EMERGING MARKETS-Colombia peso bucks Latam rally after S&P cuts credit outlook

miércoles 17 de febrero de 2016 10:44 GYT
 

By Bruno Federowski
    SAO PAULO, Feb 17 (Reuters) - Colombia's peso bucked a rally
in Latin American currencies on  Wednesday after Standard &
Poor's said it could downgrade the country's "BBB" rating.
    S&P revised its outlook for Colombia's rating to negative
from stable on Tuesday as slumping oil prices weigh on trade and
economic growth. If the agency follows through with a downgrade,
it would leave the country one step away from losing its coveted
investment grade. 
    Analyst Mario Castro at Nomura Securities said in a client
note he expects Colombia to be downgraded "sooner rather than
later." Political difficulties amidst peace negotiations with
FARC risk delaying fiscal reform, adding to pressure stemming
from cheaper oil, he said.
    The Colombian peso and the Mexican peso 
 had dropped to all-time lows last week, pressured by a
recent tumble in oil prices to 12-year lows. Both countries
depend heavily on crude exports as well as oil-related tax
revenue.
    A rebound in crude prices lifted the Mexican peso on
Wednesday as efforts led by Russia and Saudi Arabia to broker a
deal to freeze output turned to Iran. 
    Brazil's stocks and currency also advanced as
shares of state-controlled oil company Petroleo Brasileiro SA
 rose. Reuters reported on Tuesday that state-run
banks are considering converting part or all of their
outstanding loans to Petrobras into equity. 
    Traders also cheered a bill which would relieve Petrobras,
as the company is known, from its obligation of participating in
all new projects in the subsalt polygon oil region. 
    Renan Calheiros, the Senate's president, said the chamber
could vote on the bill as early as Wednesday. 
    
    Latin American stock indexes and currencies at 1415 GMT:
    
 Stock indexes                                daily %   YTD %
                                               change  change
                                    Latest             
 MSCI Emerging Markets                731.66     0.04    -7.9
 MSCI LatAm                          1733.65     1.28   -6.46
 Brazil Bovespa                     41615.34     1.63   -4.00
 Chile IPSA                          3734.88     0.55    1.49
 Chile IGPA                         18311.04     0.49    0.88
                                                             
 Currencies                                   daily %   YTD %
                                               change  change
                                                       
                                      Latest           
 Brazil real                          4.0356     0.80   -2.20
 Mexico peso                         18.7510     0.69   -8.11
 Chile peso                            705.8     0.48    0.55
 Colombia peso                       3417.72    -0.13   -7.27
 Peru sol                             3.5061     0.14   -2.63
 Argentina peso (interbank)          14.8700    -0.13  -12.69
                                                       
 Argentina peso (parallel)             15.03    -0.20   -5.06
                                                       
 
 (Reporting by Bruno Federowski; Editing by Meredith Mazzilli)