/raid1/www/Hosts/bankrupt/TCRLA_Public/021115.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, November 15, 2002, Vol. 3, Issue 227

                           Headlines


A R G E N T I N A

ARGENTINE BANKS: Postpones Consumer Mortgage Payments
CENTRAL PUERTO: Losses Deepen In Unhealthy Economic Conditions


B E R M U D A

SEA CONTAINERS: Looming 2003 Debts Eclipse Improving Results
TRENWICK GROUP: Comments on Market Volume, Share Price


B O L I V I A

AES BOLIVIA: IDB Approves $40M Loan


B R A Z I L

BANCO SUDAMERIS: Unibanco Could Be Next Buyer
CSN: Announces Record Operational Results For 3Q02
CSN: Officially Terminates Negotiations With Corus
CSN: Corus Group Terminates Planned Merger With CSN
EMBRATEL PARTICIPACOES: Bank Sets Up Investment Fund
KLABIN: Government, Private Banks Provide $159M Loan
MAXBLUE: BB May Sieze Control Following An Enormous Loss


C H I L E

DISPUTADA: ExxonMobil Announces Sale To Anglo American


J A M A I C A

AIR JAMAICA: JLP Seeks Government Details for `Open Skies'
AIR JAMAICA: Founding Member Comments On Earlier Report


M E X I C O

GRUPO ELEKTRA: Moody's Cuts Credit Rating To B2
GRUPO MEXICO: S&P Lowers Asarco to 'SD' After Missed Payment
SADIA: S&P Cuts Local Currency Rating To BB-
SADIA: S&P Lowers IFC Trust Certificates to 'BB-'


T R I N I D A D   &   T O B A G O

BWIA: $13M Is Loan, Not Bail Out
BWIA: Virgin Atlantic's Ad Campaign Fuels Controversy
BWIA: Union Calls For Forensic Audit


     - - - - - - - - - -

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

ARGENTINE BANKS: Postpones Consumer Mortgage Payments
-----------------------------------------------------
Argentina's Economy Minister Roberto Lavagna said Monday that
Argentine banks have agreed to delay due dates on mortgage
payments for individuals. The payments would be postponed until
Feb. 1 next year, reports EFE News.

An earlier mandate for a grace period is set to expire Friday.
The government expects banks to submit data on mortgage-loan
default rates within 75 days.

The government refuted reports that about ARS5.21 billion
(US$1.47 billion) in mortgage loans were defaulted by
approximately 7.5 million Argentines.


CENTRAL PUERTO: Losses Deepen In Unhealthy Economic Conditions
--------------------------------------------------------------
Pesified energy rates, lower sales on the spot market, and lower
contracted sales as a result of customers not renewing contracts
under the present economic conditions pulled Argentine thermo
generator Central Puerto deeper into the red. Citing a company
statement to the Buenos Aires bourse, Business News Americas said
that the Company's net loss for the third quarter of 2002
amounted to ARS14.4 million (US$4.1mn), 55% more in peso terms
than the loss recorded in 3Q01.

Contrary to the ARS8.1-million operating profit in the third
quarter of 2001, Central Puerto recorded an operating loss of
ARS3.9 million in the equivalent period this year. The loss was
brought about by lower sales partly offset by pesified production
costs. Sales fell 37.7% to ARS67.8 million on lower energy
demand.

"Electric power demand has stopped its negative tendency,
although it did not shown signs of recovery in the third
quarter," the statement said.

Besides lower demand, Central Puerto's 3Q02 earnings were also
negatively impacted by late payments for contracted power and
spot market sales, the statement said.

Nevertheless, non-operating losses narrowed 50% to ARS9.1
million, mainly due to the peso's rising strength against the
dollar, offset by exposure to inflation and an increase in net
interest payments on dollar-denominated debts.

Central Puerto is 63.9% owned by France's TotalFinaElf, and
together with its subsidiaries has 2,165MW installed capacity,
accounting for 10% of Argentina's thermo generation.

CONTACTS:  CENTRAL PUERTO
           Jacques Chambert Loir, CEO
           2701 Avenida Tomas A Edison
           Buenos Aires, Argentina
           Phone   +54 1 317 5074
           Home Page http://www.centralpuerto.com



=============
B E R M U D A
=============

SEA CONTAINERS: Looming 2003 Debts Eclipse Improving Results
------------------------------------------------------------
Bermuda-based Sea Containers Ltd. (NYSE: SCRA and SCRB)
(www.seacontainers.com) passenger and freight transport operator,
marine container lessor and leisure industry investor, announced
Wednesday its results for the quarter and nine months ended
September 30, 2002. For the quarter, net income was $17.9 million
($0.84 per common share diluted) on revenue of $547 million,
compared with net income of $6.6 million ($0.35 per common share
diluted) on revenue of $356 million in the year earlier period.
Net income was up 173%, diluted net earnings per common share
were up 140% and revenue was up 54%.

For the nine months ended September 30, 2002 net income was $27.9
million ($1.40 per common share diluted) on revenue of $1.23
billion, compared with net income of $13.6 million ($0.73 per
common share diluted) on revenue of $974 million in the year
earlier period. Net income was up 105%, diluted earnings per
common share were up 92% and revenue was up 26%.

The company's EBITDA excluding Orient-Express Hotels Ltd. for the
quarter and nine months ended September 30, 2002 is summarized as
follows:

               $000                   quarter       nine months
Silja Oyj Abp                         26,576          53,307
Great North Eastern Railway           21,639          50,779
GE SeaCo SRL (50%)                     7,783          21,352
Other passenger transport operations  11,756          16,715
Other marine container operations     14,613          42,849
Gains on asset sales, net                205           6,523
Other income                             375           1,503

                                      82,947         193,028
Corporate Costs                        3,907          11,155
Totals                                79,040         181,873

The EBITDA in the above table is higher by $3.9 million for the
quarter and $14 million for the nine months than shown in the
company's 10Q report due to depreciation and interest on our 50%
share of GE SeaCo earnings ($3.9 million in the quarter and $7.3
million in the nine months) and 50% share of Silja earnings ($6.7
million in the nine months). The company has previously forecast
that EBITDA for the full year 2002 will exceed $200 million and
continues to believe this will be the case.

Unfortunately, GNER's large claim against Network Rail Ltd. (the
successor to Railtrack plc) is still not resolved. This claim
relates to lost revenue and extra costs in connection with the
Hatfield rail accident and other failings of Railtrack. GNER has
won arbitration awards holding Railtrack responsible for payment
of these amounts (which have been withheld by GNER from track
access and other charges) but Network Rail appealed to the Rail
Regulator. The Rail Regulator promised his ruling before Sea
Containers issued its second quarter 2002 results in August and
three further months have now elapsed without decision. Network
Rail admits it caused the revenue losses and extra costs but has
refused to accept full financial liability. Network Rail is now a
quasi-government body and the U.K. government funds all its costs
in excess of income from the train operators. Despite the delay,
Sea Containers still feels the dispute will be settled on a
satisfactory basis.

GNER's operating profits for the third quarter were $19.4 million
compared with $15.1 million in the prior year quarter. Passenger
volumes were about 4% less than in the third quarter of 2000 (the
pre-Hatfield reference year) while revenue was slightly greater.
The third quarter of 2001 was impacted by the lingering effects
of speed restrictions imposed by Railtrack, so the third quarter
of 2002 reflects an improving trend consistent with less such
restrictions.

Silja Oyj Abp, now 100% owned, is having an excellent year.
Operating profits for the third quarter were $19.3 million
compared with $10 million in the year earlier period when Sea
Containers only owned 50% of the company. The Russian government
withdrew visa privileges for the company's Silja Opera cruise
ship at the end of August as part of a political maneuver to put
pressure on Baltic States to allow access without visas for
Russians overland to Kaliningrad. This necessitated a last minute
re-routing of the vessel and revenue was lost. It appears that
the Kaliningrad problem has now been resolved so hopefully the
ship will shortly be granted visa privileges for operations to
St. Petersburg. The larger m.v. Sky Wind was introduced into the
SeaWind line on Turku/Stockholm on October 10th and the vessel it
replaced, m.v. StarWind, started a new freight service on the
Helsinki/Tallinn route immediately thereafter.

Other passenger transport operations produced improvements from
the Isle of Man Steam Packet Company, Hoverspeed in the English
Channel, SeaStreak in New York, and SNAV-SeaCat in the Adriatic
but Belfast based services worsened due to no-frills airline
competition and technical problems.

GE SeaCo SRL's operating profits increased to $5.2 million in the
quarter compared with $4.5 million in the year earlier period.
However, results from the "pool" and "managed" containers and
depots and factories owned by Sea Containers worsened from $2.9
million in the third quarter of 2001 to $1.5 million in the third
quarter of 2002. This worsening conceals an enormous increase in
container demand and lease-outs but the costs of positioning
containers to demand locations and repairing them there before
lease have temporarily reduced profits. The GE SeaCo owned fleet
is 98% on lease compared with 95% at the beginning of the year.
The "pool" and "managed" fleets are 79% on lease compared with
72% at the beginning of the year. Lease rates for standard dry
cargo containers placed on hire in the third quarter have
increased by 20% over the previous quarter. It now appears that
GE SeaCo will take delivery of $150 million of new containers
against firm lease commitments in 2002.

Orient-Express Hotels Ltd., in which the company has a 57% equity
interest, reported third quarter 2002 operating profits of $15.8
million compared with $13.5 million in the year earlier period
which was impacted by the September 11th terrorist attacks.

Net finance costs in the third quarter of 2002 were down $1.3
million from the prior year period, to $33.2 million.

Mr. James B. Sherwood, President, said that the company is facing
heavy debt repayments in 2003, including $158 million of senior
notes falling due on July 1st. The company had planned to sell
part of its shareholding in Orient-Express Hotels to meet this
obligation but the share price has declined since May from
approximately $20 to about $13 today.

In order to meet these obligations the company's board has
decided to sell certain other assets, to reduce its shareholding
in Orient-Express Hotels to slightly less than 50% in order to
deconsolidate Orient-Express Hotels from Sea Containers' balance
sheet, to increase Silja's borrowings and to suspend payment of
common share dividends. Through these and other actions the
company hopes to avoid having to sell the bulk of its
shareholding in Orient-Express Hotels at today's depressed prices
which do not reflect the fundamental value of that company. The
board feels in these circumstances it is unwise to proceed with
the spin-off of Orient-Express Hotels common shares to Sea
Containers shareholders.

"In today's environment of economic worries, fear of further
terrorist attack and weaker capital markets, your board feels
that Sea Containers should take a highly conservative approach in
the conduct of its affairs. Hence the decisions described above.
Despite these concerns we should not lose sight of the improved
financial results," he concluded.

To see financial statements:
http://bankrupt.com/misc/Sea_Containers.htm

CONTACT:  William W. Galvin of The Galvin Partnership, +1-203-
618-9800, for Sea Containers America Inc; or Patricia Harper of
Sea Containers America Inc, +1-212-302-5066

URL: http://www.seacontainers.com


TRENWICK GROUP: Comments on Market Volume, Share Price
---------------------------------------------------------
Trenwick Group Ltd. ("Trenwick") and its subsidiary, LaSalle Re
Holdings Limited, experienced significant trading volume and
price declines in its publicly listed securities yesterday.
At this time and as previously announced, Trenwick continues to
engage in discussions with its current letter of credit providers
regarding the renewal for an additional year of its $226 million
letter of credit facility in support of its Lloyds' operations.
In addition, at this time and as previously announced, Trenwick
continues to review its loss reserves with external actuaries. At
this time, Trenwick has no further comment with respect to the
trading volume and price declines experienced by its publicly
listed securities yesterday. Trenwick will comment when these
matters are concluded.

For further information on Trenwick and its publicly listed
securities, including copies of Trenwick's most recent press
releases, SEC filings and conference call transcripts, please
contact Investor Relations at 441-292-4985 or refer to Trenwick's
website at www.Trenwick.com.

Background Information

Trenwick is a Bermuda-based specialty insurance and reinsurance
underwriting organization with two principal businesses operating
through its subsidiaries located in the United States, the United
Kingdom and Bermuda. Trenwick's reinsurance business provides
treaty reinsurance to insurers of property and casualty risks
from offices in the United States and Bermuda. Trenwick's
international operations underwrite specialty insurance as well
as treaty and facultative reinsurance on a worldwide basis
through its London-based insurer and at Lloyd's.



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B O L I V I A
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AES BOLIVIA: IDB Approves $40M Loan
------------------------------------
AES Communications Bolivia obtained funding to install and
operate infrastructure, a project that is seen to have a positive
impact on the Bolivian economy.  Business News Americas reports
that the Inter-American Development Bank (IDB) has approved a
US$40-million loan to fund the Bolivian telecoms company's
project. Accordingly, the IDB board approved a US$37-million loan
and a US$3-mn syndicated loan to help finance the project, which
is already sponsored by US-based parent company AES Corporation.

"The project will have a positive impact on the Bolivian economy
resulting from investments of nearly US$100 million," IDB project
team leader Luc Grillet said.

The initiative will improve national and international long
distance service, data transmission and value-added services in
the retail telecoms sector, as well as wholesale transport to
other providers and services in calling centers.



===========
B R A Z I L
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BANCO SUDAMERIS: Unibanco Could Be Next Buyer
---------------------------------------------
After Banco Itau SA called off a planned purchase of Banco
Sudameris Brasil SA, Uniao de Bancos Brasileiros SA, Brazil's
fifth biggest bank, presented itself as the next potential buyer
of the Brazilian unit of Italy's IntesaBci Spa, says Bloomberg.

"If they (IntesaBci) do look at selling, we will be looking at
the opportunity," Israel Vainboim, president of Unibanco Holdings
SA, said during a conference call with investors and clients to
discuss third-quarter results.  However, IntesaBci has not yet
offered to sell Sudameris to Unibanco and no talks are being
held, he said.

Itau agreed to buy Sudameris for US$1.44 billion in March.
However, on Tuesday, the negotiations collapsed after both
parties failed to agree on a final price for the unit following a
plunge in Brazilian assets because of concern over a possible
government default.

IntesaBci Chief Executive Officer Corrado Passera said the
Italian bank planned to continue to sell assets to reduce losses
and cut costs by as much as EUR3 billion by 2005.

CONTACT: IntesaBci SpA
         Piazza Paolo Ferrari 10
         20121 Milano
         Italy
         Tel  +39 02 88 441
         Fax  +39 02 8844 3638
         Homepage: http://www.intesabci.it/
         Contact: Corrado Passera - Chief Executive Officer
                  Giampio Bracchi - Vice Chairman
                  Gianfranco Gutty - Vice Chairman


CSN: Announces Record Operational Results For 3Q02
--------------------------------------------------
Companhia Sider£rgica Nacional (CSN) (BOVESPA: CSNA3) (NYSE: SID)
announced Wednesday its financial results for the quarter and
nine-month period ended September 30, 2002. The Company's
unaudited results are presented according to the Brazilian GAAP
Corporate Law and are stated in Brazilian Reais (R$). The
quarterly figures below pertain mostly to the Company's
unconsolidated results and all comparisons, unless stated
otherwise, are related to the same period of 2001. On September
30, 2002, one U.S. Dollar (US$) was equivalent to R$3.8949.

HIGHLIGHTS

- Operating Income before financial and equity results grew 56%
to R$895 million in the nine-month period ended September 30,
2002, reflecting higher sales volume, greater proportion of
exports, higher prices in the external market and lower cost of
goods sold, on a per tonne basis.

- Sales volume in the third quarter 2002 totaled 1.2 million
tonnes of finished products and slabs, 44% higher than in 2001.
In the first nine months of 2002, sales volume totaled 3.5
million tonnes, 25% higher than the same period of 2001. Exports
as a percentage of total sales increased to 39% in the third
quarter, reaching 31% in the first nine months of 2002, increases
of 18 percentage points over the same periods of 2001. These
variations are a result of the Company's recent strategy to
redirect a higher percentage of its sales to exports, making the
most of higher international prices and exchange rate
devaluation, providing a hedge to its foreign currency debt.
Moreover, 2001 sales volumes had been affected by Blast Furnace #
3 (BF#3) and Hot Strip Mill # 2 (HSM#2) revampings.

- Net revenues grew by 64% in the third quarter of 2002, totaling
R$1.2 billion and export revenues, denominated in dollars, rose
from 10% to 39% of total sales revenues in the third quarter. The
growth in the export market is explained by the higher volume and
by the 14% increase in average prices (in spite of the fact that
slabs accounted for 22%). In the first nine months of the year,
net sales grew by 30%, totaling R$3.1 billion.

- The strong operating performance contributed to EBITDA (Gross
Profit - SG&A Expenses + Depreciation and Depletion), of R$579
million, 148% higher than in 3Q01, with an EBITDA margin of
49.3%. Reflecting the growing trend in EBITDA due to higher
exports, September amount was more than 41% of the total recorded
in the 3rd quarter. In the first nine months of 2002, EBITDA was
54% higher, totaling R$1,367 million, with a 44% margin over net
sales. Consolidated EBITDA totaled R$1,339 million. The drop in
the consolidated figures is caused by a non-recurring event. In
the 3rd quarter 2002, CSN Energia recorded R$86 million in a
provision for doubtful accounts related to the effects of Ruling
288/2002 from the Brazilian electric energy regulatory agency -
Aneel - which regulated energy transmissal between the South and
Southeastern regions during the energy shortage. CSN believes
that this receivables are higher than the current recorded and
that they should be financially liquidated.

- In September 30, 2002, CSN's net debt position was US$1.4
billion, a US$0.7 billion reduction compared to December 2001.
This reduction is a result of a US$240 million drop in gross debt
to US$2.2 billion at September 30, 2002 and a US$457 million
increase in cash, which amounted to US$747 million at the same
date. The higher cash position comes from the Company's strong
cash generation, as well as from gains on hedging instruments.
Besides U.S. dollar investments of US$77 million in cash, CSN
maintains exchange rate hedging instruments, in swaps and
options, in the amounts of US$1.5 billion and US$0.6 billion
(protected up to an exchange rate of R$3.075=US$1), respectively.
Thus considering the average assets and liabilities denominated
in dollars, the Company has a net exchange rate exposure of
approximately US$300 million, compatible with the long-term debt
denominated in foreign currency, comprised mainly of: a US$275
million obligation with BNDES due in July 2011, US$79 million in
Euronotes due in June 2007, US$58 million in bilateral contracts
due in December 2006 and a US$49 million under a loan related to
the revamping of BF#3, due in October 2011.

- Despite the record operating performance, CSN had net losses of
R$169 million (R$2.36 per ADR) in 3Q02 and R$577 million (R$8.04
per ADR) in the nine-month period. The deferral of exchange-
related losses incurred in 2001 explains most of the variation
between the net income of R$427 million of the first nine months
of 2001 and the loss in the same period in 2002. That was because
the deferral started as of September 2001, which represented a
R$1.5 billion revenue in that month; besides, the amortization of
that deferral was R$168 million higher in 2002. On a consolidated
basis, CSN had a net loss of R$574 million, compared to a net
income of R$425 million in the first nine months of 2001.

PRODUCTION AND PRODUCTION COSTS

In 3Q02, production output totaled 1.3 million tonnes - a 45%
growth compared to 3Q01, due to the revamping of BF#3 that began
in May 2001, which reduced output to 0.9 million tonnes in 3Q01.
For the first nine months of 2002, crude steel output totaled 3.8
million tonnes, 37% higher than the same period in 2001, while
rolled steel production grew 13% to 3.4 million tonnes
(production volumes measured at the continuous caster for crude
steel, and at the hot strip mill for hot rolled bands - this
volume slightly differs from inventory deposits due to normal
process losses).

Production costs in 3Q02 and in the first nine months of 2002
were lower on a per-tonne basis, although affected by the the
higher average dollar exchange rate, which was 23% and 17% higher
than in 3Q01 and Jan-Sep 2001, respectively.

The higher productivity in 2002 led to a greater dilution of
fixed costs, contributing to the lower costs on a per tonne
basis. In addition, the consumption of outsourced slabs, during
the revamping of BF#3, contributed to cost increases in 2001.

Total production costs maintained their relative proportions,
with the exception of raw materials costs (due to the consumption
of outsourced slabs in 2001) and depreciation. The major
investment projects completed in 2001 (the revamping of BF#3 and
HSM#2) contributed to a R$53 million increase in depreciation in
the nine months of 2002.

SALES

Sales volume of finished products and slabs totaled 1.2 million
tonnes, 44% higher than in 3Q01. This amount includes 97,000
tonnes of exported slabs. In the first nine months of 2002, sales
volume totaled 3.5 million tonnes, 25% higher than in 2001 with
425,000 tonnes of exported slabs.

The domestic market accounted for 61% of total sales volume in
2Q02 compared to 90% in the same period of 2001. In the first
nine months of 2002, domestic sales volume accounted for 69% of
total sales, compared to 87% in 2001. Due to increasing
international prices and dollar appreciation, the Company decided
to boost its exports, aiming at generating a continuous dollar
denominated revenue flow. Higher value-added galvanized steel and
tin mill products accounted for 35% of total sales volume in the
first nine months of 2002, compared to 44% last year, when the
Company did not sell slabs and reduced its hot rolled coils'
sales due to the modernization of HSM#2. Considering only
finished products (excluding slab sales, which accounted for 13%
of sales volume in the first nine months of 2002), coated steel
products accounted for 40% of total sales volume.

CSN's consolidated sales volume was 3.7 million tonnes in the
first nine months of 2002, compared to 2.9 million tonnes last
year. The 118 thousand-tonne difference when compared to Parent
Company's sales volume is basically due to the realization of
inventory in subsidiaries. In 2002, coated products accounted for
38% of total sales volume in 2002 (43%, excluding slab sales).
This difference in sales mix is mainly attributable to the sale
of galvanized products by CISA and GalvaSud, the latter utilizing
cold rolled steel purchased from CSN.

OPERATING RESULTS

- Net revenues, Cost of Goods Sold & gross margin

Net revenues increased 64% to R$1.2 billion in 3Q02. The 44%
higher sales volume and the 10% and 14% higher average prices in
the domestic and external market, respectively, were responsible
for this increase. Higher average prices are related to price
increases implemented in the domestic market at the beginning of
this year (9% in average) and last September (10% in average) and
to higher average prices in the international market and the
impact the real devaluation on export sales. Domestic sales
accounted for 61% of total sales volume compared to 90% in 2001.

In the first nine months of 2002, net revenues totaled R$3.1
billion, 30% higher than in the previous year, with domestic
sales accounting for 74% of total revenues compared to 88% in
9M01. This improvement was due to 25% higher sales volume and 8%
higher average prices in the domestic market, as well as the
recovery in international prices and the reflection of the weaker
real in the export sales. Consolidated net revenues totaled R$3.5
billion in the first nine months of 2002, 19% higher than in the
same period of 2001. The difference between Parent Company and
Consolidated figures is due, in part, to the sale of surplus
energy in the amount of R$88 million through CSN's subsidiary -
CSN Energia and to the sales of Inal, CISA and GalvaSud, which
are dedicated to the sale of higher value added products, using
products supplied by CSN.

In 3Q02, cost of goods sold (COGS) was 19% higher, totaling R$588
million. Higher sales volume and the impact of the higher
exchange rate were the main reasons behind this increase. Higher
depreciation also added R$34 million, but on a per tonne basis,
the cost of steel products was 19% lower. For the first nine
months of 2002, COGS totaled R$1,766 million, 14% higher than the
previous year, due to higher sales volume and an increase in
depreciation during the period, but COGS on a per tonne basis,
dropped 9%. Consolidated COGS was R$1,952 million, 15% higher
than in 9M01.

The gross margin expansion to 49.9% in 3Q02 compared to 30.9% in
3Q01 is due mainly to higher selling prices, to a better market
mix and to lower per tonne production costs. In the first nine
months of 2002, gross margin was 43.3%, or 7.6 percentage points
higher than in 9M01. Consolidated gross margin was in line with
that of the Parent Company, at 43.7%.

- SG&A expenses
In 3Q02 SG&A expenses, without depreciation, totaled R$125
million, R$52 million higher than in 3Q01. The main reasons for
this increase were R$14 million higher handling expenses (freight
and insurance), a function of higher export volume in this
quarter, R$8 million in labor expenses due to dismissals related
to a restructuring in Volta Redonda steel mill, a R$7 million
provision for doubtful accounts and the transfer of the R$13
million provision for the profit sharing program in 2002 to
administrative expenses, which in 2001 had been included in other
operating income/expenses.

In the first nine months of 2002, SG&A expenses totaled R$339
million, 53% higher (or R$117 million) than in the same period in
2001, mainly for the reasons mentioned above, R$32 million of
which was related to handling expenses, R$31 million to the
inclusion of profit sharing provisions in the SG&A line of the
income statement and R$32 million to the adjustment to provision
for doubtful accounts in 2001.

- EBITDA
EBITDA in 3Q02 was 148% higher, totaling R$579 million. EBITDA
margin (EBITDA/Net revenues) was 49.3%, 17 percentage points
higher than in 3Q01. In the first nine months of 2002, EBITDA
totaled R$1,367 million, 54% higher than the same period in 2001,
with an EBITDA margin of 43.9%, among the highest in the world
for a steel company. Such increases are related to the growth of
income/gross margin explained above.

Consolidated EBITDA also grew by 13% and reached R$1,339 million,
with an EBITDA margin of 38.6%. Surplus energy sales, which in
the first half of 2001 generated a 78% EBITDA margin, presented
negative EBITDA in 2002, due to a provision for doubtful accounts
as already explained.

- Other operating income (expenses)
In 3Q02, the Company recorded net revenue of R$3 million,
compared with R$4 million of other operating expenses, net
recorded in 3Q01. In the first nine months of 2002, there was a
R$52 million increase in such net expenses to R$89 million from
R$37 million, due mainly to a provision to recognize the unfunded
pension liability in CBS (CSN's Pension Fund), which began last
January, according to CVM Rule 371/2000 in the amount of R$40
million and to provisions for contingencies.

- Net financial results
With the recent appreciation of the U.S. dollar, the policy to
protect U.S. dollar denominated liabilities has resulted in
lowering the exchange rate-related impact on CSN's financial
result. In 3Q02 alone, swap and options contracts amounted to
US$1.4 billion and US$0.6 billion, respectively and were the main
driver for the increase in financial income of R$1.2 billion in
this quarter and of R$1.8 billion in the first nine months of
2002.

On the other hand, the greater exchange rate variation in 2002
negatively impacted the lines of financial expenses and
monetary/exchange variation. CSN recorded financial expenses of
R$324 million in 3Q02 and R$707 million in 9M02. Provisions for
taxes on financial income are included in that amount and were
substantially higher due to the increase of that income. The line
of net monetary/exchange variations though was also impacted by
the amortization of the 2001 and 1999 exchange rate deferrals, in
the amount of R$82 million and R$287 million, during 3Q02 and
first nine months of 2002, respectively.

The average cost of CSN's consolidated gross debt is stable
around 6%, in dollar terms, while the real cost of debt as per
net financial income (expenses), including hedging contracts, is
approximately equal to the Brazilian CDI (Interbank Loan Rate).

Exchange Rate Impact Deferral: CSN amortized a total amount of
R$557 million during the first nine months of 2002. In relation
to the 2001 exchange rate deferral, in the first nine months of
2002, the Company amortized a total of R$473 million, leaving a
balance of R$272 million to be amortized by 2004, of which R$39
million will be amortized in the fourth quarter of 2002.
Regarding the 1999 exchange rate deferral, amortization expenses
totaled R$84 million in the first nine months of 2002, and the
outstanding balance of R$23 million will be fully amortized by
the end of this year.

- Equity in results of subsidiaries
Equity in results of subsidiaries totaled R$575 million in 3Q02,
and R$880 million for the first nine months of 2002. The increase
of R$220 million and R$408 million, respectively, were due mainly
to the gain, in reais, in offshore affiliated companies, which
have assets denominated in U.S. dollars. This effect was
partially offset by an adjustment in the revenue provision from
the Wholesale Energy Market (MAE), in the amount of R$56 million
(after taxes), due to a Ruling from Aneel, as already explained.

- Income Tax and Social Contribution
In the third quarter of 2002, CSN recorded income tax and social
contribution credits totaling R$415 million. The difference of
R$834 million compared to the same period in 2001 is due to the
higher pre-tax loss recorded in the period. For the same reason,
in the first nine months of 2002, CSN recorded an income tax
credit of R$745 million, a difference of R$870 million compared
to 9M01.

- Net Loss
Net loss in the third quarter of 2002 for the Parent Company was
R$169 million (R$2.36 per ADR). For the first nine months of
2002, net loss was R$577 million, (R$8.04 per ADR). Consolidated
figures were very close to the parent's, recording a net loss of
R$574 million.

CONSOLIDATED NET DEBT
In the first nine months of 2002, CSN's consolidated net debt was
reduced from US$2.1 billion to US$1.4 billion, due to cash
generation and gains from hedging operations. On September 30,
2002 cash and cash equivalents were US$747 million.

In October 2002, the Company paid US$90 million of the US$140
million US Commercial Paper, having succeeded in renegotiating a
47 day postponement, at the original terms. During this period,
CSN will be renegotiating with its creditors a pre-export
facility.

CAPITAL EXPENDITURES
In 9M02, total CAPEX was R$231 million, with R$38 million being
allocated to environmental projects, R$24 million in residual
payments for the revamping of BF#3 and HSM#2 and R$169 million
toward other projects related to the maintenance of the Volta
Redonda mill. Compared to the first nine months of 2001,
investments were R$462 million lower, due to the revamping of
BF#3 and HSM#2 in 2001.

Companhia Sider£rgica Nacional, located in the state of Rio de
Janeiro, Brazil, is a steel complex integrated by investments in
infrastructure and logistics, that combines in its operation
captive mines, an integrated steel mill, service centers, ports
and railways. With a total annual production capacity of
5,400,000 tonnes of crude steel and gross revenues of R$4.0
billion reported in 2001, CSN is also the only tin-plate producer
in Brazil and one of the five largest tin-plate producers
worldwide.

CONTACT:  Luciana Paulo Ferreira, CSN - Investor Relations
          Tel. 021 2586 1442
          luferreira@csn.com.br
          www.csn.com.br


CSN: Officially Terminates Negotiations With Corus
--------------------------------------------------
Companhia Siderurgica Nacional, a business corporation with
headquarters situated at Rua Lauro Muller, 116, 36th floor and
suite 3702, in the city of Rio de Janeiro - RJ, registered in the
National Roll of Legal Entities - CNPJ - under No.
33.042.730.0001-04 ("CSN"), according to the strategy of
internationalization of its activities, announced on July 17,
2002 a non-binding Heads of Agreement with Corus Group plc aiming
at the integration of its operations. This transaction was
subject to a number of conditions, to be discussed, negotiated
and concluded within 120 days.

However, due to the great difficulties and uncertainties in the
current global economic scenario and in the international
financial markets, identified by the Board of Corus Group plc,
CSN has decided not to proceed with the transaction announced on
July 17, 2002.


CSN: Corus Group Terminates Planned Merger With CSN
---------------------------------------------------
On 17 July 2002, Corus announced that it had reached agreement in
principle on a proposed merger with Companhia Siderurgica
Nacional (CSN). As stated, the proposals were subject to a number
of conditions and the Corus Board would continue to monitor the
situation as the work on the merger progressed.

Despite the strong strategic rationale for the merger, ongoing
uncertainties in the global business environment and the
financial markets have led the Board to conclude that the
transaction cannot be completed as envisaged at this time and
therefore it has decided to terminate the proposed transaction.

The Corus management will remain strongly focused on the
restoration of the performance and competitiveness of its
existing carbon steel assets. Although progress continues to be
made in this regard, since early-October there has been
increasing evidence that the demand for steel products in its
core UK and continental European markets is not at the level the
Group expected at the time of the announcement of its interim
results in September. As a consequence while the second half
operating result (before exceptional items) is expected to be
around (pound)100m better than the first half ((pound)252m loss),
this is not the pace of recovery anticipated particularly due to
a squeeze on the profitability of downstream operations.

Although the improving trend of results is expected to continue
into the first quarter, the outlook beyond that is uncertain with
the pace and timing of economic recovery and demand difficult to
predict.


EMBRATEL PARTICIPACOES: Bank Sets Up Investment Fund
----------------------------------------------------
The bank Bassini, Playfair & Wright, set up an investment fund
where some of Brazil's largest telcos could channel money in
order to buy Embratel Participacoes S.A., Business News Americas
reports, citing Brazilian daily Folha de Sao Paulo.

Embratel Participacoes, which holds 98.8% of Empresa Brasileira
de Telecomunicacoes S.A. (Embratel), Brazil's number one long
distance operator, is controlled by bankrupt US carrier WorldCom.
The Company posted a net loss of BRL550 million (US$142mn) for
the third quarter of this years, more than double the BRL195-
million loss in the same period last year.

Early this month, the holding company was notified by the New
York Stock Exchange (NYSE) that it failed to meet their ongoing
compliance rule of a stock price trading above US$1.00 for a
period exceeding 30 days. Embratel is currently in discussions
with the NYSE with respect to this issue.

CONTACT:  EMBRATEL PARTICIPACOES S.A.
          Investor Relations
          Silvia Pereira
          Tel. (55 21) 2519-9662
          Fax: (55 21) 2519-6388
          Email: Silvia.Pereira@embratel.com.br
                 invest@embratel.com.br
                  or
          Press Relations:
          Helena Duncan/Mariana Palmeira
          Tel: (55 21) 2519-3653/3654
          Fax: (55 21) 2519-8010
          Email: hduncan@embratel.com.br
                 mpalm@embratel.com.br


KLABIN: Government, Private Banks Provide $159M Loan
----------------------------------------------------
Brazilian paper and pulp company Klabin, which is currently
struggling to pay maturing foreign debt that has been magnified
in local terms by the 39%-depreciation of the local currency, got
a shot in the arm from the government and a group of private
banks.

According to a report by Reuters, Klabin managed to obtain a
BRL575-million (US$159mn) loan, which will be financed partly by
Brazil's National Social and Economic Development Bank (BNDES).
The move is seen part of a planned debenture issue of up to
BRL1.2 billion (US$328mn) to help it cover short-term debt
payments.

In addition to the loan, Klabin is also planning to sell assets
worth between US$250 million and US$300 million. According to
Reuters, paper and pulp sector analysts have been pushing for
such move as part of a solution to Klabin's cash flow
difficulties.

Last week, Standard & Poor's ratings agency lowered its local and
foreign currency corporate credit rating on Klabin after the firm
missed a payment on US$50 million in Eurobonds. At the end of
September, Klabin's debt totaled BRL3.2 billion, 67% of which is
in foreign currency.

CONTACT:  Ronald Seckelmann, Financial and IR Director
          Luiz Marciano Candalaft, IR Manager
          Tel: (55 11) 3225-4045
          E-mail: marciano@klabin.com.br

          Paulo Roberto Esteves
          Tel: (55 11) 3848-0887 Extension 205
          Email: paulo.esteves@thomsonir.com.br


MAXBLUE: BB May Sieze Control Following An Enormous Loss
-------------------------------------------------------
Brazilian federal bank Banco do Brasil (BB) could take control of
Maxblue Brazil away from Deutsche Bank after the online brokerage
and financial consulting firm unexpectedly posted a substantial
loss, Folha de Sao Paulo newspaper suggested.

BB has a 49.9% stake in Maxblue, which posted a loss of BRL77
million in the first year after it was launched. Maxblue was
launched in Latin America in April 2000. Deutsche Bank said it
would invest US$200 in the startup. The portal went up in Brazil,
and the bank announced plans to expand to Mexico, Argentina and
Chile within a year.

A takeover would involve the exchange of BB shares for MaxBlue
Brazil shares, the paper said. However, the move still awaits the
decision of President-elect Luiz Inacio Lula da Silva, of
Brazil's workers party.


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

DISPUTADA: ExxonMobil Announces Sale To Anglo American
------------------------------------------------------
Exxon Mobil Corporation (NYSE:XOM)("ExxonMobil") announced
Wednesday that its affiliates have completed the sale of Compania
Minera Disputada De Las Condes Limitada ("Disputada"), a Chile
copper mining business, to affiliates of Anglo American plc for
$1.3 billion plus possible future copper price participation of
up to $120 million.

The principal assets of Disputada include the Los Bronces copper
mine, the El Soldado copper mine and the Chagres smelter, all
located in Chile's central region.

CONTACT:  Cia. Minera Disputada de las Condes S.A.
          Av. Pedro de Valdivia 291
          Providencia
          Santiago
          Chile
          Phone: (56 2) 230 6000
          Fax: (56 2) 230 6280

          Exxon Mobil Corporation
          5959 Las Colinas Boulevard
          Irving, Texas 75039-2298
          http://www2.exxonmobil.com/
          Contacts:
          For all inquiries, call:
          ExxonMobil Shareholder Services
          Phone: 1 800 252 1800 (within the Continental U.S.)
                781 575 2058 (outside the Continental U.S.)

          In Chile:
          Mobil Cono Sur Ltda.,
          Av. Nva Tajamar N. 555 Dpto. 301
          Las Condes, Santiago, Chile
          Phone: 56 2 364 6000
          Home Page: http://www.esso.com/eaff/essocca/



=============
J A M A I C A
=============

AIR JAMAICA: JLP Seeks Government Details for `Open Skies'
---------------------------------------------------------
JLP, the opposition party in Jamaica, is asking the government to
clearly outline its plans for the national carrier after gaining
an `open skies' agreement with the United States government.
JLP spokesman on transport Mike Henry said the party
congratulates the government for earning the agreement with the
US, adding that Air Jamaica could be poised for a sharp upturn of
business. Under the agreement, Air Jamaica would have improved
access to the US, which could improve revenues dramatically.

However, according to Henry, Air Jamaica is still burdened by the
general economic downturn in the airline industry, which begun
with the September 11 terrorist attacks in New York. HE added
that this should be considered in any plan the government may
formulate for Air Jamaica.

On the call for a single regional airline, Henry said that the
position taken by the chairman of Air Jamaica is not in line with
the idea. According to Mr. Henry, Gordon Stewart "sees no room or
basis for such a merger."

Trinidad and Tobago Prime Minister Patrick Manning has said that
he expected Jamaica Prime Minister P J Patterson to support the
call for a merger of the region's major national carriers.

CONTACT: AIR JAMAICA
         4 St. Lucia Avenue
         Kingston 5,
         Jamaica
         Tel No. 876/922-3460
         Fax /929-5643
         Email: webinfo@airjamaica.com
         Contact:
         Gordon Stewart, Chairman
         Allen Chastanet, Vice President for Marketing and Sales


AIR JAMAICA: Founding Member Comments On Earlier Report
-------------------------------------------------------
John Gilmore, a founding member of the Air Jamaica Acquisition
Group, sent a letter to The Jamaica Gleaner, to comment on a
reporter's September 13 article "Air Jamaica may need financial
assistance."

Below is the letter:

THE EDITOR, Sir:

Your September 13 article "Air Jamaica may need financial
assistance," has just been brought to my attention and warrants
comment.

As a founding member of the Air Jamaica Acquisition Group that
negotiated the purchase of Air Jamaica from the Government I have
watched the development of the airline with interest. Air Jamaica
is a national asset well respected throughout the aviation world
for the quality of its people and product and operational
integrity.

On the financial side it is another matter. Since privatisation
the airline has cost the Jamaican taxpayer substantially more
than when it was wholly owned by the Government. The ownership of
the airline continues to operate the business on the basis that
operating losses will be funded by the taxpayer, either directly
or indirectly through government loan guarantees with no adverse
impact on their ownership and control over the airline.

In a normal business environment where additional capital is
required each partner has the option to invest on a pro rata
basis or see his percentage ownership diluted. In the case of Air
Jamaica the government has covered the losses incurred by the
private sector owners who remain in direct control.

Meanwhile, the private sector owners continue to invest in their
other business enterprises in Jamaica and elsewhere confident
that any losses at the airline will be covered by the taxpayer.
The most recent example of this is the opening of the EC $20
million 284-room Sandals Grande in St. Lucia by Air Jamaica's
largest private sector shareholder and chairman, Gordon P.
Stewart.

The private sector shareholders initially laid the blame for Air
Jamaica's losses on the government - for the Category 2
designation of Jamaica by the US FAA preventing route expansion
or the use of new aircraft on routes to the United States -
claiming this was not within their competence. In fact it was
clearly laid down in US law that any route expansion or change of
aircraft would cause a review by the FAA. Air Jamaica chose to
acquire new aircraft without ensuring that the FAA Category 1
framework was in place. A business choice with business
consequences for which the taxpayer was called to account.

The most recent losses, post 9/11, as detailed in your article
are as a result of Air Jamaica cutting back less than the
industry at large and incurring losses as a consequence. This may
well have been a good thing for the overall tourism industry in
Jamaica - an industry in which Mr. Stewart has a major financial
interest - and my point is not to criticise Air Jamaica for that
decision but to draw the attention of the Jamaican taxpayer to
the next step.

If Air Jamaica requires government assistance to cover those
losses over and above its pro rata shareholding in the airline,
the government's ownership interest in the airline (and say in
its decision-making) should be increased accordingly. I continue
to wish Air Jamaica well - a world class airline and a credit to
the country - but, given the coincidence of the announcements of
more government money needed for Air Jamaica and the opening of
the Sandals Grande in St. Lucia - I felt that I should alert your
readers to some of the implications - a further taxpayer
investment in Air Jamaica may well be money well spent but the
taxpayer should get full value for that investment on normal
commercial terms.

I am, etc.,
JOHN GILMORE
jptgilmore@hotmail.com
Edinburgh
Scotland
Via Go-Jamaica



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

GRUPO ELEKTRA: Moody's Cuts Credit Rating To B2
-----------------------------------------------
Moody's Investors Service downgraded one level the credit rating
of Grupo Elektra SA, Mexico's largest consumer-electronics
retailer, to B2 from B1. The action affects US$275 million of 12%
bonds due in 2008. The downgrade reflects Moody's concerns that a
weak economy, increased competition and poor investments will
lower sales growth and hurt the Company's ability to pay its
debt.

The rating, according to Moody's, remains on review for possible
further downgrade on concerns about changes to Elektra's
corporate and financial status.

Elektra's earnings before interest, taxes, depreciation and
amortization rose 11% to US$66 million in the third quarter from
US$59 million a year ago. That cash covered the Company's
interest expense of US$17 million during the quarter.

Joaquin Lopez-Doriga, an analyst with Deutsche Bank Securities in
New York, believes Elektra will improve its earnings following a
decision to convert stores from a money-losing clothing chain
called The One into its flagship Elektra stores, which sell
electronics, furniture, appliances and other household goods.

"The core business is starting to improve," Lopez-Doriga said. "I
don't think the Company has a cash flow problem."

However, Elektra has seen the value of its shares drop 32% in the
last month on concern it isn't being kept separate from other
investments owned by Ricardo Salinas Pliego, including No. 2
Mexican broadcaster TV Azteca SA and Unefon SA, a money-losing
mobile phone service provider that has defaulted on debt. Elektra
sells cellular telephones and service for Unefon, which may owe
Elektra more than US$5 million, analysts said.

Grupo Elektra, S.A., headquartered in Mexico City, is a leading
Mexican retailer of furniture, electronics, and appliances. The
company finances about 70% of customer purchases. Revenues were
approximately Ps 15.6 billion (US$1.7 billion) in 2001.

New York
Tom Marshella
Managing Director
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Marie Menendez
VP - Senior Credit Officer
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653


GRUPO MEXICO: S&P Lowers Asarco to 'SD' After Missed Payment
------------------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that it lowered
its corporate credit and senior debt ratings on Asarco Inc., one
of the three mining subsidiaries of Grupo Mexico S.A. de C.V.
(GMexico), to 'SD' from 'CC' following the missed principal
payment on the company's $450 million revolving credit facility,
due Nov. 12, 2002. The rating on the facility was lowered to 'D'
from 'CC'. Ratings were removed from CreditWatch, where they had
been placed on Nov. 9, 2001.

The ratings of related companies, Southern Peru Copper Corp.
(CC/Watch Neg/--) and Grupo Minero Mexico S.A. de C.V. (SD/--/--)
remain unchanged.

Like Asarco, these two companies are subsidiaries of GMexico.
Asarco has $1.0 billion in debt as of September 2002.

"The restructuring negotiations between GMexico's subsidiaries
and their creditors continue under an understanding agreement
that has halted the acceleration of several principal payments,
including those on Asarco's revolving credit facility, which
accounts for about 44% of this subsidiary's total debt as of
September 2002," stated Standard & Poor's credit analyst Federico
Mora.

According to the company, the payment of this facility will be
extended until the beginning of 2003 when Asarco expects to pay
in full this facility using proceeds recently obtained from a
financing at its railroad affiliate, Ferromex, as well as a new
financing that is being negotiated for its subsidiary Americas
Mining Corp. (AMC), which groups all the mining subsidiaries of
GMexico. Still, Standard & Poor's views this missed payment at
the due date as a default.

Progress on restructuring negotiations at Asarco is dependent on
the recent talks with the U.S. Department of Justice. The
discussions with the U.S. agency are mainly focused on the
definition of the sale of Southern Peru Copper Corp. by Asarco to
Americas Mining Corp., which groups all the mining subsidiaries
of GMexico.

ANALYSTS:  Federico Mora, Mexico City (52) 55-5279-2036
           Manuel Guerena, Mexico City (52) 55-5279-2011


SADIA: S&P Cuts Local Currency Rating To BB-
--------------------------------------------
Standard & Poor's Rating Services said Wednesday that it lowered
the local currency rating on Brazilian frozen and refrigerated
food distributor Sadia S.A. to 'BB-' from 'BB'. The foreign
currency rating was affirmed at 'B+'. The outlook on the local
currency rating is stable, and on the foreign currency is
negative.

The rating action reflects Sadia's exposure to an increasingly
riskier economic environment for Brazilian corporates because of
the following concerns:

-- Sales of higher margin products are concentrated in Brazil.
Although exports represent a significant cushion to the
volatility of the domestic market, the product mix for external
markets is poorer and one of its main external markets is being
threatened by tariff barriers;

-- Worsening debt profile. Credit lines available are shorter in
tenor and more expensive, even though Sadia has showed access to
the bank debt market, being able to raise one-year commercial
loans to benefit from arbitrage gains and rollover short-term
maturities; and

-- Exposure to Brazilian securities, including particularly
volatile Brazilian bonds.

The company's relative flexibility to deviate sales to the
international markets offset the slowdown of the domestic economy
in 2001-2002. Sadia showed strong operating results in the third
quarter of 2002 as a result of strong sales focus on external
market. In the third quarter, the company directed 47% of gross
sales to international markets compared to 40% in the same period
of 2001 - an increase of 42% in exported volumes and 49% in sales
in local currency. Part of the poultry sales that were diverted
to exports was compensated by the increase in sales of pork (54%
in the quarter) and processed products (11%) in Brazil. Sadia has
also managed to improve the geographic mix of its exports,
reducing its dependence on one specific market. Sadia has been
able to successfully manage its sales mix, with more valued-added
domestic sales and profitable exports, resulting in stronger
operating margins even under adverse economic conditions.

"However, the positive effect on revenues and cash generation of
stronger sales from exports in the last few quarters is rather a
consequence of the significant depreciation of the real than
sustained positive international markets, suggesting that
currency volatility will continue influencing Sadia's results.
The average price of poultry -Sadia's largest export item- has
decreased 32% in dollar terms in the past nine months due to
saturation of some international markets," stated Standard &
Poor's credit analyst Milena Zaniboni.

The decision of the European Union Commission to increase import
taxes on salted poultry cuts (to 75% from 15.4% on the type of
product exported by Sadia) practically eliminates the
competitiveness of Brazilian exporters. The EU is a significant
market to Sadia, accounting for 25% of exports, or roughly 10% of
revenues, 70% of which would be included in categories penalized
by such change in taxes. The final impact on Sadia's numbers is
still unclear, and the company is analyzing possible ways-out.

The credit crunch that has been affecting most Brazilian
corporates will also affect the company's credit measures as the
average cost of debt increases and shorter tenor funding options
impose recurrent refinancing risk.


SADIA: S&P Lowers IFC Trust Certificates to 'BB-'
-------------------------------------------------
Standard & Poor's Ratings Services lowered Wednesday its rating
on Sadia IFC Trust's US$165 million certificates due 2008 to 'BB-
' from 'BB'. The certificates are backed by a B loan made by
International Finance Corp. (IFC) to Sadia S.A. (Sadia), a
Brazilian corporation.

The rating action follows Standard & Poor's lowering today of its
local currency rating of the transaction's underlying obligor,
Sadia, to 'BB-' from 'BB'. Because the rating of Sadia IFC Trust
is directly linked to, and can be no higher than, Sadia's local
currency rating, the rating on the IFC Trust certificates has
been downgraded accordingly.

The lowering of Sadia's local currency rating is a result of
Sadia's exposure to an increasingly riskier economic environment
for Brazilian corporates. These risks include:

-- The sale of higher margin products is concentrated in Brazil.
While exports represent a significant cushion to the volatility
of the domestic market, the product mix for external markets is
poorer and one of its main external markets is being threatened
by tariff barriers;

-- The worsening debt profile. Credit lines available to
Brazilian corporations are shorter in tenor and more expensive
even though Sadia has showed access to the bank debt market,
being able to raise one-year commercial loans to benefit from
arbitrage gains and rollover short-term maturities; and

-- The exposure to Brazilian securities. Including, particularly
volatile Brazilian bonds. (See related Sadia S.A. press release
published Nov. 13, 2002.)

The rating of Sadia IFC Trust's US$165 million certificates is
still above the Federative Republic of Brazil's 'B+' foreign
currency rating due to IFC's preferred creditor status.
Historically, governments have permitted debtors to continue to
service their foreign currency-denominated IFC loans despite the
imposition of exchange controls and have not included IFC loans
(which are generally made to private sector entities) in forced
debt reschedulings. Given IFC's membership in the World Bank
Group, Standard & Poor's believes that there are strong
incentives for governments to continue to treat IFC loans in this
manner. As a result, IFC borrowers generally have been allowed to
obtain the foreign exchange reserves necessary to effect payment
in U.S. dollars on IFC loans, even during periods of restricted
access to such reserves or limitations on the servicing of
offshore debt. The assigned rating, therefore, represents the
ability of Sadia to generate sufficient local currency to repay
the dollar-denominated debt service of the certificates and is
not constrained by the foreign currency rating of Brazil.

IFC is the legal lender of record for the loan and retains a
portion of the loan and participation. The borrowers are
obligated to pay debt service to IFC, which will pass
proportionate payments through to the trust.

CONTACT:  Standard & Poor's, New York
          Diane Audino, 212/438-2388
          Cesar Fernandez, 212/438-2681
          Jean-Pierre Cote Gil, Sao Paulo (55) 11-5501-8946



=================================
T R I N I D A D   &   T O B A G O
=================================

BWIA: $13M Is Loan, Not Bail Out
--------------------------------
BWIA chief executive Conrad Aleong said that the US$13 million
the airline will be receiving from the government of Trinidad and
Tobago is strictly a loan, and not a complete bailout plan. The
Tuesday edition of the Trinidad Guardian quoted Aleong saying
that while the company is extremely grateful for the financial
assistance, it must be remembered that the money is a loan that
must be repaid, not a hand out.

The loan, which is payable within ten years, comes with two
primary conditions. One of the conditions requires BWIA to reduce
monthly operation expenses by US$1.4 million, significantly
higher than the airline's original target savings of US$1 million
to keep it on air, reports CaymanNetNews.

Some unions representing BWIA employees are asking how the
government computed for the US$1.4 million savings target. The
unions also worry how BWIA will satisfy the said condition
without cutting jobs.

The other condition is that BWIA must sign a Memorandum of
Understanding that will require BWIA to cooperate closely with
the government in many areas.

Under the memorandum, BWIA must agree to be under the scrutiny of
a group of independent consultants, who will recommend further
cost-cutting solutions after the study.

The six-month study, which starts on January, will also consider
the feasibility of a single regional carrier by fusing the
regions troubled airlines.

Aleong said that it is very reasonable for the government to make
sure that the airline can repay the debt by ensuring the
operational changes makes for a viable business.

As of now, BWIA has not made any payments towards liquidating
their debt, according to Trade minister Ken Valley.

The memorandum, drafted by Aleong and the government now awaits
the approval of the airline's board.

CONTACT:  British West Indies Airways
          Phone: + 868 627 2942
          E-mail: mailto:mail@bwee.com
          Home Page: http://www.bwee.com/
          Contacts:
          Conrad Aleong, President and CEO (Trinidad)
          Beatrix Carrington, VP Marketing and Sales (Barbados)
          Paul Schutz, CFO (Trinidad)


BWIA: Virgin Atlantic's Ad Campaign Fuels Controversy
-----------------------------------------------------
BWIA wrote to the Advertising Standards Authority protesting an
advertisement by British airline Virgin Atlantic Airways. The
Trinidad Express reports that in the ad, which appeared in two
local papers Sunday, the W in BWIA was replaced with a V with the
slogan "Better Virgin. It's Available".

Virgin's sales and marketing manager Rachel Pilgrim, clarified
that the ad was not intended as an attack on BWIA, it was only to
"ruffle a few feathers and make people smile".

Pilgrim also told the Daily Express that the controversial ad
would only be run once, to grab customer attention. Consequent
Virgin ads are of a more conventional nature.

Virgin Atlantic has been known for making fun of competing
airlines. American Airlines and British Airways were poked fun
with slogans like "No way AA" and "No way BA" on several Virgin
Atlantic aircrafts.

Virgin, which has flights to Antigua, Barbados and St. Lucia will
be expanding its services to Tobago in May. Flights to the
Caribbean will be increased to 16 from 7 per week.

Pilgrim added that the Virgin has no intention of flying to
Trinidad citing a lack of infrastructure. She added that they are
not set out to destroy BWIA or any other airline, but to offer a
choice. Virgin boasts of competitive fares and an on-board menu,
allowing passengers to order meals of their choice.

BWIA communications director Clint Williams said that Virgin
Atlantic flights to the Caribbean does not threaten BWIA, as BWIA
retains the largest passenger share out of Barbados.

CONTACT:  VIRGIN ATLANTIC AIRWAYS
          Ground Floor, Parravicino Office Complex
          Hastings, Barbados
          Tel: 246 228 4886 or 1800 744 7477


BWIA: Union Calls For Forensic Audit
------------------------------------
The National Trade Union Centre (NATUC) is asking that BWIA be
subjected to a forensic audit, according to the Wednesday edition
of the Trinidad Express. NATUC's secretary Vincent Cabrera
announced the union's decision at a press conference held
Tuesday. Mr. Cabrera also disclosed a rally is planned for Friday
afternoon to update workers on issues concerning BWIA and Caroni
Ltd, a company which, he claims, has lost about US$100 million to
corruption annually.

According to Mr. Cabrera, if he were to put US$13 million in
BWIA, he would want a forensic audit on the airline, which
incidentally is what the unions are seeking. He added that the
airline couldn't function without a "critical minimum of staff".

Mr. Cabrera said BWIA should have had a strategic business plan
in place and worked with the union to study if the airline would
bee viable in the future.



               ***********


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 Oona G. Oyangoren, Editors.

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

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