The president of Ecuador’s Congress, Jorge Cevallos, has suspended legislative sessions until April 10 as the political crisis in the country deepens ahead of the April 15 proposed referendum on constitutional reform. The sacking of 57 lawmakers by the country’s Supreme Electoral Court (TSE) last month sparked a series of legal twists and turns that have led to an impasse between the government and Congress.
Category: Regions
Posted inDaily Brief
Pemex Gets Rating Boost
Mexican state-run oil concern Petroleos Mexicanos (Pemex) has been given a ratings upgrade by Fitch, which has revised the company’s outlook from stable to positive. The move follows Fitch’s revision of Mexico’s outlook to positive from stable last week. Fitch affirmed Pemex’s foreign currency issuer default rating (IDR) as BBB- and its local currency IDR as BBB, noting that “PEMEX’s foreign currency rating remains highly linked with the sovereign” but that it is rated one notch lower “due to the increasing debt levels in an environment of higher oil prices”.
Posted inDaily Brief
Telmex Consolidates Cable Subscribers In Colombia
Mexican operator Telmex has agreed to buy another two Colombian cable TV companies to add to those purchased last year. The fixed-line operator said it will buy 100% of Cablecentro – the country’s second-largest operator – and Satelcaribe, but did not reveal financial details of the transactions. Last December Telmex bought TV Cable and Cable Pacífico. In September the Mexican operator paid over $30 million for Colombian cable operator Superview. Colombian TV regulator CNT estimates Telmex already has over 380,000 local subscribers. The two new acquisitions will add a further 350,000 subscribers.
Posted inDaily Brief
Colombia Prices March Upwards
Colombia’s inflation continued to gather pace in March, with prices pushing up 1.21% during the month, faster than most analysts had expected. According to national statistics bureau DANE, the month’s price rise took inflation for the 12 months through March to 5.78%, up from 5.25% in February and further over the government’s 4%-5% target range. Rises in food costs drove prices last month, up 2.6%.
Posted inDaily Brief
Andinatel President Replaced
César Cisneros, the president of Ecuador’s state-run telco Andinatel, has been removed following irregularities picked up in an audit of the company’s finances. Cisneros insisted his forced resignation was the result of failing to sign certain contracts and to make certain appointments, reported local media. Cisneros is replaced by Fabián Palacios, former chairman of the board of local operator Telecsa.
Posted inDaily Brief
Comerci Upsizes Offering
Mexican retailer Comercial Mexicana (Comerci) said on Friday it had placed 3 billion pesos ($272 million) of its 2027 Europeso bonds, increasing the issue from 2 billion pesos in the face of orders totaling 5 billion pesos. The bonds were sold to yield 8.70%, or 100 basis points over the comparable 2027 Mexican Treasury bonds. Proceeds will be used to repay short-term debt and to finance investment needs, said the company in a filing with the Mexican Stock Exchange. The 144a/Reg S. notes are rated BAA2/BBB-/BBB- (Moody’s/S&P/Fitch). Merrill Lynch led; Credit Suisse acted as co-manager.
Posted inMagazine
Latin Exchanges Link Up
The distance between Mexico City and São Paulo is rapidly shrinking for equity investors. A new intra-regional capital flow is about to start.
Posted inMagazine
Satmex for Sale
Satmex, the recently restructured Mexican satellite operator, is on the block for a minimum $500 million. The buyer will need deep pockets to turn it around.
Posted inMagazine
Peru Eyes Capital Markets Reform
Peru is growing at an impressive 9% while inflation, at around 1%, is among the lowest in the world. The country is well on the way to investment grade.
Posted inDaily Brief
Colombia Government Announces Measures To Dampen Peso
Colombia’s government has announced a series of measures aimed at easing the pressure on the exchange rate and to help weaken the strengthening peso. It said it would scale back borrowing from multilaterals this year from a planned $3 billion to $2 billion, as well as arranging for a portion of this financing – around $400 million – to be issued in local currency bonds. Colombian companies will also be allowed to seek acquisition financing in the domestic market – currently not possible – rather than resorting to external sources. Local exporters have been hit by the continuing rise in the peso, which earlier this month reached its highest level against the US dollar in six years.