Moody’s de Mexico has downgraded GMAC Mexicana Sofol’s long-term national scale debt rating to Baa1.mx from A3.mx, and the long-term domestic rating to Baa1.mx from A3.mx. The ratings have negative outlooks and follow a downgrade of General Motors Acceptance Corporation LLC’s senior unsecured rating to B1 from Ba3. “GMAC Mexican subsidiaries’ debt ratings are based on irrevocable and unconditional guarantees provided by GMAC, and as such, the downgrading of GMAC LLC has a direct impact on the ratings of their guaranteed debt,” says the agency. “Although the subsidiaries’ financial performance on a stand-alone basis remains adequate, the financial standing of GMAC LLC is now weaker,” it adds.
Category: Regions
Posted inDaily Brief
Titulizadora Peruana Eyes 15-year Securitization
Titulizadora Peruana, the securitization shop being set up with the help of the IFC, is set to open its doors by the end of February and will look to price its first deal in June, Enrique Oliveros, general manager, tells LatinFinance. The offering backed by dollar-denominated mortgages will include a senior tranche of up to 15 years, as well as a smaller junior piece. The fixed rate notes could potentially come in the 6.0%-6.5% range, says Oliveros, though pricing will be determined during the bookbuilding process in June. BBVA Continental issued in December what is considered to be Peru’s first MBS deal, $23.75m in sol-denominated 8-year notes at 6.75%.
Posted inDaily Brief
Buenaventura Takes Off Gold Hedge
Compania de Minas Buenaventura, Peru’s largest publicly-traded precious metals mining company, says it has completely unwound its gold hedge book by releasing the fixed price of 782,000 gold ounces committed for years 2010 to 2012. Total payment for the transaction was $434m, which Buenaventura says will be financed via debt. The miner already eliminated 140,000 ounces from its 2010 gold commitments by paying $82.6m in cash last month. “After reducing the gold commitments in both transactions, which totaled 922,000 ounces, Buenaventura is now completely un-hedged,” says the firm.
Posted inDaily Brief
GEO Readies MXP Bonds
Mexican homebuilder Corporacion GEO has filed for a bond offering of up to MXP2bn in long-term notes. The company is heard to be considering tenors of three and five years. Proceeds will repay short-term debt, as well as cover a $300m March maturity. The issue is rated A- on a local scale. Banorte and Santander will manage the sale.
Posted inDaily Brief
LatAm Sovereign Debt Supply Seen Drying Up, S&P Says
Sovereigns in LatAm and the Caribbean should issue a slightly smaller amount of debt in 2008 compared to 2007, according to S&P. The agency forecasts gross long-term debt from the 25 sovereigns will be $290bn – including both multilaterals and capital markets – down from $322bn last year. The trend is owed to better overall access to the capital markets that has given borrowers access to longer tenors and reduced the frequency of refinancing. Governments are also less in need of funds because of improving credit ratings and debt management. Brazil should again be the biggest issuer this year, followed by Mexico, Colombia, and Venezuela, says S&P.
Posted inDaily Brief
Mexican Cinema Operator Preps Local Debt
MM Cinemas is planning to offer MXP1bn in 2013 bonds. Mexico’s second-largest cinema chain will use proceeds to repay debt and for working capital. Santander is sole manager on the mxA minus transaction, expected to take place February 13.
Posted inDaily Brief
America Movil Reported Seeking Argentina Listing
Mexico’s America Movil is planning to list on Argentina’s stock exchange, according to a report in the El Cronista newspaper, which did not indicate where it obtained the information. Officials plan to meet this moth to discuss the listing, which would not include new shares, with a transaction occurring as soon as March. America Movil was unavailable for comment yesterday.
Posted inDaily Brief
S&P Places MBIA Mexico on Credit Watch Negative
S&P has put MBIA Mexico’s AAA global rating on credit watch negative, following actions on its US parent MBIA Insurance. “The rating on the Mexican subsidiary is based on the comprehensive support MBIA provides to MBIA Mexico in the form of a reinsurance agreement, which calls for MBIA Mexico to cede 100% of its net exposure to MBIA, in addition to a net-worth maintenance agreement from MBIA,” the agency said. S&P also lowered ratings or put on credit watch negative seven Mexican, one Panamanian, and one Costa Rican residential mortgage-backed securities transactions backed by MBIA, Financial Guarantee Insurance and XL Capital Assurance, as well as placed five Chilean infrastructure securitizations backed by MBIA on ratings watch negative.
Posted inDaily Brief
Moody’s Considers Maxcom Upgrade
Moody’s has revised the outlook on Mexican telecom Maxcom to positive from stable, following a review initiated in November. The telecom and cable provider has seen operating results and credit metrics improve more than expected, the shop says, and its balance sheet has been helped by a successful IPO last year. Limitations from increasing competition in its sector and a high number of disconnections are mitigated by expectations that double-digit growth will continue into the future. Maxcom’s issuer rating remains B3.
Posted inDaily Brief
BCP Takeover Talk Gets Specific
Lima-based bankers continue to chatter about a sale of Banco de Credito del Peru to Santander, which the alleged target continues to deny. A $1.3bn price is rumored for a 60% stake in the bank and Santander president Emilio Botin is said to be making his way over to Lima next week. “There is absolutely nothing to date on any sale of the bank,” says Aida Kleffmann, investor relations officer at Credicorp, BCP’s holding company. She adds that there had been rumors about a transaction swirling for several weeks, but denied a sale was being planned, or that there had been meetings with Santander, either in the past or scheduled for next week. “There’s a lot circling around out there, but nothing going on,” says Carlos Munoz, COO said earlier this week. He added that the bank has no interest in selling itself. However, Credicorp is controlled by the Romero family, and everything has its price. But BCP remains Peru’s dominant bank in terms of assets and will likely only trade at a very full price.