Moody's cuts OGX notes

Moody's Investors Service said it downgraded OGX Petroleo e Gas Participacoes SA's corporate family rating to Caa2 from B2 and OGX Austria GmbH's senior unsecured notes ratings to Caa2 from B2.

The outlook is negative. This action concludes the rating review initiated on April 9.

"The rating downgrade of OGX is driven by weak oil production response and cash flows, negatively impairing asset coverage of the company's senior unsecured notes," Moody's vice president Gretchen French said in a news release. "The negative outlook reflects OGX's constrained liquidity profile through 2014."

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