S&P lowers Windsor notes to B

Standard & Poor's said it lowered its rating on Windsor Petroleum Transport Corp.'s $239.1 million secured term notes due Jan. 15, 2021, with $224.1 million outstanding as of Sept. 30, to B from BB-. At the same time, the agency said it placed the rating on CreditWatch with negative implications.

The recovery rating remains unchanged at 4, indicating an expectation of an average recovery of principal in the event of a payment default.

"The downgrade of the secured term notes reflects our expectation of poor tanker market fundamentals, coupled with our estimate of secondhand tanker values being lower than the current net debt outstanding on the Pioneer," said S&P credit analyst Mark Habib in news release.

The agency said the negative implication of the CreditWatch reflects Windsor's exposure to volatile spot charter rates with the Pioneer, and the short-term risk of further charter terminations.

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