/raid1/www/Hosts/bankrupt/TCRLA_Public/090430.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Thursday, April 30, 2009, Vol. 10, No. 84
Headlines
A R G E N T I N A
FUCEREP COOPERATIVA: Fitch Raises Issuer Default Rating to 'B'
GENTEAMAR SA: Trustee Verifying Proofs of Claim Until June 2
GRUPO ASUNCION: Trustee Verifying Proofs of Claim Until June 15
GRUPO ROXCELL: Trustee Verifying Proofs of Claim Until June 12
TELECOM ARGENTINA: Cut to “Hold” at Santander
TELECOM ARGENTINA: Argentina Court Suspends Shareholders Meeting
TELEMASS SA: Trustee Verifying Proofs of Claim Until June 18
B E R M U D A
XL CAPITAL: Posts US$178.4 Million First Quarter Net Income
B R A Z I L
BANCO DO BRASIL: Sees US$179 Million One-Time Gain in 1st Qtr
BRASKEM SA: Inks Additives & Colors Development Deal W/ Cromex
COMPANHIA DE SANEAMENTO: Fitch Holds Issuer Default Rating at 'BB'
EMBRATEL: Posts US$98.5 Million Net Profit in First Quarter
PERDIGAO SA: S&P Affirms Corporate Credit Rating at 'BB+'
SADIA SA: S&P Downgrades Corporate Credit Rating to 'B'
* BRAZIL: Local Banks Don't Need Stress Tests, Minister Says
C A Y M A N I S L A N D S
AUSTRAL OPPORTUNITIES: Placed Under Liquidation Proceedings
CI PURCHASER: Commences Wind-Up Proceedings
ETERNAL SPRING: Creditors' Proofs of Debt Due on May 27
FULTON FEEDER: Commences Wind-Up Proceedings
GREYSHRIKE GENERAL: Creditors' Proofs of Debt Due on May 27
GUGGENHEIM PARTNERS ET AL: Proofs of Debt Due on June 22
JPMORGAN FINANCIALS ET AL: Creditors' Proofs of Debt Due on May 27
MAXIMUS FUND: Creditors' Proofs of Debt Due on May 27
MEGARA LIMITED: Creditors' Proofs of Debt Due on May 27
MERIDIAN REAL: Commences Wind-Up Proceedings
NL DEVELOPMENT: Commences Wind-Up Proceedings
OLIVER PRESS: Placed Under Liquidation Proceedings
PETROPROD LTD: Court Appoints Provisional Liquidators
SOCO INTERNATIONAL: Commences Wind-Up Proceedings
XPOIMPO LIMITED: Commences Wind-Up Proceedings
C O L O M B I A
ECOPETROL: Analysts See Drop in First Quarter Net Profit
D O M I N I C A N R E P U B L I C
CAP CANA: Gets Bondholders OK to Exchange Bonds for New Notes
J A M A I C A
AIR JAMAICA: To Resume Barbados Flights for Summer Season
CABLE & WIRELESS: LIME Denies Columbus Acquisition Talks
SAGICOR LIFE: Redundancy Exercise Put on Hold
M E X I C O
GRUMA SAB: Posts First Quarter US$35.6 Million Net Loss
PROTEGO CASA: Has Short-Track Record, Gets 'B3' from Moody's
* MEXICO: Closes 35,000 Restaurants Due to Swine Flu Epidemic
U R U G U A Y
BANCO BILBAO: S&P Affirms 'BB-/B' Counterparty Credit Rating
BANCO COMERCIAL: Fitch Affirms Issuer Default Rating at 'BB-'
CITIBANK NA: S&P Affirms 'BB-/B' Counterparty Credit Rating
DISCOUNT BANK: S&P Affirms 'BB-/B' Counterparty Credit Rating
HSBC BANK: Fitch Affirms Foreign Issuer Default Rating at 'BB+'
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A R G E N T I N A
=================
FUCEREP COOPERATIVA: Fitch Raises Issuer Default Rating to 'B'
--------------------------------------------------------------
Fitch Ratings has taken these rating actions on FUCEREP -
Cooperativa de Ahorro y Credito:
-- Foreign and local currency Issuer Default Rating upgraded to
'B' from 'B-';
-- National long-term rating upgraded to 'BB+(uy)' from
'BB(uy)';
-- Support floor rating affirmed at 'NF';
-- Support rating affirmed at '5'.
Fitch has revised the Rating Outlook to Stable from Positive.
The ratings assigned to FUCEREP reflect its small size, modest
capitalization and good performance in the last three years. The
ratings also reflect the gradual implementation of a restricted
license (primarily limiting foreign currency activities) until
2010.
The approval of the restricted license (which has lower capital
requirements) by the Central Bank of Uruguay in November 2006
allows FUCEREP to concentrate on its current business plan. Fitch
observed improvements in 2008.
FUCEREP's performance in 2008 was correlated with that of the
Uruguayan financial system.
Low-quality loans (i.e. loans rated '3', '4' and '5') have
decreased in 2008 due to bigger controls in credit's origination
and because the institution stopped one of its products, which
originated more delinquency.
Deposits from residents were the main source of funds, in
particular its save product FONAE (48% of liabilities). Dollar-
denominated deposits represented 38% of liabilities. Liquidity is
adequate.
FUCEREP's capitalization is reasonable and its capital ratios are
1.4 times bigger than regulatory requirements. Fitch considers
that recent changes in the law of cooperatives could improve
FUCEREP'S solvency in the future because new capital could be
introduce in the company from different sources.
GENTEAMAR SA: Trustee Verifying Proofs of Claim Until June 2
------------------------------------------------------------
The court-appointed trustee for Genteamar S.A.'s reorganization
proceedings will be verifying creditors' proofs of claim until
June 2, 2009.
The trustee will present the validated claims in court as
individual reports on July 16, 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
September 11, 2009.
Creditors will vote to ratify the completed settlement plan
during the assembly on March 16, 2010.
GRUPO ASUNCION: Trustee Verifying Proofs of Claim Until June 15
---------------------------------------------------------------
The court-appointed trustee for Grupo Asuncion S.R.L.'s
reorganization proceedings will be verifying creditors' proofs of
claim until June 15, 2009.
The trustee will present the validated claims in court as
individual reports on August 12, 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
September 9, 2009.
Creditors will vote to ratify the completed settlement plan
during the assembly on March 8, 2010.
GRUPO ROXCELL: Trustee Verifying Proofs of Claim Until June 12
--------------------------------------------------------------
The court-appointed trustee for Grupo Roxcell S.A.'s bankruptcy
proceedings will be verifying creditors' proofs of claim until
June 12, 2009.
The trustee will present the validated claims in court as
individual reports on August 11, 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
September 23, 2009.
TELECOM ARGENTINA: Cut to “Hold” at Santander
---------------------------------------------
Telecom Argentina S.A. was downgraded to “hold” from “buy” at
Banco Santander SA, which cited regulatory “risk,” James Attwood
of Bloomberg News reports. Citing analysts Walter Chiarvesio and
Gregorio Tomassi, the reports relates Santander lowered its end-
2009 forecast for the company’s American depositary receipts to
US$9.90 from US$11.70
As reported in the Troubled Company Reporter-Latin America on
April 23, 2009, Dow Jones Newswires said the Argentine Competition
Commission rejected an appeal filed by Telecom Italia SpA that
challenged the agency's ruling earlier this month, locking Telecom
Italia directors from exercising voting powers in the company's
local unit, Telecom Argentina. Bloomberg News recalled Telecom
Italia's directors on Telecom Argentina's board were told to
abstain from exercising voting powers while the regulator
investigates Telco SpA's purchase of a controlling stake in
Telecom Italia.
“The risk of this happening has increased in recent months and
should be reflected in the stock price through a higher discount,”
analysts wrote in a note obtained by DJ Newswires.
According to Bloomberg News, Telefonica SA, Assicurazioni Generali
SpA, Intesa Sanpaolo SpA, Mediobanca SpA and the Benetton family
gained control of Telecom Italia, through holding company Telco,
in October 2007. Telco owns 24.5 percent of the Milan-based
company.
About Telecom Argentina
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- provides
telephone-related services, such as international long-distance
service and data transmission and Internet services, and through
its subsidiaries, wireless telecommunications services,
international wholesale services and telephone directory
publishing.
* * *
As reported in the Troubled Company reporter-Latin America on
Feb. 16, 2009, Standard & Poor's Ratings Services lowered Telecom
Argentina SA's foreign currency rating to B-/Stable/ and local
currency rating to B/Stable/. The outlook on both ratings is
stable.
TELECOM ARGENTINA: Argentina Court Suspends Shareholders Meeting
----------------------------------------------------------------
An Argentine court suspended Telecom Argentina SA’s April 28
shareholder meeting, ruling that it shouldn’t be held amid a ban
by the Argentine Competition Commission, the country's antitrust
agency, Drew Benson of Dow Jones Newswires reports.
As reported in the Troubled Company Reporter-Latin America on
April 23, 2009, Dow Jones Newswires said the Argentine Competition
Commission rejected an appeal filed by Telecom Italia SpA that
challenged the agency's ruling earlier this month, locking Telecom
Italia directors from exercising voting powers in the company's
local unit, Telecom Argentina. Bloomberg News recalled Telecom
Italia's directors on Telecom Argentina's board were told to
abstain from exercising voting powers while the regulator
investigates Telco SpA's purchase of a controlling stake in
Telecom Italia.
In addition to the antitrust investigation, DJ Newswires relates
Telecom Argentina said Brazil social security agency Anses,
planned to vote for directors at the now-suspended shareholders
meeting.
Anses, which holds 23% of Telecom Argentina’s outstanding shares,
is pushing for board seats at companies where it gained stakes
after President Cristina Fernandez de Kirchner nationalized
private pension funds last year, DJ Newswires says.
According to Bloomberg News, Telefonica SA, Assicurazioni Generali
SpA, Intesa Sanpaolo SpA, Mediobanca SpA and the Benetton family
gained control of Telecom Italia, through holding company Telco,
in October 2007. Telco owns 24.5 percent of the Milan-based
company.
About Telecom Argentina
Headquartered in Buenos Aires, Telecom Argentina S.A. --
http://www.telecom.com.ar/index-flash.html-- provides
telephone-related services, such as international long-distance
service and data transmission and Internet services, and through
its subsidiaries, wireless telecommunications services,
international wholesale services and telephone directory
publishing.
* * *
As reported in the Troubled Company reporter-Latin America on
Feb. 16, 2009, Standard & Poor's Ratings Services lowered Telecom
Argentina SA's foreign currency rating to B-/Stable/ and local
currency rating to B/Stable/. The outlook on both ratings is
stable.
TELEMASS SA: Trustee Verifying Proofs of Claim Until June 18
------------------------------------------------------------
The court-appointed trustee for Telemass S.A.'s bankruptcy
proceedings will be verifying creditors' proofs of claim until
June 18, 2009.
The trustee will present the validated claims in court as
individual reports on August 14, 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
September 30, 2009.
=============
B E R M U D A
=============
XL CAPITAL: Posts US$178.4 Million First Quarter Net Income
-----------------------------------------------------------
XL Capital Limited posted US$178.4 million net income for the
first quarter compared to US$211.9 million for the same period
last year.
Included in net income available to ordinary shareholders in the
first quarter of 2009 is a gain of US$211.8 million due to the
redemption of 12.7 million Series C preference ordinary shares.
Operating income was US$212.4 million compared with US276.9
million for first quarter of 2008. While the performance from the
company's P&C operations this quarter was strong, the ongoing
turbulence in the capital markets resulted in a loss of US$42.4
million from the investment fund and investment management
affiliates compared to a profit of US$24.7 million in the prior
year quarter. The current quarter's results were driven primarily
by the impact of the fourth quarter 2008 fair value adjustments in
the company's private fund investments offset by positive returns
from the company's alternative fund affiliates.
Net investment income for the quarter was US$348.0 million
compared to US$499.2 million in the prior year quarter. Net
investment income from P&C operations, excluding investment income
from structured products, decreased 21.4% from the prior year
quarter to US$242.2 million. The decrease was primarily due to
lower investment yields, driven by higher allocations to lower
yielding US Treasuries, agencies and cash as a result of the
continued de-risking of the investment portfolio and prudently
holding more liquidity in these turbulent markets, as well as a
higher level of shorter duration floating rate assets.
Pre-tax net realized investment losses for the quarter were
US$251.9 million compared to US$102.3 million in the first quarter
of 2008.
The loss for the first quarter of 2009 included other than
temporary impairments totaling US$285.0 million, of which US$80.6
million was associated with the company's decision to participate
in the Royal Bank of Scotland and Lloyds HBOS Tier I and Tier II
hybrid exchange offers, partially offset by realized gains on
securities sales of US$33.1 million. The realized loss in the
first quarter of 2008 included other than temporary impairments of
US$114.8 million.
The annualized return on ordinary shareholders' equity, based on
operating income, was 16.6% for the quarter compared to 12.9% in
2008.
About XL Capital
Headquartered in Hamilton, Bermuda, XL Capital Ltd provides
insurance and reinsurance coverages through its operating
subsidiaries to industrial, commercial and professional
service firms, insurance companies and other enterprises on a
worldwide basis. As of December 31, 2008, XL Capital Ltd reported
total invested assets of US$34.3 billion and shareholders' equity
of US$6.6 billion.
* * *
As reported by the Troubled Company Reporter-Latin America on
Feb. 18, 2009, Moody's Investors Service affirmed XL Capital Ltd's
"Ba1" preferred stock rating.
===========
B R A Z I L
===========
BANCO DO BRASIL: Sees US$179 Million One-Time Gain in 1st Qtr
-------------------------------------------------------------
Banco do Brasil SA said it will post a one-time gain of BRL393
million (US$179 million) in its first quarter financial report due
to recognition of tax credits during the period, Rogerio Jelmayer
of Dow Jones Newswire reports.
According to the report, the credits will generate a gain of
BRL1.213 billion but it will be offset, in part, by losses of
BRL820 million due to provisions for other liabilities.
Banco do Brasil will report first quarter earnings on May 14, the
report says.
Banco do Brasil SA is Brazil's federal bank and is the largest in
Latin America with some 20 million clients and more than 7,000
points of sale (3,200 branches) in Brazil, and 34 offices and
partnerships in 26 other countries. In addition to its
traditional retail banking services, Banco do Brasil underwrites
and sells bonds, conducts asset trading, offers investors
portfolio management services, conducts financial securities
advising, and provides market analysis and research.
* * *
As reported by the Troubled Company Reporter-Latin America on
Jan. 20, 2009, Fitch Ratings affirmed Banco do Brasil S.A.'s
Individual Rating at 'C/D'.
BRASKEM SA: Inks Additives & Colors Development Deal W/ Cromex
--------------------------------------------------------------
Braskem S.A. and Cromex signed a partnership to develop additives
and colors for the green plastic.
The products were especially developed to add performance in
productivity, quality and safety, preserving the environmental
aspects of the renewable source polyethylene April 2009 - Braskem
and Cromex disclosed the first partnership for developing special
products that will be used with the green polyethylene - a Braskem
innovation made from sugarcane ethanol.
This joint action by the two companies enabled Cromex to develop a
series of colors and additives that will add characteristics to
the green polyethylene like an anti-blocking barrier for UV rays,
antistatic and anti-fog features, respecting the products
fundamental sustainability properties.
Braskem s green polyethylene is the first one made from globally
certified sugarcane ethanol. The company is investing R$ 500
million in a new factory in the Triunfo Complex, in Rio Grande do
Sul, for the annual production of 200 thousand tons of product.
Luiz de Mendonça, vice-president responsible for Braskem’s
Polymers Unit, said the company is investing selectively in a high
return project, and confirming Braskem’s commitment with
innovation and sustainable development.
With this partnership, Cromex will develop a range of colors, from
opaque and transparent to more elaborate ones, with special
effects, such as pearled and metalized. Besides the colors, Cromex
will provide special additives to optimize resin processing and
final product performance. The objective is to serve the main
markets that demand green plastic, like the auto, toy, cosmetic
and personal hygiene industries, as well as packaging and others.
For Cromex, this is a partnership with great strategic value in
terms of innovation and sustainability for the plastic chain.
According to Sergio Wajsbrot, the company’s president, Cromex
wants to expand operations and be present in segments with higher
added value. The demand for green polyethylene has already been
identified as a great business opportunity and we are accompanying
this evolution, concluded the executive.
About Braskem S.A.
Braskem S.A. -- http://www.braskem.com.br/-- is a thermoplastic
resins producer in Latin America, and is among the three largest
Brazilian-owned private industrial companies. The company
operates 13 manufacturing plants located throughout Brazil, and
has an annual production capacity of 5.8 million tons of resins
and other petrochemical products. The company reported
consolidated net revenues of about US$9 billion in the trailing
twelve months through Sept. 30, 2007.
* * *
As reported by the Troubled Company Teporter-Latin America on
Jan. 23, 2009, Fitch Ratings affirmed Braskem S.A.'s ratings:
-- Foreign currency long-term Issuer Default Rating (IDR) at
'BB+';
-- Local currency long-term IDR at 'BB+';
-- National long-term rating at 'AA(bra)';
-- Unsecured senior notes due 2014, 2017, 2018 at 'BB+';
-- Unsecured senior perpetual bonds at 'BB+';
-- 13th debenture issue,at 'AA(bra)'.
COMPANHIA DE SANEAMENTO: Fitch Holds Issuer Default Rating at 'BB'
------------------------------------------------------------------
Fitch Ratings has affirmed these ratings on Companhia de
Saneamento Basico do Estado de Sao Paulo:
-- Local currency long-term Issuer Default Rating at 'BB';
-- Foreign Currency long-term IDR at 'BB';
-- International long-term rating for the $140 million notes
issued at 'BB';
-- National scale long-term rating at 'A+(bra)';
-- National scale long-term rating of the 6th debenture issue in
the amount of BRL600 million at 'A+(bra)';
-- National scale long-term rating of the 9th debenture issue in
the amount of BRL220 million at 'A+(bra)';
The Outlook remains Positive for the corporate ratings.
Sabesp's ratings are supported by its solid financial profile,
with high operating margins and robust cash flow from operations.
The ratings also benefit from its near monopoly position in its
business region of operation, as well as from the economies of
scale obtained as the largest water utility company in the
Americas in terms of number of customers. Among the rating
limiting factors, Fitch considered the operation in municipalities
without a service contract; the political risk inherent to its
public control; and the exposure to hydrological risk. The
ratings are also affected by moderate regulatory risk, as the
sector legislation still needs to mature, and by the company's
exchange exposure due to the volume of its foreign currency debt.
An upgrade in the ratings is associated with Sabesp maintaining
its credit protection measures at levels compatible with a better
risk classification, notwithstanding its more aggressive
investment program of BRL8.6 billion from 2009 to 2013; advances
in the signature of service contracts with important
municipalities served; and greater clarity regarding future rate
adjustments. In addition, the analysis will take into
consideration an adequate solution for the necessity of a high
volume of issuances to roll over debts, mainly in 2009, even in a
more unfavorable macroeconomic scenario in terms of financial cost
and term. It is also important the definition of the possible
acquisition of EMAE - Empresa Metropolitana de Aguas e Energia
S.A., including price and payment conditions, if it is concluded.
Sabesp presents strong operational cash generation. In 2008, net
revenues of BRL6.4 billion, EBITDA of BRL2.8 billion and cash flow
from operations of BRL2.5 billion were records for the company.
Its EBITDA margin of 45% remained high at the historical range of
40% to 50%. The operational performance benefited from a 5.1%
tariff readjustment in September 2008 and a 2.0% increase in the
water and sewage volume invoiced. The company's free cash flow
remained positive at BRL423 million, although strongly affected by
the BRL1.4 billion in investments and by the payment to the
Government of the State of Sao Paulo of BRL561 million as interest
on its own capital accumulated from 2004 to 2007. During the three
previous years the FCF had been above BRL1 billion.
Sabesp's credit measures remain consistent with the ratings
assigned, although affected by the devaluation of the Real and by
the lower FCF. The total debt/EBITDA ratio was 2.4 times (x), the
funds from operations adjusted leverage was 1.9x and interest
coverage by EBITDA was 3.4x.
For 2009 Fitch expects a total debt/EBITDA ratio in line with that
recorded in 2008.
Sabesp's debt profile has a non-recommended concentration of
maturities in the next three years. Its moderate liquidity and the
expected FCF indicate the necessity to roll over debts. Based on
the strength of its business and satisfactory track record of
access to the debt market, Fitch believes that Sabesp will
continue to succeed in accessing new financing lines, although
with higher financial costs. As of year-end 2008, Sabesp reported
total debt of BRL6.9 billion, above the BRL5.7 billion in 2007,
and cash and cash equivalents of BRL626 million. Around BRL3.4
billion of debt is coming due until 2011, with BRL1.4 billion in
the short term. New issuances of around BRL900 million shall be
necessary in the next months and new debt issuances will be needed
in the following years. Foreign currency debt accounted for 33%
of the total financial obligations, and this exposure is not
protected.
Sabesp's capital expenditures program is aggressive and should
have a negative impact on FCF in the coming years. The amount for
the period 2009 to 2013 is BRL8.6 billion, BRL1.7 billion of which
is for 2009. Sabesp intends to finance these investments with
operational cash generation and funds from federal institutions
and international organizations.
Sabesp operates public water and sewage service systems in the
State of Sao Paulo, serving 366 of the 645 existing
municipalities, as well as supplying water on a wholesale basis
for six municipalities in the metropolitan region of Sao Paulo,
treating the sewage for five of them. The company directly serves
23.2 million people with water supply and 19.2 million people with
sewage collection. Sabesp's coverage ratios are above 99% of the
population in its business area with water supply and 79% of the
population for sewage collection, being that 72% of the sewage
collected is treated. Sabesp is controlled by the State of Sao
Paulo, which holds 50.3% of the company's common and total shares.
EMBRATEL: Posts US$98.5 Million Net Profit in First Quarter
-----------------------------------------------------------
Embratel Participacoes SA posted BRL216.7 million (US$98.5
million) first-quarter net profit, down from BRL292.2 million a
year earlier, Rogerio Jelmayer of Dow Jones Newswires reports.
The company's earnings before interest, taxes, depreciation and
amortization (Ebitda) totaled BRL660.6 million in the first
quarter, up from BRL628.6 million a year earlier, according to the
report.
Embratel's Ebitda margin, the report relates, ended the period at
25.6%, down from 26.7% in the previous period.
DJ Newswires notes Embratel posted first quarter net revenue of
BRL2.58 billion, up 9.7% from a year earlier.
About Embratel
Embratel Participacoes SA -- http://www.embratel.com.br-- is a
major telecommunications carrier in Brazil. It offers up-to-date
telecommunications solutions to the Brazilian market including
local, long distance domestic and international calling; data,
video and Internet transmission. Embratel can provide services
all over the country through its satellite solutions. Embratel
has been part of the history of Brazil for 43 years, playing a
major role in the country's development.
Embratel is part of Telmex Internacional, S.A.B. de C.V., --
http://www.telmexinternacional.com-- a leading telecommunications
service operating in Brazil, Colombia, Argentina, Chile, Peru,
Uruguay and Ecuador, focused on the provision of a broad range of
services including voice, data, satellite and video transmission,
cable and satellite TV, access to the Internet and complete
telecommunications solutions, in addition to services related to
yellow pages directories in Mexico, United States, Argentina and
Peru.
* * *
As of April 30, 2009, Embratel Participacoes continues to carry
Moody's "Ba3" local currency issuer rating and "Ba3" senior
unsecured debt rating.
PERDIGAO SA: S&P Affirms Corporate Credit Rating at 'BB+'
---------------------------------------------------------
Standard & Poor's Ratings Services said that it affirmed its 'BB+'
long-term corporate credit rating on Brazil-based food producer
Perdigão S.A. The outlook is revised to negative from stable.
"The change in outlook reflects the more challenging operating
environment for food companies in general," said Standard & Poor's
credit analyst Flavia Bedran. Soft global demand and the
consequent decrease in margins in 2009 will lead to weaker cash-
flow-protection metrics. S&P expected Perdigao to reduce total
debt faster than it will be able to. S&P's revised projection
indicates that Perdigao should report a total debt-to-EBITDA ratio
of more than 3x by 2010, higher than S&P's original expectation of
2x by 2010. Even though the company might take longer to reach
the expected financial metrics that would support the current
rating, its comfortable liquidity and expected free cash-flow
generation give Perdigao the flexibility to adjust to current
market conditions.
The rating on Perdigao reflects its high exposure to unpredictable
events that are beyond the management team's control. These can
significantly affect the company's results, and include trade
barriers imposed by international governments, outbreaks of animal
diseases, the volatility of commodities prices affecting raw
material costs, and the significant share of low-value-added
commodity-like products in its portfolio. The company's
recognized brand name and leading market position in Brazil; its
diversified portfolio and low cost position (driven by its large
production scale, extensive distribution channel, and well-planned
operation); and prudent financial risk policies partially mitigate
the risks.
The negative outlook reflects the challenging operating
environment for food companies in general, given the considerable
decrease in external demand. Although it should take longer for
Perdigao to post credit metrics that S&P expected for the current
rating, its comfortable liquidity and expectation of free cash
flow generation give Perdigão the flexibility to adjust to current
market conditions. S&P could lower the rating if volumes and
margins do not gradually recover in upcoming quarters. If the
soft performance of first-quarter 2009 persists, leading to weaker
credit metrics for 2009 (such as total debt-to-EBITDA ratio of
more than 5x and funds from operations-to-total debt ratio lower
than 15%), S&P could lower the rating.
S&P could change the outlook to stable if external demand
stabilizes, domestic volumes rationalize, and Perdigao's business
diversification allows for margins in the range of 10% by 2010.
Credit metrics would need to allow for ratios more in line with
the current ratings. Rating stability also depends on moderate
financial policies and maintenance of a substantial cash
position.
SADIA SA: S&P Downgrades Corporate Credit Rating to 'B'
-------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term corporate credit rating on Brazil-based food producer Sadia
S.A. and its rating on Sadia Overseas Ltd.'s $250 million senior
unsecured notes to 'B' from 'BB'. The outlook on the corporate
credit rating is negative.
"The downgrade reflects Sadia's weaker operating performance and
expected significant deterioration of cash flow protection metrics
for 2009," said Standard & Poor's credit analyst Milena Zaniboni.
Due to the poor performance of export sales since fourth-quarter
2008, S&P has lowered its expectation for cash-flow generation for
the year, which, together with the higher leverage to finance the
company's losses with derivatives, will result in much weaker
credit metrics than incorporated in S&P's rating.
Although S&P expected a weaker financial profile in 2009, the
decrease in cash-flow generation that S&P expects for both 2009
and 2010 should limit the company's flexibility to reduce debt,
because discretionary cash flow will only turn positive in 2011.
As a consequence, Sadia's total debt-to-EBITDA ratio should remain
at a high 6x by 2010, significantly higher than S&P's previous
expectation of 4x. In addition to this aggressive leverage,
refinancing risk has increased, because 50% of total debt now
matures within one year.
The ratings on Sadia reflect its aggressive financial profile. The
company is highly leveraged and subject to refinancing risks,
operating in an inherently volatile meat industry. The company's
management lacks a track record for commitment to more prudent
financial policies and tighter governance practices. These
negative factors are balanced by Sadia's leading market position
in the food products industry Brazil and its very competitive
position in the global protein industry; its low-cost position and
resilient profitability levels compared to those of peers; and its
progressively more diversified product and client mix.
The outlook is negative as downside risks still prevail. For
2009, S&P expects EBITDA margins to recover after the second
quarter, and Sadia to be able to refinance its substantial short-
term debt (50% of the short-term exposure was already refinanced
in the first quarter). But the market remains uncertain, and a
weaker performance in 2009 could lead to a total debt-to-EBITDA
ratio of more than 10x. S&P could lower the rating if the
weakness expected for the first quarter persists throughout 2009,
leading to more negative cash flow and an increase in total debt.
A change in the outlook to stable would depend on a consistent
recovery of demand, sustained EBITDA margins close to 8%-9% and
the total debt-to-EBITDA ratio stabilizing at around 5x. S&P
would also expect improvements in the terms of new bank lines,
with a gradual increase in tenors somewhat alleviating refinancing
risks.
* BRAZIL: Local Banks Don't Need Stress Tests, Minister Says
------------------------------------------------------------
Brazilian banks remain profitable despite tougher credit
conditions, and are not in need of stress tests like U.S.
financial institutions, Walter Brandimarte of Reuters reports,
citing Brazil's Finance Minister Guido Mantega. "Our banks
already faced their stress tests with the derivatives issue," Mr.
Mantega was quoted by the report as saying.
According to the report, Mr. Mantega added state-owned Banco do
Brasil will keep lending responsibly and will gain market share.
The country continues to carry Moody's Rating Agency’s “Ba1” local
and foreign currency ratings.
==========================
C A Y M A N I S L A N D S
==========================
AUSTRAL OPPORTUNITIES: Placed Under Liquidation Proceedings
-----------------------------------------------------------
On April 7, 2009, the sole shareholder of Austral Opportunities
Fund passed a resolution that voluntarily winds up the company's
operations.
The company's liquidator is:
Avalon Ltd.
Mourant du Feu & Jeune
Telephone: (+1) 345 949 4123
Facsimile: (+1) 345 949 4647
CI PURCHASER: Commences Wind-Up Proceedings
-------------------------------------------
On April 15, 2009, the sole shareholder of CI Purchaser Limited
passed a resolution that voluntarily winds up the company's
operations.
The company's liquidator is:
Walkers SPV Limited
c/o Anthony Johnson
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
Telephone: (345) 914-6314
ETERNAL SPRING: Creditors' Proofs of Debt Due on May 27
-------------------------------------------------------
The creditors of Eternal Spring Limited are required to file their
proofs of debt by May 27, 2009, to be included in the company's
dividend distribtion.
The company commenced wind-up proceedings on April 14, 2009.
The company's liquidator is:
Lion International Corporate Services Limited
P.O. Box 484GT, Grand Cayman, KY1-1106
Cayman Islands
Telephone: (345) 949 7755
Facsimile: (345) 949-7634
FULTON FEEDER: Commences Wind-Up Proceedings
--------------------------------------------
On April 1, 2009, the sole shareholder of Fulton Feeder Fund Ltd.
passed a resolution that voluntarily winds up the company's
operations.
The company's liquidator is:
Walkers Corporate Services Limited
c/o Anthony Johnson
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
Telephone: (345) 914-6314
GREYSHRIKE GENERAL: Creditors' Proofs of Debt Due on May 27
-----------------------------------------------------------
The creditors of Greyshrike General Partner Limited are required
to file their proofs of debt by May 27, 2009, to be included in
the company's dividend distribtion.
The company commenced wind-up proceedings on April 3, 2009.
The company's liquidator is:
Ian Stokoe
c/o Miguel Brown
PO Box 258, Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 949 7000
Facsimile: (345) 945 4237
GUGGENHEIM PARTNERS ET AL: Proofs of Debt Due on June 22
--------------------------------------------------------
Jane Fleming fixed June 22, 2009, as the last day to file proofs
of debt for the creditors of:
-- Guggenheim Partners Equity Opportunity Fund (Cayman) Ltd;
-- Guggenheim Partners Prism Opportunity Fund (Cayman) Ltd; and
-- Guggenheim Partners Prism Opportunity Fund II (Cayman) Ltd.
The companies commenced wind-up proceedings on April 3, 2009.
The company's liquidator is:
Jane Fleming
PO Box 30464, Grand Cayman KY1-1202
Telephone :(345) 945-2187/ (345) 945-2197
JPMORGAN FINANCIALS ET AL: Creditors' Proofs of Debt Due on May 27
------------------------------------------------------------------
Roger Priaulx fixed May 27, 2009, as the last day to file proofs
of debt for the creditors of:
-- Jpmorgan Financials Total Return Master Fund Ltd.; and
-- Jpmorgan Financials Total Return Fund Ltd.
The companies commenced wind-up proceedings on April 14, 2009.
The Liquidator can be reached at:
Roger Priaulx
c/o Kim Charaman
Close Brothers (Cayman) Limited
Harbour Place, Fourth Floor
P.O. Box 1034, Grand Cayman KY1-1102
Telephone: (345) 949 8455
Facsimile: (345) 949 8499
MAXIMUS FUND: Creditors' Proofs of Debt Due on May 27
-----------------------------------------------------
The creditors of Maximus Fund Limited are required to file their
proofs of debt by May 27, 2009, to be included in the company's
dividend distribtion.
The company commenced wind-up proceedings on April 3, 2009.
The company's liquidators are:
Simon Whicker
Lauren Christie
PO Box 493, Grand Cayman KY1-1106
Cayman Islands
Telephone: 345-914-2663
Facsimile: 345-949-7164
MEGARA LIMITED: Creditors' Proofs of Debt Due on May 27
-------------------------------------------------------
The creditors of Megara Limited are required to file their proofs
of debt by May 27, 2009, to be included in the company's dividend
distribtion.
The company commenced wind-up proceedings on April 6, 2009.
The company's liquidator is:
Ellen J. Christian
c/o BNP Paribas Bank & Trust Cayman Limited
Royal Bank House, 3rd Floor
Shedden Road
George Town, Grand Cayman
Telephone: 345 945 9208
Fax: 345 945 9210
MERIDIAN REAL: Commences Wind-Up Proceedings
--------------------------------------------
On September 1, 2007, the shareholder of Meridian Real Estate
Investment Company II passed a resolution that voluntarily winds
up the company's operations.
The company's liquidators are:
Maples and Calder
c/o Messrs. Maples and Calder, Attorneys-at-law
P.O. Box 309, Ugland House
Grand Cayman KY1-1104, Cayman Islands
NL DEVELOPMENT: Commences Wind-Up Proceedings
---------------------------------------------
On April 15, 2009, the sole shareholder of NL Development, Ltd.
passed a resolution that voluntarily winds up the company's
operations.
The company's liquidator is:
Walkers SPV Limited
c/o Anthony Johnson
Walker House, 87 Mary Street, George Town
Grand Cayman KY1-9002, Cayman Islands
Telephone: (345) 914-6314
OLIVER PRESS: Placed Under Liquidation Proceedings
--------------------------------------------------
On April 7, 2009, the sole shareholder of Oliver Press Fund Ltd.
passed a resolution that voluntarily winds up the company's
operations.
The company's liquidator is:
Avalon Ltd.
Mourant du Feu & Jeune
Telephone: (+1) 345 949 4123
Facsimile: (+1) 345 949 4647
PETROPROD LTD: Court Appoints Provisional Liquidators
-----------------------------------------------------
On April 9, 2009, the Grand Court appointed S.L.C Whicker and K.
Beighton as the provisional liquidators of Petroprod Ltd.
The provisional Liquidators can be reached at:
S.L.C Whicker
K. Beighton
P.O. Box 309GT, Ugland House
South Church Street
George Town, Grand Cayman
SOCO INTERNATIONAL: Commences Wind-Up Proceedings
-------------------------------------------------
On April 14, 2009, the sole member of Soco International (Cayman)
Limited passed a resolution that voluntarily winds up the
company's operations.
The company's liquidator is:
Britannia Corporate Management Ltd.
Plantation House, 196 Raleigh Quay
Grand Cayman KY1-1104
P.O. Box 1968, Cayman Islands
Telephone: (345) 949 2700
XPOIMPO LIMITED: Commences Wind-Up Proceedings
----------------------------------------------
On April 15, 2009, the shareholder of Xpoimpo Limited passed a
resolution that voluntarily winds up the company's operations.
The company's liquidator is:
Commerce Corporate Services Limited
P.O. Box 694GT, Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
===============
C O L O M B I A
===============
ECOPETROL: Analysts See Drop in First Quarter Net Profit
--------------------------------------------------------
Colombian state-controlled oil company Ecopetrol SA will likely
report a drop in its first quarter net profit as the price of oil
tumbled in the past year, Inti Landauro of Dow Jones Newswires
reports, citing analysts.
A Dow Jones Newswires survey of five local analysts
produced a median estimate of 1.25 trillion Colombian pesos
(US$534 million), or COP37.48 per share, 34% less than the COP2.29
trillion reported in the same period in 2008.
"With the West Texas Intermediate averaging less US$50 a barrel
the company's revenues had to shrink and the outlook is gloomy if
price stays at that level," the report quoted Johanna Castro, a
market analyst with local brokerage Corredores Asociados, as
saying.
The report relates analysts expect oil prices to stay at current
levels in coming months, so that the company's net profit for 2009
will be significantly lower than the COP11.63 trillion booked in
2008.
According to the report, the company was able to limit the impact
of falling oil prices by increasing production from its existing
operations and the operations it bought in Colombia and Peru
earlier this year.
About Ecopetrol S.A.
Ecopetrol S.A. -- http://www.ecopetrol.com.co.-- is the largest
company in Colombia as measured by revenue, profit, assets and
shareholders' equity. The company is Colombia's only vertically
integrated crude oil and natural gas company with operations in
Colombia and overseas. Ecopetrol is one of the 40 largest
petroleum companies in the world and one of the four principal
petroleum companies in Latin America. It is majority owned by the
Republic of Colombia and its shares trade on the Bolsa de Valores
de Colombia S.A. (BVC) under the symbol ECOPETROL. The company
divides its operations into four business segments that include
exploration and production; transportation; refining; and
marketing of crude oil, natural gas and refined-products.
* * *
As reported by the Troubled Company Reporter-Latin America on
November 12, 2008, Fitch Ratings affirmed Ecopetrol S.A.'s
foreign and local currency issuer default ratings at 'BB+' and
'BBB-', respectively. The Rating Outlook is Stable.
==================================
D O M I N I C A N R E P U B L I C
==================================
CAP CANA: Gets Bondholders OK to Exchange Bonds for New Notes
-------------------------------------------------------------
Cap Cana S.A.'s has secured bondholders' approval to exchange
US$250 million in outstanding 2013 bonds for two new classes of
notes with longer maturities and less onerous short term debt
service requirements, LatinFrance reports, citing executives close
to the process.
The report relates the resort is offering holders of the 9.625%
2013s two new replacement securities that mature in 2016:
-- US$137.0 million 10.000% senior secured note; and
-- US$133.8 million 10.000% self liquidating recovery note that
behaves like a PIK note.
According to the report, the total principal amount of the new
bonds includes past due interest payments and what one investor is
calling an exchange premium.
The report notes Mayer Brown is advising Weston Group, Simpson
Thacher is advising Cap Cana and a group of bondholders engaged
Chadbourne & Parke for legal advice throughout the process.
About Cap Cana
Cap Cana S.A. is owner and developer of a resort complex (Cap
Cana) on the Dominican easter tip. The resort copmplex is being
developed as a multiuse luxury resort in the Caribbean with world-
class beaches, championship golf courses, yachting facilities and
other leisure amenities. The property consists of over 46 square
miles (119.9 square kilometers) of land, including a five-mile
(eight kilometer) coastline and 2.2 miles (3.5 kilometers) of one
of the most pristine beaches in the region. As of September 30,
2008, Cap Cana S.A. had invested approximately US$485 million in
infrastructure and other improvements.
* * *
As reported by the Troubled Company Reporter - Latin America on
Nov. 4, 2008, Fitch Ratings downgraded the rating on Cap Cana,
S.A.'s US$250 million senior secured notes from 'B' to 'CCC/RR4'.
The rating was also placed on Rating Watch Negative.
=============
J A M A I C A
=============
AIR JAMAICA: To Resume Barbados Flights for Summer Season
---------------------------------------------------------
Air Jamaica Limited will resume Barbados flights for the summer
months, Caribbean360.com reports. The report relates it will
operate a twice weekly service between New York and the Caribbean
island from July 2 to August 20.
According to the report, the company said the decision was taken
"in response to expected demand by Barbadian nationals in the tri-
state area traveling home for the summer".
As reported in the Troubled Company Reporter-Latin America on
April 1, 2009, Caribbean Net News said Air Jamaica cut its New
York-Barbados flights on April 20 and increased travel on other
routes as the airline aligns capacity to meet market demand.
Meanwhile, the report notes Air Jamaica is still moving ahead with
other cost-cutting measures, including the elimination of its
signature onboard champagne service in economy class on May 1.
About Air Jamaica
Headquartered in Kingston, Jamaica, Air Jamaica Limited --
http://www.airjamaica.com/-- was founded in 1969. It flies
passengers and cargo to almost 30 destinations in the Caribbean,
Europe, and North America. Air Jamaica offers vacation packages
through Air Jamaica Vacations. The company closed its intra-
island services unit, Air Jamaica Express, in October 2005.
The Jamaican government owned 25% of the company after it went
private in 1994. However, in late 2004, the government assumed
full ownership of the airline after an investor group turned over
its 75% stake. The Jamaican government does not plan to own Air
Jamaica permanently.
* * *
As reported by the Troubled Company Reporter-Latin America on
Nov. 6, 2008, Moody's Investors Service placed the debt ratings of
Air Jamaica Limited, B1 senior unsecured notes guaranteed by the
Government of Jamaica, on review for possible downgrade. The
review coincides with Moody's action placing the ratings of the
Government of Jamaica under review for downgrade on November 4,
2008.
CABLE & WIRELESS: LIME Denies Columbus Acquisition Talks
--------------------------------------------------------
Lime (formerly Cable & Wireless Jamaica), a unit of Cable &
Wireless plc, has denied media reports that it is in talks to
acquire Columbus Communications, which operates in Jamaica as
Flow, Jamaica Gleaner reports.
"Nothing of the sort, something so sensitive I would be aware of,"
LIME's vice-president of corporate communications, Errol Miller,
told Wednesday Business in an interview, the report relates.
The Gleaner notes executives of Columbus Communications are
adamant that the company is not up for sale. "Flow is not being
sold and I certainly would be aware of it," the report quoted Flow
Jamaica President and Chief Operating Officer Michelle English as
saying. "No discussion was held with anyone, Flow is not for
sale."
About LIME
Lime (formerly Cable & Wireless Jamaica) --
http://home.cwjamaica.com/ -- is a provider of national and
international fixed line services. The company is owned 82% by
Cable & Wireless plc. Cable & Wireless Jamaica also owns Jamaica
Digiport International Limited, a company which provides high
speed data and other telecommunications services exclusively to
freezone and offshore companies.
About Cable & Wireless
Headquartered in London, England, Cable & Wireless plc --
http://www.cw.com/-- is an international telecommunications
company. The Company offers mobile, broadband and domestic and
international fixed line services to homes, small and medium-sized
enterprises, corporate customers and governments. It operates in
39 countries through four major operations in the Caribbean,
Panama, Macau and Monaco & Islands. It operates through two
businesses: International and Europe, Asia & US. Its
International business operates full service telecommunications
companies through four major operations in the Caribbean, Panama,
Macau and Monaco and Islands. Its Europe, Asia & US provides
enterprise and carrier solutions to the largest users of telecom
services across the United Kingdom, continental Europe, Asia and
the United States. Its subsidiaries include Cable & Wireless UK,
Cable & Wireless Jamaica Ltd, Cable & Wireless Panama, SA, Cable &
Wireless (Barbados) Ltd and Monaco Telecom SAM.
* * *
As of March 17, 2009, Cable & Wireless plc continues to carry
Moody's "Ba3" long-term corporate family rating, "B1" senior
unsecured debt rating and "Ba3" probability of default rating with
a stable outlook.
The company also continues to Standard & Poor's "BB-" long-term
foreign and local issuer credit ratings and "B" short-term foreign
and local issuer credit ratings.
SAGICOR LIFE: Redundancy Exercise Put on Hold
---------------------------------------------
Sagicor Life Jamaica (formerly Life of Jamaica)'s plan to lay off
several positions this month was put momentarily on hold following
a meeting with the Bustamante Industrial Trade Union (BITU), Radio
Jamaica News reports.
"Well in the meeting with the company, the union had raised
certain concerns relating to the proposed redundancy," the report
quoted BITU President General Gayle as saying. "The company has
agreed to put those redundancies on hold and have further
discussion with the union to see how best they can treat the issue
of the redundancy. We are going to continue having meetings with
the company in pursuit of some level of understanding."
As reported in the Troubled Company Reporter-Latin America on
April 23, 2009, Radio Jamaica said Sagicor Life informed
BITU that the company will be cutting 75 jobs by April 30. The
report related BITU President General said clerical and
administrative employees are among those to be let go. The report
recalled last month several positions were cut
following Sagicor's acquisition of Blue Cross.
===========
M E X I C O
===========
GRUMA SAB: Posts First Quarter US$35.6 Million Net Loss
-------------------------------------------------------
Gruma, S.A.B. de C.V. posted a net loss of 491 million pesos
(US$35.6 million) in the first quarter, on currency derivatives,
Carlos Manuel Rodriguez of Bloomberg News reports. The report
relates the first quarter loss was wider from the 91.1 million
pesos loss in the year-earlier period. Sales meanwhile climbed
31% to 13.1 billion pesos, the report says.
The report recalls the company on March 24 reached an agreement
with Credit Suisse Group AG, Deutsche Bank AG and JPMorgan Chase &
Co. to borrow US$668.3 million to pay them back for currency
derivatives that plunged in value after the peso lost 20% in the
fourth quarter of 2008.
Bloomberg News notes Gruma said the losses stemming from currency
derivatives were 11.2 billion pesos as of Dec. 31. The deal with
the banks represents 87% of the open currency positions the
company had, the company added.
The report says the company's its derivatives had a negative value
of 1.36 billion pesos as of March 31.
The company’s debt may climb by two-thirds to about US$1.68
billion after the bank deal, Gruma Chief Financial Officer Raul
Alonso Pelaez told Bloomberg News in an interview.
Meanwhile, the report notes the company's debt fell to US$1.01
billion from US$1.02 billion in the fourth quarter of 2008, while
financing costs for Gruma climbed to 1.1 billion pesos in the
first three months of 2009, almost double the 655 million pesos in
the year-earlier period.
About Gruma, S.A.B.
Headquartered in Monterrey, Mexico, Gruma, S.A.B. de C.V. --
http://www.gruma.com-- is a corn flour and tortilla producer and
distributor. The company conducts its U.S. and European operations
principally through its subsidiary, Gruma Corporation, which
manufactures and distributes corn flour, packaged tortillas, corn
chips and related products. As of Dec. 31, 2007, Gruma held
approximately 8.62 % of the capital stock of Grupo Financiero
Banorte, S.A.B. de C.V.
* * *
As reported in the Troubled Company Reporter-Latin America on
April 5, 2009, Fitch Ratings has downgraded Gruma, S.A.B. de
C.V.'s ratings:
-- Foreign Currency Long-Term Issuer Default Rating to 'B+' from
'BB+';
-- Local Currency Long-Term IDR to 'B+' from 'BB+';
-- US$300 million perpetual bonds to 'BB-/RR3' from 'BB+'.
Fitch has also removed all ratings from Rating Watch Negative.
PROTEGO CASA: Has Short-Track Record, Gets 'B3' from Moody's
------------------------------------------------------------
Moody's Investors Service assigned its B3 long term and Not Prime
short term global local currency issuer ratings to Protego Casa de
Bolsa, S.A. de C.V. On its Mexican National Scale, Moody's
assigned long and short term issuer ratings of Ba3.mx and MX-4,
respectively. All these ratings have stable outlooks.
The ratings assigned to Protego reflect the company's modest size
and limited market share along with a modest array of products and
services offered, which limit the company's franchise. More
important, Protego is still challenged to improve on its
performance and to generate recurrent pre-tax earnings, thus
moving away from actual operating losses. Moody's also cited
Protego's relatively short track record and its modest
distribution capability as additional rating constrains.
Positive rating factors include Protego's very low risk profile
stemming primarily from its asset management business focus. The
company is run under conservative guidelines, which is supported
on an adequate framework to managing risks.
The long-term Mexican National Scale rating of Ba3.mx indicates
issuers or issues with weak creditworthiness relative to other
domestic issuers. The short-term Mexican National Scale rating of
MX-4 indicates that the issuer has weak ability to repay short-
term senior unsecured debt obligations relative to other domestic
issuers.
Protego is headquartered in Monterrey, Mexico. As of December
2008, Protego had around Mx$37 million in equity.
These issuer ratings were assigned to Protego Casa de Bolsa, S.A.
de C.V.:
-- Global local currency, long term: B3, stable outlook
-- Global local currency, short term: Not Prime
-- Mexican National Scale, long term: Ba3.mx, stable outlook
-- Mexican National Scale, short term: MX-4
* MEXICO: Closes 35,000 Restaurants Due to Swine Flu Epidemic
-------------------------------------------------------------
Mexico City Federal District closed some 35,000 restaurants until
May 5 due to the swine flu virus epidemic, Presina-Latina reports,
citing Federal District Secretary Jose Angel Avila.
According to the report, Juan de Dios Barba, leader of the Union
of Restaurant Owners, said they agree with the preventive measure
but called to reign in illegal businesses that will profit from
the closings.
The report relates shops and tourism reported millions in losses,
around 60% less for one week.
Federal Health Secretary Jose A. Cordova said the swine flu
epidemic has provoked 149 deaths, 1,995 infected and 776
hospitalized, the report notes.
=============
U R U G U A Y
=============
BANCO BILBAO: S&P Affirms 'BB-/B' Counterparty Credit Rating
------------------------------------------------------------
Standard & Poor's Ratings Services said that, on April 24, 2009,
it affirmed its 'BB-/B' counterparty credit rating on Banco Bilbao
Vizcaya Argentaria Uruguay S.A. The outlook remains stable.
"The ratings reflect the bank's ample financial position, its high
liquidity, and its adequate capitalization. However, as with its
Uruguayan peers, BBVA Uruguay still suffers from the low demand
for credit in a financial system that is still consolidating in a
difficult economic environment," said Standard & Poor's credit
analyst Delfina Cavanaugh.
While BBVA Uruguay focuses on granting loans to the largest
companies in Uruguay, it also offers a wide range of services and
products such as consumer loans, savings accounts in both U.S.
dollars and Uruguayan pesos, credit cards, and foreign exchange.
Since 2002, the bank's business strategy has been primarily
focused on companies and corporate banking (about 87% of its total
nonfinancial sector credit portfolio). However, over the past two
years, the bank has increasingly concentrated on expanding its
lending to individuals.
S&P believes BBVA Uruguay has an adequate capital base for its
current asset level and any potential growth. As of Dec. 31,
2008, its ratio of adjusted equity to assets, based on Standard &
Poor's methodology, was 7.7%.
The stable outlook on the global scale ratings reflects those of
the Uruguayan sovereign debt ratings. Ratings on the bank could be
upgraded if the sovereign ratings are upgraded, reflecting the
explicit support provided by its parent company, Banco Bilbao
Vizcaya Argentaria S.A. (AA/Negative/A-1+). "The stable outlook
assigned to BBVA Uruguay's national scale ratings reflects S&P's
expectation that the bank's commercial efforts will improve its
recurring revenues and maintain its position in the Uruguayan
financial system," Ms. Cavanaugh added.
BANCO COMERCIAL: Fitch Affirms Issuer Default Rating at 'BB-'
-------------------------------------------------------------
Fitch Ratings has affirmed Nuevo Banco Comercial's ratings:
-- Foreign and Local currency long-term Issuer Default Rating at
'BB-',
-- National Long Term Rating at 'AA(ury)'
-- Support Rating at '4';
-- Support Floor at 'B'.
The Rating Outlook is Stable.
NBC's ratings reflect the bank's strong national franchise, its
improving overall performance, and its high liquidity and
capitalization levels. The pressure on its operating revenues and
the impact on the bank's profitability of its significant asset
USD position were also taken into consideration.
NBC's net earnings rose considerably in 2008, mainly as a result
of the impact of foreign exchange gains on its significant asset
position in USD. However, the bank's operating revenues are under
pressure due to lower margins as a consequence of the rise in
liquidity requirements and the fall in international interest
rates that affected its placements in foreign banks. On the other
hand, fees are growing strongly. Fitch expects NBC's operating
performance to continue to be under pressure, although it could be
offset in part by foreign exchange gains if the local currency
devaluates further. While Fitch recognizes that the bank's
position in USD is generated by the main shareholder's decision to
maintain its investment in USD, this is considered negative for
NBC as it adds volatility to its profitability.
NBC's asset quality is adequate and its ratios have improved.
Although a significant proportion of loans (16.1% at end-2008)
fall under the higher risk categories 3, 4 and 5 because of the
stringent classification rules imposed by the Central Bank of
Uruguay, only 1.7% of the loan book is past-due (60 days or more
overdue, under local definitions). Loan loss reserves covered 4%
of total loans and 70% of past-due loans at end-2008, which is
considered adequate.
NBC's funding is mainly through deposits; liquidity continues to
be high, with liquid assets representing 51.8% of deposits and
short-term funds.
NBC's capitalization is adequate. Total equity represented 14.0%
of assets at end-2008. Fitch expects these ratios to go down as
lending continues to grow.
NBC is the second-largest private bank in Uruguay. Its market
presence is significant in all segments and it had 7.9% of the
banking system's assets at end-2008.
Advent International controls 60% of the bank's equity, with the
Uruguayan government still owning the remainder in the form of
preferred stock.
CITIBANK NA: S&P Affirms 'BB-/B' Counterparty Credit Rating
-----------------------------------------------------------
On April 24, 2009, Standard & Poor's Ratings Services' affirmed
its 'BB-/B' counterparty credit ratings on Citibank N.A. (Uruguay
Branch). The outlook remains stable.
The ratings reflect the bank's position as a branch of Citibank
N.A. New York, New York (A+/Negative/A-1). S&P assumes that,
absent the sovereign's direct intervention, the parent company
would ensure full and timely payment of the Uruguayan branch's
obligations.
The ratings on Citibank Uruguay are constrained by the sovereign
credit ratings on the Oriental Republic of Uruguay (BB-/Stable/B),
reflecting the sovereign intervention risk. The national scale
ratings exclude that risk and indicate the bank's position
relative to other financial institutions.
As of Dec. 31, 2008, total assets were UYP13.839 million
($569 million), making it the seventh-largest among the 12 private
banks operating in Uruguay, with a market share of 6%. Compared
with its operations in other countries, Citibank's Uruguay branch
is relatively small and focuses mainly on the wholesale business,
especially large multinational corporations. Nevertheless, the
Uruguayan branch offers a wide array of traditional and
nontraditional products to a small segment of corporations and
individuals, in line with Citibank's strategy for emerging
markets.
Citibank Uruguay works actively with the country's public sector.
It follows the same policies and procedures as Citigroup worldwide
–- mainly in risk management, credit, and the treasury sector. As
part of Citigroup's world network, the bank also benefits from a
great deal of financial flexibility and ongoing parental support
in its business lines and product development.
The stable outlook on Uruguay reflects the strengthening
macroeconomic conditions in the country, despite short-term risks
stemming from the difficult global economic environment and the
greater uncertainty regarding regional conditions. Given
Uruguay's significant debt burden and vulnerability to external
shocks amid still-high dollarization levels, consistent fiscal
responsibility over the next several months remains essential for
stabilizing the rating at the current level, especially in light
of Uruguay's presidential election later this year.
Outlook
The stable outlook on Citibank Uruguay reflects the outlook on
Uruguay's sovereign credit ratings. The stable outlook on the
national scale ratings means that S&P don't foresee substantial
changes to the bank's credit position versus other banks in the
Uruguayan financial system.
Ratings List
Ratings Affirmed
Citibank N.A. (Uruguay Branch)
Counterparty Credit Rating BB-/Stable/B
DISCOUNT BANK: S&P Affirms 'BB-/B' Counterparty Credit Rating
-------------------------------------------------------------
On April 28, 2009, Standard & Poor's Ratings Services affirmed its
'BB-/B' counterparty credit rating on Uruguay-based Discount Bank
Latin America S.A. The outlook remains stable.
The ratings reflect the bank's high liquidity levels and low
implicit risk in its type of business stemming from its
conservative asset assignment. The rating also incorporates the
flexibility provided by the bank's strategic foothold in Uruguay
to Israel Discount Bank Ltd. (BBB/Stable/A-2), DBLA's ultimate
holding company. Like its Uruguayan peers, the bank still suffers
from both the relative low level of intermediation in the country
and low interest rates. DBLA's global ratings are constrained by
the sovereign ratings.
Although DBLA is a small company, it's the group's only bank
operating in Latin America. The bank also benefits from the
activities of the group's other subsidiaries. DBLA is a universal
bank, active in the high-income segment. It is one of the market
leaders among private banks in the payroll business--it has
agreements with Uruguay's main unions and professional
associations. The bank's primary objectives for 2009 include:
holding a limited-risk portfolio that maintains current liquidity
levels; taking on low-risk clients; and increasing its fees and
services revenues to compensate for higher financial costs arising
from regulations and lower interest rates.
Total assets as of Dec. 31, 2008, amounted to Uruguayan pesos
15,074 ($619.1 million), of which 44.8% were liquid assets (cash
and securities), 34.2% interbank loans, and only 14.1% loans to
the nonfinancial private sector. Loans to financial institutions
increased 27%, to nearly 75% of its net loans.
Given the bank's conservative profile, asset quality has been
historically very good. Its portfolio is healthier than the
system's average and its liquidity levels are relatively high.
However, in the wake of a problematic loan (100% provisioned), the
nonperforming portfolio increased to 1.92% at the end of 2008.
Going forward, S&P expects DBLA's delinquency levels to move
gradually closer to their historical averages and to those of the
system. Reserve coverage, an elevated 234% at year-end 2008, also
appears ample compared with the risks found in the bank's loan
portfolio.
DBLA profitability is satisfactory and has been growing gradually
in recent years; currently, it's in line with pre-financial crisis
levels and slightly above the private–bank average. During 2008,
the bank reported an increase in its return on assets to 1.0% from
0.4% in 2007. Net income totaled UYU132 million -- a year-over-
year increase of more than 190%. In order to maintain its current
profitability, DBLA will have to further diversify its sources of
income, while increasing its reach within those niche markets
where it already has a presence.
Outlook
The stable outlook mirrors the outlook on the sovereign rating on
the Oriental Republic of Uruguay.
Ratings List
Ratings Affirmed
Discount Bank Latin America S.A.
Counterparty Credit Rating
Global Scale BB-/Stable/B
National Scale uyAA/Stable/--
Certificate Of Deposit BB-
HSBC BANK: Fitch Affirms Foreign Issuer Default Rating at 'BB+'
---------------------------------------------------------------
Fitch Ratings has affirmed HSBC Bank S.A.'s ratings:
-- Foreign currency Issuer Default Rating at 'BB+';
-- Local currency IDR at 'BBB-';
-- National long-term rating at 'AAA(uy)';
-- Support rating at 3.
The Rating Outlook is Stable.
The international ratings of HSBC Bank are constrained by those of
the sovereign. The bank's foreign currency IDR is at the country
ceiling, while its local currency IDR is two notches above that of
the Uruguayan sovereign. These ratings, along with the bank's
support rating, reflect the bank's solid ownership structure and
its shareholder's strong commitment to the bank.
HSBC Bank (Uruguay)'s operating revenues were strongly affected in
2008 by a sharp increase in non-interest expenses due to the
expansion of its commercial network and the pressure on its net
interest margin as a consequence of the rise in liquidity
requirements and the fall in international interest rates that
affected its placements in foreign banks. On the other hand, fees
are growing strongly and the bank benefited from the impact on its
balance sheet of the devaluation of the peso.
In 2007, the bank launched a growth plan, with ambitious targets
in terms of market share in lending to local individuals and
companies. This plan requires hefty investments that Fitch
believes will affect the bank's profitability in the next two or
three years but will then bear fruit.
Asset quality is healthy. At end-2008, past due loans (more than
60 days overdue, as per the local definition) represented only
0.3% of the total.
The primary funding sources are non-resident deposits, which made
up 67.5% of total deposits at end-2008, the majority of these
corresponding to Argentine depositors. Liquidity remains high,
and is enhanced by credit lines available from HSBC USA.
The bank's capitalization is adequate. Although equity
represented only 7.25% of total assets (or 16% of risk-weighted
assets) at end-2008, Fitch believes that the strength of its
parent compensates for this, as demonstrated by the various
capital increases carried out since 2003.
HSBC Bank (Uruguay) offers personal banking services as well as
commercial banking services to important clients of the HSBC
Group. Bank (Uruguay) is fully owned by HSBC Latin America
Holdings (UK) Limited, which in turn is a subsidiary of HSBC
Holdings Plc.
===============
X X X X X X X X
===============
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Apr. 28-30, 2009
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
Intercontinental Hotel, Chicago, Illinois
Contact: www.turnaround.org
May 1, 2009
AMERICAN BANKRUPTCY INSTITUTE
Nuts and Bolts for Young Practitioners
Alexander Hamilton Custom House, New York City
Contact: 1-703-739-0800; http://www.abiworld.org/
May 4, 2009
AMERICAN BANKRUPTCY INSTITUTE
New York City Bankruptcy Conference
New York Marriott Marquis, New York City
Contact: 1-703-739-0800; http://www.abiworld.org/
May 7-8, 2009
RENASSANCE AMERICAN MANAGEMENT, INC.
6th Annual Conference on
Distressted Investing - Europe
The Le Meridien Piccadilly Hotel, London, U.K.
Contact: 1-903-595-3800 or
http://www.renaissanceamerican.com/
May 7-10, 2009
AMERICAN BANKRUPTCY INSTITUTE
27th Annual Spring Meeting
Gaylord National Resort & Convention Center
National Harbor, Maryland
Contact: http://www.abiworld.org/
May 12-15, 2009
AMERICAN BANKRUPTCY INSTITUTE
Litigation Skills Symposium
Tulane University, New Orleans, La.
Contact: http://www.abiworld.org/
May 14-16, 2009
ALI-ABA
Chapter 11 Business Reorganizations
Langham Hotel, Boston, Massachusetts
Contact: http://www.ali-aba.org
June 11-14, 2009
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa
Traverse City, Michigan
Contact: http://www.abiworld.org/
June 21-24, 2009
INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY &
BANKRUPTCY PROFESSIONALS
8th International World Congress
TBA
Contact: http://www.insol.org/
July 16-19, 2009
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Mt. Washington Inn
Bretton Woods, New Hampshire
Contact: http://www.abiworld.org/
July 29-Aug. 1, 2009
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Conference
The Westin Hilton Head Island Resort & Spa,
Hilton Head Island, S.C.
Contact: http://www.abiworld.org/
Aug. 6-8, 2009
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Conference
Hotel Hershey, Hershey, Pa.
Contact: http://www.abiworld.org/
Sept. 10-11, 2009
AMERICAN BANKRUPTCY INSTITUTE
Complex Financial Restructuring Program
Hyatt Regency Lake Tahoe, Incline Village, Nevada
Contact: http://www.abiworld.org/
Sept. 10-12, 2009
AMERICAN BANKRUPTCY INSTITUTE
17th Annual Southwest Bankruptcy Conference
Hyatt Regency Lake Tahoe, Incline Village, Nevada
Contact: http://www.abiworld.org/
Oct. 2, 2009
AMERICAN BANKRUPTCY INSTITUTE
ABI/GULC "Views from the Bench"
Georgetown University Law Center, Washington, D.C.
Contact: http://www.abiworld.org/
Oct. 5-9, 2009
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Desert Ridge, Phoenix, Arizona
Contact: 312-578-6900; http://www.turnaround.org/
Oct. 20, 2009
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Paris Las Vegas, Las Vegas, Nev.
Contact: http://www.abiworld.org/
Dec. 3-5, 2009
AMERICAN BANKRUPTCY INSTITUTE
21st Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, California
Contact: 1-703-739-0800; http://www.abiworld.org/
Apr. 29-May 2, 2010
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa, Traverse City, Michigan
Contact: 1-703-739-0800; http://www.abiworld.org/
July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Ocean Edge Resort, Brewster, Massachusetts
Contact: 1-703-739-0800; http://www.abiworld.org/
July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Conference
The Ritz-Carlton Amelia Island, Amelia, Fla.
Contact: http://www.abiworld.org/
Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hyatt Regency Chesapeake Bay, Cambridge, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 4-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
JW Marriott Grande Lakes, Orlando, Florida
Contact: http://www.turnaround.org/
Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
22nd Annual Winter Leadership Conference
Camelback Inn, Scottsdale, Arizona
Contact: 1-703-739-0800; http://www.abiworld.org/
Mar. 31-Apr. 3, 2011
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center, Maryland
Contact: 1-703-739-0800; http://www.abiworld.org/
June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort and Spa
Traverse City, Michigan
Contact: http://www.abiworld.org/
Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
23rd Annual Winter Leadership Conference
La Quinta Resort & Spa, La Quinta, California
Contact: 1-703-739-0800; http://www.abiworld.org/
***********
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 2009. 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 * * *