S&P: Trailer Bridge on watch

Standard & Poor's said that it placed the B- long-term corporate credit rating and B- senior secured note rating on Trailer Bridge Inc. on CreditWatch with negative implications.

The CreditWatch placement reflects concerns over the high refinancing risks and repricing risk associated with the substantial majority of the company's debt, including the $82.5 million of senior secured notes maturing in November, the agency said.

The ratings on Trailer Bridge reflect its weak liquidity, highly leveraged financial profile, concentrated end-market demand and participation in the capital-intensive and competitive shipping industry, the agency added.

The ratings consider the less-cyclical nature of demand for consumer staples that Trailer Bridge mostly carries and barriers to entry due to the Jones Act, S&P said.

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