Fitch cuts Odebrecht Offshore notes

Fitch Ratings said it downgraded the senior secured notes issued by Odebrecht Offshore Drilling Finance Ltd. to CCC, RE80 from B- and affirmed the senior secured notes issued by Odebrecht Drilling Norbe VIII/IX Ltd. at B.

The ratings were removed from Rating Watch Negative and Odebrecht Drilling Norbe VIII/IX Ltd. was assigned a negative outlook.

Fitch said the downgrade of the Odebrecht Offshore notes reflects the following: (a) Liquidity challenges caused by the cancellation of the Tay IV contracts, resulting in a decrease in the balance of the reserve accounts; (b) continued deterioration of the environment for offshore drillers; and (c) the sponsor's ongoing discussions with the Odebrecht Offshore noteholders that have increased Fitch's concerns regarding a potential restructuring of the notes.

The rating also considers reduced risk of acceleration of the notes that could have impacted the sponsor's financial profile, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.