---

        T R O U B L E D   C O M P A N Y   R E P O R T E R

                     L A T I N   A M E R I C A

           Friday, December 7, 2012, Vol. 13, No. 244


                            Headlines



A R G E N T I N A

AKKRUM SA: Creditors' Proofs of Debt Due Dec. 12
ESTHETICS GROUP: Creditors' Proofs of Debt Due Dec. 13
GAMES SA: Creditors' Proofs of Debt Due Dec. 10
IDEP SA: Creditors' Proofs of Debt Due Dec. 5
SPINDLE SRL: Creditors' Proofs of Debt Due Dec. 18


B E R M U D A

ABILITY INSURANCE: A.M. Best Downgrades FSR to 'B'


B R A Z I L

AMPLA ENERGIA: S&P Revises Outlook on 'BB' CCRs to Positive
JSL SA: Fitch Upgrades IDR to 'BB'; Outlook Stable


C A Y M A N  I S L A N D S

BOULDER FUNDING: Creditors' Proofs of Debt Due Dec. 7
CAPRI OVERSEAS: Creditors' Proofs of Debt Due Dec. 4
CBRE ASIA: Placed Under Voluntary Wind-Up
CJ 2002A: Creditors' Proofs of Debt Due Dec. 10


E C U A D O R

* ECUADOR: Quito Gets $200MM IDB Loan for Urban Transportation


E L  S A L V A D O R

* EL SALVADOR: Fitch Rates $800MM Global Bonds Due 2025 'BB'


J A M A I C A

LIME JAMAICA: Appoints Carlo Redwood to Lead Marketing Team


M E X I C O

AXTEL SAB: S&P Affirms 'CCC+' Corporate Credit Rating
BANCO AGRICOLA: S&P Affirms 'BB-/B' Issuer Credit Ratings
BANCO DAVIVIENDA: S&P Affirms 'BB-/B' Issuer Credit Ratings
BANCA MONTE: S&P Cuts Counterparty Credit Ratings to 'BB+/B'
CONTROLADORA MABE: S&P Affirms 'BB+' Issuer Credit Rating

MAXCOM TELECOMUNICACIONES: Moody's Affirms 'Caa1' Ratings


T R I N I D A D  &  T O B A G O

CL FIN'L: Archaic Laws Made Regulation "Virtually Impossible"


                            - - - - -


=================
A R G E N T I N A
=================


AKKRUM SA: Creditors' Proofs of Debt Due Dec. 12
------------------------------------------------
Liliana Maria Montero, the court-appointed trustee for Akkrum SA's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until Dec. 12, 2012.

Ms. Montero will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 20 in Buenos Aires, with the assistance of Clerk
No. 39, 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:

         Liliana Maria Montero
         Piedras 1170
         Argentina


ESTHETICS GROUP: Creditors' Proofs of Debt Due Dec. 13
------------------------------------------------------
Victor Jose Noriega, the court-appointed trustee for Esthetics
Group SRL's bankruptcy proceedings, will be verifying creditors'
proofs of claim until Dec. 13, 2012.

Mr. Noriega will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 21 in Buenos Aires, with the assistance of Clerk
No. 41, 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:

         Victor Jose Noriega
         Juana Azurduy 3443
         Argentina


GAMES SA: Creditors' Proofs of Debt Due Dec. 10
-----------------------------------------------
Ricardo Jose Roussy, the court-appointed trustee for Games SA's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until Dec. 10, 2012.

Mr. Roussy will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 11 in Buenos Aires, with the assistance of Clerk
No. 22, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.

The Trustee can be reached at:

         Ricardo Jose Roussy
         Florida 253
         Argentina


IDEP SA: Creditors' Proofs of Debt Due Dec. 5
---------------------------------------------
Juan Jose Romanelli, the court-appointed trustee for Idep SA's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until Dec. 5, 2012.

Mr. Romanelli will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 9 in Buenos Aires, with the assistance of Clerk
No. 17, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.

The Trustee can be reached at:

         Juan Jose Romanelli
         Gandara 2700
         Argentina


SPINDLE SRL: Creditors' Proofs of Debt Due Dec. 18
--------------------------------------------------
Juan J. Roberto Esturo, the court-appointed trustee for Spindle
SRL's bankruptcy proceedings, will be verifying creditors' proofs
of claim until Dec. 18, 2012.

Mr. Esturo will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 22 in Buenos Aires, with the assistance of Clerk
No. 43, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.

The Trustee can be reached at:

         Juan J. Roberto Esturo
         Reconquista 336
         Argentina



=============
B E R M U D A
=============


ABILITY INSURANCE: A.M. Best Downgrades FSR to 'B'
--------------------------------------------------
A.M. Best Co. has downgraded the financial strength rating to B
(Fair) from B+ (Good) and issuer credit ratings to "bb" from "bbb-
" of Ability Reinsurance (Bermuda) Ltd. (Hamilton, Bermuda) and
Ability Insurance Company (AIC) (Omaha, NE), collectively referred
to as Ability Re.  All ratings remain under review with negative
implications.

The downgrades reflect AIC's significant statutory losses incurred
year-to-date through September 30, 2012, the ongoing uncertainty
regarding pending litigation and a material decline in the
absolute capitalization of AIC.  The weakness in its operating
results continues to reflect deterioration in its long-term care
insuance block as well as increased litigation costs.

A.M. Best believes that given the magnitude of the losses, Ability
Re has reduced financial flexibility.  The company is currently
exploring strategic solutions, and the ratings will remain under
review as A.M. Best monitors the company's ultimate litigation
risk as well as any changes in its overall strategy.

The ratings of Ability Re were originally placed under review with
negative implications on April 16, 2012.  The under review action
reflected the uncertainty surrounding the ultimate financial
impact on the company following a Montana court jury award of
roughly $34 million in compensatory and punitive damages to an
Ability Re long-term care policyholder.  The litigation is
currently pending and Ability Re is awaiting the outcome.



===========
B R A Z I L
===========


AMPLA ENERGIA: S&P Revises Outlook on 'BB' CCRs to Positive
-----------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook Ampla
Energia e Servi‡os S.A. (AMPLA) to positive from stable. "At the
same time, we affirmed our 'BB' global scale and 'brAA-' national
scale corporate credit ratings on the company," S&P said.

The outlook revision reflects our expectations that AMPLA's
operations will continue to improve and that credit metrics will
remain strong for the rating category, leading to a more robust
liquidity and an upgrade. The ratings on AMPLA reflect its "fair"
business risk profile, "significant" financial risk profile, and
"less than adequate" liquidity.

"The corporate credit rating reflects AMPLA's somewhat weak
operating metrics due to its high level of electricity losses and
past-due receivables and its large capital expenditures, which
pressure free cash-flow generation. The ratings also incorporate
AMPLA's strong credit metrics for its rating category, rising
consumption, and favorable growth prospects in its concession
area," S&P said.


JSL SA: Fitch Upgrades IDR to 'BB'; Outlook Stable
--------------------------------------------------
Fitch Ratings has upgraded JSL S.A. as follows:

  -- Foreign and local currency Issuer Default Rating (IDR) to
     'BB' from 'BB-';
  -- National scale rating to 'A+(bra)' from 'A(bra)';
  -- Unsecured debentures issuances to 'A(bra)' from 'A-(bra)'.

The upgrades reflect JSL's efficiency in expanding its cash flow
from operations during the past few years, despite sluggish
economic growth.  The rating actions also factor in the company's
improved competitive position due to investments.  JSL's ratings
are constrained at 'BB' and 'A+' due to the capital-intensive
nature of its business and its aggressive growth strategy.  The
company's commitment to a strong liquidity position vis-a-vis its
short-term obligations is also a key consideration for the
ratings.

Strong Growth in Business and Cash Flow

JSL's expansion over the past few years was mainly based upon
organic growth, which was the result of adding new services and
clients, and increasing the size of its fleet.  Between 2008 and
the latest 12 months (LTM) ended Sept. 30, 2012, JSL's net
revenue, excluding vehicle sales, increased by 102% to BRL2.8
billion. During the same time period, the company's EBITDA grew to
BRL583 million from BRL209 million.  The company's cash flow from
operations (CFFO) increased to BRL553 million during the LTM from
BRL408 million and BRL290 million during 2011 and 2010,
respectively.

Prominent Market Position and Diversified Portfolio

JSL has a leading position in the Brazilian logistics industry
with a diversified portfolio of services that it provides from
multiple sectors of the economy.  The company's services include:
supply chain management (52% of its net revenue), fleet management
and outsourcing (26%), passenger transportation (13%), and general
cargo transportation (8%).  The company's strong position, coupled
with long-term contracts for most of its revenues, minimizes the
company's exposure to volatile economic conditions.  JSL's
significant operating scale has made it an important purchaser of
light vehicles and trucks, giving it a significant amount of
bargaining power versus other competitors in its industry.

High Capex Leads to Negative Free Cash Flow

During the LTM, reported a negative free cash flow (FCF) of BRL170
million, as a result of BRL710 million of capital expenditures. As
the company continues to invest in growth, free cash flow is
expected to remain negative by about BRL200 million to 250 million
per year in the near future.  During 2011, FCF was negative BRL475
million, while in 2010 it was BRL572 million. JSL has the
flexibility to improve free cash flow by lowing capex in the event
of lower operating cash flow, as most of its capital investments
are geared toward increasing the size of its fleet/equipment.
Excluding capex related to expansion, JSL generated BRL361million
of positive FCF during the LTM, an increase from BRL170 million in
2011 and BRl31million reported in 2010.

Adequate Capital Structure

JSL adequate liquidity position vis-a-vis its short-term debt
obligations are a key credit consideration.  As of Sept. 30, 2012,
JSL reported total debt of BRL2.7 billion, of which BRL549 million
was classified as short-term.  This level of near-term debt
compares with BRL 463 million of cash and marketable securities.
The level of short-term debt coverage, as measured by cash plus
funds from operations (FFO) to short-term debt, is solid at a
ratio of 2.0x. About 55% of JSL's debt is secured.  The company's
debt profile is mainly based on FINAME operations (41%),
debentures (21%), banking credit lines (21%) and leasing (14%).

Leverage to Remain Relatively Unchanged

Including the recent acquisitions of Schio S.A and SIMPAR
Concessionarias Ltda., JSL's leverage, as measured by total
debt/EBITDA was 4.6x as of Sept. 30, 2012, while its net
debt/EBITDA ratio was 3.8x.  Fitch does not expect a material
reduction of leverage in the near term with net leverage expected
to be about 3.5x in 2013.  JSL' leverage relative to its fleet
market value is solid.  The company reports a fleet market value
of approximately BRL2.4 billion, a value which is similar to its
net debt position.  The company's flexibility is limited, however,
as only about 33% of its fleet is not used as security for loans.

Key Rating Drivers

An additional upgrade is unlikely in the near to medium term,
considering JSL's ongoing strategy of expanding its operations
should result in leverage levels of about 3.5x. The ratings could
be pressured by acquisitions, significant reduction in the market
value of its fleet, or a deteriorating macroeconomic environment.
Greater exposure to refinancing risks due to a significant
deterioration in liquidity could also pressure its ratings.



==========================
C A Y M A N  I S L A N D S
==========================


BOULDER FUNDING: Creditors' Proofs of Debt Due Dec. 7
-----------------------------------------------------
The creditors of Boulder Funding Limited are required to file
their proofs of debt by Dec. 7, 2012, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Oct. 14, 2012.

The company's liquidator is:

         Westport Services Ltd.
         c/o Bonnie Willkom
         Telephone: (345) 949 5122
         Facsimile: (345) 949 7920
         PO Box 1111 Grand Cayman KY1-1102
         Cayman Islands


CAPRI OVERSEAS: Creditors' Proofs of Debt Due Dec. 4
----------------------------------------------------
The creditors of Capri Overseas Ltd are required to file their
proofs of debt by Dec. 4, 2012, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on Oct. 16, 2012.

The company's liquidator is:

         UBS Nominees Ltd.
         c/o Stephen R. Nelson
         Telephone: 949-4544
         Facsimile: 949-7073
         Charles Adams Ritchie Duckworth
         Zephyr House, 122 Mary Street
         P.O. Box 709 Grand Cayman KY1-1107
         Cayman Islands


CBRE ASIA: Placed Under Voluntary Wind-Up
-----------------------------------------
On Oct. 17, 2012, the sole member of CBRE Asia Pacific Property
Growth Fund resolved to voluntarily wind up the company's
operations.

Only creditors who were able to file their proofs of debt by
Nov. 27, 2012, will be included in the company's dividend
distribution.

The company's liquidator is:

         Richard Finlay
         c/o Noel Webb
         Telephone: (345) 814 7394
         Facsimile: (345) 945 3902
         P.O. Box 2681 Grand Cayman   KY1-1111
         Cayman Islands


CJ 2002A: Creditors' Proofs of Debt Due Dec. 10
-----------------------------------------------
The creditors of CJ 2002A Limited are required to file their
proofs of debt by Dec. 10, 2012, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on Oct. 17, 2012.

The company's liquidators are:

         Samit Ghosh
         Denise Sevilla
         P.O. Box 1109 Grand Cayman KY1-1102
         Cayman Islands
         Telephone: 949-7755
         Facsimile: 949-7634



=============
E C U A D O R
=============


* ECUADOR: Quito Gets $200MM IDB Loan for Urban Transportation
--------------------------------------------------------------
The Inter-American Development Bank (IDB) disclosed the approval
of a $200 million loan for the construction of a metro system in
the city of Quito, Ecuador, which will improve urban mobility and
address the growing demand for public transportation and for an
integrated city wide public transport system.

The construction of the First Line of the Quito Metro (PLMQ) is
expected to be completed by 2016 and will transport 360,000
passengers per day, which will represent an 11 percent increase.
Within two years PLMQ is expected to shorten by 15 minutes the
travel time required to cross the city.  This means $68 million
saved thanks to lower public service operating costs, as well as
better connectivity, more safety, and greater comfort over of the
current system.  Greenhouse and pollutant emissions are to be cut
by 25 million tons per year, a figure that will increase over
time.  It will also provide improved access for people with
physical limitations, the elderly and families.

The program is structured around the following components: civil
works, facilities, and expropriations; rolling stock and technical
assistance for project execution.

The IDB financing has an amortization period of 25 years, a grace
period of 13.5 year grace period and a variable interest rate
based on LIBOR.



====================
E L  S A L V A D O R
====================


* EL SALVADOR: Fitch Rates $800MM Global Bonds Due 2025 'BB'
------------------------------------------------------------
Fitch Ratings assigns a 'BB' rating to El Salvador's US$800
million global bonds due in 2025.  The ratings are in line with El
Salvador's long-term foreign currency Issuer Default Rating (IDR)
of 'BB', which has a Negative Outlook.  The government is re-
entering international capital markets with the objective of
securing funds for an unlikely early payment of a bond with a put
option due in January 2013, while the rest could finance buybacks
of short-term debt (LETES).

El Salvador's ratings are supported by its macroeconomic stability
underpinned by dollarization, its adequately capitalized financial
system, and solid repayment record.  The government has a good
track record in implementing tax reforms despite the low economic
growth environment.

El Salvador's economic growth prospects are weaker than those of
most peers in light of the country's low competitiveness and
investment levels, and high crime rates.  Government initiatives
to accelerate growth and to improve the business climate have been
slow to materialize.  In Fitch's view, global economic uncertainty
poses additional downside risks to the agency's economic
projections for El Salvador.

Government revenues continue to grow supported by tax reforms and
administrative measures, but the tax burden remains below the
median in the 'BB' category.  Spending-overruns have undermined
consolidation efforts.  The Non-Financial Public Sector's (NFPS)
deficit reached -3.9% of GDP in 2011, and Fitch expects only a
slow consolidation process in the coming years.

El Salvador's debt burden increased further in 2011 and reached
52% of GDP (compared to 39% for the 'BB' median).  Fitch expects
it to remain elevated and above the 'BB' median between 2012 and
2014.  El Salvador's debt profile has deteriorated due to a build
up in short-term debt (LETES), exposing the sovereign to higher
roll-over risks.  Market access remains good, but yields in the
local market have increased lately.

Fitch does not expect to see a political gridlock between 2012 and
2014 related to the passage of the 2013 budget and additional
long-term borrowing.  However, downside risks are present as no
single party has legislative majority and political polarization
remains high ahead of the 2014 presidential elections.

Continued economic underperformance relative to peers, inability
to decisively cut debt burden, and evidence of financing
constraints could undermine creditworthiness.  Ratings could
stabilize if growth performance improves and government debt
burden is reduced.



=============
J A M A I C A
=============


LIME JAMAICA: Appoints Carlo Redwood to Lead Marketing Team
-----------------------------------------------------------
Julian Richardson at Jamaica Observer reports that LIME Jamaica
Limited (formerly Cable & Wireless Jamaica Limited) has appointed
Carlo Redwood as head of marketing at LIME Jamaica.  Mr. Redwood
has left his post as marketing manager at Pepsi Cola to join the
company.

Prior to Pepsi, Mr. Redwood spent more than six years at Red
Stripe, where he served as group marketing manager and national
sales manager, according to Jamaica Observer.

The report notes that LIME Chairman Chris Dehring has led an
aggressive drive to improve the brand's image and distance it from
the old Cable & Wireless Jamaica monopoly.

In January 2012, the company appointed former Red Stripe standout
Grace Silvera as vice-president for marketing and communications
for LIME's 13 regional territories, the report relates.

Strategically, the report notes that LIME asked Ms. Silvera to
take extraordinary responsibility for Jamaica, a temporary
assignment, while the company searched for a permanent head of
marketing for Jamaica.

The report discloses that Ms. Silvera and her team launched
campaigns mainly aimed at grabbing back share in the mobile
market, none bigger than the Talk EZ campaign which accompanied
the company's slashing of rates from $8 a minute to $2.99, two-
thirds less than the price charged by its arch-rival at the time -
but has since been eclipsed.

However, the report relates that the company continues to bleed
despite increased revenues.

LIME reported that its mobile revenue climbed by 21% during the
three months to September 30, when compared to the corresponding
period last year, the report notes.

But the company posted another billion-dollar loss during the
quarter that ended September 30, pushing its accumulated losses
past $35 billion, the report says.

Jamaica Observer adds that the new call tax implemented mid-July
and tougher competition in broadband ate away at the company's
revenue.

                       About LIME Jamaica

Headquartered in Kingston, Jamaica, LIME Jamaica Limited
(formerly Cable & Wireless Jamaica Limited) is a subsidiary of
Cable & Wireless plc.  The company is involved in providing
domestic and international telecommunications services to both
individual and businesses enterprise customers.

                           *     *    *

As reported in the Troubled Company Reporter on Feb. 6, 2012,
the Board of Directors of LIME released the unaudited
consolidated results of the company, Jamaica Digiport
International Limited (101), and other subsidiaries, for the
quarter ended Sept. 30, 2009.  The report related that revenue
for the quarter declined 10% to JM$5,104 million from JMS5,567
million for the same period in 2008.  Jamaica Gleaner noted that
LIME's accumulated deficit has climbed to more than
JM$17 billion.  Concurrently, its equity base has diminished to
JM$2 billion on its December 2011 unaudited balance sheet,
reflecting book value of two cents per share, the report added.



===========
M E X I C O
===========


AXTEL SAB: S&P Affirms 'CCC+' Corporate Credit Rating
-----------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'CCC+' long-term
corporate credit and senior unsecured ratings on Axtel S.A.B de
C.V. The recovery rating of '3' on the notes, indicating the
expectation of a meaningful recovery (50%-70%) in the event of
payment default, remains unchanged. The outlook is negative.

The ratings on Axtel reflect its currently "highly leveraged"
financial risk profile and "vulnerable" business risk profile amid
very competitive operating conditions and dependence on
interconnection through Telefonos de Mexico S.A.B. de C.V. The
ratings also incorporate the company's declining revenues,
negative free operating cash flow, and weak liquidity. The
positive rating factors are Axtel's wide reach within Mexico, its
flexible, advanced network featuring several access technologies,
and largest maturities in 2017 and 2019. S&P assesses the
company's management as "fair."

"According to our criteria, a 'CCC+' rated issuer is currently
vulnerable and dependent upon favorable business, financial, and
economic conditions to meet its financial commitments. Axtel's
financial commitments appear to be unsustainable in the long term,
although it may not face a near-term (within 12 months) credit or
payment crisis. We believe Axtel could meet its 2013 debt
obligations, but we will closely monitor any deviation from our
base case. During the third quarter of 2012, its top-line revenues
continue to suffer from lower international traffic segment
revenues amid pricing pressures from tough competition. The
outlook on prices and volume for this segment is uncertain and
could further erode the company's EBITDA," S&P said.


BANCO AGRICOLA: S&P Affirms 'BB-/B' Issuer Credit Ratings
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' long-term
and 'B' short-term issuer credit ratings (ICR) on Banco Agricola.
The bank's stand-alone credit profile (SACP) remains at 'bbb-'.

The ratings on Banco Agricola reflect S&P's view of its "strong"
(as our criteria define the term) business position, "strong"
capital and earnings, "adequate" risk position, and its "average"
funding and "adequate" liquidity.


BANCO DAVIVIENDA: S&P Affirms 'BB-/B' Issuer Credit Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its long-term 'BB-'
and short-term 'B' issuer credit ratings on El Salvador-based
Banco Davivienda Salvadore¤o S.A. The outlook is stable.

The issuer credit ratings on Banco Davivienda Salvadore¤o reflect
S&P's "adequate" assessments for its business and risk positions,
and capital and earnings. They also reflect S&P's view of its
"average" funding and "adequate" liquidity (as its criteria define
these terms). The bank's stand-alone credit profile (SACP) is
'bb'.


BANCA MONTE: S&P Cuts Counterparty Credit Ratings to 'BB+/B'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long- and short-
term counterparty credit ratings on Italy-based Banca Monte dei
Paschi di Siena SpA (MPS) to 'BB+/B' from 'BBB-/A-3'. "We also
lowered our rating on MPS' Lower Tier II subordinated notes to 'B-
' from 'BB-'," S&P said.

"At the same time, we placed our long-term counterparty credit
rating, as well as our senior unsecured and nondeferrable
subordinated debt rating, on CreditWatch with negative
implications," S&P said.

"We have affirmed our 'CCC+' junior subordinated debt ratings and
our 'CCC' preferred stock ratings," S&P said.

"The downgrade reflects our view that the deteriorating trends at
Banca Monte dei Paschi (MPS) make it unlikely that the bank would
be able to restore its profitability, capital, and funding
position in line with our previous expectations. In this context,
we believe that the difficult economic and operating environment
in the Italian market compounds the challenges that MPS faces in
implementing successfully its business plan and in mitigating the
negative impact on its financial profile of certain risks
resulting from past decisions," S&P said.

MPS' financial profile has been negatively affected by a
combination of lower revenues and higher cost of risk. These
factors have contributed to the bank reporting EUR47.5 million of
additional losses in the third quarter of 2012. Furthermore, the
bank has requested EUR500 million in capital instruments from
the government in addition to what the bank announced in June
2012.

"As a consequence of the deterioration in its financial profile
and the tough economic and operating environment in Italy, MPS
will likely face more difficulties than we previously anticipated
in successfully implementing its business plan. In particular, we
anticipate that the bank's operating profitability might continue
to be squeezed in 2013, notwithstanding its planned cost-cutting
efforts, by what we expect to be continued pressures on revenues
and cost of risk. In addition, it is possible that the disposal of
some noncore assets will take more time than anticipated by the
bank. Given trends at MPS and the environment, we also think that
the risk that the bank might not be able to proceed with the
announced EUR1 billion capital increase in 2014 have increased.
Therefore, in our view, it is unlikely that Standard & Poor's risk
adjusted capital (RAC) ratio before diversification adjustments
for MPS will be comfortably above 5% by the end of 2014 without
support from the government. Furthermore, we consider MPS' quality
of capital to be weakened by the significant amount of deferred
tax assets that the bank carries in its books, accounting for
about 49% of its total adjusted capital as of September 2012. We
have, therefore, changed our assessment on capital and earnings to
'weak' from 'moderate' as our criteria define these terms," S&P
said.

"Furthermore, in our view, MPS' request for an additional EUR500
million in capital instruments indicates that it may continue to
prove challenging for the bank to mitigate the negative financial
impact of some of the risks built up by past strategic decisions
if they were to materialize in the context of the negative
economic environment. We understand the bank is requesting this
amount in order to cushion the potential impact of the possible
restructuring of the funding of some of its large long-dated
government bond portfolio, and of some structured transactions.
With the additional needs, MPS has raised the total amount of
support requested from the government to EUR3.9 billion. We
understand that EUR1.9 billion of the amount requested is intended
to be used to redeem the same amount of Tremonti Bonds, which we
include in our 2011 pro forma RAC ratio and which MPS has been
unable to repay since the government subscribed them in 2009," S&P
said.

"We believe that the capital instruments to which the government
will subscribe could possibly support an improvement of our
assessment of MPS' capital and earnings to 'moderate'. We are
therefore incorporating a one-notch rating uplift over MPS' stand-
alone credit profile (SACP) to reflect short-term capital
support," S&P said.

"The negative CreditWatch listing mainly reflects the current
uncertainties about the extent to which the capital support
provided by the government will likely cushion potential
deterioration of MPS' financial profile. We expect to resolve the
CreditWatch placement once we have analyzed the characteristics of
the capital instruments expected to be subscribed to by the
government and determine the extent to which they meet our
criteria to enable us to give them credit in our capital metrics.
In the event that we consider the new capital instruments to have
minimal equity content, we will assess the extent to which they
may build a cushion that counterbalances some of the potential
risks of further deterioration of MPS' financial profile," S&P
said.


CONTROLADORA MABE: S&P Affirms 'BB+' Issuer Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+' issuer
credit rating on Controladora Mabe S.A. de C.V. (Mabe). The
outlook remains stable. Standard & Poor's also said that it
affirmed its 'BB+' rating on the company's senior unsecured notes
due 2015 and 2019. "Our recovery rating on the notes remains
unchanged at '4'," S&P said.

"The rating actions reflect the gradual improvement in Mabe's
financial and operating conditions due to the recovery of its top-
line performance, which in turn reflects the improved growth rates
in most of its markets; as well as higher pricing, a better
product mix, and the turnaround of its operations in Brazil, which
have recently posted positive margins in the low single digit.
However, we believe that Mabe still faces certain challenges to
continue improving its operating efficiencies and profitability,"
S&P said.

"Our rating on Mabe reflects the company's 'significant' financial
risk profile, based on its low profitability and cash flow
generation, the intense competition from large international
companies, as well as its vulnerability to global economic
downturns as part of a cyclical industry. The rating also reflects
Mabe's 'satisfactory' business risk profile, based on its leading
position in the home appliance market in Mexico (foreign currency
rating BBB/Stable/A-2, local currency rating A-/Stable/A-2) and
other countries in Central America and the Andean region, its
well-known portfolio of brands, its product and geographic
diversification, and its healthy capital structure. Mabe's joint
venture with General Electric Co. (GE; AA+/Stable/A-1+) is a
positive rating factor. We assess the company's management and
governance as 'fair,'" S&P said.

"The stable outlook reflects our expectation that Mabe's financial
performance will continue to gradually improve during the next two
years, supported by low single-digit growth in sales, the
company's efforts to reduce costs, and improved profitability at
its operations in Brazil," said Standard & Poor's credit analyst
Laura Martinez.

"We could lower the rating if global economic conditions worsen,
resulting in less demand for the company's products, or if raw
material prices increase significantly and negatively affect the
company's operating performance. We could also lower the rating if
the company's operating results deteriorate, leading to higher
leverage, with adjusted debt to EBITDA in excess of 4.0x. We could
raise the rating if Mabe's profitability continues to improve,
with EBITDA margin of about 9%, which could imply a further
improvement in the integration of its Brazilian operations; and if
leverage decreases, leading to a total debt to EBITDA of about
2.5x on a sustained basis," S&P said.


MAXCOM TELECOMUNICACIONES: Moody's Affirms 'Caa1' Ratings
---------------------------------------------------------
Moody's Investors Service affirmed Maxcom Telecomunicaciones,
S.A.B. de C.V. (Maxcom)'s Caa1 ratings and changed the outlook to
developing from negative. The change in the outlook was driven by
the company's announcement of a likely change of control.

The date of the last Credit Rating Action was December 16th, 2010.

Ratings Rationale

On May 4th, 2012, Maxcom announced that Ventura Capital Privado,
S.A. de C.V., (Ventura), a Mexican private equity fund, offered to
acquire up to 100% of the company's shares and that shareholders
which represent about 44% of the capital of Maxcom have accepted
the offer, subject to 1) regulatory approvals and other
conditions; 2) Ventura being able to acquire a minimum of 51% of
Maxcom's capital; and 3) a successful exchange of the outstanding
USD 200 million in global notes for new notes to be issued by
Maxcom. The indenture on the existing notes specifies that a
change of control at Maxcom gives bondholders the right to request
acceleration of the payment of the notes.

It is uncertain if the proposed transaction will close
successfully and, if so, the ultimate impact on bondholders at
Maxcom. More so, it is still unclear the type of business plan
that Ventura has for Maxcom or its ability to execute the plan.
Ventura has declared its intention to capitalize Maxcom with at
least USD 22 million.

Maxcom's Caa1 ratings reflect the company's weak sales
performance; small revenue size; and negative free cash flow, as
calculated by Moody's. Maxcom's current leverage (at 3.6 times
adjusted debt to EBITDA for LTM September 30, 2012) and liquidity
position are adequate for its Caa1 rating category. However,
interest coverage as per adjusted EBITDA minus capex to interest
payments is weak at 0.8 times during the last twelve months.

The principal methodology used in rating Maxcom was the Global
Telecommunications Industry Methodology published in December
2010.

Maxcom Telecomunicaciones, S.A.B. de C.V. (Maxcom), headquartered
in Mexico City, Mexico, is a facilities-based telecommunications
provider. It delivers last-mile connectivity to micro, small and
medium-sized businesses and residential customers (social classes
C and D) in Mexico. It provides local and long-distance voice,
data, high speed, dedicated and dial-up Internet access, cable TV,
public telephony and Voice over Internet Protocol telephony, as
well as service bundles. Maxcom launched commercial operations in
May 1999 and is currently offering services in greater
metropolitan Mexico City, Puebla, Queretaro and San Luis Potosi
and, on a selected basis to business subscribers, in several
cities in Mexico. Revenues during the last twelve months ended in
September 30, 2012 amounted to about USD 167 million with a 37%
adjusted EBITDA margin.



===============================
T R I N I D A D  &  T O B A G O
===============================


CL FIN'L: Archaic Laws Made Regulation "Virtually Impossible"
-------------------------------------------------------------
Caribbean360.com reports that former Central Bank governor Ewart
Williams will resume his testimony into the collapse of Colonial
Life Insurance Company (Trinidad) Limited (CLICO), after informing
the Commission of Inquiry that archaic legislation made it
virtually impossible to regulate the Trinidad-based regional
insurance giant.

"The tools available to the Central Bank were blunt instruments.
There was limited scope for targeting particular behavior, as
opposed to taking control over the entire institution or revoking
an institution's license. . . . Depending on the circumstances
intervention carried a serious risk of undermining public
confidence and triggering a run on the institution concerned. I
was conscious of the particular difficulty of regulating
businesses with a high profile and a weighty impact on the
national economy," Mr. Williams said in a 43 page statement to the
sole Commissioner, Sir Anthony Coleman, according to
Caribbean360.com.

The report notes that Mr. Williams, who recently retired from the
financial institution and was among those involved in the early
discussions for a multi-billion dollar bail out of CLICO in 2009,
said that the Central bank had to fight to get the insurance
company to abide with the guidelines set by the bank.

Mr. Williams, the report discloses, said the bank was forced to
use "moral suasion" to get CLICO to follow regulations and laws,
but there was little the regulators could do, as CLICO was a
private company.

Questioned by Queen Counsel Vincent Nelson, the attorney
representing the Ministry of Finance, as to whether the Central
Bank relied too much on moral suasion to get CLICO to abide by
regulations, Mr. Williams replied "in terms of moral suasion, the
success was limited, the report notes.

"CLICO never gave in early on. You had to fight for even the
smallest thing.  I agree that for the period as a whole, the
success was limited, but there were small victories along the way.
Governance is not an area that lends itself very much to rules and
regulations. . . . You can take the horse to the well, but it is
the horse that must want to drink, in the sense that in the final
analysis, we expected that they implement what we agreed to.  Then
we realized that some of those things were not implemented." The
report quoted Mr. Williams as saying.

The report relays that Mr. Williams told the Commission that the
Central Bank had monthly and quarterly meetings with CLICO.

"The point is, after 2009, they were able to have a forensic
examination. After the fact, we got to realize that many of those
committees were not used, or used on a limited basis. . . . It was
clear that on occasions, Mr (Lawrence) Duprey overrode the
recommendations of the investment committee," the report quoted
Mr. Williams as saying.

Mr. Williams, the report notes, identified the US$750 million
acquisition of Jamaican conglomerate Lascelles de Mercado as one
such incident.

Asked by Mr. Nelson if the bank drove home the point clearly
corporate governance was important, Mr. Williams said "the issue
of corporate governance is something that was discussed, but as I
said, particularly in a private company like CLICO, it is very
difficult to force the company along that course when they do not
want to," the report discloses.

Asked whether something should have been done by the regulators
about corporate governance, Mr. Williams said that the "law
specifies no sanctions for corporate governance, the report
relays.

The report says that the former central bank governor said that
legislation allowed regulators limited scope in dealing with
CLICO.

Caribbean360.com adds that Mr. Williams also informed the
Commission that regulators spent more time on CLICO than any other
company in the industry.

                        About CL Financial

CL Financial Group Limited is a privately held conglomerate in
Trinidad and Tobago.  Founded as an insurance company by Cyril
Duprey, Colonial Life Insurance Company was expanded into a
diversified company by his nephew, Lawrence Duprey.  CL Financial
is now one of the largest local conglomerates in the region,
encompassing over 65 companies in 32 countries worldwide with
total assets standing at roughly US$100 billion.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
August 10, 2009, A.M. Best Co. downgraded the financial strength
rating to C (Weak) from B (Fair) and issuer credit rating to
"ccc" from "bb" of Colonial Life Insurance Company (Trinidad)
Limited (CLICO) (Trinidad & Tobago).  The ratings remain under
review with negative implications.  CLICO is an insurance member
company of CL Financial Limited (CL Financial), a diversified
holding company based in Trinidad & Tobago.

According to a TCR-LA report on Feb. 20, 2009, citing Trinidad
and Tobago Express, Tobago President George Maxwell Richards
signed bailout bills for CL Financial, giving the government the
authority to control the company's unit, Colonial Life Insurance
Company, and giving the central bank extensive powers to treat
with CL Financial's collapse and the consequent systemic crisis.


                          ***********


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 * * *