Maersk (MW): Moody’s has lifted the outlook on the Baa3 rating to Positive from Negative. This follows “very strong performance amidst the global pandemic by the container shipping industry, Maersk’s credit metrics have continued to strengthen during the first half of 2020. A continuation of the recent performance and credit metrics improvement trend could support further positive rating pressure over the next 12-18 months” according to Moody’s. According to Moody’s an upgrade to Baa2 will require gross debt to EBITDA below 3.0x at all points in the cycle. End-H1 20 this ratio was 2.7x – and with strong performance expected in H2 20 with container freight rates at multi-year high and a low capex level ratios are expected to continue to strengthen.
Danske Bank: Maersk: Moodys lifts outlook to Positive from Negative on Baa3 rating