Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 1
- Creatore Discussione TRADING_IDEAS
- Data di Inizio
- Stato
Cat XL
Shizuka Minamoto
Moody's downgrades CMA CGM to B3; places ratings on review for further downgrade
Nuovo downgrade di Moody's. Intanto la societa' si aspetta un pricing migliore. Francamente queste societa' di rating non hanno molto seguito...
Rating Action: Approximately USD900 million worth of rated debt affected
Milan, March 13, 2012 -- Moody's Investors Service has today downgraded CMA CGM's corporate family rating (CFR) to B3 from B2, and the probability of default rating (PDR) to Caa1 from B2. Concurrently, Moody's has downgraded to Caa2 from Caa1 CMA CGM S.A.'s EUR325 million and USD475 million worth of senior unsecured notes maturing in 2019 and 2017, respectively. All the company's ratings remain on review for further downgrade.
RATINGS RATIONALE
"Today's rating action was t
riggered primarily by the publication of CMA CGM's FY 2011 results, which are weaker than our expectations and not in line with the guidance that we previously set out for the company to remain in the B2 rating category," says Marco Vetulli, a Moody's Vice President -- Senior Credit Officer and lead analyst for CMA CGM. "The rating action also reflects the company's announcement that it intends to extend a proposal to its banks regarding the restructuring of part of its debt," adds Mr Vetulli. CMA CGM's weaker-than-expected results partially reflect the poor performance of the container shipping industry during 2011. This was caused by the oversupply of vessels on the water, which resulted in freight rates being cut to a very low level as well as high bunker costs that could not be passed on to customers.
During 2011, the highly competitive structure of the shipping industry and concerns over increased capacity coming on stream exerted pressure on operators to maintain or expand their market shares. Operators did this by lowering their freight rates, which has made it difficult for these companies, including CMA CGM, to pass on the material cost increases despite good traffic volumes.
However, Moody's continues to acknowledge that CMA CGM has a sound business profile with solid market shares globally, as well as a distinctive position in some secondary, more profitable shipping lanes. CMA CGM also successfully strengthened its capital base early in 2011 and sold certain assets recently. Moreover, its limited order-book, limits its financial needs for capital spending in the near future. The current B3 CFR incorporates Moody's assumption that, as a result of the reduction of capacity on the main trade lanes that is currently under way, freight rates could recover over the coming months as the volume of traffic increases, in line with the seasonal pattern of the industry.
One side-effect of CMA CGM's negative performance during 2011 is a significant reduction in its liquidity headroom. This has driven the company to proactively approach its bank lenders to discuss a restructuring of its debt for 2012 and 2013. A restructuring of CMA CGM's debt could help the company in maintain a cash buffer sufficient to better withstand the business volatility of the industry.
The two notch downgrade of the probability-of-default rating (PDR) to Caa1, which is now one notch lower than the corporate family rating of B3, reflects Moody's view that the weakening of CMA CGM's liquidity has significantly increased its probability of default. Moody's also changed its estimate of mean family recovery rate to 65% , versus 50% normally utilised, given the fact that we believe recovery would be higher than previously factored in the ratings also as a reflection that a default through a debt restructuring could imply limited losses for creditors.
Moody's acknowledges that CMA CGM has obtained in November 2011 approval from its lenders to waive the covenant test due at year-end 2011.However, in the rating agency's view, the coming quarters will remain challenging for the company if the current market conditions do not to improve substantially. The current B3 rating factors in Moody's assumption that CMA CGM's financing structure is expected to remain sustainable if the expected recovery in cash-flows materializes in 2012.
The review process will mainly focus on (i) the sustainability of the recent improvement in freight rates (ii) CMA CGM's capability to improve its financial performance during 2012 compared with 2011's; (iii) the liquidity of the company in the next few months and (iv) the main terms and conditions under which the debt-restructuring process would be finalised.
WHAT COULD CHANGE THE RATING UP/DOWN
Given that CMA CGM's ratings are on review for downgrade, Moody's does not expect upward rating pressure at this point. Downward pressure on the rating could result from (i) a lack of short-term improvement in market conditions leading to CMA CGM's financial leverage failing to decrease below 7.0x; or (ii) the company's EBIT/interest expense coverage failing to increase materially above 1.0x, both by the end of 2012. Further downward pressure on the ratings could result from liquidity pressures and/or if the company were to fail to restore headroom under covenants.
Downgrades:
..Issuer: CMA CGM S.A
.... Probability of Default Rating, Downgraded to Caa1 from B2
.... Corporate Family Rating, Downgraded to B3 from B2
....Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2 LGD4, 63 % from Caa1
....Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2 LGD4, 63 % from Caa1
All the company's ratings remain on review for further downgrade.
PRINCIPAL METHODOLOGIES
The principal methodology used in rating CMA CGM S.A. was the Global Shipping Industry Methodology published in December 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Please see the Credit Policy page on Moody's - credit ratings, research, tools and analysis for the global capital markets for a copy of these methodologies.
Headquartered in Marseilles, France, CMA CGM S.A. is the third-largest container shipping company in the world (measured in twenty-foot equivalent units, or TEU). CMA CGM recorded of USD14.9 billion in 2011, and employed approximately 18,100 employees worldwide. As of December 2011, CMA CGM's fleet amounted to 394 container ships ( 303 chartered-in and 91 owned), with a total capacity of 1.345 million TEU.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides relevant regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on Moody's - credit ratings, research, tools and analysis for the global capital markets.
The rating has been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.
Information sources used to prepare the rating are the following: parties involved in the ratings, public information, and confidential and proprietary Moody's Investors Service information.
Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.
Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.
Moody's Investors Service may have provided Ancillary or Other Permissible Service(s) to the rated entity or its related third parties within the two years preceding the credit rating action. Please see the special report "Ancillary or other permissible services provided to entities rated by MIS's EU credit rating agencies" on the ratings disclosure page on our website Moody's - credit ratings, research, tools and analysis for the global capital markets for further information.
Please see the ratings disclosure page on Moody's - credit ratings, research, tools and analysis for the global capital markets for general disclosure on potential conflicts of interests.
Please see the ratings disclosure page on Moody's - credit ratings, research, tools and analysis for the global capital markets for information on (A) MCO's major shareholders (above 5%) and for (B) further information regarding certain affiliations that may exist between directors of MCO and rated entities as well as (C) the names of entities that hold ratings from MIS that have also publicly reported to the SEC an ownership interest in MCO of more than 5%. A member of the board of directors of this rated entity may also be a member of the board of directors of a shareholder of Moody's Corporation; however, Moody's has not independently verified this matter.
Please see Moody's Rating Symbols and Definitions on the Rating Process page on Moody's - credit ratings, research, tools and analysis for the global capital markets for further information on the meaning of each rating category and the definition of default and recovery.
Please see ratings tab on the issuer/entity page on Moody's - credit ratings, research, tools and analysis for the global capital markets for the last rating action and the rating history.
The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website Moody's - credit ratings, research, tools and analysis for the global capital markets for further information.
Please see Moody's - credit ratings, research, tools and analysis for the global capital markets for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
Marco Vetulli
VP - Senior Credit Officer
Corporate Finance Group
Moody's Italia S.r.l
Corso di Porta Romana 68
Milan 20122
Italy
Telephone:+39-02-9148-1100
Eric de Bodard
MD - Corporate Finance
Corporate Finance Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Releasing Office:
Moody's Italia S.r.l
Corso di Porta Romana 68
Milan 20122
Italy
Telephone:+39-02-9148-1100
Cat,
su questa ho 2 mancati trade :
la 1a volta sulla 5.50% 2012 nel 2009
la 2a volta poco temp ofa quando abbiamo iniziato a parlarne
il motivo è sempre stato quello...mancanza di comunicazione e trasparenza.
Ora però vedo che il vento sta cambiando e si può riconsiderare un eventuale ingresso a prezzi più bassi, da monitorare.
Se e quando hai news tu posta che ho il grilletto puntato...oggi mentre andavo in uff. è passato un camion autoarticolato che trasportava un container CMA CGM, giuro
Nuovo downgrade di Moody's. Intanto la societa' si aspetta un pricing migliore. Francamente queste societa' di rating non hanno molto seguito...
Rating Action: Approximately USD900 million worth of rated debt affected
Milan, March 13, 2012 -- Moody's Investors Service has today downgraded CMA CGM's corporate family rating (CFR) to B3 from B2, and the probability of default rating (PDR) to Caa1 from B2. Concurrently, Moody's has downgraded to Caa2 from Caa1 CMA CGM S.A.'s EUR325 million and USD475 million worth of senior unsecured notes maturing in 2019 and 2017, respectively. All the company's ratings remain on review for further downgrade.
RATINGS RATIONALE
"Today's rating action was t
riggered primarily by the publication of CMA CGM's FY 2011 results, which are weaker than our expectations and not in line with the guidance that we previously set out for the company to remain in the B2 rating category," says Marco Vetulli, a Moody's Vice President -- Senior Credit Officer and lead analyst for CMA CGM. "The rating action also reflects the company's announcement that it intends to extend a proposal to its banks regarding the restructuring of part of its debt," adds Mr Vetulli. CMA CGM's weaker-than-expected results partially reflect the poor performance of the container shipping industry during 2011. This was caused by the oversupply of vessels on the water, which resulted in freight rates being cut to a very low level as well as high bunker costs that could not be passed on to customers.
During 2011, the highly competitive structure of the shipping industry and concerns over increased capacity coming on stream exerted pressure on operators to maintain or expand their market shares. Operators did this by lowering their freight rates, which has made it difficult for these companies, including CMA CGM, to pass on the material cost increases despite good traffic volumes.
However, Moody's continues to acknowledge that CMA CGM has a sound business profile with solid market shares globally, as well as a distinctive position in some secondary, more profitable shipping lanes. CMA CGM also successfully strengthened its capital base early in 2011 and sold certain assets recently. Moreover, its limited order-book, limits its financial needs for capital spending in the near future. The current B3 CFR incorporates Moody's assumption that, as a result of the reduction of capacity on the main trade lanes that is currently under way, freight rates could recover over the coming months as the volume of traffic increases, in line with the seasonal pattern of the industry.
One side-effect of CMA CGM's negative performance during 2011 is a significant reduction in its liquidity headroom. This has driven the company to proactively approach its bank lenders to discuss a restructuring of its debt for 2012 and 2013. A restructuring of CMA CGM's debt could help the company in maintain a cash buffer sufficient to better withstand the business volatility of the industry.
The two notch downgrade of the probability-of-default rating (PDR) to Caa1, which is now one notch lower than the corporate family rating of B3, reflects Moody's view that the weakening of CMA CGM's liquidity has significantly increased its probability of default. Moody's also changed its estimate of mean family recovery rate to 65% , versus 50% normally utilised, given the fact that we believe recovery would be higher than previously factored in the ratings also as a reflection that a default through a debt restructuring could imply limited losses for creditors.
Moody's acknowledges that CMA CGM has obtained in November 2011 approval from its lenders to waive the covenant test due at year-end 2011.However, in the rating agency's view, the coming quarters will remain challenging for the company if the current market conditions do not to improve substantially. The current B3 rating factors in Moody's assumption that CMA CGM's financing structure is expected to remain sustainable if the expected recovery in cash-flows materializes in 2012.
The review process will mainly focus on (i) the sustainability of the recent improvement in freight rates (ii) CMA CGM's capability to improve its financial performance during 2012 compared with 2011's; (iii) the liquidity of the company in the next few months and (iv) the main terms and conditions under which the debt-restructuring process would be finalised.
WHAT COULD CHANGE THE RATING UP/DOWN
Given that CMA CGM's ratings are on review for downgrade, Moody's does not expect upward rating pressure at this point. Downward pressure on the rating could result from (i) a lack of short-term improvement in market conditions leading to CMA CGM's financial leverage failing to decrease below 7.0x; or (ii) the company's EBIT/interest expense coverage failing to increase materially above 1.0x, both by the end of 2012. Further downward pressure on the ratings could result from liquidity pressures and/or if the company were to fail to restore headroom under covenants.
Downgrades:
..Issuer: CMA CGM S.A
.... Probability of Default Rating, Downgraded to Caa1 from B2
.... Corporate Family Rating, Downgraded to B3 from B2
....Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2 LGD4, 63 % from Caa1
....Senior Unsecured Regular Bond/Debenture, Downgraded to Caa2 LGD4, 63 % from Caa1
All the company's ratings remain on review for further downgrade.
PRINCIPAL METHODOLOGIES
The principal methodology used in rating CMA CGM S.A. was the Global Shipping Industry Methodology published in December 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Please see the Credit Policy page on Moody's - credit ratings, research, tools and analysis for the global capital markets for a copy of these methodologies.
Headquartered in Marseilles, France, CMA CGM S.A. is the third-largest container shipping company in the world (measured in twenty-foot equivalent units, or TEU). CMA CGM recorded of USD14.9 billion in 2011, and employed approximately 18,100 employees worldwide. As of December 2011, CMA CGM's fleet amounted to 394 container ships ( 303 chartered-in and 91 owned), with a total capacity of 1.345 million TEU.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt, this announcement provides relevant regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides relevant regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides relevant regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on Moody's - credit ratings, research, tools and analysis for the global capital markets.
The rating has been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.
Information sources used to prepare the rating are the following: parties involved in the ratings, public information, and confidential and proprietary Moody's Investors Service information.
Moody's considers the quality of information available on the rated entity, obligation or credit satisfactory for the purposes of issuing a rating.
Moody's adopts all necessary measures so that the information it uses in assigning a rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.
Moody's Investors Service may have provided Ancillary or Other Permissible Service(s) to the rated entity or its related third parties within the two years preceding the credit rating action. Please see the special report "Ancillary or other permissible services provided to entities rated by MIS's EU credit rating agencies" on the ratings disclosure page on our website Moody's - credit ratings, research, tools and analysis for the global capital markets for further information.
Please see the ratings disclosure page on Moody's - credit ratings, research, tools and analysis for the global capital markets for general disclosure on potential conflicts of interests.
Please see the ratings disclosure page on Moody's - credit ratings, research, tools and analysis for the global capital markets for information on (A) MCO's major shareholders (above 5%) and for (B) further information regarding certain affiliations that may exist between directors of MCO and rated entities as well as (C) the names of entities that hold ratings from MIS that have also publicly reported to the SEC an ownership interest in MCO of more than 5%. A member of the board of directors of this rated entity may also be a member of the board of directors of a shareholder of Moody's Corporation; however, Moody's has not independently verified this matter.
Please see Moody's Rating Symbols and Definitions on the Rating Process page on Moody's - credit ratings, research, tools and analysis for the global capital markets for further information on the meaning of each rating category and the definition of default and recovery.
Please see ratings tab on the issuer/entity page on Moody's - credit ratings, research, tools and analysis for the global capital markets for the last rating action and the rating history.
The date on which some ratings were first released goes back to a time before Moody's ratings were fully digitized and accurate data may not be available. Consequently, Moody's provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website Moody's - credit ratings, research, tools and analysis for the global capital markets for further information.
Please see Moody's - credit ratings, research, tools and analysis for the global capital markets for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.
Marco Vetulli
VP - Senior Credit Officer
Corporate Finance Group
Moody's Italia S.r.l
Corso di Porta Romana 68
Milan 20122
Italy
Telephone:+39-02-9148-1100
Eric de Bodard
MD - Corporate Finance
Corporate Finance Group
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Releasing Office:
Moody's Italia S.r.l
Corso di Porta Romana 68
Milan 20122
Italy
Telephone:+39-02-9148-1100
nik.sala
Money Never Sleeps
cat nr. 1
che dici, si potrebbe rientrare ???
Io su uno storno di 10 punti la valuterei seriamente.
posto prezzi operativi di oggi gentilmente offerti da un amico :
Cma XS0618662562 => 65.90/67.30 dai sotto i 50
Cem XS0452168536 => 93.00/95.00
capt.harlock
MENA IL CAMMELLO FAN CLUB
cat nr. 1
che dici, si potrebbe rientrare ???
Io su uno storno di 10 punti la valuterei seriamente.
posto prezzi operativi di oggi gentilmente offerti da un amico :
Cma XS0618662562 => 65.90/67.30 dai sotto i 50
Cem XS0452168536 => 93.00/95.00
xcma sembra esserci denaro a 68 stamattina
bulogna
Forumer storico
Stabile
capt.harlock
MENA IL CAMMELLO FAN CLUB
le t. cook che avevi segnalato sono nella parte alta del tabellone anche oggi
https://www.boerse-stuttgart.de/de/marktundkurse/anleihen/corporatebonds/corporatebonds.html
nik.sala
Money Never Sleeps
ripreso cip di ikb @ 90.43
ikb 219 88.00/90.00 poi salito a 90.50
clondalkin 848 84.00/85.00
fabriziof
Forumer storico
certo clondalkin alletta ,32% in 2 anni .
Gaudente
Forumer storico
Adesso capisco perche' il loro bilancio e' accessibile solo ad investitori qualificati
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HIGH YIELD e oltre, verso frontiere inesplorate, vol.3
