NEW YORK (TheStreet) -- Shares of Petrobras (PBR) fell 3.5% to $11.29 in morning trading Monday as the Brazilian state-run energy company resumes talks with its auditor, which has demanded the company remove a high-level executive linked to a corruption scandal, according to Bloomberg.
Petrobras ended a board meeting Friday without deciding whether to dismiss Sergio Machado as the head of transport unit Transpetro after PricewaterhouseCoopers, Petrobras' auditor, refused to sign off on quarterly financial results on which his signature appeared.
Some board members hesitated to remove Machado out of concern the action would cause issues in recently re-elected President Dilma Rousseff's coalition, according to Bloomberg.
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Petrobras has been dealing for months with a multi-billion-dollar money laundering and bribery investigation with Rousseff closely tied to the allegations. She served as Petrobras chairwoman from 2003 to 2010. The claims were a significant topic in October's presidential election, in which Rousseff defeated Aecio Neves by a thin margin.
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."