The risk agency Moody’s Local maintained Petrobras’ credit rating () at “AAA.br”. In addition to reiterating the oil company’s rating, a stable outlook for the rating was maintained.
Moody’s justifies that the rating affirmation “continues to reflect its dominant position in the oil and gas sector in Brazil and its high operational efficiency, combined with a relevant level of proven reserves”.
The document also states that the rating incorporates Petrobras’ “prudent financial management” over recent years, which guaranteed healthy levels of gross leverage and a solid liquidity position. “We also consider the company’s strategic relevance to the country’s economy, being one of the main payers of taxes and dividends to the Union.”
However, Moody’s considers the Brazilian company’s exposure to variations in international oil prices and risks related to governance issues.
“Although we recognize advances in its structure, there is a governance risk related to potential interference in the conduct of the Company’s business, so that the Brazilian government, as its controlling shareholder, may prioritize political interests to the detriment of the profitability of its business”, says the document.
