Mexico

Mexico timed its return to the European bond market on Monday extremely well, said DCM bankers, with risk-hungry investors allowing the sovereign to notch a €9bn book on the way to a dual-tranche deal.

Mexico timed its return to the European bond market on Monday extremely well, said DCM bankers, with risk-hungry investors allowing the sovereign to notch a €9bn book on the way to a dual-tranche deal.

Fitch has slashed the rating of Mexican textiles company Kaltex by three notches to CC, warning that the issuer could soon look to restructure its $320m senior unsecured notes maturing in April 2022.

Fitch Ratings slashed the rating of Mexican textiles company Kaltex by three notches to CC on Monday, warning that the issuer could soon look to restructure its $320m senior unsecured notes maturing in April 2022.

Some EM investors are starting to see value in bonds issued by troubled Mexican state oil company Pemex, while further potential support from the government could lift the bonds further.

Cement company Cemex brought hope for the Mexican bond pipeline as it turned to Europe to become the first Mexican credit to issue internationally since January, while the sovereign also crossed the Atlantic for investor meetings this week.

Cement company Cemex became the first Mexican credit to issue internationally since January as it tapped European investors for a new seven that it will use to refinance existing debt.

Cemex is back in the bond market after a year and a half’s absence, opening books on a senior secured bond in euros.

There was more bad news for Mexico’s standing in bond markets last Friday evening as S&P shocked many market participants by slapping a negative outlook on the sovereign’s BBB+ rating.

Bonds issued by Mexican state oil company Pemex have had a torrid week after support measures announced by the government did not reassure markets.

Pemex's bonds were again the most under-performing in Latin America markets on Tuesday as investors continue to punish the company for last Friday’s apparently underwhelming government support package.

Pemex bond prices slid further on Friday after analysts said Mexican president Andrés Manuel López Obrador’s measures to support the state oil giant would not be enough to prevent continued deterioration in its credit quality.