S&P: K-Sea on watch

Standard & Poor's said it placed its BB- corporate credit rating on K-Sea Transportation Partners LP on CreditWatch with negative implications.

The CreditWatch placement follows the company's recent announcement that it is acquiring Smith Maritime Ltd. and Sirius Maritime LLC in a debt-financed transaction, the agency said.

S&P noted that the pending acquisitions will increase K-Sea's barrel capacity significantly and bolster its business position but will also result in a substantial increase in debt, adding that the total purchase price consists of $195 million in cash and assumed debt plus K-Sea common units valued at $10 million.

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