/raid1/www/Hosts/bankrupt/TCRLA_Public/121010.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
Wednesday, October 10, 2012, Vol. 13, No. 202
Headlines
A R G E N T I N A
METROGAS SA: Seeks Aid to Meet Payments as Cash Dries Up
B E R M U D A
BURROWS CONSTRUCTION: Court to Hear Wind-Up Petition on Oct. 26
INVESTMENT RESEARCH: Creditors' Proofs of Debt Due Oct. 12
INVESTMENT RESEARCH: Members' Final Meeting Set for Oct. 31
B R A Z I L
BANIF-BANCO: Moody's Withdraws 'E+' BFSR, 'B2' Deposit Ratings
OAS INVESTMENTS: Fitch Puts Rating $300-Mil Sr. Notes at 'B'
OAS INVESTMENTS: S&P Gives 'BB-' Rating on Senior Unsecured Notes
C A Y M A N I S L A N D S
CLEAN RESOURCES: Members Receive Wind-Up Report
CLEAN WATER ASIA: Members Receive Wind-Up Report
CLEAN WATER LONG: Members Receive Wind-Up Report
CLEAN WATER (OFFSHORE): Members Receive Wind-Up Report
CLEAN WATER ONLY: Members Receive Wind-Up Report
FIELD POINT I: Shareholders' Final Meeting Set for Oct. 12
KENT FUNDING II: Shareholders' Final Meeting Set for Oct. 12
OFFSHORE GROUP: Moody's Affirms 'B3' CFR/PDR; Outlook Negative
PACIFIC ESPLANADE: Shareholder Receives Wind-Up Report
TOKYOR ASSET: Shareholder to Hear Wind-Up Report on Oct. 10
WOLFACRE GLOBAL: Shareholders' Final Meeting Set for Oct. 12
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: Government to Cut Spending by US$1.53BB
G R E N A D A
GRENADA: S&P Cuts Foreign Sovereign Credit Ratings to 'SD'
J A M A I C A
* JAMAICA: S&P Affirms 'B-/B' Sovereign Credit Ratings
M E X I C O
BANCO CREDIT: Moody's Withdraws D+ Bank Financial Strength Rating
CERVECERIA NACIONAL: Moody's Withdraws 'B1' Corp. Family Rating
T R I N I D A D & T O B A G O
PETROTRIN: Trinidad Government Owes Firm Over $7 Billion
X X X X X X X X
* Moody's Says Global Corporate Default Rate Up 3% in 3Q2012
- - - - -
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A R G E N T I N A
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METROGAS SA: Seeks Aid to Meet Payments as Cash Dries Up
--------------------------------------------------------
Pablo Gonzalez at Bloomberg News reports that an unnamed company
official said that Metrogas SA is in talks with the government to
seek subsidies after four quarters of insufficient cash flows.
The official said that the company, which is emerging from
bankruptcy, needs cash to meet payments to suppliers and employees
as consumption of gas for heating is decreasing after the Southern
Hemisphere winter ended, according to Bloomberg News.
Bloomberg News notes the official said that Petroleo Brasileiro SA
is among suppliers getting half the payments due this month as
Metrogas seeks to reschedule the obligations within 90 days. A
rate increase is also being discussed with the government, the
official said, Bloomberg News relates.
President Cristina Fernandez de Kirchner submitted a budget
proposal that sets aside ARS12 billion (US$2.6 billion) for
subsidies to energy companies and authorizes withdrawals from
central bank reserves to provide the aid, Bloomberg News notes.
President Fernandez is tightening control over the South American
country's energy industry after price caps discouraged investments
and squeezed profit margins in past years, Bloomberg News relays.
Bloomberg News says that Metrogas, which filed for bankruptcy
protection in 2010, won court approval this month to proceed with
a US$250 million debt restructuring plan backed by 90% of its
creditors. The deal includes swapping bonds for new debt.
Buenos Aires-based newspaper La Nacion reported that Metrogas is
cutting payments to suppliers by half this month and that it
pledged to meet the overdue obligations in 90 days, Bloomberg News
adds.
About MetroGas
Buenos Aires, Argentina-based MetroGAS S.A., a gas distribution
company, was incorporated on Nov. 24, 1992, and began operations
on Dec. 29, 1992, when the privatization of Gas del Estado S.E.
("GdE") (an Argentine Government-owned enterprise) was completed.
Through Executive Decree No. 2,459/92 dated Dec. 21, 1992, the
Argentine Government granted MetroGAS an exclusive license to
provide the public service of natural gas distribution in the area
of the Federal Capital and southern and eastern Greater Buenos
Aires, by operating the assets allocated to the Company by GdE for
a 35 year period from the Takeover Date (Dec. 28, 1992). This
period can be extended for an additional 10 year period under
certain conditions.
MetroGAS' controlling shareholder is Gas Argentino S.A. ("Gas
Argentino") who holds 70% of the Common Stock of the Company. The
20%, which was originally owned by the National Government, was
offered in public offering and the remaining 10% is under the
Employee Stock Ownership Plan ("Programa de Propiedad Participada"
or "PPP").
Going Concern Doubt
Price Waterhouse & Co. S.R.L., in Buenos Aires, Argentina,
expressed substantial doubt about MetroGas S.A.'s ability to
continue as a going concern, following the Company's 2011 results.
The independent auditors noted of the uncertainties related to the
suspension of the original regime for tariff adjustments and the
Company's petition for voluntary reorganization in an Argentine
Court on June 17, 2010.
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B E R M U D A
=============
BURROWS CONSTRUCTION: Court to Hear Wind-Up Petition on Oct. 26
---------------------------------------------------------------
A petition to wind up the operations of Burrows Construction Ltd
will be heard before the Supreme Court of Bermuda on Oct. 26,
2012, at 9:30 a.m.
INVESTMENT RESEARCH: Creditors' Proofs of Debt Due Oct. 12
----------------------------------------------------------
The creditors of Investment Research Limited are required to file
their proofs of debt by Oct. 12, 2012, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Sept. 26, 2012.
The company's liquidator is:
Robin J. Mayor
Clarendon House, 2 Church Street
Hamilton HM 11
Bermuda
INVESTMENT RESEARCH: Members' Final Meeting Set for Oct. 31
-----------------------------------------------------------
The members of Investment Research Limited will hold their final
meeting on Oct. 31, 2012, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company commenced wind-up proceedings on Sept. 26, 2012.
The company's liquidator is:
Robin J. Mayor
Clarendon House, 2 Church Street
Hamilton HM 11
Bermuda
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B R A Z I L
===========
BANIF-BANCO: Moody's Withdraws 'E+' BFSR, 'B2' Deposit Ratings
--------------------------------------------------------------
Moody's Investors Service has withdrawn Banif-Banco Internacional
do Funchal (Brasil), S.A.'s (Banif Brasil) bank financial strength
rating (BFSR) of E+ and global local currency and foreign currency
deposit ratings of B2 and Not Prime. At the same time, Moody's has
withdrawn the Brazilian national scale deposit ratings of Ba1.br
and BR-3. Before the withdrawal, the BFSR had stable outlook and
all deposit ratings had negative outlook.
Ratings Rationale
Moody's has withdrawn the ratings for its own business reasons.
The last rating action on Banif Brasil occurred on October 11,
2011, when Moody's downgraded Banif Brasil's long-term global
local and foreign currency deposit ratings to B2 from B1 and
Brazilian national scale deposit ratings to Ba1.br and BR-3 from
Baa1.br and BR-2. At the same time, Moody's confirmed Banif
Brasil's BFSR at E+. Moody's also lowered unsupported baseline
credit assessment (BCA) to b3 from b2.
Banif - Banco Internacional do Funchal (Brasil) S.A. is
headquartered in Sao Paulo, Brazil. As of June 30, 2012, the bank
had total assets of approximately R$2.06 billion (US$1.02 billion)
and equity of R$164 million (US$81 million).
The following ratings assigned to Banif Brasil were withdrawn:
Bank Financial Strength Rating: E+, stable outlook
Global Local Currency Deposit Ratings: B2 and Not Prime, negative
outlook
Foreign Currency Deposit Ratings: B2 and Not Prime, negative
outlook
Brazilian National Scale Deposit Ratings: Ba1.br and BR-3,
negative outlook
OAS INVESTMENTS: Fitch Puts Rating $300-Mil Sr. Notes at 'B'
------------------------------------------------------------
Fitch Ratings has assigned a 'B' rating to OAS Investments GmbH's
Issuer Default Rating (IDR) and a 'B'/'RR4' rating to its first
proposed issuance of USD300 million to USD500 million in senior
notes due 2019.
The notes are unconditionally guaranteed by OAS S.A. (OAS),
Construtora OAS Ltda (Construtora OAS) and OAS Investimentos
(OASI). The majority of this new issuance proceeds will mostly be
used to refinance indebtedness.
Fitch currently rates OAS Group as follows:
OAS S.A.:
-- Long-Term Foreign Currency IDR 'B';
-- Long-Term Local Currency IDR 'B';
-- Long-Term National Rating 'BBB(bra)';
Construtora OAS Ltda. (Construtora OAS):
-- Long-term Foreign Currency IDR 'B';
-- Long-term Local Currency IDR 'B';
-- Long-term National Rating 'BBB(bra)'.
OAS Empreendimentos S.A. (OAS Empreendimentos):
-- Long-term National Rating 'BB+(bra)' (BB plus (bra)).
The Outlook for the corporate ratings is Stable.
The ratings reflect the expertise and the position of the OAS
group as one of the five largest contractors in the domestic civil
construction sector by revenues, and its long track record in
engineering and heavy construction in Brazil. The ratings also
incorporate increased consolidated leverage, combined with
operating margins lower than the industry average. The ratings
also factor the backlog concentration in nine large works;
business inherent volatility; the challenges of the recent surge
of the homebuilding company of the group; and the increased
financing needs to support the group's business growth strategy.
Fitch expects the maintenance of OAS's adequate cash position to
support the growth phase of its business segments and the short
term debt. The agency also expects the maintenance of current
leverage position even under some pressure of debt. A retraction
in group's liquidity position will negatively pressure the
ratings.
Recovering operating margins on a consistent basis has continued
to be a challenge for the OAS Group. Fitch also expects that the
company will manage the relevant new projects (Of OAS and OAS
Investments S.A. (OAS Investments), without substantially
impacting its capital structure and liquidity position. The
company will have to control costs in the heavy construction
sector, increase the contribution of results from infrastructure
segment and recover the operating results of real estate
construction in 2012 and 2013.
The Construtora OAS is the main operating company and group's cash
generator. The Construtora OAS has the same ratings as the
controller OAS, since it is the main operating company of group
OAS. The company is 100% controlled by and operationally
integrated to OAS, besides being the guarantor of 40% of the
consolidated corporate debt, net of 'Project Finance' financings.
During the last 12 months ended on June 30, 2012, Construtora OAS
represented 80% of the group's consolidated revenue and 20% of
EBITDA. Historically its contribution for group's consolidated
EBITDA is around 50% and 55%.
Cancellation and Interruption of Works Weakens Operating
Performance
The pace of operating margins recovery shown in 2011 was
interrupted by the standstill of two relevant works of OAS's
international portfolio. The consolidated impact of the
interruption of these two works is estimated around BRL200 million
in the half-yearly revenues, besides the impacts of demobilization
costs. One of these works should generate a negative impact in the
2012 third quarter revenue, estimated at around BRL45 million. On
the other hand, the startup of relevant works, such as Guarulhos
Airport, Parque Via Rimac and Canta Lima should positively
contribute to increment the revenue stream of Construtora OAS in
coming years.
During the last 12 months ended on June 30, 2012, OAS recorded
consolidated adjusted EBITDA of BRL221 million, as per Fitch's
criteria, and EBITDA margin of 4.1%, as compared to BRL350 million
and 7.6% in 2011. Fitch expects Construtora OAS to achieve
partial recovery of its operating margin in the second half of
2012 and returns in 2013 to the margin levels recorded in 2011,
thus contributing for the recovery of group OAS consolidated
operating profitability.
Historically Strong Liquidity
The group's liquidity is robust. Its relevant cash position has
been an important factor for sustaining the group's ratings, and
limiting the risks associated to the weak operating performance
during the first half of the year. Fitch expects OAS to preserve
satisfactory liquidity cash reserve to support the growth phase of
its backlog and group's working capital needs and keep advancing
in its strategy of lengthening its consolidated debt profile.
The expansion of new businesses of the group resulted in a
significant increase on consolidated debt. On June 30, 2012, OAS
reported consolidated position of cash and marketable securities
of BRL1.869 million and total debt of BRL4.869 million, compared
with BRL1.465 million and BRL3.753 million, respectively, at year-
end 2011. Cash reserves were sufficient to cover 146% of the
short-term consolidated debt of BRL1.282 million. The group
contracted financing for the relevant infrastructure concession
segment. From the total consolidated debt, BRL1.4 billion was
related to projects that have financing facilities structured in
the modality of 'Project Finance'.
Leverage Should Remain High
The group's aggressive business expansion in heavy construction
and the investments in infrastructure concessions and in real
estate have resulted in a significant increase of OAS'
consolidated debt. The deterioration in consolidated operating
margins has also contributed to leverage worsening in June 2012.
OAS net leverage, measured by net debt/EBITDA ratio was of 13.6x
at the end of June 2012, against 6.5x at year-end 2011 and 8.1x at
year-end 2010.
The adjusted leverage excluding the debt and the cash generation
from the projects was of total debt/EBITDA of 10.4x and net
debt/EBITDA of 4.7x on a net basis, if excluding the non-recurring
losses reported in the period. For the next three years it is not
expected relevant flow of dividends from these projects that could
benefit group's adjusted EBITDA.
Fitch expects that during 2013 the adjusted leverage should remain
at same level of June 2012, excluding the non-recurring
adjustments.
Participation in Invepar Should Not Pressure OAS Cash Flow
In March 2012, OAS increased its participation in Investimentos e
Participacoes em Infraestrutura S.A. (Invepar) to 25% of the total
capital. Fitch's believes OAS cash flow should not be pressured
by Invepar investments. However, any potential new debts by
Invepar to face the high investments made in the consortium for
Guarulhos Airport (SP) should generate some pressure on OAS
leverage, on a consolidated basis, including debt related to
Project Finance, since the group consolidates 25% of Invepar.
Robust Backlog Ensures Growth & Expansion of Concessions
During the first semester of 2012 there was a slight contraction
in OAS work backlog. In June, the total backlog was BRL17.8
billion and reflected the cancellation of relevant work in Bolivia
estimated at BRL598 million. The current work backlog and the
positive scenario for the infrastructure sector should ensure the
group's growth in the next periods, both in its activities as
subcontractor and in the concession area.
Key Rating Drivers
Future developments that may, individually or collectively, lead
to a negative rating action include:
-- Non-recovery or a new reduction of operating margins and
credit metrics due to downturns in the heavy construction
activities or increase in execution costs. Such scenarios
would further pressure margins and reduce capacity to
generate operating cash.
-- A weaker cash position and higher leverage could also result
in a rating downgrade.
Future developments that may, individually or collectively, lead
to a positive rating action include:
-- A consistent evolution of the consolidated operating results,
combined with maintenance of strong liquidity position, and
lengthened schedule of debt amortization.
OAS INVESTMENTS: S&P Gives 'BB-' Rating on Senior Unsecured Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' rating to
the senior notes to be issued by OAS Investments GmbH, a wholly
owned subsidiary of Brazil-based infrastructure company OAS S.A.
(OAS). The notes will be unconditionally guaranteed by OAS and its
operating subsidiaries Construtora OAS Ltda. and OAS Investimentos
S.A. The company will use the proceeds of the issuance primarily
to refinance existing debt.
The 'BB-' corporate rating on OAS reflects its "fair" business
risk profile and "aggressive" financial risk profile. "The rating
also reflects the company's high indebtedness that resulted from
its aggressive growth strategy in previous years and some
execution risks associated with the ramp-up of its main
investments. Positive rating factors include OAS' favorable market
position in Brazilian engineering and construction (E&C) industry
and our expectation that the company's growth appetite will
moderate and financial leverage decrease in the next few years,"
S&P said.
"The stable outlook assumes that OAS will consistently improve
credit metrics over the next few years not only through stronger
cash flows but also with some marginally adjusted debt reduction.
The outlook reflects our expectations that OAS will maintain
sufficient cash reserves at its E&C operation to handle seasonal
working-capital swings and that its equity contributions to
projects will be modest. We expect adjusted total debt to EBITDA
of less than 6.0x by 2013 and lower afterwards," S&P said.
"A downgrade could result from OAS' failure to improve credit
metrics throughout 2013 due to slower improvement in cash flow
(which could come from weaker performance at the E&C company or
larger cost overruns at its homebuilding operation) or from
financial support for its projects (which could result from the
sports arenas facing cost overruns). An upgrade would depend on
adjusted total to EBITDA dropping below 4.0x, which we believe is
possible when the new projects start contributing dividend streams
to OAS by 2014," S&P said.
RATING LIST
OAS S.A.
Corporate Credit Rating BB-/Stable
OAS Investments GmbH
Senior unsecured notes BB-
==========================
C A Y M A N I S L A N D S
==========================
CLEAN RESOURCES: Members Receive Wind-Up Report
-----------------------------------------------
The members of Clean Resources Long Only Fund Limited received on
Oct. 8, 2012, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Richard Finlay
c/o Tania Dons
Telephone: (345) 814 7766
Facsimile: (345) 945 3902
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
CLEAN WATER ASIA: Members Receive Wind-Up Report
------------------------------------------------
The members of Clean Water Asia Fund Limited received on Oct. 8,
2012, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Richard Finlay
c/o Tania Dons
Telephone: (345) 814 7766
Facsimile: (345) 945 3902
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
CLEAN WATER LONG: Members Receive Wind-Up Report
------------------------------------------------
The members of Clean Water Asia Long Only Fund Limited received on
Oct. 8, 2012, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Richard Finlay
c/o Tania Dons
Telephone: (345) 814 7766
Facsimile: (345) 945 3902
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
CLEAN WATER (OFFSHORE): Members Receive Wind-Up Report
------------------------------------------------------
The members of Clean Water (Offshore) Fund Limited received on
Oct. 8, 2012, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Richard Finlay
c/o Tania Dons
Telephone: (345) 814 7766
Facsimile: (345) 945 3902
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
CLEAN WATER ONLY: Members Receive Wind-Up Report
------------------------------------------------
The members of Clean Water Long Only Fund Limited received on
Oct. 8, 2012, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Richard Finlay
c/o Tania Dons
Telephone: (345) 814 7766
Facsimile: (345) 945 3902
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
FIELD POINT I: Shareholders' Final Meeting Set for Oct. 12
----------------------------------------------------------
The shareholders of Field Point I, Ltd. will hold their final
meeting on Oct. 12, 2012, at 2:15 p.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
KENT FUNDING II: Shareholders' Final Meeting Set for Oct. 12
------------------------------------------------------------
The shareholders of Kent Funding II, Ltd. will hold their final
meeting on Oct. 12, 2012, at 1:00 p.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
OFFSHORE GROUP: Moody's Affirms 'B3' CFR/PDR; Outlook Negative
--------------------------------------------------------------
Moody's Investors Service changed Offshore Group Investment
Limited's (OGIL) rating outlook to negative from stable and
assigned a B3 rating to the company's proposed US$500 million
senior secured term loan and US$1.15 billion senior secured notes.
Moody's also affirmed OGIL's B3 Corporate Family Rating (CFR),
Caa1 Probability of Default Rating (PDR), and B3 rating on OGIL's
existing 11.50% senior secured notes.
Net proceeds from these debt offerings will be used to refinance
up to $1.0 billion of existing 11.50% notes through a tender offer
and to fund the upcoming $415 million final shipyard payment to
Daewoo Shipbuilding & Marine Engineering for Tungsten Explorer -
an ultra-deepwater drillship that is scheduled for delivery in May
2013.
"The negative outlook captures OGIL's very high leverage, as well
as the contracting and inherent start-up risks surrounding the
third drillship, which will start generating cash flow in the
second half of 2013 ," said Sajjad Alam, Moody's Analyst. "Despite
an improved liquidity and debt maturity profile, until OGIL
establishes a clear deleveraging trend, the CFR will remain weakly
positioned in the B3 rating category."
Issuer: Offshore Group Investment Limited
Assignments:
Senior Secured Bank Credit Facility, Assigned B3
Senior Secured Bank Credit Facility, Assigned a range of
LGD3, 33%
Senior Secured Regular Bond/Debenture, Assigned B3
Senior Secured Regular Bond/Debenture, Assigned a range
LGD3, 33%
Outlook Actions:
Outlook, Changed To Negative From Stable
Ratings Rationale
The B3 CFR reflects OGIL's very high financial leverage (proforma
LTM Debt to EBITDA of approximately 12.5x at June 30, 2012), small
scale within the offshore contract drilling industry, and limited
operating history in an increasingly competitive global marine
drilling market. The rating also considers the capital intensive
and highly cyclical nature of offshore drilling activities, the
short-term nature of jackup rig contracts, which limits revenue
visibility, and the mobilization and contracting risks involving
OGIL's third drillship (Tungsten Explorer). The rating is
supported by OGIL's mostly new high quality assets, diversified
geographic presence, and the company's short but good operating
track record, which has facilitated strong utilization and better-
than-average dayrates. The rating is also underpinned by the long
term drilling contracts of the Platinum Explorer and Titanium
Explorer drillships, and the robust industry fundamentals of the
ultra-deepwater segment. Platinum Explorer has a five-year
contract (roughly three years remaining) with Oil and Natural Gas
Ltd. (Baa1 stable) of India and Titanium Explorer has an eight-
year contract with Petrobras (A3 stable) of Brazil.
Given the preponderance of a single class of debt in the capital
structure, OGIL's notes and term loan are rated at the B3 CFR
level. The Caa1 PDR reflects the heightened risk of default given
OGIL's high leverage and resultant susceptibility to deterioration
in operating performance and cash flow at any of its material
assets. The one notch differential in the CFR and PDR considers
OGIL's high quality assets, particularly the ultra-deepwater
drillships that secure the rated debt. In light of this security,
a 65% recovery factor is assumed under Moody's Loss Given Default
methodology.
The proposed senior secured notes and term loan will rank pari
passu with the existing 11.50% notes and have upstream guarantees
from the operating companies that own OGIL's four premium jack-up
rigs and two drillships (Platinum Explorer and Titanium Explorer).
The third drillship, Tungsten Explorer will be added to the
security and guarantee package when OGIL takes delivery of this
rig in 2013. The notes and term loan also have a downstream
guarantee from Vantage Drilling Corporation - the parent holding
company, as well as guarantees from certain Vantage subsidiaries.
The notes and the term loan do not have guarantees from Vantage's
subsidiaries that are involved in its rig construction or
management services business.
Moody's expects OGIL to have adequate liquidity through the end of
2013, which is captured in its SGL-3 rating. The debt proceeds
along with cash flows from Platinum Explorer and other operating
rigs will permit OGIL to sufficiently cover the final delivery
payment for Tungsten Explorer, semi-annual coupon payments, and
other capital expenditures and working capital needs throughout
2013. OGIL has a $25 million revolving credit facility, which
Moody's views to be very small relative to its revenue and asset
base. The company's alternate liquidity is limited given all of
its rigs are pledged to the note and term loan lenders.
The outlook could return to stable once Tungsten Explorer is
successfully mobilized under a long term drilling contract and
leverage is reduced below 8x on an LTM EBITDA basis.
For a rating upgrade, Moody's would look for ongoing strong
utilization rates for all rigs and leverage that appears poised to
approach 5.0x.
Given the company's high leverage, a decline in EBITDA will likely
be the primary driver of a downgrade whether resulting from
contract termination, contract re-pricing or unexpected downtime.
A downgrade could also occur from a leveraging transaction or if
it appears that OGIL may not have sufficient liquidity to fund the
next two coupon payments on its notes.
The principal methodology used in rating Offshore Group was the
Global Independent Exploration and Production Industry Methodology
published in December 2011. Other methodologies used include Loss
Given Default for Speculative-Grade Non-Financial Companies in the
U.S., Canada and EMEA published in June 2009.
Offshore Group Investment Limited is a wholly owned subsidiary of
Vantage - an offshore drilling contractor headquartered in the
Cayman Islands.
PACIFIC ESPLANADE: Shareholder Receives Wind-Up Report
------------------------------------------------------
The shareholder of Pacific Esplanade Investment Fund G.P. received
on Oct. 3, 2012, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Wing Sze Tiffany Wong
KPMG
Prince's Building, 8th Floor
10 Chater Road
Central, Hong Kong
c/o Jessica Wu
Telephone: +852 2140 2251
Facsimile: +852 2869 7357
TOKYOR ASSET: Shareholder to Hear Wind-Up Report on Oct. 10
-----------------------------------------------------------
The shareholder of Tokyor Asset Management Ltd. will receive on
Oct. 10, 2012, at 9:30 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Ogier
c/o Jacqueline Haynes
Telephone: (345) 815-1803
Facsimile: (345) 949-9877
WOLFACRE GLOBAL: Shareholders' Final Meeting Set for Oct. 12
------------------------------------------------------------
The shareholders of Wolfacre Global Master Fund, Ltd. will hold
their final meeting on Oct. 12, 2012, at 1:30 p.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
==================================
D O M I N I C A N R E P U B L I C
==================================
* DOMINICAN REPUBLIC: Government to Cut Spending by US$1.53BB
-------------------------------------------------------------
Dominican Today reports that Economy Minister Temistocles Montas
on Monday said the Dominican Republic government will adopt
austerity measures to cut spending by as much as RD$60.0 billion
(US$1.53 billion), or around 2.3% of the GDP.
In response to demands by some sectors, such as the National
Business Council (CONEP) that the government must cut spending
prior to submitting the tax reform package, the official said
around RD$48.0 billion in capital investment will be immediately
cut, according to the report.
The report notes that Mr. Montas said nearly RD$5.0 billion in
funds allocated to the energy sector will also be cut, and around
RD$3.0 billion less for goods and services. "We're saying that
the austerity measures which the government will implement will
mean from 55 to 60 billion pesos next year," the report quoted Mr.
Montas as saying.
The report notes that Mr. Montas said the diplomatic and consular
corps will be rationalized this month and the issue of deputy
ministers has already been solved, because the law is being
complied with stipulates no more than six in the various
ministries.
Mr. Montas said despite the fiscal deficit, the country's economic
condition remains stable because there's neither runaway inflation
nor exchange rate, the report adds.
=============
G R E N A D A
=============
GRENADA: S&P Cuts Foreign Sovereign Credit Ratings to 'SD'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered its foreign currency
sovereign credit ratings on Grenada to 'SD', selective default,
from 'B-/B'. "At the same time, we lowered our local currency
sovereign credit ratings on Grenada to 'CCC+/C' from 'B-/B'.
The outlook on the long-term local currency rating is negative,"
S&P said.
"The downgrade to 'SD' follows the government's failure to pay the
coupon due Sept. 15, 2012, on its US$193 million bond due in
2025," said Standard & Poor's credit analyst Richard Francis. "In
its Sept. 12, 2012, statement to bondholders, the government of
Grenada stated its intention to use its best efforts to pay the
coupon within a 30-day grace period. However, according to our
criteria (cited below), we consider an obligation in default
unless payment is made within five business days of the due date,
regardless of any grace period."
"Although the government restructured its foreign currency debt
after Hurricane Ivan destroyed much of the island in 2004, the
debt burden remained high and has continued to grow," said Mr.
Francis. "Before this default, which we believe will depress the
economy further, we had projected real GDP per capita growth at
just over 1% in 2013 and net government debt at 80% of GDP at
year-end 2012. Liquidity pressures are reflected in the
government's recent wage arrears as well as the missed debt
service payments to official bilateral creditors and the default
on the foreign currency bond."
"The government's difficulty in servicing its U.S. dollar debt and
paying public-sector wages may presage servicing risks to its
Eastern Caribbean dollar-denominated bond, as well as its Eastern
Caribbean dollar-denominated treasury bills. The local currency
bond was also part of the 2005 debt restructuring. Accordingly, we
have lowered the long-term local currency rating to 'CCC+' with a
negative outlook and the short-term local currency rating to 'C',"
S&P said.
"Once the government cures its foreign currency debt default, we
will assign forward-looking foreign currency ratings. We will
comment on the likely foreign currency ratings as the government's
liquidity situation and future debt payment plans become clear,"
S&P said.
"We could raise our local currency rating on Grenada if the
government's liquidity pressures ease within the coming months.
Conversely, if the government's liquidity pressures intensify, the
rating could come under additional pressures," S&P said.
=============
J A M A I C A
=============
* JAMAICA: S&P Affirms 'B-/B' Sovereign Credit Ratings
------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B-/B' long- and
short-term sovereign credit ratings on Jamaica. The outlook
remains negative. The 'B' transfer and convertibility (T&C)
assessment remains unchanged.
"Our ratings on Jamaica reflect its high general government debt
and interest burden; limited fiscal, monetary, and external
flexibility; and low growth prospects," said Standard & Poor's
credit analyst Joydeep Mukherji. "They also reflect the country's
political stability and relatively developed domestic capital
markets."
"The country's continued low growth prospects, with GDP likely to
expand only 1% or less this year, along with a recently declining
trend in the level of foreign exchange reserves, highlight its
credit weaknesses. The general government debt burden was about
126% of GDP in 2011, and we expect it to remain at a similar level
in 2013," S&P said.
"The negative outlook incorporates our expectation that the
government will continue to rely on the domestic capital market,
multilateral funding, and possible international issuances to
finance its fiscal and external gap in the short term. We also
expect that the government will take additional measures in case
lower-than-expected GDP growth or higher-than-expected increases
in the public-sector salary bill threaten to undermine its budget
targets for the current fiscal year," S&P said.
"A prolonged loss of foreign exchange reserves could weaken
investor confidence and raise the risk of greater exchange rate
volatility, which could exacerbate the government's already high
debt burden," said Mr. Mukherji. "If the government fails to
stabilize Jamaica's external account, the resulting further loss
of external liquidity would likely lead to a lower rating."
"Conversely, we could revise the outlook to stable if the
government is able to staunch the recent loss of external
liquidity, as well as present a credible medium-term economic
plan--likely along with a new agreement with the IMF--that begins
to reduce its high debt burden and leads to better prospects
for economic growth," said Mr. Mukherji.
===========
M E X I C O
===========
BANCO CREDIT: Moody's Withdraws D+ Bank Financial Strength Rating
-----------------------------------------------------------------
Moody's Investors Service has withdrawn Banco Credit Suisse Mexico
S.A. (Credit Suisse Mexico)'s ratings including: (i) bank
financial strength rating (BFSR) of D+, mapping from a standalone
baseline credit strength of ba1; (ii) long and short term global
local currency (GLC) ratings of Baa1 and Prime-2, respectively;
(iii) long and short term foreign currency ratings of Baa1 and
Prime-2. Moody's de Mexico has also withdrawn Credit Suisse Mexico
's long and short term Mexican National Scale ratings of Aaa.mx
and MX-1. The outlook on all the ratings before the withdrawal was
stable.
On the same date, Moody's withdrew Casa de Bolsa Credit Suisse
Mexico, S.A. (CB Credit Suisse)'s long and short term GLC issuer
ratings of Baa1 and P-2. Moody's de Mexico has also withdrawn CB
Credit Suisse's long and short term Mexican National Scale ratings
of Aaa.mx and MX-1. The outlook on all ratings before the
withdrawal was stable.
Ratings Rationale
Moody's has withdrawn the rating for business reasons.
The methodologies used in these ratings were Moody's Consolidated
Global Bank Rating Methodology published in June 2012 and Global
Securities Industry Methodology published in 2006.
The last rating action on Credit Suisse Mexico and CB Credit
Suisse's was on June 28, 2012, when Moody's downgraded both the
bank's and brokerage house's global local currency ratings to Baa1
from A2, and concluded the review for downgrade on ten Mexican
financial institutions.
Moody's National Scale Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within
a country, enabling market participants to better differentiate
relative risks. NSRs differ from Moody's global scale ratings in
that they are not globally comparable with the full universe of
Moody's rated entities, but only with NSRs for other rated debt
issues and issuers within the same country. NSRs are designated by
a ".nn" country modifier signifying the relevant country, as in
".mx" for Mexico.
The following ratings on Credit Suisse Mexico were withdrawn:
Bank Financial Strength Rating of D+
Long term global local currency deposit rating of Baa1
Short term global local currency deposit rating of Prime-2
Long term foreign currency deposit rating of Baa1
Short term foreign currency deposit rating of Prime-2
Long term global local currency senior unsecured provisional debt
rating of (P)Baa1
Short term global local currency senior unsecured provisional
debt rating of Prime-2 and (P)Prime-2
Long term foreign currency senior unsecured provisional debt
rating of (P)Baa1
Short term foreign currency senior unsecured provisional debt
rating of (P)Prime-2
Long term National Scale deposit rating of Aaa.mx
Short term National Scale deposit rating of MX-1
Long term National Scale senior unsecured provisional debt rating
of Aaa.mx
Short term National Scale senior unsecured provisional debt
rating of MX-1
The following CB Credit Suisse 's ratings were withdrawn:
Long term global local currency issuer rating of Baa1
Short term global local currency issuer rating of Prime-2
Long term National Scale issuer rating of Aaa.mx
Short term National Scale issuer rating of MX-1
CERVECERIA NACIONAL: Moody's Withdraws 'B1' Corp. Family Rating
---------------------------------------------------------------
Moody's Investors Service withdrew the B1 corporate family rating
of Cerveceria Nacional Dominicana, S.A. (CND) due to business
reasons. There were no ratings assigned to specific debt
instruments.
Ratings Rationale
Moody's has withdrawn the rating for its own business reasons.
Moody's last rating action on CND was on April 17, 2012, when the
agency affirmed CND's corporate family rating of B1 and changed
the outlook to positive from stable.
The principal methodology used in rating Cerveceria Nacional
Dominicana, S.A. was the Global Alcoholic Beverage Rating
Methodology published in August 2009.
Headquartered in Santo Domingo, Dominican Republic, Cerveceria
Nacional Dominicana, S.A. is the leading brewer in Dominican
Republic. Total domestic revenues account for approximately 90% of
total sales, exports represent around 5% and its Caribbean
operation accounts for the balance. The company's domestic sales
include beer, malt and rum out of which beer sales represent
around 86.5% of total domestic revenues. Since May, 2012, the
company has been controlled by Bebidas das Americas-AmBev which
acquired a 51% interest in the company. In 2011, the company
reported revenues of DOP17,602 million (approximately US$460
million) and EBITDA of DOP4,891 million (approximately US$128
million).
===============================
T R I N I D A D & T O B A G O
===============================
PETROTRIN: Trinidad Government Owes Firm Over $7 Billion
--------------------------------------------------------
Trinidad Express reports that the Trinidad and Tobago Energy
Chamber President Roger Packer said government owes State oil
company Petroleum Company of Trinidad and Tobago (Petrotrin) more
than $7 billion for unpaid gasoline and subsidies since 2011.
Mr. Packer noted that Petrotrin has been challenged in delivering
capital investment projects by the fact that the company is owed
$7 billion in subsidy payments, according to Trinidad Express.
"This is hidden national debt which needs to be taken into account
when assessing the impacts of the fuel subsidy," the report quoted
Mr. Packer as saying.
The report notes that Trinidad and Tobago Electricity Commission
is also owing the National Gas Company about $300 million for
subsidized gas, it was disclosed.
The report relates that Finance Minister Larry Howai responded to
questions about these debts, telling reporters that later this
week or next, a plan would be implemented to sort out what was
owed to Petrotrin.
Minister Howais aid a loan arrangement over 15 years has also been
worked out for T&TEC's debt to the NGC, the report adds.
Petroleum Company of Trinidad and Tobago is the major state-owned
oil company in Trinidad and Tobago. The company was established
in 1993 by the merger of Trintopec and Trintoc, two state-owned
oil companies. Petrotrin's main holdings are extensive, mature
onshore fields located across southern Trinidad. Large areas
have been leased out to small private producers who are able to
make a profit on wells that are unprofitable for Petrotrin,
giving it higher labor costs. The company operates a refinery at
Pointe-Pierre, just north of San Fernando in south Trinidad.
Most crude petroleum produced in Trinidad is exported without
being refined. The refinery depends on imported crude (mostly
from Venezuela), which is either used domestically or exported.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 9, 2010, Trinidad Express related that four members of
Petrotrin submitted their resignation letters. According to the
report, Malcom Jones resigned as chairman of Petrotrin and from
the State boards. The report related board members Lawford
Dupres, who chaired the National Petroleum board, attorney Kerwin
Garcia and Andrew McIntosh had also resigned. Prime Minister
Kamla Persad-Bissessar, the report noted, said that Cabinet had
ordered a forensic audit of Petrotrin as there were "grounds for
suspicion of misconduct" at Petrotrin similar to what may have
transpired at special-purpose State enterprise UDeCOTT. The
report said that the company was experiencing serious financial
difficulties resulting in high cost overruns of its refinery
upgrade. The situation was exacerbated by a US$12 billion
lawsuit by World GTL Inc. against Petrotrin, the report added.
===============
X X X X X X X X
===============
* Moody's Says Global Corporate Default Rate Up 3% in 3Q2012
------------------------------------------------------------
The trailing 12-month global speculative-grade default rate
finished the third quarter of 2012 at 3.0%, up slightly from 2.9%
in the second quarter, Moody's Investors Service says in its
monthly default report. A year ago, the default rate stood at
1.8%.
In the US, the speculative-grade default rate ended the third
quarter at 3.5%, up from 3.2% in the previous quarter. A year ago,
the US default rate was 2.0%. In Europe, the default rate edged
lower in the third quarter of 2012, to 2.6%, compared with 2.8% in
second quarter and 1.4% this time last year.
Based on its forecasting model, Moody's expects the global
speculative-grade default rate to end this year at 3.0%, before
declining to 2.9% by the end of the third quarter 2013. Both
rates, if realized, will be well below the historical average of
4.8% since 1983. Moody's further expects the rate to be 3.5% by
year's end in the US, while declining to 2.4% in Europe.
"The corporate default rate has remained low and stable for some
time now, despite some very weak economic fundamentals," notes
Albert Metz, Managing Director of Moody's Credit Policy Research.
"With ample liquidity available, we are not expecting that to
change over the coming months."
There were nine defaults among Moody's-rated corporate debt
issuers in the third quarter of 2012, seven in North America and
the remaining two in Europe and Latin America. So far this year
there have been 46 defaults in total, compared with 17 in the
first nine months of last year.
By dollar volume, the global speculative-grade bond default rate
held steady from quarter to quarter, to close the third at 2.0%,
up from 1.2% at the same time last year.
In the US, the dollar-weighted speculative-grade bond default rate
ended the third quarter at 1.6%, also unchanged from the second
quarter and compared with 1.2% a year ago. In Europe, the dollar-
weighted speculative-grade bond default rate came in at 3.3% in
the third quarter, down from 3.7% in the second, and up from 1.5%
a year ago.
In the coming year, Moody's expects default rates to be highest in
the Media: Advertising, Printing & Publishing sector in the US and
the Hotel, Gaming & Leisure sector in Europe.
Moody's distressed index ended the third quarter at 17.0%, down
from 19.5% in the previous quarter and 24.6% in the same period
last year. The distressed index is a measure of the percentage of
high-yield issuers whose debt is trading at distressed levels.
In the leveraged loan market, two Moody's-rated companies
defaulted on their loans in the third quarter of 2012, including
Marsico Parent Company, LLC, which defaulted in September. There
was just one default in the third quarter of last year. The
trailing 12-month US leveraged loan default rate ended the third
quarter at 2.6%, up from 2.4% in the second and 1.2% a year ago.
***********
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 * * *