News / S&P takes Hapag-Lloyd off its watch list, but remains concerned

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Rating agency Standard & Poor’s has taken Hapag-Lloyd off its ‘CreditWatch’ listing.

It has been listed since 26 April, ahead of the completion of its merger with UASC, and S&P warned that the carrier’s profitability “remains vulnerable”.

The agency has re-confirmed Hapag-Lloyd’s pre-UASC corporate credit rating of B+ ‘Outlook Negative’, but remains concerned that the newly merged carrier’s credit measures could be weakened by another rate war.

S&P said: “The negative outlook reflects a one-in-three likelihood that the most recent uptick in freight rates will not hold.”

The merger ...