NEW YORK (TheStreet) -- Shares of Petrobras-Petroleo Brasilier (PBR) are down -1.03% to $16.29 this morning as a $4.4 billion money laundering investigation linked to the state-run oil and gas company is spreading to financial institutions as prosecutors check whether they met compliance requirements, Bloomberg reports.
Court documents cite units of banks including Citigroup (C), Banco Santander (SAN) and HSBC Holdings (HSBC), as well as Itau Unibanco Holding (ITUB) and Banco Bradesco (BBD) as holding accounts or executing operations linked to the alleged laundering of 10 billion reais, Bloomberg said.
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, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and weak operating cash flow."