Fitch might cut QGOG Atlantic/Alaskan Rigs

Fitch Ratings said it placed the BBB- ratings assigned to the series 2011-1 senior secured notes due 2019 issued by QGOG Atlantic/Alaskan Rigs Ltd. on Rating Watch Negative.

The notes are backed by the flows related to the charter agreements signed with Petroleo Brasileiro (Petrobras) for the use of the moored semi-submersibles Atlantic Star and Alaskan Star. Queiroz Galvao Oleo e Gas SA (QGOG) is the operator of the vessels and QGOG Constellation SA is the primary sponsor of the transaction.

Fitch said the action reflects: (a) Fitch's rating action to Petrobras, offtaker to the transaction; (b) the strength of the existing offshore charter and service contracts; (c) QGOG Constellation's credit quality; and (d) the strong performance and low leverage that protect investors from a potential decrease in asset values.

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