/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150205.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, February 5, 2015, Vol. 16, No. 025 Headlines A R G E N T I N A YPF S.A.: Fitch Assigns 'CCC' Rating on Reopening of USD750M Notes B R A Z I L PETROLEO BRASILEIRO: Shares Up in Brazil on Rumors of CEO's firing C A Y M A N I S L A N D S BANCO PRIVADO: Court Enters Wind-Up Order BLACKHORSE EMERGING: Commences Liquidation Proceedings CORDON INTERNATIONAL: Placed Under Voluntary Wind-Up COY KOI: Placed Under Voluntary Wind-Up CRIS82 LIMITED: Members Receive Wind-Up Report EOS INTERNATIONAL: Commences Liquidation Proceedings F4O4 HOLDING: Placed Under Voluntary Wind-Up FANTASTIC HOLDINGS: Members Receive Wind-Up Report FIVE STARS: Commences Liquidation Proceedings HESS (INDONESIA-IV): Commences Liquidation Proceedings INCENTIVE FUNDS: Placed Under Voluntary Wind-Up KS HOLDINGS II: Placed Under Voluntary Wind-Up MALCOLM MILLER: Placed Under Voluntary Wind-Up RASA LAND: Placed Under Voluntary Wind-Up RASSELAS LIMITED: Placed Under Voluntary Wind-Up SHINING NOVA II: Placed Under Voluntary Wind-Up SHINING NOVA III: Placed Under Voluntary Wind-Up SHINING NOVA 5: Placed Under Voluntary Wind-Up SHINSAIBASHI HOLDING: Placed Under Voluntary Wind-Up SHIRE OCEANIC: Placed Under Voluntary Wind-Up D O M I N I C A N R E P U B L I C DOMINICAN REP: 'Panama Blight' Can Wreak Havoc on Bananas DOMINICAN REP: Electric Pact Should Center on Consumers, ADIE Says M E X I C O CREDITO REAL: S&P Raises Rating to 'BB+'; Outlook Stable DOCUFORMAS: S&P Affirms 'B+' Rating; Outlook Remains Stable FINANCIERA INDEPENDENCIA: Affirms 'B+' Global Scale ICR MEXICO: Oil Prices to Stay Low for Years, Bank of Mexico Says P U E R T O R I C O PUERTO RICO: Aims to Insure $500MM of $2 Billion Bond Deal T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Incurs US$60 Million Loss in 2014 TRINIDAD CEMENT: OWTU Warns of Possible Buyout - - - - - ================= A R G E N T I N A ================= YPF S.A.: Fitch Assigns 'CCC' Rating on Reopening of USD750M Notes ------------------------------------------------------------------ Fitch Ratings rates YPF S.A.'s (YPF) reopening of the company's 2018 and 2024 notes by up to USD750 million 'CCC'. The company's rated notes with maturity dates of December 2018 and April 2024 notes total, before the reopening, USD587 million and USD1 billion respectively. The 2024 notes have a 10-year maturity with amortizations in years eight (30%), nine (30%) and 10 (40%). The 2018 notes have a bullet maturity. The proceeds from the reopening will be used to fund fixed asset investments in Argentina and working capital requirements. The notes rank at least pari passu in priority of payment with all other YPF senior unsecured debt, and are rated the same as all senior unsecured obligations of YPF. KEY RATING DRIVERS YPF's ratings reflect its strong linkage with the credit quality of the Republic of Argentina (Fitch local and foreign currency Issuer Default Ratings [IDRs] of 'RD' and a country ceiling of 'CCC') and the company's relatively low reserve life. LINKAGE TO SOVEREIGN: YPF's ratings reflect the close linkage with the Republic of Argentina resulting from the company's ownership structure as well as recent government interventions. The Republic of Argentina controls the company through its 51% participation after it nationalized the company on April 2012. Following this action, the company's strategy and business decisions are governed by the Republic of Argentina. LOW HYDROCARBON RESERVE LIFE: The ratings consider the company's relatively weak operating metrics characterized by low reserve life and historically declining production levels. As of year-end 2013, YPF reported proved reserves of 1,083 million barrels of oil equivalent (boe) and average production of 493,400 boe per day. This translates into a below-optimal level reserve life of approximately six years. This factor could create significant operational challenges in the medium to long term. IMPROVING PRODUCTION: The company's average production in 2013 was up nearly 2% year-over-year, and this improving trend has continued in 2014. Production in the third quarter of 2014 averaged 573,000 boe per day, which is 16% higher than 2013 figures. Both crude oil and natural gas production have steadily grown on a quarterly basis helped in large part by the steady growth in tight gas and shale oil production. After only two years, the Loma Campana shale oil field is the second largest producing field in Argentina with gross production increasing from 7,900 boe/day in 1Q13 to 31,900 boe/day in 3Q'14. STRONG BUSINESS POSITION: YPF benefits from a strong business position supported by its vertically integrated operations and dominant market presence in the Argentine hydrocarbons' market. Fitch anticipates that YPF will continue to exercise an active role in domestic fuel and gas supply. In addition, Fitch expects the company to continue to solidify its market leadership in Argentina and also increase its proved reserves via small to medium-sized acquisitions such as the this year's purchase of Apache Argentina which added 135 million boe in proved reserves. This acquisition increased the company's proved reserves by 12%. ADEQUATE CREDIT PROTECTION METRICS: YPF has relatively solid credit protection metrics, characterized by moderate leverage and a manageable debt amortization schedule. Total cash and equivalents amounted to approximately USD1.9 billion as of Sept. 30, 2014, which covers the company's debt maturities for the next 18 months. As of the last 12 months (LTM) Sept. 30, 2014 period, total financial leverage, as measured by total debt-to- EBITDA, reached 1.1x, which is considered low for the assigned rating. As of year-end 2013, YPF's total debt-to-total proved reserves ratio was average at USD4.5 per boe. Total debt as of third quarter of 2014 amounted to approximately USD5.8 billion, of which approximately USD1.5 billion was short- term. EBITDA for LTM September 2014 was approximately USD5.1 billion, which is up 25% on a year-on-year basis. During recent years, the company's leverage has been moderately increasing, mostly as a result of increases in debt. Fitch expects leverage to increase above 1.5x in the near to medium term given YPF's ambitious 2013-2017 USD28-USD30 billion capex program. Incorporating the maximum bond reopening of USD750 million, the company's LTM September 2014 leverage ratio would rise to 1.3x on a pro forma basis. RATING SENSITIVITIES YPF's ratings could be negatively affected by a combination of the following: a downgrade of the Republic of Argentina's ratings; a significant deterioration of credit metrics; and/or the adoption of adverse public policies that can affect the company's business performance in any of its business segments. A positive rating action in the short to medium term is considered unlikely given the linkage with sovereign credit quality, and Argentina's current sovereign restricted default rating. =========== B R A Z I L =========== PETROLEO BRASILEIRO: Shares Up in Brazil on Rumors of CEO's firing ------------------------------------------------------------------ EFE News reports that stocks of Petroleo Brasileiro S.A., Brazil's scandal-ridden state oil company, soared Feb. 3 on the Sao Paulo exchange amid rumors that Chief Executive Maria das Gracas Foster will be soon replaced. The company's preferential shares were up 12.59 percent at 3:30 p.m., while Petrobras ordinary shares rose 11.79 percent, spurring a 2.67 percent rise in the benchmark Ibovespa index, EFE's Feb. report notes. 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 ========================== BANCO PRIVADO: Court Enters Wind-Up Order ----------------------------------------- On July 9, 2010, the Grand Court of Cayman Islands entered an order to wind up the operations of Banco Privado Portugues (Cayman) Ltd. David A.K. Walker -- david.walker@ky.pwc.com -- Ian D. Stokoe -- ian.stokoe@ky.pwc.com -- and Simon Conway -- simon.r.conway@ky.pwc.com -- of PwC Corporate Finance & Recovery (Cayman) Limited were appointed as the company's liquidators. BLACKHORSE EMERGING: Commences Liquidation Proceedings ------------------------------------------------------ On Dec. 2, 2014, the sole shareholder of The Blackhorse Emerging Enterprises (US) Fund 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: John Francis Engle 9R Barker Road, 307493 Singapore CORDON INTERNATIONAL: Placed Under Voluntary Wind-Up ---------------------------------------------------- At an extraordinary general meeting held on Nov. 20, 2014, the shareholders of Cordon International Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 15, 2015, will be included in the company's dividend distribution. The company's liquidators are: Sarah Baudet Paula Hegarty Citron 2004 Limited Telephone: + 44 1534 282276 Facsimile: + 44 1534 282400 Clifton House, 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands COY KOI: Placed Under Voluntary Wind-Up --------------------------------------- On Nov. 14, 2014, the sole member of Coy Koi Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 5, 2015, will be included in the company's dividend distribution. The company's liquidator is: Richard Fear Telephone: (345) 814 7759 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman Ky1-1111 Cayman Islands CRIS82 LIMITED: Members Receive Wind-Up Report ---------------------------------------------- The members of CRIS82 Limited received on Dec. 23, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170 George Town, Grand Cayman Cayman Islands KY1-1102 EOS INTERNATIONAL: Commences Liquidation Proceedings ---------------------------------------------------- At an extraordinary general meeting held on Nov. 25, 2014, the shareholders of EOS International resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 14, 2015, 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 Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 F4O4 HOLDING: Placed Under Voluntary Wind-Up -------------------------------------------- On Nov. 25, 2014, the sole member of F4O4 Holding resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 5, 2015, will be included in the company's dividend distribution. The company's liquidator is: Richard Fear c/o Ryan Charles Telephone: (345) 814 7364 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands FANTASTIC HOLDINGS: Members Receive Wind-Up Report -------------------------------------------------- The members of Fantastic Holdings Limited received on Dec. 23, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170 George Town, Grand Cayman Cayman Islands KY1-1102 FIVE STARS: Commences Liquidation Proceedings --------------------------------------------- On Dec. 1, 2014, the sole member of Five Stars Fortune Investment resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 27, 2015, will be included in the company's dividend distribution. The company's liquidator is: Lion International Management Limited Craigmuir Chambers P.O. Box 71 Road Town Tortola VG 1110 British Virgin Islands HESS (INDONESIA-IV): Commences Liquidation Proceedings ------------------------------------------------------ Hess (Indonesia-IV) Limited has commenced liquidation proceedings and only creditors who were able to file their proofs of debt by Jan. 15, 2015, will be included in the company's dividend distribution. The company's liquidator is: Mr. George C. Barry 1185 Avenues of the Americas New York, N.Y. 10036 United States of America HSBC International Trustee Limited Compass Point 9 Bermudiana Road Hamilton HM 11 Bermuda Telephone: (441) 299-6482 Facsimile: (441) 299-6526 INCENTIVE FUNDS: Placed Under Voluntary Wind-Up ----------------------------------------------- On Nov. 17, 2014, the sole shareholder of Incentive Funds (Cayman) SPC resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Avalon Ltd. Reference: GL Telephone: (+1) 345 769 4422 Facsimile: (+1) 345 769 9351 Landmark Square 1st Floor, 64 Earth Close P.O. Box 715, George Town Grand Cayman KY1-1107 Cayman Islands KS HOLDINGS II: Placed Under Voluntary Wind-Up ---------------------------------------------- On Nov. 25, 2014, the sole member of KS Holdings II resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 5, 2015, will be included in the company's dividend distribution. The company's liquidator is: Richard Fear c/o Ryan Charles Telephone: (345) 814 7364 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands MALCOLM MILLER: Placed Under Voluntary Wind-Up ---------------------------------------------- On Nov. 14, 2014, the sole member of Malcolm Miller Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 5, 2015, will be included in the company's dividend distribution. The company's liquidator is: Richard Fear Telephone: (345) 814 7759 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman Ky1-1111 Cayman Islands RASA LAND: Placed Under Voluntary Wind-Up ----------------------------------------- On Nov. 21, 2014, the sole member of Rasa Land Development Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 5, 2015, will be included in the company's dividend distribution. The company's liquidator is: Richard Fear c/o Ryan Charles Telephone: (345) 814 7364 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands RASSELAS LIMITED: Placed Under Voluntary Wind-Up ------------------------------------------------ On Nov. 14, 2014, the sole member of Rasselas Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 5, 2015, will be included in the company's dividend distribution. The company's liquidator is: Richard Fear Telephone: (345) 814 7759 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman Ky1-1111 Cayman Islands SHINING NOVA II: Placed Under Voluntary Wind-Up ----------------------------------------------- On Nov. 25, 2014, the sole member of Shining Nova II Holding resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 5, 2015, will be included in the company's dividend distribution. The company's liquidator is: Richard Fear c/o Ryan Charles Telephone: (345) 814 7364 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands SHINING NOVA III: Placed Under Voluntary Wind-Up ------------------------------------------------ On Nov. 25, 2014, the sole member of Shining Nova III Holding resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 5, 2015, will be included in the company's dividend distribution. The company's liquidator is: Richard Fear c/o Ryan Charles Telephone: (345) 814 7364 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands SHINING NOVA 5: Placed Under Voluntary Wind-Up ---------------------------------------------- On Nov. 25, 2014, the sole member of Shining Nova 5 Holding resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 5, 2015, will be included in the company's dividend distribution. The company's liquidator is: Richard Fear c/o Ryan Charles Telephone: (345) 814 7364 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands SHINSAIBASHI HOLDING: Placed Under Voluntary Wind-Up ---------------------------------------------------- On Nov. 25, 2014, the sole member of Shinsaibashi Holding resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 5, 2015, will be included in the company's dividend distribution. The company's liquidator is: Richard Fear c/o Ryan Charles Telephone: (345) 814 7364 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands SHIRE OCEANIC: Placed Under Voluntary Wind-Up --------------------------------------------- On Nov. 20, 2014, the sole shareholder of Shire Oceanic, Ltd resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 5, 2015, will be included in the company's dividend distribution. The company's liquidator is: Ignazio Ipriani 110 East 42nd Street New York NY 10017 U.S.A. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REP: 'Panama Blight' Can Wreak Havoc on Bananas --------------------------------------------------------- Dominican Today reports that Dominican Exporters Association (ADOEXPO) President Sadala Khoury warned that the "Panama blight" is wreaking havoc on banana plantations in several countries and asked the authorities to take steps to prevent damages to one of the country's main export products. President Khoury said income from bananas is more than US$200 million annually, and the main livelihood for thousands of families in southwestern and northeastern regions, and provides thousands of indirect jobs at harvest, according to Dominican Today. The report notes that President Khoury said the government should take serious steps to deal with the dangerous pest that damages plantations at their root, "because we already had the experience of coffee rust, which greatly reduced exports of that product." In an emailed statement, the business leader said to prevent is always cheaper than to fix, the report notes. "We must invest the necessary resources to preserve our exports in this important sector," the report quoted President Khoury as saying. President Khoury said the Panama blight is a fungus that attacks the roots of some banana varieties and its resistance to fungicides has made it the most dangerous plague in history of that crop, the report notes. The blight is present in Indonesia, China, Taiwan, Malaysia, the Philippines, Australia and Africa, while Dominican Republic's high temperature and humidity makes infestation possible, "since they're conducive to the plants' rapid growth they also spread the disease," the report adds. DOMINICAN REP: Electric Pact Should Center on Consumers, ADIE Says ------------------------------------------------------------------ Dominican Today reports that Dominican Republic's power companies (ADIE) said the proposed Electricity Pact should center on service to consumers and be the "overseer" to ensure compliance with the agreed measures and projects. ADIE Executive Vice President Milton Morrison said if the user doesn't receive 24-7 quality and competitively-priced service, "it makes no sense sitting down to talk," according to Dominican Today. "Once reached the agreements are considered essential to create spaces for oversight to give the assurance that what is agreed can be fulfilled and not just left in a bunch of papers," the report quoted Mr. Morrison as saying. Mr. Morrison listed ADIE's four most important points, of the more than 20 discussed leading to the Electricity Pact, the report notes. "First, supply 100 percent of demand, giving consumers 24 hours of electricity," the report quoted Mr. Morrison as saying. "A second step would be to expand the energy matrix based on a least-cost generation plan, transmission and distribution, which means looking onward toward the long-term needs and allow it to reach the kind of competitive generation in terms of price and technology, based on studies," Mr. Morrison said, the report notes. The report relates that Mr. Morrison said the 33% average energy losses in distribution and marketing must be lowered and "reduce and optimize" the Board of Directors and implement models from other entities he affirms have been effective. "It's been shown that between 95% and 96% of those who get a light bill pay. It's true that the light bill in this country isn't paid, the problem is the distributor's (EDES) inability to install the meter and bill the customer," Mr. Morrison said, adding that ADIE's fourth proposal "involve people," making responsible and active consumers. "If we go into a discussion of interests, we will not find results," the report says. =========== M E X I C O =========== CREDITO REAL: S&P Raises Rating to 'BB+'; Outlook Stable -------------------------------------------------------- Standard & Poor's Ratings Services raised its global scale ratings on Credito Real S.A.B. de C.V. SOFOM, E.R. (Credito Real) to 'BB+' from 'BB' and national scale counterparty credit and debt ratings to 'mxA+/mxA-1' from 'mxA/mxA-2'. S&P also raised the rating on the company's $425 million five-year senior unsecured notes to 'BB+' from 'BB'. The outlook is stable. S&P's ratings on Credito Real reflect its "adequate" business position, "strong" capital and earnings, "moderate" risk position, and "adequate" funding and liquidity. The stand-alone credit profile (SACP) is 'bb+'. "Our 'BB+' rating on the company's $425 million senior unsecured notes is at the same level as the issuer credit rating, and incorporates that as of Sept. 30, 2014, the firm's secured debt represented less than 30% of adjusted assets, and unencumbered assets completely covered unsecured debt," said Standard & Poor's credit analyst Barbara Carreon. "We initially set the anchor for NBFIs three notches below the anchor for banks in the same country to reflect the typical lack of access to the central bank's credit lines, lower regulatory oversight, and higher competitive risk for these entities than for banks. We may modify that standard three-notch adjustment for NBFIs in countries or in sectors where these differences do not exist or are less pronounced (i.e. the finance company can access funding from the central bank, is regulated to some degree, or has unique competitive positions, such as monopolistic or oligopolistic businesses). In Mexico, the NBFI anchor is only two notches below that for the bank anchor, reflecting the National Banking and Securities Commission's oversight of some of them, and that there is a good track record of government support through guarantees and liquidity during periods of market turmoil. In addition, some NBFIs have funding lines from government-owned banks, which we consider as extremely stable," S&P said. DOCUFORMAS: S&P Affirms 'B+' Rating; Outlook Remains Stable ----------------------------------------------------------- As previously announced, On Feb. 3, 2015, Standard & Poor's Ratings Services affirmed its 'B+' global scale and 'mxBBB/mxA-3' Mexican national scale ratings on Docuformas S.A.P.I. de C.V. The outlook remains stable. S&P's ratings on Docuformas reflect S&P's "adequate" assessments for its business position and capital and earnings, its "weak" risk position, and S&P's view of its "adequate" funding and "moderate" liquidity. The stand-alone credit profile (SACP) is 'b+'. S&P initially sets the anchor for NBFIs three notches below the anchor for banks in the same country to reflect the typical lack of access to the central bank's credit lines, lower regulatory oversight, and higher competitive risk for these entities than for banks. S&P may modify that standard three-notch adjustment for NBFIs in countries or in sectors where these differences do not exist or are less pronounced (i.e. the finance company can access funding from the central bank, is regulated to some degree, or has unique competitive positions, such as monopolistic or oligopolistic businesses). In Mexico, the NBFI anchor is only two notches below that for the bank anchor, reflecting the National Banking and Securities Commission's oversight of some of them, and that there is a good track record of government support through guarantees and liquidity during periods of market turmoil. In addition, some NBFIs have funding lines from government-owned banks, which S&P considers as extremely stable. FINANCIERA INDEPENDENCIA: Affirms 'B+' Global Scale ICR ------------------------------------------------------- Standard & Poor's Ratings Services said it reviewed its ratings on six finance companies and one financial market infrastructure (FMI) company in Mexico by applying its new criteria for rating nonbank financial institutions (NBFIs), published on Dec. 9, 2014. NBFI finance companies are firms that are typically not registered as banks and non-depository financial institutions that make loans to individuals or businesses. Their greatest risks relate to asset quality, funding and liquidity, and tangible capital. On the other hand, S&P views FMI companies as specialized entities within the financial institutions industry, and they include exchanges, clearinghouses, central securities depositories (CSDs), and payment networks. S&P rates NBFI finance companies under a similar framework to S&P's bank criteria. S&P uses an anchor--a starting point for all ratings in a given country--and then rate each NBFI higher, lower, or equal to the anchor depending on S&P's assessment of its business position; capital, leverage, and earnings; risk position; and funding and liquidity. S&P also considers whether a company may receive extraordinary support from a government or parent entity. S&P's nonbank finance company anchor reflects its view of the sector's economic and industry risks. S&P initially sets the anchor for NBFIs three notches below the anchor for banks in the same country to reflect the typical lack of access to the central bank's credit lines, lower regulatory oversight, and higher competitive risk for these entities than for banks. S&P may modify that standard three-notch adjustment for NBFIs in countries or in sectors where these differences do not exist or are less pronounced (i.e. the finance company can access funding from the central bank, is regulated to some degree, or has unique competitive positions, such as monopolistic or oligopolistic businesses). In Mexico, the bb+ NBFI anchor is only two notches below that for the bank anchor, reflecting the National Banking and Securities Commission's oversight of some of them, and that there is a good track record of government support through guarantees and liquidity during periods of market turmoil. In addition, some NBFIs have funding lines from government-owned banks, which S&P considers as extremely stable. FMI companies are different from other financial institutions in that they have characteristics similar to corporate companies. S&P's financial analysis of FMI companies focuses on the trend and fluctuations of operating cash flows as a source for repaying debt. The foundation for determining FMI ratings is S&P's "Corporate Methodology," (published Nov. 19, 2013) and S&P adapts the methodology to incorporate in its analysis the unique business activities, regulations, and risks of the FMI industry. To determine the stand-alone credit profile (SACP), the starting point in assigning an issuer credit rating (ICR), on an FMI company, S&P first combines its industry risk and country risk assessments to determine a Corporate Industry and Country Risk Assessment (CICRA). S&P combines the CICRA and the entity's competitive position to arrive at our business risk profile assessment. S&P next assess the institution's cash flow and debt leverage metrics to determine the FMI company's financial risk profile. S&P combines the business and financial risk profiles to determine the entity's preliminary anchor. S&P then assess clearing and settlement (C&S) risk. This final assessment represents the key difference between our FMI rating framework and S&P's corporate methodology. Additional rating factors can add to or subtract from the anchor, such as: diversification/portfolio effect, capital structure, financial policy, liquidity, and management and governance. As with S&P's corporate methodology, a comparable ratings analysis is the last analytical factor under S&P's criteria to determine an FMI company's SACP. RATINGS LIST Ratings Affirmed Financiera Independencia S.A.B. de C.V. SOFOM E.N.R. Issuer Credit Rating Global Scale Rating B+/Positive/-- CaVal (Mexico) National Scale mxBBB/Positive/mxA-3 Senior Unsecured B+ Instituto del Fondo Nacional de la Vivienda para los Trabajadores (Infonavit) Issuer Credit Rating Foreign Currency BBB+/Stable/A-2 Local Currency A-/Stable/A-2 CaVal (Mexico) National Scale mxAAA/Stable/mxA-1+ Financiera Finca S.A. de C.V. SOFOM E.N.R. Issuer Credit Rating Global Scale Rating BB-/Stable/B CaVal (Mexico) National Scale mxBBB+/Stable/mxA-2 Docuformas S.A.P.I. de C.V. Issuer Credit Rating Global Scale Rating B+/Stable/-- CaVal (Mexico) National Scale mxBBB/Stable/mxA-3 Unifin Financiera, S.A.P.I. de C.V. SOFOM, E.N.R. Issuer Credit Rating Global Scale Rating BB-/Stable/-- CaVal (Mexico) National Scale mxA-/Stable/mxA-2 Senior Unsecured BB- Asigna Compensacion y Liquidacion Issuer Credit Rating Global Scale Rating A-/Stable/A-2 CaVal (Mexico) National Scale mxAAA/Stable/mxA-1+ Upgraded Credito Real S.A.B. de C.V. SOFOM, E.R. Issuer Credit Rating To From Global Scale Rating BB+/Stable/-- BB/Stable/-- CaVal (Mexico) National Scale mxA+/Stable/mxA-1 mxA/Stable/mxA-2 Senior Unsecured Global Scale BB+ BB CaVal (Mexico) National Scale mxA+ mxA Commercial Paper CaVal (Mexico) National Scale mxA-1 mxA-2 MEXICO: Oil Prices to Stay Low for Years, Bank of Mexico Says ------------------------------------------------------------- EFE News reports that low petroleum prices will be around for "years, not months," and Mexico will have to adjust to lower revenues from the oil industry for a longer period of time, Bank of Mexico Gov. Agustin Carstens said. "We had gotten used to spending with revenues from an oil price of between $80 and $100 per barrel" in Mexico, Mr. Carstens said during a meeting with legislators from the conservative National Action Party, or PAN, according to EFE News. ====================== P U E R T O R I C O ====================== PUERTO RICO: Aims to Insure $500MM of $2 Billion Bond Deal ---------------------------------------------------------- Reuters reports that Puerto Rico is negotiating with at least two bond insurers to insure around $500 million of a planned $2 billion bond issue, which would extend the appeal of the sale beyond the hedge funds currently buying the U.S. commonwealth's debt, according to two sources close to the process. The island's Government Development Bank (GDB) is in talks with MBIA's National Public Finance Guarantee Corp and Assured Guaranty, the sources said, according to Reuters. The insurers already have substantial exposure to Puerto Rico's debt and may be trying to protect their exposure in other areas by helping Puerto Rico raise more money, the sources said, the report notes. The insured part of the deal would have a coupon of 5 percent, according to the sources, the report relates. Assured Guaranty did not respond to a request for comment. MBIA declined to comment. "The insurance companies don't want to do it but they are being leveraged into doing so because of their exposure to Puerto Rico Electric Power Authority (PREPA)," said a Washington, DC-based lobbyist who has worked for the Puerto Rico government and investment groups, the report says. Reuters discloses that Puerto Rico badly needs the bond sale to stabilize its finances. The GDB's liquidity fell to $1.09 billion at the end of last year, a sharp drop from the $1.6 billion reported in November, the report notes. The GDB, the financing arm of the commonwealth, did not immediately comment. GDB President Melba Acosta-Febo said in November that the bank had held discussions with four bond insurers about insuring part of the deal but did not specify the amount, the report relays. Acosta-Febo did not name the insurance companies but said they had commented on legislation needed for the deal. The GDB said earlier that it discussed the legislation with Assured Guaranty, Ambac Financial Group Inc, National Public Finance Guarantee Corp and FGIC Corp, the report notes. "Obviously, they don't want to be involved, but they have to because one firm has about $1.4 billion exposure to PREPA, while the other has about $1 billion in exposure to PREPA. They also have exposure to the Highways & Transportation Authority," added a New York-based financial executive close to the process, the report notes. The report adds that while Puerto Rico planned to raise up to $2.9 billion in March, it may be able to raise only $2 billion because a petroleum tax increase backing the deal was not indexed for inflation and will be able to provide coverage for only about $2 billion, government officials and lawmakers have said. ================================ T R I N I D A D & T O B A G O ================================ CARIBBEAN AIRLINES: Incurs US$60 Million Loss in 2014 ----------------------------------------------------- Ria Taitt at Trinidad Express reports that state-owned Caribbean Airlines Limited is estimated to have lost US$60 million for the year 2014 (TT$383 million), Finance Minister Larry Howai said. In a response to a question from PNM Senator Lester Henry, Minister Howai said the accounts for fiscal year ending December 31, 2014 were not yet completed, according to Trinidad Express. The report notes that Minister Howai said the figure took into consideration the grant of US$38 million made by Government during 2014 which was recorded as equity. However, Minister Howai said the unaudited accounts showed a loss of US$60 million, the report relays. Minister Howai said the company had developed a strategy plan which envisaged it breaking even by 2017, the report discloses. Minister Howai said the transformation of CAL would take three to four years following a consistent company strategy to achieve identified objectives with major milestones targeted during this period, the report relays. Minister Howai said this strategy plan was recently developed and completed towards the end of last year, the report says. Asked by PNM Senator Stuart Young whether this US$38 million was the only grant or injection into CAL in the last year, Minister Howai said this was the only one he was seeing on the accounts, the report discloses. Minister Howai said there was no injection of over TT$1 billion into the State-owned airline last year, in response to a question in the Senate, the report adds. About Caribbean Airlines Caribbean Airlines Limited -- http://www.caribbean-airlines.com/ -- provides passenger airline services in the Caribbean, South America, and North America. The company also offers freighter services for perishables, fish and seafood, live animals, human remains, and dangerous goods. In addition, it operates a duty free store in Trinidad. Caribbean Airlines Limited was founded in 2006 and is based in Piarco, Trinidad and Tobago. As reported in the Troubled Company Reporter-Latin America on July 11, 2014, Trinidad and Tobago Newsday said that Caribbean Airlines is facing another loss. However, Finance Minister Larry Howai is hopeful the loss could be narrowed down to less than TT$100 million, according to Trinidad and Tobago Newsday. Mr. Howai noted the airline industry is not the easiest and many airlines have gone bankrupt at some point. Citing Caribbean360.com, the TCRLA on May 20, 2013, said Minister Howai said Caribbean Airlines Limited recorded losses estimated at US$70 million in 2012. In 2011, CAL had recorded losses of US43.7 million. TRINIDAD CEMENT: OWTU Warns of Possible Buyout ---------------------------------------------- Richardson Dhalai at Trinidad and Tobago Newsday reports that the Oilfields Workers Trade Union (OWTU), has once again signaled its intention to contest any possible buyout or takeover of Trinidad Cement Limited (TCL), should the rules governing the "ceiling" amount of shares which could be owned by individuals or organizations be changed to allow a majority shareholding by a single entity. In a media statement, the OWTU noted that while it was supportive of a restructuring of TCL's operations to increase its profitability, stated that it was opposed to a repeal of any restriction on the number of shares which would be held by a single entity such as Mexican cement giant, Cemex Limited, according to Trinidad and Tobago Newsday. "The OWTU has also been calling for the restructuring of TCL in order to improve the operations of the Company and therefore increase its profitability," the union said, the report notes. However, the OWTU was very clear in terms of any attempt to takeover the company by any one entity, in particular, CEMEX, The OWTU stated, and recalled that this position was consistent with its position in 2002 when CEMEX was attempting to take over TCL and the union had led a campaign to ensure that TCL had remained in local ownership, the report relates. At that time, the union OWTU's President General was Errol McLeod, who is currently Labour Minister in the People's Partnership Government, the report discloses. The union's current president general is Ancel Roget. "We believe that any takeover of TCL by any foreign company is inimical to the interests of the TCL workers, the company, the country and the nation as a whole. We will do everything possible to prevent the loss of such a valuable national company to a multinational giant such as CEMEX or any other company," the union declared, the report notes. "The OWTU therefore vehemently oppose repealing Article Five of the Articles of Continuance which will remove the 20 percent ceiling on the number of shares owned by single individual or corporation. If this restriction is lifted by repealing Article Five it would enable one entity to gain majority control of TCL," the union added. The report relays that the OWTU noted that the TCL issue involved matters which were "beyond the shareholder value" saying if the economy was "to grow and be strengthened then there will be need to encourage strong, competitive companies that are locally owned and produce for both local and foreign export." The union noted that a "negative" precedent would then be set which would affect all local companies listed on the stock exchange should the stock restrictions be lifted, the report relays. "It will usher in an era where global companies will start buying out local companies which will have a serious adverse impact on our economy. We can wake up one morning and find that our economy and the majority of our national resources are in foreign hands. If such a situation occurs then it would be foreigners who will dictate the future of our country. Is that what we want for our country?" the union asked, the report relays. The report adds that the OWTU pointed out that TCL was a "good company" with the vast potential to be extremely profitable which was "strategically important" to Trinidad and Tobago. *********** 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 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. * * * End of Transmission * * *