TCRLA_Public/131220.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 20, 2013, Vol. 14, No. 252


                            Headlines



B A R B A D O S

SAGICOR LIFE: Sagicor Investments to Pay Dividends in January


B R A Z I L

OGX PETROLEO: Fitch Affirms and Withdraws D Issuer Default Rating
OSX BRASIL: Sees Bondholders Accepting Delayed Interest
RB CAPITAL: Moody's Affirms Ba1 Local Currency Rating on Certs.


C A Y M A N  I S L A N D S

ABSOLUTE RETURN DAMA: Shareholders' Final Meeting Set for Dec. 20
ABSOLUTE RETURN: Shareholders' Final Meeting Set for Dec. 20
AVATAR FINANCE: Shareholders' Final Meeting Set for Dec. 20
BLACKSTONE LR: Shareholders Receive Wind-Up Report
CAYMAN LTD: Shareholders Receive Wind-Up Report

CMA CAPITAL: Shareholders Receive Wind-Up Report
CRAFT 2010-1: Shareholders' Final Meeting Set for Dec. 20
CRAFT 2010-4: Shareholders' Final Meeting Set for Dec. 20
CRAFT 2010-5: Shareholders' Final Meeting Set for Dec. 20
CRAFT 2012-1: Shareholders' Final Meeting Set for Dec. 20

KARSCH TRADING: Shareholders' Final Meeting Set for Dec. 20
LAMA INTERNATIONAL: Shareholders Receive Wind-Up Report
MA ABSOLUTE: Shareholders' Final Meeting Set for Dec. 20
MA KARSCH: Shareholders' Final Meeting Set for Dec. 20
PALO ALTO: Shareholders Receive Wind-Up Report


H O N D U R A S

HONDURAS: Moody's Rates $500MM Bond at B2; Outlook Negative


J A M A I C A

* JAMAICA: Tax Collections Still Affected by Smoking Regulations


M E X I C O

URBI DESARROLLOS: Fitch Affirms, Withdraws 'C/RR4' Note Ratings


T R I N I D A D  &  T O B A G O

CARIBBEAN CEMENT: Makes First Shipment of Clinker to Venezuela
BANCO DELA REPUBLICA: Moody's Affirms Standalone BFSR at D+


V E N E Z U E L A

PETROLEOS DE VENEZUELA: Moody's Cuts Currency Bond Rating to Caa1


                            - - - - -


===============
B A R B A D O S
===============


SAGICOR LIFE: Sagicor Investments to Pay Dividends in January
-------------------------------------------------------------
RJR News reports that shareholders of Sagicor Investments are to
get a dividend on January 28.

Sagicor Investment is a subsidiary of Sagicor Life Inc.

The company declared a J$0.91 cents per share dividend at a
reconvened board meeting, according to RJR News.

The report relates that the dividend is to be paid to those on
record as owning its shares on January 7 which means the latest
day to buy the share to benefit from the dividend is January 3.

The dividend commits the company to paying out more than J$500
million, the report notes.

Headquartered in St. Michael, Barbados, Sagicor Life Inc. --
http://www.sagicorlife.com/-- is a financial services company,
and through its subsidiaries, offers life and health insurance,
annuities, pensions, property and casualty insurance, and banking
services.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Nov. 27, 2013, Standard & Poor's Ratings Services said that the
'BB+' financial strength and counterparty credit ratings on
Sagicor Life Inc. (Sagicor) and its 'BB-' issue-level ratings on
Sagicor Finance Ltd. remain on CreditWatch with negative
implications where S&P placed them on Feb. 13, 2012.


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


OGX PETROLEO: Fitch Affirms and Withdraws D Issuer Default Rating
-----------------------------------------------------------------
Fitch Ratings has affirmed and withdrawn the following ratings of
OGX Petroleo e Gas Participacoes S.A. (OGX):

-- Foreign currency Issuer Default Rating (IDR) at 'D';
-- Local currency IDR at 'D';
-- National Long Term Rating at 'D(bra)';
-- Unsecured debt at 'C/RR5'.

Fitch has withdrawn these ratings due to company's bankruptcy
filing in October 2013, the ongoing debt restructuring process and
limited information being provided during this time.


OSX BRASIL: Sees Bondholders Accepting Delayed Interest
-------------------------------------------------------
Jeb Blount at Reuters reports that OSX Brasil SA Chief Financial
Officer Claudio Antonio da Silva Zucker said the company expects a
deal in the coming days to delay an interest payment on bonds sold
to finance an oil production ship, a move that will help the
ailing Brazilian shipbuilder move ahead with a restructuring plan.

A deal will allow OSX SA, controlled by tycoon Eike Batista, to
put off a Dec. 20 interest payment on US$500 million of 9.25%
bonds due in 2015.

Reuters reported on Dec. 5 that 95% of the holders of the
securities had agreed to delay the Dec. 20 payment, worth about
US$11.6 million.  One of the conditions is that OSX give up
control, but not ownership, of the OSX-3 ship that secured the
bonds to a captain and crew under the control of creditors,
sources told Reuters at that time.

OSX Brasil, which operates a shipyard north of Rio de Janeiro,
last month filed for protection from creditors on liabilities of
BRL5.34 billion (US$2.30 billion).  OSX Brasil, part of Mr.
Batista's troubled Grupo EBX, filed for bankruptcy after Oleo e
Gas Participacoes SA, formerly known as OGX Petroleo e Gas
Participacoes, filed for bankruptcy Oct. 30, according to Reuters.

Reuters notes that the bankruptcy petition left OSX's ship-leasing
unit, which owns three floating, production, storage and
offloading (FPSO) ships, out of the petition as it seeks buyers
for the ships and deals with bondholders and banks that financed
them.

A deal to sell the OSX-2 FPSO, which is in storage in Malaysia,
could be complete in the first half of 2014, Mr. Zucker said,
Reuters relates.  OSX is renegotiating its US$263,000 a day lease-
fee on the OSX-1 in Tubarao Azul, Mr. Zucker added.

The OSX-3 started output in Oleo e Gas Participacoes' Tubarao
Martelo field earlier this month, and oil production from the
field is sufficient to cover its lease, OSX Chief Executive
Officer Eucherio Rodrigues said at the event, the report notes.

The report discloses that OSX SA is also in talks with
construction and engineering companies to lease space at its
shipyard at the Port of Acu.  The port is controlled by Prumo
Logistica SA, formerly known as LLX Logistica SA.

Control of Prumo, EBX's former port operator, was sold by Batista
earlier this year to Washington-based EIG Global Energy Partners
LLC.

                          About OSX

OSX Brasil SA is a shipbuilder controlled by billionaire Eike
Batista.

As reported in the Troubled Company Reporter-Latin America on
Nov. 12, 2013, The Wall Street Journal said that OSX Brasil SA
filed for bankruptcy protection, the second such filing for a
commodities empire that crumbled this year as losses piled up and
investor confidence plummeted.

The move on Nov. 11 at a Rio de Janeiro court follows a default
and bankruptcy filing the prior month for Mr. Batista's flagship
oil firm OGX Petroleo e Gas Participacoes SA, according to the WSJ
report.  The firm went public in 2008 for $4.1 billion but failed
to produce nearly any of the up to 10.8 billion barrels it claimed
to have. Recently, OGX declared several of its once promising
fields were actually duds.


RB CAPITAL: Moody's Affirms Ba1 Local Currency Rating on Certs.
--------------------------------------------------------------
Moody's America Latina has affirmed the provisional ratings of
(P)Aa2.br (National Scale, Local Currency) and of (P)Ba1 (Global
Scale, Local Currency) assigned to the 97th, 98th and 99th Series
of the 1st Issuance of real estate certificates to be issued by RB
Capital Companhia de Securitizacao S.A. (RB Capital, the Issuer or
the Securitizadora).

Issuer / Securitizadora: RB Capital Companhia de Securitizacao
S.A.

97th, 98th and 99th Series of the 1st Issuance of CRIs for a total
amount up to BRL 400,200,000; ratings affirmed at (P)Aa2.br /
(P)Ba1

Ratings Rationale:

The rating affirmation follows an update to the proposed
transaction structure. The transaction has not closed yet. The
changes to the transaction structure are credit-positive or
neutral, and do not affect the rating of the certificates, which
is based on the rating of BR Malls Participacoes S.A. (BR Malls).

The updated structure has two main changes. First, after the
termination of any tenant agreement, BR Malls will now continue to
make payments to the securitization company according to the
original terms of the terminated tenant agreement. Previously, BR
Malls had up to 90 days to sign a new tenant agreement and only if
90 days had passed without a new tenant agreement in place, BR
Malls was obligated to pay. Moody's considers this change credit
positive given that the guarantee that BR Malls provides on the
underlying assets will be more timely.

Second, the current structure does not include a minimum coverage
ratio trigger ( "Indice de Cobertura Minimo -- Lastro") that was
previously in the documents. Moody's considers this change to be
credit neutral because the updated obligation of BR Malls to
continue making payments according to the terms of the original
tenant agreements turns this trigger irrelevant.

The ratings of the certificates are based, among others, on the
following factors:

-- The ability and willingness of BR Malls, which has a senior
unsecured rating of Aa2.br (Brazilian National Scale) and Ba1
(Global Scale, Local Currency), to make payments due under the
guarantee. The irrevocable and unconditional guarantee issued by
BR Malls in favor of the Issuer and consequently to the investors
of the CRI, obligating itself as guarantor and principal payer,
together with the tenants, for full and timely payments of the
real estate credits ultimately backing the CRI;

-- The structure of the transaction whereby payments under the
guaranteed Real Estate Credits match payments under the CRI;

-- Legal and structural features, including (i) mandatory
repurchase events defined in transaction documents which obligate
the Sellers (Ecisa, Nattca and Ecisa Engenharia, fully controlled
by BR Malls) to repurchase automatically any outstanding credit
rights and (ii) non-automatic and automatic early redemption
events.

The assigned ratings reflect the guarantee provided by BR Malls
S.A and are based on its ability to make payments under the
guarantee, as reflected by its senior unsecured rating. Any future
change in the senior unsecured rating of BR Malls will lead to a
change in the ratings of the CRI. In assigning the ratings,
Moody's has not given credit to the pledged real estate backing
the certificates, or the pledged real estate receivables (pledged
tenancy revenues).

The CRI are backed by real estate credits rights derived from
two shopping malls located in Brazil ("Real Estate Credits") and
benefit from: (i) a guarantee (fianca) provided by BR Malls
Participacoes S.A. ("BR Malls") on the Real Estate Credits, (ii) a
pledge of the Real Estate Assets (alienacao fiduciaria) in favor
of the issuer, (iii) a pledge of cash flows derived from the
shopping mall operation, including the parking lot (cessao
fiduciaria), and (iv) a pledge of the escrow account where rental
payments are deposited (cessao fiduciaria).

BR Malls is the largest owner and manager of shopping centers in
Brazil. The company has grown significantly to BRL18.1 billion in
gross assets at 2Q13 from BRL 2.8 billion at YE07.

BR Malls currently owns interests in 51 malls plus it has five
projects in development. The malls are geographically diversified
across the country and diversified across consumer income groups.
Another credit strength is the portfolio's high occupancy of 97.7%
and its solid operating margins at 74% as of 2Q13.

Factors that would lead to an upgrade or downgrade of the rating

Any future changes in the senior unsecured rating of BR Malls
Participacoes S.A. will lead to a change in the CRI's ratings.


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

ABSOLUTE RETURN DAMA: Shareholders' Final Meeting Set for Dec. 20
-----------------------------------------------------------------
The shareholders of Absolute Return Capital Partners Dama Limited
will hold their final meeting on Dec. 20, 2013, to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

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


ABSOLUTE RETURN: Shareholders' Final Meeting Set for Dec. 20
------------------------------------------------------------
The shareholders of Absolute Return Capital Partners Trading
Limited will hold their final meeting on Dec. 20, 2013, to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

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


AVATAR FINANCE: Shareholders' Final Meeting Set for Dec. 20
-----------------------------------------------------------
The shareholders of Avatar Finance will hold their final meeting
on Dec. 20, 2013, to receive the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

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


BLACKSTONE LR: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Blackstone LR Offshore Fund, Ltd received on
Dec. 11, 2013, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Patrick Agemian
          Global Funds Management Ltd
          P.O. Box 10034 Harbour Place, 2nd Floor
          103 South Church Street
          Grand Cayman KY1-1101
          Cayman Islands


CAYMAN LTD: Shareholders Receive Wind-Up Report
-----------------------------------------------
The shareholders of Cayman Ltd. Holdco received on Dec. 10, 2013,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Thomas Edward Walsh
          385 Ravendale Drive
          Mountain View CA, 94043
          United States of America


CMA CAPITAL: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of CMA Capital Partners Fund received on Dec. 16,
2013, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          Rolf Kung
          IFIT Fund Services AG,
          Voltastrasse 61,
          P.O. Box 2520,
          CH-8033 Zurich
          Telephone: +41 44 366 4016
          Facsimile: +41 44 366 4039


CRAFT 2010-1: Shareholders' Final Meeting Set for Dec. 20
---------------------------------------------------------
The shareholders of Craft 2010-1, Ltd will hold their final
meeting on Dec. 20, 2013, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

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


CRAFT 2010-4: Shareholders' Final Meeting Set for Dec. 20
---------------------------------------------------------
The shareholders of Craft 2010-4, Ltd will hold their final
meeting on Dec. 20, 2013, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

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


CRAFT 2010-5: Shareholders' Final Meeting Set for Dec. 20
---------------------------------------------------------
The shareholders of Craft 2010-5, Ltd will hold their final
meeting on Dec. 20, 2013, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

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


CRAFT 2012-1: Shareholders' Final Meeting Set for Dec. 20
---------------------------------------------------------
The shareholders of Craft 2012-1, Ltd will hold their final
meeting on Dec. 20, 2013, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

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


KARSCH TRADING: Shareholders' Final Meeting Set for Dec. 20
-----------------------------------------------------------
The shareholders of Karsch Trading Limited will hold their final
meeting on Dec. 20, 2013, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

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


LAMA INTERNATIONAL: Shareholders Receive Wind-Up Report
-------------------------------------------------------
The shareholders of Lama International Ltd. received on Nov. 29,
2013, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          MBT Trustees Ltd.
          Telephone: 945-8859
          Facsimile: 949-9793/4
          P.O. Box 30622
          Grand Cayman KY1-1203
          Cayman Islands


MA ABSOLUTE: Shareholders' Final Meeting Set for Dec. 20
--------------------------------------------------------
The shareholders of Ma Absolute Return Capital Partners Limited
will hold their final meeting on Dec. 20, 2013, to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

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


MA KARSCH: Shareholders' Final Meeting Set for Dec. 20
------------------------------------------------------
The shareholders of Ma Karsch Limited will hold their final
meeting on Dec. 20, 2013, to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

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


PALO ALTO: Shareholders Receive Wind-Up Report
----------------------------------------------
The shareholders of Palo Alto Global Energy Offshore Liquidating
Fund, Ltd. received on Dec. 9, 2013, the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Scott Smith
          Walkers
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9001
          Cayman Islands
          Telephone: (345) 914 6386


===============
H O N D U R A S
===============


HONDURAS: Moody's Rates $500MM Bond at B2; Outlook Negative
-----------------------------------------------------------
Moody's Investors Service has assigned a B2 rating to the $500
million bond maturing on December 16, 2020 issued by the
government of Honduras. The rating matches Honduras' B2 issuer
rating, whose outlook was revised to negative from stable on
February 26, 2013.

This was Honduras' second bond placement on international capital
markets. The first took place in March of this year and involved a
$500 million 11-year bond.

At the beginning of the year, congress approved government debt
issuance of up to $750 million in 2013. That amount was increased
to $1 billion last week, thus allowing the government to issue
another $500 million bond this year.

Ratings Rationale:

The B2 rating with a negative outlook reflects (1) the
deterioration of the government accounts in 2012 and 2013, partly
related to this year's elections; (2) a weakening of the external
accounts that has led to a widening current account deficit that
has been only partially covered by foreign direct investment
inflows.

Consideration of a stable outlook will require clear evidence of
fiscal consolidation, as well as material improvement in the
external accounts. Alternatively, the rating could come under
downward pressure in the event of a continued and marked
deterioration of fiscal and/or external finances.


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


* JAMAICA: Tax Collections Still Affected by Smoking Regulations
----------------------------------------------------------------
RJR News reports that the Jamaican government has released
information showing that its tax collection is still being hit by
the smoking regulations.

The impact was shown in a decline in the amount of Special
Consumption Tax (SCT), collected for tobacco products, according
to RJR News.

The report relates that data from the Ministry of Finance show
that SCT intake at the ports was running behind by almost J$3
billion.

The decline was however not due only to lower tobacco imports, but
also to a falloff in imports of refined petroleum and petroleum
products as Petrojam increased refining operations in the year,
the report notes.


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


URBI DESARROLLOS: Fitch Affirms, Withdraws 'C/RR4' Note Ratings
---------------------------------------------------------------
Fitch Ratings has affirmed and simultaneously withdrawn the
ratings for Urbi Desarrollos Urbanos, S.A.B. de C.V. (Urbi) as
follows:

-- Foreign currency Issuer Default Rating (IDR) at 'RD';
-- Local currency IDR at 'RD';
-- National long-term rating at 'RD(Mex)';
-- Urbi's national short-term rating at 'RD(Mex)';
-- MXN600 million in Certificados Bursatiles (CBs) due in 2014
   at 'D(mex)';
-- US$150 million senior notes due 2016 at 'C/RR4';
-- US$300 million senior notes due 2020 at 'C/RR4';
-- US$500 million senior notes due 2022 at 'C/RR4'.

Key Rating Drivers:

Fitch has withdrawn the aforementioned ratings due to the ongoing
financial debt restructuring of the company and the lack of
information provided by the issuer. Accordingly, Fitch will no
longer provide ratings or analytical coverage for Urbi.


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


CARIBBEAN CEMENT: Makes First Shipment of Clinker to Venezuela
--------------------------------------------------------------
RJR News reports that Caribbean Cement Company Limited was to make
its first shipment of clinker to Venezuela Dec. 19.

The shipment is part of compensation for oil bought from the South
American country under the PetroCaribe initiative, according to
RJR News.  The report relates that under that agreement, Jamaica
can pay for oil with exports of some manufactured goods and
agricultural items.

"As you are aware we've been pursuing sales to Venezuela under the
trade compensation mechanism of the PetroCaribe agreement for the
past few years, and it's all coming to fruition now.  Today, we
will be doing our first shipment 19,000 tons-plus or minus-of
clinker going to Venezuela for conversion at their plant down
there," the report quoted Anthony Haynes, general manager of
Caribbean Cement, as saying.

The report notes that the company has signed a deal which could
see it export up to 100 tons of clinker to Venezuela to earn US$9
million.

In the meantime, the report discloses that Mr. Haynes said 2014
should be a better year for Caribbean Cement.

The company saw some recovery this year as the local market
stabilized, the report says. Its intra-company debt was also
restructured, the report adds.

Caribbean Cement Company Limited manufactures and sells cement.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 7, 2013, RJR News said that Caribbean Cement Company Limited
suffered a consolidated loss of J$137 million for the first six
months of 2013 down from J$1.2 billion during the corresponding
period last year, according to RJR News.  The report related that
this year's loss resulted from J$701 million of non-cash foreign
exchange losses compared to J$136 million in 2012.


=============
U R U G U A Y
=============


BANCO DELA REPUBLICA: Moody's Affirms Standalone BFSR at D+
-----------------------------------------------------------
Moody's Investors Service affirmed all ratings for Banco de la
Republica Oriental del Uruguay. These are the D+ standalone bank
financial strength rating, which now maps to a baseline credit
assessment (BCA) of baa3, the Baa2/P-2 and the Baa3/P-3 global
long- and short-term local and foreign currency deposit ratings
respectively, as well as the local and foreign currency Aaa.uy and
Aa1.uy national scale deposit ratings.

The outlook on all ratings is stable.

The following ratings assigned to Banco de la Republica Oriental
del Uruguay were affirmed:

Standalone Bank Financial Strength Rating: D+

Global Local Currency Deposit Rating: Baa2/P-2

Global Foreign Currency Deposit Rating: Baa3/P-3

Local Currency National Scale Deposit Rating: Aaa.uy

Foreign Currency National Scale Deposit Rating: Aa1.uy

The following standalone baseline credit assessment of Banco de la
Republica Oriental del Uruguay was raised:

Standalone baseline credit assessment, raised to baa3 from ba1

Ratings Rationale:

In affirming BROU's deposits ratings, Moody's reflects its
assessment of high probability of support in a situation of stress
to be provided by the Oriental Republic of Uruguay, which owns the
bank and fully guarantees all of its obligations unconditionally.
This lifts the baa3 BCA up, producing a long-term global local-
currency (GLC) deposit rating of Baa2/P-2, and a national scale
rating of Aaa.uy.

In raising the bank's standalone BCA to an investment grade level
Moody's acknowledges BROU's improving financial fundamentals over
the last two years, particularly its earnings generation power,
efficiency metrics, its stable and sizeable deposits base, as well
as its prudent risk management practices as illustrated in a lower
than average nonperforming loan ratio and ample reserve coverage.

Moody's also considers the bank's well established market
positioning and diversified business model, consolidated as the
dominant bank in the Uruguayan financial system, with loan and
deposit market shares of 41% and 43% respectively, and a 131
branch network.

Moody's also pointed to the bank's steady funding as a positive
rating driver. BROU has access to a stable and sizable low-cost
granular deposit base, which is predominantly composed of core
customer deposits sourced from payroll, pensioners and government
deposits in the bank's wide network. Households represent 79% of
BROU's total private sector deposits, providing stable financial
margins and ample liquidity. Non-resident deposits have been
stable over the past years at 4% of total deposits, considerably
lower than the private banks that have in average 22% of non
residential deposits over total.

The ratings capture the bank's good profitability metrics, which
derive largely from lending activities to the private sector,
generating a good fee base for the bank. They also derive from
interbank loans and its investments in securities, a shelter for
the bank's excess liquidity. BROU's net interest margin, at 5%
over the last four quarters, also benefits from increasing
domestic credit demand in a benign scenario of 3.3% real GDP
expansion, according to Moody's, coupled with a high employment
rate and sustained real wages gains. BROU nevertheless faces
increasing competition in the Uruguayan market as the
international banks consolidate their positions and gear up to
take advantage of stronger loan demand.

A key risk for BROU is the rising level of inflation in Uruguay,
which is nearing an annual 9% rate and pressures the bank's
operating expenses, as is the case for the whole Uruguayan banking
system. Uruguayan banks typically present high operating expenses
as a result of largely inelastic labor costs; these costs
represent almost 54% of total operating expenses. However, Moody's
highlighted BROU management's efforts to improve the bank's
efficiency metrics, by placing greater emphasis on alternative and
lower cost distribution channels, the opening of new Mini BROU
branches, and encouraging the use of home banking and telephone
banking, thus fostering economies of scale. Its operating
expenditures to operating income ratio declined to 56.8% as of
September 2013, from 59.4% as of YE2012, even after the recent
absorption of 150 employees and nine branches of Banco Bandes
Uruguay.

The ratings also incorporate BROU's lending appetite, as evidenced
by annual loan growth rates that peaked in 2013 at nearly 15.3%,
up from 11.5% the year before. BROU's non-performing loan ratio,
at 1.8%, has been fairly stable in recent years, given the bank's
large share of payroll accounts and pensioners that collect their
salaries and pensions in the bank. Reserves coverage is also
sound, at 364% of total non-performing loans or 6.7% over gross
loans, indicating that the bank has ample provisions to withstand
potential loans losses.

Moody's also noted that the expansion of the loan book, coupled
with higher capital requirements for operational and systemic
risks, have also led to lower capital ratios, as evidenced by a
tier one ratio that, though adequate, has declined to 15% in 2013,
from 16.4% in 2012.


=================
V E N E Z U E L A
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PETROLEOS DE VENEZUELA: Moody's Cuts Currency Bond Rating to Caa1
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Moody's Investors Service downgraded the foreign currency bond
rating and global local currency rating of Petroleos de Venezuela
(PDVSA) to Caa1 from B2 and B1, respectively, and maintained a
negative outlook on the ratings. Moody's also downgraded CITGO
Petroleum Corporation's Corporate Family Rating to B1 from Ba2;
its Probability of Default rating to B1-PD from Ba2-PD; and its
senior secured ratings on term loans, notes and industrial revenue
bonds to B1, LGD3-43% from Ba2, LGD3-41%. Moody's also assigned a
rating of Ba3, LGD3-30% to CITGO's senior secured bank credit
facility. The rating outlook for CITGO is negative. CITGO is
PDVSA's wholly-owned US-based refining subsidiary.

The rating actions follow Moody's downgrade on December 16, 2013
of the Venezuelan government's foreign currency and local currency
bond ratings to Caa1, from B2 and B1, also with a negative
outlook. The sovereign rating action reflects concerns over the
Venezuela's severe economic stress in the post-Chavez era,
reflected in rising economic imbalances. These imbalances are
exacerbated by government policies, which have resulted in high
inflation, a huge disconnect between official and parallel market
foreign currency exchange rates, a scarcity of many essential
goods and services, and deterioration in the country's external
accounts and foreign currency reserves.

Ratings Rationale:

In downgrading PDVSA's ratings to equal those of the government,
Moody's acknowledges the state oil company's substantial oil and
gas resources, among the largest in the world, and that the
company to date has never defaulted on its debt obligations. In
addition, PDVSA's on-balance-sheet debt obligations remained
relatively unchanged at $39.3 billion as of its latest June 30,
2013 interim financial statements.

However, PDVSA's ratings reflect it its key role as the state oil
company and the government's control over PDVSA's finances and
access to foreign currency. PDVSA is a driver of Venezuela's
economy, a key source of the government's revenues and the
country's primary source of foreign exchange. The government
approves and controls PDVSA's budget and has steeply increased its
transfer payments over the past few years in the form of
royalties, social payments and dividends to support government
spending and social programs, a trend that accelerated in the run-
up to the presidential election in 2012. At the same time, PDVSA
is borrowing heavily from the Central Bank of Venezuela, with
drawings of equivalent $40 billion as of the end of November 2013,
according to bank reports.

Under a scenario of fiscal and economic deterioration in Venezuela
in the post- Chavez era, the government could become even more
dependent on PDVSA, which would further constrain the state oil
company's capital investments and increase an already rising debt
burden.

As a government-related issuer, PDVSA's ratings reflect a high
level of imputed government support and default correlation
between the two entities. Any future negative ratings action
affecting the government's ratings, which have a negative outlook,
would also be likely to result in a downgrade of PDVSA's ratings
as well.

The downgrade of CITGO Petroleum's ratings with a negative outlook
primarily reflects heightened risk associated with PDVSA's
ownership and financial stress. While CITGO's assets are located
in the US and its credit agreements provide certain protections to
lenders, including limitations on dividends, it lacks an
independent board, with its members and senior management
appointed by PDVSA. Meanwhile, the refineries continue to generate
good financial results, fund capital spending internally, and
maintain a solid liquidity profile, including cash and committed
bank facilities.


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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.

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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.

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