Fitch Ratings has revised the rating outlook on Mexico’s long-term foreign and local currency sovereign Issuer Default Ratings (IDRs) to positive from stable and affirmed the country’s BBB/BBB+ long-term foreign/local currency and F3 short-term IDR ratings. The ratings revision reflects Mexico’s external solvency ratios and the credibility of the country’s fiscal policy following the successful passage of the pensions reform bill, said Fitch. Commenting on the improved outlook by Fitch, Goldman Sachs analysts Alberto Ramos noted that continuing progress on reform, particularly tax reform, would contribute greatly to an upgrade in the near future, as would measures to reduce the budget dependence on oil revenues. He also indicated a likely outlook upgrade by S&P may be on the cards.
Category: Regions
Televisa Sells Univision Shares
Mexican media group Televisa has divested itself of all its shares in Spanish-language US broadcaster Univision in return for $1.1 billion. Televisa announced its intention to sell its 11% shareholding last year after it lost its $12 billion bid to buy Univision to a US investor group. The sale frees Televisa from an agreement that restricts its expansion in the US market.
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.
Belize Power Plant Secures $35 Million Financing
US infrastructure financing and advisory firm CIFI, has announced it has arranged a $35 million debt facility for Belize Cogeneration Energy Limited (BELCOGEN), owned by Belize Sugar Industries. Funds will go to build a 31.5 MW biomass power plant, which seeks to meet 20% of the country’s energy demands and help reduce its reliance on foreign oil.
New Mining Minister For Bolivia
Bolivia’s president, Evo Morales, has replaced his mining minister – José Guillermo Dalence Salinas – after only six months. Dalence, a former trades union leader, is succeeded by Luis Alberto Echazú, previously a deputy at the ministry.
Ecuador Political Tension Rises
Ecuador’s political confusion continues after a judge ordered 57 lawmaker, fired earlier this month by the country’s electoral tribunal (TSE), to be reinstated. The ruling on Wednesday left Congress in limbo as President Rafael Correa rallied support against what he described as an illegitimate decision. The conflict between Correa and Congress continues to deepen as he tries to push forward with his plans for constitutional reform which he has made a priority since taking power in January.
Mexican Authorities Suspend Líneas Aéreas Azteca
Mexican authorities on Monday suspended the operating license of local airline Líneas Aéreas Azteca. The decision to suspend operations was taken following a report by the Bureau of Civil Aviation (DGAC), “which has determined that this airline has not guaranteed operations within basic security standards, mainly due to problems with maintenance and training,” announced the ministry of communications and transportation on Tuesday. The airline has 90 days to resolve its problems before resuming operations.
S&P Rates Panama Cross-border RMBS
Standard & Poor’s Ratings has assigned a triple A rating to La Hipotecaria Panamanian Mortgage Trust’s $73.05 million certificates series 2007-1, due December 2036, the first cross-border RMBS to be rated by S&P in Panama. This is also the first Panamanian transaction rated by S&P in which the assigned rating is higher than the sovereign ratings (local and foreign currency) of the country where the underlying mortgages were originated, said the agency. The transaction securitized a pool of Panamanian residential U.S. dollar-denominated floating-rate mortgages originated by mortgage company La Hipotecaria. This is the eighth securitization for the company but the first issued with a full wrap and placed in the international markets.
Guatemala Interior Minister Resigns
Guatemala’s interior minister, Carlos Vielmann, has resigned following the political scandal that has engulfed the country following the assassination last month of three Salvadorian politicians and the subsequent murders of four police officers who had been charged with the crime. Vielmann had come under pressure to resign, allegedly for having links with death squads operating within the police force.
Transelca Approves Bond Issue
Colombian electricity provider Transelca, owned by state-controlled electricity distributor Interconexión Eléctrica SA (ISA), is to issue bonds worth up to 150 billion pesos or the equivalent in dollars ($69 million) to be placed either in the domestic market or in international markets. ISA took control of Transelca, which serves Colombia’s Atlantic coast, earlier this year after exchanging Ecopetrol’s 34.99% holding for a 5.78% stake in its capital. ISA was partially privatized in 2000 and has become a key regional player in the sector, expanding into Panama, Peru, Ecuador, Bolivia and Brazil.