Container lines Yang Ming Marine Transport Corp has its long-term corporate rating downgraded amid concerns over slowing demand, Seatrade Asia online reports. Taiwan Ratings on Wednesday downgraded the Taipei-listed shipping firm's rating to 'twBBB' from 'twBBB '.
“The downgrade reflects our view that worsening market conditions are likely to cause Yang Ming's profitability and cash flow to be substantially weaker than our earlier prediction,” the rating agency said in a statement.
The weakening profitability could affect Yang Ming's bottomline over the next two to three quarters, Taiwan Ratings added.
Taiwan Ratings, however, said Yang Ming's long-term rating outlook will be stable.
In the first-half of this year, Yang Ming suffered a net loss of NT$2.55bn ($84.2m) as against a net profit of NT$2.76bn a year ago.
“The downgrade reflects our view that worsening market conditions are likely to cause Yang Ming's profitability and cash flow to be substantially weaker than our earlier prediction,” the rating agency said in a statement.
The weakening profitability could affect Yang Ming's bottomline over the next two to three quarters, Taiwan Ratings added.
Taiwan Ratings, however, said Yang Ming's long-term rating outlook will be stable.
In the first-half of this year, Yang Ming suffered a net loss of NT$2.55bn ($84.2m) as against a net profit of NT$2.76bn a year ago.