/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/140213.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, February 13, 2014, Vol. 15, No. 31 Headlines A R G E N T I N A TRANSPORTADORA DE GAS: Moody's Says Debt Exchange Successful B O L I V I A * BOLIVIA: IMF Board Concludes 2013 Article IV Consultation B R A Z I L OSX BRASIL: Seeks to Reach Debt Deal with Bondholders This Week C A Y M A N I S L A N D S BRONTOLINI CORPORATION: Shareholders Receive Wind-Up Report BSI SERVICES: Shareholders Receive Wind-Up Report BUCKINGHAM BLUE: Shareholders Receive Wind-Up Report CRABEL TWO: Shareholders Receive Wind-Up Report CT DIRECTOR: Shareholders Receive Wind-Up Report DAIRY HOLDINGS: Creditors to Hold Meeting on Feb. 28 DEEPSIX LTD: Shareholders Receive Wind-Up Report DELVEST INC: Shareholders Receive Wind-Up Report DIP SUKUK: S&P Assigns 'BB' Rating to Proposed $300MM Certificates EVERETT LLC: Shareholders Receive Wind-Up Report EXECUTIVE INVESTMENTS: Shareholder Receives Wind-Up Report FOOD HOLDINGS: Creditors to Hold Meeting on Feb. 28 HESPERUS HOLDINGS: Shareholder Receives Wind-Up Report ISIDRO INTERNATIONAL: Shareholders Receive Wind-Up Report JADE OPPORTUNITIES: Shareholders Receive Wind-Up Report LITTLE SHRIMP: Shareholders Receive Wind-Up Report PINEBRIDGE CAPITAL: Shareholders Receive Wind-Up Report PRUDENCE TRADING: Shareholders Receive Wind-Up Report REGENT INVESTMENTS: Shareholders Receive Wind-Up Report RIDLEY INTERNATIONAL: Shareholders Receive Wind-Up Report ROLLING HILLS: Shareholder Receives Wind-Up Report SUCGP (F): Shareholders Receive Wind-Up Report WISDOM INVESTMENT: Shareholders Receive Wind-Up Report D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: Entry of Power Plant Improves Energy Supply J A M A I C A DIGICEL GROUP: Incurs US$198 Million Net Loss in 2013 M E X I C O SATELITES MEXICANOS: S&P Raises LT CCR to 'BBB-'; Outlook Negative P A R A G U A Y BANCO BILBAO: Moody's Hikes Deposit Rating to Ba3; Outlook Stable P U E R T O R I C O BANCO SANTANDER: Moody's Reviews 'D+' BFSR on Possible Downgrade PUERTO RICO: Fitch Downgrades Debt Ratings to 'BB' - - - - - ================= A R G E N T I N A ================= TRANSPORTADORA DE GAS: Moody's Says Debt Exchange Successful ------------------------------------------------------------ Transportadora de Gas del Sur S.A. ("TGS" B3, Stable) announced the results of the exchange offer in relation to the USD374 million principal amount of its 7.875% guaranteed senior unsecured notes due 2017 (the "old notes"). The offer reached a 67% acceptance level resulting in approximately USD250 million of debt exchanged out of the USD374 million of old notes outstanding. "Moody's view this exchange as a modest credit positive for TGS as it will extend its debt maturity profile, which more than offsets the increased cost of the new notes," said Daniela Cuan, VP Senior Analyst at Moody's. TGS's debt now has a more comfortable maturity profile, with annual payments of roughly $ 30 million from 2015 to 2017 (corresponding to the old notes that were not exchanged) and of $60 million from 2018 to 2020 (new notes resulting from the exchange), which clearly gives the company greater financial flexibility. The new notes will pay interest semi-annually the same as the old notes but at a higher coupon rate of 9,625% (old notes interest rate was 7,875%). This extension in TGS's debt maturity is important because although TGS generates strong cash flows in relation to its debt and had historically access to the capital markets, current market conditions for Argentinean companies are less favorable than in the past and the recent turmoil around the peso devaluation make access to the international debt market less certain. Annual principal payments will be comfortably managed considering that TGS's funds from operations were approximately $ 134 million for the last twelve months ending September 2013 which represented a ratio of funds from operations to debt (FFO/Debt) of 34%. Moody's expect TGS to continue generating strong internal cash flows and anticipate a ratio of FFO to Debt of no less of 20% going forward. Headquartered in Buenos Aires, Argentina, TGS is the largest transporter of natural gas within the country, delivering approximately 60% of the total gas transported in Argentina. TGS is also one of the largest natural gas processors and one of the largest marketers of natural gas liquid products in Argentina. ============= B O L I V I A ============= * BOLIVIA: IMF Board Concludes 2013 Article IV Consultation ----------------------------------------------------------- On January 27, 2014, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Bolivia. Good macroeconomic performance and active social policies since the mid-2000s have helped Bolivia to nearly triple income per capita and reduce poverty. In recent years, the economy benefitted from high international commodity prices and rising volumes of natural gas exports. Coupled with twin surpluses in the fiscal and external accounts, net international reserves have increased to almost 50 percent of gross domestic product (GDP), providing ample buffers against external shocks. Social policies have pursued ambitious redistributive and poverty reduction goals, increasing living standards of vulnerable households. Real GDP growth is projected at 6.7 percent in 2013, the highest growth rate of the last thirty years, supported by soaring hydrocarbon exports, strong private consumption, and accommodative macroeconomic policies. Growth is projected to remain above potential again in 2014, sustained by hydrocarbon exports and a moderate fiscal impulse. Notwithstanding elevated export volumes, the external current account surplus is expected to narrow in 2013 and over the medium term on the back of softer terms of trade. Food supply shocks triggered an increase in inflation in mid-2013, but the authorities responded with rapid monetary tightening and measures to improve food supply. Staff expects the authorities will succeed in anchoring inflation expectations and inflation is projected to fall to 5.5 percent by the end of 2014, though further tightening may be needed if inflationary pressures prove persistent. The fiscal stance is expected to remain expansionary, with important investment projects to industrialize the resource sector in the pipeline. The overall fiscal surplus is projected to narrow to 0.6 percent of GDP in 2013 and turn to an overall deficit of 0.4 percent of GDP in 2014. Gross public debt is expected to continue its downward trajectory to 32.5 percent of GDP by end-2013, from 40 percent of GDP in 2009. The Bolivian financial system remains solid and well capitalized, but the new Financial Services Law could alter significantly the financial landscape. The law establishes a comprehensive legal framework for the regulation of financial services, financial institutions, and financial groups. The law includes several good provisions that, if effectively implemented, will help strengthen the safety net and the integrity of the financial system. However, the law's general thrust is to subordinate financial sector activities to social objectives with instruments that could create risks to financial stability. Main features of the law include: (i) provisions to regulate lending rates and set minimum lending quotas for the productive sector and social housing; (ii) discretion to set floors on deposit rates; and (iii) mechanisms to enhance consumer protection and financial access in rural areas. Executive Board Assessment Executive Directors welcomed Bolivia's strong economic performance in 2013, which saw higher economic growth, strong fiscal and external positions, and improved standards of living. They noted that the near-term outlook is favorable, but encouraged the authorities to address some vulnerabilities and improve the policy frameworks. Directors agreed that a neutral macroeconomic policy stance is appropriate for the period ahead in view of the favorable growth outlook and the closed output gap. Accordingly, they encouraged the authorities to avoid a pro-cyclical fiscal stimulus and save budgetary resources to respond to adverse external shocks. More broadly, Directors stressed the need to improve the non- hydrocarbon fiscal balance to secure medium-term sustainability. Measures could include better targeting fuel subsidies, enhancing the efficiency of public investment and social transfers, and implementing tax administration reforms. Taking note of the authorities' plans, Directors also encouraged the adoption of a medium-term fiscal framework to manage resource wealth, balancing intergenerational equity against immediate development needs. Directors commended the authorities' response to the rise in inflation in mid-2013. They generally agreed that further monetary tightening could be needed if second-round effects prove persistent. Directors noted that continued reliance on market- based allocation of financial resources is important and recommended that central bank lending to public enterprises be discontinued. They considered that a savings fund established in line with international best practices could help channel such lending. Directors generally saw merit in gradually allowing greater exchange rate flexibility to help absorb external shocks. Directors took note of the sound state of Bolivia's financial sector but stressed the need to continue to strengthen supervision. While recognizing the social objectives of the new Financial Services Law, Directors considered that less distortionary instruments to promote financial inclusion could be employed. Directors welcomed Bolivia's strengthened framework against money laundering and terrorist financing and urged its implementation. Directors commended the authorities' progress in reducing poverty. They called for continued efforts to address longstanding social challenges, which could be grounded in a comprehensive evaluation of existing programs. They also noted that the changing world hydrocarbon market calls for broadening the economic base and raising productivity to sustain strong growth. In this regard, Directors emphasized the importance of improving the business climate, including by creating a predictable legal framework, to promote private sector activity. Greater investment in infrastructure and human capital will also be critical. =========== B R A Z I L =========== OSX BRASIL: Seeks to Reach Debt Deal with Bondholders This Week --------------------------------------------------------------- Luciana Magalhaes, writing for The Wall Street Journal, reported that Brazilian shipbuilding firm OSX Brasil SA, controlled by businessman Eike Batista, will try to reach agreements with its bondholders by the end of this week as it struggles to exit bankruptcy protection, a top executive said on Feb. 12. According to the report, OSX and advisers for its international bondholders plan to meet in New York on Feb. 13 and 14 to discuss a plan that could include a new payment schedule and give the company more time to meet a March interest payment, said Claudio Antonio da Silva Zuicker, OSX's chief financial officer and head of investor relations. The talks will include the possibility of lowering the daily rate that OSX is charging sister company Oleo e Gas Participacoes SA for use of its OSX-3 floating, production, storage and offloading vessel, currently in operation at the Tubarao Martelo field, the report related. Oleo e Gas was formerly known as OGX Petroleo e Gas Participacoes SA, the flagship company of Mr. Batista's business empire. OSX has $500 million in bonds outstanding and missed an $11.6 million interest payment in December, the report further related. Its bonds, which are guaranteed by the OSX-3 vessel, mature in 2015 and carry a 9.25% coupon. "We are in negotiations with our bondholders and with Oleo e Gas to create a package that will leave OSX up-to-date on its payments," Mr. Zuicker said, the report cited. About OSX Brasil OSX Brasil, which operates a shipyard north of Rio de Janeiro, filed for protection from creditors in November on liabilities of BRL5.34 billion (US$2.30 billion). OSX Brasil, part of Mr. Batista's troubled Grupo EBX, filed for bankruptcy after Oleo e Gas Participacoes SA, formerly known as OGX Petroleo e Gas Participacoes, filed for bankruptcy Oct. 30, according to Reuters. Reuters notes that the bankruptcy petition left OSX's ship-leasing unit, which owns three floating, production, storage and offloading (FPSO) ships, out of the petition as it seeks buyers for the ships and deals with bondholders and banks that financed them. A deal to sell the OSX-2 FPSO, which is in storage in Malaysia, could be complete in the first half of 2014, Mr. Zucker said, Reuters relates. OSX is renegotiating its US$263,000 a day lease- fee on the OSX-1 in Tubarao Azul, Mr. Zucker added. ========================== C A Y M A N I S L A N D S ========================== BRONTOLINI CORPORATION: Shareholders Receive Wind-Up Report ----------------------------------------------------------- The shareholders of Brontolini Corporation Ltd. received on Dec. 27, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. 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 BSI SERVICES: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of BSI Services (Cayman) Limited received on Jan. 29, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 569 Mountain View Wyoming 82939 USA Telephone: (307) 782 6754 Facsimile: (307) 782 7298 BUCKINGHAM BLUE: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Buckingham Blue Ltd. received on Dec. 27, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. 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 CRABEL TWO: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of Crabel Two Plus Feeder II Limited received on Jan. 17, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands CT DIRECTOR: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of CT Director Ltd received on Jan. 29, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited Telephone: 949 8666 Facsimile: 949 0626 P.O. Box 694 Grand Cayman Cayman Islands DAIRY HOLDINGS: Creditors to Hold Meeting on Feb. 28 ---------------------------------------------------- The creditors of Dairy Holdings Limited will hold a meeting on Feb. 28, 2014, at 2:00 p.m., at the office of Zolfo Copper (Cayman) Limited, 38 Market Street, 2nd Floor of Canella Court in Camana Bay, Grand Cayman, Cayman Islands. Creditors are required to submit a completed proxy form and confidentiality agreement by Feb. 27, 2014, to be able to participate in the meeting. DEEPSIX LTD: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of Deepsix Ltd received on Jan. 29, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited Telephone: 949 8666 Facsimile: 949 0626 P.O. Box 694 Grand Cayman Cayman Islands DELVEST INC: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of Delvest Inc received on Jan. 31, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited Telephone: 949 8666 Facsimile: 949 0626 P.O. Box 694 Grand Cayman Cayman Islands DIP SUKUK: S&P Assigns 'BB' Rating to Proposed $300MM Certificates ------------------------------------------------------------------ Standard & Poor's Ratings Services said that it assigned its 'BB' issue rating to proposed $300 million unsecured trust certificates to be issued by DIP Sukuk Ltd. DIP Sukuk is a special-purpose vehicle that is incorporated in the Cayman Islands and affiliated with Dubai-based property investment company Dubai Investments Park Development Company LLC (DIPDC). The issue rating is in line with the corporate credit rating on DIPDC. The recovery rating on the unsecured trust certificates is '3', indicating S&P's expectation of meaningful (50%-70%) recovery in the event of a payment default. RECOVERY ANALYSIS The recovery rating on the unsecured trust certificates reflects S&P's view of the long-term nature of DIPDC's operating leases and low capital requirements. The recovery rating is constrained by the certificates' unsecured nature and our view of the relatively creditor-unfriendly insolvency regime in the United Arab Emirates (UAE). S&P understands that DIPDC will use about 75% of the proceeds from the trust certificates to repay existing debt, and the remaining 25% for capital expenditure and general corporate expenses. DIPDC's post-transaction debt structure will only comprise the proposed unsecured trust certificates. S&P further understands that the unsecured trust certificates will include three financial maintenance covenants specifying gross leverage, interest coverage, and a minimum property value. The certificates will also include certain nonfinancial covenants. S&P's hypothetical default scenario projects a default in 2018, when the unsecured trust certificates need to be refinanced. In S&P's scenario, the default is triggered by a weakening of the economy in the UAE, which reduces demand for industrial and commercial properties, as well as property values and rental yields. While S&P's estimated discrete asset valuation results in materially higher recovery prospects than the 50%-70% range, S&P caps its recovery rating on the unsecured trust certificates at '3' in accordance with S&P's criteria for rating unsecured debt. Simulated default assumptions: -- Year of default: 2018 -- Jurisdiction: UAE Simplified waterfall: -- Net enterprise value (after 7% administration costs): UAE dirham (AED) 2.19 billion -- Unsecured debt claims: AED1.13 billion -- Recovery expectation: 50%-70% *All debt amounts include six months of prepetition interest and a fully drawn guarantee facility. EVERETT LLC: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of Everett LLC received on Jan. 31, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited Telephone: 949 8666 Facsimile: 949 0626 P.O. Box 694 Grand Cayman Cayman Islands EXECUTIVE INVESTMENTS: Shareholder Receives Wind-Up Report ---------------------------------------------------------- The shareholder of Executive Investments Inc received on Jan. 29, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited Telephone: 949 8666 Facsimile: 949 0626 P.O. Box 694 Grand Cayman Cayman Islands FOOD HOLDINGS: Creditors to Hold Meeting on Feb. 28 --------------------------------------------------- The creditors of Food Holdings Limited will hold a meeting on Feb. 28, 2014, at 9:00 a.m., at the office of Zolfo Copper (Cayman) Limited, 38 Market Street, 2nd Floor of Canella Court in Camana Bay, Grand Cayman, Cayman Islands. Creditors are required to submit a completed proxy form and confidentiality agreement by Feb. 27, 2014, to be able to participate in the meeting. HESPERUS HOLDINGS: Shareholder Receives Wind-Up Report ------------------------------------------------------ The shareholder of Hesperus Holdings, Ltd received on Jan. 29, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited Telephone: 949 8666 Facsimile: 949 0626 P.O. Box 694 Grand Cayman Cayman Islands ISIDRO INTERNATIONAL: Shareholders Receive Wind-Up Report --------------------------------------------------------- The shareholders of Isidro International Ltd. received on Dec. 27, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. 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 JADE OPPORTUNITIES: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Jade Opportunities Ltd. received on Dec. 27, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. 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 LITTLE SHRIMP: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Little Shrimp, Ltd received on Feb. 4, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Britannia Corporate Management Ltd c/o Gary F. Oakley 196 Raleigh Quay Grand Cayman, KY1-1104 Cayman Islands Telephone (345) 949 2700 PINEBRIDGE CAPITAL: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Pinebridge Capital Recovery Partners, Ltd. received on Jan. 7, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Pinebridge Investments LLC 399 Park Avenue New York NY 10022 USA PRUDENCE TRADING: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Prudence Trading Ltd received on Dec. 27, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. 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 REGENT INVESTMENTS: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Regent Investments received on Jan. 15, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Limited c/o Eva Moore Telephone: (345) 949 0880 Facsimile: (345) 949 0881 One Capital Place, 4th Floor P.O. Box 847, George Town, Grand Cayman, KY1-1103 Cayman Islands RIDLEY INTERNATIONAL: Shareholders Receive Wind-Up Report --------------------------------------------------------- The shareholders of Ridley International Ltd. received on Jan. 31, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Tim Cartwright Hawksford 15, Esplanade St. Helier Jersey Channel Islands, JE1 1RB, Telephone: +44 1534 740170 Facsimile: +44 1534 740074 ROLLING HILLS: Shareholder Receives Wind-Up Report -------------------------------------------------- The shareholder of Rolling Hills Company received on Jan. 29, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited Telephone: 949 8666 Facsimile: 949 0626 P.O. Box 694 Grand Cayman Cayman Islands SUCGP (F): Shareholders Receive Wind-Up Report ---------------------------------------------- The shareholders of SUCGP (F) Ltd received on Jan. 10, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Ltd. Landmark Square, 1st Floor 64 Earth Close, West Bay Beach P.O. Box 715, Grand Cayman KY1-1107 Cayman Islands Facsimile: +1 (345) 769-9351 WISDOM INVESTMENT: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of Wisdom Investment Ltd. received on Dec. 27, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. 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 =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: Entry of Power Plant Improves Energy Supply ----------------------------------------------------------------- Dominican Today reports that Dominican Republic's State-owned Electric Utility (CDEEE) said the energy service is now stable with the entry of AES Andres, the country's biggest power plant, which had been offline for scheduled maintenance since Jan. 27. In a statement, the CDEEE said it supplies around 77% of the national demand, according to Dominican Today. The report relates that the CDEEE said AES Andres was subjected to test runs and service has improved since, contrary January, with outages of several circuits, when the plant located in Boca Chica was taken off line. The rolling blackouts affected the East region and affected the aqueducts in Greater Santo Domingo's eastern districts, the report notes. ============= J A M A I C A ============= DIGICEL GROUP: Incurs US$198 Million Net Loss in 2013 ----------------------------------------------------- Jamaica Gleaner reports that Digicel Group Limited incurred a net loss of US$198 million last year, as disclosed by Fitch ratings agency in its most recent report on the telecom. Fitch gave Digicel Group a stable B rating on its long-term foreign currency debt and said the outlook for the company was stable. Digicel Group finances its capital programs through debt, including bond issues, according to Jamaica Gleaner. The report notes that Fitch said Digicel Group made a loss of US$198.491 million -- the equivalent of J$20 billion -- at its financial year ending March 31, 2013. The report notes that the loss was the first since 2010, when the company bled US$131.679 million. Chairman and Founder Denis O'Brien has previously confirmed that he is currently seeking a special dividend from the company, which reports have put at US$650 million, the report relates. The report notes that the key drivers behind Fitch's rating of Digicel include the company's high leverage and solid operations. The company was estimated to have $5.85 billion of debt last year, the report relates. "The ratings are constrained by high leverage and exposure to low- rated countries, as about 40 per cent of its cash flow is generated from Jamaica and Haiti," the report quoted the ratings agency as saying. But that concern was tempered by the company's diversified operations, the report adds. About Digicel Group Headquartered in Jamaica, Digicel Group Limited provides mobile telecommunications services in the Caribbean and the Central American markets. The company's services include rollover minutes, GPRS data services, prepaid roaming, SMS to e-mail, and multimedia messaging, as well as broadband. As reported in the Troubled Company Reporter on Dec 13, 2013, Moody's Investors Service has affirmed Digicel Group Limited B2 Corporate Family Rating (CFR), B2-PD Probability of Default Rating and the existing debt instrument ratings at DGL and Digicel Limited ("DL") following the company's recent announcement that it plans to issue up to $500 million of add-on notes to DGL's existing $1.5 billion 8.25% senior unsecured notes due 2020. The rating outlook remains stable. =========== M E X I C O =========== SATELITES MEXICANOS: S&P Raises LT CCR to 'BBB-'; Outlook Negative ------------------------------------------------------------------ Standard & Poor's Ratings Services raised its long-term corporate credit rating on Satelites Mexicanos, S.A. de C.V. (Satmex) to 'BBB-' from 'B'. At the same time, S&P raised the issue level rating on Satmex's outstanding senior secured notes to 'BBB-' from 'B' and withdrew the notes' recovery rating of '3' because its recovery rating methodology does not apply if the ratings are 'BBB-' or higher. S&P removed all ratings from CreditWatch positive where it placed them on Aug. 2, 2013. The outlook is negative. "The upgrade reflects Satmex's announcement that Eutelsat completed the acquisition of 100% of its share capital. It also reflects our expectation that noteholders will not trigger the change-of-control acceleration clause in Satmex's $360 million outstanding bonds," said Standard & Poor's credit analyst Marcela Due�as. We view Satmex as a "highly strategic" subsidiary of Eutelsat. Satmex's services are integral to Eutelsat's core services and important for Eutelsat's growth strategy in the growing Latin American market and therefore it is unlikely the parent will sell Satmex in the medium term. Satmex offers satellite services with coverage over North, Central and South America with an existing fleet of three satellites and plans to launch two more by mid-2016. Although Satmex only represents 7% of Eutelsat's consolidated revenues, the acquisition provides Eutelsat access to an 11% market share in Latin America, it has boosted its activity in the Americas, and reduced its reliance on the European market. Therefore, Eutelsat will likely provide Satmex with support under a financial distress scenario. Additionally, we believe Satmex will be closely linked to Eutelsat's reputation. For subsidiaries deemed as "highly strategic," parent support serves as the rationale for rating them one notch below the rating on the parent. S&P believes that if Eutelsat fully integrates Satmex as another division of its business portfolio and rebrands its operations so that both companies share the same name or brand S&P could consider revising the group support to "core." =============== P A R A G U A Y =============== BANCO BILBAO: Moody's Hikes Deposit Rating to Ba3; Outlook Stable ----------------------------------------------------------------- Moody's Investors Service has upgraded to Ba3, from B1, the long- term global foreign-currency deposit ratings of Banco Bilbao Vizcaya Argentaria Paraguay S.A. (BBVA Paraguay), Banco Continental S.A.E.C.A. (Continental) and Banco Regional S.A.E.C.A. (Regional). The Not Prime short-term global foreign currency deposit rating of all three banks remains unchanged. The outlook on all ratings is stable. The rating actions follow Moody's upgrade of Paraguay's sovereign ratings, including the government bond rating and the country ceilings for bonds and deposits, in local and foreign currency. Please refer to " Moody's upgrades Paraguay's sovereign rating to Ba2 from Ba3, and changes outlook to positive" announced on February 4th, 2014. The following ratings were upgraded: Banco Bilbao Vizcaya Argentaria Paraguay S.A.: Foreign currency deposit rating to Ba3/Not Prime, from B1/Not Prime, stable outlook Banco Continental S.A.E.C.A.: Foreign currency deposit rating to Ba3/Not Prime, from B1/Not Prime, stable outlook Banco Regional S.A.E.C.A.: Foreign currency deposit rating to Ba3/Not Prime, from B1/Not Prime, stable outlook Ratings Rationale The upgrade of the long-term foreign-currency deposit ratings of BBVA Paraguay, Continental and Regional are the direct result of Moody's raising Paraguay's foreign-currency deposits ceiling to Ba3, from B1. All three banks operate universal banking franchises and enjoy dominant market shares that sustain pricing power and earnings generation. They have well-defined footprints in the corporate and SMEs lending segments, although their relatively high credit risk concentration in the agribusiness sector could add volatility to earnings and asset quality. Regional and Continental have become the largest banks by loans and deposits in recent years, followed by BBVA Paraguay, ranked fourth. BBVA Paraguay is headquartered in Asuncion, Paraguay, and it had assets of $2 billion and equity of $168 million as of September 2013. Banco Continental S.A.E.C.A. is headquartered in Asuncion, Paraguay, and it had assets of $3 billion and equity of $272 million as of September 2013. Banco Regional S.A.E.C.A. is headquartered in Encarnacion, Paraguay, and it had assets of $2.5 billion and equity of $203 million as of September 2013. ==================== P U E R T O R I C O ==================== BANCO SANTANDER: Moody's Reviews 'D+' BFSR on Possible Downgrade ---------------------------------------------------------------- Moody's Investors Service placed on review for downgrade certain ratings of three Puerto Rican banks, including Banco Santander Puerto Rico (BSPR), Popular, Inc. and FirstBank Puerto Rico (FirstBank). The following ratings were placed on review: BSPR's standalone bank financial strength rating (BFSR)/baseline credit assessment (BCA) of D+/ba1 The long-term ratings of Popular, Inc. and its subsidiaries (collectively referred to as 'Popular'), including Banco Popular de Puerto Rico's (the lead bank) standalone BFSR/BCA of D/ba2 The long-term ratings of FirstBank, including its standalone BFSR/BCA of E+/b2 Additionally, the following ratings were affirmed: BSPR's supported deposit and debt ratings because those ratings benefit from the bank's affiliation with its US affiliate, Santander Bank, N.A. (deposits Baa1 stable, standalone BFSR/BCA C- /baa1 stable). Following the affirmation, the outlook on the supported ratings is stable. The ratings of Doral Financial Corporation (senior unsecured debt at Caa3 negative) The short-term ratings of Popular and FirstBank The ratings of the senior bonds issued by BSPR and Doral Financial Corporation through the Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Facilities Financing Authority (AFICA) The actions follow Moody's 7 February 2014 action to downgrade the general obligation (GO) rating of the Commonwealth of Puerto Rico to Ba2 with a negative outlook from Baa3 (see press release "Moody's downgrades Puerto Rico GO and related bonds to Ba2, notched bonds to Ba3 and COFINA bonds to Baa1, Baa2; outlook negative," available on moodys.com). Ratings Rationale Moody's said the reviews for downgrade will focus on the potential effect of further deterioration in the Puerto Rican economy and/or the commonwealth's fiscal condition on the credit profiles of BSPR, Popular and FirstBank. Puerto Rico's economy is in the midst of a protracted recession that began in 2006, and it continues to be challenged by high unemployment, low workforce participation, high poverty levels compared to the US mainland, a declining population, and weakness in its key pharmaceutical sector. This economic weakness, combined with years of deficit financing, pension underfunding and budgetary imbalance, have now put the commonwealth in a position where its debt load and fixed costs are high, its liquidity is narrow, and its market access has become constrained. During the review, Moody's will re-evaluate the potential credit losses in the banks' loan and securities portfolios, including direct and indirect exposures to the commonwealth, under more adverse scenarios. The rating agency is concerned that the banks' high levels of non-performing assets could lead to significant losses if conditions do not improve. Moody's will also consider the banks' willingness to take on additional exposure to the commonwealth. Moody's added that it will assess the impact of ongoing market volatility on the banks' funding positions. Although the banks' deposit flows have remained steady during this period of heightened volatility, Moody's will assess each bank's contingency funding plans in light of further prolonged market uncertainties. On Review for Possible Downgrade: Issuer: Banco Santander Puerto Rico Bank Financial Strength Rating, Placed on Review for Possible Downgrade, currently D+ Baseline Credit Assessment, Placed on Review for Possible Downgrade, currently ba1 Issuer: Banco Popular de Puerto Rico Bank Financial Strength Rating, Placed on Review for Possible Downgrade, currently D Baseline Credit Assessment, Placed on Review for Possible Downgrade, currently ba2 Adjusted Baseline Credit Assessment, Placed on Review for Possible Downgrade, currently ba2 Senior Unsecured Deposit Rating, Placed on Review for Possible Downgrade, currently Ba2 Issuer Rating, Placed on Review for Possible Downgrade, currently Ba3 OSO Rating, Placed on Review for Possible Downgrade, currently Ba3 Issuer: Popular, Inc. Senior Unsecured Medium-Term Note Program, Placed on Review for Possible Downgrade, currently (P)B1 Multiple Seniority Medium-Term Note Program, Placed on Review for Possible Downgrade, currently (P)B1 Multiple Seniority Medium-Term Note Program, Placed on Review for Possible Downgrade, currently (P)B2 Junior Subordinated Shelf, Placed on Review for Possible Downgrade, currently (P)B3 Non-cumulative Preferred Stock, Placed on Review for Possible Downgrade, currently Caa1 (hyb) Issuer: Popular Capital Trust I Preferred Stock, Placed on Review for Possible Downgrade, currently B3 (hyb) Preferred Stock Shelf, Placed on Review for Possible Downgrade, currently (P)B3 Issuer: Popular Capital Trust II Preferred Stock, Placed on Review for Possible Downgrade, currently B3 (hyb) Preferred Stock Shelf, Placed on Review for Possible Downgrade, currently (P)B3 Issuer: Popular Capital Trust III Preferred Stock Shelf, Placed on Review for Possible Downgrade, currently (P)B3 Issuer: Popular North America Capital Trust I Preferred Stock, Placed on Review for Possible Downgrade, currently B3 (hyb) Issuer: Popular North America, Inc. Senior Unsecured Regular Bond/Debenture, Placed on Review for Possible Downgrade, currently B1 Senior Unsecured Medium-Term Note Program, Placed on Review for Possible Downgrade, currently (P)B1 Multiple Seniority Medium-Term Note Program, Placed on Review for Possible Downgrade, currently (P)B1 Multiple Seniority Medium-Term Note Program, Placed on Review for Possible Downgrade, currently (P)B2 Issuer: BanPonce Trust I Preferred Stock, Placed on Review for Possible Downgrade, currently B3 (hyb) Issuer: FirstBank Puerto Rico Bank Financial Strength Rating, Placed on Review for Possible Downgrade, currently E+ Baseline Credit Assessment, Placed on Review for Possible Downgrade, currently b2 Adjusted Baseline Credit Assessment, Placed on Review for Possible Downgrade, currently b2 Senior Unsecured Deposit Rating, Placed on Review for Possible Downgrade, currently B2 Issuer Rating, Placed on Review for Possible Downgrade, currently B3 OSO Rating, Placed on Review for Possible Downgrade, currently B3 Outlook Actions: Issuer: Banco Santander Puerto Rico Outlook, Changed To Rating Under Review From Stable(m) Issuer: Banco Popular de Puerto Rico Outlook, Changed To Rating Under Review From Negative Issuer: Popular, Inc. Outlook, Changed To Rating Under Review From Negative Issuer: Popular Capital Trust I Outlook, Changed To Rating Under Review From Negative Issuer: Popular Capital Trust II Outlook, Changed To Rating Under Review From Negative Issuer: Popular Capital Trust III Outlook, Changed To Rating Under Review From Negative Issuer: Popular North America Capital Trust I Outlook, Changed To Rating Under Review From Negative Issuer: Popular North America, Inc. Outlook, Changed To Rating Under Review From Negative Issuer: BanPonce Trust I Outlook, Changed To Rating Under Review From Negative Issuer: FirstBank Puerto Rico Outlook, Changed To Rating Under Review From Negative Issuer: Doral Financial Corporation Outlook, Remains Negative Affirmations: Issuer: Banco Santander Puerto Rico Adjusted Baseline Credit Assessment, Affirmed baa1 Senior Unsecured Deposit Rating, Affirmed Baa1 Short-term Deposit Rating, Affirmed P-2 Issuer Rating, Affirmed Baa1 OSO Rating, Affirmed Baa1 Short-term OSO Rating, Affirmed P-2 Senior Unsecured Bank Note Program, Affirmed (P)Baa1 Senior Unsecured Bank Note Program, Affirmed (P)P-2 Senior Unsecured Commercial Paper, Affirmed P-2 Issuer: Banco Popular de Puerto Rico Short-term Deposit Rating, Affirmed NP Short-term OSO Rating, Affirmed NP Issuer: FirstBank Puerto Rico Short-term Deposit Rating, Affirmed NP Short-term OSO Rating, Affirmed NP Issuer: Doral Financial Corporation Senior Unsecured Regular Bond/Debenture, Affirmed Caa3 Issuer: P.R. Ind Tour Ed Med & Env Ctl Facs Fin Auth (AFICA) Senior Unsecured Revenue Bonds Jun 1, 2018, Affirmed Baa1 Senior Unsecured Revenue Bonds Dec 1, 2019, Affirmed Baa1 Senior Unsecured Revenue Bonds Dec 1, 2021, Affirmed Baa1 Senior Secured Revenue Bonds Dec 1, 2014, Affirmed Caa3 Senior Secured Revenue Bonds Jun 1, 2026, Affirmed Caa3 Senior Secured Revenue Bonds Dec 1, 2029, Affirmed Caa3 Senior Unsecured Revenue Bonds Dec 1, 2029, Affirmed Caa3 PUERTO RICO: Fitch Downgrades Debt Ratings to 'BB' -------------------------------------------------- Fitch Ratings has downgraded the ratings for these Commonwealth of Puerto Rico debt to 'BB' from 'BBB-': -- Commonwealth general obligation (GO) bonds; -- Puerto Rico Public Building Authority government facilities revenue bonds guaranteed by the commonwealth; -- Puerto Rico Aqueduct and Sewer Authority (PRASA) commonwealth guaranty revenue bonds; -- Employees Retirement System of the Commonwealth of Puerto Rico pension funding bonds. The ratings have been removed from Rating Watch Negative; however, the Rating Outlook, which indicates the direction the ratings are likely to move over a one- to two-year period, is Negative. The current action does not affect the ratings that Fitch assigns to bonds issued by the Puerto Rico Sales Tax Financing Corporation (COFINA). Those bonds are secured by the commonwealth's sales and use tax and insulated from the commonwealth's general credit strain. Their ratings are driven by economic and revenue performance. SECURITY The GO bonds are a full faith and credit obligation of the Commonwealth of Puerto Rico that benefit from a constitutional first claim on commonwealth revenues. The ratings on the public building authority and PRASA bonds reflect the guaranty of the commonwealth's full faith, credit, and taxing power. The pension funding bonds are payable from and secured by a pledge of statutorily required employer contributions to the system; the commonwealth is the largest contributor. KEY RATINGS DRIVERS REDUCED FINANCIAL FLEXIBILITY PROMPTS DOWNGRADE: Fitch placed the GO and related ratings on Negative Watch in November 2013, citing the challenge facing the commonwealth in maintaining financial flexibility in light of the deterioration in capital markets access. Recent downgrades have triggered new liquidity requirements and lowered expectations for the market available for the commonwealth's debt going forward, though there have been no significant negative developments regarding the commonwealth's finances or economy since November. In the context of other credit challenges related to a weak economy and elevated liability levels, Fitch believes that these additional hurdles preclude the commonwealth maintaining an investment-grade credit profile. FISCAL MANAGEMENT EFFECTIVE AND COMMITTED: The commonwealth's management has responded quickly and decisively to challenges that have arisen in recent years and the current administration has made significant progress in addressing longstanding credit issues. Fitch believes the commitment of management to achieving fiscal balance and honoring commitments to bondholders remains strong, and the governor recently announced a plan to balance the budget next year, one year earlier than previously expected. ECONOMIC PERFORMANCE THE KEY FACTOR: The commonwealth's economy has been in recession since 2006. Initial signs of recovery in 2012 appear to have been more a reflection of economic stimulus than underlying growth and subsequent economic performance has been weak. Although some recent information suggests nascent improvement, results are mixed and it is too soon to tell whether the economy will stabilize this year. Fitch believes that the ultimate success of efforts to put the commonwealth's finances on a sustainable path will be dictated by the performance of the economy. DEBT AND RETIREE BENEFIT LIABILITIES HIGH: Puerto Rico's bonded debt levels and unfunded pension liabilities are very high relative to U.S. states, with a large amount of outstanding debt issued for deficit financing purposes. This has created spending pressures and limited the commonwealth's ability to use additional leveraging. Pension funding will remain exceptionally low even with the significant pension reform effort undertaken by the current administration. MARKET ACCESS IMPAIRED: The commonwealth's capital markets access deteriorated steeply in 2013 despite the action taken to address longstanding credit challenges. Reliable external market access in line with market norms is important to long-term stability. GO PLEDGE STRONG: Puerto Rico's GO pledge is unusually strong, providing a constitutional first claim on commonwealth revenues. The commonwealth cannot file for bankruptcy. RATING SENSITIVITIES MARKET ACCESS: The current rating assumes that the commonwealth will be able to execute a sizable transaction in the near term to bolster liquidity. An inability to access the market would be a significant credit concern and cause for a downgrade. EVIDENCE OF ECONOMIC STABILIZATION: Maintenance of the current rating will require stabilization in economic performance and emergence from the long recessionary period. ACHIEVABILITY OF BUDGET TARGETS: Failure to show continued progress toward structural balance would pressure the rating. CREDIT PROFILE Puerto Rico's current management has repeatedly shown its ability and willingness to take quick action to address financial challenges and external market concerns, much of which has required legislative action. However, underlying the need for these measures is the very difficult economic, financial, and market situation that management continues to confront. Fitch downgraded Puerto Rico's GO debt rating to 'BBB-' with a Negative Outlook in March 2013, reflecting economic and revenue underperformance that significantly increased the size of the operating imbalance for the then-current fiscal year and the gap presented to the commonwealth as it developed a budget for fiscal 2014. The commonwealth subsequently took numerous measures to bolster finances and strengthen fundamental credit factors. However, in the same period, the capital markets environment for the commonwealth's debt deteriorated considerably. In addition, economic indicators continued to show material weakness, and the commonwealth reduced its forecast for economic performance. In November 2013, Fitch placed the commonwealth's GO and related ratings on Rating Watch Negative, primarily reflecting the new risk of constrained market access. Since that time, the administration has taken additional steps to support the credit, including enactment of teachers' pension reform, various measures to improve GDB liquidity, and numerous economic development initiatives. Spending is reportedly under budget, and the commonwealth recently announced a reduction in the deficit forecast for the current and coming fiscal years. On the downside, the sales tax changes included in the current-year budget have failed to produce the expected additional revenues. The January 2014 revenue forecast revision, while unchanged in aggregate, reflects an even larger reliance than previously budgeted on corporate taxes, which are currently overperforming estimates. Last week's downgrades have triggered potential new liquidity demands of about $1 billion; although Fitch expects that the commonwealth will be able to meaningfully lower this amount through negotiations with relevant counterparties, such demands will still consume some of the commonwealth's limited current market capacity in the near term. Just as importantly, Fitch believes that the non-investment-grade ratings will reduce the market available for the commonwealth's debt going forward, thereby diminishing financial flexibility as the administration moves forward with its fiscal stabilization efforts. The commonwealth has announced plans to come to market with a sizable transaction in the coming weeks that is expected to be sold primarily to non-traditional investors. *********** 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. 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, and Peter A. Chapman, Editors. Copyright 2014. 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 * * *