HALISTER1: Grupo Aval Bond Investors Overestimating Odebrecht Fallout: UBS

Grupo Aval Bond Investors Overestimating Odebrecht Fallout: UBS

(Bloomberg) -- The risks to Aval from the Odebrecht bribery allegations in Colombia may be smaller than the credit market perceives, analysts Sean Glickenhaus and Frederic De Mariz write in report.
  • Potential liabilities, if any, associated with Odebrecht would be reasonable and likely preserve a balance between punitive measures and ensuring financial viability of the payees
  • Recommends investors buy Aval and Banco de Bogota bonds on weakness; maintains outperform recommendations on AVAL 2022 and BANBOG 2023 and 2026 debt
  • Also rates Aval’s ADRs as Buy with a $10 price target
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
ODBE4 BZ (Odebrecht SA)
BOGOTA CB (Banco de Bogota SA)
AVAL CB (Grupo Aval Acciones y Valores SA)

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