Moody’s: Teekay Corporation’s Outlook Raised to Stable

Moody’s rating agency has upgraded the ratings outlook for Bermuda-based shipping company Teekay Corporation from under review to stable.

The ratings agency also confirmed the ratings of Teekay Corporation’s Corporate Family Rating (“CFR”) at B3 and senior unsecured debt rating at Caa1.

Furthermore, Moody’s upgraded the Speculative Grade Liquidity rating to SGL-3 (adequate), from SGL-4 (weak).

The changes are related to the company’s adequate liquidity, following the execution of refinancing initiatives as of June 29, 2016.

The refinancing resolved the 2016 refinancing risks of some USD 250 million and improved the company’s liquidity position over the near term, via increased access to its equity margin revolver due 2018 and a USD 100 million equity raise, the ratings agency said.

Moody’s anticipates that continued weakness in the underlying energy markets will likely lead to profit margin pressures and continue to weigh on the MLPs’ ability to upstream cash to the parent amidst reducing revolvers, project funding needs and liquidity requirements.

The stable outlook reflects Moody’s expectation that, although end markets will remain weak over the intermediate term, Teekay will maintain adequate liquidity over the next year to cover its G&A expenses and debt obligations.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Sep 2019 >>
MTWTFSS
26 27 28 29 30 31 1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30 1 2 3 4 5 6

Defence Safety Conference 2019

The Defence Safety Conference returns to London this October as the only event solely dedicated to enhancing safety across all aspects of defence.

read more >

Shipping Transformation Asia

Shipping Transformation Asia will provide a platform for future-focused discussion in the shipping,…

read more >

3rd MarSat Workshop

The MARSAT project wants to operationalise and standardise EO products and aims to develop…

read more >

Global Sustainable Shipping Forum 2019

The event will provide valuable insights from conference sessions, great networking opportunities and will offer…

read more >