02 April 2009

Chile's Vapores Rating Cut to B- From BB- by S&P on Shipping Outlook

By Nathan Gill
April 2 (Bloomberg) -- Cia. Sudamericana de Vapores SA’s long-term credit rating was cut three levels by Standard & Poor’s, which cited the outlook in container shipping markets and the company’s “weak” liquidity.

S&P lowered Latin America’s largest container ship company’s credit rating to B- from BB-, according to a statement on the rating company’s newswire.

“Absent a significant restructuring of its business strategy, we expect CSAV to continue posting significant losses that would challenge its credit quality by further eroding its operational performance, its financial risk profile, and its liquidity position,” S&P said.