/raid1/www/Hosts/bankrupt/TCRLA_Public/021220.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, December 20, 2002, Vol. 3, Issue 252

                           Headlines


A R G E N T I N A

AOL LATIN AMERICA: Reaffirms Strategic Partnership With Itau
CLAXSON INTERACTIVE: Nasdaq Denies Appeal, Delists On SmallCap
PECOM ENERGIA: HSBC Approval Expected on $101M Bond Issue
* S&P Lowers IBRD-Guaranteed Argentine Notes After Nonpayment
* Finance Official Briefs Argentina's Payments to Lenders


B O L I V I A

BANCO SANTA CRUZ/ MERCANTIL: Sovereign Downgrade Affects Ratings
CRE: S&P Lowers Local Currency Rating to 'B+' On Weakness
COTEL: Detecon to Drop 5-year Contract In March 2003


B R A Z I L

AES ELPA: Delays Loan Negotiation Deadline With BNDES
ESCELSA: UBS Warburg Announces Pricing of C-Bond
VARIG: Rescinding Leas Contract on 22 Embraer Planes
* Brazil Gets $3.1B Second Installment of IMF Loan


C H I L E

AES GENER: Opposes CNE Proposal to Install Emergency Turbines
ENDESA CHILE: Property Owner Agrees To Critical Land Swap


D O M I N I C A N   R E P U B L I C

TRICOM: Announces Debt Exchange Offer, Details to Follow


E L   S A L V A D O R

CAESS/EEO: Continued Weakness Prompts Fitch's Mixed Review


J A M A I C A

CABLE & WIRELESS: Squabble With Digicel Could Turn Vicious


M E X I C O

AHMSA: Scant Bankruptcy Laws Delay Repayments
SAVIA: Seminis Forms Special Committee to Review Buyout Proposal


P E R U

WIESE SUDAMERIS: Acquisition By Chilean Group Imminent


V E N E Z U E L A

CERRO NEGRO: Fitch Places Ratings On Watch Negative
FERTINITRO FINANCE: Fitch Puts `CCC' Debt On Watch Negative
PETROLERA HAMACA: 'BB+' Debt Rating on Watch Negative
SINCRUDOS DE ORIENTE: Ratings On Watch Negative
PETROZUATA FINANCE: Fitch Places Ratings On Watch Neg.
CITGO: Strike Prompts Moody's Review For Possible Downgrade


     - - - - - - - - - -

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

AOL LATIN AMERICA: Reaffirms Strategic Partnership With Itau
------------------------------------------------------------
America Online Latin America, Inc. (NASDAQ-SCM: AOLAC), a leading
interactive services provider in Latin America, and Banco Itau,
S.A., the largest bank by market value in Brazil, announced
Wednesday modifications designed to strengthen their Strategic
Interactive Services and Marketing Agreement to promote the co-
branded AOL Brazil/Itau service to Banco Itau's more than 9
million customers.

The Revised Strategic Marketing Agreement provides AOL Brazil
with expanded access to Banco Itau's extensive customer base.
Part of the plan includes intensified member acquisition through
point-of-sale displays, special offers, and Itau Promotions to
benefit Itau customers.

These enhancements are designed to build upon the Companies'
existing relationship by providing a stronger member acquisition
channel for the co-branded AOL Brazil/Itau service launched in
December 2000, and by restructuring Banco Itau's existing
marketing commitments. As part of the revised agreement and the
Companies' intensified efforts to reach and attract Banco Itau
customers to the co-branded service, Banco Itau will:

-- Display and promote the co-branded AOL Brazil/Itau service in
hundreds of Banco Itau's banking branches throughout Brazil, by
providing point-of-sale displays and interactive kiosks, staffed
by AOL Brazil promoters, to help banking customers sample the
service. Customers will be able to register for the co-branded
service quickly and easily at these interactive kiosks -- one of
AOL Brazil's most efficient means of membership acquisition;

-- Offer Banco Itau customers who become members of the co-
branded service a one month free trial period. Banco Itau
customers who select the unlimited monthly AOL Brazil service
price plan will also receive a 20% savings on the monthly fee.
Banco Itau will also provide exclusive or preferred online
banking features that will benefit the members of the co-branded
service;

-- Include co-branded AOL Brazil/Itau software CDs in Banco Itau
direct mail promotions; and

-- Promote the co-branded AOL Brazil/Itau service across Banco
Itau's various online and offline marketing initiatives,
including TV advertisements.

As part of AOL Brazil and Banco Itau's efforts to strengthen the
marketing initiatives of the co-branded service, AOL Latin
America will now oversee marketing activities, which will be
funded by Banco Itau. The revised agreement also eliminates
subscriber and revenue targets originally set for the second year
of the service, which ended in December 2002, and restructures
the targets for the remaining years so that they are now based on
the implementation of Itau's marketing commitments, as well as
minimum revenue contribution levels. In connection with the
revised agreement, the maximum remaining aggregate amount that
Banco Itau would have to pay for failing to meet all of these
targets has also been reduced by approximately half.

Charles Herington, President and CEO of AOL Latin America, said:
"Our partnership with Banco Itau is an important element of AOL
Latin America's strategy and has been for more than two years.
Over those two years, we've learned a great deal about what will
work best in attracting members to the co-branded service. We're
excited about this revised agreement because, in addition to
leveraging the power and reach of the Banco Itau and AOL brands,
it now provides AOL Brazil with a strong retail presence directly
in Banco Itau branches, as well as a presence in their television
advertising. Our combined marketing muscle and the quality of
Banco Itau's customer base will help us strengthen our business
fundamentals and more effectively implement our marketing
initiatives."

The existing co-branded AOL Brazil/Itau service combines the full
suite of features and services available to all AOL members in
Brazil, including e-mail and instant messaging, with full online
banking capabilities for Itau banking customers. Current users of
the co-branded AOL Brazil/Itau service will be able to enjoy the
new pricing option offered as part of this agreement.

Under this agreement Banco Itau will no longer subsidize free
hours on the co-branded service, but may do so for select private
banking customers, Banco Itau employees and certain other
members. AOL Latin America believes that the elimination of these
subsidies will, in keeping with several other company-wide
initiatives, lead to higher value members.

Banco Itau customers joining or using the co-branded service for
the first time will now be required at sign up to choose a paid
pricing plan, with a 20% discount from the price for the standard
AOL Brazil service in the case of the unlimited use plan.
Existing members to the co-branded service will also be offered
an opportunity to choose a discounted unlimited use pricing plan.
Those existing members who have not already chosen a pricing plan
or do not choose a pricing plan within a prescribed time period,
which the Company reports could be a maximum of approximately
495,000 members, will have their service discontinued over the
next seven months. AOL Latin America noted that this number
represents the maximum potential reduction in members of the co-
branded service and is not expected to have a material impact on
revenues or costs because, as previously disclosed, a substantial
majority of these members are inactive.

About America Online Latin America

America Online Latin America, Inc. (NASDAQ-SCM: AOLAC) is the
exclusive provider of AOL-branded services in Latin America and
has become one of the leading Internet and interactive services
providers in the region. AOL Latin America launched its first
service, America Online Brazil, in November 1999, and began as a
joint venture of America Online, Inc., a wholly owned subsidiary
of AOL Time Warner Inc. (NYSE:AOL), and the Cisneros Group of
Companies. Banco Itau, a leading Brazilian bank, is also a
minority stockholder of AOL Latin America. The Company combines
the technology, brand name, infrastructure and relationships of
America Online, the world's leader in branded interactive
services, with the relationships, regional experience and
extensive media assets of the Cisneros Group of Companies, one of
the leading media groups in the Americas. The Company currently
operates services in Brazil, Mexico and Argentina and serves
members of the AOL-branded service in Puerto Rico. It also
operates a regional portal accessible at www.aola.com. America
Online's 35 million members worldwide can access content and
offerings from AOL Latin America through the International
Channels on their local AOL services.

This release contains forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995, including statements regarding (i)
the expectation that the revised agreement with Banco Itau will
lead to higher value members, (ii) the expected number of members
of the co-branded service who may have their service discontinued
for failure to select a price plan and (iii) our expectation that
the termination of these members of the co-branded Banco Itau
service will not have a material impact on revenues or costs.
These forward-looking statements are subject to a number of risks
and uncertainties, which are described in our Annual Report on
Form 10-K for the period ended December 31, 2001, and from time
to time in other reports we file with the SEC, as well as the
following risks and uncertainties: uncertainty relating to our
ability to convert our subscribers into paying subscribers, our
limited operating history, uncertainty regarding the success of
new marketing initiatives under the revised agreement with Banco
Itau, uncertainty regarding our ability to encourage members to
select paid plans, macroeconomic developments in Brazil, the
actions of our competitors and our ability to penetrate our
markets. Actual results could differ materially from those
described in the forward-looking statements.


CLAXSON INTERACTIVE: Nasdaq Denies Appeal, Delists On SmallCap
--------------------------------------------------------------
Claxson Interactive Group Inc. (Nasdaq: XSON) announced Wednesday
that a Nasdaq Listing Qualifications Panel has denied Claxson's
appeal of an October 8, 2002 Nasdaq Staff Determination to delist
Claxson's Class A Common Stock, par value $.01 per share, from
The Nasdaq SmallCap Market. Accordingly, Claxson's Class A Common
Stock has been delisted from The Nasdaq SmallCap Market effective
with the open of business Wednesday, December 18, 2002. Claxson's
Class A Common Stock is eligible to trade on the OTC Bulletin
Board.

About Claxson

Claxson Interactive Group is a multimedia company providing
branded entertainment content targeted to Spanish and Portuguese
speakers around the world. Claxson has a portfolio of popular
entertainment brands that are distributed over multiple platforms
through its assets in pay television, broadcast television, radio
and the Internet. Claxson was formed on September 21, 2001 in a
merger transaction, which combined El Sitio, Inc. and other media
assets contributed by funds affiliated with Hicks, Muse, Tate &
Furst Inc. and members of the Cisneros Group of Companies.
Headquartered in Buenos Aires, Argentina, and Miami Beach,
Florida, Claxson has a presence in all key Ibero-American
countries, including without limitation, Argentina, Mexico,
Chile, Brazil, Spain, Portugal and the United States.

CONTACT:  CLAXSON INTERACTIVE GROUP, INC.
          Press, Alfredo Richard, SVP, Communications
          +1-305-894-3588

          Investors, Jose Antonio Ituarte
          Chief Financial Officer, in Argentina
          +011-5411-4339-3700
          URL: http://www.claxson.com


PECOM ENERGIA: HSBC Approval Expected on $101M Bond Issue
---------------------------------------------------------
Argentine energy company Pecom Energia may receive the necessary
permissions to issue US$101 million of negotiable bonds from UK
bank HSBC within the next 15 days, reports Business News
Americas, citing a source from Pecom. The source also said that
HSBC is meeting with potential buyers to raise support for
Pecom's bonds issue, while Pecom Energia filed at the Buenos
Aires Stock Exchange on Wednesday for permission to issue the
bond.

The bonds, which come due in June 2011, pay an annual interest
rate of LIBOR plus 1 percent. The new issue will replace Pecom's
existing US$101mn loan from HSBC that expired in June this year.
The terms of agreement stipulates that Pecom Energia will repay
US$10 million of principal within the first few months of the
issue. The company will then pay the rest back in June 2011.

The devaluation of the Argentine peso had caused the energy
company's failure to repay the loan, which Pecom Ebergia had used
to buy 10 percent of Buenos Aires investment group Distrilec,
which owns a majority stake in local distributor Edesur.

Initially, Pecom proposed to have the loan converted into
Argentine pesos, but HSBC turned down the offer. A mediator was
called in to settle the issue.

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/

          HSBC HOLDINGS PLC
          Head Office
          10 Lower Thames Street
          London
          United Kingdom
          EC3R 6AE
          Tel  +44 (0)20 7260 0500
          Fax  +44 (0)20 7260 0501
          Web  http://www.hsbc.com/
          Contacts:
          Sir John Bond, Executive Chairman
          Baroness Dunn, Joint Deputy Chairman
          K. R. Whitson, Chief Executive
          D. J. Flint, Executive Director Finance


* S&P Lowers IBRD-Guaranteed Argentine Notes After Nonpayment
-------------------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that it had
lowered its ratings on both the Republic of Argentina's Series E
US$250 million notes (due October 15, 2003) and Series F US$250
million notes (due October 15, 2004) to 'CC' from 'CCC-'. The
ratings on both notes were also removed from CreditWatch, where
they had been placed on October 16, 2002.

The Series E and F notes are the fifth and sixth notes in a
transaction under the International Bank for Reconstruction &
Development's (World Bank) partial rolling reinstatable guarantee
program. When Argentina failed to make its US$250 million payment
on the Series D notes on October 15, 2002, the World Bank paid
investors under its guarantee. That guarantee would have been
reinstated and rolled to the series E notes had the World Bank
been reimbursed by Argentina within 60 days of its payment under
its guarantee. However, the World Bank announced on December 16,
2002, that it had not been reimbursed by Argentina within 60
days, and that, as a consequence, the guarantee was no longer
eligible for reinstatement and transfer first to the Series E and
subsequently to the Series F notes. As a result, Standard &
Poor's expects that these notes will be treated the same as
Argentina's other nondefaulted sovereign obligations, which are
currently rated 'CC,' and their ratings have therefore been
equalized.

ANALYSTS:  Larry Hays, Ph.D., New York (1) 212-438-7347
           Marie Cavanaugh, New York (1) 212-438-7343


* Finance Official Briefs Argentina's Payments to Lenders
---------------------------------------------------------
Argentina made several small payments to multilateral lenders in
recent days, reports Dow Jones, citing government officials.
Economy Ministry spokesman Armando Torres revealed on Wednesday
that the payments made were around US$20 million, adding that the
International Monetary Fund and the Inter-American Development
Bank were among those who received payments.

However, the report said, Torres did not clarify whether the
payments covered the entire amount Argentina had to pay in recent
days, nor did he divulge any more details.

Argentina's chances of receiving a new aid package from the IMF
had suffered a terrible blow when the country failed to meet its
financial obligations to the World Bank and IADB in the past few
days. The Dow Jones report indicates that the small payments the
country made may improve its stormy relationship with the IMF.

The government indicated that paying the multilaterals would
leave currency reserves at dangerously low levels. The country
has only US$10 billion of currency reserves while facing about
US$12 billion of debt maturing next year.

Earlier, officials said that the country would pay when the IMF
agreed to grant Argentina a loan accord . However, the accord
never materialized as the country had failed to meet the IMF's
demands.



=============
B O L I V I A
=============

BANCO SANTA CRUZ/ MERCANTIL: Sovereign Downgrade Affects Ratings
----------------------------------------------------------------
Following the downgrade of Bolivia's sovereign long-term local
currency rating to 'B+' from 'BB' and the revision of the outlook
on all sovereign ratings to negative from stable, Standard &
Poor's Ratings Services said Wednesday that it took rating
actions on Bolivian banks.

The long-term local currency counterparty credit rating on Banco
Santa Cruz S.A. was lowered to 'B+' from 'BB-'. Standard & Poor's
also affirmed the bank's 'B+/B' foreign currency counterparty
credit ratings. At the same time, Standard & Poor's affirmed its
'B+/B' local and foreign currency counterparty credit ratings on
Banco Mercantil S.A. Additionally, the outlook for both banks was
revised to negative from stable, reflecting the negative outlook
on the sovereign ratings.

"In the past five years, the operating environment in Bolivia has
been deteriorating, making banking more difficult in a country
that already poses big challenges to its financial institutions,"
said credit analyst Carina Lopez. In this context, bank ratings
remain constrained by the rating of the sovereign.

ANALYSTS:  Carina Lopez, Buenos Aires (54) 11-4891-2118
           Gabriel Caracciolo, Buenos Aires (54) 114-891-2100


CRE: S&P Lowers Local Currency Rating to 'B+' On Weakness
---------------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that it lowered
its long-term local currency sovereign credit rating on Bolivian
electric distributor Cooperativa Rural de Electrificaci˘n Ltda.
(CRE) to 'B+' from 'BB' following a similar rating action on the
Republic of Bolivia. CRE's 'B+' foreign currency credit rating is
affirmed. The outlook is changed to negative from stable.

The downgrade of the local currency rating of the Republic of
Bolivia reflects the prolonged economic weakness and political
constraints on President Gonzalez S nchez de Lozada's ability to
garner broad-based support to implement policy. At the same time,
the negative outlook reflects the government's limited room to
maneuver, given the challenges of satisfying a disenchanted
population amid economic stagnation, maintaining an effective
government coalition, and implementing multilateral demands for
additional market-oriented reform. For more details see Standard
& Poor's media release, "Bolivia Long-Term Local Currency Rating
Lowered to 'B+'; Outlook Revised to Negative," dated Dec. 18,
2002.

"The deteriorating credit quality of the sovereign directly
affects CRE, which is subject to both regulatory risk and the
challenges of operating in Bolivia's weakening economic
environment," said credit analyst Sergio Fuentes. "In fact, CRE's
major weakness is the relatively high regulatory risk, which is
evidenced by the government's intervention in the tariff-setting
mechanisms," he added.

The negative outlook reflects the more adverse economic
environment that could affect electric demand and collections,
challenging the company's ability to maintain a healthy financial
profile and operations at their current levels."

CRE is a cooperative that distributes electricity to
approximately 225,000 customers in the city of Santa Cruz and in
the rural communities throughout southeast Bolivia. CRE's 40-year
concession contract, which was signed in 1999, includes tariff
formulas based on energy, transmission, and distribution costs.

ANALYSTS:  Sergio Fuentes, Buenos Aires (54) 114-891-2131
           Marta Castelli, Buenos Aires (54) 114-891-2128


COTEL: Detecon to Drop 5-year Contract In March 2003
----------------------------------------------------
German telecoms consultancy Detecon, which won a five-year
management contract from the Bolivian government in May 2001 to
administer Cotel, said it would exit the La Paz cooperative in
March 2003, relates Business News Americas. Detecon, which
attributed the move to the very high cost of managing the telco,
said it has already completed negotiations with the government to
break off the contract.

Cotel CEO and Detecon consultant Jurgen Kurz will immediately
step down from his post. Chilean-German Heriberto Konn-Kruse will
assume caretaker responsibility of the firm until March.

Taking over Cotel has been quite a challenge for Detecon. The
board of directors that originally held control over Cotel never
recognized its authority and has continuously sought to thwart
the Germans' efforts for reform. Detecon also had to deal with
aggressive unions, which led a prolonged strike earlier in the
year that cost the Company an estimated US$660,000.

Cotel released a year-end report in July saying that it lost
BOB100 million (US$14million) for the Company's fiscal year ended
June 30, 2002, compared to a loss of BOB6.34 million the year
before. Kurz put the weak results down to a combination of
flawed, Worldcom-like reporting from past years, and policy
decisions made by local management prior to Detecon's takeover.

Cotel is Bolivia's largest fixed line operator, with about
165,000 lines in service. Detecon is a subsidiary of Deutsche
Telekom (NYSE: DTY).

CONTACT:  COOPERATIVA DE TELEFONOS DE LA PAZ-COTEL
          Avenida Mariscal Santa Cruz 980
          La Paz
          Bolivia
          Phone: 591 2373432
          Fax: 591 2310331
          Home Page: Homepage: http://www.cotel-bo.net/
          Contact: Jurgen Kurz

          DETECON
          Germaniastra? 18 - 20
          D-12099 Berlin
          Telephone : (+49-30) 7508-1100
          Fax : (+49-30) 7508-1444
          Home page: http://www.detecon.com/
          Contact:
          Karen Litters
          Phone: (0049) (0)6196-903-131
          Fax: (0049) (0)6196-903-465
          E-Mail: info@detecon.com

          AES CORP
          Investor Relations
          Kenneth R. Woodcock, 703/522-1315
          www.investing@aes.com



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

AES ELPA: Delays Loan Negotiation Deadline With BNDES
-----------------------------------------------------
AES Elpa, a Brazilian holding company controlled by US-based AES
Corp., was supposed to wrap up a deal with Brazil's national
development bank BNDES on December 16 on a US$85-million loan
that was due October 28. However, according to a report by Valor
Online, AES Elpa postponed the deadline, saying that it expects
to complete the negotiations within the next few days.

AES Elpa will have to renegotiate second and third installments
on the BNDES loan totaling US$500 million due in April and
October 2003, respectively.  AES Elpa provided its 31% stake in
Brazilian distributor Eletropaulo Metroplitana as a guarantee,
which includes 78% of voting shares.

BNDES reportedly agreed to take 30% of the principal and
renegotiate the remaining 70% in exchange for stronger
guarantees. But AES Elpa has so far rejected the offer.

The talks are possibly linked to the other negotiations on the
commercial paper. AES intended to use cash generated by
Eletropaulo to pay off the debts of AES Elpa and another holding
company, Transgas.

But according to market sources, Eletropaulo is yet to reach an
agreement with holders of US$100 million in commercial papers.
The debt should have been paid on December 4.

"I have the strong impression that they did not reach an
agreement," said one source, who preferred to remain anonymous.

The talks with these creditors are more complicated than other
debt renegotiations because the Euro commercial papers were sold
to a large and fragmented group of investors across Brazil,
Europe and the United States, the source said.

Other Eletropaulo loans and debts were with one or two companies,
or a syndicate of 15-30 banks, which although complicated is more
manageable than hundreds of investors in different countries, the
source said.

Eletropaulo is reported to have made three alternative proposals
for extending the debt, all of which would pay about 15% of the
principal up front and reschedule the remaining 85% to be paid
back in 2003 and 2004.

CONTACT:  ELETROPAULO METROPOLITANA
          Avenida Alfredo Egidio de Souza Aranha 100-B,
          13 andar 04726-270 San Paulo
          Brazil
          Phone: +55-11-548-9461, +55 11 5696 3595
          Fax: +55-11-546-1933
          URL: http://www.eletropaulo.com.br
          Contacts:
          Luiz D. Travesso, Chairman and President
          Orestes Gonzalves Jr., VP Finance/Investor Relations


ESCELSA: UBS Warburg Announces Pricing of C-Bond
------------------------------------------------
UBS Warburg announced Wednesday that the price of the C-Bond has
been calculated as 63.6875% pursuant to EDP - Electricidade de
Portugal S.A.'s ("EDP") previously announced offer to purchase
and consent solicitation relating to any and all of Escelsa -
Espirito Santo Centrais Electricas, S.A. ("ESCELSA") 10% Senior
Notes due 2007 (the "Notes"). The consent solicitation expired
on, December 5, 2002, at 5:00 p.m., New York time. The tender
offer will expire at 11:59 p.m., New York time, on Thursday,
December 19, 2002 (the "Expiration Date"), unless it is extended
or earlier terminated.

If EDP accepts the tendered Notes for payment, a holder of Notes
who has tendered Notes and delivered related consents prior to
the expiration of the consent solicitation will receive the sum
of (i) the price of the 8.00% Brazil Capitalization Bond (C-Bond)
due April 15, 2014 (pls. refer to Note 1), being 63.6875% plus
(ii) 5% of the face value of the Notes tendered, for
consideration of 68.6875% of the face value of the Notes
tendered.

Although the consent solicitation has expired, additional Notes
may still be tendered (without related consents) prior to the
Expiration Date. If EDP accepts those tendered Notes for payment,
a holder of Notes who has tendered Notes will receive the sum of
(i) the price of the 8.00% Brazil Capitalization Bond (C-Bond)
due April 15, 2014 (pls. Refer to Note 1), being 63.6875% plus
(ii) 3% of the face value of the Notes tendered, for
consideration of 66.6875% of the face value of the Notes
tendered.

EDP commenced the offer to purchase and consent solicitation on
November 20, 2002, pursuant to the offer to purchase and consent
solicitation statement. This press release is not an offer to
purchase, a solicitation of an offer to sell or a solicitation of
consents with respect to the Notes. The offer to purchase and
consent solicitation was made only by EDP's offer to purchase and
consent solicitation statement dated November 20, 2002.

Additional information

UBS Warburg LLC is acting as the Dealer Manager for the Offer and
Consent Solicitation. The Offer and Consent Solicitation are
being made pursuant to an Offer to Purchase and Consent
Solicitation Statement and related Letter of Transmittal and
Consent, which more fully set forth the terms of the Offer and
Consent Solicitation. Additional information concerning the terms
of the Offer, tendering of Notes, and conditions to the Offer and
Consent Solicitation, may be obtained from Ralph Cimmino or David
Knutson at UBS Warburg LLC by dialing from within the United
States (888) 722-9555 or +1 (203) 719-8035/1575. Copies of the
Offer to Purchase and Consent Solicitation Statement and related
documents may be obtained from DF King & Co., the Information
Agent, at 77 Water Street, 20th Floor, New York, NY, 10005 by
dialing from within the United States (800) 714-3305 or +1 (212)
493-6952. Additional information is also available on ESCELSA's
website at http://www.escelsa.com.br

Note 1:

The price of the 8.00% Brazil Capitalization Bond (C-Bond) due
April 15, 2014 has been calculated by the Dealer Manager using an
average bid-side price for the named security based on prices
appearing on the Tullet, Eurobroker and Garban screens, or any
other recognized quotation source selected by the Dealer Manager
in its sole discretion if these pages are unavailable or
manifestly erroneous, as of 3:00 p.m. New York City time,
December 17, 2002.

CONTACT:  ELECTRICIDADE DE PORTUGAL S.A.
          David Knutson of UBS Warburg, +1-203-719-1575
          URL: http://www.escelsa.com.br


VARIG: Rescinding Leas Contract on 22 Embraer Planes
----------------------------------------------------
Viacao Aerea Rio-Grandense SA, Latin America's biggest carrier,
informed the development bank BNDES (Banco Nacional de
Desenvolvimento Economico e Social) that it will rescind the
leasing contact of 15 ERJ-145 and seven Brasilia aircraft
manufactured by Embraer. Negotiations to save the deal are
underway but a looming complication casts plenty of doubt: Varig
did not pay the past two leasing contracts. BNDES is the
operations guarantor between Varig and Embraer.

Varig, which hasn't made a profit since 1997, has been reducing
its fleet and negotiating with creditors to postpone debt
payments to avert bankruptcy. The Company, which is carrying some
US$900 million of debt, has also asked the government for a
capital injection of as much as US$400 million. Varig's books
show negative shareholder's equity of about BRL2 billion
(US$567.5 million).

CONTACT:      VARIG (Viacao Aerea Rio-Grandense, S.A.)
              Rua 18 de Novembro No. 800, Sao Joao
              90240-040 Porto Alegre,
              Rio Grande do Sul, Brazil
              Phone: (51) 358-7039/7040
                     (51) 358-7010/7042
              Fax: +55-51-358-7001
              Home Page: www.varig.com.br/english/
              Contacts:
              Dorival Ramos Schultz, EVP Finance and CFO
              E-mail: dorival.schultz@varig.com.br

              Investor Relations:
              Av. Almirante Silvio de Noronha,
              n  365-Bloco "B" - s/458 / Centro
              Rio de Janeiro, Brazil

              KPMG Brazil
              Belo Horizonte
              Rua Paraba, 1122
              13th Floor
              30130-918 Belo Horizonte MG
              Telephone 55 (31) 3261 5444
              Telefax 55 (31) 3261 5151
                       or
              Brasilia
              SBS Quadra 2 BL A N 1
              Edificio Casa de Sao Paulo SL 502
              70078-900 Braslia - DF
              Telephone 55 (61) 223 2024
              Telefax 55 (61) 224 0473

              BAIN & CO
              Primary Contact: Wendy Miller
              Two Copley Place, Boston, MA 02116
              USA
              Phone: +1-617-572-2000
              Fax: +1-617-572-2461
              Email: miles.cook@bain.com
              URL: http://www.bain.com


* Brazil Gets $3.1B Second Installment of IMF Loan
--------------------------------------------------
Brazil will be receiving the second installment of US$3.1 billion
on its US$30.7 billion aid package from the International
Monetary Fund, reports Bloomberg News in its Wednesday edition,
adding that the rest of the loan will be disbursed next year.

The aid is aimed at stabilizing the country as its new president
takes over on New Year's Day. The loan also seeks to stem the
economic crisis facing Latin America after Argentina defaulted on
US$95 of bonds in December last year.

Brazil earned the aid package after meeting the requirements on
inflation and government spending set by the IMF. Brazil's
foreign lenders had reduced credit line by 20 percent, since
August.

The loan depends on the government's ability to keep a budget
surplus of about US$19.2 billion, at least 3.75 percent of its
GDP. The country's central bank, in order to stabilize prices,
raised the benchmark overnight interest rate by 3 percentage
points to 25 percent. The raise was the third since October.

The local currency lost 34 percent of its value against the
dollar this year. According to the report, the Bovespa stock
index has declined 48 percent, and the benchmark bond has fallen
almost 20 percent on investor concern the government may default
on US$300 billion in total debt.

For every 1 percentage-point decline in its currency, Brazil's
payments on its debts would increase by US$1.4 billion, as half
of its debts are tied to the dollar. The currency decline also
raised the cost of imports, pushing consumer price inflation to a
six-year high, said the report. Inflation is expected to be 12
percent, year-end.

The IMF had loaned Brazil a total of US$63 billion since 1998,
and billions more to Uruguay. It is also considering granting aid
to Argentina and Colombia.



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

AES GENER: Opposes CNE Proposal to Install Emergency Turbines
-------------------------------------------------------------
AES Corporation's Chilean unit AES Gener is opposed the proposal
of energy regulator CNE to install emergency turbines early next
year, reports local daily Estrategia. CNE's proposal is aimed at
avoiding energy shortages in the country in 2004.

A source from AES Gener was quoted by the report saying that
emergency generators are not the solution to low investment in
generation and transmission. The source added that other "more
efficient" solutions are available, such as fixing the node
price. The node price is part of the fast-track power bill now
before congress.

Business News Americas reported that the installation of
emergency turbines would not cause more regulatory uncertainty.
It would also set a bad precedent for the industry because no
long-term solution is made to address the long-term supply
problem.

Moreover, the emergency turbines would only speed up the
consumption of water reservoirs and delay the launching of
operations of new planst, said the source.

The area between the city of Temuco and the island os Chiloe in
southern Chile is most likely to feel the effects of the shortage
because of the delay in building the transmission line linking
Charrua and Temuco.

CONTACT:  AES GENER S.A
          Head Office
          3rd Floor
          Mariano Sanchez Fontecilla
          310
          Santiago
          Chile
          Tel  +56 2 686 8900
          Fax  +56 2 686 8991
          Web  http://www.gener.cl
          Contact:
          Robert Morgan, Chief Executive


ENDESA CHILE: Property Owner Agrees To Critical Land Swap
---------------------------------------------------------
Empresa Nacional de Electricidad SA, Chile's biggest generator,
finally got one of the owners of a land to agree to cede rights
to a land to be flooded by the Company's US$570-million
hydroelectric plant's dam, reveals Bloomberg.

According to Endesa Chile, Nicolasa Quintreman, of the country's
Pehuenche tribe, agreed to swap 3.8 hectares (9.4 acres) of land
that will be submerged in exchange for 77 hectares of land in
another area plus an undisclosed payment amount.

Endesa Chile, a unit of Endesa SA of Spain, is yet to strike
agreements with five other landowners, including with Berta
Quintreman, Nicolasa's sister, a company spokesman said.

"This can be expensive for Endesa," said Mariela Iturriaga, head
of research at BBVA Corredores de Bolsa BHIF.

The project may be hampered by families that refuse to leave
their land because under a Chilean indigenous rights law, the
Company can't flood the land without their permission, warned the
lawyers for Pehuenche families. Even so, Endesa Chile's former
chairman, Alfredo Llorente, said at a news conference in March
that the law allowed a commission to calculate the price to be
paid to landowners who refused to reach an agreement with the
company. Executives reiterated that point in a recent conference
call with analysts, Iturriaga said.

Endesa is looking to complete the project in 2004 at a time when
its earnings have dropped because of Latin America's sluggish
energy demand and weakening currencies.

CONTACT:  EMPRESA NACIONAL DE ELECTRICIDAD SA
          Santa Rosa 76
          Santiago, Chile
          Phone: +56-2-630-9000
          Fax: +56-2-635-4720
          http://www.endesa.cl
          Contacts:
          Pablo Yrarrazaval Valdes, Chairman
          Luis Rivera Novo, Chairman
          Hector Lopez Vilaseco, CEO



===================================
D O M I N I C A N   R E P U B L I C
===================================

TRICOM: Announces Debt Exchange Offer, Details to Follow
--------------------------------------------------------
TRICOM (NYSE: TDR), a regional integrated telecommunications
provider in the U.S., Caribbean and Central America, announced
Wednesday that, consistent with its previously announced plan to
extend the company's debt profile and strengthen the company's
capital structure, it has filed a registration statement with the
Securities and Exchange Commission in connection with a proposed
exchange offer and consent solicitation with respect to the $200
million aggregate outstanding principal amount of its 11-3/8%
Senior Notes due 2004.

The company intends to offer holders of the existing notes the
opportunity to exchange their existing notes for new notes and
cash or warrants to purchase the company's ADSs representing
shares of its Class A common stock. The company also intends to
solicit a consent from the holders of the outstanding 11-3/8%
Senior Notes to amend certain of the covenants contained in the
indenture governing those notes. The terms of the exchange offer,
including interest rate, maturity of the new notes and the amount
of the cash payment and warrants to be issued, have not yet been
finalized.

A registration statement relating to the exchange offer and
consent solicitation has been filed with the Securities and
Exchange Commission, but has not yet become effective. This press
release is not an offer to sell or the solicitation of an offer
to buy any of the securities to be issued in the exchange offer
described above. The company expects to commence the exchange
offer promptly after the registration statement is declared
effective by the Securities and Exchange Commission.

About TRICOM

TRICOM, S.A. is a regional integrated telecommunications provider
in the U.S., Caribbean and Central America. In the Dominican
Republic We offer local, long distance, mobile, cable television
and broadband data transmission and Internet services. Through
TRICOM USA, we are one of the few Latin American based long
distance carriers that is licensed by the U.S. Federal
Communications Commission to own and operate switching facilities
in the United States. Through our subsidiary, TCN Dominicana,
S.A., we are the largest cable television operator in the
Dominican Republic based on our number of subscribers and homes
passed. We also offer digital mobile integrated services
including two-way radio and paging services in Panama using
iDEN(R) technology.

CONTACT:  TRICOM, S.A.
          Miguel Guerrero of Tricom Investor Relations
          +1-809-476-4044, +1-809-476-4012
          investor.relations@tricom.net
          URL: http://www.tricom.net



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

CAESS/EEO: Continued Weakness Prompts Fitch's Mixed Review
----------------------------------------------------------
The Fitch Centroamerica unit of credit ratings agency Fitch
completed the review on its national scale ratings on two El
Salvadorian distribution subsidiaries of US power company AES,
reports Business News Americas. According to Business News
Americas, Fitch downgraded Compania de Alumbrado Electrico de San
Salvador S.A. de C.V. (CAESS) to A- slv from A slv and confirmed
Empresa Electrica De Oriente S.A. de C.V. (EEO) at A slv.

The ratings agency explained that the downgrade on CAESS reflects
its deteriorating financial flexibility resulting from the
payment of a dividend to minority shareholders, the loss of
credit lines, delayed subsidy receipts from the government, an
increase in overdue customer accounts, and deteriorating sales,
gross margins and EBITDA.

Meanwhile, the confirmation of EEO's ratings is based on its
financial flexibility, the behavior of its operating income and
EBITDA, as well as the predicted weakness of cash flows in 2003
and 2004.

Fitch will monitor debt renegotiation at AES and the evolution of
El Salvadorian regulations with regard to new rates, Fitch said,
adding that the technical help given by AES to EEO has been
important.

EEO has good levels of liquidity, although it has problems with
late paying clients, principally from the public sector, Fitch
said.



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

CABLE & WIRELESS: Squabble With Digicel Could Turn Vicious
----------------------------------------------------------
Digicel Chairman Denis O'Brien said that a "vicious" war could
break out between his company and Cable & Wireless (C&W) over
access to the Caribbean market. According to Mr. O'Brien, his
company is pushing to become market leader in Jamaica, with its
initial US$100 million investment on the way to being quadrupled.

C&W's success in the Jamaican market has spurred Digicel to
expand its services across the Caribbean. However, Digicel chief
executive, Seamus Lynch, said that C&W is stalling its agreement
to an interconnection between the two companies' systems. C&W
denies the allegations, saying that it is carrying out its
present plans at a reasonable pace.

According to the report, the interconnection would allow C&W
customers to communicate with Digicel customers. The
telecommunications regulator in St. Vincent National
Telecommunications Regulatory Commission (NTRC) has threatened to
impose an interim interconnection agreement if the issue is not
resolved by December 18.

Earlier, C&W Jamaica mobile division manager Patrick King claimed
that Digicel had misled the public by overstating its market
share in the region.

CONTACT:  Cable & Wireless PLC
          Head Office
          124 Theobalds Road
          London
          England
          WC1X 8RX
          Tel  +44 (0)20 7315 4000
          Fax  +44 (0)20 7315 5000
          Web  http://www.cw.com
          Contacts:
          Sir Ralph Robins, Non Executive Chairman
          Sir Winfried W. Bischoff, Non Executive Deputy Chairman
          Graham M. Wallace, Chief Executive
          Robert E. Lerwill, Executive Director Finance



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

AHMSA: Scant Bankruptcy Laws Delay Repayments
---------------------------------------------
Orlando Loera, who represents Bank of America Corp. - one of the
three largest creditors of Altos Hornos de Mexico SA - admitted
difficulty settling debts with Mexico's largest steelmaker.
Getting money out of AHMSA, as the company is known, to pay the
debt owed to the bank and more than 70 other banks is a challenge
that doesn't get easier under local rules, says Bloomberg.

According to Mr. Loera, local bankruptcy laws provide little
protection and recourse to creditors. For example, the law has
already allowed AHMSA chief executive, Alonso Ancira, to back out
of three separate accords previously reached with bondholders.

"This is gummed up in a legal procedure that will take a decade
at least," said Loera, who heads Bank of America's Latin American
special assets department. "I don't see a way we can do this
quicker."

AHMSA stopped paying its US$1.85 billion debt more than three
years ago. Subsequently the Company's controller, GAN, has
submitted a restructuring proposal offering banks a 40% stake in
the AHMSA in exchange for writing off US$1.3 billion of the debt.
The plan would reduce the Company's liabilities to about US$500
million, as well as extending maturities to 15 years from 9
years.

But Mexican banks BBVA-Bancomer and Banamex-Citibank, which hold
about 14% of AHMSA's debt, rejected the proposed plan. According
to Juan Carlos Pilgram, deputy director of Banamex's
restructuring division, the creditors want 98%, not 40%, of AHMSA
equity to swap their US$1.3 billion in debt.

"The new plan practically changes everything that had been signed
in May 2001," said Mr. Pilgram.

The previous restructuring plan signed in 2001 proposed a US$530
million capitalization in exchange for 40% of AHMSA shares.

"Now they are proposing that we capitalize what we were going to
have as sustainable debt. In practice they are turning upside
down the proposal as if the company this year were worth double,"
Pilgram added.

For three years, AHMSA and lenders were in talks to restructure
debt after the Company ran into deep trouble following a drop in
world steel prices resulting from the 1998 Asian crisis and an
excess of steel products in the market.

Creditors walked away from talks earlier this year saying AHMSA
management -- chairman Xavier Autrey and chief executive Alonso
Ancira -- had no desire to strike a deal.

CONTACT:    AHMSA
            Prolongacion B. Juarez s/n,
            Monclova , Coahuila 25770
            Mexico
            http://www.AHMSA.com
            Phone: +52 86 33 81 72
            Fax: +52 86 33 65 66
            Contacts:
            Alonso Ancira Elizondo, CEO, Vice Chairman, Pres./CEO
            Jorge Ancira Elizondo, Chief Financial Officer
            Manuel Ancira Elizondo, Chief Operating Officer



SAVIA: Seminis Forms Special Committee to Review Buyout Proposal
----------------------------------------------------------------
Seminis, Inc. (Nasdaq: SMNS), the world's largest developer,
producer and marketer of vegetable and fruit seeds, on Wednesday
formed a special committee consisting of the independent
directors in response to the proposed transaction announced by
Savia, S.A. de C.V., Seminis' majority stockholder, and Fox Paine
& Company, LLC. Under the proposed transaction, Fox Paine and
certain Savia related parties will acquire all of the outstanding
shares of Seminis. The special committee has been empowered to
evaluate the proposed transaction and its fairness and will make
a recommendation to the full Board of Directors.

About Seminis

Seminis Inc. is the largest developer, producer and marketer of
vegetable seeds in the world. The company uses seeds as the
delivery vehicle for innovative agricultural technology. Its
products are designed to reduce the need for agricultural
chemicals, increase crop yield, reduce spoilage, offer longer
shelf life, create better tasting foods and foods with better
nutritional content. Seminis has established a worldwide presence
and global distribution network that spans 150 countries and
territories.

All statements in this press release other than statements of
historical facts are "forward looking" statements, including
without limitation statements regarding the company's financial
position, business strategy, plans, and objectives of management
and industry conditions. Although the company believes that the
expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will
prove to be correct. The following factors, among others, may
affect the company's actual results and could cause such results
to differ materially from those expressed in any forward-looking
statements made by or on behalf of the company: competitive
factors, agribusiness risks, governmental and economic risks
associated with foreign operations, commercial success of new
products, proprietary protection of and advances in technology,
possible need for additional financing as well as the ability of
the company to successfully integrate recent acquisitions and its
management information systems and controls. Further information
on the factors that could affect the company's financial results
is contained in the company's S-1 registration statement dated
June 29, 1999, and filed with the Securities and Exchange
Commission.

CONTACT:  Enrique Osorio
          Tel: +1-805-918-2233
          Email: enrique.osorio@seminis.com
               or
          Patrick Turner
          Tel: +1-805-918-2201
          Email: patrick.turner@seminis.com

          Web site:  http://www.seminis.com



=======
P E R U
=======

WIESE SUDAMERIS: Acquisition By Chilean Group Imminent
------------------------------------------------------
Chile's Corp Group is close to buying IntesaBci SpA's Peruvian
unit, Banco Wiese Sudameris. Italy's largest bank is in the
process of exiting Latin America after posting losses in four of
the last five quarters, Dow Jones reports, citing an unnamed
source.

According to individuals close to the deal, bank directors told
high-level Banco Wiese Sudameris officials on Wednesday that
"negotiations were almost completed and the only thing lacking
was to conclude certain conditions that should take a few days."

In a related news item, another source, who also declined to be
identified, said that the bank has already been sold to Chile's
Corp Group.

Reports and sources said that former finance minister, Pedro
Pablo Kuczynski, and JP Morgan Chase & Co executive, Susana de la
Puente, are leading the negotiations.

Banco Wiese Sudameris holds a 20.03% market share in terms of
loans and a 17.35% market share in term of deposits. As of the
end of October, its past-due loan ratio was 13.57%, over 50%
higher than the 8.15% average for the total banking system.

Banco Wiese Sudameris said this week that its board of directors
approved a previously announced US$300-million capital increase.
Before that capital injection, according to a government
official, the bank's foreign shareholders had invested about
US$560 million since the 1999 merger that created the bank.

Banco Wiese Sudameris is the result of the September 1999 merger
of Banco Wiese and Banco de Lima-Sudameris. Prior to its
acquisition, Banco Wiese had been experiencing severe liquidity
problems since the second half of 1998.

CONTACT:  IntesaBci
          Investor Relations:
          Piazza della Scala, 6
          20121 - Milano
          Fax: (39) 02 8850 2587
          E-mail: investorelations@intesabci.it
          Contacts:
                Andrea Tamagnini, Tel: (39) 02 8850 3180
                Marco Delfrate, Tel: (39) 02 8850 2622
                Cristina Paltrinieri, Tel: (39) 02 8850 3571
                Carla De Alberti, Tel: (39) 02 8850 3159
                Giorgio Grossi, Tel: (39) 02 8850 3189
                Anna Gervasoni, Tel: (39) 02 8850 3466
                Maria Vittoria Buscicchio, Tel: (39) 02 8850 7114
                Manuela Banfi, Tel: (39) 02 8850 3273

          BANCO WIESE SUDAMERIS
          Dionisio Derteano, 102 Esquina con Miguel Seminario
          Lima 27, Peru
          Phone: +51-1-211-6000
          Fax: +51-1-440-7945
          Website: http://www.bws.com.pe
          Luis F. Wiese de Osma, Chairman
          Eugenio Bertini, CEO
          Carlos Palacios Rey, President, Executive Committee



=================
V E N E Z U E L A
=================

CERRO NEGRO: Fitch Places Ratings On Watch Negative
---------------------------------------------------
Fitch Ratings placed Cerro Negro Finance, Ltd.'s (Cerro Negro)
senior secured debt rating 'BB+' on Rating Watch Negative. The
following debt securities are affected:

--US$200 million bonds due 2009;
--US$350 million bonds due 2020;
--US$50 million bonds due 2028.

(detailed explanations follow below)


FERTINITRO FINANCE: Fitch Puts `CCC' Debt On Watch Negative
-----------------------------------------------------------
Fitch Ratings placed FertiNitro Finance Inc.'s (FertiNitro)
senior secured debt rating 'CCC' on Rating Watch Negative. The
action affects US$250 million senior bonds due 2020.

(detailed explanations follow below)


PETROLERA HAMACA: 'BB+' Debt Rating on Watch Negative
-----------------------------------------------------
Fitch Ratings placed Petrolera Hamaca, S.A.'s (Hamaca) senior
secured debt rating 'BB+' on Rating Watch Negative. The action
affects total senior project loans of US$1.1 billion, consisting
of:

--US$627.8 million senior agency loan due 2018;
--US$470 million senior bank loan due 2015, borrowed on a several
(not joint) basis 30% by Corpoguanipa, S.A., a subsidiary of
PDVSA, and 70% by Hamaca Holdings L.L.C.

(See notes below for explanations.)


SINCRUDOS DE ORIENTE: Ratings On Watch Negative
-----------------------------------------------
Fitch Ratings placed Sincrudos de Oriente Sincor, C.A.'s (Sincor
project) senior secured debt rating 'BB+' on Rating Watch
Negative. The action affects US$1.2 billion senior bank loans
borrowed by the sponsors of Sincor Finance Inc.

(See notes below for explanations.)


PETROZUATA FINANCE: Fitch Places Ratings On Watch Neg.
------------------------------------------------------
Fitch Ratings placed Petrozuata Finance Inc.'s (Petrozuata)
senior secured debt rating 'BB+' on Rating Watch Negative. The
following debt securities are affected:

--US$300 million series A bonds due 2009;
--US$625 million series B bonds due 2017;
--US$75 million series C bonds due 2022.

Petrozuata is owned 50.1% by a ConocoPhillips subsidiary and
49.9% by a PDVSA subsidiary.

(detailed explanations follow below)


FITCH NOTES: Due to the heightened uncertainty related to the
prolonged political crisis and national strike in Venezuela,
Fitch Ratings has placed the debt securities of the five projects
on Rating Watch Negative. The Rating Watch Negative status
reflects the inability of these projects to continue normal
operations due to suspension of critical raw materials and
feedstock supply from Petroleos de Venezuela S.A. (PDVSA),
related entities and third party suppliers. At the five projects
domiciled in Venezuela--the four strategic associations and
FertiNitro--operations have been reduced to near shutdown due to
the lack of gas supply from PDVSA and interruptions to
Venezuela's oil exports.

Petrozuata, Cerro Negro, Sincor and Hamaca are involved in the
development of the country's extra heavy crude oil reserves.
FertiNitro is involved in the production of ammonia and urea and,
unlike the heavy oil projects, relies exclusively on natural gas
from PDVSA as its principal feedstock. Debt holders at each
project solely rely on the ability of the project to generate
sufficient cash flows from operations to meet scheduled debt
service obligations. Each project's revenues are largely derived
from the sale of syncrude exports at the strategic associations
and the sale of ammonia and urea exports at FertiNitro.

Fitch believes that the supply interruptions experienced by these
projects will remain in place as long as the national strike that
began on December 2 continues unabated. The oil sector's
overwhelming support for the three week-old strike has
effectively shut down Venezuela's hydrocarbon industry,
disrupting crude oil and derivative product export flows and
accentuating the deep polarization that has characterized the
nation's society in recent months. Although Fitch believes that
the Venezuelan sovereign's capacity to meet its foreign currency
debt service compares favorably to similarly rated sovereigns,
its willingness to service its obligations could come under
increasing pressure if the strike were to continue to disrupt oil
exports for an extended period of time. Fitch maintains
Venezuelan sovereign ratings of 'B' for the long-term foreign
currency rating and 'B-' for the long-term local currency rating,
both of which have a negative rating outlook.

The assigned ratings of the heavy oil projects domiciled in
Venezuela have been higher than the sovereign rating of Venezuela
given the legal and structural features of the related financings
that partially mitigate sovereign risk concerns. Fitch believes
that the sovereign's potential inclination to interfere in these
types of projects is a function of the political and economic
environment within the country. While the four heavy oil
projects' structure and strategic importance provide substantial
disincentives to the Venezuelan government to interfere, the
potential for such actions would be heightened should the
sovereign's credit quality deteriorate further.

Petrozuata is owned 50.1% by a ConocoPhillips subsidiary and
49.9% by a PDVSA subsidiary. Cerro Negro is owned 41.67% by an
ExxonMobil subsidiary, 41.67% by a PDVSA subsidiary and 16.67% by
a Veba Oel subsidiary. Sincor is owned 47% by a TOTALFinaElf
subsidiary, 38% by a PDVSA subsidiary and 15% by a Statoil
subsidiary. Hamaca is owned 40% by ConocoPhillips subsidiary, 30%
by ChevronTexaco subsidiary, and 30% PDVSA subsidiary. All four
projects are involved in the development of Venezuela's extra
heavy crude oil reserves.

FertiNitro is owned 35% by a Koch Industries, Inc. subsidiary,
35% by Petroquimica de Venezuela, S.A. (Pequiven), a wholly-owned
subsidiary of PDVSA, 20% by a Snamprogetti S.p.A. subsidiary, and
10% by a Cerveceria Polar, C.A. (Polar) subsidiary.

CONTACT: Caren Y. Chang 1-312-368-3151, Chicago, or Alejandro
Bertuol 1-212-908-0393, New York, or Carlos Fiorillo +58-212-286-
3356, Caracas.

MEDIA RELATIONS: James Jockle 1-212-908-0547, New York.


CITGO: Strike Prompts Moody's Review For Possible Downgrade
-----------------------------------------------------------
Venezuela's Citgo Petroleum Corp. may receive a ratings downgrade
from Moody's Investors Service on concerns over the reduction of
oil shipment from the country resulting from the continues
strike. The said strike had lowered oil production in Argentina
by 92 percent, according to its leader. The strike seeks the
resignation of president Hugo Chavez, or have him call for early
elections.

A report from Bloomberg News indicated that the ratings agency is
currently reviewing Citgo's debt rating of Baa2, the second-
lowest investment grade. The report added that a lower debt
rating result in higher interest rates and will increase a
company's difficulties in borrowing money.

A statement from Moody's said that the review will focus on the
financial and operational impact of crude-supply disruptions to
Citgo's refining and fuel-selling operations, including the
refiner's ability to find substitutes for Venezuelan crude.

Citgo is owned by Venezuelan state oil company Petroleos de
Venezuela SA.

CONTACT:  Petroleos de Venezuela SA
          Head Office
          Apdo 169
          Avenida Libertador La
          Campina
          Caracas
          Venezuela
          1010-A
          Tel  +58 212 708 4111
          Fax  +58 212 708 4661
          Homepage: http://www.pdvsa.com/
          Contact:
          Ali Rodriguez Araque, Chairman
          Jorge Kamkoff, Joint Vice Chairman
          Jose Rafael Paz, Joint Vice Chairman




               ***********


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.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
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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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* * * End of Transmission * * *