Mexico Stands Apart
Moody's Investors Service raised its rating outlook for Mexico
to positive from stable last month. It currently rates the
sovereign Baa3, the lowest investment grade rating.
Standard & Poor's still rates Mexico one notch
below investment grade at BB+, with a positive outlook. Moody's
said the change in outlook, "Mostly reflects the continued
integration of the country into the North American economic
zone." It said this has strengthened the resilience of its
economy to external shocks and, in particular, to emerging
market contagion. Shortly before this, Mexico issued a heavily
oversubscribed $1.5 billion, 30-year benchmark global bond
aimed mainly at US high-grade investors. Salomon Smith Barney
and Goldman Sachs managed the deal. The issue was upsized from
$1 billion after receiving $3 billion in orders. The bond was
launched at 355 basis points over US Treasurys with...
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