TCRLA_Public/140502.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, May 2, 2014, Vol. 15, No. 86


                            Headlines



B R A Z I L

BROOKFIELD INCORPORACOES: Moody's Rates BRL300MM Debentures 'B1'
DIAGNOSTICOS DA AMERICA: S&P Affirms 'BB' CCR; Outlook Stable


C A Y M A N  I S L A N D S

CENTRON GLOBAL: Creditors' Proofs of Debt Due May 22
CFS LIQUIDATORS: Creditors' Proofs of Debt Due May 13
CHATEAU ASSET: Court Enters Wind-Up Order
EUCALYPTUS MACRO: Creditors' Proofs of Debt Due May 22
LION/SILK: Creditors' Proofs of Debt Due May 15

LION/SILK: Shareholder to Hear Wind-Up Report on May 16
LION/SILK HOLDINGS: Creditors' Proofs of Debt Due May 15
LION/SILK HOLDINGS: Shareholder to Hear Wind-Up Report on May 16
TSF KASUMIGASEKI: Creditors' Proofs of Debt Due May 22
VEGA CAPITAL: Creditors' Proofs of Debt Due May 13

VITALITY RE II: Creditors' Proofs of Debt Due May 13
WILMINGTON TRUST: Creditors' Proofs of Debt Due May 13


C O L O M B I A

COLOMBIA: Warns of Emergency Decree for Pipeline Standoff


D O M I N I C A N   R E P U B L I C

DOMINICAN REP: Commonwealth Countries Mull Mining Industry Impact


J A M A I C A

JAMAICA: Innovators Get Pre-qualification for EXIM Bank Loan


M E X I C O

TABASCO: Moody's Changes Ba1 Issuer Rating Outlook to Positive


P A N A M A

MULTIBANK INC: S&P Revises Outlook to Pos. & Affirms 'BB+' LT ICR


U R U G U A Y

BANCO DE LA NACION: Moody's Withdraws Caa1 Deposit Rating


                            - - - - -


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B R A Z I L
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BROOKFIELD INCORPORACOES: Moody's Rates BRL300MM Debentures 'B1'
----------------------------------------------------------------
Moody's America Latina assigned ratings of B1 on the global scale
and Baa2.br on the Brazilian national scale to the BRL300 million
senior unsecured debentures issued by Brookfield Incorporacoes
S.A. (Brookfield) in March 2011. The ratings are under review for
downgrade.

Ratings Assigned:

BRL150 million senior unsecured debentures due March 2015 (1st
series; 3rd issue): B1 (global scale) / Baa2.br (Brazil national
scale)

BRL150 million senior unsecured debentures due March 2016 (2nd
series; 3rd Issue): B1 / Baa2.br

Ratings Rationale

The B1/Baa2.br ratings reflect Brookfield's position among the
largest homebuilders in Brazil, with strong brand name, long track
record in real estate development and good diversity in terms of
product offering ranging from economic to high income apartments
and office buildings. The ratings also consider the benefit of
having Brookfield Asset Management Inc. (BAM; Baa2/ stable) as the
largest individual shareholder. On the other hand, Brookfield's
high leverage and ongoing execution risks constrain the ratings,
as does the sizeable land bank, which is not entirely suitable for
its current business strategy, and its relatively tight liquidity
position.

The 3rd issuance debentures are effectively subordinated to other
secured debt issued at Brookfield's project level, but are rated
at the same level as the company's corporate family rating given
the high amount of unsecured debt in its overall capital structure
and the still comfortable level of unencumbered assets
outstanding, which should provide adequate recovery for the
unsecured debt holders in case of a default. Moody's estimate the
level of unencumbered assets at approximately 1.3 time the amount
of unsecured debt outstanding for fiscal year end 2013.

Brookfield's ratings are currently under review for possible
downgrade given the company's limited liquidity to address
significant debt maturities over the next two years and the
challenges to improve profitability and deleverage its balance
sheet on a timely basis, amid evolving industry fundamentals and
ongoing changes in its governance structure. The ratings review
process, which Moody's expects to conclude swiftly, will focus on
Brookfield's expected capital structure after the completion of
the planned tender offer for outstanding shares, along with the
company's initiatives to lengthen its debt profile.

The ratings could be downgraded if Brookfield proves unable to
address about BRL2.1 billion in corporate debt maturing until 2015
or indicate a clear deleveraging trend within a reasonable
timeframe. In Moody's view, although cash generation could
improve, supported by the high number of project deliveries
combined with lower launches, liquidity and leverage should remain
pressured in the absence of a substantial capital increase or a
major land bank divesture.

A material increase in the relative amount of secured or project
level debt in Brookfield's consolidated capital structure could
also trigger a downgrade of the ratings assigned to the senior
unsecured debentures.

The principal methodology used in this rating was Global
Homebuilding Industry published in March 2009.

Moody's National Scale Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within
a country, enabling market participants to better differentiate
relative risks. NSRs differ from Moody's global scale ratings in
that they are not globally comparable with the full universe of
Moody's rated entities, but only with NSRs for other rated debt
issues and issuers within the same country. NSRs are designated by
a ".nn" country modifier signifying the relevant country, as in
".mx" for M‚xico. For further information on Moody's approach to
national scale ratings, please refer to Moody's Rating Methodology
published in October 2012 entitled "Mapping Moody's National Scale
Ratings to Global Scale Ratings".


DIAGNOSTICOS DA AMERICA: S&P Affirms 'BB' CCR; Outlook Stable
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' global scale
corporate credit rating and 'brAA-' national scale corporate
credit and debt ratings on Diagnosticos da America S.A. (DASA).
The outlook on the corporate credit ratings remains stable.

The ratings on DASA reflect S&P's assessment of its "fair"
business risk profile and "significant" financial risk profile.
S&P's business risk profile is based on its assessment of the
company's "fair" competitive position, reflecting its leading
position and large scale in the Brazilian medical diagnostics
sector, with about 13% of market share, which translates into
reasonable bargaining power with suppliers.  However, the
company's profitability weakened since 2011 partly due to the
integration of several acquisitions.  S&P's business risk
assessment also incorporates its view of the health care services
industry's "intermediate" risk and "moderately high" country risk,
as DASA only operates in Brazil.

S&P don't expect the company to make any significant acquisition
in the next few years because the anti-trust regulator wouldn't
allow greater market concentration and we believe the company will
focus on internal expansion mainly through the opening of new
patient service centers and new lab-to-lab clients.  The company
should continue to benefit from the increasing access to
healthcare, as employment levels in Brazil remain high, and from
its multibrand platform, which allows it to reach customers at
different income levels.  After a period of lower profitability
due to equipment changes and higher expenses to improve service
quality, S&P expects DASA to improve EBITDA margin to above 22%,
through the full integration of acquired assets (after the
approval of MD1 acquisition in December 2013), ongoing gains of
scale related to its fixed-cost structure, higher capacity
utilization, and somewhat different mix of services with focus on
more profitable image diagnostic exams.


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C A Y M A N  I S L A N D S
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CENTRON GLOBAL: Creditors' Proofs of Debt Due May 22
----------------------------------------------------
The creditors of Centron Global Opportunity Fund are required to
file their proofs of debt by May 22, 2014, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on April 9, 2014.

The company's liquidator is:

          Sami Dahmani
          Telephone: (41) 919 1 18540
          Facsimile: (41) 919 1 18542
          UBS Fund Services (Cayman) Ltd
          UBS House, 227 Elgin Avenue
          Grand Cayman
          Cayman Islands


CFS LIQUIDATORS: Creditors' Proofs of Debt Due May 13
-----------------------------------------------------
The creditors of CFS Liquidators Ltd are required to file their
proofs of debt by May 13, 2014, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on March 27, 2014.

The company's liquidator is:

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


CHATEAU ASSET: Court Enters Wind-Up Order
-----------------------------------------
On April 3, 2014, the Grand Court of Cayman Islands entered an
order to wind up the operations of Chateau Asset Management SPC.

The company's liquidator is:

          Stuart Sybersma
          Timothy Derksen
          Deloitte & Touche
          P.O Box 1787, Grand Cayman, KY1-1109,
          Cayman Islands


EUCALYPTUS MACRO: Creditors' Proofs of Debt Due May 22
------------------------------------------------------
The creditors of Eucalyptus Macro Fund Ltd. are required to file
their proofs of debt by May 22, 2014, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on April 9, 2014.

The company's liquidator is:

          DMS Corporate Services Ltd
          c/o Nicola Cowan
          Telephone: (345) 946 7665
          Facsimile: (345) 949 2877
          dms House, 2nd Floor
          P.O. Box 1344 Grand Cayman KY1-1108
          Cayman Islands


LION/SILK: Creditors' Proofs of Debt Due May 15
-----------------------------------------------
The creditors of Lion/Silk Investments Ltd are required to file
their proofs of debt by May 15, 2014, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on April 11, 2014.

The company's liquidator is:

          Stuarts Walker Hersant
          Telephone: (345) 949 3344
          Facsimile: (345) 949 2888
          P.O. Box 2510 Grand Cayman KY1-1104
          Cayman Islands


LION/SILK: Shareholder to Hear Wind-Up Report on May 16
-------------------------------------------------------
The shareholder of Lion/Silk Investments Ltd will hear on
May 16, 2014, at 11:30 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The company commenced liquidation proceedings on April 11, 2014.

The company's liquidator is:

          Stuarts Walker Hersant
          Telephone: (345) 949 3344
          Facsimile: (345) 949 2888
          P.O. Box 2510 Grand Cayman KY1-1104
          Cayman Islands


LION/SILK HOLDINGS: Creditors' Proofs of Debt Due May 15
--------------------------------------------------------
The creditors of Lion/Silk Investments Holdings Ltd are required
to file their proofs of debt by May 15, 2014, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on April 11, 2014.

The company's liquidator is:

          Stuarts Walker Hersant
          Telephone: (345) 949 3344
          Facsimile: (345) 949 2888
          P.O. Box 2510 Grand Cayman KY1-1104
          Cayman Islands


LION/SILK HOLDINGS: Shareholder to Hear Wind-Up Report on May 16
----------------------------------------------------------------
The shareholder of Lion/Silk Investments Holdings Ltd will hear on
May 16, 2014, at 11:30 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The company commenced liquidation proceedings on April 11, 2014.

The company's liquidator is:

          Stuarts Walker Hersant
          Telephone: (345) 949 3344
          Facsimile: (345) 949 2888
          P.O. Box 2510 Grand Cayman KY1-1104
          Cayman Islands


TSF KASUMIGASEKI: Creditors' Proofs of Debt Due May 22
------------------------------------------------------
The creditors of TSF Kasumigaseki are required to file their
proofs of debt by May 22, 2014, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on April 8, 2014.

The company's liquidator is:

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


VEGA CAPITAL: Creditors' Proofs of Debt Due May 13
--------------------------------------------------
The creditors of Vega Capital Ltd. are required to file their
proofs of debt by May 13, 2014, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on April 10, 2014.

The company's liquidator is:

          Carl Gosselin
          Wilmington Trust (Cayman), Ltd.
          P.O. Box 32322 Grand Cayman KY1-1209
          Cayman Islands
          Telephone: (345) 640-6712


VITALITY RE II: Creditors' Proofs of Debt Due May 13
----------------------------------------------------
The creditors of Vitality RE II Ltd. are required to file their
proofs of debt by May 13, 2014, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on April 10, 2014.

The company's liquidator is:

          Carl Gosselin
          Wilmington Trust (Cayman), Ltd.
          P.O. Box 32322 Grand Cayman KY1-1209
          Cayman Islands
          Telephone: (345) 640-6712


WILMINGTON TRUST: Creditors' Proofs of Debt Due May 13
------------------------------------------------------
The creditors of Wilmington Trust CI Holdings Limited are required
to file their proofs of debt by May 13, 2014, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on April 1, 2014.

The company's liquidator is:

          Carl Gosselin
          Wilmington Trust (Cayman), Ltd.
          Attn.: Carl Gosselin
          P.O. Box 32322 Grand Cayman KY1-1209
          Cayman Islands
          Telephone: (345) 640-6712


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C O L O M B I A
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COLOMBIA: Warns of Emergency Decree for Pipeline Standoff
---------------------------------------------------------
Andrew Willis and Oscar Medina at Bloomberg News report that
members of a Colombian indigenous group blocking essential repairs
to the country's second-largest pipeline say they'll peacefully
oppose any government attempts to fix the oil duct using force.

The forest-dwelling U'wa want the Cano Limon-Covenas pipeline
partially re-routed and a cessation of oil exploration activities
by state-controlled Ecopetrol SA (ECOPETL) at the Magallanes site
in the eastern Norte de Santander province, according to Bloomberg
News.

"We will resist, but only using words," U'wa Association Vice
President Heber Tegria told Bloomberg News in a telephone
interview.  "We are not optimistic the government will accept our
requests," Mr. Tegria said, Bloomberg News relates.

Paralysis at the Cano Limon pipeline following an attack by
Marxist rebels March 25 has cut Ecopetrol exports by 2.7 million
barrels so far, the company said in an e-mailed response to
questions, Bloomberg News notes.  The U'wa are also blocking the
entrance to the Magallanes site, Mr. Tegria said, Bloomberg News
relates.

Government, Ecopetrol and U'wa representatives were scheduled to
meet May 1 after earlier attempts to end the standoff failed.

                        State of Emergency

The month-long confrontation at the Ecopetrol-owned pipeline is
threatening Colombia's ability to meet oil export targets and may
force the government to declare a national emergency, Mines and
Energy Minister Amylkar Acosta said, Bloomberg News relates.

"This almost merits a declaration of emergency by the national
government," Mr. Acosta told local radio station Caracol,
Bloomberg News notes.  "There are reasons of state, and there's a
public interest that takes precedence," Mr. Acosta said, relays
the report.

Bloomberg News notes that an emergency declaration would give
Colombian President Juan Manuel Santos powers to rule by decree
for 30 days and would potentially overrule standard protocol when
dealing with the indigenous group.  Royalties from oil, Colombia's
biggest export, are a key source of revenue for the government,
which is currently battling farmer protests ahead of presidential
elections in four weeks, Bloomberg News relates.

The Cano Limon pipeline takes oil from eastern Colombia to the
Caribbean coast, Bloomberg News says.  The U'wa demand the duct's
path be partially altered to bypass ancestral lands that have
suffered repeated oil spills and a rising military presence,
Bloomberg News discloses.

                         'Social Debt'

"The Colombian state has a historic social debt with the U'wa
nation for ethnocide, genocide and ecocide," the group said in an
April 25 statement, demanding COP2 trillion (US$1 billion) in
compensation, Bloomberg News notes.

As well as blocking the pipeline repair works, the indigenous
group has halted gas exports from the Gibraltar field, Mr. Acosta
said, Bloomberg News relates.

"The government has a very difficult balancing act," Bloomberg
News cited James Lockhart Smith, Latin America analyst with risk
consultants Maplecroft, as saying by phone from London.  "It wants
to ensure companies can invest efficiently while making every
attempt to be respectful of indigenous rights."

Colombian pipeline explosions have surged over the past year as
the government holds peace talks in Havana with the country's
largest rebel group, the Revolutionary Armed Forces of Colombia,
or FARC, Bloomberg News discloses.

There were 33 pipeline attacks in the first three months of this
year, and a total of 259 in 2013, according to Defense Ministry
data, Bloomberg News adds.


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


DOMINICAN REP: Commonwealth Countries Mull Mining Industry Impact
-----------------------------------------------------------------
Dominican Today reports that representatives from the countries of
the Commonwealth in the Dominican Republic will meet in their
traditional monthly luncheon, to discuss the importance of mining
and its impact on the nation's economic development.

David Soares, Xstrata Nickel Falcondo Chief Executive Officer in
Dominican Republic will be guest speaker in the luncheon slated
for the Hilton Hotel, hosted by the Chambers of Commerce of Great
Britain, Canada, Trinidad & Tobago, India and the Dominican
Foreign Investment Companies Association (ASIEX), according to
Dominican Today.

The report notes that Mr. Soares will speak on the mining
industry's impact on the country's various productive sectors.

The Roundtable of Commonwealth Countries in the Dominican Republic
promotes bilateral relations between its 53 nations, from as large
as India to as small as Trinidad & Tobago; both rich and poor, but
united by the same language, political system and idiosyncrasy,
the report relates.


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J A M A I C A
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JAMAICA: Innovators Get Pre-qualification for EXIM Bank Loan
------------------------------------------------------------
RJR News reports that a number of Jamaican innovators in the
creative industries have received pre-qualification for an EXIM
Bank loan of up to J$2 million, at a special concessionary rate of
9.5 per cent.

Their work, upon completion, will also receive exposure at tourist
stops across the island, according to RJR News.

The group was among 114 entrants that participated in a Jamaica
Intellectual Property Office (JIPO) Authentic Jamaica Design
Competition, the report relates.



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M E X I C O
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TABASCO: Moody's Changes Ba1 Issuer Rating Outlook to Positive
--------------------------------------------------------------
Moody's de Mexico changed the outlook on the state of Tabasco's
A1.mx (Mexico National Scale) and Ba1 (Global Scale, local
currency) issuer ratings to positive from stable.

Affirmations:

Issuer: Tabasco, State of

Issuer Rating, Affirmed Ba1

Issuer Rating, Affirmed A1.mx

MXN 449.9 million enhanced loan with Santander, Affirmed Baa2

MXN 449.9 million enhanced loan with Santander, Affirmed Aa1.mx

MXN 3 billion enhanced loan with Banorte, Affirmed Baa2

MXN 3 billion enhanced loan with Banorte, Affirmed Aa1.mx

MXN 1.6 billion enhanced loan with Banamex, Affirmed Baa2

MXN 1.6 billion enhanced loan with Banamex, Affirmed Aa2.mx

Ratings Rationale

Moody's revised the outlook of the state of Tabasco's issuer
ratings to positive from stable, reflecting Moody's expectation
that the state's cash financing surpluses along with low debt
levels and positive liquidity position will continue in the near
to medium term reflecting stronger governance and management
practices.

Over the last five years, Tabasco has registered cash financing
surpluses equivalent, on average, to 3.5% of total revenues. In
2013, the state posted a cash financing surplus equivalent to 5.3%
of total revenues, a level higher than national peers. These
results reflect the state's efforts to control expenditure growth
and initiatives to increase own-source revenues enhanced by the
current administration.

The stable financial results are partially underpinned by own-
source revenues, which have grown at a compound annual growth rate
of 30.2% over the period 2009-2013. Own-source revenues represent
8.5% of Tabasco's total revenues, above national peers.

Thanks to frequent budgetary surpluses, the state of Tabasco was
able to maintain low debt levels. Net direct and indirect debt was
equivalent to a low 10% of total revenues at the end of 2013.
Moody's expects debt indicators to remain low at roughly 9% of
total revenues during 2014, as the state does not have plans to
contract additional loans. The state of Tabasco registers high
unfunded pension liabilities estimated on 178% of total revenues
in 2013, a credit challenge.

Furthermore, reflecting cash management measures recently
implemented, the state posted positive liquidity during 2013.
Measured as net working capital (current assets less current
liabilities) liquidity was equivalent to 1.5% of total
expenditures, compared to a -6.4% registered, on average, during
the 2009-2012 period.

What Could Change The Ratings Up/Down

The positive outlook reflects the positive trends of financial
performance, low debt metrics and positive liquidity. Upward
rating pressure would result from a) balanced cash financing
results, b) low debt levels, c) positive liquidity position and d)
strengthening of Tabasco's pension system.

A shift in fiscal policy, generating cash financing deficits,
larger-than-expected debt levels and a deterioration in the
state's net working capital position, could exert downward
pressure on the ratings.

The principal methodology used in this rating was Regional and
Local Governments published in January, 2013.

The period of time covered in the financial information used to
determine state of Tabasco's rating is between January 1, 2009 and
December 31, 2013.

Moody's National Scale Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within
a country, enabling market participants to better differentiate
relative risks. NSRs differ from Moody's global scale ratings in
that they are not globally comparable with the full universe of
Moody's rated entities, but only with NSRs for other rated debt
issues and issuers within the same country. NSRs are designated by
a ".nn" country modifier signifying the relevant country, as in
".mx" for M‚xico. For further information on Moody's approach to
national scale ratings, please refer to Moody's Rating Methodology
published in October 2012 entitled "Mapping Moody's National Scale
Ratings to Global Scale Ratings".


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P A N A M A
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MULTIBANK INC: S&P Revises Outlook to Pos. & Affirms 'BB+' LT ICR
-----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Multibank Inc. y Subsidiarias to positive from stable. At the same
time, S&P affirmed its long-term 'BB+' and short-term 'B' issuer
credit ratings on the bank.

The outlook revision reflects S&P's view that Multibank has
strengthened its capitalization levels; as of Dec. 31, 2013, S&P's
risk adjusted capital (RAC) ratio was 9.96%.  S&P expects this
trend to continue during the next two years.  If the bank
continues to strengthen its capital base through capital
injections and/or the issuance of hybrid capital instruments --
with loss absorption capacity on a going-concern basis -- then
S&P's projected RAC ratio could surpass 10% and remain at that
level for the next couple of years.  In this context, S&P would
revise its assessment on its capital and earnings to "strong" from
"adequate."  This would trigger an upgrade on the bank if its
business and risk positions, funding, and liquidity remained
unchanged.

The ratings on Multibank reflect S&P's view of its "moderate"
business position, "adequate" capital and earnings, "adequate"
risk position, "average" funding, and "adequate" liquidity, as
S&P's criteria define these terms.  The bank's stand-alone credit
profile (SACP) is 'bb+'.

"Under our bank criteria, we use our Banking Industry Country Risk
Assessment's economic risk and industry risk scores to determine a
bank's anchor, the starting point in assigning an issuer credit
rating.  Our anchor for Multibank is 'bbb-', which reflects our
view of the weighted-average economic risk in the countries to
which the bank is exposed through its loan book -- mainly Panama
(representing approximately 70% of loans as of Dec. 31, 2013),
Colombia, Peru, Costa Rica, and other Latin American countries.
We score BICRAs on a scale of '1' to '10', ranging from the lowest
risk banking systems (group '1') to the highest risk (group '10').
Our weighted economic risk score for these countries is '6.0',"
S&P said.

"The common factors behind this score are low income levels in the
countries where the bank operates, which affect the countries'
vulnerability to external shocks, and debt and payment capacity in
countries that have a weak rule of law.  In particular, Panama's
economic risk assessment reflects high levels of household debt
and a limited ability to take on additional loans, which in our
view, results from the country's low per capita GDP.  The
country's economy has become increasingly resilient and
diversified in the past decade and it has shown adequate GDP
growth rates for the past five years.  However, our economic risk
assessment also considers Panama's small domestic market, which
leads to its high reliance on global and regional economic
activity to drive its growth.  In our view, credit growth itself
doesn't worsen economic imbalances, as it is fairly moderate.
Furthermore, whenever the economy slows down, so does credit.
Other factors such as commercial real estate (CRE) prices and the
country's external position pose additional risk in our economic
imbalances assessment, in our view," S&P added.

"Our industry risk assessment recognizes that Panama adequately
regulates and supervises financial institutions, fostering the
financial system's stability.  Despite high leverage levels,
Panama's authorities engage in adequate oversight of the financial
system and apply international standards.  There are some minor
exceptions to this policy, but Panama's major banks' conservative
management mitigates these factors.  Nevertheless, our industry
risk assessment remains limited by the absence of a lender of last
resort in the country.  Although the government offered liquidity
support to all banks in 2008, we are uncertain that it would
provide support again in the event of an adverse economic
scenario," S&P said.

S&P continues to assess Multibank's business position as
"moderate" based on its still small market position within Panama,
where the bank held 70% of its total loans, as of Dec. 31, 2013,
and smaller customer base with respect to other Panamanian banks.
S&P do not believe Multibank holds a significant market position
in any of the business activities that represent a significant
share of its loan portfolio.  Multibank holds less than 6% of the
market of its most relevant business line, the commercial segment,
which represents about 30% of its total loans granted in Panama.
During the past four years, Multibank's loan portfolio has grown
above that of the Panamanian banking industry, which is reflected
in a compound annual growth rate (CAGR) of 23.4% versus the
industry's 13.7%.  However, given Multibank's small customer base,
this aggressive growth is still not reflected in a strong market
position.  As of Dec. 31, 2013, the bank's total loans were $2.1
billion, representing 4.1% of the Panamanian banking system.

"In our view, the Panamanian banking system is highly competitive,
and if domestic players -- in particular those who enjoy higher
economies of scale, access to cheaper funding costs, and wider
distribution networks compared to Multibank -- were to implement
aggressive growth strategies, the low-price environment would
weaken Multibank's ability to attract and retain customers, adding
volatility to its business volumes.  The bank's significant
exposure to small and medium enterprises (SMEs) and the risks
these entities' represent due to their susceptibility to a
potential economic downturn, threaten its business stability.
Panamanian banks' appetite for SMEs is building; therefore,
despite Multibank's strong expertise in this segment, banks with
larger business volumes and greater business line diversification
are better positioned for a downside scenario," S&P said.

As a universal bank, Multibank offers a well-diversified product
range.  As of Dec. 31, 2013, Multibank's total loans were
distributed among corporate and commercial loans (66% versus 54%
for the Panamanian banking industry), personal loans (22% compared
to 19% for the industry), and mortgages (12% versus 27% for the
industry).  Additionally, Multibank's geographic distribution
increasingly supports its total revenues, which in turn boosts its
business position.

In 2013, Multibank incorporated German development bank, DEG, a
subsidiary of the KfW Group (AAA/Stable/A-1+), as stakeholder. DEG
currently holds 7% of Multibank's shares through a US$30 million
capital injection, and will become a strategic partner.  S&P
believes this partnership will further improve the already good
corporate governance standards Multibank has established.

S&P's assessment of Multibank's capital and earnings remains
"adequate."  S&P's RAC ratio on Multibank is at the upper end of
the "adequate" category, and it believes the bank will continue to
further strengthen its capital base, which will likely lead S&P to
raise its capital and earnings assessment on Multibank.  During
2013, Multibank strengthened is risk-adjusted capitalization due
to significantly lower-than-expected credit expansion (observed
loan growth was 17% in 2013 while we expected 30% growth), and
higher-than-expected capital injections (US$40 million versus our
expectation for US$30 million).  S&P's RAC ratio was 9.96% at
year-end 2013.  In S&P's view, Multibank will continue to
strengthen its capitalization levels through its internal capital
generation capacity, and through the issuance of additional
preferred shares with similar characteristics to those that are
outstanding, which we assess as having "intermediate" equity
content.  Therefore, S&P expects its RAC ration on Multibank will
be consistently above 10.25% in the next two years.  S&P's
financial forecasts take into consideration the following
assumptions for 2014 and 2015:

   -- Panama's expected GDP of about5%;

   -- Loan portfolio growth of about 19% in 2014 and 15% in 2015;

   -- Nonperforming assets (NPAs; NPAs = past due loans plus
      repossessed assets) of about 1% fully covered by reserves
      and net charge-offs below 0.4%;

   -- Return on assets of about 1.4% with a net interest margin at
      about 3.5%, and credit loss provisions representing around
      9.5% of its operating revenues.  Non-interest expenses to
      operating revenues will be at about 55%.  Multibank expects
      to generate $7 million of additional income by year-end
      2014.  However, if the bank is unsuccessful, it plans to
      make a capital injection (common stock) to cover that
      amount;

   -- A $29 million issuance of preferred shares with intermediate
      equity content (according to our criteria) during the
      second-half of 2014, and an additional $15 million issuance
      of these instruments in 2015; and

   -- In case the dividend payout ratio exceeds 18%--setting
      pressure on the RAC ratio--then the bank's shareholders
      would compensate it with capital injections of common
      equity.

In S&P's view, Multibank's quality of capital and earnings remains
moderate, reflecting the important participation of hybrid
instruments within its total adjusted capital, 22% as of Dec. 31,
2013.  S&P expects this ratio to be at about 25% in the next two
years.  Multibank's US$73 million preferred shares are fully
integrated in S&P's estimates for the bank's total adjusted
capital.  In S&P's opinion, Multibank's earnings capacity is
moderate.  Although the bank's pre-provision operating income
fully covers its normalized losses, according to S&P's criteria,
its earnings buffer remains at about 1%.

During 2013, Multibank's market-related income was somewhat
affected by the volatility associated with the U.S. Federal
Reserve's announcements regarding potential changes in its
monetary policy in the near future.  During the third quarter
2013, Multibank reclassified some securities from the "available
for sale" to the "hold-to-maturity" category.  This was because at
that time these securities had unrealized losses (US$11.3
million), and the bank believed that given the high credit quality
of the issuers, those securities would recover in the future.
That strategy allowed the bank to remove volatility from its
bottom-line results.  Multibank's board of directors plans to
cover these securities with derivatives to avoid a drop in its
capital base due to the unrealized losses.

S&P continues to assess Multibank's risk position as "adequate."
In S&P's view, the bank's healthy asset quality metrics, and the
management's continued efforts to improve its risk diversification
within its loan portfolio are positive factors in S&P's risk
position assessment, as they limit the bank's past aggressive
credit expansion.  In spite of Multibank's aggressive growth
strategy implemented in recent years, during 2013, the bank's
growth slowed to 17% (the bank's CAGR of for the past four years
was 23.4%).  This slowdown was primarily due to the marginal
growth in its commercial loans in 2013 of less than 5%, which S&P
believes was associated with challenges related to the Colon Free
Trade Zone (CFTZ).  For Multibank, the exposure to CFTZ represents
about 17% of its commercial loans.  The bank has reduced its
exposure to this business line following what it considers low
margins related to this business, resulting in a 25% contraction
in 2013.  The banking system's growth in this line was about 10%.
In order to mitigate CFTZ risks, Multibank limits its customers to
those who have a long track record operating this business line.

"In our view, there is no material risk for Multibank in terms of
the concentration of exposures to individual debtors,
counterparties, and industries or sectors, or aggregations of risk
across asset classes or risk types.  We believe the bank has an
effective strategy to diversify its loan portfolio by individual
borrower.  As of Dec. 31, 2013, Multibank's top 20 customers
represented 10.4% of its total loans and 73% of its total equity.
The bank's exposure to related parties remains marginal; it
represented 1.2% of the bank's total assets at year-end 2013 (1.5%
in 2012).  On the other hand, the commercial segment remains as
the most relevant business line, representing 35% of Multibank's
loan portfolio as of Dec. 31, 2013.  Construction represents 9% of
the bank's total loans and, in our view, the bank's relatively low
risk appetite is reflected in the low participation of the
commercial real estate loans within the construction business
segment (12%).  Multibank is oriented to middle-market residential
developers, which, in our view, represent lower risk with respect
to those oriented in high-end projects," S&P said.

S&P believes Multibank will maintain its adequate underwriting
policies which will allow it to maintain low credit losses during
the next 12-24 months, representing a positive factor for its risk
position.  As of Dec. 31, 2013, Multibank's NPAs represented 0.9%
of its total loans and were fully covered by reserves (1.8 x).
S&P expects these ratios to remain relatively stable during the
next two years, as it expects Multibank's strong expertise in the
commercial sector and given the high participation of payroll
loans within the bank's consumer and mortgage portfolios will
continue to support its asset quality.

"In our opinion, Multibank has "average" funding in the Panamanian
banking system and "adequate" liquidity.  Total deposits continue
to be the bank's primary funding source, representing 75% of its
funding base as of Dec. 31, 2013.  We believe the bank's deposit
base is well-diversified considering the high participation of
retail deposits (around 50%) within its total deposit base, which
we consider to be more stable than those that are wholesale.
Additional funding sources include repos (3.4%), interbank loans
(20%), and corporate bonds (1.6%).  We view the bank's ability to
consistently fully cover its stable funding needs with its
available stable funding as a positive factor.  At year-end 2013,
this ratio was 106.8% with a three-year average of 107.2%, which
we consider as average compared to other banks in the country and
in the region.  One of the bank's main challenges is to raise
funding outside of Panama in order to finance its future growth in
the countries where the bank is expanding.  In addition, we
believe the bank faces challenges as it diversifies its funding
sources, aiming at longer tenor funds to better match its balance
sheet," S&P said.

Multibank has $73 million preferred shares that S&P considers
"intermediate" equity content hybrid instruments.  These are fully
incorporated within its total adjusted capital, and S&P believes
this kind of instruments could represent an additional source of
funding for the bank in the future.

Multibank's liquidity remains "adequate."  Panamanian banks in
general, report higher liquidity ratios with respect to other
banking industries in the region.  This reflects the absence of a
lender of last resort in Panama.  In the case of Multibank, its
coverage of short-term wholesale funding through broad liquid
assets (1.6x as of Dec. 31, 2013 while the average of the last
three years was 1.9x) is adequate.  However, this ratio is
slightly below that of other Panamanian players'; however, S&P
believes Multibank's liquidity is still adequate and in line with
other players within the region.  As of Dec. 31, 2013, Multibank's
broad liquid assets represented about 29% of the bank's total
deposit base.

The positive outlook reflects S&P's expectation that Multibank
will keep improving its risk-adjusted capital through capital
injections and/or issuing hybrid capital instruments -- with
similar equity characteristics -- with loss absorption capacity on
a going-concern basis.  S&P believes that if Multibank issues
additional preferred shares during 2014 and 2015, and considering
its expected internal capital generation capacity for the next two
years, S&P's RAC ratio on the bank could surpass 10% consistently.

S&P would revise its assessment on its capital and earnings to
"strong" from "adequate" if its projected RAC remains consistently
above 10% because:

   -- Multibank's loan growth meets our expectations (19% in 2014
      and 15% in 2015),

   -- It strengthens its capital through capital injections of
      common stock and/or hybrid instruments, and in case the
      dividend payout ratio exceeds 18%--setting pressure on the
      RAC ratio--then the bank would compensate it with capital
      injections of common equity,

A "strong" capital and earnings assessment could then trigger an
upgrade on Multibank in the next six to 12 months, if its business
and risk positions, funding, and liquidity remain unchanged.

S&P could revise Multibank's outlook to stable if its observed
results (loan growth, capitalization levels, and dividend
payments) fall short of S&P's financial forecasts, resulting in a
RAC ratio below 10% and if Multibank's business and risk
positions, and funding and liquidity remain unchanged.



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


BANCO DE LA NACION: Moody's Withdraws Caa1 Deposit Rating
---------------------------------------------------------
Moody's Investors Service has withdrawn all of its ratings for
Banco de la Nacion Argentina (Uruguay) for business reasons.

The following ratings of Banco de la Nacion Argentina (Uruguay)
were withdrawn:

Long- and short-term global local currency deposit rating of
Caa1/Not Prime, stable outlook

Long term national scale local currency deposit rating of Ba2.uy

Long- and short-term global foreign currency deposit rating of
Caa1/Not Prime, stable outlook

Long term national scale foreign currency deposit rating of Ba2.uy

Ratings Rationale

Moody's has withdrawn the rating for its own business reasons.

Moody's National Scale Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within
a country, enabling market participants to better differentiate
relative risks. NSRs differ from Moody's global scale ratings in
that they are not globally comparable with the full universe of
Moody's rated entities, but only with NSRs for other rated debt
issues and issuers within the same country. NSRs are designated by
a ".nn" country modifier signifying the relevant country, as in
".mx" for Mexico.

Banco de la Nacion Argentina (Uruguay) is headquartered in
Montevideo, Uruguay, and as of December 2013 it had US$139.5
million in assets and US$16.2 million in equity.


                            ***********


Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades.  Prices
for actual trades are probably different.  Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind.  It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.

Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

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                            ***********


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

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