Fitch: Petrobras notes BBB

Fitch Ratings said it assigned a BBB rating to Petroleo Brasileiro SA's (Petrobras) proposed €1.85 billion multi-tranche senior unsecured global notes.

The notes are split into two tranches of €1.25 billion and €600 million that will mature in 2018 and 2022, respectively.

Petrobras has a long-term issuer default rating of BBB with a stable outlook.

Fitch also said it assigned a foreign-currency issuer default rating of BBB to Petrobras' wholly owned subsidiary Petrobras International Finance Co.

The outlook is stable.

The notes will be issued through the finance company and will be unconditionally and irrevocably guaranteed by Petrobras.

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

The ratings are supported by its 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 the company's exposure to local political interference and its significant medium-term capital-investment program, the agency said.

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