Moody's rates CP Ships converts B1

Moody's Investors Service said it assigned a prospective B1 rating to CP Ships Ltd.'s new $175 million convertible senior subordinated notes due 2024 and has changed the outlook to positive from stable for all ratings of CP Ships.

Ratings affected by the change in outlook include the company's Ba2 senior implied rating and the Ba3 rating on the $200 million 10 3/8% senior notes.

Moody's said the senior implied rating continues to reflect CP Ships' exposure to the cyclical and highly competitive container shipping industry and the company's leveraged capital structure (notably on a lease adjusted basis). Given the current strong container market conditions, Moody's said it expects CP Ships will continue to apply free cash to reduce existing debt.

Moody's has factored the likelihood that CP Ships will continue to strengthen its portfolio of businesses by selected acquisition, which are expected similar in size and nature to previous transactions and financed mainly through internally generated cash flow. Moody's has not factored any sizeable debt funded acquisitions into its current ratings.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.