S&P rates Petrobras Global notes BB-

S&P said it assigned its BB- debt rating on Petrobras Global Finance BV's proposed senior unsecured notes due 2049.

Petrobras Global is a wholly-owned finance subsidiary of Petrobras (Petroleo Brasileiro SA), the agency said.

Petrobras will unconditionally and irrevocably guarantee the notes, S&P said.

The company is proposing an add-on to its senior unsecured notes due 2029.

The state-owned oil company will use the net amount from those issuances to finance the tender offer on several bonds due 2021 through 2025, the agency said.

S&P said it rates Petrobras Global's senior unsecured debt the same as the issuer credit rating on Petrobras based on the guarantee of this debt and because the latter has limited secured debt collateralized by real assets.

The company's ratings are capped by the Brazilian sovereign ratings, the agency noted.

Petrobras is expected to sustain a sound performance thanks to a growing production, continued debt reduction, solid portfolio management and the maintenance of effective and solid governance standards, S&P said.

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