TCRLA_Public/030606.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, June 6, 2003, Vol. 4, Issue 111

                           Headlines


A R G E N T I N A

CORREO ARGENTINO: First Official Financial Results Show Loss
CTI MOVIL: Reports $1.38B in Losses
DIRECTV LA: Court Okays $300M DIP Loan From Hughes
SIDERAR: Siderperu Expects To Sign Advisory Deal Next Week
TELECOMA ARGENTINA: Concludes Debt Buyback Offer


B E R M U D A

ADVANTAGE (BERMUDA) FUND: Calls Creditors to First Meeting
TYCO INTERNATIONAL: Fitch Leaves Ratings Unchanged
VC ADVANTAGE FUND: First Reorganizatinal Meeting Announced


B R A Z I L

ALCOA ALUMINIO: Fitch Revises FC Rating Outlook to Positive
ARACRUZ CELULOSE: Fitch Ups Foreign Currency Rating Outlook
AMBEV: Foreign Currency Rating Outlook Revised to Positive
CEMIG: Board Appoints New Executive Vice-President
COMPANHIA PETROLIFERA: Fitch Improves `B' FC Rating Outlook
COPEL: Injunction Halts Araucaria Arbitration Proceedings
CST: Fitch Bumps Currency Outlook to Positive
CSN: Fitch Changes Foreign Currency Rating Outlook
MRS LOGISTICA: FC Rating Outlook Revised to Positive By Fitch
PETROBRAS: Fitch Changes `B' FC Rating Outlook
RIPASA CELULOSE: Fitch Revises FC Rating Outlook to Positive
SADIA S.A.: Fitch Changes Foreign Currency Rating Outlook
SAMARCO: FC Rating Outlook Revised to Positive By Fitch
TELE NORTE LESTE: Fitch Changes `B' FC Rating Outlook
TELEMAR: Fitch Comments On Corporate Structure Change
TRIKEM S.A.: Fitch Improves Foreign Currency Rating Outlook


C H I L E

TELEFONICA CTC: Proposes Extraordinary Dividend to Shareholders


M E X I C O

GRUPO MINSA: Restores Financial Health
MEXICANA DE AVIACION: Executive Denies Potential Bankruptcy
PEMEX: Closes $750M Bond Issue in International Markets
* Mexico: Fitch Assigns 'BBB-` to EUR750 Mln In Global Bonds


U R U G U A Y

ANCAP: S&P Upgrades to 'B-' Following Upgrade on Uruguay


     - - - - - - - - - -

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

CORREO ARGENTINO: First Official Financial Results Show Loss
------------------------------------------------------------
For the first time since it was awarded the concession of postal
services in Argentina, the firm Correo Argentino revealed its
financial results on June 3, 2003. The Company announced it lost
ARS78 million (US$27.37 million at the current exchange rate)
during 2002 and said it accrued a loss of ARS320 million
(US$112.28 million) since October 1997.

Correo Argentino, which started a formal restructuring proceeding
two years ago, wants to renegotiate its concession contract with
the government and is calling for the issue of a new law to
change its fixed ARS101 million annual fee for a percentage over
the invoicing.

The Company has not been paying the fee and accrued a ARS400-
million debt with the State.


CTI MOVIL: Reports $1.38B in Losses
-----------------------------------
Argentine cellular telephony firm CTI Movil, which has been under
investment holding company Coinvest's control since 2002,
announced it accrued losses of ARS3.93 billion (US$1.38 billion)
and a working capital deficit of ARS3.49 billion, while its nets
assets are a negative figure of ARS2.05 billion.

In the first quarter of 2003, CTI registered a profit of
ARS318.08 million, amount that is considered low in comparison
with the accrued losses.

The Company said it is carrying out a plan destined to
counterbalance the negative impact caused by the country's
macroeconomic situation and is analyzing its status of
indebtedness in order to restructure its financial debt.

CTI has been in default since early 2002 and its liabilities
amount to some US$1.05 billion. Its major creditor is Lucent
Technologies, with US$486.7 million. The rest of the debt is owed
to bondholders (US$250 million); a group of banks headed by
Citibank (US$210 million); and Siemens, among others (US$50
million).


DIRECTV LA: Court Okays $300M DIP Loan From Hughes
--------------------------------------------------
The U.S. Bankruptcy Court in Wilmington, Delaware, gave DirecTV
Latin America LLC approval of a US$300 million debtor-in-
possession loan from majority owner Hughes Electronics Corp..
The loan will be used to finance the Company until it emerges
from Chapter 11 bankruptcy, the AP reveals.

According to Jannice Reyes, spokeswoman for the satellite
broadcaster, some minor changes were made to the agreement that
clarify and modify Hughes' rights, should DirecTV Latin America
default on the loan.

Hughes of El Segundo, Calif., made the changes to address
concerns from its unsecured creditors committee.

Fort Lauderdale, Florida-based DirecTV Latin America filed for
Chapter 11 in March, listing assets of US$600 million and
liabilities of US$1.6 billion.

Soon after the bankruptcy filing, the court gave interim approval
for the Company to borrow US$30 million on the Hughes credit
line, pending the final approval. DirecTV Latin America said in
its request for the interim loan that without the financing, it
would be forced to cease operations.

The satellite-television company already owes Hughes about
US$1.35 billion. In return for the DIP loan, Hughes received
first-priority liens and security interests in all of DirecTV
Latin America's property.


SIDERAR: Siderperu Expects To Sign Advisory Deal Next Week
----------------------------------------------------------
Peru's biggest steel firm Siderperu has found a technical adviser
that will help it strengthen its operations, as it struggles to
deal with slumping sales due to imports of low-priced steel
products. Citing a Siderperu executive, Reuters reports that the
Company will sign an agreement with Argentine steel firm Siderar
this week.

"A deal has been reached ... Siderar will be our technical
adviser, but not our operator," Siderperu's director Arturo
Torres said, in response to reports that Siderar, part of
Argentina's huge Techint group, could take over operations for
the Peruvian firm.

Torres said a group of experts from Siderar would work with
executives at Siderperu to improve production after analyzing its
current activities

"This will be a 90- to 120-day job," he said.

Siderperu's sales fell last year to US$110 million from an
average of US$122 million in previous years. However, the Company
had improved its margin as it cut costs, the executive said.


TELECOMA ARGENTINA: Concludes Debt Buyback Offer
------------------------------------------------
Telecom Argentina Stet-France Telecom SA and its mobile
subsidiary Telecom Personal revealed that they have completed
their respective cash tender offers for a portion of their debt
instruments, which began on April 16, Business News Americas
relates.

According to preliminary calculations, Telecom managed to
exchange US$210 million in cash for discounted debt, while
Telecom Personal racked up US$80 million. Originally, the telcos
planned to spend US$260 million and US$45 million, respectively,
though these amounts were boosted to US$310 million and US$55
million on May 19.

To sweeten the offer for their creditors, the companies also
raised the buyback price on May 19 to 48-55% of the outstanding
principal, from 43.5-50%.

An Argentine analyst who wished to remain unnamed suggested that
the discount will more likely be closer to 55% than 48%. Although
the projected final amount is less than what the companies were
originally expecting, US$290 million is "reasonable" and shows
that the company is on the right track to restructure its debt.

According to the companies, the final calculations will be
released on Thursday, June 5, and bondholders will receive their
respective payments on or before June 9.

Telecom Argentina defaulted on US$3.2 billion of debt, making it
the biggest corporate defaulter and one of the first to begin
restructuring debt after the government's US$95 billion bond
default in late 2001 and devaluation.

CONTACT:  TELECOM ARGENTINA STET - FRANCE TELECOM SA(TELECOM)
          Alicia Moreau de Justo 50, 10th Floor
          Capital Federal (1107) Repoblica Argentina
          Phone: +54 11 4968 4000
          Home Page: http://www.telecom.com.ar
          Contacts:
          Alberto J. Ricciardi, Chief Financial Officer
          Elvira Lazzati, Finance Director
          Pedro Insussarry, Investor Relations Manager
          Phone: (5411) 4968-3626/3627
          Fax: (5411) 4313-5842/3109
          Email: inversores@intersrv.telecom.com.ar



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

ADVANTAGE (BERMUDA) FUND: Calls Creditors to First Meeting
----------------------------------------------------------
Notice is hereby given that the First Meeting of Creditors of
Bermuda-based Advantage (Bermuda) Fund Ltd. (in liquidation) will
be held at the offices of PricewaterhouseCoopers at the following
address:
          Dorchester House,
          7 Church Street
          Hamilton HM11
          Bermuda.

The said meeting starts at 11:00 am of July 2, 2003.

Forms of Proof of Debt and General and Special Proxies are
available from the Official Receiver/Provisional Liquidator. To
entitle you to vote thereat, Proofs of Debt and Proxy forms to be
used at the Meeting, must be lodged with the Official
Receiver/Provisional Liquidator, at the address shown below,
marked for the immediate attention of Ian Ridge not later than
5:00pm on June 30, 2003. Those documents sent by fax, and
received before the allotted time will be accepted by the
Official Receiver/Provisional Liquidator.

Dated this May 22, 2003

NOTES:

A. Statement of the Company's Affairs has not been lodged. (Refer
to the First Report to Creditors)

At the First Meetings of the Creditors and Contributories they
may be amongst other things:
1. By resolution determine whether or not an application is to be
made to the Court to appoint a Liquidator other than the Official
Receiver.
2. By resolution determine whether or not an application should
be made to the Court for the appointment of a Committee of
Inspection to act with the Liquidator, and who are to be the
members of the Committee if appointed.

B. If a Liquidator is not appointed by the Court, the Official
Receiver will be Liquidator.

CONTACT:  PwC Consulting Limited (for and in behalf of the
Official
          Receiver/Provisional Liquidator)
          Advantage (Bermuda) Fund Ltd. - In Liquidation
          PricewaterhouseCoopers, Dorchester House,
          7 Church Street, Hamilton HM11, Bermuda
          Phone: (441) 295 2000
          Fax: (411) 295 1242


TYCO INTERNATIONAL: Fitch Leaves Ratings Unchanged
--------------------------------------------------
Fitch Ratings has affirmed its ratings on the senior unsecured
debt and commercial paper of Tyco International Ltd. (Tyco), as
well as the unconditionally guaranteed debt of its wholly owned
direct subsidiary Tyco International Group S. A., at 'BB'/'B',
respectively. The Rating Outlook has been changed to Stable from
Negative. The ratings affect approximately $21 billion of debt
securities.

The change to Outlook Stable reflects Tyco's progress with
respect to reestablishing access to capital, addressing its
liability structure, implementing steps to improve operating
performance, and demonstrating cash generation despite a
difficult economic environment in a number of key end-markets.
The impact of fundamental favorable changes in Tyco's financial
policies and profile since late fiscal 2002 is constrained by
economic weakness in its markets, potential legal liabilities
related to shareholder lawsuits and SEC investigations, and the
possibility, although reduced, of further accounting charges and
adjustments. The ratings could improve over time as Tyco
demonstrates more consistent results and that it has put behind
it the accounting concerns that have obscured the transparency of
its financial reporting in the past.

Tyco has continued to see improvements in recent months in
addressing various concerns relating to liquidity and corporate
governance. In late April, 2003 the company disclosed charges,
mostly non-cash, totaling nearly $1.4 billion on a pretax basis.
The action is viewed by Fitch as a move to a more conservative
accounting approach along with a more conservative, disciplined
approach to growth in the Fire & Security segment. The extensive
nature of the internal investigations since 2002 has reduced the
likelihood of further significant charges.

Liquidity, while improving, remains a constraining factor in the
ratings. At March 31, 2003, Tyco's debt totaled $21.8 billion.
Projected free cash flow, along with planned debt retirement of
$4.5 billion (assuming $2.5 billion of convertible debt is put by
the holders in November), would leave the company with debt of
$17.3 billion and cash balances of $464 million as of Dec. 31,
2003. While this cash level is well below Tyco's historical
levels, additional liquidity is available under a $1.5 billion
bank facility expiring Jan. 30, 2004 that is currently undrawn.
In addition, Tyco could consider issuing modest amounts of new
debt given its improved access to capital. After December,
continuing cash flow and limited debt maturities (approximately
$900 million in calendar 2004 and $800 million in 2005) should
allow Tyco to begin rebuilding cash balances.

Despite modest debt reduction during the past 12 months, weak
operating earnings have had a negative impact on leverage as
measured by debt/EBITDA of 4.0 times (x) at March 31, 2003. A
small rebound in margins since the fiscal fourth quarter of 2002
may signal an improving trend in EBITDA and cash flow that would
have a positive effect on the ratings if borne out in future
periods. Cash flow is supported by Tyco's emphasis on minimizing
working capital and capital expenditures, minimal TyCom
expenditures and moderating losses, no significant acquisition
spending outside of ADT dealer contracts, and limited share
repurchases. These benefits will be reduced during the near
future by any pension contributions and by cash spending against
reserves for restructuring, purchase accounting and
holdback/earn-out liabilities that totaled just over $1.0 billion
at March 31, 2003. While liquidity will be somewhat constrained
through the end of 2003, free cash flow still is expected to
remain positive despite weak economic conditions, potentially
providing further confidence to lenders and opportunities to
extend debt maturities.

CONTACT:  Eric Ause, CFA
          Chicago
          Phone: +1-312-606-2302

          Mark Oline
          Chicago
          Phone: +1-312-368-2073

          Media Relations:
          James Jockle
          New York
          Phone: +1-212-908-0547


VC ADVANTAGE FUND: First Reorganizatinal Meeting Announced
----------------------------------------------------------
Notice is hereby given that the First Meeting of Creditors of
Bermuda-based VC Advantage Fund Ltd. (in liquidation) will be
held at the offices of PricewaterhouseCoopers at the following
address:
          Dorchester House,
          7 Church Street
          Hamilton HM11
          Bermuda.

The said meeting starts at 3:00 pm of July 2, 2003.

Forms of Proof of Debt and General and Special Proxies are
available from the Official Receiver/Provisional Liquidator. To
entitle you to vote thereat, Proofs of Debt and Proxy forms to be
used at the Meeting, must be lodged with the Official
Receiver/Provisional Liquidator, at the address shown below,
marked for the immediate attention of Ian Ridge not later than
5:00pm on June 30, 2003. Those documents sent by fax, and
received before the allotted time will be accepted by the
Official Receiver/Provisional Liquidator.

Dated this May 22, 2003

NOTES:

A. Statement of the Company's Affairs has not been lodged. (Refer
to the First Report to Creditors)

At the First Meetings of the Creditors and Contributories they
may be amongst other things:
1. By resolution determine whether or not an application is to be
made to the Court to appoint a Liquidator other than the Official
Receiver.
2. By resolution determine whether or not an application should
be made to the Court for the appointment of a Committee of
Inspection to act with the Liquidator, and who are to be the
members of the Committee if appointed.

B. If a Liquidator is not appointed by the Court, the Official
Receiver will be Liquidator.

CONTACT:  PwC Consulting Limited (for and in behalf of the
Official
          Receiver/Provisional Liquidator)
          Advantage (Bermuda) Fund Ltd. - In Liquidation
          PricewaterhouseCoopers, Dorchester House,
          7 Church Street, Hamilton HM11, Bermuda
          Phone: (441) 295 2000
          Fax: (411) 295 1242



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

ALCOA ALUMINIO: Fitch Revises FC Rating Outlook to Positive
-----------------------------------------------------------
Fitch Ratings has revised the Rating Outlook on the `B' foreign
currency rating for Alcoa Aluminio S.A. to Positive from Stable.
This rating action follows the recent revision of the Rating
Outlook to Positive from Stable on the foreign currency rating of
the Federative Republic of Brazil.

The Company's foreign currency rating is constrained to the
ratings of the sovereign. The sovereign's Rating Outlook revision
reflects signs that President Lula could succeed in building a
consensus on economic policies that would place Brazil's public
and external finances on a sustainable path. The sovereign
ratings, both foreign and local currency (Brazilian Real), remain
at 'B'.

CONTACT:  Daniel R. Kastholm CFA,
          Chicago
          Phone: +1-312-368-2070

          Anita Saha
          Chicago
          Phone: +1-312-368-3179

          Rafael Guedes
          Sao Paolo
          Phone: +55-11-287-3177

          Media Relations:
          Matt Burkhard
          New York
          Phone: +1-212-908-0540


ARACRUZ CELULOSE: Fitch Ups Foreign Currency Rating Outlook
-----------------------------------------------------------
Fitch Ratings has revised the Rating Outlook on the `B' foreign
currency rating for Aracruz Celulose S.A. to Positive from
Stable. This rating action follows the recent revision of the
Rating Outlook to Positive from Stable on the foreign currency
rating of the Federative Republic of Brazil.

The Company's foreign currency rating is constrained to the
ratings of the sovereign. The sovereign's Rating Outlook revision
reflects signs that President Lula could succeed in building a
consensus on economic policies that would place Brazil's public
and external finances on a sustainable path. The sovereign
ratings, both foreign and local currency (Brazilian Real), remain
at 'B'.

CONTACT:  Daniel R. Kastholm CFA,
          Chicago
          Phone: +1-312-368-2070

          Anita Saha
          Chicago
          Phone: +1-312-368-3179

          Rafael Guedes
          Sao Paolo
          Phone: +55-11-287-3177

          Media Relations:
          Matt Burkhard
          New York
          Phone: +1-212-908-0540


AMBEV: Foreign Currency Rating Outlook Revised to Positive
----------------------------------------------------------
Fitch Ratings has revised the Rating Outlook on the `B' foreign
currency rating for Companhia de Bebidas das Americas S.A.
(Ambev) to Positive from Stable. This rating action follows the
recent revision of the Rating Outlook to Positive from Stable on
the foreign currency rating of the Federative Republic of Brazil.

The Company's foreign currency rating is constrained to the
ratings of the sovereign. The sovereign's Rating Outlook revision
reflects signs that President Lula could succeed in building a
consensus on economic policies that would place Brazil's public
and external finances on a sustainable path. The sovereign
ratings, both foreign and local currency (Brazilian Real), remain
at 'B'.

CONTACT:  Daniel R. Kastholm CFA,
          Chicago
          Phone: +1-312-368-2070

          Anita Saha
          Chicago
          Phone: +1-312-368-3179

          Rafael Guedes
          Sao Paolo
          Phone: +55-11-287-3177

          Media Relations:
          Matt Burkhard
          New York
          Phone: +1-212-908-0540


CEMIG: Board Appoints New Executive Vice-President
--------------------------------------------------
Companhia Energetica de Minas Gerais - CEMIG (NYSE: CIG; BOVESPA:
CMIG3, CMIG4; LATIBEX: XCMIG), a leading fully integrated
electricity company in Brazil, announced on Wednesday that
holders of preferred shares elected one member of CEMIG's
Board of Directors at the Extraordinary General
Shareholders' Meeting held on May 28, 2003. The new Board of
Directors is comprised of the following members:

    1. Elected by the shareholder Estado de Minas Gerais: Wilson
Nelio Brumer (Chairman) and his alternate, Fernando Lage de Melo
Djalma Bastos de Morais (Vice-President) and his alternate, Luiz
Antonio Athayde Vasconcelos Francelino Pereira dos Santos and his
alternate, Marco Antonio Rodrigues da Cunha Antonio Adriano Silva
and his alternate, Francisco Sales Dias Horta Flavio Jose Barbosa
de Alencastro and his alternate, Guilherme Horta Goncalves Junior
Aecio Ferreira da Cunha and his alternate, Eduardo Lery Vieira
Maria Estela Kubitschek Lopes and her alternate, Fernando
Henrique Schuffner Neto Alexandre Heringer Lisboa and his
alternate, Franklin Moreira Goncalves

    2. Elected by the shareholder Southern Electric Brasil
Participacoes Ltda.: Oderval Esteves Duarte Filho and his
alternate, Geraldo Dannemann Marcelo Pedreira de Oliveira and his
alternate, Luiz Felippe Leal da Fonseca Junior Joao Bosco Braga
Garcia and his alternate, Carlos Suplicy de Figueiredo Forbes
Sergio Lustosa Botelho Martins and his alternate, Marc Leal
Claassen Mario Lucio Lobato and his alternate, Andre Luis
Garbuglio

    3. Elected by minority holders of preferred shares: Francisco
Roberto Andre Gros and his alternate, Arnaldo Jose Vollet

At the same meeting, shareholders approved amendments to
CEMIG's By-laws allowing, among other things, the
modification of the composition of the Board of Executive
Officers, creating the position of the Executive Vice-President.
The newly elected Board of Directors appointed Francisco Sales
Dias Horta as the Executive Vice-President in a meeting held on
June 2, 2003.

CONTACT:  CEMIG
          Luiz Fernando Rolla, Investor Relations
          Phone: +55-31-3299-3930
          Fax: +55-31-3299-3933
          Email: lrolla@cemig.com.br
             or
          Eliza Gibbons
          The Anne McBride Company
          Phone: +1-303-477-1350
          Fax: +1-212-983-1736
          Email: eliza@annemcbride.com


COMPANHIA PETROLIFERA: Fitch Improves `B' FC Rating Outlook
----------------------------------------------------------
Fitch Ratings has revised the Rating Outlook on the `B' foreign
currency rating for Companhia Petrolifera Marlim to Positive from
Stable. This rating action follows the recent revision of the
Rating Outlook to Positive from Stable on the foreign currency
rating of the Federative Republic of Brazil.

The Company's foreign currency rating is constrained to the
ratings of the sovereign. The sovereign's Rating Outlook revision
reflects signs that President Lula could succeed in building a
consensus on economic policies that would place Brazil's public
and external finances on a sustainable path. The sovereign
ratings, both foreign and local currency (Brazilian Real), remain
at 'B'.

CONTACT:  Daniel R. Kastholm CFA,
          Chicago
          Phone: +1-312-368-2070

          Anita Saha
          Chicago
          Phone: +1-312-368-3179

          Rafael Guedes
          Sao Paolo
          Phone: +55-11-287-3177

          Media Relations:
          Matt Burkhard
          New York
          Phone: +1-212-908-0540


COPEL: Injunction Halts Araucaria Arbitration Proceedings
---------------------------------------------------------
Brazil's Parana state power company Copel announced Wednesday
that it has obtained a court injunction suspending arbitration
proceedings with the 480MW Araucaria thermoelectric power plant,
Business News Americas relates.

It was reported earlier that the Brazilian unit of US-based El
Paso and Brazil's federal energy company Petrobras approached the
International Chamber of Commerce in Paris, France, to resolve a
dispute with Copel.

Copel signed a power purchase agreement with the Araucaria
thermoelectric project in May 2000. Copel owns 20% of the plant,
Petrobras owns 20% and US power company El Paso owns 60%.

Copel stopped paying for power bought under contract from
Araucaria in January, saying it was too expensive, and has said
it wants to renegotiate cheaper prices.

El Paso and Petrobras sought international arbitration to recover
those payments frozen since January.


CST: Fitch Bumps Currency Outlook to Positive
---------------------------------------------
Fitch Ratings has revised the Rating Outlook on the `B' foreign
currency rating for Companhia Siderurgica de Turbarao S.A. (CST)
to Positive from Stable. This rating action follows the recent
revision of the Rating Outlook to Positive from Stable on the
foreign currency rating of the Federative Republic of Brazil.

The Company's foreign currency rating is constrained to the
ratings of the sovereign. The sovereign's Rating Outlook revision
reflects signs that President Lula could succeed in building a
consensus on economic policies that would place Brazil's public
and external finances on a sustainable path. The sovereign
ratings, both foreign and local currency (Brazilian Real), remain
at 'B'.

CONTACT:  Daniel R. Kastholm CFA,
          Chicago
          Phone: +1-312-368-2070

          Anita Saha
          Chicago
          Phone: +1-312-368-3179

          Rafael Guedes
          Sao Paolo
          Phone: +55-11-287-3177

          Media Relations:
          Matt Burkhard
          New York
          Phone: +1-212-908-0540


CSN: Fitch Changes Foreign Currency Rating Outlook
--------------------------------------------------
Fitch Ratings has revised the Rating Outlook on the `B' foreign
currency rating for Companhia Siderurgica Nacional S.A. (CSN) to
Positive from Stable. This rating action follows the recent
revision of the Rating Outlook to Positive from Stable on the
foreign currency rating of the Federative Republic of Brazil.

The Company's foreign currency rating is constrained to the
ratings of the sovereign. The sovereign's Rating Outlook revision
reflects signs that President Lula could succeed in building a
consensus on economic policies that would place Brazil's public
and external finances on a sustainable path. The sovereign
ratings, both foreign and local currency (Brazilian Real), remain
at 'B'.

CONTACT:  Daniel R. Kastholm CFA,
          Chicago
          Phone: +1-312-368-2070

          Anita Saha
          Chicago
          Phone: +1-312-368-3179

          Rafael Guedes
          Sao Paolo
          Phone: +55-11-287-3177

          Media Relations:
          Matt Burkhard
          New York
          Phone: +1-212-908-0540


MRS LOGISTICA: FC Rating Outlook Revised to Positive By Fitch
-------------------------------------------------------------
Fitch Ratings has revised the Rating Outlook on the `B' foreign
currency rating for MRS Logistica S.A. (MRS) to Positive from
Stable. This rating action follows the recent revision of the
Rating Outlook to Positive from Stable on the foreign currency
rating of the Federative Republic of Brazil.

The Company's foreign currency rating is constrained to the
ratings of the sovereign. The sovereign's Rating Outlook revision
reflects signs that President Lula could succeed in building a
consensus on economic policies that would place Brazil's public
and external finances on a sustainable path. The sovereign
ratings, both foreign and local currency (Brazilian Real), remain
at 'B'.

CONTACT:  Daniel R. Kastholm CFA,
          Chicago
          Phone: +1-312-368-2070

          Anita Saha
          Chicago
          Phone: +1-312-368-3179

          Rafael Guedes
          Sao Paolo
          Phone: +55-11-287-3177

          Media Relations:
          Matt Burkhard
          New York
          Phone: +1-212-908-0540


PETROBRAS: Fitch Changes `B' FC Rating Outlook
----------------------------------------------
Fitch Ratings has revised the Rating Outlook on the `B' foreign
currency rating for Petroleo Brasileiro S.A. (Petrobras) to
Positive from Stable. This rating action follows the recent
revision of the Rating Outlook to Positive from Stable on the
foreign currency rating of the Federative Republic of Brazil.

The Company's foreign currency rating is constrained to the
ratings of the sovereign. The sovereign's Rating Outlook revision
reflects signs that President Lula could succeed in building a
consensus on economic policies that would place Brazil's public
and external finances on a sustainable path. The sovereign
ratings, both foreign and local currency (Brazilian Real), remain
at 'B'.

CONTACT:  Daniel R. Kastholm CFA,
          Chicago
          Phone: +1-312-368-2070

          Anita Saha
          Chicago
          Phone: +1-312-368-3179

          Rafael Guedes
          Sao Paolo
          Phone: +55-11-287-3177

          Media Relations:
          Matt Burkhard
          New York
          Phone: +1-212-908-0540


RIPASA CELULOSE: Fitch Revises FC Rating Outlook to Positive
------------------------------------------------------------
Fitch Ratings has revised the Rating Outlook on the `B' foreign
currency rating for Ripasa Celulose e Papel S.A. to Positive from
Stable. This rating action follows the recent revision of the
Rating Outlook to Positive from Stable on the foreign currency
rating of the Federative Republic of Brazil.

The Company's foreign currency rating is constrained to the
ratings of the sovereign. The sovereign's Rating Outlook revision
reflects signs that President Lula could succeed in building a
consensus on economic policies that would place Brazil's public
and external finances on a sustainable path. The sovereign
ratings, both foreign and local currency (Brazilian Real), remain
at 'B'.

CONTACT:  Daniel R. Kastholm CFA,
          Chicago
          Phone: +1-312-368-2070

          Anita Saha
          Chicago
          Phone: +1-312-368-3179

          Rafael Guedes
          Sao Paolo
          Phone: +55-11-287-3177

          Media Relations:
          Matt Burkhard
          New York
          Phone: +1-212-908-0540


SADIA S.A.: Fitch Changes Foreign Currency Rating Outlook
---------------------------------------------------------
Fitch Ratings has revised the Rating Outlook on the `B' foreign
currency rating for Sadia S.A. to Positive from Stable. This
rating action follows the recent revision of the Rating Outlook
to Positive from Stable on the foreign currency rating of the
Federative Republic of Brazil.

The Company's foreign currency rating is constrained to the
ratings of the sovereign. The sovereign's Rating Outlook revision
reflects signs that President Lula could succeed in building a
consensus on economic policies that would place Brazil's public
and external finances on a sustainable path. The sovereign
ratings, both foreign and local currency (Brazilian Real), remain
at 'B'.

CONTACT:  Daniel R. Kastholm CFA,
          Chicago
          Phone: +1-312-368-2070

          Anita Saha
          Chicago
          Phone: +1-312-368-3179

          Rafael Guedes
          Sao Paolo
          Phone: +55-11-287-3177

          Media Relations:
          Matt Burkhard
          New York
          Phone: +1-212-908-0540


SAMARCO: FC Rating Outlook Revised to Positive By Fitch
-------------------------------------------------------
Fitch Ratings has revised the Rating Outlook on the `B' foreign
currency rating for Samarco Mineracao S.A. (Samarco) to Positive
from Stable. This rating action follows the recent revision of
the Rating Outlook to Positive from Stable on the foreign
currency rating of the Federative Republic of Brazil.

The Company's foreign currency rating is constrained to the
ratings of the sovereign. The sovereign's Rating Outlook revision
reflects signs that President Lula could succeed in building a
consensus on economic policies that would place Brazil's public
and external finances on a sustainable path. The sovereign
ratings, both foreign and local currency (Brazilian Real), remain
at 'B'.

CONTACT:  Daniel R. Kastholm CFA,
          Chicago
          Phone: +1-312-368-2070

          Anita Saha
          Chicago
          Phone: +1-312-368-3179

          Rafael Guedes
          Sao Paolo
          Phone: +55-11-287-3177

          Media Relations:
          Matt Burkhard
          New York
          Phone: +1-212-908-0540


TELE NORTE LESTE: Fitch Changes `B' FC Rating Outlook
-----------------------------------------------------
Fitch Ratings has revised the Rating Outlook on the `B' foreign
currency rating for Tele Norte Leste Participacoes S.A. to
Positive from Stable. This rating action follows the recent
revision of the Rating Outlook to Positive from Stable on the
foreign currency rating of the Federative Republic of Brazil.

The Company's foreign currency rating is constrained to the
ratings of the sovereign. The sovereign's Rating Outlook revision
reflects signs that President Lula could succeed in building a
consensus on economic policies that would place Brazil's public
and external finances on a sustainable path. The sovereign
ratings, both foreign and local currency (Brazilian Real), remain
at 'B'.

CONTACT:  Daniel R. Kastholm CFA,
          Chicago
          Phone: +1-312-368-2070

          Anita Saha
          Chicago
          Phone: +1-312-368-3179

          Rafael Guedes
          Sao Paolo
          Phone: +55-11-287-3177

          Media Relations:
          Matt Burkhard
          New York
          Phone: +1-212-908-0540


TELEMAR: Fitch Comments On Corporate Structure Change
-----------------------------------------------------
Fitch Ratings views the recently announced change in the
corporate structure of Telemar as neutral to credit quality.
Fitch Ratings currently maintains local currency debt ratings for
Tele Norte Leste Participacoes S.A. (TNE) and its fixed-line
operating subsidiary, Telemar Norte Leste S.A. (TMAR) of `BB+';
and `BBB-`;, respectively. The Rating Outlook for these ratings
is Negative. Fitch also maintains foreign currency debt ratings
of `B'; for TNE and TMAR, which are constrained by the sovereign
rating of Brazil. The Rating Outlook for these ratings is
Positive. TNE and TMAR are collectively known as Telemar. Fitch
has national scale ratings of `AA-(bra)'; for TNE, which apply to
its local debentures, and `AA(bra)'; for TMAR.

On May 28, 2003, TMAR announced that it is acquiring the
affiliate wireless unit Telemar PCS (Oi) from parent company TNE
for the price of BRL 1 plus the assumption of BRL 3.0 billion of
third party debt and BRL 1.8 billion of intercompany loans from
TNE. Oi is a wholly owned direct subsidiary of TNE. After the
transaction is completed, Oi will be a wholly owned subsidiary of
TMAR and an indirect subsidiary of TNE. Telemar expects the
transaction will allow the company to optimize its tax position
and generate tax savings that will modestly boost free cash flow.

The change in the corporate structure of Telemar is not expected
to affect consolidated gross debt levels, which totaled BRL 12.3
billion at March 31, 2003 excluding effects from hedging. Of this
amount, third party debt of BRL 6.0 billion is currently located
at the TNE holding company level, BRL 3.1 billion (plus BRL 2.3
billion of intercompany loans) at the TMAR operating company
level, and BRL 3.2 billion (plus BRL 2.2 billion of intercompany
loans) at the Oi operating company level. After the transaction
is completed, approximately BRL 6.0 billion of third party debt
is expected to be located at the TNE level and BRL. 6.3 billion
(plus BRL 4.0 billion of intercompany loans) at TMAR on a
consolidated basis, including debt at both the TMAR and Oi
operating company level. According to Fitch's methodology, debt
at the TNE holding company level is viewed as structurally
subordinated to debt at the TMAR and Oi operating company level,
since TNE relies on cash flow from its subsidiaries to service
its debt obligations.

Telemar is one of the leading telecommunications providers in
Brazil with more than 15 million fixed lines in service and 2.0
million wireless subscribers. The company provides
telecommunications services in 16 Brazilian states located in
northern, northeastern, and southeastern Brazil.


TRIKEM S.A.: Fitch Improves Foreign Currency Rating Outlook
-----------------------------------------------------------
Fitch Ratings has revised the Rating Outlook on the `B' foreign
currency rating for Trikem S.A. to Positive from Stable. This
rating action follows the recent revision of the Rating Outlook
to Positive from Stable on the foreign currency rating of the
Federative Republic of Brazil.

The Company's foreign currency rating is constrained to the
ratings of the sovereign. The sovereign's Rating Outlook revision
reflects signs that President Lula could succeed in building a
consensus on economic policies that would place Brazil's public
and external finances on a sustainable path. The sovereign
ratings, both foreign and local currency (Brazilian Real), remain
at 'B'.

CONTACT:  Daniel R. Kastholm CFA,
          Chicago
          Phone: +1-312-368-2070

          Anita Saha
          Chicago
          Phone: +1-312-368-3179

          Rafael Guedes
          Sao Paolo
          Phone: +55-11-287-3177

          Media Relations:
          Matt Burkhard
          New York
          Phone: +1-212-908-0540



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

TELEFONICA CTC: Proposes Extraordinary Dividend to Shareholders
---------------------------------------------------------------
Compa¤ˇa de Telecomunicaciones de Chile S.A.
(NYSE:CTC)("Telef˘nica CTC Chile" or the "Company") announces
that its Board of Directors agreed to hold an Extraordinary
Shareholders Meetings to approve the distribution of a dividend
of CH$17.5 per share (approximately US$0.10 per ADR1), to be
charged to retained earnings as of December 31, 2002. This
Extraordinary Shareholders Meetings will be held on July 11, 2003
at 12:00 P.M. in the "Claudio Garcˇa" Auditorium Located in the
Company's corporate headquarters building in Santiago, Chile.

Companˇa de Telecomunicaciones de Chile S.A. the first South
American company to list shares on The New York Stock Exchange,
is the largest telecommunication enterprise in Chile, providing
local service throughout the country. Additionally, the Company
provides equipment marketing, data transmission, value-added
services and information systems services and operates a
nationwide cellular network.

CONTACT:  TELEFONICA CTC CHILE
          Gisela Esobar, gescoba@ctc.cl
          Ver˘nica Gaete, vgaete@ctc.cl
          M.Jos‚ Rodrˇguez, mjrodri@ctc.cl
          Florencia Acosta, macosta@ctc.cl
          Tel: 562-691-3867
          Fax: 562-6912392

          THE GLOBAL CONSULTING GROUP
          Richard Huber, rhuber@hfgcg.com
          Mariana Crespo, mcrespo@jfgcg.com
          Tel:646-284-9413



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

GRUPO MINSA: Restores Financial Health
--------------------------------------
Grupo Minsa, the second largest producer of corn flour for
tortillas in Mexico, revealed that on May 23, it fulfilled its
financial obligations committed in the debt restructuring
process, which the Company said ended on April 28. To fulfill the
term of the debt-restructuring contract, Minsa shareholders
committed to carry out a capital increase for US$10 million,
according to a report by Internet Securities.

Grupo Minsa, led by Juan Jaime Petersen Farah, had accumulated a
debt equivalent to more than US$90 million as a result of the
economic deceleration that has affected the country during the
last few years, especially the corn flour industry.

But with the culmination of the debt-restructuring process, the
Company has improved its financial situation, thus reinforcing
its position before clients, suppliers, employees and
shareholders.


MEXICANA DE AVIACION: Executive Denies Potential Bankruptcy
-----------------------------------------------------------
Mexican airline Mexicana de Aviacion slammed reports that
suggested the Company, which is owned by government-controlled
holding company Cintra, is on the verge of bankruptcy due to
accrued losses.

"We are not in the best possible situation, but neither are we at
the bottom. We have to be creative to solve our problems, for
which we cannot blame outsiders," company chairman Fernando
Flores told local newspaper Reforma.

He insisted that the Company would solve its financial problems
without government help. According to the executive, the airline
would be able to pull through with the support of its workers.

Flores said that Mexicana had achieved operating savings of some
MXN300 million (US$29.4 million) in the first four months of the
year and that it was studying ways to further reduce costs this
year.

CONTACT:  MEXICANA DE AVIACION
          Adolfo Crespo, V.P. of Public Affairs
          Division of Mexicana Airlines, +1-210-491-9764


PEMEX: Closes $750M Bond Issue in International Markets
-------------------------------------------------------
Mexico's state oil company Pemex concluded Wednesday the issue of
US$750 million in bonds on international markets, reports
Business News Americas. Pemex revealed that US investors bought
63% of the bonds that expire December 15, 2014, pay a coupon of
7.38% per semester, and yield 6.14% for investors, 270 basis
points above the US treasury bonds.

The remainder was split between Latin America, Europe and Asia.
Total demand was for over US$1 billion, Pemex said.

The proceeds of the issue, led by Lehman Brothers and Credit
Suisse First Boston, will be used to finance projects under the
Pidiregas scheme. Pemex uses the Pidiregas scheme to attract
private sector investors, who pay for development costs and are
repaid once projects are operating.

The conclusion of the bond placement effectively wraps up the
US$1.5 billion foreign currency denominated bonds that Pemex said
it would place on international markets during 2003.

In February, Pemex issued US$750 million of 5.5-year bonds.


* Mexico: Fitch Assigns 'BBB-` to EUR750 Mln In Global Bonds
------------------------------------------------------------
Fitch Ratings assigned on Wednesday a long-term foreign currency
rating of 'BBB-' to the Republic of Mexico's global bond issued
Tuesday. The Rating Outlook is Stable. The EUR750 million of 10-
year global bond was issued primarily to fund the amortization of
federal government liabilities that have less favorable financial
terms. The bond contains the Collective Action Clause, similar to
the bonds that have been issued by Mexico since February 2003.

Mexico's ratings are supported by the reduction in its external
debt burden, the country's prudent policy framework and liability
management, and the ongoing integration of the country with the
U.S. The ratings remain constrained by the structural weaknesses
in public finances, slow progress on structural reforms, and high
regional and income inequality.

Mexico has experienced a sharp slowdown in growth over the past
two years. Given the uncertainty regarding the U.S. and global
growth, Mexico's growth would be subdued this year as well.
However, the authorities have followed a restrictive fiscal
policy to contain the increase in government indebtedness. The
budget for 2003 aims to reduce the non-financial public sector
deficit to 0.5% of GDP from 1.2% in 2002. Although GDP growth is
likely to come under the 3% assumed in the budget, higher than
budgeted oil prices should help the authorities in achieving this
target. The fiscal outturns for the first four months of 2003
corroborate the improved fiscal position of Mexico, which has
been primarily due to higher oil receipts. Moreover, Fitch
believes that the authorities would employ automatic adjusters to
cut spending if revenues fall short of expectations to meet the
fiscal target.

Monetary policy has remained restrictive, responding to the
rising inflationary pressures in the country. Inflationary
pressures have shown a decline in recent months, although the
annual inflation rate of 5.2% in April 2003 remains above the
central bank's inflation target of 3% for this year. At the same
time, external imbalances have also moderated, although exports
of manufactured goods remain sluggish, given the slowdown in the
U.S. growth.

Future rating changes will depend on improvements in Mexico's
public finances, external debt burden and progress on key
structural reforms. Given the high dependence of fiscal accounts
on oil, further fiscal reforms are needed to place public
finances on a stronger footing. Similarly, labor sector and
energy sector reforms are critical to improving Mexico's
competitiveness, attract greater foreign direct investment and
place the country on a higher growth path. International
competitiveness has gained even importance, given the increasing
competition that Mexico faces from China. So far, the Fox
administration has found it difficult to pass the energy sector
reform in a divided Congress. In this context, Mexico's mid-term
Congressional elections in July 2003 will be important, as its
results could influence the passage of critical reforms in the
country.



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

ANCAP: S&P Upgrades to 'B-' Following Upgrade on Uruguay
--------------------------------------------------------
Standard & Poor's Ratings Services said Wednesday that it raised
its corporate credit rating on Uruguay's 100% state-owned fuel,
alcohol, and cement company, Administraci˘n Nacional de
Combustibles Alcohol y Portland (ANCAP), to 'B-' from 'CCC'. The
outlook is stable.

The rating action is in line with the recent upgrade of the
Republic of Uruguay to 'B-' from 'SD' (selective default). As of
Dec. 31, 2002, ANCAP had approximately US$105 million in debt
(including a syndicated loan) that represented less than 30% of
capitalization.

"ANCAP's credit quality continues to be conditioned by that of
the Republic of Uruguay, its 100% owner. Therefore, an improved
financial situation for the Republic, a more favorable economic
environment, and prospects of a slight recovery from the
recession will positively affect ANCAP," stated Standard & Poor's
credit analyst Pablo Lutereau.

Because Standard & Poor's sees a relatively low risk of the
government interfering with the company's cash to serve its
financial obligations, the rating on ANCAP will not necessarily
follow the exact rating trajectory as the sovereign unless
changes in this matter are observed.

"The stable outlook indicates both the linkage of ANCAP's credit
quality to the sovereign's financial health and the fact that
ANCAP's current maturity profile does not represent a significant
challenge to the cash generation ability of the company," Mr.
Lutereau said.

The upgrade of Uruguay follows the completion of the distressed
debt exchange that cures Uruguay's selective default and
significantly reduces the sovereign's debt amortization burden
(with non-official creditors) through 2007. While the exchange
alleviated near-term funding pressures, Uruguay's debt burden
remains high-with net general government debt at a projected 90%
of GDP in 2003, and interest just over 18% of general government
revenue. The ratings on the sovereign also assume that the
lighter amortization schedule and progress on fiscal adjustment
will boost business confidence and permit a decline in real
interest rates, which, in turn, would contribute to a much-needed
economic recovery. Although the economic rebound is not expected
to be strong enough initially to preclude 2003 from being the
fifth consecutive year of recession, growth in 2004-2005 is
projected to surpass 3% annually.

The rating on ANCAP is conditioned by the risks inherent in
operating as a single-asset refiner and the challenging economic
environment of
Uruguay. Nevertheless, the rating also incorporates Standard &
Poor's expectations that ANCAP will maintain its dominant market
position.

ANALYSTS:  Pablo Lutereau, Buenos Aires (54) 114-891-2125
           Marta Castelli, Buenos Aires (54) 114-891-2128




               ***********


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 2003.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is $575 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are $25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


* * * End of Transmission * * *