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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED
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To: BirdDog who wrote (45835)1/4/2002 7:08:40 PM
From: Sully-  Read Replies (1) of 65232
 
Fleet Shares Are Downgraded on Fears of Exposure to Argentina's Economic Crisis

BOSTON (AP) -- Shares of FleetBoston Financial Corp. [NYSE:FBF - news] were downgraded Friday on concerns the company has considerable exposure to the economic crisis in Argentina.

Solomon Smith Barney cut its investment opinion of the Boston-based banking giant to ``outperform'' from ``buy,'' saying the crisis could create an overhang of concern for the stock.

``It's not going to knock their stock price 20 and 30 percent, but it's going to prevent their stock price from advancing,'' said Gerard Cassidy, banking analyst at RBC Capital Markets in Portland, Maine.

A message left with a spokesman for Fleet was not immediately returned.

Cassidy said Fleet faces a $2 billion exposure in Argentina on an asset base of $200 billion.

Argentina has spiraled into a political and economic crisis following its decision to devalue its currency and halt payments on its foreign debt.

Fleet has set aside money to handle the problem, Cassidy said, but additional money would be required later this year as problems continue to mount in Argentina.

``We think that earnings will be negatively impacted by the situation in South America, but the negative impact will be manageable and will not materially affect earning per share,'' Cassidy said.

But earnings expectations for 2002 may have to be revised downward once the new government finalizes its economic policy.

Fleet shares closed down 1.1 percent, or 40 cents, to close at $35.50 Friday on the New York Stock Exchange.

biz.yahoo.com
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