/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130307.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, March 7, 2013, Vol. 14, No. 47 Headlines B R A Z I L REDE ENERGIA: March 11 Perpetual Noteholders' Conference Call Set C A Y M A N I S L A N D S APAC APEMM: Shareholders Receive Wind-Up Report ATTARA MANAGEMENT: Shareholder Receives Wind-Up Report BELLMAN WALTER: Shareholders Receive Wind-Up Report CC HOLDINGS: Shareholder Receives Wind-Up Report EVOLVED ALPHA: Shareholder Receives Wind-Up Report EVOLVED ALPHA EQUITIES: Shareholder Receives Wind-Up Report EVOLVED ALPHA FOX: Shareholder Receives Wind-Up Report MITAKE INTERNATIONAL: Shareholder Receives Wind-Up Report MUSE CORPORATION: Shareholders Receive Wind-Up Report PINOT PACIFIC SA: Shareholders Receive Wind-Up Report PREFERRED INVESTORS: Shareholder Receives Wind-Up Report RED COBRA: Shareholder Receives Wind-Up Report SAB FAMILY: Shareholders Receive Wind-Up Report SEMAPHORE OFFSHORE: Shareholders Receive Wind-Up Report SOGEPA MULTI-STRATEGY: Shareholder Receives Wind-Up Report SOLA SPV II: Shareholder Receives Wind-Up Report TEMPEST PE FUND 1: Shareholder Receives Wind-Up Report TRITON CORPORATION: Shareholders Receive Wind-Up Report J A M A I C A UC RUSAL: Incurs US$55-Million Net Loss in 2012 M E X I C O BANCO INTERACCIONES: Moody's Keeps Ba3 Long Term Sr. Debt Rating BBVA MERCANTIL: Moody's Confirms Ba1 Rating on Subordinated Debt HIPOTECARIA SU CASITA: S&P Cuts Rating on Class A Notes to 'CCC' MBIA MEXICO: S&P Lowers Counterparty Credit Rating to 'CCC' * Moody's Reports on Non-earmarked Transfers for Mexican States V E N E Z U E L A * VENEZUELA: Bonds Decline After Hugo Chavez Dies X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - =========== B R A Z I L =========== REDE ENERGIA: March 11 Perpetual Noteholders' Conference Call Set ----------------------------------------------------------------- Several holders of the Perpetual Notes issued by Rede Energia S.A. have formed an informal ad hoc group in order to advance the value of the Perpetual Notes they hold. Rede is in a Brazilian insolvency proceeding, and is expected to propose a debt restructuring plan very soon. Once Rede proposes its restructuring plan, there will be a creditors meeting to vote on the plan, which will also likely take place soon. To discuss specific steps Perpetual Noteholders should be taking immediately to prepare for the creditors meeting, including the ad hoc group's recommendation that the indenture trustee be replaced, the ad hoc group will host a conference call for Perpetual Noteholders on Monday, 11 March 2013 at 11:30 a. m., New York time. Rede's Brazilian insolvency will proceed very quickly, so there is little time to prepare and to accomplish the replacement of the indenture trustee. Note holders are therefore encouraged to join this conference call in all circumstances. To join the call, kindly contact the ad hoc group's legal counsel as quickly as possible as follows: Tim DeSieno Matthew Cursio BINGHAM MCCUTCHEN LLP BINGHAM MCCUTCHEN LLP 399 Park Avenue 399 Park Avenue New York NY 10022 USA New York NY 10022 USA Tel +1 212 705 7426 Tel +1 212 705 7277 E-mail: tim.desieno@bingham.com E-mail: matthew.cursio@bingham.com About Rede Energia Rede Energia SA, headquartered in Sao Paulo, Brazil, is a holding company with interests mostly in the electricity distribution. Through majority-owned subsidiaries Companhia de Energia Eletrica do Estado do Tocantins - Celtins, Centrais Eletricas Matogrossenses S.A. - Cemat, Centrais Eletricas do Para S.A. - Celpa and Empresa Energ. do Mato Grosso Sul -- Enersul, the group operates concessions to distribute electricity in the states of Tocantins, Mato Grosso, Para and Mato Grosso do Sul, respectively. ========================== C A Y M A N I S L A N D S ========================== APAC APEMM: Shareholders Receive Wind-Up Report ----------------------------------------------- On Jan. 21, 2013, the shareholders of Apac Apemm Fund received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: John Ralph Wardlaw c/o Lewis Holdway 20 Queen Street Melbourne Victoria Australia Telephone: (613) 9629-9629 Facsimile: (613) 9629-9630 ATTARA MANAGEMENT: Shareholder Receives Wind-Up Report ------------------------------------------------------ On Jan. 24, 2013, the shareholder of Attara Management, Ltd received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ian D. Stokoe c/o Sarah Moxam Telephone: (345) 914-8634 Facsimile: (345) 945-4237 PO Box 258 Grand Cayman KY1-1104 Cayman Islands BELLMAN WALTER: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Bellman Walter Global Fund Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jeffrey Bellman 4040 Civic Center Drive Suite 200, San Rafael CA 94903 USA CC HOLDINGS: Shareholder Receives Wind-Up Report ------------------------------------------------ On Jan. 18, 2013, the shareholder of CC Holdings 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 EVOLVED ALPHA: Shareholder Receives Wind-Up Report -------------------------------------------------- On Jan. 18, 2013, the shareholder of Evolved Alpha, 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 EVOLVED ALPHA EQUITIES: Shareholder Receives Wind-Up Report ----------------------------------------------------------- On Jan. 18, 2013, the shareholder of Evolved Alpha Equities MF, 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 EVOLVED ALPHA FOX: Shareholder Receives Wind-Up Report ------------------------------------------------------ On Jan. 18, 2013, the shareholder of Evolved Alpha F.O.X. MF, 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 MITAKE INTERNATIONAL: Shareholder Receives Wind-Up Report --------------------------------------------------------- On Jan. 9, 2013, the shareholder of Mitake International Holdings Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Chiu, Hung-Che 11th Floor, No. 39, Sec. 2 Hsin Sheng N. Road Taipei, Taiwan, R.O.C. Telephone: +8 (862) 2563-9999 Facsimile: +8 (862) 2567-1968 MUSE CORPORATION: Shareholders Receive Wind-Up Report ----------------------------------------------------- On Jan. 17, 2013, the shareholders of Muse Corporation Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Darren Riley c/o Ellen J. Christian Telephone: (345) 945-9208 Facsimile: (345) 945-9210 c/o BNP Paribas Bank & Trust Cayman Limited Royal Bank House, 3rd Floor Shedden Road, George Town Grand Cayman Cayman Islands PINOT PACIFIC SA: Shareholders Receive Wind-Up Report ----------------------------------------------------- On Jan. 14, 2013, the shareholders of Pinot Pacific SA received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Trident Liquidators (Cayman) Limited c/o Mrs. Eva Moore Trident Trust Company (Cayman) Limited P.O. Box 847, George Town Grand Cayman KY1-1103 Cayman Islands Telephone: (345) 949-0880 Facsimile: (345) 949-0881 PREFERRED INVESTORS: Shareholder Receives Wind-Up Report -------------------------------------------------------- On Jan. 18, 2013, the shareholder of Preferred Investors Offshore, 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 RED COBRA: Shareholder Receives Wind-Up Report ---------------------------------------------- On Jan. 18, 2013, the shareholder of Red Cobra Fund (139516) 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 SAB FAMILY: Shareholders Receive Wind-Up Report ----------------------------------------------- On Jan. 15, 2013, the shareholders of SAB Family Office (PTC) Ltd received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Cees Jan Quirijns H&P Trust Group Poststrasse 6, 6300 Zug Switzerland Telephone: +4 (141) 729-6363 Facsimile: +4 (141) 729-6364 SEMAPHORE OFFSHORE: Shareholders Receive Wind-Up Report ------------------------------------------------------- On Jan. 11, 2013, the shareholders of Semaphore Offshore Limited 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 SOGEPA MULTI-STRATEGY: Shareholder Receives Wind-Up Report ---------------------------------------------------------- On Jan. 18, 2013, the shareholder of Sogepa Multi-Strategy 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 SOLA SPV II: Shareholder Receives Wind-Up Report ------------------------------------------------ On Jan. 15, 2013, the shareholder of Sola SPV II received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Jo-Anne Maher Telephone: (345) 815-1762 Facsimile: (345) 949-9877 TEMPEST PE FUND 1: Shareholder Receives Wind-Up Report ------------------------------------------------------ On Jan. 18, 2013, the shareholder of Tempest Pe Fund 1 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 TRITON CORPORATION: Shareholders Receive Wind-Up Report ------------------------------------------------------- On Jan. 17, 2013, the shareholders of Triton Corporation Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Darren Riley c/o Ellen J. Christian Telephone: (345) 945-9208 Facsimile: (345) 945-9210 c/o BNP Paribas Bank & Trust Cayman Limited Royal Bank House, 3rd Floor Shedden Road, George Town Grand Cayman Cayman Islands ============= J A M A I C A ============= UC RUSAL: Incurs US$55-Million Net Loss in 2012 ----------------------------------------------- RJR News reports that UC Rusal, the Russian aluminum company which controls some of the major mining companies in Jamaica, has reported a net loss of US$55 million for 2012. The report relates that the company plans to cut production following lackluster demand for aluminum and falling prices. UC Rusal fell into the red for the fiscal year ending December 31 compared with a net profit of US$237 million in 2011, according to RJR News. The report relates that revenue declined by 11.4% to US$10.8 billion. RJR News notes that Oleg Deripaska, UC Rusal's chief executive, has described 2012 as particularly challenging for the aluminum industry; although global aluminum consumption rose by 6% to 47 million tons, prices fell 15.7%. UC Rusal expects to cut approximately 300,000 tons of aluminum production capacity at its less efficient aluminum smelters by the end of 2013 to improve efficiency, RJR News adds. =========== M E X I C O =========== BANCO INTERACCIONES: Moody's Keeps Ba3 Long Term Sr. Debt Rating ---------------------------------------------------------------- Moody's de Mexico affirmed Banco Interacciones, S.A.'s E+ standalone bank financial strength rating but lowered the standalone baseline credit assessment to b2, from b1. Moody's also affirmed the bank's long- and short-term global local and foreign currency deposit ratings of Ba3 and Not Prime, as well as the Ba3 long-term global local currency senior debt rating. Also affirmed were the A3.mx and MX-3, long and short term Mexican National Scale ratings. At the same time, Moody's de Mexico downgraded the bank's long- term global local currency subordinated debt ratings to B3 (hyb), from B1 (hyb), and the Mexican National Scale subordinated debt ratings to Ba2.mx (hyb) from Baa1.mx (hyb). The action on the subordinated debt rating concludes the review for downgrade initiated on December 4, 2012. Moody's has removed systemic support from subordinated debt instruments, placing them one notch below the bank's adjusted baseline credit assessment. Moody's de Mexico also affirmed the Ba3 long-term global local currency issuer rating as well as the A3.mx Mexican National Scale ratings on Interacciones Casa de Bolsa, S. A. de C.V. (CB Interacciones) and changed CB Interacciones' standalone credit strength to b2, from b1. The short-term Mexican National Scale issuer rating was downgraded to MX-3 from MX-2. The rating outlook on all these ratings was changed to negative, from stable. Banco Interacciones, S.A. - Bank Financial Strength Rating of E+: Affirmed, outlook changed to negative from stable - Long-term global local currency deposits of Ba3: Affirmed, outlook changed to negative from stable - Short-term global local currency deposits of Not-Prime: Affirmed - Long-term foreign currency deposits of Ba3: Affirmed, outlook changed to negative from stable - Short-term foreign currency deposits of Not-Prime: Affirmed - Long-term Mexican National Scale rating of A3.mx: Affirmed, outlook changed to negative from stable - Short-term Mexican National Scale rating of MX-3: Affirmed - Long-term global local currency senior unsecured debt (debt program) of (P) Ba3: Affirmed - Short-term global local currency senior unsecured debt (debt program) of (P) Not-Prime: Affirmed - Long-term global local currency senior unsecured debt of Ba3: Affirmed, outlook changed to negative from stable - Long term Mexican National Scale senior unsecured debt (debt program) of A3.mx: Affirmed - Short term Mexican National Scale rating of MX-3: Affirmed - Long-term Mexican National Scale senior unsecured debt of A3.mx: Affirmed, outlook changed to negative from stable - Long-term global local currency subordinated debt: Downgraded to B3 (hyb) from B1 (hyb), negative outlook - Long-term global local currency subordinated debt (debt program): Downgraded to (P) B3 from (P) B1 - Long-term Mexican National Scale subordinated debt: Downgraded to Ba2.mx (hyb) from Baa1.mx (hyb), negative outlook - Long-term Mexican National Scale subordinated debt (debt program): Downgraded to Ba2.mx from Baa1.mx Interacciones Casa de Bolsa, S.A. de C.V. - Long-term global local currency issuer rating of Ba3: Affirmed, outlook changed to negative from stable - Short-term global local currency issuer rating of Not-Prime: Affirmed - Long-term Mexican National Scale rating of A3.mx: Affirmed, outlook changed to negative from stable - Short-term Mexican National Scale rating: Downgraded to MX-3 from MX-2 Ratings Rationale: Lowering The Standalone Credit Strength To B2 With Negative Outlook, From B1 In lowering Interacciones' standalone baseline credit assessment to b2, from b1, Moody's noted the high and still growing loan concentrations to single borrowers relative to the bank's capital and earnings; the increasing liquidity risk stemming from structural asset and liability mismatches, and the concerns about the future viability of the bank's specialized business franchise posed by potential changes in the regulatory environment. The bank's high industry and single credit concentrations to states and municipalities relative to Tier 1 capital and core earnings continue to increase, as reflected by the absolute growth of 22% in the combined balance of the bank's 20 largest borrowers between 2011 and 2012, and which now accounts for over seven times Tier 1 capital, and 19.7 times core earnings, according to Moody's estimates. Moreover, ten states and municipalities comprise nearly 81% of the bank's total loan exposure to this segment, a profile that reflects poor loan granularity and weak risk diversification. The bank's funding and liquidity profile remains a concern, said Moody's, because of Interacciones' limited access to long-term funding to support the long tenors of its loans, particularly those to states and municipalities, and project and infrastructure finance, which combined account for over 70% of total loans, according to Moody's estimates. In comparison, the bank's long- term funding sources in the form of senior and subordinated debt represent a much lower 32% of Interacciones' long term loans, with short-dated customer deposits accounting for a significant share of total liabilities. In Moody's view, this structural asset and liability mismatch exposes the bank to liquidity and market risks, and leave the bank vulnerable to potential sudden shifts in interest rates and investor confidence. Moody's also noted that the downgrade and negative outlook on Interacciones' ratings reflect the potential threats to the future viability of the bank's niche business model and growth and earnings prospects posed by potential new legislation and regulatory changes. Such potential changes include: (i) new norms limiting concentrated exposures to sub-sovereign entities, including those backed by federal tax transfers; ii) new legislation that contemplates restricting the borrowing and spending activities of states and municipalities, and iii) the possibility of direct guarantees by the federal government being proffered to states and municipalities that could influence the pricing and hence the profit dynamics of banks lending to this segment. Affirmation Of Deposit Ratings Moody's continues to assess a moderate probability of systemic support to Interacciones' deposits in case of need. As a result, the bank's Ba3 global local currency deposit rating receives a two-notch uplift from the b2 standalone baseline credit assessment. Downgrade Of Subordinated Debt In notching the subordinated debt ratings from the adjusted baseline credit assessment, 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 subordinated debt is consistent with recent actions Moody's has taken elsewhere, including Colombia, Brazil, Chile, Peru, Guatemala, 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 Mexican banking regulators have no explicit legal ability to impose losses on subordinated debts that do not contractually allow such measures. Mexican banking law nevertheless establishes a clear mechanism whereby certain types of subordinated debt issuances would be forced to bear losses up to levels which would re-establish appropriate capitalization levels, based on breach of minimum early warning capitalization thresholds or minimum capitalization levels. The outlook on Interacciones' subordinated debt ratings is now negative, in line with the negative outlook on the bank's senior and unsupported ratings, from which they are derived. Interacciones Casa De Bolsa, S.A. De C.V. (CB Interacciones) The downgrade of CB Interacciones' standalone credit strength to b2 from b1 considers the effect the weaker intrinsic strength of Interacciones could have on its sister company including heightened brand and reputational risks that could potentially damage the brokerage house's franchise and business potential. The affirmation of the Ba3 global local currency issuer rating assigned to CB Interacciones reflects the high level of integration between the brokerage firm and Interacciones in terms of risk management, systems and human resources. The short-term National Scale rating was downgraded to MX-3 from MX-2 to align it to Interacciones' short-term National Scale rating. The negative outlook on CB Interacciones' ratings therefore also mirrors the negative outlook on Interacciones. Baseline Credit Assessment 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 Interacciones, the baseline credit assessment equals the adjusted baseline credit assessment because this bank does not benefit from parental support. The following baseline credit assessment/adjusted baseline credit assessment was downgraded: Banco Interacciones: to b2/b2, from b1/b1 Interacciones is headquartered in Mexico City. As of 31 December 2012, the bank reported Mx$102 billion in assets (source: Comision Nacional Bancaria y de Valores). The principal methodology used in this ratings was Moody's Consolidated Global Bank Rating Methodology published in June 2012. Moody's National Scale Ratings 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. The date of the last Credit Rating Action on Interacciones was on December 4, 2012 when Moody's reviewed the subordinated debt ratings of two Mexican bank issuers for downgrade. The period of time covered in the financial information used to determine Interacciones' rating is between December 31, 2006 and December 30, 2012. The sources and items of information used to determine Interacciones' rating include 2011 and 2012 interim financial statements (source: Banco Interacciones, S.A.); year-end 2011 and 2012 audited financial statements (source: Banco Interacciones, S.A., audited by Salles Sainz Grant Thornton); financial statements and information on market position (source: CNBV); regulatory capital information (source: Banco de Mexico); debt offering memorandum (Banco Interacciones, S.A.). BBVA MERCANTIL: Moody's Confirms Ba1 Rating on Subordinated Debt ---------------------------------------------------------------- Moody's Investors Service downgraded the ratings assigned to subordinated debt issued by BBVA Bancomer, S.A (BBVA Bancomer) issued through the bank's Texas Agency (BBVA Bancomer, S.A. Texas Agency) and Grand Cayman Branch (BBVA Bancomer, S.A., Grand Cayman Branch). Moody's also downgraded the ratings assigned to subordinated debt issued by Banco Mercantil del Norte, S.A. (Banorte). Moody's also confirmed Banorte's long-term foreign currency junior subordinated debt rating of Ba1 (hyb). These actions conclude the review for downgrade initiated on these ratings on June 28, 2012 on BBVA Bancomer, and December 4, 2012 on Banorte, respectively. 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 two notches below the adjusted BCA for junior subordinated debt, respectively. All other ratings and outlooks for these issuers remain unaffected by these rating actions. The following subordinated and junior subordinated debt ratings were downgraded: BBVA Bancomer, S.A. Texas Agency Long-term global local currency subordinated debt rating: Downgraded to Baa2 from A3, stable outlook Long-term global local currency junior subordinated debt rating: Downgraded to Baa3 (hyb) from Baa2 (hyb), outlook stable BBVA Bancomer, S.A. Grand Cayman Branch Long-term global local currency junior subordinated debt rating: Downgraded to Baa3 (hyb) from Baa2 (hyb), outlook stable Banco Mercantil del Norte, S.A. Long-term foreign currency subordinated debt rating: Downgraded to Baa3 (hyb) from Baa1 (hyb), negative outlook The following junior subordinated debt rating was confirmed: Long-term foreign currency junior subordinated debt rating of Ba1 (hyb): Confirmed, negative outlook 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 subordinated debt is consistent with recent actions Moody's has taken elsewhere, including Colombia, Brazil, Chile, Peru, Guatemala, 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 if support were required. Moody's notes that Mexican banking regulators have no an explicit legal ability to impose losses on subordinated debt that do not explicitly allow such measures in their documentation. Mexican banking laws nevertheless establishes a clear mechanism whereby certain types of subordinated debt issuances would be forced to bear losses up to levels which would re-establish appropriate capitalization levels, based on breach of minimum early warning capitalization thresholds or minimum capitalization levels. The outlook on all affected subordinated debt ratings for BBVA Bancomer is now stable. The outlook on Banorte's subordinated debt ratings is negative. The negative outlook on Banorte's subordinated debt ratings reflects the negative outlook on the bank's standalone baa2 baseline credit assessment. The negative outlook was assigned in December 2012 following Banorte's announcement of the sizable acquisition of BBVA Bancomer Afore (Afore Bancomer) in Mexico. Baseline Credit Assessments Baseline credit assessments reflect 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 Bancomer and Banorte, the baseline credit assessment equals the adjusted baseline credit assessment because neither of these banks benefit from parental support. The following baseline credit assessments/adjusted baseline credit assessments remain unchanged: BBVA Bancomer: baa1/baa1 Banco Mercantil del Norte: baa2/baa2 BBVA Bancomer is headquartered in Mexico City. As of December 31, 2012, the bank reported Mx$1,264 billion in assets (source: Comision Nacional Bancaria y de Valores). Banorte is headquartered in Mexico City. As of December 31, 2012, the bank reported Mx$604 billion in assets (source: Comision Nacional Bancaria y de Valores). The principal methodology used in this ratings was Moody's Consolidated Global Bank Rating Methodology published in July 2012. The date of the last Credit Rating Action on BBVA Bancomer was on February 11, 2013 when Moody's de Mexico placed on review for downgrade BBVA Bancomer's Mexican National Scale subordinated debt ratings. The date of the last Credit Rating Action on Banorte was on December 7, 2012 Moody's affirmed Banorte's ratings following Afore Bancomer's acquisition and changed the outlook to negative. HIPOTECARIA SU CASITA: S&P Cuts Rating on Class A Notes to 'CCC' ---------------------------------------------------------------- Standard & Poor's Rating Services lowered its long-term global scale rating to 'CCC (sf)' from 'B (sf)' on the senior class A residential mortgage-backed notes due 2035, a cross-border RMBS transaction issued by Hipotecaria Su Casita S.A. de C.V. SOFOM E.N.R. (Su Casita) and serviced by Patrimonio, S.A. de C.V. S.F.O.L. (Patrimonio). At the same time, S&P lowered the ratings on senior series BRHCCB 07U and BRHCCB 07-2U to 'CCC (sf)' and 'mxCCC (sf)' from 'B (sf)' and 'mxBB+ (sf)' from another RMBS transaction issued by Su Casita and serviced by Patrimonio. The downgrades on senior class A notes and senior series BRHCCB 07U and BRHCCB 07-2U follow a similar rating action on Feb. 28, 2013, when the insurer financial strength rating on MBIA Insurance Corp. was lowered to 'CCC' from 'B', and on March 5, 2013, when the ratings on MBIA Mexico were lowered to 'CCC' and 'mxCCC' from 'B' and 'mxBB+' Under S&P's criteria, the issue rating on an insured bond reflects the higher of the rating on the bond insurer or the SPUR on the security. S&P's SPUR ratings on classes with full bond insurance reflect the stand-alone capacity of an issue to pay debt service without giving effect to the external enhancement, in this case, without the protection given by the bond insurance provided by MBIA. Hence, S&P's rating of 'CCC (sf)' on senior class A reflects the swap guarantee and the full financial guarantee provided by MBIA Insurance Corp. The global scale rating of 'CCC (sf)' and national scale rating of 'mxCCC (sf)' for senior series BRHCCB 07U and BRHCCB 07-2U reflect the full financial guarantee provided by MBIA Mexico. While the ratings on the affected series reflect the rating on the respective bond insurer's financial enhancement, the SPURs on those series are not affected by the recent rating action on MBIA and MBIA Mexico. Additionally, the ratings of 'mxCC (sf)' and 'D (sf)' on subordinated series class B notes and BRHCCB 07-3U, respectively, remain unchanged. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATINGS LOWERED Hipotecaria Su Casita-Residential Mortgage Backed Notes Class Rating Outs. amount Class type To From (mil.) A Senior CCC (sf) B (sf) USD105.27 Hipotecaria Su Casita-Bursatilizaciones de Hipotecas Residenciales III Class Rating Outs. amount Class type To From (mil.) BRHCCB 07U Senior CCC (sf) B (sf) 13.97 UDIs BRHCCB 07U Senior mxCCC (sf) mxBB+ (sf) 13.97 UDIs BRHCCB 07-2U Senior CCC (sf) B (sf) 425.20 UDIs BRHCCB 07-2U Senior mxCCC (Sf) mxBB+ (sf) 425.20 UDIs OTHER OUTSTANDING RATINGS Hipotecaria Su Casita-Residential Mortgage Backed Notes Class Rating Outs. amount Class type (mil.) A SPUR CC (sf) USD105.27 B Sub. mxCC (sf) MXN184.97 Hipotecaria Su Casita-Bursatilizaciones de Hipotecas Residenciales III Class Rating Outs. amount Class type (mil.) BRHCCB 07U SPUR CC (sf) 13.97 UDIs BRHCCB 07-2U SPUR CC (sf) 425.20 UDIs BRHCCB 07-3U Sub. D (sf) 64.85 UDIs MBIA MEXICO: S&P Lowers Counterparty Credit Rating to 'CCC' ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its global scale counterparty credit and financial strength ratings on MBIA Mexico S.A. de C.V. (MBIA Mexico) to 'CCC' from 'B' and its national scale financial strength rating to 'mxCCC' from 'mxBB+'. The outlook remains negative. The rating actions mirror the downgrade of MBIA Mexico's U.S.- based parent, MBIA Insurance Corp. (MBIA Corp.; CCC/Negative/--). "The ratings on the Mexican subsidiary are based on the support MBIA Corp. provides," said Standard & Poor's credit analyst Amalia Bulacios. Support comes in the form of a reinsurance agreement calling for MBIA Mexico to cede 100% of its net liability and other obligations to MBIA Corp., and a net worth maintenance agreement in which MBIA Corp. agrees to maintain MBIA Mexico's capital equal to Mexican regulatory requirements or $10 million, whichever is greater. The rating action on MBIA Corp. reflects S&P's view that the company will likely come under regulatory control over the next 12 months. MBIA Corp.'s commercial mortgage-backed securities portfolio has experienced significant deterioration in recent months, leading to the probability that claim payments could begin in the near term. The remaining deductible for these exposures provides limited protection from claim payments by the company. These potential claim payments could place stress on MBIA Corp.'s already weak liquidity position, which could lead to regulatory intervention. The ratings also reflect the fact that MBIA Corp. is in a run-off state. S&P believes that the parent's future support of MBIA Mexico is uncertain if the former were to fall under regulatory control. Under a non-support scenario, the Mexican subsidiary would have to pay any potential losses arising from its policies from its small capital base ($12.6 million as of December 2012), and therefore face capital depletion and a breach of regulatory capital requirements in the short term. * Moody's Reports on Non-earmarked Transfers for Mexican States --------------------------------------------------------------- The new formula for "participaciones," non-earmarked transfers to Mexican states from the federal government, has not affected the states' debt service coverage ratios, which remains strong, and rating actions are not expected because of it, says Moody's Investors Service in a new report on how the program, in place since 2008, has fared. "While the new formula generates winners and losers because some states have seen their share of participaciones increase while others have experienced a decline, the formula's gradual phase-in provides opportunities for states to adjust," said Moody's Analyst Roxana Munoz, author of the report, "Mexican States -- Winners and Losers Emerge from Change to Participaciones Distribution Formula." "The new formula favors states that have greater urban populations, fast-growing economies and improving tax collections," said Munoz. "Still, we do not anticipate any rating trends based solely on changes to this program." The 2008 change involved the formula for distributing the participaciones, which, on average, represent almost 70% of states' discretionary revenues, according to Moody's. Importantly, participaciones are also the main source of revenues that states pledge to pay their long-term debt obligations. "Because there is no mechanism to compensate for the gap in participaciones between winners and losers under the revised formula, the disparity among states in terms of their non- earmarked revenues has increased," said Munoz. "This will continue and even increase as the new formula continues to be phased-in." ================= V E N E Z U E L A ================= * VENEZUELA: Bonds Decline After Hugo Chavez Dies ------------------------------------------------- Ye Xie & Veronica Navarro Espinosa at Bloomberg News report that Venezuela's dollar-denominated bonds fell for a second day after President Hugo Chavez died and his deputy stepped in to run the country, South America's biggest oil exporter. Bloomberg News relates that the cost of protecting its debt against non-payment was steady. The yield on the US$4 billion of notes maturing in 2027 rose to the highest since Jan. 22 after Vice President Nicolas Maduro announced on state television that Chavez died at a military hospital in Caracas and urged Venezuelans to refrain from violence, according to Bloomberg News. Bloomberg News notes that Mr. Maduro will be interim president, Foreign Minister Elias Jaua said, pending an election. Bloomberg News discloses that Venezuelan bonds may rally March 6, 2013, as some investors speculate the next administration will implement "more pragmatic" economic policies, said Robert Abad. "The market may be worried about the political tension going into the election and how the new Chavismo will shape up without its historical leader. . . . Bond investors have been positive in anticipation of this event. This is an important moment for the country and could represent a major opportunity for change," Bloomberg News quoted Emanuele Del Monte, who helps manage $2.7 billion of bonds at Fideuram Asset Management in Dublin, including Venezuela debt, as saying. "The market will now focus on the election. . . . We don't know if there'll be policy continuity. While this is a dramatic moment, it was not necessarily a surprising moment," David Rolley, the vice president of the global fixed-income group at Loomis Sayles & Co., who co-manages $36 billion told Bloomberg News in an interview. The South American country has US$36 billion worth of dollar bonds outstanding with maturities of up to 2038, and EUR1 billion ($1.3 billion) of debt due in 2015, according to data compiled by Bloomberg. Venezuela's notes have rallied 28% over the past year, more than the 11 percent average return for emerging-market sovereign bonds tracked by JPMorgan Chase & Co.'s EMBI Global index, as the deterioration of Chavez's health fueled speculation that a new government may unwind policies that pushed up inflation and repelled foreign investors, Bloomberg News adds. Mr. Maduro will take over as interim president until elections are organized within 30 days, Minister Jaua said, notes Bloomberg News. Chavez tapped Maduro in his final public speech on Dec. 8 to represent his government in that vote. "It is not clear at this stage if the government will strictly follow all of the steps detailed in the country's constitution," Bloomberg quoted Barclays Plc analysts Alejandro Grisanti and Alejandro Arreaza as saying in a report. "As events unfold we will expect a big increase in volatility in the market in the next few days," they added. =============== X X X X X X X X =============== * 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 * * *