/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/141002.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, October 2, 2014, Vol. 15, No. 195 Headlines A R G E N T I N A ARGENTINA: Deposits US$161 Million in Local Bank for Debt Payment B R A Z I L BRAZIL: Primary Budget Deficit Unexpectedly Widens in August C A Y M A N I S L A N D S ALEXANDER ASSET: Shareholders Receive Wind-Up Report DAVIES LIMITED: Shareholders' Final Meeting Set for Oct. 3 FORTY4 FUND: Shareholders' Final Meeting Set for Oct. 23 FORTY4 MASTER: Shareholders' Final Meeting Set for Oct. 23 LATAM TRUST 2007-102: Fitch Cuts Rating on CLP26.46BB Cert. to B- LONGPOINT RE II: Shareholder to Receive Wind-Up Report on Oct. 8 PLUTUS GENERAL: Shareholders' Final Meeting Set for Oct. 16 PLUTUS TRANSEO: Shareholders' Final Meeting Set for Oct. 16 SPURS HOLDINGS: Shareholder Receives Wind-Up Report STABLE GROWTH: Shareholders Receive Wind-Up Report SYOSS LIMITED: Members Receive Wind-Up Report C O L O M B I A COLOMBIA: Emerald Boss Seeks More Investment to End Slump M E X I C O CEMEX SAB: Gets New US$1.35 Billion Bank Deal PATRIMONIO SA: S&P Affirms BB Rating on Series PATRICB 07U Notes P E R U * PERU: To Get US$15MM IDB Loan to Modernize Agricultural System T R I N I D A D & T O B A G O CL FINANCIAL: "Had No Choice," Chairman Yetming Says PETROTRIN: Must do Better After Oil Spills, Minister Says TRINIDAD & TOBAGO: Workers Get TT$187 Million Backpay V E N E Z U E L A PROVINCIAL DE REASEGUROS: Fitch Affirms 'B' IFS; Outlook Negative - - - - - ================= A R G E N T I N A ================= ARGENTINA: Deposits US$161 Million in Local Bank for Debt Payment ----------------------------------------------------------------- Katia Porzecanski at Bloomberg News reports that Argentina deposited US$161 million in a local bank for bond payments, seeking to get around a U.S. court ruling that bans the country from servicing its overseas debt. The payment was made in a new trustee account at Nacion Fideicomisos SA, a unit of state-run Banco de la Nacion Argentina, the economy Ministry said in an e-mailed statement obtained by Bloomberg News. Lawmakers in the South American country approved a bill earlier this month to allow for the local payment of foreign debt, Bloomberg News notes. "Argentina ratifies once more its unbreaking compromise to comply with its obligations to bondholders and contribute to preserving the right to be paid what is owed to them under debt contracts," the ministry said in the statement, Bloomberg News relates. U.S. District Judge Thomas Griesa ruled Sept. 29, that Argentina is in contempt of court for shifting control over debt payments to Buenos Aires from New York, Bloomberg News notes. The judge had previously ruled the nation cannot make payments on foreign debt unless holders of defaulted bonds from 2001 are paid in full, Bloomberg News discloses. President Cristina Fernandez de Kirchner has refused to comply with the ruling, triggering a default in July. Argentina had asked Bank of New York Mellon Corp. to step down as bond trustee after Judge Griesa's ruling prevented the New York- based bank from passing along payments to bondholders, Bloomberg News recalls. The bank hasn't stepped down. Sept. 30's payment is the second due from Argentina since June, when the U.S. Supreme Court left Judge Griesa's ruling intact, Bloomberg News says. While the ministry's statement says that the funds are now property of the new trustee, it doesn't say if the bank has the bondholders' information or how investors can claim their money, Bloomberg News adds. * * * The Troubled Company Reporter-Latin America, on Aug. 1, 2014, reported that Argentina defaulted on some of its debt late July 30 after expiration of a 30-day grace period on a US$539 million interest payment. Earlier that day, talks with a court- appointed mediator ended without resolving a standoff between the country and a group of hedge funds seeking full payment on bonds that the country had defaulted on in 2001. A U.S. judge had ruled that the interest payment couldn't be made unless the hedge funds led by Elliott Management Corp., got the US$1.5 billion they claimed. The country hasn't been able to access international credit markets since its US$95 billion default 13 years ago. As a result, reported the TCR-LA on Aug. 1, Standard & Poor's Ratings Services lowered its unsolicited long-and short-term foreign currency sovereign credit ratings on the Republic of Argentina to selective default ('SD') from 'CCC-/C'. The TCR-LA, on Aug. 4, 2014, also reported that Fitch Ratings downgraded Argentina's Foreign Currency Issuer Default Rating (IDR) to 'RD' from 'CC', and its Short-Term Foreign Currency Issuer Default Rating to 'RD' from 'C'. Meanwhile, Moody's Investors Service affirmed Argentina's Caa1 issuer rating, which also applies to domestic law bonds, confirmed the (P)Caa2 rating for its foreign law bonds, and affirmed the Ca rating on the original defaulted bonds. The long-term issuer rating was placed on negative outlook, reported the TCR-LA on Aug. 5, 2014. On Aug. 8, 2014, the TCR-LA reported that Moody's Latin America Agente de Calificacion de Riesgo affirmed the deposit, debt, issuer and corporate family ratings on Argentina's banks and financial institutions, both on the global and national scales. The outlook on these ratings has been changed to negative from stable. At the same time, the rating agency has affirmed the banks' Caa2 foreign-currency deposit ratings and Not- Prime short-term ratings. The banks' standalone E financial strength ratings corresponding to caa1 baseline credit assessments (BCA) have also been affirmed. The TCR-LA, On Aug. 6, 2014, also reported that DBRS Inc. has downgraded Argentina's long-term foreign currency issuer rating from CC to Selective Default (SD). The short-term foreign currency rating has been downgraded to Default (D), from R-5. The long-term and short-term local currency issuer ratings have been confirmed at B (low) and R-5, respectively. The trend on the long-term local currency rating is Negative, and the trend on the short-term local currency rating is Stable. =========== B R A Z I L =========== BRAZIL: Primary Budget Deficit Unexpectedly Widens in August ------------------------------------------------------------ Mario Sergio Lima and Matthew Malinowski at Bloomberg News report that Brazil's primary budget deficit unexpectedly widened in August after the government cut taxes and boosted spending before elections, raising the risk of a rate downgrade in the next year. The budget, which excludes interest payments and includes states, municipalities and government-run companies, reached a deficit of BRL14.5 billion (US$5.9 billion) in August, compared with a gap of BRL4.7 billion the prior month, the central bank said in a report distributed in Brasilia, according to Bloomberg News. The median estimate from 15 analysts polled by Bloomberg was for a balanced primary budget. August marked the fourth straight month of a primary deficit, and the gap was the biggest ever for the month, notes the report. Moody's Investors Service has cut the country's rating outlook to negative. The agency will be monitoring Brazil's economy for the next 12-18 months, but there could be a downgrade before that period if conditions deteriorate much further, analyst Mauro Leos said at a Moody's conference in Sao Paulo, Bloomberg News notes. Bloomberg News discloses that President Dilma Rousseff's government is struggling to stimulate an economy that fell into recession this year without draining government coffers. President Rousseff's two leading opponents ahead of presidential elections in October pledge to increase fiscal austerity while boosting growth and slowing inflation, after Standard & Poor's in March downgraded Brazil's credit rating to one level above junk, citing a slowdown in economic growth and what it said was a deterioration in fiscal accounts, notes Bloomberg News. Bloomberg News relays that swap rates on the contract due in January 2017 fell seven basis points, or 0.07 percentage point, to 12.28 percent at 1:58 p.m. local time on Oct. 1. The real weakened 0.3 percent to 2.4539 per U.S. dollar. Nominal Budget Bloomberg News says the nominal budget gap in August reached BRL31.5 billion, compared to economists' estimates of a BRL24.8 billion deficit. "What's worrying is that the pace of increases in expenditures continues to be strong," Roberto Padovani, chief economist at Votorantim Ctvm Ltda, told Bloomberg News by phone from Sao Paulo. "It's difficult for the government to meet the 1.9 percent primary surplus goal," Mr. Padovani added. Brazil's central government primary budget deficit, which excludes interest payments as well as municipalities and government-run companies, reached a deficit of BRL10.4 billion in August, compared with a gap of BRL2.2 billion the prior month, the Treasury said in a report distributed in Brasilia, Bloomberg News relates. Fiscal Target Central government revenues fell to BRL82.5 billion in August from BRL88.1 billion in July, while spending increased to BRL92.9 billion from BRL90.3 billion, according to the Treasury report, notes the report. Through August, the central government has built a primary surplus of BRL4.7 billion, compared with the target for the full year of BRL80.8 billion, Bloomberg News relays. "We managed to accumulate BRL62 billion in four months last year, this is not out of the ordinary," the report quoted Treasury Secretary Arno Augustin as saying. "There are revenues expected for the next months and we are working to fulfill the primary target," he added. Entered Recession According to Bloomberg News, the total primary surplus accumulated over 12 months fell to 0.94 percent of gross domestic product from a revised 1.23 percent in July, the central bank report said. Net DEBT to GDP rose to 35.9 percent from 35.1 percent in July, Bloomberg News notes. Brazil's economy entered into recession when gross domestic product shrank 0.6 percent in the second quarter in the biggest quarterly contraction since 2009, Bloomberg News recalls. That followed a revised 0.2 percent drop in the first three months of the year. Economists surveyed by the central bank estimate the world's second-largest emerging market will expand 0.29 percent this year, which would be the worst performance since the 2009 aftermath of the global financial crisis, Bloomberg News notes. The central bank on Sept. 30, cut its GDP expansion forecast to 0.7 percent from 1.6 percent, Bloomberg News relays. The government this year extended tax cuts on cars to stimulate consumer spending and said it would grant breaks to exporters that will cost it about BRL6 billion next year to boost foreign trade, Bloomberg News notes. Preident Rousseff is the front-runner in public opinion polls ahead of voting this month. ========================== C A Y M A N I S L A N D S ========================== ALEXANDER ASSET: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Alexander Asset Management Group received on Sept. 30, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. 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 DAVIES LIMITED: Shareholders' Final Meeting Set for Oct. 3 ---------------------------------------------------------- The shareholders of Davies Limited will hold their final meeting on Oct. 3, 2014, at 11:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Blackstone Capital Partners Holdings Director L.L.C. c/o Lacxon Chan The Blackstone Group 345 Park Avenue, 31st Floor New York, New York 10154 United States of America Telephone: +1 (212) 583 5892 FORTY4 FUND: Shareholders' Final Meeting Set for Oct. 23 -------------------------------------------------------- The shareholders of The Forty4 Fund Ltd will hold their final meeting on Oct. 23, 2014, at 4:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd c/o Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor, P.O. Box 1344, Grand Cayman KY1-1108 Cayman Islands FORTY4 MASTER: Shareholders' Final Meeting Set for Oct. 23 --------------------------------------------------------- The shareholders of The Forty4 Master Fund Ltd will hold their final meeting on Oct. 23, 2014, at 4:00 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd c/o Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor, P.O. Box 1344, Grand Cayman KY1-1108 Cayman Islands LATAM TRUST 2007-102: Fitch Cuts Rating on CLP26.46BB Cert. to B- ----------------------------------------------------------------- Fitch Ratings has downgraded the rating for Latam Trust, Series 2007-102 (Latam 2007-102): -- CLP26,462,500,000 UF-Adjusted Certificates to 'B-sf' from 'Bsf'; Outlook Stable. KEY RATING DRIVERS Fitch's rating of Latam Trust 2007-102 (the issuer) is credit- linked to Fitch's assessment of the reference entity, Sociedad de Inversiones Pampa Calichera S.A. (Pampa Calichera). Fitch's assessment of the company is based upon publicly available information including NRSRO ratings and Fitch's internal credit view. The notes' rating is delinked from the swap counterparty, Merrill Lynch Capital Services, Inc.'s parent, Bank of America Corporation, rated 'A/F1', Outlook Negative by Fitch. RATING SENSITIVITIES The rating remains sensitive to Fitch's assessment of Pampa Calichera. A change in Fitch's assessment of the qualified investment, Pampa Calichera, would likely result in a revision in the rating of the notes. The issuer's proceeds were used to purchase USD50 million qualified investments in the form of Pampa Calichera bonds, which collateralize the credit default swap. The transaction is designed to provide credit protection, which is arranged through a credit default swap (CDS) between the issuer and the swap counterparty, Merrill Lynch Capital Services, Inc.'s parent, Bank of America Corporation. The rating addresses the timely payment of interest in U.S. dollars (USD) converted at the prevailing UF-Adjusted CLP/USD spot exchange rate and the ultimate repayment of principal on the maturity date at the prevailing CLP/USD spot exchange rate as per the transaction's governing documents. The rating does not address any foreign exchange risk. LONGPOINT RE II: Shareholder to Receive Wind-Up Report on Oct. 8 ---------------------------------------------------------------- The shareholder of Longpoint RE II Ltd. will receive on Oct. 8, 2014, at 10:00 a.m., the liquidators' report on the company's wind-up proceedings and property disposal. The company's liquidators are: Dena Thompson Laura McLaughlin Telephone: 914-2267/ 914-2264 Facsimile: 949-6021 P.O. Box 10233 171 Elgin Avenue, George Town Willow House, 3rd Floor, Cricket Square Grand Cayman KY1-1002 Cayman Islands PLUTUS GENERAL: Shareholders' Final Meeting Set for Oct. 16 ----------------------------------------------------------- The shareholders of Plutus General Partner Inc will hold their final meeting on Oct. 16, 2014, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ian Stokoe c/o Adam Keenan Telephone: (345) 914 8743 Facsimile: (345) 945 4237 P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands PLUTUS TRANSEO: Shareholders' Final Meeting Set for Oct. 16 ----------------------------------------------------------- The shareholders of Plutus Transeo Fund Inc will hold their final meeting on Oct. 16, 2014, at 9:30 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ian Stokoe c/o Adam Keenan Telephone: (345) 914 8743 Facsimile: (345) 945 4237 P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands SPURS HOLDINGS: Shareholder Receives Wind-Up Report --------------------------------------------------- The shareholder of Spurs Holdings Limited received on Sept. 30, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Chan Mei Lan KPMG Prince's Building, 8th Floor 10 Chater Road Central, Hong Kong c/o Samuel Wan Telephone: +852 2140 2306/ +852 2522 6022 Facsimile: +852 2869 7357 STABLE GROWTH: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Stable Growth Fund received on Sept. 30, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. 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 SYOSS LIMITED: Members Receive Wind-Up Report --------------------------------------------- The members of Syoss Limited received on Sept. 30, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Michelle R. Bodden-Moxam Telephone: (345) 946-6145 Facsimile: (345) 946-6146 Portcullis TrustNet (Cayman) Ltd. The Grand Pavilion Commercial Centre Oleander Way, 802 West Bay Road P.O. Box 32052 Grand Cayman, KY1-1203 Cayman Islands =============== C O L O M B I A =============== COLOMBIA: Emerald Boss Seeks More Investment to End Slump --------------------------------------------------------- Andrew Willis at Bloomberg News reports that Colombia needs more foreign investors such as Gemfields Plc (GEM) as well as exploration outside traditional areas to halt a decline in emerald production, said Oscar Baquero, who heads the country's federation, Fedesmeraldas. Formerly the world's top producer of the green gemstones, Colombia has slipped behind Zambia and Brazil in recent years as its aging mines lack investment in new machinery, Mr. Baquero said, according to Bloomberg News. Annual output slumped to 2.6 million carats last year, down 71 percent from decade earlier, Bloomberg News discloses. "We've always been digging in the same area," Mr. Baquero said in an interview in his Bogota office, Bloomberg News notes. "When the surface deposits run out and the veins become deeper, the operation becomes more expensive. We need to attract foreign investment," Bloomberg News quoted Mr. Baquero as saying. Colombia has 99,000 hectares (245,000 acres) with emerald- producing potential, of which only 9,000 hectares have been explored so far, Mr. Baquero said, citing figures from Colombia's geological institute, Bloomberg News discloses. The Andean nation's two emerald belts are largely concentrated in the central province of Boyaca. London-based Gemfields, the world's top emerald producer, has been visiting Colombia over the past four years, seeking to buy a share in an emerald mine, said Chief Executive Officer Ian Harebottle, Bloomberg News notes. "The initial purchase price for our share would have to be reasonable, allowing us an opportunity to invest more into further growth," Mr. Harebottle told Bloomberg News in a telephone interview. "Gemfields tends to buy 75 percent, and leave 25 percent with local stakeholders," Mr. Harebottle added. Gemfields, which mines emeralds in Zambia, has climbed 108 percent over the past 12 months to 52 pence in London trading, Bloomberg News notes. The company would like to buy an asset in a proven emerald-producing region of Colombia, and considers security in Boyaca to be adequate, even following recent violence, Mr. Harebottle said, Bloomberg News relates. Emerald Czar According to Bloomberg News, Colombia's President Juan Manuel Santos ordered the army in November to reinforce security in Boyaca's gemstone region, a six-hour drive north of Bogota, after emerald baron Pedro Rincon was injured in a grenade attack. Luis Murcia, a well-known emerald trader, was murdered last month. In the late 1980s, thousands died when Gonzalo Rodriguez Gacha, the Medellin cocaine cartel boss, attempted to wrest control of the emerald zone from Victor Carranza, dubbed the "emerald Czar" by Colombian newspapers, Bloomberg News recalls. Mr. Carranza, who survived wars with Marxist rebels and rival emerald clans, died from cancer in April 2013 sparking fears of a battle for control of the industry, Bloomberg News says. "There have been a series of violent retaliations, but it's irresponsible to talk about another 'green war'," Bloomberg News quoted Mr. Baquero as saying. "Violent deaths are far below other regions of the country," Mr. Baquero added. =========== M E X I C O =========== CEMEX SAB: Gets New US$1.35 Billion Bank Deal --------------------------------------------- Nacha Cattan and Michelle F. Davis at Bloomberg News report that CEMEX, S.A.B. de C.V. has reached a US$1.35 billion credit agreement with banks to refinance debt on improved terms. Cemex SAB disclosed the agreement with nine banks including Madrid-based Banco Santander SA and New York-based Citigroup Inc., according to Bloomberg News. The borrowing cost, maturity profile and other terms are favorable for San Pedro Garza Garcia- based Cemex, according to Carlos Legaspy, president and chief executive officer of Riverwoods, Illinois-based InSight Securities Inc., Bloomberg News relates. "It's great news," Mr. Legaspy said in an e-mailed response to questions from Bloomberg News. The pact signals "things are finally normalizing" for Cemex after the Mexico-based company skirted default in 2009, Bloomberg News relates. The accord involves a four-year average term with the last principal payment in September 2019, Cemex SAB said in a statement obtained by Bloomberg News. The spread over the London interbank offered rate would be as much as 3.75 percentage points, and the deal includes a revolving credit tranche of 40 percent of the principal, Cemex SAB said, Bloomberg News relays. The loan, along with US$350 million from proceeds of senior secured notes issued Sept. 11, will go to repay about 41 percent of the company's obligations, Cemex SAB said, Bloomberg News notes. With those, the company will have repaid US$1.7 billion of indebtedness in just two months, leaving a balance of US$2.475 billion, Bloomberg News discloses. 'Very Pleased' "We are very pleased with the improved terms of this transaction," Chief Financial Officer Jose Antonio Gonzalez said in the statement obtained by Bloomberg News. "It also represents Cemex's return to the syndicated bank market under conventional conditions," Mr. Gonzales added. The nine banks, which also include Paris-based BNP Paribas SA and London-based HSBC Holdings Plc, were among lenders that provided financing in September 2012, according to Monterrey, Mexico-based Cemex, Bloomberg News relays. The 2022 bonds, which started trading in October 2012 at a price of 101.5 cents on the dollar, climbed to 112.9 cents Oct. 1, according to data compiled by Bloomberg. About CEMEX SAB CEMEX, S.A.B. de C.V., is a holding company of entities which main activities are oriented to the construction industry, through the production, marketing, distribution and sale of cement, ready-mix concrete, aggregates and other construction materials. CEMEX is a public stock corporation with variable capital (S.A.B. de C.V.) organized under the laws of the United Mexican States, or Mexico. * * * As reported in the Troubled Company Reporter-Latin America on Sept. 8, 2014, Fitch Ratings has assigned expected ratings of 'BB- /RR3(EXP)' to CEMEX S.A.B. de C.V.'s (CEMEX) proposed USD notes due in 2025 and its proposed Euro notes due in 2022. Proceeds from the Euro notes issuance will be used for general corporate purposes, including the repayment of indebtedness under CEMEX's Facilities Agreement. Proceeds from the USD issuance will be used for general corporate purposes, including the repurchase of a portion of the company's outstanding 2018 and 2020 notes. PATRIMONIO SA: S&P Affirms BB Rating on Series PATRICB 07U Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services raised its national scale ratings on two classes from two Mexican RMBS transactions originated and serviced by Patrimonio S.A. de C.V., SOFOM, E.N.R. S&P also affirmed its global scale ratings on three Patrimonio- related classes and S&P's national scale ratings on two. The rating actions reflect the increase in credit enhancement levels--in the form of excess spread, overcollateralization, and cash reserves--and the observed and projected performance for each class since S&P last reviewed the ratings in July 2013, which adequately support the assigned ratings. Defaults measured over initial balances remained fairly stable since then, allowing the credit enhancement levels of all classes to improve. According to the latest reports (August 2014), overcollateralization increased to 7.17% from 5.52% for PATRICB 06U, and to 7.89% from 6.82% for subordinated class PATRICB 07-2. For senior class PATRICB 07, credit protection (measured as the sum of overcollateralization and subordination) also increased, to 17.56% from 16.60%. As for PATRICB 07U, overcollateralization also increased, to -5.64% from -8.85%, but as of now, the transaction still holds a negative financial position. "In addition, we've seen that Patrimonio's collection efforts, such as the loan modifications programs implemented in 2013 and an enhanced strategy for recovered property sales, are beginning to take effect on the securitized pools. Since our last review, we've observed that the number of sales from recovered properties have risen, specifically on the deals with higher defaults," S&P said. As of Aug. 2014, the number of sold properties for PATRICB 06U and PATRICB 07U reached 38 and 48, respectively, while for the PATRICB 07 and PATRICB 07-2 transaction, sales from recovered assets also increased, but at a slower pace, reaching eight as of Aug. 2014. This has had a positive effect, as additional income entered into the trusts, which were ultimately available to service debt. The 'mxA+ (sf)' rating on PATRICB 07-2 addresses the likelihood of accrued interest and principal payment at maturity. S&P's ratings on the other series address the likelihood of monthly interest payments and principal payments at maturity. NONPERFOMING RATIOS AND CREDIT ENHANCEMENT LEVELS Series +90 days DQ(%)* +90 days DQ(%)~ C/E (%)^ PATRICB 06U 40.35 14.89 7.17 PATRICB 07U 44.06 19.03 (5.64) PATRICB 07 18.65 7.26 17.56 PATRICB 07-2 18.65 7.26 7.89 *Measured over the outstanding amount of the loans. ~Measured over initial balance of the loans. ^Calculated as one minus the liabilities divided by the current assets plus the percentage of subordinate series, if any. DQ--Delinquent. C/E--Credit enhancement. S&P estimated the transactions' delinquency, defaults, and current credit enhancement levels using its current RMBS methodology and assumptions, and analyzed the transactions using LEVELS Mexico to determine updated foreclosure frequency and loss severity levels. S&P then used its Mexican RMBS cash flow model to determine its rating on each deal based on its financial position, projected performance, and structure. S&P modeled each deal's expected recovery using asset liquidations that are consistent with the output of LEVELS Mexico. FORECLOSURE FREQUENCY AND LOSS SEVERITY LEVELS MODELLED Series Rating FF (%) LS (%) PATRICB 06U mxAA 25.36 87.05 PATRICB 07U mxA 18.93 75.17 PATRICB 07 mxAA+ 18.61 29.63 PATRICB 07-2 mxA+ 14.70 21.57 FF--Foreclosure frequency. LS--Loss severity. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties, and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties, and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Reports included in this credit rating report are available at: http://standardandpoorsdisclosure-17g7.com RATINGS RAISED Patrimonio - Bursatilizaciones de Hipotecas Residenciales Series Rating Amount To From (mil.) PATRICB 06U mxAA (sf) mxAA- (sf) 54.59 UDIS PATRICB 07-2 mxA+ (sf) mxA (sf) MXN30.97 UDIS--Mexican inflation-linked units. RATINGS AFFIRMED Patrimonio - Bursatilizaciones de Hipotecas Residenciales Series Rating Amount (mil.) PATRICB 06U BBB- (sf) 54.59 UDIs PATRICB 07U BB (sf) 58.39 UDIs PATRICB 07U mxA (sf) 58.39 UDIs PATRICB 07 BBB (sf) MXN267.15 PATRICB 07 mxAA+(sf) MXN267.15 UDIS--Mexican inflation-linked units. ======= P E R U ======= * PERU: To Get US$15MM IDB Loan to Modernize Agricultural System ---------------------------------------------------------------- The Inter-American Development Bank disclosed the approval of a US$15 million loan to help Peru improve the quality, reliability and availability of its agricultural information, in a bid to improve farm policies and revenue for rural producers. Peru boasts one of the most vibrant economies in Latin America. Agriculture, the leading sector, provides employment for 26 percent of the workforce. Farm exports grew at an annual rate of 17.3 percent over the past 10 years. Rural income per capita doubled in the past six years, and poverty in the countryside fell 30 percentage points. The IDB loan will help finance a US$30 million government plan to modernize the agricultural statistics system and introduce ICTs to provide information directly to farmers. The project will use the results of the last farm census in Peru, which was carried out in 2012, to set up a statistical system that is accurate and reliable in terms of land being farmed, production, yield and production costs. Also, training will be provided to staff at the Office of Economic and Statistical Studies at the Ministry of Agriculture and Irrigation. The project will also encourage the creation of private companies focused on providing information of interest for small and medium- scale producers via electronic devices and cell phones. For instance, these firms might share information about prices at markets, business opportunities, weather forecasts and technical advice about crops. Some pilot projects have shown that this information has a significant positive economic impact, as it helps producers make decisions about production and marketing. The IDB loan is for 8.1 years, with a grace period of 7.6 years and an interest rate based on LIBOR. The local contribution for the project is US$14.9 million. =============================== T R I N I D A D & T O B A G O =============================== CL FINANCIAL: "Had No Choice," Chairman Yetming Says ---------------------------------------------------- Miranda La Rose at Trinidad and Tobago Newsday reports that CL Financial Ltd had no choice but to submit a letter of offer to sell its 56.53 percent shareholding in Methanol Holdings Trinidad Ltd to Consolidated Energy Ltd (CEL), said Chairman Gerald Yetming. The offer valued at US$1.175 billion (TT$7.485 billion) was in keeping with the International Court of Arbitration order, and was made as the deadline reached, according to Trinidad and Tobago Newsday. The letter, Chairman Yetming said, was a one-paragraph letter offering the shares to Consolidated Energy at the price determined by the International Court of Arbitration of the Paris-based International Chamber of Commerce, Trinidad and Tobago Newsday notes. The offer falls short of the TT$21 billion in cash pumped towards stabilizing CL Financial, the report discloses. Noting that the company had no choice but to offer the shares, Chairman Yetming said the company was party to a shareholders agreement in which it had agreed to comply with the ruling of an arbitration after Methanol Holdings Trinidad Ltd and Consolidated Energy (Trinidad and Tobago) Ltd had failed to come to an agreement by January 31, as ordered, the report relays. Consolidated Energy will make a determination on whether they are interested in buying at the price set by the tribunal, Chairman Yetming had explained to Trinidad and Tobago Newsday earlier in the month. The tribunal's offer was handed down on September 11, and CL Financial had to make the offer within 14 days, the report relates. Consolidated Energy is a consortium that includes Proman, Helm and Man Ferrostaal. About CL Financial 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 Aug. 6, 2013, Caribbean360.com said that over TT$8 billion worth of Colonial Life Insurance Company Limited's (CLICO) profitable business will be transferred to Atruis, a new company that will be owned by the state. CLICO is a subsidiary of CL Financial Limited. 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, according to Caribbean360.com. Caribbean360.com noted that 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. Caribbean360.com related that 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. Proceeds from the divestment of these assets will go toward Government's recovery of the billions it pumped into CLICO, Caribbean360.com said. PETROTRIN: Must do Better After Oil Spills, Minister Says --------------------------------------------------------- Janelle De Souza at Trinidad and Tobago Newsday reports that Trinidad and Tobago Energy Minister Kevin Ramnarine said Petroleum Company of Trinidad and Tobago (Petrotrin) has faced many challenges throughout the years, especially over the past year with the oil spills in La Brea and the Marabella River. However, it is important for the company not to be held prisoner by the past and instead plan carefully as they focus on a future that is now uncertain due to the discovery of shale gas in the United States, according to Trinidad and Tobago Newsday. The report notes that Minister Ramnarine said the oil spills highlighted the need to lift Health, Safety, Security, and Environment standards higher as well as maintain and upgrade the company's aged infrastructure if the company is to survive in the long term. "This requires a culture change and it requires a shift in thinking. It requires us to become a high reliability organization. . . It requires that we become more mindful of our environment and our circumstances. We must always be mindful of the possibility of a disaster or an accident," the report quoted Minister Ramnarine as saying. Minister Ramnarine also noted the company's main objective was to increase oil production fast and he believed the keys to these were South West Soldado, which he hoped would be completed in the next 12 months, and on land, the report notes. Minister Ramnarine stated that for the past three years oil production had stabilised to around 81,000 barrels per day and expected it to increase to 90,000 when South West Soldado comes online. "But our potential for oil production in Trinidad and Tobago from Petrotrin is much more than it is right now. I believe that, if our plans are executed properly, we, nationally, in the next two years, should be able to take oil production back able to six digits, which is over 100,000 barrels of oil per day. That in itself requires a change in thinking and doing things differently. I've very sure that the collective intelligence in this country, if mobilised behind that objective, could achieve that 100,000 barrels of oil per day figure," Minister Ramnarine said, the report relays. The report discloses that Minister Ramnarine described Petrotrin as "the goose that laid the golden egg" that must be protected. Minister Ramnarine noted that jet fuel, "super gasoline" and diesel, which are highly subsidized by Government, come from Petrotrin's refinery, the report relays. It therefore supports all of the country's transportation industries, including the road systems as the bitumen used to pave the roads come from the refinery at Pointe-a-Pierre, the report notes. Minister Ramnarine added that LPG for cooking comes from Petrotrin which subsidises the gas for the entire country, making it the cheapest LPG in the Caribbean, thereby supporting the food and HOTEL industries, among others, the report says. About Petrotrin Petroleum Company of Trinidad and Tobago is the major state-owned oil company in Trinidad and Tobago. The company was established in 1993 by the merger of Trintopec and Trintoc, two state-owned oil companies. Petrotrin's main holdings are extensive, mature onshore fields located across southern Trinidad. Large areas have been leased out to small private producers who are able to make a profit on wells that are unprofitable for Petrotrin, giving it higher labor costs. The company operates a refinery at Pointe-Pierre, just north of San Fernando in south Trinidad. Most crude petroleum produced in Trinidad is exported without being refined. The refinery depends on imported crude (mostly from Venezuela), which is either used domestically or exported. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 8, 2013, Trinidad Express reports that production levels at Petroleum Company of Trinidad and Tobago (Petrotrin)'s Trinmar operations in Point Fortin have been affected by industrial action involving employees of the company's marine transport contractors. Petrotrin stated that it was informed of what it described as a stand-off between its marine contractors and their employees, who cited issues, including their current rates of remuneration, according to Trinidad Express. TRINIDAD & TOBAGO: Workers Get TT$187 Million Backpay ----------------------------------------------------- Trinidad and Tobago Newsday reports that payment in the sum of TT$187 million in backpay to 9,000 daily-paid workers of the Tobago House of Assembly has begun according to Chief Administrator, Raye Sandy. The payment to the workers covers the period 2011 to 2013, according to Trinidad and Tobago Newsday. A spokesman from the THA Department of Information told the news agency that the paperwork for two divisions -- Tourism and Transportation, and Community Development and Culture -- has been completed to enable payment to begin. Meanwhile, work continues on the processing of the arrears for the workers in the other eight divisions of the THA, the report notes. Thanking the employees for their patience while awaiting the completion of auditing and accounting to facilitate the payments, Sandy said there was sufficient funds to cover the backpay, the report adds. ================= V E N E Z U E L A ================= PROVINCIAL DE REASEGUROS: Fitch Affirms 'B' IFS; Outlook Negative ----------------------------------------------------------------- Fitch Ratings has affirmed Provincial de Reaseguros, C.A.'s (Pro Re) International Insurer Financial Strength (IFS) rating at 'B' with a Negative Outlook and its National IFS rating at 'A-(ven)' with a Stable Outlook. KEY RATING DRIVERS The affirmation of the ratings reflects Pro Re's improving profitability as a result of its good technical performance, with a combined ratio consistently below 100%, as well as its adequate capitalization and liquidity position. However, Pro Re's ratings are currently capped by Venezuela sovereign's long-term Issuer Default Rating (IDR) of 'B', while the Negative Outlook on the company's International rating is in line with the Negative Outlook on the sovereign ratings. This is because Pro Re has an important level of government debt holdings (24% of invested assets as of June 2014), and it does not have sufficient overseas business diversification to counterbalance this. Venezuela remains as the main market in the company's geographical distribution of gross written premiums (97% of total as of June 2014). Fitch has also considered the small scale of the company compared with global and regional reinsurance companies and the high potential for government intervention in the private sector. As of June 2014 Pro Re's high profitability is driven by its good combined ratio (77%) as a result of a continued strong growth rate in premiums (61%), even higher than its forecast (55%), and by a good performance on the net loss ratio (31% average in the last five years) offsetting a high expense structure. The company's operating margins improved to 16% in June 2014 from 13% in June 2013. On the other hand, Fitch notes a relevant participation of unrealized gains from revaluation of real estate assets (38% of total capital as of June 2014); however the capital position of the company benefits from a high profitability and the reinvestment of 100% of profits in the last years. Therefore, Pro Re's shows an improvement on its leverage ratios, although still above the median of higher rated reinsurance companies around the world. Fitch also notes the adequate liquidity position of the company, which increased during the last year due to the high growth dynamic in premiums. Fitch expects the company to sustain an adequate liquidity position as a result of a conservative allocation of its investment portfolio in fixed-income instruments (80% of invested assets as of June 2014), the absence of financial debt and the reasonable behavior of its retrocessionaires. Pro Re's liquid assets/net reserves and liquid assets/liabilities ratios were of 2.1x and 1.1x, respectively as of June 2014. RATING SENSITIVITIES Fitch considers that an upgrade is unlikely in the near future because Pro Re's International rating is currently rated at Venezuela's long-term IDR. Consequently, additional negative movements in the sovereign rating may trigger negative movements in Pro Re's ratings, while a change in the sovereign Outlook to Stable, could also lead to a Stable Outlook for the company. Key rating triggers that could lead to a downgrade include a sustained deterioration in Pro Re's operating performance with a combined ratio above 100%, a significant deterioration in its operating leverage ratio exceeding 3.5x, and a reduction in liquid asset/net reserves ratio to less than 1.0x. Meanwhile under a higher sovereign rating scenario, key rating triggers that could lead to an upgrade include a significant improvement in operating leverage ratio below 3.0x and a liquid asset/net reserves ratio that remain steadily above 2.0x. *********** 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 * * *