Moody's may up Ipiranga notes

Moody's Investors Service said it placed under review for upgrade the Ba3 foreign-currency rating of Companhia Brasileira de Petróleo Ipiranga's (Ipiranga) step-up senior unsecured notes due August 2008.

The possible upgrade reflects Moody's view that Ipiranga will benefit from the ownership of Ultrapar Participacoes SA to improve its operating margins through more efficient cost control and synergies, the agency said.

The credit strength of Ultrapar also is expected to have a positive impact on Ipiranga 's financial management, with potential reduction in funding costs, as demonstrated by the recent redemption of Ipiranga 's local market debentures, the agency said.

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