Rating agency Standard and Poor's has downgraded French carrier CMA CGM as the container shipping industry continues to be hampered by the global economic crisis.
The group's note was lowered by one notch to BB+ from BBB-. Senior unsecured debt was downgraded two notches to BB-. The agency said its outlook for the carrier was stable but expected growth in container shipping to slow because of the deteriorating global economic environment, and the delivery of new capacity.
It also expects CMA CGM's operating margin to "deteriorate gradually" in the coming quarters. The carrier earlier warned that its 2008 results will fall below the previous year's performance.
The group's note was lowered by one notch to BB+ from BBB-. Senior unsecured debt was downgraded two notches to BB-. The agency said its outlook for the carrier was stable but expected growth in container shipping to slow because of the deteriorating global economic environment, and the delivery of new capacity.
It also expects CMA CGM's operating margin to "deteriorate gradually" in the coming quarters. The carrier earlier warned that its 2008 results will fall below the previous year's performance.