High Grade Chile Makes the Rounds

S&P has given an A+ rating to Chile’s upcoming bond issue. The sovereign is pitching investors through Wednesday $1bn in USD bonds and a $500m debut in global pesos. Given the high ratings (A1/A/A+), DCM bankers away from the deal and analysts expect Chile’s first deal since 2004 pricing comfortably through regional low-yielders Brazil and Mexico. “The sovereign ratings on Chile – the highest in Latin America – reflect a strong political consensus on key economic policies, the credibility of its institutions, and a track record of stable economic growth,” S&P says, specifically highlighting countercyclical measures during the 2008-2009 global crisis. The shop finds that neither the credit crisis nor the earthquake will hinder Chile’s growth, which it expects at 4.5% in 2010 and 5.0% in 2011, following a contraction of 1.5% in 2009. Citi, HSBC and JPMorgan are managing the transaction, expected to launch after the roadshow.