S&P drops U.S. Shipping Partners to D

Standard & Poor's said it lowered its corporate credit rating on U.S. Shipping Partners LP to D from CCC.

At the same time, the agency said it lowered the ratings on the senior secured debt to D from CCC, while leaving the recovery rating on this debt unchanged at 3, indicating expectations of meaningful recovery in the event of a payment default.

At the same time, the agency said it lowered the rating on the senior secured notes to D from CC, the same as the corporate credit rating, while leaving the recovery rating unchanged at 6, indicating expectations of a modest recovery in the event of a payment default.

The rating actions follow U.S. Shipping's announcement that it was in default under the terms of its senior credit agreement, after failing to make principal and interest payments due on Dec. 31, S&P noted.

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