NEW YORK (TheStreet) -- Petrobras (PBR.A - Get Report) stock is falling by 10.10% to $6.59 in early-afternoon trading on Monday, as the Brazil-based energy company will seek a $1 billion loan from the Export-Import Bank of China earlier than originally planned.
The company is negotiating a definitive contract with the Chinese lender, Petrobras said in a filing, Bloomberg reports. The financing, which was initially expected in 2017, is related to equipment and service contracts from Chinese suppliers.
Petrobras has been negatively impacted by the prolonged slump in oil prices as well as Brazil's major corruption investigation.
The oil producer has become more dependent on Chinese lenders during a time when ratings downgrades, lower oil prices, and Brazil's economic downturn have increased borrowing costs in international debt markets.
Further weighing on shares today, there was an inventory build of 1.4 million barrels at the Cushing, Oklahoma delivery hub for crude deliveries, according to market intelligence firm Genscape. Oil prices are consequently lower this afternoon.
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 article's author.