Moody’s Cuts Petrobras’s Debt to Junk

Moody’s Cuts Petrobras’s Debt to Junk

Ratings firm said it is keeping its review of Brazil-controlled energy company on review for downgrade

By

PAULO TREVISANI

Updated Feb. 24, 2015 7:32 p.m. ET

BRASÍLIA—Moody’s Investors Service said Tuesday it downgraded Petróleo Brasileiro SA ’s debt to junk status.

The embattled energy company controlled by the Brazilian government and known as Petrobras is enmeshed in a corruption scandal that has delayed its earnings reports.

Moody’s said it was cutting Petrobras’s ratings to Ba2, two steps into junk, and keeping its review for downgrade.

Petrobras couldn’t immediately be contacted for comments. The company has denied wrongdoing.

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