Exotix lowers recommendation on Iraqi bonds to 'hold' from 'buy' - Reuters News

17-OCT-2016
10:01:43 AM

BAGHDAD, Oct 17 (Reuters) - Exotix Partners has changed its recommendation on Iraqi bonds to "hold" from "buy" as their recent rally has reduced the possibility of further gains, the firm said on Monday.

Exotix said Iraq's 2028 government bonds IQ024029557= rallied as oil prices stabilised and the International Monetary Fund agreed to provide funds after the OPEC nation committed to cutting public spending and controlling its debt. Exotix had had a buy recommendation on Iraq's debt since March. (Full Story) (Full Story)

"In our view, these developments do much to justify the rally we have already seen, but are probably not sufficient to argue for further upside from here," said the report.

"As a result we are changing our recommendation on the 2028s from a Buy to a Hold," it said.

The IMF in July approved a three-year, $5.34 billion standby arrangement for Iraq to support Baghdad's efforts to deal with lower oil prices and ensure its debt sustainability.

Baghdad, which relies almost exclusively on oil income, has struggled to pay its bills since global crude prices dropped in 2014, the same year Islamic State militants seized a third of the country’s territory.

Iraqi forces, backed by a U.S.-led military coalition, have retaken around half that land and on Monday began a push to retake Mosul, the largest city under the jihadists’ control. (Full Story)



(Reporting by Maher Chmaytelli; Editing by Hugh Lawson)

(( maher.chmaytelli@thomsonreuters.com ; +9647901917030; ))


Keywords: IRAQ-DEBT/BONDS


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