Moody's: Petrobras notes A3

Moody's Investors Service said it assigned an A3 rating to six series of global notes issued by Petroleo Brasileiro SA subsidiary Petrobras Global Finance BV totaling $11 billion. The outlook is negative.

Proceeds from the note issuance will be used to help fund capital expenditures related to Petrobras' business plan for 2013-2017 and for general corporate purposes.

"We are maintaining our negative outlook on Petrobras' A3 foreign-currency bond and other ratings, reflecting the company's large capital program, rising debt levels and relatively flat oil production in the near term," Tom Coleman, Moody's senior vice president, said in an agency news release.

"While this large financing should cover a major portion of Petrobras' 2013 cash flow shortfall and funding needs, we expect further financing will be necessary both to fund capital spending and meet debt amortizations."

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