Mexico's financial stability council said on Wednesday that there is risk of credit rating action on the ratings for the sovereign and state oil firm Petroleos Mexicanos (Pemex). The council, which includes Mexico's finance minister, central bank governor and head of the banking commission, said a credit rating action on Pemex has been mitigated by measures to improve the tax take and higher oil prices.
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Mexican President Andres Manuel Lopez Obrador said on Thursday the Bank of Mexico had voted to raise its benchmark interest rate by 50 basis points to 6.5%, speaking before the latest decision has been made public by the central bank, Reuters reported. "The Bank of Mexico took the decision yesterday unanimously, and we respect the Bank of Mexico's autonomy," Lopez Obrador said, speaking at a regular government news conference. Economists surveyed by Reuters forecast that the bank would vote to raise its benchmark rate by 50 basis points to 6.5% at its latest monetary policy decision.
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Mexican Foreign Minister Marcelo Ebrard and his Saudi Arabian counterpart on Wednesday agreed to strengthen bilateral economic relations on the first day of the diplomat's 10-day tour of the Middle East and India, Mexico's government said, Reuters reported. Ebrard and Saudi Foreign Minister Prince Faisal bin Farhan Al Saud discussed investing in tourism and innovation, highlighting the need for a direct air route between Mexico and Saudi Arabia, the foreign ministry said in a statement.
Grupo Aeromexico announced today that it has completed its financial restructuring process, officially exiting chapter 11 under which it voluntarily entered in June 2020 in the midst of the worst crisis in the airline industry unleashed by the COVID-19 pandemic, AviaciOnline reported. Since then, the company has been going through a series of changes in the company’s structure and multiple negotiations with creditors, workers and institutions. According to Aeromexico, the value of the capital after the restructuring is approximately USD 2,564 million.
Mexico's Grupo Aeromexico shares plunged for a fourth day in a row on Tuesday after nearly a fifth of the company's capital was sold at 1 cent a share through a public offering as part of its restructuring plan to exit bankruptcy, Reuters reported. Shares in Grupo Aeromexico, which operates the country's main airline and filed for bankruptcy in 2020, fell 27% to 59 cents and have lost about half their value in the past four days. Analysts have said trading in the shares has not reflected a creditor deal that was approved in January. Through the tender offer, which took place between Feb.
Mexico's year-on-year inflation likely accelerated in February after cooling slightly over the previous two months, a Reuters poll showed on Friday, reinforcing expectations that the central bank will continue to raise its key interest rate, Reuters reported. The consensus forecast of 11 analysts surveyed was for inflation to grow to 7.23% from 7.07% in January. If the prediction is correct, it would be the first increase since November, when inflation hit a 20-year high.
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After posting a loss for the fourth quarter, Credito Real said it was seeking to avoid a messy legal battle with creditors and would work to keep the company running following a default earlier this month, Bloomberg News reported. The lender that focuses on payroll loans posted a loss of 359.4 million pesos ($17.7 million) in the fourth quarter as cash levels dwindled to around $30 million. Credito Real failed to pay a 170 million Swiss franc ($184 million) bond due Feb. 9. After huddling with more than 100 representatives from creditors on Feb.
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Mexico’s economy narrowly avoided recession in 2021, as manufacturers adjusted to supply chain snarls and shortages amid a lack of fiscal stimulus, Bloomberg News reported. Gross domestic product stayed unchanged in the fourth quarter from the previous three-month period, better than the median estimate for a 0.1% decline in a Bloomberg survey, according to final data released by Mexico’s statistics institute Friday. Preliminary data last month had showed GDP falling 0.1%, which followed a 0.4% third-quarter contraction.
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Mexico’s Unifin Financiera SAB said it placed the full amount it sought to raise in the local debt market on Thursday as it faced a test of confidence among investors following the default of another Mexican non-bank lender, Bloomberg News reported. The equipment leasing company sold 3 billion pesos (about $145 million) in one-year notes, according to a filing with the stock exchange. The notes have a variable rate of Mexico’s interbank rate plus 1.4 percentage points and total demand was for 3.08 billion pesos.
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A group of Credito Real SAB bondholders has engaged Los Angeles-based investment bank Houlihan Lokey Inc. to help advise them in restructuring talks with the Mexican shadow lender, Bloomberg News reported. Credito Real has begun to reach out to bondholders and is expected to begin restructuring talks with them shortly, one of the people said. Doubleline Capital LP is among the firms with a sizable position in Credito Real’s bonds, said the people, who asked not to be identified because they aren’t authorized to speak publicly.
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