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.
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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 deteriorating net income, poor profit margins and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows: