S&P lowers Petroperu

S&P said it lowered its ratings on Petroleos del Peru Petroperu SA to B+ from BB-.

“We view Petroleos del Peru's (Petroperu) capital structure as increasingly weak, although we expect financial performance to recover in 2024 once the Talara refinery becomes fully operational. 2023 will remain a very fragile year for Petroperu amid scarce liquidity that triggered a new aid request to the government and the need to negotiate covenant terms with Compania Espanola de Seguros de Credito a la Exportacion (Cesce),” S&P said in a statement.

“Amid the tighter liquidity and higher leverage than we previously anticipated due to new support from government and new third-party funding, we revised downward the company's stand-alone credit profile (SACP) to ccc+ from b-,” S&P added.

The global rating downgrades follows the lower SACP, the agency said.

The outlook is stable.

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