Why Petrobras-Petroleo Brasilier (PBR) Stock Is Down Today

NEW YORK (TheStreet) -- Petrobras-Petroleo Brasilier (PBR) was falling -1.7% to $13.72 Wednesday after Brazilian Finance Minister Guido Mantega reportedly turned down requests for fuel price increases.

According to Bloomberg, Mantega turned down the company's request, saying that it could ease its financial difficulties by meeting production targets. Mantega reportedly said in April and May that a weaker Brazilian Real helped the company's short-term finances.

Petrobras officials are reportedly concerned that fuel price caps could lead to a lower rating, and higher credit costs for Petrobras.

Must read: Warren Buffett's 25 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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 deteriorating net income, poor profit margins and weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

If you liked this article you might like

The Retail Apocalypse Is About to Descend on Wall Street This Coming Week

Former Petrobras CEO Bendine Arrested in Bribe Probe

Pirates Step Up Attacks on Petrobras Refineries in the Amazon

Petrobras Stock Jumps on CVM Decision, Lula Conviction

Former Brazilian President Lula Gets 9 Years For Corruption