S&P rates Odebrecht notes BBB

Standard & Poor's said it assigned its BBB long-term issue rating to Odebrecht Offshore Drilling Finance Ltd.'s $1.69 billion senior secured fixed-rate notes due in 2022.

The outlook is negative.

The rating assignment follows Odebrecht Offshore's notes issuance and the agency's receipt and satisfactory review of all transaction documentations, including legal opinions.

"OODF has granted the bond's proceeds via two intercompany loans to ODN I GmbH and Odebrecht Drilling Norbe Six GmbH, the financing vehicles through which the Odebrecht Oil & Gas Ltd. owns Norbe VI, ODN I and ODN II, the vessels that guarantee the transaction. ODN I GmbH and Odebrecht Drilling Norbe Six GmbH have used the proceeds to refinance outstanding bank loans - which financed the construction of the vessels - to pay the cost associated with terminating the swaps currently in place, and to a lesser extent to upstream a dividend," S&P Credit analyst Candela Macchi said in a news release.

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