TCRLA_Public/081226.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Friday, December 26, 2008, Vol. 9, No. 255

                            Headlines

A R G E N T I N A

BANCO MACRO: Extends Shares Repurchase Date Until December 31
* Fitch Affirms 'B' Rating on City of Buenos Aires' EMTN Program


B E R M U D A

XL CAPITAL: Moody's Downgrades Preferred Stock Ratings to 'Ba1'


B R A Z I L

BANCO DO BRASIL: To Provide Auto Suppliers With BRL3 Bil. Loan
BANCO FINASA: Fitch Affirms and Withdraws 'D' Individual Rating
BNDES: Approves BRL6.1-Bil. Fund for Santo Antonio Hydro Plant
CSN: MMX Wins Private Bidding Process for Port Services
ELECTROBRAS: Signs EUR20 Million Deal With Areva

EMBRATEL: Enters Domestic Cable TV Market With "Via Embratel"
FORD MOTOR: Moody's Lowers Ratings Deeper Into Junk Territory
GENERAL MOTORS: To Mull Alternatives for Saturn, May Sell Brand
GENERAL MOTORS: Fitch Downgrades IDR to 'C'; Default Imminent
GLOBAL CROSSING: Closes Data Center Deal With Brazilian Media RPC

REDE ENERGIA: Moody's Reviews 'B2' Ratings for Possible Downgrade
* BRAZIL: Bank Lending Growth in Nov. Slowed to 2%


C A Y M A N  I S L A N D S

BAKER STREET: S&P Downgrades Ratings on Class D and E to Low-B


C O L O M B I A

ECOPETROL: Inks Exploration Deal With StatoilHydro
* COLOMBIA: To Delay COP3 Trillion Spending Budget


D O M I N I C A N   R E P U B L I C

CAP CANA: Fitch Downgrades Ratings on $250 Mil. Notes to 'CCC/RR4'


E C U A D O R

* ECUADOR: To Sell US$1.5 Bil. Gov't Bonds in Domestic Market


J A M A I C A

GOODYEAR JAMAICA: Liquidation Prompts Shares Trading Halt


M E X I C O

KANSAS CITY SOUTHERN: Signs Freight Rail Traffic Deal w/ U.S. DOT
KEY PLASTICS: Taps Chanin Capital as Financial Advisors
MUNICIPALITY OF JIUTEPEC: Moody's Puts Ba2 Rating on Global Scale
PRECISION PARTS: Organizational Meeting to Form Panel on Dec. 23


                         - - - - -


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

BANCO MACRO: Extends Shares Repurchase Date Until December 31
-------------------------------------------------------------
Banco Macro has moved its plan to repurchase the company's shares
to December 31, 2008, due to volatile market environment,
IncaInvest News reports.

According to the report, the repurchase plan has a maximum limit
of 102 million shares, or a total amount of AR$495 million (US$145
million).

The report discloses that as of December 19, the company
repurchased 74.5 million shares, which equals 10.89% of the
company's 684 million total shares.

For the quarter ended September 30, 2008, the company reported a
net income of AR$163 million (US$47.8 million), the report says.

Headquartered in Buenos Aires, Argentina, Banco Macro (NYSE:
BMA; Buenos Aires: BMA) -- http://www.macro.com.ar/-- had
consolidated assets of ARS11.6 billion (US$3.7 billion) and
consolidated deposits of ARS6 billion (US$2 million) as of
June 2007.

                         *     *     *

The company continues to carry Fitch Ratings's Foreign
and local currency long-term Issuer Default Ratings at 'B+',
Foreign and local currency short-term IDRs at 'B', and
Individual at 'D'.  Fitch said the rating outlook is stable.


* Fitch Affirms 'B' Rating on City of Buenos Aires' EMTN Program
----------------------------------------------------------------
Fitch Ratings has affirmed the 'B' rating on City of Buenos Aires'
euro medium-term note program.  The Rating Outlook remains Stable.

Additionally, Fitch affirms the city's long-term foreign and local
currency ratings at 'B' after the downgrade of the Republic of
Argentina's long-term local currency Issuer Default Rating to 'B-'
from 'B'.

The ratings recognize strengths in the city's credit profile,
including its large and diversified economy, an adequate liquidity
position, its sustainable debt levels and manageable debt-service
repayment schedule.  Also reflected is the city's financial
flexibility which is due to a majority portion of its total
expenditure being financed with local sources (88%), as opposed to
only 12% representing federal transfers.

In recent years (since the debt restructuring in 2002), the city
has met its debt obligations in a timely fashion, notably during
2006 and 2007, when the highest levels of amortization occurred.
This is reflected in the recent improvement in debt ratios in
recent years.  As of May 2008 only two series out of the five
originally issued are outstanding.

In the first six months of 2008, the city achieved a financial
surplus of ARP 908 million (15% over total revenues) showing and
improvement compared with the same period of 2007.  Besides the
operating expenses level is in line with the budgeted.



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

XL CAPITAL: Moody's Downgrades Preferred Stock Ratings to 'Ba1'
---------------------------------------------------------------
Moody's Investors Service has downgraded the senior debt rating of
XL Capital Ltd to Baa2 from Baa1 and the insurance financial
strength ratings of XL's insurance and reinsurance operating
subsidiaries to A2 from A1.  This rating action concludes a review
for possible downgrade that was initiated on October 23, 2008
following XL's release of preliminary third quarter results.  The
outlook for the ratings is negative.

According to Moody's, the downgrade reflects three principal
concerns: (1) the company's reduced financial flexibility and
operating companies' pressure on capital adequacy as a result of
the significant unrealized losses in its investment holdings, (2)
anticipated weakness in profitability over the medium term, and 3)
elevated risk of a deterioration in market position.

XL's ratings reflect the group's overall good market positions in
its principal operating segments as well as its diversified
earnings streams by geography and line of business.  The ratings
also reflect the company's sound liquidity and capitalization at
its flagship Bermuda operating subsidiaries (where the majority of
XL's capital resides) as well as its solid core underwriting
performance.

These fundamental strengths are tempered by the intrinsic
volatility of XL's reinsurance businesses and certain insurance
lines, the company's exposure to natural catastrophes, significant
financial leverage, and past volatile profitability.  The negative
outlook reflects Moody's concerns regarding XL's ability to
sustain its position as a leading global insurance and reinsurance
provider given current market stress, and to generate consistent
profitability to cover its high fixed charges.

XL's ratings could be downgraded further if prospective organic
capital generation declines due to materially lower profits (e.g.
returns on equity consistent in mid single digits), if material
additional realized investment losses and impairments are
sustained or deemed likely to occur over the next several quarters
(e.g., in excess of $1 billion pre-tax), or if the company's
franchise value in terms of new business and retention of existing
business weakens.  Conversely, the outlook could be moved to
stable if XL stabilizes its franchise; successfully transitions
under its new management team to a simpler organization; generates
interest coverage above five times; and financial flexibility,
earnings, and capitalization stabilizes.

These ratings were downgraded and assigned a negative outlook:

* XL Capital Ltd -- senior unsecured debt to Baa2 from Baa1;
   preferred stock to Ba1 from Baa3; senior unsecured shelf to
   (P)Baa2 from (P)Baa1; subordinated shelf to (P)Baa3 from
   (P)Baa2; preferred stock shelf to (P)Ba1 from (P)Baa3;

* XL Capital Trust I, II, III -- trust preferred securities \
   shelf to (P)Baa3 from (P)Baa2;

* XL Capital Finance (Europe) plc -- senior unsecured debt to
   Baa2 from Baa1; senior unsecured shelf to (P)Baa2 from
   (P)Baa1;

* Stoneheath Re -- preferred stock to Ba1 from Baa3;

* XL Insurance (Bermuda) Ltd -- insurance financial strength
   ratings to A2 from A1;

* XL Insurance Company Limited -- insurance financial strength
   ratings to A2 from A1;

* XL Insurance Switzerland -- insurance financial strength
   ratings to A2 from A1;

* XL Re Ltd -- insurance financial strength ratings to A2 from \
   A1;

* XL Reinsurance America Inc. -- insurance financial strength
   ratings to A2 from A1;

* Indian Harbor Insurance Company -- insurance financial
   strength ratings to A2 from A1;

* Greenwich Insurance Company -- insurance financial strength
   ratings to A2 from A1;

* XL Specialty Insurance Company -- insurance financial strength
   ratings to A2 from A1;

* XL Insurance Company of New York, Inc. -- insurance financial
   strength ratings to A2 from A1;

* XL Life Insurance and Annuity Company -- insurance financial
   strength ratings to A2 from A1;

* XLLIAC Global Funding -- backed medium term notes to A2 from
   A1;

* Premium Asset Trust Series 2004-9 -- senior secured to A2 from
   A1.

XL Capital Ltd, headquartered in Hamilton, Bermuda, is a leading
provider of insurance and reinsurance coverages through its
operating subsidiaries to industrial, commercial and professional
service firms, insurance companies and other enterprises on a
worldwide basis.  As of September 30, 2008, XL Capital Ltd had
consolidated assets of $50.8 billion and shareholders' equity of
$8.7 billion.

The last rating action occurred on November 14, 2008 when Moody's
rated XL's Series C preference shares Baa3 and placed them on
review for possible downgrade.

Moody's insurance financial strength ratings are opinions of the
ability of insurance companies to pay punctually senior
policyholder claims and obligations.



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

BANCO DO BRASIL: To Provide Auto Suppliers With BRL3 Bil. Loan
--------------------------------------------------------------
Banco do Brasil SA said it would offer a BRL3 billion (US$1.25
billion) loan
to some 500 automotive suppliers to cover taxes and end-of-year
benefits for workers, Kenneth Rapoza of Dow Jones Newswires
reports.

The report relates the loan would be available to parts makers
with no payments due for three months, and would be for 12 months.

According to the report, multinational automotive suppliers are
facing a severe slowdown in Brazilian automotive production.  In
November, the report recalls, Brazil's vehicle production declined
34.4% from October as tight credit took consumers out of the
"once-hot" auto market.  Sales and production, DJ Newswires
relates, have fallen quickly since late September and the
government has acted to pump more credit into the market to entice
consumers to buy new and used vehicles.

Banco do Brasil has already made around BRL4 billion available in
new car loans, the report notes.

Meanwhile, DJ Newswires discloses Gustavo Schmidt, sales director
at Volkswagen AG (VLKAY) in Brazil, said the federal government
reduced the IPI industrial products tax on local automakers who
quickly passed on the benefits to consumers, resulting in sticker
price declines of 5.5% to 7.4%, depending on engine size.

                      About Banco do Brasil

Banco do Brasil SA is Brazil's federal bank and is the largest
in Latin America with some 20 million clients and more than
7,000 points of sale (3,200 branches) in Brazil, and 34 offices
and partnerships in 26 other countries.  In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.

                         *     *     *

Banco do Brasil continues to carry a Ba2 foreign currency deposit
rating from Moody's Investors Service.  The rating was placed in
February 2008.


BANCO FINASA: Fitch Affirms and Withdraws 'D' Individual Rating
---------------------------------------------------------------
Fitch Ratings has affirmed and withdrawn these ratings of Banco
Finasa BMC S.A. (formerly Banco BMC S.A.).  Fitch will no longer
provide ratings or analytical coverage of Finasa BMC.

  -- Long-term foreign currency Issuer Default Rating: 'BBB';
     Outlook Stable

  -- Short-term foreign currency IDR: 'F2'

  -- Long-term local currency IDR: 'BBB+'; Outlook Stable

  -- Short-term local currency IDR: 'F2'

  -- Individual: 'D'

  -- Support Rating: '2'


BNDES: Approves BRL6.1-Bil. Fund for Santo Antonio Hydro Plant
--------------------------------------------------------------
Banco Nacional de Desenvolvimento Economico e Social SA ("BNDES")
has approved a BRL6.1 billion (US$2.6 billion) fund for the
construction of the 3.15GW Santo Antônio hydro plant, Business
News Americas reports.

According to the report, the loan was awarded to Santo Antônio
Energia, a wholly owned subsidiary of the Madeira Energia
consortium.  The consortium won the auction late last year to
build and operate the Santo Antônio plant, which is one of two
hydro projects on the Madeira river in Rondônia state, in Brazil's
Amazon region, that will be connected to the national grid.

The plant is scheduled to start operations in 2012, the report
says.

Banco Nacional de Desenvolvimento Economico e Social SA 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 continues to carry 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.


CSN: MMX Wins Private Bidding Process for Port Services
-------------------------------------------------------
MMX Mineracao e Metalicos S.A. has won the private bidding process
promoted by Companhia Siderurgica Nacional ("CSN") for port
services to be provided by Terminal de Carga do Porto de Itaguai
("Terminal"), in Itaguai Municipality, Rio de Janeiro State, which
will be fully dedicated to ship iron ore produced at MMX's Sudeste
System.

The port services agreement between MMX and CSN will be in full
force and effect during 3 years starting from January 2009, and
can be renewable for an additional 3 year period.

The contract foresees shipments of 1.2 million metric tons of iron
ore in 2009 and 2 million metric tons in each one of the two
following years, 2010 and 2011.

The price to be paid to CSN for the port services in 2009 will be
a fixed amount per shipped ton, and can be reviewed in the
following years according to iron ore price adjustments.

MMX already has a long-term contract with MRS Logistica that
secures the railway transportation of the compromised iron ore
amounts to be exported, since MMX Sudeste System up to the
Terminal.

Despite the short-term uncertainties related to the mining sector
worldwide, the Company believes that it will be able to export all
the compromised amounts of iron ore, mainly due to the need, from
major international consumers, for high quality Brazilian iron
ore, in order to improve its products performance and also to
optimize its industrial activities.

The access to the Terminal grants MMX an export capacity of
2 million ton per year until 2011 and enables MMX to settle, from
now on, long-term iron ore export contracts.

It is expected for the second half of 2011 the start-up of LLX
Sudeste Port, located at the same region of the Terminal and where
MMX has already secured availability to export the whole iron ore
production from MMX Sudeste System.

                            About CSN

Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional
S.A. (NYSE: SID) -- 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
Sept. 10, 2008, Moody's Investors Service upgraded the senior
unsecured long term debt ratings of Companhia Siderurgica Nacional
and its backed notes from Ba2 to Ba1.

The TCR-LA reported on June 6, 2008, that Standard & Poor's
Ratings Services raised its corporate credit rating on Brazil-
based steelmaker Companhia Siderurgica Nacional to 'BB+' from 'BB'
and removed it from CreditWatch.  S&P had placed the ratings on
CreditWatch with positive implications on May 30, 2008, for better
cash flow protection measures.  The outlook is positive.  At the
same time, S&P raised the corporate credit rating on subsidiary
National Steel SA to 'BB-' from 'B+', with a positive outlook.


ELECTROBRAS: Signs EUR20 Million Deal With Areva
------------------------------------------------
French nuclear power generation solutions provider Areva and
Brazilian electricity utility Eletronuclear, a unit of Centrais
Eletricas Brasileiras SA ("Electrobras"), have signed a deal to
extend the industrial co-operation between the companies, Energy
Business Review reports.

In a press release, AREVA has indicated its willingness to provide
its partner with the expertise it requires to fabricate the
nuclear fuel needed for the new reactors.

AREVA and Eletronuclear have also signed a services contract for
the
Angra 1 plant, the company statement said.

The contract is worth around E20 million for the supply of an
electricity substation.

Centrais Eletricas Brasileiras SA, a.k.a. Eletrobras, operates in
the electric power sector in Brazil.  The objective of Eletrobras
is to perform activities involving studies, projects, construction
and operation of electric power plants, transmission and
distribution lines as well as underlying trade operations arising
therefrom.  Eletrobras is tasked with the preparation of studies
and with drawing up construction projects for hydroelectric
generation, transmission lines and substations to supply Brazil.
It engages areas involving granting loans and
financing, providing guarantees, locally or abroad, and
acquiring debentures of companies and holders of public electric
power services under their control; providing loans and
guarantees, locally or abroad, for technical and scientific
research institutions; and promoting and supporting researches
relating to the power sector, linked to the generation,
transmission and distribution of electric power.

                          *     *     *

Centrais Eletricas Brasileiras S.A. aka Eletrobras continues to
carry a 'BB+' long-term foreign currency counterparty credit
rating from Standard & Poor's with positive outlook.  The rating
was raised by S&P to its current level from 'BB' in May 2007.


EMBRATEL: Enters Domestic Cable TV Market With "Via Embratel"
-------------------------------------------------------------
Embratel Participacoes SA has entered the domestic cable TV market
with the Via Embratel service.  The new service offers a wide
variety of channels that are appealing to the whole family.  With
this new product, Embratel intends to provide more entertainment,
knowledge, culture and education, as a complement to the regular
TV programs.

"Embratel is once more ahead of the market with this special
service", says Antonio João, the director responsible for Via
Embratel.

The offer includes celebrated TV channels like Animal Planet, Band
News, Canal Via Embratel, Cartoon Network, Discovery Channel,
Discovery Home&Health, Discovery Kids, Disney Channel, ESPN, Fox,
Fox Life, FX, GloboNews, GNT, MegaPix, Multishow, National
Geographic, People&Arts, Space, SportTV, Sportv2, Telecine
Premium, Telecine Action, Telecine Light, Telecine Pipoca and
Telecine Cult, TNT, VH1 and others, plus 15 radio channels.
Expecting to serve a market of over 20 million residential
consumers, Embratel will be providing this new service through its
own Stat One C2 series satellite network for HD transmission.

Via Embratel uses last-generation digital technology with MPEG4
for carrying and DVB-S2 for broadcasting purposes.  "The
competitive edges of this new solution are based on Embratel's top
quality andreliability, providing HD audio and video using the
MPEG 4 digital technology, the new global communication multimedia
feature for audio and video transmission with unique quality",
states Mr. João.

Embratel will install a 60-centimeter antenna and a digital
receiver at the customer's house.  With this equipment the
subscribers can access all channels, the Electronic Programming
Guide and the child control feature for parental control.

This new service will complement the existing NET network, of
which Embratel is one of the controllers, offering cable TV
services to locations not yet served.  "With Via Embratel, a new
top quality choice to enhance the TV programming is available to
customers in Brazil ", says Mr. Joao.

The entrance of Embratel in this market segment and the expansion
of its satellite coverage are in line with the introduction of
digital TV in Brazil.  With this offer, Embratel consolidates its
reputation as provider of a broad portfolio of solutions for
various segments.

The Via Embratel equipment (receiver and antenna) will be leased
to customers on a loan-for-use basis.  During the launching period
ending on Dec. 31, 2008, the contracting and installation will be
available for free.  The initial monthly charge is R$59,90.

                    About the DTH technology

Via Embratel uses the DTH (Direct to Home) technology, which sends
TV signals via satellite directly to customers' TV sets with high
quality audio and video.  The signal is received through a 60-
centimeter satellite dish and 10,9 GHz to 36 GHz frequency band.

The transmission in this system is digital.  The receiver must be
able to understand digital signals and change them into analog
format, so as to be watched on a regular TV.

Via Embratel uses the MPEG 4 technology, with a compression system
to enhance the use of satellite capacity.

                            Satellite

The launch of this new service happens together with the recent
launch of Star One C2 satellite. In addition to expanding the
telecommunications capacity in Brazil, the new Star One C2 will be
used on the transmission of signals for Embratel's cable TV.  The
new satellite will not only meet the Brazilian demand, but also
transmit signals to all South America, where the subsidiaries of
Telmex - Embratel's major stockholder - are established.

Embratel has one of the world's most modern Satellite Control
Centers located in Guaratiba (RJ), which is the teleport where the
signal reception, transmission and processing equipment is
installed.

                         About Embratel

Embratel -- http://www.embratel.com.br-- is a major
telecommunications carrier in Brazil.  It offers up-to-date
telecommunications solutions to the Brazilian market including
local, long distance domestic and international calling; data,
video and Internet transmission.  Embratel can provide services
all over the country through its satellite solutions.  Embratel
has been part of the history of Brazil for 43 years, playing a
major role in the country's development.

Embratel is part of Telmex Internacional, S.A.B. de C.V., --
http://www.telmexinternacional.com-- a leading telecommunications
service operating in Brazil, Colombia, Argentina, Chile, Peru,
Uruguay and Ecuador, focused on the provision of a broad range of
services including voice, data, satellite and video transmission,
cable and satellite TV, access to the Internet and complete
telecommunications solutions, in addition to services related to
yellow pages directories in Mexico, United States, Argentina and
Peru.

                         *     *     *

Embratel Participacoes continues to carry Moody's "B1" local
currency issuer rating and "B2" senior unsecured debt rating.


FORD MOTOR: Moody's Lowers Ratings Deeper Into Junk Territory
-------------------------------------------------------------
Moody's Investors Service lowered the Corporate Family Rating and
Probability of Default Rating of Ford Motor Company to Caa3 from
Caa1 and lowered the company's Speculative Grade Liquidity rating
to SGL-4 from SGL-3.  The outlook is negative.  The downgrade
reflects the increased risk that Ford will have to undertake some
form of balance sheet restructuring in order to achieve the same
UAW concessions that General Motors (GM) and Chrysler are likely
to achieve as a result of the recently-approved government bailout
loans.  Such a balance sheet restructuring would likely entail a
loss for bond holders and would be viewed by Moody's as a
distressed exchange and consequently treated as a default for
analytic purposes.

Bruce Clark, Senior Vice President with Moody's said, "In return
for its loans to GM and Chrysler, Washington is going to demand
that all stake holders step up and make sacrifices. This will mean
wage and benefit concessions from the UAW, and haircuts to debt
for creditors." Clark went on to explain, "Even if Ford ends up
not needing government loans because of its stronger liquidity
position, the company must have UAW parity with GM and Chrysler.
But, the UAW is unlikely to make concessions to Ford unless Ford's
creditors also bear some pain in the form of a debt
restructuring."

The terms of the recently-approved $17.4 billion in short-term
government financing for GM and Chrysler include important
operational and financial targets. Substantial progress in
achieving these targets will be important to: the government's
decision to extend these loans beyond March 31, 2009; the
provision of any additional funds that might be needed; and, the
restoration of the companies' operational competitiveness. These
targets include substantial wage and benefit concessions by the
UAW and a reduction in debt by as much as two-thirds through a
debt for equity exchange. Moody's expects that considerable
progress will be made in both of these targeted areas.

Ford has maintained that it is not facing a near-term liquidity
shortfall, and it is not seeking short-term financial assistance
from the government. Rather, it has requested the provision of up
to $9 billion in bridge financing that would be available should
market and demand conditions during 2009 be worse than the company
anticipates. Nevertheless, if GM and Chrysler achieve UAW
concessions in conjunction with a forced reduction in debt,
Moody's believes it will be critical for Ford to obtain similar
labor concessions in order to remain competitive. However, Ford is
unlikely to receive those concessions in the absence of some form
of debt reduction that would entail a loss to bond holders.

Moody's expects that the framework of the government loans
extended to GM and Chrysler will create considerable labor and
cost of capital motivations for Ford to undertake a debt
restructuring even if the company does not have to draw on bailout
funds from the government. Moreover, it is possible that the
provision of the committed borrowing facility that Ford is
requesting from the government could have labor concession and
debt reduction provisions similar to those contained in the loans
granted to GM and Chrysler.

Ford's liquidity position at September 30, 2008 consisted of $18.9
billion in cash and $10.7 billion in undrawn committed credit
facilities. The company believes that this liquidity profile,
combined with the cash saving initiatives it is undertaking,
should enable it to fund itself through 2009. However, the weak
outlook for the US economy, depressed consumer confidence, and
falling automotive demand in the US and Europe could severely
strain the company's liquidity position during 2009. Ford's
current operating plan anticipates that US light vehicle sales
will approximate 12.2 million units during 2009. This planning
assumption is significantly higher than the 10.3 million
seasonally adjusted annual rate of US automotive shipments for
November. As a result of these mounting operating pressures Ford's
Speculative Grade Liquidity rating was lowered to SGL-4,
indicating weak liquidity during the coming 12 to 15 months. These
same operating pressures result in the negative rating outlook.

The last rating action on Ford was an affirmation of the company's
Caa1 Corporate Family Rating on December 3, 2008.

The principal methodology used in rating Ford was Moody's Global
Automotive Manufacturer Methodology, which can be found at
http://www.moodys.comin the Credit Policy & Methodologies
directory, in the Ratings Methodologies subdirectory.  Other
methodologies and factors that may have been considered in the
process of rating this issuer can also be found in the Credit
Policy & Methodologies directory."

Ford Motor Company, headquartered in Dearborn, MI, is a leading
global automotive manufacturer.


GENERAL MOTORS: To Mull Alternatives for Saturn, May Sell Brand
---------------------------------------------------------------
Sharon Terlep at Dow Jones Newswires reports that General Motors
promised to explore alternatives for its Saturn brand, including
joining it with another automaker, selling it, or closing the
brand, as part of the restructuring plan the company rolled out to
secure federal loans.

GM's sales chief Mark LaNeve, to try to minimize speculation that
the company will kill the Saturn brand, said on Monday that GM is
focused on finding a new business model for the "money-losing
lineup," promising aggressive incentives beginning in January to
move 2009 cars and trucks, Dow Jones relates.

According to Dow Jones, GM launched the Saturn brand in 1985 to
battle Toyota Motor Co. and Honda Motor Corp.  Dow Jones says that
despite major investments from GM and an all-new lineup of
vehicles, Saturn has struggled with "red ink" and dropping sales
for years.

Dow Jones quoted Mr. LaNeve as saying, "We have a very successful
consumer brand with Saturn.  We need to find the right business
model.  We are completely behind Saturn."  GM has received
hundreds of letters from Saturn clients supporting the brand, the
report states, citing Mr. LaNeve.

Mr. LaNeve, according to Dow Jones, said that the franchise
agreements GM has with Saturn dealers gives the automaker more
freedom to restructure the brand.

GM is concentrating on clearing its 2007 and 2008 model-year
vehicles from showrooms by year-end, so that the company would be
able to make discounts on 2009 vehicles, Dow Jones says, citing
Mr. LaNeve.  The report quoted Mr. LaNeve as saying, "We need to
sell to generate cash.  We will be aggressive," on incentives.

                     About General Motors

Headquartered in Detroit, Michigan, General Motors Corp. (NYSE:
GM) -- http://www.gm.com/-- was founded in 1908.  GM employs
about 266,000 people around the world and manufactures cars and
trucks in 35 countries.  In 2007, nearly 9.37 million GM cars and
trucks were sold globally under the following brands: Buick,
Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel,
Pontiac, Saab, Saturn, Vauxhall and Wuling.  GM's OnStar
subsidiary is the industry leader in vehicle safety, security and
information services.

General Motors Latin America, Africa and Middle East, with
headquarters in Miramar, Florida, is one of GM's four regional
business units.  GM LAAM employs approximately 37,000 people in
18 countries and has manufacturing facilities in Argentina,
Brazil, Colombia, Ecuador, Egypt, Kenya, South Africa and
Venezuela.  GM LAAM markets vehicles under the Buick,
Cadillac, Chevrolet, GMC, Hummer, Isuzu, Opel, Saab and
Suzuki brands.

As reported in the Troubled Company Reporter on Nov. 10,
2008, General Motors Corporation's balance sheet at
Sept. 30, 2008, showed total assets of $110.425 billion, total
liabilities of $170.3 billion, resulting in a stockholders'
deficit of $59.9 billion.

                         *     *     *

As reported in the Troubled Company Reporter on Nov. 11, 2008,
Standard & Poor's Ratings Services lowered its ratings, including
the corporate credit rating, on General Motors Corp. to 'CCC+'
from 'B-' and removed them from CreditWatch, where they had been
placed with negative implications on Oct. 9, 2008.  S&P said that
the outlook is negative.

Fitch Ratings, as reported in the Troubled Company Reporter on
Nov. 11, 2008, placed the Issuer Default Rating of General Motors
on Rating Watch Negative as a result of the company's rapidly
diminishing liquidity position.  Given the current liquidity level
of $16.2 billion and the pace of negative cash flows, Fitch
expects that GM will require direct federal assistance over the
next quarter and the forbearance of trade creditors in order to
avoid default.  With virtually no further access to external
capital and little potential for material asset sales, cash
holdings are expected to shortly reach minimum required operating
levels.  Fitch placed these on Rating Watch Negative:

-- Senior secured at 'B/RR1';
-- Senior unsecured at 'CCC-/RR5'.

As reported in the Troubled Company Reporter on June 24, 2008,
DBRS has placed the ratings of General Motors Corp. and General
Motors of Canada Limited Under Review with Negative Implications.
The rating action reflects the structural deterioration of the
company's operations in North America brought on by high oil
prices and a slowing U.S. Economy.


GENERAL MOTORS: Fitch Downgrades IDR to 'C'; Default Imminent
-------------------------------------------------------------
Fitch Ratings has downgraded the Issuer Default Rating of General
Motors Corporation to 'C', indicating that default is imminent.

The rating action reflects the terms of federal government
assistance that were announced, which include a reduction in the
company's current debt load.  Debt reduction is expected to take
the form of a distressed debt exchange, which is a default under
Fitch's methodology, although how the exchange is to be
accomplished remains highly uncertain.

The ability of GM to use equity to address debt and VEBA
obligations is very limited given the size of the obligations and
GM's current market capitalization.  The threat of a bankruptcy
remains, given the terms of the federal assistance, and the
maturity.  Fitch expects the current agreement will be
significantly restructured prior to its maturity.

Recovery ratings for unsecured holders could move down further
from current estimates of 10%-30%.  Under GM's plan, unsecured
holders could lose 50% immediately under a distressed debt
exchange.  Recoveries will also be impaired by the potential
elimination of any remaining value ascribed to GM's equity
interest in GMAC, and the fact that government loans (or loan
guarantees) will be placed in a senior position to exiting
unsecured debt.  Changes to other liabilities, such as health
care, and other changes to GMs cost structure will also be
factored into the recovery analysis as details become available.

Fitch has downgraded these ratings:

General Motors Corporation

-- IDR to 'C' from 'CCC';
-- Senior secured to 'CCC/RR1' from 'B/RR1';
-- Senior unsecured to 'C/RR5' from 'CCC-/RR5'.

General Motors of Canada Ltd.

-- Long-term IDR to 'C' from 'CCC';
-- Senior unsecured to 'C/RR5' from 'CCC-/RR5'.


GLOBAL CROSSING: Closes Data Center Deal With Brazilian Media RPC
-----------------------------------------------------------------
Global Crossing has completed the implementation of a
communications network to provide Data Center and Internet
Services to Rede Paranaense de Comunicacao (RPC).  RPC is one of
the largest media groups in the state of Parana, Brazil, and owner
of two major newspapers, Gazeta do Povo and Jornal de Londrina, as
well as TV and radio broadcast outlets.

To support RPC's news portal, Global Crossing is providing RPC
with Internet access, Managed Security Services and dedicated
hosting, through the company's data center services.  Currently,
Global Crossing's growing data center footprint offers world-class
facilities in 60 major cities worldwide to provide businesses
access to key customers and business partners.  In Brazil, the
company has data center facilities in Cotia, Curitiba and Rio de
Janeiro.

Through Global Crossing's comprehensive management security and
dedicated hosting services, RPC can monitor traffic 24 hours a
day, seven days a week, while always enjoying high-speed Internet
connectivity.  They can also rely on the ability of securely
sharing data inside and outside the company.

"Our mission as a news portal is to bring the same strength of our
content from our media outlets to the Internet.  For the past two
years, our number of viewers increased 35 percent.  That's why we
decided to look for the most advanced technological solutions,"
said Denilson Faria, IT director of RPC.  "Global Crossing offers
us the speed, security and reliability to ensure our customers
have a better experience when viewing news through our news
portal."

"Reliability, performance and security are especially critical for
a media group like RPC, since they need to ensure their readers
have the best experience possible when accessing their news
portal," said Marcos Malfatti, senior sales vice president of
Global Crossing in Brazil.  "We are fully committed to support
these requirements, through our advanced IP network and top-notch
data center infrastructure in the region."

Global Crossing offers solutions that allow customers to focus on
their businesses while Global Crossing manages and administers
their entire IT infrastructure and network.  Global Crossing's
hosting solutions provide customers housing, equipment, storage,
backup and monitoring, as well as managed services that free them
to run their application or Web site.

                      About Rede Paranaense

Founded in November of 2000, Rede Paranaense de Comunicacao (RPC)
is the largest media group in the state of Parana and one of the
top ten largest media groups in Brazil.  Currently, RPC owns two
newspapers, including Gazeta do Povo, Parana's number 1 daily,
eight TV broadcasters affiliated to Rede Globo, two radio
stations, a news portal and the RPC Institute.  The company has
more than 1,800 employees.

                      About Global Crossing

Global Crossing (Nasdaq: GLBC) is a leading global IP solutions
provider with the world's first integrated global IP-based
network. The company offers a full range of secure data, voice,
and video products to approximately 40 percent of the Fortune 500,
as well as to 700 carriers, mobile operators and ISPs. It delivers
services to more than 690 cities in more than 60 countries and six
continents around the globe.

In Latin America, Global Crossing´s business has operations in
Argentina, Brazil, Chile, Colombia, Ecuador, Panama, Peru, Mexico,
Venezuela, the United States (Florida) and the Caribbean region.
In addition to its IP-based, fiber-optic network, Global
Crossing's regional infrastructure includes 15 metropolitan
networks and 15 world-class data centers located in the main
business centers of Latin America.

                          *     *     *

As of June 30, 2008, the company reported US$2.65 billion in total
assets, US$2.80 billion in total liabilities, and US$150 million
in stockholders' deficit.


REDE ENERGIA: Moody's Reviews 'B2' Ratings for Possible Downgrade
-----------------------------------------------------------------
Moody's placed the B2 global scale and Ba1.br national scale
corporate family ratings of Rede Energia S.A. and the B3 global
scale rating of REDE's US$575 million perpetual bonds under review
for possible downgrade given the recent deterioration in liquidity
and credit metrics.  Moody's is concerned with respect to
company's ability to refinance its significant amount of short-
term debt and capital expenditures program in a timely manner,
given the current adverse conditions in cross-border and domestic
capital markets.

The review of REDE's ratings will consider the company's liquidity
position and financial profile going forward. Moody's believes
that REDE will need to access capital markets to lengthen its debt
profile or raise new capital over the next twelve months.  In the
long term, it appears that further equity capitalization will be
critical, given the group's increased leverage and higher cost of
capital.  Moody's will closely monitor management's ability to
successfully address its liquidity and financial leverage in the
months ahead.  The potential for a possible covenant breach
associated with certain long-term debt issues will also be
reviewed.

The rating action also affects the Issuer Ratings of these
companies:

  -- B2 / Ba1.br - Centrais Eletricas do Para S.A.
  -- B2 / Ba1.br - Centrais Eletricas Mato-grossenses S.A.
  -- B2 / Ba1.br - Comp. de Ener. Eletr. do Est. do Tocantins

The Ba1.br national scale rating of Rede reflects the standing of
the company's credit quality relative to its domestic peers.
Moody's National Scale Ratings are intended as relative measures
of creditworthiness among debt issues and issuers within a
country, enabling market participants to better differentiate
relative risks.  NSRs in Brazil are designated by the ".br"
suffix.  NSRs differ from global scale ratings in that they are
not globally comparable to the full universe of Moody's rated
entities, but only with other rated entities within the same
country.

The last rating action for REDE was on September 21 2007, when
Moody's assigned a B3 global scale rating to REDE's perpetual
bonds.

Rede Energia S.A., headquartered in Sao Paulo, Brazil, is a
holding company with interests in electricity distribution and
generation.  Through majority-owned subsidiaries Companhia de
Energia Eletrica do Estado do Tocantins - Celtins, Centrais
Eletricas Matogrossenses S.A. - Cemat, Centrais Eletricas do Para
S.A. - Celpa  and Empresa Energ. do Mato Grosso Sul -- Enersul,
the group operates concessions to distribute electricity in the
states of Tocantins, Mato Grosso, Para and Mato Grosso do Sul,
respectively.  In addition, Rede operates small power distribution
concessions in a number of municipalities in the states of Sao
Paulo, Minas Gerais and Parana.  Overall, the group serves
approximately 4.2 million clients. Rede reported consolidated net
revenues of approximately BRL 3.6 million in the last twelve
months ending September 30, 2008.


* BRAZIL: Bank Lending Growth in Nov. Slowed to 2%
--------------------------------------------------
Brazil's bank-lending growth in November slowed to 2% as interest
increases and borrowers avoided new debt caused by the global
credit crunch, Bloomberg News reports citing central bank figures.

The central bank, the report relates, said state and non-state
bank lending rose to BRL1.209 trillion (US$509.4 billion) from
BRL1.19 trillion in October, while lending climbed 33% from the
same month last year.

Bloomberg News recalls lending grew at the slowest pace since a
1.7% increase in July as the global credit crunch made banks more
selective in giving credit and lowered consumer confidence.

Roberto Padovani, chief economist at Banco WestLB do Brasil in Sao
Paulo, said credit in Brazil will likely grow 15% in 2009, the
report notes.  "The global crisis affects the Brazilian financial
system indirectly as it affects confidence in the future," Mr.
Padovani told the news agency in an interview.  "As there isn't a
solvency problem, there's room for growth next year but at a much
slower pace," he said.

Meanwhile, Bloomberg News relates, new loan issuance declined 9.4%
in the month to BRL142.4 billion, while issuance for new car loans
declined 22% last month.

The central bank, Bloomberg News notes, said total mortgages
outstanding increased 3.3% in November to BRL61.8 billion.

The report says total loans represented 40.3% of Brazil's  gross
domestic product in November from 39.6% in October and 33.6% in
the same month last year.

The Federative Republic of Brazil is the largest and most populous
country in South America.  It is the fifth largest country by
geographical area, the fifth most populous country, and the fourth
most populous democracy in the world.  Its population comprises
the majority of the world's Portuguese speakers.

According to Moody's Rating Agency, the country continues to carry
a BA1 local and foreign currency rating.



==========================
C A Y M A N  I S L A N D S
==========================

BAKER STREET: S&P Downgrades Ratings on Class D and E to Low-B
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
class D and E notes issued by Baker Street CLO II Ltd., a
collateralized loan obligation transaction backed by corporate
loans managed by Seix Advisors, and removed them from CreditWatch,
where they were placed with negative implications on Dec. 5, 2008.

S&P lowered the ratings on the notes primarily because of negative
migration in the credit quality of the underlying collateral since
the ratings were issued in September 2006.

Based on the Nov. 3, 2008, monthly trustee report, 9.07%
($35.48 million) of the total securities in the underlying
collateral pool have ratings of 'CCC+' and below, up from 2.79%
($10.80 million) as of September 2006.  Furthermore, based on the
most recent trustee report, the ratings on 8.00% of the collateral
are currently on CreditWatch with negative implications.

      Ratings Lowered and Removed from Creditwatch Negative
                     Baker Street CLO II Ltd.

                             Rating
                             ------
                Class     To        From
                -----     --        ----
                D         BB+       BBB/Watch Neg
                E         B+        BB/Watch Neg

  Transaction Information
  -----------------------
Issuer:              Baker Street CLO II Ltd.
Co-issuer:           Baker Street CLO II Corp.
Collateral manager:  Seix Advisors
Underwriter:         SunTrust Capital Markets Inc.
Trustee:             JPMorgan Chase Bank N.A.
Transaction type:    Cash flow CLO



===============
C O L O M B I A
===============

ECOPETROL: Inks Exploration Deal With StatoilHydro
--------------------------------------------------
Ecopetrol S. A. entered into a farm-in agreement with Norwegian
StatoilHydro to drill three exploratory wells in deep waters of
the Gulf ofMexico (GoM) in the United States, during the next two
years.

The agreement provides that Ecopetrol will have interests ranging
from 20% to 30% in the prospects.  Preliminary evaluations
indicate that the initial investment of Ecopetrol could exceed
US$160 million.

In addition, Ecopetrol and StatoilHydro have agreed to undertake a
process for maturing several prospects during the next seven
years.

The agreement enables Ecopetrol to consolidate its
internationalization process, particularly in the GoM (United
States), where it is already present in exploration blocks with
its joint venture partners Shell, ENI and BP, and in the
production of the K2 field, with Anadarko as the operator.

Besides increasing its presence in one of the most important oil
and gas production regions in the world, this alliance enables
Ecopetrol to diversify its exploratory risk and to acquire
knowledge and technology for development of future deep water
projects.

StatoilHydro currently has holdings in 415 blocks in the Gulf of
Mexico, where it operates 195 of them.  It is a leading company in
the use of deepwater technologies.  Furthermore, StatoilHydro is
present in 40 countries,with an average production of 1.7 million
barrels of oil equivalent per day(mmboed).

                       About Ecopetrol S.A.

Ecopetrol S.A. -- http://www.ecopetrol.com.co.-- is the largest
company in Colombia as measured by revenue, profit, assets and
shareholders' equity.  The Company is Colombia's only vertically
integrated crude oil and natural gas company with operations in
Colombia and overseas.  Ecopetrol is one of the 40 largest
petroleum companies in the world and one of the four principal
petroleum companies in Latin America.  It is majority owned by the
Republic of Colombia and its shares trade on the Bolsa de Valores
de Colombia S.A. (BVC) under the symbol ECOPETROL.  The Company
divides its operations into four business segments that include
exploration and production; transportation; refining; and
marketing of crude oil, natural gas and refined-products.

                         *     *     *

As reported by the Troubled Company Reporter-Latin America on
November 12, 2008, Fitch Ratings affirmed Ecopetrol S.A.'s
foreign and local currency issuer default ratings at 'BB+' and
'BBB-', respectively.  The Rating Outlook is Stable.


* COLOMBIA: To Delay COP3 Trillion Spending Budget
--------------------------------------------------
The Republic of Colombia will "delay" 3 trillion pesos (US$1.4
billion) in spending from the 2009 budget aiming to bolster
investor confidence amid a global economic crisis, Helen Murphy of
Bloomberg News reports.

Citing Finance Minister Oscar Ivan Zuluaga, the report relates the
spending delay, representing 2.2% of the 140.5 trillion-peso
budget, may be temporary and won't affect spending on social
programs, security or infrastructure.

According to the report, the government's plan will effectively
reduce the budget to 137.5 trillion pesos with the delay of 1.5
trillion pesos in investment spending and another 1.5 trillion
pesos in unspecified spending.

Mr. Zuluaga, the report notes, said the government will reevaluate
the delay in light of how much it collects in taxes next year and
the strength of the economy in the coming months.

President Alvaro Uribe, serving a second four-year term, is
seeking to contain the government's budget deficit while
increasing social spending and access to health care for the
poorest Colombians, the report says.

The Republic of Colombia is a country in northwestern South
America.  It is the 26th largest nation in the world and the
fourth largest in South America (after Brazil, Argentina, and
Peru), with an area more than twice that of France.

According to Moody's website, the company continues to carry
foreign currency rating of Ba1 with stable outlook.



===================================
D O M I N I C A N   R E P U B L I C
===================================

CAP CANA: Fitch Downgrades Ratings on $250 Mil. Notes to 'CCC/RR4'
------------------------------------------------------------------
Fitch Ratings has downgraded the rating on Cap Cana, S.A.'s
$250 million senior secured notes (due 2013) from 'CCC/RR4' to
'CC/RR4'.  The rating remains on Rating Watch Negative due to an
evolving situation.  The action follows an announcement of an
expected restructuring to the 2013 notes.

Cap Cana recently completed a restructuring on its $100 million
bridge loan facility that was due on Nov. 19, 2008.  Regarding the
$250 million outstanding of 2013 notes, Cap Cana is offering three
different restructuring alternatives to current holders of the
notes:

  -- An offer to repurchase up to $100 million at a price of 33.4
     cents on the dollar plus accrued interest;

  -- An exchanged note with an expected two year maturity
     extension along with an increased collateral package and an
     increased coupon;

  -- An exchange for certificates of a liquidating trust where
     holders will be repaid through the sale of certain Cap Cana
     properties.

Cap Cana is a 30,000 acre luxury, second-home real estate project
under development and is located on the easternmost tip of the
Dominican Republic.



=============
E C U A D O R
=============

* ECUADOR: To Sell US$1.5 Bil. Gov't Bonds in Domestic Market
-------------------------------------------------------------
Ecuador plans to sell as much as US$1.5 billion in government
bonds in
the domestic market, Stephan Kueffner of Bloomberg News reports,
citing Pedro Solines, head of Ecuador's securities regulator.

The report relates Mr. Solines, in a public notice published in
Ecuadorean newspapers, said the government plans to use the
proceeds of the bond sale for investments through the end of next
year.

According to the report, Ecuador's Planning Ministry approved the
sale on Dec. 3, after the government invoked a 30-day grace period
and skipped an interest payment on its 2012 bonds.

As reported by the Troubled Company Reporter - Latin America on
December 17, 2008, Fitch Ratings has downgraded Ecuador's long-
term foreign currency Issuer Default Rating (IDR) to 'RD' from
'CCC' following the expiration of the grace period for the coupon
payment on the 2012 global bonds that was due on Nov. 15 and the
government's announcement that it will selectively default on all
global bonds.  The short-term foreign currency rating was
downgraded to 'D' from 'C'.  The country ceiling remains at 'B-'.



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

GOODYEAR JAMAICA: Liquidation Prompts Shares Trading Halt
---------------------------------------------------------
Radio Jamaica reports that the Jamaica Stock Exchange (JSE) has
suspended trading of Goodyear Jamaica Limited's shares.

According to the report, the JSE on Monday said that at an
extraordinary general meeting of Goodyear Jamaica on Friday,
members voted unanimously to voluntarily wind up the company and
appoint liquidators.

The liquidators applied to the JSE for suspension of trading in
the shares, which was approved by JSE Chairman Curtis Martin under
the JSE's Rule 411, the report says.

The suspension, the report notes, is based on legal advice given
to the JSE regarding the status of a company in voluntary
liquidation and the need for the appointed liquidator to approve
any changes in share ownership subsequent to the passed
resolution.

Tire Review Online relates that the Goodyear subsidiary, which
ceased the local manufacture of tyres some 11 years ago, has faced
an uphill battle of late.  According to the report, a 65% dip in
profits during 2006 was followed on Jan. 10, 2007 by a fire that
badly damaged the company's distribution centre in St. Andrew.
Also, the report says Goodyear Jamaica's equity is now valued at
US$467.9 million (GBP4.1 million), down from US$471 million at
December 2007.

Goodyear Jamaica Limited (JAM:GYR) -- http://www.goodyear.com.jm/
-- is engaged in the importation and distribution of tires, tubes
and related rubber products, all of which are imported from
related parties.  Its product portfolio includes tires for
automobiles, light trucks, commercial trucks and farm vehicles.
In addition to Goodyear tires, the Company produces tires under
the Kelly brand name.  The Company's operations are focused in two
geographic segments: Jamaica and the Caribbean, and Central and
South America.  The Company is a 60% subsidiary of the Goodyear
Tire & Rubber Company, in Akron, Ohio, United States.



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

KANSAS CITY SOUTHERN: Signs Freight Rail Traffic Deal w/ U.S. DOT
-----------------------------------------------------------------
U.S. Transportation Secretary Mary E. Peters said Kansas City
Southern has signed a deal with U.S. Department of Transportation
to improve cross-border goods movement to and from the United
States and Mexico by providing an alternate route for freight rail
traffic.

The East Loop Bypass project proposes a new rail bridge east of
Laredo, Texas, continuing across the border and south into Mexico.

"Border congestion creates an unnecessary obstacle to efficient
trade with our international partners.  Providing alternative
routes for freight transport is good for the economy and the
American people, Secretary Peters said.

The project is part of the Departments Transportation Border
Congestion Relief Program designed to facilitate and accelerate
transportation-related capacity and operational improvements at
border crossings.  Other projects include the Otay Mesa East Port
of Entry project and the Cascade Gateway Expanded Cross-border
Advanced Traveler Information System project in Blaine,
Washington.

The new railroad bridge and East Loop Bypass project would improve
freight movement dramatically in the region by increasing rail
transport capacity at the Laredo gateway and diverting freight
vehicular traffic onto rail and off congested roads.  The project
also would enhance safety by eliminating numerous highway-rail
grade crossings.

This project is a great example of a public-private partnership
that will create more opportunity for Americas businesses while
simultaneously improving safety, said Federal Highway
Administrator Tom Madison.

Secretary Peters also added that as part of the congestion relief
program, the project would receive priority access to many of the
Departments assistance programs, including loans and other
innovative financing mechanisms.

Headquartered in Kansas City, Missouri, Kansas City Southern
(NYSE:KSU) -- http://www.kcsouthern.com/-- is a transportation
holding company that has railroad investments in the U.S.,
Mexico and Panama.  Its primary U.S. holding includes KCSR,
serving the central and south central U.S.  Its international
holdings include Kansas City Southern de Mexico, serving
northeastern and central Mexico and the port cities of Lazaro
Cardenas, Tampico and Veracruz, and a 50% interest in Panama
Canal Railway Company, providing ocean-to-ocean freight and
passenger service along the Panama Canal. KCS' North American
rail holdings and strategic alliances are primary components of
a NAFTA Railway system, linking the commercial and industrial
centers of the U.S., Canada and Mexico.

                           *     *     *

Standard & Poor's Ratings Services assigned its 'BB-' rating to
Kansas City Southern Railway Co.'s US$275 million senior
unsecured debt due 2015, one notch higher than the corporate
credit rating on parent company Kansas City Southern.  S&P also
assigned a recovery rating of '2' to the notes, indicating that
lenders can expect substantial (70%-90%) recovery in the event
of a payment default.  The notes are guaranteed by Kansas City
Southern.  S&P have affirmed its 'B+' long-term corporate credit
on Kansas City Southern.


KEY PLASTICS: Taps Chanin Capital as Financial Advisors
-------------------------------------------------------
Key Plastics LLC and Key Plastics Finance Corp. ask the United
States Bankruptcy Court for the District of Delaware for
permission to employ Chanin Capital Partners LLC as their
financial advisors.

The firm is expected to:

  a) evaluate the Debtors' potential debt capacity in light of
     their projected cash flows;

  b) assist in determining a capital structure for the Debtors;

  c) assist in the determination of a range of values for the
     Debtors on a going concern basis;

  d) render financial advice to the Debtors and participate in
     meetings or negotiations with stakeholders, ratings
     agencies, or other appropriate parties in connection with
     the Chapter 11 cases;

  e) advise the Debtors on the timing, nature, and terms of new
     securities, other consideration or other inducements to be
     offered pursuant to the Chapter 11 cases;

  f) assist the Debtors in identifying and evaluating and
     obtaining potential financing including debtor in possession
     financing, contacting potential sources of capital, as the
     Debtors may designate, and assist the Debtors in
     implementing the financing; and

  g) provide testimony, as necessary, with respect to matters on
     which the firm has been engaged to advise the Debtors in any
     proceeding before the Court.

The firm will be paid $115,000 per month and $1,000,000 in
restructuring fee upon consummation of a restructuring.

Brian J. Cullen, Esq., a managing director at the firm, assures
that the firm does not hold any interests adverse to the Debtors'
estate and is a "disinterested person" as defined in Section
101(14) of the Bankruptcy Code.

Headquartered in Northville, Michigan, Key Plastics LLC aka Key
Plastics Technology LLC -- http://www.keyplastics.com-- supply
plastic components to the automotive industry.  The Debtors have
24 manufacturing facilities located in the United States, Canada,
Mexico, Germany, Portugal, Spain, the Czech Republic, France,
Slovakia, Italy and China.  According to Bloomberg News, the
company filed for bankruptcy in March 23, 2000, in Detroit and
emerged a year later under the ownership of private-equity firm
Carlyle, Bloomberg said.  The company and Key Plastics Finance
Corp. filed for Chapter 11 protection on December 15, 2008 (Bankr.
D. Del. Case Nos. 08-13326 and 08-13324).  Mark D. Collins, Esq.,
Richards Layton & Finger PA, represents the Debtors in their
restructuring efforts.  When the Debtors filed for protection from
their creditors, they listed assets and debts between $100 million
to $500 million each.


MUNICIPALITY OF JIUTEPEC: Moody's Puts Ba2 Rating on Global Scale
-----------------------------------------------------------------
Moody's assigned first time issuer ratings of A2.mx (Mexican
National Scale) and Ba2 (Global Scale) to the Municipality of
Jiutepec, Morelos.  The outlook is stable.  The ratings are based
on the municipality's adequate financial performance in recent
years, low debt levels and solid economic base.  The ratings also
reflect the municipality's weak liquidity position.

Over the period 2003-2007, Jiutepec has shown adequate financial
performance marked by three financial surpluses and two financial
deficits in 2004 and 2005.  Financial deficits were driven by
increases in capital spending and were financed with long term
debt (2004) and increasing liabilities (2005).

The municipality's operating margins for the same period have been
positive and equivalent on average to 14% of total revenues, a
figure slightly above the average of other Mexican municipalities
rated by Moody's (11%).  In 2007 operating margins were pressured
by non-recurrent increases in personnel and services costs, which
caused a decline in this indicator from 18% in 2006 to 4% in 2007.
If the municipality had not incurred these non-recurrent
expenditures, operating margins would have declined to 8% of total
revenues.

Jiutepec's debt levels are modest and equivalent to 12% of total
revenues, below the average of other Mexican municipalities rated
by Moody's (17%).  The municipality's total direct debt comprise a
10 year loan acquired in 2004 to finance the purchase of land
donated to the State University.  The municipality also pays debt
service on a small five year loan granted to its water company
(Sistema de Conservacion de Agua Potable y Saneamiento de
Jiutepec).  Debt service costs are low at 3% of total revenues in
2007, down from 5% in 2003.

The municipality has a negative liquidity position due to the
accumulation of short-term liabilities with suppliers.  Liquidity
(measured as cash and equivalents less current liabilities) has
declined to negative,19% of total revenues in 2007 from negative
7% in 2003 owing to a decision to record some liabilities that
were accumulated in past years .

Jiutepec is the most important municipality of the State of
Morelos in terms of its contribution to the State's gross
production (50%) and has an estimated population of 180,000
inhabitants.  The municipality is home to Ciudad Industrial del
Valle de Cuernavaca an industrial complex for companies in the
automotive and pharmaceutical industries, among others.


PRECISION PARTS: Organizational Meeting to Form Panel on Dec. 23
----------------------------------------------------------------
Roberta A. DeAngelis, the Acting United States Trustee for
Region 3, will hold an organizational meeting on December 23,
2008, at 11:00 a.m. in the bankruptcy cases of Precision Parts
International Services Corp., PPI Holdings Inc and their
affiliates.  The meeting will be held at J. Caleb Boggs Federal
Building, 844 King Street, Room 5209, in Wilmington, Delaware.

The sole purpose of the meeting will be to form a committee or
committees of unsecured creditors in the Debtor's cases.

The organizational meeting is not the meeting of creditors
pursuant to Section 341 of the Bankruptcy Code.  A representative
of the Debtor, however, may attend the Organizational Meeting, and
provide background information regarding the bankruptcy cases.

To increase participation in the Chapter 11 proceeding, Section
1102 of the Bankruptcy Code requires that the United States
Trustee appoint a committee of unsecured creditors as soon as
practicable.  The Committee ordinarily consists of the persons,
willing to serve, that hold the seven largest unsecured claims
against the debtor of the kinds represented on the committee.
Section 1103 of the Bankruptcy Code provides that the Committee
may consult with the debtor, investigate the debtor and its
business operations and participate in the formulation of a plan
of reorganization.  The Committee may also perform other services
as are in the interests of the unsecured creditors whom it
represents.

Headquartered in Rochester Hills, Michigan, Precision Parts
International Services Corp. -- http://www.precisionparts.com--
sells products to major north American automotive and non-
automotive original equipment manufacturers and Tier 1 and 2
suppliers.  The Debtors operate six manufacturing facilities
throughout north America, including a facility in Mexico operated
on the Debtors' behalf by Intermex Manufactura de Chihuahua under
a shelter and logistics agreement.

The Debtors' operations consist of two distinct lines of business:
MPI, which performs fineblanking work and conventional metal
stamping, as well as a range of value-added finishing operations,
and Skill which performs conventional metal stamping, as well as a
range of assembly and value-added finishing operations.

Four of the Debtors are holding companies that have no employees
and are not involved in the Debtors' day-to-day operations: PPI
Holdings, Inc.; PPI Sub-Holdings, Inc.; MPI International
Holdings, Inc.; and Skill Tool & Die Holdings Corp.
Bankruptcy Case No.: 08-13291

The company and eight of its affiliates filed for Chapter 11
protection on Dec. 12, 2008 (Bankr. D. Del. Lead Case No.
08-13291).  David M. Fournier, Esq., at Pepper Hamilton LLP,
represents the Debtors in their restructuring efforts.  The
Debtors proposed Alvarez & Marsal North America LLC as financial
advisor and Kurtzman Carson Consultants LLC as notice, claims and
balloting agent.  When the Debtors filed for protection from their
creditors, they listed assets between $100 million to $500 million
each.

According to Bloomberg News, the company is at least the 10th
auto-parts maker sought Chapter 11 protection from its creditors
this year.

                            ***********

Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-LA constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-LA editor holds
some position in the issuers' public debt and equity securities
about which we report.

Tuesday's edition of the TCR-LA features a list of companies
with insolvent balance sheets obtained by our editors based on
the latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR-LA. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

                            ***********


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.  Marie Therese V. Profetana, Marites O. Claro, Joy
A. Agravente, Pius Xerxes V. Tovilla, Rousel Elaine C. Tumanda,
Valerie C. Udtuhan, 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 prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Christopher Beard at 240/629-3300.


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