/raid1/www/Hosts/bankrupt/TCRLA_Public/170201.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Wednesday, February 1, 2017, Vol. 18, No. 023
Headlines
A R G E N T I N A
ACI AIRPORT: S&P Affirms 'BB+' Rating on Notes, Outlook Stable
B A H A M A S
BUENOS AIRES CITY: S&P Affirms 'B-' Ratings; Outlook Stable
B A R B A D O S
BARBADOS: Regulator to Decide if Firm Can Takeover Fuel Facility
B R A Z I L
BRASKEM SA: Moody's Says Cetrel Acquisition Credit Neutral
EIKE BATISTA: Jailed in Rio After Return From New York
C A Y M A N I S L A N D S
ROHATYN GROUP: Members Receive Wind-Up Report
SHARPS SP I 2005-RM1N: Members Receive Wind-Up Report
SHARPS SP I 2006-ASAP3N: Members Receive Wind-Up Report
SHARPS SP I 2006-NC2N: Members Receive Wind-Up Report
SHARPS SP I 2006-RS6N: Members Receive Wind-Up Report
SHARPS SP I 2006-FM2N: Members Receive Wind-Up Report
SHARPS SP I 2007-MHL1N: Members Receive Wind-Up Report
STANDARD PACIFIC CREDIT: Members Receive Wind-Up Report
STANDARD PACIFIC FUND: Members Receive Wind-Up Report
STANDARD PACIFIC MASTER: Members Receive Wind-Up Report
M E X I C O
BANCO INDUSTRIAL: S&P Affirms 'BB/B' ICR's; Outlook Negative
CEMEX SAB: S&P Raises Rating Global Scale Ratings to 'BB-'
P A R A G U A Y
* PARAGUAY: New Finc'l Education Campaign To Demolish Money Myths
P U E R T O R I C O
PASO GAS: Hires Vega CPA as Accountant
T R I N I D A D & T O B A G O
TRINIDAD CEMENT: Fitch Hikes Issuer Default Ratings to B+
X X X X X X X X X
LATAM: IMF Forecasts Economic Growth of Just 1.2% for in 2017
- - - - -
=================
A R G E N T I N A
=================
ACI AIRPORT: S&P Affirms 'BB+' Rating on Notes, Outlook Stable
--------------------------------------------------------------
S&P Global Ratings affirmed its 'BB+' issue-level rating on ACI
Airport Sudamerica S.A.'s notes. The outlook remains stable.
"The rating reflects our expectation that the project will
maintain adequate operating and financial performance during the
remaining term of the notes, supported by international traffic
growth levels above GDP in the upcoming three years (converging to
a long-term 2.5% growth) and relatively low operating costs, with
no significant capital expenditures required until the end of the
concession in 2033," said S&P Global Ratings credit analyst Diego
Weisvein.
S&P views factors as key to maintaining the project's financial
performance: a growing economy projected for the upcoming few
years in Uruguay, increasing routes and frequencies being added,
which will increase competition among airlines and help ticket
prices remain accessible to passengers.
Currently limiting the rating is S&P's view of a weak cash
waterfall, in which ACI's notes are structurally subordinated to
PdS' senior notes, and the latter's notes' cash flow waterfall
doesn't prioritize the expenses necessary to maintain operation
before any other use of cash flows. S&P considers this the
structure that better protects a project's ongoing performance.
Within PdS' debt, debt service payment is ahead of operating
expenses. When PdS' debt matures in 2022, the cash waterfall will
not be a limitation anymore for ACI's ratings.
The projected minimum and average DSCRs of 1.26x and 2.22x,
respectively, reflect ACI's strong performance. Particularly, the
minimum DSCR metric is projected for 2018, during which the
project would need to make its first tax payment (as the project
currently defer taxes) and debt service payment is more than 50%
higher than the previous and subsequent years until 2022.
S&P's view of the credit quality during the operations phase of
the project is related to traffic risk and the airport's
competitive position, which S&P views as satisfactory, as the
Montevideo Airport is the main gateway to Uruguay and handles
almost 100% of international traffic.
During 2016, international traffic grew 8% when compared to 2015.
Although Uruguay's GDP (which S&P views as one of the main drivers
to explain traffic growth) grew only a 0.8%, S&P has seen that
Montevideo Airport's traffic (which grew an 8%) was boosted by a
strong growth of new routes and frequencies (43 weekly frequencies
were added in 2016 compared to 2015), which, combined with a
stable exchange rate, helped to maintain low ticket prices.
Additionally, S&P has seen that the Montevideo to Buenos Aires
route, representing about 10% of total departing passengers,
reverted its declining passenger growth trend by new airlines
flying this segment and offering lower prices than Aerolineas
Argentinas, which previously was the sole operator of this route.
It grew 9% in 2016 compared to a decrease of 22% in 2015.
S&P expects high growth to continue in the upcoming three years
(although at a slower pace), helped by a higher expected growth of
Uruguay's economy compared to 2016, new routes, and larger number
of frequencies to be added. Particularly for 2017 and 2018, S&P
is projecting international passenger growth of 5% and 4.5%,
respectively. For the Montevideo to Buenos Aires route, S&P is
assuming flat growth.
The stable outlook reflects S&P's expectation that the project's
operating performance will remain solid in the next 12 months due
to sound international traffic increases (of about 5%), allowing
ACI to achieve a debt service coverage ratios (DSCR) of about
1.35x.
S&P could lower the ratings if passenger traffic declines lowering
the project's revenues, resulting in an expected minimum DSCR
lower than 1.20x.
S&P could take a positive rating action if ACI's notes reach a
minimum DSCR close to 1.4x, for example, due to higher-than-
expected passenger traffic growth or lower operating costs. In
addition, once the senior debt at PdS is fully amortized, S&P
could take a positive rating action because it would eliminate the
negative structural adjustments to the operations SACP stemming
from the weak cash flow waterfall at PdS.
=============
B A H A M A S
=============
BUENOS AIRES CITY: S&P Affirms 'B-' Ratings; Outlook Stable
-----------------------------------------------------------
S&P Global Ratings affirmed its 'B-' foreign and local currency
ratings on the city of Buenos Aires. The outlook remains stable.
Mayor Horacio Larreta's administration has maintained
accountability and fairly prudent financial policies since
assuming office in December 2015, and S&P expects this trend to
continue at least through the end of Mr. Larreta's term in
December 2019. The growing track record of adequate expertise and
consensus to pass timely and prudent legislation, despite the
governing political party's, Propuesta Republicana (PRO), lack of
an absolute majority in the city legislature, supports S&P's
assessment of the city's satisfactory financial management. This,
combined with S&P's expectation that Buenos Aires' economy will
recover over the next couple of years and grow around 2.5% in 2017
and 2018, strengthening the city's already solid revenue base,
anchored by a GDP per capita of around $35,705 over the past
several years, as well as its resilience, has led S&P to raise the
city's SACP by one notch to 'b+'. The SACP is not a rating but a
means of assessing the intrinsic creditworthiness of a LRG under
the assumption that there's no ratings cap. Nevertheless, in S&P's
opinion, Buenos Aires doesn't meet the conditions to have a higher
rating than that of the sovereign. This is principally because of
the very volatile and underfunded institutional framework in
Argentina, under which the city operates. Therefore, S&P affirmed
its 'B-' foreign and local currency ratings on Buenos Aires.
Buenos Aires' fiscal structure shifted in 2016 as part of the
redefinition of its resources and responsibilities relative to
those that the national government handles, and S&P expects these
definitions to continue to evolve over the next couple of years.
Mr. Larreta previously served as current president Mauricio
Macri's chief of staff during the latter's term as mayor of the
city, reflecting the close relationship between the two political
leaders. The two administrations agreed in January 2016 to
transfer responsibility for non-federal law-enforcement powers and
functions to the city, including police, police stations, and the
fire departments, among other responsibilities. The agreement
also included the transfer of funds to Buenos Aires to compensate
for its new responsibilities, increasing its share in
coparticipation transfers to 3.75% from 1.4%. S&P expects the
fiscally responsible manner in which both levels of government
handled the negotiations to continue throughout any such
negotiations at least through 2019.
The overhaul of the city's fiscal structure has increased its
fiscal dependence on the national government. Nevertheless, S&P
still believes that its fiscal flexibility will continue to be
stronger than those of all other rated LRGs in Argentina. S&P
expects Buenos Aires to generate about 76% of its operating
revenue for the next three years, which is higher than those of
most domestic and regional peers, though lower than historical
levels due to the increase in coparticipation transfers since
early 2016. The new spending responsibilities associated with
increased funds will also raise the portion of the city's total
spending dedicated to recurrent and less flexible spending, in
S&P's view. S&P expects capital spending to continue decreasing
relative to total spending in 2016, and reach 13.4%, though S&P
expects it to pick up in 2017 given the city's investment plans
and average 16.3% in the next three years. S&P expects the pickup
in Buenos Aires' capital spending to be directed towards the
continued expansion of the city's subway network; health,
education, road, lighting, drainage and housing infrastructure;
and projects related to the 2018 Youth Olympic Games. At the same
time, S&P still believes Buenos Aires' investment would present a
source of budgetary flexibility under a stress scenario. S&P
estimates that only about one third of projected capital spending
is related to maintenance projects that are less flexible.
Nevertheless, S&P believes that the city is struggling with high
operating costs. Similar to other LRGs in Argentina, Buenos Aires
faces ongoing demands for public-sector wage increases due to high
inflation. Additionally, job security is built into the city's
constitution, which prevents public-sector layoffs through
redundancy programs. In 2017, S&P expects mandatory operating
expenditures -- salaries and interest payments -- to represent 62%
of operating spending. At the same time, S&P believes that Buenos
Aires doesn't have much fiscal room to further raise tax rates due
to the already high tax burden, while its administration ran on a
platform of addressing the generally high tax burden in Argentina.
While S&P doesn't expect the city to raise tax rates or implement
new taxes in the near term, S&P expects the government to update
valuations and tariffs, as well as strengthen tax collections.
S&P expects these efforts, combined with a recovering economy and
the transition of its resources and responsibility structure, will
enable the city's budgetary performance to gradually recover after
weakening in 2015. S&P forecasts that Buenos Aires' operating
surplus will average 9.3% in the next three years, while its
deficit after capital revenues and spending will average 7.4%.
However, S&P believes that the budgetary performance will continue
to be subject to volatility due to inflation, which S&P expects to
remain in the double digits until 2019.
The city's debt management further reflects its growing track
record of prudent policies. Although the structure of its debt
stock still makes it extremely vulnerable to market risk, Buenos
Aires has gradually reduced its exposure to foreign currency over
the past couple of years, and S&P expects it to continue to do so
going forward. As of Dec. 31, 2016, around 83% of the city's debt
was denominated in foreign currency, down from 99% in 2014. At
the same time, S&P expects Buenos Aires to continue to work
towards reducing this risk, though S&P believes that a significant
drop will take time to materialize. Throughout 2017, the city has
a series of dollar or dollar-denominated bond amortizations. S&P
expects the government to meet these payments through proceeds of
peso-denominated issuances in the domestic market, gradually
lowering its foreign currency exposure. The city has already
issued two classes of such notes in the domestic market in January
2017 for more than ARP5 billion. Total foreign-currency-
denominated bond amortizations, for both external and domestic
debt, will reach more than $400 million in 2017. As of Dec. 31,
2016, Buenos Aires' debt burden was ARP47.2 billion, or an
expected 37% of operating revenue. S&P expects the city's debt
stock to rise to nearly 47% by 2019 amid more favorable market
conditions and high financing needs.
In S&P's opinion, the city's contingent liabilities are moderate.
Buenos Aires has 13 public companies, operations of which are not
part of the city's budget. The companies operate in a range of
sectors including finance, transportation, waste management, and
healthcare. The largest entity is the public bank, Banco de la
Ciudad de Buenos Aires, which is the city's official bank and acts
as its financial agent.
Bueno Aires' liquidity is weak, in S&P's opinion. While the
city's issuances in 2016 and early 2017 alleviated its immediate
liquidity needs, S&P estimates that free cash (cash not needed to
meet daily operating needs of planned capital costs) is still
limited. The latter is partly due to high inflation in Argentina
-- which reached 40% in 2016 -- and the lack of financially
profitable investment options in the Argentine financial market,
which has spurred Buenos Aires to boost its capital spending as an
alternative to save liquid cash reserves.
While the city obtained significant levels of financing in 2016
from both national and international sources, S&P believes that
Buenos Aires' access to external liquidity remains uncertain.
This assessment draws on S&P's evaluation of the ongoing
development of the domestic capital markets as well as S&P's
assessment of Argentina's banking system. For the latter, S&P's
Banking Industry Country Risk Assessment (BICRA) is at group '9'.
S&P's BICRAs, which evaluate and compare global banking systems,
are grouped on a scale from '1' to '10', ranging from what S&P
views as the lowest-risk banking systems (group '1') to the
highest-risk (group '10').
At the same time, the city has increasingly resorted to the use of
floating debt to close its fiscal gap. As of Dec. 31, 2015, the
latest period for which S&P has data, the outstanding stock of
floating debt reached ARP8.2 billion, or 10% of Buenos Aires'
operating revenue in the same period.
The outlook on the city is stable, mirroring the stable outlook on
the sovereign's foreign and local currency rating, and reflecting
S&P's expectation that Buenos Aires will maintain its solid
management of financial risks, a strong revenue base, and stronger
budgetary flexibility than those of all other rated LRGs in
Argentina. Given that S&P don't believe that the city meets the
conditions to have a higher rating than the sovereign, it would
only raise its ratings on Buenos Aires in the next 12 months if
S&P was to raise Argentina's foreign and local currency ratings,
along with the transfer and convertibility assessment (T&C). S&P
could also raise the city's rating if it was to significantly
improve S&P's assessment of Argentina's institutional framework
for LRGs, which S&P currently views as very volatile and
underfunded. Such an improvement would have to be accompanied by
a substantial improvement in the city's liquidity such that S&P
determines it could pass a hypothetical sovereign stress test,
leading S&P to determine that Buenos Aires meets the conditions to
have a higher rating than the sovereign. However, S&P doesn't
believe this is likely to occur in the next 12 months. On the
other hand, S&P could lower the ratings on Buenos Aires during the
same period if Argentina's T&C assessment weakens or if S&P was to
lower the sovereign local or foreign currency ratings.
===============
B A R B A D O S
===============
BARBADOS: Regulator to Decide if Firm Can Takeover Fuel Facility
----------------------------------------------------------------
Caribbean360.com reports that it's now up to the Fair Trading
Commission (FTC) to determine whether the leading petroleum in
Barbados can go forward with its controversial plan to take over
government's oil facility.
Prime Minister Freundel Stuart said the utilities regulator has
the information about the planned sale of the Barbados National
Terminal Company Limited to the Sol Group of Companies and is
expected to announce a decision soon, according to
Caribbean360.com.
The petroleum company, owned by Barbadian business magnate Sir
Kyffin Simpson, recently struck a deal with government for the
purchase, the report notes.
However, the move is being highly criticized, with competitor
Rubis Caribbean saying it was "not attractive to us at all" since
Sol was already the dominant player in the Barbados market; and
several groups objecting to the sale, the report relays.
The Clement Payne Movement (CPM) has written to the FTC, and it
has been supported by the island's newest political party,
Barbados Integrity Movement (BIM), the report notes.
In a letter dated January 25, CPM president David Comissiong asked
the FTC to conduct a comprehensive investigation into the proposed
sale, with a view to exploring all of the possible anti-
competition and monopolistic implications, the report discloses.
Mr. Comissiong said it was disturbing that "this level of monopoly
or oligopoly" had emerged where the fuel retail market here was
controlled by a mere two companies -- Rubis Caribbean, with 30 per
cent share and Sol, with the remaining 70 per cent, the report
notes.
But addressing business leaders at a Barbados Chamber of Commerce
and Industry (BCCI) luncheon, Prime Minister Stuart said he
expected the FTC to give a favorable decision, the report
discloses.
"I think that once the FTC sorts itself out and comes to its own
conclusions, we should be able to see a clear way forward. I am
optimistic that we will get this out of the way," Mr. Stuart said,
the report relays.
Mr. Stuart also reiterated that the Barbados National Oil Company
Limited (BNOCL) would continue to source, import, own and
distribute gasoline, diesel and fuel oil to the local market. Mr.
Stuart insisted that the BNTCL had always been a private sector
entity and all Government was doing was putting it back in private
sector hands, the report relays.
"This has not been traditionally a public sector function. BNTCL
replaced another private sector operator, Mobil . . . . What the
Government has decided is that this is a traditional private
sector activity and there it should go back, and that is the
context within which the decision was taken to divest itself of
the terminal facility," the Prime Minister said, the report
relays.
The divestment of BNTCL is expected to rake in about BDS$100
million (BDS$50 million) for the government, the report adds.
===========
B R A Z I L
===========
BRASKEM SA: Moody's Says Cetrel Acquisition Credit Neutral
----------------------------------------------------------
Moody's Investors Service comments that Braskem S.A.'s (Ba1
negative) Board of Directors authorization to the execution of a
sales agreement for the 63.7% stake that Odebrecht Utilities S.A.
holds at waste treatment and environmental services provider
Cetrel S.A is credit neutral for Braskem. The BRL610 million
(USD194 million) transaction, when completed, will worsen the
company's liquidity at a time that it is already impacted by the
global agreement related to the Lava Jato investigations.
Nevertheless, the acquisition will also ensure that Braskem will
continue to be capable of properly addressing environmental
processes, and will help support operations at the Camacari
Petrochemical Complex.
EIKE BATISTA: Jailed in Rio After Return From New York
------------------------------------------------------
Luciana Magalhaes, Rogerio Jelmayer and Samantha Pearson at The
Wall Street Journal report that Brazilian businessman Eike Batista
was jailed in Rio de Janeiro after turning himself in to police
over corruption allegations, marking a rapid fall from grace for
the country's once richest man.
Federal police arrested the former tycoon as he stepped off an
American Airlines flight from New York, where Mr. Batista had been
since authorities issued an arrest warrant and turned to Interpol
for help with the manhunt, according to The Wall Street Journal.
The entrepreneur, once a poster boy of Brazilian capitalism known
for flashy antics like parking his sports cars in his mansion's
living room, was taken to Rio's grim Bangu jail while authorities
probe his alleged links to Brazil's vast corruption scandal, the
report relays.
Police accuse the 60-year-old former billionaire of paying $16.5
million in bribes to the former governor of Rio de Janeiro state,
Sergio Cabral, as part of the country's landmark investigation
into bid-rigging at state-controlled oil company Petroleo
Brasileiro SA, or Petrobras, the report notes.
"I am fulfilling my duty as a Brazilian and returning," Mr.
Batista said in a televised interview with Brazil's Globo shortly
before boarding his flight back to Rio at New York's John F.
Kennedy International Airport. He declined to comment on the
allegations, praising the work of Brazil's corruption-fighting
authorities. "The prosecutors are cleaning up Brazil in a
fantastic way -- a different Brazil is being born," he added.
Mr. Batista's lawyer, Fernando Martins, said the entrepreneur left
Brazil night on a business trip and didn't know police were about
to issue a warrant for his arrest, the report relays. While his
lawyer said Mr. Batista planned to turn himself in, police
declared him a fugitive as concerns grew that the dual Brazilian-
German citizen would be able to use his German passport to flee to
Europe, the report notes.
Brazil was gripped on Monday by television footage showing the
once-powerful oil-and-mining magnate being led across the runway
of Rio's Galeao airport while still clutching a pillow from the
flight. Police later shaved his head in a routine measure to
prevent lice infestations in the prison, causing a furor on social
media as the image-conscious entrepreneur had spoken publicly
about his expensive hair implants, the report notes.
"This shows that the rule of law in Brazil is being implemented,"
said Rafael Alcadipani, an academic at Brazil's Getulio Vargas
Foundation, the report relays.
Brazil's three-year investigation into corruption at Petrobras has
ensnared some of the country's top businessmen and politicians and
helped topple the government of President Dilma Rousseff and her
Workers' Party last year, the report notes.
Rio's ex-governor Mr. Cabral is also being held at Bangu, where
inmates are often forced to sleep on concrete beds and share squat
toilets, the report discloses. Mr. Cabral has denied wrongdoing.
Unlike Mr. Cabral, Mr. Batista will be locked up in a wing for
inmates with no college degrees; he never finished his engineering
degree in Germany, dropping out to prospect for gold in the
Amazon, the report relays.
Only five years ago, Mr. Batista, who was married to a former
Playboy model and carnival queen, was ranked by Forbes as the
world's seventh-wealthiest man, with a fortune of more than $30
billion. But as the global commodities boom drew to an end, his
empire collapsed under a mountain of debt and in 2014, he went on
trial on insider trading charges -- allegations he denied and is
still fighting in court, the report relays.
Prior to his arrest, Mr. Batista had been planning a comeback with
a series of new business ideas involving toothpaste and a generic
version of Viagra, the report adds.
==========================
C A Y M A N I S L A N D S
==========================
ROHATYN GROUP: Members Receive Wind-Up Report
---------------------------------------------
The members of The Rohatyn Group Asia Opportunity Fund, Ltd.
received on Jan. 20, 2017, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
SHARPS SP I 2005-RM1N: Members Receive Wind-Up Report
-----------------------------------------------------
The members of Sharps SP I LLC Net Interest Margin 2005-RM1N
received on Jan. 5, 2017, the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Alan Turner
c/o Andrew Johnson
Circumference FS (Cayman) Ltd.
P.O. Box 32322 Grand Cayman, KY1-1209
Cayman Islands
Telephone: (345) 814 0700
SHARPS SP I 2006-ASAP3N: Members Receive Wind-Up Report
-------------------------------------------------------
The members of Sharps SP I LLC Net Interest Margin 2006-ASAP3N
received on Jan. 5, 2017, the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Alan Turner
c/o Andrew Johnson
Circumference FS (Cayman) Ltd.
P.O. Box 32322 Grand Cayman, KY1-1209
Cayman Islands
Telephone: (345) 814 0700
SHARPS SP I 2006-NC2N: Members Receive Wind-Up Report
-----------------------------------------------------
The members of Sharps SP I LLC Net Interest Margin 2006-NC2N
received on Jan. 5, 2017, the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Alan Turner
c/o Andrew Johnson
Circumference FS (Cayman) Ltd.
P.O. Box 32322 Grand Cayman, KY1-1209
Cayman Islands
Telephone: (345) 814 0700
SHARPS SP I 2006-RS6N: Members Receive Wind-Up Report
-----------------------------------------------------
The members of Sharps SP I LLC Net Interest Margin 2006-RS6N
received on Jan. 5, 2017, the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Alan Turner
c/o Andrew Johnson
Circumference FS (Cayman) Ltd.
P.O. Box 32322 Grand Cayman, KY1-1209
Cayman Islands
Telephone: (345) 814 0700
SHARPS SP I 2006-FM2N: Members Receive Wind-Up Report
-----------------------------------------------------
The members of Sharps SP I LLC Net Interest Margin 2006-FM2N
received on Jan. 5, 2017, the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Alan Turner
c/o Andrew Johnson
Circumference FS (Cayman) Ltd.
P.O. Box 32322 Grand Cayman, KY1-1209
Cayman Islands
Telephone: (345) 814 0700
SHARPS SP I 2007-MHL1N: Members Receive Wind-Up Report
------------------------------------------------------
The members of Sharps SP I LLC Net Interest Margin 2007-MHL1N
received on Jan. 5, 2017, the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Alan Turner
c/o Andrew Johnson
Circumference FS (Cayman) Ltd.
P.O. Box 32322 Grand Cayman, KY1-1209
Cayman Islands
Telephone: (345) 814 0700
STANDARD PACIFIC CREDIT: Members Receive Wind-Up Report
-------------------------------------------------------
The members of Standard Pacific Credit Opportunities Master Fund,
Ltd. received on Jan. 20, 2017, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
STANDARD PACIFIC FUND: Members Receive Wind-Up Report
-----------------------------------------------------
The members of Standard Pacific Pan-Asia Fund, Ltd. received on
Jan. 22, 2017, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
STANDARD PACIFIC MASTER: Members Receive Wind-Up Report
-------------------------------------------------------
The members of Standard Pacific Pan-Asia Master Fund, Ltd.
received on Jan. 22, 2017, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
===========
M E X I C O
===========
BANCO INDUSTRIAL: S&P Affirms 'BB/B' ICR's; Outlook Negative
------------------------------------------------------------
S&P Global Ratings affirmed its 'BB/B' issuer credit ratings on
Banco Industrial S.A. (BI). The stand-alone credit profile (SACP)
remains 'bb+'. The outlook remains negative.
The ratings on BI continue to reflect S&P's view of its solid
market position, mainly in the commercial segment as the largest
financial institution in the country. They also reflect the
bank's projected risk-adjusted capital (RAC) ratio of 5.8% for the
next two years, reflecting the expected capital injection from its
shareholders, its internal capital generation capacity, and a
reduced dividend payout ratio. S&P's assessment also takes into
account BI's balance sheet position with above-average
dollarization and its stable funding base that relies on retail
deposits. BI has a highly reliable customer deposit funding base,
with manageable short-term obligations. The ratings on the
Republic of Guatemala (BB/Negative/B) limit those on BI because
S&P don't believe the bank would withstand a stress scenario for
capital and liquidity, considering the significant exposure that
it has in Guatemala (in terms of government bonds and loans to
local enterprises). This is because S&P rarely rates financial
institutions above the sovereign long-term rating because, during
sovereign stress, the latter's regulatory and supervisory powers
may restrict a bank's or financial system's flexibility, and
because banks are affected by many of the same economic factors
that cause sovereign stress.
CEMEX SAB: S&P Raises Rating Global Scale Ratings to 'BB-'
----------------------------------------------------------
S&P Global Ratings raised its global scale ratings on CEMEX S.A.B.
de C.V. and its subsidiaries, CEMEX Espana S.A., CEMEX Mexico S.A.
de C.V., and CEMEX Inc. to 'BB-' from 'B+'. S&P also raised its
national scale ratings on these companies to 'mxA-/mxA-2' from
'mxBBB/mxA-2'. At the same time, S&P raised its global scale
issue-level rating on CEMEX's senior secured debt to 'BB-' from
'B+'. S&P also raised its national scale issue-level ratings to
'mxA-' from 'mxBBB', on the company's local currency senior
unsecured debt. The recovery rating on all CEMEX's rated senior
debt remains at '3', which indicates that bondholders can expect a
meaningful (50%-70%, in the higher band of the range) recovery in
the event of a payment default. The outlook is stable.
In the past two years, CEMEX has maintained its commitment towards
deleveraging its capital structure and improving debt-protection
metrics in its pursuit of a stronger financial risk profile.
Headwinds stemming from a strong dollar have resulted in a slower-
than-expected recovery in CEMEX's credit metrics due to exchange
rate volatility that has affected EBITDA and due to its exposure
to the dollar-denominated debt, but the company has successfully
executed an effective asset divestment plan that has helped raise
additional cash to repay debt. For this reason, although S&P
expects CEMEX to miss S&P's debt-to-EBITDA forecast of 5.0x by the
end of 2016, the upgrade reflects the company's sustainable
deleveraging trajectory thanks to its already announced asset
divestments and positive cash flow generation prospects. The
upgrade incorporates S&P's expectation that in 2017 CEMEX will
make additional debt repayments of at least $1.4 billion, which
will likely improve its financial risk profile in the short run.
S&P's upgrade is not only related to debt repayments, but also
captures the company's financial discipline to protect its
liquidity and improve profitability. For several years, CEMEX has
refinanced its debt to reduce its exposure to refinancing risk,
and its access to debt capital markets has decreased the cost of
debt by approximately 150 basis points (bps) in the past two
years. Also, CEMEX has returned its EBITDA margins above 20%
through price increases and targeted cost reductions. These
factors result in a positive comparable rating analysis modifier
that leads to one-notch adjustment to our 'b+' anchor score on
CEMEX.
"Our assessment of CEMEX's business risk profile hasn't changed
and still incorporates its leading position in the global cement,
concrete, aggregates, and ready-mix businesses. It also reflects
the company's improved operating efficiencies across its global
operating platform through the rationalization of its asset base,
increased capacity utilization, and streamlined logistics.
Despite our expectations of Mexico's sluggish economy and low
public spending in infrastructure projects, we consider that
positive industry trends in the U.S. market can still drive a 100
bps improvement in consolidated EBITDA margins in the next couple
of years. In our view, the recovery of the U.S. market is now in
full swing. Housing starts are growing at a healthy pace of mid-
to high-single digits, while we continue to see robust growth in
commercial, industrial, and retail construction. Also,
infrastructure spending in the U.S. is finally gaining upward
momentum, and transportation budgets of the U.S. states are in
much better shape because many states have developed dedicated
sources of revenue to fix roads and transportation assets," S&P
said.
CEMEX's financial risk profile remains highly leveraged, and S&P
still views this as a rating weakness in the near term.
===============
P A R A G U A Y
===============
* PARAGUAY: New Finc'l Education Campaign To Demolish Money Myths
-----------------------------------------------------------------
EFE News reports that notions about how to apply for a loan or
estimate a budget are part of the content of a new Paraguayan
financial education campaign, which seeks to demolish some of the
country's long-standing myths like "saving is only for the rich"
and "it's best to keep your money under the mattress."
Close to 90 percent of the population have never been exposed to
financial education, while 86 percent don't save money in a bank
or any other institution, according to an official 2013 survey,
according to EFE News.
The study also concludes that some 42 percent of Paraguayans have
no access to financial services and less than 30 percent of adults
have a bank account, the report notes.
In an attempt to reverse that situation, the Paraguayan government
is promoting the National Financial Inclusion Strategy (ENIF), to
make citizens "better informed and adequately understand how to
use the financial tools they need to make the best decisions,"
Adriana Insaurralde, executive secretary of the National Financial
Inclusion Committee, ENIF's management arm, told EFE.
As part of that strategy, the government is preparing the "Better
That You Know" campaign to disseminate tips about managing
personal finances and, with the use reason, to blow away those
unhelpful money myths, the report relays.
"There are myths like 'money is for spending' and people who say
'I don't need to work up a budget because I have all my accounts
in my head,'" the expert said reprovingly, the report notes.
Against these unhelpful beliefs, ENIF seeks to become "a tool in
the fight against poverty" in a country where 22.2 percent of the
population lives below the poverty line and 9.9 percent live in
extreme poverty, according to official 2015 figures, the report
ads.
As reported in the Troubled Company Reporter-Latin America on
Dec. 22, 2016, Fitch Ratings has affirmed Paraguay's sovereign
ratings as follows:
-- Long-term foreign and local currency Issuer Default Ratings
(IDRs) at 'BB', Outlook Stable;
-- Issue ratings on senior unsecured foreign currency bonds at
'BB';
-- Country ceiling at 'BB+';
-- Short-term foreign and local currency IDRs at 'B'.
======================
P U E R T O R I C O
======================
PASO GAS: Hires Vega CPA as Accountant
--------------------------------------
Paso Gas Corp. seeks permission from the United States Bankruptcy
Court for the District Of Puerto Rico to employ Luis Armando Vega
as the Debtor's accountant.
Services to be rendered by the firm are:
a. Reconciliation of financial information to assist Debtor
in the preparation of monthly operating reports.
b. Assist in the reconciliation and clarification of proof of
claims filed and amount due to the creditors.
c. Provide general accounting and tax services to prepare
quarterly tax return, withholding statements, year-end
reports and income tax preparation.
d. Assist Debtor and Debtor's counsel in the preparation of
the supporting documents for the Chapter 11 Reorganization
Plan.
For the reconciliation of the monthly financial information, which
is subject to the approval of the Court and as specified in the
engagement letter will be hourly rate of $60 plus reimbursement
of actual out-of-pocket incurred in case.
Luis Armando Vega attests that he is a disinterested person as
defined in 11 USC sec. 101(14).
The Accountant can be reached through:
Luis Armando Vega
HC 01 BOX 2937-9615
Florida, PR 00650
Tel: (787)910-9682 / (787)621-9196
Email: luarve@gmail.com
About Paso Gas Corporation
Paso Gas Corporation, based in Manati, Puerto Rico, filed a
Chapter 11 petition (Bankr. D.P.R. Case No. 16-06843) on August
29, 2016. Manolo R Santiago, Esq., at Rivera-Velez & Santiago
LLC, serves as bankruptcy counsel. In its petition, the Debtor
indicated $480,489 in assets and $1.29 million in liabilities. The
petition was signed by Nestor Algarin Lopez, president.
================================
T R I N I D A D & T O B A G O
================================
TRINIDAD CEMENT: Fitch Hikes Issuer Default Ratings to B+
---------------------------------------------------------
Fitch Ratings has upgraded Trinidad Cement Limited's local and
foreign currency Issuer Default Ratings (IDRs) to 'B+' from 'B-'.
The ratings upgrade reflects CEMEX, S.A.B. de C.V. (CEMEX)'s
increased ownership of TCL to at least 67%. Although there are no
legal guarantees or cross-default provisions on the company's debt
obligations, Fitch believes that a tighter relationship with Cemex
should improve TCL's market position and financing options.
The ratings, which are one notch below CEMEX's, reflect the
volatility of TCL's cash flow due to its limited geographic
presence. TCL has relatively small operations with total capacity
across its three cement operating facilities of 2.4 million
tonnes. Further factored into the ratings is its low gross
leverage of about 2.0x due to the company's strong financial
performance during 2015 and 2016, which has allowed it to meet its
debt obligations and reduce its debt.
KEY RATING DRIVERS
Increased Ownership from CEMEX
CEMEX recently announced that its takeover bid to all shareholders
of TCL to acquire up to 132.6 million ordinary shares in TCL had
been declared unconditional. CEMEX's ownership stake in TCL post
this transaction should be at least 67%, and could increase
marginally as CEMEX offer to purchase TCL shares will remain open
until Feb. 7, 2016. CEMEX had increased its ownership in TCL to
39.5% from 20% through a rights offering during 2015. The proceeds
from these offering strengthened TCL's financial position at the
time. Both companies also signed a technical and managerial
services agreement which provided TCL with management, technical
assistance along with additional distribution and logistical
support.
Credit Track-Record Reconstruction
TCL has defaulted on its loans twice in the last five years, which
has been a key driver in the rating. The company took numerous
steps following the 2014 default, including hiring a new
management team, negotiating an equity rights offering with labor
unions and refinancing its debt. Fitch projects that the company
should be able to manage its capital structure going forward and
significantly improve its credit profile, given scheduled
amortizations as well as increased profitability resulting from
cost reduction initiatives.
Low Leverage
TCL's debt as of Sept. 30, 2016 was USD160 million. Its gross
leverage was 2.1x, similar to that registered at year-end 2015.
TCL's EBITDA margins as of the latest 12 months as of third-
quarter 2016 contracted to 24.8%. This compares to 27.8% EBITDA
margin during fiscal year 2015. Most of this decline has been due
to competitive pressure, a fall in clinker exports, and softer
demand for cement in Trinidad & Tobago. Fitch projects TCL gross
debt/EBITDA ratio to remain around 2x during 2017, due to a still
challenging environment.
Leading Caribbean Producer of Cement
TCL is a major producer of cement in the Caribbean with eight
operating companies in Trinidad, Barbados, Guyana, Jamaica and
Anguilla. The company has a dominant market position in the
Caribbean Community (CARRICOM) region particularly in key markets
such as Trinidad & Tobago and Jamaica. A majority of the demand
for shipments of cement to small Caribbean islands is for smaller
quantities, which makes it a less attractive market to many of the
larger cement players not already established in the Caribbean.
TCL's cement plants in the region translate into cost advantages
that are difficult for smaller competitors to replicate.
KEY ASSUMPTIONS
Fitch's assumptions for 2017-2018 are:
-- Low single-digit total cement volumes sales growth;
-- EBITDA margins remain above 21%;
-- Dividends of around USD3 million per year;
-- Positive FCF generation is used to service debt.
RATING SENSITIVITIES
Future developments that may, individually or collectively, lead
to a negative rating action include:
-- Significant deterioration in the Caribbean macroeconomic and
business environment resulting in declining volumes and
profitability;
-- Increased competition resulting in significant EBITDA margin
erosion;
-- Perceived inability to service debt comfortably;
-- Debt to EBITDA above 3.5x and interest coverage below 3x.
A rating upgrade in the near term is unlikely considering the
company's business profile and operating environment. Further
tightening of the relationship TCL's relationship with Cemex could
be considered positive.
LIQUIDITY
The company has relied primarily on bank debt financing, as its
credit history has contributed to tamed investor appetite in the
past, resulting in unfavorable pricing. Consequently, TCL's
liquidity is reliant upon continued FCF generation and stable
cement demand in its main markets to meet its scheduled debt
obligations. The company faces annual amortizations of
approximately USD29 million per year. This compares to a cash
position of USD47 million at as of Sept. 30, 2016 and Fitch-
estimated FCF of around USD15 million per year for 2016-2018.
FULL LIST OF RATING ACTIONS
Fitch has upgraded Trinidad Cement Limited's ratings as follows:
-- Long-Term Foreign Currency IDR to 'B+' from 'B-';
-- Long-Term Local Currency IDR 'B+' from 'B-';
-- USD200 million Senior Secured Term Loan to 'B+/RR4'from
'B-/RR4'.
=================
X X X X X X X X X
=================
LATAM: IMF Forecasts Economic Growth of Just 1.2% for in 2017
-------------------------------------------------------------
EFE News reports that the IMF said that Latin America's economy
would grow just 1.2 percent in 2017, a downward revision of four-
tenths of a percentage point from the prior estimate.
"The projected recovery is weaker than that forecast in October,
given the persistent weakness in some of the principal economies
even though they continue to experience moderate growth,"
International Monetary Fund (IMF) Western Hemisphere Department
director Alejandro Werner said in a press conference, according to
EFE News.
After two years in recession, Brazil will grow an anemic 0.20
percent in 2017, or three-tenths of a percentage point less than
forecast in October, due to the weak recovery in consumer
spending, while Mexico will see its economy grow at just 1.7
percent, down from the previous forecast of 2.3 percent, due to
the "uncertainty" over US trade policy, Mr. Werner said, the
report notes.
The 2017 outlook for Argentina, meanwhile, was revised downward to
2.2 percent due to the slower-than-expected growth in the second
half of last year, the report relays.
Argentina's "real GDP is projected to rebound this year, as higher
real wages boost consumption, stronger external demand supports
exports, and public investment accelerates," the IMF said in its
latest report, EFE News discloses.
Colombia implemented "a more restrictive monetary and fiscal
policy that caused a faster-than-expected reduction in the current
account deficit," the report quoted Mr. Werner as saying.
The Andean nation's "medium-term growth will be reinforced by the
recently signed peace agreement and a structural tax reform, which
will create space for key infrastructure and social spending," the
IMF said, the report notes.
Chile and Peru, according to the IMF's estimates, will grow faster
than the regional average, achieving gross domestic product (GDP)
growth of 2.1 percent and 4.3 percent, respectively, thanks to the
rebound in commodity prices, especially copper, the report relays.
Venezuela, however, will continue to experience problems, the
international financial organization said, the report discloses.
"Venezuela remains in a deep economic crisis on a path to
hyperinflation, led by a large fiscal deficit that has been
monetized, extensive economic distortions, and a severe
restriction on the availability of imports of intermediate goods.
Economic activity is projected to contract sharply in 2017, while
inflation is expected to accelerate further," the IMF said, the
report adds.
***********
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, Ivy B.
Magdadaro, and Peter A. Chapman, Editors.
Copyright 2017. 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 * * *