The ratings on Wan Hai Lines Ltd. (Wan Hai) reflect the company's leading market position in intra-Asia container routes, its low cost base, and moderate financial profile. However, these strengths are offset by the cyclical nature of the container shipping industry and intense competition, which regularly results in downward pressure on freight rates. Wan Hai is the largest container shipping company in the fast-growing intra-Asia market. The company operated a fleet of 62 container vessels with an aggregate capacity of 87,098 twenty-foot-equivalent units in 28 trade lanes as at the end of 2003. Revenue from intra-Asia trade accounted for about 67% of Wan Hai's net operating revenue in 2003, with the balance coming from trans-Pacific and Middle East trade. Wan
