Moody's cuts Golden State Petroleum notes

Moody's Investors Service said it downgraded Golden State Petroleum Transport Corp.'s 8.04% first preferred mortgage term notes due 2019 rating to Ba2 from Baa3.

The outlook is negative.

The downgrade reflects Frontline Ltd.'s failure to find an acceptable replacement charter for the Antares Voyager and increasing market risk as a result of weakness in global tanker markets. In addition, Golden State announced it is soliciting approval from bondholders to sell the Antares Voyager, Moody's said.

The Ba2 rating is supported by combined cash and Antares Voyager sales proceeds, which are likely to be adequate to retire all of the allocated debt based on recent values on sales of similar tankers, Moody's said.

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