S&P: Overseas Shipholding loans BB-, notes B

Standard & Poor's said it assigned its B corporate credit rating to Overseas Shipholding Group Inc. (OSG).

The outlook is stable.

At the same time, the agency assigned a BB- issue-level rating and 1 recovery rating to credit facilities of the company's principal subsidiaries: OSG Bulk Ships Inc.'s (domestic business) $75 million asset-based lending facility and $603 million senior secured term loan due 2019; and OSG International Inc.'s $50 million revolving credit facility and $628,375,000 senior secured term loan, both due in 2019.

S&P also assigned a B issue-level rating and 4 recovery rating to OSG's reinstated notes, which consist of $300 million 8 1/8% senior unsecured notes due 2018 and $146 million 7½% senior unsecured notes due 2021 or 2024.

"The rating on OSG reflects the company's high leverage, even after emerging from bankruptcy, the competitive nature of the shipping industry, and its substantial, albeit reduced, revenue exposure to volatile tanker charter spot markets," S&P credit analyst Michael Durand said in a news release.

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