Moody's upgrades Petro Rio

Moody's Investors Service said it upgraded Petro Rio SA's corporate family rating to Ba3 from B1 following the completion of the acquisition of Albacora Leste oil field. The agency also boosted the rating on Petrorio Luxembourg Trading Sarl’s $600 million of backed senior secured notes due 2026 to Ba3 from B1. The outlook for all ratings was changed to stable from positive.

“The upgrade of Petro Rio's ratings to Ba3 follows the conclusion of the acquisition of Albacora Leste oil field on Jan. 26, 2023 for a total of $1.951 billion. The new field will materially increase Petro Rio's production and reserves sizes, while not affecting the company's conservative leverage ratios. Liquidity will also be adequate after the payment for the acquisition given Petro Rio's sound internal cash generation and manageable debt amortization schedule,” Moody’s said in a press release.

The revised outlook indicates the view that Petro Rio will succeed in in incorporating Albacora Leste to its portfolio, and that production will increase to over 100,000 boe/d in 2024, the agency said.

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