Petrobras' rating would be "junk" without government support, says Fitch.
After downgrading Petrobras' rating from BBB to BBB- with a negative outlook, Fitch Ratings maintains that the Brazilian state-owned company would be at least three notches lower than its current rating, in deeply speculative territory, if it weren't for expectations that the Brazilian government will bail out the oil company; Petrobras' assessment is linked to Brazil's sovereign debt rating, Fitch analyst Joe Bormann told Reuters.
RIO DE JANEIRO (Reuters) - Petrobras' credit rating would be at least three notches lower than it is now, in deeply speculative territory, if it weren't for the expectation that the Brazilian government will bail out the oil company, which has been affected by a corruption scandal, if necessary, a senior analyst at Fitch Ratings said on Friday, the 27th.
The state-owned company's assessment is linked to Brazil's sovereign debt rating, Joe Bormann said in an interview with Reuters.
Fitch rates Brazil BBB, with a stable outlook.
The agency downgraded Petrobras to BBB- from BBB earlier this month, leaving the new credit rating on negative watch, meaning another downgrade is possible within six months.
(Reporting by Walter Brandimarte)