S&P may cut Pacific International

Standard & Poor's said that it placed its BBB long-term corporate credit rating on Pacific International Lines (Pte.) Ltd. on CreditWatch with negative implications.

This action reflects the company's revised investment plan, which entails higher cash outlays in the next two years and a potential increase in its overall borrowings, the agency said.

While the company's management supports the enhanced capital expansion for capturing emerging opportunities, S&P said it views a further increase in the company's debt level, in a softening container shipping market, as likely to weaken the company's credit protection measures

In resolving the CreditWatch, S&P said it will assess its revised investment and funding plans and other changes in the company's operational and investment strategies.

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