S&P cuts Odebrecht notes, rates new notes CCC+

S&P said it downgraded the ratings of Odebrecht Offshore Drilling Finance Ltd.'s senior notes due 2022 to D from CC and withdrew the rating on the notes, which will cease to exist following the exchange.

At the same time, S&P assigned a preliminary CCC+ rating to the company's tranche 1 senior secured notes due 2022 with a recovery rating of 4, reflecting an expectation of 30%-50% recovery in the event of default.

The outlook is positive.

On Dec. 12, Odebrecht Oleo e Gas SA and its subsidiaries obtained all legal approvals to restructure their financial debt via extrajudicial reorganization plans. Thus, Odebrecht Drilling will proceed with the exchange of its existing senior notes due 2022, which the agency said it views as a distressed exchange.

© 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.