TCRLA_Public/120521.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, May 21, 2012, Vol. 13, No. 100


                            Headlines



A R G E N T I N A

CUEROFLEX SA: Creditors' Proofs of Debt Due July 10
FELTA SA: Creditors' Proofs of Debt Due May 24
MASIERO INDUSTRIAL: Creditors' Proofs of Debt Due Sept. 3


B R A Z I L

SUZANO PAPEL: Equity Offering No Impact on Moody's 'Ba2' CFR


C A Y M A N   I S L A N D S

GSW HOLDINGS: Shareholders' Final Meeting Set for June 8
MAN LEGENDS: Members' Final Meeting Set for May 28
MAN LONG: Members' Final Meeting Set for May 28
OFFSHORE WAVE: Creditors' Proofs of Debt Due June 7
RAIL SYNDICATE ONE: Creditors' Proofs of Debt Due June 6

RAIL SYNDICATE TWO: Creditors' Proofs of Debt Due June 6
SANDA KAN (CAYMAN I): Creditors' Proofs of Debt Due June 6
SANDA KAN (CAYMAN II): Creditors' Proofs of Debt Due June 6
VITA CAPITAL: Creditors' Proofs of Debt Due May 28


E L  S A L V A D O R

* EL SALVADOR: S&P Keeps 'BB-' Sovereign Credit Rating


J A M A I C A

DIGICEL GROUP: Not in Compliance With Licenses, Commission Says
PALMYRA RESORT: Plan to Sell Resort Through Auction Fails


M E X I C O

AXTEL SAB: S&P Cuts Corp. Credit Rating to 'B-'; Outlook Negative
CERVECERIA Y MALTERIA: Fitch Withdraws 'BB+' Rating of IDR
GRUPO SENDA: Fitch Raises Rating on US$150MM Secured Notes to 'B'
METROFINANCIERA CONSTRUCTION: S&P Cuts Rating on Class A to 'mxD'
SU CASITA: Fitch Downgrades Nat'l Long-Term Rating to 'CC(mex)


N I C A R A G U A

* NICARAGUA: IDB Supports Pilot Housing Program


P U E R T O   R I C O

ANGEL MARTINEZ: 1st Circuit BAP Affirms Ch. 11 Case Dismissal


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Fitch to Rate $3BB Issuance at 'B+/RR4'


X X X X X X X X

* BOND PRICING: For the Week May 14 to May 18, 2012




                            - - - - -


=================
A R G E N T I N A
=================

CUEROFLEX SA: Creditors' Proofs of Debt Due July 10
---------------------------------------------------
Estudio J. Ulnik y Asociados, the court-appointed trustee for
Cueroflex SA's bankruptcy proceedings, will be verifying
creditors' proofs of claim until July 10, 2012.

The Trustee will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 13 in Buenos Aires, with the assistance of Clerk
No. 26, 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:

         Estudio J. Ulnik y Asociados
         Maipu 509
         Argentina


FELTA SA: Creditors' Proofs of Debt Due May 24
----------------------------------------------
Claudio Jorge Haimovici, the court-appointed trustee for Felta
SA's bankruptcy proceedings, will be verifying creditors' proofs
of claim until May 24, 2012.

The Trustee will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 2 in Buenos Aires, with the assistance of Clerk
No. 3, 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:

         Claudio Jorge Haimovici
         Maipu 267
         Argentina


MASIERO INDUSTRIAL: Creditors' Proofs of Debt Due Sept. 3
---------------------------------------------------------
Juan Jose Roberto Esturo, the court-appointed trustee for Masiero
Industrial SA's bankruptcy proceedings, will be verifying
creditors' proofs of claim until Sept. 3, 2012.

The Trustee will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 22 in Buenos Aires, with the assistance of Clerk
No. 44, 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:

         Juan Jose Roberto Esturo
         Reconquista 336
         Argentina


===========
B R A Z I L
===========


SUZANO PAPEL: Equity Offering No Impact on Moody's 'Ba2' CFR
------------------------------------------------------------
Moody's Investors Service commented on May 17 that Suzano Papel e
Celulose S.A.'s Ba2/Aa3.br corporate family ratings are unaffected
by the BRL1.5 billion equity offer announced this week. Suzano
announced a new stand-by credit facility in the amount of BRL2
billion as well. Both transactions are credit positive because
proceeds will improve liquidity and leverage profile of the
company.

The equity offer is part of company's plans to reduce leverage and
increase liquidity at a time of Suzano has embarked on a major
capital expenditures program. Moody's estimated that with the new
equity offer, Suzano's adjusted leverage (measured by total
adjusted debt to Ebitda) will decrease to 6.1x from 7.4x.
Additionally to the offer, the company has announced it entered
into a stand-by BRL2 billion credit facility with BTG Pactual
(Baa3/stable), which will help improve liquidity. Both
announcements will enhance Suzano's credit profile though offset
by the current weak pulp market.

Suzano Papel e Celulose, headquartered in Salvador -- Brazil, is a
leading low-cost producer of bleached eucalyptus market pulp,
printing and writing paper and paperboard with consolidated net
revenues of BRL4.8 billion (about US$2.5 billion) in the last
twelve months ended on March 31, 2012. The sales mix (55% pulp and
45% paper in volume terms) gives the company cash flow stability
due to the different supply-demand-price dynamics in the pulp
(USD-linked) and paper (BRL-linked) business. The company benefits
from its vertical integration and almost complete self-sufficiency
in wood and energy.


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


GSW HOLDINGS: Shareholders' Final Meeting Set for June 8
--------------------------------------------------------
The shareholders of GSW Holdings Limited will hold their final
meeting on June 8, 2012, 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 KY1-9002
         Cayman Islands
         c/o Jennifer Chailler
         Telephone: (345) 814 6847


MAN LEGENDS: Members' Final Meeting Set for May 28
--------------------------------------------------
The members of Man Legends EUR (Feeder) SPC will hold their final
meeting on May 28, 2012, to receive the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

         Beverly Mathias
         c/o Citco Trustees (Cayman) Limited
         P.O. Box 31106 Grand Cayman KY1-1205
         Cayman Islands


MAN LONG: Members' Final Meeting Set for May 28
-----------------------------------------------
The members of Man Long Short Equity US (Master) Ltd will hold
their final meeting on May 28, 2012, to receive the liquidator's
report on the company's wind-up proceedings and property disposal.

The company's liquidator is:

         Beverly Mathias
         c/o Citco Trustees (Cayman) Limited
         P.O. Box 31106 Grand Cayman KY1-1205
         Cayman Islands


OFFSHORE WAVE: Creditors' Proofs of Debt Due June 7
---------------------------------------------------
The creditors of Offshore Wave Fund, Ltd. are required to file
their proofs of debt by June 7, 2012, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on April 12, 2012.

The company's liquidator is:

         Walkers Corporate Services Limited
         Walker House, 87 Mary Street, George Town
         Grand Cayman KY1-9005
         Cayman Islands
         c/o Jennifer Chailler
         Telephone: (345) 814 6847


RAIL SYNDICATE ONE: Creditors' Proofs of Debt Due June 6
--------------------------------------------------------
The creditors of Rail Syndicate One Ltd. are required to file
their proofs of debt by June 6, 2012, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on April 18, 2012.

The company's liquidator is:

         Peter Anderson
         c/o Omar Grant
         Telephone: (345) 949 7576
         Facsimile: (345) 949 8295
         P.O. Box 897 Windward 1
         Regatta Office Park
         Grand Cayman KY1-1103
         Cayman Islands


RAIL SYNDICATE TWO: Creditors' Proofs of Debt Due June 6
--------------------------------------------------------
The creditors of Rail Syndicate Two Ltd. are required to file
their proofs of debt by June 6, 2012, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on April 18, 2012.

The company's liquidator is:

         Peter Anderson
         c/o Omar Grant
         Telephone: (345) 949 7576
         Facsimile: (345) 949 8295
         P.O. Box 897 Windward 1
         Regatta Office Park
         Grand Cayman KY1-1103
         Cayman Islands


SANDA KAN (CAYMAN I): Creditors' Proofs of Debt Due June 6
----------------------------------------------------------
The creditors of Sanda Kan (Cayman I) Holdings Company Limited are
required to file their proofs of debt by June 6, 2012, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on April 24, 2012.

The company's liquidator is:

         Ian D. Stokoe
         c/o Prue Lawson
         Telephone: (345) 914 8662
         Facsimile: (345) 945 4237
         PO Box 258 Grand Cayman KY1-1104
         Cayman Islands


SANDA KAN (CAYMAN II): Creditors' Proofs of Debt Due June 6
-----------------------------------------------------------
The creditors of Sanda Kan (Cayman II) Holdings Company Limited
are required to file their proofs of debt by June 6, 2012, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on April 23, 2012.

The company's liquidator is:

         Ian D. Stokoe
         c/o Prue Lawson
         Telephone: (345) 914 8662
         Facsimile: (345) 945 4237
         PO Box 258 Grand Cayman KY1-1104
         Cayman Islands


VITA CAPITAL: Creditors' Proofs of Debt Due May 28
--------------------------------------------------
The creditors of Vita Capital III Ltd are required to file their
proofs of debt by May 28, 2012, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on April 25, 2012.

The company's liquidators are:

         Beverly Bernard
         Alex Johnston
         P.O. Box 1109 Grand Cayman KY1-1102
         Cayman Islands
         c/o Beverly Bernard
         Telephone: 949-7755
         Facsimile: 949-7634



====================
E L  S A L V A D O R
====================


* EL SALVADOR: S&P Keeps 'BB-' Sovereign Credit Rating
------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BBB-' long-term
and 'A-3' short-term issuer credit ratings (ICR) on Banco
Davivienda S.A. and removed them from CreditWatch with negative
implications, where it placed them placed on Jan. 25, 2012. The
outlook is stable.

"The rating action follows our assessment of the acquisition's
impact on Davivienda's earnings and capital, which we consider
will remain 'moderate' in the intermediate term and will represent
the bank's main weakness. We expect this transaction to be
completed by the fourth quarter of 2012, subject to the countries'
regulatory approval," S&P said.

"Even though the acquisition would result in Davivienda's
penetration of lower-rated countries--El Salvador (BB-/Stable/B),
Costa Rica (BB/Stable/B), and Honduras (B/Positive/B)--the bank's
anchor would remain at 'bbb-'," S&P said.


=============
J A M A I C A
=============


DIGICEL GROUP: Not in Compliance With Licenses, Commission Says
---------------------------------------------------------------
The Royal Gazette reports that the Telecoms Commission has advised
the Jamaica government that it has found Digicel Group Limited and
Transact are not in compliance with their licenses.

But Minister of Environment, Planning and Infrastructure Strategy
Marc Bean has told the Commission that before he makes any
decision in the case he needs more information on how it reached
its findings, according to The Royal Gazette.

The report relates that the Minister is under no obligation to
take the advice of the Commission.  In any event, Digicel Group
has indicated it will likely seek a ruling from the courts in the
dispute, The Royal Gazette notes.

The Royal Gazette discloses that the Commission was asked back in
December to look into whether the international long distance
service that Digicel and sister company Transact launched was in
compliance with the terms and conditions of their licenses.

The Royal Gazette says that chaired by Ronald Simmons, the
Commission said that having considered written and oral
submissions, it "finds that the actions of Digicel and Transact
are not in compliance with the respective licences they currently
hold".

The report relays that the Commission said: "Specifically: No
interconnection agreement between Digicel and Transact has been
approved by the Commission as required. Therefore, no traffic can
legally be shared between the two companies. . . . Transact is
accepting traffic from a Class B carrier, which is in
contravention of Condition 3 of its license. . . . Digicel is
required by its license to pass its International Long Distance
voice traffic directly to a Class A carrier. . . . The evidence
shows that Digicel is passing its International Long Distance
voice traffic to a Class C Carrier, which is in contravention of
Condition 4 of its license.  The Commission notes that
historically Digicel has followed this condition, demonstrating
that it was aware of the terms of its licenses."

The Royal Gazette discloses that Minister Bean wrote to the
Commission on May 10, that "regrettably, these reports do not
position me to evaluate this matter fully as the reports do not
set out the reasons for the Commission's findings . . . . "In
order for me to consider the recommendations of the Commission
fully, it is therefore necessary that the Commission, as soon as
possible inform me of the basis upon which its findings were made,
the evidence relied upon and the facts used to justify its
findings."

Digicel said in response: "We do not accept the findings which are
seriously flawed in fact and law and indeed the Commission has
addressed matters that were never included in their terms of
reference or addressed at any stage of the hearing. . . . In any
event, this matter is before the Supreme Court on May 29 and will
be resolved conclusively by the Court," The Royal Gazette adds.

                        About Digicel Group

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 Group has become a leading brand
across its 31 markets worldwide.

Digicel is based in Jamaica.  It 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. Barts.  Digicel Pacific
comprises Fiji, Papua New Guinea, Samoa, Tonga and Vanuatu.

                      *     *     *

As of September 27, 2011, the company continues to carry Moody's
"Caa1" senior unsecured debt rating.


PALMYRA RESORT: Plan to Sell Resort Through Auction Fails
---------------------------------------------------------
Jamaica Gleaner, citing sources, reports that plans to sell the
Palmyra Resort & Spa at auction have failed despite two extensions
on the original sealed-bid deadline.

The Financial Gleaner has learned that Palmyra receiver Ken
Tomlinson has switched to Plan B and is now hoping to sell the
16-acre beachfront property via private treaty, according to
Jamaica Gleaner.

The report notes that Racebrook Marketing Concepts was initially
hired to auction the property, and while the international
marketing firm said there was early investor interest from Asia,
Australia, Canada, the United States, South America, Europe and
the Caribbean, the deadline for sealed bids was pushed back from
March 28 to April 18, and later to April 23.

At the first postponement, Racebrook Marketing said it would give
bidders more time for due diligence and preparation of their bids,
Jamaica Gleaner discloses.

Steve Madury of Racebrook Marketing relays that referred queries
back to Tomlinson when asked why the property was pulled from the
auction block.

However, Jamaica Gleaner notes that well-placed sources said no
viable offers were received and that Tomlinson has now taken over
negotiations with "a number" of interested investors.

Palmyra is an incomplete development that was taken over by its
bankers last year and placed in receivership, Jamaica Gleaner
discloses.

Jamaica Gleaner says that the owners of the project fell into
arrears on US$110 million of principal loans -- US$22 million of
which was financed by RBC Royal Bank Jamaica, while the other
US$88 million is held by National Commercial Bank and its
investment arm NCB Capital Markets as well as bondholders.

The financing was structured by NCB's corporate banking unit.  The
current size of the Palmyra's debt has not been disclosed but it
was partly responsible for a spike in loan losses at NCB, whose
provisions for bad debt were JM$5.6 billion in the March quarter
or just about half the total provisions by the entire commercial
banking sector, Jamaica Gleaner notes.

Robert Trotta, who was the lead investor in the condominium
project, is said to be among the parties with whom Tomlinson is in
discussion. There is also talk that Trotta and NCB are otherwise
trying to reach a deal, Jamaica Gleaner relays.
bidders.

The property usually remains on the market until the sale contract
is signed, Jamaica Gleaner adds.

The Palmyra, which is located at Rose Hall in Montego Bay, is a
288-room hotel/condominium complex encompassing three towers, two
of which were completed.  It has 103 owners of individual condos,
with 97 units remaining for sale on the completed blocks, the
Sabal Tower and Silver Tower.  The shell of a high-rise hotel
designed for 88 studio suites, called Sentry Tower, and 11 three-
bedroom villas are at varying stages of completion.


===========
M E X I C O
===========


AXTEL SAB: S&P Cuts Corp. Credit Rating to 'B-'; Outlook Negative
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating on Axtel S.A.B de C.V. to 'B-' from 'B'. "At the
same time, we lowered the rating on the company's senior unsecured
notes to 'B-' from 'B', and the recovery rating of '3' on the
notes, indicating the expectation of meaningful (50%-70%) recovery
in the event of payment default, remains unchanged. The outlook is
negative," S&P said.

"The downgrade reflects the company's deteriorating competitive
position and a weaker-than-expected financial performance for the
first quarter of 2012, which is still commensurate with an
aggressive financial profile. Axtel's international traffic
segment revenues dropped 26% due to pricing pressures from tough
competition, which were not in line with our expectations.
Additionally, we are concerned about Axtel's ability to compete
with its larger and better capitalized peers," S&P said.


CERVECERIA Y MALTERIA: Fitch Withdraws 'BB+' Rating of IDR
----------------------------------------------------------
Fitch Ratings has affirmed and simultaneously withdrawn the 'BB+'
foreign currency and local currency Issuer Default Ratings
assigned to Cerveceria y Malteria Quilmes S.A.I.C.y G. (CMQ).  The
company prepaid all its outstanding capital markets debt.  Fitch
will no longer provide coverage for CMQ.


GRUPO SENDA: Fitch Raises Rating on US$150MM Secured Notes to 'B'
-----------------------------------------------------------------
Fitch Ratings has upgraded Grupo Senda Autotransporte, S.A., de
C.V.'s local and foreign currency Issuer Default Ratings (IDRs)
and its USD150 million senior secured guaranteed notes due in 2015
as follows:

  -- Foreign currency Issuer Default Rating (IDR) to 'B' from
     'B-';
  -- Local currency IDR to 'B' from 'B-';
  -- USD150 million secured guaranteed notes due in 2015 to
     'B/RR4' from 'B-'/RR4'.

The Rating Outlook is Stable.

The upgrade reflects the positive trend in the company's operating
performance coupled with an important business deleveraging during
the last 24-month (LTM) period ended in March 2012.

The Stable Outlook incorporates the expectation that during the
next 12-month period ending in March 2013 Grupo Senda will
maintain a stable credit profile.  The Stable Outlook also
reflects the view that the wave of violence affecting several
Mexican states will not interrupt the stable trend in the
company's operating results during 2012.  Fitch expects the
company will close 2012 with an EBITDA margin at around 22%.  The
company's gross leverage is expected to remain stable around 3x,
and free cash flow (FCF) generation is anticipated to be neutral
during 2012 as Grupo Senda should implement its capex plan without
increasing current debt levels. Liquidity is expected to remain
fragile with significant levels of debt payments scheduled for the
next 24 months relative to its cash position.

Grupo Senda's ratings reflect the company's leading market
position in the highly competitive and fragmented intercity bus
passenger transportation sector in Mexico, moderate leverage,
limited FCF generation, and weak liquidity resulting from its
significant dependence on external liquidity to fund debt
maturities during the next 24 months ending in March 2014.  The
'B/RR4' ratings on the company's public debt reflect average
recovery prospects given default. Grupo Senda's ratings also
incorporate the company's exposure to foreign exchange risk, as
90% of its revenues are in Mexican pesos and approximately 70% of
its debt is denominated in U.S. dollars.

The ratings also incorporate industry-related risks such as
seasonal fluctuations in passengers, cyclicality risk affecting
the personnel segment, and volatile fuel costs.  Positively, the
company benefits from the importance of bus transportation within
Mexico, which results from income constraints that limit the
ability of many people to use more expensive alternative means of
transportation, such as automobiles or airlines.

Stable Operational Results Reflect Focus on Route Rationalization:

Grupo Senda's cash flow generation, measured by EBITDA, totaled
MXN766 million, MXN813 million, and MXN840 million, during 2010,
2011, and LTM March 2012, respectively, consolidating its recovery
from 2009, when the company reached an EBITDA of MXN528 million.
The ratings incorporate the view that Grupo Senda's EBITDA margin
will remain stable at around 22% during 2012.

EBITDA improvement and stabilization was driven primarily by the
company's route rationalization strategy implemented during LTM
March 2012, which was reflected in lower kilometer (KM) per bus
levels of 23,930; 22,705; and, 21,696 during third quarter
2011,(3Q'11), 4Q'll, and 1Q'12, respectively; representing
declines of 13%, 19%, and 16% over the same quarter of the prior
year.  The company's more conservative capacity management
resulted in an improving level of its operating margin per bus,
reaching MXN43,797, MXN55,505; MXN56,302; and MXN34,721, during
the 2Q11, 3Q'11, 4Q'11, and 1Q'12, and representing changes of
15.1%, 31.7%, (10.7%) and 32.0%, respectively, over the same
quarters of the prior year.  The decline in 4Q'11 operating margin
per bus primarily reflects the 10.8% increase in diesel prices
over the same quarter of the prior year.  The route
rationalization efforts follow and complement the improvement in
the company's average ticket price per KM, which increased 26% and
13% during the periods of LTM September 2010 and LTM September
2011, respectively.

Gross Leverage Expected to Be around 3.0x by End of 2012:

Grupo Senda's leverage has remained stable; the recent
developments in the company's gross leverage mirror the trending
in its operations taking place during the last 24-month period
ended in March 2012.  Grupo Senda's gross leverage, measured by
total debt/EBITDA, has declined, falling to 5.5x, 3.6x, and 3.4x
by the end of December 2009, March 2011, and March 2012,
respectively.  Fitch expects the company to manage its balance
sheet with total debt-to-EBITDA around 3.0x during the next 12
months ended in March 2013.  By the end of March 2012, on-balance-
sheet debt totaled MXN2,880 million (USD225 million), which
primarily consists of the corporate bonds (MXN1,921 million, or
USD150 million), financial leases (MXN776 million, or USD61
million), and revolving facilities with local banks (MXN183
million, or USD14 million).  By the end of March 2012, the company
has no off-balance-sheet debt under operating leases.

Failure to Improve Liquidity Incorporated; Remains Main Credit
Concern:

The company failed to improve its liquidity position during 2011.
By the end of March 2012, the company's liquidity remains weak and
continues to have a high dependency on third parties to cover its
liquidity position as well as roll over short-term debt.  As of
March 2012, the company's debt payments due during 2012 and 2013
totaled MXN650 million, including revolving credit lines of MXN132
million, while its cash position was MXN175 million, covering only
40% of its short-term debt and representing 4.6% of its LTM
revenues or 17 days of operations, which is considered very
fragile and remains the weakest aspect of the company's credit
profile.

The ratings incorporate the view that Grupo Senda's liquidity
position will not materially improve during the next 12 months
ended in March 2013, as the company's financial strategy should
continue to be based on rolling over its short-term debt, while
trying to achieve a major refinancing during the 2013-14 period
through the combination of an international issuance and/or a
syndicated bank loan.

Limited FCF Generation Driven by Capex, Neutral FCF in 2012:

During LTM March 2012, the company's FCF was negative at MXN43
million; this level of negative FCF represents 1.2%, and 27% of
the company's LTM revenue and cash position at the end of March
2012, respectively.  The company's FCF calculation for the period
considers cash flow from operations -- after interest paid -- of
MXN287 million less capital expenditures of MXN330 million. During
2012, FCF is expected to be neutral as the company is planning a
MXN250 million capex program -- recently revised by the management
-- to acquire new buses, which should be primarily funded with its
own cash flow from operations.  The company's total debt is not
expected to increase during 2012.  The ratings do not incorporate
the impact on the company's credit quality of the execution of any
specific project with local governments, since management has
stated that this decision has been delayed due to the election
process taking place in Mexico during this year.  If the company
decides to resume its plans to develop any specific project that
represents an additional business segment its impact in the
company's credit quality (margin, leverage, and liquidity) will be
incorporated after full information is disclosed.

Rating Drivers:

A negative rating action could be triggered by a combination of
the following: deterioration of the company's credit protection
measures due to sizeable negative FCF driven by poor operational
results and/or unexpected capex levels funded with short-term
debt.  Expectations by Fitch of total adjusted debt-to-EBITDA
consistently at 4.5x will likely result in a downgrade.
Increasing competition followed by the return to discounted-price
practices as a key component of the company's business strategy to
gain market share would likely result in a negative rating action.
Conversely, Fitch will view as factors that could trigger a
positive rating action a combination of the following: improvement
in cash flow generation and business deleverage above expectations
incorporated in the ratings, coupled with solid liquidity, and
positive FCF generation resulting in FCF margin above 10%.


METROFINANCIERA CONSTRUCTION: S&P Cuts Rating on Class A to 'mxD'
-----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term ratings
on the class A notes from Metrofinanciera Construction Loan Trust
#650 to 'D (sf)' and 'mxD (sf)' from 'C (sf)' and 'mxCC (sf)'. "At
the same time, we lowered our rating on the subordinate class B
notes to 'mxD (sf)' from 'mxCC (sf)'. Subsequently, we withdrew
our ratings on both classes. The certificates were backed by a
portfolio of Mexican construction loans originated and serviced by
Metrofinanciera S.A.P.I. de C.V. SOFOM E.N.R.," S&P said

"The downgrades reflect insufficient proceeds from the liquidation
of the trust's assets needed to pay down the principal due on
class A and interest and principal due on class B. After the sale,
the class A outstanding amount is MXN1.016 billion and the class B
outstanding amount is MXN214 million," S&P said.

"We withdrew our ratings on both classes to reflect the
liquidation of the trust's assets, and coming closure of the
trust," S&P said.

               Standard & Poor's 17g-7 Disclosure Report

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Reports
included in this credit rating report are available at:

         http://standardandpoorsdisclosure-17g7.com

Rating Actions

Metrofinanciera Construction Loan Trust #650

                  Rating
Class    To       Interim       From
A        NR       D (sf)        C (sf)
A        NR       mxD (sf)      mxCC (sf)
B        NR       mxD (sf)      mxCC (sf)

NR - Not rated.


SU CASITA: Fitch Downgrades Nat'l Long-Term Rating to 'CC(mex)
--------------------------------------------------------------
Fitch Ratings has downgraded the following notes for Su Casita
Trust:

Su Casita Mortgage Class A UDI Indexed Notes due on 2035

  -- Long-term rating and unenhanced long-term rating to 'B-sf'
     from 'Bsf';

  -- Unenhanced national long-term rating to 'B+(mex)' from
     'BB(mex').

The Rating Outlook Negative for the aforementioned notes.

Su Casita Mortgage Class B UDI Indexed Notes due on 2035

  -- National long-term rating to 'CC(mex)' from 'CCC(mex).

The transaction is backed by mortgages loans originated by
Hipotecaria Su Casita, S.A. de C.V., S.F.O.M, E.N.R. (Su Casita)
and serviced by Patrimonio S.A de C.V. SOFOL since October 2010.

The rating action follows a review of the performance of the
transaction and an update of Fitch's rating criteria for assessing
credit risk in Mexican RMBS)sponsored by banks and
Sofoles/Sofomes. Fitch updated its criteria on March 16.

Delinquency levels of 90 days or more have been increasing for the
last year, going from 30% to 40%.  This increase in delinquencies
severely affected the transaction's overcollateralization which
dropped to -55% from -35%.

The structure of this transaction considers a dual waterfall,
where:

  -- The cash generated from interest collections net of senior
     expenses is used first to pay interest on the class A notes
     and then interest on the class B notes; and

  -- The cash generated from principal collections is used to
     amortize the notes according to the priority of payment as
     stated in the Indenture.

The existence of a dual waterfall exacerbated by a continued
deterioration in the underlying collateral performance resulted in
lower interest coverage levels for both classes.


=================
N I C A R A G U A
=================


* NICARAGUA: IDB Supports Pilot Housing Program
-----------------------------------------------
The Inter-American Development Bank approved a US$10 million loan
to Banco de Finanzas S.A. (BDF), a leading commercial bank in
Nicaragua, to finance a pilot housing project that will pave the
way for low-income families working in the informal sector to get
access to mortgage financing.

The financing, arranged by the IDB's Opportunities for the
Majority Initiative (OMJ), will allow BDF to improve information
about the credit history of potential low-income homebuyers by
implementing a rent-to-own program.  BDF is expected to extend
mortgage loans to an estimated 500 low-income Nicaraguan families
over the loan's 10-year life under the pilot program.

The project, the first of its kind financed by the IDB in the
region, seeks to address one of the biggest obstacles facing
millions of low-income Latin American families that today struggle
to improve their housing conditions: lack of access to financing
because they can't document their income.  Clients in the program
will rent the selected property for a 24-month period in which a
portion of the monthly rental fee will be kept in a savings
account that will later constitute the down payment on the home.
The completion of timely monthly rental payments during the 24-
month period will create a solid client credit information and
payment track record, allowing BDF to better access risks and make
a decision on the mortgage loan.

"This project represents a breakthrough to overcome the
traditional obstacles that prevent low-income clients from gaining
access to quality housing solutions: the ability to save for a
down payment, and the ability to qualify for a bank mortgage
loan," said IDB project team leader Susan Olsen.

The housing sector in Nicaragua, as well as in the rest of Latin
America and the Caribbean, is dominated by informality.  Informal
housing units are self-constructed and progressively built, most
without proper land titles or access to public utilities.  It is
estimated that 20,000 homes are built annually in Nicaragua, with
only 3,000 produced and financed through the formal market.  A
lack of investment in formally constructed housing coupled with
constraints in demand due to restricted mortgage lending for low-
income families has contributed to an elevated housing deficit,
which the government of Nicaragua estimates at 957,000 units.

The program is expected to help spur demand for formally built
units with construction costs of less than $20,000, clear land
titles, utility connections and full basic infrastructure,
attracting increased private sector investment into the low-income
housing segment.  The program's value proposition for all private
sector actors in the housing market gives it a high potential to
reach scale in Nicaragua and elsewhere in the region, according to
Olsen.

BDF will be working in alliance with Casa Rapido, Agil y Facil
Nicaragua S.A. (RAFCASA), a financial services company
specializing in the design of financial products for low-income
clients. RAFCASA will pre-qualify low-income beneficiaries for the
program and provide them with financial literacy training to
assist with the BDF mortgage application process.  The rent-to-own
pilot, which could generate up to an additional $20 million in
mortgage loans, represents a strong incursion by BDF in the social
housing sector.

"We are confident that this pilot program will pave the way toward
home ownership for thousands of Nicaraguan families for whom today
owning a modest home is not a possibility, even though they have
the income and willingness to pay for a mortgage," said Juan
Carlos Argello, CEO of BDF.

                               About OMJ

The Opportunities for the Majority Initiative promotes and
finances market-based, sustainable business models that engage
companies, local governments and communities in the development
and delivery of quality products and services for people at the
base of the pyramid in Latin America and the Caribbean.

                             About BDF

Founded in 1992, BDF is now the fourth largest bank in Nicaragua
with assets of US$468 million (close to 10% of assets in the
banking system) and US$45 million in equity, as of December 2011.
The bank is well positioned in the different consumer segments of
the market, leading the mortgage sector and is increasing its
market participation in the corporate segment BDF has presence in
the main regions of the country, through 30 branches and 39 ATMs
and has positioned itself as a leading brand in the industry,
experiencing solid growth in its assets, deposits, and equity.


=====================
P U E R T O   R I C O
=====================


ANGEL MARTINEZ: 1st Circuit BAP Affirms Ch. 11 Case Dismissal
-------------------------------------------------------------
The U.S. Bankruptcy Appellate Panel for the First Circuit shot
down an appeal taken by Angel Luis Colon Martinez from an order of
the U.S. Bankruptcy Court for the District of Puerto Rico dated
Nov. 22, 2011, dismissing the Debtor's chapter 11 case and
disqualified him from filing a new case for 180 days pursuant to
11 U.S.C. Sec. 109(g).

"The record amply supports the bankruptcy court's conclusion that,
notwithstanding its extraordinary patience and its accommodations
made to the Debtor, there was cause to both dismiss the Debtor's
chapter 11 case pursuant to [11 U.S.C. Sec. 1112(b)], and
disqualify him from any further case filing for 180 days," said
Bankruptcy Judge Henry J. Boroff, as member of the Bankruptcy
Appellate Panel, who wrote the opinion.  Other members of the
panel are Judges J. Michael Deasy and Frank J. Bailey.

Allied Financial, Inc., the Debtor's largest secured creditor
holding secured claims totaling $665,000, sought dismissal of the
case, arguing that it was filed in bad faith.  Allied also said
the Debtor's conduct throughout the bankruptcy proceedings
"evidence[d] a record of delay."

Allied's collateral covers three out of the Debtor's four real
estate properties.

The Debtor filed a disclosure statement and plan of reorganization
on Nov. 21, 2011, roughly six weeks after the Court-ordered
deadline.

A copy of the First Circuit BAP's May 14, 2012 decision is
available at http://is.gd/UDS845from Leagle.com.

                  About Angel Luis Colon Martinez

Angel Luis Colon Martinez, a retired physician who owns various
real estate properties in Santurce, Hato Rey, Guanica and Caguas,
filed a pro se Chapter 11 bankruptcy petition (Bankr. D. P.R. Case
No. 10-09746) on Oct. 18, 2010.  Mr. Martinez owns a home,
residential rental property, unimproved land, and a commercial
building.  In his schedules, the Debtor reported that, as of the
Petition Date, the total value of the Properties was $1,975,000.


=================
V E N E Z U E L A
=================


PETROLEOS DE VENEZUELA: Fitch to Rate $3BB Issuance at 'B+/RR4'
---------------------------------------------------------------
Fitch Ratings expects to assign a 'B+/RR4' rating to Petroleos de
Venezuela S.A.'s (PDVSA) proposed issuance of $3 billion of
unsecured notes due 2033, 2034 and 2035. The company expects to
use the proceeds from the issuance for general corporate purposes.
PDVSA's foreign and local currency ratings are 'B+'. The Rating
Outlook is Negative.

PDVSA's credit quality reflects the company's linkage to the
government of Venezuela as a state-owned entity, combined with
increased government control over business strategies and internal
resources. This underscores the close link between the company's
credit profile and that of the sovereign. PDVSA's ratings also
consider the company's strong balance sheet, sizeable proven
hydrocarbon reserves, and strategic interests in international
downstream assets.

Linkage to Sovereign:

PDVSA credit quality is inextricably linked to the Venezuelan
government. It is a state-owned entity whose royalties and tax
payments have historically represented more than 50% of the
government's revenues, and it is of strategic importance to the
economic and social policies of the country. In 2008, the
government changed PDVSA's charter and mission statement to allow
it to participate in industries that contribute to the country's
social development, including health care, education, and
agriculture.

Limited Transparency of Sovereign:
The Venezuelan government displays limited transparency in the
administration and use of government-managed funds, and in fiscal
operations, which poses challenges to accurately assess the stance
of fiscal policy and the full financial strength of the sovereign.
As a direct by-product of being a state-owned entity, PDVSA
displays similar characteristics, which reinforces the company's
linkage of its ratings to the sovereign.

Stand-Alone Credit Profile Solid for Rating Category:
PDVSA continues to be an important player in the global energy
sector. The company's competitive position is strong and supported
by its reported sizeable proven hydrocarbon reserves, strategic
interests in international downstream assets and private
participation in upstream operations. The company also benefits
from a strong balance sheet, which is in line with many of its
competitors. These strong credit attributes are consistent with a
higher rating category although sovereign related risks offset the
strength of the financial profile and constrain the rating to that
of the sovereign.

Low Leverage Expected to Moderately Rise:
PDVSA reported an EBITDA (after royalties and social expenditure
which include most oil bartering agreements) and FFO of
approximately USD18.7 billion and USD30.9 billion, respectively,
as of year-end 2011. Total financial debt as of Dec. 31, 2011
increased to USD34.9 billion from USD24.9 billion as of 2010. The
leverage level at 1.9x is low for the rating category, which is
limited by credit quality of the Venezuelan government. Capital
expenditures which have totaled approximately USD71.7 billion over
the past five years, are expected to increase significantly
starting next year as the company intensifies its exploration and
production efforts on the Orinoco Oil belt.

Under Fitch's base case, PDVSA's credit quality is expected to
remain strong for the rating category despite an expected
deterioration in the company's financial profile due to large
capital expenditures of approximately USD236 billion through 2018
and increasing debt levels. Fitch expects capital expenditures to
be lower than those projected by the company as they seem
unrealistic compared with current levels. Under Fitch's stress
case scenario, with declining production levels, same capital
expenditure levels and increasing debt, PDVSA's underling credit
quality could deteriorate to levels in line with the assigned
rating category.

Large Hydrocarbon Reserves:

PDVSA's reported hydrocarbon reserves continue to increase with
proved hydrocarbon reserves of 331 billion barrels of oil
equivalent (boe) (approximately 89% oil and 11% natural gas) and
proved developed hydrocarbon reserves of 20 billion boe as of
December 2011, representing a 15-year proved developed reserve
life. All reserves are property of the Bolivarian Republic of
Venezuela and not the company.

Venezuela reported oil production of approximately 2.99 million
barrels per day (bpd) and approximately 3.86 boed during 2011.
Reported cured production has declined by approximately 2% per
annum on average over the last four years. Various independent
reports have estimated production levels are lower than reported
by the company, which adds to risk and is incorporated into the
ratings.


===============
X X X X X X X X
===============


* BOND PRICING: For the Week May 14 to May 18, 2012
---------------------------------------------------


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

ARGENTINA
---------

ARGENT-$DIS           8.28         12/31/2033    USD        68.3
ARGENT- PAR           1.18         12/31/2038    ARS        39.5
ARGENT- DIS           7.82         12/31/2033    EUR        57.9
ARGENT- DIS           7.82         12/31/2033    EUR        57.3
ARGENT- DIS           7.82         12/31/2033    EUR        59.5
ARGENT- DIS           4.33         12/31/2033    JPY          42
ARGENT- PAR           0.45         12/31/2038    JPY          15
ARGENT- PAR&GDP       0.45         12/31/2038    JPY           8
ARGNT BOGAR              2         2/4/2018      ARS         145
ARGNT-BOCON PRE9         2         3/15/2014     ARS        71.9
BANCO MACRO SA        9.75         12/18/2036    USD          72
BANCO MACRO SA        9.75         12/18/2036    USD        70.4
BANCO MACRO SA        9.75         12/18/2036    USD        70.4
CAPEX SA                10         3/10/2018     USD          71
CAPEX SA                10         3/10/2018     USD        71.9
EMP DISTRIB NORT      9.75         10/25/2022    USD        56.5
EMP DISTRIB NORT      9.75         10/25/2022    USD          57
EMP DISTRIB NORT      10.5         10/9/2017     USD        65.1
PROV BUENOS AIRE     9.625         4/18/2028     USD        63.8
PROV BUENOS AIRE     9.375         9/14/2018     USD        69.1
PROV BUENOS AIRE    10.875         1/26/2021     USD        69.1
PROV BUENOS AIRE     9.375         9/14/2018     USD          68
PROV BUENOS AIRE    10.875         1/26/2021     USD        69.8
TRANSENER             9.75         8/15/2021     USD        59.5
TRANSENER             9.75         8/15/2021     USD        70.4


BRAZIL
------

ANCO BONSUCESSO      9.25          11/3/2020     USD        74.4
BANCO BONSUCESSO      9.25         11/3/2020     USD        70.9
BANCO CRUZEIRO       8.875         9/22/2020     USD        68.9
BANCO CRUZEIRO       8.875         9/22/2020     USD        68.4
BANCO CRUZEIRO        8.25         1/20/2016     USD          75
REDE EMPRESAS       11.125                       USD          40
REDE EMPRESAS       11.125                       USD          38
REDE EMPRESAS       11.125                       USD        47.8


CAYMAN ISLAND
-------------

BANCO BPI (CI)        4.15           11/14/2035   EUR        59.1
BCP FINANCE BANK      5.01           3/31/2024    EUR          50
BCP FINANCE BANK      5.31           12/10/2023   EUR        52.5
BCP FINANCE CO       5.543                        EUR        32.7
BCP FINANCE CO       4.239                        EUR        33.2
BES FINANCE LTD       5.58                        EUR        43.2
BES FINANCE LTD        4.5                        EUR        51.2
CAM GLOBAL FIN        6.08           12/22/2030   EUR        66.9
CHINA AUTOMATION      7.75            4/20/2016   USD        75.3
CHINA FORESTRY       10.25           11/17/2015   USD          50
CHINA FORESTRY       10.25           11/17/2015   USD        48.1
CHINA SUNERGY         4.75           6/15/2013    USD          52
EFG ORA FUNDING        1.7           10/29/2014   EUR        53.5
ESFG INTERNATION     5.753                        EUR        34.9
GOL FINANCE           8.75                        USD        77.8
GOL FINANCE           8.75                        USD          75
HOME INNS                2           12/15/2015   USD        74.5
HOME INNS                2           12/15/2015   USD        73.2
JINKOSOLAR HOLD          4            5/15/2016   USD        51.8
LDK SOLAR CO LTD        10            2/28/2014   CNY        45.7
LDK SOLAR CO LTD      4.75            4/15/2013   USD        61
LDK SOLAR CO LTD      4.75            4/15/2013   USD        61.6
LDK SOLAR CO LTD      4.75            4/15/2013   USD        61
LUPATECH FINANCE     9.875                        USD        74
LUPATECH FINANCE     9.875                        USD        71.1
PUBMASTER FIN        6.962            6/30/2028   GBP
PUBMASTER FIN         8.44            6/30/2025   GBP
PUBMASTER FIN        5.943           12/30/2024   GBP        73
PUNCH TAVERNS        4.767            6/30/2033   GBP        72.4
RENHE COMMERCIAL     11.75            5/18/2015   USD        58.6
RENHE COMMERCIAL        13            3/10/2016   USD        60
RENHE COMMERCIAL        13            3/10/2016   USD        58.8
RENHE COMMERCIAL     11.75            5/18/2015   USD        58.9
SOLARFUN POWER H       3.5            1/15/2018   USD        67.3
SOLARFUN POWER H       3.5            1/15/2018   USD        66.8
SUNTECH POWER            3            3/15/2013   USD        68.8
SUNTECH POWER            3            3/15/2013   USD        69.4

CHILE
-----

CGE DISTRIBUCION      3.25            12/1/2012    CLP       20.2
COLBUN SA              3.2            5/1/2013     CLP       49.4
ESVAL S.A.             3.8            7/15/2012    CLP       12.6
MASISA                4.25            10/15/2012   CLP         10
QUINENCO SA            3.5            7/21/2013    CLP       25.6
PROV BUENOS AIRE
BANCO SANTANDER        6.1            6/1/2032     USD       62.8
BANCO SANTANDER        6.3            6/1/2032     USD       67.8


PUERTO RICO
-----------

PUERTO RICO CONS       6.2            5/1/2017     USD       56.6
PUERTO RICO CONS       6.5            4/1/2016     USD       69.5


VENEZUELA
---------

ELEC DE CARACAS        8.5            4/10/2018    USD       73.8
PETROLEOS DE VEN       5.5            4/12/2037    USD       57.5
PETROLEOS DE VEN     5.375            4/12/2027    USD       57
PETROLEOS DE VEN      5.25            4/12/2017    USD       73
VENEZUELA                7            3/31/2038    USD       68
VENEZUELA                7            3/31/2038    USD       69
VENEZUELA                6            12/9/2020    USD       72
VENEZUELA             7.65            4/21/2025    USD       74


                            ***********


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, Ivy B. Magdadaro, Frauline S.
Abangan, and Peter A. Chapman, Editors.

Copyright 2012.  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 Peter Chapman at 240/629-3300.


                   * * * End of Transmission * * *