/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150212.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 12, 2015, Vol. 16, No. 030 Headlines A R G E N T I N A BUENOS AIRES: Moody's Assigns Caa2 Debt Rating to US$890MM Notes BUENOS AIRES: Moody's Rates ARS2MM Bonds Program '(P)Caa1' C A Y M A N I S L A N D S ALPHAHARVEST CAPITAL: Shareholders Receive Wind-Up Report BBGP COINMACH: Shareholders Receive Wind-Up Report BBGP PARKING: Shareholders Receive Wind-Up Report CALEDONIAN BANK: SEC Sues Bank Over Bogus Registration Statements CSAG COMMODITY: Shareholders Receive Wind-Up Report F4O4 HOLDING: Shareholders Receive Wind-Up Report FIGLEAVES INVESTMENTS: Members Receive Wind-Up Report GEELY AUTOMOBILE: Factory Purchase No Impact on Moody's Ba2 CFR INCENTIVE FUNDS: Shareholders Receive Wind-Up Report KS HOLDINGS II: Shareholders Receive Wind-Up Report MALABRIGO INVESTMENT: Members Receive Wind-Up Report NEW CENTURY: Shareholders Receive Wind-Up Report ORCHARD I INC: Shareholders Receive Wind-Up Report PRIMEPARTNERS ASIA: Shareholders Receive Wind-Up Report SBTC LIMITED: Shareholders Receive Wind-Up Report RISING SUN III: Shareholders Receive Wind-Up Report SHINING NOVA II: Shareholders Receive Wind-Up Report SHINING NOVA III: Shareholders Receive Wind-Up Report SHINING NOVA 4: Shareholders Receive Wind-Up Report SHINING NOVA 5: Shareholders Receive Wind-Up Report SHINSAIBASHI HOLDING: Shareholders Receive Wind-Up Report TOKYO REALTY: Shareholders Receive Wind-Up Report UBIZ INVESTMENT: Members Receive Wind-Up Report D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Taps US$200MM to Halt Dollar's Surprising Jump DOMINICAN REP: Chief Rebuffs 'Interests' Criticism of Coal Plants G U A T E M A L A EMPRESA ELECTRICA: S&P Affirms then Withdraws 'BB' CCR M E X I C O CONTROLADORA COMERCIAL: Soriana May Buy Firm for $3 Billion CONTROLADORA COMERCIAL: Moody's Puts Ba1 CFR on Review for Upgrade MEXICO: Foreign Reserves Fall by $204 Million T R I N I D A D & T O B A G O TRINIDAD CEMENT: To Raise J$362 Million in New Capital V E N E Z U E L A CORPORACION ELECTRICA: S&P Lowers CCR to 'CCC'; Outlook Negative PETROLEOS DE VENEZUELA: Default a Real Risk at $50/Barrel Oil PETROLEOS DE VENEZUELA: S&P Lowers CCR to 'CCC'; Outlook Negative VENEZUELA: To Partially Liberalize Foreign Exchange - - - - - ================= A R G E N T I N A ================= BUENOS AIRES: Moody's Assigns Caa2 Debt Rating to US$890MM Notes ---------------------------------------------------------------- Moody's Investors Service has assigned Caa2 (global scale foreign currency) debt rating to Series 11 Senior Unsecured Notes to be issued by the City of Buenos Aires for up to USD890 million. Ratings Rationale Series 11 Notes are to be offered under the City's Medium Term Note Program, which is currently limited to a maximum authorized amount of USD2,290 million. The notes --which will pay fixed interest rate and have a maturity of six years-- are direct, unconditional, unsecured and unsubordinated obligations of the city ranking at all times pari passu without any preference among themselves. The notes will amortize in three equal installments and will be subject to English Law. With this new bond, the City of Buenos Aires intends to refinance outstanding Series 8 already issued under this program and maturing in April 2015. The proceeds of this new debt could also be used to fund investments in the health and education sectors of the City. The assigned debt rating is equal to the City's Caa2 foreign currency debt rating and reflects our view of the credit quality of the City of Buenos Aires' within Argentina's erratic operating environment. The Caa2 rating assigned to the notes is one notch below the Argentine sovereign bond rating, reflecting the growing risk that sub-sovereigns face in accessing the foreign currency market to serve their international obligations. After this transaction, Moody's anticipates that the ratio of total debt to total revenues of the City of Buenos Aires will rise to 29% from 28% estimated as of December 31, 2014, a relatively low level. The assigned ratings are based on preliminary documentation received by Moody's as of the rating assignment date. Moody's does not expect changes to the documentation reviewed over this period nor anticipates changes in the main conditions that the notes will carry. Should issuance conditions, final terms and conditions or use of proceeds deviate from the tender offer terms submitted and reviewed by the rating agency, Moody's will assess the impact that these differences may have on the rating and act accordingly. What Could Change The Rating Up/Down Given the negative outlook on the issuer ratings, Moody's does not expect upward pressures in the City of Buenos Aires's ratings in the near to medium term. However, a change in Argentina's sovereign outlook back to stable could lead to a change in the outlook back to stable of the City of Buenos Aires. Conversely, a sharp deterioration of the City's financial results, coupled with higher debt levels could add downward pressure to the assigned ratings. The City of Buenos Aires could also be downgraded if the negative outlook on the sovereign rating materializes into a rating downgrade. The principal methodology used in this rating was Regional and Local Governments published in January 2013. BUENOS AIRES: Moody's Rates ARS2MM Bonds Program '(P)Caa1' ---------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo has assigned a (P)Caa1 (global scale local currency) and Baa3.ar (Argentina National Scale) ratings the Province of Buenos Aires's 2015 Local Market Bonds Program for up to ARS2.000 million. In the same rating action Moody's assigned Caa1 -global local currency scale- and Baa3.ar -on Argentina National Scale- to the first two bond classes to be issued under this program. The ratings are in line with the province's long term local currency issuer ratings, which carry negative outlook. Ratings Rationale The 2015 Local Market Bonds Program has been authorized by the provincial Decree 46/2015 and by Law 14.652 of the Province of Buenos Aires (2015 Budget Law). The notes to be issued under the program constitute direct, general, unconditional, secured and unsubordinated obligations of the province and the maximum amount to be issued under the program represents less than 1% of total revenues budgeted for this fiscal year. The bonds to be issued under the program will be payable in Argentine pesos and sold in the local capital market. The province will initially offer one series consisting of two classes, which will have quarterly interest payments, bullet amortization and will mature in 18 and in 24 months respectively. The assigned ratings are based on preliminary documentation received by Moody's as of the rating assignment date. Moody's does not expect changes to the documentation reviewed over this period or anticipates changes in the main conditions that the notes will carry. Should issuance conditions and/or final documentation of any of the series under this program deviate from the original ones submitted and reviewed by the rating agency, Moody's will assess the impact that these differences may have on the ratings and act accordingly. What Could Change The Rating Up/Down Given the negative outlook on the issuer ratings, Moody's does not expect upward pressures in the Province of Buenos Aires's ratings in the near to medium term. However, a change in Argentina's sovereign outlook back to stable could lead to a change in the outlook back to stable of the Province of Buenos Aires. Conversely, a sharp deterioration of the Province of Buenos Aires's financial results, coupled with higher debt levels could add downward pressure to the assigned ratings. The province of Buenos Aires could also be downgraded if the negative outlook on the sovereign rating materializes into a rating downgrade. The principal methodology used in this rating was Regional and Local Governments published in January 2013. Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".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". ========================== C A Y M A N I S L A N D S ========================== ALPHAHARVEST CAPITAL: Shareholders Receive Wind-Up Report --------------------------------------------------------- The shareholders of Alphaharvest Capital Partners, Ltd. received on Jan. 7, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Abhinav Shukla c/o Barnaby Gowrie 75 Rockefeller Plaza 27th Floor New York, NY, 10019 USA Telephone: +1 (345) 914 6365 BBGP COINMACH: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of BBGP Coinmach Holdings Limited received on Jan. 23, 2015, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Dwight Dube Michael Wheaton Telephone (345) 640 5555 Regatta Office Park, 2nd Floor, Windward III P.O. Box 31661 Grand Cayman KY1-1207 Cayman Islands BBGP PARKING: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of BBGP Parking Holdings Limited received on Jan. 23, 2015, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Dwight Dube Michael Wheaton Telephone (345) 640 5555 Regatta Office Park, 2nd Floor, Windward III P.O. Box 31661 Grand Cayman KY1-1207 Cayman Islands CALEDONIAN BANK: SEC Sues Bank Over Bogus Registration Statements ----------------------------------------------------------------- Caribbean360.com reports that the United States regulatory agency, the Securities and Exchange Commission (SEC) has sued the Cayman Islands-based Caledonian Bank and four other companies, claiming that they took more than US$75 million from unregistered sales of "virtually worthless" penny stocks. The SEC sued Caledonian Bank, Caledonian Securities, Clear Water Securities, Legacy Global Markets, and Verdmont Capital, in US federal district court in Manhattan, according to Caribbean360.com. The report notes that the Caledonian defendants are based in the Cayman Islands. Clearwater and Legacy are based in Belize, and Verdmont in Panama. All of the allegations were the same, the SEC said in its 39-page complaint, the report relays. First, they filed "bogus registration statements" with the SEC, purporting to register securities to public shareholders, though there were no such sales and the securities stayed in the control of the issuers and their affiliates, the report discloses "In the sham offerings, the issuers pretended to sell securities to shareholders in such places as Serbia, Mexico, Ireland, Norway, Panama and Jamaica," said the SEC in the court filing obtained by the news agency. It alleged that the restricted securities were then "passed off" as free-trading stocks in the United States and sold to the public, the report notes. The agency claims the defendants operated as affiliates, dealers, sales outlets and underwriters, in connection with four shell companies: Swingplane Ventures, Goff Corp., Nostra Energy and Xuamnii Inc, the report relays. "These violations occurred simultaneously with aggressive and extensive promotion campaigns for the penny stocks of those shell companies," the SEC said, the report discloses. The defendants' unregistered sales of securities generated more than $75 million in proceeds on penny stocks that were virtually worthless and whose prices fell to their former token levels within months of the defendants' sales," the report notes. The SEC is seeking disgorgement, restitution, penalties and an injunction, according to the court papers filed, the report adds. CSAG COMMODITY: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of CSAG Commodity Fund received on Jan. 23, 2015, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Dwight Dube Michael Wheaton Telephone (345) 640 5555 Regatta Office Park, 2nd Floor, Windward III P.O. Box 31661 Grand Cayman KY1-1207 Cayman Islands F4O4 HOLDING: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of F4O4 Holding received on Jan. 6, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. 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 FIGLEAVES INVESTMENTS: Members Receive Wind-Up Report ----------------------------------------------------- The members of Figleaves Investments received on Jan. 12, 2015, 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 GEELY AUTOMOBILE: Factory Purchase No Impact on Moody's Ba2 CFR --------------------------------------------------------------- Moody's Investors Service says that Geely Automobile Holding's (Ba2 stable) proposed acquisition of a new factory in Chunxiao from parent Zhejiang Geely (unrated) is -- once it completes -- credit positive, but has no immediate impact on its Ba2 corporate family and senior unsecured bond ratings. The ratings outlook remains stable. Geely's proposed acquisition is credit positive because it demonstrates the parental support that Zhejiang Geely provides to Geely. It is also in line with Geely's history of acquiring capacity from Zhejiang Geely. On February 9, 2015, Geely announced that it had agreed to buy the factory for RMB1.1 billion. The consideration is based on the factory's net asset value as of 31 January 2015. The factory, located in Ningbo city in Zhejiang Province, will have a production capacity of 100,000 units per annum. Production is expected to begin at the end of 1Q 2015. Its first product will be a new high-end sedan, GC9. It will also make SUVs. "The Chunxiao acquisition will give Geely the capacity to make higher-end models. This will expand its product offering and addressable market, a development which is positive for Geely," says Gerwin Ho, a Moody's Vice President and Senior Analyst. The acquisition requires the approval of Geely's shareholders and is expected to complete in mid- 2015. Geely's cash holdings of around RMB6.4 billion at end-June 2014, the proceeds from its USD300 million bond issuance in October 2014, and operating cash flow will be sufficient to cover its short-term debt and estimated capex , including the Chunxiao acquisition, over the next 12 months. Moody's expects Geely will record 5%-10% year-over-year growth in sales volume in 2015. The projected growth will be driven by China's growing passenger vehicle market, Geely's product line up renewal, and export sales stabilization. The principal methodology used in this rating was Global Automobile Manufacturer Industry published in June 2011. Geely Automobile Holdings Limited is incorporated in the Cayman Islands and listed on the Hong Kong Stock Exchange. The company is one of the largest privately owned, local brand automakers in China. Geely develops, manufactures and sells passenger vehicles that are sold in China and globally. Its chairman and founder, Mr. Li Shufu, became Geely's controlling shareholder in June 2005. Mr. Li and his family held a 42.6% stake in the company at end-2013. INCENTIVE FUNDS: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Incentive Funds (Cayman) SPC received on Jan. 27, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Avalon Ltd. Landmark Square, 1st Floor 64 Earth Close P.O. Box 715, George Town Grand Cayman KY1-1107 Cayman Islands KS HOLDINGS II: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of KS Holdings II received on Jan. 6, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. 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 MALABRIGO INVESTMENT: Members Receive Wind-Up Report ---------------------------------------------------- The members of Malabrigo Investment Company received on Jan. 12, 2015, 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 NEW CENTURY: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of New Century Fund Advisory received on Jan. 6, 2015, 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 ORCHARD I INC: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Orchard I, Inc. received on Jan. 12, 2015, 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 PRIMEPARTNERS ASIA: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Primepartners Asia Merchant Capital Holdings Limited received on Jan. 6, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. 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: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of SBTC Limited received on Jan. 23, 2015, the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Dwight Dube Michael Wheaton Telephone (345) 640 5555 Regatta Office Park, 2nd Floor, Windward III P.O. Box 31661 Grand Cayman KY1-1207 Cayman Islands RISING SUN III: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Rising Sun III Holding received on Jan. 6, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. 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 II: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Shining Nova II Holding received on Jan. 6, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. 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: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Shining Nova III Holding received on Jan. 6, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. 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 4: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Shining Nova 4 Holding received on Jan. 6, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. 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: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Shining Nova 5 Holding received on Jan. 6, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. 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: Shareholders Receive Wind-Up Report --------------------------------------------------------- The shareholders of Shinsaibashi Holding received on Jan. 6, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. 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 TOKYO REALTY: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Tokyo Realty Investment Company received on Jan. 6, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stephen Nelson Telephone: 949-4544 Facsimile: 949-7073 Charles Adams Ritchie & Duckworth 2nd Floor Zephyr House, 122 Mary Street P.O. Box 709 Grand Cayman KY1-1107 Cayman Islands UBIZ INVESTMENT: Members Receive Wind-Up Report ----------------------------------------------- The members of Ubiz Investment Inc received on Jan. 12, 2015, 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 =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Taps US$200MM to Halt Dollar's Surprising Jump ------------------------------------------------------------------ Dominican Today reports that the Dominican Republic Central Bank will start exchange market injecting between US$150 and US$200 million to halt a surprising jump in the dollar rate, now above RD$45. Central banker Hector Valdez Albizu announced that in its last meeting the Monetary Board also approved a 2-point increase to the banks' reserve requirements, which will roll back their liquidity by around RD$14.0 billion, according to Dominican Today. The report notes that Mr. Albizu said the measure aims to reduce liquidity so no one can claim that the climb in the exchange rate results from increased demand from a glut of money. In a press conference, Mr. Albizu called the rate's behavior atypical because there was a record income from tourism (around US$5.6 billion) last year and around US$22.0 billion in general, the report notes. The report discloses that the official said other causes behind the inexplicable situation is that oil has been falling, which means there's less pressure to the exchange market. DOMINICAN REP: Chief Rebuffs 'Interests' Criticism of Coal Plants ------------------------------------------------------------------ Dominican Today reports that state-owned Electric Utility (CDEEE) Chief Executive Officer Ruben Jimenez Bichara rebuffed the criticism that the two coal plants the government builds at a cost of US$2 billion is a "historical mistake" as energy expert Jose Luis Cordeiro claimed at the American Chamber of Commerce (AmchamDR). Ms. Jimenez said if the coal plants weren't feasible, international agencies wouldn't approve funds, and much less in record time because, in his view, the negotiation is at an "excellent" stage, according to Dominican Today. "You think that companies such as BNP Paribas, the National Bank of Paris, the New York subsidiary which came here, would evaluate a project and describe it as excellent if it weren't feasible in economic terms," the official said, the report relates. The report relays that Ms. Jimenez, speaking in the Z-101FM morning radio program, said the criticism to the coal plants is from interests he affirms seek to keep the Dominican Republic from getting funding to conclude the work. ================= G U A T E M A L A ================= EMPRESA ELECTRICA: S&P Affirms then Withdraws 'BB' CCR ------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB' corporate credit rating on rating on Empresa Electrica de Guatemala S.A. (EEGSA). S&P subsequently withdrew the rating at the issuer's request. At the time of the withdrawal the outlook was stable. =========== M E X I C O =========== CONTROLADORA COMERCIAL: Soriana May Buy Firm for $3 Billion ----------------------------------------------------------- Benjamin Bain and Jonathan Levin at Bloomberg News report that Controladora Comercial Mexicana SAB is nearing an agreement to sell most of its 200 retail stores to Organizacion Soriana SAB, two people with knowledge of the transaction said. Comercial Mexicana would sell 160 stores to Organizacion Soriana for about MXN44 billion ($3 billion), one person said, according to Bloomberg News. While the deal is likely to close by the end of the month, any transaction would be subject to shareholder and regulatory approval, the person said, the report relates. The report notes that Comercial Mexicana disclosed almost a year ago that it had held non-binding talks with domestic and foreign companies for a sale of its operations. As recently as October, the retailer was said to be close to an agreement to sell the majority of its stores to another competitor, Grupo Comercial Chedraui SAB, the report discloses. Under the terms discussed with Chedraui, Comercial Mexicana would have sold only the store operations, keeping ownership of the underlying real estate, Bloomberg News reported in October. With the deal now under consideration, Monterrey-based Organizacion Soriana would buy the real estate as well, one of the people said, the report relays. In a statement to the Mexican stock exchange, Comercial Mexicana said it has no material information to disclose and that it's "continuing the process of analyzing strategic alternatives," the report says. The talks with Organizacion Soriana were reported by Excelsior columnist Dario Celis, the report adds. CONTROLADORA COMERCIAL: Moody's Puts Ba1 CFR on Review for Upgrade ------------------------------------------------------------------ Moody's de Mexico placed Controladora Comercial Mexicana, S.A.B. de C.V.'s (Comerci) Aa3.mx and Ba1 corporate family ratings (issuer ratings) under review for upgrade. Ratings Rationale This action results from Comerci's announcement on January 28, 2015 that it reached an agreement with Organizacion Soriana, S.A.B. (Soriana, unrated) to sell the business and operation of 160 retail stores operated under the Mega, Tiendas Comercial Mexicana, Bodega Comercial Mexicana and Alprecio formats. The transaction includes the creation of a new company (New Co.) which will retain 22 supermarkets under the City Market, Fresko, and Sumesa formats as well as 18 stores under other formats that will be ultimately converted to City Market and Fresko stores. Following approval of shareholders and regulators, Comerci ex-New Co would be then acquired by Soriana through a Public Offering in the Mexican stock exchange. Pro-forma for the spin-off of New Co., credit metrics of the remaining entity (Comerci ex-New Co.) will remain strong for the rating category, with an estimated adj. debt/EBITDA below one time. Moreover, after the completion of the transaction, Comerci will be part of a much larger retailer, which will benefit its competitive position as well as its clout with suppliers. Nevertheless, Moody's consider that there are integration risks as Soriana will need to incorporate the acquired stores into its operating platform. In addition, Moody's expect changes in expansion plans and in financial and operating policies. Comerci's liquidity is strong. As of September 30, 2014 Comerci reported cash on hand of MXN2.7 billion (around USD200 million) that can cover 2.4 times short term debt. The company does not have committed credit facilities; instead it uses advised lines of credit for around USD110 million to finance its working capital requirements. Comerci has a comfortable long term debt maturity profile with MXN800 million due 2015, MXN657 million due 2016, and MXN500 million due 2017. According to Comerci, long term debt will be fully prepaid before the transaction closes. During the review period, Moody's will focus on the development of the planned transaction as well as the growth strategy and financial profile of the rated entity after the transaction closes. The period of time covered in the financial information used to determine Controladora Comercial Mexicana S.A.B. de C.V.'s rating is between 31/12/2010 and 30/9/2014 (source: Mexican stock exchange). The principal methodology used in rating Controladora Comercial Mexicana, S.A.B. de C.V. was the Global Retail Industry methodology published in June 2011. MEXICO: Foreign Reserves Fall by $204 Million --------------------------------------------- EFE News reports that Mexico's foreign reserves fell by $204 million last week to $195.8 billion, the Bank of Mexico said. Gold and foreign currency reserves dropped in the week ending Feb. 6 mainly due to a change in the value of the bank's foreign assets, the central bank said, according to EFE News. =============================== T R I N I D A D & T O B A G O =============================== TRINIDAD CEMENT: To Raise J$362 Million in New Capital ------------------------------------------------------ RJR News reports that the board of Trinidad Cement Limited has passed a resolution to raise a maximum of J$362 million in new capital. This will be done via a rights issue of $124.8 million new shares at a price of $2.90 each, according to RJR News. The report notes that Trinidad Cement shareholders will be offered the right to purchase one new share for every two they hold. Trinidad Cement Chairman Wilfred Espinet said in establishing the terms of the rights issue, the board took into consideration the shareholders' situation especially the fact they have gone for eight years without a dividend and suffered a slippage in share value, the report notes. * * * As reported in the Troubled Company Reporter-Latin America on Oct. 6, 2014, RJR News said Dr. Rollin Bertrand, Chief Executive Officer of Trinidad Cement Limited, the parent company for Jamaica's Caribbean Cement Limited, was sacked. The report noted that Dr. Bertrand, TCL Chairman Andy Bhajan, and four other directors, tendered their resignations minutes before a group of shareholders met to have them removed at an August 19 special meeting. Although he resigned as director at that meeting, Dr. Bertrand retained his position as Chief Executive Officer at that time, the report related. On Oct. 8, 2014, the TCRLA said that Standard & Poor's Ratings Services lowered its corporate credit rating on Trinidad Cement Limited Group (TCL) to 'D' from 'B'. The downgrade reflects TCL's missed debt service payments due Sept. 30, 2014. On Oct. 9, 2014, the TCRLA reported that Fitch Ratings downgraded Trinidad Cement Limited Group's (TCL) foreign and local Currency Issuer Default Ratings (IDRs) to 'D' from 'B-'. Trinidad Cement Limited is a cement company and is the parent company of Caribbean Cement Company Limited. ================= V E N E Z U E L A ================= CORPORACION ELECTRICA: S&P Lowers CCR to 'CCC'; Outlook Negative ---------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit and senior unsecured debt ratings on Corporacion Electrica Nacional S.A. (Corpoelec) to 'CCC' from 'CCC+'. The outlook is negative. The ratings on Corpoelec continue to reflect S&P's view that there is an "almost certain" likelihood that Venezuela would provide timely and sufficient extraordinary support to the company in the event of financial distress. Corpoelec's 'b-' stand-alone credit profile (SACP) remains unchanged. "In accordance with our criteria for GREs, our view of an almost certain likelihood of extraordinary support is based on our assessment of Corpoelec's critical role as the only provider of electricity services in Venezuela," said Standard & Poor's credit analyst Maria del Sol Gonzalez. In S&P's opinion, this provides a strong economic incentive for the sovereign to support the company during periods of financial distress. In S&P's assessment, it also incorporates its integral link with the government given its full ownership of Corpoelec and its special public status that S&P views as an extension of the government. Headquartered in Caracas, Venezuela, Corpoelec is the country's national integrated electric utility PETROLEOS DE VENEZUELA: Default a Real Risk at $50/Barrel Oil ------------------------------------------------------------- Petroleos de Venezuela S.A.'s (PDVSA) 'CCC' rating suggests a real possibility of default with average recovery for bondholders likely at the bottom of 31%-50% range, according to the latest report in Fitch Ratings' 10 report series Top 10 Most-Actively Traded LatAm Corporates. "Recovery would be highly dependent on the company's and the government's willingness to provide concessions to bondholders to be able to access debt capital markets in the future," said Lucas Aristizabal, Senior Director. "The bulk of the company's assets are in Venezuela, and oil and gas reserves, the most valuable asset from a recovery perspective, belong to the government. Other assets abroad will provide very limited recovery for bondholders due to structural subordinations." Fitch expects investors will have limited ability to embargo in- transit oil vessels to bolster recovery. PDVSA's liquidity position will deteriorate significantly during 2015 should oil prices remain at current levels throughout the year, the company is not able to access debt capital markets, and the government does not reduce transfers. PDVSA's negative funds from operations before borrowings from the central government significantly exposes the company to oil price downturns. A Bolivar devaluation could harm PDVSA's cash flow generation if the government continues to require the company to exchange its export proceeds at the lower exchange rate. Currently, there are three exchange rates prevailing in Venezuela and PDVSA exchanges approximately 80% of its export proceeds at the two lowest rates. PETROLEOS DE VENEZUELA: S&P Lowers CCR to 'CCC'; Outlook Negative ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit and senior unsecured debt ratings on Petroleos de Venezuela S.A. (PDVSA) to 'CCC' from 'CCC+'. The outlook is negative. The rating action on PDVSA follows the downgrade of Venezuela to 'CCC' from 'CCC+'. S&P anticipates that higher political risk in Venezuela coupled with lower oil prices results in a higher refinancing risk for PDVSA, since it has significant debt maturities coming due in the second half of the year. S&P believes that there is an "almost certain" likelihood that the government would provide timely and extraordinary support to PDVSA, in case of financial distress. "We also believe if the sovereign were to experience stress, this could result in an extraordinary financial burden on PDVSA," said Standard & Poor's credit analyst Marcela Duenas. S&P's assessment of an "almost certain" likelihood of extraordinary government support is based on: -- PDVSA's "critical" role as it contributes about 50% of Venezuela's revenues and 90% of its exports, and its key role in meeting the sovereign's political and economic objectives; and -- Its "integral" link with the government, given its full and stable ownership of the company. The company's "weak" business risk profile continues to reflect the government's heavy intervention and PDVSA's challenge to increase production. VENEZUELA: To Partially Liberalize Foreign Exchange --------------------------------------------------- EFE News reports that Venezuela's vice president for economic policy announced that the government will inaugurate this week a three-tiered exchange-rate regime which includes a "totally free" market open to both individuals and companies. The third tier, to be known as the Marginal Currency System, is to operate via banks, exchange houses and authorized traders when the new regime takes effect, Rodolfo Marco Torres told a press conference at the Central Bank, according to EFE News. *********** 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. 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