Moody’s downgrades Petrobras, debt

Moody's Investors Service said it downgraded all ratings for Petrobras (Petroleo Brasileiro SA) and ratings based on Petrobras' guarantee, including the company's senior unsecured debt and corporate family rating to B3 from Ba3.

The company's baseline credit assessment was lowered to caa2 from b3.

At the same time, Moody's downgraded Petrobras Argentina SA's ratings, including its senior unsecured medium term note program and corporate family rating to B3 from B2, in line with the senior unsecured rating of Petrobras.

The outlooks are is negative.

This action for Petrobras concludes the review for downgrade initiated on Dec. 9, which followed an action placing Brazil's government bond rating under review. The action follows Moody's downgrade of Brazil's government bond rating to Ba2 from Baa3.

The action on Petrobras Argentina concludes the review for downgrade initiated on Jan. 21, which was prompted by the agency’s revised expectations for weaker oil prices over the next several years.

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