Moody's: Petrobras unchanged

Moody's Investors Service said it said that the review for possible upgrade of the government of Brazil's Ba1 foreign- and local-currency bond ratings and the Baa3 foreign currency bond ceiling will have no impact on Petrobras' A3 global local currency rating or on its Baa1 foreign currency bond rating, both of which have a stable outlook.

According to the agency, Petrobras' A3 local currency rating reflects application of joint-default analysis under Moody's government-related issuers methodology, which considers a baseline credit assessment for Petrobras of 8 (comparable to Baa1) and factors in a high level of implied support by the government and a medium level of default correlation between Petrobras and the government.

An upgrade of the government's rating does not affect Petrobras's A3 rating using current support and dependence assumptions, nor would it affect the company's Baa1 foreign currency bond rating, the agency noted.

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