Fitch lowers OGX

Fitch Ratings said it has downgraded OGX Petroleo e Gas Participacoes SA's foreign and local currency issuer default rating to B- from B and its long-term national-scale rating to BB+(br) from BBB-(br).

Fitch said it has also downgraded the rating of the company's $2.6 billion and $1.1 billion notes to B-/RR4 from B/RR4. Wholly owned subsidiary OGX Austria GMBH is the issuer of both notes.

These notes are unconditionally and irrevocably guaranteed by OGX, OGX Petroleo e Gas Ltda. and OGX Campos Petroleo e Gas SA, the agency stated.

The outlook has been revised to negative from stable.

Fitch said that the rating downgrades reflect concern about OGX's liquidity due to its aggressive acquisition of 13 exploratory blocks during a time in which the company is implementing an aggressive investment program and is struggling to bring oil and gas production on line.

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