Moody's ups Petrobras

Moody's Investors Service said it upgraded the foreign-currency bond rating of Petróleo Brasileiro SA (Petrobras) and its guaranteed subsidiaries to A3 from Baa1 and changed the outlook to stable from positive.

The upgrade is in response to the upgrade of the government of Brazil's long-term foreign-currency rating to Baa2 from Baa3, while maintaining a positive outlook, the agency said.

The upgrade of Petrobras' foreign-currency rating to A3 is equalized with its A3 local-currency rating, the agency added. Petrobras' foreign-currency rating is appropriately positioned at two notches above the Brazilian government's foreign-currency bond rating, based on the low likelihood that Petrobras would be affected in the event of a general moratorium in Brazil on foreign-currency debt payments.

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