Fitch Ratings on Thursday affirmed the ratings of Brazil's state-owned oil company Petroleo Brasileiro SA, after this week's news that it will buy the No. 2 fuel distributor and refiner in Latin America.
The agency said ratings for Petroleo Brasileiro, or Petrobras, were supported by proved hydrocarbon reserves, increased output, offshore exploration and production, and a dominant domestic market position. Fitch said the company's outlook remained stable.
Petrobras on Monday announced plans to buy Ipiranga, a Brazilian fuel distributor and refiner, in a cash and stock deal valued at $5 billion with partners, petrochemical company, Braskem SA, and fuel distributor and refiner, Grupo Ultra.
The transaction is expected to close by the end of 2007.
Shares of Petrobras gained $2.06, 2.2 percent, to $95.39 in midday trading on the New York Stock Exchange, while shares of Braskem gained 10 cents to $15.87, also on the NYSE.
AP
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