S&P cuts Overseas Shipholding

Standard & Poor's said it lowered its long-term corporate credit rating on Overseas Shipholding Group Inc. to CCC- from CCC+.

The agency said it lowered its ratings on the company's senior unsecured debt to CCC- from CCC+, the same as the corporate credit rating. The 3 recovery rating remains unchanged.

At the same time, the agency said it placed its corporate credit and senior unsecured debt ratings on the company on CreditWatch with negative implications.

"The downgrade reflects our belief that OSG is facing a high probability of very near-term default, following the company's announcement today that it is evaluating strategic options including potentially filing Chapter 11," said S&P credit analyst Funmi Afonja in a news release.

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