Standard & Poor’s Ratings Services on Thursday lowered its long-term corporate credit rating on CMA CGM’s debt to “CCC plus” from “B minus”, saying its liquidity position deteriorated in the first quarter of 2012.
“We expect that it will remain under strain over the coming months in the absence of corrective actions,” S&P said in its announcement.
The French carrier posted a first-quarter loss of $248 million earlier in June but said it expects to make a full-year profit.
S&P also lowered its issue ratings on CMA CGM’s debt to “CCC minus” from “CCC”. The ratings remain on CreditWatch with negative implications, “reflecting the possibility of another downgrade within the next three months.”
“The recovery rating on the debt is ‘6’, indicating our expectation of negligible (0 percent to 10 percent) recovery in the event of a payment default,” S&P said.