Gissa to Write Down MXP600m

Mexican manufacturer Grupo Industrial Saltillo expects to register a writedown of a little under MXP600m in Q3 as a result of derivatives losses. Gissa says the mark-to-market-based charge does not represent a cash outflow. The producer of engine parts and iron-based construction products says about half of its sales are in dollars, which also helps to cushion adverse effects of this week’s peso slide. After hedging worries in Brazil last month, concern has now spread to Mexico. Earlier this week, retailer CCM said it was negotiating with creditors related to derivative-based losses. Issuers including Cemex, Urbi, Banco Compartamos, Dine, Sanluis and ICA all moved Thursday to reassure investors they have no FX-based derivatives or precarious dollar-debt positions.