Carlos Ruiz de Gamboa has joined Corpbanca’s investment banking arm, according to people familiar with the move. The ex-JPMorgan is a director leading the ECM and M&A operations and charged with expanding them. Starting this week, he reports directly to Roberto Baraona, CEO of the IB unit, known as CorpBanca Asesorias Financieras. Ruiz de Gamboa left JPMorgan in March, after 25 years with the bank, in Santiago and New York. He is also director of the Centro de Inovacion Financiera at the business school of the Universidad Adolfo Ibanez.
Category: Corporate & Sovereign Strategy
Posted inDaily Brief
Fitch Upgrades Mexico
Fitch has upgraded Mexico to BBB+ from BBB, it says, based on continuing macroeconomic improvements and anticipated structural reforms. The agency notes strong macroeconomic fundamentals, including the absence of macro-financial imbalances, as well as consistent adherence to its inflation targeting and flexible exchange rate regimes. Prudent macro-policy settings that have underpinned external and domestic balance, helping Mexico the 3-year GDP growth average reach 4.5% in 2012 despite sluggish US growth. The “Pact for Mexico” alliance has been instrumental in achieving success so far, Fitch says, noting that that “there is sufficient political commitment to make further headway on the pending agenda, such as the fiscal and energy reforms that are slated for discussion in second half 2013.” The outlook is stable. Mexico’s full ratings now stand at Baa1/BBB+/BBB.
Posted inDaily Brief
Geo Lowered
Fitch has downgraded Corporacion GEO to RD from C, it says, after failure to make a coupon payment.
The Mexican homebuilder failed to make an April 26 MXP2.4m ($199m) interest payment on its 2014 bonds. Geo is now rated RD/D/Ca by all three agencies. It is working with Fians Capital and a group of advisors to consider its restructuring options.
Posted inDaily Brief
S&P Positive on Chilean Shipper
S&P has raised the outlook on Compania Sud Americana de Vapores’ B minus rating to positive from stable, it says. The Grupo Luksic-controlled Chilean shipping company recently approved a $500m capital increase to expand its fleet, and is exercising an option to prepay $258m in debt. S&P says the new ships’ size and fuel consumption efficiencies are likely to contribute to the company reducing debt at a faster pace. “The outlook revision incorporates a potential rise in the ratings over the next 12 months if performance patterns and leverage CSAV in 2013 and 2014 are consistent with our revised projections,” S&P says.
Posted inDaily Brief
Moody’s Raises Hypermarcas
Moody’s has upgraded Hypermarcas to Ba2 from Ba3, it says, due to improved credit metrics. The consumer products company’s focus on core business assets, organic growth and deleveraging are the key drivers. The agency notes that Hypermarcas was able to reduce its adjusted gross leverage ratio to 4.3x in December 2012 from 6.8x in the previous fiscal year. It expects additional improvements in leverage ratios, supported by both debt reduction and a stronger Ebitda stream. The ratings outlook is stable.
Posted inDaily Brief
Urbi Downgraded on Payment Failure
Fitch and Moody’s have downgraded Mexican homebuilder Urbi Desarrollos Urbanos (Urbi) to RD from C and to Ca from Caa2, respectively, the agencies say. The moves follow the missing of a a $3.9m payment on its 2014 bonds due April 30, and a similar miss on 2016 bonds earlier in April. Rothschild is advising Urbi on debt restructuring measures. Urbi and its peers Javer, Homex, and Geo, have been struggling with problems including cash flow concerns, excess capacity and less favorable government policies.
Posted inDaily Brief
HSBC Expands Research Team
HSBC has added equity research analysts, with Leonardo Correa joining as a Sao Paulo-based senior vice president, covering LatAm metals and mining, the bank says. He previously worked as the regional sector head at Barclays, and follows recently-hired oil, gas and petrochemicals analyst Luiz Carvalho from the British bank. Also, Jonathan Brandt moves over to head pulp and paper coverage for LatAm, Eastern Europe, Middle East and Africa, coming from HSBC’s metals and mining team. Earlier this year, HSBC also hired three senior LatAm equity analysts, bringing on Sandra Boente from Deutsche Bank to covering the utility and water sectors, Alexandre Falcao from XP Investimentos for transport, infrastructure and industrials, and Francisco Schumacher from Deutsche for Southern Cone and Andean strategist.
Posted inMagazine
Deals of the Quarter Century Awards
LatinFinance’s Deals of the Quarter Century Awards recognize the most impressive capital markets transactions in Latin America over the past 25 years – through good times and bad.
Posted inDaily Brief
Prepare for Lower Commodity Prices: Ex-IMF Official
Latin America’s policymakers must prepare for lower commodity prices, Claudio Loser, president of Centennial Group Latin America, tells LatinFinance. “The last several years of commodity-led prosperity have resulted in a degree of complacency in Latin America that is misplaced. The impact of lower terms of trade can be staggering. Prices will continue to fluctuate, and may even show a secular downward trend,” the veteran economist and former director of the Western Hemisphere at the IMF says. Better terms of trade since 2000 have meant an increase in gross domestic income in excess of GDP growth during that time, he explains, an effect that would erase even if terms of trade were to normalize. Such a reversal would mean trend growth of 2.0%-2.5%, down from 3.7%. “A steep but not unusual decline in terms of trade of 10% would result in a one-time decline in income of 5% in Latin America, with grave consequences for public finances and the external accounts,” Loser says. Fiscal discipline, including structural rules like in Chile, a competitive private sector, better education, and a well-protected financial system are of the essence to survive, he adds. Separately, the IMF identified Monday a “reversal of the favorable tailwinds of easy financing conditions and strong commodity prices that have prevailed since 2010,” as the most important risk to LatAm, in its annual regional outlook. The fund has revised the GDP growth projection for the region for this year to 3.4% from 3.6%.
Posted inDaily Brief
TGI Gets I-Grade Mark
S&P has raised the credit ratings of Transportadora de Gas Internacional (TGI) to BBB minus from BB, it says. The move is based on the Colombian gas transporter’s improved business risk profile to due to the stability and predictability of its cash-flow stream, a position as a monopoly in the markets it operates, the high credit quality of its industrial clients, and an improvement in tariffs. Specifically, government approval of higher rates in November 2012 means a 10% increase in regulated revenues. The unit of Empresa de Energia de Bogota is pursuing additional increases. The outlook is stable. TGI is now rated Baa3/BBB minus/ BBB minus.