TCRLA_Public/110314.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Monday, March 14, 2011, Vol. 12, No. 51



EMPRESA PROVINCIAL: Moody's Puts 'B3' Rating on US$565 Mil. Notes


AL-AHLI MAN: Creditors' Proofs of Debt Due March 18
AL-AHLI MAN: Member to Receive Wind-Up Report on April 8
AL-AHLI MAN: Creditors' Proofs of Debt Due March 18
AL-AHLI MAN: Member to Receive Wind-Up Report on April 7
DIGICEL GROUP: To Acquire Claro Jamaica

INVERNESS DISTRIBUTION: Appoints Morrison & Thresh as Liquidators
QUINTILES BERMUDA: Creditors' Proofs of Debt Due March 18
QUINTILES BERMUDA: Members' Final Meeting Set for April 7


CONTROLADORA COMERCIAL: Moody's Assigns 'Ba3' Corp. Family Rating
VINTE VIVIENDAS: Moody's Assigns 'Ba1' Rating to Proposed Bonds
* Moody's Confirms 'B1' Issuer Rating to State of Zacatecas


* BOND PRICING: For the Week March 7 to March 11, 2011

                            - - - - -


EMPRESA PROVINCIAL: Moody's Puts 'B3' Rating on US$565 Mil. Notes
Moody's Latin America has assigned provisional ratings of (P)B3 on
the global scale and (P) on the Argentine national scale to
Empresa Provincial de Energia de Cordoba's US$565 million proposed
notes, with a stable outlook.

Proceeds from the notes will be used to repay an existing loan
from the Fondo de Garant¡a de Sustentabilidad de la Administracion
Nacional de Seguridad Social and to complete the financing for the
construction of a new combined cycle thermal plant at Pilar, in
the Province of Cordoba.  The (P) provisional ratings will remain
in place until the full disbursement of the proposed note
offering.  In case EPEC fails in obtaining the full amount as
described above, Moody's will review all ratings accordingly.
Given the sizable capital expenditures remaining to complete the
plant, issuance of these notes is crucial for the successful
implementation of this investment program.

Moody's has reviewed preliminary draft legal documentation related
to the debt issuance and the assigned ratings assume that there
will be no material variation from the drafts reviewed and that
all agreements will be legally valid, binding and enforceable.  In
particular, Moody's ratings of EPEC's notes assume the due
execution of the transfer of rights to the trustee under the
Coparticipacion Federal de Impuestos and from the Resolution 220

                        Rating Rationale

EPEC, wholly owned by the Province of Cordoba, is the province's
vertically-integrated utility and the fourth-largest electricity
company in the country.  Because EPEC is an autarchic agency of
the provincial government, it is considered a government related

The (P)B3 and ratings reflect the application of Moody's
joint default analysis framework for GRIs, which takes into
account these four input factors: i) a baseline credit assessment
of 17 as a measure for the rated entity's standalone
creditworthiness, which is consistent with a Caa1 rating; ii) the
B3 rating of the Province of Cordoba as the support provider, as
well as iii) Moody's estimates of a high degree of implied
government support in the case of financial distress and iv) a
high default dependence between EPEC and the province.  Moody's
assigns BCAs on a scale from 1 to 21 with 1 reflecting the lowest
credit risk.

EPEC's BCA of 17 reflects a Caa credit profile and it captures the
company's material increase in leverage to fund the current
expansion program which has resulted in a deterioration in EPEC's
historical credit metrics.  The BCA also takes into account EPEC's
historically poor operating margins and weak cash generation.
Offsetting those credit negatives, EPEC's ratings are supported by
the importance of the company for the continuity of the service
provided within the Province of Cordoba, its position as the
fourth largest electricity company in the country behind three
federal regulated companies with operations in Buenos Aires, and
the province's 100% ownership.

Although sponsored by both the province and the national
government, EPEC's current expansion program principally
consisting of the construction of a new combined cycle at Pilar,
is significantly above EPEC's historical capital expenditures.  At
EPEC's current cash generation levels, the project magnitude and
its related financing are extremely aggressive.  However, to
finance the construction and to repay the required financing, EPEC
has entered into an agreement with Cammesa (Argentina's wholesale
electricity market administrator), to sell the energy from the new
combined cycle under a "Resolution 220" contract.  In addition to
establishing capacity and energy charges, this contract specifies
a specific remuneration charge related to the financing of the
combined cycle plant.  In addition to the contract, the repayment
of the notes will be supplemented from the province's
contributions through the Argentine co-participated tax regime
(Coparticipacion Federal de Impuestos).

Even though the Province of Cordoba is the support provider and it
is rated B3/, EPEC's national scale rating takes into
consideration both EPEC's position within the industry and its
financial position relative to other domestic peers.  In Moody's
view, EPEC's operating performance and recent results are weaker
than those of the other rated utilities in Argentina.

EPEC's ratings also take into consideration the repayment
mechanism for the notes from the Resolution 220 contracts.  While
the contracts and the expansion at Pilar are supported by the
increasing demand for electricity in the country, cash flows from
Resolution 220 are dependent on Cammesa's continuing to make
payments for the duration of the notes.  Cammesa, the wholesale
electricity market administrator in Argentina, continues to face
ongoing deficits and to make payments it depends on periodic
transfers from the national government.  Repayment of the notes is
therefore exposed to Argentine government (B3/Stable) credit risk.
Which is also the case with respect to the other repayment
mechanism via the utilization of the co-participated tax regime
which is funded by the federal government.

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 differ from Moody's global scale ratings in
that they are not globally comparable with the full universe of
Moody's rated entities, but only with NSRs for other rated debt
issues and issuers within the same country.  NSRs are designated
by a ".nn" country modifier signifying the relevant country, as in
".ar" for Argentina.  For further information on Moody's approach
to national scale ratings, please refer to Moody's Rating
Implementation Guidance published in August 2010 entitled "Mapping
Moody's National Scale Ratings to Global Scale Ratings."


EPEC's free cash flow generation has been negative in recent years
given its modest results at the operating level coupled with
strong capex needs arising from the construction of Pilar II
combined cycle plant which is not expected to go into commercial
operation until the beginning of 2012.  Consequently, Moody's also
expect negative free cash flow for 2011.

EPEC's primary source of liquidity has been capital contributions
from the province, the province's own bank, and from the federal
government.  In 2008, the company received funds from the federal
government of about ARS 140 million, which were applied to
initially finance the project.  During 2009/10, a US$300 million
loan from Anses plus additional loans from Banco de Cordoba and
the province were used to finance this investment.

EPEC's current liquidity profile is challenging and is considered
inadequate in Moody's opinion, as evidenced by a cash position of
about ARS 76 million as of September 30, 2010 vis-…-vis short term
debt of ARS 1.6 billion (including the ANSES loan due in March and
refinanced through October 2010).  Consequently, the proposed 8
year note offering is crucially important to not only facilitate
the refinancing of the existing short-term debt but also to
provide sufficient funds to finish the plant.

                         Rating Outlook

EPEC's stable outlook reflects the stable outlook of Cordoba's
ratings and Moody's expectation that implied support and
dependence levels will not change.  It also assumes that EPEC will
successfully implement its expansion at Pilar and will begin
receiving payments from Cammesa on a timely basis.

The ratings could be downgraded if the Province of Cordoba's
ratings are downgraded or if the start-up of commercial operations
at Pilar suffer a material delay or collections under the Res.
220 contracts or receipts under the co-participated tax regime are
not available to be transferred to the trustee.

Given EPEC's aggressive leverage position, weak liquidity and weak
operating results, a rating upgrade is unlikely in the near term.
However, EPEC's ratings or outlook could be revised upward if
there were an upgrade of the province's ratings or if there is a
material improvement in the operating results such that Funds from
Operations pre-Working Capital + Interest to Interest and Debt
exceeds 2.0x and 10% on a sustainable basis.

Empresa Provincial de Energia de Cordoba is the province's
vertically integrated electric utility and the fourth largest
electricity company in Argentina.  As of September 30, 2010 EPEC
reported revenues of ARS 1.5 billion.


AL-AHLI MAN: Creditors' Proofs of Debt Due March 18
The creditors of Al-Ahli Man Multi Strategy Guaranteed Limited are
required to file their proofs of debt by March 18, 2011, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on March 2, 2011.

The company's liquidator is:

         Beverly Mathias
         c/o Argonaut Limited
         Argonaut House, 5 Park Road
         Hamilton HM O9

AL-AHLI MAN: Member to Receive Wind-Up Report on April 8
The member of Al-Ahli Man Multi Strategy Guaranteed Limited will
receive on April 8, 2011, at 9:30 a.m., the liquidator's report on
the company's wind-up proceedings and property disposal.

The company commenced wind-up proceedings on March 2, 2011.

The company's liquidator is:

         Beverly Mathias
         c/o Argonaut Limited
         Argonaut House, 5 Park Road
         Hamilton HM O9

AL-AHLI MAN: Creditors' Proofs of Debt Due March 18
The creditors of Al-Ahli Man Multi Strategy Trading Limited are
required to file their proofs of debt by March 18, 2011, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on March 2, 2011.

The company's liquidator is:

         Beverly Mathias
         c/o Argonaut Limited
         Argonaut House, 5 Park Road
         Hamilton HM O9

AL-AHLI MAN: Member to Receive Wind-Up Report on April 7
The member of Al-Ahli Man Multi Strategy Trading Limited will
receive on April 7, 2011, at 9:30 a.m., the liquidator's report on
the company's wind-up proceedings and property disposal.

The company commenced wind-up proceedings on March 2, 2011.

The company's liquidator is:

         Beverly Mathias
         c/o Argonaut Limited
         Argonaut House, 5 Park Road
         Hamilton HM O9

DIGICEL GROUP: To Acquire Claro Jamaica
RadioJamaica reports that Digicel Group has signed an agreement
with America Movil to acquire its Claro business in Jamaica.

The deal will also see Digicel selling its business in El Salvador
and Honduras to America Movil, according to RadioJamaica.   The
report relates that the financial terms of the transaction are not
being disclosed, however, there will be a net cash payment to
Digicel Group.

The transaction is subject to regulatory approvals and is expected
to close in the second calendar quarter, the report notes.

                       About Digicel Group

Digicel Group Limited -- 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 January 14, 2010, the company continues to carry Moody's
"Caa1" senior unsecured debt rating.

INVERNESS DISTRIBUTION: Appoints Morrison & Thresh as Liquidators
On February 28, 2011, Michael Morrison and Charles Thresh of KPMG
Advisory Limited were appointed as provisional liquidators of
Inverness Distribution Limited.

QUINTILES BERMUDA: Creditors' Proofs of Debt Due March 18
The creditors of Quintiles Bermuda Ltd. are required to file their
proofs of debt by March 18, 2011, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on March 1, 2011.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House, 2 Church Street
         Hamilton HM 11

QUINTILES BERMUDA: Members' Final Meeting Set for April 7
The members of Quintiles Bermuda Ltd. will hold their final
meeting on April 7, 2011, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company commenced wind-up proceedings on March 1, 2011.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House, 2 Church Street
         Hamilton HM 11


CONTROLADORA COMERCIAL: Moody's Assigns 'Ba3' Corp. Family Rating
Moody's Investors Service assigned a Ba3 corporate family rating
to Controladora Comercial Mexicana, S.A.B. de C.V.  At the same
time, Moody's assigned Ba3 senior secured ratings to MXN16.4
billion (US$1.3 billion) in various domestic currency bonds and
loans due from 2012 to 2018 and a Ba3 senior secured foreign
currency rating to US$224 million in global bonds due in 2018.
The rating outlook is stable.

Ratings assignment:

  -- First Lien Sr. Secured Restructured MXN5,255 million loans
      (Tranche 1), Assigned Ba3

  -- First Lien Sr. Secured Restructured MXN3,408 million loans
      (Tranche 2), Assigned Ba3

  -- MXN4,151 million under Asset Linked Facility Tranche
     A1, Assigned Ba3

  -- MXN1,616 million under ALF Tranche A2, Assigned Ba3

  -- Sr. Secured Restructured MXN1,951 million global bonds due in
     2018, Assigned Ba3

  -- Sr. Secured Restructured US$224 million global bonds due in
     2018, Assigned Ba3

                        Ratings Rationale

"The Ba3 ratings balance the benefits of a fairly defensive
business profile typical for a food retailer and the CCM's
significant market position as Mexico's third largest food
retailer with the longer term challenge of securing its market
position in an increasingly competitive local retail sector and
the company's high financial leverage", said Nymia Almeida, Vice
President and Senior Analyst at Moody's.  During the debt
restructuring process in late 2008 through 2010, CCM's operations
deteriorated temporarily and its expansion plans were curtailed as
compared to periods before the bankruptcy filing in October 2008,
weakening its competitive position in the medium term.  In the
process, the company's Moody's-adjusted leverage increased
significantly to 5.6x in FY 2010 from 1.8x in FY 2007.

With 2010 revenues of MXN55.7 billion (US$4.4 billion), CCM is a
relevant player in the Mexican food retail market where it has
been the #3 largest food retailer in the country, following
Walmart and Soriana.  Currently, CCM holds around 12% market share
measured within the four largest players.  This solid position
historically provided CCM with a good operating leverage and
significant clout with suppliers and allowed the company to partly
absorb the negative impact of its insolvency in October 2008 and
the subsequent restructuring that ended in 2010.

Since October 2008, when the company defaulted on its debt
payments and filed for bankruptcy protection under Mexican law
(Ley de Concursos Mercantiles), CCM started a restructuring
process with its creditors that concluded in December 2010.  As a
result of this process, the company reduced significantly its
store expansion and Capex relative to depreciation expense fell to
0.7x in 2008 from 3.5x in 2007 (in 2010 it was 0.6x).  The
underinvestment in store refurbishment may pressure the company's
competitive position, especially in the light of a more aggressive
competitive environment.  CCM has a strong foothold in the Mexico
City metropolitan area and the central region of the country.
However, Moody's believes that CCM's market position will be
challenged going forward, especially in the light of a more
aggressive competitive environment, with Walmart's recently
announced plan to open 365 stores in Mexico during 2011 and
Chedraui's (#4 player) growth above peers in recent years, which
has reduced its gap with CCM.

After the default in 2008, CCM's credit metrics deteriorated
significantly with leverage measured as Debt / EBITDA increasing
to 6.0 x in 2008 from 1.8x in 2007 on a Moody's-adjusted basis.
As of December 2010, credit metrics remain weak for the Ba3 rating
category, with leverage at 5.6x and FCF/Net Debt at 2.8%.
However, going forward, Moody's expect that metrics will gradually
improve towards levels more in line with its rating, as the
company uses excess cash from operations and potencial sell out of
non-core assets to prepay debt.  The restructured debt agreements
have a number of limitations associated with dividend payouts,
related-parties transactions, asset sales, intercompany loans and
derivatives transactions.  These limitations reduce the company's
financial flexibility but help offset the currently weak credit

Currently, all of CCM's debt is secured.  Whereas around MXN18.4
billion (US$1.5 billion -reduced from original US$1.6 as the
company prepayed a portion of Tranch 1 and 4 of the restrucred
loans in the end of 2010-) of restructured debt is at CCM holding
company level, the company also has around MXN1.5 billion
(US$118.0 million) outstanding debt in secured certificados
burs tiles due in 2016 (unrated), issued by Tiendas Comercial
Mexicana, the main operating subsidiary of CCM.  The company's
committed credit lines are also at TCM level.  Moody's note that,
even when this creates potential subordination of payments,
maximum debt at TCM, including current committed credit
facilities, will reach only about 11% of total debt.  This low
portion of debt at the operating subsidiary along with contractual
restrictions under the restructured debt agreements mitigate the
subordination risk.  In addition, all of the rated debt is at the
same level given Moody's expectations that recoveries in a stress
scenario will likely be similar considering the various collateral
and structural considerations.

The stable rating outlook assumes continued solid operating trends
as shown by margin stability and continued flat or growing same
store sales, with credit metrics improving slightly as CCM
gradually pays down its debt with excess cash flow from operations
and potencial sell out of non-core assets.  The cushion for
negative deviations is limited because current credit metrics are
weak for the current Ba3 level and the company has limited
financial flexibility under its credit agreements.

An upward ratings pressure could occur if the company reduces its
leverage to below 4.5x adjusted Debt/EBITDA from current 5.6x,
while at least maintaining flat Same Stores Sales growth.  A
positive ratings pressure will require that debt reduction be
coupled with a revamp of the company's capex so that it can
further protect its market position.

Going forward, ratings could come under pressure if Same Store
Sales growth is negative or operating margins deteriorate,
preventing CCM from reducing debt as planned and resulting in
weakening credit metrics.  Negative pressure could occur if the
company is unable to at least gradually reduce its current
adjusted Debt/EBITDA in the foreseeable future.

This is the first time Moody's rated CCM, after ratings were
withdrawn in late 2008, prompted by the credit default.

Controladora Comercial Mexicana, S.A.B. de C.V., headquartered in
Mexico City, is Mexico's third largest food and general
merchandise retailer, with US$4.4 billion in revenues in 2010.  As
of December 31, 2010, CCM operated 232 stores under eight retail
banners with a total selling area of 1.64 million square meters.
CCM has a nationwide presence with about 70% of its selling floor
concentrated in the Mexico City metropolitan area and the
country's central region.  The company is also present in Mexico's
family-style convenience restaurant segment, with 70 "California"
brand restaurants throughout the country, and four "Beer Factory"
brand dining restaurants.  Despite the bankruptcy, CCM remains
family controlled, while approximately 36% of its shares are
traded on the Mexican Stock Exchange.

VINTE VIVIENDAS: Moody's Assigns 'Ba1' Rating to Proposed Bonds
Moody's de Mexico has assigned an national scale rating to
the proposed bond issuance of Vinte Viviendas Integrales, S.A.P.I.
de C.V. ((P)Ba1 global scale, local currency).  In addition,
Moody's has assigned a national scale issuer rating (B2
global scale, local currency).  This is the first time Moody's
rates Vinte.  The rating outlook is stable.

These first-time ratings were assigned:

Vinte Viviendas Integrales, S.A.P.I. de C.V.

  -- (P)Ba1 / to the proposed bond rating
  -- B2 / issuer rating

                        Ratings Rationale

Vinte proposes to issue MXN$100 million from a five-year, MXN$1
billion MTN program.  The notes will have a maturity of three
years and will carry a 50% partial credit guaranty from the
International Finance Corporation (LT issuer rating Aaa/Stable).
The IFC will guarantee to cover six amortization payments up to
MXN$50 million pesos.  Vinte and the IFC have agreed to sign prior
to the proposed bond issuance a revolving line of credit agreement
in the amount of MXN$50 million for the sole purpose of drawing on
the PCG, in the event Vinte is unable to make its bond payments.
The IFC guarantee is backed by a pool of assets held in a trust,
the value of which must be maintained at 1.3x the PCG of MXN$50
million plus any amounts outstanding on an existing MXN$136
million working capital line of credit that Vinte has with the
IFC.  Proceeds from this issuance will be used to repay some
outstanding construction loans, pay down a portion of the
outstanding balance on the existing working capital line with the
IFC and for general corporate purposes.

The (P)Ba1 rating of the proposed issuance is, on the global
scale, four notches above Vinte's issuer rating.  The proposed
bond rating reflects several factors including Vinte's underlying
issuer rating of B2/, the rating of the IFC (Aaa/Stable),
the amortization schedule of the transaction, how the guarantee is
applied in the event of default and the expected recovery values
of the transaction's collateral, which correlate directly to
Vinte's issuer rating.

The B2/ issuer rating reflects Vinte's position as a niche
player in the Mexican homebuilding sector, focused on the
construction of sustainable urban communities in high-growth
areas.  Vinte has differentiated itself by offering clients
services such as technology in the home by providing PCs with the
purchase of every home as well as complementary internet access
for the first few months, several systems to optimize monthly
utility use and post-sale value-added through the creation of
community boards.  The company sales mix is mainly focused on
economic/affordable entry-level product, areas where the greatest
demand lies, along with some middle and upper-income housing.
Vinte has a relatively short operating history (founded in 2001
and started operations in 2003) and is small in comparison to the
largest public homebuilders, however the company has an
experienced management team in place that has worked together for
many years.  In addition, the company has had stable earnings
growth with a solid fixed charge coverage and modest leverage
ratio, coupled with efficient controls and construction expertise.
The IFC is a major shareholder and holds the right to a seat on
the company's Board of Directors.  The IFC is also an important
lender for Vinte.

These positive factors are offset by the high investment costs of
land and infrastructure as well as some speculative homebuilding.
The company also has substantial geographic concentration in the
State of Mexico.  Other challenges include the business's reliance
on the Mexican government's support for housing, Mexico's economic
and political environment in addition to funding concentration for
low-income housing.  Mortgages are allocated almost exclusively by
INFONAVIT and FOVISSSTE, which represent approximately 45% and 35%
of Vinte's mortgaged home sales, respectively.

The stable rating outlook is based on Moody's determination that
Vinte's sound management team executes strong internal controls,
construction expertise and efficient methods.  Moody's believes
that Vinte has a well thought out strategic plan and has done a
good job of executing on it since operations began with a long-
term commitment from the IFC as shareholder the right of a board
member and as a lender.  The stable outlook also reflects Moody's
expectation that Vinte will at least maintain its fixed charge
coverage ratio and leverage and continue to improve efficiencies
in land development.  Furthermore, Moody's also expects that Vinte
will continue to focus on targeting its current product mix, while
maintaining high quality construction.

Rating improvements will be difficult in the medium-term, but
would be predicated upon Vinte increasing its size by at least 30%
based on total assets while at least maintaining its solid credit
statistics.  Rating improvements also could result from bringing
Total Debt/Total Assets closer to 30%, while at a minimum having
EBITDA margins in the low to mid 20% range.  Downward rating
pressure would result from substantial missteps in its growth
strategy as evidenced by consistent (more than two quarters)
negative free cash flow generation.  In addition, downward rating
movements will be predicated upon bringing total debt to total
asset levels closer to 50%, with EBITDA margins sustained below
20% and fixed charge coverage falling consistently below 2x.
Increased costs of land and land development would also result in
negative rating pressure, as would an adverse shift in Mexican
governmental housing policy.

Vinte Viviendas Integrales, S.A.P.I. de C.V., based in Mexico
City, Mexico, is a fully integrated, diversified homebuilder
engaged in the development, construction, marketing, consulting,
and sales of economic/affordable entry-level as well as some
middle- and upper-income housing developments in Mexico.  As of
September 30, 2010, Vinte reported approximately $1.2 billion
Mexican pesos in assets and $0.5 billion Mexican pesos in
shareholders' equity.

* Moody's Confirms 'B1' Issuer Rating to State of Zacatecas
Moody's de Mexico confirmed the (Mexican National Scale)
issuer rating assigned to the State of Zacatecas.  Moody's
Investors Service confirmed the B1 (Global Scale, local currency)
issuer rating assigned to the State of Zacatecas.  These
confirmations conclude the review for a possible downgrade that
was initiated on October 26, 2010, following a selective default
on a short-term loan (MXN 248 million outstanding at the time of
default) with a major Mexican bank during the transition of state

                        Ratings Rationale

Given the state's moderate debt burden at the time of default,
this event illustrated a lack of comprehensive debt management
policies and inherent weakness in the government's credit culture.
Accordingly, following the default, the review was to a) evaluate
the magnitude of losses suffered by lenders on the defaulted
short-term loan, b) monitor debt service payments on other state
debt obligations and c) assess changes to internal governance

The ratings confirmation and the revision of the outlook to stable
reflect: a) the full repayment, including all corresponding
penalties and accrued amounts, of the short-term line of credit in
November 2010, b) the continued full and timely debt service
payments on all other state debt obligations since the selective
default and c) recent measures to strengthen internal governance
policies, including initiatives to enhance the level of
transparency on state financial affairs.

In addition to the credit implications of the recent selective
default, and the subsequent resolution that left loan holders
whole, the B1/ ratings also take into account the state's
moderate cash financing requirements, driven principally by
personnel and capital spending pressures, which continue to
generate borrowing requirements and pressures on liquidity.

The last rating action with respect to the State of Zacatecas was
taken on October 26, 2010, when Moody's downgraded the State of
Zacatecas' issuer ratings to B1 and and placed ratings
under review for possible downgrade.


* BOND PRICING: For the Week March 7 to March 11, 2011

Issuer              Coupon   Maturity   Currency          Price
------              ------   --------   --------          -----


ARGENT- DIS             5.83   12/31/2033    ARS            165.8
ARGENT-PAR              1.18   12/31/2038    ARS             62.5
ARGENT-DIS              7.82   12/31/2033    EUR             70.25
ARGENT-DIS              7.82   12/31/2033    EUR             72
ARGENT-DIS              4.33   12/31/2033    JPY             42
ARGENT-PAR&GDP          0.45   12/31/2038    JPY              8
BODEN 2014                 2   9/30/2014     ARS            162
BOGAR 2018                 2   2/4/2018      ARS            151


BANCO BPI (CI)          4.15   11/14/2035    EUR           49.121
BANIF FIN LTD              3   12/31/2019    EUR            18.75
BCP FINANCE BANK        5.01   3/31/2024     EUR           56.783
BCP FINANCE BANK        5.31   12/10/2023    EUR           59.599
BCP FINANCE CO         5.543                 EUR         59.83186
BCP FINANCE CO         4.239                 EUR               58
BES FINANCE LTD        5.772   2/7/2035      EUR         58.15221
BES FINANCE LTD         5.58                 EUR         61.01657
BES FINANCE LTD          4.5                 EUR         60.46845
CHINA FORESTRY          7.75   11/17/2015    USD               62
CHINA FORESTRY          7.75   11/17/2015    USD               55
DUBAI HLDNG COMM           6   2/1/2017      GBP         76.14821
EFG ORA FUNDING          1.7   10/29/2014    EUR         65.36897
ESFG INTERNATION       5.753                 EUR           59.725
IMCOPA INTL CAYM      10.375   12/16/2014    USD               38
PUBMASTER FIN          6.962   6/30/2028     GBP         53.09666
PUBMASTER FIN           8.44   6/30/2025     GBP           55.724
THPA FINANCE LTD       8.241   3/15/2028     GBP         72.93495


AGUAS NUEVAS             3.4   5/15/2012     CLP           1.0996
CGE DISTRIBUCION        3.25   12/1/2012     CLP         39.74357
ESVAL S.A.               3.8   7/15/2012     CLP         37.65094
MASISA                  4.25   10/15/2012    CLP          40.4049


PETROLEOS DE VEN       12.75   2/17/2022     USD         76.51667
VENEZUELA                  7   3/31/2038     USD            55.25
VENEZUELA                  7   3/31/2038     USD         54.07785
VENEZUELA                  6   12/9/2020     USD            57.35
VENEZUELA               7.65   4/21/2025     USD             59.6
VENEZUELA               8.25   10/13/2024    USD            62.15
VENEZUELA               9.25   5/7/2028      USD            65.75
VENEZUELA               7.75   10/13/2019    USD            66.25
VENEZUELA                  9   5/7/2023      USD               67
VENEZUELA                  7   12/1/2018     USD            66.75
VENEZUELA               9.25   9/15/2027     USD         68.94757
VENEZUELA               9.25   9/15/2027     USD             71.5
VENEZUELA               5.75   2/26/2016     USD             71.1
VENZOD - 189000        9.375   1/13/2034     USD            66.25


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


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. Agravante, Rousel Elaine T.
Fernandez, Valerie U. Pascual, Psyche A. Castillon, Julie Anne G.
Lopez, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A.
Chapman, Editors.

Copyright 2011.  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 * * *