S&P Upgrades Petrobras

S&P has raised Petrobras to BBB (stable) from BBB minus – one notch higher than the sovereign – to reflect improvement in the operating environment in Brazil and strong oil prices in the medium term, which have allowed the company to fund its aggressive capex program. “The upgrade also reflects Petrobras’ robust growth opportunities in the medium term, as the company starts exploring its promising new oil discoveries,” S&P says. The stable outlook reflects the expectations that Petrobras will sustain its satisfactory business position within the Brazilian hydrocarbon industry and will manage ongoing, large investments, the agency adds.