/raid1/www/Hosts/bankrupt/TCRLA_Public/120309.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, March 9, 2012, Vol. 13, No. 050
Headlines
A R G E N T I N A
* ARGENTINA: S&P Rates Province of Salta's US$220MM Notes at 'B'
B E R M U D A
GLOBAL FUTURES: Creditors' Proofs of Debt Due March 16
GLOBAL FUTURES: Member to Receive Wind-Up Report on April 2
MAN RMF MULTI-STYLE: Creditors' Proofs of Debt Due March 16
MAN RMF MULTI-STYLE: Member to Receive Wind-Up Report on April 2
B R A Z I L
FIBRIA CELULOSE: Plans Filing for US$750-Mil. Add-On Stock Sale
C A Y M A N I S L A N D S
BLODGETT ASSURANCE: Creditors' Proofs of Debt Due March 19
BOAT CAPITAL: Creditors' Proofs of Debt Due March 20
BOW CAPITAL: Creditors' Proofs of Debt Due March 20
COREVEST MANAGEMENT: Creditors' Proofs of Debt Due March 19
COREVEST PARTNERS: Creditors' Proofs of Debt Due March 19
CTC OPPORTUNITIES: Creditors' Proofs of Debt Due March 19
EBB CAPITAL: Creditors' Proofs of Debt Due March 20
EEA CAYMAN: Creditors' Proofs of Debt Due March 27
ISQUARE OFFSHORE: Creditors' Proofs of Debt Due March 29
NAUTICAL CAPITAL: Creditors' Proofs of Debt Due March 20
RUDDER CAPITAL: Creditors' Proofs of Debt Due March 20
STREAM CAPITAL: Creditors' Proofs of Debt Due March 20
SURGINSURANCE LTD: Creditors' Proofs of Debt Due March 28
VARIANT CAPITAL: Creditors' Proofs of Debt Due March 19
WATERFALL CAPITAL: Creditors' Proofs of Debt Due March 20
J A M A I C A
CARIBBEAN CEMENT: TCL Group Buckling Under US$280 Million Debt
M E X I C O
BANOBRAS: Stand-Alone Baseline Credit Assessment Raised to 'Ba2'
LOCATION BASED TECHNOLOGIES: Receives Mexico NYCE Approval
URBI DESARROLLOS: Fitch Affirms Ratings on IDR, Sr. Notes at BB-
P E R U
BANCO DE CREDITO: Moody's Affirms 'D+' Bank Fin'l Strength Rating
T R I N I D A D & T O B A G O
TRINIDAD CEMENT: TTMA Calls for End to Workers Strike
- - - - -
=================
A R G E N T I N A
=================
* ARGENTINA: S&P Rates Province of Salta's US$220MM Notes at 'B'
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary 'B'
rating to Argentina's Province of Salta's (Salta's) up to $220
million notes due 2022. The notes are collateralized by Salta's
right to receive 80% of the hydrocarbon royalties due to it under
all dedicated concessions.
"This is Salta's second structured transaction secured by oil and
gas royalties. The first issuance, Salta Hydrocarbon Royalty
Trust, was issued in March 2001; its performance has been strong,
even during the Argentine sovereign crisis in 2001-2002. The new
issuance will be subordinated to the payment of all amounts due
under Salta Hydrocarbon Royalty Trust, which is expected to be
cancelled on Dec. 28, 2012," S&P said.
The secured amortizing notes are Salta's direct, general,
unconditional, and unsubordinated obligations and will be secured
by the underlying collateral.
The notes will pay a quarterly fixed interest rate to be
determined at closing. Interest payments will begin in June 2012
and principal payments will start in December 2013. The final
legal maturity will be on March 2022.
"The amortizing notes are secured by certain gas and oil
royalties that different oil and gas producers pay to Salta.
These royalties represent 12% of the oil and gas production value
at the wellhead of the dedicated concessionaires in the following
areas: Acambuco, Agua Blanca, Aguarage, El Vinalar, Palmar
Largo, Puesto Guardi n, Ramos, San Antonio Sur, and Valle Morado.
As of Dec. 31, 2011, the dedicated areas accounted for all of
Salta's oil and gas production," S&P said.
The preliminary rating is based on the transaction's
characteristics, including:
* The solid credit enhancement protection that includes
overcollateralization and a debt service reserve account equal
to the next scheduled debt service payment. In addition,
extraordinary and trigger event prepayment accounts will exist
to cover any liquidity shortfall in case of a prepayment.
* The pool of highly rated private oil producers/concessionaries
that support the underlying assets. These entities, which
currently pay royalties to Salta, will pay directly to the
Argentine onshore trust for the secured amortizing noteholders'
benefit. Consequently, the main repayment source for this
transaction depends on the evolution and performance of the
royalties or the gas and oil production, not on Salta's
willingness or capability to pay debt.
* The strength of the underlying collateral (the gas and oil
royalties), which will be paid directly to an onshore Argentine
trust and held at Banco Macro S.A.
* Salta's sound fiscal performance and financial flexibility.
That said, Salta remains materially influenced by the central
government's policies because it depends significantly on
federal transfers (federal transfers equal 65% of Salta's total
revenue).
* The weak business risk profile of Salta's hydrocarbon industry,
which reflects a challenging institutional and regulatory
environment and its inability to successfully replace its
reserves over the past few years mainly due to the decrease in
oil and gas companies' investments in the industry.
"Salta's royalty generation depends on both the production and
price of the hydrocarbons it produces, especially natural gas.
Even though Salta's production is lower than our original
estimates as a result of the decrease in investments, crude oil
prices are considerably higher (despite export duties) and
natural gas prices, which dropped in 2002, are slowly and
slightly recovering. These higher prices have partially offset
the impact of lower production," S&P said.
=============
B E R M U D A
=============
GLOBAL FUTURES: Creditors' Proofs of Debt Due March 16
------------------------------------------------------
The creditors of Global Futures Fund XII Diversified Limited are
required to file their proofs of debt by March 16, 2012, to be
included in the company's dividend distribution.
The company commenced wind-up proceedings on Dec. 22, 2011.
The company's liquidator is:
Beverly Mathias
c/o Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9
Bermuda
GLOBAL FUTURES: Member to Receive Wind-Up Report on April 2
-----------------------------------------------------------
The member of Global Futures Fund II Diversified Limited will
receive on April 2, 2012, at 9:30 a.m., the liquidator's report
on the company's wind-up proceedings and property disposal.
The company commenced wind-up proceedings on Dec. 22, 2011.
The company's liquidator is:
Beverly Mathias
c/o Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9
Bermuda
MAN RMF MULTI-STYLE: Creditors' Proofs of Debt Due March 16
-----------------------------------------------------------
The creditors of Man RMF Multi-Style CHF Trading Ltd are required
to file their proofs of debt by March 16, 2012, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on Feb. 29, 2012.
The company's liquidator is:
Beverly Mathias
c/o Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9
Bermuda
MAN RMF MULTI-STYLE: Member to Receive Wind-Up Report on April 2
----------------------------------------------------------------
The member of Man RMF Multi-Style CHF Trading Ltd will receive on
April 2, 2012, at 9:30 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company commenced wind-up proceedings on Feb. 29, 2012.
The company's liquidator is:
Beverly Mathias
c/o Argonaut Limited
Argonaut House, 5 Park Road
Hamilton HM O9
Bermuda
===========
B R A Z I L
===========
FIBRIA CELULOSE: Plans Filing for US$750-Mil. Add-On Stock Sale
---------------------------------------------------------------
Cristiane Lucchesi at Bloomberg News reports that an unnamed
source said Fibria Celulose SA, the Brazilian pulp producer
that's selling assets to trim debt, may file for a US$750 million
additional stock sale as soon as March 8.
The firm plans to issue more shares as the current shareholders
aren't planning to sell their holdings, said the person, who
requested anonymity because the matter isn't public yet,
according to Bloomberg.
Bank of America Corp. and Banco Itau BBA SA are underwriting the
sale, which may happen in April, the source said, the report
notes.
Fibria Celulose S.A. a producer of market pulp in the world, with
pulp capacity of 5.25 million tons/year.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 12, 2012, Moody's Investors Service has revised the rating
outlook of Fibria Celulose S.A.to stable from positive and
affirmed the long-term ratings, including its Ba1 Corporate
Family Rating.
===========================
C A Y M A N I S L A N D S
===========================
BLODGETT ASSURANCE: Creditors' Proofs of Debt Due March 19
----------------------------------------------------------
The creditors of Blodgett Assurance Company, Ltd. are required to
file their proofs of debt by March 19, 2012, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on Feb. 16, 2012.
The company's liquidator is:
Marsh Management Services Cayman Ltd.
c/o Pierre Amparado
P.O. Box 1051 Governors Square
Bld 4, 2nd Floor
23 Lime Tree Bay Avenue
Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 949 7988
Facsimile: (345) 949 7849
BOAT CAPITAL: Creditors' Proofs of Debt Due March 20
----------------------------------------------------
The creditors of Boat Capital LDC are required to file their
proofs of debt by March 20, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Feb. 8, 2012.
The company's liquidator is:
Essa Zainal
c/o Patricia Tricarico
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
BOW CAPITAL: Creditors' Proofs of Debt Due March 20
---------------------------------------------------
The creditors of Bow Capital LDC are required to file their
proofs of debt by March 20, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Feb. 8, 2012.
The company's liquidator is:
Essa Zainal
c/o Patricia Tricarico
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
COREVEST MANAGEMENT: Creditors' Proofs of Debt Due March 19
-----------------------------------------------------------
The creditors of Corevest Management Limited are required to file
their proofs of debt by March 19, 2012, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Feb. 3, 2012.
The company's liquidator is:
Ogier
c/o Daniella Skotnicki
Telephone: (345) 815-1861
Facsimile: (345) 949-9877
c/o Ogier
89 Nexus Way Camana Bay
Grand Cayman KY1-9007
Cayman Islands
COREVEST PARTNERS: Creditors' Proofs of Debt Due March 19
---------------------------------------------------------
The creditors of Corevest Partners (Intl) Limited are required to
file their proofs of debt by March 19, 2012, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on Feb. 9, 2012.
The company's liquidator is:
Ogier
c/o Daniella Skotnicki
Telephone: (345) 815-1861
Facsimile: (345) 949-9877
c/o Ogier
89 Nexus Way Camana Bay
Grand Cayman KY1-9007
Cayman Islands
CTC OPPORTUNITIES: Creditors' Proofs of Debt Due March 19
---------------------------------------------------------
The creditors of CTC Opportunities Master Fund Ltd. are required
to file their proofs of debt by March 19, 2012, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Feb. 7, 2012.
The company's liquidator is:
Andrew Hall
440 S. LaSalle Street, 4th Floor
Chicago IL 60605
USA
EBB CAPITAL: Creditors' Proofs of Debt Due March 20
---------------------------------------------------
The creditors of EBB Capital LDC are required to file their
proofs of debt by March 20, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Feb. 8, 2012.
The company's liquidator is:
Essa Zainal
c/o Patricia Tricarico
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
EEA CAYMAN: Creditors' Proofs of Debt Due March 27
--------------------------------------------------
The creditors of EEA Cayman Limited are required to file their
proofs of debt by March 27, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Feb. 15, 2012.
The company's liquidator is:
Walkers Corporate Services Limited
Walker House, 87 Mary Street, George Town
Grand Cayman, KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
ISQUARE OFFSHORE: Creditors' Proofs of Debt Due March 29
--------------------------------------------------------
The creditors of Isquare Offshore Fund, Ltd. are required to file
their proofs of debt by March 29, 2012, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Feb. 3, 2012.
The company's liquidator is:
Peter Anderson
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
NAUTICAL CAPITAL: Creditors' Proofs of Debt Due March 20
--------------------------------------------------------
The creditors of Nautical Capital LDC are required to file their
proofs of debt by March 20, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Feb. 8, 2012.
The company's liquidator is:
Essa Zainal
c/o Patricia Tricarico
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
RUDDER CAPITAL: Creditors' Proofs of Debt Due March 20
------------------------------------------------------
The creditors of Rudder Capital LDC are required to file their
proofs of debt by March 20, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Feb. 8, 2012.
The company's liquidator is:
Essa Zainal
c/o Patricia Tricarico
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
STREAM CAPITAL: Creditors' Proofs of Debt Due March 20
------------------------------------------------------
The creditors of Stream Capital LDC are required to file their
proofs of debt by March 20, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Feb. 8, 2012.
The company's liquidator is:
Essa Zainal
c/o Patricia Tricarico
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
SURGINSURANCE LTD: Creditors' Proofs of Debt Due March 28
---------------------------------------------------------
The creditors of Surginsurance Ltd. are required to file their
proofs of debt by March 28, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Jan. 9, 2012.
The company's liquidator is:
Stuart Jessop
5th Floor, Windward 3
Regatta Office Park, West Bay Road
Grand Cayman KY1-1105
Cayman Islands
Telephone: 949 1599
VARIANT CAPITAL: Creditors' Proofs of Debt Due March 19
-------------------------------------------------------
The creditors of Variant Capital Partners Offshore Ltd. are
required to file their proofs of debt by March 19, 2012, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Feb. 15, 2012.
The company's liquidator is:
Brian Harris
Variant Capital, LP
2659 Townsgate Road, Suite 119
Westlake Village
CA 91361
USA
WATERFALL CAPITAL: Creditors' Proofs of Debt Due March 20
---------------------------------------------------------
The creditors of Waterfall Capital LDC are required to file their
proofs of debt by March 20, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Feb. 8, 2012.
The company's liquidator is:
Essa Zainal
c/o Patricia Tricarico
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
=============
J A M A I C A
=============
CARIBBEAN CEMENT: TCL Group Buckling Under US$280 Million Debt
--------------------------------------------------------------
RJR News reports that TCL Group, of which Caribbean Cement
Company Limited is a member, has been buckling under about
US$280 million in debt.
The TCL Group has been having dialogues with its creditors on
restructuring the debt after defaulting at the end of 2010,
according to RJR News. However, the report relates, the
situation has led to questions about the survivability of the TCL
Group.
RJR News notes that with questions over the group's survival
being raised, the same question with Carib Cement has been
raised. The report notes that Carib Cement does not currently
have the financial resources to pay either principal or interest
on the debt. The company simply has no money, RJR News says.
The report discloses that heavy losses in the last few years have
pushed the company into a desperate position.
RJR News notes ays that Carib Cement's latest financial result
shows losses which accumulated to more than US$1.4 billion
dollars in the first nine months of last year. And if cash is
king, there was nothing royal about Carib Cement's cash position
which was minus US$65 million at the end of September, RJR News
says.
The report discloses that sales have fallen from more than 800
thousand tonnes a year as late as 2006 to around 500 thousand
tonnes a year at present. But Carib Cement's General Manager
Anthony Haynes is upbeat about the future of the company, the
report adds.
Caribbean Cement Company Limited manufactures and sells cement.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 18, 2011, Caribbean Cement Company Limited has incurred a
JM$608.08 million loss in the three months ended April to June
2011 from JM$217.95 million loss in the same period last year.
The company incurred JM$857.56 million loss in the six months
ended January to June 2011 from a JM$213.40 million in the same
period 2010. Caribbean Cement posted a JM$1.58 billion loss in
the year ended 2010.
===========
M E X I C O
===========
BANOBRAS: Stand-Alone Baseline Credit Assessment Raised to 'Ba2'
----------------------------------------------------------------
Moody's Investors Service affirmed Banco Nacional de Obras y
Servicios Publicos, S.N.C.'s (Banobras) long and short term local
and foreign currency issuer ratings of Baa1 and Prime-2, as well
as its local currency debt ratings of Baa1/Prime-2. At the same
time, Moody's raised Banobras' stand-alone baseline credit
assessment (BCA) to Ba2, from Ba3.
Moody's de Mexico affirmed Banobras' National Scale long and
short term issuer and debt ratings of Aaa.mx and MX-1.
Ratings Rationale
Moody's noted that Banobras' Baa1 issuer and debt ratings
incorporate the Mexican government's irrevocable and enforceable
guarantee on all the development bank's obligations with third
parties, as established under Banobras' Organic Law. This
guarantee is indicative of Banobras' role as an instrument of
government-directed policy, and its debt obligations are included
in the calculation of Mexico's public debt. The issuer and debt
ratings incorporate four notches of uplift from the bank's Ba2
BCA based on the government's full guarantee.
Banobras' BCA was raised to Ba2 reflecting the bank's overall low
credit risk profile, which is derived from its important exposure
to Mexican government risk in the form of loans that are
ultimately guaranteed by the Mexican government, as well as
sizable holdings of government securities. As a result,
Banobras' asset quality indicators have been steadily good.
The higher BCA also incorporates the bank's stable financial
flexibility as indicated by a fairly liquid balance sheet and
high capital adequacy ratios, mainly composed of Tier 1 capital.
The high good quality capital provides for strong loss reserve
coverage.
Moody's nevertheless acknowledges that the bank's franchise value
is constrained by its limited-scope business profile as a result
of its public policy role to support solely infrastructure
projects. The bank's BCA also remains constrained by its
relatively modest profitability overall.
Banobras is headquartered in Mexico City, Mexico and is 100%
owned by the Mexican government. As of September 30, 2011,
Banobras reported MX$326 billion in assets and MX$20 billion in
equity.
The last rating action on Banobras occurred on December 23, 2011,
when Moody's assigned a long term local currency debt rating of
Baa1 and a long term National Scale debt rating of Aaa.mx to the
bank's senior debt (e.g. certificados bursatiles bancarios).
LOCATION BASED TECHNOLOGIES: Receives Mexico NYCE Approval
----------------------------------------------------------
Location Based Technologies Inc. announced the launch of its
PocketFinder GPS devices in Mexico, starting on March 1, 2012.
The Company received notification of Mexico's Normalizacion y
Certificacion Electronica (NYCE) laboratory certification and
approval for its PocketFinder Vehicle, Personal and Pet devices.
NYCE approval allows Location Based Technologies to officially
sell its PocketFinder devices in Mexico. The PocketFinder family
of GPS locators allows people to easily stay connected to almost
anyone or anything from any web-enabled device.
NYCE approval is accredited by the Mexican Accreditation Entity
(EMA) and authorized by the Federal Telecommunications Commission
(COFETEL).
"Expanding into Mexico is a major strategic milestone for our
company. This accreditation gives us the ability to begin
delivery of our products throughout Mexico," said Dave Morse, CEO
of Location Based Technologies. "While we continue to sell both
to consumers and commercially direct and through our sales
partner, Apple, we also appreciate the national and international
attention the devices are getting."
"For example," Morse continued, "ABC's 'The View' will feature
PocketFinder on Friday March 2. On March 7, nationally
syndicated television show 'EXTRA' will also air our device, both
via recognized tech personality Dr. Gadget. We are excited to
share our great products with their viewers."
PocketFinder Locator devices allow parents, pet or vehicle owners
to know the location of their family members and assets while
they are on the go - from almost anywhere at any time. The
rugged and waterproof PocketFinder Locators fit easily in a
pocket or backpack or on a pet's collar or harness. It provides
near real time information about the location of the device, 60+
days of history, speed and geo-fence notification.
An end user interface is easily accessed via a web browser or any
web-enabled phone and supports all PocketFinder products. The
products are built to work everywhere in the world where there is
a GSM wireless signal -- a highly mobile worldwide location
solution.
Location Based Technologies launched PocketFinder through Apple
Online and Apple Retail Stores, initially targeting the U.S. and
Canada. However, after significant international sales interest,
Location Based Technologies now has device activations in more
than 40 countries.
PocketFinder devices are available at Apple Retail Stores, the
Online Apple Store, and at www.PocketFinder.com. PocketFinder
GPS Personal and Pet locators cost $149 and include two free
months' service. Ongoing wireless network connectivity is $12.95
per month.
About Location Based Technologies
Headquartered in Irvine, Calif., Location Based Technologies,
Inc. (OTC BB: LBAS) -- http://www.locationbasedtech.com/--
designs, develops, and sells personal, pet, and vehicle locator
devices and services.
Location Based Technologies reported a net loss of $8.22 million
on $16,969 of total net revenue for the year ended Aug. 31, 2011,
compared with a net loss of $9.06 million on $67,090 of total net
revenue during the prior year.
The Company's balance sheet at Aug. 31, 2011, showed $9.40
million in total assets, $4.17 million in total liabilities,
$685,500 in commitments and contingencies and $4.53 million in
total stockholders' equity.
Comiskey & Company, in Denver Colorado, expressed substantial
doubt about the Company's ability to continue as a going concern
following the 2011 results. The independent auditors noted that
the Company has incurred recurring losses since inception and has
an accumulated deficit in excess of $37,000,000. There is no
established sales history for the Company's products, which are
new to the marketplace.
URBI DESARROLLOS: Fitch Affirms Ratings on IDR, Sr. Notes at BB-
----------------------------------------------------------------
Fitch Ratings has affirmed Urbi Desarrollos Urbanos, S.A.B. de
C.V.'s ratings as follows:
-- Foreign Currency Issuer Default Rating (IDR) at 'BB-';
-- Local Currency IDR at 'BB-';
-- National Long-term rating at 'A-(Mex)';
-- US$150 million senior notes due 2016 at 'BB-';
-- US$300 million senior notes due 2020 at 'BB-' ;
-- US$500 million senior notes due 2022 at 'BB-' ;
-- MXN600 million Certificados Bursatiles due 2014 at 'A-
(Mex)'.
Fitch has also affirmed the company's short-term rating at
'F2(Mex)'.
The Rating Outlook has been revised to Negative from Stable.
The Negative Outlook reflects the deterioration in the company's
free cash flow (FCF) generation and the concern that a continued
burning cash trend will negatively affect the company's credit
quality, resulting in leverage and liquidity levels not in line
with the rating category.
A negative rating action could be triggered by a deterioration of
the company's credit protection measures due to continued
sizeable negative free cash flow. Expectations by Fitch of total
adjusted debt to EBITDA being consistently at or beyond 4.0
times(x) will likely result in a downgrade. Conversely,
improvement in the company's working capital cycle resulting in
FCF trending to neutral supporting the expectation that total
adjusted debt to EBITDA will strengthen toward 3.0x over time,
could trigger a revision of the Rating Outlook to Stable.
Urbi's ratings continue to reflect its strong business position
as one of the top-3 largest players in the Mexican homebuilding
industry, solid leadership participation in the government-
related mortgage funding programs, consistent business strategy
oriented to the low-income segment, adequate geographic
diversification, significant land reserve, and solid liquidity.
The ratings are constrained by the company's high working capital
requirements, which reflect its business strategy of covering not
only the affiliated segment but also the non-affiliated segment
(25% of the company's total housing sales) and to grow
inorganically through opportunistic acquisition of housing
projects in progress (HPPs).
Ratings Under Pressure due to High Negative FCF:
During 2011, the company's FCF was negative MXN4.1 billion.
Including MXN1.6 billion in paid interests, this level of
negative FCF represents 25%, 74%, and 27% of the company's LTM
revenue, cash position, and total debt at the end of December
2011. The FCF calculation for the 2011 period considers cash
flow from operations after interest paid (MXN3.9 billion) less
capex (MXN159 million). Continued high negative FCF levels in
2012 resulting in higher leverage and weaker liquidity --
reflected in lower cash position or higher short-term debt levels
-- would likely result in a downgrade.
The company's negative trend in FCF has been driven by increasing
working capital. During the last 12 months ended in December
2011 Urbi increased its levels of total account receivables and
total inventories from MXN6.6 billion and MXN22.8 billion,
respectively, to MXN9.9 billion and MXM25.1 billion, in December
2011. The burning cash trend was further exacerbated during the
fourth quarter 2011 (4Q'11) with a significant pay down in
accounts payable due to the company's decision to realign its
pool of suppliers.
Increasing Leverage:
Urbi's growth strategy has been more aggressive since the second
half of 2010 and has resulted in an increase in the company's
total debt in order to cover higher working capital requirements
related to operations, as well as finance the integration of
HPPs. The company's total debt grew approximately 62% during the
last 18 months to MXN14.9 billion by the end of December 2011,
from MXN9.3 billion by the end of June 2010. Urbi's cash flow
generation, measured by EBITDA, was MXN4.4 billion during 2011,
representing an increase of only 14% over June 2010 (LTM EBITDA
of MXN3.9 billion). The company's gross leverage was 3.4x by the
end of December 2011, which compares negatively with 2.7x and
2.4x by the end of December 2010 and June 2010, respectively.
Absent the company's capacity or willingness to reduce its
working capital levels during 2012, Urbi's gross leverage levels
should trend toward 4x by the end of 2012.
Solid Liquidity, Manageable Debt Payment Schedule:
Positively incorporated in the rating affirmation is the
company's recent issuance of USD500 million senior notes due in
2022; the proceeds from the issuance were oriented to pay off
most of the company's short-term debt, thus enhancing its
financial flexibility. The company's cash position is expected
to be around MXN5 billion by the end of March 2012.
After this recent issuance URBI's short-term debt at the end of
March 2012 is expected to be around MXN1 billion, primarily
composed of used credit lines. Urbi's main debt maturities are
the MXN600 million Certificados Bursatiles due in 2014, the
USD150 million unsecured notes due in 2016, the USD300 million
unsecured notes due in 2020, and the USD500 million senior notes
due in 2022. Management has indicated that its mid to long-term
target of total debt to EBITDA is to be between 2.5x and 2.7x, in
conjunction with a stable cash position of MXN5.0 billion.
Revenues Expected to Grow between 10% and 13% in 2012:
The company's 2011 revenue was MXN16.3 billion, an increase of 9%
over 2010 reflecting increases of 1.7% and 56.5% in the company's
housing sales (HS) and housing related activities sales (HRAS)
business units, respectively. The company's average prices
remained relatively flat during 2011 reaching an average unit
price of MXN386 thousand (USD31 thousand).
For 2012, the company's operations are forecasted to continue
growing around 10% and 13% with the HS and HRAS business units
representing approximately 80% and 20% of the company's total
revenue, respectively. The company's 2012 total units sold is
expected to increase 9% to be around 37,000 (34,515 units sold in
2011), product mix by income segment should continue to be
oriented to the low-income segment, while the company's average
home price is expected to remain stable. Urbi's 2012 vertical
housing mix is expected to reach 65% versus 45% in 2011.
2012 EBITDA Margin Stable at 27%; Alternativa Urbi 25% of
Revenue:
The company's EBITDA margin is expected to remain stable at
around 27%, the highest margin in the sector. In terms of
mortgage origination, the company's providers should remain
stable with revenues oriented to Infonavit, Fovissste, Sociedad
Hipotecaria Federal S.N.C. (SHF)/Banks, and Alternativa Urbi
representing, respectively, approximately 55%, 10%, 10%, and 25%
of the company's total expected HS revenues in 2012. The ratings
also factor in potential acquisitions for a total amount of
MXN1.2 billion in HPPs as part of the company's 2012 inorganic
growth strategy.
=======
P E R U
=======
BANCO DE CREDITO: Moody's Affirms 'D+' Bank Fin'l Strength Rating
-----------------------------------------------------------------
Moody's Investors Service affirmed all of Banco de Credito del
Peru (BCP)'s ratings including its D+ bank financial strength
rating (BFSR), Baa2/Prime-2 long and short term local currency
deposit ratings, and Baa3/Prime-3 long and short term foreign
currency deposit ratings. At the same time, Moody's affirmed the
Baa3 local currency subordinated debt rating and the Baa2 and
Baa3 ratings of the foreign currency senior and subordinated debt
issued via its Panamanian Branch.
All the ratings have a stable outlook, with the exception of the
foreign currency deposit rating, which has a positive outlook, in
line with the positive outlook of the sovereign ceiling for
foreign currency deposits in Peru.
The following ratings were affirmed:
Banco de Credito del Peru:
Bank financial strength rating: D+, stable
Long term local currency deposit rating: Baa2, stable
Short term local currency deposit rating: Prime-2
Long term foreign currency deposit rating: Baa3, positive
Short term foreign currency deposit rating: Prime-3
Banco de Credito del Peru -- Panama Branch
Foreign currency senior debt rating: Baa2, stable
Foreign currency subordinated debt rating: Baa3, stable
Local currency subordinated debt rating: Baa3, stable
Ratings Rationale
The affirmation of BCP's ratings reflects the bank's growing core
profitability, increasing business diversification, well managed
asset quality and liquidity, and improving capitalization. BCP
continued to expand during 2011 and was able to slightly increase
its lending market shares amid intensifying competition from both
international and regional players. Moody's notes the bank's
earnings continued to benefit from healthy growth of net interest
income and fees during 2011, helping to offset the strong rise in
operating and provisioning expenses due to business expansion.
Moody's notes this growth is not without its challenges, however.
BCP's net interest margin (NIM) has come under pressure in recent
years due in part to its largely corporate loan mix, which yields
lower spreads, and the addition of a large amount of term debt to
support the bank's longer term mortgage and commercial lending
portfolios. Dampening margins across the system call into
question the risk-reward opportunities in corporate banking and
point to further shifts towards higher yielding business by the
banks in Peru.
BCP is looking to further expand its already extensive retail
franchise, but with greater emphasis on retail and consumer
lending, including mortgages and credit cards, as well as on
small business lending (SME) and microfinance. At the same time,
high growth in the higher risk consumer and SME lending segments
could change the bank's asset quality profile. On the positive
side, greater emphasis on these business lines should boost fee
capture and provide increased cross-selling opportunities.
On the corporate side, challenges include BCP's relatively high
and increasing single borrower concentrations, as well as the
bank's increasing appetite for corporate finance and investment
banking transactions, in Peru and in the region. While the bank
and the group have shown a disciplined approach to this business
so far, the recent acquisition of Colombia's brokerage house
Correval (which is pending of regulatory approval) exposes the
bank to the potential for greater asset quality risks and
earnings volatility. At this juncture, the bank's strong
earnings, reserve coverage and capitalization provide adequate
buffer to absorb unexpected losses, said Moody's.
BCP's Baa2 local currency deposit rating reflects one notch of
uplift as a result of Moody's assessment of a very high
probability of systemic support for the bank's obligations if
needed. The Baa3 foreign currency deposit rating remains
constrained by the Peruvian country ceiling for deposits, and has
a positive outlook in line with that of the ceiling.
Based in Lima, Peru, Banco de Credito del Peru reported US$25.5
billion in consolidated assets, US$2.3 billion in equity and
US$534 million in net income as of December 31, 2011. It was the
country's largest bank, with a 33% market share of loans and 34%
of deposits. BCP is the largest subsidiary of Credicorp Ltd.
(97.41% owned), a leading Peruvian financial services holding
company.
The last rating action on BCP was on March 21, 2011, when Moody's
affirmed the Baa3 long term foreign currency deposit rating and
changed the outlook to positive from stable.
===============================
T R I N I D A D & T O B A G O
===============================
TRINIDAD CEMENT: TTMA Calls for End to Workers Strike
-----------------------------------------------------
Darcel Choy at Trinidad and Tobago Newsday reports that the
Trinidad and Tobago Manufacturers' Association (TTMA) is calling
for an end to the strike by workers at Trinidad Cement Limited
(TCL), and the subsequent lock-out action initiated by the
company's management.
In a statement, the TTMA said that prolonged industrial action at
the company will have a deep and wide impact on this country's
economy, according to T&T Newsday. The report relates that they
called for the urgent intervention of Labor Minister, Errol
McLeod, in the matter.
In the meantime, the report discloses that Mr. McLeod invited
both sides -- labour and the company -- back to the bargaining
table to continue talks.
T&T Newsday discloses that Central Bank Governor Ewart Williams
hoped that there would be no delay in cement being imported into
the country, and major construction projects would not be
affected by the strike.
As reported in the Troubled Company Reporter-Latin America on
March 5, 2012, RJR News said that Trinidad Cement Limited will
import cement from Jamaica as the strike by workers keeps its
operations closed. It will also import supplies from Barbabos,
according to RJR News. The report noted that TCL said it had
arranged to get supplies from its Caribbean Cement subsidiary in
Jamaica and Arawak plant in Barbados to minimize the impact of
the industrial impasse. The report said that TCL said it will
distribute the product throughout Trinidad and Tobago so that
customers have access.
About TCL
Trinidad Cement Limited is a cement company and is the parent
company of Caribbean Cement Company Limited.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 5, 2011, RJR News reports that Trinidad Cement Limited has
now reached an agreement with its debtors on the terms and
conditions attached to the repayment of its debt. The agreement
will convert most of the company's debt into an 8-year facility,
to be paid, quarterly, from March 2013, according to RJR News.
The report related that deal also includes certain performance
criteria for repaying the debt and if those are not met, the
company will be penalized.
***********
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 * * *