Fitch Assigns 'BBB' Rating to SBM Baleia Azul, S.a.r.l's Notes; Outlook Stable

  Fitch Assigns 'BBB' Rating to SBM Baleia Azul, S.a.r.l's Notes; Outlook
  Stable

Business Wire

SAO PAULO & CHICAGO -- November 06, 2012

Fitch Ratings has assigned the following rating to the notes issued by SBM
Baleia Azul, S.a.r.l. (the issuer), a company domiciled in Luxemburg:

--USD500 million senior secured notes 'BBB'; Outlook Stable.

The notes are backed by the flows related to the charter agreement signed with
Petroleo Brasileiro S.A. (Petrobras; Issuer Default Rating 'BBB') 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. S.A. (SBM), is the operator of the
FPSO. SBM is the primary sponsor of the transaction.

The Cidade de Anchieta is one of 19 FPSOs in SBM's global fleet. On Sept. 17,
2012, SBM announced the vessel successfully completed the acceptance process
with Petrobras, and officially began operating at the Baleia Azul oil field on
Sept. 10, 2012.

The Cidade de Anchieta FPSO has recently completed refurbishment to adapt oil
processing and other key equipment to the characteristics of the Baleia Azul
oil field. The FPSO was previously named FPSO Espadarte, and was allocated to
the oil field of the same name up until the end of 2010. Proceeds of the
issuance have in large part been used to reimburse SBM for most costs of
refurbishment.

Noteholders have been assigned a collateral package that includes a pledge of
the shares of the issuer and owner of the vessel, as well as a mortgage on the
FPSO.

Fitch considered the following factors in its credit analysis: the positive
environment surrounding the development of the local oil and gas industry in
Brazil, Petrobras' role as off-taker to the charter agreement, the credit
quality and experience of SBM as sponsor of the transaction, the operating
characteristics of an FPSO, overall leverage and liquidity, and the structural
protections in place, among other factors.

A detailed description of the criteria applied in the analysis is provided in
Fitch's New Issuer Report titled 'SBM Baleia Azul, S.a.r.l.' available at
'www.fitchratings.com'.

Additional information is available at 'www.fitchratings.com'. The ratings
above were solicited by, or on behalf of, the issuer, and therefore, Fitch has
been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria', June 6, 2012.

Applicable Criteria and Related Research: SBM Baleia Azul, SII/ S.a.r.l. -
Series 2012-1

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=694171

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

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Contact:

Fitch Ratings
Primary Analyst
Bernardo Costa, +55-11-4504-2607
Senior Director
Fitch Ratings do Brasil Ltda.
Alameda Santos, 700
Sao Paulo-SP 01418-100
or
Secondary Analyst
Cinthya Ortega, +1-312-606-2373
Director
or
Committee Chairperson
Greg Kabance, +1-312-368-2052
Managing Director
or
Media Relations:
Elizabeth Fogerty, New York, +1 212-908-0526
Email: elizabeth.fogerty@fitchratings.com
 
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