NEW YORK (TheStreet) -- Shares of Petrobras (PBR) were gaining 1.1% to $7.19 Monday after Brazilian president Dilma Rousseff announced she has no plans to replace the CEO of the state-run oil company.
While Rousseff has no plans to replace the CEO, the president did say she plans to make some changes to the company's board during a breakfast with reporters, according to the Wall Street Journal.
Petrobras CEO Maria das Garcia Gracas Foster recently offered to resign because of an investigation in which at least two former executives face charges of money laundering, fraud, and corruption, but Rousseff turned down the offer. Rousseff said she doesn't "see any sign of errors" in the company's current management.
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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."