Bailing-out state-controlled oil producer Petroleo Brasileiro SA could cost the government as much as $21 billion, according to research from Citigroup Inc.
That would be the amount necessary to plug the company’s cash hole and fix the capital structure on a sustainable basis were oil to fall to $20 for 12 months, Citigroup credit analysts including Eric Ollom wrote in a report Friday. The company, with $127 billion of bonds and loans, could see its ratio of net debt to earnings before items rise to what Citi called an “unsustainable level” of 6.5 times.
Brazil Energy Insight 
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