S&P Global Ratings has raised Seaspan's credit rating to BB from BB- citing improved profitability and scale, reports S&P Global.

The upgrade also applies to Seaspan's unsecured notes due 2029, lifted to BB from BB-, with recovery rating revised to 3 from 4. The outlook is stable, with adjusted funds from operations to debt expected to remain above 12 per cent.

Seaspan, the world's largest independent containership lessor, has expanded its fleet 40-45 per cent since 2021 to 182 vessels, boosting TEU capacity 75-80 per cent to 1.9 million. Adjusted EBITDA rose more than 50 per cent to US$1.8 billion in 2024, while return on capital improved to nearly 10 per cent.

The company has maintained EBITDA margins of 75-80 per cent for nearly a decade despite volatile freight markets. Its earnings far exceed peers Danaos, Navios Maritime Partners and Global Ship Lease, underscoring a stronger business risk profile.

Seaspan's cash flow has strengthened, with adjusted FFO to debt at just over 14 per cent by mid-2025. Positive free operating cash flow of $350-400 million is projected for 2025 and 2026, though debt-funded newbuilds may pressure credit measures in 2027-2028.

Long-term fixed-rate charters with major liners underpin stability, with contracted cash flow of about $31 billion and utilisation near 99 per cent. Seaspan's fleet, averaging seven years in age, represents 16 per cent of global leased containership capacity, with most vessels above 10,000 TEU.