TCRLA_Public/120822.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Wednesday, August 22, 2012, Vol. 13, No. 167


                            Headlines



A R G E N T I N A

CCF CREDITOS 1: Moody's Rates ARS4.38MM Certificates 'B3'


B E L I Z E

* BELIZE: Nears Default After Missing US$23MM Bond Payment


B E R M U D A

SMART HOME: Creditors' Proofs of Debt Due Aug. 29
SMART HOME: Members' Final Meeting Set for Sept. 19
STENA SKAGEN: Creditors' Proofs of Debt Due Aug. 29
STENA SKAGEN: Member to Hear Wind-Up Report on Sept. 18


B R A Z I L

BANCO CRUZEIRO: Bondholders to Receive Half of Investment


C A Y M A N   I S L A N D S

CARYSFORTH INVESTMENTS: Creditors' Proofs of Debt Due Sept. 13
CQS GLOBAL FEEDER: Creditors' Proofs of Debt Due Sept. 3
CQS GLOBAL MASTER: Creditors' Proofs of Debt Due Sept. 3
INTEGRATED EUROPEAN: Creditors' Proofs of Debt Due Sept. 13
JAMES FIELD: Creditors' Proofs of Debt Due Oct. 9

MERU HOLDINGS: Creditors' Proofs of Debt Due Aug. 29
MS INVESTMENT: Creditors' Proofs of Debt Due Sept. 4
NANO LTD: Creditors' Proofs of Debt Due Sept. 3
RHINE ALPHA: Creditors' Proofs of Debt Due Sept. 3
VIVI LIMITED: Creditors' Proofs of Debt Due Sept. 11


C H I L E

CHILE MINING: Delays Second Quarter Form 10-Q Filing


C O L O M B I A

TERMOCANDELARIA SCA: Fitch Affirms 'BB' IDRs; Outlook Stable


E L  S A L V A D O R

TELEMOVIL EL: Fitch Affirms Rating on $450-Mil. Sr. Notes at 'BB'


P E R U

TERMINALES PORTUARIOS: Fitch Rates $110-Mil. Sr. Sec. Notes 'BB-'


                            - - - - -


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


CCF CREDITOS 1: Moody's Rates ARS4.38MM Certificates 'B3'
---------------------------------------------------------
Moody's Latin America has assigned ratings to the debt securities
and certificates of Fideicomiso Financiero CCF Creditos Serie 1.
This transaction will be issued by Equity Trust Company
(Argentina) S.A. - acting solely in its capacity as issuer and
trustee.

Moody's notes that as of Aug. 20, the securities contemplated by
this transaction have not yet settled. If any assumptions or
factors considered by Moody's in assigning the ratings change
before closing, Moody's could change the ratings assigned to the
notes.

- ARS83,361,504 in Class A Fixed Rate Debt Securities (VDF TFA)
of "Fideicomiso Financiero CCF Creditos Serie 1", rated Aaa.ar
(sf) (Argentine National Scale) and Ba3 (sf) (Global Scale, Local
Currency)

- ARS4,387,448 in Certificates (CP) of "Fideicomiso Financiero
CCF Creditos Serie 1", rated A2.ar (sf) (Argentine National Scale)
and B3 (sf) (Global Scale, Local Currency)

The rating of the VDF TFA securities addresses the expected loss
posed to investors related to the payment of interest and
principal by the legal final maturity date (July 14, 2015). The
rating of the CP addresses the expected loss posed to investors
related to the repayment of the principal only by the legal final
maturity date. The rating of the CP does not address any other
interest or residual payments.

Ratings Rationale

The ratings are mainly based on the following factors:

* The credit enhancement available for the VDF TFA securities of
   5% initial subordination (calculated over the principal amount
   of the underlying loans)

* The turbo sequential payment structure which captures all the
   available excess spread in the transaction to pay down the VDF
   TFA securities (approximately 55% annually, assuming 0%
   defaults and 0% prepayments)

* The ability of Cordial Compa¤Ħa Financiera S.A. (CCF)
   (B2/Aa3.ar) to act as primary servicer of the pool

* The ability of Banco Supervielle S.A. (B2/Aa3.ar) to act as
   master servicer and backup servicer

* The credit quality of the underlying loans

* The availability of several reserve funds

The rated securities are payable from the cash flow coming from
the assets of the trust, which is an amortizing pool of 23,853
eligible personal loans denominated in Argentine pesos, with a
fixed interest rate, originated by Cordial Compania Financiera
S.A. (CCF), in an aggregate amount of ARS 87,748,952.

Moody's considered the credit enhancement provided in this
transaction through the initial subordination levels for each
rated class, as well as the historical performance of CCF's
portfolio. In addition, Moody's considered factors common to
consumer loans securitizations such as delinquencies, prepayments
and losses; as well as specific factors related to the Argentine
market, such as the probability of an increase in losses if there
are changes in the macroeconomic scenario in Argentina.

These factors were incorporated in a cash flow model that takes
into account all the relevant features of the transaction's assets
and liabilities. Monte Carlo simulations were run, which
determines the expected loss for the rated securities.

In assigning the rating to this transaction, Moody's assumed a
triangular distribution for defaults (base default assumption) as
follows: a minimum of 15%, a most likely of 25% and a maximum of
35%. Moody's also assumed a triangular distribution for
prepayments with a minimum of 20% a most likely of 35% and a
maximum of 40%. These assumptions are derived from the historical
performance to date of the CCF pools. Servicer default was modeled
by simulating the default of CCF as the servicer consistent with
its current ratings. In the scenarios where the servicer defaults,
Moody's assumed that the defaults on the pool would increase by 20
percentage points compared with the base default assumption.

The model results showed 0.54% expected loss for the VDF TFA
securities and 6.98% for the CP certificate.

Moody's ran several stress scenarios, including increases in the
default rate assumptions. If default rates were increased 4% from
the base case scenario, the ratings of the CP would be downgraded
to Caa1 (sf). The rating of the VDF TFA securities would be
unchanged.

Finally, Moody's also evaluated the back-up servicing arrangements
in the transaction. The transaction is linked to the credit
quality of the servicer, which will transfer collections to the
trust account every 72 hours. Therefore, there are three days of
commingling risk at the servicer level. If CCF is removed as
servicer, Banco Supervielle S.A. will be appointed as the backup
servicer. However, Banco Supervielle belongs to the same economic
group than the primary servicer. This is mitigated by the fact
that collections are initially received by two collection agents
before flowing into CCF's account. Borrowers should be able to
continue making payments at any of these two collection agents if
the servicer needs to be replaced. As a result, any potential
servicer replacement should be simpler in this case than in other
Argentine transactions.

CCF, the originator and primary servicer in the transaction, is a
financial company owned by Banco Supervielle (B2/Aa3.ar) which
holds 95% of CCF's shares. CCF offers financial products such as
credit cards, personal and consumer loans to Wal-Mart customers in
Argentina, based on a commercial agreement with Wal-Mart Argentina
S.R.L. signed in July 2010. CCF current deposit ratings are Aa3.ar
(national scale rating) and B2 (global scale, local currency).
This is the first CCF securitization rated by Moody's.

The main source of uncertainty for this transaction is the level
of delinquency of the loans assigned to the trust. A worsening in
macroeconomic conditions such as an increase in unemployment could
increase the losses of the pool. Obligors in this transaction
belong to low or middle income socioeconomic segments, therefore
they may be more affected by a slowdown in the economic activity
or higher unemployment. However, Moody's believes CCF's has in
place solid collection and loss mitigation practices that should
mitigate this risk to some extent.



===========
B E L I Z E
===========


* BELIZE: Nears Default After Missing US$23MM Bond Payment
----------------------------------------------------------
Adam Williams at Bloomberg News report that Belize neared default
after the Central American country missed a payment on about $544
million of bonds and Finance Secretary Joseph Waight said the
government is unlikely to pay during a 30-day grace period.

The government can't make the $23 million bond payment, Mr. Waight
told Bloomberg News in a phone interview from Belmopan City.

Prime Minister Dean Barrow said a restructuring was needed after
the coupon on the country's so-called superbond climbed to 8.5%
this year from 6% as part of an accord reached with investors in
2007, according to Bloomberg News.

"We simply do not have the capacity to make the payment . . . .
We are hoping to engage with creditors as quickly as possible,"
the report quoted Mr. Waight as saying.

Bloomberg News notes that Mr. Barrow projected that Belize's
fiscal deficit will climb to 2.5% of gross domestic product this
year from 1.1% after growth in the US$1.4 billion economy slowed
and the government took over the telecommunications and
electricity distribution companies.

The price of Belize's dollar bonds due in 2029 fell 0.25 cent to
34.75 cents on the dollar, according to data compiled by
Bloomberg.

Bloomberg News notes that the majority of the country's bond
holders have rejected three debt renegotiation scenarios published
by the central bank on Aug. 8.  Bloomberg News relates that those
scenarios include reduction of the 8.5 percent coupon to 2% with a
15-year principal grace period and a maturity date extension to
2062 from 2029.

Bloomberg News says that other scenarios call for a 45% principal
reduction with incremental coupon adjustments, or a 5-year
principal grace period with a 3.5% coupon.

"By not paying the coupon, the government is trying to force bond
holders into an exchange that will get investors pennies on the
dollar," Bloomberg News quoted Joe Kogan, head of emerging-market
debt strategy at Scotia Capital Markets in New York, as saying.

Bloomberg News says that Mr. Kogan described Belize's proposal in
an Aug. 8 report as "one of the worst restructurings for
bondholders in recent emerging markets history."

Belize has hired New York-based law firm Cleary Gottlieb Steen &
Hamilton LLP to advise the government on the restructuring, Mr.
Waight said, Bloomberg News notes.



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B E R M U D A
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SMART HOME: Creditors' Proofs of Debt Due Aug. 29
-------------------------------------------------
The creditors of Smart Home Reinsurance 2005-2 Limited are
required to file their proofs of debt by Aug. 29, 2012, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on Aug. 10, 2012.

The company's liquidator is:

         John C. McKenna
         CA of Finance & Risk Services Ltd.
         Suite 502, 26 Bermudiana Road
         Hamilton HM 11
         Bermuda


SMART HOME: Members' Final Meeting Set for Sept. 19
---------------------------------------------------
The members of Smart Home Reinsurance 2005-2 Limited will hold
their final general meeting on Sept. 19, 2012, at 10:00 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company commenced wind-up proceedings on Aug. 10, 2012.

The company's liquidator is:

         John C. McKenna
         CA of Finance & Risk Services Ltd.
         Suite 502, 26 Bermudiana Road
         Hamilton HM 11
         Bermuda


STENA SKAGEN: Creditors' Proofs of Debt Due Aug. 29
---------------------------------------------------
The creditors of Stena Skagen Ltd. are required to file their
proofs of debt by Aug. 29, 2012, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on Aug. 14, 2012.

The company's liquidator is:

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


STENA SKAGEN: Member to Hear Wind-Up Report on Sept. 18
-------------------------------------------------------
The member of Stena Skagen Ltd. will receive on Sept. 18, 2012, at
9:30 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.

The company commenced wind-up proceedings on Aug. 14, 2012.

The company's liquidator is:

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


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B R A Z I L
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BANCO CRUZEIRO: Bondholders to Receive Half of Investment
---------------------------------------------------------
Reuters reports that investors told Valor Economico newspaper that
bondholders of Brazilian lender Banco Cruzeiro do Sul who stand to
receive about half of their investment in a bond repurchase
program are being treated in an unfair way.

Cruzeiro do Sul was seized by Brazil's central bank on June 4 and
put under the administration of privately held deposit guarantee
fund FGC the same day, Reuters recalls.  Under the global bond
buyback plan, FGC will receive tenders until Sept. 12, according
to Reuters.

Reuters notes that the repurchase is the best solution for
Cruzeiro do Sul, since it would help lower the bank's debt load
and boost its allure among potential suitors, executives said last
week. FGC, which offered to repurchase the bank's bonds at a 49.3%
discount, has a mandate to find a buyer for the lender by year-
end.

According to Valor, Reuters relates, law firm Bingham McCutchen
held a conference call with a number of bondholders last week to
draft a counterproposal to Brazil's privately held deposit
guarantee fund FGC, which took over Cruzeiro in June.  The
buyback, which might impose $1 billion of losses among owners of
the bank's global debt, is leaving bondholders with no options,
Valor cited an investor as saying, Reuters says.

Reuters notes that Brigitte Posch, a senior emerging bond manager
for Pimco, the world's largest bond fund, told Valor that "the FGC
left bondholders with no choice and, in some way, owners of debt
notes are not being treated equally."

Despite the large discount, some bondholders said they might have
to agree to the repurchase or else risk seeing the bank forced
into liquidation - a decision that would wipe out any remaining
value for their bonds, Reuters notes.  With the tender, the FGC is
also seeking to rule out a government- or banking sector-led
bailout of Cruzeiro, investors told Reuters.

Banco Cruzeiro do Sul S.A. is headquartered in Sao Paulo, Brazil
and had total unconsolidated assets of BRL9.48 billion (US$4.67
billion) and negative shareholders' equity of BRL2.24 billion
(US$1.1 billion) as of June 4, 2012 per the Special Opening
Balance Sheet published by FGC.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 20, 2012, Moody's Investors Service has downgraded the long-
term global local and foreign currency deposit ratings of Banco
Cruzeiro do Sul S.A. (BCSul) to Ca, from Caa1, and lowered the
bank's foreign currency senior and subordinated debt ratings to Ca
and C, respectively, from Caa1 and Caa2.



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C A Y M A N   I S L A N D S
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CARYSFORTH INVESTMENTS: Creditors' Proofs of Debt Due Sept. 13
--------------------------------------------------------------
The creditors of Carysforth Investments Limited are required to
file their proofs of debt by Sept. 13, 2012, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on July 24, 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


CQS GLOBAL FEEDER: Creditors' Proofs of Debt Due Sept. 3
--------------------------------------------------------
The creditors of CQS Global Distressed Value Opportunities Feeder
Fund Limited are required to file their proofs of debt by Sept. 3,
2012, to be included in the company's dividend distribution.

The company commenced liquidation proceedings on July 20, 2012.

The company's liquidator is:

         CDL Company Ltd.
         P.O. Box 31106 Grand Cayman KY1-1205
         Cayman Islands


CQS GLOBAL MASTER: Creditors' Proofs of Debt Due Sept. 3
--------------------------------------------------------
The creditors of CQS Global Distressed Value Opportunities Master
Fund Limited are required to file their proofs of debt by Sept. 3,
2012, to be included in the company's dividend distribution.

The company commenced liquidation proceedings on July 20, 2012.

The company's liquidator is:

         CDL Company Ltd.
         P.O. Box 31106 Grand Cayman KY1-1205
         Cayman Islands


INTEGRATED EUROPEAN: Creditors' Proofs of Debt Due Sept. 13
-----------------------------------------------------------
The creditors of Integrated European Fund Limited are required to
file their proofs of debt by Sept. 13, 2012, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on July 23, 2012.

The company's liquidator is:

         DMS Corporate Services Ltd.
         c/o Bernadette Bailey-Lewis
         Telephone: (345) 946 7665
         Facsimile: (345) 946 7666
         dms House, 2nd Floor
         P.O. Box 1344 Grand Cayman KY1-1108
         Cayman Islands


JAMES FIELD: Creditors' Proofs of Debt Due Oct. 9
-------------------------------------------------
The creditors of James Field are required to file their proofs of
debt by Oct. 9, 2012, to be included in the company's dividend
distribution.

The company commenced liquidation proceedings on July 23, 2012.

The company's liquidator is:

         Paget-Brown Trust Company Ltd.
         c/o Sydney J. Coleman
         Telephone: (345)-949-5122
         Facsimile: (345)-949-7920
         P.O. Box 1111 Grand Cayman KY1-1102
         Cayman Islands


MERU HOLDINGS: Creditors' Proofs of Debt Due Aug. 29
----------------------------------------------------
The creditors of Meru Holdings Ltd. are required to file their
proofs of debt by Aug. 29, 2012, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on July 25, 2012.

The company's liquidator is:

         Lion International Management Limited
         Craigmuir Chambers
         P.O. Box 71 Road Town
         Tortola VG 1110
         British Virgin Islands
         c/o Mr. Philip C Pedro
         HSBC International Trustee Limited
         Compass Point Bermudiana Road
         Hamilton HM 11
         Bermuda
         Telephone: (441) 299-6482
         Facsimile: (441) 299-6526


MS INVESTMENT: Creditors' Proofs of Debt Due Sept. 4
----------------------------------------------------
The creditors of MS Investment Services are required to file their
proofs of debt by Sept. 4, 2012, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on July 26, 2012.

The company's liquidator is:

         Toshihiro Nitta
         c/o Maples and Calder, Attorneys-at-law
         The Center, 53rd Floor
         99 Queen's Road Central
         Hong Kong


NANO LTD: Creditors' Proofs of Debt Due Sept. 3
-----------------------------------------------
The creditors of Nano Ltd. are required to file their proofs of
debt by Sept. 3, 2012, to be included in the company's dividend
distribution.

The company commenced liquidation proceedings on July 24, 2012.

The company's liquidator is:

         CDL Company Ltd.
         P.O. Box 31106 Grand Cayman KY1-1205
         Cayman Islands


RHINE ALPHA: Creditors' Proofs of Debt Due Sept. 3
--------------------------------------------------
The creditors of Rhine Alpha Master Fund are required to file
their proofs of debt by Sept. 3, 2012, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on July 16, 2012.

The company's liquidator is:

         CDL Company Ltd.
         P.O. Box 31106 Grand Cayman KY1-1205
         Cayman Islands


VIVI LIMITED: Creditors' Proofs of Debt Due Sept. 11
----------------------------------------------------
The creditors of Vivi Limited are required to file their proofs of
debt by Sept. 11, 2012, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on July 24, 2012.

The company's liquidator is:

         Buchanan Limited
         c/o Allison Kelly
         Telephone: (345) 949-0355
         Facsimile: (345)949-0360
         P.O. Box 1170 George Town, Grand Cayman
         Cayman Islands KY1-1102



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C H I L E
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CHILE MINING: Delays Second Quarter Form 10-Q Filing
----------------------------------------------------
Chile Mining Technologies, Inc., was unable to file its Form 10-Q
within the prescribed time period without unreasonable effort or
expense due to the fact that the audit of the Company's financial
statements for the year ended June 30, 2012, has not been
completed.  The Company anticipates that it will file its Form
10-Q within the five-day grace period provided by Exchange Act
Rule 12b-25.

                        About Chile Mining

Chile Mining Technologies Inc. is a mineral extraction company
based in the Republic of Chile, with copper as its principal "pay
metal."  Its founders, Messrs. Jorge Osvaldo Orellana Orellana and
Jorge Fernando Pizarro Arriagada, have refined the electrowin
process in a way that permits the electrowin process to be used at
a relatively small mine and/or tailings sites.  Electrowinning is
a process in which positive and negative electrodes are placed in
an acidic solution containing copper ions, and an electric current
passed through the solution causes the copper to be deposited on
the negative electrodes so that it can be collected.

Schwartz Levitsky Feldman LLP, in Toronto, Ontario, Canada,
expressed substantial doubt about Chile Mining's ability to
continue as a going concern following the fiscal year ended March
31, 2012, annual report.  The independent auditors noted that
the continuance of the Company is dependent upon its ability to
obtain financing and upon future profitable operations from the
production of copper.

The Company reported a net loss of US$3.95 million on US$433,554
of sales in fiscal 2012, compared with a net loss of
US$7.25 million on US$188,227 of sales in fiscal 2011.

The Company's balance sheet at March 31, 2012, showed
US$5.92 million in total assets, US$7.37 million in total
liabilities, and a stockholders' deficit of US$1.45 million.



===============
C O L O M B I A
===============


TERMOCANDELARIA SCA: Fitch Affirms 'BB' IDRs; Outlook Stable
------------------------------------------------------------
Fitch Ratings has affirmed Termocandelaria S.C.A. E.S.P.'s foreign
and local currency Issuer Default Ratings (IDRs) at 'BB'.  The
Rating Outlook is Stable.  The rating action applies to
approximately US$50 million of outstanding senior secured notes
issued by Termocandelaria Power Ltd.

Termocandelaria's ratings reflect the company's strong cash flow
generation and adequate leverage levels.  The rating also takes
into consideration Termocandelaria's stable and predictable cash
flow generation coming from fixed capacity payments and the
company's improving credit metrics since its debt restructuring in
2007.  Termocandelaria's ratings also reflect the company's modest
liquidity levels, moderates expose to credit availability to
finance potential working capital needs in a scenario of prolonged
power generation caused by a drought, and exposure to regulatory
changes and credit implications related with the addition of new
capacity of energy generation.

Reliability Payments Support Stable Cash Flow

Termocandelaria's ratings reflect the company's stable and
predictable cash flow stream generated by fixed capacity payments,
received from the Colombian electric system. Termocandelaria
receives approximately USD36 million to USD38 million of capacity
payments, annually.  These reliability charges are dollar-linked,
and are to exist for a five-year period ending November 2012 and
will be adjusted thereafter to reflect current market prices based
on future energy auctions.  The assignment of a new reliability
charge in December 2011, for the periods 2015 to 2016, is regarded
as a favorable factor for the rating.  Revenues allocated for
these periods will be approximately USD40 million annually
starting November 2015.

Leverage to Gradually Decrease

Termocandelaria's leverage has remained stable through the cycle
of low and high hydrology.  The company's financial strategy of
improving its debt profile through debt reduction and refinancing
short-term debt with longer-term obligations bolsters its credit
quality.  This has resulted in a more uniform and manageable
maturity profile.  Between 2009 and first quarter of 2012,
Termocandelaria's debt to EBITDA ratio averaged 2.5x, while
interest coverage ratio was 2.7x.  These metrics are considered
healthy and in line with Fitch expectations and slightly above the
company's peer group.

Under Fitch's base case scenario, Termocandelaria is expected to
gradual decrease its leverage during the next couple of years.  A
key driver to lower leverage will be strengthening revenues due to
new capacity charges.  Fitch expects the company's leverage levels
to range between 2.0 and 2.5x over the near future.  The current
rating does not consider additional increases in debt to finance
changes from a single-cycle to a combined-cycle configuration that
will most likely require the consent of the debtors.  The addition
of new capacity would likely increase Termocandelaria's leverage
and may have a negative effect on the company's credit quality
depending on how it's funded.

Liquidity Adjusted but Consistent with a Grade Profile

Fitch considers Termocandelaria's liquidity position to be tight.
The company operates with moderate levels of cash on hand, which
expose liquidity position to future working capital needs.  The
company is exposed to credit availability to finance potential
working capital needs should the company be called to generate for
prolong periods.  The company has uncommitted lines of credit
available for approximately USD17 million.  As of June 31, 2012,
the company had USD $3.3 million of cash and marketable securities
and USD $10.5 million of short-term debt (Next 12 months period of
Notes).  The company's cash to short-term debt ratio is currently
less than 1x, which is considered tight when compared with its
peer group.

The company has a demanding debt maturity schedule over the next
few years, which might continue pressuring liquidity levels.
Termocandelaria faces debt amortizations of USD $11.7 million in
2013, 2014 and 2015.  Fitch expects Termocandelaria to continue
maintain moderate levels of cash, consequence of the significant
weight of debt service over cash flow from operation, which Fitch
expect to remain around USD $12 and USD $15 million in middle
term.

Competitive Electricity Generation Market

Termocandelaria operates in a highly competitive electricity
market dominated by low-cost, hydro-based generation companies.
As the company's marginal cost is significantly higher than that
of hydroelectric generators, the company operates primarily as a
back-up plant.  New generation capacity in Colombia is not
expected to be needed until at least 2014 given that current
generation capacity is sufficient to meet Colombia's electricity
demand for the next few years.  The company may participate in
future generation auctions and increase its installed capacity by
converting its plant to a combined-cycle from its current single-
cycle configuration.  Successful auction bids will receive long-
term fixed capacity payments after 2016.

Uncertainty about the Impact of Regulatory Changes

The risk associated with the uncertainty created by possible
regulatory changes remains latent in the sector.  The ratings
incorporate uncertainty created by possible regulatory changes
including those related to gas storage and distribution for the
operation of thermal plants.  Contrarily to thermoelectric
generation companies located in the interior of the country, Fitch
expects Termocandelaria to only be marginally impacted by such
regulatory changes due to its proximity to fuel production
centers.

Potential Rating or Outlook Drivers

The ratings do not incorporate the possible plant conversion to
combined cycle given that its completion and financing is
currently uncertain.  The conversion may be considered neutral to
negative for the company's credit profile depending on how it is
financed.  Nevertheless, capital expenditures for this project are
considered significant and might increase leverage and possibly
have a negative effect on the company's credit quality.

Key considerations for a positive rating action could result from
a combination of different factors: an improvement in liquidity
levels and a reduction in leverage while maintaining a sustained
leverage of approximately 2x and interest coverage of
approximately 6 to 7x, which would increase the financial
flexibility to deal with prolonged power generation in a low
hydrology scenario.



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


TELEMOVIL EL: Fitch Affirms Rating on $450-Mil. Sr. Notes at 'BB'
-----------------------------------------------------------------
Fitch Ratings has affirmed the local and foreign currency Issuer
Default Ratings (IDRs) of Telemovil El Salvador, S.A. (Telemovil)
and Telemovil Finance Co. Ltd (TF), including the $450 million
senior notes due 2017 issued by TF and guaranteed by Telemovil at
'BB'.  The Rating Outlook is Stable.

Telemovil's ratings reflect its diversified service offering and
platforms, leading positions in mobile and pay television services
in El Salvador, strong brand recognition, extensive network
coverage, sound financial profile and positive pre-dividend free
cash flow.  The company's credit quality is tempered by a strong
competitive environment in the mobile business, limited geographic
diversification and the dependence of the economy on remittances,
which affects demand for telecommunications services.

The ratings factor in the relationship with parent company
Millicom International Cellular S.A. (MIC), which fully owns
Telemovil and TF.  These companies benefit from synergies related
to the larger scale of the parent and expertise of management but
also consider the payment of dividends, royalties and technical
fees, loans to affiliates and Millicom's financial position.  For
the 12 months ended June 30, 2012 MIC had a solid financial
profile with US$4.7 billion in revenues, US$2.0 billion in EBITDA,
funds flow from operations (FFO) of US$1.6 billion, on balance
sheet indebtedness of US$2.7 billion and cash balances of US$900
million.

Price Declines Affecting Mobile Operations:

Telemovil strategy with regard to mobile service should center on
increasing value added services, such as mobile financial
solutions, to compensate for voice revenue declines.  Strong
competition has resulted in voice price pressure that resulted in
lower voice revenues that, in turn, have not been fully
compensated by increases in other services.  Lower pace of mobile
subscriber additions than competitors has resulted in a 2% decline
in market share over the last year to 42%.  A more balanced
competitive environment is expected once the transaction where
America Movil will receive Digicel's operations in El Salvador is
approved.

The home and enterprise segments have had positive results.
However, the mobile operation has a larger size and is the largest
contributor to revenues and cash flow at nearly 70%.  Telemovil
offers bundled services with its pay-tv subsidiary Millicom Cable,
which include residential and enterprise customers.  In
conjunction with Telemovil's strategy of focusing on
differentiated mobile service offerings, this should allow the
company to maintain its leading market position in the medium
term.  Millicom Cable's home segment continue to increase RGUs,
mainly driven by fixed broadband services, CATV and (to a lesser
extent) fixed lines, with stable ARPU and disconnections.

Fitch believes Telemovil's competitive position will improve due
to the offering of bundles with multiple services.  However,
Millicom Cable customers' quadruple play bundles are currently
very limited, and customers with double and triple play bundles
still offer penetration growth opportunities.  Millicom Cable is
the leading CATV provider in El Salvador with approximately 316.6
thousand revenue generating units (RGUs) as of June 30, 2011.
Millicom Cable network has close to 80% of bidirectional
capability and covers approximately 615,000 homes passed.

Higher Capex for 2013:

Pre-dividend free cash flow should decline in 2013 but still be
positive due to increased capital expenditures which are expected
be slightly below 20% of revenues. Investments follow the strategy
towards data services by increasing 3G coverage and fixed
broadband speeds.  Pre-dividend free cash flow should return to
historical levels during the following years as capex normalizes.
Given the good financial position of the parent Fitch believes
that payments to MIC, in the form of dividends or royalties and
technical fees, can be reduced if needed providing flexibility to
Telemovil.

Stable Gross Leverage:

Gross leverage has remained stable despite the operating
pressures.  For the 12 months ended March 31, 2012 total debt to
EBITDA and net debt to EBITDA stood at 2.5 times (x) and 2.1x,
respectively.  Going forward, Fitch expects that mobile operations
should continue stabilizing resulting in stable credit metrics.
Excess cash flow from operations after capital expenditures is
expected to be used for dividend payments.

Good Liquidity:

As of March 31, 2012 total debt was composed solely of the US$450
million senior notes maturing in 2017 issued by TF and had cash
balances of US$67 million.  In addition, in 2006 the company lent
funds to a holding company owned by MIC sub that owns 50% plus one
share of Colombia Movil.  The amount outstanding of this loan is
US$171 million as of the end to the first quarter of 2012.  The
ratings incorporate that when Telemovil receives the payment of
this loan, approximately US$100 million should remain in cash at
Telemovil, further supporting liquidity and reducing the net debt
to EBITDA to approximately 1.5x.

Key Rating Drivers:

Negative factors to credit quality include total debt to EBITDA
remaining at 2.5x in conjunction with a poor liquidity position or
higher leverage due to competitive issues, cash flow
deterioration, a change in financial targets of management or a
deteriorating financial profile of the parent (MIC).  Positive
factors to credit quality include Telemovil making firm progress
in reducing and maintaining a leverage level of total debt to
EBITDA in the range 1.0x-1.5x and increased geographical and
service diversification.



=======
P E R U
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TERMINALES PORTUARIOS: Fitch Rates $110-Mil. Sr. Sec. Notes 'BB-'
-----------------------------------------------------------------
Fitch Ratings has assigned a 'BB-' rating to Terminales Portuarios
Euroandinos Paita (TPE) SA's US$110 million senior secured notes.
The Rating Outlook is Stable.  However, Fitch notes that during
its review of the final closing documents it identified an
inconsistency regarding the construction performance security that
was stipulated in the original transaction documents.

Fitch believes the project's exposure to completion risk is
heightened, as performance security was not provided by a
financial institution with an international rating.  In Fitch's
view, the Stand-by Letters of Credit (SBLC) provided by Banco
Interamericano de Finanzas (Banbif) to cover liquidated damages in
the event of delays and/or cost overruns during the Phase I
construction period are considered weak mitigants, given the
construction risk associated with the project.  TPE has indicated
that it will replace Banbif no later than Oct. 1, 2012, with a
'BB' internationally rated financial institution.

As of March 2012, a near final version of the EPC contract
stipulated that an investment grade, internationally rated
performance security was required.  However, it is Fitch's view
that a 'BB' rated financial institution provides adequate
mitigation and is consistent with the project's debt rating.  Were
the SBLC to not be replaced, a negative rating action could occur.

In accordance with Fitch's policies, the Issuer appealed and
provided additional information to Fitch that resulted in a rating
action that is different than the original rating committee
outcome.

KEY RATING DRIVERS

COMPLETION RISK: The project is subject to undergo a significant
expansion throughout the life of the concession.  Construction of
Phase I is expected to be the most extensive of the four stages.
According to the concession agreement, Phase I must be completed
within 24 months after financial closing (with a maximum period of
six-month delay).

MATERIAL EXPOSURE TO CARGO VOLATILITY: The Port of Paita is a
second port of call with considerable concentration in cargo type,
business lines, and customers.  Distant to major economic centers,
the port is exposed to cargo volatility, with limited multimodal
capabilities and access to infrastructure.

ELEVATED EXPOSURE TO VOLUME RISK: The port is significantly
exposed to volume risk and economic cycles, as formal contractual
agreements with shipping lines are limited.

RELIABLE FACILITIES RENOVATION PROGRAM: The project has a well-
defined redevelopment plan and an adequate prefunding schedule to
complete further construction works.  The facilities' conditions
are expected to achieve favorable levels, given that construction
timetables for Phase II and III are in line with demand growth.
Construction costs for the four phases are predetermined in the
concession agreement, and budgeted in the financial projections.

ADEQUATE STRUCTURAL PROTECTIONS: Financial flexibility is mainly
sustained by the existence of adequate liquidity reserves
available for debt service and/or for construction costs of Phase
II and III.  The structure additionally, provides a five-year
grace period, incorporates a strong provision to trap cash to
prefund construction costs of Phase II and III, and includes a
dividend distribution test.

MODERATE LEVEL OF DEBT: Financing presents a moderate debt burden
with dependence of cash flow growth to maintain healthy financial
ratios. Concession agreement allows for an adequate cash flow
generation term.  However, required investments for stages II,
III, and IV (additional investments), significantly reduce the
project's financial flexibility.

WHAT COULD TRIGGER A RATING ACTION

FAILURE TO TIMELY REPLACE FINANCIAL GUARANTOR: The project could
face greater exposure to construction risk than initially
anticipated.

SIGNIFICANT CONSTRUCTION DELAYS: In accordance with the concession
agreement, a termination is possible if Phase I construction works
exceed 30 months.

SUBSTANTIAL DECREASE IN REVENUES: Limited contractual agreements
and weaker customer diversification elevates merchant risk,
subjecting prices to market volatility.

SECURITY
The notes are secured by the pledge of all capital stock of the
issuer, the mortgage between the issuer and sub-collateral agent,
and a perfected security interest in all of the issuer's assets.

TRANSACTION SUMMARY
Terminales Portuarios Euroandinos SA has issued US$110 million of
senior secured notes with legal maturity in 2037.  The notes are
structured with a five-year grace period of interest payment only,
under a scheduled amortization and with 8.125% fixed interest rate
payable quarterly.

Proceeds from the issuance, in accordance with the Payment and
Guarantee Trust Agreement, were used to fund the Debt Service
Reserve Account (DSRA) and the Operation and Maintenance (O&M)
Reserve Account on the closing date, and to pay the fees, premiums
and expenses related to the offering of the notes.  In addition,
the Issuer used the proceeds of the notes, along with Equity
contributions, to fund the Construction Cost Accounts and made a
deposit into the Additional Investment Trust Account to prefund
certain payments required for Stage IV.

The cost for the entire project is US$293 million broken down into
three stages and includes additional investments as required by
the concession agreement.  Stage I is mandatory and consists of
the construction of a new terminal, dredging to 13 meters and
purchase of various gantries for a cost of US$131 million.  To the
extent that volumetric levels are reached, there are two other
investment phases required by the concession agreement.  Phase II
is expected to cost US$19.3 million, and Phase III is estimated at
US$19.8 million.  Additional Investments (Phase IV) are required
throughout the life of concession, total US$100 million (to be
adjusted at 1.19% annual rate, equivalent to US$123 million).

Fitch believes the transaction contains appropriate financial
flexibility given the liquidity reserves and cash trap mechanisms
built into the structure.  The structure exhibits resilience to
stresses, as reserve accounts contribute to offset cash flow
shortfalls in periods of distress.

Located in the North-western region of Peru, the Port of Paita is
a small container port with the second highest activity in
container movements in the country, in terms of twenty-foot
equivalent units (TEUs).  The port currently handles over 150,000
TEUs. The port is predominantly an export-driven facility focused
on hydro-biologic products (pota calamari, and fish flour), agro-
industrial products (mango, coffee, banana, and grape), fish meal
and oil. In contrast, the main import-products are fertilizers and
grains.

The port is located in the region Piura, a small city with low
economic activity, 1,030 km (approximately 640 miles) northwest of
Lima.  Paita is connected to the IIRSA highway, a 955 km road that
links Paita to the Yurimaguas port (Amazon system) with no
significant competition.  The location enables the port to have a
competitive advantage, over Callao and Guayaquil, to service the
Northwestern Peruvian market.

Built in 1966 and renewed in 1999, the port is currently in
operation.  It services principally, the demand for Piura,
Lambayeque, Cajamarca, San Martin, and Amazonas area.  In October
2009, TPE was granted a 30-year concession to operate and improve
Puerto Paita under a design, build, finance, operate, transfer
(DBFOT) scheme.  The concession was granted by the government of
Peru through the Ministry of Transportation and Communications
(MTC) to TPE, a company jointly owned by Mota - Engil and Cosmos
Agencia Maritima.


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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
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Information contained herein is obtained from sources believed to
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of the same firm for the term of the initial subscription or
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