/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/090904.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Friday, September 4, 2009, Vol. 10, No. 175 Headlines A N T I G U A & B A R B U D A STANFORD INT'L: Receiver Defends Fees Amid SEC & Investors Protest STANFORD INT'L: Owner Faces Lawsuit Over Unpaid Gambling Debts * ANTIGUA & BARBUDA: Names New Financial Regulatory Head A R G E N T I N A ALUAR ALUMINIO: Moody's Assigns 'B2' Rating on New Senior Notes BANCO COMAFI: Moody's Cuts Global Local Cur. Deposit Rating to Ba3 BANCO CREDICOOP: Moody's Cuts Deposit Rating to Ba2 From Ba1 BANCO DE GALICIA: Moody's Cuts Deposit Rating Downgraded to Ba3 BANCO DE LA CIUDAD: Moody's Cuts Cur. Deposit Rating to Ba2 BANCO DE SANTIAGO: Moody's Cuts Deposit Rating to Ba3 From Ba2 BANCO DEL TUCUMAN: Moody's Cuts Deposit Rating to Ba2 From Ba1 BANCO FINANSUR: Moody's Cuts Deposit Rating to B2 From B1 BANCO HIPOTECARIO: Moody's Cuts Deposit Rating to Ba2 From Ba1 BANCO MACRO: Moody's Cuts Global Local Cur. Deposit Rating to Ba2 BANCO PATAGONIA: Moody's Cuts Deposit Rating to Ba2 From Ba1 BANCO PIANO: Moody's Cuts Global Local Cur. Deposit Rating to Ba3 BANCO REGIONAL: Moody's Cuts Deposit Rating to Ba3 From Ba2 BANCO SUPERVIELLE: Moody's Cuts Deposit Rating to Ba3 From Ba2 INTERVIEW SRL: Trustee Verifying Proofs of Claim Until October 22 LUD NAZAROVA: Proofs of Claim Verification Due on November 20 MEDIGUARDIA SA: Trustee Verifying Proofs of Claim Until Sept. 18 NUEVO BANCO: Moody's Cuts Global Local Cur. Deposit Rating to B1 NUEVO BANCO BISEL: Moody's Cuts Deposit Rating to Ba2 From Ba1 NUEVO BANCO DE LA RIOJA: Moody's Cuts Deposit Rating to Ba3 ORGANIZACION SUINDA: Creditors' Proofs of Debt Due on Nov. 10 SBA SERVICIOS: Proofs of Claim Verification Due on September 30 SEFRAMA SRL: Creditors' Proofs of Debt Due on October 29 SERUCIAL SA: Proofs of Claim Verification Due on September 22 SOUTHERN BUILD: Creditors' Proofs of Debt Due on October 14 TELECOM ARGENTINA: Telcom Italia Can't Vote at Firms' Assembly YPF SA: May Sell Up to US$78 Million in Bonds B E R M U D A BERNARD L.MADOFF: Insurers Reach Partial Accord in Madoff Lawsuit STEWARDSHIP CREDIT: Creditors & Contributories to Meet on Sept. 25 B R A Z I L BANCO NACIONAL: Gov't May Capitalize Bank to Fund Oil Exploration BANCO SANTANDER: Brazil Unit Files IPO for US$200 Million BRASIL FOODS: To Transfer BRL2.55 Billion Fund to Sadia SA BRASIL FOODS: To Invest BRL1 Billion in 2010 BR MALLS: S&P Changes Outlook to Stable; Affirms 'BB-' Rating COMPANHIA SIDERURGICA: Taps Morgan Stanley & Itau for Bond Sale COSAN SA: Upgraded to “Overweight” at HSBC Holdings Plc CSN ISLANDS: S&P Assigns Senior Unsecured Debt Rating at 'BB+' CSN ISLANDS: Moody's Assigns 'Ba1' Rating on US$750 Mil. Notes ENERGISA SA: Studies Local Share Issue GOL LINHAS: Slumping Oil Prices May Cut Company Costs MULTIPLAN EMPREENDIMENTOS: S&P Raises Corp. Credit Rating to 'BB+' SADIA SA: To Get Additional BRL2.55 Billion From Brasil Foods SADIA SA: Board Fires CEO; Names Cardoso de Lucena as Replacement TAM SA: Files Amended 2007 Annual Report USINAS SIDERURGICAS: Hikes Flat Steel Prices by 10% to 12% * BRAZIL: Minister Suggests Raising Import Tariffs on US Products C A Y M A N I S L A N D S APHELION GENERAL: Shareholders to Hear Wind-Up Report Today CITRON INVESTMENTS: Shareholders' Final Meeting Set for Today COREVEST NEW: Shareholder Receives Wind-Up Report DMS FIXED: Shareholder Receives Wind-Up Report DMS FIXED: Shareholder Receives Wind-Up Report FAYE CAPITAL: Shareholders' Final Meeting Set for Today J.P. MORGAN: Members Receive Wind-Up Report KINSALE INVESTMENTS: Shareholders' Final Meeting Set for Today MPII SPECIAL: Shareholders' Final Meeting Set for Today TORNESS LIMITED: Members Receive Wind-Up Report URALSIB PRIVATE: Members Receive Wind-Up Report VELOS BALKAN: Shareholders to Hear Wind-Up Report on September 4 WESTPEAK EUROPE: Shareholders' Final Meeting Set for Today WHITNEY JAPAN: Shareholders to Hear Wind-Up Report on September 4 ZEST INVESTMENTS: Shareholders Receive Wind-Up Report ZEST INVESTMENTS: Shareholders Receive Wind-Up Report C O L O M B I A ECOPETROL SA: Offers US$1.5 Billion 2019 Debt Swap E C U A D O R TELEAMAZONAS: Ecuador Backs Off Closing Network Over Broadcast * ECUADOR: Won't Close TV Network on Broadcast Reasons E L S A L V A D O R * EL SALVADOR: Government and ECLAC Sign Cooperation Agreement J A M A I C A CABLE & WIRELESS: LIME Teams Up With Claro to Cut Call Rates DIGICEL GROUP: Pays US$1.2 Million for Broadband License IBEROSTAR HOTEL: Management in Talks with Union on Job Cuts JPSCO: Recovers JM$1 Billion in Stolen Electricity in Three Years SUPER PLUS: Sells Pavillion Plaza Outlet to Hi-Lo Supermarket M E X I C O AXTEL SAB: Moody's Affirms Corporate Family Rating at 'Ba2' CABLEMAS SA: S&P Raises Long-Term Corporate Credit Rating to 'BB+' COMERCI: Bondholder Deal “Very Positive,” Citigroup Says * MEXICO: Antitrust Agency Sets Wireless Auction Limits V E N E Z U E L A CHRYSLER LLC: Venezuela Slaps Unit With US$6 Million Fine CITGO PETROLEUM: Stability Threatened by Government Moves GENERAL MOTORS: To Reopen Venezuela Assembly Plant PETROLEOS DE VENEZUELA: Oil Unions Complain of Election Delays PETROLEOS DE VENEZUELA: Obliged to Import Gasoline PETROLEOS DE VENEZUELA: Government Moves Hurting Citgo Petroleum PETROLEOS DE VENEZUELA: To Take Control of Powerhouse PETROLEOS DE VENEZUELA: Petropar Protests Irregularities in Deal * VENEZUELA: Resumes Talks With Paraguay on Fuel Debt * VENEZUELA: Tax Agency Slaps Chrysler LLC With US$6MM Payment * VENEZUELA: Legislators OK Conditions For Local Dollar Bond Sales - - - - - =============================== A N T I G U A & B A R B U D A =============================== STANFORD INT'L: Receiver Defends Fees Amid SEC & Investors Protest ------------------------------------------------------------------ Stanford Financial Group court-appointed receiver, Ralph Janvey, defended his request for US$27.5 million in fees after the U.S. Securities and Exchange Commission said he was using too much of the estate, Laurel Brubaker Calkins and Andrew M. Harris at Bloomberg News report. “The actions required to dismantle the Stanford network would be absolutely necessary, and costly, whether the remaining assets had US$1 billion or US$1,000 in net value,” Kevin Sadler, Mr. Janvey's attorney, said in a note obtained by the news agency. “Unwinding of this estate will never occur spontaneously,” Mr. Sadler added. According to the report, Mr. Janvey has paid out US$31 million in “operations and wind down costs unrelated to professional fees and expenses” and worked for six months without repayment. The report relates that Mr. Sadler said the SEC approved Mr. Janvey’s plans from the start, “but after they were completed, the SEC balked at the inevitable costs.” Bloomberg News notes that the fee Mr. Janvey requested for his first 14 weeks of work equals more than a third of the US$81.1 million in cash the estate had on hand at the end of July. The report relates that accounting and law firms working with Mr. Janvey discounted their typical billing rates by 20% out of concern for how little Mr. Stanford’s investors will recover. As reported in the Troubled Company Reporter-Latin America on September 1, 2009, Bloomberg News noted that court-appointed examiner John J. Little, who is representing investors’ interests, said that Mr. Janvey is spending so much money to recover so few Stanford assets that nothing may be left for defrauded customers. “ At this rate of consumption, simple math suggests the substantial possibility that the whole of the receivership estate could end up, not in the hands of the victimized investors, but in the pockets of the receiver and the firms [Mr. Janvey] has retained,” the report quoted Mr. Little, with Little Pedersen Fankauser LLP in Dallas, as saying. Bloomberg News related that the U.S. Securities and Exchange Commission objected to Mr. Janvey’s fee request and asked the judge overseeing the case to bar reimbursement for any of the receiver’s work on so-called clawback lawsuits against Stanford’s investors. According to the report, Mr. Little and the SEC asked U.S. District Judge David Godbey in Dallas to reduce Mr. Janvey’s fees by an additional 20%, even though Mr. Janvey said the firms working with him already have discounted their billings by 20% out of concerns for how little money Stanford’s investors will get back. The report added that Mr. Little and the SEC criticized Mr. Janvey for using too many high-priced lawyers and accountants and for not providing sufficiently detailed billing records and receipts to back up invoices. Meanwhile, Bloomberg News notes that Mr. Sadler said Mr. Janvey is obligated to pursue the clawback suits and probably will continue to seek about US$60 million in interest paid to Stanford clients on the Antiguan CDs, even if the U.S. Court of Appeals in New Orleans blocks his attempt to recover the investors’ principal. U.S. District Judge David Godbey in Dallas has scheduled oral arguments over Janvey’s fee request for September. 10, the report relates. About Stanford International Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. On February 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. The U.S. Securities and Exchange Commission, on Feb. 17, charged before the U.S. District Court in Dallas, Texas, Mr. Stanford and three of his companies for orchestrating a fraudulent, multi- billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. A criminal case was pursued against him in June before the U.S. District Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21 charges of multi-billion dollar fraud, money-laundering and obstruction of justice. Assistant Attorney General Lanny Breuer, as cited by Agence France-Presse News, said in a 57-page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on the criminal charges. The criminal case is U.S. v. Stanford, H-09-342, U.S. District Court, Southern District of Texas (Houston). The civil case is SEC v. Stanford International Bank, 3:09-cv-00298-N, U.S. District Court, Northern District of Texas (Dallas). STANFORD INT'L: Owner Faces Lawsuit Over Unpaid Gambling Debts -------------------------------------------------------------- Bellagio, a Las Vegas casino owned by MGM Mirage, has filed a lawsuit in Nevada's Clark County district court accusing Robert Allen Stanford -- the financier accused of orchestrating a multi- billion Ponzi scheme -- of running up gaming losses in January barely a month before he was arrested by U.S. authorities, Andrew Clark at guardian.co.uk reports. The report relates that the casino said Mr. Stanford has around US$258,480 (GBP160,000) in unpaid gambling debts. According to the report, citing the Las Vegas Sun newspaper, Mr. Stanford signed for 14 gambling markers but when the casino presented them for payment at a Miami bank on February 19, all of the markers bounced. The report relates that the Bellagio's lawsuit seeks payment of the alleged debt, plus interest calculated at an annual rate of 18% and recompense for legal costs. In an e-mail to The Guardian, Mr. Stanford's Houston-based lawyer, Dick DeGuerin, said Mr. Stanford had been unable to pay the Bellagio because of a freeze on his assets imposed by the U.S. Securities and Exchange Commission. The report relates that Mr. DeGuerin said the casino ought to sue the receivers of Stanford International. "It's a valid personal debt and should be honored, but the receiver is interested only in selling all the assets for a fraction of their worth, and billing US$30 million [so far] for his efforts," the report quoted Mr. DeGuerin as saying. Meanwhile, Laurel Brubaker Calkins at Bloomberg News relates that Mr. Stanford returned to jail after a five-day hospital stay to undergo heart testing. “They did find an aneurism in his leg, but they classified it as an elective surgery,” Dick DeGuerin told the news agency in a phone interview. The report relates that Mr. Stanford underwent a heart catheterization procedure to determine whether he needed further treatment. Bloomberg News recalls that Mr. Stanford was rushed to the hospital with a pulse rate of 300 beats per minute on August 27, shortly before he was to appear in federal court in Houston. About Stanford International Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. On February 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. The U.S. Securities and Exchange Commission, on Feb. 17, charged before the U.S. District Court in Dallas, Texas, Mr. Stanford and three of his companies for orchestrating a fraudulent, multi- billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. A criminal case was pursued against him in June before the U.S. District Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21 charges of multi-billion dollar fraud, money-laundering and obstruction of justice. Assistant Attorney General Lanny Breuer, as cited by Agence France-Presse News, said in a 57-page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on the criminal charges. The criminal case is U.S. v. Stanford, H-09-342, U.S. District Court, Southern District of Texas (Houston). The civil case is SEC v. Stanford International Bank, 3:09-cv-00298-N, U.S. District Court, Northern District of Texas (Dallas). * ANTIGUA & BARBUDA: Names New Financial Regulatory Head -------------------------------------------------------- Antigua and Barbuda has appointed John Benjamin as the new administrator and chief executive officer of the country's Financial Services Regulatory Commission, Pascal Fletcher at Reuters reports. The report relates that Mr. Benjamin will replace Leroy King, who faces U.S. charges aiding financier Robert Allen Stanford in a multi-billion Ponzi scheme. According to the report, Mr. Benajmin previously worked with Barclays Bank Plc and the Antigua Commercial Bank and more recently had been managing director at TCI Bank Ltd of the Turks and Caicos Islands. The report says Mr. Benjamin's appointment will run for a period of six months. As reported in the Troubled Company Reporter-Latin America on September 1, 2009, Caribbean360.com said former Stanford Financial Group Co. Chief Financial Officer, James M. Davis, who pleaded guilty of helping Mr. Stanford orchestrated a fraud, testified that a brotherhood ceremony took place involving Mr. King, Mr. Stanford, and an unnamed FSRC employee to keep the fraud that was ongoing at the Stanford International Bank Limited under wraps. "Sometime in 2003, Mr. Stanford performed a 'blood oath' brotherhood ceremony with [Mr.] King and another employee of the FSRC. This brotherhood oath was undertaken in order to extract an agreement from both [Mr.] King and the other FSRC employee that they, in exchange for regular cash bribe payments, would ensure that the Antiguan bank regulators would not 'kill the business' of the bank," a court document signed by Mr. Davis stated, the report related. According to the report, citing court papers, Mr. King received more than US$200,000 in bribes, including SuperBowl tickets and flights on the investor's private jets and that the bribe money was taken by Mr. Davis, on Mr. Stanford's instructions, from a secret Swiss bank account. The report noted that the document stated that Mr. King also forwarded confidential correspondence he received from the SEC to Mr. Stanford and another bank executive. Mr. Stanford, the report added, would then help Mr. King draft misleading responses from his regulatory agency. Caribbean360.com, citing the plea document, said that Mr. King also helped mislead regulators of the Eastern Caribbean Central Bank when they began raising questions about SIBL. About Stanford International Domiciled in Antigua, Stanford International Bank Limited -- http://www.stanfordinternationalbank.com/-- is a member of Stanford Private Wealth Management, a global financial services network with US$51 billion in deposits and assets under management or advisement. Stanford Private Wealth Management serves more than 70,000 clients in 140 countries. On February 16, 2009, the United States District Court for the Northern District of Texas, Dallas Division, signed an order appointing Ralph Janvey as receiver for all the assets and records of Stanford International Bank, Ltd., Stanford Group Company, Stanford Capital Management, LLC, Robert Allen Stanford, James M. Davis and Laura Pendergest-Holt and of all entities they own or control. The February 16 order, as amended March 12, 2009, directs the Receiver to, among other things, take control and possession of and to operate the Receivership Estate, and to perform all acts necessary to conserve, hold, manage and preserve the value of the Receivership Estate. The U.S. Securities and Exchange Commission, on Feb. 17, charged before the U.S. District Court in Dallas, Texas, Mr. Stanford and three of his companies for orchestrating a fraudulent, multi- billion dollar investment scheme centering on an US$8 billion Certificate of Deposit program. A criminal case was pursued against him in June before the U.S. District Court in Houston, Texas. Mr. Stanford pleaded not guilty to 21 charges of multi-billion dollar fraud, money-laundering and obstruction of justice. Assistant Attorney General Lanny Breuer, as cited by Agence France-Presse News, said in a 57-page indictment that Mr. Stanford could face up to 250 years in prison if convicted on all charges. Mr. Stanford surrendered to U.S. authorities after a warrant was issued for his arrest on the criminal charges. The criminal case is U.S. v. Stanford, H-09-342, U.S. District Court, Southern District of Texas (Houston). The civil case is SEC v. Stanford International Bank, 3:09-cv-00298-N, U.S. District Court, Northern District of Texas (Dallas). ================= A R G E N T I N A ================= ALUAR ALUMINIO: Moody's Assigns 'B2' Rating on New Senior Notes --------------------------------------------------------------- Moody's Latin America has assigned a B2 global local currency and an Aa3.ar Argentina national scale rating to US$50 million in new senior unsecured local notes due 2014 to be issued by Aluar Aluminio Argentino S.A.I.C. At the same time, Moody's affirmed Aluar's B2 global local currency corporate family rating and its Aa3.ar Argentina National Scale Rating. The outlook for all ratings is stable. The net proceeds from the notes offering will be used to finance Aluar's ongoing capital expansion plan. The new notes will be unsecured and are pari passu with all of the company's existing and future senior unsecured indebtedness. Aluar's B2 and Aa3.ar ratings are supported by its leading market position as the only aluminum smelter in Argentina and its long- term volume-based supply contracts, which have helped to sustain Aluar's operating margins. Aluar's ratings also consider its favorable business model -- Aluar serves 100% of Argentina domestic demand and generates significant foreign currency earnings through its worldwide exports. Some 75% of Aluar's total production is exported. The ratings also consider Aluar's improved liquidity profile, following its payment of US$170 million in debt with the proceeds from a US$241 million capital injection from Aluar's main shareholder in July 2009. Moody's notes that, after debt amortization, the company expects that US$44 million in proceeds will remain to provide additional financial flexibility to Aluar in case of a much weaker than expected industry environment. These key strengths are offset by the nature of Aluar's business, which is exposed to cyclical aluminum prices, and its limited geographical diversification in terms of operating assets. The company operates a single primary aluminum production facility and is dependent on a single alumina supplier. Finally, the ratings are constrained by the increasing debt levels that Aluar will require to complete its investment plan. The ratings incorporate Moody's expectations that weak aluminum industry conditions, end-user demand and pricing will likely cause Aluar's margins to remain below their long term average in the medium term notwithstanding actions taken to reduce costs and expected aluminum industry production curtailments. Aluar's B2 global local currency rating reflects its global default and loss expectation, while the Aa3.ar national scale rating reflects the standing of Aluar's credit quality relative to its domestic peers. Moody's National Scale Ratings are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs in Argentina are designated by the ".ar" suffix. Issuers or issues rated Aa.ar demonstrate very strong creditworthiness relative to other domestic issuers within the NSR. NSRs differ from global scale ratings in that they are not globally comparable to the full universe of Moody's rated entities, but only with other rated entities within the same country. The stable outlook is based on Moody's expectation that Aluar will continue to successfully execute its business strategy, in spite of continued weak economic fundamentals in Argentina and globally in 2009-2010. The weaker macroeconomic environment is likely to pressure Aluar's revenues and cash flows, but Moody's expect that the company will benefit from improved working capital management and the ability to roll over its pre- export financing lines due to its long-standing banking relationships. An upgrade in the ratings or outlook could possibly be triggered by sustainable debt/EBITDA of less than 2.5x (2.9x as of LTM ending March 31, 2009), EBIT/Interest greater than 6.0x (3.4x as of LTM ending March 31, 2009) and free cash flow/debt of at least 10% (-1.9% as of LTM ending March 31, 09). Moody's believes the most significant risk to Aluar's ratings continues to be a prolonged slowdown in its end-markets, with sustained aluminum price weakness. Quantitatively, a downgrade in the ratings or outlook could be caused by EBIT/interest of below 2.5x, debt/EBITDA above 5.0x or operating cash flow less dividends to debt of less than 10% (22.5% as of LTM ending March 31, 2009) for an extended period of time. Headquartered in Buenos Aires, Argentina, Aluar is the only primary aluminum producer and the main semi-manufactured aluminum maker in Argentina. With total revenues of US$1 billion as of the last twelve months ending March 31, 2009, 25% of Aluar's production is sold in the Argentine domestic market and the remaining 75% is exported worldwide. BANCO COMAFI: Moody's Cuts Global Local Cur. Deposit Rating to Ba3 ------------------------------------------------------------------ Moody's Investors Service has lowered the global local currency deposit ratings of sixteen Argentinean banks and the local currency debt ratings of four banks. The outlooks on the ratings were changed to stable, with the exception of those of Banco Hipotecario S.A. which remain on negative outlook. These rating actions conclude the review for possible downgrade initiated on May 29, 2009. The banks affected are: Banco de la Ciudad de Buenos Aires, Banco Comafi S.A, Banco Credicoop Cooperativo Limitado, Banco Finansur S.A., Banco de Galicia y Buenos Aires S.A, Nuevo Banco Industrial de Azul S.A., Banco Macro S.A., Nuevo Banco Bisel S.A., Banco del Tucuman S.A., Banco Patagonia S.A., Banco de Santiago del Estero S.A., Nuevo Banco de La Rioja S.A., Banco Piano S.A., Banco Supervielle S.A. Banco Regional de Cuyo S.A. and Banco Hipotecario S.A. The rating agency also noted that the global foreign currency deposit and debt ratings, as well as the local and foreign currency national scale deposit and debt ratings of these banks were not affected by these actions, and have therefore been affirmed. Moody's said that the rating actions derive from its current global reassessment of the systemic support available to banking systems in the event of a prolonged financial crisis The actions reflect Moody's reevaluation of the amount of "uplift" from government support that may be incorporated in the deposit ratings of Argentinean banks. Moody's indicated that the ratings downgrades were therefore not related to the banks' operating performances and cited the banking system's relative resilience during the current crisis despite both externally and internally generated financial shocks. This view is based on the banks' continued profitability, adequate liquidity and capital, and manageable delinquency levels. Accordingly, Moody's affirmed the stand-alone bank financial strength ratings of the aforementioned institutions. Refined Systemic Support Indicator For Argentina Reflects Manageable Risk Of Systemic Banking Losses Moody's has refined its assessment of systemic support for Argentinean banks based on a new support indicator that reflects the capacity and willingness of the government to support the banking system as a whole in the event of a systemic crisis. While Moody's continues to believe that most governments are likely to support their banking systems to avoid a meltdown of the local payment system in such an event, the agency views the capacity of a country and its central bank to support the nation's banks to be more closely aligned with the government's own credit strength. The rating agency noted that the ratings of a large number of banks worldwide are being reevaluated, particularly those that benefit from several notches of rating uplift due to systemic support, and are in countries where the gap between the local currency government bond rating and the local currency deposit ceiling is wide. The revised approach to systemic support is outlined in the special report entitled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries", published in May 2009. Moody's said that the new systemic support indicator for Argentina has been established at B1 replacing the Ba1 local currency deposit ceiling as the systemic support input for bank ratings. The B1 support indicator nevertheless reflects two notches of uplift from its anchor rating, which is the Argentine government's B3 local currency bond rating. The two-notch uplift reflects Moody's view that the modest size of the Argentine banking system relative to the government's resources and to GDP makes the risk of crystallization of banking losses on the government's balance sheet relatively moderate. Moreover, the Argentine authorities are now more capable of assisting financial institutions in the case of systemic stress than they were in the early 2000s, given the small share (13.5%) of foreign currency liabilities relative to the country's international reserves. Contrary to the period during which the Argentine peso was pegged to the US dollar, the Central Bank has full monetary authority and as a consequence is now in a position to use various financial and non-financial tools to manage potential stress in the country's banking system, said Moody's. These ratings were affected: [1] Banco de la Ciudad de Buenos Aires: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [2] Banco Comafi S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; global local currency debt rating lowered to Ba3 from Ba2. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa2.ar were affirmed. [3] Banco Credicoop Cooperativo Limitado: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [4] Banco Finansur S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B2 from B1; global local currency debt rating lowered to B2 from B1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt rating of Aa3.ar was affirmed. [5] Banco de Galicia y Buenos Aires S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [6] Nuevo Banco Industrial de Azul S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B1 from Ba3; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [7] Banco Macro S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; global local currency debt rating lowered to Ba2 from Ba1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were affirmed. [8] Nuevo Banco Bisel S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [9] Banco del Tucuman S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [10] Banco Patagonia S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [11] Banco de Santiago del Estero S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [12] Nuevo Banco de La Rioja S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [13] Banco Piano S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [14] Banco Supervielle S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [15] Banco Regional de Cuyo S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [16] Banco Hipotecario S.A.: The BFSR of D was affirmed with negative outlook. The global local currency deposit rating downgraded to Ba2 from Ba1, with negative outlook; and the global local currency debt rating lowered to Ba2 from Ba1 with negative outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were placed on negative outlook as well. BANCO CREDICOOP: Moody's Cuts Deposit Rating to Ba2 From Ba1 ------------------------------------------------------------ Moody's Investors Service has lowered the global local currency deposit ratings of sixteen Argentinean banks and the local currency debt ratings of four banks. The outlooks on the ratings were changed to stable, with the exception of those of Banco Hipotecario S.A. which remain on negative outlook. These rating actions conclude the review for possible downgrade initiated on May 29, 2009. The banks affected are: Banco de la Ciudad de Buenos Aires, Banco Comafi S.A, Banco Credicoop Cooperativo Limitado, Banco Finansur S.A., Banco de Galicia y Buenos Aires S.A, Nuevo Banco Industrial de Azul S.A., Banco Macro S.A., Nuevo Banco Bisel S.A., Banco del Tucuman S.A., Banco Patagonia S.A., Banco de Santiago del Estero S.A., Nuevo Banco de La Rioja S.A., Banco Piano S.A., Banco Supervielle S.A. Banco Regional de Cuyo S.A. and Banco Hipotecario S.A. The rating agency also noted that the global foreign currency deposit and debt ratings, as well as the local and foreign currency national scale deposit and debt ratings of these banks were not affected by these actions, and have therefore been affirmed. Moody's said that the rating actions derive from its current global reassessment of the systemic support available to banking systems in the event of a prolonged financial crisis The actions reflect Moody's reevaluation of the amount of "uplift" from government support that may be incorporated in the deposit ratings of Argentinean banks. Moody's indicated that the ratings downgrades were therefore not related to the banks' operating performances and cited the banking system's relative resilience during the current crisis despite both externally and internally generated financial shocks. This view is based on the banks' continued profitability, adequate liquidity and capital, and manageable delinquency levels. Accordingly, Moody's affirmed the stand-alone bank financial strength ratings of the aforementioned institutions. Refined Systemic Support Indicator For Argentina Reflects Manageable Risk Of Systemic Banking Losses Moody's has refined its assessment of systemic support for Argentinean banks based on a new support indicator that reflects the capacity and willingness of the government to support the banking system as a whole in the event of a systemic crisis. While Moody's continues to believe that most governments are likely to support their banking systems to avoid a meltdown of the local payment system in such an event, the agency views the capacity of a country and its central bank to support the nation's banks to be more closely aligned with the government's own credit strength. The rating agency noted that the ratings of a large number of banks worldwide are being reevaluated, particularly those that benefit from several notches of rating uplift due to systemic support, and are in countries where the gap between the local currency government bond rating and the local currency deposit ceiling is wide. The revised approach to systemic support is outlined in the special report entitled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries", published in May 2009. Moody's said that the new systemic support indicator for Argentina has been established at B1 replacing the Ba1 local currency deposit ceiling as the systemic support input for bank ratings. The B1 support indicator nevertheless reflects two notches of uplift from its anchor rating, which is the Argentine government's B3 local currency bond rating. The two-notch uplift reflects Moody's view that the modest size of the Argentine banking system relative to the government's resources and to GDP makes the risk of crystallization of banking losses on the government's balance sheet relatively moderate. Moreover, the Argentine authorities are now more capable of assisting financial institutions in the case of systemic stress than they were in the early 2000s, given the small share (13.5%) of foreign currency liabilities relative to the country's international reserves. Contrary to the period during which the Argentine peso was pegged to the US dollar, the Central Bank has full monetary authority and as a consequence is now in a position to use various financial and non-financial tools to manage potential stress in the country's banking system, said Moody's. These ratings were affected: [1] Banco de la Ciudad de Buenos Aires: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [2] Banco Comafi S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; global local currency debt rating lowered to Ba3 from Ba2. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa2.ar were affirmed. [3] Banco Credicoop Cooperativo Limitado: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [4] Banco Finansur S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B2 from B1; global local currency debt rating lowered to B2 from B1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt rating of Aa3.ar was affirmed. [5] Banco de Galicia y Buenos Aires S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [6] Nuevo Banco Industrial de Azul S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B1 from Ba3; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [7] Banco Macro S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; global local currency debt rating lowered to Ba2 from Ba1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were affirmed. [8] Nuevo Banco Bisel S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [9] Banco del Tucuman S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [10] Banco Patagonia S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [11] Banco de Santiago del Estero S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [12] Nuevo Banco de La Rioja S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [13] Banco Piano S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [14] Banco Supervielle S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [15] Banco Regional de Cuyo S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [16] Banco Hipotecario S.A.: The BFSR of D was affirmed with negative outlook. The global local currency deposit rating downgraded to Ba2 from Ba1, with negative outlook; and the global local currency debt rating lowered to Ba2 from Ba1 with negative outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were placed on negative outlook as well. BANCO DE GALICIA: Moody's Cuts Deposit Rating Downgraded to Ba3 --------------------------------------------------------------- Moody's Investors Service has lowered the global local currency deposit ratings of sixteen Argentinean banks and the local currency debt ratings of four banks. The outlooks on the ratings were changed to stable, with the exception of those of Banco Hipotecario S.A. which remain on negative outlook. These rating actions conclude the review for possible downgrade initiated on May 29, 2009. The banks affected are: Banco de la Ciudad de Buenos Aires, Banco Comafi S.A, Banco Credicoop Cooperativo Limitado, Banco Finansur S.A., Banco de Galicia y Buenos Aires S.A, Nuevo Banco Industrial de Azul S.A., Banco Macro S.A., Nuevo Banco Bisel S.A., Banco del Tucuman S.A., Banco Patagonia S.A., Banco de Santiago del Estero S.A., Nuevo Banco de La Rioja S.A., Banco Piano S.A., Banco Supervielle S.A. Banco Regional de Cuyo S.A. and Banco Hipotecario S.A. The rating agency also noted that the global foreign currency deposit and debt ratings, as well as the local and foreign currency national scale deposit and debt ratings of these banks were not affected by these actions, and have therefore been affirmed. Moody's said that the rating actions derive from its current global reassessment of the systemic support available to banking systems in the event of a prolonged financial crisis The actions reflect Moody's reevaluation of the amount of "uplift" from government support that may be incorporated in the deposit ratings of Argentinean banks. Moody's indicated that the ratings downgrades were therefore not related to the banks' operating performances and cited the banking system's relative resilience during the current crisis despite both externally and internally generated financial shocks. This view is based on the banks' continued profitability, adequate liquidity and capital, and manageable delinquency levels. Accordingly, Moody's affirmed the stand-alone bank financial strength ratings of the aforementioned institutions. Refined Systemic Support Indicator For Argentina Reflects Manageable Risk Of Systemic Banking Losses Moody's has refined its assessment of systemic support for Argentinean banks based on a new support indicator that reflects the capacity and willingness of the government to support the banking system as a whole in the event of a systemic crisis. While Moody's continues to believe that most governments are likely to support their banking systems to avoid a meltdown of the local payment system in such an event, the agency views the capacity of a country and its central bank to support the nation's banks to be more closely aligned with the government's own credit strength. The rating agency noted that the ratings of a large number of banks worldwide are being reevaluated, particularly those that benefit from several notches of rating uplift due to systemic support, and are in countries where the gap between the local currency government bond rating and the local currency deposit ceiling is wide. The revised approach to systemic support is outlined in the special report entitled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries", published in May 2009. Moody's said that the new systemic support indicator for Argentina has been established at B1 replacing the Ba1 local currency deposit ceiling as the systemic support input for bank ratings. The B1 support indicator nevertheless reflects two notches of uplift from its anchor rating, which is the Argentine government's B3 local currency bond rating. The two-notch uplift reflects Moody's view that the modest size of the Argentine banking system relative to the government's resources and to GDP makes the risk of crystallization of banking losses on the government's balance sheet relatively moderate. Moreover, the Argentine authorities are now more capable of assisting financial institutions in the case of systemic stress than they were in the early 2000s, given the small share (13.5%) of foreign currency liabilities relative to the country's international reserves. Contrary to the period during which the Argentine peso was pegged to the US dollar, the Central Bank has full monetary authority and as a consequence is now in a position to use various financial and non-financial tools to manage potential stress in the country's banking system, said Moody's. These ratings were affected: [1] Banco de la Ciudad de Buenos Aires: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [2] Banco Comafi S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; global local currency debt rating lowered to Ba3 from Ba2. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa2.ar were affirmed. [3] Banco Credicoop Cooperativo Limitado: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [4] Banco Finansur S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B2 from B1; global local currency debt rating lowered to B2 from B1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt rating of Aa3.ar was affirmed. [5] Banco de Galicia y Buenos Aires S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [6] Nuevo Banco Industrial de Azul S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B1 from Ba3; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [7] Banco Macro S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; global local currency debt rating lowered to Ba2 from Ba1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were affirmed. [8] Nuevo Banco Bisel S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [9] Banco del Tucuman S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [10] Banco Patagonia S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [11] Banco de Santiago del Estero S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [12] Nuevo Banco de La Rioja S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [13] Banco Piano S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [14] Banco Supervielle S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [15] Banco Regional de Cuyo S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [16] Banco Hipotecario S.A.: The BFSR of D was affirmed with negative outlook. The global local currency deposit rating downgraded to Ba2 from Ba1, with negative outlook; and the global local currency debt rating lowered to Ba2 from Ba1 with negative outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were placed on negative outlook as well. BANCO DE LA CIUDAD: Moody's Cuts Cur. Deposit Rating to Ba2 ----------------------------------------------------------- Moody's Investors Service has lowered the global local currency deposit ratings of sixteen Argentinean banks and the local currency debt ratings of four banks. The outlooks on the ratings were changed to stable, with the exception of those of Banco Hipotecario S.A. which remain on negative outlook. These rating actions conclude the review for possible downgrade initiated on May 29, 2009. The banks affected are: Banco de la Ciudad de Buenos Aires, Banco Comafi S.A, Banco Credicoop Cooperativo Limitado, Banco Finansur S.A., Banco de Galicia y Buenos Aires S.A, Nuevo Banco Industrial de Azul S.A., Banco Macro S.A., Nuevo Banco Bisel S.A., Banco del Tucuman S.A., Banco Patagonia S.A., Banco de Santiago del Estero S.A., Nuevo Banco de La Rioja S.A., Banco Piano S.A., Banco Supervielle S.A. Banco Regional de Cuyo S.A. and Banco Hipotecario S.A. The rating agency also noted that the global foreign currency deposit and debt ratings, as well as the local and foreign currency national scale deposit and debt ratings of these banks were not affected by these actions, and have therefore been affirmed. Moody's said that the rating actions derive from its current global reassessment of the systemic support available to banking systems in the event of a prolonged financial crisis The actions reflect Moody's reevaluation of the amount of "uplift" from government support that may be incorporated in the deposit ratings of Argentinean banks. Moody's indicated that the ratings downgrades were therefore not related to the banks' operating performances and cited the banking system's relative resilience during the current crisis despite both externally and internally generated financial shocks. This view is based on the banks' continued profitability, adequate liquidity and capital, and manageable delinquency levels. Accordingly, Moody's affirmed the stand-alone bank financial strength ratings of the aforementioned institutions. Refined Systemic Support Indicator For Argentina Reflects Manageable Risk Of Systemic Banking Losses Moody's has refined its assessment of systemic support for Argentinean banks based on a new support indicator that reflects the capacity and willingness of the government to support the banking system as a whole in the event of a systemic crisis. While Moody's continues to believe that most governments are likely to support their banking systems to avoid a meltdown of the local payment system in such an event, the agency views the capacity of a country and its central bank to support the nation's banks to be more closely aligned with the government's own credit strength. The rating agency noted that the ratings of a large number of banks worldwide are being reevaluated, particularly those that benefit from several notches of rating uplift due to systemic support, and are in countries where the gap between the local currency government bond rating and the local currency deposit ceiling is wide. The revised approach to systemic support is outlined in the special report entitled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries", published in May 2009. Moody's said that the new systemic support indicator for Argentina has been established at B1 replacing the Ba1 local currency deposit ceiling as the systemic support input for bank ratings. The B1 support indicator nevertheless reflects two notches of uplift from its anchor rating, which is the Argentine government's B3 local currency bond rating. The two-notch uplift reflects Moody's view that the modest size of the Argentine banking system relative to the government's resources and to GDP makes the risk of crystallization of banking losses on the government's balance sheet relatively moderate. Moreover, the Argentine authorities are now more capable of assisting financial institutions in the case of systemic stress than they were in the early 2000s, given the small share (13.5%) of foreign currency liabilities relative to the country's international reserves. Contrary to the period during which the Argentine peso was pegged to the US dollar, the Central Bank has full monetary authority and as a consequence is now in a position to use various financial and non-financial tools to manage potential stress in the country's banking system, said Moody's. These ratings were affected: [1] Banco de la Ciudad de Buenos Aires: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [2] Banco Comafi S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; global local currency debt rating lowered to Ba3 from Ba2. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa2.ar were affirmed. [3] Banco Credicoop Cooperativo Limitado: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [4] Banco Finansur S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B2 from B1; global local currency debt rating lowered to B2 from B1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt rating of Aa3.ar was affirmed. [5] Banco de Galicia y Buenos Aires S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [6] Nuevo Banco Industrial de Azul S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B1 from Ba3; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [7] Banco Macro S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; global local currency debt rating lowered to Ba2 from Ba1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were affirmed. [8] Nuevo Banco Bisel S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [9] Banco del Tucuman S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [10] Banco Patagonia S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [11] Banco de Santiago del Estero S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [12] Nuevo Banco de La Rioja S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [13] Banco Piano S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [14] Banco Supervielle S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [15] Banco Regional de Cuyo S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [16] Banco Hipotecario S.A.: The BFSR of D was affirmed with negative outlook. The global local currency deposit rating downgraded to Ba2 from Ba1, with negative outlook; and the global local currency debt rating lowered to Ba2 from Ba1 with negative outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were placed on negative outlook as well. BANCO DE SANTIAGO: Moody's Cuts Deposit Rating to Ba3 From Ba2 -------------------------------------------------------------- Moody's Investors Service has lowered the global local currency deposit ratings of sixteen Argentinean banks and the local currency debt ratings of four banks. The outlooks on the ratings were changed to stable, with the exception of those of Banco Hipotecario S.A. which remain on negative outlook. These rating actions conclude the review for possible downgrade initiated on May 29, 2009. The banks affected are: Banco de la Ciudad de Buenos Aires, Banco Comafi S.A, Banco Credicoop Cooperativo Limitado, Banco Finansur S.A., Banco de Galicia y Buenos Aires S.A, Nuevo Banco Industrial de Azul S.A., Banco Macro S.A., Nuevo Banco Bisel S.A., Banco del Tucuman S.A., Banco Patagonia S.A., Banco de Santiago del Estero S.A., Nuevo Banco de La Rioja S.A., Banco Piano S.A., Banco Supervielle S.A. Banco Regional de Cuyo S.A. and Banco Hipotecario S.A. The rating agency also noted that the global foreign currency deposit and debt ratings, as well as the local and foreign currency national scale deposit and debt ratings of these banks were not affected by these actions, and have therefore been affirmed. Moody's said that the rating actions derive from its current global reassessment of the systemic support available to banking systems in the event of a prolonged financial crisis The actions reflect Moody's reevaluation of the amount of "uplift" from government support that may be incorporated in the deposit ratings of Argentinean banks. Moody's indicated that the ratings downgrades were therefore not related to the banks' operating performances and cited the banking system's relative resilience during the current crisis despite both externally and internally generated financial shocks. This view is based on the banks' continued profitability, adequate liquidity and capital, and manageable delinquency levels. Accordingly, Moody's affirmed the stand-alone bank financial strength ratings of the aforementioned institutions. Refined Systemic Support Indicator For Argentina Reflects Manageable Risk Of Systemic Banking Losses Moody's has refined its assessment of systemic support for Argentinean banks based on a new support indicator that reflects the capacity and willingness of the government to support the banking system as a whole in the event of a systemic crisis. While Moody's continues to believe that most governments are likely to support their banking systems to avoid a meltdown of the local payment system in such an event, the agency views the capacity of a country and its central bank to support the nation's banks to be more closely aligned with the government's own credit strength. The rating agency noted that the ratings of a large number of banks worldwide are being reevaluated, particularly those that benefit from several notches of rating uplift due to systemic support, and are in countries where the gap between the local currency government bond rating and the local currency deposit ceiling is wide. The revised approach to systemic support is outlined in the special report entitled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries", published in May 2009. Moody's said that the new systemic support indicator for Argentina has been established at B1 replacing the Ba1 local currency deposit ceiling as the systemic support input for bank ratings. The B1 support indicator nevertheless reflects two notches of uplift from its anchor rating, which is the Argentine government's B3 local currency bond rating. The two-notch uplift reflects Moody's view that the modest size of the Argentine banking system relative to the government's resources and to GDP makes the risk of crystallization of banking losses on the government's balance sheet relatively moderate. Moreover, the Argentine authorities are now more capable of assisting financial institutions in the case of systemic stress than they were in the early 2000s, given the small share (13.5%) of foreign currency liabilities relative to the country's international reserves. Contrary to the period during which the Argentine peso was pegged to the US dollar, the Central Bank has full monetary authority and as a consequence is now in a position to use various financial and non-financial tools to manage potential stress in the country's banking system, said Moody's. These ratings were affected: [1] Banco de la Ciudad de Buenos Aires: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [2] Banco Comafi S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; global local currency debt rating lowered to Ba3 from Ba2. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa2.ar were affirmed. [3] Banco Credicoop Cooperativo Limitado: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [4] Banco Finansur S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B2 from B1; global local currency debt rating lowered to B2 from B1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt rating of Aa3.ar was affirmed. [5] Banco de Galicia y Buenos Aires S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [6] Nuevo Banco Industrial de Azul S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B1 from Ba3; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [7] Banco Macro S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; global local currency debt rating lowered to Ba2 from Ba1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were affirmed. [8] Nuevo Banco Bisel S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [9] Banco del Tucuman S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [10] Banco Patagonia S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [11] Banco de Santiago del Estero S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [12] Nuevo Banco de La Rioja S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [13] Banco Piano S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [14] Banco Supervielle S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [15] Banco Regional de Cuyo S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [16] Banco Hipotecario S.A.: The BFSR of D was affirmed with negative outlook. The global local currency deposit rating downgraded to Ba2 from Ba1, with negative outlook; and the global local currency debt rating lowered to Ba2 from Ba1 with negative outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were placed on negative outlook as well. BANCO DEL TUCUMAN: Moody's Cuts Deposit Rating to Ba2 From Ba1 -------------------------------------------------------------- Moody's Investors Service has lowered the global local currency deposit ratings of sixteen Argentinean banks and the local currency debt ratings of four banks. The outlooks on the ratings were changed to stable, with the exception of those of Banco Hipotecario S.A. which remain on negative outlook. These rating actions conclude the review for possible downgrade initiated on May 29, 2009. The banks affected are: Banco de la Ciudad de Buenos Aires, Banco Comafi S.A, Banco Credicoop Cooperativo Limitado, Banco Finansur S.A., Banco de Galicia y Buenos Aires S.A, Nuevo Banco Industrial de Azul S.A., Banco Macro S.A., Nuevo Banco Bisel S.A., Banco del Tucuman S.A., Banco Patagonia S.A., Banco de Santiago del Estero S.A., Nuevo Banco de La Rioja S.A., Banco Piano S.A., Banco Supervielle S.A. Banco Regional de Cuyo S.A. and Banco Hipotecario S.A. The rating agency also noted that the global foreign currency deposit and debt ratings, as well as the local and foreign currency national scale deposit and debt ratings of these banks were not affected by these actions, and have therefore been affirmed. Moody's said that the rating actions derive from its current global reassessment of the systemic support available to banking systems in the event of a prolonged financial crisis The actions reflect Moody's reevaluation of the amount of "uplift" from government support that may be incorporated in the deposit ratings of Argentinean banks. Moody's indicated that the ratings downgrades were therefore not related to the banks' operating performances and cited the banking system's relative resilience during the current crisis despite both externally and internally generated financial shocks. This view is based on the banks' continued profitability, adequate liquidity and capital, and manageable delinquency levels. Accordingly, Moody's affirmed the stand-alone bank financial strength ratings of the aforementioned institutions. Refined Systemic Support Indicator For Argentina Reflects Manageable Risk Of Systemic Banking Losses Moody's has refined its assessment of systemic support for Argentinean banks based on a new support indicator that reflects the capacity and willingness of the government to support the banking system as a whole in the event of a systemic crisis. While Moody's continues to believe that most governments are likely to support their banking systems to avoid a meltdown of the local payment system in such an event, the agency views the capacity of a country and its central bank to support the nation's banks to be more closely aligned with the government's own credit strength. The rating agency noted that the ratings of a large number of banks worldwide are being reevaluated, particularly those that benefit from several notches of rating uplift due to systemic support, and are in countries where the gap between the local currency government bond rating and the local currency deposit ceiling is wide. The revised approach to systemic support is outlined in the special report entitled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries", published in May 2009. Moody's said that the new systemic support indicator for Argentina has been established at B1 replacing the Ba1 local currency deposit ceiling as the systemic support input for bank ratings. The B1 support indicator nevertheless reflects two notches of uplift from its anchor rating, which is the Argentine government's B3 local currency bond rating. The two-notch uplift reflects Moody's view that the modest size of the Argentine banking system relative to the government's resources and to GDP makes the risk of crystallization of banking losses on the government's balance sheet relatively moderate. Moreover, the Argentine authorities are now more capable of assisting financial institutions in the case of systemic stress than they were in the early 2000s, given the small share (13.5%) of foreign currency liabilities relative to the country's international reserves. Contrary to the period during which the Argentine peso was pegged to the US dollar, the Central Bank has full monetary authority and as a consequence is now in a position to use various financial and non-financial tools to manage potential stress in the country's banking system, said Moody's. These ratings were affected: [1] Banco de la Ciudad de Buenos Aires: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [2] Banco Comafi S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; global local currency debt rating lowered to Ba3 from Ba2. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa2.ar were affirmed. [3] Banco Credicoop Cooperativo Limitado: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [4] Banco Finansur S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B2 from B1; global local currency debt rating lowered to B2 from B1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt rating of Aa3.ar was affirmed. [5] Banco de Galicia y Buenos Aires S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [6] Nuevo Banco Industrial de Azul S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B1 from Ba3; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [7] Banco Macro S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; global local currency debt rating lowered to Ba2 from Ba1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were affirmed. [8] Nuevo Banco Bisel S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [9] Banco del Tucuman S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [10] Banco Patagonia S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [11] Banco de Santiago del Estero S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [12] Nuevo Banco de La Rioja S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [13] Banco Piano S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [14] Banco Supervielle S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [15] Banco Regional de Cuyo S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [16] Banco Hipotecario S.A.: The BFSR of D was affirmed with negative outlook. The global local currency deposit rating downgraded to Ba2 from Ba1, with negative outlook; and the global local currency debt rating lowered to Ba2 from Ba1 with negative outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were placed on negative outlook as well. BANCO FINANSUR: Moody's Cuts Deposit Rating to B2 From B1 --------------------------------------------------------- Moody's Investors Service has lowered the global local currency deposit ratings of sixteen Argentinean banks and the local currency debt ratings of four banks. The outlooks on the ratings were changed to stable, with the exception of those of Banco Hipotecario S.A. which remain on negative outlook. These rating actions conclude the review for possible downgrade initiated on May 29, 2009. The banks affected are: Banco de la Ciudad de Buenos Aires, Banco Comafi S.A, Banco Credicoop Cooperativo Limitado, Banco Finansur S.A., Banco de Galicia y Buenos Aires S.A, Nuevo Banco Industrial de Azul S.A., Banco Macro S.A., Nuevo Banco Bisel S.A., Banco del Tucuman S.A., Banco Patagonia S.A., Banco de Santiago del Estero S.A., Nuevo Banco de La Rioja S.A., Banco Piano S.A., Banco Supervielle S.A. Banco Regional de Cuyo S.A. and Banco Hipotecario S.A. The rating agency also noted that the global foreign currency deposit and debt ratings, as well as the local and foreign currency national scale deposit and debt ratings of these banks were not affected by these actions, and have therefore been affirmed. Moody's said that the rating actions derive from its current global reassessment of the systemic support available to banking systems in the event of a prolonged financial crisis The actions reflect Moody's reevaluation of the amount of "uplift" from government support that may be incorporated in the deposit ratings of Argentinean banks. Moody's indicated that the ratings downgrades were therefore not related to the banks' operating performances and cited the banking system's relative resilience during the current crisis despite both externally and internally generated financial shocks. This view is based on the banks' continued profitability, adequate liquidity and capital, and manageable delinquency levels. Accordingly, Moody's affirmed the stand-alone bank financial strength ratings of the aforementioned institutions. Refined Systemic Support Indicator For Argentina Reflects Manageable Risk Of Systemic Banking Losses Moody's has refined its assessment of systemic support for Argentinean banks based on a new support indicator that reflects the capacity and willingness of the government to support the banking system as a whole in the event of a systemic crisis. While Moody's continues to believe that most governments are likely to support their banking systems to avoid a meltdown of the local payment system in such an event, the agency views the capacity of a country and its central bank to support the nation's banks to be more closely aligned with the government's own credit strength. The rating agency noted that the ratings of a large number of banks worldwide are being reevaluated, particularly those that benefit from several notches of rating uplift due to systemic support, and are in countries where the gap between the local currency government bond rating and the local currency deposit ceiling is wide. The revised approach to systemic support is outlined in the special report entitled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries", published in May 2009. Moody's said that the new systemic support indicator for Argentina has been established at B1 replacing the Ba1 local currency deposit ceiling as the systemic support input for bank ratings. The B1 support indicator nevertheless reflects two notches of uplift from its anchor rating, which is the Argentine government's B3 local currency bond rating. The two-notch uplift reflects Moody's view that the modest size of the Argentine banking system relative to the government's resources and to GDP makes the risk of crystallization of banking losses on the government's balance sheet relatively moderate. Moreover, the Argentine authorities are now more capable of assisting financial institutions in the case of systemic stress than they were in the early 2000s, given the small share (13.5%) of foreign currency liabilities relative to the country's international reserves. Contrary to the period during which the Argentine peso was pegged to the US dollar, the Central Bank has full monetary authority and as a consequence is now in a position to use various financial and non-financial tools to manage potential stress in the country's banking system, said Moody's. These ratings were affected: [1] Banco de la Ciudad de Buenos Aires: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [2] Banco Comafi S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; global local currency debt rating lowered to Ba3 from Ba2. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa2.ar were affirmed. [3] Banco Credicoop Cooperativo Limitado: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [4] Banco Finansur S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B2 from B1; global local currency debt rating lowered to B2 from B1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt rating of Aa3.ar was affirmed. [5] Banco de Galicia y Buenos Aires S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [6] Nuevo Banco Industrial de Azul S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B1 from Ba3; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [7] Banco Macro S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; global local currency debt rating lowered to Ba2 from Ba1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were affirmed. [8] Nuevo Banco Bisel S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [9] Banco del Tucuman S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [10] Banco Patagonia S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [11] Banco de Santiago del Estero S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [12] Nuevo Banco de La Rioja S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [13] Banco Piano S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [14] Banco Supervielle S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [15] Banco Regional de Cuyo S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [16] Banco Hipotecario S.A.: The BFSR of D was affirmed with negative outlook. The global local currency deposit rating downgraded to Ba2 from Ba1, with negative outlook; and the global local currency debt rating lowered to Ba2 from Ba1 with negative outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were placed on negative outlook as well. BANCO HIPOTECARIO: Moody's Cuts Deposit Rating to Ba2 From Ba1 -------------------------------------------------------------- Moody's Investors Service has lowered the global local currency deposit ratings of sixteen Argentinean banks and the local currency debt ratings of four banks. The outlooks on the ratings were changed to stable, with the exception of those of Banco Hipotecario S.A. which remain on negative outlook. These rating actions conclude the review for possible downgrade initiated on May 29, 2009. The banks affected are: Banco de la Ciudad de Buenos Aires, Banco Comafi S.A, Banco Credicoop Cooperativo Limitado, Banco Finansur S.A., Banco de Galicia y Buenos Aires S.A, Nuevo Banco Industrial de Azul S.A., Banco Macro S.A., Nuevo Banco Bisel S.A., Banco del Tucuman S.A., Banco Patagonia S.A., Banco de Santiago del Estero S.A., Nuevo Banco de La Rioja S.A., Banco Piano S.A., Banco Supervielle S.A. Banco Regional de Cuyo S.A. and Banco Hipotecario S.A. The rating agency also noted that the global foreign currency deposit and debt ratings, as well as the local and foreign currency national scale deposit and debt ratings of these banks were not affected by these actions, and have therefore been affirmed. Moody's said that the rating actions derive from its current global reassessment of the systemic support available to banking systems in the event of a prolonged financial crisis The actions reflect Moody's reevaluation of the amount of "uplift" from government support that may be incorporated in the deposit ratings of Argentinean banks. Moody's indicated that the ratings downgrades were therefore not related to the banks' operating performances and cited the banking system's relative resilience during the current crisis despite both externally and internally generated financial shocks. This view is based on the banks' continued profitability, adequate liquidity and capital, and manageable delinquency levels. Accordingly, Moody's affirmed the stand-alone bank financial strength ratings of the aforementioned institutions. Refined Systemic Support Indicator For Argentina Reflects Manageable Risk Of Systemic Banking Losses Moody's has refined its assessment of systemic support for Argentinean banks based on a new support indicator that reflects the capacity and willingness of the government to support the banking system as a whole in the event of a systemic crisis. While Moody's continues to believe that most governments are likely to support their banking systems to avoid a meltdown of the local payment system in such an event, the agency views the capacity of a country and its central bank to support the nation's banks to be more closely aligned with the government's own credit strength. The rating agency noted that the ratings of a large number of banks worldwide are being reevaluated, particularly those that benefit from several notches of rating uplift due to systemic support, and are in countries where the gap between the local currency government bond rating and the local currency deposit ceiling is wide. The revised approach to systemic support is outlined in the special report entitled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries", published in May 2009. Moody's said that the new systemic support indicator for Argentina has been established at B1 replacing the Ba1 local currency deposit ceiling as the systemic support input for bank ratings. The B1 support indicator nevertheless reflects two notches of uplift from its anchor rating, which is the Argentine government's B3 local currency bond rating. The two-notch uplift reflects Moody's view that the modest size of the Argentine banking system relative to the government's resources and to GDP makes the risk of crystallization of banking losses on the government's balance sheet relatively moderate. Moreover, the Argentine authorities are now more capable of assisting financial institutions in the case of systemic stress than they were in the early 2000s, given the small share (13.5%) of foreign currency liabilities relative to the country's international reserves. Contrary to the period during which the Argentine peso was pegged to the US dollar, the Central Bank has full monetary authority and as a consequence is now in a position to use various financial and non-financial tools to manage potential stress in the country's banking system, said Moody's. These ratings were affected: [1] Banco de la Ciudad de Buenos Aires: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [2] Banco Comafi S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; global local currency debt rating lowered to Ba3 from Ba2. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa2.ar were affirmed. [3] Banco Credicoop Cooperativo Limitado: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [4] Banco Finansur S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B2 from B1; global local currency debt rating lowered to B2 from B1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt rating of Aa3.ar was affirmed. [5] Banco de Galicia y Buenos Aires S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [6] Nuevo Banco Industrial de Azul S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B1 from Ba3; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [7] Banco Macro S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; global local currency debt rating lowered to Ba2 from Ba1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were affirmed. [8] Nuevo Banco Bisel S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [9] Banco del Tucuman S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [10] Banco Patagonia S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [11] Banco de Santiago del Estero S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [12] Nuevo Banco de La Rioja S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [13] Banco Piano S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [14] Banco Supervielle S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [15] Banco Regional de Cuyo S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [16] Banco Hipotecario S.A.: The BFSR of D was affirmed with negative outlook. The global local currency deposit rating downgraded to Ba2 from Ba1, with negative outlook; and the global local currency debt rating lowered to Ba2 from Ba1 with negative outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were placed on negative outlook as well. BANCO MACRO: Moody's Cuts Global Local Cur. Deposit Rating to Ba2 ----------------------------------------------------------------- Moody's Investors Service has lowered the global local currency deposit ratings of sixteen Argentinean banks and the local currency debt ratings of four banks. The outlooks on the ratings were changed to stable, with the exception of those of Banco Hipotecario S.A. which remain on negative outlook. These rating actions conclude the review for possible downgrade initiated on May 29, 2009. The banks affected are: Banco de la Ciudad de Buenos Aires, Banco Comafi S.A, Banco Credicoop Cooperativo Limitado, Banco Finansur S.A., Banco de Galicia y Buenos Aires S.A, Nuevo Banco Industrial de Azul S.A., Banco Macro S.A., Nuevo Banco Bisel S.A., Banco del Tucuman S.A., Banco Patagonia S.A., Banco de Santiago del Estero S.A., Nuevo Banco de La Rioja S.A., Banco Piano S.A., Banco Supervielle S.A. Banco Regional de Cuyo S.A. and Banco Hipotecario S.A. The rating agency also noted that the global foreign currency deposit and debt ratings, as well as the local and foreign currency national scale deposit and debt ratings of these banks were not affected by these actions, and have therefore been affirmed. Moody's said that the rating actions derive from its current global reassessment of the systemic support available to banking systems in the event of a prolonged financial crisis The actions reflect Moody's reevaluation of the amount of "uplift" from government support that may be incorporated in the deposit ratings of Argentinean banks. Moody's indicated that the ratings downgrades were therefore not related to the banks' operating performances and cited the banking system's relative resilience during the current crisis despite both externally and internally generated financial shocks. This view is based on the banks' continued profitability, adequate liquidity and capital, and manageable delinquency levels. Accordingly, Moody's affirmed the stand-alone bank financial strength ratings of the aforementioned institutions. Refined Systemic Support Indicator For Argentina Reflects Manageable Risk Of Systemic Banking Losses Moody's has refined its assessment of systemic support for Argentinean banks based on a new support indicator that reflects the capacity and willingness of the government to support the banking system as a whole in the event of a systemic crisis. While Moody's continues to believe that most governments are likely to support their banking systems to avoid a meltdown of the local payment system in such an event, the agency views the capacity of a country and its central bank to support the nation's banks to be more closely aligned with the government's own credit strength. The rating agency noted that the ratings of a large number of banks worldwide are being reevaluated, particularly those that benefit from several notches of rating uplift due to systemic support, and are in countries where the gap between the local currency government bond rating and the local currency deposit ceiling is wide. The revised approach to systemic support is outlined in the special report entitled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries", published in May 2009. Moody's said that the new systemic support indicator for Argentina has been established at B1 replacing the Ba1 local currency deposit ceiling as the systemic support input for bank ratings. The B1 support indicator nevertheless reflects two notches of uplift from its anchor rating, which is the Argentine government's B3 local currency bond rating. The two-notch uplift reflects Moody's view that the modest size of the Argentine banking system relative to the government's resources and to GDP makes the risk of crystallization of banking losses on the government's balance sheet relatively moderate. Moreover, the Argentine authorities are now more capable of assisting financial institutions in the case of systemic stress than they were in the early 2000s, given the small share (13.5%) of foreign currency liabilities relative to the country's international reserves. Contrary to the period during which the Argentine peso was pegged to the US dollar, the Central Bank has full monetary authority and as a consequence is now in a position to use various financial and non-financial tools to manage potential stress in the country's banking system, said Moody's. These ratings were affected: [1] Banco de la Ciudad de Buenos Aires: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [2] Banco Comafi S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; global local currency debt rating lowered to Ba3 from Ba2. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa2.ar were affirmed. [3] Banco Credicoop Cooperativo Limitado: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [4] Banco Finansur S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B2 from B1; global local currency debt rating lowered to B2 from B1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt rating of Aa3.ar was affirmed. [5] Banco de Galicia y Buenos Aires S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [6] Nuevo Banco Industrial de Azul S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B1 from Ba3; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [7] Banco Macro S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; global local currency debt rating lowered to Ba2 from Ba1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were affirmed. [8] Nuevo Banco Bisel S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [9] Banco del Tucuman S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [10] Banco Patagonia S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [11] Banco de Santiago del Estero S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [12] Nuevo Banco de La Rioja S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [13] Banco Piano S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [14] Banco Supervielle S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [15] Banco Regional de Cuyo S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [16] Banco Hipotecario S.A.: The BFSR of D was affirmed with negative outlook. The global local currency deposit rating downgraded to Ba2 from Ba1, with negative outlook; and the global local currency debt rating lowered to Ba2 from Ba1 with negative outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were placed on negative outlook as well. BANCO PATAGONIA: Moody's Cuts Deposit Rating to Ba2 From Ba1 ------------------------------------------------------------ Moody's Investors Service has lowered the global local currency deposit ratings of sixteen Argentinean banks and the local currency debt ratings of four banks. The outlooks on the ratings were changed to stable, with the exception of those of Banco Hipotecario S.A. which remain on negative outlook. These rating actions conclude the review for possible downgrade initiated on May 29, 2009. The banks affected are: Banco de la Ciudad de Buenos Aires, Banco Comafi S.A, Banco Credicoop Cooperativo Limitado, Banco Finansur S.A., Banco de Galicia y Buenos Aires S.A, Nuevo Banco Industrial de Azul S.A., Banco Macro S.A., Nuevo Banco Bisel S.A., Banco del Tucuman S.A., Banco Patagonia S.A., Banco de Santiago del Estero S.A., Nuevo Banco de La Rioja S.A., Banco Piano S.A., Banco Supervielle S.A. Banco Regional de Cuyo S.A. and Banco Hipotecario S.A. The rating agency also noted that the global foreign currency deposit and debt ratings, as well as the local and foreign currency national scale deposit and debt ratings of these banks were not affected by these actions, and have therefore been affirmed. Moody's said that the rating actions derive from its current global reassessment of the systemic support available to banking systems in the event of a prolonged financial crisis The actions reflect Moody's reevaluation of the amount of "uplift" from government support that may be incorporated in the deposit ratings of Argentinean banks. Moody's indicated that the ratings downgrades were therefore not related to the banks' operating performances and cited the banking system's relative resilience during the current crisis despite both externally and internally generated financial shocks. This view is based on the banks' continued profitability, adequate liquidity and capital, and manageable delinquency levels. Accordingly, Moody's affirmed the stand-alone bank financial strength ratings of the aforementioned institutions. Refined Systemic Support Indicator For Argentina Reflects Manageable Risk Of Systemic Banking Losses Moody's has refined its assessment of systemic support for Argentinean banks based on a new support indicator that reflects the capacity and willingness of the government to support the banking system as a whole in the event of a systemic crisis. While Moody's continues to believe that most governments are likely to support their banking systems to avoid a meltdown of the local payment system in such an event, the agency views the capacity of a country and its central bank to support the nation's banks to be more closely aligned with the government's own credit strength. The rating agency noted that the ratings of a large number of banks worldwide are being reevaluated, particularly those that benefit from several notches of rating uplift due to systemic support, and are in countries where the gap between the local currency government bond rating and the local currency deposit ceiling is wide. The revised approach to systemic support is outlined in the special report entitled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries", published in May 2009. Moody's said that the new systemic support indicator for Argentina has been established at B1 replacing the Ba1 local currency deposit ceiling as the systemic support input for bank ratings. The B1 support indicator nevertheless reflects two notches of uplift from its anchor rating, which is the Argentine government's B3 local currency bond rating. The two-notch uplift reflects Moody's view that the modest size of the Argentine banking system relative to the government's resources and to GDP makes the risk of crystallization of banking losses on the government's balance sheet relatively moderate. Moreover, the Argentine authorities are now more capable of assisting financial institutions in the case of systemic stress than they were in the early 2000s, given the small share (13.5%) of foreign currency liabilities relative to the country's international reserves. Contrary to the period during which the Argentine peso was pegged to the US dollar, the Central Bank has full monetary authority and as a consequence is now in a position to use various financial and non-financial tools to manage potential stress in the country's banking system, said Moody's. These ratings were affected: [1] Banco de la Ciudad de Buenos Aires: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [2] Banco Comafi S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; global local currency debt rating lowered to Ba3 from Ba2. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa2.ar were affirmed. [3] Banco Credicoop Cooperativo Limitado: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [4] Banco Finansur S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B2 from B1; global local currency debt rating lowered to B2 from B1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt rating of Aa3.ar was affirmed. [5] Banco de Galicia y Buenos Aires S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [6] Nuevo Banco Industrial de Azul S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B1 from Ba3; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [7] Banco Macro S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; global local currency debt rating lowered to Ba2 from Ba1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were affirmed. [8] Nuevo Banco Bisel S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [9] Banco del Tucuman S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [10] Banco Patagonia S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [11] Banco de Santiago del Estero S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [12] Nuevo Banco de La Rioja S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [13] Banco Piano S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [14] Banco Supervielle S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [15] Banco Regional de Cuyo S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [16] Banco Hipotecario S.A.: The BFSR of D was affirmed with negative outlook. The global local currency deposit rating downgraded to Ba2 from Ba1, with negative outlook; and the global local currency debt rating lowered to Ba2 from Ba1 with negative outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were placed on negative outlook as well. BANCO PIANO: Moody's Cuts Global Local Cur. Deposit Rating to Ba3 ----------------------------------------------------------------- Moody's Investors Service has lowered the global local currency deposit ratings of sixteen Argentinean banks and the local currency debt ratings of four banks. The outlooks on the ratings were changed to stable, with the exception of those of Banco Hipotecario S.A. which remain on negative outlook. These rating actions conclude the review for possible downgrade initiated on May 29, 2009. The banks affected are: Banco de la Ciudad de Buenos Aires, Banco Comafi S.A, Banco Credicoop Cooperativo Limitado, Banco Finansur S.A., Banco de Galicia y Buenos Aires S.A, Nuevo Banco Industrial de Azul S.A., Banco Macro S.A., Nuevo Banco Bisel S.A., Banco del Tucuman S.A., Banco Patagonia S.A., Banco de Santiago del Estero S.A., Nuevo Banco de La Rioja S.A., Banco Piano S.A., Banco Supervielle S.A. Banco Regional de Cuyo S.A. and Banco Hipotecario S.A. The rating agency also noted that the global foreign currency deposit and debt ratings, as well as the local and foreign currency national scale deposit and debt ratings of these banks were not affected by these actions, and have therefore been affirmed. Moody's said that the rating actions derive from its current global reassessment of the systemic support available to banking systems in the event of a prolonged financial crisis The actions reflect Moody's reevaluation of the amount of "uplift" from government support that may be incorporated in the deposit ratings of Argentinean banks. Moody's indicated that the ratings downgrades were therefore not related to the banks' operating performances and cited the banking system's relative resilience during the current crisis despite both externally and internally generated financial shocks. This view is based on the banks' continued profitability, adequate liquidity and capital, and manageable delinquency levels. Accordingly, Moody's affirmed the stand-alone bank financial strength ratings of the aforementioned institutions. Refined Systemic Support Indicator For Argentina Reflects Manageable Risk Of Systemic Banking Losses Moody's has refined its assessment of systemic support for Argentinean banks based on a new support indicator that reflects the capacity and willingness of the government to support the banking system as a whole in the event of a systemic crisis. While Moody's continues to believe that most governments are likely to support their banking systems to avoid a meltdown of the local payment system in such an event, the agency views the capacity of a country and its central bank to support the nation's banks to be more closely aligned with the government's own credit strength. The rating agency noted that the ratings of a large number of banks worldwide are being reevaluated, particularly those that benefit from several notches of rating uplift due to systemic support, and are in countries where the gap between the local currency government bond rating and the local currency deposit ceiling is wide. The revised approach to systemic support is outlined in the special report entitled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries", published in May 2009. Moody's said that the new systemic support indicator for Argentina has been established at B1 replacing the Ba1 local currency deposit ceiling as the systemic support input for bank ratings. The B1 support indicator nevertheless reflects two notches of uplift from its anchor rating, which is the Argentine government's B3 local currency bond rating. The two-notch uplift reflects Moody's view that the modest size of the Argentine banking system relative to the government's resources and to GDP makes the risk of crystallization of banking losses on the government's balance sheet relatively moderate. Moreover, the Argentine authorities are now more capable of assisting financial institutions in the case of systemic stress than they were in the early 2000s, given the small share (13.5%) of foreign currency liabilities relative to the country's international reserves. Contrary to the period during which the Argentine peso was pegged to the US dollar, the Central Bank has full monetary authority and as a consequence is now in a position to use various financial and non-financial tools to manage potential stress in the country's banking system, said Moody's. These ratings were affected: [1] Banco de la Ciudad de Buenos Aires: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [2] Banco Comafi S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; global local currency debt rating lowered to Ba3 from Ba2. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa2.ar were affirmed. [3] Banco Credicoop Cooperativo Limitado: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [4] Banco Finansur S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B2 from B1; global local currency debt rating lowered to B2 from B1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt rating of Aa3.ar was affirmed. [5] Banco de Galicia y Buenos Aires S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [6] Nuevo Banco Industrial de Azul S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B1 from Ba3; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [7] Banco Macro S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; global local currency debt rating lowered to Ba2 from Ba1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were affirmed. [8] Nuevo Banco Bisel S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [9] Banco del Tucuman S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [10] Banco Patagonia S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [11] Banco de Santiago del Estero S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [12] Nuevo Banco de La Rioja S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [13] Banco Piano S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [14] Banco Supervielle S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [15] Banco Regional de Cuyo S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [16] Banco Hipotecario S.A.: The BFSR of D was affirmed with negative outlook. The global local currency deposit rating downgraded to Ba2 from Ba1, with negative outlook; and the global local currency debt rating lowered to Ba2 from Ba1 with negative outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were placed on negative outlook as well. BANCO REGIONAL: Moody's Cuts Deposit Rating to Ba3 From Ba2 ----------------------------------------------------------- Moody's Investors Service has lowered the global local currency deposit ratings of sixteen Argentinean banks and the local currency debt ratings of four banks. The outlooks on the ratings were changed to stable, with the exception of those of Banco Hipotecario S.A. which remain on negative outlook. These rating actions conclude the review for possible downgrade initiated on May 29, 2009. The banks affected are: Banco de la Ciudad de Buenos Aires, Banco Comafi S.A, Banco Credicoop Cooperativo Limitado, Banco Finansur S.A., Banco de Galicia y Buenos Aires S.A, Nuevo Banco Industrial de Azul S.A., Banco Macro S.A., Nuevo Banco Bisel S.A., Banco del Tucuman S.A., Banco Patagonia S.A., Banco de Santiago del Estero S.A., Nuevo Banco de La Rioja S.A., Banco Piano S.A., Banco Supervielle S.A. Banco Regional de Cuyo S.A. and Banco Hipotecario S.A. The rating agency also noted that the global foreign currency deposit and debt ratings, as well as the local and foreign currency national scale deposit and debt ratings of these banks were not affected by these actions, and have therefore been affirmed. Moody's said that the rating actions derive from its current global reassessment of the systemic support available to banking systems in the event of a prolonged financial crisis The actions reflect Moody's reevaluation of the amount of "uplift" from government support that may be incorporated in the deposit ratings of Argentinean banks. Moody's indicated that the ratings downgrades were therefore not related to the banks' operating performances and cited the banking system's relative resilience during the current crisis despite both externally and internally generated financial shocks. This view is based on the banks' continued profitability, adequate liquidity and capital, and manageable delinquency levels. Accordingly, Moody's affirmed the stand-alone bank financial strength ratings of the aforementioned institutions. Refined Systemic Support Indicator For Argentina Reflects Manageable Risk Of Systemic Banking Losses Moody's has refined its assessment of systemic support for Argentinean banks based on a new support indicator that reflects the capacity and willingness of the government to support the banking system as a whole in the event of a systemic crisis. While Moody's continues to believe that most governments are likely to support their banking systems to avoid a meltdown of the local payment system in such an event, the agency views the capacity of a country and its central bank to support the nation's banks to be more closely aligned with the government's own credit strength. The rating agency noted that the ratings of a large number of banks worldwide are being reevaluated, particularly those that benefit from several notches of rating uplift due to systemic support, and are in countries where the gap between the local currency government bond rating and the local currency deposit ceiling is wide. The revised approach to systemic support is outlined in the special report entitled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries", published in May 2009. Moody's said that the new systemic support indicator for Argentina has been established at B1 replacing the Ba1 local currency deposit ceiling as the systemic support input for bank ratings. The B1 support indicator nevertheless reflects two notches of uplift from its anchor rating, which is the Argentine government's B3 local currency bond rating. The two-notch uplift reflects Moody's view that the modest size of the Argentine banking system relative to the government's resources and to GDP makes the risk of crystallization of banking losses on the government's balance sheet relatively moderate. Moreover, the Argentine authorities are now more capable of assisting financial institutions in the case of systemic stress than they were in the early 2000s, given the small share (13.5%) of foreign currency liabilities relative to the country's international reserves. Contrary to the period during which the Argentine peso was pegged to the US dollar, the Central Bank has full monetary authority and as a consequence is now in a position to use various financial and non-financial tools to manage potential stress in the country's banking system, said Moody's. These ratings were affected: [1] Banco de la Ciudad de Buenos Aires: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [2] Banco Comafi S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; global local currency debt rating lowered to Ba3 from Ba2. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa2.ar were affirmed. [3] Banco Credicoop Cooperativo Limitado: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [4] Banco Finansur S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B2 from B1; global local currency debt rating lowered to B2 from B1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt rating of Aa3.ar was affirmed. [5] Banco de Galicia y Buenos Aires S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [6] Nuevo Banco Industrial de Azul S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B1 from Ba3; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [7] Banco Macro S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; global local currency debt rating lowered to Ba2 from Ba1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were affirmed. [8] Nuevo Banco Bisel S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [9] Banco del Tucuman S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [10] Banco Patagonia S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [11] Banco de Santiago del Estero S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [12] Nuevo Banco de La Rioja S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [13] Banco Piano S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [14] Banco Supervielle S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [15] Banco Regional de Cuyo S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [16] Banco Hipotecario S.A.: The BFSR of D was affirmed with negative outlook. The global local currency deposit rating downgraded to Ba2 from Ba1, with negative outlook; and the global local currency debt rating lowered to Ba2 from Ba1 with negative outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were placed on negative outlook as well. BANCO SUPERVIELLE: Moody's Cuts Deposit Rating to Ba3 From Ba2 -------------------------------------------------------------- Moody's Investors Service has lowered the global local currency deposit ratings of sixteen Argentinean banks and the local currency debt ratings of four banks. The outlooks on the ratings were changed to stable, with the exception of those of Banco Hipotecario S.A. which remain on negative outlook. These rating actions conclude the review for possible downgrade initiated on May 29, 2009. The banks affected are: Banco de la Ciudad de Buenos Aires, Banco Comafi S.A, Banco Credicoop Cooperativo Limitado, Banco Finansur S.A., Banco de Galicia y Buenos Aires S.A, Nuevo Banco Industrial de Azul S.A., Banco Macro S.A., Nuevo Banco Bisel S.A., Banco del Tucuman S.A., Banco Patagonia S.A., Banco de Santiago del Estero S.A., Nuevo Banco de La Rioja S.A., Banco Piano S.A., Banco Supervielle S.A. Banco Regional de Cuyo S.A. and Banco Hipotecario S.A. The rating agency also noted that the global foreign currency deposit and debt ratings, as well as the local and foreign currency national scale deposit and debt ratings of these banks were not affected by these actions, and have therefore been affirmed. Moody's said that the rating actions derive from its current global reassessment of the systemic support available to banking systems in the event of a prolonged financial crisis The actions reflect Moody's reevaluation of the amount of "uplift" from government support that may be incorporated in the deposit ratings of Argentinean banks. Moody's indicated that the ratings downgrades were therefore not related to the banks' operating performances and cited the banking system's relative resilience during the current crisis despite both externally and internally generated financial shocks. This view is based on the banks' continued profitability, adequate liquidity and capital, and manageable delinquency levels. Accordingly, Moody's affirmed the stand-alone bank financial strength ratings of the aforementioned institutions. Refined Systemic Support Indicator For Argentina Reflects Manageable Risk Of Systemic Banking Losses Moody's has refined its assessment of systemic support for Argentinean banks based on a new support indicator that reflects the capacity and willingness of the government to support the banking system as a whole in the event of a systemic crisis. While Moody's continues to believe that most governments are likely to support their banking systems to avoid a meltdown of the local payment system in such an event, the agency views the capacity of a country and its central bank to support the nation's banks to be more closely aligned with the government's own credit strength. The rating agency noted that the ratings of a large number of banks worldwide are being reevaluated, particularly those that benefit from several notches of rating uplift due to systemic support, and are in countries where the gap between the local currency government bond rating and the local currency deposit ceiling is wide. The revised approach to systemic support is outlined in the special report entitled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries", published in May 2009. Moody's said that the new systemic support indicator for Argentina has been established at B1 replacing the Ba1 local currency deposit ceiling as the systemic support input for bank ratings. The B1 support indicator nevertheless reflects two notches of uplift from its anchor rating, which is the Argentine government's B3 local currency bond rating. The two-notch uplift reflects Moody's view that the modest size of the Argentine banking system relative to the government's resources and to GDP makes the risk of crystallization of banking losses on the government's balance sheet relatively moderate. Moreover, the Argentine authorities are now more capable of assisting financial institutions in the case of systemic stress than they were in the early 2000s, given the small share (13.5%) of foreign currency liabilities relative to the country's international reserves. Contrary to the period during which the Argentine peso was pegged to the US dollar, the Central Bank has full monetary authority and as a consequence is now in a position to use various financial and non-financial tools to manage potential stress in the country's banking system, said Moody's. These ratings were affected: [1] Banco de la Ciudad de Buenos Aires: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [2] Banco Comafi S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; global local currency debt rating lowered to Ba3 from Ba2. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa2.ar were affirmed. [3] Banco Credicoop Cooperativo Limitado: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [4] Banco Finansur S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B2 from B1; global local currency debt rating lowered to B2 from B1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt rating of Aa3.ar was affirmed. [5] Banco de Galicia y Buenos Aires S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [6] Nuevo Banco Industrial de Azul S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B1 from Ba3; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [7] Banco Macro S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; global local currency debt rating lowered to Ba2 from Ba1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were affirmed. [8] Nuevo Banco Bisel S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [9] Banco del Tucuman S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [10] Banco Patagonia S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [11] Banco de Santiago del Estero S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [12] Nuevo Banco de La Rioja S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [13] Banco Piano S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [14] Banco Supervielle S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [15] Banco Regional de Cuyo S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [16] Banco Hipotecario S.A.: The BFSR of D was affirmed with negative outlook. The global local currency deposit rating downgraded to Ba2 from Ba1, with negative outlook; and the global local currency debt rating lowered to Ba2 from Ba1 with negative outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were placed on negative outlook as well. INTERVIEW SRL: Trustee Verifying Proofs of Claim Until October 22 ----------------------------------------------------------------- The court-appointed trustee for Interview S.R.L.'s bankruptcy proceedings will be verifying creditors' proofs of claim until October 22, 2009. LUD NAZAROVA: Proofs of Claim Verification Due on November 20 ------------------------------------------------------------- Nelida Grunblatt de Nobile, the court-appointed trustee for Lud Nazarova SRL's bankruptcy proceedings, will be verifying creditors' proofs of claim until November 20, 2009. The trustee will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 6 in Buenos Aires, with the assistance of Clerk No. 11, 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: Nelida Grunblatt de Nobile Felipe Vallese 119 Argentina MEDIGUARDIA SA: Trustee Verifying Proofs of Claim Until Sept. 18 ---------------------------------------------------------------- The court-appointed trustee for Mediguardia S.A.'s bankruptcy proceedings will be verifying creditors' proofs of claim until September 18, 2009. The trustee will present the validated claims in court as individual reports on November 2, 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. NUEVO BANCO: Moody's Cuts Global Local Cur. Deposit Rating to B1 ---------------------------------------------------------------- Moody's Investors Service has lowered the global local currency deposit ratings of sixteen Argentinean banks and the local currency debt ratings of four banks. The outlooks on the ratings were changed to stable, with the exception of those of Banco Hipotecario S.A. which remain on negative outlook. These rating actions conclude the review for possible downgrade initiated on May 29, 2009. The banks affected are: Banco de la Ciudad de Buenos Aires, Banco Comafi S.A, Banco Credicoop Cooperativo Limitado, Banco Finansur S.A., Banco de Galicia y Buenos Aires S.A, Nuevo Banco Industrial de Azul S.A., Banco Macro S.A., Nuevo Banco Bisel S.A., Banco del Tucuman S.A., Banco Patagonia S.A., Banco de Santiago del Estero S.A., Nuevo Banco de La Rioja S.A., Banco Piano S.A., Banco Supervielle S.A. Banco Regional de Cuyo S.A. and Banco Hipotecario S.A. The rating agency also noted that the global foreign currency deposit and debt ratings, as well as the local and foreign currency national scale deposit and debt ratings of these banks were not affected by these actions, and have therefore been affirmed. Moody's said that the rating actions derive from its current global reassessment of the systemic support available to banking systems in the event of a prolonged financial crisis The actions reflect Moody's reevaluation of the amount of "uplift" from government support that may be incorporated in the deposit ratings of Argentinean banks. Moody's indicated that the ratings downgrades were therefore not related to the banks' operating performances and cited the banking system's relative resilience during the current crisis despite both externally and internally generated financial shocks. This view is based on the banks' continued profitability, adequate liquidity and capital, and manageable delinquency levels. Accordingly, Moody's affirmed the stand-alone bank financial strength ratings of the aforementioned institutions. Refined Systemic Support Indicator For Argentina Reflects Manageable Risk Of Systemic Banking Losses Moody's has refined its assessment of systemic support for Argentinean banks based on a new support indicator that reflects the capacity and willingness of the government to support the banking system as a whole in the event of a systemic crisis. While Moody's continues to believe that most governments are likely to support their banking systems to avoid a meltdown of the local payment system in such an event, the agency views the capacity of a country and its central bank to support the nation's banks to be more closely aligned with the government's own credit strength. The rating agency noted that the ratings of a large number of banks worldwide are being reevaluated, particularly those that benefit from several notches of rating uplift due to systemic support, and are in countries where the gap between the local currency government bond rating and the local currency deposit ceiling is wide. The revised approach to systemic support is outlined in the special report entitled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries", published in May 2009. Moody's said that the new systemic support indicator for Argentina has been established at B1 replacing the Ba1 local currency deposit ceiling as the systemic support input for bank ratings. The B1 support indicator nevertheless reflects two notches of uplift from its anchor rating, which is the Argentine government's B3 local currency bond rating. The two-notch uplift reflects Moody's view that the modest size of the Argentine banking system relative to the government's resources and to GDP makes the risk of crystallization of banking losses on the government's balance sheet relatively moderate. Moreover, the Argentine authorities are now more capable of assisting financial institutions in the case of systemic stress than they were in the early 2000s, given the small share (13.5%) of foreign currency liabilities relative to the country's international reserves. Contrary to the period during which the Argentine peso was pegged to the US dollar, the Central Bank has full monetary authority and as a consequence is now in a position to use various financial and non-financial tools to manage potential stress in the country's banking system, said Moody's. These ratings were affected: [1] Banco de la Ciudad de Buenos Aires: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [2] Banco Comafi S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; global local currency debt rating lowered to Ba3 from Ba2. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa2.ar were affirmed. [3] Banco Credicoop Cooperativo Limitado: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [4] Banco Finansur S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B2 from B1; global local currency debt rating lowered to B2 from B1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt rating of Aa3.ar was affirmed. [5] Banco de Galicia y Buenos Aires S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [6] Nuevo Banco Industrial de Azul S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B1 from Ba3; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [7] Banco Macro S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; global local currency debt rating lowered to Ba2 from Ba1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were affirmed. [8] Nuevo Banco Bisel S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [9] Banco del Tucuman S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [10] Banco Patagonia S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [11] Banco de Santiago del Estero S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [12] Nuevo Banco de La Rioja S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [13] Banco Piano S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [14] Banco Supervielle S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [15] Banco Regional de Cuyo S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [16] Banco Hipotecario S.A.: The BFSR of D was affirmed with negative outlook. The global local currency deposit rating downgraded to Ba2 from Ba1, with negative outlook; and the global local currency debt rating lowered to Ba2 from Ba1 with negative outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were placed on negative outlook as well. NUEVO BANCO BISEL: Moody's Cuts Deposit Rating to Ba2 From Ba1 -------------------------------------------------------------- Moody's Investors Service has lowered the global local currency deposit ratings of sixteen Argentinean banks and the local currency debt ratings of four banks. The outlooks on the ratings were changed to stable, with the exception of those of Banco Hipotecario S.A. which remain on negative outlook. These rating actions conclude the review for possible downgrade initiated on May 29, 2009. The banks affected are: Banco de la Ciudad de Buenos Aires, Banco Comafi S.A, Banco Credicoop Cooperativo Limitado, Banco Finansur S.A., Banco de Galicia y Buenos Aires S.A, Nuevo Banco Industrial de Azul S.A., Banco Macro S.A., Nuevo Banco Bisel S.A., Banco del Tucuman S.A., Banco Patagonia S.A., Banco de Santiago del Estero S.A., Nuevo Banco de La Rioja S.A., Banco Piano S.A., Banco Supervielle S.A. Banco Regional de Cuyo S.A. and Banco Hipotecario S.A. The rating agency also noted that the global foreign currency deposit and debt ratings, as well as the local and foreign currency national scale deposit and debt ratings of these banks were not affected by these actions, and have therefore been affirmed. Moody's said that the rating actions derive from its current global reassessment of the systemic support available to banking systems in the event of a prolonged financial crisis The actions reflect Moody's reevaluation of the amount of "uplift" from government support that may be incorporated in the deposit ratings of Argentinean banks. Moody's indicated that the ratings downgrades were therefore not related to the banks' operating performances and cited the banking system's relative resilience during the current crisis despite both externally and internally generated financial shocks. This view is based on the banks' continued profitability, adequate liquidity and capital, and manageable delinquency levels. Accordingly, Moody's affirmed the stand-alone bank financial strength ratings of the aforementioned institutions. Refined Systemic Support Indicator For Argentina Reflects Manageable Risk Of Systemic Banking Losses Moody's has refined its assessment of systemic support for Argentinean banks based on a new support indicator that reflects the capacity and willingness of the government to support the banking system as a whole in the event of a systemic crisis. While Moody's continues to believe that most governments are likely to support their banking systems to avoid a meltdown of the local payment system in such an event, the agency views the capacity of a country and its central bank to support the nation's banks to be more closely aligned with the government's own credit strength. The rating agency noted that the ratings of a large number of banks worldwide are being reevaluated, particularly those that benefit from several notches of rating uplift due to systemic support, and are in countries where the gap between the local currency government bond rating and the local currency deposit ceiling is wide. The revised approach to systemic support is outlined in the special report entitled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries", published in May 2009. Moody's said that the new systemic support indicator for Argentina has been established at B1 replacing the Ba1 local currency deposit ceiling as the systemic support input for bank ratings. The B1 support indicator nevertheless reflects two notches of uplift from its anchor rating, which is the Argentine government's B3 local currency bond rating. The two-notch uplift reflects Moody's view that the modest size of the Argentine banking system relative to the government's resources and to GDP makes the risk of crystallization of banking losses on the government's balance sheet relatively moderate. Moreover, the Argentine authorities are now more capable of assisting financial institutions in the case of systemic stress than they were in the early 2000s, given the small share (13.5%) of foreign currency liabilities relative to the country's international reserves. Contrary to the period during which the Argentine peso was pegged to the US dollar, the Central Bank has full monetary authority and as a consequence is now in a position to use various financial and non-financial tools to manage potential stress in the country's banking system, said Moody's. These ratings were affected: [1] Banco de la Ciudad de Buenos Aires: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [2] Banco Comafi S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; global local currency debt rating lowered to Ba3 from Ba2. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa2.ar were affirmed. [3] Banco Credicoop Cooperativo Limitado: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [4] Banco Finansur S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B2 from B1; global local currency debt rating lowered to B2 from B1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt rating of Aa3.ar was affirmed. [5] Banco de Galicia y Buenos Aires S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [6] Nuevo Banco Industrial de Azul S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B1 from Ba3; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [7] Banco Macro S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; global local currency debt rating lowered to Ba2 from Ba1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were affirmed. [8] Nuevo Banco Bisel S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [9] Banco del Tucuman S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [10] Banco Patagonia S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [11] Banco de Santiago del Estero S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [12] Nuevo Banco de La Rioja S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [13] Banco Piano S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [14] Banco Supervielle S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [15] Banco Regional de Cuyo S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [16] Banco Hipotecario S.A.: The BFSR of D was affirmed with negative outlook. The global local currency deposit rating downgraded to Ba2 from Ba1, with negative outlook; and the global local currency debt rating lowered to Ba2 from Ba1 with negative outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were placed on negative outlook as well. NUEVO BANCO DE LA RIOJA: Moody's Cuts Deposit Rating to Ba3 ----------------------------------------------------------- Moody's Investors Service has lowered the global local currency deposit ratings of sixteen Argentinean banks and the local currency debt ratings of four banks. The outlooks on the ratings were changed to stable, with the exception of those of Banco Hipotecario S.A. which remain on negative outlook. These rating actions conclude the review for possible downgrade initiated on May 29, 2009. The banks affected are: Banco de la Ciudad de Buenos Aires, Banco Comafi S.A, Banco Credicoop Cooperativo Limitado, Banco Finansur S.A., Banco de Galicia y Buenos Aires S.A, Nuevo Banco Industrial de Azul S.A., Banco Macro S.A., Nuevo Banco Bisel S.A., Banco del Tucuman S.A., Banco Patagonia S.A., Banco de Santiago del Estero S.A., Nuevo Banco de La Rioja S.A., Banco Piano S.A., Banco Supervielle S.A. Banco Regional de Cuyo S.A. and Banco Hipotecario S.A. The rating agency also noted that the global foreign currency deposit and debt ratings, as well as the local and foreign currency national scale deposit and debt ratings of these banks were not affected by these actions, and have therefore been affirmed. Moody's said that the rating actions derive from its current global reassessment of the systemic support available to banking systems in the event of a prolonged financial crisis The actions reflect Moody's reevaluation of the amount of "uplift" from government support that may be incorporated in the deposit ratings of Argentinean banks. Moody's indicated that the ratings downgrades were therefore not related to the banks' operating performances and cited the banking system's relative resilience during the current crisis despite both externally and internally generated financial shocks. This view is based on the banks' continued profitability, adequate liquidity and capital, and manageable delinquency levels. Accordingly, Moody's affirmed the stand-alone bank financial strength ratings of the aforementioned institutions. Refined Systemic Support Indicator For Argentina Reflects Manageable Risk Of Systemic Banking Losses Moody's has refined its assessment of systemic support for Argentinean banks based on a new support indicator that reflects the capacity and willingness of the government to support the banking system as a whole in the event of a systemic crisis. While Moody's continues to believe that most governments are likely to support their banking systems to avoid a meltdown of the local payment system in such an event, the agency views the capacity of a country and its central bank to support the nation's banks to be more closely aligned with the government's own credit strength. The rating agency noted that the ratings of a large number of banks worldwide are being reevaluated, particularly those that benefit from several notches of rating uplift due to systemic support, and are in countries where the gap between the local currency government bond rating and the local currency deposit ceiling is wide. The revised approach to systemic support is outlined in the special report entitled "Financial Crisis More Closely Aligns Bank Credit Risk and Government Ratings in Non-Aaa Countries", published in May 2009. Moody's said that the new systemic support indicator for Argentina has been established at B1 replacing the Ba1 local currency deposit ceiling as the systemic support input for bank ratings. The B1 support indicator nevertheless reflects two notches of uplift from its anchor rating, which is the Argentine government's B3 local currency bond rating. The two-notch uplift reflects Moody's view that the modest size of the Argentine banking system relative to the government's resources and to GDP makes the risk of crystallization of banking losses on the government's balance sheet relatively moderate. Moreover, the Argentine authorities are now more capable of assisting financial institutions in the case of systemic stress than they were in the early 2000s, given the small share (13.5%) of foreign currency liabilities relative to the country's international reserves. Contrary to the period during which the Argentine peso was pegged to the US dollar, the Central Bank has full monetary authority and as a consequence is now in a position to use various financial and non-financial tools to manage potential stress in the country's banking system, said Moody's. These ratings were affected: [1] Banco de la Ciudad de Buenos Aires: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [2] Banco Comafi S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; global local currency debt rating lowered to Ba3 from Ba2. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa2.ar were affirmed. [3] Banco Credicoop Cooperativo Limitado: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [4] Banco Finansur S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B2 from B1; global local currency debt rating lowered to B2 from B1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt rating of Aa3.ar was affirmed. [5] Banco de Galicia y Buenos Aires S.A: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [6] Nuevo Banco Industrial de Azul S.A.: The BFSR of E+ was affirmed with stable outlook. The global local currency deposit rating downgraded to B1 from Ba3; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [7] Banco Macro S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; global local currency debt rating lowered to Ba2 from Ba1. Both new ratings were placed on stable outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were affirmed. [8] Nuevo Banco Bisel S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [9] Banco del Tucuman S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [10] Banco Patagonia S.A.: The BFSR of D was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba2 from Ba1; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa1.ar was affirmed. [11] Banco de Santiago del Estero S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [12] Nuevo Banco de La Rioja S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [13] Banco Piano S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [14] Banco Supervielle S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [15] Banco Regional de Cuyo S.A.: The BFSR of D- was affirmed with stable outlook. The global local currency deposit rating downgraded to Ba3 from Ba2; with stable outlook. The Argentinean National Scale local currency deposit rating of Aa2.ar was affirmed. [16] Banco Hipotecario S.A.: The BFSR of D was affirmed with negative outlook. The global local currency deposit rating downgraded to Ba2 from Ba1, with negative outlook; and the global local currency debt rating lowered to Ba2 from Ba1 with negative outlook. The Argentinean National Scale local currency deposit and debt ratings of Aa1.ar were placed on negative outlook as well. ORGANIZACION SUINDA: Creditors' Proofs of Debt Due on Nov. 10 ------------------------------------------------------------- The court-appointed trustee for Organizacion Suinda S.R.L.'s bankruptcy proceedings will be verifying creditors' proofs of claim until November 10, 2009. The trustee will present the validated claims in court as individual reports on February 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. 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 March 19, 2010. SBA SERVICIOS: Proofs of Claim Verification Due on September 30 --------------------------------------------------------------- Hector Vegetti, the court-appointed trustee for SBA Servicios SA's bankruptcy proceedings, will be verifying creditors' proofs of claim until September 30, 2009. Mr. Vegetti will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 25 in Buenos Aires, with the assistance of Clerk No. 49, 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: Hector Vegetti Montevideo 711 Argentina SEFRAMA SRL: Creditors' Proofs of Debt Due on October 29 -------------------------------------------------------- The court-appointed trustee for Seframa S.R.L.'s bankruptcy proceedings will be verifying creditors' proofs of claim until October 29, 2009. The trustee will present the validated claims in court as individual reports on December 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 March 1, 2010. SERUCIAL SA: Proofs of Claim Verification Due on September 22 ------------------------------------------------------------- Miguel Angel Humberto Pizzolo, the court-appointed trustee for Serucial SA's bankruptcy proceeding, will be verifying creditors' proofs of claim until September 22, 2009. Mr. Pizzolo will present the validated claims in court as individual reports. The National Commercial Court of First Instance No. 23 in Buenos Aires, with the assistance of Clerk No. 45, 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 June 28, 2010. SOUTHERN BUILD: Creditors' Proofs of Debt Due on October 14 ----------------------------------------------------------- The court-appointed trustee for Southern Build S.R.L.'s bankruptcy proceedings will be verifying creditors' proofs of claim until October 14, 2009. The trustee will present the validated claims in court as individual reports on November 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 February 16, 2010. TELECOM ARGENTINA: Telcom Italia Can't Vote at Firms' Assembly -------------------------------------------------------------- An Argentine federal judge suspended Telecom Italia SpA's voting rights ahead of Telecom Argentina SA shareholder assembly next week, Shane Romig at Dow Jones Newswires reports, citing local daily El Cronista. The report relates the decision follows Argentina's National Antitrust Commission's ruling that Telecom Italia must sell its stake in Telecom Argentina SA. As reported in the Troubled Company Reporter-Latin America on August 28, 2009, Dow Jones Newswires said that CNDC has given Telecom Italia one year to divest its stakes in Telecom Argentina due to a conflict of interest. CNDC Vice President Humberto Guarda Mendoza told Dow Jones Newswires on an August 27 interview that Telecom Italia must present a plan for the sale within 60 days. According to the report, CNDC said that Spain's Telefonica SA's minority stake in Telecom Italia creates a conflict between the two companies' Argentine operations. The report related that Telefonica owns Telefonica Argentina, which shares an effective duopoly over the Argentine telecommunications sector with Telecom. Dow Jones Newswires noted that the antitrust investigation is based on Telefonica SA's involvement in a consortium that bought a 24.7% stake in Telecom Italia, which gave Telefonica two seats on the Telecom Italia's board. The report said Telecom Italia argued that Telefonica SA's indirect 10% holding translates into a mere 1.8% stake in the Argentine unit and that its directors are barred from making decisions in the two markets where the providers overlap -- Argentina and Brazil. 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 of June 30, 2009, the company continues to carry Standard and Poor's "B-" LT Foreign Issuer Credit rating and "B" LT Local Issuer Credit rating. The company also continues to carry Fitch ratings' "B" LT FC Issuer default rating; "B+" LT LC Issuer default rating; and "B" Senior Unsecured Debt rating YPF SA: May Sell Up to US$78 Million in Bonds --------------------------------------------- YPF S.A., a unit of Spain's Repsol YPF SA, may sell up to ARS300 million (US$78 million) in bonds, Drew Benson at Bloomberg News reports, citing a company statement. According to the report, YPF SA’s board of directors approved the sale of ARS100 million worth of bonds and the possibility to expand the offer to ARS300 million. Headquartered in Buenos Aires, Argentina, YPF S.A. is an integrated oil and gas company engaged in the exploration, development and production of oil and gas, natural gas and electricity-generation activities (upstream), the refining, marketing, transportation and distribution of oil and a range of petroleum products, petroleum derivatives, petrochemicals and liquid petroleum gas (downstream). The company is a subsidiary of Repsol YPF, S.A., a Spanish company engaged in oil exploration and refining, which holds 99.04% of its shares. Its international operations are conducted through its subsidiaries, YPF International S.A. and YPF Holdings Inc. * * * As reported in the Troubled Company Reporter-Latin America on June 9, 2009, Moody's Investors Service downgraded YPF S.A.'s global local currency rating to Ba1 from Baa2, concluding a review for possible downgrade announced in December 2008. (YPF's Ba2 foreign currency bond rating, also under review for downgrade, was withdrawn when the rated bond issue matured in February 2009.) The rating outlook is stable. ============= B E R M U D A ============= BERNARD L.MADOFF: Insurers Reach Partial Accord in Madoff Lawsuit ----------------------------------------------------------------- Bermuda-based insurers Argus Group Holdings Ltd. and Tremont International Insurance Ltd. reached a partial settlement of a lawsuit on behalf of policyholders over the companies’ investment with Bernard Madoff, David Glovin at Bloomberg News reports, citing court records. According to the report, the lawsuit claims that the insurers are liable to policyholders with certain annuities or life insurance policies for fraud and breach of duty because the insurers invested with so-called Madoff feeder funds. The report relates that the accord said Argus International Life Bermuda Ltd. will provide low-interest loans to policyholders whose policies may lapse. The policies relied on the Madoff investments to pay premiums. The settlement, which provides for no cash payments, was reached due to the “difficulty of establishing jurisdiction over the Bermuda-based” defendants and of “establishing their liability and recovering damages,” the plaintiffs said in court papers obtained by the news agency. Bloomberg News says that the settling cases are part of a larger group of Madoff-related investor lawsuits against Tremont Group Holdings, a hedge-fund firm owned by Massachusetts Mutual Life Insurance Co. The settling cases are on behalf of Argus and Tremont Insurance policyholders whose investment was placed in various Tremont Group Holdings funds, which in turn invested with Madoff, the report notes. About 100 policyholders will benefit from the accord, the report adds. About Bernard Madoff Bernard L. Madoff Investment Securities LLC was a market maker in U.S. stocks, including all of the S&P 500 and more than 350 Nasdaq stocks. The firm moved large blocks of stock for institutional clients by splitting up orders or arranging off-exchange transactions between parties. It also performed clearing and settlement services. Clients included brokerages, banks, and other financial institutions. In addition, Madoff Securities managed assets for high-net-worth individuals, hedge funds, and other institutional investors. The firm is being liquidated in the aftermath of a fraud scandal involving founder Bernard L. Madoff. As reported by the Troubled Company Reporter on December 15, 2008, the Securities and Exchange Commission charged Mr. Madoff and his investment firm with securities fraud for a multi-billion dollar Ponzi scheme that he perpetrated on advisory clients of his firm. The estimated losses from Mr. Madoff's fraud were allegedly at least US$50 billion. Also on December 15, 2008, the Honorable Louis A. Stanton of the U.S. District Court for the Southern District of New York granted the application of the Securities Investor Protection Corporation for a decree adjudicating that the customers of BLMIS are in need of the protection afforded by the Securities Investor Protection Act of 1970. Irving H. Picard, Esq., was appointed as trustee for the liquidation of BLMIS, and Baker & Hostetler LLP was appointed as counsel. As reported by the TCR, Judge Denny Chin of the U.S. District Court for the Southern District of New York on June 29, 2009, sentenced Mr. Madoff to 150 years of life imprisonment for defrauding investors. STEWARDSHIP CREDIT: Creditors & Contributories to Meet on Sept. 25 ------------------------------------------------------------------ The creditors and contributories of Stewardship Credit Arbitrage Fund, Ltd. will hold their first meeting on September 25, 2009, at 9:30 a.m. and 10:30 a.m., respectively, to receive the provisional liquidator's report on the company's wind-up proceedings and property disposal. The company's provisional liiquidator is: Peter C.B. Mitchell PricewaterhouseCoopers Advisory Limited Dorchester House P.O. Box HM 1171, Hamilton HMEX Bermuda =========== B R A Z I L =========== BANCO NACIONAL: Gov't May Capitalize Bank to Fund Oil Exploration ----------------------------------------------------------------- The Brazilian government may pump funds into the state-owned Banco Nacional de Desenvolvimento Economico e Social SA, to be used to finance efforts to explore potentially enormous deep sea oil finds, Alastair Stewart at Dow Jones Newswires reports, citing Estado newswire. According to the report, BNDES already has a 7.6% stake in government oil company Petroleo Brasileiro (Petrobras), and has a BRL100 billion (US$52.4 billion) funds to help finance exploration. However, the report relates that the government is concerned that suppliers and other companies in the production chain risk being underfunded. The report notes that earlier this week, President Luiz Inacio Lula da Silva sent a plan to Congress that would make Petrobras the sole operator of new subsalt fields, giving it across-the- board access to what is one of the largest oil finds in recent decades. About BNDES Banco Nacional de Desenvolvimento Economico e Social SA is Brazil's national development bank. It provides financing for projects within Brazil and plays a major role in the privatization programs undertaken by the federal government. * * * Banco Nacional continues to carry a Ba2 foreign long-term bank deposit rating from Moody's Investors Service. BANCO SANTANDER: Brazil Unit Files IPO for US$200 Million --------------------------------------------------------- Banco Santander (Brasil) SA, a unit of Spain's Banco Santander SA, plans to sell as much as US$200 million of stock in an initial public offering, Fabio Alves at Bloomberg News reports. The report relates that the local unit will use the proceeds to finance the expansion of its infrastructure and boost its capital base. According to the report, the company's offering includes American depositary shares and stock in Brazil. The report recalls that Banco Santander on July 31 filed to sell units representing both ordinary and preferred shares. The report relates Chief Executive Officer Alfredo Saenz said that Santander would offer new shares equivalent to a 15% stake in the Brazilian unit. Santander Investment and Credit Suisse Group AG were hired to manage the share sale, the report adds. About Banco Santander Banco Santander Brasil SA attracts deposits and offers retail, commercial and private banking, and asset management services. The bank offers consumer credit, mortgage loans, lease financing, mutual funds, insurance, commercial credit, investment banking services, and structured finance. * * * As of September 3, 2009, the company continues to carry Moody's "Ba2" Foreign LT bank Deposits rating. BRASIL FOODS: To Transfer BRL2.55 Billion Fund to Sadia SA ---------------------------------------------------------- BRF-Brasil Foods SA -- new name for the merged Perdigao SA and Sadia SA –- will transfer the remaining BRL2.55 billion (US$1.35 billion) fund to its unit, Sadia SA, to pay down debt and strengthen Sadia SA's capital base, Elzio Barreto at Reuters reports. The report relates that the capital injection is part of a BRL3.5 billion-real plan by Brasil Foods to bolster Sadia. As reported in the Troubled Company Reporter-Latin America on July 30, 2009, Dow Jones Newswires said that Brasil Foods transferred BRL950 million (US$505 million) to its Sadia SA to be used to increase the unit's capital as part of debt restructuring. The report related that BRF-Brasil Food raised BRL5.29 billion from the sale of shares through a primary offer on the Brazilian Stock Exchange, or BMFBovespa. According to Rogerio Jelmayer at Dow Jones Newswires, the share offer was part of the merger agreement announced in May between Perdigao and Sadia. The report relates that under the terms of the accord, Sadia SA will transfer its shares to a company called HFF Participacoes, then it will migrate its shares to BRF. A TCRLA report on November 7, 2008, citing Bloomberg News, related that Sadia SA lost at least BRL545 million (US$254 million) on wrong-way currency bets. According to the report, Sadia posted its first net loss in nine years after a currency slump derailed bets that Brazil's real would continue a four-year winning streak against the dollar. The report said Sadia posted a third- quarter net loss of BRL777.4 million, after booking BRL1.21 billion in financial expenses, mostly from bad bets on currencies and other wrong-way investments, from a profit of BRL188.4 million in the year-earlier quarter. About Sadia S.A. Headquartered in Sao Paulo, Brazil, Sadia S. A. -– http://www.sadia.com–- is the largest slaughterer and distributor of poultry and pork products in Brazil, as well as the leading refrigerated and frozen protein products company. For the last twelve months ending on September 30, 2008, Sadia had net revenues of BRL10.2 billion (USD 6 billion) and EBITDA of BRL1.3 billion (USD 748 million) with 46% of revenues derived from exports to over 100 countries. * * * As of June 8, 2009, the company continues to carry Moody's LT Corp Rating at B2. The comapany also continues to carry Standard and Poor's LT Issuer Credit ratings at B. About BRF-Brasil Foods BRF-Brasil Foods SA is a food processor in Latin America. The company raises chickens to produce poultry products. Brasil foods also processes frozen pasta, soybeans, and thier derivatives, and distributes frozen vegetables. The company's core business is chilled and frozen food. The company has offices in the Middle East, Asia, and Europe. * * * As of July 14, 2009, the company continues to carry Moody's Ba1 LT Corp Family rating. The company also continues to carry Standard and Poor's BB+ LT Issuer Credit Ratings. BRASIL FOODS: To Invest BRL1 Billion in 2010 -------------------------------------------- BRF-Brasil Foods SA is planning to invest BRL1 billion (US$526 million) in its operations in 2010, Rogerio Jelmayer at Dow Jones Newswires reports, citing Company President Jose Antonio do Prado Fay. BRF-Brasil Foods SA is a food processor in Latin America. The company raises chickens to produce poultry products. Brasil foods also processes frozen pasta, soybeans, and thier derivatives, and distributes frozen vegetables. The company's core business is chilled and frozen food. The company has offices in the Middle East, Asia, and Europe. * * * As of July 14, 2009, the company continues to carry Moody's Ba1 LT Corp Family rating. The company also continues to carry Standard and Poor's BB+ LT Issuer Credit Ratings. BR MALLS: S&P Changes Outlook to Stable; Affirms 'BB-' Rating ------------------------------------------------------------- Standard & Poor's Ratings Services said that it revised its outlook on BR Malls Participacoes S.A. to stable from negative. Standard & Poor's also said that it affirmed its 'BB-' corporate credit rating and 'brA' national scale rating on the company. "The revised outlook reflects the positive effects of a recent 445 million Brazilian reais (R$) capital injection," noted Standard & Poor's credit analyst Piero Parolin. "It is also based on S&P's expectation that the company's financial profile will continue improving in 2010." The ratings on Brazil-based shopping mall company BR Malls reflect its aggressive acquisition strategy, which has resulted in a leveraged financial profile. The ratings also reflect the company's significant capital-expenditure program, which includes eight expansions and five greenfield projects to be delivered through 2013. The company faces strong competition when it seeks new shopping malls to acquire. Although cash flows from the company's existing malls are fairly stable and resilient, uncertain economic conditions do affect results from acquisitions and expansions. Partially offsetting these risks are BR Malls' leading position in the Brazilian shopping mall industry, favorable asset diversification by geography and customers, and track record of turning weak-performing properties around. The ratings also take into account BR Malls' smooth debt amortization schedule and sustained strong cash position. The stable outlook reflects the successful capital injection, which will help finance the company's aggressive expansion program and reduce requirements of new debt. It also reflects S&P's expectation that credit metrics will improve in 2010 with incremental cash flows. S&P could revise the outlook to positive if BR Malls is able to report a consistently positive trend for its credit metrics, moving toward debt to EBITDA of about 4.5x and funds from operations to total debt of 25%. S&P could revise the outlook to negative or lower the ratings if the company fails to deliver stronger cash flows through the end of 2009, such as if funds from operations to total debt is consistently lower than 10% and debt to EBITDA permanently higher than 6x. COMPANHIA SIDERURGICA: Taps Morgan Stanley & Itau for Bond Sale --------------------------------------------------------------- Cia. Siderurgica Nacional SA tapped Morgan Stanley and Banco Itau to arrange a benchmark dollar bond sale amid growing demand for Latin American corporate debt, Veronica Navarro Espinosa at Bloomberg News reports, citing an unnamed source. The report relates that the source said CSN will pitch the bond offering to investors next week, said the person. According to the report, a benchmark-size sale typically means at least US$500 million. The report, citing Fitch ratings, notes that CSN, which will use proceeds to refinance debt, may raise as much as $750 million in 10-year notes. The report says that CSN’s debt sale is part of a push by Latin America companies to tap overseas credit markets as borrowing costs decline amid speculation the global economic recession is easing. “Over the next few weeks, we’ll see more issuance” from Latin American companies, the report quoted Eduardo Suarez, an analyst at RBC Capital Markets in Toronto, as saying. “There’s appetite for Brazilian issuers,” Mr. Suarez said. About CSN Headquartered Sao Paolo, Brazil, Companhia Siderurgica Nacional S.A. (NYSE: SID) -- http://www.csn.com.br/-- produces, sells, exports and distributes steel products, like hot-dip galvanized sheets, tin mill products and tinplate. The company also runs its own iron ore, manganese, limestone and dolomite mines and has strategic investments in railroad companies and power supply projects. The group also operates in Brazil, Portugal, and the U.S. * * * As of July 1, 2009, the company continues to carry Moody's Currency LT Debt ratings at Ba1. The company also continues to carry Standard and Poor's Issuer credit ratings at BB+. COSAN SA: Upgraded to “Overweight” at HSBC Holdings Plc ------------------------------------------------------- Stephen Kirkland at Bloomberg News reports that Cosan SA Industria e Comercio was upgraded to “overweight” from “neutral” at HSBC Holdings Plc on September 2, 2009. The report relates that HSBC Holdings also raised its price estimate to US$11 from US$4.50. “We are adjusting our estimates based on very strong sugar fundamentals, recovering ethanol prices, and new HSBC foreign exchange and country risk metrics,” HSBC wrote in a research report obtained by the news agency. Headquartered in Brazil, Cosan SA Industria e Comercio -- http://www.cosan.com.br/-- is a Brazil-based company active in the research and production of sugar, ethanol and derivatives. The company cultivates harvests and processes sugarcane - the main raw material used to produce sugar and ethanol. In addition, it is engaged in the production of sustained energy from renewable sources. It operates 18 production units located in the state of Sao Paulo. The Company also operates port terminals. As of March 31, 2009, Cosan was the parent company of a number of controlled entities, such as TEAS - Terminal Exportador de Alcool de Santos SA, Cosan SA Bioenergia, Radar Propriedades Agricolas SA and Cosanpar Participacoes SA, among others. Cosan SA is a subsidiary of Bermuda-based Cosan Limited. * * * As reported in the Troubled Company July 27, 2009, Fitch Ratings has assigned 'BB-' local and foreign currency Issuer Default Ratings and a 'A-(bra)' National Scale Rating to Cosan S.A. Industria e Comercio and its subsidiary Cosan Combustiveis e Lubrificantes Ltda. Fitch has also assigned a 'BB-' rating to CCL's proposed US$300 million senior unsecured notes due 2014 issued through its wholly owned subsidiary, CCL Finance Ltd. The notes will be unconditionally and irrevocably guaranteed by CCL. The Rating Outlook for Cosan and CCL is Stable. CSN ISLANDS: S&P Assigns Senior Unsecured Debt Rating at 'BB+' -------------------------------------------------------------- Standard & Poor's Ratings Services said that it assigned its 'BB+' senior unsecured debt rating to CSN Islands XI Corp.'s forthcoming issuance of senior unsecured guaranteed notes of up to US$750 million. Brazil-based steel producer Companhia Siderurgica Nacional (CSN) (BB+/Positive/--) will irrevocably and unconditionally guarantee the notes. The ratings on the notes reflect the guarantee from CSN. The ratings on CSN, in turn, reflect exposure to typically volatile business cycles in the steel industry and the company's historically aggressive financial practices. The rating also reflects the uncertain time frame for a recovery in the steel industry, given slow demand and depressed prices in both domestic and international markets. CSN's strong cash reserves, privileged cost position and sound operating profile in steel and iron ore, favorable market shares in Brazil, and strong export capabilities partially offset these risks. CSN faced more difficult market conditions in all its business segments during the first half of 2009. S&P expects credit measures to continue weakening through 2009 because of pressures on the operating margin, but to recover gradually as the company captures the benefits of cost-cutting initiatives and market conditions gradually improve. CSN's supply chain integration and business diversification help explain the resilience of its margins compared with global and local peers'. S&P believes the company is very well positioned to take advantage of a gradual recovery in the steel and iron ore markets, and that its robust cash position provides enough financial flexibility to weather the current difficult conditions in the industry. Ratings List Companhia Siderurgica Nacional Corporate Credit Raing BB+/Positive/-- Ratings Assigned CSN Islands XI Corp. US$750 mil. floating-rate sr. notes due Sept. 30, 2019 BB+ CSN ISLANDS: Moody's Assigns 'Ba1' Rating on US$750 Mil. Notes -------------------------------------------------------------- Moody's Investors Service has assigned a Ba1 foreign currency rating to the proposed issuance of up to US$750 million in senior unsecured notes due 2019 by CSN Islands XI Corporation (Cayman Islands), to be unconditionally and irrevocably guaranteed by Companhia Siderurgica Nacional. The rating of the notes is not constrained by Brazil's foreign currency country ceiling of Baa3, currently under review for possible upgrade. The net proceeds from the proposed issuance will be used to refinance maturing debt and for general corporate purposes. Simultaneously, Moody's has assigned corporate family ratings of Ba1 on the global scale and Aa1.br on the Brazilian national scale to CSN, with a stable outlook. All existing ratings were affirmed. The outlook for all ratings is stable. Ratings assigned are: * Issuer: CSN Islands XI Corporation -- Up to US$750 million Senior Unsecured Notes Due 2019 Guaranteed by CSN: Ba1 Foreign Currency Rating * Issuer: Companhia Siderurgica Nacional -- CSN -- Corporate Family Rating: Ba1 (global scale), Aa1.br (Brazilian National Scale) Ratings affirmed are: * Issuer: CSN Islands VIII Corporation -- US$550 million Senior Unsecured Notes Due 2013 Guaranteed by CSN: Ba1 Foreign Currency Rating * Issuer: CSN Islands IX Corporation -- US$400 million Senior Unsecured Notes Due 2015 Guaranteed by CSN: Ba1 Foreign Currency Rating -- Outlook for all ratings: stable The rating of the proposed notes and the stable outlook assume that the final transaction documents will not be materially different from draft legal documentation reviewed by Moody's to date and assume that these agreements are legally valid, binding and enforceable. CSN's Ba1 rating reflects its position as a leading manufacturer of flat-rolled steel in Brazil, with a favorable product mix focused on value-added products. Historically, the company has reported a strong EBITDA margin (as defined by Moody's) in the 40% range, supported by its solid domestic market position and globally competitive production costs. CSN's operational efficiency and low costs reflect the large scale of its integrated steel mill, its own captive iron ore mine and its self-sufficiency in electricity and 75% self-sufficiency in coke. Also supporting CSN's high margins are the company's strategic location in the most industrialized region of Brazil and its proximity to high- grade iron ore reserves and port terminals, as well as its efficient logistics. While Moody's believe that the company is better-positioned than most of its global peers to face the ups and downs of the cyclical steel industry from an operational standpoint, as demonstrated by its EBITDA margin in the low 30% range during the first half of 2009 under extremely unfavorable market conditions, CSN's ratings are primarily constrained by its track record of aggressive shareholder return, low operational diversity, with the concentration of its steel production at a single site, and by the event risk from its large capex program to expand iron ore mining, cement and logistics operations. Following the sale of a 40% interest in Nacional Minerios S,.A. -- Namisa, CSN's cash position increased significantly. While part of the cash was used in the second quarter of 2009 mostly to pay BRL1.7 billion dividends and for additional BRL 0.7 billion legal deposit related to the IPI tax contingency, liquidity remained strong based on a cash position of BRL 6.1 billion as of June 30, 2009, comfortably covering short-term adjusted debt of BRL3.4 billion (including refinanced taxes and pension liabilities). Although CSN does not have committed credit facilities in place, similar to the majority of Brazilian issuers, CSN's liquidity position is supported by its funding sources with BNDES (Brazilian Development Bank) and pre-export financing based on its large amount of unencumbered exports after 2009. Moody's believes that CSN will maintain its prudent liquidity management during the ongoing investment program. Moody's note that CSN does not have financial covenants on its debt, which increases financial flexibility. Moody's expect CSN's debt maturity profile to improve following the issuance of the proposed notes. While the Ba1 global scale rating reflects the default and loss expectation of CSN on a global basis, the Aa1.br national scale rating reflects the standing of its credit quality relative to other domestic issuers. National Scale Ratings are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs in Brazil are designated by the ".br" suffix. NSRs differ from global scale ratings in that they are not globally comparable to the full universe of Moody's rated entities, but only with other rated entities within the same country. The stable outlook reflects Moody's expectation that CSN will continue to report healthy, although lower, operating margins in the coming quarters in spite of depressed prices and lowered demand for steel and iron ore globally, reflecting the high level of vertical integration of its operations. While Moody's anticipate a deterioration in leverage metrics by virtue of weakened cash flow, Moody's expect CSN will manage to maintain Consolidated Net Debt to EBITDA below 2.5x (considering a minimum readily available liquidity cushion of US$1.5 billion) and robust liquidity position. CSN's ratings could be upgraded if the company maintains its high margins relative to the industry during the current global economic downturn, a strong liquidity position and moderate leverage during the execution of its large capex program, with Net Debt (considering a minimum readily available liquidity cushion of US$1.5 billion) to EBITDA below 1.8x. Sustainable Cash From Operations less Dividends to Net Debt of above 25% would also be necessary for an upgrade. Conversely, the rating or outlook could be downgraded if CSN's operating margins and net profits weakened significantly and dividends remain high, resulting in CFO less Dividends to Net Debt consistently below 15% or in the case of a substantive deterioration of its liquidity position, with an inability to cover short term debt with readily available liquidity and free cash flow. Downward pressure could also affect the ratings or outlook if Consolidated Net Debt (considering a minimum readily available liquidity cushion of US$1.5 billion) to EBITDA remains above 2.5x for an extended time period. A significant increase in consolidated secured debt or in debt benefiting from claim priority could negatively affect the rating or outlook of CSN's senior unsecured debt. Moody's last rating action on CSN occurred on December 18, 2008, when Moody's changed the rating outlook for its backed notes to stable from positive reflecting the negative outlook for the global steel industry, and affirmed the Ba1 senior unsecured long term debt ratings of the notes. Companhia Siderurgica Nacional is a vertically integrated, low- cost producer of flat-rolled steel, with an annual capacity of 5.6 million tons of crude steel and 5.1 million tons of rolled products. CSN also produces and sells iron ore and cement. In the twelve months ended on June 30, 2009, CSN recorded consolidated net revenues of BRL12.3 billion (US$5.9 billion converted using the average exchange rate). ENERGISA SA: Studies Local Share Issue -------------------------------------- Energisa SA said it is studying plans to issue shares, Alastair Stewart at Dow Jones Newswires reports. According to the report, the company said that the shares would be offered in the form of units, share packages formed by both common and preferred shares, but the operation must first be approved by the company's board and shareholders. The report relates Energisa added that Brazilian stock market regulator CVM ruled the company does not need to offer the shares publicly or provide a prospectus for the offer. Energisa SA, based in Cataguases, Minas Gerais, is a holding company that controls five electricity distribution utilities in four Brazilian states (Paraiba, Sergipe, Minas Gerais and Rio de Janeiro), serving approximately 2.2 million consumers. In 2008, Energisa sold 6,614 GWh, equivalent to approximately 1.5% of all electricity distributed in Brazil. Energisa is listed on the Brazilian stock market and is controlled by the Botelho family. * * * As reported in the Troubled Company Reporter-Latin America on March 30, 2009, Moody's confirmed the Ba3 local currency corporate family rating for Energisa S.A. and the Ba3 rating for the US$250 million unsecured notes units jointly but not severally issued by Energisa Sergipe - Distribuidora de Energia S.A. and Energisa Paraiba –- Distribuidora de Energia S.A. due 2013 and guaranteed by Energisa. At the same time, Moody's confirmed Energisa's A3.br corporate family rating on the Brazilian national scale. GOL LINHAS: Slumping Oil Prices May Cut Company Costs ----------------------------------------------------- Heloiza Canassa at Bloomberg News reports that prospects have emerged that slumping oil prices will help reduce the costs of GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A. “Investors see oil falling, and that’s a relevant part of the company’s costs, and see that shares have fallen a lot and buy them back,” the report quoted Kelly Trentin, an analyst with SLW Corretora de Valores e Cambio Ltda in Sao Paulo, as saying. According to the report, oil tumbled as global stocks dropped and the dollar strengthened against the euro, reducing the appeal of commodities to investors. The report relates that Alexander Kazan, vice president for Latin America equities at Auerbach Grayson & Co., said that the airline “is leveraged to consumer demand and it’s a low cost airline that will benefit from growth of the middle class.” About GOL Linhas Based in Sao Paulo, Brazil, GOL Intelligent Airlines aka GOL Linhas Areas Inteligentes S.A. -- http://www.voegol.com.br/-- through its subsidiary, GOL Transportes Aereos S.A., provides airline services in Brazil, Argentina, Bolivia, Uruguay, and Paraguay. The company's services include passenger, cargo, and charter services. As of March 20, 2006, Gol Linhas provided 440 daily flights to 49 destinations and operated a fleet of 45 Boeing 737 aircraft. The company was founded in 2001. * * * As reported in the Troubled Company Reporter-Latin America on August 31, 2009, Fitch Ratings affirmed Gol Linhas Aereas Inteligentes S.A.'s ratings: -- Foreign and Local Currency long-term Issuer Default Ratings at 'B+'; -- Long-term National Rating at 'BBB(bra)'; -- US$200 million perpetual notes at 'B/RR5'; -- US$200 million senior notes due 2017 at 'B/RR5'. MULTIPLAN EMPREENDIMENTOS: S&P Raises Corp. Credit Rating to 'BB+' ------------------------------------------------------------------ Standard & Poor's Ratings Services said that it raised its long- term corporate credit rating on Multiplan Empreendimentos Imobiliários S.A. to 'BB+' from 'BB' and S&P's local-scale long- term corporate credit rating to 'brAA' from 'brAA-'. S&P also raised the rating on Multiplan's Brazilian reais (R$) 100 million debenture issuance due in 2011 to 'brAA' from 'brAA-'. The outlook is table. The rating action reflects Multiplan's consistent results and conservative financial profile. Stable cash flows reflect the resilience of the shopping mall industry in Brazil, which has proven strong during the economic slow-down in the country. Multiplan's financial discipline, evidenced by its sound credit metrics during the past several quarters, also contributes to the upgrade. S&P expects the company's investments in new shopping malls to be financed mainly with internal cash generation. S&P does not fully incorporate the effects of the announced follow-on equity issuance, but assume that additional liquidity will cover potential cash shortfalls related to the company's expansion strategy, either greenfield projects or acquisitions, thus reducing the requirement for incremental debt leverage. "The ratings on Multiplan reflect the company's significant capital requirements to sustain growth plans, greenfield projects, investments in real estate, and opportunistic acquisitions," said Standard & Poor's credit analyst Piero Parolin. It also considers the risks associated with those projects, with some uncertainties regarding vacancy levels and resultant profitability. Multiplan's favorable position in the shopping mall industry, diversified client base, strong brand recognition, and stable margins partly offset the negative factors. The ratings also consider Multiplan's prudent financial policy, characterized by strong and stable cash flows and fair liquidity. S&P does not expect the economic slowdown in Brazil to affect Multiplan's performance significantly because S&P understand that rent delinquency or vacancy will not deteriorate in the short term. Multiplan's EBITDA margins reached 59.9% in the 12 months ended June 30, 2009, improving from 55.3% in the same period of the previous year as a result of real estate operations retraction and higher core EBITDA generation (which considers only the mall operations). Because it recently raised new debt and cash flows remained stable, Multiplan reported slightly weaker metrics, with funds from operations-to-total debt ratio of 60.7% and total debt-to- EBITDA ratio of 1.5x in June 2009, compared with 65% and 1.2x, respectively, in June 2008. Nevertheless, S&P expects improvements in those metrics from 2010 on, as new projects start to generate cash flows. The stable outlook reflects S&P's expectation that Multiplan will maintain investments in greenfield projects and expansions funded mainly by internal cash generation, resulting in no significant increase in debt leverage. S&P could change the outlook to negative if the company's growth plans start hurting credit metrics in the next years, or if cash flow weakens significantly due to market conditions, resulting in an FFO-to-total debt ratio consistently in the 40% area or lower, and total debt-to-EBITDA ratio of more than 3.0x. A positive change of the outlook would depend on Multiplan's successfully completing its growth projects in the medium term, while sustaining stronger cash-flow protection measures such as a debt-to-EBITDA ratio lower than 1.0x and FFO- to-total debt ratio higher than 80%, adequate liquidity, and a smooth debt schedule. SADIA SA: To Get Additional BRL2.55 Billion From Brasil Foods ------------------------------------------------------------- BRF-Brasil Foods SA -- new name for the merged Perdigao SA and Sadia SA –- will transfer the remaining BRL2.55 billion (US$1.35 billion) fund to its unit, Sadia SA, to pay down debt and strengthen Sadia SA's capital base, Elzio Barreto at Reuters reports. The report relates that the capital injection is part of a BRL3.5 billion-real plan by Brasil Foods to bolster Sadia. As reported in the Troubled Company Reporter-Latin America on July 30, 2009, Dow Jones Newswires said that Brasil Foods transferred BRL950 million (US$505 million) to its Sadia SA to be used to increase the unit's capital as part of debt restructuring. The report related that BRF-Brasil Food raised BRL5.29 billion from the sale of shares through a primary offer on the Brazilian Stock Exchange, or BMFBovespa. According to Rogerio Jelmayer at Dow Jones Newswires, the share offer was part of the merger agreement announced in May between Perdigao and Sadia. The report relates that under the terms of the accord, Sadia SA will transfer its shares to a company called HFF Participacoes, then it will migrate its shares to BRF. A TCRLA report on November 7, 2008, citing Bloomberg News, related that Sadia SA lost at least BRL545 million (US$254 million) on wrong-way currency bets. According to the report, Sadia posted its first net loss in nine years after a currency slump derailed bets that Brazil's real would continue a four-year winning streak against the dollar. The report said Sadia posted a third- quarter net loss of BRL777.4 million, after booking BRL1.21 billion in financial expenses, mostly from bad bets on currencies and other wrong-way investments, from a profit of BRL188.4 million in the year-earlier quarter. About Sadia S.A. Headquartered in Sao Paulo, Brazil, Sadia S. A. -– http://www.sadia.com–- is the largest slaughterer and distributor of poultry and pork products in Brazil, as well as the leading refrigerated and frozen protein products company. For the last twelve months ending on September 30, 2008, Sadia had net revenues of BRL10.2 billion (USD 6 billion) and EBITDA of BRL1.3 billion (USD 748 million) with 46% of revenues derived from exports to over 100 countries. * * * As of June 8, 2009, the company continues to carry Moody's LT Corp Rating at B2. The comapany also continues to carry Standard and Poor's LT Issuer Credit ratings at B. About BRF-Brasil Foods BRF-Brasil Foods SA is a food processor in Latin America. The company raises chickens to produce poultry products. Brasil foods also processes frozen pasta, soybeans, and thier derivatives, and distributes frozen vegetables. The company's core business is chilled and frozen food. The company has offices in the Middle East, Asia, and Europe. * * * As of July 14, 2009, the company continues to carry Moody's Ba1 LT Corp Family rating. The company also continues to carry Standard and Poor's BB+ LT Issuer Credit Ratings. SADIA SA: Board Fires CEO; Names Cardoso de Lucena as Replacement ----------------------------------------------------------------- Sadia SA's board of directors fired the company's CEO, Gilberto Tomazoni, Rogerio Jelmayer at Dow Jones Newswires reports, citing a company statement. According to the report, Mr. Tomazoni, who worked in Sadia SA for 27 years, will be replaced by Jose Julio Cardoso de Lucena. The report relates that the company did not reveal the reason for the replacement. Headquartered in Sao Paulo, Brazil, Sadia S. A. -- http://www.sadia.com-- is the largest slaughterer and distributor of poultry and pork products in Brazil, as well as the leading refrigerated and frozen protein products company. For the last twelve months ending on September 30, 2008, Sadia had net revenues of BRL10.2 billion (USD 6 billion) and EBITDA of BRL1.3 billion (USD 748 million) with 46% of revenues derived from exports to over 100 countries. * * * As of June 8, 2009, the company continues to carry Moody's LT Corp Rating at B2. The comapany also continues to carry Standard and Poor's LT Issuer Credit ratings at B. TAM SA: Files Amended 2007 Annual Report ---------------------------------------- TAM SA has filed an amended annual report on Form 20-F for the year ended December 31, 2007 with the U.S. Securities and Exchange Commission. The 2007 Amended Annual Report amends the annual report on Form 20-F for the year ended December 31, 2007 that was originally filed with the SEC on June 25, 2008 primarily to restate cash flow statement filed therewith, to eliminate the effects of a non-cash item relating to a transfer of spare parts between property, plant and equipment and inventories that was incorrectly reported on its cash flow statement. The eliminated non-cash item did not impact the Company's total "Change in cash and cash equivalents," which remains at R$153,899,000 under Brazilian GAAP and R$167,031,000 under US GAAP. The restatement is limited to the company's cash flow statement and does not affect any other reported amounts or disclosures in its consolidated financial statements for the year ended December 31, 2007. TAM SA's consolidated net income for the year ended December 31, 2007 remains unchanged under Brazilian GAAP and US GAAP. However, the company nonetheless concluded that there was a material error that impacted its cash flow statement under Brazilian Generally Accepted Accounting Practices and United States Generally Accepted Accounting Practices for 2007. The eliminated non-cash item represented R$83,951 thousand under both Brazilian GAAP and US GAAP. The company has also included a restated Management's Annual Report in Internal Control Over Financial Reporting in the 2007 Amended Annual Report relating to a material weakness in connection with the restatement, and it has included a note (2(s)) to its consolidated financial statements that form part of the 2007 Amended Annual Report that also further discusses the correction. In addition to the restatements, TAM SA also enhanced other disclosures, as indicated in the Explanatory Note to the Amended 2007 Annual Report. TAM SA also refers investors to its annual report for the year ended December 31, 2008 on Form 20-F that was filed with the SEC on June 30, 2009 (which for the first time contained financial statements prepared in accordance with international financial reporting standards as issued by the International Accounting Standards Board). About TAM SA Based in Sao Paulo, Brazil, TAM S.A. -- http://www.tam.com.br/-- has business agreements with the regional airlines Pantanal, Passaredo, Total and Trip. As of Jan. 14, the daily flight on the Corumba -- Campo Grande route in Mato Grosso do Sul began to be operated by a partnership with Trip. With the expansion of the agreement with NHT, TAM will now be serving 82 destinations in Brazil, 45 of which with its own flights. In addition, the company is strengthening its presence in Rio Grande do Sul and Santa Catarina. * * * As of June 17, 2009, the company continues to carry Fitch Ratings' 'BB' Foreign and Local Currency Issuer Default Ratings. The company also continues to carry Moody's B1 LT Corp Family Rating and Senior Unsecured Debt Ratings. USINAS SIDERURGICAS: Hikes Flat Steel Prices by 10% to 12% ---------------------------------------------------------- Usinas Siderurgicas do Minas Gerais S.A. raised its flat steel prices by between 10% and 12% recently, John Kolodziejski at Dow Jones Newswires reports, citing Estado news. The report relates that Estado got its information from Brazil's second-largest independent steel distributor, Frefer. According to the report, citing Estado, Usiminas also increased thick steel plate prices by 10%. The report notes that owing to the economic crisis, this product had been sold at a discount of 30%. The report notes that Frefer added it expected Brazil's other steelmakers, ArcelorMittal and Gerdau SA to follow suit in raising prices. Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas do Minas Gerais S.A. aka Usiminas -- http://www.usiminas.com.br-- is principally engaged in the steel industry. The company has a production capacity of 4.7 million tons of crude steel per annum. The company produces non-coated steel (including slabs, heavy plates, hot- and cold-rolled sheets and coils) and galvanized sheets and coils. The company provides its products to the automotive, piping, building and electrical/electronic and agricultural and road machinery industries. In addition to its core business operations, it is also involved in the commercialization, import and export of raw materials, steel products and by-products; the provision of project development and research services; the provision of personnel training services, and the provision of mining, transportation, construction and technical assistance services. The company's products are sold in Brazil, as well as exported to other Latin American countries, the United States, China and South Korea, among others. * * * As of June 19, 2009, the company continues to carry Moody's Ba1 Subordinate Debt rating. * BRAZIL: Minister Suggests Raising Import Tariffs on US Products ----------------------------------------------------------------- Andre Soliani Costa and Carlos Caminada at Bloomberg News report that Brazil’s Agriculture Minister Reinhold Stephanes said the country should raise import tariffs on some U.S. products to retaliate against aid to American cotton producers. According to the report, Mr. Stephanes said Brazil should use revenue from a tariff increase on U.S. products to fund agricultural research. The retaliation measures should seek to bring benefits to Brazilian farmers, Mr. Stephanes added. “It’s not just a political victory we’re seeking,” the report quoted Mr. Stephanes as saying. “We’re seeking a pragmatic victory,” Mr. Stephanes said. Bloomberg News says that the World Trade Organization allowed Brazil to impose US$294.7 million of sanctions against U.S. goods to compensate for subsidies paid to American cotton farmers in a ruling yesterday. The report notes that the sanctions are the second-largest ever permitted by the Geneva-base trade arbitrator. * * * 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 ========================== APHELION GENERAL: Shareholders to Hear Wind-Up Report Today ----------------------------------------------------------- The shareholders of Aphelion General Partner Inc. will receive today, September 4, 2009, at 8:45 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands CITRON INVESTMENTS: Shareholders' Final Meeting Set for Today ------------------------------------------------------------- The shareholders of Citron Investments Limited will hold their final meeting today, September 4, 2009, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands COREVEST NEW: Shareholder Receives Wind-Up Report ------------------------------------------------- The sole shareholder of Corevest New Frontier Partners (Intl.) Limited received on September 1, 2009, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Jonathan McLean Telephone: (345) 815 1805 Facsimile: (345) 949 1986 DMS FIXED: Shareholder Receives Wind-Up Report ---------------------------------------------- The shareholder of DMS Fixed Income Micro RV Master Fund, Ltd. received on September 1, 2009, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Jonathan McLean Telephone: (345) 815 1805 Facsimile: (345) 949 1986 DMS FIXED: Shareholder Receives Wind-Up Report ---------------------------------------------- The shareholder of DMS Fixed Income Micro RV Fund, Ltd. received on September 1, 2009, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Jonathan McLean Telephone: (345) 815 1805 Facsimile: (345) 949 1986 FAYE CAPITAL: Shareholders' Final Meeting Set for Today ------------------------------------------------------- The shareholders of Faye Capital (Cayman) Inc. will hold their final meeting today, September 4, 2009, at 9:45 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands J.P. MORGAN: Members Receive Wind-Up Report ------------------------------------------- The members of J.P. Morgan Tactical Trading Fund Ltd. met on September 3, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Rose Burke c/o Maples and Calder, Attorneys-at-law PO Box 309, Ugland House Grand Cayman KY1-1104, Cayman Islands KINSALE INVESTMENTS: Shareholders' Final Meeting Set for Today -------------------------------------------------------------- The shareholders of Kinsale Investments Limited will hold their final meeting today, September 4, 2009, at 10:15 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands MPII SPECIAL: Shareholders' Final Meeting Set for Today ------------------------------------------------------- The shareholders of MPII Special Cayman Ltd will hold their final meeting today, September 4, 2009, at 10:15 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands TORNESS LIMITED: Members Receive Wind-Up Report ----------------------------------------------- The members of Torness Limited met on September 3, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Royhaven Secretaries Limited Laura Chisholm Telephone: 945-4777 Facsimile: 945-4799 c/o PO Box 707, Grand Cayman KY1-1107 Telephone: 945-4777 Facsimile: 945-4799 URALSIB PRIVATE: Members Receive Wind-Up Report ----------------------------------------------- The members of Uralsib Private Equity Fund Ltd. met on September 3, 2009, and received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd c/o Bernadette Bailey-Lewis dms Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344, Grand Cayman KY1-1108 Telephone: (345) 946 7665 Facsimile: (345) 946 7666 VELOS BALKAN: Shareholders to Hear Wind-Up Report on September 4 ---------------------------------------------------------------- The shareholders of Velos Balkan Fund will receive today, September 4, 2009, at 9:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands WESTPEAK EUROPE: Shareholders' Final Meeting Set for Today ---------------------------------------------------------- The shareholders of Westpeak Europe Market Neutral Fund, Ltd. will hold their final meeting today, September 4, 2009, at 10:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands WHITNEY JAPAN: Shareholders to Hear Wind-Up Report on September 4 ----------------------------------------------------------------- The shareholders of Whitney Japan Strategic Fund, Ltd. will receive today, September 4, 2009, at 9:15 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Corporate Services Limited Walker House, 87 Mary Street, George Town Grand Cayman KY1-9002, Cayman Islands ZEST INVESTMENTS: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Zest Investments V received on September 3, 2009, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ellen J. Christian Piccadilly Cayman Limited c/o BNP Paribas Bank & Trust Cayman Limited PO Box 10632, 3rd Floor Royal Bank House Shedden Road, George Town Grand Cayman KY1-1006, Cayman Islands Telephone: 345 945 9208 Fax: 345 945 9210 ZEST INVESTMENTS: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Zest Investments IV received on September 3, 2009, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ellen J. Christian Piccadilly Cayman Limited c/o BNP Paribas Bank & Trust Cayman Limited PO Box 10632, 3rd Floor Royal Bank House Shedden Road, George Town Grand Cayman KY1-1006, Cayman Islands Telephone: 345 945 9208 Fax: 345 945 9210 =============== C O L O M B I A =============== ECOPETROL SA: Offers US$1.5 Billion 2019 Debt Swap -------------------------------------------------- Ecopetrol S.A. disclosed an offer to exchange registered 7.625% Notes due 2019 for up to U.S.$1,500,000,000 aggregate principal amount of its 7.625% Notes due 2019, upon the terms and subject to the conditions described in the prospectus dated September 3, 2009. The Exchange Offer is being made in order to satisfy certain of the Company's obligations under the Registration Rights Agreements referred to in the Prospectus. New Notes that have CUSIP Nos. of ISIN Nos. of been registered under Old Notes New Notes Old Notes the Securities Act 279158AA7 US279158AA73 U.S.$1.5BB U.S$1.5BB (Rule 144A) (Rule 144A) P3661PAA9 USP3661PAA95 7.625% Notes 7.625% Notes (Reg. S) (Reg. S) due 2019 due 2019 Notes must be tendered in minimum denominations of US$1,000 or integral multiples of U.S.$1,000 in excess thereof. The exchange offer commences on September 3, 2009, and expires at noon, New York City time, on October 2, 2009, unless extended by the company. Tenders of Old Notes may be withdrawn at any time prior to the scheduled expiration date of the Exchange Offer. The Company will not receive any proceeds from the Exchange Offer. The terms of the New Notes to be issued are identical to the Old Notes, except for the transfer restrictions and registration rights relating to the Old Notes. The company will make an application to list the New Notes on the New York Stock Exchange. The Bank of New York Mellon is the exchange agent. There is no letter of transmittal for the Tender Offer. All tendered Old Notes and other related documents should be directed to the exchange agent, by book-entry transfer as detailed under "The Exchange Offer-Procedures for Tendering Old Notes" in the Prospectus. Questions, requests for assistance and requests for copies of the Prospectus should be addressed to the exchange agent: International Corporate Trust 101 Barclay Street, Floor 4 East, New York, New York 10286, 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. 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 in the Troubled Company Reporter-Latin America on July 15, 2009, Fitch Ratings assigned a 'BB+' rating to Ecopetrol S.A.'s proposed issuance of at least US$1 billion senior unsecured notes due 2019. Proceeds will be used for investments and general corporate purposes. ============= E C U A D O R ============= TELEAMAZONAS: Ecuador Backs Off Closing Network Over Broadcast -------------------------------------------------------------- The Ecuadorian government is backtracking on threats to close television network Teleamazonas for airing a taped conversation between President Rafael Correa and a legislator, The Associated Press reports. The report relates that Communications Secretary Fernando Alvarado said Teleamazonas' broadcast was "irresponsible," but added that it was a minor infraction meriting a fine at worst. According to the report, Teleamazonas News Director Carlos Jijon says the network didn't violate any laws because President Correa and the assemblyman were discussing public affairs. As reported in the Troubled Company Reporter-Latin America on August 31, 2009, The Associated Press reports that President Correa is threatening to close Teleamazonas, for airing a tape of a conversation between him and a member of the assembly that drafted a new constitution last year, on grounds that Teleamazonas violated regulations against taping private conversations. According to the report, President Correa warned that spying on the president "is a crime against state security." Teleamazonas, the report noted, has been cited three times for broadcast violations and risks suspension if cited again by the government. * * * As reported by the Troubled Company Reporter-Latin America on December 17, 2008, Fitch Ratings downgraded Ecuador's long-term foreign currency Issuer Default Rating (IDR) to 'RD' from 'CCC' following the expiration of the grace period for the coupon payment on the 2012 global bonds that was due on Nov. 15 and the government's announcement that it will selectively default on all global bonds. The short-term foreign currency rating was downgraded to 'D' from 'C'. The country ceiling remains at 'B-'. * ECUADOR: Won't Close TV Network on Broadcast Reasons ------------------------------------------------------ The Ecuadorian government is backtracking on threats to close television network Teleamazonas for airing a taped conversation between President Rafael Correa and a legislator, The Associated Press reports. The report relates that Communications Secretary Fernando Alvarado said Teleamazonas' broadcast was "irresponsible," but added that it was a minor infraction meriting a fine at worst. According to the report, Teleamazonas News Director Carlos Jijon says the network didn't violate any laws because President Correa and the assemblyman were discussing public affairs. As reported in the Troubled Company Reporter-Latin America on August 31, 2009, The Associated Press reports that President Correa is threatening to close Teleamazonas, for airing a tape of a conversation between him and a member of the assembly that drafted a new constitution last year, on grounds that Teleamazonas violated regulations against taping private conversations. According to the report, President Correa warned that spying on the president "is a crime against state security." Teleamazonas, the report noted, has been cited three times for broadcast violations and risks suspension if cited again by the government. * * * As reported by the Troubled Company Reporter-Latin America on December 17, 2008, Fitch Ratings downgraded Ecuador's long-term foreign currency Issuer Default Rating (IDR) to 'RD' from 'CCC' following the expiration of the grace period for the coupon payment on the 2012 global bonds that was due on Nov. 15 and the government's announcement that it will selectively default on all global bonds. The short-term foreign currency rating was downgraded to 'D' from 'C'. The country ceiling remains at 'B-'. ==================== E L S A L V A D O R ==================== * EL SALVADOR: Government and ECLAC Sign Cooperation Agreement -------------------------------------------------------------- Mauricio Funes, President of El Salvador, and Alicia Barcena, the Executive Secretary of the Economic Commission for Latin America and the Caribbean, signed a cooperation agreement in San Salvador for institution-building in that country. ECLAC and the Government of El Salvador agreed to cooperate in research, training and technical assistance with the aim of strengthening institutions and designing public policies for development. The agreement encompasses several areas; among them, macroeconomic analysis and prospectives, policies to address the global economic crisis, statistics systems, climate change and fighting poverty and inequality. In her visit to El Salvador, Ms. Barcena also participated in the conference Public Policies and the Global Crisis, organized by ECLAC, the European Commission, the Secretariat for Central American Economic Integration (SIECA) and the Government of El Salvador. During the event, representatives and experts from several Latin American and European nations analyzed macroeconomic policies and their role in buffering the economies of the region from external turbulence. In her presentation, Mr. Barcena stated that the current world economic crisis marks an end to a model of development and opens new avenues for debating economic, social and environmental issues. Mr. Barcena stressed that the State should once again play a key role in leading development strategies, and called on countries to avoid isolation and protectionism, and foment multilateralism and responsibility. ============= J A M A I C A ============= CABLE & WIRELESS: LIME Teams Up With Claro to Cut Call Rates ------------------------------------------------------------ Lime (formerly Cable & Wireless Jamaica), a unit of Cable & Wireless plc, will team up with Claro Jamaica to cut the rates for its mobile customers to call the Claro network, RadioJamaica reports. The report relates the company move is an “obvious” strategy against its competitor Digicel Limited. According to the report, LIME's postpaid customers will pay JM$7 per minute instead of JM$12, a reduction of about 42%; while LIME's prepaid customers will pay JM$8 per minute to call Claro Jamaica down from either JM$10 per minute or JM$12 depending on their calling plan. Similarly, the report relates, Claro's customers now pay $7 per minute to call the LIME network. The report notes that Digicel still charges its customers up to JM$17.70 per minute to call Claro or LIME. RadioJamaica says LIME and Claro Jamaica have joined forces as the battle for control of the lucrative mobile phone market heats up. As reported in the Troubled Company Reporter-Latin America on July 24, 2009, The Jamaica Gleaner said LIME have struck a deal to share cell tower sites with Claro Jamaica; with both companies declaring it "landmark" agreement and a win for the environment. According to the report, LIME and Claro Jamaica's joint release said that the long-term contract requires each company to provide a matching number of cell towers across the island, which will increase the overall coverage footprint of both mobile providers. 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. * * * According to Bloomberg data, 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 continues to Standard & Poor's "BB-"long-term foreign and local issuer credit ratings and "B"short-term foreign and local issuer credit ratings. DIGICEL GROUP: Pays US$1.2 Million for Broadband License -------------------------------------------------------- Digicel Jamaicam, a unit of Digicel Group, unveiled details of its upcoming Digicel Broadband service which will deliver wireless broadband internet services at never before seen speeds to the Jamaican population. Digicel has secured a license in the 2.5Ghz spectrum for the deployment of wireless broadband services. With it, Digicel will roll out 4G WiMAX services offering true multi megabit per second personal wireless broadband with speeds significantly faster than current 3G offerings. Set to launch in second quarter of 2010, Digicel Broadband will, on day one, cover 60% of the population with coverage in all 14 parishes -- with further roll out continuing across Jamaica driven by customer demand. Network roll out commences this month (September). Digicel paid US$1.2 million for its license and will invest a total of US$22.7 million in the first year of the project. Creating 60 new jobs, Digicel Broadband will have dedicated technical, customer care and sales and marketing resources. Mark Linehan, CEO of Digicel Jamaica, said: "We're going to shake things up. Only eight years ago, Digicel entered the mobile market in Jamaica and turned it on its head. Today, we have two million customers connected on Jamaica's Bigger, Better network benefiting from the best service and the best value available." He continues: "We want to do to broadband what we did to mobile in Jamaica. Customers will be able to experience the multiple benefits of 4G technology in terms of flexibility, affordability, coverage, bandwidth and security. "We have had phenomenal demand for our personal WiMAX services in the Cayman Islands -- and have had huge success with our corporate fixed WiMAX solution here in Jamaica. Digicel is bringing 4G to Jamaica and it is going to be fantastic." About Digicel Group Digicel Group -- http://www.digicelgroup.com-- is renowned for competitive rates, unbeatable coverage, superior customer care, a wide variety of products and services and state-of-the-art handsets. By offering innovative wireless services and community support, Digicel has become a leading brand across its 31 markets worldwide. Digicel is incorporated in Bermuda and now has operations in 31 markets worldwide. Its Caribbean and Central American markets comprise Anguilla, Antigua & Barbuda, Aruba, Barbados, Bermuda, Bonaire, the British Virgin Islands, the Cayman Islands, Curacao, Dominica, El Salvador, French Guiana, Grenada, Guadeloupe, Guyana, Haiti, Honduras, Jamaica, Martinique, Panama, St Kitts & Nevis, St. Lucia, St. Vincent & the Grenadines, Suriname, Trinidad & Tobago and Turks & Caicos. The Caribbean company also has coverage in St. Martin and St. Barths. Digicel Pacific comprises Fiji, Papua New Guinea, Samoa, Tonga and Vanuatu. * * * As of June 25, the company continues to carry these low ratings from Moody's: -- LT Corp Family Rating at B2 -- Senior Undecured Debt Rating at Caa1 -- probability of Default at B2 IBEROSTAR HOTEL: Management in Talks with Union on Job Cuts ----------------------------------------------------------- The management of the Iberostar Rose Hall Beach Hotel in Montego Bay, St. James and representatives of the University and Allied Workers Union held a meeting to discuss the planned shutdown of one of the properties, RadioJamaica reports. "We have been contending that the even though the hotel is closing, the workers shouldn't be made redundant, they can be laid off or transferred to one of the other properties that Iberostar will continue to operate. During the course of the meeting, we will continue to argue our point and we're hoping that we'll have an amicable solution at the end day, the report quoted Clifton Grant, UAWU first Vice President, as saying. "Currently, the whole issue of issuing termination letters has been put on hold pending the outcome of the meeting," Mr. Grant added. As reported in the Troubled Company Reporter-Latin America on September 1, 2009, RadioJamaica said that the 300 workers affected by Iberostar Rose Hall Beach Hotel's closure will have more details on the planned closure soon. The report related that during a meeting at the Ministry of Labour, the University and Allied Workers Union (UAWU), which represents the workers and the hotel's management agreed to resume discussions at the local level. According to the report, the Hotel, which was opened in 2007, one of three hotels on the Spanish chain's property in Montego Bay, was closed on September 1, due to low occupancy. The report noted that the union was also told that the last guest will leave the hotel on August 31 and no further bookings have been made in preparation for the closure. About IBEROSTAR Hotels & Resorts IBEROSTAR Hotels & Resorts -- http://www.iberostar.com-- is the hotel division of Iberostar Group, is one of the most renowned Spanish hotel chains at the global level. Founded by the Fluxa family in Palma de Mallorca (Balearic Islands, Spain) in 1986, it has come to offer top-level accommodation in major travel destinations around the world. As a brand name, IBEROSTAR is synonymous with quality in the fifteen countries where it operates, providing outstanding service and personal assistance to ensure full guest satisfaction. With a star as its symbol, the chain has managed to win over customers with its philosophy and values, and its efficient, professional staff. JPSCO: Recovers JM$1 Billion in Stolen Electricity in Three Years ----------------------------------------------------------------- The Jamaica Public Service Company is reporting that it has recovered more than JM$1 billion in stolen electricity over the past three years but it still need more effort to reduce the rate of theft, RadioJamaica reports. The report relates that the power company's latest annual report showed an increase in revenues recovered from electricity theft. According to the report, in 2006 the figure stood at JM$200 million, it increased to JM$494 million in 2007 and went up to JM$750 million last year. The report notes that seventy four thousand throw-ups were removed during the three years while 45,000 customer accounts were audited. However, the report says, Despite JPSCO's best efforts the problem of non-technical losses has become endemic and pervasive with deep rural and inner city communities as well as well-known businesses being the main culprits. The report notes that audits have detected anomalies with the power supply across all customer and socio-economic sectors. RadioJamaica adds that JPSCO said the situation has been exacerbated by the significant increase in the cost of electricity in the last three years, coupled with high inflation, unemployment and generally worsening economic conditions. About JPSCO Headquartered in Kingston, Jamaica -- https://www.jpsco.com -- Jamaica Public Service Company Limited is an integrated electric utility company and the sole distributor of electricity in Jamaica. The company is engaged in the generation, transmission and distribution of electricity, and also purchases power from five Independent Power Producers. Japanese-based Marubeni Corporation owns 80 percent of the company. The Government of Jamaica and a small group of minority shareholders own the remaining shares. JPS currently has roughly 582,000 customers who are served by a workforce of over 1,600 employees. The Company owns and operates 28 generating plants, 54 substations, and roughly 14,000 kilometers of distribution and transmission lines. * * * As reported in the Troubled Company Reporter-Latin America on March 9, 2009, Radio Jamaica said JPSCO may shutdown its operations if the company fails to settle a long-standing dispute over outstanding payments to employees. The same report said employees unions contended the payments are owed for overtime work and redundancy adjustments from 2001 to 2007, which amounts to about JM$600 million. SUPER PLUS: Sells Pavillion Plaza Outlet to Hi-Lo Supermarket ------------------------------------------------------------- The Wayne Chen-led SuperPlus supermarket chain sold its recently closed Pavillion Plaza outlet in Kingston to Hi-Lo Supermarket, RadioJamaica reports. The report relates that Mr. Chen confirmed the transaction but declined to disclose the sale price. As reported in the Troubled Company Reporter-Latin America on June 29, 2009, RadioJamaica said that the Super Plus food chain plans to close five additional stores, increasing the total number of ceased operations to 13, with the Spanish Town branch as among those that will be affected in the latest phase of the down sizing. "We are closing our Spanish Town location as part of our restructuring operations. We have closed the Trafalgar Road New Kingston branch and the Liguanea Branch and we will also close four other branches in 30 days making a total of 13 stores closed after the restructuring is over," the report quoted SuperPlus Chairman Wayne Chen as saying. The supermarket chain is further restructuring its operations in order to reduce its debts, he added. According to the report, RadioJamaica said Super Plus closed its branches in Liguanea, St. Andrew, New Kingston, and Oasis Centre in Spanish Town, St. Catherine; and its head office at Beverly Vale has reportedly been sold as the company seeks to rationalize its operations, closing non- performing stores while at the same time trimming waste. About Super Plus Super Plus is one of Jamaica's largest food chains. =========== M E X I C O =========== AXTEL SAB: Moody's Affirms Corporate Family Rating at 'Ba2' ----------------------------------------------------------- Moody's Investors Service affirmed Axtel, S.A.B. de C.V.'s Ba2 corporate family rating and revised the rating outlook to negative from stable. The outlook change was based on business and competitive challenges that have been placing, and are expected to continue to place pressure on the company's operating results. These issues were affected by Moody's action: -- US$162.5 million of 11% Senior Unsecured Global Notes due 2013: Affirmed at Ba2 -- US$275 million of 7.625% Senior Unsecured Global Notes due 2017: Affirmed at Ba2 The outlook on the ratings is negative. During the last 12 months ended in June 2009, Axtel's operating results weakened mainly due to technology problems associated with the rollout of WiMax and to the economic downturn, which drove an increase in subscriber disconnections. The WiMax issues appear to be resolved as reflected in the level of gross subscriber additions in the first half of 2009; in addition, the average monthly disconnection rate during the second quarter 2009 of 2.2% declined from its highest point of 2.4% in the first quarter 2009, which, however, is still high as compared with the average of 1.5% during 2008. Nevertheless, operating pressures are likely to persist, which will challenge the company's ability to sustain margins and reduce leverage to levels observed in early 2008. Among the main medium-term pressures are the current high levels of disconnections and a stronger competitive environment that has pushed operating expenses up amid a still weak economic environment. Overall, Axtel's Ba2 ratings reflect low financial leverage for its rating category, solid interest coverage credit metrics, and management's largely prudent financial policies. Constraining Axtel's ratings are its small revenue size as well as modest and volatile cash flow generation. In addition, Axtel's ratings reflect the operating challenges arising from strong competition from incumbent Telmex and Cable TV operators as well as wireless substitution. Competitive risk is somewhat mitigated by Axtel's stronger customer mix, with business customers representing 36% of lines in service but a high 79% of total revenues, which reduces the threat from cable voice offerings. Axtel balances modest cash flow generation and high business risk derived from being a small telecom operator with low (although increasing) financial leverage. The ratings factor in Axtel's stated leverage tolerance level of 3 times debt to EBITDA, which is above current ratio of 2.6 times at June 30, 2009, as adjusted by Moody's for pension liabilities and operating leases. Because a large portion of Axtel's expansion capex has been completed, free cash flow generation should improve, strengthening the company's debt payment capacity. To the extent FCF improvement is sustained, Axtel's ratings outlook could be stabilized. The WiMax technology should provide the basis for Axtel's revenue growth as it helps it offer mobility and higher bandwidth for data services, thus improving its competitiveness against both fixed line and mobile operators. However, if operating improvements are not observed over the next several months, a rating downgrade could occur. Axtel's liquidity is currently weak as cash on hand plus short term investments do not cover debt maturing in the next 12 months. However, Moody's believes that the company should be successful in refinancing debt and improving its liquidity position in the upcoming months. Axtel's ratings assume that the final legal decision about fixed-to-mobile interconnection rates, whenever reached, as well a possible acquisition of wireless spectrum, will not jeopardize Axtel's liquidity position or debt repayment capacity. Factors that could trigger a ratings downgrade include continuous weak operating results and modest free cash flow generation with limited prospects of recovery. Moody's will closely monitor the company's interest coverage ratio, as measured by EBITDA minus capex to interest expenses, and debt/EBITDA ratio. Specifically, an underperformance of the company's business or a major acquisition that drive adjusted debt/EBITDA to above 3 times with limited prospects for a rapid reduction would put negative pressure on Axtel's ratings. The ratings are unlikely to be upgraded in the near term because of the company's small size and challenging operating environment. However, should the company be able to lower subscriber disconnections to the point that revenues increase significantly and operating margins are sustainable, the outlook on its ratings could be stabilized. Before the rating actions, last action on Axtel's ratings was on November 6, 2007, when Moody's upgraded Axtel's ratings to Ba2 from Ba3. Moody's uses the Global Telecommunications Industry Methodology to assist in the assessment of Axtel's credit quality. The Methodology suggested rating outcome for Axtel is based on Moody's projected fiscal 2009 and 2010 financial metrics. All financial metrics incorporate Moody's standard adjustments. Application of this Methodology indicates a rating of Ba2 for Axtel, which corresponds to the company's current ratings. Based in Monterrey, Mexico, Axtel is a competitive local telephone company providing bundled products including voice, data and Internet services to business and residential users within MexiCo. Axtel provides telecommunications services using a suite of technologies including FWA, WiMAX, copper, fiber-optic, point to multipoint radios and traditional point to point microwave access, among others. Axtel is the second-largest fixed line telecom in Mexico with an 8% revenues market share as of June 2009. At present, Axtel serves 39 cities. In the last twelve months ended in June 30, 2009, revenues reached US$903 million with a 42.5% adjusted EBITDA margin. CABLEMAS SA: S&P Raises Long-Term Corporate Credit Rating to 'BB+' ------------------------------------------------------------------ Standard & Poor's Ratings Services said that it raised its long- term corporate credit and senior unsecured debt ratings on Cablemás S.A. de C.V. to 'BB+' from 'BB'. S&P also raised its long-term national scale corporate credit rating to 'mxA+' from 'mxA'. The outlook is stable. The rating action reflects Grupo Televisa S.A.B.'s (BBB+/Stable/ --) increased participation in Cablemas's equity, evidenced by its additional capital contribution of Mexican pesos (MXN) 557 million that increased its interest in the capital stock to 58.3% from 54.5%. The action also reflects Cablemas's consistent operating performance even under difficult economic conditions, and an improved business profile. "We believe that Cablemas represents a strategic asset to Televisa because the company is the second-largest cable operator in Mexico (as measured by number of subscribers)," said Standard & Poor's credit analyst Fabiola Ortiz. S&P believes that Televisa's investment in Cablemas is in line with its strategy to enter the telecom sector in which it is already a shareholder of two Mexican cable companies -- Cablevision and Television Internacional S.A. de C.V. (not rated). Although Cablemas represents a strategic asset to Televisa, the ratings are not equalized because the latter does not hold a majority voting share of the cable company. The rating on Cablemas reflects its important cable-TV subscriber base, its experienced management team, its high-quality network, affiliated company PCTV's purchasing power regarding video signals, and its leading role in the consolidating cable-TV sector in Mexico. Offsetting factors include considerable competition in the pay-TV industry in Mexico and from the telephone incumbent Telefonos de Mexico SA de CV (BBB+/Stable/--), Mexico's largest broadband Internet access provider; foreign exchange risks; and heavier investments necessary to upgrade the network to keep pace with technology. In November 2006, Televisa invested $258 million in long-term notes convertible into 99.99% of the equity of Alvafig, the holding company of a 49% interest in the voting stock of Cablemas. In February 2008, Televisa invested an additional $100 million to increase its interest in Cablemas to 54.5%. During first-quarter 2009, Alvafig made a capital contribution of MXN557 million to Cablemas in exchange for convertible limited voting shares, increasing its interest in the capital stock to 58.3% from 54.5% and maintaining its 49% of the voting stock in Cablemas. S&P believes that Televisa represents a strong shareholder with ample financial flexibility that will support Cablemas's future growth. The stable outlook reflects S&P's expectation that Cablemas will maintain its leading business position and financial profile despite higher competition. S&P could lower the rating if market conditions were to deteriorate significantly, affecting the company's subscriber base and the average monthly revenue per user. A positive action depends on Cablemas's ability to reduce its debt-to-EBITDA ratio to 1.5x to finance eventual future acquisitions and/or new services, and on an increase in Televisa's ownership share. COMERCI: Bondholder Deal “Very Positive,” Citigroup Says -------------------------------------------------------- Controladora Comercial Mexicana SAB de CV (Comerci)'s statement that local bondholders had approved a proposal to exchange their bonds for new debt of the Mexican retailer is “very positive,” Emily Schmall at Bloomberg News reports, citing Citigroup Inc. According the report, Comerci said that each of the defaulted bonds can be exchanged for a new seven year bond. “This news is very positive, due to the suspension of ongoing litigation and the positive signal of the company’s willingness to reach an agreement” with its other creditors, analysts at Citigroup’s Banamex unit wrote in a note obtained by the news agency. As reported in the Troubled Company Reporter-Latin America on September 1, 2009, Bloomberg News said Comerci said local bondholders approved a proposal to exchange their bonds for new debt. Each of the defaulted bonds can be exchanged for a new seven year bond, the company said in an e-mailed statement obtained by the news agency. The report related that the company said the new debt will be issued in “as short a time as possible.” According to a TCRLA report on July 22, 2009, citing Bloomberg News, Comerci is holding restructuring talks with JPMorgan Chase & Co. The report related Comerci expects JPMorgan Chase & Co. to join five other banks in approving a plan to restructure more than US$1.5 billion of debt. The report related Barclays Plc, Goldman Sachs Group Inc., Bank of America Corp.'s Merrill Lynch, Banco Santander SA and Citigroup Inc. agreed in principle to restructure the company's peso derivative losses. Reuters recalled that Comerci defaulted in October after massive derivatives losses sent its debt soaring above US$2 billion. On Oct. 9, 2008, Comerci filed for protection under Mexico's bankruptcy code Ley de Concurso Mercantil. About Comerci Controladora Comercial Mexicana SAB de CV a.k.a Comerci (MXK:COMERCIUBC) --- http://www.comerci.com.mx/--- is a Mexican holding company that, through its subsidiaries, operates several chains of retail stores, as well as a chain of family restaurants under the Restaurantes California brand name. In addition, CCM owns a 50% interest in the Costco de Mexico, a joint venture with Costco Wholesale Corporation, which operates a chain of membership warehouses in Mexico. The company's store chains include Comercial Mexicana, City Market, Mega, Bodega CM, Sumesa and Alprecio, among others. As of December 31, 2007, CCM operated 214 commercial units and 71 restaurants across Mexico. The company's retail outlets sell a variety of food items, including basic groceries and perishables, and non-food items, which include electronics, home furnishings, personal hygiene products and clothing. CCM is a parent of Tiendas Comercial Mexicana SA de CV, Tiendas Sumesa SA de CV, Restaurantes California SA de CV and Costco de Mexico SA de CV, among others. * * * As of June 19, 2009, the company continues to carry Moody's "D" LT Issuer Credit ratings. The company also continues to carry Fitch Ratings' "D" LT Issuer Default ratings. * MEXICO: Antitrust Agency Sets Wireless Auction Limits ------------------------------------------------------- Crayton Harrison at Bloomberg News reports that Mexico’s antitrust agency, Federal Competition Commission, set limits on the amount of wireless airwaves bidders can buy in this year’s auction, helping to ensure rivals can purchase spectrum to compete with Carlos Slim’s America Movil SAB. Bidders can accumulate no more than 80 megahertz of wireless spectrum in the 800, 1700 and 1900 megahertz frequency bands, the agency said in an e-mailed statement obtained by the news agency. According to the report, Grupo Televisa SAB said it’s interested in taking part in the auction for airwaves suitable for phone calls and high-speed Internet access. The report relates America Movil’s smaller rivals Telefonica SA and NII Holdings Inc. have also said they may snap up more airwaves. The agency, the report notes, said that once the recommendations on bidding limits are adopted, it can begin soliciting bids. The report relates that the agency plans to license a total of 120 megahertz of spectrum in the 1700 and 1900 megahertz bands, which can be used for third-generation, or 3G, wireless networks. ================= V E N E Z U E L A ================= CHRYSLER LLC: Venezuela Slaps Unit With US$6 Million Fine --------------------------------------------------------- Chrysler de Venezuela LLC, a unit of Chrysler Group LLC, was ordered to pay VEB13.4 million (US$6.2 million) to the tax agency for charges dating back to 2003 and 2004, Darcy Crowe at Dow Jones Newswires reports. The report relates that Chrysler de Venezuela will have 60 days to make good on the payment. According to the report, the tax agency said that an audit detected omissions in income from cars sold abroad and manufactured in Venezuela in 2004, among other irregularities. The report notes that the Venezuelan car industry has been suffering under government imposed import quotas and restrictions on the purchase of dollars at the official exchange rate of VEB2.15 bolivars. The report relates that General Motors temporarily halted its operations in June, while Mitsubishi Motors auto assembly plant in Venezuela has also shut down amid extremely low productivity from its workers. Dow Jones Newswires, citing the automobile industry chamber, notes that car sales in Venezuela dropped 51% in the first six months of the year. According to Moody's Investors Service, Venezuela continues to carry a B2 foreign currency rating and a B1 local currency rating with stable outlook. About Chrysler LLC Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Mopar(R) and Global Electric Motors (GEM) brand vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler's culture of innovation -- first established by Walter P. Chrysler in 1925 -- and Fiat's complementary technology -- from a company whose heritage dates back to 1899. Headquartered in Auburn Hills, Michigan, Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Dodge Ram. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. Chrysler LLC and 24 affiliates on April 30 sought Chapter 11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group LLC, and Greenhill & Co. LLC, for financial advisory services; and Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has changed its corporate name to Old CarCo following its sale to a Fiat-owned company. As of December 31, 2008, Chrysler had $39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler had $1.9 billion in cash at that time. In connection with the bankruptcy filing, Chrysler reached an agreement with Fiat SpA, the U.S. and Canadian governments and other key constituents regarding a transaction under Section 363 of the Bankruptcy Code that would effect an alliance between Chrysler and Italian automobile manufacturer Fiat. Under the terms approved by the Bankruptcy Court, the company formerly known as Chrysler LLC on June 10, 2009, formally sold substantially all of its assets, without certain debts and liabilities, to a new company that will operate as Chrysler Group LLC. Fiat has a 20 percent equity interest in Chrysler Group. Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Chrysler LLC and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) CITGO PETROLEUM: Stability Threatened by Government Moves --------------------------------------------------------- Citgo Petroleum Corp.'s financial stability is threatened by Venezuela's fiscal pressure and payments of the company's debt in a market with less demand of oil derivatives, El Universal reports. The report relates that Petroleos de Venezuela stopped selling oil to Citgo Petroleum between 2007 and 2008. Citgo was then obliged to borrow in order to fund PDVSA, which forced it to pay higher dividends and began asking the prepayment of some shipments, the report says. "Nowadays, Citgo has far more in common with the rest of the US refineries. It is not protected by the parent company any more and it is suffering it. Its situation this year and next year will depend on the evolution of that relationship," the report quoted Alan Boscoe, a refining analyst at PFC Energy in Washington, as saying. According to the report, Citgo said it is aware of the situation and keeps on fighting. "Citgo is making all the necessary efforts to successfully confront the great challenges facing the U.S. refining industry, which is pressured by the sharp global economic and financial crisis in 2009," the company said in an email statement to Reuters, the report notes. El Universal notes that for years, Venezuela has been selling Citgo's assets, but this information is almost unknown, as the company has failed to submit their reports to the US Securities and Exchange Commission (SEC). The report relates that the audited financial report confirmed that Citgo has been selling a good deal of its assets to focus on its three refineries -- Corpus Christi, Lake Charles and Lemont, with a combined capacity to refine 749,000 bpd. Meanwhile, the report says, Citgo's outlook in 2009 also looks complicated. "The collapse of refining margins and the sale of assets will make things worse for the company, whose image has been marred for political reasons, affecting retails sales, the report quoted Mr. Boscoe as saying. The company, the report notes, said it would evaluate the eventual renewal or extension of a credit line it uses for cash management. EL Universal says that this underscores the difficulties faced by the sector due to "credit restrictions, falling margins and decline in consumption.” However, the report adds, that the the sustained rise of oil prices and the eventual rebound in oil derivatives could reduce the pressure experienced by the company. 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. * * * As reported in the Troubled Company Reporter-Latin America on July 3, 2009, Fitch Ratings assigned a 'B+/RR4' rating to Petroleos de Venezuela S.A.'s proposed US$3 billion zero coupon notes due in 2011. These notes will be registered at Euroclear or Clearstream. Proceeds from the issuance are expected to be used to fund capital expenditures and for other general corporate purposes. Fitch also has these ratings on PDVSA: -- Foreign currency Issuer Default Rating 'B+' -- Local currency IDR 'B+' -- US$3 billion outstanding senior notes (due 2017) 'B+/RR4' -- US$3.5 billion outstanding senior notes (due 2027) 'B+/RR4' -- US$1.5 billion outstanding senior notes (due 2037) 'B+/RR4' About Citgo Petroleum Headquartered in Houston, Texas, Citgo Petroleum Corp. -- http://www.citgo.com/-- is owned by PDV America, an indirect, wholly owned subsidiary of Petroleos de Venezuela S.A., the state-owned oil company of Venezuela. * * * As reported in the Troubled Company Reporter on June 5, 2009, Fitch Ratings affirmed the current ratings of CITGO Petroleum Corporation but revised the company's Outlook to Negative from Stable. Fitch affirmed these ratings for CITGO: -- Issuer Default Rating at 'BB-'; -- Senior Secured Credit Facility at 'BBB-'; -- Secured Term Loan at 'BBB-'; -- Fixed-Rate Industrial Revenue Bonds at 'BBB-'. GENERAL MOTORS: To Reopen Venezuela Assembly Plant -------------------------------------------------- General Motors Co.'s Venezuela affiliate plans to reopen and restart production at its plant in Carabobo state, which has been closed for almost three months, because President Hugo Chavez's government has agreed to sell the company the U.S. dollars it needs to import car parts, Fabiola Sanchez reports at The Associated Press reports, citing GM President in Venezuela, Ronaldo Znidarsis. "We are working with the government for a plan to continue reducing what's left," the report quoted Mr. Znidarsis as saying. According to the report, Mr. Znidarsis said GM plans restart the plant next week with 1,700 of the plant's 2,900 employees. The report, citing Mr. Znidarsis, relates that the company must determine how far it can boost production before deciding to bring all its workers back. "We are going to begin the operation with a single work shift. Before deciding the people's fate, we must know what level of production we'll have," Mr. Znidarsis added. The AP recalles that GM halted operations at the plant in June, saying the company had accumulated some US$1.15 billion in debts to foreign providers. Mr. Znidarsis told The AP in an interview that the company is still struggling with what he called "significant" debts, but he said GM received assurance from the government that it would receive enough hard currency in coming months to reduce them. As reported in the Troubled Company Reporter-Latin America on June 25, 2009, Inside Costa Rica said that the Venezuela government said General Motors plant closures in the country are more due to the company's insolvency than an alleged delay by the Commission of Administration of Foreign Currency to deliver dollars. The report related that General Motors communique of June 15 indicated that it would close its plants claiming lack of foreign currency for the purchase of raw materials abroad and for paying its debts. However, the report noted that Vice Minister of Science, Technology and Industry, Efren Marin explained that it is "an interim situation that is being solved" and the closing should be seen within the context of serious economic problems of the United States home base. The report related that Mr. Marin, in an interviewed with Ultimas Noticias daily, insisted that General Motors should tell the truth since it has received US$1.3 billion dollars since 2008 and is one of the car manufacturers that has received the largest amount of foreign currency ever delivered. About General Motors Headquartered in Detroit, Michigan, General Motors Corp. (NYSE: GM) -- http://www.gm.com-- was founded in 1908. GM employs about 266,000 people around the world and manufactures cars and trucks in 35 countries. In 2007, nearly 9.37 million GM cars and trucks were sold globally under the following brands: Buick, Cadillac, Chevrolet, GMC, GM Daewoo, Holden, HUMMER, Opel, Pontiac, Saab, Saturn, Vauxhall and Wuling. GM's OnStar subsidiary is the industry leader in vehicle safety, security and information services. GM Europe is based in Zurich, Switzerland, while General Motors Latin America, Africa and Middle East is headquartered in Miramar, Florida. As reported by the Troubled Company Reporter, GM reported net loss of US$6.0 billion, including special items, in the first quarter of 2009. This compares with a reported net loss of US$3.3 billion in the year-ago quarter. As of March 31, 2009, GM had US$82.2 billion in total assets and US$172.8 billion in total liabilities, resulting in US$90.5 billion in stockholders' deficit. General Motors Corporation and three of its affiliates filed for Chapter 11 protection on June 1, 2009 (Bankr. S.D.N.Y. Lead Case No. 09-50026). The Honorable Robert E. Gerber presides over the Chapter 11 cases. Harvey R. Miller, Esq., Stephen Karotkin, Esq., and Joseph H. Smolinsky, Esq., at Weil, Gotshal & Manges LLP, assist the Debtors in their restructuring efforts. Al Koch at AP Services, LLC, an affiliate of AlixPartners, LLP, is the Debtors' restructuring officer. GM is also represented by Jenner & Block LLP and Honigman Miller Schwartz and Cohn LLP as counsel. Cravath, Swaine, & Moore LLP is providing legal advice to the GM Board of Directors. GM's financial advisors are Morgan Stanley, Evercore Partners and the Blackstone Group LLP. General Motors changed its name to Motors Liquidation Co. following the sale of its key assets to a company 60.8% owned by the U.S. Government. Bankruptcy Creditors' Service, Inc., publishes General Motors Bankruptcy News. The newsletter tracks the Chapter 11 proceeding undertaken by General Motors Corp. and its various affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) PETROLEOS DE VENEZUELA: Oil Unions Complain of Election Delays -------------------------------------------------------------- Rachel Jones at The Associated Press reports that Venezuelan oil workers complained of repeated delays in union elections that would help them gain greater negotiating power within Petroleos de Venezuela. The report relates that some union leaders suspect that the election, scheduled for Wednesday, was put off for a fifth time this week because government officials are trying to boost support for favored candidates while trying to prevent nonaligned union leaders from gaining power. "The intention is to end union leadership" and replace it with complacent government representatives, the report quoted Freddy Alvarado, one of nine candidates for the presidency of the United Oil Worker's Federation, as saying. The report notes that some union leaders said elections officials cited technical issues in delaying the vote. According to the report, Mr. Alvarado accused PDVSA managers of being behind the delays in order to avoid discussing a collective contract with workers, which could force the company to spend more of its limited oil income on demands including improved health care. The report relates that PDVSA denied the allegations. 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. * * * As reported in the Troubled Company Reporter-Latin America on July 3, 2009, Fitch Ratings assigned a 'B+/RR4' rating to Petroleos de Venezuela S.A.'s proposed US$3 billion zero coupon notes due in 2011. These notes will be registered at Euroclear or Clearstream. Proceeds from the issuance are expected to be used to fund capital expenditures and for other general corporate purposes. Fitch also has these ratings on PDVSA: -- Foreign currency Issuer Default Rating 'B+' -- Local currency IDR 'B+' -- US$3 billion outstanding senior notes (due 2017) 'B+/RR4' -- US$3.5 billion outstanding senior notes (due 2027) 'B+/RR4' -- US$1.5 billion outstanding senior notes (due 2037) 'B+/RR4' PETROLEOS DE VENEZUELA: Obliged to Import Gasoline -------------------------------------------------- Petroleos de Venezuela will import at least six shipments of fuel to meet the domestic demand after the simultaneous interruption of gasoline generating units in three of its refineries, El Universal reports, citing Reuters. According to the report, between 2008 and 2009, the local refining system has stopped frequently due to scheduled halts and incidents, which have reduced crude oil processing and have impacted exports of byproducts to the United States. "I estimate that these halts will lead to the importation of some six shipments of gasoline, components, alkylate, and (the additive to improve combustion)," Reuters quoted one trader as saying, the report relates. EL Universal notes that the catalytic cracker unit ((FCC) of the Amuay refinery has halted intermittently this month. However, the report relates Pdvsa sources did not confirm the report. Meanwhile, the report says that the neighboring refinery of Cardon has undergone maintenance turnaround which was scheduled in 2008. The report relates that union leaders said the FCC of El Palito is still halted, since maintenance works have also been delayed. 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. * * * As reported in the Troubled Company Reporter-Latin America on July 3, 2009, Fitch Ratings assigned a 'B+/RR4' rating to Petroleos de Venezuela S.A.'s proposed US$3 billion zero coupon notes due in 2011. These notes will be registered at Euroclear or Clearstream. Proceeds from the issuance are expected to be used to fund capital expenditures and for other general corporate purposes. Fitch also has these ratings on PDVSA: -- Foreign currency Issuer Default Rating 'B+' -- Local currency IDR 'B+' -- US$3 billion outstanding senior notes (due 2017) 'B+/RR4' -- US$3.5 billion outstanding senior notes (due 2027) 'B+/RR4' -- US$1.5 billion outstanding senior notes (due 2037) 'B+/RR4' PETROLEOS DE VENEZUELA: Government Moves Hurting Citgo Petroleum ---------------------------------------------------------------- Citgo Petroleum Corp.'s financial stability is threatened by Venezuela's fiscal pressure and payments of the company's debt in a market with less demand of oil derivatives, El Universal reports. The report relates that Petroleos de Venezuela stopped selling oil to Citgo Petroleum between 2007 and 2008. Citgo was then obliged to borrow in order to fund PDVSA, which forced it to pay higher dividends and began asking the prepayment of some shipments, the report says. "Nowadays, Citgo has far more in common with the rest of the US refineries. It is not protected by the parent company any more and it is suffering it. Its situation this year and next year will depend on the evolution of that relationship," the report quoted Alan Boscoe, a refining analyst at PFC Energy in Washington, as saying. According to the report, Citgo said it is aware of the situation and keeps on fighting. "Citgo is making all the necessary efforts to successfully confront the great challenges facing the U.S. refining industry, which is pressured by the sharp global economic and financial crisis in 2009," the company said in an email statement to Reuters, the report notes. El Universal notes that for years, Venezuela has been selling Citgo's assets, but this information is almost unknown, as the company has failed to submit their reports to the US Securities and Exchange Commission (SEC). The report relates that the audited financial report confirmed that Citgo has been selling a good deal of its assets to focus on its three refineries -- Corpus Christi, Lake Charles and Lemont, with a combined capacity to refine 749,000 bpd. Meanwhile, the report says, Citgo's outlook in 2009 also looks complicated. "The collapse of refining margins and the sale of assets will make things worse for the company, whose image has been marred for political reasons, affecting retails sales, the report quoted Mr. Boscoe as saying. The company, the report notes, said it would evaluate the eventual renewal or extension of a credit line it uses for cash management. EL Universal says that this underscores the difficulties faced by the sector due to "credit restrictions, falling margins and decline in consumption.” However, the report adds, that the the sustained rise of oil prices and the eventual rebound in oil derivatives could reduce the pressure experienced by the company. 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. * * * As reported in the Troubled Company Reporter-Latin America on July 3, 2009, Fitch Ratings assigned a 'B+/RR4' rating to Petroleos de Venezuela S.A.'s proposed US$3 billion zero coupon notes due in 2011. These notes will be registered at Euroclear or Clearstream. Proceeds from the issuance are expected to be used to fund capital expenditures and for other general corporate purposes. Fitch also has these ratings on PDVSA: -- Foreign currency Issuer Default Rating 'B+' -- Local currency IDR 'B+' -- US$3 billion outstanding senior notes (due 2017) 'B+/RR4' -- US$3.5 billion outstanding senior notes (due 2027) 'B+/RR4' -- US$1.5 billion outstanding senior notes (due 2037) 'B+/RR4' About Citgo Petroleum Headquartered in Houston, Texas, Citgo Petroleum Corp. -- http://www.citgo.com/-- is owned by PDV America, an indirect, wholly owned subsidiary of Petroleos de Venezuela S.A., the state-owned oil company of Venezuela. * * * As reported in the Troubled Company Reporter on June 5, 2009, Fitch Ratings affirmed the current ratings of CITGO Petroleum Corporation but revised the company's Outlook to Negative from Stable. Fitch affirmed these ratings for CITGO: -- Issuer Default Rating at 'BB-'; -- Senior Secured Credit Facility at 'BBB-'; -- Secured Term Loan at 'BBB-'; -- Fixed-Rate Industrial Revenue Bonds at 'BBB-'. PETROLEOS DE VENEZUELA: To Take Control of Powerhouse ----------------------------------------------------- To take control of the operations of Termo Barrancas powerhouse, the transition committee of Repsol and Petroleos de Venezuela, S.A. (PDVSA), together with several managements of Exploration and Production, South-Central Division, checked the facilities to prepare a report on the operational status. Under Decree 5,330, on reorganization of the domestic electrical system, a purchase agreement was signed in relation to the plant which has been operating under the responsibility of Repsol. Ramon Suarez, Operations Assistant Manager, Exploration and Production, South-Central Division, said that PDVSA will keep the operations at the Termo Barrancas gas-driven power plant. There are plans to increase the gas output and generate around 400 WVA. For his part, Luis Mata, Repsol National Planning Manager and a member of the transition committee, reported that every effort has been made to speed up the exchange of information and meet the terms and conditions set forth in the agreement. According to Aimara Barrueta, Senior Supervisor, Repsol Production and Maintenance, the plant generates 160 WVA, has been working for two years and has a payroll of 50 active workers. Mariano Gonzalez, Repsol Operations Manager, regarded as positive the visit of the PDVSA workers due to the collaborative spirit. Mr. Gonzalez also noted that the plant has a good maintenance level, with the highest safety standards. Finally, Mr. Suarez said that the Barrancas gas-driven power plant has a high-tech area in terms of process management. Therefore, PDVSA will work hard to keep its commitment to the residents of Barinas state. 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. * * * As reported in the Troubled Company Reporter-Latin America on July 3, 2009, Fitch Ratings assigned a 'B+/RR4' rating to Petroleos de Venezuela S.A.'s proposed US$3 billion zero coupon notes due in 2011. These notes will be registered at Euroclear or Clearstream. Proceeds from the issuance are expected to be used to fund capital expenditures and for other general corporate purposes. Fitch also has these ratings on PDVSA: -- Foreign currency Issuer Default Rating 'B+' -- Local currency IDR 'B+' -- US$3 billion outstanding senior notes (due 2017) 'B+/RR4' -- US$3.5 billion outstanding senior notes (due 2027) 'B+/RR4' -- US$1.5 billion outstanding senior notes (due 2037) 'B+/RR4' PETROLEOS DE VENEZUELA: Petropar Protests Irregularities in Deal ---------------------------------------------------------------- The Paraguayan Comptroller's Office warned against alleged irregularities in the agreements entered into by state-owned oil company Petroleos Paraguayos and its Venezuelan counterpart Petroleos de Venezuela, some days ahead of renewed talks to refinance the debt owed by the Paraguayan firm, EL Universal News reports, citing the Paraguayan press. According to the report, objections emerged from a performance assessment of FY2008 conducted by the Office of the Comptroller General in Petropar. The report relates that reference is made to three agreements on supply of gasoil reached by both companies during that period. The undertakings set "an additional interest rate of 18% (12% plus 6% for administrative arrangements), as opposed to the provisions set forth in an energy agreement signed by the two countries, where only 2 percent is established," the report quoted the the authority as saying. "Said agreements are illegal as they include covenants which were not expressly stipulated and even are inconsistent with the Caracas Agreement on Energy Cooperation," they added. The report adds that the Comptroller's Office also noted that two out of the three instruments are not dated. 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. * * * As reported in the Troubled Company Reporter-Latin America on July 3, 2009, Fitch Ratings assigned a 'B+/RR4' rating to Petroleos de Venezuela S.A.'s proposed US$3 billion zero coupon notes due in 2011. These notes will be registered at Euroclear or Clearstream. Proceeds from the issuance are expected to be used to fund capital expenditures and for other general corporate purposes. Fitch also has these ratings on PDVSA: -- Foreign currency Issuer Default Rating 'B+' -- Local currency IDR 'B+' -- US$3 billion outstanding senior notes (due 2017) 'B+/RR4' -- US$3.5 billion outstanding senior notes (due 2027) 'B+/RR4' -- US$1.5 billion outstanding senior notes (due 2037) 'B+/RR4' * VENEZUELA: Resumes Talks With Paraguay on Fuel Debt ----------------------------------------------------- The governments of Paraguay and Venezuela restarted talks to settle an account of more than US$250 million owned by Paraguayan state-run oil company Petropar to Petroleos de Venezuela, EL Universal reports. According to the report, the debt threatened to make unfeasible the administration of Petropar. The report relates that the firm imports most of the fuel consumed in Paraguay and subsidizes diesel prices. EL Universal notes that Pdvsa's high-ranking officials started in Asuncion meetings with their colleagues of Petropar in order to negotiate the debt incurred by the provision of diesel. Earlier, the report relates, Paraguay Presidents Fernando Lugo and President Hugo Chavez met to deal with the financing. The report says some political opponents warned against the possibility of Pdvsa claiming the major stake in the Paraguayan firm. However, the report relates, both governments denied these claims. * * * According to Moody's Investors Service, Venezuela continues to carry a B2 foreign currency rating and a B1 local currency rating with stable outlook. * VENEZUELA: Tax Agency Slaps Chrysler LLC With US$6MM Payment -------------------------------------------------------------- Chrysler de Venezuela LLC, a unit of Chrysler Group LLC, was ordered to pay VEB13.4 million (US$6.2 million) to the tax agency for charges dating back to 2003 and 2004, Darcy Crowe at Dow Jones Newswires reports. The report relates that Chrysler de Venezuela will have 60 days to make good on the payment. According to the report, the tax agency said that an audit detected omissions in income from cars sold abroad and manufactured in Venezuela in 2004, among other irregularities. The report notes that the Venezuelan car industry has been suffering under government imposed import quotas and restrictions on the purchase of dollars at the official exchange rate of VEB2.15 bolivars. The report relates that General Motors temporarily halted its operations in June, while Mitsubishi Motors auto assembly plant in Venezuela has also shut down amid extremely low productivity from its workers. Dow Jones Newswires, citing the automobile industry chamber, notes that car sales in Venezuela dropped 51% in the first six months of the year. According to Moody's Investors Service, Venezuela continues to carry a B2 foreign currency rating and a B1 local currency rating with stable outlook. About Chrysler LLC Chrysler Group LLC, formed in 2009 from a global strategic alliance with Fiat Group, produces Chrysler, Jeep(R), Dodge, Mopar(R) and Global Electric Motors (GEM) brand vehicles and products. With the resources, technology and worldwide distribution network required to compete on a global scale, the alliance builds on Chrysler's culture of innovation -- first established by Walter P. Chrysler in 1925 -- and Fiat's complementary technology -- from a company whose heritage dates back to 1899. Headquartered in Auburn Hills, Michigan, Chrysler Group LLC's product lineup features some of the world's most recognizable vehicles, including the Chrysler 300, Jeep Wrangler and Dodge Ram. Fiat will contribute world-class technology, platforms and powertrains for small- and medium-sized cars, allowing Chrysler Group to offer an expanded product line including environmentally friendly vehicles. Chrysler LLC and 24 affiliates on April 30 sought Chapter 11 protection from creditors (Bankr. S.D.N.Y (Mega-case), Lead Case No. 09-50002). Chrysler hired Jones Day, as lead counsel; Togut Segal & Segal LLP, as conflicts counsel; Capstone Advisory Group LLC, and Greenhill & Co. LLC, for financial advisory services; and Epiq Bankruptcy Solutions LLC, as its claims agent. Chrysler has changed its corporate name to Old CarCo following its sale to a Fiat-owned company. As of December 31, 2008, Chrysler had $39,336,000,000 in assets and $55,233,000,000 in debts. Chrysler had $1.9 billion in cash at that time. In connection with the bankruptcy filing, Chrysler reached an agreement with Fiat SpA, the U.S. and Canadian governments and other key constituents regarding a transaction under Section 363 of the Bankruptcy Code that would effect an alliance between Chrysler and Italian automobile manufacturer Fiat. Under the terms approved by the Bankruptcy Court, the company formerly known as Chrysler LLC on June 10, 2009, formally sold substantially all of its assets, without certain debts and liabilities, to a new company that will operate as Chrysler Group LLC. Fiat has a 20 percent equity interest in Chrysler Group. Bankruptcy Creditors' Service, Inc., publishes Chrysler Bankruptcy News. The newsletter tracks the Chapter 11 proceedings of Chrysler LLC and its debtor-affiliates. (http://bankrupt.com/newsstand/or 215/945-7000) * VENEZUELA: Legislators OK Conditions For Local Dollar Bond Sales ------------------------------------------------------------------ Venezuelan legislators approved the financial conditions for the issue of as much as US$4.65 billion in dollar-denominated bonds in the domestic market as part of the overall government's debt strategy for the year, Darcy Crowe at Dow Jones Newswires reports. The report relates that the financial conditions, greenlighted by the National Assembly's Finance Commission, allow the government to decide if it wants to issue VEB10 billion (US$4.65 billion) in bonds in U.S. dollars or local currency. According to the report, earlier this year, financial conditions approved by the lawmakers had allowed for bond sales only in bolivars. The VEB10 billion tranche, the report notes, is part of the government's debt strategy that allows for debt sales totaling VEB37 billion (US$17.2 billion). The report relates that the dollar-denominated bonds, which could be sold locally, would have maturities ranging from 2 to 20 years with coupon payments from 6% to 13%. Dow Jones Newswires says that the dollar-denominated bonds, which would be exchangeable for bolivars, sold locally would allow the government to infuse U.S. currency into the so-called parallel market and bring down its rate. The government, the report adds, said that it will work to reduce the gap between the parallel rate and the official exchange rate, which stands at VEB2.15 to the dollar. * * * According to Moody's Investors Service, Venezuela continues to carry a B2 foreign currency rating and a B1 local currency rating with stable outlook. *********** 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, Marites O. Claro, Joy A. Agravente, 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 * * *