Fitch reaffirms Petrobras' BB and raises autonomous credit profile to bbb+
The agency maintained a stable outlook and linked the state-owned company's rating to the sovereign rating, while the Union continues with 50.3% of the votes.
BY THE X-TRADER NEWS NEWSROOM · REPORTING FROM INFOMONEY · 2 MIN
Fitch reaffirmed Petrobras' long-term ratings at BB, both in foreign and local currency, with a stable outlook. According to InfoMoney, the agency also maintained the state-owned company's long-term national rating at AAA(bra), with the same perspective. The most relevant movement, however, was another: the company's autonomous credit profile, the SCP, rose from bbb to bbb+.
The SCP measures the financial strength of the company in isolation. When justifying the increase, Fitch cited improvements in governance and management effectiveness, solid cash generation and low leverage. These are points that stock market investors usually monitor when evaluating a state-owned company, because they show the company's ability to support itself with its own accounts.
The agency, however, did not disconnect Petrobras from the country. She linked the decision to Brazil's sovereign rating, which is at BB with a stable outlook. In practice, the company's rating continues to be referenced to the federal government's rating, and any change in the sovereign becomes a variable to consider.
There is also a point of attention that the news itself brings. The federal government holds 50.3% of Petrobras' voting rights and can influence the state-owned company's strategy and investments. For those who defend regulatory predictability and less State interference in the economy, this is the aspect that requires monitoring, even with the operational improvement highlighted by the agency.
What changes for the investor
The maintenance of the ratings and the increase in the SCP indicate that Fitch sees the company as having more solidity, a reading that may be associated with a lower credit risk. The note, however, does not alone define the behavior of the action. Investment policy, the distribution of results and decisions that pass through public control also weigh heavily. It is worth observing whether governance and management will sustain the improvement cited by Fitch and whether Brazil's rating remains stable, as it serves as a reference for the state-owned company.
Automatically translated from Portuguese.
