S&P rates Petrobras notes BBB

Standard & Poor's said it assigned a BBB rating to the $1.5 billion senior unsecured global notes due March 2019 issued by Petroleo Brasileiro SA (BBB) subsidiary Petrobras International Finance Co.

The outlook is stable.

The agency said the ratings reflect Petrobras' satisfactory business risk profile - characterized by the quality of its exploration and production activities and a dominant market position in all aspects of the Brazilian hydrocarbon industry - and its intermediate financial risk profile.

These positive factors are somewhat balanced by Petrobras' limited geographic diversification, with the majority of its assets and sales concentrated in Brazil, and the expectation of marginal free operating cash flow during the next years because of Petrobras' aggressive capital expenditures program, S&P said.

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