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ICR upgrades CSAV credit and bonds rating

The improvement in the Company’s rating from BBB/Stable to BBB+/Stable is due mainly to a strong operating performance from Hapag-Lloyd, where CSAV has a 30% stake.


Santiago, December 17, 2020. Risk rating agency ICR upgraded the credit and bond rating for Compañía Sud Americana de Vapores (CSAV) from BBB/Stable to BBB+/Stable, due to continued operating improvements from Hapag-Lloyd, the world’s fifth largest shipping line, 30% of which is owned by CSAV.

ICR points out that, even in such a highly challenging year for the industry, Hapag-Lloyd’s operations continued to evolve favorably, reporting 20.4% growth in EBITDA as of the third quarter of 2020, and enabling it to further deleverage. Furthermore, the German shipping line improved once again in December its budgeted figures for this year, with EBITDA between 2,600 and 2,700 million euros.

The risk rating agency stated that this development would positively impact the flow of dividends received by CSAV, which are forecast to be sounder and more stable in the long term and, “considering that the US$ 350 million capital increase would let the company recover low indebtedness levels, we upgraded its rating.”

Óscar Hasbún, CEO of CSAV, welcomed the change in rating, “which reaffirms the Company’s sound position as an attractive vehicle for investing in the German shipping company. Despite the challenges posed by the public health contingency, Hapag-Lloyd remains one of the most efficient shipping lines in the industry, ratifying our long-term commitment and our trust in their financial stability.”

As for the shipping industry, ICR confirmed that it is in a better position now than during the subprime crisis thanks to stronger supply since the sector rationalized growth after the prior crisis.