S&P: Golden State on positive watch

Standard & Poor's said it placed the B- senior secured rating on Golden State Petroleum Transport on CreditWatch with positive implications.

The 4 recovery ratings are unchanged.

The CreditWatch placement reflects the positive impact on the project of the announced sale of the VLCC Ulysses to a third party, said Rubina Zaidi, an S&P analyst.

The sale is expected to take place in the first half of March and will comply with the provisions of the indenture, as amended and supplemented, governing the company's 8.04% first preferred mortgage notes due 2019, S&P said.

The agency said it expects to resolve the CreditWatch after the sale is complete and, depending on the cash proceeds, S&P could raise the rating on the project if liquidity prospects are sufficiently more robust.

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