Fitch prunes Petroperu

Fitch Ratings said it downgraded Petroleos del Peru Petroperu SA' s long-term foreign- and local-currency issuer default ratings to B+ from BB+. Fitch also lowered the rating on Petroperu's senior unsecured notes to B+ from BB+. The stand-alone credit profile remains at ccc-.

“The multiple-notch downgrade reflects the change in the government-related entity (GRE) assessment score from 32.5 to 25, as a result of the precedent of support factor reassessment to not applicable from strong. Per Fitch's government-related entities rating criteria, Petroperu is now rated on a bottom-up +5 basis compared to the previous TD-3, due to the lowering of the GRE assessment score coupled with the 10-notch rating differential between the sovereign rating and the SCP,” the agency said in a press release.

The outlook remains negative.

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