TCRLA_Public/140718.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, July 18, 2014, Vol. 15, No. 141


                            Headlines



A R G E N T I N A

ARGENTINA: High Court Ruling Isn't Win for NML Capital
CONVEXITY PESOS: Moody's Assigns B-bf Global Bond Fund Rating
FIDEICOMISO FINANCIERO: Moody's Rates ARS17.5MM Certs. 'Ba2.ar'


B A H A M A S

ULTRAPETROL (BAHAMAS): Southern Cross to Acquire Sipsa Interest


B O L I V I A

BANCO DE DESARROLLO: Moody's Affirms Ba3 Issuer & Debt Ratings
BANCO GANADERO: Moody's Rates Bs.35MM Sub. Debt 3rd Issuance 'B2'


B R A Z I L

BROOKFIELD INCORPORACOES: Moody's Confirms B1 Global Scale CFR
GOL LINHAS: Discloses Codeshare Agreement With Etihad
OI S.A.: Fitch Lowers IDR to 'BB+' & Removes from CreditWatch Neg.


C A Y M A N  I S L A N D S

BLACKLEAF HOLDINGS: Shareholders' Final Meeting Set for July 31
BOUTON LTD: Shareholder to Receive Wind-Up Report on July 23
CARILLON GREENFIELD: Shareholders' Final Meeting Set for Aug. 14
FALCON GROUP: S&P Puts 'B+' LT Counterparty Credit Rating
FMIM DYNAMIC: Creditors' Proofs of Debt Due Aug. 14

FMIM DYNAMIC MASTER: Creditors' Proofs of Debt Due Aug. 14
GPI LDC: Shareholder to Receive Wind-Up Report on July 29
M2M HELLAS: Shareholders' Final Meeting Set for July 28
MARATHON LEGACY: Creditors' Proofs of Debt Due Aug. 5
MEZZANINE CAPITAL: Members' Final Meeting Set for Aug. 4

SAPIC III: Creditors' Proofs of Debt Due Aug. 11


D O M I N I C A N   R E P U B L I C

XSTRATA PLC: Glencore Could Take Country to Court, Economist Warns


J A M A I C A

CIBONEY GROUP: Racks Up Higher Losses
* JAMAICA: World Bank Provides Funds to Enhance Public Services


M E X I C O

GRUPO POSADAS: Moody's Changes B2 CFR Outlook to Negative
GUASAVE: Moody's Affirms Ba3 Global Scale Local Currency Rating
SARE HOLDING: Moody's Cuts Issuer & Senior Debt Ratings to C/C.mx
UNIFIN FINANCIERA: S&P Retains BB- Rating Following $100MM Add-On


P U E R T O   R I C O

FERRETERIA Y AGROCENTRO: Case Summary & 20 Top Unsec. Creditors
UNIVERSITY OF PUERTO RICO: S&P Cuts Revenue Bond Rating to 'BB'


                            - - - - -


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A R G E N T I N A
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ARGENTINA: High Court Ruling Isn't Win for NML Capital
------------------------------------------------------
Law360 reported that the Republic of Argentina told the Ninth
Circuit that NML Capital Ltd. is overstating a U.S. Supreme Court
ruling allowing discovery for assets held by a foreign sovereign
debtor, arguing against a lower court ruling that the country has
to pay $1.4 billion to the hedge fund.  According to the Law360
report, Argentina had appealed the lower court decision arguing
that the discovery of assets sought by NML was improper because it
did not take into account assets protected by the Foreign
Sovereign Immunities Act, or FSIA.  NML moved for summary
affirmance in the Ninth Circuit after the Supreme Court denied
Argentina's petition for certiorari in the case in June, Law360
related.

Ken Parks, writing for The Wall Street Journal, reported that
Argentine officials meet again with a court appointed mediator in
New York as the country tries to negotiate a solution to a high
stakes dispute over unpaid debts, according to a senior government
official.  Economy Minister Axel Kicillof met for several hours
with Daniel Pollack, the lawyer that a U.S. judge named in June to
oversee negotiations between Argentina and a small group of hedge
funds that is suing to collect on defaulted Argentine bonds, the
Journal related.  According to the Journal, during the meeting,
Mr. Kicillof asked that U.S. District Court Thomas Griesa suspend
his ruling, which bars the country from paying investors who own
restructured bonds unless it also pays the hedge funds. Complying
with the judge's order is "impossible", the government said in a
statement after the meeting, the Journal further related.

Hugh Bronstein, writing for Reuters, reported that Argentina has
accused the U.S. judge overseeing its bond dispute of being biased
in favor of hedge funds that have sued the South American country
for full repayment of defaulted bonds.

The case is Republic of Argentina v. NML Capital Ltd. et al., case
number 12-17738, in the U.S. Court of of Appeals for the Ninth
Circuit.


CONVEXITY PESOS: Moody's Assigns B-bf Global Bond Fund Rating
-------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has
assigned bond fund ratings to Convexity Pesos Plus, a newly
launched fund that will be managed by local asset manager
Convexity SGFCI S.A..

The ratings assigned are as follows:

- Global scale bond fund rating: B-bf

- National scale bond fund rating: A-bf.ar

Ratings Rationale

"The fund ratings are based on Moody's expectation that Convexity
Pesos Pus will maintain an average of 30% of invested assets in
Treasury bills and bonds issued by the Argentinean Central Bank
and 20% in ABS securities with an average rating of B3/A1.ar-
A3.ar. The remainder of the fund's assets will be allocated to
similarly-rated corporate bonds, time deposits and municipal
securities. This portfolio will target a return on par with the
BADLAR interest rate with maximum annual volatility of 2% and an
average duration not exceeding one year," said Moody's lead
analyst Carlos de Nevares.

The new fund expects key shareholders to be institutional
investors such as local insurance companies which are clients of
affiliates of Convexity Securities SGFI S.A...

The principal methodology used in this rating was Moody's Revised
Bond Fund Rating Methodology and Symbols published in May 2013.

Convexity SGFCI S.A., the asset management arm of Advanced Capital
Securities, a local brokerage group, is an independent asset
manager in the Argentinean mutual fund Industry with a 0.2% market
share. As of June 2014, Convexity AM manages approximately AR$205
million or approximately $25.1 million.


FIDEICOMISO FINANCIERO: Moody's Rates ARS17.5MM Certs. 'Ba2.ar'
---------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo rates
Fideicomiso Financiero Supervielle Creditos 81, 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
considered 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 81", rated Aaa.ar (sf) (Argentine
National Scale) and B1 (sf) (Global Scale, Local Currency)

ARS 17,500,000 in Certificates of "Fideicomiso Financiero
Supervielle Creditos 81", rated Ba2.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 25,388 eligible personal loans denominated in
Argentine pesos, with a fixed interest rate, originated by Banco
Supervielle, in an aggregate amount of ARS 250,010,061.66.

These personal loans are granted to pensioners that receive their
monthly pensions from ANSES (Argentina's National Governmental
Agency of Social Security - Administraci¢n 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.

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/Baa1.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 2.17% expected loss for the Floating Rate
Debt Securities and 17.37% 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.

Moody's National Scale Credit 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 credit 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. For further information
on Moody's approach to national scale credit ratings, please refer
to Moody's Credit rating Methodology published in June 2014
entitled "Mapping Moody's National Scale Ratings to Global Scale
Ratings".


=============
B A H A M A S
=============


ULTRAPETROL (BAHAMAS): Southern Cross to Acquire Sipsa Interest
---------------------------------------------------------------
The major shareholders of Ultrapetrol (Bahamas) Limited
("Ultrapetrol" or the "Company) entered into a share purchase
agreement with respect to the sale of shares of Ultrapetrol and of
certain affiliates of the major shareholders between such
shareholders.

Under the agreement, Sparrow Capital Investments Ltd.,a subsidiary
of Southern Cross Latin America Private Equity Funds III and IV,
reached an agreement with Hazels (Bahamas) Investments Inc. and
Inversiones Los Avellanos S.A., each a subsidiary of SIPSA S.A to
purchase all of Hazels' and Los Avellanos' outstanding equity
interests in the Company, increasing Southern Cross' interest in
the Company from 67% to 85%.

Under the terms of the agreement, Sparrow will acquire from
Hazels, Los Avellanos, and certain entities affiliated with them,
the rights to 25,326,821 shares of common stock of the Company.
The price has been agreed at the equivalent of $4.00 per share of
Common Stock.  Upon completion of the transaction, the capital of
the Company will be comprised exclusively of single voting shares.

Ultrapetrol (Bahamas) Limited, headquartered in Nassau, Bahamas,
is a diverse international marine transportation company. The
company operates in three segments: River, Offshore Supply, and
Ocean. Last twelve months ended June 30, 2013, revenues totaled
$369 million.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
May 22, 2014, Standard & Poor's Ratings Services raised its
ratings on Ultrapetrol (Bahamas) Ltd., including the corporate
credit rating to 'B' from 'B-'.  The outlook is stable.


=============
B O L I V I A
=============


BANCO DE DESARROLLO: Moody's Affirms Ba3 Issuer & Debt Ratings
--------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo affirmed
Banco de Desarrollo Productivo S.A.M. (BDP)'s long- and short-term
global local currency issuer ratings at Ba3 and Not Prime
respectively. In addition, Moody's affirmed BDP's long-term global
local and foreign currency debt ratings at Ba3, corresponding to a
national scale rating of Aa1.bo

The outlook on all ratings is stable.

The following ratings of Banco de Desarrollo Productivo S.A.M.
were affirmed:

Global Long Term Local Currency Issuer Rating: Ba3

Global Short Term Local Currency Issuer Rating: Not Prime

National Scale Long Term Local Currency Issuer Rating: Aa1.bo

National Scale Short Term Local Currency Issuer Rating: BO-1

Global long term local and foreign currency debt MTN ratings:
(P)Ba3

National Scale long term local and foreign currency debt MTN
ratings: Aa1.bo

Global long term local currency debt rating: Ba3

National Scale long term local currency debt rating: Aa1.bo

Ratings Rationale

In affirming BDP's ratings, Moody's noted the alignment of the
bank's policies with those of its main shareholder, the
Plurinational State of Bolivia, to support the development of
microfinance institutions, as well as of small- and medium-size
enterprises. The bank's policy role leads to Moody's assessment of
very high dependence on and strong support from the government,
with resulting two-notch uplift to the bank's baseline credit
assessment (BCA) of b2. Although there is no explicit government
guarantee in place to support BDP's obligations, the government's
80% ownership control leads to BDP's issuer ratings being at the
same level as Bolivia's government bond ratings, or Ba3.

BDP's standalone rating incorporates its good asset quality that
derives from predominant on-lending operations to other banks in
the system, although this strategy leads to large loan exposures.
BDP's robust capitalization, however, supports further growth and
could withstand loan losses in case of stress. Relative to the
banking system, BDP's profitability is modest, a direct
consequence of the entity's social mission.

Moody's observes that BDP has made efforts to diversify its
funding mix away from multilateral institutions, by issuing bonds
in the domestic market. In part, this move helps reduce the
significant currency mismatch BDP faces as it borrows foreign
currency loans from multilateral institutions, while it lends in
local currency. Multilateral loans are extended through the
Ministry of Finance, and currently account for about half of the
bank's total funding. Moody's expect BDP to continue to access
market funds also as a consequence of regulatory changes
introduced by the financial services law, which now allows BDP to
take deposits from the public. A potential expansion of BDP's
footprint and franchise, however, while benefiting its funding
mix, is not without risks to its asset quality, controls and
earnings, in a very competitive banking environment.

Banco de Desarrollo Productivo S.A.M., headquartered in La Paz,
Bolivia, had $309 million in assets, $106 million in deposits, and
$66 million in shareholders' equity as of March 2014.

The principal methodology used in this rating was Global Banks
published in May 2013.

Moody's National Scale Credit 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 credit 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. For further information
on Moody's approach to national scale credit ratings, please refer
to Moody's Credit rating Methodology published in June 2014
entitled "Mapping Moody's National Scale Ratings to Global Scale
Ratings".


BANCO GANADERO: Moody's Rates Bs.35MM Sub. Debt 3rd Issuance 'B2'
-----------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has
assigned Banco Ganadero S.A. (Ganadero)'s Bs. 35 million
subordinated debt third issuance, a global local currency
subordinated debt rating of B2 and a national scale subordinated
debt rating of Aa3.bo.

The outlook on all ratings is stable.

The following ratings were assigned to Banco Ganadero:

Third issuance up to Bs. 35 million

Global Local Currency Subordinated Debt Rating: B2, stable outlook

Bolivia National Scale Local Currency Subordinated Debt Rating:
Aa3.bo

Ratings Rationale

Moody's explained that the B2 local currency subordinated debt
rating derives from Ganadero's b1 baseline credit assessment that
maps from its bank financial strength rating of E+ and takes into
account the seniority of the notes.

Ganadero's ratings reflect its well-established corporate and
commercial-oriented franchise based in Santa Cruz de la Sierra,
and growing housing finance operation, a business mix that
provides income diversification, good asset quality and access to
core deposit funding. The ratings however, are constrained by
Ganadero's geographical and loan concentrations, which expose its
asset quality and earnings to potential swings in the regional
economy, by the lower than banking system core capitalization
ratio and the complex regulatory environment that will affect
profitability for Bolivian banks.

Ganadero's focus in the corporate and SME segments yields relevant
non-interest income from foreign exchange trading and money
transfers. This operation represents an important earnings driver
enhancing the bank's profitability, which has been consistently
higher than the banking system's average since 2009.

As to funding, institutional and corporate funding obtained
through term deposits and demand accounts have supported
Ganadero's business development. With a total capitalization ratio
of 12.04%, and Tier 1 ratio at 8.78% as of March 2014, Ganadero's
capital stands lower that the banking system's average. However,
Moody's considers that current level of capitalization provides
adequate loss absorption capacity in stressed scenarios.

Banco Ganadero S.A. is located in Santa Cruz de la Sierra,
Bolivia, and had $988 million in assets, $785 million in deposits
and $54.7 million in equity as of March 2014.

The principal methodology used in this rating was Global Banks
published in May 2013.


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B R A Z I L
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BROOKFIELD INCORPORACOES: Moody's Confirms B1 Global Scale CFR
--------------------------------------------------------------
Moody's America Latina has confirmed the ratings assigned to
Brookfield Incorporacoes S.A. (Brookfield) and its unsecured
debentures at B1 on the global scale and Baa2.br on the Brazilian
national scale. The outlook for all the ratings is negative.

Ratings confirmed:

- Corporate Family Rating: B1 (global scale) and Baa2.br (national
scale)

- BRL300 million senior unsecured debentures due in 2015 and 2016
(4th issue): B1 and Baa2.br

- BRL300 million senior unsecured debentures due in 2015 and 2016
(3rd issue): B1 and Baa2.br

This rating action concludes the review for possible downgrade
that commenced on April 16, 2014.

Ratings Rationale

The confirmation of the B1/Baa2.br ratings reflects the recent
developments in Brookfield's liquidity following the execution of
an agreement of advance for future capital increase between the
company and its controlling shareholder in the amount of BRL500
million, for which the cash proceeds have been entirely
transferred to the company last June. Although the financial
support from the controlling shareholder is credit positive, the
ratings outlook is negative given the company's ongoing challenges
to improve profitability and deleverage its balance sheet on a
timely basis, amid evolving industry fundamentals and potential
changes in its governance structure.

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 indirect
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.

Brookfield reported negative gross margin of 1.7% for the twelve
months that ended on 31 March 2014 (vs. 8.4% in fiscal year-end
2012), while the leverage measured by total adjusted debt to book
capitalization ratio deteriorated to 65% (vs. 62% in fiscal year-
end 2012). The company's weak operating performance was mainly due
to the impact of cost overruns, land bank impairments, provisions
for future losses due to construction delays and softer than
expected sales performance. Those adjustments led to higher than
expected leverage and interest rates, which prevented an
anticipated improvement in the company's credit metrics.

On the other hand, the company's Free Cash Flow (FCF) generation
has been improving. Moody's calculates BRL325 million of negative
FCF, during the last twelve months ended March 31 2014 (vs. BRL861
billion negative FCF in fiscal year-end 2012). The cash burn
reduction reflects the successful transfer of BRL2.1 billion in
contracts to financial institutions (up 147% year-over-year), as
well as lower working capital pressures from the reduced launches
of BRL1.0 billion (down 65% year-over-year).

Moody's revised projections incorporate expectations that FCF will
continue to improve but remain negative in 2014 and become
positive only in 2015. The expected improvement in FCF generation
is supported by the high number of project deliveries and
relatively lower contract terminations over the next twelve
months.

The limited internal cash flow generation is tempered by an
adequate availability of project loans under the Sistema
Financeiro de Habitacao (SFH). According to the management there
are BRL2.4 billion undrawn committed facilities under the SFH that
puts the company in a comfortable position to meet more than 70%
of its ongoing project commitments.

The BRL500 million received from the shareholders last June
enhanced Brookfield's cash position of BRL564 million as reported
on 30 March 2014. As a result, the company's liquidity position is
manageable in 2014, but refinancing pressures remain high given
that the company still needs to address about BRL1.3 billion in
corporate debt maturing until mid 2015.

A ratings upgrade is unlikely in the near term, but Moody's will
consider an outlook stabilization should Brookfield successfully
execute its deleveraging and asset monetization strategy over the
next few quarters. An outlook stabilization would also require
more visibility over the company's capital structure and long term
business strategy post completion of its planned tender offer for
outstanding public shares.

On the other hand, Brookfield's ratings could be downgraded if the
company proves unable to improve its liquidity position during the
second half of this year to address its corporate debt maturing in
2015, or fails to indicate a clear deleveraging trend. 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 the 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 Mexico. For further information on Moody's approach to
national scale ratings, please refer to Moody's Rating Methodology
published in June 2014 entitled "Mapping Moody's National Scale
Ratings to Global Scale Ratings".

Headquartered in Rio de Janeiro, Brookfield Incorporacoes S.A.
(Brookfield) is the result from the combination of Brascan,
Company and MB Engenharia, all strong brand names with over 25
year experience in the Brazilian homebuilding market. Brookfield
develops, builds, and sells residential projects in virtually all
price segments, as well as, office buildings. The largest
shareholder is Brookfield Asset Management (Baa2/Stable) with an
indirect stake of 44.17% of the shares. The company currently has
91 projects under development to be delivered between 2014 and
2016, mainly in the states of Sao Paulo, Rio de Janeiro, Paran
and the mid-west region of Brazil, including the Federal District.
In the twelve months that ended 31 March 2014, Brookfield reported
net revenues of BRL2.8 billion (USD1.2 billion) and net losses of
BRL713 million (USD316 million).


GOL LINHAS: Discloses Codeshare Agreement With Etihad
-----------------------------------------------------
GOL Linhas Aereas Inteligentes S.A. has signed a codeshare
agreement with Etihad Airways, an airline headquartered in Abu
Dhabi, in the United Arab Emirates.  The agreement depends on
approval from ANAC (National Civil Aviation Agency) and CADE
(Brazil's antitrust authority).

The companies already have an interline agreement and the
expansion of the partnership through the codeshare agreement will
initially allow Etihad Airways to include its code on flights
operated by GOL, giving its customers a greater number of
connections for destinations in Brazil and South America.

"GOL has been investing in partnerships that are ensuring greater
benefits for our customers and strengthening the alliance with
Etihad will do precisely that," said Paulo Kakinoff, GOL's CEO.

Both companies will soon sign a Frequent Flyer Program (FFP)
agreement offering all their customers the benefits of their
respective mileage programs - GOL's Smiles and Etihad's Etihad
Guest.

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

                      *     *     *

As reported in the Troubled Company Reporter-Latin America on
March 21, 2014, Fitch Ratings has affirmed the ratings of Gol
Linhas Aereas Inteligentes S.A.'s Foreign and local currency long-
term Issuer Default Ratings (IDRs) at 'B-'.


OI S.A.: Fitch Lowers IDR to 'BB+' & Removes from CreditWatch Neg.
------------------------------------------------------------------
Fitch Ratings has downgraded Oi S.A.'s (Oi) long-term foreign and
local currency Issuer Default Ratings (IDR) and Portugal Telecom
SGPS's (PT) long-term IDR to 'BB+' from 'BBB-'.  Fitch has also
downgraded Oi's national long-term rating and national long-term
debentures to 'AA(bra)' from 'AA+(bra)'.  The Rating Outlook on
the IDRs and national long-term ratings is Stable.  Fitch has also
downgraded Oi's senior unsecured and secured debt, and the senior
unsecured notes issued by Portugal Telecom International Finance
BV to 'BB+' from 'BBB-'.  The Rating Watch Negative on all ratings
has been removed.

KEY RATING DRIVERS

High Risk Investment Strategy:

The downgrade follows Oi's announcement on July 16, 2014, that
PT's EUR847 million commercial paper (CP) investment issued by Rio
Forte Investments S.A., was not paid on the due date of July 15,
2014 and the recovery value is highly uncertain.  Based on the
assumption that Oi does not recover any cash from the defaulted
Rio Forte CP, net leverage for the merged entity will increase a
modest 0.2x-0.3x.  While the increase in net leverage is not alone
sufficient to warrant a ratings downgrade, PT's decision to invest
a significant amount of cash, close to 40% of its total cash and
equivalents at end-2013, into the debt security of a 10%
shareholder raises several concerns, and may indicate a higher
risk tolerance for its investments, and a more aggressive
management strategy that are not in line with an investment grade
category risk profile.

Despite this event, Fitch believes that the proposed merger
between Oi and PT will proceed given Oi and PT signed a new
agreement to slightly adjust the economics of the merger agreement
by which PT will transfer Oi's shares to Oi in the amount
equivalent to the face value of the CP.  In return, Oi will
transfer the CP to PT, with an option for PT to purchase back the
shares.  Further, the merger process is substantially complete
with Oi already completing its capital increase, PT's operating
assets have been transferred to Oi, Oi has guaranteed for PT's
debt, and approvals by the shareholders and the regulatory bodies
for the merger have been received.

Weak Financial Profile:

The downgrade primarily reflects the financial profile of the
post-merger entity between Oi and PT that is not able to initially
support an investment grade rating given the operational
challenges faced in both Brazil and Portugal.  Further, any
material or immediate improvement in the financial profiles of the
pro forma merged entity may prove challenging despite the
management's intention to delever.  Due to the forecast negative
free cash flow (FCF), net leverage of the merged entity is likely
to hover around 4.0x in the short to medium term and that the
merger synergy may not be strong enough to curb weakening
operating trends.

Domestic Pressure Ongoing:

For Oi, profitability erosion was evident in 2013 due to the
competitive pressure in the Brazil telecom market with its
recurring EBITDA margin falling to 28.5% from 31.5% in 2012.  In
addition, any meaningful deleveraging in the short term is
unlikely based on Fitch's expectation of negative FCF generation
in 2014 due to high capex, other investment cash outflows
including judicial deposits, and falling margins.  The company has
taken on a series of asset disposals to raise cash since late 2012
but the impact on its net debt has been small.

While PT's domestic businesses performed in line with Fitch's 2013
expectations, financial pressures remain - Portuguese EBITDA was
down by 9.1%.  The company's residential fixed-line operations
perform more strongly than most European incumbent businesses,
benefiting from an early investment in fibre, and TV and bundled
services that have proven attractive and popular with consumers.
Its mobile and enterprise divisions nonetheless remain under
pressure and further negative trends are expected.

Merger Synergies:

Given the different operational geographies, operational
integration that could lead to an immediate improvement of the
competitive positions of Oi and PT in their respective markets
will prove challenging.  Positively, the merged entity's credit
profile should benefit from increased scale with an over-100
million subscriber base and geographic diversification of cash
flows, as well as some merger synergies in terms of cost savings
and sharing of best practices over the medium to long term.  In
addition, the rights issue in May 2014, of which over BRL3 billion
could be used for deleveraging, will support its high capex plans
in 2014 and 2015.

The merger will also substantially improve the new company's
corporate governance structure by eliminating Oi's current complex
shareholding structure and restructuring it with one class of
shares of one listed entity, Telemar (Corpco), with same voting
rights and dividends.

The company has disclosed that it expects to achieve BRL5.5
billion of synergy on a net-present-value basis, of which the
majority should come from the improved efficiency of its
operations.  In addition, the company expects to gain some fiscal
benefits, mainly tax credits, from the merger, although these
benefits could prove to be one-off items and eventually be
exhausted.

RATING SENSITIVITIES

Fitch expects the merged entity to be able to generate positive
FCF and improve leverage during 2016 and onward.  A further
downgrade of the ratings could occur if the net leverage ratio
remains above 4.0x over the medium to long term and in the absence
of any meaningful improvement in key operating metrics.

While any positive rating action is unlikely at this time, Fitch
would consider a positive rating action should the company's net
leverage improve to below 3.5x along with improvements in key
operating metrics on a sustained basis.


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


BLACKLEAF HOLDINGS: Shareholders' Final Meeting Set for July 31
---------------------------------------------------------------
The shareholders of Blackleaf Holdings Limited will hold their
final meeting on July 31, 2014, to receive the liquidator's report
on the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Citron 2004 Limited
          Telephone: + 44 1534 282276
          Facsimile: + 44 1534 282400
          c/o Clifton House, 75 Fort Street
          P.O. Box 1350 Grand Cayman KY1-1108
          Cayman Islands


BOUTON LTD: Shareholder to Receive Wind-Up Report on July 23
------------------------------------------------------------
The shareholder of Bouton Ltd. will receive on July 23, 2014, at
11:10 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Ogier
          c/o Justin Savage
          Telephone: (345) 815 1816
          Facsimile: (345) 949-9877


CARILLON GREENFIELD: Shareholders' Final Meeting Set for Aug. 14
----------------------------------------------------------------
The shareholders of Carillon Greenfield SPC will hold their final
meeting on Aug. 14, 2014, at 4:00 p.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

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


FALCON GROUP: S&P Puts 'B+' LT Counterparty Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its 'B+'
long-term and 'B' short-term counterparty credit ratings to Falcon
Group Holdings (Cayman) Ltd. (Falcon), a nonbank trade finance
provider incorporated in the Cayman Islands.  The outlook is
stable.

"Our ratings on Falcon reflect our view of its focused business
profile as a niche player in the large trade finance market.  We
acknowledge, however, that it has established good relationships
with clients and with the financial institutions and other
counterparties that hedge and fund its transactions.  The ratings
also incorporate our view that its leverage and debt-servicing
capacity, by our metrics, will likely be consistent with the
current rating level, based on the proposed financing strategy.
The ratings are supported by our view that Falcon will likely
continue to deliver relatively predictable recurring earnings with
low credit losses.  We see no close peers to Falcon among our
current rated universe. We principally compare it with other rated
finance companies, particularly in the U.K. and U.S.," S&P said

Falcon is a nonoperational intermediate holding company.  S&P's
ratings on Falcon reflect the 'b+' group credit profile (GCP),
which is its view of the creditworthiness of the consolidated
group.  S&P do not believe there are any material barriers to cash
flows from the operating subsidiaries to Falcon.  S&P therefore do
not notch down the ratings on Falcon from its view of the GCP.

Founded in 1994, Falcon currently conducts business primarily in
the Middle East and Asia.  Although its business model does not
require it to be regulated, it voluntarily maintains a regulated
subsidiary in Dubai that arranges and may advise on certain
transactions.  Falcon specializes in financing corporate clients
through short-term transactions that are generally too bespoke or
too small to be a focus for many banks.  It expanded relatively
quickly during the global financial crisis as bank competitors
faced capital and funding constraints.  The ongoing strengthening
of bank regulation may offer Falcon continued growth
opportunities.  Nevertheless, with $2.4 billion of transactions
originated during the financial year ending Jan. 31, 2014, S&P
views it as a niche player in the global trade finance market.

Falcon has strengthened its corporate governance and internal
control functions in recent years, and S&P considers that further
enhancements would be warranted as it expands further.  S&P views
"key man" risk as a rating factor since the founder of the company
is the sole shareholder and executive chairman, but it considers
that it is partly mitigated by the experienced personnel in other
senior positions.

S&P believes that Falcon has a disciplined underwriting process,
and it additionally hedges the vast majority of the credit risk on
its transactions with investment-grade banks and other hedging
counterparties.  As a result, on the $12 billion of transactions
it has originated in its 20-year history, Falcon reports that it
has incurred about $55 million of defaults but just $1 million of
net losses (after recoveries).  This strong asset quality record
is a supporting factor in our view of Falcon's debt-servicing
capacity.

Currently, Falcon mostly funds its transactions through a panel of
financial institutions shortly after origination.  However, S&P
understands from the company that it is contemplating a benchmark
term debt issue to fund a diversified on-balance-sheet asset
portfolio that may subsequently be refinanced through other means,
such as a securitization program.  This adjustment in the funding
strategy would cause Falcon's balance sheet to expand from
historical levels.

Falcon currently has no outstanding nontransactional debt and its
earnings and balance sheet metrics are consequently strong.  S&P
has reflected the potential change in financing strategy in its
financial projections, and the ratings partly anticipate the
leverage and interest coverage levels that might arise.  For
example, a $250 million term debt issue would be 2.1x Falcon's
reported tangible equity as of Jan. 31, 2014, which S&P views as
an adequate leverage multiple at this rating level.  If the issue
had an interest rate of 8%, for example, Falcon's EBITDA in the
financial year ending Jan. 31, 2014 would cover the annual cash
interest expense by 2.7x, which would compare satisfactorily with
most rated finance companies.

The stable outlook reflects S&P's expectation that Falcon will
maintain a solid earnings performance and a controlled expansion
strategy, and that it will likely operate with leverage and
interest coverage metrics that are consistent with the current
rating level.  It also assumes that the company will continue to
enhance its corporate governance and internal control functions as
it grows.

S&P could lower the ratings if it sees evidence of a marked
deterioration in credit losses, risk appetite, or competitive
position.  S&P could also lower the ratings if the ratio of debt
to tangible equity should rise above 2.5x as a result of the
potential change in financing strategy.

S&P could raise the ratings if Falcon executes its growth plan
successfully, maintains strong asset quality, and strengthens its
business risk profile, including its corporate governance.  A
positive rating action could also arise if Falcon does not proceed
with the contemplated term debt transaction, or if the issue is
significantly smaller than S&P has assumed.


FMIM DYNAMIC: Creditors' Proofs of Debt Due Aug. 14
---------------------------------------------------
The creditors of FMIM Dynamic Macro Fund Ltd. are required to file
their proofs of debt by Aug. 14, 2014, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on June 17, 2014.

The company's liquidator is:

          KRyS Global
          Governors Square, Building 6, 2nd Floor
          23 Lime Tree Bay Avenue
          P.O. Box 31237 Grand Cayman KY1-1205
          c/o Christopher Smith
          Telephone: (345) 947 4700


FMIM DYNAMIC MASTER: Creditors' Proofs of Debt Due Aug. 14
----------------------------------------------------------
The creditors of FMIM Dynamic Macro Master Fund Ltd. are required
to file their proofs of debt by Aug. 14, 2014, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on June 17, 2014.

The company's liquidator is:

          KRyS Global
          Governors Square, Building 6, 2nd Floor
          23 Lime Tree Bay Avenue
          P.O. Box 31237 Grand Cayman KY1-1205
          c/o Christopher Smith
          Telephone: (345) 947 4700


GPI LDC: Shareholder to Receive Wind-Up Report on July 29
---------------------------------------------------------
The shareholder of GPI LDC will receive on July 29, 2014, at
9:00 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

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


M2M HELLAS: Shareholders' Final Meeting Set for July 28
-------------------------------------------------------
The shareholders of M2M Hellas Limited will hold their final
meeting on July 28, 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:

          Russell Homer
          c/o Tanya Armstrong
          Telephone: (345) 946-0820
          Facsimile: (345) 946-0864
          P.O. Box 2499, George Town, KY1-1104 Grand Cayman
          Cayman Islands


MARATHON LEGACY: Creditors' Proofs of Debt Due Aug. 5
-----------------------------------------------------
The creditors of Marathon Legacy Securities Public-Private
Investment Fund Ltd. are required to file their proofs of debt by
Aug. 5, 2014, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on June 10, 2014.

The company's liquidator is:

          Ogier
          c/o Joanne Huckle
          Telephone: 345 949 9876
          Facsimile: (345) 949-9877
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9007
          Cayman Islands


MEZZANINE CAPITAL: Members' Final Meeting Set for Aug. 4
--------------------------------------------------------
The members of Mezzanine Capital Corporation Limited will hold
their final meeting on Aug. 4, 2014, at 10:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          David A.K. Walker
          c/o Paul Anderton/ Jodi Jones
          Telephone: (345) 914 8694
          Facsimile: (345) 945 4237
          P.O. Box 258 Grand Cayman KY1-1104
          Cayman Islands


SAPIC III: Creditors' Proofs of Debt Due Aug. 11
------------------------------------------------
The creditors of SAPIC III JPY Open Reference Fund Limited are
required to file their proofs of debt by Aug. 11, 2014, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on June 20, 2014.

The company's liquidator is:

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



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


XSTRATA PLC: Glencore Could Take Country to Court, Economist Warns
------------------------------------------------------------------
The Dominican Today reports that Economist Bernardo Vega warned
that Glencore Falcondo's weak defense to attacks from the Congress
and society over Loma Miranda reveals its future intent to sue
Dominican Republic in international arbitration cours.

"They could make more with a lawsuit abroad that what they can
produce here with mining," said the also former Dominican envoy to
Washington, according to The Dominican Today.

The report notes that Mr. Vega cautioned the government against
pushing Falcondo's planned mine in haste, "because in the same way
we lost in court to the contractors of two major highways, the
case of Falcondo appears to be headed on the same path."

                          Divided Church

Mr. Vega noted however, that the country's Catholic Church is
divided on topics of the environment.  "It's odd that while a
bishop in the south region leads the demand to build a road across
the Central Mountains, the one in La Vega heads the war against
Falcondo," the report quoted Mr. Vega as saying.

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

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

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


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


CIBONEY GROUP: Racks Up Higher Losses
-------------------------------------
RJR News reports that Ciboney Group racked up higher losses during
its financial year ended May 31.

The struggling hotel operator suffered an $8.7 million loss, up
from a $3.2 million loss a year ago, according to RJR News.

During the twelve months, Ciboney earned income of $584,000,
versus $1.1 million in 2013, the report relates.


* JAMAICA: World Bank Provides Funds to Enhance Public Services
---------------------------------------------------------------
Caribbean360.com reports that the World Bank said Jamaicans will
benefit from improved service delivery and enhanced business
climate as a result of a US$37 million project for public sector
transformation.

The Washington-based financial institution said that the project
will improve customs administration and standardization, and
modernize the public sector by strengthening government capacity
and effectiveness in service delivery, according to
Caribbean360.com.

"Together with the Jamaican government and development partners,
we are working to help drive necessary reforms that will increase
efficiency and maximize the use of available resources to create a
more vibrant business environment and boost the economy," the
report quoted Sophie Sirtaine, World Bank Country Director for the
Caribbean, as saying.

The report notes that Ms. Sirtaine said the Strategic Public
Sector Transformation project will specifically strengthen the
Public Investment Management System and improve monitoring through
citizens' participation.

It will also implement results-based budgeting to make more
efficient and strategic allocation of resources for public
investments, roll out new standard operating procedures for
customs to reduce the time and lower transaction costs for trading
internationally, the report relates.

Additionally, the report discloses, Ms. Sirtaine said the project
will strengthen the Bureau of Standards to provide improved
services to the trading community.

"Without public sector reform, we cannot effectively create the
vibrant business environment needed to expand our economy and
provide real opportunities for jobs and investment to secure our
future," said Jamaica's Minister of Finance, Dr. Peter Phillips,
the report relays.

As Jamaica recovers from the effects of the 2008 global crisis,
the World Bank said the government has also reaffirmed its
commitment to tackle some of the key public sector challenges, the
report notes.

The bank said the project builds on ongoing efforts in public
financial management and customs administration supported by other
grants from Canada and the United Kingdom Department for
International Development (DFID), the report adds.


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


GRUPO POSADAS: Moody's Changes B2 CFR Outlook to Negative
---------------------------------------------------------
Moody's Investors Service changed to negative from stable the
outlook on Grupo Posadas, S.A.B. de C.V.'s (Posadas) B2 corporate
family rating and senior unsecured debt ratings.

Outlook Actions:

Issuer: Grupo Posadas, S.A.B. de C.V.

Outlook, Changed To Negative From Stable

Affirmations:

Issuer: Grupo Posadas, S.A.B. de C.V.

Corporate Family Rating, Affirmed B2

Senior Unsecured Regular Bond/Debenture Jan 15, 2015, Affirmed B2

Senior Unsecured Regular Bond/Debenture Nov 30, 2017, Affirmed B2

Senior Unsecured Regular Bond/Debenture (add-on) Nov 30, 2017,
Affirmed B2

Ratings Rationale

The change in outlook was prompted by Posadas' weaker than
expected credit metrics year-to-date, mainly due to the lower than
anticipated EBITDA resulting from the sale of 14 hotels to the
REIT Fibrahotel in the first half of 2013. Also affecting the
company's operation is the increase in taxes in the context of the
Mexican fiscal reform. Particularly affecting the lodging industry
are the higher income taxes and boarder region VAT that starting
2014, have reduced consumers' purchasing power. To a lesser
extent, Posadas' operations have also been impacted by the weaker
than anticipated economic environment in both Mexico and the U.S.
as well as by accounting changes in Mexico, mainly related with
fiscal consolidation and REITs. As a result of the aforementioned
events, adjusted Debt / EBITDA ratio remained above 5.5x and as of
March 30, 2014 it has peaked at 6.1x.

Posadas' B2 rating reflects its high leverage, small operating
scale relative to global industry peers, and low geographic
diversification as it operates almost entirely in Mexico. The
rating also considers our view that future growth could be
affected by a subdued global economic environment and financial
constraints to its investment program. The company's leading
position, brand equity and nationwide coverage in Mexico balance
the rating. Also supporting Posadas' B2 rating is its segment
diversification across different hotel classes, varying business
models and service business growth.

The hotels sale to Fibrahotel is part of the company's recent
measures to reduce leverage. This strategy started in 2012, when
the company sold its South American operation to Accor. Posadas
debt reduction strategy also included changes in their asset
management - the hotels sold to Fibrahotel will continue to be
operated by Posadas - and the sale and lease of its headquarters.
The measures have resulted in a more than 30% debt reduction when
compared with 2011 reported debt. Liquidity has also improved with
a more manageable maturity profile, stronger capital structure and
a MXN 1,390 million cash position as of the 1Q14. Nevertheless, we
note that a large part of the proceeds from the divestitures will
not be used for debt reduction but to partly fund its capital
expenditure program. As a consequence, we expect credit metrics to
remain weaker than anticipated for the next 12 -- 18 months, with
leverage above 5.0x until at least the end of 2015.

Posadas' investment plan includes around MXN 528 million related
with the refurbishment of owned or leased hotels and MXN 428
million to turn owned properties into the all inclusive format
under its Vacation Club (FAVC) segment. We view such initiatives
as positive in the long run in the sense they will support the
maintenance of the company's competitive position and represent
more diversification into the fast growing (in terms of revenue
per available room - RevPar) Vacation Club business.

In our view, the aforementioned investments could pressure
Posadas' liquidity; overall, we expect 2014 capex to range between
MXN 600 million and MXN 1,200 million. Currently, the company's
liquidity is adequate and, as of March 31, 2014, the total debt at
around MXN 4.6 billion (USD 362 million) was solely comprised of
senior unsecured notes maturing in 2015 and 2017. The next debt
amortization is scheduled to January 2015, amounting to MXN 670
million (USD 51 million). Posadas internal sources of liquidity
are comprised of its cash position of MXN 1,392 million as of the
end of the 1Q14 and cash from operations of MXN 462 million for
the last twelve months ended in March of 2014. Moreover,
alternative sources of liquidity would include around USD 60
million fully available under factoring facilities to discount
receivables related to the vacation club (FAVC) and the around USD
30 million payment still pending to be received from the sale of
the South American division and the company's headquarters. The
company is also refinancing committed bank lines amounting MXN 550
million (USD 40 million).

The outlook could stabilize as a result of the ramp up of Posadas
current projects and a consequent improvement in credit profile,
particularly with a visible trend of deleveraging towards adjusted
Debt / EBITDA metrics around 5.0x. In order for the outlook to
stabilize, liquidity should also remain adequate with internal and
external resources being enough to cover upcoming debt maturities.

Ratings could be downgraded if Posadas' liquidity deteriorates or
if Moody's adjusted debt/EBITDA remains above 5.0 times with no
clear de-lever trend over the next few quarters.

Although not envisioned in the medium term, positive ratings
pressure would result from Posadas maintaining adequate liquidity
and improving adjusted Debt/EBITDA below 4.5 times and
EBIT/Interest above 2.0 times, both on a sustainable basis.

The principal methodology used in this rating was " Global Lodging
& Cruise Industry Rating Methodology" published in December 2010.

Grupo Posadas, S.A.B. de C.V. (Posadas), headquartered in Mexico
City, is a leading hotel operator in Mexico. Posadas owns, leases
and manages 115 hotels with 19,623 rooms in well located urban and
costal destinations throughout Mexico and a single hotel in Texas.
It operates key 5- and 4- star Fiesta Americana and Fiesta Inn
business-class formats, a 3-star format (One Hotels), the luxury
class Live Aqua, and the Fiesta Americana Vacation Club timeshare
business. For the last twelve months ended March 31, 2014, Posadas
reported revenues of MXN5,633 million excluding asset sales.


GUASAVE: Moody's Affirms Ba3 Global Scale Local Currency Rating
---------------------------------------------------------------
Moody's de Mexico affirmed the Ba3 (global scale, local currency)
and Baa1.mx (Mexico national scale) ratings of the municipality of
Guasave. At the same time, Moody's revised Guasave's outlook to
stable from negative.

Ratings Rationale

The municipality of Guasave managed to redress its finances in
2013 and posted positive operating results equivalent to 2% of
operating revenues. The municipality's consolidated results also
improved in 2013 with Guasave posting its first cash financing
surplus in the last 4 years. The stable outlook reflects the
municipality's capacity to revert the deterioration seen in 2012
and Moody's view that Guasave is somehow better positioned to
maintain a stable trend within its rating category in the near to
medium term.

In 2013, Guasave improved its liquidity position to -1.3% of total
expenditures from -9.6% in 2013. The municipality's liquidity
position remains tight but above the median Ba3 rated peers.

Debt levels as a percentage of operating revenues are expected to
remain stable at around 42% of operating revenues. Debt service
costs are estimated to reach a maximum of 4% of total revenues in
2014, a low level.

The municipal water company (JUMAPAG) exerted significant
expenditure pressures on the municipality in 2012, however Moody's
do not expect at this stage that JUMAPAG will require similar
support in the near future.

What Could Move The Ratings Up/Down

Further improvements in the collection of own source revenues and
containing a still rigid cost structure could exert upward
pressure on the ratings.

A return to operating and financial deficits that result in higher
borrowing needs and weaken Guasave's liquidity 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 municipality of Guasave rating is between 1 of January
2009 and 31 December 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 Mexico. 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".


SARE HOLDING: Moody's Cuts Issuer & Senior Debt Ratings to C/C.mx
-----------------------------------------------------------------
Moody's de Mexico downgraded Sare Holding, S.A.B. de C.V.'s long
term issuer rating and its senior unsecured debt ratings to C /
C.mx from Caa1 / Caa1.mx.

The following ratings were downgraded:

Downgrades:

Issuer: Sare Holding, S.A.B. de C.V.

Issuer Rating, Downgraded to C from Caa1

Issuer Rating, Downgraded to C.mx from Caa1.mx;

Senior Unsecured Regular Bond/Debenture Dec 30, 2016 (SARE 08),
Downgraded to C from Caa1;

Senior Unsecured Regular Bond/Debenture Dec 30, 2016 (SARE 08-2),
Downgraded to C from Caa1;

Senior Unsecured Regular Bond/Debenture Dec 30, 2016 (SARE 08),
Downgraded to C.mx from Caa1.mx;

Senior Unsecured Regular Bond/Debenture Dec 30, 2016 (SARE 08-2),
Downgraded to C.mx from Caa1.mx;

Outlook Actions:

Issuer: Sare Holding, S.A.B. de C.V.

Outlook, Changed To No Outlook From Negative

Ratings Rationale

The ratings downgrade was prompted by the conclusion of Sare's
debt exchange offer for its MXN 315 million 2008 notes, which
represented a 70% loss to the company's bondholders. The offer
involved its outstanding local notes, SARE 08 and SARE 08-2, and
was completed with approximately 77% of the total outstanding
amount being exchanged. Moody's viewed the transaction as a
distressed exchange, as it resulted in a diminished financial
obligation relative to the original obligation and should allow
Sare to avoid a payment default in the future. The loss incurred
by the bondholders is in line with the C rating assigned.

Prior to rating action, Sare's ratings outlook was negative,
driven by its limited liquidity and cash generation, as well as by
the uncertainties related to the company's operating performance
and its development capabilities.

Subsequent to rating actions, Moody's will withdraw all the
ratings of Sare because of the recent distressed exchange of the
rated notes and Sare's overall debt restructuring process.

Sare Holding, S.A.B de C.V, based in Mexico City, Mexico, is a
fully integrated, diversified homebuilder engaged in the
development, construction, marketing, consulting, and sales of
affordable, middle- and upper-income housing developments in
Mexico. Sare was founded in 1967 and first developed single-family
homes and office buildings in 1977. As of March 31, 2014, Moody's
estimates Sare's sales excluding assets sold at around MXN 96
million.

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

The period of time covered in the financial information used to
determine Sare Holding, S.AB. de C.V.'s rating is between December
31, 2009 and March 31, 2014. (source: Mexican Stock Exchange).

Moody's National Scale Credit 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 credit 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. For further information
on Moody's approach to national scale credit ratings, please refer
to Moody's Credit rating Methodology published in October 2012
entitled "Mapping Moody's National Scale Credit Ratings to Global
Scale Credit Ratings".


UNIFIN FINANCIERA: S&P Retains BB- Rating Following $100MM Add-On
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that its 'BB-' issue-level
rating on Unifin Financiera, S.A.P.I. de C.V. SOFOM, E.N.R.'s
(Unifin; global scale: BB-/Stable/--; national scale: mxA-
/Stable/mxA-2) senior unsecured notes due 2019 remains unchanged
following the $100 million add-on.  The outstanding principal
totals $400 million.  In S&P's opinion, the increase will boost
Unifin's financial position because the company will improve its
debt maturity profile and further ease short-term refinancing
pressures.

With this issuance, funding mix will consist of a 77% market debt
and 23% banking debt.  But S&P believes that Unifin's market debt
won't represent more than 70% of its total funding structure in
the next few quarters and that it won't issue short-term market
debt.

The 'BB-' rating on the $400 million notes is the same as the
long-term global scale issuer credit rating on Unifin, and
indicates that the notes will rank equally in right of payment
with all of the company's existing and future senior unsecured
notes.  S&P expects the company to use the proceeds to repay total
market debt of about $154 million; securitization by $25.5 million
and $116.5 million in bank credit lines.  Unifin will use any
remaining proceeds for general corporate purposes, including loan
portfolio.  The rating on the notes incorporates a full cross-
currency swap on the principal and interest through the notes'
term.

RATINGS LIST

Unifin Financiera, S.A.P.I. de C.V. SOFOM, E.N.R.'s
Issuer credit rating
Global scale                                BB-/Stable/--
National scale                              mxA-/Stable/mxA-2
Sr. unsec. notes                             BB-


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


FERRETERIA Y AGROCENTRO: Case Summary & 20 Top Unsec. Creditors
---------------------------------------------------------------
Debtor: Ferreteria Y Agrocentro El Siete, Inc.
        RR-3 BOX 10168
        TOA Alta, PR 00953

Case No.: 14-05795

Chapter 11 Petition Date: July 15, 2014

Court: United States Bankruptcy Court
       District of Puerto Rico (Old San Juan)

Debtor's Counsel: Victor Gratacos-Diaz, Esq.
                  VICTOR GRATACOS-DIAZ LEGAL OFFICE
                  P O Box 7571
                  Caguas, PR 00726
                  Tel: 787 746-4772
                  Email: bankruptcy@gratacoslaw.com

Total Assets: $1.94 million

Total Liabilities: $1.91 million

The petition was signed by Jose L Rodriguez Cruz, president.

A list of the Debtor's 20 largest unsecured creditors is available
for free at http://bankrupt.com/misc/prb14-05795.pdf



UNIVERSITY OF PUERTO RICO: S&P Cuts Revenue Bond Rating to 'BB'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term rating
and underlying rating (SPUR) to 'BB' from 'BB+' on the University
of Puerto Rico's (UPR) existing university system revenue bonds.
S&P also lowered the stand-alone credit profile (SACP) on the
university, to 'bb' from 'bb+'.  Some of these bonds were issued
by the Puerto Rico Industrial, Tourist, Educational, Medical, &
Environmental Control Facilities Finance Authority.  All ratings
have been removed from CreditWatch and assigned a negative
outlook.

"Per our government-related entities criteria, a rating or outlook
change on Puerto Rico (BB/Negative) would result in a rating or
outlook change to the University of Puerto Rico given the high
likelihood of extraordinary support," said Standard & Poor's
credit analyst Bianca Gaytan-Burrell.


                            ***********


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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of the same firm for the term of the initial subscription or
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202-241-8200.


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