The recapitalization plan of Petroleo Brasileiro, designed to fund epic growth, is on strong footing, according to a release by Moody’s Investors Service.
Securitization pros are keeping a close eye on the oil giant. The financing needs of suppliers, drill ship operators and other companies working with Petrobras is rising hand-in-hand with the oil company’s expansion. A number of structured deals in these areas were completed last year. (see "Petrobras at Helm..." ASR 11/1/10)
Its capital budget for 2010-2014 is $224 billion, “among the most ambitious energy spending programs in the world,” said the agency, which has Petrobras’ local currency rating at ‘A3.’
Moody's added that company could invest over $50 billion this year, which would outstrip its cash flows even as production rises. Last year the company tapped equity markets for a historic $68.3 billion, while also taking on additional debt.