TCRLA_Public/131003.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     L A T I N   A M E R I C A

           Thursday, October 3, 2013, Vol. 14, No. 196


                            Headlines



A N T I G U A   &   B A R B U D A

LIAT: Chairman Acknowledges Challenges and Disappointments


A R G E N T I N A

BANCO DE SERVICIOS: Moody's Lowers Deposit and Debt Ratings
GRUPO SUPERVIELLE: Moody's Assigns B3 Global Currency Rating
HOLCIM (ARGENTINA): Moody's Assigns B2 CFR; Outlook Negative


B R A Z I L

COSAN SA: S&P Affirms 'BB' Corp. Credit Rating; Outlook Positive
OGX PETROLEO: Misses Debt Payment as Record Regional Default Looms
OGX PETROLEO: S&P Lowers Corporate Credit Rating to 'D'
* Moody's Notes Rising Risk for Infrastructure Issuers in Brazil


C A Y M A N  I S L A N D S

ALCUDIA LEASING: Shareholders' Final Meeting Set for Oct. 25
AM GEN 1998-1: Shareholders' Final Meeting Set for Oct. 25
ARADY 1: Shareholders' Final Meeting Set for Oct. 15
ARADY 2: Shareholders' Final Meeting Set for Oct. 15
DEKANIA CDO II: A.M. Best Affirms 'b' Rating on $21.2-Mil. Notes

GULF HEDGE: Shareholders' Final Meeting Set for Oct. 25
KAWAJIMA: Shareholders' Final Meeting Set for Oct. 15
MYWEATHER CAYMAN: Shareholders' Final Meeting Set for Oct. 15
ODIN CDO I: Shareholders' Final Meeting Set for Oct. 25
OSAKA TWO: Shareholders' Final Meeting Set for Oct. 15

PROFESSIONAL LIABILITY: Member to Hear Wind-Up Report on June 6
SEMPRA CAYMAN: Sole Shareholder to Hear Wind-Up Report on Oct. 16
SEMPRA CHILEAN: Sole Shareholder to Hear Wind-Up Report on Oct. 16
SUNSHINE ASSETS: Sole Member to Hear Wind-Up Report on Nov. 12
TOSU FOUR: Shareholders' Final Meeting Set for Oct. 15


C H I L E

* CHILE: To Get US$2.95MM IDB Fund to Marine Energy Pilot Programs


J A M A I C A

LIME JAMAICA: Targets Businesses Through Bundled Packages


M E X I C O

* MEXICO: Home Builders Brace for Tax-Increase Proposals


T R I N I D A D  &  T O B A G O

TRINIDAD CEMENT: Hearing to Challenge Injunction Postponed


X X X X X X X X X

* Upcoming Meetings, Conferences and Seminars


                            - - - - -


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


LIAT: Chairman Acknowledges Challenges and Disappointments
-----------------------------------------------------------
Nelson A. King at Caribbean360.com reports Dr. Ralph Gonsalves,
chairman of the shareholder governments of Antigua, Leeward
Islands Air Transport, known as LIAT, has acknowledged that the
airline has been a terrible disappointment to the Caribbean
travelling public in recent months.

Mr. Gonsalves said that while not excusing the Antigua-based
airline for the situation, the computer system of one of two new
ATR, French-Italian, aircraft that LIAT recently purchased had
developed problems, according to Caribbean360.com.

The report relates that Mr. Gonsalves said as a result, engineers
were dispatched from Toulouse, France to resolve the problem.

At the same time, Mr. Gonsalves said that the St. Vincent and the
Grenadines prime minister said the older Dash-8 aircraft had also
"suffered unusual difficulties," adding to "a lot of maintenance
costs," the report notes.

"It is a difficult airline to manage, and it is an airline which
is not in financial proposition, but one which is socially and
economically necessary," said Mr. Gonsalves, pointing out that
LIAT flies to 22 destinations, with roughly 1,000 flights per
week, the report relays.

Mr. Gonsalves, the report discloses, said the re-fleeting exercise
of 12 new ATRs is costing LIAT shareholders US$110 million, with
the Barbados-based Caribbean Development Bank (CDB) providing a
loan of US$65 million.

"Unfortunately, when you're moving from one type of aircraft to
another, it's not like moving from a Volkswagen (car), driving it
in the morning and driving a BMW in the evening where you have the
same driver's license," the report quoted Mr. Gonsalves as saying.
"Even though you are qualified to fly the Dash 8, you have to be
specially trained to fly the ATR, and once you are licensed to fly
the ATR by the relevant authorities, you can't go back to fly the
Dash 8."

In addition, the report quoted Mr. Gonsalves as saying, while
LIAT's management had anticipated that more ATRs would be
available, "you had the peculiar situation in which more ATR
pilots were trained than ATR aircrafts to be flown, as well as an
insufficiency of pilots to fly the existing Dash 8s."

The report notes that Mr. Gonsalves said he was still awaiting a
"detailed report as to how and where the error was made.

Mr. Gonsalves said, despite the challenges, the shareholders would
continue to invest in LIAT, stating four of the 12 new ATRs were
now on hand, three will come on stream between now and the end of
January, and all 12 would have arrived by the end of December next
year, the report added.

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.



=================
A R G E N T I N A
=================


BANCO DE SERVICIOS: Moody's Lowers Deposit and Debt Ratings
-----------------------------------------------------------
Moody's Latin America downgraded the bank financial strength
rating (BFSR) of Banco de Servicios Financieros S.A. (BSF) to E
from E+ (plus), which maps to a standalone baseline credit
assessment (BCA) of caa1. Moody's also downgraded the global local
currency deposit and senior debt ratings to B1/Not Prime from
Ba3/Not Prime. Moody's also downgraded the senior unsecured MTN
debt program's local currency ratings to (P)B1 from (P)Ba3. On the
Argentinean national scale, Moody's downgraded the deposit, senior
debt and the senior unsecured MTN debt program's ratings in local
currency to Aa2.ar from Aa1.ar.

Additionally, Moody's affirmed the global foreign currency deposit
ratings at Caa1/Not Prime and the senior unsecured MTN debt
program's in foreign currency at (P)B3. On the Argentinean
national scale, Moody's affirmed the deposit and senior debt
ratings of Ba1.ar in foreign currency and the senior unsecured MTN
debt program's rating in foreign currency at A2.ar.

The outlook on the bank's BFSR, deposit and debt ratings are
stable.

The following ratings of Banco de Servicios Financieros were
downgraded:

Bank Financial Strength Rating: to E from E+, stable outlook

Long and short-term global local-currency deposits and debt
rating: B1 / Not Prime from Ba3 / Not Prime, stable outlook

Long-term National Scale local-currency deposit and debt rating:
Aa2.ar from Aa1.ar, stable outlook

Long-term global local currency MTN debt rating: (P)B1 from
(P)Ba3, stable outlook

Long-term National Scale local currency MTN debt rating: Aa2.ar
from Aa1.ar, stable outlook

The following ratings were affirmed:

Long-and short-term foreign-currency deposits: Caa1 / Not Prime,
stable outlook

Long-term National Scale foreign-currency deposit rating: Ba1.ar,
stable outlook

Long- term global foreign currency MTN debt rating: (P)B3, stable
outlook

Long-term National Scale foreign currency MTN debt rating: A2.ar,
stable outlook

Ratings Rationale:

In lowering BSF's standalone BCA, Moody's noted the deterioration
of the bank's creditworthiness, and particularly the weakening of
its asset quality, as evidenced by the rise in delinquency ratios,
which reached 13.8% of total loans as of June 2013, up from 12.4%
as of YE2012. These metrics reflect the lower quality of the
consumer finance portfolio, which is largely composed of credit
card loans, at 95% of the total. Moreover, the bank's reserve
coverage of problem loans is weak at 75.3% of non-performing loans
as of June 2013.

BSF's balance sheet is predominantly short-term, with 47.5% of the
bank's lending portfolio due within one month, a profile that
poses significant operating costs and commercial efforts in order
to rebuild its balance sheet. Moody's said that because BSF lends
predominantly to low and medium income households, its loan
portfolio is inherently vulnerable to credit losses in a less
benign economic environment of high inflation that reduces
consumer purchasing power as is the case in Argentina.

Moody's explained that BSF's profitability also deteriorated, as
reflected by poor profits as of June 2013, because of increasing
funding costs and higher-than-expected credit costs, as shown by
61.1% higher loan loss provisions than as of June 2012 - from ARS
27.9 million to ARS 45 million- combined with lower business
volumes and high operating expenses. Moody's also noted BSF's
reliance on the credit card business that provides interest and
mainly fee income, although fees may be affected by regulatory
restrictions that could hurt its earnings generation.

Moody's said that BSF's funding structure is poorly diversified
given that it primarily derives from interbank credit lines and
senior debt, which expose the entity to market volatility in a
rising interest rate environment and dependence on funding
availability. BSF is also funded by deposits from its parent
company, but those accounted for only 10.6% of total funding as of
June 2013. In light of the bank's risky target client base and
continued asset quality deterioration amid decelerating credit
conditions and business growth, BSF's capitalization will likely
remain under pressure, said Moody's. As of June 2013, the reported
Tier 1 capital ratio was 12.8%, but the bank's capital cushion is
expected to decline.

Moody's said that the B1 global local currency deposit rating
assigned to Banco de Servicios Financieros incorporates its
assessment of the probability of support from its main
shareholder, Carrefour S.A., rated (P)Baa2. Such support
assessment translates into three notches of uplift from BSF's caa1
baseline credit assessment.

The principal methodology used in this rating was the Global Banks
Industry Methodology published in May 2013.

Moody's National Scale Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within
a country, enabling market participants to better differentiate
relative risks. NSRs differ from Moody's global scale ratings in
that they are not globally comparable with the full universe of
Moody's rated entities, but only with NSRs for other rated debt
issues and issuers within the same country. NSRs are designated by
a ".nn" country modifier signifying the relevant country, as in
".mx" for Mexico.


GRUPO SUPERVIELLE: Moody's Assigns B3 Global Currency Rating
------------------------------------------------------------
Moody's Latin America assigned a B3 global local currency senior
debt rating to Grupo Supervielle S.A.'s eleventh expected issuance
for an amount up to ARS 50 million, which will be due in 18
months, under the group's ARS 500 million medium-term note
program. At the same time, on the National Scale, Moody's assigned
A2.ar local currency debt rating to the expected issuance.

The outlook on the ratings is negative following the negative
outlook on the sovereign ratings.

The following ratings were assigned to Grupo Supervielle S.A.:

ARS 50 million debt expected issuance:

B3 Global Local Currency Senior Debt Rating, negative outlook

A2.ar Argentina National Scale Local Currency Senior Debt Rating,
negative outlook

Ratings Rationale:

Moody's explained that the local currency senior unsecured debt
rating derives from Grupo Supervielle's B3 global local currency
issuer rating. Moody's also noted that seniority was taken into
consideration in the assignment of the debt ratings.

Grupo Supervielle's B3 issuer rating captures its consistent
profitability indicators derived from its operating subsidiaries.
Incorporated in Argentina, Grupo Supervielle is the holding
company for a group of financial services companies, including
Banco Supervielle (rated E+, B2), Cordial Compa¤Ħa Financiera
(rated E+, B2); Tarjeta Automatica S.A. (a credit card company,
unrated), Cordial Microfinanzas S.A. (a microfinance company,
unrated), Supervielle Asset Management S.A., Adval S.A. (call
center), and more recently, Espacio Cordial de Servicios.

The B3 rating for GS' debt is anchored on the B2 global deposit
rating of Banco Supervielle, the group's largest earnings
generator. In addition, the bank's expanding positioning and
market penetration in the commercial (SME) and consumer finance
segments were considered. Moody's said that the one-notch
differential between the B2 deposit rating for Banco Supervielle
and the B3 debt rating of GS reflects the structural subordination
of GS' bondholders to all liability holders of Banco Supervielle.

Grupo Supervielle S.A. is headquartered in Buenos Aires,
Argentina, and reported assets of ARS 1,427 million, and equity of
ARS 1,116 million as of June 2013.

The principal methodology used in this rating was Global Banks
Methodology published in May 2013.

Moody's National Scale Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within
a country, enabling market participants to better differentiate
relative risks. NSRs differ from Moody's global scale ratings in
that they are not globally comparable with the full universe of
Moody's rated entities, but only with NSRs for other rated debt
issues and issuers within the same country. NSRs are designated by
a ".nn" country modifier signifying the relevant country, as in
".mx" for Mexico.


HOLCIM (ARGENTINA): Moody's Assigns B2 CFR; Outlook Negative
------------------------------------------------------------
Moody's Latin America has assigned a first-time Corporate Family
Rating of B2 on its Global Scale and A2.ar on its Argentina
National Scale rating to Holcim (Argentina) S.A. The outlook is
Negative.

Ratings Rationale:

"The B2 and A2.ar ratings principally reflect Holcim's position as
one of the leading construction materials manufacturers and the
second largest player in the local cement industry, serving around
30% of the local demand", said Moody's VP-Senior Analyst Veronica
Amendola. "Moreover, the ratings consider the company's low
leverage and high liquidity profile coupled with the ongoing
support, both in terms of quality and technical affairs, provided
by Holcim Ltd., its main shareholder with a 79.6% stake", said
Amendola. The B2 corporate family rating incorporates a one-notch
rating uplift to the company's standalone credit profile provided
by the implicit support from Holcim's parent company, Holcim Ltd.
(Baa2/Stable).

The assigned ratings are also supported by the company's
historically strong credit metrics. The company has been able to
maintain its Debt/EBITDA ratio, on average, at 0.4x throughout the
period from December 2009 to December 2012. In addition, the
ratings reflect Holcim's proven track record of positive Free Cash
Flow generation and its adequate level of liquidity supported by
its cash position (ARS 184M at June 30, 2013) and total debt
outstanding composed of bank loans of ARS 103M.

The B2 and A2.ar ratings are mainly constrained by the strong
correlation between the construction market and its consequent
links to Argentina's macroeconomic environment. Argentina's GDP
growth has been significantly reduced over the last years, leading
to a softening in the construction industry activity. In this
sense, the ratings reflect expectations that Holcim's overall
credit and financial metrics may be pressured in 2013 and probably
in 2014, as a consequence of both a slowdown in the construction
segment in the country, as well as the inability to fully pass
through cost inflation. The company's margins have suffered
significant deterioration in recent periods related to the
inflationary pressures. The ratings also consider the company's
modest scale and limited geographical diversification as all the
company's assets are located in Argentina.

Holcim's B2 local currency rating reflects its global default and
loss expectation, while the A2.ar national scale rating is based
on the standing of Holcim's credit quality relative to its
domestic peers. Moody's National Scale Ratings (NSRs) are intended
to be relative measures of creditworthiness among debt issues and
issuers within a country, enabling market participants to better
differentiate relative risks. NSRs in Argentina are designated by
the ".ar" suffix. Issuers or issues rated A2.ar present the
average creditworthiness relative to other domestic issuers. NSRs
differ from global scale ratings in that they are not globally
comparable to the full universe of Moody's rated entities, but
only with other rated entities within the same country.

The negative rating outlook for Holcim is in line with Moody's
negative outlook for the Argentine government's B3 rating. The
negative outlook for Holcim reflects Moody's view that the
creditworthiness of the company cannot be completely de-linked
from the credit quality of the Argentine government and thus their
ratings need to closely reflect the risk that the company shares
with the sovereign. Moody's believes that a weaker sovereign has
the potential to create a ratings drag on companies operating
within its borders, and therefore it is appropriate to limit the
extent to which these issuers can be rated higher than the
sovereign, according to Moody's Cross Sector Rating Methodology
"How Sovereign Credit Quality May Affect Other Ratings."

While unlikely at this juncture, ratings could experience upward
pressure if Argentina's B3 government bond rating were upgraded.
In addition, an upgrade of the ratings could result from a
continued strengthening of Holcim's revenues during 2013 while
improving its operating margins and maintaining its low leverage.
Additionally, a more predictable outlook for economic activity in
Argentina would be important for a rating upgrade.

Conversely, a ratings downgrade of the sovereign would likely
result in negative rating actions for Holcim in order to maintain
the issuers' current notching gap relative to the sovereign in the
absence of any significant change in their underlying credit
quality. Quantitatively, a downgrade could result from a drop in
Holcim's EBIT margin to below 4% or a significant increase in
leverage, with cash from operations to total debt below 20%.
Indications of a weakening market share in the domestic cement
market could also place pressure on the ratings, especially if
Holcim is unable to remain among the leader cement players.

Headquartered in Buenos Aires, Argentina, Holcim is the second
leading manufacturer of cement in the local market. With total
revenues of approximately ARS 2.2 billion for the last twelve
months ended in June 30, 2013, Holcim is 80% owned by Holcim Ltd.
(Baa2, Stable), 11% owned by the Argentinean National Social
Security Administration (ANSES) and by Minority Shareholders, with
9% of total shares.

The principal methodology used in this rating was the Global
Building Materials Industry Methodology published in July 2009.

Moody's National Scale Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within
a country, enabling market participants to better differentiate
relative risks. NSRs differ from Moody's global scale ratings in
that they are not globally comparable with the full universe of
Moody's rated entities, but only with NSRs for other rated debt
issues and issuers within the same country. NSRs are designated by
a ".nn" country modifier signifying the relevant country, as in
".mx" for Mexico.



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


COSAN SA: S&P Affirms 'BB' Corp. Credit Rating; Outlook Positive
----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit and debt ratings on Cosan S.A. Industria e Comercio
(Cosan), its subsidiary, Cosan Combustiveis e Lubrificantes, and
on its parent company, Cosan Ltd.  The outlook on the corporate
credit ratings is positive.

The ratings affirmation with the positive outlook reflects the
gradual improvement in the company's capital structure as a result
of an extension of its debt maturity profile and lower interest
payments.  S&P expects Cosan to continue its gradual deleveraging
trend, while it continues to refinance maturing debt to improve
its liquidity and capital structure.  S&P can upgrade Cosan if it
adopts a more conservative approach to M&A transactions and
maintains an "adequate" liquidity, while it uses the more stable
cash flow from its businesses to reduce debt.


OGX PETROLEO: Misses Debt Payment as Record Regional Default Looms
------------------------------------------------------------------
Peter Millard at Bloomberg News reports that OGX Petroleo & Gas
Participacoes SA defaulted on US$1 billion of bonds after missing
an interest payment, accelerating former billionaire Eike
Batista's slide toward Latin America's largest-ever corporate debt
debacle.

The company missed a US$45 million payment on dollar notes due
2022, Rio de Janeiro-based OGX said in a regulatory filing,
according to Bloomberg News.  The decision prompted Standard &
Poor's to assign its default rating to the company and the bonds
while Moody's Investors Service and Fitch Ratings said they'd give
OGX the 30-day grace period before calling it a default.

Bloomberg News notes that Mr. Batista, once Brazil's richest
person, is seeking to renegotiate debt and avoid bankruptcy after
some offshore deposits he'd valued at US$1 trillion turned out to
be duds.  That triggered a selloff that wiped out US$30 billion of
his fortune and pushed down bond prices to 16.5 cents on the
dollar, Bloomberg News relates.

"We do not expect the company to pay the interest due within the
five-business-day cure period established by our criteria, and we
believe this indicates a general default and that the company will
restructure its debt . . . . This is based on OGX's virtually null
cash flow," S&P analysts Renata Lofti and Luciano Gremone said in
a statement Oct. 2, Bloomberg News notes.

S&P cut OGX's corporate rating and the 2022 notes to D from CCC-
and lowered US$2.56 billion in bonds due 2018 to CCC- from C,
saying a December payment probably won't be made.

                          Relief Unlikely

Bloomberg News s relays that Mr. Batista fired his chief financial
officer and hired his fifth restructuring adviser in the past two
weeks.  The 2018 notes have tumbled 5 cents since Sept. 20, when
it announced the departure of Roberto Monteiro, who had led
negotiations with creditors, Bloomberg News relates.  Four days
later, the company hired Lazard Ltd. (LAZ) to work alongside
advisers including Blackstone Group LP (BX) in the talks,
Bloomberg News discloses.

Bloomberg News relates that if OGX can't convince creditors or
other partners to provide debt relief and an immediate infusion of
funds, bondholders may end up with nothing, JPMorgan Chase & Co
said.

Bloomberg News notes that as of June 30, OGX had BRL722 million
(US$327 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.
OGX would enter default on the last day of the grace period if no
payment is made, Moody's analyst Gretchen French said in an e-
mailed reply to questions, Bloomberg News notes.

                            Local Bonds

The producer was set to run out of money by early September based
on its burn rate through the end of the second quarter, according
to data compiled by Bloomberg.

Bloomberg News notes that OGX precipitated Oct. 2 decision when it
said it would postpone payments on BRL2.1 billion of local bonds
held by its OGX Austria unit.  The unit agreed to delay a Sept. 25
payment for an undisclosed amount until March 25, OGX said in a
regulatory filing, Bloomberg News relates.

"According to the bond indenture, OGX has a 30-day period to make
such a payment without causing debt acceleration," the company
said in a statement, Bloomberg News notes.

                           Creditor Talks

"There's going to be an ongoing discussion and, as has
traditionally been the case in many of these scenarios, the likely
way to restructure has typically been an out of court settlement,"
Bloomberg News quoted Daniel Kastholm, a managing director at
Fitch Ratings in Chicago, as saying.

Bloomberg News relates that it would be detrimental for
bondholders if OGX seeks bankruptcy protection in Brazil because
the process will be prolonged and the government could take away
exploration and production licenses, leaving the company with no
assets, said Omar Zeolla, a corporate credit analyst at
Oppenheimer & Co. in New York.

Bloomberg News reports that Brazilian officials have said the
government doesn't plan to bail out OGX.

                             Bad Bets

According to Bloomberg News, if OGX goes into bankruptcy
proceedings, the country's oil regulator could revoke its
exploration and production concessions.  Talks with bondholders
have been complicated because the explorer needs money to test
production at its most promising field, Tubarao Martelo, Bloomberg
News relates.

Bloomberg News notes that OGX made bad bets on carbonate
reservoirs off the coast of Rio state than the traditional
sandstone reservoirs where state-run Petroleo Brasileiro SA
(PETR3) has been producing for decades.   The geology proved more
compartmentalized than expected, hindering the flow of oil and
prompting OGX to announce in July it would abandon a group of
fields it had previously declared commercially viable, Bloomberg
News says.

Bloomberg News relates that the company expects better results at
Martelo, also a carbonate reservoir, where it has drilled six
wells and plans to start producing before the end of the year.

                         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.


OGX PETROLEO: S&P Lowers Corporate Credit Rating to 'D'
-------------------------------------------------------
Standard & Poor's Rating Services lowered its global scale
corporate credit rating on OGX Petroleo e Gas Participacoes S.A.
(OGX) to 'D' from 'CCC-'.  At the same time, S&P lowered its issue
rating on OGX financing vehicle, OGX Austria's, 2022 senior notes
to 'D' from 'CCC-' and S&P's issue rating on OGX's 2018 senior
notes to 'C' from 'CCC-'.

"The downgrade follows the company's Oct. 1, 2013, failure to make
the interest payment on its 2022 senior notes.  We do not expect
the company to pay the interest due within the five-business-day
cure period established by our criteria, and we believe this
indicates a general default and that the company will restructure
its debt.  This is based on OGX's virtually null cash flow
generation and tight liquidity position; its cash holdings were
about $326 million as of June 30, 2013," said Standard & Poor's
credit analyst Renata Lotfi.

S&P has lowered the rating to 'C' on its 2018 senior notes.
Although OGX has not yet defaulted on these notes, S&P believes
that it will fail to make the December interest payment on them.


* Moody's Notes Rising Risk for Infrastructure Issuers in Brazil
----------------------------------------------------------------
The regulatory framework in Brazil has created a negative
environment for infrastructure issuers and made it difficult for
them to obtain higher ratings, says Moody's Investors Service in
"Three key ways that the Brazilian regulatory frameworks are
negatively impacting infrastructure issuers," a report recently
published.

Because of the lack of clarity with regard to current regulations,
inconsistent application of rules by the government and the
evolving nature of regulatory framework, Moody's cannot assign to
infrastructure issuers in Brazil the higher ratings that their
infrastructure peers in other countries have. "Even though the
infrastructure issuers Moody's rates in Brazil have solid credit
metrics, peers operating in more predictable and stable regulatory
environments have higher ratings," said Alexandre Leite, Moody's
Vice President and Senior Analyst and one of the authors of the
report.

"Government interference and the inconsistency in the application
of regulation and procedures have created further uncertainties in
three infrastructure segments in particular: toll roads, electric
utilities and sanitation," added Leite.

Affecting toll roads, the government decided amid rising street
protests to cancel the annual tariff that toll road companies were
to receive on July 1, instead proposing a series of ad-hoc
measures to compensate for the tariff freeze. These measures
caused investor concern that there would be a shortfall in cash
flow.

"The government's decision created a credit negative precedent
that affected all rated operating toll roads with concessions in
the State of Sao Paulo," said Moody's Vice President and Senior
Credit Officer Jose Soares, another author of the report. "The
government is also examining legislation that would make people
who live or work in the municipalities where toll road plazas are
located exempt from toll payments which, if approved, would have a
significant and immediate negative impact on operating cash
flows."

Numerous changes to the regulatory framework over the past two
decades have plagued the electric utility industry in particular.
The most recent regulatory changes involved the government's plans
a year ago to renew the generation and transmission concessions
set to expire over the course of 2015-2017, which resulted in
overall costs much higher than most concessionaries and investors
had expected.

"The government's handling of the process since the initial
announcement and subsequent discussion and communication created
uncertainties about the quality and the level of supportiveness of
the Brazilian electricity regulatory environment," said Soares.
"As such, we foresee a lower assurance of timely recovery of costs
and investments in Brazil."

Brazil's Basic Sanitation Law #11,445 established a sanitation
regulatory framework in 2007. There are nevertheless uncertainties
regarding the implementation and interpretation of certain
provisions pertaining to tariff adjustments that has resulted in a
tariff freeze in some instances. There are also questions
regarding the independence of the various state agencies that
regulate the sanitation sector.



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


ALCUDIA LEASING: Shareholders' Final Meeting Set for Oct. 25
------------------------------------------------------------
The shareholders of Alcudia Leasing Limited will hold their final
meeting on Oct. 25, 2013, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

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


AM GEN 1998-1: Shareholders' Final Meeting Set for Oct. 25
----------------------------------------------------------
The shareholders of AM Gen 1998-1 Ltd will hold their final
meeting on Oct. 25, 2013, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

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


ARADY 1: Shareholders' Final Meeting Set for Oct. 15
----------------------------------------------------
The shareholders of Arady 1 will hold their final meeting on
Oct. 15, 2013, at 9:00 a.m., to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

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


ARADY 2: Shareholders' Final Meeting Set for Oct. 15
----------------------------------------------------
The shareholders of Arady 2 will hold their final meeting on
Oct. 15, 2013, at 9:00 a.m., to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

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


DEKANIA CDO II: A.M. Best Affirms 'b' Rating on $21.2-Mil. Notes
----------------------------------------------------------------
A.M. Best Co. has affirmed the debt ratings on a multi-tranche
collateralized debt obligation (CDO) co-issued by two bankruptcy
remote special purpose vehicles: Dekania CDO II, Ltd. (Cayman
Islands) and Dekania CDO II, Inc. (Delaware) (collectively known
as Dekania II and issuers).  The outlook for all ratings is
stable.

The principal balance of the rated notes are collateralized by a
pool of trust preferred securities, surplus notes and secondary
market securities (collectively, the capital securities),
primarily issued by small to medium-sized insurance companies.
The capital securities are pledged as security to the notes.
Interest paid by the issuers of the capital securities are the
primary source of funds to pay operating expenses of the issuers
and interest on the notes.  Repayment of the note principal is
primarily funded from the redemption of the capital securities.

These rating actions primarily reflect: (1) the current issuer
credit ratings (ICR) of the remaining issuers of the capital
securities and the number of terminated capital securities; (2) a
stress of up to 250% on the assumed marginal default rates of
insurers (derived from Best's Idealized Default Rates of
Insurers); (3) the amount of capital securities considered to be
in distress; (4) recoveries of 0% after defaults of the capital
securities; and (5) qualitative factors such as the effect of
interest rate spikes; subordination level associated with each
rated tranche; the adjacency of very high investment grade ratings
to very low non-investment grade ratings in the transaction's
capital structure; and the possibility that additional redemptions
of highly-rated entities will leave lower-rated companies in the
collateral pool.

The ratings could be upgraded or downgraded and/or the outlook
revised if there are material changes in the ICR of the remaining
insurance carriers, an increase in the number of defaulted capital
securities or significant termination of the number of existing
capital securities.

The following debt ratings have been affirmed:

Dekania II

-- "aaa" on $200.0 million Class A-1 First Priority Senior
    Secured Floating Rate Notes Due 2034

-- "aa+" on $42.0 million Class A-2 Second Priority Senior
    Secured Floating Rate Notes Due 2034

-- "bb+" on $60.0 million Class B Third Priority Senior Secured
    Floating Rate Notes Due 2034

-- "b" on $21.2 million Class C-1 Fourth Priority Deferrable
    Interest Fixed/Floating Rate Notes Due 2034

-- "b" on $30.0 million Class C-2 Fourth Priority Deferrable
    Interest Fixed/Floating Rate Notes Due 2034

-- "ccc-" on $15.0 million Class D-1 Mezzanine Secured
    Deferrable Interest Floating Rate Notes Due 2034

-- "ccc-" on $5.0 million Class D-2 Mezzanine Secured Deferrable
    Interest Floating Rate Notes Due 2034

These are structured finance ratings.


GULF HEDGE: Shareholders' Final Meeting Set for Oct. 25
-------------------------------------------------------
The shareholders of Gulf Hedge Portfolio 1 Limited will hold their
final meeting on Oct. 25, 2013, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.

The company's liquidator is:

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


KAWAJIMA: Shareholders' Final Meeting Set for Oct. 15
-----------------------------------------------------
The shareholders of Kawajima will hold their final meeting on
Oct. 15, 2013, at 9:00 a.m., to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

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


MYWEATHER CAYMAN: Shareholders' Final Meeting Set for Oct. 15
-------------------------------------------------------------
The shareholders of Myweather Cayman, LLC will hold their final
meeting on Oct. 15, 2013, at 9:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

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


ODIN CDO I: Shareholders' Final Meeting Set for Oct. 25
-------------------------------------------------------
The shareholders of Odin CDO I (Cayman Islands No.4) Limited will
hold their final meeting on Oct. 25, 2013, to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

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


OSAKA TWO: Shareholders' Final Meeting Set for Oct. 15
------------------------------------------------------
The shareholders of Osaka Two will hold their final meeting on
Oct. 15, 2013, at 9:00 a.m., to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

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


PROFESSIONAL LIABILITY: Member to Hear Wind-Up Report on June 6
---------------------------------------------------------------
The member of Professional Liability Underwriting Services SPC,
Ltd. will receive, on June 6, 2013, at 10:00 a.m., the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Britni Strong
          Marsh Management Services Cayman Ltd.
          P.O. Box 1051 G.T.
          Governors Square
          23 Lime Tree Bay Avenue George Town
          Grand Cayman
          Cayman Islands


SEMPRA CAYMAN: Sole Shareholder to Hear Wind-Up Report on Oct. 16
-----------------------------------------------------------------
The sole shareholder of Sempra Cayman Americas Ltd. will receive,
on Oct. 16, 2013, at 10:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:


          Randall L. Clark
          c/o Campbells Corporate Services Limited
          P.O. Box 268 Willow House
          Cricket Square
          Grand Cayman KY1-1104
          Cayman Islands
          Telephone: +1 (345) 949 2648
          Facsimile: +1 (345) 949 8613


SEMPRA CHILEAN: Sole Shareholder to Hear Wind-Up Report on Oct. 16
------------------------------------------------------------------
The sole shareholder of Sempra Chilean Equity III Ltd. will
receive, on Oct. 16, 2013, at 10:00 a.m., the liquidator's report
on the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Randall L. Clark
          c/o Campbells Corporate Services Limited
          P.O. Box 268 Willow House
          Cricket Square
          Grand Cayman KY1-1104
          Cayman Islands
          Telephone: +1 (345) 949 2648
          Facsimile: +1 (345) 949 8613


SUNSHINE ASSETS: Sole Member to Hear Wind-Up Report on Nov. 12
--------------------------------------------------------------
The sole member of Sunshine Assets Limited will receive, on
Nov. 12, 2013, at 10:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

          Lion International Management Limited
          Craigmuir Chambers
          Road Town, Tortola
          British Virgin Islands


TOSU FOUR: Shareholders' Final Meeting Set for Oct. 15
------------------------------------------------------
The shareholders of Tosu Four will hold their final meeting on
Oct. 15, 2013, at 9:00 a.m., to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

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



=========
C H I L E
=========


* CHILE: To Get US$2.95MM IDB Fund to Marine Energy Pilot Programs
------------------------------------------------------------------
Chile will launch two marine energy pilots on the southern coast
of the country, an initiative that aims at supporting the
development of this energy source, contributing to foster the
country's energy security and the diversification of its economy.

The initiative will explore the potential of this clean
technology, which so far has not been utilized in Chile and that,
according to a study commissioned by the IDB, could have a
significant impact on the country's energy matrix if only a small
amount of the available resource is used.

The project, funded by a US$2.95 million technical cooperation
grant from the Inter-American Development Bank, includes US$2.4
million in investment funding for two pilot programs.  The first
pilot will focus on tidal energy while the second will use the
power generated by waves.  The investment funding will be
complemented by a total of US$550,000 in technical support to
accompany the implementation of these pilot programs.

"In terms of energy needs, Chile is the second least self-
sufficient country in Latin America after Panama, and currently
imports 75 percent of its energy resources.  So far, the potential
of tidal and wave power has not been used in the country or
elsewhere in Latin America, but has a huge potential," said
Christoph Tagwerker, consultant at the Climate Change and
Sustainability Division of the IDB.  Chile now has a great
opportunity to change its dependency on foreign energy and to
reduce their greenhouse gas emissions of.  In fact, it is one of
the countries with the highest marine and solar energy resources
of the Latin American region."

Two companies that will be selected by the Chilean Government will
benefit from this technical cooperation, and will be responsible
for the design, construction and operation of these pilot
programs.  Since tidal and wave energy are new in Chile, the IDB
will provide technical assistance to the government throughout the
entire execution of the program, from the bidding process to the
operation of these new marine energy facilities.  The Bank's
contribution is expected to help attract the participation of
other sources of financing to the program.



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


LIME JAMAICA: Targets Businesses Through Bundled Packages
---------------------------------------------------------
Jamaica Observer reports that LIME Jamaica Limited (formerly Cable
& Wireless Jamaica Limited) launched three bundles packages --
Business Basic, Business Ideal and Business Pro -- targeting
businesses with ADSL Internet, fixed line local and international
minutes and voice services.

The packages start at JM$5,570 per month.

"We aware of the many challenges that operators face in equipping
their business to function efficiently in today's fast-paced
environment and we want to make it simple for especially small and
medium sized entities to access the services they need to make
their business strive while controlling their budgets," the report
quoted Vennis Williamson, head of SME Business Sales as saying.

Jamaica Observer discloses that Mr. Williamson added that the
plans also allow for additional services such as video and voice
conferencing, PBX systems, Closed User Group (CUG) and Dedicated
Internet Access (DIA).

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.



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


* MEXICO: Home Builders Brace for Tax-Increase Proposals
--------------------------------------------------------
Kris Hudson and Amy Guthrie at The Wall Street Journal report that
Mexico's new-home industry, still suffering from the global
economic downturn and from shifting consumer preferences, is
bracing for yet another blow from a package of steep tax increases
proposed by President Enrique Pena Nieto.

President Pena Nieto, who took office in 2012, announced a range
of proposed tax increases in September as part of his long-awaited
proposal to revamp the economy, according to The WSJ.  President
Pena Nieto said strategy for long-term growth is to raise new
revenue to fund new social programs and reduce Mexico's dependence
on oil revenue, The WSJ relates.

However, The WSJ notes that home builders are worried sales would
be hurt by the measures, particularly President Pena Nieto's
proposed new 16% "value added" tax that would apply to many home
sales, mortgage interest and rents, among other consumer spending.
President Pena Niet also wants to place a capital-gains tax on
home sales of MXN1.24 million (US$94,200) or more, The WSJ says.
The previous floor was MXN7 million.

"We expect that demand for new homes will contract by at least
35%" if the tax changes are approved as proposed, The WSJ quoted
Gene Towle, managing partner in Mexico City-based real-estate
research firm Softec SC, as saying.

The WSJ notes that various aspects of the tax overhaul might still
be eliminated or watered down by President Pena Nieto's opponents
in Mexico's Congress by the Nov. 15 deadline for approving a
budget.  Mexican Finance Minister Luis Videgaray clarified last
week that the value-added tax on home sales and mortgage interest
won't apply to low-income housing, though the details of such an
exemption remain to be worked out, The WSJ says.

"Taxes are always subject to debate, they'll always cause an
uproar. . . . But what this reform seeks is to be a fair reform in
which those who earn the most pay the most," The WSJ quoted Mr.
Videgaray as saying.

The WSJ notes that still, new taxes would add to the burden of
Mexico's reeling home-building industry, which has seen a decline
of construction starts to an estimated 380,000 this year from
630,000 at the peak in 2008, according to BBVA Bancomer, which
includes built-but-unsold homes in its figures.

The WSJ relates that the Mexican government now subsidizes roughly
a third of all purchases of homes of US$25,000 or less, paying the
builders subsidies of roughly US$5,000 per home to keep the prices
low, according to Softec's Mr. Towle.  In addition, government-
affiliated mortgage lenders Infonavit and FOVISSSTE back more than
70% of all mortgages originated in Mexico, The WSJ notes.

The WSJ relays that President Pena Nieto is keeping housing
subsidies in place for the poor.  But President Pena Nieto's tax
proposal focuses on the rest of the housing market as a tax
generator, The WSJ notes.  The overhaul would make mortgage
interest, previously deductible from taxes, nondeductible, The WSJ
relays.

The WSJ notes that President Pena Nieto also cemented a long-
anticipated policy of focusing the government's affordable-housing
subsidies on urban apartment complexes rather than suburban tract
housing.

The WSJ discloses critics said Mr. Pena Nieto's housing policies
will be damaging to the broader economy.



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


TRINIDAD CEMENT: Hearing to Challenge Injunction Postponed
----------------------------------------------------------
RJR News reports that the hearing of an appeal brought by
Caribbean Cement Limited's parent company Trinidad Cement Limited
(TCL) which is challenging an injunction which blocked its annual
general meeting has been adjourned.

The hearing was originally scheduled for Sept. 30.  However, RJR
News notes that a notice at Trinidad's Court of Appeal said it had
been pushed back until Oct.2.  The notice did not give a reason
for the postponement.

RJR News discloses that TCL wants the Appeal Court to overturn the
injunction which was granted to a group of minority shareholders
by a High Court judge hours before the meeting was scheduled to
start on July 12.

The report relates that the injunction forms part of a lawsuit in
which the shareholders are challenging a decision by TCL's
directors to refuse to attach their proposal and statement to the
proxy circular which accompanied the notice of the meeting.

The minority group wants to nominate five directors to TCL's
board, the report adds.

                       About Trinidad Cement

Trinidad Cement Limited is a cement company and is the parent
company of Caribbean Cement Company Limited.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Oct. 5, 2011, RJR News reports that Trinidad Cement Limited
reached an agreement with its debtors on the terms and conditions
attached to the repayment of its debt.  The agreement will convert
most of the company's debt into an 8-year facility, to be paid,
quarterly, from March 2013, according to RJR News.  The report
related that deal also includes certain performance criteria for
repaying the debt and if those are not met, the company will be
penalized.



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


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

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

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

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


                    ***********


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

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

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


                            ***********


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

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

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

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

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

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


                   * * * End of Transmission * * *