/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/161111.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, November 11, 2016, Vol. 17, No. 224 Headlines A N T I G U A & B A R B U D A LIAT: Says Passenger Travel Woes to Continue B R A Z I L CONCESSAO METROVIARIA: Moody's Assigns Ba2 Global Scale Rating C A Y M A N I S L A N D S CAYMAN MS: Commences Liquidation Proceedings CONDAO RESORT: Creditors' Proofs of Debt Due Nov. 28 ESAF PARTNERS: Creditors' Proofs of Debt Due Dec. 8 GOLDWATER MASTER: Creditors' Proofs of Debt Due Nov. 28 HEALTHCARE BIOTECH: Creditors' Proofs of Debt Due Nov. 28 IBIS RE II: Creditors' Proofs of Debt Due Dec. 7 INDOCHINA HOTELS: Creditors' Proofs of Debt Due Nov. 28 INDOCHINA LAND: Creditors' Proofs of Debt Due Nov. 28 INDOCHINA LAND PROJECT: Creditors' Proofs of Debt Due Nov. 28 INDOCHINA QUANG II: Creditors' Proofs of Debt Due Nov. 28 INDOCHINA QUANG III: Creditors' Proofs of Debt Due Nov. 28 OAK HILL: Commences Liquidation Proceedings PREMIER INVESTMENTS: Creditors' Proofs of Debt Due Nov. 17 E L S A L V A D O R BANDESAL: Moody's Cuts LT Foreign Currency Issuer Rating to B3 G U A T E M A L A BANCO DE LOS TRABAJADORES: Fitch Lowers IDR to 'B+' M E X I C O MEXICO: Touts Economic Strength in Face of Trump Victory MINERA FRISCO: Moody's Withdraws Caa1 LT LC Program Rating P U E R T O R I C O INVERSIONES POS: Hires Jose Monge Robertin as Advisor S T. L U C I A ST. LUCIA: Tourism Arrivals Down 3.5% Vs. Same Period in 2015 T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Outgoing Chief Secretary Critical of Service - - - - - =============================== A N T I G U A & B A R B U D A =============================== LIAT: Says Passenger Travel Woes to Continue -------------------------------------------- The Daily Observer reports that LIAT, operating as Leeward Islands Air Transport, blamed its latest round of flights delays and cancellations on the weather and warned that its disruptions are far from over. "Passengers can expect to experience some further delays, and some disruption is expected for the coming days as we work to improve the situation," according to The Daily Observer. In a new release, management said it is working to restore "normalcy" to its network schedule, which has been impacted by "unexpected weather conditions," the report notes. LIAT said high winds in St Vincent last Saturday resulted in an aircraft being grounded at the ET Joshua Airport, the report discloses. "This resulted in passengers being unable to leave St Vincent and the airline's crews were also out of place which impacted other flights," the airline said. Passengers with connections from Barbados, Dominica and Antigua & Barbuda were severely affected by the cancellations, the report relays. The company said as recent as Wednesday, Nov. 9, "unfortunate" inclement weather resulted in flooding and closure of ET Joshua, the report notes. "LIAT regrets that it has had to cancel some flights due to the airport closure." "Given the interconnectivity of our network, as well as the need to ensure a safe operation of our aircraft for crew and passengers, many of our customers throughout the region have been affected," the company admitted, the report says. LIAT said it is working "feverishly" to ensure that all those displaced are accommodated by rerouting flights, providing meals and accommodations, or by booking passengers on alternative airlines where possible, the report relays. "We, at LIAT, deeply regret these unfortunate circumstances," it said, adding that it will continue to work "around the clock" to ensure a speedy restoration of the published schedule," the report adds. * * * As reported in the Troubled Company Reporter-Latin America on May 8, 2015, the Daily Observer reports that LIAT, operating as Leeward Islands Air Transport, is attempting to lose excess baggage as part of measures to make the carrier "a smaller airline in 2015." In a document, signed by Director of Human Resources Ilean Ramsey, eligible employees were asked to opt to apply for voluntary separation or early retirement packages to avoid being made redundant, according to The Daily Observer. TCRLA reported on Dec. 2, 2014, citing Caribbean360.com, that chairman of the shareholder governments of the financially troubled regional airline LIAT, Dr. Ralph Gonsalves said while he is unaware of the details regarding any possible retrenchment of employees, the airline needs to deal with its high cost of operations. The TCR-LA on March 10, 2014, citing Caribbean360.com, reported that LIAT said it will take "decisive action" to deal with unprofitable routes as the Antigua-based airline seeks to make its operations financially viable. On Sept. 23, 2013, the TCRLA, citing Trinidad and Tobago Newsday, reported that there's much upheaval at the highest levels of LIAT -- the Board and the Executive. Following the sudden resignation of Chief Executive Officer Captain Ian Brunton, David Evans replaced Mr. Brunton as chief executive officer. =========== B R A Z I L =========== CONCESSAO METROVIARIA: Moody's Assigns Ba2 Global Scale Rating ---------------------------------------------------------------- Moody's America Latina Ltda. has assigned a Ba2 global scale and a Aa1.br Brazilian national scale rating (NSR) to the 7th senior unsecured (backed) debenture of up to BRL100 million to be issued by ConcessAo Metroviaria do Rio de Janeiro S/A ("METRORIO" or the "Company"), due in May 2018. METRORIO's issuer rating of Ba2 global scale and Aa1.br NSR were affirmed. The outlook for the ratings is negative. The senior unsecured (backed) non-convertible debentures are expected to be issued in November 16, 2016 and the proceeds will be used to refinance the currently outstanding 6-month promissory notes issued in May 2016. RATINGS RATIONALE The Ba2/Aa1.br ratings reflect METRORIO's relatively stable and predictable operating cash flows supported by a long-term concession contract with annual tariff adjustments indexed to domestic inflation. Despite the ongoing recession in Brazil (Ba2 negative), there has been continued growth in revenues and ridership year over year both from the addition of new stations as well as organic growth, which has had a positive impact on credit metrics. The rating also reflects the limited remaining expansionary capital expenditures remaining going forward. The debenture will have cross default provisions and will automatically accelerate in the event of a default of other debt outstanding of METRORIO above BRL 30 million, as well as in the event of a change of control at Invest. E Part. Em Infra-Estr S.A. -- INVEPAR (B2 negative), the Holding company. The debenture will also have a financial covenant that defines as event of default, subject to a 60% vote, the reporting of EBITDA to net financial expenses below 2.0x. The debt could also be accelerated, subject to a 60% vote of debenture holders, if METRORIO and/or the guarantor, Invepar, fail to comply with any anti-corruption laws. The negative outlook reflects the constraint of the sovereign rating and outlook given the domestic nature of the company's operations. WHAT COULD CHANGE THE RATINGS UP/DOWN In light of the negative outlook, an upgrade of the rating is unlikely in the near term. However a continued sustained growth in ridership and revenues could exert positive pressure on the rating. A rating downgrade could be triggered in case ridership or revenues decline over a prolonged period of time, the company's liquidity position deteriorates, or if operating and maintenance costs were to increase significantly from forecasted figures. Further deterioration in the sovereign's rating could also exert downward pressure on the ratings. Recent Developments In June 2013, METRORIO signed an operating and maintenance agreement with Concessionaria Rio Barra S.A. (not rated) whereby METRORIO became responsible for the maintenance and operation of subway system Line 4. This newly constructed line has 6 stations extending over 16 kilometers connecting the south and west regions of Rio de Janeiro City, having started partial operations just prior to the Olympic Games. The line is expected to service approximately 300,000 daily passengers. According to INVEPAR, METRORIO is responsible for the collection of tariffs from Line 4, and should generate positive cash flows derived from the contractual terms under the operation and services agreement with Concessionaria Rio Barra S.A. This agreement was not provided for review by Moody's. METROBARRA S.A., another subsidiary of INVEPAR, has the option to acquire Rio Barra S.A., and based on information provided by INVEPAR, METRORIO does not have any obligations associated with this acquisition, capital expenditures associated with Line 4, or with respect to debt service at METROBARRA. In the event METRORIO's financial position were to be negatively impacted by higher than anticipated costs associated with the operation of Line 4, there could be a reassessment of METRORIO's credit rating. In the LTM ended 6/30/2016, total paying passengers increased 3.4% to 218 million versus 211 million as of FY 2015. For the LTM ended June 30, 2016, using Moody's standard adjustments, METRORIO reported net operating revenues of BRL838 million and EBITDA of BRL357million, as compared to net operating revenues of BRL777 million and EBITDA of BRL392 million as of FY 2015. The decline in EBITDA is primarily due to increased costs associated with the preparation of the opening of Line 4, including additional personnel. In the LTM ended June 30, 2016, METRORIO's Debt-to- EBITDA remained at 3.5x which is lower than the historical average (2012-2015) of 4.3x, whereas Interest Coverage Ratio remains stable at 2.8x as the historical average. Liquidity As of June 30,2016, METRORIO had BRL 163 million cash and cash equivalents, versus BRL 242 million as of FY 2015. The decline in liquidity over the first six months of the year is primarily due to a total distribution of $72 million during the period. METRORIO's debt profile is relatively concentrated in the short- term (37.5% of total debt), however the company has already managed its more immediate debt maturity by refinancing activity earlier in the year (Debenture issuance of BRL 210 million and a Bank loan of BRL 140 million, in March, 2016). In addition to the current debenture issuance, this corroborates a positive track record in successfully raising financing from both public as well as private banks. Moreover, Moody's considers the track record of financial support from METRORIO's ultimate shareholders a positive factor. ABOUT METRORIO Concessao Metroviaria do Rio de Janeiro S.A. -- METRORIO is an urban railway passenger transportation company, which has the concession rights to operate Lines 1 and 2 of the subway system in the City of Rio de Janeiro with an extension of 42 km and 36 stations (the "Concession"). The Concession was granted by the State Government of Rio de Janeiro in 1998 for a 40-year period. In September 2016, METRORIO started the operation and maintenance of Rio de Janeiro's subway system's Line 4, adding 16 kilometers and 6 stations to its operations. ========================== C A Y M A N I S L A N D S ========================== CAYMAN MS: Commences Liquidation Proceedings -------------------------------------------- On Oct. 10, 2016, the shareholder of Cayman MS Investors 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: Stephen Nelson Collas Crill Willow House, Cricket Square P.O. Box 709 Grand Cayman KY1-1107 Cayman Islands Telephone: (345) 949.4544 Facsimile: (345) 949.8460 CONDAO RESORT: Creditors' Proofs of Debt Due Nov. 28 ---------------------------------------------------- The creditors of Condao Resort Development Ltd are required to file their proofs of debt by Nov. 28, 2016, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 20, 2016. The company's liquidator is: Michael Paul Piro Capital Place, 10th Floor 06 Thai Van Lung Street District 1, Ho Chi Minh City Vietnam Telephone: +84.8.3520.2030 Facsimile: +84.8.3520.2036 ESAF PARTNERS: Creditors' Proofs of Debt Due Dec. 8 --------------------------------------------------- The creditors of Esaf Partners Limited are required to file their proofs of debt by Dec. 8, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 17, 2016. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan dms House 20 Genesis Close, George Town PO Box 1344 KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 GOLDWATER MASTER: Creditors' Proofs of Debt Due Nov. 28 ------------------------------------------------------- The creditors of Goldwater Master Fund, Ltd. are required to file their proofs of debt by Nov. 28, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 14, 2016. The company's liquidator is: Mourant Ozannes Goldwater Asset Management LP c/o Jo-Anne Maher 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands Telephone: +44 207 796 7614 Facsimile: (345) 949-4647 HEALTHCARE BIOTECH: Creditors' Proofs of Debt Due Nov. 28 --------------------------------------------------------- The creditors of The Healthcare Biotech Fund Ltd are required to file their proofs of debt by Nov. 28, 2016, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 12, 2016. The company's liquidator is: Gene Dacosta P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands Telephone: (345) 814 7765 Facsimile: (345) 945 3902 IBIS RE II: Creditors' Proofs of Debt Due Dec. 7 ------------------------------------------------ The creditors of Ibis RE II Ltd. are required to file their proofs of debt by Dec. 7, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 19, 2016. The company's liquidators are: Andrew Johnson Alan Turner Telephone: (345) 946 4091 Circumference FS (Cayman) Ltd. P.O. Box 32322 Grand Cayman, KY1-1209 Cayman Islands INDOCHINA HOTELS: Creditors' Proofs of Debt Due Nov. 28 ------------------------------------------------------- The creditors of Indochina Hotels and Residences are required to file their proofs of debt by Nov. 28, 2016, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 20, 2016. The company's liquidator is: Michael Paul Piro Capital Place, 10th Floor 06 Thai Van Lung Street District 1, Ho Chi Minh City Vietnam Telephone: +84.8.3520.2030 Facsimile: +84.8.3520.2036 INDOCHINA LAND: Creditors' Proofs of Debt Due Nov. 28 ----------------------------------------------------- The creditors of Indochina Land Hoi An Golf Course II Ltd. are required to file their proofs of debt by Nov. 28, 2016, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 20, 2016. The company's liquidator is: Michael Paul Piro Capital Place, 10th Floor 06 Thai Van Lung Street District 1, Ho Chi Minh City Vietnam Telephone: +84.8.3520.2030 Facsimile: +84.8.3520.2036 INDOCHINA LAND PROJECT: Creditors' Proofs of Debt Due Nov. 28 ------------------------------------------------------------- The creditors of Indochina Land Project Management Company are required to file their proofs of debt by Nov. 28, 2016, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 20, 2016. The company's liquidator is: Michael Paul Piro Capital Place, 10th Floor 06 Thai Van Lung Street District 1, Ho Chi Minh City Vietnam Telephone: +84.8.3520.2030 Facsimile: +84.8.3520.2036 INDOCHINA QUANG II: Creditors' Proofs of Debt Due Nov. 28 ---------------------------------------------------------- The creditors of Indochina Quang Nam Resort Holding II are required to file their proofs of debt by Nov. 28, 2016, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 20, 2016. The company's liquidator is: Michael Paul Piro Capital Place, 10th Floor 06 Thai Van Lung Street District 1, Ho Chi Minh City Vietnam Telephone: +84.8.3520.2030 Facsimile: +84.8.3520.2036 INDOCHINA QUANG III: Creditors' Proofs of Debt Due Nov. 28 ---------------------------------------------------------- The creditors of Indochina Quang Nam Resort Holding III are required to file their proofs of debt by Nov. 28, 2016, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Oct. 20, 2016. The company's liquidator is: Michael Paul Piro Capital Place, 10th Floor 06 Thai Van Lung Street District 1, Ho Chi Minh City Vietnam Telephone: +84.8.3520.2030 Facsimile: +84.8.3520.2036 OAK HILL: Commences Liquidation Proceedings ------------------------------------------- The sole shareholder of Oak Hill Credit Alpha Finance I (Offshore), Ltd., on Oct. 21, 2016, resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 PREMIER INVESTMENTS: Creditors' Proofs of Debt Due Nov. 17 ---------------------------------------------------------- The creditors of Premier Investments Holding Co., Ltd. are required to file their proofs of debt by Nov. 17, 2016, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Oct. 18, 2016. The company's liquidator is: Susan Lo Yee Har Level 54, Hopewell Centre 183 Queen's Road East Hong Kong c/o Anthony McKenzie Telephone: +1 (345) 749 2001 ===================== E L S A L V A D O R ===================== BANDESAL: Moody's Cuts LT Foreign Currency Issuer Rating to B3 --------------------------------------------------------------- Moody's Investors Service has downgraded to B3, from B1, the long- term foreign currency issuer rating of Banco de Desarrollo de El Salvador (Bandesal). At the same time, Moody's downgraded the long-term foreign currency deposit rating of Banco Agricola, S.A. and the long-term foreign currency senior unsecured debt rating of Agricola Senior Trust (AST) to B1 from Ba2. AST is a Cayman Islands-based trust unconditionally and irrevocably guaranteed by Banco Agricola. Banco Agricola's long-term counterparty risk assessment was also downgraded to B1(cr) from Ba2(cr). All the ratings carry negative outlooks. In addition, both banks' standalone Baseline Credit Assessments (BCA) were downgraded to b3 from b1. These rating actions follow Moody's downgrade of El Salvador's government bond rating to B3, from B1, with a negative outlook. The following ratings and assessments were downgraded: Issuer: Banco de Desarrollo de El Salvador -- Long-term foreign currency issuer rating, to B3 from B1, negative outlook -- Baseline credit assessment, to b3 from b1 -- Adjusted baseline credit assessment, to b3 from b1 Issuer: Banco Agricola, S.A. -- Baseline credit assessment, to b3 from b1 -- Adjusted baseline credit assessment, to b1 from ba2 -- Long-term foreign currency deposit rating, to B1 from Ba2, negative outlook -- Long-term counterparty risk assessment, to B1(cr) from Ba2(cr) Issuer: Agricola Senior Trust -- Long-term foreign currency senior unsecured debt rating, to B1 from Ba2, negative outlook RATINGS RATIONALE The downgrades result from the downgrade of El Salvador's government bond rating to B3 from B1, and the corresponding deterioration in the country's operating environment. The downgrade of El Salvador's government bond rating considered the increased liquidity risks facing the government stemming from its persistently high and rising short-term debt and the legislative impasse that has so far this year prevented the approval of long- term debt issuance to retire short-term paper. The lower BCAs reflect Moody's view that the creditworthiness of both banks is intrinsically interlinked with that of the Salvadoran government. The deterioration of the country's institutional strength and increase in government liquidity risk reflected by the downgrade of the Salvadoran sovereign prompted a reassessment of the country's Macro Profile to "Very Weak +," from "Weak." The Macro Profile reflects the riskiness of the country's operating environment and provides the context within which the banks' financial profiles are assessed. In downgrading the BCA of Bandesal, a local development bank, Moody's also took into account that its funding, liquidity position and market access are closely tied to the government's own liquidity pressures. While Banco Agr°cola maintains a good capital position, consistent profitability and ample liquidity, its financial strength remains limited by the creditworthiness of the Salvadoran government, particularly in light of its large holdings of government debt. Banco Agricola's B1 foreign currency deposit rating continues to benefit from two notches of uplift from its b3 BCA, as a result of the high probability of support from its parent, Bancolombia, S.A. (deposits Baa2 stable, BCA ba1), the BCA of which was also lowered following the downgrade of El Salvador. For details on the rating action, please refer to Moody's press release "Moody's downgrades Bancolombia's sub debt and BCA; affirms senior ratings", dated 8 November 2016. Moody's assessment of affiliate support is based on Banco Agricola's importance to Bancolombia's Central American banking franchise. The negative outlooks on Bandesal's and Banco Agricola's ratings are in line with the negative outlook on El Salvador's government bond rating. WHAT COULD CAUSE THE RATINGS TO MOVE UP OR DOWN If El Salvador's government bond rating is downgraded further, Bandesal's and Banco Agr°cola's BCAs and their respective supported ratings are likely to be downgraded again as well. While the banks' ratings are unlikely to face upward pressure in the near-to-medium term, their outlooks are likely to be stabilized if and when the outlook on the government bond rating returns to stable. The last rating action on Bandesal was on August 12, 2016. The last rating action Banco Agr°cola was on August 12, 2016. The last rating action on Agr°cola Senior Trust was on August 12, 2016. The principal methodology used in rating Banco de Desarrollo de El Salvador was Government-Related Issuers published in October 2014. The principal methodology used in rating Banco Agricola, S.A. and Agricola Senior Trust was Banks published in January 2016. Bandesal is El Salvador's development bank, originally established as Banco Multisectorial de Inversiones by special legislative act in 1994 and transformed into Banco de Desarrollo de El Salvador by law in 2012. The bank supports private sector economic development and investment largely by lending through the financial system. Bandesal reported total assets of $581 million as of September 2016. Banco Agricola is domiciled in San Salvador, El Salvador, and is the largest bank in the country with market shares of 27% and 26% in loans and deposits. As of September 2016, Banco Agricola reported consolidated assets of $4.2 billion and deposits of $2.8 billion. Agricola Senior Trust is a Cayman Islands special purpose trust governed by the laws of the Cayman Islands and is unconditionally and irrevocably guaranteed by Banco Agricola. ================= G U A T E M A L A ================= BANCO DE LOS TRABAJADORES: Fitch Lowers IDR to 'B+' --------------------------------------------------- Fitch Ratings has downgraded Banco de los Trabajadores' (Bantrab) Long-Term Issuer Default Ratings to 'B+' from 'BB-'. In addition, the long-term National scale ratings of Bantrab, and Financiera de los Trabajadores (Fintrab) and the National scale Insurer Financial Strength (IFS) of Aseguradora de los Trabajadores have also been downgraded, to 'BBB(gtm)' from 'A(gtm)'. The Rating Watch Negative is maintained for the first two entities, while Aseguradora de los Trabajadores was placed on Rating Watch Negative. Bantrab's IDRs, Viability Rating (VR) and National ratings have all been downgraded as the capacity for continued timely payment on the bank's financial liabilities has materially declined. Nevertheless, Fitch expects the November 2016 coupon to be paid on time, since, according to Bantrab management, these funds have already been transferred to the trustee. Recent events related to the arrest of various executives and members of the Board of Directors by the Guatemalan authorities on charges of fraud, illicit associations and embezzlement to the detriment of the bank's shareholders highlight the weaknesses in corporate governance and risk controls and contributed to the loss of various correspondent bank relationships. The Rating Watch Negative is maintained, as Fitch believes that Bantrab's correspondent bank relationships could continue to suffer while deposit instability may increase, with a negative effect on its funding and liquidity profile as well as the bank's ability to make future payments to bondholders. Fitch will continue to monitor available information and the evolution of Bantrab's relationship with correspondent banks as well as its operational capacity to service future debt payments. The next coupon payment is scheduled for May 2017. In line with Bantrab's rating actions, Bantrab Senior Trust's (BST) IDR has been downgraded to 'B+' from 'BB-' and the Rating Watch Negative maintained. Fitch will monitor the evolution of Bantrab's relationship with correspondent banks and its operational capacity to make future debt payments. The National scale ratings of Bantrab, Fintrab and Aseguradora de los Trabajadores were downgraded in line with the parent, since these are driven by its support. KEY RATING DRIVERS IDRS, VR and NATIONAL RATINGS - Bantrab Bantrab's ratings are limited by corporate governance weakness and a funding profile that is highly sensitive to market sentiment. The bank is characterized by its high-risk appetite, mainly reflected by weak risk controls and its focus on segments of middle and low income customers, particularly in the Guatemalan public sector. The bank registers good loan quality indicators given the debt collection via automatic payroll deductions, and its capital position compares favorably with the industry average and its main competitors. Bantrab's profitability has dropped slightly but remains at a good level. This is based on a high net interest margin, acceptable operational efficiency and moderate loan loss provisions. SUPPORT RATING AND SUPPORT RATING FLOOR - Bantrab Bantrab's SR and SRF of '5' and 'NF', respectively, indicate that, although possible, external support cannot be relied upon given the currently low state ownership and limited systemic importance. IDR - Bantrab Senior Trust BST's seven-year U.S.-dollar loan participation notes' rating is in line with Bantrab's VR reflecting that the senior unsecured obligations rank equally with the bank's unsecured and unsubordinated obligations. Fitch has assigned a Recovery Rating of 'RR4' as we expect an average recovery in the event of a default. National Scale Ratings - Fintrab and Aseguradora de los Trabajadores In Fitch's opinion, Fintrab and Aseguradora de los Trabajadores' National ratings are underpinned by institutional support they would receive from their shareholder, Bantrab. Fitch's opinion of the support is based on the high integration of the subsidiaries with the parent and the significant reputational risk that a default of one of them would pose to Bantrab. As a result, their National scale ratings are aligned with Bantrab's credit profile. RATING SENSITIVITIES IDRS, VR, RECOVERY RATING, NATIONAL RATINGS, SR AND SRF The ratings could be downgraded if the bank's ability to service its debt is further weakened due to the loss of its correspondent bank relationship, a material decline in liquidity or a deterioration of its funding profile. Conversely, the Rating Watch Negative could be removed if actions are taken to ensure the timely payment of future debt obligations. IDR - BST Changes in the notes' rating are contingent with rating actions for Bantrab. National Ratings - Fintrab y Aseguradora de los Trabajadores The National ratings of Bantrab's subsidiaries would mirror changes in the National scale ratings of their parent. The rating actions are: Banco de los Trabajadores: -- Long-term IDR downgraded to 'B+' from 'BB-', Rating Watch Negative maintained; -- Short-term IDR affirmed at 'B', Rating Watch Negative maintained; -- Local Currency Long-term IDR downgraded to 'B+' from 'BB-', Rating Watch Negative maintained; -- Local currency Short-term IDR affirmed at 'B', Rating Watch Negative maintained; -- National Long-term Rating downgraded to 'BBB(gtm)' from 'A(gtm)', Rating Watch Negative maintained; -- National Short-term Rating downgraded to 'F3(gtm)' from 'F1(gtm)', Rating Watch maintained; -- Viability Rating downgraded to 'b+' from 'bb-', Rating Watch Negative maintained; -- Support Rating affirmed at '5'; -- Support Rating Floor affirmed at 'NF'. Financiera de los Trabajadores, S.A. -- Long-term national rating downgraded to 'BBB(gtm)' from 'A(gtm)'; Rating Watch Negative maintained; -- Short-term national rating downgraded to 'F3(gtm)' from 'F1(gtm)', Rating Watch Negative maintained. Bantrab Senior Trust -- Long-term foreign currency loan participation notes downgraded to 'B+' from 'BB-', Rating Watch Negative maintained. -- Recovery Rating assigned: 'RR4'. Fitch has taken these rating actions for Aseguradora de los Trabajadores: -- National scale IFS Rating downgraded to 'BBB(gtm)' from 'A(gtm)', Placed on Rating Watch Negative. =========== M E X I C O =========== MEXICO: Touts Economic Strength in Face of Trump Victory -------------------------------------------------------- EFE News reports that Mexico's top economic policymakers said that their country "is in a strong position" to deal with uncertainty following the election of Donald Trump as U.S. president, though they also signaled readiness to make any needed adjustments. Finance Secretary Jose Antonio Meade acknowledged the volatility in currency markets that caused the peso to dip to historic low against the dollar before rebounding slightly, according to EFE News. At the same time, however, he said he did not expect any "immediate impact" on bilateral trade, travel or financial flows, the report notes. Trump, who has described Mexican immigrants as criminals and "rapists," promised during the campaign to build a wall on the U.S.-Mexico border and to overhaul the North American Free Trade Agreement, the report relays. "Mexico is in a strong position to face the new environment," Meade said during a brief joint appearance with Central Bank Chief Agustin Carstens, the report discloses. Mr. Carstens said that the Banco de Mexico's board will meet next week "as scheduled," to review the situation and, if necessary, adjust the current monetary policy to keep inflation stable at around 3 percent, the report says. Thanks to prudent government policies, Mexico has a "well- capitalized" and solvent financial system, Mr. Meade said, the report notes. Mexico's Congress has already approved a 2017 budget with a projected primary surplus and the government's hedging strategy ensures that oil revenues will be protected even if prices drop, the secretary said, the report discloses. Even so, his department and the Banco de Mexico will remain "especially vigilant" in monitoring developments in the financial markets, Mr. Meade said, the report adds. MINERA FRISCO: Moody's Withdraws Caa1 LT LC Program Rating ---------------------------------------------------------- Moody's de Mexico withdrew the provisional long-term ratings assigned to the debt programs of Arrendadora y Factor Banorte, S.A. de C.V. (AyF Banorte), HSBC Mexico, S.A., Minera Frisco, S.A.B. de C.V., SGFP Mexico, S. de R.L. de C.V., Volkswagen Bank, S.A., and Volkswagen Leasing, S.A. Long-term ratings assigned to all drawdowns under these programs are unaffected. At the same time, Moody's converted to definitive ratings the provisional short-term ratings assigned to the debt programs of AyF Banorte, Comision Federal de Electricidad, Grupo Aeroportuario del Pacifico, S.A.B. de C.V., Minera Frisco, SGFP Mexico, and Volkswagen Leasing. RATINGS RATIONALE Moody's has withdrawn the provisional long-term ratings for its own business reasons. The previously provisional short-term ratings have been converted to definitive ratings. The following ratings were affected by the rating action: Arrendadora y Factor Banorte, S.A. de C.V. -- Long-term local currency program rating of (P) Baa2, withdrawn -- Long-term Mexican National Scale program rating of Aa2.mx, withdrawn -- Short-term local currency program rating converted to Prime- 2, from (P) Prime-2 Comision Federal de Electricidad -- Short-term local currency program rating converted to Prime- 2, from (P) Prime-2 Grupo Aeroportuario del Pacifico, S.A.B. de C.V. -- Short-term local currency program rating converted to Prime- 2, from (P) Prime-2 HSBC Mexico, S.A. -- Long-term local currency program rating of (P) Baa2, withdrawn -- Long-term Mexican National program rating of Aa2.mx, withdrawn Minera Frisco, S.A.B. de C.V. -- Long-term local currency program rating of (P) Caa1, withdrawn -- Long-term Mexican National Scale local currency program rating of Caa1.mx, withdrawn -- Short-term local currency program rating converted to Not Prime, from (P) Not Prime SGFP Mexico, S. de R.L. de C.V. -- Long-term local currency program ratings of (P) A2, withdrawn -- Long-term Mexican National Scale program ratings of Aaa.mx, withdrawn -- Short-term local currency program ratings converted to Prime-1, from (P) Prime-1 Volkswagen Bank, S.A. -- Long-term local currency program rating of (P) A2, withdrawn -- Long-term Mexican National Scale program rating of Aaa.mx, withdrawn Volkswagen Leasing, S.A. -- Long-term local currency program rating of (P) A2, withdrawn -- Long-term Mexican National Scale program rating of Aaa.mx, withdrawn -- Short-term local currency program rating converted to Prime- 1, from (P) Prime-1 The methodology used in the ratings of Arrendadora y Factor Banorte, S.A. de C.V. and Volkswagen Leasing, S.A. de C.V. was Finance Companies published in October 2015. The methodologies used in the ratings of Comision Federal de Electricidad were Regulated Electric and Gas Utilities published in December 2013, and Government-Related Issuers published in October 2014. The methodology used in the ratings of Grupo Aeroportuario del Pacifico, S.A.B. de C.V. was Privately Managed Airports and Related Issuers published in December 2014. The methodology used in the ratings of HSBC Mexico S.A., SGFP MÇxico, S. de R.L. de C.V and Volkswagen Bank, S.A. was Banks published in January 2016. The methodology used in the ratings of Minera Frisco, S.A.B. de C.V. was Global Mining Industry published in August 2014. The period of time covered in the financial information used to determine Arrendadora y Factor Banorte, S.A. de C.V.'s ratings is between January 1, 2011 and September 30, 2016 (source: Moody's and issuer's annual audited and quarterly unaudited financial statements). The period of time covered in the financial information used to determine Comision Federal de Electricidad's ratings is between January 1, 2011 and September 30, 2016 (source: Moody's and issuer's annual audited and quarterly unaudited financial statements). The period of time covered in the financial information used to determine Grupo Aeroportuario del Pacifico, S.A.B. de C.V.'s ratings is between January 1, 2011 and September 30, 2016 (source: Bolsa Mexicana de Valores, Moody's and issuer's annual audited and quarterly unaudited financial statements). The period of time covered in the financial information used to determine HSBC Mexico, S.A.'s ratings is between January 1, 2011 and June 30, 2016 (source: Moody's and issuer's annual audited and quarterly unaudited financial statements). The period of time covered in the financial information used to determine Minera Frisco, S.A.B. de C.V.'s ratings is between 1 January 2012 and 30 September 2016 (source: Moody's and issuer's annual audited and quarterly unaudited financial statements). The period of time covered in the financial information used to determine SGFP MÇxico, S. de R.L. de C.V.'s ratings is between January 1, 2011 and June 30, 2016 (source: Moody's and issuer's annual audited and quarterly unaudited financial statements). The period of time covered in the financial information used to determine Volkswagen Bank, S.A.'s ratings is between January 1, 2011 and June 30, 2016 (source: Moody's and issuer's annual audited and quarterly unaudited financial statements). The period of time covered in the financial information used to determine Volkswagen Leasing, S.A.'s ratings is between January 1, 2011 and June 30, 2016 (source: Moody's and issuer's annual audited and quarterly unaudited financial statements). ====================== P U E R T O R I C O ====================== INVERSIONES POS: Hires Jose Monge Robertin as Advisor ----------------------------------------------------- Inversiones POS 452 Corporation seeks authority from the U.S. Bankruptcy Court for the District of Puerto Rico to employ Jose M. Monge Robertin, CPA, CIRA, CGMA, and Monge Robertin & Asociados, Inc., as insolvency and restructuring advisors. The Debtor requires Monge Robertin to provide services in the reorganization process of the Debtor in the areas of Plan Development, Liquidation Analysis, Claims Administration, Feasibility, Negotiations, Investment, Financing and other matters to assist the counsel and debtors' reorganization. Monge Robertin professionals will be paid at these hourly rates: Jose M. Monge Robertin, CPA, CIRA, CGMA $275 Jose J. Negron Colon, CPA, CIRA, CGMA $200 Maria Pena, MST, CIRA $175 Edgar Rivera Aponte, BS $150 Juanita Claudio, MBA $125 Melisa Claudio $85 Support Staff $65 Assistant Accountants $35 A deposit of $10,000.00 is required as part of the Debtor and the advisors' agreement. About $4,000 has been paid by the shareholder and the difference will be paid subsequent to the filing of the petition. Dr. Ramon Barquin III, Chairman of the Board of the Debtor, assured the Court that the firm is a "disinterested person" as the term is defined in Section 101(14) of the Bankruptcy Code and does not represent any interest adverse to the Debtors and their estates. Monge Robertin can be reached at: Jose Monge Robertin, Esq. MONGE ROBERTIN & ASOCIADOS, INC. Calle Acosta # 97 Caguas, Puerto Rico Phone: 787-745-0707 Fax: 787-746-3895 Email: cpamonge@cirapr.com Inversiones POS 452 Corporation filed a Chapter 11 bankruptcy petition (Bankr. D.P.R. Case No. 16-07834) on Sept. 30, 2016. Judge Edward A Godoy presides over the case. =============== S T. L U C I A =============== ST. LUCIA: Tourism Arrivals Down 3.5% Vs. Same Period in 2015 ------------------------------------------------------------- Throughout the Caribbean, growth in arrivals from the United Kingdom has continued its recovery into 2016. But in St. Lucia, the latest tourism statistics tell a different story. After what appears to have been a brief resurgence in 2014, British arrivals to St. Lucia have steadily declined. For the year up to June 2016, arrivals from this market -- which accounts for roughly a quarter of all stay-over visitors to St. Lucia -- were down 3.5 per cent, compared to the same period in 2015. The Eastern Caribbean Central Bank (ECCB) had expected additional airlift from the UK to boost arrivals in 2016, as British Airways, Virgin Atlantic and the Sun Wing all increased capacity. However, travel advisories related to the Zika virus, in particular, coupled with uncertainty surrounding the Brexit vote may have tempered growth. The ECCB expects the remainder of the year to be just as challenging -- a sentiment that may be supported by the recently released October 2016 edition of the World Economic Outlook by the International Monetary Fund (IMF). The IMF now anticipates growth in the UK economy to slow to 1.8 per cent in 2016 from 2.2 per cent in 2015, and has revised its growth projection for the UK economy in 2017 downwards to 1.1 per cent. ================================ T R I N I D A D & T O B A G O ================================ CARIBBEAN AIRLINES: Outgoing Chief Secretary Critical of Service ---------------------------------------------------------------- The Daily Observer reports that the outgoing Chief Secretary of the Tobago House of Assembly (THA), Orville London, has criticized the service being provided by the state-owned Caribbean Airlines (CAL) saying the island "needs and airline that is sensitive" to its socio-economic development. Addressing the annual Tobago Economic and Business Outlook Conference, London said that Tobago does not want a situation where the airline "is bringing some 10, 11 flights from Canada everyday every week (and) we say let one of them pass through Tobago and they say no, according to The Daily Observer. "I am saying that we need an airline that is sensitive and recognizes that an investment in Tobago at this point in time is going to reap rich dividends down the road," said Mr. London, who is not going to contest the next THA elections due in January next year, the report notes. Mr. London told delegates to the conference that Tobago "wants Caribbean Airlines to understand that it is the national airline of Trinidad and Tobago, The Daily Observer relays. "And in those circumstances, Trinidad and Tobago must take priority. It does not matter to be that it is the national carrier for other islands, other countries, I am not envious but I am not stupid. "I am saying that if I am living in Tobago and this is Trinidad and Tobago and this is my national airline my business must take priority," Mr. London added. The report notes that Mr. London said he intends meeting with the new board of directors of the airline later this month and will bring up the need to improve service on the airbridge between the two islands. "I do not want this new board to deal with a situation where Caribbean Airlines cannot take care of our domestic tourism," he said, recalling a conversation he had with a politician from a Caribbean country who said that visitors from Trinidad were an important aspect of his country's tourism sector. "What he said is that they not only bring money, they bring energy and the energy they bring actually encourages other people to come. Now here it is that this man is telling me that the Trinidad Tourist market can in fact make this significant input into his tourism sector . . . and one of the main reasons is that you can guarantee that you can leave Port of Spain . . . and get to his country but you can't do the same between Trinidad and Tobago. "I am saying these are the kinds of issues we must deal with," he added. About Caribbean Airlines Caribbean Airlines Limited -- http://www.caribbean-airlines.com/ -- provides passenger airline services in the Caribbean, South America, and North America. The company also offers freighter services for perishables, fish and seafood, live animals, human remains, and dangerous goods. In addition, it operates a duty free store in Trinidad. Caribbean Airlines Limited was founded in 2006 and is based in Piarco, Trinidad and Tobago. As reported in the Troubled Company Reporter-Latin America on November 2, 2015, RJR News said that Michael DiLollo, Chief Executive Officer of Caribbean Airlines Limited has quit after just 17 months on the job. The 48-year-old Canadian national, citing personal reasons, resigned with immediate effect. His resignation was accepted by the airline's board of directors. Mr. DiLollo was appointed Caribbean Airlines CEO in May 2014, following the sudden resignation of Robert Corbie in September 2013. In early February 2015, Larry Howai, then Finance Minister, told Parliament that unaudited accounts for 2014 showed the airline made a loss of US$60 million, inclusive of its Air Jamaica operations, and the airline planned to break even by 2017. Mr. Howai told the Parliament that a five-year strategic plan had been completed and was in the process of being approved for implementation. In an interview with the Trinidad & Tobago Guardian in early November 2015, Mr. DiLollo said CAL did not need a bailout just yet. Mr. DiLollo said the airline had benefited from extremely patient shareholders for years and he believed the airline was strategically positioned to break even in three years. *********** 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, Ivy B. Magdadaro, 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 * * *