/raid1/www/Hosts/bankrupt/TCRLA_Public/140110.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, January 10, 2014, Vol. 15, No. 7
Headlines
B A R B A D O S
CL FIN'L: Barbados to Approve New CLICO Plan Soon
B R A Z I L
AUTOMETAL S.A.: Fitch Affirms IDRs at 'BB'; Outlook Stable
C A Y M A N I S L A N D S
ARBITRAGE ASSOCIATES II: Placed Under Voluntary Wind-Up
BTR ASSET: Placed Under Voluntary Wind-Up
CCBI GROWTH: Commences Liquidation Proceedings
CHASE PRIVATE: Placed Under Voluntary Wind-Up
CHINA OVERSEAS: Commences Liquidation Proceedings
DALEY INVESTMENT: Creditors' Proofs of Debt Due Jan. 13
DISCOVERY INVESTMENTS: Shareholder Receives Wind-Up Report
IONIC CONVERTIBLE: Commences Liquidation Proceedings
IONIC CONVERTIBLE INTERMEDIATE: Commences Liquidation Proceedings
LONGWAY CAPITAL: Placed Under Voluntary Wind-Up
REPSOL YPF: Commences Liquidation Proceedings
ROC CAPITAL: Commences Liquidation Proceedings
SETA INVESTMENTS: Commences Liquidation Proceedings
THE ALCHEMIST: Commences Liquidation Proceedings
TIG PROCELLA: Placed Under Voluntary Wind-Up
TYTO SCIENS: Commences Liquidation Proceedings
J A M A I C A
BANK OF JAMAICA: Ends 2013 With Nearly J$16BB in Losses
NATIONAL COMMERCIAL BANK: Cambio Assoc. Reacts to Statement
M E X I C O
BANCO REGIONAL: S&P Rates Proposed $300MM 144A Senior Notes 'BB-'
- - - - -
===============
B A R B A D O S
===============
CL FIN'L: Barbados to Approve New CLICO Plan Soon
-------------------------------------------------
Caribbean360.com reports that the Barbados government said it will
shortly approve a new plan for the restructuring of the operations
of the Colonial Life Insurance Company (CLICO) in the country.
Barbados Finance and Economic Affairs Minister Chris Sinckler said
that many of the cabinet papers have been completed and submitted
regarding the approval of the formal and final restructuring plan
for CLICO, according to Caribbean360.com.
"We expect thereafter the judicial managers will shortly . . . not
sure of the time frame in a couple of weeks or so, will return to
the courts and indicate to the courts that the government has
thrown its full support behind the restructuring plan which was
identified when they last went to the court and had tentative
approval for it," the report quoted Mr. Sinckler as saying.
The report notes that the appointment of the judicial manager is
part of the initiative by Eastern Caribbean governments, including
Barbados, to recover some of the assets of policy holders with the
Trinidad-based CLICO, which is part of the financially troubled CL
Financial Group.
"We are going to go ahead and implement the Barbados portion of
it. We are still waiting on our OECS (Organisation of Eastern
Caribbean States) partners to make a decision whether they are
going to participate or not and at what level. But we feel that
people have been waiting long enough and we've taken the decision
that we are going to move ahead with that restructuring plan.
Basically that plan says that we create a new company," Mr.
Sinckler told reporters, the report relays.
"We put the insurance business sanitized as it is into that new
company that the government will create. Two property trusts, one
in the OECS and one in Barbados in which the assets will be
placed. We will then issue bonds against the value of the assets
of course you know here is a deficit between what is owed as
liability and what is asset value. I believe about US$400 million
dollars but they are going to do a current valuation to see what's
the difference," Mr. Sinckler added, the report notes.
Mr. Sinckl said once this is done, the authorities here would
invite persons who have EFPA's (Executive Flexible Premium
Annuities) "to take a traditional annuity structured appropriately
to suit their investment, the report adds.
About CLICO International
Colonial Life Insurance Company Ltd. (CLICO) is a member of the CL
Financial Group.
About CL Financial
CL Financial Limited is a privately held conglomerate in Trinidad
and Tobago. Founded as an insurance company by Cyril Duprey,
Colonial Life Insurance Company was expanded into a diversified
company by his nephew, Lawrence Duprey. CL Financial is now one
of the largest local conglomerates in the region, encompassing
over 65 companies in 32 countries worldwide with total assets
standing at roughly US$100 billion.
* * *
As reported in the Troubled Company Reporter-Latin America on
Aug. 6, 2013, Caribbean360.com said that over TT$8 billion worth
of Colonial Life Insurance Company Limited's (CLICO) profitable
business will be transferred to Atruis, a new company that will be
owned by the state. CLICO is a subsidiary of CL Financial
Limited. The Trinidad Express said that the Cabinet approved the
transfer as the Finance and General Purposes Committee continues
to discuss a letter of intent hammered out by the Ministry of
Finance and CL Financial's 400 shareholders, which envisions
taxpayers will recover the more than TT$20 billion Government has
injected since 2009 to keep CL subsidiary CLICO and other
companies afloat, according to Caribbean360.com.
Caribbean360.com noted that CLICO financially caved in on itself
at the end of 2008 after the investment instruments of major
policyholders matured and they wanted hundreds of millions of
dollars they were owed.
Caribbean360.com related that at its annual general meeting in
Sept. 2013, CL Financial shareholders voted to extend the
agreement with Government until August 25, 2014, while Cabinet
decides on a new framework accord to recover the debt owed to
Government through divestment of CL subsidiaries, including
Methanol Holdings, Republic Bank, Angostura Holdings, CL World
Brands and Home Construction Ltd.
Proceeds from the divestment of these assets will go toward
Government's recovery of the billions it pumped into CLICO,
Caribbean360.com said.
===========
B R A Z I L
===========
AUTOMETAL S.A.: Fitch Affirms IDRs at 'BB'; Outlook Stable
----------------------------------------------------------
Fitch Ratings has affirmed Autometal S.A.'s (Autometal) Local and
Foreign Currency Issuer Default Ratings (IDRs) at 'BB', and has
upgraded its National Scale Rating to 'AA-(bra)'. The Rating
Outlook is Stable.
Key Rating Drivers
The upgrade of Autometal's National Scale Rating reflects Fitch's
view that the company is stronger in its current 'BB' IDR.
Autometal has improved its business profile following the on-going
acquisition of Mahindra CIE Automotive (Mahindra CIE) and is
transitioning from a medium-sized regional player to a large-sized
global competitor in the auto-parts industry. The rating action
also incorporates that the company will be able to maintain a
strong liquidity position and low leverage ratios after the
conclusion of this acquisition, compared to its peers on the same
rating category. Fitch expects that Autometal will successfully
integrate Mahindra CIE's operations.
Autometal's IDRs are constrained by its exposure to the cyclical
automotive industry, changes in consumer trends and the volatility
of raw material costs. Additional negative rating factors include
the weaker credit profile of Autometal's parent company, CIE
Automotive (CIE), and the expectation that Autometal will maintain
a high dividend payout ratio of 50% in the medium term. Further
considerations include small and strategic acquisitions as part of
company's growth strategy.
The Stable Outlook reflects Fitch's expectation that Autometal
will manage to recover from the short-term pressures on margins
due to the acquisition of Mahindra CIE's assets. Mahindra CIE
brings new original equipment manufacturers (OEMs) and car-
platforms to Autometal's operations, albeit at lower margins. The
larger presence in markets that are either growing (China and
India) or rebounding (Mexico and U.S.) also contribute to the
margins' recovery. The ratings incorporate the view that the
company will maintain a net adjusted leverage ratio below 1.5x and
solid liquidity reflected in a minimum cash position of BRL450
million.
Achievable Synergies With Mahindra Cie
Fitch believes Autometal will manage to improve the profitability
of its new subsidiary, Mahindra CIE, over the next three to four
years. The agency estimates that EBITDA margins will rise to
13.5% in 2015 from 12.5% expected for 2014 (versus 16.8% in 2012).
Mahindra CIE has pro forma EBITDA margins of 8% compared with
Autometal's standalone 17%. Opportunities lie with Mahindra CIE's
plants in Germany, with current negative margins in comparison to
11% two years ago. Autometal's controller, CIE, has plants in the
same region with 14% EBITDA margins and has already transferred
personnel and expertise to the plants inherited from the Mahindra
Group. Fitch estimates the synergy gains will come from right-
sizing the idle capacity according to the local demand as well as
taking advantage of the attractive labor costs in India. In
addition, Fitch expects the U.S. car market to keep a positive
trend in 2014, and Europe has shown early signs of recovery. Fitch
also expects Autometal will produce better-margin products in
China as of 2014.
Credit Metrics to Remain at Conservative Levels
Fitch expects Autometal to manage its leverage ratios at low
levels after the conclusion of Mahindra CIE acquisition. Total
adjusted net debt to EBITDAR ratio of Autometal may increase up to
1.5x in 2013 and 2014 from -0.1x in 2012. On top of the USD146
million paid to the Mahindra Group and its minority shareholders
in October 2013, Autometal received USD43 million of additional
debt in June 2013 from three plants coming from CIE Automotive and
USD100 million loan in December 2013 from the incorporation of
part of Mahindra subsidiaries. An additional USD80 million debt
is expected for April 2014 with final regulatory approvals of the
Mahindra acquisition. Fitch estimates the approvals will be
granted without major issues. In the last 12 months (LTM) ended
on Sept. 30, 2013, total adjusted debt/EBITDAR was 3.6x, while net
adjusted debt/EBITDAR was 1.3x.
Negative Free Cash Flow Until 2015
Autometal's free cash flow (FCF) should remain negative in the
next couple of years. The incorporation of Mahindra CIE will
pressure Autometal's consolidated EBITDA margins and working
capital needs mostly in 2014. In the LTM ended on Sept. 30, 2013,
cash flow from operations (CFFO) of BRL37 million showed a decline
from the BRL111 million in 2012 as a result of higher working
capital requirements of BRL127 million coming from assets
acquired. Considering capital expenditures of BRL144 million and
dividends of BRL63 million, FCF was negative at BRL170 million.
High Liquidity Position
Autometal's financial profile should continue to present robust
liquidity positions and strong short-term debt coverage ratios.
At the end of September 2013, cash and marketable securities of
BRL734 million compare favorably with short-term debt of BRL101
million and total adjusted debt of BRL1.2 billion, leading to a
short-term coverage ratio of 7.3x. Fitch expects the company to
manage its liquidity position above BRL450 million and its debt
maturity profile in order to reduce refinancing risks.
Diversified Business Model
Autometal will strengthen its business profile following the
expected full incorporation of Mahindra CIE's facilities in April
2014, reaching 38 plants in 10 countries spread across Latina
America, Europe, and Asia. The company currently produces auto-
part components such as plastic molding, metal mechanic, painting,
and stamping to OEMs and a series of auto-industry suppliers.
Revenues come from more than 100 car-platforms, each one
contributing with no more than 7% of total sales. A car platform
is the structure in which the car is built and could be shared
with different vehicles. Sales with the top three OEMs clients,
namely Volkswagen, Ford, and Fiat/Chrysler that represent 48% of
the consolidated revenues are expected to drop to 30%, following
the deal. Also, heavy vehicle products will increase to 40% of
sales from 10% currently, which will improve revenue
diversification. Financial flexibility, global presence, and a
decentralized management help Autometal to face eventual cycles of
the auto industry.
Cie Credit Profile Still Concerns
Fitch expects CIE to reduce its consolidated net leverage to 2.0x
post Mahindra deal from 2.9x in 2012. CIE's leverage rises to an
estimated 2.9x, excluding Autometal. The improvement on CIE's
indebtedness comes from a USD114 million capital injection, while
maintaining the same level of gross debt. As part of the Mahindra
CIE creation, the Mahindra & Mahindra Group acquired 13.5% of CIE,
being 9.5p.p stake from CIE's treasury shares plus 4p.p economic
interest from a capital increase. CIE and Autometal cannot
guarantee each other's debt, but Autometal needs to distribute at
least 50% pay-out rate until 2016.
Rating Sensitivities
Negative rating action would be triggered if Autometal's
management deviates from its leverage target of 2.5x and/or if
negative trends in cash flow generation due to declining sales
volumes materialize. Shareholder friendly actions that result in
higher than expected dividend distributions, and large
acquisitions that change Autometal's capital structure would also
be viewed as negative to the company's ratings.
Positive rating action could occur if synergies from Autometal's
acquisitions are above Fitch's expectations and results in
material improvements in its credit metrics, with stronger free
cash flow generation and improved credit metrics. Favorable
changes in import and fiscal policies that strengthen demand for
Autometal's products and a substantial improvement in CIE's credit
profile on a standalone basis would also be viewed as positive to
Autometal's ratings.
Fitch has taken the following rating actions:
Autometal:
-- Foreign Currency IDR affirmed at 'BB';
-- Local Currency IDR affirmed at 'BB';
-- Long-Term National Scale Rating upgraded to 'AA-(bra)' from
'A+(bra)';
-- Long-Term National Scale Rating for the first debenture
issuance in the amount of BRL250 million due 2017 upgraded to
'AA-(bra)' from 'A+(bra)'.
The Rating Outlook is Stable.
Headquartered in Diadema, Brazi, Autometal S.A. --
http://www.autometal.com.br/-- is a subsidiary of CIE Autometal
S.A. Together with its subsidiaries, engages in the design,
manufacture, and sale of components and subassemblies for the
automotive market in Brazil, the United States, China, Mexico, and
internationally. It produces components and subassemblies for
engine and transmission, chassis or steering wheel, and vehicle
interior and exterior areas of vehicles.
==========================
C A Y M A N I S L A N D S
==========================
ARBITRAGE ASSOCIATES II: Placed Under Voluntary Wind-Up
-------------------------------------------------------
On Nov. 20, 2013, the sole shareholder of Arbitrage Associates II,
Ltd. resolved to voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Dec. 23, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Ogier
c/o Michael Lubin
Telephone: (345) 815-1793
Facsimile: (345) 949-9877
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
BTR ASSET: Placed Under Voluntary Wind-Up
-----------------------------------------
On Nov. 21, 2013, the sole shareholder of BTR Asset Management
Limited resolved to voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Dec. 27, 2013, will be included in the company's dividend
distribution.
The company's liquidator
Ogier
c/o Jonathan Turnham
Telephone: (345) 815-1839
Facsimile: (345) 949-9877
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
CCBI GROWTH: Commences Liquidation Proceedings
----------------------------------------------
On Nov. 20, 2013, the sole shareholder of CCBI Growth Fund GP
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 liquidator is:
Ngai Li
Flat 8A, Royal Garden
27 Repulse Bay Road
Hong Kong
CHASE PRIVATE: Placed Under Voluntary Wind-Up
---------------------------------------------
On Nov. 21, 2013, the shareholders of Chase Private Equity
Partners Corporate Investor, Ltd 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:
Trident Liquidators (Cayman) Ltd
c/o Mrs. Eva Moore
Trident Trust Company (Cayman) Limited
Telephone: (345) 949 0880
Facsimile: (345) 949 0881
P.O. Box 847, George Town Grand Cayman KY1-1103
Cayman Islands
CHINA OVERSEAS: Commences Liquidation Proceedings
-------------------------------------------------
On Nov. 18, 2013, the sole shareholder of China Overseas Finance
(Cayman) I 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 liquidator is:
Mr Liu Jun
Three Pacific Place, 10th Floor
1 Queen's Road East
Hong Kong
DALEY INVESTMENT: Creditors' Proofs of Debt Due Jan. 13
-------------------------------------------------------
The creditors of Daley Investment Ltd. are required to file their
proofs of debt by Jan. 13, 2014, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on Nov. 21, 2013.
The company's liquidator is:
Lion International Management Limited
HSBC House, 68 West Bay Road
Grand Cayman
Cayman Islands
c/o Mr. Philip C Pedro
HSBC International Trustee Limited
Compass Point Bermudiana Road
Hamilton HM 11
Bermuda
Telephone: (441) 299-6482
Facsimile: (441) 299-6526
DISCOVERY INVESTMENTS: Shareholder Receives Wind-Up Report
----------------------------------------------------------
The shareholder of Discovery Investments LDC received on Dec. 24,
2013, the liquidator's report on the company's wind-up proceedings
and property disposal.
The company commenced liquidation proceedings on Nov. 21, 2013.
The company's liquidator is:
Stuarts Walker Hersant
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
P.O. Box 2510 Grand Cayman KY1-1104
Cayman Islands
IONIC CONVERTIBLE: Commences Liquidation Proceedings
----------------------------------------------------
On Nov. 21, 2013, the sole shareholder of Ionic Convertible Fund
Ltd. resolved to voluntarily liquidate the company's business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
David Stephen Sargison
31 Woodland Drive, Lower Valley
P.O. Box 414 Savnnah Grand Cayman KY1-1502
Cayman Islands
Telephone: +1 (345) 946 7274
e-mail: dss@sargies.com
IONIC CONVERTIBLE INTERMEDIATE: Commences Liquidation Proceedings
-----------------------------------------------------------------
On Nov. 21, 2013, the sole shareholder of Ionic Convertible
Intermediate Fund Ltd resolved to voluntarily liquidate the
company's business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
David Stephen Sargison
31 Woodland Drive, Lower Valley
P.O. Box 414 Savnnah Grand Cayman KY1-1502
Cayman Islands
Telephone: +1 (345) 946 7274
e-mail: dss@sargies.com
LONGWAY CAPITAL: Placed Under Voluntary Wind-Up
-----------------------------------------------
On Nov. 20, 2013, the sole member of Longway Capital Limited
resolved to voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Dec. 23, 2013, will be included in the company's dividend
distribution.
The company's liquidator
Gene Dacosta
c/o Jonathan McLean
Telephone: (345) 814 7376
Facsimile: (345) 945 3902
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
REPSOL YPF: Commences Liquidation Proceedings
---------------------------------------------
At an extraordinary meeting held on Nov. 21, 2013, the members of
Repsol YPF Trading Y Transporte Singapur Ltd. resolved to
voluntarily liquidate the company's business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Repsol Trading, S.A
c/o Maples and Calder, Attorneys-at-law
P.O. Box 309, Ugland House
Grand Cayman KY1-1104
Cayman Islands
ROC CAPITAL: Commences Liquidation Proceedings
----------------------------------------------
On Nov. 21, 2013, the members of ROC Capital Partners (Cayman),
Ltd. resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Jan. 6, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Mourant Ozannes Cayman Liquidators Limited
Mourant Ozannes
Attorneys-at-Law for the Company
Reference: Tom Berry
Telephone: (+1) 345 814 9239
Facsimile: (+1) 345 949 4647; or
Mourant Ozannes Cayman Liquidators Limited
Reference: Peter Goulden
Telephone: (+1) 345 949 4123
Facsimile: (+1) 345 949 4647
94 Solaris Avenue, Camana Bay
P.O. Box 1348 Grand Cayman KY1-1108
Cayman Islands
SETA INVESTMENTS: Commences Liquidation Proceedings
---------------------------------------------------
Seta Investments Inc. commenced liquidation proceedings.
Only creditors who were able to file their proofs of debt by
Dec. 23, 2013, will be included in the company's dividend
distribution.
The company's liquidator
Alexander Furth
c/o Arcadia Group Ltd.
P.O. Box 10300 Grand Cayman KY1-1003
Cayman Islands
Telephone: (345) 945 1830
THE ALCHEMIST: Commences Liquidation Proceedings
------------------------------------------------
On Nov. 19, 2013, the sole shareholder of The Alchemist Asia Fund
Ltd resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
Dec. 23, 2013, will be included in the company's dividend
distribution.
The company's liquidator
Michael C. Lindsay
11 Frensham House
Claremont Road
Surbiton, Surrey KT6 4RG
United Kingdom
TIG PROCELLA: Placed Under Voluntary Wind-Up
--------------------------------------------
On Nov. 20, 2013, the sole shareholder of TIG Procella Fund, Ltd
resolved to voluntarily wind up the company's operations.
Only creditors who were able to file their proofs of debt by
Dec. 23, 2013, will be included in the company's dividend
distribution.
The company's liquidator is:
Ogier
c/o Michael Lubin
Telephone: (345) 815-1793
Facsimile: (345) 949-9877
89 Nexus Way, Camana Bay
Grand Cayman KY1-9007
Cayman Islands
TYTO SCIENS: Commences Liquidation Proceedings
----------------------------------------------
On Nov. 21, 2013, the sole shareholder of Tyto Sciens SPV I Ltd
resolved to voluntarily liquidate the company's business.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Christopher P. Meyering
667 Madison Avenue
New York
New York 10065, USA
=============
J A M A I C A
=============
BANK OF JAMAICA: Ends 2013 With Nearly J$16BB in Losses
-------------------------------------------------------
RJR News reports that the Bank of Jamaica ended 2013 with nearly
J$16 billion dollars in losses.
Its final balance sheet for the year dated December 24 shows year
to date losses of J$15-point-9-2 billion dollars, according to RJR
News.
The Central Bank had J$355 billion in assets up from J$314 billion
in 2012, the report notes.
Bank of Jamaica, the central bank of Jamaica, issues and redeems
notes and coins.
NATIONAL COMMERCIAL BANK: Cambio Assoc. Reacts to Statement
-----------------------------------------------------------
RJR News reports that the Cambio Association of Jamaica said its
members are in limbo following the disclosure by National
Commercial Bank that it will cease doing most types of business
with the sector.
In October, the bank gave a three month schedule for the change to
take effect, according to RJR News.
The report relates that Regional representative for the Cambio
Association, Valenton Wint, told the Financial Report that the
matter has not been settled and the members are uncertain.
The report notes that NCB had stated that the decision to exit
most relationships with persons holding cambio licences was due to
exposure to money laundering and terrorist financing risks.
As reported in the Troubled Company Reporter - Latin America on
Jan. 8, 2014, go-jamaica.com reports that National Commercial Bank
(NCB) Jamaica has decided to exit the remittance business to
mitigate against the risk of money laundering, financing of
terrorism and lottery scam activities. As a result, the Bank said
that by mutual agreement, effective January 22 it will be
cancelling its existing agent relationship with MoneyGram Services
for NCB Remittance Services (UK) Limited, and March 31 for NCB
Remittances Services (Jamaica) Limited, according to go-
jamaica.com. The report related that NCB said the decision was
made because its continued provision of remittance services has
negatively impacted the global risks facing the group.
* * *
As reported in the Troubled Company Reporter-Latin America on
Oct. 1, 2013, Standard & Poor's Ratings Services raised its issuer
credit ratings on National Commercial Bank Jamaica Ltd. (NCBJ) to
'B-/B' from 'CCC+/C'. The upgrade follows Jamaica's entrance into
an IMF (International Monetary Fund) program, which along with
additional external funding from other multilateral lenders,
improved the country's external liquidity and bolstered investor
confidence. S&P removed the ratings on the bank from the
CreditWatch negative and assigned a stable outlook. NCBJ's 'b'
stand-alone credit profile (SACP) remains unchanged.
===========
M E X I C O
===========
BANCO REGIONAL: S&P Rates Proposed $300MM 144A Senior Notes 'BB-'
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' issue-level
rating to Banco Regional S.A.E.C.A.'s (BB-/Stable/--) proposed
144A senior notes for up to $300 million, with a medium- to long-
term tenor of up to 10 years.
The rating on the notes is the same as the long-term issuer credit
rating on the bank and reflects S&P's view that the notes will
rank pari passu with its other senior unsecured debt and will be
the bank's direct, unsecured, unsubordinated, and unconditional
obligations. The bank will use the proceeds primarily to fund its
expansion in the domestic market.
The ratings on Banco Regional reflect its "strong" business
position in the Paraguayan banking system, "weak" capital and
earnings (based on S&P's risk-adjusted capital ratios
methodology), "adequate" risk position, "average" funding, and
"adequate" liquidity. The 'BB-' issuer credit rating is at the
same level as the bank's 'bb-' stand-alone credit profile, because
Banco Regional does not receive external (group or government)
support. Rabobank Financial Institutions Development B.V. (not
rated) owns 40% of the bank and local shareholders own the
remainder.
RATINGS LIST
Banco Regional S.A.E.C.A.
Issuer credit rating BB-/Stable/--
Rating Assigned
Up to $300 Million Sen Unscd Notes BB-
***********
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.
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for actual trades are probably different. Our objective is to
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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
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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, and Peter A.
Chapman, Editors.
Copyright 2014. All rights reserved. ISSN 1529-2746.
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of the same firm for the term of the initial subscription or
balance thereof are US$25 each. For subscription information,
contact Peter A. Chapman at 215-945-7000 or Nina Novak at
202-241-8200.
* * * End of Transmission * * *