Zacks senior Latin American markets analyst Claudio Freitas, CFA is lowering his recommendation of Mexican airline Grupo Aeroportuario (ASR).  We wanted to find out why, so we looked into his latest research report on the company:

'We are changing our current recommendation on Grupo Aeroportuario del Sureste, S.A. de C.V. from Buy to Hold. Second quarter results were positive, with strong commercial revenues and positive passenger traffic. The outlook for the third quarter remains positive. The company has a long history of impressive results and strong cash flow.

'However, the continued appreciation in the price of oil in the last few weeks coupled with a less benign economic environment in the U.S. is a huge short-term concern. In fact, since the U.S. Federal Reserve began to cut interest rates some weeks ago, oil has been appreciating almost on a daily basis, now reaching US$90 per barrel.

'We believe the higher oil prices could undermine the end of the year tourist season in Cancun and Cozumel. Finally, the less positive economic environment in the U.S. as a result of the subprime mortgage system crisis, may affect the Mexican economy in the following quarters since both economies have very strong ties.'