Cosco's big foreign client to delay payments?
Cosco susceptible for credit risk as other customers may also negotiate for more back-ended payment schedules.
Here's from OCBC Investment Research:
According to Sevan Drilling, the payment terms of Sevan Drilling Rig 4 contracted with COSCO Shipyard has been changed to a more back- ended schedule, i.e. 5% on contract execution in May 2011, 5% around Mar 2012, and the balance of 90% on delivery in 2Q12.
The original schedule was 5% on contract execution, 15% prior to steel cutting and balance 80% on delivery. (We checked with COSCO yesterday, but the group was unable to confirm this.)
Similarly, other customers may also negotiate for more back-ended payment schedules. This would mean that COSCO’s credit risk (and possibility fx/cashflow risk) may be higher than expected.
![36% of Singaporeans still feel job market is \"weak\"](http://sbr.com.sg/sites/default/files/imagecache/features/news/employees-management_52.JPG "36% of Singaporeans still feel job market is \\"weak\\"")
This signals chemical firm Eastman’s commitment to its Asian clients.
Find out how the drastic changes in the industry and the “democratisation of information” have helped Saxo Bank succeed.
One of EASB’s full-time lecturer, Willard Tan, shares his incredible educational journey with EASB and how he gives back to his alma mater.
.jpg "Simon Tan")
