Fitch rates Petrobras notes BB-

Fitch Ratings said it assigned a BB- rating to Petrobras Global Finance BV's new issuance of senior unsecured notes due 2033.

“Petrobras' ratings are linked to Brazil's sovereign ratings as a result of the influence the government may have over the company's strategies and investments. This is despite material improvements in the company's capital structure and efforts to isolate itself from government intervention. By law, the federal government must hold at least a majority of Petrobras' voting stock, and currently owns 50.3% of Petrobras' voting rights, directly and indirectly. The government has a 36.8% overall economic stake,” Fitch said in a press release.

The proceeds of the notes will be used to prepay debt and for general corporate purposes.

The outlook is stable.

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