/raid1/www/Hosts/bankrupt/TCRLA_Public/161005.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, October 5, 2016, Vol. 17, No. 197
Headlines
A R G E N T I N A
CENTRAL PUERTO: Fitch Affirms 'B' LT FC Issuer Default Rating
NEWSAN SA: Moody's Withdraws B3 Corporate Family Rating
* ARGENTINA: Macri, Temer Seek to Make Mercosur More "Flexible"
B E R M U D A
KOSMOS ENERGY: Fitch Affirms 'B' IDR; Outlook Stable
B O L I V I A
SEGUROS Y REASEGUROS: Moody's Affirms 'B3' IFS Rating
B R A Z I L
CENTRAIS EOLICAS: Moody's Assigns Ba2 Rating on BRL35MM Debentures
C A Y M A N I S L A N D S
AERIS CAPITAL: Placed Under Voluntary Wind-Up
FRM GLOBAL: Creditors' Proofs of Debt Due Oct. 25
FRM GLOBAL MASTER: Creditors' Proofs of Debt Due Oct. 25
FRM PHOENIX: Creditors' Proofs of Debt Due Oct. 25
GLG ASIAN: Creditors' Proofs of Debt Due Oct. 25
GLG ORE: Creditors' Proofs of Debt Due Oct. 25
GLG ORE HUB: Creditors' Proofs of Debt Due Oct. 25
LOIRE LIMITED: Creditors' Proofs of Debt Due Oct. 25
MAN RMF: Creditors' Proofs of Debt Due Oct. 25
PENINSULA LIFE: Creditors' Meeting Set for Oct. 10
RMF ENHANCED: Creditors' Proofs of Debt Due Oct. 25
RMF NORDIC: Creditors' Proofs of Debt Due Oct. 25
SUMMIT OFFSHORE: Creditors' Proofs of Debt Due Oct. 31
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: Customs to Charge a Sweeping 9% Tax in 2017
J A M A I C A
JAMAICA: Saved From Full Impact of Hurricane Matthew
JAMAICA: Customs Records Loss of More Than J$500 Million
P E R U
UNION ANDINA: S&P Revises Outlook to Neg. & Affirms 'BB+' CCR
T R I N I D A D & T O B A G O
* TRINIDAD & TOBAGO: Economists Not Impressed With Budget
X X X X X X X X X
LATAM: Corporate Default Rates Rise to 6-Yr. High, Moody's Says
- - - - -
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A R G E N T I N A
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CENTRAL PUERTO: Fitch Affirms 'B' LT FC Issuer Default Rating
-------------------------------------------------------------
Fitch Ratings has affirmed Central Puerto S.A.'s (CPSA) Long-Term
Foreign Currency Issuer Default Rating (IDR) at 'B' and upgraded
its Long-Term Local Currency IDR to 'BB-' from 'B'. Fitch has
concurrently withdrawn the 'B/RR4' long-term rating for the
company's USD100 million notes due 2017 as these have been called
and paid in full. The Rating Outlook is Stable.
KEY RATING DRIVERS
CPSA's foreign currency rating is constrained by the 'B' country
ceiling of the Republic of Argentina, which limits the foreign
currency rating of most Argentine corporates. Country ceilings are
designed to reflect the risks associated with sovereigns placing
restrictions upon private sector corporates that may prevent them
from converting local currency to any foreign currency under a
stress scenario and/or may not allow the transfer of foreign
currency abroad to service foreign currency debt obligations.
The upgrade of CPSA's local currency rating reflects: the
industry's improving regulatory risk; the company's robust cash
flow generation potential supported by its dominant market
position and diversified portfolio of assets; expected increase in
dollar linked cash inflows from past due receivables as well as
the company's conservative capital structure.
Regulatory Risk Remains High:
CPSA's ratings reflect high regulatory risk given strong
government influence in both the Electric/Utilities and Energy
sectors. CPSA operates in highly strategic sectors where the
government both has a role as the price/tariff regulator and also
controls subsidies for industry players. In the electricity
sector, CPSA depends on payments from government agency Compania
Administradora de Mercado Mayorista Electrico S.A. (CAMMESA).
Payments from CAMMESA can be volatile given that it depends on the
national government for funds to make the payments, and Argentina
is currently suffering through a significant economic slowdown. In
2015, CAMMESA received approximately USD10 billion in funds from
the Argentine treasury, which was an increase from the USD8.7
billion injection in 2014.
High Counterparty Risk:
CPSA's financial profile is negatively affected by the weak credit
quality of CAMMESA as its main counterparty, since the agency is
highly vulnerable to Argentina's current credit situation.
Electric companies in Argentina are not only exposed to delays in
the payment of CAMMESA but also to risks in fuel supply, as the
government's agency centralizes the country's fuel imports, and
therefore the company could face serious difficulties if CAMMESA
changes its role. This is partly mitigated by the strategic
position CPSA has to provide electricity to the Buenos Aires city,
Mendoza City and three of YPF's refineries.
Strong Competitive Position:
CPSA owns a portfolio of well diversified generation assets in
terms of operational technologies and geographical presence,
allowing the company to mitigate risks associated with machine
stops and the exposure to hydrological risk faced by its
hydroelectric plant. This, combined with a significant generation
capacity of close to 4 GW and a market share of 15% in the
Argentine matrix as the largest local private generator in the
country, gives CPSA a significant competitive advantage compared
to other players of smaller scale. Additionally, the geographic
location of CPSA's generation plants provides a relevant advantage
in terms of access to fuel and nearness to the capital city and
some YPF's refineries.
Solid Metrics:
As of June 2016, CPSA financial metrics were strong with a limited
leverage and good coverage figures. Debt to EBITDA, including debt
with CAMMESA, stood at 1.3x, while EBITDA/Interest expenses was
8.5x. Net of the debt with CAMMESA, leverage ratio stands at 0.4x.
Fitch expects leverage to remain below 3.0x level in the short to
medium term, although it might temporarily surpass this number as
the company funds a portion of its expansion plan with debt. The
company's future capital structure and cash flow generation hinges
on tariff increases and its ability to win contracts for new
capacity.
KEY ASSUMPTIONS
Fitch's key assumptions within the rating case for CPSA include:
-- CPSA increases installed capacity by approximately 550MW
over the rating horizon;
-- The company receives payments for past-due receivables from
CAMMESA on annual instalments that average approximately
USD68 million per year;
-- Electricity prices increase progressively to a level more
consistent with international peers;
-- Leverage stays below 3.0x in the long term.
RATING SENSITIVITIES
An upgrade to Argentina's ratings could result in a positive
rating action.
CPSA's ratings could be negatively affected by a combination of
the following: a downgrade of the Republic of Argentina's
sovereign ratings, economic deterioration that affects CPSA
ability to convert and transfer foreign exchange; given high
dependence on the subsidies by CAMMESA from the Treasury, any
further weakening of Argentina's fiscal accounts could have a
negative impact on the company's collections/cash flow; a
significant deterioration of credit metrics.
LIQUIDITY
Solid Liquidity: As of June 2016, CPSA's total debt reached USD183
million, more than half of which was with CAMMESA. As of June
2016, the company reported cash and equivalents totalling USD134
million, versus a short-term debt of USD123 million, giving CPSA a
good liquidity profiles. A portion of CPSA's cash and equivalent
as of June 2016 was invested in diversified high-yield fixed
income funds, which Fitch's discounts by 60% when calculating
readily available cash. As a result of this, the company's
estimated readily available liquidity amounts to approximately
USD60 million. Going forward, the company's liquidity will depend
on its ability to generate and collect revenues from CAMMESA as
the company will likely use existing liquidity to pay dividends in
2016.
FULL LIST OF RATING ACTIONS
Fitch has taken the following rating actions:
Central Puerto S.A.
-- Long-term Foreign Currency IDR affirmed at 'B'; Outlook
Stable;
-- Long-term Local Currency IDR upgraded to 'BB-' from 'B';
Outlook Stable;
-- Long-term senior unsecured notes rating of 'B/RR4'
withdrawn.
NEWSAN SA: Moody's Withdraws B3 Corporate Family Rating
-------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo S.A. has
withdrawn Newsan S.A.'s B3/Baa1.ar corporate family rating and
senior unsecured bank credit facility rating, for its own business
reasons.
These ratings were withdrawn:
-- Corporate Family Rating: B3/Baa1.ar
-- Senior unsecured bank credit facility: B3/Baa1.ar
RATINGS RATIONALE
Moody's has withdrawn the rating for its own business reasons.
Headquartered in Buenos Aires, Argentina, Newsan S.A. is one of
the leading manufacturers of digital consumer electronic products,
components and audio and home appliances, with a widely known
brand name in the local retail market. For the last twelve months
ended on June 30, 2016, total revenues amounted to ARS17.1 billion
(approximately USD1.5 billion), of which 18.5% derive from exports
of its food activities (mainly prawn, frozen hake and squid).
Newsan is 100% family-owned company.
* ARGENTINA: Macri, Temer Seek to Make Mercosur More "Flexible"
---------------------------------------------------------------
EFE News reports that Argentine President Mauricio Macri and his
Brazilian counterpart, Michel Temer, agreed on the need to
strengthen the Mercosur trade bloc and to make its rules more
"flexible" to "give a certain autonomy to the (member) states in
their international relations."
The pair held an official meeting in Buenos Aires, after which
they gave a press conference at which they remarked on their two
countries' stances vis-a-vis the present and future of the trade
bloc, which also includes Uruguay, Paraguay and Venezuela,
according to EFE News.
After noting the "historic ties" linking his country with
Argentina and the "similarity of positions" with the Mr. Macri
government, Mr. Temer emphasized the need to work together to
"strengthen Mercosur" and make its rules more flexible to give
countries more international autonomy, the report notes.
"That's the challenge, to believe in what we can do and build if
we integrate ourselves. It's conquering fears. I think that from
1991 -- when the bloc was founded -- up to now, we've made much
progress, at other times we've moved backwards . . . .. But now we
see that the world has an enormous attraction to Mercosur," said
Mr. Macri, the report relays.
The Argentine leader noted that the pair had exchanged offers with
the European Union "to start down a road that will take many
years," the report discloses.
"There are many countries and regions that are asking us if we
really have free trade treaties and trade more. On that road,
clearly we have to prepare ourselves," Mr. Macri added,
emphasizing the need to protect jobs in each country but look for
"conditions" under which to create new ones, since the current
number of jobs "is not enough," the report says.
Mr. Macri said that Argentina, Brazil, Uruguay and Paraguay have a
"long road" behind them of building "unity" and of "shared
learning" that must have "better frameworks" for progress for
their people as its final result, the report notes.
"We can work together to strengthen Mercosur as a South American
institution," said Mr. Temer, the report adds.
* * *
On April 19, 2016, the Troubled Company Reporter-Latin America
reported that Moody's Investors Service upgraded on April 15,
2016, Argentina's government bond rating to B3 from Caa1, with the
outlook changed to stable from positive. The key drivers for the
upgrade are (i) Moody's expectation that Argentina will settle
holdout creditor claims which will result in a lifting of court
injunctions and clear the way for Argentina to access
international capital markets, as well as the likelihood that
Argentina will make payments to restructured bondholders increased
significantly following an April 13, US circuit court ruling in
favor of Argentina, and (ii) the economic policy improvements
since Mauricio Macri's administration took office last December.
The new government lifted capital controls and allowed the peso to
float more freely, reduced energy and transportation subsidies and
has begun to address longstanding macroeconomic imbalances.
As previously reported by the TCR-LA, Argentina defaulted on some
of its debt late July 30, 2014, 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.
On March 30, 2016, after more than 12 hours of debate in the
Senate, Argentina's Congress passed a bill that will allow the
government to repay holders of debt that the South American
country defaulted on in 2001, including a group of litigating
hedge funds that won judgments in a New York court. The bill
passed by a vote of 54-16.
On March 24, 2016, Fitch Ratings upgraded Argentina's Long-
term local-currency Issuer Default Rating (LT LC IDR) to 'B' from
'CCC', with a Stable Outlook. Fitch has affirmed Argentina's Long-
term foreign-currency (FC) IDR at 'RD' and the short-term FC IDR
at 'RD'. In addition, Fitch has upgraded the Country Ceiling to
'B' from 'CCC'.
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B E R M U D A
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KOSMOS ENERGY: Fitch Affirms 'B' IDR; Outlook Stable
----------------------------------------------------
Fitch Ratings has affirmed Kosmos Energy Ltd.'s Long-Term Issuer
Default Rating at 'B'. Its senior secured notes have been
affirmed at 'B' with a Recovery Rating of 'RR4'. All ratings have
been removed from Rating Watch Negative (RWN). The Outlook is
Stable.
The affirmation follows the start-up of TEN, Kosmos's second large
producing asset, in August 2016, and progress made by Kosmos and
its partners in rectifying the damage to the floating production,
storage and offloading vessel (FPSO) at the Jubilee field in
Ghana.
Fitch expects Kosmos' leverage to increase on low oil prices and
high capex in 2016-17, and in some periods funds from operations
(FFO) adjusted net leverage to temporarily exceed our negative
rating action guidance of 3.5x. However, this is mitigated by
Kosmos' strong hedging discipline, sound liquidity, and a relaxed
debt maturity profile with repayments starting only in 2019.
Kosmos is a small but growing oil and gas exploration and
production (E&P) company focused on the offshore Atlantic margin.
It has interests in two offshore producing assets in Ghana
(B/Negative), Jubilee and TEN. Kosmos' net production should rise
above 30mbpd by 2018 from 23mbpd in 2015 on the TEN start-up in
August 2016 and successful resolution of the FPSO turret bearing
issue at the Jubilee field. In 2015 Kosmos generated USD510m in
EBITDAX (EBITDA before exploration expenses).
KEY RATING DRIVERS
Jubilee Production Resumed
In February 2016 Kosmos and its partners announced a potential
problem with the FPSO at Jubilee. The production from Jubilee,
Kosmos's only producing field at that time, was suspended from
March 20, to May 3, 2016, as the vessel's turret bearing was
damaged. Production has resumed through the use of a dynamically-
positioned shuttle tanker and a storage tanker as a short-term
solution.
As a long term solution, Kosmos and its partners have decided to
convert the vessel to a permanently spread moored facility, with
offtake through a new deepwater offloading buoy. This solution
will be implemented in several phases over 2016-18 and should
involve short periods of production interruptions.
We understand from management the risks associated with the vessel
conversion are manageable and expect Kosmos to be largely
reimbursed by its insurers for additional capex and opex, as well
as lost production.
TEN Improves Business Profile
The TEN project brought on stream in August 2016 is an important
milestone for Kosmos as it has improved the company's scale of
operations and asset diversification. TEN is located in close
proximity to the Jubilee field, and a separate FPSO is used to
produce from the field. The project should gradually ramp up to
the full capacity of 80mbpd by end-2016 (net to Kosmos -
13.6mbpd).
The TEN start-up should offset lower production at the company's
Jubilee field, as well as potential risks related to the FPSO
conversion. Fitch may upgrade Kosmos to 'B+' if its production
sustainably exceeds 35mbpd-40mbpd. Assuming the long-term
solution for the damaged FPSO is fully implemented and TEN is
ramped up this level is achievable by 2018-19.
Ghana-Ivory Coast Border Dispute
Ghana and Ivory Coast have never officially agreed on their
maritime border, and in September 2014 Ghana took legal action
under a UN convention to resolve the dispute as it could affect
the TEN project. In April 2015 the Hamburg-based International
Tribunal for the Law of the Sea ordered to suspend all new
drilling in the disputed area until the final decision is taken in
late 2017; however, it allowed production from wells already
drilled.
Kosmos announced it expects TEN to proceed as planned as all the
wells required for the 'first oil' phase have been drilled. Fitch
agrees that the risks there are limited; however, we are unlikely
to give Kosmos the full credit for the project until the dispute
has been fully resolved.
Hedging Mitigates Falling Oil Prices
A consistent hedging strategy has allowed Kosmos to mitigate the
negative effect of falling oil prices and finance its ambitious
capex while keeping the debt load under control. Kosmos has
hedged 3 million barrels for 2H16 (16mbpd) at an average floor
price of USD82/bbl, and 8 million barrels (22mbpd) at USD57/bbl in
2017. At Fitch's current price deck it expects that the company's
hedging arrangements will contribute around USD150 mil. to
operating cash flow in 2H16-2017, in addition to USD102 mil.
realized in 1H16.
Adequate Reserves
At end-2015 Kosmos had proved oil and gas reserves of 76 million
barrels (MMboe). Its proved (1P) reserve life of nine years and
proved and probable (2P) reserve life of 17.5 years are in line
with the median for Fitch-rated speculative-grade peers (10 and 18
years, respectively).
Kosmos' per-barrel profitability is strong due to a favourable tax
regime, fairly low lifting costs and concentration on liquids. In
2015, its funds from operation (FFO) per barrel produced amounted
to USD36/bbl and USD9/bbl, with and without derivative hedges,
respectively.
Elevated Country Risk
Kosmos is exposed to high country risks, as its operations are
concentrated in Ghana. Ghana has a strong business environment
relative to other African countries, ranking 114 out of 189 in the
World Bank's 2015 Doing Business Survey. It is also safer
compared with some other parts of Africa such as the Niger Delta.
However, the country's public finances are weak.
Fitch expects that the tax regime for oil companies in Ghana will
not change over the medium term, though Kosmos' cash taxes will
materially increase in 2018-19 as the company's capital allowances
will be largely utilised. However, the possibility of tax regime
change cannot be ruled out due to Ghana's large budget deficit.
Fitch also assumes that Kosmos' operations would not necessarily
be affected by capital controls or other possible restrictive
measures, since the company's proceeds do not flow through Ghana
and cash assets are kept primarily outside Ghana. Fitch therefore
do not cap Kosmos' rating at the sovereign rating or the Country
Ceiling. However, Fitch may review this approach if the
government attempts to revise the tax regime in Ghana.
Extensive Exploration Portfolio
Kosmos' exploration success in offshore Mauritania / Senegal could
help the company diversify its production base over time. In
March 2016 Kosmos announced it drilled the fourth exploration well
in the region, and that its estimated gross resource estimates for
the Greater Tortue Complex increased to 20 trillion cubic feet
(Tcf), or 566 billion cubic meters (bcm), a large field by
industry standards. Potential commercialization options include a
farm out, and a floating LNG project.
The discovery has improved Kosmos' financial flexibility as the
field can be farmed down; however, depending on the
commercialization route yet to be chosen it could increase
Kosmos's capital intensity and completion risks.
Kosmos has an extensive exploration portfolio, including several
licensed blocks in offshore west Africa, Portugal, Suriname and
Sao Tome. It may help the company replenish its reserves, but
success is not guaranteed and the exploration budget may put a
strain on the company's free cash flow (FCF). A failure to
translate exploration spending into increased proved reserves over
time could negatively affect its credit position.
Limited Leverage Headroom
Kosmos' leverage will increase in 2016 on lower oil prices, higher
capex, and consequences of the FPSO damage, as there may be a time
lag between materialisation of losses and insurance reimbursement.
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B O L I V I A
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SEGUROS Y REASEGUROS: Moody's Affirms 'B3' IFS Rating
-----------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo S.A. has
affirmed Seguros y Reaseguros Credinform Internacional S.A.'s B3
global local currency (GLC) insurance financial strength (IFS)
rating, and upgraded the company's national scale IFS rating to
Baa3.bo from Ba1.bo. The outlook for the ratings was revised to
stable from negative.
RATINGS RATIONALE
According to Moody's, Credinform's stabilized outlook primarily
reflects the benefit of a capital contribution made by its
shareholders during the first half of the year, which together
with the company's accrued profits, more than offset an increase
of doubtful accounts on the company's balance sheet relating to
uncertainties regarding an arbitration process the company faces
with some of its reinsurers. Moody's lead analyst Diego
Nemirovsky said: "reinsurance recoverables in the company's
balance sheet related to this arbitration process represented 75%
of the company's capital at year-end 2014; as of August 2016,
however, the exposure had declined to just 24%, a much more
manageable level, implying that a negative settlement scenario for
the company would not significantly pressure the company's
ratings".
Moody's went on to say that the upgrade of Credinform's national
scale IFS rating to Baa3.bo from Ba1.bo reflects the company's
stronger credit profile relative to other B3-rated Bolivian
issuers, given the insurer's sound market presence, solid
profitability, and diversified book of business in comparison to
peers.
Moody's noted, however, that these positive factors are
significantly tempered by the company's still high reinsurance
recoverables exposure, as well as by its asset-quality risk, with
high exposure to real estate assets. The rating agency also noted
the company's poor historical reserve adequacy and systemic
country-specific risk of Bolivia.
Among factors that could lead to an upgrade of Credinform's
ratings, Moody's mentioned the following: 1) improvement and
maintenance of its capital position, with a gross underwriting
leverage consistently below 4x; 2) stronger reserve adequacy; and
3) improvement in asset credit quality. Conversely, factors that
could lead to a rating downgrade include one or more of the
following: 1) gross underwriting leverage steadily above 8x
shareholders' equity, and/or failure to comply with local capital
regulatory requirements; 2) significant reduction in company's
market share; 3) sustained decline in profitability; or 4)
significant deterioration in Bolivia's government bond rating
and/or the country's operating environment.
Credinform is a Bolivian property and casualty insurer and is
privately owned by a local family. It is focused primarily on
motor and car accident liability insurance, although the company
is diversified across other segments including aviation, fire and
engineering, cargo, and surety. Credinform's product distribution
is conducted through independent agents, brokers, and its own
sales force.
Based in La Paz, Credinform reported a net profit of BOB 13
million, and gross premiums written of BOB 266 million for the
first 6 months of 2016. As of June 2016, total assets were BOB
532 million and shareholders' equity was BOB 139 million.
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B R A Z I L
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CENTRAIS EOLICAS: Moody's Assigns Ba2 Rating on BRL35MM Debentures
------------------------------------------------------------------
Moody's America Latina assigned a Ba2 global scale rating and a
Aa2.br Brazil national scale rating to Cea I - Centrais Eolicas
Assurua I Spe S/A BRL35 million senior secured debentures, to be
issued in the form of infrastructure debentures pursuant to Law
12,431. The outlook for all ratings is negative. This is the
first time that Moody's has rated the company's securities.
CEA I is a special purpose vehicle fully owned by CEA Energia S.A.
(not rated), for which the main ultimate shareholders are Ferraz
de Campos Family Office, Bayar Participacoes and Gel Engenharia.
CEA I has total installed capacity of 68MW consolidating the
Assurua II, V, VII wind power projects located in the State of
Bahia (cluster Xique-Xique), that started operations in April,
2016. The G97 2.0 MW wind turbines were supplied by Gamesa, with
a two-year guarantee. Gamesa will be responsible for the O&M
during the first five years with the possibility to increase for
five additional years. The company's generated energy is fully
contracted for 20 years through a reserve energy auction (LER
2013) contract signed with CCEE at physical guarantee of
33.6 GWAvg.
Moody's anticipates that the debentures will be issued by mid-
October. The assigned ratings are based on preliminary
documentation received by Moody's as of the rating assignment
date. Moody's does not expect changes to the documentation
reviewed over this period or anticipates changes in the main
conditions that the debentures will carry. Should issuance
conditions and/or final documentation program deviate from the
original ones submitted and reviewed by the rating agency, Moody's
will assess the impact that these differences may have on the
ratings and act accordingly.
RATINGS RATIONALE
The fully-amortizing debentures will have a 12-year maturity with
a bi-annual tailor-made amortization schedule. The debentures'
security package includes: (i) pledge of the issuer's shares (ii)
pledge of its projects' (Assurua II, V, VII) shares and equipment;
(iii) pledge of the concession rights; (iv) pledge of receivables;
(v) pledge of reserve accounts; (vi) assignment of insurance
proceeds; and (vii) assignment of a letter of credit from Itau
Unibanco S.A. (Ba2, negative) valid up to 2018. The security
package will be shared between BNDES and the infrastructure
debenture investors on a pari-passu basis.
The debentures will have usual and customary project finance
covenants, similarly shared between the indenture and the BNDES
loan, such as a minimum DSCR of 1.2x measured on an annual basis
in addition to limitations on indebtedness, dividend distribution
and security coupled with the need to maintain the project's
authorizations. Non-compliance with these covenants can trigger
cross-default and debt acceleration under both BNDES's loan and
the debentures as well as change of control or capital increases,
if not previously approved by creditors.
The Ba2 rating reflects the (i) fully contracted revenue profile
with a 20-year take or pay contract with CCEE (Brazilian
Electricity Clearing House) as per the LER 2013 auction; (ii)
adequate fuel source given the PPA conditions and a strong
capacity factor, according to wind studies and the project's
limited operational track record; (iii) well known O&M operator
and guarantees with a five year contract with Gamesa; (iv) proven
technology and (v) adequate financial metrics under conservative
assumptions. The overall supportive regulatory environment
further supports the rating. On the other hand, the rating is
somewhat constrained by (i) the sponsor's short operating track
record; (ii) relatively weak liquidity provisions compared to
typical projects globally through a three month reserve account;
(iii) relatively low minimum required DSCR of 1.2x.
Rating Outlook
The negative outlook reflects our view that in spite of the
predictable and stable cash flows from the 20-year PPA contract
with CCEE, the project has a local-content revenue profile that
limits its upside credit profile to the current outlook on
Brazil's sovereign rating. Moreover, we understand that the off-
taker (CCEE) is closely linked to the national electricity
regulator, Aneel and consequently, to Brazil's credit quality.
What Could Change the Rating - Up/ Down
In light of the negative outlook, Moody's do not expect upward
rating pressure in the short to medium term. Moody's recognizes,
however, that wind studies suggest a capacity factor potentially
above the P90 1 year scenario used in our projections.
The rating could be downgraded if there is a significant and
sustained deterioration in CEA I's credit metrics or if the DSCR
falls below 1.2x as per Moody's standard adjustments.
Additionally, a wind-fuel performance consistently below our
expectations could also trigger a downgrade as well as the
deterioration in the credit quality of CEA Energia and/or its
ultimate shareholders. A change in control or in the corporate
structure could also pressure the rating as well as a perceived
weakened commitment from the sponsors with the project. Further
deterioration in Brazil's sovereign credit quality could also
trigger a rating action as well as our perception of a decline in
the level of supportiveness, consistency and predictability of the
Brazilian regulatory environment for the electricity sector. Any
changes from the documentation received and the final indentures
that lead to a weaker credit profile, project structure and/or
security package could also trigger a downgrade.
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C A Y M A N I S L A N D S
==========================
AERIS CAPITAL: Placed Under Voluntary Wind-Up
---------------------------------------------
On Sept. 13, 2016, the shareholders of Aeris Capital Sustainable
IP 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:
Avalon Ltd.
Reference: GL
Landmark Square, 1st Floor, 64 Earth Close
P.O. Box 715 Grand Cayman KY1-1107
Cayman Islands
Telephone: (+1) 345 769 4422
Facsimile: (+1) 345 769 9351
FRM GLOBAL: Creditors' Proofs of Debt Due Oct. 25
-------------------------------------------------
The creditors of FRM Global Equity Fund SPC are required to file
their proofs of debt by Oct. 25, 2016, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Sept. 16, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
e-mail: steve.bull@ky.ey.com
FRM GLOBAL MASTER: Creditors' Proofs of Debt Due Oct. 25
--------------------------------------------------------
The creditors of FRM Global Equity Master Fund SPC are required to
file their proofs of debt by Oct. 25, 2016, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Sept. 16, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
FRM PHOENIX: Creditors' Proofs of Debt Due Oct. 25
--------------------------------------------------
The creditors of FRM Phoenix Fund Limited are required to file
their proofs of debt by Oct. 25, 2016, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Sept. 16, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLG ASIAN: Creditors' Proofs of Debt Due Oct. 25
------------------------------------------------
The creditors of GLG Asian Equity Long-Short Master Fund Ltd. are
required to file their proofs of debt by Oct. 25, 2016, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 16, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLG ORE: Creditors' Proofs of Debt Due Oct. 25
----------------------------------------------
The creditors of GLG Ore Hill Levered Credit Fund Ltd. are
required to file their proofs of debt by Oct. 25, 2016, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 16, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLG ORE HUB: Creditors' Proofs of Debt Due Oct. 25
--------------------------------------------------
The creditors of GLG Ore Hill Levered Credit Hub Fund Ltd. are
required to file their proofs of debt by Oct. 25, 2016, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 16, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
LOIRE LIMITED: Creditors' Proofs of Debt Due Oct. 25
----------------------------------------------------
The creditors of Loire Limited are required to file their proofs
of debt by Oct. 25, 2016, to be included in the company's dividend
distribution.
The company commenced liquidation proceedings on Sept. 16, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
MAN RMF: Creditors' Proofs of Debt Due Oct. 25
----------------------------------------------
The creditors of Man RMF Investment Strategies Ltd. are required
to file their proofs of debt by Oct. 25, 2016, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 16, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
PENINSULA LIFE: Creditors' Meeting Set for Oct. 10
--------------------------------------------------
The creditors of Peninsula Life Settlement Fund SPC will hold
their meeting on Oct. 10, 2016, at 10:00 a.m., at the registered
office of the company.
The company's liquidator is:
Russell Smith
Antoine Powell
BDO CRI (Cayman) Ltd.
P.O. Box 31229, George Town
Grand Cayman KY1-1205
Cayman Islands
Telephone: (345) 815 4558
Facsimile: (345) 769 8821
RMF ENHANCED: Creditors' Proofs of Debt Due Oct. 25
---------------------------------------------------
The creditors of RMF Enhanced Alpha (Master) Limited are required
to file their proofs of debt by Oct. 25, 2016, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 16, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
RMF NORDIC: Creditors' Proofs of Debt Due Oct. 25
-------------------------------------------------
The creditors of RMF Nordic Top Select Eur Master Limited are
required to file their proofs of debt by Oct. 25, 2016, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 16, 2016.
The company's liquidator is:
Claire Loebell
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
SUMMIT OFFSHORE: Creditors' Proofs of Debt Due Oct. 31
------------------------------------------------------
The creditors of Summit Offshore Water Equity Fund, Ltd. are
required to file their proofs of debt by Oct. 31, 2016, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on Sept. 15, 2016.
The company's liquidators are:
Alan Turner
Andrew Johnson
Telephone: 345 814 0700
Circumference FS (Cayman) Ltd.
P.O. Box 32322 Grand Cayman KY1-1209
Cayman Islands
===================================
D O M I N I C A N R E P U B L I C
===================================
* DOMINICAN REPUBLIC: Customs to Charge a Sweeping 9% Tax in 2017
-----------------------------------------------------------------
Dominican Today reports that starting next year the government
plans, through Customs, a 9% ITEBIS tax on raw materials,
industrial machinery and capital goods which currently pay zero,
according to Article 24 of the 2005 Tax Reform.
Among the items cited in Article 24 of the 2005 Tax Reform figure
roosters and hens, poultry for breeding, dehydrated packaged meat
of up to 25 kg of tuna, yellowfin tuna, herring and cod. Also
sardines, flour, sorghum, corn, according to Dominican Today.
The legislation also transfers 50% of the Dominican Telecom
Institute's (Indotel) revenue, to the Treasury, as stipulated in
the Telecommunications Contribution Development Law, the report
notes.
The legislation also instructs the State-owned Reservas bank to
transfer funds to the Treasury by the 15th of each month, a
measure which the Comptroller will enforce, the report relays.
As reported in the Troubled Company Reporter-Latin America on
July 1, 2016, Moody's Investors Service has changed the outlook on
the Dominican Republic's long term issuer and debt ratings to
positive from stable. The ratings have been affirmed at B1.
=============
J A M A I C A
=============
JAMAICA: Saved From Full Impact of Hurricane Matthew
----------------------------------------------------
Caribbean360.com reports that while Matthew may still be a
powerful Category 4 hurricane, which had Jamaica under a hurricane
warning, it's on a path that is taking it east of the country,
sparing the island its full impact.
Government discontinued a hurricane warning and replaced it with a
tropical storm warning as Hurricane Matthew's center tracked
closer to Haiti, according to Caribbean360.com.
At 8 a.m., Oct. 4, Matthew was 10 miles east of Tiburon, Haiti,
and moving towards the north at 9 miles per hour. Hurricane
Matthew is packing maximum sustained winds near 145 miles per hour
with higher gusts, the report notes.
Director of Jamaica's Meteorological Service, Evan Thompson, said
authorities believe the island had been "spared a bit", according
to the Associated Press, considering forecasters initially
predicted Matthew's eye might rake over Jamaica's east as a
powerful hurricane, the report relays.
"We escaped the worst of the impacts, but we don't think that we
are out of the woods yet," Mr. Thompson said as Matthew's outer
bands continued to soak parts of the island, the report notes.
Many residents have chosen to ride Matthew out at home. But up to
Oct. 3, approximately 89 Shelters Island wide were housing 1,845
people, the report discloses.
The island is expected to be outside the range of hurricane-force
winds associated with Matthew, but will experience tropical storm
conditions, the report relays.
Matthew is expected to produce total rainfall amounts in eastern
Jamaica of 4 to 6 inches, with isolated amounts of 10 inches, and
1 to 2 inches in the west of the island with isolated amounts of 3
inches, the report says.
The warning downgrade comes as partial relief for a country whose
infrastructure, Local Government Minister Desmond McKenzie had
said, could not withstand the brunt of Hurricane Matthew's strong
winds and heavy rains, the report notes.
As reported in the Troubled Company Reporter-Latin America on
Sept. 28, 2016, S&P Global Ratings affirmed its 'B' long-term and
short-term foreign and local currency sovereign credit ratings on
Jamaica. The outlook on the long-term sovereign credit ratings
remains stable. In addition, S&P affirmed its transfer and
convertibility assessment at 'B+'.
JAMAICA: Customs Records Loss of More Than J$500 Million
--------------------------------------------------------
According to RJR News, Jamaica Customs is reporting that it lost
more than J$500 million in revenues due to the disruptions caused
by Hurricane Matthew.
"We estimate approximately J$570 million of our regular stream, we
also have other sources in terms of when vessels discharge bulk
cargo including fuel," said Major Richard Reece, Commissioner of
Customs, according to RJR News.
Meanwhile, Jamaica Customs is on standby for the resumption of
operations, the report notes.
"Once we have information that the ports have opened -- and of
course on the aviation side, once flights resume. Our personnel
are on standby . . . . ," Mr. Reece said, the report relays.
As reported in the Troubled Company Reporter-Latin America on
Sept. 28, 2016, S&P Global Ratings affirmed its 'B' long-term and
short-term foreign and local currency sovereign credit ratings on
Jamaica. The outlook on the long-term sovereign credit ratings
remains stable. In addition, S&P affirmed its transfer and
convertibility assessment at 'B+'.
=======
P E R U
=======
UNION ANDINA: S&P Revises Outlook to Neg. & Affirms 'BB+' CCR
-------------------------------------------------------------
S&P Global Ratings said that it had revised its outlook on Union
Andina de Cementos S.A.A. y Subsidiarias (UNACEM) to negative from
stable. At the same time, S&P affirmed its 'BB+' corporate credit
and issue-level ratings on UNACEM.
The outlook revision reflects UNACEM's weaker operating and
financial performance than S&P expected during the first two
quarters of 2016 and S&P's view that improvement could take longer
than it currently anticipates if activity in the Peruvian and
Ecuadorian construction sector does not recover as S&P anticipates
in the next six to 12 months.
The company's results have been primarily hit by delays in the
execution of important infrastructure projects and lower activity
of the construction sector in Peru as a consequence of the
country's presidential election period, which generated high
uncertainty and postponements in government spending. Moreover,
S&P observed sharp declines in public-sector investment in
Ecuador, which also significantly affected the company's cement
volumes in that country. This resulted in weaker credit metrics
than S&P expected, with debt to EBITDA at 4.2x and deterioration
of the liquidity position for the 12 months ended June 30, 2016.
Although S&P anticipates a gradual recovery in the execution of
infrastructure projects in both Peru and Ecuador, which should
support higher cement demands in 2017 and thereafter, any
deviations in the materialization of these conditions could place
further pressure on UNACEM's credit metrics and liquidity
throughout 2017.
S&P's rating continues to reflect UNACEM's leading market position
in the cement industry in Peru, where it holds a 47% market share
in the nation overall, and a dominant position in the central
region of the country. S&P takes into account the company's
established and extensive distribution network, plant locations,
and its vertical integration, which together support a high level
of operating efficiency, a low and flexible cost base, and an
above-average EBITDA margin for the industry.
However, S&P believes that these strengths are somewhat
constrained by the company's limited scale of operations compared
with that of global peers, as well as its geographic concentration
in the central region of Peru. Moreover, S&P believes that the
company continues to show limited asset diversification because
most of its revenues are generated from its Atocongo and
Concordocha plants. Furthermore, the company has some exposure to
country risk related to its operations in Ecuador, which currently
represents about 15% of its total sales.
Although S&P continues to expect a challenging environment in
UNACEM's main market until the end of 2016, S&P believes that the
company will gradually recover its cement volumes in 2017, thanks
zo large infrastructure projects that S&P expects will kick off
under the new Peruvian administration. In line with S&P's base-
case scenario, it expects UNACEM's debt-to-EBITDA ratio to be
below 4.0x and the company to strengthen its cash balance in the
next 12 months. This will stem from higher cement volumes, the
company's ability to adjust its prices to mitigate potential
additional foreign exchange devaluation, to maintain its strict
cost controls and operating efficiencies, and to significantly
reduce its capital expenditure (capex). This should result in
improved discretionary cash flow (DCF) generation, reflected in a
DCF-to-debt ratio above 10% by year-end 2017.
S&P believes that UNACEM operates in the most dynamic region of
Peru, including Lima, and that the large infrastructure gap and
housing deficit bolster upside in cement demand for UNACEM. S&P
therefore continues to apply a one-notch uplift in S&P's
comparable rating analysis. Moreover, S&P believes that UNACEM's
business risk profile is stronger than that of other cement
companies S&P rates, particularly those in the same region. These
additional strengths are not fully reflected in S&P's business
risk profile assessment, however.
The issue-level rating on UNACEM's US$625 million senior unsecured
and unguaranteed notes due 2021 is at the same level as S&P's
corporate credit rating on the company, given that the issuer of
the notes, UNACEM, is also an operating holding company, which
gives its creditors a priority claim to the parent-level assets.
In S&P's view, this at least partially offsets the disadvantage
that pertains to being structurally subordinated to the assets
owned by the subsidiaries.
The negative outlook on UNACEM reflects S&P's belief that, despite
its expectations of some gradual recovery in cement demand in Peru
from 2017, the company's operating performance could continue to
be weak for the current rating over the next quarters if the
construction sector activity remains soft in the next six to 12
months. This could in turn continue to pressure the company's
credit metrics and liquidity position.
S&P could lower the rating in the next six to 12 months if the
company's sales growth and profitability levels are lower than S&P
anticipates as a result of continuing weak market conditions in
Peru and Ecuador, resulting in a debt-to-EBITDA ratio consistently
above 4.0x. S&P could also lower the rating if the company adopts
an aggressive debt-financed acquisition strategy, or if it uses
its cash balance to boost capex or dividend payments. A negative
rating action is also possible if UNACEM's liquidity continues to
tighten, which could result from a failure to refinance its short-
term debt effectively.
S&P could revise the outlook to stable if the company demonstrates
improved and consistent performance, following a recovery in
cement demand in the markets where it operates, while maintaining
its adequate liquidity. This should be reflected in a debt-to-
EBITDA ratio consistently below 4.0x and a DCF-to-debt ratio above
5%.
================================
T R I N I D A D & T O B A G O
================================
* TRINIDAD & TOBAGO: Economists Not Impressed With Budget
----------------------------------------------------------
Trinidad Express reports that the 2016/2017 budget debate showed
no real commitment to economic growth and economic
diversification, according to economists Hayden Blades and Indera
Sagewan-Alli.
They were part of a panel of speakers at the post-budget forum
hosted by the Oilfields Workers Trade Union (OWTU) at its
headquarters in San Fernando, according to Trinidad Express.
Speakers also included president of the Bankers Insurance and
General Workers Union (BIGWU) Vincent Cabrera, president of the
Trinidad and Tobago Farmers Union Shiraz Khan and president of the
Federation of Independent Trade Union and Non-Governmental
Organisations (FITUN), Joseph Remy, the report relays.
=================
X X X X X X X X X
=================
LATAM: Corporate Default Rates Rise to 6-Yr. High, Moody's Says
---------------------------------------------------------------
The default rate for Latin American corporates has climbed to its
highest level in more than six years and is set to continue
climbing further, says Moody's Investors Service.
The speculative-grade issuer-weighted default rate for Latin
American corporates increased to 5.3% for the 12 months ended in
June 2016, up from 4% in the year-ago period. This compares with
a global rate of 4.6% for the same period.
"Twelve Latin American corporates with Moody's-rated debt have
defaulted since this time last year," said Yang Liu, an Associate
Analyst at Moody's. "Of those four were in Brazil, including that
of Oi S.A., the largest default in the region's history."
Telecommunications company Oi filed for judicial recovery,
equivalent to filing for Chapter 11 bankruptcy protection in the
U.S., on June 20, 2016. The move came after Oi failed to reach an
agreement with its bondholders on haircuts that would have cut the
face value of its debt by as much as 75%. The company's
persistently increasing leverage and cash consumption had reduced
its financial flexibility and led to an untenable capital
structure. Oi defaulted on $13 billion of debt.
Over the past year, rating downgrades have been more numerous than
upgrades in Latin America. On average, senior unsecured
equivalent ratings have drifted down by 0.69 notches in the
region. The one-year volatility for Latin American ratings has
also increased significantly, rising to 0.98 from 0.38 a year
earlier. That's much higher than the historical average of 0.49.
Moody's Credit Transition Model (CTM) forecasts that the Latin
American speculative grade default rate for the trailing 12-month
period ending June 2017 will continue to rise this year, climbing
to 5.7% in the baseline scenario.
Moody's rated the debt of 424 companies in 21 Latin American
countries at the end of June 2016. The majority of debt issuers
were based in Brazil, Argentina and Mexico.
***********
Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades. Prices
for actual trades are probably different. Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind. It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.
Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
Submissions about insolvency-related conferences are encouraged.
Send announcements to conferences@bankrupt.com
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A.
Chapman, Editors.
Copyright 2016. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.
Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.
The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail. Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000 or Nina Novak at
202-362-8552.
* * * End of Transmission * * *