Fitch rates Petrobras

Fitch Ratings said it assigned a long-term rating of BB- to Petrobras (Petroleo Brasileiro SA)'s proposed senior unsecured debt issuance.

The notes will be issued by Petrobras Global Finance BV and will be unconditionally and irrevocably guaranteed by Petrobras.

The proceeds will be used to refinance existing debt and for general corporate purposes, Fitch said.

The ratings are capped by Brazil's sovereign ratings due to the government's strong ownership and potential control, the agency said, and due to the company's strategic importance to the country.

The ratings also reflect the company's dominant market share in the supply of liquids fuels in Brazil, Fitch said.

The ratings consider the country's large hydrocarbon production footprint, which exposes the company to government intervention through pricing policies and investment strategies, the agency said.

The stable outlook reflects the stable outlook on Brazil's sovereign rating, Fitch said.

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