HMM to meet with credit rating companies

Hyundai Merchant Marine (HMM) will hold a meeting with the local credit rating companies responsible for lowering the shipping company’s credit level to D, which means the company is in default.

“HMM has succeeded in extending the expiration dates for over 80.4 billion won [$69.4 million],” the company said in a statement Friday, “and we think we have overcome the ‘default’ status.”

The company’s credit rating fell after its failure to extend the expiration date for 120 billion won in corporate bonds on March through a meeting with individual bondholders.

But as it has been making progress with its restructuring process, it plans to visit each credit rating company and explain to them the future plans the company has for corporate normalization.

Thus far, the HMM has succeeded in lowering its charter rates by 21 percent and has managed to extend the due dates of all corporate debts through five rounds of meetings held in May.

These accomplishments are two of the three requirements needed in order for its creditors to grant the company a chance to avoid court receivership.

The company has no overdue rent and has fixed its liquidity problems by selling Hyundai Securities in May, according to the company.

“The current credit rating has been negatively affecting our businesses at home and abroad,” a company spokesman said. “We hope our recent accomplishments through restructuring could be reflected by the credit ratings.”

One major task left for the company is to join a global shipping alliance. It has been attempting to join THE Alliance, which another local shipping company, Hanjin Shipping, managed to join. But HMM has recently shifted its focus to joining the 2M alliance, which includes the world’s top two shippers, Maersk and MSC.

BY KIM JEE-HEE [kim.jeehee@joongang.co.kr]