/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/141222.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, December 22, 2014, Vol. 15, No. 252 Headlines A N T I G U A & B A R B U D A LIAT: Successful in its Bid to Secure Flights to Dominican Rep A R G E N T I N A ARGENTINA: Open to Lifting Currency Controls, Central Banker Says PAN AMERICAN: Bolivia to Pay US$357 Million for 2009 Asset Seizure B E R M U D A TRADEWYND RE LTD: Fitch Rates Class 3-A Notes at 'BB-sf' B R A Z I L BANESTES S.A.: Fitch Assigns 'BB' Long-Term Issuer Default Rating SETE BRASIL: S&P Lowers Global Scale Rating to 'BB' C A Y M A N I S L A N D S ATRIUM II: Commences Liquidation Proceedings CA CAT: Commences Liquidation Proceedings CANADIAN GLOBAL: Commences Liquidation Proceedings CRAFT 2011-2: Commences Liquidation Proceedings CRAFT 2011-3: Commences Liquidation Proceedings CSAM FUNDING IV: Commences Liquidation Proceedings EG CAPITAL: Commences Liquidation Proceedings EXS FUND: Commences Liquidation Proceedings GOLUB CAPITAL: Commences Liquidation Proceedings KATONAH V: Commences Liquidation Proceedings LIONGATE SELECT: Commences Liquidation Proceedings MS DAIRY HOLDINGS: Commences Liquidation Proceedings MS DAIRY HOLDINGS II: Commences Liquidation Proceedings ODEBRECHT OFFSHORE: S&P Lowers Rating on Notes to 'BB' R/C BRAZIL: Commences Liquidation Proceedings SCHAHIN II FINANCE: S&P Lowers Rating on Notes to 'BB' UNIVERSA ASYMMETRY: Commences Liquidation Proceedings C O S T A R I C A BANCO DE COSTA RICA: Fitch Rates ST Issuer Default Rating at 'B' J A M A I C A DIGICEL GROUP: Merger With Claro was Proper, Appeal Court Says JAMAICA: IMF Board Approves US$67 Million Disbursement M E X I C O EMPRESAS ICA: Moody's Affirms B2 CFR & Changes Outlook to Stable MULTICAT MEXICO 2012-I: S&P Keeps C Notes' B- Rating on Watch Neg. T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Chamber Slams Excuses for US$ Shortage V E N E Z U E L A VENEZUELA: Fitch Cuts Issuer Default Ratings to 'CCC' X X X X X X X X X * BOND PRICING: For the Week From Dec. 15 to Dec. 19, 2014 - - - - - =============================== A N T I G U A & B A R B U D A =============================== LIAT: Successful in its Bid to Secure Flights to Dominican Rep -------------------------------------------------------------- The Daily Observer reports that Antigua and Barbuda has been successful in its bid to secure flights to and from Antigua & Barbuda to the Dominican Republic (DR) in time for the Christmas holidays. LIAT, operating as Leeward Islands Air Transport, said it will be operating the flights to and from Santo Domingo on Friday, December 19, Sunday, December 21, Tuesday, December 23, Sunday, December 28 and Friday, January 2, according to the Daily Observer. The report notes that members of the Hispanic community have welcomed the news, which comes after numerous pickets and other interventions on their part. The report recalls that LIAT temporary suspended flights between Antigua & Santo Domingo in October, while British Airways abandoned its London-Antigua-Dominican Republic route in the same month. The report relays that since the flights were pulled, several nationals also submitted petitions to both airlines. The Hispanics also picketed the Office of the Consulate of the Dominican Republic, in Creekside, the report adds. About LIAT LIAT, operating as Leeward Islands Air Transport, is an airline headquartered on the grounds of V. C. Bird International Airport in Antigua. It operates high-frequency inter-island scheduled services serving 21 destinations in the Caribbean. The airline's main base is VC Bird International Airport, Antigua and Barbuda, with bases at Grantley Adams International Airport, Barbados and Piarco International Airport, Trinidad and Tobago. * * * As reported in the Troubled Company Reporter-Latin America on March 10, 2014, Caribbean360.com said that Leeward Islands Air Transport (LIAT) said it will take "decisive action" to deal with unprofitable routes as the Antigua-based airline seeks to make its operations financially viable. On Sept. 23, 2013, the TCRLA, citing Trinidad and Tobago Newsday, reported that there's much upheaval at the highest levels of LIAT -- the Board and the Executive. Following the sudden resignation of Chief Executive Officer Captain Ian Brunton, comes the news from highly reliable sources that long time chairman Jean Holder is all set to follow. David Evans replaced Mr. Brunton as chief executive officer. ================= A R G E N T I N A ================= ARGENTINA: Open to Lifting Currency Controls, Central Banker Says ----------------------------------------------------------------- Charlie Devereux at Bloomberg News reports that Argentina may start to unwind currency restrictions gradually if economic conditions are favorable, according to central bank President Alejandro Vanoli. The first yearly gain in reserves since 2010 has allowed Argentina to stabilize its external accounts in the face of "speculative attacks," Mr. Vanoli said in an interview on Buenos Aires-based Radio America, according to Bloomberg News. The government eased some currency controls in January by allowing Argentines to buy dollars for savings depending on income level, Bloomberg News relates. "The idea is not to create any further restrictions and to slowly normalize things," Bloomberg News quoted Mr. Vanoli as saying. "Everything will be evaluated depending on the state of our economy and the global economy. Obviously, the aim is for a complete normalization, which should be done in a gradual manner," Mr. Vanoli added. The administration of President Cristina Fernandez de Kirchner introduced restrictions on Argentines' ability to buy dollars in 2011 after she began to tap reserves to pay international debt, Bloomberg News relates. After falling about 50 percent to an eight-year low of US$26.7 billion in April from January 2011, reserves have since gained US$4.1 billion, Bloomberg News relays. * * * The Troubled Company Reporter-Latin America, on Aug. 1, 2014, reported that Argentina defaulted on some of its debt late July 30 after expiration of a 30-day grace period on a US$539 million interest payment. Earlier that day, talks with a court- appointed mediator ended without resolving a standoff between the country and a group of hedge funds seeking full payment on bonds that the country had defaulted on in 2001. A U.S. judge had ruled that the interest payment couldn't be made unless the hedge funds led by Elliott Management Corp., got the US$1.5 billion they claimed. The country hasn't been able to access international credit markets since its US$95 billion default 13 years ago. As a result, reported the TCR-LA on Aug. 1, Standard & Poor's Ratings Services lowered its unsolicited long-and short-term foreign currency sovereign credit ratings on the Republic of Argentina to selective default ('SD') from 'CCC-/C'. The TCR-LA, on Aug. 4, 2014, also reported that Fitch Ratings downgraded Argentina's Foreign Currency Issuer Default Rating (IDR) to 'RD' from 'CC', and its Short-Term Foreign Currency Issuer Default Rating to 'RD' from 'C'. Meanwhile, Moody's Investors Service affirmed Argentina's Caa1 issuer rating, which also applies to domestic law bonds, confirmed the (P)Caa2 rating for its foreign law bonds, and affirmed the Ca rating on the original defaulted bonds. The long-term issuer rating was placed on negative outlook, reported the TCR-LA on Aug. 5, 2014. On Aug. 8, 2014, the TCR-LA reported that Moody's Latin America Agente de Calificacion de Riesgo affirmed the deposit, debt, issuer and corporate family ratings on Argentina's banks and financial institutions, both on the global and national scales. The outlook on these ratings has been changed to negative from stable. At the same time, the rating agency has affirmed the banks' Caa2 foreign-currency deposit ratings and Not- Prime short-term ratings. The banks' standalone E financial strength ratings corresponding to caa1 baseline credit assessments (BCA) have also been affirmed. The TCR-LA, On Aug. 6, 2014, also reported that DBRS Inc. has downgraded Argentina's long-term foreign currency issuer rating from CC to Selective Default (SD). The short-term foreign currency rating has been downgraded to Default (D), from R-5. The long-term and short-term local currency issuer ratings have been confirmed at B (low) and R-5, respectively. The trend on the long-term local currency rating is Negative, and the trend on the short-term local currency rating is Stable. On Nov. 3, 2014, the TCR-LA reported that Fitch Ratings downgraded Argentina's rating on Par Bonds issued under Foreign Law to 'D' from 'C' as Argentina has not been able to cure the missed coupon payments on its par bonds issued under foreign law after the expiration of the 30-day grace period on Oct. 30. According to Fitch's criteria, this constitutes an event of default and Fitch has downgraded the affected securities to 'D'. In addition, Fitch has affirmed: -- Foreign Currency Issuer Default Rating (IDR) at 'RD'; -- Local Currency IDR at 'CCC'; -- Short-term Foreign Currency IDR at 'RD'; -- Country Ceiling at 'CCC'. -- Performing Foreign Law Exchanged Securities (Global 17) at 'C'; -- Local Currency exchanged bonds under Argentine Law at 'CCC'; -- Foreign and Local Currency non-exchanged securities under Argentine Law at 'CCC'; -- Discount Bonds issued under Foreign Law at 'D'. PAN AMERICAN: Bolivia to Pay US$357 Million for 2009 Asset Seizure ------------------------------------------------------------------ EFE News reports that Bolivia's government has agreed to pay US$357 million in compensation to Anglo-Argentine Pan American Energy for the 2009 nationalization of its Chaco Petroleum natural gas unit. The head of Bolivian state-owned energy company YPFB, Carlos Villegas, and a representative of Buenos Aires-based PAE, Argentina's Alejandro Bulgheroni, signed the deal at the presidential palace in La Paz, according to EFE News. Pan American Energy LLC is engaged in the exploration and production of oil and natural gas. It develops and participates in hydrocarbon exploration and production operations in the main sedimentary basis in Argentina, Chile, and Bolivia. The company is based in Buenos Aires, Argentina. * * * As reported in the Troubled Company Reporter-Latin America on Nov. 17, 2014, Fitch Ratings has affirmed Pan American Energy LLC Sucursal Argentina's (PAME) long-term senior unsecured bond rating for its USD500 million notes due May 2021 at 'B/RR3'. ============= B E R M U D A ============= TRADEWYND RE LTD: Fitch Rates Class 3-A Notes at 'BB-sf' -------------------------------------------------------- Fitch Ratings assigns ratings to the series 2014-1 principal at- risk variable rate notes issued by Tradewynd Re Ltd., a duly formed special-purpose insurer in Bermuda, as follows: -- $100,000,000 Class 3-A notes expected to mature Jan. 8, 2018 'BB-sf'; -- $100,000,000 Class 1-B notes expected to mature Jan. 8, 2016 'Bsf' ; -- $300,000,000 Class 3-B notes expected to mature Jan. 8, 2018 'Bsf'. The Rating Outlook is Stable. TRANSACTION SUMMARY The series 2014-1 notes provide multi-year (or, in the case of the class 1-B notes, single-year), indemnity, per occurrence coverage to various insurance subsidiaries or affiliates of American International Group, Inc. (AIG) (Fitch IDR 'A-', Stable Outlook) for named storm and earthquake perils. Similar to prior notes issued by Tradewynd Re, coverage is expansive and covers both consumer (about 41% of the total net limit) and commercial lines. The consumer line is predominantly related to high net worth individuals and can include items such as homes with replacement values in excess of $1 million, yachts and art collections. The commercial line includes property (about 37% of the total net limit) such as airports and sport stadiums, energy and engineering risks (about 7%) such as pipelines and oil rigs and specialty risks (about 14%) such as airplanes (both large and small) and cargo and hull damage. Losses can include direct damage from the peril but also claims arising after the event such as, but not limited to, looting, fire following the event, sprinkler leakage or business interruption. The coverage area is the contiguous 48 United States (and territories and districts) plus Alaska and Hawaii, Canada, Mexico and the Caribbean islands plus Bermuda and the Gulf of Mexico. The Gulf of Mexico is for named storms only and excludes the earthquake peril. Classes 1-B and 3-B are exposed to principal loss if a covered event exceeds $3 billion in covered losses. Class 3-A has a unique attachment point structure. At the onset, it is set at $4.5 billion but if the class 3-B notes experience any principal loss, the class 3-A attachment point will "drop down". For example, if the class 3-B note experienced a loss of two-thirds principal from an event, the class 3-A note attachment point drops down to $3.5 billion for the following covered event. If the Class 3-B note is totally exhausted, then for the following event, the class 3-A note assumes the class 3-B note position with an attachment point of $3 billion. Absent changes in exposures or risk appetite by AIG (subject to certain parameters), the class 3-A notes will be re- established at an attachment point of $4.5 billion on any reset date. On a historical basis, AIG has not experienced any actual natural catastrophe losses that would have triggered a loss event on these three classes of notes. As a point of reference, AIG reported estimated ultimate net losses for Hurricane Katrina and Superstorm Sandy of $2.2 billion and $2.1 billion, respectively. It is estimated that these notes would not have been triggered using historical named storm paths with the current exposure base. Three historical earthquakes (New Madrid in 1811, San Francisco in 1906 and Charleston in 1886) would have caused a complete or partial principal loss with today's exposure base. In the event of a covered loss, gross losses will be adjusted for explicit loss adjustment factors of 1.06 for consumer losses and 1.04 for commercial losses and currency exchange rates for losses outside the U.S. Ultimate Net Losses are the Adjusted Gross Losses less any inuring reinsurance multiplied by a Growth Limitation Factor which is the lesser of 1.0 and the ratio of the Growth Allowance Factor (1.10) and the Actual Growth Factor. Class 3-A and 3-B have annual rate resets on January 1 of 2016 and 2017 which will reflect changes to the covered business exposure and changes to the risk appetite by AIG. This could lead to an increase (or decrease) in risk levels inherent in the notes. However, investors will be compensated with an adjustment to the interest spread. Each class of notes may be extended up to three additional years if certain qualifying events occur. However, the notes are not exposed to any further catastrophe events during this extension period. The interest spread may be reduced if a covered event occurs. The notes may be redeemed at any time due to Early Redemption Events such as regulatory or tax law changes. The repayment of the notes to the noteholders occurs subsequent to any qualified payments to AIG for covered events. Noteholders have no recourse against AIG. KEY RATING DRIVERS The rating is based on the weakest link approach in the evaluation of the natural catastrophe risk, the counterparty risk of AIG and the credit risk of the collateral assets. The natural catastrophe risk represents the lowest rating amongst the three risk segments and currently drives the final rating of each note. The rating analysis in support of the evaluation of the natural catastrophe risk is highly model-driven. As with any model of complex physical systems, particularly those with low frequencies of occurrence and potentially high severity outcomes, the actual losses from catastrophic events may differ from the results of simulation analyses. Fitch is neutral to any of the major catastrophe modeling firms that is selected by the issuer to provide the model analysis, and thus Fitch did not include any explicit margins or qualitative haircuts to the probability of loss metric provided by the modeling firm. Risk Management Solutions, Inc. (RMS) provided the risk analysis using their proprietary software and risk models implemented as RiskLink version 13.1 and Miu version 2.9. These models will be escrowed and used by RMS in determining any future annual reset. Based on one million simulations, the one-year attachment probability for classes 1-B and 3-B was 3.35% while class 3-A was 1.43%. This corresponds to implied ratings of 'B' and 'BB-', respectively, using Fitch's ILS Calibration Matrix with a one-year time-to-risk maturity assumption. Various sensitivity tests performed by RMS produced modest increases in the attachment probabilities but not enough to change the rating category. Results from other third-party modeling firms or from AIG, which could indicate different levels of attachment probability, were not provided. Noteholders are exposed to this basis risk or the difference between actual net losses incurred by AIG and the RMS modeled net losses. RMS is the calculation agent for each reset date. They will use updated exposures from AIG along with the initial attachment and exhaustion levels and the escrow model to calculate updated sensitivity case attachment probabilities and expected losses. As long as those probabilities do not exceed the Maximum Sensitivity Case Attachment Probability of 3.06% for class 3-A and 6.18% for class 3-B and the Maximum Sensitivity Case Expected Loss of 2.35% for class 3-A and 3.51% for class 3-B, then the attachment levels will not change. However, investors will be compensated with a corresponding increase to the interest spread for any increase in the expected loss. The adjustment to the Initial Risk Interest Spread will be an increase by a factor of 1.80 for class 3-A and 1.60 for class 3-B for every basis point increase in the expected loss. For example, if the class 3-B reaches its Maximum Sensitivity Case Expected Loss (3.51%), the Adjusted Risk Interest Spread will increase 1.76%. The suite of models in RiskLink version 13.1 include "RMS North Atlantic Hurricane Models" (last updated in 2013), "RMS Hawaii Hurricane Model" (2007), "RMS North America Earthquake Models (2009) and RMS Caribbean Earthquake Models" (1999). The North Atlantic Hurricane Models include storm surge which are losses occurring with increase tidal waves washing onto surrounding low- lying areas. All models included loss amplification due to economic demand surge, claims inflation and "super-cat". Tradewynd Re specific costs of the consumer and commercial insurance adjustment factors and a currency conversion table were modeled. Secondary perils of fire following earthquakes and sprinkler leakage were included. Since the covered business and covered losses are expansive, there are certain unmodeled risks in the transaction. Areas of additional uncertainty include: 1) hurricane losses cover the entire U.S. whereas RMS models the 21 primarily coastal states in the U.S. and eastern areas of Canada and Mexico, 2) potential hurricanes forming in the Pacific Basin, 3) losses due to tsunamis caused by earthquakes, and 4) losses that occur when wind speeds do not exceed 50 mph. Ancillary losses such as inland flooding due to hurricane-related rainfall or due to dam or levee ruptures caused by earthquakes are not modeled. The analysis did not include the potential for a 10% growth in the underlying exposures. The model simulates only hurricane activity making landfall, thus it understates claim losses to named storms not recognized as hurricanes or hurricanes that become degraded. Tradewynd Re is reliant on the counterparty credit risk of AIG to make periodic payments for the Risk Interest Spread. In the event that any payment is not made, principal will be returned to noteholders. In addition, the notes ultimately "follow the fortunes" of AIG over the next three years in regard to underwriting of new business, the availability of insuring reinsurance and claim loss management and reserve practices. The data quality and detail provided to RMS appears robust. An independent claim review is provided by KPMG (Bermuda) and the loss reserve specialist for Tradewynd Re is Ernst & Young (Bermuda). In addition to state regulation, AIG is also subject to federal oversight since it was designated a systemically important financial institution (SIFI) by the U.S. Treasury pursuant to Dodd-Frank and also as a global systemically important insurer (GSII). This increased regulation may restrict certain business activities and could potentially trigger an Early Redemption Event. Proceeds from this issuance will be held in a collateral account and used to purchase high-credit-quality money market funds meeting defined eligibility criteria, otherwise funds will be held in cash. Investment yields generated from these permitted investments are passed directly to noteholders as the other component of the variable rate. A downgrade of a permitted investment will not necessarily lead to a replacement of that investment. Further, noteholders are exposed to possible market value risk if the net asset value of a money market fund falls below $1.00 or is redeemed in adverse market conditions. Finally, certain actions may be required if the collateral account is invested in money market funds and FATCA is deemed to apply in late 2016. A legal opinion regarding Tradewynd Re's consolidation with its owner, a Bermuda purpose trust, is not available. This opinion typically provides assurances that the issuer will not be consolidated with its owner in the event of its owner's insolvency and is common in most structured finance transactions. Fitch gained comfort with a lack of such an opinion given that the owner is a non-operating company and Fitch's understanding of the lack of a concept of substantive consolidation under Bermuda law. RATING SENSITIVITIES This rating is sensitive to the occurrence of a qualifying natural catastrophe event(s), AIG's election to reset the note's attachment levels, changes in the data quality, the counterparty rating of AIG and the rating or performance on the assets held in the collateral account. If a qualifying covered event occurs that results in a loss of principal, Fitch will downgrade the note to reflect an effective default and issue a Recovery Rating. As mentioned above, if the Updated Sensitivity Case Attachment Probability reaches the Maximum Sensitivity Case Attachment Probability of 3.06% for class 3-A and 6.18% for class 3-B (which are considerably higher than the Sensitivity Case Initial One-Year Attachment Probability of 1.56% and 3.68%), the implied rating on class 3-A would fall to 'B' and class 3-B would fall to 'B-'. The escrow model may not reflect future methodology enhancements by RMS which may have an adverse or beneficial effect on the implied rating of the notes were such future methodology considered. =========== B R A Z I L =========== BANESTES S.A.: Fitch Assigns 'BB' Long-Term Issuer Default Rating ----------------------------------------------------------------- Fitch Ratings assigned the following ratings to Banestes S.A. Banco do Estado do Espirito Santo (Banestes): --Foreign and Local Currency Long-Term Issuer Default Rating (IDR): 'BB', Outlook Stable --Foreign and Local Currency Short Term IDR: 'B' --Long Term National Rating: 'A+(bra)', Outlook Stable --Short Term National Rating: 'F1(bra)' --Support Rating: '3' --Viability Rating: 'bb-' KEY RATING DRIVERS Banestes's IDRs and support ratings reflect its strategic importance to the State of Espirito Santo (ES). The bank is the tax collecting agent for ES, promotes transfers to municipalities, and is responsible for the cash management of the state. Furthermore, it has strong operations in state public entities, providing services and granting credits to suppliers and public servants, in special payroll deductible loans. In Fitch's opinion, the probability of ES support to the bank in a stress scenario would be moderate, due to uncertainties as to the controller's capacity to bear such costs. ES's financial performance was moderate, with the operating margin reduction in 2013. On the other hand, the state has been reducing its debt levels and increasing investment in recent years with positive impact on tax collections. The viability rating (VR) reflects the bank's regional relevance, with adequate liquidity, capitalization and stable deposit source. Banestes relies on low-cost retail funding, provided by its agency network, mainly in ES. It has cautiously pursued higher diversification, issuing Financial Bills (Letras Financeiras) in the local market and increasing its funding in real estate credit bills (LCIs). Banestes operates as a commercial bank in different segments focused both on corporates and on individuals. Banestes' activities are concentrated in Espirito Santo, where the bank holds around 30% of the deposits and 17% of credit operations, through a network of 133 agencies covering all 78 municipalities. Impaired loans (classified in 'D-H' risk classes, as per Brazilian Central Bank regulations) accounted for 9.5% of the portfolio, against 9.0% in 2013 and 6.5% in 2012. Fitch notes that, despite the bank's moderate performance, the provisioning level remains in line with its retail profile (covering 59% of impaired loans). Credits past due over 90 days (non-performing loans - NPLs) reached 3.7% in June 2014, in line with its peers (3.5%). Banestes reported profitability ratios slightly below that of its peers (13.6% ROE), although at adequate levels. The bank maintained credit growth in line with that experienced in the banking system and should end 2014 within projections between 8%- 11%. Liquidity remains adequate and covered around 40% of the deposits in June 2014. The quality of Banestes capital base is good and is fully composed of Tier 1 capital, with Fitch's core capital ratio of 14.5% in September 2014 (against 13.3% in 2013) compatible with its retail profile. RATING SENSITIVITIES Banestes' ratings could be changed in the case of modifications in Fitch's assessment on the probability and willingness of its controller, the state of Espirito Santo, to provide support to Banestes, if necessary. The bank's VR is sensitive to a change in Fitch's assumptions regarding exposure to regional risk, minimum Fitch core capital, and credit quality. The VR could be downgraded if Banestes presents NPLs (credits past due over 90 days) above 6% and/or Fitch Core Capital below 10%. SETE BRASIL: S&P Lowers Global Scale Rating to 'BB' --------------------------------------------------- Standard & Poor's Ratings Services downgraded QGOG Constellation S.A. (QGOG) and Sete Brasil Participacoes S.A (Sete) to global scale 'BB' from 'BB+'. At the same time, S&P lowered the national scale ratings on Sete and its debentures to 'brAA' from 'brAA+'. S&P also lowered the corporate credit rating to 'BB+' from 'BBB-' and revised downward the SACP on Odebrecht Oleo e Gas S.A. (OOG) to 'bb' from 'bb+'. The rating on the company now incorporates one notch of uplift to the SACP due to potential support from the Odebrecht group. The outlook on these ratings remains stable. "The downgrade on three companies and our downward revision of OOG's SACP reflects the SACP revision on Petrobras. Petrobras chartered the vast majority of the vessels involved from these three projects under long-term contracts with tenors that range between three and 10 years," said Standard & Poor's credit analyst Candela Macchi. "We believe these contracts constitute a key component for the ratings on these entities' operating assets. Therefore, we assigned an equal counterparty risk to Petrobras' SACP, which acts as a rating constraint on the ratings of these three companies," said the analyst. Moreover, the ongoing corruption investigations are hampering Sete's efforts to secure long-term financing under the initial conditions S&P considered for the rating because a lack of funding could result in delays in the project execution. ========================== C A Y M A N I S L A N D S ========================== ATRIUM II: Commences Liquidation Proceedings -------------------------------------------- At an extraordinary meeting held on Nov. 6, 2014, the members of Atrium II resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands CA CAT: Commences Liquidation Proceedings ----------------------------------------- At an extraordinary meeting held on Nov. 6, 2014, the members of CA Cat CO LLC resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands CANADIAN GLOBAL: Commences Liquidation Proceedings -------------------------------------------------- At an extraordinary meeting held on Nov. 6, 2014, the members of Canadian Global Funding Corporation resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands CRAFT 2011-2: Commences Liquidation Proceedings ----------------------------------------------- At an extraordinary meeting held on Nov. 6, 2014, the members of Craft 2011-2, Ltd resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands CRAFT 2011-3: Commences Liquidation Proceedings ----------------------------------------------- At an extraordinary meeting held on Nov. 6, 2014, the members of Craft 2011-3, Ltd resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands CSAM FUNDING IV: Commences Liquidation Proceedings -------------------------------------------------- At an extraordinary meeting held on Nov. 6, 2014, the members of CSAM Funding IV resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands EG CAPITAL: Commences Liquidation Proceedings --------------------------------------------- On Oct. 21, 2014, the members of EG Capital Market Fund (SPC) Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2014, will be included in the company's dividend distribution. The company's liquidator is: Matthew Wright c/o Omar Grant Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Grand Cayman KY1-1103 Windward 1, Regatta Office Park Cayman Islands EXS FUND: Commences Liquidation Proceedings ------------------------------------------- On Oct. 21, 2014, the members of EXS Fund (SPC) Ltd resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2014, will be included in the company's dividend distribution. The company's liquidator is: Matthew Wright c/o Omar Grant Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Grand Cayman KY1-1103 Windward 1, Regatta Office Park Cayman Islands GOLUB CAPITAL: Commences Liquidation Proceedings ------------------------------------------------ At an extraordinary meeting held on Nov. 6, 2014, the members of Golub Capital Senior Loan Opportunity Fund, Ltd resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands KATONAH V: Commences Liquidation Proceedings -------------------------------------------- At an extraordinary meeting held on Nov. 6, 2014, the members of Katonah V, Ltd resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands LIONGATE SELECT: Commences Liquidation Proceedings -------------------------------------------------- On Oct. 22, 2014, the sole shareholder of Liongate Select SPV Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 17, 2014, will be included in the company's dividend distribution. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Attorneys-at-Law for the Company Reference: RD Telephone: (+1) 345 949 4123 Facsimile: (+1) 345 949 4647; or Mourant Ozannes Cayman Liquidators Limited Reference: Peter Goulden Telephone: (+1) 345 949 4123 Facsimile: (+1) 345 949 4647 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands MS DAIRY HOLDINGS: Commences Liquidation Proceedings ---------------------------------------------------- On Oct. 21, 2014, the members of MS Dairy Holdings resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2014, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands MS DAIRY HOLDINGS II: Commences Liquidation Proceedings ------------------------------------------------------- On Oct. 21, 2014, the members of MS Dairy Holdings II, Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 8, 2014, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands ODEBRECHT OFFSHORE: S&P Lowers Rating on Notes to 'BB' ------------------------------------------------------ Standard & Poor's Ratings Services lowered its ratings on Odebrecht Offshore Drilling Finance Ltd.'s (OODFL) notes to 'BB' from 'BBB-'. The outlook on the notes remains stable. The downgrade reflects the SACP revision on Petrobras. Petrobras chartered the four drillships involved in the OODFL transaction under long-term contracts with a tenor of 10 years for the ODN I and II vessels and of seven years for the Norbe VI and ODN Tay IV vessel. S&P believes these contracts constitute a key project component for the debt rating on OODFL's notes. Therefore, S&P assigned an equal credit dependency assessment (CDA) to Petrobras' SACP, which acts as a rating constraint on the debt rating on OODFL. The 'BBB-' corporate credit rating on Petrobras now reflects a 'bb' SACP and S&P's view of the "very high" likelihood of extraordinary support from the government in the event of financial distress. S&P equalized OODFL's revenue or offtaker CDA with Petrobras' SACP, and not with its credit rating, because, in S&P's view, the SACP reflects the risk associated to the nature of these contractual obligations. S&P could envision scenarios of stress for Petrobras under which the sovereign provides extraordinary support through, (for example, liquidity injections, loans from public banks, or other types of credit facilities). However, S&P believes that this extraordinary support won't necessarily flow on a timely basis to meet the liabilities of drillship suppliers. R/C BRAZIL: Commences Liquidation Proceedings --------------------------------------------- On Nov. 4, 2014, the shareholder of R/C Brazil Ethanol Investment II-A 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: Thomas Walker 712 Fifth Avenue, 36th Floor New York NY 10019, USA Telephone: +1 (345) 914 6365 SCHAHIN II FINANCE: S&P Lowers Rating on Notes to 'BB' ------------------------------------------------------ Standard & Poor's Ratings Services lowered its rating on Schahin II Finance Limited's notes to 'BB' from 'BBB-'. The outlook on the notes remains stable. The downgrade reflects the SACP revision on Petrobras. This company chartered Schahin II's Sertao drillship under a 10-year contract. S&P believes this contract constitutes a key project component for the debt rating on Schahin II's notes. Therefore, S&P assigned an equal credit dependency assessment (CDA) to Petrobras' SACP, which acts as a constraining factor on the debt rating on Schahin II. The 'BBB-' corporate credit rating on Petrobras now reflects a 'bb' SACP and S&P's view of the "very high" likelihood of extraordinary support from the government in the event of financial distress. S&P equalized the revenue or offtaker CDA of Schahin II to the SACP and not Petrobras' credit rating, because, in S&P's view, the SACP reflects the risk associated to the nature of these contractual obligations. S&P could envision scenarios of stress for Petrobras under which the sovereign provides extraordinary support through for example liquidity injections, loans from public banks or other types of credit facilities. However, S&P believes that this extraordinary support won't necessarily flow on a timely basis to meet the liabilities of drillship suppliers. UNIVERSA ASYMMETRY: Commences Liquidation Proceedings ----------------------------------------------------- At an extraordinary meeting held on Oct. 29, 2014, the members of Universa Asymmetry Offshore Fund Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Dec. 17, 2014, will be included in the company's dividend distribution. The company's liquidator is: DMS Corporate Services Ltd c/o Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands ================== C O S T A R I C A ================== BANCO DE COSTA RICA: Fitch Rates ST Issuer Default Rating at 'B' ---------------------------------------------------------------- Fitch Ratings has affirmed Banco de Costa Rica's (BCR) Issuer Default Rating (IDR) at 'BB+' and short term IDR at 'B'. Fitch also affirms BCRs Viability Rating (VR) at 'bb+'. In addition, the bank's national ratings were also affirmed. KEY RATING DRIVERS - IDRs, SENIOR DEBT, AND NATIONAL RATINGS The bank's IDRs, senior debt ratings, and national ratings are driven by the potential support of the Costa Rican government (rated 'BB+'; Stable Outlook by Fitch), as stated in the National Banking System Law. According to this law, all state-owned banks have the guarantee and full collaboration of the state. The explicit guarantee allows BCR's long-term IDR, senior debt ratings and outlooks to be aligned with the sovereign rating. RATING SENSITIVITIES - IDRs, NATIONAL RATINGS AND SENIOR DEBT Changes in Costa Rica's sovereign rating may trigger changes in the bank's ratings. KEY RATING DRIVERS-VIABILITY RATING The bank's VR reflects its strong franchise, ample and diversified deposits, adequate loss absorption capacity -reflected in acceptable capital position and modest reserves coverage for non- performing loans, manageable asset quality and modest profitability. BCR's franchise is strengthened the sovereign explicit guarantee for the bank's liabilities, its extensive branch network and ample deposit base. BCR is one of the strongest competitors in the Costa Rican banking system, with the second largest market share of loans and deposits. Through its subsidiaries, the bank is able to further diversify non-interest income and to extend its business outside of Costa Rica. BCR benefits from diversified and stable base deposits. In 2012 was complemented by subordinated debt and a longer term international issuance. In Fitch's view, these changes improved the bank's assets and liabilities management and contributed to reducing mismatches in foreign currency. At the same time, liquidity coverage is adequate and the investments portfolio is actively managed to maintain adequate liquidity support for public deposits and to comply with regulatory capital requirements. Loan quality deterioration is manageable and similar to 'BB+' rated peers. Non-performing loans increased to 2.0% of total loans as of September 2014 and reserves coverage decreased to 74% of non-performing loans. Reserves coverage is expected to increase over the next 48 months as a new regulatory requirement established mandatory loan loss provisions for low risk credits. BCR maintained adequate capital metrics, although with a negative trend. BCR's Fitch Core Capital ratio is in line with its international peers' average at 14.8%; however, the bank holds limited buffer above regulatory capital ratios minimums of 10%. In Fitch's opinion, the USD10 million subordinated debt agreements helps maintain capital metrics and future growth. Consistent with BCR state owned nature, profitability is modest and below the Costa Rican banking system average. Operating profits are constrained by a narrow margin, high operating expenses and narrow income diversification. Profitability prospects are sensitive to changes in market and economic conditions. RATING SENSITIVITIES -VR Upgrades in the bank's VR are unlikely in the foreseeable future, given its strong relation to the government in both sides of the balance sheet. A downgrade of the Costa Rican sovereign rating will trigger downgrades in the Bank's VR and IDR. A deterioration in capital generation capacity that drives a material reduction in the core capital metrics might also trigger a downgrade in BCR's VR. KEY RATING DRIVERS -, SUPPORT RATING, SUPPORT RATING FLOOR BCR's support rating (SR) of '3' reflects Fitch's opinion that there is a moderate probability of support from the state. In Fitch's opinion, the bank has a clear policy roll and the explicit support of the state. Support probability is limited by the sovereign rating. The bank's Support Rating Floor (SRF) is equalized to the sovereign rating, given the explicit guarantee from the government towards the bank and its systemic importance. RATING SENSITIVITIES - SUPPORT RATING AND SUPPORT RATING FLOOR BCR's support SR and SRF are sensitive to changes in the sovereign rating. Fitch has affirmed the following ratings: International ratings --Long-term IDR at 'BB+'; Outlook Stable; --Short-term IDR at 'B'; --Long-term local currency IDR at 'BB+'; Outlook Stable; --Short-term local currency IDR at 'B'; --Long-term senior unsecured bonds at 'BB+'; --Viability Rating at 'bb+'; --Support Rating at '3'; --Support Rating Floor at 'BB+'. National ratings: --Long-term national rating at 'AA+(cri)'; Outlook Stable; --Short-term national rating at 'F1+(cri)'; --Long-term senior unsecured bonds at 'AA+(cri)'; --Commercial paper at 'F1+(cri)'. ============= J A M A I C A ============= DIGICEL GROUP: Merger With Claro was Proper, Appeal Court Says -------------------------------------------------------------- RJR News reports that the Jamaica Court of Appeal has closed the chapter on the 2011 merger of Digicel Group Limited and Claro, saying the merger was effected properly. This is after the Fair Trading Commission (FTC) raised concern about the merger saying it was not allowed to exercise its jurisdiction over the merger of the two entities, according to RJR News. But the Court of Appeal ruling on Dec. 19 said while the FTC had jurisdiction over the telecoms sector, its Act does not give it jurisdiction over mergers of telecom entities, the report relates. The report discloses that the Supreme Court ruled in 2012 that the FTC had such jurisdiction, but Digicel Group disagreeing with the original ruling filed an appeal. In the ruling handed down, the Court of Appeal said it was the Minister with responsibility for the telecoms sector which had authority to give the go ahead for the merger of the companies through the transfer of Claro's operating license to Digicel, the report relays. Digicel and Claro merged in 2011 through an agreement which allowed Claro to pull out of Jamaica in exchange for Digicel assets in Central America, the report adds. 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-Latin America on May 27, 2014, Fitch Ratings has affirmed the ratings of Digicel Group Limited (DGL) and its subsidiaries Digicel Limited (DL) and Digicel International Finance Limited (DIFL), collectively referred as 'Digicel' as: DGL --Long-term Issuer Default Rating (IDR) at 'B' with a Stable Outlook; --USD 2 billion 8.25% senior subordinated notes due 2020 at 'B- /RR5'; --USD 1 billion 7.125% senior unsecured notes due 2022 at 'B- /RR5'. DL --Long-term IDR at 'B' with a Stable Outlook; --USD 800 million 8.25% senior notes due 2017 at 'B/RR4'; --USD 250 million 7% senior notes due 2020 at 'B/RR4'; --USD 1.3 billion 6% senior notes due 2021 at 'B/RR4'. DIFL --Long-term IDR at 'B' with a Stable Outlook; --Senior secured credit facility at 'B+/RR3'. JAMAICA: IMF Board Approves US$67 Million Disbursement ------------------------------------------------------ The Executive Board of the International Monetary Fund (IMF) completed the sixth review of Jamaica's economic performance under the program supported by a four-year, SDR 615.38 million (about US$932 million at the time of approval) arrangement under the Extended Fund Facility (EFF). The completion of the review enables an immediate purchase of an amount equivalent to SDR 45.95 million (about US$67 million). The EFF arrangement was approved on May 1, 2013. Following the Board discussion of the review, Mr. Naoyuki Shinohara, Deputy Managing Director, and Acting Chair made the following statement: "The authorities' commitment to the program under the Extended Fund Facility has remained strong. Fiscal performance was broadly on track and all quantitative performance targets for end- September were met. Structural reforms have progressed on schedule. "Macroeconomic performance under the program continues to be good and growth is showing signs of picking up. Wide-ranging actions to boost growth and employment are nonetheless critical for the success of the program. While the ongoing economic stabilization and debt reduction are essential pillars of the growth strategy, reforms to enhance the business climate should be accelerated - including by cutting red tape, reforming the energy sector, and making the public sector more client-oriented. "Achieving the program's ambitious fiscal goals on a sustained basis will require further actions to strengthen public financial management and revenue administration, and to contain the wage bill. The preparation of the 2015/16 budget offers an opportunity to strengthen the quality of the fiscal adjustment, including by advancing public sector reform. These efforts will help provide additional resources for priority budgetary outlays. "Expeditious implementation of the plans for financial sector reform, including by bringing into effect the Banking Services Act and the new framework for repo transactions, combined with strong contingency planning and resolution frameworks, will improve the soundness of the financial system." =========== M E X I C O =========== EMPRESAS ICA: Moody's Affirms B2 CFR & Changes Outlook to Stable ---------------------------------------------------------------- Moody's Investors Service has changed Empresas ICA, S.A.B. de C.V. (ICA)'s rating outlook to stable from negative and affirmed the company's B2 corporate family and senior unsecured debt ratings. Ratings Rationale The outlook change was prompted by Moody's expectation of a recovery in the construction industry fundamentals, along with the refinancing of ICA's short term debt and the gradual improvement in its credit metrics. Moody's believe that the lower leverage level of 6.8 times as of September 31, 2014 (from 11.6 times in December 31, 2012) could be temporary, reversing as the company's construction activity reactivates. However, Moody's don't foresee a material deterioration in ICA's credit profile over the next quarters, given the company's focus in reducing debt with proceeds from assets sales and its leverage target of consolidated reported net debt / EBITDA of 5 times. Also supportive of the stable outlook are the positive business prospects in Mexico, in the context of the country's energy reform and the new National Plan for Infrastructure. Given the sizeable projects, the local content requirements and the complexities of operating in a country like Mexico, company's like ICA, with expertise in the execution and long term relationships with government-related entities, should benefit the most. For example, Moody's expect to see an increasing number of consortiums formed with local players and, since around 50% of the investments will target the energy sector, the joint venture between ICA and Fluor would be very well positioned to capture a significant portion of it. However, Moody's also anticipate that these positive prospects will attract foreign construction players, increasing competition. Somewhat offsetting this competitive risk is ICA's favorable operating track record as well as its solid long-term business relationship with major government-related entities such as Pemex (A3 stable) and CFE (Baa1 stable). This advantage is particularly relevant when partnering with selected international and local companies to bid for large construction or concession projects. ICA's ratings are based on the company's weak credit metrics related to debt leverage and interest coverage as well as historically weak liquidity. The ratings also factor ICA's high dependence on short term bank debt renewals as well as asset sales to fund operations and committed equity injections to its portfolio of concessions. Supporting ICA's ratings are its leading position in the construction industry in Mexico, its long-term track record of participating in the largest construction and infrastructure projects in the country, and the company's diversified and solid portfolio of concessions in the road, airport, water treatment, and ports, among others, most of which have solid margins and favorable earnings prospects. ICA's liquidity risk is high, tempered by a high reliance on short term debt to fund working capital needs mainly related with construction business. However, the company has been recently improving its credit profile by extending debt maturities. In the 2Q14, ICA placed USD 700 million in senior notes due 2024 and the proceeds were used to prepay USD 200 million in notes due 2017 and to refinance short-term debt at the construction segment, improving significantly the company's debt maturity profile. As of September 30, 2014, ICA had about MXN 7.2 billion in cash and cash equivalents, which was enough to cover MXN 6.7 million in debt maturing in the next 12 months. Nevertheless ICA has about MXN 2.7 billion in capex planned for the same period, mainly related to committed equity contributions to concessions, which must be funded before the end of 2014. The stable outlook on ICA's ratings reflects its sustainable recovery in operating performance and better visibility about the cash flow generation at the construction business in Mexico. The outlook also considers Moody's expectation that, although recovery in the construction segment will result in higher working capital needs, liquidity and credit profile will not be materially deteriorated as a result. Supporting Moody's expectations are ICA's recent focus on refinancing operating debt at corporate level to be later paid with proceeds from its assets recycling process. Also considered in Moody's expectations is the company's net leverage target of 5 times in the next couple of years. If the company's maturing concession portfolio either increase dividends to ICA or is monetized via asset sales, with the proceeds used for significant debt reduction, a positive credit momentum could develop. In this regard, the ratings could be positively affected if the company manages to maintain its consolidated Moody's-adjusted leverage below 6.5 times and reported leverage at construction business below 4 times on a sustained basis, while maintaining positive revenue growth. For an upgrade to be considered, ICA's operating margins should be stable and it would have to maintain a backlog sufficient to cover at least 12 months of execution. ICA's ratings could be downgraded if the company's liquidity position worsens with limited prospects for a short-term improvement, if Moody's believe that revenue or margins during the next 12 to 18 months will be weaker than expected, if debt leverage increases further, or if it becomes difficult for the company to renew its revolver credit lines, which fund its working capital needs. The last rating action on ICA was on May 20 2014, when Moody's assigned a B2 rating to ICA's up to USD600 million guaranteed senior unsecured notes due in 2019. Headquartered in Mexico City, Empresas ICA, S.A.B. de C.V. ("ICA") is the largest infrastructure and construction company in Mexico. In the last twelve months (LTM) ended in September, 2014, ICA's revenue and Moody's-adjusted EBITDA margin were about USD 2.6 billion and 26.7% respectively. ICA is also the main sponsor in 18 concessions, from toll roads to water treatment plants, among others. MULTICAT MEXICO 2012-I: S&P Keeps C Notes' B- Rating on Watch Neg. ------------------------------------------------------------------ Standard & Poor's Ratings Services said that it kept its 'B- (sf)' rating on MultiCat Mexico Ltd.'s series 2012-I class C notes on CreditWatch with negative implications, where it was placed on Sept. 18, 2014. On Sept. 14, 2014, Hurricane Odile made landfall near Cabo San Lucas in Mexico, an area where the class C notes cover losses from hurricanes. On Sept. 16, 2014, Swiss Reinsurance Co. Ltd. submitted an event notice to the calculation agent, AIR Worldwide Corp. S&P placed its rating on the class C notes on CreditWatch to reflect the possibility that a triggering event may have occurred. Based on the event definition in the transaction documents, an event would be triggering if the central pressure was equal to or lower than 932 millibars (mbs). The transaction documents also state that noteholders would lose 50% of their principal amount if the central pressure in the covered area is greater than 920mbs. On Sept. 18, S&P indicated that it would resolve the CreditWatch placement once the calculation agent had completed its event report. This report should be available within 15 business days of the hurricane event parameters date, which is either the date the first tropical cyclone report is released, or 120 days after Hurricane Odile made landfall. So far, no cyclone report for Hurricane Odile has been published on the National Hurricane Center's website and it is not yet 120 days after Hurricane Odile made landfall. Until S&P receives the event report, it is keeping the rating on CreditWatch negative. If the event report concludes that a triggering event occurred, S&P will lower its rating to 'CC (sf)' and subsequently lower it to 'D (sf)' on the payment date when the principal loss occurs. If no triggering event has occurred, S&P will affirm its rating at 'B- (sf)'. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD & TOBAGO: Chamber Slams Excuses for US$ Shortage --------------------------------------------------------- Trinidad Express reports that the Trinidad and Tobago Chamber of Commerce -- the country's biggest business group -- said it was disappointed by statements regarding the continued shortage of foreign exchange for business use, made by Central Bank Governor Jwala Rambarran earlier this month. "The Governor's assertions against the business community and cryptic comment about 'conducting business with companies with terrorist links' as a way to explain away the difficulties with getting foreign exchange is simply unacceptable. The T&T Chamber feels compelled to publicly voice its objections, especially since he has issued no clarification following several responses from individuals in business," the Chamber said in a statement obtained by Trinidad Express. Speaking at the launch of the latest Monetary Policy Report at the Chaguanas Chamber of Commerce on December 1, Mr. Rambarran said: "We've noticed a trend, where businesses make noise for foreign exchange to pay bills for trade-related purposes and actively lobby the authorized dealers and Central Bank for US dollars. When the money is provided, the funds are promptly deposited in their foreign currency account and left unused and the noise about not being able to get money for business continues. I do have one tip for businesses trying to get foreign exchange: it helps if you don't conduct business with companies with terrorist links as we have strict laws on anti-money laundering and combatting the financing of terrorism," the report discloses. The Chamber said it has held several private discussions with the Central Bank and other regulatory authorities to ensure that there is an adequate distribution of foreign currency for the smooth conduct of business activity, the report relates. "While the Chamber is cognisant of the need for regulatory control and fully concurs with need for compliance with the laws of Trinidad and Tobago, care must be taken to ensure that the innocent does not suffer along with the 'guilty'," it stated, the report discloses. Statements like those recently made use a broad brush approach and have the potential to tarnish not just local businesses but international operators who are engaged in legitimate business activity, the Chamber added, the report says. ================= V E N E Z U E L A ================= VENEZUELA: Fitch Cuts Issuer Default Ratings to 'CCC' ----------------------------------------------------- Fitch Ratings has downgraded Venezuela's Long-term foreign and local currency Issuer Default Ratings (IDRs) from 'B' to 'CCC'. The issue ratings on Venezuela's senior unsecured foreign and local currency bonds are also downgraded from 'B' to 'CCC'. The Country Ceiling is downgraded from 'B' to 'CCC' and the Short-term foreign currency IDR from 'B' to 'C'. KEY RATING DRIVERS Venezuela's downgrade reflects the following key factors: International oil prices have declined sharply in Q4'14 increasing balance of payments pressures in the context of reduced external financing flexibility and rising macroeconomic instability. Venezuela's commodity dependence is high, as oil is expected to account for an estimated 92% of current external receipts (CXR) and 50% of central government revenues in 2014. Low oil prices will erode the main source of FX for the economy. The capacity of the Venezuelan economy to respond to this external shock is constrained by the relatively low level of international reserves, constraints to their operational liquidity, and limited sources of external financing. International reserves, at USD21.4 billion, are about half the level of end-2008 when Venezuela last confronted the sharp oil price decline resulting from the global financial crisis. In addition, operational liquidity of reserves is constrained, as 72% of international reserves are held in gold and most of these are held at the central bank in Venezuela. Nontransparent off-budget FX funds will likely come under pressure, as central bank and extraordinary oil revenue contributions will be curtailed. Venezuela's sources of FX financing are limited, the sovereign does not have direct access to international debt markets, and significant multilateral funding is not expected in 2015-2016; China remains the sovereign's main source of financing. Nevertheless, there is no indication that China will increase its exposure to Venezuela beyond the roll-over of existing facilities. Macroeconomic instability has increased, driven by the inconsistency between FX, and fiscal and monetary policies. Continued rationing of FX, widespread price controls, and monetary financing have fueled inflationary pressures. Inflation averaged 55% in the first eight months of 2014. The spread between the official and parallel exchange rates continues to widen at a rapid pace, thus further fueling inflation and currency pressures. Fitch estimates that the economy may have contracted by close to 4% in 2014 and expects Venezuela to remain in recession in 2015. In addition to lack of transparency in government off-budget funds, transparency and timely reporting of official data for inflation, balance of payments and national accounts has suffered since 2013. Continued deterioration in terms of data provision and/or accuracy of official statistics could not only further dent confidence, but also pose limits to the capacity to assess the overall fiscal and external strength of the sovereign. Venezuela sovereign amortizations average 1.2% of GDP in 2015-16 with external debt repayments at 0.4% of GDP (3.5% of exports), using Fitch GDP estimates. As the state-owned oil company PDVSA faces an average of USD3.4 billion (0.6% of GDP) in external bond amortizations, average annual public sector external bond amortizations equal close to 22% of the current level of international reserves. While the sovereign has a track record of servicing debt through periods of high political and financial stress, the lagging policy response to address external pressures and macroeconomic imbalances, and the present decline in international oil prices materially weaken Venezuela's capacity to service debt. A high level of political polarization, the social impact of the ongoing economic crisis, marked divisions within the government in terms of economic policy, and the expectation of a heavily contested electoral cycle in 2015 could limit policy adjustments and increase the risk of social unrest. RATING SENSITIVITIES The main factors that could, individually or collectively, result in a downgrade are: --A sustained decline in oil prices that leads to further build-up of external and fiscal financing constraints; --Further deterioration in Venezuela's external accounts and international reserves position; --Signs of weakening willingness to service debt; --Political instability that compromises FX revenues and results in further deterioration of Venezuela's policy environment. The main factors that could, individually or collectively, result in an upgrade are: --Policy adjustments that lead to reduced external and macroeconomic vulnerabilities; --A recovery in oil prices that eases financing constraints for the economy; -- Strengthening of Venezuela's external and fiscal buffers and increased data transparency. KEY ASSUMPTIONS The ratings and Outlooks are sensitive to a number of assumptions: --Fitch recognizes that there are material downside risks to its current oil price average of USD83 (Brent) in 2015 and USD90 in 2016. --Fitch assumes that China will continue to provide financing to Venezuela through the renewal of existing oil facilities. ================= X X X X X X X X X ================= * BOND PRICING: For the Week From Dec. 15 to Dec. 19, 2014 ---------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- BES Finance Ltd 2.9 EUR 211913000 PDVSA 6 11/15/2026 USD 4500000000 ESFG International Ltd 5.8 EUR 52950000 PDVSA 6 5/16/2024 USD 5000000000 PDVSA 5.4 4/12/2027 USD 3000000000 Mongolian Mining Corp 8.9 3/29/2017 USD 600000000 PDVSA 5.5 4/12/2037 USD 1500000000 Hindili Industry 8.6 11/4/2015 USD 380000000 BES Finance Ltd 4.5 EUR 95767000 Automotores Gildemeister SA 8.3 5/24/2021 USD 400000000 SMU SA 7.8 2/8/2020 USD 300000000 NQ Mobile Inc 4 10/15/2018 USD 172500000 Inversiones Alsacia SA 8 8/18/2018 USD 347300000 Venezuela Governement 7.7 4/21/2025 USD 1599817000 Glorious Property Holdings Ltd 13 3/4/2018 USD 400000000 Renhe Commercial 13 3/10/2016 USD 600000000 Bank Austria 1.9 EUR 97608000 China Precisoin 7.3 2/4/2018 HKD 1028000000 BCP Finance Co 2.4 EUR 99063406.25 Automotores Gildemeister SA 6.8 1/15/2023 USD 300000000 BA-CA Finance Cayman 2 Ltd 2 EUR 51481000 Argentina Bonar Bonds 26 9/10/2015 ARS 5424358000 Inversora de Electrica 6.5 9/26/2017 USD 130263886 BCP Finance Co 4.2 EUR 72112000 Mongolian Mining Corp 8.9 3/29/2017 USD 600000000 Argentina Government 4.3 12/31/2033 JPY 5840497000 PDVSA 6 5/16/2024 USD 5000000000 Argentina Boden Bonds 2 9/30/2014 ARS 930445250 PDVSA 6 11/15/2026 USD 4500000000 Greenfields Petroleum Corp 9 5/31/2017 CAD 23750000 Hindili Industry 8.6 11/4/2015 USD 380000000 Argentina Government 4.3 12/31/2033 JPY 2553017000 Argentina Bocon 2 1/3/2016 ARS 1608749924 Argentina Government 0.5 12/31/2038 JPY 21037843000 Automotores Gildemeister SA 8.3 5/24/2021 USD 400000000 Caixa Geral De Depositos Finance 1 EUR 44885000 SMU SA 7.8 USD 300000000 Renhe Commercial 13 3/10/2016 USD 600000000 Caixa Geral De Depositos Finance 2 EUR 65843000 Inversiones Alsacia SA 8 8/18/2018 USD 347300000 Automotores Gildemeister SA 6.8 1/15/2023 USD 300000000 BPI Capital Finance Ltd 2.9 EUR 15290000 Banif Finance Ltd 1.6 EUR 42234000 Banco BPI SA/Cayman Islands 4.2 11/14/2035 EUR 20000000 Empresas La Polar SA 3.8 10/10/2017 CLP 5000000 City of Buenos Aires Argentina 2 1/28/2020 USD 146771000 Aguas Andinas SA 4.2 12/1/2026 CLP 3289471.68 City of Buenos Aires Argentina 2 12/20/2019 USD 113229000 Venezuela Governement 7 3/31/2038 USD 1250003000 Empresa de Transporte 5.5 7/15/2027 CLP 3732799.8 Cia Cervecerias Unidas SA 4 12/1/2024 CLP 1050000 Almendral Telecomunicaciones SA 3.5 12/15/2014 CLP 644441.04 Cia Sud Americana de Vapores SA 6.4 10/1/2022 CLP 607142.76 Decimo Primer 4.5 10/25/2041 USD 37800000 Provincia del Chaco 4 12/4/2026 USD 10111047.85 Ruta de Bosque 6.3 3/15/2021 CLP 5062781.25 Talcan Chillan 2.8 12/15/2019 CLP 2978764.16 EMP Ferrocarriles Estado 6.5 1/1/2026 CLP 788572.14 *********** 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 202-362-8552. * * * End of Transmission * * *