S&P lifts Overseas Shipholding view to stable

S&P said it revised the outlook on Overseas Shipholding Group Inc. to stable from negative, and affirmed its B+ rating on the company's $325 million term loan due 2023.

The loan's recovery rating is unchanged at 1, indicating 90% to 100& expected default recovery.

The outlook revision reflects the elimination of refinancing risk following the successful closing of the company's $325 million senior secured term loan due 2023.

The company used the proceeds from the new term loan, along with about $28 million of cash from its balance sheet, to repay its $353 million term loan due August 2019.

The company extended the maturity on its undrawn asset-backed loan to August 2019 from February 2019 and the credit line was reduced to $30 million from $75 million.

Although the agency said it is comfortable with Overseas Shipholding's adequate liquidity over the next 12 months due to its high cash balance, S&P said it acknowledges that the loan's upcoming August 2019 maturity limits the company's financial flexibility in the event cash flows are weaker than currently expected.

The stable outlook reflects the elimination of refinancing risk following the closing of its term loan due 2023, S&P said.

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