Fitch affirms Petrobras

Fitch Ratings said it affirmed Petroleo Brasileiro SA's foreign-currency issuer default rating at BBB, local-currency issuer default rating at BBB and national long-term rating at AAA (bra).

The agency also affirmed Petrobras International Finance Co.'s foreign-currency issuer default rating at BBB and international debt issuance at BBB.

Fitch also said it affirmed Petrobras Argentina SA's guaranteed notes at BBB.

The outlook is stable.

The ratings are supported by its leadership position in the Brazilian domestic energy market, its recognized expertise in offshore exploration and production and its strategic importance to Brazil, Fitch said.

The ratings are tempered by Petrobras' aggressive capital expenditure program, exposure to local political interference, vulnerability to fluctuations in international commodity prices and domestic market revenue concentration, the agency said.

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