TCRLA_Public/150318.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

            Wednesday, March 18, 2015, Vol. 16, No. 054


A N T I G U A  &  B A R B U D A

ANTIGUA & BARBUDA: APUA Makes Changes to Interconnection Policy


ARGENTINA: Central Bank's Vanishing Profit is Bullish


BRAZIL: Protesters Call for Rousseff Impeachment
COMPANHIA DE SANEAMENTO: Ratings Downgrade Risk Higher, Fitch Says
SETE BRASIL: S&P Lowers Rating to 'B-' & Remains on Watch Neg.

C A Y M A N  I S L A N D S

DELTA SPV2: Shareholders' Final Meeting Set for March 25
DODECANESE LIMITED: Members' Final Meeting Set for March 31
HIGHLAND SOLA: Shareholder to Hear Wind-Up Report on March 31
LIONGATE LIQUID: Shareholders' Final Meeting Set for March 25


COLOMBIA TELECOMUNICACIONES: Fitch Rates Prop. Notes Issuance 'B+'

D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: 1Q Electricity Subsidy Down RD$2.9 Billion


JAMAICA: Consumer Prices Down 1.1%


CORPORACION PESQUERA: Fitch Ups Foreign Currency IDR to 'BB-'
PERU: Keeps 3.25% Rate to Bolster Sol Amid Increased Volatility

T R I N I D A D  &  T O B A G O

TRINIDAD & TOBAGO: Prestige Head Bats for Caribbean Workers

                            - - - - -

A N T I G U A  &  B A R B U D A

ANTIGUA & BARBUDA: APUA Makes Changes to Interconnection Policy
The Daily Observer reports that the Antigua Public Utilities
Authority (APUA) is reducing the amount they pay to small
renewable energy producers.

Leader of Government in the Senate Lennox Weston said excess
electricity put into the grid by small renewable energy producers
had previously been valued at the same rate as electricity sold by
APUA, according to The Daily Observer.

"Initially that was priced on a one and one basis without
calculating the cost of integrating those small energy producers
into the system and the fact that they are really storing their
intermittent power supplies on line," the report quoted Mr. Weston
as saying.

"If you are a small producer and you produce a little surplus on
your roof and you are saying your want to sell it back to APUA at
the price they are selling their current, then it is not a fair
representation of the cost of APUA, because the company has
additional cost of maintaining grid stability, maintaining the
interconnection and of course they provide online storage," added
the minister of state in the Ministry of Finance, according to The
Daily Observer.

The report notes that APUA's Electricity Manager Andre' Mathias
alluded to the points made by Senator Weston.

Mr. Mathias said changes have been made to the meter system and
the authorities have also moved to revamp the application process
for the policy, the report notes.

"We have move to a net billing situation where we basically are
going to have essentially one meter with two registers.  One
register will record the power from APUA to the customer and that
rate is APUA's normal tariff and the other register will record
the power from the customer to APUA and then we pay at a lower
rate," Mr. Mathias said, the report relays.

Mr. Mathias said prior to this, the nearly 70 customers who access
the program were connected under a net metering policy, the report

Mr. Mathias explained that under this policy there is a revenue
meter which goes in one direction when APUA supplies the customer
and the opposite when the customer produces excess power onto the
grid, the report relays.

This, Mr. Mathias said, is not beneficial to the statutory

"What has been happening is that there is an opportunity to have
zero consumption and then APUA only gets paid for a minimum charge
of EC$25.  What we are saying that is not fair to APUA, because in
the night we have to supply the customers.  What we sell is a
service, so along with the energy we have meter reading charges,
billing charges a lot of which APUA would have to absorb in that
situation," Mr. Mathias said, the report adds.


ARGENTINA: Central Bank's Vanishing Profit is Bullish
Camila Russo at Bloomberg News reports that Argentina's central
bank is poised to post its smallest profit in at least a decade
this year. And that, curiously enough, may be a good thing.

Here's why: The declining profit signals central bankers are
taking a more aggressive tack in trying to curb an inflation rate
that has for years been one of the highest in the world, according
to Bloomberg News.  They're issuing more short-term debt, and
selling it at interest rates that are almost double the levels of
two years ago, to drain some of the excess cash in the economy
that's been fueling inflation, the report adds.

Those sales are swelling the interest payments the bank has to
make, cutting into profits, Bloomberg News relates.

While ideally Argentina's central bank would be able to tighten
the money supply by selling assets from its credit portfolio -- as
the U.S. Federal Reserve would do, for instance -- the fact that
it's stepping up sales of its own debt instruments to achieve this
goal is encouraging, according to Walter Molano, the head of
research for BCP Securities LLC, Bloomberg News relays.

"It's costly in the short run, but it's beneficial to the country
and the economy," Mr. Molano told Bloomberg in a telephone

The push was initiated by then central bank president Juan Carlos
Fabrega a year ago, when inflation was at 37 percent and he raised
rates on the bank's benchmark three-month peso notes to as high as
28.9 percent, Bloomberg News discloses.

When Mr. Fabrega was ousted after just 11 months in office, his
successor, Alejandro Vanoli, continued the policy, never letting
rates fall below 25 percent, Bloomberg News relays.

                          Weekly Auctions

That more expensive debt will cost the central bank ARS83.9
billion ($957.5 million) in interest payments this year, almost
double the amount in 2014, according to Buenos Aires research
company Estudio Bein, reports Bloomberg News.  The bank's profit
will fall to ARS7.6 billion this year from ARS95.6 billion in
2014, notes the report.

                Still, Policy Has Paid Off

This year alone, the central bank has used its weekly note
auctions to drain a record ARS41 billion from the economy,
Bloomberg News notes.

That's helped slow annual inflation to 35 percent, according to an
index based on private economist estimates published by opposition
law makers, says Bloomberg News.

It's also helped limit declines in the peso to 3.4 percent this
year, the least among Latin American currencies, Bloomberg News
notes.  By comparison, the peso had already tumbled 17 percent in
the same period in 2014.  The central bank closely regulates the
market and influences the exchange rate by buying and selling
dollars on a daily basis, Bloomberg News relays.

                           Black Market

In the illegal black market, where Argentines locked out of the
official market buy foreign currency, the peso has strengthened 20
percent since September to ARS12.8 per dollar, Bloomberg News

"The central bank is taking on more debt to sterilize the money it
passes on to the treasury," Bloomberg News quoted Daniel Marx, a
former finance secretary who runs Buenos Aires consulting company
Quantum Finanzas, as saying.  "If they didn't do this, we'd have
faster inflation and more uncertainty in the currency market."

To Jefferies Group LLC's Siobhan Morden, the measures need to be
followed up with spending cuts because the smaller profit will
deprive the government of revenue at a time when it's facing the
biggest deficit on record, Bloomberg News notes.

The government, locked out of international debt markets following
last year's default, depends on the central bank for its funding,
Bloomberg News relays. The bank transfers its profit to the
treasury, gives it cash advances and helps pay international
creditors with foreign reserves, Bloomberg News adds.

                        'More Worrisome'

"The more worrisome concern is how to adjust the fiscal accounts
and reduce the dependence upon central-bank monetization," Morden,
the head of Latin America fixed income at Jefferies, said in a
March 5 report, Bloomberg News notes.

The central bank has posted a profit every year since at least
2002, according to Estudio Bein, Bloomberg News says.

The falling inflation rate and slower depreciation of the peso
have also helped quell capital flight, helping reserves climb 18
percent from an eight-year low in April to $31.4 billion,
Bloomberg News discloses.

"These are good first steps," BCP's Molano said, Bloomberg News

                          *     *     *

The Troubled Company Reporter-Latin America, on Aug. 1, 2014,
reported that Argentina defaulted on some of its debt late July 30
after expiration of a 30-day grace period on a US$539 million
interest payment.  Earlier that day, talks with a court- appointed
mediator ended without resolving a standoff between the country
and a group of hedge funds seeking full payment on bonds that the
country had defaulted on in 2001.  A U.S. judge had ruled that the
interest payment couldn't be made unless the hedge funds led by
Elliott Management Corp., got the US$1.5 billion they claimed.
The country hasn't been able to access international credit
markets since its US$95 billion default 13 years ago.

As a result, reported the TCR-LA on Aug. 1, Standard & Poor's
Ratings Services lowered its unsolicited long-and short-term
foreign currency sovereign credit ratings on the Republic of
Argentina to selective default ('SD') from 'CCC-/C'.

The TCR-LA, on Aug. 4, 2014, also reported that Fitch Ratings
downgraded Argentina's Foreign Currency Issuer Default Rating
(IDR) to 'RD' from 'CC', and its Short-Term Foreign Currency
Issuer Default Rating to 'RD' from 'C'.

Meanwhile, Moody's Investors Service affirmed Argentina's Caa1
issuer rating, which also applies to domestic law bonds, confirmed
the (P)Caa2 rating for its foreign law bonds, and affirmed the Ca
rating on the original defaulted bonds. The long-term issuer
rating was placed on negative outlook, reported the TCR-LA on Aug.
5, 2014.

On Aug. 8, 2014, the TCR-LA reported that Moody's Latin America
Agente de Calificacion de Riesgo affirmed the deposit, debt,
issuer and corporate family ratings on Argentina's banks and
financial institutions, both on the global and national scales.
The outlook on these ratings has been changed to negative from
stable. At the same time, the rating agency has affirmed the
banks' Caa2 foreign-currency deposit ratings and Not-
Prime short-term ratings. The banks' standalone E financial
strength ratings corresponding to caa1 baseline credit assessments
(BCA) have also been affirmed.

The TCR-LA, On Aug. 6, 2014, also reported that DBRS Inc. has
downgraded Argentina's long-term foreign currency issuer rating
from CC to Selective Default (SD).  The short-term foreign
currency rating has been downgraded to Default (D), from R-5.  The
long-term and short-term local currency issuer ratings have been
confirmed at B (low) and R-5, respectively.  The trend on the
long-term local currency rating is Negative, and the trend on the
short-term local currency rating is Stable.

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

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


BRAZIL: Protesters Call for Rousseff Impeachment
Jonathan Watts at The Guardian reports that more than half a
million Brazilians took to the streets to protest against
corruption, demand the impeachment of President Dilma Rousseff
and, in some cases, to call for a military coup.

The rightwing demonstration comes amid growing frustration at the
moribund economy, political constipation and a huge bribery
scandal at the state-run oil company, Petroleo Brasileiro S.A.
(Petrobras), according to The Guardian.

The report notes that singing the national anthem, waving flags
and chanting "Fora Dilma", between 10 and 20 thousand
predominantly white, middle class people marched along the
seafront at Copacabana to insist on a change of government barely
five months after Rousseff was re-elected.

Police estimated the crowd in Rio de Janeiro at 25,000.  In the
center of Sao Paulo, ten times that number joined a rally on
Avenida Paulista, according to the Datafolha polling agency, the
report notes.  In the capital, Brasilia, 40,000 rallied in front
of Congress.  In both Belo Horizonte and Belem, about 20,000
people joined the anti-government demonstrations.  Another 40,000
were reported on the streets in Ribeirao Preto in Sao Paulo state
and 100,000 in Porto Alegre, says The Guardian.

Altogether demonstrations took place in more than 60 cities, also
including Recife, Salvador, Manaus and Fortaleza with the overall
turnout likely to exceed 500,000, the report notes.  Local media
and police reported a total of more than a million people, though
their figures were based on a four-time higher estimates of the
crowd in Sao Paulo, the report relays.

In Rio, many wore the canary yellow jerseys of the national
football team or bore banners declaring outrage at a range of
perceived national ills and policies that they say have more in
common with less stable and more radical leftwing government in
Latin America, says the report.

The Guardian notes that President Rousseff said she supported the
protesters' rights to march and expressed hope that the rallies,
which mark the 30th anniversary of the end of military rule, would
demonstrate Brazil's "democratic maturity".

Opposition leader Aecio Neves, who lost by a narrow margin in
October, said the protesters "went to the streets to reunite with
their virtues, their values and also with their dreams," the
report discloses.

Many expressed support for a more radical rightwing politician,
Jair Bolsonaro, who is a military reservist and has defended the
dictatorship era, the report relays.  Although he has upset many
with homophobic and sexist comments he won more votes in Rio than
any other congressman last year, the report notes.

The report relays that some called for more internet freedom and
lower taxes.  Others complained at the weak economy, which is
forecast to sink into recession this year, and the decade-high
inflation of 7.7%, the report discloses.

Many said they were marching because of the Petrobras scandal,
which has seen 57 politicians, including former president Fernando
Collor de Mello, investigated for kick-backs worth at least $3
billion (GBP2.03 billion), the report notes.  Rousseff is not
under investigation but as a former chair of Petrobras during the
period when much of the corruption took place, she has struggled
to avoid being tainted by a scandal that has implicated allies and
opponents alike, the report says.

Although all the major parties have been dragged into the mire,
most of those implicated are from the ruling coalition and the
demonstrators were collecting signatures calling for the
impeachment of President Rousseff, the report relates.

Calls for a military coup were less evident at the bigger rallies
in Sao Paulo and Brasilia. Sunday's protests were the biggest in
Brazil since 2013, but the profile and politics of the
participants were very different and they passed more peacefully,
the report discloses.  The Confederations Cup demonstrations two
years ago had their origins in a campaign to secure free public
transport and spread rapidly particularly among the young, via
social networks after police violence inflamed public opinion, the
report relays.  The latest wave of protests, however, is from an
older, whiter, more affluent demographic, following widespread
advance coverage by the mainstream media, the report notes.

Anticipating this, the Workers Party organized a rally in support
of the government and state control of Petrobras, but there were
less than a thousand people at their main demonstration in central
Rio, the report adds.

COMPANHIA DE SANEAMENTO: Ratings Downgrade Risk Higher, Fitch Says
Companhia de Saneamento Basico do Estado de Sao Paulo's (Sabesp)
ratings remain under pressure and a downgrade is increasingly
likely within the next two months if a rebound in the reservoirs
levels do not occur, according to Fitch Ratings. The company's
most important water reservoirs are at concerning low levels at 15
% as of March 16, 2015, with limited improvement since November
2014, when the reservoir levels were at 8.8%. Risks of the
government implementing further water supply restrictions have
increased materially and heighten uncertainties regarding the
company's ability to provide full service and sustain adequate
operating cash flow generation in 2015.

Fitch estimates that Sabesp's EBITDA may decrease up to 40% in
2015 to around BRL2.5 billion from BRL4 billion in 2013 should
Sabesp's main reservoir water levels not recover significantly
within the next five to six weeks. Operating cashflow at this
level will result in its net leverage increasing to 3.8x in 2015,
almost double compared to the 2012-2013 average of 2.0x, which may
lead to a rating downgrade. Fitch initially expected Sabesp would
delever to a net leverage ratio below 2.3x by 2015. Sapesp's net
leverage should be in the range of 3.0x-3.3x in 2014. During the
latest 12 months (LTM) ended September 2014, Sabesp's cash flow
from operations (CFFO) was BRL2.1 billion, not enough to cover
capex of BRL1.9 billion and dividends of BRL467 million, leading
to a negative free cash flow (FCF) of BRL419 million.

Fitch believes Sabesp has adequate liquidity despite a potential
operating cash flow loss in 2015. Sabesp's cash on hands was
robust at BRL1.9 billion in September 2014, which favorably
compares to BRL712 million of short-term debt and corresponds to a
ratio cash/short-term debt of 2.6x. Debt maturing through December
2015 is BRL1.3 billion. Fitch also considers Sabesp's positive
track record of accessing local capital market. Fitch would
consider it positive if Sabesp implemented measures to protect its
liquidity by reducing its capex plan until operational cash flow
normalizes. Sabesp's average capex for the period of 2013 and LTM
September 2014 was BRL2.6 billion.

The Cantareira water supply system, which is Sabesp's most
important, is facing the most critical conditions despite an
increase in water levels during the last few weeks. On March 16,
2015, this system had only stored 15% of its total capacity. This
figure includes 29 percentage points (p.p.) due to the use of two
technical (contingent) water reserves which had been assessed in
2014 when the system was at critical levels. The Cantareira
currently supplies 5.3 million consumers (21% of total). On the
same date, the second most important water supply system, Alto
Tiete, currently serves 4.5 million consumers, and was at 21.8% of
its storage capacity. Fitch estimates these reservoirs need to end
the rainy season with water levels at around 30% of capacity for
the company to be able to meet its regular customers demand.

Fitch believes Sabesp's main reservoirs are unlikely to recover by
the end of the rainy season, which is around mid-April.
Historically, the Cantareira and Alto Tiete systems have decreased
by 27 p.p. on average during the period from May to November on
average over the last five years. The lack of a satisfactory
recovery of Sabesp's main reservoirs by the end of the rainy
season implies that its water supply should significantly
deteriorate from May to November, the period in which rainfall is
usually significantly lower, i.e. the dry season.

Fitch's believes that a potential tariff increase would not be
enough to offset this weaker scenario. The company has limited
room to offset the pressure on its FCF generation through costs
reduction and, even lower ability to reduce capital expenditures
as it also continues to invest to improve operations and expand
capacity. Sabesp's initiatives to limit the operating impacts of
the current drought conditions on its activities are positive, but
it will not likely be sufficient to avoid a deterioration of its
credit profile. The company is enhancing reservoir
interconnections for the supply of the Metropolitan Region of Sao
Paulo, which by May 2015, should provide additional volumes of
treated water available for the population. Sabesp has also
expanded incentives for its customers to reduce water consumption.
These initiatives should partially alleviate the pressure over the
company's water supply during the next few quarters.

Fitch currently rates Sabesp as follows:

-- Long-term foreign currency Issuer Default Rating (IDR) 'BB+';
-- Long-term local currency IDR 'BB+';
-- Long-term national rating 'AA(bra)';
-- Senior unsecured notes due in 2016 and 2020 'BB+'.

The Rating Outlook is Negative.

SETE BRASIL: S&P Lowers Rating to 'B-' & Remains on Watch Neg.
Standard & Poor's Ratings Services lowered its global scale rating
on Sete Brasil Participacoes S.A. (Sete) to 'B-' from 'BB-'.  At
the same time, S&P lowered its national scale rating on the
company and on its R$1.85 billion debentures to 'brB-' from
'brA-'.  The ratings remain on CreditWatch negative, where S&P
placed them on Feb. 13, 2015.

The downgrade reflects Sete's difficulty in securing long-term
financing for each of its special purpose entities.  This, in
turn, further pressures the company's liquidity, and weakens its
creditworthiness and delays the drilling vessels' construction.
The banks have held off financing due to their greater scrutiny
and more restrictive conditions to finance Petroleo Brasileiro
S.A. -- Petrobras' (BBB-/Stable/--) suppliers, such as Sete, in
light of the ongoing corruption investigations.

Although Sete's ownership structure enhances its financial
flexibility, S&P believes that the uncertainties in securing long-
term financing have increased significantly.  Therefore, the
company may need to adjust its business model and existing
contractual base, which could reduce Sete's cash-flow generation
in the longer term.

S&P could further downgrade the company if the prospects for long-
term financing don't improve during the next three months or if
S&P observes cancellations of the drilling vessels' contracts that
could reduce the bridge lenders' incentives to rollover their
loans.  S&P could assign a stable outlook if Sete secures long-
term financing during the next three months, enabling the company
company to maintain its current business plan.

C A Y M A N  I S L A N D S

DELTA SPV2: Shareholders' Final Meeting Set for March 25
The shareholders of Delta SPV2 Limited will hold their final
meeting on March 25, 2015, at 1:00 p.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Peter Goulden
          Mourant Ozannes Cayman Liquidators Limited
          94 Solaris Avenue Camana Bay
          P.O. Box 1348 Grand Cayman KY1-1108
          Cayman Islands

DODECANESE LIMITED: Members' Final Meeting Set for March 31
The members of Dodecanese Limited will hold their final meeting on
March 31, 2015, to receive 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

HIGHLAND SOLA: Shareholder to Hear Wind-Up Report on March 31
The sole shareholder of Highland Sola Fund Ltd will hear on
March 31, 2015, at 10:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The company's liquidator is:

          Solus Alternative Asset Management LP
          c/o Bradley Kruger
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949 9877

LIONGATE LIQUID: Shareholders' Final Meeting Set for March 25
The shareholders of Liongate Liquid Opportunites Fund will hold
their final meeting on March 25, 2015, at 9:00 a.m., to receive
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Peter Goulden
          Mourant Ozannes Cayman Liquidators Limited
          94 Solaris Avenue Camana Bay
          P.O. Box 1348 Grand Cayman KY1-1108
          Cayman Islands


Standard & Poor's Ratings Services affirmed its 'BB' corporate
credit and issue-level ratings on Colombia Telecomunicaciones S.A.
E.S.P. (Coltel).  S&P also assigned its 'B' issue-level rating to
the proposed, optionally deferrable, and subordinated hybrid
capital securities.  The outlook on the corporate credit rating
remains stable.

The affirmation reflects S&P's view that despite the company's
weaker financial ratios as a result of the recognition of
Patrimonio Autonomo de Activos y Pasivos de Telecom (PARAPAT)
payments as debt, S&P believes Coltel's operations and finances
will remain the same, given that the recognition is just an
accounting issue.

The 'BB' rating reflects S&P's expectation that the company will
maintain its position as the second-largest mobile player and the
third-largest fixed-line operator in the Colombian market, its
strong brand recognition, and efficient operations.  It also
recognizes the company's narrow geographic diversification
compared with higher-rated global peers because it only operates
in Colombia.

The company's wireless segment revenues continue to benefit from
subscriber growth and increased data services.  S&P expects
Coltel's fixed-line segment to remain pressured by weak secular
trends, especially in residential voice usage.  However, higher
broadband and pay TV adoption will mitigate the lower revenue from
the fixed-line segment.

COLOMBIA TELECOMUNICACIONES: Fitch Rates Prop. Notes Issuance 'B+'
Fitch Ratings has assigned a Long-term rating of 'B+' to Colombia
Telecomunicaciones S.A. E.S.P.'s (Coltel) proposed perpetual
subordinated (hybrid) notes issuance. Coltel expects to use the
proceeds from the issuance to refinance existing financial debt.
The hybrid notes will be deeply subordinated to senior and
unsecured debt, and rank senior only to Colombia
Telecomunicaciones' ordinary shares.

The proposed notes will be rated 'B+', two notches below Colombia
Telecomunicaciones' 'BB' IDR, which reflects the securities'
increased loss severity and heightened risk of nonperformance
relative to the senior obligations. The hybrid securities will
receive a 50% equity credit given the ability of the company to
defer interest coupons and compound arrears of interest at the
rate of interest on the notes. The notes have a non-call period of
at least five years and will reset for an interest rate equal to
the relevant Five Year Swap after the initial non-call period plus
the initial margin and step up.


Coltel's ratings reflect its enhanced competitive position from
the merger of the fixed and mobile operations. The ratings also
positively reflect the reduced payment obligation to Patrimonio
Autonomo de Activos y Pasivos de Telecom (Parapat), and increased
financial flexibility through the restructuring of the terms of
the operating contract in 2012. Implied support from the parent,
Telefonica SA (rated 'BBB+' by Fitch), which owns 70% of the
company, is also incorporated in the ratings given its
strategic/operational importance to the parent's Latin America

The ratings are constrained by a high level of competition, the
projected weak cash generation in the short- to medium-term due to
high capex for network upgrades, and its weak liquidity profile.
Also, the existing Parapat-related obligation continues to
pressure the company's cash flows and leverage. With the adoption
of International Financial Reporting Standards (IFRS) the Parapat
obligation will be register in the company's balance sheet as
debt, which will increase leverage and drive the company's equity
into negative territory. The company plans to address this
situation by the issuance of the hybrid note and the recognition
as equity of asset reappraisal and fiscal credits.

Short-term Increase in Leverage: Coltel's financial leverage is
likely to increase in 2015 given its high capex plan, weak EBITDAR
growth and the incremental balance debt from the Parapat
obligation. Reflecting the present value of this commitment in the
balance sheet the company's debt-to-EBITDAR ratio would increase
to above 5x from 2015 and remain at this level in the coming
years. Fitch considers Coltel's liability to Parapat under the new
restructuring conditions as a softer debt for leverage analysis
purposes given the potential flexibility in payments under the
stress scenario. Parapat is a long-term financial obligation
ending in 2028.

High Capex; Negative Free Cash Flow (FCF): The company has
embarked on a sizable capital expenditure program from 2014 for
its mobile/fixed network upgrades, mainly including 4G, as well as
the license payments. Coltel expects to invest a total of COP3.600
billion during 2014 - 2017, which should be primarily funded by
cash flow from operations (CFFO), which is expected to cover about
90% of investments during the period; Fitch expects the company's
FCF to remain slightly negative. Given the plans for significant
investment, shareholder distributions are not likely during 2014-
2017. The company's capex and opex are not exposed to the
volatility in exchange rate.

Coltel's 2014 EBITDA COP1.400 billion an increase of 5% from the
2013 level of COP1.291 billion, mainly due to a better revenue
performance and the maintenance of the EBITDA margin despite
increase in payments to Parapat amid the decreasing trend in ARPU
as a result of competitive pressures. The Parapat payments
accounted for approximately 7% of revenues in 2014 and 10% from
2015 thereafter, which is an increase from 3% in 2013. In
addition, the merger between Tigo and UNE could add more pressure
to the competitive landscape. As a result, Coltel's EBITDA is
projected to gradually fall below 30% over the medium term from
31% in 2014.

Weak Liquidity: Coltel's liquidity position is weak as it has
increased its short-term debt to fund its capex and the license
payment obligations. This, along with current debt maturities,
resulted in the short-term debt level reaching COP352 billion,
compared to its cash balance of COP80 billion as of December 31st,
2014. The proceeds of the perpetual note will be used entirety to
refinance its existing debt. The company has been able to roll
over its short-term debt with available credit facilities and
CFFO. The debt at the end of 2014 was COP4.060 billion.


Fitch's key assumptions within our rating case for the issuer
-- Annual revenue growth of 2.7% from 2015 - 2018
-- EBITDA margins declining to around 30% in 2015 and 28% for
    2017 due to competitive pressures and lower ARPU.
-- Perpetual note proposed issuance of approximately $500 million
   with equity credit of 50% and which proceeds will be entirely
   used for refinancing existing debt.
-- Parapat obligation of COP3.973 billion.
-- Capex to be funded primarily from internally generated funds.
   Fitch expects 2015 capex of 18% of revenues and 16% for the
   coming years.


Factors that could trigger a negative rating action include:
-- Increased competitive pressures leading to erosion in its
    market positions and operating margins;

-- Higher-than-expected capex leading to weak cash generation
    over the medium- to long-term, resulting in its on-adjusted
    net leverage including equity credit failing to decrease below
    5x on a sustained basis. In addition, failure to improve its
    liquidity could pressure the ratings. Fitch changed its
    ratings sensitivities to include the equity credit from the
    proposed hybrid instrument.

Credit quality factors that could lead to a positive rating action

-- Positive rating action is unlikely in the short- to medium-
    term given the expected increase in leverage due to high
    capex. Factors that could potentially lead to a positive
    rating action include positive FCF generation which enables a
    reduction in leverage towards 3.5x on a sustained basis.

D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: 1Q Electricity Subsidy Down RD$2.9 Billion
Dominican Today reports that the electricity subsidy in the first
quarter was RD$2.9 billion lower than the same period last year
due to falling oil prices, but the Electricity Superintendence
(SIE) charged customers as much as 10 percent higher still.

SIE data from January to March 2014 on transfers to the
Electricity Rate Stabilization Fund reached RD$3.7 billion,
compared with the same 2015 period, of RD$854 milllion, according
to Dominican Today.

In January the subsidy was R$624.2 million; RD$289.7 million in
February, while for March, the government didn't have to allocate
any subsidy since the SIE reported a RD$59.71 million windfall, on
the difference between the cost that should be applied (on the oil
index and other variables) and what's billed to customers, the
report notes.

In that same month last year the subsidy was RD$109 billion, the
report adds.


JAMAICA: Consumer Prices Down 1.1%
RJR News reports that the Statistical Institute of Jamaica
(Statin) is reporting that consumer prices are down 1.1% for the
year so far.

Prices fell by 0.7% in February, following a 0.5% decline in
January, according to RJR News.

Last month's decline in prices resulted mainly from lower costs
for electricity, water and food, the report notes.

The declines offset increases in the earnings of carpenters,
masons, plumbers, painters and electricians, the report relates.

RJR News says that consumer prices have declined in each of the
last four months, mainly due to the lower price of oil.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 23, 2015, 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'.


CORPORACION PESQUERA: Fitch Ups Foreign Currency IDR to 'BB-'
Fitch Ratings has upgraded the ratings for Copeinca AS and its
wholly-owned subsidiary Corporacion Pesquera Inca SAC as follows:
Copeinca AS

-- Foreign Currency Issuer Default Rating (IDR) to 'BB-'from
    'B+'; Outlook to Negative from Stable.

Corporacion Pesquera Inca SAC

-- Foreign Currency IDR to 'BB-' from 'B+'; Outlook to Negative
    from Stable;

-- USD250 million senior unsecured notes to 'BB-' from 'B+/RR4'.


Fitch has upgraded the ratings of Copeinca AS and its wholly-owned
subsidiary Corporacion Pesquera Inca SAC (collectively, Copeinca)
due to the integration and strategic ties with its parent company,
China Fishery Group Limited (CFG) (rated 'BB-' with a Negative
Outlook by Fitch), which is in process to redeeming Corporacion
Pesquera Inca SAC's senior unsecured notes.

The upgrade to 'BB-' incorporates the strong parent subsidiary
linkage between Copeinca and CFG (rated 'BB-'; Negative Outlook)
based on its strong operational and strategic ties. Copeinca is
fully-owned by CFG and represents about 41% of total CFG EBITDA as
of FYE14.

Fitch will withdraw Copeinca's ratings and will not provide any
more coverage on the company once the bond is fully repaid. Fitch
will continue to maintain the ratings of CFG.

PERU: Keeps 3.25% Rate to Bolster Sol Amid Increased Volatility
John Quigley at Bloomberg News reports that Peru kept borrowing
costs unchanged for a second month in a bid to bolster the local
currency amid increased volatility in financial and currency

The board, led by President Julio Velarde, held the key rate at
3.25 percent, as forecast by 13 of 20 economists surveyed by
Bloomberg.  Seven expected a cut to 3 percent.  Policy makers
cited growth rates below potential, slowing inflation and currency
volatility as reasons for the pause, according to Bloomberg News.

"The most recent indicators for economic output and consumer and
business confidence continue to show a weak economic cycle," the
central bank's board said in a statement on its website, Bloomberg
News relays.

Bloomberg News discloses that Policy makers eased reserve
requirements on March 1 for the 10th time in the last year as the
economy expands at its slowest pace since 2009.  While Peru has
the lowest inflation among major Latin America economies, interest
rates are at a four-year low and further cuts could fuel
additional sol weakness, which the central bank is fighting in the
currency market, said Mario Guerrero, an economist at the local
unit of Bank of Nova Scotia, Bloomberg News notes.

Bloomberg News relays that the sol has declined 9.5 percent in the
last year -- its worst 12-month decline against the dollar since
2009 -- as expectations the U.S. is getting closer to raising
interest rates boosts demand for the greenback.

In trading Thursday, March 12, the currency weakened 0.1 percent
to 3.0985 per dollar, says the report.

                         Confidence, Spending

Bloomberg News notes that the central bank has sold $1.2 billion
in U.S. dollars in the currency market this month to bolster the
sol.  A weaker sol makes it more expensive for Peruvians to pay
back U.S. dollar loans using soles and boosts the cost of imported
goods, Bloomberg News relays.

Peru's annual inflation rate fell to 2.77 percent in February,
after four months above the top of the central bank's 1 percent to
3 percent target range, Bloomberg News discloses.

Bloomberg News relays that the falling exports, currency weakness
and slower economic growth have made companies and consumers
cautious about spending, said Cesar Alvarez, head of economy and
finance at the Centrum Catolica business school in Lima.  Public
investment is being held back by delays at the local level, which
will oblige the monetary authority to keep stimulating demand, Mr.
Alvarez said, Bloomberg News notes.

Exports dropped in January for an 11th straight month on declines
in copper, gold and fishmeal revenue. Gross domestic product rose
1 percent in the fourth quarter, the slowest pace in five years,
Bloomberg News relates.

"We'll keep growing at the same rate as last year or even lower
unless the central bank takes action to stimulate consumer demand
and investment," Mr. Alvarez told Bloomberg News by phone.

Fifteen of 19 indicators of business sentiment fell in the central
bank's latest monthly survey published March 6, including the
outlook for sales, employment and economic growth, Bloomberg News
notes.  Analysts cut their 2015 growth forecast to 3.9 percent
from 4.5 percent two months ago, the survey showed, Bloomberg News

Policy makers lowered the benchmark rate at their January meeting,
their third reduction in the last year, says the report.

The board is ready to consider additional easing measures if
needed, it said in the statement obtained by Bloomberg News.

While there is room for a quarter-point cut in the overnight rate,
some members of the central bank board see lowering reserve
requirements as a more effective way of stimulating economic
activity, UBS AG said in a March 6 report to clients, Bloomberg
News adds.

T R I N I D A D  &  T O B A G O

TRINIDAD & TOBAGO: Prestige Head Bats for Caribbean Workers
Verne Burnett at Trinidad and Tobago Newsday reports that Charles
Pashley, Managing Director of Prestige Holdings Limited, suggested
a gradual opening of the labor market to Caricom nationals as well
as a gradual reduction in the number of people employed in
government make-work programs CEPEP and URP to ease a critical
shortage of labor affecting local business for almost ten years.

Mr. Pashley made the comment while addressing a roundtable
discussion, "Labour Challenges and its effect on business" at the
headquarters of the TT Chamber of Industry and Commerce in

Mr. Pashley said, what is necessary is to open the labor market,
according to Trinidad and Tobago Newsday.  "First of all opening
the market for our Caribbean representatives, gradually reducing
the whole CEPEP and URP social programs" the report quoted Mr.
Pashley as saying. "We need 650 people, that's roughly about TT$25
to TT$30 million in costs every year. So right now if we go to any
one of the social programs and take 650 people and put them in our
stores, immediately this country saves $30 million."

The report relays that Mr. Pashley added if Prestige Holdings were
able to get the 650 workers it needs, "our sales will go up by a
minimum of five percent.  That is TT$45 million.  VAT on TT$45
million is TT$7 million.  So the government saves TT$30 million in

"They get an additional TT$7 million in VAT and then our
corporation profit is about TT$10 million before tax so the
Government gets another 25 percent, therefore they get about
TT$2.5 million there.

"So in essence if we were able to get our 650 people from these
social programs, the country will benefit in excess of $40

"We are one company, so if you multiply that 20 fold for Trinidad
and Tobago you're talking about TT$800,000 to TT$1 billion in
potential savings and benefits to the economy."

Prestige Holdings operates Kentucky Fried Chicken as well as Thank
God It's Friday (TGIF), Pizza Hut and Subway franchises in this
country, the report discloses.  Mr. Pashley said the company
operates 110 restaurants locally and ideally it should have 2,700
workers and 505 managers, the report relates.  Mr. Pashley added
that it needs between 12-65 workers to open a store, depending on
the type of restaurant. According to Pashley, Prestige currently
has a shortfall of 650 workers, the report notes.

"When you have a store operating that's supposed to operate with
12 people and four turn out, then it is a real challenge to
service our customers.   We actually hire, recruit, train, orient
between 75- 100 people every week.  Every single week in Trinidad
and Tobago our human resource teams hire close to 100 people due
to the turnover challenge we have in the organization," Mr.
Pashley said, the report relays.

"Now if there is limited labor supply, what is going to happen
when we try to open more restaurants or anybody tries to expand
manufacturing facilities? Naturally wage structures are going to
change and we create more pressure on the inflation rate in the
country," Mr. Pashley added, notes the report.

In addition to the shortage in numbers, Mr. Pashley also
complained about the quality of the people available for
employment, saying that more than 70 percent of them do not meet
the company's minimum requirements which is three O'levels, the
report points out.

To try to get the workers it needs, Mr. Pashley said the company
lowered the entry requirement to a secondary completion
certificate and has introduced incentives for the employees, the
report relays.  Mr. Pashley said the increase in the minimum wage
did not contribute to any increase in the numbers of workers
available to the company, the report adds.


Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades.  Prices
for actual trades are probably different.  Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind.  It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.

Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

Submissions about insolvency-related conferences are encouraged.
Send announcements to


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A.
Chapman, Editors.

Copyright 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

                   * * * End of Transmission * * *