Fitch rates Petrobras notes BBB

Fitch Ratings said it assigned a BBB rating to Petroleo Brasileiro SA's $1.5 billion 7 7/8% senior unsecured global notes due 2019 issued through its wholly owned subsidiary, Petrobras International Finance Co.

Proceeds will be used to refinance debt.

The agency said Petrobras' ratings are supported by its leadership position in the Brazilian domestic energy market, its recognized expertise in offshore exploration and production and its strategic importance to Brazil.

These factors are tempered by vulnerability to fluctuations in international commodity prices, exposure to local political interference, currency risk, domestic market revenue concentration and significant medium-term capital-investment requirements linked to the company's ambitious strategic plan, Fitch said.

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