Standard & Poor's Ratings Services assigned recovery ratings to secured and unsecured loan and bond issues of 13 speculative-grade Mexican corporations. In all, we assigned recovery ratings to 16 issues. We also began to apply our recovery rating scale and issue rating criteria guidelines to the debt. This resulted in 14 affirmations of issue-level ratings and the raising of two.
The launch of our recovery ratings in Mexico represents a new stage in our efforts to keep ahead of Mexico's evolving debt markets. Our recent review of Mexico's insolvency regime, analysis of past debt recoveries in the country, and fundamental issuer– and instrument-specific, scenario-based recovery analyses support this initiative.
Recovery ratings are indicators of estimated recovery prospects for creditors in the event of a debt issuer's payment default and are inputs to our traditional issue-level ratings. Going forward, in determining the
global-scale issue ratings for speculative-grade Mexican issuers, we will consider both the corporate credit rating, which indicates our view of the entity's likelihood of default, and the issue-specific recovery rating. We have not assigned recovery ratings under the Mexican (CaVal) national rating scale.
We published a recovery report today for each issuer to which we assigned a new recovery rating (see the list below). These reports explain the rationale behind our recovery rating conclusions.
