On April 8, 2004, Standard & Poor's Ratings Services affirmed its 'BBB-' corporate credit rating on Wan Hai Lines Ltd. (Wan Hai). At the same time, Standard & Poor's affirmed its 'BB+' issue rating on the company's US$143.75 million zero coupon convertible bond issue due 2008. The outlook on the long-term corporate credit rating is stable. The issue rating is one notch lower than the corporate credit rating due to the amount of secured debt held by Wan Hai, given that secured creditors have a material priority claim on the company's assets. The ratings on Wan Hai reflect the company's leading market position on intra-Asia container routes, its low cost base, and moderate financial profile. However, these strengths are offset
