/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130520.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, May 20, 2013, Vol. 14, No. 98 Headlines A N T I G U A & B A R B U D A LIAT: To Present Legal Opinion Summary to Trinidad Prime Minister A R G E N T I N A EDENOR: Moody's Eyes Possible Downgrades for Caa1/Ba3.ar Ratings C A Y M A N I S L A N D S BALISPUR LIMITED: Shareholders Receive Wind-Up Report BEYOND LIMITS: Shareholders Receive Wind-Up Report CDH LIMITED: Shareholders Receive Wind-Up Report CURLEW LIMITED: Shareholders Receive Wind-Up Report DDL LIMITED: Shareholders Receive Wind-Up Report F.V.E. ASSOCIATES: Shareholders' Final Meeting Set for May 28 GARNET LIMITED: Shareholders Receive Wind-Up Report HARBER LIMITED: Shareholders Receive Wind-Up Report INTERNATIONAL TRADING: Shareholders Receive Wind-Up Report PANTHERA PARDUS: Shareholders Receive Wind-Up Report PEARL LIMITED: Shareholders Receive Wind-Up Report SOUTH AMERICAN: Shareholders Receive Wind-Up Report TRITAN INVESTMENTS: Shareholders Receive Wind-Up Report ZAM SPECIALIST: Shareholders' Final Meeting Set for May 23 M E X I C O ABC CAPITAL: Moody's Reviews Impact of Loan Modification Program GRUPO SENDA: Fitch Affirms 'B' FC Issuer Default Rating NII HOLDINGS: Moody's Cuts CFR to B3 on Declining Performance SU CASITA: Fitch Downgrades Rating on Class A Notes to 'CCC' P A N A M A BANCO BHD: Fitch Affirms Viability Rating at 'b' P A R A G U A Y * PARAGUAY: IDB Approves US$122 Million Loan T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Records Estimated Losses of US$70 Mil. in 2012 X X X X X X X X * BOND PRICING: For the Week May 13 to May 17, 2013 - - - - - =============================== A N T I G U A & B A R B U D A =============================== LIAT: To Present Legal Opinion Summary to Trinidad Prime Minister ----------------------------------------------------------------- Caribbean360.com reports that shareholder governments of the regional airline, Leeward Islands Air Transport, known as LIAT, have agreed to provide a summary of a legal opinion to Trinidad and Tobago Prime Minister Kamla Persad Bissessar regarding the "unfair" subsidy given to the state-owned Caribbean Airlines Limited, Prime Minister Dr. Ralph Gonsalves said. Mr. Gonsalves told a news conference that while Barbados, Antigua and Barbuda, Dominica and his country, the main shareholders of the Antigua-based airline do not want a fight with Port-of-Spain on the issue, they were nonetheless confident of their position ahead of talks with the Trinidad and Tobago leader later this month, according to Caribbean360.com. The report relates that the shareholder governments have complained that the Port of Spain subsidy to CAL is a violation of the Revised Treaty of Charguaramas that governs the regional integration movement as well as a violation of the Common Air Services Agreement among Caribbean Community (CARICOM) member countries, resulting in substantial losses to LIAT. Mr. Gonsalves told reporters as a result of the legal opinion given to LIAT, the shareholder governments had various options including taking the matter to arbitration, going before the tribunal of the Trinidad-based Caribbean Court of Justice (CCJ) as well as citing "rules of impermissible subsidies" under the articles of the CARICOM treaty, the report discloses. The report notes that Mr. Gonsalves said the governments were also open to going before the CARICOM Anti Competition. Mr. Gonsalves, the report relates, said that the delegation to meet with Prime Minister Persad Bissessar would also include the Aviation Ministers from Antigua and Barbuda and Barbados. The report discloses that at the end of the LIAT shareholder's meeting in Barbados last weekend, Mr. Gonsalves said that for the period 2008 to 2012, LIAT expended on fuel US$106.1 million while CAL paid US$43.64 million as a result of the subsidies. Mr. Gonsalves said that the airline paid an average US$127 for a barrel of jet fuel over the five year period while CAL for the same period paid an average price of US$53, the report says. "That is on the fuel subsidy side. It is estimated by the management that during that five year period we loss 78, 000 passengers to CAL because of their subsidy and the revenues which we would have lost as a result of that unfair competition would have been US$10.2 million," the report quoted Mr. Gonsalves as saying. "If Caribbean Airlines were to stop flying, it will not be missed in the same way as if LIAT were grounded," Mr. Gonsalves said, adding that the airline would use the acquisition of its new planes to fly to destinations like Haiti and Jamaica, the report adds. As reported in the Troubled Company Reporter-Latin America on Jan. 3, 2012, Antigua Caribarena related that former Antigua Aviation Minister Robin Yearwood wants to see a merger between Leeward Islands Air Transport (LIAT) and the Trinidad and Tobago- owned Caribbean Airlines Limited, as he believes this is the only way the Antigua-based regional carrier can survive. Mr. Yearwood's call came against the background of media reports out of Port of Spain that suggested CAL's management may be eyeing expansion into the OECS territories, according to Antigua Caribarena. About LIAT Headquartered in V. C. Bird International Airport in Saint George Parish, Antigua, Leeward Islands Air Transport, known as LIAT, operates high-frequency interisland scheduled services serving 22 destinations in the Caribbean. The airline's main base is VC Bird International Airport, Antigua and Barbuda, with bases at Grantley Adams International Airport, Barbados and Piarco International Airport, Trinidad and Tobago. ================= A R G E N T I N A ================= EDENOR: Moody's Eyes Possible Downgrades for Caa1/Ba3.ar Ratings ---------------------------------------------------------------- Moody's Latin America placed EDENOR Caa1/Ba3.ar ratings on review for possible downgrade. Ratings Rationale: The review is mainly prompted by the company's reported accumulated losses that, as of March 31, have consumed its net worth completely. Furthermore, Edenor's cash generation continued to be weak and only through the cutting of its payments to Cammesa the company was able to sustain its other day to day cash needs, including interest on its debt. The company reported its first quarter results that recorded a net loss of ARS 510 million which, when added to the accumulated losses of ARS 885 million at year end 2012, translated into a negative net worth (of ARS 92.253) at the end of the first quarter. The review will specifically focus on Edenor's expected cash generation capability in relation to its debt burden in the context of a continued lack of any adjustment to its distribution tariffs which have effectively been frozen since 2008 . In addition, the review will consider what alternatives or plans the company has to sustain sufficient liquidity to continue to operate and/or rebuild its net worth. In particular Moody's will assess: 1) the expected future cash flow impact of the additional fixed charge introduced to Edenor's clients by Resolution 347/12 ENRE (Electricity Regulator) and 2) the implications of Resolution 250/13 S.E. (Energy Secretariat) for the company and how this compensation mechanism will impact Edenor's balance sheet and liquidity. Empresa Distribuidora y Comercializadora Norte S.A (Edenor), headquartered in Buenos Aires, Argentina, is the country's largest electricity distribution company in terms of the number of customers and amount of electricity sold. The methodologies used in this rating were Regulated Electric and Gas Utilities published in August 2009, and Mapping Moody's National Scale Ratings to Global Scale Ratings published in October 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. ========================== C A Y M A N I S L A N D S ========================== BALISPUR LIMITED: Shareholders Receive Wind-Up Report ----------------------------------------------------- On May 15, 2013, the shareholders of Balispur Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. Barnaby Gowrie Telephone: +1 (345) 914 6365 BEYOND LIMITS: Shareholders Receive Wind-Up Report -------------------------------------------------- On May 15, 2013, the shareholders of Beyond Limits Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. Barnaby Gowrie Telephone: +1 (345) 914 6365 CDH LIMITED: Shareholders Receive Wind-Up Report ------------------------------------------------ On May 15, 2013, the shareholders of CDH Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. Barnaby Gowrie Telephone: +1 (345) 914 6365 CURLEW LIMITED: Shareholders Receive Wind-Up Report --------------------------------------------------- On May 14, 2013, the shareholders of Curlew Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Charles Gary Hepburn Wardour Management Services Limited Telephone: (345) 945 3301 Facsimile: (345) 945-3302 P O Box 10147 Grand Cayman KY1-1002 Cayman Islands DDL LIMITED: Shareholders Receive Wind-Up Report ------------------------------------------------ On May 15, 2013, the shareholders of DDL Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. Barnaby Gowrie Telephone: +1 (345) 914 6365 F.V.E. ASSOCIATES: Shareholders' Final Meeting Set for May 28 ------------------------------------------------------------- The shareholders of F.V.E. Associates (Cayman) will hold their final meeting on May 28, 2013, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Weerhaan Investments II Limited c/o Eric T. Converse 6893 Sladek Road New Hope Pennsylvania 18938 United States of America Telephone: +1 (215) 297 8415 e-mail: Eric.Converse@Nedamcocapital.com GARNET LIMITED: Shareholders Receive Wind-Up Report --------------------------------------------------- On May 14, 2013, the shareholders of Garnet Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Charles Gary Hepburn Wardour Management Services Limited Telephone: (345) 945 3301 Facsimile: (345) 945-3302 P O Box 10147 Grand Cayman KY1-1002 Cayman Islands HARBER LIMITED: Shareholders Receive Wind-Up Report --------------------------------------------------- On May 15, 2013, the shareholders of Harber Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. Barnaby Gowrie Telephone: +1 (345) 914 6365 INTERNATIONAL TRADING: Shareholders Receive Wind-Up Report ---------------------------------------------------------- On May 13, 2013, the shareholders of International Trading and Chartering Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Royhaven Secretaries Limited c/o Julie Reynolds Telephone: 945 4777 Facsimile: 945 4799 P O Box 707 Grand Cayman KY1-1107 Cayman Islands PANTHERA PARDUS: Shareholders Receive Wind-Up Report ---------------------------------------------------- On May 15, 2013, the shareholders of Panthera Pardus Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. Barnaby Gowrie Telephone: +1 (345) 914 6365 PEARL LIMITED: Shareholders Receive Wind-Up Report -------------------------------------------------- On May 15, 2013, the shareholders of Pearl Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. Barnaby Gowrie Telephone: +1 (345) 914 6365 SOUTH AMERICAN: Shareholders Receive Wind-Up Report --------------------------------------------------- On May 14, 2013, the shareholders of South American Hotel Corporation of Israel Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Rob Mcmahon c/o Ms. Aisling Clarke Ernst & Young Ltd 62 Forum Lane, Camana Bay PO Box 510 Grand Cayman KY1 -1106 Cayman Islands Telephone +1 (345) 814 8986 e-mail Aisling.Clarke@ky.ey.com TRITAN INVESTMENTS: Shareholders Receive Wind-Up Report ------------------------------------------------------- On May 15, 2013, the shareholders of Tritan Investments Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. Barnaby Gowrie Telephone: +1 (345) 914 6365 ZAM SPECIALIST: Shareholders' Final Meeting Set for May 23 ---------------------------------------------------------- The shareholders of Zam Specialist Opportunity Fund, Ltd. will hold their final meeting on May 23, 2013, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Glen Cremer c/o Maree Martin Telephone: (345) 814 7376 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands =========== M E X I C O =========== ABC CAPITAL: Moody's Reviews Impact of Loan Modification Program ---------------------------------------------------------------- Moody's de Mexico S.A. de C.V. announced that the loan modification program to be implemented by ABC Capital, S.A. Institucion de Banca Multiple (ABC) in connection with the CREYCB 06 and 06-2U certificates could have a credit positive impact on the transaction, because it could turn highly delinquent loans into performing, cash flowing collateral. However, depending on how the servicer implements the program and on the future performance of the modified loans, the effect on the transaction could be negative, increasing severity of the loss. Moody's will continue to monitor the transaction's performance to assess impact of the loan modification program once implemented. Currently, Moody's rates the senior certificate (CREYC 06U) B3 (sf) (Global Scale, Local Currency) and B1.mx (sf) (National Rating Scale), and the subordinated certificate (CREYCB 06-2U) Ca (sf) (Global Scale, Local Currency) and Ca.mx (sf) (National Rating Scale). The ratings were placed on review for possible downgrade based on rising concerns about the potential for high severity of loss on defaulted loans. Investors in this transaction have approved the loan modification program to be implemented by the servicer, ABC. This program intends to have some of the loans start cash flowing again by providing loan modifications that may entail principal haircuts of up to 30%. Given that 43% of the current pool was more than 180 days past due as of February 2013, and the timing of the foreclosure process and sale in Mexico is anticipated to be protracted, the implementation of the loan modification program is expected to improve the credit profile of the transaction. However, if the program is not implemented judiciously, or if the re-default rate of modified loans is high, loan severities could increase above the severities currently expected if the loan goes through the judicial process, and above the current severity used by Moody's to rate this transaction. This would be credit-negative for the transaction, and may lead to a downgrade. Moody's based its analysis on preliminary information that the servicer provided about this future modification program. Moody's notes that the transaction agreements are not yet finalized to reflect these loan modification guidelines. Based on information provided by the servicer, Moody's identified credit-positive aspects that include: The servicer cannot modify current loans. In order to qualify for a loan modification, the borrower has to be delinquent (at least 12 installments past due in the case of the two products that offer more significant haircuts, while for the third product the servicer can offer a loan modification to a borrower with a lower delinquency but subject to detailed analysis). As of February 2013, 39% of the current pool was 360+ days past due. In addition, the servicer must perform sufficient and effective collecting actions before offering a modification product. Although the loan modification may entail a principal haircut, this haircut cannot be higher than 30% of the outstanding balance of the loan. This limits the servicer's discretion when negotiating the haircuts. In general, principal and interest are forgiven if the borrower continues to be current on the loan during a certain period of time. Recoveries on the modified loan must be higher than recoveries through the judicial foreclosure process. The servicer must perform a net present value analysis to satisfy this condition on a case by case basis in order to maximize collections from collateral. Modifications must be negotiated on an individual basis, rather than as part of a general program. This is positive because it means that the servicer should understand the borrower's financial situation and evaluate causes of default and the borrower's willingness to pay, which in turn would determine the modification product to be offered. When granting a modification, the servicer must first obtain from the borrower a pre-consent to either a died-in-lieu of foreclosure, or an expedited foreclosure process, both expected to reduce the time of repossession of the collateral if the borrower re-defaults under the modified terms. The servicer cannot provide more than one modification to a borrower. Modified loans will only be considered "current" for purposes of overcollateralization (OC) calculation if they have been current for at least 3 consecutive months after being modified, and should be current for the same number of months to be considered as "current" for purposes of servicer fee calculation. However, from an industry perspective, loan modification programs generally also entail risks: The servicing fee structure may not fully align the interests of investors with those of the servicer in some cases. By charging a higher fee for current loans, the servicer may be tempted to provide modifications to borrowers who do not deserve them, or to extend another modification to an already modified loan. The servicer may offer a loan modification without pursuing adequate collection actions against the borrower, or may offer loan modifications to a large number of obligors, increasing the risk of moral hazard. If the loan modifications are not documented properly, the servicer may not be able to repossess the collateral as fast as expected. General discretion of the servicer to implement the loan modification program within the guidelines. For example, the servicer will have discretion in determining the key assumptions to calculate the net present value of the loss of a modified loan, when compared to the severity of the loss of a foreclosure process. Lack of transparent and complete reporting of loan modifications, which may make it difficult to assess the full impact of the loan modification program on the credit quality of the pool. Before any implementation of the loan modification program, Moody's assumed a loan severity of 50% of the pool's outstanding balance. Moody's notes that it is reviewing this assumption as part of the actions taken over the ratings of this transaction announced on February 22, 2013. Moody's analyzed what would be the potential severity of the loss if the servicer implements the proposed modification program. In performing this calculation, Moody's considered a principal forgiveness of 30% of the loan's outstanding balance (the maximum that can be provided to a borrower), a re-default rate of 55% (which indicates the proportion of loans that re-default after being modified), and loss given default of 50%. Under those assumptions, the severity of the loss after implementing the modification products would be 49%, which is very similar to the severity of the loss Moody's currently assumes for the pool (50%). As a result, the risks of a negative impact on the transaction seem mitigated. However, if Moody's assumes a loan re-default rate of 58%, the severity associated with the loan modification programs would be slightly higher than the current assumption, which would be credit negative. Moody's notes that the assumptions regarding modifications are subject to high volatility due to the limited reliable data available on loan severities and re-defaults. There is a limited number of cases that have gone through the judicial foreclosure process, with the corresponding sale of the guarantee. In addition, there is very limited historical data on actual performance of modified loans and modified loans' re-default rates. As a result, these assumptions could change as more data points become available. Moody's does not express an opinion as to whether the proposed modification products could have other, non-credit-related effects. Moody's opinion was based in part on the servicer's description of how it expects to implement these loan modification products. Further, Moody's opinion does not preclude the possible future downgrade or withdrawal of the current ratings for any reason, including Moody's opinion with respect to the implementation and effectiveness of these loan modification products and any adverse effect they may have on the credit quality and performance of the affected transaction. The modification products to be implemented over the collateral, consist mainly of: i) the deferral of a percentage of past due installments, with the possibility of forgiving a portion of this amount, ii) a discount applied to the outstanding balance of a delinquent loan, reducing the monthly payment permanently, and iii) a discount on the outstanding balance, if the loan is liquidated in full. According to the product implementation guidelines, the maximum discount to be granted over a loan's balance can be of up to 30% of the outstanding principal amount of the loan. In the first two loan modification products described, principal will only be forgiven if the borrower continues to be current after the loan is modified. GRUPO SENDA: Fitch Affirms 'B' FC Issuer Default Rating ------------------------------------------------------- Fitch Ratings has affirmed Grupo Senda Autotransporte, S.A., de C.V.'s (Grupo Senda) local and foreign currency Issuer Default Ratings (IDRs) and its USD150 million senior secured guaranteed notes due in 2015 as follows: -- Foreign currency Issuer Default Rating (IDR) at 'B'; -- Local currency IDR at 'B'; -- USD150 million secured guaranteed notes due in 2015 at 'B/RR4'. The Rating Outlook is Stable. The Stable Outlook incorporates the expectation that Grupo Senda will close 2013 with an EBITDA margin around 24% and gross leverage ratio, as measured by total debt/EBITDA, of around 3x. Grupo Senda's 2013 free cash flow (FCF) generation is anticipated to be slightly positive during 2013; capital expenditures are expected to be funded with cash flow, not additional debt. Liquidity is expected to remain weak due to significant levels of debt repayment due during 2013 and 2014 relative to the company's cash position. Grupo Senda's 'B' ratings reflect the company's leading market position in the highly competitive and fragmented intercity bus passenger transportation sector in Mexico, moderate leverage, high financing cost, limited FCF generation, and weak liquidity, which leads the company to heavily relying upon banks to fund debt maturities during the next couple of years. Grupo Senda's ratings also incorporate the company's exposure to foreign exchange risk, as 90% of its revenues are in Mexican pesos and approximately 70% of its debt is denominated in U.S. dollars. The 'B/RR4' ratings on the company's public debt reflect average recovery prospects given default. The ratings also incorporate industry-related risks such as seasonal fluctuations in passengers, cyclicality risk affecting the personnel segment, and volatile fuel costs. Positively, the company benefits from the importance of bus transportation within Mexico, which results from income constraints that limit the ability of many people to use more expensive alternative means of transportation, such as automobiles or airlines. KEY RATING DRIVERS Stable Operational Results, EBITDA Margin at 24%: Grupo Senda has maintained stable operating performance for the past three years due to its management of bus capacity levels. Positively, this stability has occurred against the wave of violence affecting several Mexican states. On a consolidated basis, Grupo Senda's total bus kilometers (247 thousand bus kilometers) declined 2.1% during the last 12 month (LTM) period ended on March 31, 2013, compared with the same period ended in March 2012 (252 thousand bus kilometers). As of March 31, 2013, the company's total fleet was composed of 2,283 units, which represents a decline of 16% versus the company's total units as of March 31, 2012. Grupo Senda's cash flow generation, measured by EBITDA, totaled MXN813 million, MXN919 million and MXN924 million during 2011, 2012 and the LTM ended March 31, 2013, respectively. Margins during this period remained relatively stable at 22.2% in 2011, 23.8% in 2012 and 23.7% in 2013, respectively. The company has two main business units, the passenger and the personnel business units. These units have EBIT margins of around 15%. The former unit represents 75% of the company's total revenues. The company's revenue structure is not anticipated to materially change during 2013. Gross Leverage Expected Around 3.0x: Grupo Senda's gross leverage, measured by total debt/EBITDA ratio, continued improving during the LTM ended March 31, 2013. The company's gross leverage was 3.0x as of March 31, 2013, which represents a decline from 3.4x and 3.6x during the prior comparable periods. The ratings factor in the expectation that the company will maintain a stable gross leverage ratio of around 3.0x during 2013. The company maintained a similar debt structure during the last few years. Total debt was MXN2,786 million (USD232 million) as of March 31, 2013. Grupo Senda's debt is primarily composed of corporate bonds (USD150 million), financial leases (MXN700 million), and short-term facilities with local banks (MXN133 million); and short-term papers (MXN110 million). The company' cost of funding remains high at 12.4% during the LTM. Grupo Senda's USD150 million corporate bonds, which represent approximately 67% of the company's total debt, have an interest rate of 10.5%. Weak Liquidity Remains a Rating Constrain: Grupo Senda's cash position remains weak and the company continues to remain highly dependent upon its banks to rollover its short- term debt obligations. As of March 31, 2013, Grupo Senda had MXN213 million of consolidated cash and marketable securities and MXN489 million of debt due in 2013 and MXN160 million of debt due in 2014. The company's cash position represents 5.5% of its LTM revenues. In addition, the company faces the maturity of its USD150 million bond issuance due September 2015. The company is expected to complete a major refinancing in the short term to improve its debt payment schedule. A capital increase is not considered at this time in the company's base scenario. The execution of a major refinancing would be viewed in general as a positive credit factor; its impact on the company's IDRs and debt ratings would also depend upon an improvement in its liquidity position and debt structure. Limited FCF Generation: The company's FCF generation remains low relative to its upcoming debt obligations. During the LTM ended March 31, 2013, Grupo Senda's FCF after capex was slightly positive at MXN58 million. This level of FCF represents 27% and 2% of the company's short- term and total debt obligations as of March 31, 2013. The company's FCF calculation for the LTM ended March 31, 2013, considers cash flow from operations - after interest paid - of MXN289 million less capital expenditures of MXN231 million. Factors that limited the company's FCF generation during the LTM ended March 31, 2013 were the increase in working capital needs by MXN174 million, as a result of an increase in account receivables by MXN136 million, and an increase in capital expenditures. During 2013, the company's FCF generation is expected to remain limited due to high capital expenditures related to fleet renewal. The company's capex during 2012 was MXN157 million and it is expected to increase to around MXN430 million in 2013. The company's FCF margin (FCF/revenues) is expected to be slightly positive (low single digit margin). RATING SENSITIVITIES: Considerations that could lead to a positive rating action (Rating or Outlook) Fitch would view as a positive to credit quality some combination of the following factors: improvement in FCF generation, lower financing costs, significant reduction in short-term debt levels - above expectations incorporated in the ratings - coupled with solid liquidity. Considerations that could lead to a negative rating action (Rating or Outlook) A negative rating action could be triggered by a deterioration of the company's credit protection measures due to sizeable negative FCF driven by poor operational results and/or unexpected capex levels funded with short-term debt. Expectations by Fitch of total debt to EBITDA being consistently at or beyond 4.5x would likely result in downgrade. Increasing competition followed by the return to discounted-price practices, as a key component of the company's business strategy to gain market share, would also likely result in a negative rating action. NII HOLDINGS: Moody's Cuts CFR to B3 on Declining Performance ------------------------------------------------------------- Moody's Investors Service downgraded the corporate family rating of NII Holdings Inc. to B3 from B2. The downgrade reflects the company's heightened leverage, declining operating performance, and the high execution risk related to the company's ongoing 3G network investment cycle. Operating performance will likely remain weak as the company invests heavily into its 3G network upgrade. Also, increasing price competition and depreciating local currencies are exacerbating NII's challenges. Moody's has assigned a B2 rating to NII International Telecom S.C.A.'s proposed senior unsecured notes. The proposed notes will be used to fund the repayment of the company's Mexico bank loan (unrated) and the remaining net proceeds to repay a portion of one of its Brazil bank loans (unrated). Moody's has also downgraded all senior unsecured notes held at NII Capital Corp. to Caa2 from Caa1. NII's speculative grade liquidity (SGL) rating was affirmed at SGL-1. The outlook is stable. Moody's has taken the following rating actions: NII Holdings, Inc. Corporate Family Rating, downgraded to B3 from B2 Probability of Default Rating, downgraded to B3-PD from B2-PD Outlook, changed to Stable from Negative NII International Telecom S.C.A. Proposed Senior Unsecured Notes, assigned B2 (LGD3, 43%) $900 Million Senior Unsecured Notes due 2019, B2 (LGD3, 43%) from B2 (LGD3, 49%) NII Capital Corp. $800 Million Senior Unsecured Notes due 2016, Caa2 (LGD5, 80%) from Caa1 (LGD5, 79%) $500 Million Senior Unsecured Notes due 2019, Caa2 (LGD5, 80%) from Caa1 (LGD5, 79%) $1,450 Million Senior Unsecured Notes due 2021, Caa2 (LGD5, 80%) from Caa1 (LGD5, 79%) Ratings Rationale: The downgrade of NII's corporate family rating to B3 from B2 reflects Moody's view that leverage will remain well above 6.0 times for the foreseeable future and consolidated EBITDA will continue to decline through at least the first half of the year, due primarily to continuing subscriber losses in Brazil, NII's largest market. Increasing price competition and weak local currencies will further pressure margins and operating cash flow. Finally, significant capital spending on broadband deployment (3G) designed to improve the company's product offerings will lead to a fairly significant drain of the company's cash balances during 2013. Cash balances could continue to decline beyond the first half of 2014 if execution of the new business plan is less than flawless. A tower sale, which is expected to occur in 2013, would improve the company's liquidity but would increase debt due to the resulting tower leases. Without considering the impact of a tower sale and leaseback, Moody's expects NII's leverage (Debt to EBITDA, Moody's adjusted) will increase to 7.5 times in 2013 from 6.5 times LTM to March 31, 2013. NII Holding's B3 corporate family rating reflects its small scale, heightened leverage, the increasingly competitive environment in which it operates as well as the capital intensity of the wireless industry. The presence of substantially larger, better funded competitors capable of disrupting NII's niche market position together with the sovereign, financial, operating and event risk inherent in NII's Latin American markets also constrain the rating. The rating is supported by NII's still good liquidity and its base of recurring revenues. Operational missteps and delays in deploying the critical 3G network, combined with weaker local currencies and competitive pressure on service pricing have led to margin compression and dramatically higher leverage. Nevertheless, exposure to the large and expanding markets in Mexico and Brazil offer an opportunity for healthy earnings and cash flow growth if the company is able to successfully transition to a premium wireless broadband provider. Moody's believes that NII has addressed the network deployment delays it encountered in 2012 and is making solid progress with its network deployment plans in Brazil and Mexico. Under Moody's Loss Given Default Methodology, the Caa2 rating on NII Capital Corp.'s senior unsecured notes reflects both the overall probability of default of NII, to which Moody's assigns a probability of default rating of B3-PD, and the senior structured ranking of NII International Telecom S.C.A.'s B2 rated senior unsecured notes. The assessment also reflects the significant liabilities, both debt and non-debt, held at NII's operating companies and Moody's expectation that these liabilities will not increase materially (other than the tower sale-leaseback) in the future even though they provide a currency hedge in addition to offering attractive economics. Moody's does note that Moody's expects NII will continue to draw down on its equipment financing facilities located at Nextel Brazil, Nextel Mexico and Nextel Chile. NII's SGL-1 liquidity rating primarily reflects the company's large cash balances. NII had approximately $1.9 billion in cash and short-term investments as of March 31, 2013 (about 85% is in $$) which exceeds the level required to fund 2013 operations and meet upcoming maturities. Included in Moody's SGL analysis is the sale of the company's Nextel Peru operations to Entel for about $400 million. The company expects this transaction to close later this year and to provide NII with additional liquidity for its capital program. The company is also in the process of executing a tower sale leaseback transaction related to select towers in Brazil and Mexico, which would also boost liquidity. NII is targeting to reach an agreement by the end of 2Q'13. NII does not maintain a revolving credit facility, but does utilize a wide array of local funding in the markets in which it operates, including about $480 million available through equipment financing facilities in Brazil, Mexico and Chile. There are no significant debt maturities scheduled until 2016, when $800 million of NII Capital Corp senior unsecured notes mature. The stable outlook reflects the company's current strong liquidity position, which will further be supported by its expected sale of Nextel Peru and its anticipated tower sale leaseback transaction. While an upgrade is unlikely in the near-term, positive rating pressure could develop if NII executes flawlessly and is likely to sustain Debt to EBITDA below 6.0 times while generating positive free cash flow. Moody's could lower the company's ratings if subscriber growth stalls, if there are further operational missteps such as delays in 3G network deployment, if churn increases materially or if EBITDA margin erosion is likely to persist throughout 2014. These developments, or a deterioration in liquidity, which could be caused by a failure to realize the Nextel Peru sale and/or the tower sale leaseback transaction, would put additional pressure on the rating. The principal methodology used in this rating was the Global Telecommunications Industry Methodology published in December 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. SU CASITA: Fitch Downgrades Rating on Class A Notes to 'CCC' ------------------------------------------------------------ Fitch Ratings has taken the following rating actions on Su Casita Trust's two residential mortgage back securities (RMBS) sponsored by Hipotecaria Su Casita, S.A. de C.V., SOFOM, E.N.R. (Su Casita): Class A Floating Rate Notes due 2035 -- Long-term rating downgraded to 'CCCsf' from 'B-sf' and to 'CCC(mex)vra' from 'B+(mex)vra'; -- Unenhanced long-term rating downgraded to 'CCCsf' from 'B-sf' and simultaneously withdrawn. Class B UDI-Indexed Notes due 2035 -- National long-term rating affirmed at 'D(mex)'. KEY RATING DRIVERS The rating actions on the class A notes reflect the transaction's intrinsic performance, reduced organic credit protection, deteriorated asset quality metrics, consistent exposure to liquidity risk and expected compression on recoveries for non- performing loans and Real Estate Owned Assets (REOs). The rating affirmation of the class B notes considers the tranche's structural subordination to class A and its intermittent default on interest payments which Fitch attributes to high liquidity risk related to the transaction's dual waterfall. As of the April 2013 distribution date, class A overcollateralization (excluding +90 days delinquent loans) stands at -45% and -36% when excluding +180 days delinquent loans. Both levels negatively compare with those observed 12 months ago which were -36% and -27%, respectively. Loans delinquency ratios are high albeit stabilizing. As of the April 2013 distribution date, +90 days delinquent loans represent 24% of their original loan balance and 46% of their aggregate outstanding balance. RATING SENSITIVITIES Class A's ratings could be upgraded if organic credit protection recovers and liquidity risk is mitigated to reduce exposure to short-lived defaults. Ratings could be downgraded further if loan collateral continues deteriorating or recoveries are weaker than expected. When stressing its cashflow model by higher default probabilities, Fitch could expect the exposure to intermittent defaults on interest payments on the class A and class B notes to increase; however, recovery estimates under these scenarios and as of this date, are deemed to be in excess of 95%. Current assigned ratings reflect the intrinsic performance of the securitized mortgage loan portfolio, which is, the main payment source for both rated notes. Fitch's ratings do not address any external credit protection provided by a third party not rated by Fitch. Therefore, the agency is withdrawing the unenhanced class A rating. =========== P A N A M A =========== BANCO BHD: Fitch Affirms Viability Rating at 'b' ------------------------------------------------ Fitch Ratings has affirmed Banco BHD (BHD) and its related entities' BHD Valores Puesto de Bolsa (BHD Valores) and BHD International Bank (Panama) - BHDIB ratings. The Rating Outlook is Stable. KEY RATING DRIVERS BHD- IDRs, VRs, SUPPORT AND NATIONAL RATING BHD viability rating (VR) drives its long-term Issuer Default Rating (IDR). The bank's VR reflects its reliable strategy, resilient profitability, healthy asset quality, adequate capitalization and low liquidity risk. The ratings also consider BHD's weak efficiency ratios and a less diversified income structure compared to regional peers. Furthermore, BHD's ratings are constrained by the sovereign's ratings. In Fitch's view, an improvement in the Dominican operating environment could enhance the bank's financial profile. Like other banks in Dominican Republic, BHD's profitability declined slightly as sizable trading gains and a resilient net interest margin did not cover higher operational costs affected by the earning assets tax of 1%. Nevertheless, the bank's annualized ROAA reached 2.95% in 2012, comparing favorably with domestic peers. Economic deceleration, in part due to the negative effects of the recently approved fiscal reform, is a challenge to preserving the bank's good financial performance. In Fitch's view, BHD's business mix, resilient interest margin, moderate credit growth and continued efforts to improve efficiency levels, will underpin the bank's resilient profitability ratios over the medium term, based on the strength of its balance and the management experience. BHD's loan quality metrics have remained relatively stable and better than local market averages, based on the bank's customer knowledge and enhanced credit risk tools and policies. Although loan quality metrics slightly deteriorated in 2012 reflecting the deterioration of the small and medium enterprise (SME) portfolio, Fitch expects asset quality ratios to continue comparing favorably to domestic peers. In Fitch's opinion, the bank has pursued very conservative provisioning policies, allowing it to post consistently ample loan loss reserve coverage. BHD's capital ratios remain adequate in light of the bank's risk profile, based on sound profitability and moderate cash dividend payouts. In Fitch's opinion, the Fitch core capital to risk- weighted assets ratio should stabilize around 16%, in line with the bank's average level over the past few years. Additionally, this ratio is higher than the market average and comparable with the median of similarly rated (VR of 'b-/b/b+') international peers. Furthermore, Fitch views this level as conservative considering the bank's comparably higher loan loss reserve coverage. Fitch expects BHD to preserve its good liquidity levels shown over recent years, backed by a diversified funding base and a liquid investment portfolio. While BHD's liquidity profile is sufficient for its market, Fitch cautions that the majority of the bank's liquid holdings are in Dominican public sector instruments. BHD is one of the main players in the Dominican banking system. However, in the event the bank experiences difficulties, support, although possible, cannot be relied on given the Dominican Republic's low credit ratings. KEY RATING DRIVERS - BHD Valores and BHDIB- NATIONAL RATING BHD Valores and BHDIB ratings reflect the operational and financial support provided by BHD and its sole shareholder Centro Financiero BHD (CFBHD). In Fitch's view, both entities are core for CFBHD, as they are key and integral part of its business and provide some financial products to core clients. Furthermore, a clear commercial identification among these entities with BHD and CFBHD, and the reputation risk at which they would be exposed in the case of eventual troubles at these entities results in a high probability of direct or indirect support by BHD and CFBHD, should it be required. RATING SENSITIVITIES - BHD An upgrade of the sovereign's ratings could lead to an upgrade of BHD's ratings, if the bank sustains its current strong financial performance and adequate capitalization. Deterioration in the bank's capital metrics - such as Fitch core capital to risk- weighted assets ratio below 8% - together with asset quality deterioration could pressure creditworthiness. RATING SENSITIVITIES - BHD VALORES and BHDIB An upgrade in BHD's ratings could lead to an upgrade of BHD Valores and BHDIB. A negative change in the capacity or propensity of CFBHD to provide support could pressure creditworthiness. PROFILE BHD is the third largest commercial bank in the Dominican Republic, with a 12.5% market share of total system assets as of December 2012. BHD is 98% owned by CFBHD and is its largest subsidiary. Other subsidiaries of CFBHD are BHD Valores, a brokerage company with a growing investment banking business in the Dominican market; BHDIB, a bank which operates under an international license in Panama and offers USD denominated financial services to Dominicans; and other minor financial entities. PyME BHD, a bank specializing in small business loans in the Dominican Republic, was merged with BHD during 2012. Considering the aforementioned factors, Fitch has affirmed the following ratings: Banco BHD: -- Foreign and local currency long-term IDR at 'B'; Stable Outlook; -- Foreign and local currency short term IDR at 'B'; -- Viability Rating at 'b'; -- Support at '5'; -- Support Floor at 'NF'; -- Long-term National rating at 'AA-(dom)'; Stable Outlook; -- Short-term National rating at 'F1+(dom)'. BHD Valores Puesto de Bolsa: -- Long-term National rating at 'AA-(dom)'; Stable Outlook; -- Short-term National rating at 'F1+(dom)'; -- Long-term National senior unsecured debt rating at 'AA-(dom)'; -- Short-term National senior unsecured debt rating at 'F1+(dom)'. BHD International Bank (Panama): -- Long-term National rating at 'AA-(dom)'; Stable Outlook; -- Short-term National rating at 'F1+(dom)'. Following BHD's merger with its related entity Pyme BHD, Fitch has affirmed and withdrawn the following ratings: Banco de Ahorro y Credito PyME BHD: -- Long-term National rating at 'AA-(dom)', rating withdrawn; -- Short-term National rating at 'F1+(dom)', rating withdrawn. =============== P A R A G U A Y =============== * PARAGUAY: IDB Approves US$122 Million Loan -------------------------------------------- The Inter-American Development Bank (IDB) approved a $122 million loan to Paraguay to finance the second phase of a program to pave integration corridors and rehabilitate and maintain road network. This will help improve the competitiveness of the productive sector and the country's economic and social integration. "Paraguay is a landlocked country whose economic and productive structure is sustained by the agricultural and agribusiness sectors, and where foreign trade must travel considerable distances," said IDB project team leader Vera Lucia Vicentini. "This program will help reduce transport distances and costs, strengthen internal communication and territorial integration, therefore increasing the country's competitiveness. The program aims to pave, rehabilitate and maintain several major corridors in the national road network in the eastern region of the country, with the specific objectives to reduce transport costs and improve accessibility, walkability and safety, while preserving the country's highway assets. Funding for the first phase of the program was approved by the Bank in December 2006 and in the second phase, the goal is that the road rehabilitation and paving will help reduce travel times by more than 65 percent. This lowers vehicle operating costs by 50 percent, improves mobility and decreases the Accident Severity Index by 10 percent. The program has among its components, civil works projects that include the paving of 130 kilometers of Route 8 and 13, rehabilitation and maintenance of 1,193 kilometers of the national primary road network (Routes 3, 5, 6 and 10), and the maintenance of 150 kilometers of roads that were rehabilitated in the first phase of works on Route 8, 10 and 13, as well as road safety work at critical points. Another component includes resources for socio-environmental compensation including expropriations and management support and titling, support to local governments, environmental and road safety education and the protection of natural resources. It also allocates resources to support productive farmers' organizations and indigenous communities and their organizations, land acquisition, consolidation of infrastructure and agricultural production support. The $122 million IDB loan consists of $107.8 million from the ordinary capital and $14.2 million from the Fund for Special Operations. Of the $107.8 million from the ordinary capital, $51.2 million has a 23-year term with a grace period of 7.5 years and an interest rate based on LIBOR. The remaining $56.6 million has a 30-year term with a grace period of 6 years with a fixed interest rate. The $14.2 million from the FSO have a 40-year term with a 40-year grace period and an interest rate of 0.25 percent. The program has $78 million in local counterpart financing. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: Records Estimated Losses of US$70 Mil. in 2012 ------------------------------------------------------------------ Caribbean360.com reports that Trinidad and Tobago Finance Minister Larry Howai said Caribbean Airlines Limited recorded losses estimated at US$70 million in 2012. Mr. Howai told the Senate that the figure does not include the US$40 million in fuel subsidy to the airline even though he insists that the airline remains solvent, according to Caribbean360.com. "Government has made certain provisions for the airline to restructure its balance sheet. One of the things they have done is to use a lot of their cash to actually do acquisitions of the planes and I have instructed a new restructuring of the balance sheet where you would need to borrow and replace the cash which was being used. . . . It's better to leverage the assets rather than leave it unencumbered but having the company incurring significant debt obligations," the report quoted Mr. Howai as saying. However, the report notes that opposition legislator Dr. Lester Henry said he was "astounded that the minister could describe as solvent a company which cannot cover its costs and no money in the bank". The report points out the Mr. Howai insisted that while the company may be cash-strapped but it had assets. The report relays that Mr. Howai said the preliminary unaudited figures showed US$32 million of the $70 million loss was incurred by the Air Jamaica route, with the London route also accounting for a major part of the losses. Caribbean Airlines, which began operations in 2007, acquired Air Jamaica in 2011. The Jamaican Government has a 16% stake in the Trinidadian air carrier. "On the Jamaica route, it has cut flights to Jamaica and on the London route, it has terminated the wet-leasing arrangement," Mr. Howai said, adding he expects to "significantly reduce the losses of the airline during this year," the report relays. Mr. Howai, the report relates, said the airline used a lot of its cash in the acquisition of planes and that he had instructed that a new restructuring of the balance sheet be done where the airline would have to borrow and replace the cash which had previously been used. The report discloses that Mr. Howai said the US$40 million fuel subsidy applies to Air Jamaica and CAL. Mr. Howai said it was the same as last year and would end in 2015, the report says. The report relates that Mr. Howai said government had received from CAL a restructuring outline to deal with the losses, adding "we also intend to introduce significant restructuring of a lot of the routes and we have started that process with Air Jamaica and the Jamaican route. Mr. Howai incurred a loss of $32 million on those routes, the report says. A second major area of cost for the airline was the London route, the report relays. The report adds that Mr. Howai said CAL was leasing two sets of aircraft which contributed significantly to the losses and those losses have been terminated. This will significantly reduce the overall loss, he added. In 2011, CAL had recorded losses of US43.7 million. About Caribbean Airlines Caribbean Airlines Limited -- http://http://www.caribbean- airlines.com/ -- provides passenger airline services. It also specializes in the shipment of fresh cut flowers and packaged meats, hatching eggs, chocolates, fruits and vegetables, frozen and chilled fish, vaccines, newspapers, and magazines within the Caribbean, as well as to North America and Europe. In 2010, Port of Spain and Kingston agreed to a deal that allowed the Jamaica government to own 16% of CAL as part of the conditions for CAL taking over the lucrative routes of Air Jamaica. The deal also allows for Trinidad and Tobago agreeing to a US$300 million transition plan for CAL to acquire and operate six Air Jamaica aircraft and eight of its routes. * * * As reported in the Troubled Company Reporter on March 21, 2012, RJR News said that Caribbean Airlines Limited owes nearly US$30 million to Trinidad and Tobago's fuel provider National Petroleum. Trinidad Express said CAL enjoys a seven-day credit facility for aviation fuel from the company, according to RJR News. However, the report related that the airline has not been able to pay the full amount when invoiced and instead has been issuing partial payments to sustain the account. RJR News noted that Trinidad Express reported that the arrears were built up as no payments have been made despite an attractive fuel subsidy which the airline has enjoyed since it began operations in January. =============== X X X X X X X X =============== * BOND PRICING: For the Week May 13 to May 17, 2013 --------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- ARGENT-$DIS 8.28 12/31/2033 USD 56.5 ARGENT-$DIS 8.28 12/31/2033 USD 57.9 ARGENT-$DIS 8.28 12/31/2033 USD 57.9 ARGENT-$DIS 8.28 12/31/2033 USD 58.5 ARGENT-$DIS 8.28 12/31/2033 USD 58.1 ARGENT-PAR 1.18 12/31/2038 ARS 50.4 ARGENT-DIS 7.82 12/31/2033 EUR 45 ARGENT-DIS 7.82 12/31/2033 EUR 57.6 ARGENT-DIS 7.82 12/31/2033 EUR 57.3 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 ARGNT-BOCON PRE9 2 3/15/2014 ARS 41.8 BANCO MACRO SA 9.75 12/18/2036 USD 73.8 BANCO MACRO SA 9.75 12/18/2036 USD 71 BANCO MACRO SA 9.75 12/18/2036 USD 74.1 CAPEX SA 10 3/10/2018 USD 74.4 CAPEX SA 10 3/10/2018 USD 74.5 CIA LATINO AMER 9.5 12/15/2016 USD 64 CITY OF BUENOS 3.98 3/15/2018 USD 68.6 EMP DISTRIB NORT 9.75 10/25/2022 USD 49.5 EMP DISTRIB NORT 10.5 10/9/2017 USD 95 EMP DISTRIB NORT 9.75 10/25/2022 USD 46.1 METROGAS SA 8.875 12/31/2018 USD 66.8 METROGAS SA 8.875 12/31/2018 USD 68.1 PROV BUENOS AIRE 9.625 4/18/2028 USD 65.1 PROV BUENOS AIRE 9.625 4/18/2028 USD 65.3 PROV BUENOS AIRE 9.375 9/14/2018 USD 69.8 PROV BUENOS AIRE 9.375 9/14/2018 USD 69.8 PROV BUENOS AIRE 10.88 1/26/2021 USD 71.4 PROV BUENOS AIRE 10.88 1/26/2021 USD 71.5 PROV DE FORMOSA 5 2/27/2022 USD 63.6 PROV DE MENDOZA 5.5 9/4/2018 USD 74.3 PROV DE MENDOZA 5.5 9/4/2018 USD 74.6 PROV DEL CHACO 4 12/4/2026 USD 27.8 PROV DEL CHACO 4 11/4/2023 USD 55.3 TRANSENER 9.75 8/15/2021 USD 48 TRANSENER 9.75 8/15/2021 USD 45.1 TRANSENER 8.875 12/15/2016 USD 47.5 BRAZIL ------ BANCO BONSUCESSO 9.25 11/3/2020 USD 70.6 BANCO BONSUCESSO 9.25 11/3/2020 USD 70 CAYMAN ISLAND ------------- BCP FINANCE CO 4.239 EUR 46.7 BCP FINANCE CO 5.543 EUR 44.7 BES FINANCE LTD 4.5 EUR 63.2 BES FINANCE LTD 5.58 EUR 69.2 CHINA FORESTRY 10.25 11/17/2015 USD 53 CHINA FORESTRY 10.25 11/17/2015 USD 47.4 EMER PLANT HLD 6 1/30/2020 USD 67.5 ERB HELLAS CAYMA 9 3/8/2019 EUR 22 ESFG INTERNATION 5.753 EUR 57.3 GOL FINANCE 8.75 USD 70.5 GOL FINANCE 8.75 USD 69.5 HIDILI INDUSTRY 8.625 11/4/2015 USD 75.8 HIDILI INDUSTRY 8.625 11/4/2015 USD 75.6 JINKOSOLAR HOLD 4 5/15/2016 USD 57.5 RENHE COMMERCIAL 13 3/10/2016 USD 60 RENHE COMMERCIAL 11.75 5/18/2015 USD 66.5 RENHE COMMERCIAL 11.75 5/18/2015 USD 66.5 RENHE COMMERCIAL 13 3/10/2016 USD 61.9 CHILE ----- ALMENDRAL TEL 3.5 12/15/2014 CLP 43.9 EMPRESA METRO 5.5 7/15/2027 CLP 3.39 TALCA CHILLAN 2.75 12/15/2019 CLP 66 PUERTO RICO ----------- BANCO SANTANDER 6.1 6/1/2032 USD 34.8 BANCO SANTANDER 6.3 6/1/2032 USD 36 PUERTO RICO CONS 6.5 4/1/2016 USD 67.6 VENEZUELA --------- PETROLEOS DE VEN 5.5 4/12/2037 USD 68.4 PETROLEOS DE VEN 5.375 4/12/2027 USD 70.2 *********** 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 * * *