Fitch lowers Odebrecht Dilling

Fitch Ratings said it downgraded the senior secured notes issued by Odebrecht Drilling Norbe VIII/IX Ltd. and Odebrecht Offshore Drilling Finance Ltd. to BB from BB+.

The outlook is negative.

The downgrades reflect the credit quality of the Odebrecht group and Petroleo Brasileiro SA’s willingness to honor underlying charter and service agreements in the event of a performance-related breach, Fitch said.

The downgrades also consider the continued pressure on global day rates and asset values caused by stressed oil prices and changes in worldwide supply and demand dynamics, the agency said.

The ratings are supported by the underlying long-term contracts with Petrobras, Fitch said, and the growing importance of Odebrecht Oleo e Gas SA as an oil-service provider.

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