Peter T. Leach | Mar 26, 2009 4:32PM EDT
Standard&Poor's Ratings Services last week placed CMA CGM on its CreditWatch list “with negative implications.” It placed a long-term 'BB+' corporate credit rating and 'BB-' senior unsecured debt ratings on the French container line.
"This action is a result of the continued deterioration of industry conditions and our concern that this may further weaken the group's financial credit measures," said Standard&Poor's credit analyst Stuart Clements.
He said the CreditWatch placement was prompted by the global economic downturn, which continues to depress container freight rates and operators' earnings.
“A substantial reduction in demand is now evident, at a time when ship supply continues to increase,” Clements said.
