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/raid1/www/Hosts/bankrupt/TCRLA_Public/130327.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 Wednesday, March 27, 2013, Vol. 14, No. 61 Headlines B R A Z I L COSAN LUXEMBOURG: Moody's Rates BRL850MM Senior Notes Issue Ba2 * BRAZIL: CIESA Suit Wins Latin Lawyer Deal of the Year Award C A Y M A N I S L A N D S AA EQUITY: Shareholders Receive Wind-Up Report APACHE FINANCE: Shareholders Receive Wind-Up Report APACHE FINANCE EAST: Shareholders Receive Wind-Up Report APACHE FINANCE EXPLORATION: Shareholders Receive Wind-Up Report APACHE FINANCE KHALDA: Shareholders Receive Wind-Up Report APACHE FINANCE MATRUH: Shareholders Receive Wind-Up Report APACHE FINANCE MEDITERRANEAN: Shareholders Receive Wind-Up Report ECAMOS ROLLOVER: Shareholders Receive Wind-Up Report FAV LIMITED: Shareholders Receive Wind-Up Report GEN2 EXPLORERS: Shareholders Receive Wind-Up Report INCOME PARTNERS: Shareholders Receive Wind-Up Report LUMISTAR INVESTMENTS: Shareholders Receive Wind-Up Report PADMASAMBHAVA HOLDINGS: Shareholders Receive Wind-Up Report PROVINCETOWN LIMITED: Shareholders Receive Wind-Up Report REAL ESTATE: Shareholders Receive Wind-Up Report RHOMBUS CAPITAL: Members Receive Wind-Up Report SAHARA INVESTMENTS: Shareholders Receive Wind-Up Report STANLEY HOLDINGS: Shareholders Receive Wind-Up Report TANAMERA HOLDINGS: Sole Member Receives Wind-Up Report YMK INVESTMENTS: Shareholders Receive Wind-Up Report J A M A I C A DIGICEL GROUP: Seeks to Raise US$300 Million More in Bond Offer M E X I C O MXMACFW 07-3U: Moody's Reviews Ratings for Possible Downgrade * MEXICO: Moody's Confirms Jalisco State's B1 GS Rating T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Explores Code Sharing Deal With Air India - - - - - =========== B R A Z I L =========== COSAN LUXEMBOURG: Moody's Rates BRL850MM Senior Notes Issue Ba2 --------------------------------------------------------------- Moody's Investors Service assigned a Ba2 foreign currency rating to Cosan Luxembourg's issuance of BRL850 million 5-year senior unsecured notes. The Ba2/A1.br Corporate Family rating and Ba2 existing senior notes rating are unaffected by this action. The ratings outlook is stable. The proposed notes will be unconditionally guaranteed by Cosan S.A. Proceeds will be used to repay part of the company's BRL3.3 billion debentures, used to fund the Comgas acquisition. Ratings Rationale: Cosan's Ba2 ratings reflect primarily the company's diversified portfolio of businesses, including the entire sugar-ethanol chain, fuel and lubes distribution, land management, and commodities transportation and logistics in Brazil. The acquisition of a 60.1% in gas distributor Comgas (Baa3 Stable), concluded on November 5th, will further diversify the company's earnings stream and translate into a more stable cash source over the long-term. Moreover, Moody's expects Raizen and Comgas to distribute a significant amount of dividends over the next several years, which will represent the bulk of the company's cash generation. Constraining the ratings is Cosan's acquisitive profile, which includes, in addition to Comgas, the potential acquisition of a 5.67% stake in ALL (Ba3/Stable) amounting to BRL 897 million. Comgas transaction pressured Cosan's credit metrics in the short- term, leading to an increase in pro-forma adjusted gross leverage (including Comgas but excluding Raizen) to about 5.0x in December 2012, . Moreover, Moody's views execution risks related to the integration of such different operations to be high and could impact financial performance and reduce management focus. Moody's considers Cosan's current liquidity as adequate. Its reported cash position of BRL 2.3 billion as of December 2012 is sufficient to cover short term debt by about 1.3x. With the incorporation of Comgas, Cosan's capital expenditures would increase by about BRL 600 million to BRL 3.3 to 3.5 billion per year by Moody's estimates. In Moody's view, this could reduce liquidity in the case of a lower than expected dividend stream. Moreover, Cosan's liquidity commitment in the joint up to USD 500 million committed facility with Shell to Raizen in case of emergency financial needs, may be an additional call on Cosan's liquidity. Although not likely, given Raizen's strong credit profile, Moody's estimates that Cosan could have a cash disbursement of at least BRL 300 million as a result of this commitment. Cosan's notes may be subject to structural subordination depending on the future debt and guarantee structure at its subsidiaries and could be notched down from the CFR. The stable outlook reflect Moody's view that Cosan will be able to fund future capital investments with cash generation and also from the dividends inflow from Raizen and Comgas, thus being able to maintain leverage below 3.5x over time and profitability near current levels. It also considers that the company will conduct any future acquisition plans in a prudent manner, in order not to impact its current credit metrics. The ratings could be upgraded if Cosan proves able to integrate its recent acquisitions, while preserving cash generation and current credit metrics. Quantitatively, that would be the case if leverage approaches 3.0x, CFO/Net Debt above 35% and EBITA/interest expense higher than 4.0x. A downgrade could result from a deterioration in liquidity and also from the inability of keeping operating margins near current levels. More specifically, the ratings could be downgraded if total adjusted debt to EBITDA is sustained above 4.0x, CFO/Net Debt less than 20% and EBITA/ interest expense below 3.5x. A large debt funded acquisition could also put downward pressure on the rating. The principal methodology used in this rating was the Global Food - Protein and Agriculture Industry Methodology published in September 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Headquartered in Sao Paulo, Cosan S.A. Industria e Comercio, is a conglomerate with businesses in the sugar & ethanol space, fuel and gas distribution, land management of agricultural properties, logistics and production and commercialization of lubes. For the LTM period ended in December, 2012 the company posted net sales of BRL 27.3 billion and adjusted EBITDA margin of 12.7%. The company's largest assets are Raizen (50% stake) and Comgas (60% stake). Raizen (Baa3 Stable), formed through a 50-50 JV with Shell, is globally one of the leading players in the growing of sugar and ethanol business, with an installed crushing capacity of 65 million tons of sugarcane, and domestically the third largest fuel distributor, with 4,700 service stations principally under the Shell brand. Comgas (Baa3 Stable) is the largest distributor of natural gas in Brazil, with a concession area that covers 27% of country's GDP. Since Comgas' acquisition was closed in November, 2012 only two months of financials were so far consolidated into Cosan's results. Cosan also produces and distributes lubes and base oils under the Mobil brand; has a 75% stake in Rumo, a leading logistics provider for the transportation and loading of sugar and has a 37.7% stake in Radar, a land management company with various interests in agricultural properties. The acquisition of a 5.7% stake in ALL, a provider of rail and trucking logistics services with six concessions in Brazil and Argentina, is still pending. * BRAZIL: CIESA Suit Wins Latin Lawyer Deal of the Year Award ------------------------------------------------------------- Wilk Auslander LLP on March 21 disclosed that a litigation in which Wilk Auslander LLP represented Compania de Inversiones de Energia S.A. ("CIESA") in New York has won a Latin Lawyer Deal of the Year Award. The firm represented, in addition to CIESA, parties such as Petrobras Energia S.A. in the litigation. Latin Lawyer, the leading business law resource for Latin America, awarded "Deal of the Year" recognition to the CIESA litigation in the Disputes category. The litigation related to a restructuring of "US$220 million worth of notes," as reported in a prior Latin Lawyer article by Rachel Hall. The Wilk Auslander LLP litigation team included partners Jay S. Auslander and Natalie Shkolnik and associate Julie Cilia. Latin Lawyer announced the winners at its 7th Annual Deal of the Year Awards ceremony in Sao Paulo, Brazil on March 19, 2013. The charity dinner featured awards in the areas of Corporate Finance, M&A, Restructuring, Project Finance, Disputes, Outbound Investment, Regulatory, and Private Equity. About Wilk Auslander LLP Wilk Auslander LLP -- http://www.wilkauslander.com/-- is a law firm with offices in New York City and Europe. Its litigation department represents clients in a wide array of business disputes, including diverse matters relating to general commercial issues, distressed debt, judgment enforcement, regulatory enforcement, securities, real estate, and bankruptcy. The firm also provides transactional legal services to clients in areas such as real estate, tax, corporate, employment, and intellectual property. ========================== C A Y M A N I S L A N D S ========================== AA EQUITY: Shareholders Receive Wind-Up Report ---------------------------------------------- On Feb. 14, 2013, the shareholders of AA Equity Limited 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 APACHE FINANCE: Shareholders Receive Wind-Up Report --------------------------------------------------- On Feb. 11, 2013, the shareholders of Apache Finance Qarun Corporation LDC received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Westport Services Ltd c/o Avril G. Brophy Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands APACHE FINANCE EAST: Shareholders Receive Wind-Up Report -------------------------------------------------------- On Feb. 11, 2013, the shareholders of Apache Finance East Bahariya Corporation LDC received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Westport Services Ltd c/o Avril G. Brophy Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands APACHE FINANCE EXPLORATION: Shareholders Receive Wind-Up Report --------------------------------------------------------------- On Feb. 11, 2013, the shareholders of Apache Finance Qarun Exploration Company LDC received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Westport Services Ltd c/o Avril G. Brophy Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands APACHE FINANCE KHALDA: Shareholders Receive Wind-Up Report ---------------------------------------------------------- On Feb. 11, 2013, the shareholders of Apache Finance Khalda Corporation LDC received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Westport Services Ltd c/o Avril G. Brophy Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands APACHE FINANCE MATRUH: Shareholders Receive Wind-Up Report ---------------------------------------------------------- On Feb. 11, 2013, the shareholders of Apache Finance Matruh Corporation LDC received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Westport Services Ltd c/o Avril G. Brophy Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands APACHE FINANCE MEDITERRANEAN: Shareholders Receive Wind-Up Report ----------------------------------------------------------------- On Feb. 11, 2013, the shareholders of Apache Finance Mediterranean Corporation LDC received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Westport Services Ltd c/o Avril G. Brophy Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands ECAMOS ROLLOVER: Shareholders Receive Wind-Up Report ---------------------------------------------------- On Feb. 18, 2013, the shareholders of Ecamos Rollover Trading Company received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Fides Limited P.O. Box 10338 Grand Cayman KY1-1003 Cayman Islands Telephone: (345) 949 7232 FAV LIMITED: Shareholders Receive Wind-Up Report ------------------------------------------------ On Jan. 15, 2013, the shareholders of Fav Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands GEN2 EXPLORERS: Shareholders Receive Wind-Up Report --------------------------------------------------- On Jan. 30, 2013, the shareholders of Gen2 Explorers Fund Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Paul Lincoln Heffner 2101-02, Infinitus Plaza, 21st Floor 199 Des Voeux Road Central Hong Kong INCOME PARTNERS: Shareholders Receive Wind-Up Report ---------------------------------------------------- On Feb. 18, 2013, the shareholders of Income Partners Greater China High Yield Fund received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Emil Nguy 3311-3313 Two IFC, 8 Finance Street Central Hong Kong LUMISTAR INVESTMENTS: Shareholders Receive Wind-Up Report --------------------------------------------------------- On Jan. 15, 2013, the shareholders of Lumistar Investments Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands PADMASAMBHAVA HOLDINGS: Shareholders Receive Wind-Up Report ----------------------------------------------------------- On Jan. 15, 2013, the shareholders of Padmasambhava Holdings Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands PROVINCETOWN LIMITED: Shareholders Receive Wind-Up Report --------------------------------------------------------- On Jan. 15, 2013, the shareholders of Provincetown Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands REAL ESTATE: Shareholders Receive Wind-Up Report ------------------------------------------------ On Jan. 28, 2013, the shareholders of Real Estate Property Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Kiyohiko Ide Kamiyacho Central Place, 6th Floor 4-3-13 Toranomon, Minato-ku Tokyo 105-0001 Japan RHOMBUS CAPITAL: Members Receive Wind-Up Report ----------------------------------------------- On Feb. 14, 2013, the members of Rhombus Capital Overseas 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 Corporate Services Ltd. dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands SAHARA INVESTMENTS: Shareholders Receive Wind-Up Report ------------------------------------------------------- On Jan. 15, 2013, the shareholders of Sahara Investments Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands STANLEY HOLDINGS: Shareholders Receive Wind-Up Report ----------------------------------------------------- On Jan. 15, 2013, the shareholders of Stanley Holdings Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands TANAMERA HOLDINGS: Sole Member Receives Wind-Up Report ------------------------------------------------------ On Feb. 25, 2013, the sole member of Tanamera Holdings Limited received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Lion International Management Limited Craigmuir Chambers P.O. Box 71 Road Town, Tortola British Virgin Islands YMK INVESTMENTS: Shareholders Receive Wind-Up Report ---------------------------------------------------- On Jan. 15, 2013, the shareholders of YMK Investments Ltd. received the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands ============= J A M A I C A ============= DIGICEL GROUP: Seeks to Raise US$300 Million More in Bond Offer --------------------------------------------------------------- RJR News reports that Digicel Limited is seeking to raise another US$300 million via a bond offer for its operations in the Caribbean and Americas. This is effectively an extension of the US$1 billion capital raising completed by Digicel Limited earlier this month, according to RJR News. The report relates that the latest bonds have the same maturity date of April 15, 2021, and also carry a coupon of six per cent. RJR News notes that Digicel Limited has told investors that it plans to use the estimated US$297 million net proceeds for general corporate purposes, which could include capital expenditures, acquisitions, debt repayment or dividends to parent the Digicel Group which is 94% owned by Dennis O'Brien. Digicel Group, with regional headquarters in Jamaica, entered the Panama market in 2008. * * * As reported in the Troubled Company Reporter on Sept. 7, 2012, Moody's Investors Service assigned a Caa1 rating to Digicel Group Limited's proposed US$700 million senior unsecured notes due 2020. Net proceeds will be used to repurchase the entire tranche of the DGL 9.125%/9.875% senior PIK toggle notes due 2015 (US$415 million outstanding) and a portion of the 8.875% senior notes due 2015 (US$1 billion outstanding) via tender offers. =========== M E X I C O =========== MXMACFW 07-3U: Moody's Reviews Ratings for Possible Downgrade ------------------------------------------------------------- Moody's de Mexico has placed the ratings of MXMACFW 07-3U, a Mexican residential mortgage backed securitization (RMBS) sponsored by Proyectos Adamantine, S.A. de C.V., SOFOM, E.N.R., on review for possible downgrade. This rating action follows the recent placement on review for possible downgrade of the ratings of the financial guarantor MBIA Insurance Corporation (MBIA). The complete rating action is as follows: Issuer: HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo Financiero HSBC, Division Fiduciaria, acting solely as trustee. - MXMACFW 07-3U Class A, ratings of Caa2 (sf) (Global Scale, Local Currency) and Caa2.mx (sf) (Mexican National Scale) placed on review for possible downgrade; previously on Nov 21, 2012 (Global Scale, Local Currency) Downgraded to Caa2 (sf) and (Mexican National Scale) Downgraded to Caa2.mx (sf). The certificates' underlying ratings (reflecting the certificates' intrinsic credit quality absent the financial guarantee that MBIA provides) are Caa3 (sf) and Caa3.mx (sf). Ratings Rationale: MXMACFW 07-3U benefits from a financial guaranty insurance policy issued by MBIA Insurance Corp. that covers timely interest payment and ultimate principal payment by the legal final maturity date of the certificates. On March 21, 2013, Moody's placed on review for possible downgrade MBIA Insurance Corp.'s insurance financial strength rating of Caa2. The certificates' current ratings are consistent with Moody's practice of rating insured securities at the higher of (1) the guarantor's insurance financial strength rating and (2) the underlying ratings, which reflect the intrinsic credit quality of the certificates in the absence of the guarantee, and based on Moody's modified approach to rating structured finance securities wrapped by financial guarantors. In the case of MXMACFW 07-3U Class A, since MBIA's financial strength ratings are higher than the certificate' underlying ratings, the certificate's ratings are in line with MBIA's current ratings. The rating action did not impact the ratings of the following Mexican RMBS certificate that also benefits from an MBIA Insurance Corp. financial guarantee because its current ratings already reflect its underlying ratings, which are higher than MBIA Insurance Corp.'s ratings: - Hipotecaria Su Casita - Cross-border, Class A Insured Residential Mortgage Backed Floating Rate Notes, rated B3 on review for downgrade (sf) As part of evaluating the current ratings of MXMACFW 07-3U, Moody's also reviewed the certificates' underlying ratings, which are as follows: - MXMACFW07-3U Class A: Caa3.mx (sf), Caa3 (sf) Regarding the variability of MXMACFW07-3U Class A's ratings, any downgrades in MBIA insurance financial strength rating of Caa2 would result in at least a one notch downgrade in the ratings of the affected certificate. With respect to the underlying ratings, the primary sources of assumption uncertainty are related to the macroeconomic environment, the timing of recovery of the Mexican economy and labor market, and the severity of loss assumption given the limited market data related to historical recoveries for REOs. Moody's considered the servicer's practices and considers them adequate. Rating Methodology The methodologies used in this rating was "Moody's Approach to Rating Mexican RMBS" published in August 2012, and "Moody's Approach to Monitoring Residential Mortgage-Backed Securitizations in Mexico" published in August 2009. The current ratings on the certificates are consistent with Moody's practice of rating insured securities at the higher of (1) the guarantor's insurance financial strength rating and (2) the underlying ratings, based on Moody's modified approach to rating structured finance securities wrapped by financial guarantors. 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. * MEXICO: Moody's Confirms Jalisco State's B1 GS Rating ------------------------------------------------------- Moody's de Mexico has confirmed Jalisco's issuer ratings at Baa3.mx (Mexican National Scale) and B1 (Global Scale, local currency) and has assigned a negative outlook. This action concludes the review initiated on December 27, 2012, following a default on a MXN 1.4 billion short-term loan with Banco Interacciones. Moody's affirmed the Ba2 (Global Scale, local currency) and A2.mx (Mexico National Scale) debt ratings of the following four enhanced loans: - MXN1 billion enhanced loan from Banobras (original face value), with a maturity of 15 years and a pledge of 1.60% of its general fund participation revenues. - MXN665 million enhanced loan from Interacciones (original face value), with a maturity of 20 years and a pledge of 1.85% of its general fund participation revenues. - MXN650 million enhanced loan from Scotiabank (original face value) with a maturity of 15 years and a pledge of 1.24% of its general fund participation revenues. - MXN409 million enhanced loan from Santander (original face value) with a maturity of 20 years and a pledge of 0.59% of its general fund participation revenues. Moody's also affirmed the Ba3/Baa1.mx debt ratings of the following four enhanced loans: - MXN1.1 billion million enhanced loan from Banco del Bajio (original face value), with a maturity of 15 years and a pledge of 1.50% of its general fund participation revenues. - MXN632 million enhanced loan from Banorte (original face value), with a maturity of 20 years and a pledge of 0.80% of its general fund participation revenues. - MXN389 million enhanced loan from Banobras (original face value), with a maturity of 20 years and a pledge of 0.88% of its general fund participation revenues. - MXN374.7 million enhanced loan from Banorte (original face value), with a maturity of 20 years and a pledge of 0.38% of its general fund participation revenues. Ratings Rationale: Following a default on a MXN1.4 billion short-term loan with Banco Interacciones, a review was undertaken on Jalisco's issuer rating to a) evaluate the magnitude of losses suffered by the lender on the defaulted short-term loan, b) monitor debt service payments on other state debt obligations and c) assess the refinancing risks stemming from the right of some of Jalisco's lenders to accelerate or early amortize their loans. The ratings confirmation reflects: a) the full repayment, including all corresponding penalties and accrued amounts, of the short-term loan in January 17 2013, and b) the continued full and timely debt service payments on all other state debt obligations. In addition to the credit implications of the recent default, and the subsequent resolution that left the loan holder whole, the B1/Baa3.mx ratings take into account the state's weakening liquidity position. Net working capital to total expenditures declined to -6.1% in 2012 from -0.1% in 2011. The ratings also take into account a strong and diversified economy and moderate debt levels, with net direct and indirect debt equivalent to 22.3% of 2012 total revenues. The negative outlook reflects the potential refinancing risks, as well as, Jalisco's new public administration's challenges (in office since 1st March 2013) to improve treasury management practices. While Jalisco's lenders have not revealed their intention to accelerate or early amortize their loans, the number of lenders suggests that refinancing risks persist. Furthermore, the default showed weaknesses in the government's credit culture and treasury management. Accordingly, Moody's will assess the new administration's actions to reduce refinancing risks and measures to strengthen internal governance policies going forward. The affirmation of Jalisco's eight enhanced loan debt ratings reflect the confirmation of Jalisco's issuer ratings. What Could Change the Ratings Up/Down? Evidence that refinancing risks become negligible could lead us to revise the outlook back to stable. If Jalisco does not reduce refinancing risks and its liquidity position and treasury practices deteriorate, the issuer ratings could face downward pressure. Given the links between the eight enhanced loans and the credit quality of the obligor, an upgrade of the State of Jalisco's issuer ratings rating would likely result in an upgrade of the ratings on the enhanced loans. Conversely, a downgrade of Jalisco's issuer ratings could also exert downward pressure on the debt ratings of the loans. In addition, the ratings could face downward pressure if debt service coverage levels fall materially below Moody's expectations. 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. The principal methodologies used in this rating were Regional and Local Governments published on 18-Jan-2013, Enhanced Municipal and State Loans in Mexico published on 27-Jan-2011 and Mapping Moody's National Scale Ratings to Global Scale Ratings published on 9-Oct- 2012. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: Explores Code Sharing Deal With Air India ------------------------------------------------------------- RJR News reports that Caribbean Airlines Limited is continuing to explore prospects for a code sharing agreement with Air India. This was confirmed by the airline's Chairman Rabindra Moonan who said discussions with Air India officials are at an exploratory stage, according to RJR News. The report relates that the destinations being looked at are London and New York. A code share agreement allows two or more airlines to share the same flight, RJR News discloses. RJR News says that a seat can be purchased on one airline but is actually operated by a cooperating airline under a different flight number or code. The report relays that while admitting that it may take time before CAL and Air India come to an agreement, Mr. Moonan said it should not be allowed to linger. Caribbean Airlines Limited -- http://http://www.caribbean- airlines.com/ -- provides passenger airline services. It also specializes in the shipment of fresh cut flowers and packaged meats, hatching eggs, chocolates, fruits and vegetables, frozen and chilled fish, vaccines, newspapers, and magazines within the Caribbean, as well as to North America and Europe. * * * As reported in the Troubled Company Reporter on March 21, 2012, RJR News said that Caribbean Airlines Limited owes nearly US$30 million to Trinidad and Tobago's fuel provider National Petroleum. Trinidad Express said CAL enjoys a seven-day credit facility for aviation fuel from the company, according to RJR News. However, the report related that the airline has not been able to pay the full amount when invoiced and instead has been issuing partial payments to sustain the account. RJR News notes that Trinidad Express reported that the arrears were built up over the last six weeks as no payments have been made despite an attractive fuel subsidy which the airline has enjoyed since it began operations in January 2007. *********** 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 * * *