/raid1/www/Hosts/bankrupt/TCRLA_Public/160126.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
Tuesday, January 26, 2016, Vol. 17, No. 17
Headlines
A R G E N T I N A
ARGENTINA: US Drops Opposition to Development Bank Lending
B R A Z I L
BRAZIL: Seeks Buyers for Abandoned Abengoa Projects
RIO OIL: Fitch Cuts US$2BB Series 2014-1 Notes Rating to 'BB-'
C A Y M A N I S L A N D S
BLACKSTONE PARTNERS: Commences Liquidation Proceedings
COMOROS LTD: Creditors' First Meeting Set for Jan. 26
COMOROS 2: Creditors' First Meeting Set for Jan. 26
CRYSTAL FUND: Commences Liquidation Proceedings
DELLACAMERA DISTRESSED: Commences Liquidation Proceedings
DELLACAMERA DISTRESSED MASTER: Commences Liquidation Proceedings
ELEDONE SPC: Placed Under Voluntary Wind-Up
JPMP ASIA: Commences Liquidation Proceedings
LIBERTYVIEW ALTERNATIVE: Commences Liquidation Proceedings
LIPIZZANER LDC: Placed Under Voluntary Wind-Up
LIQUIDATION OPPORTUNITIES: Placed Under Voluntary Wind-Up
LIQUIDATION OPPORTUNITIES MASTER: Placed Under Voluntary Wind-Up
LISTON FUNDING: Commences Liquidation Proceedings
ORYX STRUCTURED: Commences Liquidation Proceedings
RSL COMMUNICATIONS: Creditors' Proofs of Debt Due Feb. 16
UBS EQUITY: Commences Liquidation Proceedings
UBS EQUITY TECHNOLOGY: Commences Liquidation Proceedings
VECTOR OPPORTUNITIES: Commences Liquidation Proceedings
C H I L E
GEOPARK LATIN AMERICA: S&P Lowers Rating to 'B-'; Outlook Stable
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Fitch Assigns 'B+' Rating to USD1BB Bond
G U A T E M A L A
BANCO DE DESARROLLO: Fitch Affirms 'BB' IDR; Outlook Stable
P U E R T O R I C O
SPANISH BROADCASTING: Bluestone Fin'l Owns 8% of Class A Shares
PUERTO RICO: Treasury Sec. Prods Congress on Bankruptcy
PUERTO RICO ELECTRIC: Deal at Risk as Lawmakers Hit Deadline
S U R I N A M E
SURINAME: Approaches IMF to Discuss Possible Financial Support
V E N E Z U E L A
VENEZUELA: Congress Rejects Maduro's Economic Plan
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: US Drops Opposition to Development Bank Lending
----------------------------------------------------------
Jonathan Randles at Law360.com reports that the U.S. said it will
drop its years old opposition to Argentina's obtaining development
loans in recognition of economic reforms being sought by newly
elected Argentine President Mauricio Macri.
The decision followed a meeting at the World Economic Annual
Meeting in Davos, Switzerland, between U.S. Treasury Secretary
Jacob Lew and Argentine Finance Minister Alfonso Prat-Gay, a
Treasury spokesman said in a statement obtained by Law360.com.
Since 2011, the U.S. has opposed most lending to Argentina from
the multilateral development banks, the report notes. The
Treasury said the U.S. will now consider development lending for
each Argentinean project "on its own merits," the report recalls.
The meeting marked the first time Lew and Prat-Gay have met since
he assumed office; President Marci also briefly attended the
meeting, Treasury said, the report notes.
"Secretary Lew commended Minister Prat-Gay's focus on taking
necessary steps to move Argentina toward stronger and sustainable
economic growth," Treasury said, the report relays.
The decision may have major implications for Argentina, the report
notes. The U.S. is generally one of the largest donors to The
World Bank. However, the relationship between the two countries
has for years been strained during Argentine President Cristina
Fernandez de Kirchner's tenure, the report says.
Argentina was criticized by members of Congress for failing to
satisfy billions in creditor payments and legal judgments, the
report notes. Those issues stem from a 2001 default by Argentina
that followed four years of worsening recession and social unrest,
the report relays.
At the time, it was the largest sovereign debt default in history
and Argentina has sought to restructure more than $100 billion
owed to domestic and foreign creditors, notes the report. Holdout
bondholders NML Capital Ltd. and Aurelius Capital Partners LP has
for years been aggressively pursuing litigation against Argentina
over the default, the report discloses.
But Argentina has refused to satisfy the NML and Aurelius
judgments, the report notes. In November 2013, a group of
Congressman sent a letter to Lew pressuring the White House to
maintain its opposition to new lending from multilateral
development banks in light of Argentina's alleged defiance of the
U.S. court system, the report relays.
The United Nations, meanwhile, has criticized the U.S. for siding
with the hedge funds, the report notes.
Since President Macri assumed office, however, there have been
signs the country is willing to find a resolution to the
litigation. Argentine officials, NML and Aurelius were scheduled
to meet with a mediator this month in New York to discuss a
potential resolution to the litigation, the report says.
NML and Aurelius have sued the country in various jurisdictions
over unpaid judgments tied to a debt default by Argentina more
than a decade ago. Macri was inaugurated into office last month,
the report adds.
* * *
The Troubled Company Reporter-Latin America reported in Nov. 27,
2015, that 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, 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'.
Meanwhile, Moody's Investors Service affirmed Argentina's Caa1
issuer rating, which also applies to domestic law bonds, confirmed
the (P)Caa2 rating for its foreign law bonds, and affirmed the Ca
rating on the original defaulted bonds. The long-term issuer
rating was placed on negative outlook, reported the TCR-LA on Aug.
5, 2014.
On Aug. 8, 2014, the TCR-LA reported that Moody's Latin America
Agente de Calificacion de Riesgo affirmed the deposit, debt,
issuer and corporate family ratings on Argentina's banks and
financial institutions, both on the global and national scales.
The outlook on these ratings has been changed to negative from
stable. At the same time, the rating agency has affirmed the
banks' Caa2 foreign-currency deposit ratings and Not-
Prime short-term ratings. The banks' standalone E financial
strength ratings corresponding to caa1 baseline credit assessments
(BCA) have also been affirmed.
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'.
On April 22, 2015, Moody's Investors Service expanded the portion
of Argentina's debt that is rated (P)Caa2. The (P)Caa2 rating
reflects the higher risk of default for both Argentina's
restructured foreign legislation debt (as before) and,
additionally now, its restructured local legislation foreign
currency obligations, as compared with the risk of default on
other debt instruments issued by Argentina. Argentina's local
currency debt and its non-restructured foreign currency debt are
rated Caa1. The debt that remains in default since Argentina's
2001 default is rated Ca.
===========
B R A Z I L
===========
BRAZIL: Seeks Buyers for Abandoned Abengoa Projects
---------------------------------------------------
Luciano Costa at Reuters reports that Brazil's Mines and Energy
Ministry said it held talks this month with various investors in
the transmission line and wind sectors to feel out potential
interest in taking over local projects abandoned by Spain's
financially distressed Abengoa SA.
The ministry told Reuters it had met with executives from local
and international energy firms including Spain's Cymimasa and
Elecnor, China State Grid and Brazil's Engevix and Alupar. It also
met with wind investors from Italy's Enel Green Power and local
firm Casa dos Ventos.
The ministry said in an email obtained by Reuters that it was
seeking investors to take over Abengoa's transmission line and
wind farm projects in an effort to avoid delays in delivery of new
energy supplies.
Among other projects, Abengoa had been building an important
transmission line that will link the massive 11,233 megawatt Belo
Monte hydroelectric dam in the lower Amazon state of Para with the
grid, the report notes.
Abengoa estimated that 1.5 gigawatts of wind generation capacity
would be connected to transmission lines it was constructing. The
Spanish company said in a statement it was in constant contact
with local authorities to find a solution, according to Reurers.
The indebted Spanish renewable energy and engineering group
Abengoa declared insolvency on Nov. 25 in Spain, the report
relays.
RIO OIL: Fitch Cuts US$2BB Series 2014-1 Notes Rating to 'BB-'
--------------------------------------------------------------
Fitch Ratings has downgraded the following ratings on Rio Oil
Finance Trust's issuances:
-- US$2 billion series 2014-1 notes to 'BB-' from 'BB+';
-- BRL 2.4 billion series 2014-2 special indebtedness interests
to 'Asf(bra)' from 'AAsf(bra)';
-- US$1.1 billion series 2014-3 notes to 'BB-' from 'BB+'.
Fitch has assigned a Negative Outlook to all of the issuances,
which were on Rating Watch Negative prior to today's downgrades.
The downgrades reflect the continued downturn in oil prices and
its impact on debt service coverage levels; this pressure on
transaction performance is heightened by the potential impact the
waiver conditions approved by bondholders might have on the
transaction's coverage levels in case some of the milestones are
not met within the waiver period. The Negative Outlook reflects
the additional impact lower oil prices may have on future
production levels that would in turn further impact debt service
coverage levels.
The ratings on all series are ultimately supported by the
structural features in place including the debt service coverage
ratio (DSCR) triggers and six-month reserve account. Fitch
believes these structural features ultimately support the
transaction ratings at the revised levels under the current
depressed oil price assumption. The ratings address timely payment
of interest and principal on a quarterly basis.
The issuances are backed by the royalty flows owed by oil
concessionaires, predominantly operated by Petroleo Brasileiro
S.A. (Petrobras), to the government of the state of Rio de Janeiro
(RJS), who assigned 100% of the flows to RioPrevidencia (RP), the
state's pension fund.
KEY RATING DRIVERS
Transaction Performance Impacted by Depressed Oil Prices: To
reflect continued expected market weakness in the near term, Fitch
has revised its base case price deck downward for Brent crude oil
to $45 in 2016 and $55 in 2017. This new price expectation results
in lower-than-expected coverage ratios, minimizing the
transaction's ability to absorb further stress levels. The actual
DSCR reported for the fourth quarter of 2015 (4Q15) was 2.7x and
the annualized DSCR was 3.2x. These numbers are expected to
further decrease as senior tranches start amortizing in 2016 and
government debt obligations remain substantial until 2018.
Future Expected Production Increases at Risk: While short-term
production expectations have not changed; Wood Mackenzie updated
production expectations which reflect Petrobras' announced
investment plan released on June 29, 2015, incorporate on average
a 6% decrease in production levels for each year of the original
projections. However, continued depressed oil prices have
translated into additional capital expenditure cuts by Petrobras.
On Jan. 12, 2016, a new cut of USD32 billion in Petrobras'
investment plan was announced, which could result in further
reductions in production levels after 2017. Given that the
transaction relies on growth in royalty flows, production levels
significantly below expectations may negatively affect the rating
of the existing series.
Potential Increase in Political Risk: Retention of part of the
excess cash flows in combination with the State's weaker credit
profile and heavier debt service decrease the sponsor's incentive
to support the transaction and increase the exposure of the
transaction to political risk.
RATING SENSITIVITIES
The ratings are capped by the credit quality of Petrobras, as the
main obligor of the flows backing this transaction, and Brazil's
sovereign and country ceiling ratings.
Additionally, the ratings are sensitive to the rating of Banco do
Brasil as a direct counterparty to the transaction.
The transaction is exposed to price and volume risk related to oil
production. Further declines in prices or production levels
significantly below expectations may trigger downgrades.
Although the transaction rating is not directly linked to the
originator's rating, in case of considerable downgrade of the
state's rating, the rating of the transaction may be impacted
negatively.
Additionally, failure to meet the milestones contemplated in the
waiver might lead to a negative rating action on the transaction
ratings.
==========================
C A Y M A N I S L A N D S
==========================
BLACKSTONE PARTNERS: Commences Liquidation Proceedings
------------------------------------------------------
On Nov. 25, 2015, the sole shareholder of Blackstone Partners
Offshore Feeder Fund 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:
Sean Flynn
Walkers
190 Elgin Avenue, George Town
Grand Cayman KY1-9001
Cayman Islands
Telephone: (345) 914 6365
COMOROS LTD: Creditors' First Meeting Set for Jan. 26
-----------------------------------------------------
The creditors of Comoros Ltd. will hold their first meeting on
Jan. 26, 2016, at 10:00 a.m., at the offices of FTI Consulting
(BVI) Limited, 5th Floor of Ritter House, Wickhams Cay II, P.O.
Box 993 Road Town, Tortola, British Virgin Islands.
Matthew Richardson is the company's liquidator.
COMOROS 2: Creditors' First Meeting Set for Jan. 26
---------------------------------------------------
The creditors of Comoros 2 Ltd. will hold their first meeting on
Jan. 26, 2016, at 11:30 a.m., at the offices of FTI Consulting
(BVI) Limited, 5th Floor of Ritter House, Wickhams Cay II, P.O.
Box 993 Road Town, Tortola, British Virgin Islands.
Matthew Richardson is the company's liquidator.
CRYSTAL FUND: Commences Liquidation Proceedings
-----------------------------------------------
On Nov. 26, 2015, the sole shareholder of Crystal Fund, 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:
Walkers Liquidations Limited
Cayman Corporate Centre
27 Hospital Road, George Town
Grand Cayman KY1-9008
Cayman Islands
Telephone: +1 (345) 949 0100
DELLACAMERA DISTRESSED: Commences Liquidation Proceedings
---------------------------------------------------------
At an extraordinary meeting held on Nov. 20, 2015, the members of
Dellacamera Distressed Realty Ltd. resolved to voluntarily
liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Jan. 7, 2016, will be included in the company's dividend
distribution.
The company's liquidator is:
Nicola Cowan
DMS Corporate Services Ltd.
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
DELLACAMERA DISTRESSED MASTER: Commences Liquidation Proceedings
----------------------------------------------------------------
At an extraordinary meeting held on Nov. 20, 2015, the members of
Dellacamera Distressed Realty Master Fund Ltd. resolved to
voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Jan. 7, 2016, will be included in the company's dividend
distribution.
The company's liquidator is:
Nicola Cowan
DMS Corporate Services Ltd.
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
ELEDONE SPC: Placed Under Voluntary Wind-Up
-------------------------------------------
On Nov. 18, 2015, the sole shareholder of Eledone SPC resolved to
voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Dec. 28, 2015, will be included in the company's dividend
distribution.
The company's liquidator is:
Alexander Shaik
Suite 1008 ICBC Tower
3 Garden Road, Central
Hong Kong
Telephone: (852) 2536 4567
Facsimile: (852) 2147 2813
JPMP ASIA: Commences Liquidation Proceedings
--------------------------------------------
On Nov. 25, 2015, the shareholder of JPMP Asia Fund Holdings
Company passed a resolution to 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:
David Martin Griffin
FTI Consulting (Cayman) Ltd.
Suite 3212, 53 Market Street
Camana Bay
P.O. Box 30613 Grand Cayman KY1 - 1203
Cayman Islands
LIBERTYVIEW ALTERNATIVE: Commences Liquidation Proceedings
----------------------------------------------------------
At an extraordinary meeting held on Nov. 23, 2015, the members of
Libertyview Alternative Blend Fund, Ltd. resolved to voluntarily
liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Jan. 7, 2016, will be included in the company's dividend
distribution.
The company's liquidator is:
Nicola Cowan
DMS Corporate Services Ltd.
Telephone: (345) 946 7665
Facsimile: (345) 949 2877
dms House, 2nd Floor
P.O. Box 1344 Grand Cayman KY1-1108
Cayman Islands
LIPIZZANER LDC: Placed Under Voluntary Wind-Up
----------------------------------------------
On Nov. 27, 2015, the shareholders of Lipizzaner LDC 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:
Michael Palmer
c/o Ben Gillooly
89 Nexus Way, Camana Bay
Grand Cayman KY1-9009
Cayman Islands
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949-9877
LIQUIDATION OPPORTUNITIES: Placed Under Voluntary Wind-Up
---------------------------------------------------------
On Nov. 27, 2015, the sole shareholder of Liquidation
Opportunities Fund (Cayman), 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:
Alden Global Capital LLC
c/o Tim Cone
Ogier
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949-9877
LIQUIDATION OPPORTUNITIES MASTER: Placed Under Voluntary Wind-Up
----------------------------------------------------------------
On Nov. 27, 2015, the sole shareholder of Liquidation
Opportunities Master GP, 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:
Alden Global Capital LLC
c/o Tim Cone
Ogier
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949-9877
LISTON FUNDING: Commences Liquidation Proceedings
-------------------------------------------------
On Nov. 26, 2015, the sole shareholder of Liston Funding 2009-2
Ltd. resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Jan. 6, 2016, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
c/o Susan Craig/Jennifer Chailler
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
Telephone: (345) 943-3100
ORYX STRUCTURED: Commences Liquidation Proceedings
--------------------------------------------------
On Nov. 26, 2015, the sole shareholder of Oryx Structured Notes
Limited resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Jan. 6, 2016, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
c/o Susan Craig/Jennifer Chailler
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
Telephone: (345) 943-3100
RSL COMMUNICATIONS: Creditors' Proofs of Debt Due Feb. 16
---------------------------------------------------------
The creditors of RSL Communications, Ltd. are required to file
their proofs of debt by Feb. 16, 2016, to be included in the
company's dividend distribution. The company intends to declare
the fourth and final dividend to its unsecured creditors.
The first, second and third interim dividends were paid in April
2002, May 2003 and Jan. 2011.
The company's liquidators are:
Garth Calow
Michael JA Jervis
PricewaterhouseCoopers Advisory Limited
Dorchester House
7 Church Street, Hamilton HM 11
Bermuda
UBS EQUITY: Commences Liquidation Proceedings
---------------------------------------------
On Nov. 25, 2015, the shareholder of UBS Equity Financials
Long/Short Fund 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:
UBS Asset Management (Americas) Inc.
c/o One North Wacker Drive
Chicago IL 60606
USA
Telephone: +1 (345) 914 6365
UBS EQUITY TECHNOLOGY: Commences Liquidation Proceedings
--------------------------------------------------------
On Nov. 25, 2015, the shareholder of UBS Equity Technology
Long/Short Fund 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:
UBS Asset Management (Americas) Inc.
c/o One North Wacker Drive
Chicago IL 60606
USA
Telephone: +1 (345) 914 6365
VECTOR OPPORTUNITIES: Commences Liquidation Proceedings
-------------------------------------------------------
On Nov. 26, 2015, the shareholder of Vector Opportunities Fund
resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Dec. 29, 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
=========
C H I L E
=========
GEOPARK LATIN AMERICA: S&P Lowers Rating to 'B-'; Outlook Stable
----------------------------------------------------------------
Standard & Poor's Ratings Services said it lowered its ratings
GeoPark Latin America Limited Agencia en Chile (GPLAC) to 'B-'
from 'B'. The outlook is stable.
The downgrade reflects S&P's expectation that, in the next 12
months, GeoPark's credit metrics will be weaker than S&P
previously anticipated because of lower hydrocarbon price
assumptions. Although GeoPark adapted quickly to the new pricing
scenario, preserving its growth strategy while implementing cost
reduction initiatives (for instance, ongoing adjustments to
production, administrative, and geological costs and the temporary
shut-down of certain oil fields), S&P believes those measures
would not be sufficient to offset pressure from weaker commodity
prices.
GeoPark Limited (GeoPark) controls GPLAC and has operations in
Chile, Colombia, Brazil, Peru and Argentina. S&P bases its
analysis of GPLAC on its parent's consolidated figures as it
believes both entities constitute a single economic entity with a
single default risk. In S&P's view, GPLAC is a "core" subsidiary
of GeoPark because it is integral to the group's strategy,
generating more than 90% of consolidated EBITDA in the last 12
months ended on Sept. 30, 2015, and representing 75% of net proved
developed reserves as of Dec. 31, 2014. Moreover, S&P believes
the group will financially support GPLAC, as evidenced by the
guarantee on GPLAC's $300 million bond. Lastly, the subsidiary is
highly unlikely to be sold, operates in the same line of business
as the parent, and is closely linked to the group's reputation as
it shares the same name.
The stable outlook incorporates GeoPark's manageable debt maturity
profile and S&P's expectations that the company will be able to
meet its financial and operating needs during the next 12 months.
S&P will downgrade GeoPark's ratings in the next 12 months if S&P
perceives an increased vulnerability to nonpayment, making GeoPark
dependant on favorable business, operating, and financial
conditions to meet its financial commitments. That might happen,
for instance, if the oil price continues below $30/ bbl in 2016,
while its recovery in 2017 is slower than anticipated.
S&P sees an upgrade as unlikely in the next 12 months. Any
positive rating action will be related to an improvement in the
company's financial risk profile. That might happen, for
instance, if the company's FFO to debt improves to 20%, on a
sustained basis, which would be consistent with scenarios of oil
prices above $50/ bbl in the medium term. S&P views a positive
rating action related to improvements in its business risk as
unlikely in the short term; they would heavily depend on GeoPark
reaching a materially higher scale, with a proved reserves base
higher that 50 million boe and production levels of 30,000 boepd.
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Fitch Assigns 'B+' Rating to USD1BB Bond
------------------------------------------------------------
Fitch Ratings has assigned a 'B+' rating to the Dominican
Republic's USD1.0 billion bond maturing 2026. The bond has a
coupon of 6.875%.
The proceeds are to partially finance the 2016 budget of the
government.
KEY RATING DRIVERS
The bond rating is in line with the Dominican Republic's long-term
foreign currency Issuer Default Rating (IDR) of 'B+'.
RATING SENSITIVITIES
The bond rating would be sensitive to any changes in the Dominican
Republic's long-term foreign currency IDR.
On Dec. 1, 2015, Fitch affirmed the Dominican Republic's long-term
foreign currency IDR at 'B+' and revised the Outlook to Positive.
=================
G U A T E M A L A
=================
BANCO DE DESARROLLO: Fitch Affirms 'BB' IDR; Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed Banco de Desarrollo Rural S.A.'s
(Banrural) Issuer Default Rating at 'BB', short-term IDR at 'B',
and Viability Rating (VR) at 'bb'. Banrural's National Ratings
were also affirmed. The Rating Outlook is Stable.
KEY RATING DRIVERS
VR, IDRS, NATIONAL RATINGS
The bank's VR drives its IDR and National Ratings. The operating
environment has a high influence on the bank's performance. The
VR is also closely linked to the sovereign, as Banrural maintains
a moderate exposure to public sector deposits (24.5% of total
deposits), and significant concentration in government bonds. The
Guatemalan government also holds a 17.2% stake in Banrural. The
bank's VR also considers its solid credit quality metrics, high
profitability and good capitalization.
The Stable Outlook reflects Fitch's expectation of no material
changes in the bank's overall financial profile over the rating
horizon.
Banrural's good underwriting standards, effective incentive
schemes, and timely restructuring of loans that may present
payment difficulties support the bank's consistent asset quality
and controlled credit costs, and signal a moderate risk appetite.
Banrural's asset quality is adequate and comparable with
corporate-oriented peers; delinquency levels are consistently
below 1% and reserve coverage is ample. The investment portfolio
is concentrated in sovereign risk, and loan book composition and
growth have been stable and consistent with its strategy. The
loan portfolio maintains a strong focus on SMEs and consumer loans
in rural areas.
Banrural's profitability consistently exceeds that of the
Guatemalan market average, buttressed by its ample net interest
margin. Banrural's high margins in the SME and consumer sector in
rural areas compensate for moderate income diversification and
relatively weak efficiency ratios. This solid capital generation
capacity and moderate dividend payments underpin its good capital
levels.
Banrural's funding structure, based on a diversified, low-cost
deposit base, is generally stable. Liquidity coverage is adequate
although term mismatches are present as a result of the high
proportion of savings deposits. However, the bank's liquidity and
deposit stability came under stress following a rumor disseminated
in May 2015 that prompted significant deposit withdrawals at rural
branches. Banrural successfully managed the situation and made
further enhancements to its policies, including its liquidity
contingency plan, in order to avoid this risk in the future.
In Fitch's view, Banrural's importance within the banking system
reflects its large size in the local market, wide geographic
coverage, and focus on SME and individual consumer deposits and
loans. Banrural's franchise is strong in its core market. It is
the second largest bank in Guatemala in terms of assets, with a
market share of 19.8% of total assets and 21.5% of total deposits
as of December 2015. The bank has a relative competitive
advantage and pricing power in its main segment, strengthened by
its presence in the entire territory and its unique ability to
address the needs of a rural population.
KEY RATING DRIVERS - SUPPORT RATING AND SUPPORT RATING FLOOR
Banrural's support rating (SR) of '3' reflects Fitch's opinion
that there is a moderate probability of support from the state,
given Banrural's systemic importance in the banking system. This
probability is limited by Guatemala's sovereign rating of
'BB'/Outlook Stable. The bank's Support Rating Floor (SRF) is one
notch below the sovereign rating at 'BB-'. The bank's SRF
reflects the moderate financial flexibility of the government to
provide support to systemically important banks in the country and
the significant presence of foreign currency funding.
RATING SENSITIVITIES
IDRS, NATIONAL RATINGS
Banrural's IDRs and VR are at the same level as Guatemala's
sovereign rating. Given the operating environment's strong
influence on Banrural's VR as well as its concentrations with the
government, changes in the sovereign's ratings may result in a
similar action on Banrural's ratings. Banrural's National Ratings
reflect the bank's relative strength in the local market.
Ratings would be downgraded in the unlikely scenario of a sharp
decline in capitalization (below 10%), and a period of sustained
low earnings (operating ROAA close to 1%). These changes may
result in a VR downgrade which would also imply a downgrade of its
IDR.
SUPPORT RATING AND SUPPORT RATING FLOOR
The SR & SRF are potentially sensitive to changes in Fitch's
assessment of the sovereign's ability and/or propensity to support
Banrural.
Fitch has affirmed these:
Banco de Desarrollo Rural, S.A.
-- Foreign Currency Long-term IDR at 'BB'; Outlook Stable;
-- Foreign Currency Short-term IDR at 'B';
-- Local currency long-term IDR at 'BB'; Outlook Stable;
-- Local currency short-term IDR at 'B';
-- Viability Rating at 'bb';
-- Support Rating at '3';
-- Support Rating Floor at 'BB-';
-- National long-term rating at 'AA+(gtm)'; Outlook Stable;
-- National short-term rating at 'F1+(gtm)'.
======================
P U E R T O R I C O
======================
SPANISH BROADCASTING: Bluestone Fin'l Owns 8% of Class A Shares
---------------------------------------------------------------
In a Schedule 13D filed with the Securities and Exchange
Commission, Bluestone Financial Ltd. disclosed that as of Jan. 19,
2016, it beneficially owns 340,618 shares of Class A Common Stock
of Spanish Broadcasting Systems, Inc., representing 8.174 percent
of the shares outstanding. A copy of the regulatory filing is
available for free at http://is.gd/8OsPar
About Spanish Broadcasting
Headquartered in Coconut Grove, Florida, Spanish Broadcasting
operates 21 radio stations targeting the Hispanic audience. The
Company also owns and operates Mega TV, a television operation
with over-the-air, cable and satellite distribution and affiliates
throughout the U.S. and Puerto Rico. Its revenue for the twelve
months ended Sept. 30, 2010, was approximately $140 million.
Spanish Broadcasting reported a net loss of $20.0 million on $146
million of net revenue for the year ended Dec. 31, 2014, compared
with a net loss of $88.6 million on $154 million of net revenue in
2013.
As of Sept. 30, 2015, the Company had $457 million in total
assets, $551 million in total liabilities and a total
stockholders' deficit of $94 million.
* * *
In November 2010, Moody's Investors Service upgraded the corporate
family and probability of default ratings for Spanish Broadcasting
System, Inc., to 'Caa1' from 'Caa3' based on improved free cash
flow prospects due to better than anticipated cost cutting and the
expiration of an unprofitable interest rate swap agreement.
Moody's said Spanish Broadcasting's 'Caa1' corporate family rating
incorporates its weak capital structure, operational pressure in
the still cyclically weak economic climate, generally narrow
growth prospects (though Spanish language is the strongest growth
prospect) given the maturity and competitive pressures in the
radio industry, and the June 2012 maturity of its term loan
magnify this challenge.
In July 2010, Standard & Poor's Ratings Services raised its
corporate credit rating on Miami, Fla.-based Spanish Broadcasting
System Inc. to 'B-' from 'CCC+', based on continued improvement in
the company's liquidity position. The rating outlook is stable.
"The rating action reflects S&P's expectation that, despite very
high leverage, SBS will have adequate liquidity over the
intermediate term to meet debt maturities, potential swap
settlements, and operating needs until its term loan matures on
June 11, 2012," said Standard & Poor's credit analyst Michael
Altberg.
PUERTO RICO: Treasury Sec. Prods Congress on Bankruptcy
-------------------------------------------------------
Kasia Klimasinska and Michelle Kaske at Bloomberg News report that
Treasury Secretary Jacob J. Lew said that Congress needs to act
without delay to help Puerto Rico deal with a worsening fiscal
crisis, as he visited the island for the first time to witness the
impact on the local economy.
"Only Congress can enact the legislative measures necessary for
Puerto Rico to resolve this problem," Mr. Lew said at a press
conference in San Juan, notes the report. "The people of Puerto
Rico are sacrificing, but unless that sacrifice is shared by
creditors in an orderly restructuring, there is no path out of
insolvency and back to growth.
Mr. Lew reiterated the Obama administration call for bankruptcy
powers for Puerto Rico, paired with independent fiscal oversight,
additional health care funding and employment incentives, the
report notes. Republicans say they need more information about
the island's financial situation before they draft a bill and some
investors oppose granting Puerto Rico restructuring powers, saying
that would change the rules under which the debt was issued, the
report relays.
"Without congressional action, Puerto Rico will face a long and
difficult recovery that could have harmful consequences for the
American citizens who call the island home," the report quoted Mr.
Lew as saying. "That is why we have called on Congress to act
without delay."
House Speaker Paul Ryan has called for a solution for Puerto Rico
by the end of this quarter and Lew described that deadline urgent
and meaningful, the report notes. Puerto Rico's Government
Development Bank owes investors $422 million in May, the report
relays.
The commonwealth and its agencies owe $2 billion on July 1, on the
heels of an anticipated $923 million negative cash balance in
June, the report notes.
Congressional Republicans are calling for a federal control board.
If one is enacted, it must respect Puerto Rico's rights and has to
be paired with access to bankruptcy, Puerto Rico Governor
Alejandro Garcia Padilla said at a separate press conference
following a meeting with Mr. Lew, the report notes.
The report discloses that Mr. Lew is meeting with Puerto Rico
officials as the commonwealth says its fiscal crisis is worsening.
The island now estimates it will be $16.06 billion short in paying
principal and interest during the next five years, up from a $14
billion projection in September, according to a revised fiscal and
economic growth plan released, the report adds.
As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2015, Standard & Poor's Ratings Services maintained its
'CC' long-term and underlying ratings (SPURs) on Puerto Rico
Electric Power Authority's (PREPA) electric revenue bonds.
However, the ratings remain on CreditWatch, where they were
originally placed with negative implications on June 18, 2014.
As of June 30, 2015, PREPA had about $8.44 billion of long-term
debt outstanding, and an additional $730 million due to
noteholders.
PUERTO RICO ELECTRIC: Deal at Risk as Lawmakers Hit Deadline
------------------------------------------------------------
Michelle Kaske at Bloomberg News reports that Puerto Rico's
electricity deal is at risk of falling apart as lawmakers weigh
legislation that would leave the door open for a future bankruptcy
filing.
Commonwealth lawmakers faced a deadline Jan. 22 to approve
legislation that would enable the Puerto Rico Electric Power
Authority, called Prepa, to restructure nearly $9 billion of debt
unless creditors including hedge funds, mutual funds and bond
insurance companies agree to extend the pact, according to
Bloomberg News.
Legislative approval is the final hurdle to execute the debt-
restructuring plan after the various creditors reached a deal in
December after 16 months of negotiations, Bloomberg News notes.
Bloomberg News says that the Prepa deal involves investors
exchanging debt for new securities at a lower face value and sold
by a new entity that wouldn't have access to bankruptcy or any
local debtrestructuring law even if commonwealth agencies were to
gain that provision in the future. Lawmakers are considering
changing that limitation and instead allowing the new issuer to
have the ability to restructure its debt, Senator Ramon Luis
Nieves, who chairs the Senate's energy committee and is working on
the bill, said in a telephone interview from San Juan, Bloomberg
News notes.
The U.S. Supreme Court will consider reinstating a Puerto Rico law
that would let some island utilities restructure their
obligations, Bloomberg News relays. The high court will decide by
June. Investors such as OppenheimerFunds Inc., Franklin Advisers
Inc. and BlueMountain Capital Management LLC filed suit against
the local debt-restructuring bill and have also signed on to
Prepa's debt plan, Bloomberg News notes.
If island lawmakers approve a Prepa deal that creates an issuer
prohibited from using bankruptcy, the Supreme Court may rule that
Puerto Rico entities don't need access to debt restructuring, Mr.
Nieves said, Bloomberg News notes.
"We have to make sure that this legislation doesn't hurt our
chances with the Supreme Court," Bloomberg News quoted Mr. Nieves
as saying. "We have to make sure that this bill isn't an obstacle
to the economic recovery of Puerto Rico," he added.
The longer commonwealth lawmakers take to approve a Prepa bill,
the more risk that creditors will walk away from the debt
restructuring deal, Bloomberg News notes. Prepa is in constant
communication with the legislature and its different creditor
groups, Javier Quintana Mendez, Prepa's executive director, said
in a statement.
A Prepa bond maturing July 2026 last traded on Jan. 13 at an
average price of 63 cents on the dollar, up from an average 53
cents on Dec. 18, data compiled by Bloomberg show. The average
yield was about 11 percent.
As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2015, Standard & Poor's Ratings Services maintained its
'CC' long-term and underlying ratings (SPURs) on Puerto Rico
Electric Power Authority's (PREPA) electric revenue bonds.
However, the ratings remain on CreditWatch, where they were
originally placed with negative implications on June 18, 2014.
As of June 30, 2015, PREPA had about $8.44 billion of long-term
debt outstanding, and an additional $730 million due to
noteholders.
===============
S U R I N A M E
===============
SURINAME: Approaches IMF to Discuss Possible Financial Support
--------------------------------------------------------------
Mr. Daniel Leigh, the International Monetary Fund's mission Chief
for Suriname, issued the following statement:
"The Surinamese authorities have approached the Fund to discuss
the possibility of IMF financial support for their economic reform
program in response to the sharp fall in international commodity
prices. Several important policies have already been implemented
in the context of this program with a view to strengthening the
level of international reserves and paving the way for the economy
to achieve sustained growth and financial stability.
"Together with our sister organizations-the Caribbean Development
Bank, the Inter-American Development Bank, and the World Bank-we
stand ready to help Suriname meet the economic challenges it is
currently facing.
"At the request of the authorities, an IMF team will visit
Paramaribo in the next few weeks for discussions on Suriname's
reform program and financing needs."
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'.
=================
V E N E Z U E L A
=================
VENEZUELA: Congress Rejects Maduro's Economic Plan
--------------------------------------------------
Anatoly Kurmanaev at The Wall Street Journal reports that
Venezuela's opposition-controlled congress rejected an economic
emergency decree proposed by President Nicolas Maduro to confront
the deepest recession in the country's history, the first time the
body has moved against the government in 17 years of populist
rule.
The opposition legislators said that Mr. Maduro's decree was vague
and was designed to put more power into his hands without
addressing Venezuela's calamitous economy, which the International
Monetary Fund says will contract by 8% this year, according to The
Wall Street Journal.
But, by transferring economic decision-making from congress to the
presidency and declining to even provide lawmakers with minimal
economic data, Mr. Maduro has in recent weeks limited the ability
of congress to enact its own measures to combat the world's
highest inflation, food shortages and an industrial collapse that
economists say is likely to lead to a default later this year, the
report notes.
"We have to change the entire model, tweaking it just won't work,"
the new National Assembly president, Henry Ramos Allup, said in an
interview with the WSJ. "Nicolas Maduro is a prisoner of his own
economic system, he can't change course," Mr. Allup added.
Government-allied lawmakers have accused the opposition of
betraying the nation by not endorsing the presidential decree,
which was presented and would have given Mr. Maduro sweeping
powers over the budget, taxes, property rights and financial
transactions, the report notes.
Mr. Maduro accused the opposition of deepening the economic
crisis, the report notes. "It's very unfortunate that the
National Assembly, and the majority that controls it, is turning
its back on the country at this moment," he said on state
television, the report relays.
The assembly long had the authority to alter the budget and
supervise ministers and the central bank, the report discloses.
But Mr. Maduro has worked methodically to strip the congress of
all economic powers since his ruling United Socialist Party
suffered a crushing defeat in the December midterm congressional
elections, the report says.
Mr. Maduro used the lame-duck legislature to push through 10
economic laws before his opponents took over on Jan. 5. The laws
removed congressional oversight over the central bank and allowed
the president to transfer money to off-budget state funds he
controls instead of having to ask congress for extra resources to
pay salaries and pensions, the report notes.
The president has brushed aside the opposition's calls for reform
and doubled down on the socialist policies of his predecessor,
Hugo Chavez, who led a leftist government here from 1999 until his
death in 2013, the report recalls. Mr. Maduro appointed Luis
Salas, a 39-year-old leftist sociologist who has called inflation
a bourgeois invention, as economic czar, the report notes.
Mr. Salas and other recently appointed government ministers
declined to attend a congressional hearing called by the
opposition to discuss the presidential decree, the report
discloses. Officials in the Maduro administration said that they
wouldn't discuss economic data publicly.
"They know perfectly well that there are things that can't be
explained publicly because they are issues of the state that need
seriousness," Vice President Aristobulo Isturiz said on state
television, surrounded by the ministers who had been called to
appear in congress.
The opposition said the ministers, many of whom have less than a
month of public administration experience, couldn't come up with a
justification of how an oil windfall of more than $1.3 trillion
over the last 17 years morphed into the country's deepest
recession on record, with inflation last year reaching 275%, the
report notes.
"They were terrified of having to say the truth in front of the
cameras," the report quoted Elias Matta, vice president of the
congressional commission charged with ruling on Maduro's economic
decree, as saying. "We're going to a complete collapse with these
policies and they can't even show their faces," Mr. Matta added.
The IMF predicts inflation will skyrocket to 720% this year with
the continuing weakness of oil revenue, which provides almost all
of the country's hard currency, and the government's printing of
money, the report notes.
In an attempt to pacify the critics, Mr. Maduro invited some of
Venezuela's surviving captains of industry, such as telecom
magnate Oswaldo Cisneros and rum maker Alberto Vollmer, to the
Committee for Productive Economy he created, the report discloses.
Mr. Maduro offered them a more lucrative exchange rate for the
dollars that they normally earn through their exports, without
addressing the deeper problems of shortages and price controls,
the report relays.
Three businessmen who were present said the private-sector
representatives haven't been consulted on any specific issues, the
report notes.
"Neither the government nor the opposition are interested in
solving the economic crisis," said Efrain Velazquez, president of
the National Economic Council, an advisory body to Venezuelan
presidents before Mr. Chavez's arrival, the report discloses.
"They will keep trading blame and playing out political battles
until the economic disaster on the street sweeps them aside," Mr.
Velazquez added.
***********
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
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issuers' public debt and equity securities about which we report.
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latest balance sheets publicly available a day prior to
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definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
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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 2016. All rights reserved. ISSN 1529-2746.
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