Moody's: BW Group unchanged

Moody's Investors Service said it views the announcement by BW Group to seek bondholder consent to change certain terms of its existing notes as credit neutral.

The proposed terms include offering part of its fleet as security for the notes, the agency said, noting that the proposed transaction is credit neutral as the relative position of bond holders in BW's capital structure would remain unchanged.

Furthermore, pro forma for the transaction, the company's reduced financial flexibility -- from a lower level of unencumbered assets -- would be offset by the strengthening of its debt maturity profile, thus eliminating near- and medium-term refinancing risk in a challenging credit market, Moody's added.

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