/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/121210.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, December 10, 2012, Vol. 13, No. 245 Headlines A N T I G U A & B A R B U D A LIAT: Reveals Plan to Reverse EC$43-Million Loss Last Year A R G E N T I N A * ARGENTINA: Moody's Says Court Ruling May Impact Restructurings B R A Z I L COMPANHIA ENERGETICA: S&P Affirms 'BB' ICR on Good Credit Metrics GOL LINHAS: Renegotiating Debt With Bradesco, Banco do Brasil MRS LOGISTICA: S&P Affirms 'BB+' Corporate Credit Rating C A Y M A N I S L A N D S CRIMSON: Creditors' Proofs of Debt Due Dec. 4 EMU PARK: Placed Under Voluntary Wind-Up FIVE OCEANS: Creditors' Proofs of Debt Due Dec. 5 GRYPHON FIDELITY: Commences Liquidation Proceedings GULF TURK: Creditors' Proofs of Debt Due Dec. 7 HIGHBRIDGE ASIA: Creditors' Proofs of Debt Due Dec. 5 HIGHBRIDGE ASIA FUND: Creditors' Proofs of Debt Due Dec. 5 JADE II: Commences Liquidation Proceedings MUSICAL HARMONY: Creditors' Proofs of Debt Due Dec. 17 NEWBURY PLACE: Creditors' Proofs of Debt Due Dec. 5 WEXFORD GLOBAL: Creditors' Proofs of Debt Due Dec. 4 J A M A I C A CITIBANK: Jamaica Unit Not Affected by Staff Cut M E X I C O BANCO INTERACCIONES: Moody's Reviews 'B1(hyb)' Sub. Debt Rating BANCO MERCANTIL: Moody's Reviews Ba1 Jr. Subordinated Debt Rating GRUPO KUO: S&P Keeps 'BB' Rating on $325MM Unsecured Notes MAXCOM SAB: S&P Puts 'CCC+' CCR on Watch Neg on Buyout Offer TELEFONICA CELULAR: Moody's Assigns '(P)B1' Corp. Family Rating * NAUCALPAN MUNICIPALITY: Moody's Cuts Issuer Ratings to 'B3.mx' P U E R T O R I C O CREDI INTERNATIONAL: Case Summary & 8 Unsecured Creditors X X X X X X X X * BOND PRICING: For the Week Dec. 3 to Dec. 7, 2012 - - - - - =============================== A N T I G U A & B A R B U D A =============================== LIAT: Reveals Plan to Reverse EC$43-Million Loss Last Year ---------------------------------------------------------- Jamaica Gleaner reports that Leeward Islands Air Transport, known as LIAT, unveiled a new business plan it said would help reverse an EC$43 million loss last year while projecting a 2% profit in 2013. Recently appointed Chief Executive Officer Ian Brunton told a regional news conference that the airline is expected to record EC$23 million in losses at the end of this year, according to Jamaica Gleaner. "The projections show strong revenues and significant bottomline improvement. LIAT is projected to reverse its current losses and record a profit of EC$7 million in 2013 and by 2017, profits in excess of EC$40 million are projected," the report quoted Mr. Brunton as saying. He noted that since 2009, the airline has had to deal with high fuel costs and lower passenger traffic that have seriously affected its finances. In 2010, the report recalls that LIAT, whose principal shareholders are the governments of St Vincent and the Grenadines, Antigua and Barbuda and Barbados, recorded losses of EC$20.2 million, which increased to EC$43 million in 2011 "largely driven by higher fuel costs combined with lower passenger volumes." Jamaiaca Gleaner notes that Mr. Brunton told reporters that the overall costs have been reduced by 10% since 2011 despite the higher fuel costs, adding that "the decrease year over year was mainly attributed to a reduction in both headcount and fleet size." The report relates that Mr. Brunton said the major cause of losses for the regional airline is also the high cost base, mainly driven by very high aircraft maintenance costs as well as by significantly high employee costs. Jamaica Gleaner notes that Mr. Brunton said that while LIAT's market can be described "as relatively wide", they are also "very thin since many of the islands have a population that is less than 100,000 persons. Mr. Brunton, the report relays, said that over the last few years, LIAT has seen a gradual reduction in competition on most of its markets, predicting that by March 2013, American Eagle, a significant competitor, "will finally pull out." Mr. Brunton said the new business plan "puts LIAT in a position to take the opportunities presented by these gaps in the market and increase its revenue base in a cost-effective manner," the report notes. Addressing the high cost of airfare in the region, Mr. Brunton defended the position of the regional airline, noting that taxes account for nearly 50% of the cost of regional fares, the report adds. As reported in the Troubled Company Reporter-Latin America on Jan. 3, 2012, Antigua Caribarena related that former Antigua Aviation Minister Robin Yearwood wants to see a merger between Leeward Islands Air Transport (LIAT) and the Trinidad and Tobago- owned Caribbean Airlines Limited, as he believes this is the only way the Antigua-based regional carrier can survive. Mr. Yearwood's call came against the background of media reports out of Port of Spain that suggested CAL's management may be eyeing expansion into the OECS territories, according to Antigua Caribarena. About LIAT Headquartered in V. C. Bird International Airport in Saint George Parish, Antigua, Leeward Islands Air Transport, known as LIAT, operates high-frequency interisland scheduled services serving 22 destinations in the Caribbean. The airline's main base is VC Bird International Airport, Antigua and Barbuda, with bases at Grantley Adams International Airport, Barbados and Piarco International Airport, Trinidad and Tobago. ================= A R G E N T I N A ================= * ARGENTINA: Moody's Says Court Ruling May Impact Restructurings ---------------------------------------------------------------- The recent US Appeals Court ruling upholding the right of holdout creditors to be paid in full on Argentina's sovereign debt may well have a limited impact on future sovereign debt restructurings, says Moody's Investors Service in a new report. In NML Capital Ltd. vs. Republic of Argentina, the court upheld the right of holdout creditors of a restructuring of Argentinean bonds to be paid in full, based on the pari passu clause included in bond contracts. "In principal, the ruling can have significant implications for the successful completion of future sovereign bond restructurings, as it can diminish creditor incentives to participate in debt restructurings and can also increase the threat of litigation," says Moody's Group Credit Officer for Sovereign Risk Elena Duggar, lead author of "US Court Ruling on Argentina's Debt Could Have Limited Implications for Sovereign Debt Restructurings". "However, we find that in practice implications could prove limited in many situations." First, not all sovereign bond contracts have the same formulation of the pari passu clause as do the Argentinean bonds, says Moody's. In fact, the formulation found in the majority of bonds issued over the last two decades poses a lower risk of holdout litigation. Second, the vast majority of foreign-law sovereign bond contracts contain Collective Action Clauses (CACs), which set a lower threshold of bondholder approval for the completion of a successful debt exchange. Moreover, as in the case of Greece earlier this year, CACs can be retroactively inserted in domestic law bonds by an act of legislation. Third, it is also possible in future sovereign bond restructurings to legally subordinate holdout bonds, for example by using exit consents. The current case is not the first time that a court has enforced a pari passu clause in a sovereign debt instrument, says Moody's. In 2000, US and Brussels Courts set a precedent in their ruling on Elliott vs. Peru, which granted the hedge fund Elliott Associates an injunction against Peru, prohibiting it from paying foreign creditors unless pro rata payments were made to all creditors who ranked pari passu. Despite the furor the injunction created at the time, sovereign holdout litigation has not been a major impediment to debt restructuring over the last decade, says Moody's. =========== B R A Z I L =========== COMPANHIA ENERGETICA: S&P Affirms 'BB' ICR on Good Credit Metrics ----------------------------------------------------------------- Standard & Poor's Rating Services affirmed its 'BB' issuer credit ratings on Brazil-based electric utility holding company Companhia Energetica de Minas Gerais S.A. (Cemig) and its operational subsidiaries Cemig Distribuicao S.A. (Cemig D) and Cemig Geracao e Transmissao S.A. (Cemig GT). The outlook remains stable. The stand-alone credit profile (SACP) of these companies is 'bb'. The ratings reflect the group's "fair" business risk profile and "significant" financial risk profile. Cemig's diversified portfolio of assets in the electricity generation, transmission, and distribution businesses also support the ratings. "In accordance with our criteria for government-related entities, we believe that there is a 'moderately high' likelihood that the Brazilian state of Minas Gerais (foreign and local currency ratings BBB-/Stable/--), which controls 51% of the company, will provide timely and sufficient extraordinary support for Cemig and its subsidiaries in the event of financial distress. Therefore, we do not incorporate any rating support from the controlling shareholder," S&P said. "The stable outlook reflects our view that Cemig's credit metrics and liquidity will remain adequate, even though the company's business profile is constrained by the uncertainties related to the extension of concession agreements," said Standard & Poor's credit analyst Paula Martins. "We could raise the ratings if Cemig's business risk profile improves with reduction of these uncertainties and if the company is able to improve its credit metrics to adjusted total debt to EBITDA of 2.5x and FFO to adjusted total debt of more than 35%. We could lower the ratings if Cemig depletes its liquidity because of an aggressive investment plan combined with high dividend payments, leading to adjusted total debt to EBITDA that consistently exceed 4.0x and FFO to adjusted total debt of less than 20%," S&P said. GOL LINHAS: Renegotiating Debt With Bradesco, Banco do Brasil ------------------------------------------------------------- Christiana Sciaudone at Bloomberg News reports that Gol Linhas Aereas Inteligentes SA, the Brazilian airline cutting flights and jobs to end losses, is seeking to renegotiate terms of BRL1.1 billion in debentures held by Banco Bradesco SA (BBDC4) and Banco do Brasil SA. The terms on the 2015 debentures must be reworked by the end of the year or the carrier will be out of compliance with covenants and have to pay the debt immediately, Chief Financial Officer Edmar Prado Lopes Neto said, according to Bloomberg News reports. The report relates that Mr. Neto said that a weaker real and rising fuel costs are hurting results. Bloomberg News discloses that Gol Linhas is working to return to profit after adjusted losses in five of the past six quarters as Brazil's economic growth and domestic travel demand slow. The country's second biggest airline is firing workers, scaling back its schedule and returning aging jets, Bloomberg News relays. "Operations are weak despite cost reductions," Lopes Neto told Bloomberg News in a telephone interview from Sao Paulo. About Gol Linhas Sao Paulo, Brazil-based Gol Linhas Aereas Inteligentes S.A. is a low-cost, low-fare airline in the world providing service on routes connecting all of Brazil's cities and from Brazil to cities in South America and select touristic destinations in the Caribbean. * * * As reported in the Troubled Company Reporter - Latin America on April 9, 2012, Standard & Poor's Ratings Services lowered its 'BB-' global-scale corporate credit rating on Sao Paulo-based Gol Linhas Aereas Inteligentes S.A. (Gol) to 'B+'. S&P also lowered the 'brA' Brazil national scale rating to 'brBBB'. The outlook is negative. MRS LOGISTICA: S&P Affirms 'BB+' Corporate Credit Rating -------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+' global scale and 'brAA+' national scale corporate credit ratings on MRS Logistica S.A. "We are also assigning a 'brAA+' rating on the company's fourth debentures issuance, and affirming the 'brAA+' issue rating on its fifth debentures issuance. The outlook is stable," S&P said. "We expect MRS's performance to be stable in 2013 despite lower iron ore prices for iron ore producers-the company's main clients- since mid-2012. We expect that transported volumes will continue to grow, both additional iron ore cargo from existing and new clients and expansion in general cargo. MRS has also managed cost pressures well, and we expect continuing operating efficiency gains to support margins," S&P said. ========================== C A Y M A N I S L A N D S ========================== CRIMSON: Creditors' Proofs of Debt Due Dec. 4 --------------------------------------------- The creditors of Crimson 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. 8, 2012. The company's liquidator is: Brendan Lowell Bibro Apt 2, 333 Lehigh Avenue Pittsburg PA 15232 USA e-mail: b_bibro@hotmail.com EMU PARK: Placed Under Voluntary Wind-Up ---------------------------------------- On Oct. 16, 2012, the sole shareholder of Emu Park Fund (CR-149097) 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: Simon Atkinson Telephone: 81-03-5114-1296 Facsimile: 81-03-5114-1150 c/o Rockhampton Management Ark Mori Building, 22nd Floor PO Box 578 1-12-32 Akasaka Minato-Ku Tokyo 107-6022 Japan FIVE OCEANS: Creditors' Proofs of Debt Due Dec. 5 ------------------------------------------------- The creditors of Five Oceans (Global Master) Fund are required to file their proofs of debt by Dec. 5, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 16, 2012. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 GRYPHON FIDELITY: Commences Liquidation Proceedings --------------------------------------------------- On Oct. 7, 2012, the shareholders of Gryphon Fidelity Insurance Company (SPC) Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Nov. 26, 2012, will be included in the company's dividend distribution. The company's liquidator is: Nicholas Leighton c/o Atlas Insurance Management (Cayman) Limited 198 North Church Street Grand Cayman Cayman Islands GULF TURK: Creditors' Proofs of Debt Due Dec. 7 ----------------------------------------------- The creditors of Gulf Turk Fashion 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. 15, 2012. The company's liquidator is: James Tanner c/o Bonnie Willkom Telephone: (345) 949 5122 Facsimile: (345) 949 7920 PO Box 1111 Grand Cayman KY1-1102 Cayman Islands HIGHBRIDGE ASIA: Creditors' Proofs of Debt Due Dec. 5 ----------------------------------------------------- The creditors of Highbridge Asia Opportunities Fund, Ltd. are required to file their proofs of debt by Dec. 5, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 19, 2012. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited 87 Mary Street, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 HIGHBRIDGE ASIA FUND: Creditors' Proofs of Debt Due Dec. 5 ---------------------------------------------------------- The creditors of Highbridge Asia Opportunities Institutional Fund, Ltd are required to file their proofs of debt by Dec. 5, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 19, 2012. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited 87 Mary Street, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 JADE II: Commences Liquidation Proceedings ------------------------------------------ On Oct. 16, 2012, the members of Jade II, Inc. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Nov. 26, 2012, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands MUSICAL HARMONY: Creditors' Proofs of Debt Due Dec. 17 ------------------------------------------------------ The creditors of Musical Harmony Investment Limited are required to file their proofs of debt by Dec. 17, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 16, 2012. The company's liquidator is: Lion International Management Limited Craigmuir Chambers P.O. Box 71 Road Town, Tortola British Virgin Islands c/o Mr. Philip C Pedro HSBC International Trustee Limited Compass Point Bermudiana Road, Hamilton HM 11 Bermuda NEWBURY PLACE: Creditors' Proofs of Debt Due Dec. 5 --------------------------------------------------- The creditors of Newbury Place Offshore, Inc are required to file their proofs of debt by Dec. 5, 2012, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 8, 2012. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited 87 Mary Street, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 WEXFORD GLOBAL: Creditors' Proofs of Debt Due Dec. 4 ---------------------------------------------------- The creditors of Wexford Global Strategies Trading Limited 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. 18, 2012. The company's liquidator is: Robert Holtz 411 West Putnam Avenue, Suite 125 Connecticut CT 06830 U.S.A. ============= J A M A I C A ============= CITIBANK: Jamaica Unit Not Affected by Staff Cut ------------------------------------------------ RJR News reports that country manager for CitiBank Jamaica, Peter Moses, said staff will not be affected by the decision of its parent company to cut more than 10,000 jobs worldwide. Mr. Moses told the Financial Report that Jamaica is not included in the regions where the cuts will take place, according to RJR News. The report relates that Mr. Moses disclosed that the bank currently has 73 employees in Jamaica. Citigroup said that it is cutting 11,000 jobs in an efficiency drive, with most of the posts being lost in its consumer banking division, RJR News notes. The report relates that the bank said the move, which will see its head count shrink by 4%, would cost it about US$1 billion dollars in pre-tax charges. Citigroup said the changes would leave it US$900 million better off in 2013 and a further US$1.1 billion dollars the following year, the report adds. =========== M E X I C O =========== BANCO INTERACCIONES: Moody's Reviews 'B1(hyb)' Sub. Debt Rating --------------------------------------------------------------- Moody's de Mexico has placed on review for downgrade the ratings assigned to subordinated debt issued by Banco Mercantil del Norte, S.A. (Banorte) and Banco Interacciones, S.A. (Interacciones) that currently have systemic support incorporated in their ratings. All other ratings and outlooks for these issuers remain unaffected by these rating actions. The rating actions reflect Moody's opinion that the global trend towards imposing losses on junior creditors in the context of future bank resolutions may reduce the predictability of such support being provided to holders of subordinated debt, as junior obligations are expected to absorb losses on behalf of senior creditors and depositors. This view is discussed in the special comment "Supported Bank Debt Ratings at Risk of Downgrade due to New Approaches to Bank Resolution," published in February 2011. LIST OF AFFECTED RATINGS The following subordinated debt ratings were placed on review: Banco Mercantil del Norte, S.A. Long-term global local currency subordinated debt rating of Baa1 Long-term global local currency subordinated debt program rating of (P) Baa1 Long-term global local currency junior subordinated debt rating of Baa2 (hyb) Long-term global local currency junior subordinated debt program rating of (P) Baa2 Long-term Mexican National Scale subordinated debt rating of Aaa.mx Long-term Mexican National Scale subordinated debt program rating of Aaa.mx Long-term Mexican National Scale junior subordinated debt rating of Aa1.mx (hyb) Banco Interacciones, S.A. Long term global local currency subordinated debt rating of B1 (hyb) Long-term global local currency subordinated debt program rating of (P) B1 Long term Mexican National Scale subordinated debt rating of Baa1.mx (hyb) Long term Mexican National Scale subordinated debt program rating of Baa1.mx Ratings Rationale The review for downgrade on the Mexican banks' subordinated debt ratings reflects Moody's revised approach to notching the ratings of these instruments from a bank's standalone credit assessment instead of from its supported deposit rating. Moody's currently incorporates one or two notches of systemic support in the subordinated and junior subordinated debt ratings of the listed Mexican banks. During the rating review, Moody's will consider removing systemic support from these debt instruments, based on an assessment of the ability and the willingness of local regulators to impose losses on holders of subordinated debt outside a liquidation process. Upon the conclusion of the review and in line with "Moody's Guidelines for Rating Bank Hybrid Securities and Subordinated Debt", published in November 2009, Moody's expects to position the ratings of subordinated debt one notch below the Adjusted Baseline Credit Assessment (Adjusted BCA) , which reflects a bank's stand- alone financial strength including parental and cooperative support. Junior subordinated debt ratings may be positioned two notches below the Adjusted BCA while deeply subordinated junior debt may be positioned three notches below the adjusted BCA. Last Rating Actions The last rating action on Banco Mercantil del Norte, S.A. was on September 7, 2012, when Moody's affirmed Banorte's ratings and assigned first-time ratings to Ixe Banco and CB Banorte-Ixe. The last rating action on Banco Interacciones, S.A. was on August 31, 2012, when Moody's assigned Baa1.mx to Interacciones's proposed subordinated notes. Banorte is headquartered in Mexico City. As of September 30, 2012, the bank reported Mx$641.8 billion in assets. Interacciones is headquartered in Mexico City. As of September 30, 2012, the bank reported Mx$93.5 billion in assets The period of time covered in the financial information used to determine Banorte's rating is between 31 December 2006 and 30 September 2012 (source: Moody's, Issuer's financial statements, CNBV and Banxico). The period of time covered in the financial information used to determine Interacciones's rating is between December 31, 2006 and September 30, 2012 (source: Moody's, Issuer's financial statements, CNBV and Banxico). The sources and items of information used to determine Banorte's rating include 2011 and 2012 interim financial statements (source: Grupo Financiero Banorte); year-end 2011 audited financial statements (source: Grupo Financiero Banorte, audited by Deloitte Touche Tohmatsu Limited); financial statements and information on market position (source: CNBV); regulatory capital information (source: Banxico); debt offering memorandum (source: Grupo Financiero Banorte). The sources and items of information used to determine Interacciones's rating include 2011 and 2012 interim financial statements (source: Banco Interacciones, S.A.); year-end 2011 audited financial statements (source: Banco Interacciones, S.A., audited by Salles Sainz Grant Thornton); financial statements and information on market position (source: CNBV); regulatory capital information (source: Banco de Mexico); debt offering memorandum (Banco Interacciones, S.A.). BANCO MERCANTIL: Moody's Reviews Ba1 Jr. Subordinated Debt Rating ----------------------------------------------------------------- Moody's Investors Service has placed on review for downgrade the ratings assigned to subordinated debt issued by Banco Mercantil del Norte, S.A. (Banorte) that currently have systemic support incorporated in their ratings. All other ratings and outlooks for this issuer remain unaffected by these rating actions. The rating action reflects Moody's opinion that the global trend towards imposing losses on junior creditors in the context of future bank resolutions may reduce the predictability of such support being provided to holders of subordinated debt, as junior obligations are expected to absorb losses on behalf of senior creditors and depositors. This view is discussed in the special comment "Supported Bank Debt Ratings at Risk of Downgrade due to New Approaches to Bank Resolution," published in February 2011. LIST OF AFFECTED RATINGS The following subordinated debt ratings were placed on review: Banco Mercantil del Norte, S.A. Long-term foreign currency subordinated debt rating of Baa1 (hyb) Long-term foreign currency junior subordinated debt rating of Ba1(hyb) Ratings Rationale The review for downgrade on Banorte's subordinated debt ratings reflects Moody's revised approach to notching the ratings of these instruments from a bank's standalone credit assessment instead of from its supported deposit rating. Moody's currently incorporates one or two notches of systemic support in the subordinated and junior subordinated debt ratings of Banorte. During the rating review, Moody's will consider removing systemic support from these debt instruments, based on an assessment of the ability and the willingness of local regulators to impose losses on holders of subordinated debt outside a liquidation process. Upon the conclusion of the review and in line with "Moody's Guidelines for Rating Bank Hybrid Securities and Subordinated Debt", published in November 2009, Moody's expects to position the ratings of subordinated debt one notch below the Adjusted Baseline Credit Assessment (Adjusted BCA) , which reflects a bank's stand- alone financial strength including parental and cooperative support. Junior subordinated debt ratings may be positioned two notches below the Adjusted BCA while deeply subordinated junior debt may be positioned three notches below the adjusted BCA. The principal methodology used in rating these banks' ratings was Moody's Consolidated Global Bank Rating Methodology published in June 2012. Last Rating Action The last rating action on Banco Mercantil del Norte, S.A. was on September 7, 2012, when Moody's affirmed Banorte's ratings and assigned first-time ratings to Ixe Banco and CB Banorte-Ixe. Banorte is headquartered in Mexico City. As of September 30, 2012, the bank reported Mx$641.8 billion in assets. GRUPO KUO: S&P Keeps 'BB' Rating on $325MM Unsecured Notes ---------------------------------------------------------- Standard & Poor's Ratings Services said its 'BB' issue rating on Mexico-based conglomerate Grupo KUO S.A.B. de C.V. (KUO; BB/Stable/--) remains unchanged following the $75 million add-on to its existing $250 million 10-year senior unsecured notes bearing an annual fixed rate of 6.25%. "We don't expect the add-on to increase KUO's gross consolidated debt because it will use most of the proceeds from the issuance to refinance existing debt, including its senior unsecured notes due 2017, short term debt and other long term debt due 2016. In addition, the add-on will help extend the debt's average debt term to about 8 years from about five, and reduce interest expenses with lower-interest debt," S&P said. RATINGS LIST Grupo KUO S.A.B. de C.V. Corporate credit rating BB/Stable/-- Senior unsecured notes BB MAXCOM SAB: S&P Puts 'CCC+' CCR on Watch Neg on Buyout Offer ------------------------------------------------------------ Standard & Poor's Ratings Services placed its 'CCC+' corporate credit and debt ratings on Maxcom S.A.B. de C.V. on CreditWatch with negative implications. "The CreditWatch placement follows Maxcom's announcement of private equity firm's, Ventura's, intentions to buy all of Maxcom's outstanding Certificados de Participacion Ordinaria for MXN2.90 each (about $54.2 million in total). Maxcom's board and investors, representing 44% of outstanding stock, have approved the deal. Ventura also plans to increase Maxcom's capital by $22 million. The closing of the transaction will be subject to regulatory approvals, the sale of more than 50% of the stock, and the successful exchange of Maxcom's existing $200 million notes due 2014 for new bonds the company plans to issue," S&P said. "We are uncertain about the new terms and conditions of these new bonds. We are also uncertain on the business strategy Ventura will have for Maxcom if the transaction occurs," S&P said. "We will resolve the CreditWatch listing once the transaction is closed. Potential outcomes of the CreditWatch could be an affirmation or a downgrade. The outcome will primarily depend on our view if the exchange of the $200 million notes is distressed or not. We will analyze the implications of the new ownership, management, and Ventura's business strategy on Maxcom's business profile. However, we believe this assessment will take a longer period of time. In our opinion, while the new capital at this early stage will improve the company's liquidity, the amount is still small compared with necessary investments Maxcom must make to compete with its larger peers," S&P said. TELEFONICA CELULAR: Moody's Assigns '(P)B1' Corp. Family Rating --------------------------------------------------------------- Moody's Investors Service assigned a (P)B1 corporate family rating to Telefonica Celular del Paraguay S.A. (Telecel) and a (P)B1 rating to its proposed senior unsecured global notes for an amount up to USD300 million. The ratings outlook is stable. Proceeds from the notes will be used to repay debt and for capex. The ratings assume that final terms and conditions on the notes will not materially change from those reviewed by Moody's. The ratings on the notes are provisional pending completion of the issuance and debt repayment. This is the first time Moody's has rated Telecel. Ratings Rationale The (P)B1 ratings on Telecel are constrained by Paraguay's B1 sovereign rating. The rating on Telecel and its proposed notes is supported by the company's status as #1 mobile operator in the country, with an estimated 56% market share; track record of strong and resilient growth despite changes in government; and solid credit profile driven by low adjusted leverage of 0.8x and high adjusted EBITDA margin during the twelve months ending September 30, 2012. The ratings are also constrained by the company's modest revenue size (USD617 million in LTM) as compared to global peers; a low amount of free cash flow generation after capex and dividends; and the competitive nature of the Paraguayan telecom market, which places negative pressure on revenue growth and margins. Moody's uses the Global Telecommunications Industry Rating Methodology to assist in the assessment of Telecel's credit quality. The methodology grid suggested rating outcome for Telecel is several levels higher than the assigned ratings. The notching difference is explained by the aforementioned factors, and foreign currency convertibility and transferability risks, which are imbedded in the B1 sovereign rating of Paraguay. Although Moody's recognizes that Telecel has historically been able to convert Guaranies into USD and transfer the currency outside Paraguay without major difficulty, it cannot be certain that this will continue to be the case in the future. The stable rating outlook reflects Moody's expectation that Telecel will grow at high single digit rates in the next 3 years despite the competitive mobile market given its solid market share and long operating track record; the stable outlook also assumes that the company will be able to sustain current operating and credit metrics. Telecel was the first provider of mobile communications services in Paraguay, starting operations in August of 1992. Leading market position plus a nice share of postpaid subscribers of total (17%) has allowed the company to report high operating margins well above 50% in the last several years. Today, with about 3.8 million mobile subscribers, it estimates its market share at 56%, placing it in the first position in Paraguay, before Personal (owned by Telecom Italia Mobile, a subsidiary of Telecom Italia, Baa2 negative), which Telecel estimates has a market share of 29%. Other smaller competitors include America Movil (A2 stable)'s Claro and Vox, owned by the Paraguayan government; both have about 7% market share each, as estimated by Telecel. The company has recently acquired Cablevision Paraguay, #1 cable company in the country with a 80% market share. Solid EBITDA margin and strong operating cash flow generation has allowed Telecel to sustain adjusted debt/EBITDA at below 1 time in the last several years. Pro forma for the proposed notes, the company's leverage should reach 1.1x by mid 2013. Although Telecel has no committed target leverage ratio and its proposed notes will have a financial covenant of maximum 4x debt/EBITDA, Moody's expects the company's leverage to remain at current levels for the foreseeable future given limited opportunities for large debt-funded acquisitions and legal restrictions on Telecel's ability to pay dividends much higher than amounts paid in the last couple of years. In addition, it is positive that Millicom's target leverage ratio is 1x debt/EBITDA on a consolidated basis. Telecel's Interest coverage metrics as measured by EBITDA minus capex to interest expenses should remain also strong well above 7x in the next several years. Telecel's liquidity is strong. Moody's foresees that, during the next 5 quarters ending in December 31, 2013, the company should be able to use cash on hand of about USD87 million as of September 2012, high amounts of projected EBITDA and the net proceeds from the new senior notes (about USD137 million, after payment of bridge loan and transactional fees) to fund capex and also fulfill cash obligations such as interest payments, working capital, taxes and dividends; Telecel pays out most of its generated cash in dividends, after investing in capex. A positive action on Paraguay's sovereign ratings could trigger a positive action on Telecel's ratings. In addition, a ratings upgrade could be triggered by a sizable increase in the company's hard-currency revenue from sources outside Paraguay. However, an upgrade would require that the company maintains strong liquidity and a comfortable debt maturity profile. A downgrade would be considered if expected revenue growth is not achieved or if operating margins decline further than anticipated as a consequence competitors' irrational business behavior. A negative rating action could also be triggered by a debt leverage that reaches 2 times for a prolonged period of time without a clear path to subsequent de-leveraging. The principal methodology used in rating Telecel was the Global Telecommunications Industry Methodology published in December 2010. With 3.8 million subscribers as of September 30, 2012, Telecel is the largest mobile telecom operator in Paraguay with an estimated 56% market share. It is indirectly 100% owned by Millicom International Cellular S.A. (Ba1 stable). During the last 12 months ended in September 30, 2012, Telecel's revenues amounted to USD617 million. * NAUCALPAN MUNICIPALITY: Moody's Cuts Issuer Ratings to 'B3.mx' ---------------------------------------------------------------- Moody's de Mexico downgraded the Municipality of Naucalpan's issuer ratings to B3.mx (Mexico National Scale) and to B3 (Global Scale, local currency) from Baa1.mx and Ba3, respectively. Additionaly, the issuer ratings have been placed under review for possible downgrade. At the same time, Moody's downgraded the debt ratings of a MXN486 million enhanced loan, contracted with Banorte to Baa3.mx (Mexican National Scale) and B1 (Global Scale, local currency) from Aa3.mx and Ba1, respectively. Ratings Rationale The downgrade to B3/B3.mx from Ba3/Baa1.mx reflects information that Naucalpan may have missed payments on its short term lines of credit with Banco Interacciones due to acute liquidity pressures. Moody's understands that Banco Interacciones has initiated legal procedures against the municipality. In addition, the municipality is exposed to refinancing risks stemming from the obligation to pay all outstanding short-term debt before the end of the current administration on 31st of December of 2012. Moreover, Banorte the lender that holds all of Naucalpan's long-term debt has now the right to early amortize the loan, therefore leading to additional risks. These events add to Naucalpan's structural pressures signaled on the last rating action of 26 September 2012 (for more details, see the rating action at www.moodys.com). At the end of July of 2012, total short-term debt amounted MXN 131.6 million equivalent to 6.3% of 2011 operating revenues. Naucalpan's liquidity position is very tight, net working capital to total expenditures was equivalent to -- 29.8% at the end of 2011 and for July 2012, cash and cash equivalents amounted MXN 111 million. While the municipality has the authorization to contract MXN 80 million on long term debt, Moody's has not received information of Naucalpan contracting this amount. Moody's notes that the approval from Congress expires by the end of the current administration on December 31st. The ratings review will focus on Naucalpan's capacity and willingness to respect all upcoming debt service payments on all other debt obligations in a full and timely manner. Moody's expects to conclude the review within three months. Over this period, Moody's will closely monitor Naucalpan's progress in repaying all of its short-term debt and also the next administration's willingness to pay all outstanding debt obligations. Expected loss rates on the defaulted short-term lines of credit with Interacciones, in conjunction the maintenance of full and timely debt service payments on all other debt obligations, will be the key drivers for future rating actions. The ratings downgrade of the MXN 486 million enhanced loan reflects the downgrade of Naucalpan's issuer ratings, as well as, the risks associated with right that has the lender to early amortize the loan. While the loan enhancements continue to provide a two notch uplift from the global scale issuer ratings, per Moody's methodology on rating enhanced loans, the loan ratings are directly linked to the credit quality of the issuer, which ensures that underlying contract enforcement risks, economic risks and credit culture risks (for which the issuer rating acts as a proxy) are embedded in the enhanced loans ratings. What Could Change The Ratings UP/DOWN While currently Moody's does not expect upward pressure on the ratings, if Naucalpan a) repays in full, including all corresponding penalties and accrued amounts, the short-term line of credit currently in default, b) continues to make full and timely debt service payments on all other debt obligations and c) successfully pays all outstanding short-term debt and/or refinances it with longer term maturities, Moody's may maintain the current ratings and the outlook could be revised back to stable. Under a scenario where either Naucalapan a) does not repay in full, including all corresponding penalties and accrued amounts, the short-term line of credit currently in default or b) fails to make full and timely debt service payments on all other debt obligations, Moody's would likely downgrade the municipality, depending on expected recovery rates. Given the links between the loan and the credit quality of the obligor, an upgrade of the Municipality of Naucalpan's issuer ratings rating would likely result in an upgrade of the ratings on the MXN 486 million enhanced loan. Conversely, a downgrade of Naucalpan's issuer ratings could also exert downward pressure on the debt ratings of the loan. In addition, the ratings could face downward pressure if debt service coverage levels fall materially below Moody's expectations. Credit ratings incorporate Moody's macroeconomic outlook and its implications on key variables that may include but not be limited to interest rates, inflation, economic growth, unemployment, performance of counterparties, credit availability, sector level changes in competitive conditions, supply/demand and margins, and issuer specific changes in capital structure, competitive positioning, governance, risk profile, and liquidity. Unexpected changes in such variables may lead to changes in the credit rating level, potentially by several notches. Further information on the sensitivity of the rating to specific assumptions is included in this disclosure. The methodologies used in this rating were "Regional and Local Governments Outside the US," published in May 2008, "The Application of Joint Default Analysis to Regional and Local Governments," published in December 2008, "Enhanced Municipal and State Loans in Mexico" published in January 2011 and "Mapping Moody's National Scale Ratings to Global Scale Ratings" published in October 2012. The date of the last Credit Rating Action was September 26, 2012. ===================== P U E R T O R I C O ===================== CREDI INTERNATIONAL: Case Summary & 8 Unsecured Creditors --------------------------------------------------------- Debtor: Credi International Corp. dba Abanico Credi Inc. P.O. Box 9157 San Juan, PR 00908-0157 Bankruptcy Case No.: 12-09582 Chapter 11 Petition Date: December 4, 2012 Court: U.S. Bankruptcy Court District of Puerto Rico (Old San Juan) Debtor's Counsel: Enrique M. Almeida Bernal, Esq. ALMEIDA & DAVILA, P.S.C. P.O. Box 191757 San Juan, PR 00919-1757 Tel: (787) 722-2500 Fax: (787) 722-2227 E-mail: ealmeida@almeidadavila.com Estimated Assets: $0 to $50,000 Estimated Debts: $1,000,001 to $10,000,000 A copy of the Company's list of its eight largest unsecured creditors filed with the petition is available for free at: http://bankrupt.com/misc/prb12-09582.pdf The petition was signed by Carlos Virelles De Armas, president. =============== X X X X X X X X =============== * BOND PRICING: For the Week Dec. 3 to Dec. 7, 2012 --------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- ARGENT GLOBAL 8.75 6/2/2017 USD 72 ARGENT-$DIS 8.28 12/31/2033 USD 50.2 ARGENT-$DIS 8.28 12/31/2033 USD 53.9 ARGENT-$DIS 8.28 12/31/2033 USD 54 ARGENT-$DIS 8.28 12/31/2033 USD 55 ARGENT-$DIS 8.28 12/31/2033 USD 57 ARGENT-PAR 1.18 12/31/2038 ARS 39.6 ARGENT- DIS 7.82 12/31/2033 EUR 45 ARGENT- DIS 7.82 12/31/2033 EUR 51 ARGENT- DIS 7.82 12/31/2033 EUR 49.8 ARGENT- DIS 4.33 12/31/2033 JPY 31 ARGENT- PAR 0.45 12/31/2038 JPY 15 ARGENT- PAR&GDP 0.45 12/31/2038 JPY 8 ARGENTINA 9 11/29/2018 USD 67.3 ARGNT-BOCON PRE9 2 3/15/2014 ARS 53 BANCO DE GALICIA 8.75 5/4/2018 USD 72.5 BANCO DE GALICIA 8.75 5/4/2018 USD 73 BANCO MACRO SA 9.75 12/18/2036 USD 64.5 BANCO MACRO SA 9.75 12/18/2036 USD 65.8 BANCO MACRO SA 9.75 12/18/2036 USD 65.8 BONAR X 7 4/17/2017 USD 73.3 CAPEX SA 10 3/10/2018 USD 63.9 CAPEX SA 10 3/10/2018 USD 63.6 CIA LATINO AMER 9.5 12/15/2016 USD 54 EMP DISTRIB NORT 9.75 10/25/2022 USD 40.9 EMP DISTRIB NORT 10.5 10/9/2017 USD 95 EMP DISTRIB NORT 9.75 10/25/2022 USD 40.5 PROV BUENOS AIRE 9.625 4/18/2028 USD 55.7 PROV BUENOS AIRE 9.625 4/18/2028 USD 55.8 PROV BUENOS AIRE 9.375 9/14/2018 USD 58.9 PROV BUENOS AIRE 10.88 1/26/2021 USD 59.6 PROV BUENOS AIRE 9.375 9/14/2018 USD 59.1 PROV BUENOS AIRE 10.88 1/26/2021 USD 59.6 PROV BUENOS AIRE 11.75 10/5/2015 USD 73.8 PROV BUENOS AIRE 11.75 10/5/2015 USD 73.8 PROV BUENOS AIRE 9.25 4/15/2017 USD 74.7 PROV BUENOS AIRE 9.25 4/15/2017 USD 74.8 PROV DE CORDOBA 12.38 8/17/2017 USD 66.4 PROV DE CORDOBA 12.38 8/17/2017 USD 66.5 PROV DE FORMOSA 5 2/27/2022 USD 57.1 PROV DE MENDOZA 5.5 9/4/2018 USD 69.9 PROV DE MENDOZA 5.5 9/4/2018 USD 69.9 PROV DEL CHACO 4 12/4/2026 USD 23 PROV DEL CHACO 4 11/4/2023 USD 50 PROV DEL NEUQUEN 7.875 4/26/2021 USD 76.7 TRANSENER 9.75 8/15/2021 USD 37.6 TRANSENER 9.75 8/15/2021 USD 45 TRANSENER 8.875 12/15/2016 USD 49.5 BRAZIL ------ REDE EMPRESAS 11.13 USD 38 REDE EMPRESAS 11.13 USD 36 REDE EMPRESAS 11.13 USD 40 CAYMAN ISLAND ------------- BCP FINANCE CO 5.543 EUR 37 BCP FINANCE CO 4.239 EUR 39.2 BES FINANCE LTD 5.58 EUR 57.4 BES FINANCE LTD 4.5 EUR 64 CAM GLOBAL FIN 6.08 12/22/2030 EUR 59.4 CHINA FORESTRY 10.25 11/17/2015 USD 53.3 CHINA FORESTRY 10.25 11/17/2015 USD 53.3 CHINA SUNERGY 4.75 6/15/2013 USD 51.9 EFG ORA FUNDING 1.7 10/29/2014 EUR 70 ESFG INTERNATION 5.753 EUR 42.8 GOL FINANCE 8.75 USD 72.6 GOL FINANCE 8.75 USD 72.4 JINKOSOLAR HOLD 4 5/15/2016 USD 35 LDK SOLAR CO LTD 4.75 4/15/2013 USD 67.5 LDK SOLAR CO LTD 4.75 4/15/2013 USD 63 LUPATECH FINANCE 9.875 44.3 LUPATECH FINANCE 9.875 USD 40 RENHE COMMERCIAL 13 3/10/2016 USD 61.5 RENHE COMMERCIAL 13 3/10/2016 USD 54.5 RENHE COMMERCIAL 11.75 5/18/2015 USD 65.8 RENHE COMMERCIAL 11.75 5/18/2015 USD 65.8 SOLARFUN POWER H 3.5 1/15/2018 USD 77.5 SOLARFUN POWER H 3.5 1/15/2018 USD 74.7 SUNTECH POWER 3 3/15/2013 USD 39.2 SUNTECH POWER 3 3/15/2013 USD 39.3 CHILE ----- CGE DISTRIBUCION 3.25 12/1/2012 CLP 10.2 CHILE 3 1/1/2042 CLP 62.6 CHILE 3 1/1/2042 CLP 62.6 CHILE 3 1/1/2040 CLP 64.2 CHILE 3 1/1/2040 CLP 64.2 CHILE 3 1/1/2032 CLP 73.3 CHILE 3 1/1/2032 CLP 73.3 COLBUN SA 3.2 5/1/2013 CLP 24.9 PUERTO RICO ----------- PUERTO RICO CONS 6.5 4/1/2016 USD 68 PETROLEOS DE VEN 5.5 4/12/2037 USD 60.3 PETROLEOS DE VEN 5.375 4/12/2027 USD 63.3 VENEZUELA --------- VENEZUELA 7 3/31/2038 USD 70.7 VENEZUELA 7 3/31/2038 USD 70.8 *********** 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 * * *