Category: Regions

Cofotel, Mexico’s telecoms regulator, says it will auction wireless and regional television and radio licenses in the second half of the year to boost competition in these sectors. Currently these two sectors are dominated by America Movil and Telmex, and broadcasters Televisa and Azteca.

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.

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.

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.