August was anything but slow in Mexico, as three new issues hopped into the already hopped-up pipeline.

State credit agency Fonacot has slated its first visit to the public market for Ps500 million (US$46.1 million). The company provides consumer credit to workers and then automatically deducts payment from their paychecks. Led by Scotia Inverlat, the issue will securitize a single, non-revolving pool of credits. "The main risk here is that the worker loses his job," said Luis Enrique de la Pena, an analyst at Fitch Ratings, which gave the deal a AAA(mex)' on the national scale. In order to be deemed long-term debt, the transaction has been termed at 366 days, one day over a year. In addition to a reserve fund, the deal enjoys an enhancement from three-month unemployment insurance backing the collateral. It forms part of a Ps1 billion (US$92.2 million) program. A second issue with revolving collateral is planned for the medium term.

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