The global provider of benchmarks and investible indices, Standard & Poor’s (S&P) has affirmed the ‘BBB+’ Issuer Credit Rating on Danish Ship Finance and revised the outlook to ‘Stable’ from ’Negative’.
" We are revising our outlook on Danmarks Skibskredit to stable from negative and affirming the 'BBB+/A-2' issuer credit ratings," it said.
S&P justifies the revision with the company’s reduction in nonperforming exposures and robust capitalization and liquidity, which would reduce potential repercussions from the shipping sector’s cyclicality.
"Danmarks Skibskredit has reduced its nonperforming exposure, and we expect its asset quality to remain stable amid the slowing global economy and trade tensions, which are likely to put pressure on segments of the shipping industry," it added.
As the Issuer Credit Rating is the starting point for the Covered Bond Rating, DSF expects S&P to shortly affirm their ‘A’ rating of Danish Ship Finance’s listed bonds and to similarly revise the outlook to ‘Stable’ from ‘Negative’.