Credit Suisse Starts Axtel at Outperform

Credit Suisse has kicked off coverage of Mexico’s Axtel with an Outperform recommendation on the 2017s and a market perform on the 2013s. “We think the Axtel ’17s offer attractive relative value with improving credit fundamentals, at a yield of 7.5%, whereas the upside on the ’13s will likely be limited by its callability (at 105.5 on 15 December 2008),” says the shop, which underwrote both Axtel deals. Axtel is Mexico’s second largest fixed telephony company with over 800,000 lines in service located across 19 cities as of April 2007, according to Credit Suisse.