Business, Freight News, Sea

Fitch: China Decline May Slow US Container ABS

[ October 29, 2015   //   Gary G Burrows ]

The recent economic slowdown in China could have negative implications for container ABS transactions, Fitch Ratings says. Container utilization and lease rates in outstanding transactions could come under pressure if China’s manufacturing sector continues to decline and the country enters a long-term recessionary environment with slowed GDP growth.

Earlier this week, China’s GDP growth decreased to 6.9% in the third quarter, the first time reporting below 7% since 2009. The International Monetary Fund (IMF) also recently lowered global growth forecasts for 2015 from 3.3% to 3.1% as a direct result of China’s increasingly stagnant growth, highlighting the importance of China’s role in the global economy.

Tags: Container ABS, Fitch Ratings