NEW YORK (TheStreet) --Shares of Petrobras (PBR) were falling 2.1% to $7.55 Wednesday after the Brazilian oil company announced the creation of a special committee that will serve as a reporting line for its current independent internal investigation concerning recent corruption allegations.
The new committee will consist of three people, including Ellen Gracie Northfleet, the former president of Brazil's Supreme Court, Andreas Pohlmann, the former chief compliance officer of Siemens, and Petrobras' chief of compliance, risk and governance. The company hasn't yet appointed anyone to its newly formed role of chief of compliance, according to Dow Jones Business News.
"This Committee will act independently and will have a direct reporting line with the board of Directors," Petrobras said. The committee will be responsible for approving an investigation plan, as well as other tasks related to the recent corruption charges.
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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."