Rousseff says Petrobras downgrade shows lack of knowledge

President Dilma Rousseff said today (Feb 25) that the credit rating agency Moody's Investors Service's  downgrading Brazil's state-controlled company Petrobras shows “lack of knowledge” about the oil giant, which should recover “without major consequences.”

“It shows lack of knowledge about what's going on at Petrobras. I have no doubt that it's a company highly capable of recovering from this, without major consequences,” the president said during an interview after the ceremony in which houses under the My House My Life program were delivered, in the state of Bahia.

The agency lowered Petrobras's grade from BAA3 to B2, bringing the state-run firm from an investment rating to a speculative rating, meaning that investing in the company has become a risky enterprise.

“The government will always try to avert a downgrade. That's just natural. We're sorry the agency did not act accordingly, but I think that's been overcome,” she added.

Translated by Fabrício Ferreira