/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/121008.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, October 8, 2012, Vol. 13, No. 200 Headlines A R G E N T I N A AIRES PLUS: Creditors' Proofs of Debt Due Nov. 6 FORESY SA: Creditors' Proofs of Debt Due Oct. 10 N&GV SRL: Asks for Reorganization Proceedings PETROQUIMICA GENERAL: Creditors' Proofs of Debt Due Nov. 6 STYLE LAB: Creditors' Proofs of Debt Due Nov. 14 * PROVINCE OF CHUBUT: Moody's Assigns 'B2' Issuer Ratings B R A Z I L SAO MARTINHO: S&P Affirms 'BB+' Global Corporate Credit Rating C O L O M B I A ISAGEN: Moody's Assigns Issuer Rating; Outlook Stable C A Y M A N I S L A N D S BRAZILIAN MERCHANT: Shareholders' Final Meeting Set for Oct. 12 CAPRICORN INVESTMENT: Members Receive Wind-Up Report CREP INVESTMENT D: Shareholders' Final Meeting Set for Oct. 12 FRONT STREET: Shareholders Receive Wind-Up Report IT PRIVATE CLIENT: Shareholders Receive Wind-Up Report IVC RAINBOW: Shareholders' Final Meeting Set for Nov. 5 IVY DYNAMIC: Shareholders' Final Meeting Set for Oct. 12 RENAISSANCE INVESTMENTS: Shareholders Receive Wind-Up Report TANGARA US 4: Shareholders' Final Meeting Set for Oct. 12 TANGARA US 5: Shareholders' Final Meeting Set for Oct. 12 E L S A L V A D O R DIGICEL GROUP: To Sell Business in El Salvador to Claro M E X I C O CEMEX FINANCE: S&P Gives 'B-' Rating on 10-Year Dollar Bonds CONSUPAGO SA: Fitch Affirms Low-B Issuer Default Ratings GRUPO PETROTEMEX: Fitch Raises Issuer Default Rating From 'BB+' X X X X X X X X * BOND PRICING: For the Week Oct. 1 to Oct. 5, 2012 - - - - - ================= A R G E N T I N A ================= AIRES PLUS: Creditors' Proofs of Debt Due Nov. 6 ------------------------------------------------ Susana Luisa Erusalimsky, the court-appointed trustee for Aires Plus SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until Nov. 6, 2012. Ms. Erusalimsky 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. 23, 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: Susana Luisa Erusalimsky Espinosa 2501 Argentina FORESY SA: Creditors' Proofs of Debt Due Oct. 10 ------------------------------------------------ Antonio Sayago, the court-appointed trustee for Foresy SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until Oct. 10, 2012. Mr. Sayago will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 2 in Buenos Aires, with the assistance of Clerk No. 4, 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: Antonio Sayago Viamonte 1636 Argentina N&GV SRL: Asks for Reorganization Proceedings --------------------------------------------- N&GV SRL asked for reorganization proceedings. The company defaulted its payments last Oct. 27, 2011. PETROQUIMICA GENERAL: Creditors' Proofs of Debt Due Nov. 6 ---------------------------------------------------------- Mario Nicolas Degese, the court-appointed trustee for Petroquimica General Mosconi SAIC's bankruptcy proceedings, will be verifying creditors' proofs of claim until Nov. 6, 2012. Mr. Degese will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 18 in Buenos Aires, with the assistance of Clerk No. 35, 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: Mario Nicolas Degese Bouchard 468 Argentina STYLE LAB: Creditors' Proofs of Debt Due Nov. 14 ------------------------------------------------ Marta Cristina Lucena, the court-appointed trustee for Style Lab SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until Nov. 14, 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. 21, 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 * PROVINCE OF CHUBUT: Moody's Assigns 'B2' Issuer Ratings --------------------------------------------------------- Moody's Latin America has assigned issuer ratings of B2 (Global Scale) and Aa3.ar (Argentina National Scale) to the Province of Chubut. At the same time, Moody's assigned ratings of B2 (Global Scale) and Aa3.ar (Argentina National Scale) to the province's Short-Term Treasury Note Program, which has a maximum authorized amount of USD50 million, or its equivalent in local currency. These issuer and debt ratings are under review for possible downgrade, consistent with the rating actions on Argentinean sub- sovereign entities. Ratings Rationale The assigned ratings reflect an ongoing trend of positive gross operating and cash financing results, a strong own-source revenue base and low debt to revenue levels. Between 2004 and 2011, Chubut's gross operating balances averaged a high 38% of operating revenues. The province posted cash financing surpluses equivalent to 15% of total revenues, on average, in the same period. "This trend of positive gross operating margins reflects the province's strong own source revenue base, allowing to finance capital expenditures without significant new borrowing", said Moody's analyst Patricio Esnaola. Chubut's own source revenues represent around 65% of total revenues. The province accounts for 28% of oil production in Argentina. Nearly 46% of the province's own source revenues are comprised of oil royalties, while taxes represent about 28%. "Such strong own-source revenue base provides the province with a high degree of fiscal flexibility", said Mr. Esnaola. Chubut's stock of debt has remained fairly unchanged during the last 8 years, at around ARS$1 billion. When related to revenues, net direct and indirect debt declined from 63% in 2004 to 14% in 2011, a low level when compared with rated peers in the country. "We expect debt levels to increase marginally going forward as the province plans to tap the local market this year and is also considering borrowing from the international capital markets", added Esnaola. Net direct and indirect debt is expected to remain at 13% of revenues in 2012 and around 15% by the end of 2013, according to Moody's forecasts. "The province still faces strong rigidities in its personnel costs which have been exacerbated by Argentina's high inflation rates". "This challenge is partially mitigated by the province's proven capacity to balance revenue and expenditure growth", Esnaola said. The assigned ratings to the short-term treasury note program reflect Moody's view that the willingness and capacity of the Province of Chubut to honor short-term treasury notes is in line with the province's long-term credit quality as captured in the B2/Aa3.ar issuer ratings. Chubut's ratings are under review for possible downgrade along with those Argentinean sub-sovereigns that are rated above the sovereign rating. The review will focus on reassessing the operational and financial linkages between the country's sub- sovereigns and the central government. Thus, Moody's will evaluate whether Chubut continues to benefit from enough degree of independence from the sovereign to justify higher ratings. In particular, Moody's will look at the province's reliance on federal funding and its access to capital markets or bank funding. What Could Change The Rating UP/DOWN Moody's does not expect upward pressures for the Province of Chubut in the near to medium term. Throughout the review period, Moody's will evaluate the linkages that exist between the sovereign and the Province of Chubut and define whether or not a rating compression of the assigned ratings closer to or at the sovereign level is merited. Also, a downgrade on the Sovereign rating could lead to a rating downgrade as would a deterioration of Chubut's financial metrics, including sudden increases in short-term borrowing arising from a deterioration of its liquidity position. =========== B R A Z I L =========== SAO MARTINHO: S&P Affirms 'BB+' Global Corporate Credit Rating -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+' global scale rating and 'brAA+' corporate credit ratings on Sao Martinho S.A. The outlook is stable. "The ratings affirmation reflects our view that the company's solid assets will allow it to continue generating free operating cash flows and quickly reduce the leverage metrics. Credit metrics have weakened in the past few quarters given poor weather and weak ethanol prices. However, we expect stronger operating performance in the 2012-2013 harvest, stemming from higher availability of cane following greater maintenance and expansion investments in its plantation fields during the past few harvests. Better agricultural yields and higher capacity use should translate into stronger cash flow generation," S&P said. =============== C O L O M B I A =============== ISAGEN: Moody's Assigns Issuer Rating; Outlook Stable ----------------------------------------------------- Moody's Investors Service assigned a Baa3 Issuer Rating to ISAGEN. The outlook is stable. This is the first time Moody's has assigned a rating to ISAGEN. Ratings Rationale ISAGEN's Baa3 Issuer rating reflects its ownership structure and linkages with the Government of Colombia. ISAGEN falls under the scope of Moody's rating methodology for government-related issuers (GRIs) given the 57.66% majority ownership-interest held by the Colombian government (Baa3, stable). The government currently guarantees one piece of indebtedness incurred in 2005; however, Moody's does not anticipate this will be a recurrent event and believes that there is a "medium" likelihood of government extraordinary support in the case of distress mainly for reputational reasons. Moody's estimate of "high" default dependence reflects the expectation that there is an elevated likelihood that the government and ISAGEN would default simultaneously due to common risk factors. ISAGEN's Baseline credit assessment (BCA) which is an opinion of the issuer's intrinsic creditworthiness before taking into account possible extraordinary support from the sovereign is ba1. This is based on a scale of aaa to c in which aaa indicates the highest credit quality. ISAGEN's BCA factors its market position as the third largest wholesale power generation company in Colombia in terms of installed capacity (around 16% market share) and generated output. The BCA incorporates limited uplift from the geographic diversity associated with ISAGEN's operations via the interconnections with Venezuela, where operations are, in Moody's opinion, overall challenging, albeit Moody's acknowledges that ISAGEN has several tools in place to minimize any potential delays in payments. The BCA also captures the company's fleet composition in Colombia that closely resembles the country's power generation mix given that hydro-facilities account for the bulk of ISAGEN's plants (1,832 MW pending the completion of the 80MW Amoya hydro-plant) and the national installed capacity. As such, ISAGEN's relative contribution to the output injected into the Colombian interconnection system largely depends on the prevailing hydro- conditions. This has ranged between 16.5% (2009) and 18.8% (2011) in recent years when the country was affected by the extreme weather phenomena El Ninio (June 2009 until mid 2010) and La Ninia (that started during the second half of 2010 and lasted until the first half of 2012). In Colombia, these phenomena result in lower or higher than usual hydrology conditions, respectively. However, ISAGEN's BCA also acknowledges the benefits associated with its 300MW natural gas fired facility Termocentro that provides some diversification and supports ISAGEN's overall prudent commercial policy, another credit positive. Moody's understands that ISAGEN's commercial policy consists of contracting only a certain percentage of ISAGEN's expected output depending on the hydro-conditions, namely between around 80% (during the drier periods) and 90% (when hydrology is at the higher end). Moody's believes that the severity of the 2009/2010 El Ninio phenomena tested the adequacy of ISAGEN's commercial policy and risk management practices given that during those years its aggregated sales under Power Purchase Agreements (PPAs) accounted for less than 85% of its actual output. Moody's considers this credit enhancing, because it reduces the risk of having to procure power in the spot markets at higher than contracted power prices to honor the contractual obligations when unfavorable hydro conditions prevail. The predictability of ISAGEN's cash flows is further underpinned by the reliability charges that the generators have received since 2006. These are based on the firm energy obligations (OEF) that are allocated based on the maximum power output that a plant is able to deliver on a continual basis during a year under extreme hydrology conditions. ISAGEN has entered contractual obligations to procure the natural gas required to ensure that its Termocentro plant meets its OEF, albeit delivery is contingent to force majeure conditions as was the case in 2010 when El Ninio resulted in some natural gas supply restrictions in Colombia, a credit risk. The BCA also acknowledges ISAGEN's success in reselling a portion of its excess natural gas during those years when Termocentro is dispatched less frequently under more favorable hydro conditions. The resulting reduction in the net procurement costs is a credit positive. ISAGEN's BCA is largely tempered by the risks associated with its investment program, which started in 2008, to improve and modernize some of ISAGEN's existing fleet operations but particularly by the construction risks in connection with the projects to add 900MW of new capacity. These consist of the 80MW Amoya (over 90% completed) and the 820MW Sogamoso hydro-facilities (total capex of around US$1.8 billion excluding financing costs; current progress of around 50%). ISAGEN's rating acknowledges that these projects will enhance the company's cash flow generation ability (+60% output) and that the company fully funded with internally generated cash flows its modernization projects and the Amoya plant. However, Moody's notes that some of these projects have faced significant challenges and in the case of the Amoya plant they have resulted in delays in its completion which has been now postponed to not later than the first quarter of 2013 after it was rescheduled earlier this year to November 2012 (completion initially expected in July), a credit negative. Moody's notes that ISAGEN has already executed the financing, which started in 2009, to secure the bulk of the indebtedness to fund 50% of Sogamoso's expected construction costs. While this level of financing is not considered aggressive, a credit positive; nevertheless, the company's overall leverage is expected to increase substantially given the total size of the project with debt growing to approximately US$1.3 billion upon the expected completion of the plant during the first half of 2014 (year-end 2008: US$290 million) despite some amortizing bank debt. As a result, ISAGEN's credit metrics will continue their progressive deterioration that started in 2010 when CFO pre-W/C to debt declined to less than 40% compared to over 51% at year-end 2008 and 2009. Pending the completion of the Amoya plant, ISAGEN's cash flows this year are being impacted by higher natural gas procurement expenses for its Termocentro facility which have been only partially mitigated by the cost recovery under its resale program, as well as higher administrative costs associated with the new headquarters facility, which Moody's understands are of a temporary nature. The BCA also acknowledges that the successful completion of the Sogamoso power plant will somewhat reduce ISAGEN's current high dependence on the 1,240MW San Carlos hydro-plant that accounts for a substantial portion of the company's installed capacity and output, a credit negative. Moody's also understands that ISAGEN is considering a pipeline of new projects that could be pursued over a longer period of time not only in Colombia but elsewhere in Latin America. While Moody's acknowledges the benefits of the geographic diversification associated with the latter, Moody's also believes this is not without risks. However, Moody's concerns are somewhat mitigated by Moody's understanding that any future international expansion will consider only projects in neighbouring investment grade countries and such projects will be funded in a prudent fashion. This expectation is underpinned by the incurrence test embedded in a significant portion of ISAGEN's indebtedness, including a debt to EBITDA covenant below 4.0x. As a result, the rating assumes that despite the further expected deterioration in ISAGEN's credit metrics these will remain commensurate with the current rating category, such that ISAGEN will record average CFO pre-W/C to debt and interest coverage in the very high teens and at least 3.5x, respectively, on a sustainable basis. Moody's view about the management's overall prudent financial policy also considers the company's dividend policy, and the expectation that at least until the completion of the Sogamoso plant, the company will further build its reserves and maintain a dividend payout ratio below 60% that compares favorably with ISAGEN's peers in Colombia. The company's reliance on the capital markets to meet any unforeseen fund requirements, particularly in the absence of committed credit facilities, is a credit negative. That said, Moody's also acknowledges that ISAGEN has already executed all the financing necessary to fund the Sogamoso facility along with its manageable debt maturity profile. The vast majority of ISAGEN's indebtedness (except for around US$150 million in debt to fund Sogamoso's equipment) is denominated in Colombian pesos, a credit positive. The rating also assumes the issuer will also prudently manage the exchange rate risk exposure that may arise in connection with any future indebtedness incurred in foreign currency. ISAGEN's stable outlook reflects Moody's expectation that the issuer will be able to successfully manage its ongoing construction program and increasing leverage position, such that it reports credit metrics that remain commensurate with the rating category. The stable outlook also reflects the stable outlook of the sovereign rating amid Moody's assumptions of medium support and high dependence under the GRI methodology. Limited prospects exist for an upgrade of ISAGEN's BCA and the Baa3 Issuer rating given the delays in the operations of the 80MW Amoya plant, the sizeable construction risk associated with the Sogamoso plant and the further anticipated deterioration in its credit metrics. That said, positive momentum on the BCA could be triggered if upon completion of its current construction program ISAGEN is able to report credit metrics that are robust for the current rating category. Quantitatively, an upgrade could be triggered if its CFO pre-W/C and interest coverage were to exceed 25% and 5x, respectively, on a sustainable basis. A rating upgrade of the sovereign rating could also trigger an upgrade of ISAGEN's rating if in Moody's opinion the government's extraordinary support to ISAGEN under the GRI methodology is also higher than Moody's current assessment of "medium". A downgrade of ISAGEN's BCA or rating could be triggered by a permanent significant deterioration of the company's operations, a more aggressive future expansion strategy and/or poor management of its liquidity, indebtedness profile or current construction risk that results in significant delays and/or cost overruns. Negative momentum is likely if ISAGEN reports credit metrics that are weakly positioned within the rating category. Specifically, if it reports CFO pre-W/C to debt and interest coverage below 17% and 3.0x, respectively, on a sustainable basis. ISAGEN's rating is likely to be downgraded if Moody's perceives that Moody's assessment about the government's extraordinary support of the company should be lower than "medium" and/or following a downgrade of the sovereign rating. The methodologies used in this rating were Unregulated Utilities and Power Companies published in August 2009 and Government- Related Issuers: Methodology Update published in July 2010. Headquartered in Medellin, ISAGEN S.A. E.S.P. (ISAGEN) is the third largest generation company in Colombia (Baa3, stable) in terms of generated output and installed capacity of around 2,132 MW pending the completion of the 80MW Amoya plant. In addition, ISAGEN is the representative of the electrical interconnection with Venezuela through the Cuestecitas-Cuatricentenario and the Corozo-San Mateo circuits and also one of the main Energy Exchange agents in Colombia. At the end of June 2012, ISAGEN's reported total assets approximated US$3.2 billion. ========================== C A Y M A N I S L A N D S ========================== BRAZILIAN MERCHANT: Shareholders' Final Meeting Set for Oct. 12 --------------------------------------------------------------- The shareholders of Brazilian Merchant Voucher Receivables Limited will hold their final meeting on Oct. 12, 2012, at 10:45 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers SPV Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 CAPRICORN INVESTMENT: Members Receive Wind-Up Report ---------------------------------------------------- The members of Capricorn Investment Advisors (Cayman) Ltd. received on Oct. 4, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. Mikkel Thorup is the company's liquidator. CREP INVESTMENT D: Shareholders' Final Meeting Set for Oct. 12 -------------------------------------------------------------- The shareholders of Crep Investment D Cayman will hold their final meeting on Oct. 12, 2012, at 11:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers SPV Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 FRONT STREET: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Front Street Canadian Opportunities Fund Ltd. received on Sept. 10, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 IT PRIVATE CLIENT: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of IT Private Client Services, Ltd. received on Oct. 1, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: ITA Global Trust Company, Ltd. Suite 4210 Canella Court 48 Market Street, Camana Bay PO Box 32203 Grand Cayman, KY-1208 Cayman Islands IVC RAINBOW: Shareholders' Final Meeting Set for Nov. 5 ------------------------------------------------------- The shareholders of IVC Rainbow Limited will hold their final meeting on Nov. 5, 2012, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Westport Services Ltd. c/o Evania Ebanks Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands IVY DYNAMIC: Shareholders' Final Meeting Set for Oct. 12 -------------------------------------------------------- The shareholders of Ivy Dynamic Credit Fund, Ltd. will hold their final meeting on Oct. 12, 2012, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 RENAISSANCE INVESTMENTS: Shareholders Receive Wind-Up Report ------------------------------------------------------------ The shareholders of Renaissance Investments Management Compensation Fund received on Oct. 2, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Appleby Trust (Cayman) Ltd. PO Box 1350 Clifton House, 75 Fort Street Grand Cayman KY1-1108 Cayman Islands TANGARA US 4: Shareholders' Final Meeting Set for Oct. 12 --------------------------------------------------------- The shareholders of Tangara US 4 Leasing Limited will hold their final meeting on Oct. 12, 2012, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: TMF Nominees Ltd. P.O. Box 10338 Grand Cayman KY1-1003 Cayman Islands Telephone: 345-949-7232 TANGARA US 5: Shareholders' Final Meeting Set for Oct. 12 --------------------------------------------------------- The shareholders of Tangara US 5 Leasing Limited will hold their final meeting on Oct. 12, 2012, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: TMF Nominees Ltd. P.O. Box 10338 Grand Cayman KY1-1003 Cayman Islands Telephone: 345-949-7232 ==================== E L S A L V A D O R ==================== DIGICEL GROUP: To Sell Business in El Salvador to Claro ------------------------------------------------------- RJR News reports that a plan by Digicel Group to sell its business in El Salvador to Claro has again been rejected by the country's regulator. The regulator said a technical, legal and economic analysis showed a merger would likely have an adverse effect on competition and the welfare of consumers in the fixed and mobile telephony markets in El Salvador, according to RJR News. The report relates that Digicel Group said it's examining the 129-page ruling. The report notes that this is the second time the deal has been rejected in the past 18 months. The transaction dates back to March last year when Digicel Group agreed to acquire Claro's business in Jamaica and sell its businesses in El Salvador and Honduras to the Mexican company, RJR News notes. The Jamaican and Honduran legs of the deal have already been completed, the report adds. * * * As reported in the Troubled Company Reporter on Sept. 7, 2012, Moody's Investors Service has assigned a Caa1 rating to Digicel Group Limited's proposed US$700 million senior unsecured notes due 2020. Net proceeds will be used to repurchase the entire tranche of the DGL 9.125%/9.875% senior PIK toggle notes due 2015 (US$415 million outstanding) and a portion of the 8.875% senior notes due 2015 (US$1 billion outstanding) via tender offers. =========== M E X I C O =========== CEMEX FINANCE: S&P Gives 'B-' Rating on 10-Year Dollar Bonds ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'B-' issue-level rating and a recovery rating of '3' to CEMEX Finance LLC's proposed 10-year benchmark dollar bonds. The recovery rating of '3' indicates that lenders can expect substantial (50% to 70%) recovery in the event of a payment default. CEMEX Finance LLC is a wholly-owned subsidiary of CEMEX S.A.B. de C.V. (CEMEX; B-/Watch Neg/--) and is incorporated for an unlimited period of time as a private limited liability company under the laws of Delaware. The bonds will benefit from a security package on the same terms as in all other senior capital markets debt. The security package includes the full and unconditional guarantee, on a joint and several basis and on a general senior basis, by CEMEX Mexico, S.A. de C.V., CEMEX Espa�a, S.A., CEMEX Corp., New Sunward Holding B.V., and CEMEX's other subsidiaries. "CEMEX intends to use the net proceeds from the offering to repay its debt under its Facilities Agreement. If the company is able to successfully issue the proposed bonds and raise most of the funds required for the next $1 billion payment under the Facilities Agreement due March 2013, we will soon consider resolving the CreditWatch listing on all the ratings on CEMEX and its key operating subsidiaries--CEMEX Espa�a, CEMEX Mexico, CEMEX Corp., and CEMEX Inc.-where we placed them on July 3, 2012. For the latest credit rationale on CEMEX, please see 'Cemex 'B-' Rating Placed On CreditWatch Negative On Higher Short-Term Risk From Proposed Debt Refinancing,' published July 3," S&P said. CONSUPAGO SA: Fitch Affirms Low-B Issuer Default Ratings -------------------------------------------------------- Fitch Ratings has affirmed Consupago, S.A. de C.V.'s ratings as follows: -- Long-term foreign currency Issuer Default Rating (IDR) at 'BB-'; -- Short-term foreign currency IDR at 'B'; -- Long-term local currency IDR at 'BB-'; -- Short-term local currency IDR at 'B'; -- Senior unsecured debt for up to MX$750 million at 'BB-'; -- Long-term national-scale rating at 'A-(mex)'; -- Short-term national-scale rating at 'F2(mex)'; -- Short-term national-scale rating for local MX$1,000 million senior unsecured debt at 'F2(mex)'. -- Long-term national-scale rating for local MX$500 million senior unsecured debt at 'A-(mex)' from a long-term unsecured debt of MX$2,000 million. The Rating Outlook is Stable. Consupago's ratings are driven by its strong capitalization; sound and recurring profitability driven by ample margins, well- contained provisions and strong efficiency levels; and adequate asset quality and loan loss reserve coverage. However, the ratings also factor in the limited flexibility of its funding structure, the challenging operating and competitive environment, and portfolio concentrations by region and employer. Material improvements on the profile, diversification and flexibility of Consupago's funding mix, coupled with smaller asset liability tenor mismatches, could potentially trigger a revision of Consupago's ratings; nevertheless, Consupago's ratings could be downgraded if core or tangible common capital falls below 20% of total assets, and/or if asset quality weakens to an extent that materially diminishes its loss absorption capacity, and/or if core earnings decline materially (operative ROA below 5%). Consupago grants loans to public sector employees that explicitly agree to repay those loans through direct payroll debits, largely mitigating credit risk. These jobs are typically stable, but the relatively lower salaries in the public sector mean few financing alternatives for these individuals, which explain the relatively high interest rates. Unlike most peers, Consupago's businesses are primarily direct, avoiding heavy broker-related fees. However, operational, reputational and event risks could be material. Strong and recurring net interest margin (NIM) of 49.9% and sound efficiency of 31.5% as of June 2012, are major drivers of sound and ample core earnings. Some pressure has arisen from a more challenging environment, increasing competition and higher expenses driven by its soon conversion into a bank. Fitch considers that Consupago will likely maintain robust earnings, comfortably absorbing its high credit costs. Given the payroll deduction mechanism, overall impairments, provisions and charge-offs are relatively moderate. The negative recent trends are driven by lower charge-offs and a tough economic environment. Loans are diversified by borrower, although certain concentrations by regions and employers remain. A gradually enhanced credit process in recent years and ample loan loss reserves are additional mitigating factors for credit risk. Consupago further strengthened its risk management framework while migrating into a bank. Given its exceptionally high profitability and the slowdown in loan growth in recent years, the capital base is ample and has continued growing steadily. Even after adjusting for certain non- core assets; Fitch's measurement of core capital remained at a robust 44.3% of total assets as of June 2012. Sound capital is one of Consupago's key strengths. In Fitch's opinion, improving its funding structure is one of Consupago's major challenges. While liquidity is comfortable and sustained by ample and recurring portfolio cash flows, the funding base is concentrated in a few secured banking facilities, as well as unsecured local and global debt issues that have shorter tenors than its loan portfolio. While Consupago does not plan to materially change its business profile following its conversion into a bank, Fitch expects a gradual improvement on its funding profile. Despite its conversion into a bank, Consupago will focus on the current business model, as it does not plan in the near future to expand its array of financial products or attend different sectors, neither developing a network of bank branches, while its funding sourced from customer deposits will be moderate. Given the small size of the banking entity into which Consupago's activities will be transferred, Fitch does not expect a material change on the company's financial profile or performance upon its completion. While credit risk is low, Fitch considers that Consupago's exposure to operational, political and event risk is somewhat higher, like most companies in this market. These are related to the properly execution of the agreements with employers, and potential unwillingness or inability from the latter to timely or fully disburse retained collections. Consupago was established in 2001 and it was initially conceived as the financial channel for the sales of home appliances at Tiendas Chedraui, one of the largest retailers of furniture, clothes and durable goods in Mexico. In 2003, it entered into a new business line, personal loans exclusively for public-sector employees with cash collections through payroll deduction made by the employer, which rapidly turned into Consupago's core business and the company has consolidated as one of the leading institutions in this market. GRUPO PETROTEMEX: Fitch Raises Issuer Default Rating From 'BB+' --------------------------------------------------------------- Fitch Ratings has upgraded Grupo Petrotemex, S.A. de C.V. ratings as follows: -- Long-Term Issuer Default Rating (IDR) to 'BBB-' from 'BB+'; -- Local Currency IDR to 'BBB-' from 'BB+'. Petrotemex's Rating Outlook is Stable. In addition, Fitch upgraded DAK Americas, LLC's Long-Term IDR 'BBB-' from 'BB+'. The Outlook is Stable. Fitch has also upgraded the following ratings for Petrotemex and DAK Americas, LLC: -- Petrotemex US$75 million privately placed senior notes due 2012 (outstanding balance of US$11 million) to 'BBB-' from 'BB+'; -- Petrotemex US$275 million senior notes due 2014 (outstanding balance of US$121 million) to 'BBB-' from 'BB+'; -- DAK Americas US$115 million privately placed senior notes due 2014 (outstanding balance of US$33 million) to 'BBB-' from 'BB+'. The rating upgrades reflect Petrotemex's earlier than anticipated deleverage process and Fitch expectations that the company will maintain a net debt to EBITDA ratio around 1.5x over the long term, in line with its parent's financial target. The combination of a net equity injection of USD279 million with improved cash flow from operations and synergies gained from past acquisitions has allowed Petrotemex to reduce its indebtedness. Event risks is still present for Petrotemex, nevertheless Fitch's analysis incorporates the company's strong commitment to support a robust financial profile going forward and that any likely acquisition, that could weaken its capital structure from current levels, should be financed with a mix of capital and debt. Net leverage may increase to approximately 2.0x but with a gradual reduction to 1.5x once the projects mature. Petrotemex ratings are supported by the company's strong domestic and global competitive position, its long-term supply and customer arrangements and geographically diversified operating base. The resilience of the company's client base, which consists of many food, beverage and personal care products, to economic downturns is also factored into the company's ratings. Strong Business Profile Petrotemex growth through acquisitions and organic expansions has positioned it as a major player in the polyester chain in North America, which strengthens its business profile and allows it to operate in a less volatile market. The exit of some participants in U.S. has resulted in market rationalization and ease competitive pressures. Volumes in the region should be driven by stable customer demand and the expectation of no additional capacity in the near term. Fitch expects the company will continue investing in efficiency projects, as well as capacity growth, with a combination of green field investments and potential acquisitions. Increasing Cash Flow From Operations During the last twelve months ended in June 30, 2012, Petrotemex registered Revenues and EBITDA of approximately USD5.9 billion and USD560 million, respectively. In addition, Free Cash Flow was in excess of USD50 million after capex and dividend payments. Fitch believes Petrotemex is well positioned to continue generating positive free cash flow in the next years. Funds flow from operations is expected to cover working capital and normal capex requirements. Low leverage and Adequate Liquidity Petrotemex leverage is low. On a pro forma basis after the debt reduction coming from the equity injection, the company's Total Debt to EBITDA will strengthen to 1.5x and Net Debt to EBITDA 1.0x, from 2.0 and 1.5x as of June, 2012, respectively. Fitch expects these credit metrics will remain relatively stable in the future. As of 30 June, 2012, Petrotemex's cash and marketable securities was USD283 million, short term debt was USD151 million and total debt at USD1.1 billion. Pro forma total debt balance is expected to be approximately USD900 million and debt maturities during 2013 are manageable at approximately USD90 million. The company's liquidity is further supported by committed credit lines in excess of USD200 million; availability under these facilities on a pro forma basis after debt repayment is approximately USD190 million. Key Rating Drivers A negative rating action could arise from a combination of sharp and consistent reductions in volumes, profitability and cash flow generation resulting in lower fixed-cost absorption and weaker main credit metrics. A larger than expected debt-financed acquisition that impacts the company's capital structure away from the target net debt to EBITDA of 1.5x on the long term should also pressure the ratings. Positive rating actions are limited at the time and could be supported by consistent positive free cash flow generation through economic cycles combined with the expectation of lower leverage levels in the mid to long term. =============== X X X X X X X X =============== * BOND PRICING: For the Week Oct. 1 to Oct. 5, 2012 --------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- ARGENT-$DIS 8.28 12/31/2033 USD 63.51 ARGENT-$DIS 8.28 12/31/2033 USD 70.88 ARGENT-$DIS 8.28 12/31/2033 USD 71.38 ARGENT-$DIS 8.28 12/31/2033 USD 74.5 ARGENT-PAR 1.18 12/31/2038 ARS 39.66 ARGENT-EURDIS 7.82 12/31/2033 EUR 45 ARGENT-EURDIS 7.82 12/31/2033 EUR 66.5 ARGENT-EURDIS 7.82 12/31/2033 EUR 66 ARGENT-JPYDIS 4.33 12/31/2033 JPY 44 ARGENT-JPYPAR 0.45 12/31/2038 JPY 15 ARGENT-JPYPAR&GDP 0.45 12/31/2038 JPY 8 ARGNT-BOCON PRE9 2 3/15/2014 ARS 58.75 BANCO MACRO SA 9.75 12/18/2036 USD 72.25 BANCO MACRO SA 9.75 12/18/2036 USD 71.03 BANCO MACRO SA 9.75 12/18/2036 USD 73.75 CAPEX SA 10 3/10/2018 USD 75 CAPEX SA 10 3/10/2018 USD 75 CIA LATINO AMER 9.5 12/15/2016 USD 70 EMP DISTRIB NORT 9.75 10/25/2022 USD 50.5 EMP DISTRIB NORT 10.5 10/9/2017 USD 39.83 EMP DISTRIB NORT 9.75 10/25/2022 USD 46.88 PROV BUENOS AIRE 9.625 4/18/2028 USD 65.38 PROV BUENOS AIRE 9.625 4/18/2028 USD 66.5 PROV BUENOS AIRE 9.375 9/14/2018 USD 72.17 PROV BUENOS AIRE 9.375 9/14/2018 USD 72.38 PROV BUENOS AIRE 10.875 1/26/2021 USD 73.63 PROV BUENOS AIRE 10.875 1/26/2021 USD 74.13 PROV DE FORMOSA 5 2/27/2022 USD 65.25 PROV DE MENDOZA 5.5 9/4/2018 USD 73.13 PROV DE MENDOZA 5.5 9/4/2018 USD 75.03 PROV DEL CHACO 4 12/4/2026 USD 31.5 PROV DEL CHACO 4 11/4/2023 USD 58.25 TRANSENER 9.75 8/15/2021 USD 45 TRANSENER 9.75 8/15/2021 USD 42 BRAZIL ------ BANCO BONSUCESSO 9.25 11/3/2020 USD 76 BANCO BONSUCESSO 9.25 11/3/2020 USD 74.13 BANCO CRUZEIRO 8.875 9/22/2020 USD 26.75 BANCO CRUZEIRO 8.875 9/22/2020 USD 20.5 BANCO CRUZEIRO 8.5 2/20/2015 USD 35.13 BANCO CRUZEIRO 7 7/8/2013 USD 21 BANCO CRUZEIRO 8.25 1/20/2016 USD 22 BANCO CRUZEIRO 7.625 4/21/2014 USD 20.5 BANCO CRUZEIRO 8 9/17/2012 USD 21 BANCO CRUZEIRO 8.25 1/20/2016 USD 43.75 BANCO CRUZEIRO 8.5 2/20/2015 USD 40.5 CESP 9.75 1/15/2015 BRL 72.6 REDE EMPRESAS 11.125 USD 28.88 REDE EMPRESAS 11.125 USD 28.88 REDE EMPRESAS 11.125 USD 29.95 CAYMAN ISLAND ------------- BCP FINANCE BANK 5.01 3/31/2024 EUR 65 BCP FINANCE BANK 5.31 12/10/2023 EUR 67.5 BCP FINANCE CO 4.239 EUR 29.75 BCP FINANCE CO 5.543 EUR 31.17 BES FINANCE LTD 5.58 EUR 39.5 BES FINANCE LTD 4.5 EUR 50.67 CAM GLOBAL FIN 6.08 12/22/2030 EUR 46.75 CHINA FORESTRY 10.25 11/17/2015 USD 58.2 CHINA FORESTRY 10.25 11/17/2015 USD 56.88 CHINA SUNERGY 4.75 6/15/2013 USD 52.4 EFG HELLAS CAYMA 9 6/8/2019 EUR 61 EFG ORA FUNDING 1.7 10/29/2014 EUR 51.11 ESFG INTERNATION 5.753 EUR 35.67 GOL FINANCE 8.75 USD 70.6 GOL FINANCE 8.75 USD 69 JINKOSOLAR HOLD 4 5/15/2016 USD 43.74 LDK SOLAR CO LTD 4.75 4/15/2013 USD 65.1 LUPATECH FINANCE 9.875 USD 56.75 LUPATECH FINANCE 9.875 USD 55.38 RENHE COMMERCIAL 13 3/10/2016 USD 51.25 RENHE COMMERCIAL 13 3/10/2016 USD 50.63 RENHE COMMERCIAL 11.75 5/18/2015 USD 52.01 RENHE COMMERCIAL 11.75 5/18/2015 USD 51.63 SHINSEI FIN CAYM 6.418 USD 67.13 SHINSEI FIN CAYM 6.418 USD 67.13 SHINSEI FINANCE 7.16 USD 67.63 SHINSEI FINANCE 7.16 USD 67.63 SOLARFUN POWER H 3.5 1/15/2018 USD 72.87 SOLARFUN POWER H 3.5 1/15/2018 USD 74 SUNTECH POWER 3 3/15/2013 USD 29 SUNTECH POWER 3 3/15/2013 USD 31.05 CHILE ----- CGE DISTRIBUCION 3.25 12/1/2012 CLP 10.1 CHILE 3 1/1/2042 CLP 62.55 CHILE 3 1/1/2042 CLP 62.55 CHILE 3 1/1/2040 CLP 63.91 CHILE 3 1/1/2040 CLP 63.91 CHILE 3 1/1/2032 CLP 70.96 CHILE 3 1/1/2032 CLP 70.97 CHILE 3 1/1/2030 CLP 73.41 CHILE 3 1/1/2030 CLP 73.41 COLBUN SA 3.2 5/1/2013 CLP 50.4 MASISA 4.25 10/15/2012 CLP 10.18 QUINENCO SA 3.5 7/21/2013 CLP 12.52 PUERTO RICO ----------- BANCO SANTANDER 6.1 6/1/2032 USD 63.59 BANCO SANTANDER 6.3 6/1/2032 USD 65.36 PUERTO RICO CONS 6.5 4/1/2016 USD 63.88 VENEZUELA --------- ELEC DE CARACAS 8.5 4/10/2018 USD 75.5 PETROLEOS DE VEN 5.5 4/12/2037 USD 61.85 PETROLEOS DE VEN 5.375 4/12/2027 USD 61.38 VENEZUELA 7 3/31/2038 USD 71.44 VENEZUELA 7 3/31/2038 USD 71.5 *********** 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 * * *