S&P ups OMI view to positive

Standard & Poor's said it revised the outlook on its ratings on OMI Corp. (BB/positive/--) to positive from stable and affirmed its corporate credit rating and other ratings on the tanker shipping company.

The outlook change reflects OMI's ongoing improvement in earnings and cash generation; a continued focus on growing its time charter business, resulting in a growing stable cash flow base; and a modestly less aggressive acquisition strategy. These trends, if continued, could result in a modest upgrade, the agency said.

S&P said the ratings reflect OMI's significant, but managed, exposure to the volatile tanker spot markets, an active vessel construction program which is nearly complete, and participation in the high-risk bulk ocean shipping industry. These negative factors are partly offset by OMI's competitive position as a leading Suezmax and product tanker operator, good access to liquidity, and growing time charter business.

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