S&P changes Overseas Shipholding view to negative

S&P said it affirmed its B- issuer credit rating on Overseas Shipholding Group Inc. and revised the outlook to negative from developing.

At the same time, the agency affirmed the B+ issue-level ratings on the company's asset-based revolver due February 2019 and secured term loan due August 2019. The 1 recovery ratings are unchanged, indicating an expectation for very high recovery (90%-100%; rounded estimate: 95%) in the event of a payment default.

“The negative outlook reflects the upcoming maturities of the company's undrawn $75 million ABL due February 2019 and $353 million term loan due August 2019,” the agency said in a news release.

“Although the company has publicly stated it has refinancing commitments in place to replace its existing term loan, we acknowledge there is still a possibility that the proposed transaction does not close.”

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