TRIS Rating Co., Ltd. announces a confirmation to the company rating of Regional Container Lines PLC (RCL) at “BBB+” and the rating of RCL’s senior debentures at “BBB” with “stable” outlook. The ratings reflect RCL’s capable and experienced management team and its strong market position among regional feeders, resulting from fleet size, frequency of service, and the young age of fleet.
However, the ratings are offset by RCL’s financial profile which is weaker than expectation. Unfavorable operating factors included the bunker price volatility, sluggish demand for containerized shipping due to the global economic slowdown, and the excess supply of vessels which will negatively impact the freight rate.
The “stable” outlook is based on TRIS Rating’s expectation that RCL will be able to sustain its strong market position and improve profitability. The company is also expected to achieve its cost saving plan and manage bunker cost prudently. -- End
Company Rating: Affirmed at BBB+ Issue Rating: RCL096A: Bt2,500 million senior debentures due 2009 Affirmed at BBB Rating Outlook: Stable
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