Moody’s Investors Service on Tuesday night upgraded Brazilian government-run oil company Petrobras from B1 to Ba3, with a stable outlook. The rating is still in speculative territory and is three notches below investment grade. Moody’s said it was changing the rating because of improvements in Petrobras’ finances and management policies. Moody’s noted that the company’s liquidity position has improved over the past year. The company has been able to raise funds in overseas markets in order to replace expensive short-term debt with longer term bonds. New management policies, including market-based pricing, have improved revenues and cut costs.
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