Wan Hai's refocus on the intra-Asia market is likely to help the company to recover its profitability and cash flow faster than its long-haul peers. Wan Hai has adequate liquidity to meet debt repayments and its lease-adjusted debt may decline due to decreasing capital expenditures and charter hire expenses in 2009. We are affirming our 'BB+' long-term corporate credit rating on Wan Hai. The outlook remains negative. On May 26, 2009, Standard&Poor's Ratings Services affirmed its 'BB+' long-term corporate credit rating on Wan Hai Lines Ltd. and its 'BB' issue rating on the company's unsecured corporate bonds. The outlook remains negative. The rating affirmation reflects our expectation that Wan Hai's leading market position in the relatively stable intra-Asia
