Moody's drops Teekay

Moody's Investors Service said it downgraded the ratings of Teekay Shipping Corp., including the corporate family to Ba2 from Ba1 and senior unsecured to Ba3 from Ba2.

Moody's said it also affirmed the SGL-2 speculative-grade liquidity rating.

The outlook was changed to negative.

These actions resolve the review for downgrade of all ratings initiated on Sept. 5, Moody's said, noting that the lower corporate family rating reflects the weakening of credit metrics from the primarily debt-financed acquisition of a majority interest in Petrojarl ASA and from ongoing payments to shipyards as construction on the substantial order book progresses during a period of expected lower earnings due to softening of tanker spot rates.

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