The state oil company’s grade dropped from B+ to B and requires “even more” support from the Government to prevent it from continuing to sink although it lacks “political and popular capital”
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As Fitch did a week ago, Standard & Poor’s reduced Petroperú’s rating, this time from B+ to B, which implies that the state company still has the capacity to meet its financial obligations but is more vulnerable and in the face of adverse conditions. , can be limited.
On the other hand, the company’s prices also decreased, now recording an independent credit profile (SACP) in ccc. Previously I was on ccc+. “It reflects a further deterioration in expected cash flow,” noted S&P Global Ratings. With this note, Petroperú depends on favorable conditions to meet its payments.
In the next three months, S&P threatens to reduce the rating to B-—placing Petroperú one step away from reaching ccc+—if the Government does not address its financing needs.
Otherwise, if it did not receive financial support from the MEF, not only would Petroperú default on its debts, but there would be reputational impacts for the Peruvian government. It is worth adding that a few days ago, Minister José Arista announced that they do not rule out giving more credits and guarantees to the oil company.
“More than two years since the crisis broke out, we believe there is very little visibility on how Petroperú will address its crises and the effectiveness of its management in doing so,” S&P noted.
In addition, they were alert due to the persistent doubt about the effective governance of Petroperú in the management of Dina Boluarte, which they branded as having “limited political capital and popular support”; and therefore the policy around support is “inefficient.”
S&P stressed that after the US$2.2 billion request made by the state oil company to the State due to its “fragile operating and financial conditions” and the operational problem in the flexicoking unit at the New Talara Refinery, this year’s EBITDA recovery is compromised. .
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.
