S&P downgraded the country's long-term debt rating to BBB minus, and changed its outlook to "stable" from "negative." That affected President Dilma Rousseff efforts to spur the slumping economy which has hurt the country's finances.
Today's rally may be the result of a new poll that shows President Rousseff's approval rating slipped for the first time since last July when street protests erupted. The country has a general election in October.
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TheStreet Ratings team rates PETROBRAS-PETROLEO BRASILIER as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate PETROBRAS-PETROLEO BRASILIER (PBR) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including poor profit margins, weak operating cash flow and a generally disappointing performance in the stock itself."