Petrobras scandal hits Brazil builders' credit ratings

Sao Paulo

A GRAFT investigation at Brazilian state-run oil company Petroleo Brasileiro SA (Petrobras) is hurting the credit outlook for major suppliers accused of participating in the alleged bribery scheme, Moody's Investors Service said on Tuesday.

Moody's downgraded its rating of Mendes Junior Trading e Engenharia SA to B3 from B2 and put a negative outlook on the rating for both the engineering company and construction conglomerate OAS SA. Executives at both companies were arrested on Friday after police raided their offices in search of evidence that they had skimmed billions of dollars off Petro…