DGAP-News: Hapag-Lloyd AG / Key word(s): Rating
Hamburg, 18 February 2019
Moody's upgrades Hapag-Lloyd credit rating to B1
The rating upgrade reflects Hapag-Lloyd's ability to achieve the level of expected synergies resulting from the UASC integration which helped to partially offset cost increases on the back of higher fuel costs. Hapag-Lloyd has substantially reduced leverage since the merger with UASC and is expected to continue its deleveraging path. Moody's also factors in an adequate liquidity as well as a positive free cash flow generation since 2017 and Hapag-Lloyd's capabilities to remain cash generative going forward, which will help to further reduce debt. Furthermore, Hapag-Lloyd's modern and efficient fleet has allowed to reduce operating expenses per TEU despite increasing fuel costs. The stable outlook reflects Moody's expectations of steady performance as a result of Hapag-Lloyd's strong market position despite possible cost increases combined with a volatile freight rate environment.
"We are very pleased that the great dedication and effort of our team implementing our business plan is positively recognized in Moody's upgraded B1 rating and stable outlook for Hapag-Lloyd. Going forward, a consistent cost management and deleveraging effort will remain important goals of our financial agenda as we further progress in the implementation of our Strategy 2023", said Nicolás Burr, Chief Financial Officer of Hapag-Lloyd.
Senior Director Investor Relations
Phone +49 40 3001-2896
Fax +49 40 3001-72896
Mobile +49 172 875-2126
18.02.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Phone:||+49 (0) 40 3001 - 2896|
|Fax:||+49 (0) 40 3001 - 72896|
|Listed:||Regulated Market in Frankfurt (Prime Standard), Hamburg; Regulated Unofficial Market in Berlin, Dusseldorf, Hanover, Munich, Stuttgart, Tradegate Exchange|
|End of News||DGAP News Service|