/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/120116.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, January 16, 2012, Vol. 13, No. 011 Headlines B A R B A D O S REDJET: Denies Reports of Financial Troubles, Plans More Routes B R A Z I L COMPANHIA DE SANEAMENTO: S&P Keeps 'BB+' Corporate Credit Rating B O L I V I A * BOLIVIA: Moody's Says Life Insurance Sector has Neg. Outlook C A Y M A N I S L A N D S ALTERNATIVEFOCUS ALTITUDE: Shareholders Receive Wind-Up Report ALTERNATIVEFOCUS COMMODITAS: Shareholders Receive Wind-Up Report ALTERNATIVEFOCUS LIONGATE: Shareholders Receive Wind-Up Report ALTERNATIVEFOCUS PARAGO: Shareholders Receive Wind-Up Report ALTERNATIVEFOCUS PAULSON: Shareholders Receive Wind-Up Report BEL-AIR INTERNATIONAL: Shareholder Receives Wind-Up Report CHARLEMAGNE CAPITAL: Members Receive Wind-Up Report H3 CAPITAL: Shareholders' Final Meeting Set for Jan. 16 J-CORE NPL1: Shareholders Receive Wind-Up Report MELLON ALPHAEQUITY: Shareholders Receive Wind-Up Report NEUBERGER BERMAN: Shareholders Receive Wind-Up Report NEWTON RE: Shareholder Receives Wind-Up Report OUH INVESTMENTS: Shareholders Receive Wind-Up Report PHOENIX INTERNATIONAL: Members' Final Meeting Set for Jan. 19 R-ONE AGEO: Shareholders Receive Wind-Up Report R-ONE ITABASHI: Shareholders Receive Wind-Up Report R-ONE NIIGATA: Shareholders Receive Wind-Up Report RESIDENTIAL REINSURANCE: Shareholder Receives Wind-Up Report SAPIC II REFERENCE (7): Shareholders Receive Wind-Up Report SAPIC II REFERENCE (16): Shareholders Receive Wind-Up Report SEMPERMACRO (CAYMAN): Shareholder Receives Wind-Up Report TR PROPERTY: Shareholders Receive Wind-Up Report VALAIS RE: Shareholder Receives Wind-Up Report WILLOW RE: Shareholder Receives Wind-Up Report J A M A I C A DIGICEL GROUP: To Shutdown Claro Jamaica, OUR Meets With Firm M E X I C O ALESTRA S DE: Fitch Affirms Rating on Senior Notes at 'BB-' COMISION FEDERAL: S&P Assesses Stand-alone Credit Profile at 'bb' OPDAPAS: Moody's Assigns 'Ba1' Local Currency Issuer Rating T R I N I D A D & T O B A G O CL FIN'L: CLICO Investors Challenge TT Government on EFPA Pay X X X X X X X X * LATAM: La Hipotecaria Gets IDB US$20MM Fund to Boost Lending * BOND PRICING: For the Week January 9, to January 13, 2012 - - - - - =============== B A R B A D O S =============== REDJET: Denies Reports of Financial Troubles, Plans More Routes --------------------------------------------------------------- Carla Bridglal at Trinidad Express reports that REDjet (Airone Caribbean/Airone Ventures Limited) has denied reports that its cancellation of more than 50 routes is due to financial troubles. Redjet said it is on budget and on track to deliver new routes and services, according to Trinidad Express. "Many of our routes, even though they've only been operational for a short time, are making positive contributions and we've launched service to Antigua, St Lucia and Jamaica," REDjet Chairman and Chief Executive Ian Burns told the news agency in a telephone interview. Mr. Burns, Trinidad Express notes, said the reasons for the cancellations were to accommodate three new routes, to be launched later this year, and also to improve flight times for consumers. The report relays that Mr. Burns added that the changes will take place from March 1 and will have increased capacity, better flight times and frequency. Meanwhile, Trinidad Express discloses that Ralph 'Bizzy' Williams, the company's largest Barbados investor, had accused the Barbados government of sabotaging the airline's progress through excessive delays and Bds$8 million which was invested for operating expenses in the initial months of the business had to be used elsewhere. As reported in the Troubled Company Reporter-Latin America on Jan. 12, 2012, RJR News said that Redjet has been forced to cancel flights over the next 11 weeks, after an aggressive expansion in recent months. Redjet said it needs US$8 million dollar injection to continue operations, according to RJR News. RJR News, citing Caribbean Media Corporation, noted that it is in possession of an internal memo from RedJet that revealed Customer Service Manager Roy Norville advising staff that 56 flights "will not be operating and have been taken off sale for commercial reasons." The report disclosed that the company's action will affect four routes, two of which service Jamaica. About REDjet REDjet (Airone Caribbean/Airone Ventures Limited) is a startup low-cost carrier (LCC) based at the Grantley Adams International Airport in Christ Church, Barbados, near Bridgetown. The privately-owned airline, incorporated in Barbados features a fleet of McDonnell Douglas MD-82 and MD-83 aircraft. =========== B R A Z I L =========== COMPANHIA DE SANEAMENTO: S&P Keeps 'BB+' Corporate Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services has assigned its 'brAA+' national scale issue rating to Companhia de Saneamento Basico do Estado de Sao Paulo's (SABESP) debentures amounting to up to R$850 million. Both the 'BB+' credit and 'brAA+' issue ratings reflect SABESP's stand-alone credit profile (SACP), which is supported by company's strong and stable cash flow. Increasing volumes and tariffs, lower labor costs, and a reduction in water losses contribute to the SACP. The company benefits from operating in most municipalities in the state of Sao Paulo, including the municipality of Sao Paulo, which is the most populated and industrialized municipality in Brazil. "The debentures may be split into two series, maturing 2017 and 2019, respectively, depending on the total amount issued. The company intends to use the proceeds to pay down existing short- term debt. This issuance will help improve SABESP's debt profile (the company has about R$1.5 billion of debt maturing in 2012). We assess SABESP's liquidity as 'adequate' (as defined by our criteria) despite its heavy capital expenditures, which we believe will average R$2 billion annually over the next few years and heavy maturity profile this year. As of Sept. 30, 2011, the company reported debt maturities of R$1 billion in the short term and cash reserves of R$2.1 billion. We expect that SABESP will continue to fund its capital expenditures and refinancing needs through long-term debt issuances. In 2011, it issued about R$1.1 billion in the national and international debt markets. Funds from operations will likely remain a significant source of funding for the company," S&P said. "SABESP's SACP reflects its 'satisfactory' business risk profile and 'significant' financial risk profile. SABESP has a track record of reporting above-average operating efficiency in its water and sewage services, resulting in strong profitability. SABESP's EBITDA margin for the 12 months ended Sept. 30, 2011, was 40.1%. These factors partially mitigate some uncertainties about the extent of the regulator's tariff reset methodology and its effects on SABESP. Nonetheless, the regulatory framework for water and waste is improving, with clearer national rules and an increasing number of formal program contracts with serviced municipalities. Our credit rating considers that there will be no significant burden on SABESP's cash flows because of the new methodology, once it takes effect. As of September 2011, SABESP's tariffs had increased by 6.83%," S&P said. Ratings List Companhia de Saneamento do Estado de Sao Paulo Corporate Credit Rating BB+/Stable/-- Rating Assigned R$850 million debentures brAA+ ============= B O L I V I A ============= * BOLIVIA: Moody's Says Life Insurance Sector has Neg. Outlook -------------------------------------------------------------- The industry outlook for Bolivian property and casualty (P&C) insurance sector is stable, while that for the country's life insurance sector is negative, Moody's Investors Service says in two new reports, with the fortunes of both sectors tied to Bolivia's overall economic performance. "We expect Bolivian P&C insurers to experience moderate growth over the coming 12--18 months, in line with the country's economic activity," says Vice President and author of the reports Diego Nemirovsky. P&C insurers' results should not be subject to significant volatility, he says, with combined ratios remaining below 100%. Nevertheless, P&C sector profitability is expected to be somewhat pressured from rising operating expenses and intense competition, particularly in large state-related accounts. "Bolivian P&C insurers are likely to experience strain from increasing expenses, competition and the impact of inflation on ultimate claims costs," Mr. Nemirovsky says. For life insurers, the outlook is more challenging. While these companies are also seeing moderate growth and their financial indicators are sound, persistent low interest rates are pressuring earnings. Particularly affected are firms exposed to run-off annuities in the pay-out phase, as Bolivian insurers must generate sufficient yield on their investments to cover minimum interest rate guarantees for policyholders. Bolivian life insurers also face greater long-term challenges, primarily as a result of still-depressed public awareness about the need for long-term planning through life products, Mr. Nemirovsky says. Additionally, life insurance firms saw their revenues plummet in 2007, following market changes that eliminated the most significant segment of the market. Overall, however, greater public awareness of insurance and retirement savings products should support long-term revenue and earnings growth for both P&C and life insurers in Bolivia, and still-low penetration rates suggest plenty of opportunity for expansion. Nonetheless, the significant wealth and income disparity in the country will continue to be a constraining factor. The reports are titled "Bolivian Insurance: P&C is Stable but Life and Annuity Markets are Negative" and "Bolivian Insurance -- Industry Scorecard." ========================== C A Y M A N I S L A N D S ========================== ALTERNATIVEFOCUS ALTITUDE: Shareholders Receive Wind-Up Report -------------------------------------------------------------- The shareholders of Alternativefocus Altitude International Ltd received on Dec. 28, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Management Limited Landmark Square, 1st Floor 64 Earth Close, West Bay Beach P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands Facsimile: 1 345 769-9351 ALTERNATIVEFOCUS COMMODITAS: Shareholders Receive Wind-Up Report ---------------------------------------------------------------- The shareholders of Alternativefocus Commoditas Ltd received on Dec. 28, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Management Limited Landmark Square, 1st Floor 64 Earth Close, West Bay Beach P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands Facsimile: 1 345 769-9351 ALTERNATIVEFOCUS LIONGATE: Shareholders Receive Wind-Up Report -------------------------------------------------------------- The shareholders of Alternativefocus Liongate Multi-Strategy Ltd. received on Dec. 28, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Management Limited Landmark Square, 1st Floor 64 Earth Close, West Bay Beach P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands Facsimile: 1 345 769-9351 ALTERNATIVEFOCUS PARAGO: Shareholders Receive Wind-Up Report ------------------------------------------------------------ The shareholders of Alternativefocus Parago Futures Ltd. received on Dec. 28, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Management Limited Landmark Square, 1st Floor 64 Earth Close, West Bay Beach P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands Facsimile: 1 345 769-9351 ALTERNATIVEFOCUS PAULSON: Shareholders Receive Wind-Up Report ------------------------------------------------------------- The shareholders of Alternativefocus Paulson Advantage Ltd received on Dec. 28, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Management Limited Landmark Square, 1st Floor 64 Earth Close, West Bay Beach P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands Facsimile: 1 345 769-9351 BEL-AIR INTERNATIONAL: Shareholder Receives Wind-Up Report ---------------------------------------------------------- The shareholder of Bel-Air International received on Jan. 9, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Campbell Directors Limited Telephone: 1 345 949 2648 Facsimile: 1 345 945 2877 Scotia Centre, 4th Floor, Albert Panton Street George Town, Grand Cayman Cayman Islands CHARLEMAGNE CAPITAL: Members Receive Wind-Up Report --------------------------------------------------- The members of Charlemagne Capital Russia Value Fund received on Dec. 28, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Jane Bates James Houghton c/o Charlemagne Capital Limited St Mary's Court, 20 Hill Street Douglas, Isle of Man IM1 1EU British Isles H3 CAPITAL: Shareholders' Final Meeting Set for Jan. 16 ------------------------------------------------------- The shareholders of H3 Capital will hold their final meeting on Jan. 16, 2012, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Linburgh Martin Intertrust (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034 Grand Cayman KYI-1102 Cayman Islands J-CORE NPL1: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of J-Core NPL1 Cayman received on Dec. 5, 2011, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidator is: Nicola Eccleston Beverly Bernard c/o Maples and Calder, Attorneys-at-law The Center, 53rd Floor 99 Queen's Road Central Hong Kong MELLON ALPHAEQUITY: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Mellon Alphaequity UK Fund, Ltd. received on Jan. 6, 2012, the liquidators' 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 c/o Jennifer Chailler Telephone: (345) 814 6847 NEUBERGER BERMAN: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Neuberger Berman G+ Commodities Fund Ltd. received on Dec. 28, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard Finlay c/o Tania Dons Telephone: (345) 814 7766 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands NEWTON RE: Shareholder Receives Wind-Up Report ---------------------------------------------- The shareholder of Newton Re Ltd. received on Jan. 9, 2012, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Kevin Poole Shane Delaney Telephone: 914-2265/ 914-2254 / 949-5263 Facsimile: 949-6021 P.O. Box 10233 Grand Cayman Cayman Islands OUH INVESTMENTS: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of OUH Investments Limited received on Jan. 6, 2012, 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 c/o Jennifer Chailler Telephone: (345) 814 6847 PHOENIX INTERNATIONAL: Members' Final Meeting Set for Jan. 19 ------------------------------------------------------------- The members of Phoenix International Holdings Limited will hold their final meeting on Jan. 19, 2012, 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: Ian D. Stokoe c/o Sarah Moxam Telephone: (345) 914 8634 Facsimile: (345) 945 4237 PO Box 258 Grand Cayman KY1-1104 Cayman Islands R-ONE AGEO: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of R-One Ageo Holdings received on Jan. 6, 2012, 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 c/o Jennifer Chailler Telephone: (345) 814 6847 R-ONE ITABASHI: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of R-One Itabashi Holdings received on Jan. 6, 2012, 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 c/o Jennifer Chailler Telephone: (345) 814 6847 R-ONE NIIGATA: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of R-One Niigata Holdings received on Jan. 6, 2012, 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 c/o Jennifer Chailler Telephone: (345) 814 6847 RESIDENTIAL REINSURANCE: Shareholder Receives Wind-Up Report ------------------------------------------------------------ The shareholder of Residential Reinsurance 2008 Limited received on Jan. 9, 2012, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Shaun Geils Kevin Poole Telephone: 914-2259/ 914-2265 / 949-5263 Facsimile: 949-6021 P.O. Box 10233 Grand Cayman Cayman Islands SAPIC II REFERENCE (7): Shareholders Receive Wind-Up Report ----------------------------------------------------------- The shareholders of Sapic II Reference Fund (7) Limited received on Jan. 12, 2012, 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 SAPIC II REFERENCE (16): Shareholders Receive Wind-Up Report ------------------------------------------------------------ The shareholders of Sapic II Reference Fund (16) Limited received on Jan. 12, 2012, 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 SEMPERMACRO (CAYMAN): Shareholder Receives Wind-Up Report --------------------------------------------------------- The shareholder of Sempermacro (Cayman) Limited received on Dec. 29, 2011, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Michael Pearson c/o Brad Kirby Deloitte & Touche Citrus Grove Building, 4th Floor Goring Avenue George Town KY1-1109 Telephone: +1(345) 814 3471 e-mail: bwkirby@deloitte.com TR PROPERTY: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of TR Property, Ltd. received on Jan. 6, 2012, the liquidators' 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 c/o Jennifer Chailler Telephone: (345) 814 6847 VALAIS RE: Shareholder Receives Wind-Up Report ---------------------------------------------- The shareholder of Valais Re Ltd. received on Jan. 9, 2012, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Owen Dinnall Dena Thompson Telephone: 914-2255/ 914-2267 / 949-5263 Facsimile: 949-6021 P.O. Box 10233 Grand Cayman Cayman Islands WILLOW RE: Shareholder Receives Wind-Up Report ---------------------------------------------- The shareholder of Willow Re Ltd. received on Jan. 9, 2012, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Shaun Green Dena Thompson Telephone: 914-2260/ 914-2267 / 949-5263 Facsimile: 949-6021 P.O. Box 10233 Grand Cayman Cayman Islands ============= J A M A I C A ============= DIGICEL GROUP: To Shutdown Claro Jamaica, OUR Meets With Firm ------------------------------------------------------------- Debbie-Ann Wright at The Gleaner reports that the Office of Utilities Regulation is set to meet with Digicel Group after it was revealed that the previous administration had removed a key condition it had imposed in approving the company's merger with Claro Jamaica. When then Prime Minister Bruce Golding approved the merger in August, he insisted Digicel Group must continue operating two separate networks, according to Jamaica Gleaner. However, the report relates that OUR revealed that just weeks into his tenure as prime minister, Andrew Holness withdrew the two-network requirement. Jamaica Gleaner notes that with the removal of that condition, Digicel Group said it would be shutting down Claro in March 1. The report discloses that OUR said in a statement that Digicel announced it would shut down the Claro network on March 1. Jamaica Gleaner notes that the company said the shutting down of the Claro network would allow it to operate more efficiently. As reported in the Troubled Company Reporter-Latin America on Jan. 10, 2012, RJR News said that Digicel Group Limited has hit back at the contents of a lawsuit filed by the Fair Trading Commission in opposition of its acquisition of Claro Jamaica. The FTC in the lawsuit said the deal will not benefit consumers and will slowdown technological advancements in the telecoms sector, according to RJR News. RJR News noted Digicel Group said that its acquisition of Claro will not hurt consumers rather it will do just the opposite. The report relayed that Digicel Group added that the merger will spur innovation and investments which will bring benefits to consumers. 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 based in Jamaica. It 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 27, 2011, the company continues to carry Moody's "Caa1" senior unsecured debt rating. =========== M E X I C O =========== ALESTRA S DE: Fitch Affirms Rating on Senior Notes at 'BB-' ----------------------------------------------------------- Fitch Ratings has affirmed the following ratings for Alestra, S. de R.L. de C.V.): -- Local currency Issuer Default Rating (IDR) at 'BB-'; -- Foreign currency IDR at 'BB-'; -- Senior notes due 2014 at 'BB-'. The Rating Outlook is Stable. Alestra's ratings reflect stable operating performance, moderate leverage, manageable debt maturity profile, lower business risk due to a de-emphasis of the international and residential markets and stable cash flow generation. The ratings incorporate its position as a niche service provider to enterprise customers, its small scale, advanced network infrastructure, moderate regulatory risk and sound financial profile. Conversely, the ratings are tempered by the currency mismatch between debt and cash flows and a strong competitive environment. Lower business risk has resulted as a consequence of management's strategy to grow data, Internet and local services (DILS). Additionally, the company's focus on corporate customers provides stability for cash flow as the competitive environment is less intense than the residential market. Ending of AGN Agreement Manageable Fitch believes the ending of the AT&T Global Network (AGN) agreement with AT&T will have a negative effect on operating results but should be manageable for Alestra's credit quality. Considering the net effect on EBITDA by the loss of revenue related to the AGN agreement and the future revenue associated with the lease of infrastructure to AT&T, pro forma total debt to EBITDA for the 12 months ended Sept. 30, 2011 is expected to increase to 2.1 times (x) from 1.8x. Fitch expects that revenue and EBITDA loss related to this agreement will be partially compensated by the leasing to AT&T of the infrastructure needed to provide these services and by growth in value added services over the next few years. The AGN agreement has accounted for approximately 20% of revenues and EBITDA of Alestra. Strategy Focusing on IT Solutions Value added services should continue growing in the next few years primarily driven by information technology solutions, which is expected to become increasingly important to EBITDA generation for value added services. Alestra is expected to focus on data centers and cloud services by offering mobility to its customers. Mobility can be provided either by reaching an agreement with a mobile operator or by participating in future spectrum auctions. Fitch expects EBITDA margins to moderately increase during the next few years as the mix of higher margin value added services continues to grow as a proportion of consolidated revenues. Fitch estimates that for full year 2011, approximately 80% of revenues and 87% of EBITDA will be generated by value added services. In Fitch's opinion, Alestra's business strategy to grow revenues from its corporate customers by offering value added services helps to maintain low business risk and contributes to stable operating performance. Corporate customers account for approximately 95% of gross profit. Fitch expects that over the next few years, the growth in revenues and gross profits from these customers should be sustained by the introduction of convergent services, such as IP telephony, security, hosting, managed services and virtual private networks (VPNs). The company also looks to underpin its consumer service offering with differentiated services. The ratings incorporate Fitch's expectations that total debt to EBITDA will be below 2.5x in the long term. A sustained leverage metric above 2.5x over time would negatively affect credit quality and could result in a downgrade. For the 12 months ended Sept. 30, 2011 total debt to EBITDA and EBITDA to interest expense were 1.8x and 4.6x, respectively. Considering the effect of the ending of the AGN agreement and the devaluation of the MXN during the last quarter of 2011, Fitch estimates that on a pro forma basis the total debt to EBITDA ratio should be close to 2.2x. The ratings also factor historical generation of positive free cash flow (FCF) which totaled MXN642 million for this period. Increases in capex over the next few years can limit the company's FCF generation. Alestra is exposed to currency mismatch between debt and cash flow and has refinancing needs by 2014. Pro forma for the ending of the AGN agreement, approximately 16% of revenues and 15% of EBITDA are denominated in USD, which is lower than when the AGN agreement was in place. As of Sept. 30, 2011, total debt amounted to US$216 million, composed of a US$10 million bank facility, US$6 million vendor financing and US$200 million senior notes due 2014. Fitch expects that at least part of the 2014 maturity will be refinanced in advance but failure to do so is likely to pressure the ratings. COMISION FEDERAL: S&P Assesses Stand-alone Credit Profile at 'bb' ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its corporate credit ratings on Comision Federal De Electricidad (CFE) at foreign currency 'BBB' and local currency 'A-'. The outlook is stable. "Our ratings on CFE reflect our opinion that there is an almost certain likelihood that the United Mexican States (foreign currency BBB/Stable/A-3; local currency A-/Stable/A-2) would provide timely and sufficient extraordinary support to CFE in the event of financial distress," S&P said. "In accordance with our criteria for government-related entities, our view is based on our assessment of CFE's critical role as the only provider of electric services in Mexico and the entity responsible for planning and operating the country's electric system," said Standard & Poor's credit analyst Carolina Duran. "In our opinion, this provides a strong economic incentive for the sovereign to support the issuer during periods of financial distress." "We also base the ratings on CFE on its integral link with the government based on full and stable ownership of CFE, its participation in appointing senior management and defining strategy, and integration of the company in the federal government's annual budget," S&P said. "We assess CFE's stand-alone credit profile (SACP) at 'bb', given the limited free operating cash flow generation that has resulted in an increased use of debt over the past couple of years to finance its capital expenditures. The SACP also reflects the company's large unfunded pension obligations, a rate-setting policy that doesn't fully compensate all power production cost increases, and the company's role as a non-rent-seeking enterprise," S&P said. "These weaknesses are partially offset by the company's role as Mexico's only vertically integrated electric utility and the government's strong economic incentive to provide ongoing and extraordinary support," S&P said. "The stable outlook mirrors that on Mexico. This reflects our expectation that no major changes will be made to CFE's role in the Mexican energy sector or links with the federal government," S&P said. "We would change our ratings on CFE upon a change in the foreign or local currency rating on the sovereign," S&P said. OPDAPAS: Moody's Assigns 'Ba1' Local Currency Issuer Rating ----------------------------------------------------------- Moody's de Mexico assigned first-time issuer ratings of A1.mx (Mexico National Scale) and Ba1 (Global Scale, local currency) to the Organismo Publico Descentralizado para la prestacion de los servicios de Agua Potable, Alcantarillado y Saneamiento del Municipio de Metepec (OPDAPAS). The ratings outlook is stable. Ratings Rationale The ratings reflect OPDAPAS' debt-free position, strong financial performance and positive liquidity position. These credit strengths are moderately offset by the company's expected increase in infrastructure needs due to Metepec's growing population. The ratings also take into account the moderate likelihood that the Municipality of Metepec (Ba1/A1.mx) would act to provide liquidity support to OPDAPAS if the need arose. Between 2006 and 2010, OPDAPAS recorded an average cash financing surplus equivalent to 7.3% of total revenues, a high level compared to other rated water companies in Mexico. According to Moody's analyst Rodolfo Torres, "OPDAPAS' customer base is mainly comprised of high income households and medium-sized commercial entities; when paired with effective collection practices, this has supported the company's financial performance in recent years." OPDAPAS has recently implemented a program whereby customers can pay for water and sewer services in several banks, which is expected to improve collection in the future. In 2010, OPDAPAS recorded a cash financing requirement equivalent to -6.1% of total revenues that was financed with cash. This negative result was due to a reduction in transfers from The National Water Commission in 2010. As of September 2011, this situation has already been redressed and OPDAPAS is expected to have recorded a cash financing surplus equal to 3.1% of total revenues in 2011 "In 2012, OPDAPAS is planning a 10% rate increase which, if materialized, could strengthen further the company's performance," said Mr. Torres. Historically, OPDAPAS has been able to finance its own operations and a part of its capital projects with its own resources. The water company has not acquired debt since it was created and has no plans to contract additional debt in the near future. Additionally, Moody's assigns a moderate likelihood that the Municipality of Metepec (rated Ba1/A1.mx) would act to provide liquidity support to OPDAPAS if ever required. "The moderate likelihood reflects our assessment of the linkages between OPDAPAS and Metepec, its municipal owner, balanced by the water utility's financial independence," said Mr. Torres. OPDAPAS is the water company of the Municipality of Metepec and provides water, sewer and water treatment services to 98% of Metepec's population. OPDAPAS' customer base is mostly residential (92%). What could change the rating up/down Given the link between the company and the municipality, by which the increases in tariffs should be approved by the municipal congress and Metepec and OPDAPAS share the same economic base, an uplift in the ratings is not likely in the medium term. In contrast, an uplift on Metepec's issuer ratings might lead to an upgrade of OPDAPAS' issuer ratings. The deterioration of financial performance resulting in debt increases or the tightening of liquidity, and/or a shift in management practices, could exert downward pressure on the ratings. In addition a downgrade on Metepec's issuer ratings may lead to a downgrade in OPDAPAS' issuer ratings. The principal methodology used in this rating was "Government- Related Issuers: Methodology Update" published in July 2010. =============================== T R I N I D A D & T O B A G O =============================== CL FIN'L: CLICO Investors Challenge TT Government on EFPA Pay ------------------------------------------------------------- Caribbean360.com reports that a group of Colonial Life Insurance Company (Trinidad) Limited (CLICO) policyholders went again before the court to challenge Trinidad and Tobago government's refusal to pay them the full amount due on their Executive Flexible Premium Annuities (EFPA). Port-of-Spain High Court has granted the United Policyholders Group and four other applicants a judicial review application to challenging the state's refusal to act on a promise to pay CLICO EFPA holders' their full sum is expected to be heard on February 1, according to Caribbean360.com. The report notes that the policyholders, represented by attorney Ramesh Lawrence Maharaj and Peter Knob, QC, had prior to the court hearing held a meeting at Centre Pointe Mall in Chaguanas, in which Mr. Maharaj had said he was optimistic that ruling will be made in the policyholders' favor. Caribbean360.com relates that they were seeking an interim court order that Government give details of the assets of CLICO which has been sold and how the proceeds of the sales were applied. Mr. Maharaj said the lawsuit also sought to compel Government to give details of the EFPA policyholders who have been paid in full since January 2009, the report notes. Caribbean360.com relays that Mr. Maharaj said he hoped the matter should be resolved by March. About CL Financial CL Financial Group Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company by Cyril Duprey, Colonial Life Insurance Company was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. * * * As reported in the Troubled Company Reporter-Latin America on August 10, 2009, A.M. Best Co. downgraded the financial strength rating to C (Weak) from B (Fair) and issuer credit rating to "ccc" from "bb" of Colonial Life Insurance Company (Trinidad) Limited (CLICO) (Trinidad & Tobago). The ratings remain under review with negative implications. CLICO is an insurance member company of CL Financial Limited (CL Financial), a diversified holding company based in Trinidad & Tobago. According to a TCR-LA report on Feb. 20, 2009, citing Trinidad and Tobago Express, Tobago President George Maxwell Richards signed bailout bills for CL Financial, giving the government the authority to control the company's unit, Colonial Life Insurance Company, and giving the central bank extensive powers to treat with CL Financial's collapse and the consequent systemic crisis. =============== X X X X X X X X =============== * LATAM: La Hipotecaria Gets IDB US$20MM Fund to Boost Lending -------------------------------------------------------------- La Hipotecaria will get a financial package of approximately US$20 million from the Inter-American Development Bank to boost residential mortgage financing to low- and middle-income individuals in El Salvador, Panama and Colombia. The IDB financing comprises a senior, secured and revolving credit line for up to US$15 million for the company's units in the three countries and local currency partial credit guarantees to be issued in Colombia for up to US$5 million. Depending on market conditions, the company may raise an additional US$10 million through the IDB loan syndication program. "There is an important housing gap in the region and reducing it is not only a priority for governments and the IDB, but represents an important opportunity for higher private sector participation in mortgage financing," said Daniela Carrera-Marquis, Chief of the Financial Markets Division at the IDB's Structured and Corporate Finance Department. "At the same time, the project supports La Hipotecaria in its efforts to continue to tap the capital markets for long-term financing for their mortgage origination, thus contributing to close the region's housing deficit and to deepen local capital markets." The financial package provided by the IDB will pave the way for La Hipotecaria to expand its mortgage portfolio while maintaining an adequate balance sheet position, according to Marisela Alvarenga, the IDB project team leader. It will also allow the company to better tap local capital markets to fund its lending, particularly in Colombia where it has recently started operations. La Hipotecaria is expected to finance purchases of as many as 2,400 additional houses annually in the three countries. The project supports the area of accessBanking within the beyondBanking program, an IDB program that promotes sustainable banking principles and practices in Latin America and the Caribbean. The access banking projects aim at promoting financial deepening strategies and at supporting the development of products and services for persons with limited access to the financial system. La Hipotecaria is a leading mortgage lender in Panama and El Salvador and started operating in Colombia last year. The company is a pioneer in the creation of investment-grade mortgage-backed securities offered through local and international markets to local and international institutional investors, while retaining servicing rights on all originated mortgage loans. "The partnership with the IDB comes at this important moment in our growth strategy. This long term financing is closely aligned with our strategic objectives and supports our efforts to improve life quality for our clients in Panama, El Salvador and Colombia by providing adequate mortgage financing solutions," said John D. Rauschkolb, vice president of La Hipotecaria. About SCF The IDB's Structured and Corporate Finance Department (SCF) manages all IDB non-sovereign loan guarantee loan operations for large-scale projects, companies, and financial institutions in Latin America and the Caribbean. Through its syndicated loan program, SCF plays a catalytic role in helping to mobilize third party resources through partnerships with commercial banks, institutional investors, co-guarantors and other co-lenders for projects with high developmental impact. * BOND PRICING: For the Week January 9, to January 13, 2012 ----------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- ARGENT-$DIS 8.28 12/31/2033 USD 74.5 ARGENT-PAR 1.18 12/31/2038 ARS 45.43 ARGENT- DIS 7.82 12/31/2033 EUR 55 ARGENT- DIS 7.82 12/31/2033 EUR 56 ARGENT- DIS 7.82 12/31/2033 EUR 59.25 ARGENT- DIS 4.33 12/31/2033 JPY 42 ARGENT- PAR 0.45 12/31/2038 JPY 15 ARGENT- PAR&GDP 0.45 12/31/2038 JPY 8 PROV BUENOS AIRE 9.62 4/18/2028 USD 65.74 BRAZIL ------ BANCO BONSUCESSO 9.25 11/3/2020 USD 71 BANCO BONSUCESSO 9.25 11/3/2020 USD 74.75 BANCO CRUZEIRO 8.87 9/22/2020 USD 64.75 BANCO CRUZEIRO 8.87 9/22/2020 USD 61.75 BANCO CRUZEIRO 8.25 1/20/2016 USD 72.75 BANCO CRUZEIRO 8.25 1/20/2016 USD 72.25 CAYMAN ISLAND ------------- BANCO BPI (CI) 4.15 11/14/2035 EUR 34.875 BCP FINANCE BANK 5.01 3/31/2024 EUR 37.625 BCP FINANCE BANK 5.31 12/10/2023 EUR 39.625 BCP FINANCE CO 5.543 EUR 30.125 BCP FINANCE CO 4.239 EUR 32.75 BES FINANCE LTD 5.58 EUR 34 BES FINANCE LTD 4.5 EUR 44.5 BES FINANCE LTD 6.625 EUR 46.5 CAM GLOBAL FIN 6.08 12/22/2030 EUR 60.25 CHINA AUTOMATION 7.75 4/20/2016 USD 67.036 CHINA FORESTRY 10.25 11/17/2015 USD 67 CHINA FORESTRY 10.25 11/17/2015 USD 67 CHINA HUIYUAN JU 4 4/29/2016 USD 65.99 CHINA MED TECH 6.25 12/15/2016 USD 35.92 CHINA MED TECH 4 8/15/2013 USD 56.37 CHINA NICKEL 10 12/12/2012 HKD 74.80 CHINA SUNERGY 4.75 6/15/2013 USD 61.5 DUBAI HLDNG COMM 6 2/1/2017 GBP 72.55 EFG ORA FUNDING 1.7 10/29/2014 EUR 49.39 ESFG INTERNATION 5.75 EUR 34.16 EVERGRANDE REAL 9.25 1/19/2016 CNY 71.83 FANTASIA HOLDING 14 5/12/2015 USD 74 FANTASIA HOLDING 14 5/12/2015 USD 74.25 GLORIOUS PROPERT 13 10/25/2015 USD 71.54 GREENTOWN CHINA 9 11/8/2013 USD 66.25 GREENTOWN CHINA 9 11/8/2013 USD 66.25 HOME INNS 2 12/15/2015 USD 73.493 HOME INNS 2 12/15/2015 USD 72.547 JINKOSOLAR HOLD 4 5/15/2016 USD 38.167 KAISA GROUP 8 12/20/2015 CNY 72.347 LDK SOLAR CO LTD 4.7 4/15/2013 USD 63.25 LDK SOLAR CO LTD 4.7 4/15/2013 USD 53.69 LDK SOLAR CO LTD 4.75 4/15/2013 USD 65 LUPATECH FINANCE 9.87 USD 75 MANILA CAVIT TOL 12 9/15/2022 USD 75 MBPS FINANCE 11.25 11/15/2015 USD 72 MBPS FINANCE 11.25 11/15/2015 USD 71.5 MINGFA GROUP INT 5.25 5/23/2016 HKD 70.06 POWERLONG RE HLD 13.75 9/16/2015 USD 67.62 POWERLONG RE HLD 11.5 3/17/2014 CNY 67.95 POWERLONG RE HLD 13.75 9/16/2015 USD 68 PUNCH TAVERNS 4.7 6/30/2033 GBP 65.40 RENHE COMMERCIAL 13 3/10/2016 USD 72 RENHE COMMERCIAL 13 3/10/2016 USD 69.12 RENHE COMMERCIAL 11.75 5/18/2015 USD 69.75 RENHE COMMERCIAL 11.75 5/18/2015 USD 68.78 SOLARFUN POWER H 3.5 1/15/2018 USD 50 SOLARFUN POWER H 3.5 1/15/2018 USD 49.40 SPG LAND HOLDING 13.5 4/8/2016 USD 63.62 SUNTECH POWER 3 3/15/2013 USD 45.95 SUNTECH POWER 3 3/15/2013 USD 43.58 TEXHONG TEXTILE 7.62 1/19/2016 USD 73.62 TEXHONG TEXTILE 7.62 1/19/2016 USD 75.5 YUZHOU PROPERTIE 13.5 12/15/2015 USD 68.37 YUZHOU PROPERTIE 13.5 12/15/2015 USD 69.00 CHILE ----- AGUAS NUEVAS 3.4 5/15/2012 CLP 0.62 CGE DISTRIBUCION 3.25 12/1/2012 CLP 19.54 COLBUN SA 3.2 5/1/2013 CLP 73.1 ESVAL S.A. 3.8 7/15/2012 CLP 25.3 INVERSIONES ALSA 8 8/18/2018 USD 77.9 MASISA 4.2 10/15/2012 CLP 19.8 QUINENCO SA 3.5 7/21/2013 CLP 24.9 PANAMA ------ NEWLAND INT PROP 9.5 11/15/2014 USD 52 PUERTO RICO ----------- BANCO SANTANDER 6.1 6/1/2032 USD 52.647 BANCO SANTANDER 6.3 6/1/2032 USD 61.523 PUERTO RICO CONS 6 12/15/2034 USD 0.01 PUERTO RICO CONS 6.3 11/1/2033 USD 0.01 PUERTO RICO CONS 6.2 5/1/2017 USD 53 PUERTO RICO CONS 6.5 4/1/2016 USD 62 VENEZUELA --------- ELEC DE CARACAS 8.5 4/10/2018 USD 59.53 PETROLEOS DE VEN 5.5 4/12/2037 USD 48.91 PETROLEOS DE VEN 5.3 4/12/2027 USD 50.15 PETROLEOS DE VEN 5.2 4/12/2017 USD 64.50 PETROLEOS DE VEN 5.1 10/28/2016 USD 65.67 PETROLEOS DE VEN 5 10/28/2015 USD 71.63 VENEZUELA 7 3/31/2038 USD 59.00 VENEZUELA 7 3/31/2038 USD 59 VENEZUELA 6 12/9/2020 USD 62 VENEZUELA 7.65 4/21/2025 USD 63 VENEZUELA 8.25 10/13/2024 USD 67 VENEZUELA 9.25 5/7/2028 USD 70.25 VENEZUELA 7 12/1/2018 USD 72 VENEZUELA 9 5/7/2023 USD 71.75 VENEZUELA 9.25 9/15/2027 USD 72.35 VENEZUELA 9.25 9/15/2027 USD 72.6 VENEZUELA 7.75 10/13/2019 USD 73 VENZOD - 189000 9.37 1/13/2034 USD 70.25 *********** 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, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2012. 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 Peter Chapman at 240/629-3300. * * * End of Transmission * * *