/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150206.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, February 6, 2015, Vol. 16, No. 026 Headlines B E R M U D A HERA BOUTIQUE: To Close Doors Later This Month B R A Z I L ALUPAR INVESTIMENTOS: Moody's Withdraws Ba1 Corp. Family Rating CAMARGO CORREA: S&P Revises Outlook on 'BB' CCR to Negative INTERCEMENT BRASIL: S&P Revises Outlook on 'BB' CCR to Negative PETROLEO BRASILEIRO: Says Entire Top Management to be Replaced C A Y M A N I S L A N D S ALPHAHARVEST CAPITAL: Commences Liquidation Proceedings CSAG COMMODITY: Placed Under Voluntary Wind-Up EOS PARTNERS: Commences Liquidation Proceedings FALCON 973: Commences Liquidation Proceedings FIGLEAVES INVESTMENTS: Commences Liquidation Proceedings GIL INVESTMENT: Placed Under Voluntary Wind-Up IRONSHIELD SPECIAL: Placed Under Voluntary Wind-Up IRONSHIELD SPECIAL MASTER: Placed Under Voluntary Wind-Up LEUCHARS LIMITED: Placed Under Voluntary Wind-Up MALABRIGO INVESTMENT: Commences Liquidation Proceedings NEW CENTURY: Commences Liquidation Proceedings OPHIR PARTNERS: Commences Liquidation Proceedings ORCHARD I: Commences Liquidation Proceedings OYSTER MANAGEMENT: Placed Under Voluntary Wind-Up PRIMEPARTNERS ASIA: Placed Under Voluntary Wind-Up RISING SUN III: Placed Under Voluntary Wind-Up SBTC LIMITED: Placed Under Voluntary Wind-Up SHANTA FUND: Commences Liquidation Proceedings SHINING NOVA 4: Placed Under Voluntary Wind-Up UBIZ INVESTMENT: Commences Liquidation Proceedings C O S T A R I C A COSTA RICA: IMF Says Growth Momentum Slowing, 2015 Outlook Subdued M E X I C O FINANCIERA FINCA: S&P Affirms 'BB-/B' Rating; Outlook Stable FINANCIERA INDEPENDENCIA: S&P Affirms 'B+' Global Credit Rating MEXICO: Analysts Cut 2015 Economic Growth Estimate to 3.2 Percent UNIFIN FINANCIERA: S&P Affirms 'BB-' Rating on Sr. Unsec. Debt P U E R T O R I C O UNIVERSITY OF PUERTO RICO: S&P Affirms 'BB' SPUR; Outlook Neg. T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Central Bank Releases US$150 Million More TRINIDAD & TOBAGO: Chamber Concerned Over Government Shakeup - - - - - ============= B E R M U D A ============= HERA BOUTIQUE: To Close Doors Later This Month ---------------------------------------------- The Royal Gazette reports that Joan Cabral will close her Hera Boutique later this month. Explaining the decision to close the boutique, which she owns, Ms. Cabral said it was the result of a combination of factors, according to The Royal Gazette. "Firstly, I find myself in the position of needing to spend more time with an elderly parent due to changing circumstances at home," the report quoted Ms. Cabral as saying. "Secondly, the last year has been very difficult for retail sales overall. It has been a journey for the retail sector over the last four years as Bermuda has lost a significant portion of her population since 2010. There have been job losses and residents have seen their disposable income reduced," Ms. Cabral said, the report notes. The report relays that Ms. Cabral added: "If the last year had been better for my store, I would have been in a position to actually hire someone to fill in for me while I attend to home matters." The report notes that the boutique occupies a cozy corner in Old Cellar Lane, Walker Arcade, which leads off from Front Street. It opened in 2011 offering classic and stylish women's clothing for baby boomers and middle-aged women. Hera Boutique enjoyed some early success, but the extended, unfavorable economic climate presented a formidable headwind to the business, the report says. The report discloses that Ms. Cabral said it had been a risk opening the store during the downturn. "I thought things had turned the corner, but last year I noticed that things were not as good as the year before," the report quoted Ms. Cabral as saying. "It was noticeable that people did not have the disposable income that they used to have. There was a lot less spending. Last year was the toughest. If it hadn't been so hard I could have afforded to hire someone to continue running the shop." The report notes that Ms. Cabral also noted that the increasing trend to buy overseas, and particularly online, is hitting Bermuda's retailers hard, the report relays. Ms. Cabral said retailers would like to see residents offering more support to local business to help them stay viable, the report adds. =========== B R A Z I L =========== ALUPAR INVESTIMENTOS: Moody's Withdraws Ba1 Corp. Family Rating --------------------------------------------------------------- Moody's last rating action on Alupar Investimentos S.A. (Alupar) was on December 26, 2013 when Moody's affirmed Alupar's corporate family ratings of Ba1 on the global scale and Aa2.br on the Brazilian national scale. At the same time, Moody's affirmed the Ba2/Aa3.br ratings of Alupar's four-year BRL 17.8 million unsecured amortizing debentures which matured in December 2014. The outlook was stable for all ratings. The following ratings have been withdrawn: Corporate Family Ratings: Ba1/Aa2.br Ratings Rationale Moody's America Latina Ltda has withdrawn the above credit ratings for its own business reasons. Alupar is a holding company that participates in the capital of 20 transmission companies in Brazil and one in Chile, with total transmission lines of 5,703 km, of which 753 km are under construction and will be operating up to 2017. Alupar also holds interests in the hydro generation sector in Brazil with a total installed capacity of 347.4 MW as of December 31, 2014, which is projected to increase additional 84MW in February 2015 with the completion of the Ferreira Gomes hydro power project. The company is also engaged in the construction of two other minor hydro power projects consisting of 64 MW and 28 MW in Peru and Colombia, respectively, as also two PCHs in Brazil (Verde 08 with 30 MW and Agua Limpa 23 MW). Alupar is also working on the implementation of 5 wind farm projects with total installed capacity of 98.7 MW scheduled to start operating in January 2016. Alupar is controlled by Guarupart Participacoes Ltda. (unrated), a family-owned holding company with investments in in the electricity sector in Brazil and also in other Latin American countries. In the last twelve months ended September 30, 2014, Alupar reported consolidated net sales of BRL1,272 million (USD 556 million), which excludes BRL127 million (USD 55.51 million) infrastructure construction revenues, and net profit of BRL 316 million (USD 138 million) in accordance with the international accounting standards (IFRS). The principal methodology used in this rating was Regulated Electric and Gas Networks published in November 2014. 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". CAMARGO CORREA: S&P Revises Outlook on 'BB' CCR to Negative ----------------------------------------------------------- Standard & Poor's Rating Services revised its outlook on its 'BBB' global scale corporate credit rating on Construtora Norberto Odebrecht S.A. (CNO) to negative from stable. In addition, S&P affirmed this rating. At the same time, S&P revised its outlook on its 'BB' global scale corporate credit rating on Camargo Correa S.A. (CCSA) to negative from positive. S&P also affirmed this rating. At the same time, S&P affirmed its national scale 'brAAA' long- term corporate credit rating on CNO. The outlook on this rating remains stable. S&P also raised its national scale short-term corporate credit rating on CNO to 'brA-1+' from 'brA-1' following S&P's updated national scale criteria. S&P also lowered its national scale issue-level rating on CCSA to 'brAA-' from 'brAA', reflecting the outlook revision on global scale rating and weakening position in relation to the company's national scale rated peers. The negative outlook reflects potential downgrades of CNO and CCSA in light of the ongoing corruption investigations over allegations of overpriced contracts between the Brazilian E&C companies and Petroleo Brasileiro S.A. - Petrobras (BBB-/Stable/--), which could significantly raise contingent and reputational risks for the sector. Although the potential implications on those companies are still uncertain, they could be liable to fines and restrictions to bid on public-sector projects. However, as the investigation evolves, S&P perceives increasing scrutiny on these companies' business models, commercial capabilities, and corporate governance matters, which is turning refinancing efforts more challenging and costlier. Moreover, the weak Brazilian economy could restrict the ability to replenish backlog. The falling oil prices would also likely hurt future projects in Venezuela and Angola, countries where the companies have a large commercial exposure. As a result, in S&P's view, worsening operating conditions in the sector could impair refinancing activities and operating cash flow generation due to a lower contract base or potentially higher working capital swings due to delays in collection and claims process. S&P don't expect uniform ratings impact on CNO and CCSA. It would depend on the severity of the penalties on each company and their ability to manage reputational and refinancing risks, backlog diversification, reliance on public-sector contracts, liquidity, and debt level to absorb high-impact unanticipated cash outflows. S&P believes that CNO's exposure to the current contingent risks could hamper its ability to pass S&P's hypothetical stress test to be rated above the Brazilian sovereign foreign currency rating (BBB-/Stable/A-3), although the liability is currently highly unpredictable (if any). S&P expects the probable contraction of the E&C business for CCSA, along with lower prospects for its cement division-due to weaker infrastructure and real estate activities-to delay its debt reduction. The still high debt amount at the holding level also posts additional refinancing risks. INTERCEMENT BRASIL: S&P Revises Outlook on 'BB' CCR to Negative --------------------------------------------------------------- Standard & Poor's Rating Services revised its outlook on its 'BB' global scale corporate credit rating on InterCement Brasil S.A. (InterCement) to negative from positive. S&P also affirmed this rating. At the same time, S&P lowered its national scale corporate credit rating to 'brAA-' from 'brAA' to reflect the outlook revision on the global scale rating and weakening position in relation to InterCement's national scale rated peers. The rating outlook on the national scale rating is also negative. S&P's ratings on InterCement mirror the ratings on its parent company, Camargo Correa S.A. (CCSA), because S&P considers both entities as a single economic group bearing the same default risk. S&P also views InterCement and Cimpor as integrated companies. InterCement, the group's cement division, is CCSA's core subsidiary, in S&P's view. InterCement is one of the most profitable subsidiaries in the group, accounting for most of its cash flow generation. Although the degree of separation between CCSA and InterCement has been increasing following Cimpor's acquisition, S&P's analysis is based on the assumption that InterCement will remain CCSA's main cash generator, which will continue to exercise control over InterCement's main financial policies. In S&P's view, InterCement is CCSA's core investment due to its efficient operations and stable revenue stream. This equalizes the risk of default and ratings on CCSA and InterCement. PETROLEO BRASILEIRO: Says Entire Top Management to be Replaced -------------------------------------------------------------- EFE News reports that Petroleo Brasileiro S.A., which is mired in a massive corruption scandal, said that its entire senior management team will be replaced and that the names of the new directors could be announced in two days. "Petrobras confirms that its board of directors will meet Friday, Feb. 6 to choose the new management team following the resignation of the president (of the company) and five other senior directors," the oil giant said in a securities filing obtained by 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 ========================== ALPHAHARVEST CAPITAL: Commences Liquidation Proceedings ------------------------------------------------------- On Nov. 26, 2014, the shareholder of Alphaharvest Capital Partners, Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Abhinav Shukla 75 Rockefeller Plaza 27th Floor New York, NY, 10019 USA Telephone: +1 (345) 914 6365 CSAG COMMODITY: Placed Under Voluntary Wind-Up ---------------------------------------------- On Nov.21, 2014, the shareholders of CSAG Commodity Fund 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 liquidators are: Dwight Dube Michael Wheaton Telephone: (345) 640 5555 P.O. Box 31661 2nd Floor Regatta Office Park, Windward III Grand Cayman KY1-1207 Cayman Islands EOS PARTNERS: Commences Liquidation Proceedings ----------------------------------------------- At an extraordinary meeting held on Nov. 25, 2014, the members of EOS Partners (Offshore), L.P. 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 House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands FALCON 973: Commences Liquidation Proceedings --------------------------------------------- On Dec. 1, 2014, the sole shareholder of Falcon 973 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: Wesam Abdulaziz Mohamed Baqer Bahrain Islamic Bank B.S.C. (BisB) Al Salam Tower, 2nd Floor, Diplomatic Area P.O. Box 5240 Manama Bahrain FIGLEAVES INVESTMENTS: Commences Liquidation Proceedings -------------------------------------------------------- On Nov.28, 2014, the sole member of Figleaves Investments resolved to voluntarily liquidate the company's business. 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: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands GIL INVESTMENT: Placed Under Voluntary Wind-Up ---------------------------------------------- At an extraordinary meeting held on Nov. 18, 2014, the shareholders of Gil Investment Company Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Raymond E. Whittaker FCM LTD. Governor's Square Ground Floor, West Bay Road P.O. Box 1982 Grand Cayman KY-1104 Cayman Islands IRONSHIELD SPECIAL: Placed Under Voluntary Wind-Up -------------------------------------------------- On Dec. 5, 2014, the sole shareholder of Ironshield Special Situations G2 Fund 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: Ironshield Management (Cayman) Limited c/o Tim Cone Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 c/o Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands IRONSHIELD SPECIAL MASTER: Placed Under Voluntary Wind-Up --------------------------------------------------------- On Dec. 5, 2014, the sole shareholder of Ironshield Special Situations G2 Master Fund L.P. 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: Ironshield Management (Cayman) Limited c/o Tim Cone Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 c/o Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands LEUCHARS LIMITED: Placed Under Voluntary Wind-Up ------------------------------------------------ At an extraordinary general meeting held on Nov. 20, 2014, the shareholders of Leuchars Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 16, 2015, will be included in the company's dividend distribution. The company's liquidators are: Rakia Turner Carina Pires c/o Steering Group S.A. Telephone: + 44 1534 282276 Facsimile: + 44 1534 282400 13, Quai de I'lle, CH-1211 Geneva 11, Switzerland MALABRIGO INVESTMENT: Commences Liquidation Proceedings ------------------------------------------------------- On Nov.28, 2014, the sole member of Malabrigo Investment Company resolved to voluntarily liquidate the company's business. 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: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands NEW CENTURY: Commences Liquidation Proceedings ---------------------------------------------- On Nov.7, 2014, the members of New Century Fund Advisory resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 6, 2015, will be included in the company's dividend distribution. 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 OPHIR PARTNERS: Commences Liquidation Proceedings ------------------------------------------------- On Nov. 27, 2014, the shareholder of Ophir Partners International Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Ophir Partners, LLC 120 West 45th Street, Suite 3705 New York, NY 10036, USA Telephone: +1 (345) 914 6365 ORCHARD I: Commences Liquidation Proceedings -------------------------------------------- On Nov.27, 2014, the sole member of Orchard I, Inc. resolved to voluntarily liquidate the company's business. 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: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands OYSTER MANAGEMENT: Placed Under Voluntary Wind-Up ------------------------------------------------- On Dec. 1, 2014, the sole shareholder of Oyster Management Limited 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 Grand Cayman KY1-1107 Cayman Islands PRIMEPARTNERS ASIA: Placed Under Voluntary Wind-Up -------------------------------------------------- On Nov.27, 2014, the sole member of Primepartners Asia Merchant Capital Holdings 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 RISING SUN III: Placed Under Voluntary Wind-Up ---------------------------------------------- On Nov.25, 2014, the sole member of Rising Sun 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 SBTC LIMITED: Placed Under Voluntary Wind-Up -------------------------------------------- On Nov.25, 2014, the sole shareholder of SBTC Limited 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 liquidators are: Dwight Dube Michael Wheaton Telephone: (345) 640 5555 P.O. Box 31661 2nd Floor Regatta Office Park, Windward III Grand Cayman KY1-1207 Cayman Islands SHANTA FUND: Commences Liquidation Proceedings ---------------------------------------------- On Dec. 1, 2014, the shareholder of Shanta Fund SPC Limited resolved to voluntarily liquidate the company's business. 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 liquidators are: Victor Murray MG Management Ltd. P.O. Box 30116 Landmark Square, 2nd Floor 64 Earth Close Seven Mile Beach Grand Cayman KY1-1201 Cayman Islands Telephone: 1 (345) 749 8181 Facsimile: 1 (345) 743 6767 SHINING NOVA 4: Placed Under Voluntary Wind-Up ---------------------------------------------- On Nov.25, 2014, the sole member of Shining Nova 4 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 UBIZ INVESTMENT: Commences Liquidation Proceedings -------------------------------------------------- On Nov.28, 2014, the sole member of Ubiz Investment Inc resolved to voluntarily liquidate the company's business. 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: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands ================== C O S T A R I C A ================== COSTA RICA: IMF Says Growth Momentum Slowing, 2015 Outlook Subdued ------------------------------------------------------------------ On January 30, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Costa Rica. Costa Rica bounced back quickly from the 2008-09 global crisis, but growth momentum is now slowing and macro vulnerabilities, mainly from the weak fiscal position, are rising. After falling modestly in 2009, real GDP surged in 2010-12. Since then, however, growth has moderated below potential, with the latter also on a declining trend. The counter-cyclical budgetary stimulus imparted in 2009 pushed the deficit above 5 percent of GDP in 2010 (mainly through a rise in wages and transfers). The deficit has been creeping up further since then, placing the public-debt-to-GDP ratio on an unsustainable upward trajectory, which is fast approaching levels shown to increase risks of disorderly adjustment for emerging economies. A fairly inflexible exchange rate has contributed to vulnerabilities associated with dollarization in the financial sector. The outlook for 2015 and beyond remains subdued amid deteriorating fundamentals. Growth in 2015 is expected to stay virtually unchanged, as the positive influence of U.S. recovery offsets the negative impact of a gradual Intel withdrawal. The output gap is projected to widen through 2016, then mostly closing over the medium term, with growth also converging to potential. The baseline scenario contemplates fiscal consolidation of 2.2 percent of GDP over the medium term. In this case, the central government fiscal deficit would stay at about 5.75 percent of GDP, and the public debt ratio would approach 51 percent of GDP by 2019. Thanks to continued prudent monetary policy, inflation is projected to hover around 4 percent after returning within the Central Bank's announced band in early 2015, while the current account deficit rises to 5.25percent of GDP by 2019. Risks to the outlook are tilted to the downside. Concerning external factors, in the case of faster U.S. monetary policy normalization, slightly upside risks prevail, with a positive impact of higher U.S. growth more than offsetting the negative influence of tighter global financial conditions in the short run. However, extreme bouts of market volatility could inflict serious damage, especially given Costa Rica's weak fiscal position, as interest rates may rise abruptly. On the other hand, further sustained declines in energy prices could have a modest positive effect on Costa Rica. On the domestic side, the persistence of a large fiscal deficit and the ensuing rise in the public debt ratio could render the economy vulnerable to sudden changes in financial market conditions. Executive Board Assessment While commending Costa Rica's resilience in the aftermath of the global financial crisis, Executive Directors called for reinvigorated efforts to preserve macroeconomic stability in the wake of waning growth and rising unemployment and vulnerabilities. They recommended an ambitious but phased budget consolidation to arrest the deterioration in the fiscal accounts and put the public debt on a sustainable trajectory, along with a strengthening of the monetary policy framework and structural reforms to boost competitiveness and inclusive growth. Directors welcomed the authorities' intention to implement a total fiscal adjustment of about 4 percent of GDP, with a front-loaded adjustment in 2015 followed by more incremental steps in subsequent years. Noting Costa Rica's low revenue effort relative to peer countries, they supported the emphasis on boosting revenue mobilization through a mix of administrative and policy reforms- including broadening the tax base, and raising the VAT rate and marginal rates on higher-income brackets. Directors also encouraged efforts to contain the growth of current outlays, particularly the wage bill and transfers, thus creating space for much-needed infrastructure spending. They looked forward to Parliamentary approval of outstanding legislative reforms and encouraged consensus building for a comprehensive package of measures to underpin deficit reduction. Over the longer run, measures are also needed to address the social security actuarial deficit. Directors considered the current monetary policy stance to be appropriate, while calling on the Banco Central de Costa Rica (BCCR) to stand ready to increase its policy rate should inflationary pressure persist. They recommended strengthening the monetary policy framework, including further steps towards inflation targeting and enhanced exchange rate flexibility. In this regard, most Directors supported the elimination of the exchange rate band. Directors also recommended the development of tools to underpin greater exchange rate flexibility, including hedging instruments. Directors encouraged implementation of pending FSAP recommendations, to help strengthen financial sector supervision and resilience. They advised a gradual move towards Basel III standards, and strengthening cross-border supervision. Priority should also be given to empowering the Financial Institutions Superintendence to conduct consolidated and transnational supervision, providing adequate protection to supervisors, and enhancing bank resolution procedures. Directors called for continued progress in structural reforms to boost productivity, enhance external competitiveness, and foster long-run inclusive growth. Efforts are needed to streamline the regulatory environment, increase private sector participation in the energy sector, alleviate infrastructure bottlenecks, and promote capital market development. Directors also recommended ameliorating the efficiency of education spending, with a view to increasing women's labor force participation, stimulating productivity, and reducing inequality in the long term. =========== M E X I C O =========== FINANCIERA FINCA: S&P Affirms 'BB-/B' Rating; Outlook Stable ------------------------------------------------------------ As previously announced on Feb. 3, 2015, Standard & Poor's Ratings Services affirmed its 'BB-/B' global scale and 'mxBBB+/mxA-2' Mexican national scale counterparty credit ratings on Financiera Finca S.A. de C.V SOFOM E.N.R. (FINCA). The outlook remains stable. S&P's ratings on FINCA reflect its "weak" business position, "very strong" capital and earnings, "moderate" risk position, and "adequate" funding and liquidity. S&P initially sets the anchor for finance companies (fincos) three notches below the anchor for banks in the same country to reflect the typical lack of central bank access, lower regulatory oversight, and higher competitive risk for finance companies relative to banks. S&P may modify that standard three-notch adjustment for fincos 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, are regulated to some degree, or have unique competitive positions, such as monopolistic or oligopolistic businesses). In Mexico, the anchor for finance companies is only two notches below the bank anchor, reflecting that some of them have regulatory oversight by the National Banking and Securities Commission (CNBV) and that there is a good track record of government support through guarantees and liquidity during periods of market turmoil. In addition, some fincos have funding lines from government-owned banks, which S&P considers as extremely stable. FINANCIERA INDEPENDENCIA: S&P Affirms 'B+' Global Credit Rating --------------------------------------------------------------- As previously announced on Feb. 3, 2015, Standard & Poor's Ratings Services affirmed its 'B+' global scale and 'mxBBB/mxA-3' Mexican national scale counterparty credit ratings on Financiera Independencia S.A.B. de C.V. SOFOM E.N.R. (Findep). At the same time, S&P affirmed its 'B+' rating on its $200 million senior unsecured notes due 2019. The outlook on the issuer credit rating remains positive. S&P's ratings on Findep reflect its "adequate" business position, "moderate' capital and earnings, "weak" risk position, and "adequate" funding and liquidity. The stand-alone credit profile (SACP) is 'b+'. S&P's 'B+' rating on the company's $200 million senior unsecured notes incorporates that, as of Sept. 30, 2014, secured debt represented less than 30% of adjusted assets and unencumbered assets completely covered unsecured debt. "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. MEXICO: Analysts Cut 2015 Economic Growth Estimate to 3.2 Percent ----------------------------------------------------------------- EFE News reports that financial analysts cut their 2015 economic growth estimates for Mexico to 3.2 percent, the Bank of Mexico said, citing a new survey. Analysts estimated in December that Mexico's economy would grow 3.5 percent this year, according to EFE News. UNIFIN FINANCIERA: S&P Affirms 'BB-' Rating on Sr. Unsec. Debt -------------------------------------------------------------- As previously announced, on Feb. 3, 2015, Standard & Poor's Ratings Services affirmed its 'BB-' global scale and 'mxA-/mxA-2' national scale issuer credit ratings on Unifin Financiera, S.A.P.I. de C.V. SOFOM, E.N.R. (Unifin). At the same time, S&P affirmed its 'BB-' senior unsecured debt rating on the company's debt. The outlook on the issuer credit ratings is stable. The ratings on Unifin reflect its "adequate" business position, "moderate" capital and earnings, "moderate" risk position, and "adequate" funding and liquidity. The stand-alone credit profile (SACP) is 'bb-'. S&P's 'BB-' rating on the company's $400 million senior unsecured notes reflect that, as of Sept. 30, 2014, the company's recourse secured debt to assets was less than 15% and unencumbered assets cover unsecured debt by 1.3x. "We initially set the anchor for finance companies three notches below the anchor for banks in the same country to reflect the typical lack of central bank access, lower regulatory oversight, and higher competitive risk for finance companies relative to banks. We may modify that standard three-notch adjustment for finance companies 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, are regulated to some degree, or have unique competitive positions, such as monopolistic or oligopolistic businesses). In Mexico, the anchor for finance companies is only two notches below the bank anchor because the National Banking and Securities Commission (CNBV) oversees some of them, and there is a good track record of government support through guarantees and liquidity during periods of market turmoil. Additionally, some NBFIs have funding lines from government-owned banks, which we consider as extremely stable," S&P said. ====================== P U E R T O R I C O ====================== UNIVERSITY OF PUERTO RICO: S&P Affirms 'BB' SPUR; Outlook Neg. -------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' long-term rating and underlying rating (SPUR) on the University of Puerto Rico's (UPR) existing university system revenue bonds, some of which were issued by the Puerto Rico Industrial, Tourist, Educational, Medical, & Environmental Control Facilities Financing Authority, and removed the ratings from CreditWatch with negative implications. The outlook is negative. "The negative outlook reflects our view that, during the next year, the Puerto Rico economy could weaken further, which could increase pressure on the budget and may result in declines or delays in state appropriations or operating liquidity," said Standard & Poor's credit analyst Bianca Gaytan-Burrell. Although state appropriations are not pledged to the bonds, they make up the largest portion of revenues available for operations. "We could lower the ratings on these university system revenue bonds if the Puerto Rico general obligation rating is lowered or if a delay or reduction in state appropriation payment pressures the university's operating liquidity," continued Ms. Gaytan- Burrell. "Although unlikely, we could revise the outlook stable if the university improves financial resources or if we revise the outlook on Puerto Rico back to stable." Total debt is $620 million, including the $531 million of revenue bonds. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD & TOBAGO: Central Bank Releases US$150 Million More ------------------------------------------------------------ Leah Sorias at Trinidad Express reports that Trinidad and Tobago Central Bank will release US$150 million to the local market, bringing the injection of foreign exchange into the financial system up to US$550 million for the year so far. But in addressing the supply/demand imbalance of foreign exchange again, Central Bank Governor Jwala Rambarran told businesspeople that they must understand there had to be measures applied to how the country's foreign reserves are used, according to Trinidad Express. "The typical question I get from the business community is 'why starve businesses of foreign exchange when the Central Bank sits on US$11 billion in reserves?" Governor Jwala Rambarran asked. "As the guardians of the country's reserves we have to balance today's needs against tomorrow's needs. We are the only entity that can do that. Therefore, if the reserves are the country's insurance against external shocks when the shocks are happening, that is, when you start to activate and make more use of your reserves to help insulate the economy from the shocks that are taking place. We simply cannot take up the country's reserves and hand it over and say, use it as you want," Governor Rambarran said. Governor Rambarran pointed out that, "25 years ago, US$100 million was all the reserves the country had and that was able to pay for six weeks of imports," notes the report. This same amount can only pay for four days of imports, Governor Rambarran said. "I want you to remember this-it took us 25 years to go from US$100 million to US$11 billion. Twenty-five years is half the lifetime of the Central Bank, therefore as the guardians of the country's reserves we have to disburse those reserves prudently. We have to balance today against tomorrow," the report quoted Governor Rambarran as saying. Governor Rambarran said the imbalance in the foreign exchange market was likely to keep growing at a faster pace over the next two to three years and will outstrip supply, the report notes. "So that shortfall is likely to widen in the foreign exchange market. This is why we have said our foreign exchange management program for 2015 speaks to larger and more frequent interventions in the foreign exchange market. It is based on actual hardcore work by the Central Bank," Governor Rambarran noted. Growth in 2015 The report says that Governor Rambarran said the economy is expected to grow by about 1.5 per cent this year, up from 0.8 per cent estimated for 2014. "Bear in mind here we're talking about real economic growth, so we are looking at the level of production that is taking place and is in a sense separated from what is happening with the energy prices," Governor Rambarran explained, the report notes. "We are basically assuming, even the energy sector, that supply disruptions both planned and unplanned are likely to continue in 2015 as they did in 2014. That bpTT and (British Gas) will continue with their cost rationalization exercises but some of that impact will be mitigated by what's happening with increased natural gas production coming from the Starfish well," Governor Rambarran added, the report relays. Governor Rambarran noted that the energy sector was also expected to see growth by about one per cent in 2015, which is a turnaround from the contraction of 1.7 per cent experienced last year, the report notes. "And it will surprise you that this is actually the best performance in the energy sector in the last three years," Governor Rambarran said, the report adds. TRINIDAD & TOBAGO: Chamber Concerned Over Government Shakeup ------------------------------------------------------------ Trinidad and Tobago Newsday reports that the Trinidad and Tobago Chamber of Industry and Commerce has expressed surprise at Feb 2's changes in ministerial portfolios saying these changes could impact on productivity in the respective ministries. Continuous changes of ministers of national security, the Chamber said in a release, "do not lend themselves to a perception of stability" as the country continues to be plagued by a serious crime situation, according to Trinidad and Tobago Newsday. Noting that the country has long enjoyed a reputation for stable governance that has enhanced investor confidence, the Chamber said sweeping changes could reduce confidence in the ability of the new Cabinet to effectively run the country during this time of economic uncertainty. It also questioned the decision to make the sweeping changes with the general elections constitutionally due by September, the report relates. The report discloses that the Chamber's remarks were in response to Prime Minister Kamla Persad-Bissessar's address to the nation during which she dealt with the allegation against former Attorney General Anand Ramlogan who is being investigated by the police for witness tampering to pervert the course of justice. The Chamber said it is of the view that the Prime Minister acted in accordance with the principles of good governance in Ramlogan's removal from his portfolio as Attorney General given the serious nature of the allegations made against him, the report notes. Calling on Acting Police Commissioner Stephen Williams "to act urgently in the conduct and conclusion of his investigations into the allegations," the Chamber said any forthcoming investigation are a matter of public interest and should be conducted free of any perception of interference or bias, the report says. The report discloses that the Chamber called on "all parties to rise above the immediate politics of the situation and conduct themselves in a mature and responsible manner, befitting a country that brands itself "open for business". *********** 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 * * *