09 December 2010

BRASIL: Petrobras Shares Sell-Off After $40 Billion Debt Plans Revealed.

BLOOMBERG/
  Petrobras CEO Jose Sergio Gabrielli (pictured) announced plans to raise between $30 billion and $40 billion of new debt over the next four years to finance oil investments. Petrobras already has $67 billion of  debt.
   The announcement has sent bond yields climbing the most in 12 months.
   Petrobras shares have declined 6.7 percent in the past month, leaving them down 31 percent so far this year.
   Moody's rates Petrobras Baa1, the third-lowest investment grade and two steps above the Brazilian government’s Baa3 grade.