/raid1/www/Hosts/bankrupt/TCRLA_Public/131213.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
Friday, December 13, 2013, Vol. 14, No. 247
Headlines
A R G E N T I N A
BUENOS ARIES: Moody's Puts B3 Rating to $400MM Class 5 Notes
ELECTRICIDAD ARGENTINA: S&P Withdraws CCC- Sr. Unsec. Debt Rating
MUNICIPALITY OF MENDOZA: Moody's Withdraws 'B3' GLC Ratings
B R A Z I L
CHEMICAL VIII: Moody's Assigns 'B2' Rating to Mezzanine Shares
OGX PETROLEO: Brazilian Regulators Probed Over Their Oversight
C A Y M A N I S L A N D S
AL-BAIT CORPORATION: Creditors' Proofs of Debt Due Dec. 19
ARGOS INVESTMENT: Commences Liquidation Proceedings
ARSENAL INVESTMENTS: Commences Liquidation Proceedings
CF FUND: Creditors' Proofs of Debt Due Dec. 18
FONDELEC E.E.E.G.P: Commences Liquidation Proceedings
GALENA INSURANCE: Creditors' Proofs of Debt Due Dec. 20
HTC CONSULTANCY: Commences Liquidation Proceedings
LEADUP RESOURCES: Commences Liquidation Proceedings
RAIN TREE FUND: Commences Liquidation Proceedings
RAIN TREE MASTER: Commences Liquidation Proceedings
RAIN TREE US: Commences Liquidation Proceedings
THE AVA: Placed Under Voluntary Wind-Up
THE RIVER: Placed Under Voluntary Wind-Up
WM INVESTMENTS: Commences Liquidation Proceedings
B O L I V I A
COMPANIA DE SEGUROS: Moody's Puts B3 GLC on Review for Upgrade
J A M A I C A
DIGICEL GROUP: Puts Price on Private Placement of $500MM Sr. Notes
DIGICEL GROUP: Moody's Affirms B2 CFR; Outlook Remains Stable
M E X I C O
BANCO INTERACCIONES: Moody's Withdraws Ba3 Sr. Debt. Ratings
BANCO INTERACCIONES: Moody's Withdraws 'Ba3' Deposit Ratings
BANCO SANTANDER: To Optimise its Capital Structure
BANCO SANTANDER: Moody's Rates $1BB Tier 2 Subordinated Notes Ba1
GRUMA SAB: Fitch Hikes Curr. IDRs & $300MM Bonds Rating to 'BB+'
HIPOTECARIA SU: S&P Affirms 'D' Ratings on 2 Classes of Notes
MAXCOM TELECOMUNICACIONES: Board OKs Appointment of PWC as Auditor
P E R U
VOLCAN COMPANIA: S&P Lowers Rating to 'BB+' & Removes from Watch
T R I N I D A D & T O B A G O
TRINIDAD CEMENT: T&T Court of Appeal Upholds Injunction
- - - - -
=================
A R G E N T I N A
=================
BUENOS ARIES: Moody's Puts B3 Rating to $400MM Class 5 Notes
------------------------------------------------------------
Moody's Latin America has assigned B3 global local currency rating
and A3.ar Argentina National Scale Rating to Class 5 notes for up
to USD400 million to be issued by the City of Buenos Aires under
the Local Financing Program.
The assigned ratings are in line with the city's local currency
debt ratings. The new Class 5 to be issued under the program, will
be subscribed and payable in Argentine pesos at the specified
exchange rate and sold in the local capital market. As a result,
the US dollar will be a currency of reference and not a means of
payment. For that reason, the transaction is considered to be
denominated in local currency.
Ratings Rationale:
The creation of the Local Financing Program has been authorized by
the Law 4315 of 2012 and Laws 4810 and 4885 of 2013. The notes to
be issued under the program constitute direct, unconditional,
unsecured and unsubordinated obligations of the city, ranking at
all times pari passu without any preference among themselves.
Classes 1, 2, 3 and 4 under this program have already been issued,
adding up USD501 million, and were all rated (P)B3 (global scale)
and A3.ar (Argentina National Scale).
Once issued, Class 5 will represent approximately 5% of the City's
total revenues for the current year, and the ratio of total debt
to total revenues will grow to 26% from 21% at the end of fiscal
year 2012.
According to the term sheet reviewed by Moody's, the City of
Buenos Aires will offer a fifth tranche of up to USD400 million
with an expected maturity of up to six years. These notes will pay
interest at a fixed rate.
The assigned ratings are in line with the city's B3 (global scale)
and A3.ar (Argentina National Scale) local currency debt ratings.
The rating level is also line with the B3 Sovereign rating. The
outlook is negative, reflecting the ongoing deterioration in
Argentina's operating environment, including a decelerating
economy and rising fiscal and foreign exchange pressures. Despite
the intrinsic financial characteristics of the City of Buenos
Aires, the lack of consistent and predictable policies at the
national level affects the institutional framework under which the
city operates and ultimately anchors its credit quality to that of
the Sovereign.
What Could Change the Rating Up/Down:
Moody's does not expect upward pressures on the City of Buenos
Aires' ratings in the near to medium term. The city could be
further downgraded if the negative outlook on the sovereign rating
materializes into a rating downgrade. Additionally, any action
taken by the central government that would negatively affect the
ability of the city to repay its financial obligations could lead
to a further downgrade. Moody's would view any such actions as
further illustration of a deteriorating institutional framework
and an unstable policy environment.
ELECTRICIDAD ARGENTINA: S&P Withdraws CCC- Sr. Unsec. Debt Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'CCC-' corporate
and senior unsecured debt ratings on Argentina-based holding
company Electricidad Argentina S.A. (EASA) at the company's
request.
MUNICIPALITY OF MENDOZA: Moody's Withdraws 'B3' GLC Ratings
-----------------------------------------------------------
Moody's Latin America has withdrawn the Municipality of Mendoza's
B3 global local currency and Baa1.ar national scale issuer ratings
with a negative outlook.
Ratings Rationale:
Moody's has withdrawn the rating for its own business reasons.
===========
B R A Z I L
===========
CHEMICAL VIII: Moody's Assigns 'B2' Rating to Mezzanine Shares
--------------------------------------------------------------
Moody's America Latina has assigned definitive ratings of Baa3
(sf) (Global Scale, Local Currency) and Aaa.br (sf) (Brazilian
National Scale) to the Senior Shares, and of B2 (sf) (Global
Scale, Local Currency) and Ba1.br (sf) (Brazilian National Scale)
to the Mezzanine Shares issued by Chemical VIII - FIDC Industria
Petroquimica, a securitization backed by a pool of trade
receivables and originated by Braskem Group.
Issuer: Chemical VIII - FIDC Industria Petroquimica (Chemical VIII
- FIDC)
Senior Shares - Baa3 (sf) (Global Scale, Local Currency) & Aaa.br
(sf) (Brazilian National Scale)
Subordinated Mezzanine Shares - B2 (sf) (Global Scale, Local
Currency) & Ba1.br (sf) (Brazilian National Scale)
Ratings Rationale:
The ratings are based on the following factors:
-- Credit enhancement in the form of senior subordination ranging
from a minimum of 9.09% to a maximum of 13.04% (coverage levels
equivalent to 110% and 115%) to mitigate losses due to obligor
default and/or dilution;
-- The eligibility criteria of the trade receivables, represented
by electronic invoices, to be acquired by the issuer, which
include concentration limits by client, delinquency by client, and
maximum term of the trade receivables. The maximum individual
obligor concentration limit is 3%;
-- Low and stable historical delinquency and dilution levels of
the sellers' trade receivable portfolio;
-- Very low commingling risk as payments by obligors are made to
the fund's segregated account maintained at Banco Bradesco (Baa1
Long-Term Bank Deposit Rating in the Global Scale, Local Currency
Scale & Aaa.br in the Brazilian National Scale); and
-- Braskem Group's sound track record in sponsoring securitization
transactions and stable performance of previous transactions.
Chemical VIII -- FIDC is Braskem Group's eighth securitization of
its trade receivables portfolio. The realized performance of the
past transactions has been in line with Moody's original
assumptions used in rating the transactions.
Chemical VIII - FIDC is a closed-ended FIDC and has a final legal
maturity of 60 months. Definitive ratings are assigned to the
senior shares and to the mezzanine shares. The senior shares and
the mezzanine shares accrue, on a daily basis, a floating-rate of
interest equivalent to the DI Rate (Brazilian Interbank Rate) plus
a fixed rate of 1.00% and 2.75% per annum, respectively.
The transaction has a 54 month revolving period followed by a 6
month amortization period. During the 54-month revolving period no
principal payments will be made on the senior and mezzanine
shares; interest payments will be made semi-annually. During the
final 6 month amortization period, starting on month 55, principal
and interest payments will be made on a monthly basis. Senior and
mezzanine shares will follow the same amortization schedule.
Amortization payments to the mezzanine shares will only be allowed
(i) after the scheduled senior amortization payments are made, and
(ii) as long as the minimum senior subordination ratio is
maintained. As long as there are senior and mezzanine shares
outstanding, partial amortization payments of junior subordinated
shares are allowed if the mezzanine subordination is above 2.8%.
Key eligibility criteria verified by the master servicer includes
(i) obligor concentration up to 3% and (ii) maturity of trade
receivables are 90 day maximum and 9 days minimum.
The originators of the securitized receivables are Braskem S.A.
and fully controlled subsidiaries including Braskem QPar S.A.
(previously known as Quattor Participacoes S.A.), Braskem
Petroquimica Ltda. (previously known as Quattor Petroquimica
S.A.), together Braskem Group or the Sellers.
Commingling risk is considered to be very low as obligors are
instructed to pay directly into a segregated account in the name
of the fund by means of invoices generated by Banco Bradesco and
other selected collection banks. Any monies received by the
sellers must be remitted to the segregated account within 2
business days; a non-automatic acceleration event (evento de
avaliacao) is triggered if payments made directly to the sellers'
account trigger 5% of fund's net assets. The sellers will act as
primary servicers.
Moody's has analyzed the sellers' receivables pool for the 36-
month period starting in May 2010 and ending in April 2013
reviewed by KPMG. During this period, Braskem and Quattor Group
(Braskem Qpar, Braskem Petroquimica and RioPol) have generated
trade receivables in the amount of BRL 76.3 billion over
approximately 1,053,592 separate invoices. On August 30, 2013,
RioPol was acquired by Braskem Qpar. As modeling input
assumptions, Moody's used a central mean of 0.13% monthly
dilutions and 0.20% monthly losses over outstanding balance, and
it assumed portfolio turnover at 40.75 days. Moody's calculates
loss assumptions using as a proxy delinquencies from 91 to 120
days past due over the total portfolio.
The main uncertainties of the transaction relate to the loss
levels and dilution levels of the securitized pool. Although
Moody's analyzed the historical performance data of previous
transactions and historical performance data of trade receivables
originated by Braskem Group, the actual performance of the
securitized pool may be affected, among others, by the
international competition in the petrochemical industry and severe
economic activity downturn.
Factors that would lead to an upgrade or downgrade of the rating
The factors that would lead to a downgrade of the rating are: (i)
a sudden and unexpected increase in delinquency and/or dilution,
(ii) a severe economic downturn affecting the Brazilian
petrochemical sector and (iii) a deterioration of the credit
quality of Braskem.
Stress Scenarios
Moody's parameter sensitivities provide a quantitative/model-
indicated calculation of how the rating of a Moody's-rated
structured finance security may vary if certain input parameters
used in the initial rating process differed. Moody's key ratings-
model assumptions for this transaction are Braskem's rating, loss
rate and dilution rate. Braskem S.A. is unrated; however, Moody's
has current outstanding ratings of Baa3 for two subsidiaries of
Braskem S.A.: Braskem Finance Ltd. and Braskem America Finance
Company. If Braskem's ratings are downgraded from Baa3 to Ba2 and
the loss rate and dilution rate are doubled, the senior and
mezzanine ratings assigned would remain unchanged.
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.
OGX PETROLEO: Brazilian Regulators Probed Over Their Oversight
--------------------------------------------------------------
Luciana Magalhaes at Daily Bankruptcy Review reports that
prosecutors confirmed that federal prosecutors in Rio Janeiro have
opened a civil inquiry into alleged possible irregularities by
Brazilian regulators in overseeing the former OGX Petroleo e Gas
Participacoes.
OGX, once the flagship of the industrial empire of former
billionaire Eike Batista, reported a loss of BRL2.1 billion ($915
million) for the third quarter ended in September, a financial
performance that stemmed mainly from a write-down over a failed
deal with Malaysia's Petroliam Nasional Bhd. (Petronas), according
to The Wall Street Journal.
OGX filed for bankruptcy protection in late October with $4
billion in debt.
The WSJ notes that the company, which ended the quarter with $85
million in cash, is currently in talks with bondholders for
additional cash to continue investments in the Tubarao Martelo oil
field, which is expected to start production soon.
The WSJ, citing unnamed sources, relates that in meetings in New
York, advisers for OGX asked bondholders owning 50% of its $3.6
billion in bonds outstanding for at least $150 million in fresh
capital. The group includes U.S. companies Pacific Investment
Management Co., or Pimco, and BlackRock Inc.
The WSJ discloses that one source said bondholders will begin a
due-diligence review of OGX's finances as soon as possible to
decide whether or not to put more money in the company.
If the discussions with bondholders are successful, Mr. Batista
would no longer be the controlling shareholder, one of the people
familiar with the talks said, The WSJ notes. Owners of the
company's bonds would likely take a controlling stake while other
creditors, including service providers and suppliers, would also
have shares in the company, the source said, The WSJ relays.
Mr. Batista currently owns 50.16% of OGX.
OGX is seeking to have the agreement signed in December and
expects to receive the new capital in different tranches, possibly
starting next month, said the same source, who added that the
company has enough cash to continue operating until the end of the
year, The WSJ adds.
About OGX Petroleo
Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participaaoes
S.A. is an independent exploration and production company with
operations in Latin America.
OGX filed for bankruptcy in a business tribunal in Rio de Janeiro
on Oct. 30, 2013, case number 0377620-56.2013.8.19.0001. The
bankruptcy filing puts $3.6 billion of dollar bonds into default
in the largest corporate debt debacle on record in Latin America.
The filing by the oil company that transformed Eike Batista into
Brazil's richest man followed a 16-month decline that wiped out
more than $30 billion of his personal fortune.
The filing, which in Brazil is called a judicial recovery, follows
months of negotiations to restructure the dollar bonds, in which
OGX sought to convert debt to equity and secure as much as $500
million in new funds. OGX said Oct. 29 that the talks concluded
without an agreement. The company's cash fell to about $82 million
at the end of September, not enough to sustain operations further
than December.
==========================
C A Y M A N I S L A N D S
==========================
AL-BAIT CORPORATION: Creditors' Proofs of Debt Due Dec. 19
----------------------------------------------------------
The creditors of Al-Bait Corporation are required to file their
proofs of debt by Dec. 19, 2013, to be included in the company's
dividend distribution.
The company's liquidators are:
Waleed M. Mohammed
Kuwait Finance House
Abdullah Al-Mubarok Street
PO Box 24989, Safat-13110
Kuwait
ARGOS INVESTMENT: Commences Liquidation Proceedings
---------------------------------------------------
On Oct. 23, 2013, the sole shareholder of Argos Investment Fund
Ltd. resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Dec. 11, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Jarard Blake
Telephone: (345) 914-1000
Facsimile: (345) 914-4060
c/o UBS Fund Services (Cayman) Ltd.
UBS House, 227 Elgin Avenue
P.O. Box 852 Grand Cayman KY1-1103
Cayman Islands
ARSENAL INVESTMENTS: Commences Liquidation Proceedings
------------------------------------------------------
Arsenal Investments Limited commenced liquidation proceedings on
Nov. 5, 2013.
Only creditors who were able to file their proofs of debt by
Dec. 9, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
CF FUND: Creditors' Proofs of Debt Due Dec. 18
----------------------------------------------
The creditors of CF Fund Holdings Ltd. are required to file their
proofs of debt by Dec. 18, 2013, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Oct. 29, 2013.
The company's liquidator is:
Lee Shick
c/o 20 Cecil Street
#21-02 Equity Place 049705
Singapore
FONDELEC E.E.E.G.P: Commences Liquidation Proceedings
-----------------------------------------------------
Fondelec E.E.E.G.P. Corp. commenced liquidation proceedings.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
Csaba Soos is the company's liquidator.
GALENA INSURANCE: Creditors' Proofs of Debt Due Dec. 20
-------------------------------------------------------
The creditors of Galena Insurance Coporporation SPC are required
to file their proofs of debt by Dec. 20, 2013, to be included in
the company's dividend distribution.
The company commenced liquidation proceedings on Nov. 6, 2013.
The company's liquidator is:
Bruce Putterill
607 West Bay Road #15
P.O. Box 30867 Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 525-2069
Facsimile: (345) 949-4772
HTC CONSULTANCY: Commences Liquidation Proceedings
--------------------------------------------------
HTC Consultancy Services Ltd. commenced liquidation proceedings on
Nov. 4, 2013.
Only creditors who were able to file their proofs of debt by
Dec. 10, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Nigel Clifford
Hill Top Cottage Oulton
Norwich
Norfolk NR11 6NX
UK
LEADUP RESOURCES: Commences Liquidation Proceedings
---------------------------------------------------
On Oct. 28, 2013, the shareholders of Leadup Resources Investments
Limited 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 liquidators are:
Kenneth M. Krys
Cosimo Borrelli
c/o KRyS Global, Governors Square
Building 6, 2nd Floor
23 Lime Tree Bay Avenue
P.O. Box 31237 Grand Cayman KY1-1205
Telephone (345) 947 4700
RAIN TREE FUND: Commences Liquidation Proceedings
-------------------------------------------------
On Nov. 5, 2013, the sole shareholder of Rain Tree Capital Fund
Ltd. resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Dec. 9, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
RAIN TREE MASTER: Commences Liquidation Proceedings
---------------------------------------------------
On Nov. 5, 2013, the sole shareholder of Rain Tree Capital Master
Fund Ltd. resolved to voluntarily liquidate the company's
business.
Only creditors who were able to file their proofs of debt by
Dec. 9, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
RAIN TREE US: Commences Liquidation Proceedings
-----------------------------------------------
On Nov. 5, 2013, the sole shareholder of Rain Tree Capital US Fund
Ltd. resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Dec. 9, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
THE AVA: Placed Under Voluntary Wind-Up
---------------------------------------
On Nov. 6, 2013, the shareholders of The Ava Foundation resolved
to voluntarily wind up the company's operations.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Alexandria Bancorp Limited
c/o Barbara Conolly
Telephone: (345) 945-1111
The Grand Pavilion Commercial Centre
802 West Bay Road
P.O. Box 2428 Grand Cayman KY1-1105
Cayman Islands
THE RIVER: Placed Under Voluntary Wind-Up
-----------------------------------------
On Nov. 6, 2013, the shareholders of The River Foundation resolved
to voluntarily wind up the company's operations.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Alexandria Bancorp Limited
c/o Barbara Conolly
Telephone: (345) 945-1111
The Grand Pavilion Commercial Centre
802 West Bay Road
P.O. Box 2428 Grand Cayman KY1-1105
Cayman Islands
WM INVESTMENTS: Commences Liquidation Proceedings
-------------------------------------------------
WM Investments commenced liquidation proceedings on Nov. 5, 2013.
Only creditors who were able to file their proofs of debt by
Dec. 9, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
CDL Company Ltd.
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
=============
B O L I V I A
=============
COMPANIA DE SEGUROS: Moody's Puts B3 GLC on Review for Upgrade
---------------------------------------------------------------
Moody's Latin America has taken positive rating actions on 13
Bolivian insurers, following recent improvement in Bolivia's
insurance operating environment, in particular as reflected in
Moody's Investors Service's updated sovereign credit factor
assessment for Bolivia. The rating agency noted that an improving
operating environment tends to have a positive influence on
insurers' credit profiles, as it may translate over time into
improved business and financial fundamentals for participants in
the industry sector.
Moody's has placed the global-local currency (GLC) and the
national scale (NS) insurance financial strength (IFS) ratings of
the following 11 insurers on review for possible upgrade:
Alianza Seguros y Reaseguros: B2 GLC and Aa3.bo NS IFS ratings
Alianza Vida Seguros y Reaseguros: B2 GLC and Aa3.bo NS IFS
ratings
Bisa Seguros y Reaseguros: B1 GLC and Aa2.bo NS IFS ratings
BUPA Insurance (Bolivia): Ba3 GLC and Aa1.bo NS IFS ratings
Compania de Seguros y Reaseguros Fortaleza: B3 GLC and A1.bo NS
IFS ratings
Crediseguro Seguros Personales: B2 GLC and Aa3.bo NS IFS ratings
La Boliviana Ciacruz de Seguros y Reaseguros: B1 GLC and Aa2.bo NS
IFS ratings
La Boliviana Ciacruz Seguros Personales: B1 GLC and Aa2.bo NS IFS
ratings
La Vitalicia Seguros y Reaseguros de Vida: B2 GLC and Aa3.bo NS
IFS ratings
Latina Seguros Patrimoniales: B2 GLC and Aa3.bo NS IFS ratings
Nacional Vida Seguros de Personas: B2 GLC and Aa3.bo NS IFS
ratings
Concurrently, Moody's has affirmed Seguros Illimani's Caa1 GLC IFS
rating with a stable outlook and placed on review for possible
upgrade the insurer's Baa2.bo NS IFS rating; and has affirmed
Seguros Provida's Caa1 GLC IFS rating and Baa3.bo NS IFS rating
and changed the outlook for both ratings to stable from negative.
Ratings Rationale:
According to Moody's, the review for possible upgrade of the 11
insurers' ratings and of the Baa2.bo NS IFS rating of Seguros
Illimani will focus on the degree to which the companies' credit
profiles benefit from improvement in Bolivia's insurance operating
environment. Should recent improvements in the operating
environment -- particularly as regards the combined impact from
the country's economic strength, institutional strength and
susceptibility to event risk -- be deemed to have a significant
impact on these insurers' credit profiles, some or all of the
ratings could be upgraded. Conversely, if the improved operating
environment is not expected to translate into meaningfully
improved credit profiles, then the ratings will likely be
confirmed.
With respect to Seguros Illimani, Moody's noted that the insurer's
Caa1 GLC IFS rating affirmation with a stable outlook reflects the
company's generally stable, but still overall comparatively weak
credit profile in comparison with other insurers in the Bolivian
marketplace, as well as on a global basis, primarily reflecting
its small capital base and modest market presence, its weak and
volatile profitability, and its business concentration in the
highly competitive mandatory automobile line of business (in
Spanish, "SOAT"). Moody's noted, however, that Seguros Illimani is
a long-standing traditional insurance company in the marketplace,
and that it has been one of the leading providers of mandatory
automobile coverage in Bolivia over the course of many years. The
review for possible upgrade of the insurer's Baa2.bo NSR rating
will focus primarily on an assessment of the extent to which
improvement in Bolivia's insurance operating environment could
improve its relative positioning among companies currently rated
at the Caa1 GLC level.
Regarding Seguros Provida, Moody's mentioned that the affirmation
of the company's ratings reflects its credit challenges, mainly
relating to the company's continued significant asset-liability
management (ALM) mismatch on its run-off pension liabilities and
sustained low market interest rates, which negatively impact the
company's profitability and capital adequacy. The rating agency
further noted that while the improved operating environment in
Bolivia is not sufficient to offset these challenges, its positive
impact results in a change of the outlook of the company's GLC and
NS IFS ratings to stable from negative. Going forward, a
significant restoration of Seguros Provida's capital adequacy and
profitability could lead to an upgrade of the company's ratings.
Conversely, factors that could lead to a downgrade of Seguros
Provida's ratings include the following: 1) continued impairment
in the company's capitalization levels (i.e. further decrease in
its capital base, or failure to comply with minimum regulatory
capital requirements); and 2) sustained weak profitability and
further spread compression.
Moody's insurance financial strength ratings are opinions of the
ability of insurance companies to pay punctually senior
policyholder claims and obligations.
=============
J A M A I C A
=============
DIGICEL GROUP: Puts Price on Private Placement of $500MM Sr. Notes
------------------------------------------------------------------
Digicel Group Limited has priced its private placement of US$500
million of 8.25% senior notes due 2020. Digicel previously issued
US$1.5 billion of its 8.25% senior notes due 2020 on September 19,
2012. The notes sold in the offering will be issued at a price to
the public of 103% plus accrued interest from September 30, 2013.
Digicel Group Limited is a limited liability exempted company
organized under the laws of Bermuda and owned by Denis O'Brien.
Digicel intends to use the net proceeds from this offering for
general corporate purposes, which could include capital
expenditures, investments, acquisitions or debt repayment.
The notes have not been and will not be registered under the U.S.
Securities Act of 1933, as amended and may not be offered or sold
in the United States absent registration or an applicable
exemption from registration requirements.
Digicel Group, with regional headquarters in Jamaica, entered the
Panama market in 2008.
DIGICEL GROUP: Moody's Affirms B2 CFR; Outlook Remains Stable
-------------------------------------------------------------
Moody's Investors Service has affirmed Digicel Group Limited B2
Corporate Family Rating (CFR), B2-PD Probability of Default Rating
and the existing debt instrument ratings at DGL and Digicel
Limited ("DL") following the company's recent announcement that it
plans to issue up to $500 million of add-on notes to DGL's
existing $1.5 billion 8.25% senior unsecured notes due 2020. The
rating outlook remains stable.
The terms of the proposed add-on are expected to be identical to
the existing notes. Moody's expects Digicel to deploy the proceeds
for general corporate purposes, including acquisitions and capital
expenditures. Moody's believes Digicel will use a portion of the
proceeds to finance the investment in its newly created joint
venture that will construct and lease-up 1,250 wireless towers in
Myanmar (Burma) with Ooredoo Q.S.C. (A2 stable) as the anchor
tenant. Ooredoo is a Qatar-based telecommunications carrier that
was awarded one of two licenses in July 2013 to provide mobile
communications services in Myanmar.
Ratings Affirmed:
Issuer: Digicel Group Limited
Corporate Family Rating -- B2
Probability of Default Rating -- B2-PD
$2.0 Billion 8.25% Senior Unsecured Notes due September 2020 --
Caa1, LGD assessment revised to (LGD-5, 82%)
$775 Million 10.5% Senior Unsecured Notes due April 2018 -- Caa1,
LGD assessment revised to (LGD-5, 82%)
Digicel Limited
$800 Million 8.25% Senior Unsecured Notes due September 2017 --
B1, LGD assessment revised to (LGD-3, 34%)
$250 Million 7% Senior Unsecured Notes due February 2020 -- B1,
LGD assessment revised to (LGD-3, 34%)
$1.3 Billion 6% Senior Unsecured Notes due April 2021 -- B1, LGD
assessment revised to (LGD-3, 34%)
Ratings Rationale:
Digicel's B2 CFR is supported by its leading position as the
largest wireless telecommunications carrier in the Caribbean, as
well as its successful track record at gaining significant market
share and producing solid operating results relatively quickly
after new markets are launched. The company's growing penetration
in markets outside of its long-standing Jamaica base has resulted
in quick deleveraging from roughly the 10.0x level following
recapitalization of the balance sheet in early 2007, to 4.8x total
debt to EBITDA (Moody's adjusted) as of September 30, 2013. Pro
forma for the planned add-on notes, Moody's expects leverage to
increase to about 5.2x, before declining to around 4.5x by FY15
(ending March 31).
However, Digicel's history of debt funded acquisitions and sizable
dividend payments, plus the likelihood that in the future DGL
could acquire the portion of DHCAL that it does not currently own
weigh down the rating. While the company continues to have strong
geographic diversification, this is mitigated by its exposure to
Jamaica (about 14% of total revenue), which is struggling to
revive its economy and experiencing competitive telecom pricing
following the implementation of a new regulatory and tax scheme
designed to increase government receipts. Further, slowing
subscriber growth, lower pricing plans and adverse foreign
currency movements relative to the US dollar in Digicel's three
largest geographies (Jamaica, Haiti and Papua New Guinea)
accounting for over 45% of revenue have resulted in flat year-
over-year revenue growth for the six months ended September 2013.
Digicel's good liquidity supports the rating. Moody's expects that
the company will end FY14 with cash balances of roughly $650
million compared to approximately $1 billion as of September 2013.
Cash flow from operations on a Moody's adjusted basis for the LTM
period ended September 2013 was about $593 million, relatively
flat compared to the $586 million generated in FY13. Though
Digicel generated positive free cash flow of $139 million in the
LTM period, Moody's expects free cash flow over the next 12 months
to be negative due to a sizable $650 million special dividend
payment (payable within the next 6 months) and rising capex
requirements to support greenfield network expansions in Haiti and
Papua New Guinea, 4G rollouts in the Caribbean and Pacific
geographies and new tower builds in Myanmar. Digicel also
maintains a $848 million unrated senior secured credit facility
(matures 2017) at its Digicel International Finance Ltd. ("DIFL")
subsidiary, however there are no further draws available under
this facility.
Rating Outlook
The stable rating outlook reflects Moody's opinion that DGL is
unlikely to drive debt to EBITDA leverage to under 4x (Moody's
adjusted) over the rating horizon given the incremental debt
incurred as a result of this capital raise together with the
upsized $1.3 billion notes issued earlier this year (March),
combined with evidence of slowing subscriber growth in Digicel's
core markets and flat operating cash flow growth. The outlook also
reflects Moody's view that over the next two years, the company
could use debt to acquire more DHCAL equity from its principal
shareholder, Denis O'Brien.
What Could Change the Rating - Up
Moody's could upgrade Digicel's rating if the company demonstrated
a less aggressive dividend philosophy, financial policies targeted
leverage lower than 4x debt to EBITDA (Moody's adjusted), and if
the operations exhibited positive free cash flow generation in
excess of 5% of total debt (Moody's adjusted) on a sustained basis
while maintaining very good liquidity.
What Could Change the Rating - Down
The ratings could be downgraded if operational shortfalls or
unexpected acquisitions/investments elevated Digicel's leverage
above 6x debt to EBITDA (Moody's adjusted) within an 18 - 24 month
horizon. The ratings will likely experience downward pressure if
competition escalates in the company's core markets or if
deterioration in the political, economic and regulatory
environments in the Caribbean or South Pacific markets result in
declining operating cash flows and weak liquidity.
Incorporated in Hamilton, Bermuda, with headquarters in Kingston,
Jamaica, W.I., Digicel is the largest provider of wireless
telecommunication services in the Caribbean. Revenue for the
twelve months ended September 30, 2013 totaled $2.8 billion.
===========
M E X I C O
===========
BANCO INTERACCIONES: Moody's Withdraws Ba3 Sr. Debt. Ratings
-----------------------------------------------------------
Moody's de Mexico has withdrawn the ratings on Banco
Interacciones, S.A.'s including: (i) bank financial strength
rating (BFSR) of E+, mapping from a standalone baseline credit
strength of b2; (ii) long- and short-term global local currency
(GLC) deposit ratings of Ba3 and Not-Prime, respectively; and
(iii) long- and short-term global local currency senior debt
ratings of Ba3 and Not-Prime. Moody's de Mexico has also withdrawn
Interacciones's long and short term Mexican National Scale deposit
ratings of A3.mx and MX-3, as well as its long and short term
Mexican National Scale debt ratings of A3.mx and MX-3. The outlook
on the ratings before the withdrawal was negative.
At the same time, Moody's de Mexico has withdrawn the bank's long
term global local currency subordinated debt ratings of B3 and the
Mexican National Scale subordinated debt ratings of Ba2.mx. The
outlook on these ratings before the withdrawal was negative.
Moody's de Mexico also withdrew Interacciones Casa de Bolsa, S.A.
de C.V.'s (CB Interacciones) ratings including: (i) long- and
short-term global local currency issuer ratings of Ba3 and Not-
Prime, respectively; and (ii) long- and short-term Mexican
National Scale ratings of A3.mx and MX-3. CB Interacciones ratings
take into account a standalone baseline credit assessment of b2.
The outlook on the ratings before the withdrawal was negative.
A detailed list of ratings withdrawn is provided further below in
this press release.
Ratings Rationale:
Moody's has withdrawn the ratings on Interacciones and CB
Interacciones for its own business reasons.
Interacciones is headquartered in Mexico City. As of September
2013, it had Mx$113.5 billion in assets.
The period of time covered in the financial information used to
determine Interacciones's rating is between 1 January 2006 and 30
September 2013 (source: Moody's, Issuer's financial statements,
CNBV and Banxico). The period of time covered in the financial
information used to determine CB Interacciones's rating is between
1 January 2008 and 30 September 2013 (source: Moody's, Issuer's
financial statements and CNBV).
The sources and items of information used to determine
Interacciones and CB Interacciones's rating include 2012 and 2013
interim financial statements (source: Banco Interacciones, S.A.);
year-end 2011 and 2012 audited financial statements (source: Banco
Interacciones, S.A., audited by Salles Sainz Grant Thornton);
financial statements and information on market position (source:
CNBV); regulatory capital information (source: Banco de Mexico);
debt offering memorandum (Banco Interacciones, S.A.).
The following ratings were withdrawn:
Banco Interacciones, S.A.
-- Bank Financial Strength Rating of E+
-- Long-term global local currency deposits of Ba3
-- Short-term global local currency deposits of Not-Prime
-- Long-term Mexican National Scale rating of A3.mx
-- Short-term Mexican National Scale rating of MX-3
-- Long-term global local currency senior unsecured debt (debt
program) of (P) Ba3
-- Short-term global local currency senior unsecured debt (debt
program) of (P) Not-Prime
-- Long-term global local currency senior unsecured debt of Ba3
-- Long term Mexican National Scale senior unsecured debt (debt
program) of A3.mx
-- Short term Mexican National Scale debt rating of MX-3
-- Long-term Mexican National Scale senior unsecured debt of A3.mx
-- Long-term global local currency subordinated debt of B3
-- Long-term global local currency subordinated debt (debt
program) of (P) B3
-- Long-term Mexican National Scale subordinated debt of Ba2.mx
-- Long-term Mexican National Scale subordinated debt (debt
program) of Ba2.mx
Interacciones Casa de Bolsa, S.A. de C.V.
-- Long-term global local currency issuer rating of Ba3
-- Short-term global local currency issuer rating of Not-Prime
-- Long-term Mexican National Scale rating of A3.mx
-- Short-term Mexican National Scale rating of MX-3
BANCO INTERACCIONES: Moody's Withdraws 'Ba3' Deposit Ratings
------------------------------------------------------------
Moody's Investors Service has withdrawn Banco Interacciones,
S.A.'s long- and short-term foreign currency deposit ratings of
Ba3 and Not-Prime. The outlook on all the ratings before the
withdrawal was negative.
A list of ratings withdrawn is provided further below in this
press release.
Ratings Rationale:
Moody's has withdrawn Interacciones's ratings for its own business
reasons.
Interacciones is headquartered in Mexico City. As of September
2013, it had Mx$113.5 billion in assets.
The period of time covered in the financial information used to
determine Interacciones's rating is between 1 January 2006 and 30
September 2013 (source: Moody's, Issuer's financial statements,
CNBV and Banxico).
The sources and items of information used to determine
Interacciones's rating include 2012 and 2013 interim financial
statements (source: Banco Interacciones, S.A.); year-end 2011 and
2012 audited financial statements (source: Banco Interacciones,
S.A., audited by Salles Sainz Grant Thornton); financial
statements and information on market position (source: CNBV);
regulatory capital information (source: Banco de Mexico); debt
offering memorandum (Banco Interacciones, S.A.).
The following ratings on Interacciones were withdrawn:
Banco Interacciones, S.A.
-- Long-term foreign currency deposits of Ba3
-- Short-term foreign currency deposits of Not-Prime
BANCO SANTANDER: To Optimise its Capital Structure
--------------------------------------------------
Banco Santander S.A. disclosed on Nov. 29, 2013, that its
subsidiary Banco Santander (Mexico), S.A. disclosed its intention
to:
-- distribute a dividend in cash in an amount ranging between
$1.0 billion and $1.3 billion; and
-- authorize the issue of subordinated notes which shall meet
the capital requirements under Basel III for Tier 2 capital,
in an approximate amount of $1 billion, subject to market
conditions.
In turn, Grupo Financiero Santander Mexico, the holder of 99.99%
of the share capital of Banco Santander (Mexico), has called a
shareholders meeting to resolve the distribution of a dividend to
its shareholders in an amount approximately equivalent to the one
to be received from Banco Santander (Mexico).
Banco Santander, S.A. intends to purchase approximately 75% of the
new instruments issued by Banco Santander (Mexico), as well as
those not purchased by third parties.
Headquartered in Mexico, Banco Santander (Mexico) S.A.,
(Institucion de Banca Multiple, Grupo Financiero Santander)
provides banking services in Mexico. The company offers personal
services, such as checking accounts, credit cards, personal
credit, mortgage, investments, insurance, pension funds, and tax
payment services.
BANCO SANTANDER: Moody's Rates $1BB Tier 2 Subordinated Notes Ba1
-----------------------------------------------------------------
Moody's Investors Service has assigned a Ba1 (hyb) rating to Banco
Santander (Mexico), S.A., Institucion de Banca Multiple, Grupo
Financiero Santander Mexico's (Santander Mexico) cumulative, non
convertible Tier 2 Subordinated Notes of approximately USD 1
billion due 2023. This is the first time Moody's has assigned a
rating to a Basel-III-compliant debt instrument issued by a Latin
American bank.
The rating is positioned three notches below Santander Mexico's
baa1 adjusted baseline credit assessment (adjusted BCA).
The rating is subject to receipt of final documentation, the terms
and conditions of which are not expected to change in any material
way from the draft documents that Moody's has reviewed.
Ratings Rationale:
In line with Moody's "Global Banks" methodology, the assigned Ba1
(hyb) debt rating is positioned three notches below Santander
Mexico's baa1 standalone baseline credit assessment (BCA). This
approach is in accordance with Moody's standard notching guidance
for subordinated debt with full or partial principal write-down
provision, triggered at the point of non-viability such as when
the bank is subject to financial rehabilitation and/or upon the
breach of capital triggers set at or close to the point of non-
viability, both on a contractual basis. The debt rating
incorporates a third notch to reflect cumulative coupon deferral
mechanisms.
Santander Mexico has the right to defer but not cancel payment of
interest or principal if the banking regulator, Comision Nacional
Bancaria y de Valores (CNBV), initiates any corrective measure
against the bank that requires the deferral of payment of
principal or interest pursuant Article 134 Bis and Article 134 Bis
1 of the Mexican Banking Law or if the bank is classified at or
below Class III under Mexican capitalization requirements.
Under the terms of the subordinated notes, principal will be
written down (partially or in full) in the event that Santander
Mexico's Common Equity Tier 1 Capital (Capital Basico 1) equals or
falls below 4.5%, or if the CNBV, in consultation with the Mexican
central bank, Banco de Mexico (Banxico), and Santander Mexico,
makes a determination, pursuant to Article 29 Bis of the Mexican
Banking Law (Ley de Instituciones de Credito) that a cause for
revocation of the bank's license has occurred and that the bank
has not cured such cause for revocation in a timely manner.
The notes (i) will be subordinate and junior in right of payment
and in liquidation to all of Santander Mexico's present and future
senior indebtedness, (ii) will rank pari passu with all other
unsecured Subordinated Preferred Indebtedness and (iii) will be
senior to Subordinated Non-Preferred Indebtedness and to all
classes of capital stock.
Headquartered in Mexico City, Mexico, Santander Mexico reported
total assets of MXN805 billion (USD61 billion), gross loans of
MXN379 billion, total deposits of MXN390 billion, shareholders'
equity of MXN103 billion and net income of MXN15 billion, as of 30
September 2013.
GRUMA SAB: Fitch Hikes Curr. IDRs & $300MM Bonds Rating to 'BB+'
----------------------------------------------------------------
Fitch Ratings has upgraded the ratings of Gruma, S.A.B. de C.V. as
follows:
-- Long-term Foreign Currency Issuer Default Rating (IDR) to
'BB+' from 'BB';
-- Long-term Local Currency IDR to 'BB+' from 'BB';
-- USD300 million perpetual bonds to 'BB+' from 'BB'.
The Rating Outlook is Stable.
The rating upgrade reflects Gruma's focus to debt reduction and
improved profitability leading to a decline in its gross leverage.
Fitch incorporates in the upgrade that the company will continue
with its commitment to strength its capital structure and
gradually decrease its total debt to EBITDA ratio to a level close
to 2.5x in the following 12 months. The rating upgrade also
considers the company's improved debt maturity profile and higher
cash flow generation.
Key Rating Drivers:
Solid Business Profile:
Gruma's ratings are supported by its solid business profile as one
of the largest producers of corn flour and tortillas in the world,
strong brand equity, and good operating performance. The ratings
also incorporate the company's geographic diversification and hard
currency revenue with nearly 52% of its total sales generated by
Gruma Corporation with operations in the U.S. and Europe. The
company's ratings reflect its exposure to the volatility in prices
of its main raw materials, corn and wheat, and the uncertainty
derived from the nationalization of the Venezuelan operations,
which are excluded from Fitch credit analysis.
Profitability Improvement:
Fitch expects that Gruma's EBITDA margin improvement to levels
around 11% to 12% during 2013 will remain stable in the mid-term
as a result of its strategy to prioritize profitable operations
combined with a favorable outlook for the prices of its main raw
material, corn and wheat. Gruma's pricing initiatives, better
product sales mix, rationalization of SKUs and stable raw material
costs associated to hedging initiatives, have mainly contributed
to improve its gross profit margin. In addition, the company has
optimized its marketing and administrative expenses to further
support its increased profitability. During the nine months ending
Sept. 30, 2012, excluding the operations of Venezuela, EBITDA
margins improved to 11.6% from 7.6% for the same period of last
year.
Reduction in Leverage:
Fitch estimates Gruma's total debt to EBITDA to be close to 2.5x
in the following 12 months from a combination of EBITDA growth and
debt reduction. As of Sept. 30, 2013, the company has reduced its
total debt balance by USD180 million to reach USD1,372 million.
Gruma's total debt to EBITDA estimated by Fitch, excluding the
operations of Venezuela, for the last 12 months as of Sept. 30,
2013, was 2.8x times. This level of leverage was significantly
lower than 4.3x estimated by Fitch in December 2012 after closing
the debt financed acquisition for USD450 million of the 23.16%
equity stake that Archer Daniels Midland Company (ADM) had in
Gruma.
Manageable Debt Profile:
Fitch incorporates in the ratings the improvement in Gruma's debt
maturity profile and financial flexibility coming from the debt
refinancing of USD400 million related to the transaction with ADM.
The company's short-term debt as of Sept. 30, 2013, represented
around 8% of its total debt while its next debt amortizations in
2014 and 2015 are USD74 million and USD72 million, respectively.
Gruma's next significant debt maturity of USD468 million is in
2016, which the company expects to refinance during 2015.
Adequate Liquidity:
Gruma's liquidity position is adequate supported by its positive
funds from operations (FFO) generation and access to credit lines.
Cash and marketable securities were MXN1.7 billion at Sept. 30,
2013, that combined with an annual FFO generation of around MXN3.7
billion are sufficient to cover its short-term debt obligations of
MXN1.5 billion and expected capital expenditures requirements of
approximately MXN1.9 billion in 2014. The company also maintained
USD130 million of available committed credit lines as of Sept. 30,
2013.
Fitch expects that Gruma will continue to use any excess of cash
generation to reduce leverage. FFO is expected to maintain its
trend in 2014, reaching levels above MXN3.5 billion which combined
with the company's strategy to optimize net working capital
requirements and maintain capital expenditures below historical
levels will contribute to free cash flow to be used towards debt
reduction.
Rating Sensitivities:
Positive rating actions may result from a combination of debt
reduction, stronger operating results, and stable cash flow
generation that leads to a sustained improvement in the company's
gross leverage ratio close to 2.0x. Also, sustained profitability
across the business cycle and debt amortization aligned with cash
flow generation will be viewed as positive to credit quality.
Conversely, negative rating actions could occur if the company's
gross leverage or liquidity position deteriorates significantly as
a result of operational factors, adverse market conditions or debt
financed acquisitions.
HIPOTECARIA SU: S&P Affirms 'D' Ratings on 2 Classes of Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
senior classes of two residential construction loan
securitizations issued by Hipotecaria Su Casita S.A. de C.V. SOFOM
E.N.R. (Hipotecaria Su Casita) and affirmed its ratings on the
subordinated classes. The affected series are Hipotecaria Su
Casita - Bursatilizaciones de Creditos Puente II's HSCCICB 06 &
06-2 (issued in 2006) and HSCCB 08 & 08-2 (issued in 2008).
On senior class HSCCICB 06, S&P lowered its long-term global-scale
rating to 'CC (sf)' from 'CCC- (sf)' and its national-scale
(CaVal) rating to 'mxCC (sf)' from 'mxCCC (sf)', and it affirmed
its national-scale 'D (sf)' rating on subordinated class HSCCICB
06-2. On senior class HSCCB 08, S&P lowered its national-scale
rating to 'mxCC (sf)' from 'mxCCC (sf)' and affirmed its national-
scale 'D (sf)' rating on the subordinated class HSCCB 08-2.
HSCCICB 06 and HSCCICB 06-2 are serviced by Adamantine Servicios
S.A. de C.V., and HSCCB 08 and HSCCB 08-2 are serviced by NS
Capital Asset Management SC.
The downgrade of the HSCCICB 06 senior notes is based on the
liquidity pressures that the trust could face as a result of low
collections and recoveries. Combined with high trust expenses,
these pressures could eventually jeopardize the transaction's
capacity to meet with its financial obligations. The downgrade of
senior class HSCCB 08 reflects S&P's view that the likelihood of
nonpayment is higher as the notes get closer to their legal
maturity date (March 28, 2014). S&P affirmed its 'D (sf)' ratings
on the subordinated classes of each transaction to reflect the
classes' missed interest payments since December 2009 and March
2011, respectively.
The underlying assets of both transactions have continued to
perform poorly, with high nonperforming ratios of 92.26% for
Series HSCCICB 06/06-2 and 100% for Series HSCCB 08 & 08-2 as of
October 2013. Combined with a slow pace of recoveries from assets
in foreclosure, this poor performance has pressured the trusts'
monthly collections. Moreover, Series HSCCICB 06/06-2's cash
reserves fell to 11.45 million Mexican pesos (MXN) as of the
latest servicer's report from MXN66.48 million at the time of
S&P's last review (May 2013). If collections were to remain close
to the levels of the past few months and if there are no
extraordinary inflows from recoveries, the trust could run out of
cash in the coming months, resulting in a default of interest.
Series HSCCB 08/08-2's current cash reserve balance of
MXN20.97 million could be sufficient to cover expenses and
interest payments for the remaining months, though it will not
cover the principal at maturity.
As per S&P's ratings definitions, an obligation rated 'CC' is
highly vulnerable to nonpayment. S&P uses the 'CC' rating when a
default has not yet occurred but it considers default to be a
virtual certainty, regardless of the anticipated time to default.
Similarly, an obligation rated 'mxCC' is highly vulnerable to
nonpayment relative to other national obligations. S&P uses the
'mxCC' rating when a default has not yet occurred but it considers
default to be a virtual certainty, regardless of the anticipated
time to default.
STANDARD & POOR'S 17G-7 DISCLOSURE REPORT
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.
If applicable, the Standard & Poor's 17g-7 Disclosure Reports
included in this credit rating report are available at:
http://standardandpoorsdisclosure-17g7.com
RATINGS LIST
Ratings Lowered
Hipotecaria Su Casita-Bursatilizaciones de Creditos Puente II
Rating Amount outs.
Class To From (Mil. MXN)
HSCCICB 06 CC (sf) CCC- (sf) 514.47
HSCCICB 06 mxCC (sf) mxCCC (sf) 514.47
HSCCB 08 mxCC (sf) mxCCC (sf) 232.60
Ratings Affirmed
Hipotecaria Su Casita-Bursatilizaciones de Creditos Puente II
Rating Amount outs.
Class (Mil. MXN)
HSCCICB 06-2 D (sf) 250.00
HSCCB 08-2 D (sf) 197.43
MAXCOM TELECOMUNICACIONES: Board OKs Appointment of PWC as Auditor
------------------------------------------------------------------
Maxcom Telecomunicaciones, S.A.B. de C.V. disclosed that the
company's Board of Directors, as per recommendation of its Audit
Committee, approved the appointment of PricewaterhouseCoopers,
S.C. as the Company's independent auditor for the fourth quarter
of 2013 replacing KPMG Cardenas Dosal, S.C. Maxcom continues with
the application of good corporate practices through the
appointment of the new independent auditors.
Maxcom would like to thank KPMG for the service it provided the
Company in recent years and look forward to continued work with
them in other capacities.
About Maxcom
Maxcom Telecomunicaciones, S.A.B. de C.V., headquartered in Mexico
City, Mexico, is a facilities-based telecommunications provider
using a "smart-build" approach to deliver last-mile connectivity
to micro, small and medium-sized businesses and residential
customers in the Mexican territory. Maxcom launched commercial
operations in May 1999 and is currently offering local, long
distance, data, value-added, paid TV and IP-based services on a
full basis in greater metropolitan Mexico City, Puebla, Tehuacan,
San Luis, and Queretaro, and on a selected basis in several cities
in Mexico.
* * *
Maxcom carries a 'CC' corporate credit rating from Standard &
Poor's Ratings Services and a "Caa1" from Moody's Investors
Service.
=======
P E R U
=======
VOLCAN COMPANIA: S&P Lowers Rating to 'BB+' & Removes from Watch
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on Volcan
Compania Minera S.A.A. to 'BB+' from 'BBB-' and removed them from
CreditWatch with negative implications, where S&P placed them on
Nov. 26, 2013. The outlook is stable.
The downgrade primarily reflects S&P's assessment that modifiers
have a neutral impact on Volcan's anchor which is 'bb+'. The
anchor and ratings reflect the company's "fair" business risk
profile and "intermediate" financial risk profile.
Under S&P's previous corporate criteria, it used to assign one-
notch uplift to ratings due to Volcan's formerly "strong"
liquidity, its very conservative capital structure, and its
expectations of the company's diversification of its metal
portfolio by expanding its copper output through 2016, while
keeping its very conservative financial stance.
Following the revised criteria, neither of those factors are
robust enough to support one-notch uplift. Moreover, S&P now
don't expect positive prospects for the company's product
diversification, so the comparable rating analysis is also
neutral. Main factors behind S&P's less optimistic view are a
more conservative price scenario for silver, which accounts for
about 47% of the company's EBITDA, the uncertain prospects for
increasing copper production before 2017--as its completion of the
copper project Rondoni is delayed beyond that year-and a limited
ability to generate free cash flow through 2016.
S&P's assessment of Volcan's "fair" business risk profile is due
to its exposure to volatile metal prices, especially silver, its
asset concentration in a few mines in Peru, and overall limited
business scale. Its adequate, though volatile, operating
efficiency is a partly offsetting factor.
===============================
T R I N I D A D & T O B A G O
===============================
TRINIDAD CEMENT: T&T Court of Appeal Upholds Injunction
-------------------------------------------------------
RJR News reports that Trinidad and Tobago's Court of Appeal has
upheld an injunction which restricted Trinidad Cement Limited
(TCL) from holding its annual general meeting.
TCL is the parent company of Caribbean Cement.
An advisory from Trinidad Cement said the case management
conference for the matter was held on December 2 and has been put
to January 20, 2014 for directions, according to RJR News.
The report notes that TCL wanted 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 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 report relates.
The minority group wants to nominate five directors to TCL's
board.
* * *
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.
***********
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
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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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