S&P: Odebrecht notes BBB-

Standard & Poor's said it assigned a BBB- long-term issue rating to Odebrecht Offshore Drilling Finance Ltd.'s $580 million senior secured notes due October 2022.

The outlook is stable.

Odebrecht Oil & Gas SA initially pooled together three of its seven ultra-deepwater drillships to refinance about $1.69 billion in the capital markets, S&P said. The company concentrated those assets under Odebrecht Offshore Drilling Finance.

The transaction includes a re-tap feature under which Odebrecht Offshore Drilling Finance can issue additional same or new series of notes if it adds similar vessels as part of the collateral for the transaction, the agency said.

S&P said it believes that Odebrecht Offshore Drilling Finance's key counterparty continues to be Petrobras, the charterer of the vessels, and Odebrecht Oil & Gas, its operator.

Although the agency said it believes alternative Brazilian market offtakers may be available to replace Petrobras, the time to implement such a replacement would be too long to prevent significant cash flow deterioration.

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