Wan Hai's profitability, measured by return on capital, is likely to stay materially below 10% over the next 12 months due to low freight rates amid chronic oversupply and stalled demand growth in the container shipping industry. We are revising the rating outlook on the company to negative from stable to reflect the material risk that the carrier may not be able to improve its weakened profitability over the next one to two years. We are also revising our assessment of Wan Hai's business risk profile to weak from fair compared to global obligors. We are affirming our 'BB+' long-term corporate credit rating on Wan Hai. At the same time, we are lowering our long-term Greater China regional scale rating
