/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130807.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Wednesday, August 7, 2013, Vol. 14, No. 155 Headlines B R A Z I L BANCO RURAL: S&P Lowers Issuer Credit Rating to 'D' C A Y M A N I S L A N D S ALLFIVE LIMITED: Members' Final Meeting Set for Aug. 13 ARBROK FUND: Placed Under Voluntary Wind-Up BROOKSTONE INVESTMENTS: Members' Final Meeting Set for Aug. 13 CHEYNE ABS: Creditors' Proofs of Debt Due Aug. 28 CHIA IAM: Creditors' Proofs of Debt Due Oct. 14 CHINA GOLDEN: Creditors' Proofs of Debt Due Aug. 20 CHINA GOLDEN MASTER: Creditors' Proofs of Debt Due Aug. 20 DAINTREE LIMITED: Members' Final Meeting Set for Aug. 13 EURASIA RESOURCES: Placed Under Voluntary Wind-Up JADE VI: Members' Final Meeting Set for Aug. 26 NEW MEDIA: Shareholder to Receive Wind-Up Report on Aug. 27 NORTHHAVEN LIMITED: Members' Final Meeting Set for Aug. 13 ORPHEUS CAPITAL: Shareholder to Receive Wind-Up Report on Aug. 30 SPRINGTIME LIMITED: Members' Final Meeting Set for Aug. 13 D O M I N I C A N R E P U B L I C * DOMINICAN REP: Firms Blame 15% 1H Drop on Spreading Informality J A M A I C A SAGICOR JAMAICA: Gets Court Approval to Restructure Operations * JAMAICA: Trade Deficit Narrows in First Quarter M E X I C O * Moody's Lowers Ratings on 17 Mexican Sofol RMBS Certificates * High Debt Burden Cues Moody's to Cut Chihuahua's Rating to Ba2 T R I N I D A D & T O B A G O CARIBBEAN CEMENT: Shows Signs of Financial Turnaround - - - - - =========== B R A Z I L =========== BANCO RURAL: S&P Lowers Issuer Credit Rating to 'D' --------------------------------------------------- Standard & Poor's Ratings Services lowered its issuer credit ratings on Banco Rural S.A. (Rural) to 'D' from 'B-' on global scale and to 'D' from 'brB' on national scale. Subsequently, S&P withdrew the ratings. On August 2, the Central Bank announced the liquidation of Rural, given its financial weaknesses and lack of a viable recuperation plan. In 2011, the regulator required the bank to inject R$65 million, reduce exposure, and recognize losses, and in 2012 to inject another R$100 million to comply with minimum capital requirements. In late 2012, S&P downgraded the bank on weak capital, deteriorating asset quality, and losses. Following the bank's liquidation, S&P downgraded it to 'D', reflecting its understanding that the bank is currently unable to service debt, process transactions, and fulfill its obligations, according to terms agreed with customers. S&P has also withdrawn its ratings, because it has insufficient reliable information to maintain the ratings on Rural. ========================== C A Y M A N I S L A N D S ========================== ALLFIVE LIMITED: Members' Final Meeting Set for Aug. 13 ------------------------------------------------------- The members of Allfive Limited will hold their final meeting on Aug. 13, 2013, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands ARBROK FUND: Placed Under Voluntary Wind-Up ------------------------------------------- On May 2, 2013, the sole shareholder of Arbrok Fund passed a resolution that voluntarily winds up the company's operations. Only creditors who were able to file their proofs of debt by June 11, 2013, will be included in the company's dividend distribution. The company's liquidator is: Appleby Trust (Cayman) Ltd Clifton House, 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands BROOKSTONE INVESTMENTS: Members' Final Meeting Set for Aug. 13 -------------------------------------------------------------- The members of Brookstone Investments Limited will hold their final meeting on Aug. 13, 2013, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands CHEYNE ABS: Creditors' Proofs of Debt Due Aug. 28 ------------------------------------------------- The creditors of Cheyne ABS Opportunities General Partner Inc. are required to file their proofs of debt by Aug. 28, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 18, 2013. The company's liquidator is: Mourant Ozannes Cayman Liquidators Limited Reference: Christine Fletcher Telephone: +1 (345) 949 4123 Facsimile: +1 (345) 949 4647; or Mourant Ozannes Cayman Liquidators Limited Reference: Peter Goulden Telephone: +1 (345) 949 4123 Facsimile: +1 (345) 949 4647 94 Solaris Avenue, Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands CHIA IAM: Creditors' Proofs of Debt Due Oct. 14 ----------------------------------------------- The creditors of Chia IAM SP Limited are required to file their proofs of debt by Oct. 14, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on July 9, 2013. The company's liquidator is: Paget-Browntrust Company Ltd. c/o Bonnie Willkom Telephone: (345) 949 5122 Facsimile: (345) 949 7920 PO Box 1111 Grand Cayman KY1-1102 Cayman Islands CHINA GOLDEN: Creditors' Proofs of Debt Due Aug. 20 --------------------------------------------------- The creditors of China Golden Wealth Fund are required to file their proofs of debt by Aug. 20, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 15, 2013. The company's liquidator is: Mr. Lor Tak Chiu, Seton Bank of China Tower, 27th Floor 1 Garden Road, Central Hong Kong Facsimile: +852 2526 8295 CHINA GOLDEN MASTER: Creditors' Proofs of Debt Due Aug. 20 ---------------------------------------------------------- The creditors of China Golden Wealth Master Fund are required to file their proofs of debt by Aug. 20, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on July 15, 2013. The company's liquidator is: Mr. Lor Tak Chiu, Seton Bank of China Tower, 27th Floor 1 Garden Road, Central Hong Kong Facsimile: +852 2526 8295 DAINTREE LIMITED: Members' Final Meeting Set for Aug. 13 -------------------------------------------------------- The members of Daintree Limited will hold their final meeting on Aug. 13, 2013, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands EURASIA RESOURCES: Placed Under Voluntary Wind-Up ------------------------------------------------- On July 5, 2013, the member of Eurasia Resources Fund Limited passed a resolution that voluntarily winds up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Alan Turner Turners Strathvale House 90 North Church Street P.O. Box 2636 Grand Cayman, KY1-1102 Cayman Islands Telephone: +1 (345) 814 0700 JADE VI: Members' Final Meeting Set for Aug. 26 ----------------------------------------------- The members of Jade VI, Inc. will hold their final meeting on Aug. 26, 2013, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands NEW MEDIA: Shareholder to Receive Wind-Up Report on Aug. 27 ----------------------------------------------------------- The sole shareholder of New Media Corporation will receive on Aug. 27, 2013, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Leung, Derek Wai Choi Suites 3301-03, 33rd Floor, Tower 2, Nina Tower 8 Yeung Uk Road, Tsuen Wan New Territories Hong Kong Telephone: (852) 2594 0600 Facsimile: (852) 2519 3954 NORTHHAVEN LIMITED: Members' Final Meeting Set for Aug. 13 ---------------------------------------------------------- The members of Northhaven Limited will hold their final meeting on Aug. 13, 2013, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands ORPHEUS CAPITAL: Shareholder to Receive Wind-Up Report on Aug. 30 ----------------------------------------------------------------- The sole shareholder of Orpheus Capital Limited will receive on Aug. 30, 2013, at 10:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Jeffrey Hodkin Harbour Centre, 2nd Floor North Church Street Grand Cayman KY1-1102 Cayman Islands Telephone: +1 (345) 949 2849 Facsimile: (345) 949 5409 SPRINGTIME LIMITED: Members' Final Meeting Set for Aug. 13 ---------------------------------------------------------- The members of Springtime Limited will hold their final meeting on Aug. 13, 2013, to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REP: Firms Blame 15% 1H Drop on Spreading Informality ----------------------------------------------------------------- Dominican Today reports that EFE said sales fell as much as 15% in the first half, according to the National Business Organization (ONEC), which blamed it on what it affirms is rising informality in the Dominican Republic. The ONEC said sagging sales have forced many companies to cut jobs and postpone the opening of new stores, resulting in a negative impact on the Dominican economy, according to Dominican Today. In a statement, Dominican Today notes that the business grouping said among the causes of the fall is the "inconsiderate" growth in the sales by informal commerce, whose promoters in "most cases pay no taxes and sell goods of dubious origin." As an example the ONCE cited the Dominican Textiles Association's (ADITEX) recent denouncement to the Customs Agency, that numerous containers arrive in the country declared as used garments, when in fact contain liquors, appliances and new clothing, the report relates. The report discloses that the organization criticized that while formal businesses are continually audited and taxes, "informal outlets, which operate outside the tax radar, are growing." ============= J A M A I C A ============= SAGICOR JAMAICA: Gets Court Approval to Restructure Operations -------------------------------------------------------------- The Gleaner reports that Sagicor Jamaica has got court approval to restructure its operations under which all companies within the group will become subsidiaries of a new holding company. Under the new scheme the new Sagicor Jamaica Group will become the parent of insurance company Sagicor Life Jamaica Limited, securities dealer Sagicor Investments Jamaica Limited, and commercial bank Sagicor Bank Jamaica Limited, according to The Gleaner. The report notes that Sagicor Jamaica is the latest financial conglomerate to undergo reorganization in line with new laws being devised by the Bank of Jamaica. The scheme will result in all current shareholders of Sagicor Life Jamaica (SCJ) exchanging their SLJ stock for shares of equal value in the new holding company, the report relates. "That means the value of the new shares to be issued in Sagicor Group will be identical in value to the shares previously held in SLJ," the company said in a statement obtained by the news agency. The new holding company will list on the Jamaica Stock Exchange. Company chairman, Richard Byles, was unavailable for comment up to press time. However, The Gleaner says that the release noted that the reorganisation would "align the group's organizational structure with the requirements of new omnibus legislation for deposit- taking institutions, which is soon to be promulgated by Parliament." It said the day-to-day operations of the three entities would be unaffected by the reorganization, the report relates. Reorganization Sagicor Jamaica commenced operations in 1970 as Life of Jamaica Limited. The report recalls that the insurance company was bailed out by the Jamaican Government in the 1990s and subsequently sold to a Barbados operation. Its name and that of other local subsidiaries were later changed to align with the brand identity of ultimate parent Sagicor Financial Corporation, the report relates. The boards of the three companies have already approved the new group structure, the report says. The report discloses that Sagicor Jamaica said it would seek the approval of shareholders at a special meeting on a date that is still to be determined. The report relays that the reorganization also requires approval of the Financial Services Commission and the Bank of Jamaica. The insurance company said it expects to complete the process by September. The report says that the reorganization by Sagicor Jamaica comes six years after Scotiabank Jamaica executed a court-sanctioned scheme in 2007 in which the shares in Bank of Nova Scotia Jamaica were transferred to newly created parent company, Scotia Group Jamaica. Earlier this year, the report discloses, National Commercial Bank Jamaica similarly announced it would be creating a holding company in which the bank would become a subsidiary. NCB said its reorganization would happen before the end of its current financial year, which closes September 30, the report notes. The report says that the Bank of Jamaica requires large financial groups with deposit-taking functions to restructure to facilitate comprehensive supervision of their businesses. The rearrangements are occurring ahead of the tabling of omnibus banking legislation due by March 2014, which is meant to tighten supervision of the financial sector, the report relays. It is also expected to expand the powers of the central bank as police chief of systemic risk, the report notes. The omnibus law is a condition of the four-year IMF bailout agreement for Jamaica signed in May, the report adds. * * * As reported in the Troubled Company Reporter-Latin America on June 17, 2013, Standard & Poor's Ratings Services placed its 'BB+' financial strength and counterparty credit ratings on Sagicor Life Inc. and its 'BB' rating on Sagicor Finance Ltd.'s $150 million, 10-year senior unsecured notes on CreditWatch with negative implications. * JAMAICA: Trade Deficit Narrows in First Quarter ------------------------------------------------- RJR News reports that Jamaica's trade deficit narrowed slightly as imports fell faster than exports in the first four months of the year. The trade deficit, which shows how much more is spent on imports over exports, was US$1.5 billion at the end of April, according to RJR News. The report relates that imports were down 4 percent as the value of oil, machinery and manufactured goods all declined. =========== M E X I C O =========== * Moody's Lowers Ratings on 17 Mexican Sofol RMBS Certificates -------------------------------------------------------------- Moody's de Mexico has downgraded 17 Mexican Sofol RMBS certificates that were previously on review for possible downgrade due to Moody's concerns related to the expected severity of loss on defaulted loans. These rating actions conclude the review initiated on February 22, 2013. The underlying collateral consists of first-lien, fixed-rate mortgage loans denominated in inflation-indexed Unidades de Inversion (UDIs) units and granted primarily to low-income borrowers in Mexico. The originators include Hipotecaria Su Casita S.A. de C.V., Hipotecaria Credito y Casa S.A. de C.V., Metrofinanciera SOFOM E.N.R., Patrimonio S.A. de C.V., ING Hipotecaria S. A. de C.V. and Hipotecaria Nacional S.A. de C.V. The complete rating action is as follows: MXMACCB 04U Class A, downgrade to B2.mx (sf) from Aaa.mx (sf) (Mexican National Scale) and to B3 (sf) from Baa1 (sf) (Global Scale, Local Currency); previously on Feb 22, 2013 placed on review for possible downgrade MXMACCB 05U Class A, downgrade to A1.mx (sf) from Aaa.mx (sf) (Mexican National Scale) and to Ba1 (sf) from Baa1 (sf) (Global Scale, Local Currency); previously on Feb 22, 2013 placed on review for possible downgrade MXMACCB 06U Class A, downgrade to Caa2.mx (sf) from A2.mx (sf) (Mexican National Scale) and to Caa2 (sf) from Ba2 (sf) (Global Scale, Local Currency); previously on Feb 22, 2013 placed on review for possible downgrade MFCB 05U Class A, downgrade to B1.mx (sf) from Baa1.mx (sf) (Mexican National Scale) and to B3 (sf) from B1 (sf) (Global Scale, Local Currency); previously on Apr 16, 2013 downgraded to Baa1.mx (sf) (Mexican National Scale) and B1 (sf) (Global Scale, Local Currency) and placed on review for possible downgrade METROCB 06U Class A, downgrade to Caa2.mx (sf) from Caa1.mx (sf) (Mexican National Scale) and to Caa2 (sf) from Caa1 (sf) (Global Scale, Local Currency); previously on Apr 16, 2013 downgraded to Caa1.mx (sf) (Mexican National Scale) and Caa1 (sf) (Global Scale, Local Currency) and placed on review for possible downgrade MTROCB 07U Class A, downgrade to Caa3.mx (sf) from Caa2.mx (sf) (Mexican National Scale) and to Caa3 (sf) from Caa2 (sf) (Global Scale, Local Currency); previously on Apr 16, 2013 downgraded to Caa2.mx (sf) (Mexican National Scale) and Caa2 (sf) (Global Scale, Local Currency) and placed on review for possible downgrade MTROCB 08U Class A, downgrade to Ca.mx (sf) from Caa3.mx (sf) (Mexican National Scale) and to Ca (sf) from Caa3 (sf) (Global Scale, Local Currency); previously on Apr 16, 2013 downgraded to Caa3.mx (sf) (Mexican National Scale) and Caa3 (sf) (Global Scale, Local Currency) and placed on review for possible downgrade CREYCB 06U Class A, downgrade to Caa2.mx (sf) from B1.mx (sf) (Mexican National Scale) and to Caa2 (sf) from B3 (sf) (Global Scale, Local Currency); previously on Feb 22, 2013 placed on review for possible downgrade CREYCB 06-2U Class B, downgrade to C.mx (sf) from Ca.mx (sf) (Mexican National Scale) and to C (sf) from Ca (sf) (Global Scale, Local Currency); previously on Feb 22, 2013 placed on review for possible downgrade PATRICB 06U Class A, downgrade to A2.mx (sf) from Aa2.mx (sf) (Mexican National Scale) and to Ba2 (sf) from Baa3 (sf) (Global Scale, Local Currency); previously on Feb 22, 2013 placed on review for possible downgrade PATRICB 07U Class A, downgrade to B1.mx (sf) from Aa3.mx (sf) (Mexican National Scale) and to B3 (sf) from Ba1 (sf) (Global Scale, Local Currency); previously on Feb 22, 2013 placed on review for possible downgrade HICOACB 06U Class A, downgrade to Baa1.mx (sf) from Aaa.mx (sf) (Mexican National Scale) and to Ba3 (sf) from Baa1 (sf) (Global Scale, Local Currency); previously on Feb 22, 2013 placed on review for possible downgrade BRHSCCB 05U Class A, downgrade to Baa3.mx (sf) from Aaa.mx (sf) (Mexican National Scale) and to B2 (sf) from Baa1 (sf) (Global Scale, Local Currency); previously on Feb 22, 2013 placed on review for possible downgrade BRHSCCB 06U Class A, downgrade to Baa1.mx (sf) from Aa2.mx (sf) (Mexican National Scale) and to Ba3 (sf) from Baa3 (sf) (Global Scale, Local Currency); previously on Feb 22, 2013 placed on review for possible downgrade BRHSCCB 06-5U Class A, downgrade to A1.mx (sf) from Aaa.mx (sf) (Mexican National Scale) and to Ba1 (sf) from Baa1 (sf) (Global Scale, Local Currency); previously on Feb 22, 2013 placed on review for possible downgrade BRHCCB 07-2U Class A-2, downgrade underlying ratings (reflecting the certificates' intrinsic credit quality absent the financial guarantee provided by MBIA Mexico, rated B3 for insurance financial strength) to Ca.mx (sf) from Caa2.mx (sf) (Mexican National Scale) and to Ca (sf) from Caa2 (sf) (Global Scale, Local Currency); previously on Feb 22, 2013 placed on review for possible downgrade BRHCCB08-2U Class A-2, downgrade to Ca.mx (sf) from Caa1.mx (sf) (Mexican National Scale) and to Ca (sf) from Caa1 (sf) (Global Scale, Local Currency); previously on Feb 22, 2013 placed on review for possible downgrade Ratings Rationale: These rating actions reflect Moody's higher severity of loss assumptions on defaulted loans in the affected transactions. Moody's has increased its severity of loss assumptions due to: i. The limited real estate owned (REO) activity in the Sofol RMBS market, despite the high level of loan defaults; ii. The growing recovery lag; iii. Available data from servicers for the affected transactions and market data signaling negative trends for the severity of loss; and iv. Moody's expectation that a considerable portion of mortgage insurance (MI) policies will not result in a payment from the MI provider. Moody's is now assuming a higher average severity of loss of 74% for the thirteen transactions benefiting from mortgage insurance policies (versus 47% previously) and 85% for those without such policies (versus 61% previously). In the case of deals without MI policies, Moody's believes that their average severity of loss could ultimately approach 100%. This view takes into account the following assumptions used to calculate the severity of loss: i) an average current loan-to- value (LTV) greater than 100% on defaulted loans given the negative amortization of inflation-indexed loans, ii) real estate owned (REO) sales prices reflecting an average discount of 30% or more to the original appraised value, iii) foreclosure costs representing 20% or more of the REO sales price, and iv) unpaid and accrued mortgage interest expense over a recovery lag of at least 6 years. However, due to the potential variability of the severity assumption, based on limited historical REO sales in the sector, these rating actions assume a recovery rate of 15% prior to giving any benefit for MI protection. Moody's also notes that some servicers plan to implement loan modification programs featuring principal forgiveness, which may lead to some recoveries in the long-term. In the case of transactions with MI, in taking this rating action, Moody's assumed that half of the outstanding MI policies covering defaulted loans would not result in a payment from the MI provider. On average, Moody's assumed a lower severity of 74% for deals with MI as compared to 85% for those without MI. The ratings of the affected securities may be sensitive to the severity of loss assumption. Moody's has calculated how the model- indicated global scale ratings of the affected certificates would change in a worst-case scenario, that is, if the severity of loss assumption equaled 100%: MXMACCB 04U Class A, rating would change to Caa3 (sf) from B3 (sf) if the current severity assumption of 74% were to increase to 100%; lifetime projected losses would increase to 50% from 37% of the current pool balance. MXMACCB 05U Class A, rating would change to B2 (sf) from Ba1 (sf) if the current severity assumption of 73% were to increase to 100%; lifetime projected losses would increase to 40% from 30% of the current pool balance. MXMACCB 06U Class A, rating would change to Caa3 (sf) from Caa2 (sf) if the current severity assumption of 73% were to increase to 100%; lifetime projected losses would increase to 50% from 37% of the current pool balance. MFCB 05U Class A, rating would change to Caa2 (sf) from B3 (sf) if the current severity assumption of 74% were to increase to 100%; lifetime projected losses would increase to 33% from 24% of the current pool balance. METROCB 06U Class A, rating would change to Caa3 (sf) from Caa2 (sf) if the current severity assumption of 75% were to increase to 100%; lifetime projected losses would increase to 47% from 35% of the current pool balance. MTROCB 07U Class A, rating would change to Ca (sf) from Caa3 (sf) if the current severity assumption of 78% were to increase to 100%; lifetime projected losses would increase to 53% from 42% of the current pool balance. MTROCB 08U Class A, rating would remain at Ca (sf) if the current severity assumption of 79% were to increase to 100%; lifetime projected losses would increase to 53% from 42% of the current pool balance. CREYCB 06U Class A, rating would change to Caa3 (sf) from Caa2 (sf) if the current severity assumption of 73% were to increase to 100%; lifetime projected losses would increase to 56% from 41% of the current pool balance. CREYCB 06-2U Class B, rating would remain at C (sf) if the current severity assumption of 73% were to increase to 100%; lifetime projected losses would increase to 56% from 41% of the current pool balance. PATRICB 06U Class A, rating would change to B2 (sf) from Ba2 (sf) if the current severity assumption of 85% were to increase to 100%; lifetime projected losses would increase to 38% from 32% of the current pool balance. PATRICB 07U Class A, rating would change to Caa2 (sf) from B3 (sf) if the current severity assumption of 85% were to increase to 100%; lifetime projected losses would increase to 48% from 41% of the current pool balance. HICOACB 06U Class A, rating would change to B3 (sf) from Ba3 (sf) if the current severity assumption of 73% were to increase to 100%; lifetime projected losses would increase to 34% from 25% of the current pool balance. BRHSCCB 05U Class A, rating would change to Caa2 (sf) from B2 (sf) if the current severity assumption of 73% were to increase to 100%; lifetime projected losses would increase to 54% from 40% of the current pool balance. BRHSCCB 06U Class A, rating would change to B3 (sf) from Ba3 (sf) if the current severity assumption of 73% were to increase to 100%; lifetime projected losses would increase to 35% from 26% of the current pool balance. BRHSCCB 06-5U Class A, rating would change to Ba3 (sf) from Ba1 (sf) if the current severity assumption of 74% were to increase to 100%; lifetime projected losses would increase to 33% from 25% of the current pool balance. BRHCCB 07-2U Class A-2, underlying rating would remain at Ca (sf) if the current severity assumption of 85% were to increase to 100%; lifetime projected losses would increase to 66% from 56% of the current pool balance. BRHCCB08-2U Class A-2, rating would change to C (sf) from Ca (sf) if the current severity assumption of 75% were to increase to 100%; lifetime projected losses would increase to 71% from 53% of the current pool balance. The methodologies used in these ratings were 'Moody's Approach to Rating RMBS Using the MILAN Framework', published in May 2013, 'Moody's Approach to Monitoring Residential Mortgage-Backed Securitizations in Mexico' published in August 2009 and "Moody's Approach to Rating Structured Finance Securities in Default" published in November 2009. Moody's considered the servicer's practices and considers them adequate. Moody's notes that these rating actions reflect servicers' limited ability to successfully foreclose on defaulted loans and to liquidate REO properties. Period of time covered in the financial information used to determine the rating was October 30, 2004 to May 31, 2013. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. * High Debt Burden Cues Moody's to Cut Chihuahua's Rating to Ba2 ---------------------------------------------------------------- Moody's de Mexico downgraded the issuer ratings of the state of Chihuahua to A2.mx from A1.mx (Mexico National Scale) and to Ba2 from Ba1 (Global Scale, local currency). The outlook remains negative. Ratings Rationale: The downgrade of the issuer ratings reflects the sizable cash financing requirements posted during the last two years, which have deteriorated Chihuahua's liquidity position and prompted a rapid increase in the levels of net direct and indirect debt. The negative outlook reflects the various challenges that the state will face redressing its key financial metrics in the near to medium term. During the last two years, Chihuahua registered significant cash financing requirements equivalent to -12%, on average, of total revenues. The cash financing requirements have resulted from a structural misalignment between revenue and expenditure growth, mainly reflecting current expenditures pressures related to education and health. The state has financed part of its cash financing requirements with short-term lines of credit and accounts payable. Net working capital (current assets minus current liabilities) deteriorated to reach -11% of total expenditures at the end of 2012, a very weak level compared to national peers. Chihuahua's debt levels have also increased rapidly during the past five years. The ratio of net direct and indirect debt to total revenues increased to 31.9% in 2012 from a low 9.0% in 2008. Nonetheless, the state's debt service (both principal and interest) continues to be moderate, representing only 1.3% of total revenues in 2012. The negative outlook reflects Moody's expectations that the deterioration in Chihuahua's key metrics could continue in the near term. Moody's notes that the state plans to undertake various measures to increase revenues and control its operating expenditures. Moreover, the state is in the process of refinancing its short-term debt with long-term debt, which could improve its liquidity position and reduce its debt ratio to 24% of total revenues by the end of 2013. Moody's will monitor closely the results of these measures. What Could Change The Rating Up/Down Given the negative outlook on the ratings, Moody's does not expect upward pressures in the near term. Notwithstanding, a steady reduction in cash financing requirements, along with the strengthening of the state's liquidity position, could generate positive pressure on the ratings. A downgrade of the ratings would be likely if Chihuahua continues to record sizable cash financing requirements that lead to further increases in debt levels and a more negative liquidity position. The principal methodology used in this rating was Regional and Local Governments published on January 18, 2013. Moody's National Scale Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".mx" for Mexico. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN CEMENT: Shows Signs of Financial Turnaround ----------------------------------------------------- RJR News reports that Caribbean Cement Company Limited is showing signs of a financial turnaround with a big decline in losses. It suffered a consolidated loss of J137 million for the first six months of 2013 down from J$1.2 billion during the corresponding period last year, according to RJR News. The report relates that this year's loss resulted from J$701 million of non-cash foreign exchange losses compared to J$136 million in 2012. RJR News notes that the sale of cement was up and this resulted in revenue increasing by J$900 million to J$5.6 billion. In the meantime, RJR News says that Caribbean Cement is attributing its improved financial performance to increased revenue from the 3 per cent price adjustment in the domestic market in April and a doubling of exports in the second quarter. This was due primarily to the company's entry into the Panama market, RJR News discloses. Caribbean Cement also experienced operational gains through significant improvements in its plant efficiency, in particular energy consumption, following a US$5 million capital maintenance and upgrade earlier this year, RJR News relays. As a result of the improved performance, Caribbean Cement was able to meet its debt obligations over the last six months, RJR News adds. Caribbean Cement Company Limited manufactures and sells cement. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 18, 2011, Caribbean Cement Company Limited has incurred a JM$608.08 million loss in the three months ended April to June 2011 from JM$217.95 million loss in the same period last year. The company incurred JM$857.56 million loss in the six months ended January to June 2011 from a JM$213.40 million in the same period 2010. Caribbean Cement posted a JM$1.58 billion loss in the year ended 2010. *********** 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 * * *