BofA Upgrades Venezuela Oil Bonds, Keeps Sovereign Notes UW

Bank of America has moved bonds from Petroleos de Venezuela to marketweight from underweight while keeping an underweight recommendation on Venezuela sovereign notes.

• Upside risks on PDVSA include constructive negotiations to restructure the company’s debt, a more market- and creditor-friendly government working toward a fair solution for all involved parties, higher oil and gas production and an improved pricing environment, and as well further easing of sanctions and renewal of temporary sanctions, strategists including Jane Brauer and Anne Milne wrote in a note dated Oct. 24
  • Downside risks include a prolonged default and restructuring period, further declines in production ...