S&P downgrades CEVA Logistics

S&P said it lowered the issuer credit rating on CEVA Logistics AG to B+ from BB- and removed the ratings from CreditWatch negative, where they were placed in February.

The agency also said it lowered the issue credit ratings on CEVA's debt to B+ from BB-.

CMA CGM SA has completed its public tender offer to acquire CEVA Logistics, S&P explained.

CMA CGM now owns 97.89% of CEVA's outstanding shares.

CEVA's overall credit quality is now assessed within the context of the combined creditworthiness of CMA CGM and CEVA, the agency said, and CEVA's status within the enlarged group.

CEVA is viewed as a core entity in the group, so the ratings are equalized with CMA CGM, S&P said.

The ratings are constrained by combined group's high financial leverage with an expected adjusted debt-to-EBITDA ratio of 5x to 5.2x at transaction close, the agency said.

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