CHICAGO--(BUSINESS WIRE)--Fitch Ratings has assigned the following rating to the notes issued by QGOG Atlantic / Alaskan Rigs Ltd (the Issuer), a business company setup in the British Virgin Islands (BVI):
--US$700 million senior secured notes, 'BBB-'; Outlook Stable.
Fitch's rating addresses the likelihood of timely payment of interest and principal on the scheduled semi-annual amortizations (one principal deferral allowed).
The notes are backed by two intercompany loans granted to Star International Drilling Ltd. (Star International) and Alaskan Star Ltd. (Alaskan Star Ltd.; collectively Guarantors). The Guarantors own the Atlantic Star and Alaskan Star rigs, respectively, both of which have been leased to Petroleo Brasileiro S.A. (Petrobras) pursuant to individual charter agreements. The rigs are moored semi-submersibles with midwater depth capacity and have been operating for Petrobras since the mid-1990s. The rights to the charter agreements are assigned as collateral to secure the notes on a cross-collateralized basis. Queiroz Galvao Oleo e Gas S.A. (QGOG) will remain as operator of the rigs and Deutsche Bank Trust Company Americas acts as collateral agent on behalf of the noteholders. The collateral package includes a pledge of the shares of the guarantors, as well as mortgages on the rigs.
Fitch considered the following factors in its credit analysis: the strategic importance of the Brazilian oil and gas industry, Petrobras' role as off-taker to the charter agreements (Petrobras Issuer Default Rating [IDR] 'BBB'), the operating track record of the rigs and of QGOG as operator, liquidity, overall leverage, and the structural features in place.
A detailed description of the criteria applied in the analysis is provided in Fitch's report titled 'QGOG Atlantic / Alaskan Rigs Ltd.' available at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
Sources of information used to assess this rating were Queiroz Galvao Oleo e Gas S.A., Santander Investment Securities Inc., HSBC Securities (USA) Inc., Noble Denton & Associates, ODS-Petrodata, Inc., and Rigzone.com, Inc.
Applicable Criteria and Related Research:
--'Global Structured Finance Rating Criteria', Aug. 13, 2010;
--'Rating Criteria for Infrastructure and Project Finance', Aug. 13, 2010.
Applicable Criteria and Related Research:
Global Structured Finance Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547326
Rating Criteria for Infrastructure and Project Finance
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=548345
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