NEW YORK, April 16 (IFR) - Latin American credit markets put in a mixed performance Thursday as investors cut some exposure to Brazilian oil company Petrobras after a substantial run-up in the credit.
While accounts have found some relief in expectations that audited financials will be released by month's end, many feel good news has largely been priced into the Petrobras story at this stage.
"We are neutral across asset classes and would look at further strength as an opportunity for investors to reduce risk on Petrobras bonds," said a bank in a note to clients today.
A second downgrade to junk - after Moody's rating action January - is still a possibility over the next 12 months given Petrobras's weak fundamentals, it added. Petrobras's investment spending is expected to be 20% lower over the next five years, Reuters reported today, citing a source at the company.
http://www.reuters.com/article/2015/04/ ... 4320150416