S&P gives U.S. Shipping Partners loan B+, notes B-

Standard & Poor's said it assigned its B+ bank loan rating to U.S. Shipping Partners LP's amended and restated $350 million credit facility, which consists of a $40 million five-year revolving facility and a $310 million six-year term loan that includes a $60 million delayed draw.

A recovery rating of 2 was also assigned to the bank facility, the agency said.

In addition, S&P said it assigned its B- rating to the company's new $100 million senior secured notes due 2014 with a recovery rating of 5 while affirming its B+ corporate credit rating on the company.

The outlook is stable.

S&P noted that the ratings on U.S. Shipping reflect limited free cash flow after partnership distributions, a very aggressive financial policy, participation in the competitive and capital-intensive shipping industry and the modest size of its fleet of older vessels.

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