S&P affirms Teekay

Standard & Poor's said it affirmed the ratings, including the BB+ long-term corporate credit rating, on Teekay Corp.

At the same time, S&P said it removed the ratings from CreditWatch with negative implications, where they were placed Sept. 1, 2006.

The outlook is negative.

The agency added that the ratings on Teekay reflect its exposure to the competitive and price-taking spot tanker segment, which contributed to about half of its operating income, a weakened financial risk profile following recent debt-financed acquisitions of Petrojarl and OMI Corp. and a generally shareholder-friendly distribution policy.

Partially mitigating these risks are a number of positive factors, including Teekay's market-leading and defendable position in the shuttle tanker business, increasing revenue contribution from more stable liquefied gas and offshore segments, a strong customer base and a young fleet, S&P noted.

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