Empresa Nacional del Petroleo's Proposed Senior Unsecured Notes For Up To $700 Million Rated 'BBB-'

SAO PAULO (S&P Global Ratings) July 24, 2024--S&P Global Ratings today assigned its 'BBB-' issue-level rating to Empresa Nacional del Petroleo's (ENAP; BBB-/Stable/--) proposed 10-year senior unsecured notes for up to $700 million. The company intends to use the proceeds--together with cash on hand that totaled $586 million as of March 31, 2024--to partially repay the $700 million outstanding international bond due in August 2026 and potentially the $560 million bond due in September 2031. We view the proposed issuance as a liability management initiative. ENAP proactively seeks to flatten its debt maturity peaks and extend the overall debt duration. This initiative has no impact on our existing 'BBB-' issuer credit rating, because the issuance won't increase debt. In addition,

...July 24, 2024 SAO PAULO (S&P Global Ratings) July 24, 2024--S&P Global Ratings today assigned its '###-' issue-level rating to Empresa Nacional del Petroleo's (ENAP; ###-/Stable/--) proposed 10-year senior unsecured notes for up to $700 million. The company intends to use the proceeds--together with cash on hand that totaled $586 million as of March 31, 2024--to partially repay the $700 million outstanding international bond due in August 2026 and potentially the $560 million bond due in September 2031. We view the proposed issuance as a liability management initiative. ENAP proactively seeks to flatten its debt maturity peaks and extend the overall debt duration. This initiative has no impact on our existing '###-' issuer credit rating, because the issuance won't increase debt. In addition, our base-case scenario already incorporates ongoing access to debt and capital markets as an alternative source of financing. We view the issuance as part of the company's plan to manage leverage and...

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