JPMorgan Downgrades Recommendation for Anadolu Efes' Dollar-Denominated Bond Maturing in 2028

JPMorgan (NYSE:JPM) has downgraded its recommendation on Anadolu Efes's 2028 dollar bonds from neutral to underweight, stating that the joint venture with AB InBev in Russia will contribute nearly two-thirds of Anadolu Efes's earnings in the first half of 2024. JPMorgan warned that if Russia decides to make this situation permanent without adequately compensating current shareholders, Anadolu Efes's credit profile will "structurally deteriorate." Russia had issued a decree transferring the Russian part of the joint venture between AB InBev and Anadolu Efes to temporary management.