/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130926.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, September 26, 2013, Vol. 14, No. 191 Headlines A R G E N T I N A CABLEVISION SA: Moody's Assigns B3 Rating to $522MM Notes B A H A M A S ULTRAPETROL (BAHAMAS): B3 CFR Unchanged Over $25MM Add-On Notes B R A Z I L BANCO BONSUCESSO: Moody's Downgrades Deposit Ratings to B2 OGX PETROLEO: Owner Pushes for More Asset Sales to Raise Cash OGX PETROLEO: Hires Lazard Limited as Financial Adviser C A Y M A N I S L A N D S ALCUDIA LEASING: Commences Liquidation Proceedings AM GEN 1998-1: Commences Liquidation Proceedings ARADY 1: Creditors' Proofs of Debt Due Oct. 15 ARADY 2: Creditors' Proofs of Debt Due Oct. 15 GULF HEDGE: Commences Liquidation Proceedings IBA SERVICES: Commences Liquidation Proceedings KAWAJIMA: Creditors' Proofs of Debt Due Oct. 15 MAISHIMA FOUR: Creditors' Proofs of Debt Due Oct. 15 MYWEATHER CAYMAN: Creditors' Proofs of Debt Due Oct. 15 ODIN CDO I: Commences Liquidation Proceedings OSAKA TWO: Creditors' Proofs of Debt Due Oct. 15 SUNSHINE ASSETS: Creditors' Proofs of Debt Due Nov. 12 TAKATSUKI TWO: Creditors' Proofs of Debt Due Oct. 15 TOSU FOUR: Creditors' Proofs of Debt Due Oct. 15 ZAMA ONE: Creditors' Proofs of Debt Due Oct. 15 C O S T A R I C A BANCO DE COSTA RICA: Moody's Changes Outlook to Negative J A M A I C A ALCOA INC: Looks to Sell its France and Spain Operations SAGICOR LIFE: Launches X Funds * JAMAICA: S&P Raises Sovereign Rating to 'B-'; Outlook Stable * JAMAICA: Instability of Currency Blamed for Spike in Gas Rate M E X I C O SANLUIS RASSINI: Fitch Affirms 'B' FC Issuer Default Rating P E R U * PERU: To Get US$25MM IDB Loan to Advance Climate Change Program S A I N T L U C I A * ST LUCIA: Businesses Call on Government for Vat Reduction X X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= CABLEVISION SA: Moody's Assigns B3 Rating to $522MM Notes --------------------------------------------------------- Moody's Investors Service has assigned a B3 Global Scale rating to Cablevision S.A.'s $522 million outstanding notes. At the same time Moody's assigned a first-time Corporate Family Rating of B3 on its Global Scale to Cablevision. The outlook is Negative. Ratings Rationale: "The B3 rating principally reflects Cablevision's position as the major player in the local media industry, with the largest base of subscribers and an a dominant market position in the Pay TV industry as well as broadband services" said Moody's VP-Senior Analyst Veronica Amendola. The ratings also reflect Cablevision's strong credit metrics for its rating category and the company's advantage, derived from having presence in the most populated and profitable areas of the country. The B3 rating is mainly constrained by Cablevision's highly changing environment and the high regulatory risk and political interference in the local media industry, which results in an ongoing legal struggle that could change the whole regulatory framework for the Media industry, affecting Cablevision's interests. In addition, the ratings reflects Cablevision's current modest liquidity profile and the company's currency mismatch with most of its debt denominated in foreign currency, while its cash flows are entirely generated in local currency. After the consolidation of Multicanal and Cablevision in 2006, the company has been able to generate significant synergies that positively impacted its profitability and has had the ability to strongly position the company among their competition which includes other local cable companies, DTH service providers and telcos. Cablevision has improved its credit profile, reducing debt to EBITDA from 3.3x as of December 2007 to 1.5x as of last twelve months ended June 2013. The negative rating outlook for Cablevision is in line with Moody's negative outlook for the Argentine government's B3 rating. The negative outlook for Cablevision reflects Moody's view that the creditworthiness of the company cannot be completely de-linked from the credit quality of the Argentine government and thus their ratings need to closely reflect the risk that the company shares with the sovereign. Moody's believes that a weaker sovereign has the potential to create a ratings drag on companies operating within its borders, and therefore it is appropriate to limit the extent to which these issuers can be rated higher than the sovereign, according to Moody's Cross Sector Rating Methodology "How Sovereign Credit Quality May Affect Other Ratings" published on February 13, 2012. While unlikely at this juncture, rating could experience upward pressure if Argentina's environment improves significantly. In addition, an upgrade of the ratings could result from a continued strengthening of Cablevision's revenues during 2013 while improving its operating margins and profitability. Additionally, a more predictable outlook for economic activity in Argentina would be important for a ratings upgrade. Moody's cautions that a rating downgrade of the sovereign would likely result in negative rating actions for Cablevision in order to maintain the issuers' current notching gap relative to the sovereign in the absence of any significant change in their underlying credit quality. Quantitatively, a downgrade could result from a drop in Cablevision's EBIT margin to below 8% or a significant increase in leverage, with debt to EBITDA above 4 times. Indications of a weakening market share in the domestic cable market could also place pressure on the ratings, especially if Cablevision is unable to remain among the leader cable and internet players. The principal methodology used in this rating was the Global Pay Television - Cable and Direct-to-Home Satellite Operators, published in April 2013. Headquartered in Buenos Aires, Argentina, Cablevision is a leading provider of Pay TV and Internet Services in Latin America based on the amount of subscriptions. Mainly focused on the City of Buenos Aires, cities in Greater Buenos Aires, 12 provinces, and Uruguay, Cablevision is dedicated to the installation, operation and broadcasting of data transmission through cable and video. Showing an ongoing expansion, the company reports total revenues of $ 1.74 billion for the twelve month period ended on June 30, 2013. ============= B A H A M A S ============= ULTRAPETROL (BAHAMAS): B3 CFR Unchanged Over $25MM Add-On Notes --------------------------------------------------------------- Moody's Investors Service said that Ultrapetrol (Bahamas) Limited's $25 million add-on to its existing $200 million 8.875% First Preferred Ship Mortgage Notes due 2021 will not impact the company's B3 Corporate Family Rating and senior secured notes rating, SGL-2 speculative grade liquidity rating, or stable ratings outlook. Ultrapetrol (Bahamas) Limited, headquartered in Nassau, Bahamas, is a diverse international marine transportation company. The company operates in three segments: River, Offshore Supply, and Ocean. Last twelve months ended June 30, 2013 revenues totaled $369 million. =========== B R A Z I L =========== BANCO BONSUCESSO: Moody's Downgrades Deposit Ratings to B2 ---------------------------------------------------------- Moody's Investors Service has lowered Banco Bonsucesso S.A.'s baseline credit assessment (BCA) to b2, from b1, and downgraded the bank's long-term global local and foreign currency deposit ratings to B2, from B1. At the same time, Moody's downgraded the long-term foreign-currency subordinated debt rating to B3, from B2, and the Brazilian national scale deposit ratings to Ba1.br and BR-4, from Baa3.br and BR-3, long- and short-term, respectively. Moody's affirmed Bonsucesso's bank financial strength at E+, with a stable outlook, and the short-term global local and foreign currency deposit ratings at Not Prime. Moody's maintained the negative outlook on all deposit and debt ratings. The following ratings of Banco Bonsucesso were downgraded: Long-term global local-currency deposit rating: to B2 from B1, negative outlook Long-term foreign-currency deposit rating: to B2 from B1, negative outlook Long-term Brazilian national scale deposit rating: to Ba1.br from Baa3.br, negative outlook Short-term Brazilian national scale deposit rating: to BR-4 from BR-3 Long-term foreign-currency subordinated debt rating: to B3 from B2, negative outlook The following ratings of Banco Bonsucesso were affirmed: Bank financial strength of E+, stable outlook Short-term global local-currency deposit rating of Not Prime Short-term foreign-currency deposit rating of Not Prime Ratings Rationale: The downgrade of Bonsucesso's ratings reflects the weakening profitability metrics over the past 18 months, as intense competition within its core business of payroll-deductible loans has limited loan origination, at the same time that elevated delinquencies in the bank's commercial portfolio has led to high credit costs. Bonsucesso's historically low nonperforming loan ratios, characteristic of its focus on low-risk payroll loans, have trended upwards over the past years as the bank sought to increase lending to small and middle size companies (SME). Although exposure to the SME segment represented a modest 8% of the bank's loan portfolio in June 2013, related provisions went up significantly by 105% year-over-year, reflecting the asset quality deterioration caused by the recent economic slowdown that has hurt small companies the hardest. Moody's expects asset quality in the segment to remain weak, which will likely continue to pressure Bonsucesso's profitability. Moody's noted that Bonsucesso's ratings are constrained by the dependence on confidence-sensitive and expensive wholesale funding, including a reliance on special guaranteed deposits, which limits interest margins and growth potential. Moreover, as policy interest rates continue to rise, they will translate into higher cost of funding that will continue to affect the bank's profitability. To fend off competition in its core business, the inherent funding limitation and declining profitability, Bonsucesso is targeting the expansion of payroll credit cards and new products such as a pre-paid, multi-currency traveler card, which the bank expects will alleviate demands on funding and contribute fee income to its results. These efforts are still at early stages, and any result of this strategy is likely to happen only in the mid- to long- term. Moody's, therefore, views the bank's business shift as not providing sufficient support to earnings and internal capital generation. The negative outlook on the ratings incorporates Moody's view that Bonsucesso's profitability will remain challenged over the next quarters by the changing competitive dynamics in the payroll lending segment that hurt the bank's market position, combined with the scenario of soft economic activity, and rising interest rates, which will likely result in higher funding costs and pressure asset quality. The last rating action on Bonsucesso was on April 20, 2012, when Moody's downgraded Bonsucesso's bank financial strength to E+ from D-, long-term global local and foreign currency deposit ratings to B1 from Ba3, long-term foreign currency subordinated debt rating to B2 from B1, and Brazilian national scale deposit ratings to Baa3.br and BR-3 from A3.br and BR-2, long- and short-term, respectively. The outlook on all deposit and debt ratings was negative, while the outlook on the bank financial strength was stable. The principal methodology used in rating this bank was "Global Banks" published on May 31, 2013. 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. Banco Bonsucesso S.A. is headquartered in Belo Horizonte, Brazil. As of June 30, 2013, the bank had total assets of approximately R$3.5 billion ($1.6 billion) and equity of R$372 million ($168 million). OGX PETROLEO: Owner Pushes for More Asset Sales to Raise Cash ------------------------------------------------------------- Luciana Magalhaes and Emily Glazer writing for Daily Bankruptcy Review report that troubled Brazilian businessman Eike Batista is again pushing to sell a stake in the only viable exploration field controlled by his flagship oil firm, OGX Petroleo e Gas SA, as he moves to raise additional cash to try to save his indebted empire, according to a person familiar with the effort. As reported in the Troubled Company Reporter-Latin America on September 12, 2013, The Wall Street Journal said Mr. Batista has taken steps to sell assets of his industrial conglomerate as he seeks cash to keep his heavily indebted companies solvent. The report said Mr. Batista has lost the confidence of investors as his companies struggled to meet revenue forecasts after raising more than US$6 billion in share offerings and about US$11 billion in debt during the past seven years, when liquidity was abundant and the offerings were pitched as a way to ride Brazil's economic emergence. The report added that creditors were already disappointed that Mr. Batista has balked at fulfilling a 2012 commitment to provide an extra $1 billion in capital should it be needed at OGX. Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participaaoes S.A. is an independent exploration and production company with operations in Latin America. * * * As reported in the Troubled Company Reporter-Latin America on July 17, 2013, Moody's Investors Service downgraded OGX Petroleo e Gas Participaaoes S.A.'s Corporate Family Rating to Ca from Caa2 and OGX Austria GmbH's senior unsecured notes ratings to Ca from Caa2. The rating outlook remains negative. OGX PETROLEO: Hires Lazard Limited as Financial Adviser ------------------------------------------------------- Luciana Magalhaes and Emily Glazer writing for Daily Bankruptcy Review report that independent financial advisory firm Lazard Ltd. confirmed Sept. 24 that it has been hired by Brazilian oil company OGX Petroleo Participacoes SA. As reported in the Troubled Company Reporter-Latin America on September 12, 2013, The Wall Street Journal said Mr. Batista has taken steps to sell assets of his industrial conglomerate as he seeks cash to keep his heavily indebted companies solvent. The report said Mr. Batista has lost the confidence of investors as his companies struggled to meet revenue forecasts after raising more than US$6 billion in share offerings and about US$11 billion in debt during the past seven years, when liquidity was abundant and the offerings were pitched as a way to ride Brazil's economic emergence. The report added that creditors were already disappointed that Mr. Batista has balked at fulfilling a 2012 commitment to provide an extra $1 billion in capital should it be needed at OGX. Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participaaoes S.A. is an independent exploration and production company with operations in Latin America. * * * As reported in the Troubled Company Reporter-Latin America on July 17, 2013, Moody's Investors Service downgraded OGX Petroleo e Gas Participaaoes S.A.'s Corporate Family Rating to Ca from Caa2 and OGX Austria GmbH's senior unsecured notes ratings to Ca from Caa2. The rating outlook remains negative. ========================== C A Y M A N I S L A N D S ========================== ALCUDIA LEASING: Commences Liquidation Proceedings -------------------------------------------------- At an extraordinary meeting held on Sept. 12, 2013, the members of Alcudia Leasing Limited resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: David Dyer Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall Cricket Square, 171 Elgin Avenue Grand Cayman KY1-1104 Cayman Islands AM GEN 1998-1: Commences Liquidation Proceedings ------------------------------------------------ At an extraordinary meeting held on Sept. 12, 2013, the members of AM GEN 1998-1 Ltd resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: David Dyer Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall Cricket Square, 171 Elgin Avenue Grand Cayman KY1-1104 Cayman Islands ARADY 1: Creditors' Proofs of Debt Due Oct. 15 ---------------------------------------------- The creditors of Arady 1 are required to file their proofs of debt by Oct. 15, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 27, 2013. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands ARADY 2: Creditors' Proofs of Debt Due Oct. 15 ---------------------------------------------- The creditors of Arady 2 are required to file their proofs of debt by Oct. 15, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 27, 2013. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands GULF HEDGE: Commences Liquidation Proceedings --------------------------------------------- At an extraordinary meeting held on Sept. 12, 2013, the members of Gulf Hedge Portfolio 1 Limited resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: David Dyer Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall Cricket Square, 171 Elgin Avenue Grand Cayman KY1-1104 Cayman Islands IBA SERVICES: Commences Liquidation Proceedings ----------------------------------------------- On Sept. 5, 2013, the shareholder of IBA Services Ltd resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. Ronald Evan Tompkins is the company's liquidator. KAWAJIMA: Creditors' Proofs of Debt Due Oct. 15 ----------------------------------------------- The creditors of Kawajima are required to file their proofs of debt by Oct. 15, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 2, 2013. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands MAISHIMA FOUR: Creditors' Proofs of Debt Due Oct. 15 ---------------------------------------------------- The creditors of Maishima Four are required to file their proofs of debt by Oct. 15, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 2, 2013. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands MYWEATHER CAYMAN: Creditors' Proofs of Debt Due Oct. 15 ------------------------------------------------------- The creditors of Myweather Cayman, LLC are required to file their proofs of debt by Oct. 15, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 9, 2013. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands ODIN CDO I: Commences Liquidation Proceedings --------------------------------------------- At an extraordinary meeting held on Sept. 12, 2013, the members of Odin CDO I (Cayman Islands No.4) Limited resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: David Dyer Deutsche Bank (Cayman) Limited P.O. Box 1984, Boundary Hall Cricket Square, 171 Elgin Avenue Grand Cayman KY1-1104 Cayman Islands OSAKA TWO: Creditors' Proofs of Debt Due Oct. 15 ------------------------------------------------ The creditors of Osaka Two are required to file their proofs of debt by Oct. 15, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 2, 2013. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands SUNSHINE ASSETS: Creditors' Proofs of Debt Due Nov. 12 ------------------------------------------------------ The creditors of Sunshine Assets Limited are required to file their proofs of debt by Nov. 12, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 9, 2013. The company's liquidator is: Lion International Management Limited Craigmuir Chambers Road Town, Tortola British Virgin Islands c/o Mr. Philip C Pedro TAKATSUKI TWO: Creditors' Proofs of Debt Due Oct. 15 ---------------------------------------------------- The creditors of Takatsuki Two are required to file their proofs of debt by Oct. 15, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 2, 2013. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands TOSU FOUR: Creditors' Proofs of Debt Due Oct. 15 ------------------------------------------------ The creditors of Tosu Four are required to file their proofs of debt by Oct. 15, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 2, 2013. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands ZAMA ONE: Creditors' Proofs of Debt Due Oct. 15 ----------------------------------------------- The creditors of Zama One are required to file their proofs of debt by Oct. 15, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 2, 2013. The company's liquidator is: Gene Dacosta c/o Noel Webb Telephone: (345) 814 7394 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands ================== C O S T A R I C A ================== BANCO DE COSTA RICA: Moody's Changes Outlook to Negative -------------------------------------------------------- Moody's Investors Service has affirmed Banco de Costa Rica's baa3 standalone baseline credit assessment (BCA) and D+ bank financial strength rating (BFSR) and changed the outlook to negative, from stable. The bank's Baa3 and Prime-3 long and short term local currency deposit ratings were also affirmed and the outlooks were changed to negative from stable. At the same time, Moody's upgraded the bank's long and short term foreign currency deposit ratings to Baa3/Prime-3 from Ba1/Not Prime, and placed them on negative outlook, in line with the negative outlook on the local currency deposit ratings. Moody's also affirmed the bank's Baa3 foreign currency senior unsecured debt rating, changing the outlook to negative, from stable. The rating actions are in line with similar actions on Moody's Baa3 rating for the government of Costa Rica and the foreign currency country ceiling for deposits. The following ratings were affirmed, with the outlook changed to negative from stable: Standalone Bank Financial Strength Rating: D+ Long and short term local currency deposit ratings: Baa3 and Prime -- 3 Foreign currency senior unsecured debt rating: Baa3 The following ratings were upgraded: Long term foreign currency deposit rating: to Baa3 from Ba1, outlook changed to negative from stable Short term foreign currency deposit rating: to Prime-3 from Not Prime, outlook changed to negative from stable Ratings Rationale: Moody's said that the change in outlook to negative on BCR's ratings is in line with the change in outlook on the Baa3 government bond rating. Because of BCR's financial and business linkages with the Costa Rican government, including large securities holdings, and its predominantly domestic operations, the bank's standalone ratings are aligned with the government's risk, as reflected in the sovereign's Baa3 bond rating, and are effectively limited by that rating. BCR's Baa3 local and foreign currency deposit and debt ratings derive from its baa3 standalone credit assessment and incorporate Moody's assumption of full support from the government to reflect its 100% ownership, public policy mandate, and explicit guarantee of the bank's obligations under Article 4 of the Costa Rican Financial System Law. The negative outlook on the deposit and senior debt ratings is in line with the negative outlook on the standalone ratings. Moody's noted that BCR's standalone ratings reflect the bank's dominant franchise in both corporate and retail banking, its well managed and stable asset quality and superior local funding access aided by the government's guarantee. These characteristics are supported by BCR's solid tangible capitalization and proactive management that is highly focused on improving internal controls, risk management, and corporate governance. Key constraints to the standalone ratings are limitations to profitability due to relatively high operating leverage and a corporate tax rate of 30%, coupled with additional mandatory transfers to support government-sponsored programs in line with the bank's public policy mandate. The potential for asset quality deterioration in the event of an economic slowdown, particularly in light of its above average loan growth in recent years, and an increased emphasis on lending to small and medium-sized businesses is also a key risk factor, said Moody's. The last rating action on Banco de Costa Rica was on July 30 2013, when Moody's assigned a Baa3 foreign currency senior unsecured debt rating to the bank's issuance of $ 500 million in senior notes. Banco de Costa Rica was established in 1877 by the Costa Rican government and is the oldest financial institution in the country. It is the second largest bank, after Banco Nacional de Costa Rica, with market shares of 20% in loans and deposits. BCR reported total consolidated assets of $7.9 billion (CRC 3.9 trillion), equity of $778 million (CRC 389 billion) and six-month net income of $27.8 million (CRC 13.9 billion), as of June 30, 2013. Consolidated figures include those of BICSA (Ba1, stable), the bank's 51% Panamanian-based subsidiary. The principal methodology used in this rating was Global Banks published in May 2013. ============= J A M A I C A ============= ALCOA INC: Looks to Sell its France and Spain Operations -------------------------------------------------------- RJR News reports that U.S. aluminum company, Alcoa Inc., part owner of the Jamalco plant in Clarendon, is looking at selling its sole plant in France and two production sites in Spain. The announcement was made on Sept. 23. Alcoa, citing a company statement, said that to determine which path to follow and the means to optimize activity at the plants, it is exploring several options, including selling them, according to RJR News. The report relates that more than 700 workers are employed to the facilities. The report notes that the company said it was convinced the sites had potential, but given funding constraints, it was exploring if they would be more valuable to another owner. Alcoa owns 55 per cent of Jamalco Plant in Clarendon, Jamaica. The remaining 45 per cent is held by the government through Clarendon Alumina Partners. * * * As reported in the Troubled Company Reporter-Latin America on May 31, 2013, Moody's Investors Service downgraded the senior unsecured debt ratings of Alcoa Inc. to Ba1 from Baa3 and assigned a Ba1 Corporate Family Rating and a Ba1-PD Probability of Default Rating. Moody's confirmed the Ba2 preferred stock rating. At the same time, Moody's withdrew the company's Prime-3 commercial paper rating and assigned a Speculative Grade Liquidity Rating of SGL-1. This concludes the review for downgrade initiated on December 18, 2012. The rating outlook is stable. SAGICOR LIFE: Launches X Funds ------------------------------ RJR News reports that Sagicor Life has formally launched its Sagicor X Funds, in which it is seeking to raise at least JM$1 billion to carry out expansion work at its Jewel Dunns River hotel property among so far undefined works. The company said the issue was opened on Monday with over 100 subscribers showing interest, according to RJR News. The report relates that Sagicor X Fund gives investors a chance to invest in 13 billion dollars worth of Sagicor owned properties across the island ranging from industry to office complexes to hotels. The report notes that Richard Byles, chief executive officer of Sagicor Life, said he is expecting pension funds to be the biggest supporter of the issue which will be listed on the Jamaica Stock Exchange. About Sagicor Life Jamaica Sagicor Life Jamaica is the leading life insurance group in the country. The company commenced operations in 1970 as Life of Jamaica Limited, the first locally owned life insurance company and the first life insurance company to be listed on the Jamaica Stock Exchange (JSE). Since its inception, Sagicor Life has gained a solid reputation as an innovator and leader in the Caribbean life insurance industry. The company continues to be the market leader among life and health insurance, fund management and investments services. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 7, 2013, The Gleaner said that Sagicor Jamaica has got court approval to restructure its operations under which all companies within the group will become subsidiaries of a new holding company. Under the new scheme the new Sagicor Jamaica Group will become the parent of insurance company Sagicor Life Jamaica Limited, securities dealer Sagicor Investments Jamaica Limited, and commercial bank Sagicor Bank Jamaica Limited, according to The Gleaner. Sagicor Jamaica commenced operations in 1970 as Life of Jamaica Limited. The insurance company was bailed out by the Jamaican Government in the 1990s and subsequently sold to a Barbados operation. Its name and that of other local subsidiaries were later changed to align with the brand identity of ultimate parent Sagicor Financial Corporation. * JAMAICA: S&P Raises Sovereign Rating to 'B-'; Outlook Stable -------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term foreign and local currency sovereign credit ratings on Jamaica to 'B-' from 'CCC+'. At the same time, S&P raised its short-term foreign and local currency sovereign credit ratings on Jamaica to 'B' from 'C'. The outlook on the long-term foreign and local currency sovereign credit ratings is stable. In addition, S&P affirmed its 'B' transfer and convertibility (T&C) assessment. RATIONALE The upgrade reflects recent progress in stabilizing the economy, staunching the loss of foreign-exchange reserves, and gaining access to new external funding from official creditors. After undertaking a debt exchange (NDX) in March of 2013--the second such exchange in the past three years--the Jamaican government entered into a four-year loan agreement with the IMF. Enhanced access to external funding, which the government plans to use to fund its fiscal deficit this year and next year, and an expected decline in the fiscal deficit should ease the pressure on external liquidity in the coming year, reducing the risk of near-term default. The government has undertaken various reforms over the course of 2013 in order to meet its ambitious fiscal targets, including tax increases and austere wage settlements with most public-sector unions. S&P believes that recent policy measures, along with expected disbursements of external funding, should moderately enhance the government's room to maneuver and bolster its ability to service its debt. However, Jamaica's ability to service debt remains vulnerable to sharp fluctuations in the exchange rate or interest rates, as well as fiscal slippage and lower-than-expected GDP growth. The level of foreign exchange reserves--just under $1 billion on a net basis--remains vulnerable to external shocks (such as higher oil prices) and a potential loss of external funding (through either lower foreign direct investment [FDI] or official lending). Moreover, if continued sluggish growth and high unemployment contribute to public protests, weakening the government's ability to implement fiscal austerity measures and gradually reduce its debt burden, Jamaica's reform program may not be sustainable. Similarly, the weakened health of the financial system following the recent NDX debt exchange raises the risk of economic disruption and possible government recapitalization of financial institutions. S&P's ratings on Jamaica reflect the sovereign's high general government debt and interest burden, which contribute to very low fiscal and monetary flexibility. S&P projects the gross general government debt burden to be 135% of GDP in 2013 (S&P deducts debt that the public-sector National Insurance Fund holds). Interest payments are likely to consume about 30% of general government revenues in the current fiscal year. The country's weak economic structure, with negative per capita GDP growth on average over the past seven years, and small, open economy increase its vulnerability to adverse external economic developments. The country remains vulnerable to hurricanes because of its location in the hurricane belt. The ratings also reflect Jamaica's stable democracy and open political system that sustains policy predictability and the country's willingness to service its debt. The government of Prime Minister Portia Simpson-Miller of the People's National Party enjoys a strong majority in parliament and does not face elections until late 2016. The country has demonstrated its willingness to service its debt through running primary budget surpluses (the budget balance less interest payments) averaging 7.3% of GDP over the past two decades. However, the government failed to reduce its high debt burden during those years despite such high primary surpluses, partly because of other economic weaknesses. Hence, S&P remains cautious when analyzing Jamaica's longer-term debt repayment capabilities because the breathing room the government gained after the NDX--about 8.5% of GDP from lower interest payments by 2020, according to official estimates--may not be enough, absent successful implementation of other reform measures, to sustainably reduce its debt burden. Public finances remain vulnerable to a substantial depreciation of the local currency because more than half the debt is denominated in foreign currencies. OUTLOOK The stable outlook reflects S&P's expectation that the government will largely meet its ambitious fiscal targets this year while advancing its tax reform agenda and avoiding a fall in foreign- exchange reserves. S&P expects a gradual decline in the current account deficit to 10% of GDP in 2013 and slightly lower in 2014. S&P also expects that growing external official capital flows, combined with FDI, will limit pressure on the central bank's holdings of foreign-exchange reserves. Reserves are likely to stabilize and may gradually increase, sustaining the current level of external liquidity. Failure to meet fiscal and debt targets could weaken investor confidence, placing pressure on the exchange rate to depreciate and potentially lowering the country's foreign-exchange reserves. The resulting fall in external liquidity and the country's growth prospects could result in a downgrade. Conversely, adherence to the government's ambitious fiscal targets and reform agenda, as well as improving external liquidity, could bolster investor confidence and contribute to better GDP growth prospects. Higher economic growth would allow Jamaica to gradually bring down its very high debt burden, further reducing the risk of default and potentially resulting in a higher rating. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. RATINGS LIST Upgraded To From Jamaica Sovereign Credit Rating B-/Stable/B CCC+/Stable/C Senior Unsecured B- CCC+ Air Jamaica Ltd. Senior Unsecured B- CCC+ National Road Operating and Constructing Company Ltd Senior Unsecured B- CCC+ Ratings Affirmed Jamaica Transfer & Convertibility Assessment Local Currency B Ratings Withdrawn To From Jamaica Senior Unsecured NR D * JAMAICA: Instability of Currency Blamed for Spike in Gas Rate --------------------------------------------------------------- RJR News reports that the continuous instability in the local exchange rate is being blamed for the recent movement in the prices of petroleum products in Jamaica. Jamaica Gasoline Retailers Association (JGRA) said the impact is likely to be felt for a while longer, according to RJR News. Derrick Thompson, President of the JGRA, explained to RJR News that Petrojam buys fuel on the world market and on the open market. "Any movement in the exchange rate will see movement in the oil prices going up. That is one of the reasons why the prices have been trending up in that last couple of weeks," the report quoted Mr. Thompson as saying. RJRnewsonline.com discloses that at the close of trading, Sept. 23, Monday it was costing an average J$102.86 for the US currency. The Canadian dollar gained J$0.09 cents to move to J$99.86 in value, while the pound sterling was up J$0.30 cents to J$165.64. =========== M E X I C O =========== SANLUIS RASSINI: Fitch Affirms 'B' FC Issuer Default Rating ----------------------------------------------------------- Fitch Ratings has affirmed the following ratings of SANLUIS Rassini, S.A. de C.V. (SLR): -- Foreign currency Issuer Default Rating (IDR) at 'B'; -- Local currency IDR at 'B'. The Rating Outlook is Stable. SLR's ratings reflect its solid business position in the auto industry as an essential supplier of suspension and brake parts, especially in North America. The ratings further reflect the geographic diversification of the company's operations, its long- term contracts, flexible cost structure, improving EBITDA margins, lower leverage and consistent positive free cash flow. SLR's ratings are limited by the cyclicality of the industry, NAFTA operations and customer concentration, exposure to exchange rate volatility and important debt maturities occurring in the fourth quarter of 2014. Solid Business Position Supports the Ratings SLR, a subsidiary of SANLUIS Corporacion, S.A.B. de C.V. (SLC), manufactures suspension and brake system components for light and heavy vehicles, with a leading position in North America and Brazil. The company's main product line, leaf springs, which accounted for approximately 68% of total sales in 2012, has historically had a market share of over 90% in North America and an estimated share in Brazil of 65%. This strong position results from the group's technology development over the years, close and long relationships with customers through product design and development, geographic location, and integrated operations. These factors have allowed the company to deliver high service levels and renew or gain new contracts with customers in the region. SLR is considered as an essential supplier, among others, for GM, Chrysler and Ford. However, SLR's customer base is concentrated; Detroit's three OEMs represent approximately 68% of total revenues. In 2012, North America represented 73% of total SLC revenues and 79% of its consolidated EBITDA. Fitch expects these values to remain relatively stable in the next few years. Production volumes of light vehicles in North America are expected to be in the range of 15.9-16.2 million units by the end of 2014, a 3.9% increase or 5.9% above 2012 volume, while in Brazil, commercial vehicle production volumes are expected to increase approximately 16.8% by the end of 2014. Low Cost Structure Provides Flexibility During the latest industry downturn, SLR's reorganization process was similar to other auto parts suppliers' initiatives. The company rationalized its installed capacity and headcount, allowing it to reduce its operational breakeven point from historical levels. Currently management believes the company has a lean structure and available capacity to absorb additional volumes. SLR's contracts usually are granted for the life of the platform, with an average of six years. Suspension and brakes customers' contracts provide raw material pass-through to prices (in either direction) and management has implemented strict cost and expenses controls in order to maintain plant efficiency and productivity. These actions, in conjunction with volume recovery from industry dynamics, have resulted in EBITDA margins between 12%-13% during 2012 and the first half of 2013. However, the company's business nature is closely dependent on volumes and industry cyclicality. Leverage Reduction in the Past Three Years SLR has been reducing its leverage level during the last three years as a result of higher EBITDA generation and debt reduction. As of June 30, 2013, SLC's total consolidated debt was USD250.3 million, distributed as follows: USD106 million of bank loans at the North American suspension group, USD41 million at the Brake Division, USD10.6 million at the Brazilian operations; USD7.7 million of outstanding balances of Euro commercial paper and Eurobonds at the SLC level, USD70.4 million of SLC notes due 2017, and USD14.6 million of SANLUIS Co-Inter (SISA) notes due 2020. On a consolidated basis, SLC's total debt-to-EBITDA ratio as of the last 12 months ended June 30, 2013 was 2.7x and its net debt- to-EBITDA ratio was 2.1x. The company intends to increase its debt maturity profile and move towards its long-term leverage target of 2.0x. Corporate and Debt Structure According to Fitch's criteria and methodology, debt at holding or sub-holding companies is structurally subordinated to debt at operating subsidiaries. SLR owns 100% of North America Suspension and Brake operations, and 50.1% of the Brazilian Suspension Group which funds its operations individually; the company only receives dividends from the Brazilian joint venture. In addition, current and/or future debt held at SLC or SISA (SISA notes due 2020) is subordinated to SLR's obligations, which would likely translate into lower ratings for those instruments. In Fitch's view, the company's history of debt restructurings and its corporate structure further limit the ratings. Rating Sensitivities Negative rating actions could result from a combination of lower volume sales and profitability as a result of lower demand in the North American light vehicle segment and Brazilian commercial vehicles division, and/or the loss of customers which in turn translates into increased leverage above expected levels. Conversely, positive rating actions could be taken if the company successfully reduces or refinances the outstanding debt balance of the North American suspension division, maintains constant leverage levels below 2.5x in conjunction with a strong liquidity profile and positive free cash flow generation. ======= P E R U ======= * PERU: To Get US$25MM IDB Loan to Advance Climate Change Program ----------------------------------------------------------------- The Inter-American Development Bank (IDB) approved a loan of US$25 million to help Peru consolidate its climate change program. The programmatic loan will support policy for the reduction of Greenhouse gas emissions, the reduction of vulnerabilities and adaptation to the effects of climate change. The program is expected to consolidate the institutional and regulatory framework, to mainstream climate change in development planning and investment, to build capacity in the lead institutions and develop standardized management tools. An example is Peru's Risk Management and Climate Change Adaptation Plan in the Agricultural Sector 2012-2021 (PLANGRACC-A), which will channel US$704 million for climate research and information, emergency response, risk reduction, planning, and capacity building projects throughout the country. While Peru contributes minimally to global greenhouse gas emissions, it is among the most vulnerable countries to climate change due to the diversity of its ecosystems and the predominance of climate-sensitive sectors in its economy such as agriculture, energy and fisheries. About 15 percent of Peru's GDP and the economic activity of approximately one-third of its population is sensitive to climate change. Various studies calculate that the impact of climate change to the Peruvian economy could cost 1 percent to 4 percent of GDP by 2030 unless response measures are adopted. On the other hand, an investment of 1 percent of GDP in adaptation measures today has a payback of 5 percent GDP by 2030. The loan is the final in a series of three operations to Peru to support policy reforms through a programmatic approach. The first loan was approved on December 2010 for US$25 million. The second, approved in November 2011, was for US$25 million. The IDB loan has an interest rate based on LIBOR and a bullet payment due on April, 15 2019. ==================== S A I N T L U C I A ==================== * ST LUCIA: Businesses Call on Government for Vat Reduction ----------------------------------------------------------- Caribbean360.com reports that the St. Lucia Employers Federation (SLEF) is calling on the government to lower the near one-year old Value Added Tax (VAT) so as to provide "some breathing space" to local business in the face of job losses and business closures. "This reduction will provide members some breathing space as the slowdown in the economy continues to bite deep into their cash flows," the report quoted Executive Director Joseph Alexander as saying. The private sector group wants the VAT reduce from 15 to 10 per cent and Mr. Alexander is also contending that should the government decide against collecting the 15 per cent VAT up front from businesses and collect the tax after they have sold their goods, employers would have the breathing space needed in the current economic downturn, according to Caribbean360.com. The report relates that explaining the plight of some businesses in St. Lucia, Mr. Alexander advised that most operate via an overdraft system which they have to maintain. "Therefore having to pay the 15 percent VAT before goods have been sold plus taking care of their overdraft all at the same time impacts severely on the cash flow of businesses which become yet another reason for job losses and the closure of businesses," the report quoted Mr. Alexander as saying. Mr. Alexender, the report discloses, said that VAT is one amongst other reasons why some businesses were going through tough times, while the slowing down of the economy is another and argues that the Kenny Anthony government should have set the VAT ceiling at 10 per cent and increases it as the economic situation improves. "If things were booming it would not be that difficult. The 15 per cent is just too high in these harsh economic times," the report quoted Mr. Alexander as saying. The report recalls that the VAT went into effect on October 1, 2012, after the government agreed to a one month extension of the fiscal measure. The comments from the Employer Federation on the closure of businesses and job losses here is the second in days, with the National Workers Union (NWU), one of the major trade unions here, expressing concern over the country's failure to grasp timely opportunities to structure a plan aimed at job security and economic stabilization, the report relays. "Over the last 24 months we at the National Worker Union have been monitoring the situation in the country, especially since the financial crisis of 2008 and we are very concern about the direction we see the country heading as it relates to job losses, and redundancies. . . . We have seen the trend via our membership and there is also evidence at the national level. So our concern is related to the future of the country and its workforce, what exactly will happen to the increasing number of persons on the breadline," the report quoted Deputy President General Solace Mayers as saying. Caribbean360.com adds that the union said stakeholders in the industry must come together and devise a plan to arrest the crisis before it gets any worse. ================= X X X X X X X X X ================= * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Oct. 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ Nov. 1, 2013 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Atlanta Marriott Marquis, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2, 2013 BEARD GROUP, INC. 19th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York, N.Y. Contact: 240-629-3300 or http://bankrupt.com/ Dec. 5-7, 2013 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Terranea Resort, Rancho Palos Verdes, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ *********** 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 * * *