/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150304.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 Wednesday, March 4, 2015, Vol. 16, No. 044 Headlines A R G E N T I N A ARGENTINA: Testimony in NML's Bond Fight Ordered Unsealed BANCO HIPOTECARIO: Posts ARS550 Million Net Income in 4Q 2014 BUENOS AIRES: S&P Affirms 'CCC-' Rating; Outlook Negative YPF SA: Posts Quarterly Earnings Results B R A Z I L SBM BALEIA: Moody's Cuts Ratings on Sr. Sec. 2027 Notes to 'Ba3' C A Y M A N I S L A N D S ALTERNATIVE INVESTMENT: Commences Liquidation Proceedings ARDON MAROON: Commences Liquidation Proceedings ARDON MAROON MASTER: Commences Liquidation Proceedings BELMONT GLOBAL: Commences Liquidation Proceedings BELMONT SPC: Commences Liquidation Proceedings BROUGHTON CORPORATION: Commences Liquidation Proceedings CHASE CAPITAL: Commences Automatic Liquidation CLOVER INVESTMENT: Court Enters Wind-Up Order ESPIAL CAPITAL: Placed Under Voluntary Wind-Up GEROVA FINANCIAL: Creditors to Hold First Meeting on March 27 GEROVA HOLDINGS: Creditors to Hold First Meeting on March 27 GOODMAN KUNG: Commences Liquidation Proceedings HEDGE FUND: Commences Liquidation Proceedings HORIZON MARINE: Commences Liquidation Proceedings INTEGRATED STRATEGIC: Commences Liquidation Proceedings KIKIN LIMITED: Court to Continue Supervision of Liquidation LAGRANGE CAPITAL: Commences Liquidation Proceedings LEBLON VALUE: Placed Under Voluntary Wind-Up LEBLON VALUE MASTER: Placed Under Voluntary Wind-Up LIMMAT SELECT: Commences Liquidation Proceedings LIONGATE LIQUID: Commences Liquidation Proceedings LIONGATE PAN-LATAM: Commences Liquidation Proceedings LIONGATE TACTICAL: Commences Liquidation Proceedings NEXUS ENERGY: Placed Under Voluntary Wind-Up NEXUS ENERGY SPC: Placed Under Voluntary Wind-Up OFFSHORE CAPITAL: Creditors Hold First Meeting PIONEER IRON: Creditors' Proofs of Debt Due March 5 SERVERTIS FUND I: Placed Under Voluntary Wind-Up SPLENDOR CAPITAL: Commences Liquidation Proceedings VC COMPUTER: Court Enters Liquidation Order C O L O M B I A PACIFIC RUBIALES: Fitch Cuts LT Issuer Default Ratings to 'BB' D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Central Bank Holds Benchmark Rate at 6.25% J A M A I C A JAMAICA: PETCOM Sale Will proceed, Says Minister Paulwell JAMAICA: Bank of Jamaica Reports Slowdown in Demand for Loans T R I N I D A D & T O B A G O FIRST CITIZENS: Names Karen Darbasie as New CEO X X X X X X X X X LATAM: Finance Credits to Face Difficult Conditions, Fitch Says - - - - - ================= A R G E N T I N A ================= ARGENTINA: Testimony in NML's Bond Fight Ordered Unsealed --------------------------------------------------------- Cara Salvatore at Law360.com reports that a Nevada federal magistrate responding to a journalist's request said he will unseal the deposition of a law firm employee at the center of NML Capital Ltd.'s $1.7 billion search for judgment money in its bond fight with the government of Argentina, according to a Thursday, Feb. 19 order. U.S. Magistrate Judge Cam Ferenbach ordered the testimony of MF Corporate Services' Patricia Amunategui to be unsealed -- with redactions of sensitive personal information -- in response to a request by an Argentine journalist who has been investigating potential ties between dozens of Nevada shell corporations and the president of Argentina, according to Law360.com. The report notes that Judge Ferenbach acknowledged the "considerable stress" Amunategui has experienced and will experience because of her role in the ordeal, however. "The difficulties Ms. Amunategui faces are appreciable," the report quoted Judge Ferenbach as saying. "She is not a public figure and not a party to the underlying lawsuit. Nonetheless, she finds herself at the center of a dispute involving $1.7 billion, a hedge fund, and a foreign nation's sovereign-default crisis and a political scandal," Judge Ferenbach added. To prevent the unsealing, Ms. Amunategui would have to show that she would likely be harmed in a particular way and that her interest in privacy overrode the public's interest in disclosure. She was not able to do that, the judge said, the report relates. "These matters cannot be litigated in secret," Judge Ferenbach said, the report relays. "Doing so would limit the public's understanding of the court's final decision and, therefore, risk weakening the judicial power, which depends upon public access and trust," Judge Ferenbach added. The journalist, Jorge Lanata, requested the unsealing in early December. The report relays that Ms. Amunategui has identified herself as the vice president of MFCS, the Nevada outpost of Panama-based law firm Mossack & Fonseca. "We are obviously disappointed," Kent Woods, an attorney for MFCS, said by email, the report says. "There are a few procedural issues left to resolve that are related to that order, and I am hopeful that the people involved will respect the seal until those issues can be worked out," Mr. Woods added. In August, Judge Ferenbach granted NML Capital's request to wrest information from numerous companies that the hedge fund says are hiding $65 million embezzled from Argentina's coffers, ruling against 123 Nevada entities the judge described as shell companies, the report notes. Judge Ferenbach said the companies must hand over information on their finances, or provide a deponent, so that NML can try to find out the location of money that was allegedly embezzled by current Argentine President Cristina Fernandez de Kirchner, her husband, and associate Lazaro Baez, the report discloses. NML is going after Argentine assets for repayment of $1.7 billion in bonds that it has refused to restructure with the now-defaulted country, the report notes. The Argentine government has been investigating the alleged embezzlement of the money since 2013. It apparently came from infrastructure projects, Judge Ferenbach said, the report relates. Judge Ferenbach ordered that an attorney with Mossack & Fonseca, which helped create the companies, or another deponent would have to undergo a deposition in Las Vegas, the report relays. It's not currently clear whether that took place or whether Ms. Amunategui's deposition served instead. A representative for NML declined to comment. NML is represented in the Nevada suit by Dennis Harry Hranitzky of Dechert LLP, and Kirk B. Lenhard and Nikki Baker of Brownstein Hyatt Farber Schreck LLP. MF Corporate Services (Nevada) Ltd. is represented by Kent Woods of Woods Erickson & Whitaker LLP. The 123 entities are represented by Jason Wiley of Kolesar & Leatham. The case is NML Capital Ltd. v. Republic of Argentina, case number 2:14-cv-00492, in the U.S. District Court for the District of Nevada. * * * 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'. BANCO HIPOTECARIO: Posts ARS550 Million Net Income in 4Q 2014 ------------------------------------------------------------- Banco Hipotecario S.A. reported its fourth quarter 2014 results. Total net income for the year was ARS550.0 million, 30.7% higher than ARS421.0 million of 2013. Net income for the fourth quarter was ARS46.3 million, compared to ARS145.3 million and ARS121.3 million of last quarter and same quarter of previous year, respectively. Net financial margin for the year was ARS2,321.5 million and ARS1,629.6 million for 2013. Net financial margin for the quarter was ARS452.1 million, compared to ARS638.1 million of last quarter and ARS532.7 million of same quarter of last year. Aggregated net income from services of ARS1,909.8 million was 56.6% higher than 2013. Net income from services for the quarter was ARS622.3 million 28.8% higher than previous quarter, and 85.5% higher than fourth quarter 2013. Loans to the private sector increased 12.2% in the quarter and 33.0% YoY. Deposits increased 19.2% in the quarter and a 68.4% YoY growth. NPL slightly increased to 2.3% from 2.2% of 2013. Coverage ratio was 95.9%. Equity ratio of 14.0%, compared to 18.9% of 2013. About Banco Hipotecario Banco Hipotecario S.A. provides various banking services in Argentina. It accepts deposit products; and offers loan products comprising mortgage, personal, and SME loans. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 21, 2014, Standard & Poor's Ratings Services affirmed its 'CCC-' foreign currency ratings on Banco Hipotecario S.A., Banco Patagonia S.A., and Banco de Galicia y Buenos Aires S.A. At the same time, S&P affirmed the 'CCC+' local currency ratings on these banks and removed the ratings from CreditWatch with negative implications, where S&P placed them on June 18, 2014. The outlook on the ratings is negative. BUENOS AIRES: S&P Affirms 'CCC-' Rating; Outlook Negative --------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'CCC-' foreign and local currency ratings on the city of Buenos Aires. The outlook remains negative. RATIONALE The creditworthiness of the city of Buenos Aires is constrained by Argentina's "volatile and underfunded" intergovernmental institutional framework, a strained macroeconomic environment and "weak" liquidity levels, although these levels are somewhat compensated by the city's recent issuance of $500 million in senior unsecured notes. On the other hand, the city's "moderate" debt burden, which S&P expects to be about 27% of the city's operating revenues by the end of 2015, "average" budgetary performance with an expected operating surplus of 14%-15% of operating revenues for the next two years despite high inflation, and its "average" budgetary flexibility, with 90% own-source revenues and capital expenditures (capex) of more than 15% of total expenditures, support its creditworthiness. Regardless of factors that influence the city's stand-alone creditworthiness, S&P caps its long-term ratings on Buenos Aires at the same level as the 'CCC-' T&C on Argentina (foreign currency: SD/SD; local currency: CCC+/Negative/C). S&P do so to reflect the likelihood that the sovereign could restrict the domestic entities' access to foreign currency for their debt service obligations. In S&P's view, the city doesn't meet the criteria under which the foreign currency rating on a local or regional government (LRG) could be higher than the related T&C assessment. Due to the cross-default clauses included in some of the city's debt obligations, S&P don't believe it has sufficient liquidity to meet all of its foreign and local currency debt obligations, if a cross-default clause were to be activated amid stagnant macroeconomic conditions after Argentina's selective default on July 30, 2014. Therefore, S&P also caps the local currency rating on the city at 'CCC-'. A weak economy -- low growth, high inflation, a dual exchange rate, and uncertainty over medium-term prospects, which further exacerbate Argentina's volatile and underfunded intergovernmental institutional framework -- limits the creditworthiness on the city of Buenos Aires. Though its GDP per capita is high for Argentina, the city's economy is subject to the same limited growth prospects and volatile performance as the national economy. The low economic growth, which S&P expects this year and next, will present challenges to the city's weak financial management. Mauricio Macri of the center-right Propuesta Republicana (PRO) political party was reelected as mayor on July 10, 2011. During his second term, Macri oversaw reforms to gradually increase revenues amid increasing expenditure demands due to inflation, new expenditure needs, and the limited external financing access that has been characteristic of entities operating in Argentina. However, the relations between the city government and the federal government have been fractious given that the mayor is the leader of one of the main opposition parties and a key presidential candidate in the 2015 elections. As Macri is illegible to run for a third term in 2015, it remains unclear if the PRO party will once again win the mayoral elections. The city of Buenos Aires has historically maintained a solid budgetary performance. In 2014, the city had a high operating surplus of 16.4% of operating revenues and a deficit after capital accounts of 2.6% of total revenues. However, S&P expects some volatility due to still high inflation and the upcoming local and national elections. In 2015, S&P expects an operating surplus of about 14.6% of operating revenues and a deficit after capital accounts of about 3% of total revenues. The city's moderate debt burden underpins the city's creditworthiness. S&P expects its debt level to be about 27% of operating revenues by the end of 2015. Although the city managed to issue a $500 million bond in international capital markets in February 2015, S&P expects this will only temporarily increase the city's total debt relative to operating revenues, given that Buenos Aires faces a $475 million bond amortization on April 6, 2015. Nevertheless, Buenos Aires' debt burden could be potentially volatile given that about 99% of it is denominated in foreign currency. Given that the city generates about 90% of its operating revenues and its capex of more than 15% of total expenditures, it has ample budgetary flexibility. However, due to the recent extensive tax reforms, S&P believes that it has limited leeway in further raising taxes given their high political cost during an election year. Additionally, similar to other LRGs in Argentina, the city of Buenos Aires is subject to ongoing public-sector wage increase demands because of high inflation. S&P believes that these demands will continue to pressure the city's operating expenditures over the next two years, hampering its ability to cut expenditures. Buenos Aires has "moderate" contingent liabilities. Its largest asset is its fully owned bank, Banco de la Ciudad de Buenos Aires. The city guarantees the bank's liabilities under its statuary terms. During the past five years, the bank has been strengthening its financial profile thanks to good asset quality and improved solvency. Liquidity Overall, the city's liquidity is "weak" because its estimated free cash and reserves are insufficient to cover the 2015 projected debt service. In addition, the city has large upcoming external debt amortizations -- for $475 million in April 2015 and for $415 million in 2017 -- which will add volatility to its liquidity levels. Furthermore, because almost all of its debt is denominated in foreign currency (about 99%), it will also add volatility to the city's debt service due to the volatile exchange rate in Argentina. S&P estimates the city's debt service in 2015 will be about ARP7.8 billion. S&P also estimates that the city has free cash of about ARP817 million, covering only about 10.5% of the estimated 2015 debt service. However, the city's recent $500 million bond issuance will cover the $475 million bond amortization in April. Outlook The negative outlook reflects the potential implications that further restrictions to foreign currency access could have on the city's ability to continue to pay its debt service in a timely manner amid limited external financing due to the sovereign's selective default in 2014. S&P could lower the ratings on the city if it perceives the central government might further tighten its exchange control regime, which could impair the city's ability to service its foreign currency debt. On the other hand, S&P could raise its ratings if the risks of the sovereign's limited access to foreign currency diminish. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee's assessment of the key rating factors is reflected in the Ratings Score Snapshot. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. RATINGS LIST Ratings Affirmed Buenos Aires (City of) Issuer Credit Rating CCC-/Negative/-- Senior Unsecured CCC- YPF SA: Posts Quarterly Earnings Results ---------------------------------------- The Legacy reports that YPF SA released its earnings data on March 27. American Banking and Market News said that the company reported $0.41 earnings per share for the quarter, missing the analysts' consensus estimate of $0.75 by $0.34, according to The Legacy. The report notes that a number of research firms have recently commented on YPF. Analysts at JPMorgan Chase & Co. reiterated a "hold" rating and set a $30.00 price target (down previously from $41.00) on shares of YPF SA in a research note on Tuesday, February 3, the report relays. Analysts at Deutsche Bank downgraded shares of YPF SA to a "hold" rating and set a $31.00 price target on the stock in a research note on Monday, January 5, the report recalls. Finally, analysts at Zacks downgraded shares of YPF SA from an "outperform" rating to a "neutral" rating and set a $28.80 price target on the stock in a research note on Thursday, January 1, the report relays. Five equities research analysts have rated the stock with a hold rating and one has issued a buy rating to the company, the report discloses. The company currently has a consensus rating of "Hold" and an average target price of $29.93, the report adds. YPF SA is an energy company, operating a fully integrated oil and gas chain with leading market positions across the domestic upstream and downstream segments. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2015, Fitch Ratings rates YPF S.A.'s (YPF) reopening of the company's 2018 and 2024 notes by up to USD750 million 'CCC'. The company's rated notes with maturity dates of December 2018 and April 2024 notes total, before the reopening, USD587 million and USD1 billion respectively. The 2024 notes have a 10-year maturity with amortizations in years eight (30%), nine (30%) and 10 (40%). The 2018 notes have a bullet maturity. =========== B R A Z I L =========== SBM BALEIA: Moody's Cuts Ratings on Sr. Sec. 2027 Notes to 'Ba3' ---------------------------------------------------------------- Moody's Investors Service (Moody's) downgraded the ratings of the senior secured notes of the following issuers: SBM Baleia Azul, SII/ S.a.r.l. -- Senior secured global notes due September 2027 downgraded to Ba3 from Ba1 -- Approximately US$400 million of debt affected Lancer Finance Company (SPV) Limited -- Senior secured global notes due July 2016 downgraded to B1 from Ba1 -- Approximately US$80 million of debt affected Schahin II Finance Company (SPV) Limited -- Senior secured global notes due September 2022 downgraded to B1 from Ba1 -- Approximately US$675 million of debt affected QGOG Atlantic / Alaskan Rigs Limited -- Senior secured global notes due July 2018 downgraded to B1 from Ba1 -- Approximately US$372 million of debt affected Odebrecht Drilling Norbe VIII/IX Ltd. -- Senior secured global notes due June 2021 downgraded to B2 from Ba1 -- Approximately US$1.275 billion of debt affected Odebrecht Offshore Drilling Finance Limited -- 6.75% and 6.625% senior secured global notes due in October 2022 downgraded to B2 from Ba1 -- Approximately US$ 2.151 billion of debt affected (US$ 2.122 billion after March 2nd) All ratings remain on watchlist under review for possible downgrade. Moody's actions reflect the increased liquidity risk associated with the deteriorating credit profile of Petroleo Brasileiro S.A. ('Petrobras') (Ba2/On Review), the sole contractual off-taker and revenue source to service the outstanding debt issued by the above referenced entities. On Feb. 24, 2015 Moody's downgraded all ratings for Petrobras (including debts rated based on Petrobras' guarantee), including a downgrade of the company's senior unsecured debt to Ba2 from Baa3, and assigned a Ba2 Corporate Family Rating (CFR) to the company. Moody's also lowered the company's Baseline Credit Assessment (BCA) to b2 from ba2. All Petrobras' ratings remain on review for downgrade. Petrobras' rating downgrade reflects continued concerns about the potential impacts of the on-going corruption investigations as well as significant liquidity pressures that could arise as a consequence of Petrobras' failure to provide timely financial statements. Petrobras' debt agreements include covenants for the provision of financial statements. Extended delays in providing financial statements pose the risk that creditors may take actions that could eventually lead to payment acceleration. For a more detailed discussion of the recent Petrobras rating action, please refer to Moody's press release 'Moody's downgrades Petrobras' ratings to Ba2; maintains review for downgrade', dated Febr. 24, 2015. The rating actions on the issuers also take into account, on a relative basis, the vessels' recent operating performance in 2013 and 2014 as measured by average uptime, the age and value of the vessels, chartered daily rates as compared to current market daily rates, maturity of the outstanding debt, re-contracting risk, liquidity arrangements as measured by level of reserve accounts, and the potential impact on the issuers as a result of the corruption investigations at the off taker's and sponsors' level, where applicable. Moody's do not anticipate upward pressure in the near to medium term. The review of the issuers' ratings will continue to focus on a number of credit factors including: (i) any further deterioration of Petrobras' ratings, (ii) Petrobras' production and exploration strategy amid weakening sector fundamentals due to falling oil prices and other developments, and how the vessels fit into Petrobras' strategy, (iii) uncertainties due to the on-going corruption investigations, (iv) financial and operating performance, (v) legal constructs, and (vi) the risk that bondholders may accelerate a material amount of debt if Petrobras does not produce audited financial statements in a timely basis. In case of negative outcomes related to the ongoing corruption investigations at Petrobras and/or certain issuers' sponsors, the review will assess the ability of the issuers' sponsors to renew its contracts or continue to provide services to Petrobras pursuant to their respective executed charter and services agreements. Moody's also expect that re-chartering risk will be exacerbated by lower market-based daily rates caused by falling oil prices worldwide. T he review will also assess whether further differentiation among the issuers ratings is deemed necessary based on the specifics of each transaction on an individual as well as on a relative basis. SBM Baleia Azul, SII/ S.a.r.l. The downgrade reflects primarily the further deterioration of the credit risk profile of Petrobras, the sole contractual off-taker and revenue source to service the outstanding Notes. In addition, falling oil prices on a worldwide basis impact the value of the Project asset, FPSO Cidade de Anchieta (the "vessel"), a key piece of the security package. The change in economic fundamentals could dampen demand for FPSOs on a worldwide basis, thereby impacting the ability to re-contract the vessel in the extreme case that the charter and services agreements are terminated prior to debt maturity. Notwithstanding, it is Moody's view that FPSOs present lower operating and technology risk than drilling rigs. The Notes are secured on a senior basis by the revenues received from the Charter Agreement with Petrobras for the use of the FPSO Cidade de Anchieta. The rating incorporates the debt structure which fully amortizes three years prior to the end of the Petrobras Charter Agreement, the stable and strong cash flow generation capability of the asset evidenced by historically high average uptimes absent negative potential developments related to Petrobras. Revenues stemming from the associated Services Agreement between Petrobras and SBM do Brasil are not pledged to the Notes' investors. The Notes are also secured by a first priority mortgage on the vessel as well as the pledge of shares of the Issuer and by all transaction accounts, as is customary in this type of transaction. Lancer Finance Company (SPV) Limited The transaction is based on the charter agreement for the use of the S.C. Lancer drilling vessel between Petrobras and Turasoria S.A., L.L.C.. Under the agreement, Petrobras pays the lessor a daily rate irrespective of whether the vessel is actively drilling, is engaged in another activity such as moving to another job site, waiting to get a drilling assignment, or is unable to operate due to bad weather. The issuer will service the debt on the notes according to a schedule that comprises pre-defined interest payments and target principal amortization until the expected repayment of the Notes in June 2016. The ratings also take into account the relatively short time until the final maturity of the Notes (July 2016), with no re- contracting risk at maturity. Notwithstanding, the ratings are somewhat constrained by the relatively limited transparency practices at the holding and operator levels when compared to its rated peers. Schahin II Finance Company (SPV) Limited Schahin II Finance Company (SPV) Limited ("the Issuer"), is a special purpose company established in the Cayman Islands, the activities of which are limited to the issuance and the repayment of the Notes. Dleif Drilling LLC., the owner of the vessel ("the Owner"), is a Delaware limited liability company, the activities of which are limited solely to owning and chartering the vessel. Schahin P&G is the operator of Sertao, as well as of a sister drilling vessel called the Cerrado, for which net revenues at the bottom of its waterfall are pledged to this transaction to help support the payments of the outstanding debt of the Issuer. Schahin P&G is wholly owned by Schahin through Schahin Holding S.A. The Notes were issued in 2012, and are due in September 2022. The vessel chartered to Petrobras has presented operational performance that exceeds Moody's original base case projections. Notwithstanding, the transaction has been structured to include a gross balloon payment of approximately US$219 million at maturity (September 2022), which is reduced to a net balloon of US$109.5 million when considering the cash trapping mechanism in the three years prior to debt maturity. Despite the option to extend the charter agreement for additional 10 years, the ratings are further constrained by the transaction's inherent re-contracting risk which is further potentially impacted by developments at Petrobras, in addition to the relatively limited transparency practices at the holding and operator levels when compared to its rated peers. QGOG Atlantic / Alaskan Rigs Limited QGOG Atlantic / Alaskan Rigs Limited, ("QGOG A/A" or the "Issuer") is a special purpose vehicle organized under the laws of the British Virgin Islands. The Issuer is jointly owned in equal parts by Alaskan Star Ltd (BVI) and Star International Drilling Ltd (Cayman Islands), both of which are wholly owned by Hopelake Services Limited (BVI). The Alaskan Star and the Atlantic Star are mid-water drilling moored rigs. Both rigs are currently operating in Brazil under charter with Petrobras, with the charter agreement for the Alaskan Star ending November 2016, while the charter agreement for the Atlantic Star will end in July 2018. The US$700 million senior secured notes were issued by QGOG A/A in July 2011, and are due in July 2018, with a relatively small gross balloon payment of US$49.3 million, which Moody's expect that at maturity will be fully covered with funds captured through the retention mechanisms and letters of credit. Both Alaskan Star and Atlantic Star have demonstrated strong operating performance above Moody's original base case projections for these type of vessels (drilling rigs). Notwithstanding, despite the relatively small gross balloon payment at maturity, re-contracting risk is exacerbated by charter daily rates that are only marginally below current market daily rates. Odebrecht Drilling Norbe VIII/IX Ltd. Odebrecht Drilling Norbe VIII/IX Limited is a wholly-owned subsidiary of Odebrecht Oil and Gas S.A. ("OOG" or the "Company", not rated), organized as a limited liability company under the laws of the Cayman Islands. The activities of Odebrecht Drilling Norbe VIII/IX Limited are limited to the issuance of the Notes and making the corresponding loan to each of the Project Companies, Odebrecht Drilling Norbe Eight Gmbh and Odebrecht Drilling Norbe Nine Gmbh, domiciled in Austria which own, respectively, the vessels Norbe VIII and Norbe IX. Each of the Project companies has a 10-year Charter Agreement with Petrobras, which began at the start of operation of each drilling vessel (2011) under which Petrobras pays a contracted daily rate for the use of each vessel. Both the Charter and the Services Agreements signed with Petrobras are extendable, upon mutual agreement between OOG and Petrobras, for additional 10 years at the end of the original expiration. During the assessed period (2013/2014), Norbe VIII presented average uptime performance significantly below Moody's original base case projections. This contrasts with the very strong operating performance of Norbe IX. The transaction has been structured to include a gross balloon payment of approximately US$450 million at maturity (June 2021), which is reduced to a still relatively large net balloon of US$225 million when considering the cash trapping mechanism in the three years prior to debt maturity embedded in the transaction structure. Odebrecht Offshore Drilling Finance Limited Odebrecht Offshore Drilling Finance Limited ("OODFL" or "Issuer") is an exempted company organized under the laws of the Cayman Islands, indirectly owned by Odebrecht Oil and Gas (not rated). The transaction consists of the securitization of future flows of the Charter and Services Agreements between Petrobras and ODN I GmbH and ODN Six GmbH, which solely own OODFL, associated with a state-of--the-art, brand new 3-asset portfolio: two drillships ODN I and ODN II, and one semisubmersible rig, Norbe VI. On February 14, 2014 OODFL completed a $580 million note offering, which added ODN Tay IV, a semisubmersible rig to the collateral package. ODN Tay IV is a fifth generation ultra-deepwater, purchased by OOG in 2011, at which time it was operating in Nigeria for Total SA by Stena Drilling. The ratings of OODFL are constrained by the differing uptime performance among its 4-asset portfolio with ODN1 and Tay IV lagging behind, posing pressure on the issuer's ability to service debt. The ratings are further constrained by a relatively large net balloon payment at debt maturity, which is somewhat offset by a relatively low re-contracting risk given average chartered daily rates significantly below market daily rates. The principal methodology used in these ratings was Generic Project Finance Methodology published in December 2010. ========================== C A Y M A N I S L A N D S ========================== ALTERNATIVE INVESTMENT: Commences Liquidation Proceedings --------------------------------------------------------- On Jan. 2, 2015, the sole shareholder of Alternative Investment Solutions 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: Margaret Thompson Telephone: (345) 916 5628 10 Market Street, Suite 140 Camana Bay Grand Cayman KY1-9006 Cayman Islands ARDON MAROON: Commences Liquidation Proceedings ----------------------------------------------- On Dec. 30, 2014, the shareholders of Ardon Maroon Asia Dragon Feeder Fund resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: David Griffin c/o Richard Gardner Telephone: +1 (345) 743 6830 e-mail: richard.gardner@fticonsulting.com FTI Consulting (Cayman) Ltd. 2D Landmark Square, 64 Earth Close P.O. Box 30613 Grand Cayman KY1-1203 Cayman Islands ARDON MAROON MASTER: Commences Liquidation Proceedings ------------------------------------------------------ On Dec. 30, 2014, the shareholders of Ardon Maroon Asia Master Fund resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: David Griffin c/o Richard Gardner Telephone: +1 (345) 743 6830 FTI Consulting (Cayman) Ltd. 2D Landmark Square, 64 Earth Close P.O. Box 30613 Grand Cayman KY1-1203 Cayman Islands BELMONT GLOBAL: Commences Liquidation Proceedings ------------------------------------------------- On Dec. 31, 2014, the sole shareholder of Belmont Global SPC 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: Stratus FOHF Liquidation Services Ltd Vincenti Buildings 29/19 (Suite 1163) Straight Street Valletta, VLT 1432 Malta c/o Armand van Houten Telephone: + 356.2546.6066 BELMONT SPC: Commences Liquidation Proceedings ---------------------------------------------- On Dec. 31, 2014, the sole shareholder of Belmont SPC 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: Stratus FOHF Liquidation Services Ltd Vincenti Buildings 29/19 (Suite 1163) Straight Street Valletta, VLT 1432 Malta c/o Armand van Houten Telephone: + 356.2546.6066 BROUGHTON CORPORATION: Commences Liquidation Proceedings -------------------------------------------------------- At an extraordinary meeting held on Dec. 22, 2014, the members of Broughton Corporation resolved to voluntarily liquidate the company's business. Only creditors who were able file their proofs of debt by Feb. 12, 2015, will be included in the company's dividend distribution. The company's liquidator is: Philip Mosely Harbour Centre, Ground Floor P.O. Box 1569 42, North Church Street George Town Grand Cayman KY1-1110 Cayman Islands Telephone: +1 (345) 949 4018 Facsimile: +1 (345) 949 7891 e-mail: general@caymanmanagement.ky CHASE CAPITAL: Commences Automatic Liquidation ---------------------------------------------- Chase Capital Partners Private Equity Fund of Funds II, Ltd. commenced automatic liquidation as per Article 149 of the Memorandum and Articles of Association. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Trident Liquidators (Cayman) Ltd c/o Lisa Thoppil One Capital Place, 4th Floor P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands Telephone: (345) 949 0880 Facsimile: (345) 949 0881 CLOVER INVESTMENT: Court Enters Wind-Up Order --------------------------------------------- On Dec. 11, 2014, the Grand Court of the Cayman Islands entered an order to wind up the operations of Clover Investment Advisors Ltd. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidators are: Michael Pearson Andrew Childe Fund Solution Services Limited Harbour Centre, 2nd Floor 42 North Church Street, Grand Cayman Cayman Islands Telephone: +1 (345) 947 5855 ESPIAL CAPITAL: Placed Under Voluntary Wind-Up ---------------------------------------------- On Dec. 31, 2014, the sole shareholder of Espial Capital Partners Offshore, Ltd 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: Espial Capital Management, LLC c/o Jonathan Turnham Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 GEROVA FINANCIAL: Creditors to Hold First Meeting on March 27 ------------------------------------------------------------- The creditors of Gerova Financial Group Limited will hold their first meeting on March 27, 2015, at 10:00 a.m. Proxy forms for the meeting must be lodged with the company's liquidators by March 26, 2015. The company's liquidators are: Charles Thresh Mike Morrison KPMG Advisory Limited Crown House, 4 Par-la Ville Road Hamilton HM 08 Bermuda GEROVA HOLDINGS: Creditors to Hold First Meeting on March 27 ------------------------------------------------------------ The creditors of Gerova Holdings Limited will hold their first meeting on March 27, 2015, at 11:30 a.m. Proxy forms for the meeting must be lodged with the company's liquidators by March 26, 2015. The company's liquidators are: Charles Thresh Mike Morrison KPMG Advisory Limited Crown House, 4 Par-la Ville Road Hamilton HM 08 Bermuda GOODMAN KUNG: Commences Liquidation Proceedings ----------------------------------------------- On Dec. 30, 2014, the shareholders of Goodman Kung Yip Investments No.2 resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Feb. 19, 2015, will be included in the company's dividend distribution. The company's liquidator is: A. Lawson P.O. Box 493 Grand Cayman KY1-1106 Cayman Islands c/o Jenna Nicholson Telephone: +1 345-4494 Facsimile: +1 345-949-7164 Century Yard, 2nd Floor, Cricket Square Elgin Avenue, Grand Cayman Cayman Islands Telephone: +1 (345) 949-4800 Facsimile: +1 (345) 949-7164 HEDGE FUND: Commences Liquidation Proceedings --------------------------------------------- On Dec. 16, 2014, the members of Hedge Fund Ventures Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Feb. 16, 2015, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 89 Nexus Way Camana Bay, Grand Cayman KY1-1205 Cayman Islands HORIZON MARINE: Commences Liquidation Proceedings ------------------------------------------------- On Jan. 2, 2015, the sole shareholder of Horizon Marine Construction 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: Quinn J. Hebert Cal Dive Offshore Contractors, Inc Telephone: (713) 361-2600 Facsimile: (713) 586-7338 2500 CityWest Blvd. Suite 2200, Houston Texas 77042 USA INTEGRATED STRATEGIC: Commences Liquidation Proceedings ------------------------------------------------------- On Dec. 19, 2014, the shareholders of Integrated Strategic Funds Limited resolved to voluntarily liquidate the company's business. The company's liquidator is: Christopher Smith Krys & Associates Cayman Ltd 23 Lime Tree Bay Avenue Governors Square Building 6, 2nd Floor P.O. Box 31237, Grand Cayman KY1-1205 Cayman Islands KIKIN LIMITED: Court to Continue Supervision of Liquidation ----------------------------------------------------------- On Dec. 9, 2014, the Grand Court of the Cayman Islands entered an order to continue its supervision of Kikin Limited's liquidation. The company's liquidator is: Alyson Reilly Krys Global, Governors Square Building 6, 2nd Floor, 23 Lime Tree Bay Avenue P.O. Box 31237 Grand Cayman KY1-1205 c/o Evette Burnell Telephone: +1 (345) 947 4700 e-mail: evette.burnell@krys-global.com LAGRANGE CAPITAL: Commences Liquidation Proceedings --------------------------------------------------- On Dec. 29, 2014, the shareholders of Lagrange Capital Partners Offshore Fund Ltd resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Feb. 16, 2015, will be included in the company's dividend distribution. The company's liquidator is: A. Lawson P.O. Box 493 Grand Cayman KY1-1106 Cayman Islands c/o Jenna Nicholson Telephone: +1 345-4494 Facsimile: +1 345-949-7164 Century Yard, 2nd Floor, Cricket Square Elgin Avenue, Grand Cayman Cayman Islands Telephone: +1 (345) 949-4800 Facsimile: +1 (345) 949-7164 LEBLON VALUE: Placed Under Voluntary Wind-Up -------------------------------------------- On Dec. 29, 2014, the sole shareholder of Leblon Value Hedge Fund Ltd. 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: Leblon Equities Gestao De Recursos Ltda. c/o Jonathan Turnham Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands LEBLON VALUE MASTER: Placed Under Voluntary Wind-Up --------------------------------------------------- On Dec. 29, 2014, the sole shareholder of Leblon Value Hedge Master Fund Ltd. 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: Leblon Equities Gestao De Recursos Ltda. c/o Jonathan Turnham Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands LIMMAT SELECT: Commences Liquidation Proceedings ------------------------------------------------ On Dec. 31, 2014, the sole shareholder of Limmat Select Plus 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: Stratus FOHF Liquidation Services Ltd Vincenti Buildings 29/19 (Suite 1163) Straight Street Valletta, VLT 1432 Malta c/o Armand van Houten e-mail: info@stratus.com.mt Telephone: + 356.2546.6066 LIONGATE LIQUID: Commences Liquidation Proceedings -------------------------------------------------- On Dec. 17, 2014, the sole shareholder of Liongate Liquid Opportunities Fund resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Feb. 19, 2015, will be included in the company's dividend distribution. The company's liquidator is: Peter Goulden Mourant Ozannes Cayman Liquidators Limited Mourant Ozannes Attorneys-at-Law for the Company Reference: NDL 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands Telephone: (+1) 345 949 4123 Facsimile: (+1) 345 949 4647 LIONGATE PAN-LATAM: Commences Liquidation Proceedings ----------------------------------------------------- On Dec. 17, 2014, the sole shareholder of Liongate Pan-Latam Fund resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Feb. 19, 2015, will be included in the company's dividend distribution. The company's liquidator is: Peter Goulden Mourant Ozannes Cayman Liquidators Limited Mourant Ozannes Attorneys-at-Law for the Company Reference: NDL 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands Telephone: (+1) 345 949 4123 Facsimile: (+1) 345 949 4647 LIONGATE TACTICAL: Commences Liquidation Proceedings ---------------------------------------------------- On Dec. 17, 2014, the sole shareholder of Liongate Tactical Opportunity Fund resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Feb. 19, 2015, will be included in the company's dividend distribution. The company's liquidator is: Peter Goulden Mourant Ozannes Cayman Liquidators Limited Mourant Ozannes Attorneys-at-Law for the Company Reference: NDL 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands Telephone: (+1) 345 949 4123 Facsimile: (+1) 345 949 4647 NEXUS ENERGY: Placed Under Voluntary Wind-Up -------------------------------------------- On Dec. 31, 2014, the sole shareholder of Nexus Energy Partners Fund Ltd 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: Nexus Asset Management LLC c/o Jonathan Turnham Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands NEXUS ENERGY SPC: Placed Under Voluntary Wind-Up ------------------------------------------------ On Dec. 31, 2014, the sole shareholder of Nexus Energy Partners SPC Ltd 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: Nexus Asset Management LLC c/o Jonathan Turnham Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands OFFSHORE CAPITAL: Creditors Hold First Meeting ---------------------------------------------- The creditors of Offshore Capital Limited held their first meeting on Feb. 17, 2015. The company commenced wind-up proceedings on Dec. 11, 2014. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Andrew Childe c/o Trudy-Ann Scott Fund Solution Services Harbour Centre, 2nd Floor 42 North Church Street George Town Cayman Islands Telephone: +1 (345) 947 5855 PIONEER IRON: Creditors' Proofs of Debt Due March 5 --------------------------------------------------- The creditors of Pioneer Iron & Steel Group Company Ltd. are required to file their proofs of debt by March 5, 2015, to be included in the company's second and final dividend distribution. The company's liquidator is: Roderick Sutton c/o FTI Consulting The Center, Level 22 99 Queen's Road Central Hong Kong SERVERTIS FUND I: Placed Under Voluntary Wind-Up ------------------------------------------------- On Dec. 30, 2014, the sole shareholder of Servertis Fund I Ltd. 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: Zais Group, LLC c/o Jonathan Turnham Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 Ogier89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands SPLENDOR CAPITAL: Commences Liquidation Proceedings --------------------------------------------------- On Dec. 29, 2014, the sole shareholder of Splendor Capital Management resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Feb. 19, 2015, will be included in the company's dividend distribution. The company's liquidator is: Peter Goulden Mourant Ozannes Cayman Liquidators Limited Mourant Ozannes Attorneys-at-Law for the Company Reference: NDL 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands Telephone: (+1) 345 949 4123 Facsimile: (+1) 345 949 4647 VC COMPUTER: Court Enters Liquidation Order ------------------------------------------- On Dec. 2014, the Grand Court of the Cayman Islands entered an order to liquidate the business of VC Computer Holdings Limited. The company's liquidators are: K. Beighton A. Lawson KPMG P.O. Box 493, Century Yard Cricket Square, Grand Cayman KY1-1106 Telephone: (345) 914-4465 Facsimile: (345) 949-7164 =============== C O L O M B I A =============== PACIFIC RUBIALES: Fitch Cuts LT Issuer Default Ratings to 'BB' -------------------------------------------------------------- Fitch Ratings has downgraded Pacific Rubiales Energy Corp. (Pacific Rubiales) foreign and local long-term Issuer Default Ratings (IDRs) to 'BB' from 'BB+'. Fitch has also downgraded to 'BB' from 'BB+' its long-term rating on Pacific Rubiales' outstanding senior unsecured debt issuances totaling approximately US$4 billion with final maturities in 2019 through and 2025. Additionally, Fitch has revised the Rating Outlook to Negative from Stable. The downgrade reflects the negative effect the decline in oil prices have on Pacific Rubiales' credit profile. Medium and long- term production and reserve replacement will likely be affected by the steep decrease in prices seen in recent months. This in turn will force Pacific Rubiales to reduce capital expenditures significantly. Pacific Rubiales credit metrics will also deteriorate in 2015 and 2016; leverage, as measured by total-debt to EBITDA for the next two years would rise to or above 4.0x under Fitch's revised price deck for WTI oil prices of $50/bbl for 2015 and $60/bbl for 2016. The Outlook revision to Negative reflects further potential long- term effects the reduction in capex may have on the company's ability to replace the production from the Pirir-Ruibiales field with new fields. Fitch's previous base case assumed that the Pirir-Rubiales field, which accounts for approximately 35% of Pacific Rubiales' total production, reverts back to Ecopetrol in the middle of 2016 and that Pacific Rubiales production declines in 2017 as a result of this. The decrease in production in light of Fitch's revised price deck could be more severe than initially anticipated given the capex reduction Pacific Rubiales will have to implement over the next two years. Under Fitch's price deck assumption for 2015, Pacific Rubiales' liquidity position will be pressured but would still be manageable. Further price decreases could trigger covenants embedded in Pacific Rubiales' indebtedness. As of Sep. 30, 2014, Pacific Rubiales reported $478 million of cash on hand and approximately $158 million of short-term debt and the remaining debt had a manageable amortization schedule. Fitch estimates Pacific Rubiales' FCF would break even at oil prices of between $60/bbl-$65/bbl for the next 24 months. This assumes cash costs are successfully cut per barrel by 15% and capex trimmed back to $1 billion/year. Under this scenario, Pacific Rubiales' net leverage would range between 3.2x and 4.2x. If current prices of $50/bbl are sustained for the next 24 months, EBITDA margins could decrease to the low 20% level, FCF would turn negative and leverage could reach 6.0x-7.0x and result in further negative rating actions. RATING SENSITIVITIES A negative rating action would be triggered by any combination of the following events: -- A sustained leverage above 3.5x, which could be driven by either a decrease in production as a result of capex curtailment or persistent low oil prices; -- A significant reduction in the reserve replacement ratio could affect Pacific Rubiales' credit quality given the current relatively low proved reserve life of approximately 8.3 years A positive rating action is unlikely in the medium term. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Central Bank Holds Benchmark Rate at 6.25% -------------------------------------------------------------- Dominican Today reports that Dominican Republic's Central Bank said the Monetary Board will keep its benchmark 6.25% per annum interest rate unchanged. It said the decision resulted from an analysis of the outlook and the balance of risks on inflation projections, according to Dominican Today. "In that regard, despite that the inter-annual inflation was only 1.16% in January, a rate below this year's target of 4.0% ñ 1%, projections continue to indicate that in the monetary policy horizon, inflation will converge to its medium-term objective," the report quoted the Central Bank as saying. ============= J A M A I C A ============= JAMAICA: PETCOM Sale Will proceed, Says Minister Paulwell --------------------------------------------------------- RJR News reports that the Jamaican Government is proceeding with the sale of PETCOM, a state-owned company which operates several petrol stations, despite objections from the Parliamentary Opposition. In a statement, Robert Montague, Opposition Spokesman on Energy, said the divestment of PETCOM should not proceed, according to RJR News. The report says Mr. Montague argued that PETCOM brings balance and equilibrium to the petroleum retail trade and is a profitable entity. However, in a response to the Financial Report, Energy Minister Phillip Paulwell said a formal invitation for tenders to purchase the company will be announced soon, the report notes. The report discloses that Mr. Paulwell explained that PETCOM has been on the auction block since 2005, and over the past two years there has been renewed effort to complete the sale. Mr. Paulwell said the sale will be done via a competitive and transparent process, the report relays. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 23, 2015, Fitch Ratings has affirmed Jamaica's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'B-'. The issue ratings on Jamaica's senior unsecured foreign and local currency bonds are also affirmed at 'B-'. The Rating Outlooks on the long-term IDRs are revised to Positive from Stable. The Country Ceiling is affirmed at 'B' and the short-term foreign currency IDR at 'B'. JAMAICA: Bank of Jamaica Reports Slowdown in Demand for Loans ------------------------------------------------------------- RJR News, citing data provided by the Bank of Jamaica, reports that there was a slowdown in the demand for loans during the final three months of 2014. The outturn for the December quarter reflected a decline in foreign currency loans, a continuation of the trend observed since December 2012, as well as slower growth in domestic currency loans, according to RJR News. The report notes that the results for the quarter were consistent with lenders' expectations. The central bank said the deceleration in the annual growth of credit was reflected in loans extended to households and business lending, the report relates. Stronger growth in loans was only recorded for the distribution and tourism sectors, within the business lending category, the report says. In the "Personal and Other" lending category, the slower growth was reflected in both personal loans and lending to overseas residents, the report discloses. Personal loans reflected a slower pace of growth in mortgage, term and instalment loans, as well as net repayments of loans for insurance premiums and miscellaneous needs, the report adds. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 23, 2015, Fitch Ratings has affirmed Jamaica's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'B-'. The issue ratings on Jamaica's senior unsecured foreign and local currency bonds are also affirmed at 'B-'. The Rating Outlooks on the long-term IDRs are revised to Positive from Stable. The Country Ceiling is affirmed at 'B' and the short-term foreign currency IDR at 'B'. ================================ T R I N I D A D & T O B A G O ================================ FIRST CITIZENS: Names Karen Darbasie as New CEO ----------------------------------------------- Trinidad Express reports that First Citizens Bank Limited has appointed former Citibanker Karen Darbasie to fill the post of chief executive officer of majority state-owned bank. In a statement sent to all staff, First Citizens executive chairman Anthony Smart said that Ms. Darbasie had accepted the bank's offer "to assume the position of group chief executive officer with effect from April 7, 2015," according to Trinidad Express. The report notes that Mr. Smart explained that Ms. Darbasie has 21 years' experience in the financial services industry and held the position of country treasurer and local market head of Citibank (Trinidad & Tobago) Ltd and managing director of Citicorp Merchant Bank Ltd. In December, former chief executive Larry Nath resigned with immediate effect, the report recalls. Mr. Nath had been under pressure over the course of last year following the bank's Initial Public Offering (IPO) and negative fallout, the report relates. The report says Mr. Nath had said he was leaving the bank to pursue other career choices and a "cooling off period" was negotiated between himself and the bank. In January, the bank appointed Jason Julien, the former general manager of subsidiary First Citizens Investment Services (FCIS), as its deputy chief executive of Bank Operations, the report relays. Julien and Sharon Christopher share deputy chief executive titles. Julien is the deputy chief executive of bank operations while holds the position of deputy chief executive of Corporate Administration, the report notes. In the past few months, the bank's chairman Anthony Smart has functioned as executive chairman and was advised by retired Citibanker Steve Bideshi, the report says. About First Citizens Bank First Citizens Bank Limited is headquartered in Port of Spain, Trinidad and Tobago, and is 82.64% owned by the Republic. The bank reported total consolidated assets of TT$ 35.8 billion (US$ 5.6 billion) and shareholders' equity of TT$6 billion (US$ 945 million) as of March 31, 2014. * * * As reported in the Troubled Company Reporter-Latin America on May 27, 2014, Moody's Investors Service has downgraded First Citizens Bank Limited (FCBL) standalone bank financial strength rating (BFSR) to D+ from C-, lowering the baseline credit assessment (BCA) to baa3 from baa1. The outlook has been revised to stable from negative. ================= X X X X X X X X X ================= LATAM: Finance Credits to Face Difficult Conditions, Fitch Says --------------------------------------------------------------- Latin American leveraged finance credits are expected to face challenging conditions in 2015 due to weak economic growth in the region, according to Fitch Ratings. "Fitch anticipates multiple downward rating actions in 2015 within its portfolio of rated high-yield Latin American corporates," said Joe Bormann, Managing Director at Fitch. "Default risk is at a high point with 13% of leveraged finance corporates in Latin America having a rating of 'CCC' or lower. Brazil is at the forefront of the negativity with a high degree of pressure on construction companies, as well as sugar and ethanol producers." Refinancing risk is currently elevated for small, high-yield corporates rated 'B+' or lower that issue bonds of less than $400 million. Volatility in the market during 2014 led investors to seek benchmark-sized bonds with secondary market liquidity. Posadas is the only small, high-yield issuer with a bond falling due in 2015. Arendal ($80 million), Bio-PAPPEL ($250 million), Ceagro ($100 million) and Marfrig ($375 million) comprise the list of 'B' rated issuers with non-benchmark-sized bonds maturing in 2016. *********** 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 * * *