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Brazil: Petrobras Rating Upgraded By Moody’s

The company’s constant improvement in liquidity profile and financial metrics was highlighted in the report

Petrobras’ corporate debt has been upgraded from B2 to B1 and outlook from stable to positive by the ratings agency Moody’s. 

Continuous improvement in the company’s liquidity profile and financial metrics over the last few quarters was emphasized by Moody’s in its report. This was partly attributable to greater cost efficiency and a new fuel pricing policy. Access to capital markets and refinance of part of its debt has been possible as a result of these factors. 

Changes in the Brazilian regulatory environment that facilitate higher returns on long-term investments has been underscored by Moody’s. The management’s commitment to accomplishing the financial and operating targets set in the 2017-2021 Business and Management Plan has been acknowledged.

The positive outlook is an indication that over the next 18 months, further upgrades are a possibility, provided the company's liquidity and overall credit risk continues to improve.

Pedro Parente, Pedro Parente said, “Moody’s upgrading of Petrobras credit rating acknowledges the intense work that has been done to improve operational indicators, and the effort to cut the company’s debt. It shows that we are on the right path, but also indicates that things are at an early stage and there’s still a lot to be done,” said Petrobras president, Pedro Parente. PWKD12042017

Last modified onThursday, 13 April 2017 04:34
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