TCRLA_Public/130711.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     L A T I N   A M E R I C A

           Thursday, July 11, 2013, Vol. 14, No. 136


                            Headlines



A R G E N T I N A

GOL SRL: Trustee Verifying Proofs of Claim Until July 31
LUCAFE TEXTIL: Trustee Verifying Proofs of Claim Until Aug. 16
OPGAS SA: Trustee Verifying Proofs of Claim Until Aug. 12
TRADINGSUR SA: Trustee Verifying Proofs of Claim Until Aug. 9


B R A Z I L

JBS SA: USA Unit Contests Alleged Health And Safety Violations
OGX PETROLEO: Must Sign With Brazil's ANP Before Selling Licenses


C A Y M A N  I S L A N D S

ASIA PACIFIC: Members to Hold Final Meeting on July 29
BLACKSTONE EDO: Shareholders to Hold Final Meeting on July 25
CAYMAN CABIUNAS: Shareholder to Receive Wind-Up Report on Aug. 9
FINISTERRE EQUITY: Shareholders to Hold Final Meeting on Aug. 5
KY IMAGING: Shareholder to Receive Wind-Up Report on July 24

MAG III: Shareholders to Hold Final Meeting on July 23
MENDIP LIMITED: Shareholder to Receive Wind-Up Report on July 23
TORO BRAVO: Shareholders to Hold Final Meeting on July 31
TORO BRAVO INTL: Shareholders to Hold Final Meeting on July 31
VEGAPLUS CAPITAL: Shareholders to Hold Final Meeting on Aug. 5


C O L O M B I A

* COLOMBIA: Moody's Notes Strong Premium Growth for Insurers


J A M A I C A

ALCOA: Second Quarter Loss Reaches US$119 Million


M E X I C O

* Moody's Raises Jalisco's Issuer Rating to Ba2; Outlook Stable


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Signs Shelf Exploration Deal With Rosneft


X X X X X X X X

* LatAm Sovereigns Not Immune to Changing External Conditions
* Upcoming Meetings, Conferences and Seminars


                            - - - - -


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A R G E N T I N A
=================


GOL SRL: Trustee Verifying Proofs of Claim Until July 31
--------------------------------------------------------
Alejandro Cristian Gurgo, the court-appointed trustee for Gol
SRL's bankruptcy proceedings will be verifying creditors' proofs
of claim until July 31, 2013.

Mr. Gurgo will present the validated claims in court as individual
reports.  The National Commercial Court of First Instance No. 19
in Buenos Aires, with the assistance of Clerk No. 38, will
determine if the verified claims are admissible, taking into
account the trustee's opinion, and the objections and challenges
that will be raised by the company and its creditors.

The Trustee can be reached at:

          Alejandro Cristian Gurgo
          Luis Saenz Pena 352
          Buenos Aires, Argentina


LUCAFE TEXTIL: Trustee Verifying Proofs of Claim Until Aug. 16
--------------------------------------------------------------
Vilma Vaecio, the court-appointed trustee for Lucafe Textil SRL's
bankruptcy proceedings will be verifying creditors' proofs of
claim until Aug. 16, 2013.

Ms. Vaecio will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 17 in Buenos Aires, with the assistance of Clerk
No. 34, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.

The Trustee can be reached at:

          Vilma Vaecio
          Tucuman 1455
          Argentina


OPGAS SA: Trustee Verifying Proofs of Claim Until Aug. 12
----------------------------------------------------------
Daniel Alberto Coto, the court-appointed trustee for Opgas SA's
bankruptcy proceedings will be verifying creditors' proofs of
claim until Aug. 12, 2013.

Mr. Coto will present the validated claims in court as individual
reports.  The National Commercial Court of First Instance No. 9 in
Buenos Aires, with the assistance of Clerk No. 17, will determine
if the verified claims are admissible, taking into account the
trustee's opinion, and the objections and challenges that will be
raised by the company and its creditors.

The Trustee can be reached at:

          Daniel Alberto Coto
          Montevideo 711
          Buenos Aires, Argentina


TRADINGSUR SA: Trustee Verifying Proofs of Claim Until Aug. 9
--------------------------------------------------------------
Raul Brener, the court-appointed trustee for Tradingsur SA's
bankruptcy proceedings will be verifying creditors' proofs of
claim until Aug. 9, 2013.

Mr. Brener will present the validated claims in court as
individual reports.  The National Commercial Court of First
Instance No. 7 in Buenos Aires, with the assistance of Clerk
No. 14, will determine if the verified claims are admissible,
taking into account the trustee's opinion, and the objections and
challenges that will be raised by the company and its creditors.

The Trustee can be reached at:

          Raul Brener
          Tucuman 1335
          Buenos Aires, Argentina


===========
B R A Z I L
===========


JBS SA: USA Unit Contests Alleged Health And Safety Violations
--------------------------------------------------------------
Steve Lynn at Northern Colorado Business reports that JBS USA in
Greeley is contesting 20 health and safety violations alleged by
the Occupational Safety and Health Administration (OSHA), a
spokesman for the federal agency said.

JBS USA, a leading animal protein processor in the U.S. and
Australia, is a wholly owned subsidiary of Brazil-based JBS S.A.

OSHA said that JBS USA faces $83,000 in fines from OSHA in 11
"serious," eight "other-than-serious" and one "repeat" violation,
according Northern Colorado Business.

The report notes that JBS USA workers at the company's Greeley
beef plant were exposed to unsafe working conditions that could
lead to possible amputations and fall hazards, OSHA said earlier
this month.  The report relates that they were also allegedly were
exposed to high noise levels, high concentrations of carbon
dioxide, an exposed electrical box and an unsafe ladder, among
other hazards.

The report notes that OSHA said it began inspecting JBS USA's in
December under a program that focuses enforcement on workplaces
where high injury and illness rates occur.

The report says that the OSHA Review Commission will decide on the
case, though no hearing date or location has been set, the
spokesman said. The Review Commission, a separate federal agency,
decides on cases stemming from inspections conducted by OSHA.

The report discloses that cases are assigned to a Review
Commission judge in Washington, D.C., or one of the agency's
regional offices in Atlanta and Denver. A hearing date and site is
then selected.

The report relays that during the hearings, government prosecutors
represent OSHA and bear the burden of proving alleged violations.

Employees and employers may appear with or without attorneys.
Judges decide on the cases, which can be appealed to a three-
member commission in Washington, D.C., the report says.

The report says that the OSHA spokesman declined to release
documents to the Business Report related to JBS USA's case. JBS
representatives did not return phone calls.

JBS USA, Inc. is a beef and pork processing company.  Its largest
business segments are domestic beef processing (62.9% of gross
sales for the twenty-six weeks ended June 29, 2008), domestic pork
processing (20.1%) and beef operations in Australia (17%).  Sales
from July 10, 2007, when JBS USA, Inc. was purchased by JBS S.A.,
to June 29, 2008 were approximately $10.6 billion.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 14, 2013, Fitch Ratings has placed JBS S.A.'s (JBS) ratings
on Negative Watch following the announcement that it will acquire
certain assets from Marfrig Alimentos S.A.'s (Marfrig), including
Marfrig's Seara Brazil (Seara) business through the assumption of
BRL5.85 billion (USD2.9 billion) of Marfrig's bank debt with
maturities between 2013 and 2017. The completion of the
transaction would require the approval of CADE, the Brazilian
antitrust authority.


OGX PETROLEO: Must Sign With Brazil's ANP Before Selling Licenses
-----------------------------------------------------------------
Rodrigo Orihuela & Karen Eeuwens at Bloomberg News reports that
OGX Petroleo & Gas Participacoes SA (OGXP3), will have to sign
contracts with Brazil's oil regulator before going ahead with a
plan to sell stakes in licenses, the chief regulator said.

OGX hasn't informed the regulatory agency, known as ANP, about
plans to sell shareholdings in 10 licenses awarded in an auction
in May, Magda Chambriard said in an interview in London, according
to Bloomberg News.

Rio de Janeiro-based OGX "is in talks over the blocks it won
without partners," the company said in a regulatory filing after
markets closed, Bloomberg News relays.

Bloomberg News relates that OGX, controlled by billionaire Eike
Batista, could be left with as little as $13 million cash by the
end of the year, Credit Suisse AG said July 2, a day after the
company announced it may shut its only producing oil field next
year and said three others aren't commercially viable.

OGX's shares have lost 89 percent this year, the most among more
than 250 producers in the Americas worth at least US$100 million
tracked by Bloomberg.

Bloomberg News says that in the May auction, OGX won 10 licenses
to operate blocks and three others in partnership with Exxon Mobil
Corp., Total SA and QGEP Participacoes SA.  The company must pay
the ANP BRL377 million (US$167 million) in so-called bid bonuses
for the licenses it acquired in May, Bloomberg News notes.

Bloomberg News relays that ANP won't investigate OGX's previous
production targets because they weren't submitted to the oil
regulator, Mr. Chambriard said.

OGX said in company presentations as recently as early 2012 that
it planned to reach production of 1.38 million barrels a day in
2019, Bloomberg News notes.

Those projections were withdrawn after output at the Tubarao Azul
field missed expectations, Bloomberg News adds.

As reported in the Troubled Company Reporter-Latin America on
July 4, 2013, Standard & Poor's Ratings Services lowered its
corporate credit rating on OGX Petroleo e Gas Participacoes S.A.
(OGX) to 'CCC' from 'B-'.  The outlook remains negative.  The
downgrade is primarily based on the company's recently announced
sharply lower production development plan.  According to the
announcement, the three wells at the Tubarao Azul field may cease
production by 2014 due to the company's lack of currently
available technology that would economically allow it to further
increase its production curve.  In addition, OGX cancelled the
orders for new oil platforms, and it won't develop the Tubarao
Tigre, Tubarao Gato, and Tubarao Areia fields.  Tubarao Martelo
field will be the only oil field that OGX is planning to  develop.


==========================
C A Y M A N  I S L A N D S
==========================


ASIA PACIFIC: Members to Hold Final Meeting on July 29
------------------------------------------------------
The members of Asia Pacific Haven Fund will hold their final
meeting on July 29, 2013, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

          CDL Company Ltd.
          P.O. Box 31106 Grand Cayman KY1-1205
          Cayman Islands


BLACKSTONE EDO: Shareholders to Hold Final Meeting on July 25
--------------------------------------------------------------
The shareholders of Blackstone EDO Offshore Fund, Ltd will hold
their final meeting on July 25, 2013, at 10:00 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Sean Flynn
          HF Fund Services Ltd
          PO Box 242
          45 Market Street, Gardenia Court, Camana Bay
          Grand Cayman KY1-1104
          Cayman Islands


CAYMAN CABIUNAS: Shareholder to Receive Wind-Up Report on Aug. 9
----------------------------------------------------------------
The shareholder of Cayman Cabiunas Investment Co., Ltd. will
receive on Aug. 9, 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:

          Fabio Barreto Lourenco
          Avenida Republica do Chile 65
          10th. Floor, Room 1004
          Centro, Rio de Janeiro
          RJ, Brazil
          Telephone: +5 (521) 3224 3067


FINISTERRE EQUITY: Shareholders to Hold Final Meeting on Aug. 5
----------------------------------------------------------------
The shareholders of Finisterre Equity Master Fund will hold their
final meeting on Aug. 5, 2013, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Jonathan Nicholson
          P.O. Box 1976 Grand Cayman KY1-1104
          Cayman Islands


KY IMAGING: Shareholder to Receive Wind-Up Report on July 24
------------------------------------------------------------
The shareholder of KY Imaging Ltd. will receive on July 24, 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:

          Priestleys
          c/o Martina de Lima
          Telephone: (345) 946 8577


MAG III: Shareholders to Hold Final Meeting on July 23
------------------------------------------------------
The shareholders of MAG III Aviation Inc. will hold their final
meeting on July 23, 2013, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Tarek Amer
          c/o Barnaby Gowrie
          Telephone: +1 (345) 914 6365


MENDIP LIMITED: Shareholder to Receive Wind-Up Report on July 23
-----------------------------------------------------------------
The shareholder of Mendip Limited will receive on July 23, 2013,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Sonja Zuberbuhler
          Telephone:  +41 (58) 450 5811
          Facsimile:  +41 (58) 450 5853
          c/o Kendris Ltd.
          Muhlemattstrasse 56, 5001 Aarau
          Switzerland


TORO BRAVO: Shareholders to Hold Final Meeting on July 31
----------------------------------------------------------
The shareholders of Toro Bravo Fishing Ltd. will hold their final
meeting on July 31, 2013, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Wendy L Cutri
          280 Soledad Place
          Coronado, CA 92118
          USA
          Telephone: (619) 435 2602
          280 Soledad Place
          Coronado, CA 92118
          USA


TORO BRAVO INTL: Shareholders to Hold Final Meeting on July 31
---------------------------------------------------------------
The shareholders of Toro Bravo Fishing International Ltd. will
hold their final meeting on July 31, 2013, at 10:00 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Wendy L Cutri
          280 Soledad Place
          Coronado, CA 92118
          USA
          Telephone: (619) 435 2602
          280 Soledad Place
          Coronado, CA 92118
          USA


VEGAPLUS CAPITAL: Shareholders to Hold Final Meeting on Aug. 5
---------------------------------------------------------------
The shareholders of Vegaplus Capital Partners Limited will hold
their final meeting on Aug. 5, 2013, at 3:00 p.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Peter Anderson
          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


===============
C O L O M B I A
===============


* COLOMBIA: Moody's Notes Strong Premium Growth for Insurers
------------------------------------------------------------
The Colombian insurance market is undergoing a period of strong
premium volume growth which, coupled with new insurance
regulations, is driving further development of the industry and
greater competition among insurers, says Moody's Investors Service
in its new special comment Colombian Insurance: Industry
Scorecard."

Moody's industry scorecards are a point-in-time analysis of a
specific sector within the global insurance industry and highlight
the key credit factors Moody's reviews when assessing insurers in
this sector, consistent with published rating methodologies.

"The Colombian insurance market is growing rapidly, with 13.4%
premium volume growth in 2012," said Alejandro Pavlov, a Moody's
Vice President --Senior Analyst and author of the report. "This
healthy growth, and the recently implemented regulatory changes
are driving competition among insurers."

The Colombian insurance market is the sixth largest in the Latin
America region and is a mature market with 45 international and
domestic insurers writing life and non-life insurance products,
notes Moody's. The industry produced an estimated US$ 8.8 billion
in premiums in 2012.

In addition, investment-grade ratings in the sector are supported
by Colombian insurers' investment portfolios that consist
primarily of national government bonds (Baa3/positive) and local
bank term deposits.

But the industry faces challenges in the years ahead, says the
rating agency. These include continued modest penetration of
insurance in the Colombian economy, which constrains the country's
operating environment, exposures to catastrophe losses arising
from earthquakes as well as frequent floods caused by the "La
Nia" phenomenon, and insurers' high reliance on investment
returns to offset weak underwriting results.


=============
J A M A I C A
=============


ALCOA: Second Quarter Loss Reaches US$119 Million
-------------------------------------------------
RJR News reports that there's worrying news concerning Alcoa Inc.
The company's second-quarter loss widened due to weak aluminum
prices, although the results were better than expected after
backing out restructuring and legal costs, notes the report.

RJR News relates that Alcoa Inc. is reporting that it lost US$119
million in the April-through-June quarter.  That compares with a
loss of US$2 million dollars, a year ago, says the report.

News of the loss comes on the heels of a report that Jamaica's
bauxite industry is facing pressure to recover as aluminum prices
fell to a four-year low, RJR News notes.

Prices for aluminum on the London Metal Exchange, declined to
US$1,758 per metric ton, RJR News says.  The report relates that
it is the lowest prices have been since July 2009, and is forcing
major players in the industry to cut capacity.

RJR News discloses that Alcoa has already confirmed the shutdown
of 149,000 tonnes of capacity so far in 2013, on top of 531,000
tonnes taken offline last year.  The company is also reviewing
production at other plants worldwide, but did not say which ones,
the report adds.

Alcoa is a part owner of the Jamalco Plant in Clarendon, Jamaica.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 31, 2013, Moody's Investors Service downgraded the senior
unsecured debt ratings of Alcoa Inc. to Ba1 from Baa3 and assigned
a Ba1 Corporate Family Rating and a Ba1-PD Probability of Default
Rating.  Moody's confirmed the Ba2 preferred stock rating.  At the
same time, Moody's withdrew the company's Prime-3 commercial paper
rating and assigned a Speculative Grade Liquidity Rating of SGL-1.
This concludes the review for downgrade initiated on December 18,
2012.  The rating outlook is stable.


===========
M E X I C O
===========


* Moody's Raises Jalisco's Issuer Rating to Ba2; Outlook Stable
---------------------------------------------------------------
Moody's de Mexico upgraded the issuer ratings of the State of
Jalisco to A2.mx (Mexican National Scale) and Ba2 (Global Scale,
local currency) from Baa3.mx and B1, respectively. At the same
time Moody's revised Jalisco's outlook to stable from negative.

Additionally, Moody's upgraded to Baa3 and Aa3.mx from Ba2 and
A2.mx, respectively, the debt ratings of the following four
enhanced loans:

- MXN 1 billion (original face value) enhanced loan from Banobras
with a maturity of 15 years and a pledge of 1.60% of Jalisco's
general fund participation revenues.

- MXN 665 million (original face value), enhanced loan from
Interacciones with a maturity of 20 years and a pledge of 1.85% of
Jalisco's general fund participation revenues.

- MXN 650 million (original face value) enhanced loan from
Scotiabank with a maturity of 15 years and a pledge of 1.24% of
Jalisco's general fund participation revenues.

- MXN 409 million enhanced loan from Santander (original face
value) with a maturity of 20 years and a pledge of 0.59% of
Jalisco's general fund participation revenues.

Moody's also upgraded to Ba1/A1.mx from Ba3/Baa1.mx debt ratings
of the following four enhanced loans:

- MXN 1.1 billion (original face value) enhanced loan from Banco
del Bajio, with a maturity of 15 years and a pledge of 1.50% of
Jalisco's general fund participation revenues.

- MXN 632 million (original face value) enhanced loan from
Banorte, with a maturity of 20 years and a pledge of 0.80% of
Jalisco's general fund participation revenues.

- MXN 389 million (original face value) enhanced loan from
Banobras, with a maturity of 20 years and a pledge of 0.88% of
Jalisco's general fund participation revenues.

- MXN 374.7 million (original face value) enhanced loan from
Banorte, with a maturity of 20 years and a pledge of 0.38% of
Jalisco's general fund participation revenues.

Ratings Rationale:

The upgrade of Jalisco's issuer ratings to Ba2/A2.mx reflects
Moody's assessment of Jalisco's credit profile following the post-
default actions undertaken by the new administration. The upgrade
also reflects Jalisco's strong economic fundamentals and moderate
debt levels.

In January 2013, 23 days after defaulting on a MXN 1.4 billion
short-term loan with Banco Interacciones, the State of Jalisco
repaid in full its obligation without imposing any loss to the
lender. Throughout the default, the state continued to timely
honor all of its outstanding debt obligations.

A new administration, in office since March 2013, introduced new
Rules to improve the state's debt management practices. The new
Rules include the obligation to secure short-term debt with a
specific revenue pledge to ensure its repayment. In addition,
short-term debt will be registered at the federal government's
debt registry. These measures add transparency and strengthen the
state's debt management framework.

The ratings are also supported by a strong and diversified economy
that accounts for 6.6% of Mexico's GDP, moderate debt levels
(21.4% of total revenues in 2012) and a weak liquidity position.
Net working capital (current assets less current liabilities
including the short-term loan) was equivalent to -6.1% of total
expenditures in 2012. Net direct and indirect debt to total
revenue is expected to remain relatively stable. Moody's notes
that the state has no plans to contract short-term debt in the
near future.

The change of outlook to stable reflects Moody's view that the
refinancing risks that resulted from the right of some lenders to
accelerate or early amortize their loans have been reduced
significantly and are not expected to materialize. Banks waived
their right to early amortize or accelerate their loans and
Jalisco continues to have easy access to bank financing.

The ratings upgrade of the eight enhanced loans reflects the
upgrade of Jalisco's issuer ratings, as well as the significant
reduction of risks associated with rights that have some lenders
to accelerate or early amortize their loans.

What Could Change The Ratings Up/Down

The recording of balanced financial results that limits borrowing
needs and leads to a significant improvement of liquidity could
exert upward pressure on the ratings.

If liquidity decreases and the state fails to reduce its cash
financing requirements and to follow the stated short-term debt
rules, the ratings could face downward pressure.

Given the links between the eight enhanced loans and the credit
quality of the obligor, an upgrade of the State of Jalisco's
issuer ratings rating would likely result in an upgrade of the
ratings on the enhanced loans. Conversely, a downgrade of
Jalisco's issuer ratings could also exert downward pressure on the
debt ratings of the loans. In addition, the ratings could face
downward pressure if debt service coverage levels fall materially
below Moody's expectations.

The principal methodologies used in this rating were Regional and
Local Governments published on 18-Jan-2013 and Enhanced Municipal
and State Loans in Mexico published on 27-Jan-2011.


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V E N E Z U E L A
=================


PETROLEOS DE VENEZUELA: Signs Shelf Exploration Deal With Rosneft
-----------------------------------------------------------------
RIANOVOSTI reports that Petroleos de Venezuela S.A. and Russia's
state-owned oil-and-gas giant Rosneft signed an agreement to
jointly develop extensive offshore deposits in South America.

Venezuelan Oil Minister and PDVSA head Rafael Ramirez, who
attended the signing ceremony, said the deal envisaged joint work
on five gas blocks off Venezuela, including the Mariscal Sucre
project and the Blanquilla and Tortuga deposits, with their total
reserves estimated at 21 trillion cubic feet, according to
RIANOVOSTI.  "Investment in Mariscal Sucre alone will total at
least $5 billion," the report quoted Mr. Ramirez as saying.

The report notes that Gazprombank, which is affiliated with
Russian energy giant Gazprom, said that it had signed a deal with
Venezuela's PDVSA to invest $1 billion in their joint venture,
PetroSamora.

"Today an agreement has been signed on the basic terms of
financing a contract for crude oil production and delivery, with
total financing at $1 billion," said Gazprombank deputy Chief
Executive Officer Alexander Muranov, the report notes.

Venezuela holds 60 percent in PetroSamora, while Gazprombank holds
40 percent.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 20, 2013, Standard & Poor's Ratings Services lowered its
long-term corporate credit and senior unsecured debt ratings on
Petroleos de Venezuela S.A. (PDVSA) to 'B' from 'B+'.  The outlook
remains negative.


===============
X X X X X X X X
===============


* LatAm Sovereigns Not Immune to Changing External Conditions
-------------------------------------------------------------
Sovereign rating actions in Latin America have had a positive bias
in 1H13, according to Fitch Ratings. Positive rating actions in
1H13 have included the rating upgrades of Mexico and Uruguay and
the revision of Colombia's Rating Outlook to Positive from Stable.
The only negative rating action was on Jamaica where Fitch
downgraded the Foreign Currency and Local Currency Issuer Default
Ratings (IDRs) to Restricted Default ('RD'). The downgrade took
place in February following the implementation of a domestic debt
exchange that adversely impacted the original contractual terms of
domestic bondholders.

The Rating Outlook for the majority of sovereigns in the region is
Stable, which suggests that positive and negative rating pressures
are evenly balanced. Currently, Colombia and Ecuador have a
Positive Outlook, and El Salvador, Venezuela and Argentina's Local
Currency IDRs have a Negative Outlook.

'Slow global recovery, slower domestic demand growth, softer
commodity prices and country-specific factors are leading to a
slowdown in most of the regional economies in 2013,' said Shelly
Shetty, Head of Fitch's Latin America Sovereigns Group. 'As a
result, improvements in fiscal and external solvency and liquidity
indicators may be hindered, thus weighing on the upward potential
of sovereign ratings.'

Fitch is projecting Latin America's real GDP growth will reach
2.9% in 2013 compared to its previous forecast of 3.3%. However,
excluding Brazil, Latin America's real GDP will slow to 3.2% in
2013 from 4.1% in 2012.

Fitch expects the multiple speed growth in the region to continue.
The five highest growth countries are Bolivia, Chile, Peru, Panama
and Paraguay, with the latter forecasted to be the fastest growing
economy in the region after a mild contraction observed in 2012.
The smaller economies of Ecuador, Colombia and Suriname will
record growth above 4% in 2013, while Brazil and Mexico are
forecasted to drag the regional performance by growing at 2.5% and
3%, respectively. On the other hand, El Salvador, Jamaica and
Venezuela will underperform with growth below 2% in these
countries.

With the exception of Brazil and Uruguay, most inflation-targeting
countries have well-contained inflation, which should give them
space to cut rates should economic conditions deteriorate.
However, the recent volatility and depreciating pressure on
regional currencies may hinder the monetary flexibility to some
extent. Colombia and Mexico have already cut interest rates.

Brazil faces a difficult growth-inflation tradeoff as the central
bank has recently accelerated the pace of interest rate hikes to
respond to the resilient inflationary pressures even in the face
of a gradual economic recovery. Argentina and Venezuela will
continue to have the highest inflation rates in the region.

Fiscal deterioration is expected in several countries as revenue
growth slows on the back of the economic slowdown and lower
commodity prices. Government debt reductions will likely slow,
although improvements in debt composition and financing
flexibility will mitigate rising fiscal risks. With the exception
of Brazil, and on a more modest scale, Colombia and the Dominican
Republic, most countries have refrained from introducing pro-
growth fiscal measures, but the option cannot be ruled out if
domestic conditions begin to deteriorate more quickly.

In the investment grade category, low debt countries with fiscal
buffers like Chile and Peru have the most fiscal space to
implement counter-cyclical fiscal policies. Brazil, Colombia,
Mexico and Uruguay are more constrained. In the speculative grade
space, several Central American and the Caribbean countries
continue to face weak growth prospects and challenging debt
dynamics that will limit their ability to provide stimulus. Costa
Rica will incur the highest fiscal deficit in the region while
Argentina's growing fiscal pressures could lead to greater
monetization of the deficit given its lack of market access.

On the external front, while softer commodity prices, muted
external demand and resilient imports are expected to pressure
current account balances across countries, continued foreign
direct investment flows and access to foreign funding should
support external financing. Fitch forecasts the accumulation of
international reserves to slow in 2013 but the stock should reach
USD862 billion, which is materially higher than US492 billion in
2008, thereby providing the cushion to manage currency pressures
and cope with adverse external shocks.

Countries like Brazil, Mexico and Peru have seen a sharp increase
in foreign ownership of government domestic securities while the
private sector across the region has benefited from relatively
easy financing conditions abroad. However, the region is likely to
face occasional bouts of financial volatility on changing
expectations related to the U.S. Federal Reserve's quantitative
easing (QE) tapering and increased risk aversion. In recent weeks,
borrowing costs have increased and regional asset prices have
experienced greater volatility in line with what has been seen in
other emerging markets. However, Fitch believes that deeper
domestic bond markets, greater exchange rate flexibility, a higher
stock of international reserves and some countries' access to the
IMF's Flexible Credit Line could mitigate the impact of higher
international volatility.

Elections were held in Paraguay and Venezuela in 1H13. The tight
victory margin in the Presidential elections in Venezuela could
maintain political uncertainty and reduce the scope and pace of
policy adjustments. The election calendar is relatively light in
2H13 with legislative elections in Argentina in October and
general elections in Aruba in September and Chile in November. The
electoral calendar heats up in 2014 with several countries
including Brazil, Bolivia, Colombia, Costa Rica, El Salvador,
Panama and Uruguay holding presidential elections. Fitch does not
foresee dramatic shifts in economic policies following the
elections in most countries.

'Structural weaknesses continue to weigh down creditworthiness in
Latin America. While the reform process has gained some momentum
in Mexico, progress in the region overall remains spotty and is
likely to be further slowed by the heavy electoral calendar in
2014,' said Shetty. 'These reforms are crucial to boost domestic
competitiveness, investment and to provide for a sustainable
growth trajectory in light of the gradual global recovery and the
fading tailwinds from commodity prices and easy financing
conditions.'


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

July 18-21, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Southeast Bankruptcy Workshop
         The Ritz-Carlton Amelia Island, Amelia Island, Fla.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Aug. 8-10, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Mid-Atlantic Bankruptcy Workshop
         Hotel Hershey, Hershey, Pa.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Aug. 22-24, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Southwest Bankruptcy Conference
         Hyatt Regency Lake Tahoe, Incline Village, Nev.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Oct. 3-5, 2013
   TURNAROUND MANAGEMENT ASSOCIATION
      TMA Annual Convention
         Marriott Wardman Park, Washington, D.C.
            Contact: http://www.turnaround.org/

Nov. 1, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      NCBJ/ABI Educational Program
         Atlanta Marriott Marquis, Atlanta, Ga.
            Contact:   1-703-739-0800; http://www.abiworld.org/

Dec. 2, 2013
   BEARD GROUP, INC.
      19th Annual Distressed Investing Conference
          The Helmsley Park Lane Hotel, New York, N.Y.
          Contact:   240-629-3300 or http://bankrupt.com/

Dec. 5-7, 2013
   AMERICAN BANKRUPTCY INSTITUTE
      Winter Leadership Conference
         Terranea Resort, Rancho Palos Verdes, Calif.
            Contact:   1-703-739-0800; http://www.abiworld.org/


                            ***********


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.


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