/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170323.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 Thursday, March 23, 2017, Vol. 18, No. 59 Headlines A R G E N T I N A CITY OF BUENOS AIRES: Moody's Rates USD530MM Notes at B3 B A R B A D O S BARBADOS: "We Don't Need the IMF -- Yet," Prime Minister Declares B R A Z I L BRAZIL: on Tenterhooks Over List of Politicians Subject to Probe C A Y M A N I S L A N D S AIC MARINE: Placed Under Voluntary Wind-Up CAYMAN MS: Shareholders Receive Wind-Up Report COMPASS INVESTMENTS: Placed Under Voluntary Wind-Up GAVEA GLOBAL: Commences Liquidation Proceedings GAVEA GLOBAL SPV: Commences Liquidation Proceedings GNETOP INC: Creditors' Proofs of Debt Due March 27 HAWAII ASIA: Commences Liquidation Proceedings NMS SERVICES: Commences Liquidation Proceedings NORTH AMERICAN: Sole Member Receives Wind-Up Report PETROASIA LIMITED: Shareholders Receive Wind-Up Report RESIDENTIAL REINSURANCE: Creditors' Proofs of Debt Due April 10 SUNRISE CAPITAL: Shareholders Receive Wind-Up Report UNIVERSITY OF TOLEDO: Shareholders Receive Wind-Up Report WALDEN LIMITED: Shareholders Receive Wind-Up Report WESTERN HEMISPHERE: Sole Member Receives Wind-Up Report C H I L E SMU SA: S&P Raises CCR to 'B-' on Improved Capital Structure C O L O M B I A ELECTRIFICADORA DEL CARIBE: Colombia to Liquidate Company M E X I C O MINERA FRISCO: Moody's Ups Sr. Unsec. Nat'l Scale Rating to B3.mx UNIFIN FINANCIERA: S&P Affirms 'BB' Issuer Credit Rating P A R A G U A Y PARAGUAY: Moody's Assigns (P)Ba1 Global Bond Rating P E R U COMPANIA MINERA: S&P Affirms 'BB' CCR; Outlook Remains Stable X X X X X X X X X LATAM: Latino Firms Seek Prosperity Building Trump's Wall - - - - - ================= A R G E N T I N A ================= CITY OF BUENOS AIRES: Moody's Rates USD530MM Notes at B3 -------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo has assigned B3 Global Scale local currency debt rating and Baa1.ar rating on Argentina National Scale in local currency to proposed Classes 21 and 22 Notes for up to the combined equivalent amount in local currency of up to USD530 million, to be issued by the City of Buenos Aires under its Local Financing Program. The ratings are in line with the City's long term local currency ratings, which carry positive outlook. RATINGS RATIONALE The creation of the Local Financing Program was authorized by Laws 4315, 4382, 4431 and 4472 of 2012, Laws 4810 and 4885 of 2013, Law 4949 of 2014 and Laws 5491, 5496, 5541, 5725 and 5727 of 2016. These two new Classes to be issued under the program, will constitute direct, unconditional, unsecured and unsubordinated obligation of the City, ranking at all times pari passu without any preference among other debts. Both Classes will bear variable interest rate (local benchmark plus margin) on a quarterly basis and will be issued and payable in Argentine Pesos for the combined equivalent amount of up to USD530 million. They will be sold in the local capital market. Class 21 Notes will mature in 18 months whereas Class 22 will mature in 84 months with bullet amortization in both cases. After the issuance of these 2 Notes classes, coupled with the repayment of some debts maturing during this year and the expected increase in the City's total revenues, Moody's does not anticipate a rise in the City of Buenos Aires' ratio of total debt relative to total revenues. The assigned ratings are in line with the City's B3 (Global Scale) and Baa1.ar (Argentina's National Scale) local currency debt ratings. The assigned ratings are based on preliminary documentation received by Moody's as of the rating assignment date. Moody's does not expect changes to the documentation reviewed over this period or anticipates changes in the main conditions that the notes will carry. Should issuance conditions and/or final documentation of any of the series under this program deviate from the original ones submitted and reviewed by the rating agency, Moody's will assess the impact that these differences may have on the ratings and act accordingly. WHAT COULD CHANGE THE RATING UP/DOWN Given the strong macroeconomic and financial linkages between the Government of Argentina's and Sub-sovereigns' economic and financial profiles and ratings, and upgrade of Argentina's sovereign bonds ratings and/or the improvement of the country's operating environment could lead to an upgrade of the City of Buenos Aires ratings. Conversely, a downgrade in Argentina's bond ratings and/or systemic deterioration or idiosyncratic risks arising in the City of Buenos Aires --such as an increase in the share of its foreign currency denominated debt -- could exert downward pressure on the ratings assigned to the City of Buenos Aires and could translate in to a downgrade in the near to medium term. The principal methodology used in these ratings was Regional and Local Governments published in January 2013. Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". While NSRs have no inherent absolute meaning in terms of default risk or expected loss, a historical probability of default consistent with a given NSR can be inferred from the GSR to which it maps back at that particular point in time. For information on the historical default rates associated with different global scale rating categories over different investment horizons. =============== B A R B A D O S =============== BARBADOS: "We Don't Need the IMF -- Yet," Prime Minister Declares ----------------------------------------------------------------- Caribbean360.com reports that the International Monetary Fund is not on the agenda of the Barbados Government, an adamant Prime Minister Freundel Stuart has declared. On the heels of warnings from his predecessor Owen Arthur that the stressed economy urgently needs a helping hand from the Washington-based financial institution to stave off a $3.3 billion debt crisis, Stuart dispelled the notion that the island was so poorly off that it had no other option, according to Caribbean360.com. Mr. Arthur made it clear that if and when the island had to go that route, he would not cower, the report notes. "I have heard all of the talk in Barbados; I heard the member for St Peter say that we should go into an IMF program and so on. I want to make it very clear, I spoke to the Chamber of Commerce in January, and I said there will be no panicky resort to the IMF by the present Government of Barbados," Mr. Stuart said in his contribution to the debate on the Estimates and Expenditures for 2017/2018, the report notes. "If the stage is ever reached where it has to happen, as with the case of [then Prime Minister] Tom Adams, as with the case of [then Prime Minister Erskine] Sandiford, this Prime Minister will have the courage to look the country in the face and say, 'look, here is what the facts are, here is what I think we have to do for the good of this country'. But that is not an agenda item of this government at this stage," he added, the report relays. The report notes that Mr. Arthur had argued that the island could not afford to turn its back on the opportunity to have its debt restructured under a Fund program, pointing out that it could get as much as $750 million at one per cent interest. The noted economist also proposed that the island end its currency peg to the United States dollar, since it was doing more harm than good, the report relays. "Our currency is pegged to the United States dollar that is not going down in value but is going up in value, and it is making Barbadian exports more expensive -- not because we want them to be more expensive but because of how our currency is pegged. Our currency is also making it more expensive for investors coming from the United Kingdom and Germany to be able to make investments in Barbados," Mr. Arthur warned, the report relays. But again rejecting the advice of the former leader, Mr. Stuart insisted the $2 to $1 peg had served the country well since 1975, the report recalls. "It has made our business transactions certain; our business people have been able to rely on it, our citizens have been able to rely on it. It is true that the US dollar has been strengthening against other currencies in recent times, but that has happened before and that can change as well," he added, notes the report. Prime Minister Stuart also went on to defend his Government's printing of money, saying while it would not continue forever, there was too much at stake to abruptly stop, the report notes. "These things are not new. They are not desirable in the context of our overall macroeconomic aspirations, but sometimes they become necessary. And you only have to ask yourselves, 'if they are not done, what the consequences will be for the society?'" he added, reports Caribbean360.com. =========== B R A Z I L =========== BRAZIL: on Tenterhooks Over List of Politicians Subject to Probe ---------------------------------------------------------------- Paul Kiernan and Paulo Trevisani at The Wall Street Journal report that Brazil's political crisis lurched into higher gear as an unknown number of top politicians faced the prospect of being snared in a corruption dragnet while labor groups staged nationwide protests against President Michel Temer's economic policies. Politicians here in the capital were holding their breath as the Supreme Court weighed whether to make public a highly anticipated list of politicians Attorney General Rodrigo Janot requested its permission to investigate in the so-called Car Wash probe, according to The Wall Street Journal. Several newspapers, citing leaked portions of the list, reported that as many as five of Mr. Temer's 28 cabinet members were among those named, along with the leaders of both chambers of Congress and a number of high-profile senators and state governors, the report notes. The Wall Street Journal couldn't independently confirm those assertions, the report relays. Political analysts say Mr. Janot's list could push vulnerable politicians away from supporting Mr. Temer's unpopular proposals to overhaul the country's pension system and labor laws, changes economists say are crucial to narrowing the government's budget deficit and paving the way for a recovery from Brazil's worst recession on record, the report discloses. The attorney general's list of names is based on testimony from witnesses at construction giant Odebrecht SA and petrochemicals firm Braskem SA, which both agreed in late 2016 to cooperate with authorities investigating corruption at state-controlled oil company Petr¢leo Brasileiro SA, the report relays. "Brasilia's establishment is wobbling," said Jimena Blanco, head of Latin America at Verisk Maplecroft, a risk-management consulting firm. The reported inclusion of Rodrigo Maia and Eunicio Oliveira, heads of Brazil's lower house of Congress and Senate respectively, "could bring legislative reform initiatives to a standstill," she added, the report notes. "This investigation will give me the opportunity to show there is nothing against me," Mr. Maia said to reporters. "This case will be shelved," he added, reports WSJ. A spokesman for Mr. Oliveira referred to a note released by the Senate's presidency that said investigations aren't a final verdict, the report notes. "The right to ample defense must be respected," it said. The report relays that Mr. Temer's approval rating is hovering around 10%, reflecting Brazilians' wariness toward his agenda following two years of recession and corruption scandals. In major cities around the nation, schools, banks and transportation systems were partly shut down by strikes, and thousands of people took to the streets to protest the proposed pension and labor overhauls, the report notes. "It's an embarrassment for a country with so much potential to be in this situation," said Rafael Boucas, a 31-year-old sales associate in an eyeglasses store in Rio, the report relays. "Looking at this stuff happening, what we see is that things can only get worse, unless a miracle happens," he added. The report discloses that Mr. Janot's request also deepened the uncertainty surrounding Brazil's 2018 presidential election, as it could further taint mainstream political parties and dissuade a number of likely candidates from running. Leading financial daily Valor Economico reported that two leading figures of the center- right PSDB party, one of Brazil's largest, were on the list: Sen. Aecio Neves, who narrowly lost the last presidential election, and Sao Paulo Gov. Geraldo Alckmin, the report says. The PSDB party said that as the party's president, Mr. Neves had acted "always within the law, which will be proved at the end of the investigations," the report relays. The report further notes that Mr. Alckmin's office said in an emailed statement that prosecutors didn't release enough details for him to comment on. Leonardo Barreto, a political consultant in Bras°lia, expects the list to broaden the probe, leaving hardly any potential candidate unharmed and compelling all parties to recalculate their 2018 plans, the report discloses. "If you walk by a party's headquarters, they may grab you to be a candidate," Mr. Barreto said, the report adds. As reported in the Troubled Company Reporter-Latin America on Nov. 15, 2016, Fitch Ratings has affirmed Brazil's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB'/ Negative Outlook. Brazil's senior unsecured Foreign- and Local- Currency bonds are also affirmed at 'BB'. The Country Ceiling is affirmed at 'BB+' and the Short-Term Foreign and Local-Currency IDRs at 'B'. ========================== C A Y M A N I S L A N D S ========================== AIC MARINE: Placed Under Voluntary Wind-Up ------------------------------------------ The sole shareholder of AIC Marine Corp. on, Jan. 27, 2017, passed a resolution to wind up the company's operations. Only creditors who were able to file proofs of debt by March 6, 2017, will be included in the company's dividend distribution. The company's liquidator is: William J. Lynch c/o Lynch & Associates 535 Boylston St. Suite T2 Boston, MA 02116 United States of America Telephone: +1 (617) 247 7000 Facsimile: +1 (617) 247 7275 CAYMAN MS: Shareholders Receive Wind-Up Report ---------------------------------------------- The shareholders of Cayman MS Investors received on March 6, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stephen Nelson Collas Crill Willow House, 2nd Floor, Cricket Square P.O. Box 709 Grand Cayman, KY1-1107 Cayman Islands Telephone: 949-4544 Facsimile: 949-7073 COMPASS INVESTMENTS: Placed Under Voluntary Wind-Up --------------------------------------------------- The shareholders of Compass Investments Ltd. on, Feb. 2, 2017, passed a resolution to wind up the company's operations. Creditors are required to file proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Alexandria Bancorp Limited c/o Dayra Triana-Munroe Barbara Conolly -Authorised Signatory The Grand Pavilion Commercial Centre 802 West Bay Road P.O. Box 2428 Grand Cayman KY1-1105 Cayman Islands Telephone: (345) 945-1111 GAVEA GLOBAL: Commences Liquidation Proceedings ----------------------------------------------- The members of Gavea Global Fund Ltd on Feb. 3, 2017, passed a resolution to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by March 15, 2017, will be included in the company's dividend distribution. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman, KY1-9005 Cayman Islands c/o Kim Charaman Telephone: (345) 943-3100 GAVEA GLOBAL SPV: Commences Liquidation Proceedings --------------------------------------------------- The members of Gavea Global SPV on Feb. 3, 2017, passed a resolution to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by March 15, 2017, will be included in the company's dividend distribution. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman, KY1-9005 Cayman Islands c/o Kim Charaman Telephone: (345) 943-3100 GNETOP INC: Creditors' Proofs of Debt Due March 27 -------------------------------------------------- The creditors of Gnetop Inc. are required to file their proofs of debt by March 27, 2017, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Feb. 3, 2017. The company's liquidator is: Lin Yongyuan c/o Michelle R. Bodden-Moxam Portcullis (Cayman) Ltd, The Grand Pavilion Commercial Centre Oleander Way, 802 West Bay Road P.O. Box 32052, Grand Cayman, KY1-1208 Cayman Islands HAWAII ASIA: Commences Liquidation Proceedings ---------------------------------------------- The sole shareholder of Hawaii Asia Holdings II Limited on Feb. 2, 2017, passed a resolution to liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 NMS SERVICES: Commences Liquidation Proceedings ----------------------------------------------- The members of NMS Services (Cayman) Inc. Limited on Feb. 1, 2017, passed a resolution to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by March 15, 2017, will be included in the company's dividend distribution. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman, KY1-9005 Cayman Islands c/o Susan Craig/Jennifer Chailler Telephone: (345) 943-3100 NORTH AMERICAN: Sole Member Receives Wind-Up Report --------------------------------------------------- The sole member of North American Aircraft Hire Co. Limited received on March 13, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Thomas Mylott Marguerite Britton c/o 238 North Church Street P.O. Box 1043 George Town Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 640-6600 PETROASIA LIMITED: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of Petroasia Limited received on March 13, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Chris Narborough DMS House, Ground Floor 20 Genesis Close P.O. Box 1103, George Town Grand Cayman KY1-1103 Cayman Islands RESIDENTIAL REINSURANCE: Creditors' Proofs of Debt Due April 10 --------------------------------------------------------------- The creditors of Residential Reinsurance 2012 Limited are required to file their proofs of debt by April 10, 2017, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Jan. 19, 2017. The company's liquidators are: Kevin Poole James Trundle 171 Elgin Avenue, Willow House P.O. Box 10233 Grand Cayman Cayman Islands Telephone: 914-2270/ 949-5263 Facsimile: 949-6021 SUNRISE CAPITAL: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Sunrise Capital Diversified Ltd. received on March 15, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Andre Slabbert Estera Trust (Cayman) Limited 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands Telephone: +1 (345) 640 0540 UNIVERSITY OF TOLEDO: Shareholders Receive Wind-Up Report --------------------------------------------------------- The shareholders of The University of Toledo Medical Assurance Company SPC received on March 13, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Strategic Risk Solutions (Cayman) Limited North Building, 2nd Floor, Caribbean Plaza 878 West Bay Road P.O. Box 1159 Grand Cayman KY1-1102 Cayman Islands Telephone: +1 (345) 623 6611 Facsimile: +1 (345) 946 6612 WALDEN LIMITED: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Walden Limited received on March 8, 2017, received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ryder Consultancy Limited c/o Ian Williams Walkers 190 Elgin Avenue George Town Grand Cayman KY1-9001 Cayman Islands Telephone: +44 (0)20 7220 4980 WESTERN HEMISPHERE: Sole Member Receives Wind-Up Report ------------------------------------------------------- The sole member of Western Hemisphere Aviation Financial Services Co., Limited received on March 13, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Thomas Mylott Marguerite Britton c/o 238 North Church Street P.O. Box 1043 George Town Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 640-6600 ========= C H I L E ========= SMU SA: S&P Raises CCR to 'B-' on Improved Capital Structure ------------------------------------------------------------ S&P Global Ratings raised its long-term corporate credit and issue-level ratings on SMU S.A. y Filiales to 'B-' from 'CCC+'. The outlook is positive. S&P believes that the investors in SMU senior notes don't face a significant disadvantage as creditors of the holding company, because the notes are guaranteed by operating subsidiaries that generate the bulk of SMU's consolidated EBITDA. The upgrade and positive outlook reflect S&P's view of the improved capital structure and the expectation that the company will reduce leverage in the next two years. S&P believes the IPO concluded in January 2017 marks the end of a restructuring period started in 2014 in which the company focused on achieving a sustainable business model and financial structure by improving its operating efficiency and defining a commercial strategy. For the next two years, S&P expects management to keep up the efficiency initiatives and to increase store productivity to maintain more gradual but steady margin improvement, with modest capital investments. Amid these efforts, S&P forecasts the company will generate excess cash to repay debt and gradually reduce its still high leverage. S&P believes the company has a somewhat weaker brand against stronger competitors in the developed Chilean retail market, with little geographic diversification and revenues concentrated in the food retail segment. Although less diversified than peers that also act in different retail segments, this is partially mitigated by the greater stability of food retailing through economic cycles. Although S&P forecasts a gradual increase over coming years from remodeling, SMU's sales per square meter of store space are lower than its closest peers'. Partially counterbalancing factors include the company's position as the third-largest food retailer in Chile, with about 21% market share, and its multi- format structure that allows reaching different types of customers. These factors lead to S&P's assessment of a weak business risk profile. The IPO and operational improvements set the ground for a gradual leverage reduction, but S&P still expects the company to post metrics in line with a highly leveraged financial risk profile until 2018. S&P assess comparable rating analysis as negative, based on the latter and the fact that S&P needs to see some more track record of consistently increasing profitability and cash flow generation before assessing the company's rating at one notch higher. =============== C O L O M B I A =============== ELECTRIFICADORA DEL CARIBE: Colombia to Liquidate Company --------------------------------------------------------- Sara Schaefer Munoz at The Wall Street Journal reports that Colombian authorities said they would liquidate electricity- provider Electrificadora del Caribe SA over the objections of its parent, Spain's Gas Natural SDG SA, in the latest escalation of tensions between Colombia and one of Europe's largest utility providers. Colombian officials took over the troubled power company, known as Electricaribe, four months ago, according to The WSJ. Jose Miguel Mendoza, the country's superintendent of services, said Electricaribe's distribution network, which serves Colombia's Caribbean cost but caused frequent blackouts, is unfit to provide adequate service to its 2.5 million customers and that the firm cannot afford the necessary upgrades, the report relays. "The company is not in a condition to provide energy with the quality and continuity needed," the report quoted Mr. Mendoza as saying. "We will have an absolutely public selection process in which we will choose the best option for the coast." The report notes that power service will continue while the superintendent's office begins the process of auctioning Electricaribe's assets to pay off liabilities of around $830 million, Mr. Mendoza said. In a release, Gas Natural, which holds an 85% stake in Electricaribe, called the liquidation process "contrary to the conversation" the countries had pursued over the past several months, and contrary to "the spirit of deepening of commercial ties between the European Union and Colombia," the report relays. The Spanish power provider said it would seek recourse through the arm of the World Bank that handles state-investor disputes, the report notes. The company's November takeover angered Gas Natural officials, who have said the decaying distribution network is the result of financial woes stemming from millions in unpaid customer bills, the report discloses. Natural Gas officials have also complained that Colombia does little to control what they say are tens of thousands of Colombians tapping into power lines illegally, or to guarantee the safety of their workers charged with disconnecting the illegal lines, the report relays. Officials in coastal towns have said they are combating the problem, the report notes. Colombian President Juan Manuel Santos praised the move toward liquidation, saying in a message on his Twitter account that "the process of the liquidation of Electricaribe is responsible, the report notes. The priority is that neither individuals or companies suffer because of electricity supply," the report adds. =========== M E X I C O =========== MINERA FRISCO: Moody's Ups Sr. Unsec. Nat'l Scale Rating to B3.mx ----------------------------------------------------------------- Moody's de Mexico has upgraded the senior unsecured national scale rating of Minera Frisco, S.A.B. de C.V. to B3.mx from Caa1.mx. RATINGS RATIONALE The action reflects the correction of a prior error. In the 13 June 2016 rating action, when Moody's repositioned national scale ratings of non-financial corporates following the recalibration of Mexico's national rating scale, an inappropriate national scale rating map was used. The error has now been corrected, and rating action reflects the use of the appropriate rating map. All other ratings of Minera Frisco remain unchanged. Minera Frisco's B3 corporate family rating continues to reflect its high leverage, as well as its small scale compared to peers, modest reserves in certain of its mines and the pressures on its production which has been declining recently. In addition, the rating also incorporates the company's weak liquidity profile. Nevertheless, the B3 also takes account of Minera Frisco's moderate mine diversification and expected enhanced metal diversification, once the Tayahua Primary Copper project is finalized and substantially increases the company's copper production. An upgrade would require improvements in the company's liquidity and credit metrics. Quantitatively, an upgrade would require debt/EBITDA below 4.5x and EBIT/interest expense above 2.0x on a sustained basis, both as adjusted by Moody's. The ratings could be downgraded if Minera Frisco experiences any significant operational difficulties or a substantial increase in operating costs. Quantitatively, a downgrade would be considered if debt/EBITDA increases to above 5.5x on a sustained basis. A downgrade would also occur if the company's liquidity profile deteriorates further. Minera Frisco is dedicated to the exploration and exploitation of mining lots for the production and sale of gold and silver dore bars, as well as copper cathode and copper concentrate, lead- silver and zinc concentrates. The company has nine mining units in Mexico and generated MXN13.9 billion of revenues in 2016. The principal methodology used in this rating was Global Mining Industry published in August 2014. Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". While NSRs have no inherent absolute meaning in terms of default risk or expected loss, a historical probability of default consistent with a given NSR can be inferred from the GSR to which it maps back at that particular point in time. For information on the historical default rates associated with different global scale rating categories over different investment horizons. The period of time covered in the financial information used to determine Minera Frisco, S.A.B. de C.V.'s rating is between 01/01/2012 and 12/31/2016 (source: audited financial statements and regulatory filings). UNIFIN FINANCIERA: S&P Affirms 'BB' Issuer Credit Rating -------------------------------------------------------- S&P Global Ratings affirmed its global scale 'BB' issuer credit and issue-level ratings on Unifin Financiera, S.A.B. de C.V. SOFOM, E.N.R. S&P also affirmed its 'mxA/mxA-2' national scale counterparty credit rating. Outlook remains stable. S&P's ratings on Unifin reflect its stable and growing operating revenue base as well as a diversified loan portfolio by sectors. Moreover, the ratings also incorporate S&P's forecasted RAC ratio of 8.4% for the next 18 months and a risk position that reflects a slight increase in the firm's NPAs as well as subpar reserve coverage. Furthermore, S&P's funding and liquidity assessment on the lender reflects a diversified funding structure compared with the Mexican NBFI industry and liquidity levels sufficient with ongoing operations. Unifin's stand-alone credit profile (SACP) remains at 'bb'. =============== P A R A G U A Y =============== PARAGUAY: Moody's Assigns (P)Ba1 Global Bond Rating --------------------------------------------------- Moody's Investors Service has assigned a provisional rating of (P) Ba1 to Paraguay's global bond, the same level as Paraguay's issuer rating. In making this decision, Moody's was guided by the following considerations: 1) The Bond constitutes direct, general, unconditional and unsubordinated External Debt of the Republic of Paraguay and will rank equally with all other unsubordinated External Debt of the Republic. 2) Moody's assessment, based on legal opinion and Paraguay's Supreme Court ruling, that the new bond is legal and enforceable, according to Paraguay's Constitution and budget laws currently in effect. The government of Paraguay is issuing a global bond under New York law in the amount of $500 million. Moody's assigned a provisional rating of (P) Ba1 to the new bond, in line with Paraguay's issuer rating. Despite objections by elements in Congress regarding the legality of the issuance of debt under the 2016 budget law, currently in effect for 2017, it is Moody's assessment, based on legal opinion and the ruling by Paraguay's Supreme Court, that the new bond is legal according to Paraguay's Constitution and laws in effect, therefore it constitutes a direct and enforceable liability of the government and ranks equally with other external debt issued by the Republic of Paraguay. Hence Moody's assigned the current issuer rating of the government of Paraguay. Were this legal opinion to change, or if the enforceability of the debt were to be challenged under subsequent law, this would cause us to reassess credit risk and could have rating implications. RATINGS RATIONALE FIRST DRIVER: THE BOND CONSTITUTES DIRECT, GENERAL, UNCONDITIONAL, AND UNSUBORDINATED DEBT OF THE REPUBLIC OF PARAGUAY According to the preliminary offering memorandum, the bonds constitute and will constitute direct, general, unconditional and unsubordinated external debt of the Republic of Paraguay for which the full faith and credit of the Republic is pledged. The bonds rank and will rank without any preference among themselves and equally with all other unsubordinated external debt of the Republic. Accordingly, the provisional rating assigned is fully aligned to the government's issuer rating of Ba1 which balances the government's strong fiscal position, improving fiscal framework, and on-going economic diversification, against the economy's dependence on agriculture, its growth volatility, and overall weak institutions. SECOND DRIVER: MOODY'S ASSESSEMENT THAT THE BOND IS A LEGAL AND ENFORCEABLE DEBT OBLIGATION, ACCORDING TO PARAGUAY'S CONSTITUTION AND LAWS CURRENTLY IN EFFECT Moody's assessment, based on legal opinion and ruling by Paraguay's Supreme Court, confirms the legality and enforceability of the bond issued under the 2016 Budget Law, which is currently in effect as the budget law for 2017. The 2016 budget law has come into effect in its entirety, following the President's veto of the 2017 budget law, and is thus applicable to the 2017 fiscal year, with all the financing sources contemplated, including public external debt. Neither the Constitution nor Paraguayan laws provides for partial exclusion of the budget law or require further approvals by the Congress in case the budget law of the previous fiscal year applies. In consequence, the Congress is deemed to have granted valid authorization to issue external bonds by passing the 2016 budget law, currently in effect for 2017. Similarly, in 2013, 2014, 2015 and 2016, the government legally issued bonds in the international capital markets with the authorization of the Congress, which was embedded in the budget law of the respective year. In addition, the declaratory judgment on Constitutional Certainty issued by the Supreme Court of Paraguay gives certainty regarding the legality of the issuance. Such judgment may not be set aside under any resource, challenge or argument in light of the Constitution and Paraguayan laws as currently in force. GDP per capita (PPP basis, US$): 9,050 (2015 Actual) (also known as Per Capita Income) Real GDP growth (% change): 4.1% (2016 Actual) (also known as GDP Growth) Inflation Rate (CPI, % change Dec/Dec): 3.9% (2016 Actual) Gen. Gov. Financial Balance/GDP: -1.5% (2016 Actual) (also known as Fiscal Balance) Current Account Balance/GDP: -1.2% (2015 Actual) (also known as External Balance) External debt/GDP: 59.5% (2015 Actual) Level of economic development: Low level of economic resilience Default history: No default events (on bonds or loans) have been recorded since 1983. On March 20, 2017, a rating committee was called to discuss the rating of the Paraguay, Government of. The main points raised during the discussion were: The issuer's economic fundamentals, including its economic strength, have not materially changed. The issuer's institutional strength/ framework, have not materially changed. The issuer's fiscal or financial strength, including its debt profile, has not materially changed. The principal methodology used in this rating was Sovereign Bond Ratings published in December 2016. The weighting of all rating factors is described in the methodology used in this credit rating action, if applicable. ======= P E R U ======= COMPANIA MINERA: S&P Affirms 'BB' CCR; Outlook Remains Stable ------------------------------------------------------------- S&P Global Ratings said that it affirmed its 'BB' corporate credit and issue-level ratings on Peruvian mining company Compania Minera Milpo S.A.A. The outlook remains stable. The affirmation reflects Milpo's solid credit metrics over the last quarters due to higher zinc prices. It also reflects the company's solid cash position due to a $250 million upfront deposit as a result of a silver streaming transaction. S&P also took into account Milpo's solid operational results, underpinned by the expansion of the Cerro Lindo mine's capacity to 20,000 tons per day (tpd) in 2016 from 18,000 tpd in 2015 as well as the integration of the El Porvenir and Atacocha facilities at the Pasco complex. S&P expects that these factors will continue to support EBITDA margins of about 36%-40% over the next years and strong cash flow generation. Votorantim S.A. (BB+/Negative/--), through its subsidiary Votorantim Metais Cajamarquilla S.A. (not rated), has consistently increased its ownership in Milpo since 2005. On April 22, 2016, the group increased its participation to 80% from 50%. S&P believes this demonstrates Milpo's relevance to the group's overall strategy, and S&P now views Milpo as almost integral to the group. In addition, S&P believes that the increase in ownership gives additional incentives to provide support under almost all foreseeable circumstances in times of stress. And although Milpo does not share the group name, it remains closely linked to the group's brand and risk management. Due to these factors, S&P revised its assessment of Milpo's group status to highly strategic from strategically important. The rating on Milpo reflects the company's continuous efforts to increase production capacity at Cerro Lindo, which S&P expects to stabilize at about 20,000 tpd by the end of 2017, and cost-cutting measures that have contributed to preserve margins at this complex. It also takes into account the completion of the third phase of the integration of the Atacocha and El Porvenir facilities at the Pasco complex, which included a new energy line for both processing plants and improved the complex's margins in 2016. S&P expects the fourth stage of integration to be completed through 2018 and that it will facilitate access to resources in Atacocha's deepest zones through El Porvenir's infrastructure. S&P also believes this initiative will continue to reduce the complex's overall cash cost. Although S&P believes the Pasco integration is gradually improving the complex's contribution to Milpo's consolidated EBITDA, Cerro Lindo continues to account for about 80% of the company's consolidated EBITDA. This--along with a product portfolio concentrated in zinc--constitute key ratings constraints because of the exposure to sudden drops in production and zinc price swings, which have affected profitability in the past. However, in S&P's opinion, the start of copper operations at Magistral, scheduled by 2020, will help reduce this dependence by diversifying the current asset portfolio and revenue stream. S&P's financial risk profile assessment incorporates its expectation that Milpo will maintain its debt to EBITDA and FFO to debt ratios below 3.0x and above 30%, respectively, mainly because of higher EBITDA generation due to higher prices and sustained output at Cerro Lindo and Pasco. S&P also expects the company to generate negative cash flow for debt repayment over the next three years due to the continuation of its share-repurchase program in 2017, which will consume some of the cash balance, and capital expenditures related to the Magistral project through 2018 and 2019. S&P's base case scenario for 2017 and 2018 includes these assumptions: -- Zinc prices at $2,500 per ton for 2017 and $2,400 for 2018 given the closure of certain mines and modest demand growth, gradually decreasing in 2018 as some marginal players restart production. Lead prices at $2,200 per ton in 2017 and $2,208 in 2018 and copper prices at $5,070 per ton in 2017 and $5,290 in 2018. -- Cerro Lindo's treatment capacity at an average of 20,000 tpd in 2017, stabilizing at 21,000 tpd onwards. Pasco treatment capacity marginally increasing through 2017 and 2018. -- Revenue growth of 15.6% in 2017 due to an increase in zinc and lead prices. S&P expects a 3% revenue contraction in 2018 as global zinc production regains traction and global supply recovers from 2017 levels, also influenced by lower output at Cerro Lindo. -- Cash cost in Cerro Lindo slightly increasing from $27.8 per treated ton (ptt) in 2016 to $29.9 ptt in 2017 and $30 ptt in 2018 due to the progression of the natural life of the mine. Cash cost in the Pasco complex decreasing from $43.3 ptt in 2016 to $41.6 ptt in 2017 and $40.7 ptt in 2018 due to the gradual integration of El Porvenir and Atacocha. -- EBITDA margin at 40% for 2017 despite a better pricing environment due to an increase in greenfield and exploration expenses. S&P expects the EBITDA margin to decrease to 37% on lower prices in 2018 and gradually recover thereafter. -- Capital expenditures at $71 million in 2017, mainly for maintenance purposes. In 2018, S&P expects capex to increase to about $220 million because of the start of the Magistral copper project, which S&P expects to be operational by 2020. -- The continuation of a share repurchase program started in 2015, which S&P expects to consume some of Milpo's cash balance. -- Dividend payments of about 25% of net income. Resulting from these assumptions, S&P arrives to these adjusted credit metrics: -- Debt to EBITDA of 1.25x for 2017 and 1.41x for 2018. -- FFO to debt of 53.5% in 2017 and 50.5% in 2018. -- FOCF to debt of 16.3% in 2017 and negative 4.7% in 2018. The stable outlook reflects S&P's view that Milpo will continue to deliver solid operational results, with Cerro Lindo's output capacity stabilizing at about 20,000 tpd by the end of 2017 and the Pasco integration providing significant operating efficiencies for the next 12 months. S&P also expects higher zinc prices to continue to enhance the company's financial position and provide some headroom to cope with potential industry swings in the future to maintain company's financial performance. The outlook also reflects that a one-notch downgrade of Milpo's ultimate parent, Votorantim, would not immediately trigger a corresponding downgrade of Milpo because of its status as a highly strategic subsidiary. S&P could revise Milpo's stand-alone credit profile if its credit metrics deteriorate, leading to FFO to debt below 30% or debt to EBITDA above 3.0x. This could occur because of, for example, lower-than-expected revenues as a result of lower prices or a sudden drop in one of its main assets' production. S&P could also downgrade the company if it was to downgrade Votorantim by two or more notches. S&P could upgrade Milpo if its revenue stream diversifies to the point that its dependence on the Cerro Lindo mine decreases to less than 50%, improving its business risk profile while maintaining current sales levels and credit metrics. The Magistral project could contribute to this once it starts operations. S&P could also upgrade Milpo if S&P upgrades Votorantim, though that is currently unlikely given the negative outlook. ================= X X X X X X X X X ================= LATAM: Latino Firms Seek Prosperity Building Trump's Wall --------------------------------------------------------- Jorge Mederos at EFE News reports that more than 60 Hispanic companies, all interested in constructing the controversial wall that U.S. President Donald Trump wants to build on the Mexican border, are putting aside political and patriotic concerns for the chance to make money and create jobs. "Honestly, for us it is above all an infrastructure project and a way to create jobs, something we really need in New Mexico," Mario Burgos of the Burgos Group construction company told EFE, adding that his state has an unemployment rate of 6.7 percent, the country's highest. Of Peruvian descent, Mr. Burgos said that if the family business takes part in a project that can award contracts worth $20 billion, that's not being anti-immigrant, it's just being practical, according to EFE News. Amadeo Saenz of the Texas firm J.D. Adams was of the same opinion. He said that though for the past eight years the company has been a cooperative owned by the employees, most of them Hispanic, when they decided to take part they didn't think about the "political aspects, just the economic ones," the report relays. This construction company based in Austin, Texas, which has laid highways and built bridges for a total of around $300 million in state and federal contracts, now sees the chance to take part in a giant infrastructure project, the report discloses. The report relays that the wall was one of the Trump's leading electoral promises and annoyed many in Mexico, which according to the president would have to pay for the entire construction as compensation for allowing criminals and rapists to come into the United States. Mr. Saenz told EFE he understands the logistical difficulties of finishing a wall that already exists along some 354 miles of border in California, Arizona, New Mexico and part of Texas, in order to make it extend the entire 2,000 miles of border between Mexico and the US. According to the US government, the wall, to be built in three stages, will be 30 feet (9 meters) high so no one can climb over it, must resist intentional damage, and will take at least 3 1/2 years to build, according to the Department of Homeland Security (DHS), which must also deal with purchasing and expropriating the land, the report relays. Ricardo Diaz of Halbert Construction, located in El Cajon near San Diego, California, said that his company has 38 employees with very different origins and opinions about Trump and the wall, but that does not stop them from being interested in the work, the report notes. "Someone has to do it, work is work and political affiliations don't matter," he added, notes the report. From the city of Luquillo, Puerto Rico, retired military engineer Patrick Balcazar told EFE that he is against the wall, and in his opinion it would be better to develop both sides of the border to stop the undocumented from emigrating, the report notes. But his company San Diego Project Management, with experience in design and development of large contracts, believes participation in the wall project would help alleviate the island's economic problems, the report discloses. "There's no work in Puerto Rico, we're going through a depression and to keep up with my payroll I have to take advantage of whatever comes my way," he said, the report relays. The report dislcoses that Mr. Balcazar said that Puerto Rico could contribute cement and the ability of build prefabricated structures to be assembled on the construction site, though he admitted it will be "a fight between David and Goliath," because there are huge international companies also interested in the project. In his opinion, says the report, it would be a paradox if the Mexican consortium Cemex, one of the leading producers of cement in the world and which has several plants in the United States, were to provide the material to build Trump's wall. *********** 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 * * *