The BBVA Group companies that have participated in preparing or contributed information, opinions, estimates, forecasts or recommendations to this report are identified by the location(s) of the author(s) listed on the first page as follows: 1) Madrid, London or Europe = Banco Bilbao Vizcaya Argentaria, S.A., including its E.U. branches (hereinafter called ‘BBVA’); 2) Mexico City = BBVA México, S.A. Institución de Banca Múltiple, Grupo Financiero BBVA México (hereinafter called ‘BBVA México’); 3) New York = BBVA Securities, Inc. (hereinafter called "BBVA Securities"); 4.) New York Branch = BBVA, New York branch; 5.) Lima = BBVA Perú; 6.) Bogota = BBVA Colombia S.A.; 7.) Santiago = BBVA Chile S.A.; 8.) Hong Kong = BBVA, Hong Kong branch; 9.) Istanbul = Garanti BBVA Securities.
For recipients in the European Union, this document is distributed by BBVA, a bank supervised by the Bank of Spain and by Spain’s Stock Exchange Commission (CNMV), and registered with the Bank of Spain with number 0182.
All Credit Analysts are subject to following BBVA’s Corporate Procedures for “Financial Research Activity and the Regime Applicable to Research Analysts.” Material information about proprietary models used in ratings of securities in this report is available from the Head of Credit Research. Ratings on credits are updated as analyst(s) views on the outlook for the business of their corporate issuers, market conditions, and/or their outlook for the issuers’ credits change in a meaningful way. BBVA has established reasonable physical and informational barriers, along with compliance reviews and policies, to minimize potential conflicts of interest in preparing reports on corporate credits. Investment research issued by BBVA has been prepared in accordance with delegated regulations and directives of the EU.
We have three ratings for corporate issuers based on our assessed changes in their credit quality over the upcoming six month period: i.) Positive – we expect the credit quality of the issuer to improve; ii.) Neutral – we expect the credit quality of the issuer to remain the same; and iii.) Negative – we expect the credit quality of the issuer to decline. Factors that might impact our ratings for issuers include financial position, cash flows, operating issues and financing needs which may impact an issuer’s ability to service its debts, macroeconomic trends and outlook for interest rates, and the potential for a change in rating by credit rating agencies.
Additionally, we have three ratings for bonds based on our current expectations of relative returns over a six month period: i.) Buy – we expect the bond to outperform its peer group, sector or relevant benchmark; ii.) Hold - we expect the bond to perform in-line with its peer group, sector or relevant benchmark; and iii.) Sell - we expect the bond to underperform its peer group, sector or relevant benchmark. Factors which may influence our ratings for bonds include: current market prices and conditions, outlook for interest rates, and any other factors that are considered in our ratings for corporate issuers.
As of today, for the whole universe of companies which BBVA has under coverage there are 58% Outperform ratings, 32% Market Perform ratings and 10% Underperform ratings. BBVA or any of its affiliates has rendered Investment Banking services or participated as manager and/or co-manager in public offerings in 64% of the Outperform ratings, 36% of the Market Perform ratings and in 0% of the Underperform ratings.
Over the past twelve months, for the whole universe of companies which BBVA has under coverage, there have been a month-end average of 53% Outperform ratings, 29% Market Perform ratings and 18% Underperform ratings. BBVA or any of its affiliates has rendered Investment Banking services or participated as manager and/or co-manager in public offerings for a month-end average of 55% of the Outperform ratings, 34% of the Market Perform ratings, and 11% of the Underperform ratings.
BBVA or any of its affiliates owned a net short position exceeding 0.5% of the total issued share capital of the following companies covered in this report: NA.
BBVA or any of its affiliates owned a net long position exceeding 0.5% of the total issued share capital of the following companies covered in this report: ARCANO FUND - EUROPEAN INCOME FUND - ESG SELECTION, ASELSAN ELEKTRONIK SANAYI VE TICARET A.S., BCP SA (BANCO COMERCIAL PORTUGUES SA), DEUTSCHE BANK AG, DOGUS GE GAYRIMENKUL YATIRIM ORTAKLIGI AS, GARANTI YATIRIM ORTAKLIGI AS, GUBRE FABRIKALARI TURK A.S., MERCADO DE VALORES DE BUENOS AIRES, S.A., NOKIAN RENKAAT OYJ, NYESA VALORES CORPORACION, S.A, PEGASUS HAVA TASIMACILIGI A.S., PETKIM PETROKIMYA HOLDING A.S., TELEFONICA, TOFAS TURK OTOMOBIL FABRIKASI AS, YAPI VE KREDI BANKASI AS, YENI GIMAT ISYERLERLERI ISLETMESI AS.
BBVA or any of its affiliates beneficially owned at least 5% of the common equity securities of the following companies covered in this report: BANCO BBVA ARGENTINA S.A., BANCO BBVA PERÚ SA, BANCO PROVINCIAL SA - BANCO UNIVERSAL, BBVA ALLIANZ SEGUROS Y REASEGUROS, S.A., BBVA COLOMBIA SA, BOLSA DE VALORES DE COLOMBIA, BOLSA DE VALORES DE LIMA SA, BOLSA MEXICANA DE VALORES -BMV-, GARANTI BBVA AS, METROVACESA SA, NAUTA TECH INVEST III, S.C.R. DE REGIMEN SIMPLIFICADO, S.A., TUBOS REUNIDOS, ULKER BISKUVI SANAYI AS, VISA INC, WISERENTR DIGITAL SL.
The following companies hold more than a 5% of the total issued share capital of BBVA: BLACKROCK INC.
In the past twelve months, BBVA or one or more of its affiliates has had, or currently has, as investment banking clients, or registered personnel that have contributed to preparing this report are aware that BBVA or one or more of its affiliates has had, or currently has, as non-investment banking clients the following companies covered in this report: ACCIONA, ALFA, ALSEA, ANGLO AMERICAN, ARCA CONTINENTAL, BHP GROUP, CARREFOUR, CEMEX, CFE - COMISION FEDERAL DE ELECTRICIDAD, ECOPETROL, EDF - ELECTRICITE DE FRANCE, EIFFAGE, ENBW - ENERGIE BADEN-WÜRTTEMBERG, ENEL, ENGIE GROUP, FCC - FOMENTO DE CONSTRUCCIONES Y CONTRATAS (SLIM), GALP ENERGIA, GENTERA, GRUMA, GRUPO AEROPORTUARIO DEL PACIFICO (GAP), GRUPO CARSO (SLIM), GRUPO CEMENTOS DE CHIHUAHUA, GRUPO LALA, GRUPO VOTORANTIM, HERDEZ, IBERDROLA, JBS, JERONIMO MARTINS, MEGACABLE HOLDINGS, MONDELEZ INTERNATIONAL INC, NATURGY GROUP, NOS, ORANGE, PETROLEOS MEXICANOS -PEMEX-, PROSEGUR, REDEIA, REN - REDE ELECTRICA NACIONAL, RENAULT, REPSOL, SAINT GOBAIN, SCOTTISH AND SOUTHERN ENERGY - SSE, SEMAPA, SEMPRA ENERGY, TELEFONICA, VINCI GROUPE, VODAFONE, VOLKSWAGEN, WAL MART.
BBVA or one or more of its affiliates has received compensation for non-investment banking, securities related services or products within the past 12 months from the following companies covered in this report: ABERTIS, ACCIONA, ACERINOX, ACS ACTIVIDADES DE CONSTRUCCION Y SERVICIOS, ACTINVER, ALFA, AMADEUS IT HOLDING, BANCA MONTE DEI PASCHI DI SIENA, BANCO BPM SPA, BANCO COMERCIAL PORTUGUES - BCP, BANCO DE SABADELL, BROOKFIELD, CAIXABANK, CANADA PENSION PLAN INVESTMENT BOARD - CPPIB, CATALANA OCCIDENTE, CEMEX, CIE AUTOMOTIVE, CORREIOS DE PORTUGAL-CTT, EDF - ELECTRICITE DE FRANCE, EDP - ENERGIA DE PORTUGAL, ENAGAS, ENI - ENTE NAZIONALE IDROCARBURI, EURONEXT, FCC - FOMENTO DE CONSTRUCCIONES Y CONTRATAS (SLIM), FEMSA - FOMENTO ECONOMICO MEXICANO, FERROVIAL, FIBRA UNO, GALP ENERGIA, GRIFOLS, GRUPO CARSO (SLIM), GRUPO FINANCIERO BANORTE, GRUPO LALA, GRUPO MCH, GRUPO VOTORANTIM, GRUPPO FININVEST, HOCHSCHILD, IBERDROLA, IMPERIAL BRANDS PLC, INBURSA (SLIM), INTESA SANPAOLO, KUTXABANK, LIBERBANK, MAPFRE, MELIA HOTELS INTERNATIONAL, NATURGY GROUP, PROMOTORA Y OPERADORA DE INFRAESTRUCTURA - PINFRA, PROSEGUR, REDEIA, REPSOL, SANTANDER, SEMAPA, SIEMENS ENERGY, TECNICAS REUNIDAS, TELECOM ITALIA, TELEFONICA, TELEVISA, TIMON, TRILANTIC CAPITAL PARTNERS, TUBOS REUNIDOS, UNICREDIT GROUP, UNION ANDINA DE CEMENTOS S.A.A., VEOLIA, VOCENTO, VODAFONE.
In the past twelve months, BBVA or one or more of its affiliates managed or co-managed public offerings of the following companies covered in this report: ACCIONA, ALABAMA POWER CO, ALFA, ALSEA, AMERICA MOVIL, AMERICAN TOWER CORPORATION, ANGLO AMERICAN, APTARGROUP INC, ARCA CONTINENTAL, ARCELOR MITTAL, AUTOZONE, BANCA AFIRME, BANCO ACTINVER, BANCO CENTROAMERICANO DE INTEGRACIÓN ECONÓMICA, BANCO COMPARTAMOS, S.A., INSTITUCION DE BANCA MULTIPLE, BANCO INVEX, BANCO LATINOAMERICANO DE COMERCIO EXTERIOR, S.A., BANCO NACIONAL DE COMERCIO EXTERIOR, BANCO NACIONAL DE OBRAS Y SERVICIOS PUBLICOS, BANK OF AMERICA CORP, BARCLAYS PLC, BIENES PROGRAMADOS, BNP PARIBAS SA, CAF - CONSTRUCCION Y AUXILIAR DE FERROCARRILES, CARGILL INC., CARREFOUR, CATERPILLAR FINANCIAL SERVICES CORP, CEMEX, CETELEM, CFE - COMISION FEDERAL DE ELECTRICIDAD, CIBANCO, CITIGROUP INC, COCA-COLA FEMSA, COLGATE-PALMOLIVE CO, COMISIÓN FEDERAL DE ELECTRICIDAD, CONOCOPHILLIPS, CONSTELLATION BRANDS INC., DESARROLLOS HIDRÁULICOS DE CANCÚN, DEUTSCHE BANK AG, DIGITAL REALTY TRUST LP, DOW CHEMICAL CO/THE, EDF - ELECTRICITE DE FRANCE, EIFFAGE, ENBW - ENERGIE BADEN-WÜRTTEMBERG, ENEL, ENGIE GROUP, ENTERPRISE PRODUCTS OPERATING LLC, ESTADO LIBRE Y SOBERANO DE MÉXICO, FCC - FOMENTO DE CONSTRUCCIONES Y CONTRATAS (SLIM), FOMENTO ECONÓMICO MEXICANO, FONDO ESPECIAL PARA FINANCIAMIENTOS AGROPECUARIOS, FORD CREDIT DE MEXICO, FORD MOTOR COMPANY, FORD MOTOR CREDIT CO LLC, GALP ENERGIA, GENERAL MOTORS CO, GENOMMA LAB INTERNACIONAL, GENTERA, GM FINANCIAL DE MÉXICO, GOLDMAN SACHS GROUP INC, GRUMA, GRUMA, GRUPO AEROPORTUARIO DEL PACIFICO (GAP), GRUPO CARSO (SLIM), GRUPO CEMENTOS DE CHIHUAHUA, GRUPO HERDEZ, GRUPO LALA, GRUPO PALACIO DE HIERRO, GRUPO VASCONIA , GRUPO VOTORANTIM, HARLEY-DAVIDSON FINANCIAL SERVICES, INC., HERDEZ, HESS MIDSTREAM LP, HLF FINANCING SARL LLC / HERBALIFE INTERNATIONAL INC, HONEYWELL INTERNATIONAL INC., HSBC HOLDINGS PLC, IBERDROLA, IMPERIAL BRANDS PLC, INDUSTRIAS BACHOCO, INTERCONTINENTAL EXCHANGE, INC., INTERNATIONAL BUSINESS MACHINES CORP, JBS, JERONIMO MARTINS, JOHN DEERE CAPITAL CORP, JP MORGAN CHASE & CO, KEURIG DR PEPPER INC, KIMBERLY - CLARK DE MEXICO, LINDE INC/CT, LIVERPOOL, MEGACABLE HOLDINGS, MONDELEZ INTERNATIONAL INC, MORGAN STANLEY, NATURGY GROUP, NAVISTAR FINANCIAL, NEXTERA ENERGY CAPITAL HOLDINGS INC, NOMURA HOLDINGS, INC., NOS, NUCOR CORP, ORANGE, ORBIA ADVANCE CORPORATION, PACCAR FINANCIAL MÉXICO, PARKER-HANNIFIN CORPORATION, PENTAIR FINANCE, PEPSICO INC., PETROLEOS MEXICANOS -PEMEX-, PROLOGIS INC., PROSEGUR, REALTY INCOME CORP, REGAL REXNORD CORP, REN - REDE ELECTRICA NACIONAL, RENAULT, REPSOL, SAINT GOBAIN, SANTANDER, SCOTTISH AND SOUTHERN ENERGY - SSE, SEALED AIR CORP, SEMAPA, SEMPRA ENERGY, SERVICIOS BROXEL, SOCIEDAD HIPOTECARIA FEDERAL, SOUTHERN CO GAS, TELEFONICA, THE PROCTER & GAMBLE COMPANY, TOYOTA FINANCIAL SERVICES MEXICO, TOYOTA MOTOR CREDIT CORP, VINCI GROUPE, VODAFONE, VOLKSWAGEN, VOLKSWAGEN LEASING, WAL MART, WELLS FARGO.
In the past twelve months, BBVA or one or more of its affiliates has received compensation for investment banking services from the following companies covered in this report: AIR LEASE CORP, ALABAMA POWER CO, AMERICA MOVIL, AMERICAN TOWER CORPORATION, APTARGROUP INC, AT&T, AUTOZONE, BANCO ACTINVER, BANCO AZTECA, BANCO INVEX, BANCO MERCANTIL DEL NORTE, BANCO NACIONAL DE MÉXICO, BANK OF AMERICA CORP, BARCLAYS PLC, BAT CAPITAL CORP, BETTERWARE DE MÉXICO, BHP GROUP, BIO PAPPEL, BNP PARIBAS SA, CARGILL INC., CATERPILLAR FINANCIAL SERVICES CORP, CIBANCO, CITIGROUP INC, CNH INDUSTRIAL CAPITAL LLC, COLGATE-PALMOLIVE CO, CONOCOPHILLIPS, CONSTELLATION BRANDS INC., CONVERTIDORA INDUSTRIAL, DAIMLER TRUCK FINANCE NORTH AMERICA LLC, DEUTSCHE BANK AG, DIGITAL REALTY TRUST LP, DOW CHEMICAL CO/THE, ECOPETROL, EDP FINANCE BV, ELEMENTIA, ENEL, ENERGY TRANSFER LP, ENTERPRISE PRODUCTS OPERATING LLC, ESTADO LIBRE Y SOBERANO DE MÉXICO, FORD MOTOR COMPANY, FORD MOTOR CREDIT CO LLC, GENERAL MOTORS CO, GM FINANCIAL DE MÉXICO, GOLDMAN SACHS GROUP INC, GRUPO AEROPORTUARIO DEL PACIFICO (GAP), GRUPO CEMENTOS DE CHIHUAHUA, GRUPO HERDEZ, GRUPO KUO, GRUPO LALA, GRUPO TELEVISA, HARLEY-DAVIDSON FINANCIAL SERVICES, INC., HESS MIDSTREAM LP, HLF FINANCING SARL LLC / HERBALIFE INTERNATIONAL INC, HONEYWELL INTERNATIONAL INC., HSBC HOLDINGS PLC, HYUNDAI MOTOR COMPANY, IBERDROLA, INDUSTRIAS BACHOCO, INTERCONTINENTAL EXCHANGE, INC., INTERNATIONAL BUSINESS MACHINES CORP, JBS USA LUX SA / JBS USA FOOD CO / JBS USA FINANCE INC, JOHN DEERE CAPITAL CORP, JP MORGAN CHASE & CO, KEURIG DR PEPPER INC, LINDE INC/CT, MONDELEZ INTERNATIONAL INC, MORGAN STANLEY, NATURGY MÉXICO, NEMAK, NEXTERA ENERGY CAPITAL HOLDINGS INC, NOMURA HOLDINGS, INC., NUCOR CORP, PARKER-HANNIFIN CORPORATION, PENTAIR FINANCE, PEPSICO INC., PETROLEOS MEXICANOS -PEMEX-, PHILIP MORRIS INTERNATIONAL INC., PROLOGIS INC., PROMOTORA AMBIENTAL, REALTY INCOME CORP, REDEIA, REGAL REXNORD CORP, REPSOL, REPUBLIC OF COLOMBIA, SABINE PASS LIQUEFACTION, LLC, SEALED AIR CORP, SEMPRA INFRASTRUCTURE PARTNERS LP, SOUTHERN CALIFORNIA GAS CO, SOUTHERN CO GAS, TELEFONICA, THE PROCTER & GAMBLE COMPANY, TOYOTA MOTOR CREDIT CORP, TURKIYE IHRACAT KREDI BANKASI AS, VENTURE GLOBAL CALCASIEU PASS, LLC, VEOLIA, VERTEX PHARMACEUTICALS INCORPORATED, VITRO, WAL MART, WELLS FARGO, XIGNUX.
In the next three months, BBVA or one or more of its affiliates expects to receive or intends to seek compensation for investment banking services from the companies covered in this report.
BBVA or any of its affiliates have liquidity commitments or is a market maker in: NA.
BBVA is the Primary dealer for sovereign bonds issued by: Kingdom of Spain, Republic of Portugal, Republic of Italy, Federal Republic of Germany, Republic of Colombia, Republic of Peru, Republic of Uruguay, The Netherlands, Grand Duchy of Luxembourg.
BBVA or one or more of its affiliates has received compensation for non-securities related services or products within the past 12 months from the following companies covered in this report: ABERTIS, ACCIONA, ACERINOX, ACS ACTIVIDADES DE CONSTRUCCION Y SERVICIOS, ACTINVER, AES CORPORATION, ALBACORA S.A., ALFA, ALMENDRAL, ALSEA, ALTRI, AMADEUS IT HOLDING, ANGELINI, ANGLO AMERICAN, ARCA CONTINENTAL, ARCELOR MITTAL, AXTEL, BACHOCO (BOURS), BANCA CARIGE, BANCA MONTE DEI PASCHI DI SIENA, BANCO BPM SPA, BANCO COMERCIAL PORTUGUES - BCP, BANCO DE SABADELL, BHP GROUP, BIMBO, BMW - BAYERISCHE MOTORENWERKE, BOLSA MEXICANA DE VALORES -BMV-, BRASIL FOODS - BRF, BRECA (GRUPO BRESCIA), BRITISH AMERICAN TOBACCO-BAT-, BROOKFIELD, CAF - CONSTRUCCION Y AUXILIAR DE FERROCARRILES, CAIXABANK, CANADA PENSION PLAN INVESTMENT BOARD - CPPIB, CARREFOUR, CATALANA OCCIDENTE, CEMEX, CENCOSUD (RETAIL), CFE - COMISION FEDERAL DE ELECTRICIDAD, CIE AUTOMOTIVE, COCA COLA, COLBUN, COMPANHIA SIDERURGICA NACIONAL -CSN-, CORPORACION FINANCIERA ALBA / ARTA CAPITAL (Gº MARCH), CORPORATIVO FRAGUA, CORREIOS DE PORTUGAL-CTT, CREDITO REAL, DANHOS, DYER CORIAT, EBRO FOODS, ECOPETROL, EDF - ELECTRICITE DE FRANCE, EDP - ENERGIA DE PORTUGAL, EIFFAGE, EMPRESARIAL ENCE, EMPRESAS CMPC (FAMILIA MATTE), ENAGAS, ENAIRE (A.G.E.), ENAP - EMPRESA NACIONAL DEL PETROLEO, ENBW - ENERGIE BADEN-WÜRTTEMBERG, ENEL, ENGIE GROUP, ENI - ENTE NAZIONALE IDROCARBURI, EURONEXT, FAES FARMA, FAMSA, FCC - FOMENTO DE CONSTRUCCIONES Y CONTRATAS (SLIM), FEMSA - FOMENTO ECONOMICO MEXICANO, FERREYCORP, FERROVIAL, FIBRA UNO, FRONTERA ENERGY CORPORATION, GALP ENERGIA, GENOMMA LAB INTERNACIONAL, GENTERA, GERDAU, GICSA, GIGANTE, GLENCORE, GRIFOLS, GRUMA, GRUPO AEROPORTUARIO DEL PACIFICO (GAP), GRUPO AEROPORTUARIO DEL SURESTE, GRUPO ARGOS (GEA), GRUPO BOGOTA DISTRITO CAPITAL, GRUPO CARSO (SLIM), GRUPO CEMENTOS DE CHIHUAHUA, GRUPO COMERCIAL CHEDRAUI, GRUPO FALABELLA, GRUPO FINANCIERO BANORTE, GRUPO LALA, GRUPO MCH, GRUPO MERLIN, GRUPO MEXICO -GMEXICO-, GRUPO MUNICIPIO DE MEDELLIN, GRUPO NUTRESA (GEA), GRUPO PLANETA , GRUPO VOTORANTIM, GRUPPO FININVEST, HERDEZ, HOCHSCHILD, IBERDROLA, IBERPAPEL, ICA INGENIEROS CIVILES ASOCIADOS, IDESA, IMPERIAL BRANDS PLC, INBURSA (SLIM), INDRA, INDUSTRIAS CH, INFONAVIT, INTERNATIONAL AIRLINES GROUP - IAG, INTESA SANPAOLO, INVESTINDUSTRIAL, JBS, JERONIMO MARTINS, KUO, KUTXABANK, LIBERBANK, LIVERPOOL, LVMH, MACQUARIE INFRASTRUCTURE AND REAL ASSETS - MIRA, MAPFRE, MARFRIG, MEDIAPRO - JOYE MEDIA, MELIA HOTELS INTERNATIONAL, MINERA FRISCO (SLIM), MINERVA FOODS, MONDELEZ INTERNATIONAL INC, NATURGY GROUP, NOS, NOVONOR, ORANGE, ORGANIZACION CULTIBA - GRUPO GEPP, PEÑOLES (BAILLERES), PETROBRAS, PETROLEOS MEXICANOS -PEMEX-, POSADAS, PROMOTORA Y OPERADORA DE INFRAESTRUCTURA - PINFRA, PROSEGUR, PUBLIC SECTOR PENSION INVESTMENT, QUALITAS, RED DE CARRETERAS DE OCCIDENTE - RCO, REDEIA, RENAULT, REPSOL, REPUBLICA DE TURQUIA, ROMERO (INDUSTRIAL), RWE AG - RWE, SABANCI (INDUSTRIAL), SAID, SAINT GOBAIN, SANTANDER, SCOTTISH AND SOUTHERN ENERGY - SSE, SEMAPA, SEMPRA ENERGY, SIEMENS ENERGY, SORIANA, SUZANO, TECNICAS REUNIDAS, TELE PIZZA, TELECOM ITALIA, TELEFONICA, TELEVISA, TIMON, TRILANTIC CAPITAL PARTNERS, TUBACEX, TUBOS REUNIDOS, UNICREDIT GROUP, UNION ANDINA DE CEMENTOS S.A.A., VEOLIA, VILLAR MIR, VINCI GROUPE, VOCENTO, VODAFONE, VOLKSWAGEN, WAL MART.
For recipients in the UK, BBVA is a trading name of Banco Bilbao Vizcaya Argentaria, S.A.. Registered in England with Company No. FC014702 and Branch No. BR001254. Registered office: One Canada Square, 44th Floor, Canary Wharf, London E14 5AA. Authorised and regulated by the European Central Bank and the Bank of Spain. Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. To the extent BBVA may provide services to you from outside the United Kingdom, the consumer protections which apply to you under local law may be different from the UK consumer protections applicable to UK firms.
For recipients in Hong Kong, this document is distributed by BBVA, which Hong Kong branch is supervised by the Hong Kong Monetary Authority.
For recipients in Mexico, this document is distributed by BBVA México, a bank supervised by the Comisión Nacional Bancaria y de Valores de México.
For recipients in Peru, this document is distributed by BBVA Perú, a bank supervised by the Superintendencia de Banca, Seguros y Administradoras Privadas de Fondos de Pensiones.
For recipients in Colombia, this document is distributed by BBVA Colombia, a bank supervised by the Superintendencia Financiera de Colombia.
For recipients in Singapore, this document is distributed by BBVA, which Singapore branch is supervised by the Monetary Authority of Singapore.
For recipients in USA, research on products other than swaps is being distributed by BBVA Securities, a subsidiary of BBVA registered with and supervised by the U.S. Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority (“FINRA”) and the Securities Investor Protection Corporation. U.S. persons wishing to execute any transactions should do so only by contacting a representative of BBVA Securities in the U.S. Unless local regulations provide otherwise, non-U.S. persons should contact and execute transactions through a BBVA branch or affiliate in their home jurisdiction.
Research on swaps is being distributed by BBVA, a swaps dealer registered with and supervised by the Commodity Futures Trading Commission (“CFTC”). U.S. persons wishing to execute any transactions should do so only by contacting a representative of BBVA. Unless local regulations provide otherwise, non-U.S. persons should contact and execute transactions through a BBVA branch or affiliate in their home jurisdiction.
BBVA and BBVA Group companies or affiliates (art. 42 of the Royal Decree of 22 August 1885 Code of Commerce), are subject to the BBVA Group Policy on Conduct for Security Market Operations which establishes common standards for activity in these entities’ markets, but also specifically for analysis and analysts. This BBVA policy is available for reference at the following web site: www.bbva.com.
Analysts residing outside the U.S. who have contributed to this report may not be registered with or qualified as research analysts by FINRA or the New York Stock Exchange and may not be considered “associated persons” of BBVA Securities (as such term is construed by the rules of FINRA). As such, they may not be subject to FINRA Rule 2242 restrictions on communications with subject companies, public appearances and trading of securities held in research analysts’ accounts.
BBVA is subject to an Internal Standards of Conduct on the Security Markets, which details the standards of the above-mentioned overall policy for the EU. Among other regulations, it includes rules to prevent and avoid conflicts of interests with the ratings given, including information barriers. This Internal Standards of Conduct on the Security Markets is available for reference in the ‘Corporate Governance’ section of the following web site: www.bbva.com.
BBVA México is subject to a Code of Conduct and to Internal Standards of Conduct for Security Market Operations, which details the standards of the above-mentioned overall policy for Mexico. Among other regulations, it includes rules to prevent and avoid conflicts of interests with the ratings given, including information barriers. This Code and the Internal Standards are available for reference in the ‘Acerca de Grupo BBVA México’ menu of the following web site: www.bbva.mx.
BBVA Perú is subject to a Code of Conduct and to a Code of Ethics for Security Market Operations, which details the standards of the above-mentioned overall policy for Peru. Among other regulations, it includes rules to prevent and avoid conflicts of interests with the ratings given, including information barriers. Both Codes are available for reference in the ‘Nuestro Banco’ menu of the following web site: https://www.bbva.pe/personas/nuestro-banco.html.
BBVA Securities is subject to a Capital Markets Code of Conduct, which details the standards of the above-mentioned overall policy for USA. Among other regulations, it includes rules to prevent and avoid conflicts of interests with the ratings given, including information barriers.
Exclusively for Recipients Resident in Mexico
In the past twelve months, BBVA México has granted banking credits to the following companies covered in this report: ALFA, ALPEK, ALSEA, AT&T INC, AXTEL, BANCO BILBAO VIZCAYA ARGENTARIA, S.A., BECLE, BEGRAND, BETTERWARE DE MÉXICO, BIO PAPPEL, CATERPILLAR INC., CEMEX, COCA-COLA FEMSA, CORPORATIVO FRAGUA, S.A.B. DE C.V., CORPORACION MOCTEZUMA, CORPOVAEL, EL PUERTO DE LIVERPOOL, ELEMENTIA, S.A.B. DE C.V., ENGIE, FOMENTO ECONÓMICO MEXICANO, GERDAU, S.A., GRUMA, GRUPO AEROPORTUARIO DEL PACIFICO, GRUPO LALA, GRUPO LAMOSA, GRUPO POSADAS, HOLCIM CAPITAL MÉXICO, INMOBILIARIA RUBA, INSTITUTO DEL FONDO NACIONAL PARA EL CONSUMO DE LOS TRABAJADORES, MERCADER FINANCIAL, NEMAK, NESTLE S.A., PACCAR FINANCIAL MÉXICO, REPSOL, VINTE VIVIENDAS INTEGRALES, VOLKSWAGEN LEASING.
In the past twelve months, BBVA México has granted Common Representative services to the following companies that may be covered in this report: N/A.
As far as it is known, a Director, Executive Manager or Manager reporting directly to the BBVA México General Manager has the same position in the following companies that may be covered in this report: ALFA, COCA-COLA FEMSA, DINE, EL PUERTO DE LIVERPOOL, FOMENTO ECONÓMICO MEXICANO, GRUPO AEROPORTUARIO DEL SURESTE, GRUPO BIMBO, GRUPO CARSO, GRUPO KUO, GRUPO MODELO, GRUPO POSADAS, GRUPO TELEVISA, INDUSTRIAS PEÑOLES, TENARIS, URBI DESARROLLOS URBANOS, VITRO.
BBVA México acts as a market maker/specialist in: MexDer Future Contracts (US dollar [DEUA], 28-day TIIEs [TE28], TIIE Swaps, 91-day CETES [CE91]), Bonos M, Bonos M3, Bonos M10, BMV Price and Quotations Index (IPC), Options Contracts (IPC, shares in América Móvil, Cemex, CPO, Femsa UBD, Gcarso A1, Telmex L) and Udibonos.
BBVA México, and, as applicable, its affiliates within BBVA México Financial Group, may hold from time to time investments in the securities or derivative financial instruments with underlying securities covered in this report, which represent 10% or more of its securities or investment portfolio, or 10% or more of the issue or underlying of the securities covered. The research analysts responsible for the elaboration of this “Reporte de análisis” (as defined under mexican laws), have not perceived any compensation from other person or entity different than BBVA México, Grupo Financiero BBVA México or any of its affiliates.
Analyst Certification
The research analysts included on the front page of this report hereby certify that (i) the views expressed in this report accurately reflect their personal views about the subject companies and their securities and (ii) no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report.
Disclaimer
This document and the information, opinions, estimates, forecasts and recommendations expressed herein have been prepared to provide BBVA Group’s customers with general information and are current as of the date hereof and subject to changes without prior notice. Neither BBVA nor any of its affiliates is responsible for giving notice of such changes or for updating the contents hereof.
This document and its contents do not constitute an offer, invitation or solicitation to purchase or subscribe to any securities or other instruments, to undertake or divest investments, or to participate in any trading strategy. Neither shall this document nor its contents form the basis of any contract, commitment or decision of any kind.
Investors who have access to this document should be aware that the securities, instruments or investments to which it refers may not be appropriate for them due to their specific investment goals, financial positions or risk profiles, as these have not been taken into account to prepare this report. Therefore, investors should make their own investment decisions considering the said circumstances and obtaining such specialized advice as may be necessary. Other than the disclosures relating to BBVA Group, the contents of this document are based upon information available to the public that has been obtained from sources considered to be reliable. However, such information has not been independently verified by BBVA or any of its affiliates and therefore no warranty, either express or implicit, is given regarding its accuracy, integrity or correctness. To the extent permitted by law, BBVA and its affiliates accept no liability of any type for any direct or indirect losses or damages arising from the use of this document or its contents. Investors should note that the past performance of securities or instruments or the historical results of investments do not guarantee future performance.
The market prices of securities or instruments or the results of investments could fluctuate against the interests of investors. Investors should be aware that they could even face a loss of their investment. Transactions in futures, derivatives, options on securities or high-yield securities can involve high risks and are not appropriate for every investor. Indeed, in the case of some investments, the potential losses may exceed the amount of initial investment and, in such circumstances; investors may be required to pay more money to support those losses. Thus, before undertaking any transaction with these instruments, investors should be aware of their operation, as well as the rights, liabilities and risks implied by the same and the underlying securities. Investors should also be aware that secondary markets for the said instruments may not exist. Before entering into transactions in futures, derivatives, or options, investors should review all documents on disclosures for risks of investing in options and/or futures at the following websites:
Options - http://www.finra.org/Industry/Regulation/Notices/2013/P197741
Futures - http://www.finra.org/Investors/InvestmentChoices/P005912
Covered bonds, collateralized mortgage obligations, and other mortgage-related or asset backed securities are not suitable for every investor and are subject to certain risks. The value and price of these securities is sensitive to conditions affecting the assets underlying these securities. Accordingly, changes in economic conditions, the value of underlying assets, the real estate market, credit conditions, interest rates, or other factors can cause these securities to diminish in value. Such securities are also subject to risks related to prepayment and clean-up call risk. When the obligations underlying these securities are prepaid at a faster pace than expected and the securities are called, an investor may have to reinvest in securities with a lower yield and/or fail to recover additional amounts (premiums) paid for securities with higher interest rates, resulting in an unexpected capital loss. The structure of these securities may be complex and less information may be available about them than other types of debt securities. Before investing in such securities, investors should thoroughly review educational material that is available on the securities at http://www.investinginbonds.com/.
BBVA or any of its affiliates’ salespeople, traders, and other professionals may provide oral or written market commentary or trading strategies to its clients that reflect opinions that are contrary to the opinions expressed herein. Furthermore, BBVA or any of its affiliates' proprietary trading and investing businesses may make investment decisions that are inconsistent with the recommendations expressed herein. No part of this document may be (i) copied, photocopied or duplicated by any other form or means (ii) redistributed or (iii) quoted, without the prior written consent of BBVA. No part of this report may be copied, conveyed, distributed or furnished to any person or entity in any country (or persons or entities in the same) in which its distribution is prohibited by law. More specifically, this document is in no way intended for, or to be distributed or used by an entity or person resident or located in a jurisdiction in which the said distribution, publication, use of or access to the document contravenes the law which requires BBVA or any of its affiliates to obtain a licence or be registered. Failure to comply with these restrictions may breach the laws of the relevant jurisdiction.
The remuneration system concerning the analysts responsible for the preparation of this report is based on multiple criteria, including the revenues obtained by BBVA and, indirectly, the results of BBVA Group in the fiscal year, which, in turn, include the results generated by the investment banking business; nevertheless, they do not receive any remuneration based on revenues from any specific transaction in investment banking.
In the United Kingdom, this document is directed only at persons who (i) have professional experience in matters relating to investments falling within article 19(5) of the financial services and markets act 2000 (financial promotion) order 2005 (as amended, the "financial promotion order"), (ii) are persons falling within article 49(2) (a) to (d) (“high net worth companies, unincorporated associations, etc.”) of the financial promotion order, or (iii) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons"). This document is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this document relates is available only to relevant persons and will be engaged in only with relevant persons.
BBVA Hong Kong Branch (CE number AFR194) is regulated by the Hong Kong Monetary Authority and the Securities and Futures Commission of Hong Kong. In Hong Kong this report is for distribution only to professional investors within the meaning of Schedule 1 to the Securities and Futures Ordinance (Cap 571) of Hong Kong.
This document is distributed in Singapore by BBVA’s office in this country for general information purposes and it is generally accessible. In this respect, this document does not take into account the specific investment goals, the financial situation or the need of any particular person and it is exempted from Regulation 34 of the Financial Advisors Regulation (“FAR”) (as required in Section 27 of the Financial Advisors Act (Chapter 110) of Singapore (“FAA”)).
BBVA, BBVA México, BBVA Chile S.A., BBVA Colombia S.A., BBVA Perú and BBVA Securities are not authorised deposit institutions in accordance with the definition of the Australian Banking Act of 1959 nor are they regulated by the Australian Prudential Regulatory Authority (APRA).
General Disclaimer for Readers Accessing the Report through the Internet
Internet Access
In the event that this document has been accessed via the internet or via any other electronic means which allows its contents to be viewed, the following information should be read carefully:
The information contained in this document should be taken only as a general guide on matters that may be of interest. The application and impact of laws may vary substantially depending on specific circumstances. BBVA does not guarantee that this report and/or its contents published on the Internet are appropriate for use in all geographic areas, or that the financial instruments, securities, products or services referred to in it are available or appropriate for sale or use in all jurisdictions or for all investors or counterparties. Recipients of this report who access it through the Internet do so on their own initiative and are responsible for compliance with local regulations applicable to them.
Changes in regulations and the risks inherent in electronic communications may cause delays, omissions, or inaccuracy in the information contained in this site. Accordingly, the information contained in the site is supplied on the understanding that the authors and editors do not hereby intend to supply any form of consulting, legal, accounting or other advice.
All images and texts are the property of BBVA and may not be downloaded from the Internet, copied, distributed, stored, re-used, re-transmitted, modified or used in any way, except as specified in this document, without the express written consent of BBVA. BBVA reserves all intellectual property rights to the fullest extent of the law.