Agency lowered the rating of the state oil company from BB+ to B+.
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The Fitch Ratings agency lowered Petroperú’s long-term issuer default rating in local and foreign currency to B+, which was previously at BB+.
The state-owned company’s senior unsecured notes also fell to B+ and the standalone credit profile remained at ccc-. This reduction in levels is due to the explicit announcement by the government of Peru (BBB/Negative) that it will not support Petroperú in a way that is sufficient to modify the company’s weak capital structure.
“Additional government support is needed: Fitch does not expect the national government to support Petroperú in a way that is significant to its capital structure in the near term”they summarized.
They recalled that in 2022 Petroperú was supported in its “immediate” liquidity needs but none of these measures alleviated the structural problem of high debt.
Operational issues with the startup of the New Talara Refinery and the cash demands of acceleration resulted in “increased cash needs for 2024 that the government will need to finance.”
Trained at the Jaime Bausate y Meza University. In constant learning. Economics is the branch of journalism closest to the people and my duty is to be a bridge to information.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
