S&P: General Maritime on negative watch

Standard & Poor's said it placed its ratings, including the BB corporate credit rating, on General Maritime Corp. on CreditWatch with negative implications.

S&P said the CreditWatch placement reflects an increased aggressiveness toward acquisitions and increased debt leverage associated with the company's purchase of the fleet and technical operations of unrated Soponata SA, an operator of medium-sized oil tankers based in Portugal.

Soponata will be acquired for $247 million, plus future vessel commitments of $168 million. Soponata's fleet consists of three Aframax tankers and two Suezmax tankers, with scheduled deliveries of two Suezmax tankers in 2006 and two more in 2007. Following the acquisition, which should be completed by May 2004, S&P said it will review the acquisition and near- to intermediate-term financial prospects of the company to resolve the CreditWatch.

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