S&P lowers First Ship Lease

Standard & Poor's said it lowered the long-term corporate credit rating on First Ship Lease Trust to B+ from BB-.

The outlook is negative.

The agency also said it lowered the rating because of the increase in the trust's exposure to volatile freight rates in the spot market.

This is due to termination of fixed-rate long-term charter contracts by two lessees. A prolonged downturn in the shipping industry has put the weak credit profile of its lessees under pressure, S&P said.

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