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There’s a new king in the $2 trillion global junk bond market. Brazil’s state-owned oil producer Petroleo Brasileiro SA, with $56 billion of outstanding securities, has become the world’s largest non-investment grade corporate issuer after Standard & Poor’s cut its credit rating seven months after a similar move by Moody’s Investors Service. The Rio de... Continue Reading →
Petrobras Cut to Junk by S&P Following Brazil Downgrade Paula Sambo September 10, 2015 — 5:02 PM BRT Reuters S&P joins Moody's in taking away Petrobras investment grade Rate cut could lead to selloff by institutional investors Petroleo Brasileiro SA, the oil producer mired in Brazil’s largest-ever corruption investigation, was downgraded to junk by Standard... Continue Reading →
Brazilian credits were rebounding Thursday from earlier lows after S&P downgraded the country, which is facing its worst economic crisis in decades, to junk. Troubled state oil giant Petrobras saw its 2024s widen 40bp-50bp on the news of the downgrade on Wednesday before tightening to 695bp-685bp. The sovereign's five-year CDS was trading at around 390bp... Continue Reading →
Petroleo Brasileiro SA’s investment plans will be at risk if Standard & Poor’s downgrades the state-controlled producer to junk as it did with Brazil’s sovereign rating, said analysts at HSBC Holdings Plc and BTG Pactual. Petrobras plans to invest $108.6 billion on exploration and production through 2019, or 83 percent of its business plan, to... Continue Reading →
Brazil is junk -- again. Seven years after Standard & Poor’s lifted the nation’s credit rating to investment grade, reflecting the rising influence of emerging markets, Latin America’s largest economy has lost its vaunted designation. S&P’s decision late Wednesday to cut Brazil’s rating one step, to BB+ with a negative outlook, underscores its worsening economic and... Continue Reading →
Brazil had its credit rating cut to junk by Standard & Poor’s on Wednesday after the close of markets, with a negative outlook. The downgrade sent the ETF that tracks Brazilian shares plunging in late trading. Here’s what lawmakers and investors are saying: MARKET REACTION: * Brasil Plural: "If the timing of the downgrade was... Continue Reading →
Standard & Poor's downgraded Brazil's credit rating to junk grade on Wednesday, further hampering President Dilma Rousseff's efforts to regain investors' trust and pull Latin America's largest economy out of recession. The faster-than-anticipated downgrade from investment grade will likely rock Brazilian financial markets on Thursday and will increase borrowing costs for the government and Brazilian... Continue Reading →
After months of trying to shore up Brazil's public finances, President Dilma Rousseff now faces political and business pressure to ease up on painful austerity measures in a country long hooked on the helping hand of a big state. Business leaders have supported the beleaguered Rousseff as she faces growing calls from political foes for... Continue Reading →
The Brazilian stock market, Bovespa, is down over 54% for the year to U$518 billion. The market value of the stock market is inferior to what Apple is worth in the NYSE which is U$640 billion. The these last 12 months the Bovespa value has tumbled from U$1.14 trillion to U$518 billion. Recession, currency devaluation,... Continue Reading →
The local currency advanced after China, Brazil’s largest trading partner, pledged to accelerate construction of some major projects and reduce companies’ tax burdens. The real also gained as President Dilma Rousseff’s administration was said to be studying a tax increase on Brazil’s top earners to raise revenue and narrow an expanding budget deficit. The real appreciated... Continue Reading →
