Moody's rates Wan Hai notes Baa2

Moody's Investors Service said it assigned a provisional Baa2 rating to the proposed $300 million to $400 million 10-year senior unsecured bonds to be issued by Wan Hai Lines Pte Ltd.

The outlook is stable.

The ratings reflect the group's very well-established position, strong market share and track record in the container trade business and its stable revenue generation, a result of relatively stable freight rates and its long relationship with a diversified customer base, the agency said, adding Wan Hai's good financial flexibility and liquidity.

Moody's, though, also said it considers the cyclical shipping market, the group's gradual shift into long-haul trade lines that will increase cash flow volatility and its significant capex program, which will increase borrowings.

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