/raid1/www/Hosts/bankrupt/TCRLA_Public/121217.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
Monday, December 17, 2012, Vol. 13, No. 250
Headlines
A N T I G U A & B A R B U D A
LIAT: Pilot Union Head in Favor of New Business Plan
A R G E N T I N A
PETROBRAS ARGENTINA: S&P Keeps 'B+' Issuer Credit Rating on Watch
B R A Z I L
BANIF BANCO: Moody's Downgrades BFSR to 'E'; Outlook Stable
BRMALLS PARTICIPACOES: Fitch Hikes Issuer Default Rating to BB+
PDG REALTY: Moody's Lowers Corp. Family Rating to Ba3'
C A Y M A N I S L A N D S
CRESCENT GUNHILL: Placed Under Voluntary Wind-Up
DERRICK SOLUTIONS: Placed Under Voluntary Wind-Up
EXELION GLOBAL: Commences Liquidation Proceedings
GREAT GABLE MASTER: Placed Under Voluntary Wind-Up
C O L O M B I A
* COLOMBIA: To Get US$12MM Loan to Promote Offshoring Services
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: Fitch Outlooks for Banks is Stable
* DOMINICAN REPUBLIC: Fitch Affirms Issuer Default Rating at 'B'
M E X I C O
* COACALCO: Moody's Maintains Review on B1 Rating for Downgrade
X X X X X X X X
* BOND PRICING: For the Week Dec. 10 to Dec. 14, 2012
- - - - -
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A N T I G U A & B A R B U D A
===============================
LIAT: Pilot Union Head in Favor of New Business Plan
----------------------------------------------------
Caribbean360.com reports that V. C. Bird International Airport aka
LIAT could be close to getting approval from one of its major
union stakeholders for its new business plan revealed earlier this
week.
Antigua Observer reported that head of the Leeward Island Airline
Pilots Association (LIALPA) Captain Carl Burke has described
LIAT's new business plan as "workable," "realistic," and "doable,"
according to Caribbean360.com.
The report notes that Mr. Burke's near stamp of approval came the
day after Chief Executive Officer (CEO) of the regional carrier,
Ian Brunton revealed that LIAT officials had shared their new
business plan with unions representing their workers. The report
relates that Mr. Brunton told Antigua media that the support of
the workers and their unions would be fundamental to the success
of the plan, which LIAT anticipates will make it a profitable
airline.
In an interview with the Observer, Captain Burke said that while
his association is yet to do a thorough review of the plan, "it
makes sense on the surface," Caribbean360.com notes.
The report relays that part of the business plan of the cash-
strapped regional carrier is to change its entire fleet, replacing
the Dash 8s with ATR 42s (aircraft) and 70-seaters. Projections
are that LIAT needs a total of about US $105 million to purchase
the ATR 42s and cover costs incurred for transition, training and
investments, among other expenses, Caribbean360.com says.
With the new fleet, LIAT expects to reduce maintenance expenses by
at least half of the $40 to $60 million spent annually, the report
discloses. The company projects a "modest" $7 million in profits
next year if all its plans are successful, the report relates.
LIAT also indicated that 39 out of 100 daily flights, deemed
uneconomic, will soon be dropped, Caribbean360.com relays.
However, none of the 21 nations LIAT serves will be dumped from
the airline's itinerary, the report notes,
This part of the plan did raise concerns from Burke as he said
this rationalization of routes could threaten job security, the
report adds.
As reported in the Troubled Company Reporter-Latin America on
Jan. 3, 2012, Antigua Caribarena related that former Antigua
Aviation Minister Robin Yearwood wants to see a merger between
Leeward Islands Air Transport (LIAT) and the Trinidad and Tobago-
owned Caribbean Airlines Limited, as he believes this is the only
way the Antigua-based regional carrier can survive. Mr.
Yearwood's call came against the background of media reports out
of Port of Spain that suggested CAL's management may be eyeing
expansion into the OECS territories, according to Antigua
Caribarena.
About LIAT
Headquartered in V. C. Bird International Airport in Saint George
Parish, Antigua, Leeward Islands Air Transport, known as LIAT,
operates high-frequency interisland scheduled services serving 22
destinations in the Caribbean. The airline's main base is VC
Bird International Airport, Antigua and Barbuda, with bases at
Grantley Adams International Airport, Barbados and Piarco
International Airport, Trinidad and Tobago.
=================
A R G E N T I N A
=================
PETROBRAS ARGENTINA: S&P Keeps 'B+' Issuer Credit Rating on Watch
-----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BBB' rating on
the $900 million senior secured bank loan due 2018 of Ecuador-
based oil pipeline project Oleoducto de Crudos Pesados (OCP). The
outlook remains stable.
"We base our rating on the creditworthiness of several, but not
joint, performance guarantors: Repsol S.A. (BBB-/Stable/A-3),
Occidental Petroleum Corp. (A/Stable/A-1), PetroOriental Holding
Ltd. (not rated), Anadarko Petroleum Corp. (BBB-/Positive/--), and
Petrobras Argentina S.A. (PASA; B+/Watch Neg/--). The
creditworthiness of PetroOriental and PASA are backed by letters
of credit from financial institutions that we rate 'BBB' or above.
Also, the transaction's contractual structure involving initial
shipper transportation agreements (ISTAs) between the sponsors and
OCP, and its advanced tariff payment structure in the event of
force majeure, including the expropriation of the pipeline,
isolate OCP from sovereign credit risk. The guarantors are bound
by 'ship-or-pay' or advance tariff agreements, even in a remote
scenario in which the Ecuadorian government nationalizes the
pipeline or the guarantors' economic incentives decrease," S&P
said.
"The stable outlook reflects the performance guarantors' currently
adequate creditworthiness. Deterioration in the credit quality of
the guarantors with the highest participation in the project could
lead us to lower our rating on OCP's debt. Although we don't
believe an upgrade is probable in the short-to-medium term, it
could be possible if the creditworthiness of the guarantors with
the highest participation in the project improves significantly,"
S&P said.
===========
B R A Z I L
===========
BANIF BANCO: Moody's Downgrades BFSR to 'E'; Outlook Stable
-----------------------------------------------------------
Moody's Investors Service downgraded Banif Banco de Investimento
(Brasil) S.A.'s standalone financial strength rating (BFSR) to E,
from E+, and lowered its standalone baseline credit assessment to
caa2 from b3. Moody's also downgraded the bank's long-term global
local and foreign currency deposit ratings to Caa2, from B2, and
the long- and short-term Brazilian national scale deposit ratings
to Caa2.br and BR-4, from Ba1.br and BR-3, respectively. The
short-term local and foreign currency deposit ratings of Not Prime
remained unchanged. All the long-term deposit ratings are on
review for possible further downgrade, while the outlook on the
BFSR is stable.
The rating actions incorporate the weakening of Banif
Investimento's financial strength, and follow the downgrade of the
standalone credit assessment and supported ratings of Banif -
Banco Internacional do Funchal, S.A. (Banif Portugal). For further
details, please refer to the press release dated December 4, 2012
"Moody's takes actions on three Portuguese banks: BCP, Banif and
CGD".
RATINGS RATIONALE
In downgrading Banif Investimento's standalone credit assessment
to caa2 from b3, Moody's highlights the recurrent losses
originated by low revenues from core investment banking
activities, including the negative performance of an investment
fund, and high funding costs. Margin compression resulting from
modest client business volumes, increased competition within the
segment, and the decline of the benchmark interest rate have also
contributed to negative bottom-line results.
Moody's also notes the low consolidated capitalization ratio
reported by Banif Investimento and its sister bank, Banif - Banco
Internacional do Funchal (Brasil), S.A., (unrated), which at 9.38%
was below the regulatory minimum of 11%, in September 2012.
Moody's acknowledges the recent capital injection by Banif
Portugal, which is intended to restore capital ratios, but notes
that Banif Investimento's small franchise and its limited earnings
generation capability will continue to constrain capital
replenishment through earnings. The weak consolidated capital
position challenges the bank's growth prospects.
The review for downgrade of Banif Investimento's deposit ratings
reflects the weakened creditworthiness of Banif Portugal, which
generates uncertainty about its ability to continue to support the
Brazilian operation, were further capital injections to be
required.
Moody's last rating action on Banif Investimento took place on
October 11, 2011, when Moody's downgraded the bank's long-term
global local currency and foreign currency deposit ratings to B2
from B1, with a negative outlook, and Brazilian national scale
deposit ratings to Ba1.br and BR-3 from Baa1.br and BR-2, also
with a negative outlook. The BFSR was confirmed at E+, with a
stable outlook. The rating action concluded a review for downgrade
initiated on June 15, 2011.
Banif Banco de Investimento (Brasil) S.A. is headquartered in Sao
Paulo, Brazil. As of September 2012, the bank had total assets of
approximately R$384 million (US$189 million) and equity of R$124
million (US$61 million).
The following ratings of Banif Banco de Investimento (Brasil) were
downgraded:
Bank financial strength rating: to E from E+, with stable outlook
Long-term global local-currency deposit rating: to Caa2 from B2,
on review for downgrade;
Long-term foreign-currency deposit rating: to Caa2 from B2, on
review for downgrade;
Brazilian national scale deposit ratings: to Caa2.br and BR-4
from Ba1.br and BR-3, on review for downgrade
BRMALLS PARTICIPACOES: Fitch Hikes Issuer Default Rating to BB+
---------------------------------------------------------------
Fitch Ratings has upgraded the ratings of BRMALLS Participacoes
S.A. (BRMALLS) as follows:
-- Foreign currency Issuer Default Rating (IDR) to 'BB+' from
'BB' ';
-- Local currency IDR to 'BB+; from 'BB';
-- Long-term national scale rating to 'AA(Bra)' from 'AA-(Bra)';
-- BRL320 million local debentures, first and second tranches
due in 2014 and 2016, respectively, to 'AA(Bra)' from 'AA-
(Bra)'.
-- BRL400 million local debentures, first and second tranches
due in 2017 and 2019, respectively, to 'AA (Bra)' from 'AA-
(Bra)'.
Fitch has also upgraded the following ratings of BR Malls
International Finance Limited (Finco):
-- Foreign currency IDR to 'BB+' from 'BB';
-- USD175 million perpetual notes to 'BB+' from 'BB';
-- USD230 million perpetual notes to 'BB+' from 'BB'.
The Rating Outlook is Stable.
The rating upgrades are a result of BRMALLS' emergence as the
largest shopping center operator in Brazil with 51 malls
throughout the country, an increase from 34 during 2008. The
revenue stream from these malls has resulted in stable and
predictable cash flows. The company's consistent use of a balance
of equity and debt to fund its organic and inorganic growth during
the past five years has kept leverage levels low relative to the
value of its assets.
The Stable Rating Outlook reflects the expectation that BRMALLS
will continue to deliver positive operating results based upon its
strong market position and the high quality of its assets.
Leverage is not expected to increase from current levels, as
additional growth is expected to occur through a continued
balanced mix of funding that will not compromise its capital
structure.
Growing Revenues and EBITDA Driven by Investments
During the latest 12 months (LTM) ended Sept. 30, 2012, BRMALLS
revenues were BRL1.1 billion, an increase from BRL861 million and
BRL546 million during 2011 and 2010. BRMALLS' EBITDA for the LTM
was BRL844 million, which compares positively with its EBITDA
levels of BRL685 million in 2011 and BRL442 million and 2010.
This growth has been driven by investments of BRL1.4 billion
during the LTM, BRL2.4 billion during 2011 and BRL2.2 billion
during 2010. Equity funding consisted of a BRL446 million
offering in 2009 and a BRL731 million secondary issuance during
2011.
Lease Characteristics Support Revenue Stream
BRMALLS rents and net operating income per square meter are stable
to positive. They are supported by a lease structure that consist
of fixed rent payments (70%) and tenant reimbursements (10%),
which cover costs associated with property management and taxes.
The lease portfolio has staggered lease expiration dates. About
75% of BRMALLS rental income contracts having expiration dates
beginning in 2015 and beyond.
Diversified Business Lowers Risks
BRMALLS' increased geographic, income and tenant diversification
make it less prone to fluctuations in the domestic economy. The
company has operations in all five regions of Brazil; the largest
mall represents approximately 13% of its total revenue. The
company's diversification spreads over to its customer base as it
looks to serve all income segments. Only about 10% of the
company's total annual revenues from rent and services are derived
from anchor stores. None of those stores is individually
responsible for more than 2% of the company's annual revenues from
rent and services.
No Major Changes Expected in Leverage
The gross leverage of BRMALLS is expected to remain around 5x in
the medium term, which compares well with regional and global
players in the industry. As of Sept. 30, 2012, the company's
total debt was BRL4.5 billion. The company's gross and net
leverage ratios were 5.4x and 4.2x as of Sept. 30, 2012. Fitch
base case projects 2013 revenues at approximately BRL1.3 billion
and an EBITDA margin of 80%. The company's investments are
expected to be around BRL1.2 billion, which should result in gross
leverage stable around 5x.
Adequate Liquidity
BRMALLS maintains adequate liquidity. As of Sept. 30, 2012, the
company faces debt amortizations of BRL1 billion and BRL250
million during 2013 and 2014, respectively, and has a cash
position of BRL880 million. BRLMALLS short-term debt obligations
are expected to be reduced to about BRL500 million by the end of
2012 through some debt refinancing. BRMALLS has a high level of
unencumbered assets; approximately 51% of the company's owned GLA
(429 thousand m2) is free of any liens. The company could use
these assets in the future to access liquidity. The high level of
unencumbered assets also presents a good recovery prospect for the
unsecured debt in a default scenario, with LTV levels in the range
of 30% to 50%.
Rating Expectations
Fitch expects BRMALLS to maintain adequate leverage and liquidity
levels. Fitch would consider a negative rating action if the
company's financial profile deteriorates due to some combination
of the following factors: aggressive capex; adverse macroeconomic
trends leading to weaker credit metrics; significant dividend
distributions; and higher vacancy rates or deteriorating lease
conditions. A stronger capital structure could lead to an
increase in the company's ratings.
PDG REALTY: Moody's Lowers Corp. Family Rating to Ba3'
------------------------------------------------------
Moody's America Latina has downgraded the corporate family ratings
assigned to PDG Realty S.A. Empreendimentos e Participacoes (PDG)
to Ba3 from Ba2 on the global scale and to A3.br from Aa3.br on
Brazilian national scale. At the same time, Moody's downgrade the
company's BRL250 million senior secured CCBs were downgraded to
Ba3/A3.br from Ba2/Aa3.br, while BRL140 million senior unsecured
debentures referring to the company's 7th issuance of debentures
were downgraded to B1/Baa2.br from Ba3/A2.br. The outlook for all
ratings is negative.
The downgrade in PDG's ratings to Ba3 reflects the significant
deterioration in the company's credit metrics over the last twelve
months and the uncertainty regarding the pace of recovery. These
actions complete the ratings review initiated by Moody's on
November 19, 2012.
Ratings downgraded:
- Corporate Family Rating: to Ba3 from Ba2 (global scale); to
A3.br from Aa3.br (national scale);
- BRL250 million 5-year senior secured CCB (Cedula de Credito
Bancario): to Ba3 from Ba2 (global scale); to A3.br from Aa3.br
(national scale);
- BRL140 million 7-year senior unsecured debentures of the
company's 7th issuance of debentures: to B1 from Ba3 (global
scale); to Baa2.br from A2.br (national scale)
Ratings Rationale
PDG's Ba3 corporate family rating reflects its position as one of
the largest homebuilders in Brazil, with strong brand name and
diversity in terms of product offering, ranging from low to high
income apartments and office buildings. The rating is further
supported by PDG's long track record of operations in the
Brazilian homebuilding sector through Goldfarb, and its resilient
access to capital markets. On the other hand, these positive
factors are balanced by the uncertainty related to PDG's evolving
strategic guidelines after the increased participation of Vinci
Partners in the company's control this September. The high
leverage resulting from an aggressive growth strategy also
constrains the rating.
The downgrade results from weaker than expected operating
performance over the last twelve months that caused significant
deterioration in the company's credit metrics, particularly
leverage ratios and interest coverage. Despite the BRL796 million
equity capitalization completed this September and the other
ongoing initiatives to restructure and downsize the business,
Moody's believes that PDG's credit metrics and margins may not
recover significantly before 2014.
The negative outlook considers expectations that the company's
cash flows will remain pressured by large working capital needs,
increased execution risks and lower operating profitability. It
also reflects the company's challenges in the near term to
streamline its operations in order to generate positive cash flow
and reduce leverage in a timely fashion.
Like most Brazilian homebuilders, PDG has been challenged by cost
overruns, as well as delays in construction and mortgage transfers
to the banks. As a result, adjusted gross margins have shrunk to
20.1% LTM September 2012 from 33.3% in 2011 and 36.3% in 2010,
while the total debt to book capitalization ratio increased to
53.1% at the end of September 2012 from 52.4% in December 2011 and
51.3% in December 2010.
In view of the delay in project approvals, more selective demand
and lower sales speed, the company's management also decided to
reduce the pace of new launches. Launches for the 9M12 reached
BRL2.0 billion in potential sales value, compared to BRL9.0
billion in 2011 and BRL7 billion in 2010. Given the long
construction cycle that is typical of this industry, the reduction
in the company's launches today will limit revenue and EBIT growth
in 2014/2015.
From 2009 through 2011, working capital needs ranged from BRL1.2
billion to BRL2.0 billion per year. Over the last nine months
ended September 2012 working capital needs have reached BRL1.4
billion as a result of the significant pipeline of construction
projects launched in 2010 and 2011 and lower sales speed, a trend
that should continue towards year end. At this point, there is low
visibility when the company will turn free cash flow positive.
Despite high leverage PDG's liquidity remains adequate. At the end
of September, 2012, the company had BRL1.8 billion in cash and
marketable securities on its balance sheet and BRL1.9 billion in
receivables from finished units that should become available with
the effective transfer mortgages to lending banks, a process that
takes on average six months. The company has short term debt
maturities of BRL2.1 billion, of which approximately BRL1.5
billion (71% of ST debt) are project related loans that will be
repaid once these projects are delivered.
The limited internal cash flow generation has been supported by
adequate availability of project loans under the Sistema
Financeiro de Habita‡ao (SFH). According to the management there
are about BRL2.9 billion undrawn committed facilities under the
SFH that puts the company in a comfortable position to meet its
current project commitments.
The BRL140 million senior unsecured debentures of the company's
7th issuance of debentures that were issued by holding company are
structurally and effectively subordinated to other secured debt at
the project's level, as a result they are rated one notch lower
than PDG's CFR in the global scale given the high proportion of
secured debt in the consolidated capital structure (79 % as of
September 30,2012).
PDG's outlook could stabilize if the company is able to improve
its leverage metrics such as total debt to capitalization falls
below 50% and EBIT interest coverage moves above 2.5 times on a
sustainable basis.
PDG's ratings could be further downgraded if the company faces a
significant deterioration in its liquidity profile due to a
downturn in the homebuilding industry or due to excessive dividend
payout that could instead be used for debt reduction.
Quantitatively, the ratings could be downgraded if total debt to
capitalization remains above 55% or EBIT interest coverage remains
below 1.0x for a prolonged period.
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) and net losses of
BRL410million (USD219 million).
The principal methodology used in rating PDG was the Global
Homebuilding Industry Methodology published in March 2009.
==========================
C A Y M A N I S L A N D S
==========================
CRESCENT GUNHILL: Placed Under Voluntary Wind-Up
------------------------------------------------
On Sept. 4, 2012, the sole shareholder of Crescent Gunhill
Offshore Investors Ltd. resolved to voluntarily wind up the
company's operations.
Only creditors who were able to file their proofs of debt by
Dec. 5, 2012, will be included in the company's dividend
distribution.
The company's liquidator is:
Linburgh Martin
c/o Neil Gray
Telephone: (345) 949 8455
Facsimile: (345) 949 8499
Intertrust (Cayman) Limited
Harbour Place, Fourth Floor
P.O. Box 1034, Grand Cayman, KY1-1102
Cayman Islands
DERRICK SOLUTIONS: Placed Under Voluntary Wind-Up
-------------------------------------------------
On Oct. 22, 2012, the sole member of Derrick Solutions Middle East
Ltd. resolved to voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Nov. 27, 2012, will be included in the company's dividend
distribution.
The company's liquidator is:
Richard Finlay
c/o Noel Webb
Telephone: (345) 814 7394
Facsimile: (345) 945 3902
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
EXELION GLOBAL: Commences Liquidation Proceedings
-------------------------------------------------
On Oct. 19, 2012, the sole shareholder of Exelion Global Macro
Limited resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Dec. 5, 2012, will be included in the company's dividend
distribution.
The company's liquidator is:
Intertrust Corporate Services (Cayman) Limited
87 Mary Street, George Town
Grand Cayman KY1-9002
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 814 6847
GREAT GABLE MASTER: Placed Under Voluntary Wind-Up
--------------------------------------------------
On Sept. 29, 2012, the sole shareholder of Great Gable Master
Fund, Ltd. resolved to voluntarily wind up the company's
operations.
Only creditors who were able to file their proofs of debt by
Dec. 3, 2012, will be included in the company's dividend
distribution.
The company's liquidator is:
Appleby Trust (Cayman) Ltd.
P.O. Box 1350 Clifton House
75 Fort Street, George Town
Grand Cayman KY1-1108
Cayman Islands
===============
C O L O M B I A
===============
* COLOMBIA: To Get US$12MM Loan to Promote Offshoring Services
--------------------------------------------------------------
The Inter-American Development Bank (IDB) approved a $12 million
loan to promote the expansion of the offshoring services industry
in Colombia in order to increase employment, boost exports of high
value-added services, and improve the sector's business climate.
Colombian services centers have in recent years managed to attract
multinational firms such as CitiGroup, Hewlett Packard, Kimberly
Clark, Siemens and Tata as clients, and in 2011 the sector
accounted for $640 million, or 13 percent of total services
exports. Still, the country is not yet recognized as a top global
offshoring location and lags behind some neighboring countries.
In order to help Colombia gain ground, the Bank will finance a
government program based on public-private partnerships between
universities and businesses. Under this system, the curricula
include both technical knowledge and so-called "soft" skills (such
as customer service and English) that address the industry's
specific needs. The four-year program will train 4,000 youths.
It also will strengthen the business capacities ofsmall and
medium-sized enterprises in the global services sector to help
them raise the value of their exports from the current 15.5
percent of total exports to 21.6 percent by the end of the
program.
Additionally, it will contribute to update the industry's
regulatory framework and seek partnerships with Colombians living
abroad -- particularly in the United States and Spain -- to help
promote the sector.
The loan, extended under the IDB's Flexible Financing Facility, is
for a 15-year term, with a 15-year grace period and at a LIBOR-
based interest rate, although under this flexible arrangement
Colombia has the option to request changes in the conditions.
==================================
D O M I N I C A N R E P U B L I C
==================================
* DOMINICAN REPUBLIC: Fitch Outlooks for Banks is Stable
--------------------------------------------------------
The 2013 outlook for banks in Central America and Dominican
Republic is stable, based on enhanced profitability, sound balance
sheets, ample liquidity and resilience to external risks,
according to Fitch Ratings.
'Lower loan loss provisions, strong credit growth, asset
rebalancing, and some advances in efficiency will boost banks'
profits during 2013,' says Rene Medrano, Senior Director in
Fitch's Financial Institutions Group. 'Fitch anticipates double
digit credit growth rates in the region throughout 2013, with the
exception of El Salvador and the Dominican Republic, where credit
growth will be slower. The broad availability of funds, together
with the relatively low levels of banking penetration, suggests
that growth may be sustainable over a longer time horizon.'
Competitive pressures are likely to rise as banks seek to increase
the return on their assets by optimizing their liquidity. An
increase in South American players and the regionalization of some
local financial groups are expected to boost loan supply. Banks'
net interest margin will have limited room for improvement as a
result.
Credit quality metrics will continue to improve in some of the
banking systems. While banks in Panama will continue to exhibit
notably low levels of past due loans, Fitch foresees further
deterioration in loans in the Dominican Republic during 2013.
Banks in the region will continue boasting robust capital bases,
contributing to systemic stability. But Guatemalan banks will
continue lagging their regional peers despite the advances of
previous years.
* DOMINICAN REPUBLIC: Fitch Affirms Issuer Default Rating at 'B'
----------------------------------------------------------------
Fitch Ratings has revised the Rating Outlooks on the Dominican
Republic's generation companies' ratings to Stable from Positive.
The agency has also affirmed the issuers' long-term foreign and
local currency Issuer Default Ratings (IDRs) at 'B'.
The revision of the Dominican Republic's sovereign Outlook to
Stable from Positive reflects the deterioration in the sovereign's
fiscal accounts; present external vulnerabilities; and the new
government's challenges to reduce fiscal deficits and stabilize
debt ratios in the context of budgetary rigidities, rising social
demands and slower economic growth.
The ratings of the Dominican Republic generation companies reflect
the electricity sector's high dependency on transfers from the
central government to service its financial obligations. The
Dominican Republic's power sector is characterized by low
collections from end-users and high electricity losses. Such
conditions have kept distribution companies from effectively
transferring cash to the country's generation companies, and the
government subsidies have covered this gap during recent years.
This dependence on government transfers links the credit quality
of the distribution and generation companies in the country to
that of the sovereign.
Fitch has affirmed the following ratings, and revised Outlooks as
indicated:
AES Andres Dominicana SPV (Aes Dominicana)
-- Foreign Currency IDR at 'B', Outlook to Stable from Positive;
-- USD284 million notes due 2020 at 'B/RR4'.
AES Andres B.V.
-- National Long-term rating at 'A-(dom)'
Empresa Generadora de Electricidad Itabo, S.A.
-- Foreign Currency IDR at 'B', Outlook to Stable from Positive;
-- Local Currency IDR at 'B', Outlook to Stable from Positive;
-- National Long-term rating at 'A-(dom)';
-- Sr. unsecured notes due 2013 at 'A-(dom)'.
Itabo Dominicana SPV
-- Foreign Currency IDR at 'B', Outlook to Stable from Positive;
-- USD284 million notes due 2020 at 'B/RR4'.
Empresa Generadora de Electricidad Haina, S.A.
-- Foreign Currency IDR at 'B', Outlook to Stable from Positive;
-- Local Currency IDR at 'B', Outlook to Stable from Positive;
-- National Long-term rating at 'A-(dom)';
-- USD175 million notes due 2017 at 'B/RR4';
-- Sr. unsecured notes due 2012 and 2016 at 'A-(dom)'.
===========
M E X I C O
===========
* COACALCO: Moody's Maintains Review on B1 Rating for Downgrade
---------------------------------------------------------------
Moody's de Mexico continues the review for possible downgrade on
Coacalco's B1.mx (Mexican National Scale) and B3 (Global Scale,
local currency) issuer ratings.
Ratings Rationale
The extension of the review for a possible downgrade of the
Municipality of Coacalco's issuer ratings of B3 (Global Scale,
local currency) and B1.mx (Mexican National Scale), reflects a
continued lack of clear information concerning the short-term
financing of the Municipality and that uncertainty remains
regarding the municipality's capacity to pay its short term debt
before the current administration period ends (December 31st).
The municipality has informed us that it has refinanced its MXN 43
million loan (original amount) with CI Banco that was due in
October with a new loan with the same bank. Notwithstanding,
Moody's does not have evidence supporting this affirmation. In
addition, Moody's recognizes that under the legal framework of the
State of Mexico, its municipalities must pay off their short term
debt before the conclusion of the administration period.
The ratings review will focus on Coacalco's capacity to respect
all upcoming debt service obligations in a full and timely manner.
The review period will conclude within the next three months.
WHAT COULD CHANGE THE RATINGS UP/DOWN
While Moody's does not expect upward pressures on Coacalco'
ratings in the near term the review could conclude with the
confirmation of the municipality's current ratings if Coacalco
provides evidence supporting the timely repayment of its short
term debt. Alternatively, evidence that the municipality has
failed to meet its obligations could lead to a downgrade of
potentially several notches to reflect Moody's assessment of
Coacalco's credit culture and expected loss to the lenders.
Credit ratings incorporate Moody's macroeconomic outlook and its
implications on key variables that may include but not be limited
to interest rates, inflation, economic growth, unemployment,
performance of counterparties, credit availability, sector level
changes in competitive conditions, supply/demand and margins, and
issuer specific changes in capital structure, competitive
positioning, governance, risk profile, and liquidity. Unexpected
changes in such variables may lead to changes in the credit rating
level, potentially by several notches. Further information on the
sensitivity of the rating to specific assumptions is included in
this disclosure.
The methodologies used in this rating were "Regional and Local
Governments Outside the US," published in May 2008, "The
Application of Joint Default Analysis to Regional and Local
Governments," published in December 2008, "Enhanced Municipal and
State Loans in Mexico" published in January 2011 and "Mapping
Moody's National Scale Ratings to Global Scale Ratings" published
in October 2012.
The date of the last Credit Rating Action was August 23, 2012.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week Dec. 10 to Dec. 14, 2012
-----------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
ARGENTINA
---------
ARGENT-$DIS 8.28 12/31/2033 USD 58.3
ARGENT-$DIS 8.28 12/31/2033 USD 60.3
ARGENT-$DIS 8.28 12/31/2033 USD 63
ARGENT-$DIS 8.28 12/31/2033 USD 66
ARGENT-$DIS 8.28 12/31/2033 USD 69.5
ARGENT-PAR 1.18 12/31/2038 ARS 40.9
ARGENT-DIS 7.82 12/31/2033 EUR 45
ARGENT-DIS 7.82 12/31/2033 EUR 59.6
ARGENT-DIS 7.82 12/31/2033 EUR 59.3
ARGENT-DIS 4.33 12/31/2033 JPY 31
ARGENT-DIS 4.33 12/31/2033 JPY 42
ARGENT-PAR 0.45 12/31/2038 JPY 15
ARGENT-PAR&GDP 0.45 12/31/2038 JPY 8
ARGNT-BOCON PRE9 2 3/15/2014 ARS 51
BANCO MACRO SA 9.75 12/18/2036 USD 69
BANCO MACRO SA 9.75 12/18/2036 USD 68.3
BANCO MACRO SA 9.75 12/18/2036 USD 68.3
CAPEX SA 10 3/10/2018 USD 66.8
CAPEX SA 10 3/10/2018 USD 65
CIA LATINO AMER 9.5 12/15/2016 USD 60.5
EMP DISTRIB NORT 10.5 10/9/2017 USD 36.8
EMP DISTRIB NORT 9.75 10/25/2022 USD 45.2
EMP DISTRIB NORT 9.75 10/25/2022 USD 46.4
PROV BUENOS AIRE 9.625 4/18/2028 USD 60.9
PROV BUENOS AIRE 9.625 4/18/2028 USD 61.1
PROV BUENOS AIRE 9.375 9/14/2018 USD 70.9
PROV BUENOS AIRE 9.375 9/14/2018 USD 71
PROV BUENOS AIRE 10.875 1/26/2021 USD 72.5
PROV BUENOS AIRE 10.875 1/26/2021 USD 72.4
PROV DE FORMOSA 5 2/27/2022 USD 63.6
PROV DE MENDOZA 5.5 9/4/2018 USD 74.5
PROV DE MENDOZA 5.5 9/4/2018 USD 71
PROV DEL CHACO 4 12/4/2026 USD 29.3
PROV DEL CHACO 4 11/4/2023 USD 56.4
TRANSENER 9.75 8/15/2021 USD 37.1
TRANSENER 8.875 12/15/2016 USD 40.5
TRANSENER 9.75 8/15/2021 USD 45
BRAZIL
------
CESP 9.75 1/15/2015 BRL 73.8
CAYMAN ISLAND
-------------
BANCO BPI (CI) 4.15 11/14/2035 EUR 57.8
BCP FINANCE CO 5.543 EUR 35.4
BCP FINANCE CO 4.239 EUR 36.7
BES FINANCE LTD 5.58 EUR 59.5
BES FINANCE LTD 4.5 EUR 64.6
CHINA FORESTRY 10.25 11/17/2015 USD 52.8
CHINA FORESTRY 10.25 11/17/2015 USD 56
CHINA SUNERGY 4.75 6/15/2013 USD 52.9
EFG HELLAS CAYMA 9 3/8/2019 EUR 69.3
ESFG INTERNATION 5.753 EUR 43.5
GOL FINANCE 8.75 USD 61.9
GOL FINANCE 8.75 USD 69
GREENFIELDS PETR 9 5/31/2017 CAD
JINKOSOLAR HOLD 4 5/15/2016 USD 41.9
LDK SOLAR CO LTD 10 2/28/2014 CNY
LDK SOLAR CO LTD 4.75 4/15/2013 USD 67.5
LDK SOLAR CO LTD 4.75 4/15/2013 USD 63
LUPATECH FINANCE 9.875 USD 34.3
LUPATECH FINANCE 9.875 USD 41
PUBMASTER FIN 6.962 6/30/2028 GBP 56.3
PUBMASTER FIN 8.44 6/30/2025 GBP
RENHE COMMERCIAL 13 3/10/2016 USD 71.9
RENHE COMMERCIAL 13 3/10/2016 USD 54.5
RENHE COMMERCIAL 11.75 5/18/2015 USD 73.8
RENHE COMMERCIAL 11.75 5/18/2015 USD 73
SUNTECH POWER 3 3/15/2013 USD 39.3
SUNTECH POWER 3 3/15/2013 USD 39.4
ALMENDRAL TEL 3.5 12/15/2014 CLP 42
CHILE
-----
CHILE 3 1/1/2042 CLP 65.8
CHILE 3 1/1/2042 CLP 65.8
CHILE 3 1/1/2040 CLP 67.3
CHILE 3 1/1/2040 CLP 67.3
COLBUN SA 3.2 5/1/2013 CLP 24.9
PUERTO RICO
-----------
CFG INVEST SAC 9.75 7/30/2019 USD 78
PRICO
PUERTO RICO CONS 6.5 4/1/2016 USD 67.5
VENEZUELA
---------
PETROLEOS DE VEN 5.5 4/12/2037 USD 68
PETROLEOS DE VEN 5.375 4/12/2027 USD 70
***********
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***********
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Copyright 2012. All rights reserved. ISSN 1529-2746.
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