Wan Hai's "fair" business risk profile reflects the company's good position in the intra-Asia container shipping market, stronger operating efficiency and more stable profitability than its long-haul peers'. The company's "intermediate" financial risk profile reflects the company's low debt leverage and positive free cash flow as a result of Wan Hai's cautious strategy on capacity expansion. We are affirming our 'BB+' long-term corporate rating, 'cnBBB+' long-term Greater China regional scale rating, and the 'BB' issue rating on the senior unsecured bonds that Wan Hai guarantees for its Singapore-based subsidiary. The stable outlook reflects our expectation that Wan Hai's good market position in the Intra-Asia market and its cautious strategy on capital spending will enable the company to generate stable profitability
