An integrated credit rating and loan quality model: application to bank shipping finance

Assessing a borrower’s credit quality is a critical input for efficient bank loan facility allocation, particularly at phases of financial distress. An integrated credit rating model is proposed to borrowers’ credit rating in support of bank financing decisions. Based on a global bank survey, a core set of critical quantitative and qualitative criteria are initially identified and are subsequently weighted and rated, incorporating a dynamic multicriteria optimization approach. The issue of credit rating migration, inducing adjustments in bank financing decisions, is also investigated. The empirical findings can be instrumental to bank credit policy decisions and risk management.     

Finite element modelling and strength analysis of hold No. 1 of bulk carriers

Bulk carriers are subject to SOLAS regulations concerning the structural integrity of hold No. 1. SOLAS Chapter XII Regulation 6 mandates that the transverse watertight bulkhead between the two foremost holds and double bottom of the foremost hold shall have sufficient strength to withstand flooding of the first hold. This regulation applies to all single-skin bulk carriers of 150 m in length and upwards constructed before 1 July 1999. IACS provides rules for the construction of these areas of such vessels in order to comply with SOLAS Chapter XII. This paper presents a methodology for modelling hold No. 1 of bulk carriers using finite elements in order to assess the structural integrity of these areas under the loads prescribed by IACS. Results from respective nonlinear analyses using IACS loads are also presented.     

On the time for the abandonment of flooded passenger ships due to collision damages

The time dependency of the survivability of passenger ships in flooding accidents leading to ship’s loss is shown to be confined within short times after the flooding initiation. RoRo ferry and cruise type ships demonstrate similar behaviour, though vessel types differ with respect to the subdivision and the flooding process. The presented research is based on numerical simulations of the flooding of two sample passenger ships in collision damages and the estimation of the probability to capsize. The systematic fast character of capsize events is shown to be primarily a consequence of the extent of hull breaches. The IMO regulatory concept for orderly abandonment of damaged passenger ships, in addition to the safe return to port regulatory provisions, are discussed in view of the present results. The timely onboard damage identification by ship’s master and the enhancement of the SOLAS survivability requirements for passenger ships appear to be the most effective operational and design measures leading to improved survivability of the ship and to enhanced safety of people onboard.