S&P cuts Overseas Shipholding

Standard & Poor's said it lowered its long-term corporate rating on Overseas Shipholding Group Inc. to BB- from BB, along with its senior unsecured debt to BB- from BB, one notch below the new corporate credit rating. The 4 recovery rating remains unchanged, indicating an expectation of 30% to 50% recovery in a default scenario.

The outlook is stable.

The ratings reflect the company's weakened financial profile due to significantly reduced earnings, caused by prolonged weakness in tanker rates and incremental debt from the ongoing vessel newbuild program, S&P said.

Positive credit factors include adequate liquidity and a well-established market position in the ocean transportation of crude oil and petroleum products, S&P added.

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