S&P rates Hapag-Lloyd notes B-

Standard & Poor's said it assigned a B- rating to the proposed €200 million senior unsecured and unguaranteed notes due 2018 to be issued by Hapag-Lloyd AG.

The recovery rating on the proposed notes is 6, indicating 0% to 10% expected default recovery.

The recovery rating of 6 on the proposed €200 million notes and the existing $250 million senior unsecured notes due 2017 and €480 million due 2015 is constrained by the unsecured and unguaranteed status of the notes, S&P said, and slight documentary protection against the raising of new debt.

The ratings also consider the strong security provided to virtually all the group's bank loans over the company's best assets, the agency said.

The risk of multi-jurisdictional insolvency proceedings also affects the ratings, S&P said. The three categories of notes are equally deeply subordinated vis a vis Hapag-Lloyd's enterprise value, given the significant amount of secured debt at Hapag-Lloyd, the agency added.

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