S&P: Teekay on watch

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

The CreditWatch listing follows Teekay's announcement that it plans to make a tender offer for Petrojarl ASA, the agency said.

The company has not yet announced how it intends to fund the transaction, but Teekay has significant availability under its revolving credit facility, S&P said, adding that ratings on Teekay reflect its participation in the competitive, volatile, highly fragmented and fixed-capital-intensive bulk shipping industry, combined with an aggressive growth strategy, new vessel construction program and an increasingly shareholder-friendly financial policy.

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