S&P: Petrobras Energia unchanged

Standard & Poor's said its ratings on Petrobras Energia SA (PESA; B/Watch negative) would not be affected by the company's announced accounting adjustment that will be reflected in the financial statements as of Dec. 31.

S&P said that net worth will decrease by about $60 million as a result of a provision of $140 million against its Venezuelan assets to adjust their expected recovery value, and the reversal of certain allowances for tax credits for about $83 million.

Since the above-mentioned accounting adjustments do not imply cash movements, they do not have an impact on the ratings on PESA at this point, the agency said, noting that nevertheless, in line with its concerns, the adjustments reflect lower than previously expected future cash generation due to changing business conditions in Venezuela.

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