Moody’s downgrades MOL, NYK
Ratings agency Moody’s has downgraded Japanese liners carriers MOL and NYK Line due to a weak freight market and overcapacity in its business segments.
Moody’s has not changed its ratings on the two lines, but has downgraded them from stable to negative.
The carriers’ “dry bulkers and tanker segments face the additional challenge of weak charterage conditions for non-long-term contracts,” the agency said. “The liner business is also weak due to oversupply, especially for its European route, and due to delays in the introduction of peak season surcharges for the U.S. route.”
MOL’s A3 and NYK’s Baaa1 rating have been maintained.
“A ratings upgrade is unlikely in the near term, given the negative outlook,” the agency said. “Changing the rating outlook to stable could result if (MOL’s or NYK’s) cash flow improves and stabilizes, leading to a strengthened balance sheet.”
Moody’s downgrades MOL, NYK
