/raid1/www/Hosts/bankrupt/TCRLA_Public/130417.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, April 17, 2013, Vol. 14, No. 75
Headlines
A R G E N T I N A
FIDEICOMISO FINANCIERO: Moody's Assigns B3 Global Scale Rating
B E L I Z E
* BELIZE: Moody's Lifts Bond Rating to Caa2 With Stable Outlook
B O L I V I A
COMPANIA DE SEGUROS: Low Profits Prompt Moody's to Cut IFS to B3
SEGUROS ILLIMANI: Moody's Affirms Caa1 IFS Rating
B R A Z I L
AES TIETE: Moody's Affirms Ba1 Rating on Subordinated Debentures
CONSTRUTORA ANDRADE: Moody's Rates New $500MM Notes Issue 'Ba1'
UBS AG: Plans to Cut 60 Jobs in Brazil as Part of Restructuring
C A Y M A N I S L A N D S
3DCO OFFSHORE: Shareholders to Hear Wind-Up Report on April 25
ACTIVE DEVELOPER II: Shareholder Receives Wind-Up Report
BBH INTERNATIONAL: Shareholder Receives Wind-Up Report
BJC FUND: Shareholders to Hear Wind-Up Report on April 25
BJC HEALTHCARE: Shareholders to Hear Wind-Up Report on April 25
CB RUSSIA: Members Receive Wind-Up Report
FMCP VOLATILITY: Members Receive Wind-Up Report
FMIM LONG: Members Receive Wind-Up Report
GATE SME CLO: Shareholders to Hear Wind-Up Report on April 18
HOKURIKU INTL.: Shareholders to Hear Wind-Up Report on April 18
MANDARIN IT: Shareholders Receive Wind-Up Report
MTONE LIMITED: Shareholders Receive Wind-Up Report
NIGERIA MEDIA: Sole Member Receives Wind-Up Report
ORIENTAL AND PACIFIC: Shareholders Receive Wind-Up Report
PETERSHAM ESTATES: Shareholders Receive Wind-Up Report
RESORT DEVELOPMENT: Sole Shareholder Receives Wind-Up Report
WIIG-TDF: Shareholders Receive Wind-Up Report
D O M I N I C A N R E P U B L I C
* DOMINICAN REPUBLIC: S&P Assigns 'B+' Rating to US$1BB Bond
* DOMINICAN REPUBLIC: Fitch Assigns 'B' Rating to New US$1BB Bond
J A M A I C A
CIBONEY GROUP: Posts J$205,000 in Profits
P E R U
* PERU: Moody's Sees Strong Performance for Banks
T R I N I D A D & T O B A G O
CARIBBEAN AIRLINES: To Cut More Jobs at Jamaican Operations
CL FIN'L: To Sell Burn Stewart to Distell for US$244 Million
X X X X X X X X
* LATIN AMERICA: Moody's Outlook on Telecoms is Stable
- - - - -
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A R G E N T I N A
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FIDEICOMISO FINANCIERO: Moody's Assigns B3 Global Scale Rating
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Moody's Latin America assigned a rating of A2.ar (national scale
rating) and B3 (global scale, local currency) to the private Class
A and Class B Debt Securities (VRDA and VRDB) of Fideicomiso
Financiero EISA/VIALNOA, a financial trust established in
Argentina. The private debt securities will be issued by Nacion
Fideicomisos S.A., acting solely as issuer and trustee.
Ratings Rationale:
The ratings are based mainly on the following factors:
- The irrevocable and unconditional guaranty provided by
Electroingenieria S.A. ("EISA") (rated B3/A3.ar), one of the
sellers in the transaction, that covers timely payment of
principal and interest on the rated securities, and trust expenses
and taxes.
- The assignment of certain underlying assets -receivables from a
contract relating to supporting the operation of a power
generation plant and certain toll-road receivables- to the issuing
trust. These underlying assets also benefit the rated securities,
but they are linked to the performance risk of EISA and Vialnoa, a
company controlled by EISA.
- The availability of a reserve fund equivalent to two principal
payments.
Moody's ratings are primarily based on the guaranty provided by
EISA, which covers interest and principal payments on the rated
securities. The national scale rating on the debt securities
(A2.ar) is one notch higher than EISA's national scale rating
(A3.ar), as the transaction will also benefit from the assignment
of certain future cash flows. Moody's notes that the future cash
flows are highly linked to the performance risk of EISA, under the
O&M agreement of Central Pilar and of Vialnoa, as concessionaire
of the toll-road agreement.
Therefore, any future change in the rating of the guarantor may
lead to a change in the rating assigned to this transaction. The
rating addresses the payment of interest and principal on or
before the legal final maturity date of the securities.
The trust assets will include two future cash flows:
i) EISA will assign to the trust certain rights under the
operation and maintenance agreement (O&M) of the "Central Pilar"
thermo-electrical power plant.
ii) Vialnoa, a company controlled by EISA, will assign certain
rights under the toll-road concession agreement of Highway Nø 7
(Corredor Vial Nø 7).
Central Pilar
The Central Bicentenario - Central Termica Ciclo Combinado Pilar
(Central Pilar) is a combined cycle thermoelectric power plant
located in the Province of Cordoba, Argentina. The power plant is
owned by the Provincial Energy Company of the Province of Cordoba
(EPEC) currently rated B3/Baa2.ar.
Central Pilar was constructed by the consortium EISA-SENER (80%
owned by EISA) as a "turnkey" project which included: preliminary
studies, general project and detail, construction and assembly,
rollout and final trials. The combined cycle of Central Pilar
obtained final authorization to operate in February, 2012. The
plant can generate up to 465 MW under normal conditions.
Additionally, EISA was awarded by public bidding the O&M Agreement
for the plant. EISA will assign to the issuing trust its rights
over the "local component" of the O&M Agreement, which includes
fixed and variable amounts in local and foreign currency. The
variable amounts are related to the actual number of hours that
the plant is generating energy for the system.
Payments under the O&M Agreement are made to an Administration
Trust, which receives payments from CAMMESA, the wholesale
electricity market's administration company.
Corredor Vial Nø 7
Vialnoa will assign certain rights under the concession agreement
of toll road Highway Nø 7 (Corredor Vial Nø 7). The National
Highway Administration granted the concession of Highway Nø 7 to
Vialnoa for 6 years in April 2010.
The trust will have the right to receive the following items under
the concession agreement: i) toll-road revenues, and ii) 75% of
the OMSA (Maintenance Work and Support Services), payments made by
the National Highway Administration (which include remuneration
for towing services, technical assistance, hard shoulder repairs
and lighting).
To evaluate the sufficiency of the assigned cash flows under
several stress scenarios, Moody's used a deterministic cash flow
model which includes many deal-specific characteristics (i.e.
power plant availability, rates under the O&M Agreement, traffic
and price assumptions for the toll-road, among others). According
to this analysis, the transaction can withstand up to a 55%
reduction in the expected cash flows, without any draws from
EISA's guaranty.
The methodologies used in this rating were Mapping Moody's
National Scale Ratings to Global Scale Ratings published in
October 2012, and Rating Transactions Based on the Credit
Substitution Approach: Letter of Credit backed, Insured and
Guaranteed Debts published in March 2013.
Moody's National Scale Credit 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 credit 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.
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B E L I Z E
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* BELIZE: Moody's Lifts Bond Rating to Caa2 With Stable Outlook
---------------------------------------------------------------
Moody's Investors Service has upgraded Belize's government bond
rating to Caa2 from Ca. The rating outlook is stable.
The upgrade balances an improvement in the government's liquidity
position following a pre-emptive restructuring of its external
commercial debt, against a debt overhang that was not cured by the
default and continues to impair Belize's credit solvency.
Ratings Rationale:
Last month, Belize restructured its sole foreign currency bond,
the $ 547 million "Superbond" due in 2029. The distressed debt
exchange concluded Belize's second default since 2006.
While the restructuring should provide temporary liquidity relief,
Moody's sees it as insufficient in addressing Belize's debt
overhang.
The restructuring reduced the government's medium-term debt
servicing costs due to lower interest rates on the new bond, which
declined from 8.5% to a step-up coupon rate of 5% between 2013-17
and 6.8% from 2017 through maturity in 2038. Other elements of the
exchange included (i) a 10-year extension of maturity, and (ii) a
reduction of the face value of the bond to $529.9 million, which
was equivalent to a net reduction of 2.9%, resulting from a 10%
nominal haircut partly offset by capitalized interest on two
missed payments.
Moody's expects a combination of structural factors to constrain
the rating in the Caa space for the next 2-4 years, indicating a
relatively elevated likelihood of default recidivism:
- Belize's track record of two defaults in the past seven years
corroborates the country's low debt tolerance and signals a weak
institutional willingness and ability to service external debt;
- Government debt on the order of 70% of GDP, coupled with limited
fiscal and foreign exchange buffers, impairs the outlook for
economic growth post-restructuring leaving Belize vulnerable to
shocks that could lead to an abrupt decrease in government
creditworthiness;
- Debt servicing capacity will likely decline as Belize's limited
oil reserves are exhausted -- at the current rate of depletion oil
exports will decline to 1-2% of GDP from a high of 11% of GDP in
2011 impairing both fiscal revenues and foreign exchange earnings;
- Claims stemming from the nationalization of two utilities
between 2009 and 2011, currently in litigation, could crystallize
into fiscal liabilities large enough to trigger another default;
- Contingent liabilities stemming from a weak banking sector that
faces degraded capital buffers and profitability given poor credit
quality and under-provisioning for impaired loans.
There is a potential for an escalation of credit risks in the
coming years. In Moody's opinion, the government will find it
progressively more difficult to maintain fiscal discipline as
demand ratchets up for increased public sector wage hikes, social
transfers, and capital investment. Also, the debt service on the
US dollar bond will escalate due to an increase in the coupon rate
in 2017 and amortization payments that are set to start in 2019.
Faced with rising financing needs, a pre-emptive debt
restructuring could once again become an attractive alternative
for policymakers, particularly in 2017, the year the next general
election is set to take place.
What Could Change The Rating Up
Positive rating pressure could develop if the government rebuilds
a medium-term track record of servicing external debt and if it is
able to maintain fiscal discipline through the election in 2017.
The discovery of new commercially viable oil/gas reserves that
arrest the decline of the oil industry could also enhance the
ratings outlook.
What Could Change The Rating Down
The crystallization of sizeable contingent liabilities from
compensation claims related to recent nationalizations, a banking
crisis that requires a government-financed bailout, or defaults on
debt held by public sector corporations, would put downward
pressure on the rating. Also, in the absence of market access,
abrupt changes in the availability of development grants and
concessional financing from bilateral (Taiwan and Venezuela) and
multilateral sources (primarily the Caribbean and Inter-American
Development Banks) may lead to result in a liquidity crunch that
could trigger a downgrade.
Ceilings
As part of this rating action, Moody's has made the following
adjustments to country ceilings for corporate and structured
ratings:
Local Currency Bond Ceiling -- B2 (unchanged)
Local Currency Deposit Ceiling -- B2 (unchanged)
Foreign Currency Bond Ceiling -- B2 (from Caa2)
Foreign Currency Deposit Ceiling -- Caa3 (from Caa2)
The local currency country risk ceiling reflects the maximum
credit rating achievable in local currency for a debt issuer
domiciled in Belize. The foreign currency bond and deposit
ceilings reflect foreign currency transfer and convertibility
risks. In Moody's view, a moratorium on debt payments in foreign
currency is unlikely to materialize unless the viability of
Belize's exchange rate peg to the US dollar is threatened, which
Moody's sees as an unlikely scenario in the next 1-2 years given a
modest current account deficit and adequate foreign exchange
reserves.
Methodology
The principal methodology used in this rating was "Sovereign Bond
Ratings Methodology" published in September 2008. Rating ceilings
were set in accordance with "Local Currency Country Risk Ceiling
for Bonds and Other Local Currency Obligations" published in March
2013.
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B O L I V I A
=============
COMPANIA DE SEGUROS: Low Profits Prompt Moody's to Cut IFS to B3
----------------------------------------------------------------
Moody's Latin America has downgraded Compania de Seguros y
Reaseguros Fortaleza S.A.'s global local-currency insurance
financial strength (IFS) rating to B3 from B2 and has lowered the
insurer's IFS rating on Bolivia's national scale (NS) to A1.bo
from Aa3.bo.The ratings' outlooks are both stable following the
downgrade.
Fortaleza is a Bolivian property and casualty insurer that is
privately owned by a local family, and is part of a local
financial conglomerate that includes affiliates engaged in the
brokerage, banking, finance and leasing businesses. The company is
focused primarily on motor and surety insurance, although it is
also diversified across other segments including fire, engineering
and cargo, among others.
Ratings Rationale:
According to Moody's, the downgrade of Fortaleza's ratings is
based on the company's much lower profitability profile as a
result of the change in the company's reinsurance program since
2012, which has much lower profit sharing for the company than the
previous reinsurance contract. According to Diego Nemirovsky, lead
analyst for Fortaleza, "The company's previously strong
profitability, reflected by an average return on capital of 24%
over the past 5 years, declined to breakeven results in 2012, and
we expect profitability to remain at a much lower level than in
the past". The rating agency went on to say that, given
profitability is the primary source of internal capital
generation, capital adequacy is also negatively impacted.
Moody's also noted the company's asset-quality risk as a credit
challenge, given its significant investments in speculative grade
assets such as Bolivian sovereign bonds and local bank deposits --
a characteristic common to most Bolivian insurers -- as well as
real estate. Other concerns noted include its high business
concentration in the surety and motor segments and the company's
poor historical reserve adequacy.
Among the factors that could result in a further rating downgrade
for Fortaleza are additional deterioration in its profitability
(i.e.: return on capital consistently below 5%) and capital
adequacy (gross underwriting leverage steadily above 8x), or a
significant worsening in investment credit quality. Conversely,
Fortaleza's ratings' could be upgraded if the company is able to
restore previous profitability levels or through a combination of
improved reserve adequacy, further product diversification, and
strengthened market presence.
The principal methodology used in this rating was Moody's Global
Rating Methodology for Property and Casualty Insurers published in
May 2010.
Based in Santa Cruz, Bolivia, Fortaleza reported a net loss of
BOB34,468 and gross premiums written of BOB139 million for the
fiscal year ended on December 31, 2012. Total assets were BOB124
million and shareholders' equity of BOB 36 million as of year-end
2012.
SEGUROS ILLIMANI: Moody's Affirms Caa1 IFS Rating
-------------------------------------------------
Moody's Latin America affirmed Seguros Illimani's Caa1 insurance
financial strength (IFS) rating on the global local-currency
scale, as well as its Baa2.bo IFS rating on Bolivia's national
scale. Both ratings have a stable outlook.
Seguros Illimani, which is privately-owned by a local businessman,
is a Bolivian property and casualty insurer, focused primarily on
mandatory automobile accident-liability insurance ("SOAT", for its
Spanish acronym).
Ratings Rationale:
Moody's noted that Seguros Illimani's ratings affirmation reflects
the company's generally stable, but overall modest credit profile,
characterized by its relatively weak business and financial
fundamentals in comparison with other insurers' in the Bolivian
marketplace, as well as on a global basis. Key concerns are
Seguros Illimani's comparatively high product risk profile, small
capital base, weak market presence, and volatile profitability --
the last factor having been clearly highlighted by net losses
reported in past years,. The rating agency went on to say that the
company's credit profile has also been negatively impacted by its
market size; Seguros Illimani is the smallest participant in
Bolivia's concentrated property and casualty market, holding a
share of less than 3% of the industry's gross premiums in 2012.
Moody's lead analyst Diego Nemirovsky commented: "The company's
lack of product diversification and its high concentration in the
SOAT market is a key negative consideration for Seguros Illimani's
credit profile."
Moody's noted, however, that Seguros Illimani is a long-standing
traditional insurance company in the marketplace, including being
one of the leading SOAT coverage providers over the course of many
years. Although the current competitive SOAT market has
experienced poor results in the past, the market's mandatory
nature provides some stability in the company's business volume,
allowing for the possibility of performance improvement; in fact,
profitability in 2012 improved significantly over previous years,
with a return on capital of 12.5%.
Among the factors that could result in a rating downgrade for
Seguros Illimani, Moody's mentioned an impairment in the company's
capitalization (i.e.: increase in its gross underwriting leverage
to above 7x), a sustained track record of net losses, or
deterioration of already modest market presence. Conversely,
Seguros Illimani's ratings' could be upgraded if the company is
able to sustain profitability (i.e.: return on capital
consistently higher than 5%), or if the company increases its
product diversification, with lines other than SOAT accounting for
at least one-third of total premiums.
Based in La Paz, Seguros Illimani reported a net profit of BOB2.7
million, and gross premiums written of BOB52 million for the
fiscal year ended December 2012. Total assets were BOB88 million
and shareholders' equity was BOB 23 million as of year-end 2012.
Moody's insurance financial strength ratings are opinions of the
ability of insurance companies to pay punctually senior
policyholder claims and obligations.
The principal methodology used in this rating was Moody's Global
Rating Methodology for Property and Casualty Insurers published in
May 2010.
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.
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B R A Z I L
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AES TIETE: Moody's Affirms Ba1 Rating on Subordinated Debentures
----------------------------------------------------------------
Moody's America Latina assigned Baa3 and Aa1.br ratings on the
global scale and on the Brazilian National Scale Rating (NSR),
respectively, to the BRL498 million senior, unsecured debentures
that are planned to be issued by AES Tiete S.A. in the next few
weeks.
At the same time, Moody's affirmed AES Tiete's Baa3 / Aa1.br
issuer ratings on the global and national scales, respectively.
In addition, Moody's affirmed the Ba1/Aa2.br ratings of the
Company's outstanding subordinated debentures, which mature in
April 2015, and the Baa3/Aa1.br ratings of the BRL498 million
commercial paper issued in March 2013, which will be prepaid with
the funds raised with the aforementioned BRL498 million debentures
issuance. The outlook is stable for all ratings.
Ratings Rationale:
The Baa3 issuer rating reflects AES Tiete's strong credit metrics
for the rating category, primarily as a result of its stable and
predictable cash flows derived from the power purchase agreement
(PPA) that has been executed with its affiliate Eletropaulo
Metropolitana Eletricidade de Sao Paulo S.A. (Baa3/Aa1.br; stable
outlook). However, the ratings are constrained by the following
factors: (i) the contractual obligation (pursuant to the
privatization process) to increase the Company's installed
generation capacity by 15% in the State of Sao Paulo; (ii) the
concentration on one single off-taker (Eletropaulo); (iii) the
track record of high dividend distributions; (iv) significantly
lower operating cash flows and margins starting in 2016, following
the expiration of the above market PPA with Eletropaulo; and (vi)
the Company's liquidity position potentially coming under pressure
as a result of adverse hydrology conditions in the country.
The Aa1.br national scale rating reflects the standing of the
company's credit quality relative to its domestic peers.
The Ba1/Aa2.br ratings of the subordinated debentures, which
mature in April 2015, are one notch lower than AES Tiete's issuer
ratings to reflect the subordination features of these debentures.
At the time of the issuance of the subordinated debentures,
Brazilian Corporate Law determined that any debt that exceeded the
Company's equity capital was required to be subordinated to any
other existing or future debt. This provision no longer exists in
said law. Nevertheless, these debentures will continue to be
subordinated to the outstanding commercial paper until it is
prepaid, and thereafter will be subordinated to the new senior
unsecured debentures, which will take-out the commercial paper.
The stable outlook reflects Moody's opinion that, in the short and
medium term, AES Tiete will maintain credit metrics in line with
the Baa3 rating category, as well as continue to have good access
to the local capital and bank markets which will enable it to
maintain a healthy liquidity position. Moody's also expects that
AES Tiete will maintain its high dividend distribution policy, and
that the potential additional capital investment, which could
result from the obligation with the state government of Sao Paulo,
would most likely be funded with long-term debt at attractive
terms from the BNDES.
The debentures, which will be placed on a "restricted-efforts"
basis, are expected to be used by the Company to prepay the
outstanding six-month commercial paper (BRL498 million) which was
issued in March 2013 (the "CP"), hence replacing short-term with
longer term debt. As originally intended when the Company issued
the CP, the proceeds have been used to pay the first installment
of the subordinated debentures (BRL300 million); the remaining
BRL198 million will be used to finance the refurbishment of the
Company's generating fleet. Pursuant to Instruction CVM476, the
Company is not required to file the documentation of the senior
unsecured debentures at the Comissao de Valores Mobiliarios (CVM).
However, the Company has committed to providing to Moody's the
final supplement of the issuance so that Moody's can ascertain
that there were no material changes to the terms presented to
Moody's for the rating of said debentures.
In addition to the financial covenants of the outstanding
subordinated debentures (Gross Debt-to-EBITDA equal or less than
2.5; EBITDA-to-Interest Expense equal or higher than 1.75 times),
the debentures' indenture will contain the following financial
covenants, which are identical to the covenants of the outstanding
CP: (i) Net Debt-to-EBITDA equal or less than 3.5; (ii) EBITDA-to-
Interest Expense equal or higher than 1.75 times.
A rating upgrade would require that the following take place: (i)
a resolution favorable to the Company regarding the ongoing
negotiation with the Sao Paulo State government with regard to the
aforementioned capacity expansion; (ii) the maintenance of strong
credit metrics and liquidity; and (iii) after 2015, the execution
of new PPAs on terms and conditions that will allow the Company to
maintain credit metrics in line with its current rating category.
A rating downgrade could be triggered with the deterioration of
AES Tiete's credit metrics so that (CFO pre-WC)-to-(Total Debt)
falls below 20%, and interest coverage drops below 3.5 times for
an extended period of time. The occurrence of any event that
materially affects the Company's liquidity could also prompt a
downgrade action.
The principal methodology used in this rating was Unregulated
Utilities & Power Companies (August 2009).
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.
AES Tiete S.A. is one of the largest electricity generation
companies in Brazil. The Company is directly controlled by
Companhia Brasiliana de Energia ("Brasiliana"), a holding company
controlled by The AES Corporation (Ba3/stable), which holds 50%
plus one share of Brasiliana's voting capital and 46.15% of its
total capital. The Brazilian Federal Development Bank - BNDES owns
the remaining 50% less one share of Brasiliana's voting capital
(53.85% of its total capital). Brasiliana, in turn, controls AES
Tiete by holding 71.35% of its voting capital.
AES Tiete's generating fleet is composed exclusively by
hydroelectric power plants, with total installed capacity of 2,658
MW, equivalent to around 2.5% of the country's electricity
capacity. The Company operates its fleet pursuant to a 30-year
concession, which was granted in December 1999. Approximately 100%
of the electricity from AES Tiete (1,268 MW average) has been
committed via a Power Purchase Agreement (PPA) with Eletropaulo
Metropolitana Eletricidade de Sao Paulo S.A. ("Eletropaulo"), an
affiliate also controlled by Brasiliana. The PPA expires on
December 31, 2015. In the last twelve months ended on December 31,
2012, AES Tiete reported net sales of BRL2,112 million, EBITDA of
BRL1,577 million, and net profit of BRL901 million (adjusted for
unusual and non-recurring items), according to Moody's standard
adjustments. These metrics are up 12%, 4% and 7% (rounded
percentages), respectively, from 2011 fiscal year.
CONSTRUTORA ANDRADE: Moody's Rates New $500MM Notes Issue 'Ba1'
---------------------------------------------------------------
Moody's Investors Service assigned a first-time Ba1 corporate
family rating to Construtora Andrade Gutierrez S.A. and a Ba1
global scale rating to its proposed up to $500 million senior
unsecured 5 to 10 year notes, to be issued by Andrade Gutierrez
International S.A. and guaranteed by CAG.
The net proceeds will be used to pay debt maturing in 2013 and
2014. The rating of the notes and the stable outlook assume that
the final transaction documents will not be materially different
from draft legal documentation reviewed by Moody's to date and
assume that these agreements are legally valid, binding and
enforceable.
Ratings Rationale:
CAG's Ba1 rating reflects the company's size and scale in the
Latin American construction market, as the second largest
construction company in Brazil and one of the largest of Latin
America; its know-how in the local and international markets and
the company's good financial and risk control mechanisms. The
ratings are further supported by CAG's historically low leverage
and solid liquidity, sufficient to cover all outstanding debt
within the company. The rating also reflects CAG's solid track
record of execution and strong backlog, equivalent to 4.0 years of
revenues, as well as the positive fundamentals for the heavy
construction industry and infrastructure investments in Brazil.
CAG's adequate corporate governance standards are factored in the
ratings.
Credit negatives include the recent deterioration in credit
metrics, related to lower profitability and increased level of
guarantees provided to other companies within the group, small
size compared to its global peers, and backlog and revenue
concentration in Brazil and Latin America, especially Venezuela.
CAG's exposure to high political risks countries also constrains
the ratings, although Moody's acknowledges the company's efforts
to reduce financial and execution risks of operating in these
markets through BNDES financing and working with resources
guaranteed by multilateral and international organizations. CAG's
backlog concentration in the public sector is an additional credit
negative.
The stable outlook is based on Moody's expectations that CAG will
benefit from the strong fundamentals of the Brazilian construction
sector, while maintaining a strong liquidity position and lower
leverage ratios. The outlook also incorporates Moody's
expectations that CAG's profitability will return to historical
levels from 2013 onwards.
The rating or outlook could face upward pressure in case CAG is
able to diversify its market presence towards countries with low
political risks, while maintaining low leverage ratios and a
strong liquidity position. Quantitatively, the ratings or outlook
could be upgraded if CAG's adjusted leverage (as measured by Total
Adjusted Debt to Ebitda) remains below 2.75 times (5.2x as of
December 2012) and if adjusted Funds From Operations to Debt
remains above 35% on a sustainable basis (11% as of December
2012).
Conversely, CAG's ratings could be downgraded if company's credit
metrics do not recover by the end of 2013, or deteriorate further.
Additional negative pressures would also arise if company's total
adjusted debt (as measured by Total Adjusted Debt to Ebitda)
remains above 4.25 times for an extended period of time, or if
company's internal cash generation is insufficient to cover a
substantial part of the company's total debt, with Funds From
Operations to Debt below 20% without expectation of improving in
the long term. A liquidity deterioration that results in a sudden
cash drain for CAG would also trigger a downgrade.
The principal methodology used in this rating was the Global
Construction Industry Methodology published in November 2010.
Headquartered in Belo Horizonte, Construtora Andrade Gutierrez is
the second largest construction company in Brazil, having reported
BRL 7.7 billion in revenues in 2012, and one of the main
subsidiaries of Andrade Gutierrez S.A. The company operates in 20
different countries in Latin America, Europe, Africa, and Asia.
The company's current backlog includes hydro power plants, basic
infrastructure projects, industrial and civil construction, and
oil and gas projects. At December 2012, Construtora Andrade
Gutierrez had over 67,000 employees worldwide.
Andrade Gutierrez S.A. is one of the largest infrastructure
conglomerates in Brazil, with net revenues of around BRL 13.0
billion in 2012. In addition to engineering and heavy
construction, the Andrade Gutierrez Group holds 65.0% of Andrade
Gutierrez Telecom S.A., one of the main shareholders of the
Telemar group (rated Ba1, negative) and Contax (unrated), and,
through Andrade Gutierrez Participacoes S.A., holds a 97.8% stake
in AG Concessoes S.A., one of the main shareholders of CCR (rated
Ba1, stable), Cemig (rated Ba1, negative), Sanepar ( rated Ba2,
stable) and other infrastructure investment companies in Brazil.
UBS AG: Plans to Cut 60 Jobs in Brazil as Part of Restructuring
---------------------------------------------------------------
Francisco Marcelino & Cristiane Lucchesi at Bloomberg News report
that three unnamed sources said UBS AG will fire as many as 60
employees in Brazil as part of its international restructuring
plan.
The dismissals will affect staff in investment banking,
operations, back office, broker dealer, fixed income and
commodities and be announced in coming weeks, said one person, who
requested anonymity because the plans aren't public, according to
Bloomberg News.
The Zurich-based bank, which has 220 workers in Brazil, aims to
add people to its wealth-management division in the South American
country, two people said, Bloomberg News discloses.
Sylvia Coutinho, who heads retail banking and wealth management in
Latin America for HSBC Holdings Plc (HSBA), is the leading
candidate to replace local Chief Executive Officer Lywal Salles,
who will retire, two people said, Bloomberg News notes.
Bloomberg News recalls that Mr. Salles was hired in October 2010
under a two-year contract to build a local subsidiary for UBS and
agreed to stay until the government authorized the company to open
a bank in the country. That happened in January.
Bloomberg News adds that UBS said in October it will cut 10,000
jobs worldwide as part of a plan to focus on wealth management and
boost profitability.
UBS AG is a Swiss bank.
==========================
C A Y M A N I S L A N D S
==========================
3DCO OFFSHORE: Shareholders to Hear Wind-Up Report on April 25
--------------------------------------------------------------
The shareholders of 3DCO Offshore Ltd. will receive on April 25,
2013, at 1:30 p.m., the liquidator's report on the company's wind-
up proceedings and property disposal.
The company's liquidator is:
Mervin Solas
c/o Maples Liquidation Services (Cayman) Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102
Cayman Islands
ACTIVE DEVELOPER II: Shareholder Receives Wind-Up Report
--------------------------------------------------------
The shareholder of Active Developer II Company received on
March 29, 2013, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue
George Town Grand Cayman, KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 914 3115
BBH INTERNATIONAL: Shareholder Receives Wind-Up Report
------------------------------------------------------
The shareholder of BBH International: Equity Master Fund (Cayman),
Ltd. received on March 29, 2013, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidators are:
Intertrust Corporate Services (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Jennifer Chailler
Telephone: (345) 914 3115
BJC FUND: Shareholders to Hear Wind-Up Report on April 25
---------------------------------------------------------
The shareholders of BJC Healthcare Fund Ltd. will receive on
April 25, 2013, at 1:00 p.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Mervin Solas
c/o Maples Liquidation Services (Cayman) Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102
Cayman Islands
BJC HEALTHCARE: Shareholders to Hear Wind-Up Report on April 25
---------------------------------------------------------------
The shareholders of BJC Healthcare Erisa Fund Ltd. will receive on
April 25, 2013, at 1:10 p.m., the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Mervin Solas
c/o Maples Liquidation Services (Cayman) Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102
Cayman Islands
E-mail: mervin.solas@maplesfs.com
CB RUSSIA: Members Receive Wind-Up Report
-----------------------------------------
The members of CB Russia Absolute Return Fund received on
March 25, 2013, 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
FMCP VOLATILITY: Members Receive Wind-Up Report
-----------------------------------------------
The members of FMCP Volatility Master Fund Limited received on
March 20, 2013, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Krys Global VL Services Limited
Declan Magennis
Declan.Magennis@KRyS-Global.com
Governor's Square, Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 21237 Grand Cayman KY1-1205
Cayman Islands
Telephone: +1 (345) 947 4700
Facsimile: +1 (345) 946 6728
FMIM LONG: Members Receive Wind-Up Report
-----------------------------------------
The members of FMIM Long Short Equity Relative Value Master Fund
Limited received on March 20, 2013, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Krys Global VL Services Limited
Declan Magennis
Declan.Magennis@KRyS-Global.com
Governor's Square, Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 21237 Grand Cayman KY1-1205
Cayman Islands
Telephone: +1 (345) 947 4700
Facsimile: +1 (345) 946 6728
GATE SME CLO: Shareholders to Hear Wind-Up Report on April 18
-------------------------------------------------------------
The shareholders of Gate SME CLO 2004-2A First Loss, Ltd. will
receive on April 18, 2013, at 10:10 a.m., the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Marc Randall
c/o Maples Liquidation Services (Cayman) Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102
Cayman Islands
E-mail: natasha.morgan@maplesfs.com
HOKURIKU INTL.: Shareholders to Hear Wind-Up Report on April 18
---------------------------------------------------------------
The shareholders of Hokuriku International Cayman Limited will
receive on April 18, 2013, at 10:00 a.m., the liquidator's report
on the company's wind-up proceedings and property disposal.
The company's liquidator is:
Marc Randall
c/o Maples Liquidation Services (Cayman) Limited
PO Box 1093, Boundary Hall
Grand Cayman KY1-1102
Cayman Islands
E-mail: natasha.morgan@maplesfs.com
MANDARIN IT: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of Mandarin IT Fund II received on March 19,
2013, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidators are:
Bin Huang
Qinglin Na
Unit 1608, West Tower
Shun Tak Centre
168-200 Connaught Road Central
Hong Kong
MTONE LIMITED: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Mtone Limited received on March 20, 2013, the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Appleby Trust (Cayman) Ltd
Clifton House, 75 Fort Street
PO Box 1350 Grand Cayman KY1-1108
Cayman Islands
NIGERIA MEDIA: Sole Member Receives Wind-Up Report
--------------------------------------------------
The sole member of Nigeria Media Holdings Limited received on
March 26, 2013, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Emmanuel Assiak
Plot 1684
Sanusi Fafunwa Street
Victoria Island
Lagos Nigeria
ORIENTAL AND PACIFIC: Shareholders Receive Wind-Up Report
---------------------------------------------------------
The shareholders of The Oriental and Pacific Steam Company
received on March 25, 2013, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
MBT Trustees Ltd.
Telephone: 945-8859
Facsimile: 949-9793/4
P.O. Box 30622 Grand Cayman KY1-1203
Cayman Islands
PETERSHAM ESTATES: Shareholders Receive Wind-Up Report
------------------------------------------------------
The shareholders of Petersham Estates Limited received on
March 25, 2013, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Matthew Wright
c/o Omar Grant
Telephone: (345) 949 7576
Facsimile: (345) 949 8295
P. O. Box 897
Windward 1, Regatta Office Park
Grand Cayman KY1-1103
Cayman Islands
RESORT DEVELOPMENT: Sole Shareholder Receives Wind-Up Report
------------------------------------------------------------
The sole shareholder of Resort Development Resources Limited
received on March 29, 2013, the liquidator's report on the
company's wind-up proceedings and property disposal.
The company's liquidator is:
Commerce Corporate Services Limited
PO Box 694 Grand Cayman
Cayman Islands
Telephone: 949 8666
Facsimile: 949 0626
WIIG-TDF: Shareholders Receive Wind-Up Report
---------------------------------------------
The shareholders of WIIG-TDF Partners LLC received on March 26,
2013, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company's liquidators are:
Loo Hock Voon
c/o Maples and Calder, Attorneys-at-law
PO Box 309, Ugland House
Grand Cayman KY1-1104
Cayman Islands
===================================
D O M I N I C A N R E P U B L I C
===================================
* DOMINICAN REPUBLIC: S&P Assigns 'B+' Rating to US$1BB Bond
------------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'B+' issue
rating to the Dominican Republic's US$1 billion bond due in 2024.
S&P's 'B+/B' foreign currency and 'B+/B' local currency sovereign
credit ratings on the Dominican Republic remain unchanged. The
outlook on the long-term ratings remains stable.
The ratings on the Dominican Republic reflect the country's weak
institutions and the politicization and opaqueness of decision-
making, which lessen the predictability and effectiveness of the
government's policies. These inefficiencies result in low tax
collection (because of widespread tax evasion and excessive tax
exemptions) and weak competitiveness as a result of bureaucracy,
corruption, and slow progress in reforming the electricity sector,
among other things. Supporting the ratings are the ongoing
commitment to correcting fiscal and structural inefficiencies,
solid growth potential stemming from the country's well-
diversified economy, improving export prospects, and strengthened
debt management.
The stable outlook reflects the Dominican Republic's solid growth
and export prospects and S&P's expectation that the government
will continue its efforts to reduce fiscal deficits. S&P balances
these strengths against the risk of fiscal and external
deterioration if the government does not implement corrective
measures in a timely manner. Addressing the structural
deficiencies in the electricity sector, improving tax system
efficiency, and strengthening the external profile would benefit
the sovereign's creditworthiness.
On the other hand, fiscal slippage, which would likely exacerbate
the external vulnerability, would be a negative factor and could
lead to a downgrade, especially if the government is unwilling to
reverse the slippage. Any changes in the Petrocaribe concessional
financing would also be a negative rating factor.
RATINGS LIST
Dominican Republic
Sovereign Credit Rating B+/Stable/B
New Rating
US$1 bil. bond due 2024 B+
* DOMINICAN REPUBLIC: Fitch Assigns 'B' Rating to New US$1BB Bond
-----------------------------------------------------------------
Fitch Ratings has assigned a 'B' rating to the Dominican
Republic's USD1 billion global bond issuance maturing in April
2024. The bonds have a coupon rate of 5.875%.
The receipts from this issuance will be used to cover budgetary
requirements in 2013.
KEY RATING DRIVERS
The rating is in line with The Dominican Republic's Long-term
Foreign Currency Issuer Default Rating (IDR) of 'B', which has a
Stable Outlook.
RATING SENSITIVITIES
The rating would be sensitive to any changes in the Dominican
Republic's Long-term foreign currency IDR. Fitch affirmed
Dominican Republic's ratings at 'B' and revised the Outlooks to
Stable from Positive on Dec. 11 2012.
=============
J A M A I C A
=============
CIBONEY GROUP: Posts J$205,000 in Profits
-----------------------------------------
RJR News reports that foreign exchange gains have helped the
financially troubled Ciboney Group to record a modest profit for
the December to February quarter.
The company made a net profit of J$205,000 compared to a J$1.5
million loss during the corresponding period last year, according
to RJR News.
The report relates that during the three months, Ciboney earned
J$276,000 dollars which was below the J$392,000 in revenue it
collected in 2012.
Exchange gains totaled J$1.5 million up from J$125,000 in 2012,
the report adds.
========
P E R U
========
* PERU: Moody's Sees Strong Performance for Banks
-------------------------------------------------
The outlook for the Peruvian banking system is stable, reflecting
the expectation that the banks' financial performance will remain
strong over the next 12 to 18 months, says Moody's Investors
Service in its recent report "Banking System Outlook: Peru."
"Our outlook is based on Peruvian banks' strong earnings
prospects, which are supported by steady loan growth, ample profit
margins, and good control of operating and credit costs," said
Jeanne Del Casino, a Moody's Vice President -- Senior Credit
Officer and one of the report's authors. "We also take into
account the banks' stable local core funding and healthy capital
and reserve buffers that are strengthened through retained
earnings and spurred by stricter capital and loss provisioning
requirements."
These positive factors are balanced by concerns that the banks'
asset quality could deteriorate given the rapid expansion of their
loan books in recent years, particularly in the consumer and small
and medium-sized business (SME) segments. The Peruvian banks also
face structural risks such as increasing loan-to-deposit ratios as
they take on non-deposit liabilities that may expose the banks to
greater refinancing risks. High, though declining, financial
dollarization has been well managed to date through solid risk
management and a relatively stable exchange rate.
"Banks' earnings will benefit from the expected 6% growth of the
Peruvian economy in 2013, which will support credit demand along
with relatively low inflation and interest rates," said Georges
Hatcherian, an Associate Analyst and co-author of the report.
"Sustained economic expansion on the back of strong investment,
exports, and private consumption, will lead to employment and wage
gains, and increasing per capita income that together bolster
business opportunities for banks," continues Hatcherian.
Favorable operating conditions should also help limit
delinquencies, while ex ante and pro-cyclical provisioning
practices support reserve building that help protect balance
sheets against unexpected losses, said Moody's.
===============================
T R I N I D A D & T O B A G O
===============================
CARIBBEAN AIRLINES: To Cut More Jobs at Jamaican Operations
-----------------------------------------------------------
RJR News reports that more job cuts are coming at the Jamaican
operations of Caribbean Airlines Limited.
A Trinidad & Tobago newspaper reported the cuts will begin this
week, according to RJR News. The report relates that earlier this
year the airline reduced the number of flight attendants in
Jamaica.
Rabindra Moonan, CAL's Chairman, told the Sunday Express newspaper
that while the airline has suffered heavy losses in Jamaica, the
Air Jamaica acquisition was a government-to-government
relationship and the Trinidad & Tobago Government should comment
on it, RJR News notes.
The report relays that Caribbean Airlines is currently seeking
financing from banks in Trinidad & Tobago to deal with a $1.4
billion debt it now faces. Mr. Moonan has confirmed that the
airline has reached a delicate stage in its negotiations with a
bank for long-term financing, the report adds.
Meanwhile, CANANews relates that the Jamaica government is
threatening to withdraw the Air Jamaica brand from Caribbean
Airlines following widespread reports that the carrier would be
reducing the number of daily flight to Jamaica.
CAL Communications Manager Clint Williams confirmed media that the
airline would be cutting back on the number of flights to Jamaica,
effective April 16, according to CANANews. CANANews relays that
Transport Minister Dr. Omar Davis said the decision by the cash-
strapped airline would contradict the agreement signed when CAL
acquired Air Jamaica two years ago.
Mr. Davies said the only tangible weapon the government has
relates to the use of the Air Jamaica brand, CANANews discloses.
Mr. Davies said there have also been challenges in discussing
changes at CAL with the Kamla Persad Bissessar government and
crucial information has not been forthcoming from that end.
About Caribbean Airlines
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.
In 2010, Port of Spain and Kingston agreed to a deal that allowed
the Jamaica government to own 16% of CAL as part of the conditions
for CAL taking over the lucrative routes of Air Jamaica. The deal
also allows for Trinidad and Tobago agreeing to a US$300 million
transition plan for CAL to acquire and operate six Air Jamaica
aircraft and eight of its routes.
* * *
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 noted
that Trinidad Express reported that the arrears were built up
as no payments have been made despite an attractive fuel subsidy
which the airline has enjoyed since it began operations in January
2007.
CL FIN'L: To Sell Burn Stewart to Distell for US$244 Million
------------------------------------------------------------
Carla Bridglal at Trinidad Express, citing Britain's Financial
Times, reports that cash-strapped CL Financial Group Limited has
agreed to sell Burn Stewart Distillers to South African drinks
group Distell for US$244 million (TT$1.6 billion).
The purchase of Burn Stewart, which owns brands including blended
whisky Scottish Leader and the Islay single malt Bunnahabhain,
would give Distell access to the "highly attractive and growing"
market for Scotch whisky exports, the South African group said in
a filing to the Johannesburg Stock Exchange, according to Trinidad
Express.
With a valuation of more than 20 times Burn Stewart's calendar
2011 operating profit of GBP6.9 million, the deal marks a vote of
confidence in Scotch's future prospects, the report says. It
comes just over a decade after the then loss-making Burn Stewart
was bought by CL Financial in a GBP49 million takeover, the
Financial Times reported, Trinidad Express notes.
Trinidad Express discloses that the government has been selling or
negotiating the sales of key CL Financial assets in a bid to
recoup some of the US$20 billion it has spent since 2009 in
bailing out the former financial empire.
In January 2013 the sale of Jamaican based spirits manufacturer
Lascelles de Mercado to Italian firm Campari was scheduled to be
completed, the report recalls.
Burn Stewart is based in East Kilbride, near Glasgow, Scotland.
It employs around 270 staff in operations including three single
malt whisky distilleries, a blending and maturation plant, and a
bottling operation.
About CL Financial
CL Financial Group Limited is a privately held conglomerate in
Trinidad and Tobago. Founded as an insurance company by Cyril
Duprey, Colonial Life Insurance Company was expanded into a
diversified company by his nephew, Lawrence Duprey. CL Financial
is now one of the largest local conglomerates in the region,
encompassing over 65 companies in 32 countries worldwide with
total assets standing at roughly US$100 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
August 10, 2009, A.M. Best Co. downgraded the financial strength
rating to C (Weak) from B (Fair) and issuer credit rating to
"ccc" from "bb" of Colonial Life Insurance Company (Trinidad)
Limited (CLICO) (Trinidad & Tobago). The ratings remain under
review with negative implications. CLICO is an insurance member
company of CL Financial Limited (CL Financial), a diversified
holding company based in Trinidad & Tobago.
According to a TCR-LA report on Feb. 20, 2009, citing Trinidad
and Tobago Express, Tobago President George Maxwell Richards
signed bailout bills for CL Financial, giving the government the
authority to control the company's unit, Colonial Life Insurance
Company, and giving the central bank extensive powers to treat
with CL Financial's collapse and the consequent systemic crisis.
===============
X X X X X X X X
===============
* LATIN AMERICA: Moody's Outlook on Telecoms is Stable
------------------------------------------------------
The outlook for the Latin American telecommunications industry
remains stable, Moody's Investor Services says in its latest
industry outlook update on the sector. The stable outlook reflects
expected modest revenue growth and stable EBITDA and capital
spending, offset by regulatory and competitive pressures, over the
next 12 to 18 months.
"We expect EBITDA to grow by about 1% this year and next, given
the growing demand for mobile and fixed data services, as well as
pay TV," says Vice President -- Senior Analyst Nymia Almeida in
"Competitive, Regulatory Pressures To Constrain Margins at Latam
Telcos."
"In addition, increasing smartphone penetration and the
introduction of long-term evolution 4G services in several
countries will drive revenue growth."
But companies' margins will come under strain from regulatory and
competitive pressures across the entire region in the coming one
to two years, Almeida says, though these will be somewhat offset
by stable or declining capital spending. The regulatory
environment remains negative particularly for the leading telcos,
since regulators' actions are commonly directed at them in order
to foster competition and improve access to broadband.
"Now that regulatory bodies have for the most part reduced
interconnection rates to low levels and dominant operators'
related losses and smaller ones' gains for have been largely
absorbed, it remains to be seen what further actions regulators
will take to foster competition," Almeida says. "These could
include restrictions on mismatched on-net/off-net prices and
asymmetric termination rates, and network unbundling."
And going forward new players such as mobile virtual network
operators might be attracted by a more level playing field. Such
an environment would be favorable particularly for smaller service
providers in the expanding economies of Chile, Brazil, Colombia
and Mexico, Almeida says.
***********
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 * * *