/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150219.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 19, 2015, Vol. 16, No. 035 Headlines A R G E N T I N A ARGENTINA: Debt Dispute Remains Murky Even as UK Ct. Sheds Light C A Y M A N I S L A N D S ALTIMA INDIA: Members Receive Wind-Up Report BAYESIAN MULTI-STRATEGY: Shareholders Receive Wind-Up Report BENNELONG CAYMAN: Shareholders Receive Wind-Up Report EEA CAYMAN FUND: Shareholders Receive Wind-Up Report FRAM CAPITAL: Members Receive Wind-Up Report GLG NATURAL: Shareholders Receive Wind-Up Report GLG TISBURY: Shareholders Receive Wind-Up Report GLG TISBURY OPPORTUNITY: Shareholders Receive Wind-Up Report KI ANOMALY: Shareholders Receive Wind-Up Report KI ANOMALY MASTER: Shareholders Receive Wind-Up Report KRATOS CAYMAN: Shareholders Receive Wind-Up Report KSYRIUM I LIMITED: Shareholders Receive Wind-Up Report MAN LONG/SHORT: Shareholders Receive Wind-Up Report SAL-OPES GP: Members Receive Wind-Up Report STERLING CAYMAN: Shareholders Receive Wind-Up Report SURSUM CAPITAL: Shareholders Receive Wind-Up Report TRG ASIA: Shareholders Receive Wind-Up Report WOODBINE CAYMAN: Shareholders Receive Wind-Up Report D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Mogul Upbeat Despite Dismal Trade Deficit M E X I C O METROFINANCIERA II: S&P Lowers Rating on Series MTROCB 08U to CCC- P U E R T O R I C O PUERTO RICO: U.S. Commonwealth is Bankrupt, says Media Group T R I N I D A D & T O B A G O TRINIDAD AND TOBAGO POSTAL: Union Calls on Mgmt to Engage in Talks V E N E Z U E L A VENEZUELA: To Allow Free-Floating Exchange Rate X X X X X X X X X AVON: To Cease Operations in 16 Caribbean Territories - - - - - ================= A R G E N T I N A ================= ARGENTINA: Debt Dispute Remains Murky Even as UK Ct. Sheds Light ---------------------------------------------------------------- Peter Eavis writing for The New York Times' DealBook reports that a stalemate in the bitter dispute over Argentina's bonds looks set to drag on, even after a ruling in an English court gave one side a small victory. A New York federal judge has for months blocked Argentina from making payments on most of the bonds that is has issued in foreign markets, greatly frustrating investors who hold the bonds, according to The New York Times' DealBook. The report notes that some of those bonds were issued under English law, which prompted investors who hold the debt to pursue their case at the England and Wales High Court, Chancery Division, in London. Judge David Richards, in his ruling, agreed with the investors' assertion that EUR225 million ($257 million) set aside to pay the bonds is governed by English law, the report discloses. But the judge did not rule that the bank that handles the bond payments was free to pass the money to the bondholders, the report notes. "This clarifies that the money belongs to them," said W. Mark C. Weidemaier, an associate professor at the University of North Carolina School of Law, "but it does not do much to advance the ball to getting the money in their hands," the report relays. The report says that the wider dispute over the bonds, which pits prominent hedge fund managers against each other, and which is changing the way the vast international bond markets work, stems from Argentina's default in 2001 on nearly $100 billion of debt. After the default, Argentina cut deals with its creditors, issuing new bonds worth much less than the original securities, the report relays. Some investors, known as holdouts, refused to accept the new, so-called exchange bonds and later sued Argentina for a full repayment, the report discloses. Judge Thomas P. Griesa of the Federal District Court in Manhattan, sided with the holdouts and ruled three years ago that Argentina could not make payments on the exchange bonds without also making the holdouts whole, the report relates. Argentina refused to comply with Judge Griesa's order. Argentina's president, Cristina Fern ndez de Kirchner, has often taken a vitriolic approach to the debt fight, recently calling the hedge fund holdouts "vulture funds" and "economic terrorists," the report recalls. But Judge Griesa's order was able to stop the payments because it was written in such a way that any bank passing on money from Argentina to the exchange bondholders would be in contempt of his court, the report notes. Holders of the English law exchange bonds include Kyle Bass's hedge fund Hayman Capital Management and Soros Fund Management, the family office of George Soros, the report says. The holdout camp contains Paul Singer's Elliott Management and Aurelius Capital Management. The holdouts remained defiant after the ruling. "Exchange Bondholders cynically went to the U.K. court seeking relief that they had already been denied in the U.S. courts," Robert Cohen, a lawyer representing NML Capital, a subsidiary of Elliott, said in a statement obtained by the news agency. "That effort failed," Mr. Cohen added. The report notes that legal specialists say that the exchange bondholders may have come away with something small. The bondholders, they said, might decide to take Judge Richards' declaration that the money set aside is covered by English law to Judge Griesa, the report discloses. But such an action, they added, would almost certainly not persuade him to change his order that bars payments to the exchange bondholders, the report says. The order effectively shuts Argentina's government out of the international debt markets, the report relays. But that is not necessarily a bind, since the government seems able to finance its spending without tapping global bond investors, notes the report. The case, as it lingers, may, however, deter foreign investment in private Argentine entities, the report relates. The report notes that the holdouts may be hoping that a new Argentine government, looking for ways to clear the economic clouds over the country, will compromise and pay them in full. Argentina's next general elections, which include a vote for a new president, take place in October. After winning two elections, in 2007 and 2011, Mrs. Kirchner is not eligible to stand again, the report adds. * * * The Troubled Company Reporter-Latin America, on Aug. 1, 2014, reported that Argentina defaulted on some of its debt late July 30 after expiration of a 30-day grace period on a US$539 million interest payment. Earlier that day, talks with a court- appointed mediator ended without resolving a standoff between the country and a group of hedge funds seeking full payment on bonds that the country had defaulted on in 2001. A U.S. judge had ruled that the interest payment couldn't be made unless the hedge funds led by Elliott Management Corp., got the US$1.5 billion they claimed. The country hasn't been able to access international credit markets since its US$95 billion default 13 years ago. As a result, reported the TCR-LA on Aug. 1, Standard & Poor's Ratings Services lowered its unsolicited long-and short-term foreign currency sovereign credit ratings on the Republic of Argentina to selective default ('SD') from 'CCC-/C'. The TCR-LA, on Aug. 4, 2014, also reported that Fitch Ratings downgraded Argentina's Foreign Currency Issuer Default Rating (IDR) to 'RD' from 'CC', and its Short-Term Foreign Currency Issuer Default Rating to 'RD' from 'C'. Meanwhile, Moody's Investors Service affirmed Argentina's Caa1 issuer rating, which also applies to domestic law bonds, confirmed the (P)Caa2 rating for its foreign law bonds, and affirmed the Ca rating on the original defaulted bonds. The long-term issuer rating was placed on negative outlook, reported the TCR-LA on Aug. 5, 2014. On Aug. 8, 2014, the TCR-LA reported that Moody's Latin America Agente de Calificacion de Riesgo affirmed the deposit, debt, issuer and corporate family ratings on Argentina's banks and financial institutions, both on the global and national scales. The outlook on these ratings has been changed to negative from stable. At the same time, the rating agency has affirmed the banks' Caa2 foreign-currency deposit ratings and Not- Prime short-term ratings. The banks' standalone E financial strength ratings corresponding to caa1 baseline credit assessments (BCA) have also been affirmed. The TCR-LA, On Aug. 6, 2014, also reported that DBRS Inc. has downgraded Argentina's long-term foreign currency issuer rating from CC to Selective Default (SD). The short-term foreign currency rating has been downgraded to Default (D), from R-5. The long-term and short-term local currency issuer ratings have been confirmed at B (low) and R-5, respectively. The trend on the long-term local currency rating is Negative, and the trend on the short-term local currency rating is Stable. On Nov. 3, 2014, the TCR-LA reported that Fitch Ratings downgraded Argentina's rating on Par Bonds issued under Foreign Law to 'D' from 'C' as Argentina has not been able to cure the missed coupon payments on its par bonds issued under foreign law after the expiration of the 30-day grace period on Oct. 30. According to Fitch's criteria, this constitutes an event of default and Fitch has downgraded the affected securities to 'D'. In addition, Fitch has affirmed: -- Foreign Currency Issuer Default Rating (IDR) at 'RD'; -- Local Currency IDR at 'CCC'; -- Short-term Foreign Currency IDR at 'RD'; -- Country Ceiling at 'CCC'. -- Performing Foreign Law Exchanged Securities (Global 17) at 'C'; -- Local Currency exchanged bonds under Argentine Law at 'CCC'; -- Foreign and Local Currency non-exchanged securities under Argentine Law at 'CCC'; -- Discount Bonds issued under Foreign Law at 'D'. ========================== C A Y M A N I S L A N D S ========================== ALTIMA INDIA: Members Receive Wind-Up Report -------------------------------------------- The members of Altima India Master Fund Limited received on Dec. 30, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Stephen Sargison Tamara Hill 89 Nexus Wa, Camana Bay P.O Box KY1-9007 Cayman Islands BAYESIAN MULTI-STRATEGY: Shareholders Receive Wind-Up Report ------------------------------------------------------------ The shareholders of Bayesian Multi-Strategy Cayman Fund Limited received on Jan. 27, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mr. Keiran Hutchison c/o Steve Bull Telephone: (345) 814 9060 Facsimile: (345) 814 8529 Ernst & Young Ltd. 62 Forum Lane Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands BENNELONG CAYMAN: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Bennelong Cayman Fund Limited received on Jan. 27, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mr. Keiran Hutchison c/o Steve Bull Telephone: (345) 814 9060 Facsimile: (345) 814 8529 Ernst & Young Ltd. 62 Forum Lane Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands EEA CAYMAN FUND: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of EEA Cayman Fund Limited received on Jan. 27, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mr. Keiran Hutchison c/o Steve Bull Telephone: (345) 814 9060 Facsimile: (345) 814 8529 Ernst & Young Ltd. 62 Forum Lane Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands FRAM CAPITAL: Members Receive Wind-Up Report -------------------------------------------- The members of Fram Capital Brazil SPC Ltd. received on Jan. 22, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Guilherme Muniz Atem Telephone: +55 11 3513-3175 Facsimile: +55 11 3513 3131 Harneys Services (Cayman) Limited Harbour Place, 4th Floor 103 South Church Street P.O. Box 10240 Grand Cayman KY1-1002 Cayman Islands GLG NATURAL: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of GLG Natural Resources Offshore Fund Ltd. received on Jan. 27, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mr. Keiran Hutchison c/o Steve Bull Telephone: (345) 814 9060 Facsimile: (345) 814 8529 Ernst & Young Ltd. 62 Forum Lane Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands GLG TISBURY: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of GLG Tisbury Fund Limited received on Jan. 27, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mr. Keiran Hutchison c/o Steve Bull Telephone: (345) 814 9060 Facsimile: (345) 814 8529 Ernst & Young Ltd. 62 Forum Lane Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands GLG TISBURY OPPORTUNITY: Shareholders Receive Wind-Up Report ------------------------------------------------------------ The shareholders of GLG Tisbury Opportunity Fund Limited received on Jan. 27, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mr. Keiran Hutchison c/o Steve Bull Telephone: (345) 814 9060 Facsimile: (345) 814 8529 Ernst & Young Ltd. 62 Forum Lane Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands KI ANOMALY: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of KI Anomaly Fund received on Jan. 5, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray MG Management Ltd. PO 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 KI ANOMALY MASTER: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of KI Anomaly Master Fund received on Jan. 5, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray MG Management Ltd. PO 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 KRATOS CAYMAN: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Kratos Cayman Fund Limited received on Dec. 15, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mr. Keiran Hutchison c/o Steve Bull Telephone: (345) 814 9060 Facsimile: (345) 814 8529 Ernst & Young Ltd. 62 Forum Lane Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands KSYRIUM I LIMITED: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of KSYRIUM I Limited received on Jan. 16, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands MAN LONG/SHORT: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Man Long/Short Europe Index Tracker Series 1 Ltd received on Jan. 27, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mr. Keiran Hutchison c/o Steve Bull Telephone: (345) 814 9060 Facsimile: (345) 814 8529 Ernst & Young Ltd. 62 Forum Lane Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands SAL-OPES GP: Members Receive Wind-Up Report ------------------------------------------- The members of SAL-OPES GP Limited received on Jan. 22, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Torman Limited Harneys Services (Cayman) Limited Telephone: +1 (345) 815 2921 Harbour Place, 4th Floor 103 South Church Street P.O. Box 10240 Grand Cayman KY1-1002 Cayman Islands STERLING CAYMAN: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Sterling Cayman Fund Limited received on Jan. 27, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mr. Keiran Hutchison c/o Steve Bull Telephone: (345) 814 9060 Facsimile: (345) 814 8529 Ernst & Young Ltd. 62 Forum Lane Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands SURSUM CAPITAL: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Sursum Capital Cayman Fund Limited received on Jan. 27, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mr. Keiran Hutchison c/o Steve Bull Telephone: (345) 814 9060 Facsimile: (345) 814 8529 Ernst & Young Ltd. 62 Forum Lane Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands TRG ASIA: Shareholders Receive Wind-Up Report --------------------------------------------- The shareholders of TRG Asia Cayman Fund Limited received on Jan. 27, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mr. Keiran Hutchison c/o Steve Bull Telephone: (345) 814 9060 Facsimile: (345) 814 8529 Ernst & Young Ltd. 62 Forum Lane Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands WOODBINE CAYMAN: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Woodbine Cayman Fund Limited received on Jan. 27, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mr. Keiran Hutchison c/o Steve Bull Telephone: (345) 814 9060 Facsimile: (345) 814 8529 Ernst & Young Ltd. 62 Forum Lane Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Mogul Upbeat Despite Dismal Trade Deficit ------------------------------------------------------------- Dominican Today reports that Dominican Republic's trade deficit with India was US$121.8 million in 2013, when it exported US$10.2 million and imported US$132.1 million. Dominican Republic Industries Association president Campos de Moya provided the figures in a meeting with India Foreign Affairs minister Vijay Kumar Singh, who concluded his official 3-day visit to the country, according to Dominican Today. "We could ask ourselves if there are no conditions to balance our trade deficit, what could we do to make our business relationship more favorable? As we redefine our model of economic development internally, we can say that there are lessons to learn and can be useful in this redefinition process," the report quoted Mr. De Moya as saying. The report notes that Mr. De Moya said "India's success rests on its entrepreneurship, the ability to turn challenges into opportunities in the possibility that the government could pave the way in some areas, but also with the determination to keep going even when the government is slow on the needed reforms. That is to say, in their business style." In the meeting with foreign officials and Dominican industry leaders Mr. De Moya said among the key features of India's development figure the connectivity emerged as an overall global development, as well as the emphasis on certain areas of the education which led to a highly skilled labor to turn India into a world-class high-tech areas such as automobiles, pharmaceuticals and most notably, in the software industry, the report notes. Mr. De Moya said many Indian pharmaceutical companies are multinationals which even purchases from other businesses worldwide, the report relays. Autos The report relays that Mr. De Moya said in the case of the automotive industry, which requires constant innovation, engineers and manufacturers in India have shown what is flexibility and speed, "of which from the AIRD little is spoken. "No one imagined that one day Tata Steel would acquire Britain's Corus, which was six times its size, or that Tata Motors would acquire Jaguar and Land Rover, or India's metallurgical, Hindalco, would take over Novellis," the report quoted Mr. De Moya as saying. "The industrial sector, in particular, is optimistic, it's fiercely sticking to the view that we can have a prosperous country for all, if we take risks, if it has the capacity to adapt to change. The Dominican business sector wants better cooperation with industry in India, I want to balance the numbers we talked about earlier," Mr. De Moya said, the report relays. The report relays that De Moya added that as AIRD president and as India Honorary Consul, it's not about size of economies. "Let's surprise analysts and break the predictions directing us toward unprecedented growth of our exports. If you want to summarize in one sentence what should be our priority and the priority of our regulations, it would read: export, export and export." =========== M E X I C O =========== METROFINANCIERA II: S&P Lowers Rating on Series MTROCB 08U to CCC- ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its long-term global and Mexico National (CaVal) scale ratings on three Mexican residential mortgage-backed securities (RMBS) transactions originated and serviced by Metrofinanciera S.A.P.I. de C.V. SOFOM E.N.R (Metrofinanciera). S&P also affirmed its ratings on four other Mexican RMBS deals originated and serviced by Metrofinanciera. At the same time, S&P removed five of these ratings from CreditWatch, where they were placed with negative implications on Jan. 30, 2015. The downgrades on series METROCB 05U, MFCB 05U, and MTROCB 08U reflect S&P's opinion that their current levels of credit enhancement remain very weak, and, in the case of series METROCB 05U and MTROCB 08U, continue deteriorating. The weak credit enhancement levels result in generally higher estimated levels of foreclosure frequency and loss severity (obtained using LEVELS Mexico) than those observed in S&P's last rating action in October 2013. Therefore, in S&P's opinion, the credit enhancement levels in these transactions are no longer sufficient to support their previous rating levels. In terms of portfolio performance, the levels of non-performing loans for series METROCB 05U and MFCB 05U are very similar to those observed in October 2013, while the level for series MTROCB 08U has decreased slightly. Nonetheless, overcollateralization for series METROCB 05U and MTROCB 08U declined from those observed in October 2013. Overcollateralization for series MFCB 05U has remained relatively stable; however, S&P believes it is no longer sufficient to support its stress scenarios corresponding to its previous rating level under its updated estimations for loss severity and foreclosure frequency. Series METROCB 05U and MFCB 05U have partial credit guarantees (PCGs) provided by Sociedad Hipotecaria Federal S.N.C. (SHF) for up to 26% and 11% of the outstanding balance of the notes, respectively. These PCGs can be disbursed to cover interest shortfalls under possible liquidity events or principal at maturity. However, they cannot be disbursed to restore the parity between current assets and liabilities; therefore, their capacity to absorb losses is very limited. The rating affirmations on series METROCB 04U, METROCB 06U, METROCB 07U, and MTROFCB 08 reflect S&P's opinion that the transactions have sufficient levels of credit enhancement--in the orms of overcollateralization, excess spread, cash reserves and PCGs--to support their current rating levels under our projected stress scenarios. The affirmations also reflect the performance of the portfolios backing the classes, which S&P considers in line with their current rating levels. The underlying portfolios for series METROCB 04U and MTROFCB 08 have relatively solid performance, with non-performing levels similar to those observed in October 2013. Although the overcollateralization for series METROCB 06U and MTROCB 07U continue to deteriorate, S&P believes that they are still sufficient to support our projected stress scenarios consistent with their current rating levels of 'mxB- (sf)'. In general, the transactions have begun to realize additional income derived from increased sales of foreclosed properties and the implementation of loan modification programs, which has helped to decrease non-performing loan ratios in some portfolios. However, in S&P's opinion, these efforts have not been sufficient to contain and revert the decline in the overcollateralization for most of these transactions. DEFAULT RATIOS AND CREDIT ENHANCEMENT LEVELS(i) Series Def. (%) Def. (%) O/C(%) PCG(%) C/E (ii) (iii) (iv) (v) (iv, v) METROCB 04U 27.65 5.18 6.92 9.00 15.92 METROCB 05U 32.89 7.53 (35.67) 26.00 (9.67) MFCB 05U 33.01 9.29 (29.32) 11.00 (18.32) METROCB 06U 45.67 15.6 (47.18) 0.00 (47.18) MTROCB 07U 50.29 23.34 (83.26) 0.00 (83.26) MTROCB 08U 45.34 22.70 (88.47) 0.00 (88.47) MTROFCB 08 31.38 15.03 0.44 34.16 34.60 (i)Calculations used data as of December 2014. (ii)Defaults measured over the loans' outstanding amount. (iii)Defaults measured over the loans' initial balance. (iv)Calculated as one minus (liabilities divided by current assets including cash in the trusts). (v)Available PCG amount. Standard & Poor's estimates defaults considering the reported delinquency buckets of 61-90 days and more than 90 days. O/C--Overcollateralization. PCG-- Partial credit guarantee. C/E--Credit enhancement. S&P estimated the transactions' delinquency and default rates and current credit enhancement levels using its RMBS methodology and assumptions, and analyzed the transactions using the LEVELS Mexico model to determine updated foreclosure frequency and loss severity levels. S&P then used its Mexican RMBS cash flow model to determine its rating on each deal based on its financial position, projected performance, and structure. S&P modeled each deal's expected recovery using asset liquidations that are consistent with the model's output. FORECLOSURE FREQUENCY AND LOSS SEVERITY LEVELS MODELED FOR THE RESPECTIVE ASSIGNED RATING LEVEL Current rating Series level FF (%) LS (%) LSDP (%) METROCB 04U mxAA (sf) 32.92 56.00 57.03 METROCB 05U mxBBB- (sf) 28.74 33.65 38.05 MFCB 05U mxBB (sf) 26.49 29.67 34.17 METROCB 06U mxB- (sf) 33.88 21.45 25.45 MTROCB 07U mxB- (sf) 29.16 20.08 22.70 MTROCB 08U mxCCC (sf) 21.75 14.04 20.46 MTROFCB 08 mxAA (sf) 33.29 25.79 39.35 FF--Foreclosure frequency. LS-Loss severity. LSDP-Loss severity of the defaulted portfolio. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATINGS LOWERED AND REMOVED FROM WATCH NEGATIVE Metrofinanciera - Bursatilizaciones de Hipotecas Residenciales Series Maturity Rating date To From METROCB 05U 2/20/2034 mxBBB- (sf) mxA (sf)/Watch Neg MFCB 05U 10/24/2033 mxBB (sf) mxBBB- (sf)/Watch Neg Metrofinanciera - Bursatilizaciones de Hipotecas Residenciales II Series Maturity Rating date To From MTROCB 08U 4/1/2033 CCC- (sf) CCC+ (sf)/Watch Neg MTROCB 08U 4/1/2033 mxCCC (sf) mxB (sf)/Watch Neg RATINGS AFFIRMED AND REMOVED FROM WATCH NEGATIVE Metrofinanciera - Bursatilizaciones de Hipotecas Residenciales Series Maturity Rating date To From METROCB 06U 11/14/2033 mxB- (sf) mxB- (sf)/Watch Neg Metrofinanciera - Bursatilizaciones de Hipotecas ResidencialesII Series Maturity Rating date To From MTROCB 07U 12/01/2033 CCC (sf) CCC (sf)/Watch Neg MTROCB 07U 12/01/2033 mxB- (sf) mxB- (sf)/Watch Neg RATINGS AFFIRMED Metrofinanciera - Bursatilizaciones de Hipotecas Residenciales Series Maturity Rating date METROCB 04U 11/11/2033 mxAA (sf) Metrofinanciera - Bursatilizaciones de Hipotecas ResidencialesII Series Maturity Rating date MTROFCB 08 6/01/2039 mxAA (sf) ====================== P U E R T O R I C O ====================== PUERTO RICO: U.S. Commonwealth is Bankrupt, says Media Group ------------------------------------------------------------ Fox News Latino reports that in an unusual step, Puerto Rico's leading media group openly declared, calling for the restructuring of a public debt that it says is really twice the official figure. "Puerto Rico is broke" is the eloquent front-page headline Feb. 3, of El Nuevo Dia, the daily with the most readers in the U.S. commonwealth and which dedicates a 20-page special to proving that the Caribbean island's accumulated debt is double the generally accepted figure of $73 billion, according to Fox News Latino. The report notes that the article talks about a $167.46 billion debt, a "frightening" figure obtained by adding up interest on the debt and the deficit accumulated by retirement and public health programs. "You don't need to be an economist from Harvard to understand that this debt is unsustainable," says the editorial entitled "Restructuring, there's no other choice," and which bluntly states that "Puerto Rico's viability as a country is at stake," the report relays. Fox News Latino discloses that this move by the Ferre Rangel Group was being described as historic, because up to now few have dared to voice such a warning, and yet the alarm is being sounded by a conglomerate that besides controlling three of the five biggest newspapers on the island, has many other enterprises. "Since the beginning of the century at least 20 sovereign nations have defaulted or renegotiated their government debts. Some preventively and others after defaulting," the editorial said, the report relays. The report says that the editor of the daily, Luis Alberto Ferre Rangel, said the intention is to "focus public debate" on "recapitalizing" the Government Development Bank, restructuring the debt, redimensioning government and carrying out a genuine tax reform." Without singling out either of the two parties that dominate Puerto Rican politics, it sums up very clearly the causes that have led to this complicated economic situation, with simple infographics that go back to the 1980s, the report notes. At that time, it said, "the government began to borrow funds in order to pay its debts when faced with a reduction of tax revenues caused, among other factors, by the economic crisis set off by the oil embargo of the mid-1970s and the recession from the mid-1980s to the beginning of the 1990s," the report discloses. "Over the past 15 years, the government has operated under a constant deficit. Poor administration and wrong decisions paved the way to a historic public debt that now has the country almost totally bankrupt," the paper said, notes the report. The report says that for that reason, "it is now an urgent matter to explore and establish the government's options for getting the country out of this profound crisis," which is only getting worse, the daily said, because of the exodus of Puerto Ricans to the U.S. mainland. Fewer than 1 million of Puerto Rico's 3.5 million residents have steady jobs, food costs have gone up almost 50 percent over the last 10 years, pension systems have accumulated $34 billion in unfunded liabilities and the total owed to bondholders comes to $47,800 per inhabitant, the report adds. As reported in the Troubled Company Reporter Latin America on February 16, 2015, Standard & Poor's Ratings Services has lowered its general obligation (GO) rating on the Commonwealth of Puerto Rico to 'B' from 'BB'. The ratings outlook is negative, with S&P saying Puerto Rico's current economic and financial trajectory is now more susceptible to adverse financial, economic, and market conditions that could ultimately impair the commonwealth's ability to fund services and its debt commitments. Persistent economic weakness over many years has contributed to declining revenue and fiscal imbalance, it added. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD AND TOBAGO POSTAL: Union Calls on Mgmt to Engage in Talks ------------------------------------------------------------------ Trinidad and Tobago Newsday reports that Trinidad and Tobago Postal Corporation Workers Union is calling upon the management to engage in wage-talks so as to raise the workers' salaries that are stuck at 2010 levels which the union claimed are far below their Caricom counterparts and other sectors in Trinidad and Tobago. At a news conference at its El Dorado, Tunapuna office, union general secretary, Reginald Critchlow made this call as he observed that typically earns just TT$4,000 per month, according to Trinidad and Tobago Newsday. Mr. Critchlow said an independent consultant, HR, had previously recommended a 18.5 percent pay-raise for the period 2008 to 2010 but TTPost had refused to apply this retroactively for that period, the report notes. Mr. Critchlow would like to see that the 18.5 percent applied for the new period of 2011 to 2013 for which he hopes wage talks will begin by month-end, the report relates. The report discloses that Mr. Critchlow said the Chief Personnel Officer's (CPO) apparent failure to instruct the TTPost Management to engage the union has left workers feel as irate as jack spaniards (wasps). Under the ILO Convention, management is obliged to meet and treat with the union, Mr. Critchlow said in frustration, the report says. Alleging that the CPO's Office has an archaic approach, Mr. Critchlow urged the Ministry of Finance and the Government to review the operations of the CPO Office so as to be more relevant to the 21st Century and to the needs of workers, the report adds. ================= V E N E Z U E L A ================= VENEZUELA: To Allow Free-Floating Exchange Rate ----------------------------------------------- Fox News Latino reports that Venezuelan officials disclosed Feb. 6, that the government will allow a free-floating exchange rate for the country's battered currency while maintaining a subsidized rate for key imports. The socialist South American government has been struggling to maintain its decade-old currency controls as inflation has soared with heavy public spending, and the black market value of the bolivar has plummeted, according to Fox News Latino. Now the falling price of petroleum is slamming the oil-based economy, the report notes. The report relays that the government sells dollars for the most crucial imports at rates of 6.3 or VEF12, demanding that retailers hold down prices to reflect the subsidies, the report relays. It has also been selling currency at a third rate, around VEF52 to the dollar, but officials said that rate will now be replaced by a more transparent system in which dealers and buyers exchange currency on a supply and demand basis, the report notes. The report adds that Finance Minister Rodolfo Marco Torres said the new system would be "totally free," with "the market itself setting the exchange rate." But officials said trades would have to be made through authorized banks or exchange houses and only people with dollar-denominated bank accounts can take part. As it struggles with a cash crunch, the government has limited the dollars it auctions at any of the rates, and businesses say delays in getting money for imports has fed shortages, the report discloses. The exchange difficulties have driven people to an illegal parallel market where bolivars have been trading at about 190 per dollar, notes the report. The report discloses that the new system announced could allow greater access to dollars, but at a far higher price than legally possible before. Central Bank President Nelson Merentes encouraged Venezuelans living outside the country to use the new system to send money back home. Analysts called the new system an effective devaluation, which most economists agree is needed on a larger scale to right the country's economy, but also said the new system would likely be more tightly regulated than officials suggest, the report relays. With the threat of street protests and a legislative election looming, the government is likely to look for ways to channel scarce dollars to politically sensitive goods and take steps to prevent capital from leaving the country, said Risa Grais-Targow, an analyst at the Washington-based Eurasia Group, the report relates. "I think it will be less flexible because the government's incentives right now are to increase control," Ms. Grais-Targow said, the report adds. ================= X X X X X X X X X ================= AVON: To Cease Operations in 16 Caribbean Territories ----------------------------------------------------- Fox News Latino reports that cosmetics giant Avon has decided to cease operations in 16 Caribbean territories as it works to restore its core business in the United States, a spokeswoman confirmed to EFE. "Avon has announced its decision to cease operations in the Islands markets that fall under U.S. distribution," the firm's manager of external communications, Lindsay Fox, said, according to Fox News Latino. The report notes that Ms. Fox added that the New York-based company "remains committed to focusing its resources on restoring the health of the U.S. business to deliver future growth." Ms. Fox said Avon will no longer accept orders from 16 Caribbean territories after Feb. 20, the report relays. Avon will cease operations in Antigua, Aruba, the Bahamas, Barbados, Belize, Bermuda, Bonaire, Curacao, Dominica, Grand Cayman, Guyana, Haiti, Jamaica, St. Kitts and Nevis, Suriname, and Trinidad and Tobago. "Hawaii, Guam and Saipan, as well as the islands served through Avon Puerto Rico distribution, are unaffected by the closure of these Islands markets," the report quoted Ms. Fox as saying. Founded in 1886, Avon is the largest direct-sale beauty products company in the world, with more than 6.4 million independent sellers operating in upwards of 100 countries. Avon's 2014 financial results showed an 11 percent decline in revenue and losses of $388.6 million. *********** 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 * * *