Moody's cuts Windsor notes

Moody's Investors Service said it downgraded Windsor Petroleum Transport Corp.'s 7.84% term secured notes due 2021 to B3 from Ba2 and is maintaining a negative outlook on the rating.

The rating action is prompted by the bondholder consent on June 27 for Frontline Ltd. acting as manager for the vessels, to sell the Pioneer VLCC and by the highly volatile conditions in international shipping markets, which may make it difficult to sell the Pioneer or realize adequate proceeds to retire its allocated debt, the agency said.

The downgrade reflects Frontline's latest solicitation and consent of bondholders to sell the vessel as well as the impact of weak global shipping markets on the transaction, the agency noted.

Given Pioneer's tight liquidity and uncertainty over the sale, Moody's said it is maintaining a negative outlook. If the vessel does not achieve a Minimum Required Bid, it will remain subject to volatile spot market rates and declining cash resources.

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