Minera Yanacocha, Peru's largest gold producer could be the latest victim of the country's controversial election. The company's BBB-rated structured notes were placed on credit watch with negative implications by Standard & Poor's last week. The $100 million of bonds backed by export receivables were sold by Solomon Brothers in 1997 to a variety of international investors.

"The Yanacocha transaction is the only Peruvian structured deal with investment grade ratings," said Nancy Gigante Chu from S&P in New York. "We are still examining the situation. If we conclude that the company will be able to continue to operate even if the government defaults on both its foreign and local currency or in case of severe economic stress we will maintain the current rating."

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