Fitch lowers Schahin, Lancer Finance

Fitch Ratings said it downgraded Schahin II Finance Co. Ltd.’s series 2012-1 senior secured notes due 2023 to B- from BB-, along with Lancer Finance Co. Ltd.’s series 2010-1 senior secured notes due 2016 to B from BB+.

The ratings remain on Rating Watch negative.

The Schahin II notes are backed by flows related to a long-term charter and services agreement signed with Petroleo Brasileiro SA (Petrobras) for the use of a dynamically positioned ultra-deepwater drillship, Fitch said.

The Lancer Finance notes are backed by flows related to a long-term charter and services agreement signed with Petrobras for the use of another dynamically positioned drillship, the agency said.

The downgrades reflect the continued deteriorating credit quality of Schahin and the heightened exposure to current depressed-market conditions, Fitch said.

Many of the risks faced by Lancer Finance are somewhat mitigated by the transaction’s additional liquidity and low leverage levels, the agency 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.