in last S&P rating
CMA CGM's request to the credit ratings agency Standard & Poor's to discontinue its ratings of the French shipping line has been approved, but not before S&P downgraded the line's rating one last time.
S&P moved CMA CGM's rating from BB+ to BB-, a similar action to other agencies Moody's and Fitch, a Lloyd's List report said Thursday.
CMA CGM has asked the agencies to stop rating its bond debt because it feels it unfairly bears the brunt of the performance of the entire carrier industry and that the ratings don't fully reflect its individual strengths, the carrier told American Shipper earlier this year.
'In our view, the ongoing deterioration in the container shipping market could constrain a recovery in CMA's financial profile in spite of the group's strong competitive position and above-average profitability for the sector,' S&P said in its final rating. 'A slower-than-anticipated recovery, combined with CMA's heavy capital expenditure commitments, could put the group's liquidity position under pressure and lead to the rating being lowered further.'