/raid1/www/Hosts/bankrupt/TCRLA_Public/151211.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
Friday, December 11, 2015, Vol. 16, No. 245
Headlines
A R G E N T I N A
ARGENTINA: New Gov't. Plans to Negotiate With Holdout Hedge Funds
MASTELLONE HERMANOS: Fitch Affirms 'CCC' Issuer Default Ratings
B R A Z I L
BRAZIL: Raises $112.9 Million in Port Terminal Auction
BR PROPERTIES: S&P Lowers Global Scale Rating to 'BB-'
PETROLEO BRASILEIRO: Moody's Cuts Sr. Unsecured Debt Rating to Ba3
C A Y M A N I S L A N D S
ALPINE CAPITAL: Court Enters Wind-Up Order
AMAHARDWOODS LIMITED: Commences Liquidation Proceedings
BULLION LTD: Commences Liquidation Proceedings
CFIP ULTRA: Commences Liquidation Proceedings
HARBOR BRIDGE: Commences Liquidation Proceedings
HM MVS: Placed Under Voluntary Wind-Up
NOLA LTD: Placed Under Voluntary Wind-Up
PRIME BUSH: Commences Liquidation Proceedings
RUSSIAN STEPPES: Commences Liquidation Proceedings
SANITAS GLOBAL: Placed Under Voluntary Wind-Up
SURREY LTD: Placed Under Voluntary Wind-Up
TRACTMANAGER KSA: Placed Under Voluntary Wind-Up
UNIVERSAL BROKERAGE: Commences Liquidation Proceedings
D O M I N I C A N R E P U B L I C
DOMINICAN REP: Head Discloses Big Plans, but Still Skirts Press
DOMINICAN REP: Deputies OK US$244.3MM bond to Boost 2016 Budget
E L S A L V A D O R
AES EL SALVADOR: Moody's Affirms Ba2 Corporate Family Rating
J A M A I C A
JAMAICA: World Bank Says Country Needs Stronger Growth
M E X I C O
ABENGOA MEXICO: Moody's Cuts Issuer Rating to C; No Outlook
CORPOVAEL: Moody's to Retain B1 CFR on Initial Public Offering
MINERA FRISCO: Moody's Lowers CFR to B2; Outlook Negative
VINTE VIVIENDAS: Moody's Affirms B1 CFR & Changes Outlook to Pos.
P U E R T O R I C O
COCO BEACH: IPFS Seeks to Terminate Insurance Premium Finance Deal
COCO BEACH: Wants Pre-Transfer Date Liens on Golf Club Cancelled
S U R I N A M E
SURINAME: Will Continue Education Reforms With $20MM-IDB Support
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A R G E N T I N A
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ARGENTINA: New Gov't. Plans to Negotiate With Holdout Hedge Funds
-----------------------------------------------------------------
EFE News reports that the court-appointed mediator in a long-
running debt dispute pitting Argentina against holdout hedge funds
said that President-elect Mauricio Macri's incoming administration
intended to negotiate a settlement.
Attorney Daniel Pollack, appointed by U.S. District Judge in
Manhattan, Thomas Griesa, said in a statement that he had met
"earlier this week" at his office in New York with Argentina's
incoming finance secretary, Luis Caputo, who had requested the
meeting, according to EFE News.
"Mr. Caputo expressed to Mr. Pollack the intention of the new
administration to commence such negotiations promptly after they
are sworn into office on Thursday, December 10," the mediator's
office said in a statement obtained by EFE News.
The report notes that no date has been set for the negotiations,
according to Pollack, who confirmed that he also met last week
with representatives of hedge funds that "hold approximately $10
billion of judgments against Argentina."
Elliott Management Corp. founder and CEO Paul Singer's NML Capital
Ltd. and other hedge funds that acquired Argentine bonds on the
secondary market at large discounts following Buenos Aires'
massive 2001 debt default -- and refused to take part in debt
restructurings in 2005 and 2010 accepted by 93 percent of
creditors -- won a judgment in Judge Griesa's court in 2012, the
report recalls.
The report relays that Judge Griesa, citing a violation of the
bonds' "pari passu" (equal treatment) clause, ordered Argentina to
pay that initial group of litigating holdouts $1.3 billion plus
interest before making further payments to the exchange
bondholders.
Other holdout bondholders, known as "me too" litigants, won
similar judgments against Argentina in Judge Griesa's court this
year, bringing the total owed by the South American country to
around $10 billion, the report discloses.
The origins of Argentina's debt default, a decision adopted amid a
financial meltdown and economic depression, go back to Argentina's
1976-1983 military regime, which presided over a 465 percent
expansion in public indebtedness, the report adds.
* * *
As reported in the Troubled Company Reporter-Latin America on
Nov. 27, 2015, Moody's Investors Service has changed the outlook
on Argentina's Caa1 issuer rating to positive from stable. The
outlook on Argentina's (P)Caa2 foreign legislation and
restructured local legislation foreign currency obligations is
also changed to positive from stable. The outlook change is based
on Moody's view that the accession of president-elect Mauricio
Macri of the Cambiemos ("Let's Change") coalition will raise the
probability of credit positive policies being implemented,
including arriving at a resolution with holdout creditors, one of
Argentina's key credit constraints.
On Aug. 1, 2014, the TCR-LA reported that Argentina defaulted on
some of its debt late July 30 after expiration of a 30-day grace
period on a US$539 million interest payment. Earlier that day,
talks with a court- appointed mediator ended without resolving a
standoff between the country and a group of hedge funds seeking
full payment on bonds that the country had defaulted on in 2001.
A U.S. judge had ruled that the interest payment couldn't be made
unless the hedge funds led by Elliott Management Corp., got the
US$1.5 billion they claimed. The country hasn't been able to
access international credit markets since its US$95 billion
default 13 years ago.
As a result, reported the TCR-LA on Aug. 1, Standard & Poor's
Ratings Services lowered its unsolicited long-and short-term
foreign currency sovereign credit ratings on the Republic of
Argentina to selective default ('SD') from 'CCC-/C'.
The TCR-LA, on Aug. 4, 2014, also reported that Fitch Ratings
downgraded Argentina's Foreign Currency Issuer Default Rating
(IDR) to 'RD' from 'CC', and its Short-Term Foreign Currency
Issuer Default Rating to 'RD' from 'C'.
The TCR-LA, On Aug. 6, 2014, also reported that DBRS Inc. has
downgraded Argentina's long-term foreign currency issuer rating
from CC to Selective Default (SD). The short-term foreign
currency rating has been downgraded to Default (D), from R-5. The
long-term and short-term local currency issuer ratings have been
confirmed at B (low) and R-5, respectively. The trend on the
long-term local currency rating is Negative, and the trend on the
short-term local currency rating is Stable.
On Nov. 3, 2014, the TCR-LA reported that Fitch Ratings downgraded
Argentina's rating on Par Bonds issued under Foreign Law to 'D'
from 'C' as Argentina has not been able to cure the missed coupon
payments on its par bonds issued under foreign law after the
expiration of the 30-day grace period on Oct. 30. According to
Fitch's criteria, this constitutes an event of default and Fitch
has downgraded the affected securities to 'D'. In addition, Fitch
has affirmed:
-- Foreign Currency Issuer Default Rating (IDR) at 'RD';
-- Local Currency IDR at 'CCC';
-- Short-term Foreign Currency IDR at 'RD';
-- Country Ceiling at 'CCC'.
-- Performing Foreign Law Exchanged Securities (Global 17) at
'C';
-- Local Currency exchanged bonds under Argentine Law at 'CCC';
-- Foreign and Local Currency non-exchanged securities under
Argentine Law at 'CCC';
-- Discount Bonds issued under Foreign Law at 'D'.
MASTELLONE HERMANOS: Fitch Affirms 'CCC' Issuer Default Ratings
---------------------------------------------------------------
Fitch Ratings has affirmed Mastellone Hermanos Sociedad Anonima's
(Mastellone) Issuer Default Ratings (IDRs) and its senior
unsecured notes. All the ratings have been removed from Negative
Watch.
Fitch's rating action follows Arcor's purchase of 25% of
Mastellone's shares for about USD50 million with options to
purchase an additional 10% for USD35 million in 2017 and up to
100% by 2025. For Mastellone this transaction is beneficial in
that it helps the company overcome its current liquidity issues so
that it can better manage its working capital needs, expand its
business and reduce costs. Mastellone will use the USD50 million
to complete projects which had previously been placed on hold
mainly due to its liquidity position: a milk drying plant at its
Trenque facility, expanding into the San Luis province to produce
and distribute fluid milk in the center of the country.
Fitch had previously placed all ratings on Negative Watch due to
concern over the company's ability to generate sufficient cash to
cover interest payments on its USD200 million notes. Mastellone
reported USD35 million in cash as of Sept. 30, 2015, an
improvement over USD22 million reported as of March 31, 2015.
KEY RATING DRIVERS
Mastellone's 'CCC' ratings reflect the company's operating
environment in Argentina and its contribution to over 80% of
EBITDA as well as its exposure to raw milk production, currency
mismatch, and solid position as the leading processor of dairy
products in Argentina.
Cash Flow Concentrated in Argentina
Mastellone's domestic market contributed 87% to total sales and
82% to EBITDA. Its next most important market is Brazil, which
contributed 7% of total sales and 18% of EBITDA. The company is
exposed to double-digit inflation in Argentina and other direct
and indirect sovereign-related risks, including devaluation and
refinancing risks.
Solid Business Position
Mastellone is the largest dairy company and the leading processor
of dairy products in Argentina. Mastellone maintains the largest
market share of the fluid milk market in terms of physical volume
with a market share of approximately 67%. The company maintains
the first and second positions in most of its product lines. Its
strong market share allows it to benefit from economies of scale
in the production, marketing and distribution of products, and
strengthens its bargaining position. Mastellone purchases about
16% - 18% of raw milk production in Argentina, which provides it
with a good degree of negotiation power.
Exposure to Raw Milk Production
Argentine milk production declined for a second straight year in
2014 by about 2%. Mastellone's business is divided between sales
to the Argentine and Brazilian domestic markets and exports. A
shortage of raw milk production could lead to the interruption of
the company's export business (7% of sales) or an increase in
production costs. Both of these occurred in 2014 as Mastellone
decided not to enter into any new export contracts during the
fourth quarter given the low price of powdered milk and as the
costs related to the purchase of raw milk increased. Mastellone
resumed exporting in the first quarter of 2015.
Currency Mismatch
Mastellone's debt is predominantly USD-denominated and creates
currency risk, since the company's sales are mainly in Argentine
pesos. The company has not entered into any agreements to hedge
its exposure to devaluation risk.
KEY ASSUMPTIONS
Fitch's key assumptions within the rating case for Mastellone
include:
-- The majority of the USD50 million received from Arcor's 25%
purchase will be used towards completion of expansion plans;
-- Revenue growth in line with inflation;
-- EBITDA margin remains close to 2.5% on average;
-- Maintenance level capex of about ARS200 million per year.
RATING SENSITIVITIES
Mastellone's ratings could be negatively affected by further
economic deterioration in Argentina and the company's inability to
convert and transfer foreign exchange. In addition, a
deterioration in cash flow that further weakens its credit metrics
could negatively impact Mastellone's credit rating.
A positive rating action is unlikely in the short- to medium term,
but could occur if Arcor continues to increase its ownership stake
in the company and the strategic and operational linkage between
the two companies is strong.
LIQUIDITY
Mastellone reported cash and marketable securities of about USD35
million as of Sept. 30, 2015. Short-term debt was USD41 million.
Almost 80% of Mastellone's debt is USD-denominated, which creates
significant currency risk, as the company's sales are over 90%
denominated in Argentine Pesos. The company has not entered into
any agreements to hedge its exposure to devaluation risk. The
company has pre-export facilities with local and international
banks; each facility is collateralized by a separate trust
containing either sales collections to the domestic retail market,
inventories (of parent company and Mastellone San Luis), or
Leitesol's purchase order assignments.
Fitch has affirmed the following ratings and removed them from
Negative Rating Watch:
Mastellone Hermanos Sociedad Anonima
-- Foreign currency IDR at 'CCC';
-- Local currency long-term IDR at 'CCC';
-- Senior unsecured notes at 'CCC-/RR4'.
===========
B R A Z I L
===========
BRAZIL: Raises $112.9 Million in Port Terminal Auction
------------------------------------------------------
EFE News reports that Brazil raised BRL430.6 million (some $112.9
million) in an auction of three terminal areas at the Santos port,
South America's busiest, the government said.
The winning bidders in Brazil's first auction of port terminals
under a 2012 law were the LDC Brasil consortium, made up of
multinationals Louis Dreyfus Commodities and Cargill; Marimex
Despachos; and Fibria Papel Celulose, according to EFE News.
BR PROPERTIES: S&P Lowers Global Scale Rating to 'BB-'
------------------------------------------------------
Standard & Poor's Ratings Services said it downgraded BR
Properties S.A. to 'BB-' from 'BB' on global scale and to 'brA'
from 'brAA-' on national scale. At the same time, S&P lowered its
issue-level ratings on BR Properties' secured debt to 'brA+' from
'brAA' and on its unsecured debt to 'brA' from 'brAA-'.
The rating action reflects S&P's view that BR Properties' recently
completed sale of 15 properties weakened its scale and
diversification due to the drop in the portfolio value, total GLA
and the resultant concentration in the office spaces. Although
the company maintains a high quality portfolio with several AAA
properties in favorable locations, S&P believes the smaller scale
and reduced diversification that results in lower future cash flow
generation weakens company's credit profile. In addition, S&P
believes that Brazil's economy and real estate industry will
remain difficult in the near term, with high inflation and
interest rates amid an overcapacity in the office rental markets
in Sao Paulo and Rio de Janeiro. These factors could pressure the
company's occupancy, delinquency rates, rent readjustments, and
profitability. Despite BR Properties' high quality portfolio, its
operating metrics have suffered during the past few quarters
resulting in higher financial and physical vacancy rates, rent
readjustments below inflation rates, and more volatile
profitability metrics. In addition, the sharp rise in Brazil's
basic interest rates pushed up cost of debt, further pressuring
the company's credit metrics. The stable outlook reflects S&P's
expectation that weak domestic economy and high interest rates
will continue to pressure the company's EBITDA interest coverage
and FFO to debt, despite the debt reduction following the recent
asset sales. S&P expects BR Properties to remain as one of the
main players in the industry with a high quality portfolio, but a
significantly smaller and less diversified one than prior to its
portfolio before the sale of assets. S&P expects BR Properties to
report EBITDA interest coverage of 1.4x in 2016 and 1.8x in 2017
and FFO to debt of 7.5% in 2016 and 11% in 2017.
S&P could take a positive rating action if BR Properties bolsters
its EBITDA interest coverage to more than 2.0x and FFO to debt
above 9% during the next 12-18 months. This could occur if it
reduces its debt or the cost of capital, while it maintains its
EBITDA margin above 80%.
S&P could have a negative rating action if EBITDA interest
coverage falls below 1.2x or FFO becomes negative consistently, as
a result of lower-than-expected revenue growth or higher interest
rates. S&P could also consider a downgrade if the company's
profitability deteriorates due to its smaller scale and
diversification, resulting in EBITDA margin below 80%.
PETROLEO BRASILEIRO: Moody's Cuts Sr. Unsecured Debt Rating to Ba3
------------------------------------------------------------------
Moody's Investors Service ("Moody's") downgraded all ratings for
Petroleo Brasileiro S.A. ("Petrobras") and ratings based on
Petrobras' guarantee, including the company's senior unsecured
debt rating, to Ba3 from Ba2. Simultaneously, Moody's placed the
ratings on review for possible further downgrade. The company's
baseline credit assessment (BCA) was lowered to b3 from b2. The
rating and outlook for the unguaranteed ratings of Petrobras
Argentina are unchanged, including the (P)B2 senior unsecured,
positive.
These rating actions reflect Petrobras' elevated refinancing risks
in the face of deteriorating industry conditions that make it more
difficult to raise cash through asset sales; tighter financing
conditions for companies in Brazil and in the oil industry,
coupled with the magnitude of eventual needs to finance debt
maturities; as well as the company's negative free cash flow. The
rating actions also considered Moody's December 9th, 2015 decision
to place Brazil's government Baa3 bond rating under review for
possible downgrade. For more information, please see "Moody's
places Brazil's Baa3 issuer and bond ratings on review for
downgrade" available at moodys.com.
Ratings downgraded and placed under review:
Downgrades:
Issuer: Petroleo Brasileiro S.A. - PETROBRAS
-- Corporate Family Rating, Downgraded to Ba3 from Ba2; Placed
Under Review for further Downgrade
-- Preferred Shelf, Downgraded to (P)B3 from (P)B2; Placed Under
Review for further Downgrade
-- Subordinate Shelf, Downgraded to (P)B1 from (P)Ba3; Placed
Under Review for further Downgrade
-- Senior Secured Shelf, Downgraded to (P)Ba3 from (P)Ba2; Placed
Under Review for further Downgrade
-- Senior UnsecuredShelf, Downgraded to (P)Ba3 from (P)Ba2;
Placed Under Review for further Downgrade
Issuer: Petrobras Global Finance B.V.
-- Backed Senior Unsecured Regular Bond/Debenture, Downgraded to
Ba3 from Ba2; Placed Under Review for further Downgrade
Issuer: Petrobras International Finance Company
-- Backed Subordinate Shelf, Downgraded to (P)B1 from (P)Ba3;
Placed Under Review for further Downgrade
-- Backed Senior Secured Shelf, Downgraded to (P)Ba2 from (P)Ba1;
Placed Under Review for further Downgrade
-- Backed Senior Unsecured Shelf, Downgraded to (P)Ba3 from
(P)Ba2; Placed Under Review for further Downgrade
-- Backed Senior Unsecured Regular Bond/Debenture, Downgraded to
Ba3 from Ba2; Placed Under Review for further Downgrade
Outlook Actions:
Issuer: Petroleo Brasileiro S.A. - PETROBRAS
-- Outlook, Changed To Rating Under Review From Stable
Issuer: Petrobras Global Finance B.V.
-- Outlook, Changed To Rating Under Review From Stable
Issuer: Petrobras International Finance Company
-- Outlook, Changed To Rating Under Review From Stable
RATINGS RATIONALE
Petrobras' Ba3 ratings reflect Moody's joint-default analysis for
the company, which is a government-related issuer. Petrobras' b3
baseline credit assessment (BCA) indicates Moody's view of its
standalone credit strength, and considers the company's high
financial leverage, negative free cash flow, and operating
challenges in a difficult environment. "The rating downgrade to
Ba3 was based on Moody's view that Petrobras' financial strength
has weakened and refinancing risk has increased. The company's
goal to meaningfully deleverage through capital spending
reductions, operating improvements, and raising USD 15 billion
from asset sales over the next 12 months carries high execution
risk under current depressed energy industry conditions and may
limit oil production growth in the medium term", said Nymia
Almeida, a VP-Sr.
Credit Officer at Moody's Investors Service. "Free cash flow will
remain negative in the foreseeable future as international oil
prices remain weak, even though downstream losses are limited by
stable local prices for oil products; further local currency
devaluation is another significant risk to downstream results",
added Almeida. The company also faces challenges related to
corruption investigations, which create management distractions
that may hinder efforts to improve the company's financial profile
and also carries the risk of significant losses due to fines. In
turn, Petrobras' b3 BCA and Ba3 rating are supported by the
company's large-scale reserve base and dominance in the Brazilian
oil industry, and its importance to the Brazilian economy.
Furthermore, the ratings reflect the company's sizeable pre-salt
reserves, its technological offshore expertise and potential for
continued growth in production over the long-term.
Moody's joint-default analysis continues to assume a high
probability of support from the government of Brazil. The agency's
assumption for default dependence between Petrobras and the
government continues to be moderate. This assessment currently
results in a three-notch uplift of Petrobras' senior unsecured
rating to Ba3 from its b3 BCA.
Petrobras has significant refinancing risk. It has about USD 24
billion in debt maturing in 2016-2017 and roughly USD 25 billion
in cash holdings, of which about USD 10 billion represents
operating cash. Alternative sources of funding are limited in
Brazil as local banks face their own capital restrictions.
Petrobras has recently looked overseas, raising USD 5 billion from
the China Development Bank (Aa3 stable) and signing a USD 2
billion, 10-year sale-leaseback agreement on two oil platforms
with the Industrial and Commercial Bank of China Financial Leasing
("ICBC Financial Leasing Co., Ltd." A2 stable). In addition,
practically all of Petrobras's assets are unencumbered and could
secure new loans.
The company plans to direct USD 19 billion to capital spending in
2016, a 50% reduction from the 2011-14 average, in an effort to
protect cash, which raises operating concerns with regards to
production growth. In addition, although international prices of
oil products have been lower than local prices and these are not
adjusted down when international prices decline, price increases
in Brazil have not been enough to offset the over 50% local
currency devaluation in the first nine months of 2015, which
negatively affected purchases of crude and imports of gasoline and
diesel.
The review of Petrobras' ratings will focus on the company's
refinancing risk, which exacerbates liquidity risk; in this
regard, Moody's will review the company's ability to access credit
markets and sell assets as well as its operating performance,
including the ability to substantially improve margins and sustain
production growth. The review will also encompass the likelihood
that the government of Brazil will be able to provide adequate
timely support in case of need. Despite the government's stated
willingness to stand behind Petrobras, its current weak fiscal
situation as well as the country's fragile economic and political
situation may prevent the government from fully supporting
Petrobras to avoid a default. As a consequence, the current
assumption of high support could decline and the number of notches
uplift from Petrobras' b3 BCA could also decline.
Petrobras, based in Rio de Janeiro, is an integrated energy
company, with total assets of USD 234 billion as of September 30,
2015. Petrobras dominates Brazil's oil and natural gas production,
as well as downstream refining and marketing. The company also
holds a significant stake in petrochemicals and a position in
sugar-based ethanol production and distribution. The Brazilian
government directly and indirectly owns about 46% of Petrobras'
outstanding capital stock and 60.5% of its voting shares.
==========================
C A Y M A N I S L A N D S
==========================
ALPINE CAPITAL: Court Enters Wind-Up Order
------------------------------------------
On Oct. 19, 2015, the Grand Court of Cayman Islands entered an
order to wind up the operations of Alpine Capital (Cayman), Ltd.
The company's liquidators are:
Geoffrey Varga
Jess Shakespeare
c/o Helen Ennis
Duff & Phelps (Cayman) Limited
The Harbour Centre,
42 North Church Street
P.O. Box 10387 Grand Cayman KY1-1004
Cayman Islands
Telephone: (345) 623 9902
Facsimile: (345) 943 9900
AMAHARDWOODS LIMITED: Commences Liquidation Proceedings
-------------------------------------------------------
On Oct. 30, 2015, the members of Amahardwoods Limited resolved to
voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Dec. 2, 2015, will be included in the company's dividend
distribution.
The company's liquidator is:
Appleby Trust (Cayman) Ltd.
c/o Richard Gordon
75 Fort Street
P.O. Box 1350 Grand Cayman KY1-1108
Cayman Islands
Telephone: +1 (345) 949 4900
BULLION LTD: Commences Liquidation Proceedings
----------------------------------------------
On Oct. 30, 2015, the sole shareholder of Bullion 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:
Carrie B. Kingsley
M. Safra & Co., Inc.
499 Park Avenue, 11th Floor
New York, NY 10022
USA
CFIP ULTRA: Commences Liquidation Proceedings
---------------------------------------------
On Oct. 26, 2015, the members of CFIP Ultra Overseas Fund, Ltd
resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Dec. 8, 2015, will be included in the company's dividend
distribution.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 31237 Grand Cayman KY1-1205
c/o Samantha Wood
Telephone: (345) 947 4700
HARBOR BRIDGE: Commences Liquidation Proceedings
------------------------------------------------
On Oct. 26, 2015, the members of Harbor Bridge Master Fund L.P.
resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Dec. 10, 2015, will be included in the company's dividend
distribution.
The company's liquidator is:
Nicola Cowan
DMS Corporate Services Ltd.
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
HM MVS: Placed Under Voluntary Wind-Up
--------------------------------------
On Oct. 30, 2015, the shareholders of HM MVS Holdings Inc.
resolved to voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Dec. 2, 2015, will be included in the company's dividend
distribution.
The company's liquidator is:
Stuarts Walker Hersant Humphries
P.O. Box 2510 Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
NOLA LTD: Placed Under Voluntary Wind-Up
----------------------------------------
On Oct. 30, 2015, the sole shareholder of Nola Ltd. resolved to
voluntarily wind up the company's operations.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Elian Fiduciary Services (Cayman) Limited
c/o Justin Savage
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949-9877
89 Nexus Way, Camana Bay
Grand Cayman KY1-9009
Cayman Islands
PRIME BUSH: Commences Liquidation Proceedings
---------------------------------------------
On Oct. 30, 2015, the sole shareholder of Prime Bush 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:
Rethy Wulur Sukardi
c/o Guthrie GTS Limited
1 Fifth Avenue
Guthrie House 268802
Singapore
RUSSIAN STEPPES: Commences Liquidation Proceedings
--------------------------------------------------
On Oct. 19, 2015, the sole shareholder of Russian Steppes Fund
Limited resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Dec. 10, 2015, will be included in the company's dividend
distribution.
The company's liquidator is:
Victor Murray
MG Management Ltd.
Landmark Square, 2nd Floor, 64 Earth Close
Seven Mile Beach
P.O. Box 30116 Grand Cayman KY1-1201
Cayman Islands
Telephone: +1 (345) 749 8181
Facsimile: +1 (345) 743 6767
SANITAS GLOBAL: Placed Under Voluntary Wind-Up
----------------------------------------------
On Oct. 30, 2015, the sole shareholder of Sanitas Global
Opportunity Fund, Ltd. resolved to voluntarily wind up the
company's operations.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Crestone Asset Management LLC
c/o Ridhiima Kapoor
Ogier
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949-9877
SURREY LTD: Placed Under Voluntary Wind-Up
------------------------------------------
On Oct. 30, 2015, the sole shareholder of Surrey Ltd. resolved to
voluntarily wind up the company's operations.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Elian Fiduciary Services (Cayman) Limited
c/o Justin Savage
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949-9877
89 Nexus Way, Camana Bay
Grand Cayman KY1-9009
Cayman Islands
TRACTMANAGER KSA: Placed Under Voluntary Wind-Up
------------------------------------------------
On Oct. 30, 2015, the sole shareholder of Tractmanager KSA, Inc.
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:
Tractmanager Global, Inc.
c/o Justin Savage
Ogier
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949-9877
UNIVERSAL BROKERAGE: Commences Liquidation Proceedings
------------------------------------------------------
On Oct. 29, 2015, the sole shareholder of Universal Brokerage
Services 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:
Lorenzo Pagano
Harneys Services (Cayman) Limited
Harbour Place, 4th Floor
103 South Church Street
P.O. Box 10240 Grand Cayman KY1-1002
Cayman Islands
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REP: Head Discloses Big Plans, but Still Skirts Press
---------------------------------------------------------------
Dominican Today reports that President Danilo Medina announced an
ambitious effort to attract the private sector into government-led
initiatives aimed at building infrastructure projects in mass
transit and energy, among other major investments.
Mr. Medina said Dominican Republic's energy deficit is so
pronounced that even international organizations list it as a
major hurdle in the country's development, and also what prompted
his administration to build the two coal-fired plants at Punta
Catalina (south), according to Dominican Today.
As invited speaker for the American Chamber of Commerce's (Amcham-
DR) yearend luncheon, notes the report, Mr. Medina invited the
business leaders not be afraid and take risks by investing in the
country's energy system, affirming that "I'm the Dominican who's
most convinced that in order to progress, the electricity problem
must first be solved."
"It is urgent to change the fuel sources to lower costs. We were
called upon to act so we proceeded, the State could not stand idly
by withstanding high oil prices," the chief executive said,
reiterating that in the endeavor, his administration wants
partners from the private sector, the report discloses.
Natural Gas
The notes that Mr. Medina mentioned two major natural gas projects
in the offing: A gas pipe to supply the eastern region using the
AES Dominicana terminal in Andres Boca Chica, and an unspecified
facility in the Northwest.
Mr. Medina said he wants to open up the infrastructure to
investment in natural gas infrastructure, although a US company
was unable to materialize a similar project during the last five
years on hurdles by the government, the report relays.
"It's a crime to delay development," Mr. Medina said, and toward
that goal also announced government funding to provide titles to
"tens of thousands of properties in the entire nation," opening
the doors to loans "so the citizens can work to get out of
poverty," the report discloses.
Infrastructure
"We are working toward public-private alliances to open new fields
of cooperation especially in mass transport. Owning a car is not
a sign of progress; progress is when the rich and poor prefer
public transport," Mr. Medina said, assuring that mass transit is
a profitable investment, the report relates.
Out of Poverty
The report noted that Mr. Medina affirmed that the country has
increased its middle class from 20% in 2002 to 29% last year,
figures which he says "other countries in Latin America want to
emulate."
"This is the occasion we've been waiting for. We know of the bad
practices in Dominican society. We want to build a country whose
citizen's walk with their heads high and happiness in their
hearts," Mr. Medina added.
Reaction
According to Dominican Today, although Mr. Medina scurried away
when Dominican Today sought to ask him to comment on the country's
judicial and corruption crises, Dominican Industries Association
executive vice president Circe Almanzar after the vent noted that
the head of state's many plans and promises must be tempered with
"wait and see" attitude.
"There were many projects, we are thrilled that he has called on
the private sector to materialize them, we'll wait a see."
On the fight against corruption, Mr. Almanzar noted that as head
of the prosecutors, Medina has to improve transparency from the
Executive Branch, the report adds.
As reported in the Troubled Company Reporter-Latin America on
Dec. 3, 2015, Fitch Ratings has affirmed the Dominican Republic's
long-term foreign and local currency Issuer Default Ratings (IDRs)
at 'B+'.
The Rating Outlooks on the long-term IDRs are revised to Positive
from Stable. The issue ratings on the Dominican Republic's senior
unsecured foreign and local currency bonds are affirmed at 'B+'.
The Country Ceiling is affirmed at 'BB-' and the short-term
foreign currency IDR at 'B'.
DOMINICAN REP: Deputies OK US$244.3MM bond to Boost 2016 Budget
---------------------------------------------------------------
Dominican Today reports that the Chamber of Deputies declared the
legislation urgent to approve a bill authorizing the Finance
Ministry to issue a bond of RD$114.5 billion (US$244.3 million).
The initiative was passed after the Bicameral Finance Commission
issued a favorable report, according to Dominican Today.
The report relates that the legislation will now go to President
Danilo Medina who is expected to sign into law.
Section four of the Act says the Finance Ministry will determine
the type of placement for the bond amount in the securities
market, and the funds will be used as part of the 2016 budget, the
report adds.
As reported in the Troubled Company Reporter-Latin America on
Dec. 3, 2015, Fitch Ratings has affirmed the Dominican Republic's
long-term foreign and local currency Issuer Default Ratings (IDRs)
at 'B+'.
The Rating Outlooks on the long-term IDRs are revised to Positive
from Stable. The issue ratings on the Dominican Republic's senior
unsecured foreign and local currency bonds are affirmed at 'B+'.
The Country Ceiling is affirmed at 'BB-' and the short-term
foreign currency IDR at 'B'.
====================
E L S A L V A D O R
====================
AES EL SALVADOR: Moody's Affirms Ba2 Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service, ("Moody's") affirmed the Ba2 Corporate
Family Rating (CFR) and senior unsecured rating of AES El Salvador
Trust II bis (Trust II bis). At the same time, Moody's changed
Trust II bis' rating outlook to negative from stable.
Trust II bis issued a 10-year bullet US$310 million Notes due in
2023 for the benefit of four electricity distribution affiliates
in El Salvador: Compa¤¡a de Alumbrado Electrico de San Salvador,
S.A. de C.V. (CAESS); the 98.29%-owned subsidiary of CAESS,
Distribuidora Electrica de Usulutan, S.A. de C.V. (DEUSEM); AES
CLESA S. en C. de C.V. (CLESA); and Empresa Electrica de Oriente,
S.A. de C.V. ("EEO"). These four distribution utilities
(collectively the guarantors) jointly, unconditionally and
severally guarantee the debt of Trust II bis.
RATINGS RATIONALE
"Moody's changed the rating outlook to negative from stable due to
the change on November 19, 2015 of the outlook of the El Salvador
sovereign rating to negative from stable" said Natividad Martel, a
Vice-President Senior Analyst.
Trust II bis' Ba2 CFR and senior unsecured ratings reflect the
guarantors' consolidated credit profile given the joint and
several guaranty provided by each which represents a senior
unsecured obligation of each guarantor. It further reflects Trust
II bis' dependence on the guarantors' payments under a promissory
note to service the $310 million bonds. The ratings factor the
guarantors' robust consolidated credit metrics, the regulated
nature and relatively low business risk profile, as well as their
leading position in El Salvadorian electricity distribution sector
but take into consideration their modest size.
The ratings further capture our opinion that the regulatory
framework is overall credit supportive. This considers the credit
constructive outcome of the 2013-2017 tariff review that allow the
guarantors to earn a 10% annual return on the regulated
distribution assets based on their replacement cost before taxes.
That said, the guarantors do not benefit from a fully automatized
cash recovery mechanism. This has historically contributed to lags
in the cash recovery of the costs of procuring power for their
customers. That said, the current low global oil prices are
contributing to the country's low power prices and have
facilitated the guarantor's ability to reduce their significant
regulated asset balances (receivables) and record positive changes
in their working capital during the first nine months of 2015.
The ratings further factor in the six month debt service reserve
account (interest only) required under the terms of the Notes, the
3-year committed bank credit facilities that expire in February
2017 and aggregate $16.1 million. These are currently fully
available albeit borrowings are subject to conditionality, a
credit negative. The rating further incorporates the expectation
that the issuer will continue to manage appropriately its dividend
policy to maintain significant cash balances that aggregated $31.1
million at the end September 2015.
The guarantor's ability to maintain a robust liquidity profile
remains a key driver for the one-notch difference with the current
Ba3 government rating. The one notch differential also considers
the infrastructure nature of the guarantors' operations, in
addition to the limited moratorium risk, given that the country's
economy is officially dollarized, which supports the current Ba1
Foreign Currency bond and deposit ceiling ratings of El Salvador.
Given the negative outlook limited prospects for a rating upgrade
exist over the near to medium term, particularly given that the
rating is effectively capped by the government sovereign rating
given its domestic in country operations.
Trust II bis' ratings could be downgraded if we perceive that the
liquidity arrangements are insufficient to comfortably cope with
potential external shocks. Negative rating momentum is likely if
the El Salvadorian sovereign ratings were to be downgraded and/or
if AES' ratings were to experience a multi-notch downgrade. A
downgrade could also result from unexpected changes in the
regulatory framework that reduce the predictability or consistency
in which the framework is applied, and/or if the consolidated
credit metrics deteriorate, such that the consolidated interest
coverage ratio and the CFO pre-W/C to debt fell below 3x and 11%,
respectively, for an extended period or if AES' aggressive
distribution policy results in RCF to debt falling below 7% for an
extended period, could also result in a downgrade.
The guarantors' service territory extends over 80% of the country
while their market share in terms of the national electricity
demand exceeds 65%. They are subject to the regulatory overview of
the Superintendencia General de Electricidad y Telecomunicaciones
(SIGET). The guarantors' ultimate parent company is AES Corp (AES;
CFR: Ba3, stable), headquartered in Arlington, Virginia, which
holds indirect ownership stakes ranging between 64.15% and 89.11%,
averaging 80% overall.
=============
J A M A I C A
=============
JAMAICA: World Bank Says Country Needs Stronger Growth
------------------------------------------------------
RJR News reports that the World Bank said Jamaica will need
stronger growth if it is to have sustainable debt reduction.
Growth is expected to be 1.5% this fiscal year, as the economy
recovers from drought last year, according to RJR News.
To date, fiscal consolidation efforts have relied primarily on
expenditure cuts, the report relates. But the World Bank says, as
these expenditure cuts reach their limits, revenue generating
reforms will become critical to future fiscal sustainability,
notes the report.
It also said an increase in high return public investments could
also support growth and debt sustainability, 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
===========
ABENGOA MEXICO: Moody's Cuts Issuer Rating to C; No Outlook
-----------------------------------------------------------
Moody's de Mexico has downgraded the issuer rating assigned to
Abengoa Mexico, S.A. de C.V. to C from Caa2. At the same time,
Moody's confirmed the NP and MX-4 ratings assigned to the
company's commercial paper program.
Issuer: Abengoa Mexico, S.A. de C.V.
Downgrades:
-- Issuer Rating, Downgraded to C from Caa2
-- Issuer Rating, Downgraded to C.mx from Caa2.mx
Affirmations:
-- Senior Unsecured Commercial Paper, Affirmed NP
-- Senior Unsecured Commercial Paper, Affirmed MX-4
Outlook Actions:
-- Outlook, Changed To No Outlook From Negative
RATINGS RATIONALE
The downgrade was prompted by the announcement made by Abengoa
Mexico on December 3, 2015 about missed payments of principal and
coupons under certain issuances of its commercial paper program of
which MXN 2.1 billion are currently outstanding. Under the
underlying indentures, the missed payments constitute an event of
default if not cured in a 5-day period and trigger the anticipated
amortization of all debt outstanding under the program.
Considering that the missed payments refer to a modest amount of
around MXN 267 million (USD 15.8 million), Abengoa Mexico's
inability to service them reflects the lack of access of the
Mexican subsidiary to its surplus in the centralized treasury
controlled by its parent company, Abengoa S.A. (Caa2, negative) in
Spain. As of the end of September 2015, Abengoa Mexico's net
position in the group's centralized treasury was of MXN 7.4
billion. For the same period, cash on hand was MXN 103 million.
Abengoa S.A. is currently facing severe liquidity restrictions. On
November 25, 2015, Abengoa S.A. announced the cancellation of the
expected equity injection expected from Gonvarri Corporacion
Financiera (Gonvarri), given its consideration that the condition
of a substantial financial package was unfulfilled. The company
also announced that it made a formal filing under article 5 bis of
the Spanish Insolvency Law (Ley Concursal), which though not a
default in itself, reflects the precarious liquidity absent the
equity raising and may be a likely precursor to a formal
restructuring proceeding. For further detail on the rating action
on Abengoa S.A., please refer to moodys.com.
Without the access to the group's centralized treasury, we
estimate that recovery for senior unsecured creditors will be very
low and in line with the C rating assigned. Moreover, further
pressuring recovery prospects is the fact that Abengoa Mexico is
one of the subsidiaries guaranteeing a large portion of the
group's debt. As of the end of 2014, Abengoa S.A. estimated that
the group of guarantors accounted for around 75% of consolidated
EBITDA. We estimate guaranteed debt as of the end of 2014 at
around EUR 3.8 billion. We do not adjust Abengoa Mexico's leverage
to account for guaranteed debt as the subsidiary is only a small
contributor to the guarantor group. However, these instruments
rank at the same level as Abengoa Mexico's commercial papers,
which recovery prospects are therefore very low under a
liquidation scenario.
A ratings upgrade is not envisioned in the short run, longer term,
a positive rating action will require a substantial improvement in
the company's liquidity position. Given the linkage between
Abengoa Mexico and its parent company, a positive rating action
for Abengoa Mexico would also require material improvements in
Abengoa S.A. credit profile.
The C rating assigned is the lowest rating that can be assigned by
Moody's.
Headquartered in Mexico City, Abengoa Mexico is a fully owned
subsidiary of Abengoa S.A. (Caa2, negative outlook). The company
was founded in 1981 to conduct Abengoa S.A.'s business in Mexico.
The company is well integrated into its parent's operation, with
its main activity being the engineering & construction (E&C) of
projects related with the energy industry. For the last twelve
months (LTM) ended in September 30, 2015, Abengoa Mexico's revenue
and Moody's-adjusted EBITDA margin were USD 254 million and 24.7%
respectively.
CORPOVAEL: Moody's to Retain B1 CFR on Initial Public Offering
--------------------------------------------------------------
Moody's de Mexico said that Corpovael's initial public offering is
credit positive, but it does not impact the company's stable
outlook or B1 corporate family ratings or the Ba3 / A3.mx ratings
on its certificados bursatiles CADU 14.
Moody's said that Corpovael's initial public offering is credit
positive, but it does not impact the company's stable outlook or
B1 corporate family ratings or the Ba3 / A3.mx ratings on its
certificados bursatiles CADU 14.
Moody's National Scale Credit Ratings (NSRs) are intended as
relative measures of creditworthiness among debt issues and
issuers within a country, enabling market participants to better
differentiate relative risks. NSRs differ from Moody's global
scale credit ratings in that they are not globally comparable with
the full universe of Moody's rated entities, but only with NSRs
for other rated debt issues and issuers within the same country.
NSRs are designated by a ".nn" country modifier signifying the
relevant country, as in ".za" for South Africa.
Heathquartered in in the city of Cancun in the Mexican state of
Quintana Roo, Corpovael, S.A. de C.V ("Corpovael" or "Cadu"). is a
Mexican homebuilding company, operating through an integrated
business model in the Mexican states of Quintana Roo, Jalisco,
Estado de Mexico, Aguascalientes and Guanajuato. The company is
focused in the low income housing segment and has a leading market
position in the state of Quintana Roo that will represent around
53% of Corpovael's total titled houses for the 9M15. For the LTM
ended in September 30, 2015 the company had revenues of MXN 3,891
million and an EBITDA margin of 18%.
MINERA FRISCO: Moody's Lowers CFR to B2; Outlook Negative
---------------------------------------------------------
Moody's de Mexico downgraded Minera Frisco. S.A.B. C.V.'s
corporate family rating to B2 from B1 in the global scale and to
Ba1.mx from Baa2.mx in the national scale. At the same time,
Moody's downgraded the long term and short term ratings of Minera
Frisco's dual unsecured debt program of Certificados Bursatiles
(local notes) for a total combined amount of up to MXN 20 billion
to (P)B3/B1.mx from (P)B1/Baa2.mx and to MX-4 from MX-2,
respectively. The provisional rating on the program assumes the
structural subordination but the program has not been undrawn.
The outlook is negative.
Downgrades:
Issuer: Minera Frisco, S.A.B. De C.V.
Corporate Family Rating, Downgraded to B2/Ba1.mx from B1/Baa2.mx
Senior Unsecured Medium-Term Note Program, Downgraded to MX-4
from MX-2
Senior Unsecured Medium-Term Note Program, Downgraded to
(P)B3/B1.mx from (P)B1/Baa2.mx
Senior Unsecured Regular Bond/Debenture, Downgraded to B3/B1.mx
from B1/Baa2.mx
Outlook Actions:
Issuer: Minera Frisco, S.A.B. De C.V.
Outlook, Changed To Negative From Stable
Withdrawals:
Issuer: Minera Frisco, S.A.B. De C.V.
Issuer Rating, Withdrawn , previously rated B1/Baa2.mx
RATINGS RATIONALE
The ratings downgrade is driven by Minera Frisco's tight liquidity
and by the expected weaker credit metrics and cash generation as a
consequence of deteriorating fundamentals in the mining industry
along with recent operating difficulties in El Coronel and
Concheno, two of the most important mines in terms of revenues.
As of September 2015, Minera Frisco's outstanding debt of about
USD1.4 billion consisted of USD300 million of local long term
notes due in August 2018 and a USD1.1 billion syndicated facility
with the first amortization of USD220 million maturing on Dec. 14,
2015. Such maturities compare with a modest cash on hand position
of USD 36 million. Even considering the roll over in its
syndicated facility, the amount of debt coming due over the next
couple of years will still be considerable.
In addition, Minera Frisco's internal cash generation is being
challenged by the weak metals prices environment, which is not
expected to recover over the next year. The company has been
improving cost efficiency and reducing capital expenditures, but
margins and credit metrics will remain under pressure partially
mitigated by hedges on its main metals of operations. Moody's
estimates gold, silver and copper prices at $950/oz, $14/oz, and
$1.90/lb, respectively, in 2016.
Minera Frisco' B2 CFR ratings reflect its (i) tight liquidity ,
(ii) modest credit metrics, revenue size and reserves in some of
its mines, and (iii) high business risk derived from deteriorating
industry fundamentals which are expected to remain weak through
2016. On the other hand, the ratings are still supported by
Minera Frisco's good mine diversification and expected further
metal diversification by 2017 once Tayahua mine doubles its copper
production.
The (P)B3/B1.mx rating on Minera Frisco's senior unsecured debt
dual program of local notes reflects its structural subordination
to the company's existing guaranteed debt. The proposed new
syndicated facility will preserve the guarantees from the
operating subsidiaries and, pro-forma to the transaction, the
percentage of guaranteed debt will remain at about 77%, assuming
no issuances under the local notes program.
The negative outlook reflects Moody's expectation that Minera
Frisco will face higher volatility and continued weak prices,
which will continue to pressure its operating performance,
leverage, and overall credit metrics. In addition, weaker cash
generation will result in tight liquidity even pro-forma to the
refinancing of its USD 1.1 billion syndicated facility.
An upgrade would require improvements in liquidity and credit
metrics. Quantitatively, an upgrade would require leverage below
4.0 times and EBIT/interest expense above 2.5 times on a sustained
basis, both as adjusted by Moody's.
The ratings could be downgraded if Minera Frisco experiences any
significant operational difficulties, substantial increase in
operating costs, or further deterioration in liquidity position.
A downgrade would also be considered should debt/ EBITDA increase
to above 5.0x as adjusted by Moody's on a sustained basis and if
the company is not able to execute its liability management
strategy.
Minera Frisco is dedicated to the exploration and exploitation of
mining lots for the production and sale of mainly gold and silver
dore bars, as well as copper cathode and copper concentrate, lead-
silver and zinc concentrates. As of Sept. 30, 2015, the company
had 8,189 employees and nine mining units in Mexico: El Coronel,
San Felipe, El porvenir, Concheno, Mar¡a, Ocampo, Tayahua,
Asientos, and San Francisco del Oro, and two developing projects.
Through alliances and own resources, the company uses cutting-edge
technology for the localization and processing of minerals and
carries out environmental administration initiatives focused on
minimizing the generation of residues and optimizing water and
energy consumption, while compensating for adverse environmental
impacts. For the last twelve months ended Sept. 30, 2015, the
company generated about USD 880 million in revenues.
VINTE VIVIENDAS: Moody's Affirms B1 CFR & Changes Outlook to Pos.
-----------------------------------------------------------------
Moody's de Mexico changed the outlook on Vinte Viviendas
Integrales, S.A.P.I. de C.V. ('Vinte')'s ratings to positive from
stable. At the same time, Moody's affirmed Vinte's B1/ Baa1.mx
corporate family ratings.
RATINGS AFFECTED
-- Corporate family rating: B1 Affirmed. Positive outlook.
-- NSR LT Corporate Family Ratings: Baa1.mx Affirmed. Positive
outlook.
-- Rating Outlook: Changed to Positive from Stable
RATINGS RATIONALE
The change in outlook reflects Vinte's sustained growth and the
gradual improvement in its credit metrics over the last couple of
years, despite challenging operating conditions for Mexican
homebuilders. Vinte's credit metrics are strong when compared to
global peers, with Debt / Total Capitalization as adjusted by
Moody's of 36.6% and gross margin at 31.8%, both for the LTM ended
Sept. 30, 2015. Moreover, the company has been able to maintain a
solid growth trajectory, at a revenues CAGR of around 24% in the
last seven years. This period includes the sector's crisis in
2013, in which most companies in the industry saw a deterioration
in its operations, resulting in debt defaults for the three
largest players in the sector. Vinte's resilience was a direct
consequence of its lower exposure to subsidies, as well as of its
business model mainly supported by a diverse product mix and
presence in markets with positive housing dynamics.
Vinte's B1 corporate family rating reflects its track record of
sustained growth and strong profitability, through a prudent
business strategy and conservative financial policies. These
positives are offset by Vinte's very limited scale when compared
to industry peers and by our expectations that working capital
needs related to its rapid growth phase will continue to pressure
cash flow generation. Additionally, we anticipate that increased
competitive pressures in Vinte's markets and expansionary plan
will result in profitability pressures.
Vinte's liquidity is negatively affected by the fact it cannot
cover working capital needs related with its expansion plan with
internal sources. However, the company currently has enough
availability under working capital and construction lines, used
primarily to fund construction. In addition, take-out financing
comes mainly from government entities and is broken down as
follows as of LTM ended in September 2015: 27% Mexican Workers'
Housing Fund (Infonavit); 38% Fovissste; 16% banks; 10% co-
financing; and the balance cash. Despite the concentration with
Infonavit and Fovissste, Vinte is among the homebuilders with
higher diversification in terms of take-out financing. Also
mitigating liquidity concerns are the efficiency improvements in
both institutions that have resulted in a wider spectrum of
mortgage products and faster mortgage origination processes.
For the construction process, Vinte has around MXN 2 billion in
revolving credit lines with a myriad of local and international
institutions. As of September 2015, availability under those
lines was MXN 1.0 billion, with an average maturity of 4 years.
Relevant credit lines include a MXN 700 million syndicated
construction loan signed with Sociedad Hipotecaria Federal (SHF)
and Nacional Financiera (Nafin) maturing in 2021; the MXN 136
million revolving credit line with the IFC maturing in 2017; and
the MXN 400 million loan with DEG maturing in 2018 and 2021. Also
supporting Vinte's liquidity profile is its relationship with IFC,
IDB and DEG as either key shareholders or lenders.
The positive rating outlook assumes that Vinte will be able to
increase its scale through a rational expansionary growth, that
will support profitability and credit metrics at current levels.
An upgrade will require a material increase in Vinte's revenue
base over the next several quarters, while maintaining strong
credit metrics. Quantitatively, the company will need to maintain
Debt / Total Capitalization below 40% and EBIT Interest Coverage
closer to 4.0x. Positive and growing cash flow from operations is
also required for a rating upgrade.
A downgrade would result from substantial missteps in Vinte's
growth strategy resulting in postponement of new launches,
construction delays and a reduction in new home sales. In
addition, negative ratings pressure would result if the company
were to face a significant deterioration in its liquidity profile,
likely resulting in negative free cash flow and a rise in
leverage. Negative pressure could arise if total debt to
capitalization increases closer to 50% range or the EBIT interest
coverage drops below 3.0 times on a sustained basis.
Vinte Viviendas Integrales, S.A.P.I. de C.V., based in Mexico
City, Mexico, is a fully integrated, diversified homebuilder
engaged in the design, development, construction, marketing,
commercialization and delivery of economic/affordable entry-level,
middle-class and upper-income housing developments in Mexico. As
of the LTM ended Sept. 30, 2015, Vinte reported MXN 2.5 billion in
revenues with a 32% adjusted gross margin. Vinte is a private
company, was founded in 2001 and started operating in 2003. The
IFC and IDB are shareholders of the company with 10% and 5%
stakes, respectively.
The principal methodology used in these ratings was Homebuilding
and Property Development Industry published in April 2015.
The period of time covered in the financial information used to
determineVinte, Viviendas Integrales, S.A.P.I. de C.V.'s 's rating
is between 1/1/2010 and 9/30/2015 (source: Audited Annual Reports
and Quarterly Unaudited Reports filed with the Mexican Stock
Exchange).
======================
P U E R T O R I C O
======================
COCO BEACH: IPFS Seeks to Terminate Insurance Premium Finance Deal
------------------------------------------------------------------
IPFS Corporation asks the U.S. Bankruptcy Court for the District
of Puerto for relief from the automatic stay imposed in the
Chapter 11 case of Coco Beach & Country Club, SE, to allow it to
terminate its insurance premium finance agreement and to recover
its unearned insurance premiums for the benefit of the Debtor.
In the alternative, IPFS asks the Court to issue an order
requiring the Debtor to make adequate protection payments. IPFS
also requests grant of attorney's fees and costs associated with
the filing of this Motion allowing IPFS a "super-priority"
administrative claim.
IPFS Corporation is represented by:
Jesus E. Cuza, Esq.
Joaquin J. Alemany, Esq.
HOLLAND & KNIGHT LLP
701 Brickell Avenue, Suite 3300
Miami, Florida 33131
Phone: (305) 789-7763
Fax: (305) 789-7799
Email: jesus.cuza@hklaw.com
Email: joaquin.alemany@hklaw.com
About Coco Beach Golf
Coco Beach Golf & Country Club, S.E., is the owner of a first
class golf and country club in Rio Grande, Puerto Rico, currently
operating under the name of Trump International Golf Club Puerto
Rico. Trump International Golf Club has two 18-hole golf courses
and country club facilities.
The Company sought Chapter 11 protection (Bankr. D.P.R. Case No.
15-05312) in Old San Juan, Puerto Rico, on July 13, 2015, and
immediately filed a motion seeking to sell most of the assets for
$2.04 million in cash to OHorizons Global, LLC, subject to higher
and better offers.
COCO BEACH: Wants Pre-Transfer Date Liens on Golf Club Cancelled
----------------------------------------------------------------
Coco Beach Golf & Country Club, S.E., and OHorizons Global, LLC,
ask the U.S. Bankruptcy Court for the District of Puerto to cancel
all pre-transfer date liens upon the Golf Parcel located in the
Municipality of R¡o Grande, Puerto Rico.
The parties also ask the Court direct the Registrar of the
Property in charge of the Third Section of Carolina to allow for
the recordation and inscription of the transfer of the rights,
title and interest over the Golf Parcel from the Debtor to Coco
Beach Golf, LLC, and direct CRIM and Treasury to record the Gold
Parcel in the name of Coco Beach Golf, LLC.
Coco Beach Golf & Country Club, S.E. is represented by:
Wigberto Lugo Mender, Esq.
Centro Internacional de Mercadeo
Carr #165 Torre 1 Suite 501
Guaynabo, PR 00968
Phone:(787) 707-0404
Fax:(787) 707-0412
Email:trustee@lugomender.com
About Coco Beach Golf
Coco Beach Golf & Country Club, S.E., is the owner of a first
class golf and country club in Rio Grande, Puerto Rico, currently
operating under the name of Trump International Golf Club Puerto
Rico. Trump International Golf Club has two 18-hole golf courses
and country club facilities.
The Company sought Chapter 11 protection (Bankr. D.P.R. Case No.
15-05312) in Old San Juan, Puerto Rico, on July 13, 2015, and
immediately filed a motion seeking to sell most of the assets for
$2.04 million in cash to OHorizons Global, LLC, subject to higher
and better offers.
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SURINAME: Will Continue Education Reforms With $20MM-IDB Support
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Improvements in the access, quality and equity of Suriname's
educational system that will benefit 90,000 students and 6,500
teachers are part of a new phase of the country's Basic Education
Improvement Program (BEIP), to be financed with a [US$20 million]
loan approved by the Inter-American Development Bank (IDB).
BEIP will invest nearly US$12 million in developing the curriculum
and textbooks for the 7th and 8th grades, in order to improve the
level of education of students. This phase continues an earlier
program, launched in 2003 with IDB support, that gradually
developed the curriculum and textbooks for all the other preschool
and primary grades. The program also will provide educators with
training in new teaching tools and the development of on-line
content.
Approximately US$5 million will be used to renovate classrooms and
build residences for teachers in the countryside, where students
are most vulnerable and have the highest risk of dropping out. As
part of infrastructure improvements, funds also will be used to
build a home for the Center for Continuous Education Improvement
(CENASU in its Dutch language acronym) that will provide adequate
space for training teachers and other professional development
activities. CENASU does not currently have a home.
The IDB also will work closely with Suriname's Ministry of
Education, Science and Culture to strengthen the capacity of its
departments through the acquisition of equipment and training
sessions to support the ministry in its daily operations. About
US$2 million will go toward improving these capacities.
The IDB loan is for 25 years, with a grace period of 5.5 years and
an interest rate based on LIBOR.
As reported in the Troubled Company Reporter-Latin America on
April 29, 2015, Fitch Ratings has affirmed Suriname's long-term
foreign and local currency Issuer Default Ratings (IDRs) at 'BB-'.
The Rating Outlooks on the long-term IDRs are Stable. In
addition, Fitch has affirmed Suriname's Country Ceiling at 'BB-'
and short-term foreign currency IDR at 'B'.
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Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
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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.
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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.
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