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/raid1/www/Hosts/bankrupt/TCRLA_Public/161129.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Tuesday, November 29, 2016, Vol. 17, No. 236 Headlines A R G E N T I N A BANCO DE LA CIUDAD: Moody's Assigns B3 Sr. Unsecured Debt Rating RIO NEGRO: Moody's Retains B3 Rating on ARS700MM Treasury Bills B O L I V I A BOLIVIA: To Get $30 Million-IDB Loan for La Paz and El Alto B R A Z I L BRAZIL: Cabinet Member Geddel Vieira Lima Resigns BR MALLS: Posts 3rdQ Net Income of BRL35.5 Million C A Y M A N I S L A N D S ADA CAPITAL: Members' Final Meeting Set for Dec. 28 CATAMOUNT DIVERSIFIED: Shareholders' Final Meeting Set for Dec. 28 GLOBAL LONG: Shareholders' Final Meeting Set for Dec. 1 GOLDMAN SACHS COMMODITIES: Members' Final Meeting Set for Dec. 1 GOLDMAN SACHS DIRECT: Members' Final Meeting Set for Dec. 1 GOLDMAN SACHS DIRECT II: Members' Final Meeting Set for Dec. 1 GOLDMAN SACHS FUND: Members' Final Meeting Set for Dec. 1 GOLDMAN SACHS QUANTITATIVE: Members' Final Meeting Set for Dec. 1 GOLDMAN SACHS US: Members' Final Meeting Set for Dec. 1 GREEN CYPRESS: Shareholders' Final Meeting Set for Dec. 1 MILLENNIUM ADVISORS: Shareholders' Final Meeting Set for Dec. 6 VALTERRA FUND: Shareholders' Final Meeting Set for Dec. 15 WAINWRIGHT DREADNOUGHT: Members' Final Meeting Set for Dec. 28 WASHINGTON LOAN: Shareholders' Final Meeting Set for Nov. 30 C O S T A R I C A ETHICAL FORESTRY: Investors Uncertain on Compensation J A M A I C A MAVIS BANK: Owes J$200 Million, Coffee Farmers Demand Answers M E X I C O FINANCIERA FINCA: S&P Keeps 'BB-/B' ICRs on CreditWatch Developing NEMAK SAB: Fitch Affirms 'BB+' IDR & Revises Outlook to Positive GRUPO CEMENTOS: Fitch Affirms 'BB' IDR & Removes from Watch Neg. P U E R T O R I C O CLINICA SANTA ROSA: U.S. Trustee Ordered to Appoint PCO POPULAR INC: Fitch Affirms 'BB-' Long Term Issuer Default Rating V E N E Z U E L A PETROLEOS DE VENEZUELA: Curacao Refinery in Financial Crisis V I R G I N I S L A N D S XCITE ENERGY: Liquidation Petition Hearing Set for December 5 - - - - - ================= A R G E N T I N A ================= BANCO DE LA CIUDAD: Moody's Assigns B3 Sr. Unsecured Debt Rating ---------------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo (MLA) has assigned a B3 global local currency senior unsecured debt rating and a Baa1.ar Argentina national scale senior debt rating to Banco de la Ciudad de Buenos Aires S.A.'s Class IX and Class X senior unsecured debt issuances . The notes will be due 2020 and 2024, respectively, and will be issued under Ciudad's existing multi- currency senior unsecured program of $500 million, and up to ARS 1,000 million total issued amount. The outlook on Banco de la Ciudad de Buenos Aires' senior unsecured debt rating is stable. These ratings were assigned to Banco de la Ciudad de Buenos Aires's Class IX and Class X local currency senior unsecured notes: Global local currency senior unsecured debt rating of B3; stable Outlook Argentinean national scale local currency senior debt rating of Baa1.ar, stable outlook RATINGS RATIONALE Ciudad's B3 rating incorporates Argentina's operating environment, which remains challenging despite the country's recent return to global capital markets and various other market-friendly policy reforms implemented in recent months by the new administration. The rating acknowledges Ciudad's traditional retail-banking franchise in the city of Buenos Aires, experienced management team, and strong financial fundamentals. The bank's solid capitalization and largely core funded operation, positions it well to support future portfolio expansion. In September 2016, Moody's tangible common equity ratio stood at 11.32%. With a good track record of disciplined risk guidelines, Ciudad's nonperforming loan ratio reached 1.68% of total loans in 3Q16, in line with industry level of 1.7%, while reserve buffers of 1.52% of total loans, are still low compared to peers in Argentina. As a government-owned bank, Ciudad is focused on providing products and services to public servants of the city of Buenos Aires, a strategy which generates recurring earnings, supported by the low risk loan mix that helps to reduce credit costs, lean operational structure and low-cost funding profile. The Baa1.ar national scale local-currency deposit and debt ratings are positioned at the top of the range of available options for B3 rated issuers, to reflect the relative strength of Ciudad when compared to other B3 rated local banks. All ratings have a stable outlook is in line with the outlook on Argentina's sovereign bond rating. WHAT COULD CHANGE THE RATING UP/DOWN As the rating is effectively capped by the Argentine sovereign's B3 rating due to the strong credit links between the sovereign and the bank, an upgrade of the sovereign rating accompanied by continued improvement in operating conditions could put positive pressures on Ciudad's ratings, provided the bank maintains a disciplined approach to loan growth. Ciudad could face downward ratings pressure if the operating environment deteriorates and the sovereign rating is downgraded or if the bank suffers a substantial deterioration in its asset quality, earnings, and capitalization. The principal methodology used in these ratings was Banks published in January 2016. Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". While NSRs have no inherent absolute meaning in terms of default risk or expected loss, a historical probability of default consistent with a given NSR can be inferred from the GSR to which it maps back at that particular point in time. For information on the historical default rates associated with different global scale rating categories over different investment horizons, please see: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_ 189530 Banco de la Ciudad de Buenos Aires is headquartered in Buenos Aires, with assets of ARS 70.88 billion ($4.65 billion) and equity of ARS 7.35 billion ($481.67 million) as of Sept. 30, 2016. RIO NEGRO: Moody's Retains B3 Rating on ARS700MM Treasury Bills --------------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo announces that the (P)B3 (Global Scale local currency) and Baa3.ar (Argentina National Scale) ratings of the Province of Rio Negro's ARS700 million Treasury Bills Program remain unchanged after the extension of the maximum authorized amount by ARS598 million. The ratings are in line with the province's long term local currency issuer ratings, which carry stable outlook. RATINGS RATIONALE The Treasury Bills Program was originally created by Governor's Decree N147 and authorized by Resolution N43 of the Secretary of Finance for a maximum amount of ARS700 million which was subsequently increased to a maximum of ARS1,350 million by Decree N990 and to the current new maximum of ARS1,948 million by Decree N1789. The applied debt ratings reflect Moody's view that the willingness and capacity of the Province of Rio Negro to honor these treasury bills is in line with the provincial's long-term credit quality as reflected in the B3/Baa3.ar issuer ratings in local currency. According to the term sheet reviewed by Moody's, the bills will all be issued in local currency, will mature in up to 365 days with bullet amortization. Moody's originally assigned the ratings on this program on May 4, 2016, and after the issuance of additional Treasury Bills up to the new authorized amount of ARS 1,948 million Moody's anticipates that the Province's total debt will rise to approximately 33% of total expected revenues for 2016 fiscal year from 26% at the end of 2015 fiscal year. This expected increase in the debt to total revenues ratio is still consistent with the Province of R°o Negro current ratings. The applied ratings are based on preliminary documentation received by Moody's as of the rating assignment date. Moody's does not expect changes to the documentation reviewed over this period or anticipates changes in the main conditions that the bills will carry. Should issuance conditions and/or final documentation of any of the classes under this program deviate from the original ones submitted and reviewed by the rating agency, Moody's will assess the impact that these differences may have on the ratings and act accordingly. WHAT COULD CHANGE THE RATING UP/DOWN Given the strong macroeconomic and financial linkages between the Government of Argentina's and Sub-sovereigns economic and financial profiles and ratings, an upgrade of Argentina's sovereign bonds ratings and/or the improvement of the country' operating environment could lead to an upgrade of the Province of Rio Negro. Conversely, a downgrade in Argentina's bond ratings and/or a material deterioration of the province's financial results or debt levels --i.e. above 40% of its total revenues- could exert downward pressure on the ratings assigned. The principal methodology used in this rating was Regional and Local Governments published in January 2013. ============= B O L I V I A ============= BOLIVIA: To Get $30 Million-IDB Loan for La Paz and El Alto ----------------------------------------------------------- Bolivia will upgrade its rain water drainage systems in the cities of La Paz and El Alto with a $30 million loan from the Inter- American Development Bank (IDB), benefiting 16,000 households. In La Paz alone, with its population of 800,000, the authorities estimate that landslides and floods in the rainy season cost around $27 million a year, including spending for emergencies, clean-up work, rebuilding infrastructure and losses in the private sector. The projects planned for El Alto will target the culverting in Emisario Avda. Arica and the drainpipe system along Avenida 6 de marzo, and other drainage work that altogether will require a $12.8 million investment. In La Paz, hydraulic work will be done to the tune of $14.3 million in the Irpavi, Achumani, Kellumani and Huayllani rivers. The direct beneficiaries will be people whose homes are affected by erosion and river bank overflows during the six-month rainy season. In La Paz, more than 2,000 households that are home to 7,100 people will benefit, while in El Alto the figure is 13,600 homes where 47,600 people live. In La Paz the project will also aid some 34,000 people who every day cross the Calacoto bridge, which is affected by rising waters from the Irpavi river at least three times a year. In El Alto, the work will help some 45,000 people who travel along the La Paz- Oruro road, which diverts traffic toward Cochabamba, Santa Cruz, Sucre, Potos° and Tarija and tends to get cut off by flooding. The program will also allow for the implementation of the Social Consensus and Environmental Education Plan in La Paz and projects to let social organizations take part in solid waste clean-up efforts in the areas targeted by the program. The financing consists of a $25.5 million loan from the IDB's ordinary capital fund, over 30 years, with a grace period of six years and an interest rate pegged to the LIBOR, and a second loan of $4.5 million from the Fund for Special Operations over 40 years, with a 40-year grace period and an interest rate of 0.25 percent. The local contribution will be $4 million. As reported in the Troubled Company Reporter-Latin America on July 18, 2016, Fitch Ratings downgraded Bolivia's Long-Term Foreign and Local Currency Issuer Default Ratings to 'BB-' from 'BB'. The Rating Outlook is Stable. The issue ratings on Bolivia's senior unsecured Foreign and Local Currency bonds have also been downgraded to 'BB-' from 'BB'. The Country Ceiling has been downgraded to 'BB-' from 'BB' and the Short-Term Foreign Currency IDR is affirmed at 'B'. =========== B R A Z I L =========== BRAZIL: Cabinet Member Geddel Vieira Lima Resigns ------------------------------------------------- Rogerio Jelmayer and Luciana Magalhaes at The Wall Street Journal report that a fresh scandal roiled Brazil's political establishment, after a key cabinet minister resigned amid allegations President Michel Temer had tried to help him in a property deal. Brazil's markets and its currency dropped sharply in early trading before regaining ground, according to The Wall Street Journal's Nov. 25 report. Markets feared the turmoil could derail Mr. Temer's push for unpopular austerity measures needed to close a massive budget gap, Reginaldo Galhardo, foreign exchange manager at the Treviso brokerage in Sao Paulo, said, the report notes. "The political scenario in Brazil is the main driver of market behavior today," Mr. Galhardo said, the report relays. "Investors are nervous," he added. Opposition parties seized on the news, calling for an impeachment inquiry into the president's alleged misuse of power, the report discloses. Mr. Temer has denied wrongdoing, says WSJ. Geddel Vieira Lima, the government secretary in charge of the administration's relations with congress, sent a letter to Mr. Temer's office saying he was stepping down. He denied wrongdoing, the report notes. Mr. Lima is the owner of an apartment in a luxury residential tower under construction in the northeastern Brazilian city of Salvador, the report relays. Work on the project was halted this month after the Institute of Historic and Artistic National Heritage, an agency linked to Brazil's Ministry of Culture, raised objections to the structure's potential impact on a neighboring historic district, the report notes. Culture Minister Marcelo Calero told reporters that Mr. Temer called to pressure him to allow construction on the apartment tower to proceed, WSJ relays. Mr. Calero then promptly resigned. According to local media reports, Mr. Calero recorded his conversations with Mr. Temer and has turned them over to federal police, the report discloses. A spokesman for Mr. Temer confirmed in a statement that the president had indeed spoken to Mr. Calero, with the intent of resolving a potential conflict between Mr. Calero and Mr. Lima, the report notes. Mr. Temer denied through a spokesman that his contact with Mr. Calero was inappropriate or an attempt to interfere in the construction matter, the report discloses. Political scientist Carlos Melo said that Mr. Temer's actions created the impression that he was intervening on behalf of Mr. Lima, a key ally and fellow member of the ruling Brazilian Democratic Movement Party who is tasked with pushing the administration's reform agenda through congress, the report says. "The president made a mistake," said Mr. Melo, who teaches at the Insper school of business in Sao Paulo, the report notes. "It causes a big problem with public opinion" at a crucial time for the administration, he added. An October public opinion poll showed that only 14.6% of Brazilians consider Mr. Temer's performance "good" or "great," the report relays. Mr. Temer's political opponents vowed to file impeachment charges against him, raising the prospect of divisive battle in an already polarized country, the report notes. But some Brasilia veterans doubted such efforts would advance in a congress where Mr. Temer currently enjoys strong support among lawmakers, the report relays. "It's another distraction," said Thiago de Aragao, a political scientist at Arko Advice in Bras°lia, notes WSJ. "The departure of (Mr. Lima) ends the problem." After declining sharply on the opening, Brazil's assets regained ground. In early afternoon trading, the main local stock index, the Ibovespa was up 0.12%, the report notes. The real was trading at 3.41 to the dollar, after closing at 3.3938 on Thursday, Nov. 24. "The political scenario in Brazil is the main driver of market behavior today," said Reginaldo Galhardo, foreign exchange manager at the Treviso brokerage in Sao Paulo, the report adds. "Investors are nervous." As reported in the Troubled Company Reporter-Latin America on Nov. 15, 2016, Fitch Ratings has affirmed Brazil's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB'/ Negative Outlook. Brazil's senior unsecured Foreign- and Local- Currency bonds are also affirmed at 'BB'. The Country Ceiling is affirmed at 'BB+' and the Short-Term Foreign and Local-Currency IDRs at 'B'. BR MALLS: Posts 3rdQ Net Income of BRL35.5 Million -------------------------------------------------- Reese Ewing at Reuters reports that Brazil's largest shopping mall operator, said it posted a third-quarter profit of BRL35.5 million ($10.3 million) after showing a net loss of BRL219.4 million in the same period a year ago as general and administrative costs fell. In a securities filing, Rio de Janeiro-based BR Malls Participacoes SA said net revenues fell by 7 percent to BRL328.5 million last quarter compared with a year ago. As reported in the Troubled Company Reporter-Latin America on Nov. 28, 2016, Fitch Ratings has affirmed the ratings of BR MALLS Participacoes S.A. as: -- Foreign currency Issuer Default Rating at 'BB+'; -- Local currency IDR at 'BB+'; -- Long-term national scale rating at 'AA+(bra)'; -- BRL400 million local debentures, first and second tranches due in 2017 and 2019, at 'AA+ (bra)'. ========================== C A Y M A N I S L A N D S ========================== ADA CAPITAL: Members' Final Meeting Set for Dec. 28 --------------------------------------------------- The members of Ada Capital Offshore Fund, Ltd. will hold their final meeting on Dec. 28, 2016, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Morna Chisholm Mourant Ozannes Cayman Liquidators Limited 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands CATAMOUNT DIVERSIFIED: Shareholders' Final Meeting Set for Dec. 28 ------------------------------------------------------------------ The shareholders of Catamount Diversified Managers Fund III Ltd. will hold their final meeting on Dec. 28, 2016, at 10:15 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Morna Chisholm 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands GLOBAL LONG: Shareholders' Final Meeting Set for Dec. 1 ------------------------------------------------------- The shareholders of Global Long Equity Partners Master Ltd will hold their final meeting on Dec. 1, 2016, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. 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 GOLDMAN SACHS COMMODITIES: Members' Final Meeting Set for Dec. 1 ---------------------------------------------------------------- The members of Goldman Sachs Commodities Fund Offshore, Ltd. will hold their final meeting on Dec. 1, 2016, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. 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 GOLDMAN SACHS DIRECT: Members' Final Meeting Set for Dec. 1 ----------------------------------------------------------- The members of Goldman Sachs Direct Strategies Offshore Employee Fund, Ltd. will hold their final meeting on Dec. 1, 2016, at 11:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. 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 GOLDMAN SACHS DIRECT II: Members' Final Meeting Set for Dec. 1 -------------------------------------------------------------- The members of Goldman Sachs Direct Strategies Fund II Offshore, Ltd. will hold their final meeting on Dec. 1, 2016, at 10:10 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. 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 GOLDMAN SACHS FUND: Members' Final Meeting Set for Dec. 1 --------------------------------------------------------- The members of Goldman Sachs Direct Strategies Fund II Offshore (L Holdings), Ltd. will hold their final meeting on Dec. 1, 2016, at 11:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. 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 GOLDMAN SACHS QUANTITATIVE: Members' Final Meeting Set for Dec. 1 ----------------------------------------------------------------- The members of Goldman Sachs Quantitative Currency Fund Institutional, Ltd. will hold their final meeting on Dec. 1, 2016, at 10:20 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. 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 GOLDMAN SACHS US: Members' Final Meeting Set for Dec. 1 ------------------------------------------------------- The members of Goldman Sachs U.S. Equity Absolute Return Fund Offshore, Ltd. will hold their final meeting on Dec. 1, 2016, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. 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 GREEN CYPRESS: Shareholders' Final Meeting Set for Dec. 1 --------------------------------------------------------- The shareholders of Green Cypress Fund, Ltd. will hold their final meeting on Dec. 1, 2016, at 10:40 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. 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 MILLENNIUM ADVISORS: Shareholders' Final Meeting Set for Dec. 6 --------------------------------------------------------------- The shareholders of Millennium Advisors Limited will hold their final meeting on Dec. 6, 2016, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Ltd. c/o Lisa Thoppil One Capital Place, 4th Floor P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands Telephone: (345) 949 0880 Facsimile: (345) 949 0881 VALTERRA FUND: Shareholders' Final Meeting Set for Dec. 15 ---------------------------------------------------------- The shareholders of Valterra Fund will hold their final meeting on Dec. 15, 2016, at 12:10 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Kenneth Stewart Telephone: (345) 747 2739 c/o Apex Fund Services (Cayman) Ltd. 161a Artillery Court, Shedden Road P.O. Box 10085 Grand Cayman KY1 1001 Cayman Islands WAINWRIGHT DREADNOUGHT: Members' Final Meeting Set for Dec. 28 -------------------------------------------------------------- The members of Wainwright Dreadnought Fund Ltd. will hold their final meeting on Dec. 28, 2016, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Morna Chisholm 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands WASHINGTON LOAN: Shareholders' Final Meeting Set for Nov. 30 ------------------------------------------------------------ The shareholders of Washington Loan Funding 2016-MP21 Ltd. will hold their final meeting on Nov. 30, 2016, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Andre Slabbert Estera Trust (Cayman) Limited 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands Telephone: +13456400556 =================== C O S T A R I C A ==================== ETHICAL FORESTRY: Investors Uncertain on Compensation ----------------------------------------------------- Jack Gilbert at Citywire reports that investors in Costa-Rican Ethical Forestry are uncertain whether they can receive compensation following the collapse of the UK firms marketing the unregulated plantation investment scheme because Sipp pension firms have provided different valuations for it. The report relates that the difference in valuations means that some investors have received pay-outs over advice given to invest in Ethical Forestry through their pension, whereas those with a different provider have not. Despite the insolvency of the Ethical Forestery marketing firms earlier this year, Liberty Sipp has claimed the underlying scheme 'remains a viable long-term investment,' Citywire relates. At least 3,000 UK investors are thought to have invested a minimum of GBP18,000 each into Ethical Forestry, meaning it could have over GBP50 million invested in it, according to Citywire. These investors were left uncertain about their investments when the firms promoting the scheme collapsed earlier this year, the report notes. Citywire says the Costa Rican company running the plantation, Ethical Forestry SA, is understood to be still running but 80% of its shares were owned by the UK firms, meaning they were passed to the liquidator HJS Solutions when they collapsed. A deal is being worked on between HJS Solutions and the individual who was running the scheme in Costa Rica, to buy the assets from the liquidator, the report states. Despite the liquidator's claim that a deal was four weeks away in July, this deal is still to be reached. When contacted, HJS Solutions said it will know if a deal is going ahead by this week, Citywire says. When an investor complains about an adviser to the Financial Services Compensation Scheme (FSCS) it will normally ask the Sipp provider for a valuation of the underlying investment in order to work out how much compensation the individual is due, the report says. In a letter, seen by Citywire's New Model Adviser(R), the FSCS says it could not 'fully quantify' any possible loss in Ethical Forestry until the client 'sells or assigns ownership interest in the property'. As such the FSCS said it would base its compensation of the investment on the valuation given by the Sipp provider, Citywire relays. Liberty Sipp is giving a 'book value', meaning the amount the investor initially paid, for Ethical Forestry, the report notes. John Fox, director of Liberty Sipp, said this was because the investment was still viable, despite the collapse of the UK companies, adds Citywire. The UK group was split into four companies; Ethical Forestry Limited, Ethical Forestry Holdings, EF Forestry Management Limited, EF Sales and Marketing Limited. In January the firms appointed HJS Solutions as a liquidator, according to Citywire. ============= J A M A I C A ============= MAVIS BANK: Owes J$200 Million, Coffee Farmers Demand Answers ------------------------------------------------------------- RJR News reports that Blue Mountain Coffee farmers in St. Thomas who said they are owed in excess of J$200 million dollars by the Mavis Bank Coffee Factory, are demanding answers as to why they have not been paid. The disgruntled farmers told RJR News that they were informed by the selectors at the depot that they should not expect payment as was agreed and that no date has been set for payment, according to RJR News. The farmers say they would normally receive payment on Thursdays, two days after the coffee beans are supplied to the factory, the report notes. They say they have been supplying coffee beans to the factory for the past three weeks and were promised payment, the report relays. Some 500 farmers are said to be affected. =========== M E X I C O =========== FINANCIERA FINCA: S&P Keeps 'BB-/B' ICRs on CreditWatch Developing ------------------------------------------------------------------ S&P Global Ratings said it kept its 'BB-/B' global scale and 'mxBBB+/mxA-2' national scale issuer credit ratings on Financiera Finca, S.A. de C.V. SOFOM E.N.R. (FINCA) on CreditWatch, where they had been placed with developing implications Nov. 16. The CreditWatch developing listing means S&P could affirm, raise, or lower the ratings following its review. S&P had placed the ratings on CreditWatch following the announcement that Te Creemos Holding, S.A.P.I. de C.V. (Te Creemos; not rated) signed a definitive agreement to acquire FINCA. S&P's analysis needs to incorporate the new corporate structure and strategy that the acquirer intends to implement and understand how FINCA would fit into the group's overall strategy. "We will assess if the acquisition could have a positive impact on the entity's business position through additional business lines, higher volumes, and diversified income that the acquisition would bring," said S&P Global Ratings credit analyst Elena Enciso. Under this scenario, S&P could revise its assessment of FINCA's business position to a stronger category and raise the ratings if other individual credit profile factors are unchanged. On the other hand, the entity's risk-adjusted capitalization could fall, depending on the balance between assets and capital, which could weaken FINCA's stand-alone credit profile. S&P's ratings on FINCA reflect its weak business position based on its focus on the microfinance sector, which is sensitive to economic downturns, resulting in volatile operating revenues as S&P has seen in the past two fiscal years, strong capital and earnings supported by our estimated risk-adjusted capital (RAC) ratio at about 14% for the next two years, moderate risk position based on FINCA's lending and underwriting standards that S&P considers as relaxed, and adequate funding and adequate liquidity. S&P will resolve the CreditWatch once it obtains the necessary information from Te Creemos to assess the final impact on FINCA's business position. S&P expects to obtain from Te Creemos information on its strategic planning, including growth and financial objectives for the entity, and assess the final impact. S&P expects to resolve the CreditWatch within the next three months. NEMAK SAB: Fitch Affirms 'BB+' IDR & Revises Outlook to Positive -------------------------------------------------------------- Fitch Ratings has affirmed Nemak, S.A.B. de C.V.'s Long-term Issuer Default Ratings at 'BB+' and its long-term national scale rating at 'AA-(mex)'. The Rating Outlook has been revised to Positive from Stable. The revision of the Outlook to Positive reflects Fitch's view that Nemak's credit metrics should continue to strengthen over the next two to three years, as demand for the company's high value added aluminum engine blocks and structural products should remain sound and result in compound annual consolidated equivalent volume growth of around 3%. Much of the growth is expected to come from the company's products in Europe and Asia. The expansion of Original Equipment Manufacturers (OEM) in Mexico should also bolster demand. The revision also reflects Fitch's view that adverse U.S. trade policy against Mexico would not be sufficient to reverse the deeply rooted integration of the automotive industry in North America. As a result, Nemak's results are not expected to be changed materially by policy changes of the new administration. The long average life of vehicle platforms and immediate capacity constrains in the U.S. would make production relocation cost prohibitive for OEMs. Further the cost competitiveness of Mexico against all major vehicle producing hubs including the U.S. should be sustainable. The ratings reflect Nemak's business position as a large Tier-1 supplier of aluminum components, regional and product-portfolio diversification, low cost structure and solid funds from operations. The ratings also reflect the cyclicality of the automotive industry, the company's still large concentration in North America and its exposure to Detroit's three OEMs. Other concerns include the company's acquisitive nature and at times significant capex requirements; although strong cash flow from operations and projected free cash flow (FCF) suggest that the company should be able to comfortably reduce its net debt/EBITDA leverage to below 1.5x by 2018. KEY RATING DRIVERS Strong Global Business Position Nemak's ratings reflect the company's strong position in high-tech aluminium components for the automotive industry in North American, South American and European markets; its presence in high-growth regions, such as Asia and its high percentage of installed capacity in low-cost countries. The ratings also reflect Nemak's long-term customer relationships, its use of aluminium price pass through contracts that reduce raw material volatility, its position as an essential supplier for Detroit's OEMs and its participation in several of the largest global engine platforms. North America Slowing Down The company derives about two thirds of its EBITDA from North America, primarily through the sale of components used in the assembly of vehicles sold in the U.S. where total light vehicle sales grew strongly during 2009-2015. Fitch believes U.S. vehicle sales should remain at around 17 million over the intermediate term, slightly below the 17.5 million expected for 2016. Nemak has continued to gain incremental business which should position the company well to continue to grow volumes despite slower industry tailwinds in the U.S. Although uncertainties regarding U.S. trade policy have increased, Fitch believes automotive industry integration between the U.S. and Mexico will be difficult to reverse. Long vehicle production lead-times and OEM cost considerations should prevent major capacity relocations Further, Mexico's cost competitiveness would likely remain despite potential tariff increases. Favorable Operating Performance Nemak's financial performance has continued to strengthen in 2016 primarily due to improved mix of higher value added products, a strong U.S. dollar, and lower energy prices. The company is also showing continued solid performance in Europe where volumes have grown 9% on a year-to-date basis as of September 2016 after growing 8% during fiscal year 2015. Nemak generated USD776 million of EBITDA during the latest 12 months (LTM) ended Sept. 30, 2016, which compares favorably with EBITDA of USD699 million in 2014 and USD611 million in 2013. Fitch is projecting that EBITDA will strengthen to around USD800 million in 2016 and will remain solidly above that level in 2017. Lower Expected Leverage Free cash flow (FCF) was negative USD22 million during the LTM ended September 2016 and compares to positive USD39 million during full year 2015. Total debt/EBITDA ratio was 1.9x as of the LTM ended third-quarter of 2016, which is slightly above the 1.7x registered at year-end 2015. Fitch estimates neutral FCF in 2016 and possibly 2017 as the company continues to invest in expanding its casting and machining capabilities to serve new programs awarded. Net leverage should be around 1.7x in 2016 and 1.6x in 2017 compared to 1.6x at year-end 2015. Nemak's total debt including capital leases as of third-quarter 2016 was USD1.5 billion. KEY ASSUMPTIONS -- North America auto production grows low-single digits in 2016 and flattens-out over the intermediate term. -- Equivalent unit volume grows low to mid-single digits over the intermediate term. -- Total debt declines below USD1.4 billion over the intermediate term. -- Capex peaks in 2016, and then falls to more normalised levels in subsequent years. -- Dividends of about USD95 million per year. -- The U.S. dollar exchange rate against the Mexican peso does not weaken significantly below MXN20:USD1. RATING SENSITIVITIES Future developments that may, individually or collectively, lead to a positive rating action include: -- Gains in product, customer or geographical diversification coupled with increased volumes that lead to continued strength in EBITDA generation; -- Sustained positive FCF (FCF margin around 3%); -- Sustained levels of total debt/EBITDA around 1.5x; -- Strong liquidity supported by a healthy combination of cash, FCF generation and committed credit facilities relative to upcoming debt obligations. Future developments that may, individually or collectively, lead to a negative rating action include: -- A severe decline in North American vehicle production that leads to reduced demand for Nemak's products; -- A reduction in EBITDA generation resulting in total debt/EBITDA above 3x for a sustained period of time; -- Sustained negative FCF; -- Sustained weak liquidity relative to upcoming debt obligations; -- Large acquisitions or investments financed mostly with debt resulting in an expectation of higher leverage levels in the mid- to long term. LIQUIDITY Nemak's liquidity position is considered sound. As of Sept. 30, 2016, the company's short-term debt was USD198 million. This debt is mostly composed of working capital financing, which favorably compares to USD108 million of non-restricted cash and USD354 million in undrawn committed credit lines maturing in 2018 and 2019. Fitch projects Nemak's cash flow from operations (CFFO) should remain strong at around USD600 million. This strong level of CFFO coupled with low leverage and good access to bank loans and debt capital markets should allow Nemak to continue to rollover debt maturities, including working capital financing, of about USD450 million over the next two years. At the end of 2015 Nemak obtained USD300 million under a syndicated bank loan and used part of the proceeds to repay MXN3.5 billion of its local Certificados Bursatiles with final maturity in 2017. FULL LIST OF RATING ACTIONS -- Long-term Foreign currency Issuer Default Rating (IDR) at 'BB+'; -- Long-term Local currency IDR at 'BB+'; -- Long-term national scale rating at 'AA-(mex)'; -- USD500 million senior unsecured notes due 2023 at 'BB+'. GRUPO CEMENTOS: Fitch Affirms 'BB' IDR & Removes from Watch Neg. ---------------------------------------------------------------- Fitch Ratings has affirmed Grupo Cementos de Chihuahua, S.A.B. de C.V.'s (GCC) Long-Term local and foreign currency Issuer Default Ratings at 'BB'. Fitch has removed the IDRs from Rating Watch Negative and assigned a Stable Outlook. The removal of the Rating Watch Negative follows the announcement that GCC concluded the acquisition of USD306 million in assets previously owned by Cemex, S.A.B. de C.V. The assets involve a cement plant in Odessa, TX; two cement distribution terminals located in Amarillo and El Paso, Texas; and concrete, aggregates, asphalt and building materials businesses in El Paso, Texas and Las Cruces, New Mexico. The Stable Outlook reflects Fitch's expectations of pro forma debt/EBITDA leverage remaining close to 3.5x in 2017 before declining around 3.2x by 2018. GCC's ratings reflect the company's solid business position in the cement, ready mix and aggregates segments in the regions where it has a presence; diversified operations in Mexico and the U.S. in the non- residential and residential sectors; as well as positive free cash flow generation through the recent industry cycle. The ratings are limited by the company's scale relative to industry peers' and by the cyclicality of the cement industry. KEY RATING DRIVERS Leading Market Shares GCC is the largest cement producer in the state of Chihuahua across all product segments. It also has strong cement market positions in Colorado, North and South Dakota, Wyoming, New Mexico and Western Texas. Its contiguous presence from Chihuahua in northern Mexico to North Dakota and efficient distribution and logistics allow GCC to serve markets in 14 states across the U.S. Midwest, and the Southwest and Rocky mountain regions. Cemex's Assets in Texas The purchase of Cemex's assets was financed through incremental debt of about USD250 million and cash. The purchase involved a cement plant in Odessa, TX with an annual production capacity of 514,000 tons as well as other ready-mix, aggregates and asphalt assets. Debt maturities of the new debt will be low during the first couple of years as most of the company's cash flow from operations (CFFO) will be used to finance the expansion to its South Dakota cement plant. This expansion will increase plant capacity by 440,000 tons per year. Sound Operating Performance Net sales during 2014 and 2015 remained relatively stable at around USD750 million and declined modestly to USD740 million on a LTM basis to Sept. 30, 2016, mostly reflecting a weaker Mexican peso and stable consolidated volumes at robust levels. Operating EBITDA strengthened to USD182 million as of LTM to Sept. 30, 2016, from USD166 million in 2015 and fromUSD148 million due to strong pricing and lower fuel, freight and electricity expenses. Solid Cash Flow Generation GCC's CFFO was USD122 million during 2015, above the USD108 million registered during 2014, and significantly higher than the USD60 million to USD80 million per year for 2010 to 2013, primarily due to solid performance of GCC's U.S. division. Fitch projects organic CFFO to remain around USD130 million over the next two years, reflecting modest volume declines in Mexico due to lower infrastructure spending and flat volumes in the U.S., offset by a robust pricing environment in both countries. An improved product mix in Chihuahua into higher margin retail cement should also be positive. Manageable Exposure to Oil and Gas The majority of GCC's markets showed above-average volume recovery from 2011 to 2014, partly due to their direct and indirect exposure to the agriculture and oil and gas sectors, which showed positive momentum. In Fitch's view, a slowdown in cement demand related to cuts in energy infrastructure spending should be manageable for GCC as residential construction is projected to expand at a faster pace in most markets. Public construction spending should also counter some of the negative effect. High Pro Forma Leverage GCC's debt/EBITDA leverage as of third-quarter 2016 was 2.6x. Pro forma total debt should be around USD700 million and gross leverage close to 3.5x in 2017. Meaningful deleveraging to below 3x should occur by 2019 as the company is in the midst of a USD90 million expansion to its South Dakota plant. The expansion is expected be completed during 2018 and should be financed organically, leaving only inorganic cash flow generation to support only modest deleveraging during 2017. KEY ASSUMPTIONS -- Revenues measured in U.S. dollars grow double digits in 2017 mainly reflecting the acquisition of Cemex assets, and high single-digits in 2018 reflecting the additional capacity; -- EBITDA rises above USD200 million in 2017 and strengthens further in 2018; -- Debt increases about USD250 million during 2016 to fund the acquisition; -- Capex is financed mostly through internal cash flow generation and available cash; -- Dividends remain low in the USD10 million to USD15 million per year range. RATING SENSITIVITIES Future developments that may, individually or collectively, lead to a negative rating action include: -- Weak operational results reflecting increased price competition, market share loss or a material slowdown in cement demand on GCC's key markets of Chihuahua, Colorado, Western Texas, South Dakota and New Mexico; -- A large debt-financed acquisition that increases total leverage above 3.5x; -- A down turn industry cycle that causes net debt/EBITDA to rise above 3.0x; -- Sustained negative FCF generation. A rating upgrade in the near term is unlikely considering the company's business profile, target capital structure and current credit metrics. A return to positive FCF after its South Dakota expansion project, together with a track record of maintaining total leverage levels at or below 2x and a strong liquidity profile would be considered positive for credit quality. LIQUIDITY GCC's liquidity is sound. The company's pro forma cash position as of Sept. 30, 2016, is estimated at around USD130 million and Fitch expects its FCF to be neutral during 2017 and positive in 2018. This compares to debt maturities of USD4 million for 2017 and USD16 million for 2018 under the new bank debt. Committed credit facilities of USD15 million maturing over the next year provide additional short-term liquidity support. GCC's total debt as of Sept. 30, 2016, was USD442 million and its net debt/EBITDA leverage was 1.4x. The company maintains good access to bank lending as evidenced by debt refinancing during 2013, 2015 and 2016. FULL LIST OF RATING ACTIONS Fitch has affirmed GCC's ratings as: -- Long-term foreign currency Issuer Default Rating at 'BB'; -- Long-term local currency IDR at 'BB'; -- USD260 million senior notes due 2020 at 'BB'. ====================== P U E R T O R I C O ====================== CLINICA SANTA ROSA: U.S. Trustee Ordered to Appoint PCO ------------------------------------------------------- Judge Edward A. Godoy of the United States Bankruptcy Court for the District of Puerto Rico directs the United States Trustee to appoint a Patient Care Ombudsman for Clinica Santa Rosa, Inc. The Court gives the United States Trustee or the Debtor until December 7, 2016, to inform the court, in writing, why the appointment of an ombudsman is not necessary for the protection of the patients. About Clinica Santa Rosa Clinica Santa Rosa, Inc. filed a Chapter 11 petition (Bankr. D. P.R. Case No.: 16-09033) on November 14, 2016, and is represented by Antonio I Hernandez Santiago, Esq. in San Juan, Puerto Rico. At the time of the filing, the Debtor has $1 million to $10 million in estimated assets and $10 million to $50 million in estimated liabilities. The petition was signed by Fernando Alarcon Ocasio, president. A copy of the Debtor's list of 20 largest unsecured creditors is available for free at http://bankrupt.com/misc/prb16-09033.pdf POPULAR INC: Fitch Affirms 'BB-' Long Term Issuer Default Rating ---------------------------------------------------------------- Fitch Ratings has completed a peer review of its two rated Puerto Rican banks and has affirmed the Long-Term Issuer Default Ratings (IDRs) at 'BB-' and Short-Term IDRs at 'B' for Popular Inc. (BPOP) and its subsidiaries. The Rating Outlook is Stable. KEY RATING DRIVERS IDRs, VRs, AND SENIOR DEBT BPOP's current rating levels incorporate the significant challenges facing Puerto Rican banks. The Puerto Rican bank Viability Ratings (VRs) and IDRs are constrained by the weak economic conditions within their main operating market, the Commonwealth of Puerto Rico (PR). The affirmation and Stable Outlook reflect Fitch's view that the bank's current operating performance is sustainable and will likely continue despite the difficult operating environment. Fitch recognizes stabilizing trends in BPOP's asset quality, earnings, capital, and deposit funding over the last few years. Fitch also believes BPOP's ratings are well situated relative to the challenging operating environment. Fitch believes the Puerto Rico Oversight, Management, and Economic Stability Act (PROMESA) has removed a degree of uncertainty in the operating environment and may address some of the recessionary and fiscal challenges facing the Commonwealth if fully implemented. Although economic pressures may ensue in the near term, the fiscal oversight board should ensure fiscal discipline for the government, assuming the government complies, which Fitch views as a positive over the longer term. The affirmation of BPOP's ratings and the Stable Outlook reflects the company's dominant franchise across most loan and deposit categories versus peers and that the bank's current operating performance is sustainable in spite of the challenging operating environment. Fitch recognizes improvements over a number of years to BPOP's core fundamentals such as stabilization of credit trends, earnings, capital, and deposit funding. Fitch also recognizes BPOP's solid and consistent Dodd Frank Act Stress Testing (DFAST) results, which incorporate punitive economic assumptions, as well approval to reinstate quarterly dividends in Q3 2015. Asset quality remains in line with the current rating as the company's NPA ratio (includes accruing TDRs and OREO, covered and non-covered) still remains elevated at 7.9% as of 3Q16 and NCOs at 0.67% as of 3Q'16 are still much higher than U.S. Mid-Tier peers. BPOP has taken significant steps to reduce its problem assets including the successful execution of bulk loan sales, which has helped reduce NPAs since the peak in 2010. However, prospectively, Fitch does not expect much improvement in asset quality metrics beyond current levels given the challenging operating environment. Additionally, BPOP's loan portfolio includes $588 million of covered loans, where risk of loss is largely borne by the FDIC. Although Puerto Rican consumers have been resilient, continued stress in the local economy, especially during the early phases of PROMESA implementation, may pressure borrowers in the short term. BPOP may be exposed to such changes given its exposure to consumer-related assets. In addition, during 2016, BPOP continued to reduce its indirect and direct PR government exposure. In Fitch's view, exposure to the commonwealth and its instrumentalities is manageable and our expectations for severe losses have been reduced given the orderly restructuring process established under PROMESA. Core earnings continue on a positive trend, and Fitch expects ROA, NIM and PPNR-to-average assets will remain in line with current levels, which supports the rating. Although slow-to-negative economic growth in Puerto Rico may be the norm for some time to come, the company's growth strategy in the U.S., expectations for rising interest rates in 2016 as well as an improving deposit cost profile could provide a partial offset. Similar to most peers, BPOP has improved its capital position following the peak of the crisis. At 3Q'16, BPOP's TCE and Common Equity Tier 1 ratios were 12.13% and 16.64%, respectively and reflect an appropriate level of capitalization given its risk profile. The company also remains in compliance, by a sizable margin, with its regulatory order minimum capital ratios. Fitch believes that as the company's core earnings continue to improve, its capital position will be maintained well above average levels as any additional shareholder capital return actions are expected to be modest. The company's capital profile is also supported by its Evertec common stock investment, which has a current market value of $196 million compared to a book value of $37 million. Any gains on sale would also be accretive to the company's capital position. BPOP has been reducing its reliance on non-core funding sources, particularly higher cost brokered deposits, over the past several quarters, which has improved the overall stability of its deposit base. Overall, compared to peers, BPOP has a leading deposit franchise and a solid funding profile driven by a favorable loan- to-deposit ratio, currently at 77%. Historically, BPOP's funding profile has been weaker when compared to U.S. bank peers given greater reliance on non-core funding sources. Presently, BPOP's VR is higher than Puerto Rico's commonwealth debt rating of 'D'. This reflects Fitch's view that the Commonwealth of Puerto Rico operates broadly within the legal system of the United States and transfer and convertibility risk is not foreseeable, as Puerto Rican banks are regulated by the U.S. Federal Reserve and Federal Deposit Insurance Corporation. SUPPORT RATING FLOOR The Support Rating of '5' and Support Ratings Floor of 'NF' reflect Fitch's view that BPOP is not considered systemically important and therefore, the probability of support is unlikely. The IDRs and VRs do not incorporate any support. LONG- AND SHORT-TERM DEPOSIT RATINGS BPOP's uninsured deposit ratings at its subsidiary banks are rated one notch higher than BPOP's IDR and senior unsecured debt rating because U.S. uninsured deposits benefit from depositor preference. U.S. depositor preference gives deposit liabilities superior recovery prospects in the event of default. SUBORDINATED DEBT AND OTHER HYBRID SECURITIES Hybrid capital instruments issued by BPOP are notched down from the company's VR in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles, which may vary considerably. BPOP's preferred stock and trust preferred stock rating at 'B-' is three notches below its Viability Rating (VR) of 'bb-', in accordance with Fitch's assessment of the instruments' non- performance and loss severity risk profiles for issuers that have VRs rated below 'bb+'. HOLDING COMPANY BPOP has a bank holding company (BHC) structure with the bank as the main subsidiary. IDRs and VRs are equalized with those of the operating companies and banks, reflecting its role as the bank holding company, which is mandated in the U.S. to act as a source of strength for its bank subsidiaries. Double leverage is below 120% for the BPOP parent company. SUBSIDIARY AND AFFILIATED COMPANIES All of the BPOP entities factor in a high probability of support from the parent. This reflects the fact that performing parent banks have very rarely allowed subsidiaries to default. It also considers the high level of integration, brand, management, financial and reputational incentives to avoid subsidiary defaults. RATING SENSITIVITIES IDRs, VRs, AND SENIOR DEBT The rating is sensitive to changes in Fitch's view of the operating environment, positive or negative. However, Fitch believes the rating is solidly situated at the current level based on current and expected financial performance. Fitch believes PROMESA removes a degree of uncertainty in the operating environment and provides a credible path forward for the recessionary and fiscal challenges facing the Commonwealth, if fully implemented. Although incremental improvement in the operating environment is credit positive for BPOP, the company's current ratings are still higher than what the operating environment alone would imply, which limits upside potential in the near term. Fitch assumes the fiscal oversight board will carry out its functions and begin to restore fiscal discipline to the Commonwealth. If that were not to occur, Fitch would re-visit its ratings for Puerto Rican banks. Fitch views BPOP's capital levels as a rating strength. Although not expected, aggressive capital management would be viewed negatively. BPOP's current ratings incorporate the potential for write-downs on its securities holdings and credit exposures to the Commonwealth and its instrumentalities. However, should market events in the Commonwealth of Puerto Rico result in losses beyond our expectations and/or the company's exposure to the Puerto Rican government materially increases, negative pressure on the ratings could develop. SUPPORT RATING AND SUPPORT RATING FLOOR The Support Rating and Support Rating Floor are sensitive to Fitch's assumption around capacity to procure extraordinary support in case of need. LONG- AND SHORT-TERM DEPOSIT RATINGS The ratings of long- and short-term deposits issued by BPOP subsidiaries are primarily sensitive to any change in the company's IDRs. This means that should the Long-Term IDR be downgraded, deposit ratings could be similarly affected. SUBORDINATED DEBT AND OTHER HYBRID SECURITIES The ratings of hybrid securities are sensitive to any change in BPOP's VR or to changes in BPOP's propensity to make coupon payments that are permitted but not compulsory under the instruments' documentation. HOLDING COMPANY If BPOP became undercapitalized or increased double leverage significantly, there is the potential that Fitch could notch the holding company IDR and VR from the ratings of the operating companies. SUBSIDIARY AND AFFILIATED COMPANIES As the IDRs and VRs of the subsidiaries are equalized with those of BPOP to reflect support from their ultimate parent, they are sensitive to changes in the parent's propensity to provide support, which Fitch currently does not expect, or from changes in BPOP's IDRs. Fitch has affirmed the following ratings: Popular, Inc. -- Long-term IDR at 'BB-'; Outlook Stable; -- Senior unsecured at 'BB-'; -- Short-term IDR at 'B'; -- Short-term Debt at 'B'. -- Viability rating at 'bb-'; -- Preferred stock at 'B-'; -- Support at '5' -- Support floor at 'NF'. Popular North America, Inc. -- Long-term IDR at 'BB-'; Outlook Stable -- Senior unsecured at 'BB-'; -- Short-term IDR at 'B'; -- Short-term Debt at B -- Viability rating at 'bb-'; -- Support at '5' -- Support floor at 'NF'. Banco Popular North America -- Long-term IDR at 'BB-'; Outlook Stable -- Long-term deposits at 'BB'; -- Short-term IDR at 'B'; -- Short-term deposits at 'B'. -- Viability rating at 'bb-' -- Support at '5' -- Support floor at 'NF'. Banco Popular de Puerto Rico -- Long-term IDR at 'BB-'; Outlook Stable -- Short-term IDR at 'B'; -- Short-term deposits at 'B'; -- Viability rating at 'bb-'; -- Support at '5' -- Support floor at 'NF'. BanPonce Trust I -- Trust preferred at 'B-'. Popular Capital Trust I -- Trust preferred at 'B-'. Popular Capital Trust II -- Trust preferred at 'B-'. Popular North America Capital Trust I -- Trust preferred at 'B-'. Popular Capital Trust III -- Trust preferred at 'B-' ================= V E N E Z U E L A ================= PETROLEOS DE VENEZUELA: Curacao Refinery in Financial Crisis ------------------------------------------------------------ Caribbeannewsnow.com reports that the Venezuelan state oil company Petroleos de Venezuela, S.A., operator of the Isla oil refinery in Curacao, is in financial trouble. According to the prime minister of Curacao, Dr. Bernhard Whiteman, managers must hand in their cars and there is no money to fund the traditional Christmas decorations and carnival parades, Caribbeannewsnow.com notes. Staff over 60 years of age do not have to continue working until retirement, according to Caribbeannewsnow.com. In the heads of agreement which was signed with the Chinese company Guangdong Zhenrong, it was agreed that the company can take over the oil refinery earlier than 2019 if it goes all wrong with PdVSA, the report relays. The contract with PdVSA will expire in that year. Guangdong Zhenrong has 28 days to demonstrate that they have sufficient financial resources to take over the oil refinery in Curacao and to modernize it, the report notes. This is one of the clauses in the heads of agreement. On December 17, Guangdong Zhenrong must hand over a letter of guarantee from a bank to prove that the company has its financial affairs in order, the report says. Other promises made in the heads of agreement include a first complete draft of the technical plan for the oil refinery must be presented before April 30 next year, the report discloses. There must also be a plan for the oil terminal at Bullenbaai, the report notes. Guangdong Zhenrong wants to invest billions in the refinery. The Chinese company also wants to create 1,200 jobs for the local market, the report adds. As reported in the Troubled Company Reporter-Latin America on Nov. 22, 2016, Moody's Investors Service assigned a Caa3 rating to Petroleos de Venezuela, S.A. (PDVSA)'s 8.5% $3.4 billion in senior secured notes due 2020. The outlook on the rating in negative. =========================== V I R G I N I S L A N D S =========================== XCITE ENERGY: Liquidation Petition Hearing Set for December 5 ------------------------------------------------------------- Alliance News reports that Xcite Energy PLC said a petition to the Eastern Caribbean Supreme Court in the British Virgin Islands requesting the company be put into liquidation, amongst other things, will be heard December 5. The company's shares were suspended from trading on AIM in October after its bondholders rejected a payment plan and petitioned for the appointment of a liquidator for the company, according to Alliance News. At that time, Xcite Energy, which is focused on oil field development in the North Sea, said it believed "that liquidation is unlikely to result in the return of any value to the company's existing shareholders", and therefore requested the immediate suspension of its shares, the report notes. *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Submissions about insolvency-related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 2016. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. * * * End of Transmission * * *