Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers O > Headlines for Odebrecht Offshore Drilling Finance Ltd. > News item |
Fitch downgrades Odebrecht
Fitch Ratings said it downgraded the senior secured notes issued by Odebrecht Offshore Drilling Finance Ltd. to B- from B+ and the senior secured notes issued by Odebrecht Drilling Norbe VIII/IX Ltd. to B from BB-.
The ratings remain on Rating Watch negative, Fitch added.
The downgrades reflect the termination of the ODN Tay IV charter and services agreements by the off-taker Petroleo Brasileiro SA (Petrobras), the agency said, and the impact of Petrobras' additional reduction in capital expenditures on its willingness to honor existing contracts upon a performance breach or bankruptcy of the operator.
The negative watch reflects the potential direct impact on Odebrecht if the notes are either accelerated or restructured as a result of the cancellation of the Tay IV charter and service agreements and the sponsor's inability to re-charter the vessel or replace the asset by Dec. 23, Fitch said.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.