Hyundai Merchant Marine (HMM) has seen its credit ratings take more of a hammering despite the sell-off on Friday of its dry bulk division. Local agency Korea Ratings downgraded the under pressure line to B- in its latest report.
HMM, which has laboured under debt-to-equity ratios in excess of 700% in recent months, signed a contract on Friday to sell its dry bulk division to H-Line Shipping, a firm controlled by Korean private equity firm Hahn & Co in a deal reportedly worth KRW120bn ($100m) with H-Line also assuming debts of around KRW420bn.
HMM’s 12 bulkers help make Hahn a growing force in dry bulk. In 2013, the private equity firm bought out Hanjin Shipping’s dry bulk division too.
HMM, with debts of more than $5bn, has pressing bonds to repay later this year and further sell offs, including its terminal in Pusan are likely. Singapore terminal operator PSA has been linked with the terminal buy, but officials for the port company have declined to confirm the deal.
HMM revealed on Friday a net loss of KRW443.4bn for last year with local analysts suggesting the line is on course to remain in the red for 2016.
