TCRLA_Public/041208.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                    L A T I N   A M E R I C A

          Wednesday, December 8, 2004, Vol. 5, Issue 243

                            Headlines


A N T I G U A   &   B A R B U D A

* ANTIGUA AND BARBUDA: Inks Debt Satisfaction Deal With Devcon


A R G E N T I N A

BANCO BISEL: Moody's Retains Default Rating on Bonds
BANCO MACRO: Moody's Maintains BB Ratings on Bonds
CORRIAL S.A.: Court Opens Liquidation Proceedings
CRM: Moody's Leaves Default Ratings on Bonds Unchanged
EDENOR: Argentina S&P Maintains Default Ratings on Bonds

FUNDEBA: Court Approves Creditor's Involuntary Bankruptcy Motion
MISSISSIPPI TOURS: Files Petition to Liquidate
SANCOR: Signs Distribution Deal With Fonterra
TARJETA NARANJA: $200M Bonds Maintain `D' Rating
TELECOM ARGENTINA/TELEFONICA: Strike Salary Accord With Workers

TRADE MARKETING: Court Favors Creditor's Bankruptcy Petition
* ARGENTINA: Struggles to Beat Debt Swap Deadline


B R A Z I L

AES CORP.: S&P Issues Update on Ratings
BANCO FIBRA: Ratings Under Review for Downgrade - Moody's
BANCO INDUSVAL: Ratings Face Possibility of a Downgrade
BANCO RURAL: Moody's Places Ratings on Review for Downgrade
COPEL: To Participate in 55,000MW Auction Following STF's Ruling

EMBRATEL: Officers Propose Capital Increase for Embrapar
NET SERVICOS: Anatel Authorizes Stake Sale


C H I L E

AES GENER: S&P Issues Report on Ratings


E L   S A L V A D O R

MILLICOM INTERNATIONAL: Managers Exercise Options


M E X I C O

CINTRA: To Name Economist as New Chairman
HYLSAMEX: UBS Cuts Recommendation to Reduce
INNOPHOS FOSFATADOS: S&P Ratings on Parent Remain On Watch Neg.

     -  -  -  -  -  -  -  -

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

* ANTIGUA AND BARBUDA: Inks Debt Satisfaction Deal With Devcon
--------------------------------------------------------------
Devcon International Corp. (Nasdaq: DEVC) announced Monday that
it has entered into a comprehensive debt satisfaction agreement
with the government of Antigua and Barbuda, which will settle
Devcon's remaining receivables for road and harbor work done in
prior years, as well as all outstanding tax assessments and
grant other relief from taxes and duties.

Devcon Chairman and CEO Donald L. Smith said, "As a result of
this satisfaction agreement and in exchange for the cancellation
of outstanding debt owed to the Company by the government, the
Company will receive $11.5 million in cash, a commitment for an
additional $937,000 cash over the next few months, a $7.5
million credit toward future withholding taxes, plus remittance
of all taxes and duties incurred through December 31, 2004."

Mr. Smith said, "We are pleased to successfully conclude these
important negotiations on terms that are both reasonable to the
island government and fair to Devcon. Upon receipt of the
payment, which we expect to receive today [Monday], the
Company's financial position will be significantly improved.
This will help support our construction division as well as the
current expansion of our security services and utilities
divisions."

At the time of the aforementioned satisfaction agreement, the
Company, after application of reserves and tax accruals, had a
net recorded receivable of $5.7 million although the principal
and accrued interest of the debt owed by the government to the
Company was approximately $29 million.  As a result, the Company
will recognize a net gain of an undetermined amount from this
transaction and is working to determine the amount of the gain
and the accounting treatment for the settlement.



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

BANCO BISEL: Moody's Retains Default Rating on Bonds
----------------------------------------------------
The National Securities Commission of Argentina reports that the
local branch of Moody's Ratings Agency maintains the 'D' rating
on various corporate bonds issued by local bank, Banco Bisel
S.A. The rating, which denotes payment default, refers to these
bonds:

- US$54 million worth of "Obligaciones Negociables Subordinadas"
classified under "Series and/or Class." The bonds matured on
July 20, 2000.

- US$100 million worth of "Programa Global de Obligaciones
Negociables" classified under "Program." These bonds also
matured on July 20, 2000.

- US$300 million worth of "Programa de Emision de Titulos de
Deuda a Mediano Plazo" classified under "Program." These bonds
matured on July 20, 2000.

- US$200 million worth of "Programa Global de Emision de
Obligaciones" classified under "Program." The maturity date of
the bonds was not indicated.

The Company's financial status as of September 30, 2004
determined the ratings given by Moody's.

CONTACT:  Banco Bisel S.A.
          Mitre 602 Rosario
          2000 Santa Fe
          Argentina
          Phone: 0341-4200300

          Web Site: http://www.bancobisel.com.ar/


BANCO MACRO: Moody's Maintains BB Ratings on Bonds
--------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. affirmed the
'BB' rating given to corporate bonds issued by Banco Macro S.A,
says Comision Nacional de Valores (CNV). The affected bonds are:

- US$5 million worth of bonds described as "Obligaciones
Negociables Subordinadas - Serie 4" maturing on December 31,
2005; and

- US$18 million worth of bonds described as "Obligaciones
Negociables Subordinadas - Serie V" maturing on December 29,
2006.

A `BB' rating indicates that the future of these bonds cannot be
well assured. Moody's took the action based on the bank's
financial status as of September 30, 2004.

CONTACT: Banco Macro S.A.
         Sarmiento 735 (1041)
         Buenos Aires
         Argentina
         Phone: (54-11) 4323-6300
         Fax  (54-11) 4325-6935
         Telex 18343 MacroAr -  4260 Macro Ar

         Web Site: http://www.grupomacro.com.ar/


CORRIAL S.A.: Court Opens Liquidation Proceedings
-------------------------------------------------
Judge Cirulli of Buenos Aires' civil and commercial Court No. 6
declared Corrial S.A. bankrupt, says La Nacion. The ruling comes
in approval of the bankruptcy petition filed by the Company's
creditor, Richter Export Gesellschaft MBH, for nonpayment of
US$1,383,399.56 in debt.

The Company's trustee, Mr. Norberto Bonessi, will examine and
authenticate creditors' claims until March 8, 2005. 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.

The city's Clerk No. 12, Dr. Davila, assists the court on the
case, which will conclude with the liquidation of the Company's
assets.

CONTACT:  Corrial S.A.
          Avenida Juan B. Justo 5096
          Buenos Aires


CRM: Moody's Leaves Default Ratings on Bonds Unchanged
------------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A., maintains a
'D' rating on a total of US$350 million worth of corporate bonds
issued by Compania de Radiocomunicaciones Moviles S.A.(CRM), the
CNV says on its Web site. The Company's financial health as of
September 30, 2004 determined the rating, which denotes a
payment default.

The CNV described the affected bonds as "Programa Global de Ons
simpleas, autorizado por AGE de fecha 26.6.97 y 23.9.97". These
bonds, which are classified under "Program", matured in March
2003.


EDENOR: Argentina S&P Maintains Default Ratings on Bonds
--------------------------------------------------------
Standard & Poor's International Ratings, Ltd. Sucursal Argentina
maintains the 'raD' rating on US$600 million worth of corporate
bonds issued by Edenor S.A. The rating was determined from the
Company's finances as of September 30, 2004.

Describing the bonds as "Programa Global de Obligaciones
Negociables", Argentine securities regulator Comision Nacional
de Valores (CNV) said that the issue would mature on November 5,
2006.

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

Edenor, a Buenos Aires electricity distributor, is a unit of
Electricite de France (EdF).

CONTACT:  EDENOR S.A.
          Azopardo Building
          Azopardo 1025 (1107) Capital Federal
          Phone: (54-11) 4346-5000
          Fax: (54-11) 4346-5300
          e-mail: to ofitel@edenor.com.ar

          Web Site: http://www.edenor.com.ar


FUNDEBA: Court Approves Creditor's Involuntary Bankruptcy Motion
----------------------------------------------------------------
Judge Garibotto, serving for Court No. 2 of Buenos Aires' civil
and commercial tribunal, declared Fundacion para el Desarrollo
de Buenos Aires (Fundeba) bankrupt, says La Nacion. The ruling
comes in approval of the bankruptcy petition filed by the
Company's creditor, Ms. Silvia Penino, for nonpayment of
US$19,903.15 in debt. The city's Clerk No. 3, Dr. Lage, assists
the Court on the case, which will conclude with the liquidation
of the Company's assets.

The Court's trustee, Ms. Beatriz Colucci, will examine and
authenticate creditors' claims until March 10, 2005. 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.

CONTACT: Fundacion para el Desarrollo de Buenos Aires (Fundeba)
         Esmeralda 351
         Buenos Aires


MISSISSIPPI TOURS: Files Petition to Liquidate
----------------------------------------------
Mississipi Tours S.A. filed a "Quiebra Presentada" motion,
reports La Nacion. The Company is seeking to reorganize its
finances following cessation of debt payments since April 11,
2003. The Company's case is pending before Court No. 24 of
Buenos Aires' civil and commercial tribunal, under Judge
Ballerini, who is assisted by Clerk No. 48, Dr.Pasaron.

CONTACT: Mississipi Tours S.A.
         Jovellanos 174
         Buenos Aires


SANCOR: Signs Distribution Deal With Fonterra
---------------------------------------------
Fonterra has signed an agreement with Argentina's biggest dairy
co-operative, SanCor Co-Operativas Unidas Limitada, to market
and distribute SanCor's dairy ingredients outside Argentina.

While details of the exclusive sales agreement are confidential
for commercial reasons, the deal will see Fonterra sell on
SanCor's behalf all its bulk commodity exports, predominantly
milkpowder and cheese, under SanCor brandnames.

Fonterra Chief Operating Officer Jay Waldvogel said the
agreement, which recognises Fonterra's global marketing
strengths, makes sense for both parties.

"Argentina's dairy industry is recovering well after a period of
slow growth and we welcome the opportunity to partner with one
of that country's leading dairy producers and exporters."

SanCor Chief Executive Officer Jorje Strika also welcomed the
agreement.

"We're looking forward to the benefits the partnership will
provide."


TARJETA NARANJA: $200M Bonds Maintain `D' Rating
------------------------------------------------
Moody's Latin America Calificadora de Riesgo S.A. maintains a
'D' rating on some US$200 million worth of bonds issued by
Tarjeta Naranja S.A., the CNV revealed on its web site.

The CNV described the affected bonds as "Programa de
Obligaciones Negociables de Corto y Mediano Plazo," without
indicating the maturity date of the issue. The rating was given
based on the Company's finances as of September 30, 2004.


TELECOM ARGENTINA/TELEFONICA: Strike Salary Accord With Workers
---------------------------------------------------------------
Argentina's two fixed-line telecommunications companies -
Telecom Argentina (TEO) and Telefonica de Argentina (TAR) - has
settled a conflict with striking workers after the companies
presented to the latter a new proposal on Saturday.

Citing Sergio Sosto, the spokesman for the Foetra telephone, Dow
Jones Newswires reports that the proposal was voted on by the
workers and was ratified Monday by the general assembly, paving
an end to the weeklong strike.

The union had asked for a 25% salary hike. The agreement locks
in an average 20% increase, as well as a new categorization
system for workers to address the union's concern that employees
doing the same tasks were paid differently. Sosto said other
benefits from the new deal included the incorporation of some
workers that were previously considered third parties and are
now entitled to higher salaries as well.

CONTACT:  TELECOM ARGENTINA S.A.
          Alicia Moreau de Justo 50, 10th Floor
          Capital Federal (1107) Republica Argentina
          Phone: +54 11 4968 4000
          Home Page: http://www.telecom.com.ar

          Contacts:
          Alberto J. Ricciardi, Chief Financial Officer
          Elvira Lazzati, Finance Director
          Pedro Insussarry, Investor Relations Manager
          Phone: (5411) 4968-3626/3627
          Fax: (5411) 4313-5842/3109
          E-mail: inversores@intersrv.telecom.com.ar

          TELEFONICA DE ARGENTINA
          Tucuman 1, 18th Floor, 1049
          Buenos Aires, Argentina
          Phone: (212) 688-6840
          Home Page: http://www.telefonica.com.ar


TRADE MARKETING: Court Favors Creditor's Bankruptcy Petition
------------------------------------------------------------
HSBC Bank Argentina Ltd. successfully sought for the bankruptcy
of Trade Marketing S.A. after Dr. Cirulli of Buenos Aires' civil
and commercial Court No. 6 declared the Company "Quiebra,"
reports La Nacion.

As such, the food and beverage Company will now start the
bankruptcy process with Mr. Juan Vilanova as trustee. Creditors
of the Company must submit proofs of their claims to the trustee
before March 11, 2005 for authentication. Failure to do so will
mean disqualification from the payments that will be made after
the Company's assets are liquidated.

The Creditor sought for the Company's bankruptcy after the
latter failed to pay debts amounting to US$3,599,474.32. Dr.
Davila, the city's Clerk No. 12, assists the court on the case
that will end with the liquidation of all of its assets.

CONTACT: Trade Marketing S.A.
         Parana 257
         Buenos Aires


* ARGENTINA: Struggles to Beat Debt Swap Deadline
-------------------------------------------------
The Argentine government is likely to delay the launching of its
offer to restructure US$103 billion in defaulted debt once
again, Dow Jones Newswires reports, citing people familiar with
negotiations.

The government originally planned to launch the debt swap on a
global basis on Nov. 29 but was forced to delay it until Jan. 17
after the Bank of New York, its former designated exchange
agent, cancelled a contract with the government.

Two weeks have passed since the breakdown in the Bank of New
York contract but up to now, Argentina hasn't named a new
exchange agent yet.

And while initially the government said it was seeking an
alternative exchange agent, it is now understood that the Bank
of New York is again one of two leading candidates to resume the
role. The other is JP Morgan Chase (JPM), which lost out to the
Bank of New York in September, when it cited higher cost and
longer time estimates than its competitor.

If the contract isn't signed "in the next couple of days," it is
going to be hard to meet the Jan. 17 date, said one person
familiar with the discussions. "Not only are you dealing with
some very, very complex stuff...you have to ensure that you have
the manpower on hand to do the job during the holiday season."



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

AES CORP.: S&P Issues Update on Ratings
---------------------------------------
Rationale

The rating (B+/Positive/--) on AES reflects the risks of its
reliance on substantive distributions from jurisdictions where
considerable regulatory and operating uncertainties exist to
support its parent-level debt, some exposure to merchant power
markets, and a highly leveraged, though improving, balance
sheet. While the level of distributions seems to have
stabilized, some of those distributions are very speculative,
considering that projections for 2004 include fairly sizable
distributions from Venezuela ($60 million), Nigeria ($45
million), and Argentina ($35 million). Also, 2004 projections
include a one-time distribution from subsidiary AES Gener S.A.
(Gener; BB+/Stable/--) representing the release of trapped cash.
In 2003, distributions included similar one-time distributions
from AES Hawaii Inc. and AES China Generating Co. Ltd.
(B+/Stable/--). AES received $26 million in distributions from
Venezuela, $33 million from Nigeria and $21 million from
Argentina as of Sept. 30, 2004, and an additional dividend of
$51 million from Venezuela has been declared, and should be paid
fairly shortly as the Venezuelan government, which is currently
exercising currency controls, recently authorized its payment.
This bodes well for 2004, but does not alter Standard & Poor's
Ratings Services' view of the potential volatility of such
distributions going forward.

These risks are tempered by the diversification of AES's
portfolio, a stable base of cash flow coming from its
contractual generation businesses and its regulated utility,
Indianapolis Power & Light Co. (IPL; BB+/Positive/--), and a
history of strong operations at its generation and distribution
businesses. Standard & Poor's expects U.S.-based contract
generation combined with IPL to generate about $400 million in
distributions annually over the medium term.

AES's management team has demonstrated a commitment to restoring
the Company's credit quality, and moved it away from a strategy
of aggressive expansion toward a focus on its core competency of
operations. AES will need to invest in new businesses to
maintain and grow its dividend stream, and the positive outlook
is predicated on such investments being credit neutral or
enhancing. Management has voiced a desire to be more disciplined
in its investment decisions than it has been historically, and
any deviation from such discipline could have a negative effect
on the ratings or outlook.

AES continues to move forward on its debt-reduction program,
having lowered its outstanding recourse debt from $5,939 million
to $5,470 million from Dec. 31, 2003, to Sept. 30, 2004. This is
down from a peak of $7,404 million as of March 31, 2002. In
November, AES announced that it had called for redemption an
additional $331.4 million in aggregate principal amount of debt
securities, which would bring its total 2004 debt reduction to
$800 million, and lower total debt to about $5,139 million.
AES's parent-level cash flow (distributions less operating
expenses, development expenses and cash taxes) to interest was
1.66x for the 12 months ended Sept. 30, 2004, down from over
1.8x in recent quarters, but slightly up from 1.62x as of Dec.
31, 2003. Lower total distributions have been more than offset
by lower parent-level interest expense resulting from debt
reduction. Standard & Poor's expects this ratio to be about 1.8x
in 2004, which is in line with the 'B+' rating. The ratio of
recourse debt to parent-level capitalization improved to 67% as
of Sept. 30, 2004, from 81% at year-end 2003 and 94% at year-end
2002. The ratio of parent-level cash flow to recourse debt stood
at 14.6% as of Sept. 30, 2004, about on par with the 14.5% on
Dec. 31, 2003. Standard & Poor's expects this to be about 16% in
2004. As a point of reference, when the rating on AES was 'BB',
parent-level cash flow to interest was consistently 2.2x to
2.4x, the ratio of parent-level debt to capitalization was about
50% to 55%, and parent-level cash flow to debt was 15% to 17%.

Liquidity

AES's parent-level liquidity stood at $863 million as of Sept.
30, 2004, down from $1,071 million as of Dec. 31, 2003. AES has
stated that it will target $400 million to $600 million of
available liquidity going forward, which is where AES will be if
it uses its liquidity to reduce parent-level debt by its target
amount over the fourth quarter. The larger contributors to the
decrease in liquidity are debt reduction of $468 million, a $300
million investment in Gener as part of its recapitalization,
offset by a $200 million increase in revolver commitments and
$121 million in returns of capital to the parent, mostly from
the recently completed Ebute financing. A fourth-quarter
announcement that AES had called for redemption $331.4 million
in face value of debt securities will move liquidity into the
targeted range and complete AES's planned debt reduction of $800
million for 2004. Parent free cash flow (distributions less all
parent expenses including interest, but prior to any investments
into subsidiaries) was $103 million for the quarter ended Sept.
30, 2004. This is down from $113 million in the second quarter,
and up from $64 million in the first quarter. The first quarter
tends to be a lower free cash flow quarter for AES. Standard &
Poor's expects parent-free cash flow of $300 million to $400
million in 2004, and AES is on pace to meet this goal given that
it generated $280 million through the third quarter.

Parent-level maturities are as follows--2004: $0; 2005: $142
million; 2006: $0; 2007: $661 million; and 2008: $615 million.
The 2007 maturities include the $450 million revolving credit
facility, which is currently undrawn, although as of Sept. 30,
2004, $125 million of its capacity was used by LOCs that support
parent commitments to operating businesses.

AES's liquidity facilities contain no rating triggers. AES's
bank loans do contain a number of financial covenants, including
collateral coverage ratio, parent operating cash flow to
corporate charges, and recourse debt to cash flow. As of Sept.
30, 2004, AES remains in compliance with all of its debt
covenants.

Recovery analysis

Standard & Poor's opinion on recovery prospects in bankruptcy is
reflected in the differentials between the debt ratings and the
corporate credit ratings. Standard & Poor's does not rate AES's
secured bank debt (revolving credit facility and term loan) and
makes no representation regarding its recovery prospects. The
'BB' rating (i.e., two notches above the corporate credit
rating) on AES's senior secured exchange notes reflects Standard
& Poor's strong expectation of 100% recovery to noteholders in a
bankruptcy scenario. Including undrawn bank debt, AES currently
has about $800 million of first lien debt outstanding (including
undrawn revolver amounts), with the ability to issue about $435
million more under its loan covenants. The collateral package
consists of 100% of AES's equity interests in its domestic
businesses and 65% of the equity in its foreign businesses.

Standard & Poor's 'B+' rating on AES's second priority notes
reflects Standard & Poor's view that substantial recovery (i.e.,
80-100%) would be likely in a bankruptcy scenario, but Standard
& Poor's is not confident enough in the prospects for full
recovery to warrant raising the rating above the corporate
credit rating. The 'B-' rating on all classes of unsecured debt
(i.e., two notches below the corporate credit rating), and the
'CCC+' rating on AES's trust-preferred securities reflect the
large amount of priority debt (first and second lien) ahead of
these holders, and thus the extremely dim prospects for recovery
in a bankruptcy scenario.

Outlook

AES's stated plans for continued debt reduction lead Standard &
Poor's to conclude that credit metrics are likely to improve,
thus the rating is more likely to improve than to remain the
same or deteriorate over a one-to-three-year time horizon. If
AES were to reduce its parent-level debt to about $4.5 billion
while maintaining its target liquidity of $400 million to $600
million mark given its current cash flow quality and quantity,
Standard & Poor's is likely to upgrade the Company to 'BB-'.

Primary Credit Analyst: Scott Taylor, New York (1) 212-438-2057;
scott_taylor@standardandpoors.com


BANCO FIBRA: Ratings Under Review for Downgrade - Moody's
---------------------------------------------------------
Moody's Investors Service placed the global local currency
deposit rating (B1) and the national scale deposit rating
(Baa2.br) of Brazilian bank Banco Fibra S.A. under review for
possible downgrade.

The review was prompted by Moody's assessment of a change in
behavior on the part of the Brazilian Central Bank as it imposed
a deposit freeze following its intervention of Banco Santos on
November 12, 2004.

As noted in Moody's published credit opinions, the global local
currency rating assigned to Banco Fibra already reflects a low
probability of support from the monetary authorities in the
event of financial stress, given the bank's limited importance
to the domestic deposit market.


BANCO INDUSVAL: Ratings Face Possibility of a Downgrade
-------------------------------------------------------
Moody's Investors Service placed the global local currency
deposit rating (B1) and the national scale deposit rating
(Baa3.br) of Brazilian bank Banco Indusval Multistock S.A. under
review for possible downgrade.

The review was prompted by Moody's assessment of a change in
behavior on the part of the Brazilian Central Bank as it imposed
a deposit freeze following its intervention of Banco Santos on
November 12, 2004.

As noted in Moody's published credit opinions, the global local
currency rating assigned to Banco Indusval already reflects a
low probability of support from the monetary authorities in the
event of financial stress, given the bank's limited importance
to the domestic deposit market.


BANCO RURAL: Moody's Places Ratings on Review for Downgrade
-----------------------------------------------------------
Moody's Investors Service placed the global local currency
deposit rating (Ba3) and the national scale deposit rating
(A3.br) of Brazilian bank Banco Rural, S.A. under review for
possible downgrade.

Additionally, Moody's also placed on review for possible
downgrade the bank financial strength rating (D) of Banco Rural,
an action that is related to the review of the global local
currency rating of this bank.

The review was prompted by Moody's assessment of a change in
behavior on the part of the Brazilian Central Bank as it imposed
a deposit freeze following its intervention of Banco Santos on
November 12, 2004.

As noted in Moody's published credit opinions, the global local
currency rating assigned to Banco Rural already reflects a low
probability of support from the monetary authorities in the
event of financial stress, given the bank's limited importance
to the domestic deposit market.


COPEL: To Participate in 55,000MW Auction Following STF's Ruling
----------------------------------------------------------------
Brazilian power producer Copel must participate in the
government's 55,000MW existing power auction starting December
7, reports Business News Americas.

The STF (Supremo Tribunal Federal) revoked a lower court
decision that allowed Copel to extend power supply contracts
between companies in the same group.

Previously, a federal court in Porto Alegre allowed Copel to
extend to 2015 power purchase contracts between its distribution
and generation units. The court agreed with Copel's claim that
the non-extension of contracts would force it to buy more
expensive power at the auction.

But power regulator Aneel filed an appeal with the STF, arguing
that Copel's absence from the auction could risk the
implementation of the power sector as a whole and could also
give Copel an unfair advantage since its installed capacity is
roughly 5,000MW.

STF president Nelson Jobim, who was on duty over the weekend,
disagreed and accepted Aneel's appeal.

CONTACT: Companhia Paranaense de Energia - Copel
         Investor Relations Department
         Mr. Ricardo Portugal
         (55-41) 331-4311

         Mr. Alves Solange Maueler Gomide
         (55-41) 331-4359

         E-Mail: ri@copel.com
         Web Site: www.copel.com


EMBRATEL: Officers Propose Capital Increase for Embrapar
--------------------------------------------------------
Embratel Participacoes S.A. ("Embrapar"), in compliance with the
provisions of Paragraph 4 of Article 157 of Law no. 6.404/76 and
to CVM Instruction no. 358/02, communicates to its shareholders
and to the public in general that, on Monday, December 6, 2004,
the Board of Officers of Embrapar has submitted for the approval
of the Board of Directors in a meeting to take place on December
15, 2004, a proposal to increase the capital of Embrapar.

The proposal contemplates an increase of Embrapar's capital
stock in an amount of up to approximately R$ 1,903,020,000.00
(one billion, nine hundred and three million, twenty thousand
reais), which corresponds, on the date hereof, to US$
700,000,000.00 (seven hundred millions dollars), to be paid in
cash, by issuing, for private subscription, new common and
preferred shares, in the same proportion as Embrapar's
outstanding common and preferred shares. The subscription price
will be determined by the Board of Directors, taking into
account market conditions and requirements of Brazilian law.

The purpose of the capital increase is to strengthen the
financial position of Embrapar and its subsidiaries in view of
their funding requirements over the medium term, which include
repaying maturing debt, prepaying some higher-cost debt, and
funding capital expenditures.

A stronger balance sheet will also position Embrapar and its
subsidiaries to compete more effectively and to meet challenges
and opportunities as they arise. Embrapar also anticipates
having the opportunity to acquire other Brazilian assets that
its controlling shareholder already owns or is in the process of
purchasing, although no such transaction has yet been proposed.

In order to allow the administration of Embrapar to fully
implement the capital increase, the Board of Officers has
requested that the Board of Directors approve the calling of an
Extraordinary Shareholders' Meeting with the purpose of deciding
on the increase of the limit of the authorized capital of
Embrapar.

The proposal of the Board of Officers contemplates that the
preemptive right to subscribe for new shares will be extended to
U.S. investors who hold preferred shares of Embrapar either
directly or through American Depositary Shares, a security
representing preferred shares of Embrapar, traded in the U.S.
market, in accordance with applicable U.S. laws. For this
purpose, a registration statement on Form F-3 will be filed with
the U.S. Securities and Exchange Commission ( "SEC").

The final terms of the capital increase, including its final
amount in reais, the issue price of the shares, and other
applicable terms will be determined by the Board of Directors in
a further meeting to be held, after the Extraordinary
Shareholders' Meeting deciding the increase in the authorized
capital of Embrapar takes place, and after the completion of any
necessary SEC review. The final terms will then be disclosed in
a notice to Embrapar shareholders.

This notice does not constitute an offer of sale of securities
in Brazil, in the United States or in any other jurisdiction.

CONTACT: Embratel Participacoes S.A.
         Rua Regenta Feijo
         166 sala 1687-B Centro
         Rio de Janeiro, 20060-060
         Brazil
         Phone: 5521-519-6474
         Web Site: http://www.embratel.net.br


NET SERVICOS: Anatel Authorizes Stake Sale
------------------------------------------
Brazil's telecommunications regulator Anatel has given pay
television Company Net Servicos de Comunicacao authority to
proceed with the sale of up to 49% stake to Mexican telecoms
giant Telefonos de Mexico (Telmex), reports Reuters.

Upon completion of the deal, Anatel will have to reconfirm its
approval and send the case to Cade, Brazil's top anti-trust
agency. That agency will then give the deal its final
authorization, says Reuters.

Analysts do not expect it to face any regulatory hurdles during
the approval process. Telmex has said it will end up taking
about 30% of Net once the deal is over.

CONTACTS: Net Servicos de Comunicacao S.A.
          Ms. Marcio Minoru or Mr. Rodrigo Alves
          Phone: 55-11-5186-2811
          e-mail: ri@netservicos.com.br



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

AES GENER: S&P Issues Report on Ratings
---------------------------------------
Rationale

The 'BB+' rating on AES Gener S.A., the second largest power
generator in Chile, reflects the exposure of the Company's cash
flow to the variability of spot prices in the Central
Interconnected System (SIC) which in turn is linked to weather
conditions and the availability of natural gas from Argentina.
This risk is offset by AES Gener's relatively large long-term
power sales contracts with solid offtakers, such as Chilectra
S.A. and Chilquinta Energ­a S.A. in the SIC that expire in 2010,
and with a copper mining Company (through its 99.99%-owned
Norgener) in Chile's Northern Interconnected System (SING) that
expires in 2015.

AES Gener's profit margin and cash flow generation are highly
dependent on the evolution of the node price and spot price in
the SIC because about 40% to 50% of consolidated revenues derive
from contracts at the node price and also because the Company's
costs are highly linked to the spot price. When spot prices are
low, AES Gener buys lower cost energy from the system to fulfill
its power sales contracts, and thus its margins improve. When
spot prices are higher, margins fall as AES Gener either buys
more expensive energy in the market or generates at its own
higher cost. In this context, adverse hydrology and the
shortages in natural gas supply from Argentina (caused by
restrictions imposed by the Argentine government on natural gas
exports to Chile) increase the cost of buying and producing
power given the need to burn higher-cost fuels and significantly
influence AES Gener's margins. Standard & Poor's, however,
expects AES Gener to weather the effects of the current natural
gas crisis in Argentina without a significant deterioration of
the Company's financial profile because it considers unlikely
that Argentine natural gas exports to Chile will be fully
interrupted. In addition, Standard & Poor's expects the node
price to remain above US$40 per megawatt-hour in the SIC in the
coming years, reflecting the lower availability of natural gas-
fired power generation capacity. Within this context, AES
Gener's high level of sales at the node price in the SIC should
allow it to offset most of the increased costs of generating
with higher-cost fuels. However, if Argentine natural gas
exports to Chile were highly restricted at the same time that
there is poor hydrology in the SIC, the Company's cost of sales
would increase significantly above the current projected levels
and would trigger a revision of the ratings.

AES Gener's financial profile significantly improved after the
completion of its debt-restructuring plan in June 2004, which
included a US$328 million debt reduction (26% of the total
consolidated debt held by the Company as of December 2003) and
significant extension of debt maturities to levels more in
accordance with the Company's cash generation capacity. As a
result, AES Gener's leverage decreased to a moderate 39.3% as of
Sept. 30 2004, if measured by total debt to total capital, and
funds from operations (FFO) interest coverage and FFO to total
average debt improved to 3.6x (excluding one time prepayment
cost of Termoandes' debt) and 24.8% for the 12 months ended on
Sept. 30 2004, compared with 3.1x and 15.7%, respectively, in
fiscal 2003. Going forward, although Standard & Poor's expects
coverage measures to remain volatile, current ratings reflect
the assumption that FFO interest coverage and FFO to total
average debt will remain above 3x and 15%, respectively, in the
2005-2007 period.

AES Gener is the second-largest generator in the Chilean
electricity market, accounting for about 21% of the country's
total generating capacity, with an installed capacity of 2,429
MW. AES Gener is 98.79% indirectly owned by U.S.-based AES Corp.
(B+/Positive/--).

The corporate credit rating on AES Gener is significantly higher
than that on AES Corp. In most circumstances, Standard & Poor's
will not rate the debt of a wholly owned subsidiary higher than
the debt of the parent. However, it makes exceptions on the
basis of the cumulative value provided by enhancements, such as
structural protections, covenants, and an independent
shareholder or director. The enhancements in place for AES
Gener, together with certain legal insulation provided by
Chilean bankruptcy law, provide Standard & Poor's with
sufficient comfort to allow for the current three-notch
separation.

Liquidity

AES Gener's liquidity is good and has significantly improved
after the implementation of the Company's debt restructuring
plan. This is evidenced by cash reserves of US$88.1 million and
US$125.0 million on an individual and consolidated basis,
respectively, compared with US$25.3 million and US$50.9 million
short-term debt maturities as of Sept. 30 2004. Going forward,
Standard & Poor's expects AES Gener to maintain a good liquidity
position assuming relatively low dividends, relatively moderate
capital expenditures, a normal hydrology and no significant
natural gas supply shortages in the SIC.

Outlook

The stable outlook incorporates Standard & Poor's expectation
that AES Gener's financial performance will gradually improve
mainly due to the projected debt reduction as debt becomes due.
Rating stability assumes sustained node prices and no
significant natural gas supply shortages in the SIC.

Primary Credit Analyst: Sergio Fuentes, Buenos Aires (54) 114-
891-2131; sergio_fuentes@standardandpoors.com

Secondary Credit Analyst(s): Marta Castelli, Buenos Aires (54)
114-891-2128; marta_castelli@standardandpoors.com



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

MILLICOM INTERNATIONAL: Managers Exercise Options
-------------------------------------------------
Millicom International Cellular S.A. (``Millicom'' or the
``Company'') announces that in connection with the offering of 8
million Ordinary Shares in the form of Ordinary Shares or
Swedish Depositary Receipts (``SDRs'') (the ``Share Offering''),
the option granted to the Managers at the Share Offering in
respect of 1 million Optional Shares has been exercised in full.
The aggregate Share Offering will now be 9 million Ordinary
Shares.

The Company also announces that in connection with the offering
of US$175 million 4.00 per cent. Convertible Bonds (the
``Bonds'') convertible into Ordinary Shares and/or SDRs (the
``Bond Offering''), the option granted to the Managers at the
Bond Offering in respect of US$25,000,000 principal amount of
Optional Bonds has been exercised in full. The aggregate
principal amount of the Bonds will now be US$200,000,000.

The Bonds, Ordinary Shares and SDRs, including Ordinary Shares
or SDRs issuable upon conversion of the Bonds, have not been and
will not be registered under the U.S. Securities Act of 1933 and
may not be offered or sold in the United States unless
registered under the U.S. Securities Act of 1933 or pursuant to
an exemption from registration.

Stabilisation/FSA

CONTACTS: Mr. Marc Beuls
          President and Chief Executive Officer
          Millicom International Cellular S.A.
          Luxembourg
          Phone: +352 27 759 327

          Mr. Andrew Best
          Investor Relations
          Phone: +44 (0)7798 576378



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

CINTRA: To Name Economist as New Chairman
-----------------------------------------
Mexican airline operator Cintra SA (CINTRA.MX) plans to present
at a Dec. 15 shareholder's meeting a proposal to appoint
economist Andres Conesa as chairman.

The plan is part of Cintra's preparation for the privatization
of the country's main airlines - Aeromexico and Mexicana.

The government plans to combine and sell the carriers next year,
while the airlines' regional units, AeroCaribe and Aerolitoral,
are due to be fused into a separate Company that would compete
with their former parents.

Cintra said Conesa played a key role in drawing up Company plans
to merge and sell the airlines.

Conesa, who has held a number of top-level posts at Mexico's
Finance Ministry, would replace Rogelio Gasca Neri, whom the
board has designated to become Aeromexico's chief executive.
Aeromexico's current chief executive, Fernando Flores, is due to
retire while Emilio Romano, chief executive of Mexicana, has
been tapped to run the combined AeroCaribe-Aerolitoral.

CONTACT: CINTRA S.A. de C.V.
         Av Xola 535 piso 16 col. del Valle M,xico DF
         Phone: (5)448 - 8000
         e-mail: infocintra@cintra.com.mx

         Web Site: http://www.cintra.com.mx


HYLSAMEX: UBS Cuts Recommendation to Reduce
-------------------------------------------
UBS Investment Research slashed its recommendation on Mexican
steelmaker Hylsamex (Hylsamex.MX) to reduce from neutral, citing
concerns about the Company's profitability outlook.

"We believe that steel prices are close to a peak, and risks are
to the downside," UBS state in a Monday research report.

"Companies should be faced with higher raw material costs in
2005 - the expected 30% increase in steel raw materials in 2005
are likely to incite further steel price increases in first half
2005."

But UBS also sees a slowdown in demand growth, with global
industrial production forecast to increase 4.9% in 2005, from
6.3% in 2004.

Furthermore, "China's large net move from importer to exporter
suggests that global inventories could grow quickly, pressuring
prices from the second quarter 2005," it said, adding that "the
possible rapid fall in prices in the second half 2005 could see
margins squeezed severely."

Hylsamex reported a third-quarter net income of MXN1.4 billion
(US$130 million), compared with a net loss of MXN285 million in
the same period a year earlier.

CONTACT:  Othon Diaz Del Guante
          (52-81) 8865-1240
          E-mail: odiaz@hylsamex.com.mx

          Ismael De La Garza
          (52-81) 8865-1224
          E-mail: idelagarza@hylsamex.com.mx


INNOPHOS FOSFATADOS: S&P Ratings on Parent Remain On Watch Neg.
---------------------------------------------------------------
Standard & Poor's Ratings Services said Monday that its ratings
on Cranbury, N.J.-based Innophos Inc. (B+/Watch Neg/--) remain
on CreditWatch with negative implications.

"Rhodia S.A. (B/Stable/B) is assuming direct responsibility,
subject to certain limitations, for resolving the claim from the
Mexican National Water Commission related to water usage at
Innophos' Coatzacoalcos plant," said Standard & Poor's credit
analyst Wesley E. Chinn. That plant was included in Rhodia's
August 2004 sale of its North American specialty phosphates
operation to Bain Capital Partners LLC, which formed the
business into a new Company, Innophos.

In November 2004 Innophos' Mexican subsidiary, Innophos
Fosfatados de Mexico S. de R.L. de C.V., received a notice of
claims from the national water commission for possible errors
related to payment for the extraction and use of water from
national waterways. The claims relate to water use at the
Company's Coatzacoalcos manufacturing plant from 1998 through
2002 and include governmental duties, taxes and other charges of
$36 million. There are also claims for interest, inflation
adjustments, and penalties under the Mexican federal tax code
for an additional $96 million.

Innophos believes it is indemnified against these claims under
the terms of the sale agreement to Rhodia, but the unexpected
and substantial amount of the charges results in uncertainty for
this Company's credit quality at a time when debt leverage
measures are subpar for the ratings. Standard & Poor's first
assigned ratings to this specialty chemical Company in July
2004. Moreover, while the charges are for water usage in past
years, this matter raises concerns as to whether current or
future earnings will be affected by additional water-related
costs in Mexico.

For the three months ended Sept. 30, 2004, sales were up 7% from
the comparable year-earlier period, helped by price increases
across most product lines. Volume growth was also reported,
mainly driven by exports of by-product fertilizer sales.
Operating income was $6.2 million, as compared to $8.8 million
for the three months ended Sept. 30, 2003. The decline primarily
reflected non-cash purchase accounting charges of $4.7 million
in 2004 for an inventory fair value adjustment. Liquidity is
reasonable, reflecting in part $28 million of availability under
a $50 million revolving credit facility.

Standard & Poor's will resolve the CreditWatch listing as more
information related to the resolution of the water claims is
available.



                            ***********


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

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

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