AP Moller-Maersk remains the only investment-grade credit in the container shipping space despite a series of recent credit upgrades.
Further improvements to container ratings will now depend on the extent of shareholder payouts, earning-and-cash-flow-to-debt ratios, and long-term EBIT margins.
The seven container credits covered by Moody’s ratings agency again showed considerable movement over the past six months with three credits receiving an upgrade – Wan Hai (from Ba2 to Ba1), CMA CGM (from Ba3 to Ba2), Danaos (from B1 to Ba3).
Three more companies received an improved credit outlook – Maersk, Hapag-Lloyd and Global Ship Lease saw their prospects converted from stable to positive.
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