Moody’s might cut A.P. Moller

Moody's Investors Service said it placed the Baa1 issuer rating, Baa1 senior unsecured rating and provisional Baa1 medium-term note program rating of A.P. Moller-Maersk A/S on review for downgrade.

This follows the company's announcement that it will become an integrated transportation and logistics company while separating the oil and oil related activities over the next 24 months.

"We have placed the ratings of Maersk on review for downgrade because we believe that its business diversification will reduce significantly with the separation of its energy businesses which represented 62% of EBITDA as of the first half of 2016. The review will likely result in a downgrade of at least one notch, although ultimately the rating will depend on the amount of debt that will be allocated to the integrated transport and logistics company, as well as any remaining ownership interests in the energy businesses," Maria Maslovsky, Moody's vice president, senior analyst and lead analyst for Maersk, said in a news release.

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