Petrobras (PBR)

Moody’s maintains Petrobras' foreign currency and Investment Grade ratings

(Rio de Janeiro, June 18 2009). – PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that Moody’s Investor Services has maintained the Baa1 currency debt rating of both Petrobras and of its wholly owned subsidiary PifCo (Petrobras International Finance Company).

According to Moody’s, there has been no change in the credit quality and Country Risk ratings, items which are taken into account while determining the foreign currency rating, or in the Company’s leading position in the oil and gas sector.

Additionally, the agency highlighted that the 2009-2013 Strategic Plan foresees a significant increase in investments and creates a greater funding needs for the upcoming years, as announced by Petrobras. It considers, however, that the Company is actively managing its funding needs and that the potential increase in its debt in the next few years does not compromise its rating, given the expected production growth and Petrobras’ current low level of leverage. Moody’s emphasized the Company’s flexibility to adjust its Investment Plan to manage leverage in response to changing industry conditions.

Moody’s confirmed Petrobras’ national Aaa.br rating, but revised its global local currency rating from A2 to A3. According to the agency, this revision was made on account of the higher degree of correlation between the Company and the Brazilian Government, as indicated by the loan provided by the Brazilian National Development Bank (BNDES), according to Moody’s analysis.

Petrobras reasserts its commitment to maintain its capital structure at levels that are compatible with the investment grade, considering that the execution of its Business Plan will lead to a significant increase in the company’s oil and natural gas production, which is expected to reach 3,6 million boed in 2013 and 5.7 million boed in 2020.

It also emphasizes that, based on the price assumptions of its Business Plan, which are aligned to the current prices, and considering the funds that have already been raised in 2009, for a total of $31 billion, the Company’s investment plan is fully funded through 2013 and that current debt maturity profile is well distributed, ensuring the projected growth will take place sustainably.

www.petrobras.com.br/ri/english
Contacts: PETRÓLEO BRASILEIRO S. A. – PETROBRAS
Investor Relations Department | E-mail: petroinvest@petrobras.com.br / acionistas@petrobras.com.br
Av. República do Chile, 65 – 22^nd floor - 20031-912 - Rio de Janeiro, RJ | Tel.: 55 (21) 3224-1510 / 9947

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