Standard & Poor’s has begun assigning recovery ratings to the debt of 16 speculative-grade-rated Mexican corporations, as global investors are forced to place more focus on the recovery of principal after a borrower’s potential default.
The new ratings measure the probability of an investor recovering principal and interest after a borrower defaults. S&P has already introduced similar ratings in the US and Europe; Mexico is the first country to receive the ratings in Latin America. Brazil could be next. The ratings are being rolled out globally as investors have become more concerned about the chances...
