NEW YORK (TheStreet) -- Petroleo Brasileiro SA (PBR) shares are down -1.6% to $13.77 on Wednesday following reports that Brazil's finance minister rejected the oil company's requests to increase fuel-prices in the country, according to Bloomberg.
Finance Minister Guido Mantega dismissed the company's concerns that fuel caps "could result in a lower rating and higher credit costs", according to Bloomberg's source.
Mantega, who also chairs the company's board of directors, has been pushing to reduce reliance on foreign imports by increasing production at the company and believes increased production will also remedy the company's financial difficulties.
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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."