Fitch rates QGOG notes BBB-

Fitch Ratings said it expects to assign a BBB- rating to QGOG Atlantic/Alaskan Rigs Ltd.'s $700 million senior secured notes.

The outlook is stable.

The rating addresses the likelihood of timely payment of interest and principal on the scheduled semi-annual amortizations.

The notes are backed by two intercompany loans granted to Star International Drilling Ltd. and Alaskan Star Ltd.

The guarantors own the Atlantic Star and Alaskan Star rigs, respectively, both of which have been leased to Petroleo Brasileiro SA (Petrobras) pursuant to individual charter agreements, Fitch said.

Fitch said it considers the strategic importance of the Brazilian oil and gas industry, Petrobras' role as off-taker to the charter agreements, the operating track record of the rigs and of QGOG as operator.

The industry is considered of extreme importance for the economic growth of the country and should provide a stable credit environment for companies operating in this segment, the agency added.

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