Mexican issuance continues to move at a good clip. Recurring market visitor Su Casita closed its second fixed-peso RMBS via Credit Suisse on Nov. 16 for a total Ps703 million ($64 million). With a 26-year legal final, the Ps621 million A tranche secured triple-A national scale ratings from all three major rating agencies and priced at 8.66%. That was a yawning 149 basis points inside Su Casita's first fixed-peso issue, which amounted to Ps525 million, had a 25-year legal final and priced last April. The tightening suggests investors aren't having any problem stomaching the heavy volumes of real estate-related deals that have hit the market over the past several months.

The only other issuer in Mexico's market to collateralize its fixed-peso loan is state agency Infonavit. So far the overwhelming majority of RMBS have been in inflation-indexed units (UDIs), reflecting the denomination of most loans originated by the group of nonbank financial institutions known as Sofols.

Meanwhile, media empire Television Azteca closed a Ps4 billion, 14-year legal final transaction via local brokerage Value. Rated only by Fitch Ratings, which gave it a national scale AA(mex)', the deal priced at 148 basis points over 28-day TIIE. The collateral consists of airtime to be purchased by advertisers.

With the proceeds, the company repurchased costlier outstanding bonds backed with the same collateral. The redeemed securities were a Ps1 billion seven-year legal final transaction that priced at 173 basis points over 28-day TIIE in December 2005, a Ps1.4 billion 6.3-year legal final deal that priced at 215 basis points over in September 2005, and a Ps2 billion, seven-year deal that priced at 270 basis points over in December 2004.

Azteca reaches a third of the national television market through Channels 7 and 13. The company runs one of the most extensive Spanish-language media empires in the world.

Elsewhere in Mexico, toll road operator Autopistas y Libramientos priced a second deal backed by toll road receipts generated along a stretch of highway linking the city of Tepic in the state of Nayarit with Villa Union in Sinaloa.

Led by Inversora, the 15-year legal final transaction was sized at 173 million UDIs ($59 million) and priced at a real rate of 5.75%. The only agency to provide a rating was Moody's Investors Service, which graded it Aa3.mx' on the national scale. The closing date was Nov. 17.

The operator of the transaction is a unit of Impulsora del Desarrollo Economico de America Latina (IDEAL), which is, in turn, part of Grupo Financiero Inbursa. Carlos Slim Heliu, one of the world's wealthiest men, owns Inbursa.

(c) 2006 Asset Securitization Report and SourceMedia, Inc. All Rights Reserved.

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