S&P rates Odebrecht notes CCC+

S&P said it assigned a CCC+ rating to Odebrecht Offshore Drilling Finance Ltd.'s senior secured tranche 1 notes due 2022.

The outlook is positive.

The agency also assigned a recovery rating of 4 to the proposed notes, reflecting an expectation of 30%-50% recovery in the event of default.

S&P said the rating on the new notes reflects a belief that the project's long-term financial performance is unsustainable.

“The contracts of Norbe VI mature in July 2018, and the project has relatively low resilience in a downside scenario,” the agency said in a news release.

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