/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/040924.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, September 24, 2004, Vol. 5, Issue 190 Headlines A R G E N T I N A AMPRI S.A.: Trustee to Close Claims Check A & B CONSTRUCCIONES S.A.: Validation Deadline Nears BANCO RIO: Moody's Establishes New Ratings BOHAPUI S.A.: Court OKs Creditor's Bankruptcy Call CRESER CREDITO: To Hold Informative Assembly Today DISTRICEL S.R.L.: Court Authorizes Reorganization EXPOSITORA: Individual Reports Due Today FRIGORIFICO AVICOLA: Court Appoints Trustee for Reorganization FRIGORIFICO FERNAROLO: Verification of Claims Ends HOSANTEL: Validation of Claims Nears End MEDIA PERSONALIZADA: Court OKs Creditor's Bankruptcy Motion METALURGICA MKM: Proceeds with Reorganization SANARFARM S.A.: Bankruptcy Process Begins By Court Order TGN: Local S&P Reaffirms `raD' Rating on Bonds TRANSPORTES El ALBA: Trustee Readies Individual Reports B E R M U D A FOSTER WHEELER: S&P Lowers Corporate Credit Rating to 'SD' B R A Z I L SINGER: Extends Tender Offer for Brazil Secured Notes C H I L E MADECO: Local Fitch Ups Ratings On Improved Financial Health D O M I N I C A * DOMINICA: Fiscal Programs on Track, Says IMF J A M A I C A C&WJ: Appoints Jacqueline Holding as New President M E X I C O DENNY'S: Subsidiaries Close New Credit Facilities EMPRESAS ICA: Monex Increases 2004 Target Price GRUPO POSADAS: Fitch Rates Proposed $150M Issuance 'BB-' TV AZTECA: To Prepay $300M Notes V E N E Z U E L A CERRO NEGRO: Debt Rating Raised to `BB' by Fitch HAMACA: Fitch Ups Rating on $1.1B of Loans to `BB' From `B+' PDVSA FINANCE: Upgrades Rating To 'BB' From 'BB-' PETROZUATA: Fitch Raises Debt Rating to `BB' From `B+' SINCOR: Fitch Ups Debt Rating Following Sovereign Upgrade * Bolivarian Republic of Venezuela Announces Invitation * Venezuela's Global Bonds Rated 'B+'; Stable Outlook -- Fitch * S&P Assigns 'B' to Venezuela's Planned $1.5B Bond Due 2014 - - - - - - - - ================= A R G E N T I N A ================= AMPRI S.A.: Trustee to Close Claims Check ----------------------------------------- The verification of creditor's claims for the Ampri S.A. bankruptcy is set to end on Monday, September 27, 2004. Court appointed trustee Hugo Alberto Trejo will verify all claims submitted within the period for inclusion among the individual reports due for court submission on November 9, 2004. Court no. 17 of Buenos Aires' civil and commercial tribunal, assisted by clerk no. 17, has jurisdiction over this case. CONTACT: Ampri S.A. Avda Medrano 184 Buenos Aires Mr. Hugo Alberto Trejo, Trustee Avda Cordoba 744 Buenos Aires A & B CONSTRUCCIONES S.A.: Validation Deadline Nears ---------------------------------------------------- Creditors of bankrupt company A & B Construcciones S.A. are required to submit proof of their claims before the verification ends on Monday, September 27, 2004. All submissions must be directed to court-appointed trustee Aldo Mackman before the deadline. Court no. 19 of Buenos Aires' civil and commercial tribunal handles this case, which will conclude with the liquidation of the Company's assets to repay its creditors. CONTACT: A & B Construcciones S.A. San Martin 977 Buenos Aires Mr. Aldo Mackman, Trustee Alsina 1441 Buenos Aires BANCO RIO: Moody's Establishes New Ratings ------------------------------------------ Moody's assigned first time National and Global Scale Ratings of Aaa.ar and Ba2, respectively, to the local currency deposits of Argentine bank Banco Rio de la Plata S.A. The ratings reflect the importance of Banco Rio's deposit franchise within the Argentine financial system as well as the support of its Spanish parent, Santander Central Hispano S.A. At the same time, Moody's also assigned a first time National Scale Rating (NSR) of B1.ar to Banco Rio's foreign currency deposits. The B1.ar foreign currency NSR is much lower than the local currency NSR as it reflects foreign currency transferability and convertibility risk, which is perceived to be high in the case of Argentina. Moody's NSRs are assigned based on a corresponding global rating for either local or foreign currency-denominated instruments. Banco Rio's foreign currency deposits are rated Caa2 on a global basis. Banco Rio US$4.7 billion in assets and US$2.3 billion in deposits as of June 30, 2004. CONTACT: BANCO RIO DE LA PLATA S.A. Bartolome Mitre 480 1036 Buenos Aires, Argentina Phone: +54-14-341-1081-1580 Fax: +54-14-341-1074-1084 Home Page: http://www.bancorio.com.ar Contacts: Ana Patricia B. S. de Sautuola y O'Shea, Chairman Jose L. E. Cristofani, Executive Vice Chairman and CEO Pablo Caride, Corporate Finance BOHAPUI S.A.: Court OKs Creditor's Bankruptcy Call -------------------------------------------------- Bohapui S.A. entered bankruptcy after Judge Fernandez, working for court no. 19 of Buenos Aires' civil and commercial tribunal, approved a bankruptcy motion filed by Mr. Alberto Mantel, reports La Nacion. The Company's failure to pay US$4,000 in debt prompted the creditor to file the petition. Working with Dr. Mazzoni, the city's clerk no. 37, the court assigned Ms. Raquel Steinhaus as trustee for the bankruptcy process. The trustee's duties include the authentication of the Company's debts and the preparation of the individual and general reports. Creditors are required to present their proofs of claims to the trustee before December 21, 2004. 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. CONTACT: Bohapui S.A. Posadas 1564 Buenos Aires Ms. Raquel Steinhaus, Trustee Paraguay 577 Buenos Aires CRESER CREDITO: To Hold Informative Assembly Today -------------------------------------------------- Creser Credito y Servicio S.A. is scheduled to conduct an informative assembly with its creditors today. The assembly is the final stage of the Company's bankruptcy proceedings. Ms. Cecilia Beatriz Montelvetti oversees the bankruptcy as the court-appointed trustee. Court no. 22 of Buenos Aires' civil and commercial tribunal handles the Company's case, said the Troubled Company Reporter - Latin America in an earlier report. The city's clerk no. 43 assists the court on this case. CONTACT: Ms. Ceicila Beatriz Montelvetti, Trustee General Urquiza 2134 Buenos Aires DISTRICEL S.R.L.: Court Authorizes Reorganization ------------------------------------------------- Court no. 13 of Lomas de Zamora's civil and commercial tribunal issued a resolution opening the reorganization of local company Districel S.R.L., reports Infobae. This pronouncement authorizes the Company to begin drafting a settlement proposal with its creditors in order to avoid liquidation. The reorganization further allows the Company to retain control of its assets subject to certain conditions imposed by Argentine law and the oversight of the court appointed trustee. Mr. Horacio Jorge Czaban will serve as trustee during the course of the reorganization. He will be validating creditors' proofs of claims until October 18, 2004. The results of the verification will be presented in court as individual reports on November 26, 2004. The trustee is also required to give the court a general report of the case on December 29, 2004. The general report summarizes events relevant to the reorganization and provides an audit of the Company's accounting and business records. CONTACT: Mr. Horacio Jorge Czaban, Trustee Tucuman 1295 Banfield EXPOSITORA: Individual Reports Due Today ---------------------------------------- The civil and commercial tribunal of Buenos Aires expects to receive individual reports from the Expositora S.R.L. reorganization case today. Mr. Jose Luis Carriquiry, the court- appointed trustee, prepared these reports from all creditors' claims submitted during the verification period. The court will use the reports to finalize the list of creditors eligible to receive post-liquidation payments. CONTACT: Mr. Jose Luis Carriquiry, Trustee Loyola 660 Buenos Aires FRIGORIFICO AVICOLA: Court Appoints Trustee for Reorganization -------------------------------------------------------------- Frigorifico Avicola Basavilbaso S.A., a company operating in Buenos Aires, is ready to start its reorganization after court no. 21 of the city's civil and commercial tribunal appointed accounting firm "Estudio Ferrari Herreco S.C." to supervise the proceedings as trustee. Clerk no. 41 assists the court on this case. Infobae states that the trustee will verify creditors claims until December 27, 2004. Afterwards, the firm will present these claims as individual reports for final review by the court on March 7, 2005. The firm will also provide the court with a general report pertaining to the reorganization on April 18, 2005. The court has scheduled the informative assembly on September 27, 2005. CONTACT: "Estudio Ferrari Herreco S.C." - Trustee Esmeralda 684 Buenos Aires FRIGORIFICO FERNAROLO: Verification of Claims Ends -------------------------------------------------- Mr. Juan Carlos Vilanova, the trustee directing the ongoing reorganization of Frigorifico Fernarolo S.A., will close the verification of creditors' claims Monday, September 27, 2004. Creditors must submit all required documents to the trustee before the said deadline so they can be included on the list of creditors covered by the Company's settlement plan. CONTACTS: Frigorifico Fernarolo S.A. Tacuari 371 Buenos Aires Mr. Juan Carlos Vilanova, Trustee Hipolito Yrigoyen 1349 Buenos Aires HOSANTEL: Validation of Claims Nears End ---------------------------------------- Mr. Carlos Felix Pisa Barros Garcia, trustee for the Hosantel S.A. reorganization, will be validating creditors' proofs of claims until Monday, September 27, 2004. Creditors are required to submit all required documents before the verification closes in order to be included in the Company's settlement plan. The Company will present the completed settlement proposal to its creditors during the informative assembly scheduled on June 24 next year. Court no. 25 of Buenos Aires' civil and commercial tribunal handles this case with assistance from clerk no. 49 CONTACT: Mr. Carlos Felix Pisa Barros Garcia, Trustee Avda Corrientes 3150 Buenos Aires MEDIA PERSONALIZADA: Court OKs Creditor's Bankruptcy Motion ----------------------------------------------------------- Judge Carrega, serving for court no. 4 of Buenos Aires' civil and commercial tribunal declared local company Media Personalizada S.A. bankrupt, says La Nacion. The ruling comes in approval of the bankruptcy petition filed by the Company's creditor, Ms. Maria Escobar, for nonpayment of US$30,887.43 in debt. The Company's trustee, Ms. Maria Alba, will examine and authenticate creditors' claims until November 18, 2004. This is done to determine the nature and amount of the Company's debts. Creditors must have their claims authenticated by the trustee by the said date in order to qualify for the payments that will be made after the Company's assets are liquidated. Dr. Anta, clerk no. 8, assists the court on the case, which will conclude with the liquidation of the Company's assets. CONTACT: Media Personalizada S.A. Malabia 1930 Buenos Aires Ms. Maria Alba, Trustee Montevideo 536 Buenos Aires METALURGICA MKM: Proceeds with Reorganization --------------------------------------------- Judge Bargallo, serving for court no. 11 of Buenos Aires' civil and commercial tribunal, approved the "Concurso Preventivo" petition filed by Metalurgica MKM S.R.L., reports local news source La Nacion. The Company, which listed assets of US$337,720.53 and liabilities of US$465,298.60, will undergo a reorganization process under the direction of trustee Hector Grun. The Trustee will verify creditors' proofs of claim until November 11, 2004. Verifications are done to ascertain the nature and amount of the Company's debts. The receiver will also prepare the individual and general reports on the case. Dr. Macchi, clerk no. 21, assists the court on the case. CONTACT: Metalurgica MKM S.R.L. Bolivia 414 Buenos Aires Mr. Hector Grun, Trustee San Mart�n 551 Buenos Aires SANARFARM S.A.: Bankruptcy Process Begins By Court Order -------------------------------------------------------- Court no. 9 of Buenos Aires' civil and commercial tribunal declared local company Sanarfarm S.A. "Quiebra," reports Infobae. The declaration signals the Company to proceed with the bankruptcy process, which will close with the liquidation of its assets. The court, assisted by clerk no. 17, appointed accounting firm "Estudio Edgardo Brodersen y Asociados" as trustee who will authenticate proofs of claim "pro via incidental". Afterwards, the trustee will prepare the individual reports based on the results of the authentication and then submit these reports to court on November 10, 2004. CONTACT: Sanarfarm S.A. Avda Corrientes 4641 Buenos Aires TGN: Local S&P Reaffirms `raD' Rating on Bonds ---------------------------------------------- The Argentine arm of Standard and Poor's International Ratings, Ltd. reaffirmed the `raD' rating on bonds issued by Transportadora de Gas del Norte, the CNV says. The rating, taken based on the Company's financial health as of June 30, 2004, affects the following bonds: -- US$24 million worth of "Serie V, con vencimiento en junio de 2003, emitada bajo el programa Global de Ons simples (USD300 Mio) vencido en 03.99" coming due on June 1, 2004; -- US$60.5 million worth of "Serie VI emitada bajo el Prorama Global de Ons Simples por un monto de US$320 mm" coming due on September 1, 2008; -- US$20 million worth of "Serie VII, con vencimiento en marzo de 2003, emitada bajo el Programa Global de Ons simples (US$300 Mio)," which came due on March 3, 2003; -- US$20 million worth of "Serie I emitada bajo el Programa Global de Ons Simples por un monto de US$320 million" coming due on July 1, 2009; -- US$154.5 million worth of "Serie II emitada bajo el programa Global de Ons Simples por un monto de US$320 million" coming due on August 1, 2008; -- US$10.7 million worth of "Serie III emitada bajo el programa Global de Ons Simples por un monto de US$320 million" coming due on July 1, 2009; -- US$50 million worth of "Serie III, con vencimiento en octubre de 2004, emitada bajo el Programa Global de Obligaciones simples (USD 300 Mio) vencido en 03.99" coming due this October 1, 2004; -- US$9.3 million worth of "Serie IV emitada bajo el Programa Global de Ons Simples por un monto de US$320 mm" maturing on July 1, 2009; and -- US$46 million worth of "Serie IV, con vencimiento en junio de 2002, emitida bajo el Programa Global de ONs simples (USD 300 Mio) vencido en 03.99" that came due on June 3, 2002. CONTACT: TRANSPORTADORA DE GAS DEL NORTE (TGN) Don Bosco 3672, (C120ABF) Buenos Aires, Argentina. Phone: (+54 11) 4959-2000 Fax: (+54 11) 4959-2242 Home Page: www.tgn.com.ar/ TRANSPORTES El ALBA: Trustee Readies Individual Reports ------------------------------------------------------- Individual reports on the Transportes El Alba S.A.C.I. bankruptcy case are due for court submission today. The reports, prepared by trustee Silvia Beatriz Cusel, are based from the creditors' proof of claims forwarded during the verification period. Court no. 14 of Buenos Aires' civil and commercial tribunal handles this case with assistance from the city's clerk no. 27. CONTACT: Ms. Silvia Beatriz Cusel, Trustee Manuel Ricardo Trelles 2350 Buenos Aires ============= B E R M U D A ============= FOSTER WHEELER: S&P Lowers Corporate Credit Rating to 'SD' ---------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Foster Wheeler Ltd. to 'SD' from 'CCC-'. At the same time, Standard & Poor's lowered its senior unsecured and subordinated debt ratings on the Clinton, N.J. -based engineering and construction (E&C) company to 'D' from 'CC'. The senior secured bank loan ratings were affirmed but will be withdrawn shortly, once the company's new bank facility is closed. "The rating actions follow the company's announcement that it has completed its equity-for-debt exchange offer. Since Foster Wheeler was able to exchange several of its debt securities for other financial instruments that, in aggregate, appear to have a much lower value than par, we view the exchange as coercive and, thus, a default," said Standard & Poor's credit analyst Joel Levington. The corporate credit rating of 'SD' reflects the fact that Foster Wheeler's senior secured bank facility was not part of the exchange offer, and the company remains current on that obligation with respect to interest. "When that facility is replaced with another bank deal, we will withdraw the rating," Mr. Levington said. The exchange offer was necessitated by several years of poor operating performance--involving, among other things, bidding disciplines, change-order management, and risk and control policies--all of which led to significant negative cash generation and charges in excess of $1 billion. Foster Wheeler is a large global E&C firm, mainly serving the oil and gas, energy, chemicals, and general industrial markets. ANALYSTS: Joel Levington, New York (1) 212-438-7802 =========== B R A Z I L =========== SINGER: Extends Tender Offer for Brazil Secured Notes ----------------------------------------------------- Singer N.V. ("Singer" or the "Company") announced Wednesday that Brazil Financing Ltd. ("BFL"), its direct, wholly-owned subsidiary is extending its tender offer for the 10% Series A Secured Notes due 2005 and the Series B Secured Notes due 2007 issued by Brazil Financing (II) Ltd., an indirect, wholly-owned subsidiary of the Company. The expiration time for the offer has been extended from 5:00 p.m., London time, on September 22, 2004 to 5:00 p.m., London time, on September 28, 2004 (the "Offer Expiration Time"). The closing remains subject to the satisfaction of certain conditions including the consummation of the acquisition of BFL and certain other subsidiaries of Singer by KSIN Holdings, Ltd. ("KSIN"). Series A Notes and Series B Notes validly tendered and not validly withdrawn after 5:00 p.m., London time, on August 3, 2004 and at or prior to the Offer Expiration Time will receive the offer consideration of $1,000 per $1,000 principal amount, plus accrued and unpaid interest, and $230 per $1,000 of maximum principal amount, respectively, if the tendered Series A Notes and Series B Notes are accepted for purchase. As of 5:00 p.m., London time, on September 22, 2004, BFL received tenders from holders of approximately $20,531,149 aggregate principal amount of the Series A Notes, representing approximately 90% of the outstanding principal amount of the Series A Notes and from holders of approximately $27,525,747 aggregate maximum principal amount of the Series B Notes, representing approximately 90% of the outstanding maximum principal amount of the Series B Notes. The terms and conditions of the offer, including the conditions of BFL's obligation to accept the Series A Notes and the Series B Notes tendered and pay the purchase price and, if applicable, the consent payment for them are described in the Offer to Purchase and Consent Solicitation Statement dated July 13, 2004, copies of which may be obtained from D.F. King & Co., Inc., the information agent for the offer, at 1-800-769-7666 (US toll free) or, outside the United States, at (44 20) 7920 9700 (collect). This announcement is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of consent with respect to any securities. The offer is being made solely by the Offer to Purchase and Consent Solicitation Statement dated July 13, 2004. All amounts are in U.S. dollars. About Singer N.V. Singer N.V. was incorporated under the laws of the Netherlands Antilles on December 21, 1999. Effective September 2000, as a result of a successful Chapter 11 reorganization, Singer became the parent company of several Operating Companies formerly owned by The Singer Company N.V., as well as acquiring ownership of the SINGER(R) brand name, one of the most widely recognized and respected trademarks in the world. Through its Operating Companies, Singer is engaged in two principal businesses, Retail and Sewing. The SINGER(R) trademark ties the two businesses together and also stands on its own with licensing and wholesaling potential. CONTACT: John Cannon at (914) 220-5134 Web site: http://www.singer.com ========= C H I L E ========= MADECO: Local Fitch Ups Ratings On Improved Financial Health ------------------------------------------------------------ The Chilean arm of Fitch Ratings upgraded the ratings of the bonds locally issued by Chilean copper cable specialist Madeco SA to BBB- from BB+, reports Dow Jones Newswires. The upgrade reflects an improvement in Madeco's financial health. In the second quarter of this year, Madeco, a unit of Quinenco SA, completed its second straight profitable quarter after six years of losses. In the first half, net profit reached CLP4.73 billion ($1=CLP613.20), compared with a CLP5.11 billion loss in the same period in 2003. Fitch improved the ratings on Madeco's inflation-indexed, no. 222 A-series bonds maturing in April of 2011, which amount to some $47.15 million. It kept its "first-class level four, stable outlook" rating for Madeco shares, says Dow Jones. Madeco S.A. (NYSE ticker: MAD) is a leading Latin American manufacturer of finished and semi-finished non-ferrous products based on copper, copper alloys and aluminum. Madeco is also a leading manufacturer of flexible packaging products for use in the packaging of mass consumer products such as food, snacks and cosmetics. CONTACT: Ms. Marisol Fernandez Investor Relations Madeco S.A. Voice: (56 2) 520-1380 Fax: (56 2) 520-1545 E-mail: mfl@madeco.cl Web Site: www.madeco.cl =============== D O M I N I C A =============== * DOMINICA: Fiscal Programs on Track, Says IMF ---------------------------------------------- The following statement was issued in Dominica by an International Monetary Fund (IMF) mission staff on September 17, 2004: "An IMF staff team visited Roseau, Dominica, during September 14-17, 2004 to discuss with the authorities developments under their economic program and to lay the groundwork for a mission, planned for October, that will conduct the third review under the Poverty Reduction and Growth facility (PRGF) arrangement. This week's discussions focused on recent economic developments, fiscal policy, and the government's structural reform agenda. "The mission welcomed the continuing strong implementation of the government's IMF-supported program, which has already begun to yield favorable results in the form of stronger economic growth and lower inflation. Preliminary data indicate that the fiscal program remains on track, and progress is being made in the area of tax reform. "The mission looks forward to continued close dialogue with the authorities. The October mission will conduct discussions with a view to consideration by the IMF's Executive Board of the third review toward the end of the year. Completion of the review by the Board will make available the next disbursement to Dominica under the program of about SDR 0.6 million or US$0.9 million." 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 ============= J A M A I C A ============= C&WJ: Appoints Jacqueline Holding as New President -------------------------------------------------- Cable & Wireless, the leading provider of communications in the Caribbean, has appointed Jacqueline Holding as the new president of Cable & Wireless Jamaica. She will succeed Gary Barrow effective October 1, 2004. As the chief executive, Holding will lead continuing programs to introduce new leading-edge products and technologies and further improve overall customer service levels throughout the country. She will spearhead the company's mission of providing world- class telecommunications services and products to the people of Jamaica. Holding will also personally oversee the company's efforts to assist those affected by Hurricane Ivan and work with local authorities to ensure that Cable & Wireless is doing everything possible to help restore normalcy to the country. Holding, who joined Cable & Wireless in 1990, is a seasoned telecommunications executive with international and financial expertise and a proven management track record. Previously, she served as CEO of Cable & Wireless Seychelles. In this role, she was responsible for managing a newly competitive market and demonstrated an ability to maximize customer satisfaction by quickly gaining a deep understanding of the market. As a result of her proven ability she was named regional CEO of the entire Middle East and Islands region. As such, she oversaw Cable & Wireless investments in a region consisting of 16 subsidiary and associate businesses and led her team to consistently exceed financial and operational targets. Jacqueline has also held senior roles in the Cable & Wireless businesses in the Maldives, Japan and Russia, further demonstrating her ability to quickly adapt to new and diverse markets. "Jacqueline's knowledge of the industry, her leadership skills and operational capabilities will complement the talents of the Cable & Wireless team and its commitment to Jamaica and the Caribbean region," said Len de Barros, Chief Operations Officer, Cable & Wireless Caribbean. "In addition, Jacqueline's experience in partnering with customers will bring immense value as we continue to work to meet their changing needs in this growing market. Without a doubt, she is the right person to lead Cable & Wireless Jamaica at this time." "I am honored and excited to be joining the Cable &Wireless team in Jamaica," said Jacqueline Holding. "My primary goal is to reinforce Cable & Wireless' position as the telecommunications company of choice for all Jamaicans. So, I look forward to partnering with our customers and building upon our recent improvements to the infrastructure and service organization to make that a reality." About Cable & Wireless Cable & Wireless is one of the world's leading international communications companies. It provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and internet services. Cable & Wireless' principal operations are in the United Kingdom, continental Europe, Asia, the Caribbean, Panama and the Middle East. =========== M E X I C O =========== DENNY'S: Subsidiaries Close New Credit Facilities ------------------------------------------------- Denny's Corporation (OTCBB: DNYY) announced that on Tuesday, its operating subsidiaries, Denny's Inc. and Denny's Realty, Inc., entered into new senior secured credit facilities in an aggregate principal amount of $420 million. The new facilities consist of a $75 million, four-year revolving credit facility, a $225 million, five-year first lien term loan and a $120 million, six-year second lien term loan. Banc of America Securities LLC and UBS Securities LLC acted as joint lead arrangers for the new facilities. The new credit facilities have been or will be used to refinance the company's existing credit facility and a portion of its existing senior notes and will be available for working capital, capital expenditures and other general corporate purposes. The new credit facilities are guaranteed by Denny's Corporation and its other subsidiaries and are secured by substantially all of the assets of Denny's and its subsidiaries. Denny's also announced, with respect to its previously announced tender offers and consent solicitations for the 12 3/4% Senior Notes due 2007 issued by Denny's Corporation and its wholly- owned subsidiary Denny's Holdings, Inc., and the 11 1/4% Senior Notes due 2008 issued by Denny's Corporation, that it, in each case, received the requisite consents for the proposed amendments to the indentures governing such senior notes and has entered into supplemental indentures with the trustee pursuant thereto. Denny's also accepted on Tuesday for payment and paid for $75,125,000 (out of $111,669,000 outstanding) aggregate principal amount of the 12 3/4% Senior Notes tendered by holders (and for which consents were received) prior to 5:00 p.m. on the September 20, 2004 consent date, for total consideration of approximately $84,652,000 (including tender consideration of 106.375% and a consent fee of 0.25% of the principal amount, plus accured and unpaid interest to date). In accordance with the terms of the tender offer and consent solicitation for the 12 3/4% Senior Notes, the proposed amendments to the underlying indenture, which eliminate substantially all of the restrictive covenants and related events of default in the indenture and reduce from 30 days to 3 days the minimum notice period for the redemption of the notes, at the same time became operative and binding on the remaining holders of the 12 3/4% Senior Notes. As contemplated by the tender offer and consent solicitation for the 12 3/4% Senior Notes, Denny's Corporation and Denny's Holdings also issued a notice of redemption with respect to the remaining 12 3/4% Senior Notes as of a redemption date of October 5, 2004. In accordance with the indenture governing the 12 3/4% Senior Notes, the redemption price on that date will be 106.375% of the principal amount of such notes, plus accrued and unpaid interest to the redemption date. The previously announced expiration time for the tender offer for the 12 3/4% Senior Notes, 12:00 midnight on October 4, 2004, continues in effect. Under the terms of the tender offer, the tender consideration for tenders of notes received after 5:00 p.m. on September 20, 2004 will be 106.375% of the principal amount of such notes, plus accrued and unpaid interest to the date the notes are accepted for payment. The consent fee provided to holders who tendered their 12 3/4% Senior Notes (and delivered their consents) prior to 5:00 p.m., September 20, 2004, is no longer available. With respect to the tender offer and consent solicitation for the 11 1/4% Senior Notes, $285,169,908 (out of $343,919,624 outstanding) aggregate principal amount of such notes were tendered (and consents received) prior to 5:00 p.m. on the September 20, 2004 consent date, although no 11 1/4% Senior Notes have yet been accepted for payment. Although the supplemental indenture for the 11 1/4% Senior Notes has been executed by Denny's and the trustee, the proposed amendments to the indenture contained therein, which eliminate substantially all of the restrictive covenants and related events of default in the indenture and reduce from 30 days to 3 days the minimum notice period for the redemption of the 11 1/4% Senior Notes, will only become operative and binding on the holders of the 11 1/4% Senior Notes upon (1) completion of an additional financing as described in the Offer to Purchase and Consent Solicitation Statement for the 11 1/4% Senior Notes, and (2) Denny's acceptance of 11 1/4% Senior Notes tendered pursuant to the tender offer. Denny's does not expect to accept 11-1/4% Senior Notes tendered pursuant to the tender offer, if at all, until promptly following the expiration time for the tender offer, currently set as 12:00 midnight on October 4, 2004. Denny's is America's largest full-service family restaurant chain, consisting of 553 company-owned units and 1,059 franchised and licensed units, with operations in the United States, Canada, Costa Rica, Guam, Mexico, New Zealand and Puerto Rico. Web site: http://www.dennys.com EMPRESAS ICA: Monex Increases 2004 Target Price ----------------------------------------------- Expectations of an improved financial result for Mexico's Empresas ICA (BMV, NYSE: ICA) this year prompted local financial group Monex to increase its price target for the engineering and construction company. According to Business News Americas, Monex has increased its 2004 price target for ICA to MXN4.20 (US$0.37) on Mexico City's bourse (BMV) from its previous MXN3.44 forecast. Monex projects ICA net sales will increase 27% to MXN12.650 billion this year compared to last year's, while Ebitda will grow 629% to MXN313 million and the net loss will shrink 93% to MXN76 million. By comparison, Monex projected ICA would report MXN12.458 billion in net sales, MXN1.426 billion in Ebitda and a MXN76.2- million loss this year in its previous report, published August 13. Apart from these projections, ICA also continues to win projects and its subsidiaries have increased project backlogs. Monex maintained its "buy" recommendation for ICA. ICA was founded in Mexico in 1947. ICA has completed construction and engineering projects in 21 countries. ICA's principal business units include civil construction and industrial construction. Through its subsidiaries, ICA also develops housing, manages airports, and operates tunnels, highways, and municipal services under government concession contracts and/or partial sale of long-term contract rights. CONTACT: Empresas ICA Sociedad Controladora SA de CV Mineria No. 145, Edificio Central 11800 Mexico, D.F., Phone: (212) 688-6840 e-mail: inversionistas@ica.com.mx Web Site: http://www.ica.com.mx/ GRUPO POSADAS: Fitch Rates Proposed $150M Issuance 'BB-' -------------------------------------------------------- Fitch Ratings has assigned a rating of 'BB-' to Grupo Posadas, S.A. de C.V.'s (POSADAS.MX) senior unsecured debt, including the proposed offering of US$150 million unsecured notes due 2011. Offering proceeds are likely to be used to refinance existing indebtedness. The Rating Outlook is Stable. The ratings reflect Posadas' solid business position, strong brand name, and multiple hotel formats. The company's presence in all major urban and resort locations in Mexico, consistent product offerings, and quality brand image have resulted in occupancy levels above the industry average in Mexico. The company's use of multiple hotel formats allows it to target both domestic and international business travelers, as well as tourists. Posadas' operations are primarily located in Mexico, which limits diversification; approximately one-fifth of room capacity is located outside Mexico. In recent years, Posadas' business strategy has evolved toward managing and leasing, as opposed to owning new hotel properties. This strategy has allowed the company to lower capital investment and related borrowing while maintaining room growth; the average capital expenditure per additional room has lowered to US$11,600 at year-end 2003 from more than US$100,000 in 2000. The company's expansion plans over the next two years include opening 28 hotels, 23 in Mexico and five in Brazil, or approximately 4,260 rooms. These properties will be mostly under the managed-hotel format, which will lower Posadas' cash investment to approximately US$21 million versus US$346 million if it were to own the properties. Posadas has ably managed its cost structure and developed alternative revenue sources, despite the weak economic conditions that ensued following Sept. 11, 2001. Expense per available room lowered to US$10.50 in 2003 from US$13.40 in 2000, in addition, Posadas increased the diversification of its revenue base through the development of the Vacation Club concept, selling vacation ownership plans. This business now accounts for approximately 17% of revenues, compared with 8% in 2000. The company operates in a competitive and highly fragmented lodging industry in Mexico. Over the past few years, rates have been pressured due to growing room capacity in urban locations and sluggish demand due to a weak Mexican economy. Occupancy levels/rates in urban locations remain down 2% and 9% in constant pesos, respectively, versus 2001 levels/rates. The company is exposed to adverse economic and political events in Mexico, Argentina, and Brazil that could affect occupancy levels and rates. The company has relatively high debt leverage with a ratio of total debt to EBITDAR of 4.4 times (x) at Dec. 31, 2003, and adjusted interest coverage, as measured by the ratio of EBITDAR to financial expense plus rent expense, was 2.6x during 2003. Credit statistics are solid for the rating category. While profitability margins have been pressured due to increased competition, lower occupancy/rates, and less favorable room mix due to new openings, credit protection measures have been stable, benefiting from lower interest rates/expense and stable debt levels. Fitch expects gradual improvement in credit protection measures as EBITDA gradually recovers to 2000 levels and debt remains stable. Grupo Posadas is the largest hotel operator in Mexico with more than 30 years in business. The company operates 83 hotels and 15,799 rooms across Mexico (79% of total rooms), U.S. (7%), Brazil (13%), and Argentina (1%). Approximately 72% of rooms are in urban locations, with the remaining 28% in beach resorts. The company manages different hotel formats under a combination of owned, leased, and managed properties, including Fiesta Americana and Fiesta Inn in Mexico and Caesar Park and Caesar Business in Argentina and Brazil. TV AZTECA: To Prepay $300M Notes -------------------------------- TV Azteca, S.A. de C.V. (NYSE: TZA; BMV: TVAZTCA), one of the two largest producers of Spanish language television programming in the world, announced Wednesday that it will prepay its US$300 million 101/2% note due February 15, 2007, during the fourth quarter of 2004. The note is callable at 101.75 up to February 15, 2005. The resources for the note's prepayment will come from the execution of a committed secured credit line denominated in pesos from Banco Inbursa, S.A. for the equivalent of US$300 million at the current exchange rate, which represents extended maturity and an anticipated improvement in financial cost conditions for TV Azteca compared with the note. The new credit entails the amortization of the current peso equivalent of US$80 million, US$100 million and US$120 million in 2006, 2007 and 2008, respectively. The gradual maturity further enhances the company's steady debt reduction efforts, which progressively lowers financial cost and thus improves free cash generation. The peso denominated loan will eliminate the foreign exchange risk of the US$300 million debt, allowing for greater predictability of the company's bottom line results going forward. TV Azteca is one of the two largest producers of Spanish language television programming in the world, operating two national television networks in Mexico, Azteca 13 and Azteca 7, through more than 300 owned and operated stations across the country. TV Azteca affiliates include Azteca America Network, a broadcast television network focused on the rapidly growing US Hispanic market; and Todito.com, an Internet portal for North American Spanish speakers. CONTACT: Investor Relations Mr. Bruno Rangel Phone: 5255 1720 9167 E-mail: jrangelk@tvazteca.com.mx Mr. Omar Avila Phone: 5255 1720 0041 E-mail: oavila@tvazteca.com.mx Media Relations: Mr. Tristan Canales Phone: 5255 1720 5786 E-mail: tcanales@tvazteca.com.mx Mr. Daniel McCosh Phone: 5255 1720 0059 E-mail: dmccosh@tvazteca.com.mx ================= V E N E Z U E L A ================= CERRO NEGRO: Debt Rating Raised to `BB' by Fitch ------------------------------------------------ Fitch upgraded the senior secured debt rating of Venezuelan heavy oil project Cerro Negro Finance, Ltd. to 'BB' from 'B+' and removed the Rating Watch Positive status. The rating action applies to the following debt securities issued by Cerro Negro: --US$200 million 7.33% bonds due 2009; --US$350 million 7.90% bonds due 2020; and --US$50 million 8.03% bonds due 2028. The rating action follows a recent upgrade of both the Venezuelan sovereign and Petroleos de Venezuela S.A. (PDVSA). Venezuela's sovereign rating continues to constrain Cerro Negro's credit quality. The project has been operating and producing synthetic crude oil (SCO) for export since achieving its financial completion date. As of mid-year 2004, the project continues to operate in line with budget. Extra heavy oil production has averaged 121,000 barrels per day (bpd). Strong international oil prices have resulted in higher-than-budgeted cash flows. Cerro Negro is owned 41.67% by an ExxonMobil subsidiary, 41.67% by a PDVSA subsidiary, and 16.67% by a Veba Oel subsidiary HAMACA: Fitch Ups Rating on $1.1B of Loans to `BB' From `B+' ------------------------------------------------------------ Fitch upgraded the senior secured debt rating of Venezuelan heavy oil project Petrolera Hamaca, S.A. to 'BB' from 'B+' and removed the Rating Watch Positive status. The rating action applies to total senior project loans of US$1.1 billion, consisting of: --US$627.8 million senior agency loan due 2018; --US$470 million senior bank loan due 2015, borrowed on a several (not joint) basis 30% by Corpoguanipa, S.A., a subsidiary of PDVSA, and 70% by Hamaca Holdings L.L.C. The rating action follows a recent upgrade of both the Venezuelan sovereign and Petroleos de Venezuela S.A. (PDVSA). Venezuela's sovereign rating continues to constrain Hamaca's credit quality. Hamaca is still finalizing construction with the first oil of commercial SCO planned for mid-October, followed by final completion testing to be scheduled in the first half of 2005. Until financial completion is achieved (no later than October 2005), Hamaca debt-holders will benefit from a completion guarantee with recourse to the sponsors. As of mid-year 2004, the project continues to operate in line with budget. Extra heavy oil production has averaged approximately 108,000 barrels per day (bpd). Strong international oil prices have resulted in higher-than-budgeted cash flows. Hamaca is owned 40% by a ConocoPhillips subsidiary, 30% by a ChevronTexaco subsidiary, and 30% by a PDVSA subsidiary. PDVSA FINANCE: Upgrades Rating To 'BB' From 'BB-' ------------------------------------------------- In light of Fitch's recent upgrade of both Venezuela and Petroleos de Venezuela S.A. (PDVSA) to 'B+', Fitch has upgraded the PDVSA Finance Ltd (PDVSA Finance) oil export receivables securitization to 'BB' from 'BB-'. The sovereign upgrade reflects increasing political and economic stability, which positively affects both PDVSA and PDVSA Finance. The rating of the transaction remains tempered by linkage to the sovereign and the structural changes made during the recent tender of over 95% of the outstanding PDVSA Finance notes. Approximately US$2.5 billion of the outstanding $2.6 billion in structured notes was tendered this past July. In addition, at the same time, several amendments were made to the original PDVSA Finance structure. The most significant structural change was the removal of two of the largest customers, Citgo Petroleum Corporation (Citgo) and Hovensa LLC (Hovensa). The other amendments change the covenants and events of default to reflect the removal of collateral and provide PDVSA with additional flexibility regarding financial reporting. In July, Fitch reviewed these amendments and analyzed the potential effects they could have on the transaction. There were some concerns associated with the removal of the collateral; however, the overall reduction in debt alleviated these issues. Coverages are expected to remain in excess of 90 times (x) debt service throughout the life of the deal. With the exception of Conoco Phillips, Lyondell Citgo, and a few others, the remaining customers are now considered rather small, dispersed, and potentially volatile contributors to collections. It can no longer be said that PDVSA Finance, on behalf of investors, controls all of the key Venezuela oil exports. Strengths of the transaction that remain unchanged involve the commercial relationships between PDVSA and several of the remaining designated customers, the notice and acknowledgements, which obligate all remaining designated customers to make payments into the collection account, the company's dependency on the U.S. for a large part of its crude oil and refined product exports, and a variety of covenants and triggers, including a DSCR trigger of 4.0x and a three-month principal and interest reserve. As in all future flow export receivables securitizations, this transaction is exposed to product and payment diversion by the company or the sovereign. Fitch believes this risk increased when the Venezuelan government tightened its control over the oil company after the oil strikes in early 2003 and again with the removal of designated customers Citgo and Hovensa in July. With that said, the sovereign and corporate upgrades reflect an increase in stability in the country that has a direct positive effect on the PDVSA Finance structure. The weakened structure post-tender remains the constraining factor to the 'BB' rating. PETROZUATA: Fitch Raises Debt Rating to `BB' From `B+' ------------------------------------------------------ Fitch upgraded the senior secured debt rating of Venezuelan heavy oil project Petrozuata Finance Inc. (Petrozuata) to 'BB' from 'B+' and removed the Rating Watch Positive status. The rating action applies to the following debt securities issued by Petrozuata: --US$300 million 7.63% series A bonds due 2009; --US$625 million 8.22% series B bonds due 2017; and --US$75 million 8.37% series C bonds due 2022. The rating action follows a recent upgrade of both the Venezuelan sovereign and Petroleos de Venezuela S.A. (PDVSA). Venezuela's sovereign rating continues to constrain Petrozuata's credit quality. The project has been operating and producing synthetic crude oil (SCO) for export since achieving its financial completion date. As of mid-year 2004, the project continues to operate in line with budget. Extra heavy oil production has averaged approximately 124,000 barrels per day (bpd). Strong international oil prices have resulted in higher-than-budgeted cash flows. Petrozuata is owned 50.1% by a ConocoPhillips subsidiary and 49.9% by a PDVSA subsidiary. SINCOR: Fitch Ups Debt Rating Following Sovereign Upgrade --------------------------------------------------------- Following Fitch Ratings' recent upgrade of both the Venezuelan sovereign and Petroleos de Venezuela S.A. (PDVSA) to 'B+' from 'B-', Fitch has upgraded the senior secured debt rating of Venezuelan heavy oil Sincrudos de Oriente Sincor, C.A. (Sincor) to 'BB' from 'B+' and removed the Rating Watch Positive status. The rating action applies to the US$1.2 billion senior bank loans borrowed by the sponsors of Sincor Finance Inc. Venezuela's sovereign rating continues to constrain the credit quality of Sincor. The project has been operating and producing synthetic crude oil (SCO) for export since achieving its financial completion date. As of mid-year 2004, the project continues to operate in line with budget. Extra heavy oil production has averaged 201,000 barrels per day (bpd). Strong international oil prices have resulted in higher-than-budgeted cash flows. Sincor is owned 47% by a TOTAL subsidiary, 38% by a PDVSA subsidiary, and 15% by a Statoil subsidiary. * Bolivarian Republic of Venezuela Announces Invitation ------------------------------------------------------- The Bolivarian Republic of Venezuela ("Venezuela" or the "Republic") announced Wednesday an invitation (the "Invitation") to holders of selected Venezuelan Brady bonds to offer to exchange those bonds for U.S. dollar-denominated, SEC-registered Global Bonds due 2014 (the "Global Bonds") to be issued by the Republic. In addition, the transaction contemplates an offering of Global Bonds for cash (the "Cash Offering" and, together with the Invitation, the "Global Bond Offering"). Pursuant to the Invitation, holders can offer to exchange Front- Loaded Interest Reduction Bonds Due 2007, USD Series A and B; Front-Loaded Interest Reduction Bonds Due 2007, Pounds Sterling; Front-Loaded Interest Reduction Bonds Due 2007, Swiss Franc; and Front-Loaded Interest Reduction Bonds Due 2007, Deutsche Mark (collectively, the "FLIRBs"); as well as Debt Conversion Bonds Due 2007, USD Series DL; Debt Conversion Bonds Due 2008, USD Series IL; Debt Conversion Bonds Due 2007, Deutsche Mark; and Debt Conversion Bonds Due 2007, Pounds Sterling (collectively, the "DCBs" and, together with the FLIRBS, the "Old Bonds") for Global Bonds. The Global Bonds issued pursuant to the Cash Offering will be priced at a yield to maturity equal to (a) the yield to maturity of the United States Treasury 4.25% Bond due August 15, 2014 (the "UST Benchmark Rate") on the date the results of the Invitation are announced (expected to be September 29, 2004) plus (b) a spread selected by the Republic in its sole discretion and announced at approximately 4:00 p.m., New York City time, on the last trading day before the date of expiration of the Invitation. For purposes of the Invitation, the value of the Global Bonds to be exchanged will be determined through a modified Dutch auction, in which (a) each bondholder submitting an offer to exchange FLIRBs will submit a spread over the UST Benchmark Rate that such bondholder would be willing to accept as the clearing spread for Global Bonds issued in exchange for such bondholder's FLIRBs and (b) each bondholder submitting an offer to exchange DCBs will submit a spread over the UST Benchmark Rate that such bondholder would be willing to accept as the clearing spread for Global Bonds issued in exchange for such bondholder's DCBs. The Republic will select, in its sole discretion, (i) a clearing spread for the FLIRBs, and (ii) a clearing spread for the DCBs, each of which will be used to calculate the Global Bond Exchange Price and the Exchange Ratio. The Republic will also select the principal amount of FLIRBs and the principal amount of DCBs it will acquire in exchange for Global Bonds pursuant to the Invitation. The Republic may, in its sole discretion, select one or more series of Old Bonds in which exchange offers may be prorated and/or decline to accept any offers in respect of any series of Old Bonds for which exchange offers have been submitted. The Republic may also decline to issue any Global Bonds in the Cash Offering. The Invitation and withdrawal rights are scheduled to expire at 4:00 p.m., New York City time, on September 28, 2004, unless extended or earlier terminated. Results of the Global Bond Offering will be announced by press release to Bloomberg News and the Reuters News Service the following day, and settlement will occur seven business days thereafter. Copies of the Prospectus Supplement describing the Global Bond Offering may be obtained from Georgeson Shareholder, the Information Agent, by telephone at 212-440-9800 or through its website at http://www.georgesonshareholder.com/venezuela. Barclays Capital, Inc. and Merrill Lynch Pierce Fenner & Smith Incorporated are acting as joint Dealer Managers for the Invitation. * Venezuela's Global Bonds Rated 'B+'; Stable Outlook -- Fitch -------------------------------------------------------------- Fitch Ratings, the international rating agency, has assigned the upcoming dollar-denominated bond issue maturing in 2014 of the Bolivarian Republic of Venezuela an expected long-term foreign currency rating of 'B+'. The size of the issue may be up to US$1.5 billion. The Rating Outlook is Stable. Venezuela's creditworthiness has improved following the resolution of uncertainty related to the August presidential recall referendum and on higher international liquidity. International reserves now stand at US$21.3 billion, well in excess of next year's estimated $5.4 billion in interest and principal obligations on the central government's external debt. Longer term, credit risk remains quite high because of the volatility in government revenues, half of which are directly related to oil. The structural fiscal balance has clearly deteriorated this year: rapid increases in public revenues - most of them either directly or indirectly oil-related - have been matched by similar boosts in spending, preventing the government from erasing its deficit during this bonanza year. Last year's central government deficit was over 4% of GDP, and Fitch estimates that this year's figure will be between 3% and 6% of GDP. As oil prices decline in the future, it will likely be politically difficult to reduce government expenditures commensurately, so the nominal deficit will likely increase unless there is a large devaluation. Faced with rising deficits in the past, governments have chosen to close them through devaluations, which have the effect of increasing the local currency value of dollar oil revenues. Such moves raise the value of public debt relative to GDP and have political costs because they reduce purchasing power. But, Fitch believes that policymakers would again choose to devalue in the event of stress from lower oil prices or wide misalignment of the official and parallel exchange rates, although this might come after significant depletion in international reserves. Compared with other 'B' range sovereigns, Venezuela stands out for its very low net public external debt (7% of broad exports at year-end 2003) position and its strong external liquidity (liquid external assets cover 316% of the stock of short-term debt and next year's estimated debt service). Public debt, estimated at 41% of GDP, is also below average and contracted at relatively low interest rates, keeping current financing requirements lower than most peers. Strong international liquidity and financing requirements below many similarly rated sovereigns should allow the government to weather considerable revenue shocks over the next two years (as it did over the past two). However, in the event of a sustained decline in oil prices or a disorderly easing of capital and import controls, international reserves would come under pressure, diminishing these key external strengths. Also, over the longer term, debt dynamics could deteriorate because the significant structural deficit and meager prospects for sustainable economic growth may prevent revenues from keeping pace with expenditures. CONTACT: Morgan C. Harting +1-212-908-0820, New York Therese Feng +1-212-908-0230, New York MEDIA RELATIONS: Kenneth Reed +1-212-908-0540, New York * S&P Assigns 'B' to Venezuela's Planned $1.5B Bond Due 2014 ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'B' long-term foreign currency rating to the Bolivarian Republic of Venezuela's planned $1.5 billion bond due in 2014. At the same time, Standard & Poor's affirmed its 'B' long- and short-term foreign and local currency sovereign credit ratings on the republic. The outlook is stable. According to Standard & Poor's Ratings Services credit analyst Richard Francis, the ratings reflect the balance between increased financial flexibility due to high oil revenue and the high fiscal deficits, political polarization, and diminished economic prospects that continue to constrain Venezuela's creditworthiness. "Following the victory of President Hugo Chavez in the Aug. 15, 2004, referendum on his presidency and the independent verification by international observers (including an audit of the results), political instability is likely to diminish- although the country remains highly polarized," Mr. Francis said. "Furthermore, Venezuela's external indicators have improved substantially over the past two years," he noted. Mr. Francis explained that international reserves increased to over US$21 billion as of Sept. 21, 2004, and are expected to stay at or above this level as long as oil prices remain high. This can be attributed to capital controls put in place in early 2003 and higher foreign exchange earnings from oil exports. As a result, the public sector is expected to move from a net debtor to a net creditor position by year-end 2004. Venezuela's external liquidity indicators have improved substantially over the past two years, and its net private sector debt-creditor position is also expected to show further improvement. Political polarization, weak institutions with limited checks and balances, a large fiscal deficit despite high oil prices, and structural economic deficiencies resulting from the continued high and growing dependence upon oil continue to constrain the ratings on Venezuela. "Further improvements in creditworthiness would largely depend upon enhanced fiscal prudence and improved prospects for the oil sector," noted Mr. Francis. The ratings could come under renewed pressure if oil revenue plummets or increased social unrest leads to further economic and/or political turmoil, resulting in falling external liquidity. Conversely, greater fiscal discipline, coupled with improved prospects for the oil sector, could lead to an improvement in creditworthiness," he concluded. *********** 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 Lucilo Junior M. Pinili, Editors. Copyright 2004. 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. 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