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Fitch Affirms Odebrecht Drilling Norbe VIII / IX Ltd., Series 2010-1 at 'BBB'

  Fitch Affirms Odebrecht Drilling Norbe VIII / IX Ltd., Series 2010-1 at
  'BBB'

Business Wire

CHICAGO -- November 08, 2012

Fitch Ratings has affirmed the rating assigned to the 2010-1 notes issued by
Odebrecht Drilling Norbe VIII / IX Ltd. (Odebrecht Drilling) as follows:

--US$1,500,000 2010-1 notes affirmed at 'BBB'; Outlook Stable.

The rating affirmation reflects the forward-looking expectation of uptime
performance and operating expenses (opex); the transaction's semiannual debt
service coverage ratios (DSCRs) and current liquidity protections; and the
continued positive environment for local content providers in the Brazilian
oil and gas industry.

The notes are backed by the flows related to two charter agreements signed
with Petroleo Brasileiro S.A. (Petrobras) for the use of the dynamically
positioned ultra-deepwater drillships Norbe VIII and Norbe IX. Odebrecht Oleo
e Gas S.A. (OOG), sponsor of the transaction, is the operator of the vessels.
Deutsche Bank Trust Company Americas, as collateral agent to the transaction,
has been assigned a collateral package that includes a pledge of the shares of
the entities that own the drillships, as well as mortgages on them.

During the nine-month period through September 2012, Norbe VIII's average
uptime level was 83.25%. The rig suffered 20 days of downtime in March due to
an electrical failure. During the nine-month period through September 2012,
Norbe IX's average uptime level was 98.7%. Fitch expected uptime performances
to build from 80%-90% over the first 1.5 years and to average 95.0% after year
2. Based on the rigs' recent performance and the agency's understanding that
Norbe VIII's electrical failure was an extraordinary event, Fitch anticipates
future uptime performance to continue to meet expectations.

Transaction DSCRs as defined in the documents consider total revenues,
Mobilization Fee account balances, and daily opex of up to USD135,000 for the
first two semiannual payments. These DSCRs on a consolidated basis were 1.48x
for December 2011 and 1.37x for June 2012.

The transaction benefits from the additional liquidity provided from reserves
in a total amount equivalent to one principal and interest amortization, and
six months of business interruption insurance in case uptime performance falls
below expected levels.

In its credit analysis, Fitch considered the strategic importance of the
Brazilian oil and gas industry, evidenced by Petrobras' robust investment
plans. Demand for existing drillships in Brazil is expected to remain strong.

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 06, 2012);

--Rating Criteria for Infrastructure and Project Finance (July 12, 2012);

--Odebrecht Drilling Norbe VIII/IX Ltd., Series 2010-1 (Jan. 12, 2011).

Applicable Criteria and Related Research:

Rating Criteria for Infrastructure and Project Finance

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=682867

Global Structured Finance Rating Criteria

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

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.

Contact:

Fitch, Inc.
Primary Analyst
Cinthya Ortega, +1-312-606-2373
Director
70 W Madison
Chicago, IL 60602
or
Secondary Analyst
Cristina Madero, +1-312-368-2080
Associate Director
or
Committee Chairperson
Greg Kabance, +1-312-368-2052
Managing Director
or
Media Relations
Elizabeth Fogerty, +1-212-908-0526
elizabeth.fogerty@fitchratings.com
 
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