Moody’s reviews Petrobras’ global ratings
Petrobras informs that Moody’s Investors Service reviewed Petrobras’ global foreign currency debt ratings from Baa3 to Ba2. This rating is still on review. With this grade Petrobras is no longer an Investment Grade company for Moody´s.
According to Moody´s, this revision reflects concerns with the ongoing investigation of corruption and possible liquidity pressures that may arise if the Company is not able to timely deliver its audited financial statements.
Moody´s also affirms that the Company may go through challenging times in order to reduce its debt in the coming years and may need more time than previously expected to reduce its leverage. Moody’s affirms that will consider further developments in the ongoing investigations and the progress towards normal production of financial statements. The agency also takes into account the possibility of government support, in case of need, and states that Petrobras’ rating would be sensitive to any change in the government’s rating.
Petrobras does not have any covenants related to rating downgrades or to losing its investment grade status.