TCRLA_Public/130905.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, September 5, 2013, Vol. 14, No. 176


                            Headlines



B R A Z I L

AMPLA ENERGIA: S&P Raises CCR to 'BB+'; Outlook Stable
CAMARGO CORREA: S&P Affirms 'BB' Rating; Outlook Positive
FIBRIA CELULOSE: Moody's Affirms Ba1 Global Scale Rating
JBS USA: Discloses Offering of Senior Notes Due 2021
JBS USA: S&P Assigns 'BB' Rating to US$400 Million Term Loan B


C A Y M A N  I S L A N D S

A D GULAB: Shareholders' Final Meeting Set for Sept. 20
BERMUDA INVESTORS: Shareholder to Hear Wind-Up Report on Sept. 13
BLACK AND WHITE: Shareholders' Final Meeting Set for Sept. 30
CAMOMILE LIFFEY: Shareholder to Hear Wind-Up Report on Oct. 4
CREATIVE DRAGONS: Shareholders' Final Meeting Set for Sept. 17

F.A. INVESTMENTS: Shareholder to Hear Wind-Up Report on Oct. 4
HB ASIA: Shareholder to Hear Wind-Up Report on Oct. 4
JANA PIRANHA: Shareholder to Hear Wind-Up Report on Sept. 23
LIFEINVEST OPPORTUNITY: Shareholders' Meeting Set for Sept. 26
PHAROS GAS: Shareholders' Final Meeting Set for Sept. 18

PINEBANK CATALYST: Members' Final Meeting Set for Sept. 23
PINEBANK CATALYST MASTER: Members' Final Meeting Set for Sept. 23
PRIMUS CLO I: Shareholder to Hear Wind-Up Report on Oct. 4
TSUKIJI SHOCHIKU: Shareholders' Final Meeting Set for Sept. 27
WALLPAPER INVESTMENT: Shareholders' Final Meeting Set for Sept. 30


D O M I N I C A N   R E P U B L I C

* DOMINICAN REP: Lack of Export Strategy Fuels Monetary Fires


J A M A I C A

SAGICOR LIFE: Gets Nod From Shareholders to Reorganize
UC RUSAL: Forecast Value of Shares Downgraded From Buy to Sell
* JAMAICA: Gov't to Pump More Funds Into Small Business Sector


M E X I C O

DOCUFORMAS SAPI: S&P Affirms 'B+' Rating; Outlook Stable
OFFICE DEPOT: S&P Assigns 'BB' Corp. Credit Rating; Outlook Stable
OFFICE DEPOT: Fitch Assigns 'BB+' Issuer Default Rating
SERVICIOS DE AGUA: Moody's Withdraws Ba2/A2.mx Issuer Ratings


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars


                            - - - - -


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


AMPLA ENERGIA: S&P Raises CCR to 'BB+'; Outlook Stable
------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
ratings on Ampla Energia e Serviā€”os S.A. (AMPLA) to 'BB+' from
'BB' on global scale and to 'brAA' from 'brAA-' on national scale.
The outlook is stable.

The upgrade reflects AMPLA's improving financial risk profile,
whose assessment S&P revised to "intermediate" from "significant."
The ratings also reflect the company's "fair" business risk
profile and "less than adequate" liquidity.

AMPLA's "intermediate" financial risk profile reflects its
intermediate credit metrics, prudent financial policy, and
adequate financial flexibility.  Somewhat constraining the rating
is the company's aggressive capital expenditure (capex) plan,
which pressures the free operating cash.  AMPLA has continued to
show a prudent financial policy by reducing debt levels by 25% in
the last 12 months and maintaining a relatively low dividend
payout, of about 25%, in the last five years.  The company also
has a relatively smooth amortization profile, with about
R$150 million of annual maturities in the next three years and
access to local capital markets and low-cost loans from the
Brazilian Development Bank.  The ratings also incorporate AMPLA's
aggressive capex plan put in place to reduce energy losses.
Annual capex for the next two years will be in the R$400 million -
R$430 million range, which will weaken FOCF.


CAMARGO CORREA: S&P Affirms 'BB' Rating; Outlook Positive
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' ratings on
Camargo Correa S.A. (Camargo).  At the same time, S&P affirmed its
'BB' ratings on its cement subsidiaries InterCement Brasil S.A.
(Intercement) and Cimpor Cimentos de Portugal, S.G.P.S., S.A.
(Cimpor) and revised the outlook on all entities to positive.

The rating action is based on S&P's expectation that Camargo's
credit metrics will improve in the next few years, potentially
becoming more aligned with a "significant" financial risk profile
from its current "aggressive."  Current leverage ratios went up
significantly after the debt-financed acquisition of Cimpor, but
the company should still benefit from the consolidation and
synergies in its cement business through InterCement.  S&P assumes
debt to EBITDA from 4.0x to 5.0x in 2013 and 2014 (net debt to
EBITDA close to 3.5x) and funds from operations (FFO) to net debt
trending to 20%.

"Although Camargo has historically implemented an aggressive
mostly debt-financed acquisition strategy, the company also has a
solid track record in successfully consolidating and developing
its new businesses.  We also expect the group's growth to be
mostly organic and that new investments will follow capital
discipline in order to deleverage," said Standard & Poor's credit
analyst Renata Lotfi.


FIBRIA CELULOSE: Moody's Affirms Ba1 Global Scale Rating
--------------------------------------------------------
Moody's Investors Service has affirmed Fibria's Ba1 global scale
rating and Aa2.br national scale ratings and changed the ratings
outlook to positive from stable. The change in outlook reflects
the company's ongoing improvement in operational performance,
reduction in debt levels, and Moody's expectations that the
depreciation of the Brazilian Real will help offset potentially
weaker pulp prices in the short to medium term, supporting a
continued deleveraging of Fibria's balance sheet. Moody's belief
that Fibria will continue to manage capex and dividends
distribution to support its improving credit profile, as well as
the affiliation with Votorantim Participacoes S.A. (Baa3; positive
outlook) also support the positive outlook.

Ratings affirmed:

Issuer: Fibria Celulose S.A.

CFR: Ba1 (global scale) and Aa2.br (national scale rating)

Issuer: Fibria Overseas Finance Limited

$63mm notes due 2019: Ba1 (global scale)

$870mm notes due 2020: Ba1 (global scale)

$750mm notes due 2021: Ba1 (global scale)

The outlook for the ratings is positive.

Ratings Rationale:

Fibria's Ba1 rating reflects its leading position as the largest
producer of market pulp in the world and its competitive
production costs, which are among the lowest worldwide based on
structural advantages in Brazil relative to international peers.
"Such competitive cost base has supported healthy operating
margins for the past periods, and Fibria's financial discipline
with regard to capital expenditures and shareholder distribution
allowed for material free cash flow generation in the past three
years, most of which was directed to gross debt reduction" says
Moody's Vice President - Senior Analyst Barbara Mattos. "The
change in outlook reflects Moody's expectations that Fibria's
leverage will decline even further over the next 12-18 months
backed by the recent depreciation of the Brazilian Real, which
translates into higher local currency pulp prices and offsets the
impact of potentially weaker international pulp prices in Fibria's
cash flow", added Mattos.

The Ba1 rating also incorporates the benefit from the ownership
(29.4% of total common shares) and expected support from
Votorantim Participacoes (Baa3; positive outlook) due to existing
cross acceleration provisions in part of its outstanding debt.
Votorantim's positive outlook reflects the company's conservative
liquidity profile and strategy of leverage reduction, which is
being adopted by Fibria. Conversely, Fibria's low product
diversity given its full exposure to pulp and its relative small
size when compared with global industry peers as measured by net
revenues are constraining factors for its rating.

The positive outlook incorporates Moody's expectations that Fibria
will continue to deleverage its balance sheet even amid expected
lower international pulp prices in the next 12-18 months. The
outlook also reflects Moody's belief that Fibria will continue to
manage its capex program and dividend distribution to preserve its
liquidity profile while the company reduces its gross debt.

The ratings could be upgraded if Fibria manages to reduce leverage
as measured by Total Adjusted Debt to Adjusted EBITDA approaching
3.0x (4.7x as of LTM ended June 2013) together with Retained Cash
Flow (defined as Funds From Operations less Dividends) less Capex
to Total Adjusted Debt above 12% on a consistent basis (6.9% as of
LTM ended June 2013).

Downgrade pressure on the ratings would result if Fibria is unable
to continue to deleverage, or experiences a deterioration in
liquidity. Also, a deterioration of Votorantim Participacoes'
(Baa3; positive outlook) credit quality could negatively impact
Fibria's ratings. A substantial increase in secured debt could
negatively affect the senior unsecured notes rating. Negative
rating pressure would also arise if Total Adjusted Debt to
Adjusted EBITDA stays above 4.5x consistently in the upcoming
quarters together with Retained Cash Flow (defined as Funds From
Operations less Dividends) less Capex to Total Adjusted Debt below
5% on a consistent basis and Adjusted EBITDA to Interest Expenses
below 2.5x (3.1x as of LTM ended June 2013) on a consistent basis.
All credit metrics are adjusted according to Moody's standard
adjustments and definitions.

The principal methodology used in this rating was the Global Paper
and Forest Products Industry Methodology published in September
2009.

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.

Fibria Celulose S.A. is the world's largest producer of market
pulp with annual production capacity of 5.25 million metric tons.
With the conclusion of the sale of the Piracicaba paper unit in
the third quarter of 2011, Fibria became solely a market pulp
producer focused on the international market. In the last twelve
months ended June 2013, Fibria reported consolidated net revenues
of BRL 6.5 billion ($ 3.2 billion converted by the average foreign
exchange rate for the period), coming mostly from Europe (40%),
North America (27%), Asia (24%) and Latin America (9%).


JBS USA: Discloses Offering of Senior Notes Due 2021
----------------------------------------------------
JBS USA, LLC, a wholly-owned subsidiary of JBS S.A., disclosed
that it intends to commence, subject to market conditions, a
private offering of $400.0 million aggregate principal amount of a
new series of senior notes due 2021.  JBS USA and JBS USA Finance,
Inc. will be co-issuers of the Notes.

Concurrently with the issuance of the Notes, JBS USA intends to
borrow incremental term loans in the aggregate principal amount of
US$400.0 million (the "Incremental Term Loans"), pursuant to its
existing senior secured term loan facility.  JBS USA intends to
use the net proceeds of the Notes and the Incremental Term Loans
to fund a tender offer and consent solicitation in respect of any
and all 11.625% senior notes due 2014 (the "2014 Notes") issued by
JBS USA and JBS USA Finance (which it has announced separately)
and the remainder, if any, for general corporate purposes.


JBS USA: S&P Assigns 'BB' Rating to US$400 Million Term Loan B
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' ratings to
JBS USA LLC's proposed incremental US$400 million term loan B due
2020 and to JBS USA LLC's and JBS USA Finance Inc.'s US$400
million senior unsecured bond reopening due 2021.  The terms and
conditions of the new bonds are the same as for the existing
US$650 million bonds issued in January 2012.

The issue-level ratings reflect the credit quality of the parent
company, JBS S.A. (BB/Stable/--), as it and its wholly owned
subsidiary, JBS USA, unconditionally guarantee the debts.  JBS
will use most of the proceeds to refinance its US$700 million bond
due May 2014, extend debt maturities, and improve its capital
structure.

RATINGS LIST

JBS S.A.
  Corporate credit rating                  BB/Stable/--

Ratings Assigned

JBS USA LLC
  $400 million term loan                  BB

Reopening
JBS USA LLC
JBS USA Finance Inc.
  US$400 million add-on senior unscd bond   BB


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


A D GULAB: Shareholders' Final Meeting Set for Sept. 20
-------------------------------------------------------
The shareholders of A D Gulab (Grand Cayman) will hold their final
meeting on Sept. 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:

          Richard John Luce
          43/45 La Motte Street
          St Helier, Jersey JE4 8SD
          Channel Islands
          Telephone: +44 (1534) 702800
          Facsimile: +44 (1534) 702870


BERMUDA INVESTORS: Shareholder to Hear Wind-Up Report on Sept. 13
-----------------------------------------------------------------
The shareholder of Bermuda Investors Limited will hear on
Sept. 13, 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:

          Joseph Zuiker
          6 Front Street, Hamilton
          HM11, Bermuda


BLACK AND WHITE: Shareholders' Final Meeting Set for Sept. 30
-------------------------------------------------------------
The shareholders of Black and White Investment Ltd. will hold
their final meeting on Sept. 30, 2013, at 12:00 noon, to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          MBT Trustees Ltd.
          Telephone: 945-8859
          Facsimile: 949-9793/4
          P.O. Box 30622 Grand Cayman KY1-1203
          Cayman Islands


CAMOMILE LIFFEY: Shareholder to Hear Wind-Up Report on Oct. 4
-------------------------------------------------------------
The shareholder of Camomile Liffey Investments (UK) Ltd. will
receive on Oct. 4, 2013, at 8:45 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


CREATIVE DRAGONS: Shareholders' Final Meeting Set for Sept. 17
--------------------------------------------------------------
The shareholders of Creative Dragons SPC will hold their final
meeting on Sept. 17, 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:

          Gene Dacosta
          c/o Noel Webb
          Telephone: (345) 814 7394
          Facsimile: (345) 945 3902
          P.O. Box 2681 Grand Cayman KY1-1111
          Cayman Islands


F.A. INVESTMENTS: Shareholder to Hear Wind-Up Report on Oct. 4
--------------------------------------------------------------
The shareholder of F.A. Investments of Cayman will receive on
Oct. 4, 2013, at 9:15 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


HB ASIA: Shareholder to Hear Wind-Up Report on Oct. 4
-----------------------------------------------------
The shareholder of HB Asia Holdings, Ltd. will hear on Oct. 4,
2013, at 9:45 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


JANA PIRANHA: Shareholder to Hear Wind-Up Report on Sept. 23
------------------------------------------------------------
The shareholder of Jana Piranha Offshore Fund, Ltd will hear on
Sept. 23, 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 Piers Dryden
          Telephone: 815 1842
          Facsimile: (345) 949 9877


LIFEINVEST OPPORTUNITY: Shareholders' Meeting Set for Sept. 26
--------------------------------------------------------------
The shareholders of Lifeinvest Opportunity Fund LDC will hold
their meeting on Sept. 26, 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:

          Darren P. Riley
          c/o BNP Paribas Bank & Trust Cayman Limited
          PO Box 10632, 3rd Floor, Royal Bank House
          24 Shedden Road, George Town
          Grand Cayman KY1-1006
          Cayman Islands


PHAROS GAS: Shareholders' Final Meeting Set for Sept. 18
--------------------------------------------------------
The shareholders of Pharos Gas Investment Fund Ltd. will hold
their final meeting on Sept. 18, 2013, at 10:15 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Pharos Investment Management LLC
          c/o Barnaby Gowrie
          Telephone: +1 (345) 914 6365


PINEBANK CATALYST: Members' Final Meeting Set for Sept. 23
----------------------------------------------------------
The members of Pinebank Catalyst Fund, Ltd. will hold their final
meeting on Sept. 23, 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


PINEBANK CATALYST MASTER: Members' Final Meeting Set for Sept. 23
-----------------------------------------------------------------
The members of Pinebank Catalyst Master Fund, Ltd. will hold their
final meeting on Sept. 23, 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


PRIMUS CLO I: Shareholder to Hear Wind-Up Report on Oct. 4
----------------------------------------------------------
The shareholder of Primus CLO I, Ltd. will receive on Oct. 4,
2013, at 9:00 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


TSUKIJI SHOCHIKU: Shareholders' Final Meeting Set for Sept. 27
--------------------------------------------------------------
The shareholders of Tsukiji Shochiku Building Investment Limited
will hold their final meeting on Sept. 27, 2013, to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          David Dyer
          Telephone: (345)949 8244
          Facsimile: (345)949 5223
          P.O. Box 1984 Grand Cayman KY1-1104
          Cayman Islands


WALLPAPER INVESTMENT: Shareholders' Final Meeting Set for Sept. 30
------------------------------------------------------------------
The shareholders of Wallpaper Investment Ltd. will hold their
final meeting on Sept. 30, 2013, at 12:00 noon, to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          MBT Trustees Ltd.
          Telephone: 945-8859
          Facsimile: 949-9793/4
          P.O. Box 30622 Grand Cayman KY1-1203
          Cayman Islands


===================================
D O M I N I C A N   R E P U B L I C
===================================


* DOMINICAN REP: Lack of Export Strategy Fuels Monetary Fires
-------------------------------------------------------------
Dominican Today reports that the Greater Santo Domingo (AEIH)
Industries Association warned that the country will be "putting
out monetary fires" until it develops an export strategy that
guarantees a strong external sector to generate currency.

Organization president Victor Castro said the Central Bank's
measures to contain the unusual spike in the dollar's rate confirm
the need to move towards production with a widened competitive
platform, according to Dominican Today.

"Other economies have withstood major devaluations than Dominican
Republic's, but we haven't seen any of the monetary nonsense as
here, because they are supported by sectors that earn sufficient
foreign currency," AEIH said, the report notes.

                          Campaign Promise

Mr. Castro noted that although president Danilo Medina's campaign
promised stimulus for Dominican exporter, little efforts are
currently seen, starting with the notion of getting the Foreign
Service to conquer markets, Dominican Today relates.

Dominican Today adds that Mr. Castro said official decisions are
neither seen, as the campaign promised, on making tourism a motor
for development.  "It will be impossible to achieve the sector's
goal "doing more of the same."



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


SAGICOR LIFE: Gets Nod From Shareholders to Reorganize
------------------------------------------------------
RJR News reports that Sagicor Life Jamaica shareholders have given
the nod for the reorganization of the company into the Sagicor
Group.  The shareholders unanimously voted on a scheme of
arrangement at an extraordinary general meeting, according to RJR
News.

The report relates that the Scheme of Arrangement must now be
sanctioned by an Order of the Supreme Court.

The Registrar of Companies must also be notified before it becomes
effective, the report notes.  It will result in all stock units in
Sagicor Life Jamaica being cancelled and the newly-created holding
company, Sagicor Group Jamaica, issuing and allotting ordinary
shares of equal value to shareholders, the report relates.

Sagicor Life shares will be delisted from the Jamaica Stock
Exchange and Sagicor Group stocks listed in their place, the
report adds.


UC RUSAL: Forecast Value of Shares Downgraded From Buy to Sell
--------------------------------------------------------------
RJR News reports that Bank of America Merrill Lynch Global
Research has downgraded the forecast value of shares in aluminum
giant Rusal.

The bank also switched its recommendation for UC Rusal securities
from buy to sell, according to RJR News.

The report relates that the Bank of America said the downgrade was
due to aluminum prices, which could drop by three per cent by the
end of 2013.  The report notes that the bank's analysts believe
that by mid-2014 a ton of aluminum could be worth 10 per cent less
than it is now, which means a reduction in the company's
profitability.

And UC Rusal may delay the start of production at one of its
biggest projects, seeking to ease a global glut of aluminum, the
report notes.

RJR News relays that UC Rusal and other big aluminum makers are
cutting output in response to record inventories and stubbornly
low prices of the metal used in vehicles and packaging. US
producer Alcoa Incorporated, Rusal's main rival, recently
suspended production at smelters in Brazil as part of a review of
its capacity.

UC Rusal last month reported a steeper-than-expected loss for the
second quarter and said it may postpone the start of production at
its smelter in Siberia to 2014, the report relates.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 25, 2013, RJR News reported that UC Rusal said its financial
losses for 2012 were bigger than initially reported.  The company
has revised its net loss to US$337 million from the US$55 million
US dollar loss reported the previous month, according to RJR News.
The report related that UC Rusal said the adjustment was made
after reviewing its share of profit from its subsidiary Norilsk
Nickel. UC Rusal, the report added, said the adjusted financial
statements have been reviewed by its auditor.

TCRLA reported on Sept. 28, 2012, that RJR News said UC Rusal
expects to reach a deal with its lenders within six months to
refinance part of an US$11 billion debt burden.  It said it will
agree to new loan conditions by the end of 2012 before its
covenant holiday expires, according to RJR News.


* JAMAICA: Gov't to Pump More Funds Into Small Business Sector
--------------------------------------------------------------
RJR News reports that the Jamaican government appears set to
provide more funds to boost the small business sector.  The money
will come from the National Insurance Fund's (NIF) job creation
initiative, according to RJR News.

The report relates that Derrick Kellier, Minister of Labor and
Social Security, is scheduled to provide details at a media
briefing.

Mr. Kellier, the report notes, will outline increases in the
credit facility for medium and small enterprises.


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


DOCUFORMAS SAPI: S&P Affirms 'B+' Rating; Outlook Stable
--------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B+' global scale
and 'mxBBB/mxA-3' Mexican national scale ratings on Docuformas
S.A.P.I. de C.V.  The outlook is stable.

"The ratings on Docuformas reflect its adequate asset quality,
adjusted capitalization and good profitability.  On the other
hand, the company's revenues are concentrated in its core business
line amid strong competition.  It has client concentration and is
highly reliant on market debt," said Standard & Poor's credit
analyst Ingrid Ortiz Machain.

Docuformas' credit quality has improved markedly with its stricter
underwriting policies and collection procedures intended to
strengthen its credit risk management.  As of June 2013,
nonperforming assets (NPAs) represented 3.9%, down from 4.8% at
the end 2011 and 7.5% in 2010.  The company's loan-loss reserves
have fully covered its NPAs since 2010, with a drop in its net
charge-off ratio to 0.7% in June 2013, from 3.9% in December
2011.  The company has improved its asset quality despite a
sustained compound annual growth rate (CAGR) of 15% for the past
three fiscal years.  S&P expects a 25% growth rate for 2013
stemming from its larger and more efficient commercial unit and
revised sales practices.


OFFICE DEPOT: S&P Assigns 'BB' Corp. Credit Rating; Outlook Stable
------------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' global scale
corporate credit rating to Office Depot de Mexico, S.A. de C.V.
(ODM).  S&P also assigned its 'BB' issue-level rating to the
company's proposed 7-year senior unsecured notes for up to
$350 million, with a recovery rating of '3'.  ODM's Mexican and
Colombian subsidiaries will guarantee the proposed notes.  The
outlook on the corporate credit rating is stable.

"The ratings on ODM reflect its favorable profitability and market
position in the office supplies segment, a moderate financial
policy, our expectations of positive free operating cash flow, and
its adequate liquidity.  Somewhat mitigating these factors are the
company's geographic concentration mainly in Mexico, its limited
product diversification, the intense competition, cyclicality of
the office supplies sector, and credit metrics in line with a
significant financial risk profile given the expected bond
issuance, said Standard & Poor's credit analyst Sandra Tinoco.

With 258 stores and about 7,000 stock-keeping units (SKUs) as of
June 30, 2013, ODM is the largest chain of office supplies in
Mexico, also offering consumer electronics, furniture and business
services.  To a lesser extent, the company has presence in
Colombia, Guatemala, Costa Rica, El Salvador, Honduras and Panama.
In July 2013, Grupo Gigante S.A.B. de C.V. (GG; NR) acquired the
final 50% stake in ODM held by Office Depot Inc. (ODI); with this,
GG now fully owns ODM.


OFFICE DEPOT: Fitch Assigns 'BB+' Issuer Default Rating
-------------------------------------------------------
Fitch Ratings has assigned the following ratings to Office Depot
de Mexico S.A. de C.V. (ODM):

-- Foreign currency Long-term Issuer Default Rating (IDR) at
   'BB+';

-- Local currency Long-term IDR at 'BB+';

-- Proposed USD350 million senior notes due 2020 at 'BB+(exp)'.

The Rating Outlook is Stable.

Proceeds from the offering will be used to finance part of the
buyout of Office Depot Inc.'s 50% ownership in ODM by Grupo
Gigante (Gigante). On June 3, 2013, Gigante signed a stock
purchase agreement acquiring the remaining 50% of ODM through a
bridge loan for up to MXN8.85 billion. Half of the bridge loan
will be paid by the notes' issuance, with the remainder paid for
by an initial public offering (IPO) by Gigante of ODM. The bridge
loan has guarantees by all subsidiaries, including ODM. Despite
ODM not being able to pay dividends as per the covenants, Fitch
believes that Gigante has flexibility to service the remaining
debt of the bridge loan were the IPO to be delayed. As per the
description of the notes, the shareholder dividend declared by ODM
prior to the issuance and related to the shareholder loan are
excluded from those restrictions.

The ratings reflect ODM's leadership position in the office
products super-store segment, diversified geographical footprint,
low historical adjusted leverage, and generally consistent free
cash flow (FCF) generation. The rating also incorporates the
company's new leverage structure, of about 2.6x debt-to-EBITDA and
adjusted debt-to-EBITDAR of 3.5x, based on the proposed USD350
million issuance.

ODM's operating profile is supported by its national retail
presence in Mexico, as well as its operations in Central America
and Colombia, its mix of large corporate customers, small
businesses and consumers. It has a leading position among Mexican
office supply super stores, while non-Mexican sales represent
about 15% of total sales. In addition, its extensive distribution
network, preponderance of cash sales and mostly local sourcing of
inventory, further supports ODM's business profile.

The company has shown consistent organic growth over the last 12
years, with solid EBITDA generation even during economic
downturns. Fitch expects EBITDA margin to be in the 10%-11% range
as the Carvajal operation, acquired in late 2010, is being fully
migrated to ODM's business model. Same store sales (SSS) were
about 2.9% in 2012, in line with previous years. EBITDA margin has
held broadly constant at 10.5% as of second quarter 2013 (2Q'13),
on a last 12-months (LTM) basis.

The Mexican office supply industry is very fragmented, with the
potential for consolidation by big players such as ODM. Going
forward, ODM will pursue a modest growth strategy, with about
eight store openings per year on average, most of them within
Mexico. Fitch expects these openings to be funded with internally
generated cash flow, as the company has done in the past. Fitch
also believes there are growth opportunities for penetration in
smaller cities, as well as some gains achievable in taking away
market share from mom & pops.

Fitch expects the proposed USD350 million senior notes to increase
leverage to around 2.6x-2.5x on a debt-to-EBITDA basis adjusted
debt-to-EBITDAR: 3.x5-3.4x) for the next few years. Prior to the
proposed issuance, adjusted financial leverage (adjusted
debt/EBITDAR), is 1.5x as of 2Q'13 LTM. Adjusted leverage is
currently completely derived from operating leases, as the firm
does not have any debt on its balance sheet as of 2Q'13.

ODM's liquidity position is adequate, with cash and cash
equivalents of approximately MXN620 million as of 2Q'13. FCF after
dividends has been mostly positive over the past four years,
averaging about MXN60 million, and Fitch expects modest FCF
generation going forward, with Capex around MXN600 million per
year in the medium term. After the USD350 million issuance and
aside from its related shareholder loan and shareholder dividend
to Gigante, the issuer will not be able to pay dividends,
according to covenants, so Fitch would expect for cash to
accumulate, to be used possibly for gross debt reduction.

Rating Sensitivities

Factors that could be detrimental to credit quality include
weaker-than-expected SSS, lower EBITDA margin, or other factors
that could lead to higher-than-expected leverage in the medium
term, including the liability related to guarantees derived from
the bridge loan granted to Gigante to fund the acquisition of 50%
of ODM from Office Depot Inc.

Factors that could improve creditworthiness include stronger-than-
expected operating results or lower debt levels that lead to
adjusted debt-to-EBITDAR ratios below 2.5x, as well a commitment
from a financial policy standpoint to permanently maintain
leverage at this lower level.


SERVICIOS DE AGUA: Moody's Withdraws Ba2/A2.mx Issuer Ratings
-------------------------------------------------------------
Moody's de Mexico has withdrawn the issuer ratings of Ba2/A2.mx,
negative outlook of Servicios de Agua y Drenaje de Monterrey
(SADM). At the same time, Moody's de Mexico has withdrawn debt
ratings of Ba2/A2.mx on the following three loans:

MXN1.835 billion (original face value) loan from Banobras
MXN1.6 billion (original face value) loan from Banorte, and
MXN1.16 billion (original face value) loan from Banorte

Ratings Rationale:

Moody's has withdrawn the rating because of insufficient
information to monitor the rating, due to the issuer's decision to
cease participation in the rating process.

Given the issuer's decision to cease participation in the rating
process, Moody's believes that the information publicly available
will not allow to continue monitoring SADM's creditworthiness. In
addition, without access to the trust reports for the three bank
loans or to potential changes made to the loans' structures
(pledge and reserve funds), Moody's believes that it is unable to
provide the market with an informed assessment of the current
credit quality of these debt instruments.

The principal methodology used in this rating was "Government-
Related Issuers: Methodology Update" published in July 2010.

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.


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

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

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

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



                            ***********


Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades.  Prices
for actual trades are probably different.  Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind.  It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.

Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

A list of Meetings, Conferences and Seminars appears in each
Thursday's edition of the TCR-LA. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com


                            ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, Frauline S.
Abangan, and Peter A. Chapman, Editors.

Copyright 2013.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000 or Nina Novak at
202-241-8200.


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