/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150603.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, June 3, 2015, Vol. 16, No. 108 Headlines A R G E N T I N A RAGHSA S.A: S&P Affirms Then Withdraws 'CCC-' Currency Rating B E R M U D A COMPASS RE: Fitch Rates $300MM Series 2015-1 Notes 'B+sf' MAIDEN HOLDINGS: A.M. Best Affirms 'bb' Preferred Stock Rating B R A Z I L CEAGRO AGRICOLA: Fitch Cuts Issuer Default Ratings to 'RD' CENTRAIS ELETRICAS: 1Q Fin'l. Results No Impact on Fitch Ratings C A Y M A N I S L A N D S BABSON CLO: Creditors' Proofs of Debt Due June 26 CARA CARA: Placed Under Voluntary Wind-Up DEKANIA CDO I: Creditors' Proofs of Debt Due June 26 DELPHINUS CDO 2007-1: Creditors' Proofs of Debt Due June 26 GS PEP II: Creditors' Proofs of Debt Due June 26 GS PEP III: Creditors' Proofs of Debt Due June 26 GS PEP OFFSHORE: Creditors' Proofs of Debt Due June 26 HAV3 (10) LIMITED: Creditors' Proofs of Debt Due June 26 MEGURO ENTERPRISES: Creditors' Proofs of Debt Due June 26 VINTAGE '06 SERIES: Creditors' Proofs of Debt Due June 25 C O L O M B I A COLOMBIA: Enjoyed Strong Growth Over Past Several Years, IMF Says D O M I N I C A N R E P U B L I C CENTRAL BANK: Trims Benchmark Rate From 5.25% to 5.0% SIERRA BAUXITA: Dominican Republic Halts Bauxite Mine G U A T E M A L A CENTRAL AMERICA BOTTLING: S&P Affirms BB CCR; Outlook Still Stable J A M A I C A JAMAICA: Trade Deficit Continues to Improve NORANDA BAUXITE: In Bauxite Levy Stand-off With Jamaica M E X I C O NEMAK S.A: S&P Affirms 'BB+' CCR; Outlook Remains Stable P E R U SAN MIGUEL: Moody's Alters Outlook to Negative, Affirms Ba2 CFR T R I N I D A D & T O B A G O COLONIAL LIFE: Halt Payments to Former Directors Says Permell - - - - - ================= A R G E N T I N A ================= RAGHSA S.A: S&P Affirms Then Withdraws 'CCC-' Currency Rating ------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'CCC-' foreign and local currency ratings on RAGHSA S.A. S&P subsequently withdrew all the ratings at RAGHSA's request. At the time of the withdrawal, the 'CCC-' foreign and local currency rating on RAGHSA and the negative outlook incorporated S&P's views of the impact that a stress scenario associated with the potential implementation of transfer and convertibility controls in Argentina could lead to rapid deterioration in RAGHSA's financial position. ============= B E R M U D A ============= COMPASS RE: Fitch Rates $300MM Series 2015-1 Notes 'B+sf' --------------------------------------------------------- Fitch Ratings has assigned a 'B+sf' rating to the following Principal At-Risk Variable Rate Notes issued by Compass Re II Ltd., an exempted special purpose insurer in Bermuda: -- $300,000,000 Series 2015-1 Class 1 Principal At-Risk Variable Rate Notes expected maturity Dec. 8, 2015. The Rating Outlook is Stable. These are zero-coupon notes and will be offered at an Offering Price of 95% to the Original Principal Amount. The notes provide reinsurance protection to various insurance company subsidiaries and affiliates of American International Group, Inc. (AIG; rated 'A-'; Outlook Positive by Fitch). The notes are exposed to Windstorms intersecting with Boundaries along the U.S. coastline ranging from approximately Brownsville, TX to Nantucket, MA, as reported by the National Hurricane Center (or successor organization). The trigger is a per occurrence event based on a parametric index. With a parametric index, noteholders are exposed to basis risk that the Event Payment Amount may not be related to the actual claim experience of AIG. The Windstorm Parameters of latitude and longitude at landfall and radius determine the Parameters X and Y used in calculating the Event Index Value. The Event Index Value is a mathematical formula that multiplies the Parameter X by the Maximum Sustained Wind Speed to the Parameter Y exponent. If the wind speed and radius are not available at landfall, then the largest of the reading just before and after making landfall will be used. If the Windstorm intersects multiple Boundaries, the respective Event Index Values will be summed to determine the Event Percentage (or the amount to be paid to the Ceding Insurer). There is a complicated linear interpolation formula, which is easily traceable in a spreadsheet format. Noteholders are exposed to principal loss if the Event Index Value exceeds 100.0 and face total principal loss if the Event Index Value reaches 150.0. Assuming maximum sustained wind speeds of 100 mph and a 100 mile radius, the Notes would be triggered if a wind storm crosses certain parts of New Jersey coastline, but no other areas along the U.S. coastline. Increasing the wind speed to 130 mph while maintaining the 100 mile radius, the Notes could be vulnerable if landfall occurred to certain parts of the Texas, Florida, Virginia and New York coastline. A category 4 hurricane is defined with wind speeds in excess of 130 mph. Fitch reviewed data for certain notable events as identified by the National Hurricane Center data (HURDAT2). This dataset lists hurricane events from 1851 to 2014, though information regarding radius size is nearly non-existent prior to 2004. For historical context, Super storm Sandy had an Event Index Value of 25.275, Hurricane Rita was 21.642 and Hurricane Frances (which had two landfalls) was 3.034. Hurricane Camille (1969) had a calculated Event Index Value of 61.135 based on an assumption that the radius was 90 miles. There have been 21 recorded Category 4 and 5 land falling hurricanes since 1851. The risk period is the six month period from June 4, 2015 to Nov. 30, 2015. The notes may be extended to June 8, 2016 if certain qualifying events occur, or at the discretion of AIG. However, the notes are not exposed to any further catastrophe events during this extension. The notes may be redeemed at any time due to regulatory or tax law changes or partially by AIG during the extension period or under certain Early Redemption Events. The repayment of the notes to the noteholders occurs subsequent to any qualified payments to AIG for covered events. Noteholders have no recourse to AIG. Key Rating Drivers The rating is based on the evaluation of the natural catastrophe risk, the counterparty risk of AIG and the credit risk of the collateral assets. The natural catastrophe risk represents the weakest link and currently drives the rating of the Series 2015-1 Class 1 Notes. The rating analysis in support of the evaluation of the natural catastrophe risk is highly model-driven. As with any model of complex physical systems, particularly those with low frequencies of occurrence and potentially high severity outcomes, the actual losses from catastrophic events may differ from the results of simulation analyses. Fitch is neutral to any of the major catastrophe modeling firms that is selected by the issuer to provide the modeling analysis, and thus Fitch did not include any explicit margins or qualitative haircuts to the probability of loss metric provided by the modeling firm. AIR Worldwide Corporation (AIR), one of the leading natural catastrophe modelers for the industry, simulated 10,000 wind storm events incorporating the Event Index Value (AIR also acts as the calculation agent if an actual wind storm occurs). Loss estimates were calculated using version 16.0 of the AIR U.S. Hurricane Model as implemented in Touchstone 2.0.2. The model produced an attachment probability of 2.41% which corresponds to an implied rating of 'B+' according to our calibration table as found in Fitch's Insurance Linked Securities Methodology. A stress test using the Warm Sea Surface Temperature Conditioned Catalog had an attachment probability of 2.67% which would not alter the implied rating. The expected loss is 1.77% and 1.94%, respectively for the two catalogs. AIR is expected to release an updated version of Touchstone (Touchstone 3.0) in the summer of 2015. There was no indication if this model change would have a positive or adverse effect on the attachment probability. Results from other possible modelers or from AIG were not provided. The ceding insurer subsidiaries of AIG (IDR: 'A-'; Rating Outlook Positive) are responsible for making a Premium Payment within ten business days following the Issuance Date such that the sum of that payment plus the proceeds received on the Notes offered equals the Original Principal Amount. These subsidiaries are also responsible for Additional Premiums that are used to pay certain expenses of the Issuer. AIG has been designated as a systemically important financial institution and identified as a global systemically important insurer. Thus, note holders are exposed to the counterparty risk of the AIG ceding insurers for this payment or potential regulatory restrictions imposed on AIG or its ceding insurers. Proceeds from this issuance will be held in a reinsurance trust account and used to purchase high-credit-quality money market funds meeting defined eligibility criteria, otherwise funds will be held in cash. Investment yields generated from these permitted investments are passed directly to noteholders and may increase the Repayment Amount above the Notes Offered to note holders. Noteholders are exposed to possible market value risk if the net asset value of a money market fund falls below $1.00. Finally, certain actions may be required if the reinsurance trust account is invested in money market funds and FATCA is deemed to apply in late 2016. Rating Sensitivities This rating is sensitive to the occurrence of a qualifying event(s), the counterparty rating of AIG and the rating on the assets held in the reinsurance trust account. If qualifying covered events occurs that cause the Event Index Value to exceed the Attachment Level, Fitch will downgrade the notes reflecting an effective default and issue a Recovery Rating. To a lesser extent, the notes may be downgraded if the money market funds should "break the buck" or the AIG ceding insurers fail to make timely premium payments. Due Diligence Usage No third party due diligence was provided or reviewed in relation to this rating action. MAIDEN HOLDINGS: A.M. Best Affirms 'bb' Preferred Stock Rating -------------------------------------------------------------- A.M. Best Co. has affirmed the financial strength rating (FSR) of A- (Excellent) and the issuer credit ratings (ICR) of "a-" of the property/casualty subsidiaries of Maiden Holdings, Ltd. (Maiden Holdings) (Hamilton, Bermuda) [NASDAQ: MHLD], also known as Maiden Group (Maiden). Concurrently, A.M. Best has affirmed the ICR of "bbb-" of Maiden Holdings and the debt rating of "bb" on its preferred stock. A.M. Best has also affirmed the ICR and senior debt ratings of "bbb-" of Maiden Holdings North America, Ltd. (Maiden NA) (Delaware), a direct, wholly owned subsidiary of Maiden Holdings. Maiden NA's senior notes are fully and unconditionally guaranteed by Maiden Holdings. The outlook for all ratings is positive. Additionally, A.M. Best has affirmed the FSR of A- (Excellent) and the ICR of "a-" of Maiden Specialty Insurance Company (MSIC) (Raleigh, NC). The outlook for this rating is stable. The ratings reflects Maiden's consistently profitable underwriting and operating performance within its niche market segments, serving small- to medium-size insurance companies underwriting traditional lines of business. This helps distinguish Maiden from other reinsurers that have a greater proportion of their book of business in higher volatility segments such as catastrophe-exposed property reinsurance. Maiden's non-catastrophe property/casualty book is a well-diversified, low-volatility portfolio that generates more predictable and profitable performance, and has generated very consistent underwriting and operating returns. In addition, Maiden's ratings also reflect its solid risk-adjusted capitalization, due in part to capital contributions from Maiden Holdings and the operational benefits that Maiden derives as a quota share partner with AmTrust Financial Services, Inc.'s (AFSI) Bermuda reinsurance subsidiary, AmTrust International Insurance, Ltd. (AII). Partially offsetting these positive rating factors is the continuing execution risk faced by Maiden in achieving its business plans due in part to the continuing competitive environment in its core reinsurance markets, as well as its client concentration, as AFSI accounts for approximately 65% of the group's 2014 total gross premiums. Maiden Holdings' adjusted debt-to-total capital, excluding accumulated other comprehensive income (AOCI) of 25.6%, and adjusted debt-to-total tangible capital (excluding AOCI) of 27.1% at March 31, 2015 were within A.M. Best's guidelines for the company's ratings. The ratings of MSIC reflect its run-off status following the 100% quota share reinsurance arrangement of Maiden's excess and surplus unit, including the transfer of MSIC staff and underwriting platform to Brit Insurance. Key rating factors that may lead to positive rating actions include the organization producing operating results that exceed its peers for an extended period, along with the strengthening of its risk-adjusted capitalization. Factors that may lead to negative rating actions include a trend of increasingly deteriorating underwriting and operating performance to a level below the group's peers, or an erosion of surplus that causes a significant decline in risk-adjusted capitalization. The FSR of A- (Excellent) and the ICRs of "a-" have been affirmed with a positive outlook for the following property/casualty subsidiaries of Maiden Holdings, Ltd.: Maiden Reinsurance Ltd. Maiden Reinsurance North America, Inc. The following debt ratings have been affirmed with a positive outlook: Maiden Holdings, Ltd. -- "bb" on $150 million 8.25% preferred stock -- "bb" on $165 million 7.25% mandatory convertible preferred stock, due 2016 Maiden Holdings North America, Ltd. (guaranteed by Maiden Holdings, Ltd.) -- "bbb-" on $100 million 8.0% senior unsecured notes, due 2042 -- "bbb-" on $107 million 8.25% senior unsecured notes, due 2041 -- "bbb-" on $152 million 7.75% senior unsecured notes, due 2043 The following indicative ratings under the shelf registration have been affirmed with a positive outlook: Maiden Holdings North America, Ltd. (guaranteed by Maiden Holdings, Ltd.) -- "bbb-" on senior unsecured debt -- "bb+" on senior subordinated debt -- "bb" on junior subordinated debt -- "bb" on preferred stock =========== B R A Z I L =========== CEAGRO AGRICOLA: Fitch Cuts Issuer Default Ratings to 'RD' ---------------------------------------------------------- Fitch Ratings has downgraded Ceagro Agricola Ltda's (Ceagro) foreign and local currency Issuer Default Ratings (IDRs) to 'RD' from 'C' and the national scale rating to 'RD (bra)' from 'C (bra)'. Fitch has also affirmed Ceagro's senior notes at 'C/RR4'. Key Rating Drivers The downgrades follow the expiration of the 15-day grace period after the non-payment of the company's interest payments for its May 2016 senior notes. Payment of the bond was due on May 16, 2015 with the 15 day grace period expiring on May 31, 2015. The company is currently negotiating with banks for a 60 days standstill agreement, and KPMG has been hired to provide lenders with an assessment of its liquidity and cash flow forecasting, and provide its views on a potential recovery plan. Rating Sensitivities The company's ratings could be revised to 'D' from 'RD' pursuant to Fitch's rating definition. An upgrade is unlikely at this time. Full List Of Rating Actions Fitch has taken the following rating actions on Ceagro Agricola Ltda: -- Foreign and local currency IDRs downgraded to 'RD' from 'C'; -- National scale rating downgraded to 'RD (bra)' from 'C (bra)'; -- USD100 million senior notes due 2016 affirmed at 'C/RR4'. CENTRAIS ELETRICAS: 1Q Fin'l. Results No Impact on Fitch Ratings ---------------------------------------------------------------- Centrais Eletricas Brasileiras S.A.'s (Eletrobras; 'BB'/ Outlook Stable) first quarter qualified financial statements release will not result in downgrade, according to Fitch Ratings. KPMG's decision to qualify the statements reflects the uncertainty regarding the results from an investigation on alleged bribes involving the former CEO of Eletronuclear -- an Eletrobras' subsidiary. Fitch believes the potential magnitude of the results, if any, from the corruption investigation will not impact the company's cash or cash flow generation in the short term. Eletrobras is currently in the process of engaging a specialized independent firm to conduct an external investigation into the bribes allegations. Eletrobras has also failed to file its Form 20-F as required by United States Securities and Exchange Commission (SEC). The prescribed filing date was April 30, 2015, as well as the extended date of May 15, 2015. The delay was not only due to the investigation of alleged bribes, but also due to the fact that the statutory auditor of its SPC Energia Sustentavel do Brasil Participacoes S.A. (Jirau) did not find itself independent as determined by the SEC. Another audit firm to audit the financial statements of Jirau for purposes of applying equity method accounting to Eletrobras' consolidated financial statements had to be appointed. The delay in filling the 2014 20-F does not impact Eletrobras covenants. The company took the necessary measures to release quarter audited financial statements in BRGAAP, and complied with SEC's policy by publicly and temporarily disclosing the filling delinquency and its cause. Two years ago Fitch downgraded Eletrobras' IDRs to high yield levels ('BB'). Fitch's decision has reflected the highly negative impact on Eletrobras' credit quality due to its decision to accept the early renewal of all of its generation and transmission electric concessions scheduled to expire between 2015 and 2017. Eletrobras continues to face a lot of challenge in achieving a sustainable capital structure absent government support, and also to significantly downsize its balance sheet through debt repayment, improvements on operational cash flow generation, and divestments on its distribution segment. Eletrobras' ratings continue to reflect some linkage with the Federal Republic of Brazil's sovereign rating ('BBB', Outlook Negative). The company is important to the country due to its relevant market share in electricity generation, transmission and distribution, with strong presence in the auctions promoted by the government to reinforce the electric sector in the country. On a standalone basis, Eletrobras's IDRs would be lower due to its still weak consolidated operational cash generation, high capital expenditures program and deteriorated credit metrics. ========================== C A Y M A N I S L A N D S ========================== BABSON CLO: Creditors' Proofs of Debt Due June 26 ------------------------------------------------- The creditors of Babson CLO Ltd. 2004-II are required to file their proofs of debt by June 26, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 6, 2015. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 CARA CARA: Placed Under Voluntary Wind-Up ----------------------------------------- On May 1, 2015, the sole shareholder of Cara Cara Limited resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by May 25, 2015, will be included in the company's dividend distribution. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Private Bank & Trust (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands Telephone: 345 949-7128 DEKANIA CDO I: Creditors' Proofs of Debt Due June 26 ---------------------------------------------------- The creditors of Dekania CDO I, Ltd. are required to file their proofs of debt by June 26, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 30, 2015. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 DELPHINUS CDO 2007-1: Creditors' Proofs of Debt Due June 26 ----------------------------------------------------------- The creditors of Delphinus CDO 2007-1, Ltd. are required to file their proofs of debt by June 26, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 6, 2015. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 GS PEP II: Creditors' Proofs of Debt Due June 26 ------------------------------------------------ The creditors of GS PEP II Offshore Advisors, Inc. are required to file their proofs of debt by June 26, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 4, 2015. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 GS PEP III: Creditors' Proofs of Debt Due June 26 ------------------------------------------------- The creditors of GS PEP III Offshore Advisors, Inc. are required to file their proofs of debt by June 26, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 4, 2015. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 GS PEP OFFSHORE: Creditors' Proofs of Debt Due June 26 ------------------------------------------------------ The creditors of GS PEP Offshore Advisors (NBK), Inc. are required to file their proofs of debt by June 26, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 4, 2015. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 HAV3 (10) LIMITED: Creditors' Proofs of Debt Due June 26 -------------------------------------------------------- The creditors of HAV3 (10) Limited are required to file their proofs of debt by June 26, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 4, 2015. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 MEGURO ENTERPRISES: Creditors' Proofs of Debt Due June 26 --------------------------------------------------------- The creditors of Meguro Enterprises Ltd. are required to file their proofs of debt by June 26, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 7, 2015. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 VINTAGE '06 SERIES: Creditors' Proofs of Debt Due June 25 --------------------------------------------------------- The creditors of Vintage '06 Series - Japan Value Added II Ltd. are required to file their proofs of debt by June 25, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 6, 2015. The company's liquidator is: Jane Fleming c/o Jean Ebanks Telephone: (345) 945-2187 Facsimile: (345) 945-2197 PO Box 30464 Grand Cayman KY1-1202 Cayman Islands =============== C O L O M B I A =============== COLOMBIA: Enjoyed Strong Growth Over Past Several Years, IMF Says ------------------------------------------------------------------ On May 18, 2015, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Colombia. Colombia has enjoyed strong growth over the past several years, among the highest in Latin America. Credible fiscal and inflation targeting frameworks have supported sound macroeconomic policy management, which underpinned robust economic performance during the last decade. Social indicators have improved steadily over this period. Public debt remained low, Colombia's foreign exchange reserve position strengthened, and the Flexible Credit Line arrangement provided a buffer against elevated external tail risks. The authorities continued to improve the fiscal policy framework and strengthen the social safety net. Real GDP grew by 4.6 percent in 2014. Unemployment declined to an average of about 9 percent during the year. In the second half of 2014, global oil prices fell sharply by about 40 percent and the peso depreciated, especially in the fourth quarter. As inflation began rising to the mid-point of the target band, and given the slightly positive output gap, the central bank raised the policy rate by 125 basis points to 4.5 percent between May and August. The central government fiscal balance remained broadly unchanged from 2013, meeting the structural balance target, although the headline fiscal deficit increased slightly. The consolidated public sector deficit rose to 1.6 percent of GDP, pushing public debt to about 39 percent of GDP. The current account deficit widened to 5.2 percent in 2014, but capital inflows were buoyant. Strong inflows of foreign direct investment and portfolio flows more than offset the current account deficit, and gross international reserves rose to 47 billion at year end. This level appears adequate for precautionary purposes but may be insufficient for tail risks. The current account deficit is projected to widen in 2015 due to the oil price decline, but would gradually narrow over the medium term with the slight recovery in oil prices and growth in Colombia's trading partners, especially the U.S. Moreover, the sharp peso depreciation should help contain imports and spur non- traditional exports. The banking system and corporate sector have remained in good financial health. Financial soundness indicators have been strong and financial system exposure to the oil sector is very low. Growth in credit to the private sector was buoyant, at 14.7 percent in 2014 (nominal year-over-year) and house price growth has slowed. Corporate profitability was strong, and liquidity remained adequate. Corporate and household debt has increased in 2014, but remains modest by international standards and leverage is within historical norms. Growth is expected to slow to 3.4 percent in 2015 given a subdued outlook for investment, especially oil-related, and private consumption. Inflation rose to 4.6 percent in March, due to a weather-related agricultural output supply shock and some pass- through from exchange rate depreciation, but is expected to diminish to 3.6 percent year-over-year by end-December with inflation expectations remaining anchored within the target band of 2-Ltd4 percent. In response to lower corporate profits and a partial postponement of dividends from the state oil company, the central government announced an expenditure reduction of 0.7 percent of GDP in 2015, which will also act as a drag on growth. However, the impact of oil shock on the budget and economic growth will be mitigated by the sharp depreciation of the peso (20 percent vis-a-vis the U.S. dollar since mid-2014), and the operation of the fiscal rule, which allows a smoother adjustment to the permanent decline in wealth. Growth is expected to gradually rise toward its potential (around 4.25 percent) over the medium term, supported by the government's Public-Private Partnership-based infrastructure program and a gradual recovery in oil prices and external demand. However, risks threaten on the downside, including higher interest rates and financial volatility, a protracted period of slower growth in advanced and emerging economies, economic or political stress in neighboring countries, and a delayed implementation of the infrastructure program. Executive Board Assessment Executive Directors welcomed Colombia's continued robust economic performance and financial stability, underpinned by prudent management and strong policy frameworks including a fiscal rule, an inflation targeting regime, and a flexible exchange rate. Substantial progress has also been made in reducing unemployment and poverty in recent years. Directors noted, however, that Colombia is facing headwinds from the sharp fall in the price of oil, a key export. Given elevated external risks, Directors stressed the need for stepped-up efforts to further enhance the resilience of the economy. They supported an eventual exit from the Flexible Credit Line arrangement with the Fund once external risks have receded. Directors commended the authorities for their commitment to the structural fiscal rule. They highlighted the importance of mobilizing non-oil revenues to meet the authorities' medium term fiscal targets while protecting social and infrastructure spending. This requires a comprehensive tax reform, with the objectives of simplifying the tax structure, increasing progressivity, broadening the tax base, and improving tax administration. Directors looked forward to the recommendations of the recently established expert commission on these matters. Directors supported the broadly neutral stance of monetary policy, but encouraged the authorities to stand ready to take appropriate action if growth falters. They noted that the current level of official international reserves provides adequate insurance in normal times, and that the exchange rate has adjusted flexibly in line with fundamentals. Directors considered that the widening current account deficit, largely financed through foreign direct investment, is likely to narrow over time on the back of the exchange rate depreciation and ongoing fiscal consolidation. Directors noted that the financial system is sound, profitable, and well-provisioned, with low exposure to the oil sector. They commended the authorities for the progress in addressing cross- border risks and strengthening the regulatory and supervisory frameworks. Continued efforts are nonetheless crucial to boost the resilience of financial institutions, and to strengthen supervision of complex financial conglomerates. Directors also underscored the importance of further improving risk-based supervision, enhancing regional cooperation primarily in Central America, deepening the capital market, and promoting financial inclusion. Directors welcomed the authorities' inclusive growth agenda. They agreed that key priorities are to reduce informality in the economy, improve competitiveness and infrastructure, and foster social mobility, especially through better education and health care. Directors recognized the benefits of the authorities' fourth generation road investment program-implemented with appropriate funding and safeguards-in reducing infrastructure gaps and helping diversify sources of growth. More broadly, they supported initiatives to promote private participation in the economy, including through divestiture of a public utility company. =================================== D O M I N I C A N R E P U B L I C =================================== CENTRAL BANK: Trims Benchmark Rate From 5.25% to 5.0% ----------------------------------------------------- Dominican Today reports that the Central Bank disclosed a decrease of its monetary policy benchmark rate for a third consecutive month, in this occasion a decline of 25 basis points, from 5.25% to 5.00% per annum starting June 1. It said the decision places this year's cumulative rate reduction at 125 basis points, according to Dominican Today. According to the short term liquidity management formula, the overnight rate is reduced from 3.75% to 3.50% per annum and the rate of expansion facilities (repos) decreased from 6.75% to 6.50% per annum, the report discloses. Outlook "The decision to cut the benchmark rate was adopted after analyzing the national macroeconomic picture, especially the balance of risks around inflation projections and the evolution of the relevant international environment and its impact on market expectations and the Dominican economy," the Central Bank said on its website, the report notes. "It's expected that the policy decision will impact positively on economic growth without jeopardizing the inflation target in the policy horizon," the report adds. SIERRA BAUXITA: Dominican Republic Halts Bauxite Mine ----------------------------------------------------- Dominican Today report that Energy and Mines (MEM) Minister Antonio Isa Conde said the mining company Sierra Bauxita Mr. Conde Dominicana was formally notified on May 28 not to extract or export minerals based on the contract signed with the State in 2006. Mr. Conde warned that Sierra Bauxita or any other company which represents it "must refrain from contracting boats to haul bauxite out of Cabo Rojo port" as of June 30, according to Dominican Today. In a statement, the official said mining operations based on that contract, extensions or renewals won't be valid after the date specified, for which any shipment of bauxite is unauthorized, the report relays. He said Energy and Mines notified Sierra Bauxita vice president Harry Dawson, with copy to its contractor Dovemco, the report says. The report discloses that the announcement comes just hours after Sierra Bauxita Dominicana announced the reopening of its operations with promises to carry out a social plan for the community, which MEM said it "reacted with surprise." "It's really strange that three days after receiving the contract termination notice by the Mining Dept., Sierra Bauxita Dominican publishes a statement in the media announcing a supposed social plan, profit-sharing and the continuation of its operations, " Isa said, the report adds. Integral Development Plan The official said bauxite extraction at Pedernales was halted as a government prerequisite to enact the integral development plan for sustainable tourism in the region, which he affirms will bring greater benefits to communities in the medium and long term preserving the environment with improved living conditions, the report relays. The report notes that Isa Conde said the Presidency will provide the details and scope of the project in due time. "The government has pledged alternatives to the community that depends on the mining industry, to make the transition to an integral development plan which will be much more beneficial," the report quoted Mr. Conde as saying. Mr. Conde said the MEM in fact has already provided resources to take the first steps in that direction, "starting with Pedernales," the report adds. ================= G U A T E M A L A ================= CENTRAL AMERICA BOTTLING: S&P Affirms BB CCR; Outlook Still Stable ------------------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB' corporate credit and issue-level ratings on The Central America Bottling Corporation (CBC). The outlook on the corporate credit rating remains stable. S&P's "fair" business risk profile reflects CBC's long experience in the beverage market, its diversified product portfolio, solid market position, large distribution network with more than 510,000 points of sale, strong brand recognition, and its strategic alliances with AmBev - Companhia de Bebidas das Americas and with PepsiCo Inc. which provides CBC the perpetual exclusive right to distribute and sell its products in Central America. The constraining factors are, in S&P's view, difficult market conditions and intense competition in most of the countries where CBC operates, its exposure to raw material price volatility and to foreign currency fluctuation, but the hedge arrangements and its long-term contracts with suppliers mitigate this risk. In addition, S&P believes that CBC's operations remain highly concentrated in countries that S&P views as having a "high" or "very high" country risk, such as Guatemala, Ecuador, Jamaica, Honduras, and other countries in Central America. S&P's "significant" financial risk profile reflects the company's credit metrics which remained fairly in line with S&P's expectations in 2014 and with its rating on it. CBC posted solid results in 2014 despite Jamaican dollar's devaluation and higher taxes on sugar beverages in Mexico. S&P expects CBC's credit metrics to improve over the next few years but still align with S&P's "significant" financial risk profile assessment. In S&P's view, the company will achieve this through lower production and operating expenses and the likely reduced capex, as CBC completed its expansion program last year. Therefore, S&P believes that CBC will generate positive FOCF, which will allow the company to gradually deleverage its capital structure. ============= J A M A I C A ============= JAMAICA: Trade Deficit Continues to Improve ------------------------------------------- RJR News reports that Jamaica's trade deficit continues to show improvement on lower prices for oil and the sliding dollar. Data released by the Statistical Institute of Jamaica (Statin) show the trade deficit -- that is the gap between imports and exports -- declined by seven per cent in the first two months of the year, according to RJR News. The report notes that the trade deficit over January and February was US$603 million, down from $650 million a year ago. That came as both imports and exports fell, but the impact of the decline in exports was much bigger, the report relates. The report discloses that what caused imports to fall was a significant decline in both the value and the quantity of oil brought into the country. Food imports and crude materials also recorded lower imports. On the flip side, declines in the volume of manufactured goods sold abroad was chiefly responsible for the fall in exports, the report adds. NORANDA BAUXITE: In Bauxite Levy Stand-off With Jamaica ------------------------------------------------------- Dashan Hendricks at RJR News reports that the Jamaican Government has filed an injunction to prevent Noranda Bauxite Company from exporting any more of the mineral until a dispute with the company has been resolved. The injunction was filed in the Supreme Court on May 29, seeking to stop Noranda from exporting bauxite until a dispute over the payment of the levy is settled, according to RJR News. The Government is insisting on Noranda paying the Bauxite Levy for every ton of the mineral that is exported, while Noranda contends that it is entitled to withhold these payments, notes the report. Payments of the levy, which were suspended in 2010 but should have re-started in February this year, are yet to come into the coffers of the government, the report notes. The latest government accounts released show $147 million in levy that was budgeted for April was not paid, the report relays. Dispute The dispute with Noranda started in January. RJR News obtained a copy of the document, filed in the Supreme Court, which showed a string of correspondence between the Government and Noranda, dating from February 11 to March 27, after which the dispute was sent to arbitration, the report discloses. The report notes that the injunction suggests that Noranda has been stalling on the arbitration proceedings, while it continues to export bauxite from Jamaica. But the Government wants the exports to stop, because it fears that after the material is exported, recovering the outstanding revenue will prove too difficult, even with the authority of a court order, the report says. The Government is reportedly basing that opinion on the fact that Noranda has been facing financial difficulties, which have worsened in the last year, the report relays. Financial statements obtained on the company, and which formed part of the affidavit filed in the injunction, show Noranda and its parent company, Noranda Holdings, have been experiencing deteriorating performances and a weakened financial position since 2010, the report adds. Weakened Position The company is barely able to cover its current liabilities; it has accumulated losses of almost US$ 29 in the last three years, with $20 million occurring last year alone, according to the report. Noranda has not been covering its basic operating expenses during this period, with those expenses exceeding income by US$8 million last year, the report says. The company's single largest shareholder -- US based hedge fund, Apollo Global Management -- last month dumped 33 per cent of its Noranda Holdings stocks, sending the company's share price down by more than 25 per cent, says RJR News. Up to April this year, Noranda had exported just under two million tons of bauxite. With the levy at $7.56 per ton, had Noranda been paying, the Government of Jamaica would have already collected more than US$15 million from the company, the report discloses. =========== M E X I C O =========== NEMAK S.A: S&P Affirms 'BB+' CCR; Outlook Remains Stable --------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+' global scale corporate credit and issue-level ratings on Nemak S.A. de C.V. (Nemak, formerly Tenedora Nemak S.A. de C.V.). S&P also affirmed its 'mxAA-' national scale corporate credit rating. The recovery rating on Nemak's $500 million (about MXN7.5 billion) senior unsecured notes remains unchanged at '3', indicating S&P's expectation of a meaningful (50% to 70%; upper half of the range) recovery in the event of payment default. The outlook on the corporate credit rating remains stable. Nemak's business risk profile reflects the company's strong and fairly stable operating margins stemming from its efficient operations, worldwide leading position in the aluminum components casting sector for the auto industry, geographically diversified operations, close and long-term relationship with key customers, and technologically advanced processes. On the other hand, Nemak derives about 60% of its revenues from the North American market, more than 50% from the three major U.S.-based automakers--Ford Motor Co., General Motors Co. (GM), and Chrysler Group LLC--about 85% from manufacturing cylinder heads and engine blocks. The factors combined with the cyclical nature of the auto industry constrain the company's business risk profile. Nemak's production volumes have risen thanks to the ongoing recovery in the North American market and a modest recovery in the European market; the closing of new contracts with original equipment manufacturers (OEMs) in 2014; and market trends that demand a higher usage of aluminum to comply with regulation of lighter vehicles and more efficient fuel consumption rates. Nevertheless, S&P believes that Nemak's product mix and customer base will remain concentrated in cylinder heads and engine blocks and with Ford, GM, and Chrysler, respectively. S&P's assessment of Nemak's "significant" financial risk profile reflects the company's continued increase in revenues from new agreements, stronger key financial ratios, and "adequate" liquidity. On the other hand, it incorporates the company's growth strategy through debt-financed acquisitions and significant capital expenditures. For the 12 months ended March 31, 2015, Nemak's consolidated debt to EBITDA was 2.1x, FFO to debt was 38.4%, and free operating cash flow (FOCF) to debt was 13.6%, compared with 2.0x, 40.7%, and 19.2%, respectively, during the same period in 2014. These are aligned to the rating category despite higher debt. S&P's base case assumes: -- U.S., Mexico, and eurozone GDP growth of 3%, 3%, and 1.5% for 2015, respectively; -- The U.S. light-vehicle market recovers to pre-crisis levels, continued growth in China, and modest recovery in Europe; -- Revenue growth of about 8% in 2015 in Mexican pesos mainly thanks to cylinder heads segment, plant operations in Russia, and the effect of peso depreciation. Revenue increase of about 7% in 2016 in Mexican pesos due to continued growth in the cylinder heads and monoblocks markets, start of operations of the new plant in Mexico for monoblocks, cylinders and transmissions, the ramp-up of the plant in Russia, and the effect of peso depreciation; -- EBITDA growth of about 7.5% in 2015 and 7.0% in 2016, both in Mexican pesos, stemming from operating efficiencies, which translate into EBITDA margins of about 15% in 2015 and 2016; -- Annual capital expenditures of about MXN6.5 billion (about $435 million) in 2015 and 2016, mostly for platform expansion; -- No acquisitions; -- Dividends of about MXN1.2 billion (about $80 million) in 2015 and 2016; and -- Issuance of long-term debt for about MXN7.5 billion (about $500 million) in 2015 to refinance maturities. Based on these assumptions, S&P arrives at these credit measures in 2015 and 2016: -- Debt to EBITDA of about 2.0x in 2015 and 1.8x in 2016; -- FFO to debt of about 38% in 2015 and 42% in 2016; and -- FOCF to debt of about 5% in 2015 and 9% in 2016. S&P's global scale long-term corporate credit rating on Nemak incorporates one-notch uplift from its 'bb' stand-alone credit profile (SACP) to reflect S&P's view that Nemak is a "moderately strategic" subsidiary for Alfa S.A.B. de C.V. (BBB/Stable/--), which owns 93.24% of the company. S&P assess Nemak's liquidity as "adequate," based on S&P's view that the company's sources of liquidity will exceed its uses by at least 1.2x for 2015 and 2016 even if our forecasted EBITDA declines by 15%. Nemak has a comfortable debt maturity profile, and S&P expects its cash flow generation to be sufficient to cover its working capital needs, capital expenditures, and dividend payments. S&P's liquidity analysis also incorporates its view that the company has the capacity to withstand high-impact, low- probability events without refinancing. S&P also considers that Nemak has good relationship with banks, good standing in the debt market, and more prudent risk management since Alfa implemented new policies and procedures. Principal liquidity sources: -- Cash and short-term investments of about MXN995.6 million (about $66 million) as of March 31, 2015; -- Projected FFO of about MXN7.8 billion (about $520 million) for the next 12 months as of March 31, 2015; and -- Committed credit lines availability of about MXN3 billion (about $200 million) maturing between 2018 and 2020. Principal liquidity uses for the following 12 months as of March 31, 2015: -- Debt maturities of about MXN5.4 billion (about $360 million); -- Working capital outflows of about MXN270 million (about $18 million) for the next 12 months; and -- Capital expenditures of about MXN3.3 billion (about $220 million) for the next 12 months. The stable outlook reflects S&P's expectation that the company will maintain its key credit metrics in line with its "significant" financial risk profile in the next two years, including debt to EBITDA of about 2.0x and FFO to debt at about 40% due to the positive recovery prospects for the sector. S&P also believes that Nemak will maintain an EBITDA margin of at least 15% for the next two years due to its efficient cost structure, leading position in the market, long-term relationship with OEMs, and already signed platform contracts. S&P could downgrade Nemak if its operating performance deteriorates due to adverse conditions in the global automotive industry, hurting its cash flow generation and liquidity and resulting in weaker-than-expected ratios. S&P could also lower the ratings on Nemak if it pursues more debt-financed acquisitions than S&P incorporated in its analysis, which could drive its debt to EBITDA higher than 3.0x and FFO to debt below 30% on a sustained basis. S&P could upgrade the ratings on Nemak if it continues to strengthen its key financial ratios--especially if its debt to EBITDA remains below 1.5x and FFO to debt of more than 45%--it improves its geographic, client, and product concentration with, for instance, less than 50% of its revenues coming from its top three customers, and it maintains its worldwide leading position in the aluminum components casting sector of the auto industry. ======= P E R U ======= SAN MIGUEL: Moody's Alters Outlook to Negative, Affirms Ba2 CFR --------------------------------------------------------------- Moody's Investors Service changed San Miguel Industrias PET S.A.'s outlook to negative. At the same time, Moody's has affirmed SMI's Ba2 global scale corporate family rating and the Ba2 rating at its US$200 million Senior Unsecured Notes due 2020. The negative outlook primarily reflects SMI's weaker than originally anticipated credit metrics, specially its adjusted leverage ratio of 5.2x as of December 2014. Following the issuance of its US$200 million notes in October 2013, we expected the company to deleverage towards a 4.0x adjusted DEBT/EBITDA within a year horizon. Mainly as a result of delays in the international business development in Colombia and Ecuador we now project that it could take SMI more than an additional year to approach such levels. Moreover, although SMI will not face material debt maturities in the short term, the company has a tight liquidity position as of December 2014 and, even foreseeing liquidity improvements during 2015, there's practically no cushion in case of an external shock. The Ba2 rating continues to reflect SMI's strong position as a leading regional player in the production of diversified PET preforms and bottles for food & beverage and consumer markets, as well as its increasing geographical diversification. Over the past years, the company has demonstrated its ability to pass through costs to customers avoiding material impacts on operating margins. The ratings consider SMI's advantageous position from its intensive use of modern technology and the existence of long term contract agreements with its main clients Also incorporated in the ratings is its ownership by large conglomerate Intercorp Peru Ltd. (Ba2 stable), which also owns one of the largest bank in Peru, Interbank (Baa2 stable). Moody's believes that SMI's business model based on long term commercial agreements with main bottlers and in-house operations increases switching costs and secures a sizeable channel of sales. Nevertheless, the Ba2 rating is still mainly constrained by the company's reduced size and scale as compared to global industry peers and its production reliance on a limited number of raw materials, especially resin, which potentially exposes it to downside risks in a shortage scenario. Moody's cautions that a rating downgrade could be triggered if the company fails to reduce leverage as projected or if its credit metrics deteriorate materially whether due to operating difficulties or further potential deterioration in its market leading position. Specifically, a downgrade could result if adjusted leverage remains above 4 times and EBIT/Interest expense ratio below 3 times for an extended period. Although unlikely in the intermediate term, the ratings could experience upward pressure if the company were to increase its size and scale while sustaining its operating margins, its market position and improving its financial profile. The principal methodology used in these ratings was Global Packaging Manufacturers: Metal, Glass, and Plastic Containers published in June 2009. Headquartered in Lima, Peru, San Miguel Industrias PET S.A ('SMI'), is a Peruvian manufacturer and distributor of Polyethylene Terephthalate (PET plastic) preforms and bottles utilized in food & beverage and consumer markets. With operations in Peru, Ecuador, Panama, El Salvador and Colombia , the company possess one the new recycling PET resin plants in LatAm. As of last fiscal year ended December 31, 2014, SMI reports total revenues of USD 199 million. ================================ T R I N I D A D & T O B A G O ================================ COLONIAL LIFE: Halt Payments to Former Directors Says Permell ------------------------------------------------------------- Leah Sorias at Trinidad Express reports that the Colonial Life Insurance Company Ltd. (CLICO) Policyholder's Group has expressed outrage at the move by CLICO to pay the policies of ten former directors and their companies. The group's president, Peter Permell, called on the Central Bank and Minister of Finance to immediately stop the payments, according to Trinidad Express. The report notes that CLICO has allocated $48.5 to be paid to the directors. The money will be paid without interest from 2009, the report relates. The only director who will not be paid will be CL Financial (CLF) corporate secretary Gita Sakal because the Central Bank has instructed CLICO to withhold payment because of an ongoing civil matter, the report discloses. "If what is being reported by the Sunday Express is accurate, the CLICO Policyholders Group (CPG) is not only flabbergasted, we are appalled as this has to be the height of insanity," the report quoted Mr. Permell as saying. "For it begs the question: how in good Heaven's name could anyone, in their right mind, particularly the Central Bank Governor and the Minister of Finance, allow ten individuals, comprising former CLICO directors and senior management along [with] their private companies, to be paid any money, let alone $48.5 million ahead of the 15,000 bona fide 'assenting' third-party policyholders who were promised but are yet to be made whole?" The report discloses that Mr. Permell stated: "Our feedback is that many policyholders are beginning to feel betrayed since these CLICO directors are persons who would have contributed in one way or the other by their mismanagement, negligence, inaction or being complicit in the collapse of CLICO in 2009; and in some instances against whom legal action has been initiated, never appeared before the CLICO commission of enquiry and to whom Salmon letters outlining the case against them would have already been sent." Mr. Permell said assenting policyholders are the 15,000 patriots who cooperated with the Government and the Central Bank by accepting the Government's offer of zero-coupon bonds and CLICO Investment Fund units in 2012 and, in so doing, helped save the financial sector from contagion and systemic risk, the report relays. "The CPG is therefore calling on the Central Bank Governor and the Minister of Finance to place an immediate halt to all payments to related parties, and to move post haste to ensure that the balance due from CLICO to all 'assenting' policyholders is paid prior to the upcoming general elections," the report quoted Mr. Permell as saying. The Express understands the directors to be paid include those who opted to pay a TT$2,000 fine instead of testifying before Sir Anthony Colman's commission of enquiry into CLICO, the report adds. About CLICO Colonial Life Insurance Company Ltd. (CLICO) is a member of the CL Financial Group. CL Financial Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company by Cyril Duprey, Colonial Life Insurance Company was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. * * * As reported in the Troubled Company Reporter-Latin America on July 7, 2014, Trinidad Express said that the Central Bank has placed the responsibility of voluntary separation package (VSEP) negotiations for workers at insurance giant Colonial Life Insurance Company Ltd. (CLICO) with the company's board, after which it will review accordingly, the bank said in a statement. The bank's statement follows protest action by CLICO workers, supported by their union, the Banking, Insurance and General Workers' Union (BIGWU), outside the Central Bank in Port of Spain, according to Trinidad Express. In a separate TCRLA report on June 26, 2014, Caribbean360.com said that the Trinidad and Tobago government has welcomed an Appeal Court ruling that the Attorney General Anand Ramlogan said saves the country from paying out more than TT$1 billion (TT$1 = US$0.16 cents) to policyholders of the cash-strapped CLICO. The Appeal Court overturned the ruling of a High Court that ruled members of the United Policyholders Group (UPG) were entitled to be paid the full sums of their polices. CLICO financially caved in on itself at the end of 2008 after the investment instruments of major policyholders matured and they wanted hundreds of millions of dollars they were owed. On Aug. 6, 2013, the TCR-LA, citing Caribbean360.com, said that over TT$8 billion worth of CLICO's profitable business will be transferred to Atruis, a new company that will be owned by the state. The Trinidad Express said that the Cabinet approved the transfer as the Finance and General Purposes Committee continues to discuss a letter of intent hammered out by the Ministry of Finance and CL Financial's 400 shareholders, which envisions taxpayers will recover the more than TT$20 billion Government has injected since 2009 to keep CL subsidiary CLICO and other companies afloat. *********** 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 * * *