Ibovespa Futures Fluctuate on Commodities Gain, Petrobras Rating

Ibovespa futures fluctuated between gains and losses as higher commodities prices boosted the outlook for Brazilian raw-material producers and Moody’s Investors Service cut Petroleo Brasileiro SA’s rating.

HRT Participacoes em Petroleo SA may move after Chief Executive Officer Milton Romeu Franke said the oil company is seeking a merger to raise capital. Car-rental company Localiza Rent a Car SA may move after HSBC Holdings Plc rated the stock the equivalent of buy in new coverage.

Ibovespa futures contracts expiring in October were little changed at 52,150 at 9:20 a.m. in Sao Paulo. The real climbed 0.3 percent to 2.1996 per dollar.

The Standard & Poor’s GSCI index of 24 raw materials advanced 0.4 percent as investors awaited the outcome of budget talks in the U.S., with a partial government shutdown entering a fourth day. Bill Gross of Pacific Investment Management Co. and BlackRock Inc.’s Larry Fink said the deadlock will be resolved soon, limiting damage to the economy.

Moody’s cut Petrobras yesterday to Baa1, the third-lowest investment grade rating, citing total debt that rose by $16.3 billion in the first half of the year to 3.8 times earnings before interest, taxes, depreciation and amortization, or Ebitda. Cash flow for the producer will remain negative into 2015, according to the e-mailed report yesterday, which maintained a negative outlook.

Brazil’s main equity index entered a bull market Sept. 9 after rising 20 percent from this year’s low on July 3 through that day. The gauge is still down 20 percent in dollar terms this year, compared with a decline of 4.6 percent for the MSCI Emerging Markets Index of 21 developing nations’ equities.

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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