/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/121213.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 Thursday, December 13, 2012, Vol. 13, No. 248 Headlines B E R M U D A AURUM UNIVERSAL: Placed Under Voluntary Wind-Up AURUM UNIVERSAL DOLLAR: Placed Under Voluntary Wind-Up AURUM UNIVERSAL EURO: Placed Under Voluntary Wind-Up AURUM UNIVERSAL FUND: Placed Under Voluntary Wind-Up COMMERCIAL & MANUFACTURERS: Placed Under Voluntary Wind-Up DKR COMMODITY: Placed Under Voluntary Wind-Up DKR IBEX: Placed Under Voluntary Wind-Up DKR IBEX HOLDING: Placed Under Voluntary Wind-Up B O L I V I A * BOLIVIA: Gets US$20-Million IDB Loan for Solid Waste Management B R A Z I L BANCO RURAL: S&P Cuts Issuer Credit Rating to 'B-' on Weak Capital ENERGISA SA: Fitch Hikes Issuer Default Ratings to 'BB' MASTELLONE HERMANOS: S&P Cuts ICR to 'CCC+' on Weaker Liquidity D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: Fitch Affirms 'B' Issuer Default Ratings J A M A I C A * JAMAICA: Gov't to Inject $4 Billion Into Sugar Production M E X I C O AUTOPISTA MONTERREY: Moody's Affirms 'Ba1' Currency Ratings COMPANHIA DE ENERGIA: S&P Cuts ICR to 'SD' on Debt Payment PETROLEUM CO: S&P Assesses Stand-Alone Credit Profile at 'bb-' PROYECTOS ADAMANTINE: S&P Withdraws Rating on MXMACFW 07-6U RMBS * MEXICO: Moody's Says Non-Revolving Consumer Credit Hits Banks T R I N I D A D & T O B A G O CL FIN'L: Campari Gets 99% Offer for Lascelles deMercado Shares X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ============= B E R M U D A ============= AURUM UNIVERSAL: Placed Under Voluntary Wind-Up ----------------------------------------------- At a special general meeting held on Oct. 31, 2012, the members of Aurum Universal Sterling Fund Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Nov. 30, 2012, will be included in the company's dividend distribution. The company's liquidator is: Christopher C. Morris Century House 16 Par-la-Ville Road, Hamilton Bermuda AURUM UNIVERSAL DOLLAR: Placed Under Voluntary Wind-Up ------------------------------------------------------ At a special general meeting held on Oct. 31, 2012, the members of Aurum Universal Dollar Fund Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Nov. 30, 2012, will be included in the company's dividend distribution. The company's liquidator is: Christopher C. Morris Century House 16 Par-la-Ville Road, Hamilton Bermuda AURUM UNIVERSAL EURO: Placed Under Voluntary Wind-Up ---------------------------------------------------- At a special general meeting held on Oct. 31, 2012, the members of Aurum Universal Euro Fund Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Nov. 30, 2012, will be included in the company's dividend distribution. The company's liquidator is: Christopher C. Morris Century House 16 Par-la-Ville Road, Hamilton Bermuda AURUM UNIVERSAL FUND: Placed Under Voluntary Wind-Up ---------------------------------------------------- At a special general meeting held on Oct. 31, 2012, the members of Aurum Universal Fund Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Nov. 30, 2012, will be included in the company's dividend distribution. The company's liquidator is: Christopher C. Morris Century House 16 Par-la-Ville Road, Hamilton Bermuda COMMERCIAL & MANUFACTURERS: Placed Under Voluntary Wind-Up ---------------------------------------------------------- On May 23, 2012, the members of Commercial & Manufacturers Insurance Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Nov. 22, 2012, will be included in the company's dividend distribution. The company's liquidators are: Mike Morrison Charles Thresh KPMG Advisory Limited Crown House, 4 Par-La-Ville Road Hamilton Bermuda DKR COMMODITY: Placed Under Voluntary Wind-Up --------------------------------------------- On Nov. 13, 2012, the member of DKR Commodity Arbitrage Fund Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Nov. 28, 2012, will be included in the company's dividend distribution. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda DKR IBEX: Placed Under Voluntary Wind-Up ---------------------------------------- On Nov. 13, 2012, the member of DKR Ibex Fund Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Nov. 28, 2012, will be included in the company's dividend distribution. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda DKR IBEX HOLDING: Placed Under Voluntary Wind-Up ------------------------------------------------ On Nov. 13, 2012, the member of DKR Ibex Holding Fund Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Nov. 28, 2012, will be included in the company's dividend distribution. The company's liquidator is: Robin J. Mayor Clarendon House, Church Street Hamilton Bermuda ============= B O L I V I A ============= * BOLIVIA: Gets US$20-Million IDB Loan for Solid Waste Management ----------------------------------------------------------------- Bolivia will improve municipal solid waste management services including sweeping, collection, transportation, and disposal, with a $20 million loan from the Inter-American Development Bank (IDB). The program is expected to increase the final disposal of trash in landfills from 37% to 51% nationwide, contributing to environmental improvements in Riberalta, Potosi and other Bolivian cities. The program, which will benefit approximately one million people, was designed taking into account lessons learned throughout successful experiences in other cities, including La Paz. As part of the program, comprehensive municipal service frameworks will be implemented covering street sweeping, collection, transportation, recycling and disposal of solid waste through activities that enhance the quality and coverage of the various services, increase the disposal of trash in landfills and improve the operating efficiency of service providers. The program will also improve the quality of life of recyclers currently working in landfills, offering them training under the framework of a labor inclusion and formalization plan. Participation and training of all stakeholders at all levels of the solid waste management process is crucial to the financial and institutional sustainability of these municipal services. The resources of the loan come from the IDB's Ordinary Capital (OC) and the Fund for Special Operations (FSO). The OC funds, totaling $16 million, will have a 30-year repayment term, a 6-year grace period and a variable interest rate. The remaining $4 million, financed by the FSO, of will have a 40-year repayment term and grace period, with an annual interest rate of 0.25%. =========== B R A Z I L =========== BANCO RURAL: S&P Cuts Issuer Credit Rating to 'B-' on Weak Capital ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its issuer credit rating on Banco Rural S.A. (Rural) to 'B-' from 'B' on global scale and to 'brB' from 'brBB+' on national scale. The outlook is negative. Standard & Poor's bases its ratings on Rural on its "weak" business position, "weak" capital and earnings, "moderate" risk position, "below average" funding, and "moderate" liquidity. The stand-alone credit profile is 'b-'. "The bank decided to exit the payroll deductible segment in 2011, in which it made the last loan in August of that year, following the management's that decision that this product was no longer viable and profitable for the bank. Under the new regulations, revenues from ceded loans must be accrued during the term of this loan, as opposed to the revenues recognized upfront. Also, ceded loans with co-obligation must be provisioned. Furthermore, increasing competition from the large retail banks (many actively winning payroll auctions), a shifting base of loan originators, and their increasing commissions convinced Rural to discontinue this business, which should be completed by 2014. Until then, the bank's results will suffer from this loan portfolio," S&P said. "Recently, the Central Bank required Rural to adjust its exposures twice to comply with regulatory requirements. In addition, Rural's results sharply weakened following credit portfolio deleveraging, exit of the payroll deductible segment, asset quality deterioration, and increasing loan loss provisioning," S&P said. The continuing asset quality deterioration required more loan loss provisioning, which weakened the bank's results further, and this trend will continue in the next few months. However, the bank doesn't have client concentration. ENERGISA SA: Fitch Hikes Issuer Default Ratings to 'BB' ------------------------------------------------------- Fitch Ratings has upgraded Energisa S.A.'s Issuer Default Ratings (IDRs) to 'BB' from 'BB-', and its subsidiaries' IDRs to 'BB+' from 'BB'. The Rating Outlook for all corporate ratings is Stable. The upgrade reflects Energisa's expected ability to keep its consolidated leverage ratios at levels consistent with the assigned rating category, even during a time of higher capital expenditures. Fitch considers the investments in the generation segment as positive, based on asset diversification and more predictable cash flow generation. The generation segment has improved its business profile and should represent 20%-25% of the group's consolidated EBITDA in 2014. Energy generation activities benefit from long-term energy sales contracts with fixed prices adjusted for inflation, which mitigate the cash flow volatility related to periodical tariff reviews of Energisa's energy distribution subsidiaries. Energisa's ratings reflect the company's adequate consolidated financial profile, which is characterized by moderate leverage, robust liquidity, and a lengthened debt maturity profile. The group's credit profile is bolstered by its diversified power distribution concessions, which dilutes business risk, and the benefits of a diversified and growing client base. The ratings also incorporate the group's exposure to foreign exchange movements, hydrological risk, and a moderate regulatory risk. Energisa announced a capital increase estimated to be between BRL300 million and BRL 500 million, which is expected to be completed in the first quarter of 2013. Fitch sees the injection of new capital into the group as positive, depending on how the new funds are used and the time it takes for the new investments to generate cash flow from operations. The one-notch difference between Energisa's ratings and those of its subsidiaries is based on the relevance and structural subordination of the holding company's debt compared to that of the operating companies. The holding company debt represented approximately 35% of net consolidated debt as of Sept. 30, 2012. Sound Operational Profile: In general, Energisa's consolidated cash flow has benefited from a higher than expected increase in energy consumption in the group's concession areas, and, to a lesser extent, from the gradual improvement of its operational indicators. The group has consistently reduced its energy losses, both on a consolidated basis and individually. Currently, all of Energisa's distribution companies report losses below the maximum percentages established by the regulatory agency (Aneel) and contemplated in the energy tariffs, which is an important factor regarding their operating cash flow. For the last 12 months (LTM) ended Sept. 30, 2012, consolidated net revenues, EBITDA and cash flow from operations (CFFO) reached BRL2.7 billion, BRL618 million and BRL604 million, respectively, compared to BRL2.4 billion, BRL555 million and BRL571 million reported in 2011. Fitch believes Energisa should continue to benefit from increased energy consumption in its concession areas in the near future. This aspect, combined with the start-up of some generation projects, could partly offset the negative effects of the third tariff review process. The ongoing tariff review process in Brazil is expected to have a moderately negative impact on Energisa's cash flow generation. The expected negative impact will likely be offset by the commencement of operations of electric generation projects as well as the recent acquisition of energy cogeneration assets from Tonon Bioenergia S.A., which will add to cash flow generation. Although the new tariff has already been announced for two of the company's subsidiaries, these represent only 15% of consolidated EBITDA. The tariff review for the most significant subsidiaries will come in 2013. Negative Free Cash Flow to Improve After Project Start-ups: Energisa's free cash flow (FCF) is expected to stay negative in the next two years as a result of high capital expenditures and dividend distribution. Fitch believes that the generation segment will improve Energisa's business profile, after the start-up of its ongoing projects, which should increase the group's energy generation installed capacity from current 95 MW to 363 MW by 2015. These activities provide more stable cash flow. CFFO was BRL604 million for the LTM ended Sept. 30, 2012. Cash generation was used to fund capital expenditures (approximately BRL402 million within this period, including the power generation projects) and the dividend distribution (BRL103 million), resulting in FCF of BRL99 million. Robust Liquidity and Adequate Debt Profile: Energisa presents comfortable liquidity levels on a consolidated basis. As of Sept. 30, 2012, the group reported BRL868 million of cash and marketable securities, which covered its short-term debt by 1.5x. For the same period, the cash + CFFO-to-short-term debt ratio was 2.5x, evidencing the company's adequate debt repayment schedule. Debt is concentrated in the long term, with maturities well-distributed over time, with some concentration in 2014 and 2015 not being a major concern and an adequate average maturity profile of 4.3 years as of Sept. 30, 2012. Leverage to Remain Adequate Despite High Capex and Third Tariff Review Cycle: Energisa's consolidated net adjusted-debt-to-EBITDA ratio was 3.0x for the LTM ended Sept. 30, 2012, slightly higher than the 2.9x recorded in 2011. Fitch expects Energisa to maintain net leverage between 3.0x and 3.5x during its aggressive investment program in the next two years. For subsequent periods, as the group continues to obtain efficiency gains and to reduce losses, and begins reaping the benefits of the generation projects, leverage should present a decreasing trend. Key Rating Drivers: The ratings could be negatively pressured from higher than anticipated leverage ratios. Relevant acquisitions and/or additional new investments beyond those envisioned and mostly financed by debt could pressure credit quality. A rating upgrade is not likely to happen in the near future. Subsequently, it could be driven by greater CFFO, more conservative leverage and credit protection measures, and increased contribution of cash flow from the energy generation activities. Fitch has taken the following rating actions: Energisa -- Foreign currency IDR upgraded to 'BB' from 'BB-'; -- Local Currency IDR upgraded to 'BB' from 'BB-; -- Long-term national scale rating upgraded to 'A+(bra)' from 'A(bra)'; -- Long-term national rating of the third debentures issuance, in the amount of BRL150 million, due in 2014, upgraded to 'A+(bra)' from 'A(bra)'; -- Long-term international rating of the senior perpetual notes, in the amount of USD200 million, withdrawn due to the buyback of these notes. Energisa Paraiba - Distribuidora de Energia S/A (Energisa Paraiba) -- Foreign currency IDR upgraded to 'BB+', from ''BB'; -- Local Currency IDR upgraded to 'BB+' from ''BB'; -- Long-term national scale rating upgraded to 'AA-(bra)' from 'A+(bra)'; -- Long-term international rating of the notes units, in the amount of USD83 million, due in 2013, upgraded to 'BB+' from ''BB'; -- Long-term national rating of the first debentures issuance, in the amount of BRL80 million, due in 2014, upgraded to 'AA- (bra)' from 'A+(bra)'; Energisa Sergipe- Distribuidora de Energia S/A (Energisa Sergipe) -- Foreign currency IDR upgraded to 'BB+' from ''BB'; -- Local currency IDR upgraded to 'BB+' from ''BB'; -- Long-term national scale rating upgraded to 'AA-(bra)' from 'A+(bra)'; -- Long-term international rating of the notes, in the amount of USD167 million, due in 2013, upgraded to 'BB+, from ''BB'; -- Long-term national rating of the first debentures issuance, in the amount of USD42 million, due in 2015, upgraded to 'A+(bra)' from 'A(bra)'; -- Long-term national rating of the second debentures issuance, in the amount of BRL60 million, due in 2014, upgraded to 'AA- (bra)' from 'A+(bra)'. Energisa Minas Gerais - Distribuidora de Energia S/A (Energisa Minas Gerais) -- Foreign currency IDR upgraded to 'BB+' from ''BB'; -- Local currency IDR upgraded to 'BB+' from ''BB'; -- Long-term national scale rating upgraded to 'AA-(bra)' from 'A+(bra)'; -- Long-term national rating of the seventh debentures issuance, in the amount of BRL60 million, due in 2014, upgraded to 'AA- (bra)' from 'A+(bra)'. MASTELLONE HERMANOS: S&P Cuts ICR to 'CCC+' on Weaker Liquidity --------------------------------------------------------------- Standard & Poor's Ratings Services lowered its issuer credit rating on Mastellone Hermanos S.A. to 'CCC+' from 'B-'. The outlook is negative. Standard & Poor's also said that it lowered its issue rating on the company's senior unsecured notes to 'CCC+' from 'B-'. "The downgrade reflects our view of Mastellone's ability to meet its short-term debt payments, which has led us to revise our assessment of its liquidity profile to 'weak' from 'less than adequate.' We believe that the company depends significantly on exogenous factors to honor its financial obligations, including access to new financing and the extension of credit from its suppliers. According to our base case scenario, the company's sources of funds for the next 12 months fall short of uses by $30 million. Although Mastellone could count on some bank financing and eventually tap the local debt markets to cover this funding gap, we believe that the company's ability to refinance its maturities is scant due to the limited financial flexibility of issuers in the Republic of Argentina (unsolicited foreign and local currency ratings B-/Negative/B). In addition, we expect that it will be very difficult for Mastellone to sustain the extension of credit from its suppliers, which has led to a material cash inflow in 2012," S&P said. S&P's rating on Mastellone also reflects its "vulnerable" business risk profile, "highly leveraged" financial risk profile, "weak" liquidity, and "fair" management and governance. "Our assessment of Mastellone's business risk profile reflects its high exposure to Argentina, where the company has asset and cash flow concentration. Argentine corporates face elevated business risks and challenging refinancing conditions, in our view, given the sovereign's declining credit quality and the high inflation and regulatory risks. Furthermore, Mastellone is exposed to the volatility inherent to the dairy industry. The company's profits greatly depend on the availability and price of raw milk, which is susceptible to uncontrollable factors such as weather and global demand and supply. These factors are partly offset by Mastellone's sound competitive position both as a dairy products marketer and as a raw milk procurer in Argentina. The company also has the leading market share in several dairy products in Argentina, owns one of most recognizable brands in the country (La Seren�sima), and has an efficient distribution network with nationwide coverage. As the largest buyer of raw milk in Argentina, Mastellone has a high bargaining power with dairy farmers," S&P said. "The negative outlook reflects our expectation that Mastellone will remain exposed to high refinancing risk in the coming months as it faces limited funding sources," said Standard & Poor's credit analyst Flavia Bedran. "The company greatly relies on exogenous factors to meet its short-term debt maturities. We could lower the rating if we see further pressure on liquidity due to negative free operating cash flow generation or dwindling cash balances, for instance. We would also lower the rating if the company does not have a viable strategy to refinance its debt maturities. Although unlikely in the near term, we could revise the outlook to stable or even raise the rating if the company is able to address its short-term maturities and improve its debt maturity profile." =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: Fitch Affirms 'B' Issuer Default Ratings -------------------------------------------------------------- Fitch Ratings-New York-11 December 2012: Fitch Ratings has revised the Outlooks on the Dominican Republic's ratings to Stable from Positive. The agency has also affirmed the long-term foreign and local currency Issuer Default Ratings (IDRs) at 'B'. In addition, Fitch has affirmed the Dominican Republic's Country Ceiling at 'B+' and its short-term foreign currency IDR at 'B'. Rating Rationale The revision of the Outlooks to Stable from Positive reflects the deterioration in the sovereign's fiscal accounts; present external vulnerabilities; and the new government's challenges to reduce fiscal deficits and stabilize debt ratios in the context of budgetary rigidities, rising social demands and slower economic growth. Dominican Republic ratings are underpinned by the country's high income per capita and social indicators, diversified service-based economic structure, stable macroeconomic performance, rising gold export receipts and increased fiscal financing flexibility. Electoral spending and revenue underperformance have undermined public finances and fiscal management this year. The central government deficit is estimated to have doubled to 5.4% of GDP in 2012, which is materially worse than Fitch's earlier expectations. This fiscal outturn will exceed the 0.9% of GDP deficit stipulated in the 2012 budget and the additional 3% of GDP deficit approved in a supplementary budget in July 2012. The incoming President Danilo Medina has put forward an ambitious consolidation plan that includes raising taxes by 1.5% of GDP in 2013, withdrawing the infrastructure stimulus of 2% of GDP and containing current spending at the levels observed during non- electoral periods. However, burdensome electricity subsidies and public sector wages as well as legally mandated transfers to recapitalize the central bank and invest in pre-university education represent challenges for the fiscal consolidation strategy. Fiscal deterioration and slower GDP growth has led to a further increase in government indebtedness. Fitch forecasts that the debt burden is likely to remain above 30% of GDP in the coming two years. While lower than the 'B' median, the debt to revenue ratio of over 227% is well above the 'B' median and highlights the narrowness of the country's revenue base. The cyclical slowdown of the economy adds downside risks to fiscal performance. Growth fell from 7.8% in 2010 to 4.5% in 2011 and eased further to 3.9% in Q312. Policy unpredictability and the tax reform continue to affect business confidence and domestic consumption. Fitch forecasts real GDP growth at 3.1% in 2013 and a rebound to 4.5% in 2014, well below the country's five-year average of 5%. Dominican Republic's capacity to weather external shocks is limited. International reserves declined to USD3.5 billion in November 2012, covering two months of current external payments. External financing needs at 117% of reserves remain among the highest in the 'B' category. The new administration will have to preserve investor confidence and restore its fiscal policy credentials to maintain multilateral support and access international capital markets at favorable interest rates. However, the long-awaited start of gold exports by Barrick is strengthening the capacity of the economy to generate larger and more resilient export receipts. Fitch expects the current account deficit to halve to 3.4% of GDP by 2014, half the forecast 'B' median of 7%. The transition towards an inflation targeting regime and a stable currency have enhanced monetary policy credibility and helped anchor inflation expectations. Average inflation fell from 8.5% in 2011 to an expected 4% in 2012, below the official target of 5.5% plus/minus 1%. Market access and the development of the local bond market have increased fiscal financing flexibility. Dominican Republic placed USD1.5 billion in 10-year global bonds between April 2010 and November 2011. On the domestic front, auctioned and private placements of treasury bonds recorded USD1.2bn in 2012, covering 20% of the government's borrowing program. Rating Outlook Stable The main factors that could lead to a positive rating action are: -- Improved fiscal management under the new administration that bolsters confidence in the fiscal consolidation strategy; -- Reduction in external vulnerabilities, which enhances the country's shock-absorption capacity. The main factors that could lead to a negative rating action are: -- Continued fiscal deterioration and growth underperformance leading to negative debt dynamics and macroeconomic instability; -- Financing constraints in the context of fiscal and external pressures. KEY ASSUMPTIONS AND SENSITIVITIES The ratings and Outlooks are sensitive to a number of assumptions: -- Fitch's economic growth forecasts factor in a mild recovery in the U.S. through 2014 and assume that the U.S. fiscal cliff would be avoided. Given the Dominican Republic's significant ties to the U.S. through trade, tourism and remittances, a sharp deterioration in U.S. prospects would materially weaken the island's economic growth performance. -- The reduction in the current account deficit assumes that Barrick sustains annual gold production at one million ounces and international prices fare around USD1,700 per ounce. It also assumes average oil import prices of USD100 per barrel over the next two years. A severe oil price shock could have adverse impact on external and fiscal accounts. -- Fitch assumes that there is no materialisation of severe tail risks to global financial stability that could trigger a sudden stop in capital inflows and hinder external market financing for the Dominican Republic. ============= J A M A I C A ============= * JAMAICA: Gov't to Inject $4 Billion Into Sugar Production ----------------------------------------------------------- RJR News reports that the Jamaican government is to provide JM$4 billion over the next four years to increase sugar production. Minister of Agriculture, Roger Clarke, said despite relative decline, the sugar industry remains important to the Jamaican economy, according to RJR News. The report relates that Mr. Clarke said that through the Cane Expansion Fund, the Government is supporting a massive planting and replanting exercise to take cane farmers output to 1.4 million tons from the current half a million tons. It will also increase cane yields to above 70 tons per hectare from the current average of 50 tons, RJR News notes. RJR News says that the aim is bring 8,000 hectares of new land into production and increase cane production by 800,000 tons within the next four years. =========== M E X I C O =========== AUTOPISTA MONTERREY: Moody's Affirms 'Ba1' Currency Ratings ----------------------------------------------------------- Moody's de Mexico S.A. de C.V. has changed the outlook to stable from negative for the ratings on the Certificados Bursatiles Fiduciarios of Autopista Monterrey Cadereyta. The ratings are affirmed at A1.mx (Mexico National Scale) and Ba1 (Global scale, local currency). The change in outlook stems from the turnaround growth in tolled transactions which are showing a growth of 6% through the third quarter of 2012. While the improvement falls far short of recouping the close to 30% drop in tolled transactions since 2008, it is a change in the right direction in an environment in which the public safety and drug related security issues appear to have tempered. The rating is unlikely to go up at this time, but could improve over the next 18-24 months with a return to traffic in the range of that experienced in 2008 that would once again provide high operating margins and strong debt service coverage above 1.5 times. On the flip side, additional drops in traffic that leads to a 40% - 50% decline from that experienced in 2008, and/or declines in revenue of another 5% -- 10% is likely to push the rating down once again. Ratings Rationale Revenue is expected to rebound to more typical levels this year, and through September toll collections are trending to be up 20% from that of the same period last year. Revenue is also trending above that of the closing financial model, which points to the toll road's ability to meet debt service requirements going forward given that annual debt service remains level at an average of 45 million UDIs through the life of the debt. The debt service coverage (DSCR) ratio in 2011 was 1.08 times, after accounting for capital spending for reconstruction related to the damage caused by Hurricane Alex. The funds would have otherwise been used to prepay debt per the trust agreement restrictions, after meeting the mandatory debt service. The debt service coverage ratio for the first semi-annual period of 2012 was 1.15 times indicating more robust net revenues given the increase in the traffic activity. The second semi-annual the year will be made on December 17 and the DSCR is expected to be at least at similar levels. Funds will be sufficient to make a prepayment in the amount of approximately MXP 26 million, indicating the improvement in the financial footing of the toll road project. Located in the State of Nuevo Le�n (Ba1/A1.mx/NEG), the Autopista Monterrey Cadereyta is a 29km toll road which serves as one of the primary east-west approaches to the municipality of Monterrey (Ba2/A2.mx/STA) metropolitan area. The road provides an important connector to one of the largest Pemex refineries in the country, which is located along the toll road in Cadereyta. Nuevo Le�n's economy is among the most dynamic in Mexico, and is the third largest economy in Mexico contributing 7.5% of national Gross Domestic Product (GDP). GDP per capita is approximately 180% of the national level. An important part of the metro area's economic base consists of industrial conglomerates and multinational corporations, which support a high level of economic diversification. Additionally, the road is a vital route for traffic to the U.S. via its connection to the federal road that leads to Laredo, Tx. Approximately 60% of the trade from Mexico goes through the crossing at Laredo, thus making truck traffic an important component of the road's users. Autopista Monterrey Cadereyta has historically been rated under the Operating Toll Roads rating methodology and is in transition to being rated under the Government Owned Toll Roads rating methodology, which was updated and published in October 2012. The date of the last Credit Rating Action was August 11, 2011. COMPANHIA DE ENERGIA: S&P Cuts ICR to 'SD' on Debt Payment ---------------------------------------------------------- Standard & Poor's Ratings Services downgraded Companhia de Energia Eletrica do Estado do Tocantins (Celtins) to 'SD' from 'CC'. "At the same time, we affirmed our 'SD' rating on Centrais Eletricas Matogrossenses S.A. (Cemat). Celtins and Cemat are electric energy distribution companies, which Brazil-based Rede Energia S.A. owns," S&P said. "The downgrade reflects Celtins' standstill agreement with some of its creditors to defer its debt service payments, as part of the request for debt restructuring with all its creditors. In accordance with our criteria and the lack of appropriate compensation with respect to the deferred obligations, we view the restructuring as tantamount to default. The standstill agreement that both companies signed (Cemat signed one earlier) temporarily prevents the payment acceleration of the issuances and is part of their strategy to renegotiate its debt. The ratings on both will remain at 'SD' until the obligations are subsequently restructured," S&P said. PETROLEUM CO: S&P Assesses Stand-Alone Credit Profile at 'bb-' -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BBB' corporate credit and senior unsecured ratings on Petrotrin. The outlook is stable. "The rating affirmation follows our regular annual review," S&P said. "The 'BBB' corporate credit rating on Petrotrin reflects our opinion that there is a very high likelihood that the Republic of Trinidad and Tobago (A/Stable/A-1) would provide timely and sufficient extraordinary support to Petrotrin in the event of financial distress. We assess Petrotrin's stand-alone credit profile (SACP) at 'bb-'," S&P said. The rating also reflects Petrotrin's limited geographic and asset concentration in refining and oil and gas exploration and production, its refinery's dependence on premium but mature local and regional niche markets, and its large capital expenditures. "The rating also incorporates Trinidad and Tobago's position as a leading producer of refined products, the only significant producer of crude oil among Caribbean nations, and Petrotrin's ability to supply small mixed-cargo deliveries to customers in the Caribbean market. We assess the company's business risk profile as 'weak' and financial risk profile as 'aggressive.' Also, we assess the company's management and governance as 'fair,'" S&P said. PROYECTOS ADAMANTINE: S&P Withdraws Rating on MXMACFW 07-6U RMBS ---------------------------------------------------------------- Standard & Poor's Rating Services withdrew its long-term ratings on eight tranches from four Mexican residential mortgage-backed securities (RMBS) transactions issued by Proyectos Adamantine, S.A. de C.V., SOFOM, E.N.R. (former GMAC Financiera). "We also withdrew the underlying ratings (SPURs) on two series. The rating withdrawals were made at issuer's request," S&P said. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATINGS WITHDRAWN Series Rating Outs. amount Tranche type To From (mil. UDI) MXMACFW 06U Senior NR C (sf) 98.85 MXMACFW 06U Senior NR mxCC (sf) 98.85 MXMACFW 06-2U Sub. NR D (sf) 15.60 MXMACFW 07U Senior NR CCC+ (sf) 124.39 MXMACFW 07U Senior NR mxB (sf) 124.39 MXMACFW 07-2U Sub. NR mxCCC (sf) 14.67 MXMACFW 07-3U Senior NR B (sf) 199.55 MXMACFW 07-3U Senior NR mxBB+ (sf) 199.55 MXMACFW 07-3U SPUR NR CC (sf) 199.55 MXMACFW 07-4U Sub. NR mxCC (sf) 18.18 MXMACFW 07-5U Senior NR B (sf) 106.07 MXMACFW 07-5U Senior NR mxBB+ (sf) 106.07 MXMACFW 07-5U SPUR NR CC (sf) 106.07 MXMACFW 07-6U Sub. NR mxCC (sf) 14.89 NR - Not rated. * MEXICO: Moody's Says Non-Revolving Consumer Credit Hits Banks --------------------------------------------------------------- Mexican banks exposure to non-revolving consumer loans is up over 32% over year ago, as banks loosen lending standards and increase lending amounts, says Moody's Investors Service in a new special comment "Fast Expansion of Non-Revolving Consumer Credit Weakens Mexican Banks' Asset Quality." The swift expansion in mainly unsecured lending has caused an almost doubling of nonperforming loans in 18 months, says Moody's. "The rapid rise of nonperforming loans raises our concerns that Mexican banks are venturing into a high risk, high margin loan segment that will weaken asset quality," says Felipe Carvallo, a Moody's Assistant Vice President and author of the report. Moody's special comment finds that the fast growth of non- revolving consumer loans and resultant increase in delinquency is linked to loosening origination standards indicated by longer loan durations and larger average amounts. Moody's notes that non-revolving consumer loans in the Mexican banking system comprise all consumer lending products, excluding credit cards. Payroll-linked loans and personal loans represented about 71% of non-revolving consumer loans as of September 2012. In the period between February and September 2012, payroll-linked loans expanded by a annual average growth rate of 41%, while personal loans were up by 49%. The rapid growth feels similar to the environment just ahead of Mexico's 2008 credit card crisis, notes Moody's. Still, these concerns are balanced by the low indebtedness levels among Mexican households, the still modest share of non-revolving consumer loans relative to total loans and Mexican banks' adequate reserve cushion and diversified portfolios that help mitigate the risk of significant losses, says Moody's. The report is titled "Fast Expansion of Non-Revolving Consumer Credit Weakens Mexican Banks' Asset Quality". =============================== T R I N I D A D & T O B A G O =============================== CL FIN'L: Campari Gets 99% Offer for Lascelles deMercado Shares --------------------------------------------------------------- Jamaica Gleaner reports that the Italy-based producer of alcoholic and non-alcoholic beverages, Davide Campari-Milano Group, on Monday described as successful the 99% acceptance of its tender offer for all issued and outstanding ordinary and preferred shares of Lascelles deMercado and Company. The offer expired and Campari received more than 94.6 million ordinary shares of Lascelles deMercado, or approximately 98.6% of the issued ordinary shares, according to Jamaica Gleaner. The report relates that it also received 59,727 preferred shares of Lascelles deMercado, or about 99.5% of the issued preferred shares, Campari said in a release. Campari said it intends to exercise its right pursuant to a statutory process under Jamaica law to acquire all the remaining shares, including from those shareholders who have not accepted the offer, Jamaica Gleaner notes. "The total value of the shares acquired through the offer is approximately US$409 million," said Campari, which had offered US$414.7 million for the entire 100% shareholding at J$4.32 per ordinary share, Jamaica Gleaner discloses. The report relays that the acceptance will result in the delisting of Lascelles deMercado's shares from the Jamaica Stock Exchange. Jamaica Gleaner says that the tender offer was made following a November 8 offer circular in accordance with the Jamaica Takeovers and Mergers Rules and Regulations. Campari first announced this transaction on September 3. The deal transfers one of Jamaica's oldest company, J. Wray & Nephew Limited, to European ownership, the report relays. It also gives Campari ownership of the iconic Appleton rum brand and assets, Jamaica Gleaner notes. Lascelles deMercado was sold by its Jamaican owners to CL Financial Group of Trinidad in 2008, the report recalls. 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. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Jan. 24-25, 2013 AMERICAN BANKRUPTCY INSTITUTE Rocky Mountain Bankruptcy Conference Four Seasons Hotel Denver, Denver, Colo. Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 7-9, 2013 AMERICAN BANKRUPTCY INSTITUTE Caribbean Involvency Symposium Eden Roc Renaissance, Miami Beach, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 17-19, 2013 AMERICAN BANKRUPTCY INSTITUTE Advanced Consumer Bankruptcy Practice Institute Charles Evans Whittaker Courthouse, Kansas City, Mo. Contact: 1-703-739-0800; http://www.abiworld.org/ Feb. 20-22, 2013 AMERICAN BANKRUPTCY INSTITUTE VALCON Four Seasons Las Vegas, Las Vegas, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ Apr. 18-21, 2013 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ June 13-16, 2013 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Mich. Contact: 1-703-739-0800; http://www.abiworld.org/ July 11-13, 2013 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 18-21, 2013 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 8-10, 2013 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 22-24, 2013 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ Nov. 1, 2013 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Atlanta Marriott Marquis, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2, 2013 BEARD GROUP, INC. 19th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York, N.Y. Contact: 240-629-3300 or http://bankrupt.com/ Dec. 5-7, 2013 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Terranea Resort, Rancho Palos Verdes, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ The Meetings, Conferences and Seminars column appears in the Troubled Company Reporter each Wednesday. Submissions via e-mail to conferences@bankrupt.com are encouraged. *********** 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 * * *