Moody's rates Petrobras Energia Ba1

Moody's Investors Service said it assigned a Ba1 global local-currency issuer rating to Petrobras Energia SA.

The agency also affirmed the Ba2 foreign-currency rating for bonds issued under the $2.5 billion obligaciones negociables program and the Baa1 foreign-currency rating for the series S bonds based on a Petrobras standby purchase agreement. Moody's also assigned a national scale rating of Aa2.Ar to several series of bonds.

The outlook is positive.

The global local-currency issuer rating reflects support from Petroleo Brasileiro SA (A2 global local-currency issuer rating).

The rating reflects a moderately sized energy company with some benefit from integration and diversification, Moody's said.

The rating is constrained by declining reserves, a rising cost structure, fairly aggressive financial leverage and negative regulatory impact, the agency said.

According to Moody's, the Ba2 foreign-currency rating reflects its sizable export profile and strong track record servicing its foreign-currency debt during the Argentine financial crisis as well as the high degree of convertibility and transfer risk reflected in Argentina's B2 long-term foreign-currency ceiling and B3 foreign-currency government bond rating.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.