On April 25, 2007, Standard&Poor's Ratings Services lowered its long-term corporate credit rating on Wan Hai Lines Ltd. (Wan Hai) to 'BBB-' from 'BBB'. The outlook is stable. At the same time, Standard&Poor's lowered its issue ratings on the company's unsecured overseas convertible bond and on the unsecured corporate bonds of its fully owned subsidiary, Wan Hai Lines (Singapore) Pte. Ltd., to 'BBB-' from 'BBB'. Wan Hai irrevocably and unconditionally guarantees the corporate bonds. The rating action reflects the increasing challenges that Wan Hai faces in the global container shipping industry that could exert pressure on key credit measures over the short to medium term. The company's operating cash flow dropped by 15% to Taiwan dollar
