/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/140501.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, May 1, 2014, Vol. 15, No. 85 Headlines B R A Z I L BANCO DO ESTADO: Moody's Assigns D Bank Financial Strength Rating BES INVESTIMENTO: Moody's Assigns Ba3 Sr. Secured Debt Rating BRAZIL: Broad Inflation Measure Eased More Than Expected in April BRAZIL: Fitch Says Operating Efficiency Key for Water Operators MGI-MINAS: Moody's Confirms Ba1 Rating on 3rd Debenture Issuance MILLS ESTRUTURAS: Moody's Rates BRL200MM Sr. Unsec. Debentures Ba2 OLEO E GAS: S&P Withdraws 'D' CCR at Issuer's Request C A Y M A N I S L A N D S ALL SEASONS: Creditors' Proofs of Debt Due May 22 CHALLENGER INVESTMENT: Creditors' Proofs of Debt Due May 22 J-MEZZ TMK: Creditors' Proofs of Debt Due May 13 J-MEZZ TMK JAPAN: Creditors' Proofs of Debt Due May 13 JADES ASIA: Creditors' Proofs of Debt Due May 22 K3 CAPITAL: Creditors' Proofs of Debt Due May 14 NAPIER PARK: Creditors' Proofs of Debt Due May 13 NAPIER PARK MASTER: Creditors' Proofs of Debt Due May 13 OXFORD INSURANCE: Commences Liquidation Proceedings TSF0301: Creditors' Proofs of Debt Due May 22 C H I L E MASISA S.A.: Fitch Assigns 'BB' Rating to USD300MM Sr. Notes D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: UN Revises Growth Forecast to 5% E L S A L V A D O R BANCO AGRICOLA: Fitch Affirms Int'l Classification of IDR at BB + BANCO DAVIVIENDA: Fitch Affirms LT International Rating at 'BB +' FONAVIPO: Fitch Affirms Long-term Rating at 'B + (slv)' M E X I C O CENTRO VILLAHERMOSA: Moody's Assigns Ba3 Global Scale Rating V E N E Z U E L A VENEZUELA: Not Paying Airlines US$3.9 Billion Promised, IATA Says - - - - - =========== B R A Z I L =========== BANCO DO ESTADO: Moody's Assigns D Bank Financial Strength Rating ----------------------------------------------------------------- Moody's Investors Service has assigned Banco do Estado de Sergipe S.A. (Banese) a bank financial strength rating of D, which maps to a ba2 baseline credit assessment in the global rating scale. At the same time, Moody's assigned Banese Ba2 and Not Prime global local- and foreign-currency long- and short-term deposit ratings, and A1.br and BR-1 Brazilian national scale long- and short-term deposit ratings. All ratings have a stable outlook. The following ratings were assigned to Banco do Estado de Sergipe S.A. (Banese): Bank financial strength rating: D, stable outlook Long-term global local-currency deposit rating: Ba2, stable outlook Short-term global local-currency deposit rating: Not Prime Long-term foreign-currency deposit rating: Ba2, stable outlook Short-term foreign-currency deposit rating: Not Prime Long-term Brazilian national scale deposit ratings: A1.br Short-term Brazilian national scale deposit ratings: BR-1 Ratings Rationale The ba2 standalone credit assessment acknowledges Banese's entrenched local franchise as the wholly-owned bank of the State of Sergipe, with a relevant 30% market share in the state's deposits and loans. Though small in size, with total assets of approximately USD1 billion, Banese's defensible position in the local market derives from its focus on banking the state's civil servants as well as small and medium size companies, which are intrinsically connected to Sergipe's economy. As such, the bank's adequate business diversification, access to inexpensive deposits, and low-risk operations sustain earnings recurrence and asset quality, which are key rating drivers. Banese's granular loan portfolio reflects its predominantly retail - oriented strategy, with 41% composed of low-risk payroll loans to individuals and 24% of secured loans to small and medium size companies. The bank also has a growing credit card finance operation that provides for 30% market share in the state. Other direct lending activities, including mortgage and long-term financing sourced from development bank BNDES, result in an overall low risk profile, as indicated by non-performing loan ratios that have been consistently below 1% for the past five past years. Banese's asset quality also benefits from improved risk management and controls, while good capitalization and reserve coverage offer protection against credit losses. Moody's noted that the bank's profitability compares favorably to that of other state-owned banks in Brazil, aided by comfortable net interest margins of 10.11% and low credit costs. The bank's steady earnings generation is the key contributor to capital, with dividend payout at average levels of 50% for the past three years. Core capitalization ratios of 10.6% are in line the system's. However, competition by large retail banks, in particular in its core product (payroll loans), and recent efforts to diversify funding sources have resulted in margins narrowing by 300 basis points over the past 12 months. While loan-to-deposit ratio remains adequate at 62.16% in 2013, well below the industry's 110%, Banese's management is seeking to diversify funding sources to improve its liquidity gap and support growth. A larger share of market funds in its balance sheet, however, may affect the bank's profitability Banese's business potential is somewhat limited because its footprint is constrained within Sergipe, one of the smallest and poorest states in Brazil. The flat loan book in 2013 is a reflection of the low demand from local corporate clients in the period, and the bank's selective credit guidelines in face of the slow economic growth. Nevertheless, Sergipe has grown slightly above the national average, driven by government spending and growing regional demand by an emerging middle class. The key challenges facing the bank and its Ba2 rating are (1) increasing competition that may pressure financial margins as Banese is compelled to defend its market share; (2) weakening asset quality and capitalization, if the bank pursues a robust expansion into higher risk assets to defend its market position, a strategy that could result in adverse selection, and (3) inherent risk of political influence related to its ownership structure, subject to frequent changes in management and policy mandate. As a state-owned bank, Banese's strategy is aligned to the state government's economic and political plans, which may require the bank's support to social and development programs. Its role as a government agent provides the bank with stable customer and deposit bases, but it could lead to potential asset quality and earnings pressures that would weaken future profitability and capital-replenishment capacity. Banese's Ba2 global local-currency deposit rating is aligned to the ba2 baseline credit assessment, and therefore, does not incorporate any support assessment from its shareholder, the State Government of Sergipe, nor systemic support. Nevertheless, Moody's notes that in the event of stress, Banese could reinforce its capital through reduced dividend payout or retained earnings reserves, if needed. The principal methodology used in this rating was Global Banks published in May 2013. Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in October 2012 entitled "Mapping Moody's National Scale Credit Ratings to Global Scale Credit Ratings". Banco do Estado de Sergipe S.A. is headquartered in Aracaju, Brazil, with total assets of BRL3.54 billion (USD1.50 billion) and shareholders' equity of BRL279.5 million (USD118.4 million) as of December 31 2013. BES INVESTIMENTO: Moody's Assigns Ba3 Sr. Secured Debt Rating ------------------------------------------------------------- Moody's America Latina Ltda. has assigned a Ba3 senior unsecured debt rating and A2.br National Scale debt rating to BES Investimento do Brasil S.A.'s (BESI) proposed senior unsecured debt under the program of "Letras Financeiras" in the amount of BRL200.0 million, due in 2016. The notes are a public offering with limited efforts, under CVM instruction 476. The outlook on the ratings is stable. Assignments: Issuer: BES Investimento do Brasil S.A. (BESI) Senior Unsecured Regular Debt (letras financeiras) The following ratings were assigned to BES Investimento do Brasil S.A.'s BRL200.0 million senior debt: Long-term local-currency senior unsecured debt rating of Ba3, stable Long-term Brazilian national scale senior unsecured debt rating (letras financeiras) of A2.br, stable Ratings Rationale The rating agency noted that Ba3 global local currency senior debt rating derives from BESI's Ba3 global local currency deposit rating, which incorporates the bank's standalone bank financial strength of D- (equivalent to ba3 baseline credit assessment). This is the first instance of local currency senior unsecured debt (letras financeiras) to which Moody's has assigned a rating. Moody's Ba3 rating for BESI incorporates its adequate risk management track record and capital position, as well as the inherently volatile nature of its investment banking revenue generation. The bank has adequately managed a growing loan book, which now accounts for one third of the bank's total assets and is predominantly related to its investment banking business. BESI's asset quality has been stable, a trend we expect to continue, although loan concentration is high. BESI maintains an appropriate capital level to sustain its risk taking, with loan leverage ratio of around 3.0x, despite the 40% increase in the loan portfolio over last year. BESI's also maintains defensive liquidity management, which has led to the bank holding an amount of liquid assets, equivalent to 24% of total assets as of December 2013, that exceeds its internal targets. At the same time, BESI's rating incorporates the inherent volatility of its investment banking operations, particularly in the currently challenging environment for domestic capital markets. The last rating action on BESI was on 28 April 2014, when Moody's affirmed the bank financial strength (BFSR) of D- and the long- term global local and foreign currency deposit ratings of Ba3, and the long-term Brazilian national scale deposit rating of A2.br. Also, the outlook on all ratings was changed to stable from negative. The principal methodology used in this rating was Global Banks published in May 2013. BES Investimento do Brasil S.A. is headquartered in Sao Paulo, Brazil and reported total assets of BRL8.1 billion (USD3.5 billion) and equity of BRL665.7 million (USD284.2 million) as of December 31, 2013. BRAZIL: Broad Inflation Measure Eased More Than Expected in April ----------------------------------------------------------------- Matthew Malinowski at Bloomberg News reports that Brazil's broadest measure of inflation fell more than analysts forecast in April, as policy makers work to tame above-target prices in the world's second-largest emerging market. Wholesale, consumer and construction prices, as measured by the IGP-M index, rose 0.78 percent [in April], less than half the 1.67 percent jump in March, the Getulio Vargas Foundation said on its website, according to Bloomberg News. The gain was lower than median estimate of a 0.81 percent increase from 24 economists surveyed by Bloomberg. The index, which is weighted 60 percent in wholesale prices, rose 7.98 percent in the past 12 months, Bloomberg News relates. President Dilma Rousseff's administration is struggling to contain inflation levels curbing purchasing power and consumer confidence, Bloomberg News discloses. Dry weather has sparked a jump in food and beverage costs that has undermined nine straight key rate increases aimed at taming prices, Bloomberg News relates. Economists expect the official inflation figure to accelerate to the upper limit of the target range this year for the first time since 2011, Bloomberg News says. Wholesale prices increased 0.79 percent in April after rising 2.2 percent last month, according to April 29's report, Bloomberg News relays. Consumer prices climbed 0.82 percent after increasing by the same amount in March, Bloomberg News relates. Food jumped 1.62 percent, above the 1.55 percent increase recorded the prior month, Bloomberg News notes. Benchmark Rate Bloomberg News notes that Brazil's central bank on April 2 lifted the benchmark Selic by a quarter-point to 11 percent, the highest in more than two years. Since last April policy makers have lifted borrowing costs the most in the world after Turkey to combat consumer price increases, the report notes. Still, Bloomberg News discloses that economists in a weekly central bank survey have lifted their 2014 inflation expectations to 6.5 percent from 5.71 percent a year ago, according to the study published on April 28. Brazil's central bank targets inflation at 4.5 percent, plus or minus two percentage points, Bloomberg News relays. Recent statistics show a food price shock is starting to ease, central bank President Alexandre Tombini told reporters and government officials on April 16, Bloomberg News relates. Finance Minister Guido Mantega reiterated that message 12 days later, and added inflation is being kept in the target range, Bloomberg News notes. Bloomberg News says that consumer confidence as measured in April by the Getulio Vargas Foundation fell to the lowest level since May 2009. Both retail sales and industrial output in February grew at a slower pace compared with January's, the report relays. Latin America's largest economy will expand 2 percent this year, according to central bank estimates, Bloomberg News relates. That compares with 2.3 percent growth in 2013, Bloomberg News adds. BRAZIL: Fitch Says Operating Efficiency Key for Water Operators --------------------------------------------------------------- Fitch Ratings has published a new report on the Brazilian water/wastewater sector that highlights the industry's need for adequate operating efficiency and generation of cash flow from operations (CFFO). Both will be necessary to support the strong investments forecast for the sector during the next five years. Potential regulatory development is also expected to put pressure on the industry's operators, particularly regarding higher demand for efficiency improvements. Private players are likely to benefit given their overall higher capacity and greater flexibility to enhance efficiency than that of state owned companies. 'The significant capex estimated for the next five years should continue to pressure the industry FCF. This highlights the importance of adequate CFFO to mitigate pressure on companies' financial profiles and credit metrics', said Gustavo Mueller, Associate Director at Fitch. The report also highlights key issues in assessing water/wastewater companies in Brazil including: water losses and delinquency ratios, financial profile, cost structure and regulatory and hydrologic risks. Industry fundamentals in the country remain strong and supported by resilient demand, which favors the companies' cash flow predictability, particularly for those with adequate levels of operating efficiency. The regulatory environment is still new, but tariff increases have been implemented satisfactorily thus far. For 2014, leverage is expected to remain moderate and liquidity is to be observed, particularly for the lower rated players given their reduced capacity to generate CFFO. Private players' operating growth should continue to be driven by developments of public private partnership and acquisition moves, either by incorporation of new concessions or through acquisition of smaller operators. Fitch expects state government companies to increase activity supported by organic growth of base operations and tariff readjustments. MGI-MINAS: Moody's Confirms Ba1 Rating on 3rd Debenture Issuance ---------------------------------------------------------------- Moody's America Latina has confirmed the Ba1 (sf) (Global Scale) and Aa2.br (sf) (National Scale) ratings on the third issuance of senior debentures backed by re-performing ICMS taxes issued by MGI - Minas Gerais Participacoes (not rated). This action concludes the review Moody's initiated on January 21, 2014, when it placed the ratings under review for downgrade. The senior debentures are backed by the right to receive 60% of collections from monthly payments of renegotiated ICMS taxes (Imposto sobre Operacoes Relativas a Circulacao de Mercadorias e Prestacao Servi‡os de Transporte Interestadual e Intermunicipal e de Comunicacao) originally owed to the State of Minas Gerais. MGI is a public limited company almost wholly owned (99.8%) by the State of Minas Gerais (Baa3, Global scale). Ratings Rationale The ratings confirmation is based on (1) the sufficiency of cash flows to repay the debt, (2) the resolution of reporting inconsistencies, and (3) the State of Minas Gerais' ownership of MGI and Moody's opinion that the state would be proactive in taking the necessary measures to shore up this transaction' performance in the event of stress. Moody's analyzed the transaction to determine whether cash flows will be sufficient to repay the debt after the extraordinary amortization of BRL31.6 million that took place on 26 February 2014, when investors accepted a principal prepayment of 10% of the original issuance amount. The debt service coverage ratio (DSCR) trigger, set at a conservative level of 1.80x, had been breached in June, when it declined to 1.68x; in September, when it declined to 1.67x; and again in November 2013, when it declined to 1.75x. The repeated trigger breach led to an evaluation event and a bondholder meeting at which investors agreed to waive the June and September DSCR breaches, but not the November 2013 DSCR breach. The extraordinary amortization eased the pressure on the DSCR by reducing the monthly principal and interest payments due. As a result of this action, as of February 2014, the DSCR was 2.01x, adequately above the 1.8x trigger. According to Moody's adjusted cash flow projections (based on actual collections since the transaction's inception), the cash flows from the expected collections from the monthly payments of the ICMS taxes will be sufficient to repay the rated debt, although eventually at a level below the DSCR trigger. Moody's expects that upon the transaction's maturity, the DSCR will be around 1.5x, still sufficient for full repayment of principal and interest on the debenture. In addition, MGI has resolved its reporting inconsistencies, whereby receivables due after the transaction's maturity had increased (which would be inconsistent with the static pool nature of this transaction), while the company's reports indicated a decline in the amount of delinquent receivables, without a corresponding increase in collections. As of February 2014, the State of Minas Gerais had refinanced receivables constituting 9.4% of the original pool balance and related to securitized receivables that had become delinquent after the transaction closed. MGI and the State of Minas Gerais argue that, because (1) these loans have started to perform again as expected and are generating cash and (2) the balance of receivables due before the debentures' legal maturity has not changed, the refinancing has not negatively affected the noteholders. As a result, the composition of receivables for the remaining life of the debenture has changed and a higher amount of receivables is now due after the transaction's maturity date; delinquent receivables have declined as well. However, the State of Minas Gerais could continue to refinance additional receivables so that the amount of receivables due before the legal final maturity date could decrease and as such, the cash flow might not be sufficient to repay the debentures. After the refinancings to date, the expected cash flows to be received before the legal final maturity date have not decreased compared to cash flows expected at the transaction's closing, because of higher interest and penalties charged, as well as additional tax receivables that have been added to the refinanced receivables. The asset coverage ratio, which includes the refinanced receivables due before legal final maturity, was 358% as of February 2014, well above the 200% trigger. Moody's will continue to monitor the refinancing taking place in the pool and the subsequent performance of these receivables. Finally, although MGI is the sole obligor under the debentures and investors have no recourse against the State of Minas Gerais in the transaction, there is a close relationship between MGI and the State of Minas Gerais, given the extent (1) of the state's ownership of MGI and (2) of the portion it holds of the transaction's subordinated debt. Moody's expects that the state will continue to pro-actively take the necessary measures to support the transaction's performance, through MGI's governing bodies or as otherwise needed. The principal methodology used in this rating was "Moody's Approach to Rating Future Receivables Transactions" published in May 2013. Although the underlying assets were existing at closing, the approach used to monitor the transaction cash flows, follows the future receivables methodology. Factors that would lead to an upgrade or downgrade of the rating: Factors that would lead to a downgrade would be a further deterioration of the collateral performance and a decline in the quality and consistency of the performance information provided. Factors that would lead to an upgrade would be a significant improvement in collateral performance. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for M‚xico. For further information on Moody's approach to national scale ratings, please refer to Moody's Rating Methodology published in October 2012 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings". MILLS ESTRUTURAS: Moody's Rates BRL200MM Sr. Unsec. Debentures Ba2 ------------------------------------------------------------------ Moody's America Latina assigned a Ba2 global scale local currency rating and a Aa3.br national scale rating to the proposed BRL 200 million 5-year senior unsecured debentures to be issued by Mills Estruturas e Servi‡os de Engenharia S.A. ("Mills"). The outlook for the ratings is stable. The rating of the proposed notes assumes that the final transaction documents will not be materially different from draft legal documentation reviewed by Moody's to date and assume that these agreements are legally valid, binding and enforceable. Ratings assigned: Issuer: Mills Estruturas e Servi‡os de Engenharia S.A. BRL 200 million 5-year senior unsecured debentures: Ba2 (global scale)/Aa3.br (national scale) The company's existing ratings are unchanged. Moody's now maintains the following ratings for Mills Estruturas e Servi‡os de Engenharia S.A.: Corporate Family Rating: Ba2 (global scale)/Aa3.br (national scale) BRL 270 million senior unsecured debentures due 2016: Ba2 (global scale)/Aa3.br (national scale) BRL 270 million senior unsecured debentures due 2017 and 2020: Ba2 (global scale)/Aa3.br (national scale) The outlook for all ratings is stable. Ratings Rationale Mills' Ba2/Aa3.br corporate family rating incorporates its leading position in the Brazilian concrete formwork and tubular structures sector backed by its longstanding relationship with the major local construction companies engaged in complex infrastructure, commercial, industrial and residential projects, supported by the offering of innovative solutions and updated technology. With the divestiture of its industrial services division in 2013, Mills has increased its focus in the core, higher-margin, businesses that includes construction (infrastructure and homebuilding) and equipment rental. The company is well positioned to benefit from the growth in heavy construction, infrastructure and housing sector in Brazil, which is expected to last several years. The rating is also supported by Mills' strong operating margins (above 30% in the past couple of years) based on a track record of high capacity utilization, and by its prudent financial management that includes a target leverage of Net Debt to Ebitda of 1x and a moderate dividend payout policy. Mills is run by professional executives with long experience in the industry, which potentially reduces the company's execution risk, and has a good level of disclosure. Despite the strong revenue growth observed in the past couple of years, fueled mainly by the heavy construction and rental segments, Mills' small size relative to global peers, its high dependence on the cyclical construction industry, and aggressive growth plans that include capital investments of BRL 231 million in 2014 are constraining factors to the rating. Notwithstanding, the short cycle of its investments provides flexibility to efficiently react to potential slowdowns in the construction industry. Mills has strongly expanded in the past four years (accumulated capex of BRL 1.5 billion from 2010 to 2013), which resulted in negative free cash flow since 2010 and pressured liquidity in some periods to levels below the minimum cash balance target (around BRL 40 million). Nevertheless, the company has good access to capital markets and issued two debentures (BRL 270 million each) in 2011 and 2012 to fund its expansion, which was also supported by internal cash flow generation. The proposed BRL 200 million debentures will be used to pay down the existing promissory notes issued in April 2014 and to finance future capex. The promissory notes were issued to meet debt amortization needs in the amount of BRL 90 million in April. The stable outlook considers that Mills will continue to prudently manage dividends and leverage based on its long term target of Net Debt to EBITDA of 1.0x while maintaining solid liquidity position. The outlook also considers the benefits of the booming heavy construction sector and infrastructure investments in Brazil that will allow Mills to grow its operations organically rather than through acquisitions. Mills is expected to maintain its leadership position, ensure healthy operating margins and debt protection metrics even during the down cycles of the construction industry by efficiently managing its capex program in anticipation of declining demand for its services. Despite Mills' small size relative to global peers, positive pressure on ratings could arise if the company is able to sustain its margins at the same time it expands its market position on key segments. Additionally, the ratings might be positive affected if the company generates positive free cash flow on a sustainable basis. The ratings could be negatively impacted in case the company remains significantly free cash flow negative, resulting in a substantial increase in leverage and/or liquidity deterioration. Further downgrade pressure may arise in case Mills cannot sustain current margin levels and lead market position across key lines of business. Also, a significant increase in the level of secured debt could cause a downgrade of the rated unsecured debentures. The principal methodology used in this rating was Moody's Business and Consumer Service Industry rating methodology published in October 2010. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. For further information on Moody's approach to national scale ratings, please refer to Moody's Rating Methodology published in October 2012 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings". Mills Estruturas e Servi‡os de Engenharia S.A., headquartered in Rio de Janeiro, is a leading provider of concrete formwork and tubular structures services to construction companies, industrial services and rental of motorized access equipment in Brazil, having reported BRL 832 million (USD 385 million converted by the average exchange rate for the period) in revenues in the last twelve months ended December 2013. OLEO E GAS: S&P Withdraws 'D' CCR at Issuer's Request ----------------------------------------------------- Standard & Poor's Ratings Services withdrew its 'D' corporate credit rating on Brazilian exploration and production company Oleo e Gas Participacoes S.A. (OGPar) at its request. Prior to the withdrawal, the rating reflected the company's failure to pay interest on its notes and the filing for judicial reorganization in late 2013. Interest currently remains unpaid, and the company is continuing to pursue the court approval for its reorganization plan. ========================== C A Y M A N I S L A N D S ========================== ALL SEASONS: Creditors' Proofs of Debt Due May 22 ------------------------------------------------- The creditors of All Seasons Investment Holdings Limited are required to file their proofs of debt by May 22, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 9, 2014. 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 CHALLENGER INVESTMENT: Creditors' Proofs of Debt Due May 22 ----------------------------------------------------------- The creditors of Challenger Investment Holdings Limited are required to file their proofs of debt by May 22, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 9, 2014. 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 J-MEZZ TMK: Creditors' Proofs of Debt Due May 13 ------------------------------------------------ The creditors of J-MEZZ TMK Investments, Ltd. are required to file their proofs of debt by May 13, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 8, 2014. The company's liquidator is: Ogier c/o Jo-Anne Maher Telephone: (345) 815-1762 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands J-MEZZ TMK JAPAN: Creditors' Proofs of Debt Due May 13 ------------------------------------------------------ The creditors of J-MEZZ TMK Japan Investments, Ltd are required to file their proofs of debt by May 13, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 8, 2014. The company's liquidator is: Ogier c/o Joanne Huckle Telephone: (345) 949 9876 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands JADES ASIA: Creditors' Proofs of Debt Due May 22 ------------------------------------------------ The creditors of Jades Asia Dynamic Fund are required to file their proofs of debt by May 22, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 4, 2014. The company's liquidator is: Managementplus (Cayman) Limited c/o Frank Balderamos Telephone: (345) 925-5976 Facsimile: (345) 743-6770 Buckingham Square, 2nd Floor 720 West Bay Rd P.O. Box 11735 Grand Cayman KY1-1009 Cayman Islands K3 CAPITAL: Creditors' Proofs of Debt Due May 14 ------------------------------------------------ The creditors of K3 Capital Funds SPC are required to file their proofs of debt by May 14, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 7, 2014. The company's liquidator is: Ogier c/o Joanne Huckle Telephone: (345) 949 9876 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands NAPIER PARK: Creditors' Proofs of Debt Due May 13 ------------------------------------------------- The creditors of Napier Park Global Macro Fund Ltd are required to file their proofs of debt by May 13, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 8, 2014. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands NAPIER PARK MASTER: Creditors' Proofs of Debt Due May 13 -------------------------------------------------------- The creditors of Napier Park Global Macro Master Fund Ltd are required to file their proofs of debt by May 13, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 8, 2014. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands OXFORD INSURANCE: Commences Liquidation Proceedings --------------------------------------------------- At an extraordinary meeting held on March 27, 2014, the shareholders of Oxford Insurance SPC, 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: Mr. Stuart Jessop Windward 3, 5th Floor Regatta Office Park West Bay Road, Grand Cayman KY1-1105 Cayman Islands Telephone: 949-1599 e-mail: s.jessop@aih.com.ky TSF0301: Creditors' Proofs of Debt Due May 22 --------------------------------------------- The creditors of TSF0301 are required to file their proofs of debt by May 22, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 8, 2014. 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 ========= C H I L E ========= MASISA S.A.: Fitch Assigns 'BB' Rating to USD300MM Sr. Notes ------------------------------------------------------------ Fitch Ratings publishes a rating of 'BB' for the USD300 million senior unsecured 9.5% notes due 2019 issued by Masisa S.A. (Masisa). The notes are unconditionally guaranteed by Forestal Tornagaleones and Masisa Forestal. Proceeds from the notes will primarily be used to refinance Masisa's medium- and short-term debt. Key Rating Drivers High Exposure To Argentina And Venezuela Masisa's ratings are constrained by the company's large exposure to Venezuela and Argentina. Combined these markets represented 55% of Masisa's consolidated EBITDA as of Dec. 31, 2013. Challenges in these markets include non-stable currencies, political interference as well as foreign currency transfer restrictions. Masisa's net leverage of 3.0x as of Dec. 31, 2013 is below the 3.4x the company averaged during the past five years. Excluding the EBITDA from these markets, the company's net leverage ratio is around 6.8x. Sound Business Position The ratings of Masisa incorporate its sound business position within Latin America as a leading producer of wood boards with 3.4 million cubic meters of installed capacity. The company's operations are concentrated in Chile, Brazil, Argentina, Venezuela, and Mexico. Masisa has Placentro retail stores and commercial offices in Peru, Colombia and Ecuador, and exports to countries outside the region such as the U.S. An additional credit consideration is the company's continued uses of equity to partially fund growth. Increases of equity occurred in 2003, 2005, 2009 and 2013. Forestry Assets Are Important Credit Consideration The ratings further incorporate Masisa's ownership of 226,433 hectares of plantations in South America, which along with its forestry land, had an accounting value of USD912 million as of Dec. 31, 2013. During March 2014, the company reached an agreement to sell 32,500 hectares of plantations in Chile to Hancock Natural Resource Group ('Hancock') for USD204 million. To implement the transaction, Masisa will provide these forestry assets to a New Co., based in Chile and Hancock will subscribe to 80% of the New Co's. shares, with Masisa holding the remaining 20%. Masisa and Hancock will subsequently enter a long term fiber supply agreement, which gives Masisa the option to purchase wood fiber. During 2013 Masisa supplied 3% of its Chilean industrial fiber needs from these forests. This sale (on a pro forma basis) reduces the company's 2013 net leverage ratios to 2.2x and 4.9x (excluding Venezuela and Argentina). Ebitda Growth During 2013, Despite Devaluation In Venezuela Masisa generated an EBITDA of USD241 million during 2013, an increase from USD224 million during 2012 mainly driven by improved performance in Brazil, Chile and Mexico. The company's performance in Argentina has remained weak to relative potential, while its EBITDA in Venezuela increased to USD76 million from USD70 million during 2012, despite the company`s decision to present its 2013 financial statements with the 160% devaluation of the bolivar against the dollar during January 2014. Masisa's Brazilian operations benefited from lower energy costs, which offset a 2.7% volume decrease due to a fire at the Montenegro MDP plant during September 2012. Its Chilean operations benefited from a turnaround in the U.S. housing market, which increased demand for MDF moldings (+76%). During 2013 Masisa repatriated USD38 million of dividends from its Argentinean subsidiary. Modest Increase In Net Debt Masisa had USD866 million of consolidated debt and USD137 million of cash and marketable securities as of Dec. 31, 2013, resulting in USD729 million of net debt. This figure compares with USD724 million as of Dec. 31, 2012. As of Dec. 31, 2013, USD643 million, or 74% of Masisa's consolidated debt is long term. This debt consists of USD373 million of bonds, USD262 million of bank debt and USD1.5 million of financing leases. About USD50 million of the company's cash is trapped in Venezuela, which increases its affective net leverage to USD780 million prior to the receipt of USD204 million from the forestry asset sale to Hancock. Manageable Liquidity Profile During December 2013 Masisa refinanced part of its debt with a USD150 million 18-months bridge loan. This bridge is expected to be taken out with some of the proceeds of the USD300 million international 9.5% senior unsecured notes. The sale of non- strategic forestry assets should further bolster the company's liquidity. Masisa's Board of Directors approved a USD100 million capital increase, of which Masisa placed USD80 million during the pre-emptive right period. As of Dec. 31, 2013, Masisa had USD222 million of short-term debt. Significant Capex Program Masisa's capex program has been oriented toward strengthening its Mexican operations due to the strong growth potential of the market, as per-capita consumption of boards is low and the housing deficit is high. Between 2013 and 2015, Masisa plans to invest USD600 million. Key investments include the acquisition of Rexcel and Arclin's assets (concluded), which increased coating capacity in Chile and Brazil, and constructing a new MDF plant in Mexico with 200,000 cubic meter annual capacity. This mill includes a 100,000 cubic meter melamine facility. Financing for these investments should be through the USD100 million capital increase, USD300 million of cash flow from operations (Ex-Venezuela), and USD204 million of proceeds from the divestiture of non-strategic forestry assets. Rating Sensitivities Negative rating actions could occur if there is a sustained net debt increase, operating cash flow weakens, or the political environment in Argentina or Venezuela deteriorates further. Absent significant debt reduction, positive rating actions are not likely in the short term due to Masisa's reliance upon Venezuela and Argentina for around 50% of its EBITDA. Fitch currently rates Masisa as follows: --Foreign and local currency Issuer Default Ratings 'BB'; --National scale rating of Bond Line No. 355, No. 356, No. 439, No. 440,No. 560, No. 724 and No. 725 'A-(cl)'; --National short-term rating 'N1(cl)''; --Long-term national scale rating 'A- (cl)'. --Equity rating 'Primera Clase Nivel 3(cl)' The Rating Outlook is Stable. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: UN Revises Growth Forecast to 5% ---------------------------------------------------- Dominican Today reports that the Latin American and Caribbean countries will grow 2.7% on average in 2014, stymied by limited dynamism of the region's major economies, according to new projections from the UN Economic Commission for Latin America and the Caribbean (ECLAC). For the Dominican Republic the regional organization forecasts a growth equal to or higher than 5 % in 2014, according to Dominican Today. The report notes that ECLAC unveiled its updated Economic Results for Latin America and the Caribbean 2013, which reviews data on the main economic variables from 2013 and presents new estimates on the region's growth. The report discloses that ECLAC said regional growth in 2014 would be slightly higher than in 2013 (2.5%) and lower than the forecast in December (3.2%), "due to the external context still marked by uncertainty and lower-than-expected growth for the region's biggest economies, Brazil and Mexico, that will grow 2.3 percent and 3 percent, respectively." ==================== E L S A L V A D O R ==================== BANCO AGRICOLA: Fitch Affirms Int'l Classification of IDR at BB + ----------------------------------------------------------------- Fitch Ratings has affirmed the international classification of long-term (IDR), for its acronym in English, at 'BB +' and the classification of viability (VR), for its acronym in English at 'bb +' to Banco Agricola, SA (Agricultural). Seen in the long-term ratings remains Negative Key Factors Standings International Agricultural rankings are based on; robusta bank franchise and dominant market position, solid and stable profitability, strong absorption capacity loss, good asset quality and broad base of depositors. Agricultural rankings also consider the ability of the bank demonstrated resistance in adverse stages of the economic cycle, loan concentration and the challenging economic conditions in El Salvador that could have some impact on growth prospects and quality of bank assets. International Agricultural rankings are restricted by the country ceiling; currently remain two levels on the sovereign rating of El Salvador. In Fitch's view, there is a close relationship between the bank and sovereign credit risk, and thus ratings, making it exceptional for banks to be rated above the domestic sovereign. Importantly, in the absence of a strong individual performance, the International Classification of Agricultural remain at the same level as the support they receive, upon request, its parent, Bancolombia with Fitch international rating of 'BBB'. This is reflected in the Agricultural support classification of '3 ', indicating a moderate probability of support. Agriculture continues to exhibit robust capitalization reflected in Capital Base, Fitch, around 20% of risk-weighted assets for the past four years; comparing well above the average for the banking system and major international peers. In Fitch's view, the loss absorption capacity remains strong and above that of their peers in the medium term. The solid financial performance in different phases of agricultural economic cycle has been driven by costs stable and relatively low supplies, good operating efficiency and lower financing costs. Good quality agricultural assets compares favorably with that of some of its major peers and the local banking system. The bank reached the level of nonperforming loans lowest since 2008, while maintaining a conservative hedging policy reserves. Good asset quality due to its conservative underwriting standards, payroll deductions for a portion of consumer loans, permanent punishment policy and good collector's procedures. The concentration of the principal debtor is relatively high. The bank's funding and liquidity remain stable, with low concentrations of depositors. The bank's ability to access and maintain a large and stable deposit base low cost is one of its main strengths. The bank maintains a good liquidity position; Cash accounted for 22.1% of total deposits. Agriculture is considered a Fundamental subsidiary Bancolombia. In Fitch's opinion, Agricultural and provides a significant participation of recurrent income from its parent and subsidiary is important for both growth and diversification in Central America for Bancolombia. The recent expansion of Bancolombia in other Central American markets increases the relative importance of its international network in the medium and long term. Sensitivity Of Standings The negative outlook of the International Classification of Agricultural reflects an eventual decrease in the classification of the Salvadoran sovereign 'BB-' / Negative result in a decrease of the Country Ceiling 'BB +', which in turn, lead to a decline in the international classification bank. A significant decrease in profitability and capitalization of Agriculture could be reflected in a decline in the bank's viability rating (VR). An eventual assertion of sovereign rating to 'BB-' and revised the Outlook to Stable from Negative, lead, most likely, to asserting the International Documentary classification and Agricultural Outlook is revised to Stable from Negative. National Agricultural ratings would not be affected by the decline of the sovereign ratings and country ceiling since the relative strength of the bank in the local market remain unchanged. National classifications of Agricultural Bank Investments (IFBA) reflect national rankings Agricultural and your changes, as the bank is about 99% of its assets and income. Fitch has affirmed the following ratings for Banco Agricola SA: Fitch Scale: - International Classification of Long-term 'BB +'; Outlook Negative; - International Classification of Viability at 'bb +'; - International Classification of Short-term 'B'; - International Classification of Support '3 '; - National Long-Term Rating at 'AAA (slv)'; Outlook Stable; - National Classification of Short-term 'F1 + (slv)'; - National Qualifiers titles No Guarantee Long-Term 'AAA (slv)'; - National Qualifiers securities Guarantee Long-Term 'AAA (slv ) '. Regulatory Scale: - National Long-Term Rating at 'AASEs (slv)'; Outlook Stable; - National Qualifiers titles No Guarantee Long-Term 'AAA (slv)'; - National Qualifiers securities Guarantee Long-Term 'AAA (slv)'. Fitch has affirmed the following ratings for Banco Agricola SA Investments: Fitch Scale: - National Long-Term Rating at 'AAA (slv)'; Outlook Stable; - National Short-Term Rating at 'F1 + (slv)'. Regulatory Scale: - National Long-Term Rating at 'AASEs (slv)'; Outlook Stable; BANCO DAVIVIENDA: Fitch Affirms LT International Rating at 'BB +' ----------------------------------------------------------------- Fitch Ratings has affirmed the long-term international rating (IDR, for its acronym in English), the Banco Davivienda Salvadoreno, S.A (Davivienda Sal) at 'BB +'. Seen in the long- term ratings remains Negative. Key Factors Standings - IDR And National Sal Davivienda's ratings reflect the support, in Fitch's opinion, would receive its ultimate shareholder, the Colombian Banco Davivienda, SA; Davivienda; 'BBB-' / Outlook Stable / 'bbb-'. Fitch considers Davivienda Sal e IFDavivienda as strategically important to its main shareholder. This review is based on the fact that Davivienda has driven the expansion and diversification in Central America to implement a balanced business plan will contribute positively to the consolidated operation. Fitch estimates that the acquired operations in Central and contribute a significant proportion of recurring revenues of the consolidated entity in the medium term. He also believes that the support would be appropriate and sufficient, given the reputational risk associated with the franchise brand and shared. Ratings Key Factors - VR The Viability Rating (VR, for its acronym in English) of Davivienda Sal are based on its moderate franchise, strong capital position and adequate asset quality. The ratings also reflect indicators of low efficiency, low profitability and moderate income diversification. Credit quality indices have improved significantly since 2009, compared with banks properly classified similarly. Past due loans> 90 days accounted for 3.0% of gross loans at end-2013; 2009-2012: 5.0%. The loan loss reserves of Davivienda Sal have not yet achieved full coverage, although Fitch notes that collateral coverage, mainly mortgage, is comfortably above the level of overdue loans. The profitability of Davivienda Sal is modest, but is recovering from a very low base. Continuous improvements in efficiency along with lower provision charges and increased recoveries for loans written off have benefited the bank's financial performance. Fitch expects profitability of Davivienda Sal, though is improving, remain under their potential in 2014 due to weak economic growth and strong competition in the square. In Fitch's view, the bank has a strong ability to absorb losses, showing a rate of Capital Base Fitch, Fitch Core Capital, FCC, from 17% at end-2013. This, coupled with moderate reservations, will help absorb unexpected losses in an adverse economic environment. The regulatory capital ratios comfortably should fluctuate between 15% -19%, supported by an adequate internal generation of capital and good asset quality. Sensitivity Standings - IDR and VR The negative outlook of the international classification of Davivienda Sal reflects that an eventual decrease in the 'BB-' / Outlook Negative Salvadoran ruler, result in a decrease of the Country Ceiling, which in turn lead to a decrease in the classification international bank. An eventual assertion of sovereign rating to 'BB-' and revised the Outlook to Stable from Negative, most likely lead to the affirmation of the international classification of Davivienda Sal and his perspective would be reviewed as well. The VR is limited by the rating of the Sovereign of El Salvador, as the bank has no record of overcoming system performance. Sensitivity Of Standings - National The ratings and outlook are sensitive to changes in the ability and / or propensity of Davivienda to support these operations. Fitch affirmed the following ratings: Banco Davivienda SA Salvadore¤o: Scale Fitch - International Classification of Long-term 'BB +'; Outlook Negative; - International Classification of Viability at 'bb +'; - International Classification of Short-term 'B'; - International Classification of Support '3 '; - Classification of issuer long-term 'AA + (slv)'; Outlook Stable; - Classification emitter short-term 'F1 + (slv)'; - National Qualifiers titles long term unsecured at 'AA + (slv)'; - National Qualifiers long-term securities guaranteed at 'AAA ( slv) '; - National Qualifiers titles short term unsecured rating at 'F1 + (slv)'; - National Qualifiers short-term securities guaranteed at 'F1 + (slv)'. Scale regulatory El Salvador - Classification issuer 'EAA + (slv)'; Outlook Stable; - National Qualifiers titles long term unsecured at 'AA + (slv)'; - National Qualifiers long-term securities guaranteed at 'AAA (slv)'; - National Qualifiers titles short term unsecured 'N-1 (slv)'; - National Qualifiers short-term securities with collateral 'N-1 (slv)'. Investments Davivienda SA: Scale Fitch Rating - Long-term issuer 'AA + (slv)'; Outlook Stable; - Issuer Rating Short-term 'F1 + (slv)'. Scale regulatory El Salvador - Classification issuer 'EAA + (slv)'; Outlook Stable. Fitch Ratings FONAVIPO: Fitch Affirms Long-term Rating at 'B + (slv)' ------------------------------------------------------- Fitch Ratings has affirmed the ratings of National Housing Fund (FONAVIPO). Seen in the long term rating remains Stable. Key Factors Standings - ISSUER The risk ratings assigned to FONAVIPO are based on the financial profile of the company, including asset quality and adequate capital position. They also reflect lower expected liquidity pressures in the short term for the payment of its financial obligations after the company restructured its liabilities by issuing a long-term bond. However, both are limited by the challenge of housing and land market sufficient to address the issue of payment when due in a timely manner, as well as the challenge of reviving its financial intermediation activity, which decreased in recent years . By issuing debt, the company replaced short-term financing with financial institutions and substantially improved the fit of maturity of their operations. FONAVIPO expects to complete the payment of the bonds by cash flows from the sale of houses and land. In recent years, the company expanded its activities with the housing program Home for All, through the development and marketing of residential projects. A March 2014 has four real estate projects, which accounted for 2,577 housing units, including houses and apartments; only 29.3% of the houses have been sold demonstrating a level lower than projected by the entity. The goal of management is FONAVIPO complete the sale of 70% of the homes at the end of 2015, which is a major challenge for an entity that has no experience in the development and marketing of properties. The effective marketing of properties is subject to factors beyond the control of FONAVIPO, as the economic environment, which may limit homeownership factors of potential customers. In recent years the results have deteriorated significantly due to the increased volume of funding for the development of residential projects, as well as the administrative burden associated with these projects. The slowdown in lending activity and housing marketing and the accounting adjustment in its results in 2013, enjoyed the entity take on important, to reverse the revenue forgone losses during the financial year. FONAVIPO was established as an apex institution to develop financial intermediation. Until some years ago, its sole activity was to allocate resources to other financial institutions, mostly unregulated, to finance the acquisition and improvement of housing for low-income people. One of its main strengths is the solid quality of its portfolio, which has no arrears because the intermediary institutions are their primary source of payments and not end users. It also has mechanisms to mitigate risks such as Escrow and the ability to move their portfolio to other entities in order to not default on payments. The entity has a high capital base, capital base according to Fitch Weighted Assets: 27.1%; however, it has been compromised by rapid active hitherto increased unproductive. This heritage was established with funds from public institutions and is strengthened by the accumulation of profits. Is expected to remain stable in the future. Key Factors In Standings - Issue The risk rating of the investment certificates issued by FONAVIPO reflects the creditworthiness of the State of El Salvador, as this is the guarantor of that obligation. This guarantee allows the risk rating of the issue exceeds the issuer. Sensitivity Of Standings - Issuer Classifications on stage FONAVIPO improve the marketing of properties evolve favorably in the coming months, suggesting that the company could meet the payment of the bonds in a timely manner. Conversely, the ratings could be adjusted downward in the scenario that the entity continues to report delays in marketing the property, which derive struggling to pay the bond in accordance with the terms originally subscribed. Sensitivity Of Standings - Issue In Fitch's view, improved risk classification of the issue are unlikely due to their correlation with the credit quality of the sovereign. For its part, the classification of the issue could be affected to a weakening in the credit quality of the Government of El Salvador, relative to other domestic issuers. Key Assumptions Fitch assumes that FONAVIPO continue to develop, as appropriate, the financial intermediation and credit quality remains strong. In this sense, loan impairments that could compromise the assets of the entity are expected. In the scenario that fails FONAVIPO sell properties in a timely manner and not have the liquidity to pay the debt issue, the State of El Salvador will honor the payment of these creditors in a timely manner. Fitch has affirmed the following ratings FONAVIPO: Scale regulatory El Salvador - Rating issuer 'EB + (slv)'; - Match of CIFONA2 bonds at 'AA-(slv)', Outlook Stable. Scale Fitch - Long-term Rating 'B + (slv)'; - Match Short-term 'B (slv)'; - Match of CIFONA2 bonds at 'AA-(slv)', Outlook Stable. Fitch Ratings =========== M E X I C O =========== CENTRO VILLAHERMOSA: Moody's Assigns Ba3 Global Scale Rating ------------------------------------------------------------ Moody's de Mexico assigned issuer ratings of A3.mx (Mexico National Scale) and Ba3 (Global Scale, local currency), with stable outlook, to the municipality of Centro (Villahermosa). Ratings Rationale The Ba3/A3.mx ratings assigned to the municipality of Centro reflect negative operating balances and cash financing deficits during the 2009-2013 period. While the municipality's debt stock increased in recent years, its debt-to-revenue ratio was moderate and its liquidity position positive at year-end 2013. Centro registered negative gross operating balances reflecting pressures in its current expenditures mainly related to the water company. During the 2009 -- 2013 period, gross operating balances were equivalent to -9.8% of operating revenues. Nevertheless, the municipality successfully implemented expenditure cuts in 2013 evidencing stronger governance and budget management practices. As a result, Centro's gross operating balance to operating revenue ratio improved to 0.1% compared to -19.2% in 2011. The municipality's cash financing results, averaging -6.3% of total revenues over the last five years, result from Centro's relatively large infrastructure needs, including water and sewer. In 2013, Centro posted a cash financing surplus equivalent to 2.3% of total revenues, reflecting the improvement of gross operating balances and a decrease in capital expenditures. The municipality has covered its financial deficits through debt. At the end of 2013, the municipality posted moderate net direct and indirect debt levels equivalent to 22.6% of operating revenues. Moody's expects the municipality's debt ratio to decrease in 2014 as it does not have plans to contract additional debt. During the 2009-2013 period, the municipality posted positive liquidity. Measured as net working capital (current assets less current liabilities), liquidity was equivalent to 5.2% of total expenditures at the end of 2013. What Could Change The Rating Up/Down Sustainable positive gross operating margins resulting in balanced or positive cash financing results combined with moderate debt levels and positive net working capital, could exert upward pressure to the ratings. A deterioration in gross operating balances leading to higher than expected debt levels and negative liquidity position, could exert downward pressure to the ratings. The principal methodology used in this rating was Regional and Local Governments published in January, 2013. The period of time covered in the financial information used to determine municipality of Centro's rating is between 1 January 2009 and 31 December 2013. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for M‚xico. For further information on Moody's approach to national scale ratings, please refer to Moody's Rating Methodology published in October 2012 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings". ================= V E N E Z U E L A ================= VENEZUELA: Not Paying Airlines US$3.9 Billion Promised, IATA Says ----------------------------------------------------------------- Anatoly Kurmanaev at Bloomberg News reports that Venezuela's government isn't honoring its pledge to provide as much as US$3.9 billion to airlines with bolivars trapped in the country, said the International Air Transport Association, known as IATA. President Nicolas Maduro last month authorized the release of dollars owed to 24 airlines operating in the country, basing the total on the official exchange rate at the time of the ticket sales, Venezuelan Airlines Association President Humberto Figuera told reporters March 28, according to Bloomberg News. "Since then there has been very little progress," Tony Tyler, IATA's General Director, said in a statement published on the organization's website, Bloomberg News notes. "The situation is unacceptable," Mr. Tyler added, Bloomberg News relates. At least 11 airlines have cut capacity on Venezuelan flights in the past year, some by as much as 78 percent, as the currency controls made it increasingly difficult to expatriate local earnings, according IATA, Bloomberg News discloses. Air Canada stopped flying to Caracas in March. The value of revenue trapped in bolivars is being whittled away by the highest inflation in the world and frequent devaluations of Venezuela's currency, Bloomberg News relates. Colombia's Avianca Holdings SA (PFAVH) has about US$300 million in cash in the country, or about 40 percent of its total cash holdings, according to company filings and conference calls, Bloomberg News notes. Panama City-based Copa Holdings SA (CPA) has US$487 million in Venezuela, Bloomberg News adds. *********** 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. 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