NEW YORK (TheStreet) -- Shares of Banco Bradesco (BBD) - Get Report are down by 5.78% to $5.47 in midday trading on Thursday, as some stocks traded in the U.S. but based in Brazil tumble as the South American country could have its credit rating cut to junk at Moody's Investor Services.
On Wednesday, Moody's cut all ratings for Brazil-based state-run energy company Petrobras (PBR, PBR.A) to Ba3 from Ba2.
"These rating actions reflect Petrobras' elevated refinancing risks in the face of deteriorating industry conditions that make it more difficult to raise cash through asset sales," Moody's said, according to the Financial Times.
Following the opening of impeachment proceeding against Brazilian President Dilma Rousseff last week, Moody's added that it is placing Brazil's Baa3 rating on review for a downgrade.
Banco Bradesco is a Sao Paulo-based commercial bank offering a variety of banking and financial products and services to clients in Brazil and internationally.
As a result of the possibility of Brazil's credit rating being downgraded to junk status the country's currency and the Ibovespa declined earlier today.
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.