TCRLA_Public/120830.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

            Thursday, August 30, 2012, Vol. 13, No. 174


                            Headlines



B E R M U D A

APL FINANCE: Creditors' Proofs of Debt Due Sept. 5
APL FINANCE: Member to Receive Wind-Up Report on Sept. 24
CIT FINANCIAL: Creditors' Proofs of Debt Due Sept. 5
CIT FINANCIAL: Member to Receive Wind-Up Report on Sept. 25
LAZARD EUROPEAN: Creditors' Proofs of Debt Due Sept. 5

LAZARD EUROPEAN: Member to Receive Wind-Up Report on Sept. 25
LIGHT HORSE: Creditors' Proofs of Debt Due Sept. 5
LIGHT HORSE: Member to Receive Wind-Up Report on Sept. 26


B E L I Z E

* BELIZE: Moody's Corrects June 1 Rating Release


B R A Z I L

BANCO CRUZEIRO: Fails to Win Buyback Approval at First Deadline


C A Y M A N   I S L A N D S

CARYSFORTH INVESTMENTS: Shareholders' Meeting Set for Sept. 14
CHINA EXPRESS: Members' Final Meeting Set for Sept. 5
CQS GLOBAL: Members' Final Meeting Set for Sept. 10
GEORGE WILDE: Shareholders' Meeting Set for Sept. 10
INTEGRATED EUROPEAN: Members' Final Meeting Set for Aug. 30

JAMES FIELD: Shareholders' Final Meeting Set for Oct. 23
LB CAPITAL: Members' Final Meeting Set for Sept. 4
MERU HOLDINGS: Member Receives Wind-Up Report
NANO LTD: Members' Final Meeting Set for Sept. 3
RHINE ALPHA: Members' Final Meeting Set for Sept. 3


G R E N A D A

GRENADA: S&P Affirms 'B-' Sovereign Credit Rating; Outlook Stable


M E X I C O

GRUPO POSADAS: Fitch Keeps Rating on $200-Mil. Sr. Notes at Low-B
HIPOTECARIA SU CASITA: S&P Ups Rating on Class B Notes to 'mxCC'


P U E R T O   R I C O

COSTA BONITA: DF Servicing Loses Bid to Dismiss Case


V I R G I N I A

SUPREME VENTURES: Names as Defendant in Two Lawsuits


X X X X X X X X

* Fitch Lowers LT Issuer Default Ratings on All Banks
* Upcoming Meetings, Conferences and Seminars


                            - - - - -


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


APL FINANCE: Creditors' Proofs of Debt Due Sept. 5
--------------------------------------------------
The creditors of APL Finance Ltd. are required to file their
proofs of debt by Sept. 5, 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, Church Street
         Hamilton
         Bermuda


APL FINANCE: Member to Receive Wind-Up Report on Sept. 24
---------------------------------------------------------
The member of APL Finance Ltd. will receive on Sept. 24, 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, Church Street
         Hamilton
         Bermuda


CIT FINANCIAL: Creditors' Proofs of Debt Due Sept. 5
----------------------------------------------------
The creditors of CIT Financial (Bermuda) Limited are required to
file their proofs of debt by Sept. 5, 2012, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on Aug. 20, 2012.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House, Church Street
         Hamilton
         Bermuda


CIT FINANCIAL: Member to Receive Wind-Up Report on Sept. 25
-----------------------------------------------------------
The member of CIT Financial (Bermuda) Limited will receive on
Sept. 25, 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. 20, 2012.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House, Church Street
         Hamilton
         Bermuda


LAZARD EUROPEAN: Creditors' Proofs of Debt Due Sept. 5
------------------------------------------------------
The creditors of Lazard European Explorer, Ltd. are required to
file their proofs of debt by Sept. 5, 2012, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on Aug. 15, 2012.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House, Church Street
         Hamilton
         Bermuda


LAZARD EUROPEAN: Member to Receive Wind-Up Report on Sept. 25
-------------------------------------------------------------
The member of Lazard European Explorer, Ltd. will receive on
Sept. 25, 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. 15, 2012.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House, Church Street
         Hamilton
         Bermuda


LIGHT HORSE: Creditors' Proofs of Debt Due Sept. 5
--------------------------------------------------
The creditors of Light Horse Partners Ltd. are required to file
their proofs of debt by Sept. 5, 2012, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on Aug. 17, 2012.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House, Church Street
         Hamilton
         Bermuda


LIGHT HORSE: Member to Receive Wind-Up Report on Sept. 26
---------------------------------------------------------
The member of Light Horse Partners Ltd. will receive on
Sept. 26, 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. 17, 2012.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House, Church Street
         Hamilton
         Bermuda



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


* BELIZE: Moody's Corrects June 1 Rating Release
------------------------------------------------
Moody's Investors Service issued a correction to the June 1, 2012
rating release of Belize.

Moody's Investors Service has downgraded Belize's foreign currency
government bond rating to Ca from Caa1 and the government's local
currency bond rating to Caa3 from Caa1. Both ratings have a
developing outlook.

The downgrade reflects the government's deteriorating capacity and
willingness to service its external debt as well as Moody's
assessment of investor losses in the event of a debt
restructuring. Belize faces weak short- to medium-term growth
prospects, accumulating contingent fiscal liabilities and a
questionable outlook for debt sustainability.

Ratings Rationale

In February 2012, Moody's downgraded Belize to Caa1 from B3 citing
concerns about a possible debt restructuring and weak economic
growth. Since then, the government has formed a debt review
committee to undertake a comprehensive assessment of sovereign
debt and contingent liabilities. The authorities have initiated a
process to identify bondholders in advance of restructuring
negotiations.

Moody's expects that the government will proceed with a pre-
emptive debt restructuring this year. The restructuring will be
focused on the $547 million Superbond which accounts for about
half of the government's debt and is itself the result of a
distressed debt exchange completed in 2007.

The decision to contemplate a sovereign debt restructuring was
motivated by an escalation of debt service costs as the Superbond
step-up coupon rose to 8.5% in February from 6% in 2011. The
government's capacity to service its debt is set to weaken due to
declining oil-related revenues and mounting fiscal liabilities
stemming from the nationalizations of Belize Electricity Ltd
(electricity distribution) and Belize Telecommunications Ltd
(telecommunications).

Recent improvements in the fiscal numbers and declining debt
ratios are viewed as transient. Fiscal space remains limited and
public debt is set to report an unsustainable trajectory in coming
years as a result of rising debt service costs and limited growth
prospects.

Moody's analysis indicates that projected net present value (NPV)
losses stemming from the anticipated debt restructuring are
consistent with a Ca rating.

The downgrade of the government bond ratings considered Moody's
"Sovereign Methodology Update: Narrowing the Gap -- a
Clarification of Moody's Approach to Local Vs. Foreign Currency
Bond Ratings." While Moody's analysis of sovereign defaults over
the past two decades indicates that governments are in general
equally likely to default on their domestic and foreign currency
obligations, the methodology update states that distinctions
between foreign and local currency government bond ratings may be
maintained when there is evidence of bias in a government's
ability and/or willingness to service debt in a particular
currency. In the case of Belize, Moody's views the likelihood of
default on external debt as higher than a default on domestic
debt, which accounts for less than 20% of total government debt.

The developing outlook is contingent on the government's
disclosure of the terms of the debt restructuring.

Belize's country ceilings on bonds and deposits were also adjusted
as part of this rating action. The foreign currency bond ceiling
was lowered to Caa2 from B2; the foreign currency deposit ceiling
remains unchanged at Caa2. Belize's local currency bond and
deposit ceilings were lowered to B1 from Ba2.

What Could Change The Rating Up/Down

Future rating actions will depend on the terms of the debt
exchange, the degree of investor participation, and debt
sustainability and growth prospects post-restructuring.

Methodology

The principal methodology used in this rating was Sovereign Bond
Ratings Methodology published in September 2008.



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


BANCO CRUZEIRO: Fails to Win Buyback Approval at First Deadline
---------------------------------------------------------------
Cristiane Lucchesi at Bloomberg News reports that unnamed source
said that Banco Cruzeiro do Sul SA failed to win the required 90%
investor approval by first deadline for a US$1.6 billion bond-
buyback plan.

The source said the bank is confident it will gain the approval
needed by Sept. 12, the final day that investors can tender their
bonds, according to Bloomberg News.  The report relates that
investors who tendered through will be paid a premium of 5
percentage points if the buyback happens, and the bank must now
seek approval from more bondholders without the incentive of a
premium.

Bloomberg News notes that Brazil's deposit-insurance fund, known
as the FGC, has overseen the Sao Paulo-based payroll lender since
the central bank uncovered accounting violations in June.

Bloomberg News says that the bank offered on Aug. 15 to buy back
the bonds at discounted prices as part of a recapitalization plan.

At least 90% of bondholders must accept the offer for it to
proceed, the report notes.

Banco Cruzeiro will be liquidated if the offer fails, Antonio
Carlos Bueno, head of the FGC, said at an Aug. 14 press
conference, the report recalls.

Bloomberg News notes that FGC said the average discount that Banco
Cruzeiro's local and international creditors are being asked to
accept is 49%, according to the.  Bank of America Corp. and HSBC
Holdings Plc are arranging the bond-repurchase offer, Bloomberg
News adds.

                       About Banco Cruzeiro

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. 27, 2012, Standard & Poor's Ratings Services revised the
CreditWatch implications to negative from developing on its 'CC/C'
global scale and 'brCC/brC' Brazilian national scale ratings on
Banco Cruzeiro do Sul S.A.



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


CARYSFORTH INVESTMENTS: Shareholders' Meeting Set for Sept. 14
--------------------------------------------------------------
The shareholders of Carysforth Investments Limited will hold their
final meeting on Sept. 14, 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


CHINA EXPRESS: Members' Final Meeting Set for Sept. 5
-----------------------------------------------------
The members of China Express Inc. will hold their final meeting on
Sept. 5, 2012, to receive the liquidator's report on the company's
wind-up proceedings and property disposal.

The company's liquidator is:

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


CQS GLOBAL: Members' Final Meeting Set for Sept. 10
---------------------------------------------------
The members of CQS Global Distressed Value Opportunities Master
Fund Limited will hold their final meeting on Sept. 10, 2012, to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

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


GEORGE WILDE: Shareholders' Meeting Set for Sept. 10
----------------------------------------------------
The shareholders of George Wilde will hold their final meeting on
Sept. 10, 2012, at 9:00 a.m., to receive the liquidator's report
on the company's wind-up proceedings and property disposal.

The company's liquidator is:

         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


INTEGRATED EUROPEAN: Members' Final Meeting Set for Aug. 30
-----------------------------------------------------------
The members of Integrated European Fund Limited will hold their
final meeting on Aug. 30, 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 House, 2nd Floor
         P.O. Box 1344 Grand Cayman KY1-1108
         Cayman Islands


JAMES FIELD: Shareholders' Final Meeting Set for Oct. 23
--------------------------------------------------------
The shareholders of James Field will hold their final meeting on
Oct. 23, 2012, at 10:00 a.m., to receive the liquidator's report
on the company's wind-up proceedings and property disposal.

The company's liquidator is:

         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


LB CAPITAL: Members' Final Meeting Set for Sept. 4
--------------------------------------------------
The members of LB Capital Corporation III Ltd will hold their
final meeting on Sept. 4, 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:

         Timothy Le Cornu
         c/o Andrea Harris
         Governors Square, Building 6, 2nd Floor
         23 Lime Tree Bay Avenue
         P.O. Box 21237 Grand Cayman KY1-1205
         Cayman Islands
         Telephone: +1 345 947 4700
         Facsimile: +1 345 946 6728


MERU HOLDINGS: Member Receives Wind-Up Report
---------------------------------------------
The sole member of Meru Holdings Ltd. received on Aug. 29, 2012,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

         Lion International Management Limited
         Craigmuir Chambers
         P.O. Box 71 Road Town
         Tortola VG1110
         British Virgin Islands


NANO LTD: Members' Final Meeting Set for Sept. 3
------------------------------------------------
The members of Nano Ltd. will hold their final meeting on Sept. 3,
2012, to receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

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


RHINE ALPHA: Members' Final Meeting Set for Sept. 3
---------------------------------------------------
The members of Rhine Alpha Master Fund will hold their final
meeting on Sept. 3, 2012, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

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



=============
G R E N A D A
=============


GRENADA: S&P Affirms 'B-' Sovereign Credit Rating; Outlook Stable
-----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B-' long-term
foreign and local currency sovereign credit ratings on Grenada.
The outlook remains stable. "We also raised our short-term ratings
on Grenada to 'B' from 'C'," S&P said.
"In our view, several factors constrain the 'B-' rating on
Grenada, including its high net general government debt--expected
to reach 80% of GDP this year--and the high external share of
public debt, weak external liquidity, structurally high current
account deficits, externally dependent economic growth prospects,
and weak political institutions," said Standard & Poor's credit
analyst Kelli Bissett.

The Grenadian economy continues to recover modestly. "We expect
moderate economic growth of 1.5% in 2012, raising per capita GDP
to $8,200, and moderate average annual inflation of 3%. Stay-over
tourist arrivals increased 7% in 2011, and nutmeg production
doubled, reflecting gradual recovery from hurricane damage in 2004
and 2005," said Ms. Bissett. "The risk of potential economic
deterioration in the U.S. or Europe--important sources of tourist

revenues and foreign investment--would increase economic stress on
the Grenadian economy."
"Risks from Grenada's external debt remain high. Its external debt
net of liquid assets exceeded 200% of current account receipts--a
ratio that is higher than those of many Caribbean peers. Lack of
capital market access limits the government's external financing
sources to official entities. External liquidity risk is high
because of structural current account deficits, which were
reported at more than 20% of GDP. Grenada's significant external
financing needs will approach 190% of current account receipts and

usable reserves this year, and we expect this will be financed by
official loans and grants. As is common with small open economies,
Grenada's external accounts are reported with a lag because stocks
and flows are difficult to reconcile," S&P said.

"The change in the short-term rating to 'B' from 'C' results from
the revision of Standard & Poor's criteria on the linkage between
long-term and short-term ratings for sovereigns. According to our
revised criteria, the short-term rating on a sovereign is derived
uniquely from the long-term rating on the sovereign by applying a
linkage that is consistent with that applied to corporate entities
with 'strong or adequate' liquidity," S&P said.



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


GRUPO POSADAS: Fitch Keeps Rating on $200-Mil. Sr. Notes at Low-B
-----------------------------------------------------------------
Fitch Ratings has maintained all ratings of Grupo Posadas S.A.B.
de C.V.'s (Posadas) on Rating Watch Negative, pending the
completion of the proposed sale of its South American hotel
business.  As previously stated on July 19, 2012, Fitch believes
that Posadas' announced divestiture of its South American assets
will benefit the issuer's credit quality.  Posadas expects to use
net proceeds of USD$245 million to engage in liability management.
The Negative Rating Watch is likely to be resolved once the
transaction is concluded and proceeds are received.  Fitch will
then assess the ratings to reflect the new capital structure and
expectations related to liability management.

On a pro forma basis under IFRS, using last 12 months as of June
30, 2012, Posadas' leverage ratios should improve.  Adjusted debt
to EBITDAR should approach 5.0x from 7.1x, and total debt to
EBITDA should approximate 4.1x from 7.1x.  If non-recurrent items
of the fourth quarter of 2011 related to the vacation club and
Ampersand are added back, adjusted total debt to EBITDAR should
further improve to 4.0x, approximating historical levels.
The divestiture will boost liquidity but will also result in the
loss of some geographical diversification.  These assets have
historically generated close to 14% of consolidated revenues and
EBITDA, but during 2011, South American EBITDA was 19% of
consolidated EBITDA due to the non-recurrent items mentioned
above. On July 16, Posadas announced that it had reached an
agreement with Accor S.A. to sell its South American operations
for US$275 million.  These assets include 15 hotels operating
under the Caesar's Park and Caesar's Business brands. The
transaction is expected to close by year-end.
Posadas' ratings are supported by the company's solid business
position, strong brand name and multiple hotel formats.
Conversely, the ratings are tempered by increased leverage, and
exposure to currency fluctuation which can pressure liquidity, and
industry cyclicality.  Posadas' presence in all major urban and
coastal locations in Mexico, consistent product offering and
quality brand image have resulted in occupancy levels that are
above the industry average in Mexico.  The use of multiple hotel
formats allows the company to target domestic and international
business travelers of different income levels as well as tourists,
diversifying its revenue base.
The following ratings remain on Negative Watch:

  -- Local currency Issuer Default Rating (IDR) 'B-';

  -- Foreign currency IDR 'B-';

  -- National scale rating 'B+(mex)';

  -- USD200 million senior notes due 2015 'B-/RR4';

  -- MXN2.25 billion Certificados Bursatiles issuance Posadas08
     due 2013 'B+(mex)'.


HIPOTECARIA SU CASITA: S&P Ups Rating on Class B Notes to 'mxCC'
----------------------------------------------------------------
Standard & Poor's Rating Services raised its long-term national
scale rating-CaVal-to 'mxCC (sf)' from 'D (sf)' on the
subordinated class B residential mortgage-backed notes due 2035, a
cross-border RMBS transaction issued by Hipotecaria Su Casita S.A.
de C.V. SOFOM E.N.R. (Su Casita) and serviced by Patrimonio, S.A.
de C.V. S.F.O.L. (Patrimonio). "At the same time, we raised our
Standard & Poor's underlying rating (SPUR) on the senior class A
notes to 'CC (sf)' from 'D (sf)'. We also raised the SPURs on the
senior series BRHCCB 07U and BRHCCB 07-2U from another RMBS
transaction issued by Su Casita (Hipotecaria Su Casita
Bursatilizaciones de Hipotecas Residenciales III)," S&P said.

"The upgrade of class B follows the fact that interest collections
were sufficient to cover this month's interest payment of MXN1.38
million plus past-due interest from the prior payment date of
MXN1.25 million. At the same time, interest collections were also
sufficient to cover the past-due amounts to the swap provider,
Credit Suisse AG (Credit Suisse, A+/Negative). As a result, we
raised the SPUR on the senior class A notes to 'CC (sf)'," S&P
said.
"On the other hand, the raising of the SPURs on BRHCCB 07U and
BRHCCB 07-2U certificates follows the payment of past-due amounts
to MBIA Mexico S.A. de C.V. (MBIA Mexico; mxBB+/Negative, CaVal
[Mexico] national scale rating and B/Negative/-- Insurer financial
strength rating), as the full financial guarantee insurance policy
provider, from the previous payment date. However, interest
collections were not sufficient to cover this month's due interest

payment for subordinated series BRHCCB 07-3U. Consequently, we are
maintaining its rating on 'D (sf)'," S&P said.

"The deals' default history, the weak financial position of the
trusts, and their decreasing excess spreads limit the ratings on
class B subordinated notes and the SPURs on the class A, BRHCCB
07U, and BRHCCB 07-2U notes," S&P said.
"Our 'B (sf)' rating on the senior class A notes is unchanged,
reflecting the swap guarantee and the full financial guarantee
provided by MBIA Insurance Corp. (B/Negative/--). We also are
maintaining the global scale rating of 'B (sf)' and national scale
rating of 'mxBB+ (sf)' for senior series BRHCCB 07U and BRHCCB 07-
2U due to the full financial guarantee provided by MBIA Mexico.

Under our criteria, the issue rating on an insured bond reflects
the higher of the rating on the bond insurer or the SPUR on the
security. Our SPUR ratings on classes with full bond insurance
reflect the stand-alone capacity of an issue to pay debt service
without giving effect to the external enhancement, in this case,
without the protection given by the bond insurance provided by
MBIA," 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 Report
included in this credit rating report is available at:

         http://standardandpoorsdisclosure-17g7.com
RATINGS RAISED
Hipotecaria Su Casita

Residential mortgage-backed Notes

           Class       Rating           Outs. amount

Class      type    To       From        (mil.)

B          Sub.   mxCC (sf) D (sf)      MXN184.97

A          SPUR   CC (sf)   D (sf)      USD111.36

Hipotecaria Su Casita-Bursatilizaciones de Hipotecas Residenciales
III

             Class       Rating           Outs. amount

Class        type    To       From        (mil.)

BRHCCB 07U   SPUR   CC (sf)   D (sf)      30.46 UDIs

BRHCCB 07-2U SPUR   CC (sf)   D (sf)      145.74 UDIs
OTHER OUTSTANDING RATINGS
Hipotecaria Su Casita-Residential Mortgage Backed Notes

           Class     Rating     Outs. amount

Class      type                 (mil.)

A          Senior    B (sf)      USD111.36
Hipotecaria Su Casita-Bursatilizaciones de Hipotecas Residenciales
III

               Class     Rating      Outs. amount

Class          type                  (mil.)

BRHCCB 07U     Senior    B (sf)      30.46 UDIs

BRHCCB 07U     Senior    mxBB+ (sf)  30.46 UDIs

BRHCCB 07-2U   Senior    B (sf)      145.74 UDIs

BRHCCB 07-2U   Senior    mxBB+ (sf)  145.74 UDIs

BRHCCB 07-3U   Sub.      D (sf)      64.85 UDIs



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


COSTA BONITA: DF Servicing Loses Bid to Dismiss Case
----------------------------------------------------
Bankruptcy Judge Enrique S. Lamoutte denied three motions filed by
DF Servicing LLC in the Chapter 11 case of Costa Bonita Beach
Resort Inc.:

     (1) A motion filed on April 19, 2012, to disqualify the
Debtor's counsel, Charles A. Cuprill, P.S.C., Law Offices pursuant
to 11 U.S.C. Sections 327 and 101(14)(C) and Fed. R. Bankr. P.
2014(a);

     (2) A motion to dismiss the Chapter 11 case for "cause"
pursuant to 11 U.S.C. Sec. 1112(b) alleging (i) that Costa Bonita
filed the case in bad faith; (ii) there is "substantial or
continuing loss or diminution and absence of a reasonable
likelihood of rehabilitation pursuant to 11 U.S.C. Sec. 1112(b)(4)
since ". . . Debtor has no cash flow, is likely balance sheet
insolvent, and has no 'going concern' to preserve in bankruptcy,
the Debtor's estate faces a serious threat of loss or diminution
resulting from the accrual of Chapter 11 administrative expenses;"
and (iii) there is no reasonable likelihood of confirmation
because a Chapter 11 plan cannot be confirmed within a reasonable
time.  DF Servicing also argues in the alternative that the Court
should abstain from hearing the case and dismiss it pursuant to 11
U.S.C. Sec. 305(a)(1); and

     (3) a motion filed on April 19, 2012, seeking appointment of
a Chapter 11 trustee or examiner under 11 U.S.C. Sec. 1104(a), or
to convert case to Chapter 7 under 11 U.S.C. Sec. 1112(b).

A copy of the Court's Aug. 27, 2012 Opinion and Order is available
at http://is.gd/HjUPe3from Leagle.com.

                 About Costa Bonita Beach Resort

Costa Bonita Beach Resort, Inc., owns 50 apartments at the Costa
Bonita Beach Resort in Culebra, Puerto Rico.  It filed a
bankruptcy petition under Chapter 11 of the Bankruptcy Code for
the first time (Bankr. D.P.R. Case No. 09-00699) on Feb. 3, 2009.
During this case, the Court entered an Opinion and Order finding
that the Debtor satisfied all three (3) prongs of the Single Asset
Real Estate, and, as such is a SARE case subject to 11 U.S.C. Sec.
362(d)(3). The Court also entered an Order modifying the automatic
stay to allow creditor DEV, S.E., to continue in state court
proceedings for the removal of the illegal easement and the
restoration of DEV, S.E.'s land to its original condition by the
Debtor.  The first bankruptcy petition was dismissed on May 10,
2011 on the grounds that the Debtor failed to comply with an April
21, 2011 Order and the Debtor's failure to maintain adequate
insurance.  The case was subsequently closed on Oct. 11, 2011.

Costa Bonita Beach Resort filed a second bankruptcy petition
(Bankr. D. P.R. Case No. 12-00778) on Feb. 2, 2012, in Old San
Juan, Puerto Rico.  In the 2012 petition, the Debtor said assets
are worth $15.1 million with debt totaling $14.2 million,
including secured debt of $7.8 million.  The apartments are valued
at $9.6 million while a restaurant and some commercial spaces at
the resort are valued at $3.67 million.  The apartments serve as
collateral for the $7.8 million while the commercial property is
unencumbered.

Bankruptcy Judge Enrique S. Lamoutte presides over the 2012 case.
Charles Alfred Cuprill, Esq., serves as counsel in the 2012 case.
The petition was signed by Carlos Escribano Miro, president.



===============
V I R G I N I A
===============


SUPREME VENTURES: Names as Defendant in Two Lawsuits
----------------------------------------------------
RJR News reports that Supreme Ventures Limited has been named as a
defendant in lawsuits filed by British Virgin Islands-based
companies Talisman Capital Alternative Investment Fund Limited and
EGE Limited.

Supreme Ventures has informed the Jamaica Stock Exchange that the
suit by Talisman arises out of a filing for bankruptcy by a former
Director of SVL, Paul G Mouttet, who resigned from the Board in
June 2007, according to RJR News.

RJR News notes that Supreme Ventures said the suit makes several
claims against it in connection with Mr. Mouttet that it finds
baseless.

It said the connected suit by EGE Limited is an attempt by the
company to retry a matter related to two forward sale of shares
agreements, RJR News says.

RJR News discloses that it involved the founding shareholders of
SVL, Epsilon Global Master Fund and several Epsilon related
entities which are connected to EGE.

SVL said the matter was already decided in the courts in Jamaica
in favor of the founding shareholders and SVL defendants, RJR News
notes.

RJR News discloses that its therefore expecting to have its
position upheld by the Florida courts.



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


* Fitch Lowers LT Issuer Default Ratings on All Banks
-----------------------------------------------------
Fitch Ratings has downgraded the Long-term Issuer Default Ratings
(IDR) of Banca Popolare di Sondrio (BPSondrio) and Banco di Desio
e della Brianza (BDB) to 'BBB+' from 'A-', and the Long-term IDR
of Banca Popolare di Milano (BPMilano) to 'BBB-' from 'BBB'.  The
agency has also downgraded the Long-term IDRs of Banca Carige,
Banca Popolare di Vicenza (BPVicenza), Credito Valtellinese
(CreVal) and Veneto Banca to 'BB+' from 'BBB'.  Simultaneously,
Fitch has affirmed the Long-term IDRs of Banca Popolare
dell'Emilia Romagna (BPER) at 'BBB' and of Credito Emiliano
(Credem) at 'BBB+'.

The Outlooks on all the banks' Long-term IDRs is Negative.

Rating Action Rationale And Rating Drivers And Sensitivies - Idrs
And Vrs

The rating actions follow a periodic review of the nine banking
groups.  The Negative Outlook on the banks' Long-term IDRs
reflects the pressure arising from the current challenges in the
operating environment, where access to wholesale funding has
become more difficult and pressure on profitability remains high.
The VRs and therefore the IDRs of all the banks would come under
pressure if operating profitability deteriorated further or if the
inflow of new impaired loans materially rose for a prolonged
period of time.  Fitch currently expects Italian GDP to contract
by 1.9% in 2012 and to show zero growth in 2013.  The banks'
ratings are also sensitive to material deterioration in funding
and liquidity.

The liquidity of the nine banking groups has come under pressure
as funding conditions have deteriorated materially since H211, and
all banks have accessed funding from the European Central Bank
(ECB), albeit to different degrees.  Fitch considers the funding
of some of the banks to be more reliant on institutional funding
than their peers, and wholesale maturities vary across banks, but
the agency expects that the banks will all continue to concentrate
on retail deposits and bonds issued to retail clients, as these
are viewed as a more stable funding source.  The agency currently
expects that, although liquidity has tightened, all banks will
maintain access to funding from the ECB as they have worked on
increasing the availability of eligible assets for central bank
refinancing operations.  A material deterioration of access to the
interbank markets and ECB liquidity would put significant pressure
on ratings.

For the banks' Outlooks to be revised to Stable and ratings to
come under upward pressure, a material improvement in the
operating environment, which would allow the banks to strengthen
their operating profitability and reduce their large stocks of
impaired loans, would be necessary.

The key rating drivers and sensitivities for the IDRs and VRs of
each bank (in addition to the rating drivers and sensitivities
that are applicable to all nine banking groups) are:

BANCA CARIGE

Banca Carige's IDRs and VR have been downgraded because Fitch
expects the bank's performance and asset quality to remain under
pressure in the current operating environment.  Banca Carige's
fast growth in recent years has helped it to report adequate
operating profitability, but Fitch expects loan impairment charges
to increase in the weak operating environment.

Banca Carige's ratings are based on Fitch's expectation that the
bank will manage to strengthen its capitalisation, which currently
is weak with a Fitch core capital ratio of 5.9% at end-June 2012.
The bank plans to reorganise its group structure to benefit from
tax benefits relating to goodwill write-downs.  This should allow
the bank to improve its regulatory core Tier 1 ratio to about 9%
at end-2012, although Fitch considers this modest given the bank's
weak asset quality.

Banca Carige's VR and IDRs are sensitive to a further material
deterioration in asset quality.  The ratings would come under
pressure if the bank did not manage to improve its capitalisation
as planned or if profitability materially dropped.

BPER

BPER's VR and IDRs have been affirmed because Fitch considers the
bank's operating performance, capitalisation and funding structure
relatively resilient in the current economic downturn.  The bank's
asset quality is weak with gross impaired loans equal to a high
11.7% of gross loans at end-2011, and will deteriorate further
given the weak economic performance in Italy.  However, BPER's
pre-impairment operating profitability has remained adequate, and
Fitch expects the bank to generate sufficient earnings to cover
rising loan impairment charges.

BPER's VR and IDRs are sensitive to a sharper than expected
deterioration in asset quality as net impaired loans already
account for a significant proportion of the bank's equity.  The
ratings would also come under pressure if the bank's ability to
generate earnings deteriorated materially or if the bank failed to
maintain its capitalisation.

Meliorbanca's ratings reflect its full ownership by BPER and its
integration with the parent bank.  Although Fitch does not
consider Meliorbanca a core subsidiary of BPER, it assigns the
same IDRs based on support from its parent, as the agency believes
that failure to support Meliorbanca would constitute significant
reputational risk for BPER.  In addition, the planned merger of
Meliorbanca into the parent underpins the equalisation of
Meliorbanca's IDR with that of its parent.  Meliorbanca's IDRs are
sensitive to changes in its parent's propensity to provide
support, which Fitch currently does not expect, or to changes in
BPER's IDRs.

BPMILANO

BPMilano's VR and Long-term IDR have been downgraded to reflect
Fitch's expectations that the bank's weak performance and asset
quality will remain under pressure in the current difficult
operating environment.  Fitch expects the bank to improve cost
efficiency and to strengthen its operating performance under its
new business plan, which was announced in July 2012.  Improvements
in performance are likely to be gradual, but the agency expects a
speedy implementation of the bank's cost reduction measures.
Fitch considers BPMilano's capitalisation acceptable as reported
regulatory capital ratios are depressed by regulatory add-ons on
risk-weighted assets.  At end-March 2012, the bank's core Tier 1
ratio stood at 8.3%, but excluding the regulatory add-ons, the
ratio would have been a stronger 10.3%.  Regulatory capital,
however, includes EUR500m hybrid instruments held by the Italian
government, which the bank plans to repay in 2013.

Fitch expects BPMilano's asset quality to deteriorate further in
the current weak operating environment.  However, the bank
strengthened the coverage of impaired loans with loan impairment
allowances in 2011, which should help to mitigate the impact of
further asset quality deterioration.

The 'CCC' rating assigned to BPMilano's hybrid instruments and
preferred stock has been affirmed.  The rating reflects heightened
non-performance risk for these instruments after the bank's
announcement that coupon payments would only be made if the bank
was contractually obliged to do so.

BPMilano's VR and IDRs are sensitive to further material
deterioration in asset quality or performance. Failure to
implement the measures to improve the bank's cost efficiency and
earnings generation would put pressure on the ratings, as would
failure to meet its target capitalisation.  Upward pressure on the
bank's ratings would require a material improvement in operating
profitability.

BPSONDRIO

BPSondrio's VR and Long-term IDR have been downgraded because
Fitch considers that the current difficult operating environment
has resulted in increased pressure on the bank's performance and
asset quality.  Fitch expects the bank to be more resilient than
many of its peers, which underpins BPSondrio's VR, and Long-term
IDR, at 'bbb+' and 'BBB+', respectively.  BPSondrio currently
benefits from sound asset quality, which deteriorated throughout
the downturn but remains significantly better than the peer
average.  Fitch considers the bank's funding adequate.  The bank
receives its medium- and long-term funding predominantly from its
customers, but it also accesses unsecured interbank and
institutional funding.  Liquidity risk related to this form of
funding is mitigated by the bank's increased portfolio of
unencumbered ECB-eligible assets.
The bank's profitability has been more volatile than some of its
peers, but this has in part been caused by valuation changes of
its portfolio of Italian government bonds, a relatively large
proportion of which is held in the trading portfolio.  Fitch
considers BPSondrio's capitalisation with a FCC ratio of 7.5% at
end-2011 acceptable given the bank's relatively sound asset
quality, but the agency considers this level of capitalisation
lower than the capitalisation of similarly rated peers.

BPSondrio's IDRs and VR are sensitive to a material deterioration
in asset quality or operating profitability.

BPVICENZA

The downgrade of BPVicenza's IDRs and VR reflects Fitch's
expectation that the bank will face challenges in improving its
profitability, funding and capitalisation in the difficult
operating environment.  BPVicenza's operating profitability
remained weaker than most of its peers' in 2011, and higher loan
impairment charges weighed on H112 operating profit.  The bank has
taken measures to reduce operating expenses and is concentrating
on managing its asset quality, which has deteriorated.  Fitch
considers the coverage of the bank's impaired loans weaker than at
some peers.

The bank has managed to increase customer funding through term
deposits gathering and the sale of bonds to its retail customers,
and its loan/customer funding ratio (including deposits and bonds
sold to retail clients) improved in H112.  However, the bank will
have to continue to rebalance its funding mix as its liquidity
currently is underpinned by funding received from the ECB.
BPVicenza plans to strengthen its capital ratios, which Fitch
currently considers only just acceptable given the high level of
impaired loans.  The agency expects the bank to reach its target
core Tier 1 capital ratio of 9% by end-2013.
BPVicenza's VR and IDRs would come under pressure if the bank does
not achieve its goal of rebalancing its funding mix by increasing
retail deposits and bonds issued to retail clients while limiting
loan growth.  The ratings would also come under pressure if the
bank does not manage to reach its target capitalisation.

BDB

BDB's VR and Long-term IDR have been downgraded because Fitch
expects that the current difficult operating environment will
result in increased pressure on the bank's performance and asset
quality.  In addition, the downgrade reflects Fitch's expectation
that the bank's FY12 profitability will be depressed by one-off
charges (around EUR42m) to cover the cost of the orderly
liquidation of BDB's Swiss subsidiary.  Fitch expects BDB's
operating performance to remain more resilient than that of many
of its peers, and notes that bank's funding is firmly based on
retail deposits and bonds issued to customers through the bank's
branch network; both of which underpin the bank's 'bbb+' VR and
'BBB+' Long-term IDR. .

BDB's asset quality has deteriorated but remained sound,
benefiting from its tight lending criteria, which have been in
place for many years.  Fitch expects asset quality to decline
further, but less so than at many of its peers; combined with
sound capitalisation, this means that Fitch expects the bank to
perform better than most of its peers throughout the current
market downturn.

BDB appointed a new chief executive officer in 2012 after a Bank
of Italy inspection revealed some weaknesses related to
information technology, organisation and regulatory controls.
Fitch understands that controls have been strengthened. BDB has
announced that it is closing down its Swiss subsidiary.

BDB's IDRs and VR would come under pressure if further problems
related to weaknesses in its internal control environment came to
light, or if further losses related to these problems
materialised.  The ratings would also come under pressure if asset
quality or operating profitability weakened substantially, both of
which Fitch does not currently expect.

CREDEM

Credem's VR and IDRs have been affirmed because Fitch expects the
bank's operations to remain more resilient than most of its peers'
during the current economic downturn.  Fitch considers the bank's
operating profitability, asset quality and capitalisation
adequate.

The bank generated an operating return on equity of around 11% in
2011 and Q112, and its asset quality is sound, with gross impaired
loans equal to a low 4.2% of gross loans at end-March 2012.  Fitch
expects asset quality to deteriorate somewhat given the weak
economic environment in Italy, but the growth of impaired loans
should remain easily manageable for the bank.  Fitch considers the
bank's Fitch core capital ratio of 8.8% at end-March 2012 adequate
considering the relatively moderate level of net impaired loans.

Credem's VR and IDRs are sensitive to a material deterioration in
operating profitability and asset quality and to a deterioration
in the bank's funding structure.  Ratings would also come under
pressure if the bank failed to maintain its capitalisation.

CREVAL

CreVal's IDRs and VR have been downgraded because Fitch expects
that the bank's weak performance, asset quality and capitalisation
will remain under pressure in the difficult operating environment.

The bank's operating performance has remained under pressure as
higher loan impairment charges have weighed on operating profit.
CreVal's asset quality has suffered during the current economic
downturn, and gross impaired loans were equal to a high 9.55% of
gross loans at end-June 2012.  Impairment allowance coverage of
impaired loans has declined but remains at higher levels than that
of many peers.

The bank's capitalisation improved after the conversion of a
convertible bond to a Fitch core capital ratio of 6.6% at end-June
2012 from a weak 4.02% at end-2011, which was affected by negative
valuation reserves on the bank's Italian government bond
portfolio.  CreVal expects to achieve a 7% Basel III common equity
Tier 1 ratio by end-2012, including the effect of deducting
negative revaluation reserves related to its Italian government
bond portfolio.  However, CreVal has not yet repaid hybrid capital
issued to the government, which contributes about 95bp to its 8%
regulatory core Tier 1 ratio at end-June 2012 (including the
effect of the sale of its asset management subsidiaries).

CreVal's VR and IDRs would come under pressure if asset quality
deteriorated further or if the bank did not reach its target
capitalisation.  The ratings are also sensitive to a further
deterioration in the bank's performance or funding structure.

Credito Artigiano's IDRs are equalised with its parent's and
reflect Fitch's view that Credito Artigiano, which operates as
CreVal's distribution network in parts of Lombardy and other
regions, is a core subsidiary of CreVal.  CreVal announced that it
will merge Credito Artigiano into the parent bank by end-August
2012, which underpins the integration of the subsidiary.

Veneto Banca

Veneto Banca's IDRs and VR have been downgraded because Fitch
expects the bank's performance and asset quality to remain under
pressure in the current operating environment.  Veneto Banca
generated a 1.64% operating return on average equity (ROAE) in
2011 as loan impairment charges increased, and Fitch expects these
to remain high given the weak performance of the domestic economy.
The bank's asset quality has deteriorated, and gross impaired
loans were equal to 8.35% of gross loans at end-2011. Fitch
considers the coverage of the bank's impaired loans weaker than at
some of its peers.
Veneto Banca's Fitch core capital ratio of 5.9% at end-2011 was
affected by negative valuation reserves on the bank's Italian bond
portfolio, but Fitch expects the bank's capital ratios to improve
significantly over the coming months.  The bank concentrates on
attracting retail funding to strengthen its liquidity further.

Veneto Banca's VR and IDRs would come under pressure if the bank
did not reach its target capitalisation, if asset quality
deteriorated materially further than Fitch expects or if the
bank's operating profitability did not stabilise at an adequate
level.

Rating Drivers And Sensitivities - Support Rating And Support
Rating Floor

Fitch has affirmed the Support Ratings (SRs) and Support Rating
Floors (SRFs) for all the banks at their current level.  The SRs
reflect Fitch's expectation of the probability that the
authorities would provide support to the banks if needed.  Fitch
notes that the medium-sized banks have strong local franchises and
have relatively large customer funding bases.  Customer funding
from retail clients also includes senior and, to a lesser extent,
subordinated debt distributed through the banks' branch network.

Fitch's assumptions for support are based on the expectation that
in the current difficult market environment the propensity to
support local banks remains high.  The SRs of all banks subject to
today's rating actions is '3', with the exception of BDB, whose
'4' SR and 'B+' SRF reflects its ownership structure and its
relatively small size.

The SRs are sensitive to any change in assumptions around the
propensity or ability of the Italian authorities to provide timely
support to the banks.  This might arise if the authorities became
subject to external constraints to support all senior creditors of
a bank, or if there was a change in the authorities' approach to
supporting local banks, which Fitch currently does not expect.
The Italian state's ability to provide such support is dependent
upon its creditworthiness, reflected in its 'A-' Long-term rating
with a Negative Outlook.

Subordinated Debt and Other Hybrid Securities

Subordinated debt and hybrid capital instruments issued by the
banks are notched down from the issuers' VRs in accordance with
Fitch's assessment of each instrument's respective non-performance
and relative loss severity risk profiles, which vary considerably.
The ratings of subordinated debt and hybrid securities are
sensitive to any change in the banks' VRs or to changes in the
banks' propensity to make coupon payments that are permitted but
not compulsory under the instruments' documentation.

The rating actions are as follows:

Banca Carige

  -- Long-term IDR: downgraded to 'BB+' from 'BBB'; Outlook
     Negative

  -- Short-term IDR: downgraded to 'B' from 'F3'

  -- Viability Rating: downgraded to 'bb+' from 'bbb'

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: affirmed at 'BB'

  -- Senior unsecured notes: long-term rating downgraded to 'BB+'
     from 'BBB'; short-term rating downgraded to 'B' from 'F3'

  -- Subordinated notes: downgraded to 'BB' from 'BBB-'

Banca Popolare dell'Emilia Romagna

  -- Long-term IDR: affirmed at 'BBB'; Outlook Negative

  -- Short-term IDR: affirmed at 'F3'

  -- Viability Rating: affirmed at 'bbb'

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: affirmed at 'BB+'

  -- Senior unsecured notes and EMTN programme: affirmed at

     'BBB'/'F3'

  -- Subordinated notes: affirmed at 'BBB-'

Meliorbanca

  -- Long-term IDR: affirmed at 'BBB'; Outlook Negative

  -- Short-term IDR: affirmed at 'F3'

  -- Support Rating: affirmed at '2'

  -- Senior unsecured debt: affirmed at 'BBB'

Banca Popolare di Milano

  -- Long-term IDR: downgraded to 'BBB-' from 'BBB'; Outlook

     Negative

  -- Short-term IDR: affirmed at 'F3'

  -- Viability Rating: downgraded to 'bbb-' from 'bbb'

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: affirmed at 'BB+'

  -- Senior unsecured notes and EMTN programme: long-term rating
     downgraded to 'BBB-' from 'BBB'; short-term rating affirmed
     at 'F3'

  -- Subordinated Lower Tier 2 debt: downgraded to BB+' from
     'BBB-'

  -- Preferred stock and hybrid capital instruments: affirmed at
     'CCC'

Banca Popolare di Sondrio

  -- Long-term IDR: downgraded to 'BBB+' from 'A-'; Outlook
     Negative

  -- Short-term IDR: affirmed at 'F2'

  -- Viability Rating: downgraded to 'bbb+' from 'a-'

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: affirmed at 'BB'

Banca Popolare di Vicenza
  -- Long-term IDR: downgraded to 'BB+' from 'BBB'; Outlook
     Negative

  -- Short-term IDR: downgraded to 'B' from 'F3'

  -- Viability Rating: downgraded to 'bb+' from 'bbb'

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: affirmed at 'BB'

  -- Senior unsecured notes and EMTN programme: long-term rating
     downgraded to 'BB+' from 'BBB'; short-term rating: downgraded
     to 'B' from 'F3'

  -- Market-linked senior notes: downgraded to 'BB+emr' from
     'BBBemr'

  -- Subordinated Lower Tier 2 notes: downgraded to 'BB' from
     'BBB-'

Banco di Desio e della Brianza

  -- Long-term IDR: downgraded to 'BBB+' from 'A-'; Outlook
     Negative

  -- Short-term IDR: affirmed at 'F2'

  -- Viability Rating: downgraded to 'bbb+' from 'a-'

  -- Support Rating: affirmed at '4'

  -- Support Rating Floor: affirmed at 'B+'

Credito Emiliano

  -- Long-term IDR: affirmed at 'BBB+'; Outlook Negative

  -- Short-term IDR: affirmed at 'F2'

  -- Viability Rating: affirmed at 'bbb+'

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: affirmed at 'BB'

  -- Senior unsecured notes and EMTN programme: affirmed at 'BBB+'

Credito Valtellinese

  -- Long-term IDR: downgraded to 'BB+' from 'BBB'; Outlook
     Negative

  -- Short-term IDR: downgraded to 'B' from 'F3'

  -- Viability Rating: downgraded to 'bb+' from 'bbb'

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: affirmed at 'BB'

  -- Senior unsecured notes, including notes guaranteed by Credito

  -- Valtellinese, and EMTN programme: long-term rating downgraded
     to 'BB+' from 'BBB'; short-term rating: downgraded to 'B'
     from 'F3'

Credito Artigiano

  -- Long-term IDR: downgraded to 'BB+' from 'BBB'; Outlook

     Negative

  -- Short-term IDR: downgraded to 'B' from 'F3'

  -- Support Rating: downgraded to '3' from '2'

Veneto Banca
  -- Long-term IDR: downgraded to 'BB+' from 'BBB'; Outlook
     Negative

  -- Short-term IDR: downgraded to 'B' from 'F3'

  -- Viability Rating: downgraded to 'bb+' from 'bbb'

  -- Support Rating: affirmed at '3'

  -- Support Rating Floor: affirmed at 'BB'

  -- Senior unsecured notes and EMTN programme: long-term rating
     downgraded to 'BB+' from 'BBB'; short-term rating: downgraded
     to 'B' from 'F3'

  -- Subordinated Perpetual Tier 1 notes: downgraded to 'B' from
     'BB-'


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

Sept. 13-14, 2012
   AMERICAN BANKRUPTCY INSTITUTE
      9th Annual Complex Financial Restructuring Program
         Four Seasons Hotel, Las Vegas, Nev.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Sept. 13-15, 2012
   AMERICAN BANKRUPTCY INSTITUTE
      20th Annual Southwest Bankruptcy Conference
         Four Seasons Hotel, Las Vegas, Nev.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Sept. 19-20, 2012
   AMERICAN BANKRUPTCY INSTITUTE
      38th Annual Lawrence P. King and Charles Seligson
      Workshop on Bankruptcy & Business Reorganizations
         New York University School of Law, New York, N.Y.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Oct. 4, 2012
   AMERICAN BANKRUPTCY INSTITUTE
      Nuts & Bolts: Bankruptcy Fundamentals for
      Young and New Practitioners
         Charles Evans Whittaker Courthouse, Kansas City, Mo.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Oct. 5, 2012
   AMERICAN BANKRUPTCY INSTITUTE
      32nd Annual Midwestern Bankruptcy Institute & Consumer Forum
         Kansas City Marriott Downtown, Kansas City, Mo.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Oct. 5, 2012
   AMERICAN BANKRUPTCY INSTITUTE
      Bankruptcy 2012: Views from the Bench
         Georgetown University Law Center, Washington, D.C.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Oct. 8, 2012
   AMERICAN BANKRUPTCY INSTITUTE
      5th Annual Chicago Consumer Bankruptcy Conference
         University of Chicago Gleacher Center, Chicago, Ill.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Oct. 18, 2012
   AMERICAN BANKRUPTCY INSTITUTE
      International Insolvency & Restructuring Symposium
         Parco dei Principi Grand Hotel & Spa, Rome, Italy
            Contact:   1-703-739-0800; http://www.abiworld.org/

Oct. 26, 2012
   AMERICAN BANKRUPTCY INSTITUTE
      NCBJ/ABI Educational Program
         San Diego Marriott Marquis and Marina, San Diego, Calif.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Nov. 1-2, 2012
   AMERICAN BANKRUPTCY INSTITUTE
      Corporate Restructuring Competition
         Wharton University of Pennsylvania, Philadelphia, Pa.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Nov. 1-3, 2012
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Annual Convention
         Westin Copley Place, Boston, Mass.
            Contact: http://www.turnaround.org/

Nov. 12, 2012
   AMERICAN BANKRUPTCY INSTITUTE
      Detroit Consumer Bankruptcy Conference
         [Location Undetermined]
            Contact:   1-703-739-0800; http://www.abiworld.org/

Nov. 26, 2012
   BEARD GROUP, INC.
      19th Annual Distressed Investing Conference
          The Helmsley Park Lane Hotel, New York, N.Y.
          Contact:   240-629-3300 or http://bankrupt.com/

Nov. 29-30, 2012
   MID-SOUTH COMMERCIAL LAW INSTITUTE
      33rd Annual Bankruptcy & Commercial Law Seminar
         Nashville Marriott at Vanderbilt, Nashville, Tenn.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Nov. 29 - Dec. 1, 2012
   AMERICAN BANKRUPTCY INSTITUTE
      Winter Leadership Conference
         JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Dec. 4-8, 2012
   AMERICAN BANKRUPTCY INSTITUTE
      ABI/SJUSL Mediation Training Symposium
         St. John's University, Queens, N.Y.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Feb. 20-22, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      VALCON
         Four Seasons Las Vegas, Las Vegas, Nev.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Apr. 10-12, 2013
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Spring Conference
         JW Marriott Chicago, Chicago, Ill.
            Contact: http://www.turnaround.org/

Apr. 18-21, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Annual Spring Meeting
         Gaylord National Resort & Convention Center,
         National Harbor, Md.
            Contact:   1-703-739-0800; http://www.abiworld.org/

June 13-16, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Central States Bankruptcy Workshop
         Grand Traverse Resort, Traverse City, Mich.
            Contact:   1-703-739-0800; http://www.abiworld.org/

July 11-13, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Northeast Bankruptcy Conference
         Hyatt Regency Newport, Newport, R.I.
            Contact:   1-703-739-0800; http://www.abiworld.org/

July 18-21, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Southeast Bankruptcy Workshop
         The Ritz-Carlton Amelia Island, Amelia Island, Fla.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Aug. 8-10, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Mid-Atlantic Bankruptcy Workshop
         Hotel Hershey, Hershey, Pa.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Aug. 22-24, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Southwest Bankruptcy Conference
         Hyatt Regency Lake Tahoe, Incline Village, Nev.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Oct. 3-5, 2013
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Annual Convention
         Marriott Wardman Park, Washington, D.C.
            Contact: http://www.turnaround.org/

Nov. 1, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      NCBJ/ABI Educational Program
         Atlanta Marriott Marquis, Atlanta, Ga.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Dec. 2, 2013
   BEARD GROUP, INC.
      19th Annual Distressed Investing Conference
          The Helmsley Park Lane Hotel, New York, N.Y.
          Contact:   240-629-3300 or http://bankrupt.com/

Dec. 5-7, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Winter Leadership Conference
         Terranea Resort, Rancho Palos Verdes, Calif.
            Contact:   1-703-739-0800; http://www.abiworld.org/

The Meetings, Conferences and Seminars column appears in the
Troubled Company Reporter each Wednesday.  Submissions via
e-mail to conferences@bankrupt.com are encouraged.


                            ***********


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.


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