Fitch affirmed PE's Argentine national scale rating at AA- (arg), its international local currency rating at B and its foreign currency rating at BB-. All ratings have a stable outlook.
PE's ratings incorporate its solid credit profile, significant oil and gas reserves, geographic diversification of its assets and significant cash generation outside of Argentina, the statement said.
However, the international ratings continue to be constrained by the Argentine sovereign environment.
Currently a high level of uncertainty also exists as to the company's activities in Venezuela, which represent approximately 30% of PE's Ebitda and oil production.
The measures adopted in 2005 by Venezuela's government, including forcing oil companies to accept new joint ventures controlled by state oil firm PDVSA, "could have a material impact on the cash flow generation of the company," Fitch said.
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