Fitch 10 Most Distressed LatAm Corporates: If OODFL Defaults, Recovery to Be Above Average

With default a real possibility for Odebrecht Offshore Drilling Ltd. (OODFL), investors who wait could expect an above average recovery, according to this final report in Fitch Ratings' 10-report series on the 10 Most Distressed LatAm Corporates.

One report was released each day through Feb. 12 per the schedule found at the bottom of this release.

'Using a discounted cash flow analysis, we expect an average recovery of 80%. A liquidation scenario would result in significantly lower recovery given distressed market conditions,' said Cinthya Ortega, Director.

The recovery analysis assumes a dayrate between USD250,000 - USD300,000 for ODN I, ODN II and Norbe VI; daily opex below USD175,000, uptime levels below 95%, and proceeds from the sale of Tay IV of no less than USD50 million.

The recovery analysis incorporates the possibility that dayrates may be renegotiated, but also assumes that existing Petrobras rig contracts will not be terminated.

A negative rating action would be triggered if the notes are restructured to avert probable payment default.

Fitch's 10 Most Distressed LatAm Corporates series will be released one report per day as follows:

Feb. 1st: Samarco Mineracao S.A.

Feb. 2nd: Companhia Siderurgica Nacional

Feb. 3rd: Pacific Exploration and Production Corporation

Feb. 4th: GOL Linhas Aeresas S.A.

Feb. 5th: Oi S.A.

Feb. 8th: GeoPark Latin America Limited Agencia en Chile

Feb. 9th: Ajecorp B.V.

Feb. 10th: TV Azteca, S.A.B. de C.V.

Feb. 11th: QGOG Constellation S.A.

Feb. 12th: Odebrecht Offshore Drilling Finance Ltd.

For more information, a special report titled 'Odebrecht Offshore Drilling Limited - Recovery Estimate Analysis' is available on the Fitch Ratings web site at www.fitchratings.com or by clicking on the link.

Additional information is available at www.fitchratings.com

Odebrecht Offshore Drilling Limited -- Recovery Estimate Analysis (Above Average Recovery Expected for Those Who Wait)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=877649

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160212005549/en/