First Ship Lease Trust 'CCC+' rating affirmed with negative outlook; rating then withdrawn at company's request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.