“Worst is over”, says Minister Eduardo Braga on Petrobras' situation

Minister said, still, the state goes through a process of "strengthening".
11/09/2015 14h03 - Updated 11/09/2015 14h03
Photo: José Varella (Senate Agency)

The Mines and Energy Minister, Eduardo Braga, ranked Friday the loss of Petrobras' investment grade by Standard Agency & Poor's as a “temporary issue” and that, for him, O “worst is over”. This Thursday, the risk rating agency withdrew the good paying stamp of Petrobras and other 23 companies as a result of the credit note relegation (rating) from the country.

“I believe this is a temporary issue. We are with numbers at Petrobras that are increasingly robust and improving. Therefore, we are optimistic that the worst is over and that we are facing a process effectively recovery and strengthening”, the minister said.

Asked if the state – now in speculative land – would have more difficulties to get loans abroad, the minister said that the demand for state funding for contracts already “resolved”.
The minister spoke briefly to reporters just before meeting with the president of Petrobras and Vale Council, Murilo Ferreira, who declined to comment on the downgrade.

Braga also noted that the downgrade occurred because the budget text 2016 sent with deficit forecast to Congress. “This will reinforce the need for the Brazilian government to not only the cuts that are needed, in addition to those already made, but also study effectively what are the new sources of revenue that the country will need to balance its fiscal juste”, he said.

A S&P is the second of the three major agencies risk rating to downgrade the state to the speculative grade. In February, Moody's took the good paying stamp Petrobras because of petrolão investigations, which at the time delayed the release of the company's annual report.

Source: Veja.com

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