S&P cuts General Maritime to B+

Standard & Poor's said it lowered its long-term corporate credit rating on General Maritime Corp. to B+ from BB- and placed the rating on CreditWatch with negative implications. The agency also said it lowered the company's senior unsecured notes to B-, two notches below the corporate credit rating, and placed it on negative watch. The 6 recovery rating remains unchanged, indicating an expectation of 0% to 10% recovery in a default.

The downgrade reflects the potential for a financial covenant breach, despite recent financial covenant amendments, S&P said.

The downgrade also considers the company's constrained liquidity due to prolonged pressures on earnings and cash flow from weak tanker rates and significantly higher cash interest payments, the agency said.

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