A.P. Moeller-Maersk A/S’s bond yields dropped in Copenhagen trading after Denmark’s biggest company hired Moody’s Investors Service and Standard & Poor’s to provide credit grades on its debt.
Maersk’s 500 million-euro ($675 million) 4.375 percent bond due 2017 yielded 1.73 percent at 10:32 a.m. local time, the lowest since at least December 2010, down from 1.92 percent yesterday, according data compiled by Bloomberg.
Maersk, which has issued nine bonds since 2009, said yesterday it decided to seek credit grades to cut funding costs and gain access to the dollar debt market. In separate statements, Moody’s said it assigned the company’s debt a Baa1 rating, while S&P gave Maersk’s bonds a similar BBB+ grade. Both ratings carry stable outlooks.
“We think this is a natural step in the development of our funding strategy,” Chief Financial Officer Trond Westlie, said at an investor presentation in Copenhagen today. The company doesn’t have any “immediate” need to issue a new bond he said.