Embratel, Femsa, Petrobras and Walmex: Latin Equity Preview

The following stocks may make significant gains or losses in Latin American markets today. Symbols are in parentheses after company names, and stock prices are from the last session.

The Morgan Stanley Capital International index of Latin American shares rose 0.5 percent to 4,460.96 yesterday.

In Brazil, preferred shares are the most commonly traded class of stock.

Chile

Banco de Credito e Inversiones (BCI CC): Fitch Ratings assigned the Y series bonds of Chile's fourth biggest bank a AA- rating, BCI wrote in a regulatory filing after the market closed yesterday. The lender's shares fell 102 pesos, or 0.7 percent, to 15,299 pesos.

Colombia

BBVA Colombia SA (BBVACOL CB): Banco Bilbao Vizcaya Argentaria SA's Colombia unit sold 300 billion pesos ($147.6 million) in floating rate bonds, double the amount offered, as demand for the securities soars in the South American country. Bogota-based BBVA Colombia will pay interest of 2.09 percentage points more than the benchmark interbank offered rate, known as DTF, for the two-year debt, the bank said in an e-mail statement. BBVA Colombia rose 7 pesos, or 3.8 percent, to 192 pesos.

Brazil

Embratel Participacoes SA (EBTP4 BS): Empresa Brasileira de Telecomunicacoes SA, the Brazilian phone company controlled by Embratel Participacoes, had its debt rating raised by Moody's Investors Service to Baa3, the lowest investment grade. The company boosted revenue by adding data-transmission services, Moody's said in a statement e-mailed yesterday. Rio de Janeiro- based Embratel fell 2 centavos, or 0.3 percent, to 7.53 reais.

Petroleo Brasileiro SA (PETR4 BS): Brazil's state- controlled oil company said it could start production as soon as 2010 from its Tupi oil field, which it said yesterday may contain 8 billion barrels of oil. Output will likely start in five to six years, said Guilherme Estrella, head of exploration and production at Petrobras. The Rio de Janeiro-based company rose 9.95 reais, or 14 percent, to 80.20 reais.

Usinas Siderurgicas de Minas Gerais SA (USIM5 BS): Domestic steel demand from automakers that lifted third-quarter profit at Brazil's second-biggest steelmaker will remain ``positive,'' wrote Ativa Corretora analyst Monica Araujo, who has a ``buy'' rating on the company, in a note e-mailed yesterday. Usiminas fell 4.30 reais, or 3.2 percent, to 131.20 reais.
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