Petrobras Bonds Post Record Plunge as Rating Cut to Cusp of Junk
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Petroleo Brasileiro SA bonds had the biggest plunge on record after Moody’s Investors Service cut the rating of the most indebted publicly-traded oil company to the cusp of junk amid a graft probe.
Moody’s lowered its grade on debt from the oil producer one step to Baa3, the lowest investment-grade classification, and said the ratings remain on review for another cut. Moody’s said in a statement that it was concerned the investigation into alleged bribery at state-controlled Petrobras will make it difficult for the Rio de Janeiro-based company to get financing.