Moody's: Petrobras, Ipiranga unaffected

Moody's Investors Service said that Petroleo Brasileiro SA's (Petrobras) announced participation in a three-party consortium to acquire Grupo Ipiranga for $4 billion, including $700 million of assumed debt, will not have an impact on the company's A2 global local-currency rating or Baa2 foreign-currency bond ratings given the nature of the assets and Petrobras' strong liquidity and financial position.

Concurrently, Moody's took no action in relation to the ratings of Companhia Brasileira de Petróleo Ipiranga, Grupo Ipiranga's subsidiary engaged in fuels distribution, due to a number of uncertainties related to the transaction at this stage. Ipiranga's foreign-currency senior unsecured bonds are rated Ba3 and its Brazilian national scale senior unsecured local debentures are rated A3.br.

Petrobras' acquisition costs for its share in Grupo Ipiranga is in the area of $1.3 billion, including assumed debt. Petrobras will acquire 40% of the petrochemical assets of Ipiranga, which will allow Petrobras to consolidate its market position in the Brazilian petrochemical sector, the agency said, and the transaction will expand Petrobras' fuel distribution operations in Brazil's North, Northeast and Midwest regions.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.