S&P: Credit Quality of SE Asian Owners Drops

Thursday, January 20, 2000
S&P: Credit Quality of SE Asian Owners Drops Standard & Poor's said the credit quality of shipping companies across Southeast Asia has suffered in the last two years, with most companies in the "weak to vulnerable" range, compared with "fair to weak" previously. "Earnings vulnerability and aggressive capital structures, characterized by modest and volatile cash flows and high debt levels, have strained the ability of many companies to meet financial obligations in a timely manner," shipping analyst Ee-Lin Tan said. Tan said underpinning the deterioration were limited geographic diversity and exposure to regional trade flows, intense price-based competition led by lower cargo traffic in certain trade routes and excess capacity within several shipping segments. She said the developments had caused freight rates to drop significantly and had heightened the risk of single-segment operations for many Southeast Asian shipping companies. Weakened earnings, rising operating costs, large foreign exchange losses as a result of the depreciation of regional currencies against the U.S. dollar, and a heavy reliance on debt to finance aggressive capital expenditure programs in the past have caused credit measures to worsen significantly, she said. SE Asian Shipping Companies Reviews by S&P Shipping company Overall credit profile Neptune Orient Lines Ltd. Weak Malaysia International Shipping Corp Fair Regional Container Lines Public Co. Weak Osprey Maritime Ltd. Weak Samudera Shipping Line Ltd. Fair William, Gothong & Aboitiz Inc. Weak Precious Shipping Public Co. Ltd. Vulnerable PT Berlian Laju Tanker Tbk. Vulnerable Thoresen Thai Agencies Public Co. Ltd. Vulnerable Negros Navigation Co. Inc. Weak

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Asia-N.Europe Box Rates Fall 8.1 pct

Freight rates for transporting containers from ports in Asia to Northern Europe fell 8.1 percent to $713 per 20-foot container (TEU) in the week ended on Friday,

Unipec: U.S. ANS Destined for Sinopec

Arbitrage opens after ANS discount widen on ample supplies. Unipec, the trading arm of top Asian refiner Sinopec, has bought two U.S. crude cargoes, including

G6 Updates Asia-North America West Coast Service

Two services will be merged into one until further notice / Reason is change in market demand / All other services remain unchanged. Members of the G6 Alliance

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Pipelines Port Authority Ship Electronics Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0633 sec (16 req/sec)