Fitch rates Petrobras notes BBB-

Fitch Ratings said it assigned a BBB- rating to Petroleo Brasileiro SA's (Petrobras) $1 billion 5 7/8% senior unsecured global notes due 2018 issued through its wholly owned subsidiary, Petrobras International Finance Co.

Proceeds will be used for general corporate purposes.

The agency said Petrobras' ratings are supported by substantial proved hydrocarbon reserves and increasing upstream output, recognized leadership in offshore exploration and production, a favorable international product price environment, successful corporate and industry restructuring during the past decade, a transition to more transparent financial standards and dominant domestic market share.

These supportive credit factors are tempered by Petrobras' vulnerability to fluctuations in international commodity prices and its exposure to local political interference, Fitch said.

Petrobras' adjusted total debt-to-EBITDA ratio was 1.3 times for the last 12 months ended June 30.

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