Kroll Bond Rating Agency Publishes Container Shipping Commentary

NEW YORK--(BUSINESS WIRE)-- Kroll Bond Rating Agency (KBRA) today published a comment on the conditions in the shipping industry titled “Between Scylla and Charybdis: Shipping Looks for Safe Harbors Amidst the Storms.”

The bankruptcy of Hanjin Shipping Co. Ltd., the 7th largest liner company, is the most recent example of deepening distress within the industry. Other clear signs of distress include Maersk, the largest liner company, swinging from a profit to a loss in the first half of 2016 from a year ago and the rapid redrawing of shipping alliances. Overcapacity in the industry has been exacerbated by the continued addition of ever-larger ships in the face of weak trade volume growth, and has put many marginal companies at risk of financial distress. Unless and until industry participants begin demonstrating real discipline in new vessel ordering and/or there is an unexpected turnaround in global economic demand, KBRA expects to see continued stress in the sector. Due to distress in the shipping sector, as exemplified by the Hanjin bankruptcy, KBRA is closely monitoring our ratings in the shipping and container-leasing sectors.

To read the report, please click here.

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

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Analytical:
Kroll Bond Rating Agency
Kenneth Weinstein, 646-731-2384
Senior Director
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Anthony Nocera, 646-731-2350
Managing Director
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Source: Kroll Bond Rating Agency

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