In the April-June period, Banco de Crédito Del Peru (BCP) achieved some of its best quarterly results to date, supported by a strong reactivation of the Peruvian economy.
Category: Corporate & Sovereign Strategy
Posted inDaily Brief
Ausol Back to Single B
S&P has raised its ratings on Argentine road operator Autopistas del Sol (Ausol) to B minus from D following completion of its debt restructuring. Ausol finalized the agreement at the beginning of the month, getting 95.7% of creditors holding its $360m in debt to agree to extend maturities. “The debt restructuring combined with the approval for incremental tariffs during 2009-2010 has allowed a certain room for maneuvering,” S&P says, noting repayment ability through the next 3-4 years.
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MRV Gets Fitch Upgrade
Fitch has upgraded the local ratings of Brazilian homebuilder MRV Engenharia’s ratings to AA minus (bra) from A (bra). Fitch cites the company’s ability to maintain solid credit metrics following challenging macroeconomic conditions in 2009, a conservative financial strategy of having a strong liquidity position to support its business growth, and low leverage. Also factored into the rating is the strength of MRV’s business and the company’s efficiency in maintaining sustainable growth with high margins at its projects. As of June 30, cash and marketable securities amounted to BRL982m and total debt was BRL1.4bn. Leverage, measured by total debt/Ebitda, was 2.3x in the last 12 months ended June, while net debt/Ebitda ratio was 0.7x compared to 1.6x and 1.1x, respectively, in 2008.
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BTG Diversifies Into Mexico Research
BTG Pactual has hired Julio Zamora to run a fledgling Mexico equity research and strategy effort. Zamora was previously MD at Cadogan Management and worked in several buyside and sellside roles before that. He is expected to hire another research analyst and possibly support staff for sales and trading. Zamora will be based in New York and reports to Brazil-based research co-heads Rodrigo Goes and Gustavo Gattass. BTG has established itself as a major Brazil equity player and is now looking to build elsewhere in the region. It wants to establish a local presence in Colombia and Peru by early 2011, and Chile and Argentina are other possibilities for expansion, say senior bankers at the firm. BTG recently hired Rafael Shin to support Alonso Aramburu’s Andean and Southern Cone research coverage.
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Digicel Taps CEO for Honduras
Jamaica-based cell phone company Digicel says it has appointed Damian Blackburn as CEO of its Honduras operations. Blackburn, who had previously been regional CEO overseeing 12 Caribbean markets, joined Digicel 2.5 years ago. He replaces Ghada Gebara, who left the company after 5 years to pursue private projects.
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Banorte Welcomes New Chairman
Mexican financial group Banorte has named Guillermo Ortiz as its new chairman effective in March 2011. Ortiz was head of Banxico, Mexico’s central bank, until early 2010, when Agustin Carstens took the position. Current chairman Roberto Gonzalez will become chairman emeritus. The appointments must now be approved by company shareholders.
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ING Adds Economist
Gustavo Rangel has joined ING as senior economist, focusing on Brazil and Argentina, according to a source at ING. He is set to start November 1, reporting to David Spegel, global head of EM strategy. Rangel comes from Medley Global Advisors, where he was an economist focused on Brazil. He had previously been at Barclays.
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Cemex Repours Covenants
Following the announcement of its fourth straight quarterly loss, Cemex has asked to rework bond covenants. The cement maker announced that it has agreed to pay a 25bp fee in order to make the changes, and will pay 100bp if it does not raise $1bn in equity or equity-linked securities by the end of 2011. In return, Cemex gets to reset its maximum consolidated leverage ratio to 7.75x 12-month trailing Ebitda through June 2011, decreasing gradually to 4.25x by year-end 2013. Previously it was to be 6.75x though the end of this year, before falling gradually to 3.5x by year-end 2013, according to Barclays. Cemex also reset its minimum consolidated coverage ratio to 1.75x during 2011-2012, and 2x through year-end 2013, from previous requirements of 1.75x to the end of 2011, 2.0x by June 2012 and 2.25x by year-end 2013, according to Barclays. Cemex also notes amendment to the terms of the reserve of its domestic bonds to improve liquidity and refinancing risk management, without elaborating further. Shares rose 7%, to MXP10.84, and bonds tightened 25bp, according to a report from Scotia. While Scotia notes likes the bonds from a fundamental perspective, “for spreads to rally, we think Cemex needs to demonstrate an inflection point in the downward trend in prices and volumes in order to reassure investors,” it says.
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Bank of Tokyo Names LatAm CIB Head
The Bank of Tokyo-Mitsubishi UFJ has named David M. Gruppo head of LatAm corporate and investment banking, a newly created position. He will report to Randall Chafetz, head of corporate and IB for the Americas. Gruppo has held LatAm corporate and investment banking positions at Goldman Sachs, Morgan Stanley and Santander. Most recently, he has been in various capacities with IBM, including its TJ Watson Research unit.
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Interacciones Targets MXP 3-Year
Banco Interacciones is looking to issue up to MXP1.5bn in 3 year bonds by December, CEO Gerardo Salazar tells LatinFinance. Bookrunners have not been mandated and no guidance provided. The bank is only doing a Mexico roadshow, but will look to go international for next year’s bond issues, adds Salazar. The notes are rated Ba1/A1.mx by Moody’s, and will be issued under a senior debt program of up to MXP10bn. Grupo Interacciones specializes in sub-national and public infrastructure financing in Mexico. It is also looking to issue $2bn equivalent of covered bonds in local and international markets, and $280m of subordinated debt in the next 4 years, according to Salazar.