Moody's: K-Sea view stable

Moody's Investors Service said it confirmed K-Sea Transportation Partners, LP's corporate family rating at B1 and speculative grade liquidity rating at SGL-3. Moody's also changed the outlook to stable.

This concludes the review for downgrade begun on June 27.

The confirmation follows the closing of the acquisitions of Smith Maritime, Ltd. and Sirius Maritime, LLC (both not rated) for $203 million with no degradation in the credit profile, the agency said.

The B1 corporate family rating reflects K-Sea's market-leading position in its market sector. Predictable revenue and track record of stable operations also support the ratings, Moody's said.

The rating is tempered by expectations of low retained cash flow, the agency said.

Ratings could be downgraded if the company sustains a debt-to-EBITDA ratio above 5 times or upgraded if it stays below 3 times.

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