Another stark warning sign started flashing this week over the mounting stress in the Brazilian offshore market, after state-owned oil giant Petrobras received a downgrade from Moody’s.
The move, which affects all ratings for Petrobras, means it has lost its classification as an investment-grade company from the ratings agency.
The downgrade covers debts based on Petrobras guarantees, including a cut of the company’s senior unsecured debt to “Ba2” from “Baa3”, a “Ba2” corporate family rating (CFR) and a lowering of its baseline credit assessment (BCA) to “b2” from “ba2”.
