/raid1/www/Hosts/bankrupt/TCRLA_Public/161017.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
Monday, October 17, 2016, Vol. 17, No. 205
Headlines
A R G E N T I N A
ARGENTINA: Fitch Affirms B Issuer Default Ratings, Outlook Stable
BANCO SANTANDER RIO: Fitch Retains 'B' IDR on Acquisition Plan
GPAT COMPANIA: Moody's Assigns B1 Rating to Series XXV Debt
INVERSORA ELECTRICA: Seeks US Recognition of Argentinian Cases
YPF SOCIEDAD: Moody's Rates B3 Rating to Proposed $325MM Notes
B R A Z I L
JBS SA: Fitch Affirms 'BB+' IDR; Outlook Stable
PETROLEO BRASILEIRO: Discloses New Pricing for Gas, Diesel
C A Y M A N I S L A N D S
ALGO K CURRENCY: Placed Under Voluntary Wind-Up
BANK OF SCOTLAND (CAYMAN): Creditors' Proofs of Debt Due Dec. 10
BANK OF SCOTLAND HONG KONG: Creditors' Proofs of Debt Due Dec. 10
BLACKSTONE VRF: Commences Liquidation Proceedings
FALCON HOLDINGS: Creditors' Proofs of Debt Due Nov. 7
GLOBAL TAIWAN: Creditors' Proofs of Debt Due Nov. 7
HBM BIOMEDICINE: Commences Liquidation Proceedings
MAP MARINE: Creditors to Hold First Meeting on Oct. 25
OLD PARK: Court Enters Wind-Up Order
SAB OVERSEAS: Creditors' Proofs of Debt Due Oct. 31
STABLE ALPHA: Creditors' Proofs of Debt Due Nov. 4
TE&K INTERNATIONAL: Creditors' Proofs of Debt Due Oct. 31
TRIANGULAR QUA: Commences Liquidation Proceedings
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Officials Butt Heads Over 'Scarce' Dollars
DOMINICAN REPUBLIC: Doesn't Make Enough Dollars to Meet Demand
DOMINICAN REPUBLIC: Brazil Funding Freeze Won't Affect Works
E L S A L V A D O R
EL SALVADOR: S&P Lowers Sovereign Credit Rating to 'B'
P U E R T O R I C O
BAHIA SALINAS: Seeks to Hire Lozada Law as Legal Counsel
MANUEL BABILONIA: Stipulation With BofA, Sale May Impact Value
VACA BRAVA: Taps Albert Tamarez-Vasquez as Financial Advisor
X X X X X X X X X
LATIN AMERICA: Bucking Global Protectionist Trend, Ministers Say
* BOND PRICING: For the Week From Oct. 10 to Oct. 14, 2016
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A R G E N T I N A
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ARGENTINA: Fitch Affirms B Issuer Default Ratings, Outlook Stable
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Fitch Ratings has affirmed Argentina's sovereign ratings as:
-- Long-term Foreign and Local Currency Issuer Default Ratings
(IDRs) at 'B', Outlook Stable;
-- Senior unsecured Foreign Currency bonds at 'B';
-- Country Ceiling at 'B';
-- Short-Term Foreign and Local Currency IDRs at 'B'.
KEY RATING DRIVERS
Argentina's ratings balance the improved consistency and
sustainability of its policy framework, reduced external
vulnerability, and the easing of external and fiscal financing
constraints against relatively weak external liquidity, continued
macroeconomic underperformance compared with peers, and
deterioration of public finances. Argentina's ratings also
balance structural strengths such as GDP per capita and social
indicators against a weak debt repayment record.
The central bank has focused its policy actions on addressing
rising inflation in the first half of 2016 and containing
inflation expectations. It has also announced moves toward an
inflation targeting framework. Moreover, the introduction of a
budget with realistic guidelines could improve the predictability
of fiscal policy. Finally, the government is making progress in
rebuilding the credibility and reliability of official statistics.
The resumption of the IMF Article IV reviews supports greater
transparency.
International reserves have increased to USD32.5 billion in early
October, up 30% from end-2015 levels. The increased flexibility
of the Argentine peso should contribute towards improving the
capacity of the economy to absorb external shocks and relieve
pressure on international reserves. In addition, balance of
payments pressures are likely to remain in check due to moderate
current account deficits, access to external financing, and the
discontinuation of using reserves for sovereign debt payments.
Nevertheless, Argentina's external liquidity ratio, forecast by
Fitch at 54% in 2017, remains low in relation to 'B' rated peers,
especially given the country's high commodity dependence and
recent episodes of balance of payments pressures.
A delayed recovery, inflation and large fiscal deficits represent
key policy challenges for the Macri administration. Fitch expects
the economy to contract by 1.7% in 2016 and recover to 3.2% growth
in 2017 driven by the reactivation of public investment, lower
inflation and a better growth outlook for Brazil. Inflation
remains high (close to 40%) according to private and local
government estimates but has shown month-on-month deceleration,
and inflation expectations have declined significantly.
In an effort to strengthen monetary policy credibility and
predictability, the central bank has made official its intention
to adopt an inflation targeting regime, setting an inflation band
of 12-17% for 2017 and the objective of reducing inflation to 5%
in 2019. Fitch believes that the disinflation process will be
more moderate due to challenges such as backward-looking salary
adjustments. Moreover, sustaining a large fiscal imbalance for a
longer period could weigh on the build-up of monetary policy
credibility despite the phasing-out of central bank financing.
Fitch estimates the general government deficit could increase to
5.6% of GDP, up from 4.8% in 2015 and above the 4.1% 'B' category
median reflecting tax reductions, weaker than anticipated economic
performance, the payment of arrears worth 0.7% of GDP and setbacks
to the subsidy reduction strategy. The government is on track to
meet its 2016 federal primary deficit (excluding central bank and
social security transfers) target of 4.8%, but it revised up its
2017 target to 4.2% from 3.3% of GDP. This revision reflects real
spending increases due to social and pension outlays, and the
reactivation of public investment.
Gross general government debt (consolidating federal and
provincial debt with federal debt held by the social security
administration, ANSES) could remain elevated at 50.4% of GDP in
2016, slightly below the 'B' median. The government reported that
only 19.4% of GDP was held by the private sector in Q116. Fitch
forecast the general government deficit to equal 5.8% of GDP in
2017 and total amortizations 6.3% of GDP (1.2% of GDP expected to
be rolled-over by the central bank). In contrast to the previous
administration, the current authorities do not intend to tap into
international reserves for debt service while at the same time
reducing the participation of intra-public sector financing.
Significant financing requirements, though, create vulnerability
to global conditions and investor confidence
In spite of having a minority position in Congress, the Macri
administration has been able to muster the necessary support to
approve key pieces of legislation such as the law to settle with
holdout creditors and tax amnesty. Legislative elections are
scheduled to take place in 2017. The Macri administration
maintains strong approval ratings, but the ruling Cambiemos
electoral performance will depend on the magnitude and perception
of economic rebound and the progress of the opposition Peronist
party reorganization.
SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO)
Fitch's proprietary SRM assigns Argentina a score equivalent to a
rating of 'B' on the Long-Term Foreign Currency IDR scale.
Fitch's sovereign rating committee did not adjust the output from
the SRM to arrive at the final Long-Term Foreign Currency IDR.
Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three year centred
averages, including one year of forecasts, to produce a score
equivalent to a Long-Term Foreign Currency IDR. Fitch's QO is a
forward-looking qualitative framework designed to allow for
adjustment to the SRM output to assign the final rating,
reflecting factors within the agency's criteria that are not fully
quantifiable and/or not fully reflected in the SRM.
RATING SENSITIVITIES
The main risk factors that, individually or collectively, could
trigger a positive rating action are:
-- Faster-than-anticipated fiscal consolidation and deepening
of market funding sources;
-- Consolidation of strengthened policy framework leading to
improvement in macroeconomic performance in relation to
peers;
-- Strengthening of external buffers.
The main factors that could lead to a negative rating action are:
-- Re-emergence of financing pressures, failure to consolidate
fiscal accounts or to improve funding sources such as
maintaining access to capital markets;
-- Erosion of international reserves.
KEY ASSUMPTIONS
-- Fitch assumes that China will avoid a hard landing, growing
by 6.5% and 6.3% in 2016 and 2017, respectively. In
contrast, Fitch expects Brazil to contract by 3.3% in 2016
and grow by 1.2% in 2017.
-- Fitch assumes that remaining legal risks from holdout
creditors will not prevent Argentina from servicing external
debt or accessing external capital markets.
BANCO SANTANDER RIO: Fitch Retains 'B' IDR on Acquisition Plan
--------------------------------------------------------------
Fitch Ratings sees no impact on Argentina's Banco Santander Rio's
ratings after it announced on Oct. 10, 2016, an agreement to
acquire Citibank Argentina's consumer finance business.
With this acquisition, Santander Rio will consolidate its position
as the largest private sector bank in Argentina. The acquired
operations include roughly ARS10.600 million in loans, ARS16.200
in deposits, 500.000 retail clients and 70 branches. At June 30,
2016, Santander Rio had ARS94,015 million in total gross loans,
ARS118,437 million in customer deposits, 2.7 million clients and
401 branches.
Once the transaction is approved by the relevant regulators and is
closed, Santander Rio will assume control of Citi's retail
portfolio. While the details of the transaction have not been
made public, based on Santander Rio and internal calculations,
Fitch estimates that the impact of this transaction on the bank's
capital will be manageable, and overall profitability should not
be overly affected.
Assuming the bank maintains its loan growth and good earnings
generation, the bank estimates an overall impact on its Fitch Core
Capital (FCC) ratio of around 150bp at the time of the approval of
the deal, assuming this takes place in 1H2017. Given the bank's
current FCC of 12.1% at June 30, 2016, in Fitch's opinion, the
bank's capitalization will still be adequate for its rating level.
The transaction and should therefore not affect the bank's
ratings. Fitch will nevertheless continue to monitor the bank and
its performance to verify that it continues to evolve within the
agency's base case scenario.
Fitch currently rates Santander Rio as:
-- Long-Term Local Currency Issuer Default Rating 'B'; Outlook
Stable;
-- Viability Rating 'b';
-- Support Rating '5'.
GPAT COMPANIA: Moody's Assigns B1 Rating to Series XXV Debt
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Moody's Latin America Agente de Calificacion de Riesgo (MLA) has
assigned a B1 global scale rating (GSR) and a Aa3.ar national
scale rating (NSR) to GPAT Compania Financiera (GPAT)'s XXV series
issuance up to ARS 300 million, under its senior debt program of
ARS 1500 million. All ratings have been placed under review for
downgrade, in line with the other ratings assigned to the entity.
The following ratings were assigned to GPAT Compania Financiera
S.A.'s series XXV senior unsecured debt issuance up to ARS 300
million:
-- B1 Global Local Currency Debt Rating, Outlook Rating Under
Review
-- Aa3.ar Argentina National Scale Local Currency Debt Rating
RATINGS RATIONALE
GPAT is a finance company mainly focused on the financing of
General Motors vehicle purchases by individuals through car
dealers. The company offers its products through its foreign-owned
parent, Banco Patagonia's branch network and the wholesale funding
for dealers is currently offered by Patagonia, while GPAT provides
all the back office services for this financing.
The B1 global local currency senior debt ratings derives from
GPAT's B1 corporate family rating. The rating reflects the
assessment of a moderate probability from its parent Banco
Patagonia, in the event of stress. While GPAT's GSR compares
poorly with global peers, its NSR is one of the highest in the
country.
The BCA considers Argentina's ongoing macroeconomic and
institutional challenges together with GPAT's monoline business
model dedicated to the financing of General Motors vehicles and
the increasing level of competition within the car-financing
industry in Argentina. Despite significant improvements since the
new administration took office in December 2015 and softened or
eliminated various burdensome government controls on the financial
system which should help support earnings, Argentina continues to
face significant economic and institutional challenges, including
high inflation and weak growth. Although the company posted good
profitability in 2015, this was distorted by the high rate of
inflation. While non-performing loans remain low thanks to the
company's focus on middle and high-income individuals, delinquency
levels are likely to rise given the current economic situation.
These risks are balanced in part by the GPAT's strong commercial
and strategic importance to the corporation, as well as its good
asset quality, profitability and capital metrics. The ratings also
include risks associated with a liability structure mainly reliant
on senior debt issuances, as is the case of other automobile
finance companies.
The review for downgrade of GPAT's ratings is in line with the
review of its parent Banco Patagonia's ratings, and considers the
strong linkages between the operations of the bank and this
subsidiary.
WHAT COULD CHANGE THE RATING UP/DOWN
The ratings could face downward pressure if GPAT's parent, Banco
Patagonia is downgraded, or in an event of deterioration in GPAT's
asset quality, capitalization and/or funding access. Reflecting
the ratings under review for downgrade, upward rating pressure is
unlikely at this time.
GPAT Compania Financiera S.A. is headquartered in Buenos Aires,
Argentina, and reported Ar$2,923 million of total assets and
Ar$889 million of shareholders' equity as of June 2016.
INVERSORA ELECTRICA: Seeks US Recognition of Argentinian Cases
--------------------------------------------------------------
Inversora Electrica de Buenos Aires S.A. filed a voluntary
petition under Chapter 15 of the Bankruptcy Code in the U.S.
Bankruptcy Court for the Southern District of New York on Oct. 12,
2016. IEBA's board of directors authorized the Chapter 15 filing
and appointed Jaime Javier Barba to act as foreign representative.
At the end of the second quarter of 2016, IEBA reported current
assets of $123.7 million and current liabilities of $34.3 million.
IEBA's net loss accumulated for the second quarter of 2016 was
$286.4 million, as disclosed in court documents.
"IEBA's financial difficulties stem from the economic crisis in
Argentina in 2002, and governmental responses to the crisis that
altered or limited EDEA's ability to adjust tariffs in accordance
with costs and a 'Concession Agreement' governing IEBA's ability
to collect tariffs," stated Mr. Barba in a declaration filed with
the Bankruptcy Court.
Headquartered in the City of Buenos Aires, Argentina, IEBA is the
Argentine holding company of Empresa Distribuidora de Energia
Atlantica S.A. ("EDEA"), which operates the distribution and
transportation of electricity in the eastern region of the
Province of Buenos Aires. IEBA was formed to acquire EDEA in
connection with the privatization of the electricity transmission
and distribution services by the Province of Buenos Aires. The
Debtor conducts substantially all of its operations through EDEA
and its operational and financial results consist mainly of
dividends received from EDEA.
On June 2, 1997, EDEA was granted an exclusive, 95-year concession
for the distribution and marketing of electricity in the eastern
region of the Province of Buenos Aires and started its operations.
The Concession covers an area of approximately 105,438 square
kilometers and with a population of over 1.6 million. Since this
region includes many of Argentina's main seaside cities, the
population increases significantly during the summer period,
reaching an average of 3 million people. EDEA services directly
17 districts in the interior of the Province of Buenos Aires. It
has approximately 513,000 customers, of which approximately 90%
are residential.
Infraestructura Energetica del Plata S.A. ("IEPSA") and its
subsidiary, Buenos Aires Energy Company S.A.U. ("BAECO"), own a
controlling stake in IEBA. The ultimate, indirect parent company
of IEBA, IEPSA and BAECO is Disvol Investment S.A.
In 2002, IEBA defaulted in the payment of its notes then
outstanding, and, on Jan. 12, 2003, it commenced a reorganization
proceeding (concurso preventivo) (the "Previous Argentine
Proceeding") under Argentine law. The Old Notes that are subject
to the IEBA APE were issued in 2007 pursuant to a restructuring
plan that was approved in the Previous Argentine Proceeding.
According to Mr. Barba, by mid-2003, EDEA's revenues in constant
currency dropped by approximately 70%. Subsequent actions by
regulatory authorities approved tariff schedules that also did not
comply with the Concession Agreement. At the same time, EDEA's
cost of operations increased as a result of inflation. Since IEBA
depends on dividends from EDEA, IEBA's financial condition was
weakened by EDEA's financial woes, he added.
As a result of the prolonged time period during which EDEA has
been unable to set tariffs in accordance with its cost structure,
and the tariff freeze in 2014, EDEA has been unable to pay
dividends to IEBA. In turn, IEBA has been unable to make coupon
payments on the Old Notes from and including its payment date on
Dec. 26, 2014. Accordingly, IEBA sought to restructure the Old
Notes, with the overwhelming consent of the owners of the Old
Notes, through the IEBA APE proceeding.
IEBA APE Proceeding
Seeking to restructure its Series C Notes and Series D Notes, IEBA
filed on Dec. 23, 2015, an acuerdo preventivo extrajudicial under
the provisions of Title II, Chapter VII of the Argentine
Bankruptcy Law No. 24,522 (as amended) before the National
Commercial Court N 1 sitting in the City of Buenos Aires. The
IEBA APE, which enjoys the support of over 91% of the Old Notes,
was approved by the Argentine Court on Sept. 8, 2016, through the
issuance of an acuerdo homologado (endorsement) of the IEBA APE
(the "Homologation Order").
On Sept. 26, 2016, IEBA consummated the transactions approved in
the IEBA APE with respect to the noteholders who consented to the
IEBA APE by making the cash payments and issuing and delivering
the notes required pursuant to the IEBA APE.
As of the commencement date of the Foreign Proceeding, the
outstanding principal amount of Old Notes (including those held in
the Escrow Account), which are issued under two series, was
approximately $130.3 million for Series C, and $4.7 million for
Series D. The Old Notes bear an interest rate of 6.5%. Only the
Old Notes were subject to restructuring pursuant to the IEBA APE;
the Debtor's commercial and other obligations remained unchanged
by the proceeding.
IEBA Restructuring Plan
The payment obligations under the Old Notes were not secured by
any of the Debtor's assets. The Old Notes, however, did have the
benefit of both: (i) a pledge on a portion of IEBA's shares
representing 10.56% of its capital stock and voting rights,
granted by BAECO in favor of Banco de Valores S.A., acting in its
capacity as collateral agent for holders of the Old Notes and (ii)
a pledge on a portion of IEBA's shares representing 0.44% of its
capital stock and voting rights, granted by Camuzzi Argentina S.A.
in favor of Banco de Valores S.A., acting in its capacity as
collateral agent to secure Camuzzi's guarantee of payments due
under the Old Notes. Moreover, Camuzzi jointly and severally
guaranteed the payment of interest under the Old Notes by
executing a commercial guarantee.
The holders of the Old Notes had the following options under the
IEBA APE:
(i) Exchange Option: (a) for each $1.00 in nominal value of the
Series C Notes properly tendered (and not validly
withdrawn), holders will receive $1.00 nominal value of the
Series E Notes due 2022, and (b) for each $1.00 in nominal
value of the Series D Notes properly tendered (and not
validly withdrawn), holders will receive $1.00 nominal value
of the Series F Notes due 2022. Each of the creditors
who would select, or would have been allocated to, the
Exchange Option would be deemed to have irrevocably waived
and relinquished, as applicable, any rights and claims
against Camuzzi under the Guarantee. The New Notes will
bear interest from Dec. 26, 2014, and no accrued interest
will be paid in respect of the Old Notes under the
Exchange Option.
(ii) Cash Option: for each $1.00 in nominal value of Old Notes
properly tendered (and not validly withdrawn), holders will
receive a cash payment equal to the sum of $0.43 plus the
Cash Option Interest. IEBA intended to cancel $60.0 million
of the outstanding principal amount of its Old Notes through
the Cash Option, at a total cost, funded by both IEBA
and Camuzzi, of $25.8 million plus the Cash Option Interest.
In case of over subscription of the Cash Option, the IEBA
APE reserved the right, in IEBA's sole discretion, to
increase the Cash Option Fixed Amount. Cash Option Interest
in respect of the Old Notes will be paid at the rate of 9%
per annum as accrued from and after Dec. 26, 2014.
The New Notes will be secured by:
(i) a pledge on a portion of IEBA's shares representing 10.56%
of IEBA's capital stock and voting rights, held by BAECO;
(ii) a pledge on a portion of IEBA's shares representing 0.44% of
IEBA's capital stock and voting rights, held by IEPSA;
(iii) a pledge of a portion of the shares in BAECO's capital stock
held by IEPSA, which at all times would represent, together
with the shares pledged pursuant to paragraphs (i) and (ii)
above, a combined direct and indirect ownership interest of
49% of the aggregate equity interest held collectively by
BAECO, IEPSA and/or their affiliates in IEBA (including,
without limitation, any shares of IEBA that may be acquired
in the future by BAECO, IEPSA and/or their affiliates,
pursuant to a public tender offer or otherwise); and
(iv) an assignment in trust to a trustee to be appointed by
IEBA, for the benefit of the holders of New Notes, of the
right to collect dividends, fees (including management
fees) or payments due by EDEA to IEBA.
Holders of Old Notes who failed to participate in the
solicitation, or who were ineligible to participate in the
solicitation under applicable securities laws, would receive a
combination of the Cash Option and the Exchange Option in
consideration for their Old Notes. If, however, there were to be
any creditors who are ineligible to be solicited, or who are
ineligible to receive New Notes under applicable securities law,
those creditors would receive the Cash Amount Option, and will
receive the same treatment as other creditors receiving such
option. The Debtor does not believe that United States securities
laws are applicable to the IEBA APE because the Debtor is not
aware of any creditors who are United States persons.
Request for Recognition
Substantially all of the assets of IEBA, and the subsidiary
through which it operates, are located in Argentina. However, the
Debtor currently maintains assets in the United States consisting
of property held in accounts located in New York. The U.S.
Accounts include an escrow account in New York at Bank of New York
Mellon Corporation that exists under a New York law governed
escrow agreement to which IEBA is a party. The escrow account
currently contains unclaimed Old Notes that had been issued as
part of a previous restructuring and cash interest payments in
respect of such unclaimed Old Notes. IEBA also owns cash located
in a bank account at a New York branch of Barclays Bank PLC. The
Debtor is not party to any pending litigation in the United
States.
In addition, the Debtor is party, as issuer, to that certain
indenture, dated as of Sept. 26, 2007, which governs the Old Notes
exchangeable pursuant to the IEBA APE. Under the terms of the Old
Note Indenture, the Old Notes, with limited exceptions, are
governed by New York law.
Concurrently with the Petition, the Foreign Representative has
filed a motion with the Bankruptcy Court seeking recognition in
the United States of the Foreign Proceeding as a foreign main
proceeding pursuant to Section 1517 of the Bankruptcy Code. The
motion seeks recognition and enforcement within the territorial
jurisdiction of the United States, the Homologation Order and its
endorsement of the IEBA APE and to permanently enjoin all parties
from commencing or taking any action in the United States to
obtain possession of, exercise control over, or assert claims
against the Debtor or its property.
"Recognition and enforcement of the IEBA APE proceeding within the
territorial jurisdiction of the United States is of major
significance. Indeed, chapter 15 recognition and enforcement
would ensure the success of the Foreign Proceeding," Mr. Barba
maintained.
According to Mr. Barba, recognition and enforcement under Chapter
15 also will ensure that no creditors would be able to disrupt the
Debtor by potentially seeking in the future to enforce discharged
obligations against the Debtor.
A full-text copy of the declaration in support of the Chapter 15
petition is available for free at:
http://bankrupt.com/misc/2_INVERSORA_Declaration.pdf
YPF SOCIEDAD: Moody's Rates B3 Rating to Proposed $325MM Notes
--------------------------------------------------------------
Moody's Investors Service assigned a B3 global foreign currency
rating to YPF Sociedad Anonima (YPF)'s proposed $325 million
notes, a reopening of the company's $1,325 million notes due April
2024. The proceeds of the new notes will be used to repay YPF's
local notes maturing between 2016 and 2017.
The outlook on the ratings is stable.
RATINGS RATIONALE
YPF's B3 rating is based on the company's status as the largest
industrial corporation and energy company in Argentina with
sizeable oil and gas reserves, including large shale resources.
YPF's ratings also incorporate Moody's belief that although credit
metrics will deteriorate during 2016, given the adverse operating
environment, they will remain strong for the rating category.
Moody's will closely monitor the company's ability to adapt to the
new environment, following the 12% decrease in local oil prices in
Argentina earlier this year and still uncertain policies for the
energy sector, on top of a rigid cost structure due to the
Argentine labor dynamics that impact YPF's cash flow generation.
Since YPF is majority owned and controlled by the Argentine
government, its B3 ratings reflect the application of Moody's
joint default rating methodology for government-related issuers
(GRIs). YPF's rating combines its underlying b3 Baseline Credit
Assessment (BCA), which expresses a company's intrinsic credit
risk; the B3 local currency rating and stable outlook of the
Argentine government; and Moody's view of moderate support from
and high dependence on the sovereign. While YPF is expected to
account for only a small part of the government's revenue base,
the high default dependence reflects the high correlation between
YPF's credit profile and Argentine economic trends. YPF derives
the majority of its revenues domestically; also, the company and
the government both share common exposure to foreign exchange rate
risk and inflation, to name a few. Moody's assumes a moderate
support probability by the government to YPF given the close
relationship between the two since the company is majority owned
and controlled by the first. However, the government's ability to
provide support to YPF in case of need is weak, evidenced by its
B3 local currency rating and stable outlook.
Moody's considers YPF's liquidity profile as weak. YPF's cash
balances as of June 30, 2016 were $1.0 billion. In July, YPF
collected $630 in sovereign bonds related to 2015 subsidies and
issued $750 million in notes. Later, in September, it issued an
additional $300 million in notes. These events will provide
cushion to the company's liquidity for the remainder of the year
vis-a-vis the $2.2 billion debt coming due from June 2016 to the
end of 2017. Much of this amount is owed to local market
participants and Moody's believes that a large portion of it could
be rolled over relatively easily. Most of the company's cash is
held in US dollars in bank accounts in Argentina. The company has
demonstrated successful access to both local and international
markets to conduct liability managements; so far in 2016, YPF
would have raised close to $3.1 billion in debt, including the
proposed issuance. Moody's expects the company to raise $1.5
billion in debt in 2017 in order to finance debt maturities and to
fund negative free cash flow, despite reducing its important capex
program by 25% in 2016. It is yet to be seen how additional capex
cuts could impact YPF's production; however, Moody's believes that
past investments in technology and reserve replacement could
somewhat mitigate the negative impact in the short term.
YPF's internal, publicly-stated net leverage target is 1.5x,
although this ratio will be higher during 2016 to reach about
2.2x, as per Moody's estimates, given lower local oil prices and
delays by the government to pay subsidies. YPF believes it can
reverse this trend by cashing in government subsidies as scheduled
and passing through inflation and foreign exchange devaluation to
final prices, but current economic conditions may post resistance
to elevated price increases. For these reasons, Moody's believes
that YPF's leverage will remain above management's target until at
least 2017.
YPF has a weak export profile, as it exports only around 10% of
revenues per year. The company's foreign currency risk is
currently high as 77% of its debt, 40% of its capital spending 40%
of its operating costs are linked to the US dollar, which compares
to the 40% of the company's revenue generated in US currency. YPF
usually holds $1 billion in cash but it can easily operate with
half of that.
YPF's stable outlook assumes that the Argentine government has
incentives to maintain prices of crude and oil products at a level
that makes it economically attractive for oil companies to invest
to increase production and reduce the country's dependence on
imports of oil products and natural gas.
Continued growth in total production while maintaining strong
margins and relatively low leverage could lead to an upgrade of
YPF's BCA. Over the medium term, an improvement in Argentina's B3
rating and continued demonstration of a strong financial track
record could result in a ratings upgrade. However, a rating
upgrade will depend on a clearer view of the new government's
energy policies for the next several years and how that could
affect YPF.
Conversely, YPF's ratings could be downgraded if it is unable to
maintain sufficient liquidity and access to foreign currency in
order to meet its debt service obligations. The ratings could also
be downgraded if the government of Argentina's B3 rating were to
be downgraded.
YPF is 51% owned by the Argentine government and had revenues of
$15.1 billion and total assets of $28.2 billion for the twelve
months ending June 30, 2016. During 2015, the company generated
96% of its revenues in Argentina; its operations outside of the
country include the United States, Brazil and Chile.
The principal methodology used in this rating was Global
Integrated Oil & Gas Industry published in October 2016. Other
methodologies used include the Government-Related Issuers
methodology published in October 2014.
===========
B R A Z I L
============
JBS SA: Fitch Affirms 'BB+' IDR; Outlook Stable
-----------------------------------------------
Fitch Ratings has affirmed JBS S.A.'s foreign and local currency
Issuer Default Ratings and senior unsecured notes at 'BB+'. Fitch
has also affirmed the company's National Scale rating at
'AA+(bra)'.
The Rating Outlook for JBS is Stable.
JBS' 'BB+' rating reflects its strong business profile and Fitch's
expectation that the company will deleverage in the next 18
months.
KEY RATING DRIVERS
Solid Business Profile:
JBS' ratings are supported by its strong business profile as the
world's largest beef and leather producer and its diversification
in chicken, beef, pork and prepared food. The company's product
and geographic diversification help mitigate risks related to
disease and trade restrictions. Fitch estimates that
approximately 70% of net revenues are generated from JBS'
operations outside Brazil, primarily in the U.S., Australia,
Canada and Europe. Exports represented about 28% of group sales
in 2Q16.
Challenging Environment:
2016 is a difficult year for the Brazilian protein sector due to
the sharp increase in corn prices in the first half of the year,
high cattle prices, and weak economic conditions. The
strengthening of the Brazilian real in the first half of 2016 and
abundant poultry supply have also pressured Seara's exports prices
and margins. In 2017, pricing should improve and the company
should have more favourable cattle conditions. Asia and the
Middle East have remained positive growth drivers during 2016.
Fitch expects JBS beef operations in the U.S. to gradually improve
its profitably thanks to increased cattle availability and demand
for exports. JBS' pork business remains solid, and low grain
prices in the U.S. should continue to support profitability in the
company's U.S. chicken division.
High Leverage:
Fitch expects JBS' ratio of net debt/EBITDA adjusted for dividends
paid to minorities to peak at about 4.7x by the end of 2016 from
3.9x in 2015. 2016 results were not only hurt by weak cash flow
but also by dividends and share buybacks totaling BRL2.5 billion
in 1H16. JBS also registered a net loss on derivatives of about
BRL6 billion as the company unwound its hedging position related
to FX position in 1H16. Fitch expects net leverage ratios to move
toward 3.5x in 2017, which is in line with the rating level, due
to improved profitability at Seara and JBS USA beef.
U.S. Listing and Acquisitions:
In its base case, Fitch does not factor any large debt-financed
acquisition over the next 18 months, as JBS management aims to
list the group on the NYSE and is focused on deleveraging the
company after having spent about BRL15.5 billion in acquisitions
in 2015. Nevertheless, acquisition risk in the medium term is
above average, as Fitch expects the company to continue to pursue
inorganic growth. The proposed reorganization entails a transfer
of JBS S.A.'s assets, excluding the Brazil beef and leather
operations and other activities (i.e. biodiesel, collagen, carrier
businesses), to a new holding company called JBS Foods
International. The bonds at JBS SA will be transferred to a newly
created holdco registered in Europe. Post-reorganization, the
company will report its financials in U.S. dollar. An aim of the
reorganization is to lower the company's cost of capital. Fitch
sees this reorganization (as currently proposed) as neutral for
the ratings.
KEY ASSUMPTIONS
-- High single digit revenues growth thanks to the acquisitions
made in 2015;
-- EBITDA margin reduction because of higher raw material costs
and the strengthening of the real against the U.S. dollar;
-- Net debt/ EBITDA (including dividends paid to minorities)
moving toward 3.5x in 2017.
RATING SENSITIVITIES
A downgrade could be precipitated by an increase in JBS' net
debt/EBITDA (post dividends to minorities) above 3.5x-4.0x on a
sustained basis due to a sharp contraction of its operating
margins, negative FCF generation, and/or significant debt-funded
acquisitions.
An upgrade could result from the company's consistent positive FCF
generation and resilience of its operating margins, backed by
business diversification, leading to its net leverage ratio
falling toward or below 2.5x on a sustained basis.
LIQUIDITY
JBS liquidity is supported by its cash balance and committed
undrawn bank lines. As of June 30, 2016, the company had
BRL8.5 billion of cash and cash equivalent and short-term debt of
BRL18.4 billion (mostly trade finance debt). Also, JBS USA had
USD1.4 billion fully committed available lines. Fitch expects JBS
to report neutral to negative FCF in 2016 because of lower EBITDA
due to pressure in raw material costs and the subdued performance
of the U.S. Beef business in 1H16.
FULL LIST OF RATING ACTIONS
Fitch has affirmed these ratings:
JBS S.A.:
-- Foreign & local currency IDR at 'BB+';
-- National Scale rating at 'AA+ (bra)'.
JBS USA Lux S.A.:
-- Foreign and local currency IDR at 'BB+;
-- Term loan B facility due in 2018 to 'BBB-';
-- Notes due 2020, 2021 at 'BB+'.
JBS USA Finance, Inc:
-- Notes due 2020, 2021 at 'BB+'.
JBS Investments GmbH
-- Notes due 2020, 2023, 2024 at 'BB+'.
PETROLEO BRASILEIRO: Discloses New Pricing for Gas, Diesel
----------------------------------------------------------
EFE News reports that Brazilian state-run oil company Petroleo
Brasileiro S.A. discloses a new pricing policy for gasoline and
diesel that is likely to be reflected in an initial drop in prices
at the pump.
The board of directors approved on Thursday, Cot. 13 an average
3.2 percent reduction in wholesale gas prices and a 2.7 percent
cut for diesel, Petrobras said in a regulatory filing, according
to EFE News.
How much of a break motorists get at the pump will depend on
decisions made by fuel distributors, sources at Petrobras said,
while suggesting that retail prices could dip by as much as 1.4
percent for gasoline and 1.8 percent for diesel fuel, the report
says.
"The new policy will be based, primarily, on international
prices," Petrobras Chief Executive Officer Pedro Parente told a
press conference in Rio de Janeiro, adding that the company will
review market conditions "at least once a month" and make any
necessary adjustments, the report notes.
The goal of the new system is to ensure that Petrobras' wholesale
prices do not fall below the prevailing international levels, the
firm's director for refining and natural gas, Jorge Celestino,
said, the report relays.
"Our prices today are above that line, so the reduction we are
implementing will not hurt the company," Mr. Parente said, the
report notes.
Petrobras, Brazil's largest enterprise, is engaged in a major
overhaul involving asset sales and a cutback in capital spending
to cope with the drop in international oil prices and the
consequences of a corruption scandal that cost the firm an
estimated $2 billion, the report adds.
As reported in the Troubled Company Reporter -- Latin America on
Aug. 1, 2016, S&P Global Ratings affirmed its 'B+' global scale
ratings on Petroleo Brasileiro S.A. -- Petrobras (Petrobras),
including its corporate credit ratings and the ratings on the
senior unsecured notes issued through Petrobras International
Finance Co. and Petrobras Global Finance B.V.
===========================
C A Y M A N I S L A N D S
===========================
ALGO K CURRENCY: Placed Under Voluntary Wind-Up
-----------------------------------------------
On Sept. 15, 2016, the sole shareholder of Algo K Currency Fund
SPC 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:
Maitland Administration Limited
90 Fort Street, 5th Floor
George Town Financial Center
P.O. Box 259 Grand Cayman KY1-1104
Cayman Islands
BANK OF SCOTLAND (CAYMAN): Creditors' Proofs of Debt Due Dec. 10
-----------------------------------------------------------------
The creditors of Bank of Scotland Hong Kong Nominees Limited are
required to file their proofs of debt by Dec. 10, 2016, to be
included in the company's dividend distribution.
The liquidator can be reached at:
Bank of Scotland Hong Kong Nominees Limited
c/o One Island East, 62nd Floor
18 Westlands Road, Island East
Hong Kong
BANK OF SCOTLAND HONG KONG: Creditors' Proofs of Debt Due Dec. 10
-----------------------------------------------------------------
The creditors of Bank of Scotland Hong Kong Nominees Limited are
required to file their proofs of debt by Dec. 10, 2016, to be
included in the company's dividend distribution.
The liquidator can be reached at:
Bank of Scotland Hong Kong Nominees Limited
c/o One Island East, 62nd Floor
18 Westlands Road, Island East
Hong Kong
BLACKSTONE VRF: Commences Liquidation Proceedings
-------------------------------------------------
On Sept. 13, 2016, the sole shareholder of Blackstone VRF
Intermediate 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
FALCON HOLDINGS: Creditors' Proofs of Debt Due Nov. 7
-----------------------------------------------------
The creditors of Falcon Holdings IV Inc. are required to file
their proofs of debt by Nov. 7, 2016, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Sept. 20, 2016.
The company's liquidator is:
Christopher Smith
c/o Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 31237 Grand Cayman KY1-1205
Cayman Islands
Telephone: (345) 947 4700
GLOBAL TAIWAN: Creditors' Proofs of Debt Due Nov. 7
---------------------------------------------------
The creditors of Global Taiwan Investments Ltd are required to
file their proofs of debt by Nov. 7, 2016, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Sept. 20, 2016.
The company's liquidator is:
Christopher Smith
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 31237 Grand Cayman KY1-1205
Cayman Islands
Telephone: (345) 947 4700
HBM BIOMEDICINE: Commences Liquidation Proceedings
--------------------------------------------------
On Sept. 21, 2016, the sole shareholder of HBM Biomedicine
(Cayman) 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:
HMS Cayman Ltd.
10 market Street, Suite 140, Camana Bay
Grand Cayman, KY1-9006
Cayman Islands
c/o Beverly Lorimer
Telephone: (345) 746 2255
MAP MARINE: Creditors to Hold First Meeting on Oct. 25
------------------------------------------------------
The creditors of Map Marine Limited will hold their first meeting
on Oct. 25, 2016, at 6:00 p.m., to elect a liquidation committee
and deal with other matters.
Creditors are required to file their proofs of debt by Oct. 24,
2016, to be included in the company's dividend distribution.
The company's liquidator is:
Tammy Fu
Zolfo Cooper, 2nd Floor
38 Market Street, Canella Court, Camana Bay
Grand Cayman KY1-9006
Cayman Islands
c/o Cassandra Ronaldson
Telephone: +1 (345) 814 4038
OLD PARK: Court Enters Wind-Up Order
-------------------------------------
On Sept. 14, 2016, the Grand Court of Cayman Islands entered an
order to wind up the operations of Old Park Capital Maestro Fund
Limited.
The company's liquidators are:
Matthew Wright
Christopher Kennedy
RHSW (Cayman) Limited
PO Box 897, Windward 1
Regatta Office Park, West Bay Road
Grand Cayman KY1-1103
Cayman Islands
SAB OVERSEAS: Creditors' Proofs of Debt Due Oct. 31
---------------------------------------------------
The creditors of SAB Overseas Holdings V, Limited are required to
file their proofs of debt by Oct. 31, 2016, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Sept. 20, 2016.
The company's liquidator is:
Gene Dacosta
Telephone: (345) 814 7765
Facsimile: (345) 945 3902
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
STABLE ALPHA: Creditors' Proofs of Debt Due Nov. 4
--------------------------------------------------
The creditors of Stable Alpha (SC) Ltd. are required to file their
proofs of debt by Nov. 4, 2016, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Sept. 20, 2016.
The company's liquidator is:
Matthew Wright
c/o Omar Grant
P.O. Box 897 Windward 1
Regatta Office Park
Grand Cayman KY1-1103
Cayman Islands
Telephone: (345) 949 7576
Facsimile: (345) 949 8295
TE&K INTERNATIONAL: Creditors' Proofs of Debt Due Oct. 31
---------------------------------------------------------
The creditors of TE&K International Trading 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 Aug. 17, 2016.
The company's liquidator is:
Joeri Groot
c/o Avril G Brophy
P.O. Box 1111 Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 949 5122
Facsimile: (345) 949 7920
TRIANGULAR QUA: Commences Liquidation Proceedings
-------------------------------------------------
On Sept. 21, 2016, the sole shareholder of Triangular Qua 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:
Alun Davies
Walkers
190 Elgin Avenue, George Town
Grand Cayman KY1-9001
Cayman Islands
Telephone: (345) 914 6365
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Officials Butt Heads Over 'Scarce' Dollars
--------------------------------------------------------------
Dominican Today reports that the government's two most important
financial officials have openly contradicted each other over a
reported widespread scarcity of dollars to cover the market's
demand.
Central Banker Hector Valdez Albizu debunked Economy minister
Isidoro Santana's argument that the country doesn't produce enough
dollars to meet the productive sectors' demand, according to
Dominican Today.
Mr. Valdez said contrary to Santana's assertion, the Dominican
economy does produce enough dollars to meet the demand for
investors, importers and hard currency commitments, the report
notes.
The contradiction was likely the main topic during Mr. Valdez's
meeting with president Danilo Medina at the National Palace,
precisely where reporters asked him to respond to Santana's
statement, the report relays. "I was very surprised," Mr. Valdez
said, the report relays.
As an example of the availability of dollars, the official said
exchange brokers bought nearly US$1.3 billion in the market just
in the first 11 days of October, and sold around US$1.0 billion,
the report notes. "This results in volumes traded in the exchange
market for buying and selling more US$100 million per day," he
added.
Valdez added that bank records reveal the availability of foreign
exchange for some US$1.2 billion to that same date.
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.
DOMINICAN REPUBLIC: Doesn't Make Enough Dollars to Meet Demand
--------------------------------------------------------------
Dominican Today reports that Economy Minister Isidoro Santana
acknowledged that the Dominican economy doesn't produce enough
dollars to meet the demand by productive sectors and affirmed that
the current economic model is obsolete.
"It's been quite a long since the country does not produce the
necessary dollars; it's a major importer of capital and that's why
certain situations arise," the report quoted Mr. Santana as
saying.
Mr. Santana responded to insistent complaints of scarce dollars by
Herrera Industrial Association (AEIH) president Antonio Taveras,
the report notes.
The report says that Mr. Santana said he agrees with Taveras on
the need to change the country's production model to respond to
that situation.
Mr. Santana noted however that it requires institutional
transformation and introducing major changes in policies, the
report discloses. "We will work for that," he added.
Mr. Taveras and Mr. Santana spoke with journalists at a meeting
hosted by the AEIH to discuss the points included in the proposed
tax reform, the report relays.
"We want to develop our proposed tax revolution to present it when
the call is made," the report quoted Mr. Taveras as saying.
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.
DOMINICAN REPUBLIC: Brazil Funding Freeze Won't Affect Works
------------------------------------------------------------
Dominican Today reports that the Chief Executive Officer of
Dominican Republic's State-owned electric utility (CDEEE) said the
measures taken by Brazil State-owned bank (BNDES) won't affect the
works financed in Dominican Republic.
Ruben Jimenez Bichara said however the projects on course will be
reviewed, according to Dominican Today.
BNDES announced it suspended disbursements on loans to
construction companies investigated for corruption in the
financing of infrastructure projects in nine countries, among them
Dominican Republic, the report notes.
The report relays that Brazil's biggest construction companies;
Odebrecht, OAS, Andrade Gutierrez, Queiroz Galvao and Camargo
Correa are all being investigated in connection with the Petrobras
corruption scandal.
BNDES will reportedly analyzed contracts individually to identify
possible corruption and the right to unilaterally cancel contracts
if irregularities are found, the report relays.
The bank's evaluation will also take into account other factors,
including the progress of the works as well as the level of
disbursement of funds from other lenders, the report discloses.
The bank said despite the suspended payments, which was decided
last May, none of the projects had liquidity problems that have
led them to incur defaults, the report notes.
"They're going to do a review of what they have there, prior to
reactivating those disbursements. This is a general measure to
defend them and start the process," said Jimenez Bichara,
interviewed by newspaper Listin Diario, the report relays.
"So far we haven't any information that "we're going to be
punished," the official said, and stressed that an investigation
wouldn't affect any of the projects, including Punta Catalina
coal-fired power plants," Mr. Bichara added.
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.
=====================
E L S A L V A D O R
=====================
EL SALVADOR: S&P Lowers Sovereign Credit Rating to 'B'
------------------------------------------------------
S&P Global Ratings lowered its long-term sovereign credit ratings
on the Republic of El Salvador to 'B' from 'B+'. The short-term
sovereign ratings are unchanged at 'B'. The ratings on El
Salvador remain on CreditWatch with negative implications. The
'AAA' transfer and convertibility assessment is unchanged.
RATIONALE
The downgrade reflects deterioration in S&P's assessment of El
Salvador's institutional and governance effectiveness, which has
contributed to a weaker external profile, and a further erosion of
the government's liquidity position.
Continued political stalemate between the governing party Frente
Farabundo Marti para la Liberacion Nacional and the main
opposition party ARENA (Alianza Republicana Nacionalista) has
blocked progress on fiscal and pension reform, undermining
investor confidence. It has also imposed a heavy cost on
financial management by weakening the government's ability to
raise added revenues and to manage its debt.
There has not been consensus from a qualified majority in Congress
to approve the issuance of external debt due to opposition from
ARENA. As a result, it has accumulated around $1 billion in
short-term locally issued debt (called LETES), approaching the
constitutional limit of $1.3 billion.
S&P projects that the current account deficit is likely to exceed
3% of GDP in the next three years, contributing to weaker external
liquidity. S&P projects that the country's gross external
financing needs will exceed 100% of current account receipts and
usable reserves in the next couple of years. Net general
government debt is likely to approach 60% of GDP in 2018, compared
with less than 55% of GDP in 2013.
Political differences have blocked reform of El Salvador's pension
system, whose persistently weak finances have contributed to
growing government debt. The pension system deficit, around 2% of
GDP, has accounted for about half or more of the government's
fiscal deficit in recent years.
Lack of liquidity recently led the government to direct the
Fideicomiso de Obligaciones Previsionales, a trust managed by
BANDESAL, the country's development bank, to fund its maturing
obligations to the country's private-sector pension funds by
issuing debt (certificates of pension investment, CIP) instead of
paying with cash. Such steps provide only short-term relief.
Pension fund holdings of CIPs are currently around 41% of their
total assets, but the funds are limited to holding only up to 45%
of their portfolio in such assets.
S&P's ratings on El Salvador reflect limited fiscal flexibility,
lack of monetary flexibility, and low per capita income (estimated
at just above $4,300 in 2016). S&P believes that the government
has limited ability to raise additional revenues and that the
country suffers from a shortfall in basic services and
infrastructure. El Salvador lacks its own currency and has
forgone having a lender of last resort for its banking system.
CREDITWATCH
S&P expects to resolve the CreditWatch listing by the end of this
year, based on the outcome of political negotiations between the
government and political parties in Congress. S&P could lower the
rating if political stalemate were to continue, further weakening
the government's debt burden and its access to liquidity.
Conversely, S&P could affirm the ratings at their current level if
successful negotiations contain the deterioration in fiscal policy
and financial management, thereby improving the government's
liquidity position and debt management in the short term and
stabilizing its debt burden over the long term.
In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable. At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee by
the primary analyst had been distributed in a timely manner and
was sufficient for Committee members to make an informed decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.
The committee agreed that "institutional and governance
effectiveness risk" had deteriorated. All other key rating
factors were unchanged.
The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.
RATINGS LIST
Downgraded; Ratings Remain on CreditWatch
To From
El Salvador (Republic of)
Sovereign Credit Rating B/Watch Neg/B B+/Watch Neg/B
Senior Unsecured B/Watch Neg B+/Watch Neg
======================
P U E R T O R I C O
======================
BAHIA SALINAS: Seeks to Hire Lozada Law as Legal Counsel
--------------------------------------------------------
Bahia Salinas Beach Hotel Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire Lozada
Law & Associates, LLC.
The firm will serve as the Debtor's legal counsel in connection
with its Chapter 11 case.
Maria Soledad Lozada-Figueroa, Esq., the attorney designated to
represent the Debtor, will be paid $200 per hour. Meanwhile, the
hourly rate of other Lozada partners and associates is $150.
In a court filing, Ms. Lozada-Figueroa disclosed that the members
of her firm are "disinterested persons" as defined in section
101(14) of the Bankruptcy Code.
The firm can be reached through:
Maria Soledad Lozada Figueroa, Esq.
Lozada Law & Associates, LLC
P.O. Box 9023888
San Juan, PR 00902-3888
Cell: (787) 533-1400
Email: msl@lozadalaw.com
About Bahia Salinas Beach Hotel
Bahia Salinas Beach Hotel Inc. sought protection under Chapter 11
of the Bankruptcy Code (Bankr. D.P.R. Case No. 16-07573) on
September 22, 2016. The petition was signed by Angel Lopez Nunci,
president.
At the time of the filing, the Debtor estimated assets of less
than $1 million and liabilities of $1 million to $10 million.
MANUEL BABILONIA: Stipulation With BofA, Sale May Impact Value
--------------------------------------------------------------
Manuel Babilonia and Mirta Cortes fine-tuned their Disclosure
Statement ahead of a hearing scheduled for Oct. 26, 2016.
The holders of unsecured claims may receive any dividends or
payment in the plan from proceeds generated from the normal course
of operation of Debtor's hostel Business, Home Away income and
other income. The Debtor will dedicate all available income to
pay unsecured claims after operating expenses and payment to
secured claimants. General unsecured creditors are impaired under
the Plan, and thus have a right to vote in favor or against the
Plan.
The Amended Disclosure Statement notes of an ALTERNATIVE SCENARIO,
once the matter regarding the payment to the secured claimant
Banco Popular, be, through the reduction of the secured claims due
to the sale of all or certain of the properties encumbered or the
acceptance of the properties in payment of the allowed secured
claim. The unsecured creditors will receive dividend payments
from the Debtor's salary and the proceeds from the Hostel
Business.
According to the Liquidation Analysis, the liquidation value of
the Estate is $4,000,000. This Liquidation Analysis may change
substantially depending on the outcome of the terms of the
stipulation with Banco Popular and if the properties are sold or
turnover. Upon the sale or turnover of any of the properties, the
Debtor will submit a Liquidation Analysis that will reflect the
changes in the value of the Estate and its effect on distribution
to unsecured claimants.
The Debtors disclosed total assets of $5,620,000. The Debtor
disclosed only total liabilities of $1,559,766, with unsecured
claims totaling $63,182.
A copy of the Amended Disclosure Statement is available for free
at http://bankrupt.com/misc/prb16-01148_Am_DS_Babilonia.pdf
About Manuel Babilonia
Manuel Babilonia and Mirta Cortes manage a motel business, which
is incorporated and doing business as Motel Tropical Inc., a
related entity that filed for relief on Feb. 11, 2016 (Bankr.
D.P.R. Case No. 16-00966). There is also another related entity
which filed for protection B & D Enterprises S.E. (Bankr. D.P.R.
Case No. 16-00978). Ms. Cortes presently rents out her home under
the Home Away programs. In it personal capacity Mr. Babilonia
also has a Hostel comprising of six rooms which are rented on
short term basis.
Following a foreclosure proceeding filed by Banco Popular, Mr.
Babilonia and Mirta Cortes filed for Chapter 11 bankruptcy
protection (Bankr. D.P.R. Case No. 16-01148) on Feb. 18, 2016.
The Debtor's counsel, Garcia-Arregui & Fullana PSC, was appointed
per order dated April, 22, 2016.
The 11 U.S.C. Sec. 341 hearing was held and closed on April 12,
2016.
VACA BRAVA: Taps Albert Tamarez-Vasquez as Financial Advisor
------------------------------------------------------------
Vaca Brava Old San Juan LLC seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire a
financial advisor in connection with its Chapter 11 case.
The Debtor proposes to hire Albert Tamarez-Vasquez, a certified
insolvency and restructuring advisor, and pay him $150 per hour
for his services.
Mr. Tamarez-Vasquez will assist the Debtor in the tax
investigation initiated by the PR Department of Treasury, and in
the preparation of supporting documents for its Chapter 11 plan of
reorganization.
In a court filing, Mr. Tamarez-Vasquez disclosed that he is
"disinterested" as defined in section 101(14) of the Bankruptcy
Code.
Mr. Tamarez-Vasquez's contact information is:
Albert Tamarez-Vasquez, CPA, CIRA
First Federal Saving Building
1519 Ave. Ponce de Leon, Suite 412
San Juan, PR 00909-1713
Phone: (787) 795-2855
Fax: (787) 200-7912
Email: atamarez@tamarezcpa.com
About Vaca Brava
Vaca Brava Old San Juan LLC sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D.P.R. Case No. 15-09787) on December
10, 2015. The petition was signed by Juan Cintron Berrios,
president.
At the time of the filing, the Debtor estimated assets and
liabilities of less than $500,000.
=================
X X X X X X X X X
=================
LATIN AMERICA: Bucking Global Protectionist Trend, Ministers Say
----------------------------------------------------------------
John Quigley at Bloomberg News reports that Latin American nations
will press ahead with effort to integrate their economies and
won't fall victim to the growing protectionist trend in developed
countries, finance ministers said.
The Pacific Alliance pact between Chile, Colombia, Mexico and Peru
to integrate their economies will support growth in the region as
isolationist trends take hold in Europe and the U.S., Colombian
Finance Minister Mauricio Cardenas said on a panel at a World Bank
event in Washington, according to Bloomberg News.
Originally formed in response to the commodity bust, the Pacific
Alliance program to remove restrictions on trade and capital flows
will also help their economies in the face of a "wave of
protectionism" represented by Britain's vote to leave the European
Union, said Minister Cardenas, Bloomberg News notes.
Argentine Finance Minister Alfonso Prat-Gay, said deepening
economic integration in Latin America is bolstered by language and
cultural ties, adding Argentina hopes to join the Pacific
Alliance, Bloomberg News says.
"This is a lesson we can start giving the world as we integrate
more," Bloomberg News quoted Mr. Prat-Gay as saying.
Mr. Prat-Gay joked that he looked forward to joining a WhatsApp
chat that the finance ministers within the Pacific Alliance use to
comment on policy developments in their countries, Bloomberg News
notes.
"Once I get there, it will be a good sign," Mr. Prat-Gay added.
* BOND PRICING: For the Week From Oct. 10 to Oct. 14, 2016
----------------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
Andino Investment Holding 11 70.85 11/13/2020 PE USD
Andino Investment Holding 11 68.88 11/13/2020 PE USD
Anton Oilfield Services G 7.5 69.03 11/6/2018 CN USD
Anton Oilfield Services G 7.5 66 11/6/2018 CN USD
BA-CA Finance Cayman 2 Lt 0.719 38.5 KY EUR
BA-CA Finance Cayman Ltd 0.749 38.93 KY EUR
Banco do Brasil SA/Cayman 6.25 62.84 KY USD
Banco do Brasil SA/Cayman 6.25 59.51 KY USD
BPI Capital Finance Ltd 2.29 40 KY EUR
CA La Electricidad de Car 8.5 43.75 4/10/2018 VE USD
Chile Government Internat 3.625 15.7 10/30/2042 CL USD
CSN Islands XI Corp 6.875 61.25 9/21/2019 KY USD
CSN Islands XI Corp 6.875 61.13 9/21/2019 KY USD
CSN Islands XII Corp 7 48.8 BR USD
CSN Islands XII Corp 7 47.75 BR USD
Decimo Primer Fideicomiso 4.54 59.75 10/25/2041 PA USD
Decimo Primer Fideicomiso 6 71.38 10/25/2041 PA USD
Ecuador Government Domest 8.45 70.8 2/6/2034 EC USD
Ecuador Government Domest 8.45 69.35 9/10/2034 EC USD
Ecuador Government Domest 8.45 70.42 4/2/2034 EC USD
Ecuador Government Domest 8.45 69.72 7/17/2034 EC USD
Ecuador Government Domest 8.45 69.71 5/30/2034 EC USD
Ecuador Government Domest 8.45 69.23 9/30/2034 EC USD
Ecuador Government Domest 8.45 70.52 3/19/2034 EC USD
Ecuador Government Domest 7.75 74.84 12/19/2028 EC USD
Ecuador Government Domest 8.45 69.94 6/12/2034 EC USD
Ecuador Government Domest 8.45 69.95 6/11/2034 EC USD
Ecuador Government Domest 8.45 69.82 7/1/2034 EC USD
Ecuador Government Domest 7.7 73.56 7/1/2029 EC USD
Ecuador Government Domest 7.7 72.94 9/10/2029 EC USD
Ecuador Government Domest 7.75 74.95 11/8/2028 EC USD
Ecuador Government Domest 7.7 73.74 6/11/2029 EC USD
Ecuador Government Domest 7.7 73.73 6/12/2029 EC USD
Ecuador Government Domest 7.7 72.77 9/30/2029 EC USD
Empresa de Telecomunicaci 7 71.24 1/17/2023 CO COP
Empresa de Telecomunicaci 7 71.24 1/17/2023 CO COP
ESFG International Ltd 5.753 0.883 KY EUR
General Exploration Partn 11.5 36.75 11/13/2018 CA USD
General Shopping Finance 10 60.55 KY USD
General Shopping Finance 10 60.63 KY USD
Global A&T Electronics Lt 10 70.88 2/1/2019 SG USD
Global A&T Electronics Lt 10 71.88 2/1/2019 SG USD
Global A&T Electronics Lt 10 50.5 2/1/2019 SG USD
Global A&T Electronics Lt 10 54 2/1/2019 SG USD
Glorious Property Holding 13.25 74.56 3/4/2018 HK USD
Gol Finance Inc 9.25 47.35 7/20/2020 BR USD
Gol Finance Inc 8.75 37.75 BR USD
Gol Finance Inc 7.5 61 4/3/2017 BR USD
Gol Finance Inc 7.5 59.38 4/3/2017 BR USD
Gol Finance Inc 7.5 59.38 4/3/2017 BR USD
Gol Finance Inc 9.25 43.38 7/20/2020 BR USD
Gol Finance Inc 8.75 36.88 BR USD
Green Dragon Gas Ltd 10 63.75 11/20/2017 HK USD
Greenfields Petroleum Cor 9 11.35 5/31/2017 US CAD
Honghua Group Ltd 7.45 58.25 9/25/2019 CN USD
Honghua Group Ltd 7.45 58 9/25/2019 CN USD
Inversora Electrica de Bu 6.5 59.5 9/26/2017 AR USD
MIE Holdings Corp 7.5 67.25 4/25/2019 HK USD
MIE Holdings Corp 7.5 68.58 4/25/2019 HK USD
NB Finance Ltd/Cayman Isl 3.38 60.22 2/7/2035 KY EUR
Newland International Pro 9.5 24.13 7/3/2017 PA USD
Newland International Pro 9.5 25.13 7/3/2017 PA USD
Noble Holding Internation 6.2 65.42 8/1/2040 KY USD
Noble Holding Internation 6.05 66.38 3/1/2041 KY USD
Noble Holding Internation 5.25 64.71 3/15/2042 KY USD
Ocean Rig UDW Inc 7.25 57.75 4/1/2019 CY USD
Ocean Rig UDW Inc 7.25 55 4/1/2019 CY USD
Odebrecht Drilling Norbe 6.35 27 6/30/2021 KY USD
Odebrecht Drilling Norbe 6.35 28.5 6/30/2021 KY USD
Odebrecht Finance Ltd 7.5 40 KY USD
Odebrecht Finance Ltd 4.375 37.23 4/25/2025 KY USD
Odebrecht Finance Ltd 7.125 33.5 6/26/2042 KY USD
Odebrecht Finance Ltd 5.25 34.5 6/27/2029 KY USD
Odebrecht Finance Ltd 5.125 36 6/26/2022 KY USD
Odebrecht Finance Ltd 8.25 35 4/25/2018 KY BRL
Odebrecht Finance Ltd 7 53.5 4/21/2020 KY USD
Odebrecht Finance Ltd 6 41.51 4/5/2023 KY USD
Odebrecht Finance Ltd 5.25 36 6/27/2029 KY USD
Odebrecht Finance Ltd 4.375 36 4/25/2025 KY USD
Odebrecht Finance Ltd 7.125 33.75 6/26/2042 KY USD
Odebrecht Finance Ltd 7.5 42.5 KY USD
Odebrecht Finance Ltd 8.25 35 4/25/2018 KY BRL
Odebrecht Finance Ltd 5.125 35.38 6/26/2022 KY USD
Odebrecht Finance Ltd 6 38.88 4/5/2023 KY USD
Odebrecht Finance Ltd 7 44 4/21/2020 KY USD
Odebrecht Offshore Drilli 6.75 17 10/1/2022 KY USD
Odebrecht Offshore Drilli 6.625 17 10/1/2022 KY USD
Odebrecht Offshore Drilli 6.75 17.38 10/1/2022 KY USD
Odebrecht Offshore Drilli 6.625 17.38 10/1/2022 KY USD
Petroleos de Venezuela SA 5.25 67.5 4/12/2017 VE USD
Petroleos de Venezuela SA 12.75 56.1 2/17/2022 VE USD
Petroleos de Venezuela SA 9 49.38 11/17/2021 VE USD
Petroleos de Venezuela SA 9.75 44.57 5/17/2035 VE USD
Petroleos de Venezuela SA 6 38.5 5/16/2024 VE USD
Petroleos de Venezuela SA 6 36.75 11/15/2026 VE USD
Petroleos de Venezuela SA 5.375 37 4/12/2027 VE USD
Petroleos de Venezuela SA 5.5 36.75 4/12/2037 VE USD
Petroleos de Venezuela SA 6 32.13 10/28/2022 VE USD
Petroleos de Venezuela SA 6 36.4 11/15/2026 VE USD
Petroleos de Venezuela SA 6 35.35 5/16/2024 VE USD
Petroleos de Venezuela SA 9.75 41.7 5/17/2035 VE USD
Petroleos de Venezuela SA 9 45.25 11/17/2021 VE USD
Petroleos de Venezuela SA 12.75 46.15 2/17/2022 VE USD
Polarcus Ltd 5.6 44.93 3/30/2022 AE USD
Provincia de Rio Negro 1.6148 62 5/4/2024 AR ARS
PSOS Finance Ltd 11.75 60.13 4/23/2018 KY USD
Republic of Ecuador Minis 8.45 69.22 9/30/2034 EC USD
Republic of Ecuador Minis 7.75 74.88 12/19/2028 EC USD
Republic of Ecuador Minis 7.7 73.6 7/1/2029 EC USD
Republic of Ecuador Minis 7.75 74.99 11/8/2028 EC USD
Republic of Ecuador Minis 8.45 69.22 9/30/2034 EC USD
Republic of Ecuador Minis 7.7 73.77 6/12/2029 EC USD
Republic of Ecuador Minis 8.45 69.39 9/10/2034 EC USD
Republic of Ecuador Minis 8.45 69.75 7/17/2034 EC USD
Republic of Ecuador Minis 8.45 69.39 9/10/2034 EC USD
Republic of Ecuador Minis 7.7 72.81 9/30/2029 EC USD
Republic of Ecuador Minis 7.7 73.78 6/11/2029 EC USD
Republic of Ecuador Minis 7.7 73.6 7/1/2029 EC USD
Republic of Ecuador Minis 8.45 69.98 6/11/2034 EC USD
Republic of Ecuador Minis 8.45 69.98 6/11/2034 EC USD
Republic of Ecuador Minis 7.7 73.77 6/12/2029 EC USD
Republic of Ecuador Minis 7.7 72.99 9/10/2029 EC USD
Republic of Ecuador Minis 8.45 69.97 6/12/2034 EC USD
Republic of Ecuador Minis 7.75 74.88 12/19/2028 EC USD
Republic of Ecuador Minis 8.45 70.84 2/6/2034 EC USD
Republic of Ecuador Minis 8.45 70.55 3/19/2034 EC USD
Republic of Ecuador Minis 8.45 69.85 7/1/2034 EC USD
Republic of Ecuador Minis 8.45 70.45 4/2/2034 EC USD
Republic of Ecuador Minis 7.7 72.81 9/30/2029 EC USD
Republic of Ecuador Minis 8.45 69.75 7/17/2034 EC USD
Republic of Ecuador Minis 8.45 69.74 5/30/2034 EC USD
Republic of Ecuador Minis 8.45 69.97 6/12/2034 EC USD
Republic of Ecuador Minis 7.75 74.99 11/8/2028 EC USD
Republic of Ecuador Minis 8.45 69.85 7/1/2034 EC USD
Republic of Ecuador Minis 8.45 70.45 4/2/2034 EC USD
Republic of Ecuador Minis 8.45 69.74 5/30/2034 EC USD
Republic of Ecuador Minis 7.7 73.78 6/11/2029 EC USD
Republic of Ecuador Minis 8.45 70.84 2/6/2034 EC USD
Republic of Ecuador Minis 7.7 72.99 9/10/2029 EC USD
Republic of Ecuador Minis 8.45 70.55 3/19/2034 EC USD
Samarco Mineracao SA 4.125 37.25 11/1/2022 BR USD
Samarco Mineracao SA 5.75 36.6 10/24/2023 BR USD
Samarco Mineracao SA 5.375 35.38 9/26/2024 BR USD
Samarco Mineracao SA 4.125 37.38 11/1/2022 BR USD
Samarco Mineracao SA 5.75 39.63 10/24/2023 BR USD
Samarco Mineracao SA 5.375 37.25 9/26/2024 BR USD
Siem Offshore Inc 5.69 52.25 1/30/2018 NO NOK
Siem Offshore Inc 5.49 51.75 3/28/2019 NO NOK
Transocean Inc 5.05 74.75 10/15/2022 KY USD
Transocean Inc 6.8 63.66 3/15/2038 KY USD
Transocean Inc 7.5 65.78 4/15/2031 KY USD
Transocean Inc 9.1 70.41 12/15/2041 KY USD
Transocean Inc 7.45 74.9 4/15/2027 KY USD
Transocean Inc 8 73.55 4/15/2027 KY USD
Uruguay Notas del Tesoro 5.25 61.99 12/29/2021 UY UYU
US Capital Funding IV Ltd 0.99305 43.92 12/1/2039 KY USD
US Capital Funding IV Ltd 0.99305 43.92 12/1/2039 KY USD
Venezuela Government Inte 9.25 49.03 9/15/2027 VE USD
Venezuela Government Inte 11.75 49.5 10/21/2026 VE USD
Venezuela Government Inte 11.95 49.5 8/5/2031 VE USD
Venezuela Government Inte 7.75 47.38 10/13/2019 VE USD
Venezuela Government Inte 13.625 65.25 8/15/2018 VE USD
Venezuela Government Inte 9.375 45.85 1/13/2034 VE USD
Venezuela Government Inte 7 52.85 12/1/2018 VE USD
Venezuela Government Inte 7 42 3/31/2038 VE USD
Venezuela Government Inte 9 45.5 5/7/2023 VE USD
Venezuela Government Inte 9.25 45.5 5/7/2028 VE USD
Venezuela Government Inte 8.25 44.38 10/13/2024 VE USD
Venezuela Government Inte 6 43.5 12/9/2020 VE USD
Venezuela Government Inte 13.625 56.5 8/15/2018 VE USD
Venezuela Government Inte 7.65 43.25 4/21/2025 VE USD
Venezuela Government Inte 13.625 59.69 8/15/2018 VE USD
Venezuela Government Inte 12.75 53.5 8/23/2022 VE USD
Venezuela Government TICC 5.25 53.23 3/21/2019 VE USD
VRG Linhas Aereas SA 10.75 25.63 2/12/2023 BR USD
VRG Linhas Aereas SA 10.75 25.63 2/12/2023 BR USD
XLIT Ltd 6.5 70 IE USD
***********
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
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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.
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Chapman, Editors.
Copyright 2016. All rights reserved. ISSN 1529-2746.
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