Petrobras Crowned New King of Junk Bonds After Rating Downgrade

  • Brazilian oil producer has $56 billion of outstanding debt
  • S&P downgraded company to junk a day after cutting sovereign
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There’s a new king in the $2 trillion global junk bond market.

Brazil’s state-owned oil producer Petroleo Brasileiro SA, with $56 billion of outstanding securities, has become the world’s largest non-investment grade corporate issuer after Standard & Poor’s cut its credit rating seven months after a similar move by Moody’s Investors Service.