Moody's cuts Wan Hai Lines to Ba3

Moody's Investors Service said it downgraded the corporate family rating of Wan Hai Lines Ltd. to Ba3 from Ba2, along with its unsecured bond rating to B1 from Ba3.

The outlook is stable.

The downgrades have been driven by Wan Hai's weak operating performance and financial profile, as reflected in the operating loss, negative operating cash flow and high leverage with net debt-to-EBITDAR of about 6.9x in the first half of 2009, Moody's said.

Wan Hai has fallen victim to the severe conditions in the liner markets, weak global economy, tight trade credit and the surplus supply of vessels, the agency said.

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