S&P raises Zim bond ratings
Zim said Standard & Poor’s has raised the ratings on its bonds by four grades, to BB+, and added 'a positive outlook' to the rating.
Zim said the upgrade reflected an improvement in Zim’s second quarter results, its return to profitability, and improved conditions in the global shipping market.
Zim recently reported second quarter earnings before interest, taxes, depreciation and amortization (EBITDA) of $87 million on revenue of $933 million a 72 percent over the same 2009 period.
Allon Raveh, Zim’s chief financial officer, said the “rating upgrade is a clear indication that financial arrangement we reached last year is proving itself successful. It underlines the fact that the financial arrangement was the correct move for all parties concerned, including the bond holders.
“Our bonds are now back to the rating they had before the crisis, and completed 10 grades increase, which could not have been achieved without the arrangement,” he added. “Looking ahead, there is still a degree of uncertainty in the global markets; however we have completed the first half of 2010 according to our business plan, and enjoy full backing from the banking system. I believe these are the reasons which led S&P to such a sharp increase in our rating.'