Ratings agency Moody’s Investors Service has upgraded V.Group’s credit rating as it makes “strong” progress on profitability.
Improved liquidity was also a factor in increasing the rating to B3 to Caa1, with a stable outlook.
The agency said 2022 saw better revenue and earnings, as well as a strategic decision to focus on providing its range of services to the existing customer base, as opposed to “singularly focusing on increasing the number of vessels under management.”
The upgrade followed an earlier one by Standard & Poor’s, which rated the group at B-, up from CCC+, in July 2022.
Chief executive Rene Kofod-Olsen said: “I am delighted that our progress has been recognised by a leading rating agency. The upgrade is positive news for all our stakeholders and reflects the positive progress we’re making.”
“The news is testament to the efforts of our people and teams across our business and the successful execution of our strategy. As a forward-thinking global business, we have a clear vision and ambitious plans for growth,” he added.
In December, the boss told TradeWinds that technical management of ships is becoming increasingly complex as the industry faces growing pressure to digitalise operations and decarbonise.
The investments required for digital platforms both ashore and aboard ship handling everything from procurement to emissions monitoring are staggering, he added. And crews will require intense training to work with these systems and the increasingly complex engines and fuel systems.
Kofod-Olsen believes that as shipping moves along its decarbonisation journey, the technical management of vessels will become one of the industry’s biggest challenges in the future.
He predicts that an increasing number of shipowners will turn to third-party ship managers who have invested in the resources required.
“Complexity, decarbonisation, the crewing challenge and ensuring that you can continue attracting crew and educate them, and all of it at scale,” the CEO said.
