Moody's confirms OMI

Moody's Investors Service said it confirmed the Ba3 senior implied rating, B2 senior unsecured issuer rating and B1 rated $200 million 7 1/8% senior unsecured notes due 2013 of OMI Corp., completing a review for possible downgrade that was initiated on June 25. The outlook is stable.

OMI's ratings had been placed on review for possible downgrade following the announcement by the company of its proposed purchase of vessels from Athenian Carriers Ltd. for about $585 million.

At the time of the announcement, Moody's said it was concerned about the increased levels of debt associated with this acquisition and its affect on near term liquidity, the timing and levels of shipyard payments related to the acquired new building commitments and the success of OMI's integration of these vessels into its current fleet operations.

Moody's said now it believes that the cash flows that the acquired assets contribute to OMI's consolidated performance are adequate to maintain the company's credit fundamentals over the near term.

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