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PBR - your CEO is hitting the road along with a whole bunch of other senior execs.

Here Is Why Petroleo Brasileiro Petrobras SA (PBR) CEO Stepped Down
Bidness Etc takes a look at the reasons that caused Maria das Graças Foster to resign from her post of chief executive

By: MICHEAL KAUFMAN
Published: Feb 4, 2015 at 11:01 am EST


Maria das Graças Foster has stepped down as CEO of Petrobras, according to an official company filing released earlier today. Five other senior executives have also resigned from their respective posts. Ms. Foster was appointed as chief executive in 2012, after joining the Brazilian oil major three decades ago as an intern.

The president and other members of the board will convene on Friday to elect new senior executives. The resignation can be attributed to the recent corruption scandal plaguing the company, which has cleaned away as much as 70% of its market capitalization in the last six months. Wide spread corruption and bribery allegations has had severe ramification on the Brazilian economy. Another reason for the decline in stock price can be attributed to the significant plunge in crude oil prices since June last year.

The corruption scandal has also embroiled the largest construction companies in Brazil, which has influenced public work projects in the country, and has brought President Dilma Rousseff under fire. Ms. Rousseff was the Chairman of the Board during a partial duration of the corruption scandal.


Following this announcement, Petrobras Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) is up nearly 5.4% in pre-market, trading at $7.68. The stock has closed in the green for the last two days. Yesterday, the stock price of the most indebted energy company in the world rose 13.7% after the news of the CEO stepping down was first reported

Earlier today, Fitch ratings downgraded Petrobras SA credit rating to the lowest point in investment grade rating from “BBB” to “BBB-.”

www.bidnessetc.com/34054-here-is-why-petroleo-brasileiro-petrobras-sa-pbr-ceo-stepped-down/