TCRLA_Public/050714.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

             Thursday, July 14, 2005, Vol. 6, Issue 138

                            Headlines

A R G E N T I N A

ANCLAMAT S.A.: Enters Bankruptcy on Court Orders
APSA: To Start Payment of 6th Installment of Interests July 19
BAICOR S.R.L.: General Report Submission Deadline Set
CERVECERIA Y MALTERIA: Fitch Upgrades, Assigns Ratings
FULL CLEANING: Liquidating Assets to Pay Debts

HB COMUNICACIONES: Court Designates Trustee for Liquidation
LAGORIO ARGENTINA: Verification Deadline Approaches
MOLINOS RIO: Fitch Raises LTFC, LTLC Ratings to `B'
MORRISON CEREALES: Court Selects Trustee
PAN AMERICAN ENERGY: Fitch Assigns `BB-' LTLC Rating

PETROBRAS ENERGIA: LTLC Rating Raised to `BB-'
READY S.R.L.: General Report to be Submitted Aug. 11
SERGIO RAMOS: Trustees to Submit General Report
TELEFONICA DE ARGENTINA: Fitch Ups LTFC, LTLC Ratings to `B'
TELEFONICA HOLDING: LTFC, LTLC Ratings Raised to `B-'

TOWER RECORDS: Begins Liquidation


B E R M U D A

LORAL SPACE: Reorganization Plan Secures 95% Creditor Backing


B R A Z I L

BERTIN LTDA: S&P Assigns 'B+' Corporate Credit Ratings
VARIG: 60-Day Period to Present Plan Kicks Off Tuesday
* BRAZIL: Fundamentals Solid Despite Adverse Politics - S&P


C H I L E

MANQUEHUE NET: GTD Seeks to Conclude Due Diligence by August


C O S T A   R I C A

ICE: ArtinSoft Seeks to Overturn Comptroller's Decision


J A M A I C A

DIGICEL LIMITED: Fitch Rates $250M Proposed Issuance 'B'


M E X I C O

AMERICAS MINING/SPCC/MINERA MEXICO: S&P Raises Ratings
GRUPO MEXICO: S&P Cuts Asarco's Ratings to 'CCC' From 'BB-'
GRUPO MEXICO: S&P Raises Ratings to 'BBB-'; Outlook Stable


P E R U

SPCC: Cash Position Falls In 2 Mos. Due to Dividend Payment


U R U G U A Y

BANCO COMERCIAL: Govt Hires Local, Int'l Firms to Advise on Case


V E N E Z U E L A

SIDOR: CVG Sheds Light on the Delay of Dividend Payments

     -  -  -  -  -  -  -  -

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

ANCLAMAT S.A.: Enters Bankruptcy on Court Orders
------------------------------------------------
Anclamat S.A. enters bankruptcy protection after Court No. 10 of
Buenos Aires' civil and commercial tribunal, with the assistance
of Clerk No. 20, ordered the Company's liquidation. The order
effectively transfers control of the Company's assets to a
court-appointed trustee who will supervise the liquidation
proceedings.

Infobae reports that the court selected Norberto Aurelio Alvarez
as trustee. Mr. Alvarez will be verifying creditors' proofs of
claim until the end of the verification phase on Oct. 17, 2005.

Argentine bankruptcy law requires the trustee to provide the
court with individual reports on the forwarded claims and a
general report containing an audit of the company's accounting
and business records. The individual reports will be submitted
on Nov. 28, 2005 followed by the general report, which is due on
Feb. 9, 2006.

CONTACT: Mr. Norberto Aurelio Alvarez, Trustee
         Rodriguez Pena 189
         Buenos Aires


APSA: To Start Payment of 6th Installment of Interests July 19
--------------------------------------------------------------
Alto Palermo S.A. - APSA will start on July 19 the payment of
the sixth installment of interests related to the Notes issued
on July 19, 2002.

Alto Palermo S.A. (APSA) Fixed Rate Convertible Notes in a
Principal Amount of US$50,000,000, due 2006

Payment Agent: Caja de Valores S.A.
               25 de mayo 362
               Buenos Aires, Argentina

Date of effective payment: July 19, 2005

Payment Hours: From 10:00 am to 3:00 pm.

Number of service to be paid: sixth installment of interests

Period comprised by the payment: January 17, 2005 / July 19,
                                 2005

Concept of payment: Interests (100%)

Payment Currency: The payment will be made in argentine pesos
                  using the exchange rate for the vendor
                  published by the Banco de la Nacion Argentina
                  on July 18, 2005.

Residual Nominal Principal: 47,281,230

Annual Nominal Interest: 10.00%

Interest being paid: 5.01369863%

Amount to be paid: US$2,370,538.38

Amortization coupon: Not applicable

The interests will be paid to the people at whose name the notes
were registered at least 3 business days prior to the payment
date in the registry held by the Register Agent.

CONTACT: Alto Palermo S.A. (APSA)
         2/F
         476 Hipolito Yrigoyen
         Buenos Aires
         Argentina
         Phone: +54 11 4344 4600
         Web site: http://www.altopalermo.com.ar


BAICOR S.R.L.: General Report Submission Deadline Set
-----------------------------------------------------
The submission of the general report on the Baicor S.R.L.
bankruptcy case will be on July 27, 2005.

Infobae relates that Leonardo Perona, the trustee appointed by
Cordoba's civil and commercial Court No. 5, submitted the
individual reports on May 18, 2005. These reports were based on
the authenticated claims of the Company's creditors, submitted
on or before March 30, 2005.

The bankruptcy case, which progressed from reorganization, will
end with the liquidation of the Company's assets.

CONTACT: Baicor S.R.L.
         Agustin Garzon 2244
         Barrio San Vicente (Cordoba)

         Mr. Leonardo Perona, Trustee
         Larranaga 62
         Cordoba


CERVECERIA Y MALTERIA: Fitch Upgrades, Assigns Ratings
------------------------------------------------------
Fitch has upgraded Cerveceria y Malteria Quilmes S.A.'s (CMQ)
long-term foreign currency rating to `B' from `B-' and assigned
a long-term local currency rating of `BB-'. The ratings have a
stable outlook.

The rating actions follow Argentina's debt exchange in June 2005
and the concurrent upgrade by Fitch of the Argentine country
ceiling to 'B' from 'B-'

CMQ's ratings reflect its dominant position in the Argentine
beer industry, strong financial profile, and diversification
into soft drinks, juices, and water. The ratings also take into
account the strong shareholders: the Bemberg family, via
Beverage Associates Corp. (BAC) and Companhia de Bebidas das
Americas (AmBev). Fitch rates AmBev's foreign currency debt
obligations 'BB+'. CMQ has low leverage, but most of its debt is
denominated in U.S. dollars while its revenues are generated in
Argentine pesos exposing the company to exchange rate
fluctuations as well as potential transfer and convertibility
(T&C) restrictions by the Argentine government. As a result,
CMQ's foreign currency rating is capped at the 'B' country
ceiling.

CONTACT: Daniel R. Kastholm +1-312-368-2070, Chicago
         Ana Paula Ares  +54 11 5235 8100, Buenos Aires
         Dolores Teran +54 11 5235 8100, Buenos Aires

MEDIA RELATIONS: Brian Bertsch +1-212-908-0549, New York


FULL CLEANING: Liquidating Assets to Pay Debts
----------------------------------------------
Buenos Aires-based Full Cleaning S.R.L. will begin liquidating
its assets following the pronouncement of the city's civil and
commercial Court No. 11 that the company is bankrupt, reports
Infobae.

The bankruptcy ruling places the company under the supervision
of court-appointed trustee, Daniel Guillermo. The trustee will
verify creditors' proofs of claim until Sep. 23, 2005. The
validated claims will be presented in court as individual
reports on Nov. 7, 2005.

Mr. Guillermo will also submit a general report, containing a
summary of the company's financial status as well as relevant
events pertaining to the bankruptcy, Dec. 20, 2005.

The bankruptcy process will end with the disposal company assets
in favor of its creditors.

Clerk No. 21 assists the court on this case.

CONTACT: Mr. Daniel Guillermo, Trustee
         Tucuman 1657
         Buenos Aires


HB COMUNICACIONES: Court Designates Trustee for Liquidation
-----------------------------------------------------------
San Isidro accountant Roberto Gilli was assigned trustee for the
liquidation of local company HB Comunicaciones S.R.L., relates
Infobae.

Mr. Gilli will verify creditors' claims until Aug. 12, 2005, the
source adds. After that, he will prepare the individual and
general reports, which are to be submitted in court.

The city's civil and commercial Court No. 8 handles the
Company's case. Clerk No. 12 assists the court with the wind-up
proceedings.

CONTACT: Mr. Roberto Gilli
         Rivadavia 479
         San Isidro (Buenos Aires)


LAGORIO ARGENTINA: Verification Deadline Approaches
---------------------------------------------------
Ms. Graciela Maria Caccavallo, the trustee for the Lagorio
Argentina S.A. bankruptcy case will cease verifying creditors'
proofs of claim on Sep. 1, 2005. The submission of the
individual and general reports will follow.

According to Infobae, Court No. 15 of Buenos Aires' civil and
commercial tribunal selected Ms. Caccavallo as trustee after
ordering the liquidation of Lagorio Argentina S.A.

Company defaulted on its obligations and the liquidation
pronouncement will effectively place its affairs as well as its
assets under the control of the trustee.

Clerk No. 29 assists the court on this case, which will end with
the disposal of the company's assets in favor of its creditors.

CONTACT: Ms. Graciela Maria Caccavallo, Trustee
         Estados Unidos 2552
         Buenos Aires


MOLINOS RIO: Fitch Raises LTFC, LTLC Ratings to `B'
---------------------------------------------------
Fitch Ratings has upgraded the long-term foreign and local
currency ratings of Molinos Rio de la Plata S.A. to 'B' from 'B-
' with a stable outlook.

The rating actions follow Argentina's debt exchange in June 2005
and the concurrent upgrade by Fitch of the Argentine country
ceiling to 'B' from 'B-'

The ratings of Molinos Rio de la Plata S.A. (Molinos) reflect
the company's leading business position in domestic branded food
products and its ability to generate dollar-based revenues
through exports. Molinos is exposed to volatility of crushing
margins in its agricultural commodity business and has high
leverage and some foreign currency mismatch resulting from the
company's mostly dollar-denominated debt.

CONTACT: Daniel R. Kastholm +1-312-368-2070, Chicago
         Ana Paula Ares  +54 11 5235 8100, Buenos Aires
         Dolores Teran +54 11 5235 8100, Buenos Aires

MEDIA RELATIONS: Brian Bertsch +1-212-908-0549, New York


MORRISON CEREALES: Court Selects Trustee
----------------------------------------
Belle Ville's civil and commercial Court No. 2 appointed
Alejandro Masso as trustee for the bankruptcy case of Morrison
Cereales S.R.L.

Infobae relates that the Company's assets will be placed under
the control of the trustee.

As the trustee, Mr. Masso is tasked with verifying the
authenticity of claims presented by the Company's creditors.
Following claims verification, the trustee will submit the
individual reports based on the forwarded claims for final
approval by the court. A general report will also be submitted
by the trustee to court.

Infobae reports that Clerk No. 4 assists the court on this case,
which will end with the disposal of the company's assets in
favor of its creditors.

CONTACT: Mr. Alejandro Masso, Trustee
         Cordoba 649
         Bell Ville (Cordoba)


PAN AMERICAN ENERGY: Fitch Assigns `BB-' LTLC Rating
----------------------------------------------------
Fitch assigned a `BB-' long-term local currency rating to Pan
American Energy LLC (PAE) with a stable outlook.

The rating actions follow Argentina's debt exchange in June 2005
and the concurrent upgrade by Fitch of the Argentine country
ceiling to 'B' from 'B-'

The ratings reflect PAE's strong and expanding asset base of
hydrocarbon reserves, its position as the second largest
hydrocarbon producer in Argentina, strong U.S. dollar revenues
from exports of oil and gas, ability to retain a material amount
of export revenues offshore, benefits related to its ownership
by BP plc (Fitch LTFC rating of 'AA+'), strong credit protection
measures, conservative financial position, and manageable debt
maturity profile. The rating also reflects concentration of
assets in Argentina, potential for increased interference in
Argentine export taxes or remittance requirements, political
concerns in Bolivia, inherent risks of commodity price
volatility, and its small size relative to BP's consolidated
operations.

CONTACT: Daniel R. Kastholm +1-312-368-2070, Chicago
         Ana Paula Ares  +54 11 5235 8100, Buenos Aires
         Dolores Teran +54 11 5235 8100, Buenos Aires

MEDIA RELATIONS: Brian Bertsch +1-212-908-0549, New York


PETROBRAS ENERGIA: LTLC Rating Raised to `BB-'
----------------------------------------------
Fitch upgraded the long-term local currency rating of Petrobras
Energia S.A. (PE) to 'BB-' from 'B' with a stable outlook
following Argentina's debt exchange in June 2005 and concurrent
upgrade of the Argentine country ceiling to 'B' from 'B-'.

PE's ratings are supported by its strong level of oil and gas
reserves, improved financial profile, significant cash
generation outside of Argentina, and its ability to retain a
material amount of export revenues offshore. A degree of
implicit parent support from Petrobras (rated 'BB-' on an
international foreign currency basis by Fitch), is incorporated
in the ratings. PE's growth remains subject to sizable capital
expenditure requirements, which should be manageable. The
company continues to be exposed to risks associated with the
shift in government policies away from market-oriented
frameworks and uncertainty regarding the integrity of the local
energy market (specifically the natural gas sector).

CONTACT: Daniel R. Kastholm +1-312-368-2070, Chicago
         Ana Paula Ares  +54 11 5235 8100, Buenos Aires
         Dolores Teran +54 11 5235 8100, Buenos Aires

MEDIA RELATIONS: Brian Bertsch +1-212-908-0549, New York


READY S.R.L.: General Report to be Submitted Aug. 11
----------------------------------------------------
The submission of the general report on the Ready S.R.L.
reorganization will be on Aug. 11, 2005, Infobae reports.

Ready S.R.L. successfully petitioned for reorganization after
Cordoba's civil and commercial Court No. 29 issued a resolution
opening the Company's insolvency proceedings.

Under insolvency protection, the Company will continue to manage
its assets subject to certain conditions imposed by Argentine
law and the oversight of a court-appointed trustee.

The trustee will be accepting creditors' proofs of claim for
verification until April 13, 2005.

After verifications, the trustee will prepare the individual
reports and submit it in court on June 2, 2005. The trustee will
also present a general report for court review on Aug. 11, 2005.

Ready S.R.L. will endorse to the creditors the settlement
proposal drafted from the submitted claims in an informative
assembly scheduled on Feb. 21 next year.

CONTACT: Ready S.R.L.
         Rosario de Santa Fe 231
         Cordoba


SERGIO RAMOS: Trustees to Submit General Report
-----------------------------------------------
The trustees for the Sergio Ramos Empresa Constructora
S.R.L. reorganization will submit a general report on Sep. 2,
2005.

Infobae reports that the court-appointed trustees, Humberto Jose
Gianello, Luis Omar Vega y Maria del Carmen Altamirano
authenticated creditors' claims until May 6, 2005. These claims
served as the basis for the individual reports which the
trustees presented to court on June 28, 2005.

An informative assembly between the Company and its creditors is
scheduled on March 7, 2006.

Sergio Ramos Empresa Constructora S.R.L. proceeded with
reorganization after Cordoba's civil and commercial Court No. 4
converted the Company's ongoing bankruptcy case into a "concurso
preventivo."

CONTACT: Sergio Ramos Empresa Constructora S.R.L.
         Echeverria 624
         Barrio Alto Alberdi (Cordoba)

         Humberto Jose Gianello, Luis Omar Vega y Maria del
         Carmen Altamirano, Trustees
         Marcelo T. de Alvear 267
         Cordoba


TELEFONICA DE ARGENTINA: Fitch Ups LTFC, LTLC Ratings to `B'
------------------------------------------------------------
Fitch raised its long-term foreign and local currency ratings on
Telefonica de Argentina S.A. (TASA) to 'B' from 'B-' with a
stable outlook following Argentina's debt exchange in June 2005
and concurrent upgrade of the Argentine country ceiling to 'B'
from 'B-'.

TASA's ratings reflect its strong market position, improved
financial profile, and historical support provided by its
parent, Telefonica S.A. TASA currently has a manageable debt
profile and has been applying most of its free cash flow to
reduce debt. The ratings also incorporate exposure to foreign
currency as most of TASA's revenues are peso-denominated while
its debt is largely foreign currency denominated. The company's
revenues are mainly originated by its regulated fixed-line
business exposing it to regulatory risks.

CONTACT: Daniel R. Kastholm +1-312-368-2070, Chicago
         Ana Paula Ares  +54 11 5235 8100, Buenos Aires
         Dolores Teran +54 11 5235 8100, Buenos Aires

MEDIA RELATIONS: Brian Bertsch +1-212-908-0549, New York


TELEFONICA HOLDING: LTFC, LTLC Ratings Raised to `B-'
-----------------------------------------------------
Fitch upgraded its long-term foreign and local currency ratings
on Telefonica Holding de Argentina S.A. (THA) to 'B-' from 'CCC'
with a stable outlook following Argentina's debt exchange in
June 2005 and concurrent upgrade of the Argentine country
ceiling to 'B' from 'B-'.

THA's ratings reflect the rating improvement of its underlying
asset, TASA. THA cash flow generation and its ability to service
its debt obligations depend on inflows from TASA. In addition,
the ratings consider the strong parent support as reflected by
Telefonica Internacional S.A. (THA's parent company) decision to
capitalize credits with THA for aproximately US$620 million.

CONTACT: Daniel R. Kastholm +1-312-368-2070, Chicago
         Ana Paula Ares  +54 11 5235 8100, Buenos Aires
         Dolores Teran +54 11 5235 8100, Buenos Aires

MEDIA RELATIONS: Brian Bertsch +1-212-908-0549, New York


TOWER RECORDS: Begins Liquidation
---------------------------------
Tower Records Argentina S.A. of Buenos Aires will begin
liquidating its assets after Court No. 26 of the city's civil
and commercial tribunal declared the company bankrupt. Infobae
reveals that the bankruptcy process will commence under the
supervision of court-appointed trustee, Enrique Kiperman y
Asociados.

The trustee will review claims forwarded by the Company's
creditors until Sep. 19, 2005. After claims verification,
Enrique Kiperman y Asociados will submit the individual reports
for court approval on Nov. 1, 2005. The general report will
follow on Dec. 14, 2005. Clerk No. 52 assists the court on this
case.

CONTACT: Tower Records Argentina S.A.
         11 de Septiembre 2147
         Buenos Aires



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

LORAL SPACE: Reorganization Plan Secures 95% Creditor Backing
-------------------------------------------------------------
Loral Space & Communications Ltd. obtained more than 95%
creditor approval for its plan to emerge from bankruptcy and
repay debt, reports Bloomberg.

As such, the Company will now seek approval of the plan from US
Bankruptcy Judge Robert Drain. Under US bankruptcy laws, a
debtor needs the support of two-thirds of its creditors before
it can present the plan to the judge for approval.

Loral proposes to repay fully its suppliers and other vendors
such as Alcatel SA, Alenia Spazia SpA and Lockheed Martin Corp.,
which are owed a total of US$116 million. Unsecured creditors
would receive stock in the New York-based company once it exits
bankruptcy. Shareholders would receive nothing.

Loral Space and certain of its subsidiaries filed on July 15,
2003 voluntary petitions for reorganization under chapter 11 of
title 11 of the United States Code in the United States District
Court for the Southern District of New York and parallel
insolvency proceedings in the Supreme Court of Bermuda in which
certain partners of KPMG were appointed as joint provisional
liquidators.

Loral Space & Communications is a satellite communications
company. It owns and operates a fleet of telecommunications
satellites used to broadcast video entertainment programming,
distribute broadband data, and provide access to Internet
services and other value-added communications services. Loral
also is a world-class leader in the design and manufacture of
satellites and satellite systems for commercial and government
applications including direct-to-home television, broadband
communications, wireless telephony, weather monitoring and air
traffic management.

CONTACT: Loral Space & Communications Ltd.
         600 Third Avenue
         New York, NY 10016
         USA
         URL: http://www.loral.com
         Phone: 212-697-1105



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

BERTIN LTDA: S&P Assigns 'B+' Corporate Credit Ratings
------------------------------------------------------
Standard & Poor's Ratings Services assigned Tuesday its 'B+'
foreign and local currency corporate credit ratings to Brazil-
based beef processor Bertin Ltda. (Bertin). At the same time,
Standard & Poor's assigned its 'B+' rating to Bertin's
forthcoming three-year senior unsecured and unsubordinated Euro
medium-term notes (EMTN) totaling approximately $100 million.
The outlook on the corporate credit ratings is stable.

"The ratings on Bertin reflect the company's high leverage that
has been supporting the company's significant growth in the past
six years," said Standard & Poor's credit analyst Marcelo Costa.
"In addition, the ratings on Bertin incorporate the inherently
volatile and cyclical nature of the industry and the fact that
its leveraged financial position should not present a meaningful
de-leverage until 2007, as the company is in the midst of a
sizable investment program. The EMTN's proceeds will be used
mostly to refinance and extend Bertin's current debt profile, as
well as to apply to investments to expand the business," he
added.

The risks of this aggressive financial profile are partially
offset by the company's leading competitive position in Brazil
as a result of its low cost, vertically integrated operations,
its focus on value-added product of the cattle chain, its large
export profile and the expectation that beef exports from Brazil
will continue to show robust growth, and its relatively
diversified global and domestic client revenue base.

The stable outlook incorporates Standard & Poor's expectations
that the company's strong cost position will allow it to deliver
robust volume growth and stable margins in the near future, even
under volatile foreign exchange rates, and that it will grow its
smaller business segments (H&C, personal protective equipment
and dog toys) in a prudent way. A positive outlook or upward
rating revision will depend on the company showing positive free
operating cash flow and a declining debt level, posting stable
indicators of total gross debt to EBITDA of 3.5x, FFO to total
gross debt of 20%, and EBITDA interest coverage of about 3x. On
the other hand, the ratings could be lowered or the outlook
revised negatively if the company shows less resilience to the
swings of the protein industry and its operating performance
deteriorates, leading to cash flow protection measures that are
below current levels.

Primary Credit Analyst: Marcelo Costa, Sao Paulo
(55) 11-5501-8955; marcelo_costa@standardandpoors.com

Secondary Credit Analyst: Milena Zaniboni, Sao Paulo
(55) 11-5501-8945; milena_zaniboni@standardandpoors.com


VARIG: 60-Day Period to Present Plan Kicks Off Tuesday
------------------------------------------------------
The 60-day period which ailing Brazilian airline Varig has to
present a restructuring plan aimed at recovering its financial
health began Tuesday, says the Associated Press. Once the plan
is ready, Varig will have an additional four months to negotiate
it with its creditors. The Company must secure 51% approval from
its creditors in order to execute the plan. Failure to get this
percentage will lead to the declaration of the Company's
bankruptcy.

Varig sought protection from creditors under the new bankruptcy
law, which took effect June 9, as it struggles to resolve debts
totaling around 9.5 billion reals ($4 billion). Its single
largest creditor is the Brazilian state. Other creditors include
the airline's pension fund, Aerus, as well as firms that lease
aircraft to the stricken company, including units of General
Electric Co., Boeing Co. and Goodrich Corp., along with
International Lease Finance Corp., a unit of American
International Group Inc.

CONTACT:  VARIG S.A. (Viacao Aerea Rio-Grandense)
          Avenida Almirante Silvio de Noronha, 365
          Rio de Janeiro, RJ 20021-010
          Brazil

          VICENTE CERVO - FOREIGN REPRESENTATIVE OF VARIG
          Attorneys for the Foreign Representative:
               PILLSBURY WINTHROP SHAW PITMAN LLP
               1540 Broadway
               New York, New York 10036-4039
               (212) 858-1000 (Phone)
               (212) 858-1500 (Fax)
               Rick B. Antonoff (RBA-4158)


* BRAZIL: Fundamentals Solid Despite Adverse Politics - S&P
-----------------------------------------------------------
Standard & Poor's Ratings services issued Tuesday a commentary
that finds that the solid fundamentals in fiscal and external
accounts that the Federative Republic of Brazil (BB-/Stable/B
foreign currency, BB/Stable/B local currency sovereign credit
ratings) has achieved over the last several years are expected
to continue despite adverse and ongoing political developments
and allegations of corruption in political processes.

The article, entitled "The Forest For The Trees: Looking At
Political Developments In Brazil Within The Context Of Its
Institutional Framework And Solid Fundamentals," reveals that
Brazil's ratings and outlook assume ongoing prudent policy
actions by President Luiz In cio Lula da Silva's government, and
presume that Brazil's institutional processes maintain integrity
in the midst of current political turmoil.

"The current political context renders passage of controversial
pieces of legislation or reform more difficult, although given
Brazil's electoral cycle the expectation of limited progress is
already incorporated in the ratings," said Standard & Poor's
credit analyst Lisa Schineller. "The ratings, however, do assume
continued commitment to prudent macroeconomic policy by the
current and future governments and appropriate and adequate
policy response to internal or external shocks. Should policy
commitment falter, the rating and/or outlook could be affected,"
she added.

According to Ms. Schineller, strengthened fiscal and external
fundamentals during the past several years better enable Brazil
to withstand adverse shocks. That said, favorable global
liquidity conditions have likely contributed to dampening
financial market reaction to the crisis to date.

"Policy signals suggest that the Lula government recognizes the
importance of maintaining macroeconomic stability," Ms.
Schineller said. "In addition, Brazil's institutional framework
limits the degree to which policy can regress," she explained.

The current debate among the government, politicians, and the
private sector about the efficacy of targeting a "zero nominal
deficit" demonstrates growing political maturity and the broad
support for strong fiscal management. Although meaningful
progress on legislating a credible zero nominal deficit policy
seems low at this point in time given the political complexities
involved, it is noteworthy that such a discussion is occurring.

"Comparatively strong institutions vis--vis other peer credits
also support Brazil's rating despite the seriousness of the
political crisis and allegations of corruption," noted Ms.
Schineller. "The allegations are being investigated within the
context of an open and strong democracy utilizing Brazil's
system of checks and balances: Congress, the judiciary, the
press, and society at large. This highlights the vibrancy of
Brazil's institutional framework," she concluded.

Primary Credit Analyst: Lisa M Schineller, New York
(1) 212-438-7352; lisa_schineller@standardandpoors.com

Media Contact: David Wargin, New York (1) 212-438-1579;
david_wargin@standardandpoors.com



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

MANQUEHUE NET: GTD Seeks to Conclude Due Diligence by August
------------------------------------------------------------
Telecoms holding company GTD hopes to finish due diligence on
local telco Manquehue Net in August. After which, both companies
are expected to sign the papers for an acquisition operation and
then GTD will take over Manquehue.

GTD offered to pay CLP14.5 billion (US$25mn) to acquire 100% of
Manquehue including the latter's US$85-million debt.

Manquehue is owned today by gas distribution firm Metrogas
(25.54%), US telecoms holding company Williams International
Telecom (23.52%), Capital Trust (19.14%), Chile's Rabat family
(19.13%) and Xycom Devel Chile (12.67%).



===================
C O S T A   R I C A
===================

ICE: ArtinSoft Seeks to Overturn Comptroller's Decision
-------------------------------------------------------
U.S. software producer ArtinSoft has filed a constitutional
appeal to overturn a second ruling by Costa Rica's comptroller
to reject a contract signed between its local unit and state
telecoms and electricity monopoly ICE.

Business News Americas recalls that in 2003, ICE awarded
ArtinSoft Zona Franca, the local unit of ArtinSoft, two
contracts to put ICE's customer service (SIMO) and billing
systems (GITEL) on an integrated telephony management platform,
at a cost of US$3.3 million for each service.

But in November 2004, the comptroller blocked the contract,
saying the capacity of the system proposed by ArtinSoft should
be above and beyond the basic requirements of the auction rather
than merely meeting the minimum requirements.

In May this year, the comptroller ordered ICE to conduct a new
test demonstrating the capacity and efficiency of the proposed
software as well as details of the parameters used in the test.

But according to ArtinSoft Zona Franca's director Carlos Araya,
these rulings are illegal.

"There are clear procedural errors in the rejection of both
auctions," Araya said.

Araya added that ArtinSoft carried out the tests requested by
the comptroller when ICE studied the offers during the auction
in 2003 and that the results were satisfactory.

ICE is losing US$1 million a month due to the inefficiency of
its outdated systems and if Artinsoft's contracts are held up
any longer, ICE will have to make unnecessary investments to
upgrade its equipment, according to Araya.



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

DIGICEL LIMITED: Fitch Rates $250M Proposed Issuance 'B'
--------------------------------------------------------
Fitch Ratings has assigned a rating of 'B' to Digicel Limited,
senior unsecured debt, including the proposed US$250 million
senior notes offering due 2012. Proceeds from the offering are
expected to be used to refinance existing indebtedness including
shareholder loans, to fund the roll-out of a new license in
Trinidad and Tobago and to acquire the Caribbean and Bermuda
assets of Cingular. The Outlook for the Ratings is Stable.

Digicel's ratings reflects its position as the leading provider
of wireless services in the Caribbean, its strong brand
recognition and growing portfolio of wireless assets in the
Caribbean, and its manageable, yet high, financial leverage.
Digicel benefits from rapidly growing operating cash flow in its
core operating assets. In fiscal 2005, five of its six wireless
operations were EBITDA positive and generated a consolidated
EBITDA of US$155 million adjusted for non-recurrent items. The
company's operating cash flow is concentrated in Jamaica,
Digicel's largest market, despite operating in a diverse set of
eight Caribbean markets. Jamaica is by far the most populated of
the countries in which it delivers services, accounting for 75%
of covered POPs. In fiscal 2005, Digicel Jamaica represented the
vast majority of EBITDA from its six core operating units;
Jamaica should decline to approximately 60% to 65% by 2008 as
newer operations start up and mature, primarily from its
Trinidad and Tobago operation scheduled to start up later this
year. The ratings incorporate sovereign risks, including
transfer and convertibility, associated with investments in
Jamaica.

Digicel's short operating history has been successful. The
company has rapidly gained leading market shares in most of the
markets served by successfully executing a strategy of launching
operations with strong initial geographic coverage, good
customer service, effective branding, and through strong product
offerings. This strategy has proved successful in turning
operations EBITDA-positive in a short period of time and gaining
subscribers at a rapid pace. The company has quickly gained
leading market share positions versus incumbent operators in
most markets served. Digicel's estimated market share ranged
between 37% and 72%, with an aggregate estimated market share of
67%; Digicel Jamaica's estimated market share is 72%.

Wireless penetration level in most of Digicel's markets is high,
ranging between 45% and 90%; aggregate estimated wireless
penetration in markets served is estimated to be approximately
71%. High wireless penetration rates are the result of low
fixed-line penetration levels, long waiting periods to get
fixed-line connections, good network coverage by wireless
service providers, and substitution of fixed-line by mobile. The
combination of high market shares and wireless penetration rates
should result in more moderate EBITDA growth than has been in
the recent past, nearer to existing run rates, for the existing
core group of assets.

The majority of the operating cash flow growth is expected to
occur primarily from start-up operations in Trinidad & Tobago,
one of the most populated Caribbean countries in which the
company provides services. Digicel has commenced build-out and
the expansion should help the company to further diversify
operations away from Jamaica to lower risk sovereigns. Trinidad
and Tobago is not expected to turn free cash flow positive until
2008, after initial capital expenditures and other start-up
operating costs are complete. The recent acquisition of the
Cingular Caribbean assets is also expected to add to cash flow
growth, but to a lesser extent. The cash requirement for both
the Cingular assets acquisition and the Trinidad & Tobago roll-
out is expected to be fully funded from the proceeds of the
proposed debt offering, increases in senior secured debt,
balance sheet cash and approximately $70 million of non-recourse
financing at the Trinidad and Tobago operating level.

Digicel will have high leverage and debt levels after the
completion of the proposed debt issuance, consistent with the
rating category. Pro forma consolidated total debt-to-EBITDA
should increase to 4.1 times (x) from 2.7x. Over the next fiscal
year, leverage is expected to remain stable as incremental
EBITDA growth from existing operations is expected to offset
losses at Trinidad and Tobago as well as integration costs of
the Cingular assets. By the end of fiscal 2007, leverage is
expected to decrease to between 2.5x to 3.0x and below 2.5x in
fiscal 2008. The company maintains ample liquidity, and debt
service is expected to be manageable.

The senior notes are subordinated to $393 million of senior
secured bank debt at the operating company level, which has been
incorporated into our rating; structural subordination risks
have been mitigated through upstream guarantees from Digicel's
wholly owned operating companies.

Digicel Limited is a wireless services provider in the Caribbean
region founded in 2000 and controlled by Denis O'Brien. The
company started operations in Jamaica in April 2001 and now
offers GSM mobile services in eight countries of the Caribbean
including Jamaica, St. Lucia, St. Vincent, Aruba, Grenada,
Barbados, Cayman, and Curacao. In addition, it recently acquired
licenses in Trinidad and Tobago and Haiti and has announced an
agreement to acquire Cingular's Caribbean operations. Digicel
finished fiscal 2005 with 1.722 million total subscribers (97%
pre-paid), estimated market share of 66%, and revenues and
EBITDA of US$478 million and US$155 million, respectively.



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

AMERICAS MINING/SPCC/MINERA MEXICO: S&P Raises Ratings
------------------------------------------------------
Standard & Poor's Rating Services said today that it raised its
long-term corporate credit rating on Americas Mining Corp.
(AMC), Southern Peru Copper Corp. (SPCC), and Minera Mexico S.A.
de C.V. (MM) to 'BBB-' from 'BB-'. The outlook is revised to
stable from positive. At the same time, it assigned its 'BBB-'
foreign currency senior debt rating to SPCC's $600 million bonds
due 2035. Proceeds from the issue will be used to refinance debt
at both SPCC and MM. Additionally, Standard & Poor's downgraded
ASARCO Inc. to 'CCC/Negative/--'.

"The three-notch upgrade indicates the companies' improved
operational performance, reduced debt level, extended maturity
debt profile, and our decision to analytically delink the
ratings on SPCC and AMC from those on ASARCO, the U.S.-based
sister company to SPCC, also owned by AMC," said Standard &
Poor's credit analyst Juan P. Becerra. The rating also
incorporates a more moderate financial profile going forward as
evidenced by SPCC's commitment to keep a maximum total debt-to-
EBITDA ratio of less than 1.7x throughout the cycle going
forward.

The notes issued by SPCC are not notched down from the issuer
credit rating, despite some structural subordination to
liabilities at subsidiary MM. We considered that SPCC's Peruvian
operation is a branch of SPCC and therefore most obligations
incurred by the branch (except for local tax liabilities) would
be pari-passu with SPCC notes. We also considered that
liabilities at MM, after the debt pay-down expected from its use
of proceeds, would be significant (approximately $1 billion,
including significant nonfinancial debt liabilities, compared to
consolidated assets of approximately $5.3 billion), but not
enough to indicate a ratings differentiation.

The ratings on AMC (SPCC's holding company) and SPCC reflect its
low cash cost position; significant scale, given SPCC's position
as the fifth-largest copper producer in the world; meaningful
geographic mine diversification, with four major mines and about
50% of normalized cash flow expected each from Mexico and Peru;
its vertical integration; its long life reserves; its above-
average ore grades and very manageable debt levels thanks to
recent reductions at AMC and MM; and the remoteness of contagion
from ASARCO's environmental and asbestos liabilities. These
factors are balanced by SPCC's limited product diversification,
volatile copper price, its moderately aggressive dividend
practice, and significant political and transfer risk
represented by cash flow generated by operations located in the
Republic of Peru (FC: BB/Positive/B). The rating on SPCC is two
notches above that on the Republic of Peru, due to significant
country risk and transfer and convertibility risk mitigation
from Mexican source cash flow. We believe Mexican cash flow
alone would be sufficient to service SPCC's total foreign
currency and Mexican peso debt for a limited period of time, in
case of foreign exchange controls in Peru.

The sharp difference in ratings between AMC and ASARCO reflects
our expectations that ASARCO should receive very limited support
from its parent company AMC. It also takes into consideration
the legal status of various environmental and asbestos claims
against ASARCO, which have not pierced AMC's corporate veil, and
we expect the probability of doing so in the future is very low.
There are outstanding fraudulent conveyance claims in connection
with the 2003 sale of SPCC (Peru) to AMC by ASARCO, alleged
against AMC, AMC's parent Grupo Mexico, and SPCC's indirect
subsidiary Mexicana del Cobre. We believe the likelihood of a
successful claim, which would in any case affect SPCC only
indirectly through claims against AMC, is low and consistent
with the 'BBB-' ratings.

The outlook reflects our expectation of continued strong
operating performance, even at more conservative copper price
scenarios, and the maintenance of a moderate financial profile.
The rating could be lowered if AMC Holding changes its prudent
debt-free policy to a more aggressive one, if SPCC's dividend
payments endanger its financial profile, or if SPCC's total
debt-to-EBITDA ratio is more than 1.7x. The rating on SPCC is
also constrained from further upgrades, due to still significant
Peruvian political risk and transfer and convertibility risk. An
outlook revision to positive or rating upgrade would require a
combination of several factors, including further deleveraging,
improved cost position, and a significant increase in Mexican-
source cash flow or a reduction in Peruvian risk.

Primary Credit Analyst: Juan P Becerra, Mexico City
(52) 55-5081-4416; juan_becerra@standardandpoors.com

Secondary Credit Analyst: Santiago Carniado, Mexico City
(52) 55-5081-4413; santiago_carniado@standardandpoors.com



GRUPO MEXICO: S&P Cuts Asarco's Ratings to 'CCC' From 'BB-'
-----------------------------------------------------------
Standard & Poor's Rating Services lowered Tuesday its long-term
corporate credit rating on Asarco Inc. (Asarco) to 'CCC' from
'BB-'. In addition, Asarco's outlook was revised to negative
from positive.

"The downgrade reflects the change in Standard & Poor's
expectations of parent support from Asarco's direct parent
Americas Mining Corp. (AMC) and indirect parent Grupo Mxico
S.A. de C.V. (Grupo Mexico), which in turn reflects recent
changes at AMC and recent sharply negative developments at
Asarco," said Standard & Poor's credit analyst Juan P. Becerra.
"These changes include the completion of the corporate
restructuring at AMC, with the intention of isolating the
company from Asarco; high exposure to environmental and asbestos
liabilities; poor operating performance, with production costs
higher than the industry average; and the recent union strike at
Asarco's facilities, with the inherent uncertainties about the
effects on future production. Factors supporting the rating
include minimal debt maturities in the next seven years and
current favorable industry conditions."

The negative outlook reflects uncertainties about the length of
the strike, the potential risk of a Chapter 11 filing of
Asarco's operating companies due to the material environmental
or asbestos claims, and the reliance on the inter-company note
due from AMC in order to meet its short-term obligations.

Primary Credit Analyst: Juan P Becerra, Mexico City
(52) 55-5081-4416; juan_becerra@standardandpoors.com


GRUPO MEXICO: S&P Raises Ratings to 'BBB-'; Outlook Stable
----------------------------------------------------------
Standard & Poor's Rating Services raised Tuesday its long-term
foreign currency corporate credit rating on Grupo Mexico S.A. de
C.V. (Gmexico) to 'BBB-' from 'BB'. The outlook is revised to
stable from positive.

The two-notch upgrade on Gmexico reflects the upgrade of
Americas Mining Corp. (AMC; Gmexico 100%-owned subsidiary) to
'BBB-' from 'BB-'. The upgrade on AMC indicates the companies'
improved operational performance, reduced debt level, and
extended maturity debt profile, and our decision to analytically
delink the ratings on Southern Peru Copper Corp. (SPCC) and AMC
from those on ASARCO Inc., the U.S.-based sister company to SPCC
also owned by AMC.

"The rating on Gmexico reflects the company's improved debt
profile; AMC's better financial performance; the below-average
cost cash position at SPCC, AMC's direct operational subsidiary;
and Ferromex's (Gmexico's railroad operational subsidiary)
steady cash-flow generation," said Standard & Poor's credit
analyst Juan P. Becerra. These factors are somewhat offset by
the cyclical and volatile copper prices and high fuel cost that
affect its mining and railroad divisions.

The rating could be lowered if the rating on AMC is lowered or
if the conservative debt policy at Gmexico holding is changed.
The rating on Gmexico could be raised if the rating on AMC is
raised and if Ferromex's operation continues its positive
performance. Nevertheless, the rating on AMC is currently
significantly constrained by Peruvian political and transfer and
convertibility risk, despite significant mitigation provided by
Mexican source cash flow. Mexican cash flow is expected to
account for approximately 50% of SPCC cash flow going forward.

Primary Credit Analyst: Juan P Becerra, Mexico City
(52) 55-5081-4416; juan_becerra@standardandpoors.com

Secondary Credit Analyst: Santiago Carniado, Mexico City
(52) 55-5081-4413; santiago_carniado@standardandpoors.com



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

SPCC: Cash Position Falls In 2 Mos. Due to Dividend Payment
-----------------------------------------------------------
Southern Peru Copper Corporation's (SPCC) cash, cash equivalents
and marketable securities at May 31, 2005 was approximately
US$345 million, compared with US$809 million at March 31, 2005.

In a filing to the securities regulator, the Company said the
decrease is a result of the US$350 million dividend paid on May
13, 2005, as well as a final 2004 income tax payment of US$172
million.

At May 31, 2005, SPCC's long-term debt, including current
portion, was approximately US$1.12 billion, compared with
US$1.21 billion at March 31, 2005.

Southern Peru Copper is controlled by Mexican conglomerate Grupo
Mexico and holds mining subsidiaries with operations in Peru and
Mexico.

CONTACT:  SOUTHERN PERU COPPER CORP.
          Avenida Caminos del Inca #171
          Chacarilla del Estanque
          Santiago de Surco
          Lima, 33
          Peru
          Website: http://www.southernperu.com
          Phone: +51-(0)1-372-1414
          Officers: Oscar Gonzalez Rocha, Pres.



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

BANCO COMERCIAL: Govt Hires Local, Int'l Firms to Advise on Case
----------------------------------------------------------------
Uruguay's government has hired five local and international law
firms to advise it in an upcoming civil lawsuit against CSFB
(NYSE: CSR), JPMorgan Chase (NYSE: JPM), and Dresdner for their
role in the defunct bank Banco Comercial, reports Business News
Americas.

Economy minister Danilo Astori recently confirmed that the
government will sue the three international banks, accusing them
of not honoring their obligations to Comercial as shareholders.

The three banks were all co-shareholders in Banco Comercial,
which was intervened in 2002 together with several other banks
due to capital problems and a massive run on deposits. They
recently filed for new arbitration proceedings at the
International Court of Arbitration of the Paris-based
International Chamber of Commerce (ICC), claiming the government
didn't comply with the ICC ruling in January.

In January, the ICC ordered the government to repay the three
banks US$120 million for a capital injection that was undertaken
during the financial crisis in 2002.



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

SIDOR: CVG Sheds Light on the Delay of Dividend Payments
--------------------------------------------------------
The delay in the disbursement of dividend payments by state
heavy industry holding CVG to the workers at steelmaker Sidor
has angered the latter, reports Business News Americas.

"We have been trying to contact people from CVG to clarify the
reasons for the delay and they have said they have to meet some
legal deadlines and other aspects we don't understand," said
Giovanni Barrios, the spokesperson for Sidor workers due to
receive the class B dividends.

Sidor is almost 60%-owned by the Amazonia consortium of Mexico's
Hylsamex, the Techint group, Brazil's Usiminas and Venezuela's
Sivensa. CVG has the other 40%, and half of this is in the
process of being transferred to current and former employees.

CVG was supposed to make the dividend payments on June 30 but
delayed doing so, saying in an announcement that the entity and
the basic industry and mining ministry "have conducted a series
of compulsory procedures with relevant authorities."

In the announcement, the entities ratify "their willingness to
pay class B shareholders the amount of dividends they are
entitled to."

The authorities also said they regret the attitude of some
shareholders who deny the goodwill shown by the companies, which
have dealt with complaints from shareholders.

"They irresponsibly distort information and generate a
distressing and alarming environment that is not needed among
shareholders," CVG said in the announcement.



                            ***********


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
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Copyright 2005.  All rights reserved.  ISSN 1529-2746.

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