TCRLA_Public/140214.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, February 14, 2014, Vol. 15, No. 32


                            Headlines



A R G E N T I N A

BANCO CETELEM: Moody's Reviews Ba3 Rating for Possible Downgrade


B A R B A D O S

BARBADOS: Executive Board Concludes 2013 Article IV Consultation


B R A Z I L

GOL LINHAS: Substitutes Issuer for Senior Notes
JBS SA: Acquires Frinal for Undisclosed Sum


C A Y M A N  I S L A N D S

AMERASIAN CAPITAL: Shareholders Receive Wind-Up Report
CABA LIMITED: Shareholders Receive Wind-Up Report
CITY FINANCIAL: Commences Liquidation Proceedings
DRAGONSPELL HOLDINGS: Shareholders Receive Wind-Up Report
FRUJUICE COMPANY: Shareholder Receives Wind-Up Report

GARRIGUE LIMITED: Members Receive Wind-Up Report
HELIUM MASTER: Shareholders Receive Wind-Up Report
JAPAN SPECIAL: Commences Liquidation Proceedings
LIMESTONE FUND: Shareholders Receive Wind-Up Report
MCT CAPITAL: Shareholders Receive Wind-Up Report

RAM CAPITAL: Shareholders Receive Wind-Up Report
RHONE-SAM: Shareholders Receive Wind-Up Report
RITCHIE DEBT: Shareholders Receive Wind-Up Report
RITCHIE RML: Shareholders Receive Wind-Up Report
SAMARKAND LEASING: Shareholder Receives Wind-Up Report

SL PREMIUM: Shareholders Receive Wind-Up Report
SPECIAL CREDIT: Shareholders Receive Wind-Up Report
TACTICAL EQUITY: Commences Liquidation Proceedings
THE IVIRON: Shareholders Receive Wind-Up Report
VENCAP 7: Shareholders Receive Wind-Up Report


J A M A I C A

JAMAICA: Moody's Affirms Caa3 Rating; Changes Outlook to Positive


M E X I C O

BANCO MERCANTIL: Moody's Reviews Ba1 Jr. Subordinated Debt Rating


P U E R T O   R I C O

PUERTO RICO: Fitch Cuts GO and Related Debt Ratings to 'BB'
PUERTO RICO: Investors Sell Bonds, PRICA Adds Uncertainty


                            - - - - -


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A R G E N T I N A
=================


BANCO CETELEM: Moody's Reviews Ba3 Rating for Possible Downgrade
----------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo said that
it is continuing its review for possible downgrade of Banco
Cetelem's ratings following the announcement of its acquisition by
the Group ST (unrated), from BNP Paribas Personal Finance and
COFICA BAIL S.A., which respectively hold 95% and 5% of total
stake of Cetelem Argentina.

The ratings under review include the bank's Ba3 local currency
deposit and debt ratings, and the (P)Ba3 and (P)B3 local and
foreign currency debt rating of the MTN program. At the same time,
Moody's Latin America placed under review the Aaa.ar local
currency deposit and debt ratings in the Argentinean national
scale, and the A2.ar national scale foreign currency debt rating.

The following ratings remain on review for possible downgrade:

Long-term global local currency deposit rating at Ba3, placed
under review for possible downgrade

Long-term national scale local currency deposit rating at Aaa.ar,
placed under review for possible downgrade

Global local currency senior debt rating of the MTN Program at
(P)Ba3, placed under review for possible downgrade

Global foreign currency senior debt rating of the MTN at (P)B3 ,
placed under review for possible downgrade

Global local currency senior debt rating at Ba3, placed under
review for possible downgrade

National scale local currency senior debt rating at Aaa.ar, placed
under review for possible downgrade

National scale foreign currency senior debt rating at A2.ar ,
placed under review for possible downgrade

Ratings Rationale

The Ba3 deposit rating of Cetelem Argentina currently incorporates
the bank's Baseline Credit Assessment (BCA) of b3, as well as
Moody's assessment of a high probability of parental support to be
provided by its parent, BNP Paribas, rated A2, in an event of
stress. Because BNP Paribas explicitly guarantees all Cetelem
Argentina's liabilities, the subsidiary deposit rating benefits
from three notches of uplift from its BCA.

The review for possible downgrade of Cetelem's ratings, therefore,
is based on the announced change in its ownership and control,
because guarantees provided by BNP Paribas will likely no longer
be available to Cetelem upon conclusion of the deal. Completion of
the transaction is subject to regulatory approval by the
Argentinean Central Bank.

The ST Group, unrated, is the controlling shareholder of Banco de
Servicios y Transacciones (BST), rated by Moody's at B3 for
deposits. It provides financial services to corporates as well as
to the consumer finance segment, targeting a similar client base
as Cetelem Argentina.

Banco Cetelem Argentina S.A. is headquartered in Buenos Aires,
with assets of ARS1.2 billion and equity of ARS149.3 million as of
September 2013.


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


BARBADOS: Executive Board Concludes 2013 Article IV Consultation
----------------------------------------------------------------
On February 10, 2014, the Executive Board of the International
Monetary Fund (IMF) concluded the 2013 Article IV consultation
with Barbados.

Barbados is one of the most developed islands in the Caribbean,
with per capita income at US$16,150 and the best human development
indicators in the region.  The country was strongly affected by
the global financial crisis in 2008 and macroeconomic performance
has been weak since then.  The economy is estimated to have
contracted by 0.7 percent in 2013, with weakness across both the
traded and non-traded sectors.  Long stay tourist arrivals, which
are highly dependent on the U.K. and North American markets, were
down by 5.2 percent in 2013.  Inflation dropped sharply to 1.9
percent by end-November, while unemployment rose to 11.7 percent.
Expansionary fiscal policies and weak revenues have led to a surge
in public debt and fiscal financing pressures.  The central
government deficit widened to 8.1 percent of Gross Domestic
Product (GDP) in 2013/14 (year ending March) and is expected to
reach 9.6 percent of GDP in 2013/14. Central government gross debt
(excluding holdings of securities by the National Insurance
Scheme) rose to 94 percent of GDP at end-September 2013 from under
60 percent of GDP in 2009.  Weak tourism and export receipts
contributed to a widening in the external current account deficit
to an estimated 11.4 percent of GDP in 2013.  Together with a
sharp drop in private capital inflows, foreign reserves declined
during 2013 to close out the year at US$578 million, equivalent to
about 3.2 months of imports.  The financial system appears to be
well capitalized, but credit quality and profitability have
suffered with the prolonged downturn.

Recognizing the need for urgent action, the authorities announced
ambitious fiscal consolidation measures during the second half of
2013 aimed at strengthening the fiscal position and arresting the
slide in reserves.  These measures included a reduction in the
size of the civil service by about 13 percent, further downsizing
by attrition, wage cuts for elected and appointed officials, and a
two year nominal wage freeze.  If fully implemented and assuming
slippages are corrected with offsetting measures, these actions
could lower the fiscal deficit to 4.9 percent of GDP, and would
help to restore stability to external flows.  Output is projected
to fall by 1.2 percent in 2014 before recovering modestly in 2015,
supported by capital inflows to finance tourism and energy related
projects.  The debt-to-GDP ratio could level off by 2015/16 and
decline slowly thereafter, though foreign reserves would remain
below desirable levels.

However, the near term outlook will depend on vigorous and timely
implementation of the proposed adjustment measures, and the
consequences of policy slippage would likely be significant.

                    Executive Board Assessment

Executive Directors noted that Barbados has not succeeded in
recovering from the adverse consequences of the global financial
crisis, and faces considerable challenges including low growth, a
high fiscal deficit and debt, and declining foreign reserves.
Downside risks are significant, and strong and prompt adjustment
is crucial.  Directors were encouraged by the authorities'
determination to undertake the measures needed to stabilize the
economy and resume a sustainable growth path.  They looked forward
to sustained implementation.

Directors agreed that a frontloaded fiscal consolidation is
necessary in the current circumstances and stressed the importance
of reining in spending and clearing arrears.  They welcomed the
measures announced in the second half of 2013 and urged their
prompt implementation, which should raise confidence, stem the
government's cash flow needs, and increase foreign reserves.  For
the coming years, Directors encouraged the authorities to consider
additional tightening, focusing on growth-friendly measures, to
put debt on a steeper downward trajectory.  They noted that a
debt-to-GDP target could serve as a useful medium-term anchor.

Directors saw scope for raising revenues by broadening the base,
reducing tax exemptions, and improving tax and customs
administration.  They also stressed the need for public enterprise
reforms, particularly to improve oversight and accountability. In
light of ongoing efforts to rein in the wage bill, Directors
stressed the importance of preserving an adequate and well-
targeted social safety net.

Directors noted the authorities' commitment to the nominal
exchange rate anchor.  They encouraged the central bank to
reorient monetary policy towards supporting the exchange rate peg
by curtailing direct financing of the government, and allowing
domestic short-term interest rates to rise to a level that
reflects a credible country risk premium.

Directors underscored the need for a growth strategy focused on
improving the business climate while preserving Barbados's long-
standing tradition of equity and social cohesion.  While Barbados
fares reasonably well in international surveys of competitiveness,
Directors encouraged efforts to strengthen competitiveness in the
tourism and international business sectors, and to lower labor
costs.  They noted that pending large investment projects should
help to raise productivity and support reserve levels.  They
encouraged the authorities to divest some of the government's
commercial assets, tackle labor market rigidities, and reduce the
cost of doing business, while reducing reliance on tax incentives.
Directors commended the strides made by the authorities in
improving financial sector regulatory and supervisory frameworks.
While domestic banks appear resilient to shocks, Directors noted
the risks posed by a negative sovereign-financial feedback loop as
well as weakening asset quality.  They stressed the importance of
continued close supervision of both banks and non-bank financial
institutions, and looked forward to implementation of the
recommendations of the Financial Sector Assessment Program (FSAP)
update.


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


GOL LINHAS: Substitutes Issuer for Senior Notes
-----------------------------------------------
GOL Linhas Aereas Inteligentes S.A. disclosed substitution of the
issuer for the Senior Notes, originally issued by its subsidiary
VRG Linhas Aereas S.A.

Thus, Gol LuxCo S.A., another subsidiary of the Company, became,
on February 12, 2014, the issuer of the Senior Notes Due 2023,
priced at 10.75%.  The notes will maintain its original
characteristics, generating primary obligations to Gol LuxCo S.A.,
remaining, however, fully guaranteed by VRG and the Company.

GOL Linhas Aereas Inteligentes S.A. is a low-cost and low-fare
airline in Latin America, offers around 970 daily flights to 65
destinations in 10 countries in South America, Caribbean and the
United States under the GOL and VARIG brands, using a young,
modern fleet of Boeing.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 7, 2013, Fitch Ratings assigned an expected rating of
'B/RR5(exp)' to Gol Linhas Aereas Inteligentes S.A.'s proposed
unsecured notes.  Fitch also assigned a 'B+' rating to the
Company's foreign and local currency long-term Issuer Default
Ratings.


JBS SA: Acquires Frinal for Undisclosed Sum
-------------------------------------------
meatpoultry.com reports that JBS SA is set to expand its poultry
operations with the purchase of Frinal, a poultry processor based
in Garibaldi, Rio Grande do Sul state, according to news reports.
Details of the transaction were not disclosed.

JBS SA is a multinational food processing company, producing
factory processed beef, chicken and pork, and also selling by-
products from the processing of these meats.  It is headquartered
in Sao Paulo. It was founded in 1953 in Anapolis, Goias. The
company has 150 industrial plants around the world.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
Oct. 24, 2013, Fitch Ratings affirmed the foreign and local
currency Issuer Default Ratings (IDRs) of JBS S.A. (JBS) at 'BB-'
as well as its 'A-(bra)' national scale rating.  Fitch has also
affirmed at 'BB-' rating on the notes due in 2016 issued by JBS
and the 'A-(bra)' rating of its debentures due in 2015.


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


AMERASIAN CAPITAL: Shareholders Receive Wind-Up Report
------------------------------------------------------
The shareholders of Amerasian Capital Corp. received on Jan. 14,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          Trident Liquidators (Cayman) Limited
          c/o Eva Moore
          Trident Liquidators (Cayman) Ltd
          Telephone: (345) 949 0880
          Facsimile: (345) 949 0881
          One Capital Place, 4th Floor
          P.O. Box 847, George Town,
          Grand Cayman, KY1-1103
          Cayman Islands


CABA LIMITED: Shareholders Receive Wind-Up Report
-------------------------------------------------
The shareholders of Caba Limited received on Jan. 29, 2014, the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

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


CITY FINANCIAL: Commences Liquidation Proceedings
-------------------------------------------------
On Dec. 9, 2013, the sole shareholder of City Financial Asian
Absolute Growth Fund resolved to voluntarily liquidate the
company's business.

Only creditors who were able to file their proofs of debt by
Feb. 10, 2014, will be included in the company's dividend
distribution.

The company's liquidators are:

          Keiran Hutchison
          Robin Lee McMahon
          c/o Barry MacManus
          Ernst & Young Ltd, 62 Forum Lane
          Camana Bay
          P.O. Box 510, Grand Cayman, KY1-1106
          Cayman Islands
          Telephone: (345) 814 8997
          Facsimile: (345) 814 8529


DRAGONSPELL HOLDINGS: Shareholders Receive Wind-Up Report
---------------------------------------------------------
The shareholders of Dragonspell Holdings Limited received on
Jan. 13, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          CDL Company Ltd.
          P.O. Box 31106 Grand Cayman KY1-1205
          Cayman Islands


FRUJUICE COMPANY: Shareholder Receives Wind-Up Report
-----------------------------------------------------
The shareholder of Frujuice Company Limited received on Nov. 20,
2013, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          UTC Management Ltd.
          Bahamas Financial Centre
          Shirley & Charlotte Streets
          Nassau
          Bahamas


GARRIGUE LIMITED: Members Receive Wind-Up Report
------------------------------------------------
The members of Garrigue Limited received on Dec. 17, 2013, the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Eagle Holdings Ltd.
          c/o Barclays Private Bank & Trust (Cayman) Limited
          FirstCaribbean House, 4th Floor
          P.O. Box 487 Grand Cayman KY1-1106
          Cayman Islands


HELIUM MASTER: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Helium Master Fund Limited received on
Jan. 15, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Syquant Capital
          Laurent Boscherel
          c/o Syquant Capital
          67 rue la Boetie
          75008 Paris
          France
          Telephone: +331.42.56.56.27


JAPAN SPECIAL: Commences Liquidation Proceedings
------------------------------------------------
On Dec. 10, 2013, the shareholder of Japan Special Investments
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:

          Stephen Nelson
          Telephone: (345) 949.4544
          Facsimile: (345) 949.8460
          Charles Adams Ritchie & Duckworth
          P.O. Box 709 122 Mary Street
          Grand Cayman KY1-1107
          Cayman Islands


LIMESTONE FUND: Shareholders Receive Wind-Up Report
---------------------------------------------------
The shareholders of Limestone Fund SPC received on Jan. 8, 2014,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Avalon Ltd.
          c/o Avalon Management Limited
          Landmark Square, 1st Floor
          64 Earth Close, West Bay Beach
          P.O. Box 715 Grand Cayman KY1-1107
          Cayman Islands
          Facsimile: +1 (345) 769-9351


MCT CAPITAL: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of MCT Capital Management Ltd. received on
Jan. 17, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Fides Limited
          P.O. Box 10338, Grand Cayman KY1-1003
          Cayman Islands
          Tel: 345-949-7232


RAM CAPITAL: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of Ram Capital Structure Arbitrage, Ltd. received
on Jan. 9, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Avalon Ltd.
          Landmark Square, 1st Floor
          64 Earth Close, West Bay Beach
          P.O. Box 715 Grand Cayman KY1-1107
          Cayman Islands
          Facsimile: +1 (345) 769-9351


RHONE-SAM: Shareholders Receive Wind-Up Report
----------------------------------------------
The shareholders of Rhone-Sam Select (Cayman), Ltd received on
Jan. 9, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Avalon Ltd.
          Landmark Square, 1st Floor
          64 Earth Close, West Bay Beach
          P.O. Box 715 Grand Cayman KY1-1107
          Cayman Islands
          Facsimile: +1 (345) 769-9351


RITCHIE DEBT: Shareholders Receive Wind-Up Report
-------------------------------------------------
The shareholders of Ritchie Debt Acquisition Fund, Ltd. received
on Jan. 9, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Avalon Ltd.
          Landmark Square, 1st Floor
          64 Earth Close, West Bay Beach
          P.O. Box 715 Grand Cayman KY1-1107
          Cayman Islands
          Facsimile: +1 (345) 769-9351


RITCHIE RML: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of Ritchie RML Capital III, Ltd. received on
Jan. 9, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Avalon Ltd.
          Landmark Square, 1st Floor
          64 Earth Close, West Bay Beach
          P.O. Box 715 Grand Cayman KY1-1107
          Cayman Islands
          Facsimile: +1 (345) 769-9351


SAMARKAND LEASING: Shareholder Receives Wind-Up Report
------------------------------------------------------
The shareholder of Samarkand Leasing (Cayman Islands) Limited
received on Dec. 3, 2013, the liquidator's report on the company's
wind-up proceedings and property disposal.

The company's liquidator is:

          Eagle Holdings Ltd.
          c/o Barclays Private Bank & Trust (Cayman) Limited
          FirstCaribbean House, 4th Floor
          P.O. Box 487 Grand Cayman KY1-1106
          Cayman Islands
          Telephone: (345) 949-7128


SL PREMIUM: Shareholders Receive Wind-Up Report
-----------------------------------------------
The shareholders of SL Premium Equity Fund Ltd. received on
Jan. 17, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Fides Limited
          P.O. Box 10338, Grand Cayman KY1-1003
          Cayman Islands
          Tel: 345-949-7232


SPECIAL CREDIT: Shareholders Receive Wind-Up Report
---------------------------------------------------
The shareholders of Special Credit Opportunities, Ltd. received on
Jan. 9, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Avalon Ltd.
          Landmark Square, 1st Floor
          64 Earth Close, West Bay Beach
          P.O. Box 715 Grand Cayman KY1-1107
          Cayman Islands
          Facsimile: +1 (345) 769-9351


TACTICAL EQUITY: Commences Liquidation Proceedings
--------------------------------------------------
On Dec. 9, 2013, the sole shareholder of Tactical Equity Partners,
Ltd resolved to voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
Jan. 30, 2014, will be included in the company's dividend
distribution.

The company's liquidator is:

          Mourant Ozannes Cayman Liquidators Limited
          Attorneys-at-Law for the Company
          Reference: NDL
          Telephone: +1 (345) 949 4123
          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


THE IVIRON: Shareholders Receive Wind-Up Report
-----------------------------------------------
The shareholders of The Iviron Fund received on Jan. 17, 2014, the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Fides Limited
          P.O. Box 10338, Grand Cayman KY1-1003
          Cayman Islands
          Tel: 345-949-7232


VENCAP 7: Shareholders Receive Wind-Up Report
---------------------------------------------
The shareholders of Vencap 7 LLC received on Jan. 24, 2014, the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Ian D. Stokoe
          c/o Adam Keenan
          Telephone: (345) 914 8743
          Facsimile: (345) 945 4237
          P.O. Box 258 Grand Cayman KY1-1104
          Cayman Islands


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J A M A I C A
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JAMAICA: Moody's Affirms Caa3 Rating; Changes Outlook to Positive
-----------------------------------------------------------------
Moody's Investors Service has changed the outlook on Jamaica's
government bond rating to positive from stable. The Caa3 rating
has been affirmed.

The outlook change is based on:

1. Recent and anticipated improvements on key fiscal and debt
metrics.

2. Expectations that Jamaica's government will continue meeting
targets under its current IMF program.

In addition, the ratings of Air Jamaica Limited and National Road
Operating and Construction Company Limited, both tied to the
rating of the government of Jamaica, are affirmed at Caa3. The
outlook on both entities is changed to positive from stable.

Ratings Rationale

In May 2013 the IMF approved a $932 million Arrangement under the
International Monetary Fund (IMF) Extended Fund Facility. Since
then, two reviews conducted by the IMF have found that Jamaica has
met all the quantitative criteria. The positive outlook is
predicated on a continued compliance with IMF program targets
resulting in no changes to the currently planned IMF loan
disbursements.

The role of the IMF has been instrumental in underpinning
Jamaica's ongoing fiscal consolidation as well as the approval of
several fiscal and economic reforms.

Moody's expect Jamaica's central government fiscal deficit to drop
to 0.1% of GDP in FY 2013/2014 and less than 1% of GDP in FY
2014/15, compared to an average 5.6% of GDP deficit from 2003
through 2012. The lower fiscal deficits compare favorably to
rating peers and are significantly lower than the 4% Caa median.
Reduced fiscal deficits support lower debt metrics and Moody's
estimate central government debt will likely fall below 130% of
GDP in FY 2014/15 from 134% last year.

Jamaica is on track to achieve the 7.5% primary surplus target for
FY 2013/14. The two main components on the budget's expenditure
side -- (i) wages and salaries and (ii) interest - are projected
to decrease relative to GDP driven by a wage freeze in the public
sector and lower interest costs resulting from the 2013 debt
restructuring.

Given the front-loaded nature of the IMF program most of the
required fiscal consolidation is already in place. Key policy and
structural reform measures have been legislated and Moody's expect
the government will manage to keep moderate fiscal deficits and
that the debt burden will continue its gradual downward trend.

Jamaica's Caa3 rating reflects the country's low economic
development, weak government finances, and very high vulnerability
to shocks.

Jamaica's $8,916 per capita GDP (PPP basis, data for 2012) is on
par with that of rating peers, but GDP growth has averaged less
than 1% annually during the last decade. Jamaica's economic growth
is among the lowest of all countries rated by Moody's - GDP growth
was negative in four of the last five years. Low GDP growth is the
result of a series of structural factors that will be hard to
change in the medium term and will likely remain a ratings
constraint for the foreseeable future.

The economy is highly vulnerable to external shocks given the
importance of tourism to the economy and continued need for
external financing.

What Could Move The Rating Up/Down

Continued reductions of fiscal and government debt metrics
together with continued IMF support could lead to a ratings
upgrade. Failure to avoid a persistent increase in debt ratios
and/or continued low economic growth could lead to a negative
rating action.

GDP per capita (PPP basis, US$): 8,916 (2012 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): -0.5% (2012 Actual) (also known as GDP
Growth)

Inflation Rate (CPI, % change Dec/Dec): 8% (2012 Actual)

Gen. Gov. Financial Balance/GDP: -4.1% (2012 Actual) (also known
as Fiscal Balance)

Current Account Balance/GDP: -12.9% (2012 Actual) (also known as
External Balance)

External debt/GDP: 96.9% (2012 Actual)

Level of economic development: Low level of economic resilience

Default history: At least one default event (on bonds and/or
loans) has been recorded since 1983.

On 06 February 2014, a rating committee was called to discuss the
rating of the government of Jamaica. The main points raised during
the discussion were: The issuer's fiscal or financial strength,
including its debt profile, has materially increased. Expectations
that Jamaica's government will continue meeting targets under its
current IMF program.

The principal methodology used in these ratings was Sovereign Bond
Ratings published in September, 2013.

The weighting of all rating factors is described in the
methodology used in this rating action, if applicable.



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


BANCO MERCANTIL: Moody's Reviews Ba1 Jr. Subordinated Debt Rating
-----------------------------------------------------------------
Moody's Investors Service upgraded to A3, from Baa1, the long-term
foreign currency deposit ratings of BBVA Bancomer, S.A. (BBVA
Bancomer), Banco Nacional de Mexico, S.A. (Banamex), Banco
Santander (Mexico), S.A. (Santander Mexico), Banco Mercantil del
Norte, S.A. (Banorte), HSBC Mexico, S.A. (HSBC Mexico) and
Scotiabank Inverlat, S.A. (Scotiabank M'xico).

Moody's changed the outlook to positive, from stable, on BBVA
Bancomer, S.A. Texas Agency's long-term local currency Baa2
subordinated and Baa3 (hyb) junior subordinated debt ratings. In
addition, Moody's changed the outlook on Santander Mexico's long-
term foreign currency Ba1 (hyb) subordinated debt rating to
positive, from stable. Finally, Banorte's long-term foreign
currency Baa3 (hyb) subordinated debt rating and long-term foreign
currency Ba1 (hyb) junior subordinated debt rating, were placed on
review for upgrade.

The outlooks on HSBC Mexico and Scotiabank Mexico's ratings remain
stable.

A detailed list of these rating actions is provided below.

At the same time, Moody's upgraded to A3, from Baa1, the long-term
foreign currency issuer ratings of four government-related issuers
(GRIs), including Banco Nacional de Comercio Exterior, S.N.C.
(Bancomext), Banco Nacional de Obras y Servicios Publicos, S.N.C.
(Banobras), Sociedad Hipotecaria Federal, S.N.C. (SHF) and
Instituto para la Proteccion al Ahorro Bancario (IPAB). The
outlook on all the ratings remains stable.

The rating actions follow Moody's upgrade to A3, from Baa1 of
Mexico's government bond ratings and country ceilings. For details
on this rating action please refer to Moody's press release
"Moody's upgrades Mexico's sovereign rating to A3 from Baa1;
stable outlook", dated 5 February 2014.

The Following Ratings Were Upgraded:

BBVA Bancomer, S.A.

Long-term foreign currency deposit rating: Upgrade to A3, from
Baa1

Banco Nacional de Mexico, S.A.

Long-term foreign currency deposit rating: Upgrade to A3, from
Baa1

Banco Santander (Mexico), S.A.

Long-term foreign currency deposit rating: Upgrade to A3, from
Baa1

Banco Mercantil del Norte, S.A.

Long-term foreign currency deposit rating: Upgrade to A3, from
Baa1

HSBC Mexico, S.A.

Long-term foreign currency deposit rating: Upgrade to A3, from
Baa1

Outlook: Stable

Scotiabank Inverlat, S.A.

Long-term foreign currency deposit rating: Upgrade to A3, from
Baa1

Outlook: Stable

Banco Nacional de Comercio Exterior, S.N.C.

Long-term foreign currency issuer rating: Upgrade to A3, from Baa1

Banco Nacional de Obras y Servicios Publicos, S.N.C.

Long-term foreign currency issuer rating: Upgrade to A3, from Baa1

Sociedad Hipotecaria Federal, S.N.C.

Long-term foreign currency issuer rating: Upgrade to A3, from Baa1

Instituto para la Protección al Ahorro Bancario

Long-term foreign currency issuer rating: Upgrade to A3, from Baa1

The Following Ratings were Placed on Review for Upgrade:

Banco Mercantil del Norte, S.A.

Long-term foreign currency subordinated debt rating of Baa3 (hyb)

Long-term foreign currency junior subordinated debt rating of Ba1
(hyb)

The Following Ratings were affirmed, Outlook Changed to Positive,
from Stable:

BBVA Bancomer, S.A. Texas Agency

Long-term local currency subordinated debt rating of Baa2, outlook
changed to positive, from stable

Long-term local currency junior subordinated debt rating of Baa3
(hyb), outlook changed to positive, from stable

Overall rating outlook: Stable(m)

Banco Santander (Mexico), S.A.

Long-term foreign currency subordinated debt rating of Ba1 (hyb),
outlook changed to positive, from stable

Ratings Rationale

Upgrade Of Foreign Currency Deposit Ratings

The upgrade of the long-term foreign currency deposit ratings to
A3, from Baa1, of BBVA Bancomer, Banamex, Santander M'xico,
Banorte, HSBC Mexico and Scotiabank M'xico, follow the upgrade of
Mexico's sovereign country ceiling for foreign currency deposits
to A3, from Baa1. These banks' foreign currency deposit ratings
are constrained by Mexico's sovereign country ceiling for foreign
currency deposits.

Upgrade Of Government Related Issuer Ratings

In upgrading the issuer ratings of Bancomext, Banobras and SHF to
A3, from Baa1, Moody's noted that these ratings are based on the
Mexican government's irrevocable and enforceable guarantee on
these development banks' obligations with third parties as
established under their Organic Laws. The upgrades reflect the
alignment of these banks' ratings to those of the Mexican
government.

IPAB's foreign currency issuer rating was upgraded to the same
level as Mexico's A3 sovereign bond rating in line with the
deposit insurance institute's linkage with the Mexican sovereign.

Subordinated And Junior Subordinated Debt Ratings

Moody's placed Banorte's long-term foreign currency subordinated
and junior subordinated debt ratings on review for upgrade because
these ratings are anchored on the bank's adjusted baseline credit
assessment (Adjusted BCA). The Adjusted BCA reflects the bank's
intrinsic financial strength (BCA) and Moody's assessment of the
probability of parental support, as applicable. The review for
upgrade on the bank's subordinated and junior subordinated debt
ratings reflects the fact that Banorte's C- BFSR is on review for
upgrade and this potentially could derive in a higher BCA/Adjusted
BCA.

Similarly, the positive outlook on BBVA Bancomer, S.A. Texas
Agency's long-term local currency subordinated and junior
subordinated debt ratings, and on Santander Mexico's long-term
foreign currency subordinated debt rating, reflect the positive
outlook on BBVA Bancomer's and Santander M'xico's standalone
BFSRs/standalone BCAs. The standalone BCAs of BBVA Bancomer and
Santander M'xico are at the same level as their Adjusted BCAs
given that Moody's does not incorporate parental support
assumptions on these banks' ratings because the standalone ratings
of the respective parent banks are below those of their Mexican
subsidiaries.

The principal methodology used in rating BBVA Bancomer, S.A.,
Banco Nacional de Mexico, S.A., Banco Santander (Mexico), S.A.,
Banco Mercantil del Norte, S.A., HSBC Mexico, S.A., BBVA Bancomer,
S.A. Texas Agency, and Scotiabank Inverlat S.A. was Global Banks
published in May 2013. The principal methodology used in rating
Banco Nacional de Comercio Exterior, S.N.C., Banco Nacional de
Obras y Servicios Publicos, Sociedad Hipotecaria Federal, S.N.C.,
and Instituto para la Protección al Ahorro Bancario was
Government-Related Issuers: Methodology Update published in July
2010.

BBVA Bancomer is headquartered in Mexico City. As of 31 December
2013, the bank reported Mx$1,372 billion in assets (source:
Issuer's financial statements).

Banamex is headquartered in Mexico City. As of 31 December 2013,
the bank reported Mx$1,179 billion in assets (source: Comisión
Nacional Bancaria y de Valores).

Santander M'xico is headquartered in Mexico City. As of 31
December 2013, the bank reported Mx$821 billion in assets (source:
Issuer's financial statements).

Banorte is headquartered in Monterrey, Nuevo León. As of 31
December 2013, the bank reported Mx$769 billion in assets (source:
Comisión Nacional Bancaria y de Valores).

HSBC Mexico is headquartered in Mexico City. As of 31 December
2013, the bank reported Mx$511 billion in assets (source: Comisión
Nacional Bancaria y de Valores).

Scotiabank Mexico is headquartered in Mexico City. As of 31
December 2013, the bank reported Mx$242 billion in assets (source:
Comision Nacional Bancaria y de Valores).

Bancomext is headquartered in Mexico City. As of 31 December 2013,
the bank reported Mx$219 billion in assets (source: Comisión
Nacional Bancaria y de Valores).

Banobras is headquartered in Mexico City. As of 31 December 2013,
the bank reported Mx$488 billion in assets (source: Comisión
Nacional Bancaria y de Valores).

SHF is headquartered in Mexico City. As of 31 December 2013, the
bank reported Mx$99 billion in assets (source: Comisión Nacional
Bancaria y de Valores).

IPAB is headquartered in Mexico City. As of 30 September 2013, the
entity reported Mx$912 billion in liabilities (source: Issuer's
financial statements).


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


PUERTO RICO: Fitch Cuts GO and Related Debt Ratings to 'BB'
-----------------------------------------------------------
Fitch Ratings has downgraded the ratings for the following
Commonwealth of Puerto Rico debt to 'BB' from 'BBB-':

--Commonwealth general obligation (GO) bonds;

--Puerto Rico Public Building Authority government facilities
revenue bonds guaranteed by the commonwealth;

--Puerto Rico Aqueduct and Sewer Authority (PRASA) commonwealth
guaranty revenue bonds;

--Employees Retirement System of the Commonwealth of Puerto Rico
pension funding bonds.

The ratings have been removed from Rating Watch Negative; however,
the Rating Outlook, which indicates the direction the ratings are
likely to move over a one-to two-year period, is Negative.

The current action does not affect the ratings that Fitch assigns
to bonds issued by the Puerto Rico Sales Tax Financing Corporation
(COFINA).  Those bonds are secured by the commonwealth's sales and
use tax and insulated from the commonwealth's general credit
strain.  Their ratings are driven by economic and revenue
performance.

SECURITY

The GO bonds are a full faith and credit obligation of the
Commonwealth of Puerto Rico that benefit from a constitutional
first claim on commonwealth revenues.  The ratings on the public
building authority and PRASA bonds reflect the guaranty of the
commonwealth's full faith, credit, and taxing power.  The pension
funding bonds are payable from and secured by a pledge of
statutorily required employer contributions to the system; the
commonwealth is the largest contributor.

KEY RATINGS DRIVERS

REDUCED FINANCIAL FLEXIBILITY PROMPTS DOWNGRADE: Fitch placed the
GO and related ratings on Negative Watch in November 2013, citing
the challenge facing the commonwealth in maintaining financial
flexibility in light of the deterioration in capital markets
access.  Recent downgrades have triggered new liquidity
requirements and lowered expectations for the market available for
the commonwealth's debt going forward, though there have been no
significant negative developments regarding the commonwealth's
finances or economy since November.  In the context of other
credit challenges related to a weak economy and elevated liability
levels, Fitch believes that these additional hurdles preclude the
commonwealth maintaining an investment-grade credit profile.

FISCAL MANAGEMENT EFFECTIVE AND COMMITTED: The commonwealth's
management has responded quickly and decisively to challenges that
have arisen in recent years and the current administration has
made significant progress in addressing longstanding credit
issues.  Fitch believes the commitment of management to achieving
fiscal balance and honoring commitments to bondholders remains
strong, and the governor recently announced a plan to balance the
budget next year, one year earlier than previously expected.
ECONOMIC PERFORMANCE THE KEY FACTOR: The commonwealth's economy
has been in recession since 2006.  Initial signs of recovery in
2012 appear to have been more a reflection of economic stimulus
than underlying growth and subsequent economic performance has
been weak.  Although some recent information suggests nascent
improvement, results are mixed and it is too soon to tell whether
the economy will stabilize this year.  Fitch believes that the
ultimate success of efforts to put the commonwealth's finances on
a sustainable path will be dictated by the performance of the
economy.

DEBT AND RETIREE BENEFIT LIABILITIES HIGH: Puerto Rico's bonded
debt levels and unfunded pension liabilities are very high
relative to U.S. states, with a large amount of outstanding debt
issued for deficit financing purposes.  This has created spending
pressures and limited the commonwealth's ability to use additional
leveraging.  Pension funding will remain exceptionally low even
with the significant pension reform effort undertaken by the
current administration.

MARKET ACCESS IMPAIRED: The commonwealth's capital markets access
deteriorated steeply in 2013 despite the action taken to address
longstanding credit challenges.  Reliable external market access
in line with market norms is important to long-term stability.

GO PLEDGE STRONG: Puerto Rico's GO pledge is unusually strong,
providing a constitutional first claim on commonwealth revenues.
The commonwealth cannot file for bankruptcy.

RATING SENSITIVITIES

MARKET ACCESS: The current rating assumes that the commonwealth
will be able to execute a sizable transaction in the near term to
bolster liquidity.  An inability to access the market would be a
significant credit concern and cause for a downgrade.

EVIDENCE OF ECONOMIC STABILIZATION: Maintenance of the current
rating will require stabilization in economic performance and
emergence from the long recessionary period.

ACHIEVABILITY OF BUDGET TARGETS: Failure to show continued
progress toward structural balance would pressure the rating.

CREDIT PROFILE

Puerto Rico's current management has repeatedly shown its ability
and willingness to take quick action to address financial
challenges and external market concerns, much of which has
required legislative action.  However, underlying the need for
these measures is the very difficult economic, financial, and
market situation that management continues to confront.

Fitch downgraded Puerto Rico's GO debt rating to 'BBB-' with a
Negative Outlook in March 2013, reflecting economic and revenue
underperformance that significantly increased the size of the
operating imbalance for the then-current fiscal year and the gap
presented to the commonwealth as it developed a budget for fiscal
2014.

The commonwealth subsequently took numerous measures to bolster
finances and strengthen fundamental credit factors.  However, in
the same period, the capital markets environment for the
commonwealth's debt deteriorated considerably.  In addition,
economic indicators continued to show material weakness, and the
commonwealth reduced its forecast for economic performance.  In
November 2013, Fitch placed the commonwealth's GO and related
ratings on Rating Watch Negative, primarily reflecting the new
risk of constrained market access.

Since that time, the administration has taken additional steps to
support the credit, including enactment of teachers' pension
reform, various measures to improve GDB liquidity, and numerous
economic development initiatives.  Spending is reportedly under
budget, and the commonwealth recently announced a reduction in the
deficit forecast for the current and coming fiscal years.  On the
downside, the sales tax changes included in the current-year
budget have failed to produce the expected additional revenues.
The January 2014 revenue forecast revision, while unchanged in
aggregate, reflects an even larger reliance than previously
budgeted on corporate taxes, which are currently overperforming
estimates.

Last week's downgrades have triggered potential new liquidity
demands of about $1 billion; although Fitch expects that the
commonwealth will be able to meaningfully lower this amount
through negotiations with relevant counterparties, such demands
will still consume some of the commonwealth's limited current
market capacity in the near term.  Just as importantly, Fitch
believes that the non-investment-grade ratings will reduce the
market available for the commonwealth's debt going forward,
thereby diminishing financial flexibility as the administration
moves forward with its fiscal stabilization efforts.  The
commonwealth has announced plans to come to market with a sizable
transaction in the coming weeks that is expected to be sold
primarily to non-traditional investors.


PUERTO RICO: Investors Sell Bonds, PRICA Adds Uncertainty
---------------------------------------------------------
Pressure on US mutual funds to sell Puerto Rico (PR) bonds could
contribute to deteriorating capital markets for the commonwealth's
debt, Fitch says.  The credit downgrade and recent updates to the
Puerto Rico Investment Company Act of 2013 (PRICA) may introduce
additional selling pressures by mutual funds operating out of PR.
Funds already cut their exposure to PR bonds significantly in the
second half of 2013.

Fitch Tuesday downgraded PR general obligation and certain GO-
linked credits to 'BB' from 'BBB-', resolving a negative rating
watch from Nov 14, 2013.  COFINA sales tax bonds, the island's top
credit, remained at 'AA-/A+'.

US mutual funds have already sold much of their PR municipal bond
holdings since May 2013.  Fitch reviewed holdings of 92 Fitch
rated municipal closed-end funds across 6 large asset managers.
The group cut their PR exposure, on average, by more than 65%
through Dec 2013, with two managers exiting their holdings
entirely.

US mutual funds have historically invested in PR bonds because of
its triple tax-exempt status and good liquidity compared to
eligible non-PR issues.  For example, a single-state fund
investing in bonds exempt from Federal and New York State income
tax might have 95% New York State municipal bonds and 5% PR
municipal bonds.

Sales of PR municipal bonds were more pronounced for single-state
funds because they historically carried higher exposure. As of
Dec. 31, 2013, single-state funds had reduced exposure to 1.5%
from 4.7% on average, while national funds had declined to 0.8%
from 2.0%.  Among US funds that retained PR exposure, COFINA bonds
constituted on average 34% of PR holdings at the end of the year,
down from 66% at end of May.  This suggests that US funds chose to
sell COFINA bonds instead of realizing losses on the more
depressed GO and other GO-linked credits.

The selling pressure converged prices among the two issues in fall
of 2013.  This allowed fund managers operating out of PR to trade
in a number of their GO holdings for the higher quality COFINA
bonds, which better positioned them to weather the GO downgrades
that followed.

In addition to credit deterioration, the enactment of the new
PRICA, which governs the island's mutual funds industry with over
$11 billion in assets as of year end, could add pressure on PR
bond prices and liquidity in the future.  Mutual funds operating
out of PR currently invest almost exclusively in PR municipal
debt. If they adopt the new PRICA, they would be allowed to
diversify their portfolios outside of the commonwealth or into
local corporate exposures.  Selling municipal bonds could further
stress prices of the island's debt, as noted in See Fitch
commentary on the new PRICA published Jan 29, 2014.

PR bonds suffered strong price declines over the second half of
2013, but have stabilized recently. Prices of GO pension funding
bonds, 2036 maturities, originally declined 56% since May 2013,
but are up 14.1% from lows last week.  This compares to a 35%
price drop in COFINA sales tax bonds, which are up 9.2% from their
Dec 2013 lows, and a 10.9% drop in the broader Barclays U.S.
Municipal Long Bond index, which is up 5.1% from its lows in Sept
2013.


                            ***********


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.

Submissions about insolvency-related conferences are encouraged.
Send announcements to conferences@bankrupt.com


                            ***********


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

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

Copyright 2014.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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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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