September was a poor month for ABS issuance in Mexico, but the pipeline portends a few sizable deals up ahead. The only transactions placed in the public market was the second RMBS from FOVISSSTE, basically the piggybank for government employees in the country, and a negligibly-sized re-opening of an RBMS from Hipotecaria Total (for description of Total’s unique approach to RMBS see ASR 2/4/08).

The FOVISSSTE deal amounted to 936 million inflation-indexed (UDIs) ($297 million) and yielded 5.39%, with a legal final of 30 years. The fund closed its maiden RMBS only last June. The current transaction brings the agency’s total issuance of RMBS to 1,760 UDIs.

Intriguingly, the deal was rated by HR Ratings as well as the big three. It will be interesting to see whether other issuers in Mexico begin to seek four ratings on their deals. All the agencies assessed the deal at triple-A on their respective national scales.


Deals on the slate include an accounts receivables ABS from Grupo Zapata; a toll road deal from IDEAL, an infrastructure company belonging to Carlos Slim’s empire; and a transaction from GE Capital.

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