/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150126.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, January 26, 2015, Vol. 16, No. 017 Headlines A R G E N T I N A CHUBUT: Province Plan to Cut Royalties Hits Snag B R A Z I L PETROLEO BRASILEIRO: Still Tallying Up Losses From Kickback Scheme C A Y M A N I S L A N D S AL RAED: Members Receive Wind-Up Report ARDEN PROPPARTNERS: Shareholder Receives Wind-Up Report BOLERO INVESTMENTS: Members Receive Wind-Up Report BRIGHT LIGHT: Members Receive Wind-Up Report CHARLES LIMITED: Members Receive Wind-Up Report GRAND ESCADA: Members Receive Wind-Up Report GRAND PINNACLE: Members Receive Wind-Up Report LATIN AMERICA BIOENERGY: Members Receive Wind-Up Report LORIENT SHIPPING: Shareholder Receives Wind-Up Report RUSSOLA INTERNATIONAL: Members Receive Wind-Up Report SIMONA LTD: Members Receive Wind-Up Report SUNTECH POWER: Court to Hear Wind-Up Petition on Jan. 27 TURBO VENTURES: Members Receive Wind-Up Report VERIPOS INC: Members Receive Wind-Up Report YONDER STAR: Members Receive Wind-Up Report C O S T A R I C A COSTA RICA: Fitch Revises Outlook to Neg; Affirms IDRs at 'BB+' C U B A CUBA: Easing of US Restrictions is Credit Positive, Says Moody's D O M I N I C A N R E P U B L I C DOMINICAN REP: Gives RD$70MM to Mitigate Drought Effects in Bani G U A T E M A L A BANCO DE DESARROLLO: Fitch Affirms 'BB' Issuer Default Rating J A M A I C A JAMAICA: JMA Welcomes Policy Reversal on CAF JAMAICA: Oil Price Drop Will Boost Economy, Minister Says P E R U LOS PORTALES: S&P Lowers CCR to 'B'; Outlook Negative T R I N I D A D & T O B A G O CARIBBEAN AIRLINES: Corrects Auditing Issues X X X X X X X X X * BOND PRICING: For the Week From Jan. 12 to Jan. 16, 2015 - - - - - ================= A R G E N T I N A ================= CHUBUT: Province Plan to Cut Royalties Hits Snag ------------------------------------------------ Pablo Gonzalez at Bloomberg News reports that Chubut, Argentina's biggest oil-exporting province, is running into an unexpected obstacle for a plan to cut royalties -- it failed to get mandatory approval from its bond trustee, a letter sent by the trustee shows. Chubut Economy Minister Ricardo Bestene was sent a letter from Banco de Valores SA, trustee of Chubut's 7.75 percent bond due 2020, reminding him of terms preventing a lowering of royalties from the province's largest field, according to a copy of the letter obtained by Bloomberg News. Bond payments come from royalties from the Cerro Dragon field in Chubut. Chubut Oil Minister Ezequiel Cufre said Jan. 12 that the province would cut royalties paid by producers by as much as 50 percent for new production in a bid to keep output from falling amid lower prices, according to Bloomberg News. Cerro Dragon's operator Pan American Energy LLC provided 38 percent of Chubut's royalties in November. "The province has signed a contract with the trustee saying it would not cut royalties," Banco de Valores said in the letter, Bloomberg News notes. "We are obliged to alert the province to take the needed measures in order to not affect this obligation," Banco de Valores added. A Chubut bond due in 2019 also includes the same covenant that prohibits the province from lowering royalties, according to data compiled by Bloomberg. Chubut province has $284 million outstanding in the two bonds. Cerro Dragon produced 96 percent of Chubut's gas in November and 46 percent of its crude, Bloomberg News notes. The field's oil output slid by 3 percent in November from the prior month while gas production fell 4 percent, according to the most recent figures received by the bond trustee, Bloomberg News says. Royalties tumbled 3 percent in the period to ARS205.3 million ($23.8 million.) The bonds were sold in 2010. The province saw its export price slide 48 percent to $51.06 a barrel, based on last year's average price for Brent oil, the international benchmark it uses, Bloomberg News adds. =========== B R A Z I L =========== PETROLEO BRASILEIRO: Still Tallying Up Losses From Kickback Scheme ------------------------------------------------------------------ EFE News reports that Brazilian state-controlled oil company Petroleo Brasileiro S.A. said it is still calculating the scale of its losses stemming from a massive kickback scheme, as well as the size of the investment scale-back it will need to carry out due to its financial difficulties. In a filing with the Sao Paulo Stock Exchange, Petrobras said it could not confirm the figures published Thursday by the daily O Globo, which reported -- citing a government source -- that the company would take a BRL10-billion (some US$3.85-billion) charge in its delayed third-quarter results. 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 Cut Petrobras S.A.'s baseline credit assessment to ba1. ========================== C A Y M A N I S L A N D S ========================== AL RAED: Members Receive Wind-Up Report --------------------------------------- The members of Al Raed Ltd. received on Dec. 23, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands ARDEN PROPPARTNERS: Shareholder Receives Wind-Up Report ------------------------------------------------------- The shareholder of Arden Proppartners Global Macro, Ltd. received on Dec. 23, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ogier c/o Jody Powery-Gilbert Telephone: (345) 815-1763 Facsimile: (345) 949-9877 BOLERO INVESTMENTS: Members Receive Wind-Up Report -------------------------------------------------- The members of Bolero Investments Limited received on Dec. 23, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands BRIGHT LIGHT: Members Receive Wind-Up Report -------------------------------------------- The members of Bright Light Limited received on Dec. 23, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands CHARLES LIMITED: Members Receive Wind-Up Report ----------------------------------------------- The members of Charles Limited received on Dec. 23, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands GRAND ESCADA: Members Receive Wind-Up Report -------------------------------------------- The members of Grand Escada Investments 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: Appleby Trust (Cayman) Ltd. c/o Richard Gordon Telephone: +1 (345) 949 4900 75 Fort Street PO Box 1350 Grand Cayman KY1-1108 Cayman Islands GRAND PINNACLE: Members Receive Wind-Up Report ---------------------------------------------- The members of Grand Pinnacle Investments Ltd. received on Dec. 22, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Appleby Trust (Cayman) Ltd. c/o Richard Gordon Telephone: +1 (345) 949 4900 75 Fort Street PO Box 1350 Grand Cayman KY1-1108 Cayman Islands LATIN AMERICA BIOENERGY: Members Receive Wind-Up Report ------------------------------------------------------- The members of Latin America Bioenergy Fund, Ltd. received on Dec. 22, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Crecera Finance Management Company, LLC c/o Matthew Taber Telephone: +1 (345) 949 4900 Appleby Trust (Cayman) Ltd. 75 Fort Street PO Box 1350 Grand Cayman KY1-1108 Cayman Islands LORIENT SHIPPING: Shareholder Receives Wind-Up Report ----------------------------------------------------- The shareholder of Lorient Shipping Co. received on Dec. 29, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Bruce A. Mcallister c/o Alley, Maass, Rogers & Lindsay, P.A. 340 Royal Poinciana Way, Suite 321 Palm Beach FL 33480 United States of America Telephone: +1 (651) 659 1770 Facsimile: +1 (651) 804 4628 RUSSOLA INTERNATIONAL: Members Receive Wind-Up Report ----------------------------------------------------- The members of Russola International Ltd. received on Dec. 17, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Morval Bank & Trust Cayman Ltd. c/o Cherrie Graham Telephone: +1 (345) 949 9808 Facsimile: +1 (345) 949 9793 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands SIMONA LTD: Members Receive Wind-Up Report ------------------------------------------ The members of Simona Ltd. received on Dec. 17, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Morval Bank & Trust Cayman Ltd. c/o Cherrie Graham Telephone: +1 (345) 949 9808 Facsimile: +1 (345) 949 9793 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands SUNTECH POWER: Court to Hear Wind-Up Petition on Jan. 27 -------------------------------------------------------- An amended petition to wind up the operations of Suntech Power Holdings Co. Ltd. will be heard before the Grand Court of Cayman Islands on Jan. 27, 2015, at 10:00 a.m. The amended petition was filed by Christopher Michael Nacson of 888/27 Sol4, PS Home, Lau Na Di, Tumbol Baan Phat, Khon Kaan 40000, Thailand. TURBO VENTURES: Members Receive Wind-Up Report ---------------------------------------------- The members of Turbo Ventures Ltd. received on Dec. 22, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Appleby Trust (Cayman) Ltd. c/o Richard Gordon Telephone: +1 (345) 949 4900 75 Fort Street PO Box 1350 Grand Cayman KY1-1108 Cayman Islands VERIPOS INC: Members Receive Wind-Up Report ------------------------------------------- The members of Veripos Inc. received on Dec. 22, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Appleby Trust (Cayman) Ltd c/o Richard Gordon Telephone: +1 (345) 949 4900 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands YONDER STAR: Members Receive Wind-Up Report ------------------------------------------- The members of Yonder Star Limited received on Dec. 23, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Buchanan Limited P.O. Box 1170, George Town Grand Cayman KY1-1102 Cayman Islands =================== C O S T A R I C A =================== COSTA RICA: Fitch Revises Outlook to Neg; Affirms IDRs at 'BB+' --------------------------------------------------------------- Fitch Ratings has revised the Rating Outlook on Costa Rica's Long- term foreign and local currency Issuer Default Ratings (IDRs) to Negative from Stable and affirmed the IDRs at 'BB+'. The issue ratings on Costa Rica's senior unsecured foreign and local currency bonds have been affirmed at 'BB+'. The Short-term foreign currency IDR has been affirmed at 'B' and the Country Ceiling at 'BBB-'. KEY RATING DRIVERS The revision of the Outlook to Negative reflects the following: Costa Rica's high structural fiscal deficits, slower economic growth and difficulties in implementing tax reforms over the last decade have led to worsening debt dynamics. The sovereign maintains access to debt markets and multilateral credit lines. However, financing conditions are deteriorating due to the lower absorption capacity of the domestic public sector investor base and the rising pressure on international interest rates. The budget deficit widened for the fifth consecutive year in 2013- 2014, climbing to an estimated 5.6% of GDP, the weakest outturn since 1980. This reflects a structural deterioration in public finances. Fiscal revenue is among the lowest among rating peers owing to weak compliance and a generalized system of incentives and tax exemptions. Spending rigidity has worsened since 2008 due to increases in public sector payroll and social transfers. Interest payments to revenue exceeded 17% in 2014, more than double the 'BB' median of 7%. Fitch expects fiscal deficits to remain elevated at 6% of GDP in 2015-2016 in the absence of material progress on tax-enhancing measures. The incoming administration aims at a 3.8% of GDP primary fiscal deficit reduction by 2019 through cost-containment, anti-evasion efforts, efficiency gains in tax administration and an overhaul of the direct and indirect taxation systems. As with various unsuccessful attempts over the last decade, congressional gridlock and adverse court rulings could delay, dilute or block fiscal reform. The new composition of the legislative assembly is more fragmented than in the past, increasing the challenges to secure the passage of a tax reform. Debt dynamics and financing conditions have deteriorated faster than those of peers. Consolidated general government debt rose to 34.6% of GDP in 2014 from 20% in 2008. Fitch forecasts that the debt burden could surpass the 'BB' median of 40% in 2016 and would not stabilise before 2019, even if a frontloaded budget adjustment is assumed. Growth underperformance and rising borrowings costs on domestic and external debt pose downside risks to the pace of fiscal consolidation. Fitch forecasts that economic activity could decelerate below the estimated potential of 4% in 2015-2016, mainly affected by the relocation of a large multinational microprocessors manufacturing plant to Asia. Despite the continued success of the country's investment promotion strategy, bureaucratic red tape, weak competition in the energy and financial services markets and long- standing infrastructure bottlenecks constrain growth prospects. Costa Rica's 'BB+' IDRs are underpinned by the following key rating factors: Costa Rica continues to attract large foreign investment into high value-added manufacturing and services industries. The country remains a competitive jurisdiction among regional and rating peers thanks to its strong social development indicators, well-educated workforce, political stability, rule of law and active free-trade agreements with China and the U.S. Adequate international reserves and a well-diversified export base enhance the economy's capacity to absorb adverse terms-of-trade shocks. The sovereign's net external creditor status contrasts favourably with the median debtor position of the 'BB' category. High fiscal deficits, limited albeit improving exchange rate flexibility, financial dollarization and quasi-fiscal losses at the central bank constrain monetary policy. Despite tightening policy rates, inflation ended 2014 at 5.1%, at the upper band of the official target of 3%-5%, mainly as a result of the rapid pass-through from currency depreciation to domestic prices. Dollarization of credit remains an important source of credit risk for financial institutions, as nearly half of private sector loans are denominated in foreign currency. RATING SENSITIVITIES The following risk factors individually, or collectively, could trigger a negative rating action: --Failure to implement a primary fiscal deficit reduction consistent with a sustained improvement in debt trajectory; --Evidence of sovereign financing constraints in the domestic or international debt markets; --A marked deterioration in the business or political environment that impairs foreign investment and growth prospects. The Outlook is Negative. Consequently, Fitch's sensitivity analysis does not currently anticipate developments with a high likelihood of leading to a positive rating change. Future developments that could individually, or collectively, result in a stabilization of the Outlook include: --Greater confidence on the government's fiscal consolidation strategy that improves the prospects for debt stabilization in the medium-term. KEY ASSUMPTIONS Costa Rica's ratings are based on a number of key assumptions: Fitch assumes that market access will remain available to finance Costa Rica's high financing needs in 2015-2016. Fitch's economic growth and external forecasts factor in that the continued strengthening of the U.S. economy could improve exports and tourism activity in Costa Rica. Similarly, lower international fuel prices could reduce imports and benefit consumer spending. ======= C U B A ======= CUBA: Easing of US Restrictions is Credit Positive, Says Moody's ---------------------------------------------------------------- The measures the US government recently announced scaling back its decades-old economic embargo are positive for Cuba's credit quality, says Moody's Investors Service in a new report. Moody's rates Cuba Caa2 with a stable outlook. The looser restrictions should give the Cuban economy a lift that more than offsets the negative impact of potentially less assistance from Venezuela, its key ally, which is going through severe economic stress because of lower oil prices. "The shift in US policy toward Cuba will have a positive effect on economic activity over the next 1-2 years, breathing new life into Cuba's economy, as it will likely more than offset the potential decrease in Venezuelan financial assistance," says , Jaime Reusche, a Moody's Vice Present -- Senior Analyst in the report "Cuba: US Eases Travel And Other Restrictions, A Credit Positive." Official statistics show the Cuban economy expanding 2.7% in 2013, following 3.0% growth in 2012. Moody's estimates that growth slowed markedly to 0.8% in 2014 due to a decline in terms of trade, economic and political instability in Venezuela, and also due to much slower reforms momentum in Cuba. Loosening restrictions on US visitors should help the growth of Cuba's burgeoning tourist industry, which in the Caribbean already lags only the Dominican Republic in share of stay-over visitors and the year-over-year growth in visitors, according to the Caribbean Tourism Organization. However, Cuba's tourist infrastructure tends to cater to more budget-conscious tourists, and Moody's says growth in US visitors will be slow and require significant investment to nurture. "Nevertheless, given its already strong position and attractive pricing, depending on how fast and in what direction the Cuban tourism sector develops, the country could become a growing competitor to established higher-end destinations such as the Dominican Republic (B1 stable), the region's largest tourism market," says Moody's Reusche. Under the new framework, which came into force January 16, US citizens and permanent residents are now allowed to travel to Cuba for any of a dozen specific reasons without having to first obtain a specific license from the US government and travelers are permitted to bring back up to $400 in total goods. General tourist travel, however, is still prohibited. Among additional changes were an increase in the limit of remittances to family members in Cuba, which Moody's forecasts could double over the next 2-3 years from an estimated $3.5 billion in 2013, allowing US financial institutions to open correspondent accounts in Cuban banks, and permitting the use of US credit and debit cards in Cuba. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REP: Gives RD$70MM to Mitigate Drought Effects in Bani ---------------------------------------------------------------- Dominican Today reports that Dominican Republic President Danilo Medina disclosed the allocation of RD$70 million to mitigate the drought affecting producers in Peravia province, who during the last six months have being asking for millions of pesos to deal with lack of water. Medina's decision took place at the end of a meeting held at the National Palace with farmers, ranchers, agricultural officials, the water sector, and Peravia's Governor and Senator, according to Dominican Today. The report notes that Agriculture Minister Angel Estevez said the president discussed the situation and agreed to build wells and rehabilitate the Marcos A. Cabral and Juan Caballero channels, as well as clearing out the weeds, building damaged gates and leakage correction. ================= G U A T E M A L A ================= BANCO DE DESARROLLO: Fitch Affirms 'BB' Issuer Default Rating ------------------------------------------------------------- Fitch Ratings has affirmed Banco de Desarrollo Rural's (Banrural) Issuer Default Rating (IDR) at 'BB', short-term IDR at 'B', and Viability Rating (VR) at 'bb'. The Rating Outlook is Stable. Banrural's National Ratings were also affirmed. KEY RATING DRIVERS - VR, IDRs, AND NATIONAL RATINGS Banrural's VR drives its IDR and National Ratings. The key rating drivers with the highest influence on the bank's VR include its robust profitability, solid capitalization and weaker operating environment. The ratings also take into account Banrural's significant government exposure. The Stable Outlook reflects Fitch's expectation of no material changes in the bank's overall financial profile over the rating horizon. In Fitch's opinion, Banrural maintains good capital levels thanks to its solid capital generation capacity and moderate payout of dividends. Its Fitch core capital to risk-weighted assets stood at 15.7%, comparing positively with its main local peers and similarly rated international banks. Banrural's growth is dynamic and often exceeds the market; however, in the agency's view, it is in line with the bank's high internal capital generation capacity. Banrural's profitability is above similarly rated peers and consistently exceeds the Guatemalan market average. The bank's ROAA of 2.31% reflects the high net interest margins characteristic of its microfinance orientation. Banrural's moderate efficiency ratios and relatively limited income diversification are partially compensated by sustainably low credit costs. Banrural's good credit quality reflects the bank's adequate underwriting practice; effective collection process and employee incentive programs to support low delinquency levels. Non- performing loans account for a low 0.67% of total loans and are sufficiently covered with reserves. Banrural's loan portfolio concentration is moderate, as is its foreign currency exposure. In Fitch's opinion, the bank's capacity to maintain its stable and diversified deposit base is a result of the strength of the bank's franchise, its ample geographic coverage in rural areas and unique capacity to continue growing in those regions. Customer deposits are stable and maintain a positive trend. Banrural maintains moderate exposure to public sector deposits (22% of total deposits), and significant concentration in government bonds (54% of total investments). The Guatemalan Government also holds a 17.2% stake in Banrural. Fitch views Banrural's liquidity coverage as adequate, in light of its stable deposit base. A high proportion of loans with duration below five years minimize liquidity gaps in the short term. Banrural's loan to deposits ratio is below market average at 75% and liquidity coverage of deposits and short-term funding of 43% also compares favorably with its peers. High concentration in government securities is a concern but is unlikely to change given the limited investment options in Guatemala. RATING SENSITIVITIES - IDRS, VR AND NATIONAL RATINGS Banrural's IDRs and VR are at the same level as Guatemala's sovereign rating. Given the operating environment's high influence on Banrural's VR as well as concentrations with the government, changes in the sovereign's ratings may result in a similar action on Banrural's ratings. Fitch does not anticipate changes in the bank's credit profile that may lead to a modification of its ratings. However, the unlikely scenario of a sharp decline in capitalization (below 10%) and a period of sustained low earnings (operating ROAA close to 1%) may result in a downgrade of the bank's VR, IDR and national ratings. As the sovereign currently has a Stable Outlook, upside potential for Banrurals' ratings is limited. KEY RATING DRIVERS - SUPPORT RATING AND SUPPORT RATING FLOOR Banrural's support rating (SR) of '3' reflects Fitch's opinion that there is a moderate probability of support from the state, given Banrural's systemic importance in the banking system. This probability is limited by Guatemala's sovereign rating of 'BB'/Outlook Stable. The bank's Support Rating Floor (SRF) is one notch below the sovereign rating at 'BB-'. The bank's SRF reflects the moderate financial flexibility of the government to provide support to systemically important banks in the country and the significant presence of foreign currency funding. RATING SENSITIVITIES - SUPPORT RATING AND SUPPORT RATING FLOOR Banrural's support SR and SRF are sensitive to changes in the sovereign rating. Fitch affirms the following ratings: Banco de Desarrollo Rural: --Long-term Issuer Default Rating (IDR) at 'BB'; Outlook Stable; --Short-term IDR at 'B'; --Local currency long-term IDR at 'BB'; Outlook Stable; --Local currency short-term IDR at 'B'; --Viability Rating at 'bb'; --Support Rating at '3'; --Support Rating Floor at 'BB-'; --National long-term rating at 'AA+(gtm)'; Outlook Stable; --National short-term rating at 'F1+(gtm)'. ============= J A M A I C A ============= JAMAICA: JMA Welcomes Policy Reversal on CAF -------------------------------------------- RJR News reports that Jamaica Manufacturers' Association (JMA) has welcomed the move by the Government to apply a 50% discount to the Customs Administration Fee (CAF) on raw materials and intermediate goods. The reduction takes effect February 1. According to Brian Pengelley, JMA President, manufacturers had been adversely affected by the removal of the incentive, in respect of intermediate goods, in December, the report notes. Mr. Pengelley said that the decision by the government to reverse that decision will assist in managing input costs to manufacturers and consumers as well as encourage investment in the sector, according to RJR News. The report relates that Mr. Pengelley said the JMA will continue to lobby for initiatives that will positively impact the competitiveness of the sector. Last May, the JMA urged the government to reconsider the CAF on raw materials, which resulted in a fee hike of up to 500% percent to clear containers, the report adds. As reported in the Troubled Company Reporter-Latin America on Sept. 23, 2014, Standard & Poor's Ratings Services affirmed its 'B-' long-term foreign and local currency and 'B' short-term foreign and local currency sovereign credit ratings on Jamaica. At the same time, S&P revised the outlook on the long-term sovereign credit ratings to positive from stable. In addition, S&P affirmed its 'B' transfer and convertibility (T&C) assessment. JAMAICA: Oil Price Drop Will Boost Economy, Minister Says --------------------------------------------------------- RJR News reports that Finance Minister Dr. Peter Phillips is predicting that the ongoing fall in fuel prices will provide a stimulus for the Jamaican economy. The price of oil has fallen 50% in the last six months, with OPEC, the producers' cartel, having failed to agree on cuts in production to stem the downward spiral, according to RJR News. The report notes that Minister Philipps, during an address in Kingston, said he expected the benefit will primarily go to consumers, in the first instance, but that they, in turn, were likely to spend that money, "and provide, in a sense, a stimulus; unexpected, but very much welcomed." The report relays that Minister Philipps said preliminary indications suggest there has recently been significant capital investment as well as an increase in demand for intermediate goods. Minister Philipps reported as well that imports of consumer goods are down and have been replaced by an increase in domestic supplies. As reported in the Troubled Company Reporter-Latin America on Sept. 23, 2014, Standard & Poor's Ratings Services affirmed its 'B-' long-term foreign and local currency and 'B' short-term foreign and local currency sovereign credit ratings on Jamaica. At the same time, S&P revised the outlook on the long-term sovereign credit ratings to positive from stable. In addition, S&P affirmed its 'B' transfer and convertibility (T&C) assessment. ======= P E R U ======= LOS PORTALES: S&P Lowers CCR to 'B'; Outlook Negative ----------------------------------------------------- Standard & Poor's Ratings Services lowered its corporate credit rating on Los Portales S.A. (Portales) to 'B' from 'B+'. The outlook is negative. The downgrade results from Portales' failure to complete its refinancing plan, which S&P expected since the first half of 2014. For the last 10 months, Portales has only rolled over its debt maturities through short-term funding, which poses liquidity risks. As of Dec. 31, 2014, the bulk of Portales' debt is short- term with a weighted average maturity of 2.4 years. The ratings on Portales reflect S&P's assessment of its "weak" business risk profile and "aggressive" financial risk profile. S&P considers Portales' leading position--with about a 30% market share in land development in Peru--its somewhat diversified portfolio among the three main business lines, and the predictability of its cash flows as per its customers payment schedules as the key strengths. However, its reduced scope of operations in Lima and Peru's other large cities and the risks of financing about 80% of its lot sales, which currently limit EBITDA margin to about 23%, constrain S&P's business risk profile assessment. Although S&P expects credit metrics to remain in line with the "aggressive" financial risk profile category, Portales' delay in improving its maturity profile during the last 12 months pressures its capital structure and liquidity. S&P assess Portales' liquidity as "less than adequate." Under S&P's base-case scenario, sources of liquidity won't be sufficient to cover its uses and won't cope with a 15% EBITDA decline. S&P could revise its liquidity assessment to "weak" over the next few months if the company fails to complete its long-term debt refinancing. =============================== T R I N I D A D & T O B A G O =============================== CARIBBEAN AIRLINES: Corrects Auditing Issues -------------------------------------------- RJR News reports that Caribbean Airlines Limited has reportedly rectified problems which delayed the timely release of its audited financial statements. Larry Howai, Trinidad & Tobago's Finance Minister, disclosed on Jan. 21 that the airline had addressed backlogs identified by auditors KPMG, according to RJR News. The report notes that audited statements for the 2012 financial year are now due by March while statements for 2013 should be ready by June. Mr. Howai said critical systems at CAL have been improved while new ones are to be used. They concern cargo, credit card sales and unearned revenue, the report relates. It had been reported that backlogs in the processing of cargo/airway billings, credit card transactions, as well as duplications and inconsistencies created a headache for auditors scrutinizing the accounts of Caribbean Airlines for the 2011 financial year, the report adds. About Caribbean Airlines Caribbean Airlines Limited -- http://www.caribbean-airlines.com/ -- provides passenger airline services in the Caribbean, South America, and North America. The company also offers freighter services for perishables, fish and seafood, live animals, human remains, and dangerous goods. In addition, it operates a duty free store in Trinidad. Caribbean Airlines Limited was founded in 2006 and is based in Piarco, Trinidad and Tobago. As reported in the Troubled Company Reporter-Latin America on July 11, 2014, Trinidad and Tobago Newsday said that Caribbean Airlines is facing another loss. However, Finance Minister Larry Howai is hopeful the loss could be narrowed down to less than TT$100 million, according to Trinidad and Tobago Newsday. Mr. Howai noted the airline industry is not the easiest and many airlines have gone bankrupt at some point. Citing Caribbean360.com, the TCRLA on May 20, 2013, said Minister Howai said Caribbean Airlines Limited recorded losses estimated at US$70 million in 2012. In 2011, CAL had recorded losses of US43.7 million. ================= X X X X X X X X X ================= * BOND PRICING: For the Week From Jan. 12 to Jan. 16, 2015 ---------------------------------------------------------- Issuer Name Cpn Bid Price Maturity Date Country Curr ----------- --- --------- ------------- ------- ---- PDVSA 8.5 56.25 11/2/2017 VE USD PDVSA 12.75 53.5 2/17/2022 VE USD Kaisa Group Holdings Ltd 8.87 65.5 3/19/2018 CN USD Venezuela 12.75 52.5 8/23/2022 VE USD PDVSA 5.25 47.5 4/12/2017 VE USD PDVSA 5.37 34.65 4/12/2027 VE USD PDVSA 6 6.5 11/15/2026 VE USD Venezuela 5.75 61.5 2/26/2016 VE USD PDVSA 9.75 46 5/17/2035 VE USD Venezuela 11.95 49 8/5/2031 VE USD PDVSA 6 37.5 5/16/2024 VE USD Kaisa Group Holdings Ltd 9 82 6/6/2019 CN USD PDVSA 9 43.5 11/17/2021 VE USD PDVSA 5.5 36.9 4/12/2037 VE USD Venezuela 13.62 56 8/15/2018 VE USD Kaisa Group Holdings Ltd 10.25 69 1/8/2020 CN USD Kaisa Group Holdings Ltd 12.87 108 9/18/2017 CN USD Odebrecht Oil & Gas Finance Ltd 7 68 KY USD CSN Islands XII Corp 7 74.5 BR USD Venezuela 8.25 44 10/13/2024 VE USD Honghua Group Ltd 7.45 58.5 9/25/2019 CN USD PDVSA 5.12 53.48 10/28/2016 VE USD Venezuela 7.75 42.5 10/13/2019 VE USD Banco do Brasil SA/Cayman 6.25 75 KY USD Venezuela 7 44.5 12/1/2018 VE USD Venezuela 9 44.5 5/7/2023 VE USD Kaisa Group Holdings Ltd 6.87 74.423 4/22/2016 CN CNY Venezuela 9.37 44.5 1/13/2034 VE USD Venezuela 6 39 12/9/2020 VE USD Venezuela 7 40.5 3/31/2038 VE USD CA La Electricidad de Caracas 8.5 40 4/10/2018 VE USD Venezuela 9.25 44.5 5/7/2028 VE USD Offshore Group Investment Ltd 7.5 74.87 11/1/2019 KY USD Venezuela 7.65 35.5 4/21/2025 VE USD Automotores Gildemeister SA 8.25 45.87 5/24/2021 CL USD Kaisa Group Holdings Ltd 8 70 12/20/2015 CN CNY Venezuela 13.625 48 8/15/2018 VE USD Agile Property Holdings Ltd 8.25 75.05 CN USD McDermott International Inc 8 70.5 5/1/2021 US USD USJ Acucar e Alcool SA 9.875 73 11/9/2019 BR USD Tonon Bioenergia SA 9.25 62.3 1/24/2020 BR USD Offshore Group Investment Ltd 7.125 68.06 4/1/2023 KY USD Automotores Gildemeister SA 6.75 44.75 1/15/2023 CL USD SMU SA 7.75 76.5 2/8/2020 CL USD Mongolian Mining Corp 8.87 66.5 3/29/2017 MN USD Polarcus Ltd 8 40.08 6/7/2018 AE USD PSOS Finance Ltd 11.75 75 4/23/2018 KY USD PDVSA 8.5 57.45 11/2/2017 VE USD Herbalife Ltd 2 73.7 8/15/2019 US USD Cia Energetica de Sao Paulo 9.75 72.87 1/15/2015 BR BRL BA-CA Finance Cayman Ltd 1.21 63.249 KY EUR Hidili Industry International Development Ltd 8.625 76 11/4/2015 CN USD China Precious Metal Resources Holdings Co Ltd 7.25 52.067 2/4/2018 HK HKD Inversora de Electrica de Buenos Aires SA 6.5 28.5 9/26/2017 AR USD NQ Mobile Inc 4 70.448 10/15/2018 CN USD Glorious Property Holdings Ltd 13.25 71.971 3/4/2018 HK USD Kaisa Group Holdings Ltd 8.875 93.5 3/19/2018 CN USD PDVSA 6 37.63 11/15/2026 VE USD PDVSA 12.75 51.83 2/17/2022 VE USD Polarcus Ltd 8.9 39.854 7/8/2019 AE NOK Polarcus Ltd 2.87 68.7 4/27/2016 AE USD Empresa Distribuidora Y Comercializadora Norte 9.75 72.42 10/25/2022 AR USD PDVSA 6 39.65 5/16/2024 VE USD Argentina Bond 1.18 8.12 12/31/2038 AR ARS Venezuela Bond 13.625 50.941 8/15/2018 VE USD McDermott International Inc 8 84.5 5/1/2021 US USD Tonon Bioenergia SA 9.25 71 1/24/2020 BR USD Argentina Bonar Bonds 23.00 5.5 9/10/2015 AR ARS BCP Finance Co 2.15 61.25 KY EUR Newland International Properties Corp 9.5 32 7/3/2017 PA USD BA-CA Finance Cayman 2 Ltd 2.03 62.31 KY EUR Odebrecht Oil & Gas Finance Ltd 7 69 KY USD PDVSA 9 44 11/17/2021 VE USD Honghua Group Ltd 7.45 58.5 9/25/2019 CN USD Argentine Bonad Bonds 2.4 68 3/18/2018 AR USD Automotores Gildemeister SA 8.25 60 5/24/2021 CL USD PDVSA 9.75 43 5/17/2035 VE USD Automotores Gildemeister SA 6.75 59.5 1/15/2023 CL USD ESFG International Ltd 5.753 0.68 KY EUR Greenfields Petroleum Corp 9 20 5/31/2017 US CAD USJ Acucar e Alcool SA 9.87 73 11/9/2019 BR USD CSN Islands XII Corp 7 73.99 BR USD SMU SA 7.75 75.25 2/8/2020 CL USD Mongolian Mining Corp 8.875 66.5 3/29/2017 MN USD Banco do Brasil SA/Cayman 6.25 74 KY USD Argentina Bocon 2 42.288 1/3/2016 AR ARS Venezuela TICC Bond 6.25 73.195 4/6/2017 VE USD Hidili Industry International Development Ltd 8.625 75 11/4/2015 CN USD Cia Energetica de Sao Paulo 9.75 72.87 1/15/2015 BR BRL Venezuela TICC Bond 5.25 52.627 3/21/2019 VE USD Newland International Properties Corp 9.5 47 7/3/2017 PA USD Empresa Distribuidora Y Comercializadora Norte 9.75 72 10/25/2022 AR USD Banif Finance Ltd 1.449 KY EUR BPI Capital Finance Ltd 2.63 39.5 KY EUR Cia Cervecerias Unidas SA 4 51.90 12/1/2024 CL CLP Banco BPI SA/Cayman Islands 4.15 71.37 11/14/2035 KY EUR Argentina Bond 5.83 14 12/31/2033 AR ARS Cia Sud Americana de Vapores SA 6.4 58.45 10/1/2022 CL CLP Venezuela TICC Bond 9.12 74.29 9/15/2017 VE USD Venezuela Bond 9.25 48 9/15/2027 VE USD Ruta del Bosque Sociedad Concesionaria SA 6.3 69.2 3/15/2021 CL CLP Talca Chillan Sociedad Concesionaria SA 2.75 47.78 12/15/2019 CL CLP Venezuela Bond 11.75 50.5 10/21/2026 VE USD Provincia de Rio Negro 1.6716 72 5/4/2024 AR ARS Provincia Corrientes 0.0204 8 1/1/2016 AR ARS Provincia del Chaco 4 61.25 12/4/2026 AR USD Decimo Primer Fideicomiso de Bonos de Prestamos Hipotecar 4.54 59 10/25/2041 PA USD Decimo Primer Fideicomiso de Bonos de Prestamos Hipotecar 6 70.8 10/25/2041 PA USD Empresa de los Ferrocarriles del Estado 6.5 69.91 1/1/2026 CL CLP *********** 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 2015. 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 * * *