Moody's rates PIFCo papers Ba2

Credit rating agency Moody's Investors Service has assigned a Ba2 senior unsecured rating to global step-up notes due 2003 issued by Petrobras International Finance Company (PIFCo). The rating outlook is stable. PIFCo is a Cayman Islands-registered subsidiary of Brazil's federal energy company Petrobras that imports crude oil and crude products into Brazil. The Ba2 rating reflects the benefit of credit support provided by Petrobras under the terms of a standby purchase agreement, Moody's said. This agreement obligates Petrobras to purchase from the noteholders their rights to receive payments due on the notes from PIFCo in the event of nonpayment. The long-term foreign currency debt rating of Petrobras is Ba2, and its rating outlook is stable, Moody's continued.