actually just occured to me that with shale diminished, the biggest risk adjusted trade is actually on WTI reversing discount and trading normal premium to Brent again
Quick update on Petrobras that we discussed in another thread:
(17-12-2014, 10:45 AM)specuvestor Wrote: [ -> ]It suddenly just occurred to me that a good example how a pte enterprise, excluding the banks, can have a moral hazard as well is Petrobras.
Petrobas has debt that is roughly 1/3 of Brazil's foreign reserves. With oil crash I think it is an accident waiting to happen.
http://www.valuebuddies.com/thread-5237-...#pid103337
(Bloomberg) -- Petroleo Brasileiro SA, the Brazilian oil
producer mired in the country’s largest-ever corruption
investigation, is a step closer to seeing its credit rating cut
after Moody’s Investors Service placed it under review.
Petrobras’s Baa2 rating, the second-lowest investment
grade, may be lowered as concern mounts about the company’s
ability to raise cash amid delays in releasing financial
results, Moody’s said in a statement today. On Dec. 3, it
reduced the state-run company’s baseline credit assessment,
which doesn’t take into account government support, to junk.
The producer, which has posted negative free cash flow in
every quarter since 2010, has twice delayed quarterly financial
statements as it works to adjust the value of assets to account
for costs tied to the corruption investigation. The Rio de
Janeiro-based company must report unaudited results by the end
of January to avoid violating agreements on some bonds, which
may prompt creditors to demand their money back.
The corruption probe dates to March, when police began
arresting people suspected of money laundering and other crimes.
Several figures subsequently turned state’s witness. In their
testimony, much of which has been released by the court in
charge of the case, they describe a cartel of construction
companies that for years fixed bids on Petrobras contracts and
paid bribes to executives at the oil producer.