RATINGS agency Standard & Poor's (S&P) has downgraded the world's third largest carrier CMA CGM's debt to B- from B+ due to worries about deteriorating liquidity.

The ratings were also put on Credit/Watch Negative. Standard & Poor also reduced its issue ratings on CMA CGM's debt to CCC from B-.

"We believe CMA CGM's liquidity position will be increasingly constrained in the coming quarters if it cannot bolster its liquidity sources through asset disposals or amendments to its debt maturity profile," the rating agency said.

"CMA CGM reported significantly lower operating profits in 2011 than we had anticipated, owing to depressed freight rates and elevated operating costs," it said.

CMA CGM posted a net loss of US$30 million last year compared to a profit of $1.6 billion in 2010. To strengthen its liquidity, the Marseilles-based carrier has discussed with its bankers for the rearrangement of its 2012 and 2013 debts, which is expected to be settled by the end of June.