The 'BBB-' corporate credit rating on Wan Hai Lines Ltd. was assigned on Jan. 20, 2003. At the same time Standard & Poor's Ratings Services assigned its 'BB+' issue rating on the company's US$143.75 million zero coupon convertible bond issue due 2008. The outlook on the credit rating is stable. The issue rating is lower than the corporate credit rating due to the amount of secured debt held by Wan Hai. To the extent that Wan Hai's secured creditors have a material priority claim on the company's assets, the unsecured bonds are rated lower. The ratings on Wan Hai reflect the company's leading market position in intra-Asia shipping routes, low cost position, and moderate financial profile. However, these strengths are
