With pressure on margins likely to affect profit growth in 2002, BBVA Securities have downgraded Mexican brewer, Grupo Modelo, from buy to hold. BBVA said it expects earnings growth of 3% to $741.5 million at Modelo before interest, taxes, depreciation and amortization.

The strong peso has reduced export revenues and pushed up export packaging costs. BBVA said the prospects for Modelo's growth and the outlook for stock price appreciation were "not compelling".