TCRLA_Public/130718.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 18, 2013, Vol. 14, No. 141


                            Headlines



A N T I G U A  &  B A R B U D A

LIAT: Seeks To Improve Service as Pilots Raise Several Issues


A R G E N T I N A

CLISA: S&P Affirms 'B-' Rating; Outlook Negative


B R A Z I L

* Moody's Examines Features of Brazil's Bankruptcy Law


C A Y M A N  I S L A N D S

ALECTO FUND: Placed Under Voluntary Wind-Up
BB ALPHA: Creditors' Proofs of Debt Due Aug. 15
BB TOROS: Creditors' Proofs of Debt Due Aug. 15
DIAMOND PACIFIC: Creditors' Proofs of Debt Due Aug. 26
JRG COMPANY: Creditors' Proofs of Debt Due Aug. 26

LITTLE THING: Creditors' Proofs of Debt Due Aug. 27
MUTUAL FUND: Creditors' Proofs of Debt Due Aug. 15
NB SOF II: Creditors' Proofs of Debt Due Aug. 13
NEW WORLD: Creditors' Proofs of Debt Due Aug. 13
OCEAN EMPIRE: Creditors' Proofs of Debt Due Aug. 26

PREMIER HEDGE: Creditors' Proofs of Debt Due Aug. 15
TEXAR INSURANCE: Commences Liquidation Proceedings
TRISKELE CAPITAL: Creditors' Proofs of Debt Due Aug. 15
UNIBANCO BRAZIL: Commences Liquidation Proceedings


C O L O M B I A

TUSCANY INTERNATIONAL: S&P Affirms 'B' Corporate Credit Rating


D O M I N I C A

* DOMINICA: Seeks US$50 Million For Infrastructure Projects


E L   S A L V A D O R

BANCO AGRICOLA: S&P Affirms 'BB-' Issuer Credit Rating


J A M A I C A

* JAMAICA: Inflation Down 8.8% in June


M E X I C O

URBI: Loses Bid to Dismiss Barclays Suit Over Derivatives


P E R U

BANCO DE LA NACION: Fitch Affirms Viability Rating at 'bb+'


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars


                            - - - - -


===============================
A N T I G U A  &  B A R B U D A
===============================


LIAT: Seeks To Improve Service as Pilots Raise Several Issues
-------------------------------------------------------------
Caribbean360.com reports that Leeward Islands Air Transport, known
as LIAT, assured the travelling public that it is committed to
improving the level of service offered by the airline even as
disgruntled pilots warned of "several vexing issues".

The airline did not specifically refer to a statement by the
Chairman of the Leeward Islands Airline Pilots Association
(LIALPA), Carl Burke, that the union had been forced to call an
emergency meeting to seek a mandate from its members on several
vexing issues, according to Caribbean360.com.

The report notes that Mr. Burke had even warned of possible
industrial action if salary negotiations for flying the new ATR
aircraft as well as a new schedule were not discussed with the
company.

The report relates that the company's two new ATR 72-600 aircraft
commenced commercial service earlier this month with an additional
four due to be added by the end of this year.  LIAT confirmed that
talks were taking place with the union and there were no
disruptions in flights, the report relays.

The report says that LIAT Chief Executive Officer Ian Brunton
sought to give assurance to the travelling public in light of a
recent "Open Letter" of complaint to the airline by a long-
standing LIAT customer, Arthur Hicks.

The report relays that Mr. Brunton said that the company had been
in touch by telephone with Hicks and that "it is important to
point out that the substantive letter was not by way of a
complaint, but a light-hearted Facebook entry to his friends".

But Mr. Brunton said the letter was publicized when someone posted
the Facebook entry as a letter in a newspaper in the British
Virgin Islands, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Jan. 3, 2012, Antigua Caribarena related that former Antigua
Aviation Minister Robin Yearwood wants to see a merger between
Leeward Islands Air Transport (LIAT) and the Trinidad and Tobago-
owned Caribbean Airlines Limited, as he believes this is the only
way the Antigua-based regional carrier can survive.  Mr.
Yearwood's call came against the background of media reports out
of Port of Spain that suggested CAL's management may be eyeing
expansion into the OECS territories, according to Antigua
Caribarena.

                            About LIAT

Headquartered in V. C. Bird International Airport in Saint George
Parish, Antigua, Leeward Islands Air Transport, known as LIAT,
operates high-frequency interisland scheduled services serving 22
destinations in the Caribbean.  The airline's main base is VC
Bird International Airport, Antigua and Barbuda, with bases at
Grantley Adams International Airport, Barbados and Piarco
International Airport, Trinidad and Tobago.


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


CLISA: S&P Affirms 'B-' Rating; Outlook Negative
------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B-' ratings on
CLISA-Compania Latinoamericana de Infraestructura & Servicios S.A.
(Clisa).  The outlook remains negative.  The rating affirmation
follows S&P's ordinary annual review.

S&P's ratings on Clisa continues to reflect its assessment of its
"vulnerable" business risk profile and "highly leveraged"
financial risk profile.

Clisa's business is constrained by its high exposure to Argentine
public-sector counterparties, as this often translates into profit
volatility and unexpected swings in working capital.  Clisa's
experience in managing its exposure to Argentina's political
volatility, industry track record, and long-standing ties with
public-sector counterparties partly mitigate these factors.


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


* Moody's Examines Features of Brazil's Bankruptcy Law
------------------------------------------------------
In a new report, Moody's Investors Service discusses key
considerations for investors active in the Brazilian high-yield
non-financial corporate market, in light of the country's
insolvency regime. The report looks first at the main structural
features of Brazilian high-yield companies, and then at how the
bankruptcy code could affect recovery across creditor classes.

"The Brazilian Bankruptcy Law, which came into effect in mid-2005,
seeks to provide more flexibility for distressed companies to
restructure and function as a going concern," says Associate
Managing Director Marianna Waltz in the report titled "Brazilian
Insolvency and Ratings." "But while more than 10,000 companies
have initiated liquidation or recovery proceedings under the new
legislation, very few have actually emerged from bankruptcy,
making it more challenging to evaluate the efficacy of the law."

Nevertheless, the review of the new code and of a number of
recovery plans provide some interesting observations.

As an example, the capital structures of Brazilian high-yield
companies can be highly complex, with a wide variety of debt
classes and structures. "The variety of debt classes, security
arrangements and carve-outs from the bankruptcy process make a
comparable analysis of potential recoveries difficult," says
Waltz.

As an additional challenge to the analysis judicial recoveries can
be very lengthy and subject to certain vagaries such as, among
others, the differences in court expertise across regions , and
legislation omissions, as with the treatment of specific debt
classes.

Another conclusion is that secured creditors have a stronger
position, but can recover less than the collateral value. The
Bankruptcy law states that the removal or substitution of
collateral is only allowed with the underlying creditor's
approval. In practice, however, while the collateral is not
removed the recovery plans can include payment alternatives where
secured creditors receive an amount lower than the collateral
value. Credits secured by the fiduciary alienation of non-
essential assets seem to be better positioned relative to other
creditors, but, they do not ensure creditor recovery and are
subject to the uncertainties in the law.

Looking at structural issues, although the amount of subsidiary
debt tends to be significant in Brazil structural subordination
risk is largely mitigated by upstream guarantees. The use of
substantive consolidation, however, may negate the differentiation
among creditor classes, as in such cases bankruptcy courts treat
companies that belong to the same group as a single entity,
pooling their assets and liabilities and ranking creditors in the
same debt class equitably. "It is difficult to be conclusive on
this, however, since the courts have considerable leeway in
applying the bankruptcy law," Waltz says.

Finally, the Moody's report finds that high-yield bond covenant
packages in Brazil offer protections in the same standard risk
areas as seen in the US, Europe and elsewhere, ranging from asset
sales and restrictions on liens to limits on leverage and change
of control provisions.


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


ALECTO FUND: Placed Under Voluntary Wind-Up
-------------------------------------------
On June 26, 2013, the sole shareholder of Alecto Fund Limited
passed a resolution to voluntarily liquidate the company's
business.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          Avalon Management Limited
          Reference: GL
          Telephone: +1 (345) 769 4422
          Facsimile: +1 (345) 769 9351
          Landmark Square, 1st Floor, 64 Earth Close
          West Bay Beach
          PO Box 715, George Town Grand Cayman KY1-1107
          Cayman Islands


BB ALPHA: Creditors' Proofs of Debt Due Aug. 15
-----------------------------------------------
The creditors of BB Alpha Health are required to file their proofs
of debt by Aug. 15, 2013, to be included in the company's dividend
distribution.

The company commenced liquidation proceedings on June 26, 2013.

The company's liquidator is:

          Intertrust SPV (Cayman) Limited
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9005
          Cayman Islands
          c/o Kim Charaman/Jennifer Chailler
          Telephone: (345) 943 3100


BB TOROS: Creditors' Proofs of Debt Due Aug. 15
-----------------------------------------------
The creditors of BB Toros Prime are required to file their proofs
of debt by Aug. 15, 2013, to be included in the company's dividend
distribution.

The company commenced liquidation proceedings on June 26, 2013.

The company's liquidator is:

          Intertrust SPV (Cayman) Limited
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9005
          Cayman Islands
          c/o Kim Charaman/Jennifer Chailler
          Telephone: (345) 943 3100


DIAMOND PACIFIC: Creditors' Proofs of Debt Due Aug. 26
------------------------------------------------------
The creditors of Diamond Pacific Holdings Limited are required to
file their proofs of debt by Aug. 26, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on June 27, 2013.

The company's liquidator is:

          Lion International Management Limited
          Craigmuir Chambers
          Road Town
          Tortola VG 1110
          British Virgin Islands
          c/o Mr. Philip C Pedro
          HSBC International Trustee Limited
          Compass Point Bermudiana Road
          Hamilton HM 11
          Bermuda
          Telephone: (441) 299 6482
          Facsimile: (441) 299 6526


JRG COMPANY: Creditors' Proofs of Debt Due Aug. 26
--------------------------------------------------
The creditors of JRG Company Limited are required to file their
proofs of debt by Aug. 26, 2013, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on June 27, 2013.

The company's liquidator is:

          Lion International Management Limited
          Craigmuir Chambers
          Road Town Tortola VG 1110
          British Virgin Islands
          c/o Mr. Philip C Pedro
          HSBC International Trustee Limited
          Compass Point Bermudiana Road
          Hamilton HM 11
          Bermuda
          Telephone: (441) 299 6482
          Facsimile: (441) 299 6526


LITTLE THING: Creditors' Proofs of Debt Due Aug. 27
---------------------------------------------------
The creditors of Little Thing Company are required to file their
proofs of debt by Aug. 27, 2013, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on June 26, 2013.

The company's liquidator is:

          Lion International Management Limited
          Craigmuir Chambers
          Road Town, Tortola
          British Virgin Islands
          c/o Mr. Philip C Pedro
          HSBC International Trustee Limited
          Compass Point
          Bermudiana Road
          Hamilton HM 11 Bermuda
          Telephone: (441) 299 6482
          Facsimile: (441) 299 6526


MUTUAL FUND: Creditors' Proofs of Debt Due Aug. 15
--------------------------------------------------
The creditors of Mutual Fund Basket Master Fund (9) are required
to file their proofs of debt by Aug. 15, 2013, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on June 25, 2013.

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


NB SOF II: Creditors' Proofs of Debt Due Aug. 13
------------------------------------------------
The creditors of NB SOF II Offshore Investor Ltd are required to
file their proofs of debt by Aug. 13, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on June 18, 2013.

The company's liquidator is:

          Intertrust SPV (Cayman) Limited
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9005
          Cayman Islands
          c/o Kim Charaman/Jennifer Chailler
          Telephone: (345) 943 3100


NEW WORLD: Creditors' Proofs of Debt Due Aug. 13
------------------------------------------------
The creditors of New World Funding 2008-1, Ltd. are required to
file their proofs of debt by Aug. 13, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on June 25, 2013.

The company's liquidator is:

          Intertrust SPV (Cayman) Limited
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9005
          Cayman Islands
          c/o Kim Charaman/Jennifer Chailler
          Telephone: (345) 943 3100


OCEAN EMPIRE: Creditors' Proofs of Debt Due Aug. 26
---------------------------------------------------
The creditors of Ocean Empire Assets Limited are required to file
their proofs of debt by Aug. 26, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on June 26, 2013.

The company's liquidator is:

          Lion International Management Limited
          Craigmuir Chambers
          Road Town, Tortola
          British Virgin Islands
          c/o Mr. Philip C Pedro
          HSBC International Trustee Limited
          Compass Point
          Bermudiana Road Hamilton HM 11
          Bermuda
          Telephone: (441) 299 6482
          Facsimile: (441) 299 6526


PREMIER HEDGE: Creditors' Proofs of Debt Due Aug. 15
----------------------------------------------------
The creditors of Premier Hedge, Ltd. are required to file their
proofs of debt by Aug. 15, 2013, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on June 20, 2013.

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


TEXAR INSURANCE: Commences Liquidation Proceedings
--------------------------------------------------
At an extraordinary meeting held on June 26, 2013, the members of
Texar Insurance Company, Ltd passed a resolution that voluntarily
liquidates the company's business.

The company's liquidator is:

          Megan Ogden
          Marsh Management Services Cayman Ltd.
          Governors Square, Building 4, 2nd Floor
          23 Lime Tree Bay Avenue
          P.O. Box 1051, Grand Cayman, Cayman Islands
          Cayman Islands


TRISKELE CAPITAL: Creditors' Proofs of Debt Due Aug. 15
-------------------------------------------------------
The creditors of Triskele Capital International Limited are
required to file their proofs of debt by Aug. 15, 2013, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on June 26, 2013.

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


UNIBANCO BRAZIL: Commences Liquidation Proceedings
--------------------------------------------------
On June 17, 2013, the sole shareholder of Unibanco Brazil Hedge
Fund passed a resolution to voluntarily liquidate the company's
business.

The company's liquidator is:

          Philippe Fremau
          R Tium, 00906 apt. 151
          Vila Uberabinha
          Sao Paulo SP


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


TUSCANY INTERNATIONAL: S&P Affirms 'B' Corporate Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit rating on Tuscany International Drilling Inc. (Tuscany).
The rating affirmation follows S&P's regular annual review.  At
the same time, S&P withdrew its 'B' issue rating on Tuscany's
proposed $200 million notes, as the company canceled the issuance.
The outlook is stable.

"The ratings on Tuscany continue to reflect our assessment of the
company's "vulnerable" business risk profile given its
participation in the competitive and highly cyclical onshore
contract drilling industry.  It also reflects Tuscany's relatively
small scale and relatively low entry barriers.  As of March 31,
2013, the company's fleet was comprised of 37 rigs with a 65%
utilization rate, compared with 90% during the same period in
2012.  The drop in the company's utilization rate was mainly due
to some rigs coming off contract in 2012.  However, the company
was able to reallocate those rigs with higher day rates and longer
terms.  We expect utilization rates to recover to about 75% for
2013, allowing the company's financial performance to be in line
with our expectations and the rating," S&P said.

During the first quarter of 2013, average revenue per day fell to
$26.9, from $31.2 for the same period of 2012, as a result of
contract terminations.  "However, the lower day rates are driven
by three key contracts in Colombia where the majority of operating
costs are covered by the operator.  Moreover, the company's day
rates compare well with its international peers," said Standard &
Poor's credit analyst Fabiola Ortiz.  S&P expects Tuscany's
average day rate to increase as a result of its technologically
advanced and relatively young drilling rigs that are specifically
designed to operate within the outdated infrastructure of Latin
American exploration and production (E&P) markets.


===============
D O M I N I C A
===============


* DOMINICA: Seeks US$50 Million For Infrastructure Projects
-----------------------------------------------------------
Caribbean360 reports that the Dominica government said 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. . . . 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," Caribbean360.com
quoted Prime Minister Roosevelt Skerrit as saying.

The report relates 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, the report notes.

"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.


=====================
E L   S A L V A D O R
=====================


BANCO AGRICOLA: S&P Affirms 'BB-' Issuer Credit Rating
------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' long-term
and 'B' short-term issuer credit ratings (ICR) on Banco Agricola
S.A.

The ratings on Banco Agricola reflect S&P's view of its "strong"
(as S&P's criteria define the term) business position, "adequate"
capital and earnings, "adequate" risk position, and its "average"
funding and "adequate" liquidity.  The bank's stand-alone credit
profile (SACP) is at 'bb+'.

S&P's bank criteria use our BICRA economic risk and industry risk
scores to determine a bank's anchor, the starting point in
assigning an issuer credit rating.  The anchor for banks operating
only in El Salvador is 'bb'.  S&P considers economic risks for
Salvadorian banks to be relatively high by global comparison and
S&P do not expect significant improvements in the near term. El
Salvador has had poor economic growth in the past three years, and
medium-term growth prospects remain moderate.  As a result, debt
capacity remains limited, domestic credit demand moderate, and
lending guidelines strict.  Credit stagnation has also undermined
the real estate market and construction sector, which have not
started to recover yet.  S&P views industry risks as slightly
lower as a result of perceived strengthening in institutional
framework.  S&P's assessment reflects the financial sector's
resilience to the 2009 recession and El Salvador's poor economic
performance afterwards.  Although domestic financial regulation is
still not fully compliant with international standards, there has
been recent progress on key areas.  Overall conservative
regulation and supervision standards, coupled with a large
presence of foreign-owned banks, have resulted in a sound
financial system.


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


* JAMAICA: Inflation Down 8.8% in June
--------------------------------------
RJR News reports that consumer price inflation for the past 12
months, slowed to 8.8 percent in June, as the prices of
electricity, gas and other fuels; and water supply fell last
month.

The figure was down from 9.2 percent in May, according to RJR
News.  The report relates that the price declines which occurred
in June, helped to offset increases in the price of fruits in that
month.

The report relays that in June, prices rose only 0.2 percent,
compared with 0.5 percent for May.

RJR News discloses that for the first quarter of the fiscal year,
which is April to June, prices rose only 2 percent, which is the
lower end of the 2 to 3 percent range, targeted by the Bank of
Jamaica.


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


URBI: Loses Bid to Dismiss Barclays Suit Over Derivatives
---------------------------------------------------------
Chris Dolmetsch at Bloomberg News reports that Urbi Desarrollos
Urbanos SAB failed to persuade a New York judge to dismiss a suit
over financial derivatives filed by Barclays Plc.

Barclays's Mexican unit sued Urbi for breach of contract in state
court in Manhattan, saying the builder failed to pay $3 million
that was due March 15 after the bank had to terminate a 2010 swaps
and derivatives agreement, according to Bloomberg News.

Bloomberg News notes that Barclays Bank Mexico SA said in a
complaint filed April 8 that it ended the agreement after Urbi
didn't post additional collateral in January "to cover potential
losses relating to open transactions with the bank."  Urbi owes
the Barclays unit $11.6 million, according to the complaint,
Bloomberg News relays.

Bloomberg News relates that Urbi had asked state Supreme Court
Justice Shirley Werner Kornreich in Manhattan to dismiss the suit
for lack of personal jurisdiction, saying it's based on a
transaction between two Mexican companies that's governed by
English law.  Justice Kornreich denied the request, saying that
the parties chose New York as the venue for legal disputes over
the agreement, Bloomberg News notes.

"When the parties actually engaged in meaningful negotiations over
where this lawsuit should be venued, they specifically picked this
court. . . . Ultimately, the parties' intent governs the court's
interpretation of their agreement," Justice Kornreich said,
Bloomberg News discloses.

Bloomberg News relays Urbi faces lawsuits from banks including
Credit Suisse Group AG and Deutsche Bank AG on defaulted loans and
missed payments.

Mexico's third-largest homebuilder by sales has seen its cash flow
plunge as the nation shifted housing policy to favor urban
apartment developments over single-family homes in outlying areas,
requiring greater initial investment, Bloomberg News says.

Bloomberg News recalls that Urbi, based in Mexicali, Mexico, said
May 6 it won't make an interest payment of MXN3.9 million
($320,039) on notes due in 2014.

The company's sales plunged 85 percent to MXN468 million in the
first quarter as it limited operations and hired Rothschild as a
financial adviser to consider a debt restructuring, Bloomberg News
notes.  Its cash and cash equivalents fell 95 percent in the first
quarter from the previous quarter, Bloomberg News adds.

Urbi Desarrollos Urbanos is a publicly traded, fully integrated
homebuilder engaged in the development, construction, marketing
and sale of affordable housing in Mexico.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 9, 2013, Moody's Investors Service downgraded Urbi's global
scale foreign currency senior unsecured debt rating to Ca from
Caa2.  The rating remains under review for downgrade.


=======
P E R U
=======


BANCO DE LA NACION: Fitch Affirms Viability Rating at 'bb+'
-----------------------------------------------------------
Fitch Ratings has affirmed Banco de la Nacion's (BN) IDR at 'BBB'.
The Rating Outlook is Stable.

KEY RATING DRIVERS

BN's IDRs, Support rating and Support Rating Floor (SRF) reflect
the support it would receive from its owner, the Republic of Peru,
should it be required. Besides BN's key role within the
government's operations, its status as an autonomous government
agency and an explicit provision in its inception law states that
the bank enjoys the full faith and credit of the Republic of Peru.
Peru's ability to provide such support is reflected in its
sovereign rating (rated 'BBB'/'BBB+' with a Stable Outlook by
Fitch).

BN's Viability Rating (VR) reflects its solid capital base, good
asset quality, ample reserves, sound profitability, and high
liquidity. Fitch's view on BN's viability rating is tempered by
the potential political influence on the bank's operations with
decisions that could result in the bank taking more risk. Although
unlikely at the present time, this scenario cannot be completely
ruled out in the medium and long term. Fitch also factored BN's
high exposure to the government on both sides of the balance
sheet, the dependence of operating revenues on government sources,
narrow product offering, and aging IT platform in its VR.

RATING SENSITIVITIES

The Rating Outlook on BN's IDRs is aligned with the Sovereign
rating of Peru. BN's IDRs and SRF would move in line with
sovereign ratings. As such, downgrade risk for BN's IDRs is
currently limited given Peru's economic prospects.

BN's viability rating could be pressured by dismal results, weaker
asset quality, and significantly lower capital levels. Another
potential ratings detrimien is if the government takes measures
that prompt the bank to take higher risks. Greater protection
against potential political influence and stability of the bank's
management and board of directors would be positive. However, it
is not likely given BN's role in the medium term. Upside potential
could also stem from an improvement in BN's IT platform that would
enable it to diversify its range of products and services and
improve its cost efficiency ratios.

PROFILE

BN's profitability is good. Based mainly on its ample margins, BN
benefits from a low cost deposit base and healthy asset quality
ratios. Its performance in 2012 and first-quarter 2013 (1Q'13) was
driven by loan growth, ample albeit narrowing margins, growing
non-interest revenues and low credit cost. Operating expenses
benefited in 2012 from a tax refund of PEN57.7 million and
extraordinary expenses in 2011. ROAA improved to 2.75% at March
31, 2013 (2.22% at Dec. 31, 2011) and ROAE reached a high 37.07%
due to the decline in BN's equity after the earnings distribution.

BN's asset quality ratios are healthy as most of its lending is to
the government and its agencies, to public servants and government
retirees. Past due loans accounted for a low 0.61% of the total
and reserve coverage was 526.51% at March 31, 2013.

Capitalization is sound, benefiting from the low-risk weight of
its assets (49.3% in cash and 22.8% in government securities). Its
capital adequacy ratios are sound, though they have gradually
declined due to the bank's expansion. At Dec. 31, 2012 BN's Fitch
core capital to risk-weighted assets ratio equalled a high 28.19%
and its regulatory capital ratio 19.24%. BN's steady profitability
should be sufficient to underpin capital and sustain growth.

BN is Peru's financial agent and largest government-owned
commercial bank. BN offers banking services to government agencies
and public servants and retirees and plays an important role in
the government's economic policies. This is especially true in
developing Peru's most remote areas where private sector banks are
not present.

Fitch has affirmed the following ratings for BN with a Stable
Outlook:

-- Long-term foreign currency IDR at 'BBB';
-- Short-term foreign currency IDR at 'F2';
-- Long-term local currency IDR at 'BBB+';
-- Short-term local currency IDR at 'F2';
-- Viability Rating at 'bb+';
-- Support rating at '2';
-- Support floor at 'BBB'.


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


* 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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