S&P Boosts Petrobras Credit Rating

Standard & Poor's Ratings Services raised the credit rating of Petrobras PBR, Brazil's state-run oil company, to ''BBB'' from ''BBB-'' following an upgrade of Brazil's sovereign debt to ''BBB.'' The ratings agency has a stable outlook on the Brazilian oil giant. ''...We view Petrobras' likelihood of extraordinary government support as 'very high,' which, under our criteria, leads us to revise the ratings on the company as a function of the foreign currency sovereign upgrade,'' S&P said, according to Reuters. S&P maintained a stand-alone credit profile on Petrobras of ''BBB-.'' The ratings agency said it expects its ratings on Petrobras will move ''in tandem'' with Brazil's sovereign debt. Petrobras American depositary receipts have lost more than 48% of their value in the past two years, a slide that is the worst among global integrated oil stocks.