Moody’s changes CMA CGM to stable

Moody's Investors Service said it changed the outlook on CMA CGM SA's B1 corporate family rating, B1-PD probability of default rating and B3 senior unsecured rating to stable from positive.

Concurrently, the agency affirmed the ratings.

This follows CMA CGM's announcement of a pre-conditional voluntary general cash offer to acquire Neptune Orient Lines Ltd. (NOL, unrated) for a consideration of $2.4 billion. Temasek Holdings (Private) Ltd. (Aaa stable), NOL's largest shareholder with a 67% stake, has irrevocably undertaken to tender all of its shares into the offer.

"While the affirmation reflects that CMA CGM's potential acquisition of NOL would strengthen its business profile, it also factors in an initial increase in leverage as well as potential execution risks," Marie Fischer-Sabatie, Moody's senior vice president and lead analyst for the issuer, said in a news release.

"The stable outlook reflects our view that CMA CGM will return to a financial profile in line with the B1 rating within 18 months after the acquisition closing."

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