/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150223.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 23, 2015, Vol. 16, No. 037 Headlines B R I T I S H V I R G I N I S L A N D S AMIRA NATURE: Moody's Withdraws (P)B3 Rating on $225MM Sr. Notes C A Y M A N I S L A N D S ALPINA LTD: Placed Under Voluntary Wind-Up BPI CAYMAN: Moody's Reviews P(B2) Note Program Rating for Upgrade CANE GLOBAL: Commences Liquidation Proceedings CIUFFI OVERSEAS: Placed Under Voluntary Wind-Up CLOAK LANE: Commences Liquidation Proceedings COMMON SENSE: Commences Liquidation Proceedings COP SPV: Commences Liquidation Proceedings DSHAMILYA LTD: Commences Liquidation Proceedings ELEVENTH JULY: Commences Liquidation Proceedings EMANCIPATION CAPITAL: Placed Under Voluntary Wind-Up FIRST MEDIA: Commences Liquidation Proceedings FORTUNE SG: Placed Under Voluntary Wind-Up FULCRUM AFRICA: Commences Liquidation Proceedings FULCRUM AFRICA MASTER: Commences Liquidation Proceedings FULCRUM GLOBAL: Commences Liquidation Proceedings FULCRUM GLOBAL MASTER: Commences Liquidation Proceedings INVERSIONES EL BOHIO: Commences Liquidation Proceedings LIBRA NO. 2: Commences Liquidation Proceedings LIBRA NO. 3: Commences Liquidation Proceedings LION/NIAGARA: Shareholder Receives Wind-Up Report MAGDALENA INVESTMENTS: Commences Liquidation Proceedings MERCATOR FINANCE: Commences Liquidation Proceedings ORDINO INTERNATIONAL: Placed Under Voluntary Wind-Up PANTHERA/FUNDING: Shareholder Receives Wind-Up Report RIG FUNDING: Commences Liquidation Proceedings ROTELLA AQUARIUS: Commences Liquidation Proceedings ROTELLA AQUARIUS MASTER: Commences Liquidation Proceedings SERY INTERNATIONAL: Placed Under Voluntary Wind-Up SIGNUM VERDE: S&P Lowers Rating on $4.8BB Notes to 'BB+' THIRD AVENUE: Placed Under Voluntary Wind-Up THIRD AVENUE GLOBAL: Placed Under Voluntary Wind-Up VANQUISH INVESTMENT: Placed Under Voluntary Wind-Up XIJIAO INTERNATIONAL: Commences Liquidation Proceedings D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Talks Leading to Electricity Pact Start Wed J A M A I C A JAMAICA: Much Lower Growth Now Projected for 2014/2015 Fiscal Year JAMAICA: Fitch Affirms 'B-' IDR & Revises Outlook to Positive UC RUSAL: Possible Good News for Jamaica's Bauxite-Alumina Sector P A R A G U A Y PARAGUAY: Economic Activity Has Slowed But Still Buoyant, IMF Says P U E R T O R I C O PUERTO RICO: Moody's Downgrades GO Bonds to Caa1 SPORTS AUTHORITY: Moody's Cuts CFR to 'Caa1', Outlook Negative X X X X X X X X X * BOND PRICING: For the Week From Feb. 9 to Feb. 13, 2015 - - - - - =========================================== B R I T I S H V I R G I N I S L A N D S =========================================== AMIRA NATURE: Moody's Withdraws (P)B3 Rating on $225MM Sr. Notes ---------------------------------------------------------------- Moody's Investors Service has withdrawn the provisional (P)B3 rating on the US$225 million senior secured second lien notes due 2020. These were to be issued jointly by Amira Nature Foods Ltd Mauritius (Amira Mauritius), and Amira I Grand Foods Inc. (BVI), both wholly owned subsidiaries of Amira Nature Foods Ltd (Amira). Concurrently, Moody's placed on review for downgrade the B2 corporate family rating (CFR) and B2-PD probability of default rating (PDR) of Amira Nature Foods Ltd. "The rating action reflects the expectations that the proposed issuance of the US$225 million bonds will be postponed and will not happen in the near future," says Ernesto Bisagno, Moody's Vice President - Senior Analyst and lead analyst for Amira. On Jan. 28, 2015, Amira announced that it was offering US$225 million bonds and intended to use about US$90 million of the bond proceeds to reduce existing debt, and the remainder to increase liquidity and for general corporate purposes. The company's historical liquidity profile was somewhat constrained because free cash flows remained negative, as funds from operations were fully consumed to fund the company's organic growth which resulted in significant working capital requirements. Moody's expected that the transaction would strengthen the liquidity profile by reducing a significant part of the short-term debt and increasing Amira's cash balance by US$97 million. Amira will postpone the deal because the financial information supporting the offering became stale on February 15. Moody's is therefore withdrawing the provisional (P)B3 rating on the US$225 million secured notes. As a result, Moody's will reassess the company's financial profile, as Amira is likely to continue to rely on its short-term uncommitted working capital facilities granted from the Indian banks. Although Amira has sufficient headroom under the existing covenants, those facilities need to be rolled over. Moody's review will mainly focus on (1) the company's plans to secure committed financing that would strengthen its liquidity profile; and (2) Amira's financial policy decisions with regard to its investment plan which, if reduced, could enhance the company's free cash flow generation. Prior to the delay of the proposed issuance, Moody's had indicated that upward pressure on the rating would likely result if the company increased its sales diversification, with (1) a stabilization in the cash flow from operations, expected to be significantly negative in the current fiscal year; (2) the adjusted EBITA/interest expense ratio moving close to 3x; and (3) the adjusted gross leverage ratio remaining below 3x. Conversely, negative pressure could be exerted on the ratings if (1) the adjusted EBITA/Interest ratio falls below 2x; or (2) if the corporate realignment was delayed resulting in uncertainty about the guarantee structure for the notes; or (3) due to liquidity concerns, either as a result of weak covenants headroom or a failure to improve liquidity as expected with the issuance of the proposed notes. The principal methodology used in these ratings was Global Protein and Agriculture Industry published in May 2013. Other methodologies used include Loss Given Default for Speculative- Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Amira Nature Foods Ltd (Amira), headquartered in the British Virgin Islands, is a global provider of branded basmati rice. The company has been listed on the NYSE since 2012, and is majority- owned by Karan Chanana, with the remainder as free float. It reported revenues of US$547 million for the financial year (FY) 2014 (to March 2014) and generated sales in over 60 countries, including both emerging and developed markets. ========================== C A Y M A N I S L A N D S ========================== ALPINA LTD: Placed Under Voluntary Wind-Up ------------------------------------------ On Dec. 16, 2014, the sole shareholder of Alpina Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 16, 2015, will be included in the company's dividend distribution. The company's liquidator is: Morval Bank & Trust Cayman Ltd. Telephone: +1 (345) 949-9808 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands BPI CAYMAN: Moody's Reviews P(B2) Note Program Rating for Upgrade ----------------------------------------------------------------- Moody's Investors Service placed on review for downgrade Caixabank's Baa3 long-term debt, issuer and deposit ratings, its Ba2 subordinated debt rating and the D+ bank financial strength rating (equivalent to a ba1 baseline credit assessment). Moody's also placed Caixabank's Prime-3 short-term debt and deposit ratings on review for downgrade. At the same time, Moody's has placed on review for upgrade the Ba3 long-term debt, issuer and deposit ratings of Banco BPI S.A. and its supported entities, its B2 subordinated debt rating, the (P)B3 junior subordinated debt rating and the Caa1(hyb) preferred shares rating. The E+ BFSR (equivalent to a b1 BCA) and the Not-Prime short-term debt and deposit ratings were not affected and remain unchanged. The review for downgrade reflects Caixabank's announcement on February 17 to launch a public tender offer for the acquisition of BPI's not-yet-owned share capital (55.9%), and the negative impact the deal will have on Caixabank's solvency. The review for upgrade for BPI indicates the upward pressure that could stem from the acquisition by a stronger bank. The rating action reflects Caixabank's intention to launch a public tender offer for the acquisition of ordinary shares representing the share capital of Banco BPI and the negative impact it will have on Caixabank's solvency levels. The deal is expected to close by the end of Q2 2015. Depending on the level of acceptance of the tender offer, the effect on its solvency levels could range from 80 to 140 basis points on its fully loaded Common Equity Tier 1 (FL CET1) ratio. The acquisition will thus bring down Caixabank's FL CET 1 ratio to 10.7%-10.1%, below the 11% average of its European peers. The success of this deal is subject not only to pertinent regulatory approvals, but also to meeting the following conditions (1) achieving an acceptance level over 5.9% to ensure that Caixabank owns more than a 50% stake in BPI after the offer; and (2) the elimination of the 20% voting cap currently included in BPI's bylaws. This offer is voluntary, with a price of EUR1.33 per share payable in cash, and is directed to all the outstanding shares of BPI that CaixaBank does not hold (current shareholding of 44.1%). The bank has stated that it will reach a FL CET1 ratio above 11% post-acquisition. During the review period Moody's will focus on Caixabank's capacity to restore its solvency and risk-absorption capacity in a timely fashion. Moody's believes that the impact on asset quality and cost efficiency should be limited and manageable, given the relative size of BPI versus Caixabank (EUR42.6 billion in assets at end- 2014 versus EUR339 billion, respectively) and Caixabank's strong track record in delivering cost synergies. In addition, Caixabank's long-standing ownership at BPI should help ease the transaction's execution risks. Moody's considers that BPI's senior creditors could benefit from Caixabank's parental support if the announced tender offer is successfully completed, therefore mitigating the risks emerging from the bank's still-modest credit fundamentals. Unlike previous acquisitions, Caixabank intends to maintain BPI as an independent subsidiary. Upward pressure on Caixabank's ratings is unlikely given the current review for downgrade. Downward pressure could materialise if Caixabank fails to restore its solvency and/or if the ongoing improving trend of its asset quality and profitability is reversed. BPI's long-term ratings could be upgraded if Moody's assessment of parental support from Caixabank is deemed to be high. List of Affected Ratings: On Review for Downgrade: -- Issuer: Caixabank - Bank Financial Strength Rating, Placed on Review for Downgrade, currently D+ STA (equivalent to BCA ba1) - Issuer Rating, Placed on Review for Downgrade, currently Baa3 STA - Long-term Deposit Rating, Placed on Review for Downgrade, currently Baa3 STA - Short-term Deposit Rating, Placed on Review for Downgrade, currently P-3 - Subordinate Regular Bond/Debenture, Placed on Review for Downgrade, currently Ba2 STA - Senior Unsecured Regular Bond/Debenture, Placed on Review for Downgrade, currently Baa3 STA - Backed Senior Unsecured Regular Bond/Debenture, Placed on Review for Downgrade, currently Baa3 STA - Subordinate Medium-Term Note Program, Placed on Review for Downgrade, currently (P)Ba2 - Senior Unsecured Medium-Term Note Program, Placed on Review for Downgrade, currently (P)P-3 - Senior Unsecured Medium-Term Note Program, Placed on Review for Downgrade, currently (P)Baa3 On Review for Upgrade: -- Issuer: Banco BPI S.A. - Issuer Rating, Placed on Review for Upgrade, currently Ba3 NEG - Long-term Deposit Rating, Placed on Review for Upgrade, currently Ba3 NEG - Senior Unsecured Regular Bond/Debenture, Placed on Review for Upgrade, currently Ba3 NEG - Subordinate Regular Bond/Debenture, Placed on Review for Upgrade, currently B2 STA - Junior Subordinate Medium-Term Note Program, Placed on Review for Upgrade, currently (P)B3 - Subordinate Medium-Term Note Program, Placed on Review for Upgrade, currently (P)B2 - Senior Unsecured Medium-Term Note Program, Placed on Review for Upgrade, currently (P)Ba3 -- Issuer: BPI Capital Finance Ltd. - Backed Subordinate Medium-Term Note Program, Placed on Review for Upgrade, currently (P)B2 - Backed Junior Subordinate Medium-Term Note Program, Placed on Review for Upgrade, currently (P)B3 - Backed Senior Unsecured Medium-Term Note Program, Placed on Review for Upgrade, currently (P)Ba3 - Backed Pref. Stock Non-cumulative Preferred Stock, Placed on Review for Upgrade, currently Caa1(hyb) STA -- Issuer: Banco BPI Cayman Ltd - Backed Subordinate Medium-Term Note Program, Placed on Review for Upgrade, currently (P)B2 - Backed Junior Subordinate Medium-Term Note Program, Placed on Review for Upgrade, currently (P)B3 - Backed Senior Unsecured Medium-Term Note Program, Placed on Review for Upgrade, currently (P)Ba3 -- Issuer: Banco BPI S.A. (Cayman) - Senior Unsecured Regular Bond/Debenture, Placed on Review for Upgrade, currently Ba3 NEG - Subordinate Regular Bond/Debenture, Placed on Review for Upgrade, currently B2 STA - Junior Subordinate Medium-Term Note Program, Placed on Review for Upgrade, currently (P)B3 - Subordinate Medium-Term Note Program, Placed on Review for Upgrade, currently (P)B2 - Senior Unsecured Medium-Term Note Program, Placed on Review for Upgrade, currently (P)Ba3 -- Issuer: Banco BPI S.A. (Madeira) - Junior Subordinate Medium-Term Note Program, Placed on Review for Upgrade, currently (P)B3 - Subordinate Medium-Term Note Program, Placed on Review for Upgrade, currently (P)B2 - Senior Unsecured Medium-Term Note Program, Placed on Review for Upgrade, currently (P)Ba3 -- Issuer: Banco BPI S.A. (Santa Maria) - Junior Subordinate Medium-Term Note Program, Placed on Review for Upgrade, currently (P)B3 - Subordinate Medium-Term Note Program, Placed on Review for Upgrade, currently (P)B2 - Senior Unsecured Medium-Term Note Program, Placed on Review for Upgrade, currently (P)Ba3 Ratings unaffected -- Issuer: Banco BPI S.A. - Baak Financial Strength Rating, E+ STA (equivalent to a b1 BCA) - Short-term Deposit Rating, NP - Senior Unsecured Medium-Term Note Program, (P)NP -- Issuer: BPI Capital Finance Ltd. - Backed Senior Unsecured Medium-Term Note Program, (P)NP -- Issuer: Banco BPI Cayman Ltd - Backed Commercial Paper, NP - Backed Senior Unsecured Medium-Term Note Program, (P)NP -- Issuer: Banco BPI S.A. (Cayman) - Senior Unsecured Medium-Term Note Program, (P)NP -- Issuer: Banco BPI S.A. (Madeira) - Senior Unsecured Medium-Term Note Program, (P)NP -- Issuer: Banco BPI S.A. (Santa Maria) - Senior Unsecured Medium-Term Note Program, (P)NP Outlook Actions: -- Outlook, Changed To Rating Under Review From Negative(m) - Issuer: Banco BPI Cayman Ltd - Issuer: Banco BPI S.A. - Issuer: Banco BPI S.A. (Cayman) - Issuer: Banco BPI S.A. (Madeira) - Issuer: Banco BPI S.A. (Santa Maria) - Issuer: BPI Capital Finance Ltd. -- Outlook, Changed To Rating Under Review From Stable - Issuer: Caixabank The principal methodology used in these ratings was Global Banks published in July 2014. CANE GLOBAL: Commences Liquidation Proceedings ---------------------------------------------- On Dec. 5, 2014, the sole shareholder of Cane Global Macro, Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: David Fontenot c/o Walkers 190 Elgin Avenue, George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6386 CIUFFI OVERSEAS: Placed Under Voluntary Wind-Up ----------------------------------------------- On Dec. 15, 2014, the sole shareholder of CIUFFI Overseas Ltd resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 15, 2015, will be included in the company's dividend distribution. The company's liquidator is: Morval Bank & Trust Cayman Ltd. Telephone: +1 (345) 949-9808 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands CLOAK LANE: Commences Liquidation Proceedings --------------------------------------------- On Dec. 16, 2014, the sole shareholder of Cloak Lane Finance (Cayman) Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Feb. 2, 2015, will be included in the company's dividend distribution. The company's liquidator is: Claire Loebell c/o Steve Bull Telephone: (345) 814 9060 Facsimile: (345) 814 8529 Ernst & Young Ltd, 62 Forum Lane, Camana Bay P.O. Box 510, Grand Cayman, KY1-1106 Cayman Islands COMMON SENSE: Commences Liquidation Proceedings ----------------------------------------------- On Dec. 15, 2014, the sole shareholder of Common Sense Special Opportunity Offshore, Ltd resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Michael Wietecki c/o Walkers 190 Elgin Avenue, George Town Grand Cayman KY1-9001 Cayman Islands Telephone: (345) 914 6386 COP SPV: Commences Liquidation Proceedings ------------------------------------------ On Dec. 17, 2014, the sole shareholder of COP SPV resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Feb. 2, 2015, will be included in the company's dividend distribution. The company's liquidator is: Claire Loebell c/o Rebecca Doxey Ernst & Young Ltd 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1 -1106 Cayman Islands Telephone +1 (345) 814 9075 e-mail: Rebecca.Doxey@ky.ey.com DSHAMILYA LTD: Commences Liquidation Proceedings ------------------------------------------------ On Dec. 12, 2014, the sole shareholder of DSHAMILYA Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: James Eugene O'Neill 113 Shoreline Drive P.O. Box 30584 Grand Cayman KY1-1203 Cayman Islands Telephone: (345) 936-0080 Facsimile: (345) 943-3351 ELEVENTH JULY: Commences Liquidation Proceedings ------------------------------------------------ On Dec. 15, 2014, the members of Eleventh July Investment Ltd resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 26, 2015, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands EMANCIPATION CAPITAL: Placed Under Voluntary Wind-Up ---------------------------------------------------- On Dec. 17, 2014, the sole shareholder of Emancipation Capital Offshore, Ltd resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 27, 2015, will be included in the company's dividend distribution. The company's liquidator is: Emancipation Management LLC c/o Daniella Skotnicki Telephone: (345) 815 1861 Facsimile: (345) 949-9877 Ogier 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands FIRST MEDIA: Commences Liquidation Proceedings ---------------------------------------------- On Dec. 12, 2014, the shareholders of First Media Holdings, Ltd resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Stanley Emmett Thomas III Monitor Company Suite 1007 Shui On Centre 6-8 Harbour Road; Wan Chai Hong Kong FORTUNE SG: Placed Under Voluntary Wind-Up ------------------------------------------ On Dec. 12, 2014, the sole shareholder of Fortune SG HK HSI Dynamic Allocation Fund resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 5, 2015, will be included in the company's dividend distribution. The company's liquidator is: Stephane Serge Cluade Roger Block 78, Apt 1501 74-86 Kennedy Road Hong Kong Telephone: + 852 2166 5499 Facsimile: + 852 2166 5019 FULCRUM AFRICA: Commences Liquidation Proceedings ------------------------------------------------- On Dec. 15, 2014, the sole shareholder of The Fulcrum Africa All Cap Fund Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 26, 2015, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands FULCRUM AFRICA MASTER: Commences Liquidation Proceedings -------------------------------------------------------- On Dec. 15, 2014, the sole shareholder of The Fulcrum Africa All Cap Master Fund Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 26, 2015, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands FULCRUM GLOBAL: Commences Liquidation Proceedings ------------------------------------------------- On Dec. 15, 2014, the sole shareholder of Fulcrum Global Equity Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 26, 2015, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands FULCRUM GLOBAL MASTER: Commences Liquidation Proceedings -------------------------------------------------------- On Dec. 15, 2014, the sole shareholder of Fulcrum Global Equity Master Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 26, 2015, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands INVERSIONES EL BOHIO: Commences Liquidation Proceedings ------------------------------------------------------- On Dec. 15, 2014, the members of Inversiones El Bohio resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 26, 2015, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands LIBRA NO. 2: Commences Liquidation Proceedings ---------------------------------------------- On Dec. 12, 2014, the shareholders of Libra No. 2 Limited resolved to voluntarily liquidate the company's business. The company's liquidators are: Ms. Eleanor Fisher Zolfo Cooper (Cayman) Limited 38 Market Street, 2nd Floor, Canella Court Camana Bay, Grand Cayman Cayman Islands, KY1-9006; and Mr. Alastair Beveridge Zolfo Cooper LLP, 10 Fleet Street London, EC4M 7RB United Kingdom LIBRA NO. 3: Commences Liquidation Proceedings ---------------------------------------------- On Dec. 12, 2014, the shareholders of Libra No. 3 Limited resolved to voluntarily liquidate the company's business. The company's liquidators are: Ms. Eleanor Fisher Zolfo Cooper (Cayman) Limited 38 Market Street, 2nd Floor, Canella Court Camana Bay, Grand Cayman Cayman Islands, KY1-9006; and Mr. Alastair Beveridge Zolfo Cooper LLP, 10 Fleet Street London, EC4M 7RB United Kingdom LION/NIAGARA: Shareholder Receives Wind-Up Report ------------------------------------------------- The sole shareholder of Lion/Niagara GP (Cayman) Limited received on Jan. 27, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on Dec. 10, 2014. Only creditors who were able to file their proofs of debt by Jan. 26, 2015, will be included in the company's dividend distribution. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands MAGDALENA INVESTMENTS: Commences Liquidation Proceedings -------------------------------------------------------- On Dec. 15, 2014, the members of Magdalena Investments resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 26, 2015, will be included in the company's dividend distribution. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands MERCATOR FINANCE: Commences Liquidation Proceedings --------------------------------------------------- On Dec. 12, 2014, the sole member of Mercator Finance Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: James Eugene O'Neill 113 Shoreline Drive P.O. Box 30584 Grand Cayman KY1-1203 Cayman Islands Telephone: (345) 936-0080 Facsimile: (345) 943-3351 ORDINO INTERNATIONAL: Placed Under Voluntary Wind-Up ---------------------------------------------------- On Dec. 16, 2014, the sole shareholder of Ordino International Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 16, 2015, will be included in the company's dividend distribution. The company's liquidator is: Morval Bank & Trust Cayman Ltd. Telephone: +1 (345) 949-9808 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands PANTHERA/FUNDING: Shareholder Receives Wind-Up Report ----------------------------------------------------- The shareholder of Panthera/Funding Cayman II Cayman 3 Limited received on Jan. 5, 2015, the liquidator's report on the company's wind-up proceedings and property disposal. The company commenced liquidation proceedings on Dec. 5, 2014. Only creditors who were able to file their proofs of debt by Jan. 26, 2015, will be included in the company's dividend distribution. The company's liquidator is: Stuarts Walker Hersant Telephone: (345) 949 3344 Facsimile: (345) 949 2888 P.O. Box 2510 Grand Cayman KY1-1104 Cayman Islands RIG FUNDING: Commences Liquidation Proceedings ---------------------------------------------- On Dec. 17, 2014, the sole shareholder of RIG Funding (Cayman) Limited resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Feb. 2, 2015, will be included in the company's dividend distribution. The company's liquidator is: Claire Loebell c/o Steve Bull Telephone: (345) 814 9060 Facsimile: (345) 814 8529 Ernst & Young Ltd, 62 Forum Lane, Camana Bay P.O. Box 510, Grand Cayman, KY1-1106 Cayman Islands ROTELLA AQUARIUS: Commences Liquidation Proceedings --------------------------------------------------- On Dec. 17, 2014, the sole shareholder of Rotella Aquarius Fund, Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Rosemarie C Rotella c/o Rotella Capital Management, Inc. 800 Bellevue Way NE Suite 200, Bellevue WA 98004, USA Telephone: +1.312.467.2700 ROTELLA AQUARIUS MASTER: Commences Liquidation Proceedings ---------------------------------------------------------- On Dec. 17, 2014, the sole shareholder of Rotella Aquarius Master Fund, Ltd. resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Rosemarie C Rotella c/o Rotella Capital Management, Inc. 800 Bellevue Way NE Suite 200, Bellevue WA 98004, USA Telephone: +1.312.467.2700 SERY INTERNATIONAL: Placed Under Voluntary Wind-Up -------------------------------------------------- On Dec. 15, 2014, the sole shareholder of Sery International Ltd resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 15, 2015, will be included in the company's dividend distribution. The company's liquidator is: Morval Bank & Trust Cayman Ltd. Telephone: +1 (345) 949-9808 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands SIGNUM VERDE: S&P Lowers Rating on $4.8BB Notes to 'BB+' -------------------------------------------------------- Standard & Poor's Ratings Services lowered its rating on Signum Verde Ltd.'s Chilean peso-denominated (CLP) $4.8 billion fixed- rate notes series 2008-1 to 'BB+' from 'BBB-'. The series 2008-1 certificate issuance is an emerging markets synthetic structured financing with a first-to-default structure that is credit-linked to CAP S.A. ('BB+/Negative/--'), a Chilean mining company, and collateralized by Goldman Sachs Group subordinated debt ('A-'). In addition, the certificate holders have exposure to The Goldman Sachs Group Inc. ('A-/Negative/A-2'), which is the swap guarantor for Goldman Sachs International, the swap counterparty ('A/Stable/A-1'). The certificate issuance is credit-linked to CAP S.A., but it does not represent a direct obligation of this company. The rating action follows the Jan. 30, 2015, lowering of S&P's corporate credit rating on CAP S.A. to 'BB+' from 'BBB-'. The downgrade reflects S&P's expectation that CAP's financial risk profile will weaken in the next two years due to eroding iron prices, which S&P now expects to remain at $65 per ton in 2015 and 2016 and at $70 per ton in 2017 (Platts 62% iron content, delivered in China). Even though the new price assumptions for 2015 and 2016 are $20 per ton lower than S&P's previous ones, the hit on CAP's financial performance wouldn't be as hard given the company's cost-cutting efforts and lower capital expenditures (capex). Moreover, freight costs have significantly dropped and the CLP has depreciated 10% in the past six months, all of which S&P expects to mitigate the impact of lower iron ore prices. S&P still considers CAP's financial risk profile to be "intermediate" despite slightly weaker main credit metrics--debt to EBITDA of slightly above 3x and funds from operations to debt close to 20%--in 2015 and 2016 than what S&P typically expects for that category. S&P believes the company's ability to improve credit ratios is limited due to lower commodity prices, because CAP would need to cut capex further and/or explorations costs, which could hinder future performance. The reduced flexibility prompted S&P to remove the "positive" comparison score, which S&P had assigned while iron ore prices were higher and CAP's capital expansion cycle was ending and it benefited from the incremental volumes. If a credit event occurs regarding CAP S.A., the trustee will liquidate the underlying collateral and transfer those proceeds to the swap counterparty. The swap counterparty will then deliver the reference entity's obligations to the trust in an amount equal to the certificates' face value (adjusted by the Unidad de Fomento rate and the CLP/U.S. dollar spot rate on that day). The trustee will then distribute any of the reference entity's obligations that it receives from the counterparty to the certificate holders. S&P will continue to surveil the rating on this asset-backed transaction and revise the rating as necessary to reflect any changes in the transaction's underlying credit quality. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties, and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties, and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard and Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATINGS LIST Signum Verde Ltd. CLP4.8 bil Signum Verde Limited (Goldman Sachs) Rating Class Identifier To From 2008-1 XS0342733242 BB+ (sf) BBB- (sf) THIRD AVENUE: Placed Under Voluntary Wind-Up -------------------------------------------- On Dec. 16, 2014, the sole shareholder of Third Avenue Emerging Markets (Offshore) Fund, Ltd resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 27, 2015, will be included in the company's dividend distribution. The company's liquidator is: Third Avenue Management LLC c/o Daniella Skotnicki Telephone: (345) 815 1861 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands THIRD AVENUE GLOBAL: Placed Under Voluntary Wind-Up --------------------------------------------------- On Dec. 16, 2014, the sole shareholder of Third Avenue Global Value (Offshore) Fund, Ltd resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 27, 2015, will be included in the company's dividend distribution. The company's liquidator is: Third Avenue Management LLC c/o Daniella Skotnicki Telephone: (345) 815 1861 Facsimile: (345) 949-9877 89 Nexus Way, Camana Bay Grand Cayman KY1-9007 Cayman Islands VANQUISH INVESTMENT: Placed Under Voluntary Wind-Up --------------------------------------------------- On Dec. 15, 2014, the sole shareholder of Vanquish Investment Ltd. resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 15, 2015, will be included in the company's dividend distribution. The company's liquidator is: Morval Bank & Trust Cayman Ltd. Telephone: +1 (345) 949-9808 P.O. Box 30622 Grand Cayman KY1-1203 Cayman Islands XIJIAO INTERNATIONAL: Commences Liquidation Proceedings ------------------------------------------------------- On Dec. 11, 2014, the sole shareholder of Xijiao International Limited resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Adrian Chan 1503 Ruttonjee House 11 Duddell Street Hong Kong =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Talks Leading to Electricity Pact Start Wed --------------------------------------------------------------- Dominican Today reports that the consultations to discuss recommendations and proposals leading the Electricity Pact begin in San Francisco (northeast) Wednesday, Feb. 25, 2015, which the Government's representative noted that they'll also be carried out through a website. Antonio Isa Conde said the consultations will be conducted through the country's 10 planning regions, with chosen locations including academic centers that can accommodate participants, according to Dominican Today. San Francisco's Nordestana University will be the site on Wednesday, Feb. 25; the central cities Bonao on the 23rd, Santiago and then Mao, and finally the East and South regions, the report notes. The report relays that Mr. Isa said proposals will be debated and processed, then taken to the workbench based on existing topics. "There'll be a workbench for every central topic where the people or delegates called to the pact will go," the report quoted Mr. Isa as saying. Mr. Isa said in addition to processing proposals each table will analyze the consultations' results, reiterating that the pact's stages are consultation, discussion and materialization, the report adds. ============= J A M A I C A ============= JAMAICA: Much Lower Growth Now Projected for 2014/2015 Fiscal Year ------------------------------------------------------------------ RJR News reports that the Jamaican Government has now conceded that it is expecting economic expansion for the current fiscal year, which ends on March 31, to be far lower than previously projected. Finance Ministry data tabled in Parliament show growth for the 2014/2015 fiscal year is now expected to be 0.3%, according to RJR News. That is much lower than the one per cent revised growth projection, which was projected by Finance Minister Dr. Peter Phillips as late as December, the report notes. The original projection was 1.4% growth for the fiscal year. The report relays that Dr. Phillips explained that the decline was "largely" due to a falloff in agricultural production during the year. Agricultural output was significantly affected by a severe drought in 2014, the report relays. Dr. Phillips said the government will now focus on improving irrigation of agricultural lands to mitigate the impact of a few months of lower than normal rainfall in the future, the report adds. JAMAICA: Fitch Affirms 'B-' IDR & Revises Outlook to Positive ------------------------------------------------------------- Fitch Ratings has affirmed Jamaica's long-term foreign and local currency Issuer Default Ratings (IDRs) at 'B-'. The issue ratings on Jamaica's senior unsecured foreign and local currency bonds are also affirmed at 'B-'. The Rating Outlooks on the long-term IDRs are revised to Positive from Stable. The Country Ceiling is affirmed at 'B' and the short-term foreign currency IDR at 'B'. KEY RATING DRIVERS The revision of the Outlook of Jamaica's IDRs to Positive reflects the following key rating drivers: External financing risks have diminished. The Bank of Jamaica has built up reserves equivalent to more than three months of current account payments. The current account deficit declined to an estimated 6% of GDP in 2014, compared with an average of nearly 10% of GDP in 2009-2013. The current account adjustment has been driven by tight fiscal policy and currency depreciation, but services and remittances are also on an upward trend. Fitch expects the CAD to narrow further in 2015-2016, to 3%-4% of GDP, assisted by lower imported fuel prices. Capital inflows have also strengthened. FDI doubled in 2014 to reach 4%-5% of GDP, and Fitch expects similar levels of FDI in 2015-2016. A narrower CAD has contributed to lower external financial needs. The government is sticking to a fiscal and structural adjustment designed to bring down government indebtedness. Jamaica is on course to meet its 7.5% of GDP primary fiscal surplus target for the second successive fiscal year (FY) in FY2014/2015, recording a small overall deficit. Maintaining this primary surplus is the overarching target under the Extended Fund Facility (EFF) arrangement with the IMF. Under realistic assumptions, maintaining this surplus will put government debt/GDP on a downward path from its very high starting point of 131.6% of GDP (estimated) at end FY2014/2015 to 120% of GDP by end FY2016/2017. The government's biggest near term challenge is to reduce the public sector wage bill to 9% of GDP in 2015-2016, an adjustment of 1pp of GDP. The economy is showing signs of revival, growing at an underlying rate of almost 2% before being hit by a sharp contraction in agriculture in the second half of 2014 (2H'14). Unemployment fell by 1.6pp in 2014, but remains high at 13.8%. Growth in tourism, the re-opening of some shuttered capacity in the bauxite and alumina sector, infrastructure investments, a strengthening U.S. economy and an improvement in terms of trade all point to stronger growth in 2015-2016 of around 2%, well above the lacklustre five- year average of 0.2%. The government has demonstrated access to external bond markets, prefinancing external debt maturities in 2015. But it has been unable to reopen the domestic debt market at medium and long term maturities in local currency, still highly illiquid following the domestic debt exchange in 2013. Financing flexibility is therefore limited. The rating level also reflects the following factors: Jamaica's government debt burden is the fourth-highest among rated sovereigns, and well above the 'B' median. Even after the debt exchange, interest payments account for 28% of spending. Around 61% of government debt is denominated in foreign currency, including some domestic debt. Currency depreciation worsens government solvency. While Jamaica has avoided imposing punitive losses on bondholders, it has twice reprofiled domestic debt (in 2010 and 2013), which constitutes a default under Fitch's methodology. Structural indicators such as governance, human development and per capita income are better than the 'B' median. The crime rate, which has deterred investment, is falling and business environment indicators are improving, according to the World Bank's Doing Business survey. RATING SENSITIVITIES These risk factors could individually or collectively lead to positive rating action: -- Higher economic growth and improved fiscal performance leading to faster debt reduction. Further reserve accumulation and strengthening in the balance of payments would improve confidence in the Jamaican dollar. This would ease pressure on government solvency and inflation. The current rating Outlook is Positive. Consequently, Fitch does not currently anticipate developments with a material likelihood of leading to a downgrade. However the following factors could lead to a negative rating action: Failure to adhere to the IMF programme would remove a source of balance of payments support and hurt private sector and creditor confidence, renewing concerns about fiscal and external financing. -- A sustained fiscal deterioration leading to higher unfavorable debt dynamics. -- Confidence shocks that lead to macroeconomic and financial sector instability. KEY ASSUMPTIONS Fitch assumes that Jamaica will continue to make the necessary policy adjustments to successfully perform under the EFF, contributing to rebuilding domestic confidence and receive technical and financial support from multilaterals. Fitch assumes that the Petrocaribe agreement with Venezuela for the financing of oil imports will remain in place over the forecast period. Fitch's fiscal and external projections do not factor in weather- related shocks over the forecast period. Such events would require additional policy adjustments to maintain fiscal consolidation and macroeconomic stability. UC RUSAL: Possible Good News for Jamaica's Bauxite-Alumina Sector ----------------------------------------------------------------- RJR News reports that developments in the global aluminum market could strengthen the Jamaican Government's resolve to have its bauxite/alumina facilities reopened. The latest developments come in the form of news from Russian aluminum producer U.C. Rusal, according to RJR News. The report notes that UC Rusal, which has a major stake in Jamaica's bauxite/alumina sector, says aluminum stocks have declined to four million metric tons for the first time since May 2009. This decline in stocks has already caused the price of aluminum to rise, the report relates. UC Rusal's expectation is that reported and unreported stocks are being delivered to markets to address the supply deficit, and up until now there has not been significant downward pressure on premiums, with levels in the US and Asia remaining around record levels, 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. =============== P A R A G U A Y =============== PARAGUAY: Economic Activity Has Slowed But Still Buoyant, IMF Says ------------------------------------------------------------------ On February 12, 2015, the Executive Board of the International Monetary Fund (IMF) concluded the Article IV consultation with Paraguay, and considered and endorsed the staff appraisal without a meeting. Economic activity in Paraguay has slowed from the record-high growth in 2013, but remains buoyant. Construction, manufacturing, and services led the expansion in 2014, whereas electricity production declined, and re-exports suffered from weak growth in Brazil. Full-year growth is estimated to have slightly exceeded 4 percent. Inflation spiked in early 2014 on account of higher food and regulated prices, but subsequently eased, ending the year at 4.2 percent, slightly below the authorities' midpoint target. Credit growth has moderated from earlier peak rates but still hovers around 20 percent, while banks continue to report strong capitalization and profitability. Macroeconomic policies have been tightened somewhat since late 2013. Tax revenue grew at a brisk pace in 2014, linked to better enforcement and new taxes. Due to lower revenue from electricity royalties and faster execution of spending in the latter part of the year, the headline deficit increased slightly relative to 2013. Still, estimates point to a modest contractionary impulse. Monetary policy has been on hold since the central bank (BCP) raised the official policy rate by 125 basis points, to 6.75 percent, between December 2013 and February 2014. Real GDP is projected to remain close to 4 percent in 2015. Weak trading partner growth and lower export prices cloud the outlook, and agricultural production is projected to rise only marginally above the high level of 2014. However, positive impulses should come from the projected rebound in electricity generation, the lower oil price, and the launch of new infrastructure projects. The external current account is projected to switch from a small surplus in 2014 to a moderate deficit in 2015, reflecting weaker terms of trade. Risks around the outlook are broadly balanced. On the one hand, worsening terms of trade could affect domestic spending more than anticipated, while further ruble depreciation might hurt exports to Russia. On the other hand, looser-than-expected macroeconomic policies and efforts to exploit a recently discovered hydrocarbon resource could create upside surprises. Inflation is expected to hover around the 4.5 percent target in 2015, as recent Guarani depreciation and a small positive output gap offset the impact of lower commodity prices. Executive Board Assessment In concluding the 2014 Article IV consultation with Paraguay, Executive Directors endorsed the staff's appraisal as follows: The government has started to tackle some of the long-standing structural weaknesses holding back development. Tax collection has improved significantly, creating space for higher public investment; preparations are underway to launch several large infrastructure projects; and the recently adopted "freedom-of- information" law will foster government transparency. These efforts are commendable, and should be extended to achieve lasting improvements in public services, institutional quality, and the rule of law. Such improvements, in turn, are critical to attract investment, boost productivity, and underpin medium-term growth and poverty reduction. Paraguay's macroeconomic fundamentals remain sound, though the 2015 budget has dimmed hopes that the Fiscal Responsibility Law (FRL) would provide a firm institutional anchor for fiscal prudence. Paraguay boasts moderate public debt, low inflation, and strong external balances. To consolidate macroeconomic stability, the authorities have adopted new policy frameworks in recent years, notably an inflation targeting regime and the FRL. These frameworks provide appropriate anchors for policy. It is thus unfortunate that the approved 2015 budget envisages spending and a deficit above the mandated limits. With due restraint in the execution of the budget and continued efforts to improve tax enforcement, it remains possible to achieve the original FRL targets and thereby bolster the credibility of the fiscal rules. Over time, a stronger budget process will be essential to support fiscal discipline. More broadly, it will be crucial to integrate the planned improvement of public services into a prudent fiscal plan for the medium term. The authorities' reform strategy holds great promise, but should not come at the expense of weakening Paraguay's solid macroeconomic position. This puts a premium on generating sufficient revenue to accommodate spending plans and preserve favorable debt dynamics. To ensure public support, it is important that additional revenue effectively translates into better public services. Civil service reform would assist this endeavor, by rationalizing public employment and raising efficiency. A prudent medium-term fiscal plan should also incorporate some buffer against adverse shocks, given the high volatility of Paraguay's economic environment. In the same vein, it will be important to contain fiscal risks related to infrastructure projects, State Owned Entreprises (SOEs), and public pension funds. Private sector participation in infrastructure is welcome but must be managed carefully to contain risks to the public finances. Particular caution is warranted with respect to deferred financing schemes that could create government liabilities without the scrutiny of the regular budget process. Fiscal risks could also arise from the missing oversight of Paraguay's pension funds and their actuarial imbalances. It is encouraging that the authorities plan to address these risks proactively, starting with the planned creation of a regulator. Similar resolve is required to address the financial and operational challenges in the SOE sector. Monetary policy is currently well calibrated, and efforts should focus on further enhancing the effectiveness of the inflation targeting regime. To strengthen the transmission of monetary policy, it will be instrumental to develop a more active money market and encourage gradual de-dollarization. Meanwhile, the central bank's plan to make its sales of government foreign- currency receipts more predictable will help to distinguish these transactions clearly from occasional discretionary intervention within the flexible exchange rate regime. In light of continued strong credit growth, the authorities should closely monitor potential risks and consider targeted macroprudential tightening. Paraguay's banking system remains sound, but the long-running credit expansion calls for vigilance. To contain the risks from rising consumer indebtedness, lenders should be formally required to observe prudent limits on households' debt servicing capacity. Other areas for stepped-up oversight include foreign-currency lending; and the proper recognition of credit risk in renegotiated loans. In this context, the proposed revision of the central bank and banking laws is essential to put risk-based regulation and supervision on a robust legal basis. Another priority is to strengthen the governance, resources, and enforcement powers of Instituto Nacional de Cooperativismo (INCOOP). ====================== P U E R T O R I C O ====================== PUERTO RICO: Moody's Downgrades GO Bonds to Caa1 ------------------------------------------------ Moody's Investors Service downgraded the Commonwealth of Puerto Rico's general obligation bonds and guaranteed debt to Caa1 from B2, its Sales Tax Financing Corporation (COFINA) senior and subordinate bonds, respectively, to B3 and Caa1 from Ba3 and B1, and the notes of the Government Development Bank for Puerto Rico, to Caa1 from B3. Additionally, the Puerto Rico Highway and Transportation Authority's senior bonds were downgraded to Caa2 from Caa1, while ratings on the Puerto Rico Aqueduct and Sewer Authority (PRASA) have been affirmed at Caa1, in connection with this action. Other securities affected are listed at the end of this report. A negative outlook has been maintained for all of Puerto Rico's governmental and public corporation debt. Tax revenue shortfalls attributable to sluggish economic growth may accelerate the depletion of Puerto Rico's already very narrow liquidity, leaving the commonwealth unprepared to manage substantial growth in debt payments in the fiscal year starting July 1. Continued liquidity for operations and debt repayment depends on access to a small lender group. Tax reforms now before the legislature, which are uncertain in their timing and their results, further signal a rising degree of political risk that could ultimately cause outcomes unfavorable to bondholders. These factors have increased the probability of default on GDB, GO, COFINA and other central government debt to a high level, during the next two years. Downgrades of some ratings to Caa2, a notch below the commonwealth's GO rating, reflect the vulnerability of pledged revenues to a constitutional provision that provides a claim in favor of general obligation bondholders. At the same time, we see no material increase in risks associated with PRASA. The outlook for Puerto Rico remains negative. Weakening liquidity and economic deterioration may put increasing pressure on the commonwealth's credit position in coming months, heightening the risk of default on central government obligations. Efforts to access the capital market, if successful, may bolster liquidity in the short term but will not address fundamental economic and fiscal stress. Significant tax reforms may have a longer-term fiscal benefit, but also signal the difficulty of meeting all obligations in the near term under the current fiscal structure. What could make the rating go up: -- Moody's does not anticipate an upward rating movement at this time What could make the rating go down: -- Indications that the commonwealth is actively considering debt restructuring or other strategies that would lead to default -- Significant further weakening of GDB liquidity -- Decline in revenues caused by economic or other factors Puerto Rico is a territory of the United States. It has issued general obligation bonds, subject-to-appropriation bonds, pension funding bonds, sales tax revenue bonds and bonds backed by revenues of public utilities and authorities. This action affects many of the commonwealth's securities, including the GO debt, which is a full faith and credit obligation of the commonwealth. Use of Proceeds: - Not applicable. Ratings Affected: Downgraded to B3 - COFINA Senior (from Ba3) - Puerto Rico Industrial Development Corp (PRIDCO, from Ba3) Downgraded to Caa1 - General Obligation and guaranteed debt (from B2) - Government Development Bank Notes (from B3) - Municipal Finance Agency (from B3) - COFINA Subordinate (from B1) Downgraded to Caa2 - Appropriation debt (from B3) - Employees Retirement System Pension Bonds (from B3) - Infrastructure Financing Authority (from B3) - Convention Center District Authority (from Caa1) - Highway Transportation Authority Senior (from Caa1) Affirmed at Caa1 - Aqueduct and Sewer Authority (Caa1) Affirmed at Caa2 - Highway and Transportation Authority Subordinate (Caa2) The principal methodology used in rating the Commonwealth of Puerto Rico, Puerto Rico Municipal Finance Agency, Puerto Rico Highway & Transportation Authority, Puerto Rico Aqueduct and Sewer Authority, Puerto Rico Infrastructure Financing Authority, Government Development Bank for Puerto Rico, Convention Center District Authority, and Puerto Rico Public Finance Corporation debt was US States Rating Methodology published in April 2013. The additional methodology used in rating the Puerto Rico Highway & Transportation Authority debt, the Puerto Rico Infrastructure Financing Authority debt, and the Puerto Rico Convention Center District Authority debt was US Public Finance Special Tax Methodology published in January 2014. The additional methodology used in rating the Puerto Rico Aqueduct and Sewer Authority was US Municipal Utility Revenue Debt published in December 2014. The additional methodology used in rating the Puerto Rico Public Finance Corporation debt was The Fundamentals of Credit Analysis for Lease-Backed Municipal Obligations published in December 2011. The principal methodology used in rating the Puerto Rico Sales Tax Financing Corporation debt and the Puerto Rico Industrial Development Company debt was US Public Finance Special Tax Methodology published in January 2014. An additional methodology used in this rating was US States Rating Methodology published in April 2013. SPORTS AUTHORITY: Moody's Cuts CFR to 'Caa1', Outlook Negative -------------------------------------------------------------- Moody's Investors Service downgraded The Sports Authority Inc.'s Corporate Family Rating to Caa1 from B3 and Probability of Default Rating to Caa1-PD from B3-PD. Moody's also downgraded the rating on the company's $300 million senior secured term loan to Caa1 from B3. The ratings outlook is negative. Ratings downgraded: -- Corporate Family Rating to Caa1 from B3; -- Probability of Default Rating to Caa1-PD from B3-PD ; -- $300 million senior secured term loan due 2017 to Caa1 (LGD 3) from B3 (LGD 3) The downgrade of the Corporate Family Rating to Caa1 reflects Sports Authority's weak liquidity stemming from the need for the company to address near-term debt maturities. While maturing on Nov. 16, 2017, the company's senior secured term loan will come due on Feb. 2, 2016 if its subordinated notes remain outstanding on that day. In Moody's view, the term loan effectively became current on Feb. 2, 2015. In addition, the company's operating performance and debt protection metrics remain weak, with lease- adjusted debt/EBITDAR rising to over 8.25 times and EBITA/interest falling well below 1.0 time in the latest twelve month period ended Nov. 1, 2014. At these operating levels, Sports Authority's capital structure is unsustainable over the longer term, and the risk of a default, including a distressed exchange, is high given the upcoming maturities. Management continues to implement its operational improvement plan, which includes cost savings initiatives and investments in the customer shopping experience through improved product merchandising and stock levels, more strategic store remodel/relocation and marketing plans, and e-commerce initiatives. However, when considering margin pressures stemming from a highly promotional retail environment and increased shipping costs related to higher e-commerce sales, these investments have exacerbated EBITDA declines. Should these initiatives not bear fruit over the next twelve months, refinancing its capital structure could be challenging. Sports Authority's $350 million subordinated notes (not rated by Moody's) mature on May 3, 2016. The $300 million secured term loan matures on Nov. 16, 2017, but could come due on Feb. 2, 2016 if any subordinated notes remain outstanding on that day, or if the subordinated notes are not refinanced with an extended maturity date greater than 91 days after the term loan maturity date. The $650 million ABL (unrated by Moody's) expires on May 17, 2017. The Caa1 rating on the senior secured term loan reflects its junior position to the $650 million ABL, which has a first lien on the company's more liquid assets. The rating is also supported by the cushion provided by more junior claims in the capital structure, including $343 million of subordinated notes. The negative outlook reflects the company's need to show improvement in operations and improve liquidity by addressing near term debt maturities. The ratings could be downgraded if the probability of a default increases over the very near term through the inability to refinance its debt, or should substantive progress not be made by the time the subordinated notes become current on May 3, 2015. Continued weakening in operating performance and debt protection metrics could also lead to a ratings downgrade. The outlook could return to stable if the company addresses its near term refinancing risk while maintaining adequate liquidity. An upgrade would require maintenance of adequate liquidity via the successful refinancing of its full capital structure, as well as improved operating performance such that lease-adjusted debt/EBITDAR falls below 7 times and EBITA/interest expense is sustained above 1 times. The Sports Authority, Inc. is a full-line sporting goods retailer operating 467 stores in 41 states and Puerto Rico. Revenues approached $2.7 billion for the twelve months ended Nov. 1, 2014. The company is owned by private equity firm Leonard Green & Partners, L.P. The principal methodology used in these ratings was Global Retail Industry published in June 2011. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. ================= X X X X X X X X X ================= * BOND PRICING: For the Week From Feb. 9 to Feb. 13, 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 * * *