OREANDA-NEWS. Fitch Ratings has downgraded the foreign and local currency Issuer Default Ratings (IDRs) for Schahin Oil & Gas Ltd. (Schahin) to 'D' from 'C' following the company's bankruptcy filing.

KEY RATING DRIVERS
Fitch's rating action reflects Schahin's request for bankruptcy protection after unsuccessful attempts to obtain new financing to operate, and extend its debt maturity profile schedule. The situation has been aggravated by the ongoing Lava-Jato investigations related to the Engineering and Construction (E&C) subsidiary of the group, Schahin Engenharia S.A., and the group's temporary ban from participating in new contracts with Petrobras.

KEY ASSUMPTIONS
--Fitch assumes the court will accept Schahin's bankruptcy filings.

RATING SENSITIVITIES
The company's ratings reached the lowest level in Fitch's rating scale. An upgrade is unlikely at this time given the group's bankruptcy protection filling.