real-time news and commentary for investors
Friday, Aug 30
S&P maintains Petrobras' investment-grade rating with negative outlook
- Standard & Poor's maintains its investment-grade credit rating on Petrobras (PBR) despite a deteriorating financial picture.
- Brazil's national oil company benefits from a very high likelihood of strong support from the government if needed, S&P says, and it should be able to fund its sizable capital expenses with internal cash flows, existing liquidity and access to long-term funding due to the high growth prospects for its E&P activities.
- PBR is rated BBB with a negative outlook, meaning the company could be downgraded should S&P reduce Brazil's sovereign credit rating.