Fitch Joins Moody’s in Downgrading Petrobras to Cusp of Junk

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- Petroleo Brasileiro SA’s credit rating was cut to the cusp of junk by Fitch Ratings after the company at the center of Brazil’s largest-ever corruption probe wasn’t able to account for the financial impact of the alleged graft.

Fitch cut Petrobras one step to BBB-, the lowest level of investment grade, and placed the rating on watch negative, according to a statementBloomberg Terminal Tuesday. Moody’s Investors Service downgraded the state-run company to an equivalent Baa3 level on Jan. 29, citing concerns about liquidity pressures that might result from delays in delivering audited financial statements.