CCM Talks to Banks, Not Bondholders

Mexican retailer Controladora Comercial Mexicana (CCM) is in talks with bankers regarding the renegotiation of debt tied to foreign exchange, rather than bondholders. The company said Tuesday it is negotiating with creditors on how to meet its liabilities, after a slide in the Mexican peso. The negotiations are not expected to affect bondholders, says Jim Harper, director of corporate research at BCP Securities, who spoke with the company, as CCM’s liability issues have to do with a specific instrument tied to FX. The MXP closed at 13.04/USD Wednesday. The movements of the peso and BRL (2.39/USD Wednesday) so far this week are not seen yet impacting dollar-denominated debt payment ability for LatAm issuers, says Harper. Most benefit from being exporters earning at least some dollar income.