/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/131001.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 Tuesday, October 1, 2013, Vol. 14, No. 194 Headlines B A R B A D O S SAGICOR LIFE: S&P Keeps 'BB+' Rating on CreditWatch Negative B E L I Z E DISCOVERY EXPEDITIONS: Bob Garcia Appointed as Receiver B R A Z I L OGX PETROLEO: Planning to Miss $44.5 Million Bond Payment C A Y M A N I S L A N D S ALLEGRO OPTHALMICS: Creditors' Proofs of Debt Due Oct. 8 ANDESCORP INVESTMENTS: Creditors' Proofs of Debt Due Oct. 9 BAITELL CORPORATION: Shareholders Receive Wind-Up Report CARLYLE HIGH: Creditors' Proofs of Debt Due Oct. 23 COSIMO (GP): Creditors' Proofs of Debt Due Oct. 23 DELAWARE STREET: Creditors' Proofs of Debt Due Oct. 23 GK FORTUNE: Creditors' Proofs of Debt Due Oct. 23 INVESTCORP CAPITAL: Shareholders' Final Meeting Set for Dec. 3 INVESTCORP FINANCE: Shareholders' Final Meeting Set for Dec. 3 INVESTCORP PLANNING: Shareholders' Final Meeting Set for Dec. 3 INVESTCORP REAL: Shareholders' Final Meeting Set for Dec. 3 STRAUS CHINA: Creditors' Proofs of Debt Due Oct. 15 C O L O M B I A PACIFIC RUBIALES: To Purchase Petrominerales For US$907 Million D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: Violates Trade Pact Provisions, U.S. Says G U A T E M A L A BANCO DE DESARROLLO: Fitch Affirms ST Foreign Currency IDR at 'B' BANCO G&T: Fitch Affirms Short-Term IDR at 'B' BANCO INDUSTRIAL: Fitch Affirms Short-Term IDR at 'B' J A M A I C A AUBURN COURT LIMITED: Building Up for Sale LIME: To Cut Rate For Landline to Mobile Calls by Almost 8% NATIONAL COMMERCIAL: S&P Raises Issuer Credit Rating to 'B- * JAMAICA: JSDA Says Government Owes Financial Companies JM$16Bil. M E X I C O CREDITO REAL: S&P Assigns 'BB' Rating to $300MM 5-Yr. Sr. Notes SU CASITA: S&P Lowers Rating on Subordinated Class B Notes to 'D' P E R U GRUPO ACP: Unveils Results of Consent Solicitation for Waivers T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Clears Debts to Jamaican Agencies X X X X X X X X X Large Companies With Insolvent Balance Sheets - - - - - ================ B A R B A D O S ================ SAGICOR LIFE: S&P Keeps 'BB+' Rating on CreditWatch Negative ------------------------------------------------------------ Standard & Poor's Ratings Services said that it's keeping its 'BB+' financial strength and counterparty credit ratings on Sagicor Life Inc. and 'BB-' issue-level ratings on Sagicor Finance Ltd. on CreditWatch with negative implications following the September 24 upgrade of Jamaica to 'B-/B' from 'CCC+/C'. "In our view, despite the upgrade, Sagicor's current risk exposure (investment and business portfolio) to Caribbean sovereigns that we rate below 'BB+' limit the rating on the company," said Standard & Poor's credit analyst Jose Perez-Gorozpe. Moreover, S&P rates Barbados, the country where the company is headquartered, at BB+/Negative/B. =========== B E L I Z E =========== DISCOVERY EXPEDITIONS: Bob Garcia Appointed as Receiver ------------------------------------------------------- 7newsbelize.com reports David Gegg's Discovery Expeditions has gone bankrupt. The report relates that Bob Garcia was appointed as receiver on September 20. David Gegg blazed into the public spotlight in December of 2012, when the Department of Sales Tax issued a committal warrant for him because he had tax arrears of over three hundred thousand dollars, according to the report. The report notes that Mr. Gegg paid US$50,000 and managed to avoid being committed to jail. But Mr. Gegg's accountant Sheffield Eck told the court that he had advised Mr. Gegg to file for bankruptcy to clear up his debts because the profits from his two companies are less than what is reported due to unbudgeted and unforeseen expenses, the report notes. The report discloses that that other company is Cruise Solutions Limited -- which remains in operation. =========== B R A Z I L =========== OGX PETROLEO: Planning to Miss $44.5 Million Bond Payment --------------------------------------------------------- Cristiane Lucchesi at Bloomberg News, citing two unnamed sources, reports that Eike Batista's decision to postpone payments on local bonds issued by his Brazilian oil producer OGX Petroleo e Gas Participacoes SA means the company doesn't plan to pay an Oct. 1 coupon on dollar debt. OGX Austria unit, which holds all of the BRL2.1 billion (US$932 million) in local notes, agreed to postpone a Sept. 25 payment for an undisclosed amount until March 25, Rio de Janeiro-based OGX said in a regulatory filing, according to Bloomberg News. The sources, Bloomberg News notes, said non-payment of the securities, sold to the offshore unit as a way of avoiding taxes on international payments, means OGX won't pay a $44.5 million dollar debt coupon. Bloomberg News discloses that the decision not to pay the coupon on $1.06 billion of dollar notes due 2022 moves Batista's flagship company closer to Latin America's largest corporate default on record. The former billionaire is seeking to renegotiate debt and keep OGX afloat after some of the offshore deposits he had valued at US$1 trillion turned out to be duds, triggering a selloff that wiped out about US$30 billion of his personal fortune, Bloomberg News relays. The agreement with OGX Austria avoids a local bond default, OGX said in the filing, notes Bloomberg News. Cash Position Bloomberg News says planner Corretora de Valores SA, the fiduciary agent of local securities linked to the international bonds, said it was informed that local bondholders approved a new flow of payments for the BRL2.1 billion in securities and decided not to ask for a early redemption of the debt. As of June 30, says the report, OGX had BRL722 million in cash and equivalents and BRL8.7 billion in total debt, including $2.6 billion of notes due 2018. A default of the US$3.6 billion international bonds would be the region's biggest corporate default, according to data compiled by Moody's Investors Service. Bloomberg News discloses that OGX's C ratings reflect imminent default given its tight liquidity position and the need for capital expenditures to increase production and cash flow, Fitch Ratings said after downgrading OGX from CCC. One of the source said that the company also has about BRL500 million in debt with banks. Debt Talks According to Bloomberg News, OGX is in talks with bondholders to convert debt to equity and get at least US$250 million in fresh capital. The talks have been complicated because OGX is losing money and needs money to test production at its most promising field, Tubarao Martelo, says the report. Bloomberg News notes that creditors of Batista's shipbuilder OSX Brasil SA (OSXB3) hired law firm Bingham McCutchen LLP in preparation for the possible restructuring of US$500 million in bonds. That replicates a decision by OGX bondholders, which last month hired Rothschild to advise on a restructuring, a person with knowledge of the agreement said, Bloomberg News discloses. Bloomberg News adds that the oil producer's US$2.56 billion of debt due 2018 has tumbled 3.3 cents to 17 cents on the dollar since Sept. 20, when OGX announced the departure of Chief Financial Officer Roberto Monteiro. Four days later, notes the report, the company hired Lazard Ltd. (LAZ) to work alongside advisers including Blackstone Group LP (BX) in the talks. 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. ========================== C A Y M A N I S L A N D S ========================== ALLEGRO OPTHALMICS: Creditors' Proofs of Debt Due Oct. 8 -------------------------------------------------------- The creditors of Allegro Opthalmics International are required to file their proofs of debt by Oct. 8, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 30, 2013. The company's liquidator is: Mark D. Kirshbaum 200 Shasta Irvine CA 92612-2223 ANDESCORP INVESTMENTS: Creditors' Proofs of Debt Due Oct. 9 ----------------------------------------------------------- The creditors of Andescorp Investments Limited are required to file their proofs of debt by Oct. 9, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 13, 2013. The company's liquidator is: Buchanan Limited c/o Allison Kelly/Ingrid McIntosh Telephone: (345) 949 0355 Facsimile: (345) 949 0360 P.O. Box 1170 George Town Grand Cayman Cayman Islands KY1-1102 BAITELL CORPORATION: Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Baitell Corporation received on Sept. 30, 2013, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: MBT Trustees Ltd. Telephone: 945 8859 Facsimile: 949 9793/4 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands CARLYLE HIGH: Creditors' Proofs of Debt Due Oct. 23 --------------------------------------------------- The creditors of Carlyle High Yield Partners VI, Ltd. are required to file their proofs of debt by Oct. 23, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 13, 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 COSIMO (GP): Creditors' Proofs of Debt Due Oct. 23 -------------------------------------------------- The creditors of Cosimo (GP) Limited are required to file their proofs of debt by Oct. 23, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 5, 2013. The company's liquidator is: Matthew Wright c/o Omar Grant Telephone: (345) 949 7576 Facsimile: (345) 949 8295 P.O. Box 897 Windward 1 Regatta Office Park Grand Cayman KY1-1103 Cayman Islands DELAWARE STREET: Creditors' Proofs of Debt Due Oct. 23 ------------------------------------------------------ The creditors of Delaware Street Capital Offshore, Ltd are required to file their proofs of debt by Oct. 23, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 12, 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 GK FORTUNE: Creditors' Proofs of Debt Due Oct. 23 ------------------------------------------------- The creditors of GK Fortune Holdings Inc. are required to file their proofs of debt by Oct. 23, 2013, to be included in the company's dividend distribution. The company commenced liquidation proceedings on Sept. 13, 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 INVESTCORP CAPITAL: Shareholders' Final Meeting Set for Dec. 3 -------------------------------------------------------------- The shareholders of Investcorp Real Estate Debt Capital Ltd. will hold their final meeting on Dec. 3, 2013, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Westport Services Ltd. c/o Bonnie Willkom Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands INVESTCORP FINANCE: Shareholders' Final Meeting Set for Dec. 3 -------------------------------------------------------------- The shareholders of Investcorp Real Estate Debt Finance Ltd. will hold their final meeting on Dec. 3, 2013, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Westport Services Ltd. c/o Bonnie Willkom Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands INVESTCORP PLANNING: Shareholders' Final Meeting Set for Dec. 3 --------------------------------------------------------------- The shareholders of Investcorp Real Estate Debt Planning Ltd will hold their final meeting on Dec. 3, 2013, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Westport Services Ltd. c/o Bonnie Willkom Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands INVESTCORP REAL: Shareholders' Final Meeting Set for Dec. 3 ----------------------------------------------------------- The shareholders of Investcorp Real Estate Debt Acquisition Ltd. will hold their final meeting on Dec. 3, 2013, at 9:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Westport Services Ltd. c/o Bonnie Willkom Telephone: (345) 949 5122 Facsimile: (345) 949 7920 P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands STRAUS CHINA: Creditors' Proofs of Debt Due Oct. 15 --------------------------------------------------- The creditors of Straus China Offshore Fund, Ltd are required to file their proofs of debt by Oct. 15, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 10, 2013. The company's liquidator is: Ogier c/o Jacqueline Haynes Telephone: (345) 815 1759 Facsimile: (345) 949 9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands =============== C O L O M B I A =============== PACIFIC RUBIALES: To Purchase Petrominerales For US$907 Million --------------------------------------------------------------- Elisabeth Behrmann and Rodrigo Orihuela at Bloomberg News report that Pacific Rubiales Energy Corp. agreed to buy Canada's Petrominerales Ltd. for C$935 million (US$907 million) to add oil production and pipeline stakes in Colombia. Petrominerales shareholders will receive C$11 a share in cash and one share in a newly formed exploration and production company, Bogota-based Pacific Rubiales said in a statement obtained by Bloomberg News. That's 42 percent more than the Calgary-based company's last traded price of C$7.74, Bloomberg News relates. Bloomberg News says Pacific Rubiales made at least 10 acquisitions of companies and oil block stakes in Colombia and abroad over the past two years. Buying Petrominerales gives Pacific access to low-density crude, which is cheaper to transport than the heavy crude that makes up the bulk of its reserves, the report added. Bloomberg News discloses that Mr. Pantin said Petrominerales' interests in two pipelines in Colombia were "highly strategic to the company's plans to increase its heavy oil production in the country." The total value of the deal, including net debt of C$640 million, is about C$1.6 billion, Petrominerales said, notes Bloomberg News. It needs regulatory approval and will be financed with a US$1.3 billion bank loan, plus cash, according to the report. Bank of America Merrill Lynch advised Pacific Rubiales. TD Securities Inc. advised Petrominerales. Bloomberg News adds that Pacific Rubiales expects to pay some of the debt by spinning-off or selling all or part of the pipeline stakes, which it values at as much as C$400 million. Pacific Rubiales, a Canadian-based company and producer of natural gas and heavy crude oil, owns Meta Petroleum Corp., the Colombian entity that operates the Rubiales/ Piriri and Quifa oil fields in the Llanos Basin in association with Ecopetrol, S.A.; and Pacific Stratus Energy Colombia Corp., which operates the wholly-owned La Creciente gas field in the northern part of Colombia and other light and medium oil fields. * * * As reported in the Troubled Company Reporter-Latin America on March 19, 2013, Fitch Ratings said ti expects to assign a 'BB+' rating to Pacific Rubiales Energy Corp.'s proposed debt issuance of up to USD1 billion due 2023. Proceeds will be partially used to refinance revolving credit facilities and extend its debt profile. Additionally, proceeds will be used to strengthen the company's liquidity position with an improvement of its on-hand cash position. =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: Violates Trade Pact Provisions, U.S. Says --------------------------------------------------------------- Dominican Today, citing Associated Press, reports that the United States accused the Dominican Republic of violating protects workers under the Cafta-Dr free trade agreement, by allowing the trafficking, forced labor and the use of children in its sugarcane fields. The allegations figure in a report disclosed by Labor Secretary Thomas Perez, drafted after receiving a complaint in December 2011, on the Caribbean nation's working conditions, according to Dominican Today. The report notes that in addition to the report which includes 11 recommendations to Dominican authorities, Mr. Perez announced a donation of US$10.0 million to reduce child labor and improve working conditions. The report relates that Mr. Perez said United States will assess the implementation of its recommendations in six to 12 months. The United States signed the Cafta-DR with the Dominican Republic, Costa Rica, El Salvador, Guatemala, Honduras and Nicaragua in 2004, notes the report. ================== G U A T E M A L A ================== BANCO DE DESARROLLO: Fitch Affirms ST Foreign Currency IDR at 'B' ----------------------------------------------------------------- Fitch Ratings has completed a peer review of Guatemala's three largest banks: Banco Industrial, S.A. (Industrial), Banco G&T Continental S.A. (G&TC) and Banco de Desarrollo Rural, S.A. Rating Action and Rationale Fitch has affirmed all the ratings of the largest Guatemalan banks as their intrinsic creditworthiness and relativities among the peer remain unchanged. In addition, Fitch has affirmed the issuances of Industrial Subordinated Trust (ISbT), and Industrial Senior Trust (ISnT), which are Industrial's special vehicles for these issuances. Guatemala's largest banks are mostly defined as banks with assets between USD5 billion and USD9 billion dollars, operating locally with a network of service points covering the entire country. Two of these banks (Industrial and G&TC) are part of regional financial groups with operations in other Central American countries. Industrial is the largest Guatemalan bank, with a corporate orientation strategy which stands out locally due to its dominant market position. The bank's strengths include its presence in the international markets, which benefits its diversification and length of funding base. However, its corporate orientation results in a moderate profitability and capitalization. G&TC and Industrial share corporate orientation in their business strategy, as well as the good asset quality and moderate risk appetite, but they have minor differences in capitalization (higher in G&TC) and profitability (higher in Industrial). In Fitch's opinion, G&TC and Industrial have a similar risk profile, which is reflected in the shared national and international ratings. In addition, both banks have high exposures to Guatemalan government bonds (currently rated 'BB+' with a Negative Outlook by Fitch) which constrain the IDRs and VR's upside potential up to the sovereign's rating. Banrural is mainly oriented to the retail sector, and characterized by its relatively high and long standing profitability. The high profitability, coupled with its relatively moderate dividend distribution, has allowed it to lead the peer reviewed banks in capitalization. These factors, together with its good credit quality, are reflected in international and national ratings above Industrial's and G&TC's. However, the important dependence that this bank has in its funding to the Guatemalan sovereign limits its international ratings to that of the sovereign. Banrural's Key Rating Drivers - IDRs, VR AND NATIONAL RATINGS Banrural's IDRs and VR reflect its historically high profitability and good capitalization, which compare positively with its main local peers. Banrural's ratings also reflect the bank's good credit quality and ample depository base. The ratings also consider the bank's moderate concentrations in public sector funds and the limited revenue diversification, given its main target markets (micro, and small enterprises). The support rating of '3' reflects Fitch's opinion that the bank maintains a moderate probability of support from the state, given its systemic importance in the banking system. Banrural's national ratings were affirmed and its Outlook remains Stable as the bank's relative strength in the local market remains unchanged. G&TC'S Key Rating Drivers - IDRs, VR AND NATIONAL RATINGS G&TC's IDRs and VR are driven by its sound niche position and franchise, good asset quality and efficiency, ample deposits base and good liquidity. G&TC's ratings are tempered by its moderate capitalization and profitability, high concentration on largest debtors and related-party lending, as well as by the relatively high exposure of its investment portfolio in the local sovereign. The support rating of '3' reflects Fitch's opinion that the bank maintains a moderate probability of support from the state, given its systemic importance in the banking system. G&TC's national ratings were affirmed and its Outlook remains Stable as the bank's relative strength in the local market remains unchanged. Industrial's Key Rating Drivers - IDRs, VR AND NATIONAL RATINGS Industrial's IDRs are driven by its strong national franchise, sound asset quality, good efficiency, ample deposits base, and sound liquidity, which, in turn, are reflected in the bank's VR. Industrial's ratings are constrained by its modest capitalization, moderate profitability, and relatively high loan portfolio concentrations. The support rating of '3' reflects Fitch's opinion that the bank maintains a moderate probability of support from the state, given its systemic importance in the banking system. Industrial's national ratings were affirmed and its Outlook remains Stable as the bank's relative strength in the local market remains unchanged. ISnT and ISbT Key Rating Drivers ISnT's rating is in line with Industrial's IDR reflecting that the senior unsecured obligations rank equally to BI's unsecured and unsubordinated obligations. ISbT is one notch below Industrial's IDR reflecting the subordinated status, ranking junior to all Industrial's present and future senior indebtedness, pari passu with all other unsecured subordinated debt and senior to BI's capital and tier I hybrid securities. Banrural's Rating Sensitivities - IDRs, VR AND NATIONAL RATINGS A downgrade of Guatemala's sovereign ratings will result in a downgrade of Banrural's IDRs. On the other hand, if the sovereign ratings are eventually affirmed at 'BB+' and the Outlook revised to Stable from Negative, it is highly likely that Banrural's Rating Outlook would be revised accordingly. Banrural's national ratings would not be affected should Guatemala's sovereign be downgraded. Industrial and G&TC'S Rating Sensitivities - IDRs, VR and National Ratings Industrial and G&TC's IDR and VR upside potential is considered limited by Fitch, should Guatemala's Negative Outlook eventually result in a sovereign downgrade, considering its high exposure to the sovereign through its securities portfolio. On the other hand, a severe asset-quality deterioration, or a material decline in the bank's profitability, that affects capitalization could pressure the ratings downward. ISnT and ISbT'S Rating Sensitivities - IDR ISnT and ISbT's ratings downgrade potential will be derived from changes in the same direction in Industrial's IDR. Fitch has affirmed the following ratings for Banrural: -- Long-term foreign currency IDR at 'BB+'; Outlook Negative; -- Short-term foreign currency IDR at 'B'; -- Long-term local currency IDR at 'BB+'; Outlook Negative; -- Short-term local currency IDR at 'B'; -- Viability rating at 'bb+'; -- Support at '3'; -- Support Rating Floor at 'BB-'; -- National long -term rating at 'AA+(gtm)'; Outlook Stable; -- National scale short-term affirmed at 'F1+(gtm)'. Fitch has affirmed the following ratings for G&TC: -- Long-term IDR at 'BB'; Outlook Stable; -- Short-term IDR at 'B'; -- Local-currency long-term IDR at 'BB'; Outlook Stable; -- Local-currency short-term IDR at 'B'; -- Viability Rating at 'bb'; -- Support at '3'; -- Support Rating Floor at 'BB-'; -- National scale long-term rating at 'AA-(gtm)'; Outlook Stable; -- National scale short-term rating at 'F1+(gtm)'. Fitch has affirmed the following ratings for Industrial: -- Long-term IDR at 'BB'; Outlook Stable; -- Short-term IDR at 'B'; -- Local-currency long-term IDR at 'BB'; Outlook Stable; -- Local-currency short-term IDR at 'B'; -- Viability Rating at 'bb'; -- Support at '3'; -- Subordinated Tier I Capital Notes debt at 'B-'; -- Support Rating Floor at 'BB-'; -- National scale long-term rating at 'AA-(gtm)'; Outlook Stable; -- National scale short-term rating at 'F1+(gtm)'. Fitch also affirmed the following ratings: -- Industrial Subordinated Trust at 'BB-'; -- Industrial Senior Trust at 'BB'. BANCO G&T: Fitch Affirms Short-Term IDR at 'B' ---------------------------------------------- Fitch Ratings has completed a peer review of Guatemala's three largest banks: Banco Industrial, S.A. (Industrial), Banco G&T Continental S.A. (G&TC) and Banco de Desarrollo Rural, S.A. Rating Action and Rationale Fitch has affirmed all the ratings of the largest Guatemalan banks as their intrinsic creditworthiness and relativities among the peer remain unchanged. In addition, Fitch has affirmed the issuances of Industrial Subordinated Trust (ISbT), and Industrial Senior Trust (ISnT), which are Industrial's special vehicles for these issuances. Guatemala's largest banks are mostly defined as banks with assets between USD5 billion and USD9 billion dollars, operating locally with a network of service points covering the entire country. Two of these banks (Industrial and G&TC) are part of regional financial groups with operations in other Central American countries. Industrial is the largest Guatemalan bank, with a corporate orientation strategy which stands out locally due to its dominant market position. The bank's strengths include its presence in the international markets, which benefits its diversification and length of funding base. However, its corporate orientation results in a moderate profitability and capitalization. G&TC and Industrial share corporate orientation in their business strategy, as well as the good asset quality and moderate risk appetite, but they have minor differences in capitalization (higher in G&TC) and profitability (higher in Industrial). In Fitch's opinion, G&TC and Industrial have a similar risk profile, which is reflected in the shared national and international ratings. In addition, both banks have high exposures to Guatemalan government bonds (currently rated 'BB+' with a Negative Outlook by Fitch) which constrain the IDRs and VR's upside potential up to the sovereign's rating. Banrural is mainly oriented to the retail sector, and characterized by its relatively high and long standing profitability. The high profitability, coupled with its relatively moderate dividend distribution, has allowed it to lead the peer reviewed banks in capitalization. These factors, together with its good credit quality, are reflected in international and national ratings above Industrial's and G&TC's. However, the important dependence that this bank has in its funding to the Guatemalan sovereign limits its international ratings to that of the sovereign. Banrural's Key Rating Drivers - IDRs, VR AND NATIONAL RATINGS Banrural's IDRs and VR reflect its historically high profitability and good capitalization, which compare positively with its main local peers. Banrural's ratings also reflect the bank's good credit quality and ample depository base. The ratings also consider the bank's moderate concentrations in public sector funds and the limited revenue diversification, given its main target markets (micro, and small enterprises). The support rating of '3' reflects Fitch's opinion that the bank maintains a moderate probability of support from the state, given its systemic importance in the banking system. Banrural's national ratings were affirmed and its Outlook remains Stable as the bank's relative strength in the local market remains unchanged. G&TC'S Key Rating Drivers - IDRs, VR AND NATIONAL RATINGS G&TC's IDRs and VR are driven by its sound niche position and franchise, good asset quality and efficiency, ample deposits base and good liquidity. G&TC's ratings are tempered by its moderate capitalization and profitability, high concentration on largest debtors and related-party lending, as well as by the relatively high exposure of its investment portfolio in the local sovereign. The support rating of '3' reflects Fitch's opinion that the bank maintains a moderate probability of support from the state, given its systemic importance in the banking system. G&TC's national ratings were affirmed and its Outlook remains Stable as the bank's relative strength in the local market remains unchanged. Industrial's Key Rating Drivers - IDRs, VR AND NATIONAL RATINGS Industrial's IDRs are driven by its strong national franchise, sound asset quality, good efficiency, ample deposits base, and sound liquidity, which, in turn, are reflected in the bank's VR. Industrial's ratings are constrained by its modest capitalization, moderate profitability, and relatively high loan portfolio concentrations. The support rating of '3' reflects Fitch's opinion that the bank maintains a moderate probability of support from the state, given its systemic importance in the banking system. Industrial's national ratings were affirmed and its Outlook remains Stable as the bank's relative strength in the local market remains unchanged. ISnT and ISbT Key Rating Drivers ISnT's rating is in line with Industrial's IDR reflecting that the senior unsecured obligations rank equally to BI's unsecured and unsubordinated obligations. ISbT is one notch below Industrial's IDR reflecting the subordinated status, ranking junior to all Industrial's present and future senior indebtedness, pari passu with all other unsecured subordinated debt and senior to BI's capital and tier I hybrid securities. Banrural's Rating Sensitivities - IDRs, VR AND NATIONAL RATINGS A downgrade of Guatemala's sovereign ratings will result in a downgrade of Banrural's IDRs. On the other hand, if the sovereign ratings are eventually affirmed at 'BB+' and the Outlook revised to Stable from Negative, it is highly likely that Banrural's Rating Outlook would be revised accordingly. Banrural's national ratings would not be affected should Guatemala's sovereign be downgraded. Industrial and G&TC'S Rating Sensitivities - IDRs, VR and National Ratings Industrial and G&TC's IDR and VR upside potential is considered limited by Fitch, should Guatemala's Negative Outlook eventually result in a sovereign downgrade, considering its high exposure to the sovereign through its securities portfolio. On the other hand, a severe asset-quality deterioration, or a material decline in the bank's profitability, that affects capitalization could pressure the ratings downward. ISnT and ISbT'S Rating Sensitivities - IDR ISnT and ISbT's ratings downgrade potential will be derived from changes in the same direction in Industrial's IDR. Fitch has affirmed the following ratings for Banrural: -- Long-term foreign currency IDR at 'BB+'; Outlook Negative; -- Short-term foreign currency IDR at 'B'; -- Long-term local currency IDR at 'BB+'; Outlook Negative; -- Short-term local currency IDR at 'B'; -- Viability rating at 'bb+'; -- Support at '3'; -- Support Rating Floor at 'BB-'; -- National long -term rating at 'AA+(gtm)'; Outlook Stable; -- National scale short-term affirmed at 'F1+(gtm)'. Fitch has affirmed the following ratings for G&TC: -- Long-term IDR at 'BB'; Outlook Stable; -- Short-term IDR at 'B'; -- Local-currency long-term IDR at 'BB'; Outlook Stable; -- Local-currency short-term IDR at 'B'; -- Viability Rating at 'bb'; -- Support at '3'; -- Support Rating Floor at 'BB-'; -- National scale long-term rating at 'AA-(gtm)'; Outlook Stable; -- National scale short-term rating at 'F1+(gtm)'. Fitch has affirmed the following ratings for Industrial: -- Long-term IDR at 'BB'; Outlook Stable; -- Short-term IDR at 'B'; -- Local-currency long-term IDR at 'BB'; Outlook Stable; -- Local-currency short-term IDR at 'B'; -- Viability Rating at 'bb'; -- Support at '3'; -- Subordinated Tier I Capital Notes debt at 'B-'; -- Support Rating Floor at 'BB-'; -- National scale long-term rating at 'AA-(gtm)'; Outlook Stable; -- National scale short-term rating at 'F1+(gtm)'. Fitch also affirmed the following ratings: -- Industrial Subordinated Trust at 'BB-'; -- Industrial Senior Trust at 'BB'. BANCO INDUSTRIAL: Fitch Affirms Short-Term IDR at 'B' ----------------------------------------------------- Fitch Ratings has completed a peer review of Guatemala's three largest banks: Banco Industrial, S.A. (Industrial), Banco G&T Continental S.A. (G&TC) and Banco de Desarrollo Rural, S.A. Rating Action and Rationale Fitch has affirmed all the ratings of the largest Guatemalan banks as their intrinsic creditworthiness and relativities among the peer remain unchanged. In addition, Fitch has affirmed the issuances of Industrial Subordinated Trust (ISbT), and Industrial Senior Trust (ISnT), which are Industrial's special vehicles for these issuances. Guatemala's largest banks are mostly defined as banks with assets between USD5 billion and USD9 billion dollars, operating locally with a network of service points covering the entire country. Two of these banks (Industrial and G&TC) are part of regional financial groups with operations in other Central American countries. Industrial is the largest Guatemalan bank, with a corporate orientation strategy which stands out locally due to its dominant market position. The bank's strengths include its presence in the international markets, which benefits its diversification and length of funding base. However, its corporate orientation results in a moderate profitability and capitalization. G&TC and Industrial share corporate orientation in their business strategy, as well as the good asset quality and moderate risk appetite, but they have minor differences in capitalization (higher in G&TC) and profitability (higher in Industrial). In Fitch's opinion, G&TC and Industrial have a similar risk profile, which is reflected in the shared national and international ratings. In addition, both banks have high exposures to Guatemalan government bonds (currently rated 'BB+' with a Negative Outlook by Fitch) which constrain the IDRs and VR's upside potential up to the sovereign's rating. Banrural is mainly oriented to the retail sector, and characterized by its relatively high and long standing profitability. The high profitability, coupled with its relatively moderate dividend distribution, has allowed it to lead the peer reviewed banks in capitalization. These factors, together with its good credit quality, are reflected in international and national ratings above Industrial's and G&TC's. However, the important dependence that this bank has in its funding to the Guatemalan sovereign limits its international ratings to that of the sovereign. Banrural's Key Rating Drivers - IDRs, VR AND NATIONAL RATINGS Banrural's IDRs and VR reflect its historically high profitability and good capitalization, which compare positively with its main local peers. Banrural's ratings also reflect the bank's good credit quality and ample depository base. The ratings also consider the bank's moderate concentrations in public sector funds and the limited revenue diversification, given its main target markets (micro, and small enterprises). The support rating of '3' reflects Fitch's opinion that the bank maintains a moderate probability of support from the state, given its systemic importance in the banking system. Banrural's national ratings were affirmed and its Outlook remains Stable as the bank's relative strength in the local market remains unchanged. G&TC'S Key Rating Drivers - IDRs, VR AND NATIONAL RATINGS G&TC's IDRs and VR are driven by its sound niche position and franchise, good asset quality and efficiency, ample deposits base and good liquidity. G&TC's ratings are tempered by its moderate capitalization and profitability, high concentration on largest debtors and related-party lending, as well as by the relatively high exposure of its investment portfolio in the local sovereign. The support rating of '3' reflects Fitch's opinion that the bank maintains a moderate probability of support from the state, given its systemic importance in the banking system. G&TC's national ratings were affirmed and its Outlook remains Stable as the bank's relative strength in the local market remains unchanged. Industrial's Key Rating Drivers - IDRs, VR AND NATIONAL RATINGS Industrial's IDRs are driven by its strong national franchise, sound asset quality, good efficiency, ample deposits base, and sound liquidity, which, in turn, are reflected in the bank's VR. Industrial's ratings are constrained by its modest capitalization, moderate profitability, and relatively high loan portfolio concentrations. The support rating of '3' reflects Fitch's opinion that the bank maintains a moderate probability of support from the state, given its systemic importance in the banking system. Industrial's national ratings were affirmed and its Outlook remains Stable as the bank's relative strength in the local market remains unchanged. ISnT and ISbT Key Rating Drivers ISnT's rating is in line with Industrial's IDR reflecting that the senior unsecured obligations rank equally to BI's unsecured and unsubordinated obligations. ISbT is one notch below Industrial's IDR reflecting the subordinated status, ranking junior to all Industrial's present and future senior indebtedness, pari passu with all other unsecured subordinated debt and senior to BI's capital and tier I hybrid securities. Banrural's Rating Sensitivities - IDRs, VR AND NATIONAL RATINGS A downgrade of Guatemala's sovereign ratings will result in a downgrade of Banrural's IDRs. On the other hand, if the sovereign ratings are eventually affirmed at 'BB+' and the Outlook revised to Stable from Negative, it is highly likely that Banrural's Rating Outlook would be revised accordingly. Banrural's national ratings would not be affected should Guatemala's sovereign be downgraded. Industrial and G&TC'S Rating Sensitivities - IDRs, VR and National Ratings Industrial and G&TC's IDR and VR upside potential is considered limited by Fitch, should Guatemala's Negative Outlook eventually result in a sovereign downgrade, considering its high exposure to the sovereign through its securities portfolio. On the other hand, a severe asset-quality deterioration, or a material decline in the bank's profitability, that affects capitalization could pressure the ratings downward. ISnT and ISbT'S Rating Sensitivities - IDR ISnT and ISbT's ratings downgrade potential will be derived from changes in the same direction in Industrial's IDR. Fitch has affirmed the following ratings for Banrural: -- Long-term foreign currency IDR at 'BB+'; Outlook Negative; -- Short-term foreign currency IDR at 'B'; -- Long-term local currency IDR at 'BB+'; Outlook Negative; -- Short-term local currency IDR at 'B'; -- Viability rating at 'bb+'; -- Support at '3'; -- Support Rating Floor at 'BB-'; -- National long -term rating at 'AA+(gtm)'; Outlook Stable; -- National scale short-term affirmed at 'F1+(gtm)'. Fitch has affirmed the following ratings for G&TC: -- Long-term IDR at 'BB'; Outlook Stable; -- Short-term IDR at 'B'; -- Local-currency long-term IDR at 'BB'; Outlook Stable; -- Local-currency short-term IDR at 'B'; -- Viability Rating at 'bb'; -- Support at '3'; -- Support Rating Floor at 'BB-'; -- National scale long-term rating at 'AA-(gtm)'; Outlook Stable; -- National scale short-term rating at 'F1+(gtm)'. Fitch has affirmed the following ratings for Industrial: -- Long-term IDR at 'BB'; Outlook Stable; -- Short-term IDR at 'B'; -- Local-currency long-term IDR at 'BB'; Outlook Stable; -- Local-currency short-term IDR at 'B'; -- Viability Rating at 'bb'; -- Support at '3'; -- Subordinated Tier I Capital Notes debt at 'B-'; -- Support Rating Floor at 'BB-'; -- National scale long-term rating at 'AA-(gtm)'; Outlook Stable; -- National scale short-term rating at 'F1+(gtm)'. Fitch also affirmed the following ratings: -- Industrial Subordinated Trust at 'BB-'; -- Industrial Senior Trust at 'BB'. ============= J A M A I C A ============= AUBURN COURT LIMITED: Building Up for Sale ------------------------------------------ Avia Collinder at Jamaica Gleaner reports that Auburn Court Limited's six-storey structure at the corner of Trinidad Terrace and St Lucia Avenue has sat idle and incomplete for decades after the planning authorities shut it down for breaching zoning rules. The building, which was developed in the 1980s, eventually fell into the hands of the government and its debt-collection partner, and has been the subject of litigation over the past decade resulting from the takeover, according to Jamaica Gleaner. However, the report notes that it has finally been placed on the market for sale. The report relates that Margaret Curtis of Jamaica Redevelopment Foundation Inc (JRFI), which has hired Ken Tomlinson as receiver to dispose of the building, said the debt-collection company is seeking US$1.2 million (JM$123.5 million) for the asset. The report relays that advertisements placed by Tomlinson's firm, Business Recovery Services Limited, suggest that the receiver is also open to offers. Legal Issues Jamaica Gleaner relays that Mr. Tomlinson said the legal issues surrounding the structure appeared to have ended with the passing of Delbert Perrier of Auburn Court, the company through which the property was developed back in the latter half of the 1980s. However, the report says that Mr. Perrier's former attorney Jennifer Messado told Sunday Business that the lenders had won the court fight. "When you have a mortgage, the mortgage company always wins. You can only buy time . . . See, it is now being sold," the report quoted Atty. Messado as saying. The report relates that within the last decade, Mrs. Perrier had filed lawsuits against two banks -- National Commercial Bank Jamaica (NCB) and the former Union Bank of Jamaica, which later became RBTT Bank and is now RBC Royal Bank after two changes of ownership -- as well as the Government's bail-out firm Financial Sector Adjustment Company (FINSAC) for JM$156 million, which he claimed as lost earnings. The report notes that Mr. Perrier and his company Auburn Court contended, according to reports in 2002, that although they had repaid a JM$4.7-million loan from NCB, the bank was claiming that he owed JM$181.8 million when the debt was assigned to FINSAC and its subsidiary Refin Trust. NCB was among the entities bailed out by the Government. Mr. Perrier passed away three years ago in September 2010. The report discloses that the Kingston and St. Andrew Corporation (KSAC) placed the stop order on the structure during its construction, and ordered that three of the floors be demolished. The report notes that Atty. Messado said the corporation stopped the construction because Auburn Court did not have sufficient parking in its plans to accommodate a six-storey structure. The demolition order was never carried out. The mortgaged building later fell into the hands of its bankers who claimed a default on loan payments, and was among assets taken over during the financial-sector crisis when the Government bailed out banks and insurance companies, starting in the mid-1990s, according to the report. The report notes that Mr. Tomlinson said that whoever buys the property would have to sort out the demolition issues with the planning authorities. However, the report notes that it's unclear whether the zoning issues raised two decades ago are still germane today, given the evolution of New Kingston and the parking services that are now features of the business district. The report relays that JRFI said a minimum 15 per cent deposit is required on all purchases of property; save for those approved for 'seller financing', which requires 30 per cent deposit. Mr. Tomlinson said the building is being sold as a regular commercial property, the report adds. LIME: To Cut Rate For Landline to Mobile Calls by Almost 8% ----------------------------------------------------------- RJR News reports that LIME Jamaica Limited (formerly Cable & Wireless Jamaica Limited) will cut the cost of phone calls from its landline to mobile phones by almost 8 percent. The telecoms company said this means it will cost JM$2.85 per minute to call a mobile phone from its fixed lines, according to RJR News. The report relates that the reduction is from JM$3.09 with the cost to be apportioned on a per second basis. The company said it will also cut the cost to call between landlines to 99 cents per minute, from the current JM$1.50 per minute, says the report. RJR News discloses that Lime says it is hoping that the reduction in call rates for fixed lines will help to boost the take up of the service which has seen a 100 percent jump in installations since July. Headquartered in Kingston, Jamaica, LIME Jamaica Limited (formerly Cable & Wireless Jamaica Limited) is a subsidiary of Cable & Wireless plc. The company is involved in providing domestic and international telecommunications services to both individual and businesses enterprise customers. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 22, 2013, Jamaica Observer said that consumers flocked to LIME Jamaica's mobile network but the company still recorded a JM$808-million net loss for the three months to June, or more than double year-earlier losses. LIME Jamaica recorded a JM$4.9- billion total loss for its March 2013 year end compared with a JM$20-billion loss a year earlier. NATIONAL COMMERCIAL: S&P Raises Issuer Credit Rating to 'B- ----------------------------------------------------------- Standard & Poor's Ratings Services raised its issuer credit ratings on National Commercial Bank Jamaica Ltd. (NCBJ) to 'B-/B' from 'CCC+/C'. The upgrade follows Jamaica's entrance into an IMF (International Monetary Fund) program, which along with additional external funding from other multilateral lenders, improved the country's external liquidity and bolstered investor confidence. S&P removed the ratings on the bank from the CreditWatch negative and assigned a stable outlook. NCBJ's 'b' stand-alone credit profile (SACP) remains unchanged. The upgrade reflects the bank's exposure to Jamaican sovereign- debt securities and loans to public entities, capping the ratings on the bank on the same level as on the sovereign. S&P expects the ratings on the bank to move in tandem with those on the sovereign. The upgrade of Jamaica reflects recent progress in stabilizing the economy, staunching the loss of foreign-exchange reserves, and gaining access to new external funding from official creditors. Following a debt exchange in February 2013--the second such exchange in the past three years--the Jamaican government entered into a four-year loan agreement with the IMF. Enhanced access to external funding, which the government plans to use to fund its fiscal deficit this year and next year, and an expected decline in the fiscal deficit should ease the pressure on external liquidity in the coming year, reducing the risk of a near-term default. The government has undertaken various reforms during 2013 to meet its ambitious fiscal targets, including tax increases and austere wage settlements with most public-sector unions. S&P believes that recent policy measures, along with expected disbursements of external funding, should moderately enhance the government's room to maneuver and bolster its ability to service its debt. The stable outlook reflects S&P's expectation that NCBJ will continue to operate as the largest financial institution in the country, but largely exposed to sovereign debt and public-sector lending. Thus, S&P expects the ratings on the bank to move in tandem with those on the sovereign. Nevertheless, S&P could downgrade the bank if its capital deteriorates significantly, leading to a risk-adjusted capital ratio below 5%, if liquidity is severely reduced, or if losses increase. An upgrade would depend on both the maintenance of the bank's credit fundamentals and an upgrade of the sovereign. * JAMAICA: JSDA Says Government Owes Financial Companies JM$16Bil. ------------------------------------------------------------------ Jamaica Gleaner reports that the Jamaica Securities Dealers Association (JSDA) said the government owes financial companies some JM$16 billion in withholding tax, racked up over a decade. "Withholding tax due or overdue from the Government must be repaid now. . . . Commitments to address this decade-long obligation have been made on many occasions but honored on none," the report quoted JSDA President Julian Mair as saying. The report notes that Mr. Mair later told Sunday Business that more than JM$9 billion of the debt is owed to securities dealers, while the rest is due to the banks and other institutions. The report relates that the sums owed date back to the policy implemented more than 10 years ago, under which tax is withheld at source on all Government of Jamaica assets issued locally. "The inefficiency of this unproductive (zero interest rate) asset places a burden not only on us, but on the economy as a whole. It also does not form a part of our regulatory capital and therefore distorts industry capitalization and strength," Mr. Mair said, the report discloses. The report relays that the securities industry has 44 licensees who collectively manage JM$912 billion. There are 24 core dealers, who manage JM$680 billion of that amount, Mr. Mair said, the report adds. =========== M E X I C O =========== CREDITO REAL: S&P Assigns 'BB' Rating to $300MM 5-Yr. Sr. Notes --------------------------------------------------------------- Standard & Poor's Ratings Services said that it has assigned its 'BB' debt rating to Credito Real, S.A.B. de C.V., SOFOM, E.N.R.'s (Credito Real; global scale rating: BB/Stable/--; national scale rating: mxA/Stable/mxA-2) proposed up to $300 million, five-year senior unsecured notes. The 'BB' rating on the notes is the same as the long-term global scale issuer credit rating on Credito Real, and indicates that the notes will rank equally in right of payment with all of the company's existing and future senior unsecured debt. S&P expects the company to use the proceeds for general corporate purposes, including organic and inorganic loan portfolio growth. Although this issuance will raise the proportion of market debt in the company's funding mix to nearly 76%, during the last quarter of this year S&P expects the company to reduce its position in local market debt and increase its bank funding. This should lower the proportion of market debt-to-total funding to 68%-70% by year's end. The company has the option to redeem the notes in three years after the issuance date at a redemption price. The rating on the notes considers a full foreign-exchange hedge on the principal and interest during the life of the issuance. Credito Real's funding mix, its aggressive growth targets, and the intense competition in payroll lending in Mexico limit the rating. Its adequate asset quality, good profitability metrics, and good adjusted capitalization are positive rating factors. RATINGS LIST Credito Real, S.A.B. de C.V., SOFOM, E.N.R. Global Scale Rating BB/Stable/-- National Scale Rating mxA/Stable/mxA-2 Rating Assigned $300 Mil. five-year senior unsecured notes BB SU CASITA: S&P Lowers Rating on Subordinated Class B Notes to 'D' ----------------------------------------------------------------- Standard & Poor's Rating Services lowered its long-term national scale rating (CaVal) on Hipotecaria Su Casita-Residential Mortgage Backed Notes' subordinated class B notes to 'D (sf)' from 'mxCC (sf)'. The notes, due 2035, represent a cross-border residential mortgage-backed securities (RMBS) transaction issued by Hipotecaria Su Casita S.A. de C.V. SOFOM E.N.R. (Su Casita) and serviced by Patrimonio S.A. De C.V., SOFOM, E.N.R. (Patrimonio). The 'B (sf)' global scale rating on the senior class A notes and the SPUR of 'CC (sf)' remain unchanged. The downgrade of the subordinated class B notes to 'D (sf)' follows the missed interest payment for the Sept. 26, 2013, date. Su Casita's interest collections from the mortgage loans were insufficient to cover the interest payment in full. The interest shortfall on class B was MXN472,556.72. The global scale rating of 'B (sf)' for the senior class A notes reflects MBIA Insurance Corp.'s (B/Stable/--) full financial guarantee insurance policy, which comprises a swap guarantee and a note guarantee. Under S&P's criteria, the issue rating on an insured bond reflects the higher the rating on the bond insurer or the SPUR on the security. S&P's SPUR rating of 'CC (sf)' on the class A notes reflects the stand-alone capacity of an issue to pay debt service without its external enhancement, and, in this case, without the protection of the bond insurance provided by MBIA. The notes were issued on April 2, 2007, in two tranches: class A was issued for $232.53 million and pays monthly interest at a rate of one-month LIBOR plus 0.23%, and class B was issued for MXN226.5 million, indexed to Mexican Inflation Linked Units (UDIs), and pays monthly interest at a rate of 6.47% over the UDI- indexed balance. In December 2010, Su Casita was replaced by Patrimonio as primary servicer for the transaction. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties, and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties, and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATINGS LOWERED Hipotecaria Su Casita-Residential Mortgage Backed Notes Class Class type Rating Amount outstanding (mil. $) To From B Subordinated D (sf) mxCC (sf) MXN184.97 RATINGS UNCHANGED Hipotecaria Su Casita-Residential Mortgage Backed Notes Class Class type Rating Amount outstanding (mil. $) A Senior B (sf) USD97.15 A SPUR CC (sf) USD97.15 ======== P E R U ======== GRUPO ACP: Unveils Results of Consent Solicitation for Waivers -------------------------------------------------------------- Grupo ACP Inversiones y Desarrollo on Sept. 26 disclosed that, in connection with its solicitation of consents from holders of record as of September 12, 2013 of its outstanding $85.0 million aggregate principal amount of 9.00% Notes due 2021 (ISIN XS0611909291, Common Code: 061190929) for the purpose of obtaining waivers relating to certain defaults under the Indenture, dated as of March 30, 2011, as amended by the first supplemental indenture, dated as of March 21, 2013 by and among Grupo ACP, as issuer, Citibank, N.A., London Branch, as trustee, registrar and paying agent, and Dexia Banque Internationale a Luxembourg, societe anonyme, as Luxembourg transfer agent and paying agent, governing the Notes, it has received validly executed consents from Holders representing a majority of the aggregate principal amount outstanding of Notes as of 5:00 p.m. Central European Time, on September 26, 2013. Accordingly, the Waivers became effective as of 5:00 p.m., Central Europe time, on September 26, 2013. All current Holders of Notes, including non-consenting Holders, and all subsequent Holders will be bound by the Waivers. Consents that were delivered at or prior to the Effective Time may not be withdrawn or revoked, except as required by law. Holders of the Notes who provided Consents will be eligible to receive a consent fee of $3.75 per $1,000 principal amount of Notes for which Consents were received on or prior to the Consent Date. The effect of the Waivers is to waive (i) the default in the Maximum Debt Ratio, for the 12-month period from June 30, 2013 until June 30, 2014 (for the avoidance of doubt, compliance will be required to be measured based on the financial statements as of June 30, 2014); and (ii) the anticipated default in the Dividend to Financial Expense Ratio (as defined in the Indenture) as of December 31, 2013 (for the avoidance of doubt, annual compliance will be required to be measured based on the financial statements as of and for the 12 months ended December 31, 2014). Grupo ACP has undertaken to strengthen its capital structure through a primary and secondary equity offering of Grupo ACP Corp. S.A.A. that is currently in process and it believes that after giving effect to such equity offering it will come into compliance with the Maximum Debt Ratio and the Dividend to Financial Expense Ratio. Holders with questions regarding the Consent Solicitation may contact Bondholder Communications Group, LLC, the information and tabulation agent, at: +44 (0) 20 7382-4580 (London) or +1 (212) 809-2663 (New York); or Citigroup Global Markets Inc., the Solicitation Agent at (800) 558-3745 (U.S. toll free) or (212) 723-6108 (collect), Attn: Liability Management Group. About Grupo ACP Grupo ACP is a financial services holding company focused on micro businesses in Peru, Mexico, Brazil and other Latin American countries. It is organized as an asociacion civil sin fines de lucro (not-for-profit association) headquartered in Lima, Peru. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: Clears Debts to Jamaican Agencies ----------------------------------------------------- RJR News reports that Caribbean Airlines Limited has cleared its debts with local state agencies in Jamaica. The report relates that it was reported in 2012 that the air carrier had racked up millions of dollars in debt to the Jamaica Civil Aviation Authority and the Norman Manley International Airport. The arrears comprised unpaid airport fees and taxes, according to RJR News. The report discloses that while confirming that the arrears have been eliminated, Dr. Omar Davies, Minister of Transport, said there are other issues to be worked out with Caribbean Airlines. "The question of the debts is just one of the issues. I will be having a meeting which we will try to address a range of other issues, like the frequency of flights, the coordination of the Tourist Board, etc. . . . there are several other issues," the report quoted Dr. Davies as saying. Caribbean Airlines Limited -- http://www.caribbean-airlines.com/ -- provides passenger airline services in the Caribbean, South America, and North America. The company also offers freighter services for perishables, fish and seafood, live animals, human remains, and dangerous goods. In addition, it operates a duty free store in Trinidad. Caribbean Airlines Limited was founded in 2006 and is based in Piarco, Trinidad and Tobago. * * * As reported in the Troubled Company Reporter-Latin America on May 20, 2013, Caribbean360.com said that Trinidad and Tobago Finance Minister Larry Howai said Caribbean Airlines Limited recorded losses estimated at US$70 million in 2012. In 2011, CAL had recorded losses of US43.7 million. TCRLA reported on March 21, 2012, that RJR News said Caribbean Airlines Limited owes nearly US$30 million to Trinidad and Tobago's fuel provider National Petroleum. Trinidad Express said CAL enjoys a seven-day credit facility for aviation fuel from the company, according to RJR News. However, the report related that the airline has not been able to pay the full amount when invoiced and instead has been issuing partial payments to sustain the account. RJR News noted that Trinidad Express reported that the arrears were built up as no payments have been made despite an attractive fuel subsidy which the airline has enjoyed since it began operations. ================= X X X X X X X X X ================= Large Companies With Insolvent Balance Sheets --------------------------------------------- Total Total Shareholders Assets Equity Company Ticker (US$MM) (US$MM) ------- ------ --------- ------------ AGRENCO LTD AGRE LX 339244073 -561405847 AGRENCO LTD-BDR AGEN33 BZ 339244073 -561405847 AGRENCO LTD-BDR AGEN11 BZ 339244073 -561405847 ALL ORE MINERACA AORE3 BZ 18737018.1 -11880129.9 ALL ORE MINERACA STLB3 BZ 18737018.1 -11880129.9 ARTHUR LAN-DVD C ARLA11 BZ 11642256.1 -17154462.1 ARTHUR LAN-DVD P ARLA12 BZ 11642256.1 -17154462.1 ARTHUR LANGE ARLA3 BZ 11642256.1 -17154462.1 ARTHUR LANGE SA ALICON BZ 11642256.1 -17154462.1 ARTHUR LANGE-PRF ARLA4 BZ 11642256.1 -17154462.1 ARTHUR LANGE-PRF ALICPN BZ 11642256.1 -17154462.1 ARTHUR LANG-RC C ARLA9 BZ 11642256.1 -17154462.1 ARTHUR LANG-RC P ARLA10 BZ 11642256.1 -17154462.1 ARTHUR LANG-RT C ARLA1 BZ 11642256.1 -17154462.1 ARTHUR LANG-RT P ARLA2 BZ 11642256.1 -17154462.1 B&D FOOD CORP BDFCE US 14423532 -3506007 B&D FOOD CORP BDFC US 14423532 -3506007 BALADARE BLDR3 BZ 159454013 -52992212 BATTISTELLA BTTL3 BZ 174796731 -28588662.7 BATTISTELLA-PREF BTTL4 BZ 174796731 -28588662.7 BATTISTELLA-RECE BTTL9 BZ 174796731 -28588662.7 BATTISTELLA-RECP BTTL10 BZ 174796731 -28588662.7 BATTISTELLA-RI P BTTL2 BZ 174796731 -28588662.7 BATTISTELLA-RIGH BTTL1 BZ 174796731 -28588662.7 BIOMM SA BIOM3 BZ 11534236.1 -12761895.5 BIOMM SA-PREF BIOM4 BZ 11534236.1 -12761895.5 BIOMM SA-RT BIOM1 BZ 11534236.1 -12761895.5 BIOMM SA-RT BIOM2 BZ 11534236.1 -12761895.5 BIOMM SA-RTS BIOM9 BZ 11534236.1 -12761895.5 BIOMM SA-RTS BIOM10 BZ 11534236.1 -12761895.5 BOMBRIL BMBBF US 322039321 -20271461.5 BOMBRIL FPXE4 BZ 19416016 -489914907 BOMBRIL BOBR3 BZ 322039321 -20271461.5 BOMBRIL CIRIO SA BOBRON BZ 322039321 -20271461.5 BOMBRIL CIRIO-PF BOBRPN BZ 322039321 -20271461.5 BOMBRIL HOLDING FPXE3 BZ 19416016 -489914907 BOMBRIL SA-ADR BMBPY US 322039321 -20271461.5 BOMBRIL SA-ADR BMBBY US 322039321 -20271461.5 BOMBRIL-PREF BOBR4 BZ 322039321 -20271461.5 BOMBRIL-RGTS PRE BOBR2 BZ 322039321 -20271461.5 BOMBRIL-RIGHTS BOBR1 BZ 322039321 -20271461.5 BOTUCATU TEXTIL STRP3 BZ 27663605.3 -7174512.12 BOTUCATU-PREF STRP4 BZ 27663605.3 -7174512.12 BUETTNER BUET3 BZ 97892219.8 -29984241.8 BUETTNER SA BUETON BZ 97892219.8 -29984241.8 BUETTNER SA-PRF BUETPN BZ 97892219.8 -29984241.8 BUETTNER SA-RT P BUET2 BZ 97892219.8 -29984241.8 BUETTNER SA-RTS BUET1 BZ 97892219.8 -29984241.8 BUETTNER-PREF BUET4 BZ 97892219.8 -29984241.8 CAF BRASILIA CAFE3 BZ 160938144 -149281093 CAF BRASILIA-PRF CAFE4 BZ 160938144 -149281093 CAFE BRASILIA SA CSBRON BZ 160938144 -149281093 CAFE BRASILIA-PR CSBRPN BZ 160938144 -149281093 CAIUA ELEC-C RT ELCA1 BZ 1068602117 -71011565.8 CAIUA SA ELCON BZ 1068602117 -71011565.8 CAIUA SA-DVD CMN ELCA11 BZ 1068602117 -71011565.8 CAIUA SA-DVD COM ELCA12 BZ 1068602117 -71011565.8 CAIUA SA-PREF ELCPN BZ 1068602117 -71011565.8 CAIUA SA-PRF A ELCAN BZ 1068602117 -71011565.8 CAIUA SA-PRF A ELCA5 BZ 1068602117 -71011565.8 CAIUA SA-PRF B ELCA6 BZ 1068602117 -71011565.8 CAIUA SA-PRF B ELCBN BZ 1068602117 -71011565.8 CAIUA SA-RCT PRF ELCA10 BZ 1068602117 -71011565.8 CAIUA SA-RTS ELCA2 BZ 1068602117 -71011565.8 CAIVA SERV DE EL 1315Z BZ 1068602117 -71011565.8 CELGPAR GPAR3 BZ 224346596 -1034483222 CELPA CELP3 BZ 1983995394 -26345832 CELPA-PREF A CELP5 BZ 1983995394 -26345832 CELPA-PREF B CELP6 BZ 1983995394 -26345832 CELPA-PREF C CELP7 BZ 1983995394 -26345832 CELPA-RCT CELP9 BZ 1983995394 -26345832 CELPA-RTS CELP1 BZ 1983995394 -26345832 CENTRAL COST-ADR CCSA LI 355868840 -87473853.9 CENTRAL COSTAN-B CRCBF US 355868840 -87473853.9 CENTRAL COSTAN-B CNRBF US 355868840 -87473853.9 CENTRAL COSTAN-C CECO3 AR 355868840 -87473853.9 CENTRAL COST-BLK CECOB AR 355868840 -87473853.9 CIA PETROLIFERA MRLM3 BZ 377602206 -3014291.81 CIA PETROLIFERA MRLM3B BZ 377602206 -3014291.81 CIA PETROLIFERA 1CPMON BZ 377602206 -3014291.81 CIA PETROLIF-PRF MRLM4 BZ 377602206 -3014291.81 CIA PETROLIF-PRF MRLM4B BZ 377602206 -3014291.81 CIA PETROLIF-PRF 1CPMPN BZ 377602206 -3014291.81 CIMOB PARTIC SA GAFP3 BZ 44047412.2 -45669964.1 CIMOB PARTIC SA GAFON BZ 44047412.2 -45669964.1 CIMOB PART-PREF GAFP4 BZ 44047412.2 -45669964.1 CIMOB PART-PREF GAFPN BZ 44047412.2 -45669964.1 COBRASMA CBMA3 BZ 75975325.5 -2148311127 COBRASMA SA COBRON BZ 75975325.5 -2148311127 COBRASMA SA-PREF COBRPN BZ 75975325.5 -2148311127 COBRASMA-PREF CBMA4 BZ 75975325.5 -2148311127 D H B DHBI3 BZ 110495985 -162541778 D H B-PREF DHBI4 BZ 110495985 -162541778 DHB IND E COM DHBON BZ 110495985 -162541778 DHB IND E COM-PR DHBPN BZ 110495985 -162541778 DOCA INVESTIMENT DOCA3 BZ 273120349 -211736213 DOCA INVESTI-PFD DOCA4 BZ 273120349 -211736213 DOCAS SA DOCAON BZ 273120349 -211736213 DOCAS SA-PREF DOCAPN BZ 273120349 -211736213 DOCAS SA-RTS PRF DOCA2 BZ 273120349 -211736213 EDENOR-B DNOR AR 1394532241 -3893195.34 EDENOR-B EDN AR 1394532241 -3893195.34 EDENOR-B EDNC AR 1394532241 -3893195.34 EDENOR-B EDND AR 1394532241 -3893195.34 EDENOR-B C/E DNORC AR 1394532241 -3893195.34 EDENOR-B US$ DNORD AR 1394532241 -3893195.34 ELEC ARG SA-PREF EASA6 AR 1395153160 -106158748 ELEC ARGENT-ADR EASA LX 1395153160 -106158748 ELEC DE ARGE-ADR 1262Q US 1395153160 -106158748 ELECTRICIDAD ARG 3447811Z AR 1395153160 -106158748 EMP DISTRIB-ADR EDN US 1394532241 -3893195.34 *********** 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 * * *