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/raid1/www/Hosts/bankrupt/TCRLA_Public/101129.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, November 29, 2010, Vol. 11, No. 235 Headlines B R A Z I L BANCO MAXIMA: Moody's Assigns 'E+' Bank Financial Strength Rating PETROLEO BRASILEIRO: Ecuador to Pay 'Adequate' Price for Seizure TRANSMISSORA ALIANCA: Moody's Assigns Ratings on Amortizing Bonds C A Y M A N I S L A N D S ANSON CAPITAL: Shareholders' Final Meeting Set for December 10 CAMPBELL MAC: Members' Final Meeting Set for Today CAPITAL MAC: Members' Final Meeting Set for Today CIBC ASSET: Shareholder to Receive Wind-Up Report on Dec. 10 CIBC GLOBAL: Shareholder to Receive Wind-Up Report on Dec. 10 EFG ORA: Shareholders' Final Meeting Set for December 10 GOLDEN HUMMINGBIRDS: Shareholders' Final Meeting Set for Nov. 30 JWM MACRO: Members' Final Meeting Set for Today KANTERVALE LIMITED: Members' Final Meeting Set for November 30 KNIGHTSBRIDGE INVESTMENTS: Members' Meeting Set for November 30 MANHATTAN OCEAN: Shareholders' Final Meeting Set for November 30 MANILLA LIMITED: Shareholders' Final Meeting Set for December 10 MARATHON REAL: Shareholder to Receive Wind-Up Report on Nov. 30 MODULUS INTERNATIONAL: Shareholders' Meeting Set for December 16 PLATINUM INVESTMENT: Members' Final Meeting Set for November 30 RICHMOND COMPANY: Shareholders' Final Meeting Set for November 30 SIDNEY AIRCRAFT: Shareholders' Final Meeting Set for December 10 TREATY OAK: Shareholders' Final Meeting Set for November 30 WIN ABSOLUTE: Shareholders Receive Wind-Up Report WIN ABSOLUTE: Shareholders Receive Wind-Up Report C H I L E COMPANIA MINERA: Owner to Sell Assets to Avoid Bankruptcy J A M A I C A AIR JAMAICA: Government Extends Focus Aviation's Contract KSAC: Fails to Pay Workers' Salaries; Audit of Books Called M E X I C O CABLEMAS SA: S&P Withdraws 'BB+' Corporate Credit Rating URBI DESARROLLOS: S&P Affirms 'B+' Corporate Credit Ratings P U E R T O R I C O FIRST BANCORP: Fitch Downgrades Issuer Default Rating to 'CC' VAQUERIA EL VERDOR: Case Summary & 5 Largest Unsecured Creditors X X X X X X X X * BOND PRICING: For the Week November 22 to November 26, 2010 - - - - - =========== B R A Z I L =========== BANCO MAXIMA: Moody's Assigns 'E+' Bank Financial Strength Rating ----------------------------------------------------------------- Moody's Investors Service assigned a bank financial strength rating of E+ to Banco Maxima S.A. At the same time, Moody's assigned to the bank global local- and foreign-currency deposit ratings of B2 and Not Prime, long- and short-term, respectively, and Brazilian national scale deposit ratings of Baa3.br and BR-3. All ratings have a stable outlook. These ratings were assigned to Banco Maxima S.A.: -- Bank financial strength rating: E+, stable outlook -- Global local-currency deposit ratings: B2 and Not Prime, stable outlook -- Foreign-currency deposit ratings: B2 and Not Prime, stable outlook -- Brazilian national scale deposit ratings: Baa3.br and BR-3, stable outlook Ratings Rationale The E+ BFSR for Maxima reflects the bank's modest franchise and market positioning in the niche segment of wholesale banking. Moody's said the rating also derives from moderate profitability indicators, which are supported by revenues from Maxima's traditional business of asset management and brokerage services. Despite this one focus, Maxima has varied its franchise significantly over the years as management sought to diversify earnings by entering markets of high-yield products, such as consumer financing and payroll lending. Recently, the bank divested these other business lines as its small size posed a challenge to sustaining healthy growth. The bank's funding structure has limited diversification in its composition, with a significant part of its resources obtained as time deposits guaranteed by the deposit insurance fund (DPGEs). Moody's noted that the low variety of funding sources constrains the rating because it results in a more expensive cost structure for the bank, given the insurance component of DPGEs. The high concentration of DPGEs also denotes the bank's more restrict access to raise funds with local investors through conventional time deposit instruments. Moody's also identified the bank's ability to generate revenues from its core competencies as a challenge, particularly because these segments, brokerage services and asset management, face increasing competition. These risks are incorporated into the BFSR of E+ as well. Moody's acknowledged that Maxima's capital position, with a BIS ratio of 20.53% in June 2010, provides cushion against potential increases in non-performing loans. In addition, the bank has a relatively small loan book -- roughly 23% of total assets -- which also mitigates pressures against capital. This combination of low leverage and adequate capital is positive for the rating, added Moody's. The global local-currency deposit rating of B2 derives from Maxima's BFSR of E+, which translates into a baseline credit assessment of B2. According to Moody's methodology, because of Maxima's irrelevant participation in the market for retail deposits, the rating agency does not ascribe any probability of systemic support to the bank's deposit ratings. Banco Maxima S.A. is headquartered in Rio de Janeiro, Brazil. As of June 2010, the bank had total assets of approximately R$454 million (US$252 million) and equity of R$92.6 million (US$51.4 million). PETROLEO BRASILEIRO: Ecuador to Pay 'Adequate' Price for Seizure ---------------------------------------------------------------- PetroEcuador, Ecuador's state-owned oil producer, seized Petroleo Brasileiro SA's local concessions, Ecuador TLC SA, after Brazil's state-controlled oil company failed to reach an agreement on revised oil contracts, Bloomberg News reports. According to Bloomberg, Ecuador Minister of Non-Renewable Natural Resources Wilson Pastor told reporters that the country will pay an "adequate" price for Petrobras's assets. Bloomberg relates that the oil company operated the so-called Block 18 and Palo Azul oil concessions in the Amazon rainforest. "We have terminated the contract and we will enter the liquidation process under terms established by the law, fix an adequate price and payment form," the report quoted Mr. Pastor as saying. Ecuador's government estimates it may have to pay Petrobras US$163 million for field investments, Mr. Pastor said, Bloomberg notes. Ecuador on Nov. 23 said it planned to cancel oil and natural-gas concessions of four companies that refused to switch to service contracts from production-sharing accords, Bloomberg relates. Based in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. -- Petrobras (Brazilian Petroleum Corporation) -- explores for oil and gas and it produces, refines, purchases, and transports oil and gas products. The Company has proved reserves of about 14.1 billion barrels of oil equivalent and operates 16 refineries, an extensive pipeline network, and more than 8,000 gas stations. TRANSMISSORA ALIANCA: Moody's Assigns Ratings on Amortizing Bonds ----------------------------------------------------------------- Moody's America Latina Ltda. assigned a Baa3 global scale rating and Aa1.br rating on the Brazilian national scale to the up to BRL670 million senior amortizing unsecured debentures to be issued in three series with maturities ranging between five and seven years. Moody's also assigned a Ba1 global scale rating and Aa2.br rating on the Brazilian national scale to the 7-year amortizing BRL180 million subordinated debentures. The debentures will be issued by Transmissora Alian‡a de Energia Eletrica S.A. At the same time, Moody's affirmed TAESA's Baa3 global scale issuer rating and Aa1.br rating on the Brazilian national scale. The rating outlook is stable for all ratings. Ratings Rationale Proceeds of the BRL850 million debentures will be for anticipating payment of the existing long-term debt with BNDES in the same amount. The rationale behind this financial decision is management's stated intention to proceed with a corporate restructure of the holding company TAESA and its operating subsidiaries, which will lead to fiscal gains. Most of these fiscal gains will come from the amortization of around BRL1.2 billion of goodwill derived from the incorporation of Transmissora do Atlantico de Energia Eletrica S.A by TAESA. To implement this corporate restructure, TAESA would need the formal approval of BNDES to comply with the existing contractual clauses embedded in certain debt instruments of its subsidiaries TSN -- Transmissora Sudeste Nordeste S.A. e Novatrans Energia S.A. As negotiations between the company's management and BNDES over the past months have not led to an agreement, TAESA decided to anticipate the payment of the BNDES debt. As a result, TAESA is tapping the local capital markets to execute this strategy. The Baa3 issuer rating reflects TAESA's strong consolidated credit metrics for the rating category, which are supported by the stable and predictable cash flows that result from its operating subsidiaries' long-term concession contracts for the transmission of electricity. The rating also considers the evolving regulatory framework for transmission companies in Brazil, which is supportive and well developed but also relatively new and not fully tested. The lack of good visibility with respect to the current capital expansion program constrains the rating. Specifically, the company's new shareholders may implement a more ambitious program that negatively impacts leverage and liquidity. The rating already considers the current structural subordination of debt at the holding company level to the approximately BRL1.0 billion of debt currently outstanding at the level of its operating subsidiaries. Moody's views the regulatory framework for transmission companies in Brazil as well developed and highly supportive but the track record is limited and some procedures are still untested, such as the indemnification of non-depreciated assets upon the non-renewal or termination of an existing concession. The secure and stable nature of the transmission segment stems from the Permitted Annual Revenues (RAP), which are based on fixed capacity payments throughout the concession period that have provisions for automatic annual adjustments for inflation. TAESA operates eight transmission networks under long-term concessions expiring between 2030 and 2038. The company largely benefits from a portfolio consisting of concessions primarily granted prior to 2006 whose tariffs are not subject to periodic reviews. On the other hand, the RAP for these concessions is scheduled to step down 50% starting in 2016. TAESA has strong credit metrics for the rating category in light of the very attractive features of most of the concessions contracts of its operating subsidiaries. Leverage as measured by the Net Debt to Regulatory Asset Value ratio averaged 54.2% from 2007 through 2009, while the interest coverage ratio was 2.6x, and Funds From Operations to Net Debt was 27% in the same period. These ratios are partly tempered by low Retained Cash Flow to capital expenditures ratio of just 0.37% which results from several business acquisitions completed during the last three years, including the BRL562 million acquisition for ETEO in 2008, as well as the relatively high dividend payout ratio registered during this period. Under normal circumstances, Moody's expects a gradual and consistent improvement in TAESA's capital structure given its very stable and predictable cash flow and assuming capital expenditures are restricted to maintenance expenditures only which is tempered by an expected high dividend pay-out ratio of over 80%. Moody's believes that the lack of clarity with regard to expansion capital expenditures, new concessions or possible acquisitions represents potential changes to the above-outlined scenario. The company's stable rating outlook factors in the continued execution of its business plan. Moody's expects that TAESA will prudently manage its capital structure in a way that finances capital expenditures and dividends in a manner that keeps the company's credit metrics compatible with the Baa3 rating category. Also incorporated into this view is Moody's expectation that TAESA will maintain an adequate debt maturity profile and a solid liquidity position. The potential corporate restructure of TAESA and its operating companies, to be formally approved by the Brazilian electricity regulator ANEEL, coupled with a clear understanding of the company's strategic objectives, including its capital investment plans, could lead to a positive rating action. The ratings could be downgraded if there is deterioration in the company's liquidity position or if credit metrics deteriorate so that RCF to Capital expenditures drops below 1.0x and the ICR falls below 2.0x for an extended period of time. The last rating action for TAESA was on June 11, 2010, when Moody's assigned a Baa3 global scale and Aa1.br rating on the Brazilian national scale to five-year BRL600 million senior amortizing unsecured debentures. At the same time, Moody's affirmed the Baa3 global scale issuer rating and Aa1.br issuer rating on the Brazilian national scale to TAESA's Issuer Rating. The outlook for all ratings was changed to stable from negative. TAESA is a holding company that operates 3,712 km high voltage transmission lines through five subsidiaries: Transmissora Sudeste Nordeste -- TSN, Novatrans Energia, Empresa de Transmissao Alto Uruguai -- ETAU, Empresa de Transmissao de Energia do Oeste -- ETEO and Brasnorte. These operating companies operate through long-term concessions granted and regulated by ANEEL. In the last twelve months ended September 30, 2010, TAESA posted consolidated net sales of BRL739 million (US$400 million) and net profit of BRL301 million (US$163 million) as reported at CVM. =========================== C A Y M A N I S L A N D S =========================== ANSON CAPITAL: Shareholders' Final Meeting Set for December 10 -------------------------------------------------------------- The shareholders of Anson Capital Ltd. will hold their final meeting on December 10, 2010, at 1:30 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street George Town Grand Cayman KY1-9002 Cayman Islands CAMPBELL MAC: Members' Final Meeting Set for Today -------------------------------------------------- The members of Campbell Mac 2 Ltd. will hold their final meeting today, November 29, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Beverly Mathias c/o Citco Trustees (Cayman) Limited P.O. Box 31106, Grand Cayman KY1-1205 Cayman Islands CAPITAL MAC: Members' Final Meeting Set for Today -------------------------------------------------- The members of Capital Mac Limited will hold their final meeting today, November 29, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Beverly Mathias c/o Citco Trustees (Cayman) Limited P.O. Box 31106, Grand Cayman KY1-1205 Cayman Islands CIBC ASSET: Shareholder to Receive Wind-Up Report on Dec. 10 ------------------------------------------------------------ The sole shareholder of CIBC Asset Management (Cayman) Limited will receive on December 10, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694, Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 CIBC GLOBAL: Shareholder to Receive Wind-Up Report on Dec. 10 ------------------------------------------------------------- The sole shareholder of CIBC Global Asset Management (Cayman) Limited will receive on December 10, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694, Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 EFG ORA: Shareholders' Final Meeting Set for December 10 -------------------------------------------------------- The shareholders of EFG Ora Funding Limited II will hold their final meeting on December 10, 2010, at 1:45 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers SPV Limited Walker House, 87 Mary Street George Town Grand Cayman KY1-9002 Cayman Islands GOLDEN HUMMINGBIRDS: Shareholders' Final Meeting Set for Nov. 30 ---------------------------------------------------------------- The shareholders of Golden Hummingbirds Limited will hold their final meeting on November 30, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town, Grand Cayman Caymans Islands JWM MACRO: Members' Final Meeting Set for Today ----------------------------------------------- The members of JWM Macro Mac 35 Ltd. will hold their final meeting today, November 29, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Beverly Mathias c/o Citco Trustees (Cayman) Limited P.O. Box 31106, Grand Cayman KY1-1205 Cayman Islands KANTERVALE LIMITED: Members' Final Meeting Set for November 30 -------------------------------------------------------------- The members of Kantervale Limited will hold their final meeting on November 30, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town, Grand Cayman Caymans Islands KNIGHTSBRIDGE INVESTMENTS: Members' Meeting Set for November 30 --------------------------------------------------------------- The members of Knightsbridge Investments Holdings Limited will hold their final meeting on November 30, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town, Grand Cayman Caymans Islands MANHATTAN OCEAN: Shareholders' Final Meeting Set for November 30 ---------------------------------------------------------------- The shareholders of Manhattan Ocean Holdings Limited will hold their final meeting on November 30, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town, Grand Cayman Caymans Islands MANILLA LIMITED: Shareholders' Final Meeting Set for December 10 ---------------------------------------------------------------- The shareholders of Manilla Limited will hold their final meeting on December 10, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984, Grand Cayman KY1-1104 MARATHON REAL: Shareholder to Receive Wind-Up Report on Nov. 30 --------------------------------------------------------------- The sole shareholder of Marathon Real Estate Finance Fund, Ltd. will receive on November 30, 2010, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier Michael Bunn Telephone: (345) 815-1848 Facsimile: (345) 949-9877 MODULUS INTERNATIONAL: Shareholders' Meeting Set for December 16 ---------------------------------------------------------------- The shareholders of Modulus International Limited will hold their final meeting on December 16, 2010, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David A.K. Walker Adam Keenan Telephone: (345) 949 8743 Facsimile: (345) 945 4237 PO Box 258, Grand Cayman KY1-1104 Cayman Islands PLATINUM INVESTMENT: Members' Final Meeting Set for November 30 --------------------------------------------------------------- The members of Platinum Investment Limited will hold their final meeting on November 30, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town, Grand Cayman Caymans Islands RICHMOND COMPANY: Shareholders' Final Meeting Set for November 30 ----------------------------------------------------------------- The shareholders of Richmond Company Limited will hold their final meeting on November 30, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town, Grand Cayman Caymans Islands SIDNEY AIRCRAFT: Shareholders' Final Meeting Set for December 10 ---------------------------------------------------------------- The shareholders of Sidney Aircraft Limited will hold their final meeting on December 10, 2010, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984, Grand Cayman KY1-1104 TREATY OAK: Shareholders' Final Meeting Set for November 30 ----------------------------------------------------------- The shareholders of Treaty Oak Ironwood, Ltd. will hold their final meeting on November 30, 2010, at 3:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: K.D. Blake c/o Robert Arthur Telephone: 345-815-2637 Facsimile: 345-949-7164 P.O. Box 493, Grand Cayman KY1-1106 Cayman Islands Telephone: 345-949-4800 Facsimile: 345-949-7164 WIN ABSOLUTE: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Win Absolute Return Master Fund Limited received on November 26, 2010, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Anishinder Grewal WiN Asset Management LLP City Point 1 Ropemaker Street London EC2Y 9HT United Kingdom WIN ABSOLUTE: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Win Absolute Return Fund Limited received on November 26, 2010, the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Anishinder Grewal WiN Asset Management LLP City Point 1 Ropemaker Street London EC2Y 9HT United Kingdom ========= C H I L E ========= COMPANIA MINERA: Owner to Sell Assets to Avoid Bankruptcy --------------------------------------------------------- Gideon Long at BBC News reports that Compania Minera San Esteban Primera has agreed to sell its assets to avoid bankruptcy. BBC News relates that creditors gave the company 15 months to repay its debts. According to BBC News, six weeks on from the dramatic rescue of the 33 Chilean miners trapped in its mine, the San Jose mine has remained shut. The report notes that some of the money from the sale will be used as severance pay for the more than 300 miners and plant workers who lost their jobs after the collapse. In addition, the Chilean government is trying to recoup the money that it spent on the rescue operation, BBC News says. The report discloses that is thought to have cost between US$10 million and US$20 million (GBP12.5 million). The rest of the money will be used to pay off the company's other debts, which are estimated at around US$10 million, BBC News relates. Compania Minera San Esteban Primera is engaged in the production of both copper and gold concentrates. ============= J A M A I C A ============= AIR JAMAICA: Government Extends Focus Aviation's Contract --------------------------------------------------------- Cabinet has extended the contract of United States-based Focus Aviation, the firm that is trying to sell two Air Jamaica Limited aircraft, RadioJamaica reports. The report relates that Focus Aviation has been in negotiations for several months to sell the two Airbus A320 aircraft to G.A. Telesis. The aircraft are being offered for US$18.5 million. According to RadioJamaica, Information Minister Daryl Vaz said that the sale will help to finalize the divestment of Air Jamaica. "Air Jamaica has been pursuing the sale of these two aircrafts since the first quarter of 2009 with its 2009 business plan. Subsequently, a divestment agreement was brokered with Caribbean Airlines, which has indicated its intention to acquire a Boeing fleet which resulted in Air Jamaica Legacy Limited continuing to pursue the sale of the aircrafts. This forms an integral part of the divestment of the airline," the report quoted Mr. Vaz as saying. RadioJamaica discloses that Prime Minister Bruce Golding had said the government was trying to sell two aircraft owned by Air Jamaica to help meet the airline's tax obligations to the U.S. government. 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. As reported in the Troubled Company Reporter-Latin America on June 23, 2010, Trinidad and Tobago Caribbean Airline on May 1, 2010, acquired Air Jamaica for US$50 million and operated six Air Jamaica aircraft and eight of its routes. Jamaica got a 16% stake in the merged operation, with CAL owning 84%. According to a TCRLA report on June 29, 2009, RadioJamaica News said the Jamaican government indicated it will name a buyer for cash-strapped Air Jamaica. Radio Jamaica related the airline has been hemorrhaging over US$150 million per annum and the government has had to foot the massive bill. In addition, Radio Jamaica said, Air Jamaica currently has over US$600 million in loans outstanding. * * * As of August 18, 2010, the airline continues to carry Moody's "B3" long-term, long-term corporate family, and senior unsecured debt ratings. KSAC: Fails to Pay Workers' Salaries; Audit of Books Called ----------------------------------------------------------- RadioJamaica reports that more alarm is being raised about the state of affairs at the Kingston and St Andrew Corporation (KSAC). According to RadioJamaica, reports are surfacing that several employees of the Municipal Council are in arrears with various companies, because funds from their salaries were not paid over after being deducted by the Council. RadioJamaica notes that Kevin Taylor, Councillor for the Duhaney Park Division, first raised the issue of a cash strapped KSAC on November 22, 2010. Mr. Taylor, the report relates, called for an audit of the books and the intervention of the Contractor General. RadioJamaica discloses that Desmond McKenzie, Mayor of Kingston and KSAC Chairman, has brushed off the calls accusing Mr. Taylor of playing politics with the financial affairs of the KSAC. However, the report notes, Helene Davis-Whyte, General Secretary of the Jamaica Association of Local Government Officers, which represents the workers, said several KSAC employees have been facing problems because payments are not being made on their behalf. "Sometime early last year, we began getting complaints for employees in the KSAC who indicated that their personal deductions had not been paid over for months to the extent that they were being paid higher interest on loans that they had (and) their mortgages were running into arrears. We can't say that there is anything untoward, but certainly, there is cause for concern," RadioJamaica quoted Ms. Davis-Whyte as saying. KSAC has fallen off badly from the financial strength it had in previous years, she added. According to Ms. Davis-Whyte, the KSAC was the model authority in years gone by, but now something is seriously wrong, RadioJamaica adds. The Kingston and St. Andrew Corporation is an amalgamation of the two Parishes: Kingston and St. Andrew. Kingston was established in 1692 after the destruction of Port Royal. The Parish of Kingston is entirely urban, while ST. Andrew consists of urban and rural settlements. The two Parishes were amalgamated in 1923 for the purpose of Civic Administration. =========== M E X I C O =========== CABLEMAS SA: S&P Withdraws 'BB+' Corporate Credit Rating -------------------------------------------------------- Standard & Poor's Ratings Services said that it withdrew its 'BB+' global corporate credit rating and its 'mxA+' national scale rating on Cablemas S.A. de C.V at the company's request. At the same time, S&P withdrew the 'BB+' senior unsecured rating and '3' recovery rating on the issuer's US$175 million guaranteed senior notes, following the prepayment of the company's outstanding rated senior notes, in accordance to the notes optional redemption terms. URBI DESARROLLOS: S&P Affirms 'B+' Corporate Credit Ratings ----------------------------------------------------------- Standard & Poor's Ratings Services said that it affirmed its ratings, including the 'B+' global scale and 'mxBBB' Mexican national scale corporate credit ratings, on Mexican homebuilder Urbi Desarrollos Urbanos S.A.B. de C.V. The outlook is stable. "Urbi's aggressive financial policy, accounting practices, and marketing strategies limit the ratings," said Standard & Poor's credit analyst Laura Martinez. The ratings also reflect the company's high working-capital requirements to support its growth rates, increasing competition, the concentration of mortgage origination in Infonavit and Fovissste, and a degree of political risk inherent to these institutions. Urbi's operating efficiency and flexibility, high EBITDA margins, adequate liquidity, its position as one of the largest homebuilders in Mexico, its leadership in the northern Mexican states, and increasing geographical presence somewhat offset these factors. Urbi's financial performance has been in line with S&P's expectations during 2010. Urbi has shown a revenue and volume growth of 11.8% and 19.6% on a comparable basis (INIF 14). This has required significant working capital investments which have led to a negative free operating cash flow of around MXN950 million during the first nine months of the year (which includes investments for MXN650 million in Housing Projects in Progress), mainly financed with additional external funding, leading to some weakness in the company's financial metrics. For the past 12 months ended Sept. 30, 2010, the company posted a total debt-to- EBITDA, EBITDA interest coverage, and funds from operations to- total-debt ratios of 2.6x, 3.0x, and 21.1%, respectively, compared with 2.1x, 3.0x, and 23.7% for the same period a year ago. For year-end 2010, S&P expects the housing related activities business division, specifically the sale of land in macroprojects and "Casa Capital Plus," its program for pre-owned homes will support a neutral to slightly positive FOCF generation for Urbi. S&P also expect the company will post a total debt/EBITDA ratio of 2.0x. For the full year, S&P also estimates a total investment of MXN2.5 billion in working capital needs, which includes a MXN1.2 billion investment in Projects in Progress. Urbi recently implemented this business strategy to support its growth plans in the following years, which consists of the integration of projects that require investment in working capital to continue its development. This strategy should provide Urbi higher returns on investments than other business opportunities while taking advantage of its liquidity position. During 2010, the company has integrated four Projects in Progress, and expects to continue making significant investments in this strategy during the next few years. In 2011, Urbi expects to post a 15% revenue growth, which will continue to require intense working capital investments. However, S&P believes the company will maintain a total debt-to-EBITDA ratio under 3.0x. Urbi's liquidity is adequate. As of Sept. 30, 2010, the company held MXN5.7 billion in cash, from which MXN268 million is restricted, comparing favorably with short-term debt of US$1.7 billion that is mainly composed of bridge loans and credit lines. S&P also anticipate a negative FOCF generation of around MXN500 million in 2011. During the first quarter of the year, Urbi refinanced a significant portion of its short-term debt with the resources obtained at the placement of a US$300 million bond due in 2020. As a result, the company's indebtedness profile has improved because it has extended the average maturity of its debt from 2.6 years to 6.5 years. Urbi has sufficient covenant headroom established under its senior unsecured bonds. The 'B+' rating on Urbi's US$150 million senior unsecured notes maturing in 2016 is the same as the long-term corporate credit rating on the company. The recovery rating of '3' indicates S&P's expectation of a meaningful recovery (50% to 70%) on the Mexican recovery scale in the event of a payment default. The stable outlook reflects S&P's expectation that Urbi will continue to show strong cash in hand balance to support its working capital investments while maintaining a debt leverage ratio below 3.0x. S&P could raise the ratings if S&P see sustained evidence of a more moderate financial policy. An increase in management's risk tolerance or an important deterioration in the company's key financial ratios could lead to a negative rating action. ==================== P U E R T O R I C O ==================== FIRST BANCORP: Fitch Downgrades Issuer Default Rating to 'CC' ------------------------------------------------------------- Fitch Ratings has removed from Rating Watch Negative and downgraded the long-term Issuer Default Ratings of First BanCorp and its main subsidiary, Firstbank Puerto Rico to 'CC'. Fitch's rating actions are mainly predicated on the company's publicly disclosed capital plans and how these are viewed under Fitch's rating criteria and definitions. These actions do not take into consideration any nonpublic information. FBP announced a series of initiatives to bolster its balance sheet. These mainly entail improving the common equity component of its overall capitalization. FBP's capital strategies encompass three actions: 1) the conversion of the company's US$550 million perpetual preferred stock which was completed on Aug. 30, 2010; 2) raising additional common stock of up to US$500 million, which is presently ongoing; and 3) the conversion of the U.S. Treasury's Capital Purchase Program preferred shares, which is contingent upon the raising the additional equity. Taken together, and if successful, FBP estimates that pro forma tangible common equity ratio will increase to 10%. The rating actions primarily reflects Fitch's view that the capital strategies First Bancorp has pursued are necessitated by its weakened financial condition and reflective of heightened credit risk compared to historical performance. While the conversion of preferred stock into common serves to improve tangible common ratios, coupled with the U.S. Treasury's agreement to convert its CPP investment into common upon additional outside equity raises, is indicative of an institution which requires external support in order to remain viable. As such, under Fitch's Individual Rating definitions and scale, this is consistent with an Individual Rating of 'E', which indicates a bank with very serious problems, which either requires or is likely to require external support. Further, as Fitch noted in its press release dated June 25, 2010, when all of FBP's ratings were placed on Rating Watch Negative, any event that would be viewed by Fitch as providing support above and beyond that which has been provided to others in order for FBP to continue to operate, Fitch will deem this a failure under its criteria. If FBP is successful in recapitalizing itself, Fitch recognizes that this would be a positive development for the institution as it would provide more absorption for potential losses. Moreover, FBP has materially reduced its balance sheet by US$2.8 billion from year-end 2009, which serves to further improve the company's balance sheet. Moreover, the improved balance sheet strengthens the company's tangible common equity position, which provides the company cushion to absorb losses due to the weakened real estate conditions in Puerto Rico and South Florida as well as challenging macro conditions in Puerto Rico. Even without the additional equity raise, FBP has already improved its tangible common equity ratio to 5.21% for 3Q'10 from 2.57% at 2Q'10, through the aforementioned conversion of preferred stock. Fitch recognizes that FBP continues to comply with the Consent Order with new minimum capital requirements to be achieved overtime of Leverage of 8%, a Tier 1 Risk Based Capital of 10%, and Total RBC of 12%. Fitch's rating actions are the result of a focused review of Fitch's 'Master Global Financial Institutions Criteria' dated Aug. 16, 2010. This review concentrated in particular on capitalization. In performing its analysis of Recovery Ratings, Fitch employed some assumptions that were more conservative than those outlined in its criteria 'Recovery Ratings for Financial Institutions' dated Dec. 30, 2009. Some of the recovery rates for certain loan categories were assumed to be lower to reflect the current distressed credit environment. Fitch has downgraded and removed from Rating Watch Negative these ratings: First BanCorp -- Long-term IDR to 'CC' from 'B-'; -- Individual to 'E' from 'D/E'. FirstBank Puerto Rico -- Long-term IDR to 'CC' from 'B-'; -- Long-term deposit obligations to 'CCC/RR3' from 'B+/RR2'; -- Individual to 'E' from 'D/E'; -- Short-term IDR to 'C' from 'B'; -- Short-term Deposits at 'C' from 'B'. These ratings remain unchanged: First BanCorp -- Short-term IDR 'C'; -- Support '5'; -- Support floor 'NF'. FirstBank Puerto Rico -- Support '5'; -- Support floor 'NF'. VAQUERIA EL VERDOR: Case Summary & 5 Largest Unsecured Creditors ---------------------------------------------------------------- Debtor: Vaqueria El Verdor, Inc. Carr. 119 Km 10.5 Bo Cienaga, Camuy PR P.O. Box 1319 SABANA HOYOS Arecibo, PR 00688 Tel: (787) 846-4658 Bankruptcy Case No.: 10-11011 Chapter 11 Petition Date: November 24, 2010 Court: U.S. Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Winston Vidal-Gambaro, Esq. WINSTON VIDAL LAW OFFICE P.O. Box 193673 San Juan, PR 00919-3673 Tel: (787) 751-2864 Fax: (787) 763-6114 E-mail: wvidal@prtc.net Estimated Assets: US$1,000,001 to US$10,000,000 Estimated Debts: US$1,000,001 to US$10,000,000 A list of the Company's five largest unsecured creditors filed together with the petition is available for free at http://bankrupt.com/misc/prb10-11011.pdf The petition was signed by Jose Gabriel Cordero Jimenez, president. =============== X X X X X X X X =============== * BOND PRICING: For the Week November 22 to November 26, 2010 ------------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- ARGENT-DIS 5.83 12/31/2033 ARS 43.65 ARGENT-PAR 1.18 12/31/2038 ARS 90 ARGENT-DIS 7.82 12/31/2033 EUR 77.25 ARGENT-DIS 7.82 12/31/2033 EUR 76.25 ARGENT-DIS 4.33 12/31/2033 JPY 42 ARGENT-PAR&GDP 0.45 12/31/2038 JPY 8 BODEN 2014 2 9/30/2014 ARS 39 BOGAR 2018 2 2/4/2018 ARS 23.45 PRO12 2 1/3/2016 ARS 130.3 CAYMAN ISLAND ------------- BANCO BPI (CI) 4.15 11/14/2035 EUR 49.679 BANIF FIN LTD 3 12/31/2019 EUR 61.625 BCP FINANCE BANK 5.01 3/31/2024 EUR 66.812 BCP FINANCE BANK 5.31 12/10/2023 EUR 69.543 BCP FINANCE CO 4.239 EUR 63.678571 BCP FINANCE CO 5.543 EUR 66.033817 BES FINANCE LTD 4.5 EUR 73.875 BES FINANCE LTD 5.58 EUR 62.185295 BES FINANCE LTD 6.984 2/7/2035 EUR 63.44015 DUBAI HLDNG COMM 6 2/1/2017 GBP 73.88 EFG ORA FUNDING 1.7 10/29/2014 EUR 68.69 ESFG INTERNATION 5.753 EUR 67.916667 PUBMASTER FIN 5.943 12/30/2024 GBP 74.94 PUBMASTER FIN 8.44 6/30/2025 GBP 129.64756 PUNCH TAVERNS 4.767 6/30/2033 GBP 75.35 CHILE ----- AGUAS NUEVAS 3.4 5/15/2012 CLP 0.1949 ESVAL S.A. 3.8 7/15/2012 CLP 49.942973 MASISA 4.25 10/15/2012 CLP 38.402885 PUERTO RICO ----------- PUERTO RICO CONS 6.5 4/1/2016 USD 49.7 VENEZUELA --------- PETROLEOS DE VEN 4.9 10/28/2014 USD 62.615863 PETROLEOS DE VEN 5 10/28/2015 USD 56.711132 PETROLEOS DE VEN 5.125 10/28/2016 USD 55.070706 PETROLEOS DE VEN 5.25 4/12/2017 USD 56.727034 PETROLEOS DE VEN 5.375 4/12/2027 USD 45.609648 PETROLEOS DE VEN 5.5 4/12/2037 USD 44.539935 PETROLEOS DE VEN 8.5 11/2/2017 USD 66.986436 VENEZUELA 5.75 2/26/2016 USD 70.75 VENEZUELA 6 12/9/2020 USD 57 VENEZUELA 7 3/31/2038 USD 55.125 VENEZUELA 7 12/1/2018 USD 63 VENEZUELA 7 3/31/2038 USD 55.5 VENEZUELA 7.65 4/21/2025 USD 59.25 VENEZUELA 7.75 10/13/2019 USD 65.75 VENEZUELA 8.25 10/13/2024 USD 63 VENEZUELA 9 5/7/2023 USD 66.25 VENEZUELA 9.25 9/15/2027 USD 72.5 VENEZUELA 9.25 5/7/2028 USD 66.25 VENEZUELA 9.25 9/15/2027 USD 73.26 VENZOD - 189000 9.375 1/13/2034 USD 66.75 *********** 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. Agravante, Rousel Elaine C. Tumanda, Valerie C. Udtuhan, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2010. 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 * * *