Petrobras' B2 ratings also consider Moody's joint-default analysis for the company as a governmentrelated issuer. Petrobras' ratings reflect Moody's assumption for a moderate likelihood of timely extraordinary support from the government of Brazil. Despite its stated willingness to stand behind Petrobras, Moody's believes that the government's current fiscal situation tempers its capacity to support Petrobras sufficiently to avoid a default. Moody's continues to assume moderate default dependence between Petrobras and the government. Petrobras' rating incorporates one notch of uplift between Petrobras' BCA and its senior unsecured rating. Petrobras' liquidity risk has declined over 2016 on the back of $13.6 billion in asset sales and around $10 billion in exchanged notes during the third quarter last year, which helped to extend the company's debt maturity profile. However, liquidity risk remains significant. As of September 30, 2016, Petrobras' maturing debt in fiscal years 2017 and 2018 was $7.9 billion and $13.5 billion, respectively, for a total of $21.4 billion in the next 2 years. In addition, the class action lawsuit, the US Securities Exchange Commission (SEC)'s civil investigation and the US Department of Justice (DoJ)'s criminal investigation related to bribery and corruption will negatively affect the company's cash position in an amount yet unclear. Other threats to Petrobras' liquidity, as well as to its operating and financial performance, include tax contingent liabilities, execution risk related to the 2017-21 business plan and potential delays in fully executing its asset sales plan. Petrobras' ratings have a stable outlook, reflecting Moody's expectation that, in the next 12 to 18 months, the company's liquidity and overall credit profile will gradually improve, supported by managerial focus on improvements in operations and capital allocation; further debt refinancing; and additional asset sales, despite the uncertainty around the payment of fines related to the class action lawsuit as well as the SEC and DoJ investigations. Positive rating actions could be considered if the company raises sufficient sums through asset sales or new debt arrangements to refinance its upcoming debt maturities and significantly strengthen its liquidity profile while also improving operating and financial performance. Although current low levels of capex in connection with asset sales would reduce future revenues and cash flow, actions that further strengthen the company's liquidity but also help improve operating margins and prospects of leverage reduction are currently likely to have a greater credit impact than possible reductions in production, revenues and reserve base. Negative actions on Petrobras' ratings could result from deterioration in its liquidity or financial profile. Downgrades could also be prompted if negative developments from the corruption investigations or litigation against the company appear to have the potential to significantly worsen the company's liquidity or financial profile. Petrobras is an integrated energy company, with total assets of $247 billion as of September 30, 2016. Petrobras dominates Brazil's oil and natural gas production, as well as downstream refining and marketing. The company also holds a significant stake in petrochemicals and a position in sugar-based ethanol production and distribution. The Brazilian government directly and indirectly owns about 46% of Petrobras' outstanding capital stock and 60.5% of its voting shares. [Moody's Investors Service, 9.Jan.2017]
Extraordinary General Meeting Approved the Sale of PetroquĂmicaSuape and Citepe Petrobras, in continuation to the material fact disclosed on December 28, 2016, informed that, the Shareholders’ Extraordinary General Meeting approved the sale of 100% of the shares held by Petrobras in PetroquĂmicaSuape and Citepe to Grupo Petrotemex S.A. de C.V. and Dak Americas Exterior, S.L, subsidiaries of Alpek, S.A.B. de C.V., for the amount of $385 million, which will be paid on the closing date, and it is subject to working capital, net debt, and recoverable taxes adjustments.