January 20, 2015
Kawasaki Kisen Kaisha, Ltd.
“K” Line Issuer Rating Upgrades from BBB- to BBB
Kawasaki Kisen Kaisha, Ltd. (“K” Line) announces that the Rating and Investment Information, Inc. (R&I) has upgraded the Issuer Rating of the company from “BBB-” to “BBB”, effective from Jan 19, 2015. The rating on the Domestic Commercial Paper Programme remains unchanged.
Issuer Rating : BBB (Upgraded from BBB- )
Rating Outlook : Stable
Commercial Paper Rating : a-2 (Affirmed)
R&I cited the following major reasons for the upgrade:
- Reforming cost structure in the container ship business helps to reduce concern over a possible huge loss.
- The car carrier business has become a source of earnings thanks to high transportation quality and strong relationship with customers.
- The dry bulk business with medium-long term contracts and the LNG business with high entry barriers are generating solid profit.
- Its equity capital is rising and the balance between debt and cash flow is also improving.