NEW YORK (TheStreet) -- Shares of Petrobras (PBR) plunged 10.48% to $14.73 in morning trading Monday after Brazil's real fell to a five-year low ahead of the nation's presidential election on October 5.
The currency fell 2.1% to 2.4713 per U.S. dollar at 9:13 a.m. in Sao Paolo, the worst performance of 31 major currencies, according to Bloomberg. The real has tumbled 11% in the third quarter, the biggest decline since September 2011.
The latest polls show incumbent Dilma Rousseff is widening her lead over pro-business candidate Marina Silva. The real fell amid concerns a Rousseff victory would cause Brazil to struggle to come out of its recession.
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Petrobras, the state-owned energy company, also fell on the news of Rousseff's advantage. During the last several weeks, Petrobras has risen on positive news for Silva and fallen when the polls have shown support for Rousseff.
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, attractive valuation levels 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, disappointing return on equity and poor profit margins."