Fund managers are trimming commodities exposures in favor of consumer and other industries, a survey of leading managers has found.
Category: Corporate & Sovereign Strategy
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HRT CEO Resigns
Marcio Rocha Mello has resigned as CEO of Brazilian oil company HRT Participacoes em Petroleo, the company says. He has been the chief for three years, and will remain as a board member. HRT does not give any indication of who will replace Mello after the move, which came as something of a surprise. “The board asked him to reconsider his decision, but he held to it,” the company says.
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Natixis Hires ex-Credit Agricole Banker
Jean-Philippe Adam has been hired as head of Natixis’s LatAm platform, in a new role at the French bank, Natixis says. Based in New York, he will oversee the wholesale banking activities in the Latin American region, including a bank in Brazil and representative offices in Argentina, Mexico, and Peru. He comes to the role from Credit Agricole, where he was managing director and head of loan syndications for Latin America until leaving last month. He will report to Stephane About, CEO and head of Natixis’s wholesale banking Americas platform.
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S&P Lowers Marfrig
S&P has lowered Marfrig Alimentos to B from B+, it says, after poor results have prohibited improvements to credit metrics. The Brazilian food products company’s negative working capital and weak cash flows have prevented expected debt reduction. The agency expected some debt reduction and stronger cash generation to result in debt to Ebitda of 7.0x and funds from operations to debt close to 10%, a scenario that it now expects for 2014-2015. The outlook is negative.
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SMU CEO Resigns
Javier Luck plans to leave his post as CEO of Chilean retailer SMU to pursue personal projects, the Chilean retailer says. He is replaced by Marcelo Galvez, the company’s vp of strategy and human resources. As part of the transition, Luck will stay on with SMU until May 31. The operator of Unimarc and other stores raised $300m in an international bond debut in February, and has indicated it would consider an IPO in the near term.
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Commodities dip raises LatAm growth fears
EXCLUSIVE: An end to the commodities boom will drive down Latin American growth – even if prices stabilize at today’s levels – former IMF Western hemisphere director Claudio Loser warns in an exclusive article for LatinFinance
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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.
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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.
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CorpBanca Adds JPM Vet
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.
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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.