TCRLA_Public/121227.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Thursday, December 27, 2012, Vol. 13, No. 256


                            Headlines



A R G E N T I N A

CIMA RENTA: Moody's Assigns (P)B-bf Provisional Bond Fund Rating
COMERCIAL FRIGORIFICO: Creditors' Proofs of Debt Due Dec. 14
CONSTRUCCIONES AL NORTE: Creditors' Proofs of Debt Due Dec. 21
GALYSUR SA: Creditors' Proofs of Debt Due Dec. 27
JACKO SRL: Creditors' Proofs of Debt Due Dec. 26

ZAIA SRL: Creditors' Proofs of Debt Due Dec. 21


B R A Z I L

BANCO BONSUCESSO: Fitch Affirms 'B' IDR; Outlook Negative
CYRELA BRAZIL: Fitch Affirms 'BB' IDR; Outlook Revised to Stable
* BRAZIL: IDB Approves $125 Million for Sao Bernardo


C A Y M A N  I S L A N D S

OLYMPIA STAR: Commences Liquidation Proceedings
SAMTY CAPITAL III: Commences Liquidation Proceedings
SEAVIEW (CAYMAN): Commences Liquidation Proceedings
TRIPLEX INTERNATIONAL: Placed Under Voluntary Wind-Up


C O L O M B I A

BANCOLOMBIA SA: Moody's Affirms 'D+' BFSR; Outlook Stable


M E X I C O

VENETO BANCA: S&P Lowers Counterparty Credit Ratings to 'BB+/B'


T R I N I D A D  &  T O B A G O

CARIBBEAN AIRLINES: Former Exec Takes Airline to Court
* TRINIDAD & TOBAGO: IDB OKs $246.5MM to Improve Environment


X X X X X X X X

Upcoming Meetings, Conferences and Seminars




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A R G E N T I N A
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CIMA RENTA: Moody's Assigns (P)B-bf Provisional Bond Fund Rating
----------------------------------------------------------------
Moody's Investors Service has assigned a provisional bond fund
ratings to Cima Renta Fija Argentina Plus fund, a newly launched
fund that will be managed by a new local asset manatger CIMA.
SGFCI S.A.. The provisional ratings include a global bond fund
scale fund rating of (P)B-bf and a national scale rating of (P)A-
bf.ar.

Rating Rationale

"The fund ratings are based on Moody's expectation that CIMA RF
Argentina Plus, will maintain over 70% of invested assets in US
Dollar linked corporate and sub-sovereign bonds and ABS securities
with a minimum ratings of B-bf/A-b.ar-Baa-bf.ar. The remainder of
the fund's asset allocation will be to liquid assets including
Treasury bonds and bills issued by the Argentinean Central Bank
which carry the highest ratings in local market. This portfolio
will attempt to provide a return similar to the official exchange
rate yield + 100bp with an average duration not exceeding 2 years"
said Moody's lead analyst Carlos de Nevares.

The fund's key shareholders are expected to be institutional
investors such as local insurance companies and high net worth
individuals which have been historical clients of affiliates of
CIMA SGFI.

CIMA SGFI SA. is a new Argentinean-domiciled asset manager being a
new business unit of CIMA INVESTMENT S.A. , a local financial
group which provided investment advisory and high qualified
research for their institutional and high net-worth clients.


COMERCIAL FRIGORIFICO: Creditors' Proofs of Debt Due Dec. 14
------------------------------------------------------------
Silvia Jorgelina Zajkac, the court-appointed trustee for Comercial
Frigorˇfico Puerto Plata SA's bankruptcy proceedings, will be
verifying creditors' proofs of claim until Dec. 14, 2012.

Ms. Zajkac will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 17 in Buenos Aires, with the assistance of Clerk
No. 34, 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:

         Silvia Jorgelina Zajkac
         Panama 984
         Argentina


CONSTRUCCIONES AL NORTE: Creditors' Proofs of Debt Due Dec. 21
--------------------------------------------------------------
Silvia Monica Tauschek, the court-appointed trustee for
Construcciones al Norte SA's bankruptcy proceedings, will be
verifying creditors' proofs of claim until Dec. 21, 2012.

Ms. Tauschek will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 12 in Buenos Aires, with the assistance of Clerk
No. 24, 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:

         Silvia Monica Tauschek
         Tucuman 1438
         Argentina


GALYSUR SA: Creditors' Proofs of Debt Due Dec. 27
-------------------------------------------------
Andres Caradonti, the court-appointed trustee for Galysur SA's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until Dec. 27, 2012.

Mr. Caradonti will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 25 in Buenos Aires, with the assistance of Clerk
No. 50, 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:

         Andres Caradonti
         Uruguay 485


JACKO SRL: Creditors' Proofs of Debt Due Dec. 26
------------------------------------------------
Graciela Marta Lema de Muino, the court-appointed trustee for
Jacko SRL's bankruptcy proceedings, will be verifying creditors'
proofs of claim until Dec. 26, 2012.

Ms. de Muino will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 12 in Buenos Aires, with the assistance of Clerk
No. 24, 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:

         Graciela Marta Lema de Muino
         Basualdo 1064
         Argentina


ZAIA SRL: Creditors' Proofs of Debt Due Dec. 21
-----------------------------------------------
Jose Mario Nusyce, the court-appointed trustee for Zaia SRL's
bankruptcy proceedings, will be verifying creditors' proofs of
claim until Dec. 21, 2012.

Mr. Nusyce will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 2 in Buenos Aires, with the assistance of Clerk
No. 4, 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:

         Jose Mario Nusyce
         Sanchez de Loria 1147
         Argentina



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B R A Z I L
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BANCO BONSUCESSO: Fitch Affirms 'B' IDR; Outlook Negative
---------------------------------------------------------
Fitch Ratings has affirmed all ratings for Banco Bonsucesso S.A.
as follows:

  -- Long-term Foreign and Local Currency IDRs (Issuer Default
     Ratings) at 'B+'; Outlook Negative;
  -- Short-term Foreign and Local Currency IDRs at 'B';
  -- Viability Rating at 'b+';
  -- Support Rating at '5';
  -- Support Rating Floor at 'No Floor';
  -- Long-term National Rating at 'BBB+(bra)'; Outlook Negative;
  -- Short-term National Rating at 'F2(bra)'.

The Rating Outlook for Bonsucesso's long-term IDRs (foreign and
local currency) remains Negative.  The Negative Outlook reflects
Bonsucesso's weak albeit improving profitability and tight capital
base.  For 2013, Fitch expects Bonsucesso to face relevant
challenges, among which are the need to continue to readjust to a
new business environment, operating with a leaner structure and
with lower results.  The development of the funding structure,
with costs more compatible with its operating profile, remains as
the greatest challenge for the bank's growth.

Fitch continues to monitor the advances of the bank towards the
recovery of its profitability and preservation of its capital
adequacy.  If the bank is not able to continue the recovery of its
profits and deliver an operational ROAA of at least 1.5% during
2013, while its Fitch core capital ratio decreases to below 9%
and/or there is a sustained deterioration in delinquency
indicators, the ratings could be downgraded in the next 12 months.

However, if Bonsucesso is able to continue to improve its
profitability ratios, as seen in the last two quarters, while
preserving its Fitch Capital Ratio and asset quality, Fitch may
revise the bank's Outlook to Stable.

Bonsucesso's IDRs and National Ratings are driven by its Viability
Rating.  This reflects the institution's experience in the
competitive payroll deductible loan segment.  The ratings also
portray the relatively modest size of the bank, the low Fitch core
capital ratio and the fact of Bonsucesso being a niche bank with
large concentrations and more susceptible to economic
fluctuations.

The bank has been able to reverse the loss in the first quarter of
2012 and presented ROE of acceptable 7.4% in the first nine months
of 2012.  This was due to increased credits in the balance sheet
and lower funding costs and administrative expenses, even without
any impacts from revenue anticipation.  In September 2012, the
auditor had a few qualifications in relation to expense deferrals,
although such procedure follows Central Bank guidance.  Without
considering the deferral, the bank would have presented lower
results in the first nine months of 2012.

Payroll and deductible lending has continually faced intense
competition from large banks.  To by-pass this situation,
Bonsucesso has limited its focus to its most profitable agreements
and boosted its volume of payroll deductible loans via credit
cards, where competition is lower because only a few banks offer
the product.  Furthermore, the bank is launching a series of new
products and maintains its operation in the middle market.

In 2013, Bonsucesso is expected to maintain the funding via loan
sales to banks and/or receivables-backed investment funds (FIDCs),
although in lower volumes than in the past.  Fitch also believes
that the bank may use its special guaranteed time deposit II (DPGE
II) limit, which offers more attractive funding costs, although
assets would need to pledged as collateral to the Creditor
Guarantor Fund (FGC).  That said, an intensive use of this secured
funding source (DPGE II) may result in an undesired encumbrance of
Bonsucesso's balance sheet, which may negatively affect the
expected recovery of unsecured creditors in case of stress, which
is a similar situation to the other banks that may use this
secured funding facility in an extensive manner.  At the moment,
the bank plans to use this facility moderately, and this plan is
neutral to its ratings.  Bonsucesso continues to use nearly all of
its limit with the long-term DPGE I, which favors its term
matching and adequate liquidity, but the future growth of the DPGE
I facility is limited, as it ends in 2016.

Fitch core capital ratio remained low, around 9.5% in September
2012.  The issuance of subordinated debt, considered as Tier 2
regulatory capital, is not included in this calculation, although
Fitch recognizes the benefits from this additional funding source,
with good maturity tenors.  Given the growth expectations and the
likelihood that the profits will be modest, Bonsusesso's capital
adequacy ratios will need to be enhanced, so that the bank can
manage growth and generate further cushions to cover unexpected
losses.

As with other small- and medium-sized banks, Bonsucesso has
registered deterioration in its credit quality ratios since 2011,
mainly in the middle market portfolio.  Until the third quarter of
2012, the indicators were slightly better, but still demand
attention, despite the reduction in the corporate portfolio.

Controlled by the family Pentagna Guimaraes, Bonsucesso originated
in 1992 with the creation of Bonsucesso Financeira, transformed
into a multiple bank in 1997.


CYRELA BRAZIL: Fitch Affirms 'BB' IDR; Outlook Revised to Stable
----------------------------------------------------------------
Fitch Ratings has affirmed Cyrela Brazil Realty S.A.
Empreendimentos e Participacoes' (Cyrela) foreign and local
currency Issuer Default Ratings (IDR) at 'BB' and long-term
national scale at 'AA-(bra)'.  Fitch has also affirmed the 'AA-
(bra)' national long-term rating to its fifth debenture issuance,
in the amount of BRL400 million, due in 2015 (1st series of BRL120
million) and 2016 (2nd series of BRL280 million).  The Rating
Outlook for Cyrela's corporate ratings was revised to Stable from
Negative.

The revision of Cyrela's Outlook reflects the company's
significant improvement in its free cash flow (FCF) generation,
gradual recovery in operating margins, and reduction in its
financial leverage.  Since the second half of 2011, EBITDA margin
started to improve as a result of several initiatives taken by the
company.  The company still has the challenge to continue to
recover its EBITDA margins to levels above 18% in 2013, in line
with its historical performance.

During 2012, Cyrela has implemented a more conservative approach
in terms of project management and cost controls.  In the LTM
ended in September 2012, the company's FCF was BRL639 million,
which compares with negative FCF levels of BRL139 million and BRL1
billion during 2011 and 2010, respectively.  Cash flow generation
should continue to benefit from high volume of project deliveries
and is expected to remain positive in 2013.

Cyrela's ratings are supported by the company's position as one of
the largest developers in Brazil's real estate industry, its
conservative financial strategy sustained by a robust liquidity
position to support its business growth and the well-distributed
corporate debt maturity profile.  The ratings also incorporate the
strength of its franchise and its solid and diversified landbank.
The expectation that Cyrela will continue to generate positive
cash flow from operations in 2013 was also considered.  The
ratings are constrained by the company's moderate leverage and the
exposure of its business to the cyclicality of the homebuilding
industry, which is highly correlated to the local economy and
strongly vulnerable to an economic slowdown and to restrictions of
lines of credit.

EBITDA Margin to Gradually Recover

Cyrela has implemented several measures to improve profitability.
However, positive impacts from these initiatives should be
gradually reflected in the results, due to the long cycle of the
projects in this sector.  In the latest-12-month (LTM) ended
September 2012, Cyrela reported adjusted EBITDA (including
financial expenses allocated in costs) of BRL1.047 billion and
adjusted EBITDA margin of 16.5%, compared to BRL956 million and
15.6%, respectively, in 2011.  Cost overruns, project delays and
weak site management resulted in a loss of profitability at the
end of 2010 and during the first half of 2011.  Adjusted EBITDA
margin was 18.0% in the third quarter of 2012, compared to 11.8%
in the last quarter of 2010.

Net Leverage Expected to Slightly Improve

Lower debt and improved EBITDA generation contributed to reduce
leverage. In the LTM ended September 2012, total debt/adjusted
EBITDA ratio was 4.3x and, in net debt basis, was 2.8x.  These
ratios compare favorably with 4.9x and 3.0x, respectively, at the
end of 2011 and 5.8x and 3.6x in September 2011.  Net leverage
should further reduce to more conservative levels, of 2.5x by the
end of 2013, as EBITDA continues to increase.

Conservative Financial Strategy

Cyrela's robust liquidity combined with its lengthened corporate
debt maturity profile, strengthens the company's credit measures.
As of Sept. 30, 2012, Cyrela reported cash and marketable
securities of BRL1.7 billion and total debt of BRL4.5 billion,
with BRL1.3 billion due in the short-term and BRL1.1 billion from
October 2013 to September 2014.  Out of debt maturities in the
short-term, BRL247 million are related to corporate debt.

Great part of Cyrela's cash position is related to restricted
cash, to finance construction costs.  Cyrela's liquidity resulted
in cash/short-term debt ratio of 1.2x.  Cyrela has efficiently
managed an adequate debt profile supported by an amortization
schedule compatible with its activities, and in great part by
credit lines from SFH (Housing Financial System).

The company also benefits from the potential liquidity supported
by approximately BRL1.0 billion of receivables from completed and
sold units not linked to debt and about BRL3.0 billion of
receivables that will mature in the next 12 months, net of costs
to be incurred.

Project Launches Growth Expected to Resume In 2013

Cyrela faced delays to approve projects in Sao Paulo, which
resulted in lower than expected project launches during 2012.  In
2011, the company launched a potential sales value (PSV) of BRL6.3
billion and in the nine months ended September 2012 launched only
BRL2.5 billion.  The company plans to launch BRL5.0 billion in
2012, with high concentration in the last quarter of the year.
For 2013, project launches are expected to growth, as a few
projects that were expected for 2012 were postponed.

Cyrela has the challenge to reduce its high inventory of concluded
units.  As of Sept. 30, 2012, total inventory had estimated market
value of BRL6.2 million, of which about 15.4% consisted of
concluded units and 21.9% will be delivered up to the end of 2013.

Potential Rating or Outlook Drivers

Cyrela's ratings could be upgraded should there be a consistent
improvement in the operational cash flow generation capacity for a
consecutive period, coupled with the maintenance of a strong
liquidity position and lower leverage.  A significant reduction in
the company's operating margins, lower liquidity position; a more
concentrated corporate debt maturity profile or a more unstable
macroeconomic environment could also impact the company and the
homebuilding sector's fundamentals and result in a downgrade.


* BRAZIL: IDB Approves $125 Million for Sao Bernardo
----------------------------------------------------
The Inter-American Development Bank (IDB) has approved a
$125 million loan to improve sustainable urban mobility in Sao
Bernardo do Campo, a municipality of 800,000-plus inhabitants in
the southern outskirts of Sao Paulo, Brazil.  The loan, the second
for the program, will finance infrastructure works, promote the
use of public transportation, boost traffic safety and support
moves to reduce transport-related greenhouse gas emissions.

Under the five-year program, it will be adopted a new operating
model, with the construction of 45 km of dedicated lanes for buses
as well as bus terminals and stations and a bicycle path and
bicycle route.  Urban elements such as sidewalks for pedestrians,
universal accessibility, lighting and landscaping will also be
incorporated.  Regarding to road safety, horizontal en vertical
traffic lights will be adopted.

In order to strengthen the execution of the project 40 Department
of Environmental Management officials will be trained in
supervision, licensing, and environmental education.  With better
management and greater fluidity in traffic, it's anticipated that
vehicular source greenhouse gas emission will be reduced.

According to IDB project team leader, Dalve Soria, "the program
will bring incalculable benefits to both the population using
public transport, by improving the service and management of urban
transportation; and mainly, to the entire population of the city
of Sao Bernardo Field from the urban regeneration of areas of
direct intervention Program. "

These and other improvements are expected to reduce the annual
accident rate from 208 per 10,000 vehicles to 193 per 10,000; The
travel time for public transportation users should decrease by 25
percent; with an increase in the average speed for the system by
about the same rate during peak hours.  As a result, a 3.5% surge
in the number of passengers on working days is expected.

The loan is for a 25-year term, with a 5-1/2 year grace period,
and carries a variable interest rate based on LIBOR.  The Sao
Bernardo do Campo municipality will provide an additional $125
million in local counterpart funds.



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OLYMPIA STAR: Commences Liquidation Proceedings
-----------------------------------------------
On Oct. 18, 2012, the shareholders of Olympia Star I Enhanced Ltd.
resolved to voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
Dec. 6, 2012, will be included in the company's dividend
distribution.

The company's liquidator is:

         Newington Ltd.
         J. Andrew Murray
         Telephone: 345 949 9710
         P.O. Box 2075, 31 The Strand
         Grand Cayman KY1-1105
         Cayman Islands


SAMTY CAPITAL III: Commences Liquidation Proceedings
----------------------------------------------------
On Oct. 22, 2012, the sole shareholder of Samty Capital III
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 SPV (Cayman) Limited
         87 Mary Street, George Town
         Grand Cayman KY1-9005
         Cayman Islands
         c/o Jennifer Chailler
         Telephone: (345) 814 6847


SEAVIEW (CAYMAN): Commences Liquidation Proceedings
---------------------------------------------------
On Oct. 12, 2012, the sole shareholder of Seaview (Cayman) Limited
resolved to voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
Nov. 26, 2012, will be included in the company's dividend
distribution.

The company's liquidator is:

         Machiko Yanagiha
         c/o Wardour Management Services Limited
         Telephone: (345) 945-3301
         Facsimile: (345) 945-3302
         P.O. Box 10147 Grand Cayman KY1-1002
         Cayman Islands


TRIPLEX INTERNATIONAL: Placed Under Voluntary Wind-Up
-----------------------------------------------------
On Oct. 24, 2012, the sole member of Triplex International
Biosciences Holdings Limited 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



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C O L O M B I A
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BANCOLOMBIA SA: Moody's Affirms 'D+' BFSR; Outlook Stable
---------------------------------------------------------
Moody's Investors Service affirmed all of Bancolombia S.A.'s
ratings with stable outlook, following the announcement on
December 18, 2012 of the acquisition of 40% of the shares of the
Panamanian holding company of Grupo Financiero Agromercantil de
Guatemala (GFAM, unrated), through its subsidiary Bancolombia
Panam  S.A. The following ratings on Bancolombia were affirmed
with a stable outlook: D+ standalone bank financial strength
rating, Baa2/P-3 and Baa3/P-3 long- and short-term global local
and foreign currency deposit ratings, respectively, as well as the
bank's Baa2 long-term global local currency senior unsecured debt
rating. Bancolombia's standalone D+ bank financial strength rating
maps to a baa3 standalone credit assessment.

Bancolombia's Baa3 long term foreign currency subordinated debt
rating remains on review for downgrade.

LIST OF AFFECTED RATINGS

The following ratings were affirmed with stable outlook:

- Bank financial strength rating of D+

- Long-term global local currency deposits of Baa2

- Short-term global local currency deposits of P-3

- Long-term foreign currency deposits of Baa3

- Short-term foreign currency deposits of P-3

- Long-term global local currency senior unsecured debt rating of
   Baa2

The following rating remains on review for downgrade:

- Long-term foreign currency subordinated debt rating of Baa3

Ratings Rationale

In affirming Bancolombia's ratings Moody's mentioned that the
announced acquisition of a minority 40% shareholding in Grupo
Financiero Agromercantil de Guatemala, has a limited effect on the
bank's capitalization levels, although it enhances its business
franchise in Central America. GFAM is the holding company of Banco
Agromercantil de Guatemala, S.A., the fourth largest bank in that
country, and of Mercom, a Barbados-based offshore bank. Through
its agreement with GFAM, Bancolombia will be able to gradually
increase its shareholdings to 75% over a seven year period, which
will consolidate the bank's franchise in Central America's largest
economy.

Bancolombia is expected to pay US$216 million in cash for the 40%
stake, which is small relative to the bank's consolidated cash and
cash equivalent position of US$3.5 billion, as of September 2012.
GFAM is also small relative to Bancolombia's size, representing a
modest 4% of loans and 5% of deposits as of September 2012.

Moody's noted that Bancolombia already has an important presence
in Central America and in the so- called "northern triangle"
formed by Guatemala, El Salvador and Honduras as a result of its
2007 acquisition of El Salvador's largest bank, Banco Agricola de
El Salvador, S.A. (BanAgricola, unrated). It operates in the
Guatemalan credit markets through BanAgricola and a representative
office. The bank is nevertheless challenged by strong competition
by local powerhouses such as Banco Industrial, S.A. (Baa3, stable)
and Banco G&T Continental, S. A. (unrated), which as of September
30, 2012 represented 43% and 45% of loans and deposits in
Guatemala, respectively.

Moody's will continue to monitor Bancolombia's expansion strategy
in the region, and its effects on capitalization, asset quality,
and controls, while the rating agency acknowledges management's
success in integrating BanAgricola.

The principal methodology used in this bank's ratings was Moody's
Consolidated Global Bank Rating Methodology published in June
2012.

The date of the last Credit Rating Action on Bancolombia's was on
November 27, 2012, when Moody's reviewed the subordinated debt
ratings of certain Latin American bank issuers for downgrade.

Bancolombia is headquartered in Medellin, Antioquia and is the
largest bank in Colombia with total consolidated assets of US$51.8
billion as of September 30, 2012.

GFAM is headquartered in Guatemala City, Guatemala with total
consolidated assets of US$2.3 billion, as of September 30, 2012.



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M E X I C O
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VENETO BANCA: S&P Lowers Counterparty Credit Ratings to 'BB+/B'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long- and short-
term counterparty ratings on Italy-based Veneto Banca to 'BB+/B'
from 'BBB-/A-3'. "We also lowered our issue rating on Veneto
Banca's non-deferrable subordinated debt to 'BB-' from 'BB+' and
on its Tier 1 preference securities to 'B' from 'BB-'. We removed
all ratings from CreditWatch where they were placed with negative
implications on Aug. 5, 2012. The outlook on the long-term rating
on Veneto Banca is negative," S&P said.

"The downgrade reflects our view that Veneto Banca's capital
strengthening actions will likely not be sufficient to fully
absorb the negative impact of the increased economic risk we see
in Italy on Veneto Banca's future earnings and asset quality. We
no longer anticipate that Veneto Banca's risk-adjusted capital
(RAC) ratio, Standard & Poor's measure of capital, would
strengthen to a level comfortably above 7% over 2013-2014, from
the 5.3% we calculated at year-end 2011 (pro forma for increased
economic risk in Italy).  As a result, we have revised our
assessment of Veneto Banca's capital and earning position to
'moderate' from 'adequate.' We have consequently revised down our
assessment of Veneto Banca's stand-alone credit profile (SACP) to
'bb+' from 'bbb-', which in turn lead us to lower our ratings on
Veneto Banca to 'BB+/B' from 'BBB-/A-3'," S&P said.

"Our forecast of Veneto Banca's RAC ratio incorporates our view
that shareholder contributions will continue and that Veneto
Banca's risk weighted assets, calculated under Standard & Poor's
methodology, will likely decrease in 2013. Veneto Banca has
recently issued EUR350 million worth of convertible bonds.
According to the published terms, Veneto Banca has the option of
converting them into Veneto Banca shares from March 2014. In
accordance with Standard & Poor's bank capital criteria, we do not
give credit to convertible bonds whose conversion is not mandatory
within a given period of time in our total adjusted capital (the
numerator of the RAC)," S&P said.

"In our opinion, Veneto Banca's core earnings capacity will remain
modest in the current economic environment, as a result of low
interest rates, weak volume growth, a still high cost base, and
potentially rising credit losses. In addition, we consider the
quality of Veneto Banca's capital as modest, taking into account
the high share of deferred tax assets related to goodwill and
provisions, and hybrids we incorporate in our forecast total
adjusted capital," S&P said.

"The negative outlook on the long-term rating on Veneto Banca
reflects the possibility that we could lower the ratings if we
were to lower our ratings on the Republic of Italy (unsolicited
BBB+/Negative/A-2), and we anticipated that deteriorating economic
and banking industry conditions in Italy could affect Veneto
Banca's asset quality, capital, and earnings more than we
currently factor into the rating," S&P said.

"A deterioration of the SACP while the sovereign long-term ratings
on Italy remained at 'BBB+' would not necessarily trigger a
downgrade because such a deterioration might be cushioned by
government support according to our criteria," S&P said.

"Under our baseline expectations, we still expect the RAC ratio
for Veneto Banca to remain comfortably above 5% over the next two
years, including shareholder contributions. We expect Veneto
Banca's asset quality will continue to deteriorate in 2013, in
line with its main peers, although less than in 2012. We expect
Veneto Banca's credit losses to remain close to our forecast
Italian domestic average, at 95-100 basis points (bps) in 2012 and
2013, while maintaining relatively stable loan loss coverage. In
addition, our rating factors in our view that Veneto Banca will
maintain an average funding position and adequate liquidity,
including a reduction on central bank and other short-term funding
sources in the medium term. We think that Veneto Banca will
benefit from its deep retail customer base and continue to further
reduce its 129% loan-to-retail funding ratio over the next two
years, as occurred in 2011 and 2012," S&P said.

"We could lower the ratings if we anticipate that Veneto Banca's
RAC ratio will not remain sustainably above 5% over the next 24
months, namely if the capital strengthening actions don't
materialize or as a result of worsening economic risk we see in
Italy. We could also lower the ratings if we anticipate that
Veneto Banca's net inflows of NPAs and credit losses will exceed
our current expectations," S&P said.

"We could revise the outlook to stable if we anticipated an
improvement in economic and operating conditions for the Italian
banking system, a strengthening of Veneto Banca's capital and
earning position, and a pronounced easing of asset quality
deterioration," S&P said.



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


CARIBBEAN AIRLINES: Former Exec Takes Airline to Court
------------------------------------------------------
Jamaica Observer reports that Caribbean Airlines is now being
prosecuted in the Corporate Area Resident Magistrate's Court for
failure to comply with an Industrial Disputes Tribunal (IDT)
ruling to reinstate a former vice-president.

The action has been brought against the regional airline by Nerine
Small, former vice-president of legal affairs and corporate
secretary, in the Corporate Area Resident Magistrate's Court where
the parties are expected to reappear on Feb. 7, 2013, according to
Jamaica Observer.

The report relates that Caribbean Airlines faces a fine of
$500,000 should a ruling be made against it and a further $20,000
for each day that the breach of the IDT's ruling has occurred.

Jamaica Observer, citing court documents, notes that Caribbean
Airlines "has failed to carry out an order of the Industrial
Disputes Tribunal on July 31, 2012... that Nerine Small be
reinstated in her job effective July 1, 2011 with payment of full
normal wages".

Ms. Small started working with Air Jamaica from 2002 as associate
general counsel.  She was made general counsel in 2006.  In April
2010, Caribbean Airlines took over Air Jamaica and in May of that
year she was made vice-president of legal affairs and corporate
secretary.

Ms. Small, the report notes, was let go the following year,
according to her statement filed in the magistrate's court.
Small, who is represented by Georgia Gibson-Henlin of the law firm
Henlin Gibson Henlin, took the matter to the IDT, which made its
reinstatement order in July 2012.

Mr. Small, the report relays, said that her attorney wrote to
Caribbean Airlines on August 10 about the ruling.

The airline, Ms. Small said, responded three days later, saying
that it would comply with the order, the report says.

However, Ms. Small said on August 15 she was informed via letter
from Caribbean Airlines that her position had been made redundant.
Regarding this development, Ms. Small is contending that Caribbean
Airlines did not follow the proper procedures, the report adds.

Caribbean Airlines Limited -- http://http://www.caribbean-
airlines.com/ -- provides passenger airline services.  It also
specializes in the shipment of fresh cut flowers and packaged
meats, hatching eggs, chocolates, fruits and vegetables, frozen
and chilled fish, vaccines, newspapers, and magazines within the
Caribbean, as well as to North America and Europe.

                         *     *     *

As reported in the Troubled Company Reporter on March 21, 2012,
RJR News said that Caribbean Airlines Limited owes nearly
US$30 million to Trinidad and Tobago's fuel provider National
Petroleum.  Trinidad Express said CAL enjoys a seven-day credit
facility for aviation fuel from the company, according to RJR
News.  However, the report related that the airline has not been
able to pay the full amount when invoiced and instead has been
issuing partial payments to sustain the account.  RJR News notes
that Trinidad Express reported that the arrears were built up
over the last six weeks as no payments have been made despite an
attractive fuel subsidy which the airline has enjoyed since it
began operations in January 2007.


* TRINIDAD & TOBAGO: IDB OKs $246.5MM to Improve Environment
------------------------------------------------------------
The Inter-American Development Bank (IDB) has approved a $246.5
million loan to finance the first phase of a $546.5 million,
three-phase program aimed at improving Trinidad and Tobago's
environmental conditions by reducing uncontrolled discharge of
untreated wastewater.

Phase I will focus on the construction of two wastewater treatment
plants (WWTPs), in San Fernando and Malabar catchments
respectively, and their attendant trunk sewers, as well as on the
institutional strengthening of the Water and Sewage Authority
(WASA) through personnel training and implementation of key
actions to improve commercial management services and corporate
governance.

Planned works during this five-year-stage will include
construction of 26 km of sewerage network.  Through these
activities, the Malabar and San Fernando population currently
served in the two catchments will be covered by the new WWTP
systems.  Additionally, 90 percent of the wastewater treated by
the WWTPs will be meeting water pollution norms and have a zero or
positive net impact on downstream water quality.

"The institutional and policy reforms will allow WASA to modernize
its institutional and corporate governance and operate under a
more sustainable financial arrangement, as well as to adjust from
operating many small and medium size wastewater treatment plants
to running a smaller number of significantly larger units,"
Project Team Leader Evan Cayetano said.

Phase II - to be supported by a $100 million IDB loan - will continue
institutional strengthening efforts and integrate the sewerage
network for connection to the new WWTPs.  Phase III - ith $200
million in lending - will expand the wastewater collection system to
cover the population in catchment areas that are currently using
septic tanks and other individual sanitation solutions to treat
wastewater.

The $246.5 million IDB loan is for a 25-year term, including a 5-
1/2 year grace period, with a variable interest rate base based on
LIBOR.



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


Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Jan. 24-25, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Rocky Mountain Bankruptcy Conference
         Four Seasons Hotel Denver, Denver, Colo.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Feb. 7-9, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Caribbean Involvency Symposium
         Eden Roc Renaissance, Miami Beach, Fla.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Feb. 17-19, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Advanced Consumer Bankruptcy Practice Institute
         Charles Evans Whittaker Courthouse, Kansas City, Mo.
            Contact:   1-703-739-0800; http://www.abiworld.org/

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

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

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

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

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

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

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

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

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

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

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

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

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


                            ***********


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

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

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


                            ***********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$625 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter Chapman at 240/629-3300.


                   * * * End of Transmission * * *