Challenging markets and the current economic conditions across the leading shipping sectors have led ratings agency Moody's to downgrade the outlook of two leading Japanese shipping groups.
Moody's dropped the outlook rating of NYK and MOL down to 'negative' from 'stable', although it noted that there was no change in the group's actual ratings, which stand at Baa1 for NYK and A3 for MOL.
According to the agency, alterations to the ratings reflects concern that it will take time for the groups to improve profitability in a weak market, with oversupply from freight capacity being taken into account.
Long-term contract business and stable non-shipping operations would lead to solid profits overall, Moody's said, but positive factors were not enough to offset the negative ones.
