TCRLA_Public/040921.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

          Tuesday, September 21, 2004, Vol. 5, Issue 187

                            Headlines

A R G E N T I N A

ASIARA S.R.L.: Court Approves Creditor's Liquidation Motion
CASA MALIAR: Creditor Seeks Bankruptcy; Court OK's Petition
CHALET S.A.: Scheduled to Liquidate Assets
CINEMATOGRAFICA LARA: Debt Default Leads to Bankruptcy
EL PUERTO: Court-Required Reports Timeline Set

FARMACEUTICOS ARGENTINOS: Court Authorizes Reorganization
IMEMIT S.R.L.: Reorganization Motion Gets Court Approval
INDUSTRIAS MBA: Court Mandates Report Submission Dates
IN TEC: Court Outlines Required Document Deadlines
JIF S.A.: Seeks Reorganization Approval from Court

LEFTER S.R.L.: Court Opens Bankruptcy Proceedings
LINCOLN RESEARCH: Court Declares Company Bankrupt
SOCIEDAD COMERCIALIZADORA: Seeks Court-Approved Reorganization
* ARGENTINA: IMF Extends $1.1B Debt Repayment Deadline


B E R M U D A

FOSTER WHEELER: Extends Exchange Offer to September 21
FOSTER WHEELER: Recalculates Interest on New Notes to 10.359%
GOLDEN EAGLE: Members Appoint Ester Querido as Liquidator
MCDANIEL AND WINGOOD: Liquidator Schedules General Meeting


B R A Z I L

ACESITA: Issues Additional Info on Reverse Stock Split
BANCO CITIBANK: LTFC Global Scale Rating Climbs to BB- From B+
BANCO DO BRASIL: S&P Ups LTFC Global Scale Rating
BANCO ITAU: Sovereign Upgrade Pushes LTFC Ratings Higher
BANCO SANTANDER BRASIL: LTFC Global Scale Rating Ascends to BB-

BANCO SANTANDER MERIDIONAL: S&P Ups LTFC Global Scale Rating
BANCO VOTORANTIM: S&P Raises Rating Following Sovereign Upgrade
BANESPA: S&P Raises LTFC Rating Following Sovereign Upgrade
CEMIG: Appoints Setape to Conduct Asset Valuation
HSBC BANK BRASIL: Sovereign Upgrade Pushes LTFC Ratings Higher

UNIBANCO: LTFC Global Scale Rating Climbs to BB- From B+
* S&P Raises Brazil Rating To BB-; Outlook Stable


G R E N A D A

* Hurricane Ivan Prompts S&P Ratings Reduction


M E X I C O

GRUPO POSADAS: S&P Rates Notes BB-; Leverage Levels Questioned


T R I N I D A D   &   T O B A G O

BWIA: Jacelon Tapped to Take Over As Chairman


U R U G U A Y

PARMALAT URUGUAY: To Have New Owner Soon


V E N E Z U E L A

HARVEST NATURAL: Cash Position Improves; Moody's Ups Ratings


     - - - - - - - - - -

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

ASIARA S.R.L.: Court Approves Creditor's Liquidation Motion
-----------------------------------------------------------
Court No. 4 of Buenos Aires' civil and commercial tribunal
declared local export services company Asiara S.R.L. bankrupt,
says Clarin. The ruling comes in approval of the bankruptcy
petition filed by the Company's creditor, Mr. Gustavo Basso, for
nonpayment of US$25,594 in debt.

Clerk No. 8 assists the court on the case, which will conclude
with the liquidation of the Company's assets to repay its debts.

CONTACT: Asiara S.R.L.
         Marcelo Torcuato de Alvear 952
         Buenos Aires


CASA MALIAR: Creditor Seeks Bankruptcy; Court OK's Petition
-----------------------------------------------------------
Tejeduria Galicia S.A. successfully sought for the bankruptcy of
Casa Maliar S.A. after court no. 19 of Buenos Aires' civil and
commercial tribunal declared the Company "Quiebra," reports
Clarin.

The creditor sought for the Company's bankruptcy after the
latter failed to pay debts amounting to US$7,400. Clerk No. 37
assists the court on the case, which will close with the
liquidation of all the Company's assets.

CONTACT: Casa Maliar S.A.
         Avda. Raul Scalabrini Ortiz 339
         Buenos Aires


CHALET S.A.: Scheduled to Liquidate Assets
------------------------------------------
Chalet S.A. entered bankruptcy after court no. 5 of Buenos
Aires' civil and commercial tribunal approved a bankruptcy
motion filed by Union de Obreros y Empleados Plasticos, reports
Clarin. The Company's failure to pay US$26,886 in debt prompted
the union to file the petition.

The Company's assets will be liquidated at the end of the
bankruptcy process to repay creditors. Payments will be based on
the results of the verification process.

Clerk no. 9 assist the court on this case.

CONTACT: Chalet S.A.
         Avda. Luis Maria Campos 1270.
         Buenos Aires


CINEMATOGRAFICA LARA: Debt Default Leads to Bankruptcy
------------------------------------------------------
Local film outfit Cinematografica Lara. S.R.L. entered
bankruptcy protection upon the orders of court no. 17 of Buenos
Aires' civil and commercial tribunal. A bankruptcy petition was
filed against the company after it defaulted on a US$76,318
debt.

Clerk no. 33 assist the court on this case that will end with
the liquidation of all the company's assets to repay its debts.

CONTACT: Cinematografica Lara. S.R.L.
         Avda. de Mayo 1225
         Buenos Aires


EL PUERTO: Court-Required Reports Timeline Set
----------------------------------------------
Ms. Lea Beatriz Aljanati, the trustee assigned to supervise the
liquidation of El Puerto S.A., will submit the validated
individual claims for court approval on October 12, 2004. These
reports will be the basis for the accepted and rejected claims.
The trustee will also submit a general report on February 7,
2005.

Infobae reports that court no. 18 of Buenos Aires' civil and
commercial tribunal has jurisdiction over the bankruptcy
proceedings. Clerk no. 35 assist the court on the case.

CONTACT: Ms. Lea Beatriz Aljanati, Trustee
         Avda Honorio Pueyrredon 1576
         Buenos Aires


FARMACEUTICOS ARGENTINOS: Court Authorizes Reorganization
---------------------------------------------------------
Farmaceuticos Argentinos S.A., a pharmacy operating in Buenos
Aires, will begin reorganization proceedings after court no. 6
of the city's civil and commercial tribunal approved its
"concurso preventivo" petition. Reorganization will allow the
company to negotiate a settlement with its creditors in order to
prevent a straight liquidation.

Local news source Clarin reports that clerk no. 12 assist the
court in resolving this case.

CONTACT: Farmaceuticos Argentinos S.A.
         Av. Julio Argentino Roca 636
        (1067) Buenos Aires
         Tel.: 4343-5232


IMEMIT S.R.L.: Reorganization Motion Gets Court Approval
--------------------------------------------------------
Imemit S.R.L., a company operating in San Isidro, begins
reorganization proceedings after court no. 9 of the city's civil
and commercial tribunal granted its petition for "concurso
preventivo." During the reorganization, the company will be able
to negotiate a settlement proposal for its creditors so as to
avoid a straight liquidation.  

According to Argentine news source Infobae, the reorganization
will be conducted under the direction of Mr. Carlos Felix
Ocaranza, the court-appointed trustee.

Creditors with claims against the Company must present proofs of
the debt to the trustee by December 6, 2004. The Company is set
to present a completed settlement plan for its creditors on July
4 next year.

CONTACT: Imemit S.R.L.
         Zufriategui 4741 Villa Martelli
        (Partido de Vicente Lopez)
   
         Mr. Carlos Felix Ocaranza, Trustee
         Martin y Omar 129
         San Isidro


INDUSTRIAS MBA: Court Mandates Report Submission Dates
------------------------------------------------------
Ms. Andrea Rut Cetlinas, the trustee overseeing the liquidation
of Industrias M.B.A. S.R.L., will submit the validated
individual claims for court approval on December 23, 2004. The
individual reports are based on all claims forwarded by
creditors during the verification period.

Infobae reports that Ms. Cetlinas will also provide the court
with an audit of the Company's accounting and business records
through a general report scheduled for submission on March 10
next year.

The bankruptcy ruling issued by court no. 2 of Buenos Aires'
civil and commercial tribunal comes in approval of the petition
filed by the Company's creditor, Novello S.A., for nonpayment of
US$26,000 in debt.

CONTACT: Ms. Andrea Rut Cetlinas, Trustee
         Lavalle 1678
         Buenos Aires


IN TEC: Court Outlines Required Document Deadlines
--------------------------------------------------
Court No. 24 of Buenos Aires' civil and commercial tribunal
scheduled the submission of individual reports from the In Tec
S.R.L. bankruptcy on November 17, 2004. After the individual
reports are submitted, the court expects to receive the general
report on December 29, 2004.

Ms. Haydee Kravetz serves as trustee for this case that will end
with the liquidation of all Company assets in order to pay debts
owed to its creditors.

CONTACT: Ms. Haydee Kravetz, Trustee
         Leandro N Alem 651
         Buenos Aires


JIF S.A.: Seeks Reorganization Approval from Court
--------------------------------------------------
Court No. 10 of Buenos Aires' civil and commercial tribunal is
currently reviewing the merits of the reorganization petition
filed by local footwear manufacturer Jif S.A., reports Clarin.

The reorganization petition, if granted by the court, will allow
the Company to negotiate a settlement with its creditors in
order to avoid a straight liquidation.

Clerk No. 20 assists the court on this case.

CONTACT: Jif S.A.
         Jose L. Suarez 2435
               Or
         Bahia Blanca 2544
         Buenos Aires
         Phone: 4687-3465       


LEFTER S.R.L.: Court Opens Bankruptcy Proceedings
-------------------------------------------------
Local fruit juice manufacturer Lefter S.R.L. proceeds with the
liquidation of its assets, reports Clarin. Court no. 17 of
Buenos Aires' civil and commercial tribunal issued the
bankruptcy order after the company defaulted on its debt
obligations. Clerk no. 33 assist the court on this case.

CONTACT: Lefter S.R.L.
         Muniz 296
         Buenos Aires


LINCOLN RESEARCH: Court Declares Company Bankrupt
-------------------------------------------------
Court no. 24 of Buenos Aires' civil and commercial tribunal
declared business consultancy firm Lincoln Research S.A.
"Quiebra", relates Clarin. The order comes in approval of the
petition filed by Lloyds Bank, whom the Company owes US$15,896
in debt.

Under bankruptcy protection, control of the Company's assets
will be transferred to a court-appointed trustee. Clerk No. 47
assists the court on the case.

CONTACT: Lincoln Research S.A.
         Salta 1007
         Buenos Aires


SOCIEDAD COMERCIALIZADORA: Seeks Court-Approved Reorganization
--------------------------------------------------------------
Buenos Aires-based Sociedad Comercializadora de Carnes S.A.
requested for reorganization after defaulting on its debt
payments. The reorganization petition, once approved by the
court, will allow the company to negotiate a settlement with its
creditors in order to avoid a straight liquidation.

Infobae reports that the case is pending before Court No. 5 of
the city's civil and commercial tribunal. Clerk no. 10 assists
the court on this case.

CONTACT: Sociedad Comercializadora de Carnes S.A.
         Rivadavia 1273
         Buenos Aires


* ARGENTINA: IMF Extends $1.1B Debt Repayment Deadline
------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF)
approved Friday a one-year extension of Argentina's repayment
expectations to the IMF in the total amount equivalent to SDR
779 million (about US$1.1 billion) arising in 2004 on September
20, October 15, November 22, December 9 and December 20, and on
January 17, 2005. The repayments will now fall due exactly one
year after these dates.

IMF policy on repayment expectations allows for such extension
where the member's external position is not sufficiently strong
for it to repay early without undue hardship or risk. Because a
decision to approve an extension of repayment expectations is a
technical one, it is not based on an assessment of the
authorities' economic program. During the four-month period in
question, Argentina will still face obligations to the Fund of
about SDR 1 billion (about US$1.46 billion). The authorities are
committed to remaining current in payments to the Fund.

During the meeting, Argentina was urged to decisively address
all the outstanding structural issues in their program, and to
complete a comprehensive and sustainable debt restructuring.
Contacts between the IMF and the authorities on the policy
framework going forward will continue.

CONTACT: International Monetary Fund
         External Relations Department
         700 19th Street, NW
         Washington, D.C. 20431 USA
         Public Affairs
         Phone: 202-623-7300
         Fax: 202-623-6278
         Media Relations
         Phone: 202-623-7100
         Fax: 202-623-6772



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

FOSTER WHEELER: Extends Exchange Offer to September 21
------------------------------------------------------
Foster Wheeler Ltd. (OTCBB: FWLRF) announced Friday that a
minimum threshold related to its equity-for-debt exchange
remains unmet for one class of securities. Specifically, 57.5%
of the revised minimum threshold of 60% has been tendered by
holders of the 9.00% Preferred Securities. Foster Wheeler is
extending its exchange offer until 5:00 p.m., New York City
time, on September 21, 2004.

"Unless the tendered amount of Preferred Securities meets or
exceeds an acceptable minimum threshold, this exchange offer
will fail," said Raymond J. Milchovich, chairman, president and
chief executive officer. "Especially given that we have exceeded
the minimum thresholds regarding every other class of securities
involved in our exchange offer, it would be a shame if all our
stakeholders were forced to suffer because of a small shortfall
in the Preferred Securities."

"We hope that all those who have tendered continue to do so, and
that those still holding Preferred Securities tender them, so
that we can close our offer [September 21]," continued Mr.
Milchovich.

If Foster Wheeler fails to complete the exchange offer, it is
then obligated, subject to certain conditions, to commence and
attempt to consummate the same economic transactions
contemplated by the exchange offer through an alternative
implementation structure.

This obligation is contained in the lock-up agreements signed
with various institutional holders of the company's debt
securities, and it is more fully described in the registration
statement on Form S-4 filed with the SEC relating to the
proposed exchange offer. Foster Wheeler continues to actively
consider such alternatives.

Legal Details

The securities proposed to be exchanged are as follows:

1) Foster Wheeler's Common Shares and its Series B Convertible
Preferred Shares (the "Preferred Shares") and warrants to
purchase Common Shares for any and all outstanding 9.00%
Preferred Securities, Series I issued by FW Preferred Capital
Trust I (liquidation amount $25 per trust security) and
guaranteed by Foster Wheeler Ltd. and Foster Wheeler LLC,
including accrued dividends;

2) Foster Wheeler's Common Shares and Preferred Shares for any
and all outstanding 6.50% Convertible Subordinated Notes due
2007 issued by Foster Wheeler Ltd. and guaranteed by Foster
Wheeler LLC;

3) Foster Wheeler's Common Shares and Preferred Shares for any
and all outstanding Series 1999 C Bonds and Series 1999 D Bonds
(as defined in the Second Amended and Restated Mortgage,
Security Agreement, and Indenture of Trust dated as of October
15, 1999 from Village of Robbins, Cook County, Illinois, to
SunTrust Bank, Central Florida, National Association, as
Trustee); and

4) Foster Wheeler's Common Shares and Preferred Shares and up to
$150,000,000 of Fixed Rate Senior Secured Notes due 2011 of
Foster Wheeler LLC guaranteed by Foster Wheeler Ltd. and certain
Subsidiary Guarantors for any and all outstanding 6.75% Senior
Notes due 2005 of Foster Wheeler LLC guaranteed by Foster
Wheeler Ltd. and certain Subsidiary Guarantors; and solicitation
of consents to proposed amendments to the indenture relating to
the 9.00% Junior Subordinated Deferrable Interest Debentures,
Series I of Foster Wheeler LLC, the indenture relating to the
6.50% Convertible Subordinated Notes due 2007 and the indenture
relating to the 6.75% Senior Notes due 2005.

As of 5:00 p.m. on September 17, 2004, holders have tendered the
following dollar amounts and percentages of the following
original securities:

1) 9.00% Preferred Securities, $100,696,725 (57.5%);
2) 6.50% Convertible Subordinated Notes, $209,930,000 (99.97%);
3) Robbins Series C Bonds due 2024, $56,643,071 (73.4%), Robbins
Series C Bonds due 2009, $12,028,197 (99.2%), and Robbins Series
D Bonds, $35,489,277 based on the balance due at maturity
(99.1%); and
4) 6.75% Senior Notes, $191,118,000 (95.6%).

A copy of the prospectus relating to the New Notes and other
related documents may be obtained from the information agent.
The information agent for the exchange offer and consent
solicitation is:

Georgeson Shareholder Communications Inc.
17 State Street, 10th Floor
New York, New York 10014.

Tel: 212-440-9800 (bankers and brokers)
     800-891-3214 (Others)

The dealer manager for the exchange offer and consent
solicitation is:

Rothschild Inc.
1251 Avenue of the Americas, 51st Floor
New York, New York 10020
Tel: 212-403-3784

The exchange agent for the exchange offer is the Bank of New
York, London Branch.

Investors and security holders are urged to read the following
documents filed with the SEC, as amended from time to time,
relating to the proposed exchange offer because they contain
important information: (1) the registration statement on Form S-
4 (File No. 333-107054) and (2) the Schedule TO (File No. 005-
79124). These and any other documents relating to the proposed
exchange offer, when they are filed with the SEC, may be
obtained free at the SEC's Web site at www.sec.gov.

The foregoing reference to the exchange offer and any other
related transactions shall not constitute an offer to buy or
exchange securities or constitute the solicitation of an offer
to sell or exchange any securities in Foster Wheeler Ltd. or any
of its subsidiaries.

Foster Wheeler Ltd. is a global company offering, through its
subsidiaries, a broad range of design, engineering,
construction, manufacturing, project development and management,
research and plant operation services. Foster Wheeler serves the
refining, upstream oil and gas, LNG and gas-to-liquids,
petrochemicals, chemicals, power, pharmaceuticals, biotechnology
and healthcare industries. The corporation is based in Hamilton,
Bermuda, and its operational headquarters are in Clinton, New
Jersey, USA.

CONTACT: Foster Wheeler Ltd.
         Media Contact
         Ms. Maureen Bingert
         Phone: 908-730-4444
             or
         Investor Contact
         Mr. John Doyle
         Phone: 908-730-4270
             or
         Other Inquiries
         Phone: 908-730-4000

         Web Site: http://www.fwc.com/


FOSTER WHEELER: Recalculates Interest on New Notes to 10.359%
-------------------------------------------------------------
Foster Wheeler Ltd. (OTCBB: FWLRF) announced Friday the
recalculated interest rate applicable to the Fixed Rate Senior
Secured Notes due 2011, Series A (the "New Notes"), to be issued
by Foster Wheeler LLC in the equity-for-debt exchange offer that
the company launched on June 11, 2004.

If the exchange offer expires as currently scheduled on
September 21, 2004, the New Notes will bear interest at a rate
of 10.359% per annum. This rate is equal to 6.65% plus the yield
on U.S. Treasury notes having a remaining maturity equal to the
maturity of the New Notes determined as of 2:00 p.m., New York
City time, on the second business day prior to the expiration of
the exchange offer. The terms of the New Notes are described in
the registration statement on Form S-4 (File No. 333-107054)
relating to the exchange offer.

The interest rate set forth above supersedes the rates
previously announced.

A copy of the prospectus relating to the New Notes and other
related documents may be obtained from the information agent.
The information agent for the exchange offer and consent
solicitation is:

Georgeson Shareholder Communications Inc.
17 State Street, 10th Floor
New York, New York 10014.

Tel: 212-440-9800 (bankers and brokers)
     800-891-3214 (Others)

The dealer manager for the exchange offer and consent
solicitation is:

Rothschild Inc.
1251 Avenue of the Americas, 51st Floor
New York, New York 10020
Tel: 212-403-3784

Investors and security holders are urged to read the following
documents filed with the SEC, as amended from time to time,
relating to the proposed exchange offer because they contain
important information: (1) the registration statement on Form S-
4 (File No. 333-107054) and (2) the Schedule TO (File No. 005-
79124). These and any other documents relating to the proposed
exchange offer, when they are filed with the SEC, may be
obtained free at the SEC's Web site at www.sec.gov.

The foregoing reference to the exchange offer and any other
related transactions shall not constitute an offer to buy or
exchange securities or constitute the solicitation of an offer
to sell or exchange any securities in Foster Wheeler Ltd. or any
of its subsidiaries.



GOLDEN EAGLE: Members Appoint Ester Querido as Liquidator
---------------------------------------------------------
        IN THE MATTER OF THE COMPANIES ACT OF 1981

                         and

    IN THE MATTER OF Golden Eagle International Limited

The Members of Golden Eagle International Limited, acting by
written consent without a meeting on July 22, 2004 passed the
following resolutions:

1) THAT the Company be wound up voluntarily, pursuant to the
provisions of the Companies Act 1981;

2) THAT Ester R. Querido be and is hereby appointed Liquidator
for the purposes of such winding-up.

Ms. Querido, acting as liquidator, informs that  

- The Creditors of Golden Eagle International Limited, which is
being voluntarily wound up, are required, on or before October
1, 2004, to send their full Christian and Surnames, their
addresses and descriptions, full particulars of their debts or
claims, and the names and addresses of their solicitors (if any)
to,

Ms. Ester R. Querido,
c/o Messrs. Conyers Dill & Pearman
Clarendon House, Church Street
Hamilton, HM DX
Bermuda

the Liquidator of the said Company, and if so required by notice
in writing from the said Liquidator, and personally or by their
solicitors, to come in and prove their debts or claims at such
time and place as shall be specified in such notice, or in
default thereof they will be excluded from the benefit of any
distribution made before such debts are proved.

- a final general meeting of the Members of the above named
Company will be held at the offices of Messrs. Conyers Dill &
Pearman, Clarendon House, Church Street, Hamilton, Bermuda on
October 20, 2004 at 9:30 a.m., or as soon as possible
thereafter, for the purposes of:

1) receiving an account laid before them showing the manner in
which the winding-up of the Company has been conducted and its
property disposed of and of hearing any explanation that may be
given by the Liquidator; and

2) by resolution determining the manner in which the books,
accounts and documents of the Company and of the Liquidator
shall be disposed of; and

3) by resolution dissolving the Company.

CONTACT: Ms. Ester R. Querido, Liquidator
         c/o 17, Duke Street
         Kingsville Court, Phase II,
         Bo. Mambugan, Antipolo City
         Philippines


MCDANIEL AND WINGOOD: Liquidator Schedules General Meeting
----------------------------------------------------------
         IN THE MATTER OF THE COMPANIES ACT OF 1981

                          and

       IN THE MATTER OF McDaniel and Wingood Limited

Notice is given that the Final General Meeting of McDaniel and
Wingood Limited will be held at the offices of
PricewaterhouseCoopers, Dorchester House, 7 Church Street,
Hamilton, HM 11, Bemuda on October 22 at 10:00 a.m. pursuant to
Section 213 of the Companies Act of 1981, for the purposes of:

1) Receiving an account laid before them showing the manner in
which the Winding-Up has been conducted and the property of the
Company disposed of, and of hearing any explanation that may be
given by the Liquidators; and

2) By resolution determining the manner in which the books,
accounts and documents of the Company, and of the Liquidators
thereof, shall be disposed of; and

Nigel J.S. Chatterjee
Joint Liquidator
September 14, 2004



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

ACESITA: Issues Additional Info on Reverse Stock Split
------------------------------------------------------
The Board of Directors of Acesita S.A. voted on these proposals
during their 572nd Special General Meeting, Held September 10,
2004:

I - REVERSE SPLIT

ACESITA is taking measures to provide a higher level of
liquidity for its share issues. At the same time, BOVESPA is
asking publicly held companies to execute a reverse split of
shares that are still being quoted in terms of "Brazilian reais
per lot of one thousand shares", as is the case of ACESITA, and
thus adapt the unit of quotation to international standards.

In addition to its favoring higher liquidity for the stock, a
reverse split leads to lower operational costs and lends more
efficiency to shareholder control and shareholder relations.

A reverse split is therefore in the interests of the Company and
its shareholders, who will be assured of a mechanism that
enables the adjustment of fractional holdings with the aim of
allowing the interested parties to choose to continue with their
holding, even if they will have just one of the new shares, or
to not reduce their interest in the capital stock.

Therefore the Board of Directors proposes to execute a reverse
split of shares as provided for in Article 12 of Law No. 6404 of
December 15, 1976, in the proportion of ten thousand (10,000)
shares for one (1) share of the corresponding type of stock.

The reverse split does not alter the current capital stock nor
the authorized capital, the seven hundred and forty-five
billion, four hundred and eighty-three million, seven hundred
and seventy-nine thousand and seven hundred and twenty
(745,483,779,720 ) shares, of which two hundred and forty-nine
billion, eight million, six hundred and fifty thousand and four
hundred and seventy-nine (249,008,650,479) are common stock and
four hundred and ninety-six billion, four hundred and seventy-
five million, one hundred and twenty-nine thousand and two
hundred and forty one (496,475,129,241) are preferred stock,
will become seventy-four million, five hundred and forty-eight
thousand and three hundred and seventy-seven (74,548,377)
shares, of which twenty-four million, nine hundred thousand and
eight hundred and sixty five (24,900,865 ) will be common stock
and forty -nine million, six hundred and forty-seven thousand
and five hundred and twelve (49,647,512) will be preferred
stock, all nominative and not convertible from one type into the
other.

Authorization for the capital increase as contained in Article 8
of the by-laws, will be represented by eighty million
(80,000,000) shares, of which (twenty-six million, six hundred
and sixty-six thousand and six hundred and sixty-seven
(26,666,667) will be common stock and fifty- three million,
three hundred and thirty-three thousand and three hundred and
thirty-three (53,333,333) preferred stock.

If the proposal is approved, immediately after the Special
General Meeting, the company must publish a Notice to
Shareholders setting a period of not less than thirty (30) days
in which the latter may freely and at their exclusive discretion
adjust their holdings of each type of stock, in multiple lots of
ten thousand (10,000) shares through private trading or through
BOVESPA.

Furthermore, when there is a need to round up a lot to ten
thousand (10,000) shares, the shareholder Usinor will sell the
amount of shares required directly to any shareholders who have
showed showing interest in acquiring them, regardless of the
amount held before the reverse split, including those holding
less than ten thousand (10,000) shares in either type of stock
prior to reverse split, at a price corresponding to the average
of the seven (7) closing quotations immediately prior to the
date of the publication of the Official Public Announcement
Calling the Special General Meeting.

After the deadline set for adjusting positions, the remaining
fractions will be separated, rounded to whole numbers and sold
in auction to be held on the Sao Paulo Stock Exchange. If there
are no parties interested in buying them, the shares will be
acquired by the shareholders Usinor, Previ, Petros and Sistel,
and the corresponding amounts credited to the current accounts
of the holders of the fractional shares.

In the event of not being able to identify the account for
depositing the amount, it will remain at the disposition of the
shareholders in the Company.

At the same time as the operation in the Brazilian Market, the
American Depositary Receipts (ADRs) will start to be traded in
the proportion of one (1) share for each 2 (two) ADRs, for the
corresponding types of stock.

If this proposal is approved, articles 5 and 8 of by-laws will
be altered as follows:

"Article 5 - The capital stock is of nine hundred and one
million, nine hundred and twenty one thousand, eight hundred and
forty-nine Brazilian reais and eighty-seven cents
(R$901,921,849.87), divided into seventy-four million, five
hundred and forty-eight thousand and three hundred and seventy
seven (74,548,377) shares, the latter to be an integral part of
the number mentioned in the authorization set in Article 8 of
the by-laws below, of which twenty-four million, nine hundred
thousand and eight hundred and sixty-five (24,900,865) are to be
common stocks and forty-nine million, six hundred and forty-
seven thousand and five hundred and twelve (49,647,512)
preferred stocks, all nominative and not convertible from one
type of share into another."

"Article 8 - The Company is authorized to increase its capital
stock, without changing its bylaws, to eighty million
(80,000,000) shares, of which twenty-six million, six hundred
and sixty-six thousand and six hundred and sixty-seven
(26,666,667) are to be common stocks and fifty- three million,
three hundred and thirty-three thousand and three hundred and
thirty-three (53,333,333) preferred stocks, and the latter shall
not exceed two thirds (2/3) of the total shares issued, by
decision of the Board of Directors, and under the conditions set
by this Body, without maintaining the currently existing
proportion between common and preferred stocks. Issues of stock,
subscription of warrants or convertible debentures may be
approved by the Board of Directors without complying with the
preference rights as stipulated in Article 172 of Law no. 6404 /
76. Sole paragraph - The shares in which the capital stock is
divided, as stated in Article 5 of the by-laws, are to be part
of the limit set in the caption of this article."

II - CREATION OF STATUTORY RESERVE

ACESITA's management has analyzed alternatives enabling it to
implement a financial and investment policy that is consistent
with its shareholders' remuneration and appropriate to its cash
flow requirements.

The legal and statutory provisions now in force require the
Company to distribute any future corporate earnings in excess of
the obligatory minimum dividend and legal reserve and not
attributed to any other reserve.

The most appropriate alternative to enable the Company to
implement a policy for distribution of earnings that is both
flexible and coordinated with the need for investment funds,
rebuilding working capital or even repayment of the Company's
debts, is to constitute a statutory reserve fund, which,
although permitted under the terms of Article 194 of the Company
Law, is not stipulated in Acesita's by-laws.

In view of the above, the Board of Directors is proposing that
provision be made for the constitution of a statutory reserve
fund, as stipulated in Article 194 of Law no. 6404 / 76, by
adding Article 33 to the by-laws, with the following wording,
and the others being renumbered:

"Art. 33 - On a proposal from the Board of Directors, the
General Meeting may allocate up to seventy five percent (75%) of
net income for the financial year to constitute a reserve fund
to be used for investment or working capital, in compliance with
the following principles:

I - the constitution of the fund shall not prejudice the right
of shareholders to receive the obligatory dividend as stipulated
in these by-laws;

II - the balance of this fund, combined with the balance of the
other profit reserves, other than provisions for contingencies
and unrealized profits, may not exceed the company's capital
stock, under penalty of capitalization or distribution of the
amount in excess;

III - the purpose of the reserve fund will be to ensure
investments in permanent assets or increase in working capital,
including by repayment of the Company's debt, irrespective of
retained earnings associated with the capital budget, and its
balance may be used

(i) for the absorption of losses, whenever necessary;
(ii) for the distribution of dividends, at any time;
(iii) for redemptions, reimbursements or purchases of shares
authorized by law; and
(iv) for incorporation into capital stock, including through
bonuses in new shares."

III - RESTATEMENT OF THE BY-LAWS

ACESITA's by-laws were last restated at the Special General
Meeting of February 4, 1999. Since that date, the by-laws were
altered at the Special General Meetings of November 5, 1999;
November 28, 2000; April 26, 2002 and will be altered at the
Special General Meeting that the Board of Directors hereby
decided to summon, if the proposals mentioned in the above items
are approved. In order to reflect these alterations, the Board
of Directors proposes that the by-laws are restated.

Board members:

Mr. Joaquim Ferreira Amaro
Chairman

Mr. Albano Chagas Vieira
Vice-Chairman

Mr. Jean-Yves Gilet
Mr. Paul Matthys
Mr. Antonio Alberto Gouvea Vieira
Mr. Ciro Ferreira Gomes
Mr. Cezar Manoel de Medeiros
Mr. Eustaquio Cota Magalhaes
Ms. Lucia Maria Coelho Weaver
Mr. Claudio Salgueiro Garcia Munhoz.

CONTACT: Acesita S.A.
         Avenida Joao Pinheiro
         580 Centro Belo Horizonte
         Minas Gerais 30130
         Brazil
         Phone: 55-31-3235-4200
         
         Web Site: http://www.acesita.com.br/


BANCO CITIBANK: LTFC Global Scale Rating Climbs to BB- From B+
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
currency global scale rating on Banco Citibank S.A. to 'BB-'
from 'B+'. The outlook is stable.

The move follows action taken on the Federative Republic of
Brazil's (foreign currency BB-/Stable/B; local currency
BB/Stable/B) foreign currency rating, since the foreign currency
rating on the bank is constrained by the sovereign rating.

ANALYSTS:  Milena Zaniboni, Sao Paulo (55) 11-5501-8945
           Daniel Araujo, Sao Paulo (55) 11-5501-8939
           Tamara Berenholc, Sao Paulo (55) 11-5501-8950
           Claudio Gallina, Sao Paulo (55) 11-5501-8938  


BANCO DO BRASIL: S&P Ups LTFC Global Scale Rating
-------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
currency global scale rating on Banco do Brasil S.A. to 'BB-'
from 'B+'. The outlook is stable.

The move follows action taken on the Federative Republic of
Brazil's (foreign currency BB-/Stable/B; local currency
BB/Stable/B) foreign currency rating, since the foreign currency
rating on the bank is constrained by the sovereign rating.

ANALYSTS:  Milena Zaniboni, Sao Paulo (55) 11-5501-8945
           Daniel Araujo, Sao Paulo (55) 11-5501-8939
           Tamara Berenholc, Sao Paulo (55) 11-5501-8950
           Claudio Gallina, Sao Paulo (55) 11-5501-8938  


BANCO ITAU: Sovereign Upgrade Pushes LTFC Ratings Higher
--------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
currency global scale rating on Banco Itau S.A. to 'BB-' from
'B+'. The outlook is stable.

The move follows action taken on the Federative Republic of
Brazil's (foreign currency BB-/Stable/B; local currency
BB/Stable/B) foreign currency rating, since the foreign currency
rating on the bank is constrained by the sovereign rating.

ANALYSTS:  Milena Zaniboni, Sao Paulo (55) 11-5501-8945
           Daniel Araujo, Sao Paulo (55) 11-5501-8939
           Tamara Berenholc, Sao Paulo (55) 11-5501-8950
           Claudio Gallina, Sao Paulo (55) 11-5501-8938  


BANCO SANTANDER BRASIL: LTFC Global Scale Rating Ascends to BB-
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
currency global scale rating on Banco Santander Brasil S.A. to
'BB-' from 'B+'. The outlook is stable.

The move follows action taken on the Federative Republic of
Brazil's (foreign currency BB-/Stable/B; local currency
BB/Stable/B) foreign currency rating, since the foreign currency
rating on the bank is constrained by the sovereign rating.

ANALYSTS:  Milena Zaniboni, Sao Paulo (55) 11-5501-8945
           Daniel Araujo, Sao Paulo (55) 11-5501-8939
           Tamara Berenholc, Sao Paulo (55) 11-5501-8950
           Claudio Gallina, Sao Paulo (55) 11-5501-8938  


BANCO SANTANDER MERIDIONAL: S&P Ups LTFC Global Scale Rating
------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
currency global scale rating on Banco Santander Meridional S.A.
to 'BB-' from 'B+'. The outlook is stable.

The move follows action taken on the Federative Republic of
Brazil's (foreign currency BB-/Stable/B; local currency
BB/Stable/B) foreign currency rating, since the foreign currency
rating on the bank is constrained by the sovereign rating.

ANALYSTS:  Milena Zaniboni, Sao Paulo (55) 11-5501-8945
           Daniel Araujo, Sao Paulo (55) 11-5501-8939
           Tamara Berenholc, Sao Paulo (55) 11-5501-8950
           Claudio Gallina, Sao Paulo (55) 11-5501-8938  


BANCO VOTORANTIM: S&P Raises Rating Following Sovereign Upgrade
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
currency global scale rating on Banco Votorantim S.A. to 'BB-'
from 'B+'. The outlook is stable.

The move follows action taken on the Federative Republic of
Brazil's (foreign currency BB-/Stable/B; local currency
BB/Stable/B) foreign currency rating, since the foreign currency
rating on the bank is constrained by the sovereign rating.

ANALYSTS:  Milena Zaniboni, Sao Paulo (55) 11-5501-8945
           Daniel Araujo, Sao Paulo (55) 11-5501-8939
           Tamara Berenholc, Sao Paulo (55) 11-5501-8950
           Claudio Gallina, Sao Paulo (55) 11-5501-8938  


BANESPA: S&P Raises LTFC Rating Following Sovereign Upgrade
-----------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
currency global scale rating on Banco do Estado de Sao Paulo
S.A. to 'BB-' from 'B+'. The outlook is stable.

The move follows action taken on the Federative Republic of
Brazil's (foreign currency BB-/Stable/B; local currency
BB/Stable/B) foreign currency rating, since the foreign currency
rating on the bank is constrained by the sovereign rating.

ANALYSTS:  Milena Zaniboni, Sao Paulo (55) 11-5501-8945
           Daniel Araujo, Sao Paulo (55) 11-5501-8939
           Tamara Berenholc, Sao Paulo (55) 11-5501-8950
           Claudio Gallina, Sao Paulo (55) 11-5501-8938  


CEMIG: Appoints Setape to Conduct Asset Valuation
-------------------------------------------------
The Extraordinary General Meeting of Stockholders held on
September 16, 2004 approved the appointment of the company
Setape - Servicos Tecnicos de Avaliacoes do Patrimonio e
Engenharia Ltda. to provide the services of valuation and
physical-accounting reconciliation of the Company's assets, as
specified by Law 6414/76, as amended.

The Valuation Opinion to be produced will be used in the
transfer of the assets to the wholly-owned subsidiaries which
will be formed to put into effect the process of restructuring
of Cemig, as required by Law 10848 of March 15, 2004.

CONTACT: Companhia Energetica de Minas Gerais
         AV. Barbacenda 1200
         Bello Horizonte MG
         30161-970
         Brazil

         Web Site: http://cemig.infoinvest.com.br/?language=enu


HSBC BANK BRASIL: Sovereign Upgrade Pushes LTFC Ratings Higher
--------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
currency global scale rating on HSBC Bank Brasil S.A. to 'BB-'
from 'B+'. The outlook is stable.

The move follows action taken on the Federative Republic of
Brazil's (foreign currency BB-/Stable/B; local currency
BB/Stable/B) foreign currency rating, since the foreign currency
rating on the bank is constrained by the sovereign rating.

ANALYSTS:  Milena Zaniboni, Sao Paulo (55) 11-5501-8945
           Daniel Araujo, Sao Paulo (55) 11-5501-8939
           Tamara Berenholc, Sao Paulo (55) 11-5501-8950
           Claudio Gallina, Sao Paulo (55) 11-5501-8938  


UNIBANCO: LTFC Global Scale Rating Climbs to BB- From B+
--------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
currency global scale rating on Unibanco-Uniao de Bancos
Brasileiros, S.A. to 'BB-' from 'B+'. The outlook is stable.

The move follows action taken on the Federative Republic of
Brazil's (foreign currency BB-/Stable/B; local currency
BB/Stable/B) foreign currency rating, since the foreign currency
rating on the bank is constrained by the sovereign rating.

ANALYSTS:  Milena Zaniboni, Sao Paulo (55) 11-5501-8945
           Daniel Araujo, Sao Paulo (55) 11-5501-8939
           Tamara Berenholc, Sao Paulo (55) 11-5501-8950
           Claudio Gallina, Sao Paulo (55) 11-5501-8938  


* S&P Raises Brazil Rating To BB-; Outlook Stable
-------------------------------------------------
Standard & Poor's Ratings Services raised its long-term foreign
currency sovereign credit rating on the Federative Republic of
Brazil to 'BB-' from 'B+'. The upgrade reflects marked
improvement in Brazil's external liquidity position and improved
fiscal dynamics amid strong macroeconomic policy management.
Standard & Poor's also revised its outlook on the rating to
stable from positive. At the same time, Standard & Poor's
affirmed its 'BB' long-term local and 'B' short-term sovereign
credit ratings on the republic. The stable outlook on the local
currency ratings remains unchanged.

According to Standard & Poor's Ratings Services credit analyst
Lisa Schineller, strong balance-of-trade performance in 2004-
2005 underpins the decline in external financing needs (current
account, short-term debt, medium- to long-term amortizations) to
almost 100% of international reserves during these years. "This
is a marked improvement from almost 200% in 2002 and 145% in
2003," Ms. Schineller said. "Although aided by favorable
cyclical factors, the growth in exports also reflects structural
improvement. The growing export sector is broad-based, with a
key contribution from manufactured goods, and export markets
continue to diversify," she added.

Ms. Schineller explained that the impressive turnaround in trade
accounts is expected to support greater stability in the
Brazilian real. In addition, the decline in the share of dollar-
linked paper (13% of domestic debt as of August 2004, down from
22% at December 2003) better insulates Brazil's fiscal accounts
and its debt burden from exchange rate fluctuations. Assuming
unwavering commitment to the targeted primary surplus, the
general government fiscal deficit is projected at around 4% of
GDP during 2004-2005. Net general government debt is projected
to decline to 60% of GDP in 2004 and 58% in 2005. The stronger
macroeconomic environment has supported by a recovery in real
GDP this year. While being led by net exports, the recovery is
projected to translate into growth of over 4% in 2004 and over
3% in 2005, given some increase in investment, which remains,
however, at low levels. Expected passage of microeconomic reform
should support further investment and expansion over the medium
term.

"The stable outlook reflects the commitment of the government to
pursue prudent macroeconomic policy and push forward with much
needed reform against the risk surrounding Brazil's still-
vulnerable fiscal and external positions," noted Ms. Schineller.
"The timely implementation of reform is key to ensuring the
continuation of a consistent and robust growth path that keeps
the debt burden declining. Similarly, the government is expected
to maintain its commitment to a 3%-4% of GDP general government
primary surplus (without major changes in budgetary accounting)
to keep the debt trajectory on a downward slope," she concluded.

Standard and Poor's also raised its long-term foreign currency
credit ratings on two sovereign-supported institutions, Banco
Nacional de Desenvolvimento Economico e Social BNDES and Banco
do Nordeste do Brasil S.A. to 'BB-' from 'B+'; all things being
equal, the ratings on these banks move in tandem with those of
the sovereign.

ANALYSTS:  Lisa M Schineller, New York (1) 212-438-7352
           Helena Hessel, New York (1) 212-438-7349
           Regina Nunes, Sao Paulo (55) 11-5501-8937  



=============
G R E N A D A
=============

* Hurricane Ivan Prompts S&P Ratings Reduction
----------------------------------------------
Standard & Poor's Ratings Services lowered its long-term foreign
and local currency sovereign credit ratings on Grenada to 'B+'
from 'BB-'. Standard & Poor's also said that it affirmed its 'B'
short-term foreign and local currency sovereign credit ratings
on Grenada. At the same time, Standard & Poor's placed all its
ratings on Grenada on CreditWatch with negative implications.

According to Standard & Poor's Ratings Services credit analyst
Olga Kalinina, the downgrades reflect the serious challenge now
facing the government of Grenada in implementing its planned
fiscal consolidation in light of the tragic events caused by
Hurricane Ivan, which hit the island on Sept. 7, 2004.
"Grenada's economic growth will also be hindered by the
extensive damage the hurricane inflicted on the twin pillars of
the Grenadian economy: the tourism and nutmeg industries," said
Mrs. Kalinina.

"Combined, these two factors now jeopardize the government's
earlier plans to lower its high debt level. Net general
government debt, which stood at 77% of GDP at year-end 2003, is
now unlikely to be reduced as government intended, which makes
the country's fundamentals more comparable with its 'B' rated
peers (the 'B' median for this ratio is 62% in 2004)," she
added.

Mrs. Kalinina explained that the CreditWatch placement reflects
the increased challenges now facing the government in meeting
its financial obligations in light of dramatic cuts in tax and
export revenue resulting from the hurricane's catastrophic
damage and from the immense funds required for rebuilding the
infrastructure and reviving the economy. Debt service on the
government's external obligations for the year 2004 as a whole
is estimated at US$29 million, consisting of US$10 million in
amortization payments and US$19 million in interest payments,
compared with foreign reserves of US$95 million. However, the
adequacy of these foreign currency reserves will be stretched
because the government's spending priorities are likely to focus
on reestablishing the social safety net (housing and other
infrastructure rehabilitation, normalization of food supply,
electricity) and reviving the economy (replanting the
agricultural crops, repairing the airport). In addition, the
private sector is likely to increase its demand for foreign
currency.

"Grenada has been already receiving international support from
various agencies, and more financial and humanitarian assistance
is expected in the next weeks and months," Mrs. Kalinina noted.
"Standard & Poor's expects to resolve the CreditWatch listing in
the next few weeks as the government's strategy on how to
address the social, economic, and financial problems becomes
clearer. Specifically, the amount and timing of financial aid to
Grenada will be among important factors that will inform future
credit actions," she concluded.

ANALYSTS:  Olga Kalinina, CFA, New York (1) 212-438-7350
           Helena Hessel, New York (1) 212-438-7349  



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

GRUPO POSADAS: S&P Rates Notes BB-; Leverage Levels Questioned
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' rating to
Grupo Posadas S.A. de C.V.'s (Posadas) $150 million senior
unsecured notes due 2011. Standard & Poor's also affirmed its
'BB-/Stable/--' corporate credit rating on the company. The
issue proceeds will be used to repay existing indebtedness. The
notes will be guaranteed jointly and severally by the main
operating subsidiaries of Grupo Posadas, which altogether
generated 74% of the 2003 EBITDA and had 95% of the total debt.

"The rating on Posadas reflects its somewhat high financial
leverage, cyclicality of the hotel industry, and geographic
concentration within Mexico," said Standard & Poor's credit
analyst Fabiola Ortiz. These factors are offset by the company's
position as the largest hotel operator in Mexico, a branding
portfolio with well-recognized names, and the development of
competitive advantage through technology.

Posadas operates 83 hotels with a total of 15,799 rooms as of
June 2004. The company's operations are concentrated in Mexico
where it runs 65 hotels (80% of rooms that generate 85% of the
EBITDA). It also operates 11 hotels in Brazil, six in the U.S.,
and one in Argentina.

Margins are expected to improve in the medium term as a result
of the company's potential to operate hotels with minimum
capital investment and the efficiencies obtained by applying the
technology that has already helped the company reduce costs and
improve distribution.

ANALYSTS:  Fabiola Ortiz, Mexico City (52) 55-5081-4449
           Manuel Guerena, Mexico City (52) 55-5081-4411  



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

BWIA: Jacelon Tapped to Take Over As Chairman
---------------------------------------------
Mr. Lawrence Duprey has officially resigned from his post as
chairman of Trinidad national airline BWIA, says The Trinidad
Express. The government's choice to replace Duprey is PNM party
treasurer and attorney Anthony Jacelon, confirmed Trade Minister
Ken Valley. The board of BWIA is yet to make a final decision on
the matter but, with the Government having resumed majority
ownership, its nominee for the job is guaranteed to win out.

The State re-nationalized BWIA after it put more than 97% of the
required capital into the airline's recent US$40 million rights
issue. Since the government agreed to take up shares not
purchased by the private shareholders, the State increased its
shareholding in BWIA to more than 75%.

Valley also said that following a positive report submitted by a
Canadian consultant, BWIA would now be able to go out into the
market to raise US$20 million.

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



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

PARMALAT URUGUAY: To Have New Owner Soon
----------------------------------------
Collapsed Italian dairy giant Parmalat Finanziaria will be
announcing the new owner of its Uruguayan subsidiary within the
next two weeks, reports El Pais.

Dairy giants from Argentina, Mexico, US, France and Italy have
indicated their interest in acquiring the subsidiary, which is
the second-largest dairy firm in the South American country.

In 2003, Parmalat Uruguay turned over US$45 million, 55% of
which was generated by exports. In December, Parmalat Uruguay
registered US$28 million in liabilities with banks. But the
figure has grown to US$30 million after the company stopped
paying its interests since December.



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

HARVEST NATURAL: Cash Position Improves; Moody's Ups Ratings
------------------------------------------------------------
Moody's Investors Service upgraded its ratings on Harvest
Natural Resources, Inc.:

- 9.375% senior unsecured notes due 2007 upgraded to B3 from
Caa2;

- senior implied rating upgraded to B3 from Caa1; and

- senior unsecured issuer rating upgraded to Caa1 from Caa2.

The outlook is stable.

The upgrade follows Moody's upgrade of both Venezuela and state
oil company Petroleos de Venezuela S.A., both of which were
downgraded last year pending a resolution to the political
instability in the country, which, however, appears to have
occurred with the recall referendum completed in August.

While Moody's felt that fundamentally Harvest's operations and
liquidity were in line with higher ratings at the time, the
company's dependency on sales to PDVSA for all of its operating
cash flows and with all of its reserves and production located
in Venezuela resulted in ratings more in line with Moody's
ratings for both PDVSA and Venezuela during this period of
uncertainty.

According to Moody's, the upgrade and removal of the notching of
the notes rating reflects the company's cash balances, which at
almost US$160 million, is approximately twice the amount of the
notes and currently leaving the company with zero net debt as
well as management's announcement that it will use the cash to
redeem the remaining US$85 million of 9.375% senior notes on
11/1/04.

Though the notes are not guaranteed by Harvest's subsidiaries,
under the indenture, Harvest must either reinvest the proceeds
from the sale of its Geoilbent interest (Harvest received
approximately US$75 million) in similar type assets or offer to
redeem a like amount of notes at par within a year.

As a result, Harvest announced it will irrevocably deposit the
full redemption amount with the trustee this month to call the
notes and gives Moody's cause to remove the notching.

Headquartered in Houston, Texas, Harvest Natural Resources, Inc.
is an independent energy company engaged in the exploration,
development and production of oil and gas in Venezuela.



                            ***********


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
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Copyright 2004.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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