South America

Brazilian steel company Usiminas has extended the deadline for bondholders to waive the negative pledge covenant in its 7.25% dollar-denominated bonds due 2018.

Brazilian telecoms giant Oi said on Monday morning that it would “carefully analyse” a restructuring proposal by bondholders after meeting Moelis, which is representing creditors, and a potential new investor on Friday.

YPF, the Argentine state-owned oil and gas company, could return to bond markets next year after a busy 2016.

Years of sub-par growth may finally hurt the ratings of Latin America’s two strongest economies, after Fitch placed Mexico and Chile’s ratings on negative outlook.

EM bond investors appeared unalarmed by the doom and gloom that rating agencies cast upon Latin American corporates this week.

Bonds markets in Latin America were firmly in holiday mode this week but syndicate bankers appeared bullish about issuance prospects for 2017 after the region brushed off the US rates hike.

It’s that time of year when analysts dust off their crystal balls and make predictions for the next 12 months. In December 2015 not many were forecasting that Britain would vote to leave the EU, and even fewer were betting on a Donald Trump presidential victory, so investors would be wise to treat such missives with caution. Political risk is a capricious beast, even for the most seasoned market observers.

South American development bank Corporación Andina de Fomento (CAF) has elected Luis Carranza Ugarte, the former Peruvian finance minister, as executive president.

Aeropuertos Argentina 2000, the Argentine airport operator, is looking to return to bond markets in 2017 with a 10 year deal of up to $400m.

Fitch assigned a negative outlook to Latin America’s best-rated sovereign, Chile, on Tuesday as years of low growth finally catch up with the region’s most stable credits.

Fitch said on Tuesday that there would be “no respite” for Latin American corporates in 2017 after record high defaults this year, although not all bond investors share the rating agency’s gloom.

Things may finally be looking up for Odebrecht Engenharia e Construção (OEC), the engineering and construction arm of Brazilian conglomerate Odebrecht, after it came to a leniency agreement with Brazilian, US and Swiss authorities regarding its involvement in the Lava Jato corruption scandal.