TCRLA_Public/131017.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 17, 2013, Vol. 14, No. 206


                            Headlines



B R A Z I L

DESENVIX ENERGIAS: Moody's Cuts Corp. Family Rating to 'B1'
MMX MINERACAO: In Deal to Sell Port Stake to Trafigura, Mubadala
OGX PETROLEO: Speculations Emerge of Owner to Cede Control of Firm
OGX PETROLEO: Seeks to Preserve Fields Amid Restructuring


C A Y M A N  I S L A N D S

ARAB ISLAMIC: Commences Liquidation Proceedings
BLUE RIDGE: Placed Under Voluntary Wind-Up
BTR ARBITRAGE: Creditors' Proofs of Debt Due Oct. 29
BTR GLOBAL: Creditors' Proofs of Debt Due Oct. 29
BTR OPPORTUNITY: Creditors' Proofs of Debt Due Oct. 29

EXPEDITION MASTER: Creditors' Proofs of Debt Due Nov. 7
FLATIRON STRATEGIC: Creditors' Proofs of Debt Due Nov. 7
GLOBAL MANAGEMENT: Creditors' Proofs of Debt Due Nov. 6
IBIS RE: Creditors' Proofs of Debt Due Oct. 28
INDOCEMENT (CI): Creditors' Proofs of Debt Due Oct. 28

PRIQUAM ADVISORY: Creditors' Proofs of Debt Due Oct. 21
SC INDIA: Creditors' Proofs of Debt Due Oct. 29
SG S&P: Commences Liquidation Proceedings


P U E R T O   R I C O

EL VOCERO: Attorneys Seek to Sell Business, Defends Sale Maneuver


S T.   L U C I A

* ST. LUCIA: Chamber of Commerce Unsurprised by Unemployment Rate


T R I N I D A D  &  T O B A G O

CARLTON SAVANNAH: First Citizens Places Hotel in Receivership


V E N E Z U E L A

PETROLEOS DE VENEZUELA: S&P Affirms 'B' Corporate Credit Rating


X X X X X X X X X

* Latam Bank Credit Quality Manageable Despite Economic Challenges
* Upcoming Meetings, Conferences and Seminars


                            - - - - -


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B R A Z I L
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DESENVIX ENERGIAS: Moody's Cuts Corp. Family Rating to 'B1'
-----------------------------------------------------------
Moody's America Latina Ltda (Moody's) downgraded Desenvix Energias
Renovaveis S.A. (Desenvix)'s corporate family rating to B1 from
Ba3 on the global scale and to Baa1.br from A2.br on the Brazilian
national scale.

At the same time, Moody's downgraded Desenvix's 4-year amortizing
BRL 100 million debentures expiring on December 12, 2016 to B2
from B1 on the global scale and to Baa3.br from Baa1.br on the
Brazilian national scale.  The outlook is negative for all ratings

This rating action concludes the rating action initiated on June
28, 2013 when Moody's placed Desenvix's ratings under review for
possible downgrade.

RATINGS RATIONALE

The downgrade of Desenvix's corporate family ratings reflects the
company's current inadequate liquidity position along with weaker
credit metrics than Moody's had previously anticipated, and which
Moody's does not expect to change materially over the next couple
of years.

Moody's projects that Desenvix's consolidated credit metrics will
now for the most part be more commensurate with the low end of the
B rating category during this period in accordance with Moody's
rating methodology "Unregulated Utilities and Power Companies".

The negative outlook reflects uncertainties over the risks
associated with cash from operations that is expected to be lower
than previously projected vis--vis a potential increase in
unexpected short-term cash outlays. Immediate short-term cash
needs could stem from the settlement of an existing liability with
one of its suppliers and potential penalties imposed by the
regulator at the level of one of its subsidiaries, Enercasa
Energetica S.A. (Enercasa).

Pressure could build to stabilize the outlook should Desenvix
improve its liquidity position by lengthening its debt profile and
achieve an increase in its operating margin through greater asset
utilization while managing its capital expenditures and the
payment of dividends prudently so that its credit metrics do not
deteriorate further.

Moody's will consider a downgrade rating action if Desenvix does
not improve its liquidity position either by securing timely and
adequate long-term funding or eventually obtaining new financial
resources, either from divesting some existing operations or
concluding some kind of additional equity arrangement.

The potential imposition of penalties by the regulator at the
level of Enercasa could also trigger a rating downgrade, depending
on the magnitude of the penalty. Such an action would be likely
should Moody's projections indicate that Desenvix's consolidated
CFO Pre-WC over debt ratio will remain below 5% and at the same
time the interest coverage ratio will stay lower than 1.5x for a
prolonged period.

Desenvix is a holding company controlled through a shareholding
agreement among Jackson Empreendimentos Ltda (not rated), through
the equity fund FIP Cevix, with 40.65% of Desenvix's voting and
total capital; SN Power, which holds 40.65% of the company's
voting and total capital; and the pension fund FUNCEF, which holds
the remaining 18.7% of the company's voting and total capital. SN
Power is a holding company controlled by two Norwegian companies,
Statkraft (60%; Baa1, stable) and Norfund (40%).

Desenvix holds interests in 15 power plants with a total installed
capacity of 349 MW, consisting of 10 small and medium sized hydro-
power plants, one biomass plant and four wind power plants. In
addition, Desenvix holds 25.5% of two transmission projects for
the construction of 511 kilometers of transmission lines. Desenvix
is also engaged in the development of two hydro-power projects
with total installed capacity of 45 MW and a 30 MW wind power
plant.


MMX MINERACAO: In Deal to Sell Port Stake to Trafigura, Mubadala
----------------------------------------------------------------
Matthew Cowley at the Wall Street Journal reports that Brazilian
tycoon Eike Batista has signed a definitive agreement to sell a
majority stake in another of his key assets as he advances a plan
to shore up his heavily indebted companies.

Mining company MMX Mineracao e Metalicos SA, which is controlled
by Mr. Batista, said that Abu Dhabi's Mubadala Development Co.,
already a big investor in Mr. Batista's industrial group, and
commodities trader Trafigura Group have agreed to pay US$400
million to buy a majority stake in a port in Itaguai, in the south
of Rio de Janeiro state, according to the WSJ.

The report notes that it's the latest sale by Mr. Batista, who has
seen his personal wealth collapse as a result of the financial and
operational troubles faced by his group of companies.  One of the
richest men in the world just over a year ago, with an estimated
fortune of more than US$30 billion, Mr. Batista is now off the
billionaires' list altogether, the report notes.

The report relates that Trafigura and Mubadala have agreed to buy
65% of MMX Porto Sudeste Ltda, and MMX will retain the remaining
35% stake.  The port company will also take on BRL1.3 billion
Brazilian (US$598 million) in debts owed by one of MMX's mining
subsidiaries, the report says.

The report relays that construction of the port, known as
Superporto Sudeste, began in July 2010, and it's expected to begin
operations in mid-2014, with an initial capacity to handle 50
million tons of iron ore per year.

The report notes that the latest sale is evidence that some parts
of Mr. Batista's floundering empire still have some value.  The
group began to unravel in mid-2012, after the flagship oil
company, OGX Petroleo e Gas Participacoes SA, began to show signs
that it wouldn't be able to live up to promises on oil production,
the report discloses.

The report relays that OGX has since said that it has halted
development of most of its oil fields.  The firm is negotiating
the restructuring of some US$3.6 billion in bonds, having
defaulted on a US$45 million payment at the beginning of October,
the report notes.

The report relates that OGX's troubles shattered much of the
confidence across much of Mr. Batista's interlocking industrial
group.  Many of the companies are capital-intensive startups that
have yet to turn a profit, the report notes.

The report adds that Mubadala itself has already invested around
$1.5 billion in Mr. Batista's holding company EBX.


OGX PETROLEO: Speculations Emerge of Owner to Cede Control of Firm
------------------------------------------------------------------
Peter Millard at Bloomberg News reports that speculation has
emerged that Eike Batista, owner of OGX Petroleo & Gas
Participacoes SA, will cede control of the company as the former
billionaire's mining unit sold assets.

Investor website InfoMoney said speculations have emerged that Mr.
Batista, who missed a series of production targets and lost about
US$30 billion of his fortune in the past year, would leave the
company he founded in a possible agreement with creditors,
according to Bloomberg News.

"There's a lot of noise in the market, and one possibility is Eike
leaving the controlling group," Bloomberg News quoted Lucas
Brendler, who helps manage about BRL4 billion (US$1.8 billion) at
Geracao Futuro Corretora in Porto Alegre, Brazil, as saying. "The
creditors would probably like to see him out of the company and go
on dealing with the executives.  Having Eike out would be the
start of finding a way out," he added.

Bloomberg News notes that OGX Chief Executive Officer Luiz
Carneiro said Sept. 13 that Batista may lose control of OGX as
part of a debt restructuring.

The oil producer, once the centerpiece in Batista's commodities
group, missed a US$45 million Oct. 1 bond payment that puts him on
the brink of Latin America's biggest corporate default, Bloomberg
News relays.

                           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: Seeks to Preserve Fields Amid Restructuring
---------------------------------------------------------
Luciana Magalhaes at Daily Bankruptcy Review reports that
distressed Brazilian oil company OGX Petroleo e Gas Participacoes
SA is trying to preserve most of its current oil field portfolio
while it rushes to find a negotiated solution for US$3.6 billion
in debt.

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

                          *     *     *

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


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


ARAB ISLAMIC: Commences Liquidation Proceedings
-----------------------------------------------
On Sept. 12, 2013, the shareholders of Arab Islamic Gateway Fund
Ltd resolved to voluntarily liquidate the company's business.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          Ghassan Hitti
          c/o Alan de Saram
          Telephone: 949 4544
          Facsimile: 949 8460
          CARD Corporate Services Ltd.
          Zephyr House, 122 Mary Street
          P.O. Box 709, George Town Grand Cayman
          Cayman Islands


BLUE RIDGE: Placed Under Voluntary Wind-Up
------------------------------------------
On Sept. 20, 2013, the members of Blue Ridge China Dfss Holdings
resolved to voluntarily wind up the company's operations.

The company's liquidators are:

          Christopher Kennedy
          Matthew Wright of RHSW (Cayman) Limited
          PO Box 897, Windward 1
          Regatta Office Park, West Bay Road
          Grand Cayman KY1-1103
          Cayman Islands


BTR ARBITRAGE: Creditors' Proofs of Debt Due Oct. 29
----------------------------------------------------
The creditors of BTR Global Arbitrage Trading Limited are required
to file their proofs of debt by Oct. 29, 2013, to be included in
the company's dividend distribution.

The company commenced wind-up proceedings on Sept. 26, 2013.

The company's liquidator is:

          Ogier
          c/o Jonathan Turnham
          Telephone: (345) 815 1839
          Facsimile: (345) 949 9877
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9007
          Cayman Islands


BTR GLOBAL: Creditors' Proofs of Debt Due Oct. 29
-------------------------------------------------
The creditors of BTR Global Prospector Trading Limited are
required to file their proofs of debt by Oct. 29, 2013, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on Sept. 26, 2013.

The company's liquidator is:

          Ogier
          c/o Jonathan Turnham
          Telephone: (345) 815 1839
          Facsimile: (345) 949 9877
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9007
          Cayman Islands


BTR OPPORTUNITY: Creditors' Proofs of Debt Due Oct. 29
------------------------------------------------------
The creditors of BTR Global Opportunity Trading Limited are
required to file their proofs of debt by Oct. 29, 2013, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on Sept. 26, 2013.

The company's liquidator is:

          Ogier
          c/o Jonathan Turnham
          Telephone: (345) 815 1839
          Facsimile: (345) 949 9877
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9007
          Cayman Islands


EXPEDITION MASTER: Creditors' Proofs of Debt Due Nov. 7
-------------------------------------------------------
The creditors of Expedition Master Fund Limited are required to
file their proofs of debt by Nov. 7, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Sept. 24, 2013.

The company's liquidator is:

          DMS Corporate Services Ltd
          c/o Nicola Cowan
          Telephone: (345) 946 7665
          Facsimile: (345) 949 2877
          dms House, 2nd Floor
          P.O. Box 1344 Grand Cayman KY1-1108
          Cayman Islands


FLATIRON STRATEGIC: Creditors' Proofs of Debt Due Nov. 7
--------------------------------------------------------
The creditors of Flatiron Strategic Yield Ltd are required to file
their proofs of debt by Nov. 7, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Sept. 25, 2013.

The company's liquidator is:

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


GLOBAL MANAGEMENT: Creditors' Proofs of Debt Due Nov. 6
-------------------------------------------------------
The creditors of Global Management Group Inc are required to file
their proofs of debt by Nov. 6, 2013, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Sept. 25, 2013.

The company's liquidator is:

          Marcelo Aubone
          Gurruchaga 830 5th Floor
          Buenos Aires
          Argentina
          Telephone: +5411 4129 8801


IBIS RE: Creditors' Proofs of Debt Due Oct. 28
----------------------------------------------
The creditors of Ibis Re Ltd. are required to file their proofs of
debt by Oct. 28, 2013, to be included in the company's dividend
distribution.

The company commenced liquidation proceedings on Sept. 26, 2013.

The company's liquidator is:

         Carl Gosselin
         Wilmington Trust (Cayman), Ltd.
         P.O. Box 32322 Grand Cayman KY1-1209
         Cayman Islands
         Telephone: (345) 640 6712


INDOCEMENT (CI): Creditors' Proofs of Debt Due Oct. 28
------------------------------------------------------
The creditors of Indocement (CI) Ltd are required to file their
proofs of debt by Oct. 28, 2013, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on Sept. 26, 2013.

The company's liquidators are:

          Daniel Lavalle
          Tju Lie Sukanto
          Wilmington Trust Corporate Services (Cayman) Limited
          P.O. Box 32322 Grand Cayman KY1-1209
          Cayman Islands
          Attn.: Carl Gosselin, Agent
          Telephone: (345) 640 6712


PRIQUAM ADVISORY: Creditors' Proofs of Debt Due Oct. 21
-------------------------------------------------------
The creditors of Priquam Advisory Limited are required to file
their proofs of debt by Oct. 21, 2013, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on Sept. 25, 2013.

The company's liquidator is:

          Appleby Trust (Cayman) Ltd.
          Clifton House, 75 Fort Street
          PO Box 1350, Grand Cayman KY1-1108
          Cayman Islands


SC INDIA: Creditors' Proofs of Debt Due Oct. 29
-----------------------------------------------
The creditors of SC India Holdings Limited are required to file
their proofs of debt by Oct. 29, 2013, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on Sept. 27, 2013.

The company's liquidator is:

          Gene Dacosta
          Telephone: (345) 945 3901
          Facsimile: (345) 945 3902
          P.O. Box 2681 Grand Cayman KY1-1111
          Cayman Islands


SG S&P: Commences Liquidation Proceedings
-----------------------------------------
On Sept. 12, 2013, the shareholders of SG S&P IFCI UAE Price
Return Fund Ltd. resolved to voluntarily liquidate the company's
business.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          Ghassan Hitti
          c/o Alan de Saram
          Telephone: 949 4544
          Facsimile: 949 8460
          CARD Corporate Services Ltd.
          Zephyr House, 122 Mary Street
          P.O. Box 709, George Town Grand Cayman
          Cayman Islands


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P U E R T O   R I C O
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EL VOCERO: Attorneys Seek to Sell Business, Defends Sale Maneuver
------------------------------------------------------------------
Katy Stech at the Wall Street Journal reports that Puerto Rico's
struggling Spanish-language newspaper El Vocero has a survival
strategy to avoid becoming yet another victim of the consolidation
wave sweeping the media industry.

Attorneys who put the daily newspaper into bankruptcy in September
want to sell it but with a controversial restriction: they want
the power to throw out bids from investors who already own other
newspapers on the island, according to the WSJ.

That proposed rule, which needs approval from a bankruptcy judge,
would block offers from the influential Ferre family that controls
the competing El Nuevo Dia newspaper, preventing them from buying
El Vocero and either shutting it down or creating "an illegal
monopoly," said El Vocero president Peter Miller in court papers,
the report notes.

"The inability to continue publishing El Vocero could jeopardize
the vigorous exercise of the freedom of the press and the freedom
of speech guaranteed by the First Amendment of the Constitution of
the United States. . . . Should El Vocero disappear, it would
essentially mean that Puerto Rico would be receiving its news from
only one daily newspaper, certainly not something that anyone
desires," the newspaper's attorneys wrote in court papers, the
report relates.

The WSJ discloses that El Vocero has already found a roughly US$3
million offer from investors who were brought together by Mr.
Miller's second cousin, Raul Betancourt.  Under the deal, the
report notes, Mr. Betancourt would purchase a minority stake in
the newspaper, its attorney said in an email to Bankruptcy Beat.

The report relays that newspaper officials have proposed to hold a
Nov. 4 auction to see if other bidders can top that initial offer.
But the proposed ban on other players on the Puerto Rican media
scene has rattled the island's tax authorities, who have been
trying to collect millions of dollars from the newspaper, the WSJ
discloses.

In court papers, attorneys hired by the island's tax department
accused newspaper officials of favoring the insider investor group
when they should be encouraging higher offers, according to the
report.   A larger purchase price would give the newspaper more
money to pay off its debts, including more than US$30 million in
local and federal taxes, the report says.

The report notes that Mr. Miller later distanced himself from the
investor group.

The report relates that Mr. Miller also pointed out that he asked
other potential investors to consider purchasing the paper,
including former New York Daily News co-owner Mr. Fred Drasner and
the investment firm behind Puerto Rico's Channel 5 television
station.

The report said that both groups was to head to Bankruptcy Judge
Mildred Caban's courtroom in Old San Juan on Oct. 14 to argue over
whether the newspaper's proposed auction rules are fair.

The WSJ discloses that attorneys put El Vocero into bankruptcy on
Sept. 20 after more than a decade of struggles.  In court papers,
newspaper officials blamed universal challenges that face the
print media industry: declining advertising revenue and increasing
paper and ink costs, the report says.

Founded in 1974, El Vocero grew to reach its circulation peak in
the early 1990s with about 270,000 daily editions before financial
troubles hit.

The report recalls that the company's El Mundo newspaper failed in
2000 after only a few years of publishing.  By the time that El
Vocero's founding editor Gaspar Roca died in 2007, the newspaper
was behind on its tax bill and hadn't been paying its paper
supplier on time, according to court papers, the report says.

In 2009, the newspaper's circulation department laid off 107 union
workers, triggering a National Labor Relations Board dispute that
could end up costing it more than US$10 million, according to
court papers, the report notes.

The WSJ adds that the last straw came when the union's pension
administrators asked a federal judge to force the newspaper to pay
up on delinquent pension contributions that, at one point, had
grown to more than US$435,000.


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


* ST. LUCIA: Chamber of Commerce Unsurprised by Unemployment Rate
-----------------------------------------------------------------
Caribbean 360 reports that the St. Lucia Chamber of Commerce said
the increase in the islands' unemployment rate should not come as
a surprise as the private sector body had been warning this was
inevitable given the country's worsening economic situation.

"Some four to five years ago with the onset of the recession the
Chamber and its membership did announce its intentions to maintain
levels of employment as best as they could and would not rush into
a rash of lay-offs, but would try to weather the storm. . . .
However one would admit that it has been quite an extended period
of economic slow-down and we have seen the natural effects of wear
and tear on businesses that have held out for a long period and
the situation is not improving," Caribbean 360 quoted Chamber
Executive Director as Brian Louisy saying.

Mr. Louisy, the report notes, said that despite the efforts of
private sectors to avoid lay-offs in the face of a protracted
recession, the worsening economic forecast has made streamlining a
matter of course for many businesses and that the eventual
decision to send workers home has turned out to be the difference
in keeping businesses operational.

The report discloses that the Chamber official contends that
redundancies were a natural consequence of doing business in a
drawn out recession.  But Mr. Louisy said he remains hopeful that
even in the face of an economic crisis some businesses may find
opportunities for investment, expansion and new business prospect,
the report relays.

The report notes that while not explicitly agreeing that the
implementation of the Value Added Tax (VAT) last October
contributed to the situation, he admits that the negative
implications of the tax across the various sectors cannot be
denied.

"I believe that the introduction of VAT does have a number of
effects and has caused a change in behavior among a cross section
of the population. . . . We are of the view that the manner in
which VAT was implemented may have contributed to the negative
implications we see across the country," the report quoted Mr.
Louisy as saying.

The report notes that the St. Lucia Employers Federation recently
called for a reduction in the VAT and Mr. Louisy said the Chamber
was open to any discussion on issues of national economic
development, including the current unemployment problem.

Mr. Louisy said that he hoped that the launch of the National
Productivity Council next week would provide an opportunity for
stakeholders to discuss the matter, the report adds.


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


CARLTON SAVANNAH: First Citizens Places Hotel in Receivership
-------------------------------------------------------------
Curtis Rampersad at Trinidad Express reports that State bank First
Citizens placed the Carlton Savannah hotel in receivership.

The Carlton Savannah has been in "semi-receivership" during the
past four years and although it has continued to operate, industry
sources said Oct. 9, according to Trinidad Express.

The hotel is adjacent to the Queen's Park Savannah in Port of
Spain.  It has 157 guest rooms and 51 suites.

The report notes that First Citizens said in a statement that it
was working with all stakeholders to ensure the "best possible
outcome for all concerned under the circumstances", the report
notes.

However, the hotel has struggled to turn a profit over the past
few years, leading to it being placed in receivership.

Sources close to The Carlton Savannah's operations told the
Trinidad Express in an interview that local minority shareholders
met with First Citizens and agreed that a receiver should be
appointed.   The report relates that two partners at audit and
consultancy network Deloitte in Port of Spain have been appointed
receivers.

Sources confirmed Oct. 9 that Carlton Savannah will continue to
operate as a going concern while possible sale options are looked
at, the report says.

A British company that was a primary shareholder pulled out of the
hotel several years ago, leaving several local minority
shareholders, the report recalls.  Private real estate investors
were sold suites at the hotel when it was opened, the report
relates.

Trinidad Express was informed that investors were refunded the
money they paid for the suites.  Management of the company's
operations are now being handled by the receiver and Carlton
Savannah transactions received after October 8 are only to be
processed at banks if they are authorized by the receiver,
Trinidad Express discloses.

The Carlton Savannah was fully finished in 2011 after two years of
battling cost overruns, the report adds.



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V E N E Z U E L A
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PETROLEOS DE VENEZUELA: S&P Affirms 'B' Corporate Credit Rating
---------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' foreign and
local currency corporate credit ratings on Petroleos de Venezuela
S.A. (PDVSA).  At the same time, S&P affirmed its 'B' senior
unsecured debt rating on the company.  The outlook remains
negative.  The affirmation follows S&P's regular annual review.

In addition, S&P revised its stand-alone credit profile (SACP) on
PDVSA to 'b' from 'b+'.  "The downward revision of PDVSA's SACP
reflects the rising business risk for PDVSA in light of heavy
government involvement in the energy sector which affects the
company's day-to-day operations amid increased country risk to
which the company is exposed following Venezuela's downgrade,"
said Standard & Poor's credit analyst Fabiola Ortiz.  S&P believes
that PDVSA's commitment to supply 450 million barrels per day
(mbpd) to cover the government's debt, coupled with a highly taxed
industry, underscores the government's heavy involvement in the
sector.  As a result, S&P believes that the company's SACP is
highly intertwined with the sovereign's credit quality.

"The ratings affirmation reflects our criteria on government-
related entities (GREs) and our view of an "almost certain"
likelihood of government extraordinary support to PDVSA under
financial distress scenarios, as well as extraordinary financial
burden under sovereign distress scenario.  This assessment is
based on PDVSA's "critical" role as it contributes about 50% of
Venezuela's revenues and 90% of its exports, and plays a key role
in meeting the sovereign's political and economic objectives and
its "integral" link with the government, given its full and stable
ownership of the company and high involvement in the day-to-day
operations," S&P said.


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


* Latam Bank Credit Quality Manageable Despite Economic Challenges
------------------------------------------------------------------
Latin American bank loan growth is expected to decelerate in 2013,
with nominal loan growth rates around 15 percent through 2014,
according to a new Fitch Ratings report.

"The main drivers of credit growth are consumption and investments
trends. The increases in average disposable income will bolster
the positive trend in consumer lending in countries like Panama
and Dominican Republic, while increases in foreign direct
investment, public and private infrastructure projects, and
exports may increase corporate lending in several countries," said
Marcela Galicia, Director.

Fitch continues to believe that loan portfolio deterioration could
be manageable despite the economic challenges foreseen in the
region. 'The majority of banking systems have enough capacity to
absorb potential losses and some reserve cushion was built due to
the higher credit costs in the current phase of the cycle and
conservative provisioning' according to Maria Rita Goncalves,
Senior Director.

Latin America's low banking penetration provides positive medium-
term prospects for continuous loan growth. In countries were
household debt levels may become a concern such as Brazil, more
balance between consumption and investment would foster more
consistent growth and asset quality.

Brazil's 90 days past due loans ratio will remain the highest in
the region, although there have been recent marginal improvements
in asset quality figures and provisioning should remain
conservative. Faster loan growth of state owned banks may result
in greater asset quality challenges compared to private
competitors. However, this asset quality divergence may reverse if
the potentially slower loan growth made by public banks
materializes in 2014.

Failures in the homebuilding sector and consumer loan
deterioration drove Mexico's delinquency ratios to a peak in June
2013. The effect of the worsening environment and credit costs
could be contained in the short term despite a slight decrease in
the reserve coverage ratio and the maintenance of Mexican banks
conservative charge off practices.


* 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.


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