/raid1/www/Hosts/bankrupt/TCRLA_Public/130205.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
Tuesday, February 5, 2013, Vol. 14, No. 25
Headlines
A R G E N T I N A
CAPEX SA: Fitch Affirms 'B-' For. Curr. Issuer Default Rating
GENNEIA: Moody's Rates Class XI Notes Offer 'B3/A3.ar'
SUPERVIELLE CREDITOS 68: Moody's Rates ARS15-Million Certs 'B2'
* ARGENTINA: Utilities Seek to Raise Revenue, Nacion Relates
B A R B A D O S
CL FIN'L: CLICO Faces US$64 Million Suit in Barbados
B E L I Z E
* BELIZE: Agree With Creditors to Restructure Debt, Barrow Says
B R A Z I L
BANCO BTG: Fitch Affirms 'BB' Subordinated Notes Rating
BANCO PANAMERICANO: Fitch Affirms 'BB+' LT Issuer Default Ratings
BRAZILIAN FINANCE: Fitch Affirms 'BB+' LT Issuer Default Ratings
BRAZILIAN MORTGAGES: Fitch Affirms 'B' ST Issuer Default Ratings
BRAZILIAN SECURITIES: Fitch Affirms 'B' ST Issuer Default Ratings
C A Y M A N I S L A N D S
AL DANA SHARIAH: Commences Liquidation Proceedings
BGI MULTI-STRATEGY: Commences Liquidation Proceedings
CAYMAN ECONOMIC: Placed Under Voluntary Wind-Up
CHAMOMILE REALTY: Commences Liquidation Proceedings
CROWN INVESTMENT: Commences Liquidation Proceedings
GMI GLOBAL: Commences Liquidation Proceedings
GOLDEN ARCHES: Placed Under Voluntary Wind-Up
IHS INVESTMENTS: Commences Liquidation Proceedings
JF TWO: Commences Liquidation Proceedings
NAUTILUS GLOBAL: Commences Liquidation Proceedings
ORISTAN OPPORTUNITY: Commences Liquidation Proceedings
ORISTAN OPPORTUNITY MANAGEMENT: Commences Liquidation Proceedings
RASMALA ISLAMIC: Commences Liquidation Proceedings
RASMALA ISLAMIC GLOBAL: Commences Liquidation Proceedings
REMEDIAL CAYMAN: Placed Under Voluntary Wind-Up
RODOMONTE FUNDING: Commences Liquidation Proceedings
SEAGULL HOLDING: Commences Liquidation Proceedings
SEVENWOOD LIMITED: Placed Under Voluntary Wind-Up
SPRING ASSET: Commences Liquidation Proceedings
SWAN CAPITAL: Commences Liquidation Proceedings
X X X X X X X X
* Large Companies With Insolvent Balance Sheets
- - - - -
=================
A R G E N T I N A
=================
CAPEX SA: Fitch Affirms 'B-' For. Curr. Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has affirmed these ratings of Capex S.A.:
-- Foreign currency Issuer Default Rating (FC IDR) at 'B-',
Outlook Negative;
-- Local currency (LC) IDR at 'B-', Outlook Negative;
-- USD200 million senior unsecured notes due 2018 at 'B-/RR4';
-- National scale ratings at 'A(arg)', Outlook Stable;
-- National scale senior unsecured notes at 'A(arg)'.
The 'B-' ratings of Capex S.A. are constrained by the 'B-' country
ceiling of Argentina. The Negative Rating Outlooks that have been
assigned to the FC and LC IDRs are in line with ones assigned to
Argentina's sovereign ratings and reflect the high degree of
uncertainty about the business climate and economic conditions
that should persist throughout 2013.
The ratings are also restricted by the high regulatory risks
associated with operating in the electricity sector in Argentina,
exposure to devaluation risk (currency mismatch between peso-
denominated cash flows and dollar-denominated debt), and the need
to pursue an aggressive capital expenditure plan in the long term
to sustain the company's vertically integrated business model.
Capex is an integrated thermoelectric generating company.
Originally formed as an oil exploration and production company,
Capex was transformed into an electric generation company due to
its large discoveries of natural gas in 1991, coupled with the
liberalization of Argentina's electricity sector. Capex is amongst
the 12 largest producers of gas and liquefied petroleum gas (LPG)
in Argentina's oil & gas sector. As of fiscal year ended (FYE)
April 30, 2012, 64.1% of Capex's sales were derived from electric
sales and 35.9% from oil and other liquids sales. In the last
fiscal year, gross energy generation was 3,270 GWh (gigawatt
hours), a decline of 14.9% compared to the year before due to a
one-time external event that affected the combined cycle
generation for four months.
Capex benefits from operating efficiencies as an integrated
thermoelectric generating company in Argentina and the flexibility
from having its own natural gas reserves, as approximately 80% of
gas needs at the electric plant being self-supplied. This gives
the company an advantage against other players in the industry,
especially given existing gas restrictions in the country. Capex's
generating units are efficient, and the proximity to its natural
gas reserves in the Agua del Cajon field coupled with gas
transportation restrictions from Neuquen basin to the main
consumption area in Buenos Aires reduce the gas supply risk.
Regulatory risk is high. Electricity and gas prices remain sub-
optimal compared with other countries in the region; this has
discouraged investments in both sectors. Capital investments for
maintenance in the power generation industry depend on
discretional approvals by the regulatory authority. In addition,
the cost of power generation has increased significantly due to
natural gas restrictions and reliance on more expensive fuels,
while electric tariffs have been frozen (especially to the
residential market). Such deficit between electricity tariffs and
industry costs is funded through subsidies, which depend on public
funding.
Capex's cash flow generation is volatile; power generation is,
among other things, subject to regulatory issues and weather
conditions. Operating cash flow generation is concentrated in
Argentina. During the first six months of FYE April 30, 2013, as
of Oct. 31, 2012, Capex generated USD23 million in funds from
operations (FFO) and funded USD25.8 million of capital
expenditures. Capex has some flexibility to manage capital
expenditures in the short term. Yet, in the long run investments
are vital to secure the company's vertically integrated model.
Proven gas reserves cover approximately six to eight years of the
electric plant's needs (depending on the percentage bought in the
market and the power generation).
Fitch believes Capex's leverage needs to remain moderate to
mitigate regulatory risks. At Oct. 31, 2012, Capex had a total
debt-to-EBITDA ratio of 3.9x and EBITDA-to-interest of 2.1x. As of
Oct.31, 2012, the company had USD7.5 million of short-term cash
and marketable securities and USD43 million in long term debt.
These figures compared to USD26.7 million of short-term debt.
During 2011, Capex issued USD200 million of notes maturing in
2018. These notes account for the majority of the company's
USD243.9 million of total debt at the end of October.
SENSITIVITY/RATING DRIVERS
The Stable Outlook reflects Fitch's expectations that Capex will
manage its balance sheet to a targeted debt-to-EBITDA ratio of
around 3.0x. Under a conservative scenario, Fitch estimates the
company's interest coverage to be around 2.5x.
Any significant increase in Capex's targeted leverage ratio would
threaten credit quality and could result in a negative rating
action. Also, ratings could be negatively affected by a sustained
decline in gas reserves and production or failure to further
develop new fields, threatening the integrated business model in
the long term. In addition, ratings could be affected by a
significant and sustained change in the regulatory environment.
GENNEIA: Moody's Rates Class XI Notes Offer 'B3/A3.ar'
------------------------------------------------------
Moody's Latin America has assigned B3/A3.ar ratings to Genneia's
Class XI proposed notes for up to USD 20 million (expandable up to
USD 35 million) and affirmed its B3/A3.ar global local currency
corporate family rating and the current B3/A3.ar senior unsecured
rating on Genneia's outstanding Notes. The outlook for all ratings
is stable.
Genneia will use proceeds from the new notes to complete the
financing of its 2013 investment program.
Rating Rationale:
The B3/A3.ar ratings are supported by Moody's expectation of
stable cash flows arising from its wind and "energia distribuida"
(ED) operations and moderate leverage.
The wind generation that entered into commercial operations in
early 2012 is producing energy in line with expectations, showing
capacity factors above 40% and, therefore, stable revenues under a
long term, fixed price contract. In addition, in spite of reduced
prices under the renewed ED contracts, the company has extended
its contractual horizon to 7 years from the original 3 year
contract. This agreement going forward should also generate stable
revenues of approximately USD 120 million per year .
The ratings are also supported by the various payment mechanisms
available for debt repayment. Most of Genneia's outstanding debt
is payable from direct transfers to a trustee arising from
collections under the Res. 220 ED contracts and by payments under
the off-take contract with Cammesa for the wind farm production,
which has a fixed price per MWh for a 15-year period.
Consequently, Genneia's improved operating performance after the
initial delays in the implementation of its ED project should
result in significant debt reduction over coming years.
Nevertheless, the ratings remain mainly constrained by the
concentration of its operations in only the Argentinean market,
which has been highly unpredictable in recent years. Furthermore,
most of Genneia's cash flows arise from contracts where the off-
taker is Cammesa, a federal government agency that administers the
wholesale electricity market in Argentina. Cammesa administers not
only the operation of the system but also manages its collections
and payments. Since the price paid for electricity by most
consumers is not enough to cover electricity production costs,
Cammesa faces an ongoing operating deficit that is currently
financed with federal government resources to facilitate payments
to the producers. This represents a high degree of exposure to the
Argentine government credit risk (B3, Negative), which adds a
constraint to the ratings.
Additional constraining factors are Genneia's relatively tight
liquidity and limited financial flexibility. In particular,
Moody's sees Genneia's limited flexibility under its current bank
loan covenants and short term debt concentration as challenging
over the short term. Longer term, the rating agency expects
Genneia's operations to stabilize, leverage to decline and
financial flexibility to improve.
The stable outlook reflects Moody's expectation that Genneia will
stabilize its cash flows and operations during fiscal year 2013
and beyond while reducing leverage over time.
Negative pressure on the ratings or outlook could occur if
Genneia's financial policy becomes more aggressive than expected.
Specifically, Moody's would become concerned should debt to EBITDA
exceed 4.5x times; interest coverage (CFO pre WC +
Interest/Interest) falls below 1.5x or RCF /Debt becomes lower
than 15%.
The ratings could also come under downward pressure if payments
from Cammesa begin to experience significant delays. In addition,
given Genneia's exposure to the Argentine government credit risk,
a negative rating action at the sovereign level could also add
further downwards rating pressure.
Given the current constraining factors on Genneia's ratings,
limited prospects exist for an upgrade over the near term. Longer
term a rating up-grade would require Genneia to continue to
generate stable cash flows from its ED business and from its wind
generation farm for which Moody's would expect capacity
realizations of around 40%. Quantitatively, a rating upgrade would
require Genneia to generate CFO (pre WC) to debt of above 20%, and
positive levels of FCF on a sustainable basis in conjunction with
a stabilization of the sovereign government rating.
Genneia S.A., headquartered in the province of Buenos Aires,
Argentina, initiated operations in 1991 in the gas distribution
and transportation business under its previous denomination
"Emgasud". However, since 2008 power generation has been its main
business, contributing more than 80% of its total revenues. For
the last 12 months ending September 2012, Genneia reported
revenues of approximately USD 140 million.
SUPERVIELLE CREDITOS 68: Moody's Rates ARS15-Million Certs 'B2'
---------------------------------------------------------------
Moody's rates Supervielle Creditos 68, which is a transaction that
will be issued by Equity Trust S.A. - acting solely in its
capacity as Issuer and Trustee. As of February 1, 2013, the
securities for this transaction have not yet been placed in the
market. If any assumption or factor Moody's considers when
assigning the ratings change before closing, the ratings may also
change.
ARS75,000,000 in Class A Fixed Rate Debt Securities of
"Fideicomiso Financiero Supervielle Creditos 68", rated Aaa.ar
(sf) (Argentine National Scale) and Ba3 (sf) (Global Scale,
Local Currency)
ARS160,000,000 in Class B Floating Rate Debt Securities of
"Fideicomiso Financiero Supervielle Creditos 68", rated Aaa.ar
(sf) (Argentine National Scale) and Ba3 (sf) (Global Scale,
Local Currency)
ARS15,000,000 in Certificates of "Fideicomiso Financiero
Supervielle Creditos 68", rated Aa3.ar (sf) (Argentine National
Scale) and B2 (sf) (Global Scale, Local Currency)
Ratings Rationale:
The rated securities are payable from the cash flow coming from
the assets of the trust, which is an amortizing pool of
approximately 36,002 eligible personal loans denominated in
Argentine pesos, with a fixed interest rate, originated by Banco
Supervielle, in an aggregate amount of ARS250,001,796.10
These personal loans are granted to pensioners that receive their
monthly pensions from ANSES (Argentina's National Governmental
Agency of Social Security-Administracion Nacional de la Seguridad
Social). The pool is also constituted by loans granted to
government employees of the Province of San Luis. Banco
Supervielle is the payment agent entity and automatically deducts
the monthly loan installment directly from the employee's paycheck
and pensioner's payment.
Overall credit enhancement is comprised of subordination: 6% for
the Class A Fixed Rate Debt Securities, 6% for the Floating Rate
Securities, calculated under the occurrence of a special event. In
addition the transaction has various reserve funds and excess
spread.
Moody's considered the credit enhancement provided in this
transaction through the initial subordination levels for each
rated class, as well as the historical performance of
Supervielle's portfolio. In addition, Moody's considered factors
common to consumer loans securitizations such as delinquencies,
prepayments and losses; as well as specific factors related to the
Argentine market, such as the probability of an increase in losses
if there are changes in the macroeconomic scenario in Argentina.
These factors were incorporated in a cash flow model that takes
into account all the relevant features of the transaction's assets
and liabilities. Monte Carlo simulations were run, which
determines the expected loss for the rated securities.
Moody's considered factors common to consumer loans
securitizations such as delinquencies, prepayments and losses; as
well as specific factors related to the Argentine market. These
factors were incorporated in a cash flow model in order to
determine the expected loss for the rated securities. Finally,
Moody's also evaluated the back-up servicing arrangements in the
transaction.
In assigning the rating to this transaction, Moody's assumed a
lognormal distribution for defaults on the main pool with a mean
of 2.5% and a coefficient of variation of 50%. Also, Moody's
assumed a lognormal distribution for prepayments with a mean of
25% and a coefficient of variation of 70%. These assumptions are
derived from the historical performance to date of the
Supervielle's pools. Servicer default was modeled by simulating
the default of the Banco Supervielle as the servicer consistent
with its current rating of B2/Aa3.ar. In the scenarios where the
servicer defaults, Moody's assumed that the defaults on the pool
would increase by 20 percentage points.
The model results showed 0.01% expected loss for Class A Fixed
Rate Debt Securities, 1.26% for Class B Floating Rate Debt
Securities and 7.33% for the Certificates.
Moody's ran several stress scenarios, including increases in the
default rate assumptions. If default rates were increased 3
percentage points from the base case scenario for the pool (i.e.,
mean of 5.5% and a coefficient of variation of 50%), the ratings
of Class A Fixed Rate debt securities and Class B Floating Rate
debt securities would remain the same. The ratings for the
Certificates would be likely downgraded to Caa1 (sf).
Moody's also considered the risk that a disruption in the flow of
payments from ANSES or the Government of San Luis to pensioners
and employees respectively, could severely affect the performance
of the pool. Moody's believes that the ratings assigned are
consistent with this risk.
Finally, Moody's also evaluated the back-up servicing arrangements
in the transaction. If Banco Supervielle is removed as servicer,
Equity Trust S.A. will be appointed as the back-up servicer.
* ARGENTINA: Utilities Seek to Raise Revenue, Nacion Relates
------------------------------------------------------------
Camila Russo at Bloomberg News reports that some Argentine power
companies sent letters to the government last month asking for a
change in the regulatory framework which caps rates, the newspaper
La Nacion reported, without saying how it obtained the
information.
Electricity companies including Central Puerto SA, Endesa
Costanera S.A. and Central Termica Loma de la Lata SA told Deputy
Economy Minister Axel Kicillof they need higher revenue to afford
salary increases for their unions, La Nacion reported, according
to Bloomberg News.
Bloomberg News relates that the Argentine government has kept caps
on utility rates since the country's 2002 financial crises, La
Nacion said.
Companies filed for bankruptcy protection and others left the
country as inflation at an estimated 25% caused costs to rise
faster than revenue, Bloomberg News says.
===============
B A R B A D O S
===============
CL FIN'L: CLICO Faces US$64 Million Suit in Barbados
----------------------------------------------------
Caribbean360.com reports that after four years of waiting without
redress, the representative body for the investors and
policyholders in the Barbados operations of failed insurance
companies CLICO and British American Insurance Company (BAICO)
have launched a multi-million dollar lawsuit to reclaim
outstanding monies owed to them.
In a release issued to the media, the Barbados Investors and
Policyholders Alliance (BIPA) had instructed their attorneys-at-
Law, Alair Shepherd QC and Esther Obiora Arthur, to serve Pre-
Action Protocol Letters to the directors of BAICO and CLICO, as
well as to the Supervisor of Insurance, the Attorney General of
Barbados and auditors PricewaterhouseCoopers, according to
Caribbean360.com.
The report relates that the letters are accompanied by Draft
Statements of Claims, which list a litany of alleged acts of
negligence on the part of the Directors and Auditors of BAICO and
CLICO, as well as the alleged negligence and breach of statutory
duties on the part of the then Supervisor of Insurance, all of
which it is claimed individually and collectively contributed to
the unnecessary demise of the two companies, and the consequent
massive losses to policyholders.
The report discloses that the Attorney General is being sued as
representing the Crown, which is responsible for the actions and
defaults of the Supervisor of Insurance. The claims associated
with BAICO amount to BDS$52 million, while those relating to CLICO
amount to BDS$76 million, the report says.
BAICO directors named in the claim as defendants are:
-- Lawrence Duprey,
-- Brian Branker, and
-- Robert Fullerton.
In the CLICO Claim, directors named as Defendants are:
-- Leroy Parris,
-- Anthony Ellis,
-- Terrence Thornhill,
-- Woodbine Davis QC,
-- Leslie Haynes QC,
-- Elridge Thompson,
-- Adrian Lorde,
-- Basil Springer,
-- Edrick Griffith, and
-- Vishnu Ramlogan.
The defendants are required to respond within 14 days of the Pre-
Action Protocol Letters, failing which; legal proceedings will be
commenced without further notice.
"It is with a heavy heart that BIPA has instructed its Attorneys-
at-Law to proceed with these actions. . . . but as we approach the
fourth anniversary of the collapse of CLICO in Trinidad, the
35,000 policyholders of both BAICO and CLICO in Barbados are no
closer to a satisfactory resolution, despite many of our regional
neighbours having taken action and come up with plans, some of
which are already repaying policyholders," the report quoted BIPA
President June Fowler as saying.
The report notes that BIPA stated it hoped that this action will
bring to justice those who failed in their statutory duties either
by action or omission and were thus culpable in allowing the
situation to develop and deteriorate unchecked. BIPA also notes
that the respective Judicial Managers have failed to pursue these
avenues to recover the shortfalls suffered by the companies and
their policyholders, the report discloses.
While the Alliance campaigns for the rights and restitution of
funds to all 35,000 policyholders in Barbados, the Court action
names as Claimants, only those policyholders who are members of
BIPA so the recovery may be limited to the losses suffered by
those individuals, the report adds.
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.
===========
B E L I Z E
===========
* BELIZE: Agree With Creditors to Restructure Debt, Barrow Says
---------------------------------------------------------------
Adam Williams at Bloomberg News reports that Belize's defaulted
bondholders and the government agreed to restructure US$544
million of the country's debt, Prime Minister Dean Barrow told
reporters.
The final terms, that will save Belize as much as US$33 million
this year, will be disclosed soon, Barrow said from Belize City,
according to Bloomberg News.
===========
B R A Z I L
===========
BANCO BTG: Fitch Affirms 'BB' Subordinated Notes Rating
-------------------------------------------------------
Fitch Ratings has affirmed the ratings of Banco BTG Pactual S.A.
and its subsidiaries: Banco Panamericano S.A., Brazilian Finance &
Real Estate, Brazilian Mortgages Companhia Hipotecaria and
Brazilian Securities Companhia de Securitizacao. The Rating
Outlook of all entities is Stable.
Rating Action and Rationale
The rating affirmation and Stable Outlook for BTG Pactual reflects
its solid franchise as a merchant bank and solid profitability
through economic cycles. Management has expanded the balance sheet
rapidly over the last several years, although risk controls are
considered strong. These strengths are counterbalanced by weaker
leverage and a steady increase of less liquid assets, although the
long-term financing is growing accordingly.
In the last five years, BTG Pactual has been aided by capital
injections, including a recent IPO in 2012 (capital injection of
BRL 4.5 billion since 2010). As a result, BTG Pactual expanded its
activities into consumer financing (through BP), financial
services to the real estate sector (including real estate
financing and securitizations through BFRE, BM and BS) and also
expanded into the brokerage business and investment banking in
several countries of Latin America (Chile, Colombia and Peru).
All these acquisitions were funded with capital injections and
should assist future income diversification. Currently, the
subsidiaries provide limited income to BTG Pactual due their small
size and/or the need to revamp their business model. Most of the
acquisitions have been completed and new management has been
appointed. As such, execution risks have decreased, though
monetizing the investments is still a challenge.
BTG Pactual's capital and leverage ratios have weakened
considerably since end-2010 as a result of the fast balance sheet
growth. Leverage metrics have remained fairly stable recently but
somewhat weaker than similarly rated peers. Tangible equity to
tangible assets has averaged 7% since 2010. Gross leverage
measured as total assets over Fitch Core Capital (FCC) was 14.6x
as of September 2012 (adjusted leverage of 7.5%). This relative
weakness is partially offset by BTG Pactual's history of stable
profitability. That said, it certainly demands a more conservative
approach by the bank in times when its profitability may be
pressured by the low interest rate environment and heightened
competition.
BP's VR remains limited by weak profitability, poor asset capital
and negligible capital base. The bank enjoys a stable funding base
with committed funding and liquidity lines from both its
controlling shareholders: BTG Pactual and Caixa Economica Federal
(Caixa, Foreign Currency LT IDR rated 'BBB' with a Stable Outlook
by Fitch).
SENSITIVITY/RATING DRIVERS: VR's and IDR's
Fitch may downgrade BTG Pactual's VR and IDRs due a deterioration
of its leverage (adjusted leverage above 8x), a decrease in its
operating profit ratio or unexpected large trading losses. Also, a
sudden deterioration of the operating environment or a troublesome
performance of one or more of its subsidiaries may negatively
affect BTG Pactual's ratings. Fitch believes that the potential
for near-term rating upgrades is limited due to the bank's
business model, wholesale funding structure, and weak leverage.
Future upgrades would be dependent on a broader business mix,
consistent adjusted leverage below 5x, and a lower share of income
derived from proprietary trading.
Fitch believes that there is also limited rating upside over the
near-term for BP's VR. A longer than expected breakeven point of
its operations and diminution of already low capital ratios may
trigger a negative rating action by Fitch.
SENSITIVITY/RATING DRIVERS: Support and Support Rating Floors
BTG Pactual's current IDRs are equal with its VR. Given its nature
of merchant/investment bank and relative small deposit base; Fitch
believes that the probability of support from the government is
unlikely.
SENSITIVITY/RATING DRIVERS: Subordinated Debt and other Hybrid
Securities
Subordinated debt and other hybrid capital issued by BTG Pactual
are all notched down from the banks' VR. These securities two
notches lower than BTG Pactual's VR, one notch lower due to Loss
Severity features and its subordinated status, and a one-notch
deduction due to moderate risk of non-performance. The
subordinated debt and hybrid capital ratings are primarily
sensitive to any change in the VR of the bank.
SENSITIVITY/RATING DRIVERS: Subsidiary Ratings
BP, BFRE, BM and BS are strategically important subsidiaries for
BTG Pactual. As a result, the ratings are one notch lower from the
parent IDR. Fitch believes that despite their relatively small
size and low earnings contribution, these entities are part of BTG
Pactual's plan to diversify away from merchant banking. The IDR's
and National Scale Ratings of Banco Pactual subsidiaries would be
affected if their strategic importance and ability to provide
support from BTG Pactual changes; Fitch believes that the
likelihood of this scenario is low.
Fitch has affirmed these ratings:
BTG Pactual
--Long-Term Foreign and Local Currency IDRs at 'BBB-', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'F3';
--Viability Rating at 'bbb-';
--Support Rating at '5';
--Support Rating Floor at 'No Floor';
--Long-Term National Rating at 'AA(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)';
--Senior unsecured notes, due in July 2016, Foreign Currency
Rating at 'BBB-';
--Senior unsecured notes, due in September 2017, Foreign Currency
Rating at 'BBB-';
--Subordinated notes due in September 2022, Foreign Currency
Rating at 'BB';
--Senior unsecured notes due in January 2020, Foreign Currency
Rating at 'BBB-'.
BP
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Viability Rating at 'b';
--Support Rating at '3';
--Support Rating Floor withdrawn;
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)'.
BFRE
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)'.
Brazilian Mortgages Companhia Hipotecaria (BM)
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)'.
Brazilian Securities Companhia de Securitizacao (BS)
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)';
--First debenture issuance due in October 2014, Long-Term
National Rating at 'AA-(bra)'.
BANCO PANAMERICANO: Fitch Affirms 'BB+' LT Issuer Default Ratings
-----------------------------------------------------------------
Fitch Ratings has affirmed the ratings of Banco BTG Pactual S.A.
and its subsidiaries: Banco Panamericano S.A., Brazilian Finance &
Real Estate, Brazilian Mortgages Companhia Hipotecaria and
Brazilian Securities Companhia de Securitizacao. The Rating
Outlook of all entities is Stable.
RATING ACTION AND RATIONALE
The rating affirmation and Stable Outlook for BTG Pactual reflects
its solid franchise as a merchant bank and solid profitability
through economic cycles. Management has expanded the balance sheet
rapidly over the last several years, although risk controls are
considered strong. These strengths are counterbalanced by weaker
leverage and a steady increase of less liquid assets, although the
long-term financing is growing accordingly.
In the last five years, BTG Pactual has been aided by capital
injections, including a recent IPO in 2012 (capital injection of
BRL 4.5 billion since 2010). As a result, BTG Pactual expanded its
activities into consumer financing (through BP), financial
services to the real estate sector (including real estate
financing and securitizations through BFRE, BM and BS) and also
expanded into the brokerage business and investment banking in
several countries of Latin America (Chile, Colombia and Peru).
All these acquisitions were funded with capital injections and
should assist future income diversification. Currently, the
subsidiaries provide limited income to BTG Pactual due their small
size and/or the need to revamp their business model. Most of the
acquisitions have been completed and new management has been
appointed. As such, execution risks have decreased, though
monetizing the investments is still a challenge.
BTG Pactual's capital and leverage ratios have weakened
considerably since end-2010 as a result of the fast balance sheet
growth. Leverage metrics have remained fairly stable recently but
somewhat weaker than similarly rated peers. Tangible equity to
tangible assets has averaged 7% since 2010. Gross leverage
measured as total assets over Fitch Core Capital (FCC) was 14.6x
as of September 2012 (adjusted leverage of 7.5%). This relative
weakness is partially offset by BTG Pactual's history of stable
profitability. That said, it certainly demands a more conservative
approach by the bank in times when its profitability may be
pressured by the low interest rate environment and heightened
competition.
BP's VR remains limited by weak profitability, poor asset capital
and negligible capital base. The bank enjoys a stable funding base
with committed funding and liquidity lines from both its
controlling shareholders: BTG Pactual and Caixa Economica Federal
(Caixa, Foreign Currency LT IDR rated 'BBB' with a Stable Outlook
by Fitch).
SENSITIVITY/RATING DRIVERS: VR's and IDR's
Fitch may downgrade BTG Pactual's VR and IDRs due a deterioration
of its leverage (adjusted leverage above 8x), a decrease in its
operating profit ratio or unexpected large trading losses. Also, a
sudden deterioration of the operating environment or a troublesome
performance of one or more of its subsidiaries may negatively
affect BTG Pactual's ratings. Fitch believes that the potential
for near-term rating upgrades is limited due to the bank's
business model, wholesale funding structure, and weak leverage.
Future upgrades would be dependent on a broader business mix,
consistent adjusted leverage below 5x, and a lower share of income
derived from proprietary trading.
Fitch believes that there is also limited rating upside over the
near-term for BP's VR. A longer than expected breakeven point of
its operations and diminution of already low capital ratios may
trigger a negative rating action by Fitch.
SENSITIVITY/RATING DRIVERS: Support and Support Rating Floors
BTG Pactual's current IDRs are equal with its VR. Given its nature
of merchant/investment bank and relative small deposit base; Fitch
believes that the probability of support from the government is
unlikely.
SENSITIVITY/RATING DRIVERS: Subordinated Debt and other Hybrid
Securities
Subordinated debt and other hybrid capital issued by BTG Pactual
are all notched down from the banks' VR. These securities two
notches lower than BTG Pactual's VR, one notch lower due to Loss
Severity features and its subordinated status, and a one-notch
deduction due to moderate risk of non-performance. The
subordinated debt and hybrid capital ratings are primarily
sensitive to any change in the VR of the bank.
SENSITIVITY/RATING DRIVERS: Subsidiary Ratings
BP, BFRE, BM and BS are strategically important subsidiaries for
BTG Pactual. As a result, the ratings are one notch lower from the
parent IDR. Fitch believes that despite their relatively small
size and low earnings contribution, these entities are part of BTG
Pactual's plan to diversify away from merchant banking. The IDR's
and National Scale Ratings of Banco Pactual subsidiaries would be
affected if their strategic importance and ability to provide
support from BTG Pactual changes; Fitch believes that the
likelihood of this scenario is low.
Fitch has affirmed these ratings:
BTG Pactual
--Long-Term Foreign and Local Currency IDRs at 'BBB-', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'F3';
--Viability Rating at 'bbb-';
--Support Rating at '5';
--Support Rating Floor at 'No Floor';
--Long-Term National Rating at 'AA(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)';
--Senior unsecured notes, due in July 2016, Foreign Currency
Rating at 'BBB-';
--Senior unsecured notes, due in September 2017, Foreign Currency
Rating at 'BBB-';
--Subordinated notes due in September 2022, Foreign Currency
Rating at 'BB';
--Senior unsecured notes due in January 2020, Foreign Currency
Rating at 'BBB-'.
BP
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Viability Rating at 'b';
--Support Rating at '3';
--Support Rating Floor withdrawn;
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)'.
BFRE
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)'.
Brazilian Mortgages Companhia Hipotecaria (BM)
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)'.
Brazilian Securities Companhia de Securitizacao (BS)
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)';
--First debenture issuance due in October 2014, Long-Term
National Rating at 'AA-(bra)'.
BRAZILIAN FINANCE: Fitch Affirms 'BB+' LT Issuer Default Ratings
----------------------------------------------------------------
Fitch Ratings has affirmed the ratings of Banco BTG Pactual S.A.
and its subsidiaries: Banco Panamericano S.A., Brazilian Finance &
Real Estate, Brazilian Mortgages Companhia Hipotecaria and
Brazilian Securities Companhia de Securitizacao. The Rating
Outlook of all entities is Stable.
Rating Action and Rationale
The rating affirmation and Stable Outlook for BTG Pactual reflects
its solid franchise as a merchant bank and solid profitability
through economic cycles. Management has expanded the balance sheet
rapidly over the last several years, although risk controls are
considered strong. These strengths are counterbalanced by weaker
leverage and a steady increase of less liquid assets, although the
long-term financing is growing accordingly.
In the last five years, BTG Pactual has been aided by capital
injections, including a recent IPO in 2012 (capital injection of
BRL 4.5 billion since 2010). As a result, BTG Pactual expanded its
activities into consumer financing (through BP), financial
services to the real estate sector (including real estate
financing and securitizations through BFRE, BM and BS) and also
expanded into the brokerage business and investment banking in
several countries of Latin America (Chile, Colombia and Peru).
All these acquisitions were funded with capital injections and
should assist future income diversification. Currently, the
subsidiaries provide limited income to BTG Pactual due their small
size and/or the need to revamp their business model. Most of the
acquisitions have been completed and new management has been
appointed. As such, execution risks have decreased, though
monetizing the investments is still a challenge.
BTG Pactual's capital and leverage ratios have weakened
considerably since end-2010 as a result of the fast balance sheet
growth. Leverage metrics have remained fairly stable recently but
somewhat weaker than similarly rated peers. Tangible equity to
tangible assets has averaged 7% since 2010. Gross leverage
measured as total assets over Fitch Core Capital (FCC) was 14.6x
as of September 2012 (adjusted leverage of 7.5%). This relative
weakness is partially offset by BTG Pactual's history of stable
profitability. That said, it certainly demands a more conservative
approach by the bank in times when its profitability may be
pressured by the low interest rate environment and heightened
competition.
BP's VR remains limited by weak profitability, poor asset capital
and negligible capital base. The bank enjoys a stable funding base
with committed funding and liquidity lines from both its
controlling shareholders: BTG Pactual and Caixa Economica Federal
(Caixa, Foreign Currency LT IDR rated 'BBB' with a Stable Outlook
by Fitch).
SENSITIVITY/RATING DRIVERS: VR's and IDR's
Fitch may downgrade BTG Pactual's VR and IDRs due a deterioration
of its leverage (adjusted leverage above 8x), a decrease in its
operating profit ratio or unexpected large trading losses. Also, a
sudden deterioration of the operating environment or a troublesome
performance of one or more of its subsidiaries may negatively
affect BTG Pactual's ratings. Fitch believes that the potential
for near-term rating upgrades is limited due to the bank's
business model, wholesale funding structure, and weak leverage.
Future upgrades would be dependent on a broader business mix,
consistent adjusted leverage below 5x, and a lower share of income
derived from proprietary trading.
Fitch believes that there is also limited rating upside over the
near-term for BP's VR. A longer than expected breakeven point of
its operations and diminution of already low capital ratios may
trigger a negative rating action by Fitch.
SENSITIVITY/RATING DRIVERS: Support and Support Rating Floors
BTG Pactual's current IDRs are equal with its VR. Given its nature
of merchant/investment bank and relative small deposit base; Fitch
believes that the probability of support from the government is
unlikely.
SENSITIVITY/RATING DRIVERS: Subordinated Debt and other Hybrid
Securities
Subordinated debt and other hybrid capital issued by BTG Pactual
are all notched down from the banks' VR. These securities two
notches lower than BTG Pactual's VR, one notch lower due to Loss
Severity features and its subordinated status, and a one-notch
deduction due to moderate risk of non-performance. The
subordinated debt and hybrid capital ratings are primarily
sensitive to any change in the VR of the bank.
SENSITIVITY/RATING DRIVERS: Subsidiary Ratings
BP, BFRE, BM and BS are strategically important subsidiaries for
BTG Pactual. As a result, the ratings are one notch lower from the
parent IDR. Fitch believes that despite their relatively small
size and low earnings contribution, these entities are part of BTG
Pactual's plan to diversify away from merchant banking. The IDR's
and National Scale Ratings of Banco Pactual subsidiaries would be
affected if their strategic importance and ability to provide
support from BTG Pactual changes; Fitch believes that the
likelihood of this scenario is low.
Fitch has affirmed these ratings:
BTG Pactual
--Long-Term Foreign and Local Currency IDRs at 'BBB-', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'F3';
--Viability Rating at 'bbb-';
--Support Rating at '5';
--Support Rating Floor at 'No Floor';
--Long-Term National Rating at 'AA(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)';
--Senior unsecured notes, due in July 2016, Foreign Currency
Rating at 'BBB-';
--Senior unsecured notes, due in September 2017, Foreign Currency
Rating at 'BBB-';
--Subordinated notes due in September 2022, Foreign Currency
Rating at 'BB';
--Senior unsecured notes due in January 2020, Foreign Currency
Rating at 'BBB-'.
BP
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Viability Rating at 'b';
--Support Rating at '3';
--Support Rating Floor withdrawn;
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)'.
BFRE
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)'.
Brazilian Mortgages Companhia Hipotecaria (BM)
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)'.
Brazilian Securities Companhia de Securitizacao (BS)
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)';
--First debenture issuance due in October 2014, Long-Term
National Rating at 'AA-(bra)'.
BRAZILIAN MORTGAGES: Fitch Affirms 'B' ST Issuer Default Ratings
----------------------------------------------------------------
Fitch Ratings has affirmed the ratings of Banco BTG Pactual S.A.
and its subsidiaries: Banco Panamericano S.A., Brazilian Finance &
Real Estate, Brazilian Mortgages Companhia Hipotecaria and
Brazilian Securities Companhia de Securitizacao. The Rating
Outlook of all entities is Stable.
Rating Action and Rationale
The rating affirmation and Stable Outlook for BTG Pactual reflects
its solid franchise as a merchant bank and solid profitability
through economic cycles. Management has expanded the balance sheet
rapidly over the last several years, although risk controls are
considered strong. These strengths are counterbalanced by weaker
leverage and a steady increase of less liquid assets, although the
long-term financing is growing accordingly.
In the last five years, BTG Pactual has been aided by capital
injections, including a recent IPO in 2012 (capital injection of
BRL 4.5 billion since 2010). As a result, BTG Pactual expanded its
activities into consumer financing (through BP), financial
services to the real estate sector (including real estate
financing and securitizations through BFRE, BM and BS) and also
expanded into the brokerage business and investment banking in
several countries of Latin America (Chile, Colombia and Peru).
All these acquisitions were funded with capital injections and
should assist future income diversification. Currently, the
subsidiaries provide limited income to BTG Pactual due their small
size and/or the need to revamp their business model. Most of the
acquisitions have been completed and new management has been
appointed. As such, execution risks have decreased, though
monetizing the investments is still a challenge.
BTG Pactual's capital and leverage ratios have weakened
considerably since end-2010 as a result of the fast balance sheet
growth. Leverage metrics have remained fairly stable recently but
somewhat weaker than similarly rated peers. Tangible equity to
tangible assets has averaged 7% since 2010. Gross leverage
measured as total assets over Fitch Core Capital (FCC) was 14.6x
as of September 2012 (adjusted leverage of 7.5%). This relative
weakness is partially offset by BTG Pactual's history of stable
profitability. That said, it certainly demands a more conservative
approach by the bank in times when its profitability may be
pressured by the low interest rate environment and heightened
competition.
BP's VR remains limited by weak profitability, poor asset capital
and negligible capital base. The bank enjoys a stable funding base
with committed funding and liquidity lines from both its
controlling shareholders: BTG Pactual and Caixa Economica Federal
(Caixa, Foreign Currency LT IDR rated 'BBB' with a Stable Outlook
by Fitch).
SENSITIVITY/RATING DRIVERS: VR's and IDR's
Fitch may downgrade BTG Pactual's VR and IDRs due a deterioration
of its leverage (adjusted leverage above 8x), a decrease in its
operating profit ratio or unexpected large trading losses. Also, a
sudden deterioration of the operating environment or a troublesome
performance of one or more of its subsidiaries may negatively
affect BTG Pactual's ratings. Fitch believes that the potential
for near-term rating upgrades is limited due to the bank's
business model, wholesale funding structure, and weak leverage.
Future upgrades would be dependent on a broader business mix,
consistent adjusted leverage below 5x, and a lower share of income
derived from proprietary trading.
Fitch believes that there is also limited rating upside over the
near-term for BP's VR. A longer than expected breakeven point of
its operations and diminution of already low capital ratios may
trigger a negative rating action by Fitch.
SENSITIVITY/RATING DRIVERS: Support and Support Rating Floors
BTG Pactual's current IDRs are equal with its VR. Given its nature
of merchant/investment bank and relative small deposit base; Fitch
believes that the probability of support from the government is
unlikely.
SENSITIVITY/RATING DRIVERS: Subordinated Debt and other Hybrid
Securities
Subordinated debt and other hybrid capital issued by BTG Pactual
are all notched down from the banks' VR. These securities two
notches lower than BTG Pactual's VR, one notch lower due to Loss
Severity features and its subordinated status, and a one-notch
deduction due to moderate risk of non-performance. The
subordinated debt and hybrid capital ratings are primarily
sensitive to any change in the VR of the bank.
SENSITIVITY/RATING DRIVERS: Subsidiary Ratings
BP, BFRE, BM and BS are strategically important subsidiaries for
BTG Pactual. As a result, the ratings are one notch lower from the
parent IDR. Fitch believes that despite their relatively small
size and low earnings contribution, these entities are part of BTG
Pactual's plan to diversify away from merchant banking. The IDR's
and National Scale Ratings of Banco Pactual subsidiaries would be
affected if their strategic importance and ability to provide
support from BTG Pactual changes; Fitch believes that the
likelihood of this scenario is low.
Fitch has affirmed these ratings:
BTG Pactual
--Long-Term Foreign and Local Currency IDRs at 'BBB-', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'F3';
--Viability Rating at 'bbb-';
--Support Rating at '5';
--Support Rating Floor at 'No Floor';
--Long-Term National Rating at 'AA(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)';
--Senior unsecured notes, due in July 2016, Foreign Currency
Rating at 'BBB-';
--Senior unsecured notes, due in September 2017, Foreign Currency
Rating at 'BBB-';
--Subordinated notes due in September 2022, Foreign Currency
Rating at 'BB';
--Senior unsecured notes due in January 2020, Foreign Currency
Rating at 'BBB-'.
BP
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Viability Rating at 'b';
--Support Rating at '3';
--Support Rating Floor withdrawn;
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)'.
BFRE
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)'.
Brazilian Mortgages Companhia Hipotecaria (BM)
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)'.
Brazilian Securities Companhia de Securitizacao (BS)
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)';
--First debenture issuance due in October 2014, Long-Term
National Rating at 'AA-(bra)'.
BRAZILIAN SECURITIES: Fitch Affirms 'B' ST Issuer Default Ratings
----------------------------------------------------------------
Fitch Ratings has affirmed the ratings of Banco BTG Pactual S.A.
and its subsidiaries: Banco Panamericano S.A., Brazilian Finance &
Real Estate, Brazilian Mortgages Companhia Hipotecaria and
Brazilian Securities Companhia de Securitizacao. The Rating
Outlook of all entities is Stable.
Rating Action and Rationale
The rating affirmation and Stable Outlook for BTG Pactual reflects
its solid franchise as a merchant bank and solid profitability
through economic cycles. Management has expanded the balance sheet
rapidly over the last several years, although risk controls are
considered strong. These strengths are counterbalanced by weaker
leverage and a steady increase of less liquid assets, although the
long-term financing is growing accordingly.
In the last five years, BTG Pactual has been aided by capital
injections, including a recent IPO in 2012 (capital injection of
BRL 4.5 billion since 2010). As a result, BTG Pactual expanded its
activities into consumer financing (through BP), financial
services to the real estate sector (including real estate
financing and securitizations through BFRE, BM and BS) and also
expanded into the brokerage business and investment banking in
several countries of Latin America (Chile, Colombia and Peru).
All these acquisitions were funded with capital injections and
should assist future income diversification. Currently, the
subsidiaries provide limited income to BTG Pactual due their small
size and/or the need to revamp their business model. Most of the
acquisitions have been completed and new management has been
appointed. As such, execution risks have decreased, though
monetizing the investments is still a challenge.
BTG Pactual's capital and leverage ratios have weakened
considerably since end-2010 as a result of the fast balance sheet
growth. Leverage metrics have remained fairly stable recently but
somewhat weaker than similarly rated peers. Tangible equity to
tangible assets has averaged 7% since 2010. Gross leverage
measured as total assets over Fitch Core Capital (FCC) was 14.6x
as of September 2012 (adjusted leverage of 7.5%). This relative
weakness is partially offset by BTG Pactual's history of stable
profitability. That said, it certainly demands a more conservative
approach by the bank in times when its profitability may be
pressured by the low interest rate environment and heightened
competition.
BP's VR remains limited by weak profitability, poor asset capital
and negligible capital base. The bank enjoys a stable funding base
with committed funding and liquidity lines from both its
controlling shareholders: BTG Pactual and Caixa Economica Federal
(Caixa, Foreign Currency LT IDR rated 'BBB' with a Stable Outlook
by Fitch).
SENSITIVITY/RATING DRIVERS: VR's and IDR's
Fitch may downgrade BTG Pactual's VR and IDRs due a deterioration
of its leverage (adjusted leverage above 8x), a decrease in its
operating profit ratio or unexpected large trading losses. Also, a
sudden deterioration of the operating environment or a troublesome
performance of one or more of its subsidiaries may negatively
affect BTG Pactual's ratings. Fitch believes that the potential
for near-term rating upgrades is limited due to the bank's
business model, wholesale funding structure, and weak leverage.
Future upgrades would be dependent on a broader business mix,
consistent adjusted leverage below 5x, and a lower share of income
derived from proprietary trading.
Fitch believes that there is also limited rating upside over the
near-term for BP's VR. A longer than expected breakeven point of
its operations and diminution of already low capital ratios may
trigger a negative rating action by Fitch.
SENSITIVITY/RATING DRIVERS: Support and Support Rating Floors
BTG Pactual's current IDRs are equal with its VR. Given its nature
of merchant/investment bank and relative small deposit base; Fitch
believes that the probability of support from the government is
unlikely.
SENSITIVITY/RATING DRIVERS: Subordinated Debt and other Hybrid
Securities
Subordinated debt and other hybrid capital issued by BTG Pactual
are all notched down from the banks' VR. These securities two
notches lower than BTG Pactual's VR, one notch lower due to Loss
Severity features and its subordinated status, and a one-notch
deduction due to moderate risk of non-performance. The
subordinated debt and hybrid capital ratings are primarily
sensitive to any change in the VR of the bank.
SENSITIVITY/RATING DRIVERS: Subsidiary Ratings
BP, BFRE, BM and BS are strategically important subsidiaries for
BTG Pactual. As a result, the ratings are one notch lower from the
parent IDR. Fitch believes that despite their relatively small
size and low earnings contribution, these entities are part of BTG
Pactual's plan to diversify away from merchant banking. The IDR's
and National Scale Ratings of Banco Pactual subsidiaries would be
affected if their strategic importance and ability to provide
support from BTG Pactual changes; Fitch believes that the
likelihood of this scenario is low.
Fitch has affirmed these ratings:
BTG Pactual
--Long-Term Foreign and Local Currency IDRs at 'BBB-', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'F3';
--Viability Rating at 'bbb-';
--Support Rating at '5';
--Support Rating Floor at 'No Floor';
--Long-Term National Rating at 'AA(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)';
--Senior unsecured notes, due in July 2016, Foreign Currency
Rating at 'BBB-';
--Senior unsecured notes, due in September 2017, Foreign Currency
Rating at 'BBB-';
--Subordinated notes due in September 2022, Foreign Currency
Rating at 'BB';
--Senior unsecured notes due in January 2020, Foreign Currency
Rating at 'BBB-'.
BP
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Viability Rating at 'b';
--Support Rating at '3';
--Support Rating Floor withdrawn;
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)'.
BFRE
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)'.
Brazilian Mortgages Companhia Hipotecaria (BM)
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)'.
Brazilian Securities Companhia de Securitizacao (BS)
--Long-Term Foreign and Local Currency IDRs at 'BB+', Outlook
Stable;
--Short-Term Foreign and Local Currency IDRs at 'B';
--Long-Term National Rating at 'AA-(bra)', Outlook Stable;
--Short-Term National Rating at 'F1+(bra)';
--First debenture issuance due in October 2014, Long-Term
National Rating at 'AA-(bra)'.
==========================
C A Y M A N I S L A N D S
==========================
AL DANA SHARIAH: Commences Liquidation Proceedings
--------------------------------------------------
On Nov. 20, 2012, the members of Al Dana Shariah Compliant Global
Equity Manager Selection Fund Ltd. resolved to voluntarily
liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Dec. 24, 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
BGI MULTI-STRATEGY: Commences Liquidation Proceedings
-----------------------------------------------------
On Nov. 20, 2012, the members of The BGI Multi-Strategy Select
(Sterling) Fund Limited resolved to voluntarily liquidate the
company's business.
Only creditors who were able to file their proofs of debt by
Jan. 3, 2013, will be included in the company's dividend
distribution.
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
CAYMAN ECONOMIC: Placed Under Voluntary Wind-Up
-----------------------------------------------
On Nov. 20, 2012, the sole member of Cayman Economic Development
Ltd resolved to voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Dec. 27, 2012, will be included in the company's dividend
distribution.
The company's liquidator is:
Gene Dacosta
c/o Noel Webb
Telephone: (345) 814 7394
Facsimile: (345) 945 3902
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
CHAMOMILE REALTY: Commences Liquidation Proceedings
---------------------------------------------------
On Nov. 16, 2012, the sole shareholder of Chamomile Realty Corp.
resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Jan. 2, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
CROWN INVESTMENT: Commences Liquidation Proceedings
---------------------------------------------------
On Nov. 16, 2012, the members of Crown Investment Company Limited
resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Jan. 3, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
GMI GLOBAL: Commences Liquidation Proceedings
---------------------------------------------
On Nov. 19, 2012, the shareholders of GMI Global Funds Limited
resolved to voluntarily liquidate the company's business.
The company's liquidator is:
Glenn Chin-Yuen Chao
c/o Alan G. de Saram
Telephone: 345-949-4544
Facsimile: 345-949-7073
e-mail: alandesaram@card.com.ky
Charles Adams Ritchie & Duckworth
Zephyr House, 122 Mary Street
PO Box 709 Grand Cayman KY1-1107
Cayman Islands
GOLDEN ARCHES: Placed Under Voluntary Wind-Up
---------------------------------------------
At an extraordinary general meeting held on Nov. 19, 2012, the
shareholders of Golden Arches Limited resolved to voluntarily wind
up the company's operations.
Only creditors who were able to file their proofs of debt by
Jan. 3, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Buchanan Limited
c/o Allison Kelly
Telephone: (345) 949-0355
Facsimile: (345)949-0360
P.O. Box 1170 George Town, Grand Cayman
Cayman Islands KY1-1102
IHS INVESTMENTS: Commences Liquidation Proceedings
--------------------------------------------------
On Nov. 16, 2012, the sole shareholder of IHS Investments Limited
resolved to voluntarily liquidate the company's business.
The company's liquidator is:
Michael Sharp
15 Inverness Way East
W300C, Englewood, CO 80112
USA
JF TWO: Commences Liquidation Proceedings
-----------------------------------------
On Nov. 16, 2012, the sole shareholder of JF Two Holdings Corp. II
resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Jan. 2, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
NAUTILUS GLOBAL: Commences Liquidation Proceedings
--------------------------------------------------
On Nov. 20, 2012, the shareholders of Nautilus Global Capital
resolved to voluntarily liquidate the company's business.
The company's liquidator is:
Wei Liu
c/o Stephen Nelson
Telephone: 949-4544
Facsimile: 949-8460
Charles Adams Ritchie & Duckworth
Zephyr House, 122 Mary Street
PO Box 709
Grand Cayman KY1-1107
Cayman Islands
ORISTAN OPPORTUNITY: Commences Liquidation Proceedings
------------------------------------------------------
On Nov. 15, 2012, the shareholders of Oristan Opportunity Fund
Investments Limited resolved to voluntarily liquidate the
company's business.
Only creditors who were able to file their proofs of debt by
Jan. 3, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust Corporate Services (Cayman) Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
ORISTAN OPPORTUNITY MANAGEMENT: Commences Liquidation Proceedings
-----------------------------------------------------------------
On Nov. 15, 2012, the shareholders of Oristan Opportunity Fund
Management Limited resolved to voluntarily liquidate the company's
business.
Only creditors who were able to file their proofs of debt by
Jan. 3, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust Corporate Services (Cayman) Limited
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
RASMALA ISLAMIC: Commences Liquidation Proceedings
--------------------------------------------------
On Nov. 20, 2012, the members of Rasmala Islamic Global Equity
Opportunity Ltd. resolved to voluntarily liquidate the company's
business.
Only creditors who were able to file their proofs of debt by
Dec. 24, 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
RASMALA ISLAMIC GLOBAL: Commences Liquidation Proceedings
---------------------------------------------------------
On Nov. 20, 2012, the members of Rasmala Islamic Global Equity
Opportunity Fund resolved to voluntarily liquidate the company's
business.
Only creditors who were able to file their proofs of debt by
Dec. 24, 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
REMEDIAL CAYMAN: Placed Under Voluntary Wind-Up
-----------------------------------------------
On Nov. 20, 2012, the sole member of Remedial Cayman ESV2 Limited
resolved to voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Dec. 27, 2012, will be included in the company's dividend
distribution.
The company's liquidator is:
Richard Finlay
c/o Noel Webb
Telephone: (345) 814 7394
Facsimile: (345) 945 3902
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
RODOMONTE FUNDING: Commences Liquidation Proceedings
----------------------------------------------------
On Nov. 15, 2012, the shareholders of Rodomonte Funding Ltd.
resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Jan. 2, 2013, will be included in the company's dividend
distribution.
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
SEAGULL HOLDING: Commences Liquidation Proceedings
--------------------------------------------------
On Nov. 6, 2012, the shareholder of Seagull Holding Limited
resolved to voluntarily liquidate the company's business.
The company's liquidator is:
Rebecca Hume
Telephone: (345) 949.4544
Facsimile: (345) 949.8460
Charles Adams Ritchie & Duckworth
PO Box 709
122 Mary Street Grand Cayman KY1-1107
Cayman Islands
SEVENWOOD LIMITED: Placed Under Voluntary Wind-Up
-------------------------------------------------
At an extraordinary general meeting held on Nov. 19, 2012, the
shareholders of Sevenwood Limited resolved to voluntarily wind up
the company's operations.
Only creditors who were able to file their proofs of debt by
Jan. 3, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Buchanan Limited
c/o Allison Kelly
Telephone: (345) 949-0355
Facsimile: (345)949-0360
P.O. Box 1170 George Town, Grand Cayman
Cayman Islands KY1-1102
SPRING ASSET: Commences Liquidation Proceedings
-----------------------------------------------
At an extraordinary meeting held on Nov. 22, 2012, the members of
Spring Asset Funding Ltd. resolved to voluntarily liquidate the
company's business.
The company's liquidator is:
David Dyer
Deutsche Bank (Cayman) Limited
PO Box 1984, Boundary Hall
Cricket Square, 171 Elgin Avenue
Grand Cayman KY1-1104
Cayman Islands
SWAN CAPITAL: Commences Liquidation Proceedings
-----------------------------------------------
On Nov. 6, 2012, the shareholder of Swan Capital Limited resolved
to voluntarily liquidate the company's business.
The company's liquidator is:
Rebecca Hume
Telephone: (345) 949.4544
Facsimile: (345) 949.8460
Charles Adams Ritchie & Duckworth
PO Box 709
122 Mary Street Grand Cayman KY1-1107
Cayman Islands
===============
X X X X X X X X
===============
* Large Companies With Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker (US$MM) (US$MM)
------- ------ --------- ------------
ARGENTINA
-----------
SNIAFA SA-B SDAGF US 11229696.22 -2670544.88
CENTRAL COSTAN-B CRCBF US 410955501 -20459083
ENDESA COSTAN-A CECO1 AR 410955501 -20459083
ENDESA COSTAN- CECO2 AR 410955501 -20459083
CENTRAL COST-BLK CECOB AR 410955501 -20459083
ENDESA COSTAN- CECOD AR 410955501 -20459083
ENDESA COSTAN- CECOC AR 410955501 -20459083
ENDESA COSTAN- EDCFF US 410955501 -20459083
CENTRAL COSTAN-C CECO3 AR 410955501 -20459083
CENTRAL COST-ADR CCSA LI 410955501 -20459083
ENDESA COST-ADR CRCNY US 410955501 -20459083
CENTRAL COSTAN-B CNRBF US 410955501 -20459083
SNIAFA SA SNIA AR 11229696.22 -2670544.88
SNIAFA SA-B SNIA5 AR 11229696.22 -2670544.88
IMPSAT FIBER NET IMPTQ US 535007008 -17164978
IMPSAT FIBER NET 330902Q GR 535007008 -17164978
IMPSAT FIBER NET XIMPT SM 535007008 -17164978
IMPSAT FIBER-CED IMPT AR 535007008 -17164978
IMPSAT FIBER-C/E IMPTC AR 535007008 -17164978
IMPSAT FIBER-$US IMPTD AR 535007008 -17164978
IMPSAT FIBER-BLK IMPTB AR 535007008 -17164978
BRAZIL
------
FABRICA TECID-RT FTRX1 BZ 71426302.46 -70883547.3
TEKA-ADR TEKAY US 341291511.1 -388484677
BOMBRIL BMBBF US 344846084.5 -16082109.1
TEKA TKTQF US 341291511.1 -388484677
TEKA-PREF TKTPF US 341291511.1 -388484677
BATTISTELLA-RIGH BTTL1 BZ 246036232.2 -51251360.7
BATTISTELLA-RI P BTTL2 BZ 246036232.2 -51251360.7
BATTISTELLA-RECE BTTL9 BZ 246036232.2 -51251360.7
BATTISTELLA-RECP BTTL10 BZ 246036232.2 -51251360.7
AGRENCO LTD-BDR AGEN11 BZ 640440282.3 -323456366
REII INC REIC US 14423532 -3506007
PET MANG-RIGHTS 3678565Q BZ 246810936.7 -224879124
PET MANG-RIGHTS 3678569Q BZ 246810936.7 -224879124
PET MANG-RECEIPT 0229292Q BZ 246810936.7 -224879124
PET MANG-RECEIPT 0229296Q BZ 246810936.7 -224879124
BOMBRIL HOLDING FPXE3 BZ 19416015.78 -489914902
BOMBRIL FPXE4 BZ 19416015.78 -489914902
SANESALTO SNST3 BZ 31802628.1 -2924062.87
B&D FOOD CORP BDFCE US 14423532 -3506007
BOMBRIL-RGTS PRE BOBR2 BZ 344846084.5 -16082109.1
BOMBRIL-RIGHTS BOBR1 BZ 344846084.5 -16082109.1
AGRENCO LTD AGRE LX 640440282.3 -323456366
CELGPAR GPAR3 BZ 2657428496 -817505840
RECRUSUL - RT 4529781Q BZ 41094940.32 -21379158.8
RECRUSUL - RT 4529785Q BZ 41094940.32 -21379158.8
RECRUSUL - RCT 4529789Q BZ 41094940.32 -21379158.8
RECRUSUL - RCT 4529793Q BZ 41094940.32 -21379158.8
RECRUSUL-BON RT RCSL11 BZ 41094940.32 -21379158.8
RECRUSUL-BON RT RCSL12 BZ 41094940.32 -21379158.8
BALADARE BLDR3 BZ 159454015.9 -52992212.8
TEXTEIS RENAU-RT TXRX1 BZ 118475706.5 -73851057.6
TEXTEIS RENAU-RT TXRX2 BZ 118475706.5 -73851057.6
TEXTEIS RENA-RCT TXRX9 BZ 118475706.5 -73851057.6
TEXTEIS RENA-RCT TXRX10 BZ 118475706.5 -73851057.6
CIA PETROLIF-PRF MRLM4 BZ 377602195.2 -3014291.72
CIA PETROLIFERA MRLM3 BZ 377602195.2 -3014291.72
CONST BETER SA COBE3 BZ 31374373.74 -1555470.16
NOVA AMERICA SA NOVA3 BZ 21287489 -183535527
NOVA AMERICA-PRF NOVA4 BZ 21287489 -183535527
ALL ORE MINERACA AORE3 BZ 21657457.41 -7184940.82
B&D FOOD CORP BDFC US 14423532 -3506007
PET MANG-RT 4115360Q BZ 246810936.7 -224879124
PET MANG-RT 4115364Q BZ 246810936.7 -224879124
BI CIA SECURITIZ BICS BZ 99573939.68 -140405.614
STEEL - RT STLB1 BZ 21657457.41 -7184940.82
STEEL - RCT ORD STLB9 BZ 21657457.41 -7184940.82
MINUPAR-RT 9314542Q BZ 153054387.9 -2037402.69
MINUPAR-RCT 9314634Q BZ 153054387.9 -2037402.69
CONST LINDEN RT CALI1 BZ 12894010.61 -2805191.16
CONST LINDEN RT CALI2 BZ 12894010.61 -2805191.16
PET MANG-RT 0229249Q BZ 246810936.7 -224879124
PET MANG-RT 0229268Q BZ 246810936.7 -224879124
RECRUSUL - RT 0163579D BZ 41094940.32 -21379158.8
RECRUSUL - RT 0163580D BZ 41094940.32 -21379158.8
RECRUSUL - RCT 0163582D BZ 41094940.32 -21379158.8
RECRUSUL - RCT 0163583D BZ 41094940.32 -21379158.8
PORTX OPERA-GDR PXTPY US 976769402.8 -9407990.35
PORTX OPERACOES PRTX3 BZ 976769402.8 -9407990.35
ALL ORE MINERACA STLB3 BZ 21657457.41 -7184940.82
MINUPAR-RT 0599562D BZ 153054387.9 -2037402.69
MINUPAR-RCT 0599564D BZ 153054387.9 -2037402.69
CONST LINDEN RCT CALI9 BZ 12894010.61 -2805191.16
CONST LINDEN RCT CALI10 BZ 12894010.61 -2805191.16
CONST BETER-PFA COBE5B BZ 31374373.74 -1555470.16
CONST BETER-PF B COBE6B BZ 31374373.74 -1555470.16
PET MANG-RT RPMG2 BZ 246810936.7 -224879124
PET MANG-RT RPMG1 BZ 246810936.7 -224879124
PET MANG-RECEIPT RPMG9 BZ 246810936.7 -224879124
PET MANG-RECEIPT RPMG10 BZ 246810936.7 -224879124
RECRUSUL - RT 0614673D BZ 41094940.32 -21379158.8
RECRUSUL - RT 0614674D BZ 41094940.32 -21379158.8
RECRUSUL - RCT 0614675D BZ 41094940.32 -21379158.8
RECRUSUL - RCT 0614676D BZ 41094940.32 -21379158.8
TEKA-RTS TEKA1 BZ 341291511.1 -388484677
TEKA-RTS TEKA2 BZ 341291511.1 -388484677
TEKA-RCT TEKA9 BZ 341291511.1 -388484677
TEKA-RCT TEKA10 BZ 341291511.1 -388484677
MINUPAR-RTS MNPR1 BZ 153054387.9 -2037402.69
MINUPAR-RCT MNPR9 BZ 153054387.9 -2037402.69
RECRUSUL SA-RTS RCSL1 BZ 41094940.32 -21379158.8
RECRUSUL SA-RTS RCSL2 BZ 41094940.32 -21379158.8
RECRUSUL SA-RCT RCSL9 BZ 41094940.32 -21379158.8
RECRUSUL - RCT RCSL10 BZ 41094940.32 -21379158.8
ARTHUR LANGE ARLA3 BZ 11642255.92 -17154461.9
ARTHUR LANGE SA ALICON BZ 11642255.92 -17154461.9
ARTHUR LANGE-PRF ARLA4 BZ 11642255.92 -17154461.9
ARTHUR LANGE-PRF ALICPN BZ 11642255.92 -17154461.9
ARTHUR LANG-RT C ARLA1 BZ 11642255.92 -17154461.9
ARTHUR LANG-RT P ARLA2 BZ 11642255.92 -17154461.9
ARTHUR LANG-RC C ARLA9 BZ 11642255.92 -17154461.9
ARTHUR LANG-RC P ARLA10 BZ 11642255.92 -17154461.9
ARTHUR LAN-DVD C ARLA11 BZ 11642255.92 -17154461.9
ARTHUR LAN-DVD P ARLA12 BZ 11642255.92 -17154461.9
BOMBRIL BOBR3 BZ 344846084.5 -16082109.1
BOMBRIL CIRIO SA BOBRON BZ 344846084.5 -16082109.1
BOMBRIL-PREF BOBR4 BZ 344846084.5 -16082109.1
BOMBRIL CIRIO-PF BOBRPN BZ 344846084.5 -16082109.1
BOMBRIL SA-ADR BMBPY US 344846084.5 -16082109.1
BOMBRIL SA-ADR BMBBY US 344846084.5 -16082109.1
BUETTNER BUET3 BZ 106502171.9 -24836079.6
BUETTNER SA BUETON BZ 106502171.9 -24836079.6
BUETTNER-PREF BUET4 BZ 106502171.9 -24836079.6
BUETTNER SA-PRF BUETPN BZ 106502171.9 -24836079.6
BUETTNER SA-RTS BUET1 BZ 106502171.9 -24836079.6
BUETTNER SA-RT P BUET2 BZ 106502171.9 -24836079.6
CAF BRASILIA CAFE3 BZ 160938139.9 -149281089
CAFE BRASILIA SA CSBRON BZ 160938139.9 -149281089
CAF BRASILIA-PRF CAFE4 BZ 160938139.9 -149281089
CAFE BRASILIA-PR CSBRPN BZ 160938139.9 -149281089
CHIARELLI SA CCHI3 BZ 11165368.88 -88048393.7
CHIARELLI SA CCHON BZ 11165368.88 -88048393.7
CHIARELLI SA-PRF CCHI4 BZ 11165368.88 -88048393.7
CHIARELLI SA-PRF CCHPN BZ 11165368.88 -88048393.7
IGUACU CAFE IGUA3 BZ 290414420.7 -57976224.4
IGUACU CAFE IGCSON BZ 290414420.7 -57976224.4
IGUACU CAFE IGUCF US 290414420.7 -57976224.4
IGUACU CAFE-PR A IGUA5 BZ 290414420.7 -57976224.4
IGUACU CAFE-PR A IGCSAN BZ 290414420.7 -57976224.4
IGUACU CAFE-PR A IGUAF US 290414420.7 -57976224.4
IGUACU CAFE-PR B IGUA6 BZ 290414420.7 -57976224.4
IGUACU CAFE-PR B IGCSBN BZ 290414420.7 -57976224.4
COBRASMA CBMA3 BZ 85057466.09 -2098881762
COBRASMA SA COBRON BZ 85057466.09 -2098881762
COBRASMA-PREF CBMA4 BZ 85057466.09 -2098881762
COBRASMA SA-PREF COBRPN BZ 85057466.09 -2098881762
CONST A LINDEN CALI3 BZ 12894010.61 -2805191.16
CONST A LINDEN LINDON BZ 12894010.61 -2805191.16
CONST A LIND-PRF CALI4 BZ 12894010.61 -2805191.16
CONST A LIND-PRF LINDPN BZ 12894010.61 -2805191.16
CONST BETER SA 1007Q BZ 31374373.74 -1555470.16
CONST BETER SA COBEON BZ 31374373.74 -1555470.16
CONST BETER SA COBE3B BZ 31374373.74 -1555470.16
CONST BETER-PR A 1008Q BZ 31374373.74 -1555470.16
CONST BETER-PR A COBEAN BZ 31374373.74 -1555470.16
CONST BETER-PF A COBE5 BZ 31374373.74 -1555470.16
CONST BETER-PR B 1009Q BZ 31374373.74 -1555470.16
CONST BETER-PR B COBEBN BZ 31374373.74 -1555470.16
CONST BETER-PF B COBE6 BZ 31374373.74 -1555470.16
CONST BETER-PF A 1COBAN BZ 31374373.74 -1555470.16
CONST BETER-PF B 1COBBN BZ 31374373.74 -1555470.16
CONST BETER SA 1COBON BZ 31374373.74 -1555470.16
D H B DHBI3 BZ 138254321.9 -115344519
DHB IND E COM DHBON BZ 138254321.9 -115344519
D H B-PREF DHBI4 BZ 138254321.9 -115344519
DHB IND E COM-PR DHBPN BZ 138254321.9 -115344519
DOCA INVESTIMENT DOCA3 BZ 272567786.7 -202595760
DOCAS SA DOCAON BZ 272567786.7 -202595760
DOCA INVESTI-PFD DOCA4 BZ 272567786.7 -202595760
DOCAS SA-PREF DOCAPN BZ 272567786.7 -202595760
DOCAS SA-RTS PRF DOCA2 BZ 272567786.7 -202595760
FABRICA RENAUX FTRX3 BZ 71426302.46 -70883547.3
FABRICA RENAUX FRNXON BZ 71426302.46 -70883547.3
FABRICA RENAUX-P FTRX4 BZ 71426302.46 -70883547.3
FABRICA RENAUX-P FRNXPN BZ 71426302.46 -70883547.3
HAGA HAGA3 BZ 20081896.26 -49045924.8
FERRAGENS HAGA HAGAON BZ 20081896.26 -49045924.8
FER HAGA-PREF HAGA4 BZ 20081896.26 -49045924.8
FERRAGENS HAGA-P HAGAPN BZ 20081896.26 -49045924.8
CIMOB PARTIC SA GAFP3 BZ 44047411.7 -45669963.6
CIMOB PARTIC SA GAFON BZ 44047411.7 -45669963.6
CIMOB PART-PREF GAFP4 BZ 44047411.7 -45669963.6
CIMOB PART-PREF GAFPN BZ 44047411.7 -45669963.6
IGB ELETRONICA IGBR3 BZ 412300918.9 -112050649
GRADIENTE ELETR IGBON BZ 412300918.9 -112050649
GRADIENTE-PREF A IGBR5 BZ 412300918.9 -112050649
GRADIENTE EL-PRA IGBAN BZ 412300918.9 -112050649
GRADIENTE-PREF B IGBR6 BZ 412300918.9 -112050649
GRADIENTE EL-PRB IGBBN BZ 412300918.9 -112050649
GRADIENTE-PREF C IGBR7 BZ 412300918.9 -112050649
GRADIENTE EL-PRC IGBCN BZ 412300918.9 -112050649
HOTEIS OTHON SA HOOT3 BZ 260899978.4 -73596837.4
HOTEIS OTHON SA HOTHON BZ 260899978.4 -73596837.4
HOTEIS OTHON-PRF HOOT4 BZ 260899978.4 -73596837.4
HOTEIS OTHON-PRF HOTHPN BZ 260899978.4 -73596837.4
RENAUXVIEW SA TXRX3 BZ 118475706.5 -73851057.6
TEXTEIS RENAUX RENXON BZ 118475706.5 -73851057.6
RENAUXVIEW SA-PF TXRX4 BZ 118475706.5 -73851057.6
TEXTEIS RENAUX RENXPN BZ 118475706.5 -73851057.6
PARMALAT LCSA3 BZ 388720096 -213641152
PARMALAT BRASIL LCSAON BZ 388720096 -213641152
PARMALAT-PREF LCSA4 BZ 388720096 -213641152
PARMALAT BRAS-PF LCSAPN BZ 388720096 -213641152
PARMALAT BR-RT C LCSA5 BZ 388720096 -213641152
PARMALAT BR-RT P LCSA6 BZ 388720096 -213641152
ESTRELA SA ESTR3 BZ 83538938.27 -102223933
ESTRELA SA ESTRON BZ 83538938.27 -102223933
ESTRELA SA-PREF ESTR4 BZ 83538938.27 -102223933
ESTRELA SA-PREF ESTRPN BZ 83538938.27 -102223933
WETZEL SA MWET3 BZ 93591243.36 -7959637.41
WETZEL SA MWELON BZ 93591243.36 -7959637.41
WETZEL SA-PREF MWET4 BZ 93591243.36 -7959637.41
WETZEL SA-PREF MWELPN BZ 93591243.36 -7959637.41
MINUPAR MNPR3 BZ 153054387.9 -2037402.69
MINUPAR SA MNPRON BZ 153054387.9 -2037402.69
MINUPAR-PREF MNPR4 BZ 153054387.9 -2037402.69
MINUPAR SA-PREF MNPRPN BZ 153054387.9 -2037402.69
NORDON MET NORD3 BZ 12234778.35 -30283728.6
NORDON METAL NORDON BZ 12234778.35 -30283728.6
NORDON MET-RTS NORD1 BZ 12234778.35 -30283728.6
NOVA AMERICA SA NOVA3B BZ 21287489 -183535527
NOVA AMERICA SA NOVAON BZ 21287489 -183535527
NOVA AMERICA-PRF NOVA4B BZ 21287489 -183535527
NOVA AMERICA-PRF NOVAPN BZ 21287489 -183535527
NOVA AMERICA-PRF 1NOVPN BZ 21287489 -183535527
NOVA AMERICA SA 1NOVON BZ 21287489 -183535527
RECRUSUL RCSL3 BZ 41094940.32 -21379158.8
RECRUSUL SA RESLON BZ 41094940.32 -21379158.8
RECRUSUL-PREF RCSL4 BZ 41094940.32 -21379158.8
RECRUSUL SA-PREF RESLPN BZ 41094940.32 -21379158.8
PETRO MANGUINHOS RPMG3 BZ 246810936.7 -224879124
PETRO MANGUINHOS MANGON BZ 246810936.7 -224879124
PET MANGUINH-PRF RPMG4 BZ 246810936.7 -224879124
PETRO MANGUIN-PF MANGPN BZ 246810936.7 -224879124
RIMET REEM3 BZ 103098360.9 -185417655
RIMET REEMON BZ 103098360.9 -185417655
RIMET-PREF REEM4 BZ 103098360.9 -185417655
RIMET-PREF REEMPN BZ 103098360.9 -185417655
SANSUY SNSY3 BZ 183826187.4 -133218258
SANSUY SA SNSYON BZ 183826187.4 -133218258
SANSUY-PREF A SNSY5 BZ 183826187.4 -133218258
SANSUY SA-PREF A SNSYAN BZ 183826187.4 -133218258
SANSUY-PREF B SNSY6 BZ 183826187.4 -133218258
SANSUY SA-PREF B SNSYBN BZ 183826187.4 -133218258
BOTUCATU TEXTIL STRP3 BZ 27663604.95 -7174512.03
STAROUP SA STARON BZ 27663604.95 -7174512.03
BOTUCATU-PREF STRP4 BZ 27663604.95 -7174512.03
STAROUP SA-PREF STARPN BZ 27663604.95 -7174512.03
TEKA TEKA3 BZ 341291511.1 -388484677
TEKA TEKAON BZ 341291511.1 -388484677
TEKA-PREF TEKA4 BZ 341291511.1 -388484677
TEKA-PREF TEKAPN BZ 341291511.1 -388484677
TEKA-ADR TKTPY US 341291511.1 -388484677
TEKA-ADR TKTQY US 341291511.1 -388484677
F GUIMARAES FGUI3 BZ 11016542.14 -151840377
FERREIRA GUIMARA FGUION BZ 11016542.14 -151840377
F GUIMARAES-PREF FGUI4 BZ 11016542.14 -151840377
FERREIRA GUIM-PR FGUIPN BZ 11016542.14 -151840377
VARIG SA VAGV3 BZ 966298048 -4695211008
VARIG SA VARGON BZ 966298048 -4695211008
VARIG SA-PREF VAGV4 BZ 966298048 -4695211008
VARIG SA-PREF VARGPN BZ 966298048 -4695211008
BATTISTELLA BTTL3 BZ 246036232.2 -51251360.7
BATTISTELLA-PREF BTTL4 BZ 246036232.2 -51251360.7
SAUIPE SA PSEGON BZ 18005034.37 -5223527.47
SAUIPE PSEG3 BZ 18005034.37 -5223527.47
SAUIPE SA-PREF PSEGPN BZ 18005034.37 -5223527.47
SAUIPE-PREF PSEG4 BZ 18005034.37 -5223527.47
CIA PETROLIFERA MRLM3B BZ 377602195.2 -3014291.72
CIA PETROLIF-PRF MRLM4B BZ 377602195.2 -3014291.72
CIA PETROLIFERA 1CPMON BZ 377602195.2 -3014291.72
CIA PETROLIF-PRF 1CPMPN BZ 377602195.2 -3014291.72
LATTENO FOOD COR LATF US 14423532 -3506007
VARIG PART EM TR VPTA3 BZ 49432124.18 -399290396
VARIG PART EM-PR VPTA4 BZ 49432124.18 -399290396
VARIG PART EM SE VPSC3 BZ 83017828.56 -495721700
VARIG PART EM-PR VPSC4 BZ 83017828.56 -495721700
COLOMBIA
---------
LA POLAR SA NUEVAPOL CI 623197996 -605184456
PUYEHUE RIGHT PUYEHUOS CI 24251713.88 -3390038.99
LA POLAR-RT LAPOLARO CI 623197996 -605184456
LA POLAR-RT LAPOLAOS CI 623197996 -605184456
LA POLAR SA LAPOLAR CI 623197996 -605184456
PUYEHUE PUYEH CI 24251713.88 -3390038.99
***********
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., Washington, D.C.,
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 2013. 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$775 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 A. Chapman at 215-945-7000 or Nina Novak at
202-241-8200.
* * * End of Transmission * * *