S&P rates Overseas Shipholding notes

Standard & Poor's said it assigned its BB+ senior unsecured debt rating to Overseas Shipholding Group Inc.'s proposed $150 million 7.50% senior unsecured notes, which mature in February 2024, and affirmed all ratings on Overseas Shipholding Group, including its BB+ corporate credit rating.

The outlook is stable.

S&P said ratings reflect the company's participation in the volatile, highly fragmented, capital-intensive bulk ocean shipping industry, and historically volatile earnings. Positive rating factors include the company's business position as a leading operator of tankers, with a diversified customer base of oil companies and governmental agencies, and a relatively solid balance sheet.

S&P said it expects that internally generated cash and the company's credit facilities will be sufficient to meet operating and capital spending needs and debt maturities over the intermediate term.

At Dec. 31, Overseas Shipholding had about $75 million in cash and equivalents; $175 million available under its $350 million long-term unsecured revolving credit facility, which matures on Dec. 12, 2006; $113 million available under its $150 million long-term unsecured revolver, which matures on Aug. 20, 2008; the full amount available under its $180 million long-term unsecured revolver, which matures on Oct. 21, 2008; and $19 million available on its $45 million short-term unsecured credit facility, which matures on Aug. 13, 2004.

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