Markets’ Patience With Puerto Rico Wearing Thin: Sterne Agee

A research note on Multinational & Regional Banks by Sterne Agee analysts Todd L. Hagerman and Robert Greene reiterates a Buy rating on Puerto Rico exposed banks Popular Inc (NASDAQ:BPOP), First Bancorp (NYSE:FBP) and OFG Bancorp (NYSE:OFG), albeit with riders.

“While a clear path has been established to improve the Commonwealth's fiscal woes, patience is beginning to wear thin. To that end, our sense is on-going stabilization in the underlying economy and a return to the long-term capital markets in early '14 are required to restore investor confidence,” say the analysts.

Markets worried about recent events in Puerto Rico

The action by Moody’s to put the Commonwealth’s debt on watch for a possible downgrade from its current Baaa3 rating, as well as...