TCRLA_Public/140918.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     L A T I N   A M E R I C A

          Thursday, September 18, 2014, Vol. 15, No. 185


                            Headlines



A N T I G U A  &  B A R B U D A

* ANTIGUA & BARBUDA: Center Board of Health Retrenches 450 Jobs


A R G E N T I N A

INDUSTRIAS METALURGICAS: Fitch Lowers Issuer Default Rating to 'C'
INDUSTRIAS METALURGICAS: S&P Lowers Rating to 'CC', Outlook Neg.


B E R M U D A

SALT KETTLE: Set to Close After 45 Years, Owners Revealed


B R A Z I L

AMERICA LATINA: Fitch Affirms 'BB-' IDR; Outlook Positive
OGX PETROLEO: Owner's Accounts Said to Only Cover Daily Expenses
OI SA: To Sell Africatel Stake Amid Dispute With Shareholder


C A Y M A N  I S L A N D S

COBALT LIMITED: Members Receive Wind-Up Report
CSN ISLANDS VIII: Shareholders' Final Meeting Set for Sept. 18
LONGVIEW FUND: Shareholders' Final Meeting Set for Sept. 19
NAVIGATOR FIXED: Shareholder to Hear Wind-Up Report on Sept. 23
OZ URSA: Shareholder to Receive Wind-Up Report on Oct. 10

R-ONE AKITA: Shareholder to Receive Wind-Up Report on Oct. 3
R-ONE ASAKA: Shareholder to Receive Wind-Up Report on Oct. 3
R-ONE IRUMA: Shareholder to Receive Wind-Up Report on Oct. 3
R-ONE NAGANO: Shareholder to Receive Wind-Up Report on Oct. 3
R-ONE NISHIKASUGAI: Shareholder to Hear Wind-Up Report on Oct. 3

R-ONE SAGA: Shareholder to Hear Wind-Up Report on Oct. 3
R-ONE SEVEN: Shareholder to Hear Wind-Up Report on Oct. 3
R-ONE UTSUNOMIYA: Shareholder to Hear Wind-Up Report on Oct. 3
SOLABO INVESTMENTS: Members Receive Wind-Up Report


D O M I N I C A N   R E P U B L I C

DOVEMCO: Fix Damaged Forest or Leave, Dominican Republic Says


J A M A I C A

DIGICEL GROUP: Completes Acquisition of Telstar Cable
NATIONAL INSURANCE SCHEME: On Course to Bankruptcy in 20 Years


T R I N I D A D  &  T O B A G O

CARIBBEAN AIR: Flies Emptier Planes on Former Air Jamaica Routes
CL FIN'L: No Sale of CLICO Shares Yet, Says Chairman Yetming


V E N E Z U E L A

VENEZUELA: S&P Lowers LT Sovereign Credit Ratings to 'CCC+'



                            - - - - -


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


* ANTIGUA & BARBUDA: Center Board of Health Retrenches 450 Jobs
---------------------------------------------------------------
The Daily Observer reports that large-scale retrenchment of
approximately 450 workers from the Central Board of Health (CBH)
took place a week ago.

Those severed said their workplace has provided no answer about
the thousands of dollars in outstanding wages going as far back as
October 2013, according to The Daily Observer.

The workers, who are responsible for keeping the country clean,
said they were told they would have received a letter by Sept. 12,
outlining the reasons their services are no longer needed and
payment arrangements, the report notes.

"On the September 8 we had a meeting and that's what they told us.
Sept. 12 come and pass and nobody say anything and nobody give us
no letter.  What [are we suppose] to do?  They owe us thousands of
dollars and since the government change (in June) nobody pay us.
Before then, we got money little, little, there was never a time
like this," a former employee complained, the report notes.

Another affected worker told the news agency that the CBH said an
assessment is being conducted into arrangements the body had with
contractors, and the likely outcome would be a drop in pay if they
were rehired.

In all, about 150 contractors were hired by the CBH, and those
contractors each employed three or four workers, the report
relates.

Contractors whose staff provided grass cutting and drain cleaning
services, were reportedly paid EC$3,120 a week to cover wages for
their staff and other expenses, while those who cleared debris
earned EC$3,000, the report says.

This is the second ministry where it was reported dozens of
workers were sent home, the report discloses.

About a month ago, the Ministry of Public Works severed relations
with 26 independent contractors, the report adds.


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


INDUSTRIAS METALURGICAS: Fitch Lowers Issuer Default Rating to 'C'
------------------------------------------------------------------
Fitch Ratings has downgraded the foreign and local currency Issuer
Default Ratings (IDRs) of Industrias Metalurgicas Pescarmona
S.A.I.C. y F. (IMPSA), WPE International Cooperatief U.A. (WPEI),
and the companies' ultimate holding company, Venti S.A. (Venti) to
'C' from 'CCC'.  These rating actions affect IMPSA's USD225
million senior unsecured international bonds due October 2014 and
WPEI's USD390 million senior unsecured international bonds due
September 2020.  The bonds' ratings are being downgraded to
'C/RR4' from 'CCC/RR4'.

Fitch has also removed IMPSA, WPEI and Venti from Rating Watch
Negative.

KEY RATING DRIVERS

Interest Payment Postponement

The company's decision to postpone its interest payment is the
main driver for Fitch's ratings downgrade.  On Sept. 15, 2014,
IMPSA announced to the Argentine Comision Nacional de Valores
(CNV) that it will be postponing interest payments corresponding
to its local ON Class 10/11 local bond obligations due Sept. 18,
2014.  Furthermore, the company declared that it is postponing its
interest/principal payments on all outstanding notes and its other
obligations with financial creditors.  This announcement follows
the company's delayed interest payments the company disclosed to
the CNV on June 25, 2014.  On that occasion, the company made its
payments for the local ON Class 8/9 bonds with a one week delay.

Weakening Liquidity

The downgrade also reflects the company's stretched liquidity and
inability to meet its financial obligations.  At the IMPSA level,
which encompasses the company's Argentina business, the company's
cash and marketable securities were equivalent to USD28 million as
of year-end (YE) 2013 versus short-term debt obligations of USD411
million or 7% of short-term obligations.  As of second quarter of
2013 (2Q'13), cash and marketable securities declined to USD8
million while short-term debt obligations of USD444 million means
cash and equivalents declined to 2% as a percentage of short-term
debt.

At the Venti S.A. holding company level, the company's cash
position is still stretched, though relatively better than at the
IMPSA operating company level, as it held USD50 million in cash
which is 17% of USD299 million in short-term debt as of 1Q'14.
The company's financial strategy has revolved around meeting its
debt obligations with a mix of cash from operations and the
rollover of existing debt, however, IMPSA's recent struggle to
make minor interest payments demonstrates difficulties in raising
additional financing to roll-over its obligations.

Meaningful debt payments for the company in Sept. total
approximately USD45 million including USD9 million in
interest/amortization payments for its local bonds due in
September and a USD20 million amortization payment on its WPEI
international bond also due in September.  As previously noted by
Fitch in its press release dated July 24, 2014, 'a failure to make
these payments could trigger a subsequent ratings downgrade'.
Hence the announcement that IMPSA will postpone its payments on
financial obligations, combined with the company's weak liquidity,
is the driver for Fitch's latest rating action.

Difficulties in Brazil; Low Credit Profile Offtakers

IMPSA's previous ratings incorporated the company's growing
business presence in Brazil.  However, the company's Argentine
operations continue to be a significant driver for free cash flow
generation at the company while Fitch estimates that the Brazilian
operations are negatively impacting cash flow at the company.  The
company's high leverage, aggressive capital expenditure program
and its backlog concentration on a few large projects in
developing countries has contributed to the company's current
difficulties.  Corpoelec (IDR rated 'B'; Outlook Negative by
Fitch) in Venezuela is among the companies that IMPSA needs to
rely upon.

Ratings Reflect Recent Reorganization

The rated international notes are held at the WPEI and IMPSA
entity levels.  WPEI is a direct subsidiary of Wind Power Energia
S.A. (WPE), which in turn is wholly owned by Venti S.A.  In 2014,
the company reorganized under a new corporate structure, whereby
Venti S.A. is the overall holding company separately owning 100%
of WPE in Brazil and 100% of IMPSA in Argentina.  Previously,
IMPSA owned 100% of WPE, but with the 2014 reorganization the
Brazilian and Argentinian businesses were put under separate
umbrellas.  Given the reorganization, Fitch has identical IDR
ratings for the holding company, Venti, IMPSA, and WPEI.

The WPEI international notes are irrevocably and unconditionally
guaranteed by Venti, IMPSA and WPE on a senior unsecured basis.
WPEI's ratings reflect the credit levels of the guarantors.  The
IMPSA international notes' ratings also reflect the credit levels
of its guarantor, Venti S.A.  The 'C' IDR assumes all WPEI and
IMPSA's future debt issuances would be fully and unconditionally
guaranteed by IMPSA, WPE and Venti S.A.

RATING SENSITIVITIES

The company's ratings could be downgraded if the company defaults
on its scheduled amortization/interest payments and/or does not
fulfil its financial obligations following the late-payment grace
period.

An upgrade is unlikely at this time given the company's
difficulties meeting its payment obligations.


INDUSTRIAS METALURGICAS: S&P Lowers Rating to 'CC', Outlook Neg.
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on
Industrias Metalurgicas Pescarmona S.A.I.C. y F. (IMPSA) and WPE
International Cooperatief U.A. (WPEIC) to 'CC' from 'CCC-'.
The outlook remains negative.

On Sept. 15, 2014, IMPSA announced that it will postpone the ARP10
million interest payment on its local bonds Series X and XI due
Sept. 18, 2014. Although the company is still current on those
obligations, we expect default to be a virtual certainty because
IMPSA also announced the postponement of the coupon and interest
payments on all of its remaining financial obligations.

The postponement was mainly due to delays in the collection of
receivables for certain projects, particularly Venezuela-based
Tocoma and Macagua. The company is currently elaborating a
restructuring plan to remedy its operational, commercial, and
financial situation.

The negative outlook indicates that we might lower the corporate
credit rating to 'D' if IMPSA doesn't comply with the payment on
Sept. 18, 2014, and S&P believes the company would not remedy the
nonpayment within the 30 calendar day grace period contemplated in
the bond's indenture, as well as in S&P's criteria.


=============
B E R M U D A
=============


SALT KETTLE: Set to Close After 45 Years, Owners Revealed
---------------------------------------------------------
The Royal Gazette reports that owners of Salt Kettle Guest House
revealed that the guesthouse is to close.

The report notes that an unnamed spokesperson for owner Hazel Lowe
and her family said "They have now determined the next exciting
step for the property is its transformation to a small, tasteful
residential complex."

Five cottages, two two-bedroom apartments, a one-bedroom apartment
and two studios will all be available for residential rental,
according to The Royal Gazette.

The report says that bookings for the guesthouse will continue to
be taken until January of next year, when the property will close
for renovations to make it more suited for residential use.

It is expected the homes will be available for rent by the early
summer of 2015, the report notes.

Salt Kettle Guest House in Paget is one of Bermuda's oldest guest
houses.  It is run by Hazel Lowe and her family for nearly 45
years, is to become homes rather than a holiday spot.


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


AMERICA LATINA: Fitch Affirms 'BB-' IDR; Outlook Positive
---------------------------------------------------------
Fitch Ratings has affirmed the Foreign and Local Currency Issuer
Default Ratings (IDRs) of America Latina Logistica S.A. (ALL) at
'BB-' and the company's National Scale Long-term Ratings at
'A(bra)'.  Fitch has also affirmed the ratings of ALL's
subsidiaries and their respective unsecured debentures at
'A(bra)'.  The Rating Outlook remains Positive.

ALL's ratings continue to reflect the company's consistent cash
flow generation through the economic cycle as well as its solid
business position in the Brazilian railroad industry.  The
company's adequate financial flexibility and its evenly scheduled
debt amortization program are also positive rating considerations.

The Positive Outlook considers the potential for ALL's business to
deleverage over the next two years as volumes increase from the
start-up of operations in the rail line segment from Alto Araguaia
to Rondonopolis and the completion of the duplication at an
important stretch of its Sao Paulo's rail network.  These
initiatives are expected to result in a consistent increase in
volumes transported by around 12% to 15% beginning in 2015.

In addition to the aforementioned, Fitch views the merger of ALL
with Rumo Logistica as positive for ALL's credit profile as it
brings a strong shareholder to its capital structure.  The merger
will also allow the company to benefit from synergies between the
two companies' logistics business model.  On a pro forma basis,
the merger would allow a faster than expected deleveraging trend
for ALL, as Rumo is a very low leveraged company; however a
positive rating action will largely depend on the growth strategy
to be pursued by Cosan, the new shareholder, for the new logistic
segment.  Fitch will monitor the developments of this transaction
and take the appropriate rating action once the process is deemed
concluded.

KEY RATING DRIVERS:

Solid Business Position:

The ratings incorporate the company's solid business position as
the sole railroad transportation operator in the South and Mid-
Western regions of Brazil, areas with high growth potential due to
stable global demand for grain.  Although the company faced some
operating challenges during 2013 and 1Q2014, the long-term
fundaments of ALL's businesses remains strong.  The company's
operating model has demonstrated resilience to adverse global
economic conditions through several cycles.  The company has shown
to be able to increase volumes transported in the last years,
during diverse economic scenarios.

Credit Linkage Incorporated:

The ratings of ALL's subsidiaries are at the same rating level as
the parent company, ALL, due to the strong operational, financial
and legal ties between the companies.  This relationship relies on
the majority ownership ALL maintains on its subsidiaries; the fact
that the parent controls the management and the flow of dividends
from the operational companies; the strong financial integration
between the companies' operations; the cross guarantees between
ALL and its railroad subsidiaries' debt; and the strategic
importance of the railroad subsidiaries to ALL.  Structural
subordination risks due to ALL's status as a holding company are
mitigated by the unrestricted cash distribution policy of its
operating subsidiaries, and the guarantees that these Brazilian
operational subsidiaries provides to the vast majority of ALL's
debt.

High and Stable Margins, Future FCF Trend Positive:

ALL's cash flow from operations (CFFO) has remained consistent and
have been boosted by its ability to capture additional volumes of
cargo.  The company has consistently maintained CFFO of more than
BRL500 million since 2011, representing an average of 17% of net
revenues The company's EBITDA margins remain stable in the 49% to
52% range during the same period.  The ratings incorporate the
expectation that the company's margin will remain stable and its
CFFO will improve during 2014-2015 period.

FCF remains negative due to the high capex and despite the
positive trend in the company's CFFO as a result of large
investments over the past five years.  During the LTM ended June
30, 2014, the company's FCF was negative BRL295 million due to
BRL1 billion of capital expenses.  Capex is expected to remain
high, at about BRL900 million per year over the next five years.
ALL will be challenged to consistently increase its operational
cash flow in order to boost FCF generation.  FCF is expected to
remain negative during 2014 but become slightly positive in 2015
onwards while investments mature.  FCF should gradually improve,
due to an increase in the company's transportation capacity
following the completion of some large projects in 2015.

High Leverage:

ALL's leverage remains high.  For the LTM, ALL's consolidated
adjusted net leverage, measured as net adjusted debt/EBITDAR
ratio, was 4.4x.  The company's total adjusted debt was
approximately BRL11.8 billion at the end of June.  This debt
includes BRL11 billion in on-balance-sheet debt, which consist
primarily of concession obligations, loans from Banco Nacional de
Desenvolvimento Economico e Social (BNDES) and debentures - and
BRL838 million in estimated off-balance-sheet obligations related
to rental expenses.  Total off-balance-sheet debt is calculated
adjusting by 5x the company's rental payments of BRL67.6 million
during LTM June 30, 2014.

ALL's net adjusted financial leverage has the potential to decline
depending on the balance between the company's cash flow
generation, which is expected to increase during the next two
years, and the actual level of capex.  Net adjusted leverage is
likely to trend toward 4.2x by the end of 2014 and be less than
4.0x by the end of 2015.  Net leverage may fall below 4.0x by 2014
if the merger with Rumo is concluded.  This could trigger a
ratings upgrade.

Adequate Liquidity & Well-Scheduled Debt Payments:

ALL continues to maintain a solid liquidity position, supported by
approximately BRL2.3 billion of cash and marketable securities as
of June 30, 2014.  ALL has BRL2 billion of debt due during the
next 12 months.  The company's exposure to refinancing risk is
manageable, as reflected by its adequate ratios of cash to short
term debt of 1.2x and cash plus CFFO to short-term debt of 1.6x.

The company has a manageable debt amortization schedule, with no
concentration of payments.  ALL's indebtedness is principally
comprised of BRL3.1 billion of loans with the development bank,
Banco Nacional de Desenvolvimento Economico e Social (BNDES), BRL3
billion of debentures and BRL1.7 billion of lease and concession
obligation.

RATING SENSITIVITY:

The ratings may be upgraded as a result of an improvement in the
company's credit profile with a focus on an ongoing reduction in
leverage, along with consistently high levels of liquidity.
Improvement in the company's FCF generation and deleveraging, with
the adjusted leverage trending below 4x times in a sustainable
basis would likely result in upgrade of the ratings.  The
conclusion of the deal with Rumo is also a trigger for an upgrade
if it would led to a faster than expected deleveraging trend for
the company.

A negative rating could be triggered by a long term deterioration
in the company's operational performance, or if leverage increases
materially to a level above 4.5x.  Fitch will be monitoring the
conclusion of the merger with Rumo and a negative rating action
could arise depending on the potential sizeable capex program at
the merger entity.  Negative ratings actions could also result
from acquisitions and/or investments that are not considered core
to operations by Fitch, or if the company distributes an
unexpected amount of dividends.

Fitch has affirmed the following ratings:

ALL:
   -- Long-term Foreign and Local Currency IDRs at 'BB-';
   -- Long-term National Rating at 'A(bra)';
   -- Long-term National Rating of the 8th Debenture Issue at
      'A(bra)';
   -- Long-term National Rating of the 9th Debenture Issue at
      'A(bra)';
   -- Long-term National Rating of the 10th Debenture Issue at
      'A(bra)'.

ALL Malha Sul S.A.:
   -- Long-term National Scale Rating at 'A(bra)';
   -- Long-term National Rating of the 3rd Debenture Issue at
      'A(bra)'.

ALL Malha Norte S.A.:
   -- Long-term National Scale Rating at 'A(bra)';
   -- Long-term National Rating of the 6th Debenture Issue at
      'A(bra)';
   -- Long-term National Rating of the 8th Debenture Issue at
      'A(bra)'.

ALL Malha Paulista S.A.:
   -- Long-term National Scale Rating at 'A(bra)';
   -- Long-term National Rating of the 1st Debenture Issue at
      'A(bra)'.


OGX PETROLEO: Owner's Accounts Said to Only Cover Daily Expenses
----------------------------------------------------------------
Blake Schmidt at Bloomberg News reports that former billionaire
Eike Batista only has enough money in his bank accounts to cover
"day-to-day expenses," according to Sergio Bermudes, one of his
lawyers.

Mr. Bermudes said a judge ordered as much as BRL1.5 billion
(US$642 million) of Mr. Batista's bank accounts frozen as a
preventive measure after federal prosecutors in Rio de Janeiro
state accused him of financial-market crimes and requested his
assets be blocked, according to Bloomberg News.

"I can guarantee we don't have BRL1.5 billion in accounts," Mr.
Bermudes told Bloomberg News by phone, adding at least one account
has as little as "1 real left," without being more specific.

Once the world's eighth-richest person, according to the Bloomberg
Billionaires Index, Mr. Batista's commodities empire collapsed
last year, led by flagship Oleo & Gas Participacoes SA, formerly
known as OGX, Bloomberg News recalls.  The Rio de Janeiro-based
company filed for bankruptcy protection in October after spending
more than 10 billion reais since it was founded in 2007, Bloomberg
News relates.  OSX Brasil SA, Batista's shipbuilding company, has
also entered Brazil's judicial-recovery process, Bloomberg News
relays.

The amount of the asset-freeze request is approximately equal to
the damage to financial markets as a result of the crimes of which
he's accused, according to a statement posted on the prosecutors'
office's website Sept. 13, Bloomberg News notes.  It may include
homes, cars, boats, airplanes and financial holdings.

Mr. Batista's lawyers have said he sold the shares to pay back
creditor Mubadala Development Co. and not because he anticipated
project failures, according to a document obtained by Bloomberg.

Mr. Bermudes, a civil lawyer who says he is coordinating Batista's
judicial affairs, said the allegations are "groundless," Bloomberg
News adds.

As reported in the Troubled Company Reporter-Latin America on
Sept. 16, 2014, Bloomberg News' Jonathan Levin reported that
Brazilian federal prosecutors in Rio de Janeiro state accused
former billionaire Eike Batista of financial-market crimes and are
seeking to freeze his assets.  Prosecutors accused Mr. Batista of
using privileged information in the sale of stock of Oleo & Gas
Participacoes.

The freeze could affect assets valued at as much as BRL1.5 billion
(US$641 million), and may include homes, cars, boats,
airplanes and financial holdings, Bloomberg said, citing a
statement posted on the office's web site.  The charges of insider
trading and market manipulation carry jail sentences in Brazil of
as much as 13 years, according to the statement.

                       About OGX Petroleo

Based in Rio de Janeiro, Brazil, OGX Petroleo e Gas Participacoes
S.A., now known as Oleo e Gas, is an independent exploration and
production company with operations in Latin America.

OGX filed for bankruptcy in a business tribunal in Rio de Janeiro
on Oct. 30, 2013, case number 0377620-56.2013.8.19.0001.  The
bankruptcy filing puts $3.6 billion of dollar bonds into default
in the largest corporate debt debacle on record in Latin America.
The filing by the oil company that transformed Eike Batista into
Brazil's richest man followed a 16-month decline that wiped out
more than $30 billion of his personal fortune.

The filing, which in Brazil is called a judicial recovery, follows
months of negotiations to restructure the dollar bonds, in which
OGX sought to convert debt to equity and secure as much as $500
million in new funds. OGX said Oct. 29, 2013 that the talks
concluded without an agreement.


OI SA: To Sell Africatel Stake Amid Dispute With Shareholder
------------------------------------------------------------
Cornelius Rahn at Bloomberg News reports that Oi SA plans to sell
its stake in Africatel Holdings BV amid a dispute with the
business's minority shareholder.

Oi, which holds 75 percent of the business, will lead the sale
process, the Rio De Janeiro-based company said, according to
Bloomberg News.  It will attempt to coordinate the transaction
with Samba Luxco S.a.r.l, an affiliate of Helios Investors LP,
which holds the remaining 25 percent, according to the statement
obtained by Bloomberg News.

Samba Luxco informed Oi SA that it planned to exercise an option
to sell its Africatel shares, according to Oi SA, Bloomberg News
notes.

The Brazilian carrier is challenging Samba Luxco's plan, saying no
event has occurred that would give Samba Luxco the right to
exercise the option, Bloomberg News relays.

Samba Luxco alleges that the option was triggered by the indirect
transfer of Africatel shares to Oi SA that were previously held by
Portugal Telecom SGPS SA, Oi SA said, Bloomberg News discloses.

"Oi SA believes that it is in the interest of both shareholders of
Africatel to maximize the value of their investments that such
sale is executed in a coordinated manner," Oi SA said, Bloomberg
News notes.

Africatel holds stakes in several African phone companies,
including Angola's largest wireless carrier Unitel SA.  Oi SA was
in talks to sell its stake Unitel, people familiar with the plans
said last month.

In Brazil, Oi SA is planning to boost its position by pursuing a
stake in Telecom Italia SpA's local unit, Bloomberg News notes.
The Italian carrier in turn is weighing a takeover of Oi SA,
people familiar with the discussions said, Bloomberg News adds.

                          About Oi S.A.

Oi S.A., through its subsidiaries, provides integrated
telecommunication services for residential customers, companies,
and governmental agencies in Brazil.  The company was formerly
known as Brasil Telecom S.A. and changed its name to Oi S.A. in
February 2012. Oi S.A. was founded in 1963 and is headquartered in
Rio de Janeiro, Brazil.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
Sept. 1, 2014, Moody's America Latina has assigned a Ba1/Aa2.br
corporate family rating to Oi SA based on the company's reduced
financial flexibility and weak credit metrics, which Moody's
believes will result in a weakening of Oi's competitive position.
Oi has articulated plans to reduce capital spending and may not
fully participate in the upcoming 4G spectrum auction in Brazil.
In addition, Oi could face operational, competitive or financial
challenges related to the quickly evolving competitive
environment, which includes an opportunity for consolidation
through M&A.


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


COBALT LIMITED: Members Receive Wind-Up Report
----------------------------------------------
The members of Cobalt Limited received on Sept. 17, 2014, the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Christopher Tushingham
          c/o Wardour Management Services Limited
          Telephone: (345) 945-3301
          Facsimile: (345) 945-3302
          P.O. Box 10147 Grand Cayman KY1-1002
          Cayman Islands


CSN ISLANDS VIII: Shareholders' Final Meeting Set for Sept. 18
--------------------------------------------------------------
The shareholders of CSN Islands VIII Corp. will hold their final
meeting on Sept. 18, 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:

          Eneas Garcia Diniz
          c/o Barnaby Gowrie
          Telephone: +1 (345) 914 6365


LONGVIEW FUND: Shareholders' Final Meeting Set for Sept. 19
-----------------------------------------------------------
The shareholders of Longview Fund will hold their final meeting on
Sept. 19, 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:

          Alessandro Grande
          Via Munterots 13
          7513 Silvaplana
          Switzerland
          c/o Niall Hanna
          Walkers
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9001
          Cayman Islands
          Telephone: +1 (345) 814 4201
          Facsimile: +1 (345) 949 7886


NAVIGATOR FIXED: Shareholder to Hear Wind-Up Report on Sept. 23
---------------------------------------------------------------
The shareholder of Navigator Fixed Income Total Return Fund
Limited will hear on Sept. 23, 2014, at 10:00 a.m., the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Ogier
          c/o Joanne Huckle
          Telephone: (345) 815-1895
          Facsimile: (345) 949-9877


OZ URSA: Shareholder to Receive Wind-Up Report on Oct. 10
---------------------------------------------------------
The shareholder of OZ Ursa Leasing Ltd will receive on Oct. 10,
2014, at 10:15 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


R-ONE AKITA: Shareholder to Receive Wind-Up Report on Oct. 3
------------------------------------------------------------
The shareholder of R-One Akita Holdings will receive on Oct. 3,
2014, at 9:45 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 Jennifer Chailler
          Telephone: (345) 943-3100


R-ONE ASAKA: Shareholder to Receive Wind-Up Report on Oct. 3
------------------------------------------------------------
The shareholder of R-One Asaka Holdings will receive on Oct. 3,
2014, at 10:00 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 Jennifer Chailler
          Telephone: (345) 943-3100


R-ONE IRUMA: Shareholder to Receive Wind-Up Report on Oct. 3
------------------------------------------------------------
The shareholder of R-One Iruma Holdings will receive on Oct. 3,
2014, at 9:15 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 Jennifer Chailler
          Telephone: (345) 943-3100


R-ONE NAGANO: Shareholder to Receive Wind-Up Report on Oct. 3
-------------------------------------------------------------
The shareholder of R-One Nagano Holdings will receive on Oct. 3,
2014, at 10:30 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 Jennifer Chailler
          Telephone: (345) 943-3100


R-ONE NISHIKASUGAI: Shareholder to Hear Wind-Up Report on Oct. 3
----------------------------------------------------------------
The shareholder of R-One Nishikasugai Holdings will hear on
Oct. 3, 2014, at 10:15 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 Jennifer Chailler
          Telephone: (345) 943-3100


R-ONE SAGA: Shareholder to Hear Wind-Up Report on Oct. 3
--------------------------------------------------------
The shareholder of R-One Saga Holdings will hear on Oct. 3, 2014,
at 11:00 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

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


R-ONE SEVEN: Shareholder to Hear Wind-Up Report on Oct. 3
---------------------------------------------------------
The shareholder of R-One Seven Properties Holdings will hear on
Oct. 3, 2014, at 9:30 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 Jennifer Chailler
          Telephone: (345) 943-3100


R-ONE UTSUNOMIYA: Shareholder to Hear Wind-Up Report on Oct. 3
--------------------------------------------------------------
The shareholder of R-One Utsunomiya Holdings will hear on Oct. 3,
2014, at 10:45 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 Jennifer Chailler
          Telephone: (345) 943-3100


SOLABO INVESTMENTS: Members Receive Wind-Up Report
--------------------------------------------------
The members of Solabo Investments Limited received on Sept. 17,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

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


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


DOVEMCO: Fix Damaged Forest or Leave, Dominican Republic Says
-------------------------------------------------------------
Dominican Today reports that Dominican Republic Environment
Ministry warned the Dominican-Venezuelan mining and construction
company (DOVEMCO) to comply with its commitment for environmental
mitigation at the Las Mercedes bauxite mine, in Cabo Rojo,
Pedernales province (southwest).

The Ministry warned that failure to correct its actions the
company faces penalties and even the halt of extractions,
according to Dominican Today.

The report notes that Senior Environment offices visited the area
and found still lingering major delays in the mitigation of the
mined areas including pine forests.

In a statement, Environment deputy ministers for Protected Areas,
Daneris Santana and Manuel Serrano, of Biodiversity and Forest
Resources, and Environmental Quality Director Silmer Gonzalez said
despite having notified company executives of the situation
several months ago, "we've witnessed a delay to implement the
work, such as failure to comply with deadlines and failure to
respond to activities that the requirements demand," notes the
report.

The officials said the deadline issued to DOVEMCO to remediate the
environmental damages expired in August, the report adds.


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


DIGICEL GROUP: Completes Acquisition of Telstar Cable
-----------------------------------------------------
RJR News reports that Digicel Group Limited on Sept. 11, announced
that it completed the purchase of Telstar Cable having received
the required approvals from the Broadcasting Commission.  Telstar
Cable Limited is a leading provider of cable TV, broadband and
fixed telephony services in Jamaica.

With the deal completed, Digicel Group will progress its plans to
invest significantly in the network to increase coverage and
further expand the products, services and content available to
cable customers in Jamaica, according to RJR News.

The report notes that Digicel Group Chief Executive Officer Barry
O'Brien, said; "We are thrilled to have completed the acquisition
of Telstar.  Throughout this process, we have built a fantastic
relationship with Flo and the entire Darby family and we are both
very happy to be at this juncture.

"This acquisition further cements Digicel Group's ongoing
commitment to investing in Jamaica -- and with it, customers
across the country can expect bigger, better subscriber TV
services in the near future."

The report relays that Telstar Managing Director, Flo Darby, said;
"This is a momentous occasion indeed.  After many years of hard
work, I am proud to be handing over this business to one of
Jamaica's great companies. Digicel Group has proven itself time
and time again to deliver innovative products and services to its
customers and I have no doubt that Telstar will be the platform to
provide bigger and better TV and broadband services in Jamaica."

The acquisition is Digicel Group's fourth Caribbean cable
acquisition in the last number of months and forms part of Digicel
Group's diversification strategy to continue to grow the business
in Jamaica, which includes ongoing significant investment in its
4G network and in fibre infrastructure throughout Jamaica, the
report notes.

                      About Digicel Group

Headquartered in Jamaica, Digicel Group Limited provides mobile
telecommunications services in the Caribbean and the Central
American markets.   The company's services include rollover
minutes, GPRS data services, prepaid roaming, SMS to e-mail, and
multimedia messaging, as well as broadband.

                        *     *     *

As reported in the Troubled Company Reporter-Latin America on May
27, 2014, Fitch Ratings has affirmed the ratings of Digicel Group
Limited (DGL) and its subsidiaries Digicel Limited (DL) and
Digicel International Finance Limited (DIFL), collectively
referred as 'Digicel' as:

DGL
--Long-term Issuer Default Rating (IDR) at 'B' with a Stable
  Outlook;
--USD 2 billion 8.25% senior subordinated notes due 2020 at 'B-
  /RR5';
--USD 1 billion 7.125% senior unsecured notes due 2022 at 'B-
  /RR5'.

DL
--Long-term IDR at 'B' with a Stable Outlook;
--USD 800 million 8.25% senior notes due 2017 at 'B/RR4';
--USD 250 million 7% senior notes due 2020 at 'B/RR4';
--USD 1.3 billion 6% senior notes due 2021 at 'B/RR4'.

DIFL
--Long-term IDR at 'B' with a Stable Outlook;
--Senior secured credit facility at 'B+/RR3'.


NATIONAL INSURANCE SCHEME: On Course to Bankruptcy in 20 Years
--------------------------------------------------------------
Jamaica Observer reports that the National Insurance Scheme (NIS)
is on course to becoming bankrupt in roughly 20 years.

"If the current conditions are preserved the fund will start to
have a negative cashflow in 2028 and will be completely exhausted
by 2035," said the InterAmerican Development Bank (IDB) in project
documents on its website, according to Jamaica Observer.

The IDB will, however, provide technical assistance in an attempt
to steer the scheme towards sustainability, the report notes.
It's part of an approved US$400,000 project entitled Technical
Support to Improve the Fiscal Sustainability of the NIS.

Jamaica Observer relates that the IDB contracted actuary firm
Eckler in 2013 to provide the Ministry of Labor and Social
Security an updated actuarial analysis and a roadmap for
strengthening the NIS.

"This actuarial analysis revealed that in 2013, the NIS has an
actuarial deficit of $371 billion equivalent to 27.8 per cent of
GDP with an estimated deficit of $833,166 per contributor," stated
the IDB, the report discloses.

The report relates that the IDB further explained that the NIS has
a very low coverage rate of 20 per cent of the working age
population and that 27 per cent of the elderly receive NIS pension
benefits.

"These gaps in social insurance will put additional pressure on
the budget and may result in political pressures to extend
noncontributory benefits, potentially adding to fiscal
imbalances," stated the project details, the report notes.

A key part of the technical assistance will seek to increase the
low contribution rate by installing new hardware and software, the
report relays.

"The hardware and software are outdated, making the system very
inefficient," said IDB documents obtained by the news agency.
"Its database is incomplete and has numerous errors and omissions,
causing extensive delays in the processing of claims and payment
of benefits, IDB said.  "It is not possible to verify the status
of beneficiaries of the NIS and their participation in other
government programs," IDB noted.

"Furthermore, this limits the enforcement capacity, as only 40 per
cent of those who should be contributing to the NIS are actually
contributing," IDB added.

The project, which started in July this year, follows the
submission of a concept paper on the reforms of the NIS to Cabinet
in February 2014, notes the report.

Jamaica Observer says that the Ministry of Social Security aims to
register some 70,370 persons during the current financial year; to
disburse NIS benefits totaling $12 billion; and collect $337.5
million in arrears from delinquent employers.  This is according
to the public sector estimates of expenditure and estimates for
the 2014/15 The NIS recurrent budgets estimated at $457 million,
of which $300 million relates to compensation of NIS staff, the
report adds.

               About National Insurance Scheme

National Insurance Scheme is a compulsory contributory funded
social security scheme, which offers financial protection to the
worker and his family against loss of income arising from injury
on job, incapacity, retirement, and death of the insured.


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


CARIBBEAN AIR: Flies Emptier Planes on Former Air Jamaica Routes
----------------------------------------------------------------
Jamaica Observer reports that Caribbean Airlines Limited has been
flying emptier planes on the former Air Jamaica Limited routes to
the US despite cutting back the number of flights it operates.

The ailing airline, for which ownership is split 84-16 between the
governments of Trinidad and Jamaica, just filled 56.4 per cent of
its seats during the first quarter of 2014, according to Jamaica
Observer.  This compared to 64.4 per cent load factor in the
comparative quarter in 2013.

Over the last year, CAL cut the number of flights from Jamaica to
Fort Lauderdale in Florida by 30 per cent, the report notes.  It
also reduced its flights to New York from Kingston and Montego Bay
by 20 per cent, the report relates.

The combination of a lower load factor and reduced airlift
resulted in the airline falling to the fifth position in terms of
servicing the US-Jamaica routes, Jamaica Observer says.

American Airlines, US Airways, Delta Airlines, and JetBlue all now
carry more passengers to and from the US than CAL does.

AirTran is also closing in -- it carried 36,800 passengers during
the three months to March 2014, compared to 32,000 in the
corresponding quarter of 2013, the report recalls.

Jamaica Observer notes that CAL carried 39,500 passengers during
the review period, down from 59,200 in the first quarter of 2013.

The report discloses that the airline has not been doing so well
in its home market either.  Its share of the US-Trinidad market
fell from 57 per cent during the first quarter of 2013 to 54.4 per
cent during the three-month period in 2014, the report notes.

What's more, CAL has been flying emptier planes between Port of
Spain and the US cities where it operates, the report relates.
Load factor fell from 82.2 per cent to 74.6 per cent over the
year, says Jamaica Observer.

On the upside, Delta stopped servicing the US-Guyana route last
May.  As a result, CAL saw its passenger load from Georgetown to
New York rise 25 per cent, the report notes.  On the other hand,
the travellers out of Guyana represented around 10 per cent of the
passengers it carries from the Caribbean to the US, the report
relates.

The Trinidadian government plans to pump TT$730 million (US$12.9
billion) to prop up CAL's operations over the year to September
2015, the report points out.

The year before, the government spent over TT$800 million
supporting the airline and paying its debts, adds the report.

                     About Caribbean Airlines

Caribbean Airlines Limited -- http://www.caribbean-airlines.com/
-- provides passenger airline services in the Caribbean, South
America, and North America.  The company also offers freighter
services for perishables, fish and seafood, live animals, human
remains, and dangerous goods.  In addition, it operates a duty
free store in Trinidad.  Caribbean Airlines Limited was founded in
2006 and is based in Piarco, Trinidad and Tobago.

As reported in the Troubled Company Reporter-Latin America on July
11, 2014, Trinidad and Tobago Newsday said that Caribbean Airlines
is facing another loss.  However, Finance Minister Larry Howai is
hopeful the loss could be narrowed down to less than TT$100
million, according to Trinidad and Tobago Newsday.  Mr. Howai
noted the airline industry is not the easiest and many airlines
have gone bankrupt at some point.

Citing Caribbean360.com, the TCRLA on May 20, 2013, said Minister
Howai said Caribbean Airlines Limited recorded losses estimated at
US$70 million in 2012.  In 2011, CAL had recorded losses of US43.7
million.


CL FIN'L: No Sale of CLICO Shares Yet, Says Chairman Yetming
------------------------------------------------------------
Trinidad and Tobago Newsday reports that Chairman of CL Financial
Limited Gerald Yetming said no sale of Colonial Life Insurance
Company Ltd. (CLICO)'s shares in Methanol Holdings Limited can
take place at the moment.

On Sept. 16, Mr. Yetming said the shares first have to be offered
to Consolidated Energy Ltd (CEL) at the price determined by the
International Court of Arbitration and Clico has 14 days in which
to make an offer, according to Trinidad and Tobago Newsday.

The report notes that CEL is the consortium which includes Proman,
Helm and Man Ferrostaal.  "CEL will then make a determination on
whether they are interested in buying at the price set by the
tribunal," the report quoted Mr. Yetming as saying.  According to
Mr. Yetming, the 14-day deadline will expire on September 25,
2014.

On November 18, 2013, the International Court of Arbitration of
the International Chamber of Commerce ruled that all of Clico's
56.53 percent shareholding in MHTL be sold to CEL, the report
recalls.

The report notes that the court set a deadline of January 31, 2014
for negotiating the sale, stating that if the parties could not
agree on the price of the shares by that date, it would set a
price based on market valuations.

In its ruling, the court set the valuation at US$1.175 billion and
(TT$7.485 billion) and gave CEL 60 days to conclude the sale or
forfeit the right to any future claims to purchase the shares, the
report relays.

Mr. Yetming said Clico received the tribunal's ruling and it is
being studied.  The report notes that Mr. Yetming said the board
of Clico will meet to discuss the matter.

"It is only after the board of Clico meets that permission will
then have to be sought from the Central Bank to sell," The report
quoted Mr. Yetming as saying, "The board is likely to meet on
Wednesday (Sept. 17) and by the end of the day on Wednesday (Sept.
17) a letter would have gone to the Governor (of the Central
Bank)."

Mr. Yetming, the report discloses, stressed that according to
Section 44D of the Central Bank Act, Clico cannot dispose of any
assets unless it gets the approval of the Central Bank.  Mr.
Yetming said after the Central Bank approves the sale, Clico will
send an offer letter to CEL offering them the shares at the price
set by the tribunal, the report notes.

The report relays that after the announcement of the tribunal's
determination last week, Minister of Finance Larry Howai was
reported as saying the valuation placed on the shares by the Court
of Arbitration was substantially less than the shares were worth.
He said he had been told the tribunal's ruling was 150 pages long
and it was being studied by lawyers.  Mr. Yetming said he expected
to get their advice on Sept. 22 and would make a recommendation to
Cabinet before making a statement.

The report notes that the government was looking to the sale of
the shares in MHTL to recover a significant portion of the $21
billion spent in stabilising the CL Financial Group.  Mr. Yetming
said Howai has a right to express a view on the transaction after
studying the tribunal's judgment and obtaining legal advice, the
report relays.

"After he gets his advice, if he wishes to say anything to the
board of Clico then he will say it to the board, but for the time
being we are working toward having a board meeting," the report
quoted Mr. Yetming as saying.

                      About CLICO International

Colonial Life Insurance Company Ltd. (CLICO) is a member of the CL
Financial Group.  CL Financial Limited is a privately held
conglomerate in Trinidad and Tobago.  Founded as an insurance
company by Cyril Duprey, Colonial Life Insurance Company was
expanded into a diversified company by his nephew, Lawrence
Duprey.  CL Financial is now one of the largest local
conglomerates in the region, encompassing over 65 companies in 32
countries worldwide with total assets standing at roughly US$100
billion.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on July
7, 2014, Trinidad Express said that the Central Bank has placed
the responsibility of voluntary separation package (VSEP)
negotiations for workers at insurance giant Colonial Life
Insurance Company Ltd. (CLICO) with the company's board, after
which it will review accordingly, the bank said in a statement.
The bank's statement follows protest action by CLICO workers,
supported by their union, the Banking, Insurance and General
Workers' Union (BIGWU), outside the Central Bank in Port of Spain,
according to Trinidad Express.

In a separate TCRLA report on June 26, 2014, Caribbean360.com said
that the Trinidad and Tobago government has welcomed an Appeal
Court ruling that the Attorney General Anand Ramlogan said saves
the country from paying out more than TT$1 billion (TT$1 = US$0.16
cents) to policyholders of the cash-strapped CLICO.  The Appeal
Court overturned the ruling of a High Court that ruled members of
the United Policyholders Group (UPG) were entitled to be paid the
full sums of their polices. CLICO financially caved in on itself
at the end of 2008 after the investment instruments of major
policyholders matured and they wanted hundreds of millions of
dollars they were owed.

On Aug. 6, 2013, the TCR-LA, citing Caribbean360.com, said that
over TT$8 billion worth of CLICO's profitable business will be
transferred to Atruis, a new company that will be owned by the
state.  The Trinidad Express said that the Cabinet approved the
transfer as the Finance and General Purposes Committee continues
to discuss a letter of intent hammered out by the Ministry of
Finance and CL Financial's 400 shareholders, which envisions
taxpayers will recover the more than TT$20 billion Government has
injected since 2009 to keep CL subsidiary CLICO and other
companies afloat.

At its annual general meeting in Sept. 2013, CL Financial
shareholders voted to extend the agreement with Government until
August 25, 2014, while Cabinet decides on a new framework accord
to recover the debt owed to Government through divestment of CL
subsidiaries, including Methanol Holdings, Republic Bank,
Angostura Holdings, CL World Brands and Home Construction Ltd.,
Caribbean360.com related.  Proceeds from the divestment of these
assets will go toward Government's recovery of the billions it
pumped into CLICO.


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


VENEZUELA: S&P Lowers LT Sovereign Credit Ratings to 'CCC+'
-----------------------------------------------------------
On Sept. 16, 2014, Standard & Poor's Ratings Services lowered its
long-term foreign and local currency sovereign credit ratings on
the Bolivarian Republic of Venezuela to 'CCC+' from 'B-'. The
outlook on both long-term ratings is negative. S&P also lowered
its short-term foreign and local currency ratings to 'C' from 'B'.
S&P also lowered its transfer and convertibility (T&C) assessment
on the sovereign to 'CCC+' from 'B-'.

RATIONALE

The downgrade is based on continued economic deterioration,
including rising inflation and falling external liquidity, and the
declining likelihood that the government will implement timely
corrective steps to staunch it.  "We assign 'CCC+' ratings in
instances where we assess that issuers face at least a one-in-two
likelihood of default over the next two years. The rating reflects
Venezuela's higher vulnerability to nonpayment and its growing
dependence upon favorable oil prices to meet its financial
commitments. Lowering the local currency rating reflects rising
inflation and the government's growing dependence upon shares of
local currency debt instruments, which now account for 65% of
total government debt," said S&P.

"We expect Venezuela's GDP to decrease by as much as 3.5% in 2014,
and another decline might follow in 2015. Inflation could rise up
to 65% by year-end, and we don't expect it to decline over the
next two to three years, reflecting the inflexibility of
Venezuela's monetary policy. Oil prices remain relatively
high despite recent declines. Nevertheless, the government's
decision to sustain a high level of public spending (including the
central government and PDVSA's [Petroleos de Venezuela S.A.] non-
oil related expenditure) without addressing growing economic
imbalances is leading to a decline in its external liquidity. The
economy continues to suffer from a contraction in activity, high
inflation, and increasing scarcities, largely resulting from
stringent import restrictions," said S&P.

International reserves fell significantly throughout 2013 to now
reach $20.8 billion, of which we estimate only $2.5 billion is
liquid. Other external assets held in several government special
funds (FONDEN [Fondo de Desarrollo Nacional] and BANDES [Banco de
Desarrollo Economico y Social]) have also fallen. While solid oil
revenue (estimated at $82 billion for 2014) will continue to
provide dollar inflows, the government could come under greater
strain to service its rising level of external debt maturities.
The government faces a debt payment for $1.5 billion in October
2014 and another significant maturity for $1.3 billion in March
2015. In addition, PDVSA faces a maturity for as much as $3
billion in October 2014.

Venezuela's main external indicators reflect this deterioration
and will remain vulnerable to a further decline in oil prices.
"We expect gross external financing needs to increase in 2014 to
96% of current account receives plus usable reserves from 91% as
of year-end 2013. We anticipate this deterioration will gradually
continue thereafter. Likewise, narrow net external debt also
continues to increase, and we expect it to reach close to 82% of
current account receipts at year-end 2014," said S&P.

The government plans to get financing over the near term from a
variety of sources, including a new loan from China for up to $4
billion. Although the loan would be earmarked for infrastructure
development projects in the oil sector, part of the proceeds could
be used in a situation of financial stress to repay debt. In
addition, the government may seek cross-border bond funding.
Finally, both the central government and PDVSA could undertake a
liability management operation aimed at re-profiling external
maturities due over the next three to four years. If and when
there is a proposal to exchange external debt obligations,
Standard & Poor's will analyze the terms of the exchange and
determine whether it should be considered a distressed debt
exchange according to our rating methodology.

The Venezuelan government has not been able to introduce
corrective measures to stabilize the economy despite a recent
reduction in political tension and fall in political violence
since the beginning of this year. President Nicolas
Maduro has strengthened his leadership within the Chavista
movement, winning the presidency of his party in internal
elections in July. However, successive changes in the economic
team over the last two years continue to postpone adjustments in
economic policies that would be needed to alleviate shortages,
boost economic activity, and strengthen public finances. Such
policies include steps to centralize the management of external
liquid assets, reduce the divergence between the country's three
exchange rates (and the unofficial exchange rate), provide more
foreign exchange to liberalize imports, and increase the highly
subsidized prices for gasoline and electricity. A greater
level of opaqueness in the direction of economic policy, which
includes growing delays in the publication of statistical
information, exacerbates the failure to implement corrective
measures.

As in the past, the government could devalue the official exchange
rate to improve fiscal prospects throughout the next 12 months.
This will likely happen as the government shifts some foreign
exchange operations from 6.3 bolivares per dollar toward the more
depreciated exchange rates prevailing in Venezuela (for example,
the 11 bolivares of SICAD I [Sistema Complementario de
Administracion de Divisas] or the about 50 bolivares of SICAD II).
Such steps could provide relief to the government's fiscal
accounts in the short term by increasing the local currency value
of dollar-denominated oil revenues.  "We expect the general
government deficit to remain between 3% and 5% of GDP over
the next two years. Venezuela's net general government debt
remains at a relatively low 24% of GDP estimated for 2014. High
inflation will continue to erode the real value of the debt
denominated in local currency over the next two years," said S&P.

Expanding oil production over the next few years, taking advantage
of Venezuela's large oil reserves, is key to addressing the
country's spending needs and deep-seated economic problems. Higher
oil output depends in large part on continued access to external
funding. Hence, the government has a strong incentive to service
external debt payments even if stress in the domestic economy
increases. The government has continued to give priority to
external debt servicing despite growing arrears to other creditors
and recent growing shortages of foreign exchange for importers.

"We expect political polarization, erratic economic policymaking
that exacerbates both the economy's oil dependence and the
prevailing macroeconomic inconsistencies, and weakening external
liquidity to remain the main constraints to the ratings on
Venezuela," S&P said.

Growing restrictions on external liquidity as a result of PDVSA's
marginally decreasing oil production and a more uncertain outlook
for oil prices will continue to limit Venezuela's ability to deal
with growing domestic political and economic challenges. The
country's vast oil and gas reserves, the government's relatively
low debt burden, and its low level of external debt continue to
support the rating.

OUTLOOK

The negative outlook reflects the possibility that growing
economic distortions, lower external assets, and sustained
political polarization could increase the risks of a government
debt default over the next two years.  S&P's outlook also reflects
the risk that, even if the government attempts to take adjustment
measures (such as a devaluation or fiscal adjustment), it may not
be able to implement them effectively because of the difficult
political environment as a result of still-strong political
opposition as well as disagreements within the government
coalition. S&P could lower the rating by one notch under such a
scenario.

Steps to defuse the heightened political tensions in Venezuela
would reduce the risks of eroding governability and greater
volatility in economic policies. That, along with a growing track
record of pragmatic economic policies aimed at containing economic
imbalances and strengthening external liquidity, could lead S&P to
revise the outlook to stable.

RATINGS LIST

Downgraded
                                        To            From
Bolivarian Republic of Venezuela
Sovereign Credit Rating                CCC+/Neg/C    B-/Neg/B
Transfer & Convertibility Assessment   CCC+          B-
Senior Unsecured                       CCC+          B-


                            ***********


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 * * *