DGAP-News: Hapag-Lloyd AG
/ Key word(s): Rating
Hamburg, 5 October 2020 Standard & Poor's upgrades Hapag-Lloyd to 'BB-' with 'positive' outlook - Improved credit quality validated by resilient EBITDA, tight cost control and continuous debt reduction - Positive outlook indicates possible further rating upgrade within the next 12 months if current credit profile will be maintained - Issue rating on Hapag-Lloyd's senior unsecured debt raised to 'B' from 'B-' Rating Agency Standard & Poor's (S&P) has published an updated report on Hapag-Lloyd today. The credit rating was raised one notch from 'B+' to 'BB-' with a 'positive' outlook, which is the highest credit rating assigned to Hapag-Lloyd since the research initiation by S&P in 2010. Additionally, the senior unsecured bond rating was raised to 'B' from 'B-'. S&P argued, that it expects Hapag-Lloyd to continue its solid 2019 EBITDA performance in 2020. Positively mentioned was also that Hapag-Lloyd's strengthened cash flow generation, coupled with gradually reducing adjusted debt from free operating cash flow, will result in stronger than previously expected credit metrics in 2020. Furthermore, S&P recognised that Hapag-Lloyd has outperformed its cost-reduction targets, enhanced its operating efficiency, decreased cost per container shipped, and improved its profitability. As a result, Hapag-Lloyd has posted above-industry-average EBITDA margins over the past few years. The positive outlook reflects S&P's view that Hapag-Lloyd has the capacity to further reduce leverage and to increase credit quality. "We are very pleased that our earnings performance and our consistent cost management as well as our deleveraging efforts are positively recognized with this S&P rating action. Going forward, our prudent financial policy remains unchanged with a clear focus on profitability, cost control, debt reduction and balance sheet stability. At the same time we are focusing on the consequent implementation of our Strategy 2023," said Mark Frese, Chief Financial Officer of Hapag-Lloyd AG. About Hapag-Lloyd With a fleet of 239 modern container ships and a total transport capacity of 1.7 million TEU, Hapag-Lloyd is one of the world's leading liner shipping companies. The company has around 13,000 employees and 388 offices in 129 countries. Hapag-Lloyd has a container capacity of approximately 2.6 million TEU - including one of the largest and most modern fleets of reefer containers. A total of 121 liner services worldwide ensure fast and reliable connections between more than 600 ports on all the continents. Hapag-Lloyd is one of the leading operators in the Transatlantic, Middle East, Latin America and Intra-America trades. Disclaimer Contact: Heiko HoffmannSenior Director Investor Relations Hapag-Lloyd AG Ballindamm 25 20095 Hamburg Phone +49 40 3001-2896 Fax +49 40 3001-72896 Mobile +49 172 875-2126
05.10.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | Hapag-Lloyd AG |
Ballindamm 25 | |
20095 Hamburg | |
Germany | |
Phone: | +49 (0) 40 3001 - 2896 |
Fax: | +49 (0) 40 3001 - 72896 |
E-mail: | ir@hlag.com |
Internet: | www.hapag-lloyd.com |
ISIN: | DE000HLAG475 |
WKN: | HLAG47 |
Listed: | Regulated Market in Frankfurt (Prime Standard), Hamburg; Regulated Unofficial Market in Berlin, Dusseldorf, Hanover, Munich, Stuttgart, Tradegate Exchange |
EQS News ID: | 1138836 |
End of News | DGAP News Service |
|
1138836 05.10.2020
The information presented here has been provided by our content partner EQS-Group. The originator of the news is the respective issuer, the company relating to the news, a publication service provider (press or information agency) which uses the distribution service of EQS to transmit company news to shareholders, investors, investors or interested parties. The original publications and other company-relevant information can be found at eqs-news.com.
The information you can access does not constitute investment advice. The presentation of our cooperation partners, where the implementation of investment decisions would be possible depending on the individual risk profile, is solely at the discretion of the person using the service. We only present companies of which we are convinced that the range of services and customer service will satisfy discerning investors.
If you are considering leverage products, familiarise yourself with the typical characteristics of the financial instruments beforehand. Take the time to determine the risk content of the planned investment before making an investment decision. Bear in mind that a total loss cannot be ruled out with leverage products.
For newcomers to the subject, we offer various options in both the training and the tools section, through which you can train theoretical knowledge and practical experience and thus improve your skills. The offer ranges from participation in webinars to personal mentoring. The range is continuously being expanded.
1 Lab features are usually functionalities that emerge from the think tank of the investor community. In the early stages, these are experimental functionalities whose development process is largely determined by use and the resulting feedback from the community. When integrating external services or functionalities, the functionality can only be guaranteed to the extent that the individual process elements, such as interfaces, interact with each other.