/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130215.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 Friday, February 15, 2013, Vol. 14, No. 33 Headlines A T I G U A & B A R B U D A * ANTIGUA & BARBUDA: US Court Dismisses US$750,000 Lawsuit A R G E N T I N A AGROPECUARIA SANTA: Creditors' Proofs of Debt Due Feb. 19 CELESIA SRL: Creditors' Proofs of Debt Due Feb. 28 PREMIUM BEEF: Creditors' Proofs of Debt Due March 28 UXSA SRL: Creditors' Proofs of Debt Due Feb. 20 C A Y M A N I S L A N D S BPSA FONDS: Shareholders Receive Wind-Up Report CHARTREUSE (CAYMAN): Shareholder Receives Wind-Up Report CIL CLAIRVOYANCE: Shareholder Receives Wind-Up Report CIL INDEA: Shareholder Receives Wind-Up Report CUAM GREATER: Shareholder Receives Wind-Up Report CUAM GREATER CHINA: Shareholder Receives Wind-Up Report DVA MASTER: Shareholders Receive Wind-Up Report FIRST ENGINEERING: Shareholders Receive Wind-Up Report FIRST ENGINEERING CAYCO: Shareholders Receive Wind-Up Report GARRISON CAPITAL: Shareholder Receives Wind-Up Report HANGER STRAIGHT: Shareholder Receives Wind-Up Report HARBOUR LITIGATION: Shareholders Receive Wind-Up Report HOT DESERT: Shareholders Receive Wind-Up Report IMAGE STORE: Shareholders Receive Wind-Up Report KEYCORP OFFSHORE: Shareholder Receives Wind-Up Report MARCO POLO: Shareholders Receive Wind-Up Report NATURALLY CAYMAN: Shareholders Receive Wind-Up Report RENAISSANCE COMMODITY: Shareholders Receive Wind-Up Report STRATEGIC OPPORTUNITIES: Shareholders Receive Wind-Up Report UNIVERSITY COMMUNITY: Shareholders Receive Wind-Up Report C H I L E INVERSIONES ALSACIA: Fitch Puts Bonds Rating on Watch Negative C O L O M B I A LATAM TRUST: Fitch Affirms 'BB+' Rating on CLP5.1MM Notes J A M A I C A NCB: To Close Red Hills Road Branch After 42 Years V E N E Z U E L A BANCO PROVINCIAL: Fitch Affirms 'B+' Long-Term IDR; Outlook Neg. X X X X X X X X * LATAM: CDB Head Warns of 'Fiscal Cliff' Facing Countries - - - - - ============================= A T I G U A & B A R B U D A ============================= * ANTIGUA & BARBUDA: US Court Dismisses US$750,000 Lawsuit ---------------------------------------------------------- Jamaica Gleaner reports that a United States federal district court has dismissed a US$750,000 breach of contract lawsuit against the Antigua & Barbuda government. The suit was filed on July 19, 2010, by Dan Abraham Sarfati, the son of Maurice Sarfati, of Roydan Limited regarding the payment of three promissory notes issued to the company and signed by then agriculture minister Hilroy Humphreys in June 1990 and guaranteed by the Ministry of Finance, according to Jamaica Gleaner. Roydan Limited is based in Antigua. Jamaica Gleaner reports that Dan Sarfati, who was eight years old in 1990, alleged that the monies had never been repaid, and that because of "threats and coercion" made to his father by people associated with the then government, the senior Sarfati became fearful for his safety and made no legal attempt then to recover the funds. A statement by the Antigua government said it engaged the services of two US-based Antigua-born lawyers to act on its behalf in the matter and that they had filed a motion to dismiss the claim on the grounds that the lawsuit was barred by the statute of limitations, "notwithstanding the alleged threats which were pleaded were baseless," Jamaica Gleaner notes. The report relates that they also argued that the issue of the promissory notes "did not constitute a commercial activity by the government because Hilroy Humphreys had no legal authority to issue or sign the promissory notes". Antigua Attorney General Justin Simon said he was happy with the outcome of the case, noting that the potential financial disbursement would have been "an enormous debt on the government's finances, particularly at this time of economic challenge, the report notes. "Strangely, there was little in the files at the Ministry of Agriculture and Lands or the Ministry of Legal Affairs on the matter," the report quoted Mr. Simon as saying. ================= A R G E N T I N A ================= AGROPECUARIA SANTA: Creditors' Proofs of Debt Due Feb. 19 --------------------------------------------------------- Sergio Hernan Diego Gomez Marti, the court-appointed trustee for Agropecuaria Santa Catalina SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until Feb. 19, 2013. Mr. Marti will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 9 in Buenos Aires, with the assistance of Clerk No. 18, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Sergio Hernan Diego Gomez Marti Viamonte 1546 Argentina CELESIA SRL: Creditors' Proofs of Debt Due Feb. 28 -------------------------------------------------- Juan Emilio Cavallieri, the court-appointed trustee for Celesia SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until Feb. 28, 2013. Mr. Cavallieri will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 6 in Buenos Aires, with the assistance of Clerk No. 11, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Juan Emilio Cavallieri Avenida Cordoba 904 Argentina PREMIUM BEEF: Creditors' Proofs of Debt Due March 28 ---------------------------------------------------- Diana Ines Panitch, the court-appointed trustee for Premium Beef SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until March 28, 2013. Ms. Panitch will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 22 in Buenos Aires, with the assistance of Clerk No. 44, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Diana Ines Panitch Avenida Corrientes 1250 Argentina UXSA SRL: Creditors' Proofs of Debt Due Feb. 20 ----------------------------------------------- Juan Roque Treppo, the court-appointed trustee for Uxsa SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until Feb. 20, 2013. Mr. Treppo will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 21 in Buenos Aires, with the assistance of Clerk No. 41, will determine if the verified claims are admissible, taking into account the trustee's opinion, and the objections and challenges that will be raised by the company and its creditors. The Trustee can be reached at: Juan Roque Treppo Sarmiento 1183 Argentina ========================== C A Y M A N I S L A N D S ========================== BPSA FONDS: Shareholders Receive Wind-Up Report ----------------------------------------------- On Dec. 31, 2012, the shareholders of BPSA Fonds received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Michael Penner c/o Rachel Williams Deloitte & Touche Citrus Grove Building, 4th Floor Goring Avenue, George Town KY1-1109 Cayman Islands Telephone: +1 (345) 814 3302 Facsimile: +1 (345) 949 8258 CHARTREUSE (CAYMAN): Shareholder Receives Wind-Up Report -------------------------------------------------------- On Dec. 24, 2012, the sole shareholder of Chartreuse (Cayman) Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: K.D. Blake c/o Andrew Edwards Telephone: 345-815-2608/345-949-4800 Facsimile: 345-949-7164 P.O. Box 493 Grand Cayman KY1-1106 Cayman Islands CIL CLAIRVOYANCE: Shareholder Receives Wind-Up Report ----------------------------------------------------- On Dec. 28, 2012, the shareholder of CIL Clairvoyance Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Private Bank & Trust (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands CIL INDEA: Shareholder Receives Wind-Up Report ---------------------------------------------- On Dec. 28, 2012, the shareholder of CIL Indea Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Private Bank & Trust (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands CUAM GREATER: Shareholder Receives Wind-Up Report ------------------------------------------------- On Dec. 24, 2012, the sole shareholder of Cuam Greater China Opportunities Absolute Return Fund received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Qing Wan 2701, One IFC 1 Harbour View Street Central Hong Kong Telephone: +852 3983 5658 CUAM GREATER CHINA: Shareholder Receives Wind-Up Report ------------------------------------------------------- On Dec. 24, 2012, the sole shareholder of CUAM Greater China Opportunities Absolute Return Master Fund received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Qing Wan 2701, One IFC 1 Harbour View Street Central Hong Kong Telephone: +852 3983 5658 DVA MASTER: Shareholders Receive Wind-Up Report ----------------------------------------------- On Dec. 31, 2012, the shareholders of DVA Master Fund Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stuart Sybersma Grant Hiley, Deloitte & Touche P.O Box 1787 Grand Cayman KY1-1109 Cayman Islands Telephone: +1(345) 814 2353 Facsimile: +1(345) 949 8258 FIRST ENGINEERING: Shareholders Receive Wind-Up Report ------------------------------------------------------ On Jan. 3, 2013, the shareholders of First Engineering Bidco Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Cosimo Borrelli Jason Kardachi One Raffles Place Tower 2, #10-62 Singapore 048616 Telephone: (65) 6603 0795 FIRST ENGINEERING CAYCO: Shareholders Receive Wind-Up Report ------------------------------------------------------------ On Jan. 3, 2013, the shareholders of First Engineering Cayco Limited received the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Cosimo Borrelli Jason Kardachi One Raffles Place Tower 2, #10-62 Singapore 048616 Telephone: (65) 6603 0795 GARRISON CAPITAL: Shareholder Receives Wind-Up Report ----------------------------------------------------- On Jan. 4, 2013, the shareholder of Garrison Capital CLO Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 HANGER STRAIGHT: Shareholder Receives Wind-Up Report ---------------------------------------------------- On Jan. 4, 2013, the shareholder of Hanger Straight Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 HARBOUR LITIGATION: Shareholders Receive Wind-Up Report ------------------------------------------------------- On Dec. 27, 2012, the shareholders of Harbour Litigation Investments Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Management Limited Landmark Square, 1st Floor 64 Earth Close, West Bay Beach P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands Facsimile: 1 345 769-9351 HOT DESERT: Shareholders Receive Wind-Up Report ----------------------------------------------- On Dec. 24, 2012, the shareholders of Hot Desert Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Yuliya Sasina-Yates c/o Andrea Aegerter Telephone: +41 22 319 01 76 Facsimile: +41 22 319 01 02 13 Quai de L'lle, PO Box 5511 1211 Geneva Switzerland IMAGE STORE: Shareholders Receive Wind-Up Report ------------------------------------------------ On Dec. 28, 2012, the shareholders of The Image Store Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Brynley Davies Wardour Management Services Limited Telephone: (345) 945-3301 Facsimile: (345) 945-3302 P.O. Box 10147 Grand Cayman KY1-1002 Cayman Islands KEYCORP OFFSHORE: Shareholder Receives Wind-Up Report ----------------------------------------------------- On Jan. 4, 2013, the shareholder of Keycorp Offshore Investments Company, Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 MARCO POLO: Shareholders Receive Wind-Up Report ----------------------------------------------- On Dec. 27, 2012, the shareholders of Marco Polo Pure Pan-China Fund received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Marco Polo Pure Asset Management (Cayman Islands) Limited P.O. Box 309, Ugland House Grand Cayman, KY1-1104 Cayman Islands NATURALLY CAYMAN: Shareholders Receive Wind-Up Report ----------------------------------------------------- On Jan. 9, 2013, the shareholders of Naturally Cayman Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stephen Herron P.O. Box 1004 Grand Cayman KY1-1503 Cayman Islands Telephone: 345-916-0200 RENAISSANCE COMMODITY: Shareholders Receive Wind-Up Report ---------------------------------------------------------- On Dec. 27, 2012, the shareholders of Renaissance Commodity Plus Fund received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Appleby Trust (Cayman) Ltd. Clifton House 75 Fort Street Grand Cayman Cayman Islands STRATEGIC OPPORTUNITIES: Shareholders Receive Wind-Up Report ------------------------------------------------------------ On Dec. 27, 2012, the sole shareholder of The Strategic Opportunities Fund Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Michael Lubin Telephone: (345) 815-1793 Facsimile: (345) 949-9877 UNIVERSITY COMMUNITY: Shareholders Receive Wind-Up Report --------------------------------------------------------- On Dec. 28, 2012, the shareholders of University Community Health Insurance Company SPC, Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ian Stokoe c/o Aaron Gardner Telephone: (345) 914 8655 Facsimile: (345) 945 4237 PO Box 258 Grand Cayman KY1-1104 Cayman Islands ========= C H I L E ========= INVERSIONES ALSACIA: Fitch Puts Bonds Rating on Watch Negative -------------------------------------------------------------- Fitch Ratings places the 'BB' rating on Inversiones Alsacia's USD464 million senior secured bonds due in 2018 on Rating Watch Negative. The negative action reflects the impact of a combination of events occurred in 2012 that may adversely affect the company's future operational and financial performance. The rating will be reviewed within the next six months, in order to assess the progress on the concerning issues that triggered this rating action. KEY RATING DRIVERS -- INCREASED DEPENDENCE ON DEMAND: The Operating Contract amendment of May 2012 heightened the project's risk profile by significantly increasing the linkage between passenger demand and revenue levels. In the last two years demand has performed below expectations. The contractual amendment includes a restated economic equilibrium mechanism that partially mitigates such risk by compensating to some extent, demand declines over 3%, among others. However, compensation payments are received several months after the occurrence of a negative impact in revenue, stressing the project's liquidity. -- HIGHER OPERATIONAL COMPLEXITY: Compared to other availability- based projects, bus operations are logistically complex. The incorporation of additional bus routes has heightened operational complexity. Synergies coming from Alsacia and Express' operational merger have taken longer than expected to materialize. In 2012, operational and administrative cost was largely increased mainly due to a series of one-time events. The risk of a continued cost escalation in the coming years is partially mitigated by the indexed pass-through of major cost items that is present in the formula to calculate revenues. -- ADEQUATE DEBT STRUCTURE: Tight covenants for equity distribution and additional leverage, fixed interest rate, a cross-currency swap contracted with highly-rated institutions, and a 6-month debt service reserve account. -- WEAKENING COVERAGES: Although coverage for the first three payments surpassed Fitch's base projection, the amended formula to calculate revenues paired with the cost increase during 2012 tightened financial coverage ratios to the point that the use of reserve funds is imminent. Debt coverage performance for the coming payments is highly uncertain given that new a negotiation round to discuss the contractual terms with the Government is scheduled for April 2013. -- CAPEX RESERVES ARE BELOW INDUSTRY STARDARDS: In 2012, ALSACIA made important investments in overhauling a portion of its bus fleet. However, given such investment and the fact that current fleet has a remaining life of 10 years average, Fitch does not foresee infrastructure renewal risk as material. KEY RATING SENSITIVITIES -- New contractual terms following the April 2013 negotiations with the Chilean Ministry of Transportation and Telecommunications (MTT) that could lead to a negative impact on the company's operations and cash available for debt service. -- Liquidity reduction resulting in DSCR under 1.00 times (x), which would imply the Debt Service Reserve Account (DSRA) was not fulfilled, but used again. -- End of governmental subsidy could negatively impact the system's and the company's financial position. SECURITY The notes are secured by a first lien interest of total revenues and contract rights, as well as all assets owned by Alsacia and Express, excluding a bus terminal located in Huachuraba. CREDIT UPDATE During 2012, with information as of the third quarter, Alsacia's expenses grew higher than revenues, resulting in a 24% contraction of Ebitda. As a result, resources from the DSRA will be needed to partially fund the coming debt payment scheduled for February 2013. Lower-than-expected revenue growth, albeit improvements to evasion control and operation indexes, came basically from the restatement of the formula as established in the Operational Agreements signed between the operators and the MTT and effective starting May 1, 2012. Revenues are now more linked and sensitive to demand performance, which has been contracting since the end of 2011. In addition, the contractual amendments also include that those transfers across the services of a single operator will now account as one passenger only. Demand for Alsacia and Express slightly recovered in the last quarter of the year, and their performance generally follows that of the whole Transantiago system. According to Alsacia, lower demand was mainly driven by the numerous holidays in Chile during 2012, the greater competition from the Metro lines, and an increased use of automobiles. Although the revenue volatility has potentially increased, the Operating Agreement comprises two economic equilibrium mechanisms to offset the companies for demand losses over 3%. The mechanisms include annual compensation payments and biannual adjustments to the amount the MTT pays per passenger using the operators' services. The first compensation payment is scheduled for May 2013, and the company expects to partially use its proceeds to replenish the DSRA. The annual frequency of these payments is likely to further stress the project's cash flows. In addition to the contractual compensation mechanisms, in 2012 the MTT declared its intention to reimburse some of the Transantiago operators for the Technical-Operative Reserve they contributed with in 2005. Alsacia already received CLP 9,090 million, while Express will be able to receive CLP 29,432 million in as much as five installments between January 2014 and October 2018. On the expense side, in 2012 the company faced a series of extraordinary one-time costs, such as: a heavy bus overhaul program that was expected in a later period, the temporary outsourcing of the recently taken over Feeder D, the external advisory services needed to restructure the operating plans, and the restructuring of the Union Agreements that were restated and extended for three and four more years. Some of the additional and recurring expenditures are the engagement of 400 inspectors in charge of improving evasion control, and supplementary drivers and maintenance personnel to properly operate Feeder D. Since most of the deviation was due to the single-time incidents, it is Fitch's belief that costs will normalize within the few coming months. Regarding the system's subsidy that ends in 2014, aiming to stop fares' escalation, in 2012 the Government started the process to obtain a subsidy of USD 750 million per year, to be approved until 2022. The process is at a very advanced stage, and expected to be resolved by the first semester of 2013. While the subsidy termination is a potential risk, Fitch considers it is very unlike to occur, given the fact that Transantiago is a top-priority project for the country, as has been demonstrated in the past. Recently, the MTT announced in April 2013 there will be another round of negotiations with the operators for possibly re-adjusting the Operational Contracts. The direction and result of such discussions are still unknown but are likely to strongly determine Alsacia's financial performance. Fitch believes that, if the current terms of the Operation Agreement continue and demand does not recover in the short term, Alsacia will have increased pressure to keep costs controlled at or under budgeted levels, in order to reach at least the 22% Ebitda averaged in 2008-2011, and still be able to face its increasing debt obligations. Fitch Base Case assumed demand stays at current (2012) level while cost increases 3% over budget to reach 22% Ebitda average over the 2013-2018 projected horizon. DSCR results in 1.03x minimum and 1.10x average. Fitch Stress Case considered demand contracts 5% in 2013 and then stays stable, while cost increases 5% over budget to reach 20% Ebitda average. DSCR results in 0.93x minimum and 1.02x average. Under this scenario, funds from the DSRA have to be called several times. Alsacia and Express are two of the top bus concessionaires of the Transantiago System, which provides mass urban bus/metro transportation services to the City of Santiago, in Chile since 2005, and is regulated by the MTT. The transaction consisted of the acquisition by Alsacia of the remaining shares of Express, and the refinancing of all the existing debt of both concessionaires. =============== C O L O M B I A =============== LATAM TRUST: Fitch Affirms 'BB+' Rating on CLP5.1MM Notes --------------------------------------------------------- Fitch Ratings has affirmed the notes issued by Latam Trust series 2007-105, removed the Negative Watch status and assigned a Stable Outlook as follows: -- CLP5,136,000 credit-linked notes 'BB+sf'; Outlook Stable. The rating action is based on the rating of the reference entity, Endesa, S.A. (rated 'BBB+'; Outlook Negative by Fitch). Fitch affirmed the rating of Endesa and resolved its Negative Watch status on Jan. 16, 2013. Fitch monitors the performance of the underlying risk-presenting entities and adjusts the rating accordingly through application of its current credit-linked note (CLN) criteria, 'Global Rating Criteria for Single- and Multi-Name Credit-Linked Notes' dated Feb. 22, 2012. Fitch's rating of Latam 2007-105 is credit-linked to the rating of the qualified investment, Merrill Lynch & Co., Inc. subordinated notes (ISIN XS0267827169, rated 'BBB' by Fitch), and the reference entity. Since the subordinated notes are considered the highest risk-presenting entity, the Rating Outlook assigned to Latam 2007- 105 reflects the Outlook on the issuer of the subordinated notes, Merrill Lynch & Co., Inc. (rated 'A'; Outlook Stable by Fitch). Latam 2007-105 (the issuer) is a single-name CLN structure referencing Endesa, S.A. via a Credit Default Swap (CDS) between the issuer and the swap counterparty, Merrill Lynch Capital Services (MLCS), which is guaranteed by Merrill Lynch & Co., Inc. The CDS is funded by subordinated notes (the qualified investment) issued by Merrill Lynch & Co., Inc. The rating of the notes addresses the likelihood that investors will receive full and timely payments of interest and repayment of principal by the legal final maturity date according to the terms of the notes. Payments of interest and principal will be made in U.S. dollar (USD) amounts adjusted according to both the prevailing value of the Unidad de Fomento (UF) and the CLP/USD exchange rate. ============= J A M A I C A ============= NCB: To Close Red Hills Road Branch After 42 Years -------------------------------------------------- Julian Richardson at Jamaica Observer reports that National Commercial Bank will shut down its Red Hills Road branch in March after more than four decades in operation on the St Andrew strip. The financial institution said it will consolidate the outlet, located inside the Red Hills Mall shopping complex, with its Half- Way-Tree branch, according to Jamaica Observer. The report relates that the NCB automated teller machine (ATM), however, will remain at the entrance to the shopping halls at the mall. Jamaica Observer notes that NCB Manager of Group Corporate Communications Belinda Williams said that the move is "in order to achieve greater operating efficiency." However, Jamaica Observer says that the firm's exit from Red Hills Road is another blow to the once commercially vibrant thoroughfare that has become a shadow of its former self, milked of its appeal by criminal activities and feuding politically-aligned gangs over the years. NCB did not disclose how many workers are employed at the Red Hills Road branch, but Williams noted that "staff will be redeployed throughout the NCB network," the report discloses. The NCB Red Hills Road branch was first established in 1971, but was moved to its present spot inside the complex in 1976, said Williams, who noted that the location is owned by the financial institution. ================= V E N E Z U E L A ================= BANCO PROVINCIAL: Fitch Affirms 'B+' Long-Term IDR; Outlook Neg. ---------------------------------------------------------------- Fitch Ratings has affirmed Venezuela-based Banco Provincial's long-term Issuer Default Rating (IDR) at 'B+' with a Negative Rating Outlook. Rating Action Rationale Provincial's financial profile, as reflected in its Viability Rating (VR), drives the bank's long-term IDR. Provincial's IDRs are at the same level as Fitch's Sovereign ratings for Venezuela (foreign and local currency IDRs 'B+'; Outlook Negative). Fitch has affirmed Provincial's VR and IDRs as the bank remains well positioned to deliver strong financial results (even when adjusting for inflation) despite the high degree of government intervention in the banking business. In Fitch's opinion, strong risk policies bolstered by Provincial's largest shareholder, Spain's Banco Bilbao Vizcaya Argentaria, combined with the bank's vast knowledge of the Venezuelan market will continue to underpin the resilience of the bank's solid credit profile, even with the expected weakening of the operating environment this year. Fitch believes that the shareholders' willingness to provide support should it be required is possible, though it cannot be relied upon due to the governments interference with the banking system, which is what results in Provincial's Support rating of '5'. Despite Provincial's systemic importance, its support floor of 'No Floor' (NF) reflects Venezuela's speculative-grade rating, and the government's limited willingness and capacity to provide support. SENSITIVITIES/RATING DRIVERS - IDRS, VR, AND NATIONAL RATINGS Provincial's ratings reflect its strong franchise and financial profile. The ratings also incorporate the bank's conservative risk management and operational support from BBVA. Despite the bank's strong credit profile, the ratings are constrained by the sovereign due to the negative effects of government control over the financial sector and the broader economy (reflected in Venezuela's 'B+'; Negative Outlook). Provincial continues to be one of the most profitable private sector banks in Venezuela due to its stable and ample net interest margin, controlled credit costs and better efficiency. The bank's ROAA ratio reached a historic peak of 5.85% (not adjusted for inflation) at year-end 2012, comparing favorably to both domestic (private sector universal banks) and international (emerging market commercial banks with a VR of 'b-/b/b+') peers. Given the recent currency devaluation, Fitch expects lower credit growth, as well as higher credit costs and operational expenses to pressure earnings in 2013. Nevertheless, Provincial is likely to maintain its strong financial performance relative to peers, even on an inflation-adjusted basis. Low impaired loans and charge-offs and ample loan loss reserve coverage continues to support the bank's stellar asset quality relative to peers. The bank's loan portfolio is adequately diversified given its leading position in most business segments. Although Fitch expects asset quality to deteriorate in the short term due to the challenging economic environment, Provincial's indicators should remain among the best relative to domestic and international peers. Access to ample retail funding is a key strength of the bank in terms of funding costs and liquidity management as well as a tool to leverage its growth through cross-selling from its vast customer base. Excess liquidity continued to drive robust deposit growth in 2012, reducing Provincial's loans/customer deposits ratio to 59% at year-end. Fitch expects the bank's loan portfolio to remain fully funded by deposits over the medium term. Moderate cash dividends limited by local regulation and high profits sustained Provincial's equity growth at almost the same level as asset growth. As a result, the bank's Fitch core capital/adjusted weighted risks ratio decreased only slightly to 17.2% at YE2012 from 17.5% at YE2011. Nevertheless, Provincial's capitalization still compares favorably to both domestic and international peers, a trend Fitch expects to continue in 2013. SENSITIVITIES/RATING DRIVERS - SUPPORT RATING AND SUPPORT RATING FLOOR There is limited upside to the bank's Support rating and Support Floor over the medium term given the sovereign's current ratings and Outlooks and the government's propensity to intervene in the banking business and overall private sector activities. Provincial is Venezuela's third largest bank, with a 12.2% market share in terms of total assets at Dec. 31, 2012. Spain's BBVA controls about 55.2% of Provincial's equity and Grupo Polar is the second largest shareholder with a 26.5% stake. Fitch has affirmed these ratings: -- Long-term foreign and local currency IDRs at 'B+'; Outlook Negative; -- Short-term foreign and local currency ratings at 'B'; -- Viability at 'b+'; -- Support at 5; -- Support Floor NF; -- Long-term national-scale rating at 'AA+(ven)'; -- Short-term national-scale rating at 'F1+(ven)'. =============== X X X X X X X X =============== * LATAM: CDB Head Warns of 'Fiscal Cliff' Facing Countries ---------------------------------------------------------- RJR News reports that Dr .Warren Smith, president of the Caribbean Development Bank (CDB), has warned Jamaica and six other member countries of the institution to avoid facing their own "fiscal cliff" - as happened to the US - by moving vigorously to reduce their mounting debt stock. The other countries are Trinidad and Tobago, Barbados, Grenada, St Kitts and Nevis, and Grenada, according to RJR News. The report relates that the CDB boss said the debt levels of Jamaica and other countries have become unsustainable. And, Mr. Smith emphasized, anchoring investor confidence, both at home and abroad, will require governments to take corrective policy action, RJR News notes. The report relates that as analyzed by the CDB, the fiscal policy agenda of the seven economies identified with unsustainable debt levels must include measures that tackle improvements in tax yields by reassessing the range of exemptions and concessions offered. Jamaica is currently struggling with $1.7 trillion in debt, the report discloses. *********** 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 * * *