S&P revises Odebrecht Offshore note tranche view to stable

S&P said it revised its outlook on the CCC+ issue-level rating on Odebrecht Offshore Drilling Finance Ltd.'s (OODFL's) first tranche of the 6.72% senior secured notes due 2022 to stable from positive.

At the same time, S&P affirmed the debt rating, and the 4 recovery rating on the notes remains unchanged.

“The stable outlook reflects our expectation that OODFL will maintain operating performance in the next 12 months, with an average uptime of both vessels above 90%,” S&P said in a news release.

“The outlook revision reflects our understanding that the upside that could come from the recontracting of Norbe VI didn't materialize, given that the vessel is likely to stay idle for more than one year.”

“In the absence of a new contract for Norbe VI, we estimate that all reserve accounts will be fully depleted before the 2022 maturity of tranche 1,” S&P said.

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