Bond investors are bracing for a potential default by Mexico’s largest payroll lender.
Bonds for Credito Real CREAL SAB de CV lost almost half their value in recent days over uncertainty about its ability to repay a 170 million Swiss franc bond, equivalent to $184 million, that falls due on Feb. 9.
If the company misses the payment it would mark a victory for hedge-fund managers who questioned its accounting practices last year and bet bonds and share prices would drop. It would also be a blow to international banks, ratings firms and the auditor that helped Credito Real borrow about $2 billion in international markets since 2016.
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