Moody's Investors Service downgraded its rating for the senior notes of Enterprises Shipholding Corp. to B2 from Ba3. The downgrade reflects Moody's expectation that the pressure on freight rates will continue to build beyond the normal level of seasonality, especially in the light of substantial excess capacities in the reefer industry. In addition, management faces the challenge of allocating operating cash flow and balance sheet liquidity between operating requirements, debt service and advance/progress payments for newbuilts. Furthermore, the current market value of the underlying assets is unlikely to recover to a level that provides meaningful asset collateral for the rated debt in the near term.