Fitch gives BB to Petrobras notes

Fitch Ratings said it assigned a BB(EXP) rating to Petrobras (Petroleo Brasileiro SA)'s proposed issuance of global notes.

The proposed senior unsecured global notes will mature in 2021 and 2026.

The notes will be issued through its wholly owned subsidiary, Petrobras Global Finance BV (PGF) and will be unconditionally and irrevocably guaranteed by Petrobras.

Proceeds will be used to refinance existing debt and for general corporate purposes.

Fitch said the ratings continue to reflect Petrobras’ close linkage with the sovereign rating of Brazil due to the government's control of the company and its strategic importance to Brazil as its near-monopoly supplier of liquid fuels. By law, the federal government must hold at least a majority of Petrobras' voting stock. The government currently owns 60.5% of Petrobras' voting rights, directly and indirectly, and has an overall economic stake in the company of 46%.

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