NEW YORK (TheStreet) -- Petrobras (PBR) could cut the value of its assets by $8.1 billion, and reduce its dividends due to ongoing investigations by U.S. and Brazilian authorities into allegations of bribery and money laundering at the state-controlled oil producer, a Morgan Stanley analyst said in a note to clients, Reuters reports.
The company's Chief Executive, Maria das Graças, started an internal investigation as Brazilian prosecutors discovered evidence of a long running criminal scheme operating within the company, Reuters said.
The internal investigation could lead to write-downs between 5 billion reais and 21 billion reais ($8.1 billion), the Morgan Stanley analyst said, Reuters noted.
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Shares of Petrobras are up by 0.11% to $9.43 in early afternoon trading on Wednesday.
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, 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."