/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170206.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, February 6, 2017, Vol. 18, No. 026 Headlines B R A Z I L PARANA BANCO: S&P Affirms 'BB-/B' Ratings, Off Watch Negative RUMO SA: Fitch Assigns 'BB-' Rating to New $300MM Global Notes C A Y M A N I S L A N D S LIBERTY HOLDINGS: Shareholders' Final Meeting Set for Feb. 3 LV PACIFIC: Shareholders Receive Wind-Up Report PANTHALASSA GP: Shareholders Receive Wind-Up Report PRASLIN LIMITED: Shareholder Receives Wind-Up Report RIOGAMA LIMITED: Shareholders Receive Wind-Up Report SECUREX LIMITED: Shareholders Receive Wind-Up Report STRAVA ENHANCED: Shareholder Receives Wind-Up Report STRAVA OFFSHORE: Shareholder Receives Wind-Up Report TETON SPC: Shareholder Receives Wind-Up Report THREE MOUNTAIN: Shareholders Receive Wind-Up Report THREE MOUNTAIN MASTER: Shareholders Receive Wind-Up Report Y2L COMPANY: Shareholders Receive Wind-Up Report M E X I C O MEXICO: Avocado Producers Diversify Markets Due to U.S. Obstacles MEXICO: No Gasoline Price Hike Until Feb. 17 Due to Protests P U E R T O R I C O DACCO TRANSMISSION: Seeks to Hire Jones Day as New Legal Counsel PUERTO RICO: Passes Bill Freezing Debt Payments Until May 1 T R I N I D A D & T O B A G O TRINIDAD CEMENT: S&P Raises CCR to 'B', Off CreditWatch Positive TRINIDAD & TOBAGO: Public Asked to Comment on FATCA X X X X X X X X X LATAM: Crime Costing Region US$261 Billion Yearly, IDB Says * BOND PRICING: For the Week From Jan. 30 to Feb. 3, 2017 - - - - - =========== B R A Z I L =========== PARANA BANCO: S&P Affirms 'BB-/B' Ratings, Off Watch Negative ------------------------------------------------------------- S&P Global Ratings affirmed its 'BB-/B' global scale and 'brA' national scale ratings on Parana Banco S.A. At the same time, S&P removed ratings from the CreditWatch negative, where it placed them on Nov. 7, 2016. The outlook is negative. On Oct. 24, 2016, Parana Banco announced that its controlling shareholder block bought the bank's preferred shares from Cox Gestao de Recursos Ltda. In addition, the bank's board approved extraordinary dividends distribution of R$215.9 million. Furthermore, because of the purchase, the bank's shareholder had more than one-third of the bank's preferred stocks, above the maximum required by CVM "Comissao de Valores Mobiliarios" (Brazil's Securities and Exchange Commission). In this sense, the controlling shareholder will have to make a public offering to buy back shares and cancel Parana Banco's registration as publicly held bank. S&P reassessed its RAC ratio for the next two years to incorporate the dividends distribution in 2016 and the bank's strategy of reducing its exposure to consumer and midsize corporate loans, which improves S&P's assessment given lower credit risk in its capital model. Additionally, the negative impact of the extraordinary dividends distribution is offset by the bank's higher expected margins for 2017 and 2018 thanks to higher profitability in its payroll deductible business line because of currently falling interest rates in Brazil, given that those loans are based on fixed interest rate. As a result, the average RAC ratio for the next two years is 9.8%. In addition, S&P's capital and earnings assessment is supported by the bank's high quality of capital and earnings because its core capital, as measured by adjusted common equity, consists of 100% of total adjusted capital (TAC), while its DTAs represent around 4.3% of its TAC, compared with a peers' average of 27.4%. In addition, S&P expects Parana Banco's profitability to improve in the next two years, given that its return on average assets should surpass 3% and return on equity at around 12% in 2018. At the same time, the upcoming public offering shouldn't affect the bank's capitalization because it has been directly negotiated between the controlling shareholder and the market, and S&P doesn't expect further dividends distribution to make the transaction feasible. "We don't believe that the bank's strategy of discontinuing its consumer and midsize corporate lending has weakened our business position assessment because the payroll loans already accounted for a high share of total loans and the risk of a concentration in a single product was already incorporated in our rating analysis. Parana Banco aims to exit lending segment in which it has less expertise and that posts higher delinquency rates amid tough economy. On the other hand, the bank has large expertise and a sound market position in payroll deductible loans with a market share of around 1.2% and status as the 13th-largest lender in this segment as of September 2016. Moreover, payroll deductible banking is less cyclical, has a sticky customer base and generates a stable source of income. Additionally, the bank's business position benefits from the shareholder control of J. Malucelli Part. Seguros e Resseguros S.A., which we expect to continue providing around 35% of the bank's net income in the next two years, being an important source of diversification to Parana Banco," S&P said. RUMO SA: Fitch Assigns 'BB-' Rating to New $300MM Global Notes -------------------------------------------------------------- Fitch Ratings has assigned a 'BB-(EXP)' rating to Rumo S.A.'s proposed issuance of global notes of minimum USD300 million. The proposed senior unsecured global notes will mature in 2024. The notes will be issued through its wholly owned subsidiary, Rumo Luxembourg S.a.r.l. and will be unconditionally and irrevocably guaranteed by Rumo and its subsidiary ALL - America Latina Logistica Malha Norte S.A. Proceeds will be used to repay certain indebtedness and for general corporate purposes. The rating incorporates Rumo's leveraged capital structure, offset by the high predictability of its cash flow generation under adverse economic conditions through several cycles, and its solid business position as a railroad and logistic operator in the Brazilian infrastructure industry. Fitch sees as credit positive Rumo's affiliation with the Cosan Group (Cosan Limited; Foreign Currency Long-Term Issuer Default Rating (IDR) 'BB'/Stable Outlook), which provides reasonable financial flexibility to the company. The merger with ALL in April 2015 strengthened their consolidated business profile and generated synergy gains for both companies. The substantial capex plan for expansion and negative free cash flows (FCF) expected for the next years constrain the ratings. Another important challenge will be the company's ability to consistently capture increasing volumes as it seeks scale gains and increasing operating profitability. Rumo needs to strengthen its business position and improve operating cash flow generation in order to reduce leverage on a sustainable basis. KEY RATING DRIVERS Leverage Remains High; Decline Expected for the Medium Term The BRL2.6 billion capital injection received in April 2016 did not materially benefit Rumo's adjusted leverage, though it enabled the company to reduce its net adjusted debt to BRL11 billion as of Sept. 30 2016 (adjusted by BRL2.5 billion of leases and concession obligations) from BRL12.3 billion on Dec. 31 2015 (BRL2.2 billion of leases and concession obligations). The company's net adjusted debt/EBITDAR ratio reached 5.1x as of latest-12-month (LTM) September 2016, comparing favorably to 6.4x in 2015 on a pro forma basis, which combines both Rumo's and ALL's operations. Fitch does not expect Rumo's net adjusted leverage to improve materially by year-end but expects a soft deleveraging for Rumo over the long term as the company's balance sheets will remain pressured by the BRL8.2 billion capex expected from 2016 to 2019. Fitch expects Rumo's net adjusted leverage to range from 4.5x to 5.2x over the next three years. Operating Performance Improvement is Challenging The company still faces major challenges to capture increasing load volumes and raise its business operations profitability from 2017 onwards following the conclusion of the measures taken to improve its financial profile in 2016. After the performance volatility faced in late 2014 and early 2015, Rumo started to recover volumes from mid-2015 onwards as a consequence of operational efficiencies unleashed by its capex program. Fitch base-case projects railroad volumes reached 43 billion RTK (revenue ton kilometer) in 2016, negatively affected by agricultural performance within the country, slightly below 45 billion RTK in 2015. Expectation of Negative FCF The company's sizeable capex plan is expected to lead to negative FCF of above BRL1 billion a year until 2018. Rumo is expected to invest about BRL8.2 billion until 2019, which should result in volume increases of 7%-8% per year from 2017 onwards, according to Fitch's assumptions. The company is expected to finance investment mostly with long-term debt. Business Profile Remains Strong The ratings incorporate Rumo's solid business position as the sole railroad transportation operator in the South and Mid-Western regions of Brazil, areas with high growth potential due to stable demand for grains worldwide. While Rumo faced some performance volatility between late 2014 and early 2016, the long-term fundamentals of its business remain strong. The company's operating model has demonstrated resilience against adverse global economic conditions through several cycles, and has been able to increase cargo volumes in the last few years during diverse economic scenarios. In Fitch's view the merger with ALL's operation will strengthen the consolidated business profile as it will combine important operational logistics assets and new business opportunities with Cosan Group's rail operation. KEY ASSUMPTIONS Fitch's key assumptions within its rating case for the issuer include: -- 4% volume decline in 2016; mid-single-digit volume growth from 2017 to 2019; -- 5% tariff increase in 2016 and 2017; -- EBITDA of BRL2 billion in 2016, BRL2.4 billion in 2017 and BRL2.8 billion in 2018; -- BRL1.9 billion capex in 2016 and BRL6.3 billion capex from 2017 to 2019; -- Adjusted net debt/EBITDAR, according to Fitch' calculation, in the range of 5.3x-5.5x in 2016 and close to 5.0x in 2017. RATING SENSITIVITIES Future developments that may, individually or collectively, lead to a positive rating action include: -- Net adjusted leverage trends below 4x, while maintaining strong liquidity and positive debt-refinancing schedule; Future developments that may, individually or collectively, lead to a negative rating action include: -- Inability to finance capex with long-term and low-cost debt, putting pressure on debt amortization schedule; -- Substantial weakening of current EBITDA margins. LIQUIDITY The capital injection of BRL2.6 billion strengthened Rumo's liquidity significantly. The extension of BRL2.9 billion of debt maturing in 2016, 2017 and 2018 also contributed to protecting the company's current liquidity. As of Sept. 30, 2016, the company reported cash of BRL1.43 billion and short-term debt of BRL1.95 billion, comparing favorably with BRL0.58 billion and BRL2.12 billion, respectively, in December 2015. Fitch believes Rumo's liquidity is adequate and sustainable in the long term, considering the financial flexibility the company demonstrated in financing part of its aggressive capex plan. The company is not expected to use a significant part of its cash and operating cash flow generation to finance the ongoing investments. Rumo is counting on BRL3.5 billion of long-term debt to be provided by Banco Nacional de Desenvolvimento Economico e Social (BNDES), which is expected to be partly received during 2016. FULL LIST OF RATING Fitch currently rates Rumo as follows: -- Foreign and Local Currency IDR 'BB-'; -- National scale rating 'A(bra)'. The Rating Outlook is Stable. ========================== C A Y M A N I S L A N D S ========================== LIBERTY HOLDINGS: Shareholders' Final Meeting Set for Feb. 3 ------------------------------------------------------------ The shareholders of Liberty Holdings Limited will hold their final meeting on Feb. 3, 2017, 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: Dr. Rolf Schmid Dorothee Langemann Limmatquai 94 Zurich, Switzerland CH-8021 Telephone: 41 44 711 71 71 Facsimile: 41 44 711 71 11 LV PACIFIC: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of LV Pacific Opportunities received on Jan. 12, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Larrain Vial Investment Inc. Av. El Bosque 0117, 4th Floor Las Condes Santiago Chile Telephone: +55 9 23398500 e-mail: rurzua@larrainvial.com PANTHALASSA GP: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Panthalassa GP Limited received on Jan. 11, 2017, 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 PRASLIN LIMITED: Shareholder Receives Wind-Up Report ---------------------------------------------------- The shareholder of Praslin Limited received on Jan. 19, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Priestleys c/o Anna Cummings P.O. Box 30310 Grand Cayman KY1-1202 Cayman Islands Telephone: (345) 945 1577 Facsimile: (345) 947 0826 RIOGAMA LIMITED: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Riogama Limited received on Jan. 19, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Zedra Directors (Cayman) Limited c/o Enola Reid 136 Shedden Road One Capital Place, 3rd Floor P.O. Box 487 George Town, Grand Cayman KY1-1106 Cayman Islands Telephone: +1 (345) 914-5413 SECUREX LIMITED: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Securex Limited received on Dec. 27, 2016, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Amicorp Cayman Fiduciary Limited c/o Nicole Ebanks-Sloley The Grand Pavilion Commercial Centre, 1st Floor 802 West Bay Road P.O. Box 10655 Grand Cayman KY1-1006 Cayman Islands Telephone: (345) 943-6055 STRAVA ENHANCED: Shareholder Receives Wind-Up Report ---------------------------------------------------- The shareholder of Strava Enhanced Fund Ltd. received on Jan. 25, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Strava Capital Investments GP c/o Tim Cone Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 STRAVA OFFSHORE: Shareholder Receives Wind-Up Report ---------------------------------------------------- The shareholder of Strava Offshore Fund, Ltd. received on Jan. 25, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Strava Capital Investments GP c/o Tim Cone Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 TETON SPC: Shareholder Receives Wind-Up Report ---------------------------------------------- The shareholder of Teton SPC Limited received on Jan. 20, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands Telephone: (345)949-8244 Facsimile: (345)949-5223 THREE MOUNTAIN: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Three Mountain Global Macro Fund, Ltd. received on Jan. 12, 2017, 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 THREE MOUNTAIN MASTER: Shareholders Receive Wind-Up Report ---------------------------------------------------------- The shareholders of Three Mountain Global Macro Master Fund, Ltd. received on Jan. 12, 2017, 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 Y2L COMPANY: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of Y2L Company Limited received on Jan. 19, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Zedra Directors (Cayman) Limited c/o Enola Reid 136 Shedden Road One Capital Place, 3rd Floor P.O. Box 487 George Town, Grand Cayman KY1-1106 Cayman Islands Telephone: +1 (345) 914-5413 =========== M E X I C O =========== MEXICO: Avocado Producers Diversify Markets Due to U.S. Obstacles ----------------------------------------------------------------- EFE News reports that producers of Mexican avocados, of which 35,000 tons will be consumed in the United States during this weekend's Super Bowl Sunday, are counting on maintaining their exports of the fruit to consumers north of the border while working hard to develop other markets -- just in case trade negotiations with the new Trump government go awry. "We hope negotiations (about NAFTA, the North American Free Trade Agreement) will allow us to continue our trade in avocados as it has been up to now, because it has been a great benefit for the US consumer," the strategy consultant for Producers and Packers of Mexican Avocados for Export (APEAM), Ramon Paz, told EFE News. MEXICO: No Gasoline Price Hike Until Feb. 17 Due to Protests ------------------------------------------------------------ EFE News reports that the maximum prices of gasoline and diesel between Feb. 4 to 17 in Mexico will remain the same as in January, when a significant price hike sparked strong protests, the Secretariat of Finance and Public Credit (SHCP). The average maximum prices of Magna gasoline will therefore remain at 15.99 pesos ($0.78) per gallon, Premium gasoline at MXN17.79 pesos ($0.83) per gallon, and a gallon of diesel at MXN17.05 ($0.83), the SHCP said in a bulletin, according to EFE News. ====================== P U E R T O R I C O ====================== DACCO TRANSMISSION: Seeks to Hire Jones Day as New Legal Counsel ---------------------------------------------------------------- DACCO Transmission Parts (NY), Inc. filed an application seeking approval from the U.S. Bankruptcy Court for the Southern District of New York to hire Jones Day as its new legal counsel. The move came after Willkie Farr & Gallagher LLP, the firm initially hired by the company, withdrew as counsel due to "potential conflicts," according to the court filing. Jones Day will advise the company and its affiliates regarding their duties under the Bankruptcy Code, negotiate with creditors, and provide other legal services related to their Chapter 11 cases. The hourly rates charged by the firm are: Partners/Counsel $650 - $1,050 Associates $350 - $775 Paraprofessionals $200 - $425 The attorneys designated to represent the Debtors and their hourly rates are: Scott Greenberg $1,025 Carl Black $950 Daniel Merrett $700 Stacey Corr-Irvine $775 Danielle Barav-Johnson $450 Peter Saba $475 Scott Greenberg, Esq., disclosed in a court filing that his firm is a "disinterested person" as defined in section 101(14) of the Bankruptcy Code. In accordance with Appendix B-Guidelines for reviewing fee applications filed by attorneys in larger Chapter 11 cases, Mr. Greenberg disclosed that no variations or alternatives to Jones Day's customary billing arrangements were agreed to in connection with its employment. Mr. Greenberg also said the Debtors have approved a budget and staffing plan for the period of January 22 to February 28, 2017. Jones Day can be reached through: Scott J. Greenberg, Esq. Jones Day 250 Vesey Street New York, NY 10281 Tel: (212) 326-3939 Fax: (212) 755-7306 -- and -- Carl E. Black, Esq. 901 Lakeside Avenue Cleveland, Ohio 44114 Tel: (216) 586-7035 Fax: (216) 579-0212 About DACCO Transmission Parts (NY) Headquartered in Cleveland, Ohio, Transtar Holding Company manufactures and distributes aftermarket driveline Replacement parts and components to the transmission repair and remanufacturing market. It also supplies autobody refinishing products and manufactures air conditioning, cooling and power steering assemblies and components. Founded in 1975, Transtar maintains over 70 local branch locations, four manufacturing and production facilities (in Alma, Michigan; Brighton, Michigan; Cookeville, Tennessee; and Ferris, Texas), and four regional distribution centers throughout the United States, Canada and Puerto Rico. On Dec. 21, 2010, the Company was acquired from Linsalata Capital Partners by current majority equity holder Friedman Fleischer & Lowe LLC. The acquisition was financed with $425 million of senior secured credit facilities. As of the Petition Date, the Company employs approximately 2,000 full-time and 50 part-time employees in the United States, and approximately 100 full-time employees in Canada and Puerto Rico. DACCO Transmission Parts (NY), Inc. and 46 affiliated debtors, including Transtar Holding Company, filed chapter 11 petitions (Bankr. S.D.N.Y. Case Nos. 16-13245 to 16-13291) on Nov. 20, 2016. The petitions were signed by Joseph Santangelo, authorized signatory. The cases are pending before Judge Mary Kay Vyskocil, and the Debtors have requested that their cases be jointly administered under Case No.16-13245. The Debtors estimated assets and liabilities at $500 million to $1 billion at the time of the filing. The Debtors tapped Rachel C. Strickland, Esq., Christopher S. Koenig, Esq., Debra C. McElligott, Esq., and Jennifer J. Hardy, Esq., at Willkie Farr & Gallagher LLP as attorneys. Citing potential conflicts, DACCO Transmission has hired Jones Day as its new legal counsel to replace Willkie Farr. The Debtors also have hired FTI Consulting, Inc. as restructuring and financial advisors, Ducera Partners LLC as financial advisors and investment banker and Prime Clerk LLC as claims, noticing and solicitation agent. PUERTO RICO: Passes Bill Freezing Debt Payments Until May 1 ----------------------------------------------------------- The Associated Press reports that Puerto Rico Gov. Ricardo Rossello has signed a bill that freezes debt payments until May 1, 2017, with a three-month extension option. According to published reports, the bill will allow the commonwealth to pay for essential services as well as a portion of its $70 billion in bond debt. Martin O'Sullivan, writing for Bankruptcy Law360, relates that the bill requires that the governor receive legislative approval to take out loans or issue bonds. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD CEMENT: S&P Raises CCR to 'B', Off CreditWatch Positive ---------------------------------------------------------------- S&P Global Ratings said that it raised its long-term corporate credit rating on Trinidad Cement Limited Group (TCL) to 'B' from 'B-'. S&P also raised its issue-level rating on the company's senior secured term loan to 'B' from 'B-'. At the same time, S&P removed the ratings from CreditWatch positive, where it had placed them on Dec. 6, 2016, following the announcement that CEMEX S.A.B. de C.V. (global scale: BB-/Stable /--; national scale: mxA-/Stable/mxA-2) presented a takeover bid of TCL. The outlook is stable. The upgrade reflects CEMEX's recent takeover of TCL through one of its indirect subsidiaries, Sierra Trading, and S&P's expectations of the group support to TCL due to its strategically important status to the group in the Caribbean cement market. In the past, CEMEX had already signaled strong commitment to TCL given that Sierra's stake in TCL increased to 39.5% from 20% in 2015 following the latter's debt restructuring. At that time, TCL and CEMEX entered into a technical and managerial services agreement, which continues to include support in manufacturing, procurement, planning, finance, shipping and trading activities. As part of the agreement, TCL also appointed eight CEMEX executives to its top management team. With the recent takeover, CEMEX now controls 67.39% of the voting shares, which could be further increase up to 74.9% until Feb. 7, 2017, and is integrating TCL. These actions confirm S&P's view that TCL is strategically important to CEMEX. S&P believes that TCL is unlikely to be sold and that it's very likely to receive support from the rest of the group, particularly because of the implicit guarantee that CEMEX provides to its consolidated subsidiaries' debt obligations. However, S&P believes that several factors limit the level of support that CEMEX might provide to TCL. They include TCL's fairly small size (only 2.2% of CEMEX's total sales, 3.2% of EBITDA, 1.3% of assets, and 1% of total debt in 2015) and its separate identity and brand name from the group. Therefore, S&P don't give additional notches of support to TCL. In addition, TCL has a considerable exposure to Jamaica (B/Stable/B) because the company generates about 35% of its sales there. As a result, Jamaica's sovereign foreign currency rating currently prevents additional notch of support from CEMEX, given TCL's current stand- alone credit profile and its strategically important status vis-a- vis the group. S&P believes TCL's business risk profile continues to reflect the small scale of both the company and its end markets compared with those of its rated peers. It also takes into account the company's aging operating plants, which require significant maintenance capital expenditures (capex), and its large export base revenue, which is unusual in the industry because of pressure stemming from high transportation costs. Finally, S&P sees some weakness due to TCL's asset and production capacity concentration and its limited product diversity. However, the company's strong brand recognition and its presence in markets with a limited cement supply provide TCL with a certain level of pricing power. S&P also incorporates TCL's regional scope and end-market diversification as favorable in comparison to its Latin American peers. Other rating strengths include its leading position in the Caribbean market and strategic partnership with CEMEX through a technical and managerial services agreement. S&P's assessment of TCL's financial risk profile continues to reflect S&P's expectation that the company will further improve its credit metrics given the gradual deleveraging of its capital structure in the next two years resulting from its scheduled debt amortization feature. This is despite S&P's expectation of relatively low top-line growth--including sales and EBITDA--due to the weak cement demand and increasing competition in most of the markets where the company operates. Moreover, S&P believes that TCL will continue to focus on cash flow generation thanks to its increasing operating efficiencies and tight working-capital management. Nevertheless, S&P also expects relatively high capex, of about TT$204 million in 2017, as the company continues to upgrade its assets production and gradually increases its dividend distribution starting in 2017. Finally, based on S&P's above expectations, it expects TCL to post debt to EBITDA below 2.0x and FOCF to debt close to 30% in 2017. S&P's assessment also continues to factor in its view of the very high volatility of the company's cash flow and leverage ratios during periods of stress, which continue to limit S&P's financial risk profile assessment. Moreover, S&P's ratings continue to be constrained by the company's recent financial restructuring and the need for a longer track record of top management stability in TCL, given the changes partly stemming from the technical and service agreement with CEMEX. TCL's main subsidiaries guarantee the $200 million term loan, which benefits from a collateral package that includes all large properties and assets of TCL and its guarantors. S&P's base-case scenario assumes: -- Trinidad & Tobago's GDP growth of 1.2% in 2017 and 2.0% in 2018 amid a gradual recovery in energy prices and an increase in volume of natural gas output due to new energy projects, including the expansion of hydrocarbon production. -- Jamaica's GDP growth of 1.5% in 2017 and 1.7% in 2018 in part because of an acceleration in growth of the U.S. economy, which in turn should support remittances to Jamaica and boost its consumption. -- Barbados and other Caribbean countries' GDP growth between 1.0% and 3.0% in the next two years. -- Revenue growth of about 0.5% in the next two years. TCL's gross margins to reach 74.7% and selling and general administrative expenses to represent about 50% of total sales in 2017 and 2018. -- Positive working capital inflow due to the company's strategy to gradually reduce its inventories level and improve its terms and conditions with suppliers. -- Capex of about TT$204 million in 2017 related to the maintenance of the three production plants, and TT$136 million in 2018 for general maintenance activities. -- Dividend payments of about TT$47 million in 2017 and TT$49 million in 2018. -- Annual debt amortization according to the terms and conditions of the credit agreement. Based on these assumptions, S&P arrives at these credit measures for 2017 and 2018, respectively: -- EBITDA margin of about 24.7% in both years; -- Debt to EBITDA of 1.6x and 1.5x; and -- FOCF to total debt at 30% and 42%. S&P assesses TCL's liquidity as adequate under its criteria. S&P expects sources to exceed uses by more than 1.2x in the next 12 months, and that this ratio will remain above 1.0x even if EBITDA declines by 15% from our base case. The company benefits from a smooth debt amortization repayment profile over the next few years, which provides it with financial flexibility. S&P's assessment also considers that TCL has limited flexibility to cut and/or defer its budgeted capex as it's upgrading its production plants. In addition, S&P believes that TCL benefits from CEMEX's financial advice, as seen in TCL's recent senior secured term loan borrowing. Principal Liquidity Sources: -- Cash and liquid investment of TT$313.9 million as of the end of September 2016; and -- FFO of about TT$441.1 million for the next 12 months. Principal Liquidity Uses: -- Short-term debt of TT$263.3 million (including a $10 million debt prepayment during the the fourth quarter of 2016); -- Intra-year working capital requirements of TT$50.9 million; -- Capex of TT$204 million in the next 12 months; and -- Dividend payments of TT$39.3 million in the next 12 months. S&P believes that TCL will continue to comply with its financial maintenance covenants in the next 12 months. If the forecasted EBITDA were to decline by 15%, the company won't breach its covenants tests, including its consolidated interest coverage ratio above 4.0x, total debt leverage ratio below 3.5x, and consolidated senior debt leverage ratio below 2.75x by the end of 2017. The stable outlook reflects S&P's view that TCL will post low revenue and EBITDA growth in 2017 due to the weak cement demand in most of its markets. S&P nonethless expects TCL to generate solid FOCF through the year and to commit to its gradual debt reduction in line with its amortization, which S&P believes should translate to debt to EBITDA below 2.0x and FOCF to debt close to 30% in 2017. S&P could raise the ratings in the next 12 months if it was to revise upward its assessment of TCL's SACP by two notches. This could occur if TCL shows a track record of solid operating performance with EBITDA margin stabilizing close to 25% and posting debt to EBITDA below 2.0x and FOCF to debt above 25% in a consistent manner, while showing a longer track record of top management stability. An upgrade would also depend on TCL's ability to withstand a stress scenario of a sovereign default in Jamaica because the company's credit rating is currently capped at 'B' due to its significant exposure to Jamaica's sovereign foreign currency rating. S&P could also upgrade TCL if S&P revises upward its assessment of its subsidiary status to "highly strategic" or higher from "strategically important." Such a revision would mean that S&P would include one additional notch in the long-term rating on TCL to reflect additional support from CEMEX. S&P views a downgrade in the next 12 months as very unlikely and would depend on one or more of the following factors: TCL's capital structure becoming unsustainable, CEMEX's credit quality deteriorating, S&P's view of CEMEX's likelihood of support to TCL changing drastically, and/or Jamaica's downgrade and TCL failing to pass a stress test scenario on Jamaica. TRINIDAD & TOBAGO: Public Asked to Comment on FATCA ---------------------------------------------------- Trinidad and Tobago Newsday reports that the public is invited to comment on the Foreign Account Tax Compliance Act (FATCA) Bill, currently before the Joint Select Committee on the Tax Information Exchange Agreement Bill 2016, introduced to the House of Representatives on September 9. The Bill activates treaties between TT and other States to exchange information for the purposes of taxation and validates the sharing of personal information held by the Board of Inland Revenue or financial institutions, according to Trinidad and Tobago Newsday. The Committee is inviting all stakeholders and interested persons to submit written comments/suggestions/recommendations related to the consideration of the Bill, the report notes. The deadline for submissions is February 10. According to the report, written submissions can be sent by email to, or forwarded to: The Secretary Joint Select Committee on Tax Information Exchange Agreements Bill 2016 Office of the Parliament of Trinidad and Tobago Levels G-9, Tower D, International Waterfront Centre 1A Wrightson Road Portof- Spain ================= X X X X X X X X X ================= LATAM: Crime Costing Region US$261 Billion Yearly, IDB Says ----------------------------------------------------------- RJR News reports that a study by the Inter-American Development Bank (IDB) estimates the direct annual cost of crime and violence in Latin America and the Caribbean at US$261 billion or almost four per cent of GDP. This is roughly what the region invests on infrastructure and double the average cost for developed countries, according to RJR News. It is also the equivalent income for 30 per cent of the poorest population, underscoring the grave development impact violence has on the region, the report notes. * BOND PRICING: For the Week From Jan. 30 to Feb. 3, 2017 --------------------------------------------------------- Issuer Name Cpn Price Maturity Country Curr ----------- --- ----- -------- ------- ---- Anton Oilfield Services G 7.5 69.03 11/6/2018 CN USD BA-CA Finance Cayman 2 Lt 0.719 38.5 KY EUR BA-CA Finance Cayman Ltd 0.749 38.93 KY EUR Banco do Brasil SA/Cayman 6.25 62.84 KY USD Banco do Brasil SA/Cayman 6.25 59.51 KY USD BPI Capital Finance Ltd 2.29 40 KY EUR CA La Electricidad de Car 8.5 43.75 4/10/2018 VE USD Chile Government Internat 3.625 15.7 10/30/2042 CL USD CSN Islands XI Corp 6.875 61.25 9/21/2019 KY USD CSN Islands XI Corp 6.875 61.13 9/21/2019 KY USD CSN Islands XII Corp 7 48.8 BR USD CSN Islands XII Corp 7 47.75 BR USD Decimo Primer Fideicomiso 4.54 59.75 10/25/2041 PA USD Decimo Primer Fideicomiso 6 71.38 10/25/2041 PA USD Ecuador Government Domest 8.45 70.8 2/6/2034 EC USD Ecuador Government Domest 8.45 69.35 9/10/2034 EC USD Ecuador Government Domest 8.45 70.42 4/2/2034 EC USD Ecuador Government Domest 8.45 69.72 7/17/2034 EC USD Ecuador Government Domest 8.45 69.71 5/30/2034 EC USD Ecuador Government Domest 8.45 69.23 9/30/2034 EC USD Ecuador Government Domest 8.45 70.52 3/19/2034 EC USD Ecuador Government Domest 7.75 74.84 12/19/2028 EC USD Ecuador Government Domest 8.45 69.94 6/12/2034 EC USD Ecuador Government Domest 8.45 69.95 6/11/2034 EC USD Ecuador Government Domest 8.45 69.82 7/1/2034 EC USD Ecuador Government Domest 7.7 73.56 7/1/2029 EC USD Ecuador Government Domest 7.7 72.94 9/10/2029 EC USD Ecuador Government Domest 7.75 74.95 11/8/2028 EC USD Ecuador Government Domest 7.7 73.74 6/11/2029 EC USD Ecuador Government Domest 7.7 73.73 6/12/2029 EC USD Ecuador Government Domest 7.7 72.77 9/30/2029 EC USD Empresa de Telecomunicaci 7 71.24 1/17/2023 CO COP Empresa de Telecomunicaci 7 71.24 1/17/2023 CO COP ESFG International Ltd 5.753 0.883 KY EUR General Exploration Partn 11.5 36.75 11/13/2018 CA USD General Shopping Finance 10 60.55 KY USD General Shopping Finance 10 60.63 KY USD Global A&T Electronics Lt 10 70.88 2/1/2019 SG USD Global A&T Electronics Lt 10 71.88 2/1/2019 SG USD Global A&T Electronics Lt 10 50.5 2/1/2019 SG USD Global A&T Electronics Lt 10 54 2/1/2019 SG USD Glorious Property Holding 13.25 74.56 3/4/2018 HK USD Gol Finance Inc 9.25 47.35 7/20/2020 BR USD Gol Finance Inc 8.75 37.75 BR USD Gol Finance Inc 7.5 61 4/3/2017 BR USD Gol Finance Inc 7.5 59.38 4/3/2017 BR USD Gol Finance Inc 7.5 59.38 4/3/2017 BR USD Gol Finance Inc 9.25 43.38 7/20/2020 BR USD Gol Finance Inc 8.75 36.88 BR USD Green Dragon Gas Ltd 10 63.75 11/20/2017 HK USD Greenfields Petroleum Cor 9 11.35 5/31/2017 US CAD Honghua Group Ltd 7.45 58.25 9/25/2019 CN USD Honghua Group Ltd 7.45 58 9/25/2019 CN USD Inversora Electrica de Bu 6.5 59.5 9/26/2017 AR USD MIE Holdings Corp 7.5 67.25 4/25/2019 HK USD MIE Holdings Corp 7.5 68.58 4/25/2019 HK USD NB Finance Ltd/Cayman Isl 3.38 60.22 2/7/2035 KY EUR Newland International Pro 9.5 24.13 7/3/2017 PA USD Newland International Pro 9.5 25.13 7/3/2017 PA USD Noble Holding Internation 6.2 65.42 8/1/2040 KY USD Noble Holding Internation 6.05 66.38 3/1/2041 KY USD Noble Holding Internation 5.25 64.71 3/15/2042 KY USD Ocean Rig UDW Inc 7.25 57.75 4/1/2019 CY USD Ocean Rig UDW Inc 7.25 55 4/1/2019 CY USD Odebrecht Drilling Norbe 6.35 27 6/30/2021 KY USD Odebrecht Drilling Norbe 6.35 28.5 6/30/2021 KY USD Odebrecht Finance Ltd 7.5 40 KY USD Odebrecht Finance Ltd 4.375 37.23 4/25/2025 KY USD Odebrecht Finance Ltd 7.125 33.5 6/26/2042 KY USD Odebrecht Finance Ltd 5.25 34.5 6/27/2029 KY USD Odebrecht Finance Ltd 5.125 36 6/26/2022 KY USD Odebrecht Finance Ltd 8.25 35 4/25/2018 KY BRL Odebrecht Finance Ltd 7 53.5 4/21/2020 KY USD Odebrecht Finance Ltd 6 41.51 4/5/2023 KY USD Odebrecht Finance Ltd 5.25 36 6/27/2029 KY USD Odebrecht Finance Ltd 4.375 36 4/25/2025 KY USD Odebrecht Finance Ltd 7.125 33.75 6/26/2042 KY USD Odebrecht Finance Ltd 7.5 42.5 KY USD Odebrecht Finance Ltd 8.25 35 4/25/2018 KY BRL Odebrecht Finance Ltd 5.125 35.38 6/26/2022 KY USD Odebrecht Finance Ltd 6 38.88 4/5/2023 KY USD Odebrecht Finance Ltd 7 44 4/21/2020 KY USD Odebrecht Offshore Drilli 6.75 17 10/1/2022 KY USD Odebrecht Offshore Drilli 6.625 17 10/1/2022 KY USD Odebrecht Offshore Drilli 6.75 17.38 10/1/2022 KY USD Odebrecht Offshore Drilli 6.625 17.38 10/1/2022 KY USD Petroleos de Venezuela SA 5.25 67.5 4/12/2017 VE USD Petroleos de Venezuela SA 12.75 56.1 2/17/2022 VE USD Petroleos de Venezuela SA 9 49.38 11/17/2021 VE USD Petroleos de Venezuela SA 9.75 44.57 5/17/2035 VE USD Petroleos de Venezuela SA 6 38.5 5/16/2024 VE USD Petroleos de Venezuela SA 6 36.75 11/15/2026 VE USD Petroleos de Venezuela SA 5.375 37 4/12/2027 VE USD Petroleos de Venezuela SA 5.5 36.75 4/12/2037 VE USD Petroleos de Venezuela SA 6 32.13 10/28/2022 VE USD Petroleos de Venezuela SA 6 36.4 11/15/2026 VE USD Petroleos de Venezuela SA 6 35.35 5/16/2024 VE USD Petroleos de Venezuela SA 9.75 41.7 5/17/2035 VE USD Petroleos de Venezuela SA 9 45.25 11/17/2021 VE USD Petroleos de Venezuela SA 12.75 46.15 2/17/2022 VE USD Polarcus Ltd 5.6 44.93 3/30/2022 AE USD Provincia de Rio Negro 1.6148 62 5/4/2024 AR ARS PSOS Finance Ltd 11.75 60.13 4/23/2018 KY USD Republic of Ecuador Minis 8.45 69.22 9/30/2034 EC USD Republic of Ecuador Minis 7.75 74.88 12/19/2028 EC USD Republic of Ecuador Minis 7.7 73.6 7/1/2029 EC USD Republic of Ecuador Minis 7.75 74.99 11/8/2028 EC USD Republic of Ecuador Minis 8.45 69.22 9/30/2034 EC USD Republic of Ecuador Minis 7.7 73.77 6/12/2029 EC USD Republic of Ecuador Minis 8.45 69.39 9/10/2034 EC USD Republic of Ecuador Minis 8.45 69.75 7/17/2034 EC USD Republic of Ecuador Minis 8.45 69.39 9/10/2034 EC USD Republic of Ecuador Minis 7.7 72.81 9/30/2029 EC USD Republic of Ecuador Minis 7.7 73.78 6/11/2029 EC USD Republic of Ecuador Minis 7.7 73.6 7/1/2029 EC USD Republic of Ecuador Minis 8.45 69.98 6/11/2034 EC USD Republic of Ecuador Minis 8.45 69.98 6/11/2034 EC USD Republic of Ecuador Minis 7.7 73.77 6/12/2029 EC USD Republic of Ecuador Minis 7.7 72.99 9/10/2029 EC USD Republic of Ecuador Minis 8.45 69.97 6/12/2034 EC USD Republic of Ecuador Minis 7.75 74.88 12/19/2028 EC USD Republic of Ecuador Minis 8.45 70.84 2/6/2034 EC USD Republic of Ecuador Minis 8.45 70.55 3/19/2034 EC USD Republic of Ecuador Minis 8.45 69.85 7/1/2034 EC USD Republic of Ecuador Minis 8.45 70.45 4/2/2034 EC USD Republic of Ecuador Minis 7.7 72.81 9/30/2029 EC USD Republic of Ecuador Minis 8.45 69.75 7/17/2034 EC USD Republic of Ecuador Minis 8.45 69.74 5/30/2034 EC USD Republic of Ecuador Minis 8.45 69.97 6/12/2034 EC USD Republic of Ecuador Minis 7.75 74.99 11/8/2028 EC USD Republic of Ecuador Minis 8.45 69.85 7/1/2034 EC USD Republic of Ecuador Minis 8.45 70.45 4/2/2034 EC USD Republic of Ecuador Minis 8.45 69.74 5/30/2034 EC USD Republic of Ecuador Minis 7.7 73.78 6/11/2029 EC USD Republic of Ecuador Minis 8.45 70.84 2/6/2034 EC USD Republic of Ecuador Minis 7.7 72.99 9/10/2029 EC USD Republic of Ecuador Minis 8.45 70.55 3/19/2034 EC USD Samarco Mineracao SA 4.125 37.25 11/1/2022 BR USD Samarco Mineracao SA 5.75 36.6 10/24/2023 BR USD Samarco Mineracao SA 5.375 35.38 9/26/2024 BR USD Samarco Mineracao SA 4.125 37.38 11/1/2022 BR USD Samarco Mineracao SA 5.75 39.63 10/24/2023 BR USD Samarco Mineracao SA 5.375 37.25 9/26/2024 BR USD Siem Offshore Inc 5.69 52.25 1/30/2018 NO NOK Siem Offshore Inc 5.49 51.75 3/28/2019 NO NOK Transocean Inc 5.05 74.75 10/15/2022 KY USD Transocean Inc 6.8 63.66 3/15/2038 KY USD Transocean Inc 7.5 65.78 4/15/2031 KY USD Transocean Inc 9.1 70.41 12/15/2041 KY USD Transocean Inc 7.45 74.9 4/15/2027 KY USD Transocean Inc 8 73.55 4/15/2027 KY USD Uruguay Notas del Tesoro 5.25 61.99 12/29/2021 UY UYU US Capital Funding IV Ltd 0.99305 43.92 12/1/2039 KY USD US Capital Funding IV Ltd 0.99305 43.92 12/1/2039 KY USD Venezuela Government Inte 9.25 49.03 9/15/2027 VE USD Venezuela Government Inte 11.75 49.5 10/21/2026 VE USD Venezuela Government Inte 11.95 49.5 8/5/2031 VE USD Venezuela Government Inte 7.75 47.38 10/13/2019 VE USD Venezuela Government Inte 13.625 65.25 8/15/2018 VE USD Venezuela Government Inte 9.375 45.85 1/13/2034 VE USD Venezuela Government Inte 7 52.85 12/1/2018 VE USD Venezuela Government Inte 7 42 3/31/2038 VE USD Venezuela Government Inte 9 45.5 5/7/2023 VE USD Venezuela Government Inte 9.25 45.5 5/7/2028 VE USD Venezuela Government Inte 8.25 44.38 10/13/2024 VE USD Venezuela Government Inte 6 43.5 12/9/2020 VE USD Venezuela Government Inte 13.625 56.5 8/15/2018 VE USD Venezuela Government Inte 7.65 43.25 4/21/2025 VE USD Venezuela Government Inte 13.625 59.69 8/15/2018 VE USD Venezuela Government Inte 12.75 53.5 8/23/2022 VE USD Venezuela Government TICC 5.25 53.23 3/21/2019 VE USD VRG Linhas Aereas SA 10.75 25.63 2/12/2023 BR USD VRG Linhas Aereas SA 10.75 25.63 2/12/2023 BR USD XLIT Ltd 6.5 70 IE USD *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those 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 * * *