Moody's lifts Petrobras Energia

Moody's Investors Service said it upgraded its ratings for Petrobras Energia SA's (PESA) foreign currency bonds and notes to Ba3 from Caa1, following Moody's upgrade of Argentina's foreign currency ceiling for bonds and notes to B3 from Caa1 on June 29.

The upgrade also reflects Moody's updated policy for allowing ratings of foreign currency corporate bonds sold under foreign law to pierce the country ceiling. The company's foreign currency issuer rating and foreign currency corporate family rating were upgraded to B3 from Caa1.

The issuer rating and the corporate family rating are constrained by Argentina's B3 ceiling, as only ratings assigned to specific securities can pierce a country ceiling under Moody's rating policies, the agency said.

The outlook is stable.

PESA's Ba3 foreign currency bond rating reflects both the company's fundamental credit quality and the degree of sovereign interference anticipated in times of stress, Moody's said.

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