Estrategia de Deuda Corporativa México cccc7 Corporate Bond Market Review May 6, 2020 Early material implications of the pandemic www.banorte.com @analisis_fundam ▪ During April 2020 only one bond was placed, unsecured note ACTINVR 20 for MXN 500 million (‘AA-’, TIIE 28 + 0.9%), the monthly issued Tania Abdul Massih amount was 94.9% lower than the recorded for the same period of 2019 Director of Corporate Debt
[email protected] ▪ The first material implications of the pandemic took place during April, highlighting the sovereign downgrades by Fitch Ratings and Moody’s Hugo Gómez Senior Analyst, Corporate Debt Investor Service, as well as several rating corporate actions
[email protected] ▪ In the short-term market, outstanding amount totaled MXN 34,316 Gerardo Valle million, a 15.2% y/y reduction due to the COVID-19 sanitary crisis and Analyst, Corporate Debt its economic consequences
[email protected] ▪ In May 2020 we expect maturities for MXN 8,355 million from FEFA, Liverpool, Toyota and Cetelem. Based on the actual market conditions, with a high-risk aversion from investors, these maturities could be covered with revolving credit facilities Long-term corporate bond market. During April 2020 the corporate bond market observed the first material implications of the coronavirus epidemic in Contents Mexico. The relevant events that stand out are the sovereign downgrades; Fitch Long-Term Corporate Bond Market 2 Short-Term Corporate Bond Market 9 cut to ‘BBB-’ from ‘BBB’, while Moody’s downgraded the rating to ‘Baa1’ from Banking Bond Market (VT 94 and CD) 13 ‘A3’, following S&P Global ratings last month.