RAM Rating Services Bhd has reaffirmed the ratings of HUBLINE BHD []’s RM220 million debt notes but revised the outlook on the long-term ratings from stable to negative.
The debt notes involved the long- and short-term ratings of A2 and P1 for Hubline’s RM150 million Murabahah commercial papers/medium-term notes programme (2005/2012).
“The revision in outlook is premised on our concerns that the Group’s financial performance may remain depressed by weak freight rates (for both its container and dry-bulk shipping segments) and poor dry-bulk cargo volumes.
“Large incoming supply of newbuilds will further pressure freight rates which have yet to stage a meaningful recovery. At the same time, uncertainties in economic recoveries of advanced economies may further dampen market outlook,” said the ratings agency.
No comments:
Post a Comment