S&P: Ship Finance to negative

Standard & Poor's said it revised the outlook on Ship Finance International Ltd. to negative from stable.

The agency also said it affirmed its BB long-term corporate credit rating.

The outlook revision follows news that Ship Finance intends to amend its long-term chartering agreements with Frontline Ltd., its second largest counterparty, which will reduce income from these agreements as of 2012, S&P said.

The outlook revision also considers a view that Ship Finance's credit measures will weaken below guidelines when the amended charter agreements take effect, the agency said.

The prolonged industry downturn will increase default risk from the company's counterparties, S&P added.

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