Petrobras Debt Losing to Pemex on Galp Purchase: Brazil Credit
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Investor perceptions of Petroleo Brasileiro SA’s credit are worsening relative to Petroleos Mexicanos as the Brazilian oil producer’s pursuit of a stake in Galp Energia SGPS SA may add to the biggest debt level in the energy industry.
The cost of protecting Petrobras debt against non-payment for five years with credit default swaps widened above that on Pemex bonds to a four-week high of 0.24 percentage point, or 24 basis points, last week, when Petrobras confirmed that it’s considering the acquisition.