S&P: Overseas Shipholding on watch

Standard & Poor's said it placed its ratings, including the BB+ corporate credit rating and senior unsecured debt rating, on Overseas Shipholding Group Inc. on CreditWatch negative.

S&P said the CreditWatch placement followed Overseas Shipholding's Dec. 13 announcement that it has agreed to acquire Stelmar Shipping Ltd.

Overseas Shipholding will finance the purchase with cash on hand and borrowings under its existing revolving credit facilities.

S&P said Overseas Shipholding's acquisition of Stelmar Shipping, in addition to the company's recently announced entry into the liquefied natural gas sector, will significantly increase the company's debt burden.

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