Moody's Downgrades MC Shipping

Wednesday, December 13, 2000
Moody's Investors Service downgraded the senior unsecured rating for bonds issued by MC Shipping Inc to Caa3 from B3. The downgrade reflects the company's deteriorating unencumbered asset base, high leverage, tight liquidity position, weaker operating performance and continuing difficult market situation. Moody's lowered the senior implied rating for the group to Caa2 from B2 and the issuer rating to Ca from Caa1. MC Shipping's unencumbered asset base is declining as a result of the age and declining revenues related to most of its vessels. Currently, MC Shipping operates 21 second-hand vessels (nine liquid petroleum gas carriers, eight container ships, and four multipurpose carriers), eight of which are intended for sale. In its results for the first nine months of fiscal year 2000 the company generated a marginal operating profit, but recognized the shrinking value of its fleet by an extraordinary write down of the book values and incurred losses on the disposal of vessels together resulting in a significant net loss. Moody's is concerned that any possible improvement in the trading conditions of MC Shipping may be insufficient to generate the free cash flows necessary for fleet renewal and debt service. The company's high leverage and tight liquidity are limiting its financial flexibility. MC Shipping Inc., a Liberian corporation, owns and operates a fleet of second-hand vessels. The company had sales of approximately $44 million for the nine months ended September 30, 2000 and recorded a net loss of approximately $26 million.

Maritime Today

The Maritime Industry's original and most viewed E-News Service

Maritime Reporter November 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Idling Fleet Continues to Surge

Owners are rapidly laying up containerships as the market slows. The size of the idle fleet will get bigger while rates and profits slide, says Drewry Shipping Consultants Limited.

Egypt to Complete East Port Said Side Channel in 2016

Egypt plans to complete a side channel in East Port Said, near the Suez Canal, that would speed up shipping and allow ships direct entry into the port by the end of June 2016,

Concordia Maritime Charters MR Tanker

Concordia Maritime has signed a contract for the charter of an IMO2/3 class MR tanker, the company announced today. The vessel will be chartered jointly with Stena Weco,


S&P Raises Steamship Mutual outlook to Positive

Poor’s has revised its outlook on Steamship Mutual to Positive from Stable. The A- financial strength rating has been reaffirmed. In their announcement Standard

Norwegian Escape with Biggest Scrubbers sets Sail

On a sunny October day in the German harbor-town of Hamburg, M/V Norwegian Escape, a brand new cruise ship, sets sail for the first time. On board are five Yara SOx scrubbers – one for each engine.

ZIM Integrated Shipping Remains Profitable

Despite challenging market environment with freight rates reaching historic lows in several key trades,  ZIM Integrated Shipping Services continues to outperform

Maritime Contracts Maritime Security Naval Architecture Pod Propulsion Salvage Ship Electronics Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0819 sec (12 req/sec)