Southern Copper hogs limelight in quiet LatAm session

lunes 20 de abril de 2015 16:43 GYT

By Paul Kilby

NEW YORK, April 20 (IFR) - Southern Copper, a miner with operations in Peru and Mexico, hogged the limelight Monday with a rare US$2bn bond sale in an otherwise quiet session for Latin America credit markets.

With oil prices higher and the yield on the benchmark 10-year US Treasury still comfortably below 2%, the region's benchmark bond prices held steady amid an improving tone in emerging markets as China moved to combat slowing growth.

Brazilian oil firm Petrobras continues to be the focus of attention ahead of the expected release of audited financial results this week, with its 2024s closing at about 10bp tighter today at 450bp.

"The thing we are really looking at this week are the audited numbers from Petrobras, which should shed some more light on the company's situation and could affect the rest of the market," said a New York based broker.

Elsewhere, the 7.25% 2018s issued by Brazilian steelmaker Usiminas were trading about a point lower at a cash price of 96.95 Monday after Fitch downgraded the credit to BB from BB+.

As justification for its move, the rating agency cited deteriorating credit metrics on the back of weak steel demand and the oversupply of iron ore.

The company may need to request a waiver on covenants that set net leverage thresholds at 3.5x, just above the current 3.3x, it said.

Meanwhile, in the primary markets, Southern Copper managed to ratchet in pricing on a new 10s/30s trade.   Continuación...