S&P: Wan Hai view to negative

Standard & Poor’s said it revised the outlook on Wan Hai Lines Ltd. to negative from stable and affirmed the company’s BB+ long-term corporate credit rating.

The agency also said it lowered the long-term Greater China regional scale rating on the company to cnBBB from cnBBB+.

The outlook revision reflects the material likelihood that a prolonged industry downturn and rising competition from long-haul peers in the intra-Asia and Middle East trade routes could substantially weaken Wan Hai’s competitive position and profitability in its key markets, S&P explained.

The agency also said it expects slower economic growth in China and slack demand in Europe to strain demand growth on Wan Hai’s key trade routes.

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