Moody's Downgrades Maersk

From MarineLink, Dec.9:

Moody's Investors Service has downgraded ratings for AP Moller-Maersk later on a review of the Denmark-based transportation together with petroleum company. Moody's expressed concerns close lower economical growth together with the US-China merchandise war.

"The downgrade reflects our expectation that Maersk volition aspect upward increased marketplace lay together with execution risks and, every bit a result, locomote at a higher leverage than is commensurate amongst a Baa2 rating for a companionship inward such a volatile together with cyclical concern every bit container shipping," said Maria Maslovsky, Moody's Vice President -- Senior Analyst together with the Pb analyst for Maersk.

"However, nosotros admit Maersk's leadership lay every bit a liner together with container lastly operator, likewise every bit its strategy to integrate vertically into the logistics concern together with offering superior value to its customers," Maslovsky said.

In addition, nosotros sentiment positively the meaning fiscal flexibility offered yesteryear the Total S.A. shares worth simply about USD5 billion which allows Maersk to driblet dead on amongst its transformation spell at the same fourth dimension protecting its repose sheet," added Maslovsky.

Moody's believes that Maersk volition live able to rest inside this leverage attain given the company's leadership lay inward container transportation together with terminals, likewise every bit its successful integration efforts amongst honour to Hamburg Sud. Maersk indicated that it expects to locomote yesteryear its guidance for synergies from the Hamburg Sud acquisition yesteryear at to the lowest degree $100 i yard 1000 - $150 i yard 1000 compared to initial guidance.

The downgrade farther reflects meaning downside risks facing the container transportation industry, inward Moody's view....MORE