NEW YORK (TheStreet) -- Shares of Hewlett-Packard (HPQ) are lower by 1.25% to $35.50 in mid-morning trading on Thursday, as the company is facing a possible 10-year ban on selling products and services to the Canadian government as a result of the company's recent U.S. bribery conviction, the Globe and Mail reports.
This is the first time Canada is enforcing its new strict integrity rules, which were quietly introduced by Canadian public works and government services in March, Globe and Mail noted.
The company, which provides products, technology, and software, solutions and services to a variety of consumers, recently pleaded guilty and agreed to pay a $108 million fine to the SEC after its foreign units were accused of bribing Russian government officials, Reuters reported.
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As part of Canada's new rules, companies face an automatic ban on any future government contracts if they are convicted of any crime, including criminal activity that took place outside of Canada.
"The department is reviewing the recent U.S. court decision regarding HP Russia and is examining the impact of this court decision on our current and future business with HP Canada," a spokesperson from Canada's Public Works Minister told Globe and Mail.
Separately, TheStreet Ratings team rates HEWLETT-PACKARD CO as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: