- Analysts weigh in very negatively on Petrobras' (PBR -9.6%) timid fuel price increases and opaque pricing methodology.
- Credit Suisse downgrades shares all the way to Sell from Buy, citing a lack of management credibility and the lack of a business friendly government in Brazil after Friday's announcement.
- PBR wants to reduce its debt burden to below 2.5x net debt to EBITDA but for that to happen, Credit Suisse notes it must raise its fuel price by 20% in 2015, which has not been done before.
- The market is concerned that this could be the last price increase until the 2014 presidential election, Deutsche Bank adds.
Petrobras cut to Sell from Buy at Credit Suisse after fuel price increase
Dec 2 2013, 10:44 ET