Fitch rates OGX, notes B+

Fitch Ratings said it assigned foreign- and local-currency issuer default ratings of B+ to OGX Petroleo e Gas Participacoes SA, along with a B+ with a recovery rating of RR4 to the company's $2 billion proposed senior unsecured notes issuance due 2018.

A long-term national scale rating of BBB(bra) also was assigned.

The RR4 recovery rating reflects an average expected recovery in a default.

The outlook is stable.

The ratings reflect the company's sizable and diversified oil and gas resources, its experienced management team and ability to execute production from its shallow water Campos blocks using proven technology, Fitch said.

Primary concerns include the potential for a delay in incorporating proven reserves and unforeseen production delays that could result from delays in critical equipment delivery, the agency said.

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