/raid1/www/Hosts/bankrupt/TCRLA_Public/120723.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, July 23, 2012, Vol. 13, No. 145
Headlines
A R G E N T I N A
CENTRAL DE GRANOS: Requests Opening of Bankruptcy Proceedings
EMBALAJES INDUSTRIALES: Creditors' Proofs of Debt Due Aug. 15
FIDEICOMISO FINANCIERO: Moody's Rates ARS5.48MM Certs. 'Ca.ar'
GREHAN ALVELO: Creditors' Proofs of Debt Due Aug. 22
LINGUATEC LANGUAGE: Creditors' Proofs of Debt Due Sept. 18
MAILGRAF SA: Creditors' Proofs of Debt Due Sept. 17
MINERA ALTAIR: Creditors' Proofs of Debt Due Aug. 29
S' COMBRO SRL: Creditors' Proofs of Debt Due Sept. 18
SERUCIAL SA: Creditors' Proofs of Debt Due Sept. 17
TANGO GRAFICA: Creditors' Proofs of Debt Due Aug. 17
TOYOTA COMPANIA: Moody's Assigns Ba3 Debt Rating; Outlook Stable
B A R B A D O S
CLICO: Policyholders File Suit Against Executives & Regulators
REDJET: May Provide Ticket Refunds for Affected Passengers
B E R M U D A
MAPELEY ACQUISITION: Court to Hear Wind-Up Petition on Aug. 16
B R A Z I L
MINAS GERAIS: Moody's Assigns '(P)Ba1' Rating to Sr. Debentures
C A Y M A N I S L A N D S
AIO-AUS II: Creditors' Proofs of Debt Due Aug. 16
AIO-AUS LTD: Creditors' Proofs of Debt Due Aug. 16
ASPIN INVESTMENTS: Creditors' Proofs of Debt Due Aug. 16
BONITA IAM: Creditors' Proofs of Debt Due Sept. 21
BOTTERO INTERNATIONAL: Placed Under Voluntary Wind-Up
CRENDON LIMITED: Creditors' Proofs of Debt Due Aug. 9
CRENDON LIMITED: Shareholder to Hear Wind-Up Report on Aug. 10
GRF-AUS LTD: Creditors' Proofs of Debt Due Aug. 16
LEOPARD IAM: Creditors' Proofs of Debt Due Sept. 21
LOTA IAM: Creditors' Proofs of Debt Due Sept. 21
MAIA IAM: Creditors' Proofs of Debt Due Sept. 21
J A M A I C A
AIR JAMAICA: CAA Instructs CAL to Drop Airline's Brand
P E R U
BANCO DE LA NACION: Fitch Upgrades Viability Rating at 'BB+'
CORPORACION AZUCARERA: Fitch Puts Rating on $300MM Notes at 'BB'
P U E R T O R I C O
INVERSIONES ISLETA: Case Summary & 15 Unsecured Creditors
SANTANDER PR: Fitch Lowers Rating on Preferred Stock to 'BB'
M E X I C O
GRUPO POSADAS: Fitch Says Divestiture Benefits Credit Quality
X X X X X X X X
* BOND PRICING: For the Week July 16 to July 20, 2012
- - - - -
=================
A R G E N T I N A
=================
CENTRAL DE GRANOS: Requests Opening of Bankruptcy Proceedings
-------------------------------------------------------------
Central de Granos SRL requested the opening of bankruptcy
proceedings. The company defaulted on its payments last its
payments last February.
EMBALAJES INDUSTRIALES: Creditors' Proofs of Debt Due Aug. 15
-------------------------------------------------------------
Jose Luis Carriquiry, the court-appointed trustee for Embalajes
Industriales SA's bankruptcy proceedings, will be verifying
creditors' proofs of claim until Aug. 15, 2012.
Mr. Carriquiry will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 25 in Buenos Aires, with the assistance of Clerk
No. 50, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Jose Luis Carriquiry
Loyola 660
Argentina
FIDEICOMISO FINANCIERO: Moody's Rates ARS5.48MM Certs. 'Ca.ar'
--------------------------------------------------------------
Moody's Latin America has assigned ratings to the debt securities
and certificates of Fideicomiso Financiero Supervielle Personales
6. This transaction will be issued by Deutsche Bank (Argentina)
S.A., acting solely in its capacity as Issuer and Trustee.
Moody's notes that as of July 19, the securities contemplated by
this transaction have not yet settled. If any assumptions or
factors considered by Moody's in assigning the ratings change
before closing, Moody's could change the ratings assigned to the
notes.
- ARS35,081,600 in Class A Fixed Rate Debt Securities of
"Fideicomiso Financiero Supervielle Personales 6", rated Aaa.ar
(sf) (Argentine National Scale) and Ba3 (sf) (Global Scale, Local
Currency)
- ARS61,392,800 in Class B Floating Rate Debt Securities of
"Fideicomiso Financiero Supervielle Personales 6", rated Aaa.ar
(sf) (Argentine National Scale) and Ba3 (sf) (Global Scale, Local
Currency)
- ARS7,674,100 in Class C Fixed Rate Debt Securities of
"Fideicomiso Financiero Supervielle Personales 6", rated Caa3.ar
(sf) (Argentine National Scale) and Caa3 (sf) (Global Scale, Local
Currency)
- ARS5,481,500 in Certificates of "Fideicomiso Financiero
Supervielle Personales 6", rated Ca.ar (sf) (Argentine National
Scale) and Ca (sf) (Global Scale, Local Currency)
Ratings Rationale
The rated securities are payable from the cash flow coming from
the assets of the trust, which is an amortizing pool of
approximately 10,230 eligible personal loans denominated in
Argentine pesos, with a fixed interest rate, originated by Banco
Supervielle, in an aggregate amount of ARS109,632,943,12.
Overall credit enhancement is comprised of subordination: 68% for
the Class A Fixed Rate Debt Securities, 12% for the Floating Rate
Securities and 5% for the Class C Fixed Rate Debt Securities. In
addition the transaction benefits from various reserve funds and
excess spread.
Moody's considered the credit enhancement provided in this
transaction through the initial subordination levels for each
rated class, as well as the historical performance of
Supervielle's portfolio. In addition, Moody's considered factors
common to consumer loans securitizations such as delinquencies,
prepayments and losses; as well as specific factors related to the
Argentine market, such as the probability of an increase in losses
if there are changes in the macroeconomic scenario in Argentina.
These factors were incorporated in a cash flow model that takes
into account all the relevant features of the transaction's assets
and liabilities. Monte Carlo simulations were run, which
determines the expected loss for the rated securities.
In assigning the rating to this transaction, Moody's assumed a
triangular distribution for defaults (base default assumption) as
follows: (a) on the "Plan Sueldo" loans a minimum of 10%, a most
likely of 20% and a maximum of 30%, and (b) on the "Renta Alta"
loans, a minimum of 7%, a most likely of 12% and a maximum of 22%.
Moody's assumed a triangular distribution for prepayments with a
minimum of 10% a most likely of 15% and a maximum of 20%. These
assumptions are derived from the historical performance to date of
the Supervielle pools. Servicer default was modeled by simulating
the default of Banco Supervielle as the servicer consistent with
its current rating of B2/Aa3.ar. In the scenarios where the
servicer defaults, Moody's assumed that the defaults on the pool
would increase by 20 percentage points compared with the base
default assumption for the "Renta Alta" loans and 30 percentage
points for the "Plan Sueldo" loans
The model results showed 0.00% expected loss for Class A Fixed
Rate Debt Securities,1.95% for Class B Floating Rate Debt
Securities, a 39.29% for the Class C Fixed Rate Debt Securities
and 67.29% expected loss for the Certificates.
Moody's ran several stress scenarios, including increases in the
default rate assumptions. If default rates were increased 6% from
the base case scenario for the pool, the ratings of the Class B,
Class C and CP would be downgraded to B1 (sf), C (sf) and C (sf)
respectively.
Finally, Moody's also evaluated the back-up servicing arrangements
in the transaction. If Banco Supervielle is removed as servicer,
Deutsche Bank (Argentina) S.A. will be appointed as the back-up
servicer.
The main source of uncertainty for this transaction is the level
of delinquency of the loans assigned to the trust. A worsening in
macroeconomic conditions such as an increase in unemployment could
increase the losses of the pool, especially in the "Plan Sueldo"
loans. Also, the level of delinquency is correlated with Banco
Supervielle's ability to retain customers with "Cuenta Sueldo";
the loss of such a customer is usually followed by a rise in
delinquencies. This last factor is mitigated by commercial
agreements that tend to retain customers in the bank.
GREHAN ALVELO: Creditors' Proofs of Debt Due Aug. 22
----------------------------------------------------
Marta Cristina Lucena, the court-appointed trustee for Grehan
Alvelo y Asociados SRL's bankruptcy proceedings, will be verifying
creditors' proofs of claim until Aug. 22, 2012.
Ms. Lucena will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 11 in Buenos Aires, with the assistance of Clerk
No. 22, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Marta Cristina Lucena
Lavalle 1718
Argentina
LINGUATEC LANGUAGE: Creditors' Proofs of Debt Due Sept. 18
----------------------------------------------------------
Juan Angel Tsanis, the court-appointed trustee for Linguatec
Language Centers de Argentina SRL's reorganization proceedings,
will be verifying creditors' proofs of claim until Sept. 18, 2012.
Mr. Tsanis will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 17 in Buenos Aires, with the assistance of Clerk
No. 33, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
Creditors will vote to ratify the completed settlement plan
during the assembly on Aug. 26, 2013.
The Trustee can be reached at:
Juan Angel Tsanis
Teniente General Juan Domingo PerĒn 1410
Argentina
MAILGRAF SA: Creditors' Proofs of Debt Due Sept. 17
---------------------------------------------------
Juan Carlos Chaker, the court-appointed trustee for Mailgraf SA's
reorganization proceedings, will be verifying creditors' proofs of
claim until Sept. 17, 2012.
Mr. Chaker will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 19 in Buenos Aires, with the assistance of Clerk
No. 37, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
Creditors will vote to ratify the completed settlement plan
during the assembly on July 4, 2013.
The Trustee can be reached at:
Juan Carlos Chaker
Teniente General Juan Domingo PerĒn 315
Argentina
MINERA ALTAIR: Creditors' Proofs of Debt Due Aug. 29
----------------------------------------------------
Roberto Leibovicius, the court-appointed trustee for Minera Altair
SRL's bankruptcy proceedings, will be verifying creditors' proofs
of claim until Aug. 29, 2012.
Mr. Leibovicius will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 12 in Buenos Aires, with the assistance of Clerk
No. 24, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Roberto Leibovicius
Tucuman 1585
Argentina
S' COMBRO SRL: Creditors' Proofs of Debt Due Sept. 18
-----------------------------------------------------
Beatriz del Carmen Muruaga, the court-appointed trustee for S'
Combro SRL's bankruptcy proceedings, will be verifying creditors'
proofs of claim until Sept. 18, 2012.
Ms. Muruaga will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 1 in Buenos Aires, with the assistance of Clerk
No. 1, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Beatriz del Carmen Muruaga
Aguero 1290
Argentina
SERUCIAL SA: Creditors' Proofs of Debt Due Sept. 17
---------------------------------------------------
Miguel Pizzolo, the court-appointed trustee for Serucial SA's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until Sept. 17, 2012.
Mr. Pizzolo will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 23 in Buenos Aires, with the assistance of Clerk
No. 45, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Miguel Pizzolo
Hipolito Yrigoyen 1349
Argentina
TANGO GRAFICA: Creditors' Proofs of Debt Due Aug. 17
----------------------------------------------------
Juan Carlos Toledo, the court-appointed trustee for Tango Grafica
SA's bankruptcy proceedings, will be verifying creditors' proofs
of claim until Aug. 17, 2012.
Mr. Toledo will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance No. 23 in Buenos Aires, with the assistance of Clerk
No. 46, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.
The Trustee can be reached at:
Juan Carlos Toledo
Paraguay 729
TOYOTA COMPANIA: Moody's Assigns Ba3 Debt Rating; Outlook Stable
----------------------------------------------------------------
Moody's Investors Service assigned a Ba3 global local currency
senior debt rating to Toyota Compania Financiera Argentina's
expected debt issuance for an amount of up to Ar$30 million due in
12 months under its existing MTN program of Ar$400 million.
Moody's also assigned a Ba3 global local currency senior debt
rating to Toyota Argentina's expected issuance of up to Ar$90
million due in 21 months under the same program.
At the same time, Moody's Latin America assigned Aaa.ar local
currency debt ratings on the Argentinean National Scale to both
expected issuances.
The outlook on all ratings is stable.
The following ratings were assigned to Toyota Compania Financiera
Argentina:
AR$30 million expected issuance:
Global Local-Currency Debt Rating: Ba3, stable outlook
National Scale Local-Currency Debt Rating: Aaa.ar
AR$90 million expected issuance:
Global Local-Currency Debt Rating: Ba3, stable outlook
National Scale Local-Currency Debt Rating: Aaa.ar
Ratings Rationale
Moody's explained that the local currency senior debt rating
derives from Toyota's Ba3 global local currency deposit rating.
Moody's also noted that seniority was taken into consideration in
the assignment of the debt ratings.
Toyota Compania Financiera Argentina is headquartered in Buenos
Aires, Argentina, with assets of Ar$739 million and equity of
Ar$74 million as of March 31, 2012.
===============
B A R B A D O S
===============
CLICO: Policyholders File Suit Against Executives & Regulators
--------------------------------------------------------------
Caribbean360.com reports that after waiting for months with no
satisfaction from either the Barbados government or the judicial
managers charged with handling the affairs of Colonial Life
Insurance Company [Trinidad] Limited CLICO, the collective of
disenfranchised policyholders is turning to the law courts to help
them recover their investments.
This is according to the latest release from the Barbados
Investors and Policyholders Alliance (BIPA), the self-appointed
association formed by disaffected CLICO and British American
Insurance policyholders who have been unable to cash in their
investments or get annuities owed to them since the collapse of
the Trinidad-based CLICO Financial, which has had devastating
ripple effects across the investment climate of the Caribbean,
according to Caribbean360.com.
Caribbean360.com notes that the release stated that at its last
general meeting on July 11, the Barbados Investors and
Policyholders Alliance (BIPA) members present instructed the
group's attorney-at-Law Tariq Khan to invoke Pre-Action Protocols
against the directors of CLICO, the Office of the Supervisor of
Insurance (which has been subsumed into the Financial Service
Commission since last year) and others.
This, explained the release, was their first step in the process
of establishing who ought to be subject to legal action as a
result of the collapse of the insurance company which has left
many of the 25,000 Barbadian CLICO policyholders and their
families in a state of desperation and destitution,
Caribbean360.com discloses.
"Many of our members wanted to do this from the start . . . . but
we fully expected the Judicial Manager to initiate action of this
kind a long time ago, and kept recommending to our members that we
would explore all other avenues of persuasion and inclusion before
considering and initiating legal action such as this," the report
quoted BIPA Chairperson June Fowler as saying.
"But after over a year of trying to bring pressure via the media
for an early solution; putting up with a litany of unfulfilled
promises, empty reassurances, the 'silent' treatment from
Government, as well as resistance to BIPA's application to
participate in the Judicial Management process as a legitimate
intervener, the Alliance is unable to contain its frustration any
longer and has decided enough is enough!" Ms. Fowler stated.
REDJET: May Provide Ticket Refunds for Affected Passengers
----------------------------------------------------------
RJR News reports that passengers who were affected by the collapse
of Airone Caribbean/Airone Ventures Limited (REDjet) appear closer
to receiving ticket refunds.
The authorities in Guyana have moved to a private bank to secure
the bond which was lodged by the airline, according to RJR News.
Guyana's Stabroek newspaper said that 829 requests have so far
been made to the Ministry of Public Works, which has
responsibility for Transport, to get refunds from the airline, RJR
News notes.
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.
Incorporated in Barbados, the privately owned airline features a
fleet of McDonnell Douglas MD-82 and MD-83 aircraft.
* * *
As reported in the Troubled Company Reporter-Latin America on
March 26, 2012, RJR News related that REDjet's decision to
suspend all flights came a day after the airline announced the
addition of its new route to Antigua and Barbuda. REDjet
officials are calling on the Barbadian government for close to
$8,000,000 in assistance, and to receive the same subsidies as
other airlines, RJR News noted. The report disclosed that Mr.
Maharaj said governments cannot continue to expose themselves as
a guarantor to private enterprises.
=============
B E R M U D A
=============
MAPELEY ACQUISITION: Court to Hear Wind-Up Petition on Aug. 16
--------------------------------------------------------------
A petition to wind up the operations of Mapeley Acquisition
Holding Co. Limited will be heard before the Supreme Court of
Bermuda on Aug. 16, 2012, at 2:30 p.m.
===========
B R A Z I L
===========
MINAS GERAIS: Moody's Assigns '(P)Ba1' Rating to Sr. Debentures
---------------------------------------------------------------
Moody's America Latina has assigned provisional ratings of (P) Ba1
(sf) (Global Scale, Local Currency) and (P) Aa2.br (sf) (Brazilian
National Scale) to the senior debentures to be issued by MGI -
Minas Gerais Participacoes S.A., a securitization backed by a pool
of re-performing ICMS taxes owed by obligors to the State of Minas
Gerais.
Issuer: MGI - Minas Gerais Participacoes S.A.
Senior Debentures - (P) Ba1 (sf) (Global Scale, Local Currency) &
(P) Aa2.br (sf) (Brazilian National Scale)
Ratings Rationale
The provisional ratings of (P) Ba1 (sf) / (P) Aa2.br (sf) are
assigned to the 3rd Issuance of Senior Debentures Backed by Re-
performing ICMS Taxes and issued by MGI - Minas Gerais
Participacoes S.A. (MGI or the Issuer). The senior debentures are
issued in a single series and are not convertible into stock.
MGI is a public limited company controlled by the State of Minas
Gerais (or State of MG) which holds a direct participation of
99.8% in MGI as of March 31, 2012. The issuer rating of Estado de
MG is Ba1 in the global scale. MGI is not rated by Moody's.
The ratings of (P) Ba1 (sf) / (P) Aa2.br (sf) assigned to the
senior debentures are based mainly on the cash flows resulting
from the credit rights that back the debentures. In addition, the
ratings reflect the financial strength of the State of MG to make
the indemnification payments as described below.
The senior debentures will be guaranteed, via fiduciary
assignment, by the right to receive 60% of collections resulting
from payments of renegotiated taxes in the form of monthly
installments (credit rights). The credit rights will consist only
of renegotiated ICMS taxes (Imposto sobre Operacoes Relativas
Circulacao de Mercadorias e Prestacao Servicos de Transporte
Interestadual e Intermunicipal e de Comunicacao) owed by obligors
to the State of MG and that have been renegotiated, with
recognition of the ensuing debt by obligors.
The transaction contemplates an amortizing, static portfolio, with
a one-time sale of credit rights by the State of MG to the Issuer
at their outstanding par value. Under the sale agreement (contrato
de cessao onerosa) entered into between the State of MG and the
Issuer, the State of MG is required to make the Issuer whole via
indemnification payments for damages resulting from any future
renegotiation of credit rights sold to MGI.
The senior debentures have a maturity of 60 months. Interest
payments will be made during first 6 months followed by a monthly
scheduled payment of principal and interest. The interest, accrued
daily, will be equivalent to the Brazilian interbank deposit rate
(DI) plus a fixed coupon to be defined in the book building
process and subject to a cap of 3.5% per annum. The debentures
will be offered via public distribution (CVM 400). The
subordinated debentures will be fully retained by the State of MG.
The transaction contains triggers, that when breached, give rise
to an early evaluation event. Upon the occurrence of an early
evaluation event, investors may vote to place the transaction in
early liquidation and use all cash collected to pay down the
senior debentures with no cash released to the sponsor before full
amortization of senior debentures. The two performance triggers
are:
* Asset Coverage Ratio (ACR) of at least 200%, defined as the
ratio of performing ICMS Taxes over outstanding debt; to be
calculated by the fiduciary agent on a monthly basis. A trigger of
the Asset Coverage Ratio (ACR) will be considered an evaluation
event on any verification date.
* Debt Service Coverage Ratio (DSCR) of at least 180%, defined as
the ratio of monthly collections over the monthly principal and
interest payments on the senior debentures, to be calculated by
the fiduciary agent on a monthly basis. The trigger is considered
to be breached if it is not complied with for 2 consecutive
verification dates or 3 alternate verification dates in a 12-month
period.
To rate the transaction, Moody's has analyzed origination and
performance data of the renegotiated ICMS tax programs of overdue
taxes owed to the State of Minas Gerais. The data was reviewed and
compiled by KPMG Auditores Independentes (KPMG).The analysis
covers the period starting in October 2004 and ending in January
2012. The analysis is separated in static quarterly vintages of
origination. Performance data of each vintage is provided on a
monthly basis.
The transaction does not contain eligibility criteria; instead, it
is envisaged that the entire outstanding amount of re-performing
ICMS taxes of the State of MG (net of Excluded Cash Flows, as
defined below) is sold to MGI to back the debt issuance. For
modeling assumptions, Moody's assumed (i) the total issuance of
senior debentures capped at BRL316 million and (ii) a minimum of
BRL1,108 million of credit rights in respect to installments due
prior to scheduled maturity of senior debentures on month 60.
Interest rate risk and asset/liability mismatches
According to information received from the arrangers, the credit
rights are referenced to SELIC whereas the senior debentures have
their interest rate referenced to the CDI (interbank deposit)
rate. As the CDI closely tracks the SELIC, interest rate risk in
the transaction is minimal.
Commingling risk is limited as:
* The obligors make installment payments in one of the financial
institutions responsible for receipt of payments.
* The cash flows received from the credit rights are deposited in
a linked master account, in the name of Secretaria de Estado de
Fazenda de Minas Gerais, whereby movements of cash are exclusively
made by Itau Unibanco S.A. in its role as Master Servicer (Banco
Centralizador) in the transaction.
* The Master Servicer (Itau Unibanco) will monitor and segregate
cash flows belonging to the Municipalities of the State of MG, to
FUNDEB, including legal expenses, whereby such segregated cash
flows represent 40% of the cash flows received from the credit
rights (Excluded Cash Flows), and which also have been deposited
in the Master Account, to be subsequently remitted to an account
of the State of Minas Gerais. The cash flows resulting from the
credit rights, net of Excluded Cash Flows, will be automatically
transferred by the Master Servicer to the Receipt Account, in the
name of the Issuer; the Master Servicer with authorization of the
Fiduciary Agent will be the only party able to transfer funds in
this account. Such cash flows should be automatically transferred
the following business day from the Receipt Account to the Master
Account.
Among the main transaction risks and concerns are:
* Transaction is dependent on the State of Minas Gerais to provide
transaction parties (Fiduciary Agent, Master Servicer) with timely
and precise asset information such as (i) the occurrence of any
tax renegotiations with borrowers, (ii) data necessary for the
calculation of indemnification payments following the actual tax
renegotiation with borrowers, (iii) information allowing
transaction parties for correct calculation of transaction
triggers, including the ACR and DSCR triggers. As a mitigant
Moody's notes that Itau Unibanco as master servicer will be
continuously reviewing the cash flows of the transactions
partially mitigating the reliance on the State of MG as sole
information provider on the performance of underlying assets.
Moody's also notes that the final transaction rating is no higher
than the rating of the State of MG.
* Potential creation of new tax renegotiation programs: Moody's
review of KPMG data suggests that in the immediate months
following the past two tax renegotiation programs, the bulk of
obligors in previous programs opted to further renegotiate the
loans one more time. For example, 6 months subsequent to the
renegotiation program launched in Dec/07, a 80% fall in
outstanding loan balance was observed. Similar statistic was found
for the program launched in May/10.
As a mitigant Moody's notes that (i) any potential new tax
renegotiation program leading to actual renegotiations would
trigger mandatory indemnification payment from the State of MG to
compensate MGI and/or debenture investors for damages, and (ii)
should the State of MG not pay indemnification to MGI and/or
debenture investors, the resulting likely MGI debenture default
would also risk triggering cross default with other outstanding
debt of the State of MG (according to information received by the
arrangers), thereby incentivizing the State of MG to honor its
obligations under indemnification provision and/or repurchase
option of renegotiated assets.
In assigning the (P) Ba1 (sf) / (P) Aa2.br (sf) ratings to the
senior debentures of the transaction, Moody's considered the
principal source of credit enhancement -- initial
overcollateralization of 71% and minimum ongoing
overcollateralization of 50% (or 200% Asset Coverage Ratio) -- in
a stressed scenario with view of historical performance of the
assets.
Moody's considered a stressed cash flow derived from the:
* Scheduled future cash flows of target portfolio (contractual
scheduled amortization assuming zero losses) to be sold as
presented in underlying KPMG report;
* Stressed mortality curve, which reflects expected worst case
portfolio losses of the target portfolio to be sold and
incorporating the effect of seasoning. Moody's assumes that any
arrears of installments of renegotiated and re-performing ICMS
taxes above 3 months trigger exclusion from the program (contract
mortality) hence producing a loss of the cash flows derived from
the contract.
Sensitivity and Break-Even Analysis
In order to calculate a break-even analysis, Moody's has further
stressed the conservative base case assumptions, applying a stress
factor in the form of a haircut on projected base case cash flows.
The stress factor was increased up to the point where the senior
debenture would start to suffer a loss. Given the significant
credit enhancement derived from the transaction entering into
early liquidation, whereby all stressed asset cash flows are used
to service the senior debenture first, this break-even analysis
was repeated for the various months in which the early liquidation
event would come into effect.
For example, if the transaction never enters into early
liquidation, cash flows could withstand an additional 28% decline
over Moody's base case cash flows. Similarly, the base case cash
flows could decline by 54%, without losses to investors, assuming
that the transaction enters into early liquidation the month after
closing.
Moody's notes that the stressed base case cash flows are
conservatively sized as these have been derived by observing
performance of the worst case historical vintages.
Concentration risk
The concentration risk in the transaction is mitigated by the
coverage levels. Should largest 30 obligors that together
represent circa 35% of total assets default simultaneously the
month after closing, break-even analysis indicates that the
transaction could continue to pay its scheduled payments if
investors place the transaction into early liquidation in any
month prior to month 40.
===========================
C A Y M A N I S L A N D S
===========================
AIO-AUS II: Creditors' Proofs of Debt Due Aug. 16
-------------------------------------------------
The creditors of AIO-AUS II, Ltd. are required to file their
proofs of debt by Aug. 16, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on June 25, 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
AIO-AUS LTD: Creditors' Proofs of Debt Due Aug. 16
--------------------------------------------------
The creditors of AIO-AUS, Ltd. are required to file their proofs
of debt by Aug. 16, 2012, to be included in the company's dividend
distribution.
The company commenced liquidation proceedings on June 25, 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
ASPIN INVESTMENTS: Creditors' Proofs of Debt Due Aug. 16
--------------------------------------------------------
The creditors of Aspin Investments Limited are required to file
their proofs of debt by Aug. 16, 2012, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on June 25, 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
BONITA IAM: Creditors' Proofs of Debt Due Sept. 21
--------------------------------------------------
The creditors of Bonita IAM Limited are required to file their
proofs of debt by Sept. 21, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on June 25, 2012.
The company's liquidator is:
Westport Services Ltd.
c/o Bonnie Willkom
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
PO Box 1111 Grand Cayman KY1-1102
Cayman Islands
BOTTERO INTERNATIONAL: Placed Under Voluntary Wind-Up
-----------------------------------------------------
On June 7, 2012, the Grand Court of the Cayman Islands entered an
order to wind up the operations of Bottero International.
The company's liquidator is:
Nathan Stubing
Telephone: (345) 946 7853
Facsimile: (345) 946 7854
P.O. Box 888 Grand Cayman, KY1-1103
Cayman Islands
CRENDON LIMITED: Creditors' Proofs of Debt Due Aug. 9
-----------------------------------------------------
The creditors of Crendon Limited are required to file their proofs
of debt by Aug. 9, 2012, to be included in the company's dividend
distribution.
The company commenced liquidation proceedings on June 12, 2012.
The company's liquidator is:
E. Andrew Hersant
Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510 Grand Cayman KY1-1104
Cayman Islands
CRENDON LIMITED: Shareholder to Hear Wind-Up Report on Aug. 10
--------------------------------------------------------------
The shareholder of Crendon Limited will receive on Aug. 10, 2012,
at 9:00 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.
The company commenced liquidation proceedings on June 12, 2012.
The company's liquidator is:
E. Andrew Hersant
Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510 Grand Cayman KY1-1104
Cayman Islands
GRF-AUS LTD: Creditors' Proofs of Debt Due Aug. 16
--------------------------------------------------
The creditors of GRF-AUS, Ltd. are required to file their proofs
of debt by Aug. 16, 2012, to be included in the company's dividend
distribution.
The company commenced liquidation proceedings on June 25, 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
LEOPARD IAM: Creditors' Proofs of Debt Due Sept. 21
---------------------------------------------------
The creditors of Leopard IAM Limited are required to file their
proofs of debt by Sept. 21, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on June 25, 2012.
The company's liquidator is:
Westport Services Ltd.
c/o Bonnie Willkom
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
PO Box 1111 Grand Cayman KY1-1102
Cayman Islands
LOTA IAM: Creditors' Proofs of Debt Due Sept. 21
------------------------------------------------
The creditors of Lota IAM Limited are required to file their
proofs of debt by Sept. 21, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on June 25, 2012.
The company's liquidator is:
Westport Services Ltd.
c/o Bonnie Willkom
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
PO Box 1111 Grand Cayman KY1-1102
Cayman Islands
MAIA IAM: Creditors' Proofs of Debt Due Sept. 21
------------------------------------------------
The creditors of Maia IAM Limited are required to file their
proofs of debt by Sept. 21, 2012, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on June 25, 2012.
The company's liquidator is:
Westport Services Ltd.
c/o Bonnie Willkom
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
PO Box 1111 Grand Cayman KY1-1102
Cayman Islands
=============
J A M A I C A
=============
AIR JAMAICA: CAA Instructs CAL to Drop Airline's Brand
------------------------------------------------------
Caribbean360.com reports that the Civil Aviation Authority (CAA)
has instructed Caribbean Airlines Limited to drop its Air Jamaica
Limited branding from its aircraft.
Trinidad Express News said that CAL has been informed that the use
of the Air Jamaica brand does not comply with CAL's airline
operator certificate and, despite the acquisition of Air Jamaica's
routes, according to Caribbean360.com. The report relates that
Trinidad Express reported that CAL is not licensed to operate the
two brands, although it has been doing so for over a year.
Caribbean360.com says that for CAL to use the Air Jamaica brand,
it would in fact have to register a new airline in the name of Air
Jamaica.
However, Caribbean360.com notes that although CAL is now racing to
comply, reports are that this is not a new development as the CAA
notified the Trinidadian airline of the disparity a few months ago
as it sought to improve its systems ahead of a planned audit by
the international Federal Aviation Authority (FAA).
The report notes that CAL has to repaint its six Air Jamaica
planes at a reported cost of US$60,000 per aircraft.
Caribbean360.com discloses that CAL's investment in Air Jamaica
has already been costly for the Trinidadian airline, reportedly
requiring CAL to liquidate US$149 million of its investments
already to carry the cost of the ailing Jamaica-based airline.
The government of Air Jamaica owns 16% of CAL, following the
consummation of a shareholders' agreement which was signed on
May 26, 2011, and which cost CAL US$50 million to acquire the
airline's routes, Caribbean360.com relays.
Caribbean360.com discloses that apart from that, former finance
minister Winston Dookeran disclosed to Parliament in May that Air
Jamaica recorded an unaudited loss of US$38.1 million ($245.2
million) for 2011.
About Air Jamaica
Headquartered in Kingston, Jamaica, Air Jamaica Limited --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 23, 2010, Trinidad and Tobago Caribbean Airline on May 1,
2010, acquired Air Jamaica for US$50 million and operated six Air
Jamaica aircraft and eight of its routes. Jamaica got a 16%
stake in the merged operation, with CAL owning 84%. According to
a TCR-LA report on June 29, 2009, RadioJamaica News said the
Jamaican government indicated it will name a buyer for cash-
strapped Air Jamaica. RadioJamaica related the airline has been
hemorrhaging over US$150 million per annum and the government has
had to foot the massive bill. In addition, RadioJamaica said,
Air Jamaica currently has over US$600 million in loans
outstanding.
=======
P E R U
=======
BANCO DE LA NACION: Fitch Upgrades Viability Rating at 'BB+'
------------------------------------------------------------
Fitch Ratings has upgraded Banco de la Nacion's (BN) viability
rating (VR) to 'bb+' from 'bb' and affirmed the rest of BN's
ratings as detailed at the end of this release.
The upgrade of BN's VR reflects the stability of the bank's
strategy and business plan in spite of the 2011 change in Peru's
president, which also lead to a change in the bank's board of
directors and CEO. In spite of the presidential change last year,
no negative effects on the bank's financial performance due to
political influence on its operations were seen. BN's financial
performance has shown a solid capital base, good asset quality,
ample reserves, sound margins, moderate but steady profitability
and high liquidity, all factors considered in the bank's VR.
However, BN's VR is still tempered by the risk of potential
political influence cannot be completely ruled out, the bank's
high exposure to the government on both sides of the balance
sheet, its narrow product offering and aging IT platform.
BN's Issuer Default Ratings (IDRs) reflect the support it would
receive from its owner, the Republic of Peru, should it be
required. The Rating Outlook on BN's IDRs is aligned with the
Sovereign rating of Peru. Besides BN's key role within the
government's operations, its status as an autonomous government
agency and an explicit provision in its inception law states that
the bank enjoys the full faith and credit of the Republic of Peru;
this underpins the bank's support and support floor ratings.
BN's IDRs would move in line with sovereign ratings; hence,
downward risk for BN's IDRs is limited given Peru's economic
prospects but its viability rating could be pressured by dismal
results, weak asset quality or significantly lower capital levels.
BN's good performance in 2011 and 1Q2012 was driven by strong loan
growth, improving margins, which are well above the industry
average as they benefit from the bank's low cost deposit base, and
growing non-interest revenues, which compensated for higher
administrative expenses; credit cost remained moderate. ROAA
improved to 2.22% at Dec. 31, 2011 (1.85% in 2010) while ROAE
reached 27.28% at the same date (22.35% a year earlier), a very
good level that compares well to its regional peers.
With the Peruvian economy growing at full steam, and government
demand for credit picking up, BN expects to grow its loan
portfolio moderately during 2012. Loan growth along with
improving non-interest revenues should offset slightly narrower
margins due to expected lower interest rates and underpin BN's
operating revenues while operating costs should stabilize
(investments are expected to be amortized over several years) and
loan loss provisions should grow in line with loans. Hence, the
bank could improve its efficiency and profitability, but gains are
not expected to be rapid, as the bank will take some time to
overcome the lack of a modern IT platform and a strong product
lineup. Profitability should improve moderately, with an ROAA of
above 2% and an ROAE at about 25%
BN is Peru's financial agent and largest government-owned
commercial bank that offers banking services to government
agencies and public servants and plays an important role in the
government's economic policies, especially in developing Peru's
most remote areas where private sector banks are not present
Fitch has taken the following rating actions for BN:
-- Long-term foreign currency Issuer Default Rating (IDR)
affirmed at 'BBB';
-- Short-term foreign currency IDR affirmed at 'F2';
-- Long-term local currency IDR affirmed at 'BBB+';
-- Short-term local currency IDR affirmed at 'F2';
-- Viability Rating upgraded to 'bb+' from 'bb';
-- Support rating affirmed at '2';
-- Support floor affirmed at 'BBB'.
The Rating Outlook is Stable.
CORPORACION AZUCARERA: Fitch Puts Rating on $300MM Notes at 'BB'
----------------------------------------------------------------
Fitch Ratings has assigned a 'BB' expected rating to Corporacion
Azucarera Del Peru S.A.'s (Coazucar) proposed US$300 million,
senior unsecured notes due 2022. Proceeds from the debt issuance
will be used to repay debt and for general corporate purposes.
Fitch has also assigned the following ratings:
-- Local and Foreign Currency Issuer Default Rating (IDR) 'BB';
-- Senior unsecured debt 'BB'.
The Rating Outlook is Stable.
The ratings reflect Coazucar's:
-- Strong business position as the largest sugar producer in
Peru; its low cost structure and high operating margins
stemming from its operation's proximity to the sugar cane
fields; low dependence on third party cane producers; and
some of the world's highest sugar cane yields per hectare as
a result of its favorable geographic location that allows for
a continued growing period.
-- Adequate liquidity, improved capital structure and moderate
leverage ratio pro forma the bond issuance with adjusted Debt
to EBITDA of 2.3x, which is below the company's long-term
target of 2.5x. The company should be able to further reduce
its leverage through growing profitability, while nominal
debt will remain largely unchanged for the next three years,
reflecting low debt maturities and negative FCF generation as
a result of elevated expansion capex.
The ratings also incorporate:
-- Coazucar's product concentration in sugar, which currently
accounts for 90% of the company's revenue;
-- The volatility of earnings typical for a commodity based
business; exposure to currency exchange fluctuations and the
event risk associated with the natural phenomenon El Nino;
-- Coazucar's acquisitive nature, mitigated by its successful
track record of integrating and improving past acquisitions.
As acquisition opportunities diminish, the company will seek
growth through green field investments, such as the Olmos
Project that would allow the company to increase its owned
lands and sugar cane production capacity by +17% in a bid to
capture the market share in Peru that is currently serviced
by imports. Nonetheless, acquisitions remain an integral
part of Coazucar's strategy.
Rating Triggers:
A positive rating action could be triggered by a significant and
sustained leverage decrease to about 1x in mid cycle. A negative
rating action could occur if the positive operational results
Fitch expects fail to materialize and/or if leverage increased and
remained at more than 3.5x on a consistent basis as a result of a
large debt-financed acquisition or asset purchase or as a result
of operational deterioration.
Strong Business Position:
Coazucar is the largest sugar producer in Peru with 46% market
share in the country. It has high operating margins (EBITDA Mgn
of 43% in 2011 pro forma the acquisitions in Ecuador and Argentina
- operations with lower margins) and a low-cost structure that
benefit from its operations' proximity to the sugar cane fields
and a degree of atomization of the sugar cane harvest (55%).
The sugar producers in Peru benefit from continued sugarcane
production due to its geographical location near the equatorial
line that results in one of the highest yields per hectare
worldwide. While the sunshine and temperature are consistently
beneficial to sugar cane production, the sugar cane yields vary
depending on water availability. In the case of Coazucar's main
operational companies Casa Grande and Cartavio, water comes from
the nearby Chicama river during the first part of the year and
from water wells and reservoirs in the latter. The ratings
consider Coazucar's investments in water sources that allow it to
somewhat mitigate its reliance on natural water conditions and
improve production performance.
In addition, Coazucar's recent acquisitions of sugar mills in
Ecuador (30% of the local market) and Argentina diversify its
production base and expand its sugar offering with organic sugar
from Argentina that represents between 60 and 90% of this division
sales (90% as of June 2012) and is exported to the EU, USA, Canada
and the asian market with premium prices.
Leverage and Capital structure:
Pro/forma the transaction, Coazucar's leverage will stand at 2.1x.
The company should be able to quickly reduce leverage to its
current pro forma level of 1.3x through improving operational
performance. Coazucar's total adjusted debt will amount to S$1.4
bn ($528 million) as of March 31, 2012 and pro forma the
transaction, while short-term debt will be only S$107 million ($40
million), 8% of total debt.
The preponderance of the debt will reside at the holding company
level. Pro forma the transaction, the notes will represent about
60% of Coazucar's debt and will be guaranteed on a senior
unsecured level by Coazucar's main operating subsidiaries with the
exception of Casa Grande which guarantee will be up to $150
million. Fitch notes that this structure allows for a debt
increase at the Casa Grande level that if utilized completely
would result in structurally subordinating the notes behind a
significant amount of debt without violating the notes most
restrictive financial covenants. However, Fitch believes that the
current debt structure will remain largely unchanged and has
assigned its ratings based on that.
Liquidity and FCF generation:
Coazucar's liquidity will be adequate. It will rely primarily on
cash on hand of USD 249 million pro forma the transaction at the
end of the first quarter of 2012. Of those, $177 million are
committed to CapEx. The remaining $72 million will cover short-
term maturities of $40 million about 1.8x.
FCF will be negative for the next three years due to the large
Capex. Coazucar is planning to invest $300 million in the
greenfield project Olmos. A letter of credit for $70 million has
already been issued for the land acquisition and the payment will
be covered with proceeds from the notes. Additional $400 million
will be invested in maintenance, machinery purchases, irrigation
systems and water sources development. Fitch notes positively
that the maintenance Capex is a relatively small portion of the
overall projected CapEx which allows the company a certain degree
of flexibility. Coazucar has been FCF positive in the past
several years (with the exception of 2010) and have gone through a
consistent deleveraging process.
Product Concentration and Earnings Volatility:
The ratings incorporate risks associated with product
concentration in Sugar which represents 90% of Coazucar's pro
forma revenue for 2011. The remaining 10% are split between
production of alcohol, and molasses and energy cogeneration.
Fitch notes that the company has the capacity to increase alcohol
production above its current levels but has chosen to concentrate
on sugar production instead, taking advantage of the strong sugar
prices in the international markets and Peru in the past couple of
years.
By nature, the sugar industry is volatile and exposed to
fluctuations in commodity prices. Coazucar's profit margins are
affected by factors beyond the company's control: domestic and
international supply and demand imbalances resulting from weather
conditions, global economic growth, changes in consumption habits,
and government-imposed trade restrictions. Since sugar prices in
Peru generally track the international price that is dollar
denominated, and Coazucars operating expenses are almost entirely
in Soles the company is exposed to currency risk.
Sugar producers in Peru are also exposed to the effects of the
natural phenomenon El Nino, which on average occurs every 10 years
and floods severely both sugar fields and transportation
infrastructure, and typically results in lower crop and higher
sugar prices in Peru at least in the short term. Substitution
with imported sugar is made more difficult due to the flooded
infrastructure.
Acquisitive nature and Limitations to Growth:
The company's aggressive attitude toward growth through
acquisitions amplifies its commodity risk profile. Past
acquisitions have been financed by a combination of debt and
internally generated funds. While its business profile benefits
from improved diversification through past acquisitions, the risk
of additional acquisitions remains.
Coazucar currently has over 80 thousand hectares of arable land
and in 2012, added 14.5k hectareas in Olmos land auction. Its
growth opportunities in Peru through acquisitions are diminishing.
As the company seeks expansion abroad its margins will likely
compress as integration risk somewhat increase.
Strong Equity Holder:
While the Coazucar's rating is assigned on a standalone basis,
Fitch views positively the fact that the company is part of Grupo
Gloria, a conglomerate of companies owned by the Rodriguez family
that has a tangible presence and long tradition of operations in
Peru and the region, being the leader in every sector it
participates.
=====================
P U E R T O R I C O
=====================
INVERSIONES ISLETA: Case Summary & 15 Unsecured Creditors
---------------------------------------------------------
Debtor: Inversiones Isleta Marina, Inc.
aka Isleta Marina
P.O. Box 428
Puerto Real, PR 00740
Bankruptcy Case No.: 12-05592
Chapter 11 Petition Date: July 16, 2012
Court: U.S. Bankruptcy Court
District of Puerto Rico (Old San Juan)
Debtor's Counsel: Antonio I. Hernandez Santiago, Esq.
ANTONIO I. HERNANDEZ SANTIAGO LAW OFFICE
P.O. Box 8509
San Juan, PR 00910-0509
Tel: (787) 250-0575
E-mail: ahernandezlaw@yahoo.com
Estimated Assets: $1,000,001 to $10,000,000
Estimated Debts: $1,000,001 to $10,000,000
A copy of the Company's list of its 15 largest unsecured creditors
filed with the petition is available for free at:
http://bankrupt.com/misc/prb12-05592.pdf
The petition was signed by Luis C. Trigo Vela, vice-president.
SANTANDER PR: Fitch Lowers Rating on Preferred Stock to 'BB'
------------------------------------------------------------
Fitch Ratings has downgraded the long- and short-term Issuer
Default Ratings (IDRs) of Santander Bancorp (SBP) to 'BBB/F2' from
'A-/F1'.
The downgrade was a result of Fitch's downgrade of the long-term
IDR of SBP's parent company, Banco Santander, on June 11, 2012.
SBP's IDRs are correlated to Banco Santander's, and changes in
Banco Santander's IDRs result in changes to SBP's.
The Rating Outlook for SBP is Negative, which is in line with
Banco Santander's Outlook.
Fitch affirmed SBP's standalone rating, the Viability Rating (VR),
at 'bb+'. The affirmation is supported by the company's sound
operating performance and solid capital position while operating
in the challenging Puerto Rican market. Similarly to local peers,
asset quality has been a challenge given the macro environment in
Puerto Rico as evidenced by high unemployment of 16% and continued
negative Gross National Product (GNP).
Although Fitch is concerned with SBP's elevated levels of non-
performing assets (NPAs) at 7.24%, it compares well to local peers
with an average NPA of 13.95% at 1Q'12. SBP's loan portfolio
exhibits better credit performance due to more conservative
underwriting and overall risk management practices (including a
relatively low concentration in construction lending).
Additionally, the company continues to build its capital base
improving its tangible common equity ratio to 8.48% for 1Q'12
compared to 7.41% for 1Q'11 attributed to internal capital
generation.
Fitch believes there is limited upside to SBP's VR given the
concentration in its loan book by product and geography and
relatively small franchise. The VR could be negatively affected
if loan portfolio quality deteriorates, particularly if
significant operating losses emerge and the company's capital
position is eroded.
SBP's IDRs would be negatively affected if the parent bank's
ratings are downgraded or Fitch's view of support changes.
Although the Support Rating was downgraded to '2', Fitch believes
there is still a high probability of support for SBP by its parent
in the event of need.
SBP is the third largest bank in Puerto Rico by total assets and
by deposits with approximately an 11% share. SBP offers banking
and other financial services through its subsidiaries, Banco
Santander Puerto Rico, Santander Financial Services, Santander
Securities Corporation among other smaller subsidiaries. SBP is
wholly owned by Banco Santander following the completion of a
tender offer for remaining publicly owned shares in 2010.
Fitch has taken the following rating actions:
Santander Bancorp
-- Long-term IDR downgraded to 'BBB' from 'A-'; Outlook
Negative;
-- Short-term IDR downgraded to 'F2' from 'F1';
-- Viability Rating affirmed at 'bb+';
-- Support Rating downgraded to '2' from '1';
-- Subordinated debt downgraded to 'BBB-' from 'BBB+'.
Banco Santander Puerto Rico
-- Long-term IDR downgraded to 'BBB' from 'A-'; Outlook
Negative;
-- Short-term IDR downgraded to 'F2' from 'F1';
-- Viability Rating affirmed at 'bb+';
-- Support Rating downgraded to '2' from '1';
-- Long-term deposit rating downgraded to 'BBB+' from 'A';
-- Short-term deposit rating downgraded to 'F2 from 'F1'.
Santander PR Capital Trust I
-- Preferred stock downgraded to 'BB' from 'BB+'.
===========
M E X I C O
===========
GRUPO POSADAS: Fitch Says Divestiture Benefits Credit Quality
-------------------------------------------------------------
Fitch Ratings believes that Grupo Posadas S.A.B. de C.V.'s
(Posadas) announced divestiture of its South American assets
benefits the issuer's credit quality. Posadas expects to use net
proceeds of US$245 million, as some funds would be deposited into
an escrow account, to reduce short-term indebtedness. According
to the 2015 notes indenture, proceeds from an asset sale can be
used for debt repayment if it is done within 365 days of the sale.
The Negative Rating Watch on Posadas' ratings is likely to be
removed once the transaction is concluded and proceeds are
received. Fitch will then assess the ratings to reflect the new
capital structure and expectations related to liability management
of its 2015 notes.
On a pro forma basis, using last 12 months as of March 31, 2012,
Posadas' leverage ratios should improve. Adjusted debt to EBITDAR
ratio should approach 5.1 times (x) from 7.2x and total debt to
EBITDA should approximate 4.2x from 7.2x. If non recurrent items
of the fourth quarter of 2011 related to the vacation club and
Ampersand are added back; adjusted total debt to EBITDAR should
further improve to 4.1x approximating historical levels.
The divestiture will boost liquidity but will also result in the
loss of some geographical diversification. These assets have
historically generated close to 14% of consolidated revenues and
EBITDA, but during 2011 South American EBITDA was 19% of
consolidated EBITDA due to the non-recurrent items mentioned
above. On July 16, Posadas announced that it had reached an
agreement with Accor S.A. to sell its South American operations
for US$275 million. These assets include 15 hotels operating
under the Caesar's Park and Caesar's Business brands. The
transaction is expected to close by year-end.
Posadas' ratings are supported by the company's solid business
position, strong brand name and multiple hotel formats.
Conversely, the ratings are tempered by increased leverage, and
exposure to currency fluctuation which can pressure liquidity and
industry cyclicality. Posadas' presence in all major urban and
coastal locations in Mexico, consistent product offering and
quality brand image have resulted in occupancy levels that are
above the industry average in Mexico. The use of multiple hotel
formats allows the company to target domestic and international
business travelers of different income levels as well as tourists,
diversifying its revenue base.
Fitch currently rates Grupo Posadas as follows:
-- Local currency Issuer Default Rating (IDR) at 'B-';
-- Foreign currency IDR at 'B-';
-- National scale rating at 'B+(mex)';
-- USD200 million senior notes due 2015 at 'B-/RR4';
-- MXN2.25 billion Certificados Bursatiles issuance Posadas08
due 2013 at 'B+(mex)'.
The ratings remain on Rating Watch Negative.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week July 16 to July 20, 2012
-----------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
---------
ALTO PALERMO SA 7.875 5/11/2017 USD 82
ARGENT-$DIS 8.28 12/31/2033 USD 63.8
ARGENT-$DIS 8.28 12/31/2033 USD 66.5
ARGENT-PAR 1.18 12/31/2038 ARS 40.3
ARGENT-EURDIS 7.82 12/31/2033 EUR 65.5
ARGENT-EURDIS 7.82 12/31/2033 EUR 53.5
ARGENT-EURDIS 7.82 12/31/2033 EUR 54
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
ARGNT-BOCON PRE9 2 3/15/2014 ARS 66.8
BANCO DE GALICIA 8.75 5/4/2018 USD 73
BANCO DE GALICIA 8.75 5/4/2018 USD 71.1
BANCO MACRO SA 9.75 12/18/2036 USD 65
BANCO MACRO SA 9.75 12/18/2036 USD 62
BANCO MACRO SA 9.75 12/18/2036 USD 60
BONAR X 7 4/17/2017 USD 71
CAPEX SA 10 3/10/2018 USD 62.2
CAPEX SA 10 3/10/2018 USD 59.6
CIA LATINO AMER 9.5 12/15/2016 USD 74.1
CITY OF BUENOS 9.95 3/1/2017 USD 72.9
CITY OF BUENOS 9.95 3/1/2017 USD 72.1
EMP DISTRIB NORT 9.75 10/25/2022 USD 34
EMP DISTRIB NORT 9.75 10/25/2022 USD 35.6
EMP DISTRIB NORT 10.5 10/9/2017 USD 50
PROV BUENOS AIRE 9.625 4/18/2028 USD 51.1
PROV BUENOS AIRE 9.375 9/14/2018 USD 55.9
PROV BUENOS AIRE 9.375 9/14/2018 USD 57
PROV BUENOS AIRE 10.875 1/26/2021 USD 57.5
PROV BUENOS AIRE 10.875 1/26/2021 USD 58.1
PROV BUENOS AIRE 11.75 10/5/2015 USD 69.3
PROV BUENOS AIRE 9.25 4/15/2017 USD 72
PROV BUENOS AIRE 11.75 10/5/2015 USD 69.5
PROV DE CORDOBA 12.375 8/17/2017 USD 57.9
PROV DE CORDOBA 12.375 8/17/2017 USD 58.1
PROV DE MENDOZA 5.5 9/4/2018 USD 70.2
RAGHSA CONSTRUCC 8.5 2/16/2017 USD 85
SALTA PROVINCE 9.5 3/16/2022 USD 76.2
TRANSENER 9.75 8/15/2021 USD 40.5
TRANSENER 9.75 8/15/2021 USD 47.5
TRANSPORT DE GAS 7.875 5/14/2017 USD 73.5
BRAZIL
------
BANCO BONSUCESSO 9.25 11/3/2020 USD 60
BANCO BONSUCESSO 9.25 11/3/2020 USD 55
BANCO CRUZEIRO 8.875 9/22/2020 USD 31
BANCO CRUZEIRO 8.875 9/22/2020 USD 29.6
BANCO CRUZEIRO 7 7/8/2013 USD 51
BANCO CRUZEIRO 7.625 4/21/2014 USD 55.9
BANCO CRUZEIRO 8.25 1/20/2016 USD 55.8
BANCO CRUZEIRO 8.5 2/20/2015 USD 53.9
BANCO CRUZEIRO 8.25 1/20/2016 USD 53.6
BANCO CRUZEIRO 8.5 2/20/2015 USD 53.1
BANCO CRUZEIRO 8 9/17/2012 USD 70.2
CESP 9.75 1/15/2015 BRL 75.1
REDE EMPRESAS 11.125 USD 44.1
REDE EMPRESAS 11.125 USD 44.1
REDE EMPRESAS 11.125 USD 50
SIFCO 11.5 6/6/2016 USD 70.9
CAYMAN ISLAND
-------------
BANCO BPI (CI) 4.15 11/14/2035 EUR 56
BCP FINANCE BANK 5.01 3/31/2024 EUR 51.5
BCP FINANCE BANK 5.31 12/10/2023 EUR 53.9
BCP FINANCE CO 4.239 EUR 27.5
BCP FINANCE CO 5.543 EUR 27.8
BES FINANCE LTD 5.58 EUR 38.7
BES FINANCE LTD 4.5 EUR 49
CAM GLOBAL FIN 6.08 12/22/2030 EUR 64.9
CHINA FORESTRY 10.25 11/17/2015 USD 58.2
CHINA FORESTRY 10.25 11/17/2015 USD 56.9
CHINA SUNERGY 4.75 6/15/2013 USD 74
EFG HELLAS CAYMA 9 6/8/2019 EUR 52.5
EFG ORA FUNDING 1.7 10/29/2014 EUR 50.2
ESFG INTERNATION 5.753 EUR 31.7
GOL FINANCE 8.75 USD 76.7
GOL FINANCE 8.75 USD 71.1
JINKOSOLAR HOLD 4 5/15/2016 USD 45.2
LDK SOLAR CO LTD 10 2/28/2014 CNY 37
LDK SOLAR CO LTD 4.75 4/15/2013 USD 49.5
LDK SOLAR CO LTD 4.75 4/15/2013 USD 70.1
LUPATECH FINANCE 9.875 USD 67
LUPATECH FINANCE 9.875 USD 66.6
PUBMASTER FIN 5.943 12/30/2024 GBP 71.7
PUNCH TAVERNS 4.767 6/30/2033 GBP 71.9
RENHE COMMERCIAL 13 3/10/2016 USD 50.8
RENHE COMMERCIAL 13 3/10/2016 USD 59.5
RENHE COMMERCIAL 11.75 5/18/2015 USD 53
RENHE COMMERCIAL 11.75 5/18/2015 USD 52.9
SOLARFUN POWER H 3.5 1/15/2018 USD 68.7
SOLARFUN POWER H 3.5 1/15/2018 USD 69
SUNTECH POWER 3 3/15/2013 USD 67.8
SUNTECH POWER 3 3/15/2013 USD 69
CHILE
-----
CGE DISTRIBUCION 3.25 12/1/2012 CLP 9.97
COLBUN SA 3.2 5/1/2013 CLP 49.3
ESVAL S.A. 3.8 7/15/2012 CLP 12.7
MASISA 4.25 10/15/2012 CLP 10
QUINENCO SA 3.5 7/21/2013 CLP 25.7
PUERTO RICO
-----------
PUERTO RICO CONS 6.2 5/1/2017 USD 63
PUERTO RICO CONS 6.5 4/1/2016 USD 65.6
VENEZUELA
---------
ELEC DE CARACAS 8.5 4/10/2018 USD 72
PETROLEOS DE VEN 5.5 4/12/2037 USD 57
PETROLEOS DE VEN 5.375 4/12/2027 USD 56.2
PETROLEOS DE VEN 9.75 5/17/2035 USD 70
PETROLEOS DE VEN 5.25 4/12/2017 USD 71
PETROLEOS DE VEN 5.125 10/28/2016 USD 73.2
PETROLEOS DE VEN 9 11/17/2021 USD 74.4
VENEZUELA 7 3/31/2038 USD 63.8
VENEZUELA 7 3/31/2038 USD 66.5
VENEZUELA 6 12/9/2020 USD 69.3
VENEZUELA 7.65 4/21/2025 USD 70.8
VENEZUELA 8.25 10/13/2024 USD 74.5
***********
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 * * *