Fitch on new loan to Petroperú: measure is positive, but not enough

After the Government’s approval for a new debt of US$1.3 billion in favor of PetroperuFrom Fitch Ratings they indicated that this state-guaranteed loan is a positive measure because the absence of immediate action “could have had serious consequences.”

However, the agency assures that it has a limited scope considering that Petroperú has a negative rating due to the lack of state support.

“It still falls short in the context of Fitch’s rating opinions, as it provides relief in the immediate term, but it does nothing to address the company’s (Petroperú) already excessive leverage,” commented Adriana Eraso, Fitch’s corporate director for Latin America.

Fitch points out that the conditions of the guarantees and loans in favor of the state oil company seek to improve efficiency and governance, but their effects “will not be visible or measurable in the short term” and will not affect their opinion on the company’s rating. Petroperu.

Debt for US$1.3 billion

Through an extraordinary regulation, a loan with a state guarantee for US$1.3 billion was authorized for Petroperuso that it has working capital to maintain inventory levels that guarantee the continuity of fuel supply and development of its economic activities at the national level.

According to the Minister of Energy and Mines, Rómulo Mucho, this money will be used “practically” to assume the debts carried by the state oil company and to “make it non-stop.”