Petroleo Brasileiro S.A. - Petrobras (PBR)

[lecorb]

PBR:Moody's: Transierra's ratings not affected by nationalization
Global Credit Research - 11 Aug 2014
Buenos Aires City, August 11, 2014 -- Moody's Latin America said that the Ba3/Aa1.bo ratings of Transierra S.A. remain unchanged following the recently announced nationalization.



On August 5, 2014 Transierra announced that Petrobras Bolivia Inversiones y Servicios S.A. (Petrobras) and Total E&P Bolivie -- Sucursal Bolivia (Total) had transferred their interest in the company to YPFB (Yacimientos Petroliferos Fiscales Bolivianos), within the Ley de Empresa Pública (Public Companies Law Framework).

The virtual nationalization of the company was completed by the transfer of 44.5% of the shares previously belonging to Petrobras and 11% belonging to Total (adding up to a 55.5% interest) to YPFB, the Bolivian state-owned oil and gas company. YPFB Andina will keep its 44.5% interest. Consequently, the Bolivian government will indirectly own 78% of Transierra through YPFB. The transaction price amounted to U$S 133 million.



This transaction has no impact on Transierra' Ba3/Aa1.bo ratings because its credit profile will continue to be supported by the company's sound business model, stable cash flows from capacity payments and strong credit metrics. In addition, the ratings will continue to be supported by the strategic importance of the pipeline to transport Bolivian gas to Brazil as outlined under the Bolivian-Brazilian bi-lateral gas supply agreement (GSA).



Transierra's Ba3 rating is at the same level of the sovereign and therefore ownership from YPFB, fully owned by the government, has no impact on current ratings.



For further information please see the ratings tab on the issuer/entity page on www.moodys.com



This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.



Daniela Cuan
Vice President - Senior Analyst
Infrastructure Finance Group
Moody's Latin America
Ing. Butty 240
16th Floor
Buenos Aires City C1001AFB
Argentina
JOURNALISTS: (800) 666 -3506
SUBSCRIBERS: (5411) 5129 2600


William L. Hess
MD - Utilities
Infrastructure Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653


Releasing Office:
Moody's Latin America
Ing. Butty 240
16th Floor
Buenos Aires City C1001AFB
Argentina
JOURNALISTS: (800) 666 -3506
SUBSCRIBERS: (5411) 5129 2600

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