S&P: Odebrecht Oleo notes BBB-

Standard & Poor's said it assigned a BBB- corporate credit rating to Odebrecht Oleo e Gas SA.

The agency also said it assigned a BBB- debt rating the company's proposed up to $400 million senior unsecured perpetual notes.

The outlook is stable.

The ratings reflect the company's BB+ stand-alone credit profile, plus one notch due to potential support from the Odebrecht SA group, S&P said.

The potential support stems from an assessment of the somewhat strategic role that Odebrecht Oleo plays in the economic group, the incentives the parent company has to support the subsidiary under distress and the financial flexibility that the group provides to the subsidiary, the agency said.

The proceeds of the perpetual notes will be used to pre-pay some of the existing debt at the holding company level, S&P said, and finance the equity portion of future growth projects.

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