TCRLA_Public/020712.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

           Friday, July 12 2002, Vol. 3, Issue 137

                           Headlines


A R G E N T I N A

PEREZ COMPANC: Extends Note Exchange Date, Tender Nears 92%
REPSOL YPF: Petrobras Denies Interest In YPF Assets
STEWART ENTERPRISES: To Sell Argentine Unit This Year


B R A Z I L

CSN: Moody's Confirms B1 Global Local Currency; Outlook Neg.
INTECOM: Unfavorable E-Commerce Results Lead To Closure
TELEGLOBE: SkyOnline To Acquire LatAm Data, Internet Operations


C H I L E

ENERSIS: Shares Down on Possible Argentine Unit Default
MADECO: Shareholders Approve $90 Equity Offering
MADECO: Corning Looks To End Brazilian Joint Venture Partnership


E C U A D O R

BANCO DEL PACIFICO: Interdin To Keep Mastercard Stake


E L   S A L V A D O R

BANCO AGRICOLA: Fitch Lowers Individual, Support Ratings


M E X I C O

AEROMEXICO/MEXICANA: Slam SCT Industry Report Findings


U R U G U A Y

ABN AMRO: Moody's Lowers Ratings; Places On Negative Outlook
ANCAP: Moody's Downgrades Issuer Rating To B1
BANCO A.C.A.C.: Moody's Reduces Foreign Currency Deposit Ratings
BANCO COMERCIAL: Moody's Downgrades Foreign Currency Debt Ratings
BANCO DE MONTEVIDEO: Moody's Cuts Foreign Deposit Ratings
BANCO NAZIONALE: Foreign Currency Deposit Ratings Drop to B3
BANCO SANTANDER: Moody's Lowers Currency Deposit Ratings To B3
BANKBOSTON: Moody's Cuts Long-term Foreign Currency Deposits
LLOYDS TSB: Foreign Currency Deposit Ratings Downgraded To B3


     - - - - - - - - - -

=================
A R G E N T I N A
=================

PEREZ COMPANC: Extends Note Exchange Date, Tender Nears 92%
-----------------------------------------------------------
Pecom Energ¡a S.A. (Buenos Aires: PECO) announced the Expiration
Date of the exchange offer on its 7 7/8% Notes due 2005, 9% Notes
due 2007, 9% Notes due 2009 and 81/8% Notes due 2010 (together,
the "New Notes") for any and all outstanding 7 7/8% Notes due
2002, 9% Notes due 2004, 9% Notes due 2006 and 8 1/8% Notes due
2007 (together, the "Existing Notes") has been extended to 12:00
p.m., New York City time, on Wednesday, July 17, 2002.

In addition, the Company announced that it had received, as of
12:00 p.m., New York City time, on July 9, 2002, tenders of
Existing Notes from noteholders equal to approximately 91.5% of
the total aggregate principal amount of the Existing Notes
outstanding.

In particular, the Company had received the following tenders of
Existing Notes:

- US$ 77,869,000 aggregate principal amount of the 2002 Existing
Notes;
- US$ 274,998,000 aggregate principal amount of the 2004 Existing
Notes;
- US$ 194,284,000 aggregate principal amount of the 2006 Existing
Notes; and
- US$ 365,406,000 aggregate principal amount of the 2007 Existing
Notes.

All other terms of the exchange offer remain in effect as set
forth in the Offering Documents.

The Company is making the exchange offer, and will issue New
Notes, in the United States only to "qualified institutional
buyers," as that term is defined in Rule 144A under the U.S.
Securities Act of 1933 (the "Securities Act"), and outside of the
United States in offshore transactions in reliance on Regulation
S under the Securities Act. The New Notes will not, upon
issuance, be registered under the Securities Act and may not be
offered or sold in the United States absent registration or an
exemption from registration.

The press release detailing the announcement appeared as a matter
of record only. Authorization for the public offering of the New
Notes has been granted by the Argentine Comisi¢n Nacional de
Valores (the "CNV") pursuant to Certificate No. 202, dated May 4,
1998, and Certificate No. 290, dated July 3, 2002. The validity
of such authorization is still subject to the completion of
certain legal formalities by the Company.

Pecom Energ¡a S.A., controlled by Perez Companc S.A., is the
largest independently owned energy company in the Latin American
region. Its business activities include oil and gas production
and transportation, refining and petrochemicals, power
generation, transmission and distribution as well as forestry
activities. Headquartered in Buenos Aires, the Company has
operations throughout Argentina, Brazil, Venezuela, Bolivia, Peru
and Ecuador.

To see financial statements:
http://bankrupt.com/misc/Perez_Companc.pdf

CONTACT:  PECOM ENERGIA S.A. DE PEREZ COMPANC S.A.
          Maipo 1 - Piso 22 - C1084ABA
          Buenos Aires, Argentina
          Phone: (54-11) 4344-6000
          Fax: (54-11) 4344-6315
          URL: http://www.pecom.com.ar


REPSOL YPF: Petrobras Denies Interest In YPF Assets
---------------------------------------------------
The head of the Brazilian oil giant Petroleo Brasiliero
(Petrobras) said reports that it is in negotiations to buy the
Argentine asset of Spanish-Argentine oil group Repsol YPF SA are
not correct. In a Dow Jones Newswires report, Petrobras Chief
Executive Officer Francisco Gros admitted that Argentina remains
a strategic investment target, but according to the executive,
Repsol is not interested in selling its YPF assets.

Reports surfaced early this week that Petrobras was thinking of
buying Repsol-YPF's Argentine unit. The stories piqued some
analysts' interest who view the move as something that wouldn't
go over well with investors. The idea runs counter to Petrobras'
stated acquisition strategy and would expose the Brazilian
company to higher risk.

Moreover, they believe that YPF SA isn't for sale as a whole
company, and even if it were, Petrobras wouldn't have cash to buy
it. Market observers peg YPF's price tag at between US$4 billion
and US$7 billion.

Repsol-YPF, staggering under a debt load expected to be just
under EUR10 billion at the end of the second quarter, has been
hard hit by the meltdown of the Argentine economy where the
Company holds over half its assets. Some have speculated that
Repsol could try to exit Argentina altogether.

To see latest financial statements:
http://www.bankrupt.com/misc/Repsol.pdf

CONTACTS:  REPSOL YPF
           Alfonso Cortina De Alcocer, Chairman & CEO
           Ramon Blanco Balin, Vice Chairman
           Carmelo De Las Morenas Lopez, CFO

           Their Address:
           Paseo de la Castellana 278
           28046 Madrid, Spain
           Phone   +34 91 348 81 00
           Home Page: http://www.repsol.com
           or
           Av. Roque S enz Pe a, 777.
           C.P 1364. Buenos Aires
           Argentina


STEWART ENTERPRISES: To Sell Argentine Unit This Year
-----------------------------------------------------
Metairie, Louisiana-based Stewart Enterprises Inc., an operator
of cemeteries and funeral homes, is going to sell its Argentine
unit this year, says Bloomberg. The Argentine unit is the last of
the 10 operations of Stewart Enterprises that are to be sold to
help reduce debts. Stewart Enterprises expects to fetch US$240
million to US$250 million from all of the sales.

The Company owed US$646 million at the end of last month, down
from US$946 million in October 2000, and plans to slash debt to
US$500 million by June.

Stewart Enterprises, which operates 311 funeral homes and 150
cemeteries in the U.S., went on buying sprees in the mid-1990s,
amassing debt as it businesses and entered new markets. Stewart's
bonds are rated below investment grade by Moody's Investors
Service and Standard & Poor's.

To see latest financial statements:
http://bankrupt.com/misc/Stewart_Enterprises.txt

CONTACT:  STEWART ENTERPRISES INC., Metairie
          William E. Rowe, 504/837-5880



===========
B R A Z I L
===========

CSN: Moody's Confirms B1 Global Local Currency; Outlook Neg.
------------------------------------------------------------
Moody's Investors Service confirmed Companhia Siderurgica
Nacional's (CSN) B1 Global Local Currency rating and the B1
senior unsecured ratings for CSN Iron, S.A., and CSN Islands
Corp, guaranteed by CSN. The ratings outlook is changed to
negative.

Moody's confirmed the ratings in consideration with CSN's
position as the leading integrated steel producer in Brazil, and
its relatively low cost production profile given the Company's
favorable access to key raw materials.

However, the rating also considers the Brazilian utility's
reliance on the Brazilian domestic markets for a majority of its
sales, earnings and cash flow generation, its high leverage and
weak interest coverage ratios, as well as the inherent cyclical
risks of the steel industry.

The outlook change to negative reflects Moody's change in
Brazil's rating outlook to negative in light of bearish investor
sentiment. This change in outlook reflects the real and
potentially lasting impact on the government debt dynamics that
can result from a sharply negative change in investor sentiment
that has emerged in recent weeks. This discernible shift in
sentiment has resulted in deterioration in the capacity of
Brazilian borrowers, including the government, to access
financial markets expect on less favorable terms.

CSN's outlook reflects the outlook for the domestic environment
in which its business is largely conducted and its ongoing
refinancing requirements, including the August 2002, US$350
million CSN Islands Corp Euronotes, in these difficult market
conditions.

Headquartered in Rio de Janeiro, Brazil, CSN has debts totaling
US$2.7 billion, 85% of which is in dollars. CSN's debt has soared
in local currency terms as the real has lost 20% against the
dollar this year, causing losses to skyrocket.

In May, CSN reported that consolidated first-quarter net losses
rose 0.6% to BRL197.8 million, or BRL2.76 per 1,000 shares,
fromBRL196.8 million, or BRL2.74 per 1,000 shares, a year ago. In
the quarter, CSN accounted for BRL329 million of deferred foreign
exchange losses, including BRL300 million related to currency
losses last year.

In a note with CSN's 2001 financial statements, Arthur Andersen
LLC said that as of Dec. 31, 2001, "the Company overvalued its
assets by BRL580 million and its profit by BRL575 million." A
year earlier, the Company overvalued assets by BRL171 million and
profit by BRL154 million, Arthur Andersen said.

Brazil's securities and exchange regulator allowed companies to
defer currency-related losses after steep declines in the real
against the dollar in 1999 and 2002. CSN is one of only a handful
of companies that utilized the accounting measure.

CONTACT:  CIA SIDERURGICA NACIONAL (CSN)
          Rua Lauro Muller 116-36 Andar, PO Box 2736
          Rio De Janeiro, Brazil, 22299-900
          Phone: 55 21 5451707
          Fax: 5521 5451529
          Home Page: http://www.csn.com.br/english/index.htm
          Contact:
          Benjamin Steinbruch, CEO (interim basis)
          Antonio Mary Ulrich, Exec. Officer - Investors
                                               Relations

          New York
          Michael J. Mulvaney
          Managing Director
          Corporate Finance
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653

          New York
          Carol Cowan
          Vice President - Senior Analyst
          Corporate Finance
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653


INTECOM: Unfavorable E-Commerce Results Lead To Closure
-------------------------------------------------------
Intecom, a Brazilian joint venture partnership between JP Morgan
and the Martins retail group, recently shuttered its business.
The Company, one of the largest logistics and transportation
companies used by major Internet portals, blamed the move on poor
results in e-commerce, as well as the departure of JP Morgan from
the partnership.

Intecom was established in 2000 offering an ambitious range of
services related to e-commerce, from financing of purchases,
storage, stock management and delivery. JP Morgan reportedly
invested US$5 million in the venture while Martins invested US$25
million.

Intecom's closure leaves clients, like Pao de Acucar and
Boticario scrambling to find new means of delivering merchandise
to their clients.


TELEGLOBE: SkyOnline To Acquire LatAm Data, Internet Operations
---------------------------------------------------------------
Continuing its aggressive expansion in Latin America, SkyOnline,
Inc. (http://www.skyonline.net),a telecommunications/value-added
services provider with headquarters in the United States,
announced Wednesday it has entered into an agreement to acquire
Teleglobe Inc.'s Data and Internet Operations in Latin America.
SkyOnline will immediately step into a management role with
respect to these operations, pending the necessary regulatory and
court approvals to complete the transaction.

With hundreds of customers in the major markets (Argentina,
Brazil, Chile, Colombia, El Salvador, Mexico and Panama),
Teleglobe's Operations will enhance SkyOnline's ability to
provide Internet, data, video and IP value added services to
medium and large corporations, carriers and Internet Service
Providers throughout the region.

"We are delighted to welcome Teleglobe's Latin American
operations to the SkyOnline family of companies," said Claude
Burgio, Chairman and CEO of SkyOnline, Inc. "We are committed to
increasing the portfolio of available services, and to further
expanding our presence in Latin America" added Burgio.

John Brunette, CEO of Teleglobe said: "This transaction has been
designed to provide for continued service to our Latin American
customers. We look forward to working with SkyOnline to
accomplish a smooth transition and to continue to meet the needs
of our customers."

About SkyOnline, Inc.

Headquartered in Virginia, U.S.A., SkyOnline, Inc., is an
integrated telecommunications solutions provider. SkyOnline's
investors include Suez, (http://www.suez.com)a global water,
energy and services business with significant operations in Latin
America, N.I.T., a Luxemburg-based private equity fund
specializing in Telecom and Media, and Pequot Capital
(http://www.pequotcap.com),a private equity fund.

SkyOnline's offerings address the growing need for cost-
effective, high- quality data, voice and Internet services.
SkyOnline also offers value-added services to small- and medium-
size enterprises including dedicated access, Web design, e-mail,
hosting, virtual private networks (VPN) and e-commerce enablers.
SkyOnline owns and operates Netizen, one of Argentina's fastest
growing ISP and value-added services companies. Fixed-station
satellite-based telecommunications services are provided as well
in Venezuela, Mexico and Guatemala.

CONTACT:  Richard Estevez, Vice-President
          SkyOnline Corporate Development
          Phone: +1-571-633-6435
          E-mail: info@skyonline.net
          Home Page: http://www.skyonline.net


=========
C H I L E
=========

ENERSIS: Shares Down on Possible Argentine Unit Default
--------------------------------------------------------
After admitting that a default by an Argentine unit might trigger
early payment on its own financial obligations, Enersis saw its
shares drop to their lowest level in at least eight years,
reports Bloomberg.

The stock fell 4.4% Wednesday to CLP76, its lowest level since
Bloomberg began tracking it in 1994, extending its decline for
the year to 57%. The stock dipped after Enersis stated in a
recent filing with U.S. regulators that it may have to pay debt
early in the event that its Argentine unit Edesur SA misses a
payment. Enersis, a unit of Spain's Endesa SA, however, didn't
specify the amounts of the debt involved.

According to a report by Bear Stearns, a default by Edesur on
US$180 million in debt could accelerate payment of US$1.5 billion
in Enersis' bank loans. Spanish banks Banco Bilbao Vizcaya
Argentaria SA and Banco Santander Central Hispano SA reportedly
holds US$1.3 billion of the amount, of which almost US$500
million is due next year and the rest in 2004, the report said.

The report suggested that it was "very unlikely" that the two
Spanish banks would force Enersis to pay the debt early in the
event of a default and that Enersis doesn't guarantee Edesur's
debt.

Speculation that Edesur won't be able to meet its debt
obligations were heightened after the Buenos Aires distributor
registered a decline in its first-quarter earnings, to US$3
million from US$25 million a year earlier. The unit's earnings
slumped after Argentina devalued its currency in January and
switched energy prices to pesos from dollars.

CONTACT:  EDESUR S.A.
          Gte. Gral.: Ing. Rafael Fernandez Morande
          San Jos, 140, 3o P
          Capital Federal 1076
          Argentina
          Home Page: www.edesur.com.ar
          Tel.: 4370-3700/4370-3370
          Fax:4381-0708

          ENERSIS S.A.
          Santo Domingo 789
          Santiago, Chile
          Phone: (562) 688-6840
          www.enersis.cl
          Contacts:
          Alfredo Llorente, Chairman
          Enrique Garcia, CEO
          Rafael Miranda, Vice Chairman
          Mauricio Balbontin, CFO
          Domingo Valdes, Gen. Counsel


MADECO: Shareholders Approve $90 Equity Offering
-------------------------------------------------
Financially strapped Chilean industrial conglomerate Madeco SA
got the OK from its shareholders to sell US$90 million of stock
by the end of September as part of a move to restructure its
finances.

According to Bloomberg, Madeco, which is controlled by Chilean
holding company Quinenco SA, plans to use US$60 million from the
sale to pay half the US$120-million it owes 14 banks, including
Citibank NA, as part of negotiations to allow it to pay off the
rest later. Salomon Smith Barney has been advising the Company on
the plan.

"We have to lower our debt level," Madeco Chief Executive Officer
Albert Cussen said.

Madeco, which has about US$325 million of debt, is looking to
reduce interest expenses after revenues slumped in Argentina on
currency devaluation, as well as the deepening economic recession
there, Cussen suggested. Madeco posted a first-quarter loss of
CLP10.22 billion (US$1=CLP699.40), after the company closed down
part of its Argentina-based operations in an attempt to minimize
further damage from the country's economic crisis.

Without the funds, Madeco may default on all or part of its debt,
the company said in its annual report filed with the U.S.
Securities and Exchange Commission.

To see latest financial statements:
http://bankrupt.com/misc/Madeco.doc

CONTACT:  MADECO S.A.
          Ureta Cox, 930
          San Miguel, Santiago, Chile
          Phone: 56-2 5201461
          Fax: 56-2 5516413
          E-mail: mfl@madeco.cl
          Home Page: http://www.madeco.cl
          Contacts:
          Oscar Ruiz-Tagle Humeres, Chairman
          Albert Cussen Mackenna, Chief Executive Officer

          Investor Relations
          Phone: 56-2 5201380
          Fax:   56-2 5201545
          E-mail: ir@madeco.cl

          SALOMON SMITH BARNEY HOLDINGS INC.
          388 Greenwich St.
          New York, NY 10013
          Phone: 212-816-6000
          Fax: 212-793-9086
          Home Page: http://www.smithbarney.com
          Contact:
          Michael A. Carpenter, Chairman and CEO
          Michael J. Day, EVP and Controller


MADECO: Corning Looks To End Brazilian Joint Venture Partnership
----------------------------------------------------------------
Madeco SA said Corning Inc. wants to sever its joint venture
relationship with the Chilean copper wire maker in the Brazilian
fiber optic maker Optel Ltda. after demand slumped, Bloomberg
reports, citing Madeco's June 24 filing with the SEC. Optel
helped fuel Madeco's revenue growth in Brazil last year.

Madeco said it would file arbitration to resolve the dispute.
Madeco Chief Executive Officer Albert Cussen said he expects an
eventual recovery in sales for fiber optic cable.

On Tuesday, Madeco received notification from the New York Stock
Exchange (NYSE) that its American Depository Receipt (ADR) failed
to comply with listing requirements. Its ADR has fallen below the
US$1.00 for 30 straight days, which can result in a delisting.

The NYSE gave Madeco six months to buoy its 30-day share price
average to more than US$1.00. Because shareholders are to convene
for this matter, the NYSE will wait for the next general
shareholder meeting.



=============
E C U A D O R
=============

BANCO DEL PACIFICO: Interdin To Keep Mastercard Stake
-------------------------------------------------------------
Spanish consulting company Interdin & Ahead, which manages
Ecuadorian bank Banco del Pacifico, gave up selling the bank's
56% stake of the credit cards manager Mastercard and the US
subsidiary Pacific National Bank. Interdin expects Mastercard to
generate profits of US$2 million in 2002, and Pacific National
US$1.3 million.

The decision to keep the investments came as Interdin continues
to review its 2002 goals for Pacifico. The management is also
firing 546 people and will fix the ideal labor force of 1500
employees. Furthermore, Interdin also aims to pay the Ecuadorian
state back the US$121-million it injected into Pacifico.

Pacifico, which fell into state hands in 1999 during a sector
crisis and whose management was subsequently taken over by
Interdin, is scheduled to go on the block by the end of the year.
But, due to Argentina's ongoing financial crisis and Ecuador's
elections this year, investors are wary of entering the poor
Andean nation and suspect the sale may be postponed.

Pacifico, however, is slowly showing signs of recovery. The
company reported a US$21.9-million profit in the first half of
2002, compared to a loss of US$35 million in the first half of
2001. As of April 30, the bank had US$603.7 million in assets or
10.9% of all bank assets in Ecuador.

CONTACTS:  BANCO DEL PACIFICO
           Ec. Javier S nchez Pulley, Presidente del Directorio
           Dr. Felix Herrero Bachmeier, Presidente Ejecutivo

           P. Ycasa 200 GUAYAQUIL Ecuador
           Tel:  + 593 566010
           Fax:  + 593 564636



=====================
E L   S A L V A D O R
=====================

BANCO AGRICOLA: Fitch Lowers Individual, Support Ratings
--------------------------------------------------------
Fitch Ratings, the international rating agency, has downgraded
the individual rating of Banco Agricola (Agricola) to 'D' from
'C/D'. The support rating was recently altered to '5T' from '4T'
following the change in Fitch's view on support for El Salvador's
banks. Agricola's other ratings have been affirmed at Short-term
'B' and Long-Term 'BB+'. The Rating Outlook on the long-term
rating remains Stable.

The change in the Individual rating reflects the weaker asset
quality and pressure on earnings, both of which have suffered
from several external factors over the last year: the adoption of
the USD a legal tender has compressed margins while eroding FX-
based income; credit growth stagnated following the catastrophic
earthquakes in early 2001, which also affected the timely
repayment of loans across all sectors of the economy. As such,
Agricola's impaired loans stood at 3.16% of total loans at end-
2001 but these should be considered within the context of a
US$98.4 million (or 5.76% of gross loans at end-2001) asset-swap
that was concluded at year-end under a State incentive, whereby
bank loans to the ailing coffee-sector were exchanged for 20-year
bonds. The prior has not only accentuated asset-liability
maturity mismatches on Agricola's balance sheet but also inflates
the bank's liquidity; these bonds have yet to be issued in the
local market, for which a secondary market is unlikely to develop
in the near-term. Moreover, all participating banks in this
scheme will have to write-down the value of their investment
portfolios in line with any losses in the value of the original
loans, though this process clearly allows for the deferral of
provisions.

Nevertheless, Fitch estimates that Agricola's provisioning costs
will remain fairly high going forward, given the level of
foreclosed and restructured loans the bank reported at year-end
(3.6% and 5.93% of gross loans respectively) while the local
economy has yet to show signs of a robust recovery. Agricola's
capitalization, which Fitch already viewed as thin given the
operating environment of a sub-investment grade economy, should
therefore be augmented to provide a cushion against any future
problems and in order to support asset growth. The bank's risk-
weighed capital adequacy ratio stood at 11.2% at year-end 2001.

The 'BB+' long-term, foreign currency debt rating and Stable
Outlook reflect Fitch's opinion that despite the current
difficulties the bank faces, Agricola can preserve its leadership
position in the local industry, continue to reap unique benefits
from its dominant retail deposit franchise, while its senior
management has a track-record in stirring the bank through the
downcycles of the local economy and catastrophes that occurred
previously in this region. With nearly one-third of the system's
retail deposits, Agricola consolidated further its local market
position in 2001 after acquiring US$149.7 million in assets from
Banco Capital, another small local bank.

Fitch clarified its ratings as follows:

Fitch's Individual ratings assess how a bank would be viewed if
it were entirely independent and could not rely on external
support. Its Support ratings deal with the question of whether a
bank would receive support from its owners or from the state if
it were to get into difficulty. These ratings are not debt
ratings but rather, respectively, an assessment of the intrinsic
strength of a bank and of any level of outside support that may,
or may not, be available to it. A Support rating qualified by the
suffix 'T' indicates significant existing or potential transfer
risk of economic and/or political origin that might prevent
support for foreign currency creditors.

CONTACT:  FITCH RATINGS
          Agatha Pontiki, 1-212-908-0306
          Gustavo Lopez-Cortes, 1-212-908-0853
          London Ratings Desk, +44 (0) 20 7417 6300



===========
M E X I C O
===========

AEROMEXICO/MEXICANA: Slam SCT Industry Report Findings
------------------------------------------------------
Aeromexico and Mexicana de Aviacion railed against a July 12
report by the Transport and Communications Secretariat (SCT) that
showed income from passenger traffic had increased by 30% in the
domestic industry. Contradicting the report, Mexicana de Aviacion
General Director Fernando Flores claimed that his company has not
grown and is facing a 16% drop in income.

The executive also reported a negative trend in the demand for
services and income so far has dropped by between 10% and 12%. He
also made it clear that this is not an issue particular to
Mexico, but was generalized in Europe, the United States and
Latin America.

Aeromexico and Mexicana, which together handle about 80% of the
country's flights, are currently run by Cintra, a government-
controlled holding company. The two airlines recently returned to
the auction block after the government's plan to sell the
airlines in 2000 was put off not only by the Sept. 11 event but
also by contentions from lawmakers that the companies should be
kept together.

Already, Mexico's antitrust watchdog agency, the Federal
Competition Commission (CFC), has ruled that Aeromexico and
Mexicana must be sold separately to preserve competition.

Cintra is due to announce the details of the sale process this
week. Merrill Lynch is the financial agent for the transaction
while the Mexican division of Transparencia Internacional will
oversee the sale process to ensure that it is carried out in line
with the conditions of the bidding process.

Simon Garcia Rubio, an air sector analyst, said that this could
be the moment to start the process to give the transaction the
time that will be necessary. However, Rubio said the sale would
have to be carried out in the first few months of 2003 because it
will not be easy to make a good sale at the current time.

CONTACT:  AEROMEXICO
          Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or
          mweitzman@aeromexico.com

          MEXICANA DE AVIACION
          Jenny Jenks, Marketing Director, International
          Division of Mexicana Airlines, +1-210-491-9764, or
          ennyjenks@mexicana.com

          CINTRA
          Xola 535, Piso 16, Col. del Valle
          03100 M,xico, D.F., Mexico
          Phone: +52-5-448-8050
          Fax: +52-5-448-8055
          Contacts:
          Jaime Corredor Esnaola, Chairman
          Juan Dez-Canedo Ruiz, CEO
          Rodrigo Ocejo Rojo, CFO
                       OR
          C.P. Francisco Cuevas Feliu, Investor Relations
          Xola 535, Piso 16
          Col. del Valle
          03100 M,xico, D.F.
          Tel. (52) 5 448 80 50
          Fax (52) 5 448 80 55
          infocintra@cintra.com.mx

          MERRILL LYNCH & CO., INC.
          World Financial Center,
          North Tower, 250 Vesey St.
          New York, NY 10281
          Phone: 212-449-1000
          Toll Free: 800-637-7455
          Home Page: http://www.merrilllynch.com
          Contact:
          David H. Komansky, Chairman and CEO
          E. Stanley O'Neal, President, COO, and Director
          Thomas H. Patrick, EVP and CFO

          MERRILL LYNCH MEXICO
          Paseo de las Palmas No. 405
          Piso 8
          Col. Lomas de Chapultepec
          11000 Mexico City, Mexico
          Phone: 5255-5201-3200
          Fax: 5255-5201-3222

          TRANSPARENCIA MEXICANA
          Dulce Olivia 71
          Colonia Villa Coyoac n
          DF, 04000
          Contact:
          Federico Reyes Heroles, President
          Eduardo A. Boh›rquez, Executive Secretary

          National Chapter
          Phone/Fax: +52-5-5668 0955
          Email: tmexican@data.net.mx
          Home Page: www.transparenciamexicana.org.mx



=============
U R U G U A Y
=============

ABN AMRO: Moody's Lowers Ratings; Places On Negative Outlook
------------------------------------------------------------
Moody's Investors Service downgraded to B3 from B1 the long-term
foreign currency deposit ratings of ABN AMRO Bank N.V.,
Montevideo Branch. The ratings were also placed on negative
outlook.

The actions followed Moody's downgrade of the Republic of
Uruguay's foreign currency country ceilings for bank deposits to
B3 from B1, with a negative outlook.

ABN AMRO BANK was established in Uruguay in 1952, as a full
service branch. Its constant growth and innovative attitude have
made it one of the major participants in the domestic market.
With 500 employees, working in 23 branches, ABN AMRO Bank has
become the foreign bank with strongest presence in Uruguay.

CONTACT:  ABN AMRO Bank N.V.
          Main Branch
          Calle Julio Herrera y Obes 1365
          Montevideo
          Uruguay
          Postal Address
          Casilla de Correo 888
          Montevideo
          Uruguay
          Phone: +598-2 9031073
          Fax    : +598-2 9009798
          Home Page: http://www.abnamro.com.uy

          New York
          Gregory W. Bauer
          Managing Director
          Financial Institutions Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653

          New York
          Jeanne Del Casino
          Vice President - Senior Analyst
          Financial Institutions Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653


ANCAP: Moody's Downgrades Issuer Rating To B1
---------------------------------------------
Moody's Investors Service downgraded the foreign currency issuer
rating of Administraci¢n Nacional de Combustibles, Alcohol y
Portland (ANCAP) to B1 from Ba2. The downgrade followed Moody's
downgrade on Uruguay's long-term foreign currency ceiling to B1
from Ba2. The rating outlook is negative.

Headquartered in Montevideo, Uruguay, the state-owned oil,
alcohol and cement company ended 2001 with US$70 million in debt,
representing 16% of the Company's capitalization. The Company is
upgrading its La Teja refinery for US$160 million and in order to
finance the project, Ancap entered into a US$115-million credit
facility, of which US$50 million has already been drawn.

Ancap is currently negotiating with its lenders for a waiver.

CONTACT:  ANCAP
          Central Administration Paysando
          s/n esq. Avenida del Libertador
          Montevideo, 11100 Uruguay
          P.O. Box 1090
          Phones: +598(2) 902 0608
                          902 3892
                          902 4192
          Fax +598(2) 902 1136 902 1642
          Telex ANCAP UY 23168
          E-mail: info@ancap.com.uy
          Home Page: www.ancap.com.uy
          Contact:
          Benito E. Pi eiro, Chief Executive Officer
          Phone +598(2) 900 2945
                +598(2) 902 0608 Ext. 2253
          Fax +598(2) 908 9188


BANCO A.C.A.C.: Moody's Reduces Foreign Currency Deposit Ratings
----------------------------------------------------------------
Moody's Investors Service downgraded to B3 from B1 the long term
foreign currency deposit ratings of Banco A.C.A.C. S.A. The
ratings were placed on negative outlook.

The actions followed Moody's downgrade of the Republic of
Uruguay's foreign currency country ceilings for bank deposits to
B3 from B1, with a negative outlook.

          New York
          Gregory W. Bauer
          Managing Director
          Financial Institutions Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653

          New York
          Jeanne Del Casino
          Vice President - Senior Analyst
          Financial Institutions Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653


BANCO COMERCIAL: Moody's Downgrades Foreign Currency Debt Ratings
-----------------------------------------------------------------
Moody's Investors Service downgraded to B3 from B1 the long-term
foreign currency deposit ratings of Banco Comercial S.A., with a
negative outlook.

The action followed Moody's downgrade of the Republic of
Uruguay's foreign currency country ceilings for bank deposits to
B3 from B1, with a negative outlook.

Moody's also downgraded to B1 from Ba3 Banco Comercial's long-
term foreign currency senior debt rating. The action followed
Moody's downgrade of Uruguay's foreign currency country ceiling
for bonds and notes to B1 from B3, with a negative outlook. The
agency also lowered Banco Comercial's long-term foreign currency
subordinated debt rating to B2 from B1.

The foreign currency deposit and debt ratings of Banco Comercial
reflect the support of the Central Bank of Uruguay. The Central
Bank recapitalized Banco Comercial in addition to the funds the
bank had received in February after the bank suffered a large
deposit loss. The bank remains open and continues to meet its
obligations.

Banco Comercial is Uruguay's largest private sector bank and the
third largest overall with US$2.3 billion in assets as of
September 30, 2001.

CONTACT:  BANCO COMERCIAL
          Cerrito No. 400,
          11100 Montevideo
          Phone: 960-394/97
          Fax: 963-569
          Home Page: www.bancocomercial.com.uy/

          New York
          Gregory W. Bauer
          Managing Director
          Financial Institutions Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653

          New York
          Jeanne Del Casino
          Vice President - Senior Analyst
          Financial Institutions Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653


BANCO DE MONTEVIDEO: Moody's Cuts Foreign Deposit Ratings
---------------------------------------------------------
Moody's Investors Service downgraded to B3 from B1 the long-term
foreign currency deposit ratings of Banco de Montevideo S.A.,
with a negative outlook.

The actions came after Moody's downgraded Republic of Uruguay's
foreign currency country ceilings for bank deposits to B3 from
B1, with a negative outlook.

Moody's also downgraded to B1 from Ba2 Banco de Montevideo's
long-term foreign currency senior debt rating. The action
followed Moody's downgrade of Uruguay's foreign currency country
ceiling for bonds and notes to B1 from B3, with a negative
outlook.

The foreign currency deposit and debt ratings of Banco de
Montevideo reflect the support of the Central Bank of Uruguay.
Montevideo's ratings incorporate the bank's intervention on June
21, 2002 by the Central Bank to facilitate its recapitalization
and to ensure that its obligations would be met. On June 28,
2002, Montevideo received some $114 million in deposits from the
government's National Development Corporation as part of the bank
recapitalization program in connection with its Memorandum of
Understanding with the IMF.

Established in 1941, Banco de Montevideo is Uruguay's second
largest domestically owned private bank, and became the third
largest private bank overall after its acquisition of Banco La
Caja Obrera in November of 2001. As of December 31, 2000,
Montevideo had US$691 million in assets, US$604 million in
deposits and US$52 million in equity.

CONTACT:  BANCO MONTEVIDEO
          Misiones
          1399 - Montevideo
          Fax: 9162880
          E-mail: info@bm.com.uy
          Home Page: http://www.bancomontevideo.com.uy
          Contact: Sr. Marcelo Pestarino, President

          New York
          Gregory W. Bauer
          Managing Director
          Financial Institutions Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653

          New York
          Jeanne Del Casino
          Vice President - Senior Analyst
          Financial Institutions Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653


BANCO NAZIONALE: Foreign Currency Deposit Ratings Drop to B3
------------------------------------------------------------
Moody's Investors Service Lowered the long-term foreign currency
deposit ratings of Banca Nazionale del Lavoro S.A. (Uruguay) to
B3 from B1, and placed the ratings on negative outlook.

The actions followed Moody's downgrade of the Republic of
Uruguay's foreign currency country ceilings for bank deposits to
B3 from B1, with a negative outlook.

Banca Nazionale del Lavoro SA ("BNLSA") is owned by Italy-based
Banca Nazionale del Lavoro. At year end-2001, preliminary
accounts showed that BNLSA had equity of US$305 million
(representing c.8% of the group's equity), and total assets of
US$3.3 billion.

CONTACT:  BANCA NAZIONALE DEL LAVORO CASA FINANCIARIA S.A.
          25 de Mayo 575
          Casilla de Correo 1454
          11000 Montevideo
          Phone: 0059 82 962030
          Fax: 0059 82 962195
          E-mail: bnl@adinet.com.uy
          Home Page: http://www.bnl.com.uy/new/

          New York
          Gregory W. Bauer
          Managing Director
          Financial Institutions Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653

          New York
          Jeanne Del Casino
          Vice President - Senior Analyst
          Financial Institutions Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653


BANCO SANTANDER: Moody's Lowers Currency Deposit Ratings To B3
--------------------------------------------------------------
Moody's Investors Service downgraded to B3 from B1 the long-term
foreign currency deposit ratings of Banco Santander, S.A.
(Uruguay), and assigned the ratings with negative outlook.

The actions followed Moody's downgrade of the Republic of
Uruguay's foreign currency country ceilings for bank deposits to
B3 from B1, with a negative outlook.

Banco Santander entered the Uruguayan financial sector in 1980.
In 1982, it acquired  "Bancos del Litoral Asociados". In 1995,
based on its favorable business position, it embarked on a period
of marked growth, leading it to become one of the benchmark
institutions of the Uruguayan banking system and creating the
foundations of what is today the Santander Group in
Uruguay. Banco Santander is among the six companies of the
Santander Group.

CONTACT:  BANCO SANTANDER
          Cerrito,449, Montevideo
          Tel. (598-2) 917 0970
          Fax (598-2)916 1110
          Home Page:  http://www.santander.com.uy/index2.asp
          International Desk (S.A.C.I.)
          Alejandro Santos Lorenzo
          Tel. (598-2) 917-0970,  915-9155
          Fax (598-2) 916-3685 anexo: 250
          E-mail: asantos@santander.com.uy

          New York
          Gregory W. Bauer
          Managing Director
          Financial Institutions Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653

          New York
          Jeanne Del Casino
          Vice President - Senior Analyst
          Financial Institutions Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653


BANKBOSTON: Moody's Cuts Long-term Foreign Currency Deposits
------------------------------------------------------------
Moody's Investors Service lowered the long-term foreign currency
deposit ratings of BankBoston, N.A. (Uruguay) to B3 from B1, and
placed the ratings on negative outlook.

The actions followed Moody's downgrade of the Republic of
Uruguay's foreign currency country ceilings for bank deposits to
B3 from B1, with a negative outlook.

Established in 1976, BankBoston Uruguay provides a broad range of
financial services to multinationals and large national
corporations, middle market companies, and small businesses. The
bank also maintains a leading market position in retail and
private banking, mortgage lending, and trade services. It is the
2nd largest private sector bank in the country. It has $890
million in assets, 15 offices, and 400 employees. It owns OCA,
the largest private label credit card issuer and consumer finance
company in the country, with 22 offices and more than 500
employees.

CONTACT:  BANKBOSTON N.A.
          Zabala 1464
          Casilla de Correo 90
          Montevideo, (11000)
          Uruguay
          Phone: 598-(2)-916-0127
          Fax: 598-(2)-916-2209
          SWIFT: FNBB UY MM
          Cable: BOSTONBANK
          Telex: BOSTON UY 22433
          Home Page:  http://www.bankboston.com.uy/

          New York
          Gregory W. Bauer
          Managing Director
          Financial Institutions Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653

          New York
          Jeanne Del Casino
          Vice President - Senior Analyst
          Financial Institutions Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653


LLOYDS TSB: Foreign Currency Deposit Ratings Downgraded To B3
-------------------------------------------------------------
Moody's Investors Service downgraded to B3 from B1 the long-term
foreign currency deposit ratings of Lloyds TSB bank plc
(Uruguay), and placed the ratings on negative outlook.

The actions followed Moody's downgrade of the Republic of
Uruguay's foreign currency country ceilings for bank deposits to
B3 from B1, with a negative outlook.

CONTACT:  LLOYDS TSB BANK PLC
          Casa Central: Zabala 1500 - Montevideo
          Phone: 916.13.70 - 916.09.76
          Fax: 916.12.62
          Telex: 26.632 - 23.761 - LOYDBK UY
          Home Page: http://www.lloydstsb.com.uy
          E-mail: lloydsm@adinet.com.uy
          Contact: Christopher David Golby, General Manager

          New York
          Gregory W. Bauer
          Managing Director
          Financial Institutions Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653

          New York
          Jeanne Del Casino
          Vice President - Senior Analyst
          Financial Institutions Group
          Moody's Investors Service
          JOURNALISTS: 212-553-0376
          SUBSCRIBERS: 212-553-1653





               ***********


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 American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Ma. Cristina Canson, Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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The TCR Latin America subscription rate is $575 per half-year,
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