- Petrobras (PBR -5.9%) bonds plunged the most on record after Moody’s late yesterday downgraded the oil company's debt ratings to the edge of junk status - the agency's third downgrade of PBR in four months - and said the ratings remain on review for a further cut.
- Moody’s said it downgraded PBR’s unsecured debt to Baa3 from Baa2 and cut the baseline credit assessment to ba2 from ba1, based on “concerns about corruption investigations” and "uncertainty about the timely delivery of audited financial statements [that] could lead to significant liquidity pressures.”
- The ratings agency also cited PBR's lack of progress in disclosing writedowns related to the ongoing corruption probe as "not an encouraging sign for the timely release of audited year-end financial statements."