Standard Poor News

Carnival Corp announced Thursday its AIDA Cruises brand has extended its global pause on operations through the end of August due to health concerns surrounding the conronavirus pandemic."Given the gradual easing in intra-European travel, AIDA Cruises believes it will resume its cruise operation later this summer. However, the conditions for safe travel do not yet exist in many destinations worldwide," the company said in a statement.After first suspending voyages in March, Carnival announced in May that German-based AIDA would cancel all cruises globally through July 31.

Ratings agency Standard & Poor’s on Tuesday downgraded bonds of Carnival Corp to junk status, forecasting continued weak demand for the cruise industry hammered by the COVID-19 pandemic.Standard & Poor’s cut its rating on the world’s biggest cruise operator’s secured bonds to ‘BB+’ from ‘BBB-‘, and its unsecured bonds to ‘BB-‘ from ‘BBB-‘. Both are now regarded as non-investment grade or junk bonds.Carnival’s overall issuer credit rating was also lowered to ‘BB-‘ from ‘BBB-‘.

Denmark-based energy giant successfully issued green hybrid capital securities for €600m ($660m) to refinance existing securities issued in 2015.The latest issue will have a maturity in 3019 and first call option after eight years, the Danish energy company said.Investments undertaken by Ørsted A/S in green renewable energy projects will be allocated to the new issue corresponding to the amount issued in accordance with Ørsted’s Green Finance Framework, which has received a second opinion with a Dark Green shading from Cicero.Ørsted A/S is rated Baa1, stable outlook, by Moody’s, BBB+, stable outlook, by Standard & Poor’s, and BBB+, stable outlook…

Ørsted, the largest energy company in Denmark, has secured nominal TWD 12 billion (USD 395m) through the issuance of green senior bonds, to finance its investments in offshore wind in Taiwan. This transaction marks the first ever green TWD bond to be issued by a foreign corporate in Taiwan. The bonds will be issued in accordance with Ørsted’s Green Finance Framework.Ørsted CFO Marianne Wiinholt, said: “We are very pleased with the completion of this historic transaction which is an important step in the financing of the Changhua 1 & 2a project. We are proud to help develop the local financial market with respect to green financing and this underlines our commitment to Ørsted’s activities in Taiwan”.Matthias Bausenwein…

The Port of Tauranga,  the largest port in New Zealand, reported profit after tax of more than $100 million for the first time.Group net profit was 6.7 per cent up on the previous year at $100.6 million, fulfilling previous earnings guidance of delivering at the upper end of $96 million to $101 million.The port handled close to 27 million tonnes of cargo, an increase of 10.2 per cent in volume, with container cargo growing 4.3 per cent to more than 1.1 million TEUs, or twenty foot equivalents.Exports increased 11.2 per cent to 17.1 million tonnes while imports rose 8.4 per cent to 9.8 million tonnes.Transhipments, where containers are transferred from one service to another…

For the fourth consecutive year, Fitch Ratings has affirmed the Panama Canal's 'A' investment grade rating with a stable outlook for its long-term issuer default rating and its senior unsecured notes.The credit rating agency noted that the Panama Canal is "an underlying asset that is critical not only for Panama, but for international commerce, as demonstrated by its stable volume performance, solid competitive position, and well-diversified cargo mix," causing the Panama Canal volume profile to exhibit high levels of resilience.In addition, Fitch Ratings distinguished the Canal as a key player in global trade with a privileged geographical…

The global provider of benchmarks and investible indices, Standard & Poor’s (S&P) has affirmed the ‘BBB+’ Issuer Credit Rating on Danish Ship Finance and revised the outlook to ‘Stable’ from ’Negative’." We are revising our outlook on Danmarks Skibskredit to stable from negative and affirming the 'BBB+/A-2' issuer credit ratings," it said.S&P justifies the revision with the company’s reduction in nonperforming exposures and robust capitalization and liquidity, which would reduce potential repercussions from the shipping sector’s cyclicality."Danmarks Skibskredit has reduced its nonperforming exposure, and we expect its asset quality to remain stable amid the slowing global economy and trade tensions…

Moody's Investors Service reaffirmed the Panama Canal Authority's (ACP) A2 long-term rating with a stable outlook, based on its distinctive position as an infrastructure asset with a unique geographic advantage and business model, and its strong historical operational and financial performance.According to Moody's, the ACP's strong financial performance has resulted in better than anticipated financial metrics, driven by the successful operations of the Expanded Panama Canal. The credit rating agency noted the Canal's strong operating track record and robust growth after the Expansion.Factoring into its decision, Moody's cited "the Canal's…

Two years after the inauguration of the Expanded Panama Canal, Standard & Poor's (S&P) Global Ratings revised its outlook on the Panama Canal from ‘stable’ to ‘positive’ – demonstrating the global impact of the historic waterway. The rating agency also affirmed its 'A-' rating for the Panama Canal, ranking the ACP two notches above that of the sovereign foreign currency rating. The Panama Canal's outlook indicates the rating agency's expectation that it will generate relatively stable annual earnings before interest, taxes, depreciation, and amortization (EBITDA) due to transit growth, made possible by favorable trends in world trade commerce and the consolidations of the Neopanamax Locks’ operations.

Corporate Credit Rating agency Standard & Poor's has affirmed at B+. The rating agency acknowledges debt prepayments and cost synergies and expects adequate liquidity in 2018. Rating agency Standard & Poor’s affirmed Hapag-Lloyd’s B+ rating and revised the outlook from negative to stable. Hapag-Lloyd’s debt prepayments and cost synergies after the integration of UASC combined with improved shipping rates and stable near-term industry prospects will support rating-commensurate financial measures and liquidity through 2018, Standard & Poor’s mentioned in the Research Update. The outlook revision reflects the expectation that Hapag-Lloyd's improved EBITDA performance and gradual debt reduction will contribute to rating commensurate credit metrics and adequate liquidity in 2018.

CMA CGM, the world’s third-largest container shipping group, posted a third-quarter net profit of $323 million, up from $219 million in the previous quarter and a $268 million loss a year earlier. During the third quarter, volumes carried by CMA CGM experienced a strong growth of +11.6% in comparison to Q3 2016. During the period, CMA CGM carried close to 5 million containers, a record figure. This increase can be explained by the strong growth in volumes carried through OCEAN Alliance, on the Asia-USA and Asia-Europe routes, as well as on most of the North-South and Intraregional routes. The increase in freight rates seen at the beginning of the year has continued through this quarter, enabling an increase of 14.4% in average revenue per container carried.

Rating agency Standard & Poor’s confirmed Hapag-Lloyd’s B+ rating and took the company off its CreditWatch with future negative implications. Hapag-Lloyd was upgraded to Outlook Negative. The merger with UASC has added debt to Hapag-Lloyd’s capital structure. However, due to the acquired ships and containers of UASC no bigger investments are planned in the next few years. Thus, more cash flow should be available for repayment of debt and deleveraging. “The company should be able to maintain credit ratios we consider commensurate with the current rating in 2017-2018,” Standard & Poor’s wrote in the Research Update. The rating agency also acknowledged the competitive advantages of the merger with UASC such as Hapag-Lloyd’s larger size and capacity…

Following a request by The Shipowners’ Mutual Protection and Indemnity Association (Luxembourg), as from 19 May 2017 AM Best will  no longer provide a rating of the Club. This decision was taken by the Club in December 2016 following a review of the costs and benefits of maintaining two interactive ratings, coupled with a review of market practice and appetite for rating information. The Shipowners Board concluded that Members’ interests would be best served by having only one rating in future. This rating will be provided by Standard & Poor’s, who currently rate Shipowners at ‘A’ (Stable outlook). The Club’s rating underlines the financial strength of the Club.

A.P. Moller-Maersk's new chairman committed to automating its systems as the oil and shipping group steps up its drive to become more efficient and save costs at a time of low oil prices and declining freight rates. The more than 100-year-old conglomerate's digital push will mean that in theory, it should be as easy to book a container as booking an airline ticket, Chairman Jim Hagemann Snabe told Reuters shortly after he was elected. "We transport goods in the physical world and that won't change as we won't start beaming things around the world…

Today, Moody's credit rating agency announced that it has assigned an A2 rating to the Panama Canal Authority (ACP) for its business model, unique geographic advantage, and historically strong operational and financial performance. Moody's expects this performance to continue into the future, supported by the robust institutional framework and corporate governance under which the ACP operates. In its report, the credit rating agency highlighted that one of the ACP's largest financial strengths is its “clear legal and institutional framework,” which supports a reliable and stable operating environment for the entity moving forward. They also noted that the ACP's assigned rating is just above Panama’s country ceiling of A3…

Moody's downgraded A.P. Moller-Maersk's credit rating on Tuesday, piling pressure on the world's biggest container shipper as it juggles a major restructuring with a multi-billion dollar acquisition of a German rival. Moody's said the downgrade from Baa1 to Baa2 with a negative outlook "reflects Maersk's deteriorating credit profile". The credit rating firm put the Danish shipping company under review in September, when it announced a split-up to focus on the shipping business and spin off its energy assets.

The world's biggest container shipper A.P. Moller-Maersk may consider selling assets or cutting dividends as it seeks to retain its credit rating, the company said on Tuesday. Maersk's Baa1 credit rating was put under review for a downgrade by Moody's in September, after it announced it would split up the company to focus on the shipping business and spin off its energy assets. Last month, Standard & Poor's lowered the company's credit rating to BBB from BBB+ with a negative outlook.

The Port of Angeles has expanded its commitment to sustainability by issuing $35.2 million in green bonds as part of a larger debt refinancing successfully completed this week. The move marks the first time a U.S. port has entered the growing sustainability bond market where investors support projects and companies making positive social and environmental change. “Running a competitive and environmentally responsible port permeates every facet of our operations,’’ said Marla Bleavins, the Port’s Deputy Executive Director and Chief Financial Officer. The green bonds are part of an overall $201.6 million bond issue that will net the Port a record present value savings of $32.5 million, an average of $1.9 million annually through 2040.

Two partners in port project have entered administration means that port charges are now higher for other backers. Glencore and five other miners backing the world's most expensive coal port in Australia face extra annual charges of A$150 million after the restructuring of one of their partners this month, the latest to buckle under slumping commodity prices. The additional charge will deal a blow to the remaining backers of the A$2.6 billion ($2 billion) Wiggins Island Coal Export Terminal (WICET) in east Australia at a time when they are grappling with floundering coal markets. Mining and trading giant Glencore and seven partners began negotiations to build WICET in 2008 near the height of a coal boom…

The 24 fishing boats rusting in the harbour of Mozambique's capital were meant to be a modern tuna fleet that would rake in hard currency, create jobs and provide a cheap source of protein for one of the world's poorest countries. Instead, they have become monuments to government mismanagement and heavy lending by Western banks that have buried a promising African economy in a deep debt crisis. The boats, moored in the harbour of Maputo, were paid for out of an $850-million loan arranged in 2013 by Credit Suisse and Russia's VTB to finance "fishing infrastructure". The cash came in the form of a government-backed bond to state tuna-fishing company Ematum.

Global capital markets reeled on Friday after Britain voted to leave the European Union, with $2 trillion in value wiped from equity bourses worldwide, while money poured into safe-haven gold and government bonds. Sterling suffered a record plunge. The blow to investor confidence and the uncertainty the vote has sparked could keep the Federal Reserve from raising interest rates as planned this year, and even spark a new round of emergency policy easing from major central banks. The traditional safe-harbor assets of top-rated government debt, the Japanese yen and gold all jumped. Spot gold rose more than 5 percent and the yield on the benchmark 10-year U.S. Treasury note fell to lows last seen in 2012 at 1.5445 percent. Stocks tumbled in Europe.

Fitch Ratings has affirmed the following ratings for the Panama Canal Authority (ACP): Long-Term Issuer Default Rating (IDR) at 'A' and $450 million senior unsecured notes at 'A', reflecting the ACP's solid revenue profile and low leverage levels. Fitch Ratings highlighted that the Panama Canal provides unique connectivity and time savings for world maritime trade. In addition, Fitch Ratings stated that the rating outlook is stable, noting the following ratings drivers: the Panama Canal's resilience to economic downturns…

French container shipping giant CMA CGM is to buy Singapore's Neptune Orient Lines for $2.4 billion, making its biggest-ever acquisition to help it to ride out a severe market downturn. The takeover, which the companies expect to proceed in mid-2016 following anti-trust approvals, would cement family-owned CMA CGM's spot as the world's third-largest container shipping line by handing it market leadership on busy trans-Pacific routes. The acquisition of state-controlled Neptune crowns a recovery for CMA CGM and its founding Saade family…