S&P revises Eletson to stable

Standard & Poor's said it revised its outlook on Eletson Holdings Inc. to stable from positive.

At the same time, the agency affirmed its B long-term corporate credit rating on the company and its B issue rating on the $300 million first-preferred ship mortgage notes.

S&P said the outlook revision reflects its expectation that Eletson's earnings will not improve as much as it expected on account of lower-than-anticipated product tanker charter rates that it thinks will persist in the remainder of 2014 and in 2015.

Combined with the company's accelerated spending on new vessels, the lower-than-expected earnings will likely lead to credit metrics that would not be consistent with a higher rating.

Constrained EBITDA also weighs on the company's liquidity position; however, S&P said it understands that Eletson's management is taking timely proactive measures to bolster its liquidity sources.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.