/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/141023.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 23, 2014, Vol. 15, No. 210 Headlines A N T I G U A & B A R B U D A ANTIGUA & BARBUDA: Storm Damage in Agriculture Sector Not Complete B E R M U D A LATIN AMERICAN AIRPORTS: S&P Lowers CCR to 'B'; Outlook Stable B R A Z I L AGROPECUARIA NOSSA: Moody's Cuts Corporate Family Rating to Caa3 COMPANHIA DE SANEAMENTO: Water Crisis Seen Worsening GENERAL SHOPPING: Fitch Affirms 'BB-' Issuer Default Ratings PETROLEO BRASILEIRO: Moody's Cuts Preferred Shelf Rating to (P)Ba1 C A Y M A N I S L A N D S CRC DIVERSIFIED: Shareholders' Final Meeting Set for Nov. 6 FLEXA INVESTMENT: Shareholders Receive Wind-Up Report HERMES BPK: Shareholders Receive Wind-Up Report LEGACY 600: Shareholder to Hear Wind-Up Report on Oct. 24 MERCER PARK I: Shareholder to Hear Wind-Up Report on Oct. 31 MERCER PARK II: Shareholder to Hear Wind-Up Report on Oct. 31 SORIN TACTICAL: Shareholders Receive Wind-Up Report SORIN TACTICAL MASTER: Shareholders Receive Wind-Up Report STIRO INVESTMENT: Shareholders Receive Wind-Up Report WEST TRADE: Shareholder to Hear Wind-Up Report on Oct. 24 C O L O M B I A COLOMBIA: Sells US$1 Billion of Bonds Overseas to Fund 2015 Budget D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: FA Says Time for Strong Haiti Trade J A M A I C A CARIBBEAN CEMENT: Jamaican Dollar Devaluation Hurting Firm JAMAICA: Chikungunya Affecting Corp. Area Tourism, Minister Says M E X I C O COBRE DEL MAYO: Fitch Affirms 'B' IDRs; Outlook Stable GRUMA SAB: S&P Revises Outlook to Pos., Affirms BB+ Corp. Rating P E R U ANDINO INVESTMENT: Fitch Affirms BB- IDRs, Revises Outlook to Neg. UNION ANDINA: S&P Assigns 'BB+' Rating to Proposed $625MM Notes UNION ANDINA: Moody's Assigns Ba2 Corporate Family Rating T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Concern Over Drop in Global Oil Prices - - - - - =============================== A N T I G U A & B A R B U D A =============================== ANTIGUA & BARBUDA: Storm Damage in Agriculture Sector Not Complete ------------------------------------------------------------------ Theresa Gordon at Antigua Observer reports that it has been a week since the passage of Tropical Storm Gonzalo and the damage associated with the storm is still being calculated. Storm Gonzalo tore roofs from homes, downed power lines and uprooted trees on Oct. 20, according to Antigua Observer. And, the agriculture sector, one of the hardest hit is among several sectors calculating its losses, the report relates. Agriculture Minister Arthur Nibbs told Antigua Observer media extension officers are still on the ground dialoguing with farmers on various parts of the island to get a view-point of how they were affected by the storm. A detailed assessment, Mr. Nibbs said will be ready some time this week. "In a matter of a week we should be able to give a preliminary assessment of the damage, that report will tell us what we need to do and of course the Ministry will be intervening and making sure that we can grant assistance to the farmers," Antigua Observer quoted Mr. Nibbs as saying. Mr. Nibbs, who is also the parliamentary representative for Barbuda, said the sister island suffered a similar fate as recorded on the mainland, the report relates. "It is a matter of trees being blown down and so on we are also doing an assessment on our farms," Mr. Nibbs said, the report notes. Storm Gonzalo, which dumped about an inch or rainfall on the island, destroyed mostly vegetable crops. According to agriculture officials, vegetable crops such as corn, banana, avocado and sweet peppers were destroyed, the report relays. The report discloses that they also warn the crop devastation will likely lead to shortage of some vegetables and fruits. The National Officer of Disaster Services (NODS), is also expected to provide a detail assessment to minister with responsibilities for national disasters, Samantha Marshall, the report adds. * * * As reported in the Troubled Company Reporter-Latin America on September 23, 2014, The Daily Observer said that Antigua & Barbuda could soon find itself in the company of Japan, Zimbabwe, and Greece, the countries with the highest national debts. In the January 2014 budget presentation, the former administration indicated that the nation's debt was 87 per cent of GDP, according to The Daily Observer. However, Prime Minister Gaston Browne has disputed the figure, deeming it to be as high as 130 per cent, the report noted. Minister Browne said while his government's increased borrowing is pushing up the nation's debt-to-GDP ratio, it is necessary to solve the country's problems, the report related. ============= B E R M U D A ============= LATIN AMERICAN AIRPORTS: S&P Lowers CCR to 'B'; Outlook Stable -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Bermuda-based Latin American Airports Holdings Ltd. (LAAH) to 'B' from 'B+'. S&P also lowered its issue-level rating on Aeropuertos Dominicanos Siglo XXI S.A's (Aerodom) $550 million senior secured notes to 'B' from 'B+'. LAAH owns the Dominican Republic-based airport operator, Aerodom, and guarantees its notes. The outlook is stable. "The downgrade reflects our expectations that LAAH will post weaker financial performance going forward," said Standard & Poor's credit analyst Veronica Yanez. "We are now projecting that LAAH will reach a funds from operations (FFO) interest coverage ratio of 1.40x and debt to EBITDA close to 6.0x over the next three years. As a result, we have revised our assessment of LAAH's financial risk profile to "highly leveraged." Our assessment of its business risk profile remains at "weak." On April 9, 2014, Fumisa reached an agreement with the Mexico City International Airport (AICM) over the Terminal 1 leasing contract dispute. Neither party received compensation under the terms of the settlement. Fumisa turned over the commercial areas of Terminal 1 and the operation of the car parking lot to AICM. Therefore, Aerodom is now LAAH's sole operating subsidiary". The rating on Aerodom's notes reflects S&P's view of LAAH's creditworthiness because it provides an unconditional and irrevocable guarantee of both principal and interest payments. S&P's equalization of the rating on the notes with the credit rating on LAAH reflects its view that the guarantee qualifies for the rating substitution treatment. =========== B R A Z I L =========== AGROPECUARIA NOSSA: Moody's Cuts Corporate Family Rating to Caa3 ---------------------------------------------------------------- Moody's Investors Service has downgraded Agropecuaria Nossa Senhora do Carmo S.A. ("GVO")'s corporate family rating and senior unsecured debt ratings to Caa3 from B3, as well as its senior secured debt ratings to Caa2 from B2. The outlook was changed to negative from stable. Ratings downgraded as follows: Issuer: Agropecuaria Nossa Senhora do Carmo S.A. - Corporate Family Ratings: to Caa3 from B3 Issuer: Virgolino de Oliveira Finance S.A. - $135mm senior secured notes due 2020: to Caa2 from B2 Issuer: Virgolino de Oliveira Finance Limited - $300mm senior unsecured notes due 2018: to Caa3 from B3 - $300mm senior unsecured notes due 2022: to Caa3 from B3 The outlook for all ratings is negative. Ratings Rationale The downgrade reflects the deterioration in GVO's liquidity and it follows the company's announcement that it hired financial advisory firm Moelis & Company and Lawyers Santos Neto Advogados and Kirkland & Ellis LLP to engage in actions to reinforce its capital structure. The low price environment observed in the sugar and ethanol sector over the last few quarters reduced credit availability for Brazilian producers. In the case of GVO, it restricted the access to the letters of credit it needs to maintain its working capital lines with Copersucar, implying the need for the paying back of part of these lines and, thus, a relevant additional pressure on the company's liquidity. On the operational side, the difficulties are consequence of a sharp drop in sugar prices and depressed ethanol prices, coupled with the low availability of sugar cane, given the drought that hit Brazilian Center-south producing region. The recovery in sugar prices, initially expected on the back of a reduced 2014/15 harvest coming from Brazil, has not materialized and it will translate into lower than expected Revenues and EBITDA for GVO. GVO's rating is still supported by the good medium-term prospects for the sugar-ethanol industry as a consequence of constantly increasing consumption and a less steady global supply growth, despite recent build-up in global inventories. On the other hand, the company's ratings have historically reflected its weak liquidity profile, high leverage and relatively small size when compared to large Brazilian companies operating in this industry. Although Virgolino benefits from the advantages of operating in one of the world's highest yielding sugar cane regions, the rating reflects its raw material concentration in the state of Sao Paulo, which increases the risks related to plant diseases and weather- related events. Moreover, the region's good climate and better soil are reflected in its higher lease costs, which translate into a high operational leverage that negatively affects the company's performance in low production years. The negative outlook reflects the company's very tight liquidity profile and the likelihood of a debt restructuring over the short term. Accordingly, a downgrade would be triggered by any capital structure adjustment that translates into missed or delayed disbursement of interest and/or principal, or a distressed exchange. Although unlikely in the short term, the ratings could be upgraded if the company is able to strengthen its capital structure without defaulting in any of its financial obligations and improve its liquidity profile. Headquartered in Sao Paulo, Brazil, Agropecuaria Nossa Senhora do Carmo S/A ("Virgolino" or "GVO") is a privately-held sugar and ethanol producer, controlled by the Oliveira family. The company has a sugarcane crushing capacity of 12.0 million tons per harvest and posted revenues of BRL 1.5 billion (approximately USD 629 million converted by the average exchange rate) for the fiscal year ending in April, 2014. COMPANHIA DE SANEAMENTO: Water Crisis Seen Worsening ---------------------------------------------------- Vanessa Dezem at Bloomberg News reports that Sao Paulo residents were warned by a top government regulator to brace for more severe water shortages as President Dilma Rousseff makes the crisis a key campaign issue ahead of this weekend's runoff vote. "If the drought continues, residents will face more dramatic water shortages in the short term," Vicente Andreu, president of Brazil's National Water Agency and a member of Rousseff's Workers' Party, told reporters in Sao Paulo, Bloomberg News notes. "If it doesn't rain, we run the risk that the region will have a collapse like we've never seen before," Mr. Andreu later told state lawmakers, Bloomberg News discloses. Bloomberg News relays that the worst drought in eight decades is threatening drinking supplies in South America's biggest metropolis, with 60 percent of respondents in a Datafolha poll published on Oct. 21, saying their water supplies were restricted at least once in the past 30 days. Three-quarters of those people said the cut lasted at least six hours, Bloomberg News notes. President Rousseff, who is seeking re-election in the Oct. 26 election against opposition candidate Aecio Neves, is stepping up her attacks of Sao Paulo state's handling of the water crisis, saying in a radio campaign ad that Governor Geraldo Alckmin was offered federal support and refused, notes Bloomberg News. Mr. Neves, who polls show is statistically tied with President Rousseff, and Alckmin are both members of the Social Democracy Party, known as PSDB. Mr. Neves said on his website that ANA is being used by the PT for it's own purposes. "The agency could have been a much better partner to Governor Alckmin," Bloomberg News quoted Mr. Neves as saying. GDP Mr. Neves campaign officials didn't immediately respond to an e- mailed request for comment on ANA chief's accusations. With more than 40 million people and over 96,000 square miles (250,000 square kilometers), Sao Paulo state is geographically bigger than the U.K. It's responsible for almost a third of Brazil's gross domestic product. Mr. Andreu, who served as secretary of water resources under Rousseff's predecessor Luiz Inacio Lula da Silva, criticized the state government's handling of the water crisis, saying officials haven't communicated with water regulators on key issues, Bloomberg News notes. Companhia de Saneamento Basico do Estado de Sao Paulo-SABESP, the Sao Paulo state-run water utility, and Alckmin's office declined to comment. "Sabesp's responses have been small -- they should have already taken huge steps," Mr. Andreu said, adding that he told the state's water secretary in August that "we can't keep this up; we're not alerting the population of the seriousness of this situation." Sabesp is struggling to find new ways to supply greater Sao Paulo after the drought turned its Cantareira reservoir, which serves half of Sao Paulo, into a dried-up bed of cracked earth, Bloomberg News relays. What's left of the four-lake complex are sediment- filled pools in the center -- so-called dead reserves -- that were previously untappable until Sabesp built 3 kilometers (1.9 miles) of pipes to drain the water, Bloomberg News says. Water levels fell to 3.3 percent of capacity at Cantareira and 8.5 percent at Sabesp's Alto Tiete reservoir, according to the company's website. Sabesp, formally known as Cia. de Saneamento Basico do Estado de Sao Paulo, is Latin America's largest publicly traded water company. The stock has plunged 27 percent this year. About SABESP Companhia de Saneamento Basico do Estado de Sao Paulo-SABESP provides basic and environmental sanitation services; and supplies treated water on a wholesale basis to residential, commercial, industrial, and governmental customers in the state of Sao Paulo. * * * As reported in the Troubled Company Reporter-Latin America on May 27, 2014, Fitch Ratings has affirmed Companhia de Saneamento Basico do Estado de Sao Paulo's (Sabesp) foreign currency and local currency Issuer Default Rating (IDR) at 'BB+' and its National long-term rating at 'AA(bra)'. GENERAL SHOPPING: Fitch Affirms 'BB-' Issuer Default Ratings ------------------------------------------------------------ Fitch Ratings has affirmed the ratings of General Shopping Brazil (GSB) and its fully owned subsidiaries: General Shopping Brasil S.A. (GSB): -- Foreign currency Issuer Default Rating (IDR) at 'BB-'; -- Local currency IDR at 'BB-'; -- National scale ratings at 'A-(bra)'. General Shopping Finance Limited (GSF): -- Foreign currency IDR at 'BB-'; -- USD250 million perpetual notes at 'BB-'. General Shopping Investment Limited (GSI): -- Foreign currency IDR at 'BB-'. -- USD150 million subordinated perpetual notes at 'B'. Simultaneously, Fitch has withdrawn the IDRs for General Shopping Finance Limited (GSF) and General Shopping Investment Limited (GSI). The Rating Outlook for GSB has been revised to Negative from Stable. The Negative Outlook reflects the weakening of the company's capital structure driven by high capex levels during the last two years resulting in net leverage ratios around 8.5x, which is above expectations previously incorporated in the ratings. Execution risks remain as the company seeks to lower its adjusted net leverage ratio to levels around 6x through the divesture of non- core assets and lowering capex levels during the next 24 months. The ratings continue to reflect GSB's important position in the shopping markets in the southern and southeastern regions of Brazil, its stable and predictable cash flow generation, as well as its low working capital requirements with leases responsible for most maintenance expenses, adequate liquidity position and manageable debt amortization schedule. GSB's credit ratings are constrained by its high leverage, limited geographical and revenue diversification. KEY RATING DRIVERS: Business Position Support Stable Margins: GSB's ratings reflect the company's position as one of the largest shopping center operators in Brazil's southeastern and southern regions with participation in 18 shopping centers and a total owned gross leasable area (GLA) of 270,000 square meters as of June 30, 2014. Fitch expects GSB to maintain stable EBITDA margins of around 70% in 2014 and 2015. The company maintains a high occupancy level of 96.4% as of June 30, 2014. This level has remained stable during the last four years. The company's revenue per square meter increased 12.5% during first-half 2014 versus the same period in 2013. High Leverage above Expectations: GSB's net leverage is high and weak for the rating category; the company is in the process of divesting some assets, which should support a reduction in leverage during the second half of 2014. GSB's total debt increased to BRL1.6 billion, as of June 30, 2014, from BRL1.1 billion in June 2012. The company's net leverage ratio, as measured by net debt/EBITDA, was 8.4x as of June 30, 2014. This represents a significant increase from 5.9x in June, 2012. During third-quarter 2014, the company sold its 50% stake in Santana Parque Shopping and its 100% stake in Top Center. Total combined proceeds from both transactions were around BRL290 million. Manageable Liquidity: GSB's liquidity is viewed as adequate with an average debt tenor in excess of five years. The company's current cash balance is sufficient to meet all debt payments through 2015. As of June 30, 2014, GSB had BRL248 million of cash and marketable securities, which covers short-term debt by 1.4x. The company's cash position is anticipated to be boosted with the proceeds obtained from recent asset divesture. GSB maintains approximately 33% of its total GLA as unencumbered assets. The estimated market value of these assets is approximately BRL1 billion, covering 1.4x its level of unsecured debt, which provides an additional source of liquidity. GSB's total investment property value is estimated at about BRL3.2 billion, as of June 30, 2014. The company's cash position and level of unencumbered assets partially offset its relatively weak levels of interest coverage, which has consistently been around 1x during the last three years. Business Fundamentals and Limited Diversification Incorporated: The ratings factor in a positive view on the Brazilian mall industry's fundamentals in the medium to long term, which include Brazil's positive demographic changes and a growing middle class. GSB's top five malls represent approximately 50% of its total net operating income (NOI). This degree of concentration is a rating limitation. The company's substantial FX risk is incorporated in its ratings. GSB's exposure to foreign exchange risk is material with approximately 45% of the company's total debt being USD denominated. RATING SENSITIVITIES: Considerations that could lead to a negative rating action A negative rating action could result from the company's failure to reduce its net leverage during the next 12 month period ended in June 2015 due to some combination of lower cash flow generation (EBITDA), and/or incremental debt associated with new developments. A weakening of the company's liquidity position would also hinder credit quality and could result in a negative rating action. Considerations that could lead to a positive rating action The company capacity to maintain adequate liquidity with a cash position of about BRL350 million and its net leverage trending toward the 6.5x during the next 12 month period ended in June 2015 could result in revising the Negative Outlook. PETROLEO BRASILEIRO: Moody's Cuts Preferred Shelf Rating to (P)Ba1 ------------------------------------------------------------------ Moody's Investors Service downgraded Petrobras S.A.'s (Petrobras) global foreign currency and local currency debt ratings to Baa2 from Baa1. The downgrade reflects Petrobras' high financial leverage and Moody's belief that it is only likely to decline significantly well after 2016, contrary to our original expectations, given downward pressures on oil prices and the local currency as well as high capex commitments. The outlook remains negative. "While Petrobras has been relatively successful in executing on its ambitious capital program and has delivered on aggressive production targets, leverage continues to grow in 2014 given mainly its inability to pass through costs related to imported oil products, local currency devaluation, and an aggressive capex program", said Nymia Almeida, a Vice President-Sr. Credit Officer at Moody's. Downgrades: Issuer: Petrobras Global Finance B.V. Subordinate Shelf (Foreign Currency), Downgraded to (P)Baa3 from (P)Baa2 Senior Unsecured Shelf (Foreign Currency), Downgraded to (P)Baa2 from (P)Baa1 Senior Unsecured Regular Bond/Debenture (Foreign Currency), Downgraded to Baa2 from Baa1 Issuer: Petrobras International Finance Company Senior Secured Shelf (Foreign Currency), Downgraded to (P)Baa1 from (P)A3 Subordiante Shelf (Foreign Currency), Downgraded to (P)Baa3 from (P)Baa2 Senior Unsecured Shelf (Foreign Currency), Downgraded to (P)Baa2 from (P)Baa1 Senior Unsecured Regular Bond/Debenture (Foreign Currency), Downgraded to Baa2 from Baa1 Issuer: Petroleo Brasileiro S.A. - PETROBRAS Issuer Rating (Local Currency), Downgraded to Baa2 from Baa1 Preferred Shelf (Foreign Currency), Downgraded to (P)Ba1 from (P)Baa3 Preferred Shelf (Foreign Currency), Downgraded to (P)Ba2 from (P)Ba1 Subordinate Shelf (Foreign Currency), Downgraded to (P)Baa3 from (P)Baa2 Senior Secured Shelf (Foreign Currency), Downgraded to (P)Baa2 from (P)Baa1 Senior Unsecured Shelf (Foreign Currency), Downgraded to (P)Baa2 from (P)Baa1 Outlook Actions: Issuer: Petrobras Global Finance B.V. Outlook, Remains Negative Issuer: Petrobras International Finance Company Outlook, Remains Negative Issuer: Petroleo Brasileiro S.A. - PETROBRAS Outlook, Remains Negative Ratings Rationale Through June 30, Petrobras' debt (Moody's adjusted) reached USD 170 billion, a USD 25 billion increase from December 2013, mainly as a consequence of FX devaluation, losses in downstream related to the gap between international and local prices for gasoline and diesel and funding for capital expenditures. The company's inability to increase local prices for oil products vis-a-vis international prices has been causing major losses in downstream in the last few years; the government has prevented increases in oil products in order to control inflation. The current lower international prices for oil products, if sustained in the medium term, will be beneficial to Petrobras' downstream business; however, lower crude oil prices will negatively affect the upstream operation. In turn, although capex may decline in 2015 based on what the company submitted to the federal government for Congress' approval (about R$ 87.6 billion, equivalent to about USD 37.9 billion in capex expected for 2015, down from approximately USD 41 billion expected in 2014), Moody's believes that it will not be enough to allow for an accelerated reduction in debt in a context of higher foreign exchange rate, which places pressure on debt and interest metrics. In this market environment, deleveraging will take longer than anticipated. In the last twelve months ended in June 2014, leverage metrics have increased steadily and are elevated, with adjusted total debt/EBITDA of 5.3x, debt/proved and developed reserves of $21.88/BOE, and debt/daily production approaching $74,000/BOE, the highest among its peer group of integrated and national oil companies. Petrobras continues to increase oil production and so far in 2014 its pre-salt production in particular reached 532 thousand bpd in September, from 344 thousand bpd in December 2013; total crude oil production reached 2.1 million bpd in September, from 1.9 million bpd in December 2013. It is also positive that, in the medium term, Petrobras' refining capacity will increase with the start of RNEST and Comperj refineries, expected for 2015 and 2016, respectively, reducing the need for product imports in about 395 mbbl. However, funding the capex necessary to reach a target of about 4 million bpd by 2020 has become more difficult given elevated leverage, which adds to the already high execution risk related to timely delivery of oil drilling and production equipment given the need to meet local content requirements. Petrobras' Baa2 ratings are supported by its large-scale reserve base and dominance in the Brazilian oil industry with a leading position in one of the industry's most prospective offshore areas; by its sizeable new pre-salt discoveries and renown technological expertise; and by its growing production. In addition, the company's continuous focus on project execution and cost reduction should ease some of the cost overrun issues and delays it has experienced in the past. Petrobras' Baa2 ratings also reflects government support and the impact of joint-default analysis. Underlying the ratings downgrade, Moody's has lowered Petrobras' baseline credit assessment to baa3 from baa2, reflecting its high leverage profile. We are maintaining assumptions of high support from the government of Brazil (rated Baa2 with a negative outlook) and moderate dependence/default correlation between Petrobras and the government. "While government support continues to provide one notch of uplift on the BCA, we note increasing linkages between Petrobras and the sovereign. The government has been playing a larger oversight role in Petrobras' operations, strategic direction and offshore development." "We are maintaining a negative outlook on Petrobras' ratings given the probability that the company's leverage may increase further due to lower international oil prices and limited flexibility to reduce cost, with negative impact on margins. In this environment, execution on the company's capital program and achievement of targeted production growth could be negatively impacted." "Petrobras' ratings could be downgraded if financial leverage increases and is sustained with debt/EBITDA above 5x or if production growth falls short of targets. A downgrade of Brazil could also pressure the Petrobras' ratings." "We do not see momentum for an upgrade of Petrobras' ratings in the near-to-medium term. In the longer-term it could be upgraded as the company lowers if debt leverage and delivers on rising and profitable production and reserves growth, in conjunction with a higher rating on Brazil's government debt." ========================== C A Y M A N I S L A N D S ========================== CRC DIVERSIFIED: Shareholders' Final Meeting Set for Nov. 6 ----------------------------------------------------------- The shareholders of CRC Diversified Global Asset Management Credit Fund, Ltd. will hold their final meeting on Nov. 6, 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 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 FLEXA INVESTMENT: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Flexa Investment Ltd. received on Oct. 20, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: MBT Trustees Ltd. Telephone: 945-8859 Facsimile: 949-9793/4 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands HERMES BPK: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of Hermes BPK Funds North America SPC received on Oct. 21, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Hermes BPK Limited Lloyds Chambers, 1 Portsoken Street London, E1 8HZ LEGACY 600: Shareholder to Hear Wind-Up Report on Oct. 24 --------------------------------------------------------- The shareholder of Legacy 600 NO.1 -1089 Limited will hear on Oct. 24, 2014, at 8:45 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 MERCER PARK I: Shareholder to Hear Wind-Up Report on Oct. 31 ------------------------------------------------------------ The shareholder of Mercer Park CLO Investment Fund I, Ltd will hear on Oct. 31, 2014, at 8:45 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 MERCER PARK II: Shareholder to Hear Wind-Up Report on Oct. 31 ------------------------------------------------------------ The shareholder of Mercer Park CLO Investment Fund II, Ltd. will hear on Oct. 31, 2014, at 9:00 a.m., the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Intertrust SPV (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 SORIN TACTICAL: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Sorin Tactical Real Estate Offshore Fund Ltd received on Oct. 20, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Daniella Skotnicki Telephone: (345) 815 1861 Facsimile: (345) 949-9877 SORIN TACTICAL MASTER: Shareholders Receive Wind-Up Report ---------------------------------------------------------- The shareholders of Sorin Tactical Real Estate Master Fund Ltd received on Oct. 20, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Daniella Skotnicki Telephone: (345) 815 1861 Facsimile: (345) 949-9877 STIRO INVESTMENT: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Stiro Investment Ltd. received on Oct. 20, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: MBT Trustees Ltd. Telephone: 945-8859 Facsimile: 949-9793/4 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands WEST TRADE: Shareholder to Hear Wind-Up Report on Oct. 24 --------------------------------------------------------- The shareholder of West Trade Funding CDO II Ltd. will hear on Oct. 24, 2014, at 8:30 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 =============== C O L O M B I A =============== COLOMBIA: Sells US$1 Billion of Bonds Overseas to Fund 2015 Budget ------------------------------------------------------------------ Andrea Jaramillo at Bloomberg News reports that Colombia sold US$1 billion of bonds in overseas markets to fund next year's budget, the Finance Ministry said. The Andean nation sold US$500 million more of its dollar debt maturing in 2024 to yield 3.67 percent, the ministry said in an e- mailed statement obtained by Bloomberg News. Colombia also sold US$500 million more of its bonds due in 2044 to yield 4.85 percent, according to Bloomberg News. Demand totaled US$7.7 billion, or 7.7 times the amount offered, which the government said was a record, Bloomberg News notes. "While investors are pessimistic about weak global growth, they recognize that Colombia is an attractive place to put their money," Finance Minister Mauricio Cardenas said in the statement obtained by Bloomberg News. With Oct. 22's offering, Colombia needs to sell US$2 billion more to complete its plan to issue US$3 billion in overseas debt for its 2015 funding needs, Bloomberg News relays. The government sold US$2 billion of the 30-year bonds in January, completing its needs for this year, Bloomberg News says. Citigroup Inc. and Goldman Sachs Group Inc. managed the sale, according to a prospectus filed with the U.S. Securities and Exchange Commission, Bloomberg News adds. =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: FA Says Time for Strong Haiti Trade --------------------------------------------------------- Dominican Today reports that the governments of the Dominican Republic and Haitian will be starting healthy, solid and stable trade relations, creating the legal framework to guarantee investment security, for which there will be a Summit of business leaders and officials from both nations. Foreign Affairs Minister Andres Navarro, who made the announcement, said he'll visit Haiti along with Dominican entrepreneurs next week, for both governments to serve as a bridge and guarantor in a first step leading to an official agreement, according to Dominican Today. "I think that's the first step we must take, and then create the conditions in both countries for a free trade agreement, and for that we have to build trust between the two countries in trade and investment," Minister Navarro said in his visit to newspaper El Nacional. The report notes that Minister Navarro said to make trade official the conditions should be created for healthy and strong trade relations in addition to a legal framework that ensures investment safety. "That's why we will visit Haiti with a Dominican Government Commission to hold a gathering between Haitian and Dominicans entrepreneurs during an entire day," Minister Navarro said, adding: "We're going to discuss what could be an agenda in trade and investment between the two countries," the report notes. ============= J A M A I C A ============= CARIBBEAN CEMENT: Jamaican Dollar Devaluation Hurting Firm ---------------------------------------------------------- RJR News reports that Caribbean Cement Company Limited said its improved revenues are being undermined by escalating costs due to the depreciation of the Jamaican dollar. This, the company said, has also affected its parent, Trinidad Cement Limited, (TCL), according to RJR News. During the period January to September, Caribbean Cement's revenues totaled J$10.7 dollars, up from J$8.8 billion last year, according to RJR News. The report notes that domestic and export cement sales volumes were up 2% and 7% respectively, while clinker sales grew eleven fold. The company satisfied the contract to supply 80 tons of clinker to Venezuela under the PetroCaribe Agreement, the report relates. Trinidad Cement Limited's Revenue In the meantime, Trinidad Cement Limited is reporting that during the January to September period revenue grew by J$97 million or 6.5%, the report says. This was driven by growth in the domestic cement markets in Trinidad and Jamaica, the report discloses. In addition, concrete sales improved by 12.3% while price increases were implemented in Trinidad & Tobago, Jamaica and Guyana, the report says. Headquartered in Rockfort Kingston, Jamaica, Caribbean Cement Company Limited manufactures and sells cement. The company is a subsidiary of Trinidad Cement Limited. * * * As reported in the Troubled Company Reporter-Latin America on Aug. 18, 2014, RJR News disclosed that company said it racked up a loss of $89 million in the three months to the end of June, compared to a $359 million profit in the corresponding period a year ago. The report noted that Caribbean Cement said the loss was due to the shutdown of a clinker line to facilitate maintenance work. According to a TCRLA report on Aug. 7, 2013, RJR News said that Caribbean Cement Company Limited suffered a consolidated loss of J$137 million for the first six months of 2013 down from J$1.2 billion during the corresponding period last year, according to RJR News. The report related that the loss resulted from J$701 million of non-cash foreign exchange losses compared to J$136 million in 2012. JAMAICA: Chikungunya Affecting Corp. Area Tourism, Minister Says ---------------------------------------------------------------- RJR News reports that the Chikungunya virus is said to be taking a toll on some areas of Jamaica's tourism sector. The report notes that properties in the Corporate Area (Kingston & St. Andrew) have been particularly affected, according to impacted Tourism Minister Dr. Wykeham McNeil. Minister McNeil told RJR News that, with a number of employees being out sick with the virus, there has been a fall in productivity in some of these city-based hotels. Nevertheless, the Tourism Minister expressed optimism that the industry will "weather the storm and move on," according to RJR News. The report relates that the Chikungunya outbreak in Jamaica has been largely concentrated in the eastern section of the island, which has left the major tourist resorts on the north coast and the western end largely unscathed. As reported in the Troubled Company Reporter-Latin America on Oct. 22, 2014, RJR News said that the impact of the Chikungunya virus on the work force in Jamaica and elsewhere in the region was discussed at the just concluded 18th American Regional Meeting of the International Labour Organisation (ILO) in Lima, Peru. TCRLA reported on Oct. 9, 2014, that RJR News disclosesd Senator Kavan Gayle, President-General of the Bustamante Industrial Trade Union (BITU) wanted a study to be done to determine the full impact of the Chikungunya outbreak on the productive sector. Senator Gayle said some affected workers have not been able to receive the required medical attention, "have not been able to gain the medical attention because of the (huge) influx of persons . . . " putting an added strain on the resources of the medical services. This unsatisfactory situation was "creating havoc amongst the workforce," Senator Gayle added. =========== M E X I C O =========== COBRE DEL MAYO: Fitch Affirms 'B' IDRs; Outlook Stable ------------------------------------------------------ Fitch Ratings has affirmed the long-term foreign- and local- currency Issuer Default Ratings (IDRs) of Cobre del Mayo S.A. de C.V. (CdM) at 'B', and the rating for its senior unsecured 10.75% notes due 2018 at 'B/RR4'. The Rating Outlook is Stable. KEY RATING DRIVERS Credit-Neutral Acquisition: CdM's parent companies, Frontera Copper Corporation, S.A.P.I. de C.V. (FCC) and Frontera Cobre del Mayo Mexico S.A. de C.V. (FCDM), demonstrated commitment to preserving CdM's sound capital structure by purchasing 100% of the equity of Kupari Holdings S.A. (KH) for USD220 million on Oct. 13, 2014 and contributing this asset to CdM. KH is the parent company of Kupari Metals S.A.'s (KM) flotation plant adjacent to the Piedras Verdes mine. This transaction fully integrates KM into CdM and will enhance the company's profile as a combined entity through a variety of operational synergies while also diversifying operational risk across two processes and two different copper products. Combined Performance: CdM exhibits a robust capital structure for its rating category. The integration of the flotation plant into CdM will increase total debt to around USD320 million from USD244 million on June 30, 2014, and will decrease total debt to EBITDA to around 3.0x from 3.2x for the LTM to June 30, 2014, on a pro forma basis. Fitch's Base Case indicates this ratio will reduce to around 2.4x in 2015 once the full-year's production of copper concentrates of around 50,000 metric tons is realized. Fitch expects CdM to generate EBITDA of around USD90 million in 2014 including incremental benefit during the last quarter from KM, and USD137 million in 2015 that fully incorporates the copper concentrate sales from the flotation plant. Fitch's Base Case projections for CdM use its mid-cycle commodity price assumptions for copper of USD3.08/lb in 2014, USD2.95/lb in 2015 and 2016, and USD2.72/lb thereafter. Cash flow from operations (CFFO) is expected at around USD45 million in 2014, although free cash flow (FCF) is expected to turn negative due to higher capex of around USD50 million for the year. No Upstream Dividends to Service Acquisition Debt: Historically, CdM has not paid dividends. No dividend payments are required going forward to service any acquisition-related debt at the parent company level. The funds to buy KM were provided by the group's ultimate parent, Invecture Group, S.A. de C.V., and allowed FCC and FCDM to purchase KM on CdM's behalf. FCDM previously committed to sell copper ore to KM and KM committed to purchase and process copper oxide ores for an initial fixed term of 10 years in Feb. 2012. This required KM to build and operate a flotation plant adjacent to Piedras Verdes, which CdM now fully owns and operates as a result of its parent companies' transactions. KM began operating the flotation plant in March 2013, producing an average 37.6 metric tons per day (tpd) of copper in the form of a concentrate. Single-Mine Exposure: CdM conducts its mining operations entirely out of Mexico's third largest copper mine, Piedras Verdes. This heightens the risk of production stoppages due to accidents, labor unrest and weather events. On a normal basis, the mine operates 24 hours a day, 365 days a year. The mine is closely located to two main towns in the state of Sonora, Alamos and Navojoa. The Piedras Verdes mine is rich in copper deposits, but does not have any significant by- products to offset the volatility of copper prices. As a result, its fortunes are directly linked to the dynamics of copper demand. CdM had a cash cost (C1) of USD1.99/lb of copper during 2013 and USD1.97/lb in the second quarter of 2014. This calculation places CdM in the second quartile of the cash curve when excluding by- product credits, and third quartile when including by-product credits. Stable FCF Generation: CdM's performance in 2013 exceeded Fitch's Base Case expectations with revenues of USD252 million and EBITDA of USD92 million, compared to expectations of USD247 million and USD85 million, respectively. This was achieved despite the operational difficulties in the copper leaching process encountered during the last quarter of 2013 that lowered copper output, exacerbated by heavy rains. These heap leach issues were resolved during April 2014. CdM has continued to generate positive FCF since 2010, with FCF of USD17 million in 2013 compared to USD37 million in 2012. Copper prices were higher at around $3.60/lb in 2012 compared to around $3.34/lb in 2013. This level of FCF generation was the result of the company having invested heavily in the capex- intensive start-up years of 2009 and 2010, at USD82 million and USD76 million, respectively. Total capex was manageable in 2013 at USD42 million, with maintenance capex expected at around USD10- USD15 million a year. Sufficient Liquidity: CdM's cash balance as of June 30, 2014 was USD21 million compared to short-term debt of USD6 million, providing headroom. Total debt was USD244 million for the period, with the majority consisting of the company's USD225 million 10.75% notes due 2018. The remaining debt mainly relates to capital leases with Caterpillar. The company's stable operational track record since 2010 and increased sales volumes over the next few years as a result of the flotation plant acquisition should allow for a successful refinancing of CdM's 10.75% senior unsecured notes due 2018. Anticipated higher interest rates may possibly complicate the refinancing process, but should not pose an obstacle if the company continues to perform satisfactorily and continues to replenish and extend its mine life, currently at 16 years. CdM also has a committed credit line of USD100 million with Banco Azteca, to be used as a guarantee for debt service payments to creditors, should the company require it. RATING SENSITIVITIES Single Commodity and Asset Exposure: Events such as prolonged strikes or mine closures that would halt or significantly lower copper production, without sufficient business interruption insurance, could lead to a downgrade. Large debt-funded acquisitions may also pressure the ratings. CdM's ratings could also be downgraded if copper prices decline significantly below Fitch's long-term price of USD2.72/lb and net debt to EBITDA increases above 4.5x on a sustained basis. Risk Diversification is Key: Manageable, equity-funded acquisitions of other mines to dissipate single-mine risk and diversifying CdM's commodity profile could lead to an upgrade, should leverage ratios remain consistently at around 2.5x total debt to EBITDA on a pro forma basis. GRUMA SAB: S&P Revises Outlook to Pos., Affirms BB+ Corp. Rating ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Gruma S.A.B. de C.V. to positive from stable. Also, S&P affirmed its 'BB+' corporate and debt ratings on the company. The recovery rating on the bonds remains unchanged at '3'. "The outlook revision reflects our view that Gruma will continue to improve its operating performance and credit metrics while pursuing a prudent financial policy on acquisitions and dividend payments amid low debt levels," said Standard & Poor's credit analyst Laura Martinez. S&P will also monitor the expected sale of Molinera de Mexico, Gruma's wheat flour operations, and the company's use of proceeds, which could also further strengthen its key credit metrics in the next few quarters. ======= P E R U ======= ANDINO INVESTMENT: Fitch Affirms BB- IDRs, Revises Outlook to Neg. ------------------------------------------------------------------ Fitch Ratings has affirmed at 'BB-' the Long-term Foreign Currency (FC) and Local Currency (LC) Issuer Default Ratings (IDR) of Andino Investment Holding S.A.A. (AIH). Fitch has also affirmed AIH's senior unsecured notes at 'BB-'. The Rating Outlook has been revised to Negative from Stable. The Negative Outlook reflects AIH's weaker than expected results due to deterioration in the company's business position for imported products at the Callao port and sluggish economic activity. These factors have resulted in AIH having leverage that is higher than previously projected by Fitch. AIH gross adjusted leverage ratio was 5.5x, as of June 30, 2014, which was above Fitch's projection of leverage in the range of 4.5x during 2014. KEY RATING DRIVERS Good Market Position: AIH has leading positions in the logistic and maritime industries through its subsidiaries Neptunia and Cosmos, which combined represent 79% of the company's consolidated LTM ended June 30, 2014 EBITDA. AIH maintains a well-diversified customer base with long-term business relationships and storage facilities strategically located next to the Lima-Callao port and airports. During the past year, Neptunia faced increasing competition on temporary storage of import containers, while Cosmos' performance improved due to a positive trend for fleet and off shore barges operations for oil companies. Stagnant Performance AIH's consolidated revenues were USD226 million during the LTM ended June 30, 2014, which was similar to 2013, while its EBITDA slipped to USD27 million from USD25 million and its margin contracted to 10.9% from 11.8%. The company's stagnant performance compared unfavorably with the past four years when revenues were growing by around 15% per year. Economic activity in Peru fell short of expectations and import activity stagnated. Negatively, AIH's business position weakened in key ports such as Callao during 2014. During the first half of 2014, the overall import activity at that port fell by 2%, while AIH's import containers at the Callao port fell by 20%. High Leverage and Negative FCF: The company's gross adjusted debt/EBITDA ratio and its net debt/EBITDA ratio were 5.5x and 4.9x, respectively, for the LTM ended June 30, 2014. AIH's total debt was USD136 million at the end of June due to its issuance of USD115 million of notes during November 2013. Fitch expects deleveraging to occur from cash flow growth rather than debt reductions. Fitch's revised Base Case projections result in a gross adjusted leverage ratio of around 5.0x in 2014 and 4.5x from 2015 forward. Free cash flow is projected to be neutral to mildly negative in 2014 and 2015 due to estimated USD10 million per year of capital expenditures. Tight Liquidity: As of June 30, 2014, AIH had USD15.3 million of cash, which was roughly equivalent to its short-term debt obligations of USD15.8 million. The company's interest coverage ratio, measured as EBITDA/interest expenses, was extremely tight at 1.3x for the LTM ended in June 2014. After the bond issuance in 2013, about 80% of the company's debt matures during 2020. Positively, AIH maintains about USD292 million of unencumbered assets, which could be borrowed against in case liquidity is under pressure. Joint-Venture's Infrastructure Projects Delivered as Expected: AIH's 50% owned joint ventures, Aeropuertos Andinos del Peru (AAP), which operates five airports in Peru's southern region, and Terminales Portuarios Euroandinos (TPE), which operates the port of Paita, have recently completed investments projects. The debt of these projects is non-recourse to AIH and/or has been co-funded by the Peruvian government. In the near term, no dividends are projected to be received from them. Positively, AIH has the potential to improve its service operations through synergies with them. On July 2014, Sociedad Aeroportuaria Kuntur Wasi, another 50%/50% joint venture owned by the company was granted a 40 year- concession to build and operate an international airport at Cuzco (Chichero) for USD470 million under a seven-year construction term. This project will also be funded with non-recourse debt. RATING SENSITIVITIES: Factors that could result in a negative rating action include gross adjusted leverage above 4.5x. Increased competition that would lead to a continued decline of the company's business positions at key ports would also be viewed negatively, as would delays and/or higher capital needs for infrastructure projects sponsored by AIH. An Outlook revision to Stable includes reduction in leverage levels toward 4.5x (gross adjusted leverage) in the next 12-18 months along with improvement on operational results and adequate liquidity. More geographic diversification and successful development and/or consolidation in infrastructure projects that would improve the stability and amount of cash flow generated could lead to a ratings upgrade. UNION ANDINA: S&P Assigns 'BB+' Rating to Proposed $625MM Notes --------------------------------------------------------------- Standard & Poor's Rating Services assigned its 'BB+' ratings to Union Andina de Cementos S.A.A. y Subsidiarias (UNACEM) and its proposed $625 million notes. The outlook is stable. UNACEM is the leading and largest cement company in Peru. It is fully vertically integrated, which results in above-average profitability, and it has significant market potential thanks to Peru's growing economy. All these factors are the basis for S&P's "fair" business risk profile assessment. UNACEM's debt-financed acquisitive strategy, increasing leverage, and "adequate" liquidity support S&P's assessment of the company's "significant" financial risk profile. UNACEM is the largest cement company in Peru annually producing 7.6 million tons of cement and holds a 50% national market share in Peru but it's concentrated in the central region of the country. This includes Lima, whose economy is the most dynamic and where over 50% of the Peruvian population resides. The city enjoys one of highest GDP growth rates in Latin America estimated at between 3% and 4% for year-end 2014. Moreover, UNACEM has adequate operating efficiency thanks to its low and flexible cost base and full vertical integration--from owned limestone quarries to power generation and distribution network--resulting in above- average profitability. For the last 12 months as of June 30, 2014, the company's EBITDA margin was 38%, which was significantly above the 25% average for cement companies across the globe. UNION ANDINA: Moody's Assigns Ba2 Corporate Family Rating --------------------------------------------------------- Moody's Investors Service has assigned a first-time Ba2 corporate family rating (CFR) to Union Andina de Cementos S.A.A. ("Unacem"). At the same time, Moody's has assigned a Ba2 rating to Unacem's proposed USD 700 million senior unsecured notes due 2024. The outlook is stable. The rating of the proposed notes assumes that the final transaction documents will not be materially different from draft legal documentation reviewed by Moody's to date and assume that these agreements are legally valid, binding and enforceable. Ratings assigned as follows: Union Andina de Cementos S.A.A.'s ("Unacem") Corporate Family Rating: Ba2 Up to USD 700 mm senior unsecured notes due 2024: Ba2 The outlook for the ratings is stable Unacem's Ba2 corporate family rating is supported by the company's leading market position in its core cement market in Peru, with a regional concentration in the central region of Peru, containing Lima, by far the most relevant market in the country. The rating also entails Unacem's cost-competitive operations based on vertical integration and the solid fundamentals of the sector in Peru. High barriers to entry the cement market are also viewed as credit positives. Balancing these positives is Unacem's low geographic diversity when compared to its industrial rated peers. Also the cyclical nature of the construction industry and end-markets are constraining the rating. Additionally, the recent acquisition of Lafarge's cement operation in Ecuador increased the sovereign risk of Unacem's business, its execution risk and will result in weaker credit metrics. Pressures in liquidity given material amount of debt maturing in the following years are also limiting the rating. Unacem's liquidity is tight. As of June 30, 2014, Unacem's cash position of USD 86 million and last twelve months free cash flow of USD 97 million were not enough to cover the USD 243 million in debt maturities in 2014. Pro forma for the USD 700 million proposed notes and assuming debt of Lafarge Ecuador, the company estimates to keep a cash position of about USD 100 million and short term debt maturities close to USD 300 million. As per the proceeds of the notes, around USD 500 million will be used to fund the acquisition of Lafarge Ecuador and some USD 100 million to refinance debt. Following the transaction Moody's expect an improvement in Unacem's debt maturity profile, although liquidity will still be tempered by relevant debt maturities in the medium term. Going forward, the company has additional debt maturities of USD 253 million and USD 225 million in 2015 and 2016, respectively. The assigned Ba2 ratings incorporate the view that Unacem will timely address upcoming maturities to reduce refinancing risk. The proposed USD 700 million notes will not be guaranteed by any of Unacem's subsidiaries, but ratings are not adjusted for structural reasons given Moody's consideration that structural subordination is currently low. As of June 30, 2014, subsidiaries held SOL 3.4 billion (USD 1.2 billion or 41%) of net consolidated assets and were responsible for SOL 700 million (around USD 250 million) or 49% of consolidated net sales. On the other hand, pro forma for the transaction, Moody's estimate that less than 20% of consolidated debt will be at subsidiaries level. To the extent that indebtness at subsidiaries level increases in the future, the rating of the notes could be negatively impacted. Upward rating pressure could appear if the company improves its liquidity as well as its geographic and product diversification while maintaining current profitability levels. In addition, an increased scale with prudent financial management would be important for an upgrade. Quantitavely, an upgrade would require Unacem to exhibit an EBIT/interest expense ratio above 4.0x and a debt/EBITDA ratio below 2.5x. On the other hand, downward rating pressure could be triggered by a decline in the company's sales and profitability due to an adverse change in the local operating environment or cement prices. Quantitatively, a downgrade could result from a drop in Unacem's EBIT margin to below 15%, an EBITDA/interest expense ratio below 2.5x or a debt/EBITDA ratio above 4.0x on a sustained basis. Further deterioration in Unacem's liquidity position could also lead to a rating downgrade. Headquartered in Lima, Peru, Unacem is the oldest and largest cement producer in Peru with 50% of market share and revenue and EBITDA of USD 1.0 billion and USD 320 million, respectively as of June 2014 LTM. The company is involved in the production and distribution of cement, concrete, industrialized concrete structures, aggregates and electricity generation. Cement is the largest business division generating around 60% of consolidated EBITDA and 80% considering Ecuador. In Peru, Unacem has two cement plants, Atocongo and Condorcocha, which operate in the central region of Peru, whereas in Ecuador will operate a plant in the north part of Quito, once the Lafarge transaction is closed. Unacem is a public company with around 30% of its stake listed in the Peruvian Stock Exchange. The company is controlled by the Rizo-Patron family. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD & TOBAGO: Concern Over Drop in Global Oil Prices --------------------------------------------------------- Trinidad Express reports that the recent drop in global oil prices has implications for Trinidad and Tobago's economy, the Energy Chamber has said. Based in Pt Lisas, the Energy Chamber is the representative organization for the energy sector. In a statement, the Chamber said on an energy equivalency basis Trinidad and Tobago produces far more natural gas than it does oil (by a ratio of about seven to one), according to Trinidad Express. "Nevertheless the recent drop in oil prices has obvious implications for Trinidad and Tobago's economy. Crude oil accounts for 17 per cent of our total exports while refined petroleum products accounts for another 16 per cent," the statement said, the report notes. Trinidad Express relates that oil production is also a major source of Government revenue. Supplemental Petroleum Tax (SPT), the second largest category of tax, is only charged against oil production and not natural gas production, the report notes. "The current decline in oil prices is offset by the continued higher prices for LNG in our key Latin American markets and for methanol and ammonia in the USA and elsewhere." Finance Minister Larry Howai told the Express that Government will not resort to borrowing if there is a revenue shortfall from sliding oil prices. The report relays that the government based its 2014/2015 Budget on an oil price of US$80 per barrel and a gas price of US$2.75 per mmbtu. But it is not all worrying news, notes Trinidad Express. The Energy Chamber said declining oil prices also have a positive side for (State oil company) Petrotrin, "whose costs for imported oil to run through the refinery will decrease, helping the refinery's very low margins," the report discloses. The report relays that Energy Chamber noted: "Nevertheless, we need to be wary of the current situation. The last time we experienced significant declines in oil prices in 2008 other commodity prices also rapidly followed. Trinidad and Tobago must therefore monitor all of our commodity export prices carefully and be ready to revise expenditure in line with falling revenue if prices remain low." One important tool in monitoring the price of the country's energy exports is the Energy Commodity Price Index (ECPI) developed by the Central Bank and the Energy Chamber, the business group said, the report discloses. "The ECPI tracks the price movement of the country's top ten energy-based commodity exports," it added. The report notes that the index is weighted by each commodity's relative share of its value. The commodities and their weights are: -- US natural gas (40 per cent); -- oil (16.6 per cent); -- ammonia (11.8 per cent); -- methanol (9.4 per cent); -- Diesel (seven per cent); -- motor gasoline (4.3 per cent); -- natural gasoline (3.5 per cent); -- jet fuel (2.7 per cent); -- propane (2.4 per cent); and -- urea (2.3 per cent). The value of the index is currently 134.61, the lowest value since November 2013 and represents a fifth consecutive month of decline in the index's value, the report notes. The current September 2014 value is also the second lowest value in the past two years, the Chamber stated, the report adds. *********** 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 202-362-8552. * * * End of Transmission * * *