S&P rates Petrobras notes B+

S&P said it assigned its B+ debt rating to Petrobras Global Finance BV's (PGF's) proposed senior unsecured notes. PGF is a wholly owned finance subsidiary of Brazilian oil and gas company Petroleo Brasileiro SA - Petrobras (B+/negative/--). Petrobras will unconditionally and irrevocably guarantee the notes.

The state-owned oil company will use this issuance to fund a cash tender offer of some bonds due 2019 and 2020, with the recourses allocation strategy dependent on the final issued amount.

“We view the tender offer as opportunistic, with proposed prices to repurchase the securities above the current market price, and because we believe a failure to carry out the transaction won't increase likelihood of conventional default,” S&P said in a news release.

© 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.