Moody's upgrades CMA CGM

Moody's Investors Service said it upgraded CMA CGM SA’s corporate family rating to Ba2 from Ba3, probability default rating to Ba2-PD from Ba3-PD and senior unsecured ratings to Ba3 from B2. The agency also withdrew the Ba3 CFR of CEVA Logistics SA and assigned a long term issuer rating of Ba3 to CEVA, in line with the senior unsecured rating of CMA CGM.

"The upgrade to Ba2 was prompted by continued reduction in financial leverage, improved liquidity and increase in unencumbered assets, supported by more favorable industry conditions but equally important a focus on balance sheet enhancements," said Daniel Harlid, a Moody’s vice president, senior analyst and lead analyst for CMA CGM, in a press release.

"While we expect weaker market conditions in 2023-24, CMA now has a balance sheet well prepared to meet such a scenario," Harlid added.

The outlook on both issuers remains positive.

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