S&P: Windsor Petroleum notes' view to negative

Standard & Poor's said it revised the outlook on Windsor Petroleum Transport Corp.'s $111.7 million secured serial notes due 2010, which are rated AA, to negative from stable. The BB+ rating on Windsor's $239.1 million secured term notes remains on CreditWatch with negative implications.

The revision was a result of the recent outlook change on BP plc, the parent of BP Shipping Ltd., which is the charter counterparty of Windsor's four large crude carriers.

The negative outlook on BP reflects potential pressure on BP's financial flexibility, which is already limited, S&P said.

A prolonged clean-up process of the Deepwater Horizon incident, along with high litigation costs, could result in a downgrade, the agency said.

Greater clarification of the financial and reputational impact, along with greater understanding of how BP will protect its balance sheet, could lead to a revision of the outlook to stable, S&P said.

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