Fitch lowers SBM Baleia Azul

Fitch Ratings said it downgraded the rating on SBM Baleia Azul, Sarl’s series 2012-1 senior secured notes due 2027 to BB from BB+.

The outlook is negative.

The notes are backed by the flows related to the charter agreement signed with Petroleo Brasileiro SA (Petrobras), Fitch said.

SBM do Brasil Ltda. (SBM Brasil) is the Brazilian subsidiary of SBM Holding Inc. SA.

The downgrade follows a similar downgrade of Petrobras, the offtaker of the transaction, the agency said.

The negative outlook reflects the outlook on Petrobras, Fitch said. The downgrades also are in response to Brazil's downgrade, which reflects the deeper-than-anticipated economic contraction, failure of the government to stabilize the outlook on public finances and the sustained legislative gridlock and elevated political uncertainty, the agency said.

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