S&P Maalot: negative outlook for Zim

S&P Maalot: negative outlook for Zim

The credit rating agency is known to be concerned about Zim ability to meet the liquidity requirements laid down by the banks.
01.10.12 / 00:00
S&P Maalot: negative outlook for Zim
01.10.12
S&P Maalot: negative outlook for Zim

The credit rating agency is known to be concerned about Zim ability to meet the liquidity requirements laid down by the banks.
 
S&P Maalot rating agency reiterated last week a low "B" investment rating for Zim Integrated Shipping Services Ltd. at the same time repeating a negative outlook.
 
The credit rating agency is known to be concerned about Zim ability to meet the liquidity requirements laid down by the banks.
 
Maalot analysts noted that the financial support from parent company The Israel Corporation mitigates concerns to a degree, but that support was necessary because Zim was in effective default.
 
The rating isn’t based on the strength of the parent company, which has a blue-chip "A+" rating and stable outlook, because further support is in doubt, says the agency.
 
On the upside, Maalot notes Zim's sheer size and diversification among clients and shipping lines; and its productions of positive EBITDA in the second quarter of 2012 after operating at a loss for two quarters.

 

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