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Moody's Upgrades HMM Credit Rating

Maritime Activity Reports, Inc.

February 10, 2017

 South Korean Container carrier Hyundai Merchant Marine (HMM), which collaborates with the 2M alliance, has had its rating improved from the default rating D to instead BB, informs the carrier.

 
"Korea Investor Service (a Moody’s Affiliate)  has upgraded Hyundai Merchant Marine’s credit rating from D (Default) to BB (Stable)." says the company statement.
 
HMM has successfully overcome all the challenges through debt for equity swap and changing conditions (adjustment of charter fee / debt adjustment with bondholders etc).
 
Favorable conditions for HMM including reduced HMM’s financial burden, benefits from Korean government supports, a possibility of support from its largest shareholder, and merits as Korea’s main national flag carrier led to raise HMM’s credit rating from D to BB.
 
Expected to have a high likelihood of upgrading its credit rating based on continuous improvement on earnings.
 
Meanwhile, HMM’s debt ratio slightly increased from 186% (2016.09) to 235%, as HMM issued convertible bonds, and acquired overseas shipping terminals etc.
 

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