S&P ups Odebrecht Offshore notes

S&P said it raised the rating on Odebrecht Offshore Drilling Finance Ltd.’s tranche 1 senior secured notes to B- from CCC+ and affirmed the recovery rating on the notes at 2.

The agency said it forecasts ODFL to post a debt-service coverage ratio near 1.5x (considering cash and reserve accounts) by December, when the notes are due.

“This results from our expectation of higher cash flow available for debt service after it secured a 500-day charter and service contract for Norbe VI with Petro Rio, which started in April 2022. In our view, this is positive from a credit standpoint because it considerably reduces the market risk the project was exposed to before the re-contracting,” S&P said in a press release.

The outlook is stable.

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