By Brazil Stock Guide — Fitch Ratings has upgraded Petrobras’s standalone credit profile to “bbb+” from “bbb,” its first improvement in that assessment since 2020, according to a statement released by the Brazilian oil producer on Wednesday (November 4). The upgrade reflects a more favorable assessment of the company’s underlying credit strength.
According to the statement, Fitch attributed the upgrade to the effectiveness of Petrobras’s governance and management, supported by a clearer track record of board oversight and transparency.
The agency also highlighted the company’s operating and financial performance, underpinned by substantial reserves, production scale, strong cash generation and low leverage. These strengths put Petrobras on a comparable footing with international investment-grade oil and gas companies, according to the assessment cited by the company.
The standalone credit profile, or SCP, assesses a company’s underlying creditworthiness. The upgrade to “bbb+” improves that assessment but does not change Petrobras’s global credit rating, which Fitch affirmed at “BB” with a stable outlook. The agency also maintained its Brazilian national-scale rating at “AAA(bra).”
Petrobras’s global rating remains constrained by Brazil’s sovereign rating, despite its stronger standalone profile. The recognition of improved governance and financial strength therefore does not restore the company’s global rating to investment grade.
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