CSAV's S&P outlook upgraded from negative to stable

STANDARD & POOR's (S&P) has maintained its B- rating on Chilean shipping company Compania Sud Americana de Vapores SA (CSAV). However, but revised its outlook from negative to stable.

The revision came as CSAV reported a record monthly lifting volume of 223,500 TEU in May, up 77 per cent compared to the previous year. Average rates also increased by 21 per cent, returning almost to 2008 levels.

The move is the first positive rating revision for CSAV since November 2008 when the company's credit rating was downgraded from BB+, reported Alphaliner.

It said that according to S&P there are signs of recovery in the container shipping industry, with higher volumes and freight rates, diminishing idle capacity and lower order book levels.

In addition, CSAV's operating performance in the first quarter 2010 represented a substantial recovery and its financial flexibility has improved substantially. S&P maintains that CSAV will benefit from lower charter rates and relatively good trade flows on its core routes.
(Source:www.schednet.com)