TMM Troubles

Transportacion Maritima Mexicana (TMM), the largest shipping company in Mexico, remains on the debt rating “watch lists” of both Moody’s Investors Service and Standard and Poor’s, where they were placed in mid-September after a financial scandal. Moody’s placed TMM’s Ba2 debt rating under review for possible downgrade, and S&P placed BB- senior unsecured debt on the list.

The listings, which could remain in effect for the better part of a year, came after Mexico’s Attorney General accused Carlos Cabal Peniche of financial fraud, issued a warrant for his arrest and seized his company, Banca Cremi, to prevent further trading of the company.

TMM has several business interests with Cabal including US$43m or 5% of Banca Cremi, a 5% stake of Del Monte holding company, and a 49% interest in Global Reefers Carriers, Inc., a joint venture with Del Monte.

This is only an excerpt of TMM Troubles

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