NEW YORK (TheStreet) -- Shares of Petroleo Brasileiro Petrobras (PBR) are trading lower -5.62% to $13.10 on Tuesday as the company defends its 2006 purchase of a refinery in Pasadena, Texas against allegations it overpaid dramatically, Reuters reports.
Opponents of President Dilma Rousseff are fighting to open a formal investigation into the purchase, which they claim was made for 20 times the actual value of the refinery.
The oil and gas company is in the midst of a scandal claiming politics are motivating corruption, cost overruns and stagnation at the state-run company.
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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."