/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/151001.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, October 1, 2015, Vol. 16, No. 194 Headlines A R G E N T I N A BANCO INTERAMERICANO: S&P Affirms 'BB+' ICR, Outlook Negative B R A Z I L BRAZIL: Broadest Inflation Index Faster Than All Estimates COSAN LIMITED: Fitch Affirms 'BB' Issuer Default Ratings LOS PORTALES: Fitch Affirms & Withdraws 'B+' Ratings C A Y M A N I S L A N D S ACME LEASING: Sole Shareholder to Hear Wind-Up Report on Oct. 6 BLACKSTONE RNW: Shareholders' Final Meeting Set for Oct. 8 ECHO INVESTMENT: Creditors to Hold First Meeting on Oct. 14 HENDERSON GLOBAL: Shareholder to Hear Wind-Up Report on Oct. 30 INVISTA SSA: Placed Under Voluntary Wind-Up LINCOLNSHIRE LTD: Members' Final Meeting Set for Oct. 30 MOKSHA CAPITAL: Shareholders' Final Meeting Set for Oct. 15 OLD HICKORY: Shareholders' Final Meeting Set for Oct. 19 OLD HICKORY MASTER: Shareholders' Final Meeting Set for Oct. 19 PBR COMMODITY: Shareholders' Final Meeting Set for Oct. 8 PHOENIX VALUE: Shareholders' Final Meeting Set for Oct. 6 REGISTER.COM GP: Shareholders' Final Meeting Set for Oct. 6 WATSON FALL: Shareholders' Final Meeting Set for Oct. 26 D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: No Wage Hike for Workers in 2016 Budget J A M A I C A JAMAICA: S&P Affirms 'B' Sovereign Rating, Outlook Remains Stable JAMAICA: Financial Sector Gaining Strength, BOJ Says M E X I C O MEXICO: To Continue Daily Dollar Auctions Amid Volatile Markets P U E R T O R I C O PUERTO RICO: Officials to Testify on Crisis Before Senate Panel - - - - - ================= A R G E N T I N A ================= BANCO INTERAMERICANO: S&P Affirms 'BB+' ICR, Outlook Negative ------------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'BB+' global scale issuer credit rating on Peru-based midsize bank Banco Interamericano de Finanzas S.A. (BanBif). The outlook is negative. S&P subsequently withdrew the rating at the issuer's request. The ratings on BanBif reflect its "moderate" business position, "adequate" capital and earnings, "adequate" risk position, "average" funding, and "adequate" liquidity, as defined in S&P's criteria. The bank's stand-alone credit profile was 'bb+'. =========== B R A Z I L =========== BRAZIL: Broadest Inflation Index Faster Than All Estimates ---------------------------------------------------------- David Biller at Bloomberg News reports that Brazil's broadest measure of price increases accelerated to the fastest pace in five months as the central bank says it has tightened policy enough to slow inflation toward the target. Wholesale, consumer and construction prices, as measured by the IGP-M index, rose 0.95 percent in September, the Getulio Vargas Foundation, an education and research institution based in Rio de Janeiro, said on its website, according to Bloomberg News. That was more than all forecasts from 29 economists surveyed by Bloomberg, whose median estimate was for a 0.8 percent increase. The index, which is weighted 60 percent in wholesale prices, rose 8.65 percent in the past 12 months, Bloomberg News notes. Bloomberg News relates that inflation in Latin America's largest economy is running at more than double the official target, as the currency loses value and pushes up the price of imports. The central bank ended its monetary tightening cycle this month, holding interest rates at their highest since 2006, Bloomberg News notes. Even so, traders are betting the monetary authority will be forced to tighten further, Bloomberg News discloses. Producer prices jumped 1.3 percent in the month after rising 0.2 percent in August, the FGV said on its website. Consumer prices as measured by the index increased 0.32 percent, from 0.24 percent the prior month, Bloomberg News notes. In its quarterly inflation report on Sept. 24, central bank directors said the deepest recession in 25 years will more than offset the impact of the weaker currency on prices, allowing it to hold interest rates even as the inflation outlook deteriorates. Brazil's real has lost 35 percent against the U.S. dollar so far this year, the most of 16 major currencies tracked by Bloomberg. The nation's consumer confidence has likewise plummeted to an all- time low, according to the FGV. COSAN LIMITED: Fitch Affirms 'BB' Issuer Default Ratings -------------------------------------------------------- Fitch Ratings has affirmed the foreign and local currency Issuer Default Ratings (IDRs) of Cosan Limited at 'BB'. The Rating Outlook is Stable. KEY RATING DRIVERS Cosan Limited's ratings reflect the sound business model of its main asset, Cosan S.A Industria e Comercio (Cosan; Fitch foreign and local currency IDRs of 'BB+' and long-term National Scale rating of 'AA(bra)'), which accounts for 80% and 75% of Cosan Limited's consolidated revenues and EBITDA, respectively, and 70% of dividends received in the last 12 months (LTM) ended June 30, 2015. Cosan Limited's business profile is supported by a diversified asset portfolio and predictable cash flow that partly softens the inherent volatilities of the sugar and ethanol industry. The one-notch difference compared to Cosan's ratings incorporates the holding company nature and inherent structural subordination of Cosan Limited's debt and the links between the company's operating cash flows to dividends received from Cosan. The ratings are constrained by Cosan Limited's current stake in Cosan Logistica S.A (Cosan Logistica), which owns Rumo Logistica Operadora Multimodal S.A. (Rumo). The merger of Rumo with America Latina Logistica S.A. (ALL; 'BB-', Outlook Stable) during the first quarter 2015 had a negative impact on Cosan Limited's consolidated financials and is expected to slow down the potential deleveraging process of the Cosan group. While the logistics segment is not expected to pay dividends over the next four years, Fitch expects the remaining businesses to provide a growing and robust flow of dividends to Cosan Limited in order to pay sufficient dividends to its shareholders. The ratings also incorporate Cosan Limited's low leverage and satisfactory liquidity on a standalone basis. Holding Company nature Cosan Limited is a non-operating holding company that holds a 62% interest in Cosan, the holding company that is engaged in sugar, ethanol and energy production, and distribution of natural gas, lubricants and fuel. Cosan Limited also holds a 62% interest in Cosan Logistica. The main components of Cosan Limited's cash flows are the dividends received from Cosan and the dividends paid out to its shareholders. Robust Asset Portfolio Cosan Limited's three main assets and source of dividends in the energy segment are all rated as investment grade. Raizen Combustiveis S.A. (Raizen Combustiveis; rated 'BBB'/'AAA(bra)', Outlook Stable) is the third largest fuel distributor in Brazil, with predictable operational cash generation. Despite its more volatile results, Raizen Energia S.A. (Raizen Energia; rated 'BBB'/'AAA(bra)', Outlook Stable) is the largest sugar and ethanol company in Brazil and as such it benefits from its large business scale, which somewhat mitigates the currently challenging scenario for the sector. Companhia de Gas de Sao Paulo (Comgas; rated 'BBB- '/'AA+(bra)', Outlook Stable) is the largest natural gas distributor in Brazil, with high growth potential and predictable operational cash flow. All these businesses reported improved performance in 2014 compared to the previous year. In 2014, Comgas reported net revenues at BRL6.4 billion and stable EBITDA margin at 22.5%, while Raizen Combustiveis reported net revenues of BRL56 billion, comparing favorably to BRL51 billion in the fiscal year ended March 31, 2014. Raizen Energia reported stable revenues and operating margins of BRL9.2 billion and 28%, respectively, in 2014. The other two assets invested in by Cosan are Cosan Lubrificantes S.A. and Radar Propriedades Agricolas S.A, which add to business diversification. Cosan Limited's increasing exposure to the logistics segment that followed the merger of Rumo with ALL has enhanced its business model due to the inherent operating cash flow stability and high growth potential of this industry in Brazil. The merger is expected to contribute to broader business diversification and help the group to further lessen the cash flow volatility derived from the sugar and ethanol business. Fitch forecasts the logistics business will generate an average EBITDA margin of 44% over the next four years, comparing favorably to Cosan Limited's 30% historical average since March 31, 2013. Fitch does not expect the logistics segment to pay dividends over the next four years due to the massive capex necessary to improve ALL's operations. Low Leverage at Holding Level Cosan Limited posted low leverage on a standalone basis as of June 30, 2015. At the holding company level, Cosan Limited's leverage measured as net debt-to-EBITDA plus dividends received was 0.98x as per Fitch's calculations, comparing favorably to 1.24x as of Dec. 31, 2014. The one-notch difference versus the ratings assigned to Cosan is due to the holding company nature and inherent structural subordination of Cosan Limited's debt and the links between the company's operating cash flows to dividends received from Cosan. The rating is also constrained by the possibility of new debt being issued by Cosan Limited to finance new acquisitions under the group's aggressive expansion plan. Cosan Limited's leverage was high on a consolidated basis due to the merger and consolidation of ALL's financials into Cosan Limited's. On a consolidated basis, the net adjusted debt-to- EBITDAR was high at 6.8x when dividends received from non- consolidated subsidiaries are factored into EBITDAR figures. On a pro forma basis that assumes 12 months of operations for ALL, consolidated net adjusted debt-to-EBITDAR was still high, but lower at 6.2x as per Fitch's calculations. Fitch expects the merger between Rumo and ALL to slow down the deleveraging process of the group, and for Cosan Limited's consolidated net debt-to- EBITDAR plus dividends received to stay above 5x over the next three years. KEY ASSUMPTIONS -- As a majority shareholder of Cosan, Cosan Limited is expected to benefit from an increased flow of dividends coming from Comgas, Raizen Combustiveis and Raizen Energia S.A over the next two years, reaching around BRL1 billion per year. -- Fitch does not expect Cosan Logistica or any of its subsidiaries to pay dividends over the next four years given the massive capex program to be carried out by ALL. -- In the short term, potential new issuances at Cosan Limited will only be used to refinance existing debt. For the medium term, Fitch incorporates the possibility of Cosan Limited taking on new debt to finance the group's aggressive expansion plan and acquisitions. -- Cosan Limited's financial flexibility relative to its access to the debt and capital markets, in combination with dividends received from Cosan, ensures strong refinancing capacity. Fitch believes Cosan Limited has the flexibility to reduce the payouts to its shareholders if necessary. RATING SENSITIVITIES Future developments that may, individually or collectively, lead to a negative rating action include the deterioration of the credit profile of either Cosan or Cosan Logistica. Fitch will be monitoring the pace at which the potential sizeable capex program at ALL is concluded and a downgrade could occur if Cosan Limited fails to deleverage on a consolidated basis in the medium term. An upgrade is unlikely in the short- to medium-term as the group's growth strategy in the logistics segment should continue to make a relevant deleveraging process difficult. LIQUIDITY Cosan Limited posted healthy debt coverage ratios on a standalone basis as of June 30 2015. The company's cash plus dividends received covered its short-term debt by 3x as of June 30 2015. Cosan Limited posted a cash position of BRL3 million and total debt of BRL378 million, of which short-term debt was BRL103 million. Dividends received amounted to BRL300 million in the LTM ended June 30 2015. Cosan Limited's total debt consisted of bank debt taken on to finance the acquisition of Cosan shares. The group's strong financial flexibility relative to its access to the debt and capital markets, in combination with dividends received from Comgas and Raizen, ensures strong refinancing capacity for Cosan Limited. While the dividends received from Cosan have recently fallen short of the dividends paid to its shareholders, Fitch believes Cosan Limited has the flexibility to reduce the payouts to its shareholders if necessary. FULL LIST OF RATING ACTIONS Fitch has affirmed the following ratings: Cosan Limited -- Foreign and local currency IDRs at 'BB'; The Rating Outlook is Stable. LOS PORTALES: Fitch Affirms & Withdraws 'B+' Ratings ---------------------------------------------------- Fitch Ratings has affirmed and withdrawn the ratings for Los Portales S.A. The Ratings Outlook was Negative at the time of the withdrawal. Fitch has chosen to withdraw Los Portales S.A.'s ratings for commercial reasons. KEY RATING DRIVERS Fitch will no longer provide rating or analytical coverage of this issuer. RATING SENSITIVITIES Not applicable. FULL LIST OF RATING ACTIONS Fitch has affirmed and withdrawn the following ratings: Los Portales S.A. -- Foreign currency long-term Issuer Default Rating (IDR) at 'B+'; -- Local currency long-term IDR at 'B+'. ========================== C A Y M A N I S L A N D S ========================== ACME LEASING: Sole Shareholder to Hear Wind-Up Report on Oct. 6 --------------------------------------------------------------- The sole shareholder of Acme Leasing One Limited will hear on Oct. 6, 2015, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Phang Thim Fatt 8 Shenton Way #18-01 Singapore 068811 BLACKSTONE RNW: Shareholders' Final Meeting Set for Oct. 8 ---------------------------------------------------------- The shareholders of Blackstone RNW Offshore Fund Ltd will hold their final meeting on Oct. 8, 2015, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Patrick Agemian Walkers 190 Elgin Avenue, George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6365 ECHO INVESTMENT: Creditors to Hold First Meeting on Oct. 14 ----------------------------------------------------------- The creditors of Echo Investment Holdings Limited will hold their first meeting on Oct. 14, 2015, at 8:00 p.m., to elect a liquidation committee and discuss other matters. The company's liquidator is: Margot MacInnis Harbour Place, Ground Floor 103 South Church Street, Camana Bay Grand Cayman KY1-9006 Cayman Islands Telephone: +1 (345) 743 8800 Facsimile: +1 (345) 743 8801 HENDERSON GLOBAL: Shareholder to Hear Wind-Up Report on Oct. 30 --------------------------------------------------------------- The shareholder of Henderson Global Commodities Fund (Cayman) Limited will hear on Oct. 30, 2015, at 9:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Kim Charaman Telephone: (345) 943-3100 INVISTA SSA: Placed Under Voluntary Wind-Up ------------------------------------------- On Sept. 2, 2015, the sole member of Invista SSA Partnership GP 1 Limited resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Turners Management Ltd. Strathvale House 90 North Church Street P.O. Box 2636 Grand Cayman KY1-1102 Cayman Islands c/o Kirsten Le Pape Telephone: +1 (345) 814 0721 LINCOLNSHIRE LTD: Members' Final Meeting Set for Oct. 30 -------------------------------------------------------- The members of Lincolnshire Ltd. will hold their final meeting on Oct. 30, 2015, at 4:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Nicola Cowan DMS Corporate Services Ltd. Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands MOKSHA CAPITAL: Shareholders' Final Meeting Set for Oct. 15 ----------------------------------------------------------- The shareholders of Moksha Capital Partners Re (A) Ltd. will hold their final meeting on Oct. 15, 2015, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Russell Smith c/o Antoine Powell Telephone: (345) 815-4558 BDO CRI (Cayman) Ltd. Governors Square, Floor 2 - Building 3 23 Lime Tree Bay Ave P.O. Box 31229 Grand Cayman, KY1-1205 Cayman Islands OLD HICKORY: Shareholders' Final Meeting Set for Oct. 19 -------------------------------------------------------- The shareholders of Old Hickory Trading Partners, Ltd will hold their final meeting on Oct. 19, 2015, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. 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 OLD HICKORY MASTER: Shareholders' Final Meeting Set for Oct. 19 --------------------------------------------------------------- The shareholders of Old Hickory Trading Partners Master Fund, Ltd will hold their final meeting on Oct. 19, 2015, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. 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 PBR COMMODITY: Shareholders' Final Meeting Set for Oct. 8 --------------------------------------------------------- The shareholders of PBR Commodity Subsidiary, Ltd. will hold their final meeting on Oct. 8, 2015, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Maureen A. Gemma, VP Eaton Vance Management c/o Barnaby Gowrie Cayman Islands PHOENIX VALUE: Shareholders' Final Meeting Set for Oct. 6 --------------------------------------------------------- The shareholders of Phoenix Value Fund will hold their final meeting on Oct. 6, 2015, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes c/o Jo-Anne Maher Telephone: (345) 814 9255 Facsimile: (345) 949 4647 Argentario Capital Advisors 94 Solaris Avenue Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands REGISTER.COM GP: Shareholders' Final Meeting Set for Oct. 6 ----------------------------------------------------------- The shareholders of Register.COM GP (Cayman) Ltd. will hold their final meeting on Oct. 6, 2015, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Alexander R. Slusky c/o Matt Bernardo Telephone: +1 (345) 914 4268 WATSON FALL: Shareholders' Final Meeting Set for Oct. 26 -------------------------------------------------------- The shareholders of Watson Fall Ltd. will hold their final meeting on Oct. 26, 2015, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Maricorp Services Ltd. c/o Roger L. Nelson Telephone: (345) 949 9710 P.O. Box 2075 Grand Cayman KY1-1105 Cayman Islands =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: No Wage Hike for Workers in 2016 Budget ----------------------------------------------------------- Dominican Today reports that the Executive Branch sent to Congress through the Senate the 2016 Budget Bill of RD$663.0 billion (US$14.7 billion), and doesn't include a wage hike for government workers. Finance Minister Simon Lizardo and Budget director Luis Reyes Santos handed the proposed legislation to Senate president Cristina Lizardo and Chamber of Deputies president Abel Martinez, along with other legislators, according to Dominican Today. In his cover letter, President Danilo Medina acknowledges that next year's fiscal deficit is projected at RD75.9 billion, or 2.3% of GDP, the report notes. The Senate is expected to debate the bill in Sept. 29's session and sent to a joint commission for study afterwards, the report relates. The 2016 budget bill doesn't include a wage hike for government workers, despite salaries as low as RD$5,500 per month, and demands for an increase from several sectors, the report adds. ============= J A M A I C A ============= JAMAICA: S&P Affirms 'B' Sovereign Rating, Outlook Remains Stable ----------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' long-term and short-term foreign and local currency sovereign credit ratings on Jamaica. The outlook on the long-term sovereign credit ratings remains stable. In addition, S&P affirmed its transfer and convertibility assessment at 'B+'. RATIONALE The rating on Jamaica continues to reflect its very high general government debt and interest burdens, which contribute to fiscal inflexibility. S&P projects the gross general government debt burden will be 118% of GDP in 2015 (Standard & Poor's deducts debt that the public-sector National Insurance Fund holds). This level is higher than most regional and global peers, but it's 10 percentage points of GDP lower than the 128% registered in 2014, largely because of Jamaica's liability management program for its Petrocaribe debt in which the government used $1.5 billion raised in the international capital market to purchase $3.25 billion owed by Jamaica to Petroleos de Venezuela SA (PDVSA) under the Petrocaribe Energy Cooperation Agreement. In addition, interest payments are likely to consume almost 29% of general government revenues in the current fiscal year, which is also much higher than Jamaica's peers. Together, these indicators lead to S&P's assessment that Jamaica's debt burden remains a credit weakness. With GDP per capita that we estimate will remain just below $5,000 in 2015, the country's economic structure continues to constrain the rating as well. S&P expects GDP per capita growth will continue its below-average performance, growing by less than 1%, following negative average growth over the past five years. Jamaica's liability management program will likely contribute to an improvement in the country's external debt position in 2015. At the same time, S&P expects a drop in Jamaica's current account deficit on lower fuel imports and higher tourism earnings. Nevertheless, S&P expects that these improvements--which it forecasts will lead to external debt net of international reserves and financial sector assets of 132% of current account receipts (CAR) in 2015, and external financing needs of 110% of CAR and foreign exchange reserves--will still imply significant external liquidity needs and indebtedness levels. In S&P's opinion, Jamaica's external position therefore remains a credit weakness. On the other hand, Jamaica's stable democracy and open political system that sustains political stability and policy predictability support the rating. The government, led by Prime Minister Portia Simpson-Miller of the People's National Party, has a majority in Parliament and does not need to face elections until late 2016. Over the past two years, the government has strengthened its fiscal credibility after consistently meeting reform targets, and S&P expects it to run a primary surplus (the budget balance less interest payments) of at least 7.5% of GDP for the third consecutive year in 2015/2016. The government has also recently reached an agreement with the Jamaica Confederation of Trade Unions and the Jamaica Teachers' Association to increase salaries by 7% over two years, ending in 2016/2017. However, some central government workers are still negotiating with the government, which could pose risks to the government's ability to meet its goal of bringing down the public- sector wage bill from just above 10% of GDP in 2014/2015 to 9% over the next two years. In addition, pension reform remains on the government's agenda, in light of the unsustainability of the current system. Legislation is set to be put forward by year-end and expected to be implemented by 2016. The government also has a long list of growth-inducing reforms on its agenda, including measures to improve the country's irrigation systems and continued progress on strategic investments, including the global logistics hub initiative, agro-parks, energy diversification, and encouraging growth in business-process outsourcing. S&P expects that it will take several years before the full impact of these projects on growth and unemployment will be realized. In addition, S&P expects drought conditions to hinder economic growth for the second consecutive year in 2015, contributing to mild real GDP growth of 1.2%, following low growth of 0.7% in 2014. "We consider Jamaica's monetary policy neutral to the rating. Our assessment balances the country's managed floating exchange rate regime with the government's limited monetary policy flexibility-- since the high level of government debt hampers the transmission mechanism of policy. Inflation averaged more than 10% over the past 10 years but has recently dropped significantly, partly because of lower fuel and electricity prices. As of August 2015, inflation fell to 3.5%, which is the lowest level reached in almost 50 years. This drop has led the Bank of Jamaica to lower interest rates to historically low levels. The central bank has also worked with the central government over the past couple of years to strengthen the financial system by introducing a new Banking Services Act, and it has recently advanced on securities dealers reform, which should provide more security for securities dealers' retail clients," S&P said. OUTLOOK The stable outlook balances Jamaica's growing fiscal credibility, stabilized debt trajectory, and strengthened external liquidity with its public-sector reform challenges, weak growth, and vulnerability to external shocks. S&P may raise the ratings if Jamaica is able to gradually reduce its government debt burden and achieve sustained improvement in external liquidity. That, combined with a sustainably higher economic growth rate over the next three years and significant improvement in the effectiveness of monetary policy transmission, would improve the country's ability to withstand adverse external shocks and lead to an upgrade. Conversely, S&P may lower the ratings if, contrary to its expectation, the government exhibits slippage on reform targets, which could diminish economic confidence and limit the country's growth prospects. Similarly, external shocks that unexpectedly weaken the currency could increase the government's debt burden, put pressure on interest rates, and boost inflation. Failure to respond in a timely and forceful manner to such adverse developments could erode the country's financial profile, leading to a downgrade. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee agreed that the flexibility and performance fiscal assessment had improved. All other key rating factors were unchanged. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. RATINGS LIST Ratings Affirmed Jamaica Sovereign Credit Rating B/Stable/B Senior Unsecured B Transfer & Convertibility Assessment B+ JAMAICA: Financial Sector Gaining Strength, BOJ Says ---------------------------------------------------- RJR News reports that Jamaica's financial sector is reportedly showing improved health, which should help it to withstand economic shocks. That's the finding of the latest stress test carried out by the Bank of Jamaica (BOJ) on the country's banks and securities dealers, according to RJR News. The report notes that the findings were reported by the International Monetary Fund (IMF) in its latest review of the Jamaican economy. The IMF said the stress test, which was conducted in March this year, indicates an improved resilience to shocks for banks and securities dealers, the report relates. Stress tests are often carried out to determine if financial institutions are well equipped to deal with an economic crisis. The tests also help to ensure that banks are not engaging in practices that will create a negative outcome, the report adds. * * * As reported in Troubled Company Reporter-Latin America on July 29, 2015, Standard & Poor's Ratings Services assigned its 'B' issue rating on Jamaica's up to US$2 billion in bonds issued in two tranches. The first tranche is for up to US$1,350 million due in 2028. The second tranche is for up to US$650 million due in 2045. The government will use the proceeds to purchase debt that Jamaica owes to Venezuela as well as to finance the government's 2015/2016 budget. =========== M E X I C O =========== MEXICO: To Continue Daily Dollar Auctions Amid Volatile Markets --------------------------------------------------------------- EFE News reports that Mexico's daily auctions of U.S. dollars will continue for another two months due to the recent volatility on global financial markets, the Bank of Mexico said. A total of $200 million will be offered without a minimum bid from Oct. 1 to Nov. 30, the Mexican Exchange Rate Committee, made up of central bank and Finance Secretariat officials, said in a statement, according to EFE News. The report notes that an additional $200 million will be auctioned off when the exchange rate falls more than 1 percent, compared to the previous close. The Exchange Rate Committee said it would continue monitoring trading conditions on the foreign currency market and as Nov. 30 approached, "the convenience of extending the period will be determined," the report relates. The report says that the committee decided to keep the measures, which were implemented on July 31, in place to provide liquidity to the foreign exchange market in light of the current foreign reserve level and the nearly $70 billion line of credit that Mexico secured from the International Monetary Fund. ====================== P U E R T O R I C O ====================== PUERTO RICO: Officials to Testify on Crisis Before Senate Panel --------------------------------------------------------------- Mary Williams Walsh at The New York Times reports that Puerto Rican officials will appear before a skeptical United States Senate panel to explain why the island may need federal assistance by the end of the year and how lawmakers preoccupied with the federal debt might help without setting an unwelcome precedent. Officials on the island recently warned that their government would, in effect, run out of cash in November, even though it owes big payments to creditors in December and early January, according to The New York Times. The report relates that Puerto Rico has not issued audited financial statements for the last two years, and some members of the Senate Finance Committee say that before the federal government commits funds to help tide it over its crisis, they need to know more about the federal money the island has already received and how it was used. "It would be extremely difficult to ask Congress to make important decisions, and appropriately allocate resources, without first understanding what the facts are and what problems need to be fixed," said Senator Orrin G. Hatch, Republican of Utah, who is chairman of the finance committee, the report notes. The report discloses that Mr. Hatch said that Puerto Rico had suffered for years with high unemployment and a shrinking economy, and had used borrowed money to provide some semblance of normalcy for the island's residents. In light of the outcome, he said, it made sense to consider whether Puerto Rico might hold lessons for other American jurisdictions. "Despite some recent declines, our federal deficits under current law will soon rise again," he said. "Federal debt will grow, as it has in Puerto Rico, to beyond 100 percent of the size of our economy," Mr. Hatch added. Mr. Hatch said it was not hard to imagine Americans on the mainland struggling with "the devastating effects from unsustainable debt that are now being felt by Americans living and trying to work in Puerto Rico," the report relays. The hearing will be the first on Puerto Rico's troubles since Gov. Alejandro Garcia Padilla announced in June that the debt was "unpayable" and called for a negotiated moratorium, the report notes. The report relays that since then, a working group of top Puerto Rican officials has been drafting a five-year plan that is meant to restore economic growth on the island and provide the means for making debt payments in the future. The working group has called for reductions in Puerto Rico's debt payments while reforms are being carried out, the report notes. But how that would be accomplished was unclear. Puerto Rico's Government Development Bank released a statement saying it hoped to negotiate a broad debt exchange, in which creditors would hand in the shaky bonds they now hold and receive new, more reliable bonds in return, the report discloses. The report relays that the bank's summary did not reveal how large the difference in value between the two groups of bonds was expected to be, but it said that the "transaction will be structured to take into account the priorities of the debt that creditors hold." That seemed to suggest that Puerto Rico would follow its existing laws for deciding which types of bonds would get priority, the report says. The island has issued many different kinds of bonds, and some investors have worried that in the process of restructuring the debt, Puerto Rico might change some of the existing priorities, the report discloses. Puerto Rico also sought to allay investors' concerns that it might have miscalculated the total concessions it would seek from investors when the negotiations begin in mid-October, the report notes. The working group issued a statement saying that it had reviewed a recent client presentation to that effect by Morgan Stanley, and found "a number of unstated, unsupported and erroneous assumptions that have significantly misled the market," the report discloses. The statement went on to list the places where its members believed Morgan Stanley had misinterpreted the five-year plan, the report relays. Morgan Stanley declined to comment because the presentation was not intended for public circulation. One member of the working group, Melba Acosta Febo, will be among those to testify, the report notes. While concerns about the ranking of Puerto Rico's creditors may surface at the hearing, the Senate Finance Committee's primary jurisdiction is over fiscal affairs, the report says. Senator Hatch said he had already requested information on federal tax policies regarding Puerto Rico from the congressional Joint Committee on Taxation, as well as several reports from the Congressional Budget Office on health policy on the island, the report notes. In the last several months, Puerto Rico officials have complained that residents of the island pay just as much Medicare and Medicaid taxes as Americans on the mainland, but in return receive benefits that are less valuable, the report relays. The senators seemed to be trying to determine what was causing the discrepancy. For example, dedicated taxes do not pay for the entire Medicare and Medicaid programs; a significant portion of the cost is also covered by personal income taxes, the report discloses. Since Puerto Ricans who live on the island are not required to pay federal income taxes, the senators were trying to learn whether that explains why they have been getting the lesser benefits, the report notes. "Questions of funding and resource allocation are always difficult," Mr. Hatch said, the report relays. "It isn't as simple as just deciding to give more health funds to Puerto Rico, because doing so would necessarily mean reduced funding for other priorities, increased taxes, or even more federal debt," Mr. Hatch added. In July, the senator wrote to the Treasury secretary, Jacob J. Lew, asking for information about federal tax programs that affect Puerto Rico, the report notes. He also asked whether the Obama administration was considering any rule changes that could increase "the flow of transfers from the general fund of the Treasury to Puerto Rico" by executive order, the report relays. In his response, Mr. Lew did not cite any coming changes in federal transfers to Puerto Rico, focusing instead on the separate question of whether Puerto Rico should be permitted to use Chapter 9 municipal bankruptcy to solve its problems, the report discloses. The current federal bankruptcy code specifically excludes it, and Mr. Lew said he believed Puerto Rico needed some sort of tested legal framework, the report adds. *********** 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 * * *