Citigroup (C) Stock Up, Closing Some Venezuela Accounts
NEW YORK (TheStreet) -- Shares of Citigroup (C) - Get Report are gaining 1.4% to $42.88 in pre-market trading Tuesday as its Citibank unit will end correspondent banking and servicing of some accounts in Venezuela, Reuters reports.
Venezuela President Nicolas Maduro said yesterday that Citibank planned to close his government's foreign currency accounts within a month.
He said the move by one of its top foreign financial intermediaries is part of a "blockade," Reuters added.
Citibank said the decision was made after a periodic risk management review.
The Venezuelan government relies on Citibank for foreign currency transactions because of strict currency controls put in place since 2003, Reuters noted.
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Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins and notable return on equity.
But the team also finds weaknesses including unimpressive growth in net income, weak operating cash flow and a generally disappointing performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: C