Oct. 22 (Bloomberg) -- Navios Maritime Holdings Inc., a commodities shipping company, plans to sell $375 million of debt as Standard & poor’s cut its default forecast on high-yield, high-risk U.S. corporate bonds in half because of a “sharp” decline in funding costs stemming from government support.

Navios, based in piraeus, Greece, may pay a yield of about 9.25 percent on its $375 million of notes due in 2017, according to a person familiar with the offering who declined to be identified because terms aren’t set. S&p reduced its 12-month default-rate forecast to 6.9 percent from 13.9 percent projected at the end of the second quarter, the ratings company said yesterday in a report.

S&p’s default-rate expectations declined as credit markets continue to rally following the $11.6 trillion the U.S. government has lent, spent or guaranteed to revive credit markets and fight the recession. Defaults will slow in the near term because companies have taken advantage of investor demand for corporate bonds to refinance upcoming maturities with longer-term debt, S&p analysts led by Diane Vazza wrote in the report.

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