Strong market position in intra-Asia container routes Good operating efficiency Intermediate financial risk profile Highly cyclical nature of the container shipping industry Increasing exposure to volatile long-haul routes Aggressive fleet expansion The rating on Wan Hai Lines Ltd. (Wan Hai) reflects 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 aggressive fleet expansion. Wan Hai's key credit measures are likely to face pressure over the short to medium term due to increasing challenges in the global container shipping industry. The company's operating cash flow dropped by 15%
