TCRLA_Public/140403.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

           Thursday, April 3, 2014, Vol. 15, No. 66


                            Headlines



A N T I G U A  &  B A R B U D A

LIAT: David Evans Confirmed as Chief Executive Officer


A R G E N T I N A

YPF SOCIEDADA: Moody's Assigns Caa1 Foreign Currency Bond Rating


C A Y M A N  I S L A N D S

ABL CAPITAL: Creditors' Proofs of Debt Due April 30
DAR AL-ARKAN: Creditors' Proofs of Debt Due April 28
DRAWBRIDGE MINING: Creditors' Proofs of Debt Due April 28
EFG-HERMES: Creditors' Proofs of Debt Due April 28
EFG-HERMES MASTER: Creditors' Proofs of Debt Due April 28

EFG-HERMES MENA FI: Creditors' Proofs of Debt Due April 28
ELSWORTHY GENERAL: Creditors' Proofs of Debt Due April 25
FUKUOKA PREFERRED: Creditors' Proofs of Debt Due April 27
HB QUANTITATIVE: Creditors' Proofs of Debt Due April 25
MENA FI: Creditors' Proofs of Debt Due April 28


C O L O M B I A

AVIANCA HOLDINGS: S&P Retains 'B' Rating on $300MM Unsecured Notes
DEPARTMENT OF CALDAS: Fitch Upgrades Rating to 'BB (col)'


D O M I N I C A N   R E P U B L I C

DOMINICAN REP: Electricity Fee Stays Put; Subsidy Soars to RD$1.2B


M E X I C O

GRUPO GAYOSSO: S&P Withdraws 'B+' CCR Due to Insufficient Info.
GUADALUPE MUNICIPALITY: Fitch Assigns 'BB (mex)' Rating
MAXCOM TELECOMUNICACIONES: S&P Raises Corp. Credit Rating to 'B-'
MEXICALI MUNICIPALITY: Fitch Affirms 'BB + (mex)' Rating


P U E R T O   R I C O

PUERTO RICO INFRASTRUCTURE: S&P Affirms 'BB' Rating; Off Watch


V E N E Z U E L A

MERCANTIL: Fitch Cuts LT Currency IDRs to 'B'; Outlook Neg.
PROVINCIAL DE REASEGUROS: Fitch Assigns Initial 'B' IFS Rating


X X X X X X X X X

LATAM: IDB Sustainability Lending Hits US$2.8 Billion in 2013


                            - - - - -


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


LIAT: David Evans Confirmed as Chief Executive Officer
------------------------------------------------------
Trinidad Express reports that Leeward Islands Air Transport, known
as LIAT, on March 31, confirmed the appointment of British
national David Evans as its new chief executive officer, replacing
Captain Ian Brunton, who resigned last September.

LIAT said that its new chief executive, whose appointment becomes
effective from April 22, "is a results-driven executive with more
than 35 years of experience in senior roles within the aviation
industry," according to Trinidad Express.

As reported in the Troubled Company Reporter-Latin America on
March 28, 2014, Caribbean360.com said several sources
independently confirmed that Mr. Evans was approved following
"internal checks" but the leaders of the four shareholder
governments of LIAT are expected to ratify their choice.  The
report noted that Mr. Evans, from Knutsford in northwest
English county of Cheshire, has worked with British Airways and
two fledgling carriers in the Middle East, Nile Air Airlines in
Egypt and Kuwait's Wataniya Airways.

                            About LIAT

Headquartered in V. C. Bird International Airport in Saint George
Parish, Antigua, Leeward Islands Air Transport, known as LIAT,
operates high-frequency interisland scheduled services serving 22
destinations in the Caribbean.  The airline's main base is VC
Bird International Airport, Antigua and Barbuda, with bases at
Grantley Adams International Airport, Barbados and Piarco
International Airport, Trinidad and Tobago.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
Jan. 3, 2012, Antigua Caribarena related that former Antigua
Aviation Minister Robin Yearwood wants to see a merger between
Leeward Islands Air Transport (LIAT) and the Trinidad and Tobago-
owned Caribbean Airlines Limited, as he believes this is the only
way the Antigua-based regional carrier can survive.  Mr.
Yearwood's call came against the background of media reports out
of Port of Spain that suggested CAL's management may be eyeing
expansion into the OECS territories, according to Antigua
Caribarena.


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


YPF SOCIEDADA: Moody's Assigns Caa1 Foreign Currency Bond Rating
----------------------------------------------------------------
Moody's Investors Service has assigned Caa1 global foreign
currency bond rating to YPF Sociedada Anonima's (YPF) proposed
issuances of between USD 500 million and USD 1 billion in 10-year
Obligaciones Negociables Clase XXVIII to be issued in Argentina,
amortizing in years 8 (30%), 9 (30%) and 10 (40%). The rating
outlook is stable.

The proposed Obligaciones Negociables will be issued under YPF's
medium term issuance program (Programa Global de Emisión de
Títulos de Deuda de Mediano Plazo) registered on March 27, 2014
with Argentina's Comisión Nacional de Valores (CNV) for an amount
of maximum USD 5 billion.

Ratings Rationale

YPF's ratings are based on the company's strong financial track
record under majority ownership and control of the Argentine
government. Since the government of Argentina partially
nationalized YPF in April 2012, YPF has successfully eliminated
its exposure to change-of-control and/or nationalization clauses
in its debt agreements, repaid maturing debt obligations and
extended the company's debt maturity profile. The company has also
demonstrated modest access to the international capital markets
through an agriculture export financing structure and has signed a
number of investment partnership agreements with international
companies.

Moody's acknowledges that YPF's track record since the
nationalization is still fairly short and that the Argentina
government has a history of interference in the energy sector,
with several actions taken by the government indicating a highly
unpredictable operating environment. Nevertheless, Moody's
believes that one of the government's goals continues to be to
keep YPF's financial strength intact.

YPF's ratings reflect the application of Moody's joint default
rating methodology for government-related issuers (GRIs). The Caa1
rating combines YPF's underlying baseline credit assessment of b3
rating, the Caa1 local currency rating and stable outlook of the
Argentine government, moderate support and high dependence.

YPF's underlying baseline credit assessment reflects the company's
exposure to Argentine economic instability, including an
unpredictable government policy framework, and exposure to foreign
currency convertibility and transfer risk. The baseline credit
assessment is supported by the company's status as the largest
industrial corporation and energy company in Argentina. YPF
benefits from upstream/downstream integration and other business
diversification, and sizeable oil and gas reserves, including
sizable shale resources in the longer-term.

The stable outlook for YPF's ratings mainly reflects Moody's
stable outlook for Argentina's government bond rating and Moody's
view that YPF's and the government's ratings are closely linked
since YPF is a government-related issuer and also due to the
negative impact of the government's involvement in the energy
sector.

YPF's ratings could be downgraded if it is unable to maintain
sufficient liquidity and access to foreign currency in order to
meet its debt service obligations. The ratings could also be
downgraded if the government of Argentina's Caa1 rating were to be
downgraded.

There is limited upside for YPF's ratings over the near-term. Over
the longer term, an improvement in Argentina's Caa1 rating and
continued demonstration of a strong financial track record could
result in a ratings upgrade.

The principal methodology used in this rating was the Global
Integrated Oil & Gas Industry Methodology published in November
2009. Other methodologies used include the Government-Related
Issuers methodology published in July 2010.

YPF Sociedad Anónima, headquartered in Buenos Aires, is the
largest energy company in Argentina.


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


ABL CAPITAL: Creditors' Proofs of Debt Due April 30
---------------------------------------------------
The creditors of ABL Capital Fund Limited are required to file
their proofs of debt by April 30, 2014, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on March 14, 2014.

The company's liquidator is:

          Matthew Wright
          c/o Omar Grant
          Telephone: (345) 949 7576
          Facsimile: (345) 949 8295
          P.O. Box 897 Windward 1
          Regatta Office Park
          Grand Cayman KY1-1103
          Cayman Islands


DAR AL-ARKAN: Creditors' Proofs of Debt Due April 28
----------------------------------------------------
The creditors of Dar Al-Arkan International Sukuk Company are
required to file their proofs of debt by April 28, 2014, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on March 26, 2014.

The company's liquidator is:

          Natasha Morgan
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands


DRAWBRIDGE MINING: Creditors' Proofs of Debt Due April 28
---------------------------------------------------------
The creditors of Drawbridge Mining Holdings Ltd are required to
file their proofs of debt by April 28, 2014, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on March 25, 2014.

The company's liquidator is:

          Mervin Solas
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands


EFG-HERMES: Creditors' Proofs of Debt Due April 28
--------------------------------------------------
The creditors of EFG-Hermes Mena Fixed Income Fund, Ltd. are
required to file their proofs of debt by April 28, 2014, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on March 26, 2014.

The company's liquidator is:

          Mervin Solas
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands


EFG-HERMES MASTER: Creditors' Proofs of Debt Due April 28
---------------------------------------------------------
The creditors of EFG-Hermes Mena Fixed Income Master Fund Limited
are required to file their proofs of debt by April 28, 2014, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on March 26, 2014.

The company's liquidator is:

          Mervin Solas
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands


EFG-HERMES MENA FI: Creditors' Proofs of Debt Due April 28
----------------------------------------------------------
The creditors of EFG-Hermes Mena Fi Management Limited are
required to file their proofs of debt by April 28, 2014, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on March 26, 2014.

The company's liquidator is:

          Mervin Solas
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands


ELSWORTHY GENERAL: Creditors' Proofs of Debt Due April 25
---------------------------------------------------------
The creditors of Elsworthy General Partner Inc. are required to
file their proofs of debt by April 25, 2014, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on March 10, 2014.

The company's liquidator is:

          Matthew Wright
          c/o Omar Grant
          Telephone: (345) 949 7576
          Facsimile: (345) 949 8295
          P.O. Box 897 Windward 1
          Regatta Office Park
          Grand Cayman KY1-1103
          Cayman Islands


FUKUOKA PREFERRED: Creditors' Proofs of Debt Due April 27
---------------------------------------------------------
The creditors of Fukuoka Preferred Capital Cayman Limited are
required to file their proofs of debt by April 27, 2014, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on March 26, 2014.

The company's liquidator is:

          Mervin Solas
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands


HB QUANTITATIVE: Creditors' Proofs of Debt Due April 25
-------------------------------------------------------
The creditors of HB Quantitative Equity Strategies Limited are
required to file their proofs of debt by April 25, 2014, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on March 11, 2014.

The company's liquidator is:

          Matthew Wright
          c/o Omar Grant
          Telephone: (345) 949 7576
          Facsimile: (345) 949 8295
          P.O. Box 897 Windward 1
          Regatta Office Park
          Grand Cayman KY1-1103
          Cayman Islands


MENA FI: Creditors' Proofs of Debt Due April 28
-----------------------------------------------
The creditors of Mena FI Cayman Limited are required to file their
proofs of debt by April 28, 2014, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on March 26, 2014.

The company's liquidator is:

          Mervin Solas
          c/o Maples Liquidation Services (Cayman) Limited
          P.O. Box 1093, Boundary Hall
          Grand Cayman KY1-1102
          Cayman Islands


===============
C O L O M B I A
===============


AVIANCA HOLDINGS: S&P Retains 'B' Rating on $300MM Unsecured Notes
------------------------------------------------------------------
Standard & Poor's Ratings Services said that its 'B' issue-level
rating on Avianca Holdings S.A.'s $300 million senior unsecured
notes remains unchanged following the company's announcement to
increase these notes by up to $250 million.  S&P believes that the
company will use the proceeds of the add-on to fund its
significant fleet renewal and expansion program, which will result
in increased debt that S&P's current ratings and outlook already
incorporate.  Therefore, S&P still believes that the company will
keep improving its key financial ratios thanks to its strong
operating performance.  Particularly, S&P expects debt to EBITDA
slightly below 4.0x in 2014 and about 3.5x by the end of 2015, and
funds from operations to debt improving to about 21% in 2014 and
23% by the end of 2015.

Ratings List

Avianca Holdings S.A.
Corporate Credit Rating                B+/Positive/--
Senior Unsecured                       B


DEPARTMENT OF CALDAS: Fitch Upgrades Rating to 'BB (col)'
---------------------------------------------------------
Fitch upgraded to 'BB (col)' the rate of credit risk of ability to
pay (National Long-Term Rating) of the Department of Caldas and
revises outlook to positive.   Also upgraded to 'B (col)' the
Short Term Ratings.

The extraordinary review arises from the commencement of operation
of the agreement to restructure liabilities under the framework of
Law 550 of 1999 and the revival of the debt payments as agreed in
the business plan of the agreement.

Similarly, the rate of positive response to the Department's
perspective is mainly due to management being done by the
department to refine and validate the obligations agreed in the
agreement of restructuring of liabilities and the possibility of
dissaving FONPET resources (Decree 2191/2013) to cover unpaid
assessments (main liability of the Department), which could
significantly reduce the obligations of the agreement of
restructuring liabilities, also favor available to service the
debt and repayment capacity of the entity.  Similarly, we take
into consideration the good desempenio tax revenues and a policy
of effective oversight, which maintain that dynamic could favor
the generation of savings for the department.

Key Rating Factors

Restructuring liabilities mitigates liquidity risk
Caldas Department opted to restructure their financial and non-
financial liabilities, under the framework of Law 550/99, as a
mechanism to curb judicial liens against coursing.  This agreement
established a financial plan that includes total obligations of $
197,741,000, which $ 72,891 million related to financial
liabilities between capital and interest.  The repayment term of
the agreement was established until 2022.

Restoring the debt service payments
Payment of debt service was restored once the agreement came into
operation in mid restructuring of liabilities in the fourth
quarter of 2013.  In December 2013, the debt service was COP3.868
million, mostly for cover left unpaid interest on such effect. In
January 2014, the balance of the debt is $ 54,181,000.

Purification of the Debentures
Due to disability and purification of certain obligations under
the agreement of restructuring liabilities, the department has
reduced its liabilities by $ 3.736 million.  This situation has
limited the strict compliance with the payment schedule and
financial plan has forced him to make an exhaustive analysis of
liabilities in order to determine the real value of their duties
and based on this to make adjustments to the financial plan of
arrangement .

Close Fiscal surplus
of December 2013, according to what was reported in CHIP fiscal
closure of the Department of Caldas reflects resources free
recipients available for $ 32,148,000, these resources support the
commitments of the agreement restructuring of outstanding
liabilities to execute on behalf of the purification that Lead.

Current Revenues Resumed Trend Positive
control policies and collection have resumed importance in the
department and as a result the collection of own revenue
department for the end of 2013 shows an increase of 12.9% from the
previous anions.  This effect, coupled with the operating costs
remained lower growth, resulting in improved operational savings
set.  Fitch expects this trend to continue in the medium term and
achieve reverse the negative trend of the previous Anios.

Limited Affordability
According to the financial plan of arrangement restructuring of
liabilities, projected available reflects the limited capacity of
the department to incur new debt, at least for the next three
Anios.  In the future any additional debt contracted by the
department to be subordinated pursuant to the agreement of
restructuring liabilities

Rating Sensitivity
Increased rate of Caldas Department would be linked to the ability
to significantly reduce debug and obligations of the arrangement
of restructuring liabilities, coupled with a favorable financial
desempenio and sustainable debt levels.


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


DOMINICAN REP: Electricity Fee Stays Put; Subsidy Soars to RD$1.2B
------------------------------------------------------------------
Dominican Today reports that Dominican Republic Electricity
Superintendence said that the electricity fee for April will
remain unchanged, for which the State will allocate a RD$1.2
billion subsidy to maintain the price to users.

It said Superintendence resolution SIE-013-2014-TF disclosed the
Fuel Oil-6, one of the variables which determine the electricity
fee index, went from US$88.23 / Bbl to US$90.34 / Bbl, or 2.39%
higher, and Natural Gas rose from US$4.25 / MMBTU to
US$4.49/MMBTU, according to Dominican Today.

The resolution adds that coal stood at US$71.51 per ton, while the
monthly average exchange rate climbed from RD$43.15 to RD$43.25
per dollar, the report relates.


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


GRUPO GAYOSSO: S&P Withdraws 'B+' CCR Due to Insufficient Info.
---------------------------------------------------------------
Standard & Poor's Ratings Services withdrew its 'B+' corporate
credit rating on Mexico-based funeral services provider Grupo
Gayosso S.A. de C.V. at the company's request and due to lack of
adequate information to maintain S&P's surveillance.  At the same
time, S&P withdrew its 'B+' issue-level rating and '4' recovery
rating on the company's proposed seven-year $150 million unsecured
notes, which the company did not place in the market.


GUADALUPE MUNICIPALITY: Fitch Assigns 'BB (mex)' Rating
-------------------------------------------------------
Fitch Ratings has assigned a 'BB (mex)' to the municipality of
Guadalupe, Zacatecas.  The Outlook is Stable.

Key Rating Factors

The credit quality of Guadalupe is based on the following factors:
the projected level of long-term debt manageable; favorable
indicators of municipal investment, although backed by financing
from short and long term, and low level of social marginalization.
In contrast, among the limitations of the rating include the
history of selective default on a bank loan short term revolving
April 2013; weak administrative practices in previous years;
collection efficiency indicator below the median GMF (Group of
Municipalities rated by Fitch), reflected in a greater reliance on
federal resources; deficit balances and weak liquidity position,
reflected in the recurrent recruitment of short-term loans to
commercial banks and / or payment of shares with the State of
Zacatecas ['BBB-(mex)' pcp].

At end 2013, the company recorded a balance of public debt MXN66
million, corresponding MXN26 million credit with commercial banks,
which has fixed profile increased amortization, maturing in
October 2014 and whose pay rate is through an irrevocable trust
administration and payment source (affecting 63% of the shares),
taking as guarantor and joint debtor to the State of Zacatecas.
The remainder relates to a loan by the latter shares a preview of
maturing December 2014.

This year, it plans to hire a long-term financing for up MXN180
million which will be used to restructure and / or refinance
existing debt as well as the implementation of productive public
investment.  Under the new credit profile and assuming some
conditions of contract, debt indicators and sustainability would
rise to 0.40 times disposable income and debt service would
represent about 40% of the projected domestic savings.  Fitch
believes that these reasons are manageable for the company and
will monitor the restructuring process.

Regarding financial performance, total revenues presented
Guadalupe MXN517 million in 2013, of which 17% represent own
income (GMF, 27.5%) and other federal and state income than were
similar to previous years.  Within the farm added tax MXN22.5
million, and observe a sluggish compared to previous years.  The
current administration will seek to increase their own income
through improved revenue from property taxes and fees.  Regarding
federal revenues, they often resort to advance the town of shares
to meet its payment obligations by year end.

In 2013, a lower financial deficit by 2012, equivalent to 3% of
the total income of the municipality covered through greater
availability of cash and no bank debt was recorded.  In this
regard, short-term liabilities related to public works are kept in
controlled amounts, not debts with creditors under federal law.
To meet this condition, the entity proceeded to sign payment
agreements to settle debts, and Fitch expects a reduction of non-
bank liabilities for the coming years.

Liquidity at the end of the previous years is limited, averaging
7% of total revenues in 2013, for this, the company resorted to
short-term bank loans.  In one of them presented a brief delay in
payment in 2013, and was later cleared both the delay as the
remaining monthly payments.  Derived from this event that reflects
Fitch weak controls and administrative practices, the rating
assigned indicates that the ability to pay remains more vulnerable
to adverse economic change over time.  It is noteworthy that the
current administration does not intend to use short-term loans for
the coming years.

Domestic saving the entity has been variable but sufficient to
cover its long-term obligations, standing at 10.5% / OFR average
of the last 3 years, similar to the median GMF (10.4%).

Regarding the pension and retirement obligations, the town holds
regular contributions to IMSS and ISSSTEZAC state agency,
responsible for providing social workers of the municipality, so
that such obligations do not represent a direct contingency
municipal finances.  At the end of 2013, these contributions
amounted to MXN61 million (15.2% / OFR).

Moreover, water services, sewerage and drainage are provided by
the Inter-Board Water and Sewer Zacatecas (JIAPAZ), which operates
in four municipalities in the region.  Although the statutes
marked as intermunicipal agency, the State exerts high influence
in its operation, financially supported by the State Committee for
Water and Sewerage Zacatecas (CEAPA) and has direct interference
in the appointment of the flowchart board.  The municipality does
not transfer to the operation of the agency and it is now not a
direct contingency for the entity.

Rating Sensitivity

Greater control on the level of current spending through effective
administrative policies, a strengthening local revenue in order to
increase the budget level, and an improvement in the liquidity
position of incurring less in short-term financial obligations,
would support an improvement in the credit outlook.  Moreover,
among the elements that would push down the rating of the issuer
and / or outlook, there are: a greater amount of non-bank
liabilities, further increases in current spending levels in a
greater proportion than available revenues, which would cause a
deterioration in the generation of domestic savings.  Also, hiring
more debt both short-and long-term indicators deteriorate leverage
and sustainability


MAXCOM TELECOMUNICACIONES: S&P Raises Corp. Credit Rating to 'B-'
-----------------------------------------------------------------
Standard & Poor's Ratings Services raised its long-term corporate
credit rating on Maxcom to 'B-' from 'D'.  At the same time, S&P
assigned its 'B-' issue-level rating and recovery rating of '3' to
the company's $175.7 million senior secured stepped-up notes due
2020.  The outlook is stable.

"The rating upgrade follows Maxcom's completion of its debt
restructuring and capitalization.  The debt restructuring extends
the maturity date of its debt until 2020, and reduces the
company's coupon payments improving its financial flexibility.
Additionally, the company's MXN$2.2 billion capitalization will
allow it to follow through with its capital expenditure program,
which will lead to modest revenue growth in the coming years,"
said Standard & Poor's credit analyst Marcela Duenas.


MEXICALI MUNICIPALITY: Fitch Affirms 'BB + (mex)' Rating
--------------------------------------------------------
Fitch Ratings has affirmed the 'BB + (mex)' of the Municipality of
Mexicali, Baja California.  The Rating outlook is Stable.  Also,
the specific grade of 'A-(mex) vra' bank financing contracted by
the Municipality with Banobras in 2011 (Banobras 11) for an
initial amount of MXN814.5 million was ratified.

Rating Key Factors
The high financial deficit results from the high current
expenditure heading down specifically by personal service, has
marked a continued deterioration in the public finances of
Mexicali, a situation reflected in their current grade.
Additionally, other factors that constrain the rating are the
important indicator of damage to municipal domestic savings and
investment, high levels of leverage and sustainability of direct
debt and liabilities increased circulating weak liquidity
position, as well as any liabilities quotas.

Moreover, its strengths are the good terms and conditions of
direct long-term debt, the fair share of own revenues, the
economic importance of the Municipality in the national context
and good indicators of social well-being of its population.

It is noteworthy that the new administration is in the process of
implementing a plan of financial adjustment to boost revenues and
cut current spending.  Among the measures taken is the new Tax
Street lights and measures to improve the collection of property
taxes. The spending cuts are anticipated operating coupled with
greater control. Fitch will carefully evaluate the impact of new
administrative policies in the financial flexibility of the
company, so that in the course of the coming months will be a new
review.

Structurally the Municipality has an important dynamic for
personal services, which has resulted in a bulky operating
expense, which exceeds the uptake of disposable income (OFR). In
addition, local revenue has had little dynamism, with an average
annual growth rate of 0.9% during the analysis period. Therefore,
since 2009 the company has incurred financial and fiscal deficits
have pushed his generation of domestic savings (flow of free
resources) and liquidity position, reflected in the use of passive
short and long term.

As regards public debt, the company recorded a moderate level at
the end of 2013 showed a balance of debt MXN964.1 million,
equivalent to 0.36 times-x-OFR.  While the terms and conditions of
the debt are favorable, leverage and sustainability indicators
relating to the generation of domestic savings are high, due to
previous low financial flexibility of the municipality.  In
addition, the indirect debt contracted by the Municipal Council of
Private Mexicali (CUMM) reached MXN92.7 million at year end, and
is part of a 10-year loan for up MXN150 million, of which the
municipality acts as joint debtor.  "We plan to have the rest of
the funding for paving, a situation which will follow Fitch," they
sais.

Direct debt made up of two loans Banobras, the first (Banobras 11)
with balance MXN770.3 million at the end of the year and maturing
in April 2031, has an irrevocable trust administration and
payment, whose source of payment for 28.5% of the general fund of
the municipality shares, reserve fund and interest rate hedging.
Credit ratings provides good coverage observed during the analysis
period, the average was 3.63x debt service and reserves
considering 9.08x.  Stresses that according to the contract,
currently being in breach of an obligation to make related to the
minimum level of qualification, so that the City requested an
extension of 24 months to extend the period of healing, and
prevent the acceleration of credit.  Fitch will monitor this
situation, and if it reflected in the credit rating of the
municipality and / or bank credit.

The second loan was contracted in June 2013 for an amount of up
MXN401.5 million, of which to date have had MXN193.7 million. The
Municipality is in the process of defining the possible disposal
of the remainder of the loan.  Fitch will monitor the issue.

As a result of the limited liquidity during the last financial
year, the growth of non-bank liabilities for contingencies
resulted in Mexicali.  Stresses the debt with the Institute of
Security and Social Services Government and Municipality of the
State of Baja California (ISSSTECALI) totaling MXN631.7 million as
of 2013.  The new administration is in the process of negotiating
with the state to rectify this historical debt. Moreover, the low
flow of resources hampered the execution of works investment in
urban transport "Bus Rapid Transit" program agreed in the
agreement made with the National Infrastructure Fund (FONADIN),
also in the resolution process.

Rating Sensitivity

A further rise in as short and / or long term, maintaining the
deterioration in the generation of domestic savings, and increased
financial pressures contingencies presented by the Municipality,
are factors that could have a negative effect on the level rating.
Moreover, the implementation of a plan of financial adjustment
resulting in a strengthening liquidity position, financial
flexibility and resolution of contingent liabilities are factors
that can positively affect the credit quality of the municipality.

With regard to credit rating, this is closely linked to movements
in the credit quality of the Municipality, so any movement in the
latter could be reflected directly in the same sense in the
specific category of bank credit.  Additionally, the conditions of
the 24-month extension requested by the City related to the
failure to credit rating will be reviewed.


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


PUERTO RICO INFRASTRUCTURE: S&P Affirms 'BB' Rating; Off Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' rating on
Puerto Rico Infrastructure Financing Authority's (Ports Authority
project) series 2011B and 2011C revenue bonds and removed the
rating from CreditWatch, where it was placed with negative
implications on Feb. 6, 2014.

This action follows Standard & Poor's March 14, 2014, removal of
its ratings on Government Development Bank for Puerto Rico from
CreditWatch, where they were placed with negative implications on
Feb. 4, 2014.  The 2011B and C bonds are supported by a letter of
credit provided by Government Development Bank for Puerto Rico.

          STANDARD & POOR's 17g-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.

There is no Standard & Poor's 17g-7 Disclosure Report included in
this credit rating report because, in our view, there are no
representations, warranties and enforcement mechanisms available
to investors.


=================
V E N E Z U E L A
=================


MERCANTIL: Fitch Cuts LT Currency IDRs to 'B'; Outlook Neg.
-----------------------------------------------------------
Fitch Ratings has taken rating actions on the following six
private-sector Venezuelan banks following the downgrade of the
sovereign's Issuer Default Ratings (IDRs):

-- Banesco, Banco Universal, CA (BBU);
-- Banco Provincial, S.A., Banco Universal (Provincial);
-- Mercantil, C.A. Banco Universal (Mercantil);
-- Banco Occidental de Descuento (BOD);
-- Banco del Caribe, C.A. Banco Universal (Bancaribe);
-- Banco Exterior, C.A. Banco Universal (Exterior).

These rating actions follow the downgrade of Venezuela's IDRs to
'B' from 'B+'.  The Rating Outlooks on the sovereign's IDRs remain
Negative.  The banks' ratings are constrained by the sovereign due
to the negative effects of government control over the financial
sector and the broader economy (reflected in Venezuela's
'B'/Negative Outlook) and high exposure to the public sector.

Key Rating Drivers - IDRS, Vrs And National Ratings
These entities are the six largest private sector universal
commercial banks in Venezuela, with operations primarily in the
country. All of these banks' Viability Ratings (VRs), or
standalone intrinsic financial strengths, drive their IDRs and do
not take into account either institutional or state support. High
inflation, which reached 53% at year-end 2013 (metropolitan
Caracas), distorts financial ratios compared with other emerging
market universal/commercial banks with a VR in the 'b' category.

BBU
BBU's ratings balance its solid profitability (even when adjusting
for inflation) and asset quality indicators, as well as its
adequate liquidity and capitalization relative to domestic and
international peers.  BBU is the main subsidiary of Banesco
Holding, S.A.

PROVINCIAL
Provincial's ratings reflect its strong franchise and financial
profile compared with both domestic and international peers.  The
ratings also incorporate the bank's conservative risk management
and operational support from Spain's Banco Bilbao Vizcaya
Argentaria (BBVA).  Provincial's majority shareholder is BBVA,
which has a 55% stake in the bank.

MERCANTIL
Mercantil's ratings reflect its strong performance (even when
adjusting for inflation), manageable liquidity risk and resilient
credit risk profile.   The strength of its balance sheet,
management's experience in dealing with the inherently volatile
operating environment in Venezuela, and its ample market share and
strong franchise allow the bank to maintain a relatively stable
deposit base.  Mercantil is the largest subsidiary of Mercantil
Servicios Financieros.

BOD
BOD's ratings incorporate a history of volatile profitability,
capitalization, and asset quality indicators relative to both
domestic and international peers.  With the exception of
liquidity, the bank's financial metrics are weaker than other
large universal commercial banks in Venezuela.  The bank is
controlled by Cartera de Inversiones Venezuela (CIV), a
diversified holding company with interests in financial and
nonfinancial companies.

CARIBE
Bancaribe's ratings reflect its resilient performance, stable
asset quality indicators and adequate liquidity risk.  It also
incorporates a strengthening of capital ratios in 2013, following
pressures related to high nominal asset growth in recent years.
Scotiabank has a minority stake of 27% in Bancaribe.

EXTERIOR
Exterior's ratings reflect its solid asset quality and
profitability ratios (even when adjusting for inflation).
Liquidity and capitalization remain adequate, though weaker than
some of its larger domestic peers.  Grupo Bancario Ignacio Fierro
has an 84% stake in Exterior.

Rating Sensitivities - IDRS, VRS And National Ratings
Government intervention that pressures financial performance of
these banks could negatively affect the banks' IDRs, VRs and
National ratings. A sustained deterioration in profitability or
asset quality that pressures capitalization ratios could also be
negative for their ratings.

Additionally, a downgrade of the sovereign's IDRs would result in
a similar action on the IDRs and VRs of these banks, which are
currently capped at the sovereign.  There is no upside potential
to any of the banks' international ratings in the near term as the
sovereign currently has a Negative Rating Outlook.

Key Rating Drivers And Sensitivities - Support Rating And Support
Rating Floor

The banks' Support Rating (SR) of '5' and Support Rating Floor
(SRF) of 'NF' reflect Fitch's expectation of no support.  Despite
these banks' systemic importance, support cannot be relied upon
given Venezuela's speculative-grade rating and lack of a
consistent policy on bank support.  Government interference in the
banking system could also negatively influence shareholder support
if these banks were to require financial assistance.

Venezuela's propensity or ability to provide timely support to
these banks is not likely to change given the sovereign's low
speculative-grade ratings.  As such, the SR and SRF have no
upgrade potential, particularly as the sovereign has a Negative
Outlook.

Fitch has taken the following rating actions:

BBU
--Long-term foreign and local currency IDRs affirmed at 'B';
Outlook revised to Negative from Stable;
--Short-term foreign and local currency ratings affirmed at 'B';
--Viability affirmed at 'b';
--Support affirmed at 5;
--Support Floor affirmed at NF;
--Long-term national-scale rating affirmed at 'A+(ven)';
--Short-term national-scale rating affirmed at 'F1(ven)'.

Provincial
--Long-term foreign and local currency IDRs downgraded to 'B' from
'B+'; Outlook Negative;
--Short-term foreign and local currency ratings affirmed at 'B';
--Viability downgraded to 'b' from 'b+';
--Support affirmed at 5;
--Support Floor affirmed at NF;
--Long-term national-scale rating affirmed at 'AA+(ven)';
--Short-term national-scale rating affirmed at 'F1+(ven)'.

Mercantil
--Long-term foreign and local currency IDRs downgraded to 'B' from
'B+'; Outlook Negative;
--Short-term foreign and local currency ratings affirmed at 'B';
--Viability downgraded to 'b' from 'b+'
--Support affirmed at 5;
--Support Floor affirmed at NF;
--Long-term national-scale rating affirmed at 'AA+(ven)';
--Short-term national-scale rating affirmed at 'F1+(ven)'.

BOD
--Long-term foreign and local currency IDRs affirmed at 'B';
Outlook revised to Negative from Stable;
--Short-term foreign and local currency ratings affirmed at 'B';
--Viability affirmed at 'b';
--Support affirmed at 5;
--Support Floor affirmed at NF;
--Long-term national-scale rating affirmed at 'BBB(ven)';
--Short-term national-scale rating affirmed at 'F3(ven)'.

Caribe
--Long-term foreign and local currency IDRs affirmed at 'B';
Outlook revised to Negative from Stable;
--Short-term foreign and local currency ratings affirmed at 'B';
--Viability affirmed at 'b';
--Support affirmed at 5;
--Support Floor affirmed at NF;
--Long-term national-scale rating affirmed at 'A+(ven)';
--Short-term national-scale rating affirmed at 'F1(ven)'.

Exterior
--Long-term foreign and local currency IDRs downgraded to 'B' from
'B+'; Outlook Negative;
--Short-term foreign and local currency ratings affirmed at 'B';
--Viability downgraded to 'b' from 'b+'
--Support affirmed at 5;
--Support Floor affirmed at NF;
--Long-term national-scale rating affirmed at 'AA(ven)';
--Short-term national-scale rating affirmed at 'F1+(ven)'.


PROVINCIAL DE REASEGUROS: Fitch Assigns Initial 'B' IFS Rating
--------------------------------------------------------------
Fitch Ratings has assigned an initial 'B' Insurer Financial
Strength (IFS) rating to Provincial de Reaseguros, C.A. (Pro Re).
The Rating

Outlook is Negative.

Key Rating Drivers

The rating is based on Pro Re's sustained good technical
performance, with a combined ratio consistently below 100% and
better than that of peers.  Fitch also considers Pro Re's adequate
liquidity position, solid retrocession coverage and improved
capital quality.

The rating is limited by its small scale compared with global and
regional reinsurance companies, and the challenges posed by its
large business concentration in Venezuela, which may result in
significant volatility in the operating environment.  Pro Re is
not only exposed to underwriting risks from the operating
environment, but also investment risks from its significant
holdings of Venezuelan sovereign debt (foreign currency Issuer
Default Rating [FC IDR] 'B'/Outlook Negative).  In addition, the
potential for government intervention in the private sector
remains high.  The Negative Rating Outlook applied to Pro Re
mirrors the sovereign Rating Outlook.

Pro Re's profitability is driven by its good combined ratio (81%
as of June 2013), which is better than its relevant peers in
Venezuela (89%).  The combined ratio reflects good performance on
the net loss ratio (33% average in the last five years) offsetting
a high expense structure.

Fitch expects Pro Re's quality of capital to improve given its
good operating performance, high reinvestment of profits and lower
unrealized gains from revaluation of real estate assets.  The last
item is due to the sale of the largest fixed-asset in the
portfolio.

However, the agency believes that sustained high premium growth in
the company will make its leverage ratios remain similar to peer
averages, and above the median of higher rated reinsurance
companies around the world.

Pro Re exhibits liquid assets/net reserves and liquid
assets/liabilities ratios of 1.4x and 1.0x, respectively, which
are similar to the sector's averages as of December 2013.  Fitch
expects the company to maintain an adequate liquidity position,
due to the allocation of its investment portfolio in fixed-income
instruments, the absence of financial debt and the reasonable
behavior of its retrocessionaires.

The exposure to non-liquid investments and Venezuela's sovereign
debt is sizable compared to the company's capital base (around
100% as of December 2013); which may limit its flexibility in
times of stress.

Pro Re's retained risks are protected trough excess-loss treaties.
The company has long-standing relationships with internationally
renowned reinsurers that have good credit quality.  Pro Re's
capital exposures per risk and event are reasonable.

Rating Sensitivities

Additional negative movements in the sovereign rating may trigger
negative movements in Pro Re's rating due to its exposures in the
country, while a change in the sovereign Outlook to Stable, could
also lead to a Stable Outlook for the company.  Aside from
sovereign considerations, Pro-Re's rating could be downgraded
after a sustained deterioration in Pro Re's operating performance
with a combined ratio above 100%, a significant deterioration in
its operating leverage ratio exceeding 3.5x, and a reduction in
liquid asset/net reserves ratio to less than 1.0x.

Fitch does not anticipate an upgrade in the near term given the
aforementioned sovereign constrains.  Under a higher sovereign
rating scenario, rating triggers that could lead to an upgrade
include a significant improvement in operating leverage ratio
below 3.0x and a liquid asset/net reserves ratio sustained above
2.0x.


=================
X X X X X X X X X
=================


LATAM: IDB Sustainability Lending Hits US$2.8 Billion in 2013
-------------------------------------------------------------
The Inter-American Development Bank committed US$2.8 billion in
2013 for projects that address climate change, sustainable energy
and environmental sustainability, according to its annual
Sustainability Report, a detailed overview of its progress in
investing in and safeguarding sustainability in Latin America and
the Caribbean.

That number accounts for 20 percent of the Bank's overall lending
last year, and puts the IDB on target to meet its goal of 25
percent by 2015.  The Sustainability Report is issued on the side
of the IDB's Annual Meeting, which this year is taking place in
Costa do Sauipe, in Brazil.

The report provides data and context on the IDB's efforts to
invest in and safeguard sustainability by integrating
environmental and social considerations throughout its project
portfolio.  For example, of projects with high environmental and
social risks, 87 percent rated satisfactory in the implementation
of safeguard measures in 2013, exceeding the Bank's goal of 85
percent by 2015.

Additionally, the report examines the challenges of the rapid
urbanization of the region and the Bank's strategies to address
them, including a newly approved Infrastructure Strategy and
advances in its Emerging and Sustainable Cities Initiative.

A sustainable and efficient infrastructure-the buildings, roads
and services necessary for a modern society to operate smoothly-is
essential for improving the quality of life for people in the
region.

Latin America and the Caribbean region faces major challenges in
protecting its environment and tackling climate change. Demand for
electricity is expected to double by 2030 and annual damages from
natural disasters total US$3.6 billion.

The new Infrastructure Strategy balances environmental, social and
fiscal concerns, and new guidance on agriculture and natural
resources, urban development and housing, is consistent with
existing Bank strategies including the Climate Change and Clean
Energy Strategy.

In the past year, more than one million people have gained access
to low-carbon forms of public transportation.  Sixty percent of
the power generated by IDB projects was from low carbon sources.

The report also features the accomplishments of the region's
people and environment.  The case study of Mar del Plata,
Argentina, shows the value of environmentally and socially
inclusive infrastructure planning.  In Brazil, the people of Serra
do Mar offer an inspiring look at how community spirit and
participation have improved lives and the outcome of a project to
restore the natural environment.

The IDB is the main source of multilateral financing for the
region.


                            ***********


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
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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,
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202-241-8200.


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