Petrobras walks the debt/capital tightrope

By:
Rob Dwyer
Published on:

When Brazil’s national oil and gas champion raised $70 billion from a capital increase in 2010, it was trumpeted as a once-in-a-decade event. But as Petrobras nears its self-imposed leverage thresholds, its capital position looks compromised. A sharp cut to its rating or a return to the equity markets looks likely. So why is Brazil’s banking community so scared to discuss it?