Fitch Upgrades Petrobras Rating to BBB

Petrobras, announced that Fitch Ratings has upgraded the foreign currency debt rating of Petrobras and of its wholly-owned subsidiary PfiCo (Petrobras International Finance Co.) from BBB- to BBB with a stable outlook.

According to Fitch, the upgrade in Petrobras' risk rating reflects its improved operating and financial performance and the strengthening of Brazil's macroeconomic and fiscal policy fundamentals.

The rating reflects the material reserve volume, leadership position in the industry, greater transparency with the market, and improved corporate governance practices of Petrobras, in addition to the favorable oil and oil products prices in the international market.

Furthermore, the agency states that the recent discoveries made in the pre-salt exploratory frontier, over and beyond the company's new position as a net oil and oil products exporter, a shift that took place in 2005, will reinforce Petrobras' position even more in the global oil and gas industry.