Grantham Mayo Van Otterloo & Co. says Petroleo Brasileiro SA is too strategic for the state to let it default and the earlier selloff in the Brazilian oil producer’s longest-dated bonds made them attractive.
Petrobras has been battered by plunging crude prices, a corruption scandal enveloping its executives, a strike that curbed production and disappointing drilling results. But there’s little chance Brazil’s government will let the state-controlled company default, given its importance to the nation, according to Tina Vandersteel, the co-head of emerging market debt at Boston-based GMO, which oversees $104 billion in assets.
Brazil Energy Insight 
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