NEW YORK (TheStreet) -- Shares of Petroleo Brasileiro Petrobras SA (ADR) (PBR.A) are falling, down 5.67% to $9.65 in midday trading Monday, following last Friday's arrest of two of Brazilian oil giant's former executives as part of a broad corruption investigation, forcing the company to delay its third quarter earnings release for a month, Reuters reports.
Brazil's state-run oil company said it will address its failure to release its audited third quarter financial results later today, Reuters added.
Petrobras also said it hired private law firms to investigate allegations of money laundering.
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The company was scheduled to release its earnings Friday, but the corruption scandal intensified with the arrest of a second former company executive as Brazilian police arrested 18 people in a raid as part of the corruption investigation, according to BBC News.
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) 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, largely solid financial position with reasonable debt levels by most measures 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."