S&P lowers Odebrecht Offshore

Standard & Poor’s said it lowered the ratings on Odebrecht Offshore Drilling Finance Ltd.’s notes to BB from BBB-.

The outlook remains stable.

The downgrades reflect the stand-alone credit profile revision on Petrobras. Petrobras chartered the four drillships involved in the Odebrecht Offshore transaction.

These contracts constitute a key project component for the debt rating on Odebrecht Offshore’s notes.

The ratings reflect the very high likelihood of extraordinary support from the government in the event of financial distress, S&P said.

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