Moody's alters Danaos view to positive

Moody's Investors Service said it changed the outlook on Danaos Corp. to positive from stable and affirmed its Ba3 corporate family rating, its Ba3-PD probability of default rating and its B1 senior unsecured rating.

"The outlook change to positive reflects continued credit metrics improvements driven by strong cash flow generation and conservative shareholder remuneration, enabling Danaos to further de-risk its balance sheet by taking down its total debt load to $500 million as of December 2022 from $1.3 billion in December 2021," said Daniel Harlid, a Moody's vice president, senior analyst and lead analyst for Danaos in a press release.

"While we expect currently weak market conditions for container shipping to start impacting Danaos negatively towards the end of 2023, a preservation of robust credit metrics through the cycle could support further positive rating pressure, " Harlid added.

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