One of the world's leading providers of independent credit ratings, Standard and Poor's (S&P), has upgraded the credit ratings of "K" Lines' bonds, citing the fact that the major Japanese shipping company has enjoyed improved cash flow stability of late.

In a statement, "K" Line announced that S&P has upgraded its long-term corporate credit from BBB- (Stable) to BBB (Stable). At the same time, the shipping company's senior unsecured bond ratings have been upgraded from BBB- to BBB. Both changes came into effect on August 27.

According to S&P, the shipping company's cash flow stability has improved and so too has its resilience to weather adverse market conditions. In addition, financial resilience to deterioration in business conditions has been strengthened by the increased accumulation of retained earnings, backed by strong business performance.

Furthermore, the ratings agency said "K" Line was steadily enhancing its ability to handle market fluctuations through its efforts to further strengthen cost competitiveness."