S&P rates Teekay notes B+

S&P said it assigned a B+ rating and 3 recovery rating to Teekay Corp.'s proposed $300 million senior secured notes due 2024.

The agency also said it affirmed the company's B+ long-term issuer credit rating.

The company will use the proceeds of the notes issuance, coupled with cash on hand and draws on its revolving credit facility, to repay its $500 million senior unsecured notes outstanding due 2020.

The B+ senior unsecured debt rating and 4 recovery rating on the existing senior unsecured notes due 2020 are unchanged.

The ratings reflect the company's strong market position in the liquefied natural gas (LNG) and tankers segment, large and high quality shipping fleet, sound cost structure and average profitability compared with the global shipping industry, S&P said.

The stable outlook reflects expectations that the company will be able to refinance its senior unsecured notes due 2020, the agency said.

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