Wan Hai's profitability has shown signs of recovery over the past few quarters. We expect low capital expenditures and improving cash flow to lower Wan Hai's debt and improve its leverage over the next three to four quarters. We revised the outlook on the long-term corporate credit rating to stable from negative. We affirmed the 'BB+' long-term corporate credit rating and the 'BB' issue rating on the unsecured bonds issued by Wan Hai's Singapore-based subsidiary. On June 1, 2010, Standard&Poor's Ratings Services revised its outlook on the 'BB+' long-term corporate credit rating on Taiwan-based Wan Hai Lines Ltd. to stable from negative and affirmed the rating. At the same time, the rating agency affirmed its 'BB' issue rating
