“K” Line Issuer Rating Upgrades from BBB- to BBB

Kawasaki Kisen Kaisha, Ltd. (“K” Line) announces that the Rating and Investment Information, Inc. (R&I) has upgraded the Issuer Rating of the company from “BBB-” to “BBB”, effective from Jan 19, 2015. The rating on the Domestic Commercial Paper Programme remains unchanged, the company said in its press release.
Issuer Rating : BBB (Upgraded from BBB- )
Rating Outlook : Stable
Commercial Paper Rating : a-2 (Affirmed)
R&I cited the following major reasons for the upgrade:
 Reforming cost structure in the container ship business helps to reduce concern over a possible huge loss.
 The car carrier business has become a source of earnings thanks to high transportation quality and strong relationship with customers.
 The dry bulk business with medium-long term contracts and the LNG business with high entry barriers are generating solid profit.
 Its equity capital is rising and the balance between debt and cash flow is also improving.