The president of Japanese shipping giant Mitsui OSK Lines (MOL), Akimitsu Ashida, has announced that the Japan Credit Rating Agency (JCR) has upgraded the company's long-term preferred debt rating from A+ (positive) to AA- (stable) effective November 27.
MOL had accumulated mid- and long-term contracts mainly for iron ore carriers while the dry bulker market is strong, said a statement issued by Shinji Ogawa, general manager of MOL's financial planning and accounting division.
The company said in its statement that it is also benefiting from the soaring market through spot contracts. Considering demand and supply trends in the dry bulker market, concerns over a significant drop in the market level are small and high-level earnings are expected in the foreseeable future, said the JCR, according to the MOL statement.
MOL also cited the agency as saying that the shipping company's financial structure has been improved by an enhanced capability to generate cash flow, though it continues to make large investments in fleet expansion to meet an active cargo trade.
MOL's ability to generate stable cash flow has improved, it said. So JCR forecast that the company is be able to maintain cash flow at an appropriate level in the event the business climate deteriorates.
|
