Fitch: Petrobras notes BBB

Fitch Ratings said it assigned a BBB rating to Petroleo Brasileiro SA's (Petrobras) proposed $6 billion multi-tranche senior unsecured global notes.

The outlook remains stable.

The notes will mature in 2016, 2021 and 2041. The notes will be issued through its wholly owned subsidiary, Petrobras International Finance Co. and will be guaranteed by Petrobras.

The proceeds will be used to fund Petrobras' $224 billion capital expenditure program and for general corporate purposes.

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

The ratings also consider Petrobras' sustained production growth track record and reserves growth prospects after significant discoveries in recent years, the agency said.

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

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