APRIL 2003 MOODYS
MOODY'S WITHDRAWS RATING OF OLEODUCTO de CRUDOS PESADOS (OCP) LTD. AND OLEODUCTO de CRUDOS PESADOS (OCP) ECUADOR S.A. SENIOR SECURED BANK CREDIT FACILITIES
Approximately $900 Million of Credit Facilities Affected. New York, April 16, 2003 -- Moody's Investors Service has withdrawn the rating of the U.S. $900 Million senior secured bank credit facilities of Oleoducto de Crudos Pesados (OCP) Ltd. and Oleoducto de Crudos Pesados (OCP) Ecuador S.A., (together "OCP"). Moody's action reflects inadequate financial and operating information required to monitor the ratings.
Moody's had lowered the ratings on October 4, 2002 and left them on review for potential further downgrade due to the uncertainties surrounding the project including the potential for further delays, dispute resolution concerns, cost-overrun support, and payment timing issues.
OCP is an oil pipeline project involving the development, construction and operation of a blended stream, heavy crude oil pipeline system of approximately 310 miles in length, running from the Oriente Basin of eastern Ecuador to the Pacific coast at Balao, near Esmeraldas.
Moody's Investors Service
I think this may mean that OCP's insurance becomes null and void. OCP has to have insurance. Therefore, i think that OCP has to halt construction until either they get a different insurance, or they manage to restore their credit rating.
There is another great article in the english language paper "FAZ Weekly". You can view it at: www.faz.com/IN/INtemplates/eFAZ/default.asp