TCRLA_Public/131009.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

           Wednesday, October 9, 2013, Vol. 14, No. 200


                            Headlines



A R G E N T I N A

SUPERVIELLE CREDITOS: Moody's Rates Floating Rate Debt Sec. 'Ba3'
* ARGENTINA: Rejected by U.S. Court in Bond Payment Appeal


B R A Z I L

BANCO PINE: S&P Affirms 'BB+/B' Rating; Outlook Stable
OGX PETROLEO: Bonds Hit All-Time Low Amid Restructuring Talks
OGX PETROLEO: ANP Denies Request to Suspend Oil Fields Development


C A Y M A N  I S L A N D S

ADLOGICA: Shareholder to Hear Wind-Up Report on Oct. 15
ALLEGRO OPTHALMICS: Shareholder to Hear Wind-Up Report on Oct. 15
CARLYLE HIGH: Shareholder to Hear Wind-Up Report on Nov. 1
COSIMO (GP): Shareholders' Final Meeting Set for Oct. 28
DIAMOND STARS: Shareholder Receives Wind-Up Report

GK FORTUNE: Shareholder to Hear Wind-Up Report on Nov. 1
GLOBAL INTERNATIONAL: Members' Final Meeting Set for Oct. 15
MULTI BANKING: Shareholders' Final Meeting Set for Oct. 31
THAI INVESTOR IX: Members' Final Meeting Set for Oct. 15
THAI INVESTOR X: Members' Final Meeting Set for Oct. 15

TRIAGE OFFSHORE: Shareholders' Final Meeting Set for Oct. 18


C H I L E

INVERSIONES ALSACIA: Supplements Consent Solicitation Statement


D O M I N I C A N   R E P U B L I C

XSTRATA FALCONDO: Miners Protest, 10,000 Jobs at Risk Amid Closure


J A M A I C A

* JAMAICA: Shortage of Foreign Currency Affecting Large Buyers


P U E R T O   R I C O

DORAL FINANCIAL: Moody's Lowers Sr. Unsecured Rating to 'Caa3'
* PUERTO RICO: Lawyers, Experts Predict Restructuring of Bonds
* PUERTO RICO: Debt Troubles U.S. Regulators


T R I N I D A D  &  T O B A G O

CARIBBEAN AIRLINES: Looks to Jamaica to Fill Keys Posts


                            - - - - -


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A R G E N T I N A
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SUPERVIELLE CREDITOS: Moody's Rates Floating Rate Debt Sec. 'Ba3'
-----------------------------------------------------------------
Moody's Latin America Calificadora de Riesgo rates Supervielle
Creditos 72, a transaction that will be issued by Equity Trust
(Argentina) S.A. - acting solely in its capacity as Issuer and
Trustee.

As of Oct. 7, the securities for this transaction have not yet
been placed in the market. If any assumption or factor Moody's
considers when assigning the ratings change before closing, the
ratings may also change.

- ARS 196,000,000 in Floating Rate Debt Securities of "Fideicomiso
Financiero Supervielle Creditos 72", rated Aaa.ar (sf) (Argentine
National Scale) and Ba3 (sf) (Global Scale, Local Currency)

- ARS 4,000,000 in Certificates of "Fideicomiso Financiero
Supervielle Creditos 72", rated C.ar (sf) (Argentine National
Scale) and C (sf) (Global Scale, Local Currency)


Ratings Rationale:

The rated securities are payable from the cash flow coming from
the assets of the trust, which is an amortizing pool of
approximately 30,546 eligible personal loans denominated in
Argentine pesos, with a fixed interest rate, originated by Banco
Supervielle, in an aggregate amount of ARS 200,003,182.89

These personal loans are granted to pensioners that receive their
monthly pensions from ANSES (Argentina's National Governmental
Agency of Social Security - Administración Nacional de la
Seguridad Social). The pool is also constituted by loans granted
to government employees of the Province of San Luis. Banco
Supervielle is the payment agent entity and automatically deducts
the monthly loan installment directly from the employee's paycheck
and pensioner's payment.

Overall credit enhancement is comprised of 2% of subordination for
the Class A Floating Rate Debt Securities. In addition the
transaction has various reserve funds and excess spread.

Moody's considered the credit enhancement provided in this
transaction through the initial subordination levels for each
rated class, as well as the historical performance of
Supervielle's portfolio. In addition, Moody's considered factors
common to consumer loans securitizations such as delinquencies,
prepayments and losses; as well as specific factors related to the
Argentine market, such as the probability of an increase in losses
if there are changes in the macroeconomic scenario in Argentina.
These factors were incorporated in a cash flow model in order to
determine the expected loss for the rated securities. Finally,
Moody's also evaluated the back-up servicing arrangements in the
transaction.

In assigning the rating to this transaction, Moody's assumed a
lognormal distribution for defaults on the main pool with a mean
of 2.5% and a coefficient of variation of 50%. Also, Moody's
assumed a lognormal distribution for prepayments with a mean of
25% and a coefficient of variation of 70%. These assumptions are
derived from the historical performance to date of the
Supervielle's pools. Servicer default was modeled by simulating
the default of the Banco Supervielle as the servicer consistent
with its current rating of B2/Aa3.ar. In the scenarios where the
servicer defaults, Moody's assumed that the defaults on the pool
would increase by 20 percentage points and a month of collections
will be lost, given that the trust account is in Banco
Supervielle.

The model results showed 1.95% expected loss for the Floating Rate
Debt Securities and 75.13% for the Certificates.
*Moody's ran several stress scenarios, including increases in the
default rate assumptions. If default rates were increased one
percentage point from the base case scenario for the pool (i.e.,
mean of 3.5% and a coefficient of variation of 50%), the ratings
of Class A Floating Rate debt securities would likely be
downgraded to B1 (sf). The ratings of the Certificates would
likely remain the same.

Moody's also considered the risk that a disruption in the flow of
payments from ANSES or the Government of San Luis to pensioners
and employees respectively, could severely affect the performance
of the pool. Moody's believes that the ratings assigned are
consistent with this risk.

Finally, Moody's also evaluated the back-up servicing arrangements
in the transaction. If Banco Supervielle is removed as servicer,
Equity Trust S.A. will be appointed as the back-up servicer.


* ARGENTINA: Rejected by U.S. Court in Bond Payment Appeal
----------------------------------------------------------
Greg Stohr at Bloomberg News reports that the U.S. Supreme Court
left intact a ruling that may force Argentina to make payments on
defaulted government bonds, rejecting that country's appeal in a
clash that has roiled its financial markets.

The justices let stand a 2012 U.S. appeals court decision that
bars Argentina from making payments on US$24 billion in
restructured debt unless it also pays owners of the earlier
repudiated bonds, according to Bloomberg News.  The bondholders
include a fund controlled by billionaire Paul Singer.  The Supreme
Court still could get involved at a later stage, Bloomberg News
notes.

The legal fight, which puts U.S. courts in the unusual position of
shaping a foreign country's finances, has raised the possibility
of a new Argentine default and prompted Standard & Poor's, Fitch
and Moody's to lower the country's bond ratings.  Argentina said
it faces the prospect of having to pay more than US$15 billion to
cover defaulted debt and penalties, Bloomberg News discloses.

Bloomberg News relates that the lower court ruling "represents an
unprecedented intrusion into the activities of a foreign state
within its own territory," Argentina argued in its appeal.

The report says the focus of the fight now turns to a federal
appeals court in New York, where Argentina is seeking
reconsideration of a separate decision in the case.  Should that
bid fail, the country could file a new Supreme Court appeal,
Bloomberg News says.

Bloomberg News notes that the appeals court has said its decision
won't take effect until the Supreme Court makes a final decision
on whether to hear Argentina's appeals.

                          Finance Secretary

Bloomberg News relates that Argentina will use all legal means to
appeal the case, Finance Secretary Adrian Cosentino said.

Justice Sonia Sotomayor didn't participate in the high court
action, giving no reason.  Justice Sotomayor took part in
Argentina debt litigation when she was an appeals court judge,
Bloomberg News relays.

Bloomberg News discloses that Singer's NML Capital Ltd., a unit of
Elliott Management Corp., says Argentina is exaggerating the
impact of the appeals court ruling, which directly affects claims
for US$1.5 billion.  The fund said Argentina can afford to pay
both sets of bondholders, notes the report.

According to Bloomberg News, Ms. Singer said the dispute won't
affect the ability of nations to borrow money.  Argentina's
problems are "of its own making," Mr. Singer said at the Wall
Street Journal's Heard on the Street conference in New York,
Bloomberg News notes.

Bloomberg News recalls that the dispute stems from Argentina's
2001 default on a record US$95 billion in debt.  The country
offered to substitute bonds worth 25 to 29 cents on the dollar in
2005 and made a similar proposal in 2010.  Owners tendered about
92 percent of the outstanding debt, notes the report.

                          Bond Agreement

The report says NML bought some of the defaulted bonds from the
holdouts and sued to collect the full amount.  NML said a clause
in the bond agreement bars Argentina from treating the
restructured securities more favorably than the defaulted bonds,
Bloomberg News relates.

A federal trial judge agreed with that argument, as did the New
York-based 2nd U.S. Circuit Court of Appeals, says Bloomberg News.

Bloomberg News relates that in its Supreme Court appeal, Argentina
contended that the lower courts violated foreign sovereign
immunity by dictating what the country can do with property
located outside the U.S.  NML and a second group of investors led
by Aurelius Capital Master Ltd. urged the high court to reject the
appeal.

Bloomberg News added that the 2nd Circuit issued a second ruling
in August, saying Argentina must pay the holdout creditors in full
if it makes payments on its restructured debt.  Argentina is
seeking a new hearing before a larger panel of judges.  A
rejection of that request would clear the way for the country to
file another Supreme Court appeal, Bloomberg News discloses.

                     'Speculative, Hyperbolic'

In the August opinion, Bloomberg News reports, the appeals court
said Argentina's predictions of a financial cataclysm were
"speculative, hyperbolic and almost entirely of the republic's own
making."

Bloomberg News relates that the country is exploring options for
trying to sidestep the appeals court ruling.  Argentine President
Cristina Fernandez de Kirchner said in August that the country
will offer a new restructuring to defaulted bondholders and let
investors who own the restructured notes swap them into debt
subject to local law, Bloomberg News relays.

Bloomberg News notes that a federal judge on Oct. 4 barred
Argentina from going forward with that plan, calling it "an
apparent attempt to evade" his previous orders.

Bloomberg News adds that Argentina previously said it never would
pay the funds, which the country's leaders have called "vultures."
Its legislature passed a law in 2005 barring payment on the
defaulted bonds.

The case is Argentina v. NML Capital, 12-1494.



===========
B R A Z I L
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BANCO PINE: S&P Affirms 'BB+/B' Rating; Outlook Stable
------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB+/B' global
scale and 'brAA' national scale ratings on Banco Pine S.A. (Pine).
The outlook is stable.

S&P based its ratings on Pine's conservative risk management and
strong asset quality, "adequate" liquidity, and "adequate" capital
and earnings.  The bank's "moderate" business position given its
small scale in the Brazilian financial system and focus on the
corporate and small and medium enterprise (SME) segments, as well
as its relatively concentrated funding profile compared to other
Latin American banks offset the positives.

"Under our bank criteria, we use our Banking Industry Country Risk
Assessment's (BICRA) economic risk and industry risk scores to
determine a bank's anchor, the starting point in assigning an
issuer credit rating.  Our anchor is based on the country's
economic risk score of '5' and an industry risk score of '4'.
Brazil's economic risk reflects low household credit capacity and
GDP per capita, which limits the sovereign's ability to withstand
economic downturns.  It also considers our view that economic
imbalances have increased as a result of rapid credit expansion.
As this trend in lending continues amid a slowly growing economy,
we are concerned about increasing household debt burden," S&P
said.

Conversely, Brazil's improvement in payment culture and rule of
law, moderate leverage in the corporate sector, and the absence of
high-risk loans in banks somewhat mitigate the higher risk factors
of S&P's economic risk assessment.  S&P assess the current trend
of economic risk as negative.  Despite the slowdown in credit
expansion during 2012, S&P believes that the current
administration's policies could lead to a new period of rapid
credit expansion.  Further lending would increase an already hefty
debt burden on households, subjecting the system to incremental
credit risk.

S&P continues to view Pine's business position as "moderate" given
its relatively small market share in the Brazilian financial
system, and its focus on the corporate and SME lending segment.
"The bank has relatively stable revenues and has continued to
diversify its sources.  As of June 30, 2013, it had about
R$10.5 billion in assets and R$5.2 in loans (R$9 billion
considering letters of credit, bank guarantees and corporate
bonds), ranking as the 34th largest financial institution in the
country with less than 1% of the financial system's assets,
according to the Central Bank," said Standard & Poor's credit
analyst Vitor Garcia.  Its portfolio is concentrated in loans to
corporate companies and larger SMEs in Brazil, which leads to a
concentrated portfolio given the bank's relatively small size and
large tickets that its clients demand.  On the other hand, the
bank's client base, and management's conservatism and expertise
has allowed Pine to post better-than-average asset quality and
stable profitability in the last few years.


OGX PETROLEO: Bonds Hit All-Time Low Amid Restructuring Talks
-------------------------------------------------------------
Luciana Magalhaes at Daily Bankruptcy Review reports that bonds of
OGX Petroleo e Gas Participacoes SA, the Brazilian oil company
controlled by businessman Eike Batista, fell to an all-time low on
Oct. 7, 2013.

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: ANP Denies Request to Suspend Oil Fields Development
------------------------------------------------------------------
Luciana Magalhaes and Jeff Fick at The Wall Street Journal report
that Brazil's National Petroleum Agency (ANP) has denied a request
by OGX Petroleo e Gas Participacoes SA, controlled by businessman
Eike Batista, to suspend the development of three offshore oil
fields.

According to the minutes of the ANP meeting on Sept. 25, ANP has
requested that OGX files a development plan for the three oil
fields, The WSJ notes.  If OGX doesn't file the plan, ANP will
likely start an administrative process to terminate the concession
contract, according to The WSJ.

The WSJ relates that OGX wanted to suspend the development of its
Tubarao Tigre, Tubarao Areia and Tubarao Gato oil fields for five
years.  The request was made after OGX said there's no technology
currently available that would economically allow the development
of those fields back in July, The WSJ relays.

The WSJ discloses that disappointing output at OGX's Tubarao Azul
field -- currently OGX's only productive oil field, but which is
expected to be shut down sometime next year -- caused a crisis of
confidence that spread throughout Mr. Batista's interlinked group
of companies, raising concerns about the one-time billionaire's
ability to deliver concrete results.

The WSJ notes that OGX is looking for possible investors as it is
seeking debtor-in-possession financing, a special form of
financing usually provided to companies in financial distress, a
person familiar with the company said, adding that the company is
considering seeking court protection before the end of the month.

OGX said in a regulatory filing that it needs to consider all
legal measures to protect its interests and the continuity of its
business, the WSJ adds.

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.



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C A Y M A N  I S L A N D S
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ADLOGICA: Shareholder to Hear Wind-Up Report on Oct. 15
-------------------------------------------------------
The shareholder of Adlogica will receive, on Oct. 15, 2013, at
9:00 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Ramu Yalamanchi
          300 3rd Street, Apt. 402
          San Francisco, California 94107-1248


ALLEGRO OPTHALMICS: Shareholder to Hear Wind-Up Report on Oct. 15
-----------------------------------------------------------------
The shareholder of Allegro Opthalmics International will receive,
on Oct. 15, 2013, at 9:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

          Mark D. Kirshbaum
          200 Shasta Irvine, CA 92612-2223


CARLYLE HIGH: Shareholder to Hear Wind-Up Report on Nov. 1
----------------------------------------------------------
The shareholder of Carlyle High Yield Partners VI, Ltd. will
receive, on Nov. 1, 2013, at 11:15 a.m., the liquidator's report
on the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Intertrust SPV (Cayman) Limited
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9005
          Cayman Islands
          c/o Kim Charaman/Jennifer Chailler
          Telephone: (345) 943 3100


COSIMO (GP): Shareholders' Final Meeting Set for Oct. 28
--------------------------------------------------------
The shareholders of Cosimo (GP) Limited will hold their final
meeting on Oct. 28, 2013, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          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


DIAMOND STARS: Shareholder Receives Wind-Up Report
--------------------------------------------------
The shareholder of Diamond Stars Limited received on Sept. 30,
2013, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          Commerce Corporate Services Limited
          Telephone: 949 8666
          Facsimile: 949 0626
          P.O. Box 694 Grand Cayman
          Telephone: 949 8666
          Facsimile: 949 0626


GK FORTUNE: Shareholder to Hear Wind-Up Report on Nov. 1
--------------------------------------------------------
The shareholder of GK Fortune Holdings Inc. will receive, on
Nov. 1, 2013, at 11:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

          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


GLOBAL INTERNATIONAL: Members' Final Meeting Set for Oct. 15
------------------------------------------------------------
The members of Global International Vessels, Ltd will hold their
final meeting on Oct. 15, 2013, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Michael Csizmadia
          c/o Ruth Hatt
          Travers Thorp Alberga
          Harbour Place 2nd Floor
          103 South Church Street
          Grand Cayman KY1-1106
          Cayman Islands
          11700 Katy Freeway
          Suite 150 Houston
          TX  77079 USA


MULTI BANKING: Shareholders' Final Meeting Set for Oct. 31
----------------------------------------------------------
The shareholders of Multi Banking Corporation (Overseas) Limited
will hold their final meeting on Oct. 31, 2013, at 11:30 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Trident Liquidators (Cayman) Limited
          Randal Daije
          Telephone: (345) 914 5353/ (345) 949 0880
          Facsimile: (345) 949 0881
          e-mail: rdaije@naleil.net
          P.O. Box 847, George Town
          Grand Cayman KY1-1103
          Cayman Islands


THAI INVESTOR IX: Members' Final Meeting Set for Oct. 15
--------------------------------------------------------
The members of Thai Investor IX Inc. will hold their final meeting
on Oct. 15, 2013, at 11:00 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Krys Global VL Services Limited
          KRyS Global
          Governor's Square, Building 6, 2nd Floor
          23 Lime Tree Bay Avenue
          P.O. Box 21237 Grand Cayman KY1-1205
          Cayman Islands
          Telephone: +1 (345) 947 4700
          Facsimile: +1 (345) 946 6728


THAI INVESTOR X: Members' Final Meeting Set for Oct. 15
-------------------------------------------------------
The members of Thai Investor X Inc. will hold their final meeting
on Oct. 15, 2013, at 11:15 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Krys Global VL Services Limited
          KRyS Global
          Governor's Square, Building 6, 2nd Floor
          23 Lime Tree Bay Avenue
          P.O. Box 21237 Grand Cayman KY1-1205
          Cayman Islands
          Telephone: +1 (345) 947 4700
          Facsimile: +1 (345) 946 6728


TRIAGE OFFSHORE: Shareholders' Final Meeting Set for Oct. 18
------------------------------------------------------------
The shareholders of Triage Offshore Fund, Ltd. will hold their
final meeting on Oct. 18, 2013, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Mourant Ozannes Cayman Liquidators Limited
          94 Solaris Avenue
          Camana Bay
          P.O. Box 1348 Grand Cayman KY1-1108
          Cayman Islands


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C H I L E
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INVERSIONES ALSACIA: Supplements Consent Solicitation Statement
---------------------------------------------------------------
Inversiones Alsacia S.A. on Oct. 3 disclosed that it is
supplementing its Amended and Restated Consent Solicitation
Statement dated September 25, 2013 and its accompanying consent
form, to (i) extend the expiration date of the consent
solicitation to Wednesday, October 9, 2013, and (ii) make changes
to the proposed waiver and accompanying disclosures relating to
the Debt Service Coverage Ratio and the potential contribution by
Alsacia's controlling stockholder.

Holders are urged to read the supplement in its entirety as it
contains important information about the consent solicitation.
The supplement is being distributed to bondholders through the
DTC's LENS system and can also be obtained upon request from
Alsacia.

                          About Alsacia

Alsacia, together with its affiliate, Express de Santiago Uno
S.A., are collectively the largest operator in the Transantiago
Transportation System, transporting approximately 1.2 million
passengers every day, throughout 35 communities in Santiago, which
accounts for more than 30% of the passengers in Transantiago.
Alsacia and Express belong to an international holding company
with interests in public passenger transportation, environmental
solutions, outsourcing services and real estate development in
Chile, Colombia, Panama, Peru and the United States.



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D O M I N I C A N   R E P U B L I C
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XSTRATA FALCONDO: Miners Protest, 10,000 Jobs at Risk Amid Closure
------------------------------------------------------------------
Dominican Today reports that Xstrata Falcondo mine workers marched
to Congress on Oct. 3 to protest the mine's temporary shutdown,
and complained that more than 10,000 people will lose their jobs.

Protest spokesman Raffy Bueno demanded the truth about Falcondo
which in his view is a responsible company and that its planned
mine at Loma Miranda is feasible, according to Dominican Today.

The report notes that Mr. Bueno said the authorities must take
into account the situation Falcondo's employees and their families
will face.

For Rafael - Pepe - Abreu, president of the Labor Unions Council,
Dominican Republic should seek out the formulas being applied to
exploit the mineral deposits worldwide, the report relates.

Mr. Abreu said Loma Miranda could be exploited without harming
environment, adding nonetheless that labor will fight to protect
the rights of the company's workers, the report relays.



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J A M A I C A
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* JAMAICA: Shortage of Foreign Currency Affecting Large Buyers
--------------------------------------------------------------
RJR News says that reports are circulating in the private sector
of a tightening in the availability of foreign currency in the
financial system.  This is said to have resulted in a spike in the
trading rate to large buyers, according to RJR News.

RJR News notes that Jamaica Broilers confirmed that it has
experienced challenges in accessing US dollar.

"The official rate is probably just about J$104 to US$1.  However
we are actually finding it quite difficult to get the quantum of
US (dollar) that we really require and as a result we are actually
buying US dollar at a price that is significantly above that J$104
to US$1," the report quoted Ian Parsard, vice president of Jamaica
Broilers as saying.



=====================
P U E R T O   R I C O
=====================


DORAL FINANCIAL: Moody's Lowers Sr. Unsecured Rating to 'Caa3'
--------------------------------------------------------------
Moody's Investors Service downgraded the senior unsecured rating
of Doral Financial Corporation to Caa3 from Caa1. Doral
Financial's rating outlook remains negative. Doral Financial's
lead bank, Doral Bank, is unrated. The rating agency also
downgraded the senior secured bonds (CUSIPs 74527BLB8, 74527BLC6,
74527BLD4, and 74527BSL9) issued by Doral Properties, Inc. through
the Puerto Rico Industrial, Tourist, Educational, Medical and
Environmental Control Facilities Financing Authority (AFICA) to
Caa3 from Caa1.  Doral Properties, Inc. is a wholly-owned
subsidiary of Doral Financial, which is legally responsible for
the payments on the AFICA bonds that are currently outstanding.

Moody's also took the following actions today:

- Banco Santander Puerto Rico (BSPR): Affirmed all ratings
(deposits Baa1, standalone bank financial strength rating
(BFSR)/baseline credit assessment (BCA) D+/ba1). Rating outlook on
BSPR's standalone BFSR/BCA changed to negative from stable. Stable
outlook maintained on the bank's supported deposit and debt
ratings. BSPR's deposit and debt ratings benefit from uplift
because the bank has a higher-rated US affiliate, Sovereign Bank
(deposits Baa1 stable, standalone BFSR/BCA C-/baa1 stable).
Moody's believes that within a US banking family, the deposit
ratings of affiliates should be equalized because of regulatory
powers afforded by the cross-indemnification provisions of the
Federal Deposit Insurance Act.

- Popular, Inc. (Popular) and its subsidiaries: Affirmed all
ratings (lead bank deposits Ba2, standalone BFSR/BCA D/ba2).
Rating outlook changed to negative from stable.

- FirstBank Puerto Rico (FirstBank): Affirmed all ratings
(deposits B2, standalone BFSR/BCA E+/b2). Rating outlook changed
to negative from stable.

Ratings Rationale:

Moody's said the downgrade of Doral Financial's senior unsecured
rating was driven by the company's extremely weak financial
condition.  Doral Financial's credit profile reflects very poor
asset quality, weak capital, and a funding profile that is highly-
dependent on non-core sources.

Doral Financial's poor asset quality is evidenced by its extremely
high level of non-performing assets (NPAs), which Moody's defines
as non-accrual loans, loans past due 90 days or more and still
accruing, all restructured loans, and other real estate owned
(OREO). At 30 June 2013, Doral Financial's NPAs represented 19% of
loans plus OREO and 249% of tier 1 common equity plus reserves.
These ratios are by far the weakest of any rated Puerto Rican
bank. Moreover, there is little likelihood of significant
improvement in the company's asset quality given Puerto Rico's
very weak economy. This will place further negative pressure on
the company's already-weak capital position. At 30 June, Doral
Financial's tier 1 common ratio was a low 5.99%.

Moody's added that Doral Financial is highly-dependent on non-core
funding, such as brokered deposits. At 30 June, brokered deposits
accounted for 36% of total deposits and core deposits only funded
31% of total loans.

The negative outlooks on the ratings of BSPR, Popular and
FirstBank reflect the continued weakening of Puerto Rico's
already-poor economy, which is in the midst of a protracted
recession that began in 2006.

The economy is challenged by high unemployment, low workforce
participation, high poverty levels compared to the US mainland, a
declining population, and weakness in its key pharmaceutical
sector.

Continued weakening is evidenced by the recent increase in the
unemployment rate to 13.9% in August 2013 and the higher-than
expected 5% year-over-year decline in the Government Development
Bank for Puerto Rico's Economic Activity Index, which is a good
proxy for the health of the Puerto Rican economy.

Moreover, the prospects for a sustainable recovery are constrained
by the commonwealth's poor finances. The commonwealth is
challenged by a very large unfunded pension liability even after
recently-enacted reforms, and an increasingly heavy debt load. The
commonwealth also has a high dependence on capital markets
financing that has led to increased refinancing risk and reduced
financial flexibility as it waits out currently-volatile market
conditions.

Actions to address the commonwealth's fiscal problems will likely
put additional stress on the economy. This will continue to
threaten the health of the banking system. The banks' NPAs remain
extremely high relative to US mainland banks, which could lead to
significant losses if conditions do not improve.

The recent market volatility also creates uncertainties for the
Puerto Rican banking system. Although the banks' deposit flows
have been steady during this period of heightened volatility,
ongoing volatility could put additional stress on funding profiles
that tend to be weaker than US mainland banks.

Following the ratings actions, the negative outlooks on the
ratings of BSPR, Popular, FirstBank, and Doral are consistent with
the negative outlook on the commonwealth.  Moody's affirmed Puerto
Rico's Baa3 government obligation rating on October 3, 2013 (see
press release  "Moody's affirms Puerto Rico general obligation
bonds at Baa3; affirms notched and related debt as well.")

The principal methodology used in these rating were Global Banks
published in May 2013.


* PUERTO RICO: Lawyers, Experts Predict Restructuring of Bonds
--------------------------------------------------------------
An article by Emily Glazer of The Wall Street Journal relates that
while no action seems imminent, many lawyers and other experts on
distressed debt predict that at least some of Puerto Rico's
outstanding bonds eventually will be restructured. That could mean
changes to interest rates or to the amount of time Puerto Rico has
to repay.  The tipping point will likely come if Puerto Rico runs
out of money to cover debt payments and can't refinance with new
bonds. Puerto Rico has cut back on its bond-issuance plans and is
turning to banks for short-term loans.

The article says Puerto Rico is not eligible to seek creditor
protection under Chapter 9 of the U.S. Bankruptcy Code, which is
only for municipalities.  Puerto Rico is an unincorporated
territory.  According to the article, which was presented as a
question-and-answer segment, some experts said it might be
possible to at least try restructuring some of Puerto Rico's debt
in Chapter 9 or Chapter 11, the part of bankruptcy companies use
to reorganize.  For example, some bond issuers in Puerto Rico are
classified as "semi-autonomous authorities," possibly giving them
a loophole to seek protection from certain obligations, lawyers
said.


* PUERTO RICO: Debt Troubles U.S. Regulators
--------------------------------------------
Mike Cherney, writing for the Wall Street Journal, reports that
U.S. government officials are becoming more concerned about Puerto
Rico's deepening economic and financial woes -- and their risks
for American investors.

An index that tracks bonds issued by Puerto Rico is down more than
18% so far this year, and leaders have put off selling new bonds
while they work to restructure some of the island's troubled
finances, according to the Wall Street Journal.

As a result, officials at the White House, Treasury Department and
Federal Reserve have been meeting to discuss the matter and to
assess the potential consequences for the overall municipal-bond
market, unnamed sources said, the WSJ notes.

The WSJ discloses that few analysts and investors expect Puerto
Rico to renege on its obligations anytime soon.  But it owes about
US$70 billion on its bonds, has a credit rating just one notch
above junk status and is having trouble attracting investors
because of its budget deficit and high unemployment, the WSJ
relays.

For decades, the WSJ notes, Puerto Rico was a bedrock investment
in many municipal-bond portfolios, its bonds owned directly or
through mutual funds.   The biggest reason: Unlike most other
municipal bonds, interest on Puerto Rico's debt is free from
local, state and U.S. income taxes, the WSJ relates.

About three-fourths of all municipal-bond mutual funds own debt
issued by Puerto Rico, according to Morningstar Inc, the WSJ
report notes.

Ingrid Vila, chief of staff to Puerto Rico Gov. Alejandro Garcia
Padilla, said officials are working closely with the Treasury
Department and the President's Task Force on Puerto Rico's Status,
an advisory group that includes representatives of Cabinet-level
agencies, the WSJ says. "There have been many conversations from
January until now," the WSJ quoted Ms. Vila as saying.

The WSJ notes that a Treasury spokeswoman said: "Given the
potential for Puerto Rico's financial challenges to impact U.S.
markets, including the municipal market, Treasury continues to
closely monitor developments."

The White House advisory group is coordinating with other federal
agencies "to make sure that federal resources are fully utilized
for maximum impact for the people of Puerto Rico," one senior
Obama administration official said, the WSJ relays.

The WSJ discloses that Puerto Rico's debt load -- gigantic
compared with the roughly US$18 billion owed by Detroit when it
filed in July for the largest municipal bankruptcy in U.S. history
-- also was discussed at a recent meeting of Treasury officials
and Municipal Market Advisors, a widely followed municipal-bond
research firm.  Analysts there have said they believe U.S.
officials are looking for ways to help, the WSJ says.

The WSJ relays that no decisions have been made, and there is
reluctance to throw Puerto Rico any lifeline that might be seen as
a precedent for rescues of financially troubled states or cities,
these people said.  Still, this year's slide in Puerto Rico bond
prices and the island's chronic financial troubles have grown too
big to ignore, the WSJ discloses.

The Wall Street Journal reported in September that some large
securities firms are limiting access to Puerto Rico bonds amid
deepening unease about its financial health.

Mutual funds with especially big exposure to Puerto Rico have
suffered overall losses ranging from 5% to more than 10% of their
overall asset value so far this year, the WSJ relays.

The WSJ notes that steeper losses are likely if credit-rating
firms follow through on their warnings that Puerto Rico could be
cut to junk-bond status.  Puerto Rico has an overall credit rating
of triple-B-minus from Standard & Poor's Ratings Services.

The US$3.7 trillion municipal-bond market usually is a safe haven
from the ups and downs of stocks and other bonds, the WSJ
discloses.  But Puerto Rico is deepening jitters fueled by the
recent jump in interest rates on U.S. Treasury securities and
Detroit's bankruptcy filing, the WSJ says.

Puerto Rico isn't allowed under U.S. law to file for municipal
bankruptcy protection.

The WSJ notes that Puerto Rico's economy has been in decline for
several years, hurt by tax breaks that attracted U.S. companies
for decades but ended in 2006.  As of August, the unemployment
rate was 13.9%, higher than any U.S. state.

Its three pension systems amassed less than 10% of the money
needed to meet future obligations, according to the island's
latest official financial report, the WSJ relays.  The report
covered the fiscal year ended in June 2012.

Investors are so skittish that Puerto Rico has cut back its bond-
issuance plans -- and is turning to banks for short-term loans,
the WSJ discloses.

In the past few weeks, the WSJ notes that Puerto Rico officials
have told credit-rating firms that the island is making progress
by reducing its budget deficit this year, cutting benefits to some
retirees and hiking taxes to bring in more revenue.

The WSJ relays that seven OppenheimerFunds Inc. municipal-bond
funds named after Arizona, Massachusetts, North Carolina and other
states have roughly 25% to 33% of their total portfolios in Puerto
Rico bonds, according to Morningstar.  OppenheimerFunds is a unit
of Massachusetts Mutual Life Insurance Co.

U.S. securities regulators allow such single-state funds to buy
lots of Puerto Rico bonds as long as they are disclosed in
customer prospectuses and meet certain tax criteria, the WSJ
discloses.

Dan Loughran, senior vice president and senior portfolio manager
at the Rochester municipal group unit of OppenheimerFunds, said
Puerto Rico's finances are moving in the right direction and there
is no need to reverse the unit's investment strategy, the WSJ
adds.



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


CARIBBEAN AIRLINES: Looks to Jamaica to Fill Keys Posts
-------------------------------------------------------
RJR News reports that Caribbean Airlines Limited has turned to
Jamaica as it tries to find a new chief executive officer.

The air carrier has advertised the post locally with less than
three weeks to go before the October 25 deadline for persons to
submit their resumes, according to RJR News.  In an advertisement
in the two Jamaican daily newspapers on Oct. 6, the new Caribbean
Airlines boss will, among other things, be required to turn around
the entity's performance, RJR News relates.

The report notes that acting Chief Executive Officer of Caribbean
Airlines, Robert Corbie, resigned suddenly in July.  Vice
President, Captain Jagmohan Singh, was appointed to oversee day-
to-day operations, the report relates.

The report discloses that in the newspaper advertisement CAL also
sought applications for the posts of Chief Financial Officer and
Vice President for Commercial and Customer Experience.

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.



                    ***********


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

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

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


                            ***********


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

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

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

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

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

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


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