Moody's lowers General Maritime ratings

Moody's Investors Service said it lowered the ratings of General Maritime Corp. including the corporate family rating to B1 from Ba3 and the senior unsecured debt to B2 from B1.

The outlook is stable.

Moody's said the lower ratings reflect Moody's assessment that the implementation of the new dividend policy will weaken General Maritime's credit profile, despite strong current credit metrics and otherwise modest levels of debt on the company's balance sheet. The ratings continue to reflect the volatile nature of the crude oil tanker sector in which the company operates, the risk from which is heightened by the predominantly spot-charter exposure that the company undertakes as well by the age of the General Maritime's fleet.

Ratings are supported, however, by continued generation of strong operating cash flows even as tanker rates have moderated, and by General Maritime's robust liquidity position.

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