TCRLA_Public/110323.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

            Wednesday, March 23, 2011, Vol. 12, No. 58

                            Headlines



B A H A M A S

CABLE & WIRELESS: Protest Fails To Block Bahamas Telecoms Deal


B E R M U D A

CBS-CSI DISTRIBUTION: Creditors' Proofs of Debt Due April 4
CBS-CSI DISTRIBUTION: Member to Hear Wind-Up Report on April 19
CBS STUDIOS: Creditors' Proofs of Debt Due April 4
CBS STUDIOS: Member to Hear Wind-Up Report on April 19
CBS WORLDVISION: Creditors' Proofs of Debt Due April 4

CBS WORLDVISION: Member to Hear Wind-Up Report on April 19


B R A Z I L

FUNDO DE INVESTIMENTO: Moody's Raises Ratings on Senior Shares


C A Y M A N   I S L A N D S

AC98 LIMITED: Shareholders' Final Meeting Set for April 13
BUSHMILL INTERNATIONAL: Members to Hear Wind-Up Report on March 25
CONSTANCE LIMITED: Members to Hear Wind-Up Report on March 29
EGL-3D HOLDINGS: Members to Hear Wind-Up Report on March 29
HALLIBURTON PRODUCTS: Members' Final Meeting Set for April 14

MATTERHORN VENTURES: Shareholders' Final Meeting Set for April 5
MCC INTERNATIONAL: Shareholders' Final Meeting Set for April 15
MCC INTERNATIONAL: Shareholders' Final Meeting Set for April 15
MEDLEY MACRO: Shareholder to Hear Wind-Up Report on April 15
MEDLEY MACRO: Shareholder to Hear Wind-Up Report on April 15

PHILLIPS CAPITAL: Shareholder to Hear Wind-Up Report on March 25
QUEENNIE LIMITED: Members to Hear Wind-Up Report on March 29
RAVEN CREDIT: Shareholders' Final Meeting Set for April 15
ROSANNA LIMITED: Members to Hear Wind-Up Report on March 29
RYADA MULTI-STRATEGY: Shareholders' Final Meeting Set for April 5

SILKSKY LIMITED: Members to Hear Wind-Up Report on March 29
SINNAMARY INTERNATIONAL: Members' Final Meeting Set for April 21
TUCK INVESTMENTS: Members to Hear Wind-Up Report on March 29
US BINNEY: Members to Hear Wind-Up Report on March 29


C O L O M B I A

ECOPETROL SA: S&P Raises Corporate Credit Rating From 'BB+'


J A M A I C A

DIGICEL GROUP: Claro Deal May Close in 2nd Quarter, Worries LIME


M E X I C O

FINANCIERA INDEPENDENCIA: Fitch Keeps 'BB-' Issuer Default Ratings


P E R U

INKIA ENERGY: Fitch Assigns 'BB-' Issuer Default Rating
INKIA ENERGY: Moody's Assigns 'B1' Corporate Family Rating


                            - - - - -


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B A H A M A S
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CABLE & WIRELESS: Protest Fails To Block Bahamas Telecoms Deal
--------------------------------------------------------------
The RJR News reports that Bahamas' parliamentarians have voted in
favor of Cable & Wireless Communications plc's acquisition of a
51% stake in Bahamas Telecoms Company.

As reported by the Troubled Company Reporter-Latin America on
Dec. 30, 2010, the Royal Gazette said that CWC signed a non-
binding memorandum of understanding with the Government of the
Commonwealth of the Bahamas to acquire the 51% interest in BTC.
Under the MOU, the Royal Gazette said, it is proposed that CWC
will acquire the majority equity stake in BTC, including
management control of the business, for $210 million, and that CWC
will work with the Government and the management of BTC to develop
a business plan for BTC, addressing its plans for the
modernization of telecommunications throughout the Bahamas and for
the development of BTC following privatization.  According to the
Royal Gazette, the MOU also stipulates a restructuring of the
workforce of BTC soon after completion of the transaction, which
will be carried out on a voluntary basis.  The Royal Gazette
related that subject to completion, the acquisition is expected to
be funded from CWC's existing cash balances and debt facilities.

According to the RJR News, Bahamians protested against the deal on
Monday, but failed to convince parliamentarians to snub the deal.

                      About Cable & Wireless

Cable & Wireless Communications PLC is a global provider of
telecommunication and Internet services.  The Group's global
communication services offer IP voice and hosting services to
businesses located the UK, USA, Europe.  Cable & Wireless
telecommunication services provide fixed and mobile voice, data
and IP services to consumers and business located in the
Caribbean.

                              *     *     *

As of February 14, 2011, the Company continues to carry Standard
and Poor's "B" short-term issuer credit ratings.  The Company also
continues to carry Moody's "B1" senior unsecured debt rating.


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


CBS-CSI DISTRIBUTION: Creditors' Proofs of Debt Due April 4
-----------------------------------------------------------
The creditors of CBS-CSI Distribution (Bermuda) Ltd. are required
to file their proofs of debt by April 4, 2011, to be included in
the company's dividend distribution.

The company commenced wind-up proceedings on March 16, 2011.

Ernest Morrison is the company's liquidator.


CBS-CSI DISTRIBUTION: Member to Hear Wind-Up Report on April 19
---------------------------------------------------------------
The sole member of CBS-CSI Distribution (Bermuda) Ltd. will
receive on April 19, 2011, at 10:00 a.m., the liquidator's report
on the company's wind-up proceedings and property disposal.

The company commenced wind-up proceedings on March 16, 2011.

Ernest Morrison is the company's liquidator.


CBS STUDIOS: Creditors' Proofs of Debt Due April 4
--------------------------------------------------
The creditors of CBS Studios (Bermuda) Ltd. are required to file
their proofs of debt by April 4, 2011, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on March 16, 2011.

Ernest Morrison of Cox Hallett Wilkinson Limited is the company's
liquidator.


CBS STUDIOS: Member to Hear Wind-Up Report on April 19
------------------------------------------------------
The sole member of CBS Studios (Bermuda) Ltd. will receive on
April 19, 2011, at 10:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The company commenced wind-up proceedings on March 16, 2011.

Ernest Morrison of Cox Hallett Wilkinson Limited is the company's
liquidator.


CBS WORLDVISION: Creditors' Proofs of Debt Due April 4
------------------------------------------------------
The creditors of CBS Worldvision (Bermuda) Ltd. are required to
file their proofs of debt by April 4, 2011, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on March 16, 2011.

Ernest Morrison of Cox Hallett Wilkinson Limited is the company's
liquidator.


CBS WORLDVISION: Member to Hear Wind-Up Report on April 19
----------------------------------------------------------
The sole member of CBS Worldvision (Bermuda) Ltd. will receive on
April 19, 2011, at 10:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The company commenced wind-up proceedings on March 16, 2011.

Ernest Morrison of Cox Hallett Wilkinson Limited is the company's
liquidator.


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B R A Z I L
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FUNDO DE INVESTIMENTO: Moody's Raises Ratings on Senior Shares
--------------------------------------------------------------
Moody's America Latina has upgraded the ratings of the Senior
Shares of Fundo de Investimento em Direitos Creditorios Nao-
Padronizados Companhia de Paulista de Trens Metropolitanos to
Aa1.br (sf) from Aa3.br (sf) (Brazilian National Scale) and to
Baa3 (sf) from Ba2 (sf) (Global Scale, Local Currency).

FIDC CPTM is a securitization transaction by means of a closed-
ended FIDC and backed by future collections of certain train
tickets sold by Companhia Paulista de Trens Metropolitanos (CPTM)
in a number of predefined eligible train stations.  The senior and
subordinated shares, issued in March 2007, have a legal final
maturity scheduled for March 2014 (36 months remaining).  The fund
is currently in the amortization period and making monthly
principal and interest payments on the Senior Shares.

Issuer: FIDC CPTM

* Senior Shares -- upgraded to Aa1.br (sf) from Aa3.br (sf)
  (National Scale) & Baa3 (sf) from Ba2 (sf) (Global Scale, Local
  Currency)

                        Ratings Rationale

The rating action is based on the transaction's performance to
date, which has been according to expectations.  The DSCR, which
is calculated by dividing monthly cash collections by the next
projected monthly amortization to be made on the Senior Shares,
was at 4.40x as of 12/31/2010, well above the 2.0x trigger level.
Since closing, the DSCR has remained above 3.4x.

The transaction benefits from a Debt Service Coverage Ratio (DSCR)
trigger, which requires a minimum coverage of 2.0x of eligible
collections over the next projected payment of principal and
interest.  If this trigger is breached, an revision event is
automatically triggered and a shareholders' meeting will be called
in which investors can decide to early amortize the transaction.

The upgrade also reflects the improved ability of CPTM, as a
company controlled by the State of Sao Paulo, to provide continued
train transportation services within Sao Paulo's metropolitan
region.  The ratings of the State of Sao Paulo were upgraded to
Baa3 from Ba2 (Global Scale Long-term Issuer Rating, Foreign
Currency) in November 29, 2010 and remain with a stable outlook.

Moody's performed a break-even analysis to assess the maximum
inflation rate (IPCA) that the transaction can support before
senior shareholders suffer losses.  For example, a 20% sudden
flat decrease of monthly cash collections, would require a
corresponding IPCA index increase to circa 10.3% per month for the
Senior Shares to experience a loss.  This is because the
transaction is maturing in 36 months and the DSCR is currently
robust at 4.40x.

The main uncertainty for the transaction is the inflation level in
Brazil.  The senior shares are adjusted according to the IPCA
index, while ticket fares and therefore collections may not
necessarily increase in the same amount as inflation.  However,
the risk is mitigated due to the robust DSCR that the transaction
enjoys and the relatively short time to maturity, as the break-
even analysis indicates.

Finally, Moody's also considered the continued importance of
CPTM's train system as a vital means of transportation for more
than 1.5 million commuters within Sao Paulo's metropolitan area.

Moody's Investors Service did not receive or take into account a
third-party due diligence report on the underlying assets or
financial instruments related to the monitoring of this
transaction in the past six months.


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


AC98 LIMITED: Shareholders' Final Meeting Set for April 13
----------------------------------------------------------
The shareholders of AC98 Limited will hold their final meeting on
April 13, 2011, at 11:00 a.m., to receive the liquidator's report
on the company's wind-up proceedings and property disposal.

The company's liquidator is:

         Trident Liquidators (Cayman) Limited
         c/o Mrs. Eva Moore
         Trident Trust Company (Cayman) Limited
         Telephone: (345) 949 0880
         Facsimile: (345) 949 0881
         P.O. Box 847, George Town
         Grand Cayman KY1-1103
         Cayman Islands


BUSHMILL INTERNATIONAL: Members to Hear Wind-Up Report on March 25
------------------------------------------------------------------
The members of Bushmill International Ltd. will receive on
March 25, 2011, at 12:00 noon, the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

         MBT Trustees Ltd.
         Telephone: 945-8859
         Facsimile: 949-9793/4
         P.O. Box 30622, Grand Cayman KY1-1203
         Cayman Islands


CONSTANCE LIMITED: Members to Hear Wind-Up Report on March 29
-------------------------------------------------------------
The members of Constance Limited will receive on March 29, 2011,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Buchanan Limited
         P.O. Box 1170, George Town, Grand Cayman
         Cayman Islands


EGL-3D HOLDINGS: Members to Hear Wind-Up Report on March 29
-----------------------------------------------------------
The members of EGL-3D Holdings Limited will receive on March 29,
2011, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

         Buchanan Limited
         P.O. Box 1170, George Town, Grand Cayman
         Cayman Islands


HALLIBURTON PRODUCTS: Members' Final Meeting Set for April 14
-------------------------------------------------------------
The members of Halliburton Products & Services Limited will hold
their final meeting on April 14, 2011, at 10:00 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Nadeem Ashfaq
         Halliburton Energy Services, Inc.
         10200 Bellaire Blvd.
         Houston, Texas 77072
         USA


MATTERHORN VENTURES: Shareholders' Final Meeting Set for April 5
----------------------------------------------------------------
The shareholders of Matterhorn Ventures SPC will hold their
final meeting on April 5, 2011, at 9:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Richard Finlay
         c/o Krysten Lumsden
         Telephone: (345) 814 7366
         Facsimile: (345) 945 3902
         P.O. Box 2681, Grand Cayman KY1-1111
         Cayman Islands


MCC INTERNATIONAL: Shareholders' Final Meeting Set for April 15
---------------------------------------------------------------
The shareholders of MCC International Holdings III, Ltd., will
hold their final meeting on April 15, 2011, at 8:30 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, Cayman Islands KY1 9002
         Cayman Islands


MCC INTERNATIONAL: Shareholders' Final Meeting Set for April 15
---------------------------------------------------------------
The shareholders of MCC International Holdings II, Ltd., will hold
their final meeting on April 15, 2011, at 8:45 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


MEDLEY MACRO: Shareholder to Hear Wind-Up Report on April 15
------------------------------------------------------------
The shareholder of Medley Macro Fund Ltd. will receive on
April 15, 2011, at 1:00 p.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

         Ogier
         c/o Danielle Walker
         Telephone: (345) 815-1880
         Facsimile: (345) 949-9877


MEDLEY MACRO: Shareholder to Hear Wind-Up Report on April 15
------------------------------------------------------------
The shareholder of Medley Macro Master Fund Ltd. will receive on
April 15, 2011, at 1:00 p.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

         Ogier
         c/o Danielle Walker
         Telephone: (345) 815-1880
         Facsimile: (345) 949-9877


PHILLIPS CAPITAL: Shareholder to Hear Wind-Up Report on March 25
----------------------------------------------------------------
The sole shareholder of Phillips Capital Ltd. will receive on
March 25, 2011, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

         Darryl Myers
         Telephone: +1 345 949 0699
         Facsimile: +1 345 949 8171
         c/o Thorp Alberga
         Harbour Place, 2nd Floor
         103 South Church Street, George Town
         Grand Cayman KY1-1106
         Cayman Islands


QUEENNIE LIMITED: Members to Hear Wind-Up Report on March 29
------------------------------------------------------------
The members of Queennie Limited will receive on March 29, 2011,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Buchanan Limited
         P.O. Box 1170, George Town, Grand Cayman
         Cayman Islands


RAVEN CREDIT: Shareholders' Final Meeting Set for April 15
----------------------------------------------------------
The shareholders of Raven Credit Opportunities Offshore Fund,
Ltd., will hold their final meeting on April 15, 2011, at
9:00 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


ROSANNA LIMITED: Members to Hear Wind-Up Report on March 29
-----------------------------------------------------------
The members of Rosanna Limited will receive on March 29, 2011, the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Buchanan Limited
         P.O. Box 1170, George Town, Grand Cayman
         Cayman Islands


RYADA MULTI-STRATEGY: Shareholders' Final Meeting Set for April 5
-----------------------------------------------------------------
The shareholders of Ryada Multi-Strategy Fund will hold their
final meeting on April 5, 2011, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Michael Pearson
         c/o Trudy-Ann Baines
         Deloitte
         P.O. Box 1787, Grand Cayman KY1-1109
         Cayman Islands


SILKSKY LIMITED: Members to Hear Wind-Up Report on March 29
-----------------------------------------------------------
The members of Silksky Limited will receive on March 29, 2011, the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Buchanan Limited
         P.O. Box 1170, George Town, Grand Cayman
         Cayman Islands


SINNAMARY INTERNATIONAL: Members' Final Meeting Set for April 21
----------------------------------------------------------------
The members of Sinnamary International Financing Corp. will hold
their final meeting on April 21, 2011, at 11:00 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Ian Stokoe
         c/o Adam Keenan
         Telephone: (345) 914 8743
         Facsimile: (345) 945 4237
         P.O. Box 258, Grand CaymanKY1-1104
         Cayman Islands


TUCK INVESTMENTS: Members to Hear Wind-Up Report on March 29
------------------------------------------------------------
The members of Tuck Investments Limited will receive on March 29,
2011, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

         Buchanan Limited
         P.O. Box 1170, George Town, Grand Cayman
         Cayman Islands


US BINNEY: Members to Hear Wind-Up Report on March 29
-----------------------------------------------------
The members of U.S. Binney Limited will receive on March 29, 2011,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Buchanan Limited
         P.O. Box 1170, George Town, Grand Cayman
         Cayman Islands


===============
C O L O M B I A
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ECOPETROL SA: S&P Raises Corporate Credit Rating From 'BB+'
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it raised its long-
term corporate credit rating and its senior unsecured debt rating
on Ecopetrol S.A. to 'BBB-' from 'BB+'.  The outlook is stable.

"The rating action follows the raising of S&P's foreign-currency
sovereign credit rating on the Republic of Colombia to 'BBB-' from
'BB+'," said Standard & Poor's credit analyst Jose Coballasi.

The rating on Ecopetrol is based on the company's stand-alone
credit profile, which S&P assess to be 'bb+', and on its opinion
that there is a high likelihood that the government of the
Republic of Colombia would provide timely and sufficient
extraordinary support to Ecopetrol in the event of financial
distress.

In accordance with S&P's criteria for government-related entities,
its view of a high likelihood of extraordinary government support
is based on its assessment of Ecopetrol's:

  a. very important role in the economy, Colombia's current 89.9%
     ownership in the company, Ecopetrol's position as the largest
     company in the country, and its position as the main supplier
     of oil-derived products in the local market; and

  b. strong link with the government, along with the company's
     clear corporate governance and independent management team.

The rating on Ecopetrol also reflects the company's leading
position in Colombia's oil and gas industry, increased production,
low production costs, and adequate liquidity.  It also considers
Ecopetrol's position relative to other national oil companies, its
exposure to commodity price volatility, and aggressive expansion
plans.

The stable outlook reflects S&P's outlook on Colombia.  The
outlook on Colombia incorporates its expectation of continuity in
key economic policies in the medium term, along with a stabilizing
debt burden because of good prospects for both GDP growth and
fiscal revenues.  The recent gains in public confidence resulting
from an improved security environment are likely to persist.  S&P
believes that Ecopetrol will continue to play a significant role
in the Colombian economy and keep operating as a profit-seeking
enterprise.  A positive rating action on Colombia could lead to a
positive rating action on Ecopetrol.  Ratings could be pressured
downward if Ecopetrol's stand-alone credit quality deteriorates
significantly.  This could result from a significant decrease in
production or financial performance being weaker than S&P expects.


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J A M A I C A
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DIGICEL GROUP: Claro Deal May Close in 2nd Quarter, Worries LIME
----------------------------------------------------------------
The RJR News reports that if the government approves Digicel Group
Limited's acquisition of America Movil's Claro business in
Jamaica, the deal could close in the second calendar quarter.

As reported by the Troubled Company Reporter-Latin America on
March 14, 2011, RadioJamaica said that Digicel signed the
agreement with America Movil.  The deal will also see Digicel
selling its business in El Salvador and Honduras to America Movil,
according to RadioJamaica.

"We have received the request letter from Digicel and Claro
jointly, and it is something that the government will have to
look at very keenly in terms of the current landscape (in
telecommunications sector).  In due course we will address it,"
The RJR News quoted Daryl Vaz, the Minister with responsibility
for Information, as saying.

The RJR News relates that telecommunication company LIME Jamaica
has asked the government, the Office of Utilities Regulations, and
the Fair Trading Commission to assess the deal.  LIME said that
assessment should be done before approval of the deal is given by
the relevant minister, the RJR News states.

The government should implement regulations to govern call
termination rates and cross network charges, to ensure the
preservation of a competitive landscape in the Jamaican telecoms
market for voice services, the Jamaica Observer reports, citing
the Opposition People's National Party.

According to the Jamaica Observer, Senator Mark Golding,
Opposition Spokesperson for Industry & Commerce said, "The
Opposition fears that with one mobile operator having a dominant
market position and enjoying an unregulated ability to set call
termination rates and cross network charges, the exit of Claro may
well signal the end of a competitive telecoms market for voice
services."

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


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M E X I C O
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FINANCIERA INDEPENDENCIA: Fitch Keeps 'BB-' Issuer Default Ratings
------------------------------------------------------------------
Fitch Ratings has affirmed Financiera Independencia's 'BB-' long-
term Issuer Default Ratings following the announcement that FINDEP
has completed the acquisition of its smaller competitor Apoyo
Economico Familiar and a U.S.-based entity named Apoyo Financiero
Inc. for a combined amount of MXN1.18 billion.  The ratings were
removed from Rating Watch Negative.  The Rating Outlook for the
long-term ratings is Stable.

In addition, Fitch affirmed the long- and short-term national
scale ratings of FINDEP at 'A(mex)'/'F1(mex)', as well as those of
its wholly owned subsidiary Financiera Finsol, S.A. de C.V. at
'BBB+(mex)'/'F2(mex)' with a Stable Outlook.

The acquired entities are small relative to FINDEP's size.
On a pro forma and consolidated basis, the integration of AEF
and AFI will expand FINDEP's loans and assets by 15% and 24%,
respectively, based on figures as of December 2010 (4Q'10).  Given
the proposed terms of the transactions (all cash) and the goodwill
arising, FINDEP's core capital ratio will deteriorate materially,
to roughly 15% from 27% on a pro forma basis.  However, Fitch
expects that FINDEP will partially rebuild this ratio to roughly
20% over the next two years, even considering the relatively
conservative earnings projections over that period.  Fitch
considers that current and projected capital ratios remain
consistent with FINDEP's risk profile and its rating level,
especially under a scenario of moderate dividend pay-outs.
Moreover, Fitch is also less concerned on other effects of the
acquisitions as compared to when these were announced in December
2010, since the impact on liquidity is moderate, execution risk
seems low, and the strategic value and profitability prospects of
the acquired entities are aligned to the relatively high premium
that FINDEP agreed to pay.  Fitch has also indicated in the past
that the integration of AEF and AFI could have some neutral or
slightly positive effects on consolidated asset quality and
business risk.

Fitch has affirmed these ratings with a Stable outlook:

FINDEP:

  -- Long-term foreign and local currency IDRs at 'BB-';

  -- Short-term foreign and local currency IDRs at 'B';

  -- US$200 million senior guaranteed notes due 2015 at 'BB-';

  -- National-scale long-term rating at 'A(mex)';

  -- National-scale short-term rating at 'F1(mex)';

  -- National-scale long-term rating for local issues of senior
     unsecured debt at 'A(mex)'.

Finsol:

  -- National-scale long-term rating at 'BBB+(mex)';
  -- National-scale short term rating at 'F2(mex)'.


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INKIA ENERGY: Fitch Assigns 'BB-' Issuer Default Rating
-------------------------------------------------------
Fitch Ratings has assigned a foreign and local currency Issuer
Default Rating of 'BB-' to Inkia Energy Ltd.  In addition, Fitch
has assigned a 'BB-' long-term rating to the company's proposed
US$300 million senior unsecured debt issuance.  The Rating Outlook
is Stable.

Proceeds from the expected issuance would be used to repay
approximately US$83 million of outstanding debt and fund an equity
contribution of approximately US$150 million into its Cerro del
Aguila power project, a 402 MW run of the river hydro electric
generation unit.  The balance of the funds will be kept in the
company to enhance liquidity.

The ratings are supported by the strength of the credit quality of
its most important subsidiary, Kallpa, which is a 561 MW Peruvian
thermoelectric generation company.  Inkia has a 75% participation
in Kallpa, whose credit quality is supported by its contractual
position and competitive cost structure.  Inkia's ratings also
incorporate the geographic diversification of its assets, large
expansion project and expected improvements in its financial
profile following the completion of these projects.

                 Credit Profile Linked to Kallpa

Kallpa's credit quality is supported by its competitive cost
structure and its contracted position.  Kallpa has entered into 34
power purchase agreements.  Combined, these PPAs amount to about
650MW of contracted capacity per year on average over the next 12
years.  These agreements add to cash flow stability and
predictability.  They are denominated in US$, reducing the
company's exposure to foreign exchange risk, as the bulk of the
company's debt is denominated in the same currency.

The company is currently undergoing an expansion project, which
will strengthen its financial profile.  The expansion will
increase installed capacity to 854 MW from 566 MW through the
installation of a 288 MW combined cycle unit.  This project is
scheduled to be completed in 2012 and will conclude the final
phase of the construction at this facility which began production
in 2007 with an initial capacity of 184 MW.  The project is fully
funded.

Following completion, Kallpa will represent approximately 40% of
cash flow to the holding company and more than half of
consolidated EBITDA; EBITDA should increase by approximately
US$100 million to US$150 million and decrease leverage at this
subsidiary to between 2.5 - 3.0 times.
High Proforma Leverage

Inkia's pro forma stand alone financial profile is currently weak
for the rating category.  Following the debt issuance and equity
infusion, representing 75% equity interest, into the Cerro del
Aguila project, proforma consolidated leverage is expected to
increase to approximately 5.1 times, excluding non-recourse
project finance debt at the Cerro level.  The Cerro project is
expected to cost US$700 million and is expected to be funded with
non-recourse project-like debt and equity contribution from Inkia
and its partner.  In 2012, consolidated leverage, excluding Cerro,
is expected to improve to approximately 3.5 times as Kallpa enters
commercial operation.

As of Dec. 31, 2010, Inkia's consolidated EBITDA (plus dividends)
and funds from operations were US$130 million and US$71 million,
respectively.  Inkia had a total consolidated debt of
US$580 million as of Dec. 31, 2010.  After giving equity credit
to a US$177 million intercompany loan, from parent, Israel Corp.,
Inkia's adjusted debt is US$403 million resulting in a leverage
ratio, as measured by total debt with equity credit to EBITDA
(plus dividends), of 3.1x.

                   Adequate Liquidity Position

Inkia's liquidity position is adequate.  As of Dec. 31, 2010,
the company's consolidated cash position amounted to
US$120 million, of which US$39 million was at the holding company
and US$81 million was at consolidated subsidiaries, US$40 million
of which was at Kallpa to fund the combined cycle expansion
project.  Restricted cash amounted to US$7 million.  The company's
liquidity position is supported by dividends and disbursements,
ranging between US$20 million and US$30 million, from its
different subsidiaries as well as by readily monetizable assets.
Inkia owns 21% of Edegel, which is the largest generation company
in Peru with a current market capitalization of approximately
US$1.6 billion.

The company also benefits from favorable access to the local
capital markets to finance investment projects at the
subsidiaries' level.  Currently, the company has been able to
secure 100% of the required funds to finance Kallpa's combined
cycle expansion by issuing debt in the local market and raising
committed equity through partners.  The holding company also
benefits from the financial flexibility provided by its
intercompany debt as it does not carry a fixed amortization
schedule and does not share collateral (shares on assets) with
Inkia's bonds.

Asset Diversification:

Inkia's ratings also take into consideration the company's
geographic diversification.  Excluding its Peruvian operations,
the company generated over 50% of its 2009 consolidated EBITDA
(plus dividends) from assets located in Bolivia (rated 'B+' by
Fitch), the Dominican Republic (rated 'B' by Fitch), Jamaica
(rated 'B-' by Fitch), and El Salvador (rated 'BB' by Fitch).
Over the next two years, cash flow from these assets will be of
strategic importance for Inkia, until the Kallpa expansion is
completed and begins to distribute dividends (second half of
2012).

The consolidated credit metrics of Inkia should continue to be
characterized by relatively high leverage ratios in the medium
term, as the company continues its expansion strategy and finances
growth with debt both at project level and holding company level.
On a stand alone basis, Inkia's holding company credit metrics
will improve to levels consistent with the assigned rating once
the current conversion to a combined cycle plant at Kallpa enters
commercial operations.

                  Debt Structurally Subordinated

Inkia's debt is structurally subordinated to debt at the operating
companies.  As of Sept. 30, 2010, total debt at the subsidiary
level amounted to approximately US$300 million or 75% of
consolidated adjusted debt.  The bulk of this debt is represented
by notes issued by Kallpa to fund the capacity expansion.  This
project-finance like debt that has a standard covenants package
including dividend restrictions and limitations on additional
indebtedness.  Specifically, Kallpa is restricted from making
dividend payments to Inkia if its debt service coverage ratio
falls below 1.2 times.  Fitch's expects Kallpa's DSCR to reach its
lowest point in 2014 at 1.5x.

                         Rating Drivers

A negative rating action could be triggered by a combination of
these factors; leverage does not moderate at Kallpa after it
completes its combined cycle expansion project; Inkia pursues
additional opportunities in generation without an adequate amount
of additional equity; or the company's asset portfolio becomes
more concentrated in countries with high political and economic
risk.

Although a positive rating action is not expected in the near
future, any combination of this factor could be considered; the
Peruvian operation's cash flow contribution increases beyond
current expectations; and/or leverage declines materially.

Inkia is an energy holding company incorporated in Bermuda in 2007
by Israel Corp. with the purpose of acquiring Globeleq Americas
Ltd's electric generation assets in Latin America.  Israel Corp.'s
total investment in Inkia amounted to approximately US$543 million
and was financed with equity and intercompany loans for the most
part.  Inkia holds majority (4) and minority (3) participations on
seven electricity generating companies located in six Latin
American countries.  Inkia owns approximately 75% of Kallpa energy
and holds a 21% stake on Edegel S.A.A.


INKIA ENERGY: Moody's Assigns 'B1' Corporate Family Rating
----------------------------------------------------------
Moody's Investors Service has assigned a B1 Corporate Family
Rating and a FC B1 senior unsecured debt rating on the Global
Scale to Inkia Energy Ltd's planned issuance of up to
US$300 million of senior unsecured notes to be issued under a
144(A) registration.  This is the first time Moody's has rated
Inkia.  The rating outlook is stable.

                        Ratings Rationale

The B1 CFR and senior unsecured debt rating reflects Moody's
assessment of Inkia's historical and projected consolidated credit
metrics, which Moody's believe position the company at the upper
end of the B-rating category for unregulated power companies.
Over the last three years, Moody's calculates that the company's
cash flow before working capital changes (CFO pre-W/C) and cash
flow coverage of interest expense were below 12% and 3.0x,
respectively, while the company experienced negative free cash
flow due principally to various capital investment programs.
Prospectively, Moody's believes that these financial metrics will
trend downward through 2012, as the company completes its multi-
year construction program at Kallpa, a Peruvian based generation
subsidiary, which is converting its existing open-cycle natural
gas facility (consisting of three turbines) to a combined-cycle
plant configuration (CC conversion).  The company anticipates the
CC conversion will be completed during 2012 which should not only
improve the plant's operating efficiency but also its competitive
position in the Peruvian power market.  Over this timeframe of
continuing negative free cash flow, Moody's anticipate that the
ratio of CFO pre-W/C to debt will average in the mid-to-high
single digits with CFO pre-W/C coverage of interest expense of
approximately 2.5x.  Moody's notes that Inkia has committed
subsidiary level financing arrangements at the Kallpa level, which
will help fund this negative free cash flow.

While the rating incorporates the importance of the Peruvian
subsidiaries including not only the future expected cash flows
from Kallpa but also from its 21.1% economic interest in Edegel,
the largest generator in Peru, the rating also acknowledges the
asset concentration that exists at Kallpa which is somewhat
balanced with the geographic diversity of Inkia's cash flow stream
from its investments in other Latin American and Caribbean
countries.  The rating recognizes the predictability of Kallpa's
future cash flows, which is underpinned by the existence of Power
Purchase Agreements for the bulk of its available energy that
include certain cost indexation clauses, which help to mitigate
the impact of substantial variations in certain costs such as fuel
that the company may experience over the life of the PPAs.

The B1 rating also considers the degree of structural
subordination that exists at Inkia as a holding company and its
full reliance on its subsidiaries' dividend distributions to
service its debt.  In particular, the rating points to the fact
that Kallpa, the most important Inkia subsidiary, is not
anticipated to provide dividends to Inkia while the CC conversion
is being completed, and that Inkia's access to cash payouts from
its other prominent cash flow contributor, Edegel, is limited
until the outstanding bonds of its indirect intermediate parent
holding-company subsidiary, Southern Cone Power Peru S.A.  become
due in 2012.  Therefore, Inkia bondholders will further rely over
the near to medium term upon dividends for debt service and other
holding company obligations from a variety of smaller
subsidiaries.  While annual holding company needs are expected to
be relatively modest and Moody's anticipate internal sources of
holding company liquidity to remain adequate, the increased
reliance on the smaller and less predictable subisidaries for debt
service over this timeframe is a constraining factor in this
rating assignment.  Beginning in 2013, Moody's anticipates SCPP
and Kallpa will be able to provide meaningful cash flow
contributions to the parent beginning in 2013, once Kallpa's CC
conversion is completed and SCPP's bonds mature.

The B1 rating further considers the company's fairly sizeable
growth and development strategies currently centered around the
construction of Cerro del Aguila, a 402 megawatt hydro project,
planned to be completed in 2015.  While the company's future
performance may benefit from the construction of this cost-
competitive asset, Moody's observe that Inkia's management has
limited project development expertise, particularly as it relates
to the construction of a multi-year hydro project.  Moreover,
Moody's has limited insights into other potential investment
projects that Inkia's management may pursue outside of the Cerro
project.

The rating acknowledges Inkia's parent company Israel
Corporation's sizeable capital commitment to help fund Inkia's
growth and development; however, such support is balanced by
Moody's understanding of the terms and conditions of the
shareholder loans between IC and Inkia, which Moody's consider to
be somewhat akin to subordinated debt-like obligations in Moody's
rating assessment of Inkia.  That being said, Moody's observe that
the terms and conditions of the unsecured notes limit, among
others things, the incurrence of additional debt and place
restrictions on payments to the shareholder (both dividends and
payments under the shareholder loans) which enhances Inkia's
financing flexibility, particularly through 2012.

Proceeds of this offering are expected to be used for the
repurchase of Inkia's outstanding Nuevos-soles 9.25% senior
secured bonds due in 2015 (about US$82.8 million), for working
capital purposes, to finance its expected equity contribution in
Cerro and for other projects and acquisitions that the company may
pursue in the future.

Moody's has reviewed preliminary draft legal documentation for the
proposed senior unsecured notes and the assigned rating assumes
that there will be no material variation from the draft reviewed
and that all agreements will be legally valid, binding and
enforceable.

The stable rating outlook reflects Moody's opinion that Inkia's
rating is likely to remain well positioned within the B-rating
category based upon Moody's expectations for future consolidated
credit metrics over the next few years, particularly, with the CC
conversion project well underway at Kallpa, the related dividend
limitations that are expected to persist during this timeframe,
and an anticipated increase in consolidated indebtedness
associated with the funding of new growth projects such as Cerro.

Inkia's ratings could see some positive momentum after completion
of the CC conversion expansion and receipt of some steady dividend
distributions from this critical subsidiary.To that end, once the
Kallpa CC conversion nears completion, a positive rating action
could surface if, as Moody's expect, Inkia's consolidated credit
metrics (including any new project finance debt) improve such that
cash flow coverage of interest expense, cash flow to debt and
retained cash flow to achieve levels in excess of 2.5x, 13% and
8%, respectively, on a sustainable basis.  Additionally, any
improvement in Inkia's consolidated financial performance will be
balanced against Moody's assessment of the company's growth and
development initiatives underway at that time.

Complications in the completion of Kallpa's combined cycle
expansion program, and/or political or operational problems at
some of the other key subsidiaries that result in a material
deterioration in the anticipated dividend distributions to Inkia
and/or in the consolidated credit metrics could put downward
pressure on the ratings.  Specifically, if Inkia reports
consolidated cash flow to debt, and RCF to debt below 7% and 3%,
respectively, and cash flow interest coverage of less than 1.5x,
on a sustainable basis.

Headquartered in Lima, Peru, Inkia is an international holding
company incorporated in Bermuda that holds ownership stakes in
power generation companies in Peru (Government bond rating: Baa3,
stable), Bolivia (Government bond rating: B1, positive), Dominican
Republic (Government bond rating: B1, stable), El Salvador
(Government bond rating: Ba1, negative), Jamaica (Government bond
rating: B3, stable) and Panama (Government bond rating: Baa3,
stable).  Inkia has net ownership of 1,191MW (adjusted to account
for its proportional ownership interest) of effective generation
capacity.  At year-end 2010, Inkia reported consolidated assets of
around US$1.2 billion and cash flow from operations of around
US$104 million.


                            ***********


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. 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.

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