Moody's may downgrade Maersk

Moody's Investors Service said it placed on review for downgrade the Baa2 issuer rating and senior unsecured rating of A.P. Moller - Maersk A/S.

Moody's also placed on review for downgrade Maersk's senior unsecured medium-term note program's (P)Baa2 rating.

This rating action follows Maersk's announcement that it agreed to dispose of its Maersk Oil division to Total SA (Aa3 stable) for an enterprise value of $7.45 billion. Maersk is to receive $2.5 billion in cash, which will be used by Maersk to repay debt, and $4.95 billion in stock.

“We have placed Maersk's ratings on review for downgrade due to significant uncertainty regarding how much, if any, of its outstanding debt it will repay using the value of the Total SA shares,” said Maria Maslovsky, Moody's vice president - senior analyst and the lead analyst for Maersk, in a news release.

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