S&P cuts Brazil to junk status; bonds, Petrobras hit

London

BRAZILIAN bonds fell and shares of Petroleo Brasileiro tumbled in Germany after Standard & Poor's cut the sovereign's credit rating to junk, fuelling bets outflows will accelerate from this year's worst-performing Brics market.

Yields on Brazil's US$4.3 billion of 4.25 per cent bonds maturing in January 2025 climbed 13 basis points to 5.66 per cent by 8.38 am in London, the highest level since the notes were sold two years ago, after S&P lowered Brazil by one step to BB+ late on Wednesday. American depositary receipt…