HALISTER1: Petrobras Asset Sale, Refinancing Better Than Expected: Moody’s

Petrobras Asset Sale, Refinancing Better Than Expected: Moody’s

(Bloomberg) -- Pace of Petrobras’s asset sales and debt refinancing was a surprise for Moody’s, Moody’s analyst Nymia Almeida says in interview.
  • “Positive news started in April, when the co. announced asset sales, and continued in May and June, with debt issuance”: Almeida
  • NOTE: Moody’s upgraded Petrobras rating to B2 from B3, outlook stable
  • A string of positive actions taken by the co. justifies the upgrade: Almeida
    • Return to capital markets also seen as positive
  • “I imagine we will continue to see Petrobras active in debt capital markets”
  • NOTE: Petrobras last sold bonds in July
  • Fuel price policy revision was not expected by Moody’s and was seen as positive, though was not the main driver for the upgrade
  • NOTE: On Oct. 14, Petrobras Lowers Fuel Prices to Stunt Import Competition
  • Ratings outlook is typically valid for 12 to 18 months, but if co. issues new debt and extends maturities, Moody’s could adjust grade accordingly: Almeida
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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PETR4 BZ (Petroleo Brasileiro SA)

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Nymia Almeida (Moody's Investors Service Inc)

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