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/raid1/www/Hosts/bankrupt/TCRLA_Public/130228.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, February 28, 2013, Vol. 14, No. 42 Headlines A R G E N T I N A * ARGENTINA: Won't Obey Orders to Pay $1.3BB of Defaulted Debt B R A Z I L * BRAZIL: Moody's Completes Review of Leasing Cos.' Debt Ratings C A Y M A N I S L A N D S BAM OPPORTUNITY: Shareholders Receive Wind-Up Report CG INTERNATIONAL: Shareholders Receive Wind-Up Report CMT CHINAVALUE: Shareholders Receive Wind-Up Report ENTERASPEN LIMITED: Shareholder Receives Wind-Up Report EPIC: Shareholder Receives Wind-Up Report GMI GLOBAL: Shareholders Receive Wind-Up Report J-MEZZ INVESTMENTS: Shareholder Receives Wind-Up Report LOMBARD/APIC MANAGEMENT: Shareholders Receive Wind-Up Report LONGHILL HOLDING: Shareholders Receive Wind-Up Report OAK HILL: Shareholders Receive Wind-Up Report PISCES INC: Shareholders Receive Wind-Up Report PRIDE INTERNATIONAL: Shareholder Receives Wind-Up Report RW SERVICES: Shareholders Receive Wind-Up Report SANDICO CORPORATION: Shareholders Receive Wind-Up Report SB FINANCE: Shareholders Receive Wind-Up Report SILKROAD CHINA: Shareholders Receive Wind-Up Report SSF III EBISU: Shareholder Receives Wind-Up Report SSF III INVESTMENT: Shareholder Receives Wind-Up Report SSF III YALE: Shareholder Receives Wind-Up Report TRF LIQUIDATING: Shareholder Receives Wind-Up Report H O N D U R A S * Moody's Affirms B2 Rating on Honduras' Government Bonds J A M A I C A * JAMAICA: BOJ Expects Sliding Dollar to Affect Prices X X X X X X X X * LATAM: Moody's Cuts Ratings on Subordinated Debt From 5 Banks * Upcoming Meetings, Conferences and Seminars - - - - - ================= A R G E N T I N A ================= * ARGENTINA: Won't Obey Orders to Pay $1.3BB of Defaulted Debt -------------------------------------------------------------- Bob Van Voris and Christie Smythe at Bloomberg News reports that Argentina's claim that a U.S. court can't tie its obligation to make defaulted bondholders whole to payments on restructured debt faced skepticism from judges as a lawyer for the country said it won't obey orders to pay as much as $1.3 billion of defaulted sovereign debt. Bloomberg News says Jonathan Blackman, the attorney for the South American nation, said that Argentina would default on its restructured debt if it's forced by a three-judge appeals panel in New York to pay holders of the defaulted debt. "So the answer is you will not obey any order but the one you propose?" U.S. Circuit Judge Reena Raggi asked Mr. Blackman during more than two hours of arguments, according the report. "We would not voluntarily obey such an order," Mr. Blackman said. Hernan Lorenzino, Argentina's minister of economy, and Vice President Amado Boudou sat at the counsel table as the lawyer addressed the panel, notes Bloomberg News. Mr. Blackman claimed that a lower-court order obliging it to pay the defaulted bonds whenever it makes payments on restructured debt violates its sovereignty, threatens to trigger a new financial crisis and would quadruple the number of Argentine bond cases in New York federal court, rather than resolving them. "If that's the confrontation the court seeks with the injunctions, that is the court's decision," Mr. Blackman said. "We're representing a government and governments will not be told to do things that fundamentally violate their principles," he said, notes the report. Bloomberg News says a range of third parties with a stake in the outcome -- including the holders of Argentina's restructured debt, international payment intermediaries and banks, and the trustee for the restructured bonds -- claim the lower court's actions also threaten their interests. Holders of defaulted bonds, led by Elliott Management Corp.'s NML Capital Ltd., run by billionaire hedge-fund manager Paul Singer, and Aurelius Capital Management, have won U.S. court judgments recognizing their right to be paid and are asking the appeals court to uphold the lower court to give them the ability to collect the $1.3 billion they say they're owed. Argentina says a ruling in the creditors' favor would open it up to more than $43 billion in additional claims it can't pay. The country defaulted on a record $95 billion in debt in 2001. Holders of about 91 percent of the bonds agreed to take new exchange bonds in 2005 and 2010, at a deep discount, reports Bloomberg News. The report says the appeals panel heard arguments from both sides, as well as from lawyers for the Exchange Bondholder's Group, which represents holders of the restructured debt, and for Bank of New York Mellon Corp., the indenture trustee for the restructured bonds. The court may not rule for weeks or months. Judges expressed doubt about arguments by BNY Mellon that it can't be subject to U.S. District Judge Thomas Griesa's order barring third parties from helping Argentina pay the holders of restructured bonds without also paying the defaulted bondholders. Blocking BNY Mellon is key to the defaulted bondholders' efforts to halt payments on the restructured bonds as a means of forcing payment to them, notes the Bloomberg report. "Argentina cannot violate this injunction without participation of the Bank of New York," Theodore Olson, representing NML Capital, told the judges. Holders of the defaulted debt are seeking "what they are owed," he said, reports Bloomberg News. The holdout creditors, says Bloomberg News, are seeking to uphold rulings by Judge Griesa that require Argentina to pay them the full amount they're owed whenever it makes a required payment to the holders of the exchange bonds. The Exchange Bondholder Group claims the ruling improperly threatens their investment. "We're innocent parties," attorney David Boies argued for the Exchange Bondholder Group, note the report. "I represent people who did what they thought was right. All I'm saying is what they did shouldn't count against them." Judge Griesa's order shouldn't apply to restructured debt holders, Mr. Boies told the panel, according to Bloomberg News. The court can't hold them hostage, he said. "If you allow Judge Griesa's injunction to exist unchanged, everybody in this courtroom knows what's going to happen," Mr. Boies argued. "Argentina is going to default." "I hope that the common sense will be enforced and that means that a bondholder can't get something different than another one," Mr. Lorenzino said in an interview with Telesur after the hearing, says the Bloomberg News report. Argentina won't violate its own law on debt payments, Mr. Boudou said in an interview with C5N, note the report. Bloomberg News says Argentina's government officials have characterized holders of the defaulted debt as "vultures," and the country's legislature in 2005 passed a law barring payment of the defaulted bonds. Argentina has spent the past decade opposing claims brought in U.S. courts by holders of the defaulted bonds. Many holders of the defaulted Argentina bonds have won U.S. court rulings requiring the country to pay them. Despite the favorable rulings, courts have generally prevented the holders of defaulted debt from moving to seize the country's assets, citing the Foreign Sovereign Immunities Act, which limits the ability of plaintiffs to sue foreign countries in U.S. courts, note the report. Bloomberg News notes that the appeals court has already affirmed Judge Griesa's ruling that an equal-treatment, or pari passu, clause in the original bond agreements prevents Argentina from treating defaulted bondholders less favorably than exchange bondholders. The appellate court upheld an injunction issued by Judge Griesa that barred Argentina from paying the exchange bondholders without also paying holders of defaulted debt. Judge Griesa said the order applied to BNY Mellon and other third parties and said Argentina must pay the full $1.3 billion when it makes its next scheduled payment on the restructured bonds, reports Bloomberg News. Mr. Olson urged the judges not to let Argentina defy the authority of the courts. "That is telling this court and all the courts in the United States that the laws of the United States mean nothing," Bloomberg News quoted him as saying. The lower court case is NML Capital Ltd. v. Republic of Argentina, 08-06978, U.S. District Court, Southern District of New York (Manhattan). The appeal is NML Capital Ltd. v. Republic of Argentina, 12-00105, U.S. Court of Appeals for the Second Circuit (New York). =========== B R A Z I L =========== * BRAZIL: Moody's Completes Review of Leasing Cos.' Debt Ratings ---------------------------------------------------------------- Moody's America Latina downgraded the long term global local currency subordinated debt ratings assigned to outstanding subordinated debentures issued by BFB Leasing S.A. Arrendamento Mercantil, Dibens Leasing S.A. Arrendamento Mercantil, and Itaubank Leasing S.A. Arrendamento Mercantil, concluding the review initiated on these ratings on November 27, 2012. Moody's has removed systemic support from the rating of these leasing companies' subordinated debt instruments, placing them one notch below the adjusted baseline credit assessment of their parent Itau Unibanco S.A.. The outlook on these ratings has been changed to positive in line with the positive outlook on these issuers' standalone unsupported ratings. The Aaa.br Brazilian national scale ratings assigned to these debt issuances remained unchanged. The following subordinated debt and MTN ratings were downgraded: BFB Leasing S.A. Arrendamento Mercantil: global local currency subordinated debt rating to Baa2 from Baa1; and global local currency subordinated MTN rating to (P)Baa2 from (P)Baa1; positive outlook Dibens Leasing S.A. Arrendamento Mercantil: global local currency subordinated debt rating to Baa2 from Baa1; and global local currency subordinated MTN rating to (P)Baa2 from (P)Baa1; positive outlook Itaubank Leasing S.A. Arrendamento Mercantil: global local currency subordinated debt rating to Baa2 from Baa1; and global local currency subordinated MTN rating to (P)Baa2 from (P)Baa1; positive outlook Ratings Rationale: In notching the subordinated debt ratings of these leasing companies from the Itau Unibanco's adjusted baseline credit assessment of baa1, Moody's noted the global trends towards imposing losses on junior creditors in the context of future bank resolutions, which reduces the predictability of systemic support being provided to subordinated debt holders. The removal of systemic support for subordinated debt is consistent with recent actions Moody's has taken elsewhere, including Colombia, Canada, and several European countries, reflecting Moody's views that there is an increased likelihood that subordinated debt holders would be subject to burden sharing in the event support were required. Moody's notes that according to Law Decree 2321/87, the Brazilian Central Bank has full discretion to determine resolution of Brazilian banks in case of systemic crisis in order to preserve the stability and solvency of the financial system. In addition, the Brazilian banking regulators have legal ability to impose losses on any and all liabilities, including all hybrid and subordinated debt instruments, in the event of intervention of a financial institution as per the existing Resolutions 3444/07 and 3490/07. The outlook on these global local currency subordinated debt ratings is now positive, in line with the positive outlook on these entities' standalone ratings. Itau Unibanco's Baseline Credit Assessment The baseline credit assessment incorporates the intrinsic financial strength of Itau Unibanco S.A., excluding any assessment of systemic or parental support. Adjusted baseline credit assessments incorporate Moody's assessment of the probability of parental support. Nesse caso, the baseline credit assessment equals the adjusted baseline credit assessment because Itau Unibanco does not benefit from parental support. The principal methodology used in this rating was Moody's Consolidated Global Bank Rating Methodology published in June 2012. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. Last Rating Actions The last rating action on BFB Leasing S.A. Arrendamento Mercantil was on November 27, 2012, when Moody's placed on review for downgrade its foreign currency subordinated debt rating, in the context of a global reassessment towards imposing losses on junior creditors in future bank resolutions. The last rating action on Dibens Leasing S.A. Arrendamento Mercantil was on November 27, 2012, when Moody's placed on review for downgrade its foreign currency subordinated debt rating, in the context of a global reassessment towards imposing losses on junior creditors in future bank resolutions. The last rating action on ItauBank Leasing S.A. Arrendamento Mercantil was on November 27, 2012, when Moody's placed on review for downgrade its foreign currency subordinated debt rating, in the context of a global reassessment towards imposing losses on junior creditors in future bank resolutions. ========================== C A Y M A N I S L A N D S ========================== BAM OPPORTUNITY: Shareholders Receive Wind-Up Report ---------------------------------------------------- On Jan. 18, 2013, the shareholders of Bam Opportunity Offshore Fund SPV, 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 CG INTERNATIONAL: Shareholders Receive Wind-Up Report ----------------------------------------------------- On Jan. 22, 2013, the shareholders of CG International Holdings Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Energy Sky Limited 20th Floor, East Point Centre 555 Hennessy Road Hong Kong Telephone: (582) 2833-8338 Facsimile: (345) 949-8613 CMT CHINAVALUE: Shareholders Receive Wind-Up Report --------------------------------------------------- On Jan. 18, 2013, the shareholders of CMT Chinavalue Capital Partners 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 ENTERASPEN LIMITED: Shareholder Receives Wind-Up Report ------------------------------------------------------- The shareholder of Enteraspen Limited received on Dec. 28, 2012, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Eagle Holdings Ltd. c/o Barclays Private Bank & Trust (Cayman) Limited FirstCaribbean House, 4th Floor P.O. Box 487 Grand Cayman KY1-1106 Cayman Islands EPIC: Shareholder Receives Wind-Up Report ----------------------------------------- On Jan. 18, 2013, the shareholder of Epic 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 GMI GLOBAL: Shareholders Receive Wind-Up Report ----------------------------------------------- On Jan. 10, 2013, the shareholders of GMI Global Funds Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Glenn Chin-Yuen Chao c/o Alan G. de Saram Telephone: +1 (345) 949-4544 Facsimile: +1 (345) 947-7073 Charles Adams Ritchie & Duckworth Zephyr House, 122 Mary Street PO Box 709 Grand Cayman KY1-1107 Cayman Islands J-MEZZ INVESTMENTS: Shareholder Receives Wind-Up Report ------------------------------------------------------- On Jan. 8, 2013, the sole shareholder of J-Mezz Investments GP, Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Madeleine Welham Telephone: (345) 815-1750 Facsimile: (345) 949-9877 LOMBARD/APIC MANAGEMENT: Shareholders Receive Wind-Up Report ------------------------------------------------------------ On Jan. 18, 2013, the shareholders of Lombard/Apic Management LDC 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 LONGHILL HOLDING: Shareholders Receive Wind-Up Report ----------------------------------------------------- On Jan. 18, 2013, the shareholders of Longhill Holding Company II, 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 OAK HILL: Shareholders Receive Wind-Up Report --------------------------------------------- On Jan. 18, 2013, the shareholders of Oak Hill Securities Fund II (Offshore II), LDC 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 PISCES INC: Shareholders Receive Wind-Up Report ----------------------------------------------- On Jan. 10, 2013, the shareholders of Pisces Inc. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: UBS Nominees Ltd. c/o Stephen Nelson Telephone: 949-4544 Facsimile: 949-7073 Charles Adams Ritchie & Duckworth Zephyr House, 122 Mary Street Grand Cayman KY1-1107 Cayman Islands PRIDE INTERNATIONAL: Shareholder Receives Wind-Up Report -------------------------------------------------------- On Jan. 18, 2013, the shareholder of Pride International Fund 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 RW SERVICES: Shareholders Receive Wind-Up Report ------------------------------------------------ On Jan. 7, 2013, the shareholders of RW Services Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stuart Sybersma c/o Brad Kirby Deloitte & Touche Citrus Grove Building, 4th Floor Goring Avenue, George Town KY1-1109 Cayman Islands Telephone: +1 (345) 814-3471 SANDICO CORPORATION: Shareholders Receive Wind-Up Report -------------------------------------------------------- On Jan. 10, 2013, the shareholders of Sandico Corporation received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: UBS Nominees Ltd. c/o Stephen Nelson Telephone: 949-4544 Facsimile: 949-7073 Charles Adams Ritchie & Duckworth Zephyr House, 122 Mary Street Grand Cayman KY1-1107 Cayman Islands SB FINANCE: Shareholders Receive Wind-Up Report ----------------------------------------------- On Jan. 24, 2013, the shareholders of SB Finance CI-05-WF2 received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jagjit Toor-Comins c/o BNP Paribas Bank & Trust Cayman Limited PO Box 10632 Royal Bank House, 3rd Floor 24 Shedden Road, George Town Grand Cayman KY1-1006 Cayman Islands SILKROAD CHINA: Shareholders Receive Wind-Up Report --------------------------------------------------- On Jan. 10, 2013, the shareholders of Silkroad China Master Fund received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands SSF III EBISU: Shareholder Receives Wind-Up Report -------------------------------------------------- On Jan. 8, 2013, the sole shareholder of SSF III Ebisu Preferred Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Madeleine Welham Telephone: (345) 815-1750 Facsimile: (345) 949-9877 SSF III INVESTMENT: Shareholder Receives Wind-Up Report ------------------------------------------------------- On Jan. 8, 2013, the sole shareholder of SSF III Investment Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Madeleine Welham Telephone: (345) 815-1750 Facsimile: (345) 949-9877 SSF III YALE: Shareholder Receives Wind-Up Report -------------------------------------------------- On Jan. 8, 2013, the sole shareholder of SSF III Yale Holding Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Madeleine Welham Telephone: (345) 815-1750 Facsimile: (345) 949-9877 TRF LIQUIDATING: Shareholder Receives Wind-Up Report ---------------------------------------------------- On Jan. 18, 2013, the shareholders of TRF Liquidating SPV 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 =============== H O N D U R A S =============== * Moody's Affirms B2 Rating on Honduras' Government Bonds --------------------------------------------------------- Moody's Investors Service changed Honduras' outlook to negative from stable and affirmed the B2 local and foreign currency government bond ratings. The negative outlook reflects Moody's concerns about (1) the government's fiscal deterioration in 2012 and the low likelihood of significant fiscal consolidation in 2013, given that it is an election year, and (2) a deterioration in the economy's external finances, including a widening current account deficit, which remains only partially covered by FDI. Ratings Rationale: The government's estimate of the 2012 budget deficit is around 6% of GDP, well above the prior year's 4.6% and the 3% median deficit among countries in the 'B' rating category. Fiscal slippage took place subsequent to the completion of an IMF program in March 2012, at which time the government lost access to budgetary support from multilaterals, although bilateral budget support continues. Among the reasons for the fiscal slippage are (i) spending related to primary elections, (ii) support for loss- making state-owned enterprises, and (iii) additional spending on conditional cash transfers. The government is about to begin negotiations related to a new IMF agreement, but Moody's view is that the government is unlikely to reach an agreement with the IMF this year, due to upcoming presidential and legislative elections in November 2013. The government debt stock is moderate at 35% of GDP, but it is on an upward trajectory. Temporary loss of access to multilateral budget support has led to increased government reliance upon the domestic market for funding, resulting in higher financing costs. The government's overall cost of funding has increased, with interest payments amounting to approximately 10% of government revenues last year, compared to roughly 3% in 2008. Due to tightening domestic liquidity conditions, the government has also borrowed from the central bank and run up arrears with domestic service providers. Authorities have conveyed their intention to implement fiscal consolidation, beginning with a full review of all tax exemptions that began in January 2013. The government is also taking measures to enhance the oversight of transfers to municipalities and improve tax collection efficiency. Moody's view is that it will be difficult for the government to improve fiscal oversight markedly and implement significant fiscal consolidation this year, due to elections. The negative outlook also captures the steady deterioration in the balance of payments. The current account deficit amounted to 10% of GDP in 2012, compared to a 6% average from 2009-11, and was only partially covered by FDI. While international reserves declined toward the end of last year, they have since stabilized. Moody's projects a current account deficit on the order of 11% of GDP in 2013, with risks to the downside, as coffee, Honduras' largest export product at 18% of total exports, will be negatively impacted by the rust leaf disease outbreak affecting Central America. Consideration of a stable outlook would require clear evidence of a return to a path of fiscal consolidation, as well as material improvement in the external accounts. Alternatively, the rating could be downgraded in the event of a continued and marked deterioration of fiscal and/or external finances. As part of this rating action, the local currency bond and deposit ceilings were lowered to Ba3 from A3. Honduras' foreign currency bond and deposit ceilings remained unchanged at Ba3 and B3, respectively. The principal methodology used in this rating was The Sovereign Bond Rating Methodology published in September 2008. ============= J A M A I C A ============= * JAMAICA: BOJ Expects Sliding Dollar to Affect Prices ------------------------------------------------------ RJR News reports that the Bank of Jamaica is predicting that price movements this quarter will be influenced by the sliding dollar. The central bank said it expected to see inflation this quarter in a range of 2 to 3%, according to RJR News. RJR News notes that the BOJ did not say how much of the inflation will be due to exchange rate movements, but it has already stated that for every 1% depreciation in the currency, inflation goes up by half a percent. But despite this, the central bank said it was expecting some relief in the tight foreign exchange market, RJR News says. RJR News discloses that the relief is predicated on reduced demand, associated with a seasonal decline in spending on imports. Additionally, the BOJ is predicting that the country could also see a moderate increase in the supply of foreign currency, due to seasonally higher earnings from tourism and major traditional exports, RJR News notes. RJR News adds that more foreign currency inflows are expected, as well from an increase in net private capital inflows, as investor confidence is restored with an impending IMF deal. =============== X X X X X X X X =============== * LATAM: Moody's Cuts Ratings on Subordinated Debt From 5 Banks --------------------------------------------------------------- Moody's Investors Service downgraded the ratings assigned to subordinated debt issued by Banco de Chile, Banco Santander Chile, Banco de Credito del Peru, Banco Internacional del Peru, and Industrial Subordinated Trust, concluding the review for downgrade initiated on these ratings on November 27, 2012 (June 27, 2012 in the case of Santander Chile). Moody's has removed systemic support from these banks' subordinated debt instruments, placing them one notch below their respective adjusted baseline credit assessments (BCAs) in the case of subordinated debt and three notches below the adjusted BCA for junior subordinated debt, respectively. All other ratings and outlooks for these issuers remain unaffected by these rating actions. List Of Affected Ratings The following subordinated debt ratings were downgraded: Banco de Chile: Foreign currency subordinated debt rating to A2 from A1, outlook stable Banco Santander Chile: Foreign currency subordinated debt rating to A3 from A1, outlook negative Banco de Credito del Peru: Local and foreign currency subordinated debt ratings to Ba1 from Baa3, outlook stable Banco Internacional del Peru -- Interbank: Foreign currency junior subordinated debt rating to B1(hyb) from Ba3(hyb), outlook stable Industrial Subordinated Trust, guaranteed by Banco Industrial S.A.: Foreign currency subordinated debt rating to Ba3 from Ba2, outlook stable Ratings Rationale: In notching the subordinated debt ratings from the adjusted baseline credit assessments, Moody's noted the global trend towards imposing losses on junior creditors in the context of future bank resolutions, which reduces the predictability of systemic support being provided to subordinated debt holders. The removal of systemic support for subordinate debt is consistent with recent actions Moody's has taken elsewhere, including Colombia, Canada, and several European countries, reflecting Moody's view that there is an increased likelihood that subordinated debt holders would be subject to burden sharing if support were required. Moody's notes that Chilean banking regulators have the legal ability to impose losses on subordinated debt holders under the General Banking Law that allows a financial entity under distress to present a restructuring plan to bondholders, that once agreed, would entail a conversion to shares. In the case of Peru, banking regulators have the specific legal ability to impose losses on subordinated debt holders of a financial entity seeking restructuring of debts or under intervention per the Peruvian Financial System Law. In Guatemala, banking regulators have the legal ability to impose losses on any liabilities of an intervened financial entity as per Guatemala's Banking Law. The outlook on all affected subordinated and junior subordinated debt ratings is now stable, with the exception of the negative outlook on Santander Chile's subordinated debt rating. The negative outlook on Santander Chile's subordinated debt rating reflects the negative outlook on the bank's standalone a2 baseline credit assessment, which in turn, reflects the current negative outlook on the standalone ratings of its parent, Banco Santander S.A. Baseline Credit Assessments: Baseline credit assessments incorporate the intrinsic financial strength of banks, excluding any assessment of systemic or parental support. Adjusted baseline credit assessments incorporate Moody's assessment of the probability of parental support. In the case of all these banks, the baseline credit assessment equals the adjusted BCA because none of the banks' ratings currently benefit from uplift due to parental support. The following baseline credit assessments/adjusted baseline credit assessments remain unchanged: Banco de Chile: a1/a1 Banco Santander Chile: a2/a2 Banco de Credito del Peru: baa3/baa3 Banco Internacional del Peru -- Interbank: ba1/ba1 Banco Industrial S.A.: ba1/ba1 Last Rating Actions: The last rating action on Banco de Chile was on November 27, 2012, when Moody's placed the A1 subordinated debt rating on review for downgrade in line with its global reassessment of systemic support. The last rating action on Banco Santander Chile was on February 5, 2013, when Moody's assigned a Prime-1 rating to the bank's US commercial paper note program. The last rating action on Banco de Credito del Peru was on November 27, 2012, when Moody's placed the Baa3 subordinated debt ratings on review for downgrade in line with its global reassessment of systemic support. The last rating action on Banco Internacional del Peru was November 27, 2012, when Moody's placed the Ba3(hyb) junior subordinated debt rating on review for downgrade in line with its global reassessment of systemic support. The last rating action on Industrial Subordinated Trust was on November 27, 2012, when Moody's placed the Ba2 subordinated debt rating on review for downgrade in line with its global reassessment of systemic support. The principal methodology used in these ratings was Moody's Consolidated Global Bank Rating Methodology published in June 2012. * Upcoming Meetings, Conferences and Seminars --------------------------------------------- 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., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, 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 * * *