TCRLA_Public/140507.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

           Wednesday, May 7, 2014, Vol. 15, No. 89


                            Headlines



A R G E N T I N A

ALTO PARANA: S&P Affirms 'CCC+' Rating; Outlook Negative
DISTRIBUIDORA DE GAS: Moody's Assigns Caa1/Ba1.ar CFR
FIDEICOMISO FINANCIERO 10: Moody's Rates ARS63.3MM Certs. 'Ca'
FIDEICOMISO FINANCIERO 79: Moody's Rates ARS17.5MM Certs. 'B2.ar'


B R A Z I L

ARALCO SA: Bondholders Said Preparing Bid to Avert Chapter 11
BANCO BMG: Moody's Affirms B1 Deposit Rating; Outlook Stable
COMPANHIA DE SANEAMENTO: S&P Revises Outlook & Affirms BB+ Rating
USINA CAETE: S&P Revises Outlook to Neg. & Affirms 'BB-' CCR


C A Y M A N  I S L A N D S

ASIAN CENTURY: Members' Meeting Postponed Sine Die
ASIAN CENTURY MASTER: Members' Meeting Postponed Sine Die
ASIAN CENTURY SMALLER: Members' Meeting Postponed Sine Die
BCDX BRAZIL: Shareholders' Final Meeting Set for May 13
CAC CENTURY: Members' Final Meeting Set for June 4

CIS EQUITY: Members' Final Meeting Set for May 20
HSBC MASTER: Shareholder to Receive Wind-Up Report on May 20
MAOMING FUND: Shareholders' Final Meeting Set for May 14
MLR CAPITAL: Shareholders' Final Meeting Set for May 16
PELOTON ABS: Members' Final Meeting Set for May 13

RESAT LIMITED: Members Receive Wind-Up Report


C H I L E

LATAM AIRLINES: Group's 1Q14 Conference Call Set May 14
LATAM AIRLINES: Posts Preliminary Monthly Statistics for March
LATAM AIRLINES: Fitch Affirms Issuer Default Rating at 'BB'


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Free Trade Pact Brings Disadvantages


E C U A D O R

ECUADOR: Said to Step Up Offers to Buy Back Defaulted Bonds


M E X I C O

MEXICO: Fitch Publishes 2013 Performance and Outlook
TV AZTECA: Posts Ps.2,541 Million in First Quarter 2014
TV AZTECA:  Fitch Affirms 'BB-' IDR; Outlook Stable


P A N A M A

PANAMA: Fitch Says Spending Control a Key Challenge for Next Gov't


P U E R T O   R I C O

DORAL FINANCIAL: Fitch Cuts Issuer Default Rating to 'C'


                            - - - - -


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


ALTO PARANA: S&P Affirms 'CCC+' Rating; Outlook Negative
--------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'CCC+' foreign
currency and 'B-' local currency ratings on Alto Parana S.A.
(APSA).  The outlook remains negative.  The rating affirmation
follows S&P's ordinary annual review.

The 'BBB-' issue-level rating on APSA's $270 million 2017 bond is
the same as the corporate credit rating on the parent, Celulosa
Arauco y Constitucion S.A. (ARAUCO) due to its full and
unconditional payment guarantee.

S&P's 'CCC+' foreign currency rating on APSA derives from its
'CCC+' transfer and convertibility (T&C) assessment on Argentina
and the absence of enough mitigants to be rated above the T&C, as
the company's assets are 100% exposed to Argentina.  "Absent of
T&C risk, our 'B-' local currency rating derives from our belief
that the company could generate operating cash flow to serve its
financial obligations under a sovereign stress scenario," said
Standard & Poor's credit analyst Francisco Serra.

The negative outlook mirrors that on Argentina.  It also reflects
S&P's view of difficult refinancing, due to high interest rates
and a weak operating environment.


DISTRIBUIDORA DE GAS: Moody's Assigns Caa1/Ba1.ar CFR
-----------------------------------------------------
Moody's Latin America has assigned Caa1/Ba1.ar first time
corporate family ratings to Distribuidora de Gas Cuyana S.A.
("DGCU"). The rating outlook is stable.

Ratings Rationale

DGCU's Caa1/Ba1.ar ratings primarily reflect DGCU's very solid
credit metrics derived from its unleveraged operations, its
historically strong cash position and fair cash flow generation.
Offsetting factors of these strengths are the unfavorable and
unpredictable regulatory framework in Argentina despite the recent
tariff increase that Moody's expect will be positive for the gas
distribution sector.

Last April 7, Argentina's gas regulator announced that it had
raised the tariff that Argentine gas distribution utilities can
charge their customers, effective April 1. The higher tariff
comprises a higher gas price and a higher distribution margin that
the utilities can charge above a higher gas price based upon
consumption to their residential customers. Despite the material
impact of inflationary cost increases, the distribution margin has
been the same for more than 12 years.

In spite of the frozen tariffs, DGCU has managed to keep operating
margins positive through effective cost control measures and
higher sales mainly due to dynamic growth in its client base,
which substantially mitigated operating cost increases. The
company's high cash balances have also contributed to strengthen
DGCU's EBITDA margin through the resulting interest income. The
fixed charge that the company is currently charging to end
consumers (FOCEGAS) since it was introduced at the end of 2012 by
the regulatory authorities (Resolution ENARGAS 2407/12) has also
contributed to alleviating the declining trend in DGCU's operating
margin.

As a result of a very conservative financial policy, DGCU has been
able to keep its balance sheet without debt for many years,
helping to maintain very strong credit metrics despite the
company's declining margins and cash flow generation. The absence
of any debt burden coupled with elevated cash balances has enabled
DGCU to consistently pay dividends to its shareholders which is
unusual when compared to most of the other companies operating in
the gas distribution sector.

The stable outlook for DGCU mainly reflects Moody's stable outlook
for Argentina's government bond rating and Moody's view that
DGCU's credit rating is highly dependent on the credit quality of
the Argentine government. Because DGCU is a local regulated gas
utility and therefore fully exposed to the domestic market and
regulations its ratings are capped by the sovereign bond rating.
As a result, a positive rating action at the sovereign level could
prompt an upgrade on DGCU's rating. The stable outlook also
reflects Moody's expectation of DGCU maintaining adequate levels
of cash to sustain its operations and positive operating margins.

A rating downgrade could materialize if margins and cash
generation deteriorate, and if the company's financial strategy
becomes more aggressive, such as a negative RCF or a debt to
EBITDA ratio higher than 2.0 times. Any negative rating action at
the sovereign level could also add downward rating pressure for
DGCU.

DGCU was created in 1992 as a result of the privatization of the
estate-owned Gas Company, Gas del Estado. It is one of the 9 gas
distribution companies in the country with operations in three
western provinces of Argentina, Mendoza, San Juan and San Luis.
The area of service has 2.85 million inhabitants and DGCU has over
half a million clients and revenues of approximately AR$ 350
million (USD 55 million) for the fiscal year 2013. DGCU is
controlled by Inversora de Gas Cuyana S.A. (51%), a holding
company that is 76% owned by ENI S.p.A. (A3, negative) and 24% by
E.ON Espa¤a, which is controlled by E.ON SE ((P)A3, negative).


FIDEICOMISO FINANCIERO 10: Moody's Rates ARS63.3MM Certs. 'Ca'
--------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has rated
Fideicomiso Financiero Supervielle Leasing 10, a lease-backed
transaction that will be issued by TMF Trust Company (Argentina)
S.A. - acting solely in its capacity as Issuer and Trustee.

The securities for this transaction have not yet been placed in
the market. The transaction is pending approval from the Comision
Nacional de Valores, if any assumption or factor Moody's considers
when assigning the ratings change before closing, the ratings may
also change.

ARS 147,833,000 in Floating Rate Debt Securities of "Fideicomiso
Financiero Supervielle Leasing 10", rated Aa2.ar (sf) (Argentine
National Scale) and B1 (sf) (Global Scale, Local Currency)

ARS 63,357,000 in Certificates of "Fideicomiso Financiero
Supervielle Leasing 10", rated Ca.ar (sf) (Argentine National
Scale) and Ca (sf) (Global Scale, Local Currency)

Ratings Rationale

The rated securities are payable from the cash flow coming from
the assets of the trust, which is an amortizing pool of
approximately 626 eligible lease contracts denominated in
Argentine pesos, bearing fixed, mixed and floating interest rates,
originated by Banco Supervielle, in an aggregate amount of ARS
211,199,820.03.

Approximately 10.23% of the securitized leases will bear a
floating rate (Corrected BADLAR plus a spread). These loans have
an average minimum interest rate of 14.02% plus spread of 813
basis points on average, and they have no maximum interest rate.
Fixed rate leases (approximately 18.98% of the pool) will bear an
average interest rate of 18.33%. Finally, about 70.79% of the pool
will bear a mixed interest rate (a fixed average of 15.20%
interest rate during the first 28 months of the loans, and then a
floating interest rate of BADLAR Total plus an average spread of
400 basis points until the loan's final maturity).

The Floating Rate Debt Securities represent 70% of the total
issuance balance and will bear a BADLAR Privada interest rate plus
a spread with a minimum of 15% and a cap of 28%. BADLAR Corregida
has been historically 200 basis points higher than BADLAR Privada.
Moreover, BADLAR Total has been historically 125 basis points
lower than BADLAR Privada.

These lease contracts were originated by Banco Supervielle and
were granted to large companies, SMEs and high income individuals.
Supervielle's risk department underwrote all the securitized
leases.

Overall credit enhancement is comprised of 30% subordination for
the Floating Rate Debt Securities. In addition, the transaction
has various reserve funds and benefits from excess spread.

Factors that would lead to an upgrade or downgrade of the rating:

Factors that may lead to a downgrade of the ratings include an
increase in delinquency levels beyond the level Moody's assumed
when rating this transaction. Although Moody's analyzed the
historical performance data of previous transactions and similar
receivables originated by Supervielle, the actual performance of
the securitized pool may be affected, among others, by the
economic activity.

Factors that may lead to an upgrade of the ratings include the
building of credit enhancement over time due to the turbo
sequential payment structure, when compared with the level of
projected losses in the securitized pool.

Loss and Cash Flow Analysis:

Moody's considered the credit enhancement provided in this
transaction through the initial subordination levels for each
rated class, as well as the historical performance of
Supervielle's portfolio. In addition, Moody's considered factors
common to lease securitizations such as delinquencies, prepayments
and losses; as well as specific factors related to the Argentine
market, such as the probability of an increase in losses if there
are changes in the macroeconomic scenario in Argentina. Finally,
Moody's also evaluated the back-up servicing arrangements in the
transaction.

These factors were incorporated in a cash flow model that takes
into account all the relevant features of the transaction's assets
and liabilities. Monte Carlo simulations were run, which
determines the expected loss for the rated securities.

In assigning the rating to this transaction, Moody's assumed a
lognormal distribution for defaults on the main pool with a 5%
mean and a coefficient of variation of 70%. Also, Moody's assumed
a lognormal distribution for prepayments with a 5% mean and 70%
coefficient of variation .These assumptions are derived from the
historical performance to date of previous lease-backed
securitizations of Banco Supervielle and by Moody's qualitative
judgment. Servicer default was modeled by simulating the default
of the Banco Supervielle as the servicer consistent with its
current rating of Caa1/Ba1.ar. In the scenarios where the servicer
defaults, Moody's assumed that the defaults on the pool would
increase by 20 percentage points.

The model results showed 2.53% expected loss for the Floating Rate
Debt Securities and 65.34% for the Certificates.

Finally, Moody's also evaluated the back-up servicing arrangements
in the transaction. If Banco Supervielle is removed as servicer,
TMF Trust Company (Argentina) S.A.- will be appointed as the back-
up servicer.

Stress Scenarios:

Moody's ran several stress scenarios, including increases in the
default rate assumptions. If default rates were increased 3% from
the base case scenario (that is, if we assume a mean default rate
of 8%), the ratings of the Floating Rate debt securities would be
unchanged. The global ratings for the Certificates would likely be
downgraded to C (sf).

The principal methodology used in this rating was "Moody's
Approach to Rating ABS Backed by Equipment Leases and Loans"
published December 2013.

Potential Mapping Recalibration From Global Scale To National
Scale Ratings

With the recent downgrade of the government of Argentina on the
global rating scale and other issuers whose risk profiles are
affected by related credit considerations, the distribution of
ratings among issuers in Argentina has become compressed within
the bottom half of the national rating scale. As a result, the
current mapping of global scale ratings to national scale ratings
may no longer be adequately serving one of its intended purposes,
which is to provide substantially greater potential credit
differentiation among issuers in Argentina than is possible on the
global rating scale. Moody's is therefore assessing the
opportunity to revise its mapping from global scale ratings to
national scale ratings for Argentina. If the mapping is revised,
the new scale would likely imply that higher rated Argentine
issuers would be remapped to higher ratings on the national scale.


FIDEICOMISO FINANCIERO 79: Moody's Rates ARS17.5MM Certs. 'B2.ar'
-----------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo rates
Fideicomiso Financiero Supervielle Creditos 79, a transaction that
will be issued by TMF Trust Company (Argentina) S.A. - acting
solely in its capacity as Issuer and Trustee.

The securities for this transaction have not yet been placed in
the market. The transaction is pending approval from the Comision
Nacional de Valores, If any assumption or factor Moody's considers
when assigning the ratings change before closing, the ratings may
also change.

ARS 232,500,000 in Floating Rate Debt Securities of "Fideicomiso
Financiero Supervielle Creditos 79", rated Aa2.ar (sf) (Argentine
National Scale) and B1 (sf) (Global Scale, Local Currency)

ARS 17,500,000 in Certificates of "Fideicomiso Financiero
Supervielle Creditos 79", rated B2.ar (sf) (Argentine National
Scale) and Caa2 (sf) (Global Scale, Local Currency)

Ratings Rationale

The rated securities are payable from the cash flow coming from
the assets of the trust, which is an amortizing pool of
approximately 26,662 eligible personal loans denominated in
Argentine pesos, with a fixed interest rate, originated by Banco
Supervielle, in an aggregate amount of ARS 250,002,225.38.

These personal loans are granted to pensioners that receive their
monthly pensions from ANSES (Argentina's National Governmental
Agency of Social Security - Administracion Nacional de la
Seguridad Social). The pool is also constituted by loans granted
to government employees of the Province of San Luis. Banco
Supervielle is the payment agent entity and automatically deducts
the monthly loan installment directly from the employee's paycheck
and pensioner's payment.

Overall credit enhancement is comprised of 7% of subordination for
the Class A Floating Rate Debt Securities. In addition the
transaction has various reserve funds and excess spread.

Factors that would lead to an upgrade or downgrade of the rating:

Factors that may lead to a downgrade of the ratings include an
increase in delinquency levels beyond the level Moody's assumed
when rating this transaction, and a disruption in the flow of
payments from ANSES or the Government of San Luis to pensioners
and employees respectively.

Factors that may lead to an upgrade of the ratings include the
building of credit enhancement over time due to the turbo
sequential payment structure, when compared with the level of
projected losses in the securitized pool.

Loss and Cash Flow Analysis:

Moody's considered the credit enhancement provided in this
transaction through the initial subordination levels for each
rated class, as well as the historical performance of
Supervielle's portfolio. In addition, Moody's considered factors
common to consumer loans securitizations such as delinquencies,
prepayments and losses; as well as specific factors related to the
Argentine market, such as the probability of an increase in losses
if there are changes in the macroeconomic scenario in Argentina.
These factors were incorporated in a cash flow model in order to
determine the expected loss for the rated securities. Finally,
Moody's also evaluated the back-up servicing arrangements in the
transaction.

In assigning the rating to this transaction, Moody's assumed a
lognormal distribution for defaults on the main pool with a mean
of 2.5% and a coefficient of variation of 50%. Also, Moody's
assumed a lognormal distribution for prepayments with a mean of
25% and a coefficient of variation of 70%. These assumptions are
derived from the historical performance to date of the
Supervielle's pools. Servicer default was modeled by simulating
the default of the Banco Supervielle as the servicer consistent
with its current rating of Caa1/Ba1.ar. In the scenarios where the
servicer defaults, Moody's assumed that the defaults on the pool
would increase by 20 percentage points.

The model results showed 2.40% expected loss for the Floating Rate
Debt Securities and 17.88% for the Certificates.

Finally, Moody's also evaluated the back-up servicing arrangements
in the transaction. If Banco Supervielle is removed as servicer,
TMF Trust Company (Argentina) S.A. will be appointed as the back-
up servicer.

Stress Scenarios:

Moody's ran several stress scenarios, including increases in the
default rate assumptions. If default rates were increased 6% from
the base case scenario for the pool (i.e., mean of 8.5% and a
coefficient of variation of 50%), the ratings of the Floating Rate
debt securities and of the Certificates would likely be downgraded
to B2 (sf) and Ca (sf) respectively.

The principal methodology used in this rating was "Moody's
Approach to Rating Consumer Loan ABS Transactions" published in
May 2013.

Potential Mapping Recalibration From Global Scale To National
Scale Ratings

With the recent downgrade of the government of Argentina on the
global rating scale and other issuers whose risk profiles are
affected by related credit considerations, the distribution of
ratings among issuers in Argentina has become compressed within
the bottom half of the national rating scale. As a result, the
current mapping of global scale ratings to national scale ratings
may no longer be adequately serving one of its intended purposes,
which is to provide substantially greater potential credit
differentiation among issuers in Argentina than is possible on the
global rating scale. Moody's is therefore assessing the
opportunity to revise its mapping from global scale ratings to
national scale ratings for Argentina. If the mapping is revised,
the new scale would likely imply that higher rated Argentine
issuers would be remapped to higher ratings on the national scale.


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



ARALCO SA: Bondholders Said Preparing Bid to Avert Chapter 11
-------------------------------------------------------------
Gerson Freitas Jr. at Bloomberg News reports that Aralco SA-Acucar
& Alcool will negotiate new debt terms directly with bondholders
in a bid to cancel the judicial restructuring request, according
to two people with knowledge of the talks.

A group representing about 80 percent of bonds will present the
Aracatuba, Brazil-based company a proposal to forgo or delay some
payments, or a combination of both, the people said, asking not to
be named because the extra-judicial process is confidential and
may not lead to a binding accord, according to Bloomberg News.

Bloomberg News notes that Bondholders are also negotiating a
standstill agreement with creditor banks, one of the people said.
To nullify the bankruptcy protection process, an accord would have
to be reached before the Brazilian court accepts the filing.

Sugar-producer bonds have plummeted after a glut of the sweetener
pushed prices to the lowest in almost four years while Brazil's
inflation-fighting gasoline price caps also serve to contain
domestic ethanol prices, Bloomberg News relates.

Bloomberg News notes that the company, which has cut about 2,000
jobs and shut one of its units, needs to skip interest payments to
keep crushing and invest in planting, said one of the people.

Aralco SA-Acucar & Alcool is a Brazilian sugar and ethanol
producer.


BANCO BMG: Moody's Affirms B1 Deposit Rating; Outlook Stable
------------------------------------------------------------
Moody's Investors Service affirmed all ratings assigned to Banco
BMG S.A. (BMG) including the E+ BFSR, which maps to a b1 baseline
credit assessment, B1 long-term global local and foreign currency
deposit ratings and foreign currency senior and subordinated bond
ratings of B1 and B2, respectively. The foreign currency senior
unsecured debt rating assigned to the outstanding November 2016
Tier 2 notes issued by Banco de Cr‚dito e Varejo S.A. (BMG's
wholly-owned subsidiary) was also affirmed. All ratings remain
with a stable outlook.

This rating action follows the announcement of the agreement with
Itau Unibanco S.A. to consolidate the payroll lending activities
at the joint-venture Banco Itau BMG Consignado S.A. released on
April 29th 2014.The transaction is subject to regulatory approval.

The following ratings assigned to Banco BMG were affirmed:

Bank financial strength of E+, which maps to a b1 baseline credit
assessment

Long-term global local currency deposit rating: B1, stable outlook

Short-term global local currency deposit rating: Not Prime

Long-term foreign currency deposit rating: B1, stable outlook

Short-term foreign currency deposit rating: Not Prime

Long-term foreign currency senior unsecured debt rating: B1,
stable outlook

Long-term Foreign currency senior unsecured debt rating assigned
to GMTN program: (P)B1, stable outlook

Foreign currency subordinated debt rating: B2, stable outlook

Long-term Brazilian national scale deposit rating: Baa3.br

Short-term Brazilian national scale deposit rating: BR-3

Ratings Rationale

In affirming BMG's ratings, Moody's acknowledges the positive
impact of the transaction entered into with Itau Unibanco S.A.
("Itau") on BMG's credit profile. Under the terms of the
transaction, BMG will cede 100% of its payroll lending business to
Banco Itau BMG Consignado, the payroll-joint-venture established
with Itau in 2012, and increase its ownership stake to 40% from
30%. The deal will have positive effects on BMG's liquidity
structure and funding costs through the repayment of high cost
long-term funding lines, as well as on the bank's high operating
costs, largely related to this business. At the same time, BMG's
capitalization will also improve because the transfer of its
payroll loans will release substantial regulatory capital. In
addition, the increase of BMG's ownership in the joint-venture
will also boost gains on equity participation in this high-growth
business, supported by Itau Unibanco's funding capacity and
scalability.

Moody's notes, however, that BMG will become a far smaller bank
following the completion of the transaction, because its loan book
will decline to approximately BRL4 billion based on latest
available financials as of December 2013. The management plans to
reposition the bank's franchise as a lender to small and mid size
companies, auto finance and payroll credit card businesses.
Because of the riskier and slow growth nature of these businesses,
the bank's earnings and asset quality may weaken particularly in a
scenario of modest economic growth that constrains credit demand,
and competition that pressures margins. Future profitability
dynamics will also rely on the bank's ability to grow its modest
interest-earning assets to reinforce recurring revenues generation
over the course of the next two years, and thus, generating
sufficient cash flow to repay remaining expensive third-party
liabilities with medium term maturity.

The local currency deposit rating is B1, directly maps from the
bank's standalone credit assessment in the global long-term scale,
and does not benefit from support uplift given the light footprint
of the bank in the deposit market. Moody's also assigns a long-
term deposit rating on the national scale for Brazil of Baa3.br.

The last rating action on Banco BMG and Banco Credito e Varejo
occurred on 20 June 2013, when Moody's affirmed all ratings
including the E+ BFSR, the local and foreign currency deposit
ratings as well as all foreign currency debt ratings and national
scale deposit ratings. The short-term ratings remained unchanged
and outlook was changed to stable from negative for all the
ratings.

Banco BMG S.A. is headquartered in Belo Horizonte, Brazil and had
consolidated assets of R$28.1 billion (US$11.9 billion) and equity
of R$3.4 billion (US$1.4 billion) as of December 31, 2013.


COMPANHIA DE SANEAMENTO: S&P Revises Outlook & Affirms BB+ Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP) to
stable from positive.  At the same time, S&P affirmed its 'BB+'
global scale and 'brAA+' Brazilian national scale corporate credit
ratings on the company.  Its stand-alone credit profile (SACP) is
'bb+'.

"The outlook revision reflects our belief that SABESP's EBITDA
will weaken as a result of the measure to manage the severe
drought in the region.  Levels at SABESP's main water reservoir,
Cantareira, have dropped to 10% as of May 2, 2014, from 27% as of
Jan. 10, 2014," said Standard & Poor's credit analyst Julyana
Yokota.  The levels were 48.78% and 62.73%, respectively, for the
same dates in 2013.  In February 2014, SABESP and the state
government implemented a program to encourage lower water usage by
its customers by giving a 30% discount to the bills of the clients
who reduced their consumption by 20%.

The ratings on SABESP reflect its 'bb+' SACP and incorporate S&P's
view that there is a "moderately high" likelihood of extraordinary
support from the stateof Sao Paulo (BBB-/Stable/--).  S&P's
assessment of SABESP's SACP reflects its "satisfactory" business
risk profile and "significant" financial risk profile, as S&P's
criteria define these terms.

"We apply our criteria for government-related entities (GREs) in
our analysis of SABESP, because the state of Sao Paulo owns 50.3%
of SABESP.  The remaining shares are publicly traded, both locally
and on the NYSE through ADRs.  Our belief of a "moderately high"
likelihood of extraordinary support stems from our view of
SABESP's "important" role because it provides essential services
to the state's population and that it has a "strong" link with the
state based on its majority equity stake in the company.  For
entities we view as benefiting from supportive government
policies, possibly through direct assistance or extraordinary
intervention, but the likelihood of the latter is lower, the
ratings are usually more closely aligned with the SACP," S&P
noted.


USINA CAETE: S&P Revises Outlook to Neg. & Affirms 'BB-' CCR
------------------------------------------------------------
Standard and Poor's Ratings Services revised the outlook on Usina
Caete S.A. - NE (Caete) to negative from stable.  At the same
time, S&P affirmed its 'BB-' global scale and 'brA-' national
scale corporate credit and issue-level ratings on the company.

"The negative outlook reflects our expectation that Caete will
continue to post weaker than expected cash flow generation amid
still low, but improving, utilization capacity and sugar prices,"
said Standard & Poor's credit analyst Flavia Bedran.  In 2013, a
severe drought in northeastern Brazil weakened Caete's
productivity, requiring it to purchase more sugarcane from third
parties and exposing it to non-recurring, higher irrigation costs,
which drove down its profitability.  Caete reported an EBITDA
margin of 35.9% in 2013, compared to 37.6% in 2012.  Moreover, the
related high working capital and capital expenditures (capex)
needs required the company to raise more debt, increasing its
short-term maturities, which weakened its liquidity position and
metrics.  We now view the company's liquidity as "less than
adequate."  On the other hand, a weaker Brazilian real, higher
utilization capacity compared to 2012, and somewhat better ethanol
prices partially mitigated low sugar prices.


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


ASIAN CENTURY: Members' Meeting Postponed Sine Die
--------------------------------------------------
The members' meeting of Asian Century Quest Offshore Fund, Ltd on
March 4, 2014, was postponed until further notice.

The company's liquidator is:

          Ogier
          c/o Desiree Jacob
          Telephone: (345) 815 1779
          Facsimile: (345) 949 9877


ASIAN CENTURY MASTER: Members' Meeting Postponed Sine Die
---------------------------------------------------------
The members' meeting of Asian Century Quest Smaller Companies
Master Fund, Ltd. on March 4, 2014, was postponed until further
notice.

The company's liquidator is:

          Ogier
          c/o Desiree Jacob
          Telephone: (345) 815 1779
          Facsimile: (345) 949 9877


ASIAN CENTURY SMALLER: Members' Meeting Postponed Sine Die
----------------------------------------------------------
The members' meeting of Asian Century Quest Smaller Companies
Offshore Fund, Ltd. on March 4, 2014, was postponed until further
notice.

The company's liquidator is:

          Ogier
          c/o Desiree Jacob
          Telephone: (345) 815 1779
          Facsimile: (345) 949 9877


BCDX BRAZIL: Shareholders' Final Meeting Set for May 13
-------------------------------------------------------
The shareholders of BCDX Brazil Fund will hold their final meeting
on May 13, 2014, at 11:00 a.m., to receive the liquidator's report
on the company's wind-up proceedings and property disposal.

The company's liquidator is:

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


CAC CENTURY: Members' Final Meeting Set for June 4
--------------------------------------------------
The members of CAC Century Holdings Ltd will hold their final
meeting on June 4, 2014, at 9:00 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Ian D. Stokoe
          c/o Sarah Moxam
          Telephone: (345) 914 8634
          Facsimile: (345) 945 4237
          P.O. Box 258 Grand Cayman KY1-1104
          Cayman Islands


CIS EQUITY: Members' Final Meeting Set for May 20
-------------------------------------------------
The members of CIS Equity will hold their final meeting on May 20,
2014, to receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

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


HSBC MASTER: Shareholder to Receive Wind-Up Report on May 20
------------------------------------------------------------
The shareholder of HSBC Master India Fund, Ltd. will receive on
May 20, 2014, at 11:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

          Ogier
          c/o Madeleine Welham
          Telephone: (345) 815-1750
          Facsimile: (345) 949-9877


MAOMING FUND: Shareholders' Final Meeting Set for May 14
--------------------------------------------------------
The shareholders of Maoming Fund will hold their final meeting on
May 14, 2014, at 9:00 a.m., to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Julien Moulin
          c/o George Bashforth
          Telephone: +1 (345) 949 4900
          c/o Appleby Trust (Cayman) Ltd.
          75 Fort Street
          P.O. Box 1350, George Town
          Grand Cayman KY1-1108
          Cayman Islands


MLR CAPITAL: Shareholders' Final Meeting Set for May 16
-------------------------------------------------------
The shareholders of MLR Capital Offshore Fund, Ltd will hold their
final meeting on May 16, 2014, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          MLR Capital Management, LLC
          c/o Michael Layden
          49 Engert Avenue, #3
          Brooklyn, New York 11222
          United States of America
          Telephone: +1 (917) 450 9221
          e-mail: mlayden.mlr@gmail.com


PELOTON ABS: Members' Final Meeting Set for May 13
--------------------------------------------------
The members of Peloton ABS Fund will hold their final meeting on
May 13, 2014, at 11:00 a.m., to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidators are:

          Patrick Joseph Brazzill
          Elizabeth Anne Bingham
          c/o Maples and Calder, Attorneys-at-law
          P.O. Box 309, Ugland House
          Grand Cayman KY1-1104
          Cayman Islands


RESAT LIMITED: Members Receive Wind-Up Report
---------------------------------------------
The members of Resat Limited received on April 25, 2014, the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

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


=========
C H I L E
=========


LATAM AIRLINES: Group's 1Q14 Conference Call Set May 14
-------------------------------------------------------
LATAM Airlines Group S.A. will hold its First Quarter 2014 Results
Conference Call on Wednesday, May 14, 2014.

To access the call, please dial:

(866) 2706057 from within the U.S.

(617) 2138891 from outside the U.S.

Participant Passcode: 96626138

There will also be a webcast and an accompanying presentation
available at:

      http://edge.media-server.com/m/p/c2a4d4hz/lan/en

The Company's 1Q14 Results will be released May 13, 2014 after the
market close.

Headquartered in Santiago, Chile, LATAM Airlines Group S.A., --
http://www.latamairlinesgroup.net/-- together with its
subsidiaries, provides passenger and cargo air transportation
services in South America.  It provides domestic and international
passenger transport services to approximately 134 destinations in
22 countries and cargo services to approximately 143 destinations
in 27 countries.


LATAM AIRLINES: Posts Preliminary Monthly Statistics for March
--------------------------------------------------------------
LATAM Airlines Group S.A. and its subsidiaries, reported its
preliminary monthly traffic statistics for March 2014 compared to
March 2013.

System passenger traffic increased by 1.6% while capacity
decreased by 3.8%.  As a result, the Company's load factor for the
month increased 4.3 points to 81.7%.  International passenger
traffic accounted for approximately 53% of the month's total
passenger traffic.

Domestic passenger traffic in LATAM Airlines Group's Spanish
speaking operations (Chile, Argentina, Peru, Ecuador and Colombia)
rose 5.4%, as capacity increased 4.5%. As a consequence, the
domestic passenger load factor increased 0.7 points to 79.0%.

Domestic passenger traffic in Brazil increased by 6.5%, while
capacity decreased by 0.4%. As a consequence, the domestic Brazil
passenger load factor increased 5.1 points to 78.8%.

International passenger traffic decreased by 2.2%, while capacity
decreased by 8.1%.  Accordingly, the international passenger load
factor for the month increased 5.0 points to 84.4%.  International
traffic includes international operations of both LAN and TAM on
regional and long haul routes.

Cargo traffic for LATAM decreased 6.6% as capacity decreased 9.2%.
As a consequence, the cargo load factor increased 1.7 points to
61.8%.  The decrease in cargo capacity is a result of a decreased
availability in the bellies of passenger aircraft in addition to a
reduced freighter operation.  Cargo traffic decrease was driven by
weaker seasonal products from Latin America.

Headquartered in Santiago, Chile, LATAM Airlines Group S.A., --
http://www.latamairlinesgroup.net/-- together with its
subsidiaries, provides passenger and cargo air transportation
services in South America.  It provides domestic and international
passenger transport services to approximately 134 destinations in
22 countries and cargo services to approximately 143 destinations
in 27 countries.


LATAM AIRLINES: Fitch Affirms Issuer Default Rating at 'BB'
-----------------------------------------------------------
Fitch Ratings has affirmed the classification IDR (Issuer Default
Rating) foreign and local currency 'BB' of Latam Airlines Group SA
(LATAM), TAM SA (TAM) and TAM Linhas Aereas SA. Fitch also affirms
the classification of shares in LATAM local 'Level 2 (cl)', and
the classification of long-term national scale TAM and TAM Linhas
Aereas SA at 'A + (bra)'.

Fitch reviewed the Outlook for the classification of LATAM, TAM SA
and TAM Linhas Aereas SA from Stable to Negative.  The revision of
the Outlook reflects the high level of indebtedness of LATAM
versus global peers within the category of classification, as well
as the weak economic conditions in the region that will make it
more difficult for the company to reduce its level of debt as
quickly as expected.

Classifications LATAM and TAM and its subsidiaries take into
account the credit entailment between the two companies, which is
derived from the operational and strategic ties.  These links are
reflected in the existence of cross-guarantees and cross default
clauses related to finance purchases of ships for both companies.

Key Factors Of Qualification

Regional Leadership Position Market Incorporated
Fitch sees strong business position as LATAM sustainable in the
medium term based on the diversification of its business as well
as its extremely strong business position both within Latin
America and on international routes between this and North America
or Europe.  The International business segments, domestic
passengers Brazilian Spanish speaking countries and load segment
accounted for 39%, 30%, 14% and 14%, respectively, of total
revenues of the company in 2013.'s Ratings incorporate the
leadership position of the company in the domestic and
international markets of Brazil, also the volatility in operating
results related to these markets through the economic cycle.
Today, economic conditions in Brazil remain relatively weak.
LATAM also holds the leading position in the domestic markets of
Chile and Peru and is one of the major players in Colombia.

Adequate Liquidity
LATAM improved its liquidity during 2013, increasing its cash and
marketable securities from USD1, one billion at end-2012 to USD2,
6 billion at December 31, 2013. This level of cash and marketable
securities is equivalent to 19% income of the company in 2013.'s
strong improvement in the liquidity position of LATAM was
primarily the result of increased capital of USD1, 0 billion made
during 2013.  Additionally to the above, LATAM has committed lines
of credit unused by USD185 million. Expose the company's cash in
Venezuela and Argentina is approximately USD 163 million and USD
59 million respectively, representing so combined 10% of liquidity
and is not expected that this exposure increases during 2014.

High Debt Adjusted Gross
Fitch believes that the company's debt is high for the rating
category.  The indicator adjusted gross debt, measured as total
adjusted debt to EBITDAR was 6.1 times (x) for 2013, while the
ratio of net debt adjusted cash was 4.9 x, and its ratio of debt
to Adjusted FFO was 5.5 x. Income and EBITDAR of LATAM in 2013
were USD13, 3 billion and USD2, 2 billion, respectively, while its
EBITDAR margin grew to 16% from 12%. The adjusted total debt was
approximately USD12 LATAM, 8 billion dollars by the end of
December 2013.  This debt includes U.S. $ 9, 9 billion in debt and
balance USD3 billion in off-balance sheet obligations related to
operating leases with combined rental payments around USD441
million for 2013.

Limited Generation of Free Cash Flow

Capex plan LATAM remains relatively aggressive though has revised
downwards for 2014 to 2015 for USD1 billion.  These coupled with
weak macroeconomic conditions in the region previously projected
by Fitch, investments should limit FCF generation capacity of the
company during 2014 and 2015.  LATAM initiated a restructuring
plan fleet during 2013 with the intention to phase out the models
less efficient and reassign aircraft along its markets to better
optimize the use of its fleet.  Capex is expected to LATAM related
to acquisitions of vessels for 2014 and 2015 to reach levels of
USD738 million and USD968 million, respectively.  The total capex
of the company for the period-including spares, engines and other
items-should reach approximately USD2, 5 billion.  During 2013,
the free cash flow (FCF) of LATAM was negative and reached a value
of USD364 million, representing a margin FCF (FCF Ratio / Income)
2.7% negative.

Modest improvements to Null Projected 2014-2015
Fitch base case results in an improvement of FCF USD100 million
due to improved USD300 million in operating cash flow (CFFO). This
level of FCF would not be enough material to reduce debt
significantly in the absence of asset sales or issuance of
additional capital of the company. A key factor in the improvement
CFFO is a strong reduction of the outflow of working capital,
whereas flow is projected Generated from Operations (FFO) remains
relatively unchanged at around USD 1.4 billion. For 2014, Fitch
projects an increase in EBITDAR of LATAM to USD2, 3 billion from
USD2, 1 billion. It expects consolidated capacity LATAM remain
stable during 2014.

In 2014, LATAM plans to increase capacity in the international
segment between 0% and 2%; 0% in the domestic segment in Brazil;
between 6% and 8% in the Spanish-speaking countries; and an
increase of 0% to 2% in the load segment. At December 31, 2013,
the fleet totaled 339 aircraft LATAM (201 property), including 323
passengers and 16 dedicated cargo (10 owned).

The company maintains the flexibility to adjust the physical size
of its fleet whereas between 2014 and 2016, has 25 operating
leases that expire on its fleet of wide-body passenger (wide-
body), which can be completed at no cost.

Sensitivity Classification
classification Shares negative: Fitch would consider lowering the
ratings if not LATAM expecting its net debt / EBITDAR and / or
succeed in FGO adjusted debt to be reduced to around 4.5x in the
first half of 2016. A ratio of total debt / EBITDAR of 5.0x up
during this time period could also lead to negative actions
classification.

Positive actions classification: An improvement in the
classification is not foreseen in the short term. The Company
Outlook could be revised to stable if it achieves some of the
above objectives.

Fitch has taken the following rating actions:

LATAM Airlines Group SA:
- IDR (Long Term IDR) affirmed at 'BB';
- Classification of equity securities, ratified in First Class
Level 2 (cl).

TAM SA
- Foreign currency IDR affirmed at 'BB';
- Local currency IDR affirmed at 'BB';
- Classification of National scale long term affirmed at 'A +
(bra)'.

Tam Linhas Aereas SA
- Foreign currency IDR affirmed at 'BB';
- Local currency IDR affirmed at 'BB';
- Classification of long-term national scale rating affirmed at 'A
+ (bra)'.
Tam Capital Inc.
- Foreign currency IDR affirmed at 'BB';
- Local Currency IDR affirmed at 'BB';
- USD300 million senior Debt, due 2017, affirmed at 'BB'.

Tam Capital Inc. 2
- Foreign currency IDR affirmed at 'BB';
- Local currency IDR affirmed at 'BB';
- USD300 million senior Debt, due 2020, affirmed at 'BB'.

Tam Capital Inc. 3
- Foreign currency IDR affirmed at 'BB';
- Local Currency IDR affirmed at 'BB';
- USD500 million senior debt, due 2020, affirmed at 'BB'.

The Outlook is Stable to Negative amended.


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


DOMINICAN REPUBLIC: Free Trade Pact Brings Disadvantages
--------------------------------------------------------
Dominican Today reports that National Business Council (Conep)
President Manuel Diez listed several factors he affirms hinder his
sector's competitiveness and placed them at a disadvantage with
the implementation of the U.S.-Central America-Dominican Republic
free trade agreement (Cafta-Dr), which provides for 97% of the
products covered by the pact will enter the country duty free
starting  January 1, 2015.

Speaking at a Senate hearing to comply with the agreement's
provision to update, adjust, and articulate its legal framework,
the head of the Conep warned of the need to find solutions to his
sector's concerns, according to Dominican Today.

"We've identified several points that currently need to be
reformed in order to cut costs affecting competitiveness levels,"
the report quoted Mr. Diez as saying.

Mr. Diez, the report notes, said exports need to be promoted while
exporters need a fairer tax system; the electricity problems must
be solved and freight and passenger transport improved.

Mr. Diez also noted "disadvantages in terms of cost and access to
financing" and called for an overall facilitation of trade,
especially permits issued efficiently, the report relates.

In addition to the CONEP president, the hearing also included
statements by National Free Zone Association president Aquiles
Bermudez, and Industries Association president Ligia Bonetti, the
report adds.


=============
E C U A D O R
=============


ECUADOR: Said to Step Up Offers to Buy Back Defaulted Bonds
-----------------------------------------------------------
Nathan Gill and Katia Porzecanski at Bloomberg News report that
Ecuador is stepping up efforts to repurchase its defaulted bonds
and pave the way for a new foreign debt sale, offering creditors
more than it paid in a 2009 buyback, three people with knowledge
of the terms said.

Ecuador is approaching holders on a one-by-one basis with offers
to pay at least 50 cents on the dollar for the notes, according to
two of the people, who asked not to be identified because the
information is private, according to Bloomberg News.

In February, Bloomberg News notes, the government offered
creditors 40 cents on the dollar, according to another person who
wasn't authorized to talk about the offer.

Ecuador bought back more than 90 percent of its defaulted bonds in
2009 at 35 cents on the dollar, months after defaulting on $3.2
billion of securities, Bloomberg News discloses.

Faced with a swelling budget deficit, President Rafael Correa said
last month that he's looking to sell bonds to international
investors this year, the first time since the default, after
relying mostly on China for financing during the past several
years, Bloomberg News relates.

Retiring the securities still in creditors' hands -- about $120
million of face value as of March -- would help protect a new bond
sale from any possible legal wrangling stemming from the default,
according to Moody's Investors Service, Bloomberg News notes.

"It's certainly proactive and I think the markets will welcome the
transaction," Siobhan Morden, the head of Latin America fixed-
income strategy at Jefferies Group LLC, told Bloomberg News in a
telephone interview from New York.  "I don't think it necessarily
changes a history of serial default," Mr. Morden said, Bloomberg
News relays.

                         Bonds Rallying

The government's conversations with holdout creditors may have
helped push the value of the defaulted bonds up over the past
several months, Bloomberg News quoted Mr. Morden as saying.  The
price on the defaulted dollar-denominated bonds due 2030 has
surged 11 cents over the past month to 52.13 cents, according to
data compiled by Bloomberg.  Defaulted bonds that were due in 2012
have jumped 8.25 cents to 47.88 cents over the period.

The government has repurchased about $210 million of the debt
since the end of last year, Sarah Glendon, a Moody's analyst, said
April 14, Bloomberg News recalls.  The default was the country's
third on its foreign debt since the 1980s.

The South American country hasn't publicly disclosed how much of
the defaulted bonds remain in investors' hands and didn't respond
to information requests made through the Finance Ministry's press
office, Bloomberg News relays.

Correa, a 51-year-old former economics professor, called the bonds
"illegitimate" when he halted payments in 2008 after a commission
he formed the year before said the debt showed "serious signs of
illegality," Bloomberg News discloses.

The government kept making payments on bonds due in 2015, which
Correa helped structure during his time as finance minister in
2005.


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


MEXICO: Fitch Publishes 2013 Performance and Outlook
----------------------------------------------------
Fitch Ratings has published a special report entitled "Performance
2013 and Outlook for the Insurance Sector in Mexico."

The insurance sector reached a growth of 10% premium to the
closing of December 2013; partly benefited from the multi-renewal
of the policy of Petroleos Mexicanos (Pemex) in June 2013.
Discounting this effect, the sector's growth reached 8% on the
same date.  Fitch estimates that premiums will grow about 13% in
2014; time reflecting the strong demand for insurance as a result
of the expected economic recovery in 2014, and good prospects in
bancassurance products.

The combined ratio for the sector, excluding adjustments for
constitution of catastrophic reserves recorded a slight
improvement and became 104.5% 105.2% dic.13/dic.12 thanks to a
controlled both operating costs management and stable levels of
accidents, which accounted for 32.2% and 74.5% of earned premiums
retained, respectively.  Similarly, the sector benefited from the
absence of major catastrophes and increased prices in some lines
damage.  The combined ratio could record any impairment in 2014
due to initial costs of new regulation and possible catastrophic
less benign environment.

Most dynamic raw against the asset base was evidenced by a higher
level of operating leverage, measured as premiums written to
equity-which retained indicator stood at 1.6 x 1.4 x Dic.2013 in
December 2012.  A From 2015, Fitch expects further strengthening
capital levels and lower leverage ratios with the effective date
of the New Law of Insurance Institutions, which requires a process
of calculating risk-based capital.

Historically the frequency and severity of natural disasters in
the sector has been higher than the level recorded in other
markets.  While these disasters could affect to some extent the
technical results broadly recognize that Mexican insurers mitigate
its catastrophe exposure through adequate reinsurance recruitment
and accumulation of reserves, although it is important that these
protections remain conservative in time.

At the end of 2013, financial income generated by the investment
portfolio recorded a moderate decline, Dec.14 -7%, contrasted with
the fact that dynamic raw +10% +12.1% and reserves; was severely
affected by an environment of persistently low interest rates.  By
2014, the contribution of investment in industry profits continue
challenged by the relatively large investment position in equities
for some large insurers as well as the environment of low interest
rates.

The implementation of Solvency II will have a significant impact
on the capital requirements as well as internal processes and
platform for companies to comply with the new requirements and
information modeling.  Fitch anticipates that, in addition to the
possible consolidation that could encourage the market could also
address the new requirement optimizing their book of business
through increased use of reinsurance or through changes in the
risk profile of its assets among other options, to enable them to
minimize the increase in the capital required.


TV AZTECA: Posts Ps.2,541 Million in First Quarter 2014
-------------------------------------------------------
TV Azteca, S.A.B. de C.V. disclosed financial results for the
first quarter of 2014.

                     First quarter results

Net sales for the quarter were Ps.2,541 million, 5% above the
Ps.2,417 million for the same quarter of last year. Total costs
and expenses were Ps.2,013 million, compared to Ps.1,803 million
from the same period last year.

As a result, Azteca reported EBITDA of Ps.528 million, compared to
Ps.614 million from last year; EBITDA margin for the quarter was
21%. The company registered a net loss of Ps.178 million, compared
to a net profit of Ps.152 million for the same quarter of 2013.

A full text copy of the company's financial results is available
free at:

                      http://is.gd/sPswOb

Based in Mexico City, Mexico, TV Azteca, S.A.B. de C.V. --
http://www.tvazteca.com.mx--  produces Spanish-language
television programming. The company operates 2 national television
networks, Azteca 13 and Azteca 7, through approximately 321 owned
stations in Mexico; and Project 40, a cultural channel that
broadcasts newscasts, opinion, research, and debate.


TV AZTECA:  Fitch Affirms 'BB-' IDR; Outlook Stable
---------------------------------------------------
Fitch Ratings has affirmed TV Azteca, S.A.B. de CV's (TV Azteca)
Long-Term Foreign-Currency and Local-Currency Issuer Default
Ratings (IDR) at 'BB-' with a Stable Outlook. Fitch has also
affirmed the company's senior unsecured debt at 'BB-'.

Key Rating Drivers

TV Azteca's ratings reflect its business position as the second
largest TV broadcaster in Mexico, with an over 30% market share,
and one of the two largest Spanish-language contents producers in
the world. The ratings also reflect the company's moderate
financial leverage for the rating level, as well as its large cash
balance which fully supports its strategic investments. The
ratings also take into consideration the controlling ownership by
the Salinas family and track record of transactions with related
entities. The company's ratings are tempered by the increasing
competitive pressure from alternative advertisement platforms and
the potential new entrants to the market amid the industry
maturity, all of which have and will continue to erode its
operating margins and to increase leverage, and the lack of
revenue diversification.

Slow Growth Ahead: TV Azteca's mid- to long-term advertisement
revenue growth will become slow as the Mexican broadcasting
industry matures and other platforms, such as internet, continue
to attract advertisers. Although the over-the-air broadcasting
still remains the most effective advertising platform given the
high penetrations of TV in the Mexican households, its revenue
portion out of the total advertisement industry has gradually
declined to 53% from over 60% in the past. Fitch forecasts the
company's revenue growth in 2014 will be high, in the low-teens,
due to Brazil World Cup; however, the growth will become weaker
for the medium term in the absence of any special event. In 2013,
the company's sales contracted by 4% mainly as the government's
advertisement spending fell following the presidential election
year in 2012.

Negative Long-term Reform Impact: Fitch believes that the media
sector reform will be negative for TV Azteca in the long term as
the competitive pressure increases from the two new entrants. This
will add pressure to the company's revenue growth and operating
margins. However, Fitch does not foresee any material short-term
negative impact as TV Azteca was not declared as 'preponderant' by
the regulator and the unfavorable asymmetrical regulations were
mostly imposed on the largest broadcaster, Grupo Televisa. In
addition, the advertisers will prefer to buy advertisement slots
from TV Azteca than from the new broadcasters as its quality
contents producing ability remains intact. Fitch believes that it
will take significant time and resources for the new entrants to
be competitive against TV Azteca and Grupo Televisa. Therefore,
any significant loss in TV Azteca's market share is unlikely over
the medium term.

Margin Erosion: Fitch forecasts the company's EBITDA margin to
remain below 30% without any meaningful recovery in 2014 and 2015.
The contents cost, including both in-house production and
purchased rights, has been steadily increasing accounting for
almost 57% of the total sales in 2013 from less than 50% in 2011.
The cost structure is likely to be pressured should the new
entrants compete over production talents. Also, the increasing
revenue contribution from the lower margin Colombian telecom
operation will negatively impact the margins. In 2013, the
company's EBITDA margin, calculated by Fitch, fell to 29% from 33%
in 2012. The downward trend continued in the first quarter of
2014, the slowest quarter of the year, as the margin fell to 21%
from 25% a year ago.

Heightened but Moderate Leverage: TV Azteca's financial net
leverage is likely to increase towards 2x over the medium term due
to a high level of investment cash outflows related with the
digitalization, Colombian fiber optic project, as well as
investments into Azteca America. These investments will be funded
with the company's free cash flow generations and cash on hand
without any external financing. Fitch believes that the projected
increase in the leverage ratio is still in line with its rating
level. At Dec. 31, 2013, the company's financial net leverage,
measured by net debt to EBTIDA, was 1.8x, up from 0.8x in 2012,
due to the significant increase in the working capital, mainly
exhibition right purchases.

Positive Service/Geographical Diversification: TV Azteca will
benefit from cash flow diversification with its fiber optic
network projects in Colombia and Peru with the support from their
governments. The overseas expansion into the fixed-line telecom
operations can help mitigate the risk stemming from the increasing
competitive pressure in its domestic broadcasting operations to a
certain extent although the contribution will remain small for the
medium term. The company plans to increase the revenue portion
from this segment to 10% in the long term.

Good Liquidity: The company's liquidity profile is sound in light
of its MXN6 billion cash balance without any short-term debt as of
March 31, 2014.  The company does not face any debt maturity until
2018, which provides comfort even as the company uses its cash
balance to support the strategic investments in the short to
medium term. Fitch also expects the company to maintain robust
cash balances supporting its financial flexibility.

Rating Sensitivities

A Negative rating action could be considered in the case of any
material market share loss and margin erosion, as well as weaker
cash generation due to aggressive strategic investments and/or
shareholder returns. A negative rating action could also be
considered if the likelihood of a breach of the financial covenant
breach that limits the company's debt to EBITDA below 3.0x
increases. Also, any related party transactions that can lead to a
material deterioration in the company's financial profile can
result in a negative rating action.

Factors that could lead to a positive rating action include a
combination of the following: additional profitable business lines
contributing to improvement in cash flow generation, consistently
low leverage through the cycle, sustained increase in market share
that would lead to higher cash generation allowing the company to
withstand its large working capital requirement.


===========
P A N A M A
===========


PANAMA: Fitch Says Spending Control a Key Challenge for Next Gov't
------------------------------------------------------------------
Slowing growth will make reining in fiscal spending a key
challenge for the next Panamanian government, Fitch Ratings says.
"We expect broad economic policy continuity following Sunday's
elections, which saw Juan Carlos Varela win with approximately 39%
of the vote," Fitch said.  He called for a unity government and
pledged to fight inequality and corruption.  The runner-up
candidate from the ruling party trailed with 32%.

The outgoing administration has focused on leveraging the
expansion of the Panama Canal to position the country as a
regional logistics hub, resulting in strong, investment-led growth
that has largely protected the country from external shocks. In
light of this, the opposition candidates did not seek to
materially differentiate their economic policies from the
incumbent.

Vigorous growth has helped the country improve its credit profile
relative to ratings peers, but it has not led to significant
fiscal consolidation in recent years, with the country posting
persistently higher primary fiscal deficits.  Public debt
reduction has been driven largely by growth, and last year's
growth was the smallest since 2006 (apart from 2009's growth in
the aftermath of the global financial crisis), and was partly due
to the outgoing government's attempts to complete its investment
plan.

The completion of investment projects means we expect growth to
drop to a more sustainable 6% by 2015 (from an estimated 8.5% last
year).  A probable fall in public investment from 2013's record
high of 10% of GDP will create some fiscal space.  But as growth
slows, and with current spending likely to rise as some capital
projects are completed, improved spending control and
prioritization would boost fiscal consolidation, especially in the
absence of further tax-enhancing reforms.

The next government's fiscal intentions will become clearer with
the 2015 budget.  "We think tighter spending controls will be
needed to meet targets set under the current fiscal responsibility
law (FRL).  Persistent use of FRL waivers, for example to allow
the authorities to meet the cost of flood-related damage last year
while maintaining high investment, saw the non-financial public
sector deficit increase to 3% of GDP in 2013.  We expect public
debt to continue to fall, albeit slowly, in 2014-2015, but slowing
growth and further delays to new locks on the Canal are among the
downside risks to our projections," Fitch said

"We rate Panama 'BBB'/Stable," Fitch said.



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


DORAL FINANCIAL: Fitch Cuts Issuer Default Rating to 'C'
--------------------------------------------------------
Fitch Ratings has downgraded Doral Financial Corp.'s (DRL) Issuer
Default Rating (IDR) to 'C' from 'CCC' and Viability Rating (VR)
to 'c' from 'ccc', respectively.  Long-term IDRs of 'C' and VRs of
'c' indicate that default appears imminent or inevitable.

Key Rating Drivers - IDRs, VR and Senior Debt

DRL's downgrade follows the company's recent announcements that it
will not meet the minimum capital requirements outlined in the
company's current Consent Order and Written Agreements with
regulators.  Further, Fitch believes that DRL's liquidity position
may be pressured since the company also announced that the Federal
Deposit Insurance Corporation (FDIC) would no longer consider
granting certain waivers that allowed the company to continue the
use of brokered deposits for funding until DRL submits a revised
capital calculation plan.

On May 1, 2014, the company was advised by the FDIC and Office of
Financial Commissions (the local Puerto Rico bank regulator) that
it could no longer include some or all of certain tax receivables
due from the Government of Puerto Rico as part of its Tier 1
capital calculation. The tax receivables, which total $289
million, account for roughly 43% of DRL's current Tier 1 capital
($679 million).  Given the exclusion of these receivables, DRL is
no longer in compliance with its minimum regulatory capital
requirement.  The regulatory order requires Doral Bank to maintain
a minimum Leverage Ratio of 8%, Tier 1 RBC of 10% and Total RBC of
12%.

Furthermore, in the consent order, Doral Bank is not permitted to
accept, renew or rollover any brokered deposits unless a waiver is
granted by the FDIC.  The FDIC had previously granted such
waivers.  As of Dec. 31, 2013, DRL had a total of $1.4 billion in
brokered deposits accounting for 28% of total deposits and 18% of
total funding.

Given these changed circumstances, Fitch believes that it is
unlikely that DRL would be able to address the capital shortfall
in a timely manner.  Moreover, the inability to access the
brokered deposit market will further pressure DRL's weak funding
profile. DRL's ratings have incorporated many of the company's on-
going challenges such as longer-term strategic plans, geographic
and product concentration in Puerto Rico with a limited franchise,
high levels of non-performers, weak capital and liquidity profile.
This development further adds to these already significant issues.

Fitch had previously assigned a recovery rating to DRL's uninsured
deposits, in accordance with its 'Recovery Ratings for Financial
Institutions Criteria', however, in light of DRL's changed
circumstances, Fitch does not believe it has adequate information
on which to base a recovery analysis.  In the event information
becomes available, Fitch will assess potential recovery.

Key Rating Sensitivities - IDRs, Senior Debt and VR

DRL's ratings are the lowest rating category.  In previous ratings
actions Fitch noted that the company's ratings are highly
sensitive to compliance with its regulatory agreement.
Additionally, DRL's ratings remain sensitive to its ability to
access funding markets.

Key Rating Drivers and Sensitivities - Long- And Short-Term
Deposit Ratings

DRL's uninsured deposit ratings are rated one notch higher than
the company's IDR and senior unsecured debt because U.S. uninsured
deposits benefit from depositor preference. U.S. depositor
preference gives deposit liabilities superior recovery prospects
in the event of default.

The ratings of long and short-term deposits issued by DRL and its
subsidiary are primarily sensitive to any change in DRL's IDR.

Key Rating Drivers and Sensitivities - Support and Support Rating
Floors

DRL has a Support Rating of '5' and Support Rating Floor of 'NF'.
In Fitch's view, DRL is not systemically important and therefore,
Fitch believes the probability of support is unlikely. IDRs and
VRs do not incorporate any support.

Rating Drivers and Sensitivities - Holding Company

DRL has a bank holding company (BHC) structure with the bank as
the main subsidiary.  The subsidiary is considered core to the
parent holding company supporting equalized ratings between the
bank subsidiary and the BHC.  IDRs and VRs are equalized with
those of DRL's operating company and bank reflecting its role as
the bank holding company, which is mandated in the U.S. to act as
a source of strength for its bank subsidiaries.

Fitch has downgraded the following ratings:

Doral Financial Corporation

-- Long-term IDR to 'C' from 'CCC';
-- Viability rating to 'c' from 'ccc'.

Doral Bank

-- Long-term IDR to 'C' from 'CCC';
-- Long-term deposits to 'CC' from 'B-/RR3';
-- Viability rating to 'c' from 'ccc'.

Fitch has affirmed the following ratings:

Doral Financial Corporation

-- Preferred stock at 'C/RR6';
-- Senior debt at 'C/RR6';
-- Short-term IDR at 'C';
-- Support at '5';
-- Support Floor at 'NF';

Doral Bank

-- Short-term IDR at 'C';
-- Short-term deposit at 'C'.
-- Support at '5';
-- Support Floor at 'NF'.



                            ***********


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
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Chapman, Editors.

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