S&P cuts Teekay

Standard & Poor's said it lowered the long-term corporate credit and unsecured debt ratings on Teekay Corp. to BB- from BB.

The recovery rating on the unsecured debt is unchanged at 4, indicating 30% to 50% expected recovery in a default.

The ratings also were removed from CreditWatch, where they were placed with negative implications in September.

The outlook is stable.

The downgrade reflects the company's lower-than-expected EBITDA generation and currently high leverage, S&P said.

While the agency said it believes leverage will improve next year, it is expected to remain at about 7x.

Rating strengths include the company's market-leading and defendable position in the shuttle tanker business and improving product offerings, S&P added.

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