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

            Thursday, December 18, 2014, Vol. 15, No. 250


A N T I G U A  &  B A R B U D A

STANFORD INT'L: Former Workers Could be Paid Within Six Months


ARGENTINA: Bond-Sale Bust is Missed Chance as Maturities Loom


BANCO DO ESTADO: Fitch Affirms 'BB+' IDR; Outlook Positive
BRAZIL: October Economic Activity Below All Analyst Forecasts
CYRELA BRAZIL: Fitch Affirms 'BB' IDR; Outlook Stable
CSN: New Venture No Impact on Moody's Ba1 Rating
GLOBOAVES SAO PAULO: Fitch Lowers IDR to 'B-'; Outlook Stable

PETROLEO BRASILEIRO: To Cut Exploration Spending in Cash Crunch

C A Y M A N  I S L A N D S

ALL SEASONS: Shareholder Receives Wind-Up Report
CS BOND: Shareholders' Final Meeting Set for Dec. 19
CS EQUITY: Shareholders' Final Meeting Set for Dec. 19
CS MONEY: Shareholders' Final Meeting Set for Dec. 19
ERNB LTD: Shareholders Receive Wind-Up Report

GLYNN EMERGING: Shareholders Receive Wind-Up Report
HIGHLAND INVESTMENT: Shareholder Receives Wind-Up Report
KAYDEE LTD: Shareholder Receives Wind-Up Report
KSP CAPITAL: Members Receive Wind-Up Report
LAZARD DIVERSIFIED: Shareholders Receive Wind-Up Report

LIMMAT SELECT: Shareholders Receive Wind-Up Report
NEW VENTURE: Members Receive Wind-Up Report
RAWA HOLDINGS: Shareholders Receive Wind-Up Report
THIRD IRIS: Shareholders Receive Wind-Up Report
WING HANG: Shareholder Receives Wind-Up Report


CHILE: Will Improve Early Education With US$75 Million IDB Loan


PARAGUAY: Growth Projected Around 4 Percent Next Year, IMF Says


PERU: Plans to Limit Bets Against Sol in Derivatives Market

P U E R T O    R I C O

LIBERTY CABLEVISION: Moody's Affirms B3 Corporate Family Rating
UNIV. OF PUERTO RICO: S&P Puts 'BB' Rev. Bond Rating on Watch Neg.

                            - - - - -

A N T I G U A  &  B A R B U D A

STANFORD INT'L: Former Workers Could be Paid Within Six Months
Tameika Malone at the Daily Observer reports that a six-month
timeline has been given to former employees of Stanford
Development Company (SDC) as the period within which they could
start to receive monies owed to them.

"Our sale agents believe that we will have that money in three to
six months," one of the liquidators for SDC, Marcus Wide, said in
an interview with Daily Observer.

However, the Grant Thornton partner admitted that there could be
further delays, the report notes.

"It is not always possible to close sales. It took us almost nine
months to close Yida because there are formalities and
requirements from government.  It could be that we have sales
agreed (to) that we can't close for a period of time, but we are
optimistic it can be done in three to six months," the report
quoted Mr. Wide as saying.

The liquidator said most of the properties already have
prospective buyers, but the sales have to be finalized, according
to Daily Observer.

The report relays that Mr. Wide added that funds had to be
borrowed to maintain the assets in order to ensure they will
attract buyers, and that those monies must first be repaid before
the former employees get their outstanding payments.

Former Stanford workers, who were employed by Sun Printing and
Publishing, Antigua Athletic Club and Sticky Wicket Restaurant
picketed the offices of Grant Thornton last week to demand answers
on when the money owed to them since the 2009 collapse of the
Stanford empire will be forthcoming, the report notes.

They complained that properties owned by the disgraced financier
are being sold and nothing is forthcoming to them, the report

However, Mr. Wide said the US$60 million received from the sale of
Guiana Island to Yida International went to the Stanford
International Bank, the report adds.

             About Stanford International Bank

Domiciled in Antigua, Stanford International Bank Limited -- is a member of
Stanford Private Wealth Management, a global financial services
network with US$51 billion in deposits and assets under
management or advisement.  Stanford Private Wealth Management
serves more than 70,000 clients in 140 countries.

On Feb. 16, 2009, the United States District Court for the
Northern District of Texas, Dallas Division, signed an order
appointing Ralph Janvey as receiver for all the assets and
records of Stanford International Bank, Ltd., Stanford Group
Company, Stanford Capital Management, LLC, Robert Allen Stanford,
James M. Davis and Laura Pendergest-Holt and of all entities they
own or control.  The February 16 order, as amended March 12,
2009, directs the Receiver to, among other things, take control
and possession of and to operate the Receivership Estate, and to
perform all acts necessary to conserve, hold, manage and preserve
the value of the Receivership Estate.

The U.S. Securities and Exchange Commission, on Feb. 17, charged
before the U.S. District Court in Dallas, Texas, Mr. Stanford and
three of his companies for orchestrating a fraudulent, multi-
billion dollar investment scheme centering on an US$8 billion
Certificate of Deposit program.

A criminal case was pursued against him in June before the U.S.
District Court in Houston, Texas.  Mr. Stanford pleaded not
guilty to 21 charges of multi-billion dollar fraud, money-
laundering and obstruction of justice.  Assistant Attorney
General Lanny Breuer, as cited by Agence France-Presse News, said
in a 57-page indictment that Mr. Stanford could face up to 250
years in prison if convicted on all charges.  Mr. Stanford
surrendered to U.S. authorities after a warrant was issued for
his arrest on the criminal charges.


ARGENTINA: Bond-Sale Bust is Missed Chance as Maturities Loom
Camila Russo at Bloomberg News reports that Argentina missed a
chance to boost foreign reserves and push back much of the US$12
billion in debt coming due next year as investors balked at the
terms for the country's first bond sale since defaulting in July.

The government issued just US$286 million of the US$3 billion in
10-year notes that it offered last week for 96.2 cents on the
dollar, above the 94.4 cents they fetch in the secondary market.
Offers to swap US$6.3 billion of securities due next year for ones
that mature in 2024 lured investors holding less than 10 percent
of the debt outstanding, according to Bloomberg News.  Both the
swap and the sale involved notes governed by local law, exempt
from a U.S. court ruling that prevents the country from paying
overseas debt, Bloomberg News notes.

Bloomberg News relates that Argentina's debt obligations next year
total about 40 percent of its foreign reserves, and the country
remains locked out of international credit markets because of a
decade-long dispute with holders of bonds it defaulted on in 2001.

Siobhan Morden, the head of Latin America strategy at Jefferies
LLC, said the nation should have offered better prices in the debt
deal to trim next year's payments and raise much-needed cash,
Bloomberg News discloses.

"They lost an opportunity for cashflow savings, offering no
motivation to participate," Mr. Morden said in an e-mailed
response to questions after the sale Dec. 12, Bloomberg News
relates.  "Why not do it right? They'll probably resort to intra-
government financing as they still need cashflow relief when debt
service nearly doubles next year," Bloomberg News quoted Mr.
Mordern as saying.

Argentina swapped US$377 million of local-law notes, known as
Boden 15s, for local dollar-denominated bonds due 2024, Bloomberg
News notes.  It bought back US$185 million of the securities due
next year at 97 cents on the dollar, below the 97.1 cents they
were trading at.  The new bonds it sold were priced to yield about
9.5 percent, Bloomberg News relays.

                        Ability to Pay

Economy Minister Axel Kicillof said Dec. 12 in Buenos Aires that
the fact Argentina was able to sell any debt at all in the midst
of what he called a "catastrophic" international context means the
issuance was a success, Bloomberg News says.  More than US$1.2
trillion was erased from equities worldwide last week as the drop
in crude oil below US$58 a barrel raised concern over the strength
of the global economy, Bloomberg News discloses.

In an interview in Radio Nacional, Minister Kicillof rejected that
the terms were poorly designed and said, "the country isn't
crawling through the desert looking for the last dollar,"
Bloomberg News says.

The economy minister also said investors didn't swap or cash in
their 2015 bonds because they're confident in Argentina's capacity
to pay, Bloomberg News discloses.  The government didn't hire an
international bank to advise on the transaction, Bloomberg News

                      Lack of Interest

Argentina's benchmark international debt due in 2033 fell 0.46
cent to 85.92 cents on the dollar as of 9:55 a.m. in New York on
Dec. 15.  The local-law bonds due in 2024 sank 0.79 cent to a one-
month low of 93.62 cents on the dollar.

Investors who wanted to buy large amounts of the 2024 notes and
couldn't find liquidity in the secondary market were the likely
purchasers last week, according to Alejo Costa, a strategist at
Puente Hnos Sociedad de Bolsa SA in Buenos Aires, Bloomberg News

Bloomberg News notes that Argentina could still get additional
financing from international investors if it issues local-law
bonds at more attractive prices, according to Eduardo Levy-Yeyati,
the director of Buenos Aires-based consultancy firm Elypsis.

"Their offer was below market so the lack of interest was rather
predictable," Levy-Yeyati, who also works as a consultant for the
World Bank, said in an e-mailed response to Bloomberg News'
questions.  "This doesn't say much about Argentina's access. It is
still there, for limited amounts, at the market price," Mr. Levy-
Yeyati said, Bloomberg News says.

For Joshua Rosner, a bank analyst at Graham Fisher & Co., the
results of the transactions show Argentina needs to settle the
dispute with creditors that prevents it from accessing capital
markets overseas, Bloomberg News discloses.  After losing a
lawsuit, the country is blocked from servicing international debt
until it pays some holders of bonds it defaulted on in 2001 in
full, Bloomberg News relays.

"As long as the country avoids settlement with the holdouts, it is
incapable of raising money even as it offers 10 percent," Mr.
Rosner wrote in an e-mail obtained by Bloomberg News.

                          *     *     *

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.

On Nov. 3, 2014, the TCR-LA reported that Fitch Ratings downgraded
Argentina's rating on Par Bonds issued under Foreign Law to 'D'
from 'C' as Argentina has not been able to cure the missed coupon
payments on its par bonds issued under foreign law after the
expiration of the 30-day grace period on Oct. 30.  According to
Fitch's criteria, this constitutes an event of default and Fitch
has downgraded the affected securities to 'D'.  In addition, Fitch
has affirmed:

   -- Foreign Currency Issuer Default Rating (IDR) at 'RD';
   -- Local Currency IDR at 'CCC';
   -- Short-term Foreign Currency IDR at 'RD';
   -- Country Ceiling at 'CCC'.
   -- Performing Foreign Law Exchanged Securities (Global 17) at
   -- Local Currency exchanged bonds under Argentine Law at 'CCC';
   -- Foreign and Local Currency non-exchanged securities under
      Argentine Law at 'CCC';
   -- Discount Bonds issued under Foreign Law at 'D'.


BANCO DO ESTADO: Fitch Affirms 'BB+' IDR; Outlook Positive
Fitch Ratings has affirmed Banco do Estado do Rio Grande do Sul
(Banrisul) Long- Term Issuer Default Rating (IDR) at 'BB+'.  Fitch
has also affirmed Banrisul's Viability Rating at 'bb+' and the
National Long-Term rating at 'AA-(bra)'.  The Outlooks for the
ratings is Positive.


The Positive Outlook reflects Fitch Ratings' expectation that
Banco do Estado do Rio Grande do Sul's (Banrisul) performance will
remain consistent with its peers in 2015, preserving both asset
quality and profitability metrics, despite the more challenging
economic conditions.  Banrisul's ratings also embed the bank's
regional importance, its stable retail funding base, adequate
profitability and liquidity ratios.

Fitch factors in the political influence in Banrisul's ratings.
However, the agency does not consider Rio Grande do Sul's support
on Banrisul.  The Support Rating of '4' and Support Rating Floor
'B' reflect that a limited support from the federal government
would be possible under a stress scenario given Banrisul's
relative importance to the financial system since Banrisul ranks
as the 12th largest bank in Brazil.  However, there are no
explicit guarantees of this support.

Banrisul was able to post compatible performance metrics up to
September 2014, as expressed by a net interest margin of 6.8%,
despite suffering from some price pressure during 2014, especially
in the secured loans segment (payroll deductible), coupled with an
increase credit cost.  Banrisul continues to benefit from
increased fee-related revenues, but they do not cover the full
amount of personnel expenditures, as it is for the other large
private retail banks in Brazil.

In light of the more challenging economic situation affecting
companies in the state and its shift towards services, Banrisul
has reviewed the credit expansion to 10%-14% for 2014, from the
annual average growth of 18.9% posted in the last five years.
Consumer credits should continue to expand relatively higher,
boosted by the acquisition of payroll deductible loans from other

Reflecting the poor economic performance, Banrisul's loans past
due for over 90 days reached 3.5% of the portfolio in September
2014, slightly worse than the national financial system figures
for the period (3.0%) and when compared with 2013 (3.2%).  In
light of the macroeconomic challenges, Fitch expects some
deterioration in the bank's corporate portfolio for 2015,
partially mitigated by the fact that its credit operations are not

Banrisul Debt

Letras Financeiras: Banrisul's senior unsecured domestic issuances
rank equal with its other senior unsecured debt, and its ratings
are aligned to the bank long-term national ratings.

USD Tier 2 Subordinated Notes: Banrisul's 'BB-' rated subordinated
notes due January 2022 are rated two notches below the VR 'bb+' of
the bank.  Fitch discounts one notch for loss severity
characteristics and subordinated status and one notch for its
moderate risk of failure in performance.  These notes rank pari
passu to the bank's subordinated debt and have a cumulative coupon
deferral mechanism that can be exercised if the minimum regulatory
capital is breached.  These notes are losing equity credit as they
do not qualify for equity credit under Basel 3 requirements.


Banrisul's VR and IDR

Positive Factors: Banrisul's ability to generate adequate
profitability in times of economic distress as measured by an
Operating Profit/ Average Total Assets of around 2% along with its
good asset quality ratios, expressed by its nonperforming loans
above 90 days around 3% and more than 150% loan loss reserve
coverage, could result in an upgrade in its Viability Rating and
consequently in its IDRs.

Negative Factors: Deterioration in Banrisul's asset quality and/or
its profitability could result in an Outlook of Stable.  It also
could be downgraded if its asset quality ratios deteriorate, as
expressed by 90 days past due loan ratio above 5% and weaker loan
loss coverage and/or if its Fitch core capital is below 12%.

Any change of Banrisul's ratings may lead to a review of ratings
assigned to its issuances.

Fitch affirms these ratings:

Banco do Estado do Rio Grande do Sul

   -- Long-term Foreign and Local currency IDRs at 'BB+'; Positive
   -- Short-term Local and Foreign Currency IDR at 'B';
   -- Viability Rating at 'bb+';
   -- Support rating at '4';
   -- Support Rating Floor at 'B';
   -- National Long Term rating at 'AA-(bra)'; Positive Outlook;
   -- National Short-Term rating at 'F1+(bra)';
   -- First Issuance of Senior Unsecured Letras Financeiras at
   -- Tier II Subordinated notes due Feb 2022 at 'BB-'.

BRAZIL: October Economic Activity Below All Analyst Forecasts
Mario Sergio Lima at Bloomberg News reports that Brazil's economic
activity in October unexpectedly declined, as the central bank
continues to raise rates in the biggest emerging market after

The seasonally adjusted economic index, a proxy for gross domestic
product, fell 0.26 percent in October from the prior month after
growing a revised 0.26 percent in September, the central bank said
in a report posted on its website, according to Bloomberg News.
That was below every estimate from 27 economists surveyed by
Bloomberg, whose median forecast was for a 0.25 percent expansion.

Bloomberg News notes that Brazil's edged out of recession in the
third quarter, as the country is expected by economists to grow at
the slowest pace in five years.  Waning confidence increases the
challenges for appointed Finance Minister Joaquim Levy, who vowed
to impose more rigorous fiscal discipline to narrow the widest
budget deficit in a decade, Bloomberg News relates.

The non-seasonally adjusted economic activity index fell 1.18
percent from a year ago, compared with a median estimate of a 0.30
percent drop, the central bank report said, Bloomberg News

"This suggests that the fourth quarter started out on the wrong
foot," Bloomberg News quoted Andre Perfeito, chief economist at
Gradual Investimento, as saying.  "It was a big disappointment,
and with marginally better numbers in retail sales and weak
industrial output, exports probably brought the number down," Mr.
Perfeito added.

Economists surveyed by the central bank cut this year's gross
domestic product estimate to 0.16 from 0.18 last week, the bank
said on its website, Bloomberg News notes.  That would be the
worst result since 2009. For 2015, they see expansion of 0.69
percent, down from 0.73 percent the previous week, Bloomberg News

                         Largest Economy

Brazil's economy expanded 0.1 percent in the third quarter after
recording a recession in the first six months of the year,
Bloomberg News notes.

Weak growth and deteriorating fiscal results led Standard & Poor's
in March to cut the country's sovereign debt rating to one level
above junk.  In September, Moody's Investors Services followed by
cutting Brazil's outlook to negative.

Inflation accelerated to 0.51 percent in November from 0.42
percent in the previous month, Bloomberg News discloses.  Annual
consumer prices ended November at 6.56 percent, above the ceiling
of the government-set target of 4.5 percent plus or minus two
percentage points, Bloomberg News relays.

Analysts surveyed by the central bank expect inflation to end 2014
at 6.38 percent and to finish 2015 at 6.50 percent, Bloomberg News

Price increases have contributed to falling consumer confidence,
which in November reached its lowest level in more than five
years, according to the Getulio Vargas Foundation, a Brazilian
research group and business school, Bloomberg News says.

Bloomberg News discloses that with inflation above target, the
central bank on Dec. 3 boosted the benchmark interest rate by half
a point to 11.75 percent.  The bank said in the minutes from the
meeting that fiscal policy will become tighter and additional rate
adjustments to contain above-target inflation will probably be
carried out with parsimony, Bloomberg News notes.

"I think we could see this number as an indication that the
central bank's rate increases are starting to have an impact on
activity," Mr. Perfeito told Bloomberg News in a telephone
interview from Sao Paulo.

Brazil's real has weakened 11.9 percent against the dollar in the
past three months, the second-worst among major currencies tracked
by Bloomberg.

CYRELA BRAZIL: Fitch Affirms 'BB' IDR; Outlook Stable
Fitch Ratings has affirmed Cyrela Brazil Realty S.A.
Empreendimentos e Participacoes' (Cyrela) foreign- and local-
currency Issuer Default Ratings (IDR) at 'BB' and long-term
national scale at 'AA-(bra)'.  The Rating Outlook for Cyrela's
corporate ratings is Stable.

Cyrela's ratings remain supported by the company's conservative
financial strategy sustained by low leverage, strong liquidity and
well-distributed corporate debt maturity profile.  The ratings are
also supported by Cyrela's historical satisfactory operational
performance, resulting from the company's ability to operate with
adequate operating margins and positive operational cash flow
generation, on a recurring basis, despite the more challenging
environment observed for the industry in the last couple of years.

Cyrela's credit profile is also benefits from the company's
position as one of the largest developers in Brazil's real estate
industry, the strength of its franchise and its solid and
diversified landbank.  The ratings remain constrained by the
expectation that inventory of finished units should remain high
and by the exposure of its business to the cyclicality of the
homebuilding industry, which is highly correlated with the local
economy and vulnerable to an economic slowdown, higher
unemployment rate and restrictions in lines of credit.

Fitch has a cautious outlook for the homebuilding sector in 2015.
The sector risk is considered above average, due to the long
construction cycle and direct exposure to macroeconomic
conditions.  The deterioration of the Brazilian macroeconomic
scenario has resulted in lower homebuyers' indebtedness capacity
and higher interest rates, which could increase cancellation of
sales contracts and generate limitations in reselling capacity.


Conservative Financial Strategy

The company's financial strategy is conservative and is designed
to maintain a strong cash cushion, which has remained above BRL1.7
billion since 2011, and a lengthened corporate debt maturity
profile.  As of Sept. 30, 2014, cash and marketable securities was
BRL1.8 billion and total debt was BRL4.2 billion, with BRL1.9
billion due at the end of 2015 and BRL1.1 billion in 2016.  Out of
debt maturities, BRL528 million and BRL402 million, respectively,
are related to corporate debt.

A significant part of Cyrela's cash position is restricted cash,
to finance construction costs.  Non-restricted cash at the holding
level of BRL554 million covered corporate debt due up to the end
of 2015 at 1.1x.  The company also benefits from potential
liquidity from approximately BRL1.2 billion of receivables from
completed and sold units not linked to debt and about BRL3.2
billion of receivables that will mature in the next 24 months, net
of costs to be incurred.

Positive Cash Flow Generation

Cyrela reported positive cash flow from operations (CFFO) during
the last four years and free cash flow (FCF) should continue to
benefit from high volume of project deliveries in the next couple
of years.  In the LTM ended September 2014, the company generated
FFO of BRL1.1 billion, CFFO of BRL721 million and FCF of BRL471
million.  These numbers compare with BRL888 million, BRL334
million and BRL51 million, respectively, reported in 2013.  EBITDA
was BRL1.3 billion (excluding financial expenses allocated to
costs).  Cyrela used part of its cash generation in a share
buyback program that amounted BRL109 million in 2013 and BRL265
million in the nine months ended September 2014.  Higher dividend
distribution and/or a share repurchase program, however, could
pressure the company's FCF.

Net Leverage to Remain Low

Cyrela's net leverage should remain at conservative levels.  In
the LTM ended September 2014, total debt/adjusted EBITDA was 3.3x
and, on a net basis, was 1.9x.  These ratios compare with an
average of 3.6x and 2.2x between 2010 and 2013. Fitch expects net
leverage around 2.0x in the next couple of years.

When analyzed under potential cash flow generation, the ratio of
total receivables on the balance sheet plus inventory of concluded
units plus revenue to be booked over net debt plus acquisition of
property for development plus cost to be incurred of units sold
was 1.8x in September 2014, stable compared to December 2013.
This coverage ratio is strong and well above the industry's

Finished Inventory Not Expected to Reduce

Cyrela was efficient in managing the turnaround operating strategy
and reported adequate margins, despite diverse market conditions.
In the LTM ended September 2014, EBITDA margin was 22.6%, compared
with an average of 21.4% reported in the last three years.
Despite the reduction in sales speed, it remained above the
average for the sector.  The average sales over supply ratio, net
of cancellations, was 16.3% per quarter during the first nine
months of 2014, compared to 20.8% per quarter in 2013 and 18.2%
per quarter in 2012.  The volume of cancellations of sales
contracts remained manageable.

However, Cyrela still has the challenge to reduce its high
inventory of finished units.  As of Sept. 30, 2014, total
inventory had estimated market value of BRL5.4 billion and about
18% consisted of concluded units.  Fitch does not expect a
significant reduction of finished inventory in the short term, as
31% of total inventory of units under construction will be
delivered up to the end of 2015 and part of the company's
inventory is located in cities with oversupply.


Cyrela's ratings could be upgraded if the company preserves
current credit metrics for a longer period of time and in diverse
market conditions, coupled with the reduction of inventory to more
conservative levels.

Cyrela's ratings could be negatively affected if company's cash-
to-short-term corporate debt coverage reduces to below 1.0x; by an
increase in net leverage to above 3.5x on a recurring basis; and
if inventory of concluded units continue to increase, frustrating
Fitch's expectation of cash flow generation capacity.

A reduction of total receivables on the balance sheet plus
inventory of concluded units plus revenue to be booked over net
debt plus acquisition of property for development plus cost to be
incurred of units sold ratio to levels below 1.7x could also
negatively pressure the ratings.  In addition, a scenario for a
Negative Outlook or downgrade includes a more unstable
macroeconomic environment, which could impact the homebuilding
sector's fundamentals.

CSN: New Venture No Impact on Moody's Ba1 Rating
Moody's Investors Service comments that CSN's announced new joint-
venture that will consolidate all mining assets under Congonhas
Minerios S.A is credit positive, but has no impact on the
company's Ba1 ratings.

GLOBOAVES SAO PAULO: Fitch Lowers IDR to 'B-'; Outlook Stable
Fitch Ratings has downgraded the long-term foreign- and local-
currency Issuer Default Ratings (IDRs) of Globoaves Sao Paulo
Agroavicola Ltda (Globoaves) to 'B-' from 'B', as well as the
National Scale rating to 'BB+(bra)' from 'BBB(bra)'.  The Rating
Outlook is Stable.

The downgrade follows the company' failure to place a USD200
million five-year bond in the second half of 2014, which has
triggered a negative rating action as had been outlined by Fitch
on June 15, 2014.  This bond was crucial for improving the
company's liquidity position and lengthening its debt structure.
As of Sept. 30, 2014, Globoaves reported consolidated cash of
BRL46 million, which covered 14% of its BRL329 million of short-
term debt obligations.


Volatile Industry

The 'B-' rating also reflects Globoaves' operations in the
volatile meat protein business, which results in significant
fluctuation in its earnings and cash flow generation.  Positively,
Globoaves has a long operational track record and a relatively
large market position in the niche segment of fertilized eggs and
day-old-chicken production.  The high margin of its genetics and
breeding businesses, which represented 75% of total combined
EBITDA in 2013, mitigates the volatility and small size of its
protein segment.  Globoaves' capital structure is moderately
leveraged with its consolidated net adjusted debt/EBITDAR ratio at
2.0x during 2013.

Low Liquidity

Globoaves' financial flexibility is constrained by a high level of
secured bank debt and weak liquidity position.  This continues to
impede the company's ability to refinance its debt.  As of
Sept. 30, 2014, Globoaves only had BRL46 million of cash, which
compares unfavorably to BRL329 million of short-term debt.  Most
of the company's short-term debt is related to trade finance debt
and has been rolled over as a result of the company's strong flow
of exports.

Well-Established Company in Volatile Industry

Globoaves has operated for more than 35 years in the genetics and
breeding stages of the poultry industry's supply chain.  Combined,
the genetics and breeding businesses account for 75% of the
group's EBITDA.  The balance of the company's EBITDA is generated
by its subsidiary, Kaefer Agroindustrial, which produces pork and
chicken.  Globoaves' operating environment and cash flow are
volatile.  The prices of Globoaves' products are outside the
company's control, as they depend upon demand for broilers,
chicken and pork meat, while its costs are highly correlated with
grain prices.

Steady 2014 Performance

Globoaves' combined businesses generated BRL253 million of EBITDA
in 2013, which compares positively with BRL136 million in 2012.
Similarly, the company's EBITDA margin expanded to 22% from 12%
during this time period.  Fitch expects that Globoaves will
present a slightly lower EBITDAR generation and margins in 2014,
due to the challenges the company faces to transfer the increasing
costs to customers via prices.  In September 2014, the combined
businesses generated BRL245 million of EBITDA with a margin of
19.2%. Results during 2012 were hit hard by high grain prices.

FCF to Remain Negative in Short Term

Although Globoaves' EBITDA generation was high in 2013, its free
cash flow (FCF) was negative BRL60 million due to large working
capital needs for grain and high capex levels.  The company plans
to increase its protein production capacity by investing an
additional BRL100 million in capex during 2014 through 2016.
Fitch expects FCF to turn moderately positive by 2016.

Moderate Leverage

Leverage at Globoaves was only moderately high during 2013 due to
the sharp upturn in EBITDA.  For 2013, the company ended the year
with a net adjusted debt/EBITDA ratio of 2.0x; this compares with
3x during 2012.  Leverage remained quite unchanged during as of
September 2014 LTM, at 2x.  However, Fitch expects the company's
leverage to be in the range of 2x to 2.3x during the next two


A negative rating action may occur if the company's business
position deteriorates or if it has debt-financed acquisitions that
could lead to a net leverage ratio above 3x.  Continued weak
liquidity could also result in an additional negative rating

A solid liquidity position and an improved debt maturity schedule,
with a cash and marketable securities position covering about 1x
the short-term debt, could lead to a positive rating action.

PETROLEO BRASILEIRO: To Cut Exploration Spending in Cash Crunch
Sabrina Valle and Leonardo Silva at Bloomberg News report that
Petroleo Brasileiro SA is curbing refining and exploration
spending in response to the collapse in prices and difficulties
tapping debt markets during a corruption probe, said two people
with direct knowledge of the matter.

The state-run oil company known as Petrobras plans to freeze
investments in the Premium I and Premium II refineries in
northeastern Brazil and sell assets to protect its cash position,
said one of the people, according to Bloomberg News.  The
exploration cuts will focus on projects that are behind schedule,
they said, Bloomberg News relates.  Both asked not to be named
because the information isn't public.

"This is totally beneficial for the company, as they can build
cash," Henrique Kleine, an analyst at brokerage Magliano told
Bloomberg News in a telephone interview.  "The stock price is so
low and that brings strong volatility," Bloomberg News quoted Mr.
Kleine as saying.

Petrobras, the most indebted publicly-traded oil company, is
trading at the lowest since 2004 amid an expanding investigation
into contractors who allegedly bribed company officials, Bloomberg
News relates.  The oil producer has delayed reporting its
financial results while independent investigators conclude their
reports in what has become Brazil's largest-ever money-laundering
and corruption scandal, Bloomberg News discloses.

                         Writedown Discord

Petrobras has said it needs to release audited results to access
foreign capital markets, Bloomberg News relays.  The delay in
reporting results came after the company's board couldn't agree on
the size of writedowns stemming from graft-related costs, a person
with direct knowledge of the issue, who asked not to be named
because the information isn't public, said, Bloomberg News says.

The company must report unaudited results by the end of January to
avoid breaching covenants on some of its bonds that could result
in accelerated payments, it said in a statement Dec. 12, Bloomberg
News discloses.

Petrobras also plans to review its fuel-price strategy and curb
operating expenses to preserve cash, which stood at BRL62.5
billion (US$23 billion) at the end of September, it added,
Bloomberg News notes.

The price of crude oil plunged through US$60 a barrel for the
first time in five years amid a supply glut, Bloomberg News

While Petrobras is looking to contain spending in Brazil, it's
delaying a planned exit from Argentina's petrochemical business as
the graft case in Brazil slows signing of new contracts, two
people familiar with that process said, Bloomberg News notes.

Petrobras received a joint offer for its 34 percent stake in Cia.
Mega SA from partners YPF SA and Dow Chemical Co., said the
people, who asked not to be named because the talks are private,
Bloomberg News notes.

Buenos Aires-based YPF SA owns 38 percent of Mega and Dow has 28

Based in Rio de Janeiro, Brazil, Petroleo Brasileiro S.A. --
Petrobras (Brazilian Petroleum Corporation) -- explores for oil
and gas and produces, refines, purchases, and transports oil
and gas products.  The Company has proved reserves of about 14.1
billion barrels of oil equivalent and operates 16 refineries, an
extensive pipeline network, and more than 8,000 gas stations.

As reported in the Troubled Company Reporter-Latin America on
Dec. 11, 2014, Moody's Investors Service lowered Petrobras'
Baseline Credit Assessment (BCA) to ba1 from baa3. The outlooks on
all of the ratings remain negative for Petrobras, Brazil's
national oil company.

C A Y M A N  I S L A N D S

ALL SEASONS: Shareholder Receives Wind-Up Report
The shareholder of All Seasons Absolute Return Fund Ltd received
on Dec. 4, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidators are:

          Roger Priaulx
          Edel Andersen
          c/o Genesis Trust & Corporate Services Ltd.
          Midtown Plaza, 2nd Floor
          Elgin Avenue, George Town
          Grand Cayman KY1-1106
          Cayman Islands
          Telephone: (345) 945 3466
          Facsimile: (345) 945 3470

CS BOND: Shareholders' Final Meeting Set for Dec. 19
The shareholders of CS Bond Strategy Ltd. will hold their final
meeting on Dec. 19, 2014, at 10:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidators are:

          Stuart Brankin
          Desmond Campbell
          c/o Aston Corporate Managers, Ltd.
          P.O. Box 1981 Grand Cayman
          Cayman Islands
          Telephone: (345) 949 5586

CS EQUITY: Shareholders' Final Meeting Set for Dec. 19
The shareholders of CS Equity Strategy Ltd. will hold their final
meeting on Dec. 19, 2014, at 10:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidators are:

          Stuart Brankin
          Desmond Campbell
          c/o Aston Corporate Managers, Ltd.
          P.O. Box 1981 Grand Cayman
          Cayman Islands
          Telephone: (345) 949 5586

CS MONEY: Shareholders' Final Meeting Set for Dec. 19
The shareholders of CS Money Market Strategy Ltd. will hold their
final meeting on Dec. 19, 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 liquidators are:

          Stuart Brankin
          Desmond Campbell
          c/o Aston Corporate Managers, Ltd.
          P.O. Box 1981 Grand Cayman
          Cayman Islands
          Telephone: (345) 949 5586

ERNB LTD: Shareholders Receive Wind-Up Report
The shareholders of ERNB Ltd. received on Nov. 26, 2014, the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Eleanor Fisher
          c/o Kevin Guirey
          Telephone: (345) 814 4038
          P.O. Box 776 38 Market Street, Camana Bay
          Grand Cayman KY1-9006
          Cayman Islands

GLYNN EMERGING: Shareholders Receive Wind-Up Report
The shareholders of Glynn Emerging Opportunity III Offshore Fund
received on Dec. 18, 2014, 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

HIGHLAND INVESTMENT: Shareholder Receives Wind-Up Report
The shareholder of Highland Investment Fund received on Dec. 4,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          Marcelo Bandeira De Mello
          c/o Jonathan Turnham
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949 9877

KAYDEE LTD: Shareholder Receives Wind-Up Report
The shareholder of Kaydee Ltd received on Dec. 18, 2014, the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Commerce Corporate Services Limited
          P.O. Box 694 Grand Cayman
          Cayman Islands
          Telephone: 949 8666
          Facsimile: 949 0626

KSP CAPITAL: Members Receive Wind-Up Report
The members of KSP Capital Managers Limited received on Dec. 1,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidators are:

          Jason Hughes
          c/o Tulloch & Co
          4 Hill Street, London
          W1J 5NE
          United Kingdom

LAZARD DIVERSIFIED: Shareholders Receive Wind-Up Report
The shareholders of Lazard Diversified Strategies Fund Ltd.
received on Nov. 26, 2014, the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

          Lazard Alternatives, LLC
          c/o Barnaby Gowrie
          Telephone: +1 (345) 914 6365

LIMMAT SELECT: Shareholders Receive Wind-Up Report
The shareholders of Limmat Select Plus Master Ltd. received on
Dec. 1, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Alternative Investment Solutions Ltd.
          10 Market Street, Suite 140 Camana Bay
          Grand Cayman KY1-9006
          Cayman Islands

NEW VENTURE: Members Receive Wind-Up Report
The members of New Venture TL Ltd received on Dec. 1, 2014, the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

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

RAWA HOLDINGS: Shareholders Receive Wind-Up Report
The shareholders of Rawa Holdings Limited received on Nov. 25,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidators are:

          Lana Farrington
          Jennifer Rankin
          Eagle Holdings Limited
          25 Main Street
          P.O. Box 487, George Town
          Grand Cayman, KY1-1106
          Cayman Islands

THIRD IRIS: Shareholders Receive Wind-Up Report
The shareholders of Third Iris Corp received on Nov. 26, 2014, the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Eleanor Fisher
          c/o Kevin Guirey
          Telephone: (345) 814 4038
          P.O. Box 776 38 Market Street, Camana Bay
          Grand Cayman KY1-9006
          Cayman Islands

WING HANG: Shareholder Receives Wind-Up Report
The shareholder of Wing Hang Bank (Cayman) Ltd received on
Dec. 10, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidators are:

          Lee Tak Lim
          Wong Pou San
          113 Avenida Conselheiro
          Ferreira De Almeida
          27 andar, J27, Edif. Holland Garden
          Wong Pou San
          54 Rua.Fernao
          Mendes Pinto Edf. Pou Seng 8-and-F
          c/o Lee Tak Lim
          Telephone: 853-8398-3225


CHILE: Will Improve Early Education With US$75 Million IDB Loan
The Inter-American Development Bank (IDB) has approved a loan of
US$75 million to finance a program that will contribute to the
improvement of conditions for the development of girls and boys up
to four years old in Chile through the expansion of daycare and
pre-school centers.  The new slots will incorporate high standards
in infrastructure, equipment and services provided.

The objectives of the Program for the Expansion and Improvement of
Early Education include reducing the gap in care by expanding
coverage, especially for Chilean families with fewer socio-
economic resources, and contributing to the implementation of a
high-quality agenda through activities that improve the
performance of teachers and the quality of education.

"At the IDB we are pleased to support early education in Chile,
where quality activities generate many positive impacts during the
school and adult years and are a powerful mechanism for promoting
equity and social justice," said Jes£s Duarte, project team leader
at the IDB.

The program will finance the construction and equipment of
approximately 150 early education centers, with about 222 daycare
centers and 195 pre-school centers.

Construction of the new centers will meet the guidelines, norms
and models established by the Ministry of Education and the
National Kindergarten Board to facilitate comprehensive learning
solutions, including a high degree of adaption of buildings to the
biopsychosocial characteristics of the children, to their
activities and to the deployment of teaching procedures that help
children to achieve their maximum potential.

The program also will support an effort to improve pre-school
education, the establishment of a system of georeferencing the
pre-school centers, the strengthening of teaching and
administrative practices at the centers of the National
Kindergarten Board, and the evaluation of the program.

Among the results of these activities will be a proposal for a
strategy to reduce the gap between the current centers and the
establishments to be built with the new standards, which will
guide the country's actions in this area in coming years.  The
program also will create new places for 4,500 children in daycare
centers and 4,700 new places in early education centers, and will
provide training to 8,000 teachers and technicians.

The US$75 million IDB loan is payable in 15 years, with a four-
year grace period, an interest rate based on LIBOR and US$75
million in local matching funds.


PARAGUAY: Growth Projected Around 4 Percent Next Year, IMF Says
A staff team from the International Monetary Fund (IMF), led by
Andre Meier, visited Asuncion during December 1-12 to hold
discussions for the 2014 Article IV consultation.  The team met
with Central Bank of Paraguay (BCP) President Carlos Fernandez,
Minister of Finance German Rojas, Minister of Labor, Employment,
and Social Security Guillermo Sosa, Minister of Public Works and
Communications Ramon Jim‚nez, and other senior officials, as well
as representatives from Congress, the private sector, think tanks,
and the donor community.

At the conclusion of the visit, Mr. Meier issued the following

"Paraguay remains one of the most dynamic economies in Latin
America, with growth projected around 4 percent both this year and
next.  Public debt is moderate, international reserves are ample,
and inflation is expected to stay in line with the target.
Notwithstanding these sound macroeconomic fundamentals, the
outlook is subject to risks from lower agricultural commodity
prices, economic weakness among trading partners, and weather-
related shocks.  In addition, Paraguay faces important structural
challenges, including large infrastructure gaps, poor educational
outcomes, and low public sector efficiency.

"The authorities have started to tackle key structural challenges.
Tax collection has improved significantly; preparations are
underway to launch several large infrastructure projects; and the
recently adopted 'freedom-of-information' law will foster
government transparency.  These efforts deserve full support and
should be taken further to achieve lasting improvements in public
services, institutional quality, and the rule of law.  Such
improvements, in turn, are critical to attract investment, boost
productivity, and underpin medium-term growth and poverty

"To consolidate macroeconomic stability, Paraguay has adopted new
policy frameworks in recent years, notably an inflation targeting
regime and the Fiscal Responsibility Law (FRL).  These frameworks
provide appropriate anchors for policy.  It is thus unfortunate
that the 2015 budget approved by the legislature envisages
spending and a deficit above the limits mandated by the FRL, while
perpetuating a pattern of unrealistically high revenue
projections. Significant restraint in the execution of the budget
will be required to limit the deficit to 1.5 percent of GDP and
build the credibility of the FRL, as intended by the government.

"More broadly, the planned expansion of public investment needs to
be integrated into a prudent fiscal plan.  To accommodate higher
capital spending, it will be important to extend the fight against
tax evasion, including in the customs administration, and ensure
tight control over current spending.  Civil service reform would
assist this effort, by rationalizing public employment and raising
efficiency.  Over time, it may well become necessary to mobilize
additional revenue, including by raising the tax contribution of
the primary sector.  A prudent medium-term plan will also leave
some buffer relative to the FRL deficit ceiling so that fiscal
policy does not need to be tightened during downturns.

"Private sector participation in infrastructure investment is
welcome but must be managed carefully to contain risks to the
public finances.  Particular caution is warranted with respect to
deferred financing schemes that could create future government
liabilities without the scrutiny of the regular budget process.
"Fiscal risks could also arise from the missing oversight of
Paraguay's pension funds and their significant actuarial
imbalances.  It is encouraging that the authorities plan to
address these risks promptly, starting with the planned creation
of the relevant superintendency.

"Turning to monetary policy, the current level of interest rates
is consistent with keeping inflation on target.  To strengthen the
transmission of monetary policy, it will be instrumental to
further reduce excess overnight liquidity and develop a more
active money market, while encouraging gradual de-dollarization.

In addition, we welcome the central bank's intention to make its
sales of government foreign-currency receipts more predictable,
distinguishing them clearly from occasional discretionary
intervention within the flexible exchange rate regime.

"Credit growth has slowed from the peaks of recent years but
remains strong, amid signs of rising indebtedness in the consumer
segment.  To contain the resulting risks, lenders should be
required to observe prudent limits on households' debt servicing
capacity.  Other areas for stepped-up oversight include foreign-
currency lending to borrowers that are not well hedged against
exchange rate risk; and the proper recognition of credit risk in
renewed, refinanced, and restructured loans.

"In this context, the proposed revision of the central bank and
banking laws is essential to put risk-based regulation and
supervision on a robust legal basis.  A related priority is to
strengthen the governance and resources of the cooperatives
regulator, along with the creation of a system-wide creditor

"We are grateful to all our counterparts for their kind
hospitality and the open and fruitful dialogue."


PERU: Plans to Limit Bets Against Sol in Derivatives Market
John Quigley at Bloomberg News reports that Peru plans limits on
currency derivative trading to smooth out swings in the sol as
policy makers seek to lower interest rates, central bank President
Julio Velarde said.

The limits will be announced within the next month and may help
reduce volatility in the Peruvian currency in 2015, Mr. Velarde
told reporters in Lima, according to Bloomberg News.  Investors
buying dollars in the derivatives market as they bet against the
sol is the main reason for declines in the local currency, Mr.
Velarde said, Bloomberg News relates.

The currency is trading at its weakest level in more than five
years as Peru's economy slows and the Federal Reserve moves toward
raising interest rates, Bloomberg News discloses.  "Excessive"
volatility in the currency market last week prevented the central
bank from cutting rates at its Dec. 11 meeting, Bloomberg News
quoted Mr. Velarde as saying.

"We're taking these measures specifically to give us more room in
monetary policy," Mr. Velarde said, Bloomberg News relays.  "The
outlook for next year is for volatility.  It's hard to know how
much, but there's going to be volatility for sure," Mr. Velarde

Bloomberg News notes that the monetary authority has sold US$4
billion in U.S. currency this year and introduced currency swaps
to bolster the sol, which has fallen 5.5 percent against the
greenback in 2014.

Bloomberg News relays that Mr. Velarde said the bank is also
studying measures to reduce bank lending in U.S. currency next
year.  The central bank seeks to avoid companies that have
revenues in soles taking out loans in dollars, Bloomberg News
says.  The measures, which could be related to provisions or
reserve requirements, will be announced at the end of this month,
Mr. Velarde, Bloomberg News says.

Outstanding loans in dollars rose 1.8 percent from a year earlier
in October to US$29.4 billion, representing 39 percent of total
credit, according to the central bank, Bloomberg News says.

The bank is targeting a reduction in dollar-denominated credit of
about 20 percent next year, Mr. Velarde said, Bloomberg News

Half of all company loans are in dollars, blunting the impact of
rate cuts on the cost of borrowing, Mr. Velarde said, Bloomberg
News relates.

"That fine line between what happens in the currency market and
what happens with interest rate" will continue to drive the bank's
actions next year, Mr. Velarde added, notes the report.

P U E R T O    R I C O

LIBERTY CABLEVISION: Moody's Affirms B3 Corporate Family Rating
Moody's Investors Service affirmed the B3 Corporate Family Rating
(CFR) and B3-PD Probability of Default Rating of Liberty
Cablevision of Puerto Rico LLC (LCPR). The action follows the
announced plan of LCPR's owners, Liberty Global plc (Liberty
Global, Ba3 stable) and Searchlight Capital Partners, L.P.
(Searchlight) to acquire Puerto Rico Cable Acquisition Company
Inc. (Choice Cable, B2 negative) for $272.5 million and to combine
the operations with LCPR. Moody's also affirmed the B2 ratings on
LCPR's first lien credit facility and the Caa2 ratings on its
second lien credit facility. LCPR expects to increase the first
lien term loan by approximately $225 million and the second lien
by approximately $32.5 million to help fund the acquisition. All
rated Choice Cable debt would be repaid in conjunction with the

A summary of the actions follows. If the transaction occurs as
proposed, Moody's expects to withdraw the B2 CFR and all other
ratings for Choice Cable upon close, since all its existing rated
debt would be repaid.

Liberty Cablevision of Puerto Rico LLC

Corporate Family Rating, Affirmed B3

Probability of Default Rating, Affirmed B3-PD

Senior Secured 1st lien Term Loan, Affirmed B2, LGD3

Senior Secured 1st lien Revolving Credit Facility, Affirmed B2,

Senior Secured 2nd lien Term Loan, Affirmed Caa2, LGD6

Outlook, Remains Stable

Ratings Rationale

Moody's estimates the primarily debt funded transaction will
increase LCPR's leverage to the mid 5 times debt-to-EBITDA range
from the low 5 times. However, the combination would create an
island wide operator, facilitating operating synergies and an
improved ability to serve the commercial market. Also, Moody's
believes the transaction could be free cash flow accretive, given
Choice Cable's stronger free cash flow profile and that the
incremental debt adds only approximately $13 million to annual
interest expense. Notwithstanding some challenges in the
integration of OneLink assets acquired in November 2012, Moody's
believes Liberty Global's track record of acquisitions minimizes
operational risk. These factors support the affirmation of the B3

Nevertheless, LCPR's weak capital structure provides minimal
flexibility for managing the weak economic and demographic trends
in Puerto Rico, which Moody's believes will constrain subscriber

LCPR reported subscriber growth over the past year despite these
conditions, but Choice Cable's subscriber base is shrinking. Also,
Moody's believes operating metrics such as revenue per homes
passed and subscriber penetration will remain well below stateside
US cable operating peers. Geographic concentration and lack of
scale also constrain the rating, although the company benefits
from the scale of its 60% owner Liberty Global, plc. Furthermore,
the combination creates scale in the Puerto Rican market, enabling
consistent, cost effective marketing across the region and
programming cost synergies.

The stable outlook assumes the combined entity will achieve modest
organic EBITDA growth, generate positive free cash flow, and
maintain adequate or better liquidity.

Moody's would consider a positive rating action with expectations
for sustained leverage around 5 times debt-to-EBITDA or better and
sustained free cash flow-to-debt above 3%. An upgrade would also
require expectations for adequate or better liquidity and a
management commitment to maintaining the stronger credit profile,
including the ability and willingness to offset negative economic
and demographic trends in Puerto Rico which could depress growth
prospects with debt reduction.

An increase in leverage to the high 6 times range, whether due to
debt financed acquisitions or dividends or fundamental operating
weakness, or deterioration of the liquidity profile would likely
warrant a negative rating action.

Liberty Cablevision of Puerto Rico LLC (LCPR) provides video, high
speed data, and telephone services to residential and commercial
customers in Puerto Rico. The company is indirectly 60% owned by
LGI Broadband Operations, Inc. an entity 100% owned by Liberty
Global plc (Ba3 stable) and 40% owned by Searchlight Capital
Partners L.P. Its annual revenue is approximately $300 million,
and as of September 30 the company had approximately 217,900
video, 205,300 high speed data and 154,200 phone RGUs.

Puerto Rico Cable Acquisition Company, Inc., operating under the
brand name Choice Cable, provides video, high speed data, and
voice services to approximately 113,900 residential and commercial
customers in the southern and western regions of Puerto Rico. Its
annual revenue is approximately $85 million, and the company is
owned by Spectrum Equity and Patriot Media. Executives from
Patriot Media, who run RCN Telecom Services LLC (B2 stable) and
Grande Communications Networks LLC (B2 stable), manage Choice

The principal methodology used in these ratings was Global Pay
Television - Cable and Direct-to-Home Satellite Operators
published in April 2013. Other methodologies used include Loss
Given Default for Speculative-Grade Non-Financial Companies in the
U.S., Canada and EMEA published in June 2009.

UNIV. OF PUERTO RICO: S&P Puts 'BB' Rev. Bond Rating on Watch Neg.
Standard & Poor's Ratings Services placed its 'BB' long-term
rating on the University of Puerto Rico's (UPR) existing
university system revenue bonds on CreditWatch with negative
implications.  Some of these bonds were issued by the Puerto Rico
Industrial, Tourist, Educational, Medical, & Environmental Control
Facilities Finance Authority.

"This CreditWatch action follows our repeated attempts to obtain
timely information of satisfactory quality to maintain our rating
on the bonds in accordance with our applicable criteria and
policies," said Standard & Poor's credit analyst Bianca Gaytan-

If UPR officials fail to provide us with the requested information
by Dec. 30, 2014, S&P will likely suspend the affected rating,
preceded by, in accordance with its policies, any change to the
rating we consider appropriate given the available information.


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


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.

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