Moody's improves the risk rating of Petrobras

10/17/2017

Rio de Janeiro, October 17, 2017 - Petróleo Brasileiro S.A. - Petrobras reports that the rating agency Moody's updated the company’s corporate debt from B1 to Ba3 and changed the outlook from positive to stable.

Moody's highlighted significant improvement in Petrobras’ liquidity profile, the leverage reduction, sound management discipline and the strengthening of corporate governance.

The agency further emphasized the greater predictability in cash flow of the company, as a result of more stable oil prices, a clear policy for fuel prices, decreasing operating costs, and discipline in capital allocation, which enabled the increase in production and better margins in the Exploration and Production business.

Lastly, the agency reported that the stable outlook indicates Moody's view that Petrobras’ credit profile will continue to improve gradually, although offset by the negative outlook of the rating for Brazil (Ba2).