/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/130808.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Thursday, August 8, 2013, Vol. 14, No. 156 Headlines B R A Z I L BANCO RURAL: Moody's Downgrades and Withdraws Ratings HYPERMARCAS SA: Saw Stronger Consumer Demand in July, CEO Says INDUSTRIAS METALURGICAS: Fitch Affirms 'B+' Issuer Default Rating WPE International: Fitch Affirms 'B+' Issuer Default Rating C A Y M A N I S L A N D S 47 DEGREES: Members Receive Wind-Up Report BIRMINGHAM HOLDINGS: Shareholder to Hear Wind-Up Report on Aug. 22 CHIA IAM: Shareholders' Final Meeting Set for Oct. 21 EMERSON CAPITAL: Shareholder to Receive Wind-Up Report on Aug. 28 INVESTCORP SPECIAL: Shareholders' Final Meeting Set for Oct. 21 INVESTCORP SPECIAL ONSHORE: Shareholders' Meeting Set for Oct. 21 KOREA FIRST: Shareholder to Receive Wind-Up Report on Sept. 6 MAXIMUM AFRICA: Members' Final Meeting Set for Aug. 26 MEDLEY CREDIT: Shareholders' Final Meeting Set for Aug. 30 MSR ASIA: Members' Final Meeting Set for Aug. 26 PENDRAGON RESEARCH: Members' Final Meeting Set for Aug. 26 UPTI CAYMAN: Shareholders' Final Meeting Set for Aug. 20 ZAIS MATRIX V-A: Shareholder to Hear Wind-Up Report on Sept. 3 ZAIS MATRIX VI-C: Shareholder to Hear Wind-Up Report on Sept. 3 D O M I N I C A N R E P U B L I C * DOMINICAN REP: Leaders Fear Going Broke From Haiti Trade Spat * DOMINICAN REP: Mogul OKs Wage Hike, Sees Small Firm Bankruptcies E C U A D O R REPUBLIC OF ECUADOR: S&P Revises Outlook to Positive M E X I C O CEMEX SAB: Announces Pricing of US$1BB in Senior Secured Notes CEMEX SAB: S&P Assigns 'B' Rating on $1BB Senior Secured Notes P U E R T O R I C O AES PUERTO RICO: Fitch Affirms 'BB' Rating on $161.87MM Bonds T R I N I D A D & T O B A G O PETROTRIN: Industrial Unrest Cuts Trinmar Output X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - =========== B R A Z I L =========== BANCO RURAL: Moody's Downgrades and Withdraws Ratings ----------------------------------------------------- Moody's Investors Service has lowered Banco Rural S.A.'s baseline credit assessment (BCA) to c, from caa1, and downgraded the bank's long-term global local and foreign currency deposit ratings to C, from Caa1. At the same time, Moody's downgraded Rural's long-term Brazilian national scale deposit rating to C.br, from Caa1.br. Concurrently, Moody's affirmed Rural's bank financial strength at E and Rural's short-term deposit ratings. At their current level all ratings carry no outlook. At the same time, the rating agency said that it will withdraw all ratings following the Central Bank of Brazil's announcement on August 2, 2013 of the liquidation of Banco Rural. At the time of withdrawal, Rural's ratings are as follows: Bank financial strength of E, which maps to a standalone baseline credit assessment of c Global local currency deposit ratings of C and Not Prime Foreign currency deposit ratings of C and Not Prime Brazilian national scale deposit ratings of C.br and BR-4 Ratings Rationale: The downgrade and withdrawal of Rural's ratings follow the Central Bank of Brazil's announcement on August 2, 2013 that it had liquidated the bank as a result of its insolvency and the lack of a credible and viable capitalization plan that could revert its capital shortfall. Moody's noted that Rural's operations had been affected by the involvement of members of its management team in a political scandal that led to declining confidence and operations, with negative effect on its financial and economic conditions. The last time Rural published audited financial statements was in June 2012. In downgrading Rural's deposit ratings to C, Moody's highlights the uncertainty regarding the potential recovery rate of Rural's uninsured obligations, now that the bank's liquidation has been decreed. Moody's C global scale rating implies expected losses in the range of 65% to 100% to creditors. The last rating action on Rural occurred on June 12, 2013, when Moody's downgraded Rural's bank financial strength to E, from E+, and lowered its unsupported baseline credit assessment to caa1, from b3. Moody's also downgraded Rural's long-term global local and foreign currency deposit ratings to Caa1, from B3, and long- term Brazilian national scale deposit rating to Caa1.br, from B1.br. The short-term local and foreign currency deposit ratings of Not Prime and the short-term Brazilian national scale deposit rating of BR-4 remained unchanged. Moody's also maintained the review for possible downgrade on Rural's supported deposit ratings. The principal methodology used in rating this bank was "Global Banks" published on 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. Banco Rural S.A. is headquartered in Belo Horizonte, Brazil. As of June 2012, the bank had total assets of approximately R$5.63 billion ($2.79 billion) and equity of R$359 million ($178 million). HYPERMARCAS SA: Saw Stronger Consumer Demand in July, CEO Says -------------------------------------------------------------- Reuters reports that Hypermarcas SA has seen early signs of stronger consumer demand in July, Chief Executive Claudio Bergamo told analysts on a call to discuss second-quarter earnings. Hypermarcas posted an unexpected quarterly profit as strong sales and improving profit margins offset the impact of a currency swing on debt-servicing costs, according to Reuters. * * * As reported in the Troubled Company Reporter on July 3, 2013, Standard & Poor's Ratings Services affirmed its 'BB-' global scale ratings on Hypermarcas S.A. At the same time, S&P raised the national scale rating to 'brA' from 'brA-'. The outlook is stable. INDUSTRIAS METALURGICAS: Fitch Affirms 'B+' Issuer Default Rating ----------------------------------------------------------------- Fitch Ratings has affirmed the following ratings of Industrias Metalurgicas Pescarmona S.A.I.C.y F. (IMPSA): -- Foreign currency Issuer Default Rating (IDR) at 'B+'; -- Local currency IDR at 'B+'; -- USD225 million senior unsecured notes due 2014 at 'B+/RR4'; -- National scale IDR at 'AA(arg)'; -- USD225 million senior unsecured notes due 2014 at 'AA(arg)'; -- Classes 6,7,8,9,10,and 11 senior unsecured notes at 'AA(arg)'. The Rating Outlook is Stable. WPEI is a direct subsidiary of WPE, which in turn is wholly owned by IMPSA. WPEI notes are irrevocably and unconditionally guaranteed by IMPSA and WPE (IMPSA's Brazilian subsidiary) on a senior unsecured basis. WPEI's ratings reflect the creditworthiness of the guarantors. WPE is a fully owned subsidiary of IMPSA with strong operating, strategic and financial ties to its parent company. The 'B+' IDR assumes all WPEI's future debt issuances would be fully and unconditionally guaranteed by IMPSA, and will rank pari passu with IMPSA's senior unsecured debt. Key Rating Drivers: IMPSA's 'B+' ratings reflect the positive trend for the company's long-term business fundamentals which are the result of sustained global demand for hydro and wind power generating equipment. They also incorporate the company's growing business presence in Brazil and its sizeable backlog, which provides some certainty to the company's cash generation over the medium term. Balanced against these strengths are the company's high leverage, aggressive capital expenditure program and its backlog concentration on a few large projects in developing countries. A sudden downturn in key markets would negatively impact IMPSA's ability to develop new projects. The company's operations have a significant concentration in Brazil. For the fiscal year ended Dec. 31, 2012, 45% of revenues came from Brazil. The growth of its business in Brazil has reduced IMPSA's exposure to more volatile markets such as Argentina and has increased its access to multiple funding sources. This increase in funding sources has reduced concerns about IMPSA's need to finance its working capital needs in Argentina should trading conditions in that market deteriorate. It has also enabled the company's foreign currency rating to exceed the 'B-' country ceiling of Argentina. At March 31, 2013, IMPSA's backlog was around USD3.8 billion with 72% in wind manufacturing; 83% of manufacturing backlog came from Brazil. Given the long-term production cycle of IMPSA's developments (usually in the range of four years for hydro and 12- 18 months for wind farms), this backlog level provides some certainty to the company's cash generation in the medium term. Existing purchase power agreements (PPAs) also contribute to the company's future revenue generating ability. Backlog concentration for this industry is high, with five projects representing above 50% at March 31, 2013. The main project in the hydro equipment business unit is the Belo Monte hydro project in Brazil, whereas the main projects in the wind equipment unit are Arauco IV (Argentina) and Ceara III (Brazil). The company's free cash flow (FCF) is anticipated to remain negative during 2013 and 2014 due to capital expenditures and growing working capital needs. Investments for fiscal year-end 2013 are estimated at approximately USD225 million. Much of the cash deficit will be funded with nonrecourse project financing to develop wind farm projects in Brazil. Fitch expects IMPSA's total recourse debt-to-EBITDA ratio to remain around 4.0x, and decrease in accordance with the successful execution of the project backlog and the cash flow generation of the new energy projects in operation. As of March 31, 2013, IMPSA had USD982 million of total debt and total debt-to-EBITDA of 4.0x. Since March 2013, the company changed the accounting for its participation in the wind farms through Energimp, and is no longer consolidating their results. Non-recourse debt at wind farms is therefore no longer included at IMPSA's level (approximately USD418 million at March 31, 2013). Liquidity is tight. IMPSA had USD33.7 million of cash and marketable securities at the end of March 2013, covering short- term debt by 14%. The company is expected to meet its upcoming debt obligations with a mix of cash from operations and the rollover of existing debt. IMPSA increased Brazilian short-term credit lines up to USD200 million and issued notes in the local capital market. Rating Sensitivities: The company's ratings could be downgraded or a Negative Outlook could be assigned if non-recourse financing increases above levels anticipated by Fitch. Additionally, any material performance problems that threaten future projects and cash flow, or a failure to comply with the terms for the operation of the wind farms (for which long-term PPAs have been signed with Eletrobras and the CCEE and are financed by BNDES) could also result in a Negative Outlook or downgrade. WPE International: Fitch Affirms 'B+' Issuer Default Rating ----------------------------------------------------------- Fitch Ratings has affirmed the following WPE International Coorperatief's (WPEI) ratings: -- Foreign Currency Issuer Default Rating (IDR) at 'B+'; -- Local Currency IDR at 'B+'; -- US$390 million Senior Unsecured Notes due 2020, at 'B+/RR4'. The Rating Outlook is Stable. WPE International Coorperatief (WPEI) is a direct subsidiary of WPE, which in turn is wholly owned by Industrias Metalurgicas Pescarmona (IMPSA). WPEI notes are irrevocably and unconditionally guaranteed by IMPSA and WPE (IMPSA's Brazilian subsidiary) on a senior unsecured basis. The ratings reflect the creditworthiness of the guarantors. Fitch rates IMPSA 'B+', while WPE is a fully owned subsidiary of IMPSA with strong operating, strategic and financial ties to its parent company. The 'B+' IDR assumes all WPEI's future debt issuances would be fully and unconditionally guaranteed by IMPSA, and will rank pari passu with IMPSA's senior unsecured debt. KEY RATING DRIVERS IMPSA's 'B+' ratings reflect the positive trend for the company's long-term business fundamentals due to sustained global demand for hydro and wind power generating equipment. They also incorporate the company's growing business presence in Brazil and its sizeable backlog, which provides some certainty to the company's cash generation over the medium term. Balanced against these strengths are the company's high leverage, aggressive capital expenditure program and its backlog concentration on a few large projects in developing countries. A sudden downturn in key markets would negatively impact IMPSA's ability to develop new projects. The company's operations have a significant concentration in Brazil. For the fiscal year ended Dec. 31, 2012, 45% of revenues came from Brazil. The growth of its business in Brazil has reduced IMPSA's exposure to more volatile markets such as Argentina and has increased its access to multiple funding sources. This increase in funding sources has reduced concerns about IMPSA's need to finance its working capital needs in Argentina should trading conditions in that market deteriorate. It has also enabled the company's foreign currency rating to exceed the 'B-' country ceiling of Argentina. At March 31, 2013, IMPSA's backlog was around USD 3.8 billion with 72% in wind manufacturing; 83% of manufacturing backlog came from Brazil. Given the long-term production cycle of IMPSA's developments (usually in the range of four years for hydro and 12 - 18 months for wind farms), this backlog level provides some certainty to the company's cash generation in the medium term. Existing PPAs also contribute to the company's future revenue generating ability. Backlog concentration for this industry is high, with five projects representing above 50% at March 31, 2013. The main project in the hydro equipment business unit is the Belo Monte hydro project in Brazil, whereas the main projects in the wind equipment unit are Arauco IV (Argentina) and Ceara III (Brazil). The company's free cash flow (FCF) is anticipated to remain negative during 2013 and 2014 due to capital expenditures and growing working capital needs. Investments for fiscal year-end 2013 are estimated at approximately USD 225 million. Much of the cash deficit will be funded with nonrecourse project financing to develop wind farm projects in Brazil. Fitch expects IMPSA's total recourse debt to EBITDA ratio to remain around 4.0x, and decrease in accordance with the successful execution of the project backlog and the cash flow generation of the new energy projects in operation. As of March 31, 2013 IMPSA had USD 982 million of total debt and total debt-to-EBITDA of 4.0x. Since March 2013, the company changed the accounting for its participation in the wind farms through Energimp, and is no longer consolidating their results. Non-recourse debt at wind farms is therefore no longer included at IMPSA's level (approx. USD 418 million at March 31, 2013). Liquidity is tight. IMPSA had USD 33.7 million of cash and marketable securities at the end of March 2013, covering short- term debt by 14%. The company is expected to meet its upcoming debt obligations with a mix of cash from operations and the rollover of existing debt. IMPSA increased Brazilian short-term credit lines up to USD200 million and issued notes in the local capital market. RATING SENSITIVITIES The company's ratings could be downgraded or the Outlook revised to Negative if non-recourse financing increases above levels anticipated by Fitch. Additionally, any material performance problems that threaten future projects and cash flow, or a failure to comply with the terms for the operation of the wind farms (for which long term PPAs have been signed with Eletrobras and the CCEE and are financed by BNDES) could also result in a Negative Outlook or downgrade. ========================== C A Y M A N I S L A N D S ========================== 47 DEGREES: Members Receive Wind-Up Report ------------------------------------------ The members of 47 Degrees North New Generation Fund Ltd received on July 26, 2013, 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 BIRMINGHAM HOLDINGS: Shareholder to Hear Wind-Up Report on Aug. 22 ------------------------------------------------------------------ The shareholder of Birmingham Holdings, Ltd. will receive on Aug. 22, 2013, at 11:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Michael Lubin Telephone: (345) 815 1793 Facsimile: (345) 949 9877 CHIA IAM: Shareholders' Final Meeting Set for Oct. 21 ----------------------------------------------------- The shareholders of Chia IAM SP Limited will hold their final meeting on Oct. 21, 2013, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Bonnie Willkom Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands EMERSON CAPITAL: Shareholder to Receive Wind-Up Report on Aug. 28 ----------------------------------------------------------------- The shareholder of Emerson Capital Offshore Fund, Ltd. will receive on Aug. 28, 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: Delta FS Limited c/o Janeen Aljadir Telephone: (345) 743 6626 PO Box 11820 Grand Cayman KY1-1009 Cayman Islands INVESTCORP SPECIAL: Shareholders' Final Meeting Set for Oct. 21 --------------------------------------------------------------- The shareholders of Investcorp Special Opportunities Offshore Fund Limited will hold their final meeting on Oct. 21, 2013, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Bonnie Willkom Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands INVESTCORP SPECIAL ONSHORE: Shareholders' Meeting Set for Oct. 21 ----------------------------------------------------------------- The shareholders of Investcorp Special Opportunities Onshore Fund Limited will hold their final meeting on Oct. 21, 2013, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Paget-Brown Trust Company Ltd. c/o Bonnie Willkom Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands KOREA FIRST: Shareholder to Receive Wind-Up Report on Sept. 6 ------------------------------------------------------------- The shareholder of Korea First Mortgage No.5 Limited will receive on Sept. 6, 2013, at 8:30 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. 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 MAXIMUM AFRICA: Members' Final Meeting Set for Aug. 26 ------------------------------------------------------ The members of Maximum Africa Alpha 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 MEDLEY CREDIT: Shareholders' Final Meeting Set for Aug. 30 ---------------------------------------------------------- The shareholders of Medley Credit Strategies, Ltd. will hold their final meeting on Aug. 30, 2013, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray MG Management Ltd. PO Box 30116 Landmark Square, 2nd Floor 64 Earth Close, Seven Mile Beach Grand Cayman KY1-1201 Cayman Islands Telephone: +1 (345) 749 8181 Facsimile: +1 (345) 743 6767 MSR ASIA: Members' Final Meeting Set for Aug. 26 ------------------------------------------------ The members of MSR Asia Acquisitions 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 PENDRAGON RESEARCH: Members' Final Meeting Set for Aug. 26 ---------------------------------------------------------- The members of Pendragon Research Limited 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 UPTI CAYMAN: Shareholders' Final Meeting Set for Aug. 20 -------------------------------------------------------- The shareholders of UPTI Cayman Sub, Inc. will hold their final meeting on Aug. 20, 2013, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: K.D. Blake c/o Chris Van de Water Telephone: (345) 815 2645/ (345) 949 4800 Facsimile: (345) 949 7164 P.O. Box 493 Grand Cayman KY1-1106 Cayman Islands ZAIS MATRIX V-A: Shareholder to Hear Wind-Up Report on Sept. 3 -------------------------------------------------------------- The shareholder of Zais Matrix V-A Cayman Limited will receive on Sept. 3, 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: Ogier c/o Jo-Anne Maher Telephone: (345) 815 1762 Facsimile: (345) 949 9877 ZAIS MATRIX VI-C: Shareholder to Hear Wind-Up Report on Sept. 3 -------------------------------------------------------------- The shareholder of Zais Matrix VI-C Ltd. will receive on Sept. 3, 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: Ogier c/o Jo-Anne Maher Telephone: (345) 815 1762 Facsimile: (345) 949 9877 =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REP: Leaders Fear Going Broke From Haiti Trade Spat --------------------------------------------------------------- Dominican Today reports that Santiago Business and Industries Association (Acis) President Sandy Filpo warned of bankruptcies stemming from the trade dispute with Haiti, and called on the Government to strike a free trade deal at once. The business leader defended the quality of Dominicans products, calling them competitive, noting that Haiti's ban on local production has to do with a different entrepreneurial policy, according to Dominican Today. "The trade dispute with Haiti affects all Acis members directly or indirectly, because they have business relationship for the sale and purchase of goods, services or raw material. We ask the Government to come up with a quick solution to the problems faced by the country's businesses and industries," the report quoted Mr. Filpo as saying. The report notes that Mr. Filpo said while the Acis agrees with the search for new markets for Dominican products, while that's achieved, a free trade agreement with Haiti must be negotiated to restore exports. Mr. Filpo, the report relays, said while the dispute with Haiti now affects even onions, garlic, beans, plastics, flour, chickens and eggs, others such as sand and adhesives could also be hurt by Port-au-Prince's ban. * DOMINICAN REP: Mogul OKs Wage Hike, Sees Small Firm Bankruptcies ------------------------------------------------------------------ Dominican Today reports that Jose Luis Corripio (Pepin), one of Dominican Republic's top moguls, said he agrees with a wage hike for workers as President Danilo Medina proposed, but noted the collapse of small companies isn't the goal of higher salaries. Mr. Corripio said the first requisite of having a paycheck is to have a job and for that you have to have businesses and activity which generates sources of employment, according to Dominican Today. "We cannot increase wages which constrict and confine jobs, but always maintain growth because there's been little growth in Dominican Republic's jobs sources in recent years, and that's a corporate responsibility which is the best source to create jobs," the report quoted Mr. Corripio as saying. ============= E C U A D O R ============= REPUBLIC OF ECUADOR: S&P Revises Outlook to Positive ---------------------------------------------------- Standard & Poor's Ratings Services said it revised its outlook on the Republic of Ecuador to positive from stable. At the same time, S&P affirmed its 'B/B' sovereign credit ratings on Ecuador. "Our outlook revision signals the possibility of an upgrade if the Ecuadorian government successfully increases its tax revenues (reducing its dependence on volatile oil revenues) or diversifies its funding options by regaining access to international capital markets or improving the banking sector's willingness to buy government debt," said Standard & Poor's credit analyst Richard Francis. The ratings on Ecuador reflects the perceived improvement in the government's willingness and capacity to service its debt because of better financing options, higher oil production, and healthy economic growth prospects. The perceived increase in willingness to service its debt reflects Ecuador's track record over the past four years of paying, on a timely basis, interest on its sole external bond and its bilateral and multilateral debt. This follows its repudiation of two other external bonds in 2009. The government's improved relations with private-sector investors, especially in the key oil and mining sectors, have also contributed to S&P's view that the Ecuadorian government's economic policymaking has become more pragmatic. Economic growth prospects and government revenues have risen because of the government's measures to boost public-sector and foreign direct investment. Real GDP per capita growth reached 3.5% in 2012, and S&P expects that it will remain close to 2.5% over the next three years. Greater oil production and continued high oil prices--combined with additional funding from China--have provided the government with needed financing and allowed for increased public-sector investment. In addition, greater legal transparency surrounding the rules for investing in the oil and mining sectors has begun to attract more foreign direct investment. S&P expects that investment in hydroelectric projects and in the key oil and mining sectors will nearly double in 2013- 2014, helping keep total investment at about 25% of GDP. As a result, S&P expects that general government revenues, which have risen to 40% of GDP, will remain steady and that the government's net-debt-to-GDP ratio will remain below 25% during the next three years. However, some of the factors that led to Ecuador's 2008-2009 debt default remain rating constraints: -- Willingness to pay remains a concern since the default was a result of a lack of willingness, more than ability, to pay. -- Net general government debt was only 23% of GDP prior to the default. -- International capital markets remain closed to Ecuador, in light of its treatment of some creditors in 2008-2009. Monetary policy flexibility is largely nonexistent because of the use of the U.S. dollar as the local currency. Because Ecuador does not have its own currency, Ecuadorian banks have no lender of last resort. Ecuador's current account has moved into small deficits from surpluses as imports connected to expanded foreign direct investment have risen. International reserves cover just over a month of current account payments. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. =========== M E X I C O =========== CEMEX SAB: Announces Pricing of US$1BB in Senior Secured Notes -------------------------------------------------------------- Cemex, S.A.B. de C.V. disclosed the pricing of US$1.0 billion of senior secured notes denominated in U.S. dollars. The Notes will bear interest at an annual rate of 6.5% and mature on Dec. 10, 2019. The Notes will be issued at par and will be callable commencing on Dec. 10, 2017. The closing of the offering is expected to occur on Aug. 12, 2013, subject to satisfaction of customary closing conditions. CEMEX intends to use the approximately US$995 million of net proceeds from the offering to purchase a portion of the 9.50% Senior Secured Notes due 2016 issued by CEMEX Finance LLC, and the remainder, if any, for general corporate purposes, including the repayment of other indebtedness. CEMEX currently expects to purchase a portion of the 2016 Notes at a price of approximately US$1,075 for each US$1,000 of 2016 Notes plus accrued interest. The Notes will share in the collateral pledged for the benefit of the lenders under CEMEX's Facilities Agreement, dated as of Sept. 17, 2012, and other secured obligations having the benefit of such collateral, and will be guaranteed by CEMEX Mexico, S.A. de C.V., CEMEX Concretos, S.A. de C.V., Empresas Tolteca de Mexico, S.A. de C.V., New Sunward Holding B.V., CEMEX Espa�a, S.A., Cemex Asia B.V., CEMEX Corp., Cemex Egyptian Investments B.V., Cemex Egyptian Investments II B.V., CEMEX France Gestion (S.A.S.), Cemex Research Group AG, Cemex Shipping B.V. and CEMEX UK. CEMEX SAB: S&P Assigns 'B' Rating on $1BB Senior Secured Notes -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' issue-level rating and a recovery rating of '3' to CEMEX S.A.B. de C.V.'s (CEMEX; B/Positive/--) up to $1 billion senior secured notes due 2019. The recovery rating of '3' indicates that bondholders can expect a meaningful (50% to 70%) recovery in the event of a payment default. CEMEX intends to use the net proceeds to purchase a portion of the 9.5% senior secured notes due 2016 issued by CEMEX Finance LLC, and the remainder for general corporate purposes, including the repayment of other debt, in accordance with its Facilities Agreement. The new notes benefit from a security package, reflecting the same terms as those of all of the company's other senior capital market debt. The security package includes a full and unconditional guarantee--on a joint and several and on a general senior basis--by CEMEX Mexico S.A. de C.V., CEMEX Espana, S.A., CEMEX Corp., New Sunward Holding B.V., and by subsidiaries that CEMEX owns directly or indirectly. According to S&P's criteria, this bond issuance is not a distressed restructuring as CEMEX does not depend on the issuance to mitigate the risk of a non-payment scenario in the near term. RATINGS LIST CEMEX S.A.B. de C.V. Corporate credit rating B/Positive/-- Ratings Assigned Up To $1 billion senior secured notes due 2019 B Recovery rating 3 ===================== P U E R T O R I C O ===================== AES PUERTO RICO: Fitch Affirms 'BB' Rating on $161.87MM Bonds ------------------------------------------------------------- Fitch Ratings affirms the 'BB' rating on AES Puerto Rico L.P.'s (AES-PR) $161.87 million tax-exempt senior cogeneration facility revenue bonds due 2026, and $33.1 million taxable senior cogeneration facility revenue bonds due 2022. The Rating Outlook is Stable. KEY RATING DRIVERS: -- Contracted Revenue Profile: The 25-year tolling-style power purchase agreement (PPA) with an investment-grade counterparty effectively mitigates capacity price, energy margin, and dispatch risks throughout the debt term, subject to project availability and heat rates. Revenue Risk: Midrange -- Persistent Operational Issues: AES-PR has historically been susceptible to forced outages that have reduced availability and capacity payments. Management has taken a proactive approach to limit future forced outages with encouraging initial results. However, it remains unclear whether the project can achieve targeted availability levels on a consistent basis. Further, project heat rates continue to remain above the PPA fuel cost recovery threshold, though capital improvements and use of off-spec coal have lessened the gap. Consequently, the operating cost profile has exceeded original estimates leading to reduced margins and lower debt service coverage ratios (DSCRs). Operating Risk: Weaker -- Manageable Supply Risk: Fuel supply risk is mitigated by a two-year, fixed-price fuel supply agreement sufficient to meet the project's expected fuel requirements. Fitch believes the term of the supply agreement is not a credit risk given the historical precedence for renewal and global, liquid market for coal. Fuel price risk is mitigated by the tolling- style PPA, subject to heat rates. Ash inventory is actively managed by the project via the sale of its AGREMAX product and raw, dry ash. Fitch believes that AES-PR's efforts have helped to offset near-term ash disposal concerns, but cash flow uncertainty is heightened without a permanent solution. Supply Risk: Midrange -- Weaker Debt Structure: The project's bonds are fixed-rate and mature within the PPA term, but have back-loaded amortization profiles. The equity distribution, leverage, and debt service reserve provisions are generally consistent with similarly rated thermal power projects. AES-PR does not have O&M and major maintenance reserves, which increases the importance of operational stability and heightens the project's reliance on other sources of liquidity. Fitch recognizes that approximately 55% of the total debt outstanding, including unrated bank loans, is variable rate with over 80% synthetically fixed with investment-grade counterparties. Debt Structure: Weaker -- Speculative-Grade Financial Profile: The Fitch rating case results in average DSCRs of over 1.15x during the next five years, consistent with the assigned rating category, based on stressed levels of availability, costs, heat rates, and interest rates. However, the DSCR profile becomes considerably weaker after 2020 when the contractual capacity payment is reduced, resulting in coverage of approximately 1.05x. Fitch notes that this coincides with the principal amortization period of the senior bonds and exposes bondholders to longer term operational risks. RATING SENSITIVITIES: -- Operational Performance: Demonstrated ability or inability to improve and sustain equivalent availability factors above 90% or heat rate excursions for fuel cost recovery that changes the long-term DSCR profile could change the rating. -- Operating Costs: Consistently higher or lower cost profile from incremental maintenance, ash management, and fuel expenses/savings resulting in a material change in financial flexibility. SECURITY: All project revenues, controlled bank accounts, and security interest in the contract rights of AES-PR. CREDIT SUMMARY: The 12-month rolling average equivalent availability factor generally remained slightly below or at the 90% PPA requirement for full capacity payments since the last review. However, Fitch recognizes that management's corrective and preventative maintenance initiatives have borne encouraging results. The repairs have resulted in a reduction in the AES-PR's year-to-date forced outage rate to 3.7% from a historical rate in excess of 10% and a heat rate improvement of approximately 130 Btu/kWh. The project's 2012 DSCR of 1.2x is generally consistent with the Fitch rating case. This underperformance is due to availability below and heat rates above Fitch base case expectations, as well as higher than anticipated maintenance and interest costs. Fitch notes that incremental maintenance costs were incurred to replace at-risk boiler tubes, among other repairs, that should help mitigate operational issues associated with the original project design. Fitch expects the impact of operational issues and higher costs to improve when all preventative and corrective maintenance is completed. Fitch needs to observe several years of improved operations, with a corresponding increase in the Fitch rating case DSCR profile to at least 1.30x, for a positive rating action. Conversely, an inability to improve the operating and cost profiles over the next few years, resulting in Fitch rating case DSCRs remaining below 1.15x, may lead to a negative rating action. Fitch believes that AES-PR's ability to improve the DSCR profile to a level consistent with a higher rating will be a challenge, but views the current and expected future operational improvements as mitigants to further downgrades. AES-PR is a special purpose entity that is an indirect wholly owned facility of AES Corporation (rated 'BB-', Stable Outlook). The project was formed in 1994 to own and operate a net 454.3 megawatt coal-fired circulating fluidized bed combustion power plant in Guayama, Puerto Rico. The project's main revenue sources are capacity and energy sales to Puerto Rico Electric Power Authority (rated 'BBB-', Stable Outlook) under the terms of a 25- year PPA, which is a modified tolling agreement that reimburses fuel, subject to heat rate requirements, and certain other operating costs. =============================== T R I N I D A D & T O B A G O =============================== PETROTRIN: Industrial Unrest Cuts Trinmar Output ------------------------------------------------ Trinidad Express reports that production levels at Petroleum Company of Trinidad and Tobago (Petrotrin)'s Trinmar operations in Point Fortin have been affected by industrial action involving employees of the company's marine transport contractors. Petrotrin stated that it was informed of a what it described as a stand-off between its marine contractors and their employees, who cited issues, including their current rates of remuneration, according to Trinidad Express. "While the industrial action did not directly involve company employees, this stand-off has resulted in the unavailability of marine transport to access offshore locations. This is impacting Petrotrin's ability to access offshore locations and hinders the ability to service marine field installations," Petrotrin said in a statement obtained by the news agency. Trinidad Express notes that the company said several installations in the South West Soldado and North Fields have been shut in and Petrotrin's Exploration and Production (E&P) operations suffered a production loss of approximately 1,000 barrels of oil after one day of the industrial unrest. "This has impacted Petrotrin's E&P delivery of oil and the quality and quantity of crude oil delivery to our refinery at this critical juncture in our operations, further affecting our bottom- line," the company said, the report notes. Trinidad Express relays the company said that in an effort to bring a quick resolution to the situation and protect its own operations, Petrotrin has written to all its marine contractors with reference to their contractual obligations. "At this time, Petrotrin takes note of the efforts of its employees to improve production and we look forward to the continued support of all stakeholders as we continue to implement different measures to improve our profits, maintain our competitiveness and ensure our long term sustainability. . . . Further, Petrotrin wishes to assure the general public that all measures are in place to ensure the continuity of supply to its customers," the company stated, the report relays. About Petrotrin Petroleum Company of Trinidad and Tobago is the major state-owned oil company in Trinidad and Tobago. The company was established in 1993 by the merger of Trintopec and Trintoc, two state-owned oil companies. Petrotrin's main holdings are extensive, mature onshore fields located across southern Trinidad. Large areas have been leased out to small private producers who are able to make a profit on wells that are unprofitable for Petrotrin, giving it higher labor costs. The company operates a refinery at Pointe-Pierre, just north of San Fernando in south Trinidad. Most crude petroleum produced in Trinidad is exported without being refined. The refinery depends on imported crude (mostly from Venezuela), which is either used domestically or exported. * * * As reported in the Troubled Company Reporter-Latin America on June 9, 2010, Trinidad Express related that four members of Petrotrin submitted their resignation letters. According to the report, Malcom Jones resigned as chairman of Petrotrin and from the State boards. The report related board members Lawford Dupres, who chaired the National Petroleum board, attorney Kerwin Garcia and Andrew McIntosh had also resigned. Prime Minister Kamla Persad-Bissessar, the report noted, said that Cabinet had ordered a forensic audit of Petrotrin as there were "grounds for suspicion of misconduct" at Petrotrin similar to what may have transpired at special-purpose State enterprise UDeCOTT. The report said that the company was experiencing serious financial difficulties resulting in high cost overruns of its refinery upgrade. The situation was exacerbated by a US$12 billion lawsuit by World GTL Inc. against Petrotrin, the report added. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Aug. 8-10, 2013 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 22-24, 2013 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ Nov. 1, 2013 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Atlanta Marriott Marquis, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2, 2013 BEARD GROUP, INC. 19th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York, N.Y. Contact: 240-629-3300 or http://bankrupt.com/ Dec. 5-7, 2013 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Terranea Resort, Rancho Palos Verdes, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. A list of Meetings, Conferences and Seminars appears in each Thursday's edition of the TCR-LA. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2013. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-241-8200. * * * End of Transmission * * *