Argentine bonds were upgraded to the equivalent of buy at Bank of America Corp. as analysts said the government has stabilized currency reserves.
The dollar-denominated securities will be supported by a strong harvest that would help build up reserves as well as by debt negotiations with the Paris Club and possible subsidy cuts, Bank of America analysts wrote today in a research note. The securities were previously rated the equivalent of hold.
“Argentina has taken several market-friendly actions since last October that could eventually lead to access to capital markets, if they are able to resolve the rest of the arrears on debt obligations,” the analysts wrote in a separate note.
The Paris Club, a group of creditor nations, invited Argentina’s government to begin talks to settle outstanding debt during the week of May 26, spokeswoman Clotilde L’Angevin said in a March 14 phone interview.
Argentine dollar bonds maturing in 2033 increased 0.74 cent to 72.79 cents at 1:05 p.m. in New York. Yields dropped 14 basis points, or 0.14 percentage point, to 12.34 percent.
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