[191013.EN.SEA] Moody's Upgrades CMA CGM After Asset Sale, Declaring Outlook 'Stable'

FRENCH container shipping giant CMA CGM has received a credit ratings boost from Moody's in recognition of its improved financial position, reports Lloyd's List.

The recent sale of a large stake in CMA CGM's terminals business has helped to improve the French line's prospects of relieving its high level of debt said to top US$3.8 billion.

Moody's has lifted CMA CGM's corporate family rating to B2 from B3 and adjusted the company's probability of default rating to B2-PD from B3-PD.

The rating agency also upgraded the outlook to "stable", or Caa1 from Caa2. CMA CGM's EUR25 million (US$439 million) in senior unsecured notes to mature 2019 and another tranche of $475 million in debt due in 2017.

Said Moody vice president Marco Vetulli: "We upgraded CMA CGM's rating to B2 to recognise the return of the company to a more stable operating and financial profile following the completion of its restructuring and because of its strengthened liquidity position after the sale of 49 per cent of its terminal business as well as a $150 million equity injection as part of its restructuring."

Source : HKSG.