Category: Bonds

Moody’s is looking into an upgrade for Banco Latinoamericano de Exportaciones’ (Bladex) Baa3 deposit, debt, and issuer ratings and its D+ bank financial strength rating. The agency lauds the bank’s “track record of increasing core profitability, earnings diversification, and improving asset quality, as well as management’s new strategy to broaden its activities in trade finance and securities business in the Latin American and Caribbean regions.” It adds that the addition of factoring, leasing, and structured trade finance should leverage management’s strong relationship, product and risk assessment capabilities and lead to increasing profitability over time. Liquidity and the funding structure has also been strengthened by growth and diversification in Bladex’s deposit base, and by increasing access to longer term funding from banks and official institutions. Challenges include high competition in core business areas and relatively thin margins, reflecting the bank’s emphasis on high quality names in the region and the predominantly short term trade-related nature of its business. Bladex reported total assets of $4.5bn and equity of $614m as of September 30.

Moody’s is looking into an upgrade for Banco Latinoamericano de Exportaciones’ (Bladex) Baa3 deposit, debt, and issuer ratings and its D+ bank financial strength rating. The agency lauds the bank’s “track record of increasing core profitability, earnings diversification, and improving asset quality, as well as management’s new strategy to broaden its activities in trade finance and securities business in the Latin American and Caribbean regions.” It adds that the addition of factoring, leasing, and structured trade finance should leverage management’s strong relationship, product and risk assessment capabilities and lead to increasing profitability over time. Liquidity and the funding structure has also been strengthened by growth and diversification in Bladex’s deposit base, and by increasing access to longer term funding from banks and official institutions. Challenges include high competition in core business areas and relatively thin margins, reflecting the bank’s emphasis on high quality names in the region and the predominantly short term trade-related nature of its business. Bladex reported total assets of $4.5bn and equity of $614m as of September 30.

Colombian mobile operator Movistar has requested loans worth $600m from the IDB. The unit of Spanish telecoms group Telefónica, expects to use the funds for capital investment, debt refinancing and working capital needs. Movistar Colombia spent $600m over the last two years to increase and improve its network coverage and update technologies.

Cabei, the Central American multilateral, is set to bring a long awaited issue in Thai Baht. The deal is apparently being marketed at the same spread as nine months ago, when it was abandoned. Another Mexican peso-denominate issue is also apparently lined up, says a person close to the issuer. CAF has also recently registered a shelf in Mexico.

Cabei, the Central American multilateral, is set to bring a long awaited issue in Thai Baht. The deal is apparently being marketed at the same spread as nine months ago, when it was abandoned. Another Mexican peso-denominate issue is also apparently lined up, says a person close to the issuer. CAF has also recently registered a shelf in Mexico.

Colombian mobile operator Movistar has requested loans worth $600m from the IDB. The unit of Spanish telecoms group Telefónica, expects to use the funds for capital investment, debt refinancing and working capital needs. Movistar Colombia spent $600m over the last two years to increase and improve its network coverage and update technologies.

Colombia’s Bancolombia SA (CIB) has secured a $50m revolving credit line from CAF to support its business in Panama. Its Panamanian unit will finance foreign trade operations and use proceeds for working capital, says CAF. Bancolombia already has a $100m line from CAF.

Despite a breakthrough on the free trade agreement with the US, Bear Stearns says it recommends a “cautious approach to investing” in Costa Rica. “We view DR-CAFTA ratification in Costar as very good news for the credit and expect the positive referendum outcome to elicit a favorable near-term market response,” says Bear. “However, given that ratification was only the first big step in the final process, with passage of 13 contentious laws that would allow for its implementation still pending (something that may be complicated by the fact that the margin of victory of the pro-DR-CAFTA stance was rather slim), we continue to believe that a cautious approach to investing in Costar is still warranted,” it adds.