LatAmOil: Petroperu faces financial uncertainty despite government aid

Petroperu, Peru’s state-owned oil company, continues to struggle financially despite receiving substantial government support. The Peruvian government recently stepped in with a financial rescue package, which Fitch Ratings has acknowledged as a positive step to prevent default.

However, Fitch also highlighted that this aid does not address the company’s long-term challenges or improve its leverage metrics, raising concerns about its future sustainability.

The Ministry of Economy and Finance (MEF) will cover debt payments for the remainder of the year, including capitalising a $750mn loan and providing an additional $800mn in financial support. As a result, Petroperu’s bonds, particularly those maturing in 2047, saw a notable rise, trading at a three-cent increase.

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