Moody’s lowers Hapag-Lloyd to stable

Moody's Investors Service said it changed the outlook on the B2 corporate family rating, B2-PD probability of default rating and Caa1 senior unsecured bond ratings of Hapag-Lloyd AG to stable from positive and affirmed the ratings.

The action follows the signing of an agreement by Hapag-Lloyd to combine its container liner shipping activities with those of United Arab Shipping Co. (UASC, unrated).

"We have changed the outlook on Hapag-Lloyd's ratings to stable from positive because, while the UASC deal will make it a top-five global player in the industry, strengthen its Middle Eastern market share and offer cost advantages, the merger will significantly increase its leverage in the near-term," Maria Maslovsky, Moody's vice president, senior analyst and lead analyst for Hapag-Lloyd, said in a news release.

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