TCRLA_Public/130923.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

           Monday, September 23, 2013, Vol. 14, No. 188


                            Headlines




A N T I G U A   &   B A R B U D A

LIAT: Upheaval at The Highest Levels


B R A Z I L

BROOKFIELD INCORPORACOES: Mcap Discloses 4.79% Stake in Company
OGX PETROLEO: Output Limited to Gaviao Gas Field in August
OSX BRASIL: Goldman Becomes Second Biggest Holder


C A Y M A N  I S L A N D S

ARLO IX: Creditors' Proofs of Debt Due Oct. 13
ARLO IX: Members' Final Meeting Set for Oct. 17
AVIATOR MASTER: Creditors' Proofs of Debt Due Oct. 13
AVIATOR OVERSEAS: Creditors' Proofs of Debt Due Oct. 13
CREDIT SUISSE - HDFC: Creditors' Proofs of Debt Due Oct. 13

DUBAI EXECUTIVE: Creditors' Proofs of Debt Due Oct. 13
LONE STAR: Creditors' Proofs of Debt Due Oct. 13
SELIGMAN TECHNOLOGY: Creditors' Proofs of Debt Due Oct. 13
SELIGMAN TECHNOLOGY MASTER: Creditors' Proofs of Debt Due Oct. 13
SPIRITROCK INVESTMENTS: Creditors' Proofs of Debt Due Oct. 13


J A M A I C A

SAGICOR LIFE: Aims to Raise Up to JM$2.5 Billion From Issue
* JAMAICA: Receives EUR7 Million in Grant From European Union


N I C A R A G U A

* NICARAGUA: Gets US$35MM IDB Financing to Improve Health Services


P A N A M A

BANCOLOMBIA PANAMA: Fitch Affirms Viability Rating at 'bb'


S T.  L U C I A

* ST. LUCIA: NWU Expresses Concern About Job Losses


X X X X X X X X

* Moody's: BASEL III Has Narrow Benefits for Developing Countries
* Moody's Looks at Pensions' Credit Risks for Sub-sovereigns
BOND PRICING: For the Week From Sept. 16 to Sept. 20, 2013


                            - - - - -


=================================
A N T I G U A   &   B A R B U D A
=================================


LIAT: Upheaval at The Highest Levels
------------------------------------
Vernon Khelawan at Trinidad and Tobago Newsday reports that
there's much upheaval at the highest levels of Leeward Islands Air
Transport (LIAT) -- the Board and the Executive.

Following on the sudden resignation of Chief Executive Officer
Captain Ian Brunton, comes the news from highly reliable sources
that long time chairman Jean Holder is all set to follow,
according to Trinidad and Tobago Newsday.

The report notes that word is Isaac Solomon, a former St Vincent
public servant, but who now works as a banker will be named to
replace Mr. Holder.  Mr. Solomon is also the current director on
the board representing St Vincent.

The report relates that LIAT's shareholder government's chair St.
Vincent and the Grenadines Prime Minister Dr. Ralph Gonsalves has
high praise for Mr. Solomon describing him as "a very
distinguished former public servant".

But according to some sources, the report relays, the attitude
adopted by Mr. Gonsalves would indicate that the matter of
resignations arose following comments by the St Vincent Prime
Minister.

LIAT had a bad time this past peak travel season as its management
tried to integrate the new ATR aircraft into the system, while
still trying to maintain services with the older Dash-8-300
aircraft, which resulted in hundreds of mishandled passengers,
says the report.

Antigua Observer reported that Mr. Brunton became LIAT's CEO
"during a period of massive sustained losses for the airline -- a
combined amount of almost (Eastern Caribbean) EC US$80 million in
losses from 2010 -- and a deficit of around EC US$344 million by
the end of 2012," the report said.

As reported in the Troubled Company Reporter-Latin America on
Jan. 3, 2012, Antigua Caribarena related that former Antigua
Aviation Minister Robin Yearwood wants to see a merger between
Leeward Islands Air Transport (LIAT) and the Trinidad and Tobago-
owned Caribbean Airlines Limited, as he believes this is the only
way the Antigua-based regional carrier can survive.  Mr.
Yearwood's call came against the background of media reports out
of Port of Spain that suggested CAL's management may be eyeing
expansion into the OECS territories, according to Antigua
Caribarena.

                            About LIAT

Headquartered in V. C. Bird International Airport in Saint George
Parish, Antigua, Leeward Islands Air Transport, known as LIAT,
operates high-frequency interisland scheduled services serving 22
destinations in the Caribbean.  The airline's main base is VC
Bird International Airport, Antigua and Barbuda, with bases at
Grantley Adams International Airport, Barbados and Piarco
International Airport, Trinidad and Tobago.


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


BROOKFIELD INCORPORACOES: Mcap Discloses 4.79% Stake in Company
---------------------------------------------------------------
Brookfield Incorporacoes S.A., citing content of a communication
received from its shareholder Mcap Investimentos Ltda., disclosed
that on September 9, 2013, the total number of Brookfield shares
held by all funds under Mcap's management, reached 4.79% of the
total number of common shares issued by the Company, totaling
27,611,700 shares.

Mcap Investimentos declared that the object of the above-mentioned
investment is to obtain financial income, there being no intention
to alter the Company's ownership or management structure.

Finally, Mcap Investimentos further declares that it has not
entered into any type of contract or agreement regulating the
exercise of voting rights or the purchase and sale of securities
issued by the Company.

Mcap Investimentos is an investment fund manager headquartered at
Avenida Brigadeiro Faria Lima, 1982, conjunto 1201, Sao Paulo -
SP.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 4, 2013, Fitch Ratings has downgraded the long-term foreign
and local currency Issuer Default Ratings (IDRs) of Brookfield
Incorporacoes S.A. (Brookfield Incorporacoes) and its full
subsidiary Brookfield Sao Paulo Empreendimentos Imobiliarios S.A.
(Brookfield SP) to 'B+' from 'BB-'. Fitch has also downgraded the
companies' long-term national ratings to 'A(bra)' from 'A+(bra)'.


OGX PETROLEO: Output Limited to Gaviao Gas Field in August
----------------------------------------------------------
4-traders.com reports that Brazilian independent oil company OGX
Petroleo e Gas Participacoes SA said productions in August was
limited to a single natural gas field because the Tubarao Azul oil
field remains shuttered for repairs.

OGX said it produced 13,300 barrels of oil equivalent per day in
August, according to 4-traders.com.  The report relates that all
of OGX's output came from the inland Gaviao Real natural gas
field, which produced an average of 4.5 million cubic meters of
gas per day.

The report notes that OGX's Tubarao Azul oil field is expected to
restart production by the end of September, when repairs on a
submersible pump are expected to be complete.

Brazilian businessman Eike Batista is working frantically to save
an industrial empire that is headlined by OGX, the entrepreneur's
flagship oil company taken public in 2008, notes the report.
However, the report relates, disappointing production results at
Tubarao Azul created a crisis of confidence that has spilled
across the interlinked group of companies with interests in oil,
natural gas, mining, ports and shipbuilding.

The report relays that earlier Mr. Batista said he would contest a
decision made by OGX's board to exercise a US$1 billion put option
the company holds with him.  OGX issued a call for Mr. Batista to
immediately invest US$100 million in the company, with the
remaining US$900 million of the put to be exercised as the cash is
needed, the report says.

The decision to fight the put caused credit-ratings agency Fitch
Ratings to once again downgrade its rating of the company to
single-C from triple-C, citing the possibility of an "imminent
default," the report adds.

                         About OGX Petroleo

Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participaaoes
S.A. is an independent exploration and production company with
operations in Latin America.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
July 17, 2013, Moody's Investors Service downgraded OGX Petroleo e
Gas Participaaoes S.A.'s Corporate Family Rating to Ca from Caa2
and OGX Austria GmbH's senior unsecured notes ratings to Ca from
Caa2.  The rating outlook remains negative.


OSX BRASIL: Goldman Becomes Second Biggest Holder
-------------------------------------------------
Juan Pablo Spinetto at Bloomberg News reports that Goldman Sachs
Group Inc. became the second-largest shareholder in Eike Batista's
OSX Brasil SA as the shipbuilding unit of the former Brazilian
billionaire faces a possible restructuring of US$500 million in
bonds.

OSX Brasil said Goldman Sachs acquired OSX shares on Sept. 3 to
reach a 5.22 percent stake, according to Bloomberg News.  OSX is
the worst-performing stock in Batista's commodities group this
year with a 92 percent slump, Bloomberg News notes.

Bloomberg News relates that Mr. Batista is selling assets and
restructuring his group of publicly traded commodities and
logistics startups after a series of missed operational and
financial targets eroded investor confidence.  Creditors
representing about 60 percent of OSX bondholders hired law firm
Bingham McCutchen LLP in preparation for the possible
restructuring of the company's 2015 bonds, two people briefed on
the arrangements told Bloomberg News on Sept. 9.

"This is a minority investment that does not involve a change in
the composition of corporate control or a change in the management
structure of the company. . . . Currently, the shareholder does
not target any quantity of the company's shares," the firm said in
a letter accompanying the OSX filing, Bloomberg News relates.

Bloomberg News discloses that OSX fetches 0.06 times book value,
making it the cheapest stock among 264 companies trading in Brazil
with a market value of at least US$100 million, according to data
compiled by Bloomberg.  The entrepreneur created OSX to supply
vessels to sister company OGX Petroleo & Gas Participacoes SA
(OGXP3), which is in talks with creditors in a bid to avoid
bankruptcy protection.

Bloomberg news discloses that OSX rose 1.3 percent to 80 centavos
in Sao Paulo Sept. 20, the highest since Sept. 9.  This year's
slump is the steepest in the Ibovespa small cap index, 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.


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


ARLO IX: Creditors' Proofs of Debt Due Oct. 13
----------------------------------------------
The creditors of Arlo IX Limited are required to file their proofs
of debt by Oct. 13, 2013, to be included in the company's dividend
distribution.

The company commenced liquidation proceedings on Sept. 12, 2013.

The company's liquidator is:

          Mervin Solas
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands


ARLO IX: Members' Final Meeting Set for Oct. 17
-----------------------------------------------
The members of ARLO IX Limited will hold their final meeting on
Oct. 17, 2013, at 1:50 p.m., to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Mervin Solas
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands


AVIATOR MASTER: Creditors' Proofs of Debt Due Oct. 13
-----------------------------------------------------
The creditors of Aviator Master Fund, Ltd. are required to file
their proofs of debt by Oct. 13, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Sept. 11, 2013.

The company's liquidator is:

          Marc Randall
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands


AVIATOR OVERSEAS: Creditors' Proofs of Debt Due Oct. 13
-------------------------------------------------------
The creditors of Aviator Overseas Fund II, Ltd. are required to
file their proofs of debt by Oct. 13, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Sept. 11, 2013.

The company's liquidator is:

          Marc Randall
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands


CREDIT SUISSE - HDFC: Creditors' Proofs of Debt Due Oct. 13
-----------------------------------------------------------
The creditors of Credit Suisse - HDFC Equity India Fund Ltd. are
required to file their proofs of debt by Oct. 13, 2013, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on Sept. 9, 2013.

The company's liquidator is:

          Mervin Solas
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands


DUBAI EXECUTIVE: Creditors' Proofs of Debt Due Oct. 13
------------------------------------------------------
The creditors of Dubai Executive Jets Limited are required to file
their proofs of debt by Oct. 13, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Aug. 29, 2013.

The company's liquidator is:

          Mervin Solas
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands


LONE STAR: Creditors' Proofs of Debt Due Oct. 13
------------------------------------------------
The creditors of Lone Star CBO Funding Ltd are required to file
their proofs of debt by Oct. 13, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Sept. 10, 2013.

The company's liquidator is:

          Mervin Solas
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands


SELIGMAN TECHNOLOGY: Creditors' Proofs of Debt Due Oct. 13
----------------------------------------------------------
The creditors of Seligman Technology 130/30 Fund are required to
file their proofs of debt by Oct. 13, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Sept. 6, 2013.

The company's liquidator is:

          Mervin Solas
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands


SELIGMAN TECHNOLOGY MASTER: Creditors' Proofs of Debt Due Oct. 13
-----------------------------------------------------------------
The creditors of Seligman Technology 130/30 (Master) Fund are
required to file their proofs of debt by Oct. 13, 2013, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on Sept. 6, 2013.

The company's liquidator is:

          Mervin Solas
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands


SPIRITROCK INVESTMENTS: Creditors' Proofs of Debt Due Oct. 13
-------------------------------------------------------------
The creditors of Spiritrock Investments are required to file their
proofs of debt by Oct. 13, 2013, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on Sept. 12, 2013.

The company's liquidator is:

          Mervin Solas
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands


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


SAGICOR LIFE: Aims to Raise Up to JM$2.5 Billion From Issue
-----------------------------------------------------------
Jamaica Observer reports that Sagicor Life Jamaica plans to raise
up to JM$2.5 billion through the issue of shares in its Sagicor
Real Estate X Fund.

The fund, which will acquire units in Sigma Real Estate portfolio
of 12 properties, including three hotels, will also be listed on
the Jamaica Stock Exchange (JSE), according to Jamaica Observer.

The report notes that the Initial Public Offering (IPO), which
opens Sept. 25 and closes on Oct. 18, is offering 200-million
ordinary shares (or 20 per cent of the company) at JM$5 each, of
which 100 million stock units are reserved for subscription by
Sagicor Sigma Unit Holders at JM$4.95 a share.

The report relates that the company may also increase the offer up
to 500 million shares (50 per cent of Sagicor X Fund) should
demand exceed the lower target of JM$1 billion, but Sagicor
Jamaica will hold on to a special share, which carries 51 per cent
of the voting rights in the company, to ensure that the "structure
of the investment is not subverted by investors who may acquire
substantial interest in the company", according to the market
prospectus.

The report relays that the offer follows on a transaction earlier
this year, when Sagicor's unit trust purchased 11 properties from
it, along with sundry-related business assets and liabilities,
valuing JM$9.8 billion.  The unit trust later added a third hotel
to its portfolio when it bought the former Royal DeCameron Fun
Caribbean Resort (formerly Hedonism III) for US$12.5 million and
rebranded it Jewel Paradise Cove Beach Resort and Spa, the report
notes.

The report discloses that, Sagicor X Fund then entered into an
option to purchase up to five billion units from the Sigma Real
Estate.

The proceeds of the IPO will also be used to develop a water park
at the Jewel Runaway Bay Beach and Golf Resort property, and to
position the company for future investment opportunities,
according to a press statement issued by Sagicor Sept. 17, the
report relays.

The report says that already the property portfolio, which
includes a third hotel, Jewel Dunn's River Beach Resort and Spa,
comprises commercial properties such as the R Danny Williams
building, the Sagicor Sigma building in New Kingston, and
industrial parks on Marcus Garvey Drive in Kingston and in
Freeport, Montego Bay.

The report discloses that the hotel's most recent valuation placed
them at a combined market value of US$84 million, while the other
properties were valued at JM$5.3 billion.

"The real estate assets are held in the real estate portfolio of
the Sagicor Sigma Funds Unit Trust, which is one of the ten unit
trust portfolios managed by Sagicor. . . . Shareholder's value
will be created through the generation of net rental income and
capital gains on assets which are currently valued in excess of
$12 billion.  Net income is expected to improve through
operational efficiencies and revenue growth," the report quoted
Rohan Miller, executive vice-president and chief investment
officer at Sagicor, as saying.

The report relays that the Sagicor X Fund will pay dividends to
its shareholders based on inflows from its investment in the Sigma
Real Estate portfolio.

Sagicor Jamaica Chief Executive Officer Richard Byles, in
explaining the value proposition for investors in the X Fund,
noted that against the background of Sagicor's extensive
experience in property development and real estate management
there is tremendous growth potential from existing properties, and
foreign exchange earnings from the Jewel properties, note the
report.

The report relays that the company claims Sagicor X Fund also has
an attractive expected dividend yield of eight per cent per annum
over the next four years, above current Government of Jamaica
four-year bond yield of 7.3 per cent and the average main JSE
market dividend yield of 4.1 per cent.  Subscriptions in the
upcoming IPO should be for multiples of 100 shares subject to a
minimum of 100 shares, the report adds.

                    About Sagicor Life Jamaica

Sagicor Life Jamaica is the leading life insurance group in the
country.  The company commenced operations in 1970 as Life of
Jamaica Limited, the first locally owned life insurance company
and the first life insurance company to be listed on the Jamaica
Stock Exchange (JSE).  Since its inception, Sagicor Life has
gained a solid reputation as an innovator and leader in the
Caribbean life insurance industry.  The company continues to be
the market leader among life and health insurance, fund management
and investments services.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 7, 2013, The Gleaner said that Sagicor Jamaica has got court
approval to restructure its operations under which all companies
within the group will become subsidiaries of a new holding
company.  Under the new scheme the new Sagicor Jamaica Group will
become the parent of insurance company Sagicor Life Jamaica
Limited, securities dealer Sagicor Investments Jamaica Limited,
and commercial bank Sagicor Bank Jamaica Limited, according to The
Gleaner.

Sagicor Jamaica commenced operations in 1970 as Life of Jamaica
Limited.  The insurance company was bailed out by the Jamaican
Government in the 1990s and subsequently sold to a Barbados
operation.  Its name and that of other local subsidiaries were
later changed to align with the brand identity of ultimate parent
Sagicor Financial Corporation.


* JAMAICA: Receives EUR7 Million in Grant From European Union
-------------------------------------------------------------
RJR News reports that Dr. Peter Phillips, Jamaica minister of
finance, on Sept. 17 signed the grant agreement for Jamaica to
receive EUR7 million in budgetary support from the European Union.
The money will assist in the implementation of various development
programs, according to RJR News.

The report relates that Dr. Phillips noted that the event
symbolized the reconsolidation of the relationship between the EU
and Jamaica following the IMF agreement reached in May.


=================
N I C A R A G U A
=================


* NICARAGUA: Gets US$35MM IDB Financing to Improve Health Services
------------------------------------------------------------------
Nicaragua will receive US$35 million in financing from the Inter-
American Development Bank (IDB) for a program to extend health
services to rural communities, particularly focusing on children
under 2 years and women of childbearing age.

The program will strengthen the capacity of the Ministry of Health
to increase health promotion, prevention, and primary care
services in 700 communities in 33 municipalities to reach an
estimated 680,000 people in the Dry Corridor, which has
Nicaragua's highest rates of malnutrition and infant morbidity.
This area consists of the departments of Madriz and Nueva Segovia;
the northern municipalities of Leon, Esteli, Chinandega, and
Managua; and in the west, Matagalpa, Boaco and Chontales.

The program aims to help reduce the rate of chronic infant
malnutrition from 19.6 percent to 14 percent, and increase
vaccination coverage for this group from 67.5 percent to 80
percent.  The program will also reduce the incidence of
hospitalization for diarrhea and pneumonia in infants and increase
the utilization of family planning methods from 75.8 percent to 80
percent.

Half of the IDB financing was extended from the Fund for Special
Operations with a repayment term and grace period 40 years; the
remainder was extended from the Bank's ordinary capital for a term
of 30 years and a grace period of 5.5 years.


============
P A N A M A
============


BANCOLOMBIA PANAMA: Fitch Affirms Viability Rating at 'bb'
----------------------------------------------------------
Fitch Ratings has affirmed Bancolombia Panama's Viability Rating
(VR) at 'bb' and its Issuer Default Rating (IDR) at 'BBB'. The
Rating Outlook is Stable.

Key Rating Drivers:

Issuer Default Rating
Fitch affirmed Bancolombia Panama's (BP) IDRs in line with those
of Bancolombia since it is highly integrated with its parent and
it is considered a core part of its business strategy in Colombia
and Central America. Support from Bancolombia should be
forthcoming if needed and Bancolombia's ability to support BP is
reflected in its ratings; Bancolombia's IDR is 'BBB' with a Stable
Outlook.

Viability Rating
Bancolombia Panama's viability reflects the bank's success in
restoring its capital base to levels that compare better with its
peers in similar ratings thanks to sustained growth, profitability
and capital retention. BP maintained an adequate performance,
efficiency and improved diversification on both sides of the
balance sheet.

Tight cost control and economies of scale foster lean operations
in Panama and El Salvador. However, BP's efficiency ratios have
somewhat declined as margins tightened; nevertheless, they
continue to compare well to its local and regional peers.

BA is a well-positioned bank that runs an efficient and profitable
universal banking business in El Salvador. By acquiring BA, BP
gained in geographical diversification. In addition, it increased
its business lines, revenue sources, product offering and funding
base.

BP was able to maintain a sound performance during the past years
benefiting from a positive operating environment in its core
market and a dominant franchise in El Salvador, even though at
December 2012 show a decrease explained by the Guatemalan loans
sell to its parent. Figures are likely to improve as macroeconomic
conditions stabilize in the Central American region and loans
portfolio increase; in addition, BP managed to restore the amount
of loans by June 2013.

The spike in PDLs observed in 2009-2010 was reversed in 2011 as
PDLs reached a minimum ratio of 2.1% at YE11 as El Salvador's
economy stabilized and the bank's sound risk management policies
helped contain asset deterioration. At December 2012 the ratio
shows deterioration to 3%, explained in part by the 22% decrease
in gross loans after the Guatemalan loans sale. At June 2013 and
explained in part by loans increase, the trend of this ratio is
reversed to 2.4%, which is likely to stabilize into 2013-2014.

BP's funding is better diversified after BA's acquisition and
shows great stability. The bank maintains sound levels of
liquidity between its cash, deposits in banks and investment
portfolio.

BP maintains adequate loan loss reserves that cover PDLs at 115%
at June, 2013. Along with BP's sustained profitability, reserves
constitute an additional cushion against unexpected losses.

BP's tangible equity to tangible assets ratio was depressed after
the acquisition of BA. Sustained profitability (i.e. capital
generation) and sound growth in its core market have contributed
restore capital and dilute the weight of goodwill. Capital has
grown at a rate of 100-150bp per year since 2008, reaching a peak
at December 2012 and stabilized at around 8%, a level that is in
line with that of its regional peers.

Rating Sensitivities

Issuer Default Ratings
BP's IDRs could be upgraded if Bancolombia's IDR is upgraded; the
IDRs would move in line with Bancolombia's rating.

Viability Ratings
The viability rating could be pressured if BP's asset quality
deteriorates, resulting in higher loan loss provision needs and
eroding the loan loss reserve and capital cushion. On the other
hand, the viability rating could improve if BP is able to maintain
its performance while improving its capital and reserve cushion
and better diversify its balance sheet.

Fitch has taken the following rating actions on Bancolombia
Panama:

-- Long-term foreign currency IDR affirmed at 'BBB'; Outlook
   Stable;
-- Short-term foreign currency IDR affirmed at 'F2';
-- Viability rating affirmed at 'bb';
-- Support rating affirmed at '2';
-- Long Term Deposits affirmed at 'BBB';
-- Short Term deposits affirmed at 'F2'.


===============
S T.  L U C I A
===============


* ST. LUCIA: NWU Expresses Concern About Job Losses
---------------------------------------------------
Caribbean360.com reports that since the layoffs and closures of
businesses within the past two years in St. Lucia, the national
employment level has risen to over 25 per cent, with an estimated
17,000 young persons jobless.

The National Workers Union (NWU) has expressed concern about the
number of jobs being lost, according to Caribbean360.com.

The report notes that the Union, the largest on the island, said
it is extremely unfortunate that St. Lucia has failed to grasp
timely opportunities to structure a plan aimed at job security and
economic stabilization.

"Over the last 24 months we at the National Worker Union have been
monitoring the situation in the country, especially since the
financial crisis of 2008 and we are very concern about the
direction we see the country heading as it relates to job losses,
and redundancies.  We have seen the trend via our membership and
there is also evidence at the national level.  So our concern is
related to the future of the country and its workforce, what
exactly will happen to the increasing number of persons on the
breadline," the report quoted St. Lucia Deputy President General
as saying.

The report notes that the Union said stakeholders in the industry
must come together and devise a plan to arrest the crisis before
it gets any worse.

The report relates that Ms. Mayers said the union cannot ignore
the fact that the jobs lost are the ones that have sustained
workers over the years, and many businesses are recording economic
erosion not being able to meet traditional targets.

"When you have such a large number of people in search of jobs it
impacts a number of national institutions.  These people were in
good paying jobs, making contributions to National Insurance,
paying their water and electricity bills on time, in addition to
their mortgage and loan commitments. . . . But if they are on the
breadline that suggests that these contributions are not being
made, and the financial implications of that would ripple across
the country.  So just painting that scenario is troubling and we
need to move urgently to save the country from a certain downward
spiral," Ms. Mayers said, the report notes.

The report relates that since the layoffs and closures of
businesses within the past two years, the national employment
level has risen to over 25 per cent, with an estimated 17,000
young persons jobless.  The International Labour Organization said
the situation is not expected to improve anytime soon given the
global trend, the report relays.

Caribbean360.com discloses that in 2012, an assessment of the
country's labor market revealed that 60 per cent of the labor
market lacked secondary education and as a result, the requisite
skills required for gainful employment.


===============
X X X X X X X X
===============


* Moody's: BASEL III Has Narrow Benefits for Developing Countries
-----------------------------------------------------------------
Developing countries gain less in terms of GDP from the Basel III
implementation than do the developed countries, a new research
report from Moody's Investors Service has found. Modeling the
impact of Basel III reforms on the banking systems of eight
developing countries, Moody's estimates the benefit from Basel III
implementation to approach those in developed countries only in
India.

The report "Limited GDP benefits of Basel III expected for
developing economies" compares the costs against the gains of
Basel III in Brazil, China, India, Mexico, Nigeria, Russia, South
Africa and Ukraine. It explores its net benefit by comparing the
expected loss in GDP growth caused by an increase in bank capital
requirements, against the potential gains of a banking crisis
being averted because of that capital increase.

"We find that there is quite a wide range of different results
from as increase in bank capital as Basel III requires," says
Lucio Vinhas de Souza, Managing Director - Sovereign Chief
Economist. "The majority of the countries in our sample, however,
would experience a very small impact."

Moody's identifies two main reasons for the limited benefit among
the developing countries.

First, the banking systems of the developing countries, as
measured by the share of credit and investment relative to GDP,
have a smaller presence than those in advanced industrial
countries, leading to limited gains from a reduction in losses
should there be a financial crisis, which Basel III implementation
is designed to prevent.

China and South Africa are exceptions to the small share, which
leads them to post larger benefits from higher capital ratios,
says Moody's.

Second, the average level of bank capitalization for the countries
in the study already surpasses Basel III's 8% minimum requirement,
a reflection of national regulatory capital requirements. The
banking systems in five countries in the sample -- Brazil, Mexico,
Nigeria, Russia and Ukraine -- have capital ratios between 15% and
18%, while China, India and South Africa have ones that are much
lower, averaging 11%.

The low levels of capitalization for China, India and South Africa
are another reason why these countries derive relatively larger
net benefits from higher capital ratios.


* Moody's Looks at Pensions' Credit Risks for Sub-sovereigns
------------------------------------------------------------
The underfunding of defined benefit pension plans for public-
sector workers is a credit problem shared by sub-sovereign
governments across developed countries, which includes US and
Australian states, Canadian provinces, German lander, and US local
governments, says Moody's Investors Service in the new report
"Moody's on Pensions: Sub-sovereign Credit Risk." Comparing the
credit risk that pension liabilities pose among sub-sovereigns,
Moody's finds large variations in liabilities and reform not only
by country but also within each country.

Moody's says the most striking outliers in terms of size of
reported underfunded obligations are found in the US. The German
lander, however, stand out because they do not fund long-term
accruals of their obligations and do not report liabilities,
creating uncertainty about the size of the risk. In contrast, the
credit risks of Australian states were reduced with the conversion
of pension plans to defined contribution plans.

The German lander, according to Moody's, make benefit payments
that typically account for 10% or less of current operating
revenues. Budgetary pressure from pension costs will increase
unless more funding is provided or benefits are curtailed, says
Moody's.

In the near term, pension costs among lander are rising but appear
manageable. Lander have a pay-as-you-go pension model, which means
they pay for annual benefits to retirees directly from their
budgets; they are able to cope with pension costs as they do with
any program expenditure.

In contrast to the lander, Canadian provinces achieve good
transparency in their pension plan reporting, typically providing
the assumptions used in calculations of liability. Among the
provinces Quebec (Aa2 stable) and Newfoundland and Labrador (Aa2
stable) face the largest pension risk owing to the size of their
unfunded pension liabilities relative to their revenues.

The median funded status of the provinces has demonstrated a
reasonable level of stability, says Moody's. The stability
suggests the Canadian provinces overall remain committed to making
contributions to pension plans even during times of market
turbulence and budget deficits. A third Canadian province,
Saskatchewan (Aa1 positive), stands out because it closed its
defined-benefit plans and takes a pay-as-you-go approach to
funding them.

Sub-sovereigns in Australia have also mostly reformed their
defined-benefit plans by switching to more predictable, less risky
defined-contribution plans, which means their unfunded liabilities
will be tapering off in coming years.

Australia also adopted more conservative assumptions on discount
rates and asset returns, which will make its data more comparable
to adjusted US public pension data as well as corporate pension
reporting generally, largely eliminating the need for adjustments.

Adjusted data in the United States show large variations for the
50 states in the amount of underfunded pension liabilities
relative to revenues, as indicated by Moody's Adjusted Net Pension
Liability (ANPL) measure, which the rating agency introduced in
April.

US state ratios of ANPL-to-revenues varied widely in fiscal 2011,
ranging from Nebraska (no general obligation debt rating) at 6.8%
to Illinois (A3 negative), which has an ANPL-to-revenue ratio of
241%.

The structure and magnitude of pension obligations also vary
widely across the US local governments. The extent of the pension
burden for the local governments most hindered by pensions is much
heavier than it is for the pension-challenged state governments,
because the local governments have more labor-intensive operations
as well as less financial flexibility with which to combat the
problem.


BOND PRICING: For the Week From Sept. 16 to Sept. 20, 2013
----------------------------------------------------------

Issuer                       Coupon   Maturity   Currency   Price
------                       ------   --------   --------   -----

Aguas Andinas SA               4.15    12/1/2026    CLP      72.24

Almendral
Telecomunicaciones SA          3.5     12/15/2014   CLP      33.15
Argentina Bocon                2        3/15/2024   ARS      22.24
Argentina Bocon                2        1/3/2016    ARS       8.18
Argentina Bocon                2        3/15/2014   ARS       3.56
Argentina Boden Bonds          2        9/30/2014   ARS       8.69
Argentina Bogar Bonds          2        2/4/2018    ARS      15.69
Argentina Bonar Bonds         20.6026   1/30/2014   ARS      11.17
Argentine Government
Int'l Bond                     8.28    12/31/2033   USD      61.75
Argentine Government
Int'l Bond                     7.82    12/31/2033   EUR      58.5
Argentine Government
Int'l Bond                     7.82    12/31/2033   EUR      58
Argentine Government
Int'l Bond                     8.28    12/31/2033   USD      61.25
Argentine Government
Int'l Bond                     1.18    12/31/2038   ARS       5.88
Argentine Government
Int'l Bond                     8.28    12/31/2033   USD      61.25
Argentine Government
Int'l Bond                     8.28    12/31/2033   USD      61.88
Argentine Government
Int'l Bond                     7.82    12/31/2033   EUR      45
Argentine Government
Int'l Bond                     4.33    12/31/2033   JPY      30
Argentine Government
Int'l Bond                     4.33    12/31/2033   JPY      30
Argentine Government
Int'l Bond                     0.45    12/31/2038   JPY       8
BCP Finance Bank Ltd           5.31    12/10/2023   EUR      66
BCP Finance Bank Ltd           5.01     3/31/2024   EUR      63.13
BCP Finance Co Ltd             5.543                EUR      37.63
BCP Finance Co Ltd             4.239                EUR      31.5
BES Finance Ltd                5.58                 EUR      64
BES Finance Ltd                4.5                  EUR      56.58
BES Finance Ltd                3.058                EUR      73.63
Banco BPI SA/Cayman Islands    4.15    11/14/2035   EUR      45.63
Banco BVA SA                   9.125    2/7/2014    USD      10.15
Banco Bonsucesso SA            9.25    11/3/2020    USD      75.5
Banco Finantia
International Ltd              2.475    7/26/2017   EUR      44.05
Banco Hipotecario SA           3.95     8/14/2017   USD      68.88
Banco Macro SA                 9.75    12/18/2036   USD      77
Banco Macro SA                 9.75    12/18/2036   USD      75
Banco Macro SA                 9.75    12/18/2036   USD      72.75
Banif Finance Ltd              1.591                EUR      44
Bank Austria Creditanstalt
Finance Cayman Ltd             1.614                EUR      56.69
Bank Austria Creditanstalt
Finance Cayman Ltd 2           1.838                EUR      56.12
Bolivarian Republic
of Venezuela                   7        3/31/2038   USD      69.9
Caixa Geral De
Depositos Finance              1.022                EUR      30.25
Capex SA                      10        3/10/2018   USD      73
Capex SA                      10        3/10/2018   USD      72.25

China Forestry
Holdings Co Ltd               10.25    11/17/2015   USD      32.88

China Forestry
Holdings Co Ltd               10.25    11/17/2015   USD      32.88
Cia Cervecerias Unidas SA      4       12/1/2024    CLP      59.17
Cia Energetica de Sao Paulo    9.75     1/15/2015   BRL      65.85

Cia Latinoamericana de
Infraestructura &
Servicios SA                   9.5     12/15/2016   USD      64

Cia Sud Americana
de Vapores SA                  6.4     10/1/2022    CLP      70.48
Transer SA                     9.75     8/15/2021   USD      51
Transer SA                     8.875   12/15/2016   USD      55.5
Transer SA                     9.75     8/15/2021   USD      50.75

City of Buenos Aires
Argentina                      3.98     3/15/2018   USD      74.75
ERB Hellas Cayman Islands Ltd  1.825    6/8/2017    EUR      56.53
ERB Hellas Cayman Islands Ltd  9        3/8/2019    EUR      39.75
ESFG International Ltd         5.753                EUR      51.38

Empresa Distribuidora
Y Comercializadora Norte       9.75     10/25/2022  USD      52

Empresa Distribuidora
Y Comercializadora Norte      10.5      10/9/2017   USD      53

Empresa Distribuidora
Y Comercializadora Norte       9.75     10/25/2022  USD      51.13

Formosa Province
of Argentina                   5        2/27/2022   USD      66

Gol Finance                    8.75                 USD      64
Gol Finance                    8.75                 USD      61
Hidili Industry
International Development
Ltd                            8.625    11/4/2015   USD      75

Hidili Industry
International Development
Ltd                            8.625    11/4/2015   USD      75.25

MetroGas SA                    8.875   12/31/2018   USD      67.25
MetroGas SA                    8.875   12/31/2018   USD      63.88

Newland International
Properties Corp                9.5      7/3/2017    USD      73.25

Petroleos de Venezuela SA      5.375    4/12/2027   USD      63
Petroleos de Venezuela SA      5.5      4/12/2037   USD      60.95

Provincia de Buenos Aires/
Argentina                      9.375    9/14/2018   USD      75.64

Provincia de Buenos Aires/
Argentina                      9.625    4/18/2028   USD      65.3

Provincia de Buenos Aires/
Argentina                      9.375    9/14/2018   USD      75.88

Provincia de Buenos Aires/
Argentina                      9.625    4/18/2028   USD      65.25

Provincia del Chaco            4        12/4/2026   USD      29.13
Provincia del Chaco            4        11/4/2023   USD      58
Puerto Rico Conservation       6.5       4/1/2016   USD      55

Renhe Commercial
Holdings Co Ltd               13        3/10/2016   USD      62.75

Renhe Commercial
Holdings Co Ltd              11.75      5/18/2015   USD      67.38
Renhe Commercial
Holdings Co Ltd              13         3/10/2016   USD      60.13

Renhe Commercial
Holdings Co Ltd              11.75      5/18/2015   USD      67.38
SMU SA                        7.75       2/8/2020   USD      63.75
SMU SA                        7.75       2/8/2020   USD      62.81
Sifco SA                     11.5        6/6/2016   USD      47.13

Talca Chillan Sociedad
Concesionaria SA              2.75     12/15/2019   CLP      61.14

Venezuela Government
International Bond            6     12/9/2020       USD       76

Venezuela Government
International Bond            7     3/31/2038       USD       71

Virgolino de Oliveira
Finance Ltd                  10.5   1/28/2018       USD
75.63

Virgolino de Oliveira
Finance Ltd                  11.75   2/9/2022       USD
74.53

Virgolino de Oliveira
Finance Ltd                  10.5   1/28/2018       USD       75.5

Virgolino de Oliveira
Finance Ltd                  11.75   2/9/2022       USD
73.52

                            ***********


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 * * *