/raid1/www/Hosts/bankrupt/TCRLA_Public/090512.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
Tuesday, May 12, 2009, Vol. 10, No. 92
Headlines
A N T I G U A & B A R B U D A
STANFORD INT'L BANK: Owner Again Seeks Release of Defense Funds
STANFORD INT'L BANK: Owner May Have Been DEA Informant
A R G E N T I N A
BANCO MACRO: Posts ARS156.0 Million Net Income in First Quarter
BAGNOT SA: Proofs of Claim Verification Deadline is June 25
FRIGORIFICO: Hearing for Preventive Contest Set for May 26
MARROC SA: Proofs of Claim Verification Deadline is August 3
PAPEL EXPRESS: Proofs of Claim Verification Deadline is June 26
PREMIL SA: Asks for Opening of Preventive Contest
TELECOM ARGENTINA: 1st Qtr Net Profit Up 21% to ARS329 Million
B E R M U D A
APOLLO INSURANCE: Court Enters Wind-Up Order
BRUNSWICK COMPANY: Releases Thresh and Morrison as Liquidators
B R A Z I L
BRACOL HOLDING: Moody's Downgrades Corporate Family Rating to 'B1'
GERDAU AMERISTEEL: To Hold Annual Shareholders Meeting Tomorrow
MACHADINHO ENERGETICA: Moody's Withdraws 'Ba2' Rating on Notes
SUL AMERICA: Fitch Affirms Issuer Default Ratings at 'BB'
C A Y M A N I S L A N D S
MARFRIG FRIGORIFICOS: Fitch Affirms 'B+' Issuer Default Rating
D O M I N I C A N R E P U B L I C
CAP CANA: Investors Want Sales, Executive Says
J A M A I C A
CARIBBEAN CEMENT: 80 Percent of Workforce on Strike
FLOW: Supreme Court Extends Order Barring Firm's Asset Sale
NWC: Workers' Industrial Action Puts Firm's Operations at Risk
M E X I C O
CEMEX SAB: Creditors May Recover 50% in Default, Barclays Says
FLEETWOOD ENTERPRISES: Krystal to Buy Mexicali Assets for $150,000
GRUPO POSADAS: S&P Puts 'BB-' Rating on Negative Creditwatch
P A N A M A
PRIMER BANCO: Fitch Withdraws 'C/D' Individual Rating
T R I N I D A D & T O B A G O
CL FINANCIAL: PwC Talks Delay Angostura's 2008 Report
CL FIN'L: HCL Execs Earned from One Woodbrook Project Discounts
V E N E Z U E L A
* VENEZUELA: Seizes Assets of 60 Oilfield Service Companies
X X X X X X X X
* Fitch Releases April List of Rating Actions for Latin America
* Large Companies With Insolvent Balance Sheets
- - - - -
===============================
A N T I G U A & B A R B U D A
===============================
STANFORD INT'L BANK: Owner Again Seeks Release of Defense Funds
---------------------------------------------------------------
Stanford International Bank Limited (SIBL) owner Robert Allen
Stanford has urged a Dallas judge to unlock at least US$10 million
of his frozen assets so he can hire a legal team to defend him
against accusations that he ran an investment scheme, Laurel
Brubaker Calkins of Bloomberg News reports.
Mr. Stanford earlier sought the same request with his civil
lawyer, Jack C. Nickens, arguing that the court-ordered freeze
of Mr. Stanford's assets left him “with no money to retain counsel
to defend himself from an avalanche of allegations in civil
actions not just across the country, but around the world, not to
mention a possible criminal indictment.”
The Securities and Exchange Commission (SEC), on Feb. 17, charged
Mr. Stanford and three of his companies for orchestrating a
fraudulent, multi-billion dollar investment scheme centering on an
US$8 billion Certificate of Deposit program. Mr. Stanford's
companies include SIBL, Stanford Group Company (SGC), and
investment adviser Stanford Capital Management.
As reported in the Troubled Company Reporter-Latin America on
April 8, 2009, Bloomberg News said U.S. District Judge David
Godbey seized all of Mr. Stanford’s corporate and personal assets
and placed them under the control of court-appointed SGC receiver
Ralph Janvey.
“This is not justice,” Mr. Stanford’s lawyers argued in court
papers filed May 8 in federal court in Dallas, Bloomberg News
notes. “Justice permits Mr. Stanford to effectively defend
himself.”
According to a TCR-LA report on May 6, citing Caribbean Net News,
the U.S. SEC filed with the U.S. District Court in Dallas to
oppose Mr. Stanford's efforts to have funds released to pay his
legal fees. "Stanford is not entitled to use his ill-gotten gains
to pay for his defense," the filing said, citing the executive's
lack of cooperation with a court-appointed receiver and his
failure to provide an accounting of investor funds, Caribbean Net
News relates.
About Stanford International
Domiciled in Antigua, Stanford International Bank Limited --
http://www.stanfordinternationalbank.com/-- is a member of
Stanford Private Wealth Management, a global financial services
network with US$51 billion in deposits and assets under management
or advisement. Stanford Private Wealth Management serves more
than 70,000 clients in 140 countries.
STANFORD INT'L BANK: Owner May Have Been DEA Informant
------------------------------------------------------
Stanford International Bank Limited (SIBL) owner Robert Allen
Stanford may have been an informant for the U.S. Drug Enforcement
Administration (DEA), feeding information to the DEA on money
laundering by Latin American drug cartels, Caribbean Net News
reports, citing BBC's Panorama investigation.
The report relates BBC's Panorama investigation said it is aware
of “strong evidence” that Mr. Stanford was a “confidential agent”
for the DEA as far back as 1999 and turned over details of money
laundering by clients from Colombia, Mexico and Ecuador.
According to Caribbean Net News, the Panorama report said Mr.
Stanford paid US$3.1 million to the DEA in 1999 after that sum was
invested in his bank by another Mexican drug gang, the Juarez
cartel of Amada Carillo Fuentes. Panorama's report, Caribbean Net
News notes, also said Mr. Stanford was initially investigated by
the SEC over suspicions he was running a Ponzi scheme in 2006, but
the inquiry was over by the winter of that year because of a
request by another government agency.
The Securities and Exchange Commission (SEC), on Feb. 17, charged
Mr. Stanford and three of his companies for orchestrating a
fraudulent, multi-billion dollar investment scheme centering on an
US$8 billion Certificate of Deposit program. Mr. Stanford's
companies include SIBL, Stanford Group Company (SGC), and
investment adviser Stanford Capital Management. As reported in
the Troubled Company Reporter-Latin America on April 8, 2009,
Bloomberg News said U.S. District Judge David Godbey seized all of
Mr. Stanford’s corporate and personal assets and placed them under
the control of court-appointed SGC receiver Ralph Janvey.
About Stanford International
Domiciled in Antigua, Stanford International Bank Limited --
http://www.stanfordinternationalbank.com/-- is a member of
Stanford Private Wealth Management, a global financial services
network with US$51 billion in deposits and assets under management
or advisement. Stanford Private Wealth Management serves more
than 70,000 clients in 140 countries.
=================
A R G E N T I N A
=================
BANCO MACRO: Posts ARS156.0 Million Net Income in First Quarter
---------------------------------------------------------------
Banco Macro S.A.'s net income increased 3% to ARS156.0 million in
the first quarter ended March 31, 2009, from the ARS151.6 million
posted for the first quarter of 2008. The annualized 1Q09 ROAE
and ROAA were 21.7% and 2.6%, respectively.
The Bank's net financial income was ARS496.7 million, increasing
40% year to year, while operating income rose 74% YoY to
ARS309.5 million.
Banco Macro's financing to the private sector grew 11% YoY, or
ARS1.2 billion. Loans to SMEs and export-financing led the
expansion with a 28% YoY growth, while personal loans, which
represent a strategic product for the Bank, grew 8% YoY.
The bank's total deposits grew 9%, or ARS1.5 billion quarter to
quarter, totaling ARS17.3 billion and representing 79% of the
Bank's liabilities.
Banco Macro continued showing a strong solvency ratio, with an
excess capital of ARS1.90 billion (24.6% capitalization ratio).
In addition, the Bank's liquid assets remained at a high level,
reaching 56.0% of its total deposits.
The bank's non-performing loans to total loans ratio was 3.06% and
the coverage ratio reached 121.16%.
About Banco Macro
Headquartered in Buenos Aires, Argentina, Banco Macro SA --
http://www.macro.com.ar/-- offers traditional commercial banking
products and services to small and medium-sized companies,
companies operating in regional economies, and to low and middle-
income individuals. It offers savings and checking accounts,
credit and debit cards, consumer finance loans, other credit-
related products and transactional services to its individual
customers, and small and medium-sized businesses through its
branch network. The bank also offers Plan Sueldo payroll
services, lending, corporate credit cards, mortgage finance,
transaction processing and foreign exchange. In March 2007, it
merged with Nuevo Banco Suquia S.A (Nuevo Banco Suquia).
* * *
The bank continues to carry Moody's Caa1 foreign long-term bank
deposits rating and Fitch's CCC+ subordinate debt rating.
BAGNOT SA: Proofs of Claim Verification Deadline is June 25
-----------------------------------------------------------
Osvaldo Fanton, the court-appointed trustee for Bagnot SA's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until June 25, 2009.
Mr. Fanton will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 10 in Buenos Aires, with the assistance of Clerk
No. 19, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Osvaldo Fanton
Pasaje del Carmen 791
Buenos Aires, Argentina
FRIGORIFICO: Hearing for Preventive Contest Set for May 26
----------------------------------------------------------
The High Court will hear the opening of preventive contest changes
and modifications for Frigorifico Regional General Las Heras S.A.
on May 26, 2009, at 10:30 a.m.
MARROC SA: Proofs of Claim Verification Deadline is August 3
------------------------------------------------------------
Bernardo Mazer, the court-appointed trustee for Marroc SA's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until August 3, 2009.
Mr. Mazer will present the validated claims in court as individual
reports. The National Commercial Court of First Instance No. 6 in
Buenos Aires, with the assistance of Clerk No. 11, will determine
if the verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will be
raised by the company and its creditors.
The Trustee can be reached at:
Bernardo Mazer
Avenida Corrientes 4434
Buenos Aires, Argentina
PAPEL EXPRESS: Proofs of Claim Verification Deadline is June 26
---------------------------------------------------------------
Miguel Angel Marchesi, the court-appointed trustee for Papel
Express SA's bankruptcy proceedings, will be verifying creditors'
proofs of claim until June 26, 2009.
Mr. Marchesi will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 18 in Buenos Aires, with the assistance of Clerk
No. 35, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Miguel Angel Marchesi
Avellaneda 1135
Buenos Aires, Argentina
PREMIL SA: Asks for Opening of Preventive Contest
-------------------------------------------------
Premil S.A. asked for the opening of its preventive contest.
The company stopped its payments last December.
TELECOM ARGENTINA: 1st Qtr Net Profit Up 21% to ARS329 Million
--------------------------------------------------------------
Telecom Argentina S.A.'s first quarter net profit increased 21% to
ARS29 million (US$86.8 million) from ARS272 million in the same
period a year ago as Internet and mobile phone sales increased,
Jorge Otaola of Reuters reports. The report relates Company
Operations Director Franco Bertone said sales could grow for the
rest of the year despite a slowing economy.
A Reuters poll of five analysts yielded a median forecast of
ARS277 million, with estimates ranging from ARS233 million to
ARS309 million.
"This was a good quarter with solid performance. We've increased
sales in every segment," Reuters quoted Mr. Bertone as saying.
"Business growth could be maintained this year. The prospects are
good."
Mr. Bertone, the report relates, said that in the second half of
the year the company would aim to pay off its debt, which totaled
ARS562 million as of March 31, from ARS1.69 billion a year ago.
According to Reuters, Telecom Argentina's first-quarter operating
profit increased 17% to ARS625 million, while consolidated net
revenue rose 14% to ARS2.83 billion.
The company, the report notes, said it had won 600,000 new
clients since December and 2.4 million since March 2008.
About Telecom Argentina
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- provides
telephone-related services, such as international long-distance
service and data transmission and Internet services, and through
its subsidiaries, wireless telecommunications services,
international wholesale services and telephone directory
publishing.
* * *
As reported in the Troubled Company reporter-Latin America on
Feb. 16, 2009, Standard & Poor's Ratings Services lowered Telecom
Argentina SA's foreign currency rating to B-/Stable/ and local
currency rating to B/Stable/. The outlook on both ratings is
stable.
=============
B E R M U D A
=============
APOLLO INSURANCE: Court Enters Wind-Up Order
--------------------------------------------
On May 1, 2009, the Supreme Court of Bermuda entered an order to
wind up the operations of Apollo Insurance Limited.
Charles Thresh and Mike Morrison are the company's liquidators.
BRUNSWICK COMPANY: Releases Thresh and Morrison as Liquidators
--------------------------------------------------------------
On May 1, 2009, the Supreme Court of Bermuda entered an order to
release the official liquidator of Brunswick Company Limited from
his post.
===========
B R A Z I L
===========
BRACOL HOLDING: Moody's Downgrades Corporate Family Rating to 'B1'
------------------------------------------------------------------
Moody's downgraded Bracol Holding Ltda.'s, 72% owner of unrated
Bertin S.A., local currency corporate family and guaranteed senior
unsecured ratings to B1 from Ba3. The rating outlook is negative.
This rating action concludes the review process of Bracol's
ratings initiated on March 3, 2009.
"The downgrade and the negative outlook reflect Bracol's higher
leverage (Total Adjusted Debt / EBITDA of 6.1x and Net Adjusted
Debt / EBITDA of 3.6x at the end of FY2008, according to Moody's
standard adjustments and definitions) compared to similarly rated
industry peers. Also important for the downgrade and negative
outlook was Moody's expectation that Bracol's free cash flow is
likely to remain negative due to investments to support its growth
strategy and dividend payments," stated Moody's VP Senior Analyst,
Soummo Mukherjee.
The negative outlook primarily reflects Moody's expectation that
Bracol's leverage is likely to remain above 5.0x on a Total Debt /
EBITDA basis, which is considered high for the B1 rating category.
A combination of possible continued margin pressure for its
leather and beef operations, particularly for exports, combined
with intensive working capital and capital expenditure needs as
the company continues to grow in 2009 will challenge the company's
ability to generate free cash flow for debt reduction.
Bracol's B1 ratings, however, continue to reflect its market
position as one of the leading processors and exporters of fresh,
processed beef and leather in Brazil, and its vertically-
integrated and diversified operations, which also include dairy
and hygiene and beauty operations. The B1 rating is also
supported by the presence of BNDES Participações S.A. (rated A1
local currency rating) as a shareholder with a participation of
26.9% of Bertin's voting capital.
Bracol owns 72% of Bertin and fully and unconditionally guarantees
the B1 unsecured notes due in 2016, which have Bertin as a co-
issuer. Bertin is the main business of Bracol and in 2008 was
responsible for: 93.3% of Bracol's net revenues, 77.8% of its
adjusted EBITDA, 99% of its total adjusted debt and 90.1% of its
cash and cash equivalents.
Ratings downgraded with a negative outlook:
-- Bracol Holding Ltda.'s Corporate Family Rating: to B1 from
Ba3
-- US$ 350 million 10.25% senior unsecured guaranteed notes due
2016: to B1 from Ba3
On December 31st, 2008, Bracol had a cash and cash equivalent
position of BRL 2.6 billion compared with a short-term debt of BRL
2.3 billion, which represented 36% of Bracol's BRL 6.5 billion in
total adjusted debt (including the interest-bearing refinanced
taxes; the remaining amount due for the acquisitions of Vigor and
of Pimenta Bueno plant; vendor transactions; advances on export
contracts and financial leases). Although approximately BRL 1.2
billion of Bracol's short-term debt is related to trade-finance
lines, which are normally revolving in nature, Moody's note that
the company's programmed capital expenditures for this year along
with expected working capital needs and interest payments will
require external funding sources to address its liquidity needs
for the next twelve months if full amortization of all short term
debt is assumed.
In terms of corporate governance, Moody's recognize that Bracol
has regularly published its results in quarterly press-releases,
audited financial statements and cash flow statements since 2008.
However, being a privately-held company, Bracol does not provide
the same level of financial disclosure or required to report
annual and quarterly results in the same time-frame as other
publicly traded companies in Brazil. Bertin's Board is composed
of six members from the family and one independent member.
Moody's note, however, that Bertin has implemented a fiscal
council that meet on a quarterly basis. Additionally, Bertin also
has implemented three executive committees, which include: 1)
finance and taxes; 2) internal auditing; and, 3) human resources.
Bracol's rating would likely be downgraded if its liquidity
profile deteriorates or if the company is unable to continue to
maintain funds from operations to adjusted net debt of above 20%
(34.5% as of year end 2008). Downward pressure on Bracol's B1
ratings would also be likely if Total Debt / EBITDA remains above
6.0x (6.1x as of year end 2008) or EBITA / Gross Interest Expense
is below 1.5 x (0.8x in 3Q08 and 2.9x in 4Q08) for two consecutive
quarters. All credit metrics are according to Moody's standard
adjustments and definitions.
A stabilization of Bracol's outlook would require Total Debt /
EBITDA to be below 5.0x (6.1x as of year end 2008), CFO / Net Debt
above 10% (6.9% as of year end 2008) and EBITA / Gross Interest
Expense maintained above 2.0x (0.8x in 3Q08 and 2.9x in 4Q08) on a
sustainable basis. All credit metrics are according to Moody's
standard adjustments and definitions.
Moody's last rating action on Bracol was on March 3, 2009, when
Moody's placed the company's Ba3 ratings under review for possible
downgrade, given the accelerated deterioration of the business
environment for Brazilian beef processors.
Bracol Holding Ltda., headquartered in Lins, SP, Brazil, is an
operational holding company that controls Bertin and also owns
cattle feeding operations, biodiesel plants, industrial hygiene
and cleaning products, production of animal feed, general labor
services to third parties and lease of machinery and equipment.
Bertin S.A., headquartered in São Paulo, SP, Brazil, is one of the
largest beef processing and leather exporting companies in Latin
America. In addition, the company also produces a diverse range
of dairy and vegetable oil products, hygiene, beauty and pet
products.
GERDAU AMERISTEEL: To Hold Annual Shareholders Meeting Tomorrow
---------------------------------------------------------------
Gerdau Ameristeel Corporation, a unit of Brazil-based Gerdau S.A.,
will hold its Annual Meeting of Shareholders tomorrow, Wednesday,
May 13, at 9:30 a.m. ET at The St. Andrew's Club and Conference
Centre, 150 King Street West, 27th Floor, in Toronto, Ontario.
The presentation will be webcast live. To access the webcast go
to: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=2635
160 or www.gerdauameristeel.com
Headquartered in Tampa, Florida, Gerdau Ameristeel Corporation
(NYSE: GNA; TSX: GNA.TO) -- http://www.ameristeel.com/-- is a
mini-mill steel producer in North America. Through its
vertically integrated network of 17 mini-mills, 17 scrap
recycling facilities and 52 downstream operations, Gerdau
Ameristeel serves customers throughout North America. The
company's products are sold to steel service centers, steel
fabricators, or directly to original equipment manufactures for
use in a variety of industries, including construction, cellular
and electrical transmission, automotive, mining and equipment
manufacturing.
* * *
As reported in the Troubled Company Reporter on April 20, 2009,
Standard & Poor's Ratings Services placed its ratings, including
its 'BB+' corporate credit rating, on Tampa, Florida-based Gerdau
Ameristeel Corp. on CreditWatch with negative implications.
MACHADINHO ENERGETICA: Moody's Withdraws 'Ba2' Rating on Notes
--------------------------------------------------------------
Moody's Investors Service has withdrawn the Ba2 and Aa3.br ratings
of BRL320 million guaranteed subordinated debentures due 2012
issued by Machadinho Energetica S.A. The ratings are withdrawn
upon the company's request because the debentures are now
privately held by BNDES, which qualifies under Moody's Guidelines
for the Withdrawal of Ratings in situations associated with
"Business Reasons".
The last rating action for MAESA was on September 17, 2003, when
the ratings were downgraded to Aa3.br from Aa1.br and Ba2 from
Ba1, reflecting the limited disclosure of information to monitor
the creditworthiness of the industrial company lessees and
guarantors on a timely basis and the rating agency's concerns
regarding the weakened credit profile of the non-industrial
lessees.
The Machadinho Hydroelectric plant is located on the Pelotas
River, on the border between the states of Santa Catarina and Rio
Grande do Sul. MAESA is a special-purpose company located in
Florianopolis, State of Santa Catarina, Brazil.
SUL AMERICA: Fitch Affirms Issuer Default Ratings at 'BB'
---------------------------------------------------------
Fitch Ratings has assigned Sul America S.A. National Long- and
Short-term Ratings of 'AA-(bra)' and 'F1+(bra)', respectively.
The Outlook for the National Long-term Rating is Stable. SASA is
the holding company of the Brazilian insurance group Sul America
Seguros.
At the same time, the agency has affirmed SASA's International
Long-term foreign and local currency Issuer Default Ratings at
'BB' with Stable Outlook and Short-term foreign and local IDRs at
'B'. Its US$200m senior notes have been affirmed at Long-term
foreign currency 'BB-'.
The IDRs and National Ratings reflect the strengthening of SASA's
franchise, mainly due to substantial improvements in the
underwriting, pricing and control policies adopted since 2004.
SASA's US$200m eurobond in February 2007 and the IPO in Q407,
which injected BRL775m, allowed the group to enhance its debt
maturity profile, reduce overall debt and financial costs,
enabling a more consistent operational performance across economic
cycles. Nevertheless, Fitch estimates that its earnings will be
pressured by smaller financial gains and a more adverse operating
environment, due to the global financial crisis. SASA's ratings
also reflect the high concentration of premium generation in the
health and auto segments and in some distribution channels, as
well as a higher operational leveraging than main competitors.
The proceeds of the IPO also enabled SASA's operating companies to
adjust to new capital requirements implemented since 2008.
Furthermore, SAS reduced its leverage, as its total debt/equity
ratio fell to a low 10.6% a FYE08 from 76.2% at FYE05. Net free
assets more than covered financial debt at FYE08, which Fitch
expects to continue, at least in the short term, due to the
company's good liquidity. Operational leverage, measured by the
net premiums/equity ratio, also declined to 2.8x in 2008 from 6x
in 2005, more compatible with domestic peers average of 1.8x.
Like its peers, SAS' business portfolio is highly concentrated in
the auto and health sectors. The latter is influenced by
regulatory price restrictions. To mitigate the adverse effects of
the global financial crisis, which will affect the growth of
insurance premiums, SAS has readjusted its pricing and continues
to aim to improve its pricing and loss control models. It also
aims to increase its presence in more profitable niches.
SAS is a traditional insurance group in Brazil, operating in
practically all segments of the industry. According to the
Superintendence of Private Insurance (Susep) and the National
Health Agency, it was the second-largest insurance group in Brazil
in the health and auto segments, with markets shares,
respectively, of 35% and 15% in December 2008 and the largest
independent insurance group (not controlled by a bank). It relies
on some 26,000 active brokers and has been gradually expanding its
distribution partnerships, with the Banco do Brasil (BB) joint
venture being the major one.
SASA is 32.9% held by Sulasapar Participacoes and 21.2% by ING
Insurance International BV The balance of SASA's capital consists
of shares held by executives, board members and other individual
shareholders (8.8%) and a 37.2% market free float.
==========================
C A Y M A N I S L A N D S
==========================
MARFRIG FRIGORIFICOS: Fitch Affirms 'B+' Issuer Default Rating
--------------------------------------------------------------
Fitch Ratings has affirmed these ratings of Marfrig Frigorificos e
Comercio de Alimentos S.A. and Marfrig Overseas Ltd, a special-
purpose vehicle wholly-owned by Marfrig and incorporated in the
Cayman Islands:
Marfrig Frigorificos e Comercio de Alimentos S.A.
-- Local currency Issuer Default Rating at 'B+';
-- Foreign currency IDR at 'B+';
-- National scale rating at 'BBB+(bra)'.
Marfrig Overseas Ltd
-- US$375 million senior unsecured notes due 2016 at 'B+/RR4'.
The Outlook for all these ratings is Stable.
The ratings of Marfrig are supported by the company's business
position as one of Brazil's largest producers and exporters of
both beef and poultry as well as its diversified production base
and increasing focus on non-commodity products. The company's
activities are evenly distributed between the domestic market and
export sales with a more diversified business profile than most of
its peers. Marfrig has above average geographical
diversification, both domestically with plants in six Brazilian
states, and internationally, with plants in Uruguay, Argentina,
Chile, and four countries in Europe. Also, the company has
increased its exposure to higher margin industrialized products
and entered new animal protein markets through recent
acquisitions. In 2007, the company entered the swine and lamb
segments, while in 2008 it entered the poultry market with
transformational acquisitions including OSI Group's assets in
Brazil and Europe. In 2009, these proteins are expected to
represent 4%, 1% and 45% of total sales, respectively, while beef
and beef by-products represent the remaining 50% of sales.
The ratings also reflect Marfrig's aggressive growth strategy
based on acquisitions, which have totaled 35 in the last three
years. The more than BRL3.2 billion of investments over this
period tripled revenues in 2008 with respect to 2006. This growth
has been financed by increased debt and BRL2.42 billion in shares
issuance including the company's IPO in 2007 which raised BRL1.02
billion.
Marfrig's growth strategy has led to increasing working capital
requirements and resulted in negative free cash flow generation
over the past few years. Fitch anticipates free cash flow
generation to improve as the company integrates acquisitions and
improves working capital management. The latest acquisition of
OSI Group's businesses in Brazil and in several European countries
for US$680 million was completed in the fourth quarter of 2008 and
fully financed through equity issuance. Fitch does not expect any
major acquisitions that would increase leverage in the near-term
due to the company's need to concentrate its efforts on
consolidating prior transactions and limited financial
flexibility.
Marfrig's capital structure is highly leveraged with BRL4.53
billion total debt on its balance sheet at the end of 2008.
Proforma total-debt-to-EBITDA was 4.0 times (x) and net-debt-to-
EBITDA was 3.1x, consistent with the speculative grade rating
category. Short term debt amounted to BRL1.31 billion, which is
mostly related to trade line of credit and is supported by its
significant level of exports and in line with the industry; the
company has BRL1.07 million of cash on hand. Debt maturities are
staggered and consist of BRL500 million, BRL860 million and BRL470
million in 2010, 2011 and 2012, respectively. Fitch expects
improved credit metrics in the near future as the company realizes
synergies from acquisition and gains market share in the Brazilian
market. Also management remains committed to reducing leverage
while it fully consolidates the OSI Group's results which are
expected to add nearly BRL200 million of annual EBITDA. If the
acquired companies achieve certain performance metrics, Marfrig
will have to pay an additional US$220 million (in stock or cash)
for this transaction in 2011.
The ratings are also constrained by Marfrig's exposure to the
volatility of commodity prices mitigated by the low cost
production of proteins in Brazil. Prices and margins in the
animal protein markets are vulnerable to domestic and
international supply and demand imbalances due to factors such as
disease and weather conditions, global economic growth, changes in
consumption habits, government-imposed sanitary and trade
restrictions, and competitive pressures from other Brazilian or
international producers and exporters. However, these risks are
partially offset by Brazil's vast competitive advantages in cattle
grazing and beef production, including cattle-raising costs that
are the lowest worldwide due to favorable geographic and weather
conditions, the availability and low cost of grazing land, and low
cattle-feeding costs. Other inputs, such as energy and labor, are
also abundant and attractively priced. As the largest exporter of
poultry in the world, Brazil also enjoys similar competitive
advantages in the production of this protein.
The Stable Outlook derives from Fitch's expectation that Marfrig's
liquidity will remain healthy over 2009 as the company generates
positive free cash flow, pays only about BRL225 million related to
prior acquisitions and is able to refinance most of its short-term
debt. Marfrig already secured US$105 billion in long-term loans
from Bradesco and Rabobank. Also, Fitch anticipates that the
company will refinance some of its 2009 maturities with a new
program sponsored by the government to provide BRL10 billion in
loans to food companies. The interest rate on these two-year
loans granted primarily through BNDES, Brazil's development bank,
is 11.25% and has a one-year grace period. Margins are expected
to decrease in 2009 which could place pressure on the credit
metrics of the company but they should improve beyond this year as
global economic conditions improve, the cattle cycle in Brazil
turns and the company sources raw materials for its value added
production overseas from Brazil.
Marfrig is the third largest beef and poultry producer in Brazil
with slaughtering capacity of 21,100 and 1.726 million heads per
day, respectively. It has operations in eight countries and
revenues were US$3.38 billion in 2008.
===================================
D O M I N I C A N R E P U B L I C
===================================
CAP CANA: Investors Want Sales, Executive Says
----------------------------------------------
LatinFrance reports that Dominican luxury resort Cap Cana S.A.
hopes to set sail for calmer waters after concluding its exchange
offer deal.
As reported in the Troubled Company Reporter-Latin America on
May 5, 2009, LatinFrance said Cap Cana concluded the offer to
exchange US$$250 million in 9.625% of 2013 bonds issued in 2006
for two new classes of notes. The report said the offer, which
had a 95.46% participation rate, was completed just in time to
avoid a May 3 coupon payment, which would have dragged the resort
into default. According to LatinFrance, investors received
US$129.3 million in 10% senior secured 2016 notes, and US$125.9
million in 10% 2016 recovery notes with PIK features in exchange
for the old notes. The report said coupon payments start in
October on senior notes, and the others only pay cash if there are
sufficient funds. LatinFrance said New York-based Weston
International was hired by Cap Cana as an advisor, and mediated
the process.
“We were pleased with the way the company listened and showed
flexibility with what creditors wanted to see in the deal,” Latin
France quoted one executive who advised a group of holders, as
saying. However, the report relates the executive said investors
insist the company now has to deliver on operations and sales.
According to LatinFrance, one bondholder who participated in the
swap, said: “The family has to be able to fund the deficit.
There’s still a lot to go in terms of selling properties and
finishing construction.”
About Cap Cana
Cap Cana S.A. is owner and developer of a resort complex (Cap
Cana) on the Dominican easter tip. The resort copmplex is being
developed as a multiuse luxury resort in the Caribbean with world-
class beaches, championship golf courses, yachting facilities and
other leisure amenities. The property consists of over 46 square
miles (119.9 square kilometers) of land, including a five-mile
(eight kilometer) coastline and 2.2 miles (3.5 kilometers) of one
of the most pristine beaches in the region. As of September 30,
2008, Cap Cana S.A. had invested approximately US$485 million in
infrastructure and other improvements.
* * *
As reported by the Troubled Company Reporter - Latin America on
Nov. 4, 2008, Fitch Ratings downgraded the rating on Cap Cana,
S.A.'s US$250 million senior secured notes from 'B' to 'CCC/RR4'.
The rating was also placed on Rating Watch Negative.
=============
J A M A I C A
=============
CARIBBEAN CEMENT: 80 Percent of Workforce on Strike
---------------------------------------------------
Caribbean Cement Company Limited's 200 production workers, around
80% of the total workforce, walked off from their jobs at the
Rockfort in St. Andrew protesting against the failure of the
company to grant them a pay increase, Radio Jamaica News reports.
The report relates the workers were also upset about new policies
which have reportedly been implemented by Caribbean Cement's
management.
According to the report, the employees, who are represented by the
National Workers Union (NWU), are up in arms over the
implementation of a new shift system.
The NWU, Radio Jamaica News notes, said the system has negatively
affected the workers' take home pay.
Radio Jamaica News says the workers were also said to be upset
about other changes implemented by the company which they claim
are contrary to a collective bargaining agreement.
Headquartered in Rockfort, Kingston, Jamaica, Caribbean Cement
Company Limited -- http://www.caribcement.com-- has been
producing a consistently high quality of portland cement using one
hundred percent Jamaican raw materials since 1952. Carib Cement
has as a subsidiary company Jamaica Gypsum and Quarries Limited
(JGQ), which supplies the company with the gypsum used in the
manufacture of its cement. The company exports its surplus gypsum
and boasts its own ports for the shipment abroad of both its
cement and gypsum.
The company is a major contributor to the Jamaican economy and
employs some 250 persons.
FLOW: Supreme Court Extends Order Barring Firm's Asset Sale
-----------------------------------------------------------
Local cable company Jamaica Amalgamated Cable Systems (JACS) and
two associated firms on May 7 obtained a 14 day extension from the
the Supreme Court that bars FLOW from divesting any of its assets,
Radio Jamaica News reports.
The report recalls JACS sought the injunction last month after it
became embroiled in a dispute with FLOW which acquired its
operations in 2007.
According to the report, JACS said it has not been fully paid for
the assets which FLOW purchased. The report relates the company
is also trying to protect its interest in the wake of reports that
FLOW is being eyed by an international investor who is interested
in acquiring its operations.
About JACS
JACS provides cable services to thousands of customers in Portmore
and Spanish Town in St. Catherine.
About Flow
Flow -- http://www.flowjamaica.com-- is a member of the Columbus
Communications group of companies, a CARICOM-based
telecommunications provider with a proven track record in
developing and operating advanced broadband networks.
NWC: Workers' Industrial Action Puts Firm's Operations at Risk
--------------------------------------------------------------
Some of the National Water Commission (NWC)'s operations are
facing uncertainty following the workers' decision to take
industrial action, Radio Jamaica News reports. The report relates
that during a meeting called by the National Workers Union, the
employees voted to protest against a plan to freeze their wages.
However, Radio Jamaica notes it is still not clear what action the
workers intend to take.
According to the report, the NWC management said it is awaiting
further instructions from the Government regarding adjustments to
salaries, and Corporate Public Relations Manager Charles Buchanan
called on the workers to hold strain until a final determination
is made.
The National Water Commission -- http://www.nwcjamaica.com-- is
a statutory organisation charged with the responsibility of
providing potable water and wastewater services for the people of
Jamaica. Although there are other water service providers such as
Parish Councils and private water companies, none provides as much
as the National Water Commission.
===========
M E X I C O
===========
CEMEX SAB: Creditors May Recover 50% in Default, Barclays Says
--------------------------------------------------------------
Cemex S.A.B de C.V creditors would likely recover as much as 50
cents on the dollar if the company were to default on its debts,
Lester Pimentel at Bloomberg News reports, citing a Barclays Plc
analyst.
“We estimate that recovery for senior unsecured debt would be 40-
50% at Cemex SAB,” Barclays analyst Christopher Buck wrote in a
report obtained by Bloomberg News.
Bloomberg News relates Mr. Buck expects the company to avoid
default by working out a refinancing agreement with creditor
banks.
As reported in the Troubled Company Reporter-Latin America on
May 6, 2009, Bloomberg News said Cemex may reach a refinancing
deal with its creditors soon. Bloomberg News said Excelsior
newspaper reported May 5 that the company is in negotiations with
Banco Santander SA and Banco Bilbao Vizcaya Argentaria SA’s
Bancomer unit on loans to help it cover debt obligations due this
year. According to a March 11 TCR-LA report, citing Bloomberg
News, Cemex started discussions with banks to renegotiate about
US$14.5 billion of debt after postponing its bond sale. Company
spokesman Jorge Perez, as cited by Bloomberg News, said the
US$14.5 billion is all of Cemex’s bank debt and doesn’t include
any bonds. At the end of December, Cemex had total debt of
US$18.8 billion, the report noted. According to Reuters, Cemex
has been slammed by debt problems after its ambitious Rinker
takeover in 2007, slumping sales, and losses on derivatives amid
turmoil caused by the global credit crisis.
About Cemex S.A.B
Cemex S.A.B de C.V is the third-largest cement producer in the
world based on production capacity of approximately 97 million
metric tons and operates in more than 50 countries. The company
is also the global leader in the ready mix concrete market with
sales of over 80.5 million cubic meters, and an important global
player in the aggregates business with sales of 222.7 million
tons. In 2008, Cemex generated US$4.370 billion of EBITDA on
US$21.8 billion of sales revenues.
* * *
As reported by the Troubled Company Reporter-Latin America on
March 2, 2009, Standard & Poor's Ratings Services said that its
'BB+' long-term corporate credit ratings on Cemex S.A.B de C.V.
and its key operating subsidiaries (Cemex Espana S.A., Cemex
Mexico S.A. de C.V., and Cemex Inc.) remain on CreditWatch, where
they were placed with negative implications on Jan. 21, 2009. At
the same time, S&P assigned a 'BB+' rating to Cemex's
intermediate-maturity notes in the amount of about US$500 million.
The recovery rating is '3', indicating that lenders can expect
substantial (70% to 90%) recovery in the event of a payment
default.
FLEETWOOD ENTERPRISES: Krystal to Buy Mexicali Assets for $150,000
------------------------------------------------------------------
Fleetwood Enterprises, Inc., and its affiliates ask the U.S.
Bankruptcy Court for the Central District of California for
authority to sell the stock of non-Debtor Fleetwood De Mexico S.A.
de C.V. and other assets related to Fleetwood's non-operating
travel trailer manufacturing facility in Mexico to Krystal
Enterprises LLC and Edward P. Grech, free and clear of all
liens, claims, interests and encumbrances.
Krystal is a California corporation that manufactures stretch
limousines, professional vehicles, and luxury mid-size buses. The
Debtors tell the Court that in order to commence production for
its summer 2009 sales season, Krystal needs to close on the
proposed purchase of the Mexicali Assets by mid-May 2009.
The Buyers have offered to pay US$150,000 in cash for the Mexicali
Assets. Fleetwood Enterprises is a guarantor of Fleetwood
Mexico's obligations under the Mexicali Lease. Krystal has agreed
to step in as the guarantor of the Mexicali lease or indemnify FEI
against potential liability as guarantor of the Mexicali lease.
Debtor Fleetwood International Inc owns 49,999 out of the 50,000
outstanding shares of Fleetwood Mexico. Debtor Fleetwood Travel
Trailers of California, Inc., owns the remining one share in
Fleetwood Mexico. Fleetwood Mexico in not a Chapter 11 debtor.
As reported in the Troubled Company Reporter on April 30, 2009,
Fleetwood Enterprises Inc. signed a deal for the sale of a plant
in La Grande, Oregon for US$1.8 million to Arbutus RV & Marine
Sales Ltd., the largest recreational-vehicle dealer in British
Columbia, citing Bloomberg's Bill Rochelle.
The Debtor will further market test the plant through an auction.
Mr. Rochelle reported that Arbutus insised on completing the
purchase by May 15 to produce travel trailers for the summer
season.
Fleetwood has an $80 million in Debtor-in-Possession from lenders,
led by Bank of America, N.A. as agent.
Headquartered Riverside, California, Fleetwood Enterprises --
http://www.fleetwood.com/-- produces recreational vehicles and
manufactured homes. The Company has about 9,000 associates
working in facilities strategically located throughout the nation.
The Company and 19 of its affiliates filed for Chapter 11
protection on March 10, 2009 (Bankr. C.D. Calif. Lead Case No.
09-14254). Craig Millet, Esq., at Gibson, Dunn & Crutcher LLP,
represents the Debtors in their restructuring efforts. The
Debtors proposed Ernst & Young LLP as auditor, FTI Consulting Inc.
as consultant, and Greenhill & Co. LLC as financial advisor.
GRUPO POSADAS: S&P Puts 'BB-' Rating on Negative Creditwatch
------------------------------------------------------------
Standard & Poor's Ratings Services placed its 'BB-' long term
corporate credit rating and its senior unsecured debt ratings, as
well as its long-term national scale rating of 'mxBBB+' on hotel
operator Grupo Posadas S.A.B. de C.V. on CreditWatch with negative
implications.
"The CreditWatch placement reflects our expectation that Posadas
will post weaker-than-anticipated occupancy levels following the
trends seen in first-quarter 2009 and aggravated by the A-H1N1
outbreak in Mexico, which could translate into weaker
profitability levels and deterioration in its key credit metrics.
S&P also expect a deeper decline in foreign tourism, which would
affect Posadas' dollar-denominated revenue generation, increasing
the mismatch between the company's cash flow generation and its
dollar-denominated debt -- 94% of total debt as of first-quarter
2009," said Standard & Poor's credit analyst Monica Ponce.
Posadas' CCR reflects its aggressive financial policy, the
cyclical nature of the lodging industry, the company's geographic
concentration in Mexico, and its relatively high debt leverage.
These factors are partially offset by the company's consistent
operating performance, its position as the largest hotel operator
in Mexico, and its diversified hotel portfolio, including well-
recognized brands.
For the 12 months ended March 31, 2009, Posadas' occupancy levels
declined, reaching occupancy levels of around 58%, which compares
negatively with the company's historical 62% occupancy rate. S&P
expects even-lower occupancy levels for second-quarter 2009 due to
the A-H1N1 outbreak and further weakening of the Mexican economy.
As a result of the current economic conditions, for the 12 months
ended March 31, 2009, the company reported an EBITDA plus rent
margin adjusted for operating leases of 25.8%, which compares
negatively to the 28.4% reported for the same period one year
earlier. For the 12 months ended March 31, 2009, its debt-to-
EBITDAR ratio, adjusted for operating leases, deteriorated to 4.1x
compared with 3.5x one year earlier. EBITDAR adjusted for
operating leases interest coverage remains stable at 3.0x. S&P
expects these ratios to erode further throughout 2009 as
consequence of lower profitability levels.
"The CreditWatch will be resolved once S&P has more information
about the impact that the A-H1N1 outbreak will have on the
company's operations and financial results," Ms. Ponce added.
===========
P A N A M A
===========
PRIMER BANCO: Fitch Withdraws 'C/D' Individual Rating
-----------------------------------------------------
Fitch Ratings has withdrawn Primer Banco del Istmo's ratings
following its merger with HSBC Bank Panama (which was completed on
April 30, 2009):
-- Foreign Currency Long-term Issuer Default Rating 'BBB+';
-- Foreign Currency Short-term IDR 'F2';
-- Individual rating 'C/D';
-- Support rating '2';
The Rating Outlook was Positive prior to the withdrawal.
The ratings for these securities, originally issued by Banistmo,
are now related to HSBC Bank Panama and are affirmed without
changes:
-- $50 million senior bonds, series A (bonos corporativos serie
A por US$50 millones, ISIN: PAL302182HA6), National Long-term
Rating at 'AAA(Pan)'.
===============================
T R I N I D A D & T O B A G O
===============================
CL FINANCIAL: PwC Talks Delay Angostura's 2008 Report
-----------------------------------------------------
The shareholders of Angostura Limited, a unit of CL Financial
Limited, were told that the company was unable to publish its
year-ending 2008 accounts because of on-going discussions with
Angostura’s auditors PricewaterhouseCoopers (PwC) concerning the
treatment of a major inter-company receivable from CL Financial
and other related issues, Trinidad and Tobago Newsday reports,
citing an advertisement signed by chairman Lawrence Duprey.
Mr. Duprey, the report relates, said PwC needed more time to
complete the audit of Angostura’s financial statements for 2008,
noting that the company anticipates that the audited financial
statements for the company will be published on or before May 31,
2009.
T&T Newday recalls last year, Angostura purchased 86.87% in
Jamaican rum company and spent US$676 million on the total
investment cost, including professional fees and other expenses
and financed it by external debt financing in the amount of US$450
million at rates varying between 9.5% and 10.5% per annum. The
report relates sources said that the deal is having an impact on
Angostura’s accounts because CL Financial owes the company money.
However, according to the report, Mr. Duprey gave an assurance
that the CL Financial will continue to invest in Angostura's
business.
Meanwhile, T&T Newsday, citing the advertisement, notes that
Carolyn James and Anthony Watkins have been appointed to Angostura
board by Colonial Life Insurance Company (Clico), and Ousik Yu has
been appointed as a non-executive director on the Angostura board.
All three are to hold office until the next AGM at which they will
be eligible for re-election by shareholders, the report relates.
About Angostura
The House of Angostura (aka Angostura Limited) --
www.angostura.com -- is a Trinidad and Tobago company famous for
the production of angostura bitters, invented by the company's
founder. The company is also a distiller and is the major
producer of rum in Trinidad and Tobago. The company also has been
used as a vehicle for international expansion by its parent
company, CL Financial Limited. As a result of these acquisitions,
the company owns distillers in the United States, Canada, The
Bahamas and Suriname.
The company was founded around 1830 in Ciudad Bolivar by a German
doctor, Johann Gottlieb Benjamin Siegert, Surgeon-General in Simon
Bolivar's army in Venezuela. Around 1820 he tried to find a
medicine to improve appetite and digestive well-being of the
soldiers.
About CL Financial
According to Wikipedia, CL Financial Limited is the largest
privately held conglomerate in Trinidad and Tobago and one of the
largest privately held corporations in the entire Caribbean.
Founded as an insurance company, Colonial Life Insurance Company
(CLICO) by Cyril Duprey, it was expanded into a diversified
company by his nephew, Lawrence Duprey. CL Financial is now one
of the largest local conglomerates in the region, encompassing
over 65 companies in 32 countries worldwide with total assets
standing at roughly US$100 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2009, the Trinidad and Tobago Express said Central Bank
Governor Ewart Williams disclosed that an examination of insurance
company CLICO, dissolved finance house CLICO Investment Bank and
other CL Financial companies, showed a deficit between $6 billion
and $8 billion.
Tobago President George Maxwell Richards, The Express related,
signed bailout bills for CL Financial, giving the government the
authority to control the company's unit, Colonial Life Insurance
Company, and giving the central bank extensive powers to treat
with CL Financial's collapse and the consequent systemic crisis.
According to the Trinidad and Tobago Newsday, the government used
$1 billion of taxpayers money to help protect depositors and
policyholders.
T&T Newsday related Governor Williams pleaded with policy holders
not to withdraw money from Clico, amid the unit's increasing
$10 billion debt.
CL FIN'L: HCL Execs Earned from One Woodbrook Project Discounts
---------------------------------------------------------------
Home Construction Ltd, a unit of CL Financial Limited, is two
years behind schedule and $400 million over budget on its 419-unit
luxury project, One Woodbrook Place (OWP), Trinidad and Tobago
Newsday reports, citing sources. However, documents seen by the
news agency indicated that Chief Executive Officer Hayden
Ameerali; Corporate Attorney Geoffrey Leid; and Chief Operating
Officer Richard le Blanc, all benefited from discounts in the unit
value of condominiums secured at OWP.
According to the report, private correspondence, sent to CL
Financial Executive Chairman Lawrence Duprey, by independent
quantity surveyor Peter Morris raised concerns that the reduction
in unit prices of the luxury condos "will impact the viability" of
the OWP project.
The report relates Mr. Ameerali in a telephone interview with the
Sunday Express, insisted that the discounted prices were
"executive approved". The benefits he and other top brass at HCL
received were not "inconsistent with what other executives in
other business organisations received", he said. Mr. Ameerali,
T&T Newsday relates, said the discounts were standard financial
rewards for top management and part of their contracts.
T&T Newsday notes Mr. Ameerali referred all questions on the
matter to former HCL Managing Director Anthony Fifi, who denied
Mr. Ameerali's statement that he approved the discounts for HCL
executives. The report relates Mr. Fifi said Mr. Duprey might
have made the concessions. Mr. Fifi, the report says, made it
clear that it was CL Financial's corporate policy to provide its
top executives with generous benefits.
About CL Financial
According to Wikipedia, CL Financial Limited is the largest
privately held conglomerate in Trinidad and Tobago and one of the
largest privately held corporations in the entire Caribbean.
Founded as an insurance company, Colonial Life Insurance Company
(CLICO) by Cyril Duprey, it was expanded into a diversified
company by his nephew, Lawrence Duprey. CL Financial is now one
of the largest local conglomerates in the region, encompassing
over 65 companies in 32 countries worldwide with total assets
standing at roughly US$100 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 20, 2009, the Trinidad and Tobago Express said Central Bank
Governor Ewart Williams disclosed that an examination of insurance
company CLICO, dissolved finance house CLICO Investment Bank and
other CL Financial companies, showed a deficit between $6 billion
and $8 billion.
Tobago President George Maxwell Richards, The Express related,
signed bailout bills for CL Financial, giving the government the
authority to control the company's unit, Colonial Life Insurance
Company, and giving the central bank extensive powers to treat
with CL Financial's collapse and the consequent systemic crisis.
According to the Trinidad and Tobago Newsday, the government used
$1 billion of taxpayers money to help protect depositors and
policyholders.
T&T Newsday related Governor Williams pleaded with policy holders
not to withdraw money from Clico, amid the unit's increasing
$10 billion debt.
=================
V E N E Z U E L A
=================
* VENEZUELA: Seizes Assets of 60 Oilfield Service Companies
-----------------------------------------------------------
Matthew Walter and Daniel Cancel of Bloomberg News report that
Venezuelan President Hugo Chavez seized assets from 60 oilfield
services companies using a law the national assembly passed. The
report relates state-owned Petroleos de Venezuela SA (PDVSA)
worked to take over operations from companies that provided
services such as water and gas compression and maritime support.
“Today, the private services companies disappear, we don’t need
them, the people and workers can do the labor and be more
efficient,” the report quoted Mr. Chavez as saying. “We’re going
to bury capitalism in Venezuela.”
Venezuela seized two gas injection units called El Furrial and
PIGAP II from Tulsa, Oklahoma-based Williams Cos., PDVSA said in a
statement obtained by Bloomberg News. The report recalls on
April 30, Williams Cos. said it had declared PDVSA in default for
non-payment and might cease operations in Venezuela.
As reported in the Troubled Companny Reporter-Latin America on
May 7, 2009, Bloomberg News said PDVSA will take over some oil
field services being carried out by private companies after
lawmakers approved a bill to increase government control. The
National Assembly gave preliminary approval to allow the
government to take over activities including water injection into
oil wells, compressing natural gas and management of docks and
boats in Lake Maracaibo, Energy and Mines Commission Head Angel
Rodriguez said in an e-mailed statement obtained by Bloomberg
News. The same report related the statement said that if the
state took control from a company, the government would assess
payment at so-called book value and deduct labor and
environmental costs. Payment would be in cash, or securities, it
added. Bloomberg News said Venezuela has called on services
companies to lower fees by as much as 40% this year as PDVSA faces
increased debt after oil prices plunged. Energy and Oil Minister
Rafael Ramirez, as cited by Bloomberg News, said the government
would publish a list of companies that would be taken over. The
same report added the list of services companies that have
suspended work in Venezuela because of overdue bills is growing.
Meanwhile, Agence France Presse relates Venezuelan unions
estimated that nearly 22,000 oil contractors stand to lose their
jobs with Mr. Chavez's take over move. "This law does not benefit
us," Bernardino Chirinos, leader of the Union of Oil Workers in
the western state of Zulia, told El Nacional newspaper, AFP notes.
"There are 35,000 workers on the east coast (of Zulia state) and
only 8,000 will be absorbed. There are 22,000 workers without
guarantees."
LatinFrance reports the takeover decision is worrying macro
analysts, who fear it will contribute to further fundamental
deterioration in Venezuela. "Nationalizations might turn into an
expedient and quick political solution to the current large
payment arrears to suppliers, they might also entail a large
medium-term cost in terms of foregone oil production and overall
loss of economic efficiency," LatinFrance quoted Goldman Sachs as
saying. LatinFrance notes Goldman Sachs said the development
increases the risk of additional declines in oil production as
PDVSA is unlikely to be as efficient an operator as private sector
contractors.
* * *
According to Moody's Investors Service, Venezuela continues to
carry a B2 foreign currency rating and a B1 local currency rating
with stable outlook.
===============
X X X X X X X X
===============
* Fitch Releases April List of Rating Actions for Latin America
---------------------------------------------------------------
This is the comprehensive list of Fitch Ratings' 64 Latin American
national scale rating changes for the month of April, which
include: upgrades, downgrades, Rating Outlook and Rating Watch
revisions, and withdrawn ratings. These rating changes were
previously announced via separate press releases in Spanish or
Portuguese.
Fitch has upgraded these National ratings:
Compania de Seguros y Reaseguros Fortaleza S.A. (Bolivia)
-- National long-term rating to 'AA-(bol)' from 'A+(bol)';
Outlook revised to Stable from Positive.
(Rating action took place on April 7, 2009.)
Distribuidora de Electricidad del Sur, S.A. de C.V. (El Salvador)
-- National long-term rating to 'AA-(slv)' from 'A+(slv)'.
(Rating action took place on April 17, 2009.)
Quinenco S.A. (Chile)
-- National long-term rating to 'AA-(chl)' from 'A+(chl)';
Outlook revised to Stable from Positive;
-- Senior unsecured bonds series A1 (bono No. 229) national
long-term rating to 'AA-(chl)' from 'A+(chl)'; Outlook
Positive;
-- Senior unsecured bonds series A2 (bono No. 229) national
long-term rating to 'AA-(chl)' from 'A+(chl)'; Outlook
Positive;
-- Senior unsecured bonds series D (con cargo linea de bonos No.
426) national long-term rating to 'AA-(chl)' from 'A+(chl)';
Outlook Positive;
-- Senior unsecured debt issuance programme ser linea de bonos
No. 427 national long-term rating to 'AA-(chl)' from
'A+(chl)'; Outlook Positive.
(Rating actions took place on April 17, 2009.)
Seguros LAFISE, S.A. (Nicaragua)
-- National long-term rating to 'A+(nic)' from 'A(nic)'.
(Rating action took place on April 20, 2009.)
Estado de Sinaloa (Mexico)
-- National long-term rating to 'A+(mex)' from 'A(mex)'; Outlook
revised to Stable from Positive.
(Rating action took place on April 21, 2009.)
Cooperativa de Ahorro y Credito (FUCEREP) (Uruguay)
-- National long-term rating to 'BB+(ury)' from 'BB(ury)';
Outlook revised to Stable from Positive.
(Rating action took place on April 28, 2009.)
Fitch has also downgraded these ratings:
Banco Invex, S.A. (Mexico)
-- National long-term rating to 'A-(mex)' from 'A(mex)';
-- National short-term rating to 'F2(mex)' from 'F1(mex)'.
(Rating actions took place on April 3, 2009.)
Dulcor I (Argentina)
-- Trade receivables series Dulcor I national long-term rating
to 'BBB+(arg)' from 'AA(arg)'.
(Rating action took place on April 3, 2009.)
Invex Controladora, S.A.B. de C.V. (Mexico)
-- National long-term rating to 'BBB(mex)' from 'BBB+(mex)';
Outlook revised to Stable;
-- National short-term rating to 'F3(mex)' from 'F2(mex)';
Outlook revised to Stable;
-- S.A.B. de C.V. Prog. de C.B. de C.P. series 2008 national
short-term rating to 'F3(mex)' from 'F2(mex)'; Outlook
revised to Stable.
(Rating actions took place on April 7, 2009.)
Municipio de Puerto Penasco, Son (Mexico)
-- National long-term rating to 'BB+(mex)' from 'BBB-(mex)';
Outlook revised to Negative.
(Rating action took place on April 7, 2009.)
Asociacion Dominicana de Ahorros y Prestamos (Republica
Dominicana)
-- National long-term rating to 'BB(dom)' from 'BBB-(dom)';
-- National short-term rating to 'B(dom)' from 'F3(dom)'.
(Rating action took place on April 8, 2009.)
La Fabril (Republica Dominicana)
-- National long-term rating to 'A-(dom)' from 'A(dom)';
-- National short-term rating to 'F2(dom)' from 'F1(dom)'.
(Rating actions took place on April 8, 2009.)
Empresa Distribuidora San Luis S.A. (Argentina)
-- National long-term rating to 'BBB(arg)' from 'BBB+(arg)';
-- Guaranteed medium-term notes series 2 national long-term
rating to 'BBB(arg)' from 'BBB+(arg)'.
(Rating actions took place on April 13, 2009.)
Empresa Distribuidora de Electricidad de La Rioja (Argentina)
-- National long-term rating to 'BBB(arg)' from 'BBB+(arg)';
-- ONs Garantizadas Clase 3 national long-term rating to
'BBB(arg)' from 'BBB+(arg)'.
(Rating actions took place on April 13, 2009.)
Empresa Distribuidora de Electricidad de Salta S.A. (Argentina)
-- National long-term rating to 'BBB(arg)' from 'BBB+(arg)';
-- Medium-term notes series 1 national long-term rating to
'BBB(arg)' from 'BBB+(arg)'.
(Rating actions took place on April 13, 2009.)
Tuneles Concesionados de Acapulco, SA de CV, Tunel de Acapulco
toll road securitization (Mexico)
-- TUCACCB08 national long-term rating to 'AA-(mex)' from
'AA+(mex)'; Outlook revised to Negative.
(Rating action took place on April 14, 2009.)
Union de Credito para la Contaduria Publica, S.A. de C.V. (Mexico)
-- National long-term rating to 'BB(mex)' from 'BBB-(mex)';
Outlook revised to Stable.
(Rating action took place on April 16, 2009.)
FPB International Bank Inc (Panama)
-- National long-term rating to 'B(pan)' from 'B+(pan)'.
(Rating action took place on April 21, 2009.)
Metrofinanciera, S.A. De C.V. (Mexico)
-- National long-term rating to 'D(mex)' from 'C(mex)'; Rating
Watch Negative;
-- National short-term rating to 'D(mex)' from 'C(mex)'; Rating
Watch Negative;
-- CP ser 2007 national short-term rating to 'D(mex)' from
'C(mex)'; Rating Watch Negative;
-- METROFI 07 ser 2007 national long-term rating to 'D(mex)'
from 'C(mex)'; Rating Watch Negative;
-- METROFI 07-2 ser 2007 national long-term rating to 'D(mex)'
from 'C(mex)'; Rating Watch Negative.
(Rating actions took place on April 24, 2009.)
Metro METROCB032_033 (F#374) (Mexico)
-- Construction bridge loan series 2003 national long-term
rating to 'CC(mex)' from 'CCC(mex)'; Rating Watch Negative;
-- Construction bridge loan series 2003-2 national long-term
rating to 'CC(mex)' from 'CCC(mex)'; Rating Watch Negative.
(Rating actions took place on April 24, 2009.)
Metro METROCB073_074 (F#689) (Mexico)
-- Construction bridge loan series 2007-2 national long-term
rating to 'CC(mex)' from 'CCC(mex)'; Rating Watch Negative.
(Rating actions took place on April 24, 2009.)
Metro METROCB07_072 (F#590) (Mexico)
-- Construction bridge loan series 2007 national long-term
rating to 'CC(mex)' from 'CCC(mex)'; Rating Watch Negative.
(Rating action took place on April 24, 2009.)
Metrofinanciera Trust #650 (Mexico)
-- Construction bridge loan series 2007-1 national long-term
rating to 'CC(mex)' from 'CCC(mex)'; Rating Watch Negative.
(Rating action took place on April 24, 2009.)
Su Casita BRHSCCB063U_064U (F#385) (Mexico)
-- Residential mortgage-backed securitization series 2006-6
national long-term rating to 'A-(mex)' from 'A(mex)'; Outlook
Negative.
(Removed from Rating Watch Negative on April 27, 2009.)
Su Casita BRHSCCB06U_062U (F#360) (Mexico)
-- Residential mortgage-backed securitization series 2006-3
national long-term rating to 'A-(mex)' from 'A+(mex)';
Outlook revised to Negative.
(Rating action took place on April 27, 2009.)
Tenedora Nemak, S.A. De C.V. (Mexico)
-- National long-term rating to 'BB+(mex)' from 'A-(mex)';
Rating Watch Negative;
-- NEMAK 07 series 2007 national long-term rating to 'BBB(mex)'
from 'A+(mex)'; Rating Watch Negative.
(Rating actions took place on April 28, 2009.)
GMAC MXMACCB05U2 (F#247) (Mexico)
-- Residential mortgage-backed securitization series 2005-1
national long-term rating to 'AA+(mex)' from 'AAA(mex)';
Outlook Negative.
(Removed from Rating Watch Negative on April 28, 2009.)
GMAC MXMACCB06U (F#325) (Mexico)
-- Residential mortgage-backed securitization series 2005-1
national long-term rating to 'AA+(mex)' from 'AAA(mex)';
Outlook Negative.
(Removed from Rating Watch Negative on April 28, 2009.)
GMAC MXMACFW06U_062U (F#232017) (Mexico)
-- Residential mortgage-backed securitization series 2006
national long-term rating to 'BB(mex)' from 'BBB+(mex)';
Outlook Negative;
-- Residential mortgage-backed securitization series 2006
national long-term rating to 'BBB(mex)' from 'A(mex)';
Outlook Negative.
(Removed from Rating Watch Negative on April 28, 2009.)
GMAC MXMACFW073U_074U (F#238864) (Mexico)
-- Residential mortgage-backed securitization series 2007-1
national long-term rating to 'A-(mex)' from 'A(mex)'; Outlook
Negative;
(Removed from Rating Watch Negative on April 28, 2009.)
GMAC MXMACFW075U_076U (F#243264) (Mexico)
-- Residential mortgage-backed securitization series 2007-2
national long-term rating to 'BBB(mex)' from 'A(mex)';
Outlook Negative;
(Removed from Rating Watch Negative on April 28, 2009.)
GMAC MXMACFW07U_072U (F#233595) (Mexico)
-- Residential mortgage-backed securitization series 2007
national long-term rating to 'A+(mex)' from 'AA(mex)';
Outlook revised to Negative;
-- Residential mortgage-backed securitization series 2007
national long-term rating to 'A-(mex)' from 'A(mex)'; Outlook
revised to Negative.
(Rating actions took place on April 28, 2009.)
Transa Securitizadora - PS 1996-1 (Chile)
-- PS 1996-1 residential mortgage-backed securitization series
1996-1 national long-term rating to 'BBB(chl)' from
'A+(chl)'; remains on Rating Watch Negative.
(Rating action took place on April 28, 2009.)
Transa Securitizadora - PS 1997-2 (Chile)
-- PS 1997-2 residential mortgage-backed securitization series
1997-2 national long-term rating to 'BBB(chl)' from 'A(chl)';
remains on Rating Watch Negative.
(Rating action took place on April 28, 2009.)
Transa Securitizadora - PS 1998-3 (Chile)
-- PS 1998-3 residential mortgage-backed securitization series
1998-3 national long-term rating to 'BB(chl)' from
'BBB(chl)'; remains on Rating Watch Negative.
(Rating action took place on April 28, 2009.)
Transa Securitizadora - PS 2000-4 (Chile)
-- PS 2000-4 residential mortgage-backed securitization series
2000-4 national long-term rating to 'BBB(chl)' from 'A(chl)';
remains on Rating Watch Negative.
(Rating action took place on April 28, 2009.)
Transa Securitizadora - PS 2001-5 (Chile)
-- PS 2001-5 residential mortgage-backed securitization series
2001-5 national long-term rating to 'BBB(chl)' from 'A(chl)';
remains on Rating Watch Negative.
(Rating action took place on April 28, 2009.)
Hipotecaria Credito y Casa, S.A. de C.V. (Mexico)
-- National long-term rating to 'D(mex)' from 'BBB(mex)';
Outlook Negative;
-- National short-term rating to 'D(mex)' from 'F3(mex)'.
(Rating actions took place on April 28, 2009.)
Masisa S.A. (Chile)
-- National long-term rating to 'A-(chl)' from 'A(chl)'; Outlook
revised to Stable from Negative.
(Rating action took place on April 29, 2009.)
Sociedad de Inversiones Campos Chilenos S.A. (Chile)
-- National Equity Rating to 'Primera Clase Nivel 4' from
'Primera Clase Nivel 3'.
(Rating action took place on April 30, 2009.)
Creyc CREYCB06_062 (F#594) (Mexico)
-- Construction bridge loan series 2006-2 national long-term
rating to 'AA-(mex)' from 'AAA(mex)'; placed on Rating Watch
Negative;
-- Construction bridge loan series 2006-3 national long-term
rating to BB+(mex)' from 'A(mex)'; placed on Rating Watch
Negative.
(Rating actions took place on April 30, 2009.)
Creyc CREYCB07_072 (F#637) (Mexico)
-- Construction bridge loan series 2007 national long-term
rating to 'AA-(mex)' from 'AAA(mex)'; placed on Rating Watch
Negative;
-- Construction bridge loan series 2007 national long-term
rating to BB+(mex)' from 'A+(mex)'; placed on Rating Watch
Negative.
(Rating actions took place on April 30, 2009.)
Fitch has made this Outlook and Rating Watch revisions:
Credito Inmobiliario, S.A. (Mexico)
-- Credito Inmobiliario, S.A. de C.V. CINMOBI 07-3 series 2007
national long-term rating 'A(mex)'; placed on Rating Watch
Positive;
-- Credito Inmobiliario, S.A. de C.V. CINMOBI 07-2 series 2007
national long-term rating 'BBB+(mex)'; placed on Rating Watch
Positive;
-- Credito Inmobiliario, S.A. de C.V. senior unsecured
certificates national short-term rating 'F2(mex)'; placed on
Rating Watch Positive;
-- Credito Inmobiliario, S.A. de C.V. senior unsecured
certificates national short-term rating 'F2(mex)'; placed on
Rating Watch Positive;
-- Credito Inmobiliario, S.A. de C.V. CINMOB 07 series 2007
national long-term rating 'A(mex)'; placed on Rating Watch
Positive.
(Rating actions took place on April 6, 2009.)
Banchile Securitizadora - PS 2008-13 (Chile)
-- Residential mortgage-backed securitization series 2008-13
ISSUE DETAIL - B national long-term rating 'A(chl)'; Outlook
revised to Stable;
-- Residential mortgage-backed securitization series 2008-13
ISSUE DETAIL - A national long-term rating 'AA(chl)'; Outlook
revised to Stable;
-- Residential mortgage-backed securitization series 2008-13
ISSUE DETAIL - D national long-term rating 'BB(chl)'; Outlook
revised to Stable;
-- Residential mortgage-backed securitization series 2008-13
ISSUE DETAIL - C national long-term rating 'BBB(chl)';
Outlook revised to Stable.
(Rating actions took place on April 7, 2009.)
ITAU Chile Securitizadora - PS 2006-5 (Chile)
-- Residential mortgage-backed securitization series 2006-5
ISSUE DETAIL - A national long-term rating 'AA(chl)'; Outlook
revised to Negative;
-- Residential mortgage-backed securitization series 2006-5
ISSUE DETAIL - C national long-term rating 'AA(chl)'; Outlook
revised to Negative;
-- Residential mortgage-backed securitization series 2006-5
ISSUE DETAIL - D national long-term rating 'BBB(chl)';
Outlook revised to Negative.
(Rating actions took place on April 7, 2009.)
Santander Sociedad Securitizadora - PS 2000-2 (Chile)
-- PS 2000-2 residential mortgage-backed securitization series
2000-2 ISSUE DETAIL - C national long-term rating 'AA(chl)';
Outlook revised to Positive;
-- PS 2000-2 residential mortgage-backed securitization series
2000-2 ISSUE DETAIL - D national long-term rating 'AA(chl)';
Outlook revised to Positive;
-- PS 2000-2 residential mortgage-backed securitization series
2000-2 ISSUE DETAIL - A national long-term rating 'AA(chl)';
Outlook revised to Stable;
-- PS 2000-2 residential mortgage-backed securitization series
2000-2 ISSUE DETAIL - B national long-term rating 'AA(chl)';
Outlook revised to Stable.
(Rating actions took place on April 7, 2009.)
Santander Sociedad Securitizadora - PS 2000-5 (Chile)
-- Residential mortgage-backed securitization series 2000-5
ISSUE DETAIL - A national long-term rating 'AA+(chl)';
Outlook revised to Stable;
-- Residential mortgage-backed securitization series 2000-5
ISSUE DETAIL - B national long-term rating 'AA+(chl)';
Outlook revised to Stable.
(Rating actions took place on April 7, 2009.)
Securitizadora La Construccion - PS 2000-1 (Chile)
-- Residential mortgage-backed securitization series 2000-1
ISSUE DETAIL - B national long-term rating 'AAA(chl)';
Outlook revised to Stable.
(Rating action took place on April 7, 2009.)
Santander Sociedad Securitizadora - PS 1999-1 (Chile)
-- Residential mortgage-backed securitization series 1999-1
ISSUE DETAIL - B national long-term rating 'AA(chl)'; placed
on Rating Watch Negative;
-- Residential mortgage-backed securitization series 1999-1
ISSUE DETAIL - A national long-term rating 'AA(chl)'; placed
on Rating Watch Negative.
(Rating actions took place on April 7, 2009.)
Santander Sociedad Securitizadora - PS 2001-6 (Chile)
-- Residential mortgage-backed securitization series 2001-6
ISSUE DETAIL - A national long-term rating 'AA(chl)'; placed
on Rating Watch Negative;
-- Residential mortgage-backed securitization series 2001-6
ISSUE DETAIL - B national long-term rating 'AA(chl)'; placed
on Rating Watch Negative.
(Rating actions took place on April 7, 2009.)
Vision Brazil FIDC Agro MultiCredito (Brasil)
-- Cotas Seniores national long-term rating 'AA(bra)'; placed on
Rating Watch Negative;
-- Cotas Subordinadas Juniores national long-term rating
'CCC(bra)'; placed on Rating Watch Negative;
-- Cotas Cotas Mezanino national long-term rating 'BBB-(bra)';
placed on Rating Watch Negative.
(Rating actions took place on April 14, 2009.)
Corporacion Geo - Geo GEOCB04_05 (F#80373) (Mexico)
-- Trade receivables series 2004 ISSUE DETAIL - GEOCB04
national long-term rating 'AAA(mex)'; placed on Rating Watch
Negative;
-- Trade receivables series 2005 ISSUE DETAIL - GEOCB05 national
long-term rating 'AAA(mex)'; placed on Rating Watch Negative.
(Rating actions took place on April 16, 2009.)
Banco UBS Pactual S.A. (Brasil)
-- National long-term rating 'AAA(bra)'; placed on Rating Watch
Negative;
-- National short-term rating 'F1+(bra)'; placed on Rating Watch
Negative.
(Rating actions took place on April 22, 2009.)
Banco del Exito, S.A. (Nicaragua)
-- National long-term rating 'BBB+(nic)'; Outlook revised to
Negative from Stable.
(Rating action took place on April 22, 2009.)
Su Casita BRHSCCB063U_064U (F#385) (Mexico)
-- Residential mortgage-backed securitization series 2006-5
ISSUE DETAIL - BRHSCCB06-3U national long-term rating
'AAA(mex)'; placed on Rating Watch Negative;
-- Residential mortgage-backed securitization ser 2006-5 ISSUE
DETAIL - BRHSCCB06-4U national long-term rating 'A-(mex)';
Outlook revised to Negative.
(Rating actions took place on April 27, 2009.)
Su Casita BRHSCCB06U_062U (F#360) (Mexico)
-- Residential mortgage-backed securitization series 2006-2
ISSUE DETAIL - BRHSCCB06U national long-term rating
'AAA(mex)'; placed on Rating Watch Negative.
(Rating action took place on April 27, 2009.)
Concesionaria Zonalta, SA de CV Autopista El Altar - Santa Ana
(Mexico)
-- Santa Ana toll road securitization ISSUE DETAIL - ZONALCB 06U
national long-term rating 'A-(mex)'; Negative Outlook.
(Removed from Rating Watch Negative on April 27, 2009.)
GMAC MXMACCB05U (F#196) (Mexico)
-- Residential mortgage-backed securitization series 2005-1
ISSUE DETAIL - MXMACCB 05U national long-term rating
'AAA(mex)'; Outlook revised to Negative.
(Rating action took place on April 28, 2009.)
RBS Securitizadora - PS 2004-4 (Chile)
-- PS 2004-4 credit card receivables series 2004-4 ISSUE DETAIL
- A national long-term rating 'AA(chl)'; Outlook revised to
Positive.
(Rating action took place on April 30, 2009.)
Colbun S.A. (Colbun) (Chile)
-- National long-term rating 'A(chl)'; removed from Rating Watch
Negative; Outlook Stable;
-- Debt series 30 ISSUE DETAIL - Colbun S.A. (Colbun) debt
series 30 national long-term rating 'A(chl)'; removed from
Rating Watch Negative;
-- Debt series 30 ISSUE DETAIL - Colbun S.A. (Colbun) debt
series 30 national short-term rating 'F1(chl)'; removed from
Rating Watch Negative;
-- Senior unsecured bonds series C (bono No. 234) national long-
term rating 'A(chl)'; removed from Rating Watch Negative;
-- Senior unsecured bonds series r E (con cargo linea de bonos
No. 500) national long-term rating 'A(chl)'; removed from
Rating Watch Negative;
-- Senior unsecured bonds series F (con cargo linea de bonos No.
499) national long-term rating 'A(chl)'; removed from Rating
Watch Negative;
-- Senior unsecured bonds series G (con cargo linea de bonos No.
537) national long-term rating 'A(chl)'; removed from Rating
Watch Negative;
-- Senior unsecured bonds series H (con cargo linea de bonos No.
537) national long-term rating 'A(chl)'; removed from Rating
Watch Negative;
-- Senior unsecured bonds series I (con cargo linea de bonos No.
538) national long-term rating 'A(chl)'; removed from Rating
Watch Negative.
(Rating actions took place on April 30, 2009.)
Fitch has affirmed and withdrawn these ratings:
Union de Credito de Hidalgo, S.A. de C.V. (Mexico)
-- National long-term rating 'B-(mex)';
-- National short-term rating 'B(mex)'.
(Rating actions took place on April 2, 2009.)
Asociacion Noroestana de Ahorros y Prestamos (Republica
Dominicana)
-- National long-term rating 'BBB(dom)';
-- National short-term rating 'F3(dom)'.
(Rating actions took place on April 7, 2009.)
Mapfre Compania de Seguros de Vida de Chile S.A. (Chile)
-- National Insurer Financial Strength 'A(chl)'.
(Rating action took place on April 7, 2009.)
Municipio de Corregidora, Queretaro (Mexico)
-- National long-term rating 'A(mex)'.
(Rating action took place on April 14, 2009.)
C&A serie VII (Argentina)
-- Certificados de Participacion (CP) national long-term rating
'CCC(arg)'.
(Rating action took place on April 16, 2009.)
* Large Companies With Insolvent Balance Sheets
-----------------------------------------------
Total Shareholders
Assets Equity
Company Ticker (US$MM) (US$MM)
------- ------ ------------ -------
ARGENTINA
COMERCIAL PL-ADR SCPDS LI 531491040 -882216960
SNIAFA SA-B SDAGF US 39681268 -2901931
IMPSAT FIBER-CED IMPT AR 535007008 -17165000
IMPSAT FIBER-BLK IMPTB AR 535007008 -17165000
IMPSAT FIBER NET IMPTQ US 535007008 -17165000
COMERCIAL PLAT-$ COMED AR 531491040 -882216960
SNIAFA SA-B SNIA5 AR 39681268 -2901931
IMPSAT FIBER-C/E IMPTC AR 535007008 -17165000
IMPSAT FIBER-$US IMPTD AR 535007008 -17165000
IMPSAT FIBER NET XIMPT SM 535007008 -17165000
SOC COMERCIAL PL SCDPF US 531491040 -882216960
SNIAFA SA SNIA AR 39681268 -2901931
SOC COMERCIAL PL CADN SW 531491040 -882216960
IMPSAT FIBER NET 330902Q GR 535007008 -17165000
SOC COMERCIAL PL CVVIF US 531491040 -882216960
COMERCIAL PLA-BL COMEB AR 531491040 -882216960
SOC COMERCIAL PL COME AR 531491040 -882216960
SOC COMERCIAL PL CAD IX 531491040 -882216960
BRAZIL
CTM CITRUS-RCT C CTP5 BZ 79728000 -1381000
MARAMBAIA-PREF CTMMF US 79728000 -1381000
HOPI HARI-PREF PQTM4 BZ 142677008 -412668992
PET MANG-RECEIPT RPMG9 BZ 183988992 -66954004
DTC DIRECT CO SA 1DTCON BZ 14084000 -3661000
HOPI HARI SA PQTM3 BZ 142677008 -412668992
DTCOM- DIRECT-PR DTCY4 BZ 14084000 -3661000
CONST A LIND-PRF LINDPN BZ 51808000 -13659000
CTM CITRUS-ADR CTMMY US 79728000 -1381000
PARQUE TEM-RCT C PQTM9 BZ 142677008 -412668992
SANSUY SA-PREF B SNSYBN BZ 232096000 -106033000
PETRO MANGUINHOS RPMG3 BZ 183988992 -66954004
PET MANG-RIGHTS RPMG2 BZ 183988992 -66954004
FERRAGENS HAGA HAGAON BZ 24512548 -113844104
RIOSULENSE SA RSUL3 BZ 123162000 -5599000
CIMOB PART-PREF GAFPN BZ 90471752 -77366408
PET MANGUINH-PRF RPMG4 BZ 183988992 -66954004
PET MANG-RIGHTS RPMG1 BZ 183988992 -66954004
RIMET REEMON BZ 144454000 -232197008
ARTHUR LANGE ARLA3 BZ 34053000 -26011000
RIMET REEM3 BZ 144454000 -232197008
TEXTEIS RENAUX RENXPN BZ 87429000 -151598992
TEXTEIS RENAUX RENXON BZ 87429000 -151598992
GAZOLA-RCPT PREF GAZO10 BZ 27266214 -73665296
FER C ATL-RCT PF VSPT10 BZ 2083969920 -71092000
CIA DE RECUPERAC CRSC3 BZ 21806000 -43811000
DTCOM- DIR TO CO DTCY3 BZ 14084000 -3661000
VARIG SA-PREF VAGV4 BZ 2094450944 -10176870400
FER C ATL-RCT CM VSPT9 BZ 2083969920 -71092000
NORDON METAL NORDON BZ 36341000 -32125000
MMX MINERACAO MMXCF US 232865203 -101079000
MMX MINERACAO MMXM3 BZ 2328652032 -101079000
HERCULES HETA3 BZ 25126000 -273456000
DTCOM-RT DTCY1 BZ 14084000 -3661000
KUALA-PREF ARTE4 BZ 11856000 -33570000
HERCULES-PREF HETA4 BZ 25126000 -273456000
VARIG PART EM-PR VPTA4 BZ 107416000 -867658048
PARQUE TEM-RT PF PQTM2 BZ 142677008 -412668992
TECEL S JOSE SJOS3 BZ 42233000 -41080000
DOC IMBITUB-PREF IMBI4 BZ 205018992 -25437000
DOCAS IMBITUBA IMBION BZ 205018992 -25437000
NOVA AMERICA SA NOVAON BZ 40955000 -353104000
NOVA AMERICA-PRF NOVAPN BZ 40955000 -353104000
CHIARELLI SA CCHI3 BZ 42853000 -85685000
NOVA AMERICA-PRF NOVA4 BZ 40955000 -353104000
PARQUE TEM-RT CM PQTM1 BZ 142677008 -412668992
PARQUE TEM-RCT P PQTM10 BZ 142677008 -412668992
MINUPAR SA-PREF MNPRPN BZ 181516992 -38402000
PARQUE TEM-DV PF PQT6 BZ 142677008 -412668992
MINUPAR MNPR3 BZ 181516992 -38402000
SANSUY SNSY3 BZ 232096000 -106033000
WETZEL SA MWELON BZ 145738992 -8419000
MINUPAR-PREF MNPR4 BZ 181516992 -38402000
MINUPAR SA MNPRON BZ 181516992 -38402000
NORDON MET-RTS NORD1 BZ 36341000 -32125000
NORDON MET NORD3 BZ 36341000 -32125000
WETZEL SA-PREF MWELPN BZ 145738992 -8419000
WETZEL SA MWET3 BZ 145738992 -8419000
TEXTEIS RENAU-RT TXRX1 BZ 87429000 -151598992
BOTUCATU TEXTIL STRP3 BZ 62175000 -12000000
TEC TOY SA-PREF TOYDF US 41457000 -10455000
WETZEL SA-PREF MWET4 BZ 145738992 -8419000
RENAUXVIEW SA-PF TXRX4 BZ 87429000 -151598992
TEXTEIS RENA-RCT TXRX9 BZ 87429000 -151598992
TEXTEIS RENAU-RT TXRX2 BZ 87429000 -151598992
STAROUP SA-PREF STARPN BZ 62175000 -12000000
TECTOY-PREF TOYB4 BZ 41457000 -10455000
CAMBUCI SA CAMB3 BZ 169194000 -39565000
FABRICA TECID-RT FTRX1 BZ 125797000 -64182000
FABRICA RENAUX FTRX3 BZ 125797000 -64182000
TECTOY SA TOYBON BZ 41457000 -10455000
TECTOY SA-PREF TOYBPN BZ 41457000 -10455000
FER HAGA-PREF HAGA4 BZ 24512548 -113844104
GAZOLA-PREF GAZO4 BZ 27266214 -73665296
MMX MINERACA-GDR MMXMY US 2328652032 -101079000
CTM CITRUS- PR R CTPC2 BZ 79728000 -1381000
SANSUY-PREF A SNSY5 BZ 232096000 -106033000
FER C ATLANT-PRF VSPT4 BZ 2083969920 -71092000
BUETTNER SA-RTS BUET1 BZ 172912000 -59558000
MMX MINERACA-GDR XMM CN 2328652032 -101079000
BUETTNER BUET3 BZ 172912000 -59558000
WIEST SA WISAON BZ 71372000 -140973008
VARIG SA-PREF VARGPN BZ 2094450944 -10176870400
VARIG PART EM TR VPTA3 BZ 107416000 -867658048
VARIG SA VAGV3 BZ 2094450944 -10176870400
VARIG SA VARGON BZ 2094450944 -10176870400
FERROVIA CEN-DVD VSPT11 BZ 2083969920 -71092000
FERROVIA CEN-DVD VSPT12 BZ 2083969920 -71092000
HERCULES SA-PREF HERTPN BZ 25126000 -273456000
PETRO MANGUINHOS MANGON BZ 183988992 -66954004
SANSUY SA-PREF A SNSYAN BZ 232096000 -106033000
SAUIPE SA-PREF PSEGPN BZ 17641202 -16319050
FER C ATLANT VSPT3 BZ 2083969920 -71092000
SANSUY-PREF B SNSY6 BZ 232096000 -106033000
TECTOY-RCT PREF TOYB10 BZ 41457000 -10455000
TEXTEIS RENA-RCT TXRX10 BZ 87429000 -151598992
SANSUY SA SNSYON BZ 232096000 -106033000
STAROUP SA STARON BZ 62175000 -12000000
SCHLOSSER SA SCHON BZ 21962000 -118044000
SCHLOSSER SA-PRF SCHPN BZ 21962000 -118044000
RIOSULENSE SA RSULON BZ 123162000 -5599000
MMX MINERACAO TRES3 BZ 2328652032 -101079000
TECEL S JOSE-PRF SJOS4 BZ 42233000 -41080000
FERREIRA GUIM-PR FGUIPN BZ 27184000 -242104992
CORREA RIBEIRO CORION BZ 10835000 -154000
SCHLOSSER-PREF SCLO4 BZ 21962000 -118044000
WIEST-PREF WISA4 BZ 71372000 -140973008
TEKA-ADR TKTQY US 438609024 -528801024
TEKA-PREF TKTPF US 438609024 -528801024
TEKA-ADR TKTPY US 438609024 -528801024
TECTOY-PF-RTS5/6 TOYB11 BZ 41457000 -10455000
ACO ALTONA-PREF EAAPN BZ 180308000 -22762000
TECTOY-RTS/3 TOYB1 BZ 41457000 -10455000
RENAUXVIEW SA TXRX3 BZ 87429000 -151598992
TEKA-PREF TEKA4 BZ 438609024 -528801024
NOVA AMERICA SA NOVA3 BZ 40955000 -353104000
BOTUCATU-PREF STRP4 BZ 62175000 -12000000
TEKA TEKA3 BZ 438609024 -528801024
ACO ALTONA EALT3 BZ 180308000 -22762000
RIOSULENSE SA-PR RSULPN BZ 123162000 -5599000
TEKA-PREF TEKAPN BZ 438609024 -528801024
MMX MINERACA-GDR 3M11 GR 2328652032 -101079000
SAUIPE-PREF PSEG4 BZ 17641202 -16319050
CAF BRASILIA-PRF CAFE4 BZ 91264000 -1143923968
CONST A LINDEN CALI3 BZ 51808000 -13659000
DHB IND E COM DHBON BZ 221336000 -588646016
AZEVEDO E TRAVAS AZEVON BZ 114608000 -10504000
CAMBUCI SA-PREF CAMB4 BZ 169194000 -39565000
CAMBUCI SA CAMBON BZ 169194000 -39565000
CONST A LIND-PRF CALI4 BZ 51808000 -13659000
TEC TOY SA-PREF TOYB5 BZ 41457000 -10455000
WIEST SA-PREF WISAPN BZ 71372000 -140973008
BUETTNER SA-RT P BUET2 BZ 172912000 -59558000
BOMBRIL CIRIO SA BOBRON BZ 460744992 -485765024
BOMBRIL CIRIO-PF BOBRPN BZ 460744992 -485765024
FERREIRA GUIMARA FGUION BZ 27184000 -242104992
BOMBRIL BOBR3 BZ 460744992 -485765024
DOCA INVESTI-PFD DOCA4 BZ 428661984 -53866000
BUETTNER-PREF BUET4 BZ 172912000 -59558000
CORREA RIBEIR-PR CORR4 BZ 10835000 -154000
GAZOLA SA-DVD CM GAZO11 BZ 27266214 -73665296
CORREA RIBEIRO CORIPN BZ 10835000 -154000
CORREA RIBEIRO CORR3 BZ 10835000 -154000
RIOSULENSE SA-PR RSUL4 BZ 123162000 -5599000
PROMAN PRMN3 BZ 24221000 -555000
CAFE BRASILIA SA CSBRON BZ 91264000 -1143923968
CAFE BRASILIA-PR CSBRPN BZ 91264000 -1143923968
TEKA TEKAON BZ 438609024 -528801024
CHIARELLI SA-PRF CCHI4 BZ 42853000 -85685000
CHIARELLI SA CCHON BZ 42853000 -85685000
GAZOLA SA-PREF GAZPN BZ 27266214 -73665296
GAZOLA SA GAZON BZ 27266214 -73665296
BOMBRIL SA-ADR BMBPY US 460744992 -485765024
CAMBUCI SA-PREF CAMBPN BZ 169194000 -39565000
CHIARELLI SA-PRF CCHPN BZ 42853000 -85685000
BOMBRIL-RGTS PRE BOBR2 BZ 460744992 -485765024
ARTHUR LAN-DVD C ARLA11 BZ 34053000 -26011000
ARTHUR LANGE-PRF ALICPN BZ 34053000 -26011000
ARTHUR LANG-RT C ARLA1 BZ 34053000 -26011000
RIMET-PREF REEM4 BZ 144454000 -232197008
ARTHUR LANGE-PRF ARLA4 BZ 34053000 -26011000
ARTHUR LAN-DVD P ARLA12 BZ 34053000 -26011000
ARTHUR LANG-RT P ARLA2 BZ 34053000 -26011000
AZEVEDO-PREF AZEV4 BZ 114608000 -10504000
F GUIMARAES-PREF FGUI4 BZ 27184000 -242104992
DTC DIRECT CO-RT 1DTCONR BZ 14084000 -3661000
GASCOIGNE EMPREE 1GASON BZ 1408963968 -1025910016
TEKA-ADR TEKAY US 438609024 -528801024
TECEL S JOSE-PRF FTSJPN BZ 42233000 -41080000
NOVA AMERICA-PRF 1NOVPN BZ 40955000 -353104000
TRESSEM PART SA 1TSSON BZ 2328652032 -101079000
MARAMBAIA-PREF CTPC4 BZ 79728000 -1381000
SCHLOSSER SCLO3 BZ 21962000 -118044000
AZEVEDO E TRA-PR AZEVPN BZ 114608000 -10504000
BOMBRIL BMBBF US 460744992 -485765024
BUETTNER SA-PRF BUETPN BZ 172912000 -59558000
BOMBRIL-PREF BOBR4 BZ 460744992 -485765024
BOMBRIL-RIGHTS BOBR1 BZ 460744992 -485765024
ARTHUR LANG-RC P ARLA10 BZ 34053000 -26011000
DOC IMBITUBA IMBI3 BZ 205018992 -25437000
ARTEX SA ARTXON BZ 11856000 -33570000
ESTRELA SA ESTRON BZ 122917000 -93033000
KUALA ARTE3 BZ 11856000 -33570000
GASCOIGNE EMP-PF 1GASPN BZ 1408963968 -1025910016
CAF BRASILIA CAFE3 BZ 91264000 -1143923968
ARTEX SA-PREF ARTXPN BZ 11856000 -33570000
ACO ALTONA-PREF EALT4 BZ 180308000 -22762000
TECTOY-BONUS RTS TOYB13 BZ 41457000 -10455000
TECTOY TOYB3 BZ 41457000 -10455000
FABRICA RENAUX FRNXON BZ 125797000 -64182000
FABRICA RENAUX-P FRNXPN BZ 125797000 -64182000
ARTHUR LANGE SA ALICON BZ 34053000 -26011000
CIMOB PARTIC SA GAFON BZ 90471752 -77366408
FABRICA RENAUX-P FTRX4 BZ 125797000 -64182000
TECEL S JOSE FTSJON BZ 42233000 -41080000
ARTHUR LANG-RC C ARLA9 BZ 34053000 -26011000
ESTRELA SA-PREF ESTRPN BZ 122917000 -93033000
ESTRELA SA ESTR3 BZ 122917000 -93033000
ESTRELA SA-PREF ESTR4 BZ 122917000 -93033000
CIMOB PART-PREF GAFP4 BZ 90471752 -77366408
PARQUE TEM-DV CM PQT5 BZ 142677008 -412668992
F GUIMARAES FGUI3 BZ 27184000 -242104992
NOVA AMERICA SA 1NOVON BZ 40955000 -353104000
CIMOB PARTIC SA GAFP3 BZ 90471752 -77366408
HAGA HAGA3 BZ 24512548 -113844104
TEC TOY SA-PF B TOYB6 BZ 41457000 -10455000
TECTOY-RCT ORD TOYB9 BZ 41457000 -10455000
SAUIPE SA PSEGON BZ 17641202 -16319050
HERCULES SA HERTON BZ 25126000 -273456000
DOC IMBITUBA-RTC IMBI1 BZ 205018992 -25437000
PET MANG-RECEIPT RPMG10 BZ 183988992 -66954004
FERRAGENS HAGA-P HAGAPN BZ 24512548 -113844104
ALL MALHA PAULIS GASC3 BZ 1408963968 -1025910016
GASCOIGNE EMP-PF GASC4 BZ 1408963968 -1025910016
BUETTNER SA BUETON BZ 172912000 -59558000
GAZOLA-RCPTS CMN GAZO9 BZ 27266214 -73665296
GAZOLA SA-DVD PF GAZO12 BZ 27266214 -73665296
GAZOLA GAZO3 BZ 27266214 -73665296
RIMET-PREF REEMPN BZ 144454000 -232197008
PETRO MANGUIN-PF MANGPN BZ 183988992 -66954004
N.A. DTCY9 BZ 14084000 -3661000
CTM CITRUS-RCT C CTPC9 BZ 79728000 -1381000
BOMBRIL SA-ADR BMBBY US 460744992 -485765024
MARAMBAIA CTPC3 BZ 79728000 -1381000
DHB IND E COM-PR DHBPN BZ 221336000 -588646016
D H B-PREF DHBI4 BZ 221336000 -588646016
D H B DHBI3 BZ 221336000 -588646016
CAMBUCI SA-PREF CXDOF US 169194000 -39565000
SAUIPE PSEG3 BZ 17641202 -16319050
CTM CITRUS-PREF CTMPN BZ 79728000 -1381000
CTM CITRUS SA CTMON BZ 79728000 -1381000
AZEVEDO AZEV3 BZ 114608000 -10504000
WIEST WISA3 BZ 71372000 -140973008
CTM CITRUS-RCT P CTPC10 BZ 79728000 -1381000
CTM CITRUS-COM R CTPC1 BZ 79728000 -1381000
CTM CITRUS-RCT P CTP6 BZ 79728000 -1381000
TECTOY-RCPT PF B TOYB12 BZ 41457000 -10455000
CONST A LINDEN LINDON BZ 51808000 -13659000
DOC IMBITUBA-RTP IMBI2 BZ 205018992 -25437000
ACO ALTONA SA EAAON BZ 180308000 -22762000
DOCAS IMBITUB-PR IMBIPN BZ 205018992 -25437000
DOCAS SA-PREF DOCAPN BZ 428661984 -53866000
DOCAS SA DOCAON BZ 428661984 -53866000
TEKA TKTQF US 438609024 -528801024
DOCAS SA-RTS PRF DOCA2 BZ 428661984 -53866000
DOCA INVESTIMENT DOCA3 BZ 428661984 -53866000
COLOMBIA
TELEX-A TELEXA CI 219760902144 -15259209728
ENACAR EMPOF US 2551085824 -36098428928
CHILESAT CO-ADR TL US 219760902144 -15259209728
TELMEX CORP-ADR CSAOY US 219760902144 -15259209728
ENACAR-RT ENACARO CI 2551085824 -36098428928
CARVILE CARVILE CI 940892992 -34319321088
CHILESAT CO-RTS CHISATOS CI 219760902144 -15259209728
TELMEX CORP SA CHILESAT CI 219760902144 -15259209728
TELEX-RTS TELEXO CI 219760902144 -15259209728
N.A. CARVILEO CI 940892992 -34319321088
ENACAR ENACAR CI 2551085824 -36098428928
CHILESAT CORP SA TELEX CI 219760902144 -15259209728
***********
Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Monday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-LA constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-LA editor holds
some position in the issuers' public debt and equity securities
about which we report.
Tuesday's edition of the TCR-LA features a list of companies
with insolvent balance sheets obtained by our editors based on
the latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR-LA. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
***********
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
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Marie Therese V. Profetana, Marites O. Claro, Joy
A. Agravente, Pius Xerxes V. Tovilla, Rousel Elaine C. Tumanda,
Valerie C. Udtuhan, Frauline S. Abangan, and Peter A. Chapman,
Editors.
Copyright 2009. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.
* * * End of Transmission * * *