S&P affirms Overseas Shipholding

Standard & Poor's said it affirmed its ratings, including the BB+ corporate credit rating, on Overseas Shipholding Group Inc.

The affirmation followed the shipping company's announcement that it has entered into a joint venture with Qatar Gas Transport Co. Ltd. to construct four Liquified Natural Gas carriers. The vessels will enter into 25-year time charters transporting natural gas from Qatar to the U.K., upon delivery in 2007 and 2008. Overseas Shipholding will own 49.9% of the joint venture, and the vessel construction costs will be more than $900 million.

S&P said ratings on Overseas Shipholding Group Inc. 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.

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