Moody’s lowers Schahin II Finance notes to C

Moody's Investors Service said it downgraded the Schahin II Finance Co. (SPV) Ltd.’s senior secured global notes due in 2022 to C from Ca.

The outlook was changed to stable from negative.

Moody’s said the action reflects the fact that Schahin II did not make the scheduled interest and principal payment on Sept. 25. In addition, on May 2022, Petroleo Brasileiro SA (Petrobras, Ba2 stable) notified the issuer that the charter agreement as well as the services agreement for the use of Schahin II's offshore drilling vessel Sertao were terminated.

The agency understands that Schahin Petroleo e Gas (SPG, unrated), the operator of the vessel, has not entered into new charter and services agreements, which has caused a material deterioration of the issuer's liquidity position as measured by the level of reserve accounts of the transaction.

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