/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/140721.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 Monday, July 21, 2014, Vol. 15, No. 142 Headlines B R A Z I L BANCO DO BRASIL (CAYMAN): Moody's Ups Pref. Stock Rating to 'Ba2' BANCO PAN: S&P Puts 'BB/B' Rating on CreditWatch Developing BR PROPERTIES: Exits Stake in BTG Pactual-led REIT for $188MM * BRAZIL: Sergipe to Get $100MM IDB Loan for Health Sector C A Y M A N I S L A N D S ARAB FINANCE: Creditors' Proofs of Debt Due July 25 DOLPHIN LEASING: Commences Liquidation Proceedings HORIZON INVESTMENTS: Creditors' Proofs of Debt Due Aug. 11 IRONWOOD INVESTMENTS: Placed Under Voluntary Wind-Up MADISON & FOX: Commences Liquidation Proceedings OPTIMA FUTURES: Creditors' Proofs of Debt Due Aug. 4 PENGUIN LEASING: Commences Liquidation Proceedings PLAINFIELD OC: Creditors' Proofs of Debt Due Aug. 13 VRE INVESTMENT: Commences Liquidation Proceedings YI CHINESE: Commences Liquidation Proceedings C O S T A R I C A BANCO NACIONAL: Fitch Affirms LT Local Currency IDR at 'BB+' J A M A I C A ALCOA INC: Sales of Jamalco Part of Global Cuts Being Made P A N A M A AES PANAMA: S&P Lowers Corp. Credit Rating to 'BB-'; Outlook Neg. P U E R T O R I C O METROPISTAS: Moody's Cuts Rating on $435MM Sr. Secured Bond to Ba1 MINI MASTER: Asks for Oct. 11 Extension of Plan Filing Deadline MINI MASTER: Patricia Varela-Harrison Withdraws as Counsel T R I N I D A D & T O B A G O TRINIDAD CEMENT: Republic Bank Not Commenting on Unrest in Firm X X X X X X X X X LATAM: Fitch Says Negative Ratings Bias for Sovereigns * BOND PRICING: For the Week From July 14 to July 18, 2014 - - - - - =========== B R A Z I L =========== BANCO DO BRASIL (CAYMAN): Moody's Ups Pref. Stock Rating to 'Ba2' ----------------------------------------------------------------- Moody's Investors Service upgraded the ratings of six Additional Tier 1 and one Tier 2 non-viability contingent capital securities following the publication of its updated Global Banks Rating Methodology on July 16, 2014. The revised methodology includes its new framework for rating 'high trigger' bank contingent capital securities (CoCos) and revisions to its existing framework for rating non-viability CoCos. Moody's had said rating upgrades would likely accompany the revision of the methodology when it requested comment on the revisions on May 1, 2014. The list of affected ratings is as follows: Additional Tier 1 securities Issuer: Banco Do Brasil S.A. (Cayman) Pref. Stock Non-cumulative Preferred Stock, Upgraded to Ba2 (hyb) STA from Ba3 (hyb) STA Issuer: Bank of Montreal Pref. Stock Non-cumulative Preferred Stock, Upgraded to Baa2 (hyb) STA from Baa3 (hyb) STA Issuer: Canadian Imperial Bank of Commerce Pref. Stock Non-cumulative Preferred Stock, Upgraded to Baa2 (hyb) STA from Baa3 (hyb) STA Issuer: National Bank of Canada Pref. Stock Non-cumulative Preferred Stock, Upgraded to Baa3 (hyb) STA from Ba1 (hyb) STA Issuer: Royal Bank of Canada Pref. Stock Non-cumulative Preferred Stock, Upgraded to Baa2 (hyb) STA from Baa3 (hyb) STA Issuer: Toronto-Dominion Bank (The) Pref. Stock Non-cumulative Preferred Stock, Upgraded to A3 (hyb) STA from Baa1 (hyb) STA Tier 2 securities Issuer: Banco Santander (Mexico), S.A. Subordinate Regular Bond/Debenture, Upgraded to Baa3 (hyb) POS from Ba1 (hyb) POS Rating Rationale As a result of the revisions to Moody's framework for rating non- viability securities, Moody's are now positioning the Additional Tier 1 ratings at each bank's Adjusted Baseline Credit Assessment (Adjusted BCA) minus three notches resulting in a one-notch upgrade in most cases. Moody's previously positioned these ratings at Adjusted BCA minus four notches. In making this change, Moody's are removing the additional notch to avoid double counting risks related to the non-viability feature and the probability of impairment associated with coupon suspension, which is possible with these securities. Positioning the rating at the bank's Adjusted BCA minus three notches already captures the probability that an impairment associated with coupon suspension could precede the bank reaching the point of non- viability. As a result, the fourth notch is not needed to capture the risk that conversion to equity or principal write-down associated with a contractual non-viability security may occur prior to the bank reaching the point of non-viability. Additional Information On Select Non-Viability Security Ratings Banco Santander (Mexico) SA's Cumulative Non-convertible Tier 2 Subordinated Notes Moody's upgraded Banco Santander (Mexico) SA's Cumulative Non- convertible Tier 2 Subordinated Notes from Ba1 (hyb), positive outlook, to Baa3 (hyb), positive outlook. Previously, Moody's had positioned the rating at the bank's Adjusted BCA minus three notches to capture the risk of coupon deferral. In line with Moody's revised methodology for rating non-viability securities, Moody's are now positioning the rating at the bank's Adjusted BCA minus two notches because Moody's believe that the risk of coupon deferral is adequately captured at this rating level. The principal methodology used in these ratings was Global Banks published in July 2014. BANCO PAN: S&P Puts 'BB/B' Rating on CreditWatch Developing ----------------------------------------------------------- Standard & Poor's placed its 'BB/B' global scale and 'brAA-/brA-1' national scale ratings on Banco Pan S.A. on CreditWatch developing. The CreditWatch listing reflects similar action on Banco BTG Pactual (BTG). Given that Banco Pan is a "strategically important" subsidiary to BTG, its ratings should remain one notch below those on its parent and move in tandem with them. The ratings on Banco Pan reflect its 'bb-' SACP and its "strategically important" status to BTG, according to S&P's criteria for rating group entities. S&P's view of its strategic importance is based on the bank's close integration with, and management from, its parent and our view that BTG won't sell the bank in the next 18-24 months. Banco Pan is a joint venture between BTG and Caixa Economica Federal (Caixa; local currency: BBB-/Stable/A-3; foreign currency: BBB+/Stable/A-3), with BTG holding 51% of Banco Pan's voting shares and Caixa holding the remainder and sharing control of the bank. Banco Pan's SACP reflects its "moderate" business position, "moderate" capital and earnings, "moderate" risk position, "average" funding, and "adequate" liquidity. S&P will resolve the CreditWatch listing on Banco Pan after it resolve the one on BTG. BR PROPERTIES: Exits Stake in BTG Pactual-led REIT for $188MM ------------------------------------------------------------- Reuters, citing a securities filing, reports that commercial real estate broker BR Properties SA sold a stake in a real estate investment trust managed by investment banking firm Grupo BTG Pactual SA for BRL418.6 million ($188 million). BR Properties S.A. is a real estate investment firm engaged in the purchase, acquisition, management, development, leasing, improvement, and sale of commercial properties, including office space, industrial warehouses, and retail locations. The firm also develops its own real estate projects and built-to-suit buildings. BR Properties S.A. was founded in 2004 and is based in Sao Paulo, Brazil. * * * As reported in the Troubled Company Reporter-Latin America on March 27, 2014, Fitch Ratings has affirmed BR Properties S.A.'s (BR Properties) foreign and local currency Issuer Default Ratings (IDR) at 'BB' and long-term national scale at 'AA-(bra)'. Fitch has also affirmed the senior unsecured perpetual notes issuance, in the amount of USD285 million, at 'BB'. The Outlook for the corporate ratings is Stable. * BRAZIL: Sergipe to Get $100MM IDB Loan for Health Sector --------------------------------------------------------- The Inter-American Development Bank (IDB) approved a $100 million loan to strengthen the health system of Brazil's State of Sergipe and reduce the prevalence of chronic diseases and maternal mortality affecting vulnerable populations. In recent years Sergipe, the smallest state located in the country's northeast, has seen an increasing prevalence of chronic diseases. In 2011, 26 percent of deaths were caused by circulatory diseases and 12 percent by different kinds of cancer. An additional challenge is the rates of maternal mortality due to lack of access to basic health interventions and the quality gap of services. The proposed program will support the consolidation of five Healthcare Networks reorganizing and expanding the range and quality of services in different regions by improving clinical practices. This involves the design and implementation of clinical protocols and developing healthcare lines: mother-child, oncology, chronic disease and disability that match prevailing conditions or state health priority. To do this, there will be an expansion and purchase of equipment for the five medical specialty centers, the cancer hospital, the Specialized Rehabilitation Center and the Women's Comprehensive Health Care Center. The program includes the construction of the Sergipe Central Laboratory (LACEN) headquarters with its accreditation and the acquisition of vehicles for health service patient transportation. The program will also seek to increase the management capacity of the Sergipe State Health Department to strengthen its strategic role as coordinator of health policy in the state. The program will also finance the establishment of a strategic core; the development of an integrated health information system, and the strengthening of an Unified Regulation Center to guarantee access and comprehensive care. The loan is for a 25-year term, with a 5.5 year grace period and an interest rate based on LIBOR. Local counterpart contribution totals $40 million. The executing agency is the State of Sergipe through its State Health Department and the guarantor is the Republic of Brazil. ========================== C A Y M A N I S L A N D S ========================== ARAB FINANCE: Creditors' Proofs of Debt Due July 25 --------------------------------------------------- The creditors of Arab Finance House are required to file their proofs of debt by July 25, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 24, 2014. The company's liquidator is: Qatar Islamic Bank c/o Paget-Brown Trust Company Ltd. P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands DOLPHIN LEASING: Commences Liquidation Proceedings -------------------------------------------------- On June 30, 2014, the member of Dolphin Leasing Limited resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Phang Thim Fatt 8 Shenton Way #18-01 Singapore 068811 HORIZON INVESTMENTS: Creditors' Proofs of Debt Due Aug. 11 ---------------------------------------------------------- The creditors of Horizon Investments 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 27, 2014. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands IRONWOOD INVESTMENTS: Placed Under Voluntary Wind-Up ---------------------------------------------------- At an extraordinary meeting held on June 12, 2014, the shareholder of Ironwood Investments Inc resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 MADISON & FOX: Commences Liquidation Proceedings ------------------------------------------------ On June 26, 2014, the sole shareholder of Madison & Fox, Ltd resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Southport Specialty Finance, LLC c/o Walkers 190 Elgin Avenue George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6365 OPTIMA FUTURES: Creditors' Proofs of Debt Due Aug. 4 ---------------------------------------------------- The creditors of Optima Futures Special Investments Fund Ltd are required to file their proofs of debt by Aug. 4, 2014, to be included in the company's dividend distribution. The company commenced wind-up proceedings on June 26, 2014. The company's liquidator is: Richard Fear c/o Daniel Woolston Telephone: (345) 814 7782 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands PENGUIN LEASING: Commences Liquidation Proceedings -------------------------------------------------- On June 30, 2014, the member of Penguin Leasing Limited resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Phang Thim Fatt 8 Shenton Way #18-01 Singapore 068811 PLAINFIELD OC: Creditors' Proofs of Debt Due Aug. 13 ---------------------------------------------------- The creditors of Plainfield OC Master Fund Limited are required to file their proofs of debt by Aug. 13, 2014, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 24, 2014. The company's liquidator is: DMS Corporate Services Ltd c/o Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands VRE INVESTMENT: Commences Liquidation Proceedings ------------------------------------------------- On June 27, 2014, the sole shareholder of VRE Investment Limited resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Seiji Yamaoka 2-4-25, Shin-ishikawa Aoba-ku, Yokohama City 225-0003 Kanagawa, Japan YI CHINESE: Commences Liquidation Proceedings --------------------------------------------- On June 25, 2014, the shareholders of Yi Chinese Art Investment Fund resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Kan Tak Kwong c/o Maples and Calder, Attorneys-at-law P.O. Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands =================== C O S T A R I C A =================== BANCO NACIONAL: Fitch Affirms LT Local Currency IDR at 'BB+' ------------------------------------------------------------ Fitch Ratings has affirmed Banco Nacional de Costa Rica's (BNCR) ratings including its Issuer Default Rating (IDR) at 'BB+' and its Viability Rating (VR) at 'bb+'. Key Rating Drivers - IDRs, National Ratings And Senior Debt The bank's IDRs, National and senior debt ratings reflect the explicit sovereign guarantees for all state-owned banks stated in Costa Rica's Banking Law. BNCR's IDR and National Ratings are aligned with Costa Rica's Sovereign Ratings (Long-term Foreign and Local Currency IDR 'BB+'/Stable Outlook). The Stable Outlook is also aligned with the sovereign Rating Outlook. Rating Sensitivities - IDRs, National Ratings And Senior Debt Changes in Costa Rica's sovereign rating may trigger changes in the bank's IDRs, National and senior debt ratings. Key Rating Drivers - VR The bank's VR is influenced by the bank's moderate risk appetite and adequate, although decreasing capitalization metrics. The rating also considers its strong local franchise, ample funding as well as its modest performance and weaker asset quality metrics relative to similarly rated international peers (emerging market commercial banks with a viability rating between 'bb-' and 'bb+'). BNCR's capital position is adequate. The bank's Fitch Core Capital ratios compare well with similarly rated peers and its regulatory capital ratio is above the regulatory limit, despite the pressure imposed by increased asset growth over the first quarter of 2014. However, the bank runs with a relatively tight buffer in terms of its regulatory capital (100/250 bps above the minimum), which demands a cautious growth plan, considering the relatively low internal capital generation capacity of the bank. Favorably, BNCR has taken advantage of its capacity to issue subordinated debt and in May 2014 signed a subordinated debt agreement with the Inter-American Development Bank in order to strengthen its regulatory capital ratios. The US$100 million issuance does not receive equity credit from Fitch; however, it allows the bank to execute its growth strategy without additional pressure on regulatory capital. As of June 2014, BNCR reports a regulatory capital ratio of 12.62%. BNCR is the largest bank in the nation and holds a dominant market position in several business lines. The bank's ample and diversified deposits are a result of the explicit sovereign support, the strength of the bank's franchise, and its ample geographic coverage. Also BNCR funding is benefited by several regulations that name the bank as one of the recipients of some compulsory deposits from private owned banks. The bank's loan portfolio is well diversified and shows moderate concentrations by individual creditor and by economic sector. BNCR investment portfolio has low credit risk exposure and is well administrated in order to comply with regulatory investment guidelines and to minimize capital charges and maintain liquidity requirements in local and foreign currency. BNCR also benefits from a measured and well matched exposure to FX risk. Such exposure is controlled through the bank's limits to its open position in U.S. Dollars and its ability to obtain funding in both Colones and U.S. Dollars in the local and international market. BNCR foreign currency loans and deposit exposure is below the average of the system but still significant at 40% and 34%, respectively. BNCR's asset quality has improved, while still below its peers' average. Non-performing loans have decreased to 2% of total loans and reserve coverage has also increased. In Fitch's opinion, the improved asset quality could positively affect year end results, as it reduces credit costs. BNCR's operating ROAA remains below the median of similarly rated banks and also below the median of public owned banks in Latin America. Credit costs, which were still high in 2013, have been reducing its burden during 2014 while some advances in terms of operating costs have partially compensated the reduction on spreads. In Fitch's opinion, better income diversification, sustainable lower credit costs and tighter expenses control may benefit the bank's performance. Rating Sensitivities - VR Upgrades in the bank's VR are unlikely in the foreseeable future, given its strong relation to the government in both sides of the balance sheet. A downgrade in BNCR's VR could be triggered by a material deterioration of the bank's asset quality metrics (past due loans to total loans ratio above 4%) and/or a reduction in profitability to a point the may hinder the capacity to adequately generate capital internally. Key Rating Drivers - Support Rating And Support Rating Floor BNCR's support rating (SR) of '3' reflects Fitch's opinion that there is a moderate probability of support from the state. In Fitch's opinion, the bank has a clear policy roll and the explicit support of the state. Support probability is limited by the sovereign rating. Given the explicit guarantee from the government towards the bank and its systemic importance; the bank SRF is equalized to the sovereign rating. Rating Sensitivities - Support Rating And Support Rating Floor BNCR's support SR and SRF are sensitive to changes in the sovereign rating Fitch has affirmed BNCR's ratings as follows: International ratings -- Long-term IDR at 'BB+', Outlook Stable; -- Short-term IDR at 'B'; -- Long-term local currency IDR at 'BB+', Outlook Stable; -- Short-term local currency IDR at 'B'; -- Long-term senior unsecured bonds at 'BB+'; -- Viability Rating at 'bb+'; -- Support Rating at '3'; -- Support Rating Floor at 'BB+'. National ratings: -- Long-term national rating at 'AA+(cri)', Outlook Stable; -- Short-term national rating at 'F1+(cri)'; -- Long-term senior unsecured bonds at 'AA+(cri)'; -- Commercial paper at 'F1+(cri)'. ============= J A M A I C A ============= ALCOA INC: Sales of Jamalco Part of Global Cuts Being Made ---------------------------------------------------------- Jamaica Observer reports that the plan by US-based Alcoa Inc. to divest its Jamaica operations forms part of its global transformation that will also see it slash production in Brazil and Australia, management indicated. It aims to contain costs, which at times exceed revenues at the global company, according to Jamaica Observer. "To further optimize the Alumina business, Alcoa signed a non- binding letter of intent to pursue a sale of its ownership stake in Alcoa Minerals of Jamaica (AMJ), which operates the Jamalco bauxite mining and alumina refining joint venture," stated Alcoa Inc. in its financials released to shareholders, according to the report. "The above actions are consistent with the Company's goal of lowering its position on the world aluminum production cost curve to the 38th percentile and the alumina cost curve to the 21st percentile, by 2016," the company said, the report notes. The report relays that Alcoa Inc. will also reduce production in Brazil by 149,000 tons of smelting capacity and will in August close its Port Henry, Australia plant that produces 190,000 tonnes of aluminum. On the other hand, it will pump increased resources in its Saudi Arabia operations based on efficiencies in that locale, the report relates. "Our second quarter results prove Alcoa's transformation is in high gear," stated Klaus Kleinfeld, Alcoa Chairman and Chief Executive Officer in his notice to shareholders, the report notes. "We are taking the downstream business to new profitability heights, capturing midstream demand as auto lightweighting accelerates, while continuing to relentlessly improve upstream performance. Our strategy of building a lightweight multi- material innovation powerhouse and a highly competitive commodities business is driving compelling and sustainable shareholder value," Mr. Kleinfeld said, the report relays. The company made a profit of US$129 million in its June quarter compared to a US$148 million loss a year earlier, the report notes. Alcoa Inc. announced its decision to sell Jamalco in June to Noble Resources UK Limited. The company however added that it would retain a minority interest in AMJ and serve as Jamalco's managing operator for at least two years, the report says. Noble Resources owns coal reserves which on the surface could be used to reduce high energy costs. Alcoa entered the island some 50-years ago having built its refinery at Halse Hall, Clarendon in 1973 which shipped unprocessed bauxite. Alcoa's investment in Jamaica followed those of Reynolds and Alcan in 1952, Kaiser in 1953, and Revere in 1971. Jamalco is owned jointly by AMJ, which has 55 per cent stake in the Clarendon-based refinery, and the government-owned Clarendon Alumina Production, with 45 per cent. AMJ is part of the Alcoa World Alumina & Chemicals (AWAC) group of companies and is owned 60 per cent by Alcoa and 40 per cent by Alumina Ltd. Alcoa Inc. produces and manages primary aluminum, fabricated aluminum, and alumina. The company operates in four segments: Alumina, Primary Metals, Global Rolled Products, and Engineered Products and Solutions. * * * As reported in the Troubled Company Reporter on July 1, 2014, Fitch Ratings has stated that Alcoa's ratings and Outlook are unaffected by the company's announcement that it is acquiring Firth Rixson for $2.85 billion. Fitch currently rates Alcoa as follows: -- Issuer Default Rating (IDR) 'BB+'; -- Senior unsecured debt 'BB+'; -- $3.75 billion revolving credit facility 'BB+'; -- Preferred stock 'BB-'. -- Short-term IDR 'B'; -- Commercial paper 'B'. The Rating Outlook is Stable. =========== P A N A M A =========== AES PANAMA: S&P Lowers Corp. Credit Rating to 'BB-'; Outlook Neg. ----------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating and the rating on AES Panama S.A.'s outstanding $300 million notes due 2016 to 'BB-' from 'BB+'. At the same time, S&P revised the company's SACP to 'b+' from 'bb'. S&P also removed the ratings from CreditWatch with negative implications, where it placed them on May 16, 2014. The outlook on the corporate credit rating is negative. "We have revised AES Panama's financial risk profile to "aggressive" reflecting our expectation for weak cash flow generation and financial metrics during 2014. In our base-case scenario, we assume a weak to moderate El Nino developing in Oct. and Nov. and lasting through first quarter 2015. However, we expect the company's metrics to improve relatively rapidly afterward once hydrology normalizes. Moreover, we expect AES Panama to announce its investment in a fuel oil barge with a total installed capacity of 72 MW and power sale contracts with local electric distribution company, EGESA, which should improve earnings. We expect this new investment, which would be fully financed with bank debt, to start generating $40 million - $50 million in EBITDA in 2015 and help reduce AES Panama's cash flow volatility in the next 12-18 months," S&P said. AES Panama is struggling with extraordinarily low hydrology, significantly low power generation of its fully hydro capacity, high power sale contracts, and skyrocketing spot electricity prices. In the past 12 months, lower-than-historic average rainfall has resulted in spot prices of more than $280 per megawatt hour (MWh) compared with AES Panama's average contracted sale price of about $87/MWh (considering capacity charges). Spot prices have remained very high in Panama during the first six months of 2014, compelling the government to implement strategies to avoid electricity shortages. On March 31, 2014, the company reached an agreement with the Ministry of Finance that compensates AES Panama for the government's delay in investment in the country's third transmission line. The government decided to reimburse the high cost of AES Panama's purchases in the spot market for up to $40 million in 2014 and $30 million in 2015 and 2016, each. This compensation will partly offset the high cost of its purchases in the spot market resembling a hedge on the spot market for 70 MW up to these amounts. ===================== P U E R T O R I C O ===================== METROPISTAS: Moody's Cuts Rating on $435MM Sr. Secured Bond to Ba1 ------------------------------------------------------------------ Moody's Investors Service downgraded Metropistas $435 million of senior secured bonds rating to Ba1 from Baa3. The rating was also placed under review for further downgrade. The rating action follows Moody's downgrade of the Commonwealth of Puerto Rico (B2 negative) and its related debt issuing entities earlier this month. Ratings Rationale Metropistas operates the PR-22 and the PR-5 toll-roads under a concession from the Puerto Rico Highways and Transportation Authority (Caa1 RUR-down). Despite the economic downturn in Puerto Rico, in 2013 traffic in Metropistas remained stable and revenues increased by 5%. Over the first quarter of 2014, traffic increased moderately and revenues grew by a solid 17% due to a tariff increase at the beginning of the year, as contemplated by the concession agreement. However the deterioration in Puerto Rico's credit profile as captured in the recent rating downgrade has direct implications for the ratings of the local projects and infrastructure issuers. Metropistas' downgrade recognizes that its creditworthiness cannot be completely de-linked from the current stresses facing the government and population of Puerto Rico, which have made credit quality more uncertain for companies operating under government- granted concessions governed under local law whose cash flow can also be affected by changes in the economic environment. The rating action acknowledges the challenges of systemic risks for all local credits, particularly those that have a dependence on the local economy for cash flow. In addition, the Commonwealth's fiscal distress could impact the ability of the Government Development Bank (GDB, B3 negative) to make payments to Metropistas in the event of adverse actions or termination. During the review, Moody's will focus on assessing the nature and magnitude of linkages between Metropistas and Puerto Rico's systemic risks, operating environment and regulatory regimes. If Moody's considers that these linkages between the commonwealth and Metropistas are stronger than those reflected by the current rating, the rating could be further downgraded. The rating could also be downgraded if the commonwealth or its agencies attempt to change the concession under which Metropistas operates or take any other action that directly or indirectly diminishes the company's operating flexibility and cash flow generation capacity to pay its debt obligations. A deeper economic recession that affects traffic growth and diminishes cash flow generation of the project could also result in a rating downgrade. Metropistas operates the PR-22 and the PR-5 corridors in Puerto Rico. The PR-22 is an important manufacturing, pharmaceutical, and retail trade corridor, as well as a commuter link to the suburbs west of San Juan and a connector among popular tourist areas and the Port of San Juan. PR-5 connects San Juan with the growing city of Bayamon and the service areas includes a population over 1.2 million. The methodology used in this rating is Privately Managed Toll Roads published in May 2014. MINI MASTER: Asks for Oct. 11 Extension of Plan Filing Deadline --------------------------------------------------------------- Mini Master Concrete Services Inc. asks the U.S. Bankruptcy Court for the District of Puerto Rico to extend the time to file a Chapter 11 plan of reorganization and disclosure statement explaining that plan until Oct. 11, 2014. The Debtor tells the Court that it is analyzing these alternatives: a) The opening of new locations at Aguadilla and Arecibo, Puerto Rico, in order to increase its sales. b) The sale or surrender of assets to secured creditors. c) A joint venture with another company to re-establish its manufacturing plant in Toa Baja, Puerto Rico. The Debtor says it needs more time to complete the aforementioned analysis, evaluate its alternatives, and increase its revenues in order to file a feasible plan. Master Aggregates Toa Baja Corporation filed a Chapter 11 petition (Bankr. D.P.R. Case No. 13-10305) in Old San Juan, Puerto Rico on Dec. 11, 2013. Charles Alfred Cuprill, Esq., at Charles A Cuprill, PSC Law Office, in San Juan, serves as counsel. The Debtor disclosed $11,125,939 in assets and $10,148,437 in liabilities. Mini Master Concrete aka Mini Master aka Empresas Master filed a Chapter 11 petition (Bankr. D. P.R. Case No. 13-10302) on Dec. 11, 2013, in Old San Juan, District of Puerto Rico. Charles A Cuprill, PSC Law Office, also serves as counsel to Mini Master Concrete. The petition was signed by Carmen Betancourt, president. MINI MASTER: Patricia Varela-Harrison Withdraws as Counsel ---------------------------------------------------------- The Hon. Mildred Caban Flores of the U.S. Bankruptcy Court for the District of Puerto Rico granted the request of Patricia I. Varela-Harrison, Esq., previously an attorney at Charles A. Cuprill, PSC, Law Offices, to withdraw as counsel for Mini Master Concrete and its debtor-affiliates because she no longer works for the firm. Master Aggregates Toa Baja Corporation filed a Chapter 11 petition (Bankr. D.P.R. Case No. 13-10305) in Old San Juan, Puerto Rico on Dec. 11, 2013. The Debtor tapped Charles A Cuprill, PSC Law Office, in San Juan, as counsel. The Debtor disclosed $11,125,939 in assets and $10,148,437 in liabilities. Mini Master Concrete aka Mini Master aka Empresas Master filed a Chapter 11 petition (Bankr. D.P.R. Case No. 13-10302) on Dec. 11, 2013, in Old San Juan, District of Puerto Rico. Charles A Cuprill, PSC Law Office, also serves as counsel to Mini Master Concrete. The petition was signed by Carmen Betancourt, president. ================================= T R I N I D A D & T O B A G O ================================= TRINIDAD CEMENT: Republic Bank Not Commenting on Unrest in Firm --------------------------------------------------------------- RJR News reports that Trinidad & Tobago's Republic Bank has declined to comment on reports that it is among large shareholders in Trinidad Cement Limited (TCL) seeking to oust the board of the financially troubled cement company. Press reports said that 18 of TCL's major shareholders are trying to force out several members of the current board of directors, according to RJR News. The report notes that word is that the disgruntled shareholders want CEO Rollin Bertrand, Dr. Leonard Nurse, Andy Bhajan, Bevon Francis and Brian Young removed as directors. They have reportedly provided their own list of directors to immediately take control of the company, the report relates. Trinidad Cement Limited is a cement company and is the parent company of Caribbean Cement Company Limited. * * * As reported in the Troubled Company Reporter-Latin America on May 8, 2014, Fitch Ratings assigned the following initial ratings to Trinidad Cement Limited Group (TCL Group): --Foreign currency Issuer Default Rating (IDR) 'B-'; --Local currency IDR 'B-'; --Expected senior secured note issuance of up to USD325 million 'B-/RR4'. ================= X X X X X X X X X ================= LATAM: Fitch Says Negative Ratings Bias for Sovereigns ------------------------------------------------------ Negative sovereign rating actions exceeded positive actions in the first half of 2014 in Latin America and the Caribbean, according to Fitch Ratings. While the Rating Outlooks for most countries in the region remain Stable, Negative bias remains for ratings as currently more countries have Negative Outlooks than Positive Outlooks. Fitch downgraded the sovereign ratings of Bermuda, Guatemala and Venezuela by one notch each during the first half of 2014. However, Fitch also took two positive rating actions in the region, upgrading Jamaica to 'B-' from 'CCC' and assigning a Positive Outlook to Paraguay. The Stable Rating Outlooks for the majority of sovereigns in the region suggest that positive and negative rating pressures are balanced. Currently, only Paraguay has a Positive Outlook while Argentina (Local IDR only), Aruba, El Salvador and Venezuela have Negative Outlooks. 'Softer commodity prices, China's slowdown, slower domestic demand and country-specific factors are clouding the near-term prospects of the Latin American region,' said Shelly Shetty, Head of Fitch's Latin America Sovereigns Group. 'Structural constraints including low investment rates and infrastructure gaps, are also biting in some countries and highlight the need for a broader reform effort to improve the medium term growth trajectory,' she added. Slower growth will likely constrain improvements in fiscal and external solvency ratios and dampen the sovereign credit momentum in the region, particularly as the rating cycle for the region has been quite positive in recent years. At the same time, Fitch does not anticipate broad-based negative rating actions either as several Latin American countries have adequate external liquidity and credible policies in place to confront potential higher international volatility. Market access remains relatively robust for most countries. Fiscal room to stimulate domestic economies is more constrained although countries like Chile and Peru with countercyclical buffers and low government debt burdens have room to implement such policies. Fitch is projecting Latin America's real GDP growth will reach 1.9% in 2014 compared to 2.6% last year with modest recovery expected in 2015. The regional growth forecast masks important differences between countries. Brazil and Mexico are likely to under-perform this year with growth in the former reaching only 1.5% and remaining below 3% in the latter. Even the previously fast growing Chilean economy is losing steam as it confronts lower copper prices and China's deceleration. Growth will also slow although remain relatively robust in Bolivia, Panama, Paraguay and Peru, while Colombia and the Dominican Republic are the only economies expected to accelerate this year. On the other hand, Argentina and Venezuela will likely experience recession. Among the inflation targeting countries inflation remains elevated in Brazil and Uruguay. Chile, Mexico and Peru have cut interest rates amid slowing growth. Brazil has halted its monetary tightening cycle arguing the impact of the rate increases is cumulative and operates with a lag. Colombia is the only country in a tightening mode given its robust domestic demand dynamics. Argentina and Venezuela will continue to have the highest inflation rates in the region. A gradual fiscal deterioration is forecasted in 2014 for several countries due to slower growth, lower commodity prices and continued spending pressures amid a heavy electoral calendar. The two largest economies of Brazil and Mexico will see higher deficits this year. Aruba, Costa Rica, El Salvador and Suriname will incur among the highest deficits in the region (surpassing 4.5% of GDP in each case). Only Bolivia and Peru are forecasted to run a small surplus or near balanced budget positions. Commodity dependent and recession-stricken economies of Argentina and Venezuela will have to manage their fiscal accounts within the constraints imposed by their limited financing options. Nevertheless, the modifications to Venezuela's FX regime and the weaker average official exchange rate will likely benefit government oil receipts. The regional current account deficit is forecasted to reach 2.6% of GDP in 2014. Current account deficits remain elevated in several countries including Brazil, Costa Rica, El Salvador, Jamaica, Panama and Uruguay. However, in most cases, external vulnerability is mitigated by healthy external reserves cushion, the continued resilience of FDI flows and access to markets and multilaterals. On the other hand, international reserves of Argentina and Venezuela have faced pressure over the past year. While they have stabilized in recent months, Fitch will continue to monitor their trajectory as significant drainage could further undermine their external debt repayment capacity. The electoral calendar was heavy in the first half of 2014 with Presidential elections held in Colombia, Costa Rica, El Salvador and Panama. The election outcomes do not materially impact sovereign credit trends in these countries. However, countries like El Salvador and Costa Rica face the challenge of implementing fiscal reforms to secure better fiscal and government debt trajectories. Bolivia, Brazil and Uruguay will hold elections in the second half of 2014. The Bolivian President Evo Morales is expected to win the re-election bid which would imply broad policy continuity. Uruguay's market friendly policies are likely to remain in place after the elections in which former President Tabare Vasquez is the current frontrunner. The polls in Brazil suggest that the likelihood of a second round have increased. Regardless of the electoral outcome, the next administration will confront the challenge of making policy adjustments to reduce the existing macroeconomic imbalances and take measures to boost confidence and competiveness of the economy. Political polarization will remain high in Venezuela and could make it difficult for the government to make faster progress on the much needed policy adjustments to ease foreign exchange constraints and address issues of scarcity, crime and very high inflation. Periodic periods of social instability cannot be ruled in Venezuela. Material structural reforms to boost the lagging productivity growth in the region have not made significant headway. Mexico is the only exception where the government has been making progress on long-standing issues. * BOND PRICING: For the Week From July 14 to July 18, 2014 ---------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- BES Finance Ltd 2.9 EUR 211913000 PDVSA 6 11/15/2026 USD 4500000000 ESFG International Ltd 5.8 EUR 52950000 PDVSA 6 5/16/2024 USD 5000000000 PDVSA 5.4 4/12/2027 USD 3000000000 Mongolian Mining Corp 8.9 3/29/2017 USD 600000000 PDVSA 5.5 4/12/2037 USD 1500000000 Hindili Industry 8.6 11/4/2015 USD 380000000 BES Finance Ltd 4.5 EUR 95767000 Automotores Gildemeister SA 8.3 5/24/2021 USD 400000000 SMU SA 7.8 2/8/2020 USD 300000000 NQ Mobile Inc 4 10/15/2018 USD 172500000 Inversiones Alsacia SA 8 8/18/2018 USD 347300000 Venezuela Governement 7.7 4/21/2025 USD 1599817000 Glorious Property Holdings Ltd 13 3/4/2018 USD 400000000 Renhe Commercial 13 3/10/2016 USD 600000000 Bank Austria 1.9 EUR 97608000 China Precisoin 7.3 2/4/2018 HKD 1028000000 BCP Finance Co 2.4 EUR 99063406.25 Automotores Gildemeister SA 6.8 1/15/2023 USD 300000000 BA-CA Finance Cayman 2 Ltd 2 EUR 51481000 Argentina Bonar Bonds 26 9/10/2015 ARS 5424358000 Inversora de Electrica 6.5 9/26/2017 USD 130263886 BCP Finance Co 4.2 EUR 72112000 Mongolian Mining Corp 8.9 3/29/2017 USD 600000000 Argentina Government 4.3 12/31/2033 JPY 5840497000 PDVSA 6 5/16/2024 USD 5000000000 Argentina Boden Bonds 2 9/30/2014 ARS 930445250 PDVSA 6 11/15/2026 USD 4500000000 Greenfields Petroleum Corp 9 5/31/2017 CAD 23750000 Hindili Industry 8.6 11/4/2015 USD 380000000 Argentina Government 4.3 12/31/2033 JPY 2553017000 Argentina Bocon 2 1/3/2016 ARS 1608749924 Argentina Government 0.5 12/31/2038 JPY 21037843000 Automotores Gildemeister SA 8.3 5/24/2021 USD 400000000 Caixa Geral De Depositos Finance 1 EUR 44885000 SMU SA 7.8 USD 300000000 Renhe Commercial 13 3/10/2016 USD 600000000 Caixa Geral De Depositos Finance 2 EUR 65843000 Inversiones Alsacia SA 8 8/18/2018 USD 347300000 Automotores Gildemeister SA 6.8 1/15/2023 USD 300000000 BPI Capital Finance Ltd 2.9 EUR 15290000 Banif Finance Ltd 1.6 EUR 42234000 Banco BPI SA/Cayman Islands 4.2 11/14/2035 EUR 20000000 Empresas La Polar SA 3.8 10/10/2017 CLP 5000000 City of Buenos Aires Argentina 2 1/28/2020 USD 146771000 Aguas Andinas SA 4.2 12/1/2026 CLP 3289471.68 City of Buenos Aires Argentina 2 12/20/2019 USD 113229000 Venezuela Governement 7 3/31/2038 USD 1250003000 Empresa de Transporte 5.5 7/15/2027 CLP 3732799.8 Cia Cervecerias Unidas SA 4 12/1/2024 CLP 1050000 Almendral Telecomunicaciones SA 3.5 12/15/2014 CLP 644441.04 Cia Sud Americana de Vapores SA 6.4 10/1/2022 CLP 607142.76 Decimo Primer 4.5 10/25/2041 USD 37800000 Provincia del Chaco 4 12/4/2026 USD 10111047.85 Ruta de Bosque 6.3 3/15/2021 CLP 5062781.25 Talcan Chillan 2.8 12/15/2019 CLP 2978764.16 EMP Ferrocarriles Estado 6.5 1/1/2026 CLP 788572.14 *********** Monday's edition of the TCR-LA delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-LA editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Monday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-LA constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-LA editor holds some position in the issuers' public debt and equity securities about which we report. Tuesday's edition of the TCR-LA features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. Submissions about insolvency-related conferences are encouraged. Send announcements to conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 2014. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-241-8200. * * * End of Transmission * * *