/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150430.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, April 30, 2015, Vol. 16, No. 084 Headlines A R G E N T I N A PETROBRAS ARGENTINA: Moody's Confirms Ba2 Rating on US$300MM Notes B R A Z I L BANCO INDUSTRIAL: Fitch Raises LT IDR to 'BB'; Outlook Stable BANCO INDUSTRIAL: Fitch Affirms 'B' Short Term Currency IDRs BANCO PINE: Fitch Lowers IDRs to 'BB'; Outlook Stable BRAZIL: March Unemployment Rate Climbs in Blow to Rousseff HYPERMARCAS SA: First-Quarter Profit Flat From Year Ago PETROLEO BRASILEIRO: Moody's Confirms 'Ba2' Sr. Unsec. Debt Rating RB CAPITAL: Moody's Confirms Ba2 Global Scale Ratings on Certs REDE D'OR: S&P Raises CCR to 'BB'; Outlook Positive C A Y M A N I S L A N D S AZUREWAVE (CAYMAN): Creditors' Proofs of Debt Due May 19 BORAS HOLDINGS: Creditors' Proofs of Debt Due May 27 FALUN HOLDINGS: Creditors' Proofs of Debt Due May 27 MILLENNIUM TMT FRIENDI: Creditors' Proofs of Debt Due May 27 MILLENNIUM TMT FUND: Creditors' Proofs of Debt Due May 27 MILLENNIUM TMT INVESTMENTS: Creditors' Proofs of Debt Due May 27 MILLENNIUM TMT LBIT: Creditors' Proofs of Debt Due May 27 MULTILAW SERVICES: Creditors' Proofs of Debt Due May 18 NARES HOLDINGS: Creditors' Proofs of Debt Due May 27 NEWPOINT GENESIS: Commences Liquidation Proceedings OLGA HOLDINGS: Creditors' Proofs of Debt Due May 27 J A M A I C A BANK OF JAMAICA: Names New Board to Serve for Three Years UC RUSAL: Blasts London Metal Exchange M E X I C O MEXICO: Foreign Reserves Drop by $333 Million P A R A G U A Y BANCO REGIONAL: S&P Affirms 'BB-' ICR; Outlook Remains Stable - - - - - ================= A R G E N T I N A ================= PETROBRAS ARGENTINA: Moody's Confirms Ba2 Rating on US$300MM Notes ------------------------------------------------------------------ Moody's Latin America Agente de Calificacion de Riesgo confirmed the Ba2/Aaa.ar global scale rating and national scale rating on Petrobras Argentina S.A.'s (Petrobras Argentina) US$300 million in guaranteed Series S notes (CUSIP 71646JAB5). The rating action reflects Moody's Investors Service's rating action on April 27, 2015 of confirming Petrobras S.A.'s (Petrobras, the guarantor) global debt ratings at Ba2. The ratings outlook is now stable, also in accordance to Petrobras' rating outlook. This concludes the ratings review period started in late December 2014. Outlook Actions: Issuer: Petrobras Argentina S.A. -- Outlook, Changed To Stable From Rating Under Review Confirmations: Issuer: Petrobras Argentina S.A. -- Senior Unsecured Regular Bond/Debenture, Confirmed at Ba2/Aaa.ar The rating actions on Petrobras Argentina reflect the confirmation of Petrobras' ratings, on April 27, 2015, at Ba2, which reflected the release of its unqualified audited 2014 financial statements, whose delivery was questioned as a consequence of the effects from ongoing corruption investigations. The rating actions also reflected Moody's expectation that Petrobras will continue to be challenged to make meaningful reduction in its very high debt burden over the next several years. For further detail on the rating actions on Petrobras Argentina or on Petrobras. The principal methodology used in these ratings was Global Independent Exploration and Production Industry published in December 2011. Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in June 2014 entitled "Mapping Moody's National Scale Ratings to Global Scale Ratings". =========== B R A Z I L =========== BANCO INDUSTRIAL: Fitch Raises LT IDR to 'BB'; Outlook Stable ------------------------------------------------------------- Fitch Ratings has upgraded Banco Industrial do Brasil's (BIB) Long-term Issuer Default Rating (IDR) to 'BB' from 'BB-' and its Long-term National Rating to 'A+(bra)' from 'A(bra)'. The Rating Outlook remains Stable. Key Rating Drivers The upgrade of Banco Industrial do Brasil's (BIB) ratings reflects its stable risk profile, adequate performance, above-peer average, as well as the good asset quality, liquidity and capitalization, through the different Brazilian economy cycles. The ratings are also supported by BIB's experience and consistent focus on small and medium-sized companies (SMEs). On the other hand, these factors are offset by the bank's small size, when compared to peers and by the asset and liability concentrations inherent to its business model. Despite the challenges of the environment, in 2014 BIB improved its credit quality indicators, with past-due loans over 90 days at a low 0.7% of the total (2.6% in 2013) and maintained low leverage, reflecting its more conservative appetite for credit risk, given the current weaker macroeconomic scenario. BIB has one single company in its portfolio which is involved in the 'Lava Jato' operation of the Federal Police Department, representing only 1.5% of the total portfolio, which should result in a slight provisioning increase in 2015, with no relevant impact on its good credit quality indicators. Over the last several years, the bank has focused on the SME segment, after having sharply reduced its payroll deductible loan business which accounted for only 12% of its loan portfolio in 2014. The bank has focused its operations on companies with invoicing above BRL250 million. In addition, it has looked for stronger collateral coverage to reduce the risks in the more challenging scenario. In 2014, the 20 largest clients accounted for around 30% of the portfolio. BIB's results improved in 2014, amidst a scenario of weak macroeconomic performance, as the bank benefited from improvements in terms of financing costs and moderate competition in the SME segment. The bank's profitability was above its peers (ROAA of 1.7% in 2014; 1.5% in 2013; and 1.8% in 2012), showing consistency throughout recent years. Fitch expects BIB's profitability to remain adequate in upcoming years. The 20 largest deposits accounted for 48% of total deposits in 2014. The bank has diversified its funding base, as it was able to access trade finance lines with multilateral agencies. In 2014, BIB significantly expanded its term-deposit funding base (by 49%) at competitive costs and terms. During that same year, the bank has also improved its liquidity position, with net assets accounting for 44% of total deposits (23% in 2013), while Fitch's Core Capital ratio was reasonably comfortable, at 16.3%. Rating Sensitivities Positive Rating Action: Given its current business model, with asset and liability concentrations inherent to its size, new rating upgrades are limited. Upgrades would depend upon the strengthening of the bank's local franchise, increased funding diversification, product mix and expanded operations, which could reduce asset and liability concentration. Negative Rating Action: On the other hand, the ratings could be negatively affected by deterioration in BIB's asset quality, with the consequent performance decline (operating ROAA below 1.0%) and reduction of capitalization ratios (Fitch's Core Capital below 13.0%). Fitch has taken these rating actions: -- Long-term Foreign and Local Currency IDRs upgraded to 'BB' from 'BB-'; Outlook Stable; -- Short-term Foreign and Local Currency IDRs affirmed at 'B'; -- Viability Rating upgraded to 'bb' from 'bb-'; -- Support Rating affirmed at '5'; -- Support Rating Floor affirmed at NF ; -- Long-term National Rating upgraded to 'A+(bra)' from 'A(bra)'; Outlook Stable; -- Short-term National Rating affirmed at 'F1(bra)'. BANCO INDUSTRIAL: Fitch Affirms 'B' Short Term Currency IDRs ------------------------------------------------------------ Fitch Ratings has reviewed the ratings of these Brazilian midsized banks: -- Banco ABC Brasil S.A. (ABC Brasil) -- Banco Alfa de Investimento S.A. (Alfa) -- Banco Daycoval S.A. (Daycoval) -- Banco Industrial do Brasil S.A. (Industrial) -- Banco Pine S.A. (Pine) -- Banco Safra S.A. (Safra) -- Safra Leasing Arrendamento Mercantil S.A. (Safra Leasing) -- Parana Banco S.A. (Parana) The ratings for ABC Brasil, Alfa, Daycoval, Safra and Parana were all affirmed. Industrial's Foreign Currency and Local Currency IDRs were upgraded to 'BB' from 'BB-', and its Viability Rating to 'bb' from 'bb-'. The National Long Term Rating was upgraded to 'A+'(bra) from 'A'(bra). Pine's Foreign Currency and Local Currency IDRs were downgraded to 'BB' from 'BB+', and its Viability Rating to 'bb' from 'bb+'. The National Long-Term Rating was downgraded to 'A+'(bra) from 'AA-'(bra). Fitch has affirmed these ratings: ABC Brasil -- Long-term foreign and local currency IDRs affirmed at 'BBB-'; Outlook Stable; -- Short-term foreign and local currency IDRs affirmed at 'F3'; -- Viability rating affirmed at 'bbb-'; -- Long-term national rating affirmed at 'AA(bra)'; Outlook Stable; -- Short-term national rating affirmed at 'F1+(bra)'; -- Support rating affirmed at '3'. -- Senior unsecured BRL notes due 2016 foreign currency rating affirmed at 'BBB-' Alfa -- Long-term National Rating affirmed at 'AA(bra)'; Outlook Stable; -- Short-term National Rating affirmed at 'F1+(bra)'. Daycoval -- Long-term foreign and local currency IDRs affirmed at 'BBB-', Outlook Stable; -- Short-term foreign and local currency IDRs affirmed at 'F3'; -- Viability rating affirmed at 'bbb-'; -- Long-term national rating affirmed at 'AA(bra)'; Outlook Stable; -- Short-term national rating affirmed at 'F1+(bra)'; -- Support rating affirmed at '5'; -- Support rating floor affirmed at 'NF'; -- Senior unsecured USD notes due 2016 and 2019, foreign currency rating affirmed at 'BBB-'. -- Senior unsecured BRL letras financeiras due 2015, 2016 and 2017 affirmed at 'AA(bra). Industrial -- Long-Term Foreign and Local Currency IDRs upgraded to 'BB' from 'BB-'; Outlook Stable; -- Short-Term Foreign and Local Currency IDRs affirmed at 'B'; -- Viability Rating upgraded to 'bb' from 'bb-'; -- Support Rating affirmed at '5'; -- Support Rating Floor affirmed at 'No Floor'. -- Long-Term National Rating upgraded to 'A+ (bra)' from 'A (bra)'; Outlook Stable; -- Short-Term National Rating affirmed to 'F1 (bra)'. Pine -- Long-Term Foreign and Local Currency IDRs downgraded to 'BB', from 'BB+'; Outlook Stable; -- Short-Term Foreign and Local Currency IDRs affirmed at 'B'; -- Viability Rating downgraded to 'bb' from 'bb+'; -- Support Rating affirmed at '5'; -- Support Rating Floor affirmed at 'no floor'; -- Long-Term National Rating downgraded to 'A+(bra)' from 'AA-(bra)'; Outlook Stable; -- Short-Term National Rating affirmed at 'F1+(bra)'. -- Senior unsecured BRL letras financeiras due 2014, 2015 and 2016 downgraded to 'A+(bra)' from 'AA-(bra)'; -- Subordinated Debt USD Notes due 2017 downgraded to 'B+' from 'BB-'. -- Huaso Bonds Program Expiring in 2022 downgraded to 'A-(cl)' from 'A(cl)' (single A cl). Safra -- Long-term foreign and local currency IDRs affirmed at 'BBB'; Outlook Negative -- Short-term foreign and local currency IDRs affirmed at 'F2'; -- Viability rating affirmed at 'bbb'; -- Support Rating affirmed at '4' -- Support rating floor affirmed at 'B+'; -- National Long-term rating at 'AAA(bra)'; Outlook Stable; -- National short-term rating at 'F1+(bra)'; -- Market-linked BRL Securities due 2016 and 2017 affirmed at 'BBBemr'; -- Senior unsecured CHF notes due 2017 and 2019 affirmed at 'BBB'. Safra Leasing: -- National long-term rating affirmed at 'AAA(bra)'; Outlook Stable; -- National short-term rating affirmed at 'F1+(bra)'. -- Subordinated Debenture Issues due 2017, 2035, 2036 and 2037 affirmed at 'AA+(bra)'. Parana -- Long-term National Rating affirmed at 'AA-(bra)'; Outlook Stable; -- Short-term National Rating affirmed at 'F1+(bra)'. BANCO PINE: Fitch Lowers IDRs to 'BB'; Outlook Stable ----------------------------------------------------- Fitch Ratings has downgraded the Foreign and Local Currency Issuer Default Ratings (IDRs) for Banco Pine S.A. (Pine) to 'BB' from 'BB+'; the Viability Rating (VR) to 'bb' from 'bb+' ; and the National Long-Term Rating 'A+(bra)' from 'AA-(bra)'. The Rating Outlook is Stable. KEY RATING DRIVERS The downgrade of Pine's ratings reflects Fitch's opinion that the drop on the bank's profitability observed during 2014 to a level below of that of previous years is a trend that should continue in the medium term. Such structural change on the bank's profitability profile mainly comes as a result of reduced revenues due the more temperate growth and reposition of its loan book towards less risky segments, competition challenges and possible needs for increased loan loss provisions in the short and medium term. Pine's relatively large asset concentration - especially from corporate names on its loan book - results in asset quality pressures due to a decelerating economy and challenging operating environment. Fitch notes that the repositioning of its lending activities towards lower risk segments could reduce its credit costs in the medium term. However, it also demands not only an appropriate pricing, but a deeper assessment of the bank's costs (credit and operating costs) in order to rebalance the risk-reward relationship of its deals. In the agency's view, this task may be limited by the pressures of the operating environment. Since end-2014 Pine has chosen not to expand credit operations. This decision aimed at maintaining the bank's asset quality protected, avoiding higher provisioning expenses in upcoming years and thus partially offsetting the retraction in its profitability. This decision can compromise the bank's future revenues, since it can reduce its spreads to face the increasing appetite of the competition in the medium term. The current levels of liquidity in the industry and the search of lower risk credit operations by Pine's competitors increases the credit offer by banks with larger bargaining power (and a wide product range) to better quality clients - which are Pine' focus. The good quality of Pine's credit portfolio (which is the result of adequate underwriting, credit risk policies and guarantee structuring) may be tested under the current scenario of economic deceleration. Also, its relatively large exposure to some corporate clients will likely demand higher provisioning levels in the period 2015/16. This increased credit cost should reduce the bank's capital generation capacity as it pressures its profitability. Fitch expects Pine to remain with low profitability levels during 2015 and 2016, but net losses are not part of our base case scenario. In general, Fitch estimates that Brazilian banks profitability should be impacted by an increase in credit provisioning in the range of approximately 30% in 2015 - and Pine would not be an exception. Prudent asset and liability management and the excess of liquidity in Brazil and elsewhere in the last 4 years allowed Pine to obtain alternative funding options, such as bilateral credit lines from local and foreign banks, multilateral funding and the transfer of development funds from BNDES. However, although in a down trend, Pine's funding base continues concentrated, with term deposits accounting for 27% of the total funding as of December 2014 (36% as of December 2013). Despite such concentrations, the current funding base of the bank bodes well compared to the tenor of its portfolio and good liquidity levels, a situation that should prevail in an environment of lower loan growth. The average cost of Pine's liabilities has been gradually reducing. Some examples of the bank's movements on this purpose are the early payment of around 50% of the debts issued in the Chilean market (Huaso Bond), the bank's repayment of some of its more expensive funding issuances (including its subordinated debt) and the cost reduction associated with its DPGE portfolio - by attaching guarantees to it, resulting in lower insurance costs with FGC. In an attempt to hold its profitability under control, Pine has been adopting measures to contain personnel and administrative costs. Among these, the bank has reduced its staff by around 10% from November 2014 to April 2015. Such cost control measures should partially compensate the expected increase on loan loss reserves. Despite the trend of lower results showed in the last couple of years, the bank's capitalization levels were maintained in 2014. The Fitch's Core Capital/Risk-Weighed Assets ratio was 12.4% as of December 2014, against 12.3% as of December 2013 (or 13.3% from 2011 to 2013). Pine's capitalization is still adequate compared to similarly rated banks, considering the concentration of its loans, the limited growth appetite of the bank for the short term and the expected trend of low profitability in the medium term. Such capitalization jointly with prudent and on time loan loss provisioning will bode well for the bank to confront the current challenging operating environment. Pine shows low concentration on credits deriving from the production chain related to 'Lava Jato' (car wash) operation - directly or indirectly dependent upon Petroleo Brasileiro S.A. - Petrobras. RATING SENSITIVITIES Limited Upgrade Potential: Pine's ratings could be upgraded in a scenario of increasing revenues and adequate costs control, which resulted in constant improvements to its operating profitability. Negative Rating Action: Pine's ratings could be further downgraded in case of deterioration in its performance, asset quality and/or capitalization (meaning ROA below 1.0%, impaired loans (D-H) above 5.0% and/or FCC lower than 12%). Fitch takes these rating actions: Banco Pine S.A. -- Long-Term Foreign and Local Currency IDRs downgraded to 'BB' from 'BB+'; Outlook Stable; -- Short-Term Foreign and Local Currency IDRs affirmed at 'B'; -- Viability Rating downgraded to 'bb' from 'bb+'; -- Support Rating affirmed at '5'; -- Support Rating Floor affirmed at 'no floor'; -- Long-Term National Rating downgraded to 'A+(bra)' from 'AA-(bra)'; Outlook Stable; -- Short-Term National Rating affirmed at 'F1+(bra)' ; -- Senior unsecured BRL letras financeiras due 15th October 2015 and 31st July 2016 downgraded to 'A+(bra)' from 'AA-(bra)'; -- Subordinated Debt USD Notes due 2017 downgraded to 'B+' (B plus) from 'BB-'; -- Huaso Bonds Program Expiring in 2022 downgraded to 'A-(cl)' from 'A(cl)'; -- Huaso Bonds due 2017 downgraded to 'A-(cl)' from 'A(cl)'. BRAZIL: March Unemployment Rate Climbs in Blow to Rousseff ---------------------------------------------------------- David Biller and Mario Sergio Lima at Bloomberg News report that Brazil's March unemployment rate climbed to the highest level in three years as Latin America's largest economy slips closer to recession amid rising interest rates and fiscal tightening. The jobless rate rose to 6.2 percent from 5.9 percent a month earlier, according to data released by Brazil's national statistics agency (IBGE), reports Bloomberg News. That was higher than the 6.1 percent median estimate from 32 economists surveyed by Bloomberg. Bloomberg News notes that market reaction to the report was mixed. Swap rates fell, while the currency rose and stock futures pointed to a higher opening in Sao Paulo. The deterioration of Brazil's labor market is a blow to President Dilma Rousseff, who until last year was able to point to low unemployment levels as one of the successes for her administration, Bloomberg News says. Since closing out 2014 at a record low 4.3 percent, the jobless rate has risen for three straight months, Bloomberg News discloses. The economy has shed 64,907 jobs in the first two months of the year, the worst performance since 2009, Bloomberg News says. "It's clear that the labor market continues to lose steam in Brazil, and this is due to a long period of low growth and high inflation," said Luciano Rostagno, the chief strategist at Banco Mizuho do Brasil SA in Sao Paulo, Bloomberg News relays. "After a long period of the job market strengthening now we see -- I would say -- rapid deterioration," Bloomberg News quoted Mr. Rostagno as saying. Swap rates on the contract closing in January 2017, the most traded in Sao Paulo April 28, fell five basis points, or 0.05 percentage point, to 13.20 percent at 10:23 a.m. local time. The real strengthened 0.9 percent to 2.8911 per U.S. dollar, Bloomberg News notes. Pushing Congress According to the report, the government is pushing Congress to help cut costs by trimming unemployment and pension benefits as part of the fiscal adjustment to shore up accounts. Policy makers have raised the benchmark interest rate at four straight meetings to 12.75 percent and economists surveyed by Bloomberg forecast a half-point increase April 22. Inflation in the year through mid-April accelerated to an 11-year high of 8.22 percent, above the top of the central bank's 2.5 percent to 6.5 percent target range, Bloomberg News says. Alberto Ramos, chief Latin America economist at Goldman Sachs Group Inc. said the "main takeaway" from March employment data was the 3 percent decline in real wages versus the same month last year, partly spurred by inflation's acceleration, Bloomberg News discloses. While Brazil's gross domestic product unexpectedly expanded in the fourth quarter last year, analysts surveyed weekly by the central bank expect the economy to shrink 1.1 percent in 2015 -- the deepest contraction since 1990, Bloomberg News relays. Weaker economic activity and inflation will continue to depress the labor market, according to Goldman's Ramos, Bloomberg News notes. "It's the beginning of a trend that probably will last for a while," Mr. Ramos said, Bloomberg News discloses. "It's part of the process of macroeconomic adjustment. We see a steady decline in employment." HYPERMARCAS SA: First-Quarter Profit Flat From Year Ago ------------------------------------------------------- Jeb Blount at Reuters reports that first-quarter profit at Brazilian consumer goods maker Hypermarcas SA was little changed from a year earlier, as higher sales from more aggressive promotions were offset by higher costs. Net income at the country's biggest producer of hygiene products and generic drugs rose 0.5 percent to BRL90.7 million ($30.7 million), the company said in a securities filing, according to Reuters. The result was in line with an average forecast of BRL93 million in a Reuters survey of analysts. With inflation climbing more than 8 percent and the economy slowing toward an expected recession, consumer confidence fell to record lows in early 2015, forcing companies to spend more on marketing and sales campaigns to keep revenue growing, Reuters relates. Revenue for Hypermarcas rose 12.5 percent to BRL1.21 billion as it cut prices in certain segments to win market share, according to the report. A 26 percent increase in the cost of goods sold, which includes, the cost of materials and labor, and a 17 percent increase in total financial costs eliminated much of the impact of the sales increase, the report relates. Financial costs were driven higher by rising Brazilian interest rates, Reuters notes. Net financial costs were 24 percent higher in the quarter than in the first quarter of 2014, the report discloses. Earnings before interest, taxes, depreciation and amortization, a measure of profit earned from operations known as EBITDA, rose 10.8 percent to BRL286.9 million, beating the average forecast of BRL269 million. Hypermarcas SA is a maker of consumer products from diapers to generic drugs. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 23, 2014, Fitch Ratings affirmed these ratings of Hypermarcas S.A.'s: -- Long-term foreign currency Issuer Default Rating (IDR) at 'BB+'; -- Long-term local currency IDR at 'BB+'; -- Senior unsecured notes due in 2021 at 'BB+'; PETROLEO BRASILEIRO: Moody's Confirms 'Ba2' Sr. Unsec. Debt Rating ------------------------------------------------------------------ Moody's Investors Service confirmed all ratings for Petroleo Brasileiro S.A. - PETROBRAS - and ratings based on Petrobras' guarantee. This includes the confirmation of Petrobras' senior unsecured debt at Ba2. The company's Baseline Credit Assessment (BCA) is unchanged at b2. This rating action concludes the review for downgrade and reflects the publication of 2014 financial statements with an unqualified audit opinion. The review focused on liquidity pressure that could have arisen if the company had failed to satisfy covenant provisions requiring timely delivery of audited annual statements, given the accounting uncertainties related to its recent history of large improper payments. The outlook is stable for Petrobras and its guaranteed debt. The unguaranteed ratings of Petrobras Argentina S.A., including the B2 Corporate Family Rating, were affirmed. The rating outlook for unguaranteed ratings of Petrobras Argentina continues to be negative. Outlook Actions: Issuer: Petrobras Global Finance B.V. -- Outlook, Changed To Stable From Rating Under Review Issuer: Petrobras International Finance Company -- Outlook, Changed To Stable From Rating Under Review Issuer: Petroleo Brasileiro S.A. - PETROBRAS -- Outlook, Changed To Stable From Rating Under Review Confirmations: Issuer: Petrobras Global Finance B.V. -- Backed Subordinate Shelf, Confirmed at (P)Ba3 -- Backed Senior Unsecured Shelf, Confirmed at (P)Ba2 -- Backed Senior Unsecured Regular Bond/Debenture, Confirmed at Ba2 Issuer: Petrobras International Finance Company -- Backed Subordinate Shelf, Confirmed at (P)Ba3 -- Backed Senior Unsecured Shelf, Confirmed at (P)Ba2 -- Backed Senior Secured Shelf, Confirmed at (P)Ba1 -- Backed Senior Unsecured Regular Bond/Debenture, Confirmed at Ba2 Issuer: Petroleo Brasileiro S.A. - PETROBRAS -- Corporate Family Rating, Confirmed at Ba2 -- Backed Preferred Shelf, Confirmed at (P)B1 -- Backed Subordinate Shelf, Confirmed at (P)Ba3 -- Backed Senior Unsecured Shelf, Confirmed at (P)Ba2 -- Preferred Shelf, Confirmed at (P)B2 -- Subordinate Shelf, Confirmed at (P)Ba3 -- Senior Unsecured Shelf, Confirmed at (P)Ba2 -- Senior Secured Shelf, Confirmed at (P)Ba2 Affirmations: Issuer: Petrobras Argentina S.A. -- Corporate Family Rating, Affirmed B2 -- Senior Secured Medium-Term Note Program, Affirmed (P)B1 -- Senior Unsecured Medium-Term Note Program, Affirmed (P)B2 The confirmation of Petrobras' rating reflects Moody's belief that the provision of audited financial statements eliminates the near term prospect of debt acceleration resulting from violation of covenants in indentures and loan agreements. While liquidity risks have eased markedly since Moody's last rating action on February 24, the b2 BCA and Ba2 rating incorporate Moody's updated assessment that near term financial performance will be significantly weaker than it had previously expected. The company's most recent guidance indicates that deterioration of leverage measures such as debt/EBITDA will continue through 2015. Petrobras' reported a USD 7.4 billion loss for the year 2014 after impairment charges of USD 16.8 billion. More importantly, cash from operations of USD 26.6 billion fell well short of cash outflows for capital spending of USD 34.8 billion and dividends of USD 3.9 billion. While USD 3.7 billion of asset sales partially bridged the gap between cash generation and cash outflows, the result was that the company significantly increased its borrowing. For 2015, the company expects to generate USD 23 billion in operating cash and spend USD 29 billion in capex. It plans to borrow USD 13 billion to end the year with USD 20 billion in cash. Global oil prices are expected to remain relatively depressed for several years. In 2015, Petrobras' downstream business will benefit from the current spread between lower international crude prices compared to domestic refined product prices, which will only partially offset the negative impact of low oil prices in its upstream business segment. While the maintenance of current level of domestic prices for refined products is cushioning Petrobras to some degree from weakness in global oil prices, Moody's believes that the gap between domestic and global prices is unlikely to be sustainable over a long period. However, even with planned reductions in capital expenditures, Moody's expects that cash flow from operations will not cover capital spending, resulting in yet another year in which free cash flow is negative in the absence of substantial asset sales. Moody's acknowledges that the company has announced a divestment plan totaling USD 13.7 billion for 2015 and 2016, but believes there is execution risk and that any material asset sales may not happen until next year. Curtailment of capital spending to conserve cash could also lead to production falling short of previously planned targets in the future. Moody's updated expectation is that leverage, as indicated by Moody's adjusted gross debt/EBITDA, will likely climb above 6x at year-end 2015 from about 5.3x at mid-year 2014, in the absence of substantial asset sales. While the company is striving to reduce its leverage and has announced that it will not pay dividends for the balance of 2015, Moody's currently expects only a modest leverage decline in 2016. The company's ratings also reflect challenges related to the corruption investigations, which create management distractions that may hinder efforts to improve operations as well as ongoing concerns about corporate governance and the need to substantially improve internal controls. The company also may incur losses due to fines and shareholder litigation. Petrobras' ratings have a stable outlook, reflecting Moody's expectation that the company's operating and financial conditions will not materially change in the short to medium term. Moody's expects financial performance to decline in 2015 before beginning an improving trend as oil prices slowly recover and management initiatives to improve operations and sell assets begin to have a material effect on credit metrics. Future positive rating actions are likely to depend upon the company's ability to demonstrate improved operating performance that will support a stronger financial profile. Negative rating actions could result from significant deterioration in operating performance, major new negative developments from the corruption investigations, or the reappearance of significant liquidity pressures. Petrobras' rating could be sensitive to changes in the government's rating as well as to Moody's assessment of the strength of support from the government. Moody's currently assumes a high likelihood of support and moderate dependence with the government's rating. This support assumption reflects, among other things, the government's stated willingness to stand behind Petrobras should that be needed. The principal methodology used in these ratings was Global Integrated Oil & Gas Industry published in April 2014. Other methodologies used include the Government-Related Issuers methodology published in October 2014. Petrobras, based in Rio de Janeiro, is an integrated energy company, with total assets of about USD 299 billion as of December 31, 2014. Petrobras dominates Brazil's oil and natural gas production, as well as downstream refining and marketing. The company also holds a significant stake in petrochemicals and a burgeoning position in sugar-based ethanol production and distribution. The Brazilian government directly and indirectly owns about 46% of Petrobras' outstanding capital stock and 60.5% of its voting shares. RB CAPITAL: Moody's Confirms Ba2 Global Scale Ratings on Certs -------------------------------------------------------------- Moody's America Latina, Ltda. has upgraded the national scale ratings to Aa3.br from A1.br of the 3rd series of certificates of RB Capital Securitizadora S.A., the 4th series of certificates of RB Capital Securitizadora S.A, the 42nd series of certificates of RB Capital Securitizadora S.A. and the 31st series of certificates of RB Capital Companhia de Securitizacao and confirmed the global scale ratings at Ba2. This action concludes the review Moody's initiated on Feb. 25, 2015, when it downgraded and placed the ratings under review for further downgrade. These series of real estate certificates (CRIs) issued by RB Capital Securitizadora and RB Capital Companhia de Securitizacao are backed by built-to-suit lease agreements with Petr¢leo Brasileiro S.A. -- Petrobras (Ba2 stable). The rating action follows Moody's confirmation of Petrobras' ratings on April 27, 2015. Petrobras' senior unsecured ratings were confirmed at Ba2 (global scale). The ratings outlook is stable. Issuer: RB Capital Securitizadora S.A. -- 3rd series CRIs backed by a built-to-suit lease agreement: Confirmed at Ba2 (global scale rating); Upgraded to Aa3.br from A1.br (national scale rating) -- 4th series CRIs backed by a built-to-suit lease agreement: Confirmed at Ba2 (global scale rating); Upgraded to Aa3.br from A1.br (national scale rating) -- 42nd series CRIs backed by a built-to-suit lease agreement: Confirmed at Ba2 (global scale rating); Upgraded to Aa3.br from A1.br (national scale rating) Issuer: RB Capital Companhia de Securitizacao -- 31st series CRIs backed by a built-to-suit lease agreement: Confirmed at Ba2 (global scale rating); Upgraded to Aa3.br from A1.br (national scale rating) Moody's views the certificates as being pass through securities of Petrobras' senior unsecured credit risk under the built-to-suit lease agreements. The Ba2/Aa3.br ratings of the 3rd, 4th and 42nd series of certificates issued by RB Capital Securitizadora and the 31st series of certificates issued by RB Capital Companhia de Securitizacao are primarily based on Petrobras' ability to make payments under the underlying lease agreements. Also, Petrobras covers taxes and trust expenses and a termination of the lease agreements would result in a call under the certificates. The Ba2 global scale, local currency rating has been associated with a default frequency, over 3--year investment horizons, of 3.65%. Petrobras, based in Rio de Janeiro, is an integrated energy company and the largest corporation in Brazil, with total assets of USD 341 billion as of September 2014. Petrobras dominates Brazil's oil and natural gas production, as well as downstream refining and marketing. It also holds a significant stake in petrochemicals and a burgeoning position in sugar-based ethanol production and distribution. The Brazilian government directly and indirectly owns a total of about 46% of the company's outstanding capital stock and 60.4% of its voting shares. Factors that would lead to an upgrade or downgrade of the rating: Any future changes to the senior unsecured debt rating of Petrobras will lead to a change in the ratings assigned to the certificates. REDE D'OR: S&P Raises CCR to 'BB'; Outlook Positive --------------------------------------------------- Standard & Poor's Ratings Services raised its global scale corporate credit ratings on Rede D'Or Sao Luiz S.A. (Rede D'Or) to 'BB' from 'BB-' and its national scale corporate credit and debt ratings to 'brAA-' from 'brA'. The outlook on both scales is positive. The upgrade reflects the recently announced capital injection of R$1.8 billion from Carlyle Group, which will significantly improve the company's credit metrics and cash position to support its expansion plan. Coupled with that, Rede D'Or's R$600 million debentures held by BTG will soon be converted into equity. S&P also expects Rede D'Or's margins to continue improving due to the full integration of past acquisitions. "We believe Rede D'Or should continue to benefit from Brazil's aging population and low unemployment rates in the intermediate to long term despite the currently weak economy. We believe the company is poised for strong growth as the mismatch between demand for new beds and offer of new private beds has increased during the past few years, underscoring a significant deficit in the healthcare system and a meaningful opportunity for private players. Rede D'Or is the largest private hospital operator in Brazil with 27 hospitals and about 4.5 million beds, while the second-largest player has 1.5 million beds. As the market leader, we expect the company to continue to benefit from stronger bargain power with suppliers and health insurance providers as it has been acting as the segment consolidator since 2010. On the other hand, we believe the revenue concentration in four Brazilian states and one segment, and on few health insurance providers and its lower scale than those of its international peers limit the company's business risk profile," S&P said. Rede D'Or has been expanding significantly over the past several years through acquisitions, greenfields and brownfields, while maintaining occupancy rates above 80% and improving profitability. The company has been successfully turning around acquired hospitals, improving services quality, occupancy rates, sales mix and cost structure. All of these factors have increased the company's profitability and returns. Moreover, the company's investments in billing systems and internal accounts audition are resulting in higher receivable collections and lower provisions for disallowances and default rates. The upcoming R$1.8 billion capital injection and the conversion of R$600 million debentures into equity will also boost the credit metrics. On the other hand, S&P foresees significant cash outflows for capital expenditure to support Rede D'Or's expansion plan, somewhat limiting free operating cash flow generation. Consequently, S&P assess the company's financial risk profile as "significant." ========================== C A Y M A N I S L A N D S ========================== AZUREWAVE (CAYMAN): Creditors' Proofs of Debt Due May 19 ------------------------------------------------------- The creditors of Azurewave (Cayman) Holding Inc. are required to file their proofs of debt by May 19, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 10, 2015. The company's liquidator is: Wu Hung-Yung 5th Floor-1, No.369 Sec. 2, Chenggong Rd. Neihu Dist. Taipei City 114 Taiwan (R.O.C.) BORAS HOLDINGS: Creditors' Proofs of Debt Due May 27 ---------------------------------------------------- The creditors of Boras Holdings Limited are required to file their proofs of debt by May 27, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 1, 2015. The company's liquidator is: Matthew Wright c/o Omar Grant Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Windward 1 Regatta Office Park Grand Cayman KY1-1103 Cayman Islands FALUN HOLDINGS: Creditors' Proofs of Debt Due May 27 ---------------------------------------------------- The creditors of Falun Holdings Limited are required to file their proofs of debt by May 27, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 1, 2015. The company's liquidator is: Matthew Wright c/o Omar Grant Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Windward 1 Regatta Office Park Grand Cayman KY1-1103 Cayman Islands MILLENNIUM TMT FRIENDI: Creditors' Proofs of Debt Due May 27 ------------------------------------------------------------ The creditors of Millennium TMT Friendi Mobile Investment Ltd. are required to file their proofs of debt by May 27, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 6, 2015. The company's liquidator is: Krys Global VL Services Limited 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 (345) 947 4700 MILLENNIUM TMT FUND: Creditors' Proofs of Debt Due May 27 --------------------------------------------------------- The creditors of Millennium TMT Fund GP are required to file their proofs of debt by May 27, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 29, 2015. The company's liquidator is: Krys Global VL Services Limited 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 (345) 947 4700 MILLENNIUM TMT INVESTMENTS: Creditors' Proofs of Debt Due May 27 ---------------------------------------------------------------- The creditors of Millennium TMT Fund Investments Holding Company Ltd. are required to file their proofs of debt by May 27, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 6, 2015. The company's liquidator is: Krys Global VL Services Limited 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 (345) 947 4700 MILLENNIUM TMT LBIT: Creditors' Proofs of Debt Due May 27 --------------------------------------------------------- The creditors of Millennium TMT LBIT Holdings Ltd. are required to file their proofs of debt by May 27, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 6, 2015. The company's liquidator is: Krys Global VL Services Limited 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 (345) 947 4700 MULTILAW SERVICES: Creditors' Proofs of Debt Due May 18 ------------------------------------------------------- The creditors of Multilaw Services Limited are required to file their proofs of debt by May 18, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 13, 2015. The company's liquidator is: Alistair J. Walters Campbells Willow House, Floor 4, Cricket Square P.O. Box 884 Grand Cayman KY1-1103 Cayman Islands Telephone: +1 (345) 949 2648 Facsimile: +1 (345) 949 8613 NARES HOLDINGS: Creditors' Proofs of Debt Due May 27 ---------------------------------------------------- The creditors of Nares Holdings Limited are required to file their proofs of debt by May 27, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 1, 2015. The company's liquidator is: Matthew Wright c/o Omar Grant Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Windward 1 Regatta Office Park Grand Cayman KY1-1103 Cayman Islands NEWPOINT GENESIS: Commences Liquidation Proceedings --------------------------------------------------- On Feb. 27, 2015, the sole shareholder of Newpoint Genesis 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: Hon Sze Chung Somptueux Central, 9th Floor 52-54 Wellington Street Central, Hong Kong OLGA HOLDINGS: Creditors' Proofs of Debt Due May 27 --------------------------------------------------- The creditors of Olga Holdings Limited are required to file their proofs of debt by May 27, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 1, 2015. The company's liquidator is: Matthew Wright c/o Omar Grant Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Windward 1 Regatta Office Park Grand Cayman KY1-1103 Cayman Islands ============= J A M A I C A ============= BANK OF JAMAICA: Names New Board to Serve for Three Years --------------------------------------------------------- RJR News reports that Jamaica Cabinet has approved the nine-member Board of the Bank of Jamaica, to serve for the next three years. The appointment was effective March 16. The members are: -- BoJ Governor Brian Wynter who is the Chairman, -- John Robinson, -- Financial Secretary Devon Rowe, -- Christopher Bicknell, -- Dr. Vin Lawrence, -- Dennis Morrison, -- Christine Clarke, -- Janice Holness, and -- Gary Hendrickson. * * * 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'. UC RUSAL: Blasts London Metal Exchange -------------------------------------- RJR News reports that UC Rusal has re-ignited its war of words with the London Metal Exchange, saying it has allowed financial speculators to distort prices. Vladislav Soloviev, Chief Executive Officer of the heavily indebted Russian group, said the price of aluminum traded on the LME has been depressed by as much as 30 per cent by the actions of money-market players, according to RJR News. The report relates that Mr. Soloviev said the LME price does not reflect the real supply and demand balance. The report adds that Mr. Soloviev called for the exchange to increase transparency and provide further detail on market activity. UC Rusal produces seven per cent of the world's aluminum, notes the report. It has also been involved in a bitter legal wrangle with the LME over plans to reform the exchange's warehousing system and introduce rules to tackle long queues that built up in the aftermath of the global financial crisis, the report relays. UC Rusal is the dominant owner of bauxite and alumina capacity in Jamaica, but much of that capacity has been idle for the last six years, with only the Windalco Ewarton plant in operation during this period, the report relays. Late last year, the company announced it would resume operations at the Alpart plant at Nain in St. Elizabeth, starting with the mining and shipping of bauxite, recalls the report. * * * As reported in the Troubled Company Reporter-Latin America on March 31, 2014, RJR News said that UC Rusal reported a massive increase in net losses for 2013. This was due mainly to a large impairment cost and one-off restructuring charges combined with lower production and a fall in aluminum prices. The report said the company reported a net loss of US$3.2 billion. It suffered a US$528 million loss in 2012. =========== M E X I C O =========== MEXICO: Foreign Reserves Drop by $333 Million --------------------------------------------- EFE News reports that Mexico's foreign reserves fell by $333 million to $195.57 billion last week, the Bank of Mexico said. Gold and foreign currency reserves fell in the week ending April 24 mainly due to the daily auctions of $52 million with no minimum price aimed at slowing the depreciation of the Mexican peso against the U.S. currency, the central bank said, according to EFE News. The report notes that reserves have risen by $2.33 billion since Jan. 1, the Bank of Mexico said in a statement. The M1 money supply, which includes currency, coins and demand deposits, fell by 15.68 billion pesos (about $1.02 billion) to 1.02 trillion pesos (some $66.68 billion) last week, the central bank said, the report relates. The money supply has contracted by MXN40.55 billion ($2.64 billion) since Jan. 1, the report adds. =============== P A R A G U A Y =============== BANCO REGIONAL: S&P Affirms 'BB-' ICR; Outlook Remains Stable ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' issuer credit and senior unsecured debt ratings on Banco Regional S.A.E.C.A. The outlook remains stable. The issuer credit rating on Banco Regional reflects its "strong" business position, as one of the largest financial entities in Paraguay, "weak" capital and earnings based on S&P's forecasted risk-adjusted capital (RAC) ratio, "adequate" risk position due to its healthy quality metrics, "average" funding, and "adequate" liquidity. The 'BB-' issuer credit rating on the bank reflects its 'bb-' stand-alone credit profile (SACP) because it doesn't incorporate any external support (neither from the government nor group). Rabobank Financial Institutions Development B.V. owns 39% of the bank, but local shareholders control it. *********** 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 * * *