/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/131127.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 Wednesday, November 27, 2013, Vol. 15, No. 235 Headlines A R G E N T I N A ARCOR SAIC: Fitch Affirms 'B' Issuer Default Rating; Outlook Neg. B A R B A D O S SAGICOR LIFE: S&P Retains 'BB+' Rating on CreditWatch Negative B R A Z I L BANCO PAN: S&P Assigns 'BB+' Issuer Credit Rating; Outlook Neg. OSX BRASIL: Brazil Judge Grants Bankruptcy Protection OSX BRASIL: Takes BRL1.63BB Writedown for 3rd Qtr., Reports Loss C A Y M A N I S L A N D S ALERT INVESTMENTS: Placed Under Voluntary Wind-Up ALL SEASONS: Commences Liquidation Proceedings BARCAN INVESTMENTS: Placed Under Voluntary Wind-Up COVEPOINT EMERGING: Creditors' Proofs of Debt Due Dec. 4 CRYSTAL CREDIT: Creditors' Proofs of Debt Due Dec. 9 DEEPHAVEN EUROPEAN (EUR): Creditors' Proofs of Debt Due Dec. 4 DEEPHAVEN EUROPEAN (USD): Creditors' Proofs of Debt Due Dec. 4 GAIEN PROPERTIES: Commences Liquidation Proceedings GIBBEN LTD: Placed Under Voluntary Wind-Up MOJAV LIMITED: Commences Liquidation Proceedings NINGBO HOLDING: Placed Under Voluntary Wind-Up PALAU INTERNATIONAL: Placed Under Voluntary Wind-Up RAGUNDRI FUNDING: Creditors' Proofs of Debt Due Dec. 4 RESIDENTIAL REINSURANCE: Creditors' Proofs of Debt Due Dec. 5 SHORE RE: Creditors' Proofs of Debt Due Dec. 9 C H I L E AES GENER: Signs MOU With Abengoa to Develop Desalination Plant AES GENER: Fitch to Rate $450MM Jr. Subordinated Notes at 'BB' RUTA DEL BOSQUE: S&P Affirms 'BB+' Rating on Fixed-Rate Notes C O L O M B I A PACIFIC RUBIALES: S&P Keeps 'BB+' Notes Rating After $300MM Add-on PACIFIC RUBIALES: Fitch Rates $300MM Sr. Unsecured Notes 'BB+' M E X I C O AXTEL SAB: Posts Ps. 2,630 Million Revenue in 3Q 2013 AXTEL SAB: S&P Lowers CCR to 'CC' After Exchange Offer & Add-On AXTEL SAB: Fitch Rates $146MM Senior Secured Notes 'B+/RR3' P E R U GRUPO ACP: S&P Puts 'BB+' ICR on CreditWatch Negative T R I N I D A D & T O B A G O * TRINIDAD & TOBAGO: Manufacturers Weigh in on Tension w/ Jamaica - - - - - ================= A R G E N T I N A ================= ARCOR SAIC: Fitch Affirms 'B' Issuer Default Rating; Outlook Neg. ----------------------------------------------------------------- Fitch Ratings has affirmed the following ratings of Arcor S.A.I.C. (Arcor): -- Foreign currency Issuer Default Rating (IDR) at 'B'; Outlook Negative; -- Local currency IDR at 'B+'; Outlook Negative; -- USD200 million senior unsecured notes due 2017 at 'B/RR4'. Key Rating Drivers: Arcor's 'B+' local currency IDR reflects the company's strong business position as a leading Latin American producer of confectionary and cookie products. Arcor enjoys strong brand equity in Argentina due to its comprehensive distribution network and its presence in the country for more than 60 years. The company also has a presence in Brazil and Chile. Together, these three markets account for more than 90% of its total sales. The company's local currency IDR is two notches above Argentina's 'B-' local currency IDR due to its strong capital structure. The close correlation of its cash flow with the strength of the Argentine economy and its exposure to variations in commodity prices, prevent the company from being rated higher despite its strong capital structure and solid business position. As of the last 12 months ended June 30, 2013, Arcor recorded sales of USD3.1 billion and EBITDA of USD287 million. The company generated USD58 million of cash flow from operations and had free cash flow of USD11 million. While Arcor's operations in investment-grade countries such as Brazil and Chile account for approximately 33% of its consolidated revenues, the contribution to cash flow from operations in those countries is still low. About 85% of Arcor's operating cash flow is generated in Argentina. Arcor's operations abroad, as well as its exports from Argentina, allow the company's foreign currency IDR of 'B' to be rated one notch higher than Argentina's country ceiling of 'B-.' Arcor's capital structure is conservative and its leverage is low for the rating category. As of June 30, 2013, Arcor had a total debt-to- EBITDA ratio of 2.0 times (x) and a net debt-to-EBITDA ratio of 1.7x. Dollar-denominated debt was approximately USD318 million as of June 2013, about 70% of total debt. The company's liquidity is manageable. As of June 2013, the company reported cash and marketable securities of USD80.5 million and short-term debt of USD234 million. Rating Sensitivities: The Stable Outlook reflects Fitch's expectations that Arcor will manage its balance sheet to a targeted ratio of debt-to-EBITDA of around 2x. Under a conservative scenario, Fitch estimates the company's interest coverage to be above 4x. Without an upgrade in the sovereign rating of Argentina, Arcor's ratings will likely not be upgraded. The company will likely not be downgraded unless the sovereign ratings are downgraded. =============== B A R B A D O S =============== SAGICOR LIFE: S&P Retains 'BB+' Rating on CreditWatch Negative -------------------------------------------------------------- Standard & Poor's Ratings Services said that the 'BB+' financial strength and counterparty credit ratings on Sagicor Life Inc. (Sagicor) and its 'BB-' issue-level ratings on Sagicor Finance Ltd. remain on CreditWatch with negative implications where S&P placed them on Feb. 13, 2012. S&P's CreditWatch placement also incorporates the potential effects of the downgrade on Barbados (BB-/Negative/B) and the exposure to Jamaica (B-/Stable/B) under our Ratings Above the Sovereign criteria. "Our ratings incorporate our expectations that Sagicor will be able to significantly reduce its property and casualty business. Sagicor's major exposure to P&C is through Sagicor at Lloyd's. The sale of the business is still pending regulatory approvals," said Standard & Poor's credit analyst Angelica Bala. Additionally, the two notch downgrade on Barbados and the low rating on Jamaica, countries where the company is exposed, pressure the ratings. S&P is currently analyzing Sagicor under its new "Ratings Above The Sovereign" criteria (published on Nov. 19, 2013) to ascertain the potential effects on the ratings on Sagicor, considering that the company is geographically diversified. S&P will resolve the CreditWatch placement once the sale of Sagicor at Lloyd's is completed and it performs a stress test analysis to assess the potential implications of its new Ratings Above the Sovereign criteria. Depending on these two factors, the ratings could suffer a multi-notch downgrade. =========== B R A Z I L =========== BANCO PAN: S&P Assigns 'BB+' Issuer Credit Rating; Outlook Neg. --------------------------------------------------------------- Standard & Poor's Ratings Services assigned its global scale 'BB+' long-term and 'B' short term issuer credit ratings on Banco Pan S.A. (Banco Pan; formerly Banco Panamericano S.A.). S&P also assigned its 'brAA/ brA-1' national scale ratings to the bank. The outlook on the long-term ratings is negative. The ratings on Banco Pan reflect its 'b+' SACP and its strategically important status to Banco BTG Pactual S.A. (BTG; BBB-/Stable/A-3), according to S&P's criteria for rating group entities. S&P's view of its strategic importance is based on the Banco Pan's close integration with and management from its parent, and S&P's view that it is unlikely the bank will be sold in the next 18 to 24 months. "Banco Pan S.A. is a joint venture between between BTG and Caixa Economica Federal, with BTG holding 51% of Banco Pan voting shares and Caixa holding the remainder," said Standard & Poor's credit analyst Cynthia Cohen Freue. Banco Pan's SACP reflects its "moderate" business position, "weak" capital and earnings, "moderate" risk position, "average" funding, and "adequate" liquidity. The negative outlook reflects that of Brazil's banking industry risk and underpins S&P's assessment regarding rapid credit expansion in Brazil, leading to substantial household debt that has consistently and significantly outpaced GDP growth over the past five years. S&P believes that another round of aggressive credit expansion, especially by publicly owned banks, might trigger loan growth appetite among private banks as well, amid the central government's policies designed to stimulate sustained credit growth. A deterioration in Brazil's banking industry risk resulting in a downgrade of the anchor for Brazilian banks will have negative rating implications for Banco Pan. Additionally, a reduction in Banco Pan's "strategically important" role for BTG, or a downgrade of this important shareholder, would lead S&P to downgrade Banco Pan. S&P could also lower the ratings if Banco Pan's asset quality deteriorates, with NPLs consistently above 7% and charge offs reaching 7.5%, which may lead S&P to revise the bank's risk position. Moreover, a RAC ratio below 3% will lead to a revision in capital and earnings, and a lower rating. S&P could revise the outlook to stable if it revises the Brazilian banking economic risk trend to stable and/or if the bank manages to improve its operating performance while improving its asset quality metrics. OSX BRASIL: Brazil Judge Grants Bankruptcy Protection ----------------------------------------------------- Luciana Magalhaes at The Wall Street Journal reports that a corporate court in Rio de Janeiro granted bankruptcy protection to shipbuilder OSX Brasil SA and two of its subsidiaries, all controlled by former billionaire Eike Batista. The troubled shipbuilding company filed for judicial recovery on Nov. 11, 2013, following a similar request by sister company oil firm OGX Petroleo e Gas Participacoes S.A., according to The Wall Street Journal. The WSJ notes that OSX SA had outstanding debts of around US$2.2 billion as of June 30, including dollar-and real-denominated loans and bonds held by a mix of banks, investors and government institutions, such as Brazil's Merchant Marine Fund. The WSJ relates that OSX SA was created to support the expected growth of the oil firm, Mr. Batista's flagship company, which after several operational setbacks had to discontinue the exploration of most of its oil fields. In a recent letter sent to Norsk Tillitsmann ASA, the Norwegian trustee for the bondholders, OSX SA said that it expects to miss an interest payment due Dec. 20 on US$500 million in outstanding bonds, The WSJ discloses. About OSX OSX Brasil SA is a shipbuilder controlled by billionaire Eike Batista. As reported in the Troubled Company Reporter-Latin America on Nov. 12, 2013, The Wall Street Journal said that OSX Brasil SA filed for bankruptcy protection, the second such filing for a commodities empire that crumbled this year as losses piled up and investor confidence plummeted. The move on Nov. 11 at a Rio de Janeiro court follows a default and bankruptcy filing the prior month for Mr. Batista's flagship oil firm OGX Petroleo e Gas Participacoes SA, according to the WSJ report. The firm went public in 2008 for $4.1 billion but failed to produce nearly any of the up to 10.8 billion barrels it claimed to have. Recently, OGX declared several of its once promising fields were actually duds. OSX BRASIL: Takes BRL1.63BB Writedown for 3rd Qtr., Reports Loss ---------------------------------------------------------------- Matthew Cowley at The Wall Street Journal reports that OSX Brasil S.A. wrote down the value of its assets by BRL1.63 billion (US$717 million) in the third quarter of 2013. OSX Brasil S.A. filed for bankruptcy protection from creditors this month, following in the steps of its main client and sister company, OGX Petroleo e Gas Participacoes S.A., according to The Wall Street Journal. The report notes that a corporate court in Rio de Janeiro approved the request. The WSJ says that as a result of the writedown, OSX SA reported a net loss of BRL1.84 billion for the quarter. The WSJ relates that the brunt off the writedown was at OSX SA's leasing arm, which is supposed to hire out the oil platforms the firm is building. The writedown for the leasing unit totaled BRL1.06 billion, while the firm wrote off BRL566.6 million in value at its naval construction unit, The WSJ relays. The WSJ discloses that revenues for the quarter totaled BRL151.9 million, down from BRL188.5 million in the second quarter. The firm also said it lost BRL57.7 million related to interest rate derivatives, The WSJ relays. The WSJ discloses that the total investments in the quarter were BRL673 million, most of which was spent on the shipyard unit, UCN Acu. The firm said it had BRL196.6 million in cash as of Sept. 30, The WSJ notes. The WSJ says that the firm also reported total debts of BRL4.8 billion. Of that, BRL1.7 billion was related to UCN Acu, BRL648 million to FPSO OSX-1, BRL1.2 billion to FPSO OSX-2 and BRL1.1 billion related to FPSO OSX-3, The WSJ notes. The firm has another BRL201 million in other financing, according to the statement, The WSJ adds. About OSX OSX Brasil SA is a shipbuilder controlled by billionaire Eike Batista. As reported in the Troubled Company Reporter-Latin America on Nov. 12, 2013, The Wall Street Journal said that OSX Brasil SA filed for bankruptcy protection, the second such filing for a commodities empire that crumbled this year as losses piled up and investor confidence plummeted. The move on Nov. 11 at a Rio de Janeiro court follows a default and bankruptcy filing the prior month for Mr. Batista's flagship oil firm OGX Petroleo e Gas Participacoes SA, according to the WSJ report. The firm went public in 2008 for $4.1 billion but failed to produce nearly any of the up to 10.8 billion barrels it claimed to have. Recently, OGX declared several of its once promising fields were actually duds. ========================== C A Y M A N I S L A N D S ========================== ALERT INVESTMENTS: Placed Under Voluntary Wind-Up ------------------------------------------------- On Oct. 4, 2013, the shareholder of Alert Investments Ltd resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 ALL SEASONS: Commences Liquidation Proceedings ----------------------------------------------- On Oct. 25, 2013, the sole shareholder of All Seasons Enhanced Equity Fund 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 liquidators are: Edel Andersen Roger Priaulx Telephone: (345) 815 8532 Facsimile: (345) 945 3470 c/o Genesis Trust & Corporate Services Ltd. P.O. Box 448 Midtown Plaza Elgin Avenue, George Town Grand Cayman KY1-1106 Cayman Islands BARCAN INVESTMENTS: Placed Under Voluntary Wind-Up -------------------------------------------------- On Oct. 23, 2013, the shareholder of Barcan Investments Limited resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 COVEPOINT EMERGING: Creditors' Proofs of Debt Due Dec. 4 -------------------------------------------------------- The creditors of Covepoint Emerging Markets Macro Overseas Fund, Ltd. are required to file their proofs of debt by Dec. 4, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 25, 2013. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Kim Charaman/Jennifer Chailler Telephone: (345) 943-3100 CRYSTAL CREDIT: Creditors' Proofs of Debt Due Dec. 9 ---------------------------------------------------- The creditors of Crystal Credit Ltd. are required to file their proofs of debt by Dec. 9, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 18, 2013. The company's liquidators are: Yohann Regnard Dena Thompson P.O. Box 10233 171 Elgin Avenue Willow House, 3rd Floor Grand Cayman Cayman Islands Telephone: 914-2266/ 949-5263 Facsimile: 949-6021 DEEPHAVEN EUROPEAN (EUR): Creditors' Proofs of Debt Due Dec. 4 -------------------------------------------------------------- The creditors of Deephaven European Event Fund (EUR) Ltd are required to file their proofs of debt by Dec. 4, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 7, 2013. The company's liquidator is: Jess Shakespeare c/o Camele Burke Kinetic Partners (Cayman) Limited The Harbour Centre 42 North Church Street P.O. Box 10387 Grand Cayman KY1-1004 Cayman Islands Telephone: (345) 623 9904 Facsimile: (345) 943 9900 DEEPHAVEN EUROPEAN (USD): Creditors' Proofs of Debt Due Dec. 4 -------------------------------------------------------------- The creditors of Deephaven European Event Fund (USD) Ltd are required to file their proofs of debt by Dec. 4, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 7, 2013. The company's liquidator is: Jess Shakespeare c/o Camele Burke Kinetic Partners (Cayman) Limited The Harbour Centre 42 North Church Street P.O. Box 10387 Grand Cayman KY1-1004 Cayman Islands Telephone: (345) 623 9904 Facsimile: (345) 943 9900 GAIEN PROPERTIES: Commences Liquidation Proceedings --------------------------------------------------- On Oct. 25, 2013, the shareholders of Gaien Properties 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: Stephen Nelson Telephone: (345) 949.4544 Facsimile: (345) 949.8460 Charles Adams Ritchie & Duckworth P.O. Box 709, 122 Mary Street Grand Cayman KY1-1107 Cayman Islands GIBBEN LTD: Placed Under Voluntary Wind-Up ------------------------------------------ On Oct. 18, 2013, the shareholder of Gibben Ltd. resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 MOJAV LIMITED: Commences Liquidation Proceedings ------------------------------------------------ On Sept. 24, 2013, the sole shareholder of Mojav 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: Eagle Holdings Ltd. 25 Main Street, P.O. Box 487, George Town Grand Cayman KY1-1106 Cayman Islands Telephone: +1 (312) 914 5428 NINGBO HOLDING: Placed Under Voluntary Wind-Up ---------------------------------------------- On Oct. 18, 2013, the sole shareholder of Ningbo Holding Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Nov. 12, 2013, will be included in the company's dividend distribution. The company's liquidator is: MBT Trustees Ltd. Telephone: 945-8859 Facsimile: 949-9793/4 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands PALAU INTERNATIONAL: Placed Under Voluntary Wind-Up --------------------------------------------------- On Oct. 18, 2013, the sole shareholder of Palau International Ltd resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: MBT Trustees Ltd. Telephone: 945-8859 Facsimile: 949-9793/4 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands RAGUNDRI FUNDING: Creditors' Proofs of Debt Due Dec. 4 ------------------------------------------------------ The creditors of Ragundri Funding Limited are required to file their proofs of debt by Dec. 4, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 24, 2013. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Kim Charaman/Jennifer Chailler Telephone: (345) 943-3100 RESIDENTIAL REINSURANCE: Creditors' Proofs of Debt Due Dec. 5 ------------------------------------------------------------- The creditors of Residential Reinsurance 2010 Limited are required to file their proofs of debt by Dec. 5, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 18, 2013. The company's liquidators are: Shaun Geils Kevin Poole P.O. Box 10233 171 Elgin Avenue Willow House Grand Cayman Cayman Islands Telephone: 914-2259/ 949-5263 Facsimile: 949-6021 SHORE RE: Creditors' Proofs of Debt Due Dec. 9 ---------------------------------------------- The creditors of Shore Re Limited are required to file their proofs of debt by Dec. 9, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 18, 2013. The company's liquidators are: Yohann Regnard Dena Thompson P.O. Box 10233 171 Elgin Avenue Willow House, 3rd Floor Grand Cayman Cayman Islands Telephone: 914-2266/ 949-5263 Facsimile: 949-6021 ========= C H I L E ========= AES GENER: Signs MOU With Abengoa to Develop Desalination Plant --------------------------------------------------------------- Abengoa has been selected by AES Gener, an energy company in Chile, to develop a new reverse osmosis desalination plant for AES Gener's Angamos power plant. Abengoa will manage the engineering, construction and subsequent operation of the project which will have a total budget of US$ 26 million and will provide 19,200 m3/day of water for reliable energy generation for Angamos and third party clients. This will be Abengoa's first desalination project in Chile and South America, although the company has had a presence in the country for over 27 years. Abengoa employs over 1,400 people in Chile where it has developed projects in water and energy infrastructure. The Angamos desalination project is part of Abengoa's strategic plan to provide relief to the drought-ridden areas of South America, such as Northern Chile. Through this project Abengoa will expand its desalination capacity to nearly 1.3 billion m3 per day, which is enough to provide water to 8 million people. Furthermore, this plant reaffirms Abengoa's commitment to providing technological solutions for global issues such as water scarcity and promoting overall development worldwide. AES GENER: Fitch to Rate $450MM Jr. Subordinated Notes at 'BB' -------------------------------------------------------------- Fitch Ratings expects to assign a long-term rating of 'BB' to AES Gener S.A.'s proposed USD450 million junior subordinated (hybrid) notes issuance due 2073. Gener expects to use the proceeds from the issuance to finance its equity contribution for the Alto Maipo and Cochrane projects as well as to repay upcoming maturities and for general corporate purposes. These hybrid notes will receive a 50% equity credit given that interest payments on the notes are deferrable at the company's discretion and are compounded at the applicable interest on the notes. Also, the notes' subordinated ranking provides loss absorption for more senior indebtedness of the company. Successful completion of this transaction and eventual financial closing of the Alto Maipo project financing will result in a one notch downgrade of Gener's Issuer Default Ratings and senior unsecured debt to 'BBB-' from 'BBB' as a result of the increased execution risk associated with the company's expansion projects, namely its investment in Alto Maipo. The downgrade also reflects the resulting high consolidated leverage, which is more in line with the 'BBB-' rating. The company's hybrid proposed debt issuance, which Fitch expects to rate at 'BB', will not be downgraded with the aforementioned downgrade given that the issuance impact on the company's credit quality has already been incorporated in to the rating. As a result of this proposed debt issuance, the company's consolidated leverage is expected to increase above 4.5 times (x) by 2015, which is considered to be more in line with the 'BBB-' rating. Alto Maipo's future power generation is only partially contracted given that its generation varies with hydrological conditions and as a result cash generation from this project is subject to greater volatility. These facts are not fully mitigated by the project-finance like financing. Also, Gener has an ambitious expansion program that includes the simultaneous construction of Cochrane, a 532MW thermo electric power plant, in addition to the Alto Maipo project, which is a 531MW of installed capacity run-of-the river generation plant. In conjunction, these projects will add 1,063MW of capacity, with an associated investment of USD3.2 billion. The magnitude of the projects adds to Gener's execution and construction risk. Gener's ratings are supported by the company's solid credit metrics, balanced contracted position and diverse portfolio of generating assets. The ratings also recognize that its major plants operate under constructive regulatory environments. Credit risks include possible environmental and/or political issues, which could result in cost overruns or additional modifications in new projects. The credit risks also include the regulatory uncertainties in Argentina related to Termoandes S.A. and pressures from the controlling shareholder AES Corp. to increase dividends, although these risks appear manageable. Key Rating Drivers: Good Financial Performance Despite a slightly over contracted position relative to the company's efficient energy generation in Chile in 2012, Gener's credit quality measures were within guidelines for its rating category. For the last 12 months ended Sept. 30, 2013, the company's consolidated EBITDA coverage and debt-to-EBITDA metrics were 4.3x and 3.1x, respectively. Excluding the non-recourse debt of Angamos power plant, Gener's debt-to-EBITDA was solid at 2.5x. Consolidated EBITDA was USD655 million in Sept. 30, 2013, consistent with Fitch's expectations. In year-end 2013, EBITDA is expected to remain at similar levels. Rising Capital Expenditures Gener initiated construction in March of 2013 of its 532MW Cochrane coal project in SING, with estimated investment of approximately USD1.3 billion. This project is being financed through a project-finance type debt that is non-recourse to Gener. The company is also analyzing the 531MW Alto Maipo hydroelectric project, though this project is in preliminary works and expects to start construction before the end of 2013. A similar project financing structure is being pursued for Alto Maipo. In the Cochrane project, Gener has incorporated Mitsubishi Corporation as a shareholder with a 60%/40% stake, respectively. Construction risk is likely to be mitigated by the selection of the same constructor that the Angamos project (Posco Engineering & Construction) which completed the project on budget and before schedule, and was also the constructor of the Nueva Ventanas and Ventanas IV plants. In addition, the project will be located beside the Angamos plant, which adds its experience in the port and coal stock management. Commercial risk is mitigated by solid counterparties and/or the existence of guarantees. In Alto Maipo, Gener incorporated Antofagasta Minerals S.A., a Chilean mining company, as 40% shareholder. Adequate Liquidity As of Sept. 30, 2013, Gener's consolidated liquidity was USD382 million, enhanced by access to committed credit lines for USD275 million. USD 170 million of the liquidity is restricted. Short- term debt was USD271 million. In 2014, Fitch expects Gener to refinance its USD317 million debt maturities. High Dividend Payment Gener has a track record of high dividend payments. Cash flow could be pressured in the upcoming expansion phase should this policy be maintained. Rating Sensitivities: A change in Gener's commercial policy that results in an imbalanced long-term contractual position, and/or a material and sustained deterioration of credit metrics (reflected in a non- recourse debt-to-EBITDA ratio greater than 3x and EBITDA-to- interest coverage below 3x) could result in a negative rating action. Fitch believes that a positive rating action is limited at this time due to the expected capacity expansion over the next few years. Gener is the second largest electricity generation company in Chile, as it operates 22% of the country's total generating capacity (4,081 MW, including its investments in Guacolda). The company has ownership interests in electric generation in Colombia and Argentina. Gener is indirectly owned by AES Corporation (71%). AES Corporation is one of the world's largest global power companies. With operations in five continents, the company is active in the generation and distribution of electricity. The company controls more than 40,000 MW of capacity. Fitch currently rates Gener's ratings as follows: -- US$400 million, 2014 notes at 'BBB'; -- US$400 million, 2021 notes at 'BBB'; -- UF$4.4 billion, 2028 notes Series N at'A+(cl)'; -- UF$1.2 billion, 2015 notes Series O at 'A+(cl)'; -- US$196 million, 2019 notes Series Q at 'A+(cl)'; -- US$200 million Bond Program at 'A+(cl)'; -- US$400 million Bond Program at 'A+(cl)'. RUTA DEL BOSQUE: S&P Affirms 'BB+' Rating on Fixed-Rate Notes ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+' long-term senior secured debt rating on Ruta del Bosque Sociedad Concesionaria S.A.'s (RdB) fixed-rate notes. The outlook is stable. "The rating affirmation takes into consideration the project's operating and financial performance which is in line with our expectations. Traffic continues to recover after the completion of earthquake-related reconstructions works. The 'BB+' senior secured debt ratings on RdB reflect our 'BB+' underlying rating," said Standard & Poor's credit analyst Veronica Yanez. The bond insurance provider is Syncora Guarantee Inc. (not rated; formerly XL Capital Assurance). Intervial Chile S.A. (formerly Cintra Chile) owns RdB. Colombia- based Interconexion Electrica S.A. E.S.P. (ISA) (ISA; BBB- /Stable/--, through ISA Inversiones Chile Ltda) fully owns Intervial Chile. Intervial Chile operates five stretches of Chile's main north-south highway, Ruta 5 (Maipo, Maule, Bosque, Araucania and Rios). The rating on RdB reflects the following weaknesses: -- Although the concession's income distribution mechanism (IDM) significantly increases recovery value, it doesn't guarantee the timing of cash inflows; and -- Weak debt service coverage ratios (DSCRs). The following strengths partly offset the weaknesses: -- The project can make no restricted payments until it has paid all senior debt, which protects cash flows in favor of creditors; -- If the project fails to reach a certain rate of revenue growth, mandatory toll increases help to maintain even cash flow distribution throughout the term of the concession; and -- Long traffic history provides more predictability to the traffic base. =============== C O L O M B I A =============== PACIFIC RUBIALES: S&P Keeps 'BB+' Notes Rating After $300MM Add-on ------------------------------------------------------------------ Standard & Poor's Rating Services Ratings said its 'BB+' issue rating on Toronto-based oil and gas producer Pacific Rubiales Energy Corp.'s senior unsecured notes remains unchanged following the announced $300 million add-on to the 2021 notes. This add-on increased the notes' outstanding balance to $600 million. Proceeds will be used to fund Petrominerales' acquisition. "The 'BB+' rating on Pacific Rubiales is derived from our anchor of 'bb+', based on our "fair" business risk and "intermediate" financial risk profile assessments for the company, and no rating impact derived from the rating modifiers. The company's "fair" business risk profile is primarily based on on its smaller scale compared with its investment-grade peers and its revenue concentration in Rubiales and Piriri blocks, whose concessions expire in 2016. However, the company has been diversifying its current portfolio and increasing its production and total proved plus probable reserves. The Petrominerales' acquisition would help to increase Pacific Rubiales' current production and proved reserves by 15% and 30%, respectively," S&P said. Pacific Rubiales' "intermediate" financial risk profile is based on S&P's expectations that although its debt will increase, with pro forma debt to EBITDA expected at about 1.5x at the end of 2013, it would improve to less than 1.2x in 2014 under S&P's base case, mostly as a result of the increased production and lower operating costs. Ratings List Pacific Rubiales Energy Corp. Corporate credit rating BB+/Stable/-- Senior Unsecured PACIFIC RUBIALES: Fitch Rates $300MM Sr. Unsecured Notes 'BB+' -------------------------------------------------------------- Fitch rates Pacific Rubiales Energy Corp's $300 million reopening of the company's senior unsecured notes due 2021 'BB+'. Pacific Rubiales expects to use the proceeds to fund the acquisition of Petrominerales Ltd. as well as for its capital investment program and general corporate purposes. Key Rating Drivers: Pacific Rubiales' ratings are supported by the company's leadership position as the largest independent oil and gas player in Colombia and its strong management with recognized expertise in heavy oil exploration and production. The ratings also reflect the company's strong liquidity and adequate leverage. The company faces developing risks associated with increasing production from existing fields in order to offset decrease in production expected for 2016, when the production agreement for its main producing field expires. Pacific Rubiales' credit quality is tempered by the company's small scale, production concentration and relatively small reserve profile. The company also benefits somewhat from its partnerships with Ecopetrol (rated with a 'BBB-' Issuer Default Rating by Fitch), Colombia's national oil and gas company, which supports Pacific Rubiales' investments and shares production. Solid Financial Profile: The company's ratings reflect its adequate financial profile characterized by low leverage and strong interest and debt service coverage. As of the last 12 months (LTM) ended Sept. 30, 2013, the company reported leverage ratios, as measured by total net debt- to-EBITDA and total debt-to-total proved reserves, of 0.8x and USD6.4 per barrels of oil equivalent (boe), respectively. As of Sept. 30, 2013, debt of approximately USD2.1 billion was composed mostly of senior unsecured notes due 2021 and 2023. Also as of the LTM ended Sept. 30, 2013, Pacific Rubiales reported EBITDA, as measured by operating income plus depreciation and stock-based compensation, of USD2.2 billion. Piriri-Rubiales Concession Expires in 2016: Although Pacific Rubiales' production and reserves profile has significantly improved in recent years, the expiration of the Piriri-Rubiales production agreement in 2016 is expected to have a significant impact on the company's financial results. As a result of the expiration of the production agreement in 2016, Fitch expects Pacific Rubiales' production level for 2017 to be in line with that of 2012 or below current production. This field currently represents 55% of total net production, down from 75% in 2010. The company is expected to be able to replace Piriri- Rubiales production by 2017 given the company's recent diversification efforts and high reserve replacement ratios, coupled with its proven track record of increasing production. The rating does not incorporate the possibility of extending production from this field past its expiration date. As of December 2012, this field represented approximately 19% of the company's total proved and probable reserves of 514 million boe; excluding the Piriri-Rubiales resources, debt-to-reserves (1P) are still low at approximately USD8.8 per boe. Petrominerales Acquisition Neutral for Credit Quality: Pacific Rubiales' intended acquisition of Petrominerales Ltd. is expected to be credit neutral, as the transaction is believed to marginally increase leverage and somewhat increase its production diversification. On Sept. 29, 2013, Pacific Rubiales entered into an agreement to acquire all outstanding common shares of Petrominerales. The total purchase price of approximately USD1.6 billion includes a USD961 million cash payment and Pacific Rubiales' assumption of USD697 million of debt. The company expects to finance the acquisition using cash on hand and short- term financing from its committed credit lines. As a result, Pacific Rubiales' 2012 pro forma leverage would have been 1.2x (after giving effect to the incremental debt), from approximately the 0.7x as reported. Following the acquisition, the company intends to divest some of Petrominerales asset, especially some investments in pipelines in Colombia, to raise approximately USD300 million to USD400 million of cash and reduce debt related to the acquisition. Improving Operating Metrics: Operating metrics for the company have been improving rapidly and its growth strategy is considered somewhat aggressive. During 2012, the company reserve replacement ratio was 398% and its current 2P reserve life index is approximately 14 years using current production levels. During the past two years the company increased gross and net production to approximately 310,471 boe/d and 127,728 boe/d, respectively, from approximately 235,796 boe/d and 92,611 boe/d as of June 2012. As of December 2012, Pacific Rubiales' proved (1P) and proved and probable (2P) reserves, net of royalties, amounted to approximately 336 million and 514 million bbls, respectively. The company's reserves are composed of heavy crude oil (59%) and natural gas and light and medium oil (41%). Pacific Rubiales has a significant number of exploration prospects which will require significant funds to develop. In the short term, the company plans to devote its efforts to develop the Quifa, Sabanero and CPE-6 blocks, which surround and are near the Piriri-Rubiales block. Capex to Pressure Free Cash Flow: Free cash flow (FCF; cash flow from operations less capital expenditures and dividends) has been negative given the company's growth strategy. Pacific Rubiales' significant capital expenditure plans over the next few years could continue to pressure FCF in the near term. Increasing production at the Piriri-Rubiales and the surrounding Quifa block are expected to account for the bulk of the company's capital expenditure, which is expected to be approximately USD6.5 billion between 2012 and 2016, excluding the Petrominerales acquisition. By the year 2017 and after the expiration of the Piriri-Rubiales concession, leverage could increase to approximately 1.0x to 1.5x as a result of the decrease in production and lower oil prices considered under Fitch's base case scenario. Strong Liquidity Position: The company's current liquidity position is considered strong, characterized by strong cash flow generation and manageable short- term debt obligations. As of Sept. 30, 2013, cash on hand amounted to approximately USD376 million, while short-term debt was USD189 million. The company also has two revolver credit facilities totaling USD700 million and as of Sept. 30, 2013, it had drawn down approximately USD92 million. Rating Sensitivities: A rating downgrade would be triggered by any combination of the following events: sustained adjusted leverage above 2x, driven by increase in debt for exploration combined with a low success rate of discoveries; an increase in royalties that significantly cripples the company's financial profile (no changes in royalties are expected in the near future); and/or a decline in production and reserves. Pacific Rubiales' ratings could also be pressured if the company fails to increase production to replace the significant contribution of the Pirir-Rubiales field by the time the concession expires. Although a positive rating action is unlikely in the medium term given the current developing risks associated with the company, factors that could result in a positive rating action include increased diversification of the production profile, consistent growth in both production and reserves, and positive FCF generation. =========== M E X I C O =========== AXTEL SAB: Posts Ps. 2,630 Million Revenue in 3Q 2013 ----------------------------------------------------- Businesswire reported on Oct. 28, 2013, that Axtel, S.A.B. de C.V. disclosed its unaudited third quarter results ended September 30, 2013. The company's revenues from operations totaled Ps. 2,630 million in the third quarter of year 2013 from Ps. 2,581 million for the same period in 2012, an increase of Ps. 49 million or 2%. The company's revenues from operations totaled Ps. 9,717 million in the twelve month period ended September 30, 2013, compared to Ps. 10,540 million in the same period in 2012, a decrease of Ps. 824 million, or 8%. A full text copy of the company's financial report is available free at: http://is.gd/PfYIvo Axtel S.A.B de C.V. (Axtel) is a Mexican telecommunications company with a significant growth in the broadband segment. The company serves all market segments -- corporate, financial, government, wholesale and residential with the most robust offering of integrated communications services in Mexico. AXTEL SAB: S&P Lowers CCR to 'CC' After Exchange Offer & Add-On --------------------------------------------------------------- Standard & Poor's Ratings Services reviewed its ratings on Axtel S.A.B de C.V. (Axtel), which it labeled as "under criteria observation" (UCO) after the publishing of its revised corporate criteria on Nov. 19. S&P expedited the review of the ratings on Axtel because of the company's announced exchange of its notes and add-on. With S&P's criteria review of Axtel, it has confirmed that its ratings on this issuer are unaffected by the criteria changes. At the same time, S&P lowered its corporate credit rating to 'CC' from 'B-', following its proposed debt exchange offer and add-on. S&P also affirmed its 'B' issue level rating and recovery ratings of '2' on the company's senior secured notes due 2020. Under the proposed exchange and reopening, the outstanding 2020 notes principal could increase to $394.6 million. The outlook on the corporate credit rating is negative. "The downgrade follows Axtel's announcement of an offer to exchange up to $110 million of its outstanding 2017 and 2019 senior unsecured notes for senior secured notes due 2020," said Standard & Poor's credit analyst Marcela Duenas. According to S&P's criteria, it views this as a distressed exchange and tantamount to a default, despite the security interest over almost all of Axtel's assets. The offer, in S&P's view, implies the investor will receive less value than the promise of the original securities; the interest rate for the 2019 notes is lower than the original yield; and the new securities' maturities extend beyond the original maturity date, except for the 2019 notes; if on June 22, 2019, more than $125 million of 2019 senior unsecured notes is outstanding, the secured notes due 2020 will mature on June 22, 2019. AXTEL SAB: Fitch Rates $146MM Senior Secured Notes 'B+/RR3' ----------------------------------------------------------- Fitch Ratings has assigned a 'B+/RR3' rating to Axtel S.A.B. de C.V.'s (Axtel) USD146 million reopening of its senior secured notes due 2020. USD110 million in senior secured notes will be offered in exchange for the company's existing 2017 and 2019 senior unsecured notes, and an additional USD36 million in new senior secured notes due 2020 will be issued. With the proposed reopening, the 2020 notes will have outstanding approximately USD417 million, with USD397 million in senior secured notes and the remainder of senior convertible notes. These notes are secured by first priority liens on all capital stock of subsidiary guarantors and substantially all assets. Recovery prospects of the old notes (rated 'B-/RR5') are not expected to change due to the reopening. These notes are structurally subordinated to senior debt and most of the covenants have been removed. 'RR5' rated securities have characteristics consistent with securities, historically recovering 11%-30% of current principal and related interest. The secured notes are rated 'B+/RR3', which reflects good recovery prospects given default. These notes are secured by first priority liens on all capital stock of subsidiary guarantors and substantially all assets. Securities rated 'RR3' consider good recovery prospects given default and have characteristics consistent with securities historically recovering 51%-70% of current principal and related interest. Key Rating Drivers: The reopening does not affect leverage significantly and improves the debt maturity schedule. Pro forma the proposed reopening, Fitch estimates total adjusted debt to EBITDAR and total debt to EBITDA to be around 4.0 times (x) and 3.0x, respectively, from previous estimations of adjusted leverage approximately 3.5x. Fitch considers the company's credit profile will benefit from the exchange an improved liquidity position and the extension of debt maturities. Axtel's ratings reflect a better liquidity position after the debt exchange that took place in January 2013, which resulted in lower leverage and a capital structure with more flexibility to service debt and an extended maturity profile. In addition, the liquidity position was enhanced by the sale and lease back of 883 of towers which proceeds, approximately US$250 million, were used to cover the costs of debt exchange, prepayment of the syndicated loan and company's cash balance. While the sale and leaseback of towers improved the liquidity position, leverage adjusted for off-balance sheet liabilities remain relatively the same. Axtel's ratings are limited by the company's weak operational performance, demanding investment plans which, while it should contribute to strengthen its service portfolio and address the strong competitive environment, limited FCF generation as the company will fund its investments from internal generation. Fitch is not expecting the company to deleverage in the next few years and refinancing risk from the maturity in 2017 could dissipate if the 2017 bondholders participate in the reopening of the 2020 notes. The stability of the rating depends on Axtel's ability to sustain EBITDA generation, which is tied to how quickly the company is able retain both residential and corporate customers and achieve further data and internet revenues that could offset declining voice revenues and prices pressures. Also a negative rating action could be triggered by an adverse ruling of contingent liabilities estimated at US$270 million. Fitch views the passage of a new telecommunications law in Mexico to have some positive effects to Axtel's operation in the medium term. Rating Sensitivities: A positive rating action is unlikely in the short term given this years' distressed debt exchange but positive factor to credit quality include a sustained improvement in the operating performance, margins, FCF generation, competitive environment and competitive position. A negative rating action could be triggered by poor liquidity or weak operating results as a consequence of tougher competition or higher leverage related an adverse ruling of contingent liabilities. Fitch rates Axtel as follows: -- Local currency Issuer Default Rating (IDR) 'B'; -- Foreign currency IDR 'B'; -- National scale rating 'BB-(mex) '; -- Senior Secured Notes due 2020 'B+/RR3'; -- Senior Secured Convertible Notes due 2020 'B+/RR3'. -- Senior Unsecured Notes due 2019 'B-/RR5'; -- Senior Unsecured Notes due 2017 'B-/RR5'. ======= P E R U ======= GRUPO ACP: S&P Puts 'BB+' ICR on CreditWatch Negative ----------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB+' issuer credit and issue-level ratings on Grupo ACP Inversiones Y Desarrollo (Grupo ACP) on CreditWatch with negative implications. "The CreditWatch placement follows the uncertainty regarding the ability of Grupo ACP to materialize one of its alternatives to raise funds (within the following 90 days) in order to comply with its financial obligations during 2014 and 2015," said Standard & Poor's credit analyst Alfredo Calvo. This is significant considering the drop in the Peruvian-based bank Mibanco Banco de la Microempresa's (Mibanco) profitability levels (Grupo ACP's core subsidiary), limiting the latter's dividend income and pressuring the group's financial flexibility. The rating on Grupo ACP--the ultimate non-operating holding company of several financial and nonfinancial companies in Latin America, including Mibanco (BBB/Negative/A-2)--reflects its heavy reliance on dividends from Mibanco and the group's aggressive business expansion. The rating on Grupo ACP is supported by Mibanco's "adequate" business position, "adequate" capital and earnings, "adequate" risk position, and its "average" funding and "adequate" liquidity, as S&P's criteria define these terms. The bank's stand-alone credit profile (SACP) is 'bbb'. The gap between the 'BB+' rating on Grupo ACP and the 'BBB' rating on Mibanco is due to structural subordination. Grupo ACP's debtholders are subordinate to Mibanco's senior debtholders. The group has yet to consolidate its aggressive expansion over that last couple of years. =============================== T R I N I D A D & T O B A G O =============================== * TRINIDAD & TOBAGO: Manufacturers Weigh in on Tension w/ Jamaica ----------------------------------------------------------------- RJR News reports that Trinidad & Tobago's manufacturing sector has weighed in on the simmering tension between the twin-island republic and Jamaica. Moonilal Lalchan, president of the Trinidad & Tobago Chamber of Industry and Commerce, has called for the Trinidadian Government to pacify the situation, according to RJR News. The report notes that Mr. Lalchan said Jamaica is Trinidad & Tobago's biggest Caricom trading partner and recent developments could have an adverse effect on the country's manufacturing sector. Mr. Lalchan said the worst-case scenario is that emotions run high and then there are restrictions on Trinidadian goods entering Jamaica, the report relates. Mr. Lalchan said that the Chamber spoke with its members, who indicated that there was no immediate threat, the report discloses. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, 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 * * *