Petrobras Bondholders Left Unscathed After $12 Billion Equity Rout.

Petrobras, the state-owned oil producer in Brazil, experienced a significant drop in market capitalization after deciding to skip a special dividend due to political pressure from President Luiz Inacio Lula da Silva. However, bondholders have not been affected, with Petrobras bonds remaining relatively stable since the announcement. The company's net debt has increased, but it is still considered the most solid borrower in Latin America's oil industry. Analysts believe that Petrobras can handle volatility caused by government actions for several years and that there are no signs of cash constraints to pay bonds. The company is now focusing on renewable energy projects under the Lula administration. [Extracted from the article]