Brazil-based oil and gas exploration and production company Petro Rio S.A. raised R$2 billion through an equity follow-on earlier this year, which provided significant liquidity cushion for the company to continue its growth strategy through investing in revitalization processes, tiebacks, and productivity increases. The company's credit metrics have also improved, driven by increased profitability and production. On May 27, 2021, S&P Global Ratings assigned its 'B+' long-term issuer credit rating to Petro Rio and 'BB-' issue rating to its proposed senior secured notes. The '2' recovery rating on the notes indicates our expectation of substantial recovery (70%-90%) in case of a default. The stable outlook reflects our expectation that Petro Rio will maintain gross debt to EBITDA consistently below 3.0x
