S&P rates Far-Eastern notes BB-

Standard & Poor's said it assigned its BB- preliminary long-term corporate credit rating to Far-Eastern Shipping Co. plc.

The outlook is stable.

At the same time, S&P assigned its preliminary BB- issue rating to the proposed senior secured notes to be issued by Far East Capital Ltd. SA, a direct subsidiary of Far-Eastern Shipping.

The final amount will depend on market conditions, but the agency said it anticipates that it will comprise two tranches of not less than $300 million each, noting that the preliminary offering memorandum assumes gross proceeds from the issuance of the notes of $800 million. The preliminary recovery rating on the notes is 4.

S&P said the rating reflects its assessment of Far-Eastern Shipping's business risk profile as "fair" and its financial risk profile as "aggressive."

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