/raid1/www/Hosts/bankrupt/TCRLA_Public/150130.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
Friday, January 30, 2015, Vol. 16, No. 021
Headlines
A R G E N T I N A
PLUSPETROL: Protest Partially Halts Production at Oil Block
YPF SA: Signs Oil, Gas Deal With China's Sinopec
B R A Z I L
BRASIL PHARMA: Moody's Downgrades Corporate Family Rating to B3
OAS FINANCE: S&P Lowers Rating to 'D' & Removes from Watch Neg.
OGX PETROLEO: Eike Batista Resigns as Chairman
PETROLEO BRASILEIRO: Releases Delayed Third Quarter Results
C A Y M A N I S L A N D S
AFRICAN DAWN: Members Receive Wind-Up Report
ATALAYA SPECIAL: Shareholder Receives Wind-Up Report
ATALAYA SPECIAL MASTER: Shareholder Receives Wind-Up Report
CINNAMON EUROPEAN: Shareholder Receives Wind-Up Report
CINNAMON EUROPEAN MASTER: Shareholder Receives Wind-Up Report
DIAMOND SPRINGS: Members Receive Wind-Up Report
EUROPE FUNDING I: Moody's Lowers Rating on EUR880MM Notes to Caa3
IRAQ PHOENIX: Shareholders Receive Wind-Up Report
MRM Limited: Members Receive Wind-Up Report
ORIF MANAGEMENT: Shareholder Receives Wind-Up Report
Q-BLK ALPHA: Shareholders Receive Wind-Up Report
SEAHUNTER DRILLER 1: Member Receives Wind-Up Report
SEAHUNTER DRILLER 4: Member Receives Wind-Up Report
VIOGNIER (CAYMAN): Shareholders Receive Wind-Up Report
C O S T A R I C A
BANCO DE COSTA: Fitch Affirms BB+ LT IDR, Revises Outlook to Neg.
J A M A I C A
JAMAICA: JCC Wants Government to Prioritize Growth Agenda
M E X I C O
ALMACENADORA SUR: Moody's Withdraws B2 Corporate Family Rating
NII HOLDINGS: AT&T to Combine Nextel Mexico With Iusacell
P E R U
INTERCORP PERU: S&P Assigns 'BB' Rating to $300MM Sr. Unsec. Notes
INTERCORP PERU: Moody's Assigns Ba2 Senior Unsecured Debt Rating
T R I N I D A D & T O B A G O
TRINIDAD & TOBAGO: Says Oil Price Drop Resulted in $TT7.5BB Loss
TRINIDAD & TOBAGO: Energy Market Changes Represent Challenge
- - - - -
=================
A R G E N T I N A
=================
PLUSPETROL: Protest Partially Halts Production at Oil Block
-----------------------------------------------------------
EFE News reports that a protest by a group of around 380 Indians
has halted drilling at a minimum of 14 wells within Peru's largest
oil block, an area operated by Argentina's Pluspetrol, the company
said in a statement.
For his part, the president of the Federation of Indigenous
Communities of the Corrientes River, or Feconaco, Carlos Sandi
Maynas, told Efe that the protest has completely halted output
from 16 wells at the Lote 1AB block's Jibarito oil base camp,
located in northern Peru near the border with Ecuador, according
to EFE News.
YPF SA: Signs Oil, Gas Deal With China's Sinopec
------------------------------------------------
EFE News reports that Argentine state-controlled energy company
YPF said it signed a memorandum of understanding with China's
Sinopec pertaining to the eventual development of conventional and
non-conventional oil and gas projects in the South American
nation.
Signed in Beijing by YPF CEO Miguel Galuccio and Sinopec Chairman
Fu Chengyu, the agreement expresses the companies' intention to
form a joint venture in the areas of exploration, drilling,
production, refining, regasification, distribution and sales, the
statement said, according to EFE News.
YPF SA is an energy company, operating a fully integrated oil and
gas chain with leading market positions across the domestic
upstream and downstream segments.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 11, 2014, Fitch affirmed YPF S.A.'s Caa1 Global Local
Currency Issuer Rating and Baa1.ar National Local Currency Issuer
Rating. The outlook was changed to Negative from Stable.
===========
B R A Z I L
===========
BRASIL PHARMA: Moody's Downgrades Corporate Family Rating to B3
---------------------------------------------------------------
Moody's America Latina has downgraded Brasil Pharma's corporate
family ratings to B3/B1.br from B1/Baa3.br. The B3 rating level
has historically been associated with default frequencies of 6.4%
and 21.2% over 1- and 3-year investment horizons, respectively.
The outlook remains negative.
Ratings downgraded as follows:
Issuer: Brasil Pharma S.A.
Corporate Family Rating: to B3 from B1 (global scale); B1.br from
Baa3.br (national scale)
The outlook for the ratings is negative.
Ratings Rationale
The downgrade of Brasil Pharma's CFR to B3/B1.br was prompted by
the continued and severe deterioration in the company's liquidity
over the last few months. As of September 2014, its BRL 37 million
in cash compared to short term debt of BRL 461 million. Brasil
Pharma's ongoing weak operating performance, amidst a longer than
expected restructuring process and slow return to profitability,
is an additional negative. On the other hand, the ratings
incorporate the perceived support from strong controlling
shareholder BTG Pactual bank, which can ease short-term debt
negotiations and has historically provided the company with
substantial liquidity.
Brasil Pharma's recent underperformance is related to operational
difficulties arising from the integration of acquired businesses,
internal incentive policies and inefficient working capital
management. As part of a restructuring process started on November
2013, the company revised key processes, reassessed
commercial/marketing policies and conducted a clean-up of excess
inventory, that caused a gross margin squeeze and abnormally high
working capital consumption. The impact imposed to the credit
metrics culminated in a covenant breach and, eventually, an early
redemption of its debentures issued in two series (totaling BRL
555 million) driving BR Pharma's liquidity cushion down. The
redemption was funded with a capital increase amounting to BRL 400
million and short-term bank loans in the amount of BRL 230
million.
Brasil Pharma's B3 ratings are still supported by the good medium-
term fundamentals of the drug retail industry in Brazil, including
the aging of the population, low penetration of healthcare plan
beneficiaries and increase in the offering of generic drugs.
The negative outlook incorporates the risk that Brasil Pharma is
not able to renegotiate short-term maturities in the following
months, in which case the ratings would be further downgraded.
The ratings would also be downgraded if the perceived support the
company receives from BTG Pactual diminishes.
The ratings could experience upward pressure in case of a
substantial improvement in liquidity, operating performance,
capital structure and overall credit metrics. Quantitatively,
positive pressure on the ratings would arise if the company
delivers positive free cash flow, if EBITA/interest expense is
above 1.75x and adjusted leverage considering the capitalization
of operating leases remains below 5.25x on a consistent basis.
Founded in 2009 and headquartered in the state of Sao Paulo,
Brasil Pharma S.A. has the BTG Pactual bank as its main
shareholder. The company is among the three largest drugstore
chains in the country in terms of sales and had 723 owned stores
in the south, northeast, north and central-west regions of the
country as of September 30th, 2014. Brasil Pharma also runs a
franchise business under the "Farmais" brand, with 500 stores. Net
revenues for the LTM period ended September 30th, 2014 amounted to
BRL 3.5 billion (approximately USD 1.5 Billion at current exchange
rates), with adjusted EBITDA margin of -6.7% (including the
capitalization of operating leases).
OAS FINANCE: S&P Lowers Rating to 'D' & Removes from Watch Neg.
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its issue-level rating
on OAS Finance Ltd. to 'D' from 'CC'. S&P also removed the rating
from CreditWatch negative.
On Jan. 26, 2015, Brazilian engineering and construction and
infrastructure investment group, OAS S.A., failed to make interest
payment on the perpetual notes, which its wholly-owned financial
vehicle, OAS Finance, issued. The corporate credit rating on OAS
is already at 'D', reflecting S&P's expectation of general debt
obligations restructuring.
OGX PETROLEO: Eike Batista Resigns as Chairman
----------------------------------------------
Rogerio Jelmayer and Luciana Magalhaes at The Wall Street Journal
report that former Brazilian billionaire Eike Batista has resigned
from his posts as chairman and member of the board of the oil
company he created.
The announcement, made late Tuesday, Jan. 27, 2015, by the firm,
Oleo e Gas Participacoes SA, formerly known as OGX Petroleo e Gas
Participacoes SA, is part of the restructuring process of the
embattled company, according to The WSJ.
Created in 2007 with plans to become a global oil player, OGX
filed for bankruptcy protection in October 2013, amid a deep
financial crisis, which affected Mr. Batista's industrial
conglomerate, the report notes.
As part of its efforts to emerge from bankruptcy, the company has
converted debt into equity and has received investments from
creditors, the report relates. In the process, Mr. Batista agreed
to have his 50.2% stake in the firm reduced to 5%, the report
discloses.
Earlier this month, an OGX spokeswoman said that the company cut
its payroll expenses by 40% in January amid falling oil prices.
The company let go 35 people, or 26% of its employees, she said,
the report relays.
The report says that at the end of last year, a local court
accepted a request made by MMX Sudeste Mineracao SA, a unit of MMX
Mineracao e Metalicos SA, for bankruptcy protection. The unit
said it filed for bankruptcy to protect its operations, the report
notes. MMX owns MMX Sudeste Mineracao, MMX Corumba and has a 35%
stake in Porto do Sudeste do Brasil.
MMX became the third company of Mr. Batista to operate under
bankruptcy protection, following Oleo e Gas Participacoes and
shipbuilder OSX Brasil SA, the report discloses.
Once the richest person in Brazil, Mr. Batista is on trial for
charges of manipulating financial markets and taking advantage of
privileged information regarding the oil company he created, the
report notes. Mr. Batista and his attorneys have denied
wrongdoing.
About OGX Petroleo
Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participacoes
S.A., now known as Oleo e Gas, is an independent exploration and
production company with operations in Latin America.
OGX filed for bankruptcy in a business tribunal in Rio de Janeiro
on Oct. 30, 2013, case number 0377620-56.2013.8.19.0001. The
bankruptcy filing puts US$3.6 billion of dollar bonds into default
in the largest corporate debt debacle on record in Latin America.
The filing by the oil company that transformed Eike Batista into
Brazil's richest man followed a 16-month decline that wiped out
more than US$30 billion of his personal fortune.
The filing, which in Brazil is called a judicial recovery, follows
months of negotiations to restructure the dollar bonds, in which
OGX sought to convert debt to equity and secure as much as US$500
million in new funds. OGX said Oct. 29, 2013 that the talks
concluded without an agreement.
PETROLEO BRASILEIRO: Releases Delayed Third Quarter Results
-----------------------------------------------------------
EFE News reports that Brazilian state-controlled oil company
Petroleo Brasileiro S.A. released its delayed 2014 third-quarter
earnings report on Jan. 28, but the results do not indicate how
badly a massive corruption scandal distorted its asset valuations.
The company's share price plunged after the unaudited results were
released without the writedowns after a two-month delay (auditor
PriceWaterhouseCoopers has declined to certify the results due to
the graft allegations), falling by more than 10 percent shortly
after the market opening, according to EFE News.
Based in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. --
Petrobras (Brazilian Petroleum Corporation) -- explores for oil
and gas and produces, refines, purchases, and transports oil
and gas products. The Company has proved reserves of about 14.1
billion barrels of oil equivalent and operates 16 refineries, an
extensive pipeline network, and more than 8,000 gas stations.
As reported in the Troubled Company Reporter-Latin America on
Dec. 11, 2014, Moody's Cut Petrobras S.A.'s baseline credit
assessment to ba1.
==========================
C A Y M A N I S L A N D S
==========================
AFRICAN DAWN: Members Receive Wind-Up Report
--------------------------------------------
The members of African Dawn Finance Ltd. received on Dec. 22,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Appleby Trust (Cayman) Ltd.
c/o Richard Gordon
Telephone: +1 (345) 949 4900
75 Fort Street
P.O. Box 1350 Grand Cayman KY1-1108
Cayman Islands
ATALAYA SPECIAL: Shareholder Receives Wind-Up Report
----------------------------------------------------
The shareholder of Atalaya Special Opportunities Fund Ltd.
received on Dec. 23, 2014, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Daniel M Levinson
780 Third Avenue
New York
New York 10017
USA
ATALAYA SPECIAL MASTER: Shareholder Receives Wind-Up Report
-----------------------------------------------------------
The shareholder of Atalaya Special Opportunities Master Fund Ltd.
received on Dec. 23, 2014, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Daniel M. Levinson
780 Third Avenue, New York
New York 10017
USA
CINNAMON EUROPEAN: Shareholder Receives Wind-Up Report
------------------------------------------------------
The shareholder of Cinnamon European Structured Credit Fund
received on Dec. 23, 2014, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Elian Fiduciary Services (Cayman) Limited
c/o Desiree Jacob
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949 9877
CINNAMON EUROPEAN MASTER: Shareholder Receives Wind-Up Report
-------------------------------------------------------------
The shareholder of Cinnamon European Structured Credit Master Fund
received on Dec. 23, 2014, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Elian Fiduciary Services (Cayman) Limited
c/o Desiree Jacob
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949 9877
DIAMOND SPRINGS: Members Receive Wind-Up Report
-----------------------------------------------
The members of Diamond Springs International received on Dec. 29,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
EUROPE FUNDING I: Moody's Lowers Rating on EUR880MM Notes to Caa3
-----------------------------------------------------------------
Moody's Investors Service has downgraded the rating on notes
issued by House of Europe Funding I, Ltd.:
EUR880,000,000 Class A Notes Due September 28, 2015 (current
outstanding balance of EUR196,172,064), Downgraded to Caa3 (sf);
previously on Mar 15, 2012 Downgraded to Caa2 (sf).
House of Europe Funding I, Ltd., issued in June 2005, is a
collateralized debt obligation backed primarily by a portfolio of
European RMBS, CMBS and Corporate CDOs originated from 2006 to
2008.
Ratings Rationale
The rating action is due primarily to deterioration in the
transaction's over-collateralization ratio since June 2014. Based
on the trustee report dated December 17, 2014, the over-
collateralization ratio of the Class A/B is currently 54.5%,
versus 60.1% in June 2014.
The credit quality of the portfolio has also deteriorated since
June 2014. Moody's calculated WARF is currently 1432 compared to
1325 in June 2014.
Methodology Underlying the Rating Action
The principal methodology used in this rating was "Moody's
Approach to Rating SF CDOs" published in March 2014.
Factors That Would Lead To an Upgrade or Downgrade of the Rating:
This transaction is subject to a number of factors and
circumstances that could lead to either an upgrade or downgrade of
the ratings, as described below:
1) Macroeconomic uncertainty: This transaction is subject to a
high level of macroeconomic uncertainty, which could negatively
affect the ratings on the notes, in light of 1) uncertainty about
credit conditions in the general economy 2) divergence in the
legal interpretation of CDO documentation by different
transactional parties due to or because of embedded ambiguities.
2) Deleveraging: One source of uncertainty in this transaction is
whether deleveraging from unscheduled principal proceeds,
recoveries from defaulted assets, and excess interest proceeds
will continue and at what pace. Faster deleveraging than Moody's
expects could have a significant impact on the notes' ratings.
3) Recovery of defaulted assets: The amount of recoveries received
from defaulted assets reported by the trustee and those that
Moody's assumes as having defaulted as well as the timing of these
recoveries create additional uncertainty. Moody's analyzed
defaulted assets assuming limited recoveries, and therefore,
realization of any recoveries exceeding Moody's expectation in the
future would positively impact the notes' ratings.
Loss and Cash Flow Analysis:
Moody's applies a Monte Carlo simulation framework in Moody's
CDOROM(tm) to model the loss distribution for SF CDOs. The
simulated defaults and recoveries for each of the Monte Carlo
scenarios define the reference pool's loss distribution. Moody's
then uses the loss distribution as an input in the CDOEdge(tm)
cash flow model.
In addition to the base case analysis, Moody's also conducted
sensitivity analyses to test the impact of a number of default
probabilities on the rated notes. Below is a summary of the impact
of different default probabilities (expressed in terms of WARF) on
all of the rated notes (by the difference in the number of notches
versus the current model output, for which a positive difference
corresponds to lower expected loss):
Ba1 and below ratings notched up by two rating notches (842):
Class A: 0
Class B: 0
Ba1 and below ratings notched down by two notches (1750):
Class A: 0
Class B: 0
IRAQ PHOENIX: Shareholders Receive Wind-Up Report
-------------------------------------------------
The shareholders of Iraq Phoenix Fund received on Jan. 15, 2015,
the liquidator's report on the company's wind-up proceedings and
property disposal.
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
MRM Limited: Members Receive Wind-Up Report
-------------------------------------------
The members of MRM Limited received on Dec. 29, 2014, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
ORIF MANAGEMENT: Shareholder Receives Wind-Up Report
----------------------------------------------------
The shareholder of Orif Management, Ltd. received on Dec. 23,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Auramet International LLC
c/o Jonathan Turnham
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949 9877
Q-BLK ALPHA: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of Q-BLK Alpha Engine, Ltd. received on Dec. 29,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Jane Fleming
c/o Jane Fleming or Jean Ebanks
Telephone: (345) 945-2187
Facsimile: (345) 945-2197
P.O. Box 30464 Grand Cayman KY1-1202
Cayman Islands
SEAHUNTER DRILLER 1: Member Receives Wind-Up Report
---------------------------------------------------
The sole member of Seahunter Driller 1 Limited received on Jan. 5,
2015, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Yao Chye Chiang
4 Battery Road #34-01
Singapore 049908
SEAHUNTER DRILLER 4: Member Receives Wind-Up Report
---------------------------------------------------
The sole member of Seahunter Driller 4 Limited received on Jan. 5,
2015, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidator is:
Yao Chye Chiang
4 Battery Road #34-01
Singapore 049908
VIOGNIER (CAYMAN): Shareholders Receive Wind-Up Report
------------------------------------------------------
The shareholders of Viognier (Cayman) Limited received on Jan. 15,
2015, the liquidator's report on the company's wind-up proceedings
and property disposal.
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: Fitch Affirms BB+ LT IDR, Revises Outlook to Neg.
-----------------------------------------------------------------
Fitch Ratings has revised to Negative from Stable the Rating
Outlooks of the long-term Issuer Default Ratings (IDRs) of the
following four Costa Rican banks and one Panamanian subsidiary,
following the revision in Costa Rica's Outlook to Negative from
Stable:
-- Banco BAC San Jose, S.A. (BAC San Jose);
-- Banco de Costa Rica (BCR);
-- Banco Internacional de Costa Rica (BICSA);
-- Banco Nacional de Costa Rica (BNCR);
-- Banco Popular y de Desarrollo Comunal (BPDC).
Fitch has affirmed the long- and short-term foreign and local
currency IDRs, Viability Ratings (VR), and Support Ratings (SR) of
these issuers. These rating actions follow Fitch's recent
revision of Costa Rica's Outlook to Negative from Stable.
The ratings of BNCR and BCR are aligned with the sovereign due to
their 100% government ownership and explicit sovereign guarantees.
BICSA's ratings, in turn, are aligned with the ratings of BCR, its
parent. The Outlook revision of BPDC and BAC San Jose reflect the
sovereign's high level of influence over the financial sector and
the broader operating environment. A Negative Outlook indicates
that the IDRs of these banks would be downgraded in the event of a
Costa Rican Sovereign downgrade. Conversely, a revision of the
sovereign's IDR Outlook to Stable would likely prompt a similar
action on the banks' IDR Outlooks.
As stated in Fitch's rating criteria, banks are rarely rated above
the sovereign rating given the high influence of the operating
environment over banks' performance. As such, a downgrade of
Costa Rica's sovereign rating will very likely trigger a downgrade
of the banks' VRs included in this review. In Fitch's view,
further deterioration of the operating environment may result in
pressures in the financial profile for banks in Costa Rica, which
is a relevant factor that underpins the VRs of those banks.
The revision in Costa Rica's Outlook to Negative from Stable has
no impact on the National Ratings of BAC San Jose, BCR, BNCR,
BPDC, Banco Credito Agricola de Cartago (Bancredito) and Mutual
Cartago de Ahorro y Credito (Mucap) as the relative strengths and
weaknesses of each bank remain unchanged. The National Ratings in
Costa Rica of these institutions were affirmed with Stable
Outlook, indicating these ratings are unlikely to be downgraded
should Costa Rica's sovereign be downgraded. On the other hand,
National Ratings of BPDC and BICSA's issuance programs in El
Salvador, as well as BPDC's issuance in Panama, are very likely to
be downgraded due to local relativities in those countries, in the
event of a reduction on BPDC and BICSA's IDR and VR. In turn, the
long-term Outlook of the National Ratings in Panama of BICSA was
revised to Negative from Stable.
BAC San Jose
KEY RATING DRIVERS - IDR, VR, SR and National Ratings
BAC San Jose's IDRs and National Ratings reflect the support it
would receive from its parent, Banco de Bogota ('BBB+/F2'), should
it be required. Banco de Bogota's ability to support BAC San Jose
is reflected in its IDR. As part of BAC/Credomatic group, BAC San
Jose is considered as a 'core' subsidiary to its parent, based on
its meaningful size, its important contribution to consolidated
net income and its key role in Banco de Bogota's regional
strategy. The bank's SR of '2' reflects Banco de Bogota's high
probability to provide support to BAC San Jose, if required.
The VR reflects BAC San Jose's high performance and income
diversification, solid asset quality, as well as an adequate
capital levels considering the bank's risks and growth
expectations. The VR also considers the bank's high dollarization
and sovereign risk exposure.
RATING SENSITIVITIES - IDR, VR, SR and National Ratings
BAC San Jose's IDRs would be downgraded should Costa Rica's
sovereign rating and country ceiling be downgraded. In addition,
the IDRs and national ratings could change if Fitch's assessment
of Banco de Bogota's ability or willingness to support its
subsidiaries changes. BAC San Jose's VR would be downgraded
should Costa Rica's sovereign rating be downgraded, due to its
high exposure to sovereign risk. Also, should asset quality
deteriorate or capital ratio (Fitch Core Capital/Risk Weighted
Assets) decline below to 11% its VR would be pressured downwards.
BCR, BNCR, and Bancredito
KEY RATING DRIVERS - IDRs, VR, SR, Support Rating Floor (SRF),
Senior Debt, and National Ratings
BCR, BNCR, and Bancredito are fully owned by the Costa Rican
government and benefit from explicit sovereign guarantees
contained in Costa Rica's Banking Law. BNCR and BCR's
international long- and short-term ratings are aligned with Costa
Rica's sovereign Ratings and thus their IDRs' Outlooks were
revised to Negative from Stable, accordingly.
BCR's VR mainly reflects its adequate loss absorption capacity -
reflected in acceptable capital position and modest reserves
coverage for non-performing loans, and its weaker operating
environment. The bank's VR also considers its manageable asset
quality and modest profitability.
The key rating drivers with the highest influence on BNCR's VR are
its moderate risk appetite and adequate, although decreasing
capitalization metrics, as well as its weaker operating
environment. The rating also considers its strong local
franchise, ample funding as well as its modest performance and
weaker asset quality metrics relative to similarly rated
international peers.
BCR's and BNCR's 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 banks' SRF are equalized to the sovereign rating,
given the explicit guarantee from the government towards the bank
and its systemic importance.
In turn, the National ratings for the three state-owned banks were
affirmed with stable Outlook, as the banks preserve their relative
strength within the Costa Rican market.
RATING SENSITIVITIES - IDRs, VR, SR, Support Rating Floor (SRF),
Senior Debt, and National Ratings
Changes in Costa Rica's sovereign rating may trigger similar
changes in BCR and BNCR's IDRs, VR, SR, SRF, and senior debt
ratings. National ratings of the three state-owned banks are less
likely to be affected should Costa Rica's IDRs are downgraded.
BICSA
KEY RATING DRIVERS - IDR, VR, SR and National Ratings
BICSA's IDRs, National and senior debt ratings were affirmed
reflecting the support that the bank may receive from its main
shareholder, BCR, should it be required. Fitch believes that
support would be forthcoming if needed as in Fitch's view it is
considered a core subsidiary for its parent.
The affirmation of the bank's SR considers Fitch's view that the
moderate probability of support remains unchanged. The revision
of the Outlook of the bank's IDR and national rating to Negative
from Stable follows similar revision on BCR's IDRs and reflects
the potential direction of BCR's support capacity. BICSA's VR was
affirmed reflecting its stable and sound asset quality, moderate
profitability, stable funding and adequate capitalization.
RATING SENSITIVITIES - IDR, VR, SR and National Ratings
BICSA's Negative Outlook on the IDR and national ratings reflects
that a downgrade on BCR's IDRs will be reflected in a similar
action on BICSA's IDR and national ratings. The revision of the
Outlook of BCR's IDRs to Stable from Negative will be likely
reflected in a similar revision in BICSA's IDR and National Long-
Term rating. The bank's VR is sensitive to a change in
profitability, asset quality and capital position.
BPDC
KEY RATING DRIVERS - IDRs, VR, SR, SRF, National Ratings
BPDC's IDRs, VR and national ratings reflect its stand-alone
credit worthiness which includes a robust loss absorption
capacity, stable deposit base, good profitability ratios and
adequate asset quality. The bank's ratings also reflect the
moderate tenure mismatches in its asset and liability structure.
The bank's SR of '3' and SRF of 'BB' indicates that in Fitch's
view there is a moderate probability of support from the Costa
Rican Government despite having no explicit guarantee, given the
nature of the bank and its systemic importance.
RATING SENSITIVITIES - IDRs, VR, SR, SRF, National Ratings
A downgrade of the BPDC's VR -- and consequently of its IDRs --
could also be triggered by a reduction in the sovereign rating,
reflecting the increased risks of a deteriorated operating
environment. Also, a significant deterioration of the bank's
profitability and asset quality would place downward pressure on
the bank's VR, IDRs and national ratings.
BPDC's support SR and SRF are sensitive to changes in the
sovereign rating. In case the Costa Rican Sovereign Rating is
downgraded, the SR and SRF of the bank would also be downgraded.
MUCAP
KEY RATING DRIVERS - National Ratings
Mucap's ratings consider its inherent credit profile, which
includes a good asset quality, moderate profitability and tight
capital position. The ratings also factors in the sizeable share
of funds (84% of the total to September 2014) explicitly
guaranteed by the Costa Rican State. The issuances ratings are
driven by the explicit sovereign guarantees as stated in Costa
Rica's Banking Law.
RATING SENSITIVITIES - National Ratings
A downgrade on Mucap's national ratings could be triggered by a
sustained reduction on its capital ratio (Fitch Core Capital/Risk
Weighted Assets below to 10%). Fitch's sensitivity does not
currently anticipate developments with a high likelihood of
leading to a positive rating change. However, a strengthening of
the company's financial profile, which increases the bank's
capitalization and profitability, could be positive for the
ratings. The issuance ratings, which are support driven, are less
likely to be affected should Costa Rica's IDRs be downgraded as
its relative strength within the Costa Rican market would remain
unchanged.
Fitch has affirmed these ratings:
Banco BAC San Jose
International Ratings
-- Long-term IDR at 'BBB-'; Outlook revised to Negative from
Stable;
-- Short-term IDR at 'F3';
-- Local currency long-term IDR at 'BBB'; Outlook revised to
Negative from Stable;
-- Local currency short-term IDR at 'F3';
-- Support rating at '2';
-- Viability rating at 'bb+'.
National Ratings
-- Long-term National Rating at 'AAA(cri)'; Outlook Stable;
-- Short-term National Rating a 'F1+(cri)';
-- Long-term senior unsecured debt at 'AAA(cri)';
-- Short-term senior unsecured debt at 'F1+(cri)'.
Banco de Costa Rica
International ratings
-- Long-term IDR at 'BB+', Outlook revised to Negative from
Stable;
-- Short-term IDR at 'B';
-- Long-term local currency IDR at 'BB+', Outlook revised to
Negative from 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)'.
Banco Internacional de Costa Rica
International ratings
-- Long-term IDR at 'BB+'; Outlook revised to Negative from
Stable;
-- Short-term IDR at 'B';
-- Viability Rating at 'bb';
-- Support Rating at '3'.
National ratings
-- Long-term National rating at 'AA-(pan)'; Outlook revised to
Negative from Stable;
-- Short-term National rating at 'F1+(pan)';
-- Long-term senior unsecured bonds at 'AA-(pan)';
-- Commercial Paper at 'F1+(pan)'
-- Long-Term senior unsecured bonds at 'AA+(slv)'; Outlook
revised to Negative from Stable;.
Banco Nacional de Costa Rica
International ratings
-- Long-term IDR at 'BB+', Outlook revised to Negative from
Stable;
-- Short-term IDR at 'B';
-- Long-term local currency IDR at 'BB+', Outlook revised to
Negative from 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)'.
Banco Popular y de Desarrollo Comunal
International ratings:
-- Long-term IDR at 'BB+', Outlook revised to Negative from
Stable;
-- Short-term IDR at 'B';
-- Long-term local currency IDR at 'BB+', Outlook revised to
Negative from Stable;
-- Short-term local currency IDR at 'B';
-- 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)'.
-- Long-term senior unsecured bonds in Panama at 'AA-(pan)';
-- Commercial paper in Panama at 'F1+(pan)'.
-- Long-term senior unsecured bonds in El Salvador at
'AA+(slv)'; assigned Outlook Negative;
-- Commercial paper in El Salvador at 'F1+(slv)'.
Mutual Cartago de Ahorro y Prestamo
National ratings:
-- Long-term national rating at 'A(cri)', Outlook Stable;
-- Short-term national rating at 'F1(cri)';
-- Long-term senior secured bonds at 'AA+(cri)';
Banco Credito Agricola de Cartago
National ratings:
-- Long-term national rating at 'AA+(cri)', Outlook Stable;
-- Short-term national rating at 'F1+(cri)';
-- Long-term senior secured bonds at 'AA+(cri)';
-- Commercial paper at 'F1+(cri)'.
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J A M A I C A
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JAMAICA: JCC Wants Government to Prioritize Growth Agenda
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RJR News reports that the fast-tracking of the Growth Agenda and
tight economic management are some of the areas that the Jamaica
Chamber of Commerce (JCC) wants the country to focus on in 2015.
JCC President Warren McDonald outlined these priorities for his
trade association at Jan. 27's meeting of the Chamber's Board,
according to RJR News.
The report notes that Mr. McDonald said Jamaica must also increase
productivity in the public and private sectors; priorities public
sector reform, settle on an energy policy, bring the underground
economy into the formal sector and enter new export markets.
As reported in the Troubled Company Reporter-Latin America on
Sept. 23, 2014, Standard & Poor's Ratings Services affirmed its
'B-' long-term foreign and local currency and 'B' short-term
foreign and local currency sovereign credit ratings on Jamaica.
At the same time, S&P revised the outlook on the long-term
sovereign credit ratings to positive from stable. In addition,
S&P affirmed its 'B' transfer and convertibility (T&C) assessment.
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M E X I C O
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ALMACENADORA SUR: Moody's Withdraws B2 Corporate Family Rating
--------------------------------------------------------------
Moody's de Mexico has withdrawn all of Almacenadora Sur, S.A. de
C.V., Organizacion Auxiliar de Credito's (Alsur) ratings,
including its corporate family rating (CFR) of B2, long-term
global local currency issuer rating of B3, short-term global local
currency issuer rating of Not Prime, long-term Mexico National
Scale issuer rating of Ba2.mx and short-term Mexico National Scale
issuer rating of MX-4.
The outlook on all ratings before the withdrawal was stable.
A detailed list of ratings withdrawn is provided further below in
this press release.
Ratings Rationale
Moody's has withdrawn the rating for its own business reasons.
The long-term Mexican National Scale ratings of Ba.mx indicate
issuers or issues with below-average creditworthiness relative to
other domestic issuers. Moody's appends numerical modifiers 1, 2,
and 3 to each generic rating classification from Aa.mx through
Caa.mx (e.g, Ba2.mx). The modifier 2 indicates a mid-range ranking
of that generic rating category. The short-term Mexican National
Scale ratings of issuers rated MX-4 indicate below-average ability
to repay short-term senior unsecured debt obligations relative to
other domestic issuers.
The principal methodology used in these ratings was Finance
Company Global Rating Methodology published in March 2012.
The period covered in the financial information used to determine
Alsur's rating is between 31 December 2010 and 30 September 2014
(source: Moody's, CNBV and Alsur).
The sources and items of information used to determine the ratings
include 2014 interim financial statements (source: Alsur); year-
end 2012 and 2013 financial statements (source: Alsur) and
information on market position (source: CNBV).
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 ".za" for South Africa. For further
information on Moody's approach to national scale credit ratings,
please refer to Moody's Credit rating Methodology published in
June 2014 entitled "Mapping Moody's National Scale Ratings to
Global Scale Ratings".
The following ratings assigned to Alsur were withdrawn:
- Corporate family rating of B2
- Long-term global local currency issuer rating of B3
- Short-term global local currency issuer rating of Not Prime
- Long-term Mexican National Scale issuer rating of Ba2.mx
- Short-term Mexican National Scale issuer rating of MX-4
Alsur, headquartered in Mexico City, Mexico, reported total assets
of MXN831.3 million, shareholders' equity of MXN486.9 million and
a net loss of MXN2.6 million, as of September 2014.
NII HOLDINGS: AT&T to Combine Nextel Mexico With Iusacell
---------------------------------------------------------
AT&T Inc. said it will combine NII Holdings Inc.'s Mexican
operations operated by its indirect subsidiary, Nextel de Mexico,
S.A. de C.V., with recently acquired Iusacell to help create a
North American mobile service area covering 400 million consumers
and businesses in Mexico and the U.S., Gary Jacobson at The Dallas
Morning News reports.
As reported by the Troubled Company Reporter on Jan. 27, 2015, NII
Holdings on Jan. 26, 2015, disclosed that it has agreed to sell
its Mexican operations to AT&T for $1.875 billion, less the
outstanding net debt of the business at closing. The transaction
is subject to the approval of the U.S. Bankruptcy Court for the
Southern District of New York, regulatory approvals in Mexico, and
a competitive bidding process to be conducted under the
supervision of the U.S. Bankruptcy Court. It is expected to close
by mid-2015.
The transaction allows the Mexico team "to grow and thrive,
capitalizing on the opportunities in the Mexican telecom market,"
NII Holdings CEO Steve Shindler said in a statement.
About NII Holdings
NII Holdings Inc. through its subsidiaries provides wireless
communication services for businesses and consumers in Brazil,
Mexico and Argentina. NII Holdings has the exclusive right to use
the Nextel brand in its markets pursuant to a trademark license
agreement with Sprint Corporation and offers unique push-to-talk
("PTT") services associated with the Nextel brand in Latin
America. NII Holdings' shares of common stock, par value $0.001,
were publicly traded under the symbol NIHD on the NASDAQ Global
Select Market.
NII Holdings and 12 wholly owned subsidiaries sought bankruptcy
protection (Bankr. S.D.N.Y. Lead Case No. 14-12611) in Manhattan
on Sept. 15, 2014. The Debtors' cases are jointly administered
and are assigned to Judge Shelley C. Chapman. The Debtors have
tapped Jones Day as counsel and Prime Clerk LLC as claims and
noticing agent. NII Holdings disclosed $1.22 billion in assets
and $3.068 billion in liabilities as of the Chapter 11 filing.
The U.S. Trustee for Region 2 appointed five creditors of NII
Holdings to serve on the official committee of unsecured
creditors.
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P E R U
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INTERCORP PERU: S&P Assigns 'BB' Rating to $300MM Sr. Unsec. Notes
------------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' issue-level
rating to Intercorp Peru Ltd.'s (Intercorp) proposed issuance of
up to $300 million 10-year 144 A/Reg S senior unsecured notes. At
the same time, S&P affirmed its 'BB' corporate credit rating on
Intercorp. The outlook remains positive.
"The affirmation follows the company's announcement that it plans
to issue up to $300 million 10-year 144 A/Reg S senior unsecured
notes," said Standard & Poor's credit analyst Francisco Gutierrez.
S&P expects the company to use the proceeds for the refinancing of
its existing $250 million senior unsecured notes due 2019, which
the company issued in two tranches of $150 million (in 2009) and
$100 million (in 2010). S&P expects that the remaining $50
million will be used to repay other debt and for general corporate
purposes.
Intercorp Peru Ltd. is engaged in financial, insurance, retail,
and educational activities in Peru. Intercorp Peru Ltd. was
incorporated 1997 and is headquartered in Nassau, the Commonwealth
of the Bahamas.
INTERCORP PERU: Moody's Assigns Ba2 Senior Unsecured Debt Rating
----------------------------------------------------------------
Moody's Investors Service has assigned a Ba2 foreign currency
senior unsecured debt rating to Intercorp Peru Ltd.'s (Intercorp)
proposed debt issuance of US$ 300 million in senior notes, with a
maturity of up to 10 years. The rating outlook is stable.
The proceeds of the notes will be used to refinance Intercorp's
existing US$ 250 million of senior notes due in 2019.
Consequently, Intercorp's bonded debt will increase by a net of
US$ 50 million while its maturity is extended to up to 2025. The
notes will be governed under the laws of the State of New York.
The instrument will rank pari passu in right of payment with all
of the present and future senior obligations of Intercorp, other
than obligations preferred by law, that are not otherwise
expressly subordinated.
The following rating was assigned to Intercorp's US$ 300 million
proposed senior notes:
Foreign currency senior unsecured debt rating: Ba2, outlook
stable.
Rating Rationale:
Intercorp's Ba2 debt rating is two notches below the baa3 baseline
credit assessment of its main dividend contributor, Banco
Internacional del Peru (Interbank), Peru's fourth largest bank.
The debt rating reflects the structural subordination of Intercorp
to its operating subsidiaries, particularly Interbank and
Interseguro, the country's largest provider of annuities, coupled
with those subsidiaries' strong franchises and financial metrics.
Intercorp is entirely dependent on dividend flows from its
subsidiaries. Moody's also considered Intercorp's aggressive
growth strategy, as well as Moody's expectation that the group's
retail operations will not generate material dividend flows to the
holding company over the medium term, balanced by moderate debt
and double leverage at the holding company level.
Intercorp has been growing both its financial and retail
subsidiaries, benefiting from an economy that until recently has
been expanding at a robust pace. Nevertheless, Intercorp's retail
operations are not likely to generate material dividends until
2017. Growth of its financial operations has been driven by
Interbank's commercial lending activities, which have allowed it
to diversify the risk from its traditional focus on lending to
individuals.
However, Interbank, which accounted for about 60% of Intercorp's
total dividend receipts in 2014, is highly regulated by the
Peruvian Superintendency of Banks, Insurance, and Pension Funds
(SBS) and subject to minimum capital requirements that could
affect the upstreaming of dividends to Intercorp. Interseguro,
which is also regulated, contributed another 31% of total
dividends to Intercorp. The notes are not guaranteed by any of
Intercorp's subsidiaries.
The Ba2 rating for Intercorp's notes also takes into account the
transaction's lack of regulatory restrictions on holding company
dividends. Moody's noted that the Ba2 rating could come under
downward pressure if Intercorp's interest coverage, as measured by
net dividends received relative to financial expenses, falls below
3.0 times, or if cash and liquid investments fall below its annual
debt service requirements.
Net proceeds from the notes will continue to support the cash
needs of Intercorp and some of its other subsidiaries, including
the retail, real estate and education businesses, all of which are
expected to continue to grow strongly. Intercorp's highly
acquisitive strategy has successfully supported the company's
growth so far, but it has added to its risk profile. Despite good
risk management, the sustainability of this strategy is still to
be tested in light of Peru's slower economic growth environment.
The main challenges facing Intercorp in the near term center on
the earnings and thus dividend generating potential of the group's
retail operations in Peru. While these companies have well
established brands and their market penetration continues to rise,
some of them still have not yet reached break-even and will likely
require continued financial support, and therefore represent a
potential cash drain on the holding company.
Incorporated in the Bahamas, Intercorp Peru Ltd is the ultimate
holding company for a group of financial services companies, via
its 76.9% immediate subsidiary Intercorp Financial Services,
including Interbank, Interseguro and Inteligo. Retail operations
are organized under Intercorp Retail, a wholly-owned intermediate
holding company, and include Supermercados Peruanos, a food and
general merchandise retailer, InkaFarma, a pharmacy chain,
InRetail Shopping Malls, and Oechsle, a chain of department
stores.
Intercorp reported unconsolidated assets of PEN 5.9 billion,
shareholders' equity of PEN 4.9 billion and nine-month net income
of PEN 459 million as of September 2014. On a consolidated basis,
the group reported total assets of PEN 47.6 billion and
shareholders' equity (less non-controlling shareholders' equity)
of PEN 4.9 billion, as of September 2014.
The last rating action on Intercorp was on 6 March 2014 when
Moody's upgraded the senior debt rating to Ba2 from Ba3, in line
with the rise in Interbank's standalone baseline credit
assessment.
================================
T R I N I D A D & T O B A G O
================================
TRINIDAD & TOBAGO: Says Oil Price Drop Resulted in $TT7.5BB Loss
----------------------------------------------------------------
Caribbean360.com reports that the Trinidad and Tobago government
has reiterated its position that the drop in oil prices on the
global market is not a signal for a sudden change in its economic
development policies.
"We have the capacity, we have the will and we have passion to
secure our future and we will emerge stronger, together," Prime
Minister Kamla Persad Bissessar told business leaders at a meeting
on Jan. 15, 2015, according to Caribbean360.com.
Oil prices have dropped significantly from a high of US$104 a
barrel in June to less than US$50 a barrel 2 weeks ago.
The report notes that the government has said that the island has
lost approximately $TT7.5 billion as a result of the oil price
situation and Prime Minister in an address to the nation outlined
measures which she said her administration would take to lessen
the impact on the local economy.
But it has already promised there would be no job cuts or cuts in
social programs, the report discloses.
The report notes that a government statement issued after the
talks said the prime minister held an "important conversation with
the business community" and that "representatives endorsed the
approach taken in dealing with the current environment, and
expressed their commitment to working with the Government on
projects and initiatives to further expand the economy."
The report relays that the statement quoted Prime Minister Persad
Bissessar as assuring "business people that she would ensure that
the present challenges are managed in a way that places people and
country first, and also a strong focus on preserving the economic
and social stability.
"She noted that the Government's first approach includes review of
our PSIP (Public Sector Investment Program) and recurrent
expenditure with the aim of identifying savings of approximately
TT$4.5 billion (One TT dollar=US$0.16 cents)," the statement said.
Prime Minister Bissessar said that further savings would be
"derived from a lower oil price generating a lower demand on
Government for the petroleum subsidy, adjusted possibly to TT$1.7
billion," the report notes.
"With the best made plans, accelerating development, increased
growth and stability, it is the people we depend on to make it
happen. Sectors cannot expand, the economy cannot grow, the
future cannot be secured unless the policies we implement and the
vision we pursue place the people as the drivers of progress," the
statement quoted Prime Minister Bissessar as saying.
The statement said "business people endorsed the statements made
by Prime Minister Persad Bissessar and welcomed the thrust to
engage the private sector in Public-Private Partnerships" and that
the business representatives had identified "two issues that are
critical to their operations - shortage of labor and foreign
exchange," the report notes.
The statement said that the Ministers of Finance and the Minister
of Trade, Industry and Commerce were mandated to meet as a matter
of urgency to develop a sustainable plan to manage foreign
exchange supply, the report adds.
TRINIDAD & TOBAGO: Energy Market Changes Represent Challenge
------------------------------------------------------------
An International Monetary Fund mission, headed by Mr. Elie
Canetti, visited Trinidad and Tobago from January 19 - 26, 2015
for a regular staff visit. Mr. Canetti issued the following
statement in Port of Spain at the conclusion of the mission:
"The recent changes in the energy markets represent a major
economic challenge for Trinidad & Tobago, whose exports are
heavily linked to these markets. Although it is difficult to know
where the markets will settle, the drivers of energy price
declines appear likely to endure. Therefore, we support the
government's prudent decision to prepare revised budget plans
based on conservative price assumptions.
"The case for policy tightening remains intact as the economy
seems to be close to, if not beyond, full capacity. For that
reason, we agree with the authorities' goal of returning to the
original 2014/15 target of a fiscal deficit of 2.3 percent, which,
barring the emergence of further downside risks, appears feasible.
Over the medium term, the fiscal recommendations from the IMF's
latest annual report on the Trinidad and Tobago economy remain
critical to achieving long-term goals of diversification, and
saving and investing for the future. We reiterate our advice to
scale down fuel subsidies, and note that the fall in global energy
prices provides a unique opportunity to do this.
"Recent moves to tighten monetary policy appear appropriate.
Shortages of foreign exchange remain a critical headwind for the
economy, with businesses continuing to report severe difficulties
in paying suppliers. We are encouraged, therefore, by the central
bank's intention to increase the size and frequency of foreign
exchange injections until the backlog of orders is eliminated. It
will be essential to continue to meet foreign exchange demands in
a timely manner in order to restore the market's confidence.
"There has been progress on the structural reform front. Data
provision by the Central Statistical Office (CSO) has materially
improved, but still falls short of acceptable standards. Therefore
it will be important that the pace of CSO improvements is
sustained, and we encourage the government to press ahead with its
plans to put the CSO on an independent and well-funded footing
within 18 months. There has also been further progress on
financial reforms, while improvements in easing the costs of doing
business have indeed been impressive. Procurement legislation has
also been passed and, once implemented, should help to improve
expenditure efficiency and allay concerns regarding corruption.
However, improving the functioning of the civil service and
reducing the distortions to the labor market caused by government
temporary employment programs remain critical priorities.
"We look forward to continued discussions with the authorities,
notably the 2015 Article IV consultation, which will be scheduled
for later in 2015."
***********
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.
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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 2015. 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.
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