TCRLA_Public/121003.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, October 3, 2012, Vol. 13, No. 197


                            Headlines



A N T I G U A  &  B A R B U D A

STANFORD INT'L: US Receiver Wins Ruling Over Owner's Ex-GF


A R G E N T I N A

HAEDO CAFE: Creditors' Proofs of Debt Due Nov. 21
METROGAS SA: YPF Delays Put 55-Cent Default Deal in Doubt
NOVO FRIO: Creditors' Proofs of Debt Due Oct. 16
SAN MIGUEL: Creditors' Proofs of Debt Due Nov. 8
VIAJES PRATS: Creditors' Proofs of Debt Due Oct. 3

* ARGENTINA: Moody's Takes Negative Rating Actions on Insurers


C A Y M A N  I S L A N D S

ASSET FINANCE: Creditors' Proofs of Debt Due Oct. 22
HIGHGATE GLOBAL DYNAMIC: Creditors' Proofs of Debt Due Oct. 22
HIGHGATE GLOBAL QUANT: Creditors' Proofs of Debt Due Oct. 22
LAICA INVESTMENTS: Creditors' Proofs of Debt Due Oct. 3
NORTHWOOD CAPITAL: Creditors' Proofs of Debt Due Oct. 8

SUBCO V CAYMAN: Commences Liquidation Proceedings
TIME TRANSPORTATION: Creditors' Proofs of Debt Due Oct. 10
TOKYOR ASSET: Creditors' Proofs of Debt Due Oct. 3
TWIN ELITE: Placed Under Voluntary Wind-Up


C O L O M B I A

* COLOMBIA: Moody's Says Outlook for Banking System Stable


E C U A D O R

* ECUADOR: To Get $40 Million IDB Loan for Children Care


G U A T E M A L A

BANCO DE DESARROLLO: Fitch Raises Issuer Default Rating to 'BB+'
GUATEMALAN BANCO: Fitch Affirms 'BB' Issuer Default Rating


                            - - - - -


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A N T I G U A  &  B A R B U D A
===============================


STANFORD INT'L: US Receiver Wins Ruling Over Owner's Ex-GF
----------------------------------------------------------
Caribbean360.com reports that U.S. District Court Judge David
Godbey has ruled in favor of U.S. court-appointed receiver for the
Stanford International Bank Ralph Janvey in a case against Andrea
Stoelker, former girlfriend of disgraced financier Robert Allen
Stanford and a former Stanford Financial Group executive.

Court documents revealed Judge Godbey issued his final judgment
against Stoelker on September 24 in which he ordered her to pay
more than US$600,000 to the receivers on a complaint filed in 2010
in the U.S. District Court for the Northern District of Texas
Dallas Division, according to Caribbean360.com.

The report notes that according to the complaint, Ms. Stoelker,
was the former president of Stanford Financial Group Global
Management LLC, the former president of Stanford 20/20 (Stanford's
cricket organization), and Stanford's girlfriend.

According to the 2010 complaint, "revenue from the sale of
fraudulent certificates of deposit generated substantially all of
the income for the Stanford defendants and the many related
Stanford entities," and Janvey identified more than US$560,000 in
transfers of CD proceeds from Stanford parties to Ms. Stoelker,
the report discloses.

"Each payment of CD proceeds from the Stanford parties to Stoelker
was made with actual intent to hinder, delay, and defraud the
Stanford parties' creditors," Mr. Janvey asserted in the
complaint, the report relays.

The report recalls that in the September 24 judgment, Judge Godbey
ordered Ms. Stoelker to pay US$568,206 in voidable fraudulent
transfers she received, US$35,748 in attorneys' fees and US$406 in
costs and expenses, as well as prejudgment interest at the rate of
6% per year, as calculated from the date of each respective
transfer to Ms. Stoelker.

                      About Stanford International

Domiciled in Antigua, Stanford International Bank Limited --
http://www.stanfordinternationalbank.com/-- is a member of
Stanford Private Wealth Management, a global financial services
network with US$51 billion in deposits and assets under
management or advisement.  Stanford Private Wealth Management
serves more than 70,000 clients in 140 countries.

On Feb. 16, 2009, the United States District Court for the
Northern District of Texas, Dallas Division, signed an order
appointing Ralph Janvey as receiver for all the assets and
records of Stanford International Bank, Ltd., Stanford Group
Company, Stanford Capital Management, LLC, Robert Allen Stanford,
James M. Davis and Laura Pendergest-Holt and of all entities they
own or control.  The February 16 order, as amended March 12,
2009, directs the Receiver to, among other things, take control
and possession of and to operate the Receivership Estate, and to
perform all acts necessary to conserve, hold, manage and preserve
the value of the Receivership Estate.



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


HAEDO CAFE: Creditors' Proofs of Debt Due Nov. 21
-------------------------------------------------
Mario Adrian Narisna, the court-appointed trustee for Haedo Cafe
SRL's bankruptcy proceedings, will be verifying creditors' proofs
of claim until Nov. 21, 2012.

Mr. Narisna will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 7 in Buenos Aires, with the assistance of Clerk
No. 14, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.

The Trustee can be reached at:

         Mario Adrian Narisna
         Tucuman 1455
         Argentina


METROGAS SA: YPF Delays Put 55-Cent Default Deal in Doubt
---------------------------------------------------------
Camila Russo at Bloomberg News reports that Metrogas SA's
creditors risk losing the chance to recoup any money from their
defaulted bonds as takeover talks between Argentina's biggest gas
distributor and state-owned oil producer YPF SA stall.

Metrogas's dollar bonds maturing in 2014 dropped as far as 30.05
cents on the dollar last week, the lowest since Aug. 30, after a
Sept. 27 meeting between BG Inversiones Argentinas SA, the
company's majority owner, and YPF was postponed, according to
Bloomberg News.  The report relates that yields on utility debt in
Latin America fell eight basis points, or 0.08 percentage point,
to 5.53% in the same period.

Bloomberg News notes that under a debt restructuring last month,
creditors are in line to get 55 cents on the dollar in new bonds.

Bloomberg News discloses that without YPF, which was seized by
President Cristina Fernandez de Kirchner in April, Metrogas SA has
less of a chance of being allowed to raise rates that have been
capped since 1999, according to Tom Mullen, a partner at TWM
Capital LP.  That increases the likelihood the company, which
doesn't even have money to pay its suppliers, will default again,
Bloomberg News says.

"It's very likely that they'll end up delaying the deal," Mr.
Mullen told Bloomberg in a telephone interview.  That "results in
more of the same: suppliers not getting paid and the company
getting backed into a corner," Mr. Mullen added.

Metrogas is 70% owned by Gas Argentino SA, which is 55% owned by
BG Inversiones, a unit of the U.K.'s BG Group Plc. (BG/) YPF SA
owns the rest.   YPF was expropriated by the government in April.

                          About MetroGas

Buenos Aires, Argentina-based MetroGAS S.A., a gas distribution
company, was incorporated on Nov. 24, 1992, and began operations
on Dec. 29, 1992, when the privatization of Gas del Estado S.E.
("GdE") (an Argentine Government-owned enterprise) was completed.

Through Executive Decree No. 2,459/92 dated Dec. 21, 1992, the
Argentine Government granted MetroGAS an exclusive license to
provide the public service of natural gas distribution in the area
of the Federal Capital and southern and eastern Greater Buenos
Aires, by operating the assets allocated to the Company by GdE for
a 35 year period from the Takeover Date (Dec. 28, 1992).  This
period can be extended for an additional 10 year period under
certain conditions.

MetroGAS' controlling shareholder is Gas Argentino S.A. ("Gas
Argentino") who holds 70% of the Common Stock of the Company.  The
20%, which was originally owned by the National Government, was
offered in public offering and the remaining 10% is under the
Employee Stock Ownership Plan ("Programa de Propiedad Participada"
or "PPP").

                       Going Concern Doubt

Price Waterhouse & Co. S.R.L., in Buenos Aires, Argentina,
expressed substantial doubt about MetroGas S.A.'s ability to
continue as a going concern, following the Company's 2011 results.
The independent auditors noted of the uncertainties related to the
suspension of the original regime for tariff adjustments and the
Company's petition for voluntary reorganization in an Argentine
Court on June 17, 2010.


NOVO FRIO: Creditors' Proofs of Debt Due Oct. 16
------------------------------------------------
Luis Alberto Cortes, the court-appointed trustee for Novo Frio
SA's bankruptcy proceedings, will be verifying creditors' proofs
of claim until Oct. 16, 2012.

Mr. Cortes will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 16 in Buenos Aires, with the assistance of Clerk
No. 32, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.

The Trustee can be reached at:

         Luis Alberto Cortes
         Av. Cordoba 1646
         Argentina


SAN MIGUEL: Creditors' Proofs of Debt Due Nov. 8
------------------------------------------------
Marta Estela Acuna, the court-appointed trustee for San Miguel
Salud SA's bankruptcy proceedings, will be verifying creditors'
proofs of claim until Nov. 8, 2012.

Ms. Acuna will present the validated claims in court as individual
reports.  The National Commercial Court of First Instance No. 5 in
Buenos Aires, with the assistance of Clerk No. 9, will determine
if the verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will be
raised by the company and its creditors.

The Trustee can be reached at:

         Marta Estela Acuna
         Combate de los Pozos 129
         Argentina


VIAJES PRATS: Creditors' Proofs of Debt Due Oct. 3
--------------------------------------------------
Alberto Javier Sansolo, the court-appointed trustee for Viajes
Prats SA's bankruptcy proceedings, will be verifying creditors'
proofs of claim until Oct. 3, 2012.

Mr. Sansolo will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 19 in Buenos Aires, with the assistance of Clerk
No. 38, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.

The Trustee can be reached at:

         Alberto Javier Sansolo
         Viamonte 1636
         Argentina


* ARGENTINA: Moody's Takes Negative Rating Actions on Insurers
--------------------------------------------------------------
Moody's Latin America took negative rating actions on the outlooks
of the global local currency (GLC) and national scale (NS)
insurance financial strength (IFS) ratings for most of the 27
rated Argentine insurance companies and reciprocal guarantors. See
complete list of companies and ratings below.

These rating actions follow the outlook change to negative, from
stable, of the Argentine local-currency and foreign-currency B3
sovereign bond ratings on September 17, 2012 (see press release
titled "Moody's changes outlook on Argentina's B3 rating to
negative from stable"), as well as the outlook change to negative,
from stable, of the local-currency deposit ratings of 24 Argentine
financial institutions (mostly banks) on September 26, 2012 (see
press release titled "Moody's changes to negative the rating
outlook on rated Argentine financial institutions").

Ratings Rationale

The rating actions on the insurers and reciprocal guarantors
reflect Moody's assessment of the correlation between their credit
profiles and that of the Argentine sovereign, taking into account
the following: 1) the degree to which their businesses depend on
the domestic macroeconomic and financial environment; 2) their
direct and indirect exposures to the sovereign; and (3) their lack
of cross border diversification. Because of the sovereign
linkages, the change in outlook of the government bond rating led
to the change in outlook of the insurers' and reciprocal
guarantors' ratings. A contributing factor to their negative
outlook was also the change in the banks' outlook to negative,
given the insurer's significant asset concentrations in both
sovereign and bank-related assets.

The negative outlook on the GLC or NS IFS ratings indicates that
these ratings could be downgraded in the event of a downgrade of
the Argentine sovereign and bank ratings, whereas their outlook
could revert back to stable if the Argentine sovereign and bank
rating outlooks return to stable. Although some of these entities'
ratings receive uplift because of ownership and support, the
sovereign linkages impact both their stand-alone credit profiles
and their published ratings.

The outlooks of the following 18 insurers' GLC and NS IFS ratings
were changed to negative from stable:

- ACE Seguros S.A.: B1/Aa3.ar

- Allianz Argentina Cia. de Seguros S.A.: Ba3/Aa2.ar

- BBVA Consolidar Seguros S.A.: Ba3/Aa2.ar

- Caja de Seguros S.A.: B1/Aa3.ar

- Caruso Cia. Argentina de Seguros S.A.: B2/Aa3.ar

- Chubb Argentina de Seguros S.A.: Ba3/Aa1.ar

- Generali Argentina Compania de Seguros S.A.: B1/Aa3.ar

- La Segunda ART S.A.: B2/A1.ar

- La Segunda Compania de Seguros de Personas S.A.: B2/A1.ar

- La Segunda Coop. Ltda. de Seguros Generales: B2/A1.ar

- Mapfre Argentina ART S.A.: Ba3/Aa2.ar

- Mapfre Argentina de Seguros de Vida S.A.: Ba3/Aa2.ar

- Mapfre Argentina Seguros S.A.: Ba3/Aa2.ar

- Nacion Seguros de Retiro S.A.: B2/Aa3.ar

- Nacion Seguros S.A.: B2/Aa3.ar

- Provincia Seguros S.A.: B3/A2.ar

- Royal & Sun Alliance Seguros (Argentina) S.A.: B1/Aa3.ar

- San Cristobal Sociedad Mutual de Seguros Generales: B2/A1.ar.

The outlooks of the following 5 reciprocal guarantors' (S.G.R.s)
GLC and NS IFS ratings were changed to negative from stable:

- Aval Rural S.G.R.: B2/A1.ar

- Fondo de Garantias Buenos Aires (FOGABA): B3/A3.ar

- Garantia de Valores S.G.R.: B2/A1.ar

- Garantizar S.G.R.: B2/Aa3.ar

- Vinculos S.G.R.: B3/A3.ar

The outlooks of the following 2 insurers' GLC and NS IFS ratings
were maintained at negative, indicating that there were already
negative factors affecting their credit profile even before the
sovereign outlook was changed to negative:

- HSBC -- La Buenos Aires Seguros S.A. (currently owned by QBE):
   Ba3/Aa2.ar

- HSBC -- Seguros de Vida: Ba3/Aa2.ar.

Puente Hnos. S.G.R.

The outlook of Puente Hnos. S.G.R.' B3 GLC IFS rating was changed
to negative from stable, and the outlook of its A3.ar NS IFS
rating was changed to negative from positive. The rationale for
the negative outlook on the GLC and NS IFS ratings is consistent
with the rationale above. Regarding the NS IFS rating, the
positive trend observed in Puente's credit profile relative to
some of its B3 peers is more than offset by the company's very
high direct investment exposure to local assets, as well its
particular sensitivity (similar to other S.G.R.s) to the economic
cycle and other macroeconomic/financial trends in the country.

Fianzas y Credito S.A.

The outlook of Fianzas y Credito's B3 GLC IFS rating remained
stable whereas the outlook of its A3.ar NS IFS rating was changed
to stable from positive. The maintenance of the insurer's stable
GLC IFS rating outlook indicates that the B3 rating is resilient
to a 1-notch downgrade of the Argentine sovereign because its
profitability should remain supported by underwriting results, and
its exposure to sovereign and bank investments remains low
relative to shareholders equity. However, the change in the NS IFS
rating outlook to stable from positive indicates that the
pressures from a possible sovereign downgrade offset the positive
momentum exhibited by the company relative to some B3 peers that
could have possibly led to a higher NS rating.



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


ASSET FINANCE: Creditors' Proofs of Debt Due Oct. 22
----------------------------------------------------
The creditors of Asset Finance Corporation Limited are required to
file their proofs of debt by Oct. 22, 2012, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Aug. 30, 2012.

The company's liquidator is:

         David Dyer
         Deutsche Bank (Cayman) Limited
         PO Box 1984, Boundary Hall
         Cricket Square, Elgin Avenue
         Grand Cayman KY1-1104
         Cayman Islands


HIGHGATE GLOBAL DYNAMIC: Creditors' Proofs of Debt Due Oct. 22
--------------------------------------------------------------
The creditors of Highgate Global Dynamic Fund (USD) are required
to file their proofs of debt by Oct. 22, 2012, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on Aug. 30, 2012.

The company's liquidators are:

         Edel Andersen
         Roger Priaulx
         Telephone: (345) 815 8532
         Facsimile: (345) 945 3470
         c/o Genesis Trust & Corporate Services Ltd.
         P.O. Box 448 Midtown Plaza
         Elgin Avenue, George Town
         Grand Cayman KY1-1106
         Cayman Islands


HIGHGATE GLOBAL QUANT: Creditors' Proofs of Debt Due Oct. 22
------------------------------------------------------------
The creditors of Highgate Global Quant Fund are required to file
their proofs of debt by Oct. 22, 2012, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Aug. 30, 2012.

The company's liquidators are:

         Roger Priaulx
         J. Paul Drake
         Telephone: (345) 815 8532
         Facsimile: (345) 945 3470
         c/o Genesis Trust & Corporate Services Ltd.
         P.O. Box 448 Midtown Plaza
         Elgin Avenue, George Town
         Grand Cayman KY1-1106
         Cayman Islands


LAICA INVESTMENTS: Creditors' Proofs of Debt Due Oct. 3
-------------------------------------------------------
The creditors of Laica Investments Limited are required to file
their proofs of debt by Oct. 3, 2012, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on Aug. 31, 2012.

The company's liquidator is:

         Eagle Holdings Ltd.
         c/o Barclays Private Bank & Trust (Cayman) Limited
         FirstCaribbean House, 4th Floor
         P.O. Box 487 Grand Cayman KY1-1106
         Cayman Islands
         Telephone: 345 949-7128


NORTHWOOD CAPITAL: Creditors' Proofs of Debt Due Oct. 8
-------------------------------------------------------
The creditors of Northwood Capital European Fund Limited are
required to file their proofs of debt by Oct. 8, 2012, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on Aug. 31, 2012.

The company's liquidator is:

         Hugh Dickson
         c/o John Royle
         10 Market Street #765, Camana Bay
         Grand CaymanKY1 9006
         Cayman Islands
         Telephone: (345) 769 7206
         Main Telephone: (345) 949 7100
         Facsimile: (345) 949 7120


SUBCO V CAYMAN: Commences Liquidation Proceedings
-------------------------------------------------
On Aug. 22, 2012, the members of Subco V Cayman Argentina passed a
resolution that liquidates the company's business.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

         Roberto Alarcon
         c/o Maples and Calder, Attorneys-at-law
         PO Box 309, Ugland House
         Grand Cayman KY1-1104
         Cayman Islands


TIME TRANSPORTATION: Creditors' Proofs of Debt Due Oct. 10
----------------------------------------------------------
The creditors of Time Transportation Limited are required to file
their proofs of debt by Oct. 10, 2012, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Aug. 30, 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


TOKYOR ASSET: Creditors' Proofs of Debt Due Oct. 3
--------------------------------------------------
The creditors of Tokyor Asset Management Ltd. are required to file
their proofs of debt by Oct. 3, 2012, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on Aug. 28, 2012.

The company's liquidator is:

         Ogier
         c/o Jacqueline Haynes
         Telephone: (345) 815-1759
         Facsimile: (345) 949-9877
         89 Nexus Way, Camana Bay
         Grand Cayman KY1-9007
         Cayman Islands


TWIN ELITE: Placed Under Voluntary Wind-Up
------------------------------------------
On Aug. 23, 2012, the shareholders of Twin Elite Access Fund, Ltd.
resolved to voluntarily wind up the company's operations.

Only creditors who were able to file their proofs of debt by
Sept. 29, 2012, will be included in the company's dividend
distribution.

The company's liquidator is:

         Vincent King
         Benjamin Miller
         c/o Swiss Financial Services (Bahamas) Ltd.
         PO Box EE-17758
         One Montague Place, 4th Floor
         East Bay Street
         Nassau Bahamas



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


* COLOMBIA: Moody's Says Outlook for Banking System Stable
----------------------------------------------------------
The outlook for the Colombian banking system remains stable,
reflecting expectations that favorable domestic operating
conditions will sustain banks' loan and business expansion over
the next 12--18 months, Moody's Investors Service says in its new
Banking System Outlook: Colombia.

"We expect that solid economic growth, stable inflation, declining
unemployment and real wage gains will continue to support
Colombian banks despite signs of deceleration amid the slowing
global economy," says analyst and author of the report Felipe
Carvallo. Colombian GDP is expected to grow by 4.5% in 2012 and
4.9% next year, which while lower than in 2011, Carvallo says, are
still well above global levels.

In addition, Colombian banks' good asset quality, ample reserves
and robust profitability will continue to offset their weak
tangible common equity capitalization and help protect against
losses. "Although asset quality is showing some signs of
deterioration and delinquencies are likely to rise as consumer
loan books start to season after a period of strong growth,"
Carvallo says, "they should remain manageable as banks tighten
their origination standards and focus on corporate lending."

High corporate loan concentrations and substantial crossholdings
of credit risk do however expose Colombian banks to rapid asset
quality deterioration if one or more large corporates were to
default. Additionally, the banks' appetite for acquisitions and
international expansion could challenge their ability to maintain
effective controls and risk management across increasingly complex
franchises.

Ample net interest margins and efficient operations will help
sustain Colombian bank profitability in the coming year, though
provisioning costs are expected to increase due to the seasoning
of consumer loan books. Ongoing, but moderating loan growth will
support earnings, while borrower concentrations and crossholdings
via syndications of large corporate loans raise the risk of
earnings volatility.



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E C U A D O R
=============


* ECUADOR: To Get $40 Million IDB Loan for Children Care
--------------------------------------------------------
Ecuador will help foster the comprehensive development of children
under age five living in vulnerable areas through the improvement
of improving maternal and child health, nutrition, and early
education activities with the help of a loan for $40 million from
the Inter-American Development Bank (IDB).

The program, which will support the implementation of the
country's Comprehensive Child Development Strategy, is expected to
benefit 25,000 children under age five and improve health for more
than 100,000 adults.

The Ministry of Coordination for Social Development identified 35
parishes in the coast, highlands, and Amazonian regions with the
highest incidence of chronic malnutrition and extreme poverty and
large numbers of indigenous people and Afro-Ecuadorians.

The project aims to improve cognitive, socio-emotional, and
physical development of Ecuadorian children through sustainable
and culturally relevant activities. Its goal is to increase early
learning opportunities to children under 36 months from the
present 37 percent to 100 percent within five years.  It will also
expand preschool education coverage for children aged three and
four years from 6 percent to 36 percent.

"Through this project, Ecuador aims to provide tools needed for
children under five to overcome their disadvantages in cognitive,
social-emotional, and physical development," said Lesley O'Connell
IDB project team leader.

The program will strengthen primary health and nutrition services
for mothers and for children under five by supporting the
implementation of the new comprehensive health care model.  The
local contribution will consist of payment of the Zero
Malnutrition Economic Incentive and the provision of micronutrient
powder and tablets for pregnant and nursing mothers.

The program will also finance the development of a new care and
management model for early childhood development services, improve
child centers, and support household visits.

The IDB financing consists of a loan from the ordinary capital for
US$40 million for a 25-year term, a grace period of 14.5 years,
and an interest rate based on LIBOR.  The local counterpart
financing will total US$8 million.



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G U A T E M A L A
=================


BANCO DE DESARROLLO: Fitch Raises Issuer Default Rating to 'BB+'
----------------------------------------------------------------
Fitch Ratings has upgraded Banco de Desarrollo Rural's (Banrural)
long-term Issuer Default Rating (IDR) to 'BB+' from 'BB'.  The
Rating Outlook is Stable.

Fitch upgraded Banrural's IDRs and Viability Rating (VR) due to
the bank's consistent and above average performance even during
times of economic slowdown in its home market.  Banrural's Stable
Outlook reflects that Fitch does not anticipate substantial
changes in the bank's risk profile in the foreseeable future.
Banrural's upside potential is deemed limited unless it achieves
structural changes to gradually diversify its revenues and improve
efficiency.  On the other hand, a significant reduction of its
Fitch Core Capital Ratio (below 11%) and or a period of sustained
low earnings (Operating ROAA below 1%) would trigger a negative
rating action.

Banrural's IDR and VR reflect its sound local franchise, high
profitability, strong capital metrics, and ample depository base.
Banrural's ratings also consider its limited revenue
diversification and sensitivity to economic downturns, given its
main target markets (consumption, micro and small enterprises).

The bank has exhibited a consistently high financial profitability
over the last six years, which compares positively to its main
local and international peers, despite its weak efficiency derived
from its business model.  The bank's financial profitability is
boosted by an ample net interest margin, which balances the
relatively low contribution from non-interest income, and the
increasing operating expenses, given the growth in branches and
points of services.  Fitch foresees that Banrural will maintain a
strong profitability in the medium term that is above the average
of its main national and international peers.

Banrural has shown a positive trend in its capital ratios over the
last five years, stabilizing in the last two fiscal years.  Fitch
Core Capital to risk weighted assets stood at a high 15.1% at June
2012, well-above the average of the Guatemalan banking system.
The bank's capitalization may stabilize in around 16% for the
short term, which Fitch considers reasonable in light of the risks
to which the entity is exposed. Banrural's funding benefits from
an ample depository base, which is growing consistently at double
digit levels.  The high weight of low cost saving and current
account deposits (68.1% on total deposits) favors the bank's
funding costs.

The bank's credit quality is good.  Banrural's delinquency metrics
have been below 1% over the last seven years, at the same time
that the reserve coverage for non-performing and gross loans have
tended to be above 200% and 2%, respectively, over the same
period.  On the overall, loan portfolio concentration in the
largest economic debtors is low and in a decreasing trend, as is
the entity's foreign currency exposure and the non-domiciliated
loans.  Although restructured loans remain relatively high (June
2012: 6.4% of gross loans), they are in a declining trend since
its peak in FY2010 (8%) and respond to the bank's business model.
The bank's high financial profitability provides a good cushion
for provision expenses, in case as may be necessary.

Established in Guatemala in 1998, Banrural focus its services in
promoting economic and social development in rural areas of the
country.  The bank is mainly oriented to finance consumption, as
well as micro, small and medium companies, with a smaller share in
corporate loans.  Currently, Banrural is the third largest
Guatemalan bank in terms of assets and the second in deposits,
with a market share of 19.7% and 21.1%, respectively.

Fitch has taken the following rating actions on Banrural:

  -- Long-term foreign currency IDR upgraded to 'BB+' from 'BB';
     Outlook Stable;
  -- Short-term foreign currency IDR affirmed at 'B';
  -- Long-term local currency IDR upgraded to 'BB+' from 'BB';
     Outlook Stable;
  -- Short-term local currency IDR affirmed at 'B';
  -- Viability rating upgraded to 'bb+' from 'bb';
  -- Support affirmed at '3';
  -- Support Rating Floor affirmed at 'BB-';
  -- National long -term rating upgraded to 'AA+(gtm)' from
     'AA(gtm)'; Outlook Stable;
  -- National scale short-term rating affirmed at 'F1+(gtm)'.


GUATEMALAN BANCO: Fitch Affirms 'BB' Issuer Default Rating
----------------------------------------------------------
Fitch Ratings has affirmed the Guatemalan Banco Industrial's (BI)
long-term Issuer Default Rating (IDR) at 'BB'.  The agency also
revised the bank's Rating Outlook to Positive from Stable.

The Positive Outlook reflects Fitch opinion that BI's
capitalization metrics would reflect gradual enhancements in the
next two years, achieving a Fitch Core Capital figure of around
12% of risk weighted assets.  This follows BI's Board of
Directors' recent agreement to make a capital injection of US$30
million in fresh capital in January 2013 and to reduce the pay-out
dividend ratio to around 40% of the 2012 financial results. BI's
IDR could be upgraded if the bank sustains the 12% capitalization
level over the next two years; otherwise, the Outlook would return
to Stable.

BI's IDRs are driven by its strong national franchise, sound asset
quality, good efficiency, ample deposit base, and sound liquidity
which, in turn, are reflected in the bank's Viability rating.
BI's ratings are constrained by its modest capitalization,
moderate profitability, and the relatively high loan portfolio
concentrations.

BI's modest capital position remains pressured given the bank's
anticipated asset growth (double-digits for 2012-2013) and BI's
holding (Bicapital) dependence upon dividends from its operating
subsidiaries to service its debt.  Currently, BI's Fitch Core
Capital as a proportion of risk weighted assets is modest and
relatively similar to its historical average (June 2012: 10.1%;
2008-2011: 10.6%).  However, with the recent capitalization
actions the Board has agreed to, the bank expects to reach a Fitch
Core Capital of more than 12% for end 2013, which is considered
feasible by Fitch as long as the bank keep its asset growth trend
under control.  Bicapital's debt arose from the past acquisition
of the Honduran Banco del Pais (Banpais), which is reflected in
Bicapital's double leverage of 116%, as of march 2012, although
this is lower than when Banpais was acquired (150%).

BI boasts a sizable base of recurring, stable, diversified, and
low-cost customer funding, benefiting from the bank's strong
franchise and adequate distribution network.  The bank has also
made efforts to lengthen the duration of its liabilities through
subordinated borrowings and securitization during 2011.

BI's credit quality remains sound and compares positively with its
main peers.  The bank's impaired loans, net charge-offs, and
restructured ratios are low and similar to historical averages.
BI's financial performance is favoured by its good efficiency
levels, which compare positively with the Guatemalan banking
system and regional peers.  However, its low net interest margin
(NIM) and low portion of non-financial income limit its financial
results.

Established in 1968, BI is Guatemala's largest bank, with a market
share of 27.6% and 25.4% of the total assets and deposits as of
June 2012.  BI's primary focus is on commercial and corporate
banking.  BI's main shareholder is Bicapital Corp., a holding
company domiciled in Panama, with assets of US$8,985.4 million as
of June 2012. Bicapital has also owned the Honduras-based Banco
del Pais since 2007.

Fitch affirms ratings and revised Outlooks on Industrial as
follows:

  -- Long-term IDR at 'BB'; Outlook to Positive from Stable;
  -- Short-term IDR at 'B';
  -- Local-currency long-term IDR at 'BB'; Outlook to Positive
     from Stable;
  -- Local-currency short-term IDR at 'B';
  -- Viability Rating at 'bb';
  -- Support at '3';
  -- Support Rating Floor at 'BB-';
  -- Subordinated Tier I Capital Notes debt at 'B-';
  -- National scale long-term rating at 'AA-(gtm)'; Outlook to
     Positive from Stable;
  -- National scale short-term rating at 'F1+(gtm)'.

Fitch affirms ratings on Industrial Subordinated Trust as follows:

  -- Industrial Subordinated Trust Tier II debt at 'BB-'.


                            ***********


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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