/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150202.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, February 2, 2015, Vol. 16, No. 022 Headlines B A H A M A S BRITISH AMERICAN: Nears Deal Over $10-Mil. Investment Gone Bad B R A Z I L BANCO ABC: S&P Affirms 'BB+' Rating; Outlook Stable PETROBRAS GLOBAL: Moody's Lowers Sub. Shelf Rating to (P)Ba1 VIRGOLINO DE OLIVEIRA: S&P Cuts Note Rating to D on Missed Payment C A Y M A N I S L A N D S ARTEPHIUS FUND: Shareholders Receive Wind-Up Report GRACCHI DIVERSIFIED: Shareholders Receive Wind-Up Report GRACCHI DIVERSIFIED MASTER: Shareholders Receive Wind-Up Report HUNT OMAN: Shareholders Receive Wind-Up Report INTEGRITY INDEPENDENT: Shareholders Receive Wind-Up Report MARATHON ASIA: Shareholders Receive Wind-Up Report MARATHON ASIA MASTER: Shareholders Receive Wind-Up Report MARATHON SPECIAL: Shareholders Receive Wind-Up Report MARATHON SPECIAL MASTER: Shareholders Receive Wind-Up Report MARATHON DISTRESSED: Shareholders Receive Wind-Up Report MARATHON EM: Shareholders Receive Wind-Up Report MARATHON EM MASTER: Shareholders Receive Wind-Up Report TEMPORIS CLEAN: Shareholder Receives Wind-Up Report TEMPORIS CLEAN MASTER: Shareholder Receives Wind-Up Report TIEDEMANN/PIKE: Shareholder Receives Wind-Up Report UNIVERSA ASYMMETRY: Shareholders Receive Wind-Up Report C O L O M B I A COLOMBIA: Holds Policy Rate at 4.5% and Cuts Growth Forecast C O S T A R I C A COSTA RICA: Colon to Float Against Dollar as Bank Releases Brake D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Pays Most of US$4.1 Billion Oil Debt J A M A I C A JAMAICA: BSJ Removes Certificate Requirement for Some Food Exports UC RUSAL: No Immediate Plan to Restart Idle Aluminum Smelters M E X I C O MEXICO: Government to Cut 2015 Budget by $8.57 Billion P A R A G U A Y PARAGUAY: Fitch Raises IDR to 'BB'; Outlook Stable P U E R T O R I C O ALCO CORP: Complies with Reports; Bid to Dismiss Deemed Moot T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Inflation Creeps Up to 8.5% TRINIDAD & TOBAGO: Promises to Pump More US$ Into System X X X X X X X X X * BOND PRICING: For the Week From Jan. 19 to Jan. 23, 2015 - - - - - ============= B A H A M A S ============= BRITISH AMERICAN: Nears Deal Over $10-Mil. Investment Gone Bad -------------------------------------------------------------- Law360 reported that Caribbean insurer British American Insurance Co. Ltd. has told the Eleventh Circuit it is close to a deal with a former investment fund director over the alleged theft of $10.25 million, after the case was found by a lower court to be time- barred. According to the report, the insurer said on Jan. 26 it needed time to finalize settlement documents with Peter Krieger, a former principal of investment firm Corban Fund II LP and several related entities, and requested a stay or abatement of the appeal. As previously reported by the TCR, the Caribbean insurer and a subsidiary filed the lawsuit against the former directors over unsuccessful real estate transactions in Florida that allegedly led to the companies' Chapter 15 insolvency. The others named as defendants in the lawsuit are Green Island Holdings LLC, Charles Pratt, and Voyager Development LLC. The appeals case is British American Insurance com v. Peter Krieger, et al., Case No. 14-14965 (11th Cir.). About BAICO British American Insurance Company is a Nassau, Bahamas-based insurance and financial services company. BAIC is owned by Trinidad-based parent CL Financial. BAIC listed debt of $500 million to $1 billion and assets of more than $100 million in its Chapter 15 petition (Bankr. S.D. Fla. Case No. 09-3588). By order entered Aug. 4, 2009, the Eastern Caribbean Supreme Court in the High Court of Justice Saint Vincent and the Grenadines appointed Brian Glasgow as Judicial Manager for BAICO under Section 52 of the Insurance Act, No. 45 of 2003 of the Laws of Saint Vincent and the Grenadines. =========== B R A Z I L =========== BANCO ABC: S&P Affirms 'BB+' Rating; Outlook Stable --------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB+' global scale and 'brAA' national scale ratings on Banco ABC Brasil S.A. (ABC Brasil). The outlook on both scales is stable and the bank's stand-alone credit profile (SACP) remains 'bb+'. The ratings on ABC Brasil reflect the bank's "moderate" business position, "adequate" capital and earnings, "strong" risk position, "below average" funding and "adequate" liquidity. The bank's strong asset quality, conservative risk management, and stable revenues partially offset its "moderate" business position given its small size and concentrated business lines and its "below average" funding profile. "Although 2015 looks like a challenging year for midsize banks in Brazil, we believe ABC Brasil will maintain its good risk management standards allowing it to achieve good profitability and maintain strong asset quality," said Standard & Poor's credit analyst Vitor Garcia. "Under our bank criteria, we use our Banking Industry Country Risk Assessment (BICRA) economic and industry risk scores to determine a bank's anchor, the starting point in assigning an issuer credit rating. Our anchor for a commercial bank operating only in Brazil is 'bbb-', based on the banking sector's economic risk score of '6' and industry risk score of '5'. The economic risk reflects Brazil's low GDP per capita levels and only modest growth prospects that limit household credit capacity and the country's ability to withstand economic downturns. It also considers our view that economic imbalances have increased as a result of rapid credit expansion amid a slowly growing economy, which isn't likely to pick up for the next two years, further increasing the household debt burden. In addition, we expect Brazil's external vulnerability tol rise somewhat over the next several years, which also contributes to our "high risk" assessment for economic imbalances. However, the Brazilian corporate sector's moderate leverage and the absence of high-risk loans somewhat mitigate the higher risk factors in our economic risk assessment. Our industry risk score of '5' reflects our belief that the industry risks in Brazil's banking sector continued to increase. In our view, there are growing market distortions due to an increasing market share of loans from publicly owned banks during the past two years and an increasing spread differential between public and private banks, which have reduced the sector's profitability. Extensive coverage, effective supervision of the financial system, and an adequate and stable deposit base support our industry risk assessment," S&P said. "We continue to view ABC Brasil as a "strategically important" subsidiary for Arab Banking Corp. B.S.C. (BBB-/Stable/A-3). As of Sept. 30, 2014, the Brazilian bank accounted for 43% of the group's overall revenues, 27% of its assets, and 22% of its equity (according to our metrics). Although ABC Brasil is not one of the group's core businesses, the Brazilian subsidiary is a profitable and independent investment, and we don't believe ABC is likely to sell it. The parent participates on ABC Brasil's board of directors and supports its subsidiary through contingency lines. Following our group methodology criteria, we view ABC Brasil as a "strategically important" subsidiary, which reflects our expectation that it would receive parent support in most foreseeable stressful circumstances. Nevertheless, ABC Brasil's SACP is already one notch below the issuer credit rating on the parent and the group credit profile; therefore, the ratings on ABC Brasil don't reflect any notches of support from its parent," S&P added. PETROBRAS GLOBAL: Moody's Lowers Sub. Shelf Rating to (P)Ba1 ------------------------------------------------------------ Moody's Investors Service downgraded all ratings for Petrobras S.A. (including debts rated based on Petrobras' guarantee), including a downgrade of the company's senior unsecured debt to Baa3 from Baa2. Moody's also lowered the company's Baseline Credit Assessment (BCA) to ba2 from ba1. The rating actions reflect concerns about corruption investigations and liquidity pressures that might result from delays in delivering audited financial statements. The ratings remain on review for further downgrade. Below is a list of affected ratings: Downgrades: Issuer: Petrobras Global Finance B.V. Subordinate Shelf, Downgraded to (P)Ba1 from (P)Baa3; Placed Under Review for further Downgrade Senior Unsecured Shelf, Downgraded to (P)Baa3 from (P)Baa2; Placed Under Review for further Downgrade Senior Unsecured Regular Bond/Debenture, Downgraded to Baa3 from Baa2; Placed Under Review for further Downgrade Issuer: Petrobras International Finance Company Subordinated Shelf, Downgraded to (P)Ba1 from (P)Baa3; Placed Under Review for further Downgrade Senior Secured Shelf, Downgraded to (P)Baa2 from (P)Baa1; Placed Under Review for further Downgrade Senior Unsecured Shelf, Downgraded to (P)Baa3 from (P)Baa2; Placed Under Review for further Downgrade Senior Unsecured Regular Bond/Debenture, Downgraded to Baa3 from Baa2; Placed Under Review for further Downgrade Issuer: Petroleo Brasileiro S.A. - PETROBRAS Issuer Rating, Downgraded to Baa3 from Baa2; Placed Under Review for further Downgrade Preferred Shelf, Downgraded to (P)Ba2 from (P)Ba1; Placed Under Review for further Downgrade Preferred Shelf, Downgraded to (P)Ba3 from (P)Ba2; Placed Under Review for further Downgrade Subrodinate Shelf, Downgraded to (P)Ba1 from (P)Baa3; Placed Under Review for further Downgrade Senior Unsecured Shelf, Downgraded to (P)Baa3 from (P)Baa2; Placed Under Review for further Downgrade Senior Secured Shelf, Downgraded to (P)Baa3 from (P)Baa2; Placed Under Review for further Downgrade Ratings Rationale The Baa3 rating reflects the deepening scope of the investigation of improper payments, which Moody's believes heightens uncertainty about the timely delivery of audited financial statements and could lead to significant liquidity pressures. On January 27, Petrobras released its delayed unaudited financial statements for the third quarter 2014. The company acknowledged the need to make revisions to fixed asset values in its financial statements to reflect overpayments tied to past misconduct. However, Petrobras failed to provide any clarity about the magnitude of these adjustments. The lack of progress in disclosing approximate adjustment amounts is not an encouraging sign for the timely release of audited year-end financial statements. Petrobras' ratings remain on review for possible downgrade, reflecting continued concern about potential liquidity pressures that could arise as a consequence of not providing timely financial statements. The company's debt agreements include covenants for the provision of financial statements. Extended delays in providing financial statements carries the risk that creditors may take actions that could eventually lead to payment acceleration. Additional rating actions will consider any further developments in the ongoing corruption investigation and the passage of time without clear progress towards normal production of financial statements. Failure to make such progress over the next month may lead to a downgrade in the absence of other actions that would reduce uncertainty around the company's ability to meet all of its financial obligations on a timely basis. Moody's credit assessment of Petrobras takes into account the expected level and timeliness of government support, in case of need. Moody's current assumptions are that there is a high likelihood of support and moderate dependence with the government's rating. Petrobras' rating would be sensitive to any change in the government's rating. In addition, Petrobras' ratings could also be downgraded if financial leverage increases and is sustained with debt/EBITDA above 5x or if production growth falls short of targets. The principal methodology used in these ratings was Global Integrated Oil & Gas Industry published in April 2014. Other methodologies used include the Government-Related Issuers methodology published in October 2014. Petrobras, based in Rio de Janeiro, is an integrated energy company, with total assets of about USD 341 billion as of September 30, 2014. Petrobras dominates Brazil's oil and natural gas production, as well as downstream refining and marketing. The company also holds a significant stake in petrochemicals and a burgeoning position in sugar-based ethanol production and distribution. The Brazilian government directly and indirectly owns about 46% of Petrobras' outstanding capital stock and 60.4% of its voting shares. VIRGOLINO DE OLIVEIRA: S&P Cuts Note Rating to D on Missed Payment ------------------------------------------------------------------ Standard & Poor's Ratings Services lowered its issue-level rating on Virgolino de Oliveira Finance S.A.'s 2018 notes to 'D' from 'CC'. S&P also removed the rating from CreditWatch negative. Virgolino de Oliveira Finance is a wholly-owned financial vehicle of Virgolino de Oliveira S.A. - Acucar e Alcool (GVO). The downgrade reflects GVO's missed payment on these notes' interest, which Virgolino de Oliveira Finance issued. S&P's 'D' corporate credit rating on GVO already reflects its expectation of general debt obligation restructuring. ========================== C A Y M A N I S L A N D S ========================== ARTEPHIUS FUND: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Artephius Fund 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: Hung Lok Ming Gary Telephone: (852) 2809 3286 St. George's Building Room 402, 4th Floor 2 Ice House Street, Central Hong Kong GRACCHI DIVERSIFIED: Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Gracchi Diversified Volatility Fund 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: Delta FS Limited c/o Andrew Edgington Telephone: (345) 743 6630 Harbour Place, 5th Floor 103 South Church Street P.O. Box 11820 Grand Cayman KY1-1009 Cayman Islands GRACCHI DIVERSIFIED MASTER: Shareholders Receive Wind-Up Report --------------------------------------------------------------- The shareholders of Gracchi Diversified Volatility Master Fund 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: Delta FS Limited c/o Andrew Edgington Telephone: (345) 743 6630 Harbour Place, 5th Floor 103 South Church Street P.O. Box 11820 Grand Cayman KY1-1009 Cayman Islands HUNT OMAN: Shareholders Receive Wind-Up Report ---------------------------------------------- The shareholders of Hunt Oman Musandam Exploration Company 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 INTEGRITY INDEPENDENT: Shareholders Receive Wind-Up Report ---------------------------------------------------------- The shareholders of Integrity Independent Risk & Financial Solutions Holdings Limited received on Dec. 29, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Rainier Hok Chung Lam c/o Ian Lindo Telephone: +1 (345) 814 2059 Facsimile: +1 (345) 949 4900 Appleby Trust (Cayman) Limited Clifton House, 75 Fort Street Grand Cayman KY1-1108 Cayman Islands MARATHON ASIA: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Marathon Asia Fund, 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: Delta FS Limited c/o Andrew Edgington Telephone: (345) 743 6630 Harbour Place, 5th Floor 103 South Church Street P.O. Box 11820 Grand Cayman KY1-1009 Cayman Islands MARATHON ASIA MASTER: Shareholders Receive Wind-Up Report --------------------------------------------------------- The shareholders of Marathon Asia Master Fund, 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: Delta FS Limited c/o Andrew Edgington Telephone: (345) 743 6630 Harbour Place, 5th Floor 103 South Church Street P.O. Box 11820 Grand Cayman KY1-1009 Cayman Islands MARATHON SPECIAL: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Marathon Special Opportunities Offshore Fund 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: Delta FS Limited c/o Andrew Edgington Telephone: (345) 743 6630 Harbour Place, 5th Floor 103 South Church Street P.O. Box 11820 Grand Cayman KY1-1009 Cayman Islands MARATHON SPECIAL MASTER: Shareholders Receive Wind-Up Report ------------------------------------------------------------ The shareholders of Marathon Special Opportunities Offshore Master Fund 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: Delta FS Limited c/o Andrew Edgington Telephone: (345) 743 6630 Harbour Place, 5th Floor 103 South Church Street P.O. Box 11820 Grand Cayman KY1-1009 Cayman Islands MARATHON DISTRESSED: Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Marathon Distressed Subprime Fund (Cayman), 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: Delta FS Limited c/o Andrew Edgington Telephone: (345) 743 6630 Harbour Place, 5th Floor 103 South Church Street P.O. Box 11820 Grand Cayman KY1-1009 Cayman Islands MARATHON EM: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of Marathon EM Opportunity Fund, 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: Delta FS Limited c/o Andrew Edgington Telephone: (345) 743 6630 Harbour Place, 5th Floor 103 South Church Street P.O. Box 11820 Grand Cayman KY1-1009 Cayman Islands MARATHON EM MASTER: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Marathon EM Opportunity Master Fund, 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: Delta FS Limited c/o Andrew Edgington Telephone: (345) 743 6630 Harbour Place, 5th Floor 103 South Church Street P.O. Box 11820 Grand Cayman KY1-1009 Cayman Islands TEMPORIS CLEAN: Shareholder Receives Wind-Up Report --------------------------------------------------- The shareholder of Temporis Clean Technology Fund received on Dec. 23, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Cinnamon Capital Management (Cayman) Limited c/o Desiree Jacob Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 TEMPORIS CLEAN MASTER: Shareholder Receives Wind-Up Report ---------------------------------------------------------- The shareholder of Temporis Clean Technology Master Fund received on Dec. 23, 2014, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Cinnamon Capital Management (Cayman) Limited c/o Desiree Jacob Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 TIEDEMANN/PIKE: Shareholder Receives Wind-Up Report --------------------------------------------------- The shareholder of Tiedemann/Pike Place Offshore QP, 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: Barbara Warga Naratil c/o Justin Savage Telephone: (345) 815 1816 Facsimile: (345) 949-9877 UNIVERSA ASYMMETRY: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Universa Asymmetry Offshore Fund Ltd. received on Jan. 1, 2015, 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 =============== C O L O M B I A =============== COLOMBIA: Holds Policy Rate at 4.5% and Cuts Growth Forecast ------------------------------------------------------------ Oscar Medina and Christine Jenkins at Bloomberg News report that Colombia's central bank kept borrowing costs unchanged for a fifth consecutive month and cut its 2015 growth forecast following a slump in oil prices. The seven-member board voted unanimously to leave the overnight lending rate at 4.5 percent, Governor Jose Dario Uribe told reporters in Bogota after their meeting, according to Bloomberg News. The decision was forecast by all 37 analysts surveyed by Bloomberg. Bloomberg News relates that policy makers cut their forecast for economic growth this year to 3.6 percent from 4.3 percent, citing the drop in oil prices. The reduction raises the prospect of interest rate cuts to revive growth, said Camilo Perez, chief economist at Banco de Bogota, Bloomberg News relates. "This is very important because it shows that the bank's optimism has fallen," Mr. Perez said in reply to e-mailed questions, Bloomberg News notes. "It's now more likely that there'll be a rate cut in 2015, which may be as soon as April," Mr. Perez added. Twenty analysts surveyed by Bloomberg this month cut their median forecast for 2015 growth to 3.9 percent from 4.2 percent in a December survey. Crude, which accounts for about 50 percent of Colombian exports, has more than halved since June. The slump in crude is already affecting investment in the oil industry, Uribe said, Bloomberg News relates. The economy grew 4.8 percent last year, according to the central bank's forecast, Bloomberg News relates. The country has been shielded from a sharper slowdown by strong consumer spending, Bloomberg News notes. Consumer Strength Retail sales rose 8.4 percent in November from a year earlier, while industrial production slid 0.9 percent over the same period. Gross lending in the 12 months through November increased 14.5 percent, Bloomberg News says. Annual inflation accelerated to 3.66 percent last year, the fastest pace in three years and above the 3 percent mid-point of the central bank's target range, Bloomberg News notes. Mr. Uribe said the "particularly strong" drop in the peso this year will temporarily increase the prices of some imported goods, without contaminating general inflation, Bloomberg News discloses. "Internal demand continues to show dynamism in a context of near full-capacity use," Bloomberg News quoted Mr. Uribe as saying. "At the same time inflation and inflation expectations remain a bit above 3 percent. This is happening in a context of worsening terms of trade and uncertainty over its impact on aggregate demand," said Mr. Uribe. =================== C O S T A R I C A =================== COSTA RICA: Colon to Float Against Dollar as Bank Releases Brake ---------------------------------------------------------------- Michael McDonald at Bloomberg News reports that Costa Rica will allow the value of its currency, the colon, to float against the U.S. dollar after decades of gradually reduced brakes on its volatility, the country's central bank announced. Costa Rica implemented a "currency band" in October 2006 after 22 years of small devaluations, according to Bloomberg News. The band limited the colon's value to a range of 500 to 866 per dollar. Bloomberg News notes that Central Bank President Olivier Castro said that under the new system authorities will only intervene when the colon experiences "abnormal fluctuations." "This strategy will allow a greater flexibility in the exchange rate," Bloomberg News quoted Mr. Castro as saying. "The macroeconomic conditions are adequate for this migration," Mr. Castro added. Bloomberg News notes that Costa Rica's colon has fallen 4.6 percent against the dollar in the past 12 months to 536 on Jan. 30, as Mr. Castro said the currency has been in "de facto float" for a year. The bank sold about $2.8 million this year to stabilize the colon, Bloomberg News relates. Costa Rica's economy will expand 3.4 percent this year and 4.1 percent in 2016, Mr. Castro said, Bloomberg News relates. The bank will maintain its inflation target between 3 percent and 5 percent for the next two years, Mr. Castro added. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Pays Most of US$4.1 Billion Oil Debt -------------------------------------------------------- Dominican Today reports that Dominican Republic Finance Minister Simon Lizardo said the government paid off nearly all of a US$4.1 billion oil debt to Venezuela accumulated since 2005, with funds raised through a bond sale. The government used US$1.93 billion to pay off 98 percent of its debt to Venezuela at a discount of more than 50 percent, the official told reporters in a National Palace press conference, according to Dominican Today. The report notes that the deal, the official said, concluded on Jan. 27, and the Administration headed by Danilo Medina will reduce the country's debt owed to Venezuela. The Dominican Republic had accumulated the debt under preferential financing terms afforded to it as a member of Venezuela's Petrocaribe energy program, enacted by the late former president Hugo Chavez, the report relates. ============= J A M A I C A ============= JAMAICA: BSJ Removes Certificate Requirement for Some Food Exports ------------------------------------------------------------------ RJR News reports that the Bureau of Standards Jamaica has announced the removal of the requirement for export certificates for prescribed foods. The change, which takes immediate effect, mainly concerns agro- processed foods, according to RJR News. The report notes that the removal follows discussions with the Jamaica Customs Agency. Companies that require certification from the Bureau in order to meet the requirements of importing jurisdictions will continue to be facilitated, but Customs will no longer need the certificate for supplies to leave the country, the report relates. The change will allow exports to be certified based on market access rules in the destination country, 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. UC RUSAL: No Immediate Plan to Restart Idle Aluminum Smelters ------------------------------------------------------------- RJR News reports that UC Rusal, the owner of three alumina refineries in Jamaica (two of which are currently closed), says it has no plan this year to restart smelting capacity, idled in the past two years due to oversupply. The company says it does expect stable output and favorable prices for aluminum, according to RJR News. The report notes that UC Rusal, in a filing to Hong Kong's stock exchange on Jan. 30, said its aluminum output fell 7% year to 3.6 million tons. Fourth-quarter production grew one per cent from the third quarter to 915,000 tons, the report relays. Fourth-quarter average price for aluminum grew 5% to 2-thousand US$425 per ton from the third quarter, the report discloses. * * * As reported in the Troubled Company Reporter-Latin America on March 31, 2014, RJR News said that UC Rusal reported a massive increase in net losses in the year to December 31. This was due mainly to a large impairment cost and one-off restructuring charges combined with lower production and a fall in aluminum prices. The report said the company reported a net loss of US$3.2 billion. It suffered a US$528 million loss in 2012. =========== M E X I C O =========== MEXICO: Government to Cut 2015 Budget by $8.57 Billion ------------------------------------------------------ EFE News reports that Mexico's government will trim its planned spending by $8.57 billion in 2015, equivalent to 0.7 percent of the nation's gross domestic product, Finance Secretary Luis Videgaray said. The measure includes reducing the budgets of state oil company Petroleos Mexicanos and state-owned electric utility CFE by $4.28 billion and $689.7 million, respectively, Mr. Videgaray said at a press conference, according to EFE News. =============== P A R A G U A Y =============== PARAGUAY: Fitch Raises IDR to 'BB'; Outlook Stable -------------------------------------------------- Fitch Ratings has taken these rating actions on Paraguay: -- Long-term foreign and local currency Issuer Default Ratings (IDRs) upgraded to 'BB' from 'BB-'; -- Senior unsecured foreign and local currency bonds upgraded to 'BB' from 'BB-'; -- Country Ceiling upgraded to 'BB+' from 'BB'; -- Short-term foreign currency IDR affirmed at 'B'. The Rating Outlook is Stable. KEY RATING DRIVERS The resilience of Paraguay's external accounts and economic growth has increased, underpinned by export diversification and productivity enhancements in the primary sector, which accounts for 25% of GDP. The country's export receipts are generated by three industries that are relatively uncorrelated and less exposed to the current downturn in global commodity prices: soy, beef and electricity. Fitch expects the sovereign to remain a net external creditor and international reserves to cover over five months of current external payments in 2015-2016, providing a cushion against adverse terms-of-trade shocks. Paraguay's five-year average growth of 7% exceeded the 'BB' median of 4% in 2014. Higher growth has facilitated the convergence of the country's per capita income with the 'BB' median. Fitch forecasts that economic activity will keep pace at 4.5% in 2015- 2016, driven by the dynamism of construction, infrastructure, private consumption and a rising maquila industry. Despite the recent fall in soybean export prices, the agriculture sector maintains high profitability margins, low leverage and adequate capitalization. These factors mitigate the potential for negative spillovers to the rest of the economy and the financial system. Monetary authorities have been able to maintain moderate inflation rates despite the challenges imposed by low financial intermediation, high dollarisation and underdeveloped local capital markets. The central bank has met its inflation target since the adoption of the regime in 2011, and expectations point to consumer price increases in line with the new official reference mid-point of 4.5% in 2015-2016. International reserves accumulation and greater currency flexibility have enhanced the capacity of the exchange rate to serve as a shock absorber. Fitch projects that Paraguay's debt burden will approach 23% of GDP by 2016 but remain well below the 'BB' median of 40% even after factoring in a moderate deterioration in fiscal accounts. Fitch expects the central government deficit to widen to 2.4% of GDP in 2014-2015, after recording average surpluses of 1% in 2004- 2011. In addition, the revenue base is expected to increase gradually in the coming years with the gradual introduction of personal income and agriculture taxes. The sovereign's demonstrated capacity to access international bond markets and multilateral funding at favorable conditions support fiscal financing flexibility. However, Fitch notes that implementation of the new fiscal responsibility law has already proved challenging, weakening its role as an institutional anchor for fiscal policy. The first budget (2015) approved by congress after the law calls for a central government deficit of 3.5% of GDP, above the legal limit of 1.5%. Real wage adjustments awarded to teachers and doctors and increased transfers to sub-national governments in an electoral year make it difficult to abide by the primary current spending growth ceiling of 4% above inflation. The authorities seem willing to accept deviations from the legal deficit threshold if they are derived from public investment projects with secure external financing. The banking sector has strengthened since the 2003 crisis and presently maintains adequate levels of capitalization, liquidity and credit quality. Credit is largely concentrated in the export- oriented agriculture and livestock industries, two sectors with solid collateral and without currency mismatches. Nonetheless, rapid lending growth, rising household indebtedness and high dollarization of credit could become sources of vulnerability for financial institutions. Paraguay's ratings balance a long track record of fiscal prudence through different economic and political cycles and strong fiscal solvency indicators against high output volatility due to weather- related shocks, a low tax revenue base and comparatively weak structural factors in terms of investment rates, GDP per capita, institutional quality and social development indicators. RATING SENSITIVITIES The Stable Outlook reflects Fitch's assessment that upside and downside risks to the rating are currently balanced. The main factors that individually, or collectively, could trigger a rating action are: Positive: -- Higher growth trajectory in the context of macroeconomic and financial stability. Improvements in the business environment and the execution of public infrastructure projects that lead to higher investment rates will be positive; -- Strengthening of the economy's external liquidity position in line with the peer median; -- Structural improvements in public finances in terms of revenue base, expenditure rigidity and a continued moderate debt burden. Negative: -- Commodity production shocks or severe export price falls that materially impair external and fiscal solvency ratios; -- Sustained fiscal deterioration in the context of financing constraints. KEY ASSUMPTIONS The ratings and Outlooks are sensitive to a number of assumptions: -- Fitch assumes weak economic growth in Brazil and a recession in Argentina in 2015. A sharper than expected deterioration in economic conditions could affect Paraguay's economic and export performance given the important trade links with these countries. -- Fitch's economic growth and external forecasts assume continued softening of international soybean prices in 2015- 2016, after the 20% correction observed in 2013-2014. The shift towards agriculture exports of higher value-added and higher beef production could partially offset the decline in soy prices. -- Fitch assumes that Paraguay will maintain access to external sources of financing. ====================== P U E R T O R I C O ====================== ALCO CORP: Complies with Reports; Bid to Dismiss Deemed Moot ------------------------------------------------------------ The Bankruptcy Court deemed moot the U.S. Trustee's motion to dismiss the Chapter 11 case of Alco Corporation, and vacated the hearing set for Jan. 21. On Jan. 2, Guy G. Gebhardt, the acting U.S. trustee for Region 21, filed a motion to dismiss or convert the Debtor's case. As grounds for the dismissal, the U.S. Trustee argued that (1) debtor corporation did not have legal representation and thus, could not represent itself in court; (2) debtor corporation had not filed operating reports for the months of May through November of 2014; and, (3) debtor corporation had not paid statutory quarterly fees to the U.S. Trustee for the First, Second and Third Quarters of 2014. At the hearing held on another matter on Jan. 13, the Court directed the U.S. Trustee to inform the Court by Jan. 20, if the Debtor had filed the outstanding operating reports, as the scheduled hearing would not be held if the reports were filed. As of Jan. 13, the Debtor had already retained legal representation. On Jan. 13, 2015, the Debtor delivered to the United States Trustee a check in payment of the quarterly fees owed. The check has been forwarded to the Payment Center. About Alco Corp. Alco Corporation in Dorado, Puerto Rico, filed for Chapter 11 bankruptcy (Bankr. D.P.R. Case No. 12-00139) on Jan. 12, 2012. Carmen D. Conde Torres, Esq., and C. Conde & Associates represent the Debtor in its restructuring effort. Alco tapped Jimenez Vasquez & Associates, PSC, as accountants. The Debtor scheduled $11.2 million in assets and $7.76 million in debts. The petition was signed by Alfonso Rodriguez, president. Bankruptcy Judge Mildred Caban Flores in Puerto Rico issued an opinion and order on March 11, 2013, confirming the Amended Chapter 11 Plan of Reorganization filed by Alco Corporation. The Plan considers the full payment of all administrative, secured creditors and priority claims and a 50% dividend to the general unsecured creditors on monthly installments within 5 years from the effective date. =============================== T R I N I D A D & T O B A G O =============================== TRINIDAD & TOBAGO: Inflation Creeps Up to 8.5% ---------------------------------------------- Sasha Harrinanan at Trinidad and Tobago Newsday reports that headline inflation "is creeping up" and reached 8.5 percent last December from the 5.5 percent at the start of 2014, Central Bank Governor Jwala Rambarran said. Higher prices for foods, especially fruits and vegetables, is what led to the inflation spike, Governor Rambarran told reporters at a press conference on monetary policy at Central Bank, Port-of- Spain, according to Trinidad and Tobago Newsday. "(The) pickup in headline inflation is mainly due to food price inflation, which remained in double-digit territory; almost 17 percent, for the sixth successive month in December 2014. The acceleration in food prices largely reflects rising prices for locally produced vegetables and fruits," the report quoted Governor Rambarran as saying. The report relays that Governor Rambarran also announced that the bank's Monetary Policy Committee (MPC) agreed to a third consecutive increase in the repo rate by 25 basis points to 3.5 percent. The repo is a discount rate at which the Central Bank buys government securities from commercial banks, the report says. The report discloses that the first reason for adjusting the repo was the recent interest rate guidance from the US Federal Reserve about the future path of its monetary policy. "The second factor related to signs the TT economy seems to be approaching full capacity, and finally, the MPC considered the still positive growth outlook for the non-energy sector despite the steep decline in oil prices," Governor Rambarran stated, the report relays. The report notes that Governor Rambarran noted the economy approaching full capacity was reflected in such indicators as higher headline inflation, low unemployment being "at a little over three percent of the labour force", and the demand for foreign exchange due to increased imports of consumer goods. On the matter of core inflation, Rambarran said the rate could be pushed up if Government maintains its "expansionary fiscal stance." The report notes that Governor Rambarran explained that although Government has "substantially revised downwards its energy price assumptions for the 2014 - 2015 Budget" because of falling crude oil prices, it intends to return to the original fiscal deficit target of "roughly 2.5 percent of GDP (gross domestic product)." "This suggests the Government is likely to maintain its expansionary fiscal stance (which) would further add to elevated liquidity levels; currently around $6 billion, and push up core inflation," the report quoted Governor Rambarran as saying. Describing the debate on how falling crude oil prices would affect the local economy as "ill- informed," Governor Rambarran reminded that TT "has been a natural gas economy for the past 16 years" and that those prices having remained stable, the report notes. The Governor also said he does not expect a drop in natural gas prices until May of this year, the report adds. TRINIDAD & TOBAGO: Promises to Pump More US$ Into System -------------------------------------------------------- Trinidad Express reports that Trinidad and Tobago Central Bank has promised to make larger and more frequent foreign exchange interventions to help the business community access US currency. "We've said that we plan to basically clear the unsatisfied demands and clear some of the precautionary demand that has been brought forward and therefore you could look forward to further easing over the coming months," the report quoted Central Bank Governor Jwala Rambarran as saying. "Based on data we've seen coming in over the last month, substantial businesses have been receiving foreign exchange. You may not have received all that you've wanted but the process has started and the tensions are beginning to ease," Governor Rambarran added. Noting Jan. 26's largest injection of US$400 million by the Central Bank, Governor Rambarran urged the business community to give the new distribution system set up by the Central Bank some time to work, the report relays. Just two weeks ago, businessmen present at an economic forum hosted by the American Chamber of Commerce complained that despite recent promises they are still experiencing problems accessing the US dollars, the report notes. The report discloses that some claimed that they were told the Central Bank had created an allocation list and if they were not on the list, they could not receive the currency. But in response, Governor Rambarran said: "The relationship that exists between a commercial bank and its clients, the Central Bank does not get involved in that. It is up to the commercial banks to decide how much, when and why it will provide foreign exchange to its client. That is not the business of the Central Bank. We remain at the system level in terms of our operations," the report adds. ================= X X X X X X X X X ================= * BOND PRICING: For the Week From Jan. 19 to Jan. 23, 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 * * *