June 14, 2018 |
Fitch Ratings said it has downgraded QGOG Constellation to restricted default (RD) from C after it missed interest payments on outstanding securities.
The Brazilian oil driller missed a $27.5m payment on its 9% cash and 0.5% payment-in-kind (PIK) 2024 bond after the grace period expired, the rating agency said in a report.
Liquidity and profitability is expected to keep deteriorating in the short-to-medium term, leading to low cash flow stability once drilling contracts expire this year.
Brazilian oil driller enters restricted default after continuing to miss interest payments