/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130610.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, June 10, 2013, Vol. 14, No. 113 Headlines A N T I G U A & B A R B U D A * ANTIGUA & BARBUDA: IMF Completes Tenth and Final Review B R A Z I L ALL-AMERICA LATINA: Contracts Rescission Neutral to Credit Quality MARFRIG ALIMENTOS: Fitch Lowers Issuer Default Rating to 'B' STATE OF MARANHAO: Fitch Assigns 'B' FC Short-Term Rating C A Y M A N I S L A N D S CASTLE AIRCRAFT: Shareholder to Receive Wind-Up Report on June 24 DKR FUSION: Shareholder to Receive Wind-Up Report on June 18 DKR FUSION 2x: Shareholder to Receive Wind-Up Report on June 18 DKR FUSION HFT: Shareholder to Receive Wind-Up Report on June 18 DKR FUSION HOLDING: Shareholder to Hear Wind-Up Report on June 18 DKR QUANTITATIVE: Shareholder to Receive Wind-Up Report on June 18 HARMONY FUND: Shareholder to Receive Wind-Up Report on June 11 KAI YIH: Shareholder to Receive Wind-Up Report on June 19 LIQUIDMACRO MASTER: Members to Receive Wind-Up Report on June 21 NEXT GENERATION: Shareholder to Receive Wind-Up Report on June 11 OASIS PERSONNEL: Shareholder to Receive Wind-Up Report on June 21 ONCA 2007-1: Shareholder to Receive Wind-Up Report on June 20 STAN LIMITED: Shareholder to Receive Wind-Up Report on June 24 SURF'S UP: Shareholder to Receive Wind-Up Report on June 24 TEXAS DE BRAZIL: Shareholder to Receive Wind-Up Report on June 21 XLIT LTD: Fitch Affirms 'BB+' $999.5MM Ordinary Shares Rating D O M I N I C A * DOMINICA: Seeks US$50 Million for Infrastructure Projects M E X I C O SERVICIOS CORPORATIVOS: S&P Revises Outlook & Affirms 'B+' CCR P U E R T O R I C O SANTANDER PR: Fitch Affirms 'BB' Preferred Stock Rating T R I N I D A D & T O B A G O HINDU CREDIT UNION: Depositors in Long Wait X X X X X X X X * BOND PRICING: For the Week From June 3 to 7, 2013 - - - - - =============================== A N T I G U A & B A R B U D A =============================== * ANTIGUA & BARBUDA: IMF Completes Tenth and Final Review ---------------------------------------------------------- The Executive Board of the International Monetary Fund completed the tenth and final review of Antigua and Barbuda's economic performance under a program supported by a Stand-By Arrangement (SBA). The completion of the review enables the immediate disbursement of an amount equivalent to SDR 16.875 million (about $25.4 million). This is the last review under the SBA, which will expire on June 6. Owing to strong implementation by the authorities, the Fund-supported program has been successfully completed. The aims of the program were largely achieved despite considerable challenges. The fiscal deficit dropped from 18 percent of GDP in 2009 to just over 1 percent in 2012. Fiscal adjustment and debt restructuring have put the debt ratio on a downward path with the debt ratio dropping from 102.5 percent of GDP in 2009 to 89 percent of GDP at the end of 2012. Additionally, the economic recovery is picking up speed with improvements in the tourism and construction sectors. Nevertheless, significant challenges remain. Much of the adjustment under the program has come from cuts in public spending and investment, while tax revenue targets for 2013 have been met largely through one-off payments of back taxes. Another risk looms in the expiration of debt relief and upcoming payments due to foreign creditors. Further improvements in the collection of tax revenues are necessary to allow the authorities to meet their targets and while making needed public investment. In particular, the elimination of tax exemptions and a broadening of the tax base could help. In completing the review the Executive Board approved the authorities' request for a waiver of nonobservance of the performance criterion on the central government budget expenditure arrears accumulation. The waiver was granted on the basis of the temporary and minor nature of the deviations from the program objectives and the corrective measures undertaken by the authorities. After the expiration of the SBA, Antigua and Barbuda and the IMF will continue to maintain a constructive policy dialogue. In accordance with Fund policy, Post Program Monitoring1 (PPM) will now be initiated. The 36-month SBA was approved on June 7, 2010 (see Press Release No. 10/232) for an original amount of total access equivalent to SDR 81 million (about US$121.9 million). Following the Executive Board's discussion, Ms. Nemat Shafik, Deputy Managing Director and Acting Chair, stated: "The recovery in Antigua and Barbuda is starting to take hold, with tourism and construction returning to pre-crisis levels. Nevertheless, risks to the macroeconomic outlook remain, given the dependence on imports and tourism from advanced markets, and vulnerability to natural disasters. "The authorities' have successfully implemented their program, supported by a Stand-By Arrangement, under very challenging circumstances, and the economy is now better positioned for a robust recovery. Fiscal consolidation and debt restructuring have reduced the debt ratio and arrears, while structural reforms have improved revenue administration and public financial management. The strong first quarter fiscal performance puts public finances in a good position to achieve 2013 targets, consistent with the goal of reducing the debt ratio to 60 percent of GDP by 2020. "Fiscal consolidation continues to be achieved largely through expenditure contraction, at the expense of public investment, jeopardizing the sustainability of further adjustment. Contingent liabilities and rising external financing needs in 2014 and beyond may also require additional adjustment. In light of these challenges continued efforts are needed to improve revenue administration, rationalize tax expenditures and move forward with civil service reform. "The resolution of Antigua and Barbuda Investment Bank (ABIB) is now expected by end-June 2013. This will be critical for sustaining confidence in the banking system, and will release resources to advance reforms in banking supervision, regulation and the consolidation of the indigenous banks. The government has taken important steps to operationalize the asset management company to take over the residual assets from ABIB's resolution. "Antigua and Barbuda will continue its close policy dialogue with the Fund under the post-program monitoring framework." =========== B R A Z I L =========== ALL-AMERICA LATINA: Contracts Rescission Neutral to Credit Quality ------------------------------------------------------------------ Fitch Ratings considers neutral for the credit quality of ALL- America Latina Logistica S.A. (ALL) and its subsidiaries the rescission of the concession contracts of its Argentine subsidiaries, America Latina Logistica Central S.A. e America Logistica Mesopotamica S.A. (ALL Argentina). ALL Argentina's operations have not had a positive impact upon ALL's consolidated credit profile. In 2012, the Argentine operations corresponded to 6.5% of pro-forma net revenues and adjusted EBITDA was a negative BRL4.1 million. ALL has been making maintenance CAPEX of BRL50 million in these operations. Fitch considers that ALL will not pay large cash contingencies for these concessions to the Argentine regulatory authority. As a consequence of this event, the contracts for ALL's 5th and 6th debenture issuances could have had an accelerated maturity. To prevent this from occurring, the company has tended for a repurchase of the debentures. As of March 31, 2013, the outstanding balance of these debentures was about BRL180 million. ALL has the financial ability to repurchase these debentures given its robust liquidity. On March 31, 2013, consolidated cash and marketable securities totaled BRL2.3 billion, while its total adjusted debt was BRL10.7 billion. For the LTM ended March 31, 2013, ALL EBITDAR was BRL1.8 billion. Fitch rates ALL and subsidiaries as follows: ALL: -- Foreign and Local Currency Long-Term IDRs (Issuer Default Ratings) 'BB-'; -- National Long-Term Rating 'A(bra)'; -- National Long-Term Rating of the 5th debenture issue 'A(bra)'; -- National Long-Term Rating of the 6th debenture issue 'A(bra)'; -- National Long-Term Rating of the 8th debenture issue 'A(bra)'; -- National Long-Term Rating of the 9th debenture issue 'A(bra)'; -- National Long-Term Rating of the 10th debenture issue 'A(bra)'. ALL - America Latina Logistica Malha Sul S.A. (ALL Malha Sul): -- National Long-Term Rating 'A(bra)'; -- National Long-Term Rating of the 3rd debenture issue 'A(bra)'. ALL - America Latina Logistica Malha Norte S.A. (ALL Malha Norte): -- National Long-Term Rating 'A(bra)'; -- National Long-Term Rating of the 6th debenture issue 'A(bra)'; -- National Long-Term Rating of the 8th debenture issue 'A(bra)'. ALL - America Latina Logistica Malha Paulista S.A. (ALL Malha Paulista): -- National Long-Term Rating 'A(bra)'; -- National Long-Term Rating of the 1st debenture issue 'A(bra)'. The Rating Outlook for the corporate ratings is Stable. MARFRIG ALIMENTOS: Fitch Lowers Issuer Default Rating to 'B' ------------------------------------------------------------ Fitch Ratings has downgraded to 'B' from 'B+' all international scale ratings of Marfrig Alimentos S.A. (Marfrig) and its subsidiaries. Concurrently Fitch has downgraded Marfrig's national scale rating to 'BBB(bra)' from 'BBB+(bra)', as well as its debentures due in 2015. Fitch has also placed the ratings for Marfrig and its subsidiaries on Rating Watch Negative. The downgrades reflect Marfrig's weak operating performance and negative free cash flow generation that resulted in increased debt since the end of 2011. The ratings build in the expectation that Marfrig will sell assets during 2013 to lower leverage. The size and timing of these sales will determine the status of the Rating Watch Negative. KEY RATING DRIVERS Weak Operating Results Have Increased Leverage Marfrig's EBITDA increased to BRL2.0 billion in 2012 from BRL1.8 billion during 2011. Despite EBITDA growth, working capital needs were high due to rising grain costs and costs associated with the integration of assets received from BRF S.A.'s (BRF) in an asset swap. Consequently, the company's cash flow from operations declined to BRL 111 million from BRL 768 million in 2011. With capex at BRL870 million and dividends of BRL15 million, Marfrig's free cash flow was negative BRL775 million in 2012. This compares unfavorably with the company's negative free cash flow of BRL 175 million in 2011. To bolster liquidity Marfrig issued BRL1.05 billion of equity during December 2012 and a USD600 million note in January 2013. Marfrig's operational challenges of lowering its costs and integrating the assets received from BRF continued during the first quarter of 2013, as the company's cash flow from operations was a negative BRL179 million. Fitch expects the second quarterly to be equally, if not more difficult, and the company to continue burning cash through the end of 2013. As a result of the aforementioned, Marfrig's ended March 31, 2013 with BRL13.6 billion of total debt and BRL3.2 billion of cash. The company's total net debt to EBITDA ratio was 5.1x as of March 31, 2013, an increase from 4.3x as of Dec. 31, 2013. Asset Sales Likely in 2013 The 'B' and 'BBB (bra)' ratings reflect Fitch's expectation that Marfrig will sell assets during 2013 but that its capital structure will remain highly leveraged relative to its cash flow. The asset sales are essential for maintaining Marfrig's liquidity and avoiding acceleration of USD 2.2 billion of public debt that could be precipitated by a breach of financial covenants. At the end of the first quarter, the company announced that it had targeted gross debt reduction by up to BRL2.0 billion by the end of 2013. At the end of March 31, 2013, the test of Marfrig's most restrictive financial covenant of net debt to EBITDA stood at 4.4x. The maximum allowed level is 4.75x. With the expected deterioration of operating results during the second quarter of 2013, this covenant's test is expected to approach or even exceed its maximum level as early as June 30, 2013. The Negative Rating Watch reflects Marfrig's tightening liquidity and proximity to covenants violation. Business Portfolio Will Change Marfrig's 'B' and 'BBB (bra)' ratings are supported by the quality of the company's business portfolio, which includes strong performers such as Key Stone, Moy Park in the UK and its beef business in Brazil. The company acquired some of those assets in a series of acquisitions that resulted in both product and geographic diversification which is positive for the ratings, but also led to highly levered capital structure. Marfrig is in the process of selling some assets. Fitch believes some of these assets will be sold in 2013 to meet the company's deleveraging goals. The presence of BNDESPAR as a shareholder of 19.63% of Marfrig's equity provides additional support for this company that operates in a strategic sector for the Brazilian economy. Ultimately, Marfrig's ability to maintain a sustainable capital structure will depend on its ability to start generating positive free cash flow, which in turn hinges upon the company's success in executing its strategy to realign business priorities, cut down cost, improve logistics, and establish itself as a viable niche player in the branded food segment. Marfrig's branded food portfolio grew in importance with the acquisition of Seara a few years ago. This segment's contribution increased substantially in the middle of 2012 with the acquisition of some of BRF's lower tiered brands, production and logistics assets. Marfrig's Seara brand is positioned in the second and third-tier of the industrialized food products, trading at 10 - 15% to leading competitors in Brazil. The company aspires to reduce this price gap, which, in Fitch's opinion, would require redefining Seara's brand strategy. Additional investments would also be needed to allow Marfrig to benefit from the market opportunity created by the CADE ruling of last year that led to the suspension of product categories of BRF's Perdigao brand. The company's financial and operational challenges could prevent them from capturing this opportunity. RATING SENSITIVITIES Capital injections and or asset sales for debt reduction are expected to be of a magnitude consistent with a capital structure of 'B' and 'BBB (bra)'. Sales less than forecast by Fitch could result in a downgrade. A delay in these sales, which leads to a covenant breach, could also lead to negative rating actions. An upgrade of Marfrig's ratings is unlikely in the near future considering the challenges the company continues to face financially and operationally. The company's capital structure is expected to continue to be highly leveraged after asset sales. In addition, asset sales could limit the company's product and geographic diversification, which could also be a constraining factor on future rating actions. Fitch downgrades the following as indicated: Marfrig Alimentos S.A. -- Local currency IDR to 'B' from 'B+'; -- Foreign currency IDR to 'B' from 'B+'; -- National scale rating to 'BBB'(bra) from 'BBB+(bra)'; -- BRL 300 million 3rd debentures issue (1st tranche) to 'BBB'(bra) from 'BBB+(bra)'; -- BRL 300 million 3rd debentures issue (2nd tranche) to 'BBB'(bra) from 'BBB+(bra)'. Marfrig Overseas Ltd -- Foreign currency IDR to 'B' from 'B+'; -- US$375 million senior unsecured notes due 2016 to 'B/RR4' from 'B+/RR4'; -- US$500 million senior unsecured notes due 2020 to 'B/RR4' from 'B+/RR4'. Marfrig Holdings (Europe) B.V. -- Foreign currency IDR to 'B' from 'B+'; -- US$600 million senior unsecured notes due 2017 to 'B/RR4' from 'B+/RR4'. -- US$750 million senior unsecured notes due 2018 to 'B/RR4' from 'B+/RR4'. The ratings are informed by 'Fitch Parent and Subsidiary Linkage Criteria'. STATE OF MARANHAO: Fitch Assigns 'B' FC Short-Term Rating --------------------------------------------------------- Fitch Ratings has assigned the following ratings for the State of Maranhao: -- Foreign currency long-term rating 'BB+'; Stable Outlook; -- Foreign currency short-term rating 'B'; -- Local currency long-term rating 'BB+'; Stable Outlook; -- Local currency short-term rating 'B'; -- National long-term rating 'AA-(bra)'; Stable Outlook; -- National short-term rating 'F1+(bra)'. KEY RATING DRIVERS The State of Maranhao's ratings are based on its sound fiscal budgetary performance, moderate debt level and their modest economic base contra balanced by federal transfers, which represents an important revenue source, accounting more than 58% of operating revenues. Maranhao is the fourth-largest state in Brazil's Northeast region and the 16th-largest of Brazil's 26 states. Maranhao GDP accounted for only 1.2% of Brazilian GDP in 2012. Also supporting the rating is Maranhao's financial flexibility, which results from the fact that the federal government is its most important creditor of its debt. Maranhao's operating balance averaged 17.2% annually over the last five years. The state exhibits below-average tax autonomy; in 2012, proprietary revenues accounted for only 39.9% of total revenues despite above-average operating margin of 15.1%. Fitch believes that operating margins should diminish in upcoming periods, neighbouring to 10%, considering the high social demands. The ability of control expenses coupled with margin sustainability is one of the main triggers of the rating. The state presents below average social indicators when compared with the states average in the South and Southeast regions. Maranhao scores lower in sewage coverage (11.5% versus 57.1%), water supply (67.5% versus 87.2%), and trash collection (66.1% versus 92.6%), denoting the need for relevant investments. Moreover, only 6.3% of the population aged 18-24 is enrolled in universities, compared with 17.3% in the South and Southeast regions, and this partially explains Maranhao's shortage of highly skilled workforce. The state has implemented a broad investment plan on key areas called 'Viva Maranhao' involving BRL3.8 billion of investment in total until 2016, financed by the BNDES and Proinveste through long term agreements. In addition, out of BRL278 billion in private investments in the northeast region expected until 2016, Maranhao hosts roughly 40% of total, or BRL112.3 billion. Nevertheless, the pace of these investments has been slow given that the majority has not yet been concluded to date, mainly as a result of bottlenecks in logistics and workforce shortage. Once completed, these investments can translate into higher tax collections thus improving Maranhao's tax autonomy. Maranhao holds a low debt burden. Financial debt represented 1.8 years of current balance in 2012 And external debt is currently negligible the expectation of its increased in the near term. Fitch recognizes that the state has not yet implemented a cap on maximum debt denominated in foreign currency, and this constitutes a potential threat to its future budgetary performance, since the state does not have revenues linked to the U.S. dollar. Maranhao's pension plans are managed by Fundo Estadual de Pensao e Aposentadoria (FEPA). In 2012, pension-related expenditures trended higher to BRL885 million, or 10.1% of operating expenditures. The state includes shortfalls into its budgetary planning. The estimated actuarial deficit is BRL16.9 billion, which is lower when compared to other states in the region and must be funded in 70 years. This can result in increased pressure on personal expenditures after 2015. RATING SENSITIVITIES - INTERNATIONAL AND NATIONAL RATINGS Though not a likelihood in the short term, Fitch would positively review the ratings should Maranhao be able to increase its economic importance nationwide and tax autonomy to levels comparable with the South and Southern states of Brazil. A downgrade would be warranted if operating margins fall below 10%. ========================== C A Y M A N I S L A N D S ========================== CASTLE AIRCRAFT: Shareholder to Receive Wind-Up Report on June 24 ----------------------------------------------------------------- The shareholder of Castle Aircraft Finance (No.1) Limited will receive on June 24, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands DKR FUSION: Shareholder to Receive Wind-Up Report on June 18 ------------------------------------------------------------ The shareholder of DKR Fusion Quantitative Strategies Fund Ltd. will receive on June 18, 2013, at 9:45 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta c/o Maree Martin Telephone: (345) 814 7376 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands DKR FUSION 2x: Shareholder to Receive Wind-Up Report on June 18 --------------------------------------------------------------- The shareholder of DKR Fusion Quantitative Strategies 2x Fund Ltd. will receive on June 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: Gene Dacosta c/o Maree Martin Telephone: (345) 814 7376 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands DKR FUSION HFT: Shareholder to Receive Wind-Up Report on June 18 ---------------------------------------------------------------- The shareholder of DKR Fusion HFT Ltd. will receive on June 18, 2013, at 10:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta c/o Maree Martin Telephone: (345) 814 7376 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands DKR FUSION HOLDING: Shareholder to Hear Wind-Up Report on June 18 ----------------------------------------------------------------- The shareholder of DKR Fusion Quantitative Strategies Holding Fund Ltd. will receive on June 18, 2013, at 9:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta c/o Maree Martin Telephone: (345) 814 7376 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands DKR QUANTITATIVE: Shareholder to Receive Wind-Up Report on June 18 ------------------------------------------------------------------ The shareholder of DKR Quantitative Strategies 2X Holding Fund Ltd will receive on June 18, 2013, at 10:15 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gene Dacosta c/o Maree Martin Telephone: (345) 814 7376 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands HARMONY FUND: Shareholder to Receive Wind-Up Report on June 11 -------------------------------------------------------------- The shareholder of Harmony Fund SPC will receive on June 11, 2013, at 9:30 a.m., 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 KAI YIH: Shareholder to Receive Wind-Up Report on June 19 --------------------------------------------------------- The shareholder of Kai Yih Holding Corporation will receive on June 19, 2013, at 3:00 p.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Wu, Yung-Hsiang (Crispin Wu) No. 98, Sec. 2, Anhe Rd. Annan Dist., Taiwan city 709 Taiwan (R.O.C.) Telephone: +886 (6) 3560 511 Facsimile: +886 (6) 3566 055 LIQUIDMACRO MASTER: Members to Receive Wind-Up Report on June 21 ---------------------------------------------------------------- The members of Liquidmacro Master Fund, Ltd. will receive on June 21, 2013, at 4:00 p.m., 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 Ronan Guilfoyle Telephone: (345) 946 7665 Facsimile: (345) 946 7666 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands NEXT GENERATION: Shareholder to Receive Wind-Up Report on June 11 ----------------------------------------------------------------- The shareholder of Next Generation Investments SPC will receive on June 11, 2013, at 9:00 a.m., 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 OASIS PERSONNEL: Shareholder to Receive Wind-Up Report on June 21 ----------------------------------------------------------------- The shareholder of Oasis Personnel Limited will receive on June 21, 2013, at 9:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust Corporate Services (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943 3100 ONCA 2007-1: Shareholder to Receive Wind-Up Report on June 20 ------------------------------------------------------------- The shareholder of Onca 2007-1 Ltd will receive on June 20, 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: Rob Mcmahon c/o Robert Crockett Ernst & Young Ltd 62 Forum Lane, Camana Bay PO Box 510 Grand Cayman Cayman Islands KY1 -1106 Telephone +1 (345) 814 8986 STAN LIMITED: Shareholder to Receive Wind-Up Report on June 24 -------------------------------------------------------------- The shareholder of Stan Limited will receive on June 24, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands SURF'S UP: Shareholder to Receive Wind-Up Report on June 24 ----------------------------------------------------------- The shareholder of Surf's Up Ltd will receive on June 24, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: David Dyer Telephone: (345)949-8244 Facsimile: (345)949-5223 P.O. Box 1984 Grand Cayman KY1-1104 Cayman Islands TEXAS DE BRAZIL: Shareholder to Receive Wind-Up Report on June 21 ----------------------------------------------------------------- The shareholder of Texas De Brazil International Inc. will receive on June 21, 2013, at 11:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Company Secretaries Ltd. P.O. Box 1350 Clifton House, 75 Fort Street Grand Cayman KY1-1108 Cayman Islands XLIT LTD: Fitch Affirms 'BB+' $999.5MM Ordinary Shares Rating ------------------------------------------------------------- Fitch Ratings has affirmed the ratings of XLIT Ltd. (XL, a Cayman Islands subsidiary of XL Group plc) and its property/casualty (re)insurance subsidiaries, including the Issuer Default Rating (IDR) for XL at 'BBB+', and the Insurer Financial Strength (IFS) rating of its core operating companies at 'A'. The Rating Outlook has been revised to Positive from Stable. KEY RATING DRIVERS The Outlook revision to Positive reflects XL's favorable recent net earnings from improving calendar year and run-rate accident year underwriting results, particularly in the company's insurance segment, as well as improving operating earnings-based interest and preferred dividend coverage. The ratings also continue to reflect the company's solid capitalization, reasonable financial leverage and large diversified market position in both insurance and reinsurance lines, as well as anticipated challenges in the overall competitive but generally improving property/casualty market rate environment. XL posted net earnings totaling $1 billion in 2012 and through the first three months of 2013, as results have benefited from more modest catastrophe losses. This result is improved from a net loss of $475 million for full-year 2011, which included $761 million of catastrophe losses from several significant international catastrophe events. Full-year 2011 results also included a fourth- quarter $429 million goodwill impairment charge in the insurance segment. XL's core property/casualty operations posted a very favorable first quarter 2013 GAAP combined ratio of 87.7%, which included minimal catastrophe losses (0.3 points). This underwriting performance compares favorably to96.3% and 107.5% for full years 2012 and 2011, respectively, which included 8.0 points (6.2 points from Hurricane Sandy) and 14.3 points for catastrophe losses, respectively. Excluding the impact of catastrophes and favorable reserve development, XL's underlying accident year combined ratio has exhibited considerable improvement in recent periods to 89.5% in the first quarter of 2013 and 93.7% in full year 2012. This result is down from 98.5% for full year 2011, primarily driven by reduced large property loss activity and business mix changes. XL's insurance segment, in particular, has demonstrated meaningful improvement, with an accident year combined ratio excluding catastrophes of 93.5% in the first quarter of 2013, compared to 98.5% in full year 2012 and a sizable 104.2% in 2011. This favorable performance is due in part to underwriting actions taken by the company over the last several years to improve the margins in its poorer performing challenged insurance businesses. XL's operating earnings-based interest and preferred dividend coverage has been weak in recent years, averaging a low 3.0x from 2008 - 2012. However, earnings coverage has improved to more historic levels in 2012 at 4.3x and through the first three months of 2013 at 6.2x, with more normal catastrophe losses and overall reduced interest costs. This increase in coverage follows negative coverage in 2011 due to the sizable catastrophe losses. XL continues to maintain a reasonable financial leverage ratio (adjusted for equity credit and excluding unrealized net gains/losses on fixed maturities) of 13.1% at March 31, 2013 and 13.2% at Dec. 31, 2012, with debt plus preferred equity to total capital of 22.4% at March 31, 2013, compared to 22.3% at Dec. 31, 2012. XL's capital position has remained stable thus far in 2013, with shareholders' equity of $11.8 billion at March 31, 2013, down slightly from $11.9 billion at Dec. 31, 2012, as solid net income was offset by share buybacks and net unrealized investment losses. RATING SENSITIVITIES The key rating triggers that could result in an upgrade include consistent favorable underwriting profitability with combined ratios of 98% or better, overall flat to favorable loss reserve development, financial leverage ratio maintained below 20%, run- rate operating earnings-based interest and preferred dividend coverage of 7x, and continued strong capitalization of the insurance subsidiaries. The key rating triggers that could result in a downgrade include significant charges for reserves, investments, or runoff business that affect equity and the capitalization of the insurance subsidiaries, financial leverage ratio maintained above 25% or debt plus preferred equity to total capital above 30%, and future earnings that are significantly below industry levels. Fitch affirms the following ratings with a Positive Outlook: XLIT Ltd. -- IDR at 'BBB+'; -- $600 million 5.25% senior notes due 2014 at 'BBB'; -- $400 million 5.75% senior notes due 2021 at 'BBB'; -- $350 million 6.375% senior notes due 2024 at 'BBB'; -- $325 million 6.25% senior notes due 2027 at 'BBB'; -- $345 million series D preference ordinary shares at 'BB+'; -- $999.5 million series E preference ordinary shares at 'BB+'. Fitch has also affirmed at 'A' the IFS ratings of the following XL (re)insurance subsidiaries with a Positive Outlook: -- XL Insurance (Bermuda) Ltd; -- XL Re Ltd; -- XL Insurance Switzerland Ltd; -- XL Re Latin America Ltd; -- XL Insurance Company Limited; -- XL Insurance America, Inc.; -- XL Reinsurance America Inc.; -- XL Re Europe plc; -- XL Insurance Company of New York, Inc.; -- XL Specialty Insurance Company; -- Indian Harbor Insurance Company; -- Greenwich Insurance Company; -- XL Select Insurance Company. Fitch has withdrawn the following rating as the entity no longer exists: XL Capital Finance (Europe) plc -- IDR at 'BBB+'. =============== D O M I N I C A =============== * DOMINICA: Seeks US$50 Million for Infrastructure Projects ----------------------------------------------------------- Caribbean360.com reports the Dominica government says it will approach a number of international financial institutions including the World Bank to finance construction of new roadways, river defenses, bridges and retaining walls along the east coast of the island. "We are going to be contracting a loan from the World Bank, we have not confirmed it yet but we are looking at it of a very huge sum to address the issues on the east coast," Prime Minister Roosevelt Skerrit said. "We have gotten a grant from the European Union to put with that and we are also looking at a third source to ensure that we can address the situation of the entire east coast of Dominica," the report quoted Mr. Skerrit as saying. The report notes that the government said it is seeking at least US$50 million for the projects and Mr. Skerrit said the island had developed a reputation for a being a model country in its quick responses to natural disasters. But Mr. Skerrit said the global economic crisis is causing problems for many countries including donors and that it is important for Dominica to do all it can to minimize the impact of natural disasters. "One has to recognize that we are operating in a very difficult global economic and fiscal period and therefore whatever we can do to minimize on the damage done by disasters we all have a moral obligation to do that because we are spending a lot of money to respond to disasters," Mr. Skerrit added, the report relays. =========== M E X I C O =========== SERVICIOS CORPORATIVOS: S&P Revises Outlook & Affirms 'B+' CCR -------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Servicios Corporativos Javer, S.A.P.I. de C.V. (Javer) to stable from positive. At the same time, S&P affirmed its 'B+' corporate credit and issue ratings on the company. S&P's recovery rating on the company's $320 million senior unsecured notes remains at '4'. The outlook revision follows Javer's termination of agreement with Empresas ICA S.A.B. de C.V.'s ViveIca to combine their housing businesses. The termination follows both parties' inability to reach an agreement on the conditions for closing the transaction. S&P's ratings on Javer reflect its "aggressive" financial risk profile and its "weak" business risk profile. The termination of the agreement will slow down the pace at which Javer will be able to increase its scale and further improve its competitive position. S&P believes Javer's business risk profile will remain limited by its geographic concentration in the intermediate term. Although Javer has been focused on reducing this concentration in the state of Nuevo Leon, its major market, it still lacks a nationwide presence. S&P expects Javer to increase its scale while the biggest players are currently ailing from industry woes. S&P expects Javer to explore these opportunities under a conservative approach to avoid jeopardizing its financial position. ===================== P U E R T O R I C O ===================== SANTANDER PR: Fitch Affirms 'BB' Preferred Stock Rating ------------------------------------------------------- Fitch Ratings has affirmed the long- and short-term Issuer Default Ratings (IDRs) of Santander Bancorp (SBP) at 'BBB/F2'. The rating action was a result of Fitch's affirmation of the long-term IDR of SBP's parent company, Banco Santander, on May 23, 2013. The Rating Outlook for SBP is Negative, which is in line with Banco Santander's Outlook, which remains Negative (see the press release titled 'Fitch Affirms Santander's BBVA's and CaixaBank's Ratings', dated May 23, 2013) reflecting the close correlation between the bank and the sovereign credit risk of Spain (rated L/T IDR BBB, Outlook Negative, by Fitch). KEY RATING DRIVERS - VRS, IDRS AND SENIOR DEBT Fitch affirmed SBP's standalone rating, the Viability Rating (VR), at 'bb+'. The affirmation is supported by the company's sound operating performance and solid capital position while operating in the challenging Puerto Rican market. Similarly to local peers, asset quality has been a challenge given the weak macro environment in Puerto Rico as evidenced by high unemployment of 13.7% and continued negative Gross National Product (GNP). Although Fitch is concerned with SBP's elevated levels of non- performing assets (NPAs), which includes restructured loans, at 6.77% for the first quarter of 2013 (1Q'13), it compares well to local peers with an average nonperforming asset (NPA) of 12.22% at 1Q'13. SBP's loan portfolio exhibits better credit performance due to more conservative underwriting and overall risk management practices (including a relatively low concentration in construction lending). Additionally, the company continues to build its capital base improving its tangible common equity ratio to 9.62% for 1Q'13 compared to 8.48% for 1Q'12 attributed to internal capital generation. RATING SENSITIVITIES -VR, IDRS AND SENIOR DEBT Fitch believes there is limited upside to SBP's VR given the concentration in its loan book by product and geography and relatively small franchise. The VR could be negatively affected if loan portfolio quality deteriorates, particularly if significant operating losses emerge and the company's capital position is eroded. SBP's IDRs are correlated to Banco Santander's, therefore, changes in Banco Santander's IDRs result in changes to SBP's. SBP's IDRs would be negatively affected if the parent bank's ratings are downgraded or Fitch's view of support changes. KEY RATING DRIVERS AND SENSITIVITIES - SUPPORT RATING The Support Rating is '2', which reflects Fitch's view that there is still a high probability of support for SBP by its parent in the event of need. Fitch considers SBP to be strategically important to, but not a core subsidiary of Banco Santander. This is reflected in the support-driven IDR, which is notched one notch below the parent company's IDRs at 'BBB'. Since SBP's support reflects institutional support, no support rating floor is assigned. In the event Fitch's views of support changes, its support rating could be downgraded. KEY RATING DRIVERS AND SENSITIVITIES - HOLDING COMPANY SBP's IDR and VR are equalized with those of Banco Santander Puerto Rico, reflecting its role as the bank holding company, which is mandated in the U.S. to act as a source of strength for its bank subsidiaries. Should SBP's holding company begin to exhibit signs of weakness, or have inadequate cash flow coverage to meet near-term obligations, there is the potential that Fitch could notch the holding company IDR and VR from the ratings of the bank subsidiary. SBP is the third largest bank in Puerto Rico by deposits with approximately a 12% share. SBP offers banking and other financial services through its subsidiaries, Banco Santander Puerto Rico, Santander Financial Services, Santander Securities Corporation among other smaller subsidiaries. SBP is wholly owned by Banco Santander following the completion of a tender offer for remaining publicly owned shares in 2010. Fitch has taken the following rating actions: Santander Bancorp -- Long-term IDR affirmed at 'BBB'; Outlook Negative; -- Short-term IDR affirmed at 'F2'; -- Viability Rating affirmed at 'bb+'; -- Support Rating affirmed at '2'; -- Subordinated debt affirmed at 'BBB-'. Banco Santander Puerto Rico -- Long-term IDR affirmed at 'BBB'; Outlook Negative; -- Short-term IDR affirmed at 'F2'; -- Viability Rating affirmed at 'bb+'; -- Support Rating affirmed at '2'; -- Long-term deposit rating affirmed at 'BBB+'; -- Short-term deposit rating affirmed at 'F2'. Santander PR Capital Trust I -- Preferred stock affirmed at 'BB'. =============================== T R I N I D A D & T O B A G O =============================== HINDU CREDIT UNION: Depositors in Long Wait ------------------------------------------- Trinidad and Tobago Newsday reports that Hindu Credit Union Co- Operative Society Limited (HCU) Depositors and Shareholders Chairman, Leslie Dookie, said depositors in HCU with investments of over $75,000 are still awaiting payments. Mr. Dookie indicated that a total of 3,000 persons who had such investments in the credit union were yet to receive payments promised them by the Ministry of Finance, according to Trinidad and Tobago Newsday. The report relates that Mr. Dookie however, said many of the 118,000 to 200,000 HCU depositors with investments under $75,000 have received their payments. Mr. Dookie said while packages were distributed to those depositors last year, the procedure whereby the information in the package was being processed too slow, the report notes. The report says that Mr. Dookie noted in contrast that Clico depositors with investments over $75,000 have already started receiving their payments. Mr. Dookie said the group has written to the Finance Ministry on several occasions to express its concerns, but is yet to receive a response, the report relays. In a release dated Nov. 14, 2012, the ministry announced the processing of payments to HCU depositors with investments of over $75,000 would begin "during the week of Nov. 19, 2012," the report says. The ministry said this was in-keeping with Howai's 2013 Budget statement in the House of Representatives, the report discloses. The report notes that the release indicated "a brief delay was experienced from the original date of Nov. 1, 2012 but this was to ensure that all of the procedural systems were in place for the payouts, and to minimize any difficulties." The report relates that the process involved the Liquidator dispatching packages to each depositor. The packages included the details of the process involved in paying each depositor, the report adds. About HCU Hindu Credit Union Co-Operative Society Limited (HCU) -- http://www.ourhcu.com/-- is headquartered in Borough, Chaguanas, in Trinidad and Tobago. * * * As reported in the Troubled Company Reporter-Latin America on Jan. 4, 2012, Trinidad Express said that former Hindu Credit Union President Harry Harnarine said that the Trinidad and Tobago government is "fooling" depositors and shareholders with its "Offer of Relief" and any attempt at payments would be prevented by legal complications. Trinidad Express related that Mr. Harnarine also pointed out that the clause in the Offer of Relief was for credit union members to transfer their rights to the government. Mr. Harnarine, Trinidad Express relayed, argued that members would be in contempt of court if they gave up their rights, as a credit union share was vested in the society, and this would be blocked by the State Solicitor and attorneys. The failed credit union was put into liquidation by the government in 2009. The High Court of Trinidad and Tobago granted the government full control of Hindu Credit as the company faces financial difficulties, leaving depositors in limbo despite requests from lawyers. In June 2008, chartered accountants Ernst and Young inspected Hindu Credit's books, accounts, and records after a public outcry and calls for an internal audit. Charles Mitchell, the Commissioner for Co-Operative Development, represents Hindu Credit's depositors. =============== X X X X X X X X =============== * BOND PRICING: For the Week From June 3 to 7, 2013 --------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- ARGENTINA --------- Argentine International Bond 7.82 12/31/2033 EUR 58.15 Argentine International Bond 7.82 12/31/2033 EUR 57.65 Venezuela International Bond 7 3/31/2038 USD 71.25 Cia Energetica de Sao Paulo 9.75 1/15/2015 BRL 72.5 Petroleos de Venezuela SA 5.5 4/12/2037 USD 60.5 Gol Finance 8.75 USD 76.5 Argentine International Bond 8.28 12/31/2033 USD 56 Renhe Commercial Holdings Co Ltd 11.75 5/18/2015 USD 66 Renhe Commercial Holdings Co Ltd 13 3/10/2016 USD 60 Provincia de Buenos Aires/Argentina 10.87 1/26/2021 USD 69.92 EDENOR 9.75 10/25/2022 USD 52 Banco Bonsucesso SA 9.25 11/3/2020 USD 73 Emerald Plantation Holdings Ltd 6 1/30/2020 USD 67.5 Bank Austria Creditanstalt Finance Cayman Ltd 1.61 EUR 49.88 Capex SA 10 3/10/2018 USD 74 China Forestry Holdings Co Ltd 10.25 11/17/2015 USD 42 CLISA 9.5 12/15/2016 USD 61.5 Provincia de Buenos Aires/Argentina 9.37 9/14/2018 USD 68.33 Banco Macro SA 9.75 12/18/2036 USD 72.7 BES Finance Ltd 5.58 69.67 Bank Austria Creditanstalt Finance Cayman Ltd 2 1.83 EUR 48 Provincia de Buenos Aires/Argentina 9.62 4/18/2028 USD 63.28 Argentine International Bond 8.28 12/31/2033 USD 62.13 Sifco SA 11.5 6/6/2016 USD 57.68 Transer S. 8.87 12/15/2016 USD 52.5 Renhe Commercial Holdings Co Ltd 13 3/10/2016 USD 61.13 JinkoSolar Holding Co Ltd 4 5/15/2016 USD 58.62 ESFG International Ltd 5.753 EUR 57.48 Provincia de Mendoza Argentina 5.5 9/4/2018 USD 74.28 BCP Finance Co Ltd 4.2 EUR 45.17 Transer S.A 9.75 8/15/2021 USD 48 Argentine International Bond 8.28 12/31/2033 USD 58.13 BCP Finance Co Ltd 5.54 EUR 45 Edenor 10.5 10/9/2017 USD 51.25 Argentine International Bond 1.18 12/31/2038 ARS 45.72 BES Finance Ltd 3.03 EUR 74.25 MetroGas SA 8.87 12/31/2018 USD 68.63 Argentina Bocon 23/15/2014 ARS 38.45 Edenor 9.75 10/25/2022 USD 49.13 Argentine International Bond 7.82 12/31/2033 EUR 45 Transer S.A 9.75 8/15/2021 USD 46 Banco Finantia International Ltd 2.45 7/26/2017 EUR 44.05 BES Finance Ltd 4.5 EUR 61.5 Punch Taverns Finance B Ltd 6.9 6/30/2028 GBP 62.13 Argentine International Bond 4.3 12/31/2033 JPY 36 Bolivarian Republic of Venezuela 7 3/31/2038 USD 69.19 Provincia de Buenos Aires/Argentina 10.8 1/26/2021 USD 70.25 Argentine International Bond 4.3 12/31/2033 JPY 36.5 China Forestry Holdings Co Ltd 10.25 11/17/2015 USD 42 Argentine International Bond 8.28 12/31/2033 USD 58.13 Renhe Commercial Holdings Co Ltd 11.75 5/18/2015 USD 66.38 Puerto Rico Conservation 6.5 4/1/2016 USD 67.61 Capex SA 10 3/10/2018 USD 71.75 Argentine International Bond 9 11/29/2018 USD 74 City of Buenos Aires Argentina 3.98 3/15/2018 USD 68.75 Caixa Geral De Depositos Finance 1.01 EUR 35.45 Banco Macro SA 9.75 12/18/2036 USD 71 Gol Finance 8.75 USD 73.13 Provincia de Buenos Aires/Argentina 9.37 9/14/2018 USD 68.5 ERB Hellas Cayman Islands Ltd 9 3/8/2019 EUR 26.38 MetroGas SA 8.87 12/31/2018 USD 71.25 Argentine International Bond 8.28 12/31/2033 USD 57.75 Banif Finance Ltd 1.58 EUR 44 Argentine International Bond 0.45 12/31/2038 JPY 8 Banco BPI SA/Cayman Islands 4.15 11/14/2035 EUR 53.5 Provincia de Buenos Aires/Argentina 9.62 4/18/2028 USD 63.25 Almendral Telecomunicaciones SA 3.51 2/15/2014 CLP 44.24 Banco Bonsucesso SA 9.25 11/3/2020 USD 70.75 Banco Macro SA 9.75 12/18/2036 USD 71 Provincia del Chaco 4 11/4/2023 USD 54 BCP Finance Bank Ltd 5.0 13/31/2024 EUR 72.63 Formosa Province of Argentina 5 2/27/2022 USD 61.63 CAM Global Finance 6.08 12/22/2030 EUR 69.63 Cia Sud Americana de Vapores SA 6.4 10/1/2022 CLP 69.99 Aguas Andinas SA 4.15 12/1/2026 CLP 72.27 Provincia del Chaco 4 12/4/2026 USD 25.88 Talca Chillan Sociedad Concesionaria SA 2.75 12/15/2019 CLP 66.57 Cia Cervecerias Unidas SA 4 12/1/2024 CLP 58.32 Provincia de Mendoza Argentina 5.5 9/4/2018 USD 74.13 Petroleos de Venezuela SA 5.37 4/12/2027 USD 64.15 Quinenco SA 3.5 7/21/2013 CLP 12.87 Metro S.A. 5.5 7/15/2027 CLP 3.0 *********** 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 * * *