Research Update: Wan Hai Lines Ltd. Rating Affirmed At 'BB+'; Liquidity Revised To Exceptional From Strong; Outlook Stable

We believe Wan Hai Lines Ltd.'s liquidity buffer has strengthened, supported by abundant cash on hand, less maturing debt, lower capex, and a smaller dividend payout over the next two years. We have therefore revised our liquidity assessment for Wan Hai to exceptional from strong. On April 26, 2024, we affirmed our 'BB+' long-term issuer credit rating on the Taiwan-based shipping company. The stable rating outlook reflects our view that Wan Hai will maintain a net cash position over the next two years amid moderating capex needs. In addition, we see Wan Hai's profitability improving in 2024 on higher freight rates amid constrained containership supply during the ongoing Red Sea crisis. Tempering the company's competitive strengths are high industry risk

...To From Issuer Credit Rating ##+/Stable/-- ##+/Stable/-- Business risk Weak Weak Country risk Intermediate Intermediate Industry risk High High Competitive position Fair Fair Financial risk Modest Modest Cash flow/Leverage Modest Modest Anchor ##+ ##+ Modifiers Diversification/Portfolio effect Neutral (no impact) Neutral (no impact) Capital structure Neutral (no impact) Neutral (no impact) Financial policy Neutral (no impact) Neutral (no impact) Liquidity Exceptional (no impact) Strong (no impact) Management and governance Neutral (no impact) Neutral (no impact) Comparable ratings analysis Neutral (no impact) Neutral (no impact) Stand-alone credit profile (SACP) ##+ ##+...

Research Update