/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/151029.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 29, 2015, Vol. 16, No. 214 Headlines A R G E N T I N A SUZANO PAPEL: S&P Affirms 'BB+' Rating; Outlook Remains Stable B E R M U D A RENAISSANCE FINANCIAL: S&P Affirms 'B-/C' Counterparty Rating B R A Z I L AGERIO: Fitch Cuts LT Local and FC IDRs to 'BB'; Outlook Negative COMPANHIA SIDERURGICA: S&P Lowers Rating to 'BB-'; Outlook Neg. COSAN LTD: S&P Affirms 'BB' Rating; Outlook Remains Stable OI SA: Possible Merger with TIM No Immediate Impact on Ba3 Rating C A Y M A N I S L A N D S ACS CONSUMER: Placed Under Voluntary Wind-Up AES PANAMA: Commences Liquidation Proceedings CQS EUROPEAN: Creditors' Proofs of Debt Due Oct. 30 EDMOND DE ROTHSCHILD: Creditors' Proofs of Debt Due Nov. 3 LEGATO CAPITAL: Creditors' Proofs of Debt Due Nov. 2 NORTHERN ENERGY: Creditors' Proofs of Debt Due Nov. 3 JAT CAPITAL: Creditors' Proofs of Debt Due Oct. 30 JAT CAPITAL MASTER: Creditors' Proofs of Debt Due Oct. 30 JAT CAPITAL OFFSHORE: Creditors' Proofs of Debt Due Oct. 30 JAT SELECT: Creditors' Proofs of Debt Due Oct. 30 JAT SELECT INTERMEDIATE: Creditors' Proofs of Debt Due Oct. 30 JAT SELECT MASTER: Creditors' Proofs of Debt Due Oct. 30 WHITETIP INVESTMENT: Placed Under Voluntary Wind-Up E C U A D O R ECUADOR: Fiscal Position of NFPS Down to a Deficit of 3.5% of GDP ECUADOR: Focuses on Mining Investments to Boost Economy G U A T E M A L A COMCEL TRUST: Moody's Puts Ba1 CFR on Review for Downgrade J A M A I C A CARIBBEAN BROILERS: "No Real Cause for Concern," Says Manager P A N A M A PANAMA CANAL: S&P Raises CCR to 'BB-'; Outlook Stable T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Government Plans, Encouraging X X X X X X X X X * Global Metal Prices will Remain Weak Through 2016, Moody's Says - - - - - ================= A R G E N T I N A ================= SUZANO PAPEL: S&P Affirms 'BB+' Rating; Outlook Remains Stable -------------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'BB+' global scale ratings on Suzano Papel e Celulose S.A. (Suzano). The outlook remains stable. The stable outlook incorporates S&P's view that the company will post net debt to EBITDA of less than 3.5x and funds from operations (FFO) to net debt in excess of 30%. This will mainly depend on the company's growth strategy and the evolution of pulp prices in the short to intermediate term. S&P could revise the outlook to negative if the company's financial metrics weaken, with net debt to EBITDA of more than 4x and FFO to net debt of less than 20%. This could happen if, for example, pulp prices decline to about $580 per ton, under the exchange rate in S&P's base-case scenario (year-end exchange rate of Brazilian real [R$]4 per $1.0 in 2015, R$4.2 per $1.0 in 2016, and R$4.5 per $1.0 in 2017), or if the company undertakes significant investments. A positive rating action will be mostly linked to an improvement in the company's operating efficiency, which could occur if Suzano decreases its dependence on third parties for its supply of wood. If that happens, S&P expects to see clear and sustainable financial policies that support conservative leverage levels in the long term. ============= B E R M U D A ============= RENAISSANCE FINANCIAL: S&P Affirms 'B-/C' Counterparty Rating ------------------------------------------------------------- Standard & Poor's Ratings Services said that it has affirmed its 'B-/C' long- and short-term counterparty credit ratings on Bermuda-registered Renaissance Financial Holdings Ltd. (RFHL), the full owner of several companies that form the Russia-based investment group Renaissance Capital (RenCap). The outlook is negative. The affirmation balances S&P's view that RenCap's risk position has improved, following progress in selling noncore assets, and the fact that the company's capital position has somewhat deteriorated, and still remains under pressure due to unfavorable economic circumstances in Russia. S&P considers that the company faces challenges generating sufficient topline revenues to cover its operating costs over the cycle. In S&P's view, this earnings generation issue is exacerbated by the weak economic climate but also reflects some weaknesses in RenCap's business model that have not yet been addressed, despite the reduction of noncore assets and cuts in operating expenses. S&P's 'b' anchor for Russian securities firms reflects S&P's view of economic and industry risk in the sector. This anchor is the standard two notches below the anchor for Russian banks, which S&P derives from its Banking Industry Country Risk Assessment. The two-notch difference reflects S&P's view that securities firms in Russia face higher industry risk than banks because of their weaker institutional framework, higher competitive risk, weaker revenue dynamics, and increased funding risk due to the lack of central bank access and less liquid, more volatile domestic capital markets. While the Bank of Russia assumed supervisory functions over securities firms in 2013, regulatory oversight is still developing, with only minimum requirements in place. S&P expects this to gradually converge with banking regulatory standards, but with only modest improvement over the next two-to- three years. The competitive environment for Russian securities companies is tight, in S&P's opinion, owing to strong competition from banks and subsidiaries of state-owned banks. Further, revenues from Russian securities firms are typically more transactional and therefore more prone to volatility. Negative economic growth in Russia, significant volatility of the Russian ruble, and geopolitical tensions will continue to heighten the credit risk of securities companies' exposures in Russia. These factors are exacerbating the capital markets volatility in the country. S&P also believes that Russian securities companies' access to funding may worsen owing to high interest rates and dwindling counterparty confidence. "We base our ratings on RFHL on its 'b' anchor, and our view of the group's "adequate" business position, "weak" capital and earnings, "adequate" risk position, "moderate" funding, and "adequate" liquidity, as our criteria define these terms. In our view, however, RFHL is not currently at risk of nonpayment and is able to satisfy its financial obligations. Consequently, the broker currently does not meet our definition of 'CCC+' rating under our criteria. Therefore, we include a one-notch positive adjustment in our ratings on RFHL," S&P said. "RFHL's risk position is now "adequate," reflecting a reduced risk appetite and more balanced risk-taking policy under new management. The assessment is constrained by historical principal risk management gaps and RFHL's high risk appetite in previous years. We now see less pressure on the risk position coming from noncore assets, following massive revaluations in 2014, and we do not expect further substantial write-downs, at least in 2015. The value of the company's main noncore holding, its agribusiness in Ukraine, was almost halved to US$100 million and investments in Kenyan land (made by the group's previous management) were substituted with a performing loan from the parent Renaissance Capital Investments. We believe that RFHL's approach to valuing these investments is relatively conservative. We also take into account that the complexity of RFHL structure is diminishing and now is more comparable with peers," S&P noted. "At the same time, our assessment of RFHL's capital and earnings is revised to "weak." We expect our risk-adjusted capital ratio before adjustments for concentration and diversification to remain at 5%-6% in the next 12-18 months. We expect US$10 million-EUR15 million bottom-line net profit in 2015, while the asset base should remain steady compared with 2014. There have been notable improvements in the cost-to-income ratio, but we note that it is still above peers. The capacity of the company to improve its earnings profile is a critical factor in whether we would revise the outlook to stable, everything else being equal," S&P said. S&P's assessment of RFHL's business position as "adequate" balances the company's status as one of Russia's leading investment houses with its mixed track record of operating performance over the past years. The ownership structure changed in 2012, and RFHL entered a period of massive business transformation, aimed at reducing its risk appetite and improving efficiency. S&P believes that the company has made significant progress in this area, having maintained its market position and a franchise of about 1,000 international and domestic institutional clients that invest in Russia, as well as a good geographic mix with operations in Russia, Africa, and the Middle East and North Africa. RFHL's funding profile is "moderate" and its liquidity is "adequate," in S&P's view. RFHL's balance sheet is mainly short term, due to the predominance of its dealing and brokerage businesses, which generate significant short-term payables and receivables. It exposes RFHL to refinancing risks when debt markets become less liquid or dry up. S&P incorporates its expectations of the potential support from Russian private investment fund Onexim Holding Ltd. into S&P's assessment of the group's funding and liquidity profiles. S&P expects the liquidity position to remain relatively stable, with no significant redemptions and with continued support from Onexim and emergency support available in case of need. The negative outlook reflects S&P's view that the company's business position and earnings capacity still remain under pressure due to the challenging operating environment and increasing competition in Russia. S&P could consider a downgrade if it sees that the company is not able to sustainably generate positive bottom-line results, or if Onexim is not supporting RFHL. S&P could also consider lowering the rating if, in the next 18 months, there is no progress in balance sheet restructuring. If S&P observed a heightened squeeze on RFHL's liquidity and significant deterioration in S&P's funding and liquidity metrics for the broker, it would consider a negative rating action. S&P would consider revising the outlook to stable if RenCap maintains a lower risk appetite and divests from its large equity holdings, noncore assets (at least partially), and further reduces intragroup loans, which should be positive for the company's capital position, given that earnings generation capacity is gradually improving. =========== B R A Z I L =========== AGERIO: Fitch Cuts LT Local and FC IDRs to 'BB'; Outlook Negative ----------------------------------------------------------------- Fitch Ratings downgraded the long-term Issuer Default Ratings (IDRs) of three state-owned regional banks (Banestes S.A. - Banco do Estado do Espirito Santo [Banestes], Banco de Brasilia S.A. [BRB] and Banco do Estado do Rio Grande do Sul S.A.'s [Banrisul]) and two regional development agencies (Agencia de Fomento do Estado do Rio de Janeiro S.A. - AGERIO [Agerio] and Agencia de Fomento do Estado de Sao Paulo - Desenvolve SP [Desenvolve SP]). The Rating Outlook for all the long-term IDRs remains Negative. At the same time, Fitch has downgraded Banrisul's Viability Rating (VR) and affirmed Banestes and BRB's VRs. Fitch does not assign VRs to development agencies. These rating actions follow the downgrade of Brazil's sovereign rating ('BBB-', Negative Outlook, for additional information see 'Fitch Downgrades Brazil to 'BBB-'; Outlook Negative', dated Oct. 15 2015, at 'www.fitchratings.com') and the subsequent revision of the ratings or the creditworthiness of the Brazilian states that control these issuers (see 'Fitch Downgrades Brazilian States of Sao Paulo, Maranhao and Rio de Janeiro; Outlook Negative', dated Oct. 23 21015, at 'www.fitchratings.com'). A full list of rating actions is at the end of this press release. KEY RATING DRIVERS - IDRs, VRs, DEBT RATINGS, SRs and SRFs Banestes, BRB, Agerio and Desenvolve SP's IDRs reflect the institutional support from their controlling shareholders. In Fitch's opinion, all of these issuers are strategically important for the states that control them. Banestes and BRB carry out transfers to municipalities, and are responsible for the cash management of the state, they also act as tax-collecting agents for their states and have reasonable regional retail franchises. The development agencies, Agerio and Desenvolve SP, act as their controlling states' development arms and implement their economic development policies. Banestes and BRB's IDRs were downgraded to 'BB-' and 'BB' from 'BB' and 'BB+', respectively, and their Outlook remains Negative. These rating actions reflect Fitch's expectation of weaker financial strength of Banestes and BRB's controlling states - Espirito Santo (EES) and the Government of the Federal District (GDF) - over the next 12-24 month period. This expectation follows the recent downgrade of Brazil's sovereign ratings. In Fitch's opinion, the probability of the respective controlling shareholders providing support to these banks, if necessary, is moderate, which results in a Support Rating (SR) of '3'. Banestes' VR was affirmed at 'bb-' and it reflects the bank's regional importance, with adequate liquidity, capitalization and stable deposit source. Banestes relies on low-cost retail funding, provided by its branch network, mainly in EES. It has cautiously pursued higher diversification, issuing Financial Bills (Letras Financeiras) in the local market and increasing its funding in real estate credit bills (LCIs). BRB's VR was affirmed at 'bb-' and it reflects its regional importance and the recent progress in its franchise, with above average profitability, adequate liquidity and a stable deposit source. BRB benefits from a relatively cheap retail funding base. The VR also reflects fierce competition among the major Brazilian banks, which obliges BRB to heavily invest in technology. Banrisul's IDRs are driven by its VR and are also influenced by Fitch's internal assessment of Estado do Rio Grande Sul's (ERS) creditworthiness. Banrisul's VR was downgraded to 'bb' from 'bb+', reflecting the deteriorated operating environment in Brazil. This resulted in the downgrade of its LT IDRs to 'BB' from 'BB+' and also in a one notch downgrade of the bank's subordinated debt to 'B+' from 'BB-', as it is notched down twice from the bank's VR (once for loss severity and once for non-performance). The downgrade of Banrisul's VR reflects Fitch's expectation of deterioration in asset quality and capitalization ratios, as a result of the weakening of ERS' financial profile. A potential deterioration in the bank's asset quality would demand higher loan loss charges, which would negatively affect Banrisul's profitability and its internal capital generation. As other government-owned institutions in Brazil, Fitch contemplates the political influence on Banrisul's ratings. Banrisul has a significant franchise in ERS, with 17% market share in credit and 40% in deposits. Around 15% of the bank's loan portfolio is related to ERS' employees. In addition, Banrisul has a strong performance in regional corporate credits within the ERS. The bank's SR of '4' and Support Rating Floor (SRF) of 'B' reflect the limited possibility of support from the federal government in a stress scenario, due to the relative importance of Banrisul to the system. Agerio's IDRs were downgraded to 'BB' from 'BB+', and their Outlook remains Negative. The rating action mirrors the action on Agerio's parent, the State of Rio de Janeiro (ERio, LT FC and LC IDRs 'BB'/Negative Outlook). AgeRio's ratings are driven by expected support from ERio and equalized to those of its parent. Therefore, the downgrade of the ratings reflects ERio's reduced capacity to support AgeRio. AgeRio's SR was affirmed at '3', indicating moderate probability of support from its shareholder, in case of need. Desenvolve SP's IDR were downgraded to 'BBB-' from 'BBB' and the Negative Outlook was maintained, following the same rating action on its parent, the State of Sao Paulo (ESP, LT FC and LC IDRs 'BBB-'/Negative Outlook). Desenvolve SP's ratings are driven by expected support from ESP and equalized to those of its parent. Its SR was affirmed at '2' indicating high probability of support from its shareholder, in case of need. RATING SENSITIVITIES IDRS, VRs, SRs and SRFs Banestes and BRB's IDRs are highly influenced by Fitch's internal analysis of the shareholders of these banks, EES and GDF, respectively. As such, their ratings would be affected by any change in these states' financial strength and/or in their willingness to provide support to these subsidiaries. Banestes' VR is sensitive to a change in Fitch's assumptions regarding exposure to regional risk, capitalization and credit quality. The VR could be downgraded if Banestes' credits past due over 90 days rise above 6% and/or Fitch Core Capital (FCC) ratio falls below 10%. BRB's VR could be downgraded in case of significant deterioration in the bank's asset quality that reduced FCC ratio to less than 10%. Although unlikely in the short term, the VR could be upgraded if BRB is able to maintain credit quality at its current levels and further reinforce its capital base. Banrisul's ratings could be downgraded in case of further deterioration of asset quality ratios, with increase in credits past due over 90 days above 5%, should the coverage for impaired loans deteriorate, or if the FCC ratio falls to less than 12%. Furthermore, Banrisul's ratings could be affected by a change in Fitch's opinion on ERS' creditworthiness, given the bank's significant presence in the state. In addition, further pressures on the state finances that may result on arrears on Banrisul's payroll lending portfolio could result in additional negative pressures on Banrisul's VR. AgeRio's ratings are aligned with those of ERio. Therefore, any further changes in ERio's ratings or Rating Outlooks, or willingness to provide support to AgeRio, or in Fitch's evaluation of AgeRio's strategic importance to its parent, would result in changes in AgeRio's ratings. Likewise, Desenvolve SP's ratings are aligned with those of ESP, and any changes in the latter's ratings or in its capacity or willingness to support Desenvolve SP would lead to a rating review. Fitch has taken the following rating actions: AgeRio -- Long-term local and foreign currency IDRs downgraded to 'BB' from 'BB+', Outlook Negative; -- Short-term local and foreign currency IDRs affirmed at 'B'; -- Support Rating affirmed at '3'. Banestes -- Long-term local and foreign currency IDRs downgraded to 'BB-' from 'BB', Outlook Negative; -- Short-term local and foreign currency IDRs affirmed at 'B'; -- Support Rating affirmed at '3'; -- Viability Rating affirmed at 'bb-'. Banrisul -- Long-term local and foreign currency IDRs downgraded to 'BB' from 'BB+', Outlook Negative; -- Short-term local and foreign currency IDRs affirmed at 'B'; -- Viability Rating downgraded to 'bb' from 'bb+'; -- Support Rating affirmed at '4'; -- Support Rating Floor affirmed at 'B'; -- Subordinated notes due in February 2022, downgraded to 'B+' from 'BB-'. BRB -- Long-term local and foreign currency IDRs downgraded to 'BB' from 'BB+', Outlook Negative; -- Short-term local and foreign currency IDRs affirmed at 'B'; -- Support Rating affirmed at '3'; -- Viability Rating affirmed at 'bb-'. Desenvolve SP: -- Long-term local and foreign currency IDRs downgraded to 'BBB-' from 'BBB'; Outlook Negative; -- Short-term local and foreign currency IDRs downgraded to 'F3' from'F2'; -- Support Rating affirmed at '2'. COMPANHIA SIDERURGICA: S&P Lowers Rating to 'BB-'; Outlook Neg. --------------------------------------------------------------- Standard & Poor's Ratings Services has lowered its global scale ratings on Companhia Siderurgica Nacional (CSN) to 'BB-' from 'BB' and its national scale ratings to 'brA-' from 'brA+'. At the same time, S&P has lowered its issue-level rating to 'BB-' from 'BB' on the company's senior unsecured debt. The outlook on the corporate credit ratings is negative. The recovery ratings on the company's debt remain unchanged at '4', reflecting expectations of average recovery of 30%-50% (the higher end of the range) despite higher debt levels due to currency devaluation. The downgrade reflects the challenging domestic steel market that acts as a drag on CSN because demand continues to weaken and depreciation of Brazilian real is pushing up the company's debt. About 45% of CSN's total debt is denominated in foreign currency. In addition, although S&P expects some asset sales to lower the company's debt and interest burden, Brazil's weak economy increases uncertainties about when will these happen. As a result, and amid the likely lower global iron ore prices, CSN's credit metrics should continue to weaken for the next few quarters and won't improve significantly at least until 2017. Due to CSN's efforts to diversify its revenues sources by increasing export of steel, it generates about 40% of its total steel revenues from abroad. On the positive side, iron ore prices have held fairly stable in recent months, allowing CSN to benefit from its low-cost and high-grade iron ore mine at Casa de Pedra amid the sliding Brazilian real to generate stronger margins in that business. Nonetheless, S&P believes this will only mitigate the risks of the weakening domestic steel market, where prices remain pressured due to decreasing volumes. This should continue limiting the steel industry's ability to increase prices in the domestic markets. Under such scenario, S&P expects CSN's consolidated EBITDA margins to drop to about 23% by the end of 2015 and close to 20% in 2016. Brazil's weaker currency will have most significant impact on CSN's financial metrics because its total debt should rise by about R$5.8 billion, considering an exchange rate of R$4 per $1 by the end of 2015. As a result, S&P expects financial metrics to remain "highly leveraged" through the next two years. Furthermore, in S&P's base-case scenario, it don't expect the company generate meaningful non-recurrent cash flow, such as asset sales, in 2015 given current market conditions. CSN's liquidity is "strong." Despite weak cash generation, CSN's cash position remains high partly thanks to the positive effects of weaker currency on the company's dollar-denominated cash position. Furthermore, CSN has refinanced about R$5 billion of debt that was coming due in the next two years, significantly reducing cash flow pressures for the next 24 months. In addition, S&P don't expect the company to have dividend distribution in 2016, and it also doesn't face pressure from covenants. COSAN LTD: S&P Affirms 'BB' Rating; Outlook Remains Stable ---------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB' ratings on Cosan Ltd. (CZZ) and its subsidiary, Cosan S.A. Industria e Comercio(Cosan S.A.). The outlook on both companies remains stable. The rating on CZZ reflects its solid business position and resilient cash flow generation that allows the company to maintain an "adequate" liquidity even amid its significant investment plan and a more leveraged financial profile. The ratings also incorporates CZZ's successful integration of America Latina Log¡stica S.A. (ALL) and S&P's expectations that the company will execute its growth strategy while keeping a financial risk profile in line with S&P's "aggressive" category, but also strengthening its market position and diversifying its cargo volumes. Cosan Logistica--the new entity following the merger of ALL and Rumo--will require heavy investment that would depend on successufull financing activities. However, its operations have already started to slightly improve through its "Operacoes Norte" and "Operacoes Sul" units, indicating that it would be able to strengthen cash flow generation as expected during its 18-month investment plan. "Although we understand that Cosan S.A. has a less leveraged financial profile than CZZ's, as seen in its stand-alone credit profile (SACP) of 'bb+', its ratings mirror those on CZZ. The latter fully controls Cosan S.A., which generates about 50% of the group's EBITDA. We deem Cosan S.A. as highly unlikely to be sold, with integral links to the group's reputation and name. Cosan S.A. was the group's only subsidiary until the spinoff of the logistics arm, Rumo, which merged with ALL. The spinoff aimed to better segregate business strategy between Cosan S.A.'s operations (gas distribution, lubricants, and the stake in Raizen and Cosan Logistica) preferred shares that Cosan Investimentos e Participacoes S.A. (Cosan S.A.'s subsidiary) issued in June 2014. Although we consider the equity-like characteristics of this issuance in our analysis, the preferred shareholders have a put option against Cosan S.A., which they could exercise until April 30, 2021. This option would require Cosan S.A. to pay the R$2 billion in principal linked to Certificado de Deposito Interbancario. Therefore, we view this instrument as more debt- like, than equity-like. However, the company used the proceeds to pay down more expensive debt at the holding level, improving its capital structure and reducing interest payments," S&P noted. Under S&P's base-case scenario, it expects CZZ to post higher leverage metrics during the next two years as a result of Cosan Logistica's investment plan. S&P's main assumptions include: -- Brazil's GDP contraction of at least 2.5% in 2015 and 0.5% in 2016. -- Brazil's inflation rates of about 8.7% in 2015 and 7.9% in 2016. -- Cosan Logistica to increase revenues by 2% in 2015 and 14% in 2016, reflecting its strategy of raising efficiency of its merged assets and reducing costs by lower idle time and fuel burn. -- Cosan Logistica's total capex of R$1.7 billion in 2015 and R$2.7 billion in 2016. Debt-financed expansion capex of about R$1 billion in 2015 and R$2 billion in 2016. -- Cosan Logistica's EBITDA of about R$1.8 billion in 2015 and R$2.1 billion in 2016. -- Comgas' volumes to decline amid lower industrial activity, which the higher gas tariffs -- due to inflation--would partly compensate. Comgas' EBITDA is likely to be about R$1.4 billion. -- Annual dividends from Raizen of about R$750 million in 2015 and 2016. -- The group's subsidiary, Radar, to generate R$100 million- R$150 million in EBITDA. -- Stable margins for Cosan Combustiveis e Lubrificantes S.A., a lubricant distributor, which should contribute R$110 million - R$140 million in annual EBITDA for the next two years. -- No new acquisition following the merger with ALL. Under these assumptions, S&P arrives at these credit metrics. Cosan S.A.'s metrics are stronger than CZZ's, given ALL's more leveraged profile: -- CZZ's consolidated EBITDA margin of 32%-34% in 2015 and 33%- 36% in 2016, and Cosan S.A.'s 26%-28% in 2015 and 25%-27% in 2016. -- CZZ's net debt to EBITDA of 4.5x-5.0x in 2015 and 2016, and Cosan S.A.'s 3.7x -4.2x in the same period. -- CZZ's funds from operations (FFO) to net debt of 10%-15% in 2015 and 2016, and Cosan S.A.'s 14%-18% in the next two years. "We assess the group's liquidity as "adequate." After merger with ALL, the group's consolidated figures weakened because the acquired company had about R$900 million in debt due 2015 and R$700 million in 2016. The group's good access to banks and capital markets has enabled it to improve its capital structure and continue refinancing debt maturities, as seen in Rumo's recent R$1.4 billion debenture issuance. After the merger, CZZ successfully renegotiated ALL's debt to allow for change of control and looser financial covenants, which now reflects a 5.5x threshold for net debt to EBITDA at Cosan Logistica. Cosan S.A. also has a cushion under its covenant agreements, which includes the consolidation of 50% of Raizen's numbers," S&P said. According to S&P's estimates, sources will exceed uses on a consolidated basis by 1.2x during 2015 and even if EBITDA drops by 15% on both companies. Most of its cash is at its subsidiaries' level, mainly at Comgas and Cosan Logistica, which have significant capex. S&P's base-case scenario assumes that Cosan S.A. will continue to refinance its debt. Principal consolidated liquidity sources for CZZ: -- Cash on hand of R$3.2 billion as of June 2015 -- Estimated FFO of R$2.0 billion-R$2.7 billion in 2015 and 2016 -- Undrawn committed credit facility of R$750 million and tenor of three years Principal consolidated liquidity uses for CZZ: -- Short-term debt maturities of about R$2.3 billion -- Maintenance capex of about R$1.0 billion -- Annual dividend payout of R$400 million-R$500 million Principal consolidated liquidity sources of Cosan S.A.: -- Cash on hand of R$2.2 billion as of June 2015 -- Estimated FFO of R$1.0 billion-R$1.5 billion in 2015 and 2016 -- Undrawn committed credit facility of R$750 million and tenor of three Principal Consolidated Liquidity Uses of Cosan S.A.: -- Short-term debt maturities of about R$1.1 billion -- Maintenance capex of about R$700 million -- Dividend payout of R$500 million-R$700 million annually The stable outlook reflects S&P's expectation that Cosan Logisticas' operating efficiency and cash flow will rise as it execute its 18-month investment, while CZZ maintains its sound financing capability and "adequate" liquidity. Although CZZ's credit metrics will remain pressured given the sizable investment plan, S&P believes its ability to adjust capex partly mitigates the risk of fast growth, while the capacity expands as demand increases. The outlook on Cosan S.A. will move in tandem with that on CZZ. A downgrade is possible if CZZ's credit metrics weaken further following lower-than-expected cash flow improvements at Cosan Logistica. A downgrade could also follow an unexpected M&A activity that weakens CZZ's liquidity and net debt to EBITDA to more than 5.0x and FFO to net debt to less than 12% on a consistently basis. Given CZZ's exposure to the integration and capex execution risks, S&P believes an upgrade is currently unlikely. However, an upgrade could occur if the group is able to post a lighter balance balance with debt to EBITDA sustainability below 4.0x and FFO to debt above 20%. OI SA: Possible Merger with TIM No Immediate Impact on Ba3 Rating ----------------------------------------------------------------- Oi S.A. ("Oi", Ba3 negative) announced that it received a proposal to enter into exclusive negotiations with the investment group Letter One (unrated) for a potential transaction involving up to USD 4.0 billion in capital injection from Letter One into Oi, subject to the business combination of Oi and TIM Participacoes S.A. ("TIM" unrated), the Brazilian subsidiary of Telecom Italia S.p.A. (Ba1 negative). The possibility of a capital injection and the merger between Oi and TIM are credit positives for Oi's bondholders and creditors in general, although with no immediate impact on Oi's ratings or outlook as the deal is unlikely to materialize in the near term. TIM has a stronger balance sheet than Oi, and a merger would offer synergies, especially in cost savings and capital spending plans, as well as a larger scale to help compete with the stronger players Telefonica S.A.'s (Baa2 stable) Vivo and America Movil S.A.B. de C.V.'s (A2 stable) Claro subsidiaries in Brazil. ========================== C A Y M A N I S L A N D S ========================== ACS CONSUMER: Placed Under Voluntary Wind-Up -------------------------------------------- On Sept. 28, 2015, the sole shareholder of ACS Consumer Debt Fund SPC Segregated Portfolio A 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: Fides Limited c/o Dwight Dube Telephone (345) 949 7232 The Grand Pavilion, 2nd Floor Commercial Centre P.O. Box 10338 Grand Cayman Cayman Islands KY1-1003 AES PANAMA: Commences Liquidation Proceedings --------------------------------------------- On Sept. 29, 2015, the shareholders of AES Panama Holding, Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: James Kostura c/o Maples and Calder, Attorneys-at-law Ugland House P.O. Box 309 Grand Cayman KY1-1104 Cayman Islands CQS EUROPEAN: Creditors' Proofs of Debt Due Oct. 30 --------------------------------------------------- The creditors of CQS European Equity Long Short Feeder Fund Limited are required to file their proofs of debt by Oct. 30, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 25, 2015. The company's liquidator is: CDL Company Ltd. 89 Nexus Way, Camana Bay P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands EDMOND DE ROTHSCHILD: Creditors' Proofs of Debt Due Nov. 3 ---------------------------------------------------------- The creditors of Edmond De Rothschild SPC are required to file their proofs of debt by Nov. 3, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 25, 2015. The company's liquidator is: Appleby Trust (Cayman) Ltd. c/o Richard Gordon Telephone: +1 (345) 949 4900 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands LEGATO CAPITAL: Creditors' Proofs of Debt Due Nov. 2 ---------------------------------------------------- The creditors of Legato Capital Limited are required to file their proofs of debt by Nov. 2, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 25, 2015. The company's liquidator is: Richard Fear c/o Ryan Charles P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands Telephone: (345) 814 7364 Facsimile: (345) 945 3902 NORTHERN ENERGY: Creditors' Proofs of Debt Due Nov. 3 ----------------------------------------------------- The creditors of Northern Energy Exploration Ltd. are required to file their proofs of debt by Nov. 3, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 15, 2015. The company's liquidator is: Appleby Trust (Cayman) Ltd. c/o Richard Gordon Telephone: +1 (345) 949 4900 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands JAT CAPITAL: Creditors' Proofs of Debt Due Oct. 30 -------------------------------------------------- The creditors of JAT Capital Intermediate Fund, Ltd. are required to file their proofs of debt by Oct. 30, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 30, 2015. The company's liquidator is: CDL Company Ltd. 89 Nexus Way, Camana Bay P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands JAT CAPITAL MASTER: Creditors' Proofs of Debt Due Oct. 30 --------------------------------------------------------- The creditors of JAT Capital Master Fund, Ltd. are required to file their proofs of debt by Oct. 30, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 30, 2015. The company's liquidator is: CDL Company Ltd. 89 Nexus Way, Camana Bay P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands JAT CAPITAL OFFSHORE: Creditors' Proofs of Debt Due Oct. 30 ----------------------------------------------------------- The creditors of JAT Capital Offshore Fund, Ltd. are required to file their proofs of debt by Oct. 30, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 30, 2015. The company's liquidator is: CDL Company Ltd. 89 Nexus Way, Camana Bay P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands JAT SELECT: Creditors' Proofs of Debt Due Oct. 30 ------------------------------------------------- The creditors of JAT Select Fund, Ltd. are required to file their proofs of debt by Oct. 30, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 30, 2015. The company's liquidator is: CDL Company Ltd. 89 Nexus Way, Camana Bay P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands JAT SELECT INTERMEDIATE: Creditors' Proofs of Debt Due Oct. 30 -------------------------------------------------------------- The creditors of JAT Select Intermediate Fund, Ltd. are required to file their proofs of debt by Oct. 30, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 30, 2015. The company's liquidator is: CDL Company Ltd. 89 Nexus Way, Camana Bay P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands JAT SELECT MASTER: Creditors' Proofs of Debt Due Oct. 30 -------------------------------------------------------- The creditors of JAT Select Master Fund, Ltd. are required to file their proofs of debt by Oct. 30, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 30, 2015. The company's liquidator is: CDL Company Ltd. 89 Nexus Way, Camana Bay P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands WHITETIP INVESTMENT: Placed Under Voluntary Wind-Up --------------------------------------------------- On Sept. 23, 2015, the sole shareholder of Whitetip Investment Company 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: Fides Limited c/o Dwight Dube Telephone (345) 949 7232 The Grand Pavilion, 2nd Floor Commercial Centre P.O. Box 10338 Grand Cayman Cayman Islands KY1-1003 ============= E C U A D O R ============= ECUADOR: Fiscal Position of NFPS Down to a Deficit of 3.5% of GDP ----------------------------------------------------------------- The Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Ecuador. Supported by positive terms of trade and large public investments, growth averaged 4.5 percent over the past decade, while social indicators improved. Reflecting Ecuador's goals of diversifying energy production and improving infrastructure and social equality, the overall fiscal position of the non-financial public sector (NFPS) deteriorated from balance in 2011 to a deficit of 3.5 percent of GDP in 2012-14, mainly driven by high capital spending. The poverty rate and the GINI coefficient fell, respectively, from 38 percent and 0.54 in 2006 to 22.5 percent and 0.47 in 2014, while the unemployment rate declined significantly. Financial stability was preserved, supported by dollarization. In 2014, growth moderated to 3.8 percent in line with developments in the region. Since the fourth quarter of 2014, the economy has been hit by external shocks and is slowing down. The sharp decline in the international oil price, by about half for the Ecuadorian mix, significantly undercut oil revenues. In addition, competitiveness is being eroded by the real appreciation of the exchange rate-by 16 percent year-over-year through June 2015. The authorities responded rapidly to the shocks by cutting public spending, introducing balance of payment safeguards, and containing minimum wage growth. As a result, non-oil imports have been declining significantly from April 2015, and the 2015 fiscal deficit is expected to be contained to the original budget target. Nonetheless gross financing needs remain large, and international access to credit has tightened. In the face of the economic slowdown, bank liquidity conditions have tightened, credit growth has slowed, and non-performing loans have risen (albeit from a low level). Despite the slowdown, inflation is picking up, reflecting changes in transport tariffs as well as in food prices and utilities. Due to the shocks and expected adjustment, the economy is projected to contract somewhat in 2015, while the external position deteriorates. Growth prospects are also revised down going forward, due to the need to restore competitiveness, and in light of the effect of lower oil prices on investment and production. Risks to the outlook relate mainly to availability of external financing, additional softness in oil prices, persistent dollar appreciation, potential domestic financial system pressure, and natural disasters. Executive Board Assessment Executive Directors welcomed the resumption of successful on-site Article IV consultation discussions with Ecuador, and looked forward to enhanced collaboration. They commended the impressive results in economic and social indicators over the past decade. They noted, however, that as an economy that is heavily dependent on oil revenues and is fully dollarized, Ecuador has recently been hit by sharply declining commodity prices and real exchange rate appreciation. The outlook is further clouded by a possible tightening of external financing conditions and the country's exposure to natural disasters. Directors welcomed the authorities' response to these shocks so far and encouraged further efforts to build policy buffers, preserve financial stability, and strengthen competitiveness. Directors commended the authorities for their significant adjustment efforts to contain the fiscal deficit, and encouraged them to develop a contingency plan ensuring that any shortfalls in financing are addressed through further cuts in non-priority expenditure, while avoiding short-term financing from the central bank. They also called for the removal of distortionary import surcharges as soon as possible and within the announced timeframe. Directors stressed the importance of rebuilding fiscal buffers over time and recommended the authorities to sustain efforts to rationalize expenditure, contain public sector wage growth, continue the plan to overhaul fuel subsidies while protecting the poor, improve tax collection, and continue the reform process of the pension system. Directors agreed that near-term challenges will also center on securing adequate liquidity in the financial sector, and improving regulation and supervision. While financial stability indicators do not show signs of stress, possible lags in responses and the continuing economic slowdown warrant close monitoring. Directors encouraged the authorities to improve the clarity of regulations, strengthen crisis management and supervision, and verify the resolution framework with a view to maintaining confidence and ensuring a rapid response to shocks. If pressures persist, relaxing banks' reserve requirements should be considered. Regulatory restrictions on bank activities-especially interest rate caps, penalties on investing abroad, and domestic liquidity requirements-should be progressively lifted, credibility in the system of electronic money should be ensured, and directed lending should be discontinued. Directors also encouraged the authorities to strengthen the AML/CFT framework, and undertake a new financial sector assessment (FSAP) in light of significant changes to the financial landscape since the last assessment. Directors underscored that improving competitiveness is key to safeguard the external balance and sustain medium-term growth. They welcomed reforms and investment in infrastructure, education, and private sector development, but also stressed the importance of efforts to contain wage growth and address labor market rigidities. More broadly, Directors supported reforms aimed at improving productivity, crowding-in the private sector, attracting foreign direct investment, diversifying the economy, and promoting trade integration. ECUADOR: Focuses on Mining Investments to Boost Economy ------------------------------------------------------- EFE News reports that Ecuador has identified the mining industry as one of the engines of economic growth over the next few years, with projects worth about $3.1 billion planned in the sector over the next three years, Strategic Sectors Minister Rafael Poveda said. Five large projects are in various stages of development, showing "the world" that Ecuador "offers all the conditions to be a player in the mining industry on a large scale at the global level," Minister Poveda said, according to EFE News. Officials estimate that when the projects are all operating in about five years, Ecuador's mining exports will total about $4 billion annually and the government will receive $400 million in revenues yearly, Minister Poveda said in a press conference with foreign media, the report relays. Empresa Nacional Minera, meanwhile, is developing eight other projects to produce copper, gold and other metals, the report notes. The projects are currently in the exploration phase and private foreign investment will be needed to develop them, the minister said, the report adds. ================= G U A T E M A L A ================= COMCEL TRUST: Moody's Puts Ba1 CFR on Review for Downgrade ------------------------------------------------------------ Moody's Investors Service has placed on review for downgrade Millicom International Cellular S.A.'s Ba1 corporate family rating and the Ba2 ratings on its senior unsecured notes. At the same time, Moody's placed under review for downgrade the Ba1 ratings of the subsidiary Comcel Trust (Comcel). On Review for Downgrade: Issuer: Comcel Trust Corporate Family Rating, Placed on Review for Downgrade, currently Ba1 Senior Unsecured Regular Bond/Debenture, Placed on Review for Downgrade, currently Ba1 Issuer: Millicom International Cellular S.A. Probability of Default Rating, Placed on Review for Downgrade, currently Ba1-PD Corporate Family Rating, Placed on Review for Downgrade, currently Ba1 Senior Unsecured Regular Bond/Debentures, Placed on Review for Downgrade, currently Ba2 Outlook Actions: Issuer: Comcel Trust Outlook, Changed To Rating Under Review From Stable Issuer: Millicom International Cellular S.A. Outlook, Changed To Rating Under Review From Stable RATINGS RATIONALE Moody's has placed Millicom's and Comcel's ratings on review for downgrade following Millicom's material fact on October 21, 2015 stating that it has reported to law enforcement authorities in the United States and Sweden potential improper payments made on behalf of its joint venture in Guatemala. Millicom also disclosed that it has hired an international law firm, Covington & Burling LLP, to conduct independent investigations on the matter, with the support of Millicom's management team. At this time, there is very little additional information made available by the companies and, therefore, it is difficult to estimate the timing and the legal outcome of the investigation, or the size of potential monetary penalties. Accordingly, the review will be centered in gathering more information about the disclosed potential improper payments and overall investigation, as well as analyzing potential economic impacts for the companies and estimating the potential respective negative impacts for their credit metrics and liquidity. Currently, both Comcel and Millicom have enough liquidity to cover their short term obligations, but cushion for the coverage of fines would depend on the underlying amounts involved. Moody's consider, however, that potential penalties could be lowered by Millicom's decision of voluntarily self-reporting its findings. In addition to monetary penalties, Moody's also sees increased reputational risk for both companies, which could impact investors sentiment and limit their access to funding. Moreover, Moody's review will also assess whether current operating licenses and/or spectrum rights would be impacted. If the resolution of the investigation considers that allegations are true, there could be a spillover effect over its well-regarded Tigo brand, which is used by the group across the LATAM region. Additionally, Moody's could expect regulatory scrutiny to increase towards both companies. To the extent that Moody's considers that potential economic penalties could be substantial with significant impact in credit metrics and in Comcel's ability to upstream dividends, a multiple notch downgrade could be considered according to the estimated impact under our scenarios analysis. On the other hand, if matters are clarified and resolved with limited or manageable implications to the companies' domestic and international businesses and to their liquidity profile, the ratings could be stabilized. The principal methodology used in these ratings was Global Telecommunications Industry published in December 2010. Millicom is a global telecommunications investor focused on emerging markets with cellular operations and licenses in 12 countries in Latin America and Africa. The company has over 56 million subscribers and derives around 85% of revenues from its Central and South America operations in El Salvador, Guatemala, Honduras, Colombia, Bolivia and Paraguay. In Africa, Millicom operates in Chad, Tanzania, Democratic Republic of Congo, Rwanda, Senegal, and Ghana. The company also offers cable and satellite TV services in Central and South America. During the last twelve months ended Dec. 31, to Sept. 30, 2015, revenues reached USD6,386 914 million. Millicom is incorporated in Luxembourg and publicly listed on the Stockholm Stock Exchange. Comcel is Guatemala's leading telecommunications provider. In addition to mobile services, the company offers cable television, fixed broadband and triple play data and voice services to homes and corporate solutions to businesses. Operating under the Tigo brand, Comcel reaches over 8 million subscribers, representing around 50% market share through a network covering 88% of the country's population. During the last twelve months as of June 2015, the company's revenues and adjusted EBITDA reached USD1.3 billion and USD692 million, respectively. ============= J A M A I C A ============= CARIBBEAN BROILERS: "No Real Cause for Concern," Says Manager ------------------------------------------------------------- RJR News reports that Caribbean Broilers is again downplaying concerns about the risk of cancer from eating processed meat. Dr. Keith Amiel, Corporate Affairs Manager at Caribbean Broilers, responding to another adverse international report on the issue, told RJR News that his company has done the relevant tests on its products. "We test every batch of processed pork and sausages that we do . . . to ensure that they are below these recommended levels," the report quoted Dr. Amiel as saying. Asserting that "there is no real cause for concern," Dr. Amiel said the recommended levels were set by the World Health Organization (WHO), the report relays. The WHO said eating processed meat, such as sausages and ham, causes cancer, while unprocessed red meat may also be carcinogenic, the report notes. A group of 22 scientists from the WHO's International Agency for Research on Cancer in Lyon, France, evaluated more than 800 studies from several continents about meat and cancer, the report notes. The studies looked at more than a dozen types of cancer in populations with diverse diets over the past 20 years. Based on that evaluation, the IARC classified processed meat as "carcinogenic to humans," noting links in particular to colon cancer, the report says. It said red meat contains some important nutrients, but still labeled it "probably carcinogenic," with links to colon, prostate and pancreatic cancers, the report adds. The agency said it did not have enough data to define how much processed meat is too dangerous, but said the risk grows with the amount consumed, the report notes. Analysis of 10 of the studies suggested that a 50-gram portion of processed meat daily -- or about 1.75 ounces-increases the risk of colorectal cancer over a lifetime by about 18 per cent, the report relays. =========== P A N A M A =========== PANAMA CANAL: S&P Raises CCR to 'BB-'; Outlook Stable ----------------------------------------------------- Standard & Poor's Ratings Services said it raised its corporate credit and issue-level ratings on Panama Canal Railway Co. to 'BB-' from 'B+'. The outlook is stable. The upgrade reflects PCRC's stable metrics during the past few years and S&P's expectation that they will remain so as a result of solid demand for the use of the canal's railway, which has resulted in the company's adequate transported cargo volumes. In addition, S&P's expectation of steady cash flow generation is supported by a recently signed three-year contract with Maersk, the world's largest vessel operator, allowing for tariff increases if PCRC's 5% annual volume growth is not met. The stable outlook reflects S&P's expectation of PCRC's steady cash flow generation thanks to a recently signed contract with Maersk, which allows for greater revenue visibility. In this sense, S&P believes the company will continue to cover its financial obligations and operational requirements while maintaining its debt to EBITDA near 2.0x and FFO to debt above 40% for the next few years. S&P could lower the ratings on PCRC if it posts lower-than- expected volume targets, coupled with lower tariffs, as a result of potential pressures. Such a scenario could develop from the expansion of the canal, which would weaken the company's operating and leverage metrics, resulting in an average EBITDA margin consistently below 60% and an average debt to EBITDA consistently above 2.0x. An upgrade is unlikely due to PCRC's limited scale of operations, increased customer concentration, and the inherent risks of operating a single-track rail system. Moreover, the company's expansion projects are limited to the handling capacity of the ports in the canal and subject to economic activity. However, S&P could consider raising its ratings if the company posts greater cash flow stability, reducing its debt to EBITDA below 1.0x. =============================== T R I N I D A D & T O B A G O =============================== TRINIDAD & TOBAGO: Government Plans, Encouraging ------------------------------------------------ Verne Burnett at Trinidad and Tobago Newsday reports that chairman of the Trinidad and Tobago Stock Exchange (TTSE) Peter Clarke said the exchange was "particularly encouraged" by the statement by Finance Minister Colm Imbert that the Government intended to fill some of its budget gaps by a sale of assets program among other things and said he hoped the minister would use the stock exchange to put some profitable State companies on the market to allow individuals and institutional investors to participate in the ownership of more State companies in the months and years ahead. Mr. Clarke said he would like to visit the minister and brief him about the facilities available at the exchange and assure him that the exchange was ready to facilitate and assist in whatever divestment plans the ministry may have, Trinidad and Tobago Newsday notes. Mr. Clarke made the comment as he welcomed the listing of 75,852,000 Class B shares in TTNGL, which were sold in an Initial Public Offering (IPO) between August 10 and September 9, 2015, the report notes. In a brief ceremony at the exchange to mark the formal listing of the shares, Mr. Clarke said that with the listing of the new shares, the "TTSE Index now includes a company which offers full exposure to the energy sector, something that is indeed necessary if investors are to view the index as representative of the performance of the Trinidad and Tobago economy," the report relays. Mr. Clarke said the energy sector is the major driver of the economy and over the past five years had contributed 43 percent to the country's Gross Domestic Product. "This listing provides an opportunity for all categories of investors to be part owners of a key contributor to our nation's economy," Mr. Clarke said, adding that the total market capitalization of the stock exchange was $112.39 billion as of October 23, 2015, notes the report. The report discloses that Mr. Clarke said when investors look at the various options available to them, where interest rates are so low and equities offer the potential for both capital appreciation and dividends. Mr. Clarke observed that in most cases dividends offer higher rates than one could earn on fixed income instruments, the report relays. "So we are encouraged." "I think the key is to have attractive companies, new companies like Phoenix Park that people can participate in and diversify their portfolios with," the report quoted Mr. Clarke as saying. "Generally IPOs and in particular, those that add diversification to the market, generate greater market activity. The exchange plays an essential role in the development of the local capital market and aims to foster and facilitate greater market activity leading to better liquidity and transparency." In the midst of falling oil prices, the listing of NGL has stimulated market activity as seen in its first week of trading, with a total trade volume of 8.8 million shares and a trade value of $218.5 million, the report relays. Mr. Clarke said this was about ten times greater than the activity of the last major listing, First Citizens Bank Limited during its first week of trading, the report adds. ================= X X X X X X X X X ================= * Global Metal Prices will Remain Weak Through 2016, Moody's Says ----------------------------------------------------------------- Slowing growth in China and Brazil, muted conditions in Europe and a weak recovery in the US will continue to pressure global base metal prices, says Moody's Investors Service. Moody's outlook for the global base metals industry remains negative. Uncertainty regarding growth in China is one of the primary factors underpinning Moody's negative outlook, with the country accounting for more than 40% of global demand for most key base metals, according to the report "2016 Global Base Metals Outlook: Downside Risk Remains on China Concerns, Slowing Global Growth." Weak global macroeconomic conditions and volatility in base metal prices have also dampened investor sentiment, which could pressure future growth rates. "We expect base metal prices to continue to trade at lower levels, and expectations for slower growth and reduced demand could result in further downside risk for the sector," said Carol Cowan, a Moody's Senior Vice President. Moody's notes that steeper price declines will flow through to companies' earnings in 2015, resulting in a material decline in cash flow for many producers. Companies have reduced controllable costs such as capital expenditure and exploration expenses to boost liquidity, but such actions could pressure their credit profiles over the medium term if producers need to develop projects in a more costly or politically difficult climate. *********** 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 * * *