TCRLA_Public/121121.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, November 21, 2012, Vol. 13, No. 232


                            Headlines



A R G E N T I N A

* ARGENTINA: Not In Talks With Gramercy on Interest Payments
* ARGENTINA: Moody's Says Ruling Raises Debt Payment Concerns


B E R M U D A

EWAVE CONSTRUCTION: Placed Under Voluntary Wind-Up
GLOBAL NAVIGATION: Placed Under Voluntary Wind-Up
HUNTINGTON INTERNATIONAL: Creditors' Proofs of Debt Due Nov. 21
LAZARD WORLD: Placed Under Voluntary Wind-Up
OVERSEAS PARTNERS: Placed Under Voluntary Wind-Up

PANVISION LTD: Placed Under Voluntary Wind-Up
SAAD INVESTMENTS: Court Enters Wind-Up Order
SUSSEX INVESTMENTS: Placed Under Voluntary Wind-Up
VANCO ENGINEERING: Placed Under Voluntary Wind-Up


B R A Z I L

NATIONAL COMMERCIAL: S&P Affirms 'B-/B' Issuer Credit Ratings
PDG REALTY: Moody's Cuts 'Ba2' Corporate Family Rating


C A Y M A N  I S L A N D S

CHORDANT LIFESCIENCES: Placed Under Voluntary Wind-Up
EMG ASIA: Creditors' Proofs of Debt Due Nov. 22
ENVIRONMENTAL HOLDINGS: Creditors' Proofs of Debt Due Nov. 22
GREENWICH HARBOUR: Commences Liquidation Proceedings
HSINCHU INTERNATIONAL: Creditors' Proofs of Debt Due Nov. 22

I-FUTURE LIMITED: Creditors' Proofs of Debt Due Nov. 21
ML HCA: Creditors' Proofs of Debt Due Nov. 22
ML VEDA: Creditors' Proofs of Debt Due Nov. 22
SOVEREIGN 8: Creditors' Proofs of Debt Due Nov. 26
SOVEREIGN 18: Creditors' Proofs of Debt Due Nov. 26


J A M A I C A

* JAMAICA: Mining Sector Contracts Again, Data Reveals
* JAMAICA: Remittance Inflow Dips 10% in September


M E X I C O

MBIA MEXICO: Moody's Downgrades IFS Rating to 'Caa2'
TUSCANY INT'L: Fitch Rates New $200MM Senior Unsecured Notes 'B+'
TUSCANY INT'L: S&P Rates $200MM Senior Unsecured Notes 'B'




                            - - - - -


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


* ARGENTINA: Not In Talks With Gramercy on Interest Payments
------------------------------------------------------------
Pablo Gonzalez at Bloomberg News reports that Gramercy Advisors
LLC is not in talks with the Argentine government to collect
interest payments on restructured debt outside the U.S. and avoid
seizures from holders of defaulted bonds, the hedge fund said.

Argentine newspapers La Nacion and Ambito Financiero each
reported, without saying where they got the information, that
Argentina may make payments overseas after a U.S. appeals court
ruled Oct. 26 that the country can't discriminate against holders
of defaulted bonds in favor of those who own securities it
restructured following a record sovereign default in 2001,
according to Bloomberg News.

"Gramercy categorically and forcefully denies having had any
discussions with the Republic of Argentina regarding alternative
payment methods," the press office of the Connecticut-based hedge
fund wrote in an e-mailed response to questions, the report notes.
"We can confirm that we have hired David Boies as our legal
counsel to represent us and other bondholders in this case," the
report relates.

U.S. District Judge Thomas Griesa, who will decide how much
Argentina should pay the so-called holdouts when it makes
distributions due on the nation's securities next month, will
receive filings from Argentina and the group of bondholders, the
report adds.


* ARGENTINA: Moody's Says Ruling Raises Debt Payment Concerns
-------------------------------------------------------------
A recent Second Circuit Court of Appeals ruling upholding a
decision requiring Argentina to pay bondholders who did not accept
previous debt swaps has the potential to create losses for holders
of the restructured debt, says Moody's Investors Service. However,
the ruling did not settle any of the questions that will
ultimately determine the impact on ratings, if any.

The impact of the decision will hinge on the specifics of the
final ruling, its enforceability, and the response of Argentina,
says Moody's in the report "Legal Ruling Raises Questions About
Argentina's Debt Payments."

The Second Circuit has sent the case back to the district court to
clarify the formula to be used to pay both the bondholders who did
not accept the debt swaps and holders of the restructured debt and
whether and how the ruling impacts third parties involved in
Argentina's payments process.

From a ratings perspective the key question is whether the ruling
will lead to losses for restructured debt bondholders.

Moody's base scenario is that Argentina will seek to continue
servicing restructured debt without changes to currency, maturity,
or interest rate, and hence posing no losses to investors, but the
approach may clash with the government's stated objective of
denying payments to holdouts.

On October 26th the US Second Circuit Court of Appeals upheld a
lower court ruling requiring the government of Argentina (B3
negative) to pay litigating bondholders concurrently with any
payments to holders of its restructured debt. The litigating
bondholders, or holdouts, are investors that did not participate
in Argentina's 2005 or 2010 debt swaps. The holdout creditors own
an estimated US$1.3 billion of defaulted claims (about 8% of total
claims).

The appeals court wrote that bond documents' pari passu language
"prohibits Argentina, as bond issuer, from formally subordinating
the bonds by issuing superior debt." The court further ruled that
as bond payer Argentina could not pay other bonds without paying
litigating bondholders.



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


EWAVE CONSTRUCTION: Placed Under Voluntary Wind-Up
--------------------------------------------------
On Oct. 26, 2012, the members of Ewave Construction Company
Limited resolved to voluntarily wind up the company's operations.

Only creditors who were able to file their proofs of debt by
Nov. 14, 2012, will be included in the company's dividend
distribution.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House, 2 Church Street
         Hamilton HM11
         Bermuda


GLOBAL NAVIGATION: Placed Under Voluntary Wind-Up
-------------------------------------------------
On Oct. 26, 2012, the member of Global Navigation Ltd. resolved to
voluntarily wind up the company's operations.

Only creditors who were able to file their proofs of debt by
Nov. 14, 2012, will be included in the company's dividend
distribution.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House, 2 Church Street
         Hamilton HM11
         Bermuda


HUNTINGTON INTERNATIONAL: Creditors' Proofs of Debt Due Nov. 21
---------------------------------------------------------------
The creditors of Huntington International Insurance Company Ltd.
are required to file their proofs of debt by Nov. 21, 2012, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on Oct. 26, 2012.

The company's liquidators are:

         Mike Morrison
         Charles Thresh
         KPMG Advisory Limited
         Crown House, 4 Par-La-Ville Road
         Hamilton
         Bermuda


LAZARD WORLD: Placed Under Voluntary Wind-Up
--------------------------------------------
On Oct. 26, 2012, the members of Lazard World Alternative Value
Fund, Ltd. resolved to voluntarily wind up the company's
operations.

Only creditors who were able to file their proofs of debt by
Nov. 14, 2012, will be included in the company's dividend
distribution.

The company's liquidator is:

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


OVERSEAS PARTNERS: Placed Under Voluntary Wind-Up
--------------------------------------------------
On Oct. 29, 2012, the members of Overseas Partners Cat Ltd.
resolved to voluntarily wind up the company's operations.

Only creditors who were able to file their proofs of debt by
Nov. 14, 2012, will be included in the company's dividend
distribution.

The company's liquidator is:

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


PANVISION LTD: Placed Under Voluntary Wind-Up
---------------------------------------------
On Oct. 26, 2012, the member of Panvision Ltd. resolved to
voluntarily wind up the company's operations.

Only creditors who were able to file their proofs of debt by
Nov. 14, 2012, will be included in the company's dividend
distribution.

The company's liquidator is:

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


SAAD INVESTMENTS: Court Enters Wind-Up Order
--------------------------------------------
On Sept. 14, 2012, the Supreme Court of Bermuda entered an order
to wind up the operations of Saad Investments Company Limited.

The company's liquidators are:

         Stephen Akers
         Mark Byers
         Hugh Dickson
         Grant Thornton Specialist Services (Cayman) Ltd.
         48 Market Street, 2nd Floor
         Suite 4290 Canella Court, Camana Bay
         Grand Cayman
         Cayman Islands


SUSSEX INVESTMENTS: Placed Under Voluntary Wind-Up
--------------------------------------------------
On Oct. 16, 2012, the members of Sussex Investments Limited
resolved to voluntarily wind up the company's operations.

Only creditors who were able to file their proofs of debt by
Nov. 14, 2012, will be included in the company's dividend
distribution.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House, 2 Church Street
         Hamilton HM11
         Bermuda


VANCO ENGINEERING: Placed Under Voluntary Wind-Up
-------------------------------------------------
On Oct. 26, 2012, the members of Vanco Engineering Limited
resolved to voluntarily wind up the company's operations.

Only creditors who were able to file their proofs of debt by
Nov. 14, 2012, will be included in the company's dividend
distribution.

The company's liquidator is:

         Robin J. Mayor
         Clarendon House, 2 Church Street
         Hamilton HM11
         Bermuda



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


NATIONAL COMMERCIAL: S&P Affirms 'B-/B' Issuer Credit Ratings
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its long-term 'B-' and
short-term 'B' ratings on National Commercial Bank Jamaica Ltd.
(NCBJ). The outlook is still negative.

Standard & Poor's bases its ratings on NCBJ on its "strong"
business position, "moderate" capital and earnings, "moderate"
risk position, "adequate" liquidity, and "average" funding (as
S&P's criteria define it).


PDG REALTY: Moody's Cuts 'Ba2' Corporate Family Rating
------------------------------------------------------
Moody's America Latina has placed PDG Realty S.A. Empreendimentos
e Participacoes (PDG) Ba2 global scale ratings and Aa3.br national
scale ratings under review for downgrade. The ratings review was
triggered by a significant deterioration in the company's credit
metrics due to weaker than expected profitability and Moody's
expectation that an improvement in leverage will only be gradual.

Ratings placed under review for downgrade:

- Corporate Family Rating: Ba2 (global scale) and Aa3.br
   (national scale)

- BRL250 million 5-year senior secured CCB (Cedula de Credito
   Bancario): Ba2 (global scale); Aa3.br (national scale)

- BRL140 million 7-year senior unsecured debentures: Ba3 (global
   scale); A2.br (national scale)

Rating Rationale

PDG experienced an accelerated growth pace during the last five
years with an annual average revenue growth rate of 64% from 2007
to the 3Q12 (LTM), primarily through acquisitions. The aggressive
growth strategy led to cost overruns and delayed launches
impacting gross margins and profitability, especially during the
first half of this year. At the same time, large working capital
needs pressured the company's capital structure leading to
significant increase in leverage. "Given the increased execution
risks and lower operating profitability, the BRL796 million equity
capitalization concluded during the third quarter could be
insufficient to promote a significant reduction in gross leverage
and, at the same time, maintain a strong liquidity position as
required for the Ba2 rating category" said Cristiane Spercel, a
Moody's Assistant Vice President.

The ratings review process will focus on prospects for PDG to
successfully implement its new strategic positioning to improve
its current margins, deleverage within a reasonable timeframe and
support its market position in an evolving competitive
environment. The review will also consider PDG's expected capital
structure with the completion of the management initiatives to
promote leverage reduction. Moody's will review the company's
evolving debt structure to assess a potential impact on the
subordination level of unsecured creditors.

The principal methodology used in rating PDG was the Global
Homebuilding Industry Methodology published in March 2009.

Headquartered in Rio de Janeiro, PDG Realty S.A. Empreendimentos e
Participacoes (PDG) is one of largest homebuilders in Brazil
operating through its wholly owned subsidiaries, Goldfarb, CHL,
Agre and minority investments in other companies. The company's
portfolio of products is diverse including projects in 14
Brazilian states, in addition the Federal District and Argentina.
During the last twelve month ended September 2012, PDG generated
net revenues of BRL5.8 billion (USD3.1 billion).



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


CHORDANT LIFESCIENCES: Placed Under Voluntary Wind-Up
-----------------------------------------------------
On Oct. 3, 2012, the sole shareholder of Chordant Lifesciences
Fund resolved to voluntarily wind up the company's operations.

Only creditors who were able to file their proofs of debt by
Nov. 19, 2012, will be included in the company's dividend
distribution.

The company's liquidator is:

         Brian Dechristopher
         Chordant Capital Partners, LLC
         Ten Post Office Square, 8th Floor
         Boston, MA  02109, USA
         Telephone: (617)692-2900/ (617)692-2901


EMG ASIA: Creditors' Proofs of Debt Due Nov. 22
-----------------------------------------------
The creditors of EMG Asia GP, Ltd. are required to file their
proofs of debt by Nov. 22, 2012, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on Oct. 5, 2012.

The company's liquidator is:

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


ENVIRONMENTAL HOLDINGS: Creditors' Proofs of Debt Due Nov. 22
-------------------------------------------------------------
The creditors of Environmental Holdings are required to file their
proofs of debt by Nov. 22, 2012, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on Oct. 3, 2012.

The company's liquidator is:

         Intertrust SPV (Cayman) Limited
         87 Mary Street, George Town
         Grand Cayman KY1-9005
         Cayman Islands
         c/o Jennifer Chailler
         Telephone: (345) 814 6847


GREENWICH HARBOUR: Commences Liquidation Proceedings
----------------------------------------------------
On Oct. 8, 2012, the members of Greenwich Harbour MAC 52 Ltd.
resolved to voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
Nov. 12, 2012, will be included in the company's dividend
distribution.

The company's liquidator is:

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


HSINCHU INTERNATIONAL: Creditors' Proofs of Debt Due Nov. 22
------------------------------------------------------------
The creditors of Hsinchu International Mortgage Loan 2 Limited are
required to file their proofs of debt by Nov. 22, 2012, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on Oct. 3, 2012.

The company's liquidator is:

         Intertrust SPV (Cayman) Limited
         87 Mary Street, George Town
         Grand Cayman KY1-9005
         Cayman Islands
         c/o Jennifer Chailler
         Telephone: (345) 814 6847


I-FUTURE LIMITED: Creditors' Proofs of Debt Due Nov. 21
-------------------------------------------------------
The creditors of I-Future Limited are required to file their
proofs of debt by Nov. 21, 2012, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on Oct. 5, 2012.

The company's liquidator is:

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


ML HCA: Creditors' Proofs of Debt Due Nov. 22
---------------------------------------------
The creditors of ML HCA Co-Invest Ltd. are required to file their
proofs of debt by Nov. 22, 2012, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on Oct. 3, 2012.

The company's liquidator is:

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


ML VEDA: Creditors' Proofs of Debt Due Nov. 22
----------------------------------------------
The creditors of ML Veda Co-Invest Ltd. are required to file their
proofs of debt by Nov. 22, 2012, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on Oct. 3, 2012.

The company's liquidator is:

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


SOVEREIGN 8: Creditors' Proofs of Debt Due Nov. 26
--------------------------------------------------
The creditors of Sovereign 8 Ltd. are required to file their
proofs of debt by Nov. 26, 2012, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on Oct. 3, 2012.

The company's liquidator is:

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


SOVEREIGN 18: Creditors' Proofs of Debt Due Nov. 26
---------------------------------------------------
The creditors of Sovereign 18 Ltd. are required to file their
proofs of debt by Nov. 26, 2012, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on Oct. 3, 2012.

The company's liquidator is:

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



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


* JAMAICA: Mining Sector Contracts Again, Data Reveals
------------------------------------------------------
RJR News reports that data from the Bank of Jamaica, show there
has been a further contraction in the country's mining sector.

The Central Bank's quarterly monetary policy report revealed that
for July to September, mining and quarrying declined at a faster
pace than the quarterly contraction of 7.6% for the first half of
2012, according to RJR News.

The report relates that this was due to reduced activity in the
bauxite and alumina industries.

The BoJ says, total bauxite and alumina production declined by
7.5% and 11.4%, during the July to September quarter, the report
notes.


* JAMAICA: Remittance Inflow Dips 10% in September
--------------------------------------------------
RJR News reports that the Bank of Jamaica has reported that
remittance inflows dipped by 10% in September.

The drop means that for the first nine months of 2012, remittance
inflows were only JM$1.519 billion, according to RJR News.

The report relates that at that level, the inflows are below where
they were at the start of the global financial crisis in 2008.

More importantly, it means lower inflows into the country's
falling Net International Reserves, the report notes.



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


MBIA MEXICO: Moody's Downgrades IFS Rating to 'Caa2'
----------------------------------------------------
Moody's Investors Service has downgraded to Caa2, from B3, the
insurance financial strength rating of MBIA Insurance Corporation
(MBIA Corp.) and to Caa1, from B2, the senior debt rating of MBIA
Corp.'s parent company, MBIA Inc. The MBIA Corp. rating action
concludes a review initiated in December 2011. The ratings
outlooks for both companies are developing.

The rating actions have implications for various transactions
wrapped by MBIA Insurance Corporation as discussed later in this
press release.

RATING RATIONALE -- MBIA INSURANCE CORPORATION

Moody's stated that the downgrade of MBIA Corp. to Caa2, from B3,
reflected a number of factors:

1) The insurer's weak liquidity position. At September 30, 2012,
MBIA Corp. had approximately $386 million of liquid assets -- a
modest amount relative to the insurer's contingent liabilities;

2) Ongoing deterioration of MBIA's commercial real estate
portfolio that could lead to meaningful claims in the near future
and threaten MBIA's already strained liquidity;

3) The likelihood that any potential global settlement with Bank
of America over outstanding claims would be consummated at terms
characteristic of a distressed exchange;

4) The likelihood of a claims payment deferral or other regulatory
intervention at MBIA Corp. absent a settlement with Bank of
America should significant claims materialize.

Last week, Bank of America Corporation announced that it had made
a tender offer to purchase at par any and all of MBIA Inc.'s
outstanding senior notes due 2034. The tender offer follows MBIA's
announcement on November 7 that it would solicit consent from its
senior noteholders to amend its debt indentures by substituting
National Public Finance Guarantee Corporation for MBIA Corp. in
the definitions of "Restricted Subsidiary" and "Principal
Subsidiary." The proposed indenture amendments, if approved by
more than 50% of the noteholders of each series of MBIA Inc.
notes, would allow MBIA Inc. to avoid a default on its own debt if
MBIA Corp. were placed into a rehabilitation or liquidation
proceeding. BAC's tender offer on 13 November seeks to obtain
ownership of at least 50% of one series of MBIA notes in order to
block MBIA's consent solicitation.

The insurance financial strength rating of MBIA Mexico, S.A. de
C.V. was also downgraded to Caa2 (national scale rating of
Caa2.mx) with a developing outlook, given its reliance on the
support from MBIA Corp.

The developing outlook of MBIA Corp. reflects the meaningful
uncertainty faced by MBIA Corp. and the potential that a global
settlement between MBIA and Bank of America could lead to either
an improvement or deterioration in the credit profile of the
insurer, depending on the specific terms.

Rating Drivers -- MBIA Insurance Corporation

Moody's cited the following factors that could lead to a rating
upgrade for MBIA Insurance Corporation:

- A global settlement between Bank of America and MBIA that would
   leave MBIA Corp. solvent

- Substantial improvements in MBIA Corp.'s commercial real estate
   exposure that would limit its potential claims

- A meaningful capital infusion into MBIA Corp.

Moody's cited the following factors that could lead to a rating
downgrade for MBIA Insurance Corporation:

- Inability to reach a global settlement with Bank of America
   that would leave MBIA corp. solvent

- Regulatory intervention that could reduce or disrupt payment of
   claims, such as a payment deferral plan or rehabilitation, that
   would cause significant loss severity to policyholders
   incommensurate with the current rating

Not affected by the rating actions were MBIA UK Insurance Limited
(insurance financial strength of B3, under review for downgrade)
and National Public Finance Guarantee Corporation (MBIA National
financial strength of Baa2, negative outlook).

RATING RATIONALE -- MBIA INC.

The rating agency commented that the downgrade of MBIA Inc.'s
senior debt to Caa1 reflects:

1) The ongoing stress at MBIA Corp. and the risk of claims payment
deferral or other regulatory action including potentially a
rehabilitation or an insolvency proceeding, in the event that MBIA
and Bank of America cannot reach a global settlement that would
leave MBIA solvent;

2) The credit linkage between MBIA Inc. and its MBIA Corp.
subsidiary given the cross default provision in MBIA Inc.'s senior
debt indentures. A rehabilitation proceeding at MBIA Corp. is an
event of default;

3) The limited liquidity at MBIA Inc. relative to potential debt
repayments due under a possible cross default with MBIA Corp. At
September 30, 2012, MBIA Inc. had $432 million of liquid assets
and $897 million of senior notes outstanding;

4) Bank of America's recent tender offer on one class of MBIA
Inc.'s senior bonds which, if successful, could prevent MBIA from
completing a consent solicitation that would have removed the
cross default provision between MBIA Corp. and MBIA Inc.

The developing outlook of MBIA Inc., similar to the outlook on
MBIA Corp., reflects the divergent possibilities for its credit
profile over the near-to-medium term.

Rating Drivers -- MBIA Inc.

Moody's cited the following factors that could lead to a rating
upgrade for MBIA Inc.:

- A successful consent solicitation from MBIA that would further
   delink MBIA Inc. from its MBIA Corp. subsidiary

- A material strengthening of MBIA Inc.'s liquidity through
   dividends and/or potential capital raises

- A global settlement between MBIA and Bank of America that would
   leave MBIA Corp. solvent

Moody's cited the following factors that could lead to a rating
downgrade for MBIA Inc.:

- Further deterioration at MBIA Corp. that increases the risks of
   an insolvency proceeding

- A successful tender offer by Bank of America that would keep
   the cross default provisions in debt indentures

- Further deterioration of MBIA Inc.'s liquidity

Treatment of Wrapped Transactions

Moody's ratings on securities that are guaranteed or "wrapped" by
a financial guarantor are generally maintained at a level equal to
the higher of the following: a) the rating of the guarantor (if
rated at the investment grade level); or b) the published
underlying rating (and for structured securities, the outlined in
Moody's special comment entitled "Assignment of Wrapped Ratings
When Financial Guarantor Falls Below Investment Grade" (May 2008);
and Moody's November 10, 2008 announcement entitled "Moody's
Modifies Approach to Rating Structured Finance Securities Wrapped
by Financial Guarantors".

In light of the downgrade to Caa2 and developing outlook of MBIA
Insurance Corp.'s rating, Moody's will adjust the rating of
securities wrapped by MBIA Corp. based on the approach discussed
above.

List of Rating Actions

The following ratings have been downgraded:

MBIA Inc. -- senior unsecured debt to Caa1 developing, from B2

MBIA Insurance Corporation: Insurance financial strength to Caa2
developing, from B3; surplus notes to C (hyb) from Caa3 (hyb) ;
and preferred stock to C (hyb) from Ca (hyb)

MBIA Mexico S.A. de C.V. -- insurance financial strength to Caa2
developing, from B3; and national scale insurance financial
strength to Caa2.mx developing, from B1.mx

The last rating action was on December 19, 2011, when Moody's
downgraded MBIA Inc. to B2.

The principal methodology used in this rating was Moody's Rating
Methodology for the Financial Guaranty Insurance Industry,
published in September 2006.

                       Overview of MBIA

MBIA Inc. provides financial guarantees to issuers in the
municipal and structured finance markets in the United States, as
well as internationally. MBIA also offers various complementary
services, such as investment management and municipal investment
contracts.

Moody's insurance financial strength ratings are opinions of the
ability of insurance companies to pay punctually senior
policyholder claims and obligations.


TUSCANY INT'L: Fitch Rates New $200MM Senior Unsecured Notes 'B+'
-----------------------------------------------------------------
Fitch Ratings has assigned a 'B+/RR4' to Tuscany International
Drilling Inc.'s proposed USD200 million, seven-year senior
unsecured notes, issuance.  The 'RR4' Recovery Rating on the
issuance reflects an average expected recovery in the event of
default.  Tuscany's foreign and local currency Issuer Default
Ratings (IDRs) are both 'B+',with a Stable Outlook.

The notes will be guaranteed by Tuscany's subsidiaries: Tuscany
South America Ltd., Tuscany Perfuracoes Brasil Ltda., Tuscany
Perfuracoes Nordeste Ltda.,Tuscany Riga Leasing S.A. and Caroil
SAS.  Fitch expects the company to use the proceeds from the
issuance primarily to refinance existing revolver debt balances,
and for general corporate purposes.

Tuscany's ratings reflect the company's moderate leverage,
experienced management team, and a technologically advanced asset
fleet, which is either new or has recently been refurbished, and
gives the company a competitive advantage.  The ratings also
incorporate a degree of counterparty credit risk in its
diversified customer base, a relatively small rig fleet, and
exposure to the cyclical and competitive onshore drilling
industry.  Tuscany faces the operational challenge of
consolidating its business following a period of historically
aggressive growth.

Moderate Leverage

Leverage is low for the rating category, reflected in a
consolidated total debt to EBITDA ratio of 3.3x reported as of the
last 12 months (LTM) ended September 2012.  Fitch expects the
company's leverage to decline below such levels over the medium
term.  Interest coverage is adequate at 3.1x as of LTM September
2012 and is expected to be around 3.5x by 2013.

The company could choose to use its accumulated cash to expand its
rig fleet, while maintaining the same leverage and break-even to
positive free cash flow.  As of September 2012, Tuscany's
consolidated nominal debt was approximately USD219 million, of
which approximately USD200 million corresponded to a term loan
used to finance acquisitions during 2011, and the balance was debt
drawn down from an existing revolving credit facility.  Pro forma
debt is expected to be around USD245 million in 2012 (consisting
of USD200 million in bonds and USD 45million drawn from a new
US$75 million revolver facility), with possible paydowns of a
drawn revolver.

Smaller Fleet Size and Customer Base

The company's rig fleet is relatively small with 41 onshore
drilling rigs, which limits operational diversification as well as
the ability to serve larger, financially stronger oil companies
and their demand for rigs.  Tuscany's small fleet size exposes the
company to weather or operational issues surrounding a particular
rig, specifically those that are more technologically advanced and
receive higher day rates.  Tuscany has exposure to customers that
tend to have a lower credit quality, which adds to counterparty
risk.  The majority of Tuscany's revenues during 2011 were
generated from small- to medium-sized independent oil and gas
companies, which in general are more sensitive to oil price
volatility when compared with larger, integrated oil and gas
companies.

Cyclical and Competitive Industry

Tuscany's cash flow generation ability is exposed to oil price
volatility, as a substantial decrease in oil prices could reduce
the exploration activity of its counterparties and lower demand
for rigs.  A sustained downturn in day rates and utilization
levels could affect Tuscany's ability to generate cash flow from
operations and pressure its ratings.  The drilling market is
highly competitive and is characterized by short-term contracts.

Companies in the sector tend to have short-term contract backlogs
of one to two years, but have built long-term relationships with
their client base.  Tuscany's contract backlog is small given the
company's short history.  The company is expected to concentrate
on building long-term commercial relationships in the short to
medium term.  A possible deterioration in customer credit quality
remains a concern, although this risk is somewhat mitigated by
reasonable customer diversification.

Growing Cash Flow Generation in 2012

The company's cash flow generation is expected to increase in 2012
due to the consolidation of recently incorporated assets in
Brazil, Colombia and Africa.  Fitch expects Tuscany's EBITDA to be
approximately USD70 million in 2012, significantly higher than the
USD32 million reported in 2011 as a result of the incorporation of
the newly acquired assets.  The company's EBITDA would likely
remain at this level over the next four years with only modest
increases due to improving efficiencies and modest fee increases.
During the first nine months of 2012, EBITDA increased to USD49
million, reflecting the new business platform.  Over the same
period, Fitch expects annual interest for Tuscany to range between
USD20 million and USD23 million and its annual maintenance capital
expenditures to average approximately USD20 million.  The company
expects total debt to remain stable at USD245 million and to
marginally decrease if it pays down a portion of its revolver debt
overtime.

Improved Liquidity Position

Tuscany was able to improve its tight liquidity as it extended its
loan due during September 2012 to September 2013 and modestly
improving its debt profile.  As of Sept 30, 2012, Tuscany's
liquidity was low at USD 4.6 million but was enhanced by the
company's access to a new committed revolving facility for USD45
million over the next five years.  In November 2012, the company
had drawn USD 25 million from such a facility. This facility will
be replaced with a new USD 75 million revolver which will come
into place once the bond is issued, Tuscany plans to draw USD45
million that will be used to cancel the previous facility, which
will leave USD30 million of additional liquidity available under
the revolver.  Fitch expects Tuscany to maintain a more robust
minimum cash position going forward.

Rating Drivers

Catalysts for a negative rating action include a significant
deterioration of the company's rig fleet utilization levels,
coupled with lower than expected day rates, which could lower
EBITDA and lead the company's credit quality to deteriorate.  The
ratings could also be downgraded if the company's debt and
coverage ratios do not improve in line with Fitch expectations.  A
positive rating action could result from the satisfactory
consolidation of the company's current business, or a higher level
of medium-term contracts with solid counterparts.

                        Company Profile

Tuscany is an oil and gas service company incorporated in Canada
that operates, for the most part, in Latin America. The company
offers drilling services and to a lesser extent work-over
services.  Approximately 80% of the company's rigs are less than
five years old or have been recently refurbished.  As a result of
this, day rates for approximately 60% of rigs are at or above
USD25,000.  Tuscany operates predominantly in Latin America and
approximately 60% of the fleet is concentrated in Colombia and
Brazil, reflecting a modest geographic diversification.  The
company was created in 2008 and was initially focused on the
construction of 19 state of the art onshore drilling rigs.  In
2011, following the acquisitions of companies in Brazil, Colombia
and Africa, Tuscany's rig fleet increased to 41. In May 2011, the
company acquired Drillfor Perfuracoes do Brazil Ltd, which added 7
rigs.  In September 2011, the company added 15 rigs to its fleet
when it acquired Caroil for an all-in cost of USD204 million.


TUSCANY INT'L: S&P Rates $200MM Senior Unsecured Notes 'B'
----------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
foreign currency rating to Canada-based oilfield services company
Tuscany International Drilling Inc.'s US$200 million senior
unsecured notes.

"The rating on the notes reflects our assessment of the company's
'vulnerable' business risk profile and 'aggressive' financial risk
profile," said Standard & Poor's credit analyst Fabiola Ortiz. "We
base our assessment on the company's participation in an industry
that is subject to cyclical demand and price volatility,
especially for drilling services. Our assessment also reflects
Tuscany's relatively small scale in a highly competitive industry
with relatively low barriers of entry. However, the following
factors mitigate these weaknesses: the technologically advanced
and relatively young fleet of drilling rigs that are specially
designed to operate in Latin American exploration and production
markets with outdated infrastructure; Tuscany's experienced
management team; the low annual maintenance capital spending
requirements, given the company's new fleet; the adequate
liquidity, pro forma after the notes' issuance; and our
expectation for a relatively strong financial performance in the
near term, as a result of the company's good operating
performance."

RATINGS LIST

Tuscany International Drilling Inc.
Corporate Credit Rating                          B/Stable/--

New Rating

Tuscany International Drilling Inc.
US$200 million senior unsecured notes            B/--/--


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Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades.  Prices
for actual trades are probably different.  Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind.  It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.

Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR-LA. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com


                            ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Valerie U. Pascual, Ivy B. Magdadaro, Frauline S.
Abangan, and Peter A. Chapman, Editors.

Copyright 2012.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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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