/raid1/www/Hosts/bankrupt/TCRLA_Public/130719.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
Friday, July 19, 2013, Vol. 14, No. 142
Headlines
A R G E N T I N A
YPF SA: Signs Shale-Oil Deal With Chevron
YPF SA: Deal with Chevron Credit Neutral to Ratings Says Fitch
* ARGENTINA: May Get IMF Backing in Debt Case
B R A Z I L
COMPANHIA SIDERURGICA: Fitch Cuts IDRs to 'BB+'; Outlook Negative
OGX PETROLEO: Watchdog Probes Firm After Insider Trading Complaint
C A Y M A N I S L A N D S
HAITONG INTERNATIONAL: Creditors' Proofs of Debt Due Aug. 13
SARIX FUND: Creditors' Proofs of Debt Due Aug. 13
SIMPAUG BASIC: Creditors' Proofs of Debt Due Aug. 13
TE JENKINS: Creditors' Proofs of Debt Due Aug. 15
TE JENKINS PORTFOLIO: Creditors' Proofs of Debt Due Aug. 15
THAI INVESTOR I: Creditors' Proofs of Debt Due Aug. 14
THAI INVESTOR II: Creditors' Proofs of Debt Due Aug. 14
THAI INVESTOR III: Creditors' Proofs of Debt Due Aug. 14
THAI INVESTOR IV: Creditors' Proofs of Debt Due Aug. 14
THAI INVESTOR V: Creditors' Proofs of Debt Due Aug. 14
THAI INVESTOR VI: Creditors' Proofs of Debt Due Aug. 14
THAI INVESTOR VII: Creditors' Proofs of Debt Due Aug. 14
THAI INVESTOR VIII: Creditors' Proofs of Debt Due Aug. 14
THAI INVESTOR IX: Creditors' Proofs of Debt Due Aug. 14
THAI INVESTOR X: Creditors' Proofs of Debt Due Aug. 14
E L S A L V A D O R
AES EL SALVADOR: Fitch Affirms 'BB' Issuer Default Ratings
BANCO AGRICOLA: Fitch Cuts LT Issuer Default Rating to 'BB+'
BANCO DAVIVIENDA: S&P Affirms 'BB-' ICR; Outlook Negative
P E R U
CORPORACION AZUCARERA: Fitch Affirms 'BB' Issuer Default Rating
P U E R T O R I C O
PUERTO RICO CABLE: S&P Assigns 'B' CCR; Outlook Stable
T R I N I D A D & T O B A G O
CL FIN'L: Clico Investment Fund Payout Set in August
- - - - -
=================
A R G E N T I N A
=================
YPF SA: Signs Shale-Oil Deal With Chevron
-----------------------------------------
Jamaica Gleaner reports that Argentina's state-controlled YPF SA
has persuaded Chevron Corp to sign a long-sought deal to invest
US$1.24 billion in developing the South American country's shale
oil deposits.
The joint venture adds up to US$1.5 billion overall, the first
major foreign oil investment in Argentina since President Cristina
Fernandez de Kirchner seized control of YPF SA from Spain's Grupo
Repsol last year, according to Jamaica Gleaner.
The report notes that YPF SA Chief Executive Officer Miguel
Galuccio and Chevron Chief Executive Officer John Watson presented
it to Fernandez, who issued two decrees this week, granting
special privileges to any oil company investing more than a
billion dollars in new shale ventures.
The report says that after five years, such companies will be able
to export up to 20 per cent of their crude and natural gas without
paying taxes, and also be exempt from the currency controls that
have scared away many other foreign investors.
The YPF-Chevron venture will start with a US$300 million pilot
hydraulic fracturing project involving more than 100 wells in an
area known as the 'Enrique Mosconi Cluster', part of the Vaca
Muerta (Dead Cow) deposit in Neuquen province, where YPF said 15
teams are already extracting more than 10,000 barrels a day, the
report discloses.
The report relays that in a later stage of the project, YPF
expects to develop more than 1,500 wells and by the year 2017
produce 50 million barrels of oil and three million cubic metres
of natural gas each day, making it the most productive strike in
Argentina, YPF SA said, the report adds.
About YPF SA
Headquartered in Buenos Aires, Argentina, YPF S.A. is an
integrated oil and gas company engaged in the exploration,
development and production of oil and gas, natural gas and
electricity-generation activities (upstream), the refining,
marketing, transportation and distribution of oil and a range of
petroleum products, petroleum derivatives, petrochemicals and
liquid petroleum gas (downstream). The company is a subsidiary
of Repsol YPF, S.A., a Spanish company engaged in oil exploration
and refining, which holds 99.04% of its shares. Its international
operations are conducted through its subsidiaries, YPF
International S.A. and YPF Holdings Inc.
* * *
As reported in the Troubled Company Reporter-Latin America on
Jan. 6, 2012, Dow Jones' DBR Small Cap reports that Argentina's
largest oil and gas producer, YPF SA, said it won't exercise an
option to lift its stake in the parent company of natural gas
distribution firm Metrogas SA after failing to reach an agreement
with creditors.
As of March 20, 2012, the company continues to carry Fitch
Rating's "B+" long-term foreign currency default rating and "BB"
long-term local currency issuer default rating.
YPF SA: Deal with Chevron Credit Neutral to Ratings Says Fitch
--------------------------------------------------------------
The recent agreement between YPF S.A. and Chevron Corporation is
credit neutral to YPF's ratings, according to Fitch Ratings. YPF's
current foreign and local currency ratings are 'B-', and its
national scale rating is 'AA(arg)'. The Rating Outlook is
Negative.
On July 16, 2013, YPF announced a Project Investment Agreement
with Chevron to develop unconventional hydrocarbon resources in
the province of Neuquen in an area that includes Loma La Lata
Norte and Loma Campana. Chevron is initially committed to invest
USD1240 million to drill more than 100 wells in one year. The
joint investment is estimated in USD1.5 billion.
During the initial phase, the agreement with Chevron is not
expected to pressure to YPF's cash flow as the majority of the
investment will be financed by Chevron. The project is expected to
benefit from the incentives included in the Decree 929/2013 that
was published on July 15, 2013. (Please see the comment
'Argentina: New Oil and Gas Sector Incentives Are Insufficient to
Attract Massive Investment' published today for additional
information). As a result, a condition for Chevron to make an
initial investment of USD300 million, is that the project is
granted a new concession over its specific area for a 35-year
period. The province of Nequen will be responsible for granting
such concession. During a second phase each party will invest 50%
each. Fitch will assess the impact on YPF of the second stage of
the investment in Neuquen when there is public information
available on the amount of the investment, capex program, the
financing resources and reserves and production profile.
YPF's international rating is rated at the same level as
Argentina's local currency, following the government's
expropriation of Repsol's 51% controlling stake in April 2012. The
government ownership generates uncertainty over the company's
future efficiency and profitability, as state-owned entities tend
to incorporate more social considerations into their business
strategy. YPF's ratings reflect the company's government ownership
and decreasing reserves and production volumes. YPF benefits from
a strong market position and its business integration.
As of December 2012, YPF had weak operating metrics reflected in
the company reporting 5.5 years of reserves, which is well below
Fitch's optimal level of 10 years. In 2012, YPF's one-year reserve
replacement (RRR) decreased to 85% from 113% in 2011 but,
positively, its production remained stable at approximately 485
thousand barrels of oil equivalent (boe) per day as of March 2013.
YPF's leverage is low at USD/boe 3.4 as of December 2012, although
it has grown from USD/boe 2.6 in 2011. Total debt has increased to
USD 3620 as of March 2013 from USD 1965 in 2011, but the company's
debt maturity profile has improved. Short-term debt has decreased
to 25% over total debt (USD 894 million) from 60% over total debt
(USD 1884 million in 2011), mitigating refinancing risk. As of
March 213, YPF's cash position was US$843 million.
* ARGENTINA: May Get IMF Backing in Debt Case
---------------------------------------------
Katia Porzecanski and Sandrine Rastello at Bloomberg News report
that the International Monetary Fund is considering supporting
Argentina in its request to the U.S. Supreme Court for a review of
a lower-court ruling in its legal battle over its defaulted debt,
according to two people familiar with the matter.
IMF Managing Director Christine Lagarde will ask the fund's
executive board to submit a friend-of-the-court brief in support
of Argentina's June 24 petition to the Supreme Court to take a
case involving holdout creditors from the nation's $95 billion
default in 2001, two people familiar with the request said,
according to Bloomberg News.
Bloomberg News notes that the South American nation claims a
federal appeals court in New York was wrong when it ruled in
October that investors in restructured Argentine debt can't be
paid unless holders of the nation's defaulted bonds, led by
billionaire Paul Singer's Elliott Management Corp. and its NML
Capital Ltd. unit, are also paid.
Bloomberg News relates that in asking the Supreme Court to take
the case, Argentina argued that the lower-court ruling "represents
an unprecedented intrusion into the activities of a foreign state
within its own territory that raises significant foreign relations
concerns for the United States."
'Restructuring Process'
Bloomberg News relays that the move by the Washington-based lender
would come two months after the fund's staff published a report
warning that the court's decision on Argentina, if upheld, "could
exacerbate collective action problems and risk undermining the
sovereign debt restructuring process" around the world.
"The Argentine decisions, if upheld, would likely give holdout
creditors greater leverage and make the debt restructuring process
more complicated," the report said, Bloomberg News discloses.
Bloomberg News notes that Argentina hasn't issued debt in capital
markets abroad since the default and speculation the nation would
opt to suspend payments on performing debt rather than pay
holdouts has pushed the price of its credit-default swaps to the
highest in the world.
Bloomberg News recalls that in February, Argentina became the
first nation censured by the IMF for not providing accurate data
on inflation and economic growth under a procedure that could end
in expulsion. The government says consumer prices rose 10.5
percent in June from a year earlier, less than half the 23.8
percent estimate from private economists, Bloomberg News notes.
Bloomberg News adds that Argentina has said that forcing it to pay
the defaulted bondholders immediately would expose it to $43
billion in additional claims it can't pay and trigger a new
default.
===========
B R A Z I L
===========
COMPANHIA SIDERURGICA: Fitch Cuts IDRs to 'BB+'; Outlook Negative
-----------------------------------------------------------------
Fitch Ratings has downgraded the long-term foreign and local
currency Issuer Default Ratings (IDRs) of Companhia Siderurgica
Nacional (CSN) to 'BB+' from 'BBB-' and national scale rating to
'AA(bra)' from 'AA+(bra)'. The Rating Outlook has been revised to
Negative from Stable.
KEY RATING DRIVERS
Lower Profitability; Higher Leverage
The downgrade of CSN's ratings is driven by the fundamental and
prolonged change in the competitiveness of Brazilian steel
alongside a decline in seaborne iron ore prices. Combined, these
factors have resulted in lower profitability and correspondingly
higher leverage ratios at CSN. While CSN's operating environment
has weakened, the company has not taken corresponding measures to
adjust its capital structure sufficiently.
The Negative Outlook reflects the possibility of the company's
adjusted net debt to EBITDA ratio remaining above 3.5x over the
next few years due to CSN's on-going investment program. Should
this net leverage ratio not decrease to below 3.5x during the next
12 to 24 months, a further downgrade could follow. If CSN's net
debt to EBITDA ratio falls below 3.5x on a sustained basis over
the next four to eight quarters, the Outlook could be revised to
Stable.
CSN has indicated that capex will be lower in 2013 at around
BRL2.8 billion compared to the BRL3.2 billion previously
announced. This change signals that steps are being taken by CSN
to readjust to more challenging trading conditions. Even with this
reduction in investments, leverage ratios are expected to remain
around current levels by year-end 2013.
Current Leverage Ratios Not Considered a Through-the-Cycle Peak
Fitch's base case indicates an adjusted net debt to LTM EBITDA
ratio of between 3.5x and 4.0x at CSN over the next few years.
CSN's adjusted net debt to LTM EBITDA ratio was 3.8x as of
March 31, 2013 compared to 2.4x for the same period in 2012.
Fitch's Base case indicates a transition of the company's EBITDA
margins to the 20% - 25% range from high levels historically of
around 40% due to an environment of lower pricing and higher
operating costs. The weaker profitability will impact CSN's free
cash flow (FCF) flow generation, which has been negative since
2007 because of the expansion of its Casa de Pedra mine and other
related projects.
Providing comfort to the negative FCF historically has been the
company's extremely large cash position, currently over BRL11
billion, as per IFRS 10/11 excluding cash held at subsidiaries,
compared to short term debt of BRL2.7 billion. As the company's
large capex plan continues, and profitability remains at lower
levels than those seen historically, this large cash position at
CSN is expected to decline by almost half by 2016 under Fitch's
base case scenario.
Lower Profitability Expected Going Forward
A perfect storm of lower prices for steel in Brazil and iron ore
prices internationally combined with operating cost inflation has
eroded CSN's EBITDA margin. Margins in the range of 20% - 25% are
expected to remain until an improvement takes place in Brazil's
high cost operating environment. In Fitch's model it uses iron ore
prices of around USD110 to USD120 per metric ton over the next
three to four years.
CSN has historically generated high EBITDA margins of around 40%
due to its control over the steel production process, substantial
and growing iron ore operations, and high-value-added steel
products. Going forward, EBITDA margins are expected to be lower
at around half of historical levels but still considerably higher
than peers such as Gerdau S.A. (Gerdau, IDR rated 'BBB-' with a
Stable Outlook by Fitch) and Usinas Siderurgicas de Minas Gerais
S.A. (Usiminas, IDR 'BB+'; Negative Outlook) which reported LTM
EBITDA margins in 1Q'13 of 9% and 9.8%, respectively.
Large Capex Plan Currently Unchanged Amidst Lower Profitability
While CSN has curtailed non-essential capex for 2013 by around
BRL400 million, there has been no indication of a substantial
scale down with regards to the company's sizeable investment plan
over the next four years. These investments, should they proceed
as planned, will total over BRL20 billion from 2014 to 2017, or
around BRL5 billion a year, on average, including maintenance
capex. Investments will be more heavily weighted in 2016 and 2017.
CSN's strategic plan involves Greenfield investments to expand
iron ore production by an additional 20 million metric tons per
year (mtpy) by 2019, building new cement plants by 2017, and a
long steel plant in 2014.
CSN's Greenfield investments will take place concurrently with
Brownfield investments to expand its Tecar port capacity from 45
mtpy in 2014 to 84 mtpy in 2019, expand its Transnordestina
railway network by 1,728 km, and increase output at existing
mining operations for Namisa to produce 13 mtpy and Casa de Pedra
to produce 50 mtpy of iron ore per year.
Should the company proceed as planned with these investments,
Fitch's base case indicates consistent negative FCF generation of
around BRL1.5 billion on average annually. CSN's FFO adjusted net
leverage increased to over 3.2x in 2012 from 2.0x in 2011, and
looks set to increase further to around 4.0x over the next few
years. This high level of FFO adjusted net leverage on a sustained
basis may lead to a further downgrade of ratings.
RATING SENSITIVITIES
The Negative Outlook reflects the likelihood of the company's
adjusted net debt to EBITDA ratio remaining above 3.5x over the
next three years due to CSN's on-going investment program. Should
net debt to EBITDA not decrease to below 3.5x during the next 12
to 24 months, a further downgrade could follow.
If CSN's net debt to EBITDA ratio falls below 3.5x on a sustained
basis over the next four to eight quarters, then the outlook could
be changed to Stable from Negative. For an upgrade to take place
the company must demonstrate a commitment to returning to a
capital structure with leverage and debt coverage ratios similar
to those it has exhibited historically, with net debt to EBITDA
below 2.0x, FFO adjusted net debt around 2.0x, alongside positive
FCF generation on a sustained basis.
Fitch downgrades the ratings of CSN and its wholly-owned debt
issuing subsidiaries as follows:
-- CSN Long-Term Foreign Currency IDR to 'BB+' from 'BBB-';
-- CSN Long-Term Local Currency IDR to 'BB+' from 'BBB-';
-- CSN National Long-Term rating to 'AA(bra)' from 'AA+(bra)';
-- CSN Islands VIII Long-Term IDR to 'BB+' from 'BBB-';
-- CSN Islands VIII senior unsecured Long-Term rating to 'BB+'
from 'BBB-';
-- CSN Islands IX Long-Term IDR to 'BB+' from 'BBB-';
-- CSN Islands IX senior unsecured Long-Term rating to 'BB+' from
'BBB-';
-- CSN Islands XI Long-Term IDR to 'BB+' from 'BBB-';
-- CSN Islands XI senior unsecured Long-Term rating to 'BB+' from
'BBB-';
-- CSN Islands XII Long-Term IDR to 'BB+' from 'BBB-';
-- CSN Islands XII senior unsecured Long-Term rating to 'BB+' from
'BBB-';
-- CSN Resources S.A. Long-Term IDR to 'BB+' from 'BBB-';
-- CSN Resources S.A. Senior unsecured Euro Note Long-Term rating
to 'BB+' from 'BBB-'.
The Rating Outlook is Negative.
OGX PETROLEO: Watchdog Probes Firm After Insider Trading Complaint
------------------------------------------------------------------
Felipe Frisch and Juan Pablo Spinetto at Bloomberg News report
that Brazil's securities regulator started an investigation into
billionaire Eike Batista's OGX Petroleo & Gas Participacoes SA
after a minority investor lodged a complaint over alleged insider
trading.
The Brazilian Securities and Exchange Commission, known as CVM,
opened the review after a request by OGX individual investor
Rafael Ferri, according to Bloomberg News. The complaint relates
to Batista's sale of 126.7 million OGX shares between May and June
before the company scrapped projects and warned it may stop
pumping crude next year, Mr. Ferri said in an e-mailed statement
obtained by Bloomberg News.
Bloomberg News notes that Batista's six publicly traded ventures
have lost about $10 billion in value this year, led by an 88
percent drop in OGX. The shares slump a record 29 percent on July
1 when the company said it may shut its only crude oil producing
wells next year after output reached a fraction of original
targets, Bloomberg News relays.
Bloomberg News recalls that Batista sold 56.2 million shares of
OGX in June after divesting 70.5 million shares in late May as he
seeks to raise cash to pay back debts.
Based in Rio de Janeiro, Brazil, OGX is an independent exploration
and production company with operations in Latin America.
* * *
As reported in the Troubled Company Reporter-Latin America on
July 17, 2013, Moody's Investors Service downgraded OGX Petroleo e
Gas Participaaoes S.A.'s Corporate Family Rating to Ca from Caa2
and OGX Austria GmbH's senior unsecured notes ratings to Ca from
Caa2. The rating outlook remains negative.
==========================
C A Y M A N I S L A N D S
==========================
HAITONG INTERNATIONAL: Creditors' Proofs of Debt Due Aug. 13
------------------------------------------------------------
The creditors of Haitong International Fund Series SPC 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 11, 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
SARIX FUND: Creditors' Proofs of Debt Due Aug. 13
-------------------------------------------------
The creditors of Sarix Fund Limited 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 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
SIMPAUG BASIC: Creditors' Proofs of Debt Due Aug. 13
----------------------------------------------------
The creditors of Simpaug Basic Resources Overseas Partners 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
TE JENKINS: Creditors' Proofs of Debt Due Aug. 15
-------------------------------------------------
The creditors of Te Jenkins Investors, 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 28, 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
TE JENKINS PORTFOLIO: Creditors' Proofs of Debt Due Aug. 15
-----------------------------------------------------------
The creditors of Te Jenkins Portfolio, 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 28, 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
THAI INVESTOR I: Creditors' Proofs of Debt Due Aug. 14
------------------------------------------------------
The creditors of Thai Investor I Inc are required to file their
proofs of debt by Aug. 14, 2013, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on June 24, 2013.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 31237 Grand Cayman KY1-1205
c/o Declan Magennis
Telephone: (345) 947 4700
THAI INVESTOR II: Creditors' Proofs of Debt Due Aug. 14
-------------------------------------------------------
The creditors of Thai Investor II Inc. are required to file their
proofs of debt by Aug. 14, 2013, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on June 24, 2013.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 31237 Grand Cayman KY1-1205
c/o Declan Magennis
Telephone: (345) 947 4700
THAI INVESTOR III: Creditors' Proofs of Debt Due Aug. 14
--------------------------------------------------------
The creditors of Thai Investor III Inc. are required to file their
proofs of debt by Aug. 14, 2013, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on June 24, 2013.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 31237 Grand Cayman KY1-1205
c/o Declan Magennis
Telephone: (345) 947 4700
THAI INVESTOR IV: Creditors' Proofs of Debt Due Aug. 14
-------------------------------------------------------
The creditors of Thai Investor IV Inc. are required to file their
proofs of debt by Aug. 14, 2013, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on June 24, 2013.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 31237 Grand Cayman KY1-1205
c/o Declan Magennis
Telephone: (345) 947 4700
THAI INVESTOR V: Creditors' Proofs of Debt Due Aug. 14
------------------------------------------------------
The creditors of Thai Investor V Inc. are required to file their
proofs of debt by Aug. 14, 2013, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on June 24, 2013.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 31237 Grand Cayman KY1-1205
c/o Declan Magennis
Telephone: (345) 947 4700
THAI INVESTOR VI: Creditors' Proofs of Debt Due Aug. 14
-------------------------------------------------------
The creditors of Thai Investor VI Inc. are required to file their
proofs of debt by Aug. 14, 2013, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on June 24, 2013.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 31237 Grand Cayman KY1-1205
c/o Declan Magennis
Telephone: (345) 947 4700
THAI INVESTOR VII: Creditors' Proofs of Debt Due Aug. 14
--------------------------------------------------------
The creditors of Thai Investor VII Inc. are required to file their
proofs of debt by Aug. 14, 2013, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on June 24, 2013.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 31237 Grand Cayman KY1-1205
c/o Declan Magennis
Telephone: (345) 947 4700
THAI INVESTOR VIII: Creditors' Proofs of Debt Due Aug. 14
---------------------------------------------------------
The creditors of Thai Investor VIII Inc. are required to file
their proofs of debt by Aug. 14, 2013, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on June 24, 2013.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 31237 Grand Cayman KY1-1205
c/o Declan Magennis
Telephone: (345) 947 4700
THAI INVESTOR IX: Creditors' Proofs of Debt Due Aug. 14
-------------------------------------------------------
The creditors of Thai Investor IX Inc. are required to file their
proofs of debt by Aug. 14, 2013, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on June 24, 2013.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 31237 Grand Cayman KY1-1205
c/o Declan Magennis
Telephone: (345) 947 4700
THAI INVESTOR X: Creditors' Proofs of Debt Due Aug. 14
------------------------------------------------------
The creditors of Thai Investor X Inc. are required to file their
proofs of debt by Aug. 14, 2013, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on June 24, 2013.
The company's liquidator is:
Krys Global VL Services Limited
KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 31237 Grand Cayman KY1-1205
c/o Declan Magennis
Telephone: (345) 947 4700
======================
E L S A L V A D O R
======================
AES EL SALVADOR: Fitch Affirms 'BB' Issuer Default Ratings
----------------------------------------------------------
Fitch Ratings has affirmed AES El Salvador Trust II's foreign and
local currency Issuer Default Ratings (IDRs) at 'BB'. The rating
action applies to the company's USD310 million bond issuance due
March 28, 2023. The Rating Outlook has been revised to Negative
from Stable.
The Negative Outlook is based on Fitch's recent downgrade of El
Salvador's sovereign rating to 'BB-' from 'BB' with a Negative
Outlook. A significant portion of AES El Salvador's cash flow
generation comes from the government in the form of subsidies,
which exposes the company to El Salvador's creditworthiness and
payment ability.
AES El Salvador's Negative Outlook also considers the company's
exposure to the sustained weakening macroeconomic conditions in El
Salvador, which could affect electricity demand, collections and
non-technical electric losses.
KEY RATING DRIVERS
Subsidies are relevant to AES El Salvador as 62% of its total
customers as of December 2012 have a monthly energy consumption of
99KWh or less, which are subject to subsidies from the Salvadorian
government. Also, the government implemented an extraordinary
subsidy for users with consumption below 200 kilowatts (KWh). AES
El Salvador received subsidies of approximately USD135.2 million
in 2012, which have been timely paid.
AES El Salvador's operations are relatively efficient compared
with other distribution companies in the region. The group, on a
consolidated basis, has reported losses of 9.36% as of
December 2012. This bodes well for the company's credit quality as
it limits its exposure to costs that are not recognized through
the tariffs.
The company's credit profile is supported by its stable and
predictable cash flow generation and strengthening credit metrics
as result of higher EBITDA levels as outcome of the tariff reset
for the 2013-2017 period. The tariff reset was determined as per
the new methodology that considers real costs of the companies
based on El Salvador distribution grid instead of an optimized
company model as it was considered in the past methodology.
The recently implemented tariff reset is expected to increase the
company's cash flow generation over the next four years, starting
in 2013, by approximately 23% from previous years. EBITDA is
expected to increase to approximately USD85 million by the end of
2013, and to average between USD90-95 million going forward.
Fitch expects AES El Salvador leverage ratio to strengthen and to
range between 3.5x and 4-0x as result of the new tariff regime.
AES El Salvador's interest coverage will improve to 4.0x on
average, from 2.5x-3.0x in the 2008-2012 period due to the higher
EBITDA generation.
AES El Salvador's liquidity is supported by its cash on hand,
which as of year-end 2012 was approximately USD20.6 million, and a
USD63.5 million short-term bank credit facility to buy electricity
from generators. Liquidity could be affected in case of higher
energy prices for final users that could lead to higher ageing
account receivables. Should distribution companies be forced to
issue additional debt to fund their working capital requirements,
while they continue distributing dividends, their credit quality
could deteriorate.
RATINGS SENSITIVITY
-- AES El Salvador's ratings could be negatively affected by any
combination of the following factors: further sovereign
downgrades reflecting deterioration of macroeconomic conditions
in El Salvador, that in turn could affect subsidies payments
from the government; deterioration of credit metrics; shortages
of electricity supply resulting in lower consumption and lower
cash flow generation; further political or regulatory
intervention that negatively affects the company's financial
performance; and
-- AES El Salvador's ratings could be positively affected by a
sustainable leverage reduction; regulatory stability; and
improving macroeconomic conditions in El Salvador.
BANCO AGRICOLA: Fitch Cuts LT Issuer Default Rating to 'BB+'
------------------------------------------------------------
Fitch Ratings has downgraded Banco Agricola S.A.'s ratings as
follows:
-- Viability Rating (VR) to 'bb+' from 'bbb-';
-- Long-Term Issuer Default Rating (IDR) to 'BB+' from 'BBB-'.
The IDR's Outlook remains Negative.
In addition, Fitch has downgraded Banco Davivienda Salvadoreno
S.A.'s (Davivienda) VR to 'bb-' from 'bb' and revised the bank's
Rating Outlook to Negative from Stable.
These rating actions reflect the recent downgrade of El Salvador's
Long-Term Ratings and Country Ceiling, and do not reflect changes
in the banks' performance. A full list of Agricola's and
Davivienda's ratings follows at the end of this press release.
AGRICOLA'S KEY RATING DRIVERS - IDRs, VR AND NATIONAL RATINGS
Agricola's IDRs and VR downgrades are a consequence of Fitch's
downgrade of El Salvador's IDR to 'BB-' from 'BB' and Country
Ceiling to 'BB+' from 'BBB-'. Agricola's IDRs are currently
constrained by the Country Ceiling and, together with its VR,
remains two notches above El Salvador's Sovereign Rating.
Agricola's above-sovereign VR reflects its strong local franchise,
risk appetite and sound capitalization, which have proven to be
key elements to perform well under stress circumstances. The
agency believes that there is a close link between bank and
sovereign credit risk (and therefore ratings) and it is
exceptional for banks to be rated above their domestic sovereign.
Agricola's national ratings were affirmed as its relative strength
in the local market remains unchanged. Inversiones Financieras
Banco Agricola (IFBA)'s national ratings mirror Agricola's
national ratings as the last represents around 99% of total assets
and earnings.
Agricola's IDR is driven by its VR, which reflects its proven
resilience to downturns in economic cycles and its dominant
position in the local market. The bank's ratings also factor in El
Salvador's challenging economic conditions, which may still have
some impact on asset quality and growth prospects. It is important
to point out that in the absence of a strong stand alone
performance, Agricola's IDRs would remain at the same level given
the support it would receive from its parent, Bancolombia (rated
'BBB' by Fitch), should it be required. This is reflected on
Agricola's support rating of '3', indicating a moderate
probability of support.
DAVIVIENDA'S KEY RATING DRIVERS - IDRs, VR AND NATIONAL RATINGS
Davivienda's Long-Term Rating Outlook has been revised to Negative
from Stable, indicating that its IDR would be adjusted downwards
if further downgrades of El Salvador's Sovereign Ratings result in
a Country Ceiling adjustment. Davivienda's VR has been downgraded
to 'bb-' from 'bb', aligned with the sovereign rating. The recent
downgrade of El Salvador's sovereign rating denotes a more
challenging operating environment and given that Davivienda has no
track record of outperforming the market, its VR is constrained by
the sovereign. Davivienda's national ratings were affirmed as well
as those of its local holding Inversiones Financieras Davivienda,
S.A. (IFDavivienda) as its relative strength in the local market
remains unchanged.
Davivienda's IDR and National Ratings reflect the potential
support it would receive from its holding company, the Colombian
Banco Davivienda, S.A. (rated 'BBB-' with a Stable Outlook),
should it be required. Fitch considers Davivienda, along with the
parent's Central American subsidiaries, as Strategically Important
(using Fitch's Criteria 'Rating FI Subsidiaries and Holding
Companies') in fostering the group's expansion and diversification
in Central America. Davivienda's support rating of '3' indicates a
moderate probability of support from its parent.
Davivienda's VR is aligned with the sovereign rating. The rating
reflects the bank's domestic franchise and market share, while
also factoring in its slow asset growth, modest profitability and
lower asset quality. Fitch believes that economic conditions have
deteriorated in such way that they can affect the bank's
performance.
AGRICOLA'S RATING SENSITIVITIES - IDRs, VR AND NATIONAL RATINGS
Agricola's Negative Outlook reflects that an eventual downgrade of
El Salvador's sovereign rating could result in a downgrade of the
country ceiling, which would, in turn, lead to a downgrade of
Agricola's VR and IDR. On the other hand, if the sovereign ratings
are eventually affirmed at 'BB-' and the Outlook is revised to
Stable from Negative, it is highly likely that Agricola's IDR and
Outlook would be revised accordingly. Agricola's national ratings
would not be affected should El Salvador's sovereign and country
ceiling be downgraded.
DAVIVIENDA'S RATING SENSITIVITIES - IDRs, VR AND NATIONAL RATINGS
Further downgrades in El Salvador's country ceiling will also
result in a reduction in Davivienda's IDR and VR, as reflected by
the bank's Negative Outlook. Changes in Davivienda's national and
international IDRs could also respond to deviations in its parent
capacity and/or propensity to support it.
Davivienda's VR has limited upside potential. The VR could be
pressured downward by further changes in El Salvador's sovereign
ratings or by an unexpected material deterioration in its capital
ratios and/or its franchise and competitive position.
Fitch has taken the following rating actions:
Banco Agricola S.A.:
-- Long-term IDR downgraded to 'BB+' from 'BBB-'; Outlook
Negative;
-- VR downgraded to 'bb+' from 'bbb-';
-- Short-term IDR downgraded to 'B' from 'F3';
-- Support affirmed at '3';
-- Long-term National Rating affirmed at 'AAA(slv)'; Outlook
Stable;
-- Short-term National Rating affirmed at 'F1+(slv)';
-- Senior Unsecured Debt Long-term Rating affirmed at 'AAA(slv)';
-- Senior Secured Debt Long-term Rating affirmed at 'AAA(slv)'.
Inversiones Financieras Banco Agricola S.A.
-- Long-term National Rating affirmed at 'AAA(slv)'; Outlook
Stable;
-- Short-term National Rating affirmed at 'F1+(slv)'.
Banco Davivienda Salvadoreno, S.A.:
-- Long-term IDR affirmed at BB+'; Outlook revised to Negative
from Stable.
-- Short-term IDR affirmed at 'B';
-- VR downgraded to 'bb-' from 'bb';
-- Support affirmed at '3';
-- Long-term National Rating affirmed at 'AA+(slv)'; Outlook
Stable;
-- Short-term National Rating affirmed at 'F1+(slv)';
-- Senior Unsecured Debt Long-term Rating affirmed at 'AA+(slv)';
-- Senior Secured Debt Long-term Rating affirmed at 'AAA(slv)';
-- Senior Unsecured Debt Short-term Rating affirmed at 'F1+(slv)';
-- Senior Secured Debt Short-term Rating affirmed at 'F1+(slv)'.
Inversiones Financieras Davivienda S.A.:
-- Long-term National Rating affirmed at 'AA+(slv)'; Outlook
Stable;
-- Short-term National Rating affirmed at 'F1+(slv)'.
BANCO DAVIVIENDA: S&P Affirms 'BB-' ICR; Outlook Negative
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB-' long-term
and 'B' short-term issuer credit ratings (ICR) on Banco Davivienda
Salvadoreno S.A. The outlook is negative.
The ratings on Banco Davivienda Salvadoreno reflect S&P's view of
its "adequate" business position, "adequate" capital and earnings,
"adequate" risk position, and its "average" funding and "adequate"
liquidity (as S&P's criteria define these terms). The bank's
stand-alone credit profile (SACP) is 'bb'.
"Our 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'. We consider economic risks for
Salvadorian banks to be relatively high by global comparison and
we do not expect significant improvements in the near term. El
Salvador has had poor economic growth in the last 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. We view industry risks as slightly lower
as a result of perceived strengthening in institutional framework.
Our assessment reflects the financial sector's resilience to the
2009 economic 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," S&P said.
Banco Davivienda Salvadore¤o's business position remains
"adequate." "Despite El Salvador's poor economic performance in
recent years, the bank has maintained adequate business stability,
reflected in its stable market position with modest profitability
levels," said Standard & Poor's credit analyst Alfredo Calvo. As
of March 2013, Banco Davivienda Salvadoreno's total loans stood at
$1.3 billion--representing more than 70% of its total assets--
reaching a market share of 14% and representing the third-largest
bank in El Salvador. In the past, this bank was highly oriented
toward corporate loans but it has been expanding into the consumer
segment, including mortgages. Therefore, Banco Davivienda
Salvadoreno's business position is now supported by an adequate
diversification of business activities. As of March 2013, the
bank's loan portfolio was composed of commercial loans (46%),
consumer loans (37%), and mortgages (17%); S&P do not expect
significant changes in its composition.
========
P E R U
========
CORPORACION AZUCARERA: Fitch Affirms 'BB' Issuer Default Rating
---------------------------------------------------------------
Fitch Ratings has affirmed the following ratings of Corporacion
Azucarera Del Peru S.A.'s (Coazucar):
-- Local and Foreign Currency Issuer Default Rating (IDR) at 'BB';
-- USD320 million senior unsecured notes at 'BB'.
The Rating Outlook is Stable.
KEY RATING DRIVERS
The ratings reflect Coazucar's strong business position as the
largest sugar producer in Peru. The company has a low cost
structure and high operating margins due the proximity of its
operations to the sugar cane fields, its low dependence on third
party cane producers, and some of the world's highest sugar cane
yields per hectare as a result of its favorable geographic
location that allows for a continued growing period. The ratings
also benefit from Coazucar's adequate liquidity, strong capital
structure and moderate leverage ratio with an adjusted debt to
EBITDA ratio of 2.6x as of March 31, 2013, which is just above the
company's long-term target of 2.5x.
The ratings also incorporate Coazucar's product concentration in
sugar, which currently accounts for 85% of the company's revenue.
The volatility of earnings typical for a commodity based business,
the company's exposure to currency exchange fluctuations, and
event risk associated with the natural phenomenon El Nino also
constrain the ratings. The ratings reflect Coazucar's acquisitive
nature, although this risk is mitigated to a degree by its
successful track record of integrating and improving past
acquisitions.
Deteriorating Operating Performance
Coazucar's operating performance in 2012 and the first quarter of
2013 was affected by the decline in sugar prices. The steep
decline in international sugar price led to increased imports and
competition in Peru, Coazucar's main market. As a result, sales
volumes and prices in Peru also declined. As of the LTM ended
March 31, 2013, Coazucar's EBITDA declined to PEN422 million, from
PEN501 million in 2012 and PEN578 in 2011. EBITDA Margin
deteriorated at a similar pace to 31.3% during the LTM from 34.3%
in 2012 and 44.3% in 2011. In addition to weaker prices and
volumes, the addition of the lower margin business in Ecuador
pressured margins. Fitch expects that 2013 will be a challenging
year for Coazucar with additional pressure on cash flow.
Strong Liquidity and Positive FCF
Coazucar's ratings are supported by its adequate liquidity. As of
March 31, 2013, the company had PEN260 million in cash which
covered adjusted short term debt of PEN 128 million (USD 49
million) by more than 2x. Coazucar's amortization schedule is
manageable, as most of its debt is related to the senior unsecured
bond that matures in 2022. Fitch expects that despite the
deterioration of operating performance the company's free cash
flow generation should improve and turn positive in 2013 as the
company scales back on investments. In 2012, Coazucar's free cash
flow was negative PEN 190 million due to PEN207 million of
investments. Key expenditures related to the acquisition of land
for the Olmos project. In 2013, Fitch expects the company to lower
capex related to this project to preserve cash during the more
difficult pricing environment. Additional investment related to
this projected are expected to total more than PEN 500 million and
to be made during the next two to three years.
Improving Net Leverage
As of March 31, 2013, Coazucar's total adjusted debt was PEN1.3
billion. This level of debt in relation to PEN422 million of
EBITDA resulted in a total leverage ratio of 3.1x during the LTM,
which is higher than the company's target of 2.5x. Fitch expects
that this ratio will deteriorate further by the end of 2013 due to
weak operating conditions. Due to positive cash flow, the
company's net adjusted debt to EBITDA ratio is expected to improve
from its current level of 2.4x by the end of 2013.
RATING SENSITIVITIES
A negative rating action could occur if Fitch's expectations of
positive operational results fail to materialize; if leverage
increased and remained at more than 3.5x on a consistent basis, as
a result of a large debt-financed acquisition or asset purchase;
or as a result of operational deterioration. A positive rating
action could be triggered by a significant and sustained leverage
decrease to about 1.0x in the midcycle.
=====================
P U E R T O R I C O
=====================
PUERTO RICO CABLE: S&P Assigns 'B' CCR; Outlook Stable
------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' corporate
credit rating to Puerto Rico-based cable systems operator Puerto
Rico Cable Acquisition Co. Inc. (d/b/a Choice Cable TV). The
rating outlook is stable.
At the same time, S&P assigned its 'B' issue-level rating and '3'
recovery rating to the company's proposed $170 million first-lien
credit facilities, consisting of a $15 million revolving credit
facility due 2018 and a $155 million term loan B due 2018. The
'3' recovery rating reflects S&P's expectation for meaningful (50%
to 70%) recovery for lenders in the event of a payment default.
S&P expects the company to use proceeds to refinance
$101.3 million in existing debt, and pay a $55 million
distribution to shareholders.
"Standard & Poor's Rating Services' rating on Choice Cable reflect
its 'highly leveraged' financial risk profile, with pro forma debt
to EBITDA of about 4.5x, although our rating incorporates the
expectation that the company could push leverage above 5x for
future dividend recapitalizations," said Standard & Poor's credit
analyst Michael Altberg. "In addition, the rating incorporates
our view of its "fair" business risk profile, including exposure
to a stagnant economy in Puerto Rico, lagging market penetration
rates versus U.S. peers, competition from satellite direct-to-home
(DTH) providers, and significant pay-TV piracy in its markets.
These factors are tempered by the company's position as an
incumbent cable system operator, good revenue visibility from its
subscription-based business, limited competition for high-speed
data (HSD), and healthy EBITDA margins relative to those of its
peers".
Choice Cable is the incumbent cable systems operator serving 31
regions in southern and western Puerto Rico, which is generally
more rural than markets served by Liberty Cablevision of Puerto
Rico LLC in the north. The company is owned approximately 83% by
financial sponsors Spectrum Equity and HM Capital, and about 17%
by Patriot Management. As of May 31, 2013, Choice had about
55,391 basic subscribers and video penetration in the midteens
percent area, well below U.S. cable operators in the low-40% area.
This is primarily due to the significant number of Puerto Rican
households that do not subscribe to a multichannel video
programming distributor (MVPD) service, which S&P estimates is
around 44%. In terms of video, the company also faces competition
from DTH operators, DISH Network Corp. and DIRECTV, which combined
have about a 40% market share. However, excluding pirated
signals, S&P believes the overall paid DTH market share is more in
line with that of the mainland U.S.
Claro (Puerto Rico Telephone), a wireline provider of data and
telephony services in Puerto Rico, also operates a DTH platform
that has limited market share. Claro has announced plans to
launch a competing IPTV product in 37 regions, though details of
the roll-out schedule are unclear. S&P believes this could
represent a longer-term threat in terms of a competitive triple-
play offering, but view Choice as having superior HSD offerings in
its markets. Choice has a stronger competitive advantage in
offering HSD to its approximately 88,000 subscribers through its
DOCSIS 3.0 infrastructure. Competition in HSD is primarily
limited to Claro's DSL (digital subscriber line) offering, which
is at lower speeds and overlaps Choice in slightly more than half
of its footprint.
"The stable rating outlook reflects our expectation that operating
performance will remain relatively steady over the next 12 months,
and that the company will generate positive FOCF that enables some
potential debt repayment. Still, a rating upgrade is constrained
by financial policy considerations and would entail our
expectation of leverage remaining below 5x on a sustained basis,
regardless of potential shareholder distributions. An upgrade
scenario would also require continued improvement in the Puerto
Rican economy, stable EBITDA margins, and relatively steady market
penetration rates for Choice's product offerings, especially with
potential increasing competition from Claro. Conversely, a rating
downgrade, which we view as unlikely over the intermediate term,
could result if leverage exceeded 7x for a sustained period. We
believe deteriorating operating performance amid weakening
economic conditions, coupled with a leveraging event such as a
dividend recapitalization, would be the most likely reasons for
such a scenario," S&P said.
===============================
T R I N I D A D & T O B A G O
===============================
CL FIN'L: Clico Investment Fund Payout Set in August
----------------------------------------------------
Carla Bridglal at Trinidad Express reports that CLICO Investment
Fund unit holders will receive their second semi-annual dividend
payment on August 21.
The Trinidad and Tobago Stock Exchange (TTSE) issued a release
with the interim dividend timetable for the CIF, according to
Trinidad Express.
July 25 is the ex-dividend date; July 29 is the record date; and
August 21 is the payment date.
The dividend payment is to be $0.32 per unit.
The first payment was on February 21 and was $0.56 per unit. The
total dividend payout thus far will be $0.88, Trinidad Express
notes.
The report relates that the ex-dividend date is the first day
following the declaration of a dividend, on which the buyer of the
stock is not entitled to receive the next dividend payment (that
is, the previous owner of the stock still gets to benefit from the
dividend payout. The record date is usually a few days after,
allowing the transfer process to settle and be properly recorded,
and a list of entitled shareholders is made who will receive
dividend benefits, Trinidad Express says.
"Any unit holder who sells his/her units on or before July 24 will
not be entitled to be paid this final dividend. It is important
to note that this payment, when added to the interim dividend of
$0.56 paid in February, will bring the total dividends paid for
the year to $0.88 and represents a return on investment or yield
of 3.52 per cent to its conversion price of $25.00 and 3.91 per
cent to its market price of $22.50. It is also noteworthy that at
$22.50, the CIF is still trading at a significant discount of
$2.50 or ten per cent to its conversion price and $2.92 or 11.48
percent to its net asset value (NAV) of $25.42," chairman of
Colonial Life Insurance Company (CLICO) Policyholders Group Peter
Permell said in a release July 16, Trinidad Express discloses.
Trinidad Express adds that the CIF debuted on January 7 with 204
million units listed at a price of $25 per unit, and closed the
day with 300 units being sold at a market price of $24.90. July
16, it closed the trading day at $22.50.
About CL Financial
CL Financial Group Limited is a privately held conglomerate in
Trinidad and Tobago. Founded as an insurance company by Cyril
Duprey, Colonial Life Insurance Company was expanded into a
diversified company by his nephew, Lawrence Duprey. CL Financial
is now one of the largest local conglomerates in the region,
encompassing over 65 companies in 32 countries worldwide with
total assets standing at roughly US$100 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
August 10, 2009, A.M. Best Co. downgraded the financial strength
rating to C (Weak) from B (Fair) and issuer credit rating to
"ccc" from "bb" of Colonial Life Insurance Company (Trinidad)
Limited (CLICO) (Trinidad & Tobago). The ratings remain under
review with negative implications. CLICO is an insurance member
company of CL Financial Limited (CL Financial), a diversified
holding company based in Trinidad & Tobago.
According to a TCR-LA report on Feb. 20, 2009, citing Trinidad
and Tobago Express, Tobago President George Maxwell Richards
signed bailout bills for CL Financial, giving the government the
authority to control the company's unit, Colonial Life Insurance
Company, and giving the central bank extensive powers to treat
with CL Financial's collapse and the consequent systemic crisis.
***********
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 * * *