/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130429.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, April 29, 2013, Vol. 14, No. 83 Headlines B R A Z I L BRASKEM SA: Remains at Risk of Rating Downgrade, Fitch Says WPE INTERNATIONAL: Fitch Assigns 'B+' Rating to Guaranteed Notes C A Y M A N I S L A N D S ABSOLUTE EAGLES: Shareholders Receive Wind-Up Report DB CONCERTO: Shareholders Receive Wind-Up Report DB CONCERTO (LP): Shareholders Receive Wind-Up Report DB SIRIUS: Shareholder Receives Wind-Up Report DB TWEED: Shareholder Receives Wind-Up Report ERJF ONE: Shareholders Receive Wind-Up Report FIRST EAGLE: Shareholders Receive Wind-Up Report GOLDENTREE CLO: Shareholder Receives Wind-Up Report GOLDENTREE CLO OFFSHORE: Shareholder Receives Wind-Up Report GRAND CAYMAN: Shareholder Receives Wind-Up Report IPSWICH VI-A: Shareholder Receives Wind-Up Report JSKY TECHNOLOGY: Members Receive Wind-Up Report KINGS LIMITED: Shareholders Receive Wind-Up Report LINCOLN CORPORATION: Sole Member Receives Wind-Up Report RAB EUROPE: Shareholders Receive Wind-Up Report SIGNUM IV: Shareholders Receive Wind-Up Report SIGNUM PLATINUM: Shareholders Receive Wind-Up Report ZAIS MATRIX III-A: Shareholders Receive Wind-Up Report ZAIS MATRIX III-B: Shareholders Receive Wind-Up Report ZAIS MATRIX III-C: Shareholders Receive Wind-Up Report J A M A I C A * JAMAICA: Losing Millions Due to Slow Harmony Cove Development M E X I C O CORPORACION GEO: Fitch Cuts Issuer Default Rating to 'C' DESARROLLADORA HOMEX: Moody's Downgrades Sr. Debt Rating to B2 DESARROLLADORA HOMEX: Moody's Lowers Nat'l. Debt Rating to Ba1.mx MAXCOM TELECOMUNICACIONES: Considers Filing for Bankruptcy * MEXICO: Moody's Assign Ba2 Rating to San Luis Colorado P A N A M A INVERSIONES FINANCIERAS: Fitch Assigns 'B' Issuer Default Ratings X X X X X X X X * BOND PRICING: For the Week April 22 to April 26, 2013 - - - - - =========== B R A Z I L =========== BRASKEM SA: Remains at Risk of Rating Downgrade, Fitch Says ----------------------------------------------------------- Recent initiatives announced by the Brazilian government to support the competitiveness of the local chemical industry through lower taxes should marginally improve the profitability and operating cash flow generation of Braskem. Nevertheless, Fitch believes the expected change in Braskem's cash flow will not be sufficient to materially lower the company's leverage, which is high for the rating category. As a result, Braskem remains at risk of a rating downgrade in the near-to-medium term if a deleverage does not occur. Braskem has not been able to reduce its leverage to levels expected by Fitch. In Fitch's base case for the current rating category, it had factored in non-core asset sales of about BRL1.5 billion by Braskem by the end of 2012 and the first quarter of 2013, which would have lowered Braskem's leverage to below 3.5x. As of March 31, 2013, Braskem had sold only BRL652 million of assets. Most of the proceeds from this sale will be received in the second half of 2013. Fitch had also incorporated in its base case rating the scenario that Braskem's operating cash flow would improve in 2013 as a result of these anticipated government incentives together with those announced at the end of 2012. The 2012 measures included the termination of tax incentives that states were giving to imported products. Combined, divestments of BRL1.5 billion plus increasing cash flow was anticipated to lower Braskem's net leverage to about 3.0x. As per Fitch's calculation, the announced tax reduction of 4.6% on raw materials such as naptha, which combined represent 52% of Braskem's cost of goods sold (COGS), along with the 9.25% tax reduction for propylene, which represents an additional 8% of COGS, should increase operating cash flow by about BRL650 million in 2013 and BRL1 billion annually in 2014 and 2015. While positive, these improvements on a stand-alone basis would not be sufficient to reduce leverage to 3.0x or below by the end of 2013. On a pro forma basis, considering the cash flow increase due to the tax reductions and the receipt of BRL652 million from the asset sale, Braskem's net leverage should be around 3.6x by the end of 2013. Absent other assets sales or operation improvements, the probability of a future downgrade for Braskem still remains. Fitch currently rates Braskem as follows: Braskem S.A. -- Long-term foreign currency IDR 'BBB-'; -- Long-term local currency IDR 'BBB-'; -- Long-term national rating 'AA+(bra)'; -- Unsecured senior notes due 2014 and 2017 'BBB-'. Braskem International -- Long-term foreign currency IDR 'BBB-'; -- Unsecured senior notes due in 2015 'BBB-'. Braskem Finance Limited -- Long-term foreign currency IDR 'BBB-'; -- Unsecured senior notes due 2018, 2020 and 2021 'BBB-'; -- Unsecured senior perpetual bonds 'BBB-'. Braskem America Finance Company -- Long-term local and foreign currency IDR 'BBB-'; -- Unsecured senior notes due 2041 'BBB-'. The Rating Outlook is Negative. WPE INTERNATIONAL: Fitch Assigns 'B+' Rating to Guaranteed Notes ---------------------------------------------------------------- Fitch Ratings has assigned 'B+(exp)'/'RR4' to WPE International Coorperatief's proposed guaranteed notes due in 2018. These notes will be irrevocably and unconditionally guaranteed by Industrias Metalurgicas Pescarmona (IMPSA) and WPE on a senior unsecured basis. Proceeds are expected to be used to refinance shorter maturity indebtedness. Key Rating Drivers WPE International is a direct subsidiary of WPE, which in turn is wholly owned by IMPSA. The rating of the notes reflects the creditworthiness of the guarantors. Fitch rates IMPSA 'B+', with a Stable Outlook, while WPE is a fully owned subsidiary of IMPSA with strong operating, strategic and financial ties to its parent company. IMPSA's 'B+' ratings reflect the positive trend for the company's long-term business fundamentals due to sustained global demand for hydro and wind power generating equipment. They also incorporate the company's growing business presence in Brazil and its sizeable backlog, which provides some certainty to the company's cash generation over the medium term. Balanced against these strengths are the company's high leverage, aggressive capital expenditure program and its backlog concentration in a few large projects in developing countries. A sudden downturn in key markets would negatively impact IMPSA's ability to develop new projects. IMPSA's operations have a significant concentration in Brazil. For the fiscal year ended (FYE) December 2012, 45% of revenues and 82% of the company's backlog by country manufacturing was concentrated in Brazil. The growth of the company's business in Brazil has reduced IMPSA's exposure to more volatile markets such as Argentina and has increased its access to multiple funding sources. This has reduced concerns about IMPSA's need to finance its working capital needs in Argentina should trading conditions in that market deteriorate. Additionally, it has enabled the company's foreign currency rating to exceed the 'B-' country ceiling of Argentina. Going forward, it is expected that over 50% of IMPSA's total revenues will be generated by its Brazilian production facilities. At December 2012, IMPSA's backlog was USD4 billion with 78% in wind manufacturing and 74% in projects with third parties. Given the long-term production cycle of IMPSA's developments (usually in the range of four years for hydro and 12-18 months for wind farms), this backlog level provides some certainty to the company's cash generation in the medium term. Existing power purchase agreements (PPAs) also contribute to the company's future revenue generating ability. IMPSA has installed its second factory in Brazil, doubling its hydro capacity. The company's free cash flow (FCF) is anticipated to remain negative during 2013 because of capital expenditures and growing working capital needs. Investments in the construction of wind farms are estimated at USD252 million for FYE 2013. Much of the cash deficit will be funded with non-recourse project financing to develop wind farm projects in Brazil. Fitch expects IMPSA's total recourse debt-to-LTM EBITDA ratio to remain around 4.0x, and decrease in accordance with the successful execution of the project backlog and the cash flow generation of the new energy projects in operation. As of Dec. 31, 2012, IMPSA had USD1.436 million of total debt, of which USD418 million was structured as project finance. The total recourse debt-to-EBITDA ratio was 4.0x. As of December 2012, IMPSA had USD68 million of cash and marketable securities, covering short-term debt by 20%. The company is expected to meet its upcoming debt obligations with a mix of cash from operations and the rollover of existing debt. Rating Sensitivity The company's ratings could be downgraded or a Negative Outlook could be assigned if non-recourse financing increases above levels anticipated by Fitch. Additionally, any material performance problems that threaten future projects and cash flow, or a failure to comply with the terms for the operation of the wind farms (for which long-term PPAs have been signed with Eletrobras and the CCEE and are financed by BNDES) could also result in a downgrade or Negative Outlook. ========================== C A Y M A N I S L A N D S ========================== ABSOLUTE EAGLES: Shareholders Receive Wind-Up Report ---------------------------------------------------- On April 18, 2013, the shareholders of Absolute Eagles Fund Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands DB CONCERTO: Shareholders Receive Wind-Up Report ------------------------------------------------ On April 26, 2013, the shareholders of DB Concerto Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345) 949 8244 Facsimile: (345) 949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands DB CONCERTO (LP): Shareholders Receive Wind-Up Report ----------------------------------------------------- On April 26, 2013, the shareholders of DB Concerto (LP) Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345) 949 8244 Facsimile: (345) 949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands DB SIRIUS: Shareholder Receives Wind-Up Report ---------------------------------------------- On April 19, 2013, the shareholder of DB Sirius (Cayman) Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jeremy Simon Spratt c/o Jacqueline Edwards Telephone: +44 (0) 20 7311 8563 Facsimile: +44 (0) 20 7694 3533 KPMG LLP 8 Salisbury Square London EC4Y 8BB DB TWEED: Shareholder Receives Wind-Up Report --------------------------------------------- On April 19, 2013, the shareholder of DB Tweed Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jeremy Simon Spratt c/o Jacqueline Edwards Telephone: +44 (0) 20 7311 8563 Facsimile: +44 (0) 20 7694 3533 KPMG LLP 8 Salisbury Square London EC4Y 8BB ERJF ONE: Shareholders Receive Wind-Up Report --------------------------------------------- On April 26, 2013, the shareholders of ERJF One (Cayman Islands) Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345) 949 8244 Facsimile: (345) 949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands FIRST EAGLE: Shareholders Receive Wind-Up Report ------------------------------------------------ On April 18, 2013, the shareholders of First Eagle Value Realization Fund, Ltd received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands GOLDENTREE CLO: Shareholder Receives Wind-Up Report --------------------------------------------------- On April 26, 2013, the shareholder of Goldentree CLO Debt Recovery Master Fund 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 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914 3115 GOLDENTREE CLO OFFSHORE: Shareholder Receives Wind-Up Report ------------------------------------------------------------ On April 26, 2013, the shareholder of Goldentree CLO Debt Recovery Offshore Fund 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 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914 3115 GRAND CAYMAN: Shareholder Receives Wind-Up Report ------------------------------------------------- On April 12, 2013, the shareholder of Grand Cayman Estates Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Naul Bodden Telephone: +1 (345) 949 9622 c/o Travers Thorp Alberga Harbour Place 2nd Floor 103 South Church Street, George Town Grand Cayman KY1-1106 Cayman Islands IPSWICH VI-A: Shareholder Receives Wind-Up Report ------------------------------------------------- On April 26, 2013, the shareholder of Ipswich VI-A Holdings Cayman 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 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 914 3115 JSKY TECHNOLOGY: Members Receive Wind-Up Report ----------------------------------------------- On April 5, 2013, the members of JSKY Technology Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Fang, Ta-Chang c/o Michelle R. Bodden-Moxam Telephone: (345) 946 6145 Facsimile: (345) 946 6146 Portcullis TrustNet (Cayman) Ltd The Grand Pavilion Commercial Centre Oleander Way, 802 West Bay Road P.O. Box 32052 Grand Cayman KY1-1208 Cayman Islands KINGS LIMITED: Shareholders Receive Wind-Up Report -------------------------------------------------- On April 26, 2013, the shareholders of Kings Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345) 949 8244 Facsimile: (345) 949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands LINCOLN CORPORATION: Sole Member Receives Wind-Up Report -------------------------------------------------------- On April 23, 2013, the sole member of Lincoln Corporation received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Huynh Van Hon c/o 549/66, Xo Viet Nghe Tinh Stree Ward 26, Bihn Thanh District Ho Chi Minh City Viet Nam Telephone: +8 (490) 279 3223 RAB EUROPE: Shareholders Receive Wind-Up Report ----------------------------------------------- On April 17, 2013, the shareholders of Rab Europe Fund Limited 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 SIGNUM IV: Shareholders Receive Wind-Up Report ---------------------------------------------- On April 26, 2013, the shareholders of Signum IV Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345) 949 8244 Facsimile: (345) 949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands SIGNUM PLATINUM: Shareholders Receive Wind-Up Report ---------------------------------------------------- On April 26, 2013, the shareholders of Signum Platinum III Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345) 949 8244 Facsimile: (345) 949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands ZAIS MATRIX III-A: Shareholders Receive Wind-Up Report ------------------------------------------------------ On April 26, 2013, the shareholders of ZAIS Matrix CDO III-A received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345) 949 8244 Facsimile: (345) 949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands ZAIS MATRIX III-B: Shareholders Receive Wind-Up Report ------------------------------------------------------ On April 26, 2013, the shareholders of ZAIS Matrix CDO III-B received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345) 949 8244 Facsimile: (345) 949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands ZAIS MATRIX III-C: Shareholders Receive Wind-Up Report ------------------------------------------------------ On April 26, 2013, the shareholders of Zais Matrix CDO III-C received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345) 949 8244 Facsimile: (345) 949 5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands ============= J A M A I C A ============= * JAMAICA: Losing Millions Due to Slow Harmony Cove Development --------------------------------------------------------------- RJR News reports that Edmund Bartlett, Opposition Spokesman on Tourism, claimed that Jamaica is losing J$55-J$65 million annually due to the slow pace in completing the Harmony Cove project in Trelawny. During his contribution to the annual Budget Debate in Parliament, Mr. Bartlett urged the government to complete the project as it will have to fork out billions of dollars to investors if the decision is made to terminate it, according to RJR News. The report relates that Mr. Bartlett said, under the joint venture members agreement, if the Government is responsible for the project being derailed, the investors will have to be paid US$32 to US$50 million in compensation. An agreement between Harmonisation Limited and the Tavistock Group was signed in September 2006 for the development of the multi- billion dollar resort, RJR News notes. The government's stake in the project, which is managed by Harmonisation Limited, was in the form of 2,200 acres of prime beach front land. Tavistock's role was to prepare the master plan, organize the financing, and construct and market the development, RJR News says. RJR News discloses that Mr. Bartlett is also calling for an audit to determine the number of rooms in the local tourism sector. Mr. Bartlett said this is necessary to determine the room stock that is in need of upgrading and the level of investment required for the industry, RJR News relays. Mr. Bartlett said the process should involve the Tourism Enhancement Fund and the financial sector to create a pool of funds to enable small- and medium-sized properties to upgrade and refurbish, the report adds. =========== M E X I C O =========== CORPORACION GEO: Fitch Cuts Issuer Default Rating to 'C' --------------------------------------------------------- Fitch Ratings has downgraded the following ratings for Corporacion GEO, S.A. de C.V.: -- Foreign Currency Issuer Default Rating (IDR) to 'C' from 'CCC'; -- Local Currency IDR to 'C' from 'CCC'; -- National Long-term rating to 'C(Mex)' from 'CCC(Mex)'; -- USD54 million senior notes due 2014 to 'C/RR4' from 'CCC/RR4'; -- USD250 million senior notes due 2020 to 'C/RR4' from 'CCC/RR4'; -- USD400 million senior notes due 2022 to 'C/RR4' from 'CCC/RR4'; -- MXN400 million Certificados Bursatiles due 2014 to 'C(Mex)' from 'CCC(Mex)'; These ratings have been affirmed as follows: -- National Long-term rating at 'C(cl)' -- Unsecured Notes (Linea de bonos No 726), USD16.5 million due in 2022 at 'C(cl)' The ratings remain on Rating Watch Negative. KEY RATING DRIVERS The downgrades follow GEO's announcement that it did not make an interest payment due April 26, 2013 on its Certificados Bursatiles (GEO 11). The notes contain a five-day grace period. As a result of the company's actions, a default or a distressed debt exchange (DDE) is highly likely, which would likely impose a material reduction of principal and/or interest vis-a-vis the original contractual terms of the company's capital markets debt. The Recovery Rating of 'RR4' reflects an anticipated recovery in the event of default of between 30% and 50%. RATING SENSITIVITY Failure to pay in full the due amount at the end of the grace period and/or the execution of a DDE will result in a downgrade of GEO's IDRs to Restricted Default (RD). DESARROLLADORA HOMEX: Moody's Downgrades Sr. Debt Rating to B2 -------------------------------------------------------------- Moody's Investors Service downgraded Homex's global scale foreign currency senior unsecured debt rating to B2, from Ba3 and placed the rating under review for downgrade. Ratings Rationale: This rating action reflects Homex's highly constrained liquidity and funding as a result of market dynamics, leaving the company with a diminished capacity to pay and refinance debt maturities and the ability to grow its business, despite its monetization of the penitentiaries. Furthermore, Homex's operating results for 2013 will remain under significant pressure, resulting in continued negative free cash flow. Homex's delays in collecting accounts receivables have impacted working capital cycles and liquidity, stressing its credit metrics. In its review Moody's will focus on the completion of the sale of Homex's interest in the penitentiaries, its future cash flow generation and its ability to make timely interest and principal payments on its upcoming debt. Although, the sale of the penitentiaries provides the company with some liquidity, Homex's limited cash flows will continue to be stressed, which likely implies difficulty in being able to quickly develop and sell homes in the near-term. Furthermore, Moody's expects that the deterioration in the company's operating profits and credit metrics will persist. Should the company complete the sale of its interest in the penitentiaries as planned and be able to increase its home sales while generating neutral cash flows the ratings will most likely be confirmed. Conversely, should Homex fail to complete the sale of its interest in the penitentiaries and/or face any liquidity challenges the ratings will most likely be downgraded multiple notches. Moody's de Mexico downgraded Desarrolladora Homex, S.A.B. de C.V.'s national scale unsecured debt rating and issuer rating to Ba1.mx, from A3.mx (global scale local currency rating to B2 from Ba3), its Certificados Bursatiles program rating to Ba1.mx, from A3.mx (global scale local currency rating to (P)B2 from (P)Ba3). Concurrently, Moody's will withdraw the Certificados Bursatiles program rating and the issuances from this program as the Homex has not been able to place these issuances in the market. The ratings were placed under review for downgrade. The following ratings were downgraded and placed under review for downgrade: Moody's Investors Service Desarrolladora Homex, S.A.B. de C.V. -- global scale foreign currency rating on senior notes issued in the USA to B2, from Ba3. Moody's De Mexico Desarrolladora Homex, S.A.B. de C.V. -- National scale issuer rating to Ba1.mx, from A3.mx and global scale local currency issuer rating to B2, from Ba3. The following ratings were downgraded and will be withdrawn: Desarrolladora Homex, S.A.B. de C.V. -- National scale rating on senior unsecured debt program for up to $2 billion Mexican pesos to Ba1.mx, from A3.mx, global scale local currency rating to (P)B2, from (P)Ba3. Desarrolladora Homex, S.A.B. de C.V. -- National scale rating on senior unsecured notes of $500 million Mexican pesos to Ba1.mx, from A3.mx, global scale local currency rating to B2, from Ba3 and national scale rating on senior unsecured notes of $700 million Mexican pesos to Ba1.mx, from A3.mx, global scale local currency rating at B2, from Ba3. The last rating action with respect to Homex was on March 20, 2013, when Moody's de Mexico affirmed Homex's national scale unsecured debt rating and issuer rating at A3.mx. Moody's Investors Service affirmed the global scale, foreign currency senior unsecured debt rating at Ba3 and revised the outlook to negative, from stable. Desarrolladora Homex, S.A.B. de C.V. [NYSE: HXM; BMV: HOMEX] is based in Culiacan, Sinaloa, Mexico. The firm reported assets of approximately MXP50,189 million and equity of approximately MXP14,792 million as of December 31, 2012. Homex is a homebuilder engaged in the development, construction, marketing and sale of mostly affordable housing in Mexico. The principal methodology used in this rating was Global Homebuilding Industry published in March 2009. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. DESARROLLADORA HOMEX: Moody's Lowers Nat'l. Debt Rating to Ba1.mx ----------------------------------------------------------------- Moody's de Mexico downgraded Desarrolladora Homex, S.A.B. de C.V.'s national scale unsecured debt rating and issuer rating to Ba1.mx, from A3.mx (global scale local currency rating to B2 from Ba3), its Certificados Bursatiles program rating to Ba1.mx, from A3.mx (global scale local currency rating to (P)B2 from (P)Ba3). Concurrently, Moody's will withdraw the Certificados Bursatiles program rating and the issuances from this program as the Homex has not been able to place these issuances in the market. The ratings were placed under review for downgrade. Ratings Rationale: These rating actions reflect Homex's highly constrained liquidity and funding as a result of market dynamics, leaving the company with a diminished capacity to pay and refinance debt maturities and the ability to grow its business, despite its monetization of the penitentiaries. Furthermore, Homex's operating results for 2013 will remain under significant pressure, resulting in continued negative free cash flow. Homex's delays in collecting accounts receivables have impacted working capital cycles and liquidity, stressing its credit metrics. In its review Moody's will focus on the completion of the sale of Homex's interest in the penitentiaries, its future cash flow generation and its ability to make timely interest and principal payments on its upcoming debt. Although, the sale of the penitentiaries provides the company with some liquidity, Homex's limited cash flows will continue to be stressed, which likely implies difficulty in being able to quickly develop and sell homes in the near-term. Furthermore, Moody's expects that the deterioration in the company's operating profits and credit metrics will persist. Should the company complete the sale of its interest in the penitentiaries as planned and be able to increase its home sales while generating neutral cash flows the ratings will most likely be confirmed. Conversely, should Homex fail to complete the sale of its interest in the penitentiaries and/or face any liquidity challenges the ratings will most likely be downgraded multiple notches. Moody's Investors Service downgraded Homex's global scale foreign currency senior unsecured debt rating to B2, from Ba3 and placed the rating under review for downgrade. The following ratings were downgraded and placed under review for downgrade: Moody's Investors Service Desarrolladora Homex, S.A.B. de C.V. -- global scale foreign currency rating on senior notes issued in the USA to B2, from Ba3. Moody's De Mexico Desarrolladora Homex, S.A.B. de C.V. -- National scale issuer rating to Ba1.mx, from A3.mx and global scale local currency issuer rating to B2, from Ba3. The following ratings were downgraded and will be withdrawn: Desarrolladora Homex, S.A.B. de C.V. -- National scale rating on senior unsecured debt program for up to $2 billion Mexican pesos to Ba1.mx, from A3.mx, global scale local currency rating to (P)B2, from (P)Ba3. Desarrolladora Homex, S.A.B. de C.V. -- National scale rating on senior unsecured notes of $500 million Mexican pesos to Ba1.mx, from A3.mx, global scale local currency rating to B2, from Ba3 and national scale rating on senior unsecured notes of $700 million Mexican pesos to Ba1.mx, from A3.mx, global scale local currency rating at B2, from Ba3. Desarrolladora Homex, S.A.B. de C.V. [NYSE: HXM; BMV: HOMEX] is based in Culiacan, Sinaloa, Mexico. The firm reported assets of approximately $50,189 million Mexican Pesos and equity of approximately $14,792 million Mexican Pesos as of December 31, 2012. Homex is a homebuilder engaged in the development, construction, marketing and sale of mostly affordable housing in Mexico. The principal methodology used in this rating was Global Homebuilding Industry published in March 2009. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. MAXCOM TELECOMUNICACIONES: Considers Filing for Bankruptcy ---------------------------------------------------------- Crayton Harrison at Bloomberg News reports that Maxcom Telecomunicaciones SAB said it's considering operational and financial alternatives, including a Chapter 11 bankruptcy filing, after a takeover deal with Ventura Capital Privado SA collapsed. The Mexican phone company said that only 61.93% of old notes were tendered in a bond exchange, not enough to complete a swap, which was a requirement for an equity offer from Ventura Capital, according to Bloomberg News. "In light of this outcome, Maxcom is considering all of its alternatives including, but not limited to, commencement of a Chapter 11 case or other restructuring proceeding," the company said in the statement obtained by the news agency. Maxcom was seeking to complete the 2.90-pesos-a-share takeover offer, which would include an investment of $45 million to use for network improvements, to better compete with America Movil SAB (AMXL), the report notes. Maxcom said this month it may have to file for bankruptcy and may miss a June 15 coupon payment if enough debt holders didn't agree to the bond swap, which expired on April 26, Bloomberg News relates. The company had asked to exchange notes due in 2014 for new ones due in 2020, and Ventura had set a requirement that 80 percent of bondholders accept the swap. Ventura had the right to reduce that threshold to 75.1 percent at its discretion. Maxcom's cash had dwindled to 102.9 million pesos ($8.4 million) from 147 million pesos at the end of 2012, it said April 11, Bloomberg News discloses. Ventura, which announced its offer for Maxcom in December, is a Mexico City-based private-equity firm led by investors including Enrique Castillo and Javier Molinar Horcasitas, former executives of bank Ixe Grupo Financiero SAB. Ixe was sold in 2011 to Grupo Financiero Banorte SAB, the report adds. * MEXICO: Moody's Assign Ba2 Rating to San Luis Colorado -------------------------------------------------------- Moody's de Mexico assigned issuer ratings of A2.mx (Mexico National Scale) and Ba2 (Global Scale, local currency) to the Municipality of San Luis Rio Colorado. The ratings outlook is stable. Ratings Rationale: The issuer ratings of A2.mx (Mexico National Scale) and Ba2 (Global Scale, local currency) assigned to the Municipality of San Luis Rio Colorado reflect a relatively solid economy and a recovering trend in operating results combined with a track record of negative consolidated financial results and weak liquidity. San Luis Rio Colorado is a municipality of the State of Sonora located at the border with the United States. The municipality benefits from a stable economic base and has shown a gradual improvement in its operating results. The own source revenues have been stable averaging 33% of total revenues in the last five years. However personnel costs represented 60% of operating expenditures exerting pressure on the municipality's operating results and financial flexibility. Moody's notes that the municipality has plans to reign on its operating costs. The debt burden averaged 1.2% of operating revenues in 2008-12, a low level and below other Ba-rated municipalities. Debt is expected to increase to a still manageable 27% of operating revenues by the end of 2013, on the back of municipality's capital expenditures plan. The net working capital position averaged -2.9% of total expenditures during the last five years. Current liabilities have shown a declining trend over the last three years. The reduction of accounts payable affected the cash levels leading to a -4.6% working capital position registered in 2012. What Can Change the Rating Up/Down The continued strengthening of operating margins and the recording of consolidated financial results that lead the improvement of liquidity levels could exert upward pressure on the ratings. Conversely the deterioration in the financial performance and deep depletion of the liquidity position of the municipality could exert downward pressure on the ratings. The principal methodologies used in this rating were Regional and Local Governments published on 18-Jan-2013 and Mapping Moody's National Scale Ratings to Global Scale Ratings published in 9-Oct- 2012. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. =========== P A N A M A =========== INVERSIONES FINANCIERAS: Fitch Assigns 'B' Issuer Default Ratings ----------------------------------------------------------------- Fitch Ratings has assigned a long-term Issuer Default Ratings (IDR) of 'B' to Inversiones Financieras CrediQ Business, S.A. (ICQB). The Rating Outlook is Stable. Fitch also expects to rate ICQB's upcoming $30 million issuance due in 2016 'B(EXP)'. ICQB's IDR drives the expected rating as the issuance will be senior unsecured with no credit enhancement. The final rating of the $30 million issuance is contingent upon the receipt of final documents and legal opinions conforming to the information already received. A full list of ICQB's rating follows at the end of this press release. KEY RATING DRIVERS ICQB's ratings reflect its relatively small size and consequently limited financial flexibility, and the sensitivity of its core business to changes in the economic cycle and/or market conditions. The ratings also factor in the sound capital position in all subsidiaries as well as the regional leading market position of the related vehicle distributors, the main business source for ICQB's subsidiaries. The holding company encompasses auto finance operations in Honduras, Costa Rica and El Salvador. The holding company's specialization in auto financing implies a high correlation with the business cycle. Negative changes in the economic environment can drastically affect the financial performance of all subsidiaries. Slow economic growth directly affects new car purchases, limiting asset growth, and may also have a negative impact on asset quality. In Fitch's opinion, the subsidiaries' sensitivity to changes in the business cycle is partially off-set by the group's experience in this business line and its geographic diversification. As of December 2012; the three main operating subsidiaries registered very low impairment ratios (below 2% on an individual basis and just 1.2% on a consolidated basis); while historic loan charge offs have been limited. It is worth mentioning that a proportion of the loan portfolio in Honduras and Costa Rica is granted in USD, exposing some debtors to exchange rate changes that may hinder their payment capacity. ICQB is taking relevant steps towards a more flexible funding structure by diversifying sources by country and type (i.e., deposits, local and international issuance, multilateral financial institutions, and commercial banks). However, ICQB's subsidiaries' sensitivities to changes in market conditions remain important. Challenges vary between subsidiaries. As a regulated financial institution, the Honduran operation benefits from its ability to take deposits. However, its capacity to manage changes in funding costs is limited. The Salvadoran operation's main challenge is its funding renewal, which is dependent on market liquidity conditions. The short-term funding structure favors its cost of funding, but pressures its cash flow. In turn, the Costa Rican operation is highly dependent on commercial banks funding, which is expensive and requires a high proportion of loans to be pledged as collateral. In Fitch's opinion, the expected enhancements in the subsidiaries' funding structure will likely improve the group's financial flexibility in the event of challenging market conditions. All subsidiaries have an adequate capital position to support projected growth. Given their expected profitability and growth, Fitch expects the group's capital position to remain at a comfortable level over the medium term. At a consolidated level, debt is moderate and double leverage is expected to remain at its current level (around 115%). Debt service ratios at the moment reflect the low financial debt at the holding company, but will remain close to a low 1.5 times (x) after the proposed issuance (EBITDA to interest expenses on a cumulative basis for 2013). Also, debt to EBITDA metrics will be around 6x, according to the projected dividend payments from the operating subsidiaries. Fitch expects that the local operations' profitability will be sufficient to provide a consistent dividend and interest payment flow to the holding company. The vast majority of the loan portfolio is granted in USD, hence the current USD issuance won't result in additional FX risk to ICQB balance sheet, albeit, creditors still bear a devaluation risk. The issuance will be senior unsecured, and will be guaranteed by all captive financing companies consolidating in ICQB, subject to certain exceptions. Most of the funding provided by this issuance will be used to support growth through lending to the subsidiaries rather than equity investments. RATING SENSITIVITIES The Stable Outlook reflects Fitch's expectation of no substantial changes in ICQB's risk profile in the foreseeable future. However, changes ICQB's subsidiaries' risk profiles would affect the holding's IDRs. ICQB's IDRs are sensitive to a change in Fitch's assumptions on asset quality, profitability and capital position. They could be upgraded if financial flexibility improves beyond Fitch's expectations. Such improvements should include more diversified funding and an extended maturity profile. The ratings may be downgraded if significant changes in market conditions reduce the subsidiaries' capacity to stream dividends and interest payments to the holding. Also, an increase of the double leverage ratio above 125% may result in a negative rating action. PROFILE ICQB is a Panamanian holding company that consolidates the captive financing companies of Grupo Q in El Salvador, Honduras and Costa Rica(including CrediQ, S.A. de C.V., Financiera CrediQ, S.A. , Inversiones CrediQ C.R.). Each one of these operations accounts for about a third of the consolidated assets, and are considered equally important to the holding company. Fitch has assigned ICQB the following initial ratings: -- Long-term IDR of 'B'; Outlook Stable; -- Short-term IDR of 'B'; -- Long-term senior unsecured bonds of 'B'. =============== X X X X X X X X =============== * BOND PRICING: For the Week April 22 to April 26, 2013 ------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- ARGENT-$DIS 8.28 12/31/2033 USD 57.5 ARGENT-$DIS 8.28 12/31/2033 USD 58 ARGENT-$DIS 8.28 12/31/2033 USD 58 ARGENT-$DIS 8.28 12/31/2033 USD 58.491 ARGENT-$DIS 8.28 12/31/2033 USD 60 ARGENT- PAR 1.18 12/31/2038 ARS 45.344 ARGENT- DIS 7.82 12/31/2033 EUR 45 ARGENT- DIS 7.82 12/31/2033 EUR 50 ARGENT- DIS 7.82 12/31/2033 EUR 50.5 ARGENT- DIS 4.33 12/31/2033 JPY 35.5 ARGENT- DIS 4.33 12/31/2033 JPY 36 ARGENT- PAR 0.45 12/31/2038 JPY 15 ARGENT-PAR&GDP 0.45 12/31/2038 JPY 8 ARGENTINA 9 11/29/2018 USD 74.875 ARGNT-BOCON PRE9 2 3/15/2014 ARS 152.5 BANCO MACRO SA 9.75 12/18/2036 USD 71.25 BANCO MACRO SA 9.75 12/18/2036 USD 71.03 BANCO MACRO SA 9.75 12/18/2036 USD 72.1 CAPEX SA 10 3/10/2018 USD 73.9 CAPEX SA 10 3/10/2018 USD 73.375 CIA LATINO AMER 9.5 12/15/2016 USD 66 EMP DISTRIB NORT 9.75 10/25/2022 USD 46 EMP DISTRIB NORT 10.5 10/9/2017 USD 95.001 EMP DISTRIB NORT 9.75 10/25/2022 USD 46.125 METROGAS SA 8.875 12/31/2018 USD 72.875 PROV BUENOS AIRE 9.625 4/18/2028 USD 61.664 PROV BUENOS AIRE 9.625 4/18/2028 USD 61.625 PROV BUENOS AIRE 9.375 9/14/2018 USD 67.25 PROV BUENOS AIRE 9.375 9/14/2018 USD 67.127 PROV BUENOS AIRE 10.875 1/26/2021 USD 70.263 PROV BUENOS AIRE 10.875 1/26/2021 USD 70.245 PROV DE FORMOSA 5 2/27/2022 USD 62.25 PROV DE MENDOZA 5.5 9/4/2018 USD 74.42 PROV DE MENDOZA 5.5 9/4/2018 USD 74.375 PROV DEL CHACO 4 12/4/2026 USD 27.25 PROV DEL CHACO 4 11/4/2023 USD 54.75 TRANSENER 9.75 8/15/2021 USD 46.69 TRANSENER 8.875 12/15/2016 USD 41 TRANSENER 9.75 8/15/2021 USD 42.75 CAYMAN ISLAND ------------- BANCO BPI (CI) 4.15 11/14/2035 EUR 71.75 BCP FINANCE CO 4.239 45.917 BCP FINANCE CO 5.543 45.7 BES FINANCE LTD 4.5 65 BES FINANCE LTD 5.58 69.167 CAM GLOBAL FIN 6.08 12/22/2030 EUR 71.25 CHINA FORESTRY 10.25 11/17/2015 USD 52 CHINA FORESTRY 10.25 11/17/2015 USD 52.5 CHINA SUNERGY 4.75 6/15/2013 USD 59.141 ERB HELLAS CAYMA 9 3/8/2019 EUR 16 ESFG INTERNATION 5.753 56.6 GOL FINANCE 8.75 77 JINKOSOLAR HOLD 4 5/15/2016 USD 66.899 LDK SOLAR CO LTD 10 2/28/2014 CNY 69.071 LUPATECH FINANCE 9.875 31 LUPATECH FINANCE 9.875 30.95 PUBMASTER FIN 6.962 6/30/2028 GBP 63.086 RENHE COMMERCIAL 11.75 5/18/2015 USD 74.5 RENHE COMMERCIAL 13 3/10/2016 USD 78.75 RENHE COMMERCIAL 13 3/10/2016 USD 72.75 RENHE COMMERCIAL 11.75 5/18/2015 USD 75.005 SUNTECH POWER 3 3/15/2013 USD 33 SUNTECH POWER 3 3/15/2013 USD 44.75 CHILE ----- ALMENDRAL TEL 3.5 12/15/2014 CLP 43.436 CHILE 3 1/1/2042 CLP 65.066 CHILE 3 1/1/2042 CLP 65.066 CHILE 3 1/1/2040 CLP 66.564 CHILE 3 1/1/2040 CLP 66.564 COLBUN SA 3.2 5/1/2013 CLP 25.26 TALCA CHILLAN 2.75 12/15/2019 CLP 65.673 PUERTO RICO ----------- PUERTO RICO CONS 6.2 5/1/2017 USD 58.5 PUERTO RICO CONS 6.5 4/1/2016 USD 69.48 VENEZUELA --------- PETROLEOS DE VEN 5.5 4/12/2037 USD 69.75 PETROLEOS DE VEN 5.375 4/12/2027 USD 69.35 *********** 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, Julie Anne L. Toledo, 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 * * *