/raid1/www/Hosts/bankrupt/TCRLA_Public/020124.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                   L A T I N   A M E R I C A

            Thursday, January 24, 2002, Vol. 3, Issue 17

                           Headlines


A R G E N T I N A

AES OCEAN: S&P Cuts Credit Ratings To SD On Argentine Woes
AGUAS ARGENTINAS: Argentine Crisis Drives S&P To Slash Ratings
ALTO PALERMO: S&P Lowers Credit Ratings To SD
ARTE GRAFICO: Credit Ratings Cut To SD By S&P
CABLEVISION: Argentina's Recession Sparks S&P Ratings Reduction

CAMUZZI: S&P Downgrades Credit Ratings
CAPEX: S&P Cuts Ratings Amid Argentine Crisis
COMPA„IA DE RADIOCOMUNICACIONES: S&P Trims Credit Ratings
COMPA„IA INTERNACIONAL: S&P Lowers Credit Ratings
CLISA: S&P Cuts Local And Foreign Currency Credit Ratings

CTI HOLDINGS: S&P Trims Local, Foreign Currency Credit Ratings
DISCO SA: S&P Slashes Currency Credit Ratings
EDEN/EDES: S&P Downgrades Credit Ratings To `SD'
EDESUR/EDENOR: S&P Lowers Local, Foreign Currency Credit Ratings
IMAGEN SATELITAL: Credit Ratings Cut By S&P Amid Argentine Crisis

IMPSA: S&P Maintains Local, Foreign Currency Credit Ratings
INVERSORA ELCTRICA: S&P Trims Credit Ratings
MASTELLONE HERMANOS: Standard & Poor's Slashes Credit Ratings
MULTICANAL: Standard & Poor's Downgrades Credit Ratings
PAN AMERICAN: S&P Cuts Currency Credit Ratings To `CCC'

PECOM ENERGIA: S&P Maintains Ratings On Foreign Currency
SIDECO AMERICANA: S&P Downgrades Credit Ratings
SODIGAS PAMPEANA: S&P Trims Credit Ratings To `SD'
TELECOM ARGENTINA: Credit Ratings Cut By S&P
TELEFONICA DE ARGENTINA: S&P Lowers Credit Rating To `SD'

TELEFONICA HOLDING: S&P Cuts Credit Ratings
TGN/TGS: S&P Cuts Local, Foreign Currency Credit Ratings
TRANSENER: S&P Reduces Credit Ratings On Argentine Woes
BANCO RIO: Most Solvent Bank In Argentina, Says President


B R A Z I L

COPEL: Shares Up On Announcement Of Bond Sale


C H I L E

DISPUTADA: Codelco Seeks Bank Loans To Finance Bid


E C U A D O R

EMELEC: Concession Talks Won't Influence Stake Sale


M E X I C O

BANCA SERFIN: S&P Ups Credit Rating On Asset Quality Improvement
BITAL: Two Del Valle Brothers Trade Interest For GIC
GRUPO SIDEK: Second Asset Auction Yields Unacceptable Offers


T R I N I D A D   &   T O B A G O

BWIA: Cuts To Affect All Levels


       - - - - - - - - -


=================
A R G E N T I N A
=================

AES OCEAN: S&P Cuts Credit Ratings To SD On Argentine Woes
----------------------------------------------------------
In a series of related announcements made Monday, Standard and
Poor's included AES Ocean Springs Ltd., with these changes in
its credit ratings:
                                             To        From

- Local currency issuer credit ratings
                                         SD/NM/  CC/Negative/
- Foreign currency issuer credit ratings
                                         SD/NM/  CC/Negative/


AGUAS ARGENTINAS: Argentine Crisis Drives S&P To Slash Ratings
--------------------------------------------------------------
In a Monday series of related announcements, Standard and Poor's
included Aguas Argentinas S.A. with these changes in its credit
ratings:
                                         To            From

- Local currency issuer credit ratings
                                    CCC-/Negative/ CCC+/Negative/
- Foreign currency issuer credit ratings
                                       SD/NM/        CC/Negative/


ALTO PALERMO: S&P Lowers Credit Ratings To SD
---------------------------------------------
In a series of related announcements made Monday, Standard and
Poor's included Alto Palermo S.A. with these changes in its
credit ratings:
                                             To        From

- Local currency issuer credit ratings
                                           SD/NM/  CCC/Negative/
- Foreign currency issuer credit ratings
                                           SD/NM/  CCC/Negative/


ARTE GRAFICO: Credit Ratings Cut To SD By S&P
---------------------------------------------
Monday, in a series of related announcements, Standard and Poor's
included Arte Gr fico Editorial Argentino S.A. with these changes
in its credit ratings:
                                         To          From

- Local currency issuer credit ratings
                                       SD/NM/    CCC-/Watch Neg/
- Foreign currency issuer credit ratings
                                       SD/NM/    CC/Watch Neg/


CABLEVISION: Argentina's Recession Sparks S&P Ratings Reduction
---------------------------------------------------------------
In a series of related announcements Monday, Standard and Poor's
included CableVisi¢n S.A. with these changes in its credit
ratings:
                                   To               From

-  Local currency issuer credit ratings
                             CC/Negative/NR     CCC-/Watch Neg/C
-  Foreign currency issuer credit ratings
                                SD/NM/NR        CC/Watch Neg/C


CAMUZZI: S&P Downgrades Credit Ratings
--------------------------------------
In a Monday series of related announcements, Standard and Poor's
included Camuzzi Argentina S.A., Camuzzi Gas del Sur S.A. and
Camuzzi Gas Pampeana S.A. with these changes in their credit
ratings:

                               To               From

Camuzzi Argentina S.A.

-  Local currency issuer credit ratings
                          CCC/Negative/--      CCC+/Negative/--
-  Foreign currency issuer credit ratings
                          CCC/Negative/--      CCC+/Negative/--

Camuzzi Gas del Sur S.A.

-  Local currency issuer credit ratings
                            SD/NM/--             B/Negative/--
-  Foreign currency issuer credit ratings
                            SD/NM/--             B/Negative/--

Camuzzi Gas Pampeana S.A.

-  Local currency issuer credit ratings
                            CCC/Negative/--      B/Negative/--
-  Foreign currency issuer credit ratings
                            CCC/Negative/--      B/Negative/--


CAPEX: S&P Cuts Ratings Amid Argentine Crisis
---------------------------------------------
In a series of related announcements made Monday, Standard and
Poor's included CAPEX S.A. with these changes in its credit
ratings:

                                   To               From

-  Local currency issuer credit ratings
                           CC/Negative/--       CCC-/Negative/--
-  Foreign currency issuer credit ratings
                              SD/NM/--           CC/Negative/--

CONTACTS:  Enrique Gotz, Chairman
           Alejandro Gotz, Vice Chairman
           948/950 Av Cordoba Dept 5
           Buenos Aires, Argentina
           Phone   +54 110 4322 4884
           URL: http//www.capex.com.ar


COMPA„IA DE RADIOCOMUNICACIONES: S&P Trims Credit Ratings
---------------------------------------------------------
In a series of related announcements Monday, Standard and Poor's
included Compa¤”a de Radiocomunicaciones M¢viles S.A. with these
changes in its credit ratings:

                                   To                From

- Local currency issuer credit ratings
                             CCC+/Negative/--     B-/Negative/--
- Foreign currency issuer credit ratings
                                SD/NM/--        CCC+/Negative/--


COMPA„IA INTERNACIONAL: S&P Lowers Credit Ratings
-------------------------------------------------
Monday, in a series of related announcements, Standard and Poor's
included Compa¤”a Internacional de Telecomunicaciones S.A. with
these changes in its credit ratings:

                                   To                From

- Local currency issuer credit ratings
                              CCC+/Negative/--     B/Negative/--
- Foreign currency issuer credit ratings
                               SD/NM/--          CCC+/Negative/--


CLISA: S&P Cuts Local And Foreign Currency Credit Ratings
---------------------------------------------------------
In a series of related announcements released Monday, Standard
and Poor's included Compa¤”a Latinoamericana de Infraestructura &
Servicios S.A. (CLISA) with these changes in its credit ratings:

                                 To                From

- Local currency issuer credit ratings
                          CC/Negative/--       CCC-/Watch Neg/--
- Foreign currency issuer credit ratings
                          SD/NM/--             CCC-/Watch Neg/--


CTI HOLDINGS: S&P Trims Local, Foreign Currency Credit Ratings
--------------------------------------------------------------
Monday, in a series of related announcements, Standard and Poor's
included CTI Holdings S.A. with these changes in its credit
ratings:

                                To                  From

- Local currency issuer credit ratings
                          CC/Negative/--        CC/Negative/--
- Foreign currency issuer credit ratings
                            SD/NM/--            CC/Negative/--


DISCO SA: S&P Slashes Currency Credit Ratings
---------------------------------------------
In a series of related announcements Monday, Standard and Poor's
included Disco S.A. with these changes in its credit ratings:

                                To                  From

- Local currency issuer credit ratings
                          CCC/Negative/--      B-/Negative/--
- Foreign currency issuer credit ratings
                          SD/NM/--             CCC+/Negative/--


EDEN/EDES: S&P Downgrades Credit Ratings To `SD'
------------------------------------------------
Monday, in a series of related announcements, Standard and Poor's
included Empresa Distribuidora de Energ”a Norte S.A. (EDEN) and
Empresa Distribuidora de Energ”a Sur S.A. (EDES) with these
changes in their credit ratings:

                                       To            From

Empresa Distribuidora de Energ”a Norte S.A. (EDEN)

- Local currency issuer credit ratings
                                      SD/NM/--  CCC-/Negative/--
- Foreign currency issuer credit ratings
                                      SD/NM/--  CC/Negative/--

Empresa Distribuidora de Energ”a Sur S.A. (EDES)

- Local currency issuer credit ratings
                                      SD/NM/--  CCC-/Negative/--
- Foreign currency issuer credit ratings
                                      SD/NM/--  CC/Negative/--


EDESUR/EDENOR: S&P Lowers Local, Foreign Currency Credit Ratings
----------------------------------------------------------------
In a series of related announcements released Monday, Standard
and Poor's included Empresa Distribuidora Sur S.A. (EDESUR) and
Empresa Distribuidora y Comercializadora Norte S.A. (EDENOR) with
these changes in their credit ratings:

                                       To            From

Empresa Distribuidora Sur S.A. (EDESUR)

- Local currency issuer credit ratings
                          CCC-/Negative/--     CCC+/Negative/--
- Foreign currency issuer credit ratings
                          SD/NM/--             CC/Negative/--

Empresa Distribuidora y Comercializadora Norte S.A. (EDENOR)

- Local currency issuer credit ratings
                          CCC-/Negative/--     CCC+/Negative/--
- Foreign currency issuer credit ratings
                          SD/NM/--             CC/Negative/--


IMAGEN SATELITAL: Credit Ratings Cut By S&P Amid Argentine Crisis
-----------------------------------------------------------------
Monday, in a series of related announcements, Standard and Poor's
included Imagen Satelital S.A. with these changes in its credit
ratings:

                                  To                From

- Local currency issuer credit ratings
                            CC/Negative/--      CCC+/Negative/--
- Foreign currency issuer credit ratings
                            SD/NM/--            CCC+/Negative/--


IMPSA: S&P Maintains Local, Foreign Currency Credit Ratings
-----------------------------------------------------------
In a series of related announcements made Monday, Standard and
Poor's maintained the credit ratings of Industrias Metal£rgicas
Pescarmona S.A.I.C.y.F. (IMPSA):

- Local currency issuer credit ratings      SD/NM/
- Foreign currency issuer credit ratings    SD/NM/


INVERSORA ELCTRICA: S&P Trims Credit Ratings
---------------------------------------------
In a Monday series of related announcements, Standard and Poor's
included Inversora El‚ctrica de Buenos Aires S.A. with these
changes in its credit ratings:

                                    To                From

- Local currency issuer credit ratings
                              CC/Negative/--       CC/Negative/--
- Foreign currency issuer credit ratings
                              SD/NM/--             CC/Negative/--


MASTELLONE HERMANOS: Standard & Poor's Slashes Credit Ratings
-------------------------------------------------------------
In a series of related announcements Monday, Standard and Poor's
included Mastellone Hermanos S.A. with these changes in its
credit ratings:

                                    To            From

- Local currency issuer credit ratings
                             CC/Negative/--    CCC/Negative/--
- Foreign currency issuer credit ratings
                             SD/NM/--          CCC/Negative/--


MULTICANAL: Standard & Poor's Downgrades Credit Ratings
-------------------------------------------------------
Monday, in a series of related announcements, Standard and Poor's
included Multicanal S.A. with these changes in its credit
ratings:

                               To                 From

- Local currency issuer credit ratings
                         CC/Negative/NR       CCC-/Watch Neg/C
- Foreign currency issuer credit ratings
                            SD/NM/NR          CC/Watch Neg/C


PAN AMERICAN: S&P Cuts Currency Credit Ratings To `CCC'
-------------------------------------------------------
In a series of related announcements made Monday, Standard and
Poor's included Pan American Energy LLC with these changes in its
credit ratings:

                                To                 From

- Local currency issuer credit ratings
                          CCC+/Negative/--     B+/Negative/--
- Foreign currency issuer credit ratings
                          CCC+/Negative/--     CCC+/Negative/--


PECOM ENERGIA: S&P Maintains Ratings On Foreign Currency
--------------------------------------------------------
Monday, in a series of related announcements, Standard and Poor's
maintained Pecom Energ”a S.A.'s foreign currency issuer credit
ratings of CCC+ with Negative outlook.


SIDECO AMERICANA: S&P Downgrades Credit Ratings
-----------------------------------------------
In a series of related announcements issued Monday, Standard and
Poor's included Sideco Americana S.A. with these changes in its
credit ratings:

                                      To                From

- Local currency issuer credit ratings
                                CC/Negative/--    CC/Negative/--
- Foreign currency issuer credit ratings
                                SD/NM/--          CC/Negative/--


SODIGAS PAMPEANA: S&P Trims Credit Ratings To `SD'
--------------------------------------------------
Monday, in a series of related announcements, Standard and Poor's
included Sodigas Sur S.A. with these changes in its credit
ratings:

                                       To             From

- Local currency issuer credit ratings
                                      SD/NM/--      B/Negative/--
- Foreign currency issuer credit ratings
                                      SD/NM/--      B/Negative/--


TELECOM ARGENTINA: Credit Ratings Cut By S&P
--------------------------------------------
In a series of related announcements Monday, Standard and Poor's
included Telecom Argentina STET-France Telecom S.A. with these
changes in its credit ratings:

                                   To               From

- Local currency issuer credit ratings
                             CCC+/Negative/--     B-/Negative/--
- Foreign currency issuer credit ratings
                             SD/NM/--            CCC+/Negative/--


TELEFONICA DE ARGENTINA: S&P Lowers Credit Rating To `SD'
---------------------------------------------------------
In a series of related announcements released Monday, Standard
and Poor's cut Telef¢nica de Argentina S.A.'s foreign currency
issuer credit rating to SD/NM/.


TELEFONICA HOLDING: S&P Cuts Credit Ratings
-------------------------------------------
Monday, in a series of related announcements, Standard and Poor's
included Telef¢nica Holding de Argentina S.A. with these changes
in its credit ratings:

                                  To               From

- Local currency issuer credit ratings
                           CCC+/Negative/--     B/Negative/--
- Foreign currency issuer credit ratings
                           SD/NM/--             CCC+/Negative/--


TGN/TGS: S&P Cuts Local, Foreign Currency Credit Ratings
--------------------------------------------------------
In a series of related announcements issued Monday, Standard and
Poor's included Transportadora de Gas del Norte S.A. (TGN) and
Transportadora de Gas del Sur S.A. (TGS) with these changes in
their credit ratings:

                                   To            From

Transportadora de Gas del Norte S.A. (TGN)

- Local currency issuer credit ratings
                            CCC-/Negative/--     CCC+/Negative/--
- Foreign currency issuer credit ratings
                            SD/NM/--             CC/Negative/--

Transportadora de Gas del Sur S.A. (TGS)

- Local currency issuer credit ratings
                            CCC-/Negative/--     CCC+/Negative/--
- Foreign currency issuer credit ratings
                            SD/NM/--             CC/Negative/--


TRANSENER: S&P Reduces Credit Ratings On Argentine Woes
-------------------------------------------------------
In a series of related announcements released Monday, Standard
and Poor's included Compan”a de Transporte de Energ”a El‚ctrica
en Alta Tensi¢n TRANSENER S.A. with these changes in its credit
ratings:

                              To                From

- Local currency issuer credit ratings
                          CCC-/Negative/--     CCC+/Negative/--
- Foreign currency issuer credit ratings
                          SD/NM/--              CC/Negative/--



S&P NOTES: Following the recent crisis in the monetary and
economic regime of the Republic of Argentina (SD/--/C), Standard
& Poor's lowered to SD (selective default) its foreign currency
ratings on many Argentine companies. At the same time, most local
currency ratings were also lowered. Where given, the outlook on
all long-term ratings is negative.

The revision of the foreign currency ratings to SD reflects that
the entities affected will find it impossible to meet some of
their foreign currency obligations in a timely manner, due to
sovereign-induced constraints.

Argentine companies face many hurdles, namely:

- Still unclear rules regarding the transferability of funds
abroad to service debt and meet import payments;

- Increased deterioration of creditworthiness, caused by the
depressed Argentine economic environment;

- Unsettling devaluation, which followed the end of U.S. dollar
convertibility;

- Pesification (that is, the mandated change from dollar pricing
to local currency peso pricing) of most prices and tariffs;

- Uncertainties regarding the terms under which the concession
contracts will be renegotiated; and

- Difficulties in transferring funds within the financial system.

According to Standard & Poor's criteria, the SD rating applies
only if the issuer defaults selectively on some of its
obligations while honoring others in a timely fashion. Therefore,
the rating actions do not imply the expectation of general
insolvency for the entities involved. Standard & Poor's believes
that those few entities whose foreign currency ratings were not
revised to SD have sufficient offshore operations, or have strong
parental support in place to offset the constraints described
above.

On the other hand, Standard & Poor's local currency ratings
reflect an issuer's overall capacity to generate sufficient local
currency resources to meet its financial obligations, both in
local and foreign currency, absent the risk of direct sovereign
intervention that may constrain payment of foreign currency debt.
The local currency ratings of most Argentine entities were
lowered reflecting the lack of liquidity in the financial system,
the further contraction in consumer spending as a result of the
deposit withdrawal restrictions, and macroeconomic uncertainties,
and the increased regulatory risk for utilities.

Standard & Poor's believes that price- and cost-setting
mechanisms have been severely altered through changes in
currency, or through government price fixing, intervention, or
regulation. These mechanisms, defined as the formula or method
that governs price-setting, are a crucial factor in determining a
company's or a utility's creditworthiness; they have a direct
effect on a company's revenues, and, therefore, on its capacity
to maintain stable financial performance. The uncertainty
regarding any potential price adjustments to compensate for
devaluation, inflation, and, in the case of utilities, the
unresolved pass-through of dollar-denominated costs, could
seriously affect cash flows.

Standard & Poor's will continue to monitor the effects of the
evolving monetary and economic regime on the creditworthiness of
Argentine companies.

NR: Not rated. NM: Not meaningful. SD: Selected default.

S&P Analysts:  Marta Castelli, Buenos Aires
               Tel. (54) 114-891-2128

               Lidia Polakovic, Buenos Aires
               Tel. (54) 114-891-2130

               Laura Feinland Katz, New York
               Tel. (1) 212-438-7893

               Eduardo Uribe, Mexico City
               Tel. (52) 55-5279-2008



BANCO RIO: Most Solvent Bank In Argentina, Says President
---------------------------------------------------------
Emilio Botin, Santander Central Hispano (SCH) President,
considers the Spanish financial group's Argentine subsidiary,
Banco Rio de la Plata, as "the most solvent, best managed and
most efficient" bank in the country.

According to a report in Business News Americas, the "accountable
value" of Banco Rio "is covered in totality" by SCH's Argentine
fund, in which it now maintains EUR1.29 billion (US$1.14
billion), up from EUR1 billion it had set aside by the end of
last year's third quarter.

SCH saw 2001 profits increase 10.1 percent to EUR2.49 billion
(US$2.19 billion), as Argentina's financial crisis caused the
bank to miss previous guidance of 16 percent growth, SCH said in
a statement sent to Spain's securities regulator CNMV.

Given the uncertainty arising from Argentina, SCH said that in
2002 it would concentrate on improving resources, strengthening
its balance sheet and prudently managing credit risk.

CONTACTS:  SANTANDER (SCH)
           Emilio Botin-sanz De Sautuola Y Garcia De Los Rios -
           Chairman, OR
           Angel Corcostegui Guraya - First Deputy Chairman, OR
           Jaime Botin-sanz De Sautuola Y Garcia De Los Rios -
           Second Deputy Chairman, OR
           Matias Rodriguez Inciarte - Deputy Chairman, OR
           Angel Corcostegui Guraya - Deputy Chairman & Chief
           Executive

           SCH Address:
           Paseo De Pereda, Numeros 9 AL 12
           Santander, Spain
           Phone   +34 94 2206100
           http://www.santandercentralhispano.es/

           BANCO RIO - Investor Relations:
           Ana Patricia B. S. de Sautuola y O'Shea, Chairman
           Jose L. E. Cristofani, Executive Vice Chairman and CEO
           Pablo Caride, Corporate Finance
           Bartolome Mitre 480
           1036 Buenos Aires, Argentina
           Phone: +54-(0)14-341-1081-1580
           Fax: +54-(0)14-341-1074-1084

           LEGAL ADVISOR
           Shearman & Sterling
           599 Lexington Avenue
           New York, NY 10022-6069, USA
           Telephone: (+1 212) 848-4000
           Fax: (+1 212) 848-7179
           Contact: Robert C. Treuhold, Firm Managing Partner



===========
B R A Z I L
===========

COPEL: Shares Up On Announcement Of Bond Sale
---------------------------------------------
Cia. Paranaense de Energia (COPEL), the utility that distributes
and generates electricity in Brazil's south, saw its preferred
shares climb 0.3 percent to 15.90 reais, reports Bloomberg.

The increase in the Company's stock price follows an announcement
that it plans to sell 500 million reais ($212 million) in local
currency bonds to pay off an early retirement on its Eurobonds
maturing in 2005.

According to Copel Financial Director, Ricardo Portugal, the
slowing growth in the U.S. and Europe will prompt Copel's
bondholders to exercise its May option for an early retirement on
their bonds.

Copel raised $150 million in 1997 with the sale of those bonds.

The put option is due May 2, when Copel will have to pay $14.6
million in interest and $148.6 million in principal if
bondholders opt for an early retirement of their bonds.

CONTACTS:  Ingo Henrique Hbert, Chief Executive Officer
           Deni Lineu Schwartz, Chief Government Relatins Officer
           Ferdinando schauenburg, CFO

           THEIR ADDRESS:
           Companhia Paranaense de Energia (COPEL)
           Dulcidio, 800
           Batel  80420-170 Curitiba - PR
           Brazil
           Phone   +55 41 322-3535

           Home Page http://www.copel.com

           INVESTOR RELATIONS
           Ricardo Portugal Alves
           Email: Ricardo.portugal@copel.com
           AND
           Othon M„der Ribas
           Email: othon@copel.com



=========
C H I L E
=========

DISPUTADA: Codelco Seeks Bank Loans To Finance Bid
--------------------------------------------------
Chilean copper producer Codelco, one of the bidders for
ExxonMobil Corp's Disputada de las Condes mine, is seeking bank
loans to finance a US$1 billion to US$1.2 billion for the
upcoming tender, says Bloomberg.

According to banking sources, the Chilean state-run company is
making an effort to secure $150 million in loans from seven or
eight banks to satisfy the bid if it wins the auction for
Disputada. Subsequently, Codelco will sell bonds, backed by
Disputada, to repay the loans after the purchase.

Codelco is competing with operations like Brazilian mining
company, Cia. Vale do Rio Doce and Anglo American Plc, for the
mine, which ExxonMobil put up for sale last year.

Codelco wants to merge Disputada with its Andina division, on
part of the same copper deposit in the Andes Mountains, west of
Santiago. The merger would allow the two copper mines to share
processing equipment and other expenses, reducing production
costs.

ExxonMobil put Disputada up for sale as part of a strategy to
exit non-oil businesses worldwide after its merger with Mobil Oil
Co. According to Market analysts, U.S.-based Exxon plans to
complete the sale by the end of the month.



=============
E C U A D O R
=============

EMELEC: Concession Talks Won't Influence Stake Sale
---------------------------------------------------
Talks between private companies and creditors of Ecuadorian
electricity company, Emelec, over a concession for the
distribution of electricity in Guayaquil is now taking place away
from the public eye, says Business News Americas.

According to a government source, these talks will not influence
the auction of a controlling stake in Emelec. However, in any
case, as discussions involve the Emelec trusteeship and a company
that has acquired the bidding rules for the concession, the
government is interested to know the exact terms of the
negotiations.

Ecuadorian electric council, Conelec is calling for bids for
Emelec's rescinded concession to distribute electricity in
Guayaquil, a process for which AES and Spain's Union Fenosa have
acquired the bidding rules. Emelec's assets, valued at US$111
million, will also be sold along with the concession.

The bidding will be open until February 7. Bids will be received
February 18, and the concession will be awarded February 25, the
government source related.

Conelec VP Jorge Trujillo revealed that AES said last week it
would acquire 49 percent of Emelec shares if successful in its
bid for the concession, in accordance with an agreement signed
with the owners of the Emelec trusteeship, Progreso Depositors
Trust.

In March 2001, Conelec canceled Emelec's concession after the
Company broke its contract with the state, having accumulated
massive debts and failing to maintain service standards. Emelec
owner, Fernando Aspiazu was arrested, and the then-government
decided to sell the Company to reimburse clients of Banco
Progreso, also owned by Aspiazu, which was declared bankrupt.

The Progreso Depositors Trust was then formed with clients of the
Banco Progreso, who are owed US$65 million. When Emelec's assets
are sold the holders of Banco del Progreso bonds will be paid, a
source from the Agencia de Garantia de Depositos (AGD) said.

Banco del Progreso still owes some US$38.7 million to 4,961
former customers, the AGD source said.

CONTACT:  Electrica del Ecuador (EMELEC)
          Tel‚fonos: (593-4) 248000 - 248003
          Fax: (593-4) 248051
          E-mail: asalcedo@teconet.net



===========
M E X I C O
===========

BANCA SERFIN: S&P Ups Credit Rating On Asset Quality Improvement
----------------------------------------------------------------
Standard & Poor's raised the credit rating of Banca Serfin SA, a
subsidiary of Mexican financial group Grupo Financiero Santander
Serfin SA, to one notch below investment grade, reports
Bloomberg.

S&P rated Serfin's foreign debt with "BB+," up one notch from
"BB," and revised the bank's outlook to stable from positive, a
move, which indicates that the rating agency isn't likely to
upgrade it again soon.

The rating upgrade reflected the bank's improvement in its asset
quality mainly through charge-offs, selling low-quality or
nonperforming loans and increasing reserves during the past two
years, S&P cited.

As a result of the upgrade Serfin, which is Mexico's third-
largest bank and a unit of Spain's largest bank Banco Santander
Central Hispano SA, is likely to see its borrowing costs drop in
international capital markets as the risk of a default has
declined.

The Mexico City-based bank has been able to reduce its non-
performing loans to 4 percent of its loan portfolio, from 11
percent two years ago.


BITAL: Two Del Valle Brothers Trade Interest For GIC
----------------------------------------------------
Antonio del Valle reached a deal with his brothers, Adolfo and
Ignacio, to give up their estimated 24 percent interest in
Mexico's No. 4 bank, Grupo Financiero Bital, reports Mexico City
daily el Economista.

The brothers are giving up their Bital shares in return for
control of metallurgical company, Grupo Industrial Camesa.
The Borrondo and Esteve families transferred to the Del Valles
some 60 percent of Camesa, bringing the Del Valles' total to 90
percent.

Bital's remaining owners will now concentrate on the task of
finding US$400 million in financing demanded by the National
Banking and Securities Commission (CNBV) by May. The bank is
negotiating with GE Capital and ING (NYSE:ING), as well as
several investment funds.

CONTACTS:  Engr Luis Berrondo Avalos, Chairman
           Atty Jaime Ruiz Sacristan, CEO
           German Osuna Castelan,  General Manager Finance
           Atty Fenando Ysita Del Hoyo, Secretary

           THEIR ADDRESS:
           Grupo Financiero Bital SA de CV
           Paseo de la Reforma No 243 Cuauhtemoc
           Mexico DF    06500
           Mexico
           Phone   +52 5 721 5286
           Home Page http://www.bital.com.mx


GRUPO SIDEK: Second Asset Auction Yields Unacceptable Offers
------------------------------------------------------------
In an official company press release, Grupo Sidek, S.A. de C.V.
(OTC-GPSAY and OTC-GPSBY) ("Sidek") announced that the second
bidding procedure contemplated under the alternative plan for the
sale of its distressed assets took place Tuesday.

During the second bidding procedure, five offers were received in
connection with four of the eleven packages that were not sold in
the first round held November 27, 2001.

Grupo Sidek decided not to accept any of the offers. All offers
were below the minimum reference prices established in connection
with the packages, previously approved by the Sidek Creditor
Trust, the Grupo creditors' representative.

CONTACT:  Arturo Perez Courtade, Legal Director
          Alejandro Giordano Trejo, Deputy Director
          Tel. +523-678-5911/
          Web site:  http://www.sidek.com.mx



=================================
T R I N I D A D   &   T O B A G O
=================================

BWIA: Cuts To Affect All Levels
-------------------------------
BWIA President, Conrad Aleong, confirmed that no one and no
destination will be spared from the airline's job cuts and flight
cutbacks, reports The Trinidad Guardian.

According to Aleong, the exact number of workers to be fired has
yet to be determined, but he was certain employees have to go if
the airline is to avoid losing an estimated US$30 million in
revenue during the next financial year.

Aleong said BWIA has to reduce its wage bill because passenger
loads fell 23 percent during October and November last year,
immediately after the September 11 terrorist attack on the United
States. Loads are now down 12 percent, still unacceptable.

"If anything, we took too long to move to cut employee costs
because the US$9 million profit we made up to the third quarter
of last year was gone by November due to the fall in passengers,"
said Aleong.

Meanwhile, BWIA has also decided to cut travel agents' commission
by one third from 9 percent to 6 percent.

"Why should we be paying nine per cent in commission when
American Airlines is paying six per cent?" questioned Aleong.

BWIA has taken all the measures possible to avoid sending
employees home, including seeking to reduce fuel costs, reducing
the commission paid to travel agents, renegotiating ground
handling agreements, making the meals more affordable and
returning two MD83 aircraft which were on lease, explained
Aleong.

No one could argue that BWIA should not look at its wage bill
when of the US$700,000 it spends each day, $200,000 of that is
spent on employees. The airline is also seeking to reduce costs
by removing the ageing L1011 from the London route and replacing
it with newer, cost efficient planes.

Even worse, BWIA cannot seek new, more profitable routes in the
United States because the new Piarco International Airport was
recently downgraded to a category two airport.



               ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Fe Ong Va¤o, Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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