NEW YORK (TheStreet) -- Shares of Petroleo Brasileiro Petrobras (PBR) are lower by 5.01% to $18.41 on Monday afternoon after allegations that the Brazil-based integrated oil and gas company was bribing government officials, Barron's reports.
Over the weekend the Sao Paulo-based Veja Magazine reported that a number of politicians, including those apart of Brazilian President Dilma Rousseff's Worker's Party, were receiving bribes relating to Petrobras' contracts, Bloomberg said.
The names of those allegedly involved with the scandal were disclosed by the former head of refining at Petrobras, Paulo Roberto Costa, as he gave testimony to the federal public prosecutor, Bloomberg added.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Rousseff's secretary general said Costa's accusations are meant to try and disrupt the results of Brazil's October scheduled national election.
Separately, 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 revenue growth, solid stock price performance and attractive valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins."