Fitch ups Petrobras Argentina

Fitch Ratings said it upgraded Petrobras Argentina SA's foreign-currency issuer default rating to BB from BB- and senior notes due 2013 to BB from BB-. Fitch affirmed the local-currency issuer default rating at BB and guaranteed notes due 2017 at BBB.

The outlook is stable.

The ratings are supported by solid credit metrics, an integrated business profile and a competitive cost structure, the agency said. The ratings also consider the company's strong internal cash flow generation, dollar-denominated export revenues that cover all senior unsecured debt and its right to maintain up to 70% of export revenues offshore.

Key credit concerns center on the Argentine government's interference in the energy sector, the prevailing weak regulatory framework, Petrobras' asset and revenue concentration in the domestic market and declining production and reserve levels, the agency added.

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