Standard & Poor downgrades CMA CGM credit rating

FRENCH shipping group CMA CGM credit rating has been downgraded despite issuing a withdrawal from ratings by Standard & Poor's agency because it feels it undermines its overall performance.

UK's Standard & Poor lowered its ratings from BB+ to BB- because of the depressed container shipping market impacting what recovery and profitability the carrier had carved out.

The credit agency's move was copied by other agencies, Moody's and Fitch, which predicted the French carrier's bond debt would put a strain on the company and further depress its 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," added S&J in a report from American Shipper.

Source: News and Data Online