S&P downgrades Windsor

Standard & Poor's said it lowered to BB- from BB+ the rating on Windsor Petroleum Transport Corp.'s $239.1 million of secured term notes due Jan. 15, 2021.

The outlook remains negative.

The agency also said it revised its recovery rating to 4 from 3, indicating 30% to 50% expected recovery in a default.

The action follows cancellation of Windsor's memorandum of understanding to sell a vessel, the Pioneer, for a net value that would have redeemed the principal and interest associated with the vessel, S&P said.

The agency said it believes the weak tanker environment will make it difficult to find another buyer at a similar price in the short term.

As a result, Windsor must continue to operate the vessel in the merchant market at spot-charter rates, exposing it to merchant and operating risk, while it seeks a long-term solution, S&P said.

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