Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) stock trading high


Dallas, Texas 09/04/2013 (Financialstrend) – While the stock of Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) had recently presented highly deteriorating financial picture, it came quite as a surprise that Standard & Poor’s had maintained its investment grade credit rating to this stock. It was commented in the report that  this national oil company of Brazil is presently enjoying the strong benefits of credit support from the government. It was further brought to notice that the company would prove highly efficient to meet out its capital expenses through the existing liquidity, sizeable cash flows and through access to the long term funding options. Thus the company proves to be highly self sufficient to meet out its capital requirements through its funding agreements and through the government support.

Such efficiency to meet out the expenses had enabled the stock of Petrobras to retain the rating with the Standard & Poor’s. However, it had been cautioned that the stock is presently given a credit rating of BBB with a negative outlook, which means that the stock would be downgraded anytime if the Standard & Poor’s reduces the sovereign credit rating of Brazil. The stock thus relies heavily on the effectiveness of the credit rating of the Brazilian government.

Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) presented gain in share prices on Tuesday to close at $13.60 per share which was an increase of 0.59% over previous close. The intraday prices of the stock moved in the range of $13.51 to $13.85 per share and the 52 week prices are at low of $12.03 and high of $24.83 per share. The stock on Tuesday reported trading volume of 15.46 million shares and the average level is at 17.76 million shares per day. Presently the company has 6.52 billion shares traded in the market with institutional ownership at 8%.