The company's five-year investment plan will be lowered to $130 billion from $206.8 billion, as it is trying to reduce debt and recover investor confidence amid a corruption scandal, Bloomberg said.
Regarding the new plan, analysts believe that execution risk is high given the size of assets to be sold, uncertain policies for prices of oil products in Brazil and limited access to local large construction companies and equipment suppliers, Moody's stated.
Many of these large construction companies are under investigation for alleged corruption and bribery accusations, analysts added.
Separately, Brazil President Dilma Rousseff is visiting the U.S. this week. U.S.-Brazilian relations have been frosty since 2013 when leaked National Security Agency files revealed that the U.S. had spied on Brazil, The Wall Street Journal reports.
However, this visit may be a chance for the Brazilian leader to show businesses at home that she is working to secure export opportunities at a time when Brazil's economy is struggling, the Journal noted.
On Tuesday, shares are gaining 0.49% to $8.23.
Separately, TheStreet Ratings team rates PETROLEO BRASILEIRO SA- PETR as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PETROLEO BRASILEIRO SA- PETR (PBR.A) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."