Fitch affirms Petrobras Energia

Fitch Ratings said it affirmed the BB foreign- and local-currency issuer default ratings of Petrobras Energia SA (formerly Pecom Energia SA), its national scale rating at AA+(Arg), BB ratings for its senior unsecured notes and BBB- rating for its guaranteed notes.

The outlook is stable.

Ratings reflect support from the company's majority shareholder, Petrobras Brasileiro, which has a foreign-currency issuer default rating of BBB-, the agency said.

On a standalone basis, ratings are supported by solid credit metrics, an integrated business profile and proven hard currency generating ability, the agency noted.

Ratings are constrained by the high business risk associated with operating in Argentina and profits limited by price controls, export taxes and high government intervention in the energy sector, Fitch said.

At Dec. 31, the issuer's net debt-to-EBITDA ratio was 2.2 times.

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