The Rising Influence of Rising Affluence

[DewDiligence]

PBR—If you thought things couldn’t get any worse, you were wrong!

http://www.wsj.com/articles/perfect-storm-at-petrobras-the-worlds-most-indebted-oil-company-1447944976

Brazil’s state-run oil firm Petróleo Brasileiro SA spent much of the past decade loading up on cheap foreign credit in its drive to become a top-five global oil producer.

The company has yet to reach its lofty production targets. Instead, Petrobras attained a more dubious title: the world’s most-leveraged oil company, with $127.5 billion in debt as of Sept. 30.

Now, the bill is coming due. Loans of nearly $24 billion mature in 2016 and 2017. Investors and analysts are fretting about what’s next: repayment, restructuring or default.

Also see #msg-51214642.