/raid1/www/Hosts/bankrupt/TCRLA_Public/080313.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, March 13, 2008, Vol. 9, No. 52
Headlines
A R G E N T I N A
COMPULBIKE SA: Trustee Verifying Proofs of Claim Until April 23
DISTRIBUIDORA MIA: Proofs of Claim Verification Ends April 16
SUMMIT GROUP: Files Reorganization Petition in Court
TARPIN RICARDO: Proofs of Claim Verification Is Until March 19
TELECOM ARGENTINA: Grupo Werthein Buys 2% Stake in Controller
TELECOM ARGENTINA: Eyes 105% Mobile Penetration in Argentina
B E R M U D A
INTELSAT LTD: To Hold Financials Conference Call on March 20
MONTPELIER RE: Names Michael Paquette as Chief Financial Officer
B R A Z I L
BANCO NACIONAL: Will Create Project Structure Fund
CIA. ENERGETICA: Five Companies Will Bid for Controlling Stake
COMPANHIA ENERGETICA: To Bid for Jirau Plant With Madeira Group
COMPANHIA SIDERURGICA: Buys Insurance Abroad for US$9.5B Assets
COMPANHIA SIDERURGICA: Iron Ore Sales to Bring US$2.0B Revenues
COMPANHIA SIDERURGICA: To Increase Product Prices on March 18
ENERGIAS DO BRASIL: Registers as Bidder for Companhia Energetica
FURNAS CENTRAIS: Won't Bid for Control of Companhia Energetica
LAZARD LTD: Brendan Dyson Leads Corporate Finance Advisory Group
TAM SA: Reports 67.3% International Market Share in February
* BRAZIL: Structured Finance Ratings Remain Stable, S&P Says
C A Y M A N I S L A N D S
AMA INVESTMENT: Sets Final Shareholders' Meeting for March 19
CONOCOPHILLIPS MEA: Proofs of Claim Filing Is Until March 18
ESPRIT GENERAL: Proofs of Claim Filing Deadline Is March 18
JANUS GLOBAL: Sets Final Shareholders' Meeting for March 19
LODESTONE COMPANY: Proofs of Claim Filing Is Until March 19
SCOTTISH RE: Moody's Junks Preferred Stock Debt Rating
C O L O M B I A
BANCOLOMBIA: Deutsche Bank Hikes Net Income Estimate by 8%
C O S T A R I C A
ALCATEL-LUCENT SA: Acquiring ReachView Technologies
ALCATEL-LUCENT SA: SanDisk Pursues Declaratory Suit vs Firm
D O M I N I C A N R E P U B L I C
BASIC ENERGY: S&P Lifts Corporate Credit Rating to 'BB-'
E C U A D O R
PETROECUADOR: Seeks Contractors to Develop Amazon Fields
G U A T E M A L A
SOLERA HOLDINGS: Appoints Jason Brady as Global Legal Counsel
J A M A I C A
NATIONAL COMMERCIAL: Account Closure Won't Cripple Cash Plus
NATIONAL WATER: Stops Water Supply in Buena Vista Mountain
M E X I C O
BEARINGPOINT INC: Dec. 31 Balance Sheet Upside Down by $469.2MM
CHARLES RIVER: Moody's Revises Outlook to Stable; Holds Ratings
DESARROLLADORA HOMEX: Holders Approve US$250MM Share Repurchase
EMPRESAS ICA: Unit Submits Proposal for Periferico Norte Project
* Fitch Says US Downturn Won't Affect Mexican Sovereign Ratings
P A N A M A
SOLO CUP: Reports US$68 Million Net Income in Fiscal Year 2007
P A R A G U A Y
TELECOM PERSONAL: Will Launch 3G Services in Asuncion
V E N E Z U E L A
CITGO PETROLEUM: Will Honor Long-Term Crude Agreements
PETROLEOS DE VENEZUELA: To Form Company With Energia Argentina
PETROLEOS DE VENEZUELA: Will Discuss Asset Swap With Exxon Mobil
* VENEZUELA: Banking Sector Expands Loan Portfolio, Fitch Says
X X X X X X
* Fitch Publishes Latin America Rating List Summary For February
- - - - -
=================
A R G E N T I N A
=================
COMPULBIKE SA: Trustee Verifying Proofs of Claim Until April 23
---------------------------------------------------------------
Jorge Fernando Podhorzer, the court-appointed trustee for
Compulbike S.A.'s reorganization proceeding, will be verifying
creditors' proofs of claim until April 23, 2008.
Mr. Podhorzer will present the validated claims in court as
individual reports on June 5, 2008. The National Commercial
Court of First Instance in Buenos Aires will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Compulbike and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Compulbike's
accounting and banking records will be submitted in court on
July 18, 2008.
Creditors will vote to ratify the completed settlement plan
during the assembly on March 12, 2009.
The trustee can be reached at:
Jorge Fernando Podhorzer
Pasaje del Carmen 716
Buenos Aires, Argentina
DISTRIBUIDORA MIA: Proofs of Claim Verification Ends April 16
-------------------------------------------------------------
Felix Rodolfo Gambini, the court-appointed trustee for
Distribuidora Mia S.R.L.'s bankruptcy proceeding, will be
verifying creditors' proofs of claim until April 16, 2008.
Mr. Gambini will present the validated claims in court as
individual reports. The National Commercial Court of First
Instance in Mar del Plata, Buenos Aires, will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Distribuidora Mia and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Distribuidora Mia's
accounting and banking records will be submitted in court.
Infobae didn't state the submission deadlines for the reports.
Mr. Gambini is also in charge of administering Distribuidora
Mia's assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Distribuidora Mia S.R.L.
Estrada 5644, Mar del Plata
Buenos Aires, Argentina
The trustee can be reached at:
Felix Rodolfo Gambini
Catamarca 2076, Mar del Plata
Buenos Aires, Argentina
SUMMIT GROUP: Files Reorganization Petition in Court
----------------------------------------------------
Summit Group Corporation S.A. has requested for reorganization
approval after failing to pay its liabilities.
The reorganization petition, once approved by the court, will
allow Summit Group to negotiate a settlement with its creditors
in order to avoid a straight liquidation.
The case is pending in the National Commercial Court of First
Instance in Buenos Aires.
The debtor can be reached at:
Summit Group Corporation S.A.
Hipolito Yrigoyen 1530
Buenos Aires, Argentina
TARPIN RICARDO: Proofs of Claim Verification Is Until March 19
--------------------------------------------------------------
Graciana Carmen Magi, the court-appointed trustee for the
bankruptcy proceeding of Tarpin Ricardo Eduardo (extension de
quiebra de Construcciones Agropecuarias S.R.L.), will be
verifying creditors' proofs of claim until March 19, 2008.
Ms. Magi will present the validated claims in court as
individual reports on May 8, 2008. The National Commercial
Court of First Instance in Santa Fe will determine if the
verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will
be raised by Tarpin Ricardo and its creditors.
Inadmissible claims may be subject for appeal in a separate
proceeding known as an appeal for reversal.
A general report that contains an audit of Tarpin Ricardo's
accounting and banking records will be submitted in court on
June 19, 2008.
Ms. Magi is also in charge of administering Tarpin Ricardo's
assets under court supervision and will take part in their
disposal to the extent established by law.
The debtor can be reached at:
Tarpin Ricardo Eduardo
Balcarce 1328, Ciudad de Santa Fe
Santa Fe, Argentina
The trustee can be reached at:
Graciana Carmen Magi
Cochabamba 462, Rosario
Santa Fe, Argentina
TELECOM ARGENTINA: Grupo Werthein Buys 2% Stake in Controller
-------------------------------------------------------------
Published reports say that Grupo Werthein has acquired an
additional 2% stake in Sofora, which controls Telecom Argentina,
from France Cable et Radios and Atlas Service Belgium.
Grupo Werthein now controls 50% of Sofora, while Telecom Italia
owns the remaining stake, Business News Americas reports.
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/-- provides telephone-related
services, such as international long-distance service and data
transmission and Internet services, and through its
subsidiaries, wireless telecommunications services,
international wholesale services and telephone directory
publishing. As of Dec. 31, 2006, its telephone system included
approximately 4.09 million lines in service.
As of 2007, current approximate ownership of Telecom Argentina
is:
(a) 54.74% by Nortel Inversora S.A., itself a consortium made
up of: Werthein Group (50%) and Telecom Italia group
(50%);
(b) 41.5% publicly traded; and
(c) 4.21% employee stock ownership program.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 21, 2008, Fitch Ratings upgraded Telecom Argentina SA's
Foreign currency Issuer Default Rating to 'B+' from 'B', Local
currency IDR upgraded to 'B+' from 'B' and Senior unsecured
notes upgraded to 'B+/RR4' from 'B'/RR4. Fitch's rating outlook
for the local currency IDR and national scale rating for Telecom
Argentina remained positive and the rating outlook for the
foreign currency IDR is revised to stable from positive.
TELECOM ARGENTINA: Eyes 105% Mobile Penetration in Argentina
------------------------------------------------------------
Telecom Argentina's Chairperson Carlos Felices said in a
conference call that mobile telephony penetration in Argentina
could reach 105% by year-end, Business News Americas reports.
Expected penetration for 2009 is 110%, BNamericas says, citing
Mr. Felices.
Telecom Argentina's Chief Operating Officer Marco Patuano
commented to BNamericas, "We expect a significant increase in
the mobile base this year. . . . The market is mature but that
does not mean that the market has finished growing."
Mr. Patuano told BNamericas that there will be a rates
adjustment in the mobile segment this year due to inflation in
Argentina.
Mobile unit Telecom Personal will continue concentrating on
value added services this year, BNamericas says, citing Mr.
Patuano. About 50% of Telecom Personal's subscribers have
handsets that allow the provision of innovative services, and
"we expect to have an evolution in content and other value added
services in the next two years," Mr. Patuano commented to
BNamericas.
Telecom Argentina's investment in 2008 will be ARS1.7 billion
while capex for 2009 will be up to ARS1.9 billion, BNamericas
states, citing Mr. Patuano.
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/-- provides telephone-related
services, such as international long-distance service and data
transmission and Internet services, and through its
subsidiaries, wireless telecommunications services,
international wholesale services and telephone directory
publishing. As of Dec. 31, 2006, its telephone system included
approximately 4.09 million lines in service.
As of 2007, current approximate ownership of Telecom Argentina
is:
(a) 54.74% by Nortel Inversora S.A., itself a consortium made
up of: Werthein Group (50%) and Telecom Italia group
(50%);
(b) 41.5% publicly traded; and
(c) 4.21% employee stock ownership program.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 21, 2008, Fitch Ratings upgraded Telecom Argentina SA's
Foreign currency Issuer Default Rating to 'B+' from 'B', Local
currency IDR upgraded to 'B+' from 'B' and Senior unsecured
notes upgraded to 'B+/RR4' from 'B'/RR4. Fitch's rating outlook
for the local currency IDR and national scale rating for Telecom
Argentina remained positive and the rating outlook for the
foreign currency IDR is revised to stable from positive.
=============
B E R M U D A
=============
INTELSAT LTD: To Hold Financials Conference Call on March 20
------------------------------------------------------------
Intelsat Ltd. will hold a conference call to discuss its fourth
quarter and full year 2007 financial results on March 20, 2008,
at 11:00 a.m. EDT.
The live audio webcast and earnings press release will be
accessible through the Intelsat Investor Relations Web site:
http://www.intelsat.com/investors
To participate on the live call, United States-based
participants should call (866) 800-8652. Non-U.S. participants
should call +1 (617) 614-2705. The participant pass code is
84341724. Participants will have access to a replay of the
conference call through Thursday, March 27, 2008. The replay
number for U.S.-based participants is (888) 286-8010 and for
non-U.S. participants is +1 (617) 801-6888. The participant
pass code is 33580063.
Headquartered in Pembroke, Bermuda, Intelsat, Ltd. --
http://www.intelsat.com/-- is the largest fixed satellite
service operator in the world and is owned by Apollo Management,
Apax Partners, Madison Dearborn, and Permira. The company has a
sales office in Brazil.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 19, 2008, Standard & Poor's Ratings Services lowered its
corporate credit rating on Bermuda-based Intelsat Ltd. to 'B'
from 'B+' and removed the ratings from CreditWatch. S&P said
the outlook is stable.
MONTPELIER RE: Names Michael Paquette as Chief Financial Officer
----------------------------------------------------------------
Montpelier Re Holdings Ltd. has appointed Michael S. Paquette as
Chief Financial Officer and an Executive Vice President,
effective May 1, 2008.
Mr. Paquette joined the company in May 2007 as Group Controller
after serving 18 years with White Mountains Insurance Group,
Ltd. in a variety of capacities, including its Controller. He
received a Bachelor of Science in Business Administration from
the University of Vermont and is a Certified Public Accountant,
a Certified Management Accountant and a Certified Financial
Manager.
Chief Executive Officer and Chairperson, Anthony Taylor said:
"Mike was instrumental in the foundation of Montpelier, working
with the original start-up team to establish our Bermuda
operations. Since he joined us last spring we have benefited
greatly from his wide range of talents and his strong leadership
of our expanded Finance team."
Kernan (Kip) V. Oberting, who has served as CFO of Montpelier
since October 2004, is leaving the company to establish a New
Hampshire-based investment advisory company and will continue to
provide Montpelier with corporate finance, asset allocation and
investment advisory services until 2010. The company and Mr.
Oberting may extend the term of such services thereafter by
mutual agreement.
Mr. Taylor continued, "Kip has been a very innovative and
creative CFO, and we very much look forward to his continued
association with Montpelier as an active advisor to the Company.
We are pleased that we will continue to enjoy the benefit of his
wealth of corporate finance and capital management experience
into the future."
About Montpelier Re Holdings
Headquartered in Bermuda, Montpelier Re Holdings Ltd. --
www.montpelierre.bm -- through its operating subsidiary
Montpelier Reinsurance Ltd., provides customized, innovative,
and timely reinsurance and insurance solutions to the global
market. The company has operations in the United States and
Europe.
* * *
To date, Montpelier Re Holdings holds A.M. Best's "bb+"
subordinated debt rating and "bb" preferred stock rating.
===========
B R A Z I L
===========
BANCO NACIONAL: Will Create Project Structure Fund
--------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social has
authorized the creation of a project structure fund to finance
technical studies and project development in the logistics,
energy, social and urban infrastructure sectors.
Business News Americas relates that the fund will have
BRL20 million in non-reimbursable funds.
According to BNamericas, funding will be divided into these
categories:
-- project support, to carry out studies in specific
investment projects; and
-- prospecting support, to identify potential projects
with long-term timelines.
Funded projects should promote economic and social development
in Brazil or integration in Latin America. Studies for projects
with a high social return or needing significant public or
private investments will be selected for the funding. Banco
Nacional launched the fund to support these studies, BNamericas
states.
Banco Nacional de Desenvolvimento Economico e Social is Brazil's
national development bank. It provides financing for projects
within Brazil and plays a major role in the privatization
programs undertaken by the federal government.
* * *
Banco Nacional currently carries a Ba2 foreign long-term bank
deposit rating from Moody's Investors Service, and a BB+ long-
term foreign issuer credit rating from Standards and Poor's
Ratings Services. The ratings were assigned in August and
May 2007.
CIA. ENERGETICA: Five Companies Will Bid for Controlling Stake
--------------------------------------------------------------
Five firms have registered for the auction of a controlling
stake in state-run Companhia Energetica de Sao Paulo, Business
News Americas reports, citing a government spokesperson.
The auction will be held on March 26.
The spokesperson told BNamericas that the five bidders are:
-- Tractebel Energia,
-- Alcoa,
-- Neoenergia,
-- CPFL Energia, and
-- Energias do Brasil.
Interested parties who failed to register can still compete in
the auction by partnering with one of the five registered firms,
BNamericas says, citing the spokesperson.
The Sao Paulo government will disclose the auction's short list
on March 14, BNamericas states.
Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao
Paulo (BOVESPA: CESP3, CESP5 and CESP6) is the country's third
largest power generator, majority owned by the State of Sao
Paulo. CESP operates 6 hydroelectric plants with total
installed capacity of 7,456 MW and reported net revenues of
BRL1,983 million in the last twelve months through Sept. 30,
2006.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 10, 2007, Standard & Poor's Ratings Services raised its
ratings on electricity generator Companhia Energetica de Sao
Paulo, including its corporate credit rating to 'B' from 'B-'.
At the same time, S&P raised its Brazil national scale ratings
on CESP to 'brBBB-' from 'brBB'. S&P said the outlook remains
positive on both scales.
COMPANHIA ENERGETICA: To Bid for Jirau Plant With Madeira Group
---------------------------------------------------------------
Companhia Energetica de Minas Gerais' President Djalma Bastos de
Moraes said in a webcast that the company will compete for the
3.3-gigawatt Jirau hydro plant on May 9 with the Madeira Energia
consortium, Business News Americas reports.
According to BNamericas, Companhia Energetica has a 10% share of
the Madeira Energia consortium.
BNamericas relates that the Jirau hydro plant will be built in
the Amazon's Madeira river. Mr. de Moraes commented to
BNamericas, "We believe the Amazon region is the new power
generation frontier. It is impossible to stay out of the
Amazon."
Companhia Energetica said that it wants to have 25% market share
for Brazilian generation, which has 100-gigawatt capacity. The
company has 6.7 gigawatts of capacity.
Future hydro resources is in the Amazon, which is "more than 60%
of the total," and projects there add value to the firm despite
low energy prices, Mr. de Moraes told BNamericas.
Companhia Energetica de Minas Gerais aka Cemig --
http://www.cemig.com.br/-- is one of the largest and most
important electric energy utilities in Brazil due to its
strategic location, its technical expertise and its market.
Cemig's concession area extends throughout nearly 96.7% of the
State of Minas Gerais, Brazil. Cemig owns and operates 52 power
plants, of which six are in partnership with private
enterprises, relying on a predominantly hydroelectric energy
matrix. Electric energy is produced to supply more than 17
million people living in the state's 774 municipalities. In
addition to those 52 plants, another three are currently under
construction.
Cemig is also active in several other states, through ventures
for the generation or the commercialization of energy in these
Brazilian states: in Santa Catarina (generation), Rio de Janeiro
(commercialization and generation), Espirito Santo (generation)
and Rio Grande do Sul (commercialization).
* * *
As reported on March 8, 2007, Moody's Investors Service assigned
corporate family ratings of Ba2 on its global scale and Aa3.br
on its Brazilian national scale to Companhia Energetica de Minas
Gerais aka CEMIG. The rating action triggered the upgrade of
CEMIG's outstanding debentures due in 2009 and 2011, and of the
BRL250 million 2014 senior unsecured guaranteed debentures of
its wholly owned subsidiary, Cemig Distribuicao S.A. to Ba2 from
B1 on the global scale and to Aa3.br from Baa2.br on the
Brazilian national scale, concluding the review process
initiated on Aug. 8, 2006.
COMPANHIA SIDERURGICA: Buys Insurance Abroad for US$9.5B Assets
---------------------------------------------------------------
Companhia Siderurgica Nacional has purchased insurance abroad
covering an estimated US$9.5 billion in assets and paying up to
US$750 million per claim, a source told Brazilian financial
daily Valor Economico.
Valor Economico relates that due to the size of the policy, all
the risk had to be placed with reinsurance firms. Federal
reinsurer IRB-Brasil Re refused to provide coverage, so
Companhia Siderurgica purchased insurance abroad.
A lawyer involved in the IRB-Brasil transaction told Valor
Economico that the company was forced to accept the risk because
it doesn't lose its monopoly until April 2008.
IRB-Brasil wasn't obliged to accept all risks even in the past,
when all reinsurance contracts had to go through the company
first, Business News Americas reports, citing sources.
Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets, tin
mill products and tinplate. The company also runs its own iron
ore, manganese, limestone and dolomite mines and has strategic
investments in railroad companies and power supply projects.
The group also operates in Brazil, Portugal and the U.S.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2007, Standard & Poor's Ratings Services revised its
outlook on Brazil-based steel maker Companhia Siderurgica
Nacional and related entity National Steel S.A. to positive from
stable. At the same time, Standard & Poor's affirmed its 'BB'
corporate credit rating on CSN and its 'B+' rating on NatSteel.
COMPANHIA SIDERURGICA: Iron Ore Sales to Bring US$2.0B Revenues
---------------------------------------------------------------
Companhia Siderurgica Nacional's Executive Mining Director
Juarez Saliba told reporters that the company expects 2008 iron
ore sales to bring in revenues of some US$2.0 billion.
Business News Americas relates that Mr. Saliba said in a
conference call that the forecast excludes the iron ore to be
used in Companhia Siderurgica's steel mill in Volta Redonda, Rio
de Janeiro.
Companhia Siderurgica's will be able to sell up to 29 million
tons of iron ore this year. Up to 8.5 million tons of the
steel-making input will be shipped from Casa de Pedra to
Companhia Siderurgica's Vota Redonda mill, BNamericas notes.
"This will be the first year of the ladder, and we believe that
next year will be better than this one," Mr. Saliba commented to
BNamericas.
Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets, tin
mill products and tinplate. The company also runs its own iron
ore, manganese, limestone and dolomite mines and has strategic
investments in railroad companies and power supply projects.
The group also operates in Brazil, Portugal and the U.S.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2007, Standard & Poor's Ratings Services revised its
outlook on Brazil-based steel maker Companhia Siderurgica
Nacional and related entity National Steel S.A. to positive from
stable. At the same time, Standard & Poor's affirmed its 'BB'
corporate credit rating on CSN and its 'B+' rating on NatSteel.
COMPANHIA SIDERURGICA: To Increase Product Prices on March 18
-------------------------------------------------------------
Companhia Siderurgica Nacional's Commercial Director Luis
Fernando Martinez told reporters that the company expects
consolidated steel sales of up to 5.5 million tons this year.
Business News Americas relates that shipments in 2007 totaled
5.4 million tons.
Mr. Martinez told BNamericas that due to higher prices for
inputs like iron ore and coal and increased freight costs,
Companhia Siderurgica will raise the price of its products as of
March 18 "in all markets." Coal prices will increase 100% this
year.
The price of Companhia Siderurgica's hot-rolled products will
increase 13.5%, while the price of cold-rolled products will
rise 8.5% and galvanized rolled products 3.5%, BNamericas says,
citing Mr. Martinez.
Mr. Martinez told BNamericas that Companhia Siderurgica could
implement another increase in its for hot-rolled products'
prices in the second half of May or in early June for hot-rolled
products.
"For the others, such as cold-rolled and galvanized rolled
products, CSN [Companhia Siderurgica] will evaluate how the
market is behaving and the level of imports," Mr. Martinez
commented to BNamericas.
Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. -- http://www.csn.com.br/-- produces, sells, exports and
distributes steel products, like hot-dip galvanized sheets, tin
mill products and tinplate. The company also runs its own iron
ore, manganese, limestone and dolomite mines and has strategic
investments in railroad companies and power supply projects.
The group also operates in Brazil, Portugal and the U.S.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 27, 2007, Standard & Poor's Ratings Services revised its
outlook on Brazil-based steel maker Companhia Siderurgica
Nacional and related entity National Steel S.A. to positive from
stable. At the same time, Standard & Poor's affirmed its 'BB'
corporate credit rating on CSN and its 'B+' rating on NatSteel.
ENERGIAS DO BRASIL: Registers as Bidder for Companhia Energetica
----------------------------------------------------------------
Energias do Brasil has registered as a bidder in the March 26
auction of a controlling stake in state-run Companhia Energetica
de Sao Paulo, Business News Americas reports, citing a
government spokesperson.
As reported in the Troubled Company Reporter-Latin America on
March 3, 2008, Energias do Brasil's President Antonio Pita de
Abreu said that the company wants to join a consortium to bid
for Companhia Energetica because the company is too big a
company for one single player to purchase.
The spokesperson told BNamericas there are four other bidders in
the auction:
-- Tractebel Energia,
-- Alcoa,
-- Neoenergia, and
-- CPFL Energia.
Interested parties who failed to register can still compete in
the auction by partnering with one of the five registered firms,
BNamericas says, citing the spokesperson.
The Sao Paulo government will disclose the auction's short list
on March 14, BNamericas states.
About Companhia Energetica
Headquartered in Sao Paulo, Brazil, Companhia Energetica de Sao
Paulo (BOVESPA: CESP3, CESP5 and CESP6) is the country's third
largest power generator, majority owned by the State of Sao
Paulo. CESP operates 6 hydroelectric plants with total
installed capacity of 7,456 MW and reported net revenues of
BRL1,983 million in the last twelve months through Sept. 30,
2006.
About Energias do Brasil
Energias do Brasil S.A. is an integrated utility group
controlled by Energias de Portugal, with activities in
generation, distribution and commercialization of electricity.
Its power distribution subsdiaries Bandeirante, Escelsa and
Enersul represent altogether some 64% of consolidated total
assets, while the power generation assets represent some 31%.
* * *
In May 2007, Moody's Investors Service placed a Ba2 long-term
corporate family rating on Energias do Brasil.
FURNAS CENTRAIS: Won't Bid for Control of Companhia Energetica
--------------------------------------------------------------
Furnas Centrais Eletricas S.A. won't compete in the auction to
acquire control of Companhia Energetica de Sao Paulo. Business
News Americas relates that a controlling stake in Companhia
Energetica will be auctioned on March 26, 2008.
Furnas Centrais told BNamericas that it won't participate in the
auction due do uncertainties regarding the concession renewal of
Companhia Energetica's hydro plants and the difficulty of
evaluating in the short term the firm's investment needs to
maintain its generation assets.
Headquartered in Rio de Janeiro, Furnas Centrais Eletricas S.A.
is one of Brazil's largest electricity generation and
transmission utility companies. Furnas Centrais is closely
held, with 99.5% of its shares owned by Eletrobras, the
Brazilian Federal Government's holding company that controls
about 39% of the country's installed power generation capacity
and approximately 56% of high voltage energy transmission
countrywide. Furnas Centrais operates 10 hydro-power plants
representing some 92% of its total installed capacity of 9,458
megawatts (8% is represented by 2 thermal power plants). The
company also owns about 19,278 kilometers of transmission lines,
mainly in the southeast and mid-west regions of Brazil. These
assets include the transmission line connecting the Itaipu power
plant, which supplies energy consumption to the most
industrialized region of the country. Furnas is also
responsible for trading the nuclear energy generated by
Eletronuclear (99.8% Eletrobras), which represents about 23% of
energy sales volume. In 2006, Furnas reported net earnings of
BRL364 million (about US$165 million) on BRL5,325 million
(US$2,416 million) net revenues.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 20, 2007, Moody's America Latina Ltda. affirmed its Ba1
global local currency issuer rating for Furnas Centrais
Eletricas S.A.
LAZARD LTD: Brendan Dyson Leads Corporate Finance Advisory Group
----------------------------------------------------------------
Brendan Dyson has joined the Lazard Ltd. as a Managing Director
in its Corporate Finance Advisory group. Mr. Dyson was recently
Managing Director and Convertible Securities Group Head at Piper
Jaffray. Based in San Francisco, he will lead a new convertible
securities advisory team, enhancing the firm's current Corporate
Finance Advisory business.
"Brendan is a top-tier convertible securities professional, who
has built his 25-year career on providing quality service and
advice to clients on complex refinancing and corporate finance,"
said Lazard North America Chief Executive Officer, Kenneth
Jacobs. "He and his team will support our existing Corporate
Finance Advisory business, and bolster our efforts on the West
Coast."
While at Piper Jaffray from 2002 until 2007, Mr. Dyson led the
convertible origination, advisory and sales and trading
practice. Prior to joining Piper Jaffray, he was a Managing
Director with Robertson Stephens for ten years, where he founded
and built its convertible securities desk.
Lazard's Corporate Finance Advisory group provides advice to
corporations with respect to all forms of public and private
equity, and equity-linked financings.
Lazard Ltd. (NYSE:LAZ) -- http://www.lazard.com/-- is a
preeminent financial advisory and asset management firms, that
operates from 32 cities across 16 countries in North America,
Europe, Asia, Australia and South America. With origins dating
back to 1848, the firm provides advice on mergers and
acquisitions, restructuring and capital raising, well as asset
management services to corporations, partnerships, institutions,
governments, and individuals. The company has locations in
Australia, Brazil, China, France, Germany, India, Japan, Korea
and Singapore.
* * *
The company's consolidated balance sheet at Sept. 30, 2007,
showed US$3.51 billion in total assets, US$3.54 billion in total
liabilities, and US$49.0 million minority interest, resulting in
a US$74.5 million total shareholders' deficiency.
TAM SA: Reports 67.3% International Market Share in February
------------------------------------------------------------
TAM SA reported operating data for February 2008, as disclosed
by the Brazilian National Civil Aviation Agency on March 11,
2008.
According to the Brazilian aviation agency, the company
registered 21.8% growth in domestic RPK (demand) compared to the
same period last year, and 17.2% increase in domestic ASK
(supply). In February, market demand increased 12.9% and market
supply increased 15.8%. TAM registered domestic market share
(RPK) of 50.6%, a 3.7 p.p. increase compared to the same period
in 2007. TAM's domestic load factor was 70.5%, 4.4 p.p. higher
than the market average of 66.1%.
In the international market, TAM registered 65.2% growth in RPK
and 55.1% in ASK, compared to February 2007. The company
attained market share of 67.3%, representing 6.2 p.p. growth
year on year. TAM attained a 73.9% load factor, 8.2 p.p. higher
than the market average of 65.7%.
TAM currently -- http://www.tam.com.br/-- has business
agreements with the regional airlines Pantanal, Passaredo,
Total and Trip. As of Jan. 14, the daily flight on the Corumba
-- Campo Grande route in Mato Grosso do Sul began to be operated
by a partnership with Trip. With the expansion of the agreement
with NHT, TAM will now be serving 82 destinations in Brazil, 45
of which with its own flights. In addition, the company is
strengthening its presence in Rio Grande do Sul and Santa
Catarina.
* * *
On July 23, 2007, Fitch Ratings affirmed the 'BB' foreign
currency and local currency Issuer Default Ratings of TAM S.A.
Fitch has also affirmed the 'BB' rating of its US$300 million of
senior unsecured notes due 2017 as well as the company's
'A+(bra)' national scale rating and for its first debentures
issuance (BRL500 million). Fitch said the rating outlook is
stable.
* BRAZIL: Structured Finance Ratings Remain Stable, S&P Says
------------------------------------------------------------
If Brazil's economic conditions remain favorable, Standard &
Poor's Ratings Services expects structured finance issuance to
exceed the volumes reported in 2007. The continuous expansion
of corporate and consumer credit asset portfolios and a local
equity market that is not able to provide an alternative source
of stable funding during 2008 will contribute to increased
issuance.
After a drop in issuance levels during the second half of 2007,
and despite the global economic slowdown, Brazil's structured
finance market is regaining momentum, with a significant number
of new domestic and also some cross-border transactions expected
to come to market in the first half of 2008, as indicated by
traditional and new originators' current activity. In addition,
domestic investors' appetite for Brazilian securitizations
remains strong because these instruments continue to offer
portfolio risk diversification and attractive yields.
Brazilian structured finance issuance may have dropped in the
second half of 2007, but rather than being victims of the global
slowdown, Brazilian originators, mostly midsize banks, had ample
access to liquidity, in such forms as equity and unsecured or
subordinated debt, amid very liquid capital markets. The total
amount of domestic structured finance transactions dropped by
about 20% in 2007 compared to 2006.
In addition, S&P expects some activity in cross-border markets,
mostly related to the securitization of the future cash flows of
diversified payment right (DPRs) that large Brazilian banks have
originated. Expanding credit portfolios and originators'
increasing funding demands will benefit Brazil's structured
finance market. Therefore, S&P expects that the global
uncertainties in the financial markets will continue to have
only a limited effect on Brazil's local structured finance
market.
Bank Credit Operation Expansion and
DPR Financing Benefit Structured Issuance
While the origination of credit operations continues to expand
in Brazil, the number of securitizations is not as robust,
mostly because large retail banks have so far not accessed the
securitization market. The outstanding balance of personal
loans to individuals increased 33% in 2007, totaling BRL313.6
billion at December 2007, according to data from Brazil's
Central Bank. The amount excludes such earmarked credit lines
as those originated by development banks/agencies, credit
unions, and the mandatory assignment of savings deposits in
housing financing), compared with a total volume of about BRL30
billion, according to data from the Brazilian Securities and
Exchange Commission (CVM). The amount includes all asset class
types—not only personal loans for Fundo de Investimentos em
Direitos Creditorios (FIDCs or credit receivables funds).
However, continuously declining benchmark interest rates and
credit operation expansion from large retail banks should
stimulate some securitization activity, including in personal
and corporate loans, in 2008.
For cross-border export future flow issuance, S&P expects that
issuers won't need to securitize due to the high commodity price
levels and the available liquidity through traditional
financing. Therefore, S&P does not expect any new export future
flow transactions to enter the market in 2008. S&P also expects
Brazilian banks to continue their opportunistic issuances of DPR
financial future flow transactions through at least the first
half of 2008. Brazilian banks stopped securitizing DPRs in 2005
but started up again in the second half of 2007. DPR financing
proceeds could fulfill the banks' domestic funding requirements.
Structures and Asset Classes Continue To Evolve
The Brazilian securitization market has traditionally been
unique, as demonstrated by its asset class diversification and
the singularity of its instruments and vehicles, including
FIDCs, real estate receivables certificates, despite an
underdeveloped mortgage-backed securities (MBS) market. While
traditional asset classes (personal loans, auto loans, and trade
receivables) should continue to dominate new transactions, S&P
expects some activity in other assets, including nonperforming
and agricultural assets.
S&P believes there are strong fundamentals currently present in
the local market -- economic stability, increasing income
levels, an enormous housing deficit, and a legal framework
governing mortgages and MBS that has presented favorable
precedents to date -- that should fuel the development of
mortgage-backed securitizations over the next few years. In
most areas outside Brazil, securitization has been banks' major
alternative funding source for developing successful housing
systems. The current strong pace of mortgage portfolio growth
in Brazil indicates that Brazil should follow the same path in
the future.
Most of the transactions in the local market have only one or
two tranches. However, S&P expects originators to start
dividing their issuances into more tranches to meet investors'
increasing appetite for various levels of risk and yield. Also,
credit tranching can be more cost efficient for originators,
since they won't have to hold on to as many of the subordinated
shares.
Structured Finance Ratings Performance Will Remain Stable
S&P expects rating on Brazilian structured finance transactions
to remain stable throughout 2008, reflecting Brazil's solid
economic fundamentals, relatively low interest rate volatility,
and other economic indicators. Nonetheless, Brazil's
significant credit operation expansion in the past few years has
introduced new consumers to the credit market, due to cheaper
interest rates and the availability of longer-term loans.
Therefore, the future performance of Brazilian asset-backed
securities (ABS) will be highly linked to the stability of
income levels, employment rates, and the local economy.
A less favorable economic environment that affects consumers'
ability to access credit and pay off their loans could hinder
the performance of existing ABS transactions. In addition,
borrowers' origination and risk analysis capabilities will
continue to be a key factor in S&P's credit risk and
surveillance analysis.
S&P will continue to closely monitor all outstanding ratings on
Brazilian structured finance transactions and adjust its loss
expectations for new issuances as appropriate, given historical
and expected economic, market, and performance conditions.
==========================
C A Y M A N I S L A N D S
==========================
AMA INVESTMENT: Sets Final Shareholders' Meeting for March 19
-------------------------------------------------------------
AMA Investment Ltd. will hold its final shareholders' meeting on
March 19, 2008, at 10:00 a.m. at the company's registered
office.
These matters will be taken up during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidator to retain the records
of the company for a period of six years from
the dissolution of the company, after which they
may be destroyed.
AMA Investment's shareholders agreed on Jan. 29, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Lawrence Edwards
Attn: Jodi Jones
P.O. Box 258, Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 914 8694
Fax: (345) 945 4237
CONOCOPHILLIPS MEA: Proofs of Claim Filing Is Until March 18
------------------------------------------------------------
Conocophillips Mea Ltd.'s creditors have until March 18, 2008,
to prove their claims to Trident Liquidators (Cayman) Ltd., the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Conocophillips Mea's shareholder decided on Jan. 24, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Trident Liquidators (Cayman) Ltd.
Attn: Philip Sutcliffe
P.O. Box 847, Grand Cayman
Cayman Islands
Telephone: (345) 949 0880
Fax: (345) 949 0881
ESPRIT GENERAL: Proofs of Claim Filing Deadline Is March 18
-----------------------------------------------------------
Esprit General Partner's creditors have until March 18, 2008,
to prove their claims to Connan Hill and Alex Johnston, the
company's liquidators, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Esprit General's shareholder decided on Jan. 29, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidators can be reached at:
Connan Hill and Alex Johnston
Attn: Isabel Mason
P.O. Box 1109, Grand Cayman KY1-1102
Cayman Islands
Telephone: 345 949-7755
Fax: 345 949-7634
JANUS GLOBAL: Sets Final Shareholders' Meeting for March 19
-----------------------------------------------------------
Janus Global Funds SPC will hold its final shareholders' meeting
on March 19, 2008, at 10:00 a.m. at the company's registered
office.
These matters will be taken up during the meeting:
1) accounting of the winding-up process; and
2) authorizing the liquidator to retain the records
of the company for a period of six years from
the dissolution of the company, after which they
may be destroyed.
Janus Global's shareholders agreed on Feb. 7, 2008, to place
the company into voluntary liquidation under The Companies Law
(2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Lawrence Edwards
Attn: Miguel Brown
P.O. Box 258, Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 914 8665
Fax: (345) 945 4237
LODESTONE COMPANY: Proofs of Claim Filing Is Until March 19
-----------------------------------------------------------
Lodestone Company Holdings' creditors have until March 19, 2008,
to prove their claims to Griffin Management Limited, the
company's liquidator, or be excluded from receiving any
distribution or payment.
In their proofs of claim, creditors must indicate their full
names, addresses, the full particulars of their debts or claims,
and the names and addresses of their lawyers, if any.
Lodestone Company's shareholders agreed on Jan. 8, 2008, to
place the company into voluntary liquidation under The Companies
Law (2004 Revision) of the Cayman Islands.
The liquidator can be reached at:
Griffin Management Limited
Attn: Janeen Aljadir
Caledonian Trust (Cayman) Limited
Caledonian House, 69 Dr. Roy's Drive
P.O. Box 1043, Grand Cayman KY1-1102
Cayman Islands
Telephone: (345) 914-4943
Fax: (345) 814-4859
SCOTTISH RE: Moody's Junks Preferred Stock Debt Rating
------------------------------------------------------
Moody's Investors Service has downgraded the preferred stock
debt rating of Scottish Re Group Limited (Scottish Re; NYSE:
SCT) to Caa3 from B2, and the insurance financial strength (IFS)
ratings of the company's core insurance subsidiaries, Scottish
Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re
(U.S.), Inc., were lowered to Ba3 from Baa3. The ratings were
left on review for possible further downgrade, continuing a
review that had been initiated on February 15, 2008.
Moody's noted that the rating action follows a February 22, 2008
announcement by the company that it would alter its strategic
focus in response to business challenges it faces in writing new
business, partly as a result of market conditions and its
substantial exposure to subprime and Alt-A investments. Going
forward, the company has indicated it will pursue dispositions
of certain non-core businesses, strategic alliances in North
America, and rationalize expenses to secure liquidity and
capital as it effectively runs off the existing business.
The rating agency commented that the company's significant
exposure to subprime and Alt-A investments could lead to
additional losses going forward. According to Scott Robinson,
Moody's Vice President & Senior Credit Officer, "The magnitude
of the company's subprime and Alt-A exposure, especially to
recent year vintages, makes them susceptible to further losses,
especially in a severe downside scenario."
As of the end of the third quarter, Scottish Re had
approximately US$3.0 billion of subprime ABS and Alt-A holdings,
which represented 27% of its total investment portfolio.
Moody's notes that although much of the subprime ABS and Alt-A
exposure (US$2.3 billion) resides in non-recourse securitization
vehicles the company has sponsored, impairments and unrecognized
losses could adversely impact the ability of the company's U.S.
operating subsidiary to receive regulatory reserve credit, hence
reducing its regulatory capital position.
According to Robinson, "Moody's review of the ratings will focus
on the company's capital and liquidity position as it adjusts to
its new strategy." While the company has access to
approximately US$275 million in a contingent capital facility,
it does face a number of significant challenges. Robinson
added," the need for capital in its regulated subsidiaries, as
well as additional impairments on its investments could all
place additional pressure on the company."
These ratings were downgraded and left on review for possible
further downgrade:
Scottish Re Group Limited:
-- Senior unsecured shelf to (P)Caa1 from (P)Ba3;
-- subordinate shelf to (P)Caa2 from (P)B1;
-- junior subordinate shelf to (P)Caa2 from (P)B1;
-- preferred stock to Caa3 from B2; and
-- preferred stock shelf to (P)Caa3 from (P)B2;
Scottish Holdings Statutory Trust II:
-- preferred stock shelf to (P)Caa2 from (P)B1
Scottish Holdings Statutory Trust III:
-- preferred stock shelf of to (P)Caa2 from (P)B1
Scottish Annuity & Life Insurance Company (Cayman) Ltd.:
-- IFS rating to Ba3 from Baa3
Premium Asset Trust Series 2004-4:
-- senior secured debt to Ba3 from Baa3
Scottish Re (U.S.), Inc.:
-- IFS rating to Ba3 from Baa3
Stingray Pass-Through Certificates:
-- to Ba3 from Baa3 (based on IFS rating of SALIC)
On February 15, 2008, Moody's placed the ratings of Scottish Re
Group Limited on review for downgrade. The review was driven
primarily by adverse experience on the company's substantial
exposure to subprime and Alt-A investments.
Scottish Re Group Limited is a Cayman Islands company with
principal executive offices located in Bermuda. On Sept. 30,
2007, Scottish Re reported total assets of US$13.4 billion and
shareholder's equity of US$869 million.
===============
C O L O M B I A
===============
BANCOLOMBIA: Deutsche Bank Hikes Net Income Estimate by 8%
----------------------------------------------------------
Deutsche Bank told Business News Americas that it increased by
8% its 2008 net income estimate for Bancolombia to COP1.25
trillion with 15% return on equity to indicate faster fee income
growth and lower expenses offset by higher provisions.
Bancolombia said earlier this week it had increased earnings by
31% to COP1.09 trillion in 2007, compared to 2006, BNamericas
notes.
Deutsche Bank told BNamericas that the 2007 earnings were better
than expected due to high forex gains. Deutsche Bank said in a
report that its 2009 net income estimate for Bancolombia is
COP1.44 trillion -- equivalent to 22.2% return on equity.
Deutsche Bank told BNamericas that it was keeping its US$40 per
American Depositary Receipt price target for Bancolombia
reflecting its new estimates and its hold rating on the stock.
"The main downside risk is lower earnings due to higher reserve
requirements, while the main upside risk is better-than-expected
synergies with El Salvador's Banagricola, Bancolombia purchased
last year," Deutsche Bank said in a report.
Bancolombia is Colombia's largest full-service financial
institution, formed by a merger of three leading Colombian
financial institutions. Bancolombia's market capitalization is
over US$5.5 billion, with US$13.8 billion asset base and US$1.4
billion in shareholders' equity as of Sept. 30, 2006.
Bancolombia is the only Colombian company with an ADR level III
program in the New York Stock Exchange.
* * *
As reported in the Troubled Company Reporter-Latin America on
June 27, 2007, Moody's Investors Service changed the outlook to
positive from stable on its Ba3 long-term foreign currency
deposit ratings and Ba1 long-term foreign currency subordinated
bond rating for Bancolombia, S.A.
==================
C O S T A R I C A
==================
ALCATEL-LUCENT SA: Acquiring ReachView Technologies
---------------------------------------------------
Alcatel-Lucent SA has signed an agreement to acquire ReachView
Technologies.
Upon completion, this acquisition will enhance Alcatel-Lucent's
current professional services consulting practice, specifically,
OSS/BSS and software integration, enabling the company to
deliver advanced service assurance solutions to carriers and
industry and public sector customers.
"Communications service providers are looking for advanced
services assurance solutions, and by acquiring ReachView,
Alcatel-Lucent will be able to more quickly meet that need,"
said Andy Williams, President of Alcatel-Lucent's Services
business. "The skills of ReachView complement our own service
assurance competence centers. Together we will be able to offer
carriers the premier consulting and integration expertise they
are looking for, no matter where they are located."
"Carriers and large enterprises have complex networking,
services and business challenges, and they are looking for a
partner that can help them with their operations requirements
ReachView is excited to be joining Alcatel-Lucent to offer
customers our expertise in delivering quality of service and
service assurance solutions," said Ian Bresnahan, ReachView's
Chief Executive Officer. "Our combined skills, knowledge,
network expertise and access to multi-vendor labs, will give us
a competitive advantage in taking on very large and complex
transformation projects."
With approximately 85 employees, ReachView Technologies has
offices in Atlanta and Dallas. Bresnahan and the two other
principle partners, Todd Cochran and Josh Shipman, of ReachView
will continue with Alcatel-Lucent after the acquisition.
Alcatel-Lucent's service assurance solution provides tools to
ensure that end-user services provided by a carrier or
enterprise are continuously available and performing to service
level agreements and quality of service performance levels. The
tools monitor performance, availability and quality of
experience, detect possible failures while at the same time
assess services and impact on the user experience.
Alcatel-Lucent with ReachView will be able to provide a total
consulting practice that will help operators isolate, prioritize
and resolve network & server issues faster, through root cause
isolation and resolution management. These solutions are
tailored to match each operator's operational and business
process environment. Integrating a solution into an operator's
network, taking into consideration existing systems, service
definitions and adapting to the carrier's processes is a unique
competency of the combined companies.
The closing, which is subject to the satisfaction of certain
conditions, is expected to be April 1, 2008. The financial terms
of the agreement are not being disclosed.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.
* * *
As reported in the TCR-Europe Nov. 9, 2007, Moody's Investors
Service downgraded to Ba3 from Ba2 the Corporate Family Rating
of Alcatel-Lucent. The ratings for senior debt of the group
were equally lowered to Ba3 from Ba2 and the trust preferred
notes of Lucent Technologies Capital Trust I have been
downgraded to B2 from B1. At the same time, Moody's affirmed
its Not-Prime rating for short-term debt of Alcatel-Lucent.
Moody's said the outlook for the ratings is stable.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
ALCATEL-LUCENT SA: SanDisk Pursues Declaratory Suit vs Firm
-----------------------------------------------------------
SanDisk Corp. is pursuing an action seeking a declaratory
judgment of non-infringement and the invalidity of
Alcatel-Lucent SA's U.S. Patent Nos. 5,341,457 and RE39,080 in
the U.S. District Court for the Northern District of California.
Both patents relate to a technique for perceptual coding of
audio signals.
According to SanDisk, on May 11, 2007, it received notice from
Alcatel-Lucent alleging that its digital music players require a
license to the '457 and '080 patents.
SanDisk sued Lucent Technologies Inc. and Alcatel-Lucent on July
13, 2007, seeking declaratory judgment that it did not infringe
the two patents and that these patents are invalid.
Lucent and Alcatel-Lucent answered the SanDisk suit and
counterclaimed for infringement of the '080 patent. The two
companies also moved to dismiss the case without prejudice or
stay the case pending an appeal of a judgment involving the same
patent in the U.S. District Court for the Southern District of
California.
SanDisk has moved for summary judgment on its claims for
declaratory relief and for the dismissal of Lucent's patent
infringement counterclaim.
About Sandisk Corp.
Based in Milpitas, Calif., SanDisk Corp. designs, develops,
markets and manufactures products and solutions in a variety of
form factors using its flash memory, controller and firmware
technologies.
About Alcatel-Lucent
Headquartered in Paris, France, Alcatel-Lucent S.A. --
http://www.alcatel-lucent.com/-- provides solutions that enable
service providers, enterprises and governments worldwide to
deliver voice, data and video communication services to end
users.
Alcatel-Lucent maintains operations in 130 countries, including,
Austria, Germany, Hungary, Italy, Netherlands, Ireland, Canada,
United States, Costa Rica, Dominican Republic, El Salvador,
Guatemala, Peru, Venezuela, Indonesia, Australia, Brunei and
Cambodia.
* * *
As reported in the TCR-Europe Nov. 9, 2007, Moody's Investors
Service downgraded to Ba3 from Ba2 the Corporate Family Rating
of Alcatel-Lucent. The ratings for senior debt of the group
were equally lowered to Ba3 from Ba2 and the trust preferred
notes of Lucent Technologies Capital Trust I have been
downgraded to B2 from B1. At the same time, Moody's affirmed
its Not-Prime rating for short-term debt of Alcatel-Lucent.
Moody's said the outlook for the ratings is stable.
Alcatel-Lucent's Long-Term Corporate Credit rating and Senior
Unsecured Debt carry Standard & Poor's Ratings Services' BB
rating. Its Short-Term Corporate Credit rating stands at B.
===================================
D O M I N I C A N R E P U B L I C
===================================
BASIC ENERGY: S&P Lifts Corporate Credit Rating to 'BB-'
--------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on
oilfield services company Basic Energy Services Inc., including
the corporate credit rating to 'BB-' from 'B+'. The senior
unsecured rating on the company was raised to 'B+' from 'B', and
the rating on its senior secured $225 million revolving credit
facility was raised to 'BB+' from 'BB'. The recovery rating on
Basic Energy's revolving credit facility remains unchanged at
'1', reflecting S&P's expectation of very high (90% to 100%)
recovery in the event of a payment default. The outlook is
stable.
"The upgrade reflects the company's strengthened business risk
profile, achieved through an expanded scale of operations and an
enhanced portfolio of products and services," said Standard &
Poor's credit analyst Jeffrey B. Morrison. "The rating action
also incorporates management's adherence to relatively moderate
debt in funding its growth initiatives."
As of Dec. 31, 2007, Midland, Texas-based Basic Energy had
$436 million in total debt, after adjusting for capital and
operating lease obligations.
The ratings on Basic Energy reflect its status as a small,
though growing, competitor in historically cyclical U.S.
Oilfield services markets, and its acquisitive growth strategy.
Somewhat offsetting concerns are an improving competitive
position within several domestic basins, an expanding suite of
products and services, and a consistent track record of free
cash flow generation when excluding acquisition outlays.
Headquartered in Texas, USA, Basic Energy Services, Inc.,
provides a range of well site services to oil and gas drilling
and producing companies, including well servicing, fluid
services, drilling and completion services, and well site
construction services. Basic Energy has four segments: well
servicing encompasses a range of services performed with a
mobile well servicing rig; fluid services provides transport,
store and dispose of a variety of fluids; drilling and
completion services provides oil and gas operators with a
package of services, and well site construction services employs
an array of equipment and assets to provide services for the
construction and maintenance of oil and gas production
infrastructure. In March 2007, it acquired JetStar Consolidated
Holdings, Inc.
In the Dominican Republic, Basic Energy controls power companies
Cepm, Cespm and Ege Haina.
As reported on May 1, 2007, Basic Energy head Rolando Gonzalez
Bunster told Business News Americas that the company and its
Dominican Republic affiliates will construct a 35-megawatt
thermo plant in Haiti.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 30, 2007, Standard & Poor's Ratings Services affirmed its
'B+' corporate credit rating on domestic oilfield services
provider Basic Energy Services Inc. At the same time, Standard
& Poor's assigned its 'BB' debt rating and '1' recovery rating
to the company's proposed US$225 million revolving credit
facility. S&P said the outlook remained positive.
=============
E C U A D O R
=============
PETROECUADOR: Seeks Contractors to Develop Amazon Fields
--------------------------------------------------------
Petroecuador wants contractors in the private sector to develop
four fields in the Amazon basin, the Financial Times reports.
The Financial Times relates that Petroecuador has abandoned
plans to involve Asian and Latin American government-controlled
companies in the projects for four fields:
-- Auca,
-- Lago Agrio,
-- Libertador, and
-- Shushufindi.
Fernando Zurita, the navy admiral at the helm of Petroecuador,
told the Financial Times that Ecuador's President Rafael Correa
had said he wanted to enlist the likes of China's Sinopec and
Indonesia's Pertamina in the fields. The idea was dropped after
a lengthy meeting with Petroecuador officials in January 2008.
According to the Financial Times, the tender for the fields will
be launched by the end of the first quarter, after the
completion of environmental reviews and production estimates.
Petroecuador expects winning bidders to invest US$1 billion in
the fields over the next three years, the report says.
Mr. Zurita commented to reporters, "There are three companies in
the market that can do what we want," including Franco-American
group Schlumberger, and Halliburton and Baker Hughes of the U.S.
Headquartered in Quito, Ecuador, Petroecuador --
http://www.petroecuador.com.ec-- is an international oil
company owned by the Ecuador government. It produces crude
petroleum and natural gas.
* * *
In previous years, Petroecuador, according to published reports,
was faced with cash-problems. The state-oil firm has no funds
for maintenance, has no funds to repair pumps in diesel,
gasoline and natural gas refineries, and has no capacity to pay
suppliers and vendors. The government refused to give the much-
needed cash alleging inefficiency and non-transparency in
Petroecuador's dealings. In 2008, a new management team was
appointed to turn around the company's operations.
=================
G U A T E M A L A
=================
SOLERA HOLDINGS: Appoints Jason Brady as Global Legal Counsel
-------------------------------------------------------------
Solera Holdings, Inc. has appointed Jason Brady as Senior Vice
President and General Counsel, responsible for the company's
global legal organization, including corporate compliance and
governance and mergers and acquisitions.
Mr. Brady has more than 12 years of relevant law experience, and
in past positions has been responsible for Securities and
Exchange Commission reporting and compliance, corporate
transactions, corporate governance, litigation, commercial
collaborations, intellectual property matters and employment
matters.
He previously served as Vice President, General Counsel and
Corporate Secretary at Xenogen Corporation, a publicly traded
biotechnology company that was sold to Caliper Life Sciences,
Inc. Prior to that, Mr. Brady held senior legal positions with
Abbott Diabetes Care, TheraSense, Inc., Ensera, Inc. and
AllAdvantage. At Ensera, he gained valuable insight into the
software and services segment of the automobile insurance claims
processing industry, working closely with Solera's founder,
chairperson and chief executive officer, Tony Aquila, to build
the business as a member of Ensera's senior management team.
Mr. Brady started his career at the law firm of Wilson Sonsini
Goodrich & Rosati in Palo Alto, California.
"I am looking forward to working with Jason Brady again as his
legal counsel was instrumental at Ensera," said Mr. Aquila.
"With Solera's May 2007 IPO and NYSE listing, and international
business presence, the legal function remains critical to our
success worldwide. Jason has a strong track record of
achievement, and I intend to leverage his skills and expertise
as part of our business and geographic expansion objectives."
Mr. Brady holds a Bachelor of Arts degree from the University of
California at Los Angeles and a Juris Doctor degree from Santa
Clara University School of Law. He is based in Solera's San
Diego office and will report directly to Mr. Aquila.
About Solera Holdings
Headquarted in San Diego, California, Solera Holdings Inc.
(NYSE: SLH) -- http://www.solerainc.com/-- is a global provider
of integrated software, information, and workflow management
systems designed to support activities within the automotive
claims process. Solera has operations in 51 countries across
six continents. The Solera companies include Audatex Holdings
in the U.S., Canada, and in more than 45 additional countries,
Informex in Belgium, Sidexa in France, ABZ in The Netherlands,
Hollander serving the North American recycling market, and IMS
providing medical review services.
It has Latin America operations in Brazil, Colombia, Costa Rica,
Ecuador, El Salvador, Dominican Republic, Ecuador, El Salvador,
Guatemala, Honduras, Mexico, Nicaragua, Panama, Puerto Rico and
Venezuela.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 21, 2008, Standard & Poor's Ratings Services raised its
corporate credit rating and senior secured debt ratings to 'BB-'
from 'B+' on Solera Holdings Inc. with a stable outlook.
=============
J A M A I C A
=============
NATIONAL COMMERCIAL: Account Closure Won't Cripple Cash Plus
------------------------------------------------------------
The National Commercial Bank denied that the closure of Cash
Plus Limited's accounts is having a crippling effect on the
company's operations, Radio Jamaica reports.
As previously reported, Cash Plus' Taxation, Audit and Payroll
Vice President Dorothy Essor said that the closure of the
company's accounts in the National Commercial Bank affected the
payment of salaries and suppliers.
The National Commercial Bank's General Counsel Dave Garcia
commented to Radio Jamaica, "I think it's remarkable that it
could be suggested that the closure of their accounts could have
anything to do with making their payments because when we closed
their accounts we gave Cash Plus back their money in manager's
cheques and we indicated that we would cash those cheques. So
with cash in hand and assuming the cash to be sufficient to meet
their obligations then how could it possibly be that the closure
of the accounts could prevent payment."
Cash Plus' accounts were closed because its activities placed
the National Commercial Bank at regulatory risk, Radio Jamaica
states, citing Mr. Garcia. The National Commercial decided to
close Cash Plus' accounts when the company failed to supply
required information to the bank, respond to questions and
concerns regarding the publishing of the bank's unaudited
financial results in late December 2007, and license itself to
the Financial Services Commission to be able to conduct
securities business in Jamaica.
Cash Plus obtained an injunction from a Jamaican court to block
the bank from closing its accounts last year. Cash Plus wanted
a declaration from the Supreme Court that the closure of the
accounts would violate the National Commercial Bank's "fiduciary
duty" to Cash Plus, breach the Fair Competition Act, and be a
"malicious, unreasonable and anti-competitive action." Cash
Plus' legal representatives claimed that institutions refused to
cash clients' cheques and were moving to close down the firm's
accounts. Cash Plus sought to extend the injunction, but was
denied by the court. The injunction expired last week. The
Court found that the Cash Plus had breached its contracts with
the National Commercial Bank by failing to provide the bank with
vital information the bank had requested.
Headquartered in Kingston, Jamaica, the National Commercial Bank
Jamaica Limited -- http://www.jncb.com/-- provides commercial
and retail banking, wealth management services. The company's
services include personal banking, business banking, mortgage
loans, wealth management and insurance services. Founded in
1977, the bank primarily operates in West Indies and the UK.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 18, 2006, Standard & Poor's Rating Services affirmed its
'B/B' counterparty credit and CD ratings on National Commercial
Bank Jamaica Ltd. S&P said the outlook is stable.
As reported in the Troubled Company Reporter-Latin America on
May 2, 2007, Fitch Ratings affirmed these ratings on Jamaica-
based National Commercial Bank Jamaica Limited: long-term
foreign and local currency Issuer Default at 'B+'; short-term
foreign and local currency rating at 'B'; individual at 'D'; and
support at 4. The rating outlook on the bank's ratings is
stable, in line with Fitch's view of the sovereign's
creditworthiness.
NATIONAL WATER: Stops Water Supply in Buena Vista Mountain
----------------------------------------------------------
The National Water Commission cut water supply in Buena Vista
Mountain on March 11, Radio Jamaica reports.
According to Radio Jamaica, the Commission representatives were
accompanied by the police when they disconnected the pipe that
also supplies water to these communities:
-- Russell,
-- South Hampton,
-- Warmister, and
-- Malvern.
Radio Jamaica relates that Buena Vista residents are blocking
the Warmister main road to protest the disconnection of their
water supply.
The Commission told Radio Jamaica that it cut the illegal
connections. The Commission's Black River Branch Supervisor
Kingsley James told Radio Jamaica that the Commission is on a
parish wide drive to remove illegal connections to its water
system that diverts water from the proper channels.
The National Water Commission is a statutory organization
charged with the responsibility of providing potable water and
wastewater services for the people of Jamaica.
* * *
The National Water Commission of Jamaica had been criticized for
failing to act promptly in cutting its losses. For the fiscal
years 2002 and 2003, the water commission accumulated a net loss
of US$2.11 billion. The deficit fell to US$1.86 billion the
following year, and to US$670 million in 2004 and 2005.
Jamaican citizens have been complaining to the commission about
water disruptions in their communities, resulting to
restrictions of water use.
===========
M E X I C O
===========
BEARINGPOINT INC: Dec. 31 Balance Sheet Upside Down by $469.2MM
---------------------------------------------------------------
BearingPoint Inc. reported that on Dec. 31, 2007, the company
had total assets of $1,981.4 million, total liabilities of
$2,450.6 million resulting to a total stockholders' deficit of
$469.2 million.
For the fourth quarter of 2007, the company realized a net loss
of $169.0 million, which was significantly above the average of
its net losses incurred in the first three quarters of fiscal
2007. Proactive management actions taken in the fourth quarter
and intended to drive further cost savings in 2008 contributed
significantly to the magnitude of this loss.
These fourth quarter management actions included, among other
things, lease and facilities restructuring costs of $20.6
million and additional severance costs of $14.4 million. Also
contributing to the fourth-quarter loss was $58.8 million in
contract write-downs and loss accruals, a notable net year-over-
year increase over the fourth quarter of fiscal 2006.
Notwithstanding these fourth-quarter increases, total contract
write-downs and loss accruals for the full fiscal year continued
to show improvement, as compared to contract write-downs and
loss accruals for 2006 and 2005.
The company incurred a net loss of $362.7 million for the fiscal
year ended Dec. 31, 2007 compared to $213.4 million net loss for
fiscal 2006. Contributing to the net loss for 2007 were bonuses
accrued and payable to the company's employees, in part for
2006, as well as 2007; non-cash compensation expense related to
the vesting of stock-based awards; lease and facilities
restructuring charges; external costs related to the preparation
of its financial statements, and its auditors' review of the
company's financial statements and the testing of internal
controls. Year-over-year external accounting costs were down
significantly and the company expects continued improvement in
these costs in 2008.
"Today marks an important milestone for BearingPoint as we are
once again timely with our SEC filings," Ed Harbach,
BearingPoint's chief executive officer, said. "In 2007, we also
significantly reduced our SG&A expenses and exceeded our year-
end cash balance target for 2007, ending the year with cash on
hand of $468.5 million.
"While last year's financial results were disappointing overall,
we have a lot to build on. In 2008, we are focused on
controlling costs, increasing cash flow and improving
utilization of our talented workforce," Mr. Harbach continued.
"We are investing in our people, in our systems and in our
technology, all of which will lead to a stronger and more
flexible organization.
"We have some strong momentum entering the year, which we will
use to strategically leverage our global footprint and
capitalize on areas where we have a differentiated portfolio of
expertise, particularly our strong Public Services practice,"
Mr. Harbach added. "We will execute our plan, lead with our
strengths and make profitability our first priority."
"We are now at a clear inflection point in our business and in
our history. We are excited about what our future holds,"Mr.
Harbach concluded.
Headquartered in McLean, Virginia, BearingPoint Inc., (NYSE: BE)
-- http://www.BearingPoint.com/-- provides of management and
technology consulting services to Global 2000 companies and
government organizations in 60 countries worldwide. The firm
has approximately 17,500 employees, and major practice areas
focusing on the Public Services, Financial Services and
Commercial Services markets.
BearingPoint has global locations including in Indonesia,
Australia, Austria, China, India, Japan, Mexico, Portugal,
Singapore and Thailand.
* * *
As reported in the Troubled Company Reporter-Latin America
Dec. 11, 2007, Moody's Investor Service confirmed BearingPoint
Inc.'s B2 corporate family rating and assigned a negative rating
outlook. The rating agency also downgraded the company's US$250
million Series A Subordinated Convertible Notes to Caa1 from B3
(LGD5, 86%) and US$200 million Series B Subordinated Convertible
Notes to Caa1 from B3 (LGD5, 86%).
CHARLES RIVER: Moody's Revises Outlook to Stable; Holds Ratings
---------------------------------------------------------------
Moody's Investors Service revised the outlook of Charles River
Laboratories International, Inc. to stable from negative and
affirmed the existing ratings. Moody's also affirmed Charles
River's speculative grade liquidity rating of SGL-1 reflecting
S&P's belief that the company should continue to have very good
liquidity throughout 2008.
The change in outlook to stable reflects several favorable
trends in Charles River's business since Moody's changed the
outlook to negative in December 2006. For example, demand for
Charles River's research models and services has continued to
strengthen, in particular for transgenic models, which had been
weak at the time of the negative outlook. Moody's also believes
that Charles River should begin to benefit more meaningfully in
2008 from its capital investments as new facilities and capacity
expansions begin to ramp up.
The Ba1 Corporate Family Rating continues to reflect Charles
River's leading market positions in its core preclinical
research services markets, low customer concentration,
relatively stable business profile and strong operating cash
flow generation. The ratings are constrained by the high level
of capital investment and limited free cash flow, the risk of
shareholder friendly policies and the company's limited scale
relative to investment grade health care companies. The
affirmation of the ratings and stable outlook do not incorporate
the expectation for any meaningful increase in adjusted leverage
in the near-term.
Ratings Affirmed/LGD Assessments Revised:
Charles River Laboratories International, Inc.
-- Corporate Family Rating, Ba1
-- Probability of Default Rating, Ba1
-- Speculative Grade Liquidity Rating, SGL-1
-- Senior Secured $200 million Revolving Credit Facility due
2011, Baa3 (LGD2, 20%)
-- Senior Secured $156 million Term Loan facility
($109.2 million outstanding at 12/31/2007) due 2011, Baa3
(LGD2, 20%)
Charles River Laboratories Preclinical Services Montreal
(subsidiary)
-- Canadian Revolving Credit Facility (CAD $12 million), Baa3
(LGD2, 20%)
Charles River Laboratories Preclinical Services Edinburgh
(subsidiary)
-- GBP Revolving Credit Facility (GBP 6 million), Baa3
(LGD2, 20%)
The rating outlook is stable.
Wilmington, Mass.-based Charles River Laboratories International
Inc. (NYSE: CRL) -- http://www.criver.com/-- sells pathogen-
free, fertilized chicken eggs to poultry vaccine makers. It
also offers contract staffing, preclinical drug candidate
testing, and other drug development services. It also markets
research models -- rats and mice bred for preclinical
experiments, including transgenic "knock out" mice -- to the
pharmaceutical and biotech industries. The company owns large
Research Models and Services (RMS) facilities in the United
Kingdom, France, Germany, Japan, Mexico, Canada and the United
States.
* * *
As reported in the Troubled Company Reporter on Dec. 27, 2006,
Moody's affirmed its ratings on Charles River Laboratories
International, Inc. with a negative outlook, Corporate Family
Rating, Ba1; Probability of Default Rating, Ba1; Loss Given
Default Assessment, LGD4, 50%; Senior Secured U.S. Revolving
Credit Facility (US$200 million face), Baa3, LGD2, 23%; and
Senior Secured U.S. term loan facility (US$156 million face),
Baa3, LGD2, 23%.
DESARROLLADORA HOMEX: Holders Approve US$250MM Share Repurchase
---------------------------------------------------------------
At the shareholders' meeting held March 10, 2008, Desarrolladora
Homex, S.A.B. de C.V. was authorized to purchase up to US$250
million of the corporation's shares of common stock. The share
repurchase program was effective March 11.
"The approval of this share repurchase program reflects our
ongoing commitment to increase shareholder value and our
confidence that current market price levels do not reflect our
current potential value. In addition, we believe that our
strong balance sheet and cash flows will allow us to implement
this program while continuing to pursue investment in growth
opportunities in our business without risking our credit
ratings," said Desarrolladora Homex Chief Executive Officer,
Gerardo de Nicolas.
Share repurchases will take place on the open market, from time
to time, based on market conditions. The repurchase program has
no time limit and may be suspended for periods or discontinued
by the board of directors at any time. The company has
approximately 335.9 million shares of common stock outstanding
as of Dec. 31, 2007.
About Homex
Desarrolladora Homex S.A.B. de C.V. (NYSE: HXM, BMV: HOMEX) --
http://www.homex.com.mx-- is a vertically integrated home
development company focused on affordable entry-level and
middle-income housing in Mexico. It is one of the most
geographically diverse homebuilders in the country. Homex is
the largest homebuilder in Mexico, based on revenues, number of
homes sold and net income.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 19, 2007, Moody's affirmed Desarrolladora Homex's national
scale issuer rating at A3.mx, and global scale local currency
issuer rating at Ba3. Moody's said the rating outlook remains
positive.
EMPRESAS ICA: Unit Submits Proposal for Periferico Norte Project
----------------------------------------------------------------
Empresas ICA, S.A.B. de C.V.'s subsidiary Conoisa has presented
with Grupo Hermes a final proposal for the construction of an
elevated viaduct for the Periferico Norte highway in Mexican
state Edomex, Business News Americas reports.
BNamericas relates that 15 firms were initially interested in
the project. However, only three presented final proposals.
Edomex's Highway and Airport Systems General Director Manuel
Ortiz told BNamericas that the other two companies that
presented proposals are Promotora IDEAL and Spanish OHL.
BNamericas notes that the contract for the project will be
awarded on April 21, 2008.
According to BNamericas, the integral proposal for the project
consists of three stages:
-- the architectonic project, including construction
and works schedule;
-- the economic proposal, which could reach
MXN16 billion;
-- the third stage contemplates studies of traffic
demand, unit prices and tentative toll fares on the
elevated viaduct.
The report says that the submitted proposals contain a deadline
for project completion.
The highway will link El Toreo in Naucalpan with Valle Dorado in
Tlalnepantla. Construction of the elevated viaduct will let
vehicles to travel at average speeds of 90 kilometers per hour
during rush hour along its 22-kilometer stretch, compared to the
10-kilometer-per-hour speeds currently traveled during peak
congestion periods, BNamericas states.
Empresas ICA -- http://www.ica.com.mx/-- the largest
engineering, construction, and procurement company in Mexico,
was founded in 1947. ICA has completed construction and
engineering projects in 21 countries. ICA's principal business
units include civil construction and industrial construction.
Through its subsidiaries, ICA also develops housing, manages
airports, and operates tunnels, highways, and municipal services
under government concession contracts and/or partial sale of
long-term contract rights.
* * *
As reported in the Troubled Company Reporter-Latin America on
Sept. 20, 2007, Standard & Poor's Ratings Services affirmed its
'BB-' long-term corporate credit rating on Empresas ICA S.A.B.
de C.V. S&P said the outlook is stable.
* Fitch Says US Downturn Won't Affect Mexican Sovereign Ratings
---------------------------------------------------------------
Standard & Poor's Ratings Services has issued an article,
entitled "Credit FAQ: The Outlook For Mexico In 2008," that
examines growth prospects for the United Mexican States in 2008
and the possible impact of energy sector reform on the
sovereign.
According to credit analyst Joydeep Mukherji, S&P does not
expect Mexico's sovereign ratings to be affected by the downturn
in the United States economy and the resulting deceleration in
GDP growth in Mexico. "The combination of macroeconomic
stability, the development of domestic capital markets, and the
timely approval of tax reform in 2007 should sustain market
confidence and the current sovereign ratings during a period of
sluggish economic growth in 2008," Mr. Mukherji said.
The Mexican Congress is likely to debate energy sector reform
later this year, including steps to strengthen Petroleos
Mexicanos (PEMEX; the national oil and gas company). Such
reform, along with steps to boost private investment in limited
segments of the energy industry, could help staunch the decline
in oil production in recent years.
The analyst explained that there is considerable uncertainty
about the details of potential reform in the energy sector and,
hence, on the impact it may have on the economy and on Mexico's
credit rating in the coming years. Modest energy reform will
help Mexico sustain its current credit rating, but could fail to
address the deeper obstacles to faster growth in the country as
a whole.
"The key factor is whether potential energy sector reform will
lead to other reform that could boost productivity growth across
the economy, raising GDP growth and potentially strengthening
the sovereign's credit rating. From a political angle, it is
easier to approve reform that gives more money to PEMEX, but
that may be a modest improvement compared with the entire range
of reform that could affect the energy sector," Mr. Mukherji
concluded.
===========
P A N A M A
===========
SOLO CUP: Reports US$68 Million Net Income in Fiscal Year 2007
--------------------------------------------------------------
Solo Cup Company reported its fiscal year 2007 financial
results. The results of the company's Hoffmaster(R) and
Japanese businesses have been classified as discontinued
operations for all periods presented in its consolidated
financial statements. As previously disclosed, these businesses
were fully divested in the fourth quarter of 2007.
* Fourth Quarter 2007 Results
For the thirteen weeks ended Dec. 30, 2007, the company reported
net sales from continuing operations of US$522 million, versus
US$534 million for the thirteen weeks ended Dec. 31, 2006.
Gross profit from continuing operations for the quarter
increased from the year ago period by US$40 million to US$74
million, reflecting a gross margin of 14.3% for the current
quarter versus 6.4% for the comparable period in 2006.
Operating income from continuing operations for the fourth
quarter 2007 was US$23 million, which represents a US$40 million
improvement over the prior year. The company reported net
income of US$99 million for the quarter, which included a gain
on the sale of discontinued operations of US$77 million,
compared to a net loss of US$34 million in the comparable period
in 2006.
"Our solid results in the fourth quarter reflect the significant
progress made throughout 2007 in focusing the company on its
core business and improving profitability," said Solo Cup
president and chief executive officer, Robert M. Korzenski. "We
have integrated the Performance Improvement Program into our
company culture, successfully transitioning it from a formal,
stand-alone project into an ongoing and sustainable process."
* Fiscal Year 2007 Results
For the fiscal year ended Dec. 30, 2007, the company reported
net sales from continuing operations of US$2,106 million, versus
US$2,123 million for the fiscal year ended Dec. 31, 2006. The
decrease in net sales reflects a decrease in sales volume
partially offset by higher sales prices. The volume decrease
reflects general industry trends as well as shifts in the
company's product mix, including a de-emphasis of certain
higher-volume commodity products such as straws and stirrers.
The increase in sales prices reflects price increases
implemented over the past year in response to higher costs for
resin, paper and energy, as well as more disciplined selling
practices.
Gross margin from continuing operations in fiscal year 2007 was
11.7% compared to 9.5% in the prior year period, primarily
driven by improved product mix and greater efficiencies
resulting from implementation of the company's performance
improvement initiatives. Selling, general and administrative
expenses from continuing operations decreased 6% this year to
US$204 million. The company reported net income in fiscal year
2007 of US$68 million, compared to a net loss of US$375 million
in fiscal year 2006.
As of Dec. 30, 2007, the company had in excess of US$136 million
of liquidity under its revolving credit facilities and cash on
hand. Net cash provided by operating activities during the
fiscal year 2007 was US$96 million compared to net cash used in
operating activities of US$52 million during 2006, a US$148
million improvement. During 2007, the company reduced its net
debt by approximately US$400 million. Capital expenditures for
2007 totaled US$49 million versus US$61 million during 2006.
The company's Performance Improvement Program, announced in
December 2006, was designed to reduce costs and build
profitability. Initiatives in Supply Chain and Operations, SG&A
and Commercial Optimization focused on maximizing cash flow,
reducing costs, improving margin, increasing value and building
a performance culture. As of its formal conclusion in December
2007, the program generated approximately US$75 million in
annualized run-rate EBITDA improvements, exceeding its original
targets.
"With cash flow from operations now helping to fund the business
and gross margins trending in the right direction, the company
is back on track," said Mr. Korzenski. "However, there is still
more work to be done to bring our performance to industry
levels. As our full-year results show, we have the right
leadership team in place to manage and now grow our business."
Mr. Korzenski continued, "Solo Cup Company is in a far better
position than it was one year ago. The company has regained the
financial flexibility necessary for focused investments in the
business. We are now better equipped to service and grow with
our customers, and to compete in an increasingly competitive
marketplace."
Company Divests Dairy Packaging Assets
On March 7, 2008, the company completed the sale of its dairy
packaging assets. Terms of the transaction were not disclosed.
A portion of the proceeds will be reinvested in the company's
core business with the remainder to be applied to the Company's
term loan.
"Dairy packaging requires a different business model and a
significant investment to remain competitive," said Mr.
Korzenski. "This transaction is part of Solo's larger effort to
improve performance by divesting non-core, non-strategic assets
in order to focus resources on more strategic growth
opportunities."
About Solo Cup Company
Headquartered in Highland Park, Illinois, Solo Cup Company --
http://www.solocup.com/-- manufactures disposable foodservice
products for the consumer and retail, foodservice, packaging,
and international markets. Solo Cup has broad expertise in
plastic, paper, and foam disposables and creates brand name
products under the Solo, Sweetheart, Fonda, and Hoffmaster
names. The company was established in 1936 and has a global
presence with facilities in Asia, Canada, Europe, Mexico, Panama
and the United States.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 29, 2007, Fitch Ratings upgraded Solo Cup Company's senior
secured first lien term loan rating to 'BB-/RR1' from 'B+/RR2',
senior secured revolving credit facility rating to 'BB-/RR1'
from 'B+/RR2' and senior subordinated notes rating to 'CCC+/RR5'
from 'CCC/RR6'. Fitch also affirmed Solo Cup's Issuer default
rating at 'B-'.
===============
P A R A G U A Y
===============
TELECOM PERSONAL: Will Launch 3G Services in Asuncion
-----------------------------------------------------
Telecom Personal will launch 3G services in Asuncion, Paraguay,
Business News Americas reports.
Telecom Personal's Corporate Affairs Manager Francisco Gutierrez
told Paraguayan news daily La Nacion that the launching of the
services is expected in the coming days. BNamericas notes that
Telecom Personal wants to launch mobile broadband and video
call.
Mr. Gutierrez told BNamericas that Telecom Personal has
installed the network based on HSDPA technology to launch the
services. The coverage will initially be in Asuncion but
Telecom Personal will expand it nationwide by year-end,
BNamericas states, citing Mr. Gutierrez.
Headquartered in Buenos Aires, Telecom Personal SA --
http://www.personal.com.ar/-- is the wireless provider of
incumbent operator Telecom Argentina, providing services in
Argentina and Paraguay over a GSM network. The company has 11.7
million users, 10.2 million in Argentina, representing an
estimated 30% market share, as of Sept. 30, 2007. For the LTM
ended Sept. 30, 2007, revenues and EBITDA accounted for ARS5.4
billion and ARS1.2 billon, respectively.
* * *
As reported in the Troubled Company Reporter-Latin America on
Feb. 21, 2008, Fitch Ratings Service upgraded Telecom Personal
SA's foreign and local currency issuer default ratings to 'B+'
from 'B'. Fitch said the outlook is positive.
=================
V E N E Z U E L A
=================
CITGO PETROLEUM: Will Honor Long-Term Crude Agreements
------------------------------------------------------
Citgo Petroleum Corp.'s Chief Executive Officer Alejandro
Granado told Dow Jones Newswires that the Venezuelan government,
which owns the company, will continue to honor long-term crude
accords.
According to the report, Mr. Granado said that the country is
open to foreign investment in its oil fields despite Citgo
Petroleum parent Petroleos de Venezuela's recent conflicts with
oil companies operating in the country.
As reported in the Troubled Company Reporter-Latin America on
March 5, 2008, Exxon Mobil asked the London High Court to uphold
the order freezing US$12 billion in Petroleos de Venezuela's
assets to support the arbitration process between both parties.
The asset-freeze order against Petroleos de Venezuela was made
so that Exxon Mobil would be able to extract compensation
should it win a pending arbitration. Petroleos de Venezuela has
appealed the asset-freeze order and asserted that the U.K. court
doesn't have the authority to award the injunction because the
case involved U.S. and Venezuelan firms.
Mr. Granado said during a conference of refining executives that
some of opportunities for investing in Venezuela's Orinoco crude
belt remain. Opportunities to construct a plant to upgrade or
process the heavy oil from Orinoco or abroad are available and
the country would also welcome foreign investment in a joint
venture. Venezuela would still be an important supplier of
crude to the western hemisphere.
Headquartered in Houston, Texas, Citgo Petroleum Corp. --
http://www.citgo.com/-- is owned by PDV America, an indirect,
wholly owned subsidiary of Petroleos de Venezuela SA, the state-
owned oil company of Venezuela.
Petroleos de Venezuela is Venezuela's state oil company in
charge of the development of the petroleum, petrochemical, and
coal industry, as well as planning, coordinating, supervising,
and controlling the operational activities of its divisions,
both in Venezuela and abroad.
* * *
As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2007, CITGO Petroleum Corporation's Issuer Default
Rating was lowered by Fitch to 'BB-' from 'BB' following the
company's announcement that it has taken out a US$1 billion
bridge loan and used the proceeds to make a US$1 billion loan to
parent Petroleos de Venezuela SA (PDVSA IDR 'BB-', Negative
Outlook).
PETROLEOS DE VENEZUELA: To Form Company With Energia Argentina
--------------------------------------------------------------
Petroleos de Venezuela S.A. will work with Energia Argentina
S.A. to create a joint venture, Xinhua News reports.
Venezuela's President Hugo Chavez has signed an energy accord
with Argentina's President Cristina Fernandez for the two
companies.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China.
PDVSA is one of the top exporters of oil to the US with proven
reserves of 77.2 billion barrels of oil -- the most outside the
Middle East -- and about 150 trillion cu. ft. of natural gas.
PDVSA's exploration and production take place in Venezuela, but
the company also has refining and marketing operations in the
Caribbean, Europe, and the US.
* * *
To date, Petroleos de Venezuela SA carries Fitch Ratings' BB-
long term issuer default rating and local currency long term
issuer default rating. Fitch said the ratings outlook was
negative.
PETROLEOS DE VENEZUELA: Will Discuss Asset Swap With Exxon Mobil
----------------------------------------------------------------
Petroleos de Venezuela S.A. will discuss an asset swap with
Exxon Mobil Cop. for the Chalmette plant in Louisiana, after a
London court rules on the US$12 billion asset freeze case,
Reuters reports, citing Venezuelan Oil and Energy Minister
Rafael Ramirez.
As reported in the Troubled Company Reporter-Latin America on
March 11, 2008, the Venezuelan government asked the Organization
of Petroleum Exporting Countries to discuss during a March 5
meeting Exxon Mobil's seeking of asset freeze court order
against Petroleos de Venezuela. Exxon Mobil asked the London
High Court to uphold the order freezing US$12 billion in
Petroleos de Venezuela's assets to support the arbitration
process between both parties. The asset-freeze order against
Petroleos de Venezuela was made so that Exxon Mobil Corp. would
be able to extract compensation should it win a pending
arbitration. Petroleos de Venezuela has appealed the asset-
freeze order. Petroleos de Venezuela contends that the U.K.
court doesn't have the authority to award the injunction because
the case involved U.S. and Venezuelan firms. Exxon Mobil didn't
explain why it is seeking to freeze Petroleos de Venezuela's
assets when the U.S. giant is demanding compensation of no more
than US$5 billion. OPEC said it will support Venezuela in the
legal dispute between Petroleos de Venezuela and Exxon Mobil.
Petroleos de Venezuela could offer its stake in Chalmette
refinery, a 50/50 joint venture between Exxon and Petroleos de
Venezuela, as compensation for the company's stake in the Cerro
Negro heavy oil project, Reuters relates, citing Exxon Mobil's
Chief Executive Rex Tillerson.
Mr. Tillerson commented to Reuters, "We will discuss (Chalmette)
once this issue of the London court is resolved. (But) we are
not going to have conversations until we resolve the London
issue." Venezuela wouldn't negotiate any accord to resolve the
conflict until the court asset freeze order is lifted, Reuters
relates, citing Mr. Tillerson.
Petroleos de Venezuela SA -- http://www.pdv.com/-- is
Venezuela's state oil company in charge of the development of
the petroleum, petrochemical and coal industry, as well as
planning, coordinating, supervising and controlling the
operational activities of its divisions, both in Venezuela and
abroad. The company has a commercial office in China. The
company also has offices in London and Holland.
RUHR OEL GMBH, a German refinery in 50% run by PDVSA. The
company has a one million-barrel refining capacity per day, of
which around 250,000 belong to the Venezuelan corporation. The
company also provides the German market with 20% of its by-
products and petrochemicals needs.
PDVSA runs 50 % of this company in association with Veba Oel,
which has four refineries, that makes it the biggest company
refining oil products in Germany. It has a one million-barrel
refining capacity per day, of which around 250,000 belong to the
Venezuelan corporation. Besides this, RUHR OEL GMBH provides
the German market with 20% of its by-products and petrochemicals
needs.
PDVSA and the Finnish Neste Corporation are partners, with a
share 50% each of the corporation AB NYNAS PETROLEUM, which runs
refineries in Sweden, Belgium and The United Kingdom.
* * *
To date, Petroleos de Venezuela SA carries Fitch Ratings' BB-
long term issuer default rating and local currency long term
issuer default rating. Fitch said the ratings outlook was
negative.
* VENEZUELA: Banking Sector Expands Loan Portfolio, Fitch Says
--------------------------------------------------------------
Fitch released a special report, titled "Venezuelan Banks:
Review and Outlook." According to the report, for the fourth
year in a row, the Venezuelan banking system was able to expand
its loan portfolio in real terms, boosted by record imports,
higher government spending and negative real interest rates that
have exacerbated consumption among households. Contrary to
earlier periods of rapid loan growth, this expansion has been
funded by a significant reduction in the investment portfolio
and the liquidity of the system has been diminished.
"Given the challenges in terms of profitability, capitalization
and the persistent government interference in the banking
system, Fitch's outlook for Venezuelan banks remains negative,"
according to Fitch's Latin America Financial Institutions Group
Senior Director, Franklin Santarelli. "While bank management
has a history of adapting to rapid change in the Venezuelan
market, their flexibility is increasingly limited by existing
and prospective controls on their activities."
Loan expansion has been almost 400% in real terms since end-
2003, while consumer loans registered an unprecedented growth of
almost 700% in real terms, representing around 32% of total
loans at end-2007. The expansion in the consumer loan market, a
lower concentration of time deposits and its positive effects on
funding cost, as well the growth of the overall portfolio, have
been enough to cope with the tight interest rate control from
the government as spreads registered a slight recovery during
the year. Nevertheless, higher loan loss provisions and the
increase in the effective tax rate resulted in a stagnation of
the return on average assets ratio at 2.2%, well-below
historical averages, while the return on average equity ratio
reached almost 30%, still above the average inflation of 2007
(20%) but also lower than the historic average.
Despite booming economic activity in Venezuela, the natural
seasoning of the loan portfolio, the relatively higher risk of
consumer loans, some structural issues related to trade finance
facilities and bottlenecks in the distribution of foreign
currency by the authorities have resulted in an increase in
troubled loans, well above gross loan growth. Due to lower cash
dividends, a more moderate increase in assets and the fact that
several banks barely comply with the regulatory capital
requirements, the system was able to gain part of the share of
capital as a source of funding, with the equity-to-assets ratio
slightly improving to 7.8% at end-2007 from 7% at end-2006, and
the free capital-to-banking assets ratio increasing to 5.5%.
Both levels are considered low given the inherent volatility of
the economy, low overall reserve levels and limited upside for
profits.
Going forward, Fitch Ratings expects that the aforementioned
pressures could persist, an aspect incorporated in the currently
low individual and issuer default ratings of Venezuelan banks.
Nevertheless, a more pronounced trend could result in future
adjustment in the ratings.
The full report is available on the Fitch Ratings web site,
http://www.fitchratings.com/
===========
X X X X X X
===========
* Fitch Publishes Latin America Rating List Summary For February
----------------------------------------------------------------
This is the latest comprehensive list of Fitch Ratings' 47 Latin
America national scale rating changes for the month of February,
which include: upgrades, downgrades, outlook revisions, watch
changes, and withdrawn ratings. These rating changes were
previously announced via separate press releases in Spanish or
Portuguese.
Fitch upgraded these National ratings:
Companhia Tecnica de Engenharia Eletrica (Brazil):
-- National Long Term Rating to 'A-(bra)' outlook stable from
'BBB+(bra)' outlook stable.
-- Rating actions took place on Feb. 12, 2008.
Inversiones y Representaciones S.A. (Argentina):
-- National Long Term Rating to 'AA-(arg)' outlook stable
from 'A-(arg)' outlook stable.
-- Notes due Feb. 2, 2017, National Long Term Rating to 'AA-
(arg)' from 'A-(arg)'.
-- Rating actions took place on Feb. 4, 2008.
Parque Arauco S.A. (Chile):
-- Senior unsecured debt issuance program, National Long Term
Rating to 'A+(chl)' outlook negative from 'A(chl)' outlook
negative.
-- Rating actions took place on Feb. 19, 2008.
Renta Nacional Compania de Seguros de Vida S.A. (Chile):
-- National Insurer Financial Strength to 'BBB-(chl) outlook
stable' from 'BB(chl)' outlook stable.
-- Rating action took place on Feb. 4, 2008.
Telecom Argentina S.A. (Argentina):
-- National Long Term Rating to 'AA-(arg)' outlook positive
from 'A(arg)' outlook positive.
-- Senior unsecured notes due Oct. 15, 2014, Series A,
National Long Term Rating to 'AA-(arg)' from 'A(arg)'.
-- Senior unsecured notes due Oct. 15, 2014, Series A,
National Long Term Rating to 'AA-(arg)' from 'A(arg)'.
-- Senior unsecured notes due Oct. 15, 2014, Series A,
National Long Term Rating to 'AA-(arg)' from 'A(arg)'.
-- Senior unsecured notes due Oct. 15, 2014, Series A,
National Long Term Rating to 'AA-(arg)' from 'A(arg)'.
-- Senior unsecured notes due Oct. 15, 2014, Series A,
National Long Term Rating to 'AA-(arg)' from 'A(arg)'.
-- Senior unsecured notes due Oct. 15, 2014, Series A,
National Long Term Rating to 'AA-(arg)' from 'A(arg)'.
-- Senior unsecured notes due Oct. 15, 2014, Series B,
National Long Term Rating to 'AA-(arg)' from 'A(arg)'.
-- Senior unsecured notes due Oct. 15, 2014, Series REGS,
National Long Term Rating to 'AA-(arg)' from 'A(arg)'.
-- Rating actions took place on Feb. 19, 2008.
Telecom Personal S.A. (Argentina):
-- National Long Term Rating to 'AA-(arg)' outlook positive
from 'A(arg)' outlook stable.
-- Obligaciones Negociables Series 2, National Long Term
Rating to 'AA-(arg)' from 'A(arg)'.
-- Obligaciones Negociables Series 3, National Long Term
Rating to 'AA-(arg)' from 'A(arg)'.
-- Rating actions took place on Feb. 19, 2008.
Telefonica de Argentina S.A. (Argentina):
-- National Long Term Rating to 'AA+(arg)' outlook stable
from 'AA-(arg)' Outlook Stable.
-- Senior unsecured notes due Aug. 1, 2011, National Long
Term Rating to 'AA+(arg)' from 'AA-(arg)'.
-- Senior unsecured notes due May 7, 2008, National Long Term
Rating to 'AA+(arg)' from 'AA-(arg)'.
-- Senior unsecured notes due Nov. 7, 2010, National Long
Term Rating to 'AA+(arg)' from 'AA-(arg)'.
-- Rating actions took place on Feb. 19, 2008.
Municipio de Celaya, Gto (Mexico):
-- National Long Term Rating to 'AA-(mex)' from 'A+(mex)'.
-- Rating action took place on Feb. 22, 2008.
Municipio de Pachuca de Soto, Hgo (Mexico):
-- National Long Term Rating to 'A-(mex)' from 'BBB+(mex)'.
-- Rating action took place on Feb. 12, 2008.
Securitizadora BICE S.A. (Chile):
-- Series 2002-5 B, National Long Term Rating to 'A+(chl)'
from 'C(chl)'.
-- Series 2006-23 WA, National Long Term Rating to 'AAA(chl)'
from 'AA(chl)'.
-- Series 2006-23 WB, National Long Term Rating to 'BBB(chl)'
from 'C(chl)'.
-- Series 2006-23 WC, National Long Term Rating to 'BBB-
(chl)' from 'C(chl)'.
-- Rating actions took place on Feb. 29, 2008.
Fitch has also downgraded these ratings:
America Textil SA (Bolivia):
-- Senior unsecured bonds Emision 1, National Long Term
Rating to 'D(bol)' from 'B-(bol)' outlook evolving.
-- Senior unsecured bonds Emision 2, National Long Term
Rating to 'D(bol)' from 'B-(bol)' outlook evolving.
-- Senior unsecured bonds Emision 3, National Long Term
Rating to 'D(bol)' from 'B-(bol)' outlook evolving.
-- Senior unsecured bonds Emision 4, National Long Term
Rating to 'D(bol)' from 'B-(bol)' outlook evolving.
-- Senior unsecured bonds Emision 5, National Long Term
Rating to 'D(bol)' from 'B-(bol)' outlook evolving.
-- Senior unsecured bonds Emision 6, National Long Term
Rating to 'CCC+(bol)' outlook negative from 'CCC+(bol)
outlook evolving.
-- Senior unsecured bonds Emision 7, National Long Term
Rating to 'CCC+(bol)' outlook negative from 'CCC+(bol)'
outlook evolving.
-- Senior unsecured bonds Emision 8, National Long Term
Rating to 'CCC+(bol)' outlook negative from 'CCC+(bol)'
outlook evolving.
-- Senior unsecured bonds Emision 9, National Long Term
Rating to 'CCC+(bol)' outlook negative from 'CCC+(bol)'
outlook evolving.
-- Rating actions took place on Feb. 20, 2008.
Construcciones y Drenajes Profundos (Mexico):
-- Certificates due Nov. 13, 2018, National Long Term Rating
to 'BBB(mex)' from 'A(mex)'.
-- Rating actions took place on Feb. 13, 2008.
Estado de Tabasco (Mexico):
-- National Long Term Rating to 'A(mex)' outlook negative
from 'A+(mex)' outlook negative.
-- Loan Santander due Aug, 16, 2016, National Long Term
Rating to 'AA+(mex)' from 'AAA(mex)'.
-- Rating actions took place on Feb. 25, 2008
Municipio de Puerto Penasco, Son (Mexico):
-- National Long Term Rating to 'BBB-(Mex)' from 'BBB(mex)'.
-- Rating actions took place on Feb. 25, 2008.
Securitizadora Security GMAC-RFC SA (Chile):
-- Series 2003-5 A, National Long Term Rating to 'A(chl)'
from 'AA(chl)'.
-- Series 2003-5 B, National Long Term Rating to 'BB(chl)'
from 'BBB(chl)'.
-- Rating actions took place on Feb. 26, 2008.
These ratings were affirmed and withdrawn:
Mutual Guapay (Bolivia):
-- National Long Term Rating of 'D(bol)'.
-- National Short Term Rating of 'D(bol)'.
-- National Long Term Local Currency Rating of 'D'.
-- National Short Term Local Currency Rating of 'D'.
-- Rating actions took place on Feb. 20, 2008.
Profuturo Compania de Seguros de Vida SA (Argentina):
-- National Insurer Financial Strength of 'BBB+(arg)'.
-- Rating actions took place on Feb. 25, 2008.
Additional information on these rating actions can be found on:
Fitch Ratings http://www.fitchratings.com
Fitch Argentina http://www.fitchratings.com.ar
Fitch Bolivia http://www.fitchratings.com.bo
Fitch Brazil http://www.fitchratings.com.br
Fitch Chile http://www.fitchratings.cl
Fitch Mexico http://www.fitchmexico.com/
National Ratings are an assessment of credit quality relative to
the rating of the 'best' credit risk in a country. This 'best'
risk will normally, although not always, be assigned to all
financial commitments issued or guaranteed by the sovereign
state.
***********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter - Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Sheryl Joy P. Olano, Rizande delos Santos,
Pamella Ritah K. Jala, Tara Eliza Tecarro, Frauline S. Abangan,
and Peter A. Chapman, Editors.
Copyright 2008. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without
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Information contained herein is obtained from sources believed
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* * * End of Transmission * * *