SAO PAULO--(BUSINESS WIRE)--Fitch Ratings has downgraded the Foreign Currency (FC) and Local Currency (LC) Issuer Default Ratings (IDRs) of OGX S.A. to 'D' from 'C' and its long-term National Scale rating to 'D (bra)' from 'C(bra)'. In conjunction with these rating actions, Fitch has affirmed the rating of OGX's USD2.6 billion and USD1.1 billion notes at 'C/RR5'.
KEY RATING DRIVERS
The rating downgrade reflects the company's filing for bankruptcy protection on Oct. 20, 2013, as well as the culmination of the 30-day grace period to cure a missed interest payment on Oct. 1, 2013.
The 'C/RR5' rating of the company's outstanding notes reflects the expected average- to below-average recovery prospects - the company is very likely to lose some of its exploration concession after filing for bankruptcy.
RATING SENSITIVITY
Positive: OGX's future rating post-bankruptcy restructuring will depend on its ability to retain assets and service its debt.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--'Corporate Rating Methodology' (Aug. 2013);
--'Rating Oil and Gas Exploration and Production Companies' (Aug. 2012).
Applicable Criteria and Related Research:
Corporate Rating Methodology: Including Short-Term Ratings and Parent and Subsidiary Linkage
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=715139
Rating Oil and Gas Production Companies
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=682334
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=806725
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