Petrobras Cut to Junk by S&P Following Brazil Downgrade
- Rating company also set negative outlook for oil producer
- Decision seen leading to selloff by institutional investors
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Petroleo Brasileiro SA was downgraded to junk by Standard & Poor’s, which signaled the possibility of more cuts to come.
The world’s most-indebted oil producer’s rating was cut two levels to BB, a day after S&P reduced Brazil’s sovereign debt to speculative grade for the first time in seven years. The outlook for the company’s rating is negative.