Moody’s rates Hapag-Lloyd notes Caa1

Moody's Investors Service said it assigned a provisional Caa1 rating to the proposed €250 million senior unsecured notes due 2019 issued by Hapag-Lloyd AG.

Hapag-Lloyd's corporate family rating of B2 and probability of default rating of B2-PD are unchanged.

The outlook is negative.

Proceeds will be used to partially refinance Hapag-Lloyd's existing €280 million senior unsecured notes due 2015. The company will first place the funds in escrow and release them once its transaction with Compañia Sud Americana de Vapores (CSAV) and the subsequent €370 million capital increase are completed, both expected to take place before year-end 2014.

In April 2014, Hapag-Lloyd announced the signing of a binding contract with the Chilean shipping company CSAV, whereby CSAV will contribute its container shipping activities to Hapag-Lloyd and in return receive a 30% shareholding in Hapag-Lloyd.

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