/raid1/www/Hosts/bankrupt/TCRLA_Public/120525.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Friday, May 25, 2012, Vol. 13, No. 104
Headlines
A R G E N T I N A
BISA LEASING: Moody's Issues Summary Credit Opinion
B A R B A D O S
REDJET: Barbadians Disagree With Plan to Injection Funds
B R A Z I L
ANHANGUERA EDUCACIONAL: Moody's Withdraws Ba3 Corp. Family Rating
BANCO MERCANTIL: Moody's Issues Summary Credit Opinion
C A Y M A N I S L A N D S
ALPHARD ABSOLUTE: Shareholders' Final Meeting Set for June 8
APHRODITE INTERNATIONAL: Shareholders' Meeting Set for June 7
CABLE (ATAC 2003-1): Shareholders' Final Meeting Set for June 8
CABLE (LEIPZIG 2002-1): Shareholders' Meeting Set for June 8
CAEDMON NEW WORLD: Shareholder to Get Wind-Up Report on May 30
CMA GLOBAL: Shareholder to Receive Wind-Up Report on June 5
CONSTELLAR ASIA: Shareholders' Final Meeting Set for June 7
CRC INVESTMENTS: Members' Final Meeting Set for June 4
FLORENCE HOLDINGS: Members' Final Meeting Set for May 31
NATHAN RETAIL: Shareholder to Receive Wind-Up Report on May 29
ORESTES INTERNATIONAL: Shareholders' Final Meeting Set for June 7
PISTON INVESTMENT: Shareholder to Get Wind-Up Report on May 29
SYC RETAIL: Shareholder to Receive Wind-Up Report on May 29
TOMEL INVESTMENTS: Members' Final Meeting Set for May 31
WELLINGTON RETAIL: Shareholder to Get Wind-Up Report on May 29
M E X I C O
FORD CREDIT: Moody's Upgrades Long-Term Debt Rating From 'Ba1'
HSBCCB 07-3: Moody's Cuts Rating on Debt Certificates to 'Ba1'
P U E R T O R I C O
COOPERATIVA DE SEGUROS: A.M. Best Cuts Issuer Credit Rating to b
FUNERARIA Y CAPILLA: Case Summary & 3 Largest Unsecured Creditors
T R I N I D A D & T O B A G O
CARIBBEAN AIRLINES: To Launch Fewer Flights to London
CL FINANCIAL: CLICO Still Requires Government Aid
TRINIDAD CEMENT: Caricom Head Testifies in Case
- - - - -
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A R G E N T I N A
=================
BISA LEASING: Moody's Issues Summary Credit Opinion
---------------------------------------------------
Moody's Investors Service issued a summary credit opinion on Bisa
Leasing S.A. and includes certain regulatory disclosures
regarding its ratings. The release does not constitute any
change in Moody's ratings or rating rationale for Bisa Leasing
S.A.
Moody's current ratings on Bisa Leasing S.A. are:
Long Term Issuer (domestic and foreign currency) ratings of Ba3,
on review for downgrade
Senior Unsecured (foreign currency) ratings of Ba3, on review for
downgrade
Senior Unsecured MTN Program (foreign currency) ratings of
(P)Ba3, on review for downgrade
NSR Long Term Issuer (domestic and foreign currency) ratings of
Aa1.bo, on review for downgrade
NSR Senior Unsecured (foreign currency) ratings of Aa1.bo, on
review for downgrade
NSR Senior Unsecured MTN Program (foreign currency) ratings of
Aa1.bo, on review for downgrade
Rating Rationale
Moody's assigned a global foreign and local currency debt rating
of Ba3 to Bisa Leasing, and a Aa1.bo in national scale, both on
review for possible downgrade. The ratings assigned to Bisa
Leasing S.A. reflect the importance of its franchise as a leasing
company in the Bolivia. The ratings also incorporate Bisa
Leasing's consistently positive operating performance as well as
its conservative risk management.
Bisa Leasing S.A. was formed in 1993 and is a pioneer in the
leasing market in Bolivia. Headquartered in La Paz, it has
branches in Cochabamba, Santa Cruz. and Tarija. The company
offers leasing as well as leaseback for machinery, real estate,
and equipment among others. The main shareholders is Grupo
Financiero Bisa, through Banco Bisa with 55.9% and La Vitalicia
with 20% of the stake, respectively.
In addition, Moody's assigns a D- bank financial strength rating
(BFSR) to Banco Bisa as well as a ba3 stand-alone baseline credit
assessment. The BFSR reflects its good and improving financial
performance and franchise potential in Bolivia's growing economy.
The rating is also indicative of the bank's good capitalization,
well positioned corporate franchise, and sustained growth over
the last several quarters.
While increasing competition poses a continuing threat to profit
margins, Banco Bisa's market shares and loan diversification
position it well to meet this challenge. The relatively unstable
operating environment of Bolivia, as well as the risks associated
with keen competition across all business segments, constrain
Bisa's ratings. Additionally, Moody's is concerned that
persistent low interest rates, has forced Banco Bisa to go down
market and tap higher-risk sectors as it plans to increase its
exposure in the SME and consumer finance segment.
Moody's nevertheless views as positive the bank's conservative
risk management practices. In addition, the bank possesses ample
earning diversification and in the last years it has shown
sustained improvements in asset quality, liquidity,
capitalization, and profitability. Additionally, the bank's loan
book and deposit de-dollarization minimizes the potential for
foreign currency mismatches thus limiting credit and market
risks.
Moody's assigns a Ba3 global local currency rating to Banco Bisa
as well as a Aa1.bo rating on the Bolivian national scale, both
on review for possible downgrade. The bank's B2 global foreign
currency deposit rating and Aa3.bo national scale deposit ratings
are constrained by the Bolivian country ceiling for deposits.
The review will focus on the channels of shared exposure and
contagion between Banco Bisa and the government. Banco Bisa would
be highly eligible of systemic support in a situation of stress
following the review of the BFSR, reflecting its position as a
major deposit-taking institution in Bolivia.
Rating Drivers
- Tough competitive scenario, which is pressuring margins in the
corporate sector
- Relatively unstable operating environment and fragile
political situation
- Conservative risk management practices
- Ample earning diversification
- Sustained improvements in asset quality, liquidity,
capitalization, and profitability
- Dynamic management, with a respected track record within the
Bolivian financial community
- Good franchise and brand recognition based on strong presence
in corporate banking
Rating Outlook
Banco Bisa's D- BFSR , global and national scale local currency
deposit ratings are on review for downgrade. The global and
national scale foreign currency ratings maintain their positive
outlooks.
What Could Change the Rating - Up
Any upward pressure on ratings is currently unlikely given the
existing review for downgrade. The foreign currency deposit
rating is currently constrained by the country ceilings and have
a positive outlook aligned to the outlook of the ceilings. These
ratings could be upgraded following an upgrade of the ceilings.
What Could Change the Rating - Down
Ratings are on review. Asset quality deterioration, an issue that
has already troubled the bank, could also depress ratings, as
could a drying up of liquidity because of mismatches or political
and social turmoil.
===============
B A R B A D O S
===============
REDJET: Barbadians Disagree With Plan to Injection Funds
--------------------------------------------------------
RJR News notes that a poll conducted in Barbados reportedly show
that tax payers are not in agreement with recent proposals for
the Barbados government to inject funds into the cash-strapped
REDjet (Airone Caribbean/Airone Ventures Limited).
The NATION newspaper said that the poll, conducted by the
Caribbean Development Research Services Inc (CADRES), indicated
that the majority of respondents were not opposed to having the
grounded carrier back in the skies, but they believed it should
not be at the expense of taxpayers, according to RJR News.
The report notes that of the 1,080 people surveyed, 39.4% said
they thought that more could be done for REDjet, compared to 35.3
per cent who felt enough had been done already, RJR News notes.
The remaining 25.3% were non-committal, RJR News relays.
However, RJR News says that when asked if government should
provide financial assistance to REDjet, most, or 42.1%,
responded: "No", the NATION reported.
As reported in the Troubled Company Reporter-Latin America on
March 26, 2012, RJR News reports that REDjet's decision to
suspend all flights came a day after the airline announced the
addition of its new route to Antigua and Barbuda. REDjet
officials are calling on the Barbadian government for close to
$8,000,000 in assistance, and to receive the same subsidies as
other airlines, RJR News noted. The report disclosed that Mr.
Maharaj said governments cannot continue to expose themselves as
a guarantor to private enterprises.
REDjet (Airone Caribbean/Airone Ventures Limited) is a startup
low-cost carrier (LCC) based at the Grantley Adams International
Airport in Christ Church, Barbados, near Bridgetown.
Incorporated in Barbados, the privately owned airline features a
fleet of McDonnell Douglas MD-82 and MD-83 aircraft.
===========
B R A Z I L
===========
ANHANGUERA EDUCACIONAL: Moody's Withdraws Ba3 Corp. Family Rating
-----------------------------------------------------------------
Moody's America Latina has withdrawn Anhanguera Educacional
Participacoes S.A.'s Ba3 and A3.br corporate family ratings for
its own business reasons.
The following ratings were withdrawn:
- Corporate family ratings: Ba3/A3.br
Ratings Rationale
Moody's has withdrawn the rating for its own business reasons.
Anhanguera is a leading provider of educational services in
Brazil serving more than 444,000 students through a network of 70
accredited campuses, more than 500 learning centers, and distance
education programs. Anhanguera offers associate, bachelors, and
graduate degrees as well as continuing education. The company
primarily serves low to middle income working adults through
convenient locations and flexible schedules. The company reported
net revenues of almost BRL 1.3 billion in the last twelve months
ended March 31, 2012.
BANCO MERCANTIL: Moody's Issues Summary Credit Opinion
------------------------------------------------------
Moody's Investors Service issued a summary credit opinion on
Banco Mercantil do Brasil S.A. and includes certain regulatory
disclosures regarding its ratings. This release does not
constitute any change in Moody's ratings or rating rationale for
Banco Mercantil do Brasil S.A.
Moody's current ratings on Banco Mercantil do Brasil S.A. are:
Senior Unsecured MTN Program (foreign currency) ratings of (P)Ba2
Long Term Bank Deposits (domestic and foreign currency) ratings
of Ba2
Bank Financial Strength ratings of D
Subordinate (foreign currency) ratings of Ba3
Short Term Bank Deposits (domestic and foreign currency) ratings
of NP
NSR Long Term Bank Deposits (domestic currency) ratings of Aa3.br
NSR Short Term Bank Deposits (domestic currency) ratings of BR-1
Rating Rationale
Moody's assigns a bank financial strength rating (BFSR) of D to
Banco Mercantil do Brasil S.A. (BMB), translating into a Baseline
Credit Assessment of ba2. In Moody's opinion, BMB would be
eligible for a certain degree of systemic support, given its
regional footprint in the state of Minas Gerais (71 out of 163
branches in the country). Because of that, Moody's incorporates a
low probability of systemic support for BMB within the country.
Despite BMB's presence in other states of southeast, south,
northeast and mid-west regions, the bank has a small market share
in terms of retail deposits within the Brazilian financial system
(0.12% as of September 2011). Nevertheless, the low probability
of systemic support is not sufficient to lift the global local
currency (GLC) deposit rating beyond Ba2. This GLC is a direct
mapping out of BMB's D bank financial strength rating.
The rating also reflects the bank's good core funding in its
native region, which is favorable relative to those of other
niche players, and is in line with that of larger banks in BMB's
main market. BMB's loan portfolio is appropriately granular,
reflecting its business focus as a middle-market and consumer
lender.
The BFSR is restricted, however, by the strong competition for
retail banking in Brazil, which, along with the current decline
in interest rates could lead to margin compression. Moreover, the
bank's relatively high expensive structure and credit costs also
constrain the BFSR.
On January 20, 2012, Moody's affirmed all ratings assigned to
BMB. The outlook on all ratings remained stable.
Rating Outlook
All ratings have stable outlook.
What Could Change the Rating - Up
Factors that could have an upward pressure on ratings include a
potentially better quality of the bank's loan book while
increasing its market share within and outside its core region.
Ratings could also benefit from enhanced quality of earnings
generation, which could lead to improved profitability and asset
quality ratios. Other positive developments for ratings could
include the maintenance of granular retail funding base, balance
sheet growth and competitive power.
What Could Change the Rating - Down
The BFSR could be affected by material and sustained reductions
in earnings and profit margins, which could weaken the bank's
financial flexibility and capital growth. An aggressive
leveraging of the bank's balance sheet to expand operations
beyond core business and a failure to adequately control credit
and operational risk could also drain rating forces.
===========================
C A Y M A N I S L A N D S
===========================
ALPHARD ABSOLUTE: Shareholders' Final Meeting Set for June 8
------------------------------------------------------------
The shareholders of Alphard Absolute Return SPC will hold their
final meeting on June 8, 2012, at 10:40 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
APHRODITE INTERNATIONAL: Shareholders' Meeting Set for June 7
-------------------------------------------------------------
The shareholders of Aphrodite International Limited will hold
their final meeting on June 7, 2012, to receive the liquidator's
report on the company's wind-up proceedings and property
disposal.
The company's liquidator is:
Andrea Aegerter
Telephone: +41 22 319 01 76
Facsimile: +41 22 319 01 02
Coutts & Co Trustees (Switzerland) Ltd
13 Quai de l'Ile
P.O. Box 5511 1211 Geneva 11
Switzerland
CABLE (ATAC 2003-1): Shareholders' Final Meeting Set for June 8
---------------------------------------------------------------
The shareholders of Cable (ATAC 2003-1) Limited will hold their
final meeting on June 8, 2012, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
David Dyer
Telephone: (345)949-8244
Facsimile: (345)949-5223
P.O. Box 1984 Grand Cayman KY1-1104
Cayman Islands
CABLE (LEIPZIG 2002-1): Shareholders' Meeting Set for June 8
------------------------------------------------------------
The shareholders of Cable (Leipzig 2002-1) Limited will hold
their final meeting on June 8, 2012, to receive the liquidator's
report on the company's wind-up proceedings and property
disposal.
The company's liquidator is:
David Dyer
Telephone: (345)949-8244
Facsimile: (345)949-5223
P.O. Box 1984 Grand Cayman KY1-1104
Cayman Islands
CAEDMON NEW WORLD: Shareholder to Get Wind-Up Report on May 30
--------------------------------------------------------------
The sole shareholder of Caedmon New World Opportunities Ltd will
receive on May 30, 2012, at 10:00 a.m., the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Robin Lee Mcmahon
c/o Lynden John
Telephone: (345) 814 8915
Facsimile: (345) 814 8529
-- or --
Telephone conference dial in details:
Participant code: 18107590
United States - 1-866-247-4356
United Kingdom - +44-20-7154-0601
Cayman Islands - 1-866-936-0998
Ernst & Young Ltd.
62 Forum Lane, Camana Bay
PO Box 510 Grand Cayman KY1-1106
Cayman Islands
CMA GLOBAL: Shareholder to Receive Wind-Up Report on June 5
-----------------------------------------------------------
The sole shareholder of CMA Global Investments Ltd. will receive
on June 5, 2012, at 10:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
David Peter Martin Blair
Telephone: 00353 18780807
Facsimile: 00353 18780827
c/o 25 Eden Quay
Dublin 1, Ireland
CONSTELLAR ASIA: Shareholders' Final Meeting Set for June 7
-----------------------------------------------------------
The shareholders of Constellar Asia Fund, Ltd will hold their
final meeting on June 7, 2012, at 4:00 p.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
DMS Corporate Services Ltd.
c/o Bernadette Bailey-Lewis
Telephone: (345) 946 7665
Facsimile: (345) 946 7666
dms Corporate Services Ltd.
dms House, 2nd Floor
P.O. Box 1344, Grand Cayman KY1-1108
Cayman Islands
CRC INVESTMENTS: Members' Final Meeting Set for June 4
------------------------------------------------------
The members of CRC Investments Inc. will hold their final meeting
on June 4, 2012, to receive 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 KY1-1102
Cayman Islands
FLORENCE HOLDINGS: Members' Final Meeting Set for May 31
--------------------------------------------------------
The members of Florence Holdings Limited will hold their final
meeting on May 31, 2012, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.
The company's liquidator is:
Eagle Holdings Ltd.
c/o Barclays Private Bank & Trust (Cayman) Limited
FirstCaribbean House, 4th Floor
P.O. Box 487 Grand Cayman KY1-1106
Cayman Islands
NATHAN RETAIL: Shareholder to Receive Wind-Up Report on May 29
--------------------------------------------------------------
The sole shareholder of Nathan Retail Holdings Limited will
receive on May 29, 2012, at 10:00 a.m., the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Galaxy Chan Mei Lan
KPMG
Prince's Building, 8th Floor
10 Chater Road
Central, Hong Kong
c/o Graham Kot
Telephone: +852 2847 5130
Facsimile: +852 2869 7357
-- or --
KPMG
Alexandra House, 27th Floor
18 Chater Road
Central, Hong Kong
Telephone: +852 2140 2888
Facsimile: +852 2869 7357
ORESTES INTERNATIONAL: Shareholders' Final Meeting Set for June 7
-----------------------------------------------------------------
The shareholders of Orestes International Limited will hold their
final meeting on June 7, 2012, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Andrea Aegerter
Telephone: +41 22 319 01 76
Facsimile: +41 22 319 01 02
Coutts & Co Trustees (Switzerland) Ltd
13 Quai de l'Ile
P.O. Box 5511 1211 Geneva 11
Switzerland
PISTON INVESTMENT: Shareholder to Get Wind-Up Report on May 29
--------------------------------------------------------------
The sole shareholder of Piston Investment Limited will receive on
May 29, 2012, at 11:30 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Galaxy Chan Mei Lan
KPMG
Prince's Building, 8th Floor
10 Chater Road
Central, Hong Kong
c/o Graham Kot
Telephone: +852 2847 5130
Facsimile: +852 2869 7357
-- or --
KPMG
Alexandra House, 27th Floor
18 Chater Road
Central, Hong Kong
Telephone: +852 2140 2888
Facsimile: +852 2869 7357
SYC RETAIL: Shareholder to Receive Wind-Up Report on May 29
-----------------------------------------------------------
The sole shareholder of SYC Retail Holdings Limited will receive
on May 29, 2012, at 10:30 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Galaxy Chan Mei Lan
KPMG
Prince's Building, 8th Floor
10 Chater Road
Central, Hong Kong
c/o Graham Kot
Telephone: +852 2847 5130
Facsimile: +852 2869 7357
-- or --
KPMG
Alexandra House, 27th Floor
18 Chater Road
Central, Hong Kong
Telephone: +852 2140 2888
Facsimile: +852 2869 7357
TOMEL INVESTMENTS: Members' Final Meeting Set for May 31
--------------------------------------------------------
The members of Tomel Investments Ltd. will hold their final
meeting on May 31, 2012, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.
The company's liquidator is:
Eagle Holdings Ltd.
c/o Barclays Private Bank & Trust (Cayman) Limited
FirstCaribbean House, 4th Floor
P.O. Box 487 Grand Cayman KY1-1106
Cayman Islands
WELLINGTON RETAIL: Shareholder to Get Wind-Up Report on May 29
--------------------------------------------------------------
The sole shareholder of Wellington Retail Holdings Limited will
receive on May 29, 2012, at 11:00 a.m., the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Galaxy Chan Mei Lan
KPMG
Prince's Building, 8th Floor
10 Chater Road
Central, Hong Kong
c/o Graham Kot
Telephone: +852 2847 5130
Facsimile: +852 2869 7357; or
KPMG
Alexandra House, 27th Floor
18 Chater Road
Central, Hong Kong
Telephone: +852 2140 2888
Facsimile: +852 2869 7357
===========
M E X I C O
===========
FORD CREDIT: Moody's Upgrades Long-Term Debt Rating From 'Ba1'
--------------------------------------------------------------
Moody's Investors Service upgraded Ford Credit de Mexico, S.A. de
C.V., SOFOM E.N.R. (Ford Credit de Mexico)'s global local
currency long term debt rating to Baa3, from Ba1, with a stable
outlook. At the same time, Moody's de Mexico upgraded Ford Credit
de Mexico's Mexican National Scale debt rating to Aa3.mx, from
A1.mx. The short-term Mexican National Scale debt rating remains
unchanged at MX-2. All these ratings have stable outlooks.
Rating Rationale
The rating upgrade follows Moody's rating action on parent
company Ford Motor Credit Company LLC's rating - senior unsecured
rating upgraded to Baa3 with stable outlook, from Ba1.
Ford Credit de Mexico's debt ratings are based on an irrevocable
and unconditional guarantee provided by Ford Motor Credit Company
LLC.
The last rating action taken on Ford Credit de Mexico was on
October 28, 2011, when Moody's upgraded its ratings to Ba1/A1.mx
with positive outlook.
The principal methodology used in this rating was Finance Company
Global Rating Methodology, published on March 2012.
The long-term Mexican National Scale rating of Aa3.mx indicates
issuers or issues with very strong creditworthiness relative to
other domestic issuers. The short-term Mexican National Scale
rating of MX-2 indicates that the issuer has an above average
ability to repay short-term senior unsecured debt obligations
relative to other domestic issuers.
HSBCCB 07-3: Moody's Cuts Rating on Debt Certificates to 'Ba1'
--------------------------------------------------------------
Moody's de Mexico S.A. de C.V. has downgraded the Global Scale,
Local Currency and Mexican National Scale ratings of HSBCCB 07-3
debt certificates to Ba1 (sf) / A1.mx (sf) from Baa3 (sf) /
Aa3.mx (sf), respectively.
Originator: HSBC Mexico S.A., Institucion de Banca Multiple
Issuer: Banco Invex S.A., Institucion de Banca Multiple solely as
trustee
HSBCCB 07-3 ratings downgraded to Ba1 (sf) / A1.mx (sf);
previously on Nov 17, 2011 downgraded to Baa3 (sf) / Aa3.mx (sf)
Ratings Rationale
This downgrade reflects two main factors: a weak trend on
interest collections from the pool of securitized mortgage loans
that are available to make timely coupon payments to senior
certificates holders, and the deteriorated asset quality of the
pool that results in a high inventory of real estate owned assets
(REO). Moody's considers both factors increase the risk that
interest payments may not be paid on a timely basis and the long-
term credit risk for full principal payments at maturity date.
HSBCCB 07-3 debt certificates have a dual waterfall for interest
and principal collection/payments. According to the transaction
documents, interest collections net of fees and expenses are used
to pay interest on the certificates, and principal collections
are only to be used to pay principal on the certificates. The
interest coverage ratio ("ICR"), which is calculated by dividing
interest collections (net of fees and expenses) by interest on
the senior certificates, exhibits a declining trend and has
continued to deteriorate in recent months. As of May 2012, during
the last twelve months the ICR has been between 1.02 times ("x")
and 1.19x. Moody's considers these levels to be low when compared
to other Mexican RMBS and for an investment grade rating. In
addition, this transaction does not currently have a funded cash
reserve available to cover any potential short falls in interest
payments. Although the transaction structure contemplates the
funding of this cash reserve (for an amount equivalent to 3
months of interest payments) once the target
overcollateralization of 3.5% has been reached, this reserve has
not been funded because the transaction cash flows have not been
sufficient. The overcollateralization level as of May 2012 is
negative -15.6%.
In Moody's view, timely payment of interest to certificate
holders is increasingly dependent on REO sales. Moody's notes
that in recent months the servicer has proactively managed the
trust's REO inventory. Reported sales during the last three
months are equivalent to approximately 50% of total REO sales of
the last twelve months, and those revenues have been partially
used to make interest payments on the certificates. If the ICR is
calculated taking into account income from REO sales, the ICR for
the last 12 months would be between 1.18x and 1.56x. Given the
size of the REO inventory (approximately 3.5% of the outstanding
balance of the pool) Moody's expects REO sales to continue in the
coming months.
Although stable, pool performance remains weak. Past due loans
(+90 days delinquent loans, excluding those with loan
modifications) and REO account for a high 17.2% of the actual
pool balance. The observed trend on early and late delinquencies
is stabilizing and Moody's expects this trend to continue in the
medium term. However, actual levels of REO increase liquidity
risk.
Credit protection for the HSBCCB 07-3 certificates remains
adequate for Ba1 (sf) / A1.mx (sf) ratings. Moody's projected net
losses for this transaction -- assuming a severity of loss of
52.0% -- are of 12.0% of the outstanding balance of the loan
pool. This compares with a projected lifetime credit enhancement
(including, overcollateralization, subordination and remaining
excess spread) equivalent to 20.9% of the outstanding balance of
the pool. If the severity of loss increases to 70%, HSBCCB 07-3
might be downgraded further to Ba2 (sf) / A2(sf). Moody's also
notes that HSBCCB 07-3 ratings may be further downgraded if the
ICR continues decreasing and/or if timely payment of interest
continues to depend on non-recurring revenues such as REO sales.
When available, Moody's recovery analysis will incorporate
reported data on REO sales in order to reduce uncertainty caused
by limited historical data.
As of May 2012, HSBCCB 07-3 certificates have been paid down by
51.8%.
The principal methodology used in this rating was "Moody's
Approach to Monitoring Residential Mortgage-Backed
Securitizations in Mexico" published in August 2009.
=====================
P U E R T O R I C O
=====================
COOPERATIVA DE SEGUROS: A.M. Best Cuts Issuer Credit Rating to b
----------------------------------------------------------------
A.M. Best Co. has downgraded the financial strength rating to C++
(Marginal) from B- (Fair) and issuer credit rating to "b" from
"bb-" of Cooperativa de Seguros de Vida de Puerto Rico (COSVI)
(San Juan, PR). Both ratings have been placed under review with
negative implications.
The rating downgrades reflect the drop in COSVI's surplus
reported through year-end 2011. COSVI recorded an operating loss
due to a reduction in its third party administrative fees and
weak results for its interest sensitive products as well as
investment-related losses. Capital also was negatively impacted
by the need for additional real estate-related valuation reserves
and the correction of an error. Thus, A.M. Best believes there
is uncertainty surrounding COSVI's ability to generate consistent
and sustainable positive earnings from its core lines of
business.
Partially offsetting these negative rating factors are the
improvement in the quality of COSVI's statutory capital and
surplus with the conversion of most of the remaining surplus
notes into common stock capital; its well-established presence in
the cooperative and life insurance marketplace in Puerto Rico;
diversified product offerings; and continuing business and cost-
restructuring initiatives to improve its marketing platform. In
addition, the ratings acknowledge COSVI members' commitment to
support the entity's financial flexibility.
The under review with negative implications status reflects A.M.
Best's concerns with COSVI's ability to stabilize its risk-
adjusted capitalization in the near term. During the under
review period, A.M. Best will evaluate the effective execution of
existing plans to mitigate these losses as well as for improving
its capital position.
FUNERARIA Y CAPILLA: Case Summary & 3 Largest Unsecured Creditors
-----------------------------------------------------------------
Debtor: Funeraria Y Capilla Naranjito Memorial I
P.O. Box 274
Naranjito, PR 00719-0274
Bankruptcy Case No.: 12-03934
Chapter 11 Petition Date: May 21, 2012
Court: U.S. Bankruptcy Court
District of Puerto Rico (Old San Juan)
Judge: Edward A. Godoy
Debtor's Counsel: Roberto Roman Valentin, Esq.
P.O. Box 8221
Bayamon, PR 00960-8221
Tel: (787) 740-6011
E-mail: romanlaw@prtc.net
Scheduled Assets: US$1,760,523
Scheduled Liabilities: US$793,326
A copy of the Company's list of its three largest unsecured
creditors filed with the petition is available for free at:
http://bankrupt.com/misc/prb12-03934.pdf
The petition was signed by Luis Matos, president.
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T R I N I D A D & T O B A G O
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CARIBBEAN AIRLINES: To Launch Fewer Flights to London
-------------------------------------------------------
Carla Bridglal at Trinidad Express reports that Caribbean
Airlines Limited prepares to launch its new Port of Spain to
London service next month, but with fewer flights than previously
announced.
"We are running two flights a week, so it's not to say flights
will be flying for flying sake. I am a firm believer of
continuous monitoring of anything that's new to see if it's
viable or not and at the end of the year we will have six months
of data and we will review it again," Transport Minister Devant
Maharaj told Trinidad Express in an interview.
Trinidad Express notes that Caribbean Airlines had previously
listed four weekly non-stop flights when it announced the
introduction of the London route in a release in March.
The report discloses that Mr. Maharaj said that restructuring of
the national airline is "strong" and with no trouble of it going
the way of its predecessor, BWIA. Trinidad Express relays that
although he did not go into detail as to the airline's plans, he
said given the direction under new Chairman Rabindra Moonan, the
turnaround of Caribbean Airlines might be sooner rather than
later, with a renewed focus on making the airline as efficient as
possible and reducing expenditure.
"We've just dropped the (Philadelphia-Montego Bay) Air Jamaica
route because it was not profitable, picked up London, and are
examining some of the existing operations; figures will be
adjusted accordingly as we try to cut off the fat. We have
trimmed some Jamaican operations regarding staffing arrangements
and buildings, and some other cost-saving operations will change
the financials," the report quoted Mr. Maharaj as saying.
"The restructuring is going very well. As I said before when I
came in, we are reviewing all the decisions which were made
before; those which we find feasible we are keeping, those which
we find as a drain we are reviewing. The aim is really to
rationalize the routes and the fleets," Mr. Maharaj told the news
agency. Mr. Maharaj said that while now is the summer peak
period, especially for the London route, it is necessary to
seasonally adjust these rates over a period of time to see what
is most viable -- what he called 'a work in progress." He added,
"We cannot just look at the peak, we have to look at the
troughs," Trinidad Express notes.
About Caribbean Airlines
Caribbean Airlines Limited -- http://http://www.caribbean-
airlines.com/ -- provides passenger airline services. It also
specializes in the shipment of fresh cut flowers and packaged
meats, hatching eggs, chocolates, fruits and vegetables, frozen
and chilled fish, vaccines, newspapers, and magazines within the
Caribbean, as well as to North America and Europe.
* * *
As reported in the Troubled Company Reporter on March 21, 2012,
RJR News said that Caribbean Airlines Limited owes nearly
US$30 million to Trinidad and Tobago's fuel provider National
Petroleum. Trinidad Express said CAL enjoys a seven-day credit
facility for aviation fuel from the company, according to RJR
News. However, the report related that the airline has not been
able to pay the full amount when invoiced and instead has been
issuing partial payments to sustain the account. RJR News notes
that Trinidad Express reported that the arrears were built up
over the last six weeks as no payments have been made despite an
attractive fuel subsidy which the airline has enjoyed since it
began operations in January 2007.
CL FINANCIAL: CLICO Still Requires Government Aid
-------------------------------------------------
Trinidad and Tobago Newsday reports that Trinidad and Tobago
Central Bank Governor Ewart Williams said the "reformed" Colonial
Life Insurance Company (Clico) will still require some support
from the Government before it is able to stand on its own.
Clico is a subsidiary of CL Financial Limited.
Mr. Williams said there was absolutely no doubt that Clico had
collapsed, according to T&T Newsday.
"The Government has put in billions of dollars, and even the
reformed smaller company would require government support. There
is no doubt about that. . . . The current Clico still has a
financing gap in its statutory fund. That is why people are not
getting all their money. That is why you have these arrangements
where you are getting 80 percent, or something. There is still a
gap that has to be covered by somebody," the report quoted Mr.
William as saying.
Asked whether this may involve the sale of some of the assets of
Clico's parent conglomerate, CL Financial, Mr. Williams replied:
"That is why the Government has actually put in a claim," T&T
Newsday notes.
When reporters asked if the Bank would pay that claim, Mr.
Williams said, "Absolutely not. The Central Bank is not a
signatory to the Memorandum of Understanding, or the shareholders
agreement. We are the regulator," T&T Newsday discloses.
About CL Financial
CL Financial Group Limited is a privately held conglomerate in
Trinidad and Tobago. Founded as an insurance company by Cyril
Duprey, Colonial Life Insurance Company was expanded into a
diversified company by his nephew, Lawrence Duprey. CL Financial
is now one of the largest local conglomerates in the region,
encompassing over 65 companies in 32 countries worldwide with
total assets standing at roughly US$100 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
August 10, 2009, A.M. Best Co. downgraded the financial strength
rating to C (Weak) from B (Fair) and issuer credit rating to
"ccc" from "bb" of Colonial Life Insurance Company (Trinidad)
Limited (CLICO) (Trinidad & Tobago). The ratings remain under
review with negative implications. CLICO is an insurance member
company of CL Financial Limited (CL Financial), a diversified
holding company based in Trinidad & Tobago.
According to a TCR-LA report on Feb. 20, 2009, citing Trinidad
and Tobago Express, Tobago President George Maxwell Richards
signed bailout bills for CL Financial, giving the government the
authority to control the company's unit, Colonial Life Insurance
Company, and giving the central bank extensive powers to treat
with CL Financial's collapse and the consequent systemic crisis.
TRINIDAD CEMENT: Caricom Head Testifies in Case
-----------------------------------------------
Trinidad and Tobago Newsday reports that Caribbean Community
(CARICOM) Secretary General Irwin La Rocque has given evidence at
the Caribbean Court of Justice (CCJ) in a lawsuit filed by
Trinidad Cement Limited (TCL) against the Caricom Competition
Commission -- an institution of the regional body -- on the
commission's investigations into alleged anti-competitive conduct
on the part of TCL and companies within the group.
The company has sought the court's intervention to review a
decision of the Commission to conduct an enquiry into alleged
anti-competitive business conduct of the TCL Group in relation to
sale and distribution of Portland cement within Caricom member
states, according to Trinidad and Tobago Newsday.
Trinidad and Tobago Newsday notes that special leave was granted
to TCL in January to challenge the CCC. TCL claimed that in
relation to the investigation conducted by the commission --
communicated to TCL by notice dated Aug. 24, 2011 -- the company
was informed that an enquiry was to be held into allegations of
anti-competitive conduct.
According to TCL, in December 2009, Caricom's Council for Trade
and Economic Development (COTED) made a request that the
commission investigate the operation of the market for the
production and sale of cement in Caricom, Trinidad and Tobago
Newsday discloses.
When the matter came up for hearing, Mr. La Rocque noted that in
December 2009, he wrote to the commission on behalf of the then
Secretary General, that the COTED was requesting an investigation
be undertaken regarding alleged anti-competitive conduct by TCL
in relation to the sale of cement within member states, Trinidad
and Tobago Newsday notes.
Trinidad and Tobago Newsday recalls that Mr. Rocque said that in
February 2010, the commission indicated that COTED's request was
not proper for investigation having regard to the Revised Treaty
of Chaguaramas (RTC). The report relates that Mr. La Rocque said
he sought approval of all COTED ministers of member states that
the Caricom Secretariat should request on behalf of COTED an
investigation into TCL's conduct and received responses from
Guyana, Belize and Suriname.
Mr. La Rocque said he proposed that approval of at least a three-
quarter majority of members of the community be obtained and
while efforts were being made for this, he received a letter from
the commission that it proposed to proceed with the TCL
investigation, the report notes. Mr. La Rocque said no further
effort was made to seek the remaining approval as a result of the
decision taken by the commission, the report discloses.
TCL's attorney Dr. Claude Denbow SC has argued that TCL never
received a copy of the COTED request and only found out about it
after receiving the Aug. 31, 2011, notice of enquiry from the
Commission which was served on his clients on Sept. 2, 2011, the
report notes.
About Trinidad Cement
Trinidad Cement Limited is a cement company and is the parent
company of Caribbean Cement Company Limited.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 5, 2011, RJR News reports that Trinidad Cement Limited has
now reached an agreement with its debtors on the terms and
conditions attached to the repayment of its debt. The agreement
will convert most of the company's debt into an 8-year facility,
to be paid, quarterly, from March 2013, according to RJR News.
The report related that deal also includes certain performance
criteria for repaying the debt and if those are not met, the
company will be penalized.
***********
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 * * *