/raid1/www/Hosts/bankrupt/TCRLA_Public/031020.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

          Monday, October 20, 2003, Vol. 4, Issue 207

                          Headlines


A R G E N T I N A

AEROLINEAS ARGENTINAS: Continues to Defy U.S.'s Requests
AVICOLA SAN CAYETANO: Seeks Court Permission To Reorganize
DELLI: Court OK's Reorganization Petition
BANCO BISEL: Moody's Assigns `D' Rating to $200M of Bonds
BETTERWARE: Enters Bankruptcy on Court Orders

CIE: Local S&P Assigns Default Ratings To Bonds
DOLL TOYS: Receiver Checks Claims For Bankruptcy
FRIGODOS: Enters Bankruptcy On Court Orders
IANINI HERMANOS: Court Orders Bankruptcy
IMPORCAB: Individual Reports Due Today

MASTELLONE HERMANOS: Argentine S&P Rates Bonds `D'
MIS AMIGOS: Receiver Checks Claims For Bankruptcy
PLASTICO CASTELAR: Receiver Validates Claims For Bankruptcy
RUCA CON: Court Assigns Receiver For Bankruptcy
SERVINTSA: Receiver Prepares Individual Reports For Bankruptcy

TARJETA NARANJA: Moody's Rates $200M of Bonds `D'
TELECOM ARGENTINA: Shares Jump Following Investment News
WULI: Enters Bankruptcy on Court Orders


B A R B A D O S

C&W BARBADOS: FTC Sets New Date For Hearing


B O L I V I A

BANCO BISA: Moody's Maintains Ratings at Current Levels
BANCO DE CREDITO: Ratings, Outlook Remain at Current Levels
BANCO GANADERO: Moody's Maintains Ratings Following Bank Holiday
BANCO DE LA NACION: Ratings Remain at Current Levels
BANCO MERCANTIL: Ratings Remain at Current Levels After Holiday

BANCO NACIONAL: Moody's Maintains Stable Outlook on Ratings
BANCO UNION: Ratings, Outlook Remain at Current Levels
FONDO FINANCIERO: Moody's Maintains Ratings at Current Levels


B R A Z I L

EMBRATEL: Wins Invitation To Tender for 0800 Service Provision


D O M I N I C A N   R E P U B L I C

SAN PEDRO: Fitch Places Ratings on Rating Watch Negative


J A M A I C A

AIR JAMAICA: U.S. Dept. of Transportation Levies $50K Fine
JPSCO: Conflict with KSAC Worsens


M E X I C O

VITRO: Fitch Downgrades Ratings to 'BB-'

     -  -  -  -  -  -  -  -

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

AEROLINEAS ARGENTINAS: Continues to Defy U.S.'s Requests
--------------------------------------------------------
Aerolineas Argentinas S.A., Argentina's national flag carrier,
issued a communique Thursday, saying it would continue to pay its
airport taxes in devalued pesos, not dollars, relates Dow Jones.

The communique was issued after the airline received a document
sent Thursday by the U.S. Department of Transport to Argentina's
Foreign Ministry, in which U.S. authorities make a number of
"proposals" to be considered by the airline.

According to the document, those proposals "tend to establish
accords that create equity in the treatment of duties."

Aerolineas Argentinas said its legal department is "studying" the
document "to fix its position" within the ten days required by
U.S. authorities.

The U.S. has been calling for the Argentinean government to try
to convince its flagship airline to pay taxes in U.S. dollars.
The US authorities have complained that Aerolineas Argentinas
pays airport taxes in pesos while the other airlines pay their
airport taxes in U.S. dollars.

Meanwhile, Aerolineas Argentina's accused the Argentine
government of backing the U.S. position.

In the communique, the airline accused Argentina's Undersecretary
of Commercial Air Transport, Ricardo Cirielli, of failing to push
the Company's case in a meeting with U.S. authorities last month.

"The results that we can now see demonstrate the deficient
performance of the officials from the Undersecretary of
Commercial Air transport," the communique said.

On Tuesday, company chairman Antonio Mata was blunter, accusing
Cirelli of openly "discriminating" against Aerolineas Argentina.


AVICOLA SAN CAYETANO: Seeks Court Permission To Reorganize
----------------------------------------------------------
Avicola San Cayetano S.R.L., which is domiciled in Buenos Aires
has submitted a motion for "Concurso Preventivo" at the city's
Court No. 9, reports Argentine news source Infobae. If approved,
the Company will undergo the reorganization process. In the
meantime, the source did not mention whether the court, which is
assisted by the city's Clerk No. 17, is likely to approve the
petition.

CONTACT:  Avicola San Cayetano S.R.L.
          Ave Cordoba 657
          Buenos Aires


DELLI: Court OK's Reorganization Petition
-----------------------------------------
Buenos Aires' Court No. 15 approved a petition to undergo
reorganization filed by local company Delli S.A., relates
Argentine news portal Infobae. Clerk No. 29 aids the court on the
case.

The Company is placed in the charge of local accountant,
Adalberto Abel Corbelleri, who was assigned as the Company's
receiver. Mr. Corbelleri will verify creditors' claims until
December 3 this year.

The court orders the receiver to submit the individual reports on
February 18, 2004. These reports are to be prepared after the
credit verification process is completed. The receiver will then
prepare the general report after the individual reports are
processed at court. This report must be submitted to the court on
March 31 next year.

The court also set the informative assembly to take place on
August 5 next year.

CONTACT:  Delli S.A.
          Tucuman 1673
          Buenos Aires

          Adalberto Abel Corbelleri
          Carabobo 238
          Buenos Aires


BANCO BISEL: Moody's Assigns `D' Rating to $200M of Bonds
---------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. assigned
default ratings to bonds issued by Argentine company Banco Bisel
S.A. recently. A report by the Comision Nacional de Valores, the
country's securities regulator indicates that the `D' rating was
based on the Company's finances as of June 30 this year.

The rating applies to US$200 million worth of bonds called
"Programa Global de Emisi¢n de Obligaciones Negociables
Subordinadas", the CNV relates. The bonds were classified as
"program", but the maturity date was not indicated.


BETTERWARE: Enters Bankruptcy on Court Orders
---------------------------------------------
Buenos Aires' Court No. 26 ruled that Betterware de Argentina
S.A. is "Quiebra Decretada", meaning, that the Company is now
under bankruptcy. Clerk No. 51 aids the court on the case.

Buenos Aires accountant Enrique Cabello takes charge as the
Company's receiver. He will verify claims until November 19 this
year. The individual reports will be prepared after that. These
reports are to be presented to the court on February 5 next year.

The receiver will also prepare a general report after the
individual reports are processed at the court. This report must
be filed at the court on March 18 next year. The Company's assets
may then be liquidated to pay off its creditors.

CONTACT:  Betterware de Argentina S.A.
          Bernardo de Irigoyen 330
          Buenos Aires

          Enrique Cabello
          Aguaribay 6736
          Buenos Aires


CIE: Local S&P Assigns Default Ratings To Bonds
-----------------------------------------------
A total of US$220 million of corporate bonds issued by local
company Compania de Inversiones de Energia S.A. received default
ratings from Standard & Poor's International Ratings, Ltd.
Sucursal Argentina.

Argentina's securities regulator, the CNV described the bonds as
"Obligaciones Negociables autorizadas por AGE de fecha 13.12.96",
under "Simple". The bonds matured in April last year.

S&P said that the rating, based on the Company's financial health
as of the end of June this year, is assigned to financial
obligations that are in default.


DOLL TOYS: Receiver Checks Claims For Bankruptcy
------------------------------------------------
Daniel Alejandri Macri, an accountant from Buenos Aires, is
taking charge as receiver for local company Doll Toys S.A.,
reports Argentine news source Infobae. He will verify creditors'
claims until November 26.

The city's Court No. 1 handles the Company's case with assistance
from Clerk No. 2. Infobae, however, did not mention whether the
court has set the deadlines for the submission of the receiver's
reports.

CONTACT:  Daniel Alejandro Macri
          Simbron 5742
          Buenos Aires


FRIGODOS: Enters Bankruptcy On Court Orders
-------------------------------------------
Frigodos S.A. enters bankruptcy on orders from Buenos Aires'
Court No. 1, according to a report by Argentine news portal
Infobae. Local accountant Lajbisz Barg was assigned as the
Company's receiver.

The credit verification process will close on November 24 this
year. Creditors are advised to present their claims to the
receiver for authentication before that date. The receiver will
present the results of the validation process to the court
through the individual reports. The receiver will also prepare a
general report on the process.

However, Infobae did not mention whether the court has set the
deadlines for the submission of the receiver's reports.

CONTACT:  Lajbisz Barg
          Paraguay 2630
          Buenos Aires


IANINI HERMANOS: Court Orders Bankruptcy
----------------------------------------
Ianini Hermanos S.A. enters bankruptcy on orders from the city's
Court No. 8. A report from Argentine news portal Infobae relates
that the court declared the Company "Quiebra". Clerk No. 15 aids
the court on the case.

To determine the nature and amount of the Company's debts, the
receiver will verify creditor's claims. The court ordered the
receiver to authenticate claims until December 18. The receiver
will then prepare the individual reports, which are to be
submitted on March 4 next year.

The general report, which prepared after the individual reports
are processed at court, is to be submitted on April 20 next year.
The Company's assets will be liquidated at the end of the process
to reimburse creditors.

CONTACT:  Maria Cenatiempo
          Ave de Mayo
          Buenos Aires


IMPORCAB: Individual Reports Due Today
--------------------------------------
The individual reports for the bankruptcy of Imporcab S.A. must
be presented to the court today. These were prepared after the
credit verifications were completed earlier this year.

The receiver, Mr. Juan Jose Colace, who was appointed by the
court, will prepare the general report, which is to be submitted
to the court on November 1 this year. The Company's assets may
then be liquidated to reimburse its creditors.

CONTACT:  Juan Jose Colace
          Presidente Peron 1509
          Buenos Aires


MASTELLONE HERMANOS: Argentine S&P Rates Bonds `D'
--------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. assigns default
ratings to corporate bonds issued by Mastellone Hermanos S.A.,
relates the Comision Nacional de Valores, Argentina's securities
regulator.

Classified under "Simple Issue", the bonds were classified as
"Obligaciones Negociables, autorizadas por AGE de fecha 28.8.97."
the CNV relates. The bonds, worth a total of US$225 million,
mature on April 1, 2008.

Moody's said that the rating, based on the Company's finances as
of the end of June this year, is assigned to bonds that are
currently in default.


MIS AMIGOS: Receiver Checks Claims For Bankruptcy
-------------------------------------------------
Mis Amigos S.R.L., based in Buenos Aires, is in the hands of its
receiver, Ms. Maria Cenatiempo. The receiver, which is appointed
by the city's Court No. 3, will validate creditors' claims until
December 1 this year. This part of the bankruptcy process
determines the amount and nature of the Company's debts.

After that date, the receiver will prepare the individual
reports, which are to be submitted to the court on February 16
next year. The general report must follow in March 29.

The court, which works with Clerk No. 5 on the case, is likely to
order the liquidation of the Company's assets at the end of the
process. Proceeds will be used to reimburse the Company's
creditors.

CONTACT:  Maria Cenatiempo
          Ave de Mayo 1365
          Buenos Aires


PLASTICO CASTELAR: Receiver Validates Claims For Bankruptcy
-----------------------------------------------------------
Ms. Andrea Cetlinas, an accountant from Buenos Aires is verifying
creditor's claims for the bankruptcy of local company Plasticos
Castelar S.R.L..  Creditors must have their claims verified
before December 16.

The city's Court No. 2 handles the Company's case with assistance
from Clerk No. 3. The court also requires the receiver to prepare
the individual and general reports. The source, however, did not
reveal the deadlines for the submission of these reports.

CONTACT:  Plasticos Castelar S.R.L.
          Castellar 368
          Buenos Aires

          Andrea Cetlinas
          Lavalle 1678
          Buenos Aires


RUCA CON: Court Assigns Receiver For Bankruptcy
-----------------------------------------------
Argentine accountant Juan Carlos Pitrelli was assigned as
receiver for the bankruptcy of local company Ruca Con S.A.,
according to a report from Infobae. As ordered by the court, the
receiver will authenticate creditors' claims until March 22 next
year.

Buenos Aires' Court No. 10 holds jurisdiction over the Company's
case. The court requires the receiver to hand in the individual
reports on May 6, 2004. These reports are to be prepared after
upon the completion of the credit verification process.

The receiver will prepare the general report after the individual
reports are processed at court. This must be submitted to the
court, which works with the city's Clerk No. 20, on June 18 next
year.

CONTACT:  Juan Carlos Pitrelli
          Ave de Mayo 1260
          Buenos Aires


SERVINTSA: Receiver Prepares Individual Reports For Bankruptcy
--------------------------------------------------------------
Creditors of Argentine company Servintsa S.A. must have their
claims verified by the Company's receiver as the deadline for
verifications expires today. The verification process, which
determines the amount and nature of the Company's debts, will be
followed by the preparation of the individual reports.

The Company's receiver, Mr. Victor Roberto Bellaria, has 42 days
to prepare the individual reports. Buenos Aires' Court No. 25,
which handles the Company's case, requires the individual reports
to be filed on December 2 this year.

The receiver will also prepare a general report after the
individual reports are processed at court. This must be presented
to the court on February 18 next year.

CONTACT:  Victor Roberto Bellaria
          Uruguay 660
          Buenos Aires


TARJETA NARANJA: Moody's Rates $200M of Bonds `D'
-------------------------------------------------
A total of $200 million of corporate bonds issued by Tarjeta
Naranja S.A. gets a `D' rating from Moody's Latin America
Calificadora de Riesgo S.A., relates the Comision Nacional de
Valores S.A., Argentina's securities regulator. The given rating
was based on the Company's finances as of the end of June this
year.

The bonds were described as "Programa de Obligaciones Negociables
de Corto y Mediano Plazo" and classified under "Program". The
maturity date, however, was not indicated. The assigned ratings
indicate that the bonds are currently in default.


TELECOM ARGENTINA: Shares Jump Following Investment News
--------------------------------------------------------
Shares of Telecom Argentina Stet-France Telecom SA closed 0.8%
higher at ARS3.83 on Thursday after the Company, along with three
other telecommunications firms, announced they would invest
ARS500 million to improve networks and systems in Argentina.

Telecom Argentina said its contribution would be ARS200 million,
which will be spent on modernizing its cellular technology,
relates Dow Jones.

Analysts said Telecom Argentina's shares were already due for a
recovery after falling 3.3% last week. Though the Company has
shown some volatility in the last few weeks, its medium term
outlook is positive because of expectations for its ongoing debt
restructuring and investment in the telecom sector.

But analysts also warned that Telecom Argentina and other
privatized utility companies could be in for a bumpy ride because
the government hasn't shown any signs of increasing long-frozen
utility rates despite being granted the authority to do so by
Congress earlier this month.

CONTACT:  TELECOM ARGENTINA STET - FRANCE TELECOM SA(TELECOM)
          Alicia Moreau de Justo 50, 10th Floor
          Capital Federal (1107) Repoblica Argentina
          Phone: +54 11 4968 4000
          Home Page: http://www.telecom.com.ar
          Contacts:
          Alberto J. Ricciardi, Chief Financial Officer
          Elvira Lazzati, Finance Director
          Pedro Insussarry, Investor Relations Manager
          Phone: (5411) 4968-3626/3627
          Fax: (5411) 4313-5842/3109
          Email: inversores@intersrv.telecom.com.ar


WULI: Enters Bankruptcy on Court Orders
---------------------------------------
Buenos Aires' Court No. 2 ordered the bankruptcy of local company
Wuli S.A., relates Argentine news source Infobae. The Company is
now in the hands of local accountant Jorge Feito, who was
designated as the Company's receiver.

Working with Clerk No. 3, the court ordered the receiver to
verify creditors' Claims until December 18 this year. After that
date, the receiver will prepare the individual reports, followed
by the general report. However, the source did not mention
whether the court has set the deadlines for the submission of
these reports.

CONTACT:  Wuli S.A.
          Parana 326
          Buenos Aires

          Jorge Feito
          Medrano 537
          Buenos Aires



===============
B A R B A D O S
===============

C&W BARBADOS: FTC Sets New Date For Hearing
-------------------------------------------
The Barbadian Fair Trading Commission (FTC) has set a new date
for Cable & Wireless to plead its case before it for an increase
in domestic phone rates and the introduction of metered rates,
reports the Barbados Advocate.

November 24 was chosen following pleas from several of the 17
intervenors that they needed more time to fully prepare their
cases and despite word from C&W that it was ready to proceed on
the previously announced date of October 29.

And after missing a number of deadlines including those relating
to submission of expert witnesses, affidavits and filing briefs,
intervenors have been given until November 7 to do so.

The report suggests that the new dates were handed down in a new
Procedural Order following a procedural conference on the public
hearing into the telecommunications company's rate adjustment
application.



=============
B O L I V I A
=============

BANCO BISA: Moody's Maintains Ratings at Current Levels
-------------------------------------------------------
Moody's is maintaining Banco Bisa S.A.'s ratings at current
levels with a stable outlook.

The ratings affected are:

- Bank Financial Strength Rating                 E+
- Global local currency deposit rating           Caa1
- Long-term foreign currency deposit rating      Caa1
- Short-term foreign currency deposit rating     Not Prime
- Long-term foreign currency issuer rating       Caa1


BANCO DE CREDITO: Ratings, Outlook Remain at Current Levels
-----------------------------------------------------------
Moody's is maintaining Banco de Credito de Bolivia S.A.'s ratings
at current levels with a stable outlook.

The ratings affected are:

- Bank Financial Strength Rating                 E
- Global local currency deposit rating           Caa1
- Long-term foreign currency deposit rating      Caa1
- Short-term foreign currency deposit rating     Not Prime
- National Scale Rating                          A1.bo


BANCO GANADERO: Moody's Maintains Ratings Following Bank Holiday
----------------------------------------------------------------
Moody's is maintaining the ratings of Banco Ganadero S.A.
(Bolivia) at current levels with a stable outlook.

The ratings affected are:

- Bank Financial Strength Rating                 E
- Global local currency deposit rating           Caa2
- Long-term foreign currency deposit rating      Caa2
- Short-term foreign currency deposit rating     Not Prime
- National Scale Rating                          Baa3.bo


BANCO DE LA NACION: Ratings Remain at Current Levels
----------------------------------------------------
Moody's is maintaining the ratings of Banco de la Nacion
Argentina (Bolivia) at current levels with a stable outlook.

The ratings affected are:

- Global local currency deposit rating           Caa2
- Long-term foreign currency deposit rating      Caa2
- Short-term foreign currency deposit rating     Not Prime
- National Scale Rating                          Baa2.bo


BANCO MERCANTIL: Ratings Remain at Current Levels After Holiday
---------------------------------------------------------------
Moody's is maintaining the ratings of Banco Mercantil S.A.
(Bolivia) at current levels with a stable outlook.

The ratings affected are:

- Bank Financial Strength Rating                 E
- Global local currency deposit rating           Caa1
- Long-term foreign currency deposit rating      Caa1
- Short-term foreign currency deposit rating     Not Prime
- National Scale Rating                          A1.bo


BANCO NACIONAL: Moody's Maintains Stable Outlook on Ratings
-----------------------------------------------------------
Moody's is maintaining Banco Nacional de Bolivia S.A.'s ratings
at current levels with a stable outlook.

The ratings affected are:

- Bank Financial Strength Rating                 E
- Global local currency deposit rating           Caa1
- Long-term foreign currency deposit rating      Caa1
- Short-term foreign currency deposit rating     Not Prime
- National Scale Rating                          A2.bo


BANCO UNION: Ratings, Outlook Remain at Current Levels
------------------------------------------------------
Moody's is maintaining the ratings of Banco Union S.A. (Bolivia)
at current levels with a stable outlook.

The ratings affected are:

- Bank Financial Strength Rating                 E
- Global local currency deposit rating           Caa2
- Long-term foreign currency deposit rating      Caa2
- Short-term foreign currency deposit rating     Not Prime
- National Scale Rating                          Baa3.bo


FONDO FINANCIERO: Moody's Maintains Ratings at Current Levels
-------------------------------------------------------------
Moody's is maintaining Fondo Financiero Privado FIE S.A.'s
ratings at current levels with a stable outlook.

The ratings affected are:

- Bank Financial Strength Rating                 E
- Global local currency deposit rating           Caa2
- Long-term foreign currency deposit rating      Caa2
- Short-term foreign currency deposit rating     Not Prime
- National Scale Rating                          Baa3.bo

Moody's is maintaining a stable outlook on both the local and
foreign currency deposit ratings for the banks mentioned above
following the recent bank holiday prompted by the civil unrest in
major cities.

The Caa1 ratings indicate banks with the largest deposit market
shares, the very banks that would be more likely to receive
institutional support relative to those rated Caa2. The Caa2
ratings also reflect weaker earnings capacity and balance sheets
at the respective banks.

At their current levels, the ratings incorporate the risks of a
bank holiday, as well as other disruptions to the payment system,
including access to deposits, or result in losses of up to 30% to
depositors. A change in outlook could, however, arise should the
situation deteriorate dramatically and lead to an increase in the
potential severity of loss to depositors.



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

EMBRATEL: Wins Invitation To Tender for 0800 Service Provision
--------------------------------------------------------------
On October 9 Embratel won the invitation to tender launched by
Agˆncia Nacional de Telecomunica‡oes (Anatel) for the supply of
0800 service in regions 1 (Amazonas, Par , Amap , Roraima,
Maranhao, Piau¡, Cear , Rio Grande do Norte, Para¡ba, Sergipe,
Pernambuco, Bahia, Alagoas, Minas Gerais, Esp¡rito Santo and Rio
de Janeiro) and 3 (Sao Paulo). The three-year contract will bring
in R$ 4,4 million yearly to Empresa Brasileira de
Telecomunica‡oes. Brasil Telecom, Pegasus and Telef“nica. took
part in the invitation.

According to Embratel's director of Corporate Sales- Government,
Maria Teresa Lima, 0800 service will be provided through
Embratel's fully digital Intelligent Network with nationwide
coverage, which permits more flexibility and the implementation
of additional facilities including origin selection; rerouting in
case of congestion or customer's busy terminal; coverage area
restriction; waiting list; monthly reports of attended and not
attended routed calls.

"This is the 0800 used by telecommunications users and by people
in general to contact the call center of the telecommunications
regulation agency, a service requiring high quality and
availability level", explains Maria Teresa Lima. She reminds that
Anatel will keep the same number used to date: 0800 33 2001.

The calls made from Region 1 will be routed to Anatel in Rio de
Janeiro. From Rio they will be forwarded through a dedicated link
to the Sao Paulo Call Center. The calls made from Region 2 will
be routed to Anatel in Bras¡lia. Next they will be forwarded to
the Sao Paulo Call Center as well. Finally, the calls made from
the state of Sao Paulo will be routed directly to the call center
located in the city of Sao Paulo. The links interconnecting
Bras¡lia to Sao Paulo and Rio de Janeiro will also be supplied by
Empresa Brasileira de Telecomunica‡oes.

Embratel is the premium telecommunications provider in Brazil,
offering a wide range of telecommunication services, such as
advanced voice, high-speed data transmission, internet, data
communication by satellite and corporate networks. The company is
national leader in data and internet services, in a privileged
position to become the Latin American carrier with an all-
distance network. Embratel network has national coverage with
almost 17,500 miles of optic cables, representing around one
million miles of fiber optics.

CONTACT:  EMBRATEL
          Advertising, Press and Public Relations Department
          Further information: (02121) 2121 7837 / 2121 6291
          Fax: (02121) 2121 7791
          Mid-West- Phone: (02161) 242-9058 / 2845 / 916-9188
          Attention: Flavio Resende
          E-mail: cmsocial@embratel.net.br
          Embratel on the internet: www.embratel.com.br



===================================
D O M I N I C A N   R E P U B L I C
===================================

SAN PEDRO: Fitch Places Ratings on Rating Watch Negative
--------------------------------------------------------
Fitch Ratings has placed the 'BBB' senior secured rating of La
Compania de Electricidad de San Pedro de Macoris (San Pedro or
the project) on Rating Watch Negative. The rating remains
premised on the support provided by the Inter-American
Development Bank's (IDB) political-risk guarantee (PRG). The
rating and Rating Watch status applies to approximately $135.8
million of debt.

Once again, Corporacion Dominicana de Electricidad (CDE), is past
due and in default on its contractual payments to San Pedro
relating to the July and August 2003 invoices. The Dominican
government is also currently in default under its guarantee of
the PPA. The PPA was approved by the president and ratified by
the Congress and remains backed by the government guarantee. The
project or its lenders have the right to terminate the PPA and
call on the government guarantee. If the Dominican government is
unable or unwilling to pay the guaranteed amount, the lenders may
then file a claim with the IDB under the PRG. The principal and
interest owed to the secured lenders should not be affected due
to the IDB support, provided that appropriate and timely steps
are taken by the project and lenders in accordance with the
credit agreement documentation.

Fitch withdrew its Rating Watch Negative status in July 2003
reflecting the project's receipt of approximately $45 million in
past-due payments from the Dominican government, which brought
the government's account current. San Pedro subsequently
restarted its generating units. San Pedro's rating was previously
placed on Rating Watch Negative late last year following
nonpayment and arrearages by both CDE and the Dominican
government, which led the facility to shut down its units in
August 2002 and again in October 2002. Following the receipt of
the last payment of $21.8 million on July 15, 2003, San Pedro
restarted its units. Currently, all three units of the plant have
been shut down since CDE defaulted on its payment.

Fitch continues to be concerned about CDE's and the government's
ongoing ability and willingness to remain current on their
invoices, especially given public statements made by government
officials relating to this particular power contract. While the
government has reportedly committed to the World Bank, with which
it is negotiating a new debt facility, to maintain the integrity
of the power purchase agreement (PPA) with San Pedro and meet the
financial obligation thereunder, recent non-payment by CDE
appears to undermine this position. Further, underlying sector
fundamentals remain a problem. CDE says it is unable to collect
sufficient amounts from the electric distributors, which, in
turn, claim the reduced payments to CDE offset amounts owed to
them by government entities within the distributors' respective
service territories. The government had been hoping to improve
this situation with the World Bank loan later in 2003.

CONTACTS:  Jason Todd +1-312-368-3217
           Daniel Kastholm CFA, +1-312-368-2070, Chicago

MEDIA RELATIONS: Matt Burkhard +1-212-908-0540, New York


=============
J A M A I C A
=============

AIR JAMAICA: U.S. Dept. of Transportation Levies $50K Fine
----------------------------------------------------------
The US Department of Transportation slapped Air Jamaica with a
US$50,000-fine last month for failing to disclose fees separately
from the price of airfares, the RadioJamaica.Com reports, citing
the Atlanta Journal Constitution newspaper.

Air Jamica's Director of Communications, Sandrea Falconer,
confirmed to RJR News Thursday that the airline had been fined,
but did not confirm the reported amount.

Falconer argued the airline did not intend to deceive passengers,
as it had stated the full price of the ticket, including the
taxes and all fees.

The newspaper report quotes the DOT as saying it would cancel
half of the fine if Air Jamaica did not commit any further
violations over the next year. Air Jamaica declined to state if
this was done.

Meanwhile, RadioJamaica.Com reveals that the airline also failed
to disclose the cost of federal security fees, and it did not
disclose fees or taxes separately from the price of its fares on
its Web site.


JPSCO: Conflict with KSAC Worsens
---------------------------------
The Kingston and St. Andrew Corporation (KSAC) continues to put a
pressure on Jamaica Public Service Company (JPSCo), the Jamaica
Gleaner indicates.

After demanding that the JPSCo return the payments made for the
supply of electricity to streetlights, which have not functioned
for the last two-and-a-half years, the KSAC is now calling on the
Government to probe the JPSCo's repair and maintenance of the
streetlights in the Corporate Area.

The report reveals that KSAC Chairman and Kingston Mayor, Desmond
McKenzie, wants the ministries of Finance and Planning, Local
Government and Mining and Energy to intervene and investigate the
issue following recent surveys which show the number of non-
functioning street lights in the Corporate Area is greater than
first reported.

"We are convinced that the JPSCo needs to speak to this issue and
not only in terms of repairing the street lights. It needs to say
what it intends (to do) in terms of compensating the taxpayers,"
Mayor McKenzie said during last week's press briefing at 24
Church Street, downtown Kingston.

Last month, the KSAC estimated 2,500, or just over 10% of the
23,000 streetlights in Kingston and St. Andrew, were not working.
The estimate now puts the number at 3,000, Mayor McKenzie said.



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

VITRO: Fitch Downgrades Ratings to 'BB-'
----------------------------------------
Fitch Ratings has downgraded its senior unsecured foreign and
local currency ratings of Vitro, S.A. de C.V. (Vitro) to 'BB-'
from 'BB'. Fitch has also downgraded Vitro's national scale
ratings to 'A-'(mex) from 'A+'(mex). The ratings remain on Rating
Watch Negative.

The rating action reflects continued pressures on Vitro's
operating fundamentals and the deterioration of credit protection
measures to levels not commensurate with the prior rating
category as a consequence of a difficult economic and competitive
environment. The Rating Watch Negative on the ratings reflects
Fitch's belief that these challenges and the pressure on credit
ratios will continue over the next several months.

For the first half of 2003, revenues declined by 2.7% and the
EBITDA margin deteriorated, reflecting lower cost absorption and
higher energy costs. In flat glass, weak demand from the U.S.
non-residential construction sector and pricing pressures from
original equipment manufacturers (OEMs) have been off-set by
higher sales to the domestic construction market, to Mexico's
auto replacement market and at Vitro's Spanish operations. The
glass containers division, a strong performer in 2002, has also
suffered in 2003 due to the negative effect on sales of beer and
soft drinks of adverse weather in the U.S. The glassware division
remains affected by poor capacity utilization, driven by weak
demand from Mexico's industrial segment, lower exports to the
U.S. and increased competition from imports.

Lower revenue, profitability and cash flows continue to hinder
Vitro's debt repayment goals. For the 12-month period ended June
30, 2003, total debt-to-EBITDA reached 4.3 times (x) compared to
3.8x during 2002 and the ratio of EBITDA-to-Interest Expense
deteriorated to 2.6x from 3.2x in 2002. The company has targeted
proceeds from sale of non-strategic assets for debt reduction but
these have been limited in 2003. Vitro recently announced the
sale of one of its plastic containers businesses for
approximately US$18 million.

Total debt at June 30, 2003 remains high at US$1,486 billion. Out
of US$456 million of short-term debt, current maturities of long-
term debt totaled US$199 million. Approximately 53% of the debt
is at the holding company level and is structurally subordinate
to operating company debt, primarily composed of bank debt.
Liquidity has deteriorated, with cash and marketable securities
holdings declining to US$167 million at June 30, 2003 from US$214
million at Dec. 31, 2002.

Financial flexibility remains adequate, due to Vitro's access and
use of a wide range of funding sources across the domestic and
international bank markets as well as capital markets. Yesterday,
Vitro announced the pricing of a US$225 million 144A bond due
2013 at the holding company level, which is structurally
subordinated to operating company debt. Proceeds will extend the
maturity of the debt, relieve short-term debt commitments and
allow for pre-payment of a portion of Vitro's outstanding US$218
million Yankee bond due 2007.

Vitro is the leading producer of flat glass, glass containers and
glassware in Mexico, servicing the construction, automotive,
beverage, retail and service industries. Approximately half of
revenues derive from exports and sales from foreign subsidiaries
located in the United States, Spain, Portugal, Central America
and Bolivia. In 2002, the company had sales of US$2.3 billion,
EBITDA of US$403 million, exports of US$586 million and foreign
sales by subsidiaries of US$628 million. Vitro is headquartered
in Monterrey, Mexico.

CONTACT:  Fitch Ratings
          Giovanna Caccialanza, CFA
          New York
          Phone: 212-908-0898

          Alberto Moreno
          Monterrey, Mexico
          Phone: 528-18-335-7239

          Matt Burkhard (Media Relations)
          New York
          Phone: 212-908-0540




               ***********


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 America is a daily newsletter
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