Transport and logistics major DSV Panalpina receives one of the highest credit ratings from Moody's. The rating "strengthens DSV's financing platform," says CFO.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of DSV Panalpina A/S and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 19 July 2021 in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.
Key rating considerations are summarized below.
DSV Panalpina A/S's (DSV) Long Term Rating of A3 reflects its leading positions in the global freight forwarding industry and its stable and industry-leading levels of profitability through the cycle. Furthermore, the issuer has a history of a successful acquisitive growth strategy with a track record of executing and integrating large and transformational acquisitions, partially funded with equity.
The rating is constrained by a somewhat elevated leverage at the A3 rating level and shareholder-friendly financial policy, although mitigated by its commitment to adhere to internal net leverage targets, coupled with solid cash flow generation given the profitability of the business.
This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was Surface Transportation and Logistics published in May 2019. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This announcement applies only to EU rated, UK rated, EU endorsed and UK endorsed ratings. Non EU rated, non UK rated, non EU endorsed and non UK endorsed ratings may be referenced above to the extent necessary, if they are part of the same analytical unit.
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