Zim downgraded by S&P

   The Israeli branch of the ratings agency Standard & Poor’s has downgraded the bond rating of the liner carrier Zim.
   The downgrade took Zim’s rating to ilB, with a negative outlook.
   On Monday, Zim hit back against the rating, saying the S&P Maalot downgrade ignores measures the line has taken to shore up its bottom line.
   “S&P’s rating methodology and rational for the bond rating downgrade, do not take into account a series of resources from sale of non-core assets and refinancing transactions which are an integral part of the company’s business plan for the next couple of years,” said Allon Raveh, Zim’s chief financial officer. “It should be noted that the said business plan and the resources it contains have been approved and supported by all relevant banks and institutions, and on this basis Zim’s financial covenants have been amended for the years 2012-3 according to plan.”
   Zim is not the first liner carrier to bristle at downgrades from ratings agencies. CMA CGM has often spoken out when its rating has dropped, saying it has unfairly borne the brunt of industry concerns, rather than specific concerns over its business.
   S&P said it continues it sees Zim struggling with negative cash flow in the year ahead. – Eric Johnson