Moody’s lifts QGOG to stable

Moody's Investors Service said it affirmed the Caa1 rating of the senior secured global notes due July 2018 issued by QGOG Atlantic/Alaskan Rigs Ltd.

The company’s outlook also was changed to stable from negative.

The ratings reflect the end of the renegotiation process between QGOG Atlantic/Alaskan Rigs Ltd. and Petroleo Brasileiro SA (Petrobras), which is the sole contractual off-taker and revenue source to service the outstanding debt issued by QGOG in 2011, Moody’s explained.

The ratings also consider the vessels' operating performance since issuance of the notes, maturity of the outstanding debt, re-contracting risks and liquidity arrangements, the agency said.

The ratings also consider the weak economic fundamentals of the oil exploration market, which have reduced the demand for drilling vessels on a worldwide basis, Moody’s said.

The stable outlook also reflects an expectation that QGOG will maintain financial margins at current and historical levels due to the end of renegotiations of its charter and service agreements with Petrobras, the agency said.

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