/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130128.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, January 28, 2013, Vol. 14, No. 18 Headlines A N T I G U A & B A R B U D A LIAT: Increasing Fleet but Losing Profits A R G E N T I N A BANCO DE SERVICIOS: Moody's Assigns 'B3' Rating to AR$100MM Debt B R A Z I L BANCO DO BRASIL: S&P Rates Perpetual Subordinated Securities 'BB' GAFISA SA: Moody's Says Debt Renegotiation Credit Positive RB CAPITAL: Moody's Says Amendments No Impact on 'Ba3' Rating C A Y M A N I S L A N D S 3L FUND: Shareholders Receive Wind-Up Report 3L MASTER: Shareholders Receive Wind-Up Report ARES IV: Shareholders Receive Wind-Up Report ARROW FUND: Shareholder Receives Wind-Up Report BCI HOLDINGS: Shareholders Receive Wind-Up Report CABLE (DFS 2002): Shareholders Receive Wind-Up Report CHYPS CBO 1999-1: Shareholders Receive Wind-Up Report DRAXIS ENERGY: Shareholders Receive Wind-Up Report DRAXIS ENERGY FUND: Shareholders Receive Wind-Up Report DRAXIS ENERGY INTERMEDIATE: Shareholders Receive Wind-Up Report KNIGHT FUNDING: Shareholders Receive Wind-Up Report MILLGATE INTERNATIONAL: Shareholders Receive Wind-Up Report NMT HOLDINGS: Shareholders Receive Wind-Up Report NS INVESTMENTS XIV: Shareholder Receives Wind-Up Report PIXCEL LTD: Shareholder Receives Wind-Up Report RELIANCE EUROPEAN: Shareholders Receive Wind-Up Report SORIN CL MASTER: Shareholder Receives Wind-Up Report SORIN CL OFFSHORE: Shareholder Receives Wind-Up Report TWICKENHAM INSURANCE: Shareholder Receives Wind-Up Report VALE CAPITAL: Shareholder Receives Wind-Up Report C O L O M B I A BANCO DAVIVIENDA: Fitch Affirms 'BB+' Subordinated Debt Rating M E X I C O AEROPUERTOS DOMINICANOS: S&P Assigns 'BB-' Rating to $550MM Notes P U E R T O R I C O ORIENTAL FINANCIAL: S&P Affirms 'BB+' Counterparty Credit Rating T R I N I D A D & T O B A G O CL FIN'L: Ex-Boss Duprey Doesn't Want to be Questioned on CLICO T U R K S & T A I C O S SANDALS RESORTS: To Pay Government US$12 Million X X X X X X X X * BOND PRICING: For the Week Jan. 21 to Jan. 25, 2013 - - - - - =============================== A N T I G U A & B A R B U D A =============================== LIAT: Increasing Fleet but Losing Profits ----------------------------------------- Caribbean360.com reports that Leeward Islands Air Transport's (LIAT) fleet upgrade has started with two new ATR 72-600 aircraft slated to be delivered in June and August this year by the Air Lease Corporation. The aircraft will be on a long-term lease from the Los Angeles, California-based company, according to Caribbean360.com. Caribbean360.com notes that the airline has also announced that it has ordered three 48-seater ATR 42-600s to start replacement of former turboprops. According to a release issued by LIAT, the deal also includes options for two 68-seat ATR 72-600, and is valued at over US$ 100 million, the report relates. LIAT is expected to receive its first ATR 42-600 in June 2013, the report discloses. Caribbean360.com notes that the airline currently operates a fleet of 14 aircraft over its Caribbean network and LIAT will be progressively replacing its current fleet of former turboprop aircraft. However, the report says that despite the progress being made in this area, indications are from the airline that its profit projections are falling short of target. The report relays that Antigua Observer reported that despite initial projections that the airline would make a "modest" US$7 million profit in 2013, a document prepared by LIAT's Chief Executive Officer (CEO) Captain Ian Brunton, indicates that this profit had hinged on completing its re-fleeting exercise earlier than now contemplated. In early December 2012, the report notes that the severely undercapitalized airline said it expected to record $23 million in losses for that year. The airline lost $20.2 million in 2010 and $43 million in 2011, the report discloses. The losses were attributed to the 66 taxes that LIAT pays and the many unprofitable flights the airline provides to 18 of the 21 destinations it serves, the report says. Caribbean360.com relays that LIAT's five-year business plan indicated 39 out of the 100 daily flights would be dropped from this year because they are unbeneficial to the company. It was noted that if regional governments want LIAT to retain those flights, they must offer financial support to the company, 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 ================= BANCO DE SERVICIOS: Moody's Assigns 'B3' Rating to AR$100MM Debt ---------------------------------------------------------------- Moody's Investors Service assigned a B3 global local-currency debt rating to Banco de Servicios y Transacciones S.A. (BST)'s fourth expected issuance of Ar$100 million, which will be due in 21 months, under the Ar$ 500 million multicurrency MTN Program. At the same time, Moody's Latin America assigned A2.ar national scale local currency debt rating to the expected issuance. The outlook for all ratings is negative, following the negative outlook on the sovereign rating. The following ratings were assigned to BST's expected issuance: Ar$100 million senior unsecured debt issuance: B3 Global Local Currency Debt Rating, with negative outlook A2.ar Argentina National Scale Local Currency Debt Rating, with negative outlook RATINGS RATIONALE Moody's explained that the local currency senior unsecured debt rating derives from BST's B3 global local currency deposit rating. Moody's also noted that seniority was taken into consideration in the assignment of the debt ratings. Banco de Servicios y Transacciones is headquartered in Buenos Aires, with assets of Ar$1.980 million and equity of Ar$ 143 million as of September, 2012. The principal methodology used in this rating was Moody's Consolidated Global Bank Rating Methodology published in June 2012. =========== B R A Z I L =========== BANCO DO BRASIL: S&P Rates Perpetual Subordinated Securities 'BB' ----------------------------------------------------------------- Standard & Poor's Ratings Services has assigned its 'BB' rating to Banco do Brasil S.A.'s (BdB) perpetual, unsecured, junior subordinated, non-cumulative hybrid equity instruments, callable capital securities. The proposed capital securities will be eligible for designation as minimal equity content under our classification of hybrid equity instruments because these securities contain only nonviability contingency clauses and S&P do not expect these securities to absorb losses. The proposed securities will be perpetual and junior subordinated. The securities will also contain mechanisms for potential noncumulative coupon deductions that the bank can exercise. According to the Brazilian central bank's capital requirements, mandatory cupon or principal deductions should only occur if the bank is technically insolvent. The capital securities will be callable on the 11th anniversary from issuance and on every coupon payment thereafter. There is no provision for a step-up in the interest-rate margin at any time, or any other explicit incentive for BdB to call the securities. The rating on these securities is three notches lower than the bank's issuer credit rating, reflecting a one-notch deduction for subordination risk, one-notch deduction for partial or untimely payment risk, and another deduction for principal write-down risk. Since the securities carry provisions that allow the bank to amend its terms and conditions at any time upon the implementation of the Basel III global regulatory standards in Brazil, S&P may review the rating if such amendments either exceed or fall short of subordination, coupon deductions, and principal loss provisions incorporated in this rating. S&P's ratings on BdB (foreign currency BBB/Stable/A-2; local currency BBB/Stable/--) reflects the bank's "very strong" business position, "moderate" capital and earnings, "adequate" risk position, and "adequate" funding and liquidity (as our criteria define the term), compared with other banks in Brazil. S&P considers BdB as a government-related entity (GRE), since the Federative Republic of Brazil (foreign currency BBB/Stable/A-2; local currency A-/Stable/A-2) is BdB's majority owner. S&P believes there is a "very high" likelihood that the government would provide timely and sufficient extraordinary support to BdB if the bank experiences financial distress. RATINGS LIST Banco do Brasil S.A. Issuer Credit Rating Foreign Currency BBB/Stable/A-2 Local Currency BBB/Stable/-- New Rating Perpetual Junior Subordinated BB GAFISA SA: Moody's Says Debt Renegotiation Credit Positive ---------------------------------------------------------- Moody's America Latina stated on Jan. 24, Gafisa's debt renegotiation is credit positive for the issuer. Gafisa S.A. (CFR: Ba3/ A3.br, negative) announced on January 9, 2013, it renegotiated the terms of the 7th debentures issuance (BRL600 million senior secured debt: Ba2/A1.br, negative) extending its tenor by 36 months in exchange for an interest rate increase of 15 basis points. Given the modest borrowing cost increase vis-a-vis the liquidity profile improvement, Moody's sees the renegotiation as credit positive for the company. However, Moody's does not expect an immediate impact on ratings since 24% of Gafisa's total adjusted debt is still due in the short term and Moody's does not expect material improvements on key credit metrics before 2013 year-end. Headquartered in Sao Paulo, Brazil and founded in 1954, Gafisa is one of the largest fully integrated homebuilders in Brazil, and also one of the most diversified in terms of product offering to different income levels. During the last twelve months ended September 2012, Gafisa had net revenues of BRL3.4 billion (USD1.7 billion). RB CAPITAL: Moody's Says Amendments No Impact on 'Ba3' Rating ------------------------------------------------------------- After analysis of the upcoming amendment to the first issuance of the 59th Series of real estate certificates (CRI) issued by RB Capital Securitizadora S.A. (RB Capital or the issuer), Moody's Am‚rica Latina announced that the amendment, in and of itself and at this time, will not result in the downgrade or withdrawal of its A2.br (Brazilian National Scale) and Ba3 (Global Scale, Local Currency) ratings currently assigned to the certificates. The 59th Series of certificates issued by RB Capital is backed by current and future tenancy agreements and is collateralized by the real estate assets by means of a fiduciary assignment ("alienacao fiduci ria de imoveis") and a guarantee issued by the sponsor of the transaction, BR Properties S.A. Originally the real estate assets collateralizing the CRIs were three commercial properties (office buildings). Under the proposed amendments, one of the three commercial properties pledged to the issuer under a fiduciary regime, together with its related tenancy payments, are released from the pledge. In addition, the guaranteed monthly cash flows from the two remaining properties, which continue to be fully guaranteed by BR Properties, are increased so they are sufficient to make payments under the CRIs. The ratings of the certificates are based mainly on: (1) the structure of the transaction, which fully matches payments due under the tenancy agreements guaranteed by BR Properties to payments due under the rated certificates; and (2) the ability and willingness of BR Properties, which has a senior unsecured debt rating of Ba3 (Global Scale, Foreign Currency), to guarantee payments under the tenancy agreements. The A2.br / Ba3 ratings assigned to the CRIs continue to be based on BR Properties' ability to make payments under the guarantee. This is commensurate with BR Properties' Ba3 senior unsecured rating. Any future changes to the senior unsecured rating of BR Properties may lead to a change in the ratings assigned to the certificates. The principal methodology used in assigning the ratings to the CRI was the Global Rating Methodology for REITs and Other Commercial Property Firms published in July 2010. ========================== C A Y M A N I S L A N D S ========================== 3L FUND: Shareholders Receive Wind-Up Report -------------------------------------------- On Nov. 30, 2012, the shareholders of 3L Fund received the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Matthew Wright Tamara Corbin Rawlinson and Hunter Limited PO Box 897 Windward 1, Regatta Office Park, West Bay Road Grand Cayman KY1-1103 Cayman Islands Rawlinson and Hunter Limited PO Box 897 Windward 1, Regatta Office Park, West Bay Road Grand Cayman KY1-1103 Cayman Islands 3L MASTER: Shareholders Receive Wind-Up Report ---------------------------------------------- On Nov. 30, 2012, the shareholders of 3L Master Fund received the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Matthew Wright Tamara Corbin Rawlinson and Hunter Limited PO Box 897 Windward 1, Regatta Office Park, West Bay Road Grand Cayman KY1-1103 Cayman Islands Rawlinson and Hunter Limited PO Box 897 Windward 1, Regatta Office Park, West Bay Road Grand Cayman KY1-1103 Cayman Islands ARES IV: Shareholders Receive Wind-Up Report -------------------------------------------- On Dec. 21, 2012, the shareholders of Ares IV CLO Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands ARROW FUND: Shareholder Receives Wind-Up Report ----------------------------------------------- On Dec. 18, 2012, the shareholder of The Arrow Fund (111919) received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Celina Lin Telephone: 852 2845 0956 Facsimile: 852 2845 0931 BCI HOLDINGS: Shareholders Receive Wind-Up Report ------------------------------------------------- On Dec. 21, 2012, the shareholders of BCI Holdings Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. 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 CABLE (DFS 2002): Shareholders Receive Wind-Up Report ----------------------------------------------------- On Dec. 21, 2012, the shareholders of Cable (DFS 2002) Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands CHYPS CBO 1999-1: Shareholders Receive Wind-Up Report ----------------------------------------------------- On Dec. 21, 2012, the shareholders of CHYPS CBO 1999-1 Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands DRAXIS ENERGY: Shareholders Receive Wind-Up Report -------------------------------------------------- On Dec. 19, 2012, the shareholders of Draxis Energy Master Fund Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Bernadette Bailey-Lewis Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands DRAXIS ENERGY FUND: Shareholders Receive Wind-Up Report ------------------------------------------------------- On Dec. 19, 2012, the shareholders of Draxis Energy Fund Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Bernadette Bailey-Lewis Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands DRAXIS ENERGY INTERMEDIATE: Shareholders Receive Wind-Up Report --------------------------------------------------------------- On Dec. 19, 2012, the shareholders of Draxis Energy Intermediate Fund Ltd. received the liquidator's report on the company's wind- up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Bernadette Bailey-Lewis Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands KNIGHT FUNDING: Shareholders Receive Wind-Up Report --------------------------------------------------- On Dec. 21, 2012, the shareholders of Knight Funding Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands MILLGATE INTERNATIONAL: Shareholders Receive Wind-Up Report ----------------------------------------------------------- On Jan. 16, 2013, the shareholders of Millgate International Trading Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands NMT HOLDINGS: Shareholders Receive Wind-Up Report ------------------------------------------------- On Dec. 21, 2012, the shareholders of NMT Holdings Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. 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 NS INVESTMENTS XIV: Shareholder Receives Wind-Up Report ------------------------------------------------------- On Dec. 21, 2012, the sole shareholder of NS Investments XIV, Inc. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust SPV (Cayman) Limited 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 PIXCEL LTD: Shareholder Receives Wind-Up Report ----------------------------------------------- On Dec. 21, 2012, the sole shareholder of Pixcel Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust SPV (Cayman) Limited 87 Mary Street, George Town Grand Cayman KY1-9002 Cayman Islands c/o Jennifer Chailler Telephone: (345) 814 6847 RELIANCE EUROPEAN: Shareholders Receive Wind-Up Report ------------------------------------------------------ On Dec. 19, 2012, the shareholders of Reliance European Fund SPC received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Bernadette Bailey-Lewis Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands SORIN CL MASTER: Shareholder Receives Wind-Up Report ---------------------------------------------------- On Dec. 11, 2012, the sole shareholder of Sorin CL Master Fund, Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Susan Lock Telephone: (345) 815-1889 Facsimile: (345) 949-9877 SORIN CL OFFSHORE: Shareholder Receives Wind-Up Report ------------------------------------------------------ On Dec. 11, 2012, the sole shareholder of Sorin CL Offshore Fund, Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Susan Lock Telephone: (345) 815-1889 Facsimile: (345) 949-9877 TWICKENHAM INSURANCE: Shareholder Receives Wind-Up Report --------------------------------------------------------- On Jan. 7, 2013, the sole shareholder of Twickenham Insurance Company received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: RSM Cayman Ltd. Harbour Place, 2nd Floor George Town, PO Box 10311 Grand Cayman KY1-1003 Cayman Islands VALE CAPITAL: Shareholder Receives Wind-Up Report ------------------------------------------------- On Dec. 21, 2012, the sole shareholder of Vale Capital Limited received the liquidator's report on the company's wind-up proceedings and property disposal. 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 =============== C O L O M B I A =============== BANCO DAVIVIENDA: Fitch Affirms 'BB+' Subordinated Debt Rating -------------------------------------------------------------- Fitch Ratings has affirmed Banco Davivienda S.A.'s viability rating (VR) at 'bbb-' and Issuer Default Ratings (IDRs) at 'BBB-'. KEY RATING DRIVERS: Davivienda's ratings reflect the bank's clear long-term strategy, sound asset quality and risk management, well established franchise, consistent performance, ample, diversified funding. Fitch's view of Davivienda's creditworthiness is tempered by the bank's somewhat stretched capital base, moderate efficiency and the execution risk related to its recent acquisitions. Daviviendas's support rating and support rating floor are driven by Fitch's opinion that there is a moderate probability of support from Colombia's central bank, given Davivienda's size and systemic importance. The ability of the central bank to provide support is constrained by the country's financial and fiscal standing; Colombia's sovereign rating is 'BBB-' with a Stable Outlook. SENSITIVITY/RATING DRIVERS Davivienda's VR and IDRs would benefit from a steady, material, and swift restoration of its capital base, a seamless integration of its recently acquired subsidiaries in Central America, as well as from improved efficiency that would underpin its performance, while maintaining reasonable asset quality and sound reserves. Upside potential on these ratings is contingent on improving capital adequacy above pre-acquisition levels, which Fitch believes can only be achieved over the medium term. A disruptive integration of Davivienda's new subsidiaries, a significant decline in its capital ratios - namely a Fitch Core Capital below 6% - or a severe deterioration of asset quality that would pressure the bottom line through increased loan loss provisions, would negatively affect the bank's VR and IDRs. Changes in the support rating and support rating floor are contingent on changes in Colombia's sovereign ratings. Credit Profile Davivienda has shown a proven ability to devise and execute a long-term strategy. Building patiently around its core mortgage business, Davivienda became a universal bank and successfully diversified its target market, revenue sources, funding base, and loan portfolio. This has allowed the bank to gain market share while leaving behind its monoline structure and image. Davivienda cherry-picked its mergers and acquisitions to complement and enhance its business then seamlessly integrated them into a new organization that is strengthened by its parts. In late 2012, the bank closed the acquisition of the former subsidiaries of HSBC in El Salvador, Honduras and Costa Rica. This transaction has affected the bank's capital ratios and profitability but these are expected to revert to pre-acquisition levels within 18-30 months. Owing to its sound risk management policies and mature organization, the bank was able to bring asset quality under control while bolstering reserves under increasingly stringent regulation. Davivienda's asset quality ratios (NPLs: 1.6% at September 2012) compare well to those of its regional peers even though its loan portfolio has a slightly riskier profile. A few years of sustained growth and steady performance as well as a conservative dividend payout policy resulted in a rapid improvement in the size and quality of Davivienda's capital. The burden of its goodwill had also declined and become more manageable but increased again due to the acquisition of HSBC's subsidiaries in Central America. By the same token, capital levels declined to the lower end of similarly rated banks, with Fitch Core Capital declining to the 6%-6.5% range and Fitch Eligible Capital to the 9.0-9.5% range. Fitch's assessment of Davivienda's capital adequacy considers its sound internal capital generation (earnings) and ample loan loss reserves. Fitch expects that sustained profitability and conservative dividend payouts will allow the bank to restore its capital levels closer to pre-acquisition levels (6.5%-7.5% for the FCC and 9.5%-10.5% for the FEC respectively) by the end of 2014 Sound loan growth and resilient margins have resulted in a steady performance that may not be as spectacular as that of some regional high-flyers but remains impressive (ROAA was about 1.96% at Sept. 2012) given the economic background and structural constraints to its retail business. Its heightened market presence allowed Davivienda to widen and deepen its deposit base. At the same time, the bank opened its capital to local investors and actively tapped the local and international securities market. A relatively high cost structure and low non-interest revenues weigh on its efficiency ratios. Efforts are underway to improve this and bolster the bank's performance but gains in this area tend to be slow to come. In the short term, efficiency should improve through stronger revenues rather than nimbler processes or better cross-selling. Davivienda is Colombia's third largest bank by assets with a market share of about 11% at end 2012. It is a universal bank operating across all business segments with a particular strength in the consumer business. The bank is controlled by Sociedades Bolivar, which has interests in the construction and insurance industries in Colombia. Fitch has affirmed Davivienda's ratings as: -- Long-term foreign currency IDR at 'BBB-'; Outlook Stable; -- Long-term local currency IDR at 'BBB-'; Outlook Stable; -- Short-term foreign currency IDR at 'F3'; -- Short-term local currency IDR at 'F3'; -- Viability rating at 'bbb-'; -- Support Rating at '3'; -- Support Rating Floor at 'BB+'; -- Senior unsecured debt at 'BBB-'; -- Subordinated debt at 'BB+'. =========== M E X I C O =========== AEROPUERTOS DOMINICANOS: S&P Assigns 'BB-' Rating to $550MM Notes ----------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' rating on Aeropuertos Dominicanos Siglo XXI S.A's (Aerodom) $550 million seven-year senior secured notes. The rating on Aerodom's notes mirrors the corporate credit rating of Aerodom's parent, Bermuda-based Latin American Airports Holdings Ltd. (LAAH; BB-/Stable/--). LAAH provides an unconditional and irrevocable guarantee of both principal and interest payments. "Our equalization of the rating on the notes with the rating on LAAH reflects our view that the guarantee qualifies for rating substitution treatment," said Standard & Poor's credit analyst Candela Macchi. The rating of LAAH continue to reflect the credit quality of its operating subsidiaries and the company's "fair" business risk profile and "aggressive" financial risk profile. ===================== P U E R T O R I C O ===================== ORIENTAL FINANCIAL: S&P Affirms 'BB+' Counterparty Credit Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'BB+' counterparty credit rating on Puerto Rico-based regional banking company Oriental Financial Group. S&P also affirmed its 'BBB-' counterparty credit rating on its primary banking subsidiary, Oriental Bank. At the same time, it removed the ratings from CreditWatch, where it had placed them with negative implications on June 29, 2012. The outlook is negative. S&P is affirming its ratings on Oriental Financial Group and its primary banking subsidiary, Oriental Bank, following its review of the companies. "We think Oriental's acquisition of BBVA PR in December 2012 has improved Oriental's competitive market position, loan diversification, and funding profile," said Standard & Poor's credit analyst Robert Hansen. "We think Oriental should be able to successfully integrate BBVA PR given management's knowledge of the local market and its experience integrating Eurobank. However, Oriental faces some integration risk, in our view, given the size of BBVA PR." We think operational synergies and eductions in noninterest expenses are possible given that the recently acquired BBVA PR has a similar geographic footprint as Oriental. Recent acquisitions have substantially improved Oriental's competitive market position; diversified its business and loan portfolio, albeit within Puerto Rico; and strengthened its funding profile, in S&P's opinion. Oriental and BBVA PR collectively had about $11 billion in assets, $5.4 billion in loans, and nearly $5.7 billion in customer deposits as of Sept. 30, 2012. Oriental Bank, the main bank subsidiary of Oriental Financial Group, has the second-largest branch network and the third-largest deposit market share in Puerto Rico following the acquisition, according to the company. S&P believes that the banking market will remain highly competitive in Puerto Rico, but it thinks industry consolidation in recent years has somewhat reduced deposit pricing pressures. The outlook is negative. S&P could lower the rating if the bank's loan performance weakens, if integration challenges arise, or if S&P's projections for capital ratios decline substantially. More specifically, S&P could lower the rating if net charge-offs increase materially or if adjusted nonperforming assets, including restructured loans, rise to more than 13% of total loans. S&P is unlikely to raise the rating, given the bank's high loan concentrations in Puerto Rico and S&P's view that asset quality issues will likely persist. =============================== T R I N I D A D & T O B A G O =============================== CL FIN'L: Ex-Boss Duprey Doesn't Want to be Questioned on CLICO --------------------------------------------------------------- Caribbean360.com reports that despite initially confirming that he would attend the ongoing CLICO commission of enquiry, former head of CLICO Lawrence Duprey is now backing out. Trinidad Guardian said Mr. Duprey has written a letter to the commission, which was received by its secretary Judith Gonzalez, to say that he is unwilling to appear before the commission chaired by British QC Sir Anthony Colman to give evidence, according to Caribbean360.com. The report relates that unnamed sources reportedly told the Guardian that when he consulted his legal team, he was advised not to take part in it since the police had begun an official probe into the collapse of Colonial Life Insurance Company (Trinidad) Limited (CLICO) (Trinidad & Tobago). Mr. Duprey also wrote to say he was withdrawing his legal team Andrew Mitchell, QC, and attorney Lionel Luckhoo from the proceedings, the report notes. On November 8, Director of Public Prosecutions Roger Gaspard, announced in a media release that police had started a criminal investigation into the conduct of individuals and corporate entities involved in the collapse of CLICO and related companies, the report recalls. Mr. Gaspard, the report discloses, warned the media "not [to] publish or broadcast anything which might jeopardise, hinder or otherwise prejudice the investigation or any possible proceedings which might result from it." Mr. Gaspard also wrote to Attorney General Anand Ramlogan and Colman over the public hearing of the enquiry, the report relates. Caribbean360.com relays that Mr. Gaspard said if the enquiry went on, it was likely to delay a prosecution and jeopardize the police investigation. Mr. Gaspard's initial letter to Mr. Ramlogan expressed concern over the enquiry but the AG refused to advise the President to suspend it immediately, or at least vary its terms of reference, the report notes. Caribbean360.com discloses that Mr. Colman also refused Gaspard's request, saying it was ultimately up to the Government to decide whether the enquiry should continue in light of a police probe. After Mr. Gaspard's warning, Mr. Colman ruled that Mr. Duprey would not have to respond to requests to attend the hearing on the basis of the police probe and the right to not incriminate himself, the report adds. About CL Financial CL Financial Group Limited is a privately held conglomerate in Trinidad and Tobago. Founded as an insurance company by Cyril Duprey, Colonial Life Insurance Company was expanded into a diversified company by his nephew, Lawrence Duprey. CL Financial is now one of the largest local conglomerates in the region, encompassing over 65 companies in 32 countries worldwide with total assets standing at roughly US$100 billion. * * * As reported in the Troubled Company Reporter-Latin America on August 10, 2009, A.M. Best Co. downgraded the financial strength rating to C (Weak) from B (Fair) and issuer credit rating to "ccc" from "bb" of Colonial Life Insurance Company (Trinidad) Limited (CLICO) (Trinidad & Tobago). The ratings remain under review with negative implications. CLICO is an insurance member company of CL Financial Limited (CL Financial), a diversified holding company based in Trinidad & Tobago. According to a TCR-LA report on Feb. 20, 2009, citing Trinidad and Tobago Express, Tobago President George Maxwell Richards signed bailout bills for CL Financial, giving the government the authority to control the company's unit, Colonial Life Insurance Company, and giving the central bank extensive powers to treat with CL Financial's collapse and the consequent systemic crisis. ========================= T U R K S & T A I C O S ========================= SANDALS RESORTS: To Pay Government US$12 Million ------------------------------------------------ Caribbean360.com reports that special prosecutors in the Turks & Caicos Islands say Sandals Resorts will pay $12 million to the government as part of a probe into corruption. Sandals operates the Beaches resort in Turks and Caicos and it recently purchased the former Veranda resort property as part of an expansion in TCI, according to Caribbean360.com. A statement from Turks and Caicos said the Special Investigation Prosecution Team (SIPT) and the Turks and Caicos Islands government have reached an agreement with Sandals Resorts due "in part to the cooperation of the company with the United States authorities to a degree that has been acknowledged to be both extraordinary and unique and included the early and voluntary release of valuable evidence that has been shared with the SIPT," Caribbean360.com discloses. In 2011, the report recalls that Sandals counsel Dimitri Singh said a former senior Sandals officer was linked to "various unauthorized transactions" and said the Jamaica-based resort company was voluntarily cooperating with international authorities probing former islands officials. Caribbean360.com says that the SIPT said the agreement involves no admission of liability. It said the agreement and the payout relate to the resort company's cooperation with a US investigation and voluntary release of evidence that was shared with the special prosecutor's office in Turk and Caicos, Caribbean360.com notes. Caribbean360.com notes that the SIPT is investigating corruption in the Turks and Caicos; it was formed after a Commission of Inquiry led by Sir Robin Auld in 2009 found evidence of widespread corruption in the Turks and Caicos Islands. That led to the suspension of democratic government in the British Overseas Territory, Caribbean360.com relays. The TCI returned to democratic government with elections in November, the report notes. No other details were provided on the agreement were provided but a former senior Sandals employee has been linked to transactions involving former Turks and Caicos officials currently under investigation, the report says. So far, 13 people, including developers and former Turks and Caicos government ministers, have been indicted on corruption- related charges, Caribbean360.com discloses. Earlier this month, British officials said they were starting extradition proceedings for the island's former premier, Michael Misick, from Brazil where he was arrested in December on an international arrest warrant, the report adds. =============== X X X X X X X X =============== * BOND PRICING: For the Week Jan. 21 to Jan. 25, 2013 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- ARGENT-$DIS 8.28 12/31/2033 USD 59.65 ARGENT-$DIS 8.28 12/31/2033 USD 60.75 ARGENT-$DIS 8.28 12/31/2033 USD 61.63 ARGENT-$DIS 8.28 12/31/2033 USD 61.63 ARGENT-$DIS 8.28 12/31/2033 USD 63.25 ARGENT-PAR 1.18 12/31/2038 ARS 42.04 ARGENT-EURDIS 7.82 12/31/2033 EUR 45 ARGENT-EURDIS 7.82 12/31/2033 EUR 60 ARGENT-EURDIS 7.82 12/31/2033 EUR 60.5 ARGENT-JPYDIS 4.33 12/31/2033 JPY 35.5 ARGENT-JPYDIS 4.33 12/31/2033 JPY 36 ARGENT-JPYPAR&GDP 0.45 12/31/2038 JPY 8 ARGNT-BOCON PRE9 2 3/15/2014 ARS 50 BANCO MACRO SA 9.75 12/18/2036 USD 72.5 BANCO MACRO SA 9.75 12/18/2036 USD 71.88 BANCO MACRO SA 9.75 12/18/2036 USD 71.88 CAPEX SA 10 3/10/2018 USD 75 CAPEX SA 10 3/10/2018 USD 73.25 CIA LATINO AMER 9.5 12/15/2016 USD 70 EMP DISTRIB NORT 9.75 10/25/2022 USD 46.05 EMP DISTRIB NORT 10.5 10/9/2017 USD 36.85 EMP DISTRIB NORT 9.75 10/25/2022 USD 44.5 METROGAS SA 8.875 12/31/2018 USD 66.75 METROGAS SA 8.875 12/31/2018 USD 66.75 METROGAS SA 8.875 12/31/2018 USD 66.75 METROGAS SA 8.875 12/31/2018 USD 66.75 METROGAS SA 8.875 12/31/2018 USD 67 METROGAS SA 8.875 12/31/2018 USD 69.13 PROV BUENOS AIRE 9.625 4/18/2028 USD 65.87 PROV BUENOS AIRE 9.625 4/18/2028 USD 65.88 PROV BUENOS AIRE 9.375 9/14/2018 USD 70.91 PROV BUENOS AIRE 9.375 9/14/2018 USD 70.7 PROV BUENOS AIRE 10.875 1/26/2021 USD 72.7 PROV BUENOS AIRE 10.875 1/26/2021 USD 72.31 PROV DE FORMOSA 5 2/27/2022 USD 62.63 PROV DE MENDOZA 5.5 9/4/2018 USD 73.78 PROV DEL CHACO 4 12/4/2026 USD 27.75 PROV DEL CHACO 4 11/4/2023 USD 55.13 TRANSENER 9.75 8/15/2021 USD 39 TRANSENER 9.75 8/15/2021 USD 38.75 TRANSENER 8.875 12/15/2016 USD 41.01 BRAZIL ------ CESP 9.75 1/15/2015 BRL 74.7 CAYMAN ISLAND ------------- BANCO BPI (CI) 4.15 11/14/2035 EUR 59.5 BANCO BPI (CI) 4.15 11/14/2035 EUR 65.13 BCP FINANCE CO 4.239 EUR 42 BCP FINANCE CO 5.543 EUR 43 BES FINANCE LTD 4.5 EUR 64.83 BES FINANCE LTD 5.58 EUR 67.5 CAM GLOBAL FIN 6.08 12/22/2030 EUR 61 CHINA FORESTRY 10.25 11/17/2015 USD 53 CHINA FORESTRY 10.25 11/17/2015 USD 53.13 CHINA SUNERGY 4.75 6/15/2013 USD 57.87 ERB HELLAS CAYMA 9 3/8/2019 EUR 50.75 ESFG INTERNATION 5.753 EUR 53.19 GOL FINANCE 8.75 USD 77.25 GOL FINANCE 8.75 USD 74.88 JINKOSOLAR HOLD 4 5/15/2016 USD 60 LUPATECH FINANCE 9.875 USD 45 LUPATECH FINANCE 9.875 USD 43.5 PUBMASTER FIN 6.962 6/30/2028 GBP 62.76 PUBMASTER FIN 8.44 6/30/2025 GBP 64 SUNTECH POWER 3 3/15/2013 USD 49.5 SUNTECH POWER 3 3/15/2013 USD 50.4 BRAZIL ------ CESP 9.75 1/15/2015 BRL 74.7 CHILE ----- ALMENDRAL TEL 3.5 12/15/2014 CLP 42.34 CHILE 3 1/1/2042 CLP 65.9 CHILE 3 1/1/2042 CLP 65.9 CHILE 3 1/1/2040 CLP 67.41 CHILE 3 1/1/2040 CLP 67.41 COLBUN SA 3.2 5/1/2013 CLP 24.86 PUERTO RICO ----------- PUERTO RICO CONS 6.2 5/1/2017 USD 58.5 PUERTO RICO CONS 6.5 4/1/2016 USD 69.48 VENEZUELA --------- PETROLEOS DE VEN 5.5 4/12/2037 USD 69 PETROLEOS DE VEN 5.375 4/12/2027 USD 72.25 *********** 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., Washington, D.C., 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 2013. 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$775 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 A. Chapman at 215-945-7000 or Nina Novak at 202-241-8200. * * * End of Transmission * * *