S&P says CMA CGM is in a weak liquidity position
American financial services company Standard & Poor's (S&P) has said French container line CMA CGM S.A. is in a "weak liquidity position" in a statement Wednesday, Ship & Bunker reports.
S&P said they believe that CMA CGM's liquidity position will likely remain under strain over the coming months, owing to delays in corrective actions, such as amendments to the company's debt amortization profile and major asset disposals.
"Furthermore, we understand that there is a delay in receiving $250 million of cash proceeds from the issuance of redeemable bonds to Turkey-based holding company Yildirim Group (completed in January 2012). We consider these delays to have generated increased uncertainty over CMA CGM's ability to execute a restructuring plan, and the format this would take, before it finds itself in a financially distressed position," the statement said.
S&P said CMA CGM's status will remain on "CreditWatch" where Standard & Poor's Ratings Services placed them with negative implications on June 14, 2012.