Petrobras Debt Risk Climbs to Highest in 18 Months
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Petroleo Brasileiro SA is losing investor confidence on concern its credit rating will be cut after a Brazilian plan raised the relative risk associated with the state-run oil producer’s debt to the highest in 18 months.
Five-year credit default swaps on Petrobras, as the company is known, cost 177 basis points, or 1.77 percentage points, compared with 113 for contracts on Brazil debt, according to prices compiled by CMA DataVision. The spread is at 64 basis points, the widest since January 2009. Petrobras is graded two levels higher than the government by Moody’s Investors Service.