First Ship Lease Trust 'CCC+' rating affirmed with negative outlook; rating then withdrawn at company's request
[SINGAPORE] Standard & Poor's Ratings Services today affirmed its 'CCC+' long-term corporate credit rating on Singapore-based First Ship Lease Trust (FSL) with a negative outlook. S&P also affirmed the 'axCCC+' long-term ASEAN regional scale rating on the company. S&P then withdrew the ratings at FSL's request.
The rating prior to its withdrawal reflected Standard & Poor's opinion on FSL's exposure to the volatility in the shipping industry, its weakened financial capacity, and uncertainty about the company's compliance with covenants. S&P believes that the outlook for the company is still heavily dependent on bank support, despite its recently stabilised performance. FSL's predictable cash flow generation from the long-term lease contracts somewhat mitigates the weakness, in S&P's view.
The above is a report from S&P.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Gold holds steady as investors focus on US Fed meeting
Singapore shares open in the red on Tuesday; STI down 0.3%
Huawei’s pivotal role in the US-China tech war, from 5G to chips
CDL Hospitality Trusts reports 6.8% higher Q1 net property income of S$34.9 million
Starhill Global Reit posts 0.9% lower Q3 net property income of S$37.7 million
Binance and CZ’s fortunes are set to grow, jail or no jail