TCRLA_Public/031029.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

          Wednesday, October 29, 2003, Vol. 4, Issue 214

                          Headlines

A R G E N T I N A

BANCO BISEL: $354M in Bonds Rated `raD' by Local S&P
BANCO HIPOTECARIO: Extends Debt Offer Once Again
BANCO HIPOTECARIO: Turns to Westbrook to Solve Paper Problems
BANCO SUQUIA: S&P Rates $36M of Bonds `raD'
BLANCO Y SALGADO: Creditor's Motion For Bankruptcy Approved

CRM: S&P Assigns Default Ratings To $150M of Bonds
CROSS MATCH: Court Approves Creditor's Petition For Bankruptcy
DESTINY: Court Assigns Receiver For Reorganization Process
DIRECTV LATIN AMERICA: Files Motion To Release Confidential Info
EASA: Receiver Closes Credit Verifications in Bankruptcy Process

HARINARG: Credit Verification Deadline Expires Today
MARMAK: Receiver Verifies Claims in Bankruptcy Proceedings
MATPLASS: Enters Bankruptcy On Court Orders
OSHIMA: Individual Reports Filing Due Today
REJEANS: Court To Decide on Reorganization Petition

RIO LINDO: Files "Concurso Preventivo" Motion
SATNET: Credit Check in Bankruptcy Process Closes Today
TRANSENER: Argentine S&P Rates $525M of Bonds `raD'


B R A Z I L

BANCO RURAL: Moody's Assigns LTFC Debt B2 Rating
BOMBRIL: Close To An Accord With Creditors
EMBRATEL PARTICIPACOES: Reports 3Q03 Results
TELEMAR: Oi Reaches 3 Million Subscribers


C H I L E

ENDESA CHILE: Places Bonds for Over $200M on the Local Market
TELEFONICA CTC: S&P Unlikely To Up Ratings Despite Improvements


C O L O M B I A

* S&P Affirms Republic of Colombia's Long-Term Ratings
* Fitch Affirms Republic of Colombia's Long-Term Ratings


E C U A D O R

ECUADORIAN BANKS: AGD Kicks Off Liquidation Process


J A M A I C A

AIR JAMAICA: Expands Codeshare Offerings With Delta Air Lines


M E X I C O

GRUPO TMM: TFM Wants Judge to Interpret Purchase-Sale Accord
TFM: S&P Lowers Ratings on KCS


P E R U

ESSALUD: Settles Wage Dispute With Workers


V E N E Z U E L A

IVSS: Commences Medical Debt Repayment Program
PDVSA: Files 2002 Annual Report With the U.S. SEC

     -  -  -  -  -  -  -  -

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

BANCO BISEL: $354M in Bonds Rated `raD' by Local S&P
----------------------------------------------------
A total of US$354 million in corporate bonds issued by Banco
Bisel S.A. received junk ratings from the Argentine arm of
Standard & Poor's International Ratings, Ltd. The `raD' rating
was based on the Company's finances as of June 30 this year.

The Comision Nacional de Valores, Argentina's securities
regulator said that the bonds matured in June 2000. Some US$300
million of these were described as "Programa de Emisi˘n de
TĦtulos de Deuda a Mediano Plazo", which are classified under
"Program", while the rest are called "Obligaciones Negociables
Subordinadas", under "Series and/or Class".

According to S&P an obligation is rated `raD' when it is in
payment default, or the obligor has filed for bankruptcy. The
`raD' rating is used when interest or principal payment are not
made on the date due even if the applicable grace period has not
expired, unless the ratings agency believes that such payments
will be made during such grace period.


BANCO HIPOTECARIO: Extends Debt Offer Once Again
------------------------------------------------
Banco Hipotecario SA has extended its offer to restructure US$1.2
billion of defaulted debt until Dec. 3, reports Dow Jones.

The Company had previously set Nov. 3 as deadline for
international offers. However, due to a slight delay in approval
for the documentation of its offer from the Italian securities
regulator, Banco Hipotecario said in a statement to the Buenos
Aires stock exchange that it is extending the debt-restructuring
offer by a month.

In a filing to the stock exchange at the end of September, the
bank said it expected approval from the Italian authorities Oct.
10. But approval did not come until Oct. 13, relates Dow Jones.

The Dec. 3 deadline also applies to an early payment date that
had previously been set for Sept. 15, then extended to Oct. 24,
Banco Hipotecario said.

"The bank is extending the expiry date for offers to grant
Italian bondholders additional time to consider the offers,"
Banco Hipotecario said in its statement Monday.

"As a result of the delay in the launching of the debt swap in
Italy, Italian bondholders have had a significantly shorter time
period than bondholders outside Italy to consider the offers."

The extension is subject to approval from the Italian securities
regulator. Banco Hipotecario has said Italian residents represent
more than US$185 million in face value of outstanding bonds.

Banco Hipotecario is 44% owned by the Argentine government. The
other main shareholders are local real estate giant IRSA
Inversiones y Representaciones S.A. and an investment fund owned
by financier George Soros.

Prior to the Argentine financial crisis, the bank was a leader in
the individual residential mortgage loans segment, with a total
portfolio of more than US$4 billion, and a market share of around
40%.


BANCO HIPOTECARIO: Turns to Westbrook to Solve Paper Problems
-------------------------------------------------------------
Westbrook Technologies, makers of Fortis and File Magic document
management software, announced Monday that their customer, Banco
Hipotecario in Buenos Aires, Argentina, has achieved Westbrook's
largest daily volume capture of scanned documents, which now
totals more than 10,000 per day.  Banco Hipotecario's Fortis
installation is digitally managing more than 50 million
documents.

Banco Hipotecario has a long-standing reputation as Argentina's
largest mortgage bank, having assets approaching $5 billion, in
addition to a 40-plus percent share of the entire mortgage market
in Argentina. With more than 1,500 employees in two dozen-plus
branch offices, the bank required technology that could manage
future growth of its massive file base.

The building holding Banco Hipotecario's mortgage files was
literally starting to collapse under the weight of too much
paper. They turned to Westbrook Technologies to find a scalable
document management solution that could solve their paper problem
and interface effectively with the bank's existing Informix
database platform.

Thanks to the Fortis' powerful capabilities, Banco Hipotecario
managers were able to reduce their daily capture task personnel
to only six persons. Bank officials realized a return on
investment within 60 days of Fortis' full implementation. "The
time saved alone has been worth the cost," said Mariano Lores, a
certified Westbrook Technologies reseller who installed Banco
Hipotecario's Fortis system.

"Westbrook Technologies' software suite was made for an
organization with this many documents. As our international
business continues to grow, Banco Hipotecario, in partnership
with File Solution, is one to watch, as they make the most of
cutting edge technology in their day-to-day operations," said
Westbrook Technologies' President Sean Donegan.

Westbrook Technologies' document management products, Fortis,
Inflo,
PowerWeb and File Magic, are currently assisting customers in 40
countries streamline business processes and work smarter.
Partners and customers commend Westbrook Technologies' software
suite for its ease of use, scalability and strong contingent of
professionals that ensure success out of our Branford, Conn.-
based headquarters.


BANCO SUQUIA: S&P Rates $36M of Bonds `raD'
-------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
rated a total of $36 million of Banco Suquia S.A.'s corporate
bonds `raD'. The rating is assigned to obligations that are
currently in default, or whose obligor has filed for the
bankruptcy according to S&P. The rating was based on the
Company's finances as of the end of June this year.

The affected bonds were classified under "Simple Issue". About
US$13 million of these are called "Obligaciones Negociables
subordinadas convertibles, autorizadas por AGE de fecha 19.9.97",
said the Comision Nacional de Valores, Argentina's securities
regulator. These mature on May 23, 2005.

The remaining US$23 million are described as "Obligaciones
Negociables subordinadas, autorizadas por AGO de fecha 19.12.97".
The maturity date was given as November 7, 2005.


BLANCO Y SALGADO: Creditor's Motion For Bankruptcy Approved
-----------------------------------------------------------
A creditor of Blanco y Salgado successfully sought for the
Company's bankruptcy. Argentine newspaper La Nacion relates that
Judge Ballerini of Buenos Aires' Court No. 24 issued the
bankruptcy order.

The receiver designated for the proceedings is Mr. Eduardo
Cosoli. He will verify creditors' claims until December 17. This
part of the bankruptcy process determines the amount and nature
of the Company's debts. The results will then be used as basis
for payments the Company might make at the end of the process
when its assets are liquidated.

The receiver is also required to prepare the individual and
general reports. However, La Nacion did not mention whether the
court, which works with Clerk No. 47, Dr. Medina, on the case,
has set the deadlines for the filing of the receiver's reports.

CONTACT:  Blanco y Salgado S.A.
          Traful 3707
          Buenos Aires

          Eduardo Cosoli
          1st Floor, Room H
          Lavalle 1948
          Buenos Aires


CRM: S&P Assigns Default Ratings To $150M of Bonds
--------------------------------------------------
Corporate Bonds issued by Compa¤Ħa de Radiocomunicaciones Moviles
S.A. were assigned default ratings by Standard & Poor's
International Ratings, Ltd. Sucursal Argentina. The rating,
issued Thursday, was based on the Company's finances as of June
30, 2003.

The bonds were described as "Serie emitida bajo el Programa de
Ons por hasta U$S 350 millones, vencido el 9-02-03", according to
the Comision Nacional Valores, Argentina's securities watchdog.
The bonds, worth a total of US$150 million, were classified under
"Series and/or Class", and their maturity date was given as May
28, 2008.


CROSS MATCH: Court Approves Creditor's Petition For Bankruptcy
--------------------------------------------------------------
Buenos Aires Insolvency Judge Garibotto, of Court No. 2, approved
a motion for the bankruptcy of local medical services company
Cross Match S.A. recently. The Company's creditor, Bioquimica
Medica S.R.L., filed the petition after the Company failed to
honor its debts.

The credit verification process ends on December 29 this year.
Proofs of claim must be presented to the receiver, Mr. Fernando
Aquilino, for authentication before the said date. The receiver
is also required to prepare the individual and general reports,
whose deadlines were not revealed by the report.

Clerk No. 3, Dr. Vassallo, works with the court on the case.

CONTACT:  Cross Match S.A.
          Laprida 1857
          Buenos Aires

          Fernando Aquilino
          Lavalle 1459
          Buenos Aires


DESTINY: Court Assigns Receiver For Reorganization Process
----------------------------------------------------------
Court No. 4 of the Civil and Commercial Tribunal of Zarate
Campana assigns Ms. Martha Magdalena Comba as receiver for the
reorganization proceedings Destiny S.A. is undergoing. Local news
portal Infobae relates that the Court recently approved the
Company's motion for "Concurso Preventivo".

Creditors must have their claims authenticated by the receiver
before November 10 this year. Results of the verifications will
be submitted to the court on December 23 through the individual
reports, which are prepared upon completion of the verification
process.

After the individual reports are processed, the receiver will
combine the results into a single general report, which is due
for submission on March 9 next year. The reorganization will
proceed with an informative assembly on September 2 next year.

CONTACT:  Martha Magdalena Comba
          French 474
          Campana


DIRECTV LATIN AMERICA: Files Motion To Release Confidential Info
----------------------------------------------------------------
Judge Walsh rules:

   (1) DIRECTV LATIN AMERICA is directed to disclose to Pachulski
       and Huron information and other data contained in the
       Contracts between the Debtor and certain programmers and
       the other third parties that the Committee has requested
       which in the Debtor's sole determination is reasonably
       necessary to the Committee Advisor's evaluation of the
       Debtor's proposed restructuring, provided that the
       Contracts, and all the requested information or other data
       they contain, provided by the Debtor will be designated
       as, and deemed to be, "Restricted Disclosure Only,"
       pursuant to the Non- Agreement entered into as of July 31,
       2003 by the Debtor and the Committee Advisor, and the
       Debtor's disclosure complies with the terms of the Order;

   (2) Notwithstanding the Non-Disclosure Agreement, the Debtor
       will not remove the designation of "Restricted Disclosure
       Only" or otherwise consent to the disclosure by the
       Committee Advisors of the Contracts, and the information
       and data it contains, without the prior written consent of
       the affected third parties or, in the absence of the
       consent, entry of a Court order of competent jurisdiction
       granting relief after appropriate notice to all affected
       parties and hearing;

   (3) The disclosure is to be made in strict compliance with the
       Non-Disclosure Agreement and the Order, and any breach of
       the Non-Disclosure Agreement may be enforced by the
       parties concerned and by the affected third parties,
       including without limitation by enforcing and pursuing the
       rights and remedies provided in the agreement, as if the
       affected third party were an express party to, and a third
       party beneficiary of, the Non-Disclosure Agreement;

   (4) The Non-Disclosure Agreement will not be amended without
       the consent of any affected third party;

   (5) The limited disclosure to Pachulski and Huron in
       accordance with the terms of the Non-Disclosure Agreement
       is necessary to comply with a valid order of the Court
       and therefore is not in violation of confidentiality
       provisions in the Contracts between the Debtor and the
       affected third parties; and

   (6) The Order will be deemed a waiver by any party of any
       right to seek further protection under Section 107(b) of
       the Bankruptcy Code. (DirecTV Latin America Bankruptcy
       News, Issue No. 14; Bankruptcy Creditors' Service,
       Inc., 609/392-0900)


EASA: Receiver Closes Credit Verifications in Bankruptcy Process
----------------------------------------------------------------
Mr. Daniel del Castillo, receiver for Buenos Aires-based
Emprendimientos Americanos S.A., closes the verification process
for the Company's bankruptcy today. The receiver will now prepare
the individual reports on the results of the verifications.

The Troubled Company Reporter - Latin America earlier reported
that the individual reports must be presented to the court on
December 10. The receiver will prepare a general report, which is
due on February 20, 2004, after these reports are processed in
the court.

The Company's assets will be liquidated at the end of the
bankruptcy process. Payments will be based on the results of the
credit verifications.

CONTACT:  Daniel del Castillo
          Peron 1558
          Buenos Aires


HARINARG: Credit Verification Deadline Expires Today
----------------------------------------------------
Creditors of Harinarg S.A. must present their claims to the
Buenos Aires-based company's receiver for verification. The
Troubled Company Reporter - Latin America earlier revealed that
the deadline for verification process expires today. The process
determines the nature and amount of the Company's debts.

The receiver, Mr. Jorge Wilke, will start preparations for the
individual reports on the result of the verifications. After
these reports are processed at court, the receiver will
consolidate the results into a general report. Local sources,
however, did not mention, whether Court No. 20, which is under
insolvency judge Raillade, has set the deadlines for the
submission of these reports.

The TCR-LA revealed earlier that the Company entered bankruptcy
after the court approved a petition for bankruptcy filed by one
of its creditors to whom the Company failed to meet its financial
obligations.

CONTACT:  Harinarg S.A.
          Lavalle 3161
          Buenos Aires

          Jorge Wilcke
          8th Floor, Tower I
          Teodoro Roosevelt 1877
          Buenos Aires


MARMAK: Receiver Verifies Claims in Bankruptcy Proceedings
----------------------------------------------------------
Creditors of Buenos Aires-based company Marmak S.A. must present
their proofs of claim to the Company's receiver, Mr. Ricardo
Adrogue, for validation. A report by Argentine news source
Infobae indicates that the deadline for verifications is December
16 this year.

The Company entered bankruptcy on orders from the city's Court
No. 23. Clerk No. 45 assists the court on the case. Infobae,
however, did not mention whether the court has set the deadlines
for submission of the individual and general reports.

CONTACT:  Marmak S.A.
          Donato Alvarez 3149
          Buenos Aires

          Ricardo Adrogue
          Bouchard 468
          Buenos Aires


MATPLASS: Enters Bankruptcy On Court Orders
-------------------------------------------
Buenos Aires plastic maker Matplass S.A. enters bankruptcy on
orders from the city's Court No. 6. The decision came after the
Uni˘n de Obreros y Empleados Pl sticos sought for its bankruptcy
for nonpayment of debt.

Working with Clerk No. 11, Dr. Piatti, the court assigned local
accountant Norberto Bonesi as the Company's receiver. Credit
verifications will run until December 30 this year. The receiver
is also required to prepare the individual and general reports.

CONTACT:  Matplass S.A.
          5th Floor, Room E
          San Nicolas 410
          Buenos Aires

          Norberto Bonesi
          1st Floor
          Ave Juan B. Justo 5096
          Buenos Aires


OSHIMA: Individual Reports Filing Due Today
-------------------------------------------
Mr. Abraham Elias Gutt, the receiver for Buenos Aires company
Oshima S.A., is required to file the individual reports for the
Company's bankruptcy process today. The reports were prepared
after the credit verification process was completed earlier this
year.

An earlier report by the Troubled Company Reporter - Latin
America indicated that the Company entered bankruptcy on orders
from the city's Court No. 21, which also selected the receiver
and set the schedule for the bankruptcy proceedings.

The court also ordered the receiver to prepare a general report
and file it on December 11 this year. The Company's assets will
be liquidated at the end of the process to reimburse its
creditors.

CONTACT:  Abraham Elias Gutt
          Tucuman 1484
          Buenos Aires


REJEANS: Court To Decide on Reorganization Petition
---------------------------------------------------
Insolvency Judge Fernandez of Buenos Aires Court No. 19 handles
the petition for reorganization filed by local company Rejeans
S.R.L., relates local newspaper La Nacion. Clerk No. 38, Dr.
Johnson, works with the court on the case.

The Company, which markets cotton products, submitted a motion
for "Concurso Preventivo" to the court. Documents indicated that
the Company stopped making debt payments in March 1998. The court
is yet to decide on the case.

CONTACT:  Rejeans S.R.L.
          Cabrera 4967
          Buenos Aires


RIO LINDO: Files "Concurso Preventivo" Motion
---------------------------------------------
Rio Lindo S.R.L., which is based in Buenos Aires, is seeking to
undergo reorganization. Argentine newspaper La Nacion reports
that the Company has filed a "Concurso Preventivo" motion at the
city's Court No. 17. Insolvency judge Bavastro handles the
Company's case with assistance from Clerk No. 34, Dr. Vanoli.

CONTACT:  Rio Lindo S.R.L.
          Cuzco 467
          Buenos Aires


SATNET: Credit Check in Bankruptcy Process Closes Today
-------------------------------------------------------
The period for the verification of creditors' claims in
connection with the bankruptcy of Buenos Aires company Satnet
Internet S.A. ends today, according to an earlier report by the
Troubled Company Reporter - Latin America. The Company's
receiver, Mr. Roberto Lapollnik validates proofs of claims in
order to determine the nature and amount of the Company's debts.

As ordered by the city's Court No. 7, the receiver will prepare
the individual reports on the results of the verifications. The
receiver is also required to prepare the general report, whose
deadline, like the individual reports', were not revealed by the
local source.

Clerk No. 13 assists the court on this particular case.

CONTACT:  Satnet Internet S.A.
          Florida 878
          Buenos Aires

          Roberto Lapollnik
          Parana 851
          Buenos Aires


TRANSENER: Argentine S&P Rates $525M of Bonds `raD'
---------------------------------------------------
Some US$525 million of bonds issued by Transener S.A. were rated
`raD' by Standard & Poor's International Ratings, Ltd. Sucursal
Argentina. Argentine securities regulator, the Comision Nacional
de Valores, said that the bonds matured on March 26 this year.

The bonds, classified under "Program", were described as
"Programa Global de Obligaciones Negociables simples no
convertibles en acciones, aprobado por Asamblea Gral. de
Accionistas de fecha Julio de 2001.".

The rating was based on the Company's finances as of the end of
June this year. S&P said that the rating is given to obligations
that are currently in default or whose obligor has filed for
bankruptcy.



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

BANCO RURAL: Moody's Assigns LTFC Debt B2 Rating
------------------------------------------------
Moody's Investors Service assigned a B2 rating to Rio de Janeiro-
based bank Banco Rural S.A.'s long-term foreign-currency debt.

The rating, which has a stable outlook, affects US$50 million
notes, maturing November 2004. The notes are issued under the
US$500 million Euro- medium term note program recently
established by Banco Rural.

The B2 rating, according to Moody's, incorporates Banco Rural's
fundamental credit quality, which is reflected by its Ba3 global
local currency rating and which includes all relevant country
risks.

Furthermore, the B2 rating reflects the probability of a
sovereign default implied by the Brazilian government's sub-
investment grade B2 foreign currency bond rating, and the
likelihood that the Brazilian government could impose a debt
moratorium in the event of default on its own foreign currency
obligations.

Banco Rural listed assets totaling US$1.8 billion as of June
2003.


BOMBRIL: Close To An Accord With Creditors
------------------------------------------
Bombril SA, a Brazilian maker of cleaning products, is about to
strike a BRL57-million (US$20 million) debt-restructuring accord
with creditors, Valor Economico, reports, citing an unidentified
creditor.

The said creditor suggested that almost all the large creditors
have accepted the plan, which calls for debt payments to be
delayed until January. Several small creditors, however, remain
dissident to the plan.

Sao Paulo-based Bombril more than tripled its net income in 2002
but reported losses for the fourth quarter of 2002 and the first
quarter of 2003, the latest periods available, according to
Bloomberg data.


EMBRATEL PARTICIPACOES: Reports 3Q03 Results
--------------------------------------------
Embratel Participacoes S.A. (Embratel Participacoes or the
"Company"), the Company that holds 98.8 percent of Empresa
Brasileira de Telecomunicacoes S.A. ("Embratel"), announced third
quarter Results.

(All financial figures are in Reais and based on consolidated
financial in "Brazilian Corporate Law")

HIGHLIGHTS

-- Net revenues were R$1.8 billion in the third quarter of 2003
increasing 7.8 percent when compared to the previous 2003
quarter. Year-to-date revenues reached R$5.2 billion.

-- EBITDA in the quarter was R$553 million representing an
increase of 46 percent when compared to the second quarter of
2003. The improvement in EBITDA resulted from stronger revenues,
improved operating efficiency, reversal of taxes and accounting
reclassification. Better operating performance alone contributed
to a 2.8 percentage point EBITDA margin growth.

-- Allowance for doubtful accounts dropped for the seventh
consecutive quarter to R$81 million or 3.4 percent of gross
revenues (4.5 percent of net revenues) compared to 3.9 percent of
gross revenues in the second quarter of 2003 and 6.4 percent in
the 2002 quarter of comparison.

-- Net income in the third quarter of 2003 was R$15 million and
was impacted by the effect of the devaluation of the Real vis-a-
vis foreign currencies. Year-to-date net income for 2003 was
R$155 million compared to a loss of R$738 million in the same
2002 period.

-- Cash position increased slightly from the previous 2003
quarter to R$685 million and net debt fell to R$3.3 billion.

-- Approximately R$187 million, net of new financing, were
amortized during the quarter. In the first nine months of 2003
Embratel reduced total outstanding debt by R$601 million (US$206
million).

-- Total capital expenditures in the quarter were R$141 million.

DATA COMMUNICATION SERVICES

Major contracts renewed this quarter

Embratel's data communications revenues (Data & Internet and
wholesale) were R$437 million in third quarter of 2003, remaining
flat relative to the previous 2003 quarter. Compared to the same
2002 quarter, net data revenues declined 4.0 percent due to loss
of contracts from merged entities (banking and cellular
industries) and a generally weak performance of the Internet
industry. The decline in Data & Internet revenues was partially
offset by the growth in data wholesale revenues resulting from
more capacity being made available to SMP providers.

Despite overall market weakness, Embratel has maintained or grown
share in most segments of the market. During the quarter the
company gained and renewed contracts with major credit card,
financial institutions, retailers and car manufacturers.

Year-to-date, Embratel's data revenue were R$1.3 billion
representing a decline of 2.3 percent compared to the first nine
months of 2002. The main causes for the quarter-over-quarter and
year-over-year reduction was the termination of the Service
Agreement with the Internet provider UOL (see Press release
9/7/03) and general downturn in the ISP market.

Embratel's satellite subsidiary continues to do well in both of
its main businesses. In the transponder space rental, Star One
recently renewed its contract with a large traditional client. In
its innovative Internet broadband offering via satellite, it is
having excellent acceptance among medium and small business and
with government entities. Star One's new satellite will be a
hybrid with 28 C band transponders and 14 Ku band transponders
with South American and transcontinental coverage. These
capabilities will allow this business to expand once the
satellite in launched in late 2005.

Embratel's launch of ISP gains momentum.

Embratel's own free Internet service provider - Click 21T,
launched last quarter, has gained over 200,000 subscribers in the
first month and a half of nationwide launch. This rapid
subscriber growth indicates the provider's superior quality
(storage capacity, fast access, anti-spam and anti-virus
features) is being recognized by customers.

Just last week, Embratel launched Click21 TopT, a paid Internet
provider service. Click21 Top is a unique offering for small and
medium companies of up to 500 employees located in more than 100
Brazilian cities. Embratel will enable these companies to obtain
in a single provider a complete Internet solution including -
own-domain, automatic email anti-virus, tools to develop their
own home-page and send faxes as well as exclusive content.
Clients of Click21 Top will benefit from Embratel service
quality.

VOICE SERVICES

Domestic Long Distance

Tariff increases and SMP revenues led to overall revenue growth

Domestic long distance revenues rose 14 percent quarter-over-
quarter to R$ 1.1 billion primarily due to entrance into a new
market for long distance SMP services and tariff adjustments.
Starting July 6, 2003 customers began to choose long distance
carrier for each call originating from a cellular phone. The
introduction of this calling mode is being done in phases and
will be completed in the fourth quarter of 2003. It also
represents a new revenue source for Embratel which more than
offsets the loss of wholesale voice revenues from cellular
operators. "We were pleased to enter this segment of the long
distance market and leverage the strength of our brand to grow
revenues", said Jorge Rodriguez, President of Embratel. Basic
voice traffic declined partly due to substitution for advanced
voice services, which continued to grow in the quarter, and
partly due to competition.

Year-over-year domestic long distance revenues declined by 2.3
percent mainly due to lower traffic because of line blocking
(despite net unblocking, the number of lines currently blocked
still exceed those that were blocked at the end of the third
quarter 2002) and competition.

Accumulated in the first nine months of the year, domestic long
distance revenue was R$3.0 billion compared to R$3.3 billion in
the first nine months of 2002. The decline in revenues is
explained by the company's efforts to focus on recurring-
profitable clients who are enabling it to grow revenues
profitably. This involved preventing delinquent and fraudulent
lines from using its services through line blocking. This factor
and competition were the main impact on the year-over-year
revenue decline.

International Long Distance

International long distance revenue was R$204 million in the
third quarter of 2003 representing a 5.0 percent decline from the
previous 2003 quarter. Inbound traffic continued to rise but
settlement tariffs fell causing overall inbound revenues to
decline. Outbound revenues, benefiting also from the use of
international SMP, rose due to the tariff increase offsetting the
decline in traffic.

Year-to-date, international revenue was R$645 million compared to
R$698 million in the first nine months of 2002. This 7.6 percent
decline resulted from lower traffic due to line blocking, to
competition and to price declines.

Local Services

Embratel ended the third quarter of 2003 with 1,370 Vipline local
service clients compared to approximately 900 in June 2003. One
of the highlights among client additions was one of the country's
main financial institutions. Services to Vipline clients are
provided in more than 2000 sites and capacity made available to
them also rose slightly more than 50 percent in the quarter.

EBITDA

EBITDA growth and margin improvement continues

EBITDA rose to R$553 million in the third quarter of 2003
compared to R$379 million in the previous 2003 quarter. EBITDA in
the third quarter of 2002 was R$442 million.

Following market practice, Embratel reclassified certain expenses
related to financial transactions such as taxes (PIS/Cofins on
financial income and CPMF) and expenses such as bank expenses and
letters of credit costs below the operating line under the
financial expense account. Previously, these expenses were
classified either as third party or as taxes both under G&A
expenses. The above mentioned reclassification totaled R$51
million for the first nine months of 2003 and were fully charged
to the third quarter 2003 financial expense account. A
corresponding R$80 million charge relative to the first nine
months of 2002 was also reclassified in the third quarter 2002
income statement for comparison purposes.

EBITDA margin rose to 30.8 percent in the third quarter of 2003
from 22.7 percent in the previous 2003 and 24 percent in the
third quarter of 2002.

The improvement in EBITDA resulted from stronger revenues,
continued decreases in allowance for doubtful accounts, reduction
in personnel expenses and lower third party expenses, which more
than offset the increase in interconnection costs. Better
operating performance alone contributed to a 2.8 percentage point
EBITDA margin growth. "Our operating improvement has been
consistent over three consecutive quarters", said Jorge
Rodriguez, Embratel's President. Another factor that led to a
further increase in the EBITDA of the third quarter 2003 was a
non-recurring reversal of ICMS provision and Cofins taxes
credited to the other operating income account. Lastly, the
reclassification mentioned above also impacted EBITDA. Had
neither the tax reversal nor the reclassification been made,
EBITDA would have been R$458 million, representing an EBITDA
margin of 25.5 percent.

Allowance for doubtful accounts dropped for the seventh
consecutive quarter to R$81 million, or 3.4 percent of gross
revenues (4.5 percent of net revenues). Compared to the third
quarter of 2002, this provision fell by 47.2 percent. Since SMP
is collected entirely through co-billing, delinquency patterns
are subject to the cellular company's objectives, quality
standards and efficiency in managing bad debt and fraud on post-
paid services. This is a new market for Embratel and the company
may make adjustments as the SMP long distance carrier selection
process (which has only been in place since July 6, 2003)
matures.

Personnel expenses, which in the second quarter of 2003 had been
increased by severance payments related to the outsourcing of our
IT services to IBM, fell by R$18.4 million quarter-over-quarter
and by R$7 million year-over-year. Expenses with third party
services fell to R$216 million from R$230 million in the second
quarter of 2003. In the third quarter of 2002 third-party
expenses were R$ 248 million.

Interconnection costs increased to R$826 million in the third
quarter of 2003. This increase results from higher SMP traffic
(which has a higher telco cost) and interconnection tariff
increases. As a result, telco margin rose to 46 percent in the
third quarter of 2003 when compared to 45 percent of net revenues
in the previous 2003 quarter. Compared to the same 2002 quarter,
telco ratio declined by more than a percentage point.

In the nine months ending September 30, 2003, EBITDA reached 1.3
billion representing a growth of 15.9 percent when compared to
the same 2002 period. EBITDA margin rose to 25.2 percent compared
to 20.1 percent in the first nine months of 2002. The margin
improvement results from improved telco ratio and lower allowance
for doubtful receivables.

EBIT

In the third quarter of 2003, EBIT was R$267 million compared to
R$92 million in the previous 2003 quarter and R$154 million in
the third quarter of 2002.

Year-to-date EBIT was R$436 million representing an operating
margin of 8.4 percent and an 55.3 percent increase when compared
to the first nine months of 2002.

NET INCOME

Net income was R$15 million in the third quarter of 2003 compared
to a net income of R$128 million in the second quarter of 2003
and a loss of R$550 million in the third quarter of 2002. The
quarter-over quarter decline in earnings results from the impact
of the depreciation of the Real vis-a-vis the foreign currencies
on the company's unhedged foreign currency debt. The Real
depreciated against the US dollar and the Yen between June 30,
and September 30, 2003. Compared to the third quarter of 2002,
the improvement in net income results from the appreciation of
the Real. Between September 30, 2002 and September 30, 2003, the
Brazilian currency appreciated relative to the US dollar, 25
percent.

Note that financial expense in the quarter were R$164 million. Of
this amount, R$51 million represent expenses related financial
transactions such as taxes and expenses reclassified under
financial expenses as explained above, and R$113 million were the
actual interest expenses comparable to the R$108 million
financial expenses of the previous 2003 quarter. In the third
quarter 2002, financial expenses would have been R$172 million of
which R$80 million are reclassified financial expense related
taxes and expenses and the remaining R$92 million are interest
expenses per se.

Net income in the first nine months of the year was R$155 million
compared to a loss of R$738 million in the same period of the
prior year.

FINANCIAL POSITION

Cash position on September 30, 2003 was R$685 million. Embratel
ended the quarter with a total outstanding debt of R$4.0 billion.
Net debt fell to R$3.3 billion from R$3.4 billion in the previous
2003 quarter. Short term debt (accrued interest, short term debt
and current maturity long term debt in the next 12 months) is
R$1.4 billion of which R$478 million is part of the financing
agreement and therefore will be rolled over for a period of 2
years at each original maturity.

During the quarter Embratel repaid R$187 million of debt, net of
new additions, reducing the company's overall outstanding debt.
"Our improved cash generation has permitted us to reduce
outstanding debt for the third consecutive quarter", said Norbert
Glatt, CFO of Embratel. Approximately 86 percent of the debt that
matured and was rolled over in the third quarter of 2003 was
converted into Reais.

The financing for the Star One new satellite - approximately
US$200 million (10 year tenor at an all-in-cost of US$ + 5.8
percent) has already been secured and will gradually be disbursed
as the construction phases of the satellite are completed.

RECEIVABLES

The company's net receivable position on September 30, 2003 was
R$1.5 billion. The increase in receivables is associated with the
growth in voice revenues. The voice aging profile has continued
to improve: 80.9 percent of net voice receivables were current at
the end of the third quarter of 2003 compared to 75.7 percent at
the end of the second quarter 2003. Despite the increase in
receivables, days-sales-outstanding, based on net receivables,
remained at the same level as in the previous quarter: 60 days
compared to 59 days in the second quarter of 2003.

CAPEX

Total capital expenditures in the quarter were R$141 million. The
breakout of this expenditure is the following: local
infrastructure and access - 16.3 percent (including PPIs); data
and Internet services - 23.0 percent; network infrastructure -
2.1 percent, others - 23.0 percent and Star One - 35.6 percent.
Accumulated capex in the first nine months of 2003 was R$283
million. We expect that total capex for 2003 to remain below
R$600 million.

REGULATORY

Tariffs

On June 27, 2003 Anatel approved average tariff increase using
the IGP-DI index as established in the concession agreements.
This rate increase was challenged by public authorities in the
Brazilian Courts. The rate increase currently in place is based
on an injunction dated September 11, 2003 rendered by a Federal
Court which altered the IGP-DI index to the IPCA index in the
concession contract formula. As such, consumer tariffs as well as
interconnection rates were allowed to increase by the IPCA minus
the productivity factor. This issue is still subject to an
ongoing judicial process and a final decision.

M&A ACTIVITY

Early fourth quarter of 2003, Embratel concluded the sale of its
Clearinghouse subsidiary. The sale of this asset combined with
the sale of its participation in Intelsat in the previous quarter
raised US$57 million of cash.

Embratel no longer expects to acquire AT&T Latin America's five
subsidiaries in South America. The company actively participated
in this Chapter 11, 363 sale process, up to the point where it
thought the acquisition price was consistent and accretive to its
business.

The Vesper acquisition has made progress and documentation has
been filed to obtain approval for the transaction with the
regulatory agencies.

Embratel is the premier communications provider in Brazil
offering a wide array of advanced communications services over
its own state of the art network. It is the leading provider of
data and Internet services in the country and is well positioned
to be the country's only true national, local service provider
for corporates. Service offerings: include telephony, advanced
voice, high-speed data communication services, Internet,
satellite data communications, corporate networks and local voice
services for corporate clients. Embratel is uniquely positioned
to be the all-distance telecommunications network of South
America. The Company's network is has countrywide coverage with
28,868 km of fiber cables comprising 1,068,657 km of optic
fibers.

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


TELEMAR: Oi Reaches 3 Million Subscribers
-----------------------------------------
After only 16 months of operations, Oi, the wireless arm of
Telemar beats another challenge by achieving ahead of time the
target of 3 million subscribers it had scheduled for the end of
2003.



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

ENDESA CHILE: Places Bonds for Over $200M on the Local Market
-------------------------------------------------------------
- A strong demand for these papers developed on the market,
exceeding UF 14,200,000g

- The first series of these bonds was issued at a rate of 5.65%
and the second at a rate of 6.74%

- The resources raised from this operation, which forms part of
the Financial Strengthening Plan, will go towards refinancing
company debt

The bonds issued for a total value of over US$200,000 by Endesa
Chile, a subsidiary of Enersis, were successfully placed on the
local market late Friday.

The placement was made in two series, each for a value of UF 4
million.

The first of these was met with a demand of UF 7,276,000 and was
placed at a rate of 5.65% with a 7-year term. The second was
placed at a 25-year term at a rate of 6.74% and attracted an
investment of UF 6,943,000.

The resources obtained from this operation, which forms part of
the Financial Strengthening Plan, will be utilized to refinance
the company's debts.


TELEFONICA CTC: S&P Unlikely To Up Ratings Despite Improvements
---------------------------------------------------------------
Compania de Telecomunicaciones de Chile S.A. (CTC, BBB/Positive/-
-), the largest Chilean telecommunication operator, reported
significant improvement in bottom-line profitability as of
September 2003 compared to losses in the first nine months of
2002, mainly due to severances from headcount reduction and
losses from Terra Network's lower market value registered in
2002.

In 2003, profitability was favored by the revaluation of the
Chilean peso against the dollar, which added to the 17% debt
reduction since the end of September 2002, resulting in lower
interest costs. Despite the 7.6% drop in revenues year on year
mainly due to divestments, EBITDA margins remained fairly stable.

Headcount, cost reductions, and mobile segment growth have helped
to offset an increase in fixed-line uncollectables and lower
subscriber base (mostly due to the migration of low income
clients to mobile prepaid telephony), the negative trend in the
long-distance segment, and higher GSM and ADSL costs.

Coverage ratios have benefited also from lower debt and lower
rates translating into higher EBITDA interest coverage of 5.8x in
the first nine months of 2003, from 4.9x for the same period of
2002.

In spite of these improvements, regulations remain the main
challenge. As a result, Standard & Poor's Ratings Services is not
likely to raise its ratings on CTC until the next regulatory
setting process is finalized in 2004 in a way that is favorable
to the company's performance and business position.

ANALYSTS:  Ivana Recalde, Buenos Aires (54) 114-891-2127
           Marta Castelli, Buenos Aires (54) 114-891-2128



===============
C O L O M B I A
===============

* S&P Affirms Republic of Colombia's Long-Term Ratings
------------------------------------------------------
Standard & Poor's Ratings Services said Monday that it affirmed
its 'BB' long-term foreign currency and 'BBB' long-term local
currency sovereign credit ratings on the Republic of Colombia in
light of the likely failure of the government to pass most of the
measures contained in the national referendum held on Saturday,
Oct. 25, 2003. These measures include a freeze in wages,
pensions, and salaries, which was important to broadly meet the
government's fiscal targets with the International Monetary Fund,
especially in 2004.

Standard & Poor's also said that the outlook is stable.

"Although the failure of the referendum was a clear setback for
the Uribe administration, the government will present a back-up
plan, which includes a combination of additional tax measures and
cuts in spending," said Standard & Poor's sovereign credit
analyst Richard Francis. President Uribe maintains a high
popularity rating (more than 70%), so passage of additional
measures by the Congress is likely. "However, if the government
fails to pass and implement needed fiscal measures by year-end,
the ratings could come under downward pressure," Mr. Francis
added.

ANALYST: Richard Francis, New York (1)-212-438-7348


* Fitch Affirms Republic of Colombia's Long-Term Ratings
--------------------------------------------------------
Standard & Poor's Ratings Services said on Monday that it
affirmed its 'BB' long-term foreign currency and 'BBB' long-term
local currency sovereign credit ratings on the Republic of
Colombia in light of the likely failure of the government to pass
most of the measures contained in the national referendum held on
Saturday, Oct. 25, 2003. These measures include a freeze in
wages, pensions, and salaries, which was important to broadly
meet the government's fiscal targets with the International
Monetary Fund, especially in 2004.

Standard & Poor's also said that the outlook is stable.

"Although the failure of the referendum was a clear setback for
the Uribe administration, the government will present a back-up
plan, which includes a combination of additional tax measures and
cuts in spending," said Standard & Poor's sovereign credit
analyst Richard Francis. President Uribe maintains a high
popularity rating (more than 70%), so passage of additional
measures by the Congress is likely. "However, if the government
fails to pass and implement needed fiscal measures by year-end,
the ratings could come under downward pressure," Mr. Francis
added.

ANALYST:  Richard Francis
          New York
          Phone: (1)-212-438-7348



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

ECUADORIAN BANKS: AGD Kicks Off Liquidation Process
---------------------------------------------------
The liquidation process of eight intervened Ecuadorian financial
institutions will commence November 15, Business News Americas
reports.

The institutions scheduled to undergo the process are: Finiber,
Amerca, Valorfinsa and Necmancorp as well as four banks:
Financorp, Azuay, Tungurahua and Occidente.

Ecuador's deposit insurance agency AGD, which controls these
institutions, scheduled the liquidation process in a bid to clean
up the local financial system in return for greater flexibility
on the part of the International Monetary Fund in its future
policy towards Ecuador.

Meanwhile, Finance Minister Mauricio Pozo will present to IMF
representatives the definitive list of financial entities
targeted for liquidation as a clear signal of the government's
determination to balance the financial system's books.



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

AIR JAMAICA: Expands Codeshare Offerings With Delta Air Lines
-------------------------------------------------------------
Delta Air Lines and Air Jamaica announced Monday the expansion of
their codeshare service between several cities in the United
States and Jamaica.

The new codeshare flights are from Baltimore, Chicago, Ft.
Lauderdale, Houston, Orlando and Philadelphia to Montego Bay,
Jamaica, and from Ft. Lauderdale to Kingston, Jamaica. These new
flights are effective immediately.

At the present time, Delta operates one daily non-stop flight
between Atlanta and Montego Bay, while Air Jamaica operates
service to the island from Atlanta, Baltimore, Boston, Chicago,
Ft. Lauderdale, Houston, Los Angeles, Miami, New York (JFK and
Newark), Orlando and Philadelphia to Montego Bay, as well as from
Ft. Lauderdale, Miami and New York to Kingston.

Delta already has its code on Air Jamaica flights from Atlanta,
Boston, Los Angeles, Miami and New York (JFK and Newark) to
Montego Bay, as well as beyond Montego Bay to Antigua, Barbados,
Bonaire, Curacao, Grenada and St. Lucia. Delta also places its
code on Air Jamaica flights from Miami and New York (JFK) to
Kingston. Air Jamaica has placed its code on Delta flights
between Montego Bay and Atlanta, and beyond Atlanta to
Cincinnati, Los Angeles, Memphis, Nashville and Phoenix.

Delta Air Lines, the world's second largest airline in terms of
passengers carried and the leading U.S. carrier across the
Atlantic, offers 6,130 flights each day to 453 destinations in 82
countries on Delta, Song, Delta Shuttle, Delta Connection and
Delta's worldwide partners. Delta is a founding member of
SkyTeam, a global airline alliance that provides customers with
extensive worldwide destinations, flights and services. For more
information, please go to delta.com .

CONTACT:  Delta Air Lines, Inc.
          Phone: +1-404-715-2554
          Home Page: http://www.delta.com

          Air Jamaica
          4 St. Lucia Avenue
          Kingston 5,
          Jamaica
          Phone: 876/922-3460
          Fax: 929-5643
          E-mail: webinfo@airjamaica.com



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

GRUPO TMM: TFM Wants Judge to Interpret Purchase-Sale Accord
------------------------------------------------------------
Grupo TMM, S.A. announced that Grupo TFM has requested a federal
judge in Mexico to provide an appropriate interpretation of the
Purchase-Sale Agreement of TFM's common stock, as outlined in the
Agreements, dated January 31. 1997, and June 9 1997,
respectively. Grupo TFM is requesting adherence to the process,
which must be complied with in order for the government to
exercise its Put option for its 20 percent equity interest in
TFM.

When the Mexican government opened the Mexican railroad system to
private investment, it retained a 20 percent equity interest in
TFM. The intention was to sell these shares in the equity market
through a public offering, when considered appropriate and with
approval of the Mexican Securities Registry ("Registro Nacional
de Valores") and the National Banking and Securities Commission
("Comision Nacional Bancaria y de Valores" or "CNBV"), with the
objective of strengthening the market for public investments in
Mexico and encouraging additional investors to participate in the
capital stock of TFM. Additionally, TFM's bid contained the
following condition: "The franchise purchasers will be obligated
to acquire the equity portion that cannot be placed in the
Mexican Securities Market ("Bolsa Mexicana de Valores" or "BMV"),
at the initial offering price plus respective interest."

The Mexican government is obligated to comply with the following
process in order to sell the equity interest the government
retains in TFM: 1) carry on the necessary formalities to register
the shares with the BMV; 2) receive approval of the CNBV; 3) the
Mexican government is to request that TFM provide all information
necessary to place its equity stake in the market; and 4) the
Mexican government will place the number of shares it is able to
place in the equity market once all necessary approvals are
granted. When the above steps are completed, the Mexican
government is to notify Grupo TFM of the number of remaining
shares that could not be placed in the equity market and is to
request Grupo TFM to acquire those shares at a minimum stipulated
price.

Since none of the above steps of the process have been completed,
and the real value of the shares of TFM owned by the government
cannot be determined because TFM has not received reimbursement
of a Value Added Tax, ordered by the Mexican Fiscal Court on
August 13, there can be no condition that applies in order for
the Mexican government to request that Grupo TFM acquire the
equity stake held at TFM by the government.

Grupo TFM acknowledges its commitment to acquire the equity
interest that the Mexican government holds in TFM and has
informed the government of its desire to comply with the pending
steps from the original Agreement as listed above once the
aforementioned formalities and conditions have been fulfilled.
For all of the above reasons, Grupo TFM has requested that a
federal judge rules in favor on an appropriate interpretation of
the Purchase-Sales Agreement and amended Agreement.

Headquartered in Mexico City, Grupo TMM is a Latin American
multimodal transportation company. Through its branch offices and
network of subsidiary companies, Grupo TMM provides a dynamic
combination of ocean and land transportation services. Grupo TMM
also has a significant interest in TFM, which operates Mexico's
Northeast railway and carries over 40 percent of the country's
rail cargo. Grupo TMM's web site address is www.grupotmm.com and
TFM's web site is www.tfm.com.mx.

CONTACT:  GRUPO TMM
          Investor Relations:
          Brad Skinner
          Phone: 011-525-55-629-8725
                 203-247-2420
          Email: brad.skinner@tmm.com.mx

          Proa/StructurA
          Media Relations:
          Marco Provencio
          Phone: 011-525-55-629-8708
                 011-525-55-442-4948
          Phone: mp@proa.structura.com.mx

          DRESNER CORPORATE SERVICES:
          General Investors, Analysts and Media:
          Kristine Walczak
          Phone: 312-726-3600
          Email: kwalczak@dresnerco.com


TFM: S&P Lowers Ratings on KCS
------------------------------
Standard & Poor's Ratings Services said Monday that it lowered
its long-term corporate credit ratings on Kansas City Southern
and Kansas City Southern Railway Co. to 'BB-' from 'BB'. In
addition, Standard & Poor's lowered Kansas City Southern Railway
Co.'s senior unsecured debt rating to 'B+' from 'BB-' and
affirmed its 'BB+' senior secured debt rating. Kansas City
Southern's preferred stock rating was lowered to 'B-' from 'B'.
All ratings were removed from CreditWatch, where they were placed
April 1, 2003. The outlook is negative.

"The downgrades reflect Standard & Poor's belief that the
expected improvement in financial measures will not occur as
quickly as anticipated and that uncertainties and potential
funding requirements related to the company's investment in TFM
S.A. de C.V. (TFM, B+/Watch Developing/--) will likely put
pressure on the financial profile over the near to intermediate
term," said Standard & Poor's credit analyst Lisa Jenkins.

The affirmation of the senior secured debt rating reflects
Standard & Poor's belief of a very strong likelihood of recovery
of principal for bank lenders in the event of a default or
bankruptcy, given the significant amount of collateral the
company has and the relatively small proportion of secured debt
in the capital structure. The Kansas City, Mo.-based Class 1
railroad has about $860 million of debt (adjusted for operating
leases).

Although Kansas City Southern is a Class 1 (major) railroad, it
is significantly smaller and less diversified than its peers.
Operating results have been depressed by the weak economy and
increased cost pressures (especially fuel) over the past year.
Results in 2002 were also adversely affected by complications
arising from the implementation of a new transportation computer
system in the second half of the year.

Although this system is now helping the company manage its rail
operations more efficiently (as is reflected in improving service
metrics), the company's operating ratio (operating expenses,
including depreciation, as a percentage of revenues) remains
significantly weaker (higher) than average among Class 1
railroads.

Since the late 1990s, Kansas City Southern has maintained an
ownership interest in the main privatized Mexican railroad (TFM).
In April 2003, Kansas City Southern announced a series of
agreements with TMM under which Kansas City Southern would gain
control of TFM and the Texas Mexican Railway Co. However, TMM's
shareholders voted against the transaction in August 2003,
despite the fact that the controlling shareholder is also the
chairman and chief executive of TMM. The two companies are now in
a dispute over whether TMM shareholder approval is required for
the transaction to go forward and whether the merger agreement
remains in effect.

Adding to financial risk and uncertainty in the near-to-
intermediate term is the Mexican government's right to exercise a
put of its ownership interest in TFM to Grupo TFM (TFM's holding
company) this fall. If Grupo TFM does not purchase the
government's interest, TMM and Kansas City Southern would be
obligated to purchase the government's interest. If TMM could not
purchase its pro rata share, Kansas City Southern would be
obligated to pay the total purchase price that, measured as of
June 30, 2003, was about $491 million.

Ratings incorporate room for the company to pay its portion of
the put option or for the company to complete the TFM transaction
as originally proposed. However, if Kansas City Southern is
forced to pay the full amount of the put, or if financial
performance at Kansas City Southern or TFM weakens from expected
levels, or if the TFM deal goes forward under more onerous terms,
ratings could be reviewed for a further downgrade.

ANALYST: Lisa Jenkins, New York (1) 212-438-7697



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

ESSALUD: Settles Wage Dispute With Workers
------------------------------------------
Peru's public health agency EsSalud and its workers have reached
a wage settlement agreement, paving the way for an end to a
strike lodged by the workers, relates Business News Americas.

Under the agreement reached between the workers' union
representatives and EsSalud's executive president, Jose Luis
Chirinos, an improved monthly wage structure will be created.

Furthermore, a technical committee will be set up to determine
the feasibility of the proposed 150-hour monthly working
schedule.

Chirinos told local paper Expreso earlier that EsSalud is
preparing to trim its management structure as part of the
agency's latest cost-cutting plans. The executive suggested that
the proposed reforms to the agency's administrative system will
result in a saving of PEN85 million (US$24.4 million) through the
elimination of 450 managerial posts by end-October.

Already, 166 employees have left their posts at the agency's
headquarters as part of the first phase of the staff cuts.



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

IVSS: Commences Medical Debt Repayment Program
----------------------------------------------
Jesus Viloria Juarezas, the president of Venezuela's social
security agency, the IVSS, revealed the agency has entered the
first phase of a medical debt repayment program, relates local
daily El Universal.

The first stage, according to the report, calls for IVSS to pay
between 25-40% of the total debt held with specialized
pharmaceutical suppliers.

Meanwhile, Viloria announced that a recent agreement with
suppliers' representatives also ensures the fresh supply of
medicine starting this week.

The debt repayment program was launched amid provisional measures
taken by the agency to guarantee the nationwide supply of
medicine up to February next year.


PDVSA: Files 2002 Annual Report With the U.S. SEC
-------------------------------------------------
Venezuela's state-owned oil company Petroleos de Venezuela SA
filed its 2002 annual report with U.S. regulators on Friday, the
AP Online reports.

The recently filed results showed that PDVSA's net profit in 2002
plunged 37%, to US$2.5 billion, from 2001. The Company attributed
the plunge to the Dec.2-Feb.1 nationwide strike, which cut into
sales and exports.

Meanwhile, Energy and Mines Minister Rafael Ramirez said that
PDVSA will "soon hold its general shareholders assembly, where
the 2004 investment plan will be announced."

Investments last year totaled US$2.96 billion, a decline from
US$3.8 billion in 2001. The Company paid US$9.3 billion to the
government in royalties, dividends and taxes last year, down from
US$11.8 billion in 2001.

PDVSA was originally scheduled to file the report with the U.S.
Securities and Exchange Commission on June 30. However, the
Company missed the deadline following a disruption in its
accounting system due to the strike.

Extensions from the SEC aren't uncommon. PDVSA is required to
file with the U.S. SEC because several wholly owned units operate
in the United States.




               ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. 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.


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