S&P rates Schahin notes BBB-

Standard & Poor's said it assigned a BBB- preliminary rating to Schahin II Finance Co. Ltd.'s $730 million senior secured notes due in September 2023 with an assumed fixed coupon of 6¾%.

The outlook is stable.

The strong contractual structure of the project, including 10-year charter and services agreements with Petroleo Brasileiro SA - Petrobras, along with limited construction risk, provides the primary credit support for the rating and stable outlook, the agency said.

The project is issuing the notes under a Rule 144A offering to fund the costs associated with the repayment of a construction bridge loan and the initial operations of a deepwater drillship that will operate off the coast of Brazil, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.