Oil, Russia weigh on LatAm credits

lunes 23 de febrero de 2015 12:03 GYT

By Paul Kilby

NEW YORK, Feb 23 (IFR) - Latin American credits started Monday mixed as lower oil prices and the Moody's downgrade of Russia to junk overshadowed any boost from Greece's last-minute deal with its creditors.

The region's bond markets were seeing little benefit from improved sentiment in Europe, where shares rose and yields shrunk after Greece's four-month extension on its bailout.

"I am not seeing follow-on in global risk appetite from Greece," said a New York-based trader focused on LatAm corporates. "I would have expected (LatAm) to rally hard on the back of that."

With concerns over Greece temporarily on hold, Uruguay pounced on the opportunity and came to market with its international bond after waiting in the pipeline for weeks.

The South American country, rated Baa2/BBB-/BBB-, is approaching investors with a tap of its 5.1% 2050s after releasing initial price thoughts of 235bp through leads Bank of America Merrill Lynch, Morgan Stanley and Santander.

The sovereign is heard targeting US$1bn and is seen offering a concession of around 20bp, though that is likely to shrink as leads refine guidance. Books were heard at the US$1bn mark earlier this morning.

Meanwhile investors were largely focusing on lower oil prices, which according to Reuters fell more than a dollar today, with Brent futures hitting around US$58.50 a barrel.

Colombia-focused E&P name Pacific Rubiales sunk about a point in response, with its 2019s and 2025s being quoted at 72.50-73.50 and 64.50-65.50, respectively.   Continuación...