On April 3, 2025, Fitch Ratings reaffirmed the credit ratings of Petrobras (PETR4) in both local and foreign currencies at 'BB', while maintaining its national rating at 'AAA(br)', all with a stable outlook. This decision reflects the company's strong position in the fuel supply market and its extensive hydrocarbon reserves, according to analysts Adriana Eraso, Lucas Rios, and Natalia O’Bryne.
Fitch's analysts noted that Petrobras demonstrates healthy financial metrics, characterized by consistent cash generation and a controlled cost structure. These factors contribute to maintaining low leverage, even amid fluctuating oil prices. "The agency expects the company to continue recording positive free cash flow while making sufficient investments to replace its reserves," Petrobras stated in a release.
Looking ahead, Fitch projects that Petrobras' production will reach 3 million barrels per day by 2027, bolstered by a successful campaign to renew its reserves and the commencement of operations on new platforms. This optimistic outlook aligns with the company's strategic goals and operational capabilities.
In a related development, on April 13, 2025, Fitch Ratings also reaffirmed the credit ratings of Klabin (KLBN11) at 'AAA(bra)' and 'BB+', maintaining a stable outlook for the company. Analysts Flávio Fujihira, Rodolfo Schmauk, and Martha Rocha highlighted Klabin's leadership in the national paper sector and its vast forest base as key factors supporting its creditworthiness.
Fitch believes that Klabin's cash flow generation will remain robust, thanks to its low production costs and strong demand in the paper and packaging segments. The agency emphasized that Klabin's solid liquidity and low refinancing risk further enhance its credit perspective.
Another significant move for Klabin was the acquisition of 150,000 hectares of land from Arauco in 2024, which is expected to positively impact the company's cash production costs. This strategic acquisition reflects Klabin's commitment to expanding its operational capabilities and maintaining its competitive edge in the market.
Both Petrobras and Klabin are navigating a complex economic landscape, marked by fluctuating commodity prices and evolving market demands. However, their strong financial foundations and strategic initiatives position them well for future growth.
As the energy and paper sectors continue to evolve, the ratings from Fitch serve as a testament to the resilience and adaptability of these companies. Investors and stakeholders will be watching closely to see how Petrobras and Klabin leverage their strengths to capitalize on emerging opportunities and mitigate potential challenges.
With Fitch's stable outlook, both Petrobras and Klabin are poised to maintain their positions as leaders in their respective industries, demonstrating the importance of sound financial management and strategic foresight in today's market.
