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

            Wednesday, February 4, 2015, Vol. 16, No. 024


                            Headlines



B A R B A D O S

BARBADOS: No Interference With Fixed Exchange Rate, Minister Says


B R A Z I L

AES ELETROPAULO: Faces State Audit Over Sao Paulo Power Cuts
PARANAPANEMA S.A.: Moody's Affirms Ba3 CFR; Outlook Negative


C A Y M A N  I S L A N D S

ALPHA SCOUT: Members Receive Wind-Up Report
BLUE SEA: Members Receive Wind-Up Report
CENTILLION INVESTMENT: Members Receive Wind-Up Report
CINTRA HANSON: Shareholders Receive Wind-Up Report
DELRAY LIMITED: Members Receive Wind-Up Report

ESE FUND: Shareholders Receive Wind-Up Report
IPGIS CENTRAL: Shareholders Receive Wind-Up Report
JAMES ALPHA: Shareholders Receive Wind-Up Report
LODESTONE GLOBAL: Members Receive Wind-Up Report
METIER ACTIVE: Shareholders Receive Wind-Up Report

OSWALD MAGNIAC: Members Receive Wind-Up Report
PROFITABLE INVESTMENTS: Members Receive Wind-Up Report
SHREE HANUMANTE: Members Receive Wind-Up Report
STONE MILLINER: Shareholders Receive Wind-Up Report
TSF FUND: Shareholders Receive Wind-Up Report


D O M I N I C A N   R E P U B L I C

DOMINICAN REP: After Falling Since Nov., All Fuel Prices Unchanged


J A M A I C A

JAMAICA: Devaluation Questions From Holness


M E X I C O

NII HOLDINGS: Proposes March 20 Auction for Mexican Affiliate


P A N A M A

AES PANAMA: Fitch Affirms 'BB+' IDRs; Outlook Negative


P U E R T O    R I C O

PUERTO RICO ELECTRIC: S&P Keeps CCC Rev. Bond Rating on Watch Neg.


T R I N I D A D  &  T O B A G O

TRINIDAD AND TOBAGO: Foreign Exchange Woes Continue


V E N E Z U E L A

VENEZUELA: In a Bind As Nicolas Maduro Faces Default Dilemma


X X X X X X X X X

LATIN AMERICAN: Default Wave Just Getting Started


                            - - - - -


===============
B A R B A D O S
===============


BARBADOS: No Interference With Fixed Exchange Rate, Minister Says
-----------------------------------------------------------------
Caribbean360.com reports that Barbados Prime Minister Freundel
Stuart said his administration has no intention of interfering
with the fixed exchange rate of the Barbados currency to the
United States currency.

Minister Stuart told members of the private sector that the
conditions in Barbados did not justify any tampering with the
exchange rate, according to Caribbean360.com.

"The government over which I preside will, through its policy
choices, continue to make the preservation of that exchange rate a
matter of continuing priority.  I give this assurance, well aware
that this will serve neither as a deterrent nor a discouragement
to that small coterie of alarmists who continue to believe in
economic witchcraft and are therefore preoccupied with and
intrigued by this brand of necromancy," the report quoted Minister
Stuart as saying.

Minister Stuart told members of the Barbados Chamber of Commerce
and Industry that the island took the decision in 1975 to have a
fixed exchange rate in relation to the US dollar after delinking
from the British pound sterling, the report notes.

Minister Stuart said for the past 40 years, government had
defended the exchange rate.

"We have done so because, in good times and in bad, this exchange
rate has served us well.  Those who blithely and glibly argue that
our currency is over-valued have not been able to show us how
devaluation has improved spectacularly the situation of those of
our neighbors who have pursued that course," the report quoted
Minister Stuart as saying.

"I have certainly heard no argument credible enough to persuade me
that it is a course of action to which we should have resorted,"
Minister Stuart said, arguing that devaluation was supposed to be
a policy response to a "chronic disequilibrium in a country's
balance of payments position," he added, notes the report.

Prime Minister Stuart pointed out that its rationale is to correct
that chronic imbalance by making imports more expensive and
exports cheaper, the report relays.

"Resort to it, however, is not without risk or peril as the
venerable economist, Sir Arthur Lewis so discerningly observed,"
Minister Stuart said, telling the audience government is of the
view that the State should create an operating environment in
which the private sector could flourish with uninhibited vigor,
the report discloses.

But, Minister Stuart cautioned that such an enabling environment
did not mean there should be no Town and Country Planning
Department; no border Customs Officers to ask questions or insist
on receiving truthful answers to those questions; or that the
Immigration Department should approve every application for work
permits or any other status without question, the report says.

"The physical development of Barbados must continue to be ordered
and the Town Planning Department has therefore to be allowed to do
its work efficiently, always operating within the provisions of
the law which may govern its operations from time to time," the
report quoted Minister Stuart as saying.

"The Customs and Immigration Departments are not merely revenue
streams but are intimately linked to our national security
apparatus and, for countries like Barbados, national security is
in addition to everything else, a developmental issue. If you were
to remove our sense of national security, all of our economic
gains would disappear in short order," Minister Stuart suggested,
says Caribbean360.com.

However, Minister Stuart stressed that there was no justification
for unnecessary obstacles being placed in the way of the private
sector by the agencies named, the report relays.  Minister Stuart
insisted that facilitation and the improvement of competitiveness
were non-negotiable commitments of the Government of Barbados, the
report adds.


===========
B R A Z I L
===========


AES ELETROPAULO: Faces State Audit Over Sao Paulo Power Cuts
------------------------------------------------------------
Reuters reports that Brazil's state of Sao Paulo will investigate
AES Eletropaulo Metropolitana SA for delays in restoring power to
several parts of the nation's wealthiest state in the wake of
rains and rolling blackouts, a state official said.

Arsesp, Sao Paulo state's agency in charge of public services,
will begin an audit of the company that should be done by Feb 17,
Joao Carlos Meirelles, the state energy secretary, told reporters,
notes Reuters.

According to Meirelles, Eletropaulo has failed to provide full
information about its efforts to restore the supply of electricity
in several urban and rural regions, the report notes.

                      About AES Corporation

The AES Corporation (NYSE:AES) -- http://www.aes.com/-- is one of
the world's largest global power companies, with 2007 revenues of
US$13.6 billion.  With operations in 29 countries on five
continents, AES's generation and distribution facilities have the
capacity to serve 100 million people worldwide.


PARANAPANEMA S.A.: Moody's Affirms Ba3 CFR; Outlook Negative
------------------------------------------------------------
Moody's Investors Service changed the outlook for Paranapanema
S.A. to negative from stable, and affirmed the Ba3 Corporate
Family Rating.

The change in outlook to negative reflects the deterioration in
the industry's fundamentals for copper products in Brazil , as key
consuming industries -- energy, construction, refrigeration,
industrial machinery, automotive -- will continue to be challenged
in the next 12-18 months by the tougher operating environment
stemming from Brazil's economic slowdown eventually leading to
cash flow pressures for Paranapanema.

Ratings affirmed:

Paranapanema S.A.

Corporate Family Rating: Ba3

Outlook actions:

The outlook for all ratings: changed to negative from stable

Ratings Rationale

Paranapanema's Ba3 ratings reflect the company's leading position
in the Brazilian copper market, as well as its large scale and
partially-integrated operations that include access to high-grade
copper, its efficient logistics, and its long-term relationship
with copper suppliers and clients. The ratings also reflect
Paranapanema's exposure to the cyclicality of global copper
markets and foreign exchange, which has historically resulted into
margins and cash flows volatility, although Moody's recognize that
the company has revisited its hedging policy in order to mitigate
future price and FX volatility. The ratings incorporate Moody's
expectations that challenging fundamentals in the copper industry
may pressure Paranapanema's credit metrics.

Also constraining the ratings are the negative perspective for
Brazil's economic growth and industrial activity, which should
impact Paranapanema's domestic sales while reducing the ability of
the company to pass through costs as a consequence of the BRL
devaluation and of rising administrative prices, such as energy .
Imports remain a threat, but the devaluation of the local currency
(BRL) should continue to help hinder imported copper products.
Exposure to copper prices and foreign exchange volatility also
constrain the ratings. Besides, the high concentration of debt in
the short term (55% of total reported debt at the end of 3Q14)
poses additional risk to Paranapanema's credit profile, although
Moody's acknowledge the export financing nature of the majority of
these lines.

Despite the deterioration in the domestic market fundamentals in
the 2H2014, Paranapanema's operational performance has improved in
the past quarters, and better working capital management resulted
in a stronger liquidity position, with cash balance near BRL1.0
billion at the end of September 2014.

The ratings could be upgraded if Paranapanema is able to improve
operating performance such that adjusted EBITA to interest expense
is sustained above 3.5x (1.8x in the last twelve months ended
September 2014) and EBITA margin above 8% on a sustained basis
(4.5% in the last twelve months ended September 2014 ). An
improved liquidity profile and a lower concentration of debt in
the short term could support positive rating actions. All ratios
incorporate Moody's standard adjustments.

On the other hand, the ratings could be downgraded if
Paranapanema's liquidity profile deteriorates or if its capital
structure weakens, with adjusted Debt to Ebitda above 4.75x (3.9 x
in the last twelve months ended September 2014) for a continued
period. Performance falling below Moody's expectations, indicated
by free cash flow to debt below 5% (24.8% in the last twelve
months ended September 2014), could also lead to negative rating
actions.

The principal methodology used in this rating was Global
Manufacturing Companies published in July 2014.

Paranapanema S.A. (Paranapanema) is the largest refined copper
producer in Brazil, with an annual smelting production capacity of
280,000 tons. The company is also a leading producer of semi-
finished copper products, including wires, tubes, rolling, rods
and bars. In the last twelve months ended September 2014,
Paranapanema reported consolidated revenues of BRL 5.1 billion (
USD 2.2 billion converted by the average foreign exchange rate for
the period). The company has four industrial facilities in Brazil
-- one in the state of Bahia, one in Esp¡rito Santo and two in the
state of Sao Paulo.


==========================
C A Y M A N  I S L A N D S
==========================


ALPHA SCOUT: Members Receive Wind-Up Report
-------------------------------------------
The members of Alpha Scout Canadian Opportunities Fund Ltd.
received on Jan. 7, 2015, the liquidator's report on the company's
wind-up proceedings and property disposal.

The company's liquidator is:

          William Messer
          Harbour Place, 4th Floor
          103 South Church Street
          P.O. Box 10240 Grand Cayman KY1-1002
          Cayman Islands


BLUE SEA: Members Receive Wind-Up Report
----------------------------------------
The members of Blue Sea Holdings 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


CENTILLION INVESTMENT: Members Receive Wind-Up Report
-----------------------------------------------------
The members of Centillion Investment Funds SPC received on
Dec. 23, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Richard Fear
          c/o Daniel Woolston
          Telephone: (345) 814 7782
          Facsimile: (345) 945 3902
          P.O. Box 2681 Grand Cayman KY1-1111
          Cayman Islands


CINTRA HANSON: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Cintra Hanson Investment Fund received on
Dec. 31, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Summit Management Limited
          c/o David Egglishaw
          Telephone: (345) 945 7676
          Suite # 4-210, Governors Square
          P.O. Box 32311 Grand Cayman KY1-1209
          Cayman Islands


DELRAY LIMITED: Members Receive Wind-Up Report
----------------------------------------------
The members of Delray 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


ESE FUND: Shareholders Receive Wind-Up Report
---------------------------------------------
The shareholders of ESE Fund SPC 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
          P.O. Box 1350 Grand Cayman KY1-1108
          Cayman Islands


IPGIS CENTRAL: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of IPGIS Central London Income (Cayman) 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:

          Garry John Hope
          Harcourt House
          Suite 601-6, 6th Floor
          39 Gloucester Road
          Wanchai, Hong Kong
          Telephone: +852 3965 9310
          Facsimile: +852 3965 9399


JAMES ALPHA: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of James Alpha CIE 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:

          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


LODESTONE GLOBAL: Members Receive Wind-Up Report
------------------------------------------------
The members of Lodestone Global Natural Resources General Partner
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:

          Jess Shakespeare
          c/o Kinetic Partners (Cayman) Limited
          The Harbour Centre
          42 North Church Street
          P.O. Box 10387 Grand Cayman KY1-1004
          Cayman Islands
          Telephone: (345) 623 9903
          Facsimile: (345) 943 9900


METIER ACTIVE: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of Metier Active Fund, Ltd. received on Dec. 31,
2014, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          Summit Management Limited
          c/o David Egglishaw
          Telephone: (345) 945 7676
          Governors Square, Suite # 4-210
          P.O. Box 32311 Grand Cayman KY1-1209
          Cayman Islands


OSWALD MAGNIAC: Members Receive Wind-Up Report
----------------------------------------------
The members of Oswald Magniac Limited received on Dec. 22, 2014,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Eagle Holdings Ltd.
          c/o Barclays Private Bank & Trust (Cayman) Limited
          FirstCaribbean House, 4th Floor
          P.O. Box 487 Grand Cayman KY1-1106
          Cayman Islands


PROFITABLE INVESTMENTS: Members Receive Wind-Up Report
------------------------------------------------------
The members of Profitable 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


SHREE HANUMANTE: Members Receive Wind-Up Report
-----------------------------------------------
The members of Shree Hanumante Limited received on Dec. 22, 2014,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Eagle Holdings Ltd.
          c/o Barclays Private Bank & Trust (Cayman) Limited
          FirstCaribbean House, 4th Floor
          P.O. Box 487 Grand Cayman KY1-1106
          Cayman Islands


STONE MILLINER: Shareholders Receive Wind-Up Report
---------------------------------------------------
The shareholders of Stone Milliner Cayman Inc. received on
Dec. 29, 2014, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Mourant Ozannes
          c/o Stone Milliner Asset Management LLP,
          c/o Jo-Anne Maher
          Telephone: (345) 814 9255
          Facsimile: (345) 949 4647
          94 Solaris Avenue, Camana Bay
          P.O. Box 1348 Grand Cayman KY1-1108
          Cayman Islands


TSF FUND: Shareholders Receive Wind-Up Report
---------------------------------------------
The shareholders of TSF 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:

          Appleby (Cayman) Ltd.
          Titan Advisors, LLC
          2 International Drive, Suite 120, Rye Brook
          New York 10573


===================================
D O M I N I C A N   R E P U B L I C
===================================


DOMINICAN REP: After Falling Since Nov., All Fuel Prices Unchanged
------------------------------------------------------------------
Dominican Today reports that after nine straight weeks of falling
prices the Industry and Commerce Ministry on Jan. 30, left all
fuels unchanged.

For the week from January 31 to Feb. 6 premium gasoline will cost
RD$192.80; regular gasoline will sell for RD$170.10; premium
diesel will cost RD$157.80 and regular diesel RD$149.70, while
optimum diesel will cost RD$166.60 per gallon, according to
Dominican Today.

Avtur will still cost RD$99.70; kerosene will cost RD$132.10; fuel
oil will cost RD$84.60 per gallon; propane gas will sell for
RD$82.90 per gallon, while natural gas also remains unchanged at
RD$31.44 per cubic meter, the report notes.

The Central Bank's average posted exchange rate of RD$44.71 per
dollar was used to calculate fuel prices, the report relates.


=============
J A M A I C A
=============


JAMAICA: Devaluation Questions From Holness
-------------------------------------------
RJR News reports that opposition Leader Andrew Holness is raising
concern about the continued slide in the value of the Jamaican
dollar.

Mr. Holness said there was no indication when the depreciation
will end, according to RJR News.

Mr. Holness added: "What is this saying to us? Does it mean that
in the next 30 years, we're going to have a 230-dollar-to-one? Is
that what our economy will do? Is that the future of your
children? Is that your future? We must find a new way for a better
life!"

At the end of trading on Jan. 30, it was costing an average
J$115.81 to purchase one American dollar, the report notes.


===========
M E X I C O
===========


NII HOLDINGS: Proposes March 20 Auction for Mexican Affiliate
-------------------------------------------------------------
NII Holdings, Inc., et al., ask the U.S. Bankruptcy Court for the
Southern District of New York to approve procedures governing the
sale of the entirety of their interest in their non-debtor
operations in Mexico to an affiliate of AT&T, subject to higher
and better bids.

According to the Debtors, AT&T affiliate New Cingular Wireless
Services, Inc., offered to purchase NII Mexico for approximately
$1.875 billion and its bid will serve as the stalking horse bid in
the auction and sale process.  The Purchaser's offer is supported
by major creditor constituencies; specifically, a group of
entities managed by Aurelius Capital Management, LP; a group of
entities managed by Capital Research and Management Company; and
the Official Committee of Unsecured Creditors, each of which is a
party to the existing Plan Support Agreement.

The Debtors propose an auction to be held on March 20, 2015, and a
hearing to consider approval of the sale to be held on March 23,
2015.  A Potential Bidder that desires to make a bid must deliver
written and electronic copies of its bid so as to be received no
later than March 17.

The Sale Transaction may be terminated if (i) the Bidding
Procedures Order has not been entered on or before Feb. 17, 2015,
(ii) the Auction is not held on or before March 20, 2015, (iii)
the Sale Hearing is not held on or before March 23, 2015 or (iv)
the Sale Order has not become a Final Order on or before April 6,
2015.  The closing date is scheduled to occur on or before
June 30, 2015, which may be extended until Sept. 30, 2015 if
certain conditions are satisfied.

The Debtors also are requesting approval of the provision of the
Purchase Agreement regarding the payment of a break-up fee of $32
million and an expense reimbursement not to exceed $10 million.

A hearing on the Bidding Procedures Motion will be held on
Feb. 17, 2015, at 2:00 p.m. (Eastern Time).  Objections, if any,
must be filed on or before Feb. 10.

                        About NII Holdings

NII Holdings Inc. through its subsidiaries provides wireless
communication services for businesses and consumers in Brazil,
Mexico and Argentina.  NII Holdings has the exclusive right to use
the Nextel brand in its markets pursuant to a trademark license
agreement with Sprint Corporation and offers unique push-to-talk
("PTT") services associated with the Nextel brand in Latin
America.

NII Holdings' shares of common stock, par value $0.001, were
publicly traded under the symbol NIHD on the NASDAQ Global Select
Market.

NII Holdings and 12 wholly owned subsidiaries sought bankruptcy
protection (Bankr. S.D.N.Y. Lead Case No. 14-12611) in Manhattan
on
Sept. 15, 2014.  The Debtors' cases are jointly administered and
are assigned to Judge Shelley C. Chapman.  The Debtors have tapped
Jones Day as counsel and Prime Clerk LLC as claims and noticing
agent.  NII Holdings disclosed $1.22 billion in assets and $3.068
billion in liabilities as of the Chapter 11 filing.

The U.S. Trustee for Region 2 appointed five creditors of NII
Holdings to serve on the official committee of unsecured
creditors.

NIU Holdings LLC, holder of 100% of the equity of Nextel
International (Uruguay), LLC, sought Chapter 11 bankruptcy
protection (Bankr. S.D.N.Y. Case No. 15-10155) on Jan. 25, 2015.
NIU Holdings is a direct subsidiary of Netherlands-based NIHD
Telecom Holdings, B.V., and affiliated with debtors NII Holdings,
Inc., et al.  NIU Holdings' principal asset is its equity
interests in Nextel Uruguay.  The Debtor estimated its assets at
$500 million to $1 billion and debt at $0 to $50,000.


===========
P A N A M A
===========


AES PANAMA: Fitch Affirms 'BB+' IDRs; Outlook Negative
-------------------------------------------------------
Fitch Ratings has affirmed AES Panama S.R.L.'s (AESP) foreign and
local currency Issuer Default Ratings (IDRs) at 'BB+'. Fitch also
affirms AESP's outstanding USD300 million notes due in 2016 at
'BB+'. The Rating Outlook is Negative.

AES Panama's ratings are based on the company's strong portfolio
of assets with a competitive dispatch position, its multiple power
purchase agreements (PPAs) and its adequate historical financial
profile. The ratings also reflect the company's exposure to
hydrology risk given its elevated contracted capacity, increased
volatility in cash flows evidenced during recent years and
weakening operating environment due to energy transmission
problems in the country.

Fitch expects the company's credit metrics will stabilize in the
short-to-medium term as a result of the start of operations of the
power barge in the first quarter of 2015 (1Q'15) and compensations
for up to USD60 million to be received in the next two years due
to restrictions in the country's transmission lines. The lower
spot prices and moderate improvements in hydrological conditions
observed since the second half of 2014 (2H'14) should lessen the
cash outflows for purchases of energy in the coming quarters.

KEY RATING DRIVERS

Weakened Credit Metrics:

AES Panama's financial profile has weakened and its cash flows
have exhibited increased volatility in the last two years. The
company's credit metrics deteriorated mainly as result of non-
planned purchases of energy in the spot market to fulfill
obligations derived from its PPAs. The net impact of these
transactions on operating cash was approximately USD117 million in
2013 and USD116 million in the first nine months of 2014. EBITDA
declined to negative USD1.6 million for latest 12 months (LTM)
ended in September 2014. Over the same period, leverage increased
as the company funded the acquisition of a 72MW power barge with
debt and tapped its working capital facilities to finance
purchases of energy. Cash flows could deteriorate further should
hydrology remain abnormally low or 'El Nino' effect materializes.

The start of operations of the power barge in the 1Q'15 and the
compensation payments for restrictions in country's transmission
lines should mitigate the impact of adverse hydrological
conditions. The barge will generate a cumulative incremental
EBITDA of USD108 million in the next five years, considering
capacity payments only. Revenues derived from energy dispatches
will depend on future market conditions, including spot prices.
AESP expects elevated levels of dispatch in the short to medium
term given the low reserve margins in the system. The current
variable cost of the plant is approximately USD83/MWh and spot
prices for January 2015 were above USD96/MWh. As per agreement
with the Ministry of Finance, the company will receive
compensation for future purchases in the spot market for up USD30
million in each of the next two years. These actions could help
the company to return to its historical levels of leverage by
2016, if current financial policies remain unchanged.

Cash Flow Supported by Contractual Position:

AES Panama's ratings reflect the company's contractual position
with low counterparty risk. Generation companies in Panama are
permitted to enter into PPAs for up to their firm capacity
allocation. The regulations promote the use of PPAs by requiring
distribution companies to secure 100% of their peak regulated
demand for the following year. AES Panama maintains PPAs for
approximately 90%, on average, of available capacity through 2018.
The company sells electricity under separate PPAs with the
country's three distribution companies, Empresa de Distribucion
Electrica Metro-Oeste S.A. (Edemet), Elektra Noreste (Fitch IDR of
'BBB'), and Empresa de Distribucion Electrica Chiriqui (Edechi),
with various maturities. Panamanian distribution companies appear
to have the sufficient credit quality and financial ability to
support their respective obligations under the PPAs with AES
Panama.

AES Panama benefits from a competitive portfolio of low-cost
hydroelectric generating assets, including dam-based reservoirs
and run of the river units. The diverse location of the company's
assets somewhat mitigates its exposure to hydrology risk as the
plants are located in different hydrology regions. AES Panama is
the largest generation company in the country based on installed
capacity. The company has four hydroelectric plants throughout the
country with a total installed capacity of approximately 482 MW
and different dispatch priorities. The Bayano plant (260MW)
operates during the peak load hours yet ahead of the more
expensive thermal units. La Estrella (48MW) and Los Valles (54MW)
are run of the river facilities and the first units to be
dispatched in the system. Esti (120MW) is normally dispatched
similar to run of the river facilities given the limited size of
its reservoir.

Weakening Liquidity:

The company's liquidity position has been affected during recent
years as a result of a weaker cash flow generation from operation
and the company's continued dividend payment policy. Cash on hand
as of Sept. 30, 2014 was approximately USD16 million, additionally
the issuer maintained restricted cash for approximately USD10
million in the Debt Service Reserve Account. The company's
financial policy is to maintain a minimum cash balance of USD20
million and future dividend payments may follow this policy.

Working capital debt was approximately USD35 million as of
September 2014; this compares with cash of USD16 million and a
negative LTM EBITDA of USD1.6 million. The company expects to
improve its liquidity levels as the barge starts operations and
cash outflows from purchase of energy reduces given the lower spot
prices and higher hydro production.

Exposure to Regulatory Risk:

The company's ratings also reflect its exposure to regulatory
risk. Historically, generation companies in Panama were
competitive unregulated businesses free to implement their own
commercial strategies. In the past years, the increase in
electricity prices has resulted in increased government
intervention in the sector in order to curb the impact of high
energy prices for end-users.

Exposure to Hydrological Risk:

The company maintains PPAs that represent approximately 91% of its
firm capacity for 2014 (93% in 2013). According to the local
regulator, firm capacity is calculated based on a 30-year
historical average. This elevated level exposes AES Panama to
changes in hydrological conditions such as those observed in 2013
and 2014. Generation shortfalls are covered via purchases in the
spot market. In 2013 and 1H'14, spot prices were severely impacted
by the abnormal hydrology and other factors. Since 2H'14 spot
prices has significantly declined given the decline in oil prices
and better year-over-year (YoY) hydrological conditions. In
December 2014, the average spot price was USD127.5/MWh compared to
USD212.61/MWh in December 2013. Prices considered in AESP's PPAs
with distribution companies, the company's largest clients, are
below USD100/MWh.

Currently, AES Panama's operations are being pressured by delays
in the expansion of country's transmission infrastructure. This
has further exposed the company to the spot market and triggered
the government to compensate the affected generation companies.
The Panamanian government has agreed to compensate the issuer for
future purchases in the spot market; this agreement synthetically
reduces company's contracted capacity in approximately 70MW or to
77% of its firm capacity for 2014. These compensations have a cap
of USD40 million in 2014, USD30 million in 2015 and USD30 million
in 2016. Transmission bottle necks are expected to be resolved in
2016, when the Chiriqui - Panama line starts operations.

RATING SENSITIVITIES

A downgrade could result from a combination of the following
factors: leverage above 4.0x on a sustained basis, increased
government intervention in the sector coupled with weakening
regulatory framework, inability to reduce exposure to the spot
market, and/or payment of dividends coupled with high leverage
levels.

Factors that could trigger a positive rating action include: a
sustained decrease in leverage below 3.0x coupled with an
effective diversification of revenues among different fuels, and
reduced exposure to the spot market.


======================
P U E R T O    R I C O
======================


PUERTO RICO ELECTRIC: S&P Keeps CCC Rev. Bond Rating on Watch Neg.
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it maintained its
'CCC' rating on the Puerto Rico Electric Power Authority's (PREPA)
power revenue bonds on CreditWatch with negative implications.
S&P originally placed the rating on CreditWatch on June 18, 2014.

PREPA has $8.3 billion of power revenue bonds.  A pledge of the
electric system's net revenues secures the bonds.

"The rating, which we lowered to 'CCC' from 'B-' on July 29,
indicates that we believe the authority's debt is vulnerable to
nonpayment and depends on favorable business, financial, and
economic conditions for the obligor to meet its commitment," said
Standard & Poor's credit analyst Jeffrey Panger.  In this event,
PREPA is not likely to have the capacity to meet its financial
commitment on its obligations.

"We believe that the absence of an overarching solution to
liquidity issues and the structural imbalance among its revenues,
operating expenses, and debt service commitments suggests an
increasing likelihood that the authority will not be able to
satisfy debt service obligations on time," added Mr. Panger, "and
will avail itself of the Puerto Rico Public Corporation Debt
Enforcement and Recovery Act, and restructure all or portions of
its debt."

S&P expects to resolve the CreditWatch placement in the next three
months after it has evaluated PREPA's plans and the actions they
will take to resolve the imbalance among revenues, expenses, and
debt service.

"We will lower the rating if PREPA restructures the debt by
extending maturity dates, which is a default according to our
rating policies," said Mr. Panger.


================================
T R I N I D A D  &  T O B A G O
================================


TRINIDAD AND TOBAGO: Foreign Exchange Woes Continue
---------------------------------------------------
Caribbean360.com reports that the Central Bank of Trinidad and
Tobago says it has pumped US$400 million into the banking system
in January, the largest foreign exchange intervention it has made
since selling US$315 million in November 2010.

The bank said that it started its 2015 strategic foreign exchange
management program with a US$200 million intervention on January
15 and eight days later sold US$100 million followed by another
sale of US$100 million on January 28, according to
Caribbean360.com.

The report notes that the International Monetary Fund said that
shortages of foreign exchange remain a critical headwind for the
Trinidad and Tobago economy, with businesses continuing to report
severe difficulties in paying suppliers.

But it said it was encouraged by the central bank's intention to
increase the size and frequency of foreign exchange injections
until the backlog of orders is eliminated, the report relays.

"It will be essential to continue to meet foreign exchange demands
in a timely manner in order to restore the market's confidence,"
the IMF noted, the report relays.

The Central Bank said despite selling USS1.7 billion to the
banking system last year, significant unsatisfied demand carried
over into the start of 2015, Caribbean360.com discloses.

"The negative national sentiment surrounding sharply falling oil
prices aggravated unsatisfied demand for foreign exchange as
future demands from the public and business community have been
brought forward," the Central Bank said, the report discloses.

"With elevated domestic liquidity levels fuelling strong growth of
consumer credit and helping to finance substantial imports of
consumer durables, Central Bank's foreign exchange interventions
are indirectly contributing to absorbing excess liquidity in the
banking system," Central Bank added.

The Central bank said that one objective of its monetary policy is
to maintain stable conditions in the domestic foreign exchange
market, the report relays.

"Our 2015 foreign exchange program is framed in the context of our
medium-term balance of payments outlook, which prudently views
lower energy prices as a cyclical phenomenon over the next three
years," Central Bank said, the report notes.

"This year's program is aimed at preventing foreign exchange
shortfalls from arising as a result of escalating demand and
reduced supply due to lower energy export earnings," the Central
Bank said, noting that Trinidad and Tobago's net official reserves
currently stand at US$11.1 billion, representing 12.5 months of
import cover, the report adds.


=================
V E N E Z U E L A
=================


VENEZUELA: In a Bind As Nicolas Maduro Faces Default Dilemma
------------------------------------------------------------
Global Insolvency reports that Nicolas Maduro promised "God will
provide" after Venezuela's president returned to Caracas
apparently empty handed from a world tour where he had sought
financial help for his country's ravaged economy.

Venezuela -- which is a member of Opec, the oil producer's cartel
-- is heavily dependent on exports of crude, the price of which
has more than halved since the summer, according to Global
Insolvency.

In a televised state of the nation speech, Mr. Maduro said oil
would "not return to $100", adding: "We have less foreign
currency". . . "But God will provide," the report notes.

Bondholders, worried about default, were unconvinced.

The report relays that alarmed by Mr. Maduro's seeming failure to
win support from China or fellow Opec countries such as Saudi
Arabia, they immediately marked down Venezuelan debt.  At almost
29 per cent, its benchmark 2027 bond now yields three times more
than comparable Russian debt, the report discloses.

"Growing social pressures influence [Venezuela's] willingness to
pay," said Siobhan Morden, head of Latin American strategy at
investment bank Jefferies, the report discloses.

Facing skeptical financial markets abroad and a domestic economy
that the International Monetary Fund forecasts will shrink 7 per
cent this year, Mr. Maduro and his ruling Socialist party are in a
bind, the report adds.


=================
X X X X X X X X X
=================


LATIN AMERICAN: Default Wave Just Getting Started
-------------------------------------------------
Global Insolvency, citing Bloomberg News, reports that Latin
America is turning into the world leader in corporate-bond
defaults.

Four companies in the region have skipped dollar-denominated debt
payments this month, more than any other area and almost half the
total in all of 2014, according to Global Insolvency.

The report notes that in a sign bond investors are increasingly
concerned about Latin American companies' ability to repay debt,
borrowers led by Mexico's oil-rig operators have pushed the amount
of the region's bonds trading at distressed prices to $58 billion,
about a third of all emerging-market debt trading at such levels.

The strains that have investors from Prudential Financial Inc. to
Hartford Investment Management Co. bracing for more defaults are
showing few signs of abating, the report relates.

An oil-led collapse in commodities prices has persisted, growth is
flagging in economies from Mexico to Colombia, and the biggest
corruption scandal in Brazil's history is spreading, the report
notes.  That raises the risk of even bigger losses for investors
saddled with the worst returns in emerging-markets this year, the
report relays.


                            ***********


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.


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