Petrobras: Moody’s improves our risk rating

Moody’s improves our risk rating

funcion_rio P53.jpgThe Moody’s rating agency has announced the upgrade of our corporate debt rating from B1 to Ba3, and that it has changed the outlook from positive to stable.

Moody’s highlighted in its report the material improvement in our liquidity profile, the reduction of leverage, the sound management discipline, and the strengthening of corporate governance.

The agency also emphasized the improved predictability in our cash flow because of more stable oil prices, of a clear policy for fuel prices, decreasing operating costs, and discipline in capital allocation, which allowed for increased production and better margins in the Exploration and Production business.
Finally, the agency said that the stable outlook indicates Moody’s view that our credit profile will continue to improve gradually, but it is counterbalanced by the negative perspective in Brazil’s rating (Ba2).