/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090216.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 Monday, February 16, 2009, Vol. 9, No. 32 Headlines A R G E N T I N A ALTO PALERMO: S&P Cuts Local Currency Corp. Credit Rating to 'B-' ALTO PARANA: S&P Cuts Corporate Credit Rating to 'BB-' A. SINGER E HIJOS: Proofs of Claim Verification Due on April 10 CARPENTER COMERCIO: Proofs of Claim Verification Due on April 6 CASAF SA: Proofs of Claim Verification Due on April 22 CIA. DE TRANSPORTE: S&P Cuts Local Curr. Corp. Credit Rating to B- CENTRO DE DIA: Proofs of Claim Verification Due on April 6 CLINICA PRIVADA: Proofs of Claim Verification Due on March 12 CONISEHT SRL: Proofs of Claim Verification Due on April 2 ELECTRICIDAD ARGENTINA: S&P Junks Corporate Credit Rating EMPRESA DISTRIBUIDORA: S&P Cuts Corporate Credit Rating to 'B-' ESTABLECIMIENTO METALURGICO: Claim Verification Due on April 20 HAMBUR SUR: Proofs of Claim Verification Due on March 31 HIDROELECTRICA PIEDRA: S&P Cuts Corporate Credit Rating to 'B-' IRAS INVERSIONES: S&P Cuts Local Cur. Corp. Credit Rating to 'B-' LOMA NEGRA: S&P Cuts Local Currency Corporate Credit Rating to 'B' PAN AMERICAN: S&P Cuts Corporate Credit Rating to 'B+' PETROBRAS ENERGIA: S&P Cuts Corporate Credit Rating to B+ From BB SISTEMAS INTEGRALES: Proofs of Claim Verification Due on May 11 TELECOM ARGENTINA: S&P Cuts For. Curr. Corp. Credit Rating to B- TELECOM PERSONAL: S&P Cuts Local Curr. Corp. Credit Rating to 'B' TELEFONICA DE ARGENTINA: S&P Cuts Corporate Credit Rating to 'B-' TRANSENER SA: S&P Cuts Local Currency Corp. Credit Rating to 'B-' TRANSPORTADORA DE GAS: S&P Cuts Corporate Credit Rating to 'B-' YPF SA: S&P Cuts Corporate Credit Ratings to 'B+' From 'BB' B E R M U D A XL CAPITAL: To Slash 15% Workforce This Year to Cut Costs SCOTTISH RE: Chief Financial Officer Steps Down B R A Z I L BANCO NOSSA: S&P Assigns 'BB' Global Counterparty Credit Rating EMBRATEL: To Expand DTH Offering to 75 Cities GERDAU SA: Share Price Estimate Cut by 42% at Brascan Corretora C A Y M A N I S L A N D S ABZ ASSETX: Sole Shareholder Receives Wind-Up Report APOLLO SPIRES: Members Receive Wind-Up Report D.B. ZWIRN: Members Receive Wind-Up Report DRAKE INVESTMENT: Members Receive Wind-Up Report ENH PARTNERS: Sole Shareholder Receives Wind-Up Report FIRST COMMERCE: Members Receive Wind-Up Report KATONAH II: Members Receive Wind-Up Report KITTONA HOLDINGS: Shareholders Receive Wind-Up Report LIFE SCIENCE: Sole Shareholder Receives Wind-Up Report LIFE SCIENCE ET AL: Shareholder Receives Wind-Up Report MURJAN LIMITED: Members Receive Wind-Up Report MURJAN 2: Members Receive Wind-Up Report MURJAN 3: Members Receive Wind-Up Report OTTIMO FUNDING: Shareholders Receive Wind-Up Report PLATINUM CAPITAL: Shareholder Receives Wind-Up Report PRINCETOWN PHOTONICS: Shareholder Receives Wind-Up Report SIGNUM SAPPHIRE: Members Receive Wind-Up Report TATRONICS HOLDINGS: Shareholders Receive Wind-Up Report WAKELAND INVESTMENTS: Sole Shareholder Receives Wind-Up Report C O S T A R I C A * Fitch Affirms Costa Rica's Issuer Default Rating to 'BB+' T R I N I D A D & T O B A G O CL FINANCIAL: Angostura Unit Won't be Affected by Gov't Bailout CL FINANCIAL: CIBC Eyes Company's 55% Stake in Republic Bank V E N E Z U E L A PDVSA: Joint Venture Plan With Petrobras Reaches Impasse PDVSA: Will Not Reduce Workforce Amid Global Crisis X X X X X X X X * CARIBBEAN ISLAND: Four Seasons Extends Closure Until October 31 * BOND PRICING: For the Week February 9 – February 13, 2009 - - - - - ================= A R G E N T I N A ================= ALTO PALERMO: S&P Cuts Local Currency Corp. Credit Rating to 'B-' ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered or affirmed the global scale ratings on 15 Argentine entities. Some of these ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 5, 2008. The outlooks on all ratings are stable. "The actions followed a comprehensive review of the domestic operating environment for corporate entities," said Standard & Poor's credit analyst Pablo Lutereau. "We also considered the impact of the global economic slowdown on domestic economic activity, the availability of refinancing sources, and the outlook for the relevant industries. And S&P assessed these entities' ability and willingness to timely honor their foreign exchange obligations, particularly those contracted abroad in case of a potential government intervention in the foreign-exchange market." In S&P's opinion, the elimination of the private pension system at the end of 2008, the amendment to export repatriation requirements, and the regulators' assumption of broad discretion in allowing tariff increases have harmed the economic and business environment, which S&P refer to broadly as "country risk" and now see at levels similar to the sovereign's credit quality, now rated at 'B-'. As a consequence, S&P believes that the corporate sector in Argentina now faces tougher challenges than it did before and that overall credit quality has weakened due to higher government intervention; lower financial flexibility (and more dependence on discretionary government agencies after the renationalization of the private pension system; reduced incentives for parent support as the rules of the game in the country become more uncertain; cash flow volatility due to industry-specific factors; countrywide factors and the impact of the economic slowdown in the country; and increasing refinancing risks. All of these factors affect, in varying degrees, both the local and foreign currency ratings on Argentine companies. While the foreign currency rating reflects S&P's opinion of an obligor's capacity to meet all financial obligations, the local currency rating is a current opinion of an obligor's overall capacity to generate sufficient local-currency resources to meet all its financial obligations (both local and foreign currency), absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Consequently, both the local and foreign currency ratings are affected by S&P's view of country risk, but the foreign currency rating is further affected by S&P's assessment of transfer and convertibility risk. The T&C assessment for Argentina is currently 'B-'. The downgrades on the local currency ratings reflect S&P's perception of the weaker economic environment for corporations operating in Argentina that has led to a deterioration of their overall credit quality and now challenges their prospects. Among the dominant negative factors S&P include higher political and regulatory risks, the impact of the global economic slowdown on domestic activity, and contracted credit markets that significantly narrow the ability of companies to refinance their obligations. S&P believes that companies with local currency ratings above the global scale sovereign rating on the Republic of Argentina (B-/Stable/C) would be able to generate sufficient local-currency resources to meet all their financial obligations, both local- and foreign-currency, under a severe sovereign default scenario, absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Such a scenario would include a significant contraction of the GDP, a strong devaluation of the peso, rising inflation, an inability to fully pass through increases in costs to prices, and a lack of new financing. The downgrades on the foreign currency ratings also incorporate S&P's perception of a higher probability that the Argentine government restricts access to the foreign exchange needed to pay debt service in foreign obligations (T&C risk). In S&P's opinion, companies with foreign-currency ratings remaining above S&P's T&C risk assessment for the country are partially insulated from T&C risk, given certain mitigating factors. Those factors are mainly some or most of these: substantial foreign currency generation (generated by exports with proceeds that can be kept abroad); substantial foreign currency generation (due to foreign operations); the preferred export repatriation regime requirement granted to Argentine oil and gas companies, which allowed them to access offshore cash during the 2001-2002 crisis in Argentina; substantial offshore liquidity, which S&P believes will be maintained as such; moderate leverage; and the existence of implicit parent support or formal parent guarantees. Ratings List Ratings Lowered Or Affirmed; Some Removed From Watch Alto Palermo S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Alto Parana S.A. To From -- ---- Corporate Credit Rating BB-/Stable/-- BB/Watch Neg/-- Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Electricidad Argentina S.A. (EASA) To From -- ---- Corporate Credit Rating CCC/Stable/-- B-/Watch Neg/-- Empresa Distribuidora Y Comercializadora Norte S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Hidroelectrica Piedra del Aguila S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- IRSA Inversiones y Representaciones S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Loma Negra C.I.A.S.A. Corporate Credit Rating To From -- ---- Foreign Currency B/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Pan American Energy LLC To From -- ---- Corporate Credit Rating B+/Stable/-- BB-/Watch Neg/-- Petrobras Energia S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Telecom Argentina S.A. Telecom Personal S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Telefonica de Argentina S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Transportadora de Gas del Sur S.A. (TGS) Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B+/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- YPF S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Local Currency B+/Stable/-- BB/Watch Neg/-- ALTO PARANA: S&P Cuts Corporate Credit Rating to 'BB-' ------------------------------------------------------ Standard & Poor's Ratings Services said that it lowered or affirmed the global scale ratings on 15 Argentine entities. Some of these ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 5, 2008. The outlooks on all ratings are stable. "The actions followed a comprehensive review of the domestic operating environment for corporate entities," said Standard & Poor's credit analyst Pablo Lutereau. "We also considered the impact of the global economic slowdown on domestic economic activity, the availability of refinancing sources, and the outlook for the relevant industries. And S&P assessed these entities' ability and willingness to timely honor their foreign exchange obligations, particularly those contracted abroad in case of a potential government intervention in the foreign-exchange market." In S&P's opinion, the elimination of the private pension system at the end of 2008, the amendment to export repatriation requirements, and the regulators' assumption of broad discretion in allowing tariff increases have harmed the economic and business environment, which S&P refer to broadly as "country risk" and now see at levels similar to the sovereign's credit quality, now rated at 'B-'. As a consequence, S&P believes that the corporate sector in Argentina now faces tougher challenges than it did before and that overall credit quality has weakened due to higher government intervention; lower financial flexibility (and more dependence on discretionary government agencies after the renationalization of the private pension system; reduced incentives for parent support as the rules of the game in the country become more uncertain; cash flow volatility due to industry-specific factors; countrywide factors and the impact of the economic slowdown in the country; and increasing refinancing risks. All of these factors affect, in varying degrees, both the local and foreign currency ratings on Argentine companies. While the foreign currency rating reflects S&P's opinion of an obligor's capacity to meet all financial obligations, the local currency rating is a current opinion of an obligor's overall capacity to generate sufficient local-currency resources to meet all its financial obligations (both local and foreign currency), absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Consequently, both the local and foreign currency ratings are affected by S&P's view of country risk, but the foreign currency rating is further affected by S&P's assessment of transfer and convertibility risk. The T&C assessment for Argentina is currently 'B-'. The downgrades on the local currency ratings reflect S&P's perception of the weaker economic environment for corporations operating in Argentina that has led to a deterioration of their overall credit quality and now challenges their prospects. Among the dominant negative factors S&P include higher political and regulatory risks, the impact of the global economic slowdown on domestic activity, and contracted credit markets that significantly narrow the ability of companies to refinance their obligations. S&P believes that companies with local currency ratings above the global scale sovereign rating on the Republic of Argentina (B-/Stable/C) would be able to generate sufficient local-currency resources to meet all their financial obligations, both local- and foreign-currency, under a severe sovereign default scenario, absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Such a scenario would include a significant contraction of the GDP, a strong devaluation of the peso, rising inflation, an inability to fully pass through increases in costs to prices, and a lack of new financing. The downgrades on the foreign currency ratings also incorporate S&P's perception of a higher probability that the Argentine government restricts access to the foreign exchange needed to pay debt service in foreign obligations (T&C risk). In S&P's opinion, companies with foreign-currency ratings remaining above S&P's T&C risk assessment for the country are partially insulated from T&C risk, given certain mitigating factors. Those factors are mainly some or most of these: substantial foreign currency generation (generated by exports with proceeds that can be kept abroad); substantial foreign currency generation (due to foreign operations); the preferred export repatriation regime requirement granted to Argentine oil and gas companies, which allowed them to access offshore cash during the 2001-2002 crisis in Argentina; substantial offshore liquidity, which S&P believes will be maintained as such; moderate leverage; and the existence of implicit parent support or formal parent guarantees. Ratings List Ratings Lowered Or Affirmed; Some Removed From Watch Alto Palermo S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Alto Parana S.A. To From -- ---- Corporate Credit Rating BB-/Stable/-- BB/Watch Neg/-- Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Electricidad Argentina S.A. (EASA) To From -- ---- Corporate Credit Rating CCC/Stable/-- B-/Watch Neg/-- Empresa Distribuidora Y Comercializadora Norte S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Hidroelectrica Piedra del Aguila S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- IRSA Inversiones y Representaciones S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Loma Negra C.I.A.S.A. Corporate Credit Rating To From -- ---- Foreign Currency B/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Pan American Energy LLC To From -- ---- Corporate Credit Rating B+/Stable/-- BB-/Watch Neg/-- Petrobras Energia S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Telecom Argentina S.A. Telecom Personal S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Telefonica de Argentina S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Transportadora de Gas del Sur S.A. (TGS) Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B+/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- YPF S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Local Currency B+/Stable/-- BB/Watch Neg/-- A. SINGER E HIJOS: Proofs of Claim Verification Due on April 10 --------------------------------------------------------------- The court-appointed trustee for A. Singer e Hijos S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until April 10, 2009. The trustee will present the validated claims in court as individual reports on May 26, 2009. 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 the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court on July 7, 2009. CARPENTER COMERCIO: Proofs of Claim Verification Due on April 6 --------------------------------------------------------------- The court-appointed trustee for Carpenter Comercio Exterior S.R.L.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until April 6, 2009. The trustee will present the validated claims in court as individual reports on May 21, 2009. 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 the company and its creditors. A general report that contains an audit of the company's accounting and banking records will be submitted in court on July 6, 2009. CASAF SA: Proofs of Claim Verification Due on April 22 ------------------------------------------------------ The court-appointed trustee for Casaf S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until April 22, 2009. The trustee will present the validated claims in court as individual reports on June 5, 2009. 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 the company and its creditors. A general report that contains an audit of the company's accounting and banking records will be submitted in court on July 20, 2009. CIA. DE TRANSPORTE: S&P Cuts Local Curr. Corp. Credit Rating to B- ------------------------------------------------------------------ Standard & Poor's Ratings Services said that it lowered or affirmed the global scale ratings on 15 Argentine entities. Some of these ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 5, 2008. The outlooks on all ratings are stable. "The actions followed a comprehensive review of the domestic operating environment for corporate entities," said Standard & Poor's credit analyst Pablo Lutereau. "We also considered the impact of the global economic slowdown on domestic economic activity, the availability of refinancing sources, and the outlook for the relevant industries. And S&P assessed these entities' ability and willingness to timely honor their foreign exchange obligations, particularly those contracted abroad in case of a potential government intervention in the foreign-exchange market." In S&P's opinion, the elimination of the private pension system at the end of 2008, the amendment to export repatriation requirements, and the regulators' assumption of broad discretion in allowing tariff increases have harmed the economic and business environment, which S&P refer to broadly as "country risk" and now see at levels similar to the sovereign's credit quality, now rated at 'B-'. As a consequence, S&P believes that the corporate sector in Argentina now faces tougher challenges than it did before and that overall credit quality has weakened due to higher government intervention; lower financial flexibility (and more dependence on discretionary government agencies after the renationalization of the private pension system; reduced incentives for parent support as the rules of the game in the country become more uncertain; cash flow volatility due to industry-specific factors; countrywide factors and the impact of the economic slowdown in the country; and increasing refinancing risks. All of these factors affect, in varying degrees, both the local and foreign currency ratings on Argentine companies. While the foreign currency rating reflects S&P's opinion of an obligor's capacity to meet all financial obligations, the local currency rating is a current opinion of an obligor's overall capacity to generate sufficient local-currency resources to meet all its financial obligations (both local and foreign currency), absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Consequently, both the local and foreign currency ratings are affected by S&P's view of country risk, but the foreign currency rating is further affected by S&P's assessment of transfer and convertibility risk. The T&C assessment for Argentina is currently 'B-'. The downgrades on the local currency ratings reflect S&P's perception of the weaker economic environment for corporations operating in Argentina that has led to a deterioration of their overall credit quality and now challenges their prospects. Among the dominant negative factors S&P include higher political and regulatory risks, the impact of the global economic slowdown on domestic activity, and contracted credit markets that significantly narrow the ability of companies to refinance their obligations. S&P believes that companies with local currency ratings above the global scale sovereign rating on the Republic of Argentina (B-/Stable/C) would be able to generate sufficient local-currency resources to meet all their financial obligations, both local- and foreign-currency, under a severe sovereign default scenario, absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Such a scenario would include a significant contraction of the GDP, a strong devaluation of the peso, rising inflation, an inability to fully pass through increases in costs to prices, and a lack of new financing. The downgrades on the foreign currency ratings also incorporate S&P's perception of a higher probability that the Argentine government restricts access to the foreign exchange needed to pay debt service in foreign obligations (T&C risk). In S&P's opinion, companies with foreign-currency ratings remaining above S&P's T&C risk assessment for the country are partially insulated from T&C risk, given certain mitigating factors. Those factors are mainly some or most of these: substantial foreign currency generation (generated by exports with proceeds that can be kept abroad); substantial foreign currency generation (due to foreign operations); the preferred export repatriation regime requirement granted to Argentine oil and gas companies, which allowed them to access offshore cash during the 2001-2002 crisis in Argentina; substantial offshore liquidity, which S&P believes will be maintained as such; moderate leverage; and the existence of implicit parent support or formal parent guarantees. Ratings List Ratings Lowered Or Affirmed; Some Removed From Watch Alto Palermo S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Alto Parana S.A. To From -- ---- Corporate Credit Rating BB-/Stable/-- BB/Watch Neg/-- Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Electricidad Argentina S.A. (EASA) To From -- ---- Corporate Credit Rating CCC/Stable/-- B-/Watch Neg/-- Empresa Distribuidora Y Comercializadora Norte S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Hidroelectrica Piedra del Aguila S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- IRSA Inversiones y Representaciones S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Loma Negra C.I.A.S.A. Corporate Credit Rating To From -- ---- Foreign Currency B/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Pan American Energy LLC To From -- ---- Corporate Credit Rating B+/Stable/-- BB-/Watch Neg/-- Petrobras Energia S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Telecom Argentina S.A. Telecom Personal S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Telefonica de Argentina S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Transportadora de Gas del Sur S.A. (TGS) Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B+/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- YPF S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Local Currency B+/Stable/-- BB/Watch Neg/-- CENTRO DE DIA: Proofs of Claim Verification Due on April 6 ---------------------------------------------------------- The court-appointed trustee for Centro de Dia Alborada S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until April 6, 2009. The trustee will present the validated claims in court as individual reports on May 20, 2009. 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 the company and its creditors. A general report that contains an audit of the company's accounting and banking records will be submitted in court on July 1, 2009. CLINICA PRIVADA: Proofs of Claim Verification Due on March 12 ------------------------------------------------------------- The court-appointed trustee for Clinica Privada Ranelagh S.A.'s reorganization proceedings, will be verifying creditors' proofs of claim until March 12, 2009. The trustee will present the validated claims in court as individual reports on April 30, 2009. 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 the company and its creditors. Inadmissible claims may be subject to appeal in a separate proceeding known as an appeal for reversal. A general report that contains an audit of the company's accounting and banking records will be submitted in court on June 16, 2009. Creditors will vote to ratify the completed settlement plan during the assembly on December 3, 2009. CONISEHT SRL: Proofs of Claim Verification Due on April 2 --------------------------------------------------------- Salomon Wilhelm, the court-appointed trustee for Coniseht S.R.L.'s reorganization proceedings, will be verifying creditors' proofs of claim until April 2, 2009. Mr. Wilhelm will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 24 in Buenos Aires, with the assistance of Clerk No. 47, 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 the company and its creditors. Creditors will vote to ratify the completed settlement plan during the assembly on December 10, 2009. The Trustee can be reached at: Salomon Wilhelm Lavalle 1290 Buenos Aires, Argentina ELECTRICIDAD ARGENTINA: S&P Junks Corporate Credit Rating --------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered or affirmed the global scale ratings on 15 Argentine entities. Some of these ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 5, 2008. The outlooks on all ratings are stable. "The actions followed a comprehensive review of the domestic operating environment for corporate entities," said Standard & Poor's credit analyst Pablo Lutereau. "We also considered the impact of the global economic slowdown on domestic economic activity, the availability of refinancing sources, and the outlook for the relevant industries. And S&P assessed these entities' ability and willingness to timely honor their foreign exchange obligations, particularly those contracted abroad in case of a potential government intervention in the foreign-exchange market." In S&P's opinion, the elimination of the private pension system at the end of 2008, the amendment to export repatriation requirements, and the regulators' assumption of broad discretion in allowing tariff increases have harmed the economic and business environment, which S&P refer to broadly as "country risk" and now see at levels similar to the sovereign's credit quality, now rated at 'B-'. As a consequence, S&P believes that the corporate sector in Argentina now faces tougher challenges than it did before and that overall credit quality has weakened due to higher government intervention; lower financial flexibility (and more dependence on discretionary government agencies after the renationalization of the private pension system; reduced incentives for parent support as the rules of the game in the country become more uncertain; cash flow volatility due to industry-specific factors; countrywide factors and the impact of the economic slowdown in the country; and increasing refinancing risks. All of these factors affect, in varying degrees, both the local and foreign currency ratings on Argentine companies. While the foreign currency rating reflects S&P's opinion of an obligor's capacity to meet all financial obligations, the local currency rating is a current opinion of an obligor's overall capacity to generate sufficient local-currency resources to meet all its financial obligations (both local and foreign currency), absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Consequently, both the local and foreign currency ratings are affected by S&P's view of country risk, but the foreign currency rating is further affected by S&P's assessment of transfer and convertibility risk. The T&C assessment for Argentina is currently 'B-'. The downgrades on the local currency ratings reflect S&P's perception of the weaker economic environment for corporations operating in Argentina that has led to a deterioration of their overall credit quality and now challenges their prospects. Among the dominant negative factors S&P include higher political and regulatory risks, the impact of the global economic slowdown on domestic activity, and contracted credit markets that significantly narrow the ability of companies to refinance their obligations. S&P believes that companies with local currency ratings above the global scale sovereign rating on the Republic of Argentina (B-/Stable/C) would be able to generate sufficient local-currency resources to meet all their financial obligations, both local- and foreign-currency, under a severe sovereign default scenario, absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Such a scenario would include a significant contraction of the GDP, a strong devaluation of the peso, rising inflation, an inability to fully pass through increases in costs to prices, and a lack of new financing. The downgrades on the foreign currency ratings also incorporate S&P's perception of a higher probability that the Argentine government restricts access to the foreign exchange needed to pay debt service in foreign obligations (T&C risk). In S&P's opinion, companies with foreign-currency ratings remaining above S&P's T&C risk assessment for the country are partially insulated from T&C risk, given certain mitigating factors. Those factors are mainly some or most of these: substantial foreign currency generation (generated by exports with proceeds that can be kept abroad); substantial foreign currency generation (due to foreign operations); the preferred export repatriation regime requirement granted to Argentine oil and gas companies, which allowed them to access offshore cash during the 2001-2002 crisis in Argentina; substantial offshore liquidity, which S&P believes will be maintained as such; moderate leverage; and the existence of implicit parent support or formal parent guarantees. Ratings List Ratings Lowered Or Affirmed; Some Removed From Watch Alto Palermo S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Alto Parana S.A. To From -- ---- Corporate Credit Rating BB-/Stable/-- BB/Watch Neg/-- Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Electricidad Argentina S.A. (EASA) To From -- ---- Corporate Credit Rating CCC/Stable/-- B-/Watch Neg/-- Empresa Distribuidora Y Comercializadora Norte S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Hidroelectrica Piedra del Aguila S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- IRSA Inversiones y Representaciones S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Loma Negra C.I.A.S.A. Corporate Credit Rating To From -- ---- Foreign Currency B/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Pan American Energy LLC To From -- ---- Corporate Credit Rating B+/Stable/-- BB-/Watch Neg/-- Petrobras Energia S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Telecom Argentina S.A. Telecom Personal S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Telefonica de Argentina S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Transportadora de Gas del Sur S.A. (TGS) Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B+/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- YPF S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Local Currency B+/Stable/-- BB/Watch Neg/-- EMPRESA DISTRIBUIDORA: S&P Cuts Corporate Credit Rating to 'B-' --------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered or affirmed the global scale ratings on 15 Argentine entities. Some of these ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 5, 2008. The outlooks on all ratings are stable. "The actions followed a comprehensive review of the domestic operating environment for corporate entities," said Standard & Poor's credit analyst Pablo Lutereau. "We also considered the impact of the global economic slowdown on domestic economic activity, the availability of refinancing sources, and the outlook for the relevant industries. And S&P assessed these entities' ability and willingness to timely honor their foreign exchange obligations, particularly those contracted abroad in case of a potential government intervention in the foreign-exchange market." In S&P's opinion, the elimination of the private pension system at the end of 2008, the amendment to export repatriation requirements, and the regulators' assumption of broad discretion in allowing tariff increases have harmed the economic and business environment, which S&P refer to broadly as "country risk" and now see at levels similar to the sovereign's credit quality, now rated at 'B-'. As a consequence, S&P believes that the corporate sector in Argentina now faces tougher challenges than it did before and that overall credit quality has weakened due to higher government intervention; lower financial flexibility (and more dependence on discretionary government agencies after the renationalization of the private pension system; reduced incentives for parent support as the rules of the game in the country become more uncertain; cash flow volatility due to industry-specific factors; countrywide factors and the impact of the economic slowdown in the country; and increasing refinancing risks. All of these factors affect, in varying degrees, both the local and foreign currency ratings on Argentine companies. While the foreign currency rating reflects S&P's opinion of an obligor's capacity to meet all financial obligations, the local currency rating is a current opinion of an obligor's overall capacity to generate sufficient local-currency resources to meet all its financial obligations (both local and foreign currency), absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Consequently, both the local and foreign currency ratings are affected by S&P's view of country risk, but the foreign currency rating is further affected by S&P's assessment of transfer and convertibility risk. The T&C assessment for Argentina is currently 'B-'. The downgrades on the local currency ratings reflect S&P's perception of the weaker economic environment for corporations operating in Argentina that has led to a deterioration of their overall credit quality and now challenges their prospects. Among the dominant negative factors S&P include higher political and regulatory risks, the impact of the global economic slowdown on domestic activity, and contracted credit markets that significantly narrow the ability of companies to refinance their obligations. S&P believes that companies with local currency ratings above the global scale sovereign rating on the Republic of Argentina (B-/Stable/C) would be able to generate sufficient local-currency resources to meet all their financial obligations, both local- and foreign-currency, under a severe sovereign default scenario, absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Such a scenario would include a significant contraction of the GDP, a strong devaluation of the peso, rising inflation, an inability to fully pass through increases in costs to prices, and a lack of new financing. The downgrades on the foreign currency ratings also incorporate S&P's perception of a higher probability that the Argentine government restricts access to the foreign exchange needed to pay debt service in foreign obligations (T&C risk). In S&P's opinion, companies with foreign-currency ratings remaining above S&P's T&C risk assessment for the country are partially insulated from T&C risk, given certain mitigating factors. Those factors are mainly some or most of these: substantial foreign currency generation (generated by exports with proceeds that can be kept abroad); substantial foreign currency generation (due to foreign operations); the preferred export repatriation regime requirement granted to Argentine oil and gas companies, which allowed them to access offshore cash during the 2001-2002 crisis in Argentina; substantial offshore liquidity, which S&P believes will be maintained as such; moderate leverage; and the existence of implicit parent support or formal parent guarantees. Ratings List Ratings Lowered Or Affirmed; Some Removed From Watch Alto Palermo S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Alto Parana S.A. To From -- ---- Corporate Credit Rating BB-/Stable/-- BB/Watch Neg/-- Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Electricidad Argentina S.A. (EASA) To From -- ---- Corporate Credit Rating CCC/Stable/-- B-/Watch Neg/-- Empresa Distribuidora Y Comercializadora Norte S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Hidroelectrica Piedra del Aguila S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- IRSA Inversiones y Representaciones S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Loma Negra C.I.A.S.A. Corporate Credit Rating To From -- ---- Foreign Currency B/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Pan American Energy LLC To From -- ---- Corporate Credit Rating B+/Stable/-- BB-/Watch Neg/-- Petrobras Energia S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Telecom Argentina S.A. Telecom Personal S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Telefonica de Argentina S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Transportadora de Gas del Sur S.A. (TGS) Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B+/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- YPF S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Local Currency B+/Stable/-- BB/Watch Neg/-- ESTABLECIMIENTO METALURGICO: Claim Verification Due on April 20 --------------------------------------------------------------- Maria Denda Valentina, the court-appointed trustee for Establecimiento metalurgico Ando S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until April 20, 2009. Ms. Valentina will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 18 in Buenos Aires, with the assistance of Clerk No. 35, 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 the company and its creditors. The Trustee can be reached at: Maria Denda Valentina Av. de Mayo 1370 Buenos Aires, Argentina HAMBUR SUR: Proofs of Claim Verification Due on March 31 -------------------------------------------------------- The court-appointed trustee for Hambur Sur S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until March 31, 2009. The trustee will present the validated claims in court as individual reports on May 26, 2009. 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 the company and its creditors. A general report that contains an audit of the company's accounting and banking records will be submitted in court on July 8, 2009. HIDROELECTRICA PIEDRA: S&P Cuts Corporate Credit Rating to 'B-' --------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered or affirmed the global scale ratings on 15 Argentine entities. Some of these ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 5, 2008. The outlooks on all ratings are stable. "The actions followed a comprehensive review of the domestic operating environment for corporate entities," said Standard & Poor's credit analyst Pablo Lutereau. "We also considered the impact of the global economic slowdown on domestic economic activity, the availability of refinancing sources, and the outlook for the relevant industries. And S&P assessed these entities' ability and willingness to timely honor their foreign exchange obligations, particularly those contracted abroad in case of a potential government intervention in the foreign-exchange market." In S&P's opinion, the elimination of the private pension system at the end of 2008, the amendment to export repatriation requirements, and the regulators' assumption of broad discretion in allowing tariff increases have harmed the economic and business environment, which S&P refer to broadly as "country risk" and now see at levels similar to the sovereign's credit quality, now rated at 'B-'. As a consequence, S&P believes that the corporate sector in Argentina now faces tougher challenges than it did before and that overall credit quality has weakened due to higher government intervention; lower financial flexibility (and more dependence on discretionary government agencies after the renationalization of the private pension system; reduced incentives for parent support as the rules of the game in the country become more uncertain; cash flow volatility due to industry-specific factors; countrywide factors and the impact of the economic slowdown in the country; and increasing refinancing risks. All of these factors affect, in varying degrees, both the local and foreign currency ratings on Argentine companies. While the foreign currency rating reflects S&P's opinion of an obligor's capacity to meet all financial obligations, the local currency rating is a current opinion of an obligor's overall capacity to generate sufficient local-currency resources to meet all its financial obligations (both local and foreign currency), absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Consequently, both the local and foreign currency ratings are affected by S&P's view of country risk, but the foreign currency rating is further affected by S&P's assessment of transfer and convertibility risk. The T&C assessment for Argentina is currently 'B-'. The downgrades on the local currency ratings reflect S&P's perception of the weaker economic environment for corporations operating in Argentina that has led to a deterioration of their overall credit quality and now challenges their prospects. Among the dominant negative factors S&P include higher political and regulatory risks, the impact of the global economic slowdown on domestic activity, and contracted credit markets that significantly narrow the ability of companies to refinance their obligations. S&P believes that companies with local currency ratings above the global scale sovereign rating on the Republic of Argentina (B-/Stable/C) would be able to generate sufficient local-currency resources to meet all their financial obligations, both local- and foreign-currency, under a severe sovereign default scenario, absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Such a scenario would include a significant contraction of the GDP, a strong devaluation of the peso, rising inflation, an inability to fully pass through increases in costs to prices, and a lack of new financing. The downgrades on the foreign currency ratings also incorporate S&P's perception of a higher probability that the Argentine government restricts access to the foreign exchange needed to pay debt service in foreign obligations (T&C risk). In S&P's opinion, companies with foreign-currency ratings remaining above S&P's T&C risk assessment for the country are partially insulated from T&C risk, given certain mitigating factors. Those factors are mainly some or most of these: substantial foreign currency generation (generated by exports with proceeds that can be kept abroad); substantial foreign currency generation (due to foreign operations); the preferred export repatriation regime requirement granted to Argentine oil and gas companies, which allowed them to access offshore cash during the 2001-2002 crisis in Argentina; substantial offshore liquidity, which S&P believes will be maintained as such; moderate leverage; and the existence of implicit parent support or formal parent guarantees. Ratings List Ratings Lowered Or Affirmed; Some Removed From Watch Alto Palermo S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Alto Parana S.A. To From -- ---- Corporate Credit Rating BB-/Stable/-- BB/Watch Neg/-- Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Electricidad Argentina S.A. (EASA) To From -- ---- Corporate Credit Rating CCC/Stable/-- B-/Watch Neg/-- Empresa Distribuidora Y Comercializadora Norte S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Hidroelectrica Piedra del Aguila S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- IRSA Inversiones y Representaciones S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Loma Negra C.I.A.S.A. Corporate Credit Rating To From -- ---- Foreign Currency B/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Pan American Energy LLC To From -- ---- Corporate Credit Rating B+/Stable/-- BB-/Watch Neg/-- Petrobras Energia S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Telecom Argentina S.A. Telecom Personal S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Telefonica de Argentina S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Transportadora de Gas del Sur S.A. (TGS) Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B+/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- YPF S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Local Currency B+/Stable/-- BB/Watch Neg/-- IRAS INVERSIONES: S&P Cuts Local Cur. Corp. Credit Rating to 'B-' ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered or affirmed the global scale ratings on 15 Argentine entities. Some of these ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 5, 2008. The outlooks on all ratings are stable. "The actions followed a comprehensive review of the domestic operating environment for corporate entities," said Standard & Poor's credit analyst Pablo Lutereau. "We also considered the impact of the global economic slowdown on domestic economic activity, the availability of refinancing sources, and the outlook for the relevant industries. And S&P assessed these entities' ability and willingness to timely honor their foreign exchange obligations, particularly those contracted abroad in case of a potential government intervention in the foreign-exchange market." In S&P's opinion, the elimination of the private pension system at the end of 2008, the amendment to export repatriation requirements, and the regulators' assumption of broad discretion in allowing tariff increases have harmed the economic and business environment, which S&P refer to broadly as "country risk" and now see at levels similar to the sovereign's credit quality, now rated at 'B-'. As a consequence, S&P believes that the corporate sector in Argentina now faces tougher challenges than it did before and that overall credit quality has weakened due to higher government intervention; lower financial flexibility (and more dependence on discretionary government agencies after the renationalization of the private pension system; reduced incentives for parent support as the rules of the game in the country become more uncertain; cash flow volatility due to industry-specific factors; countrywide factors and the impact of the economic slowdown in the country; and increasing refinancing risks. All of these factors affect, in varying degrees, both the local and foreign currency ratings on Argentine companies. While the foreign currency rating reflects S&P's opinion of an obligor's capacity to meet all financial obligations, the local currency rating is a current opinion of an obligor's overall capacity to generate sufficient local-currency resources to meet all its financial obligations (both local and foreign currency), absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Consequently, both the local and foreign currency ratings are affected by S&P's view of country risk, but the foreign currency rating is further affected by S&P's assessment of transfer and convertibility risk. The T&C assessment for Argentina is currently 'B-'. The downgrades on the local currency ratings reflect S&P's perception of the weaker economic environment for corporations operating in Argentina that has led to a deterioration of their overall credit quality and now challenges their prospects. Among the dominant negative factors S&P include higher political and regulatory risks, the impact of the global economic slowdown on domestic activity, and contracted credit markets that significantly narrow the ability of companies to refinance their obligations. S&P believes that companies with local currency ratings above the global scale sovereign rating on the Republic of Argentina (B-/Stable/C) would be able to generate sufficient local-currency resources to meet all their financial obligations, both local- and foreign-currency, under a severe sovereign default scenario, absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Such a scenario would include a significant contraction of the GDP, a strong devaluation of the peso, rising inflation, an inability to fully pass through increases in costs to prices, and a lack of new financing. The downgrades on the foreign currency ratings also incorporate S&P's perception of a higher probability that the Argentine government restricts access to the foreign exchange needed to pay debt service in foreign obligations (T&C risk). In S&P's opinion, companies with foreign-currency ratings remaining above S&P's T&C risk assessment for the country are partially insulated from T&C risk, given certain mitigating factors. Those factors are mainly some or most of these: substantial foreign currency generation (generated by exports with proceeds that can be kept abroad); substantial foreign currency generation (due to foreign operations); the preferred export repatriation regime requirement granted to Argentine oil and gas companies, which allowed them to access offshore cash during the 2001-2002 crisis in Argentina; substantial offshore liquidity, which S&P believes will be maintained as such; moderate leverage; and the existence of implicit parent support or formal parent guarantees. Ratings List Ratings Lowered Or Affirmed; Some Removed From Watch Alto Palermo S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Alto Parana S.A. To From -- ---- Corporate Credit Rating BB-/Stable/-- BB/Watch Neg/-- Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Electricidad Argentina S.A. (EASA) To From -- ---- Corporate Credit Rating CCC/Stable/-- B-/Watch Neg/-- Empresa Distribuidora Y Comercializadora Norte S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Hidroelectrica Piedra del Aguila S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- IRSA Inversiones y Representaciones S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Loma Negra C.I.A.S.A. Corporate Credit Rating To From -- ---- Foreign Currency B/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Pan American Energy LLC To From -- ---- Corporate Credit Rating B+/Stable/-- BB-/Watch Neg/-- Petrobras Energia S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Telecom Argentina S.A. Telecom Personal S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Telefonica de Argentina S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Transportadora de Gas del Sur S.A. (TGS) Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B+/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- YPF S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Local Currency B+/Stable/-- BB/Watch Neg/-- LOMA NEGRA: S&P Cuts Local Currency Corporate Credit Rating to 'B' ------------------------------------------------------------------ Standard & Poor's Ratings Services said that it lowered or affirmed the global scale ratings on 15 Argentine entities. Some of these ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 5, 2008. The outlooks on all ratings are stable. "The actions followed a comprehensive review of the domestic operating environment for corporate entities," said Standard & Poor's credit analyst Pablo Lutereau. "We also considered the impact of the global economic slowdown on domestic economic activity, the availability of refinancing sources, and the outlook for the relevant industries. And S&P assessed these entities' ability and willingness to timely honor their foreign exchange obligations, particularly those contracted abroad in case of a potential government intervention in the foreign-exchange market." In S&P's opinion, the elimination of the private pension system at the end of 2008, the amendment to export repatriation requirements, and the regulators' assumption of broad discretion in allowing tariff increases have harmed the economic and business environment, which S&P refer to broadly as "country risk" and now see at levels similar to the sovereign's credit quality, now rated at 'B-'. As a consequence, S&P believes that the corporate sector in Argentina now faces tougher challenges than it did before and that overall credit quality has weakened due to higher government intervention; lower financial flexibility (and more dependence on discretionary government agencies after the renationalization of the private pension system; reduced incentives for parent support as the rules of the game in the country become more uncertain; cash flow volatility due to industry-specific factors; countrywide factors and the impact of the economic slowdown in the country; and increasing refinancing risks. All of these factors affect, in varying degrees, both the local and foreign currency ratings on Argentine companies. While the foreign currency rating reflects S&P's opinion of an obligor's capacity to meet all financial obligations, the local currency rating is a current opinion of an obligor's overall capacity to generate sufficient local-currency resources to meet all its financial obligations (both local and foreign currency), absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Consequently, both the local and foreign currency ratings are affected by S&P's view of country risk, but the foreign currency rating is further affected by S&P's assessment of transfer and convertibility risk. The T&C assessment for Argentina is currently 'B-'. The downgrades on the local currency ratings reflect S&P's perception of the weaker economic environment for corporations operating in Argentina that has led to a deterioration of their overall credit quality and now challenges their prospects. Among the dominant negative factors S&P include higher political and regulatory risks, the impact of the global economic slowdown on domestic activity, and contracted credit markets that significantly narrow the ability of companies to refinance their obligations. S&P believes that companies with local currency ratings above the global scale sovereign rating on the Republic of Argentina (B-/Stable/C) would be able to generate sufficient local-currency resources to meet all their financial obligations, both local- and foreign-currency, under a severe sovereign default scenario, absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Such a scenario would include a significant contraction of the GDP, a strong devaluation of the peso, rising inflation, an inability to fully pass through increases in costs to prices, and a lack of new financing. The downgrades on the foreign currency ratings also incorporate S&P's perception of a higher probability that the Argentine government restricts access to the foreign exchange needed to pay debt service in foreign obligations (T&C risk). In S&P's opinion, companies with foreign-currency ratings remaining above S&P's T&C risk assessment for the country are partially insulated from T&C risk, given certain mitigating factors. Those factors are mainly some or most of these: substantial foreign currency generation (generated by exports with proceeds that can be kept abroad); substantial foreign currency generation (due to foreign operations); the preferred export repatriation regime requirement granted to Argentine oil and gas companies, which allowed them to access offshore cash during the 2001-2002 crisis in Argentina; substantial offshore liquidity, which S&P believes will be maintained as such; moderate leverage; and the existence of implicit parent support or formal parent guarantees. Ratings List Ratings Lowered Or Affirmed; Some Removed From Watch Alto Palermo S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Alto Parana S.A. To From -- ---- Corporate Credit Rating BB-/Stable/-- BB/Watch Neg/-- Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Electricidad Argentina S.A. (EASA) To From -- ---- Corporate Credit Rating CCC/Stable/-- B-/Watch Neg/-- Empresa Distribuidora Y Comercializadora Norte S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Hidroelectrica Piedra del Aguila S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- IRSA Inversiones y Representaciones S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Loma Negra C.I.A.S.A. Corporate Credit Rating To From -- ---- Foreign Currency B/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Pan American Energy LLC To From -- ---- Corporate Credit Rating B+/Stable/-- BB-/Watch Neg/-- Petrobras Energia S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Telecom Argentina S.A. Telecom Personal S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Telefonica de Argentina S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Transportadora de Gas del Sur S.A. (TGS) Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B+/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- YPF S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Local Currency B+/Stable/-- BB/Watch Neg/-- PAN AMERICAN: S&P Cuts Corporate Credit Rating to 'B+' ------------------------------------------------------ Standard & Poor's Ratings Services said that it lowered or affirmed the global scale ratings on 15 Argentine entities. Some of these ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 5, 2008. The outlooks on all ratings are stable. "The actions followed a comprehensive review of the domestic operating environment for corporate entities," said Standard & Poor's credit analyst Pablo Lutereau. "We also considered the impact of the global economic slowdown on domestic economic activity, the availability of refinancing sources, and the outlook for the relevant industries. And S&P assessed these entities' ability and willingness to timely honor their foreign exchange obligations, particularly those contracted abroad in case of a potential government intervention in the foreign-exchange market." In S&P's opinion, the elimination of the private pension system at the end of 2008, the amendment to export repatriation requirements, and the regulators' assumption of broad discretion in allowing tariff increases have harmed the economic and business environment, which S&P refer to broadly as "country risk" and now see at levels similar to the sovereign's credit quality, now rated at 'B-'. As a consequence, S&P believes that the corporate sector in Argentina now faces tougher challenges than it did before and that overall credit quality has weakened due to higher government intervention; lower financial flexibility (and more dependence on discretionary government agencies after the renationalization of the private pension system; reduced incentives for parent support as the rules of the game in the country become more uncertain; cash flow volatility due to industry-specific factors; countrywide factors and the impact of the economic slowdown in the country; and increasing refinancing risks. All of these factors affect, in varying degrees, both the local and foreign currency ratings on Argentine companies. While the foreign currency rating reflects S&P's opinion of an obligor's capacity to meet all financial obligations, the local currency rating is a current opinion of an obligor's overall capacity to generate sufficient local-currency resources to meet all its financial obligations (both local and foreign currency), absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Consequently, both the local and foreign currency ratings are affected by S&P's view of country risk, but the foreign currency rating is further affected by S&P's assessment of transfer and convertibility risk. The T&C assessment for Argentina is currently 'B-'. The downgrades on the local currency ratings reflect S&P's perception of the weaker economic environment for corporations operating in Argentina that has led to a deterioration of their overall credit quality and now challenges their prospects. Among the dominant negative factors S&P include higher political and regulatory risks, the impact of the global economic slowdown on domestic activity, and contracted credit markets that significantly narrow the ability of companies to refinance their obligations. S&P believes that companies with local currency ratings above the global scale sovereign rating on the Republic of Argentina (B-/Stable/C) would be able to generate sufficient local-currency resources to meet all their financial obligations, both local- and foreign-currency, under a severe sovereign default scenario, absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Such a scenario would include a significant contraction of the GDP, a strong devaluation of the peso, rising inflation, an inability to fully pass through increases in costs to prices, and a lack of new financing. The downgrades on the foreign currency ratings also incorporate S&P's perception of a higher probability that the Argentine government restricts access to the foreign exchange needed to pay debt service in foreign obligations (T&C risk). In S&P's opinion, companies with foreign-currency ratings remaining above S&P's T&C risk assessment for the country are partially insulated from T&C risk, given certain mitigating factors. Those factors are mainly some or most of these: substantial foreign currency generation (generated by exports with proceeds that can be kept abroad); substantial foreign currency generation (due to foreign operations); the preferred export repatriation regime requirement granted to Argentine oil and gas companies, which allowed them to access offshore cash during the 2001-2002 crisis in Argentina; substantial offshore liquidity, which S&P believes will be maintained as such; moderate leverage; and the existence of implicit parent support or formal parent guarantees. Ratings List Ratings Lowered Or Affirmed; Some Removed From Watch Alto Palermo S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Alto Parana S.A. To From -- ---- Corporate Credit Rating BB-/Stable/-- BB/Watch Neg/-- Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Electricidad Argentina S.A. (EASA) To From -- ---- Corporate Credit Rating CCC/Stable/-- B-/Watch Neg/-- Empresa Distribuidora Y Comercializadora Norte S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Hidroelectrica Piedra del Aguila S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- IRSA Inversiones y Representaciones S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Loma Negra C.I.A.S.A. Corporate Credit Rating To From -- ---- Foreign Currency B/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Pan American Energy LLC To From -- ---- Corporate Credit Rating B+/Stable/-- BB-/Watch Neg/-- Petrobras Energia S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Telecom Argentina S.A. Telecom Personal S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Telefonica de Argentina S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Transportadora de Gas del Sur S.A. (TGS) Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B+/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- YPF S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Local Currency B+/Stable/-- BB/Watch Neg/-- PETROBRAS ENERGIA: S&P Cuts Corporate Credit Rating to B+ From BB ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered or affirmed the global scale ratings on 15 Argentine entities. Some of these ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 5, 2008. The outlooks on all ratings are stable. "The actions followed a comprehensive review of the domestic operating environment for corporate entities," said Standard & Poor's credit analyst Pablo Lutereau. "We also considered the impact of the global economic slowdown on domestic economic activity, the availability of refinancing sources, and the outlook for the relevant industries. And S&P assessed these entities' ability and willingness to timely honor their foreign exchange obligations, particularly those contracted abroad in case of a potential government intervention in the foreign-exchange market." In S&P's opinion, the elimination of the private pension system at the end of 2008, the amendment to export repatriation requirements, and the regulators' assumption of broad discretion in allowing tariff increases have harmed the economic and business environment, which S&P refer to broadly as "country risk" and now see at levels similar to the sovereign's credit quality, now rated at 'B-'. As a consequence, S&P believes that the corporate sector in Argentina now faces tougher challenges than it did before and that overall credit quality has weakened due to higher government intervention; lower financial flexibility (and more dependence on discretionary government agencies after the renationalization of the private pension system; reduced incentives for parent support as the rules of the game in the country become more uncertain; cash flow volatility due to industry-specific factors; countrywide factors and the impact of the economic slowdown in the country; and increasing refinancing risks. All of these factors affect, in varying degrees, both the local and foreign currency ratings on Argentine companies. While the foreign currency rating reflects S&P's opinion of an obligor's capacity to meet all financial obligations, the local currency rating is a current opinion of an obligor's overall capacity to generate sufficient local-currency resources to meet all its financial obligations (both local and foreign currency), absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Consequently, both the local and foreign currency ratings are affected by S&P's view of country risk, but the foreign currency rating is further affected by S&P's assessment of transfer and convertibility risk. The T&C assessment for Argentina is currently 'B-'. The downgrades on the local currency ratings reflect S&P's perception of the weaker economic environment for corporations operating in Argentina that has led to a deterioration of their overall credit quality and now challenges their prospects. Among the dominant negative factors S&P include higher political and regulatory risks, the impact of the global economic slowdown on domestic activity, and contracted credit markets that significantly narrow the ability of companies to refinance their obligations. S&P believes that companies with local currency ratings above the global scale sovereign rating on the Republic of Argentina (B-/Stable/C) would be able to generate sufficient local-currency resources to meet all their financial obligations, both local- and foreign-currency, under a severe sovereign default scenario, absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Such a scenario would include a significant contraction of the GDP, a strong devaluation of the peso, rising inflation, an inability to fully pass through increases in costs to prices, and a lack of new financing. The downgrades on the foreign currency ratings also incorporate S&P's perception of a higher probability that the Argentine government restricts access to the foreign exchange needed to pay debt service in foreign obligations (T&C risk). In S&P's opinion, companies with foreign-currency ratings remaining above S&P's T&C risk assessment for the country are partially insulated from T&C risk, given certain mitigating factors. Those factors are mainly some or most of these: substantial foreign currency generation (generated by exports with proceeds that can be kept abroad); substantial foreign currency generation (due to foreign operations); the preferred export repatriation regime requirement granted to Argentine oil and gas companies, which allowed them to access offshore cash during the 2001-2002 crisis in Argentina; substantial offshore liquidity, which S&P believes will be maintained as such; moderate leverage; and the existence of implicit parent support or formal parent guarantees. Ratings List Ratings Lowered Or Affirmed; Some Removed From Watch Alto Palermo S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Alto Parana S.A. To From -- ---- Corporate Credit Rating BB-/Stable/-- BB/Watch Neg/-- Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Electricidad Argentina S.A. (EASA) To From -- ---- Corporate Credit Rating CCC/Stable/-- B-/Watch Neg/-- Empresa Distribuidora Y Comercializadora Norte S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Hidroelectrica Piedra del Aguila S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- IRSA Inversiones y Representaciones S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Loma Negra C.I.A.S.A. Corporate Credit Rating To From -- ---- Foreign Currency B/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Pan American Energy LLC To From -- ---- Corporate Credit Rating B+/Stable/-- BB-/Watch Neg/-- Petrobras Energia S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Telecom Argentina S.A. Telecom Personal S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Telefonica de Argentina S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Transportadora de Gas del Sur S.A. (TGS) Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B+/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- YPF S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Local Currency B+/Stable/-- BB/Watch Neg/-- SISTEMAS INTEGRALES: Proofs of Claim Verification Due on May 11 --------------------------------------------------------------- The court-appointed trustee for Sistemas Integrales de Salud S.A.'s bankruptcy proceedings, will be verifying creditors' proofs of claim until May 11, 2009. The trustee will present the validated claims in court as individual reports on June 23, 2009. 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 the company and its creditors. A general report that contains an audit of the company's accounting and banking records will be submitted in court on August 5, 2009. TELECOM ARGENTINA: S&P Cuts For. Curr. Corp. Credit Rating to B- ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered or affirmed the global scale ratings on 15 Argentine entities. Some of these ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 5, 2008. The outlooks on all ratings are stable. "The actions followed a comprehensive review of the domestic operating environment for corporate entities," said Standard & Poor's credit analyst Pablo Lutereau. "We also considered the impact of the global economic slowdown on domestic economic activity, the availability of refinancing sources, and the outlook for the relevant industries. And S&P assessed these entities' ability and willingness to timely honor their foreign exchange obligations, particularly those contracted abroad in case of a potential government intervention in the foreign-exchange market." In S&P's opinion, the elimination of the private pension system at the end of 2008, the amendment to export repatriation requirements, and the regulators' assumption of broad discretion in allowing tariff increases have harmed the economic and business environment, which S&P refer to broadly as "country risk" and now see at levels similar to the sovereign's credit quality, now rated at 'B-'. As a consequence, S&P believes that the corporate sector in Argentina now faces tougher challenges than it did before and that overall credit quality has weakened due to higher government intervention; lower financial flexibility (and more dependence on discretionary government agencies after the renationalization of the private pension system; reduced incentives for parent support as the rules of the game in the country become more uncertain; cash flow volatility due to industry-specific factors; countrywide factors and the impact of the economic slowdown in the country; and increasing refinancing risks. All of these factors affect, in varying degrees, both the local and foreign currency ratings on Argentine companies. While the foreign currency rating reflects S&P's opinion of an obligor's capacity to meet all financial obligations, the local currency rating is a current opinion of an obligor's overall capacity to generate sufficient local-currency resources to meet all its financial obligations (both local and foreign currency), absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Consequently, both the local and foreign currency ratings are affected by S&P's view of country risk, but the foreign currency rating is further affected by S&P's assessment of transfer and convertibility risk. The T&C assessment for Argentina is currently 'B-'. The downgrades on the local currency ratings reflect S&P's perception of the weaker economic environment for corporations operating in Argentina that has led to a deterioration of their overall credit quality and now challenges their prospects. Among the dominant negative factors S&P include higher political and regulatory risks, the impact of the global economic slowdown on domestic activity, and contracted credit markets that significantly narrow the ability of companies to refinance their obligations. S&P believes that companies with local currency ratings above the global scale sovereign rating on the Republic of Argentina (B-/Stable/C) would be able to generate sufficient local-currency resources to meet all their financial obligations, both local- and foreign-currency, under a severe sovereign default scenario, absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Such a scenario would include a significant contraction of the GDP, a strong devaluation of the peso, rising inflation, an inability to fully pass through increases in costs to prices, and a lack of new financing. The downgrades on the foreign currency ratings also incorporate S&P's perception of a higher probability that the Argentine government restricts access to the foreign exchange needed to pay debt service in foreign obligations (T&C risk). In S&P's opinion, companies with foreign-currency ratings remaining above S&P's T&C risk assessment for the country are partially insulated from T&C risk, given certain mitigating factors. Those factors are mainly some or most of these: substantial foreign currency generation (generated by exports with proceeds that can be kept abroad); substantial foreign currency generation (due to foreign operations); the preferred export repatriation regime requirement granted to Argentine oil and gas companies, which allowed them to access offshore cash during the 2001-2002 crisis in Argentina; substantial offshore liquidity, which S&P believes will be maintained as such; moderate leverage; and the existence of implicit parent support or formal parent guarantees. Ratings List Ratings Lowered Or Affirmed; Some Removed From Watch Alto Palermo S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Alto Parana S.A. To From -- ---- Corporate Credit Rating BB-/Stable/-- BB/Watch Neg/-- Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Electricidad Argentina S.A. (EASA) To From -- ---- Corporate Credit Rating CCC/Stable/-- B-/Watch Neg/-- Empresa Distribuidora Y Comercializadora Norte S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Hidroelectrica Piedra del Aguila S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- IRSA Inversiones y Representaciones S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Loma Negra C.I.A.S.A. Corporate Credit Rating To From -- ---- Foreign Currency B/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Pan American Energy LLC To From -- ---- Corporate Credit Rating B+/Stable/-- BB-/Watch Neg/-- Petrobras Energia S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Telecom Argentina S.A. Telecom Personal S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Telefonica de Argentina S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Transportadora de Gas del Sur S.A. (TGS) Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B+/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- YPF S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Local Currency B+/Stable/-- BB/Watch Neg/-- TELECOM PERSONAL: S&P Cuts Local Curr. Corp. Credit Rating to 'B' ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered or affirmed the global scale ratings on 15 Argentine entities. Some of these ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 5, 2008. The outlooks on all ratings are stable. "The actions followed a comprehensive review of the domestic operating environment for corporate entities," said Standard & Poor's credit analyst Pablo Lutereau. "We also considered the impact of the global economic slowdown on domestic economic activity, the availability of refinancing sources, and the outlook for the relevant industries. And S&P assessed these entities' ability and willingness to timely honor their foreign exchange obligations, particularly those contracted abroad in case of a potential government intervention in the foreign-exchange market." In S&P's opinion, the elimination of the private pension system at the end of 2008, the amendment to export repatriation requirements, and the regulators' assumption of broad discretion in allowing tariff increases have harmed the economic and business environment, which S&P refer to broadly as "country risk" and now see at levels similar to the sovereign's credit quality, now rated at 'B-'. As a consequence, S&P believes that the corporate sector in Argentina now faces tougher challenges than it did before and that overall credit quality has weakened due to higher government intervention; lower financial flexibility (and more dependence on discretionary government agencies after the renationalization of the private pension system; reduced incentives for parent support as the rules of the game in the country become more uncertain; cash flow volatility due to industry-specific factors; countrywide factors and the impact of the economic slowdown in the country; and increasing refinancing risks. All of these factors affect, in varying degrees, both the local and foreign currency ratings on Argentine companies. While the foreign currency rating reflects S&P's opinion of an obligor's capacity to meet all financial obligations, the local currency rating is a current opinion of an obligor's overall capacity to generate sufficient local-currency resources to meet all its financial obligations (both local and foreign currency), absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Consequently, both the local and foreign currency ratings are affected by S&P's view of country risk, but the foreign currency rating is further affected by S&P's assessment of transfer and convertibility risk. The T&C assessment for Argentina is currently 'B-'. The downgrades on the local currency ratings reflect S&P's perception of the weaker economic environment for corporations operating in Argentina that has led to a deterioration of their overall credit quality and now challenges their prospects. Among the dominant negative factors S&P include higher political and regulatory risks, the impact of the global economic slowdown on domestic activity, and contracted credit markets that significantly narrow the ability of companies to refinance their obligations. S&P believes that companies with local currency ratings above the global scale sovereign rating on the Republic of Argentina (B-/Stable/C) would be able to generate sufficient local-currency resources to meet all their financial obligations, both local- and foreign-currency, under a severe sovereign default scenario, absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Such a scenario would include a significant contraction of the GDP, a strong devaluation of the peso, rising inflation, an inability to fully pass through increases in costs to prices, and a lack of new financing. The downgrades on the foreign currency ratings also incorporate S&P's perception of a higher probability that the Argentine government restricts access to the foreign exchange needed to pay debt service in foreign obligations (T&C risk). In S&P's opinion, companies with foreign-currency ratings remaining above S&P's T&C risk assessment for the country are partially insulated from T&C risk, given certain mitigating factors. Those factors are mainly some or most of these: substantial foreign currency generation (generated by exports with proceeds that can be kept abroad); substantial foreign currency generation (due to foreign operations); the preferred export repatriation regime requirement granted to Argentine oil and gas companies, which allowed them to access offshore cash during the 2001-2002 crisis in Argentina; substantial offshore liquidity, which S&P believes will be maintained as such; moderate leverage; and the existence of implicit parent support or formal parent guarantees. Ratings List Ratings Lowered Or Affirmed; Some Removed From Watch Alto Palermo S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Alto Parana S.A. To From -- ---- Corporate Credit Rating BB-/Stable/-- BB/Watch Neg/-- Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Electricidad Argentina S.A. (EASA) To From -- ---- Corporate Credit Rating CCC/Stable/-- B-/Watch Neg/-- Empresa Distribuidora Y Comercializadora Norte S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Hidroelectrica Piedra del Aguila S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- IRSA Inversiones y Representaciones S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Loma Negra C.I.A.S.A. Corporate Credit Rating To From -- ---- Foreign Currency B/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Pan American Energy LLC To From -- ---- Corporate Credit Rating B+/Stable/-- BB-/Watch Neg/-- Petrobras Energia S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Telecom Argentina S.A. Telecom Personal S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Telefonica de Argentina S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Transportadora de Gas del Sur S.A. (TGS) Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B+/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- YPF S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Local Currency B+/Stable/-- BB/Watch Neg/-- TELEFONICA DE ARGENTINA: S&P Cuts Corporate Credit Rating to 'B-' ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered or affirmed the global scale ratings on 15 Argentine entities. Some of these ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 5, 2008. The outlooks on all ratings are stable. "The actions followed a comprehensive review of the domestic operating environment for corporate entities," said Standard & Poor's credit analyst Pablo Lutereau. "We also considered the impact of the global economic slowdown on domestic economic activity, the availability of refinancing sources, and the outlook for the relevant industries. And S&P assessed these entities' ability and willingness to timely honor their foreign exchange obligations, particularly those contracted abroad in case of a potential government intervention in the foreign-exchange market." In S&P's opinion, the elimination of the private pension system at the end of 2008, the amendment to export repatriation requirements, and the regulators' assumption of broad discretion in allowing tariff increases have harmed the economic and business environment, which S&P refer to broadly as "country risk" and now see at levels similar to the sovereign's credit quality, now rated at 'B-'. As a consequence, S&P believes that the corporate sector in Argentina now faces tougher challenges than it did before and that overall credit quality has weakened due to higher government intervention; lower financial flexibility (and more dependence on discretionary government agencies after the renationalization of the private pension system; reduced incentives for parent support as the rules of the game in the country become more uncertain; cash flow volatility due to industry-specific factors; countrywide factors and the impact of the economic slowdown in the country; and increasing refinancing risks. All of these factors affect, in varying degrees, both the local and foreign currency ratings on Argentine companies. While the foreign currency rating reflects S&P's opinion of an obligor's capacity to meet all financial obligations, the local currency rating is a current opinion of an obligor's overall capacity to generate sufficient local-currency resources to meet all its financial obligations (both local and foreign currency), absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Consequently, both the local and foreign currency ratings are affected by S&P's view of country risk, but the foreign currency rating is further affected by S&P's assessment of transfer and convertibility risk. The T&C assessment for Argentina is currently 'B-'. The downgrades on the local currency ratings reflect S&P's perception of the weaker economic environment for corporations operating in Argentina that has led to a deterioration of their overall credit quality and now challenges their prospects. Among the dominant negative factors S&P include higher political and regulatory risks, the impact of the global economic slowdown on domestic activity, and contracted credit markets that significantly narrow the ability of companies to refinance their obligations. S&P believes that companies with local currency ratings above the global scale sovereign rating on the Republic of Argentina (B-/Stable/C) would be able to generate sufficient local-currency resources to meet all their financial obligations, both local- and foreign-currency, under a severe sovereign default scenario, absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Such a scenario would include a significant contraction of the GDP, a strong devaluation of the peso, rising inflation, an inability to fully pass through increases in costs to prices, and a lack of new financing. The downgrades on the foreign currency ratings also incorporate S&P's perception of a higher probability that the Argentine government restricts access to the foreign exchange needed to pay debt service in foreign obligations (T&C risk). In S&P's opinion, companies with foreign-currency ratings remaining above S&P's T&C risk assessment for the country are partially insulated from T&C risk, given certain mitigating factors. Those factors are mainly some or most of these: substantial foreign currency generation (generated by exports with proceeds that can be kept abroad); substantial foreign currency generation (due to foreign operations); the preferred export repatriation regime requirement granted to Argentine oil and gas companies, which allowed them to access offshore cash during the 2001-2002 crisis in Argentina; substantial offshore liquidity, which S&P believes will be maintained as such; moderate leverage; and the existence of implicit parent support or formal parent guarantees. Ratings List Ratings Lowered Or Affirmed; Some Removed From Watch Alto Palermo S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Alto Parana S.A. To From -- ---- Corporate Credit Rating BB-/Stable/-- BB/Watch Neg/-- Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Electricidad Argentina S.A. (EASA) To From -- ---- Corporate Credit Rating CCC/Stable/-- B-/Watch Neg/-- Empresa Distribuidora Y Comercializadora Norte S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Hidroelectrica Piedra del Aguila S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- IRSA Inversiones y Representaciones S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Loma Negra C.I.A.S.A. Corporate Credit Rating To From -- ---- Foreign Currency B/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Pan American Energy LLC To From -- ---- Corporate Credit Rating B+/Stable/-- BB-/Watch Neg/-- Petrobras Energia S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Telecom Argentina S.A. Telecom Personal S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Telefonica de Argentina S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Transportadora de Gas del Sur S.A. (TGS) Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B+/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- YPF S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Local Currency B+/Stable/-- BB/Watch Neg/-- TRANSENER SA: S&P Cuts Local Currency Corp. Credit Rating to 'B-' ----------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered or affirmed the global scale ratings on 15 Argentine entities. Some of these ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 5, 2008. The outlooks on all ratings are stable. "The actions followed a comprehensive review of the domestic operating environment for corporate entities," said Standard & Poor's credit analyst Pablo Lutereau. "We also considered the impact of the global economic slowdown on domestic economic activity, the availability of refinancing sources, and the outlook for the relevant industries. And S&P assessed these entities' ability and willingness to timely honor their foreign exchange obligations, particularly those contracted abroad in case of a potential government intervention in the foreign-exchange market." In S&P's opinion, the elimination of the private pension system at the end of 2008, the amendment to export repatriation requirements, and the regulators' assumption of broad discretion in allowing tariff increases have harmed the economic and business environment, which S&P refer to broadly as "country risk" and now see at levels similar to the sovereign's credit quality, now rated at 'B-'. As a consequence, S&P believes that the corporate sector in Argentina now faces tougher challenges than it did before and that overall credit quality has weakened due to higher government intervention; lower financial flexibility (and more dependence on discretionary government agencies after the renationalization of the private pension system; reduced incentives for parent support as the rules of the game in the country become more uncertain; cash flow volatility due to industry-specific factors; countrywide factors and the impact of the economic slowdown in the country; and increasing refinancing risks. All of these factors affect, in varying degrees, both the local and foreign currency ratings on Argentine companies. While the foreign currency rating reflects S&P's opinion of an obligor's capacity to meet all financial obligations, the local currency rating is a current opinion of an obligor's overall capacity to generate sufficient local-currency resources to meet all its financial obligations (both local and foreign currency), absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Consequently, both the local and foreign currency ratings are affected by S&P's view of country risk, but the foreign currency rating is further affected by S&P's assessment of transfer and convertibility risk. The T&C assessment for Argentina is currently 'B-'. The downgrades on the local currency ratings reflect S&P's perception of the weaker economic environment for corporations operating in Argentina that has led to a deterioration of their overall credit quality and now challenges their prospects. Among the dominant negative factors S&P include higher political and regulatory risks, the impact of the global economic slowdown on domestic activity, and contracted credit markets that significantly narrow the ability of companies to refinance their obligations. S&P believes that companies with local currency ratings above the global scale sovereign rating on the Republic of Argentina (B-/Stable/C) would be able to generate sufficient local-currency resources to meet all their financial obligations, both local- and foreign-currency, under a severe sovereign default scenario, absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Such a scenario would include a significant contraction of the GDP, a strong devaluation of the peso, rising inflation, an inability to fully pass through increases in costs to prices, and a lack of new financing. The downgrades on the foreign currency ratings also incorporate S&P's perception of a higher probability that the Argentine government restricts access to the foreign exchange needed to pay debt service in foreign obligations (T&C risk). In S&P's opinion, companies with foreign-currency ratings remaining above S&P's T&C risk assessment for the country are partially insulated from T&C risk, given certain mitigating factors. Those factors are mainly some or most of these: substantial foreign currency generation (generated by exports with proceeds that can be kept abroad); substantial foreign currency generation (due to foreign operations); the preferred export repatriation regime requirement granted to Argentine oil and gas companies, which allowed them to access offshore cash during the 2001-2002 crisis in Argentina; substantial offshore liquidity, which S&P believes will be maintained as such; moderate leverage; and the existence of implicit parent support or formal parent guarantees. Ratings List Ratings Lowered Or Affirmed; Some Removed From Watch Alto Palermo S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Alto Parana S.A. To From -- ---- Corporate Credit Rating BB-/Stable/-- BB/Watch Neg/-- Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Electricidad Argentina S.A. (EASA) To From -- ---- Corporate Credit Rating CCC/Stable/-- B-/Watch Neg/-- Empresa Distribuidora Y Comercializadora Norte S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Hidroelectrica Piedra del Aguila S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- IRSA Inversiones y Representaciones S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Loma Negra C.I.A.S.A. Corporate Credit Rating To From -- ---- Foreign Currency B/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Pan American Energy LLC To From -- ---- Corporate Credit Rating B+/Stable/-- BB-/Watch Neg/-- Petrobras Energia S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Telecom Argentina S.A. Telecom Personal S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Telefonica de Argentina S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Transportadora de Gas del Sur S.A. (TGS) Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B+/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- YPF S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Local Currency B+/Stable/-- BB/Watch Neg/-- TRANSPORTADORA DE GAS: S&P Cuts Corporate Credit Rating to 'B-' --------------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered or affirmed the global scale ratings on 15 Argentine entities. Some of these ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 5, 2008. The outlooks on all ratings are stable. "The actions followed a comprehensive review of the domestic operating environment for corporate entities," said Standard & Poor's credit analyst Pablo Lutereau. "We also considered the impact of the global economic slowdown on domestic economic activity, the availability of refinancing sources, and the outlook for the relevant industries. And S&P assessed these entities' ability and willingness to timely honor their foreign exchange obligations, particularly those contracted abroad in case of a potential government intervention in the foreign-exchange market." In S&P's opinion, the elimination of the private pension system at the end of 2008, the amendment to export repatriation requirements, and the regulators' assumption of broad discretion in allowing tariff increases have harmed the economic and business environment, which S&P refer to broadly as "country risk" and now see at levels similar to the sovereign's credit quality, now rated at 'B-'. As a consequence, S&P believes that the corporate sector in Argentina now faces tougher challenges than it did before and that overall credit quality has weakened due to higher government intervention; lower financial flexibility (and more dependence on discretionary government agencies after the renationalization of the private pension system; reduced incentives for parent support as the rules of the game in the country become more uncertain; cash flow volatility due to industry-specific factors; countrywide factors and the impact of the economic slowdown in the country; and increasing refinancing risks. All of these factors affect, in varying degrees, both the local and foreign currency ratings on Argentine companies. While the foreign currency rating reflects S&P's opinion of an obligor's capacity to meet all financial obligations, the local currency rating is a current opinion of an obligor's overall capacity to generate sufficient local-currency resources to meet all its financial obligations (both local and foreign currency), absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Consequently, both the local and foreign currency ratings are affected by S&P's view of country risk, but the foreign currency rating is further affected by S&P's assessment of transfer and convertibility risk. The T&C assessment for Argentina is currently 'B-'. The downgrades on the local currency ratings reflect S&P's perception of the weaker economic environment for corporations operating in Argentina that has led to a deterioration of their overall credit quality and now challenges their prospects. Among the dominant negative factors S&P include higher political and regulatory risks, the impact of the global economic slowdown on domestic activity, and contracted credit markets that significantly narrow the ability of companies to refinance their obligations. S&P believes that companies with local currency ratings above the global scale sovereign rating on the Republic of Argentina (B-/Stable/C) would be able to generate sufficient local-currency resources to meet all their financial obligations, both local- and foreign-currency, under a severe sovereign default scenario, absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Such a scenario would include a significant contraction of the GDP, a strong devaluation of the peso, rising inflation, an inability to fully pass through increases in costs to prices, and a lack of new financing. The downgrades on the foreign currency ratings also incorporate S&P's perception of a higher probability that the Argentine government restricts access to the foreign exchange needed to pay debt service in foreign obligations (T&C risk). In S&P's opinion, companies with foreign-currency ratings remaining above S&P's T&C risk assessment for the country are partially insulated from T&C risk, given certain mitigating factors. Those factors are mainly some or most of these: substantial foreign currency generation (generated by exports with proceeds that can be kept abroad); substantial foreign currency generation (due to foreign operations); the preferred export repatriation regime requirement granted to Argentine oil and gas companies, which allowed them to access offshore cash during the 2001-2002 crisis in Argentina; substantial offshore liquidity, which S&P believes will be maintained as such; moderate leverage; and the existence of implicit parent support or formal parent guarantees. Ratings List Ratings Lowered Or Affirmed; Some Removed From Watch Alto Palermo S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Alto Parana S.A. To From -- ---- Corporate Credit Rating BB-/Stable/-- BB/Watch Neg/-- Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Electricidad Argentina S.A. (EASA) To From -- ---- Corporate Credit Rating CCC/Stable/-- B-/Watch Neg/-- Empresa Distribuidora Y Comercializadora Norte S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Hidroelectrica Piedra del Aguila S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- IRSA Inversiones y Representaciones S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Loma Negra C.I.A.S.A. Corporate Credit Rating To From -- ---- Foreign Currency B/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Pan American Energy LLC To From -- ---- Corporate Credit Rating B+/Stable/-- BB-/Watch Neg/-- Petrobras Energia S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Telecom Argentina S.A. Telecom Personal S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Telefonica de Argentina S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Transportadora de Gas del Sur S.A. (TGS) Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B+/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- YPF S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Local Currency B+/Stable/-- BB/Watch Neg/-- YPF SA: S&P Cuts Corporate Credit Ratings to 'B+' From 'BB' ----------------------------------------------------------- Standard & Poor's Ratings Services said that it lowered or affirmed the global scale ratings on 15 Argentine entities. Some of these ratings were removed from CreditWatch, where they were placed with negative implications on Nov. 5, 2008. The outlooks on all ratings are stable. "The actions followed a comprehensive review of the domestic operating environment for corporate entities," said Standard & Poor's credit analyst Pablo Lutereau. "We also considered the impact of the global economic slowdown on domestic economic activity, the availability of refinancing sources, and the outlook for the relevant industries. And S&P assessed these entities' ability and willingness to timely honor their foreign exchange obligations, particularly those contracted abroad in case of a potential government intervention in the foreign-exchange market." In S&P's opinion, the elimination of the private pension system at the end of 2008, the amendment to export repatriation requirements, and the regulators' assumption of broad discretion in allowing tariff increases have harmed the economic and business environment, which S&P refer to broadly as "country risk" and now see at levels similar to the sovereign's credit quality, now rated at 'B-'. As a consequence, S&P believes that the corporate sector in Argentina now faces tougher challenges than it did before and that overall credit quality has weakened due to higher government intervention; lower financial flexibility (and more dependence on discretionary government agencies after the renationalization of the private pension system; reduced incentives for parent support as the rules of the game in the country become more uncertain; cash flow volatility due to industry-specific factors; countrywide factors and the impact of the economic slowdown in the country; and increasing refinancing risks. All of these factors affect, in varying degrees, both the local and foreign currency ratings on Argentine companies. While the foreign currency rating reflects S&P's opinion of an obligor's capacity to meet all financial obligations, the local currency rating is a current opinion of an obligor's overall capacity to generate sufficient local-currency resources to meet all its financial obligations (both local and foreign currency), absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Consequently, both the local and foreign currency ratings are affected by S&P's view of country risk, but the foreign currency rating is further affected by S&P's assessment of transfer and convertibility risk. The T&C assessment for Argentina is currently 'B-'. The downgrades on the local currency ratings reflect S&P's perception of the weaker economic environment for corporations operating in Argentina that has led to a deterioration of their overall credit quality and now challenges their prospects. Among the dominant negative factors S&P include higher political and regulatory risks, the impact of the global economic slowdown on domestic activity, and contracted credit markets that significantly narrow the ability of companies to refinance their obligations. S&P believes that companies with local currency ratings above the global scale sovereign rating on the Republic of Argentina (B-/Stable/C) would be able to generate sufficient local-currency resources to meet all their financial obligations, both local- and foreign-currency, under a severe sovereign default scenario, absent the risk of direct sovereign intervention that may constrain payment of foreign-currency debt. Such a scenario would include a significant contraction of the GDP, a strong devaluation of the peso, rising inflation, an inability to fully pass through increases in costs to prices, and a lack of new financing. The downgrades on the foreign currency ratings also incorporate S&P's perception of a higher probability that the Argentine government restricts access to the foreign exchange needed to pay debt service in foreign obligations (T&C risk). In S&P's opinion, companies with foreign-currency ratings remaining above S&P's T&C risk assessment for the country are partially insulated from T&C risk, given certain mitigating factors. Those factors are mainly some or most of these: substantial foreign currency generation (generated by exports with proceeds that can be kept abroad); substantial foreign currency generation (due to foreign operations); the preferred export repatriation regime requirement granted to Argentine oil and gas companies, which allowed them to access offshore cash during the 2001-2002 crisis in Argentina; substantial offshore liquidity, which S&P believes will be maintained as such; moderate leverage; and the existence of implicit parent support or formal parent guarantees. Ratings List Ratings Lowered Or Affirmed; Some Removed From Watch Alto Palermo S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Alto Parana S.A. To From -- ---- Corporate Credit Rating BB-/Stable/-- BB/Watch Neg/-- Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Electricidad Argentina S.A. (EASA) To From -- ---- Corporate Credit Rating CCC/Stable/-- B-/Watch Neg/-- Empresa Distribuidora Y Comercializadora Norte S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- Hidroelectrica Piedra del Aguila S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B/Watch Neg/-- IRSA Inversiones y Representaciones S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- Local Currency B-/Stable/-- B+/Watch Neg/-- Loma Negra C.I.A.S.A. Corporate Credit Rating To From -- ---- Foreign Currency B/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Pan American Energy LLC To From -- ---- Corporate Credit Rating B+/Stable/-- BB-/Watch Neg/-- Petrobras Energia S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Telecom Argentina S.A. Telecom Personal S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- Telefonica de Argentina S.A. Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B/Watch Neg/-- Transportadora de Gas del Sur S.A. (TGS) Corporate Credit Rating To From -- ---- Foreign Currency B-/Stable/-- B+/Watch Neg/-- Local Currency B/Stable/-- B+/Watch Neg/-- YPF S.A. Corporate Credit Rating To From -- ---- Foreign Currency B+/Stable/-- BB/Watch Neg/-- Local Currency B+/Stable/-- BB/Watch Neg/-- ============= B E R M U D A ============= XL CAPITAL: To Slash 15% Workforce This Year to Cut Costs --------------------------------------------------------- XL Capital Limited will slash 15%, around 40 of its 260 emplyoees at its Bermuda headquarters this year, as the company aims to cut costs after posting losses in the fourth quarter and full year 2008, Jonathan Kent of The Royal Gazette reports, citing XL CEO Michael McGavick. As reported in the Troubled Company Reporter-Latin America on Feb. 12, 2009, XL Capital posted a net loss of US$1.43 billion for the fourth quarter and US$2.6 billion for the year. According to TCRLA, citing a company disclosure, Mr. McGavick said that due to the recent losses the company incurred, it will trim approximately 10% of its current global workforce this year to streamline operations to best position the company to compete effectively. Mr. McGavick said: "The job eliminations will be primarily focused on the corporate and functional areas. But efficiency means more than just job eliminations. We have also revisited other expenses and investments as we emphasize simplicity in our operations and processes. These actions are expected to cost approximately US$60-80 million and will lead to a reduction in the underlying expense base of US$100-US$120 million a year for 2010 onwards." The job cuts, The Gazette says, will amount to around 360 jobs in XL's 77 offices in 27 countries. About XL Capital Headquartered in Bermuda, XL Capital Ltd. -- http://www.xlcapital.com/-- writes liability insurance and reinsurance worldwide, specializing in low-frequency, high- severity risks from riots to natural disasters. The company writes policies through numerous subsidiaries, many of them offshore, and also manages a Lloyd's of London syndicate. XL's coverage includes general and executive liability, property, and political risk insurance. Its reinsurance covers property, aviation, energy, nuclear accident, and professional indemnity. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 8, 2008, A.M. Best Co. assigned a debt rating of "bb+" to XL Capital Ltd's US$500 million series C preference shares issued in connection with the company's exercise of the put option under its Mangrove Bay Pass Through Trust contingent capital facility. The rating is under review with negative implications. Concurrently, A.M. Best withdrew the debt rating of "bb+" on Mangrove Bay's US$500 million 6.102% trust preferred shares. SCOTTISH RE: Chief Financial Officer Steps Down ----------------------------------------------- Terry Eleftheriou has resigned from his position as executive vice president and chief financial officer of Scottish Re Group Limited, effective February 9, 2009, to pursue other interests. Mr. Eleftheriou had served as the company's chief financial officer since September 2007. Scottish Re Group Ltd. -- http://www.scottishre.com/-- is a global life reinsurance specialist. Scottish Re has operating businesses in Bermuda, Grand Cayman, Guernsey, Ireland, the United Kingdom, United States, and Singapore. Its flagship operating subsidiaries include Scottish Annuity & Life Insurance Company (Cayman) Ltd. and Scottish Re (US), Inc. Scottish Re Capital Markets, Inc., a member of Scottish Re Group Ltd., is a registered broker dealer that specializes in securitization of life insurance assets and liabilities. As reported in the Troubled Company Reporter-Latin America on February 13, 2009, A.M. Best Co. downgraded the financial strength rating to D from C- and issuer credit ratings to "c" from "cc" of the primary operating insurance subsidiaries of Scottish Re Group Limited (Scottish Re) (Cayman Islands). Concurrently, A.M. Best downgraded the FSR to E (Under Regulatory Supervision) from C- and ICR to "rs" from "cc" of Scottish Re, Inc. A.M. Best also affirmed the ICR of "c" and all debt ratings of Scottish Re. The outlook for all ratings is negative, with exception of the FSR and ICR of Scottish Re (U.S.), Inc and the US$125 million non-cumulative preferred shares of Scottish Re. According to a TCRLA report on June 17, Moody's Investors Service placed on review with direction uncertain Scottish Re Group Ltd.'s senior unsecured shelf of (P)Caa1, subordinate shelf of (P)Caa2, junior subordinate shelf of (P)Caa2, preferred stock of Caa3, and preferred stock shelf of (P)Caa3. Moody's had previously placed the ratings on review for possible downgrade. =========== B R A Z I L =========== BANCO NOSSA: S&P Assigns 'BB' Global Counterparty Credit Rating --------------------------------------------------------------- Standard & Poor's Ratings Services said that it assigned its 'BB' global scale counterparty credit rating and 'brAA' Brazilian national scale rating to Banco Nossa Caixa S.A. At the same time, S&P placed the ratings on CreditWatch with positive implications. The ratings on Nossa Caixa reflect the intrinsic stand-alone credit quality of the bank because S&P understand that the transfer of ownership to Banco do Brasil S.A. (BdB; BBB-/Stable) is very likely to occur in the coming weeks or few months. Therefore, the ratings do not incorporate any support or constraint deriving from the current ownership by the Brazilian state of Sao Paulo (not rated). "The CreditWatch listing indicates that S&P expects to equalize the ratings of Nossa Caixa to those of its new controlling shareholder, BdB, when the transaction is completed," said Standard & Poor's credit analyst Marcelo Peixoto. "In the unlikely event that the sale to BdB is not approved and the bank continues to be controlled by the government of the state of Sao Paulo, S&P will have to reassess the rating on Nossa Caixa and incorporate in the final rating the relationship with the state government." EMBRATEL: To Expand DTH Offering to 75 Cities --------------------------------------------- Empresa Brasileira de Telecomunicacoes S.A ("Embratel") will expand its Direct-To-Home television ("DTH") offer to over 75 cities of the Sergipe region, as well as 59 municipalities in and around Piaui, North Brazil, Rapid TV News reports, citing the company's biggest Mexican shareholder Carlos Slim. 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 Participacoes continues to carry Moody's "B1" local currency issuer rating and "B2" senior unsecured debt rating. GERDAU SA: Share Price Estimate Cut by 42% at Brascan Corretora --------------------------------------------------------------- Gerdau S.A.'s share price estimate was cut by 42% at Brascan Corretora as steel volumes drop along with prices due to weaker global demand, Paulo Winterstein of Bloomberg News reports. According to the report, Analyst Rodrigo Ferraz wrote in a note that Gerdau will likely trade at BRL24.35 a share in 12 months, from his previous estimate of BRL42.21. Fourth-quarter sales volume, the report notes, likely dropped 37% from the year-earlier period in North America and 32% in Latin America. Prices likely fell 9% from the third quarter, Mr. Ferraz wrote, the report says. Bloomberg News discloses that Gerdau is scheduled to report earnings on Feb. 19. "Numbers to be reported by Gerdau reflect the strong decline in global economic activity during the last few months," Mr. Ferraz was quoted by the report as saying. "Our expectation is that in the first quarter of 2009 the level of sales will continue to be very depressed, principally in North America." About Gerdau S.A. Headquartered in Porto Alegre, Brazil, Gerdau S.A. -- http://www.gerdau.com.br/-- produces and distributes crude steel and related long rolled products, drawn products, and long specialty products. In addition to Brazil, Gerdau operates in Argentina, Canada, Chile, Colombia, Uruguay, India and the United States. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 28, 2008, Moody's Investors Service changed to positive from stable the outlook of all ratings related to Gerdau S.A. (Ba1 Corporate Family Rating and Ba1 US$600 million guaranteed perpetual bonds). ========================== C A Y M A N I S L A N D S ========================== ABZ ASSETX: Sole Shareholder Receives Wind-Up Report ---------------------------------------------------- On January 27, 2008, Ogier presented the companies' wind-up report and property disposal to the shareholders of: -- ABZ Assetx Ltd.; and -- ABZ Assetx World Selection Ltd. The Liquidator can be reached at: Ogier c/o Khatidja McLean Telephone: (345) 949 9876 Facsimile: (345) 949 1986 APOLLO SPIRES: Members Receive Wind-Up Report --------------------------------------------- The members of Apollo Spires Limited met on January 23, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer P.O. Box 1984, Grand Cayman KY1-1104 Telephone: (345)949 8244 Facsimile: (345)949 5223 D.B. ZWIRN: Members Receive Wind-Up Report ------------------------------------------ The members of D.B. Zwirn Special Opportunities Fund II, Ltd. met on January 26, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Allison Nolan c/o Maples and Calder, Attorneys-at-law P.O. Box 309GT, Ugland House South Church Street, George Town Grand Cayman, Cayman Islands DRAKE INVESTMENT: Members Receive Wind-Up Report ------------------------------------------------ The members of Drake Investment Fund Ltd met on January 22, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Glen Trenouth P.O. Box 31118, Grand Cayman, KY1-1205 Cayman Islands Telephone: (345) 943 8800 Facsimile: (345) 943 8801 ENH PARTNERS: Sole Shareholder Receives Wind-Up Report ------------------------------------------------------ On January 29, 2009, the sole shareholder of ENH Partners received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited PO Box 694GT, Grand Cayman Telephone: 949 8666 Facsimile: 949 7904 FIRST COMMERCE: Members Receive Wind-Up Report ---------------------------------------------- The members of First Commerce met on January 23, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer P.O. Box 1984, Grand Cayman KY1-1104 Telephone: (345)949 8244 Facsimile: (345)949 5223 KATONAH II: Members Receive Wind-Up Report ------------------------------------------ The members of Katonah II, Ltd. met on January 23, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer P.O. Box 1984, Grand Cayman KY1-1104 Telephone: (345)949 8244 Facsimile: (345)949 5223 KITTONA HOLDINGS: Shareholders Receive Wind-Up Report ----------------------------------------------------- On January 29, 2009, the shareholders of Kittona Holdings Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Kaliwood Corporation c/o Neil Gray Close Brothers (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034, Grand Cayman KY1-1102 Telephone: (345) 949 8455 Facsimile: (345) 949 8499 LIFE SCIENCE: Sole Shareholder Receives Wind-Up Report ------------------------------------------------------ On January 26, 2009, the sole shareholder of Life Science Capital (GP) Ltd. received the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: Ogier c/o Khatidja McLean Telephone: (345) 949 9876 Facsimile: (345) 949 1986 LIFE SCIENCE ET AL: Shareholder Receives Wind-Up Report ------------------------------------------------------- On January 26, 2008, Ogier presented the companies' wind-up report and property disposal to the shareholders of: -- Life Science Capital Management Limited; and -- Life Science Capital Master Fund. -- Life Science Capital Fund; and The Liquidator can be reached at: Ogier c/o Khatidja McLean Telephone: (345) 949 9876 Facsimile: (345) 949 1986 MURJAN LIMITED: Members Receive Wind-Up Report ---------------------------------------------- The members of Murjan Limited met on January 23, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer P.O. Box 1984, Grand Cayman KY1-1104 Telephone: (345)949 8244 Facsimile: (345)949 5223 MURJAN 2: Members Receive Wind-Up Report ---------------------------------------- The members of Murjan 2 Limited met on January 23, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer P.O. Box 1984, Grand Cayman KY1-1104 Telephone: (345)949 8244 Facsimile: (345)949 5223 MURJAN 3: Members Receive Wind-Up Report ---------------------------------------- The members of Murjan 3 Limited met on January 23, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer P.O. Box 1984, Grand Cayman KY1-1104 Telephone: (345)949 8244 Facsimile: (345)949 5223 OTTIMO FUNDING: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Ottimo Funding Ltd. met on January 23, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stuart Sybersma c/o Jessica Turnbull, Deloitte P.O. Box 1787GT, Grand Cayman Cayman Islands Telephone: (345) 949-7500 Facsimile: (345) 949-8258 PLATINUM CAPITAL: Shareholder Receives Wind-Up Report ----------------------------------------------------- On January 22, 2008, Ogier presented the companies' wind-up report and property disposal to the shareholders of: -- Platinum Capital Protected Income Plus Fund Limited; amd -- Platinum Capital Protected Equity Plus Fund Limited. The Liquidator can be reached at: Ogier c/o Khatidja McLean Telephone: (345) 949 9876 Facsimile: (345) 949 1986 PRINCETOWN PHOTONICS: Shareholder Receives Wind-Up Report --------------------------------------------------------- On January 29, 2009, the shareholder of Princetown Photonics (Cayman) Co., Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eddie Chen c/o Ms. Kay Hsieh 26th Floor, No. 1205, Tun-Hwa S. Road. Sec2, Taipei 106, Taiwan Tel: 345 949 2648 Fax: 345 945 2877 SIGNUM SAPPHIRE: Members Receive Wind-Up Report ----------------------------------------------- The members of Signum Sapphire Limited met on January 23, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer P.O. Box 1984, Grand Cayman KY1-1104 Telephone: (345)949 8244 Facsimile: (345)949 5223 TATRONICS HOLDINGS: Shareholders Receive Wind-Up Report ------------------------------------------------------- On January 29, 2009, the shareholders of Tatronics Holdings Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Kaliwood Corporation c/o Neil Gray Close Brothers (Cayman) Limited Harbour Place, Fourth Floor P.O. Box 1034, Grand Cayman KY1-1102 Telephone: (345) 949 8455 Facsimile: (345) 949 8499 WAKELAND INVESTMENTS: Sole Shareholder Receives Wind-Up Report -------------------------------------------------------------- On January 29, 2009, the sole shareholder of Wakeland Investments Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited PO Box 694GT, Grand Cayman Telephone: 949 8666 Facsimile: 949 7904 ================== C O S T A R I C A ================== * Fitch Affirms Costa Rica's Issuer Default Rating to 'BB+' ----------------------------------------------------------- Fitch Ratings affirms Costa Rica's ratings: -- Long-term foreign currency Issuer Default Rating at 'BB'; -- Long-term local currency IDR at 'BB+'; -- Short-term IDR at 'B'; -- Country ceiling at 'BB+'. The Rating Outlook is Stable. Costa Rica's ratings are supported by its high per capita income, strong governance indicators, modest external debt burden and improved public finances. On the other hand, the monetary and exchange rate policy framework represents a key credit weakness, particularly in light of comparatively high levels of inflation and financial dollarization, a relatively large current account deficit, financial sector weaknesses and fragile albeit improved international liquidity. 'Fitch believes that Costa Rica's improved public finances, net external creditor position and broad-based multilateral support could help to mitigate the impact of the U.S. recession and tighter global liquidity on sovereign creditworthiness,' said Casey Reckman, Associate Director in Fitch's Sovereign Group. Recent fiscal consolidation owing to buoyant economic growth, administrative measures, expenditure discipline and incomplete execution, underpin stronger public finances. Although the fiscal balance will return to negative levels in 2009 as growth slows and authorities try to cushion the blow of external shocks with higher spending, the projected 2.5% of GDP fiscal deficit would not threaten debt dynamics and still compares favorably against the 'BB' median. Costa Rica's general government debt is forecast to weaken slightly to 27% of GDP in 2009, yet should also remain stronger than the peer median. Costa Rica's large current account deficit and fragile liquidity position leave the country vulnerable to shocks, particularly in the absence of a stronger monetary and exchange rate policy framework. The sovereign's liquidity ratio, at 102% in 2009, remains well below the peer median of 166%. Furthermore, if dollar deposits in the financial system are included, the liquidity ratio falls to around 45%, reflecting underlying vulnerabilities in Costa Rica's international reserves position and high level of financial dollarization. Costa Rica's large external financing needs, at 80.6% of international reserves in 2009, have traditionally been covered in part by high levels of FDI. Although Fitch expects FDI inflows to weaken in 2009, Costa Rica's broad multilateral backing through emergency liquidity support, which could amount to US$2 billion, could help bolster liquidity and meet external financing needs in 2009. The credibility of Costa Rica's monetary and exchange rate policy framework continues to constrain the sovereign's ratings. Inflation objectives were introduced in 2007 but the Central Bank of Costa Rica (BCCR) has not met them effectively. In 2008, the BCCR prioritized managing foreign exchange pressures over meeting inflation targets as evidenced by negative real interest rates and the use of international reserves to defend the managed exchange rate band. 'Costa Rica's monetary and exchange rate regime may continue to face challenges from reduced capital inflows, higher risk aversion and declining CXR, but Fitch welcomes the BCCR's recent decision to increase the pace of depreciation allowed within the band,' Reckman added. In spite of improved regulation and reduced offshore activities, Costa Rica's financial system remains comparatively weak due to high and increasing financial dollarization and lower capital adequacy. In this context, economic slowdown and continued currency pressure could weaken the financial system, potentially leading to contingent liabilities for the sovereign in light of considerable state participation in the banking system. Strengthening of the monetary and exchange rate policy framework could benefit Costa Rica's ability to cope with external shocks and in turn, its creditworthiness. Passage of revenue-enhancing legislation along with continued fiscal discipline is also critical to supporting Costa Rica's ratings by sustaining positive debt dynamics as economic growth decelerates. Alternatively, in light of concerns about Costa Rica's relatively weak exchange rate framework, current account deficit and liquidity indicators, significant erosion of international reserves could put downward pressure on ratings. An inappropriate policy response to the ongoing economic slowdown or greater currency pressures could also be negative for creditworthiness, particularly in light of important public participation in a weak financial system. ============================== T R I N I D A D & T O B A G O ============================== CL FINANCIAL: Angostura Unit Won't be Affected by Gov't Bailout --------------------------------------------------------------- CL Financial Group Chief Finance Officer Michael Caballo assured that Angostura Limited's operations will not be affected by the recent government bailout of parent company, CL Financial Limited, Trinidad and Tobago Newsday reports. "The group is independent. Angostura has a viable operation and the company is making a profit. Even if CL Financial is the parent company, Angostura's operations are totally independent from the other subsidiaries," CEO Caballo told Newsday in an interview. According to the report, Corporate Communications Manager for Angostura, Giselle Laronde-West, said the company was stable. As reported in the Troubled Company Reporter-Latin America on February 10, 2009, Trinidad and Tobago Express said Trinidad and Tobago President George Maxwell Richards signed the bailout bills for CL Financial Limited, giving the government the authority to control the company's unit, CLICO, and giving the central bank extensive powers to treat with CL Financial's collapse and the consequent systemic crisis. As reported by Reuters on January 30, 2009, the central bank said all third party assets and liabilities on the books of Clico and its Caribbean Money Market Brokers unit would be transferred to state-owned First Citizens Bank. Mr. Williams, the same report related, said the move is aimed to ensuring resources are available to meet withdrawals by bank depositors and by policyholders of the Clico Insurance company. About CL Financial According to Wikipedia, CL Financial is the largest privately held conglomerate in Trinidad and Tobago and one of the largest privately held corporations in the entire Caribbean. Founded as an insurance company, Colonial Life Insurance Company (CLICO) by Cyril Duprey, it was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. CL FINANCIAL: CIBC Eyes Company's 55% Stake in Republic Bank ------------------------------------------------------------ Canadian Imperial Bank of Commerce ("CIBC") is interested to renew its offer to acquire CL Financial's 55% Stake in Republic bank amid the recent government bailout, Trinidad and Tobago Express reports. The report recalls eight years ago, CIBC came close to sealing the acquisition deal for the coveted stake, however, CL Financial Chairman Lawrence Duprey decided not to divest them. According CarribWolrdNews, the Ministry of Finance confirmed that CIBC executives have recently approached the institution and asked for a meeting for the possible buyout. As reported in the Troubled Company Reporter-Latin America on February 10, 2009, Trinidad and Tobago Express said Trinidad and Tobago President George Maxwell Richards signed the bailout bills for CL Financial Limited, giving the government the authority to control the company's unit, CLICO, and giving the central bank extensive powers to treat with CL Financial's collapse and the consequent systemic crisis. As reported by Reuters on January 30, 2009, the central bank said all third party assets and liabilities on the books of Clico and its Caribbean Money Market Brokers unit would be transferred to state-owned First Citizens Bank. Mr. Williams, the same report related, said the move is aimed to ensuring resources are available to meet withdrawals by bank depositors and by policyholders of the Clico Insurance company. Republic Bank's Depositor Confidence Returning Managing Director David Dulal-Whiteway told The Express in an interview that depositor's confidence in the Republic bank is returning as deposits increased by the end of last week. The Express relates that the bank had also recovered much of what had been taken out amid the mass withdrawals prompted by the bailout news. Last week, the Express recounts, the bank reported that as much as US$160 million had been withdrawn from Republic branches. Mr. Dulal-Whiteway, the same report notes, attributed positive development to statements from the Minister of Finance that clarified the state's involvement in the bank. According to a TCRLA reports on Feb. 10, citing The Express, in the midst of speculations that the government will interfere in Republic Bank's operations, Minister of Finance Karen Nunez- Tesheira said: "We assert that the Government has no intention of taking over Republic Bank, or getting involved in the operations of the Republic Bank." According to The Express, a joint statement by the Ministry of Finance and Republic Bank Ltd, stated: "The Minister of Finance reiterated that the Government does not intend to request a change in the board of directors, management or governance structure of Republic Bank. Work has already begun on the share divestment proposal and decisions will be made public in due course." About CL Financial According to Wikipedia, CL Financial is the largest privately held conglomerate in Trinidad and Tobago and one of the largest privately held corporations in the entire Caribbean. Founded as an insurance company, Colonial Life Insurance Company (CLICO) by Cyril Duprey, it was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. ================= V E N E Z U E L A ================= PDVSA: Joint Venture Plan With Petrobras Reaches Impasse -------------------------------------------------------- A joint venture between Petroleos de Venezuela ("PDVSA") and Petroleo Brasileiro SA (Petrobras) on a US$4 billion Abreu e Lima Refinery project in Pernambuco, Brazil may not come into fruition, various reports say. According to Dow Jones Newswires, citing the Estado News Agency, Paulo Roberto Costa, Petrobras' Supply and Refining director, said there was an impasse in the proposed oil refinery joint-venture due to PdVSA's attempts to impose conditions on its participation in the project, and this may lead to its being excluded. Mr. Costa, Reuters relates, told reporters that PDVSA's plan was not acceptable due to the pricing mechanism for the heavy crude that Venezuela would supply to the refinery and the plan for commercialization of the refined products. Reuters notes Mr. Costa said Petrobras was still committed to reaching an accord with PDVSA on the refinery in Pernambuco state. However, he said, "Without resolving these two impasses, there is no accord," the same report relates. About PDVSA Petroleos de Venezuela -- http://www.pdvsa.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. * * * Petroleos de Venezuela S.A. continues to carry a 'BB-' long-term corporate credit rating from Standard & Poor's with stable outlook. The rating was affirmed by S&P in April 2008. PDVSA: Will Not Reduce Workforce Amid Global Crisis --------------------------------------------------- Petroleos de Venezuela ("PDVSA") maintained that despite the financial status inside the oil business resulting from the global economic situation and falling oil prices, it will not cut its payroll, neither in its standard businesses nor its subsidiaries or mixed companies. At the same time, PDVSA has taken action to shield the contractual payroll of service companies. Therefore, the state-run oil holding has categorically rebutted the remarks made by spokespersons of the Venezuelan Workers' Confederation ("CTV"), intended only to scare workers and discourage the industry operations. CTV representatives, closely linked with opposition Gente del Petróleo movement, have used this way of policy making every time an election approaches. Now, they argue unreal layoffs to curb the ongoing revolutionary process throughout oil facilities. Over the past few days, PDVSA has been renegotiating current agreements with contractors, because in 2008, in the face of rising oil prices, the costs of service companies increased up to 40%. Now, as a result of falling oil prices, they need to adapt their excessive rates to the current scenario, as such an increase is not reasonable at this present time. Most of the debt reported by contractors comes from the climbing rates in 2008. Therefore, PDVSA ordered to pay the workers' salary as it makes headway with the remaining portion of the agreements. In this way, PDVSA seeks to ensure that contractors will timely pay all their workers, as part of its human resources policy that should govern all its businesses. This is the only reason why some contractors are using the ghost of alleged layoffs instead of making the requested price adjustment. PDVSA upholds the commitment of the revolutionary government to all its workers nationwide and urges oil-sector workers not to let themselves be manipulated by the sectors that have turned their back on workers' interests. About PDVSA Petroleos de Venezuela -- http://www.pdvsa.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. * * * Petroleos de Venezuela S.A. continues to carry a 'BB-' long-term corporate credit rating from Standard & Poor's with stable outlook. The rating was affirmed by S&P in April 2008. =============== X X X X X X X X =============== * CARIBBEAN ISLAND: Four Seasons Extends Closure Until October 31 ----------------------------------------------------------------- Four Seasons will extend the closure of its Nevis resort until October 31, 2009, to undergo a renovation resulting from impacts from Hurricane Omar, Caribbean Net News reports, citing Director of Public Relations Tara MacIntyre. The report recalls that the Hurricane passed through the islands of St Kitts and Nevis in October 2008. * BOND PRICING: For the Week February 9 – February 13, 2009 ----------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- Alto Palermo SA 7.875 05/11/17 USD 43.50 Argent-DIS 5.830 12/31/33 ARS 58.60 Argent-DIS 7.820 12/31/33 ARS 25.50 Argent-DIS 8.820 12/31/33 ARS 35.14 Argent-DIS 8.820 12/31/33 ARS 30.83 Argent-Par 0.630 12/31/38 ARS 13.33 Argnt-Bocon PRE8 2.000 01/03/10 ARS 56.76 Argnt-Bocon PR11 2.000 12/03/10 ARS 37.53 Argnt-Bocon PRE9 2.000 03/15/24 ARS 61.44 Argnt-Bocon PR12 2.000 01/03/16 ARS 61.43 Argnt-Bocon PR13 2.000 03/15/24 ARS 16.88 Arg Boden 2.000 09/30/14 ARS 37.99 Arg Boden 7.000 09/30/14 ARS 30.02 Argentina - NGB 2.000 01/03/16 ARS 49.49 Autopistas Sel S 11.500 05/23/17 USD 29.93 Banco Hipot SA 9.750 11/16/10 USD 63.26 Banco Hipot SA 9.750 04/27/16 USD 31.50 Banco Hipot SA 9.750 12/18/36 USD 33.11 Banco Hipot SA 9.750 12/18/36 USD 34.10 Bonar X 7.000 04/17/17 USD 37.38 Banco Macro SA 8.500 02/01/17 USD 54.18 Bonar V 7.000 03/28/11 USD 42.45 Bonar VII 7.000 09/12/13 USD 34.32 Bonar ARG $ V 10.500 10/09/17 ARS 43.50 Buenos Aire Prov 9.375 09/14/18 USD 22.57 Buenos Aire Prov 9.625 04/18/28 USD 22.43 Buenos-$DIS 9.250 04/15/17 USD 22.92 Buenos-$DIS 8.500 04/15/17 USD 19.00 Deutsche (Radars) 4.000 12/22/11 USD 63.49 Emp Distrib Nort 10.500 10/09/17 USD 45.00 Hidroelec Piedra 9.000 07/11/17 USD 55.99 Industries Metal 11.250 10/22/14 USD 50.01 Invers Rep Y Soc 8.500 02/02/17 USD 44.38 Mendoza Province 5.500 09/04/18 USD 32.25 Transener 8.875 12/15/16 USD 36.60 Trasport De Gas 7.875 05/14/17 USD 53.00 BRAZIL ------ Banco BMG SA 9.150 01/15/16 USD 73.25 Banco Cruzeiro 10.750 11/24/16 USD 69.42 Bertin Ltda 10.250 10/05/16 USD 51.75 Braskem SA 9.000 04/29/49 USD 72.50 BR Malls Int Fi 8.500 04/15/17 EUR 65.26 Cosan Finance 7.000 02/01/17 USD 68.75 Cosan SA Industr 8.250 02/28/49 USD 60.31 Cosan SA Industr 8.250 02/28/49 USD 51.62 JBS SA 10.500 08/04/16 USD 68.00 Independencia In 9.875 05/15/15 USD 63.00 Independencia In 9.875 01/31/17 USD 62.50 National Steel 9.875 05/29/49 USD 68.70 Rede Empresas 11.12 04/29/49 USD 45.75 RBS-Zero Hora Ed 11.25 06/15/17 BRL 53.17 Soc Gen Accept 0.750 12/21/11 EUR 40.22 Soc Gen Accept 7.000 02/27/13 EUR 13.46 Soc Gen Accept 8.000 12/20/13 EUR 20.90 Vigor 9.250 02/23/17 USD 47.68 CAYMAN ISLANDS -------------- 801 Grand B-2 1.225 09/20/16 USD 74.71 Aes Dominicana 11.000 12/13/15 USD 46.75 Aes Dominicana 11.000 12/13/15 USD 46.75 Agile Property 9.000 09/22/13 USD 56.50 Aig Sunamerica 5.625 02/01/12 GBP 74.24 Aig Sunamerica 6.375 10/05/20 GBP 50.84 Asif II 5.125 01/28/13 GBP 69.94 Bancaja Intl Fin 5.700 06/30/22 EUR 63.59 Banco BPI (CI) 4.150 11/14/35 EUR 65.35 Banco BPI (CI) 4.150 11/14/35 EUR 65.35 Banco Finance Co 4.239 10/29/49 EUR 37.50 Barion Funding 0.250 12/20/56 USD 5.93 Barion Funding 0.250 12/20/56 USD 5.93 Barion Funding 0.250 12/20/56 USD 5.93 Barion Funding 0.250 12/20/56 USD 5.93 Barion Funding 0.250 12/20/56 USD 5.93 Barion Funding 0.250 12/20/56 USD 5.93 Barion Funding 0.250 12/20/56 USD 5.93 Barion Funding 1.440 12/20/56 GBP 21.51 BBVA Bancomer SA 4.799 05/17/17 EUR 64.50 BBV Intl Fin 7.000 12/01/25 USD 70.34 BCP Finance Company 5.543 06/29/49 EUR 37.50 Bes Finance Limited 4.500 12/29/49 EUR 46.00 Bes Finance Limited 6.625 05/08/49 EUR 55.00 Bes Finance Limited 5.580 07/29/49 EUR 40.00 Bishopsgate Asse 5.107 09/29/37 GBP 70.37 Blue City Co 1.000 11/07/13 USD 69.08 Cam Global Fin 6.080 12/22/30 EUR 52.01 Castle Holdco 4 9.875 11/16/16 GBP 08.38 Castle Holdco 4 9.875 11/16/16 GBP 08.38 China Med Tech 3.500 11/15/11 USD 56.38 China Med Tech 4.000 08/15/13 USD 43.75 China Properties 9.125 05/04/14 USD 44.56 Country Garden 2.500 02/22/13 CNY 48.75 Credit Sail Ltd 8.500 12/22/12 NZD 6.00 DP World Sukuk 6.250 07/02/17 USD 56.97 DP World Sukuk 6.250 07/02/17 USD 61.85 Dubai Holding Comm 4.750 01/30/14 EUR 60.50 Dubai Holding Comm 6.000 02/01/17 GBP 57.50 DWR CYMN FIN 4.473 03/31/57 GBP 60.80 Embraer Overseas 6.375 01/24/17 USD 74.65 Embraer Overseas 6.375 01/24/17 USD 72.36 Embraer Overseas 6.375 01/24/17 USD 72.36 Esfg Internation 5.753 06/29/49 EUR 27.00 Gol Finance 7.500 04/03/17 USD 52.25 Gol Finance 7.500 04/03/17 USD 54.80 Gol Finance 8.750 04/28/49 USD 43.00 Greentown China 9.000 11/08/13 USD 35.00 Investcorp Cap 8.080 03/27/09 USD 74.05 Ja Solar Hold Company 4.500 05/15/13 USD 41.00 Lai Funding Holding 9.125 04/04/14 USD 61.62 Lupatech Finance 9.875 07/29/49 USD 73.25 M-2 SPC 7.770 12/20/12 USD 47.38 Mafrig Overseas 9.635 11/16/16 USD 67.75 Malachite Fdg 0.630 12/21/56 EUR 14.80 Mazarin Fdg Ltd 0.250 09/20/68 EUR 4.39 Mazarin Fdg Ltd 0.250 09/20/68 USD 4.39 Mazarin Fdg Ltd 0.250 09/20/68 USD 4.39 Mazarin Fdg Ltd 0.250 09/20/68 USD 4.39 Mazarin Fdg Ltd 0.250 09/20/68 USD 4.39 Mazarin Fdg Ltd 0.250 09/20/68 USD 4.39 Mazarin Fdg Ltd 0.630 09/20/68 GBP 9.50 Mazarin Fdg Ltd 1.440 09/20/68 GBP 20.13 Minerva Overse 9.500 02/01/17 USD 57.12 Mizuho Capital I 5.020 06/29/49 EUR 60.00 Mizuho Capital INV I 6.686 03/29/49 EUR 60.50 Mufg Cap Fin1 6.346 07/29/49 EUR 70.20 Mufg Cap Fin2 4.850 07/29/49 EUR 55.79 Mufg Cap Fin4 5.271 01/29/49 EUR 50.70 Mufg Cap Fin5 6.299 01/25/49 GBP 51.20 MMCaps XVIII Ltd 5.950 12/26/39 USD 15.88 MMCaps XVIII Ltd 5.950 12/26/39 USD 15.88 MMCaps XVIII Ltd 5.950 12/26/39 USD 15.88 New Asat Finance 9.250 02/01/11 USD 7.00 Pacific Life Fnd 3.650 06/15/15 EUR 72.20 Pacific Life Fnd 3.800 03/15/15 EUR 73.38 Pacific Life Fnd 3.800 12/15/15 EUR 71.95 Pacific Life Fnd 4.000 06/15/17 EUR 68.69 Prince Fin Global 4.500 01/26/17 EUR 71.00 Pubmaster Fin 6.962 06/30/28 GBP 65.62 Pubmaster Fin 6.962 06/30/28 GBP 41.36 Reg Div Funding 5.251 01/25/36 USD 47.11 Reg Div Funding 5.251 01/25/36 USD 47.11 Resona PFD Glob 7.191 12/29/49 USD 45.87 Seagate Tech HDD 6.800 10/01/16 USD 52.03 Seagate Tech HDD 6.375 10/01/11 USD 67.88 Shimao Property 8.000 12/01/16 USD 47.50 Shimao Property 8.000 12/01/16 USD 48.05 SMFG Preferred 6.078 01/29/49 USD 64.93 SMFG Preferred 6.164 01/29/49 USD 51.96 STB Finance 5.834 09/29/49 GBP 68.37 Struct Invest CP 2.000 07/30/16 USD 42.63 Subsea 2.800 06/06/11 USD 66.14 Sunamer Inst Fnd 6.150 10/14/19 EUR 52.94 Suntech Power 3.000 03/15/13 USD 47.75 Tam Capital Inc. 7.375 04/25/17 USD 54.96 Tam Capital Inc. 7.375 04/25/17 USD 52.87 Trina Solar Ltd 4.000 07/15/13 USD 34.75 UOB Cayman Limited 5.796 12/29/49 USD 68.04 Vestel Elec Fin 8.750 05/09/12 USD 59.84 Vontobel Cayman 8.350 03/27/09 USD 71.40 Vontobel Cayman 15.600 01/23/09 USD 11.00 Vontobel Cayman 12.150 02/20/09 USD 32.40 Vontobel Cayman 13.550 01/23/09 USD 55.00 Vontobel Cayman 10.550 03/27/09 USD 58.00 Vontobel Cayman 10.050 02/20/09 USD 21.80 Vontobel Cayman 11.300 04/24/09 USD 59.80 Vontobel Cayman 10.650 02/27/09 USD 35.60 Vontobel Cayman 15.750 01/23/09 USD 40.60 Vontobel Cayman 17.900 01/23/09 USD 40.60 XL Capital Limited 5.250 09/15/14 USD 64.49 XL Capital Limited 6.250 05/15/27 USD 52.77 XL Capital Limited 6.375 11/15/24 USD 54.84 XL Capital Limited 6.500 12/31/49 USD 14.50 CHILE ----- CAP 7.375 09/15/36 USD 72.71 CAP 7.375 09/15/36 USD 74.16 Codelco 5.625 09/21/35 USD 68.49 Codelco 5.625 09/21/35 USD 69.80 Codelco 6.150 10/24/36 USD 74.76 Codelco 6.150 10/24/36 USD 74.76 COSTA RICA ---------- CAP 7.375 09/15/36 USD 73.80 DOMINICAN REPUBLIC ------------------ Dominican Republic 8.625 04/20/27 USD 57.00 Dominican Republic 9.040 01/23/18 USD 72.15 ECUADOR ------- Ecuador-Par Strp 4.000 05/28/18 USD 69.05 Ecuador-Par Strp 4.000 02/28/25 USD 74.83 Ecua-Par B RCT 4.000 02/28/25 USD 52.46 EL SALVADOR ----------- El Salvador Rep 7.650 06/15/35 USD 73.30 El Salvador Rep 7.650 06/15/35 USD 74.13 JAMAICA ------- Jamaica Govt LRS 7.500 10/06/12 JMD 64.92 Jamaica Govt 8.000 06/24/19 USD 74.84 Jamaica Govt 8.000 03/15/39 USD 57.00 Jamaica Govt 8.500 02/28/36 USD 62.75 Jamaica Govt 9.250 10/17/25 USD 72.59 Jamaica Govt LRS 12.750 06/29/22 JMD 56.49 Jamaica Govt LRS 12.750 06/29/22 JMD 56.47 Jamaica Govt LRS 12.850 05/31/22 JMD 56.93 Jamaica Govt LRS 13.375 12/15/21 JMD 59.39 Jamaica Govt LRS 13.375 04/27/32 JMD 56.17 Jamaica Govt LRS 13.575 12/15/26 JMD 57.49 Jamaica Govt LRS 13.625 06/23/14 JMD 74.04 Jamaica Govt 14.000 06/30/21 EUR 62.27 Jamaica Govt 14.250 08/19/15 EUR 72.83 Jamaica Govt 14.375 09/13/14 EUR 65.14 Jamaica Govt LRS 14.400 18/03/27 JMD 62.56 Jamaica Govt LRS 14.500 16/28/17 JMD 70.54 Jamaica Govt LRS 14.500 08/02/17 JMD 69.39 Jamaica Govt LRS 15.000 07/31/16 JMD 73.13 Jamaica Govt LRS 15.000 11/15/21 JMD 66.05 Jamaica Govt LRS 15.000 08/30/32 JMD 64.86 Jamaica Govt LRS 15.000 09/06/32 JMD 50.35 Jamaica Govt LRS 15.500 03/24/28 JMD 65.09 Jamaica Govt LRS 15.750 08/22/19 JMD 70.85 Jamaica Govt LRS 16.000 05/17/17 JMD 74.97 Jamaica Govt 16.000 06/13/22 EUR 69.86 Jamaica Govt 16.000 12/06/32 EUR 67.21 Jamaica Govt LRS 16.250 05/22/27 EUR 73.21 Jamaica Govt LRS 16.250 08/26/32 EUR 70.36 Jamaica Govt LRS 16.250 07/26/32 EUR 68.32 Jamaica Govt LRS 16.250 06/18/27 EUR 70.51 Jamaica Govt LRS 16.150 06/12/22 EUR 70.49 Jamaica Govt LRS 16.150 06/12/22 EUR 72.38 Jamaica Govt LRS 16.250 05/22/22 EUR 70.88 Jamaica Govt LRS 16.250 05/22/27 EUR 68.50 Jamaica Govt LRS 16.500 06/14/27 EUR 69.57 Jamaica Govt LRS 17.000 07/11/23 EUR 73.49 MEXICO ------ Mer Lynch Int CV 8.000 01/30/09 CHF 31.20 Mer Lynch Int CV 10.760 03/16/09 CHF 37.99 Mer Lynch Int CV 11.200 03/16/09 CHF 30.89 Mer Lynch Int CV 11.330 03/16/09 CHF 69.30 Mer Lynch Int CV 11.400 03/16/09 CHF 62.11 Mer Lynch Int CV 11.660 03/16/09 CHF 11.41 Mer Lynch Int CV 11.720 03/16/09 CHF 29.69 Mer Lynch Int CV 11.730 03/16/09 CHF 74.74 Mer Lynch Int CV 12.200 03/16/09 CHF 20.54 Mer Lynch Int CV 12.460 03/16/09 CHF 35.10 Mer Lynch Int CV 12.760 03/16/09 CHF 22.29 Mer Lynch Int CV 13.100 03/16/09 CHF 48.83 Mer Lynch Int CV 13.280 03/16/09 CHF 11.83 Mer Lynch Int CV 13.720 03/16/09 CHF 52.67 Mer Lynch Int CV 14.000 04/09/09 CHF 38.50 Mer Lynch Int CV 14.530 03/16/09 CHF 21.22 Mer Lynch Int CV 14.890 03/16/09 CHF 29.54 Mer Lynch Int CV 15.220 03/16/09 CHF 16.62 Mer Lynch Int CV 15.520 03/16/09 CHF 28.82 Mer Lynch Int CV 16.330 03/16/09 CHF 11.93 Mer Lynch Int CV 16.380 03/16/09 CHF 8.99 Mer Lynch Int CV 16.450 03/16/09 CHF 27.29 Mer Lynch Int CV 16.800 03/16/09 CHF 25.95 Mer Lynch Int CV 17.140 03/16/09 CHF 17.14 Mer Lynch Int CV 18.000 03/27/09 CHF 68.45 Mer Lynch Int CV 18.020 03/27/09 CHF 59.20 Mer Lynch Int CV 19.110 03/16/09 CHF 6.82 Mer Lynch Int CV 19.380 03/16/09 CHF 1.71 PANAMA ------ Carnival Corp 6.650 01/15/28 USD 73.29 Willbros Group 2.750 03/15/24 USD 58.50 PERU ---- CFG Invest Sac 9.250 12/19/13 USD 66.87 PUERTO RICO ----------- Doral Finl Corp 7.000 04/26/12 USD 54.75 Doral Finl Corp 7.100 04/26/17 USD 71.50 Doral Finl Corp 7.650 03/26/16 USD 66.75 Puerto Rico Cons 6.500 04/01/16 USD 68.80 Puerto Rico GNMA 5.750 04/01/21 USD 61.89 URUGUAY ------- Uruguay 3.700 06/26/37 UYU 46.12 Uruguay 4.250 04/05/27 UYU 55.25 Uruguay 5.000 09/14/18 UYU 69.87 Uruguay Gov Bond 7.500 03/23/11 USD 69.98 Uruguay Gov Bond 7.500 03/23/11 USD 60.94 Uruguay Gov Bond 7.500 03/23/11 USD 60.94 Uruguay Gov Bond 7.500 03/23/11 USD 72.45 Uruguay Gov Bond 7.625 03/05/12 USD 53.70 Uruguay Gov Bond 8.000 02/25/10 USD 51.21 Uruguay Gov Bond 9.750 02/28/12 USD 57.21 Uruguay Gov Bond 9.750 02/28/12 USD 57.21 Uruguay Gov Bond 9.750 02/28/20 USD 57.41 VENEZUELA --------- Petroleos de Ven 5.250 04/12/17 USD 37.45 Petroleos de Ven 5.375 04/12/27 USD 32.00 Petroleos de Ven 5.500 04/12/37 USD 32.00 Venezuela 5.750 12/09/20 EUR 43.49 Venezuela 6.000 12/09/20 EUR 39.19 Venezuela 7.000 03/16/15 EUR 47.99 Venezuela 7.000 03/16/15 EUR 50.28 Venezuela 7.000 12/01/18 USD 44.64 Venezuela 7.000 03/31/38 USD 37.28 Venezuela 7.650 04/21/25 USD 44.00 Venezuela 8.500 10/08/14 USD 54.00 Venezuela 9.000 05/07/23 USD 45.50 Venezuela 9.250 09/15/27 USD 54.50 Venezuela 9.250 05/07/28 USD 46.50 Venzod - 189000 9.375 01/13/34 USD 47.00 Venzod - 189000 10.750 09/19/13 USD 67.00 Venezuela 10.750 09/19/13 USD 66.74 Venezuela 10.750 09/19/13 USD 67.43 Venezuela 13.625 08/15/13 USD 66.00 Venezuela 13.625 08/15/13 USD 66.37 Venezuela 13.625 08/15/13 USD 66.37 *********** 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. * * * End of Transmission * * *