Fitch affirms Petrobras

Fitch Ratings said it affirmed Petroleo Brasileiro SA's foreign currency issuer default rating at BBB, local currency issuer default rating at BBB+ and national long-term rating at AAA (bra).

Fitch affirmed Petrobras' $1,434,500,000 of due 2011, $750 million of notes due 2013, $600 million of notes due 2014, $500 million of notes due 2016, $399 million of notes due 2016, Yen35 billion of notes due 2016, $1.75 billion notes due 2018, $750 million of notes due 2018, $2.75 billion of notes due 2019, $2.5 billion of notes due 2020 and $1.5 billion of notes due 2040 at BBB, and $750 million of second issuance debentures due 2012 at AAA(bra).

The outlook is stable.

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

The ratings are tempered by exposure to local political interference, a significant medium-term capital-investment program, vulnerability to fluctuations in international commodity prices, currency risk and domestic market revenue concentration, the agency said.

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