S&P: Ultrapetrol notes B-

Standard & Poor's said it assigned a B- rating to Ultrapetrol (Bahamas) Ltd.'s upcoming $200 million notes issue due 2021.

The proceeds will be used to refinance its existing $180 million senior notes due 2014.

The B- corporate rating on Ultrapetrol reflects the inherent risks of operating in the shipping industry, S&P said, and exposure to the cyclicality of the agricultural and iron ore productions, Ultrapetrol's main cargoes in its river business segment.

The positive outlook reflects an expectation that it will benefit from stronger contracted position in its offshore supply business segment with higher rates and cost pass-through clauses, the agency said, and from improved market conditions, leading to stronger credit metrics.

Also, the refinancing of the 2014 notes will improve the company's liquidity, allowing the company to use its cash flow generation to the improvement of its activities, S&P said.

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