S&P cuts Pacific International Lines to BBB-

Standard & Poor's said it lowered its corporate credit rating on Pacific International Lines (Pte.) Ltd. to BBB- from BBB. The rating is removed from CreditWatch, where it was placed with negative implications on May 28.

The outlook is stable.

The downgrade factors in the company's revised investment plan of an additional $850 million, from the existing $780 million capital expenditure plan and a potential increase in its overall borrowings, S&P said.

The stable outlook is supported by the company's competitive position in key routes and relatively diverse market coverage. These factors are expected to partially offset the group's increasing financial leverage and higher competition in traditional routes, the agency said.

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