S&P affirms Petrobras Argentina foreign currency ratings

Standard & Poor's said it affirmed its CCC+ foreign currency ratings on Petrobras Argentina SA (PESA). The outlook remains negative.

The BBB- issue-level rating on the company's $300 million 2017 bond equals the corporate credit rating on the parent, Petroleo Brasileiro SA - Petrobras (Petrobras; BBB-/stable/--), due to its full and unconditional payment guarantee.

S&P said its CCC+ foreign currency ratings on PESA mainly reflect S&P's opinion that the company won't be able to honor potential foreign currency nonguaranteed obligations under a scenario of restrictions to access foreign currency and/or restrictions on transferring money abroad. As a result, S&P's foreign currency ratings on PESA are the same as S&P's T&C assessment for Argentina.

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