Fitch rates Petrobras note BBB

Fitch Ratings said it assigned a BBB rating to Petroleo Brasileiro SA's $1.25 billion 7 7/8% senior unsecured global notes due 2019 issued through its wholly owned subsidiary Petrobras International Finance Co.

The notes are unconditionally and irrevocably guaranteed by Petrobras.

The notes will be consolidated to form a single series and fully fungible with the $1.5 billion notes issued on Feb. 11, 2009.

Proceeds will be used to refinance debt.

Ratings are supported by the company's leadership position in the Brazilian domestic energy market, its recognized expertise in offshore exploration and production and its strategic importance to Brazil (BBB-/stable), the agency said.

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, the agency noted.

© 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.