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Several carriers are trying to secure fresh capital to ride out the crippling downturn that has depressed container shipping to historic lows, reports Alphaliner Weekly Newsletter.
The Paris-based agency said Singaporean shipping giant NOL is launching a US$1 billion rights issue, marking the largest shipping deal so far this year. CSAV has implemented the first stage of a $710 million restructuring programme, with the launch of a $130 million rights issue.
Meanwhile, Zim has received the first tranche of a $150 million aid package from its parent company, Israel Corp., with a $50 million loan injection.
The report noted that similar to other shipping lines, these three companies have suffered large first quarter losses and negative operating cash flows. They also have significant capital investment commitments that will further drain their cash resources.
French shipping heavyweight CMA CGM has decided to withdraw its debt instruments from being rated by credit agencies. The company is said to have been frustrated by the agencies' apparent failure to "understand the container shipping industry."
Alphaliner expects the move will pre-empt further rating cuts as both Fitch and Moody's recently lowered the rating on CMA CGM's corporate debt, with S&P also expected to follow suit with the company's debt securities placed on negative credit watch since March.
In a related development, MOL has rejected claims that it may spin-off its container shipping business to curb the cash drain from this unit that has been dragging down the group's earnings.
qq.com