/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170330.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 30, 2017, Vol. 18, No. 64 Headlines B R A Z I L BANCO MERCANTIL: S&P Affirms Then Withdraws 'B-/C' GS Ratings VALE SA: Shares Sale in Coal Business Credit Pos., Moody's Says C A Y M A N I S L A N D S AMC II A: Placed Under Voluntary Wind-Up AXIS INTERNATIONAL: Creditors' Proofs of Debt Due March 31 CANDLEWICK LIMITED: Shareholders Receive Wind-Up Report JANEZ INC: Shareholders Receive Wind-Up Report KEYWISE ZOOX: Commences Liquidation Proceedings PLATINUM PARTNERS: Appoints MacInnis & Borrelli as Liquidators POLYMER FINANCE: Placed Under Voluntary Wind-Up ROPPONGI SKYTOWER: Commences Liquidation Proceedings SYMBOLTECH HOLDINGS: Commences Liquidation Proceedings SYMPOSIUM MANAGEMENT: Placed Under Voluntary Wind-Up TAO INVESTMENT: Commences Liquidation Proceedings TRAFIN 2011-1: Commences Liquidation Proceedings WALNUT TREE: Placed Under Voluntary Wind-Up WAVESTONE CAPITAL: Commences Liquidation Proceedings C O L O M B I A ELECTRICARIBE: Spain Calls for "Negotiated Solution" C O S T A R I C A BANCO POPULAR: Fitch Affirms BB Long-Term IDRs; Outlook Stable E C U A D O R GRENADA: IMF Sees Marked Progress but says Public Debt Still High J A M A I C A JAMAICA: Labor Ministry Intervenes in Dispute at BOJ SCOTIABANK: Jobs on the Line as Bank Restructures M E X I C O GUADALUPE ZACATECAS: Fitch Ratifies BB+ Credit Quality Rating OTHON P. BLANCO: Fitch Ratifies BB+ Credit Quality Rating SOYANIQUILPAN DE JUAREZ: Fitch Ratifies BB Credit Quality Rating T R I N I D A D & T O B A G O DIGICEL GROUP: No Decision Yet on T&T's Operations TRINIDAD & TOBAGO: Chamber Upset With Imbert's Forex Plan V E N E Z U E L A VENEZUELA: Group of Nations Urges Country to Return to Democracy - - - - - =========== B R A Z I L =========== BANCO MERCANTIL: S&P Affirms Then Withdraws 'B-/C' GS Ratings ------------------------------------------------------------- S&P Global Ratings affirmed its 'brB' Brazilian national-scale issuer credit rating on Banco Mercantil do Brasil S.A. (BMB). S&P also affirmed and withdrew its 'B-/C' global scale ratings. The outlook on the national scale ratings remains negative. BMB has improved its regulatory capital ratios and liquidity metrics in the past 12 months, despite still poor asset quality metrics. The bank continues to struggle to expand its lending and maintain a stable operating revenue base amid Brazil's tough economy. The ratings on BMB reflect its somewhat concentrated business profile--mostly lending to small- to mid-size enterprises (SMEs) and individuals that have retiree benefits--though the bank's vast client base tempers the impact of this concentration. S&P also bases its ratings on its expectation that BMB will maintain its current internal capital generation, leading to a forecasted risk- adjusted capital (RAC) ratio of about 4.5% for the next two years. Moreover, S&P's assessment reflects the bank's weaker asset quality metrics than those of its peers. The ratings also reflect S&P's view of a funding structure, which still has narrow diversification of stable funding sources, and its liquidity position that provides adequate cushion to cope with cash outflows over the next 12 months. VALE SA: Shares Sale in Coal Business Credit Pos., Moody's Says --------------------------------------------------------------- Moody's Investors Service comments that the conclusion of the equity portion of the so-called "global coal" transaction is credit positive for Vale S.A. (Ba2 Positive). Vale will sell to Mitsui & Co Ltd. ((P)A3 Negative) part of its equity share in the Moatize coal mine and in the Nacala Logistics Corridor in Mozambique for USD770 million. The conclusion of this transaction, initially announced in December 2014, will bring USD733 million in proceeds to Vale now, improving its liquidity. The remaining USD37 million will be received at the conclusion of the project finance transaction of up USD2.7 billion that will help fund the project, expected to happen still in 2017. ========================== C A Y M A N I S L A N D S ========================== AMC II A: Placed Under Voluntary Wind-Up ---------------------------------------- The members of AMC II A Limited, on Feb. 15, 2017, passed a resolution to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by March 20, 2017, will be included in the company's dividend distribution. The company's liquidator is: Richard Fear c/o Kevin Butler P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands Telephone: (345) 814 7374 Facsimile: (345) 945 3902 AXIS INTERNATIONAL: Creditors' Proofs of Debt Due March 31 ---------------------------------------------------------- The creditors of Axis International Ltd. are required to file their proofs of debt by March 31, 2017, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Feb. 15, 2017. The company's liquidators are: Christopher Smith Lee Hart Telephone: (345) 947 4700 CANDLEWICK LIMITED: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Candlewick Limited received on March 22, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on Feb. 13, 2017. The company's liquidator is: Vistra Cayman Hibiscus Way 802 West Bay Road Grand Cayman KY1-1205 P.O. Box 31119 Grand Pavilion Cayman Islands JANEZ INC: Shareholders Receive Wind-Up Report ---------------------------------------------- The shareholders of Janez Inc. received on March 27, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidators are: Mr. Ze Lin No 38, Zheda Road, Xihu District Hangzhou City Zhejiang Province PRC; and Long Ma No.130 Meilong Road Xuhui District, Shanghai PRC KEYWISE ZOOX: Commences Liquidation Proceedings ----------------------------------------------- The sole shareholder of Keywise Zoox, on Feb. 16, 2017, resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 PLATINUM PARTNERS: Appoints MacInnis & Borrelli as Liquidators -------------------------------------------------------------- The Grand Court of Cayman Islands, on Feb. 14, 2017, appointed Margot MacInnis and Cosimo Borrelli as liquidators of Platinum Partners Value Arbitrage Intermediate Fund Ltd. The Liquidators can be reached at: Margot MacInnis Borrelli Walsh (Cayman) Limited Harbour Place, Ground Floor 103 South Church Street Grand Cayman Cayman Islands; and Cosimo Borrelli Borrelli Wash Limited Level 17, Tower I, Admiralty Centre 18 Harcourt Road Hong Kong POLYMER FINANCE: Placed Under Voluntary Wind-Up ----------------------------------------------- The shareholders of Polymer Finance Ltd., on Feb. 15, 2017, passed a resolution to voluntarily wind up the company's operations. Creditors are required to file their 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 The Grand Pavilion Commercial Centre 802 West Bay Road P.O. Box 2428 Grand Cayman KY1-1105 Cayman Islands Telephone: (345) 945-1111 ROPPONGI SKYTOWER: Commences Liquidation Proceedings ---------------------------------------------------- At an extraordinary meeting held on Feb. 17, 2017, the members of Roppongi Skytower Corporation resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: David Dyer P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands Telephone: (345)949-8244 Facsimile: (345)949-5223 SYMBOLTECH HOLDINGS: Commences Liquidation Proceedings ------------------------------------------------------ The members of Symboltech Holdings Inc., on Feb. 27, 2017, passed a resolution to liquidate the company's business. Only creditors who were able to file their proofs of debt by March 28, 2017, will be included in the company's dividend distribution. The company's liquidator is: Maricorp Services Ltd. c/o Steven J. Barrie #31 The Strand, 46 Canal Point Drive P.O. Box 2075 Grand Cayman KY1-1105 Cayman Islands Telephone: (345) 949-9710 SYMPOSIUM MANAGEMENT: Placed Under Voluntary Wind-Up ---------------------------------------------------- The sole shareholder of Symposium Management Partners Ltd., on Feb. 17, 2017, passed a resolution to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by March 20, 2017, will be included in the company's dividend distribution. The company's liquidator is: Razorfish Limited Campbells Corporate Services (BVI) Limited P.O. Box 4541, Floor 2 Romasco Place Road Town Tortola VG1110 British Virgin Islands Telephone: +1 (284) 494 2423 Facsimile: +1 (284) 494 2475 TAO INVESTMENT: Commences Liquidation Proceedings ------------------------------------------------- The members of Tao Investment Company, on Feb. 17, 2017, passed a resolution to liquidate the company's business. Only creditors who were able to file their proofs of debt by March 27, 2017, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands TRAFIN 2011-1: Commences Liquidation Proceedings ------------------------------------------------ At an extraordinary meeting held on Feb. 16, 2017, the members of Trafin 2011-1, Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: David Dyer P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands Telephone: (345)949-8244 Facsimile: (345)949-5223 WALNUT TREE: Placed Under Voluntary Wind-Up ------------------------------------------- The sole shareholder of Walnut Tree Limited, on Feb. 17, 2017, passed a resolution to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by March 20, 2017, will be included in the company's dividend distribution. The company's liquidator is: Razorfish Limited Campbells Corporate Services (BVI) Limited P.O. Box 4541, Floor 2 Romasco Place Road Town Tortola VG1110 British Virgin Islands Telephone: +1 (284) 494 2423 Facsimile: +1 (284) 494 2475 WAVESTONE CAPITAL: Commences Liquidation Proceedings ---------------------------------------------------- The sole shareholder of Wavestone Capital Australian Absolute Return (Offshore) Fund, on Feb. 17, 2017, resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre 27 Hospital Road, George Town Grand Cayman KY1-9008 Cayman Islands Telephone: +1 (345) 949 0100 =============== C O L O M B I A =============== ELECTRICARIBE: Spain Calls for "Negotiated Solution" ---------------------------------------------------- Ramon Munoz at El Pais reports that Madrid supports a "negotiated solution" to the dispute between Spain's energy utility Gas Natural Fenosa and the Colombian government, after the latter on March 14 liquidated Electricaribe, the electricity distributor that supplies electricity to almost COP2.5 million. On March 16, the Spanish government expressed regret over the Colombian decision and said it would support Gas Natural if it decided to pursue legal action, according to El Pais. Speaking during a visit to Mexico, Spain's foreign minister, Alfonso Dastis, pointed out that if Gas Natural Fenosa cannot reach an agreement with Colombia, "there are juridical mechanisms," referring to the International Centre for Settlement of Investment Disputes (ICSID), the report relays. Gas Natural Fenosa have told EL PAIS they will file a complaint within 15 days with the World Bank's ICSID agency over Colombia's decision to liquidate Electricaribe, the report discloses. In November, the Colombian government took control of the company, which is 85.38% owned by Spanish energy utility Gas Natural Fenosa, citing risks from lack of payment and quality of service, the report recalls. High-level Meetings The report notes that the Colombian government has launched a diplomatic offensive in a bid to calm Spanish investors in the South American country. There have reportedly been high-level meetings between senior government officials and the heads of Spanish companies operating in Colombia to emphasize that their assets are protected by law and that the government's intervention in Electricaribe has been an exception and justified, said diplomatic sources. The report relays that the message being sent out by the government of President Juan Manuel Santos is that the takeover of Electricaribe is not an "expropriation" and that the Colombian government "is not looking, nor is it empowered" to, hold onto the company, and that it "will always protect private investment." More than 400 Spanish companies are present in Colombia, among them Telefonica, Sacyr, Repsol, Mapfre, and Aena. Ongoing Trouble Electricaribe, which serves the Colombian Caribbean provinces of Atlantico, Bol°var, Cesar, Cordoba, La Guajira, Magdalena and Sucre, hit problems early last year, with customers complaining about frequent power outages, the report recalls. The report discloses that Gas Natural Fenosa, which bought a controlling stake in Electricaribe in 2000, has been accused of failing to invest in infrastructure and had stopped paying electricity suppliers. The Colombian government intervened in November due to a cash crunch at Electricaribe caused by a high number of unpaid bills and widespread consumer fraud, the report relays. Gas Natural Fenosa says the company has accumulated unpaid bills of EUR1.26 billion from some 1.5 million of its customers, the report notes. The report relays that Dastis defended Gas Natural Fenosa, saying that it had "worked positively and was prepared to adapt" to new conditions. The report notes that Spanish diplomatic sources say that two main points of disagreement between Gas Natural and the Colombian authorities had been overcome: payment of Electricaribe bills run up by public bodies and fighting consumer fraud. But so far there has been no agreement on new tariffs, and above all, on them being maintained long enough to be able to amortize the investments Gas Natural Fenosa was prepared to implement to ensure supplies, the report relays. Without these conditions, say diplomatic sources, the viability of Electricaribe could not be guaranteed. =================== C O S T A R I C A =================== BANCO POPULAR: Fitch Affirms BB Long-Term IDRs; Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed Banco Popular y de Desarrollo Comunal's (BPDC) Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB'. The Rating Outlook is Stable. Fitch has also affirmed the bank's short-term Foreign and Local currency IDRs at 'B' and its Viability Rating (VR) at 'bb'. KEY RATING DRIVERS IDR, VR, AND NATIONAL RATINGS BPDC's IDR and National ratings are driven by its intrinsic creditworthiness, as reflected in its VR. BPDC's VR and IDR reflect the high influence of the operating environment, the bank's public nature and the benefits granted by law. Ratings also consider BPDC's ample loss absorption capacity and good profitability, adequate asset quality, stable deposit-based funding but less flexible than closest peers. The National ratings of the senior unsecured debt in El Salvador and Panama reflect the relative strength of the Costa Rican bank compared to other issuers in those countries. The bank's ratings are at the same level as the sovereign rating ('BB'/Stable), reflecting the high influence of the operating environment on the bank's performance. Its financial performance is underpinned by its public nature and the benefits granted by law, such as mandatory capitalization and inflow of deposits. In Fitch's view, the bank's role in the pension regime as the depositary of mandatory savings from Costa Rican workers, its market share in consumer lending, and its franchise evidence its systemic importance. BPDC's capitalization is the financial profile's main strength with a Fitch Core Capital ratio of 24.8% as of December 2016, which is above similarly rated international and local peers. The bank maintains an ample buffer above the solvency metrics required by regulation, buttressed by good profitability, combined with the mandatory contributions it receives from employers. Asset quality metrics are adequate in Fitch's view, with a delinquency ratio (90 days past-due loans) of 2.3%, which has been gradually shrinking and is above the Costa Rican financial system average, as is expected of a retail-oriented bank. Important to note is performance of the bank's loans is controlled by adequate collateral coverage, effective collection mechanisms and sufficient reserves coverage for non-performing loans (NPLs). BPDC's funding structure is comprised primarily of deposits from the public, and those have shown a healthy increase in 2016, in contrast to last year's decline which was compensated for with a shift towards collecting deposits from banks. In Fitch's opinion BPDC's financial flexibility is lower than most local peers that have access to correspondent banks' funding and some of them have international debt issuances. BPDC's profitability compared above local peers and the industry average, underpinned by the bank's consumer lending business model. Nonetheless, in comparison the bank's financial performance was below the leaders in neighboring financial systems. The margin has slightly declined in recent years but still remains ample to offset the low operational efficiency of the bank. SUPPORT RATING AND SUPPORT RATING FLOOR The bank's SR of '3' and SRF of 'BB-' reflect the moderate probability of support from the Costa Rican government despite having no explicit guarantee, given the nature of the bank and its systemic importance. RATING SENSITIVITIES IDRs, VR and National Ratings BPDC's IDRs and VR are sensitive to changes in the sovereign rating. Potential upgrades of BPDC's IDRs and VR are unlikely in the foreseeable future. Conversely, a downgrade of the bank's VR and IDRs could be driven by a significant deterioration in profitability and asset quality that lead to a substantial drop in capital levels. However, the ratings are unlikely to be downgraded below its SRF of 'BB-', considering potential sovereign support. Changes triggered by movements in the sovereign rating would not affect National ratings in Costa Rica, as they would not alter relativities with local peers. On the contrary, such changes would alter the relative strength of BPDC compared to other issuers in Panama and El Salvador. SR and SRF BPDC's SR and SRF are also sensitive to changes in the sovereign rating. Fitch's base case scenario anticipates BPDC maintaining its current systemic importance and company profile and, in turn, changes to the SR and SRF are not likely. Fitch has affirmed BPDC's ratings: -- Long-Term Foreign Currency IDR at 'BB', Outlook Stable; -- Short-term Foreign Currency IDR at 'B'; -- Long-Term Local Currency IDR at 'BB', Outlook Stable; -- Short-term Local Currency IDR at 'B'; -- Viability Rating at 'bb'; -- Support Rating at '3'; -- Support Rating Floor at 'BB-'. National Ratings Costa Rica -- Long-term National rating at 'AA+(cri)'; Outlook Stable; -- Short-term National rating at 'F1+(cri)'; -- Long-term senior unsecured debt in local currency and foreign currency at 'AA+(cri)'; -- Short-term senior unsecured debt in local currency and foreign currency at 'F1+(cri)'. El Salvador -- Long-term senior unsecured debt at 'AAA(slv)'; Outlook Stable; -- Short-term senior unsecured debt at 'F1+(slv)'. Panama -- Long-term senior unsecured debt at 'A+(pan)'; -- Short-term senior unsecured debt at 'F1(pan)'. ============= E C U A D O R ============= GRENADA: IMF Sees Marked Progress but says Public Debt Still High ----------------------------------------------------------------- An International Monetary Fund (IMF) team led by Nicole Laframboise visited Grenada from March 15-22, 2017 to conduct discussions on the Sixth Review of Grenada's IMF-supported program under the Extended Credit Facility (ECF). The ECF arrangement was approved on June 26, 2014 for an amount of SDR 14.04 million (then US$19.4 million, or 120 percent of Grenada's quota at the IMF). Thus far, total resources of SDR 12.04 million (about US$17.5 million) have been made available to Grenada under the arrangement. At the conclusion of the visit, Ms. Laframboise made the following statement: "Overall performance during this last phase of the ECF-supported Home Grown program has been strong. The government has continued with steadfast implementation of reforms and made progress toward achieving the key program goals of restoring fiscal sustainability, strengthening the financial sector, and setting the stage for durable growth. "The staff team has assessed that the government met all of the performance criteria and structural benchmarks due at end-December 2016. All the indicative targets were met, except for a minor under-spending on the World Bank-supported SEED program because of extra time needed to process candidates under the new eligibility system. Nonetheless, it is worth noting that the results so far point to an improvement in the effectiveness and targeting of programs to those most in need. "Real GDP is estimated to have expanded by 3.9 percent in 2016, implying annual real GDP growth of 5.8 percent on average from 2014-2016. Activity in 2016 was driven by tourism, construction, and some pick up in domestic demand, while agriculture experienced weather-related contraction. Growth is expected to moderate to 2.5 percent in 2017, near its estimated potential. Average CPI inflation rose to 1.7 percent in 2016 and is forecast at 2.6 percent in 2017 as oil and food prices start to rise. With steady tourism momentum, the external position remains stable. The government achieved a primary surplus (fiscal balance excluding interest payments) in 2016 of 5.3 percent of GDP. Expenditures were kept under firm control, and tax revenues performed well across all categories, driven by improvements in compliance and administration as well as robust activity. "Grenada has also taken important steps towards completing the comprehensive debt restructuring started in 2014. Of the stock outstanding at program inception, over 90 percent has been restructured. Public debt is forecast to fall to 72 percent at end-2017, a drop of 36 percentage points from its peak of 108 percent in 2013. This sizeable decline in the debt-to-GDP ratio is attributed to all three key factors: debt relief and restructuring, fiscal adjustment, and strong GDP growth. "While improvements in economic indicators are noteworthy, there is still much to do to improve job prospects. Employment has grown on average by about 4 percent annually since 2014, but unemployment in Grenada is high, particularly for the youth. Labor force statistics suggest an important skills mismatch in the economy. A review of education curriculums and new labor market programs to improve training and job search tools, in collaboration with the private sector, would help address this mismatch. "To achieve broader-based growth, the government is focusing on structural reforms to improve the supply response. Based on the natural endowments and market brand, the agriculture sector could be a more important source of growth and employment in Grenada. The authorities are moving toward some liberalization in the sector and staff urges them to continue in that direction. The government is also taking steps to remove impediments to doing business, including streamlining property registration processes and customs procedures, and strengthening building quality control and regulation. Further consultations with the private sector in these areas could help identify pressure points to be addressed. "Despite marked progress, it is important to note that public debt is still relatively high and further effort is needed to reach the medium term target. Grenada is a small open economy susceptible to external shocks, including from natural disasters, swings in key tourism markets, commodity price shocks, as well as potential volatility of Citizen-by-Investment revenues. With these types of vulnerabilities, lower debt and higher reserve buffers will help the country mitigate the impact of external shocks to avoid output losses and setbacks in income and social progress. "In this light, continued policy resolve will be needed to safeguard the progress thus far and achieve the country's medium term debt reduction goals. The government agreed with staff on the imperative of adhering to the strengthened policy framework. Follow through on the Fiscal Responsibility legislation and the full set of systems and practices of public finance management developed over the past three years is critical to secure fiscal sustainability for future generations. It will also build credibility in the rules-based policy framework. "In support of this goal, the government is preparing a strategy to modernize the management of the public sector. This three-year strategy will aid in improving the operations and efficiency of the public sector as well as develop a fair and rational system of compensation and incentives. There will be extensive consultation on the strategy and its implementation with all stakeholders. "The government and people of Grenada should be commended for their achievements during the Home Grown program, particularly with respect to debt reduction, growth, and the strengthened fiscal policy framework. This success is due in no small part to the strong country ownership and high degree of consultation and collaboration with stakeholders, in particular the Committee of Social Partners and the Home Grown Monitoring Committee. We encourage Grenada to press ahead with its medium term goals and to focus on ways to promote growth further and lower unemployment to improve the economic opportunities for all Grenadians. "The IMF remains committed to supporting Grenada. The team is grateful for the warm welcome extended to us by the authorities and representatives of the private sector, labor, civil society, and financial institutions, and for the constructive discussions." ============= J A M A I C A ============= JAMAICA: Labor Ministry Intervenes in Dispute at BOJ ---------------------------------------------------- RJR News reports that Jamaica Ministry of Labour has intervened in the industrial dispute at the Bank of Jamaica (BOJ). It has scheduled a conciliation meeting with officials of the Central Bank and the Bustamante Industrial Trade Union which represents workers at the BOJ, according to RJR News. A statement from the Ministry said the meeting was called to deal with a 72-hour Notice of Industrial Action, issued by the Union, the report notes. This is in relation to alleged anomalies in the compensation structure at the Bank of Jamaica, the report relays. As reported in the Troubled Company Reporter-Latin America on Feb. 9, 2017, Fitch Ratings has affirmed Jamaica's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B' with a Stable Outlook. The issue ratings on Jamaica's senior unsecured Foreign and Local Currency bonds are also affirmed at 'B'. The Outlooks on the Long-Term IDRs are Stable. The Country Ceiling is affirmed at 'B' and the Short-Term Foreign Currency and Local Currency IDRs at 'B'. SCOTIABANK: Jobs on the Line as Bank Restructures ------------------------------------------------- Caribbean360.com reports that Scotiabank is to set to close and 100 Jamaicans could lose their jobs as Scotiabank embarks on a restructuring exercise. Bank officials confirmed the staff cuts but declined to announce the number, according to Caribbean360.com. However, according to President General of the Bustamante Industrial Trade Union (BITU) Kavan Gayle, about 100 positions would be made redundant by the Canadian bank, the report notes. The report, citing The Jamaica Observer, relays that the posts were being transferred from Jamaica and Trinidad and Tobago. According to Mr. Gayle, the workers to be affected include support staff that deal with certain services right across the region, the report notes. The bank justified the move saying the plans were in line with its focus to develop centers of excellence to establish best practices and improve efficiency, the report discloses. However, Mr. Gayle challenged the bank to clarify what it meant by "centres of excellence," the report notes. Meantime, Scotiabank assured that it would engage in fair and transparent negotiations with the BITU, which represents the majority of the affected employees in the units to be consolidated, the report discloses. The company assured it would do all in its power to minimize the impact on employees, the report relays. Three years ago, Scotiabank announced plans to conduct a US$451 million restructuring, which included closures and job losses in the Caribbean, the report relays. Scotiabank said it plans to close or downsize 120 branches outside Canada, largely in Mexico and the Caribbean, in a bid to save CAN$120 million (US$90 million) annually, the report says. It said it would close down 35 of its 200 branches in the Caribbean and would sever 1,500 full-time employees, including 500 from its international operations, the report adds. =========== M E X I C O =========== GUADALUPE ZACATECAS: Fitch Ratifies BB+ Credit Quality Rating -------------------------------------------------------------- Fitch Ratings ratified the credit quality rating of the municipality of Guadalupe, Zacatecas in 'BB + (mex)'. The credit outlook is stable. At the same time, it ratified the Bansi 14 loan, contracted for up to MXN180 million and a balance of MXN177 million at the end of 2016 at 'BBB + (mex) vra'. KEY FACTORS OF THE QUALIFICATIONS The ratification of the rating in Guadalupe's credit quality is based on its indicators of budgetary performance that remained stable in 2016. It also considers Fitch's expectation that long- term direct debt (DDLP) will remain low With respect to their ordinary tax revenues (IFOs) since there are no additional debt plans. The Municipality's finances are in the process of improving towards levels similar to those observed before the financial stress of 2013. In contrast, the limitations of the rating are very limited and volatile financial flexibility and weak debt sustainability. In addition, the indicator of collection efficiency that is below the median of the Group of Qualified Municipalities by Fitch (GMF) and which translates into a greater reliance on federal resources. There is also a history of selective default on a revolving short-term bank credit in 2013. At the same time, it shows deficit balances and a volatile liquidity position. With regard to the Bansi loan 14, The ratification of its rating contemplates the favorable debt service coverage presented in the structure. The natural credit coverage from July 2014 to December 2016 was 4.8 times (x), while the minimum coverage was 3.6x. Fitch considers the Municipality's DDLP as low and its sustainability as weak, in relation to its financial capacity. In June 2014, Guadalupe contracted a financing with Bansi for MXN180 million and a 12-year term that affected 50% of the General Fund of Participations. At the close of 2016, the balance of this loan is MXN177 million, representing 0.37x the IFOs of the entity; (GMF in BBs: 0.30x), adequate proportion for municipal finances and their qualification level. In 2016 the debt sustainability indicator was greater than 100% of domestic savings (AI; Free flow for the service of debt or make investment) of the entity, being one of the main limitations of the qualification of Guadalupe. Administrative and financial practices have improved over the past, although they are still considered non-institutional over time. After the default on a short-term credit in 2013, the Municipality has not resorted to the use of short-term loans and has requested advance payments in manageable amounts. In 2016, the Municipality managed to reduce the non-bank liabilities from MXN133 million to MXN93 million, thanks to the settlement of arrears and with Conagua. With respect to current current liabilities (suppliers and contractors), this is adequate since Guadalupe has generated sufficient liquidity for its payment in recent years. With respect to financial performance, Guadalupe presented total revenues of MXN586 million in 2016. Of these, 22% represent own revenues (BBs: 16.8%) and the rest of the federal and state revenues, which were similar to previous years. In taxes, the property amounted to MXN27 million, remaining practically equal to 2015. Although the taxpayer base is considered narrow, the Municipality has improved the collection of own revenues through better collection policies. The operational expenditure (GO, current expenditure plus unlabeled transfers) of Guadeloupe is high. It amounted to MXN462 million in 2016 and accounted for 97.4% of IFOs, which compares unfavorably with the GMF of 89.2% for IFOs. Likewise, it has been increasing during the last five fiscal years, represented 87. 2% IFOs in 2012. From 2012 to 2016, the GO had an average annual growth rate (tmac) of 12% and that of the IFOs was 9%. The IIA of the entity has been volatile and very limited during the last 5 years; However, Fitch expects to be sufficient in relation to the long-term financial obligations in the following years. The foregoing, as long as the new administration maintains the policies of containment of GO and increase of own income. In 2016 it stood at 2.6% of the IFOs (5.4% in 2015), which is higher than the median of the BBs rating range of 1.1%. Regarding the obligations for pensions and retirement, Guadalupe makes regular contributions to the IMSS and to the state agency ISSSTEZAC, in charge of the social provision to the workers of the Municipality. Thus, These obligations do not represent a direct contingency in municipal finances. To date, the Municipality does not register pensioners or retirees. Water, sewage and drainage services are provided by the Zacatecas Inter-Municipal Water and Sewerage Board (JIAPAZ), which operates in four municipalities in the region. Although the statutes mark the agency as intermunicipal, the State exerts a high influence on its operation, supports economically through the State Commission of Drinking Water and Sewage of Zacatecas (CEAPA) and has direct interference in the designation of the organization chart board. Guadalupe does not make transfers for the operation of the agency, so it does not currently represent a direct contingency for the entity. SENSITIVITY OF RATINGS Moderate debt and sustainability indicators, as well as a consistent increase in AI generation and adequate and less volatile liquidity levels that compare satisfactorily in the BBBs range, could improve the rating. On the other hand, the continuity in the deterioration in the generation of AI, as well as an increase in both short- and long-term debt that affect leverage and sustainability indicators, would put the rating or its outlook down. As regards the rating of the Bansi 14 credit, it is closely linked to that of Guadalupe, in accordance with Fitch's methodology. So an adjustment in the rating of the entity could be reflected directly and in the same sense in the credit. Failure to comply with the obligations set forth in the documents of the transaction or any other deemed to increase the risk could lead to a downward adjustment in the rating. OTHON P. BLANCO: Fitch Ratifies BB+ Credit Quality Rating --------------------------------------------------------- Fitch Ratings ratified the credit quality rating of the municipality of Othon P. Blanco (Chetumal), Quintana Roo in 'BB + (mex)'. The credit outlook is stable. In addition, it ratified the qualification of 'A- (mex) vra' corresponding to a bank financing contracted by the Municipality with Interactions in 2015 (Interacciones 15) with an initial amount of MXN320 million and a balance of MXN319.9 million as of December 31 2016. KEY FACTORS OF THE QUALIFICATIONS The ratification of Chetumal's qualification is based on the strength of the collection with respect to its peers and the socio-economic profile that it occupies in the state context. On the other hand, the factors that limit the credit quality of the Municipality are the limited generation of internal savings (AI; Free flow to serve debt or make investment), high operating expenditure (GO, current expenditure plus unlabeled transfers) and reduced debt sustainability. The ratification of the Interacciones 15 rating is based on a satisfactory performance in debt service coverage, the reserve fund balance and the contracting of insurance coverage against changes in the interest rate. The issuer undertakes to renew this insurance during the life of the credit. With respect to coverages, these are favorable. On the other hand, the credit agreement defines the fulfillment of financial obligations of collection, expense and short-term financial debt to which Fitch will follow up. Fitch considers that the level of bank debt of the Municipality is moderate. At the end of 2016, Long-term debt represented 0.76 times (x) its Ordinary Tax Revenue (IFOs). According to data from the Ministry of Finance and Public Credit (SHCP), by the end of 2016 the balance of the long-term debt was MXN439.6 million. The Municipality does not have short term indebtedness. The 2017 budget does not incorporate additional indebtedness, although it is estimated that the sustainability of debt service will be under pressure. On the other hand, Chetumal has a history of non- compliance with short-term financial obligations in 2013. Fitch will follow up on short- and long-term debt policies. In 2016, the Municipality had revenues of MXN759.2 million, of which 23.8% corresponded to own revenues. This ratio is higher than that observed in the median of its rating pairs of 16.8% and is slightly below the median of the Fitch Group of Municipalities (FGM) of 24.2%. In 2016 own revenues grew 10.3% per annum, but accounted for 31.3% of IFOs, reflecting a high reliance on state and federal revenues. Although the total expenditure of the Municipality decreased 4.7% annually, current expenditure is still high. At the end of 2016, the GO grew by 0.7% per year, due to the growth of 4.1% in current expenditure, mainly due to growth in the material and supplies. As a result, the GO represented 93.8% of the IFOs, higher than the GMF median (89.2%) and lower than the median of their qualifying peers (98.9%). In 2016 the financial performance of the entity was positive. The AI level was MXN35.6 million or 6.2% of the IFOs, which compares negatively with the GMF median (10.7%) but is higher than its rating pairs (1.1%). In 2016, Chetumal's current liabilities decreased slightly compared to 2015, however, it still represents 70 days of primary expenditure, higher than the 65-day GMF median, but below the level of its 86-day rating pairs . At the end of 2016, the available cash balance was MXN39.2 million, 0.29x the PC compared to 0.45x in 2015. Fitch will follow up on the Municipality's liquidity indicators. Pensions and pensions do not represent a contingency for Chetumal as they are the direct responsibility of ISSSTE and IMSS. Regarding the potable water and sewerage service, the agency that provides this service is a decentralized state agency so its financial situation does not pose a risk to municipal finances. The Municipality is in a litigation for the concession for the installation of luminarias. Fitch will follow up on the resolution of the trial and its possible impact on municipal finances. Chetumal is located to the south of the state of Quintana Roo, concentrates the Executive and Legislative Powers to be the capital of the State as well as the education to superior level. Its economic activity focuses on trade and services. The main economic activities are tourism, aquaculture, fisheries, services, agribusiness and manufacturing. According to the Inegi intercensal survey, In 2015 the population was estimated at 224,000 inhabitants. The reduction of approximately 20,000 inhabitants compared to the Population and Housing Census 2010 is explained by Bacalar's divestiture. According to the National Population Council, Chetumal is a municipality with a "low" marginalization index and had a poverty rate of 42.9% in 2010, according to information from the National Council for the Evaluation of Social Development Policy (Coneval). SENSITIVITY OF THE RATINGS The ratings could be adjusted downwards if financial flexibility or liquidity deteriorates through a larger current liability or if the level of short and long term debt is increased. For its part, the strengthening of the IIA, The decrease in the levels of current liabilities and improvement in the municipality's liquidity levels are factors that could improve the credit quality. The Interacciones 15 credit rating is closely linked to the credit rating of the municipality of Chetumal and, according to Fitch's methodology, a change in the Municipality's rating could affect the rating of the financing in the same direction. SOYANIQUILPAN DE JUAREZ: Fitch Ratifies BB Credit Quality Rating ---------------------------------------------------------------- Fitch Ratings ratified the credit quality rating of the municipality of Soyaniquilpan de Juarez, State of Mexico, at 'BB (mex)'. The credit outlook is stable. At the same time, it ratified the specific classification of a credit that includes the long-term direct debt of the Municipality: - Credito Banobras 13 with an initial amount of MXN20.0 million and balance of MXN7.3 million as of December 31, 2016, AA + (mex) vra '. KEY FACTORS OF THE QUALIFICATIONS Among the main factors that support the qualification of the municipality of Soyaniquilpan de Ju†rez are: the low level of long term indebtedness with good terms and conditions, absence of social security contingencies, A strengthening of the liquidity position mainly in the reduction of non-bank liability levels. On the other hand, among the limitations of the qualification are: a low revenue strength due to the socioeconomic profile of the Municipality as well as an operational expense (GO, current expenditure plus unlabeled transfers), volatile financial flexibility and a quality deficiency Financial accounting information. Regarding the Long-term Direct Debt (DDLP), it remains at low levels of indebtedness, since at the close of 2016 it amounted to MXN7.3 million, which represented 0.16 times (x) Ordinary Tax Revenue (IFOs) Or disposable income). The DDLP is made up of the loan contracted at the end of 2013 under the auspices of the Special Program of Financial Support (PEAF) of the State Fund for Municipal Strengthening (FEFOM), a program focused on financial sanitation. It should be noted that the PEAF establishes financial discipline guidelines for each of the municipalities participating in the program. Failure to comply with the commitments made would be making Fefom withholdings to make prepayments to the outstanding credit balance, which has happened twice since accession. The first was in November 2015 when a prepayment was made for MXN6.9 million and the second was for MXN4.6 million in August 2016. As a result, the unpaid credit balance has decreased significantly in the last 2 years. Based on fiscal year 2016 information, Fitch estimates that Soyaniquilpan de Juarez could partially meet PEAF's financial commitments. Therefore, the agency will follow up on the opinion and resolution of the Technical Committee. On the other hand, the credit has a coverage agreement (cap) that is about to expire. Management is seeking to renew this instrument, Fitch will follow up given the increase in the benchmark interest rate. The rating ratification action of the Banobras 13 credit is based on the adequate performance of the debt service (interest and capital) by observing an average monthly coverage of 7.2x and 10.2x by including the reserve fund. In 2016, the Municipality had total revenues (IT) of MXN114.6 million, which represents an increase of 15. 3% compared to the year 2015. Of these revenues, 3.9% were own income (IP), which is lower than the median of the Fitch Group of Municipalities (GMF, 24.2%). This reflects a limited economic base of taxpayers that relates to the size of the Municipality. However, the administration renewed the agreement with the Government of the State of Mexico [A + (mex)] for the next 5 years to receive support and training in both collection and cadastre. Therefore, the IPs could be benefited in the following years, Fitch will follow up the tax and fiscal performance. In particular, IFOs totaled MXN44.9 million at the close of 2016. This represented an annual increase of 5.5%, with an average annual growth rate (tmac) in the period from 2012 to 2016 of 2.8%. The increase in the IFOs was mainly due to the growth in shareholdings; At the close of 2016, MXN2.1 million of the Income Tax (ISR) actually received was received. On the other hand, current expenditure (GC) has remained stable and decreased 1.2% over 2015; Reached MXN39 million. Although the GO had a decrease with respect to IFOs, it still consumes almost all of its IFOs (98.7%, 2016), which is in line with that observed in the median of its level of qualification (BBs, 98.9%), . The municipality will implement new spending control policies among them are: eliminating the gratifications, austerity in the salaries of new entry workers, And renew the agreement to the Municipal Financial Support Fund (savings fund) that helps to mitigate liquidity pressures for end-of-year expenditures. At the close of 2016, domestic savings (IIA) were slightly positive; Amounted to MXN0.6 million. Fitch believes that this limits and puts pressure on municipal finances since, although most of the investment is done with resources tagged, the Municipality will require available cash to cover capital expenditure. At the end of 2016, the Municipality presents the financial statements according to the guidelines of the National Accounting Harmonization Council (CONAC), but with inconsistency in accounting records. Fitch will monitor the progress of the Municipality in this limitation. By the end of 2016, the total investment of the Municipality amounted to MXN33. 6 million which represented 42.7% of total expenditure, a share that is above that observed in the GMF (GMF, 23.2%). It is worth noting that this investment was financed primarily with resources from the different orders of government. Among the main investment projects in the last year in the community are the rehabilitation of the Boulevard in the municipal head, construction and paving of roads to communities of the same Municipality, and the rehabilitation of drinking water in Zaragoza and Loma del Perdon. By the end of 2016, Soyaniquilpan de Juarez presented an improvement in its liquidity levels in relation to liquid cash as well as a decrease in the levels of current liabilities. Regarding cash, closed with a cash of MXN9.6 million which represented 8.4% of IT, Portion that is above what is observed with respect to its rating level (BBs, 5.1%); Covers 1.7x the PC. On the other hand, there was a decrease in the PC, since it decreased MXN9.1 million compared to 2015; That is, closed at MXN5.6 million. The day-of- expenditure indicator amounted to 26 days spent, which is below what was observed with the GMF (65 days spent). In terms of social security, the Social Security Institute of the State of Mexico and Municipalities (ISSEMYM) is responsible for covering pension and retirement obligations, as well as providing medical services to workers of the entity, the municipality is aware of His contributions to the institute. On the other hand, The Municipality does not have a decentralized water agency which represents a direct contingency for municipal finances, currently does not have a plan to create a decentralized agency for which Fitch will follow up the issue because it could pressure municipal finances. Soyaniquilpan de Juarez is in the northern part of the State of Mexico. It borders to the south, west and north with the municipality of Jilotepec and to the east with the state of Hidalgo [A (mex)]. According to the last Intercensal Survey 2015 of the National Institute of Statistics and Geography (INEGI), the Municipality has a population of approximately 13,900. Soyaniquilpan de Juarez covers an area of 140.7km2. According to the National Population Council (Conapo), in 2015 the municipality presented a degree of average marginalization. SENSITIVITY OF THE QUALIFICATIONS The Municipality's Outlook is stable, which considers that the rating is in line with the current rating factors, however, to generate a larger and stable AI, maintain liquidity levels and decrease GO levels with respect To their IFOs could lead to a rating rise. Conversely, a significant increase in long-term debt levels or non-bank liabilities could lead to a decline in the entity's rating. Regarding the Banobras 13 Financing, according to Fitch's methodology, changes in the credit quality of the State of Mexico could affect the rating of the financing in the same direction as it is linked to the Fefom structure. =============================== T R I N I D A D & T O B A G O =============================== DIGICEL GROUP: No Decision Yet on T&T's Operations -------------------------------------------------- Trinidad Express reports that Digicel Group has not made a decision with regards to the restructuring of its operations in Trinidad and Tobago (T&T). This was the information relayed by Digicel T&T chief executive officer John Delves to Minister of Public Administration and Communications, the Honorable Maxie Cuffie during a meeting hosted by the minister's office on March 21, according to Trinidad Express. The report notes that Mr. Cuffie took the opportunity to reassure all stakeholders that Trinidad and Tobago remains committed to an "open and free market in the telecommunications industry", in keeping with this country's obligations to the International Telecommunication Union (ITU) and the Telecommunications Act (2001). In February, it was reported that Digicel would be adopting a new organizational structure, with centralized regional hubs consisting of two in the Caribbean region, and two in the Pacific region, the report recalls. Delves said that talks on this restructuring are ongoing at an international level, and a decision is yet to be made as to the location of the Caribbean hubs. The reorganization is part of a wider Digicel 2030 plan which also includes enhancing their digital platforms and services, as well as the rollout of full LTE capabilities for a better customer experience. The report notes that Mr. Delves said Digicel remains committed to its investment in the country and to delivering the best possible service to its customers here. Mr. Delves expressed pride in Digicel's developments in TT, not only in terms of infrastructure, but its strong presence as a "good corporate citizen" through the work of the Digicel Foundation, the report relays. In response, Mr. Cuffie urged the company to "keep investing, and keep your commitments to Trinidad and Tobago," the report discloses. The report relays that Mr. Cuffie expressed the hope that Digicel would consider T&T as a possible location for one of its Caribbean hubs. He noted that such a decision will lead to job creation and boost the economy. Mr. Cuffie said that he can "only trust that any reorganizing would not affect Trinidad and Tobago particularly hard," and gave the assurance assured that Government "will continue to work with Digicel and all other telecoms partners," the report notes. In addressing Digicel's concerns about perceptions of an anti- competitive environment in the local telecommunications industry, Mr. Cuffie was firm in his reiteration that telecommunications operates under the framework of the ITU, the report says. Mr. Cuffie said the government has "drafted legislation in keeping with those commitments for liberalization, transparency and open access, and we have been consistent in our application of such". This can be placed, he said, in the context of the revised Public Procurement Act which will be fully proclaimed at at the end of this month, the report adds. TRINIDAD & TOBAGO: Chamber Upset With Imbert's Forex Plan --------------------------------------------------------- Trinidad Express reports that the Trinidad and Tobago Chamber of Commerce -- the country's biggest business group -- is disappointed with Finance Minister Colm Imbert's statement on access to foreign exchange. The chamber believes this could be tantamount to exchange controls, according to Trinidad Express. In a statement the chamber said it "appreciates that the job of the Minister of Finance is a very difficult one -- and more so in challenging times. We accept fully that he would be constantly searching for solutions to the many problems that confront us -- including the issue of foreign exchange. For this reason, we believe the time has come for bold initiatives," the report relays. But it noted: "The T&T Chamber wishes to express its disappointment with the Government's announcement that there might be a return to what would, in effect, be a regime of exchange controls. As laudable as the Honorable Minister's objective might appear to be, if he fails to change the underlying management of the exchange rate, such a measure, as proposed, would further decrease the amount of foreign exchange available to other key sectors and industries in our country," notes the report. The report says Mr. Imbert told reporters at the post-Cabinet press briefing in Port of Spain that Government had to start focusing away from entities that simply imported manufactured goods and thereby don't really create any jobs towards assisting local manufacturers who were exporting goods to Central America. ". . . . In fact, it is one of the things we are looking at in terms of the foreign exchange system, whether the minister should exercise his authority under the Exchange Control Act to direct foreign exchange towards manufacturing as opposed to imports and I can tell you it's something we are looking at very seriously and a statement will be made about that in the near future," Mr. Imbert said, the report notes. The chamber said: "Government can be assured that numerous other groups which regard their businesses as just as significant as the manufacturing sector, will make equal or superior claims for access of foreign exchange. We fully agree that Government policy should seek to encourage the growth of the export business for manufacturers; however, it must not be done at the expense of providers of services," the report discloses. It noted: "Ironically, a more dynamic and proactive management of the exchange rate would have achieved this. Better management of the exchange rate would have permitted the TT dollar to find its right balance. If this flexibility is not permitted and instead exchange controls are implemented, this could be followed by a deep devaluation of the TT dollar," the report relays. The chamber said Mr. Imbert might wish to consider the impact of his statements on the foreign exchange markets, notes the report. "The T&T Chamber therefore urges the minister to engage with all stakeholders before finalizing the new arrangements as outlined," it added, the report discloses. ================= V E N E Z U E L A ================= VENEZUELA: Group of Nations Urges Country to Return to Democracy ---------------------------------------------------------------- David Luhnow and Jose De Cordoba at The Wall Street Journal report that the U.S., Canada and 12 of Latin America's leading nations called on Venezuela's government of President Nicolas Maduro to release political prisoners and take other steps to return to full democracy, an unprecedented show of unity against the oil-rich regime. The 14 nations, which included Mexico, Brazil and Argentina, issued a joint statement calling on Mr. Maduro's government to return full powers to Venezuela's opposition-dominated National Assembly, which has repeatedly seen its decisions ignored by the government or overturned by pro-government courts, according to the WSJ. It also called on Venezuela to hold regional elections that were scheduled for last year but were postponed by the government, which was losing badly in polls, the report notes. "We consider it urgent to address as a matter of priority the release of political prisoners, the recognition of the legitimacy of the National Assembly's decisions as provided in the Constitution and the establishment of an electoral calendar that includes the postponed elections," said the statement, signed by the U.S., Canada, Brazil, Mexico, Argentina, Chile, Peru, Colombia, Uruguay, Paraguay, Guatemala, Honduras, Costa Rica and Panama, the report relays. The unusual joint statement reflects growing impatience in the region with the deepening crisis in Venezuela, the report notes. The country is gripped by the worst economic collapse in Latin America in recent decades, the report discloses. WSJ relays that Mr. Maduro's government has launched a broad crackdown against the opposition, jailing political rivals like opposition leader Leopoldo Lopez. The government also blocked an opposition-led recall referendum on the president, even though the opposition had taken all the legal steps to holding the vote, says the report. Putting pressure on Mr. Maduro is a big shift for the region, where most countries have long shied away from interfering in each other's internal affairs, WSJ says. "It's an encouraging development," the report quoted Michael Shifter, president of the Inter-American Dialogue, a Washington- based think tank, as saying. "It's a very powerful coalition of nations in the hemisphere and ratchets up the pressure on Maduro to negotiate seriously." The statement was a response to a recent report by the secretary- general of the Organization of the American States, Luis Almagro, to get the 34 member nations of the hemispheric body to suspend Venezuela within a month if it doesn't take steps such as freeing political prisoners, the report relays. The 14 nations said that they supported diplomacy and dialogue as the right path to solve Venezuela's problems, the report notes. But they said that suspending Venezuela out of the OAS was "a last resort," and that Venezuela should be given a reasonable time to respond to the demands. Still, the nations signaled that they wouldn't wait indefinitely, WSJ notes. "We will review the progress in addressing these challenges over the coming weeks as we consider next steps," the joint statement said, WSJ relates. Suspension or expulsion from the OAS -- still a long shot -- would have little economic impact on Venezuela at present, but such a public shaming would be a blow to the regime, which prides itself as being an important player on the world stage, the report relays. The report discloses that Mexican Foreign Minister Luis Videgaray said the countries that signed the statement would attempt to get it passed as a resolution at the OAS, where it would need at least 18 countries to come to a vote and two-thirds support to pass. In an interview, he said getting rid of the one-month time limit was done in the hope of getting more countries to back the resolution, WSJ says. The pressure on Venezuela reflects changing political dynamics in Latin America, where a string of once-populist, leftist governments have been thrown out of power, the report relays. Countries such as Argentina, Brazil and Peru that were friendly to Venezuela have moved toward the center-right, the report notes. And elections in Ecuador next month could cause a shift there, too. Venezuelan Foreign Minister Delcy Rodriguez, in a series of messages on her official Twitter account, accused the U.S. government of orchestrating an attack on Venezuela, according to WSJ. "What is the purpose here? Assault Venezuela? We will denounce these actions country by country," she wrote. She also accused Mexico's Mr. Videgaray, who led the diplomacy in Latin America, of being "insolent" and "servile," notes the report. State Department spokesman Mark Toner said the U.S. shares the concerns about Venezuela laid out in the OAS secretary-general's report, which said Venezuela was in violation of the body's democratic principles, the report discloses. "We're not pushing for Venezuela's expulsion from the OAS at this time, however we do think that the OAS is the appropriate venue to deal with the ongoing situation in Venezuela," she added, notes WSJ. As reported by The Troubled Company Reporter-Latin America S&P Global Ratings, on Feb. 28, 2017, affirmed its 'CCC' long-term foreign and local currency sovereign credit ratings on the Bolivarian Republic of Venezuela. The outlook on both long-term ratings remains negative. S&P also affirmed its 'C' short-term foreign and local currency sovereign ratings. In addition, S&P affirmed its 'CCC' transfer and convertibility assessment on the sovereign. *********** 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 * * *