(Bloomberg) -- Bonds sold by Mexico to shield it from the cost of repairing hurricane damage are closer to paying out after the biggest storm ever measured in the Americas struck the country last month, Standard & Poor’s said.
S&P cut its rating on the $100 million bonds to CCC- from B- after Swiss Reinsurance Co. Ltd. asked for a ruling on whether the storm met the conditions for Mexico to keep the money instead of paying it back on Dec. 4, when the debt falls due. The determination will be made by AIR Worldwide Corp., which serves as the calculation agent.
The last time Boston-based AIR Worldwide was asked to rule on the bonds, it took three months to do so, S&P said. Preliminary readings of atmospheric pressure from the National Hurricane Center suggests that the bonds will pay out at least 50%, if not 100%, the ratings company said.
Recommended For You
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
