Mexico seen gaining at Brazil's expense

Brazil’s return to a junk credit rating may be a boon for its regional rival Mexico as Latin America’s two-biggest economies vie for investors.

Bondholders are likely to shift some funds from Brazil to Mexico over coming months, according to Gabriel Casillas, the head of research at Banorte, and Joe Kogan, an emerging-market strategist at Scotia Capital. Mexico is rated three levels higher by S&P at BBB+, the third-lowest investment grade.




Source: Bloomberg