S&P raises Seabulk, cuts Seacor

Standard & Poor's said it lowered the corporate credit rating on Seacor Holdings Inc. to BBB- from BBB and removed the rating from CreditWatch with negative implications following a review of its acquisition of Seabulk International Inc.

At the same time, S&P raised its rating on Seabulk's $150 million senior unsecured notes due 2013 to BB+ from B and removed the rating from CreditWatch with positive implications.

The outlook is negative.

S&P said the rating actions reflect the Seacor's aggressive acquisition strategy. Notably, the acquisition of Seabulk followed close on the heals of the late 2004 acquisition of ERA Aviation Inc., both of which have raised debt leverage and heightened concern about the integration of two large acquisitions at the same time. In addition, Seacor faces near- and medium-term spending needs to rejuvenate Seabulk's aging marine services fleet, as well as the replacement of five single-hulled product tankers required to be retired between 2007 to 2015.

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