S&P lifts Petrobras Energia

Standard & Poor's said it raised its foreign currency ratings on Petrobras Energia SA to B+ from B.

The outlook is stable.

The agency said that the rating action mainly reflects its perception that short- to medium-term positive price prospects coupled with positive economic growth expectations in Argentina enhance economic incentives for the parent, Petroleo Brasileiro SA - Petrobras (not rated), to support its subsidiary.

The ratings on Petrobras Energia reflect its relatively aggressive financial risk profile, significant need for capital expenditures and high exposure to uncertain and rapidly changing economic and regulatory rules, mainly in Argentina and Venezuela, S&P added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.