Mexico Sheds Junk Rating
Standard&Poor's finally joined fellow ratings agencies Moody's
Investors Service and Fitch Ratings by awarding Mexico a long
awaited investment grade rating of BBB-, up from BB+. Fitch
upgraded Mexico to investment grade in January and Moody's upgraded
Mexico in March 2000. In February 2002, Moody's raised the
country's ratings another notch to Baa2 from Baa3. The upgrades
follow congressional approval in December of a tax package that
goes some way to strengthening the public finances, further
reinforcing Mexico's strict fiscal policies, heavy foreign
investment flows and low debt ratios (see "Envy of the Region," p.
29). Peru's ReturnPeru placed its first global bond since 1928 with
a $500 million 10-year bond. The bond, led by JP Morgan and
Citigroup, priced at 97.732 with a 9.125% coupon, yielding 9.481%.
As part of the same transaction, Peru also retired $1.21 billion in
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