Fitch gives Petro Rio BB-

Fitch Ratings said it assigned BB- ratings to Petro Rio SA (PRIO) and Petrorio Luxembourg Trading Sarl and its $600 million of senior secured notes due 2026. PRIO guarantees the notes. The outlook is stable.

“PRIO has a strong 1P reserve life, which is estimated to exceed 17 years in 2023, and a PDP reserve life of more than 12 years; both ratios are consistent with the BB rating category, even under a conservative scenario of no replacement in the five years covered in the rating horizon. The company is well-positioned to maintain its production metrics beyond 2026. PRIO's 1P reserve life compares favorably to that of the average of its B rated peers of seven years,” Fitch said in a press release.

The agency said it sees PRIO’s leverage peaking at 1.4x debt to EBITDA in 2022 and then gradually declining through the rating horizon.

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