Fitch assigns BB to Acu Petroleo notes

Fitch Ratings said it assigned an expected rating of BB to the fixed-rate senior secured notes of Acu Petroleo Luxembourg Sarl for up to $650 million due in 2035. Acu Petroleo SA will guarantee the notes and the structure will contemplate a legal and target amortization schedule, set to allow for the debt to be fully amortized in 10 years, through a target amortization cash sweep mechanism.

“Acu Petroleo Luxembourg’s rating reflects the characteristics of the underlying asset, an operational oil transshipment port whose revenue profile is exposed to contract renewal and volume ramp-up risks. The project expects volumes to increase as a result of the development of the Pre-Salt Fields which depends on long-term oil prices. The expected rating further reflects the regulatory model that does not impose minimum or maximum pricing restrictions and the expectation that the premium tariff, related to the reliability of the port's services, will at least remain stable during the following years,” Fitch said in a press release.

The outlook is negative.

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