LatAm Bonds

Fitch has cut the credit rating of Pacific Exploration and Production (formerly Pacific Rubiales) by two notches from B+ to B- and placed the issuer on rating watch negative after the agency revised its oil price outlook.

Pemex CFO, Mario Beauregard has resigned from the state-owned Mexican oil giant and will be replaced by a peer from a fellow government enterprise.

It is already evident that the human and environmental impact of last week’s burst dam at an iron ore mine in Minas Gerais, Brazil, will be tragic. But those left with the uneasy task of analysing the financial fallout on the company that operated the mine still have more questions than answers as the bonds sold off 30 points.

Latin American bond markets suffered another turbulent week as the old problems of rate rise fears and commodity price slumps resurfaced.

The level of support that Brazilian iron ore pellet producer Samarco Mineraçao’s high profile shareholders provide the company could determine just how serious the effects of last week’s dam accident will be, said Fitch on Wednesday.

Middle East deals are having a bumpy ride, with one missing benchmark size on a Reg S deal and another failing to appear after finishing a roadshow. But neither backdrop nor the end of year approach is stopping fresh Middle East focussed deals hitting screens.

Argentina’s leading mortgage lender is looking to raise at least $200m in the international bond markets to finance a tender offer of outstanding debt due April 2016.

Chilean financial services firm, Tanner appeared to have done a disappearing act this week, seemingly cancelling its attempts to raise dollar debt having released price thoughts last Friday.

Moody’s has cut the rating on Brazilian shopping centre owner General Shopping’s $315m unsecured bonds from B2 to Caa1, saying there is an “elevated” risk of default in the next year or two.

It was hardly back with a bang, but Latin American corporate issuance is on the agenda again after Fibra Terrafina sold $425m of seven year notes on Tuesday — some two months after its roadshow.

Latin American development bank Corporación Andina de Fomento’s (CAF) chief financial officer appeared relaxed at the prospect of rising interest rates in the US after the multilateral clinched a record low coupon and spread on its latest euro transaction.

Latin America bankers say that a Mexican corporate is likely to announce a roadshow on Thursday after Fibra Terrafina’s debut deal traded well in secondary despite only a modest oversubscription.