Fitch lowers SBM Baleia Azul

Fitch Ratings has downgraded SBM Baleia Azul, Sarl's series 2012-1 senior secured notes due 2027 to BB- from BB.

The outlook also was revised to stable from negative.

The notes are backed by the flows related to the charter agreement signed with Petroleo Brasileiro SA (Petrobras) for the use of the floating production storage and offloading unit (FPSO), Cidade de Anchieta, for a term of 18 years.

SBM do Brasil Ltda. (SBM Brasil), the Brazilian subsidiary of SBM Holding Inc. SA, is the operator of the unit.

The off-taker's credit quality is a key risk factor for determining the strength of the off-taker's payment obligation, Fitch said.

The agency said the strength of the off-taker's payment obligation is typically notched from the off-taker's issuer default rating.

The growth and stability of the FPSO market is more robust than other floating facilities for many reasons, Fitch said. They usually require less capital expenditures, can be brought on production quicker with attendant cash flow benefits and have the possibility for relocation from one comparable field to another, the agency said.

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