Fitch to give Petrobras reopening BB

Fitch Ratings said it expects to assign a BB(EXP) rating to Petrobras (Petroleo Brasileiro SA)'s proposed $4 billion to $6 billion notes reopening.

The reopening is part of Petrobras Global Finance BV’s (PGF) 2022 and 2027 notes and will be unconditionally and irrevocably guaranteed by Petrobras.

The company expects to use the proceeds to refinance existing debt and for general corporate purposes.

Fitch said the ratings continue to reflect Petrobras' close linkage with the sovereign rating of Brazil due to the government's control of the company and its strategic importance to Brazil as its near-monopoly supplier of liquid fuels.

By law, the federal government must hold at least a majority of Petrobras' voting stock. The government currently owns 60.4% of Petrobras' voting rights, directly and indirectly, and has an overall economic stake in the company of 45.3%.

© 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.