S&P: Golden State view to stable

Standard & Poor’s said it affirmed the B- project rating on Golden State Petroleum Transport Corp.

The agency also said it revised the outlook to stable and affirmed the company’s 4 recovery rating.

The outlook revision follows news of Golden State’s pending sale of the very large crude carrier Ulriken. That sale follows another sale of the crude carrier Ulysses in March 2014, S&P said.

The company had been drawing on liquidity reserves in recent years because its cash flows alone weren’t enough to cover debt service, the agency said. S&P said it expects that the company will use existing liquidity to supplement the proceeds from the vessel sale.

The stable outlook reflects an expectation that the announced sale will close during October, S&P said, and Golden State will use proceeds to pay the remainder of the outstanding debt and accrued interest.

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