S&P cuts Petrobras, Eletrobas credit ratings to BBB-

BRASILIA, March 24 (Reuters) - Standard & Poor's cut the ratings of Brazilian state-run oil company Petroleo Brasileiro SA PETR4.SA and Brazil�s largest utility Eletrobras ELET6.SA to BBB- from BBB on Monday in line with its earlier decision to downgrade the country's sovereign debt.

The agency cut Brazil's long-term debt rating one notch to BBB-, its lowest investment-grade, due to mixed policy signals from President Dilma Rousseff�s government that had undermined its fiscal credibility and a slow growth outlook for the next two years. News Search ID:nL4N0ML4HZ

S&P also cut the credit rating of mining company Samarco, which is owned by Vale VALE5.SA and BHP Billiton , to BBB- from BBB. The outlook for all three Brazilian companies is stable, the agency said.

(Reporting by Anthony Boadle; Editing by Michael Perry)

((anthony.boadle@thomsonreuters.com)(+55 61 3426-7018)(Reuters Messaging: anthony.boadle.thomsonreuters.com@reuters.net))

Keywords: RATINGS BRAZIL/COMPANIES