Moody's cuts OGX outlook

Moody's Investors Service said it affirmed the B1 ratings of OGX Petroleo e Gas Participacoes SA and OGX Austria GmbH.

The agency also changed the outlook to negative from stable.

"The negative rating outlook reflects lower than expected performance from OGX's first two producing wells, negatively impacting cash flows and capital productivity," said Gretchen French, a Moody's vice president, in a news release.

"OGX's latest setback follows higher debt levels and moderate project delays and cost increases incurred over the past year, which had already diminished flexibility within the B1 rating," French said.

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