Taiwan-based container shipper Wan Hai Lines Ltd. provides services in intra-Asia, transpacific, and the Middle East. Elevated freight rates led by still-constrained container ship capacity could keep Wan Hai's profitability much stronger than our previous forecast for 2022-2023. Wan Hai's strong operating cash flow, high cash balance, and flexible dividend policy could enable the company to maintain a sufficient financial buffer to fund its aggressive capital expenditure plans while remaining debt free on an adjusted basis over the next two years. On April 26, 2022, S&P Global Ratings affirmed our 'BB+' long-term issuer credit rating on Wan Hai. The stable outlook reflects our view that Wan Hai's strong profitability could enable the company to maintain positive discretionary cash flow and
