Standard & Poor's Ratings Services last week lowered its ratings on Bermuda-based Sea Containers Ltd., including lowering the corporate credit rating to `BB-' from `BB'.

S&P said it was lowering the rating because the freight-to-travel business must offload assets and raise funds to repay debts that come to maturity on July 1. "The ratings were lowered as a result of Sea Containers' reduced financial flexibility due to significant near-term refinancing risk," said Standard & Poor's credit analyst Betsy Snyder. "Ratings remain on CreditWatch pending the outcome of its planned refinancing of $158 million of debt maturities that mature on July 1, 2003," the analyst said. The company intends to sell approximately $160 million of assets and to exchange senior notes due in 2003 and 2004 for new securities with higher coupons and/or longer maturities. Proceeds from the asset sales will be used to redeem senior notes that are not exchanged.

The company is in the process of arranging a $160m bridge facility that would be used to redeem the senior notes if the planned asset sales do not close by the July 1, 2003 maturity.