NEW YORK (TheStreet) -- Petrobras  (PBR.A - Get Report) stock is retreating by 0.26% to $7.68 in late-afternoon trading on Friday, as the Brazil-based energy company might change its new board of directors if President Dilma Rousseff is impeached.

Brazil's government controls Petrobras through a majority of voting shares, and can call a shareholders meeting to replace its seven representatives whenever it wants, Francisco da Costa e Silva, a former president of the local securities regulator, said according to Bloomberg.

If the move to impeach Rousseff succeeds, she will likely be replaced by Vice President Michel Temer, who is expected to enact economic reforms and cut back nationalist oil legislation.

He would probably pursue reforms to encourage more competition within the oil industry and replace Petrobras CEO and board member Aldemir Bendine, who was appointed by Rousseff, Bloomberg adds.

"The Petrobras president has historically been named by the president," Adriano Pires, president of energy consultant CBIE, told Bloomberg. "It will be difficult for the management team to stay - they represent a different government."

Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.

Petrobras's weaknesses include its disappointing return on equity, generally disappointing historical performance in the stock itself and generally high debt management risk.

You can view the full analysis from the report here: PBR.A

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.