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/raid1/www/Hosts/bankrupt/TCRLA_Public/110909.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 Friday, September 9, 2011, Vol. 12, No. 179 Headlines A R G E N T I N A BANCO DE LA PROVINCIA: S&P Gives 'B' Counterparty Credit Rating ELECTRONICA MEGATONE: Moody's Gives 'B3' Rating to Proposed Notes SANCOR COOPERATIVA: Moody's Withdraws 'B2' Currency Rating B E R M U D A DIGICEL GROUP: Claro Deal Hit With Another Requirement B R A Z I L MINERVA OVERSEAS: Moody's Upgrades Corp. Family Rating to 'B2' C A Y M A N I S L A N D S ALPINA ASSET: Members' Final Meeting Set for September 19 AVANGARD RUSSIA: Shareholders' Final Meeting Set for September 16 BAY HARBOUR: Shareholder to Receive Wind-Up Report on Sept. 16 CHIRIN ASIA: Shareholders' Final Meeting Set for September 16 FALLING WATER: Members Receive Wind-Up Report GENEVA HOLDINGS: Shareholders' Final Meeting Set for September 19 HESS BRASIL: Members' Final Meeting Set for September 16 HESS (PHILIPPINES-SC 41): Members' Final Meeting Set for Sept. 16 KME CAYMAN: Shareholders' Final Meeting Set for September 16 LANTERNE ARRAN: Shareholders' Final Meeting Set for September 14 MADISONGREY FUND: Shareholder to Hear Wind-Up Report on Sept. 20 MARINILLA INVESTMENTS: Members Receive Wind-Up Report MISTRAL INVESTMENT: Members Receive Wind-Up Report MSR ASIA: Members' Final Meeting Set for September 12 TROPHY HUNTER: Shareholder to Receive Wind-Up Report on Sept. 16 J A M A L C O JAMALCO: Jamaica Government Gets 2 Offers for Refinery Stake WINDALCO: Plant Reopening Delay Causes Government US$63-Mil. P E R U CONTINENTAL TRUSTEE: S&P Raises Rating on Synthetic Deal to 'BB+' - - - - - ================= A R G E N T I N A ================= BANCO DE LA PROVINCIA: S&P Gives 'B' Counterparty Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' long-term counterparty credit rating to Argentina-based Banco de la Provincia de Buenos Aires (BPBA). The outlook is stable. The province of Buenos Aires fully owns BPBA. "The rating on BPBA reflects the risk inherent for banks operating in Argentina and BPBA's subpar performance in the domestic market mainly due to its low levels of efficiency and profitability, and insufficient capitalization. In our view, the bank's significant franchise value, ranking as the second-largest institution in the Argentine financial system, somewhat mitigates these weaknesses," S&P stated. In accordance with S&P's criteria on rating government related entities, S&P's view of an 'almost certain' likelihood of extraordinary support from the province of Buenos Aires is based on its assessment of BPBA's: "Very important" role in promoting the development of certain economic segments in the province. The bank is an important instrument of provincial public policy, serving as a fiscal agent to the province, and a significant player in the Argentine financial system; and "Very strong" link between the bank and the province, given the bank's ownership structure. The province provides a direct guarantee for the bank's liabilities. "We believe that the close ties between the government and the country's financial system directly affects BPBA's business prospects. Given uncertainties about the Argentine economy, we believe this link constrains the rating," S&P related. ELECTRONICA MEGATONE: Moody's Gives 'B3' Rating to Proposed Notes ----------------------------------------------------------------- Moody's Latin America assigned a B3 global scale rating and an A2.ar Argentina National Scale Rating to Electronica Megatone's (EM) proposed ARS50 million local bond issuance. At the same time, Moody's affirmed EM's corporate family rating of B3 on its global scale and A2.ar on the Argentina national scale rating. Proceeds from the notes will be used principally for EM's working capital needs, to refinance outstanding short term debt and for general corporate purposes. The outlook for all ratings is stable. Ratings Rationale The B3 and A2.ar ratings are supported by the company's position as one of the main dedicated consumer electronics and appliance retailers in Argentina, operating under the Megatone brand name. The ratings reflect EM's diversified product mix, low adjusted leverage and its well-established relationships with suppliers. The ratings also consider EM's solid position in selling recognized brand name home appliances and solid credit metrics for its rating category. The ratings also incorporate EM's strong revenue growth and improved operating margins. EM's key credit negatives include EM's retail finance model, with significant credit exposure to consumer loans extended through Megatone's own financing source. Moody's notes that EM's consumer credit segment has been the principal earnings generator and has been funded by the securitization market. Moody's will closely monitor the company's ability to continue to access the market for securitization financing, as well as its strategic plans for the Musimundo retail chain, after obtaining Musimundo's brand name licensing. EM's relatively small scale, limited geographic diversification and the competitive environment also constrain the ratings. The stable ratings outlook reflects Moody's expectation that EM will continue to successfully implement its business model, thus allowing the retailer to maintain strong credit metrics for its rating category. The stable outlook assumes that EM will successfully uphold its market position, even in light of the challenging competitive environment. Finally, the outlook reflects Moody's expectations that EM will be able to maintain adequate access to the securitization market, even in more adverse market conditions. EM ratings upgrade could result from increased size and geographic diversification, along with an improving business environment in Argentina leading to an improving retail business segment. Quantitatively, upward momentum could result if EM's total adjusted debt to EBITDA is sustained below 1.5 times (2.7 times as of last twelve months ended May 31, 2011) and operating margins of above 6% (4.4% as of last twelve months ended May 31, 2011). In addition, reducing its reliance on the securitization market would support a stronger credit profile. Negative pressure on the ratings or outlook could result from the inability to maintain good liquidity and access to the securitization funding vehicle. In addition, greater than expected loan delinquencies, the impact of a potential downturn in the Argentinean economy on the availability of consumer loans and the inability to successfully integrate the Musimundo retail chain could cause negative pressure on ratings. Quantitatively, a downgrade could result from a sustained drop in EM's EBIT margin to below 10% or a significant increase in leverage, with total adjusted debt to EBITDA of above 3.5 times. Indications of a weakening market share in the domestic retail market could also drive negative pressure. Headquartered in Santa Fe province, Argentina, EM is a leading regional appliance retailer operating 89 stores across 12 provinces. With total revenues of US$305 million as of the last twelve months ended May 31, 2011, is one of the three retailers licensing "Megatone" brand name in Argentina. SANCOR COOPERATIVA: Moody's Withdraws 'B2' Currency Rating ---------------------------------------------------------- Moody's Latin America has withdrawn the B2 global-local currency and A1.ar Argentine national scale insurance financial strength ratings of Sancor Cooperativa de Seguros Limitada, and its workers' compensation subsidiary, Prevencion ART. Ratings Rationale Moody's has withdrawn the ratings for its own business reasons. Moody's insurance financial strength ratings are opinions of the ability of insurance companies to repay punctually senior policyholder claims and obligations. ============= B E R M U D A ============= DIGICEL GROUP: Claro Deal Hit With Another Requirement ------------------------------------------------------ RJR News reports that the deal for Digicel Group to take over Claro Jamaica has now been hit by a requirement. Claro Jamaica must give up the signal on which it operates in El Salvador for the deal to push through, according to RJR News. RJR News notes that the El Salvador competition watchdog, Superintendencia de Competencia imposed the condition because it said, as it stands, the deal would restrict competition in that country's mobile market. Claro is required, therefore, to return the spectrum so that it can be offered to new players in El Salvador, RJR News says. RJR News notes that the announcement comes as Digicel Group awaits approval for Claro Jamaica to take over its El Salvador and Honduras businesses before it consummates its takeover of Claro in Jamaica. As reported in the Troubled Company Reporter-Latin America on Sept. 2, 2011, The Gleaner related that the Jamaican government has approved Digicel Group's acquisition of Claro Jamaica. Prime Minister Bruce Golding, however, said that the approval is on the proviso that Digicel Group continues to operate two separate networks, in what is meant to be a check on the market leader's dominance, according to The Gleaner. The Gleaner noted that Digicel Group wanted to integrate the operations into a single network, but Prime Minister Golding rejected that plan. About Digicel Group Digicel Group Limited -- http://www.digicelgroup.com/-- is renowned for competitive rates, unbeatable coverage, superior customer care, a wide variety of products and services and state- of-the-art handsets. By offering innovative wireless services and community support, Digicel Group has become a leading brand across its 31 markets worldwide. Digicel is incorporated in Bermuda and now has operations in 31 markets worldwide. Its Caribbean and Central American markets comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda, Bonaire, the British Virgin Islands, the Cayman Islands, Curacao, Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana, Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago and Turks & Caicos. The Caribbean company also has coverage in St. Martin and St. Barts. Digicel Pacific comprises Fiji, Papua New Guinea, Samoa, Tonga and Vanuatu. * * * As of September 8, 2011, the company continues to carry Moody's "Caa1" senior unsecured debt rating. =========== B R A Z I L =========== MINERVA OVERSEAS: Moody's Upgrades Corp. Family Rating to 'B2' -------------------------------------------------------------- Moody's Investors Service upgraded to B2 from B3 the Corporate Family Rating and senior unsecured ratings of Minerva S.A. The outlook is stable. Ratings upgraded are: Minerva S.A. - Corporate Family Rating: to B2 from B3/Under Review for possible upgrade Issuer: Minerva Overseas Ltd. - US$35 million 9.500% guaranteed senior unsecured bonds due 02/01/2017: to B2 from B3/Under Review for possible upgrade Issuer: Minerva Overseas II Ltd. - US$374 million 10.875% guaranteed senior unsecured bonds due 11/15/2019: to B2 from B3/Under Review for possible upgrade Ratings Rationale "The upgrade to B2 reflects the company's track record of stable operating margins, despite the difficult environment for the sector over the last several months, with pressure in cattle prices and continued FX appreciation, factors that negatively impacted the overall meat processing sector in Brazil", said Moody's analyst Marianna Waltz. "The B2 rating also recognizes the deleveraging process that is taking place in 2011, with the issuance of R$190 million in convertible debentures, treated as 100% equity by Moody's". Although the final amount was less than the original R$300 million the company intended to raise, the positive impact on the balance sheet is still meaningful. Proceeds of the offering will be used to pay down R$160 million of debt, with the balance going toward the remaining installments related to the Frigorifico PUL's acquisition. Based on Moody's estimates, leverage, as measured by Total Debt to EBITDA, should approach 5x by the end of 2011 (all ratios according to Moody's standard definitions and adjustments), which is commensurate with one of the ratings triggers outlined for a possible positive rating action. Moody's has also incorporated in its assumptions that Minerva will only make modest acquisitions over the near term, that it will continue to successfully execute the strategies of its beef trading operations for delivering above average margins for a more commodity oriented beef processor, and that it will turn free cash flow positive in 2012 on a sustainable basis. Moody's is also considering the improvement in Minerva's liquidity levels, as evidenced by the company's unwritten policy of keeping a minimum R$500 million in cash, and the lower reliance in export markets as compared to previous years. After the investments that have been made in the new facilities in the states of Rondonia and Minas Gerais, and in the Frigorifico PUL in Uruguay, Moody's is assuming that the company will prudently manage CAPEX and working capital levels, aiming to at least sustain the recent balance sheet improvements. Minerva should also benefit from the larger participation of value added products sales, where higher margins can be earned. Specially, Moody's assumes that this segment share in total revenues, including Minerva Dawn Farms and the refrigerated products, could reach 25% within the next two years, as compared to approximately 16% currently. Offsetting some of the positive attributes supporting the B2 rating is Minerva's relatively small size compared to local and global peers, based on consolidated net revenues, it's still high leverage, as well as the sales concentration on live cattle, beef and beef related products and the volatile nature of the protein business. The stable outlook reflects Moody's view that the company will be able to sustain its operating margins, make further progress in reducing its financial leverage and maintain liquidity at current levels. The ratings could suffer downward pressure if Minerva's liquidity deteriorated, if market conditions cause operating margins to decline sharply or if total adjusted debt to EBITDA fails to remain at around 5.0x on a sustainable basis. The company's inability to keep CFO/Net Debt above 10% or deliver positive free cash flow in 2012 could also add to negative ratings or outlook pressure. While unlikely over the near term, Minerva's ratings could be upgraded if Minerva makes additional progress in deleveraging its balance sheet and is able to deliver greater diversification of revenue and cash flow streams to continue. Upwards pressure would also depend on the company's ability to reduce adjusted total debt to EBITDA ratio to below 4.5x and increase EBITA to Interest Expense to above 1.5x and CFO to Net Debt to above 15%. The principal methodology used in rating Minerva was the Protein and Agriculture rating methodology published on September 3, 2009. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found on Moody's website. Minerva, headquartered in Barretos, Sao Paulo, is one of Brazil's leaders in the production and sale of fresh beef and live cattle. With net revenues of BRL3.6 billion (approximately US$2.2 billion) at LTM June, 2011 and installed slaughtering capacity of 10.480 heads of cattle per day, Minerva is the third largest Brazilian exporter of beef and beef byproducts and has ten own beef production facilities in Brazil as well as presence in Paraguay and Uruguay. =========================== C A Y M A N I S L A N D S =========================== ALPINA ASSET: Members' Final Meeting Set for September 19 --------------------------------------------------------- The members of Alpina Asset Management Ltd. will hold their final meeting on September 19, 2011, 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 Sargison c/o Maples and Calder, Attorneys-at-law P.O. Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands AVANGARD RUSSIA: Shareholders' Final Meeting Set for September 16 ----------------------------------------------------------------- The shareholders of Avangard Russia Growth Fund will hold their final meeting on September 16, 2011, at 11:15 a.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 BAY HARBOUR: Shareholder to Receive Wind-Up Report on Sept. 16 -------------------------------------------------------------- The sole shareholder of Bay Harbour Partners, Ltd. will receive on September 16, 2011, 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 c/o Jonathan McLean 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands Telephone: (345) 815 1805 Facsimile: (345) 949-9877 CHIRIN ASIA: Shareholders' Final Meeting Set for September 16 ------------------------------------------------------------- The shareholders of Chirin Asia Pacific Master Fund Limited will hold their final meeting on September 16, 2011, at 11:00 a.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 FALLING WATER: Members Receive Wind-Up Report --------------------------------------------- The members of Falling Water Ltd. received on September 7, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Pascal Dulau c/o Wardour Management Services Limited Telephone: (345) 945-3301 Facsimile: (345) 945-3302 P.O. Box 10147 Grand Cayman KY1-1002 Cayman Islands GENEVA HOLDINGS: Shareholders' Final Meeting Set for September 19 ----------------------------------------------------------------- The shareholders of Geneva Holdings Limited will hold their final meeting on September 19, 2011, 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: Graham Robinson c/o Omar Grant Telephone: (345) 949-7576 Facsimile: (345) 949-8295 P.O. Box 897 Windward 1 Regatta Office Park Grand Cayman KY1-1103 Cayman Islands HESS BRASIL: Members' Final Meeting Set for September 16 -------------------------------------------------------- The members of Hess Brasil (BM-ES-30) Limited will hold their final meeting on September 16, 2011, 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: George C. Barry 1185 Avenue of the Americas New York, N.Y. 10036 United States of America HESS (PHILIPPINES-SC 41): Members' Final Meeting Set for Sept. 16 ----------------------------------------------------------------- The members of Hess (Philippines-SC 41) Limited will hold their final meeting on September 16, 2011, 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: George C. Barry 1185 Avenue of the Americas New York, N.Y. 10036 United States of America KME CAYMAN: Shareholders' Final Meeting Set for September 16 ------------------------------------------------------------ The shareholders of KME Cayman Finance Ltd. will hold their final meeting on September 16, 2011, at 10:15 a.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 LANTERNE ARRAN: Shareholders' Final Meeting Set for September 14 ---------------------------------------------------------------- The shareholders of Lanterne Arran Fund will hold their final meeting on September 14, 2011, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Harbour Centre, Third Floor 42 North Church Street George Town P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands MADISONGREY FUND: Shareholder to Hear Wind-Up Report on Sept. 20 ---------------------------------------------------------------- The sole shareholder of Madisongrey Fund Services (Cayman) Ltd will receive on September 20, 2011, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Equinoxe Alternative Investment Services (Bermuda) Limited Suite 1181, 48 Par-la-Ville Rd. Hamilton HM11 Bermuda MARINILLA INVESTMENTS: Members Receive Wind-Up Report ----------------------------------------------------- The members of Marinilla Investments Limited received on September 5, 2011, the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands MISTRAL INVESTMENT: Members Receive Wind-Up Report -------------------------------------------------- The members of Mistral Investment Fund received on September 7, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Beat Hirschi c/o Maples and Calder, Attorneys-at-law P.O. Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands MSR ASIA: Members' Final Meeting Set for September 12 ----------------------------------------------------- The members of MSR Asia Acquisitions XV, Inc., will hold their final meeting on September 12, 2011, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands TROPHY HUNTER: Shareholder to Receive Wind-Up Report on Sept. 16 ---------------------------------------------------------------- The sole shareholder of Trophy Hunter Partners, Ltd., will receive on September 16, 2011, at 10:15 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Jonathan McLean 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands Telephone: (345) 815 1805 Facsimile: (345) 949-9877 ============= J A M A L C O ============= JAMALCO: Jamaica Government Gets 2 Offers for Refinery Stake ------------------------------------------------------------ RJR News reports that unnamed sources said the Jamaican government has received at least two offers for its stake in JAMALCO (Alcoa Minerals of Jamaica)'s alumina refinery. Switzerland-based commodities trader, Glencore and Chinese metals trader, Zhuhai Hongfan, are rumored to be the potential bidders for the government's stake, according to RJR News. The report notes that the government owns 45% of JAMALCO through the Clarendon Alumina Partners, and has been trying, since last year, to offload that stake, because of its hefty cost associated with a forward sale agreement. RJR News relates that Jamaica Prime Minister Bruce Golding said that the forward sale agreement had cost taxpayers more than JM$12 billion since 2002. The report relays that Prime Minister Golding said that if the government's stake was not divested, taxpayers would be asked to pay a further JM$15 billion before the contract ends in 2013. About JAMALCO JAMALCO (Alcoa Minerals of Jamaica) is a wholly owned subsidiary of Alcoa. JAMALCO mines bauxite and refines it into alumina before exporting the alumina from its port at Rocky Point, Clarendon. * * * As reported in the Troubled Company Reporter-Latin America on April 13, 2009, Radio Jamaica News said Alcoa plans to cut 13,500 jobs or 13% of the work force in Jamaica, because of the global slowdown. Alcoa is also selling four business units and reducing output to save money, the report noted. Caribbean Net News said the government is holding talks with potential purchasers for its 45% stake in the Jamalco refinery in south- central parish of Clarendon. Aluminum giant Alcoa holds 55% of the company, which has a production capacity of 1.4 million tons of alumina. WINDALCO: Plant Reopening Delay Causes Government US$63-Mil. ------------------------------------------------------------ Garfield Myers and Camilo Thame at Jamaica Observer reports that the Jamaica government said a delay in the reopening of West Indies Alumina Company (WINDALCO)'s Kirkvine alumina plant in Manchester by the end of the year will cost the country an estimated US$63 million. State Minister for Energy and Mining Lawrence Broderick told a forum in Mandeville that while talks with Windalco had been "difficult and are at a delicate stage, he anticipates the Kirkvine plant reopening by year-end," according to Jamaica Observer. As reported in the Troubled Company Reporter-Latin America on Feb. 16, 2011, RadioJamaica said that the board of UC Rusal, the parent firm of Windalco, has approved the reopening of the Windalco-Kirkvine Plant. However, RadioJamaica related, the restart of mining activities is subject to the approval by UC Rusal's international lenders and further discussions with its partners on the project. Production at the Windalco-Kirkvine Plant was temporarily suspended in April 2009 due to cost-cutting measures, RadioJamaica recounted. RadioJamaica, citing an internet report, noted that the cost of the restart of operations is expected to be approximately US$9 million while the plant commissioning budget is approximately US$17 million. Jamaica Observer notes that the Bank of Jamaica in its latest balance of payments report showed that alumina export earnings totaled US$184 million for the first four months of 2011, while data from the Port Authority of Jamaica showed that exports of alumina totaled just under 710,000 tones, which suggests a price of US$260 a tone. The report says that should Kirkvine remain closed until January 2012 and the indicative price remains the same, Jamaica stands to lose approximately US$65 million in export earnings. Jamaica Observer notes that Mr. Broderick said that a restart at the Manchester plant had been delayed by hard-nosed demands from both UC Rusal and the government. Jamaica Observer discloses that Mr. Broderick said that the Jamaican government had to consider the need for "balance" in its talks with UC Rusal. "The government of Jamaica wants the plant reopened, but is cognizant of the need for balance in relation to the extent to which we can forego certain revenues as a precondition for the plant's reopening," the report quoted Mr. Broderick as saying. About WINDALCO West Indies Alumina Company is situated on the island of Jamaica in the Caribbean. The company comprises two alumina refineries (Ewarton Works and Kirkvine Works), a shipping port (Port Esquivel) and also bauxite mines in Schwallenburgh (Ewarton) and Russell Place (Kirkvine) and farms in Manchester and St. Ann. * * * As reported in the Troubled Company Reporter-Latin America on March 8, 2010, Jamaica Gleaner said that West Indies Alumina Company will end its bauxite production in Jamaica and make 762 permanent jobs redundant. The report related that the redundancy exercise comes a year after the company suspended production at its Kirkvine, Manchester, and Ewarton, St. Catherine, refineries because of reduced demand for aluminium on the world market. The company is 93% owned by Russian entity, UC Rusal. ======= P E R U ======= CONTINENTAL TRUSTEE: S&P Raises Rating on Synthetic Deal to 'BB+' ----------------------------------------------------------------- Standard & Poor's Ratings Services raised its ratings on 11 Peruvian transactions after it raised the long-term foreign currency sovereign credit rating on Peru to 'BBB/Stable/A-3' from 'BBB-/Positive/A-3'. The sovereign upgrade reflects, among other things, Standard & Poor's expectation that the continuity of the broad fiscal and monetary policy under the new government will support stronger economic policy flexibility and growth. "Of the 11 transactions on which we raised ratings, six are asset-backed securities (ABS) transactions backed by certificados de reconocimiento de derechos del pago anual por obras (CRPAOs) from the Peruvian government. The ratings on these deals reflect the Peruvian government's underlying payment obligation through the Ministry of Transport and Communication on the CRPAOs and other structural features, including credit default swaps and reserve accounts. The IIRSA Norte Financial Ltd. transaction, in particular, also benefits from a partial credit guarantee (PCG) from the Inter-American Development Bank (IADB)," S&P related. Three of the deals are ABS diversified payment right (DPR) financial future flow transactions. The raised ratings reflect S&P's view of: Each bank's ability to generate the necessary assets to service the transaction's timely principal and interest payment; The transactions' strong credit enhancement levels through overcollateralization; and The structural features that mitigate sovereign interference risk and other credit risks. "In our opinion, the upgrades on these banks will improve each bank's ability to generate the necessary assets to service the transactions' timely debt service payments," S&P said. "The last two transactions on which we raised ratings are synthetic, whose structures mirror the credit risk of the underlying collateral's credit quality in the form of a participation interest in a senior loan (in the case of Continental Senior Trustees) and a subordinate loan (for Continental Trustee Ltd.) issued by Banco Continental S.A. (BBB/Stable/A-3)," S&P noted. "We will continue to surveil the ratings on these asset-backed transactions and revise the ratings as necessary to reflect any changes in the transactions' underlying credit quality," S&P added. Ratings Raised Transaction Series Rating/SPUR To From CCR Inc. MT-100 Payment Rights Master Trust (Banco de Credito del Peru) (underlying collateral: future diversified payment rights receivables) 2005-A A(sf)/A(sf) A-(sf)/A-(sf) 2006-A A(sf)/A(sf) A-(sf)/A-(sf) 2008-A A(sf) A-(sf) 2010-A A(sf) A-(sf) 2010-B A(sf) A-(sf) 2010-C A(sf) A-(sf) 2010-D A(sf) A-(sf) Continental DPR Finance Co. (Banco Continental S.A.) (underlying collateral: future diversified payment rights receivables) 2008-A A(sf) A-(sf) 2010-A A(sf) A-(sf) Continental Trustee Ltd. (underlying collateral: synthetic) -- BB+ BB Continental Senior Trustees (Cayman) Ltd. (underlying collateral: synthetic) 2010 BBB BBB- CRPAO PEN Trust #1 (underlying collateral: construction payment obligations) 2008-100 BBB-(sf) BB+ (sf) CRPAO VAC Trust Class A-2 (underlying collateral: construction payment obligations) 2009-100 BBB-(sf) BB+ (sf) CRPAO VAC Trust Class A-1 (underlying collateral: construction payment obligations) 2009-100 BBB-(prelim) BB+(prelim) IIRSA Norte Finance Ltd. (underlying collateral: construction payment obligations with PCG from IADB) -- BBB (sf) BBB-(sf) Interoceanica IV Finance Ltd. (underlying collateral: construction payment obligations) 2007-1 and 2007-2 BBB-(sf) BB+(sf) Peru Enhanced Pass Through Finance Ltd. (underlying collateral: construction payment obligations) -- BBB-(sf) BB+(sf) SBP DPR Finance Co. (Scotiabank) (underlying collateral: future diversified payment rights receivables) 2010-A A(sf) A-(sf) 2010-B A(sf) A-(sf) SPUR--Standard & Poor's underlying rating. *********** 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 T. Fernandez, Valerie U. Pascual, Psyche A. Castillon, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2011. 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 * * *