Moody's cuts Wan Hai Lines view to negative

Moody's Investors Service said it has revised to negative from stable the outlook for Wan Hai Lines Ltd.'s issuer rating and bond rating. At the same time, its Baa2 rating is affirmed.

The revision follows Wan Hai's announcement of full-year results for the fiscal year ended Dec. 31.

Moody's affirmed the Baa2 rating on the strengths of the company's high liquidity, which provides a solid buffer as it goes through its fleet expansion and its strong market position, which includes a 20% share of the growing intra-Asia ocean trade.

These strengths, in Moody's opinion, offset the weakness apparent in the company's operating and financial profile when compared to other investment-grade shipping lines.

A ratings upgrade in the next 12 to 18 months is unlikely. However, the outlook may change to stable if Wan Hai can improve and stabilize earnings in its long haul trades and lower fuel costs to enhance its financial metrics, the agency said.

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