Rio de Janeiro, December 9, 2015 – Petróleo Brasileiro S.A. – Petrobras informs Moody’s Investors Service reviewed Petrobras’ rating from Ba2 to Ba3, with negative outlook.

According to Moody’s, this revision reflects elevated refinancing risks due to deteriorating industry conditions, difficulties to implement the divestment plan, high level of debt maturities in the coming years and the perspective for the company’s negative cash flow.

Furthermore, the decision to place Brazil’s government bond rating under review for possible downgrade was also considered.

Moody’s, in addition, shows concerns with the ongoing investigations related to the “Lava Jato Operation”, which require management time and attention and carry the risk of penalties.

Lastly, Moody’s affirms that Petrobras rating is supported by the company’s large-scale reserve, its dominance in the Brazilian oil industry and importance to the Brazilian economy, alongside its technological offshore expertise and potential for continued growth in production over the long-term.

Rio de Janeiro, December 9, 2015 – Petróleo Brasileiro S.A. – Petrobras informs Moody’s Investors Service reviewed Petrobras’ rating from Ba2 to Ba3, with negative outlook.

According to Moody’s, this revision reflects elevated refinancing risks due to deteriorating industry conditions, difficulties to implement the divestment plan, high level of debt maturities in the coming years and the perspective for the company’s negative cash flow.

Furthermore, the decision to place Brazil’s government bond rating under review for possible downgrade was also considered.

Moody’s, in addition, shows concerns with the ongoing investigations related to the “Lava Jato Operation”, which require management time and attention and carry the risk of penalties.

Lastly, Moody’s affirms that Petrobras rating is supported by the company’s large-scale reserve, its dominance in the Brazilian oil industry and importance to the Brazilian economy, alongside its technological offshore expertise and potential for continued growth in production over the long-term.