Singapore bank OCBC has withdrawn its recommendations on bonds of struggling Malaysian shipbuilder Nam Cheong Ltd (NCL).

The affected bonds are the SGD 90 ($65m) 5% notes due 2017, the SGD 75m 6.5% notes due 2018 and the SGD 200m 5.05% notes due 2019.

“NCL continues to face a challenging environment, with the weak demand for newbuild OSVs hindering its ability to win new orders, as well as to offload the build-to-stock (BTS) vessels in its inventory,” said OCBC credit analyst Nick Wong.