Net Servicos de Comunicacao SA’s bonds are beating those of Latin American media companies after Carlos Slim, the world’s richest man, boosted his stake in Brazil’s biggest cable TV-provider.
Net’s 7.5 percent bonds due in 2020 have returned 1.8 percent in the past two months, compared with a 0.1 percent gain in a regional index of media company debt compiled by Credit Suisse Group AG. The securities also outperformed Brazilian corporate debt, which sank 0.9 percent during the same period, JPMorgan Chase & Co. data show.
Slim’s America Movil SAB, Latin America’s largest wireless carrier, spent $2 billion on Oct. 7 to stockpile preferred shares in Net as the Mexican billionaire seeks to combine mobile-phone operations with home-phone, Internet and TV services in Brazil to lure customers from Madrid-based Telefonica SA. Embratel Participacoes SA, America Movil’s Brazilian unit, had a 79 percent stake in Net as of Oct. 26.
“That was a very large investment, which signals to the market that they intend to fully support this entity,” Chris Buck, a Latin America corporate debt analyst at Barclays Plc in New York, said in a telephone interview. “It’s been partially priced and more of it should be priced in.”
Net’s bonds also beat U.S. corporate debt, which is down 0.9 percent in the past two months, according to Bank of America Merrill Lynch.
The yield on the Sao Paulo-based company’s $350 million of bonds dropped 15 basis points, or 0.15 percentage point, since Oct. 1 to 5.43 percent, according to data compiled by Bloomberg.
Standard & Poor’s changed the outlook on Net’s BB+ rating to positive from stable on Nov. 16, saying America Movil’s growing stake in the company may prompt it to raise the ranking by at least one level. Moody’s Investors Service rates Net Ba1, in line with S&P and one level below investment grade.
“Until now, we have not incorporated any kind of financial support from Net’s share
CARLOS FERREIRA by JOO P. TELES
Representado pela Unique, o modelo Carlos Ferreira que tem 18 anos e um corpo incrvelse reuniu com o fotgrafo Joo P. Teles [blog] para um novo update no seu portfolio. Beauty: JJ Estrela.
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