Skip to main content

Chile’s Vapores Climbs Most in Five Weeks as S&P Removes CreditWatch

By Nathan Gill
Sept. 23 (Bloomberg) -- Cia. Sudamericana de Vapores SA, Latin America’s largest container ship operator, rose the most in five weeks in Santiago trading after Standard & Poor’s said the company’s financial flexibility has improved.

Valparaiso, Chile-based Vapores climbed 4.6 percent to 430 pesos at 1:42 p.m. New York time, its biggest intraday gain since Aug. 14. The shares have increased 3.6 percent this year, trailing a 40 percent rally in the benchmark Ipsa index.

S&P’s affirmed the company’s B- credit rating yesterday and removed it from CreditWatch, citing increased liquidity and “successful” negotiations with shipyards, according to a statement on the rating company’s newswire.

“The rating action reflects our views on the company’s recent actions, which we believe have strengthened the company’s financial flexibility and liquidity position, and have alleviated some of the pressure that depressed market conditions have put on the container ship industry,” wrote Diego Ocampo, a Buenos Aires-based S&P analyst.

The company benefited from a reduction in its leasing payments and the sale of stock in the second quarter, which helped it build cash reserves, Ocampo wrote.

Vapores is “well positioned” to increase shipments of iron into China when that country’s economy rebounds, Gabriela Clivio, the head of research at Itau Chile Corredor de Bolsa, said today in a telephone interview from Santiago. She predicts shares will rise to 450 pesos by the end of the year.

“Vapores has a great advantage because it has a large number of ships and they hardly need to invest to increase their fleet,” Clivio said. “To transport iron you need big capacity and Vapores has this capacity.”


Popular posts from this blog

Moving to the Suburbs: Reducciones in Recent Latin American Historiography

In 1503, the Spanish monarchy issued its first decree for the resettlement of indigenous groups in the Caribbean so that they would “live together” and “not remain or wander separated from each other in the backcountry.”[1]

As the European conquest spread to North, Central, and South America, these new settlements – known as reducciones and congregaciones in Spanish and descimentos in Portuguese – became sites of forced labor, evangelism, experimental agricultural, and refuge. Through a series of imperial policies decreed over the next decades and centuries of colonial rule, Spanish and Portuguese officials attempted to reshape the New World, including its human and natural landscapes. How colonial historians explain this process and indigenous peoples’ reactions to it is the focus of this essay.

In a review of the recent historiography of reducciones, several trends emerge that signal a shift in our understanding of the practice. As this paper will show, one common element is that …

77-Year-Old Wall Street Favorite to Face Fujimori in Peru Runoff

By Nathan Gill and John Quigley April 12, 2016 (Bloomberg) -- The victory by Pedro Pablo Kuczynski, a former finance minister, for second place in Sunday’s Peruvian president elections sets up a showdown between two business-friendly candidates, part of a regional backlash against left-wing politicians.
Kuczynski, a 77-year-old Oxford-trained political economist who’s spent more than 50 years championing debt control and free trade, won 21 percent of vote with 96 percent of the ballots counted, according to the electoral office. He will face Keiko Fujimori, who won 39.8 percent, in a second-round vote on June 5.
Click here to read the full story on Bloomberg News.

Bailout Risk Grows for Ecuador After Worst Earthquake in Decades

By Nathan Gill April 19, 2016 (Bloomberg) -- Before a 7.8-magnitude earthquake struck Ecuador on Saturday, the South American nation’s finances were already in tatters as the government struggled to meet payments to municipal authorities, oil companies and even cancer hospitals. Cut off from global bond markets, President Rafael Correa must now find enough money to rehouse thousands.
As volunteers continue to rescue victims from the rubble of collapsed homes and buildings on Ecuador’s Pacific coast, doubts are growing about the country’s ability to pay for the reconstruction. The nation is already in its worst recession since the financial system collapsed in the late 1990s, and international reserves are at their lowest levels in almost seven years.
Click hereto read the full story on Bloomberg News.