The ratings on Wan Hai Lines Ltd. reflect the company's strong market position in intra-Asia container routes, its good operating efficiency, and intermediate financial risk profile. Counterbalancing factors include the highly cyclical nature of the container shipping industry, as well as the company's increasing exposure to volatile long-haul routes and its aggressive fleet expansion. Wan Hai's stable performance on intra-Asia routes, together with strong demand on Middle Eastern and European routes, helped improve its EBITDA margin in 2007. The carrier's EBITDA rose by 53% to Taiwan dollar (NT$) 10.6 billion in 2007. Its cash and liquid financial assets declined by NT$5.47 billion due to high capital expenditures of NT$19.8 billion in 2007. As a result, Wan Hai's adjusted ratio of
