May 11, 2012 / 6:32 PM / 7 years ago

TEXT-S&P: United Maritime rating unchanged by planned unit sale

 (The following statement was released by the rating agency)	
 May 11 - Standard & Poor's Ratings Services said today that its ratings and
CreditWatch listing of Tampa, Fla.-based shipping company United Maritime Group
LLC (B/Watch Dev/--) are unchanged at this time by the company's plan to sell
another of its subsidiaries. United Maritime announced today that it entered
into a definitive agreement to sell U.S. United Bulk Terminal LLC (UBT), a
wholly owned subsidiary that operates its bulk terminal services business, to
Bulk Handling USA Inc., an affiliate of Oiltanking Holding Americas Inc. for
$215 million.	
	
The ratings on United Maritime Group LLC remain on CreditWatch with developing 	
implications, where we had placed them on April 20, 2012, after the company 	
announced that it had entered into a definitive agreement to sell United Barge 	
Line LLC (UBL), a wholly owned subsidiary that operates its inland barge 	
business, to Ingram Barge Co. for $222 million. The company expects to close 	
on both transactions in the second quarter of 2012.	
	
UBL is the most profitable unit of the company. In 2011, UBL generated $146 	
million in revenues and $9.4 million in operating income. UTB, the second-most 	
profitable segment of the company, generated $57.4 million in revenues and 	
$5.9 million in operating income last year. In comparison, United Maritime 	
reported $326 million in consolidated revenues and $3.3 million operating 	
income.	
	
In resolving the CreditWatch listing, we will assess the outcome of potential 	
sales of the inland barge and the bulk terminal businesses and the effects 	
they could have on the company's business profile. We believe the remaining 	
entity will be much smaller, primarily focused on the ocean services business. 	
We will also assess how United Maritime uses proceeds from the sales, whether 	
or not the company pays down debt, and how the sales affect the company's 	
financial profile, financial policies, and operating prospects. 	
	
 (New York Ratings Team)	
 
0 : 0
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