Fixed Income Analysis /

Weekly Credit Risk Monitor

    Stuart Culverhouse
    Stuart Culverhouse

    Chief Economist & Head of Fixed Income Research

    Tellimer Research
    29 March 2018
    Published byTellimer Research
    Credits in Focus – Samarco Mineração: Clock ticks for SAMMIN, but still a Buy. Our base case is that, by end-Q2, SAMMIN will have received the necessary permits to begin operating again – or at least know when the permits will be issued – and the details of what fines it must pay and when. This implies a Buy recommendation on the company’s bonds – and, hence, we reaffirm our Buy in this report. However, with Q1 at an end, though, it is worth highlighting the risks around our base case, not least given: 1) the slow pace of progress from the company and the authorities; and 2) the recent market volatility that has prompted SAMMIN bond prices to retreat a little from their January highs.