/raid1/www/Hosts/bankrupt/TCRLA_Public/130912.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 12, 2013, Vol. 14, No. 181
Headlines
A R G E N T I N A
ARGENTINA REPUBLIC: S&P Lowers Sovereign Credit Rating to 'CCC+'
B R A Z I L
OSX BRASIL: Holders Said to Hire Bingham for Possible Restructure
* EIKE BATISTA: Keeps Bailing to Keep Empire Afloat
B O L I V I A
* BOLIVIA: To Get US$106MM IDB Loan to Improve Public Spending
C A Y M A N I S L A N D S
AOI COMMODITIES: Creditors' Proofs of Debt Due Oct. 9
BLACK RHINO: Creditors' Proofs of Debt Due Sept. 30
CHESTER MANAGEMENT: Creditors' Proofs of Debt Due Sept. 30
CHESTER MANAGEMENT: Members' Final Meeting Set for Oct. 1
CHURCHILL HAVANA: Creditors' Proofs of Debt Due Sept. 30
ERENSIA INVESTMENTS: Placed Under Voluntary Wind-Up
EVERBRIGHT ASHMORE: Creditors' Proofs of Debt Due Oct. 2
FALMOUTH FINANCE: Creditors' Proofs of Debt Due Oct. 6
HILL POND: Creditors' Proofs of Debt Due Sept. 30
ING GOLDMAN: Commences Liquidation Proceedings
SEAOIL MARINE: Creditors' Proofs of Debt Due Sept. 30
SHELF LIFE: Creditors' Proofs of Debt Due Sept. 30
TIGER GLOBAL II: Placed Under Voluntary Wind-Up
TIGER GLOBAL SPV I: Placed Under Voluntary Wind-Up
TIGER GLOBAL SPV II: Placed Under Voluntary Wind-Up
UBS PRESTIGE: Creditors' Proofs of Debt Due Oct. 9
C H I L E
SQM: SVS Accuses Controller and Execs of Breaching Trading Rule
D O M I N I C A N R E P U B L I C
BANCO DE RESERVAS: Fitch Affirms 'B' Foreign & Local Currency IDRs
M E X I C O
BANCO MERCANTIL: Moody's Changes Outlook to Stable; Keeps Ratings
BANCO MERCANTIL: Moody's Affirms Junior Subordinated Debt at Ba1
GENWORTH SEGUROS: S&P Revises Outlook and Affirms 'BB+' Rating
GRUPO CEMENTOS: S&P Affirms 'B' CCR & Revises Outlook to Stable
PROYECTOS ADAMANTINE: Moody's Lowers Ratings on 4 RMBS Tranches
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA REPUBLIC: S&P Lowers Sovereign Credit Rating to 'CCC+'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its unsolicited long-
term foreign and local currency sovereign credit ratings on the
Republic of Argentina (Argentina) to 'CCC+' from 'B-'. At the
same time, S&P lowered its unsolicited short-term ratings on
Argentina to 'C' from 'B'. The outlook on the long-term ratings
is negative. S&P is also revising its transfer and convertibility
assessment on Argentina to 'CCC+' from 'B-'.
RATIONALE
S&P is lowering its ratings on Argentina because of increased
risks to debt service stemming from a lawsuit over the debt the
government of Argentina still maintains in default. The lawsuit
could result in the interruption of payments on bonds currently
under New York jurisdiction, or it could prompt Argentina to
undertake a debt exchange that S&P could view as distressed.
Under S&P's criteria, those outcomes would lead it to lower its
rating on Argentina to 'SD' for selective default. Although
neither outcome is certain, S&P believes that there is at least a
one-in-three chance of either occurring within the coming 12
months.
On Aug. 23, the U.S. Second Circuit Court of Appeals upheld the
ruling of a District Court in New York in favor of the plaintiffs
in the case NML Capital Ltd. et al v. the Republic of Argentina.
The plaintiffs are bondholders who did not participate in the 2005
and 2010 debt exchanges and who have sought to block payments to
bondholders who did participate until they obtain satisfaction of
their claims for full payment. However, the U.S. Second Circuit
Court of Appeals also decided to keep a previously granted stay
order, pending an appeal filed by Argentina with the U.S. Supreme
Court. It is uncertain if the U.S. Supreme Court will accept the
case and, if it does, when it would hand down its ruling. If the
U.S. Supreme Court does not grant the appeal or if it eventually
rules against Argentina, Argentina's ability to service its debt
from the 2005 and 2010 exchange would be compromised.
"We believe Argentina will strive to remain current on its debt
while the judicial process plays out, notwithstanding a decreasing
level of international reserves, limited access to funding, and
growing macroeconomic imbalances, in particular high inflation and
a dual foreign exchange system. For example, Argentina's
president announced on Aug. 26, 2013, that the government was
considering tendering for the 2005 and 2010 restructured bonds in
an exchange that could replicate tenor, amount, and coupon but
change the governing law and jurisdiction of payment to Argentina.
However, enabling legislation for such an exchange has not been
submitted to the National Assembly. A proposal of alternative
payment arrangements that, in our view, materially alter the terms
of its bond indentures to the detriment of creditors could prompt
another downgrade," S&P said.
In addition to lowering S&P's rating, it has revised its transfer
and convertibility (T&C) assessment for Argentina. Argentina
already makes use of a range of exchange controls, and there is a
wide disparity between the official and parallel market exchange
rate. S&P's 'CCC+' T&C assessment reflects the risk that
Argentina's government could tighten further its exchange control
regime to the extent that the ability of the private sector to
service its foreign currency debt becomes impaired.
OUTLOOK
S&P could lower its rating on Argentina if it perceives legal
risks to its debt servicing have increased or have become more
imminent. Among other developments, a decision by the U.S.
Supreme Court not to hear the appeal or the implementation of an
exchange proposal that makes alternative payment arrangements
that, in S&P's view, materially alter the terms of its bond
indentures to the detriment of creditors could prompt a downgrade.
On the other hand, if the U.S. Supreme Court agreed to hear the
case or if S&P perceived the legal risks had moderated, the
ratings could stabilize.
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.
RATINGS LIST
Downgraded
To From
Argentina (Republic of) (Unsolicited Ratings)
Sovereign Credit Rating CCC+/Negative/C B-
/Negative/B
Transfer & Convertibility Assessment CCC+ B-
This unsolicited rating(s) was initiated by Standard & Poor's. It
may be based solely on publicly available information and may or
may not involve the participation of the issuer. Standard & Poor's
has used information from sources believed to be reliable based on
standards established in our Credit Ratings Information and Data
Policy but does not guarantee the accuracy, adequacy, or
completeness of any information used.
===========
B R A Z I L
===========
OSX BRASIL: Holders Said to Hire Bingham for Possible Restructure
-----------------------------------------------------------------
Rodrigo Orihuela & Juan Pablo Spinetto at Bloomberg News report
that creditors of Eike Batista's shipbuilder OSX Brasil SA hired
law firm Bingham McCutchen LLP in preparation for the possible
restructuring of US$500 million in bonds, said two people briefed
on the arrangements.
Unnamed sources said Bingham, based in Boston, is approaching
prospective financial advisers on behalf of a creditor group
representing holders of OSX's dollar-denominated notes due 2015,
according to Bloomberg News.
The source said the group represents about 60 percent of OSX
bondholders, notes the report.
Bloomberg News discloses that investors are turning away from
Batista's commodities startups after a series of missed
operational and financial targets. The entrepreneur created OSX
to supply vessels to sister company OGX Petroleo & Gas
Participacoes SA, which last month hired Rothschild to advise on a
possible restructuring after canceling projects and warning its
only producing oilfield may stop next year, Bloomberg News relays.
Platform Deliveries
Bloomberg News notes that OSX has two other oil platforms. One,
called the OSX-1 is being used by OGX at the Tubarao Azul
oilfield. The OSX-2 platform was delivered to OSX in Singapore by
SBM Offshore NV (SBMO) and will remain in Asia until a decision is
made on its future, OSX said in an e-mailed statement obtained by
Bloomberg News. OSX-3 will be deployed at the Tubarao Martelo
field operated by OGX.
Petroliam Nasional Bhd., or Petronas, acquired a 40 percent stake
in the field earlier this year for US$850 million.
Petronas said last month that the deal hinges on OGX's debt
restructuring, while OGX said Malaysia's state oil producer isn't
entitled to set that condition, Bloomberg News adds.
OSX Brasil SA is a shipbuilder controlled by billionaire Eike
Batista.
As reported in the Troubled Company Reporter-Latin America on
June 26, 2013, Reuters said that OSX Brasil denied a report it
failed to make payments on debt held by Spanish infrastructure
group Acciona. The local Folha da S.Paulo newspaper reported that
Batista's OSX Brasil was struggling to avoid bankruptcy after it
defaulted on some BRL500 million ($222 million) in debt held by
Acciona, according to Reuters.
* EIKE BATISTA: Keeps Bailing to Keep Empire Afloat
---------------------------------------------------
Paulo Winterstein and Luciana Magalhaes at The Wall Street Journal
report that Brazilian tycoon Eike Batista took another step to
sell assets of his industrial conglomerate as he seeks cash to
keep his heavily indebted companies solvent.
Mining company MMX said that Abu Dhabi's Mubadala Development Co.,
already a big investor in Mr. Batista's industrial group, and
Dutch investment fund Trafigura Group were in talks to buy a port
owned by MMX in a deal worth US$400 million, according to The Wall
Street Journal.
The deal should be concluded in four weeks, MMX said, notes the
report. An unnamed source said that Mubadala, which currently has
US$1.5 billion invested in Mr. Batista's holding company EBX,
could swap some of those investments -- which were structured as
loans -- for ownership of the port, the report added.
Meantime in New York, holders of US$3.6 billion in bonds issued by
OGX Petroleo e Gas Participacoes SA are gearing up for talks with
Mr. Batista's representatives to discuss a potential debt
restructuring and avoid a lengthy bankruptcy process, as the oil
company faces a huge debt load and operational problems, notes
WSJ.
The report recalls that OGX ran into trouble a little more than a
year ago after failing to meet production targets, eroding
confidence in the rest of Mr. Batista's interconnected EBX empire.
The Brazilian tycoon included an X in the names of all the
companies in the group to represent the multiplication of wealth.
The report says that Mr. Batista has lost the confidence of
investors as his companies struggled to meet revenue forecasts
after raising more than US$6 billion in share offerings and about
US$11 billion in debt during the past seven years, when liquidity
was abundant and the offerings were pitched as a way to ride
Brazil's economic emergence.
With Brazil's growth fizzling and the U.S. Federal Reserve
considering a reversal in its monetary policy, many investors are
now seeking a way out. The intensive capital needs of EBX have
forced the sale of assets ranging from mining, shipbuilding,
electric-power and oil-exploration activities, the report
discloses.
WSJ says Mr. Batista's firms are largely interlocking. The
entrepreneur envisioned a fully integrated industrial conglomerate
where flagship firm OGX would buy oil platforms from his
shipbuilder OSX Brasil, which would have a shipyard at a port
being developed by his transportation company, LLX Logistica.
LLX, in turn, would get revenue from shipping MMX iron ore and
from onsite manufacturers that would buy electricity from power
utility MPX, which would generate power using coal shipped from
CCX Carvao da Colombia, the report discloses.
Analysts said that a failure to reach a deal with OGX's creditors
could lead to bankruptcy proceedings that would likely tie up
investors in Brazil's notoriously slow courts for years, WSJ
notes.
The report says that creditors were already disappointed that Mr.
Batista has balked at fulfilling a 2012 commitment to provide an
extra $1 billion in capital should it be needed at OGX.
Investors said Mr. Batista is also shedding assets that have the
most underlying value, the report notes.
"The assets being sold are those that always had clearer
forecasts" for future development, the report quoted Eduardo
Carlier, a portfolio manager at Schroder Investment in Sao Paulo,
as saying. But these sales are unlikely to relieve solvency
concerns about OGX. "Nobody knows what will happen with that
company," Mr. Carlier added.
Mubadala is in talks with Mr. Batista for the possible purchase of
additional assets, said Mubadala Communications Director Brian
Lott, while declining to say what assets the firm is considering,
the report relays.
Moreover, the report adds, Mr. Batista said that he could sell his
remaining 25% stake in power utility MPX Energia SA. Mr. Batista
already sold a controlling stake in MPX to German utility E.ON
earlier this year for around US$700 million, the report discloses.
=============
B O L I V I A
=============
* BOLIVIA: To Get US$106MM IDB Loan to Improve Public Spending
--------------------------------------------------------------
Bolivia will receive a loan for US$106 million from the Inter-
American Development Bank (IDB) to support policy actions that
will improve and strengthen mechanisms for effective, efficient,
and transparent public expenditure. This is the latest in a
series of three programmatic policy-based loans for Bolivia in the
fiscal sector.
The present operation is aimed at improving the quality of the
budgetary process, administration of public expenditure, the
execution and efficiency of public expenditure, and achieving
greater transparency and accountability.
Measures to be carried out by the program include drafting
multiyear budgets in State-owned enterprises and central
government agencies; introducing results-based management in
central government agencies by means of performance agreements;
and the expansion of coverage of fiscal information systems at the
subnational level.
The program will also support the policy to control erroneous
payments in the pension system through cross-referencing of
databases; expand the number of central and subnational government
agencies that have public accountability processes; support
implementation of the transparency policy in public procurement;
and enact legislation to regulate social oversight in accordance
with the nation's Constitution.
The two first two operations were approved by the IDB in 2005 and
2010 for US$15 and US$30 million, respectively. Their
implementation has resulted in significant progress towards more
effective and efficient public expenditure management.
This progress has included the development of a medium-term macro-
fiscal framework; the introduction of results-based public
administration; the development and implementation of fiscal
information management systems in the central government; and the
launch of the public accountability process.
The IDB financing consists of US$84.8 million from the ordinary
capital for a term of 30 years, a six-year grace period, and an
SCF-fixed interest rate; and a US$21.2 million loan from the Fund
for Special Operations, the Bank's concessional financing window,
for a 40-year term and grace period and an interest rate of 0.25
percent.
==========================
C A Y M A N I S L A N D S
==========================
AOI COMMODITIES: Creditors' Proofs of Debt Due Oct. 9
-----------------------------------------------------
The creditors of AOI Commodities Offshore Ltd are required to file
their proofs of debt by Oct. 9, 2013, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on Aug. 21, 2013.
The company's liquidator is:
Intertrust SPV (Cayman) Limited
190 Elgin Avenue, George Town
Grand Cayman KY1-9005
Cayman Islands
c/o Kim Charaman/Jennifer Chailler
Telephone: (345) 943 3100
BLACK RHINO: Creditors' Proofs of Debt Due Sept. 30
---------------------------------------------------
The creditors of Black Rhino Fund, Ltd. are required to file their
proofs of debt by Sept. 30, 2013, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Aug. 15, 2013.
The company's liquidator is:
Ogier
c/o Jo-Anne Maher
Telephone: (345) 815 1762
Facsimile: (345) 949 9877
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
CHESTER MANAGEMENT: Creditors' Proofs of Debt Due Sept. 30
----------------------------------------------------------
The creditors of Chester Management (Cayman) Limited are required
to file their proofs of debt by Sept. 30, 2013, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Aug. 23, 2013.
The company's liquidator is:
Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510 Grand Cayman KY1-1104
Cayman Islands
CHESTER MANAGEMENT: Members' Final Meeting Set for Oct. 1
---------------------------------------------------------
The members of Chester Management (Cayman) Limited will hold their
final meeting on Oct. 1, 2013, at 9:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company commenced liquidation proceedings on Aug. 23, 2013.
The company's liquidator is:
Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510 Grand Cayman KY1-1104
Cayman Islands
CHURCHILL HAVANA: Creditors' Proofs of Debt Due Sept. 30
--------------------------------------------------------
The creditors of Churchill Havana Limited are required to file
their proofs of debt by Sept. 30, 2013, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Aug. 14, 2013.
The company's liquidator is:
Royhaven Secretaries Limited
c/o Andrea Aegerter
Coutts & Co Trustees (Switzerland) Ltd
13, Quai de I'lle
PO Box 5511 1211 Geneva 11
Switzerland
Telephone: +41 22 319 01 76
Facsimile: +41 22 319 01 02
ERENSIA INVESTMENTS: Placed Under Voluntary Wind-Up
---------------------------------------------------
On Aug. 26, 2013, the shareholders of Erensia Investments, Ltd.
resolved to voluntarily wind 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:
Trident Liquidators (Cayman) Ltd
c/o Eva Moore
Trident Trust Company (Cayman) Limited
Telephone: (345) 949 0880
Facsimile: (345) 949 0881
P.O. Box 847, George Town, Grand Cayman KY1-1103
Cayman Islands
EVERBRIGHT ASHMORE: Creditors' Proofs of Debt Due Oct. 2
--------------------------------------------------------
The creditors of Everbright Ashmore Investment Orange (Cayman)
Limited are required to file their proofs of debt by Oct. 2, 2013,
to be included in the company's dividend distribution.
The company commenced wind-up proceedings on Aug. 19, 2013.
The company's liquidator is:
Ogier
c/o Maggie Kwok/Phoebe Chan
Telephone: 852 3656 6005 / 852 3656 6063
Facsimile: (345) 949-9877
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
FALMOUTH FINANCE: Creditors' Proofs of Debt Due Oct. 6
------------------------------------------------------
The creditors of Falmouth Finance Ltd. are required to file their
proofs of debt by Oct. 6, 2013, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Aug. 23, 2013.
The company's liquidator is:
JS De Jager
Cayman Management Ltd.
Harbour Centre, Ground Floor
PO Box 1569
42, North Church Street, George Town
Grand Cayman KY1-1110
Cayman Islands
Telephone: +1 (345) 949 4018
Facsimile: +1 (345) 949 7891
HILL POND: Creditors' Proofs of Debt Due Sept. 30
-------------------------------------------------
The creditors of Hill Pond Fund, Ltd. are required to file their
proofs of debt by Sept. 30, 2013, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Aug. 15, 2013.
The company's liquidator is:
Ogier
c/o Jo-Anne Maher
Telephone: (345) 815 1762
Facsimile: (345) 949 9877
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
ING GOLDMAN: Commences Liquidation Proceedings
----------------------------------------------
On Aug. 26, 2013, the sole shareholder of ING Goldman Sachs
Commodity Portfolio (Cayman), Ltd resolved to voluntarily
liquidate the company's business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Todd R. Modic
Walkers
190 Elgin Avenue, George Town
Grand Cayman KY1-9001
Cayman Islands
Telephone: (345) 914-6386
SEAOIL MARINE: Creditors' Proofs of Debt Due Sept. 30
-----------------------------------------------------
The creditors of Seaoil Marine Services, Inc. are required to file
their proofs of debt by Sept. 30, 2013, to be included in the
company's dividend distribution.
The company commenced wind-up proceedings on Aug. 6, 2013.
The company's liquidator is:
Jane Fleming
Telephone: (345) 945-2187/ (345) 945-2197
PO Box 30464 Grand Cayman KY1-1202
Cayman Islands
SHELF LIFE: Creditors' Proofs of Debt Due Sept. 30
--------------------------------------------------
The creditors of Shelf Life Fund are required to file their proofs
of debt by Sept. 30, 2013, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Aug. 15, 2013.
The company's liquidator is:
Ogier
c/o Jo-Anne Maher
Telephone: (345) 815 1762
Facsimile: (345) 949 9877
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
TIGER GLOBAL II: Placed Under Voluntary Wind-Up
-----------------------------------------------
On Aug. 22, 2013, the sole shareholder of Tiger Global II SPV II,
Ltd resolved to voluntarily wind 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:
Steven Boyd
c/o Campbells Corporate Services Limited
PO Box 268 Willow House, Cricket Square
Grand Cayman KY1-1104
Cayman Islands
Telephone: +1 (345) 949 2648
Facsimile: +1 (345) 949 8613
TIGER GLOBAL SPV I: Placed Under Voluntary Wind-Up
--------------------------------------------------
On Aug. 22, 2013, the sole shareholder of Tiger Global SPV I, Ltd
resolved to voluntarily wind 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:
Steven Boyd
c/o Campbells Corporate Services Limited
PO Box 268 Willow House, Cricket Square
Grand Cayman KY1-1104
Cayman Islands
Telephone: +1 (345) 949 2648
Facsimile: +1 (345) 949 8613
TIGER GLOBAL SPV II: Placed Under Voluntary Wind-Up
---------------------------------------------------
On Aug. 22, 2013, the sole shareholder of Tiger Global SPV II, Ltd
resolved to voluntarily wind 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:
Steven Boyd
c/o Campbells Corporate Services Limited
PO Box 268 Willow House, Cricket Square
Grand Cayman KY1-1104
Cayman Islands
Telephone: +1 (345) 949 2648
Facsimile: +1 (345) 949 8613
UBS PRESTIGE: Creditors' Proofs of Debt Due Oct. 9
--------------------------------------------------
The creditors of UBS Prestige Fund SPC are required to file their
proofs of debt by Oct. 9, 2013, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Aug. 21, 2013.
The company's liquidator is:
Robert Aspinall
c/o Mike Green
Deloitte & Touche
P.O Box 1787 Grand Cayman KY1-1109
Cayman Islands
Telephone: +1 (345) 814 2223
Facsimile: +1 (345) 949 8258
=========
C H I L E
=========
SQM: SVS Accuses Controller and Execs of Breaching Trading Rule
---------------------------------------------------------------
Matt Craze & Eduardo Thomson at Bloomberg News report that Soc.
Quimica & Minera de Chile SA's controller Julio Ponce and other
executives at the fertilizer producer's holding companies are
being accused by Chile's securities regulator of buying shares at
below market prices and selling them back at inflated prices.
Mr. Ponce and the other executives have 20 days to respond to
charges related to trades carried out between the so-called
cascade companies through which he controls SQM, the regulator
known as SVS said in a statement on its website, according to
Bloomberg News.
The executives -- including Aldo Motta, chief executive officer of
Norte Grande SA and Ponce adviser Roberto Guzman -- will face
sanctions if the breaches are verified, the regulator said,
Bloomberg News notes.
Bloomberg News relates that after a yearlong probe, the SVS
identified a succession of trades carried out from 2009 to 2011
between the holding companies and Ponce's closely held SQ
Inversiones SA, the regulator said.
The companies made US$6.4 billion of trades among themselves in
that span, minority shareholder Moneda Asset Management wrote in
an Aug. 2 letter to the regulator, Bloomberg News discloses.
Share Sales
Bloomberg News relates that Mr. Ponce is trying to shore up
collateral on US$1.5 billion of debt after the collapse of the
potash market last month pummeled SQM shares.
Bloomberg News notes that Norte Grande SA and Soc. de Inversiones
Oro Blanco SA, two of the holding companies, disclosed plans last
month to sell new shares in a bid to satisfy holders of debt that
is secured partly by SQM shares.
Norte Grande will call a shareholder vote to sell US$177 million
in new shares, while Oro Blanco plans to sell US$290 million,
according to separate filings sent Aug. 29, Bloomberg News adds.
==================================
D O M I N I C A N R E P U B L I C
==================================
BANCO DE RESERVAS: Fitch Affirms 'B' Foreign & Local Currency IDRs
------------------------------------------------------------------
Fitch Ratings has affirmed Banco de Reservas de la Republica
Dominicana Banco de Reservas de la Republica Dominicana, Banco de
Servicios Multiples y Subsidiarias' (Banreservas) long-term
International Default Ratings (IDRs). The Ratings Outlook is
Stable.
Despite Banservas' weaker financial profile, Fitch affirmed the
bank's Viability Rating (VR) at 'b' given its dominant franchise
and the agency's view that this deterioration will be reversed
within the next year. The Stable Outlooks on Banreservas' long-
term IDRs and national rating are in line with those of the
sovereign.
Key Rating Drivers - IDRs, VR, National Ratings and Subordinated
Notes
Banreservas' IDRs and national ratings reflect the support
provided by its shareholder, the Dominican government. The long-
term IDR is at the support floor.
Despite its ample market share, stable deposit base and adequate
liquidity, Banreservas' viability rating reflects its high and
volatile public sector exposure (8.4x equity at end-June 2013) and
low capital base. Furthermore, weak profitability and asset
quality metrics relative to both domestic and similarly rated
international peers (emerging market commercial banks with a
Viability Rating of 'b-', 'b', or 'b+') also weighs on the bank's
viability rating.
The rating on Banreservas' subordinated notes is one notch below
its VR, reflecting one notch for loss severity, but no notches for
incremental non-performance risk relative to the bank's VR.
The recent disbursement of prior years' income to the government
reduced Banreservas' Fitch Core Capital (FCC) ratio to 17.2% as of
June 30, 2013 from 21.7% at the end of 2012. Fitch views the
bank's FCC ratio as weak relative to domestic and international
peers, given its large public sector exposure and lower reserve
coverage of problem assets. If public sector loans were weighed at
100%, then the bank's FCC ratio would have only been 8.6% at the
end of June 2013.
The bank's equity/assets ratio also declined to 5.5% by the end of
June 2013, which is well below the domestic average of 10.7% and
the international peer median of 9%. However, Fitch expects this
ratio to revert to its average level between 2009 and 2011 of
about 7% in the short-term due to higher earnings retention and a
deceleration of balance sheet growth as public sector loans
mature.
The bank's return on average assets ratio (ROAA) recovered to
1.33% at end-June 2013 from 1% at year-end 2012 due to better
efficiency, a slightly higher NIM and asset growth. Nevertheless,
this remains well below the market average, and banks with a
similar market share in Latin America and the Caribbean. Weaker
asset quality, a still heavy operating cost structure, and a
narrower margin will continue to pressure the bank's profitability
over the medium term.
Asset quality stabilized in the first half of 2013 as overall loan
growth outpaced impaired loan growth and reserves for impaired
loans increased. Nevertheless, the bank's NPLs >90 days/gross
private sector loans ratio of 9.5% (4.8% including public sector)
and reserve coverage of impaired loans of 71.4% continued to
compare unfavorably to both domestic and international peers.
The bank's liquidity was in line with domestic peers. Like most
emerging market banks, Banreservas has a significant negative
liquidity gap for assets and liabilities maturing in less than one
year, although this was covered by the bank's liquid assets at the
end of June 2013. Similar to other domestic banks, about half of
the Banreservas' liquid holdings were held in Dominican public
sector instruments. However, Banreservas' role as a refuge bank
during times of systemic stress supports deposit stability.
As of June 30, 2013, Banreservas was the largest bank out of 15
commercial and multiple service banks, with 28% of total system
assets. The bank is the government's main paying agent and also
holds the largest share of deposits in the system.
Rating Sensitivities - IDRs, VRs, National Ratings and
Subordinated Notes
As the bank's only shareholder is the Dominican government,
changes in the IDRs and national ratings are contingent on
sovereign rating actions.
An unexpected deterioration in asset quality or profitability and
sustained high disbursements of income to the government that
pressures Banreservas' equity/assets ratio below 5.5% could
trigger a downgrade of its viability rating. Even in the event of
a sovereign upgrade, upside potential for Banreservas' Viability
Rating is limited in the medium term given important asset and
liability concentrations and the bank's comparatively weaker asset
quality, profitability and capitalization.
The subordinated debt rating is sensitive to any change in
Banreservas' VR.
Key Rating Drivers - Support and Support Rating Floor
Fitch believes the government's willingness to support Banreservas
should it be required is substantial given its 100% stake in the
bank, the bank's systemic importance and the bank's role as the
government's main paying agent, underpinning its Support Rating
Floor of 'B'. However, the Dominican Republic's speculative-grade
rating limits the sovereign's capacity of support, resulting in a
Support rating of '4'.
Rating Sensitivities - Support and Support Rating Floor
Any changes to the bank's Support Rating and Support Rating Floor
will depend on future sovereign rating actions. Currently, the
outlook on the Dominican Republic's long-term local and foreign
currency IDRs is Stable.
Fitch affirmed Banreservas' ratings as follows:
-- Foreign and local currency IDRs at 'B'; Outlook Stable;
-- Short-term foreign and local currency IDRs at 'B';
-- Viability Rating at 'b';
-- Support Rating at '4';
-- Support Floor at 'B';
-- Long-term subordinated notes at 'B-'
-- National long-term rating at 'AA-(dom)'; Outlook Stable;
-- National short-term rating at 'F1+(dom)'.
===========
M E X I C O
===========
BANCO MERCANTIL: Moody's Changes Outlook to Stable; Keeps Ratings
-----------------------------------------------------------------
Moody's Investors Service affirmed all Banco Mercantil del Norte,
S.A.'s (Banorte) ratings and changed the outlook to stable from
negative. The ratings affirmed were the Baa1 foreign currency
deposit rating, the Baa3 (hyb) long-term subordinated debt and Ba1
(hyb) junior subordinated debt ratings. All the existing short-
term ratings were affirmed. Moody's also affirmed Banco Mercantil
del Norte, S.A (Cayman Islands)'s A3 global foreign currency
senior debt rating. All these ratings have a stable outlook.
List Of Affected Ratings
The following ratings were affirmed:
Banco Mercantil del Norte, S.A.
- Long-term global foreign currency deposits rating of Baa1,
stable outlook
- Short-term global foreign currency deposits rating P-2
- Global foreign currency subordinated debt rating of Baa3 (hyb),
stable outlook
- Global foreign currency junior subordinated debt rating of Ba1
(hyb), stable outlook
Banco Mercantil del Norte, S.A. (Cayman Islands)
- Global foreign currency senior debt rating of A3, stable outlook
Ratings Rationale:
Change Of Outlook To Stable
In changing Banorte's outlook to stable from negative, Moody's
cited the successful $2.5 billion capital raising by its holding
company, Grupo Financiero Banorte, S.A.B.'s (GFNorte, unrated),
which allows the group to fund recent acquisitions and repay debt,
including plans to repay certain Banorte's subordinated debt.
Because Banorte is the largest contributor to the holding's
earnings, GFNorte's financial commitments with acquisitions could
have pressured Banorte's capital position absent the fresh capital
injection.
Moody's noted that part of the proceeds from the shares offering
is being used to repay some perpetual subordinated debt in
Banorte's balance sheet, thus strengthening the quality of the
bank's capital, as it replaces lower-quality Tier 2 instruments
with core capital, while more closely aligning it to that of its
peers.
Affirmation Of Standalone And Deposit Ratings
In affirming the standalone C-/baa2 ratings, Moody's cited
Banorte's strong franchise value supported by important and
growing market shares and recurrent and diversified earnings
power. Following the absorption of IXE Banco, S.A., in May 2013 ,
Banorte now holds an important market share of nearly 13.5% of the
system's deposits, and is now the third largest bank in Mexico by
this measure. GFNorte commands the largest customer base with more
than 26 million clients, and the 3rd largest banking branch
network, which enhance its deposit taking capability and offers
significant opportunities particularly in the consumer banking
segment.
Banorte's A3 deposit rating incorporates two notches of uplift
from the baa2 standalone credit assessment because of Moody's
assessment of a high probability of systemic support from the
Mexican government if a stress situation were to occur. Moody's
assumptions take into account the bank's importance as a deposit-
taker and lender in the Mexican market.
Banorte's Baa1 foreign currency deposit rating is capped by
Mexico's Baa1 foreign currency ceiling for foreign currency
deposits. The A3 foreign currency senior debt rating is consistent
with the bank's A3 local currency deposit rating. The subordinated
and junior subordinated ratings reflect one and two notches of
subordination, respectively, from the bank's baa2 adjusted BCA.
Banorte is headquartered in Mexico City. As of June 30, 2013, the
bank reported MXP760.0 billion in assets (source: Comision
Nacional Bancaria y de Valores).
The principal methodology used in this rating was Global Banks
Methodology published in May 2013.
The date of the last Credit Rating Action on Banorte was on June
17, 2013 when Moody's affirmed Banorte's ratings; outlook remained
negative.
BANCO MERCANTIL: Moody's Affirms Junior Subordinated Debt at Ba1
----------------------------------------------------------------
Moody's de Mexico affirmed all Banco Mercantil del Norte, S.A.'s
(Banorte) ratings and changed the outlook to stable from negative.
The ratings affirmed were the C- (C minus) standalone bank
financial strength rating (BFSR), which maps to a baa2 standalone
baseline credit assessment (BCA), and the A3 long-term global
local currency deposit rating. Moody's also affirmed the bank's
Baa3 long-term subordinated debt and Ba1 junior subordinated debt
ratings. All the existing short-term ratings were affirmed. The
Mexican National Scale ratings were also affirmed. The outlook on
all these ratings is stable.
At the same time, Moody's affirmed with stable outlook the A3 and
Baa1 global local currency issuer ratings of Arrendadora y Factor
Banorte, S.A. and Casa de Bolsa Banorte Ixe, S.A., respectively.
All the existing short-term ratings were affirmed. The Mexican
National Scale ratings of all these related issuers were also
affirmed.
List Of Affected Ratings
The following ratings were affirmed:
Banco Mercantil del Norte, S.A.
- Bank financial strength rating of C-, stable outlook
- Long-term global local currency deposits rating of A3, stable
outlook
- Short-term global local currency deposits rating of Prime-2
- Long-term global local currency subordinated debt rating of
Baa3, stable outlook
- Long-term global local currency subordinated debt program rating
of (P) Baa3
- Long-term global local currency junior subordinated debt rating
of Ba1 (hyb), stable outlook
- Long-term global local currency junior subordinated debt program
rating of (P) Ba1
- Long-term Mexican National Scale deposits rating of Aaa.mx,
stable outlook
- Short-term Mexican National Scale deposits rating of MX-1
- Long-term Mexican National Scale subordinated debt rating of
Aa2.mx, stable outlook
- Long-term Mexican National Scale subordinated debt program
rating of Aa2.mx
- Long-term Mexican National Scale junior subordinated debt rating
of Aa3.mx (hyb), stable outlook
- Long-term Mexican National Scale junior subordinated debt
program rating of Aa3.mx
Arrendadora y Factor Banorte, S.A.
- Long-term global local currency issuer rating of A3, stable
outlook
- Short-term global local currency issuer rating of P-2
- Long-term Mexican National Scale issuer rating of Aaa.mx, stable
outlook
- Short-term Mexican National Scale issuer rating of MX-1
- Long-term global local currency senior debt program rating of
(P) A3
- Short-term global local currency senior debt program rating of
(P) P-2
- Long term Mexican National Scale senior debt rating of Aaa.mx,
stable outlook
- Short term Mexican National Scale senior debt rating of MX-1
Casa de Bolsa Banorte Ixe, S.A. de C.V.
- Long-term global local currency issuer rating of Baa1, stable
outlook
- Short-term global local currency issuer rating of P-2
- Long-term Mexican National Scale issuer rating of Aaa.mx, stable
outlook
- Short-term Mexican National Scale issuer rating of MX-1
Ratings Rationale:
Change Of Outlook To Stable
In changing Banorte's outlook to stable from negative, Moody's
cited the successful $2.5 billion capital raising by its holding
company, Grupo Financiero Banorte, S.A.B.'s (GFNorte, unrated),
which allows the group to fund recent acquisitions and repay debt,
including plans to repay certain Banorte's subordinated debt.
Because Banorte is the largest contributor to the holding's
earnings, GFNorte's financial commitments with acquisitions could
have pressured Banorte's capital position absent the fresh capital
injection.
Moody's noted that part of the proceeds from the shares offering
is being used to repay some perpetual subordinated debt in
Banorte's balance sheet, thus strengthening the quality of the
bank's capital, as it replaces lower-quality Tier 2 instruments
with core capital, while more closely aligning it to that of its
peers.
Affirmation Of Standalone And Deposit Ratings
In affirming the standalone C-/baa2 ratings, Moody's cited
Banorte's strong franchise value supported by important and
growing market shares and recurrent and diversified earnings
power. Following the absorption of IXE Banco, S.A., in May 2013 ,
Banorte now holds an important market share of nearly 13.5% of the
system's deposits, and is now the third largest bank in Mexico by
this measure. GFNorte commands the largest customer base with more
than 26 million clients, and the 3rd largest banking branch
network, which enhance the bank's deposit taking capability and
offers significant opportunities particularly in the consumer
banking segment.
Banorte's A3 deposit rating incorporates two notches of uplift
from the baa2 standalone credit assessment because of Moody's
assessment of a high probability of systemic support from the
Mexican government if a stress situation were to occur. Moody's
assumptions take into account the bank's importance as a deposit-
taker and lender in the Mexican market.
Banorte is headquartered in Mexico City. As of June 30, 2013, the
bank reported MXP760.0 billion in assets (source: Comision
Nacional Bancaria y de Valores).
The principal methodology used in this rating was Global Banks
Methodology published in May 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.
The date of the last Credit Rating Action on Banorte was on June
17, 2013 when Moody's affirmed Banorte's ratings; outlook remained
negative.
The period of time covered in the financial information used to
determine Banorte's rating is between December 31, 2006 and June
30, 2013 (source: Moody's, Issuer's financial statements, CNBV and
Banxico).
The sources and items of information used to determine Banorte's
rating include 2011, 2012 and 2013 interim financial statements
(source: Grupo Financiero Banorte); year-end 2011 and 2012 audited
financial statements (source: Grupo Financiero Banorte, audited by
Deloitte Touche Tohmatsu Limited); financial statements and
information on market position (source: CNBV); regulatory capital
information (source: Banxico); debt offering memorandum (source:
Grupo Financiero Banorte).
GENWORTH SEGUROS: S&P Revises Outlook and Affirms 'BB+' Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Genworth
Seguros de Credito a la Vivienda (GSCV) to stable from negative.
At the same time, S&P affirmed its 'BB+' global scale and 'mxAA-'
national scale financial strength ratings on GSCV.
S&P's financial strength rating on GSCV incorporates its parent's,
Genworth Holdings Inc.'s (BBB-/Stable/A-3), explicit support.
This support comes in the form of a guarantee for a maximum amount
of $260 million. Even if Genworth Holdings were to discontinue
this guarantee, it would continue guaranteeing the potential
liabilities arising from any of GSCV's current policies up to one
day before the policy's term. Still, in S&P's view, as GSCV
grows, the guarantee could become insufficient to support
increased business scale.
The stable outlook on Genworth Financial Inc. and Genworth Holding
Inc. (the guarantor) reflects continued favorable strategic
execution and improved earnings. On Sept. 3, 2013, Genworth
Holdings announced that it completed the sale of its wealth
management business. Net proceeds from the sale totaled
$360 million, which Genworth Holdings will use to repay its senior
notes due June 2014. This action follows the success of Genworth
Holdings' August debt issuance, which it intends to use to redeem
at least a majority of its senior notes due in 2015 and for the
recapitalization plan for its U.S. mortgage insurance operations.
Genworth Holdings reported a total net income of $321 million for
the first six months of 2013 compared with $188 million for the
year-earlier period. Much of the improvement is attributable to
improved performance in its global mortgage insurance division.
S&P expects Genworth Holdings to generate improved earnings for
the entire 2013 than in the prior year, and expect total
consolidated financial leverage to be approximately 30% and fixed-
charge coverage of approximately 3x. S&P expects Genworth
Holdings to maintain a meaningful cash buffer at the holding
companies to prefund fixed-charge coverage needs and for financial
flexibility.
GRUPO CEMENTOS: S&P Affirms 'B' CCR & Revises Outlook to Stable
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' corporate
credit and issue ratings on Grupo Cementos de Chihuahua, S.A.B. de
C.V. (GCC). At the same time, S&P revised the outlook on the
corporate credit rating to stable from positive. The recovery
rating on the company's $260 million notes remains at '3'.
The ratings reflect S&P's assessment of GCC's "aggressive"
financial risk profile and "weak" business risk profile, as S&P's
criteria define these terms. The ratings are constrained by the
company's geographic concentration, limited scale and "less than
adequate" liquidity. These negatives are somewhat offset by GCC's
leading position in regional markets, efficient vertical
integration and conservative financial policy.
During the first half of 2013, GCC's operations were weakened by a
longer-than-expected winter in the U.S., limiting construction
activities in that country and therefore, volume sales of cement
and concrete. U.S. operations generated 62% of the company's
revenues as of June 30, 2013 leading to a deterioration in
consolidated numbers compared to the first half of 2012.
Additionally, cement operations in Mexico were sluggish due to the
government's outlays during the year.
Although S&P do expect GCC to recover somewhat during the second
half of the year, it estimates that economic conditions in Mexico
and the U.S. will constrain volume growth and will continue to
pressure profitability measures. This supports S&P's view that
GCC might achieve a mid-single-digit revenue growth rate and
EBITDA margin below 18%, by year-end 2013. S&P do not believe GCC
will incur additional debt as it expects the company to collect
the bulk of its receivables during the second half of this year
which would allow it to post neutral free operating cash flows.
PROYECTOS ADAMANTINE: Moody's Lowers Ratings on 4 RMBS Tranches
---------------------------------------------------------------
Moody's de Mexico has downgraded four certificates from Mexican
RMBS sponsored by Proyectos Adamantine, S.A. de C.V., SOFOM,
E.N.R. (Proyectos Adamantine) due to Moody's concerns related to
the expected severity of loss on defaulted loans. The underlying
collateral consists of first-lien, fixed-rate mortgage loans
denominated in UDIS and granted primarily to low-income borrowers
in Mexico.
Master Servicer: Proyectos Adamantine, S.A. de C.V., SOFOM,
E.N.R..
Issuer: HSBC Mexico, S.A., Institucion de Banca Multiple, Grupo
Financiero HSBC, Division Fiduciaria, acting solely as trustee.
The complete rating action is as follows:
- MXMACFW 06U Class A, ratings downgraded to C.mx (sf) from Ca.mx
(sf) (Mexican National Scale) and to C (sf) from Ca (sf) (Global
Scale, Local Currency).
- MXMACFW 07U Class A, ratings downgraded to Ca.mx (sf) from
Caa2.mx (sf) (Mexican National Scale) and to Ca (sf) from Caa2
(sf) (Global Scale, Local Currency).
- MXMACFW 07-3U Class A, underlying ratings (reflecting the
intrinsic credit quality of securities absent the financial
guarantee that MBIA Insurance Corporation provides) downgraded to
Ca.mx (sf) from Caa3.mx (sf) (Mexican National Scale) and to Ca
(sf) from Caa3 (sf) (Global Scale, Local Currency).
- MXMACFW 07-5U Class A, underlying ratings (reflecting the
intrinsic credit quality of securities absent the financial
guarantee that MBIA Mexico, S.A. de C.V. provides) downgraded to
C.mx (sf) from Ca.mx (sf) (Mexican National Scale) and to C (sf)
from Ca (sf) (Global Scale, Local Currency).
Ratings Rationale:
The rating action is based mainly on Moody's higher severity of
loss assumption on defaulted loans in the Sofol-sponsored Mexican
RMBS in the low-income housing sector. Moody's is now assuming a
higher severity of loss of 85% for transactions without mortgage
insurance policies (the severity assumption used to monitor the
affected transactions ranged between 67%-69% previously).
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; and
iii. Available market data signaling negative trends for the
severity of loss.
In the case of Sofoles' RMBS transactions with UDI-denominated
loans that do not benefit from mortgage insurance policies as
those involved in the rating action, Moody's believes that the
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,
Moody's is assuming a recovery rate of 15%. Moody's also notes
that these transactions' servicer plans to implement loan
modification programs featuring principal forgiveness, which may
lead to some recoveries in the long-term.
With respect to the mortgage cash flow analysis, quantitative
models and measurements, Moody's considered these aspects:
As of July 2013, delinquencies greater than 90 days, including
outstanding real estate owned (REO), as a percent of the original
pool balance for each of the underlying pools were as follows:
- MXMACFW 06U: 44% after 83 months since closing, versus 45% as of
12 months ago
- MXMACFW 07U: 38% after 78 months since closing, versus 36% as of
12 months ago
- MXMACFW 07-3U: 41% after 74 months since closing, versus 39% as
of 12 months ago
- MXMACFW 07-5U: 44% after 72 months since closing, versus 43% as
of 12 months ago
Moody's projected lifetime cumulative gross defaults in each
transaction is as follows:
- MXMACFW 06U & MXMACFW 06-2U: 43% of original balance, or 74% of
current balance
- MXMACFW 07U & MXMACFW 07-2U: 42% of original balance, or 64% of
current balance
- MXMACFW 07-3U & MXMACFW 07-4U: 45% of original balance, or 67%
of current balance
- MXMACFW 07-5U & MXMACFW 07-6U: 46% of original balance, or 70%
of current balance
After estimating projected lifetime gross default rates as a
percent of the current pool balances including REOs, Moody's
determined the pool expected losses by applying a severity of loss
assumption of 85% on the projected defaulted loan balance. Moody's
updated expected net loss projections are as follows:
- MXMACFW 06U & MXMACFW 06-2U: 63% of current balance
- MXMACFW 07U & MXMACFW 07-2U: 55% of current balance
- MXMACFW 07-3U & MXMACFW 07-4U: 57% of current balance
- MXMACFW 07-5U & MXMACFW 07-6U: 60% of current balance
Moody's then compared these net loss projections with the
estimated lifetime available credit enhancement by certificate
(including any subordination, overcollateralization, and any
remaining excess spread, as a percent of the outstanding pool
balance), which is as follows:
- MXMACFW 06U Class A: less than 0% of current balance, after
considering that the negative excess spread in the trust will
continue to erode its credit enhancement
- MXMACFW 07U Class A: 27% of current balance
- MXMACFW 07-3U Class A: 19% of current balance
- MXMACFW 07-5U Class A: 1% of current balance
With respect to the sensitivity of the ratings, if Moody's were to
instead assume the following cumulative gross defaults as a
percent of the current pool balance, the certificates experience a
one-notch downgrade or upgrade as follows:
- MXMACFW 06U Class A: 62%, (instead of 74%), upgrade to Ca.mx
(sf) / Ca (sf) from C.mx (sf) / C (sf)
- MXMACFW 07U Class A: 60% (instead of 64%), upgrade to Caa3.mx
(sf) / Caa3 (sf) from Ca.mx (sf) / Ca (sf)
- MXMACFW 07-3U Class A: 53% (instead of 67%), upgrade to Caa3.mx
(sf)/ Caa3 (sf) from Ca.mx (sf)/ Ca (sf)
- MXMACFW 07-5U Class A: 64% (instead of 70%), upgrade to Ca.mx
(sf) / Ca (sf) from C.mx (sf) / C (sf)
The methodologies used in these ratings were "Moody's Approach to
Rating RMBS Using the MILAN Framework", published in May 2013 and
"Moody's Approach to Monitoring Residential Mortgage-Backed
Securitizations in Mexico" published in August 2009.
Period of time covered in the financial information used to
determine the rating was September 30, 2006 to July 31, 2013.
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.
===============
X X X X X X X X
===============
* 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.
* * * End of Transmission * * *