Moody’s cuts A.P. Moller - Maersk

Moody's Investors Service said it downgraded the issuer rating and senior unsecured rating of A.P. Moller - Maersk A/S to Baa3 from Baa2.

The outlook is stable.

The action concludes the review of Maersk's ratings initiated in August 2017.

“The downgrade reflects our expectation that Maersk will face increased market and execution risks and, as a result, operate at a higher leverage than is commensurate with a Baa2 rating for a company in such a volatile and cyclical business as container shipping,” Maria Maslovsky, Moody's vice president, senior analyst and the lead analyst for Maersk, said in a news release.

“However, we acknowledge Maersk's leadership position as a liner and container terminal operator, as well as its strategy to integrate vertically into the logistics business and offer superior value to its customers.”

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