S&P cuts Overseas Shipholding

Standard & Poor's said it lowered Overseas Shipholding Group Inc.'s corporate credit and senior unsecured debt ratings to BB from BB+. All ratings were removed from CreditWatch, where they were placed with negative implications on Oct. 31.

The outlook is now stable.

According to S&P, the downgrade reflects the company's weakened financial profile following acquisitions, share buybacks, higher dividends and recently reduced earnings.

Positive credit factors include satisfactory liquidity and a well-established market position in the ocean transportation of crude oil and petroleum products, the agency said.

The issuer's net debt-to-EBITDA ratio rose to about 5 times from 3 times in the prior-year period.

S&P said the credit profile continues to benefit from ongoing diversification into less volatile businesses such as liquefied natural gas shipping and its solid market position in the U.S. domestic shipping trade.

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