TCRLA_Public/140314.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, March 14, 2014, Vol. 15, No. 52


                            Headlines




B R A Z I L

RB CAPITAL: Moody's Affirms (P)Ba1 Global Scale Rating on Certs.


C A Y M A N  I S L A N D S

ARVIN CAYMAN ISLANDS: Shareholders' Final Meeting Set for April 24
EMERAUDE HEDGE: Shareholders' Final Meeting Set for March 19
GOLDEN AMERICAS: Fitch Affirms, Withdraws 'BB' FC IDR
LUFT 476: Shareholder to Receive Wind-Up Report on April 4
OLYMPIA GLOBAL: Shareholders' Final Meeting Set for April 3

OLYMPIA GLOBAL MASTER: Shareholders' Final Meeting Set for April 3
OLYMPIA LONG: Shareholders' Final Meeting Set for April 3
OLYMPIA LONG MASTER: Shareholders' Final Meeting Set for April 3
OLYMPIA MARKET: Shareholders' Final Meeting Set for April 3
OLYMPIA MARKET MASTER: Shareholders' Final Meeting Set for April 3


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Low Tax Pressure, Energy Sector Woes Worry IMF
XSTRATA PLC: Arbitration Court Deals Nickel Mine a Major Setback


E L  S A L V A D O R

AES EL SALVADOR TRUST: Fitch Affirms 'BB' IDR; Outlook Negative


J A M A I C A

JAMAICA: Public Debt Jumps to Record Level
NATIONAL COMMERCIAL BANK: Admits to Increasing Fees


M E X I C O

JAVER S.A.P.I.: Fitch Affirms 'B' Issuer Default Rating


                            - - - - -


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


RB CAPITAL: Moody's Affirms (P)Ba1 Global Scale 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 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 Securitiza‡ao
S.A.

97th, 98th and 99th Series for a total amount of BRL 403,200,000
in CRIs; ratings affirmed at (P)Aa2.br / (P)Ba1

Ratings Rationale

The rating affirmation follows the completion of the bookbuilding
process. The transaction has not closed yet. The series issuances
will be issued as follows:

97th Series -- R$ 209,700,000 with a coupon of IPCA + 6.34%,
maturing on March 7, 2024

98th Series -- R$ 70,800,000 with a coupon of IPCA + 6.71%,
maturing on March 6, 2026

99th Series -- R$ 122,700,000 with a coupon of IPCA + 7.04%,
maturing on March 7, 2029

The transaction rating is based on the rating of BR Malls
Participacoes S.A. (BR Malls).

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 (fian‡a) provided by BR Malls
Participacoes S.A. ("BR Malls") on the Real Estate Credits, (ii) a
pledge of the Real Estate Assets (aliena‡ao 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 3Q13 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 97.6%
and its solid adjusted EBITDA margins at 80.3% as of 3Q13.

The principal methodology used in this rating was "Rating
Transactions Based on the Credit Substitution Approach: Letter of
Credit backed, Insured and Guaranteed Debts" published in March
2013.

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
==========================


ARVIN CAYMAN ISLANDS: Shareholders' Final Meeting Set for April 24
------------------------------------------------------------------
The shareholders of Arvin Cayman Islands, Ltd. will hold their
final meeting on April 24, 2014, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Paget-Brown Trust Company Ltd.
          c/o Ica Eden
          Telephone: (345)-949-5122
          Facsimile: (345)-949-7920
          P.O. Box 1111 Grand Cayman KY1-1102
          Cayman Islands


EMERAUDE HEDGE: Shareholders' Final Meeting Set for March 19
------------------------------------------------------------
The shareholders of Emeraude Hedge Fund will hold their final
meeting on March 19, 2014, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Ricardo Carneiro Monteiro
          Telephone: +1 (345) 949 8599
          Facsimile: +1 (345) 949 4451
          Harbour Place, 4th Floor
          103 South Church Street
          P.O. Box 10240 Grand Cayman KY1-1002
          Cayman Islands


GOLDEN AMERICAS: Fitch Affirms, Withdraws 'BB' FC IDR
-----------------------------------------------------
Fitch Ratings has affirmed and withdrawn the following ratings of
Termocandelaria Power Ltd. (Termocandelaria) and Golden Americas
Ltd. (Golden Americas):

Termocandelaria:

   -- Foreign Currency (FC) and Local Currency (LC) Issuer Default
      Rating (IDR) at 'BB+'; Outlook Stable;

   -- Senior Secured Notes at 'BB+'.

Golden Americas:

   -- FC IDR at 'BB'; Outlook Stable
   -- Senior Secured Notes at 'BB'.

Key Ratings Drivers

Affirm and Withdraw: Fitch has simultaneously affirmed and
withdrawn its ratings as the issuers prepaid their long-term debt
and do not have long-term debt outstanding, and due to a lack of
market interest.

The affirmation for Termocandelaria's ratings reflects the
company's strong credit metrics characterized by low leverage
levels, stable and predictable cash flow generation, a somewhat
diversified asset base and relatively strong market share position
in Colombia's thermoelectric generation capacity.  Also factored
into the ratings are the company's relatively modest liquidity
levels and moderate exposure to credit availability to finance
potential working capital needs.  Termocandelaria's ratings
reflect the combined financial and operational profile of its two
subsidiaries - Termocandela and TEBSA, in which the company holds
a 100% and 57% participation, respectively.


LUFT 476: Shareholder to Receive Wind-Up Report on April 4
----------------------------------------------------------
The shareholder of Luft 476 Limited will receive on April 4, 2014,
at 8:30 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

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


OLYMPIA GLOBAL: Shareholders' Final Meeting Set for April 3
-----------------------------------------------------------
The shareholders of Olympia Global Macro Fund 1 Limited will hold
their final meeting on April 3, 2014, at 11:45 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Newington, Ltd.
          c/o J. Andrew Murray
          Telephone: 345-949-9710
          P.O. Box 2075 Grand Cayman KY1-1105
          Cayman Islands


OLYMPIA GLOBAL MASTER: Shareholders' Final Meeting Set for April 3
------------------------------------------------------------------
The shareholders of Olympia Global Macro Master Fund Limited will
hold their final meeting on April 3, 2014, at 11:00 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Newington, Ltd.
          c/o J. Andrew Murray
          Telephone: 345-949-9710
          P.O. Box 2075 Grand Cayman KY1-1105
          Cayman Islands


OLYMPIA LONG: Shareholders' Final Meeting Set for April 3
---------------------------------------------------------
The shareholders of Olympia Long Short Equity Fund 1 Limited will
hold their final meeting on April 3, 2014, at 1:15 p.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Newington, Ltd.
          c/o J. Andrew Murray
          Telephone: 345-949-9710
          P.O. Box 2075 Grand Cayman KY1-1105
          Cayman Islands


OLYMPIA LONG MASTER: Shareholders' Final Meeting Set for April 3
----------------------------------------------------------------
The shareholders of Olympia Long Short Equity Master Fund Limited
will hold their final meeting on April 3, 2014, at 12:30 p.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Newington, Ltd.
          c/o J. Andrew Murray
          Telephone: 345-949-9710
          P.O. Box 2075 Grand Cayman KY1-1105
          Cayman Islands


OLYMPIA MARKET: Shareholders' Final Meeting Set for April 3
-----------------------------------------------------------
The shareholders of Olympia Market Neutral Fund 1 Limited will
hold their final meeting on April 3, 2014, at 2:45 p.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Newington, Ltd.
          c/o J. Andrew Murray
          Telephone: 345-949-9710
          P.O. Box 2075 Grand Cayman KY1-1105
          Cayman Islands


OLYMPIA MARKET MASTER: Shareholders' Final Meeting Set for April 3
------------------------------------------------------------------
The shareholders of Olympia Market Neutral Master Fund Limited
will hold their final meeting on April 3, 2014, at 2:00 p.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Newington, Ltd.
          c/o J. Andrew Murray
          Telephone: 345-949-9710
          P.O. Box 2075 Grand Cayman KY1-1105
          Cayman Islands



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D O M I N I C A N   R E P U B L I C
===================================


DOMINICAN REPUBLIC: Low Tax Pressure, Energy Sector Woes Worry IMF
------------------------------------------------------------------
The Dominican Today reports that the International Monetary Fund
has expressed concern with the electricity sector's spiraling
deficit and the low tax pressure in Dominican Republic's revenue
system.

A source quoted by listin.com.do said the IMF mission visiting the
country as part of the annual review noted that Dominican
Republic's tax pressure is low because of the numerous laws that
include tax breaks, which in their view should be forged into a
single legislation, according to The Dominican Today.

The report notes that in the process to evaluate the economy,
whose results would be disclosed in a statement issued when they
depart, the Fund's mission will address the public debt's
sustainability, the quasi fiscal deficit and the exchange rate.

It was learned that the Dominican economy's performance has been
called positive and the government's economic policies "head in
the direction to address concerns thus far," the report relates.


XSTRATA PLC: Arbitration Court Deals Nickel Mine a Major Setback
----------------------------------------------------------------
Dominican Today reports that the Superior Arbitration Court (TSA)
ordered all government agencies to immediate halt any effort or
authorization involving mining at Loma Miranda.

It also set the hearing on an injunction sought by the plaintiffs
against the Senate, the Environment Ministry and the Mining Agency
for April 2, to halt the exploitation of Loma Miranda, and
subpoenaed Xstrata Nickel Falcondo to appear in court, according
to Dominican Today.

The report notes that the Justice and Transparency Foundation
(FJT), which filed the request for the injunction, called the
Court ruling respectful of the constitutional right to a healthy
environment.

The report notes that FJT lawyers Jose Marte Piantini, Ricardo de
la Cruz and Consuelo Despradel said it's the third time that a
court upholds the ban on exploiting Loma Miranda, and that a
company's profits cannot be placed above Dominican Republic's
interests.

"We have no doubt that the Court will assume this national desire
to protect Loma Miranda from the clutches of international
capitalism as its own," the report quoted FJT President Trajano
Potentini, who noted the support by opposition PRD party leader
Luis Abinader, the Dominican Party for Change and the Socialist
Green Party (PASOVE), as saying.

As reported in the Troubled Company Reporter-Latin America on
Jan. 22, 2014, Dominican Today said that Chief Executive Officer
of Xstrata PLC's Falcondo reiterated that the company's presence
in the country depends on a long term mining, with cheap
electricity available, to produce and compete in world markets.
Mr. Soares said they pin their hopes of extracting nickel at the
controversial site of Loma Miranda, between La Vega and Bonao
(central), for which they expect to get the mining permit,
according to Dominican Today.  But environmental and civil society
groups could keep them from carrying out the project, after the
Chamber of Deputies agreed with the protesters and passed a bill
which declares Loma Miranda a protected area, arguing that much of
the Cibao region's (north) water depends on it, the report
related.

Xstrata PLC is the operator of Falconbridge Dominicana, C. por A.
("Falcondo") with an 85.26% ownership.  Falcondo is a ferronickel
surface mining operation located in the Dominican Republic with
operations dating since 1971.

Headquartered in Zug, Switzerland, Xstrata PLC is a major producer
of coal, copper, nickel, primary vanadium and zinc and the largest
producer of ferrochrome.



====================
E L  S A L V A D O R
====================


AES EL SALVADOR TRUST: Fitch Affirms 'BB' IDR; Outlook Negative
---------------------------------------------------------------
Fitch Ratings has affirmed AES El Salvador Trust II's foreign and
local currency Issuer Default Ratings (IDRs) at 'BB'.  The rating
action applies to the company's USD310 million senior unsecured
notes due 2023.  The Rating Outlook is Negative.  Concurrently,
Fitch affirmed Compania de Alumbrado Electrico de San Salvador, SA
de C.V. y Subsidiarias (CAESS) and Empresa Electrica de Oriente,
SA de C.V. y Subsidiarias (EEO) at 'A+(slv)'.

AES El Salvador Trust II (AES El Salvador) is a special-purpose
vehicle (SPV) located in Panama that was created to issue
USD310 million of notes on behalf of AES El Salvador Group.  AES
El Salvador's ratings are based on the combined credit strength of
the operating companies that guarantee its debt and reflect the
group's strong market position, low business risk profile, and its
predictable cash flow generation.  The ratings also reflect the
exposure to high regulatory risk and to sovereign risk through
subsidies.  A significant portion of AES El Salvador's cash flow
generation comes from government subsidies, which exposes the
company to El Salvador's creditworthiness and payment ability.
The Negative Outlook reflects the Negative Outlook on El
Salvador's 'BB-' sovereign rating.

Key Rating Drivers

Large Market Position And Low Business Risk

AES El Salvador's low business risk results from its stable
customer base and predictable cash flows.  Although distribution
service territories are not exclusive and distributors are free to
compete for customers, the risk of new competition is low given
that distribution companies possess significant economies of scale
that make it inefficient for more than one company to operate in
any particular geographic area.  The ratings factor in the strong
market position of AES El Salvador as the largest electric
distribution group in the country.  The group serves approximately
1.3 million customers and covers 80% of El Salvador's electricity
distribution area.  The group supplied 63% of the total energy
demand in the country during 2013 (66% in 2012).  The company's
operations are considered efficient compared with other
distribution companies in the region.  In 2013, non-technical
losses reduced to 1.73% from 2.04% in 2012.  This bodes well for
the company's credit quality as it limits its exposure to costs
that are not completely recognized through the tariffs.

High Exposure To Government Intervention

The ratings incorporate AES El Salvador's high exposure to
regulatory risk and receipt of government subsidies.  The
Salvadorian government currently subsidizes residential users with
a monthly consumption of 99 kilowatt hours (kWh) or less.
Additionally, the government implemented an extraordinary subsidy
for users with consumption below 200 kWh.  The permanence or
modification of this extraordinary subsidy is reviewed quarterly
by the government.  The state owned utility company, Comision
Ejecutiva Hidroelectrica del Rio Lempa - (CEL), partly finances
these subsidies.  In 2013, subsidies received by AES El Salvador
totaled USD 136.9 million, representing approximately 16% of its
consolidated revenues (USD135.2 million and 17%, respectively in
2012).  Approximately 87% of the company's residential customers
received subsidies in the last year.  Although the government has
been paying subsidies in a timely manner, payment delays or a
significant extension of the collection period may impact AES El
Salvador's financial profile and pressure the ratings.

Strengthening Credit Fundamentals Supported By Tariff Structure

The company's credit profile is supported by its stable and
predictable cash flow generation and strengthening credit metrics
as result of higher EBITDA levels as outcome of the tariff reset
for the 2013-2017 period.  The tariff reset was determined as per
the new methodology that considers real costs of the companies
based on El Salvador distribution grid instead of an optimized
company model as it was considered in the past methodology.  Fitch
considers that although the new methodology is positive for the
issuer, it continues to be exposed to government intervention.  In
2013, the issuer recorded consolidated EBITDA and EBITDA margin of
USD86 million and 10%, respectively (vs. USD 69.7 million and 8.2%
in 2012).  Leverage, measure as total debt / EBITDA, reduced to
3.5x in December 2013 from 4.5x in Dec. 2012.  Fitch expects the
company will be able to maintain a similar leverage ratio in the
next years, absent of new debt or changes in the operating
environment.

Adequate Liquidity

AES El Salvador's liquidity is supported by its cash on hand,
which as of year-end 2013 was approximately USD32.7 million, and
USD32.7 million short-term bank credit facilities to buy
electricity from generators.  Liquidity could be affected in case
of higher energy prices for final users that could lead to higher
ageing account receivables.  Should distribution companies be
forced to issue additional debt to fund their working capital
requirements, while they continue distributing dividends, their
credit quality could deteriorate.

Ratings Sensitivity

   -- AES El Salvador's ratings could be negatively affected by
      any combination of the following factors: further sovereign
      downgrades; weakening of credit metrics; deterioration of
      the operating environment resulting from shortages of
      electricity supply or further political or regulatory
      intervention that negatively affects the company's financial
      performance;

   -- AES El Salvador's ratings could be positively affected by a
      sustainable leverage reduction; regulatory stability; and
      improving macroeconomic conditions in El Salvador.


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


JAMAICA: Public Debt Jumps to Record Level
------------------------------------------
RJR News reports that the government said the public debt jumped
to a record 1 trillion 938 billion dollars[sic] at the end of last
year.

The increase was due to higher borrowings by the government as
well as the impact of the sliding dollar on the external portion
of the debt, according to RJR News.

The report notes that the currency depreciation caused the
country's external debt to rise almost eight percent.


NATIONAL COMMERCIAL BANK: Admits to Increasing Fees
---------------------------------------------------
RJR News reports that National Commercial Bank has admitted for
the first time that it increased fees in the aftermath of losses
it incurred from the government's debt exchanges in 2010 and 2012.

Patrick Hylton, Managing Director of NCB, answered questions on
the matter when he appeared before the Economic and Production
Committee of Parliament, according to RJR News.

Mr. Hylton, the report notes, added however that the fee increase
was not significant in relation to the losses the bank suffered
due to the Jamaica Debt Exchange or the National Debt Exchange.

               About National Commercial Bank

Headquartered in Kingston, Jamaica, National Commercial Bank
Jamaica Limited -- http://www.jncb.com/-- together with its
subsidiaries, provides various banking and financial products and
services primarily in Jamaica.

                      *     *     *

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.


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M E X I C O
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JAVER S.A.P.I.: Fitch Affirms 'B' Issuer Default Rating
-------------------------------------------------------
Fitch Ratings has affirmed Servicios Corporativos Javer, S.A.P.I.
de C.V.'s (Javer) ratings as follows:

   -- Foreign currency Issuer Default Rating (IDR) at 'B';
   -- Local currency IDR at 'B';
   -- USD320.25 million senior unsecured notes due 2021 at
      'B+/RR3';
   -- USD6.33 million senior unsecured notes due 2014 at 'B+/RR3'.

The Rating Outlook is Stable.

Javer's 'B' ratings reflect a consistent business strategy that is
oriented to the affiliated low-income segment, with Infonavit as
its main mortgage provider.  This strategy has allowed Javer to
collect its receivables and manage its working capital needs.  The
company funding strategy of relying primarily upon long-term
public debt with almost no secured debt is also unique for the
industry and has led to an 'RR3' rating of its public bonds.
Further considered in the company's ratings are its solid cash
position, focus on free cash flow (FCF) generation and manageable
debt amortization schedule.  In Fitch's view, Javer's ratings are
constrained by its limited geographic diversification, high
financial gross leverage levels, low interest coverage levels and
declining margins in the last two years.

Key Rating Drivers:

Higher Leverage and Absolute Debt Levels:

The ratings are limited by the growing trend in the company's
gross leverage during past years driven by increasing levels of
debt.  According to Fitch's calculations Javer's gross leverage
was 5.4x as of Dec. 31, 2013, which compares negatively with 4.9x
in 2012 and 4.3x in 2011, and with expectations previously
incorporated in the ratings.  Javer's EBITDA for 2013 was MXN795
million, a 9.3% increase when compared with MXN728 million
registered in 2012.  Total debt increased to MXN4,272million at
the end of 2013 from MXN3,590 at the end of 2012, due to the
issuance of USD50 million in senior notes during 1Q'13 which were
intended to be used for acquisitions that did not occur during
2013.  The rating affirmation incorporates Javer's capacity to
maintain focus on FCF generation, and improving its cash position
coupled with its manageable debt maturity profile.  Fitch
estimates that Javer's gross leverage will be around 5.0x and net
leverage will be around 3.8x during 2014, and improve to 4.5x in
2015; deviations from these expectations could result in negative
rating actions.

Focus on FCF Expected to Continue in 2014:

Positively factored into Javer's ratings is the company's ability
to adjust its business strategy during 2013 to face the industry's
challenging operating environment.  During 2013, the company
increased middle-income and residential housing production,
reaching a total of 8,816 units sold in this segment at year end
(50.7% of its total units during 2013); this represents an
increase of 26% over the 6,998 middle-income and residential units
sold in 2012.  This strategy was put in place to overcome the lack
of subsidies from the federal government in the first months of
2013, which in conjunction with the 145 unit decrease in total
units sold, allowed the company to have slightly higher margins
and maintain manageable working capital needs to generate a higher
positive FCF during 2013 of MXN315 million, compared to the
positive FCF of MXN98 million in 2012.  FCF calculation considers
cash flow from operations less interests paid less capital
expenditures.  Fitch expects the company's FCF to be negative in
2014, but return to positive in 2015 and 2016.

Limited Geographic Diversification:

Javer's limited geographic diversification constrains its ratings;
around 83% in 2013 and 85% in 2012 of Javer's total revenue was
generated in the states of Nuevo Leon and Jalisco.  This
concentration increases the company's dependence upon specific
local and municipal governments to secure land and permits, and
translates into exposure to individual market dynamics.  The
company accounts for 16.3% of mortgages granted by Infonavit in
Nuevo Leon and 17.7% in Jalisco.  This is somewhat mitigated
through the company's long-term strategy to overweight the
affiliated affordable entry-level segment with Infonavit as its
main mortgage provider, because this segment usually presents more
demand and government support programs in the form of subsidies.
This strategy has allowed Javer to have a shorter working capital
cycle.

Low Refinance Risk:

Javer has a manageable debt payment schedule with no material debt
maturities during the next few years.  Javer's cash position as of
Dec. 31, 2013 was MXN1,309 million.  This was an increase from
MXN417 as of Dec. 31, 2012, due to the reopening of the notes
during the 1Q'13.  The company issued USD50 million to repay
ViveICA's short-term debt, but the agreement to merge ICA's
housing business with Javer was terminated, due to both parties'
lack of agreement on conditions for closing the transaction.  The
company does not factor in any of its account receivables embedded
in its cash position.  Javer's debt of MXN4.3 billion consists
primarily of its USD320.25 million (MXN4.1 billion) senior
unsecured notes due in 2021.  Javer's remaining debt balance
consists of the USD6.33 million notes due in 2014 and capital
leases.  Debt payments due in 2014 and 2015 are approximately
MXN111.7 million and MXN16.3 million, respectively.

Declining Margins and Low Interest Coverage:

Javer's EBITDA margins have declined during the last two years
reaching 14.7% and 14.3% during 2013 and 2012, respectively,
compared to the average of 21.2% during 2008-2011.  This margin
compression reflects deterioration in the business environment
during 2012 and 2013 in terms of limited government-subsidy
availability in the company's area of operations, as well as its
strategic decision to increase the size of its labor force because
of the expected merger with ViveICA; as the combination did not
take place, a human resources downsizing translated to termination
costs that increased Javer's SG&A in 2013.  This situation is not
expected to continue in 2014; the ratings incorporate the
expectation that the company's EBITDA margin will remain at around
14.5% during 2014 as a result of Javer's strategy of increased
production of affordable entry-level housing, which traditionally
carries lower margins.  Javer's interest coverage levels are low
with ratios around 1.5x.  According to Fitch's calculations, the
funds from operations (FFO) interest coverage ratio was 1.4x at
the end of 2013 and 1.1x at the end of 2012.  EBITDA/gross
interest expense was 1.5x at the end of 2013 and 1.4x at the end
of 2012.

Stable Business Position, Adequate Land Reserves:

Javer was the second-largest supplier of Infonavit homes in the
country at year end 2013.  The company is also the largest
supplier of Infonavit loans in the states of Nuevo Leon and
Jalisco with a 16.3% and 17.7% market share, respectively.
Javer's land reserves were equivalent to 94,061 homes as of
Dec. 31, 2013, which represents about five years of production.
Around 45% of Javer's land reserves are inside the urban
perimeters established by the new Urban Development and Housing
Policy and the rest are land reserves with infrastructure and/or
housing already on them already authorized to operate as housing
developments.  The split of these reserves between owned land
reserves and land reserves through land trust agreements is
approximately 63%/37%.  Javer's strategy is to invest
approximately MXN500 million per year in land reserves
replacement.

Rating Sensitivities:

A negative rating action could be triggered by further
deterioration in the company's credit protection measures and cash
position due to weak operational results and/or capex levels
substantially above expectations, deterioration in FCF generation
driven by increasing working capital needs, and continued decline
in EBITDA margins.  Total debt-to-EBITDA consistently above 5.0x
in 2014 and 4.5x in 2015 will also pressure Javer ratings.

Conversely, a positive rating action could be triggered by a
combination of the following factors: material improvement in FCF
generation resulting in consistently positive FCF levels, stable
operational performance, and significant strengthening in the
company's leverage and interest coverage metrics.


                            ***********


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
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000 or Nina Novak at
202-241-8200.


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