Fitch Publishes Latin America Quarterly for Q2 2006.

NEW YORK -- Fitch Ratings has published the latest installment of 'Latin America Quarterly' for the second quarter of 2006.

Highlighted in this issue of the Latin America Quarterly is 'Latin American Corporates Confronting Effects of Nationalism Spurred by High Commodity Prices.' Nationalism, or the threat thereof, has a negative effect on corporates operating in the region, as it may result in higher cost of capital, underinvestment and lower output in strategic industries such as oil.

Other topics in this edition include:

--A Fitch look at Brazilian Consumer Loans - Payroll Deductible Loans in Structured Finance, aiming to provide investors with a comprehensive understanding of the primary risks and mitigating factors involving this secured consumer loan asset;

--The ability of small and medium-sized Brazilian Banks to 'Weather the Storm and Seek New Funding' when adjusting to stress situations;

--Consumer Lending in Mexico, where bank loans to the private sector have been the main driver of the growth rebuilding the balance sheets that were negatively affected by the Tequila Crisis;

--A look at the Latin American Power Sector and the increased risks Latin American power companies' face due to high fuel costs, despite their improved credit profiles in general;

--A Fitch update on the Latin American wireless industry, which continues to be stable as wireless providers benefit from the region's economic recovery, supporting subscriber growth;

--Uruguay's highly dollarized financial system, which is expected to remain so in the short to medium term;

--The development and competitive advantage of Chile's Forestry Industry, the second-largest generator of foreign exchange after mining;

--A detailed look at risk and opportunity in Real Estate Investment Funds in Costa Rica;

--The Dominican Power Sector's dependence on financial support from the government as it struggles to improve;

--A review of Issuer Default Ratings and Recovery Ratings assigned to Latin American Corporates;

--Fitch's Sovereign Upgrade of the Dominican Republic, due to comparably low external and public debt burdens, a manageable debt-service profile, and overall economic recovery.

The Fitch Ratings 'Latin America Quarterly' provides discussion and analysis of trends affecting the credit ratings of Latin American corporate, public finance, and financial entities, as well as the structured finance market. A full copy of the newsletter is available on the Fitch web site at www.fitchratings.com under the Public Finance Sector-Sovereigns-Newsletters headings.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.