JPMorgan Upgrades Brazil Corporate Bonds Following Selloff

JPMorgan said the recent weakness in Brazil’s corporate debt market was triggered by “idiosyncratic” events rather than “systemic deterioration” and as such was unwarranted. Analysts led by Natalia Corfield upgraded several issuers, including Petrobras, Vale, Nexa, Suzano, Gerdau, and Embraer.

• Several companies were “unfairly penalized” and now offer better value given their solid financial positions, according to a note
• Petrobras, Vale, Nexa and Suzano upgraded from Underweight to Neutral; Gerdau and Embraer upgraded from Neutral to Overweight
  • Maintained Overweight stance on CSN, Cosan and Minerva
  • Mexico-based Sitios Latinoamérica, whose bonds were also hit by broader regional sentiment, was also upgraded ...