Standard & Poor’s Improves Petrobras’ Rating

Instant Max AI

(Petrobras, 11.Feb.2017) – Petrobras announced that the credit rating agency Standard & Poor’s raised its rating for the company’s corporate debt to ‘BB-‘ from ‘B+’ and changed its outlook to stable from negative.

The agency stated that the improvement in Petrobras’ rating reflects the evolution of its liquidity and a robust cash position that confers greater capacity to handle eventual liabilities. The recovery in the relationship with domestic and foreign banks and in Petrobras’ capacity to access capital markets was also highlighted by the agency, which considered debt management operations to be positive. The progress in the Divestment Program and the perspectives to reach the targets set for 2017 and 2018 were also emphasized.

Standard & Poor’s further stressed the management’s focus on profitability, a more balanced capital structure, and the commitment to deleverage the company, as well as the consistency of the new Pricing Policy, which enables greater visibility over Petrobras’ cash flow.

The agency has also reinforced the progress in corporate governance and the measures adopted to improve internal controls, relationship with suppliers, and decision-making processes.

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