/raid1/www/Hosts/bankrupt/TCRLA_Public/100505.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
Wednesday, May 5, 2010, Vol. 11, No. 087
Headlines
A N T I G U A & B A R B U D A
STANFORD INT'L: Investors Lash Out at International Monetary Fund
* ANTIGUA & BARBUDA: SVC Blasted IMF for Ignoring its Request
A R G E N T I N A
AGRIBEST SA: Asks for Preventive Contest
INDUGRAF SA: Creditors' Proofs of Debt Due on June 10
INDUPROF SRL: Creditors' Proofs of Debt Due on May 14
INFORMES COLUMBO: Creditors' Proofs of Debt Due on May 18
KEY DIGITAL: Requests for Preventive Contest
MUTUAL DE DISTRIBUIDORES: Creditors' Proofs of Debt Due on May 28
SIMON BROTHERS: Creditors' Proofs of Debt Due on May 11
TELECOM ARGENTINA: Board OKs P$1.05 Million Cash Dividend
TRANSPORTES TRA-MA: Asks for Preventive Contest
B E R M U D A
CLICO ENERGY: Creditors' Proofs of Debt Due on May 7
CLICO ENERGY: Members to Receive Wind-Up Report on May 28
COPELCO REINSURANCE: Creditors' Proofs of Debt Due on May 19
COPELCO REINSURANCE: Members to Hear Wind-Up Report on June 8
EDGEN MURRAY: Creditors' Proofs of Debt Due on May 10
EDGEN MURRAY: Member to Receive Wind-Up Report on May 26
MLMIC INSURANCE: Creditors' Proofs of Debt Due on May 7
MLMIC INSURANCE: Members to Receive Wind-Up Report on May 28
PVAXX LIMITED: Creditors' Proofs of Debt Due on May 17
PVAXX LIMITED: Creditors and Members to Meet on May 24
B R A Z I L
BANCO KDB: Fitch Withdraws Individual Rating at 'E'
BR MALLS: First Quarter Revenue Up 31.7% to R$106.3 Million
CAMARGO CORREA: Cimpor Unit Could Sell Shares
COMPANHIA SIDERURGICA: JPMorgan Chase Cuts Rating on Stock
COMPANHIA SIDERURGICA: To Invest US$19.57 Billion Until 2016
GAFISA SA: First Quarter Profit Jumps 77% to BRL64.8 Million
ODEBRECHT FINANCE: To Issue New Perpetual Bonds
ODEBRECHT FINANCE: Fitch Assigns 'BB+' Rating on US$200 Mil. Notes
ODEBRECHT FINANCE: S&P Assigns 'BB' Rating on $200 Mil. Notes
C H I L E
CORP GROUP: Decrease on Bond Issues Won't Affect S&P's BB Rating
C O L O M B I A
BANCO DE COMERCIO: S&P Affirms 'BB+' Long-Term Currency Rating
BANCO DE COMERCIO: S&P Affirms 'BB+' Long-Term Currency Rating
E L S A L V A D O R
BANCO AGRICOLA: Fitch Affirms Issuer Default Rating at 'BB+'
J A M A I C A
AIR JAMAICA: Top Management Still in Place
AIR JAMAICA: President Addresses Statutory Deductions Concerns
CASH PLUS: Investors Rush Liquidator's Office
SUGAR COMPANY OF JAMAICA: Int'l Firms Want to Invest in Factories
M E X I C O
FINANCIERA INDEPENDENCIA: S&P Affirms 'BB-' Counterparty Rating
P U E R T O R I C O
FIRSTBANK PUERTO RICO: Wins Foreclosure on 92-Unit Miami Project
V E N E Z U E L A
SIDERURGICA DEL TURBIO: Fitch Affirms 'B+' Issuer Default Rating
PETROLEOS DE VENEZUELA: Secures US$1.5 Billion Loan From Banks
* VENEZUELA: Gives Billion-Dollar Boost to Metals Industry
- - - - -
===============================
A N T I G U A & B A R B U D A
===============================
STANFORD INT'L: Investors Lash Out at International Monetary Fund
-----------------------------------------------------------------
Caribbean360.com reports that the Latin America branch of the
Stanford Victims Coalition has blasted the International Monetary
Fund for ignoring requests for Antigua & Barbuda to be blocked
from getting financial assistance because of the role investors
believe the country played in Robert Allen Stanford's US$7 billion
fraud.
According to the report, the IMF has indicated it will provide
US$124 million to the Baldwin Spencer administration. The report
relates that the Executive Board is expected to give the final nod
of approval at a meeting either at month-end or early next month.
The report notes that the Latin American Stanford investors said
the IMF is ridiculing them and has not responded to their letters.
Coalition leader Jaime Escalona, the report relates, said that the
group had written to Managing Director of the IMF, Dominique
Strauss-Khan, and other Executive Directors explaining its
position and yet, the Washington-based institution appeared to be
going ahead with the loan. The report adds that Mr. Escalona
further pressed the IMF to show solidarity with Stanford's victims
and demand that the government of Antigua and Barbuda begin the
immediate restitution of the money that the financier took from
investors.
As reported in the Troubled Company Reporter-Latin America on
October 28, 2009, Caribbean360.com said that Mr. Stanford's
investors are trying to block Antigua and Barbuda from accessing
any funds from the IMF. The report relates that the SVC, through
lawyers from the New York firm Morgenstern & Blue LLC, has written
to members of Congress to get help blocking any IMF loan.
Caribbean360.com added that the SVC wants to prevent Antigua and
Barbuda from getting any money unless it takes steps to compensate
those who lost their money in the fraud.
According to The Dominican Today, Antigua and Barbuda's government
sought support from IMF as the country has been feeling the impact
of the global economic downturn and suffered financial losses and
job layoffs as a result of the fraud scandal surrounding Mr.
Stanford.
About Stanford International Bank
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.
On February 16, 2009, the United States District Court for the
Northern District of Texas, Dallas Division, signed an order
appointing Ralph Janvey as receiver for all the assets and records
of Stanford International Bank, Ltd., Stanford Group Company,
Stanford Capital Management, LLC, Robert Allen Stanford, James M.
Davis and Laura Pendergest-Holt and of all entities they own or
control. The February 16 order, as amended March 12, 2009,
directs the Receiver to, among other things, take control and
possession of and to operate the Receivership Estate, and to
perform all acts necessary to conserve, hold, manage and preserve
the value of the Receivership Estate.
The U.S. Securities and Exchange Commission, on Feb. 17, 2009,
charged before the U.S. District Court in Dallas, Texas, 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.
A criminal case was pursued against him in June 2009 before the
U.S. District Court in Houston, Texas. Mr. Stanford pleaded not
guilty to 21 charges of multi-billion dollar fraud, money-
laundering and obstruction of justice. Assistant Attorney General
Lanny Breuer, as cited by Agence France-Presse News, said in a 57-
page indictment that Mr. Stanford could face up to 250 years in
prison if convicted on all charges. Mr. Stanford surrendered to
U.S. authorities after a warrant was issued for his arrest on the
criminal charges.
The criminal case is U.S. v. Stanford, H-09-342, U.S. District
Court, Southern District of Texas (Houston). The civil case is SEC
v. Stanford International Bank, 3:09-cv-00298-N, U.S. District
Court, Northern District of Texas (Dallas).
* ANTIGUA & BARBUDA: SVC Blasted IMF for Ignoring its Request
-------------------------------------------------------------
Caribbean360.com reports that the Latin America branch of the
Stanford Victims Coalition has blasted the International Monetary
Fund for ignoring requests for Antigua & Barbuda to be blocked
from getting financial assistance because of the role investors
believe the country played in Robert Allen Stanford's US$7 billion
fraud.
According to the report, the IMF has indicated it will provide
US$124 million to the Baldwin Spencer administration. The report
relates that the Executive Board is expected to give the final nod
of approval at a meeting either at month-end or early next month.
The report notes that the Latin American Stanford investors said
the IMF is ridiculing them and has not responded to their letters.
Coalition leader Jaime Escalona, the report relates, said that the
group had written to Managing Director of the IMF, Dominique
Strauss-Khan, and other Executive Directors explaining its
position and yet, the Washington-based institution appeared to be
going ahead with the loan. The report adds that Mr. Escalona
further pressed the IMF to show solidarity with Stanford's victims
and demand that the government of Antigua and Barbuda begin the
immediate restitution of the money that the financier took from
investors.
As reported in the Troubled Company Reporter-Latin America on
October 28, 2009, Caribbean360.com said that Mr. Stanford's
investors are trying to block Antigua and Barbuda from accessing
any funds from the IMF. The report relates that the SVC, through
lawyers from the New York firm Morgenstern & Blue LLC, has written
to members of Congress to get help blocking any IMF loan.
Caribbean360.com added that the SVC wants to prevent Antigua and
Barbuda from getting any money unless it takes steps to compensate
those who lost their money in the fraud.
According to The Dominican Today, Antigua and Barbuda's government
sought support from IMF as the country has been feeling the impact
of the global economic downturn and suffered financial losses and
job layoffs as a result of the fraud scandal surrounding Mr.
Stanford.
About Stanford International Bank
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.
On February 16, 2009, the United States District Court for the
Northern District of Texas, Dallas Division, signed an order
appointing Ralph Janvey as receiver for all the assets and records
of Stanford International Bank, Ltd., Stanford Group Company,
Stanford Capital Management, LLC, Robert Allen Stanford, James M.
Davis and Laura Pendergest-Holt and of all entities they own or
control. The February 16 order, as amended March 12, 2009,
directs the Receiver to, among other things, take control and
possession of and to operate the Receivership Estate, and to
perform all acts necessary to conserve, hold, manage and preserve
the value of the Receivership Estate.
The U.S. Securities and Exchange Commission, on Feb. 17, 2009,
charged before the U.S. District Court in Dallas, Texas, 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.
A criminal case was pursued against him in June 2009 before the
U.S. District Court in Houston, Texas. Mr. Stanford pleaded not
guilty to 21 charges of multi-billion dollar fraud, money-
laundering and obstruction of justice. Assistant Attorney General
Lanny Breuer, as cited by Agence France-Presse News, said in a 57-
page indictment that Mr. Stanford could face up to 250 years in
prison if convicted on all charges. Mr. Stanford surrendered to
U.S. authorities after a warrant was issued for his arrest on the
criminal charges.
The criminal case is U.S. v. Stanford, H-09-342, U.S. District
Court, Southern District of Texas (Houston). The civil case is SEC
v. Stanford International Bank, 3:09-cv-00298-N, U.S. District
Court, Northern District of Texas (Dallas).
=================
A R G E N T I N A
=================
AGRIBEST SA: Asks for Preventive Contest
----------------------------------------
Agribest S.A. asked for preventive contest.
The company stopped making payments last March 26, 2010.
INDUGRAF SA: Creditors' Proofs of Debt Due on June 10
-----------------------------------------------------
Carlos Berger, the court-appointed trustee for Indugraf S.A.'s
reorganization proceedings, will be verifying creditors' proofs of
claim until June 10, 2010.
Mr. Szwarcberg will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 12 in Buenos Aires, with the assistance of Clerk
No. 23, 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.
Creditors will vote to ratify the completed settlement plan
during the assembly on March 3, 2011.
The Trustee can be reached at:
Carlos Berger
Suipacha 1172
Argentina
INDUPROF SRL: Creditors' Proofs of Debt Due on May 14
-----------------------------------------------------
Ariel Marsili, the court-appointed trustee for Induprof S.R.L.'s
bankruptcy proceedings, will be verifying creditors' proofs of
claim until May 14, 2010.
Mr. Marsili will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 19 in Buenos Aires, with the assistance of Clerk
No. 38, 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:
Ariel Marsili
Sarmiento 1582
Argentina
INFORMES COLUMBO: Creditors' Proofs of Debt Due on May 18
---------------------------------------------------------
Jorge David Jalfin, the court-appointed trustee for Informes
Columbo S.R.L.'s bankruptcy proceedings, will be verifying
creditors' proofs of claim until May 18, 2010.
Mr. Jalfin will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 20 in Buenos Aires, with the assistance of Clerk
No. 40, 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:
Jorge David Jalfin
Sarmiento 1452
Argentina
KEY DIGITAL: Requests for Preventive Contest
--------------------------------------------
Key Digital S.R.L. requested for preventive contest.
The company stopped making payments last January 16, 2010.
MUTUAL DE DISTRIBUIDORES: Creditors' Proofs of Debt Due on May 28
-----------------------------------------------------------------
Alejandra Viviana Paz, the court-appointed trustee for Mutual de
Distribuidores Independientes de Venta Directa - Mudivendi's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until May 28, 2010.
Ms. Viviana Paz will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 5 in Buenos Aires, with the assistance of Clerk
No. 9, 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:
Alejandra Viviana Paz
Lavalle 774
Argentina
SIMON BROTHERS: Creditors' Proofs of Debt Due on May 11
-------------------------------------------------------
Salomon S. Wilhelm, the court-appointed trustee for Simon Brothers
S.A.'s bankruptcy proceedings, will be verifying creditors' proofs
of claim until May 11, 2010.
Mr. Wilhelm will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 24 in Buenos Aires, with the assistance of Clerk
No. 47, 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:
Salomon S. Wilhelm
Lavalle 1290
Argentina
TELECOM ARGENTINA: Board OKs P$1.05 Million Cash Dividend
---------------------------------------------------------
Telecom Argentina S.A. disclosed that a P$1,053,287,646 cash
dividend distribution was approved at the Annual General Ordinary
and Extraordinary Shareholder's Meeting held on April 28, 2010.
The payment of the dividend will be made in two installments on
these dates and amounts:
-- May 5, 2010, for the amount of P$ 689,066,685; and
-- December 20, 2010, for the balance of P$ 364,220,961.
The amount to be distributed in the first installment is
equivalent to P$ 0.70 per share or P$3.50 per ADR, prior to
deductions for personal asset tax obligations.
For ADR holders, the Record Date is May 4, 2010 and the Payment
Date is May 12, 2010. Payment will be made through the Depositary
Bank, JP Morgan Chase & Co.
For non-ADR holders, the Record Date is also May 4, 2010, and the
Payment Date is May 5, 2010. For these shareholders, the payment
will be made through the Caja de Valores of the Republic of
Argentina.
The company will deduct from the first installment of the
dividend, the amount paid by the Company for the personal asset
tax (pursuant to unnumbered section following section 25 of Law
No. 23.966 and its amendments) for the fiscal year 2009.
Deductions for personal asset tax payments will not apply to
shareholders who did not own shares or ADRs on December 31, 2009,
or who have reimbursed the Company for such tax obligations.
Due to the time required to determine which non-ADR holders are
subject to such tax, the effective date of the distribution of the
dividends through Caja de Valores S.A. will be made within 10 days
after the payment date.
Telecom Argentina is the parent company of a leading
telecommunications group in Argentina, where it offers directly or
through its controlled subsidiaries local and long distance fixed-
line telephony, cellular, data transmission and Internet services,
among other services. Additionally, through a controlled
subsidiary, the Telecom Group offers cellular services in
Paraguay. The Company commenced operations on November 8, 1990,
upon the Argentine Government's transfer of the telecommunications
system in the northern region of Argentina.
Nortel Inversora S.A., which acquired the majority of the Company
from the Argentine government, holds 54.74% of Telecom Argentina's
common stock. Nortel is a holding company where the common stock
(approximately 68% of capital stock) is owned by Sofora
Telecomunicaciones S.A. Additionally, Nortel capital stock is
comprised of preferred shares that are held by minority
shareholders.
As of April 29, 2010, Telecom Argentina had 984,380,978 shares
outstanding.
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 of January 12, 2010, the company continues to carry Standard
and Poor's "B-" LT Foreign Issuer Credit rating and "B" LT Local
Issuer Credit rating. The company also continues to carry Fitch
ratings' "B" LT FC Issuer default rating; "B+" LT LC Issuer
default rating; and "B" Senior Unsecured Debt rating.
TRANSPORTES TRA-MA: Asks for Preventive Contest
-----------------------------------------------
Transportes Tra-ma S.A. asked for preventive contest.
The company stopped making payments last June 2, 2009.
=============
B E R M U D A
=============
CLICO ENERGY: Creditors' Proofs of Debt Due on May 7
----------------------------------------------------
The creditors of Clico Energy (Bermuda) Limited are required to
file their proofs of debt by May 7, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on April 20, 2010.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
CLICO ENERGY: Members to Receive Wind-Up Report on May 28
---------------------------------------------------------
The members of Clico Energy (Bermuda) Limited will receive, on
May 28, 2010, at 9:30 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company commenced wind-up proceedings on April 20, 2010.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
COPELCO REINSURANCE: Creditors' Proofs of Debt Due on May 19
------------------------------------------------------------
The creditors of Copelco Reinsurance Company, Ltd. are required to
file their proofs of debt by May 19, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on April 30, 2010.
The company's liquidator is:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
COPELCO REINSURANCE: Members to Hear Wind-Up Report on June 8
-------------------------------------------------------------
The members of Copelco Reinsurance Company, Ltd. will receive, on
June 8, 2010, at 9:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company commenced wind-up proceedings on April 30, 2010.
The company's liquidator is:
Jennifer Y. Fraser
Canon's Court, 22 Victoria Street
Hamilton, Bermuda
EDGEN MURRAY: Creditors' Proofs of Debt Due on May 10
-----------------------------------------------------
The creditors of Edgen Murray Limited are required to file their
proofs of debt by May 10, 2010, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on April 21, 2010.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
EDGEN MURRAY: Member to Receive Wind-Up Report on May 26
--------------------------------------------------------
The member of Edgen Murray Limited will receive, on May 26, 2010,
at 9:30 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.
The company commenced wind-up proceedings on April 21, 2010.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
MLMIC INSURANCE: Creditors' Proofs of Debt Due on May 7
-------------------------------------------------------
The creditors of MLMIC Insurance (Bermuda) Ltd. are required to
file their proofs of debt by May 7, 2010, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on April 20, 2010.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
MLMIC INSURANCE: Members to Receive Wind-Up Report on May 28
------------------------------------------------------------
The members of MLMIC Insurance (Bermuda) Ltd. will receive, on
May 28, 2010, at 9:30 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company commenced wind-up proceedings on April 20, 2010.
The company's liquidator is:
Robin J. Mayor
Clarendon House, Church Street
Hamilton, Bermuda
PVAXX LIMITED: Creditors' Proofs of Debt Due on May 17
------------------------------------------------------
The creditors of PVAXX Limited are required to file their proofs
of debt by May 17, 2010, to be included in the company's dividend
distribution.
The company's liquidator is:
Lane Bednash
Valentine & Co.
4 Dancastle Court, 14 Arcadia Avenue
London N3 2HS, England
PVAXX LIMITED: Creditors and Members to Meet on May 24
------------------------------------------------------
The creditors and members of PVAXX Limited will hold their final
general meeting on May 24, 2010, at 12:00 noon, to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Lane Bednash
Valentine & Co.
4 Dancastle Court, 14 Arcadia Avenue
London N3 2HS, England
===========
B R A Z I L
===========
BANCO KDB: Fitch Withdraws Individual Rating at 'E'
---------------------------------------------------
Fitch Ratings has removed the Rating Watch Negative on the ratings
of Banco KDB do Brasil S.A. At the same time, Fitch has affirmed
and withdrawn these ratings as indicated:
-- Support Rating at '2';
-- Long-term foreign and local currency Issuer Default Ratings
at 'BBB'; Outlook Stable; withdrawn;
-- Short-term foreign and local currency IDR at 'F3'; withdrawn;
-- Individual Rating at 'E'; withdrawn;
-- National long-term rating at 'AAA(bra)'; Outlook Stable;
-- National short-term rating at 'F1+(bra)'.
These rating actions reflect the US$60 million capital
contribution in March 2010 when the controlling shareholder
settled KDBbra's capital ratio as per local regulations, showing
its willingness to support the Brazilian subsidiary. The ratio
had been well below the 11% minimum limit since the end of 2008,
having reached 6.7% in September 2009 due to accumulated losses.
So as to temporarily adjust such capital ratio, in December 2009
KDBbra acquired, and linked to the Central Bank of Brazil,
BRL67 million in federal securities, considered as capital for
regulatory purposes.
The IDRs and National Ratings of KDBbra are based on the support
of its controlling shareholder, Korea Development Bank (KDB; IDR
'A+' with a Stable Outlook). The Individual Rating reflects a
still limited franchise, a strong reliance on the parent for
business development, as shown in the recent capitalization
process, and the potential risk involved in its private securities
portfolio. KDB is a development bank owned by the government of
South Korea, which provides full support to KDBbra through a
'solvency guarantee', expressed constitutionally by Article 44 of
the KDB Act. The South Korean government has plans to privatize
KDB by May 2014. Should this occur, Fitch would review the
possible effects on KDB's ratings.
The bank's results have been weak, with a strong loss in 2009,
basically as a result of negative adjustments at market value and
provisioning for losses around BRL50 million for bank credit bills
and receivables investment funds. However, according to the bank,
additional adjustments should be necessary in 2010, still
impacting the result, although in a lower volume.
KDBbra's ratings are linked to its parent's ratings, as well as to
its willingness to support the bank. The Individual Rating would
benefit from higher capitalization and lower exposure to private
securities, which would enable consistent operating results.
KDBbra, established in 2005, is a wholly owned subsidiary of KDB
(assets at US$129 billion and equity at US$14 billion in June
2009), dedicated to treasury activities and to the financing of
South Korean companies in Brazil.
BR MALLS: First Quarter Revenue Up 31.7% to R$106.3 Million
-----------------------------------------------------------
BRMALLS Participacoes S.A. posted results for the first quarter of
2010 (1Q10). BRMALLS has a portfolio of 35 malls, comprising
1,034.9 sq.m of gross leasable area (GLA) and 467.8 sq. m of owned
GLA. The company currently has 5 greenfield projects under
development and 7 expansion projects, which, together, will
increase its total GLA to 1,273.5 sq. m and its owned GLA to 626.2
thousand m^2 by 2013.
All the financial and operational information is in Reais (R$),
and comparisons refer to the first quarter of 2009 (1Q09), except
where otherwise indicated.
The Company adopted in advance the directives of the Brazilian
Accounting Pronouncements Committee (CPC) in the fourth quarter of
2009 (4Q09), pursuant to CVM Resolution 603. The main effects on
the financial statements were:
(a) the straight-lining of base rent and key money;
(b) the appraisal of investment properties at their fair value;
and
(c) recognition of deferred taxes (income tax and social
contribution on net income) related to these effects.
1Q10 Highlights and Subsequent Events
* Net revenues totaled R$106.3 million in 1Q10, 31.7% increase
year-on-year;
* Consolidated NOI reached R$93 million in 1Q10, a 26.6%
increase over 1Q09, when NOI was R$73.5 million. The NOI
Margin for the quarter was 88.8% and same-property NOI grew
by 15.8% in 1Q10;
* EBITDA reached R$87.6 million in 1Q10 an increase of 42.4%
over 1Q09. Adjusted EBITDA grew 42.0% reaching R$88.6
million and its margin presented excellent growth when
compared to 1Q09, expanding from 77.4% to 83.4%;
* Adjusted FFO reached R$60.2 million in 1Q10, up 49.8% over
1Q09 and Adjusted FFO Margin was 56.6%. Our FFO per share
grew 25.0% year-over-year reaching R$0.30 in the quarter;
* Same store sales growth reached 16.2% year-over-year, the
highest in the company's history. This growth was mainly
due to anchor stores' recovery, which presented SSS growth
of 19.5% year-over-year, and to the continuous growth of the
satellite stores' SSS, which grew 15.6% over 1Q09;
* The company deliver excellent leasing spreads in our rent
contracts. In this quarter, it reached our highest ever
renewal leasing spread in the Company's history, 18.3%;
* For the third consecutive quarter the company reached its
highest-ever occupancy rate, for the third quarter in a row,
closing 1Q10 with 98.2% occupancy;
* Construction at Granja Vianna and Sete Lagoas is on schedule
and their total GLA is already 93% and 86% leased,
respectively, as of the end of 1Q10.
About BR Malls Participacoes
Headquartered in Rio de Janeiro, Brazil, BR Malls Participacoes
S.A. -- http://www.brmalls.com.br-- is the largest integrated
shopping mall company in Brazil with a portfolio of 34 malls,
representing 985.2 thousand square meters in total Gross Leasable
Area (GLA) and 429.1 thousand square meters in owned GLA.
* * *
As reported in the Troubled Company Reporter-Latin America on
October 14, 2009, Fitch Ratings has affirmed the ratings of
BRMALLS Participacoes S.A.:
-- Foreign Currency Issuer Default Rating at 'BB-';
-- Local currency IDR at 'BB-';
-- Long-term national scale rating at 'A(Bra)';
-- US$175 million perpetual notes at 'BB-'.
CAMARGO CORREA: Cimpor Unit Could Sell Shares
---------------------------------------------
Camargo Correa Cimentos SA Chief Executive Officer Jose Edison
said the sale of shares of the Brazilian unit of Cimpor-Cimentos
de Portugal SGPS SA is a possibility, Joao Lima at Bloomberg News
reports, citing Jornal de Negocios.
According to the report, Camargo Correa is a shareholder in
Lisbon-based Cimpor. Mr. Edison is a board member at Cimpor.
Camargo Correa SA is one of the largest private industrial
conglomerates in Brazil. The company is a holding company with
interests in cement, engineering and construction, textiles,
footwear and sportswear manufacturing. It also owns non-
controlling equity interests in the energy, transportation
(highway concessions) and steel businesses. During the last
12 months through June 2007, Camargo Correa had net sales of
BRL9.2 billion and EBITDA of BRL1.4 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
November 26, 2009, Fitch Ratings currently rates Camargo and its
special-purpose vehicle CCSA Finance Limited:
-- Foreign currency Issuer Default Rating 'BB';
-- Local currency IDR 'BB';
COMPANHIA SIDERURGICA: JPMorgan Chase Cuts Rating on Stock
----------------------------------------------------------
Alexander Ragir at Bloomberg News reports that Companhia
Siderurgica Nacional S.A. said that JPMorgan Chase & Co. cut its
rating on the stock, saying Brazilian steel price increases will
be limited by foreign competition as a stronger currency lures
imports.
According to the report, citing JPMorgan analysts including
Rodolfo De Angele, Brazilian steelmakers will have less
flexibility for passing on rising raw-materials costs to customers
because importers will compete with domestic metals producers.
The report relates that the bank cut CSN to "underweight" from
"neutral," on May 3, 2010, citing delays in its Casa de Pedra ore
expansion and the stock's valuation.
"We remain cautious on the extent of margin expansion as rising
imports (in flat steel products) are likely to limit price
increases, especially as the Brazilian real has resumed its
appreciation, thereby increasing the appeal of imports," the
report quoted Mr. De Angele as saying. "The main impact should
come from higher coking coal costs that should add to production
costs, but these should be more than offset by higher steel prices
as domestic demand remains strong, allowing room for margin
expansion," he added.
About CSN
Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. (NYSE: SID) -- http://www.csn.com.br/-- produces, sells,
exports and distributes steel products, like hot-dip galvanized
sheets, tin mill products and tinplate. The company also runs its
own iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects. The group also operates in Brazil, Portugal, and the
U.S.
* * *
As of January 12, 2010, the company continues to carry Moody's
Currency LT Debt ratings at Ba1. The company also continues to
carry Standard and Poor's Issuer credit ratings at BB+.
COMPANHIA SIDERURGICA: To Invest US$19.57 Billion Until 2016
------------------------------------------------------------
Companhia Siderurgica Nacional S.A. is planning to invest BRL34
billion (US$19.57 billion) in its operations through 2016, Rogerio
Jelmayer at Dow Jones Newswires reports, citing Chief Executive
Benjamin Steinbruch in an interview by Valor Economico newspaper.
According to the report, Mr. Steinbruch told the newspaper that
about 80% of the planned investments will be allocated in steel
and iron ore area. The report relates that the company is
planning to finance part of its investments with the proceeds of
an initial public offering of shares in its Casa de Pedra iron ore
mine, expected to take place by June 30.
The IPO, the report says, will include CSN's Casa de Pedra iron
ore mining operation, the company's 33% stake in railroad MRS and
the port complex at Itaguai. The report relates that Casa de
Pedra currently produces about 21 million metric tons of iron ore
per year. The mine is undergoing an expansion that will boost
capacity to about 40 million tons by the end of 2010, the report
notes.
Dow Jones Newswires discloses that CSN has planned an IPO for its
primary iron ore mine for many years, but the offer has always
failed to move beyond the planning stages.
About CSN
Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. (NYSE: SID) -- http://www.csn.com.br/-- produces, sells,
exports and distributes steel products, like hot-dip galvanized
sheets, tin mill products and tinplate. The company also runs its
own iron ore, manganese, limestone and dolomite mines and has
strategic investments in railroad companies and power supply
projects. The group also operates in Brazil, Portugal, and the
U.S.
* * *
As of January 12, 2010, the company continues to carry Moody's
Currency LT Debt ratings at Ba1. The company also continues to
carry Standard and Poor's Issuer credit ratings at BB+.
GAFISA SA: First Quarter Profit Jumps 77% to BRL64.8 Million
------------------------------------------------------------
Fabiola Moura and Helder Marinho at Bloomberg News report that
Gafisa SA's first quarter profit jumped 77% to BRL64.8 million
(US$38 million) from BRL36.7 million a year earlier, as the
country's construction industry benefited from a government pledge
to expand low-income housing.
According to the report, net income rose to BRL64.8 million (US$38
million) from BRL36.7 million a year earlier; while net income
adjusted for some items was BRL79.6 million. The figure beat the
average estimate of 74.6 million of five analysts in a Bloomberg
survey.
The report, citing Morgan Stanley Chief Economist Marcelo
Carvalho, relates that Brazil's economy is "turning red hot." The
report notes that Mr. Carvalho forecast a 6.8% growth in Brazil's
gross domestic product this year. The report discloses that
Gafisa said in February that as much as 45% of its BRL5 billion of
projects planned to start this year will fit the government's plan
to build 1 million homes for low-income families.
Bloomberg news notes that the total value of contracts signed for
Gafisa homes in the first quarter increased 53% to BRL1.02
billion.
Gafisa SA, the report says, raised BRL1.06 billion in a secondary
share sale in March, easing investors' concern that it would have
trouble financing expansion. The company will use the funds to
buy land and "seek strategic acquisitions," Chief Executive
Officer Wilson Amaral said in a statement obtained by the news
agency.
About Gafisa SA
Headquartered in Sao Paulo, Brazil and founded in 1954, Gafisa
S.A. is one of the largest fully integrated homebuilders in the
country ranking second in terms of revenues and volumes, and
also one of the most diversified in terms of product offering to
different income levels and geographies, operating in 20
different states. With an estimated market share of 6% in
Brazil, Gafisa had net revenues of BRL1.3 billion in the last 12
months ending on March 31, 2008.
* * *
As reported in the Troubled Company Reporter-Latin America on
December 14, 2009, Moody's has assigned a Ba1 local currency and a
Aa2.br Brazil national scale rating to Gafisa S.A.'s proposed
issue of BRL600 million in secured debentures. At the same time,
Moody's affirmed Gafisa's Ba2/A1.br corporate family ratings. The
outlook for all ratings is negative.
ODEBRECHT FINANCE: To Issue New Perpetual Bonds
-----------------------------------------------
Odebrecht Finance Ltd., a wholly owned subsidiary of builder
Odebrecht S.A., has hired Credit Suisse and Itau Securities to
sell a new dollar-denominated perpetual bond, according to a
person familiar with the deal, Kejal Vyas at Dow Jones Newswires
reports.
According to the report, the new bonds, which will be non-callable
for five years, will refinance the company's outstanding 9.625%
perpetual notes. The report relates that the 144a/RegS bond sale
is expected to be launched after a roadshow with company officials
concludes.
The securities are 'BB' by Standard & Poor's and 'BB+' by Fitch
Ratings.
About Odebrecht
Construtora Norberto Odebrecht SA is a Latin American engineering
and construction company fully owned by the Odebrecht Group, one
of the 10 largest Brazilian private groups. Construtora Norberto
is the world's largest builder of hydroelectric plants, of
sanitary and storm sewers, water treatment and desalination
plants, transmission lines and aqueducts. The Group's main
businesses are heavy engineering and construction based in Rio de
Janeiro, Brazil, and Braskem S.A., its chemicals/petrochemicals
company, based in Sao Paulo, Brazil.
About Odebrecht Finance
Odebrecht Finance Limited is a wholly owned subsidiary of
Construtora Norberto Odebrecht S.A.'s parent company, Odebrecht
S.A.
* * *
As reported in the Troubled Company Reporter-Latin America on
October 12, 2009, Standard & Poor's Ratings Services said that it
assigned its 'BB' rating to the proposed US$300 million senior
unsecured notes issuance by Odebrecht Finance Ltd. due September
2020. The notes are unconditionally and irrevocably guaranteed by
Brazil-based heavy engineering and construction company,
Construtora Norberto Odebrecht S.A. (BB/Stable/--). OFL is a
wholly owned subsidiary of CNO's parent company, Odebrecht S.A.
(brAA-/Stable/--).
ODEBRECHT FINANCE: Fitch Assigns 'BB+' Rating on US$200 Mil. Notes
------------------------------------------------------------------
Fitch Ratings has assigned a 'BB+' rating for the proposed
perpetual US$200 million notes issued by Odebrecht Finance Limited
with call option after five years. OFL is a wholly-owned
subsidiary of Odebrecht S.A., the holding company of Construtora
Norberto Odebrecht S.A. The notes are fully and irrevocably
guaranteed by CNO. The proceeds of the issue will be used for
repayment, in September 2010, of the perpetual notes issued by
Odebrecht Overseas Limited and guaranteed by CNO.
The existing Issuer Default Ratings and ratings assigned by Fitch
to CNO, OOL and OFL are:
Construtora Norberto Odebrecht S.A.
-- Foreign and local currency long-term Issuer Default Ratings
'BB+';
-- Long-term national scale 'AA(bra)';
-- US$200.4 million perpetual notes, guaranteed by CNO, issued
by its full subsidiary and financial vehicle OOL 'BB+'.
Odebrecht Finance Ltd
-- Two 10-year US$200 million senior notes guaranteed by CNO,
issued Oct. 18, 2007, with call option in five years,
maturing October 2017 'BB+';
-- US$200 million senior notes guaranteed by CNO, issued
April 7, 2008, with call option in five years, maturing
October 2017 'BB+';
-- US$200 million senior notes guaranteed by CNO due 2014 'BB+';
-- US$500 million senior notes, guaranteed by CNO, issued Oct.
21, 2009, due September 2020, with call option after five
years 'BB+'.
The Rating Outlook for all the corporate ratings above is Stable.
The ratings reflect CNO's leading position in the engineering and
construction sector in Latin America. The company has significant
expertise and a successful track record of executing and
completing domestic (Brazilian) and international engineering,
procurement and construction infrastructure projects. Recent
performance has been resilient, despite less favorable market
conditions, reflected by growth in revenues and cash flows. The
ratings are also supported by CNO's robust liquidity, adequate
leverage, and strong backlog. The ratings incorporate the risks
associated with CNO's revenue and backlog concentration in
emerging markets and government-sponsored projects, and the
challenge of maintaining and growing its backlog in a more complex
global environment.
Revenues and Backlog Resilient, Brazil Driving Growth:
Despite the challenges from the global crisis to the heavy
construction segment, CNO's net revenues grew 10% in 2009 compared
with 2008. EBITDA margin of 9.7%, was adequate for industry
standards, though well below the high 14% margin reported in 2008.
The company has managed to maintain a growing backlog of
US$20.3 billion at end December 2009, compared to US$18.1 billion
at end December 2008. Brazil's share in the company's backlog has
been increasing consistently, with Brazil accounting for 35% of
the total backlog at end December 2009, compared to 28% at the end
of 2008 and 21% at the end of 2007. The remaining backlog include
projects located in Venezuela with 26%, Angola 12%, Peru 6%;
Colombia 4%; Argentina 4%; Dominican Republic 3%; Libya 2%; United
States 2%; Panama 2%; Cuba 2%; Portugal 1%; and Mozambique 1%.
Going forward, Fitch expects CNO's backlog continue to grow in the
near future due to ongoing and expected Brazilian investment in
Oil & Gas and Infrastructure. The Brazilian Government's
Accelerated Growth Program is expected to partially support these
investments. CNO's businesses should also benefit from Brazil
hosting the World Cup in 2014 and Olympic games in 2016, events
that will generate the need for further infrastructure investments
and that should also help increase Brazil's importance in the
company's backlog and revenues.
International Experience and Prudent Financial Strategy Mitigate
Political Risk:
CNO's exposure and concentration to more volatile emerging market
countries have been partially mitigated by its expertise and
positive track record of operating in these markets, as well as
the strategy of requesting advanced payments from customers. On
average, CNO receives 15% of the total project cost in advance in
the emerging markets it participates. As a result, account
receivables do not exceed customer advances in these markets. In
addition, transfer and convertibility risks are mitigated by the
fact that CNO has significant access to hard currency.
Positive Free Cash Flow, Strong Liquidity and Low Net Leverage:
By funding its working capital requirements with customer
advances, CNO has been able to show recurrent positive free cash
flows (BRL1.1 billion in 2009) and a strong liquidity position.
CNO's cash position of BRL3.1 billion covered 4.8 times its short-
term debt of BRL645 million, 1.3x its total debt and 0.7x its
total adjusted debt (including BRL 1.9 billion of off balance
sheet guarantees) at the end of December 2009. Of its total cash
position, 55% is denominated in foreign currency. Future debt
payments are BRL497 million maturing in the course of 2011,
BRL377 million in 2012, BRL179 million in 2013 and BRL623 million
in 2014 and beyond. A potential pressure to the company's
liquidity will be if there is material cash drain to related
companies in the Odebrecht Group, which has not been the case so
far.
CNO has demonstrated its ability to maintain low net leverage. At
the end of December 2009, total adjusted debt/EBITDA increased to
2.4x, from 1.5x at year-end 2008, while the adjusted net
debt/EBITDA ratio was maintained at a still low 0.6x (0.5x at YE
2008). The increase in total leverage was due to the lower EBITDA
combined with additional debt guarantees on behalf of OFL in 2009.
The low net leverage and high liquidity ratios are considered
appropriate in a highly cyclical and volatile industry such as
heavy construction. Fitch expects the ratio of total adjusted
debt to EBITDA to be below 2.4x at YE 2010, with a declining trend
thereafter. In Fitch's opinion, leverage could increase if the
level of guarantees provided to related companies increase in a
faster pace than EBITDA growth.
Potential Ratings and Outlook Drivers:
The ratings and Outlook can be negatively affected by substantial
reduction of backlog and/or cancellation of works, leading to
significant revenue retraction and losses; factors negatively
affecting the liquidity position; increasing concentration in
higher-risk countries and/or sectors; and increased leverage
driven by potential cash drain or guarantees to related companies.
The company's ratings and Outlook can be positively affected by a
consistent and diversified evolution of backlog of contracts, with
an orientation to investment-grade countries, assuring future
revenue flows; sizeable customer advances exceeding account
receivables; increased revenue flows and EBITDA margins.
ODEBRECHT FINANCE: S&P Assigns 'BB' Rating on $200 Mil. Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'BB'
rating to the proposed $200 million in senior unsecured perpetual
notes to be issued by Odebrecht Finance Ltd. The notes are
unconditionally and irrevocably guaranteed by Brazil-based heavy
engineering and construction company Construtora Norberto
Odebrecht S.A. (BB/Positive/--). OFL is a wholly owned subsidiary
of CNO's parent company, Odebrecht S.A. (national scale: brAA-
/Positive/--).
The group intends to use proceeds of the transaction to improve
its debt profile by reducing debt cost in replacing $200 million
in senior unsecured perpetual notes with similar characteristics
issued by Odebrecht Overseas Ltd., a wholly owned subsidiary of
CNO. The notes will rank equally with CNO's other senior
unsecured indebtedness and pari passu with OFL's existing
$1.1 billion senior unsecured notes, which CNO also guarantees.
The rating on the notes is the same as that on the guarantor
because the notes compare equally with other issuances of CNO's
unsecured debt. The company's secured debt represented less than
15% of its assets -- about 1% -- as of December 2009.
The ratings on CNO reflect the firm's exposure to the competitive,
volatile, and cyclical E&C industry; portfolio, including
significant projects in economically and politically volatile
countries, posing some risks to its operations; and more
aggressive financial policy as it supports ODB's investments in
new businesses. These risks are partly offset by CNO's leading
position in the local E&C industry and its sound and diversified
backlog in terms of geographies and projects; the company's
increasing backlog, despite less favorable market conditions in
late 2008 and early 2009; and healthy balance sheet, characterized
by adequate liquidity, even while supporting material investments
of the Odebrecht Group.
Ratings List
Odebrecht S.A.
Corporate Credit Rating
National Scale brAA-/Positive/--
New Rating
Odebrecht Finance Ltd.
Senior Unsecured
Global Scale BB
=========
C H I L E
=========
CORP GROUP: Decrease on Bond Issues Won't Affect S&P's BB Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said that its ratings and
outlook on Chile-based holding company Corp Group Interhold S.A.
('BB/Stable') are not affected by the company's decision to
decrease its bond issue to $130 million from $150 million.
Proceeds from the issuance are to be applied primarily to finance
part of the January 2010 acquisition of a 20% equity stake in VTR
Global Com S.A. for 167 billion Chilean pesos (about $320 million)
by Corp Rec S.A. (not rated) -- Interhold's minority shareholder
and nonoperating holding company.
The ratings reflect Interhold's heavy reliance on dividends coming
indirectly from its CorpBanca subsidiary, its high double
leverage, and the group's aggressive business expansion and
liquidity management. S&P defines "double leverage" as a holding
company's investment in subsidiaries divided by the holding
company (unconsolidated) shareholders' equity.
===============
C O L O M B I A
===============
BANCO DE COMERCIO: S&P Affirms 'BB+' Long-Term Currency Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'BB+'
long-term foreign currency rating on Banco de Comercio Exterior de
Colombia S.A., the Republic of Colombia's state-owned development
bank. The outlook on the rating remains stable.
"The rating reflects the challenges the bank faces as it continues
to broaden its mandate to support small and midsize enterprises
and microcredits, as well as its dependence on market funding to
fund its lending operations," said Standard & Poor's credit
analyst Joydeep Mukherji. "The bank's good financial performance,
good underwriting standards, and strong management support the
rating."
Standard & Poor's views BANCOLDEX as a government-related entity
with a very important public policy role and a very strong link
with the sovereign.
The Colombia government owns 99.7% of the bank, and the private
sector owns the remaining portion. The bank likely will remain
under almost full governmental control in the future.
The bank plays a key role in meeting the government's objective of
promoting exports, industrial competitiveness, and the growth of
SMEs and microcredits. The government is not involved in the
daily management of BANCOLDEX, but it has strong oversight of the
bank's activities and has administrative mechanisms in place to
monitor performance and respond in a timely manner in periods of
stress. The government does not provide a direct guarantee on the
bank's debts, except on debt incurred from multilateral creditors.
"The stable outlook on the bank reflects the outlook on Colombia,"
said Mr. Mukherji. "As long as the government maintains its
support, the ratings and outlook on the bank should remain at the
same level as those on the government."
BANCO DE COMERCIO: S&P Affirms 'BB+' Long-Term Currency Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services said it affirmed its 'BB+'
long-term foreign currency rating on Banco de Comercio Exterior de
Colombia S.A., the Republic of Colombia's state-owned development
bank. The outlook on the rating remains stable.
"The rating reflects the challenges the bank faces as it continues
to broaden its mandate to support small and midsize enterprises
and microcredits, as well as its dependence on market funding to
fund its lending operations," said Standard & Poor's credit
analyst Joydeep Mukherji. "The bank's good financial performance,
good underwriting standards, and strong management support the
rating."
Standard & Poor's views BANCOLDEX as a government-related entity
with a very important public policy role and a very strong link
with the sovereign.
The Colombia government owns 99.7% of the bank, and the private
sector owns the remaining portion. The bank likely will remain
under almost full governmental control in the future.
The bank plays a key role in meeting the government's objective of
promoting exports, industrial competitiveness, and the growth of
SMEs and microcredits. The government is not involved in the
daily management of BANCOLDEX, but it has strong oversight of the
bank's activities and has administrative mechanisms in place to
monitor performance and respond in a timely manner in periods of
stress. The government does not provide a direct guarantee on the
bank's debts, except on debt incurred from multilateral creditors.
"The stable outlook on the bank reflects the outlook on Colombia,"
said Mr. Mukherji. "As long as the government maintains its
support, the ratings and outlook on the bank should remain at the
same level as those on the government."
====================
E L S A L V A D O R
====================
BANCO AGRICOLA: Fitch Affirms Issuer Default Rating at 'BB+'
------------------------------------------------------------
Fitch Ratings has affirmed Banco Agricola's ratings:
Banco Agricola:
-- Long-term Issuer Default Rating at 'BB+'; Outlook Negative;
-- Short-term IDR at 'B';
-- Individual at 'C/D';
-- Support at '3';
-- National-scale long-term rating at 'AA+(slv)'; Outlook
Stable;
-- National-scale short-term rating at 'F1+(slv)'.
-- National-scale rating for local issues of senior unsecured
debt at 'AA+(slv)';
-- National-scale rating for local issues of senior secured debt
at 'AAA(slv)'.
Agricola's IDR, at 'BB+' is underpinned by its relatively sound
financial condition and is not constrained by El Salvador's
sovereign rating ('BB'). The bank's IDRs and Individual rating
reflect its robust franchise, resilient operating profitability
and improved loss-absorption capacity (capital adequacy and
reserves), but also consider the challenges from the currently
adverse economic conditions.
Further worsening its performance prospects, asset quality metrics
and/or the operating environment, especially if accompanied by
further negative rating actions on the sovereign, could put
negative pressure on Agricola's IDRs and, to a lesser extent, its
Individual rating. At present, downside potential on Agricola's
IDR is limited to 'BB'. In turn, the bank's ability to sustain
its loss absorption capacity and a relatively good financial
performance amidst a challenging environment could prevent a
rating downgrade even if the sovereign rating is eventually
downgraded by one notch. The potential for the bank's Rating
Outlook being revised to Stable is contingent upon the level and
timing at which the sovereign rating stabilizes.
Agricola is El Salvador's largest bank (30% of the system's loans
and deposits at end-2009). Inversiones Financieras Banco Agricola
owns a 94% stake in Agricola, among others. In turn, Bancolombia
directly or indirectly owns over 98% of Agricola. In Fitch's
view, Agricola would look to Bancolombia for support, if it were
required. Although Fitch believes that Bancolombia has a strong
propensity to support Agricola, the 'BB+' IDR of the former
indicates that the probability of support is moderate, which
explains Agricola's support rating at '3'.
=============
J A M A I C A
=============
AIR JAMAICA: Top Management Still in Place
------------------------------------------
There are still no plans to change the top management at Air
Jamaica Limited amid being placed under new ownership on April 30,
2010, RadioJamaica reports.
According to the report, Bruce Nobles is to remain as president of
the entity. The report relates Mr. Nobles said that he has been
asked to stay on in the post. "I was asked to remain for a while
to help the transition and I've agreed to do so," the report
quoted Mr. Nobles as saying.
Meanwhile, the report notes that Mr. Nobles is to chair a series
of meetings this week with Air Jamaica employees. The report
relates that the meetings will be used to discuss the airline's
new modus operandi and outline details of the transition period.
RadioJamaica notes that effective May 1, 2010, Caribbean Airlines
assumed responsibility for the routes which were managed by Air
Jamaica. The report relates that 1,000 of the 1,600 workers whose
positions were made redundant were rehired on short term contracts
for the transition period which is expected to last between six
months to a year.
About Air Jamaica
Headquartered in Kingston, Jamaica, Air Jamaica Limited --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers vacation packages
through Air Jamaica Vacations. The company closed its intra-
island services unit, Air Jamaica Express, in October 2005. The
Jamaican government owned 25% of the company after it went private
in 1994. However, in late 2004, the government assumed full
ownership of the airline after an investor group turned over its
75% stake. The Jamaican government does not plan to own Air
Jamaica permanently.
* * *
As reported in the Troubled Company Reporter-Latin America on
January 27, 2010, Moody's Investors Service changed the ratings
outlook of Air Jamaica Limited to stable. The Corporate Family
and senior unsecured ratings of Air Jamaica are affirmed at Caa1.
The change in outlook mirrors the change of the outlook of the
foreign currency bond rating of The Government of Jamaica to
stable, which occurred on January 22, 2010. The ratings reflect
Jamaica's unconditional and irrevocable guarantee of the rated
debt obligations of Air Jamaica. The foreign currency bond rating
of Jamaica remains Caa1, notwithstanding the January 22, 2010
downgrade of Jamaica's local currency bond rating by Moody's to
Caa2.
As reported in the TCR-LA on November 5, 2009, Standard & Poor's
Ratings Services said that it lowered its long-term corporate
credit rating on Air Jamaica Ltd. to 'CCC' from 'CCC+'. The
outlook is negative.
AIR JAMAICA: President Addresses Statutory Deductions Concerns
--------------------------------------------------------------
Air Jamaica Limited President Bruce Nobles gave workers the
assurance that statutory deductions owed by the airline will be
paid up, RadioJamaica reports. The report relates that trade
unions representing Air Jamaica employees had insisted that the
matter be addressed before the entity is handed over to Caribbean
Airlines on Friday.
According to the report, Mr. Nobles said that steps have been
taken to address all concerns about the deductions. "All
statutory deductions have been paid and are current. The
deductions that are eligible to be used by employees as of this
point have been paid and are current," the report quoted Mr.
Nobles as saying. "There are some additional statutory deductions
that need to be paid for future year, those will be made and we
will specifically identify that and lay that out for the unions,
we agreed to do that," he added.
About Air Jamaica
Headquartered in Kingston, Jamaica, Air Jamaica Limited --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers vacation packages
through Air Jamaica Vacations. The company closed its intra-
island services unit, Air Jamaica Express, in October 2005. The
Jamaican government owned 25% of the company after it went private
in 1994. However, in late 2004, the government assumed full
ownership of the airline after an investor group turned over its
75% stake. The Jamaican government does not plan to own Air
Jamaica permanently.
* * *
As reported in the Troubled Company Reporter-Latin America on
January 27, 2010, Moody's Investors Service changed the ratings
outlook of Air Jamaica Limited to stable. The Corporate Family
and senior unsecured ratings of Air Jamaica are affirmed at Caa1.
The change in outlook mirrors the change of the outlook of the
foreign currency bond rating of The Government of Jamaica to
stable, which occurred on January 22, 2010. The ratings reflect
Jamaica's unconditional and irrevocable guarantee of the rated
debt obligations of Air Jamaica. The foreign currency bond rating
of Jamaica remains Caa1, notwithstanding the January 22, 2010
downgrade of Jamaica's local currency bond rating by Moody's to
Caa2.
As reported in the TCR-LA on November 5, 2009, Standard & Poor's
Ratings Services said that it lowered its long-term corporate
credit rating on Air Jamaica Ltd. to 'CCC' from 'CCC+'. The
outlook is negative.
CASH PLUS: Investors Rush Liquidator's Office
---------------------------------------------
Scores of Cash Plus Limited investors tried to beat the deadline
for the submission of claims at the New Kingston offices of the
court-appointed liquidator on April 30, 2010, RadioJamaica
reports.
According to the report, there was a huge turn out of claimants
who came armed with information on monies they invested in the
scheme. The report relates that the total number of claims
received has not yet been tabulated.
RadioJamaica says that employees of the Trustee in Bankruptcy will
begin the process of sifting through the documents to determine
which of the claims are valid.
As reported in the Troubled Company Reporter-Latin America on
May 3, 2010, RadioJamaica said that the deadline for the
submission of claims for Cash Plus investors was extended March to
accommodate persons who had not yet presented claims to the court-
appointed liquidator Hugh Wildman. According to the report, a
notice from Mr. Wildman said that persons who placed money in Cash
Plus should complete a Proof of Debt Form and provide copies of
contracts as well as valid identification and their Tax
Registration Number. The report related that the information
should be sent to the Office of the Trustee in Bankruptcy situated
at 52 to 60 Grenada Crescent in New Kingston.
About Cash Plus
Cash Plus Limited is an investment club in Jamaica. It collapsed
in 2007 after the Financial Services Commission moved to regulate
its operations. The company is a financial arm of the Cash Plus
Group of Companies, a business conglomerate established in 2002 by
mortgage banker Carlos Hill. The company offers its participants
the opportunity to participate in the group's ventures which
include mergers and numerous acquisitions.
In April 2008, the Supreme Court of Jamaica placed Cash Plus in
receivership. Cash Plus admitted that it wouldn't be able to pay
its lenders until April 14, 2008. The firm has 40,000 lenders
with loans totaling J$4 billion. Cash Plus was unable to repay
its investors. The Financial Services Commission said it was
informed by the attorney acting on behalf of Cash Plus that the
investment club lacked the funds to start the repayment of the
principal and interest owing to its investors.
PricewaterhouseCoopers' accountant Kevin Bandoian was appointed as
joint receiver-manager for Cash Plus.
SUGAR COMPANY OF JAMAICA: Int'l Firms Want to Invest in Factories
-----------------------------------------------------------------
Aubyn Hill at Jamaica Observer reports that government officials
are saying that more high-profile international companies are
lining up to invest in Sugar Company of Jamaica Holdings Limited's
factories that are now up for divestment. "We have very big names
interested in our Frome, Monymusk and Bernard Lodge businesses,"
the report quoted SCJ Chief Executive Officer Aubyn Hill as
saying. "These are serious investors; some of these are the
biggest players in the world," Mr. Hill added.
According to the report, Mr. Hill said that in addition to Tate
and Lyle and Eridania, which have already given commitments, the
other big names have shown interest in owning the factories, and
meetings were held with representatives of one party as late as
last week.
"People outside Jamaica are seeing the sugar industry as a viable
prospect," Mr. Hill said, the report relates. The interested
companies originated from the US, Europe and Asia and covered "the
spectrum of investors," he added.
Mr. Hill, the report notes, did not divulged the names of the
interested parties. The report relates Mr. Hill said that a cut-
off date for the interested companies to officially submit
expressions of interest is May 24, after which the divestment team
will make its recommendation to Cabinet for a decision.
About SCJ
The Sugar Company of Jamaica Limited, a.k.a. SCJ, was formed in
November 1993 by a consortium made up of J. Wray & Nephew
Limited, Manufacturers Investments Limited and Booker Tate
Limited. The three companies each held 17% equity in SCJ, with
the remaining 49% being held by the government of Jamaica. In
1998, the government became the sole shareholder of SCJ by
acquiring the interests of the members of the consortium. Its
stated goal was to maximize efficiency, productivity and
profitability of the three sugar factories, within three years.
The principal activities of the company are the cultivation of
cane and the manufacture and sale of sugar and molasses.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 22, 2009, the Jamaica Gleaner reported that Mr. Tufton said
that if a new deal is not inked soon for the divestment of SCJ's
factories, the public will be called on again to plug a projected
US$4.2 billion hole -- representing a US$2 billion operational
loss, and bank penalties -- apparently from continuous hefty
overdrafts. The loss was incurred by the SCJ's four factories
during the 2008/2009 season. The Gleaner related the enterprise
has a US$21-billion debt and losses totaling more than US$14
billion since 2005.
===========
M E X I C O
===========
FINANCIERA INDEPENDENCIA: S&P Affirms 'BB-' Counterparty Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' global scale
counterparty credit and senior unsecured debt ratings on Mexico-
based consumer lender Financiera Independencia S.A.B. de C.V.
SOFOM E.N.R. S&P also affirmed the national scale counterparty
credit ratings at 'mxA-/mxA-2'. The outlook remains negative.
"The ratings affirmation is based on S&P's expectation that
Financiera Independencia will roll over its current rolling
forward expiring Sept. 30, 2010) to a new maturity date --
March 30, 2015. This will hedge the company's foreign exchange
exposure until its $200 million senior unsecured notes mature,"
said Standard & Poor's credit analyst Arturo Sanchez. "S&P
believes this will eliminate any risk of a severe devaluation in
the Mexican peso and will better preserve the company's core
earnings and capital."
The ratings continue to reflect pressures on the firm's asset
quality, which has resulted in lower profitability than in
previous years, and its concentrated funding structure (which has
shown improvements with its note issuance). The ratings gain
support from the company's adequate adjusted capitalization and
good geographic and loan portfolio diversification. The recent
acquisition of Finsol S.A. de C.V. SOFOM E.N.R. (not rated), a
Mexican microfinance company, has no impact on Financiera
Independencia's ratings.
The negative outlook reflects pressures on the company's asset
quality and profitability, which could cause deterioration in its
financial profile. The ratings could be pressure by any of a
number of factors, including:
* A further deterioration in asset quality, with nonperforming
loans plus net charge-offs at more than 30% over the next few
quarters;
* A decline in profitability and adjusted capitalization;
* Leverage increasing beyond S&P's expectations;
* Market debt increasing over the next 12 months following the
notes issuance; or
* The impact of foreign exchange exposure not mitigated as S&P has
described.
"S&P could revise the outlook to stable, if the company can
stabilize its current asset quality trend over the next few
quarters and maintain its profits and adjusted capitalization,"
Mr. Sanchez added.
====================
P U E R T O R I C O
====================
FIRSTBANK PUERTO RICO: Wins Foreclosure on 92-Unit Miami Project
----------------------------------------------------------------
Agence France-Presse reports that FirstBank Puerto Rico won a
US$3.1 million foreclosure lawsuit over a stalled 92-unit project
in southern Miami-Dade County.
According to the report, citing Miami-Dade County Circuit Court
records, the bank won the case against R&E at Palm Vista II based
on a US$2.5 million outstanding mortgage, plus interest and fees.
The report relates that the mortgage was originally for US$7.9
million in 2007.
The report notes that R&E received approval from Miami-Dade County
to build 54 apartment units and 38 townhome units under the
project name JAC Homes on an agricultural site in the county's
Princeton area. The report says the property is on the east side
of Southwest 129th Avenue, a block north of Coconut Palm Drive
(Southwest 248th Street).
APF discloses that construction on JAC Homes started in late 2007,
but was not completed. FirstBank filed the foreclosure in July
2009.
The property is slated for online auction on June 18, the report
adds.
About FirstBank Puerto Rico
FirstBank Puerto Rico is a full-service bank. The bak accepts
deposits, make loans and provides other servies for the public.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 29, 2010, Standard & Poor's Ratings Services said it placed
its 'B' long-term counterparty rating on FirstBank Puerto Rico on
CreditWatch with negative implications.
=================
V E N E Z U E L A
=================
SIDERURGICA DEL TURBIO: Fitch Affirms 'B+' Issuer Default Rating
----------------------------------------------------------------
Fitch Ratings has affirmed the ratings of Siderurgica del Turbio,
S.A.:
-- Foreign currency Issuer Default Rating at 'B+';
-- Local currency IDR at 'B+';
-- US$100 million unsecured notes due 2016 issued by Sidetur
Finance B.V., a wholly owned subsidiary of Sidetur at 'B+'
RR4;
-- National scale rating at 'A+(ven)';
-- National short-term rating at F1(VEN).
The Rating Outlook is Negative.
Sidetur's Negative Outlook reflects the challenging political and
macroeconomic conditions in Venezuela. The company's cash flow
from operations is expected to come under pressure during 2010 due
to electricity rationing and a new exchange regime. Should the
political and macroeconomic conditions continue to deteriorate and
further erode Sidetur's profitability, the ratings could be
downgraded.
The rating affirmation is supported by the company's conservative
debt management policy, comfortable liquidity, and leading market
position as a domestic producer of rebar with 44.2% market share
in 2009. Sidetur had a total debt-to-EBITDA ratio of 0.9 times,
FFO adjusted leverage ratio of 1.3x and FFO fixed charge coverage
of 4.4x for FYE09, strong for its rating category.
Energy Rationing To Hurt Sales Volumes; Leverage To Remain Low:
Sidetur's revenues and EBITDA are expected to fall as a result of
lower sales volumes to around US$534 million and US$87 million in
FYE10 from US$647 million and US$119 million in FYE09,
respectively. The primary driver of lower volumes is the
compulsory energy rationing in Venezuela. In spite of this
decline, the company's leverage should remain low with a total-
debt-to-EBITDA ratio at around 1.2x, and under 1.0x on a net basis
for the year. Sidetur does not have integrated power generation
capability, other than a diesel generator for emergency use that
can only generate enough power to maintain the heat in the furnace
and keep core computer systems and crane magnets operating.
Sound Liquidity Profile:
Sidetur's liquidity profile was comfortable for the year-end with
cash to short-term debt coverage of 3.0x and manageable debt
maturity schedule of US$5 million a year until 2016. As of
Dec. 31, 2009, the company held US$68.8 million of cash and
marketable securities, a significant reduction on US$149 million
held in FYE08. US$7.6 million of the latest cash position was
restricted cash, which guarantees a quote of capital and interest
of the bonds issued by Sidetur. The company's 1Q'10 short-term
debt to total debt ratio remains low at 0.3x, and it also has
access to additional undrawn credit lines for the next year with
banks, totalling US$50 million.
Raw Material Prices To Rise Sharply:
Sidetur is also faced with pressure on profit margins from higher
raw material prices following the Bolivar devaluation in January
2010. Under Venezuela's dual official exchange rate system, the
US$ exchange rate for priority imports such as food, medicine and
other essential goods was set at VEF2.60/US$1.00, while the rate
for other foreign exchange transactions was set at
VEF4.30/US$1.00. The VEF4.30 rate affects Sidetur's raw material
input of hot briquetted iron and the VEF 2.6 rate affects
Sidetur's electrodes and spare parts.
Construction Activity Contraction Expected In 2010:
The company ended FYE09 with revenues equivalent to
US$647 million, up 6.8% on FY08's US$606 million. This increase
reflects the level of construction activity in Venezuela during
2009, but represents a significant slowdown on revenue growth from
2006-2008, which averaged over 21% year-on-year. Negative sales
growth of around 15-20% is expected in 2010 as a result of the
slowdown in the Venezuelan construction sector combined with the
compulsory reduction of energy consumption. This expectation has
played out in the company's 1Q'10 revenues of US$110.9 million
which show a 22% reduction on 1Q'09 revenues of US$141.7 million.
However, the majority of this revenue decrease was due to the
stoppage at Sidetur's Caracas rolling mill for maintenance and
upgrades for five weeks.
Profit Margins Under Pressure:
Sidetur's EBITDA declined to US$119 million in FYE09, compared to
US$ 142million in FYE08, with the EBITDA margin declining to 18.5%
from 23.4%, respectively. This margin erosion was due to
increased production costs stemming from high inflation which
could not be fully passed on as a result of price controls, and
rising salary costs that are given semi-annually. Inflation in
Venezuela was 29% on average in 2009 and is expected to accelerate
at 31% on average in 2010. Sidetur has recorded decreasing EBITDA
margins since 2007 due to the price regulations on local rebar
sales, which accounted for 45% of total sales in FYE09. The
company strategy to combat this is to concentrate on increasing
product sales that have not yet been imposed with price
regulations, along with promoting additional efficiencies in the
production process.
Potential Rating And Outlook Drivers:
Sidetur has an aggressive dividend policy that has resulted in
negative free cash flow since 2008, as calculated by Fitch. If
this aggressive dividend policy continues, it could damage the
company's current liquidity cushion and lead to a ratings
downgrade. Sovereign-related risks associated with rebar price
controls and the dual foreign currency exchange regime, as well as
the risks of operating in a small market driven by construction
spending will remain key drivers for Sidetur's ratings. There is
also ever-present nationalization event risk.
PETROLEOS DE VENEZUELA: Secures US$1.5 Billion Loan From Banks
--------------------------------------------------------------
Petroleos de Venezuela has received a US$1.5 billion line of
credit from China Development Bank and Portugal's Banco Espirito
Santo, Dan Molinski at Dow Jones Newswires reports.
According to the report, the facility is a three-year amortizing
trade-related term loan priced at 450 basis points over Libor,
with a nine-month grace period. The report relates that PDVSA
President Rafael Ramirez indicated that the loan was being
arranged. At the time, the report notes, Mr. Ramirez said a
separate line of credit was also being worked out, but declined to
provide further details.
About PDVSA
Petroleos de Venezuela -- http://www.pdvsa.com/-- is Venezuela's
state oil company in charge of the development of the petroleum,
petrochemical, and coal industry, as well as planning,
coordinating, supervising, and controlling the operational
activities of its divisions, both in Venezuela and abroad.
* * *
As of March 8, 2010, the company continues to carry Moody's "Ba1"
LC Curr Issuer rating. The company also continues to carry
Standard and Poor's "B+" LT Issuer credit ratings.
* VENEZUELA: Gives Billion-Dollar Boost to Metals Industry
----------------------------------------------------------
Venezuelan President Hugo Chavez plans to invest nearly a billion
dollars in a state-run consortium of 15 aluminum, iron and steel
producers mired in financial crisis for months, Caribbean Net News
reports.
According to the report, in all, some 933 million dollars will be
pumped into the ailing Corporacion Venezolana de Guayana over the
next two years. The report relates that worker complaints of
unpaid wages and government negligence have been growing for
months at iron and aluminum makers Carbonorca, Venalum, Bauxilum
and Alcasa, and at the Sidor steel mills, all of which were
nationalized by President Chavez in 2008.
The report notes that factory production has also dropped from
government-mandated power rationing, amid a crippling national
energy crisis.
* * *
According to Moody's Investors Service, Venezuela continues to
carry a B2 foreign currency rating and a B1 local currency rating
with stable outlook.
***********
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, Marites O. Claro, Joy A. Agravente, Rousel Elaine C.
Tumanda, Valerie C. Udtuhan, Frauline S. Abangan, and Peter A.
Chapman, Editors.
Copyright 2010. All rights reserved. ISSN 1529-2746.
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Information contained herein is obtained from sources believed to
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