MercoPress. South Atlantic News Agency
Rousseff lashes out at Moody's for downgrading Petrobras debt to junk-bonds
“It's a lack of knowledge about what's happening at Petrobras. I have no doubt this is a company with a great ability to recover without major consequences” 
Petrobras' shares were down by more than 6% on Wednesday on the Sao Paulo Stock Exchange. Brazilian President Dilma Rousseff on Wednesday said credit rating agency Moody's Investors Service downgraded state-controlled oil giant Petrobras' debt to junk-bond territory due to ignorance of the company's situation.
”It's a lack of knowledge about what's happening at Petrobras. I have no doubt this is a company with a great ability to recover from (an ongoing corruption scandal) without major consequences,“ Rousseff said during a ceremony in which homes were delivered to low-income people in the northeastern city of Feira de Santana.
Moody's on Tuesday lowered Petrobras' credit rating by two notches to Ba2, two levels below investment grade, a downgrade that comes amid a federal investigation into allegations that a cartel of construction firms paid kickbacks to the company for many years.
Petrobras' shares were down by more than 6% on Wednesday on the Sao Paulo Stock Exchange.
Rousseff, in remarks to reporters, said she sees no risk that Brazil's sovereign credit rating will fall victim to ”contagion“ in the wake of Petrobras' downgrade.
Rousseff's administration recently restored a fuel tax and has taken other measures to balance the budget and preserve Brazil's investment-grade credit rating.
Moody's, which became the first of the big-three rating agencies to classify Petrobras' debt as junk, said its downgrade reflects ”increasing concern about corruption investigations and liquidity pressures that might result from delays in delivering audited financial statements.“
That was a reference to PricewaterhouseCooopers' refusal to certify Petrobras' financial statements.
Moody's also said it expects ”the company will be challenged to make meaningful reduction in its very high debt burden over the next several years.”
Petrobras, which represents 12% of Brazilian GDP, is under investigation following disclosure of widespread corruption said to have cost the company billions of dollars since the mid-1990s.
Erstwhile Petrobras directors and former top executives of seven construction companies are among those who have already been formally charged in connection with the scandal.
The scandal, in which money also was allegedly funneled to politicians from Lula da Silva's ruling Workers Party, has led to the resignation of top company executives, including Maria das Gracas Silva Foster, who was replaced as Petrobras' CEO by Aldemir Bendine, former chief executive of state-run bank Banco do Brasil.
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Read all comments“Rousseff, in remarks to reporters, said she sees no risk that Brazil's sovereign credit rating will fall victim to ”contagion“ in the wake of Petrobras' downgrade.”
Feb 26th, 2015 - 10:54 am 0So now DumbAss Dilma can see the future?
The way things are going she and her corrupt government will be lucky if they are not chucked out on their ears.
Riots after trucking strike due to lay-offs, etc.?
There are no US or European significant investors (except Portuguese) at Petrobras. So no matter anything to us what the United States think or not think. In addition Petrobras will not take any new funding or capitalization until the BRICS rating agency is acting, that because any future funding will have 5% or 10% of the amounts directed to the Shanghai Stock Exchange, not for NYSE. Of course the other 90% will be directed to our BOVESPA.
Feb 26th, 2015 - 11:07 am 0With respect to debentures issued in dollars on the New York Stock Exchange, 80% of investors are pension funds and Brazilian investment funds. The debentures issued in New York is 5% of the values in debentures launched on the Stock Exchange of São Paulo. It could not be different as 5% stake in Petrobras is traded on the NYSE. But, I repeat, those who invested were the Brazilians.
Therefore, a US rating agency does not have any credentials, feedback or legitimacy to any analysis of Petrobras.
The downgrade is worth less than a fart!
In fact, it yes, it for us to know a bit of the United States. As for us to be certain that this is not the way of speculation and manipulated values that we want to follow.
Soon the US rating agencies will lower our sovereign debt also. Who cares!
Hmmm, reads like the literate version of Brasso.
Feb 26th, 2015 - 11:57 am 0http://i1290.photobucket.com/albums/b521/imoyaro/chopperlaff_zpsryuikyku.gif
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