/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150406.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, April 6, 2015, Vol. 16, No. 066 Headlines A R G E N T I N A ARGENTINA: S&P Keeps 'SD/SD' FC Sovereign Credit Rating CIMA RENTA: Moody's Confirms Global Scale Rating of 'B-bf' COMPANIA DE TRANSPORTE: S&P Affirms 'CCC-' Rating; Outlook Neg. FIDEICOMISO FINANCIERO XII: Moody's Rates 2 Classes of Secs at B1 B A H A M A S COLUMBUS INT'L: Digicel Praises Barbados FTC's Decision on Merger B O L I V I A BISA LEASING: Moody's Rates US$40MM Sr. Debt Program at (P)Ba2 SEGUROS ILLIMANI: Moody's Confirms 'Caa2/Ba2.bo' IFS Ratings B R A Z I L BRAZIL: Drought Could Last 30 More Years, Meteorologist Says CAMARGO CORREA: S&P Lowers CCR to 'BB-'; Outlook Negative ECORODOVIAS INFRAESTRUTURA: Moody's Rates BRL600M Debenture at Ba1 OAS S.A.: Fitch Lowers Issuer Default Rating to 'D' C A Y M A N I S L A N D S AQUARIUS LTD: Creditors' Proofs of Debt Due April 30 ARDON MAROON: Court Enters Wind-Up Order ASP LAKESIDE: Commences Liquidation Proceedings BRIGHTIME VENTURES: Creditors' Proofs of Debt Due April 30 CLARITUS F SPC I: Creditors' Proofs of Debt Due April 20 CLARITUS F SPC II: Creditors' Proofs of Debt Due April 20 CLARITUS M SPC I: Creditors' Proofs of Debt Due April 20 E.WORLD (HOLDINGS): Commences Liquidation Proceedings GUANAY FINANCE: Fitch Cuts $450MM Fixed-Rate Notes Rating to 'BB' HCSP SPC: Creditors' Proofs of Debt Due April 20 INVEST AD: Commences Liquidation Proceedings MAGHREB VICTORY: Creditors' Proofs of Debt Due April 28 NICHE AVENUE: Commences Liquidation Proceedings SKYDIVE COSTA: Placed Under Voluntary Wind-Up YUKON RE: Placed Under Voluntary Wind-Up C H I L E LATAM AIRLINES: Moody's Assigns 'Ba2' CFR, Outlook Stable LATAM AIRLINES: Fitch Lowers IDR to 'BB-'; Outlook Stable C O L U M B I A PACIFIC RUBIALES: S&P Lowers CCR to 'BB'; Outlook Negative J A M A I C A PETCOM: Jamaica Government Plans to Sell Firm T R I N I D A D & T O B A G O TRINIDAD & TOBAGO: Central Bank Sells US$60 Million V E N E Z U E L A VENEZUELA: Dismisses Miami Herald Report on PetroCaribe X X X X X X X X X * BOND PRICING: For the Week From March 23 to March 27, 2015 - - - - - ================= A R G E N T I N A ================= ARGENTINA: S&P Keeps 'SD/SD' FC Sovereign Credit Rating ------------------------------------------------------- Standard & Poor's Ratings Services kept its unsolicited foreign currency sovereign credit ratings on the Republic of Argentina unchanged at 'SD/SD' and affirmed its unsolicited 'CCC+/C' local currency sovereign credit ratings. The outlook on the long-term local currency rating remains negative. S&P also affirmed its transfer and convertibility (T&C) assessment on the sovereign at 'CCC-' and its 'raB+' national scale rating with a negative outlook. RATIONALE S&P's selective default ('SD') foreign currency ratings on Argentina stem from its nonpayment of part of its external debt. On July 30, 2014, Argentina failed to make a $539 million interest payment on its discount bonds due in December 2033. Since then, Argentina has not been able to service any of its external bonds under foreign law. The foreign currency ratings will remain at 'SD' until Argentina cures the default, either through payment, exchange, or other settlement. If and when that happens, S&P will reassess the sovereign's general credit standing, most likely raising the foreign currency rating to the 'CCC' or low 'B' categories. S&P do not expect Argentina to cure the foreign currency default before the October 2015 presidential election. The winner of that election will face a weak economy, fiscal and monetary rigidities, and diminished external liquidity brought on by current policies and lack of transparency. Restoring access to international markets through curing the default will be an important objective to stabilize the economy. Sergio Massa (Frente Renovador), Daniel Scioli (Frente para la Victoria), and Mauricio Macri (Propuesta Republicana) are the leading candidates. S&P expects a close election with none of the candidates obtaining more than one-third of the votes in the first round. The victor in the second round will need to establish a working relationship with congress quickly to assure success with an economic adjustment program. The next government will have to deal with distorted relative prices (tariffs, exchange rate, and administered prices), a high fiscal deficit projected at 4.4% of GDP in 2015, rampant observed inflation, low liquid foreign reserves, a dual exchange rate, external debt in default, and creditor conflict. A more transparent, credible, and predictable economic framework together with measures aimed at easing capital controls and containing the fiscal deficit would most likely attract external investments and, thus, improve medium-term growth prospects. S&P projects that real GDP will grow 0.5% in 2015, similar to the 2014 growth numbers recently published by statistics institute INDEC. S&P expects growth to accelerate in 2016-2017 with the new government in place and assuming some confidence-enhancing changes in policy. Economic uncertainty stemming largely from growing regulations, restricted access to foreign currency for imports, and price controls, together with several years of high inflation, have hurt confidence, depressed investment, and stanched economic growth. Private economists estimate that the real effective exchange rate has appreciated about 28% since 2011. Despite import restrictions, S&P expects Argentina's 2015 current account to remain in deficit, around 1% of GDP. Lower international oil prices will help moderate imports, but lower soy prices will result in lower exports, despite an expected record crop. S&P estimates that gross external financing needs (including amortization requirements of debt currently in default) will remain close to 100% of current account receipts (CARs) and usable reserves over 2015-2017, while external debt net of public- and financial-sector external assets will average 63% of CARs in the same period. Restrictions on imports, unpaid imports, a peso/yuan swap with the People's Bank of China, and credits from international banks, together with local market issuance in dollars, helped stem the loss of international reserves in 2014. Reserve levels increased slightly to $31.4 billion at the end of March 2015 from $30.6 billion as of year-end 2013. Still, liquid reserves would be much lower when discounting items such as banks' reserve requirements, unpaid imports, and special drawing rights (foreign exchange reserve assets ceded by the International Monetary Fund to its country members). Principal on the government's US$6.7 billion Boden external bond and debt service on its US$1.2 billion BONAR bond are due this year. Also, Argentina owes US$2.3 billion of interest on its defaulted par and discount bonds in 2015. Other subnational governments, such as the City and Province of Buenos Aires, are also facing large external debt service requirements in 2015. Limited external liquidity will be a major constraint, given that S&P is not expecting the current government to reach an agreement with holdout creditors, cure the default, and consequently access external markets. Still, state-owned energy and oil company YPF and the City of Buenos Aires were able to issue international bonds in February for US$500 million each. The government's reliance on central bank deficit financing in recent years has limited its ability to conduct monetary policy and contributed to high observed inflation. Inflation could reach about 25%-30% in 2015, which, together with the strengthening of the dollar and the depreciation of currencies of trading partners (such as Brazil), could put additional pressure on the peso's real effective exchange rate in 2015. Net general government debt is estimated at 39% of GDP at year-end 2014, but S&P projects the ratio to increase to 43% as of year-end 2015 given a wider projected deficit and the effect of expected peso depreciation on the stock of foreign currency government debt, which is two-thirds of the total. General government interest over general government revenues is estimated to remain slightly above 5% in 2015-2017. However, about 60% of this indebtedness pertains to debt whose creditors are other government agencies outside the general government consolidation parameter, significantly reducing its market rollover risk. S&P's 'CCC+/C' local currency ratings reflect its view of the constraints inherent on total government finance arising from an external debt default. Although all local currency debt is subject to local law, S&P cannot rule out the risks the external debt default poses to macro stability. S&P's 'CCC-' T&C assessment reflects the risk that the government could further tighten its foreign exchange regime to the extent that it impairs the ability of the private sector to service its foreign currency debt. The government already uses a variety of exchange controls, and there is a wide disparity between the official and parallel market exchange rates. The official exchange rate is heavily managed by the central bank, while the parallel exchange rate moves almost freely, reflecting supply and demand. S&P expects foreign exchange restrictions and controls to continue through 2015. To preserve reserve levels, the central bank has imposed strict controls to access foreign currency. Importers have to follow a series of bureaucratic steps to receive authorization to import, and delays are common. Debtors with foreign exchange debt due in the external markets must also apply for central bank authorization in order to receive the necessary dollars to meet their debt service. OUTLOOK The negative outlook on the local currency rating reflects weakening economic conditions characterized by high inflation, widening fiscal and current account deficits, and ancillary risks posed by low reserve levels and limited access to funding in a context of increasing funding needs. Should the government's economy and fiscal accounts worsen beyond S&P's expectations, it could lower the local currency rating. On the other hand, policies more conducive to macro stability could lead to the local currency rating stabilizing and set the conditions for a cure of the foreign currency default. In accordance with S&P's relevant policies and procedures, the Rating Committee was composed of analysts that are qualified to vote in the committee, with sufficient experience to convey the appropriate level of knowledge and understanding of the methodology applicable. At the onset of the committee, the chair confirmed that the information provided to the Rating Committee by the primary analyst had been distributed in a timely manner and was sufficient for Committee members to make an informed decision. After the primary analyst gave opening remarks and explained the recommendation, the Committee discussed key rating factors and critical issues in accordance with the relevant criteria. Qualitative and quantitative risk factors were considered and discussed, looking at track-record and forecasts. The committee agreed that the key rating factors were unchanged. The chair ensured every voting member was given the opportunity to articulate his/her opinion. The chair or designee reviewed the draft report to ensure consistency with the Committee decision. The views and the decision of the rating committee are summarized in the above rationale and outlook. The weighting of all rating factors is described in the methodology used in this rating action. RATINGS LIST Ratings Affirmed Argentina (Republic of) Sovereign Credit Rating Foreign Currency |U SD/--/SD Local Currency |U CCC+/Negative/C Argentina National Scale |U raB+/Negative/-- Transfer & Convertibility Assessment Local Currency |U CCC- U Unsolicited ratings. CIMA RENTA: Moody's Confirms Global Scale Rating of 'B-bf' ---------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo confirmed the bond fund ratings of Cima Renta Fija Argentina Plus and maintained the review for downgrade of the ratings of Convexity Renta Fija Argentina. Both funds have been under review for downgrade since last December due to the deterioration of the average credit quality of their portfolios. The confirmation of Cima Renta Fija Argentina Plus bond fund ratings follows the improvement of the adjusted average credit quality of the fund and the expectation that it will remain at this level. Over the coming months, Moody's will monitor and assess the trend in weighted average credit quality of Convexity Renta Fija Argentina which has not shown a similar level of consistent improvement and therefore remains under review. Moody's confirmed the global scale rating and national scale rating of the following bond fund: CIMA Renta Fija Argentina Plus FCI -- Global scale rating B-bf -- National scale ratings to A-bf.ar Additionally Moody's maintained on review for downgrade the global scale rating and national scale rating of the following bond fund: Convexity Renta Fija Argentina FCI -- Global scale rating B-bf (RUR DNG) -- National scale ratings to A-bf.ar (RUR DNG) The rating confirmation at current level of B-bf in global scale and A-bf.ar in National Scale of the Cima Renta Fija Argentina Plus follows the improvement of the credit quality of the fund in the last quarter, after being placed under review for possible downgrade last December. Moody's expects the asset managers to keep the fund's credit quality in line with the confirmed rating level. The continued review for downgrade of the Convexity Renta Fija Argentina reflects a slower and more subtle improvement of the portfolio's credit profile in the last two months. Moody's will continue monitoring this trend in the coming months. COMPANIA DE TRANSPORTE: S&P Affirms 'CCC-' Rating; Outlook Neg. --------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'CCC-' foreign and local currency ratings on Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. (TRANSENER). The outlook remains negative. S&P's ratings on TRANSENER reflect these factors: -- S&P's 'CCC-' T&C assessment for Argentina and the lack of the company's strengths in order for it to be rated above the T&C in foreign currency. -- Under S&P's base-case scenario that includes potential T&C controls in the short to intermediate term, TRANSENER won't be able to repay all the foreign currency debt in Argentine pesos. Therefore, the T&C assessment also constrains the local currency rating on the company. -- S&P's "vulnerable" business risk and "highly leveraged" financial profile assessments for the company. FIDEICOMISO FINANCIERO XII: Moody's Rates 2 Classes of Secs at B1 ----------------------------------------------------------------- Moody's Latin America Agente de CalificaciOn de Riesgo rates the new structure of Fideicomiso Financiero ICBC Personales XII, a transaction that will be issued by TMF Trust (Argentina) S.A. - acting solely in its capacity as Issuer and Trustee. The securities for this transaction have not yet been placed in the market. Also, the transaction is pending approval from the "Comision Nacional de Valores". If any assumption or factor Moody's considers when assigning the ratings changes before closing, Moody's ratings may also change. Moody's has withdrawn the ratings of the Certificates tranche because the liability structure of the transaction has changed before issuance and as a result the rating of Caa1 (sf) / Ba1.ar (sf) for the Certificates tranche will change. Moody's has assigned new ratings to these tranches as follows. -- ARS 178,795,666 in Class A Floating Rate Debt Securities of "Fideicomiso Financiero ICBC Personales XII", currently rated Aaa.ar (sf) (Argentine National Scale) and B1 (sf) (Global Scale, Local Currency) -- ARS 35,759,134 in Class B Floating Rate Debt Securities of "Fideicomiso Financiero ICBC Personales XII", currently rated Aaa.ar (sf) (Argentine National Scale) and B1 (sf) (Global Scale, Local Currency) -- ARS 23,839,422 in Certificates of "Fideicomiso Financiero ICBC Personales XII", assigned A3.ar (sf) (Argentine National Scale) and B3 (sf) (Global Scale, Local Currency) The rated securities are payable from the cash flow coming from the assets of the trust, which is an amortizing pool of 9,733 eligible personal loans denominated in Argentine pesos, with a fixed interest rate, originated by the Industrial and Commercial Bank of China (Argentina) S.A., in an aggregate amount of ARS 238,394,222. These personal loans are granted Industrial and Commercial Bank of China (Argentina) S.A. "ICBC (Argentina)" clients. The monthly loan installment is deducted directly from the borrower's bank account. Overall credit enhancement is comprised of 25% of subordination for the Class A Floating Rate Debt Securities and 10% for the Class B Floating Rate Debt Securities. In addition the transaction has various reserve funds and excess spread. Factors that would lead to an upgrade or downgrade of the rating: Factors that may lead to a downgrade of the ratings include an increase in delinquency levels beyond the level Moody's assumed when rating this transaction. Factors that may lead to an upgrade of the ratings include the building of credit enhancement over time due to the turbo sequential payment structure, when compared with the level of projected losses in the securitized pool. Moody's considered the credit enhancement provided in this transaction through the initial subordination levels for each rated class, as well as the historical performance of ICBC (Argentina)'s portfolio. In addition, Moody's considered factors common to consumer loans securitizations such as delinquencies, prepayments and losses; as well as specific factors related to the Argentine market, such as the probability of an increase in losses if there are changes in the macroeconomic scenario in Argentina. These factors were incorporated in a cash flow model in order to determine the expected loss for the rated securities. In assigning the rating to this transaction, Moody's assumed a lognormal distribution for defaults on the main pool with a mean of 9% and a coefficient of variation of 60%. Also, Moody's assumed a lognormal distribution for prepayments with a mean of 20% and a coefficient of variation of 60%. These assumptions are derived from the historical performance to date of ICBC (Argentina)'s pools. Servicer default was modeled by simulating the default of the ICBC (Argentina) as the servicer consistent with its current rating of B1/Aaa.ar. In the scenarios where the servicer defaults, Moody's assumed that the defaults on the pool would increase by 20 percentage points. The model results showed 0.01% expected loss for the Class A Floating Rate Debt Securities, 2.18% for the Class B Floating Rate Debt Securities and 9.45% for the Certificates. Finally, Moody's also evaluated the back-up servicing arrangements in the transaction. If ICBC (Argentina) is removed as servicer TMF Trust Company (Argentina) S.A. will be appointed as the back-up servicer. ============= B A H A M A S ============= COLUMBUS INT'L: Digicel Praises Barbados FTC's Decision on Merger ----------------------------------------------------------------- RJR News reports that Digicel Group Limited has welcomed the decision of the Barbados Fair Trading Commission (FTC) regarding the application for merger approval filed by Cable & Wireless Communications, and Flow's parent, Columbus International Inc. The Barbados FTC imposed 14 conditions compelling Cable & Wireless to, among other things, divest significant overlaps in fiber assets in Barbados to a third party or parties, to be approved by the Commission, according to Columbus International Inc. In a statement, Digicel said it regarded the FTC's decision as being important in terms of helping to prevent the creation of a Cable & Wireless monopoly in Barbados, in the markets for fixed voice and broadband internet, the report notes. Colm Delves, Digicel's Group CEO, praised the FTC for the diligent and comprehensive manner in which it said it conducted the merger analysis, the report adds. About Columbus International Columbus International Inc. is a privately held diversified telecommunications company based in Bahamas. The Company provides digital cable television, broadband Internet and digital landline telephony in Trinidad, Jamaica, Barbados, Grenada, St. Vincent & the Grenadines, St. Lucia and Curacao under the brand name Flow and in Antigua under the brand name Karib Cable. As reported in the Troubled Company Reporter-Latin America on Nov. 10, 2014, Standard & Poor's Ratings Services placed its 'B' corporate credit and issue-level ratings on Columbus International Inc. (Columbus) on CreditWatch with positive implications. ============= B O L I V I A ============= BISA LEASING: Moody's Rates US$40MM Sr. Debt Program at (P)Ba2 -------------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo assigned a (P)Ba2 global foreign-currency debt rating and a Aaa.bo national scale foreign-currency debt rating to Bisa Leasing's senior debt program of up to US$40 million (Programa de Emisiones de Bonos Bisa Leasing IV). Also, Moody's assigned a Ba2 global local- currency debt rating and a Aaa.bo national scale local-currency debt rating to Bisa Leasing S.A.'s expected issuance of Bs. 60 million under the program. Bisa Leasing's global debt ratings, both in foreign and local-currency were placed on review for downgrade on March 17, 2015. The following ratings were assigned to Bisa Leasing: US$ 40 million senior debt program: -- (P)Ba2 Global Foreign-Currency Debt Rating, on review for downgrade -- Aaa.bo Bolivian National Scale Foreign-Currency Debt Rating, stable outlook -- Bs. 60 million, First Expected Issuance under the program: -- Ba2 Global Local-Currency Debt Rating, on review for downgrade -- Aaa.bo Bolivian National Scale Local-Currency Debt Rating, stable outlook Moody's explained that the local-currency senior debt rating derives from Bisa Leasing's Ba2 global local currency corporate family rating. Moody's also noted that seniority was taken into consideration in the assignment of the debt ratings. Bisa Leasing's Ba2 corporate family rating derives from its b1 standalone credit assessment and incorporates two notches of uplift as a result of Moody's assumption of a very high probability of support from its parent, Banco Bisa (rated Ba2). Banco Bisa's global local-currency deposit rating, which acts as an anchor to determine support to be provided to its subsidiary, was placed on review for downgrade as a consequence of a change in Moody's bank rating methodology affecting the way Moody's assess the capacity of a government to provide support to a bank in the event of stress. The stand-alone credit profile of b1 reflects Bisa Leasing's monoline business structure and also the small and developing leasing market in Bolivia, which is highly competitive, adding pressure to the entity's profitability margins. It also reflects risks related to its funding structure, heavily reliant on bonds issuances and interbank deposits, which are sensitive to interest rate moves. Headquartered in La Paz, Bolivia, Bisa Leasing is the leading leasing company in the country, with assets of Bs. 351 million and shareholders' equity Bs. 55 million as of March 31, 2015. SEGUROS ILLIMANI: Moody's Confirms 'Caa2/Ba2.bo' IFS Ratings ------------------------------------------------------------ Moody's Latin America Agente de Calificacion de Riesgo, S.A. has confirmed Seguros Illimani S.A.'s Caa2 global local-currency insurance financial strength (IFS) rating and its Ba2.bo IFS rating on Bolivia's national scale. Both ratings now carry a stable outlook. Seguros Illimani S.A. is a privately-owned Bolivian property and casualty (P&C) insurer, focused primarily on mandatory automobile accident-liability insurance ("SOAT", for its Spanish acronym). Moody's said that the confirmation of Seguros Illimani's ratings reflects the ultimately limited financial impact on Seguros Illimani of the Bolivian insurance regulator's (APS) resolution (#774/2014), which originally alleged a USD 1.6 million loss reserve deficiency (amounting to approximately 45% of the insurer's capital), as compared with a final net loss of only USD 0.5 million on its 2014 audited financial statements, of which USD 0.3 million corresponds to the complete effect of the loss reserve deficiency write-down, according the company's management. At 2014 year-end, Seguros Illimani complied with regulatory solvency margins, even after considering the net loss reported during that year. APS also restricted the insurer from renewing its contract to service SOAT business in 2015, which in 2014 accounted for approximately 77% of its premium volume. Although this development will cause the company's revenues to plummet in 2015, Moody's noted that the company's current ratings and outlook appropriately capture its current credit risk profile and significant challenges for the near term given the loss of its main business segment. Moody's had previously lowered the company's ratings to Caa2/Ba2.bo from Caa1/Baa1.bo, on 19 November 2014, in light of the announcement of the regulatory restrictions and APS' loss reserve deficiency finding. According to Diego Nemirovsky, lead analyst at Moody's, "Seguros Illimani's ratings reflect its very weak profitability and modest participation in the domestic P&C market, its lack of product depth and diversification, and questions about its reserve adequacy, highlighted by APS' recent finding, which raises concerns about the company's financial controls and corporate governance practices". Among factors that could result in a rating downgrade for Seguros Illimani, Moody's mentioned the following: 1) company's failure to comply with minimum regulatory solvency margins and/or reserves' coverage requirements, 2) impairment in the company's reported capitalization metrics, or 3) disclosure of further reserve deficiencies. Conversely, Seguros Illimani's ratings could be upgraded in the event of an improved capitalization and profitability, along with a strategy to strengthen the insurer's franchise going forward. Based in La Paz, Seguros Illimani reported a net loss of BOB 3.3 million, and gross premiums written of BOB 34.3 million for 2014. At 2014 year-end, total assets were BOB 78.8 million and shareholders' equity was BOB 20.1 million. =========== B R A Z I L =========== BRAZIL: Drought Could Last 30 More Years, Meteorologist Says ------------------------------------------------------------ Cleyton Vilarino at EFE News reports that the current drought in southeastern Brazil has created the greatest water shortage in the last 85 years and could last for 30 more years, a meteorologist said. The meteorologist and partner-director of the consultancy Somar Meteorology, Paulo Ethichury, told EFE News that the South American country's current climate follows a cooling cycle in the Pacific Ocean during recent years, which came after the 1980s, 1990s and 2000s, when it was warmer. Agribusiness was frightened by the climate at the beginning of this year, with delays in the soybean crop and lower production levels forecast for other agricultural products like coffee, the report notes. According to Mr. Ethichury, longer periods of drought could be repeated next year, says the report. "The current phase is the same we went through in the 1940s, when there were also smaller volumes of rain. This is a new cycle, in which we're returning to the dry phase," according to the specialist, for whom weather cycles tend to last a period of 30 years, the report relates. The water crisis in the southeast has alerted the states of Rio de Janeiro, Minas Gerais, Espirito Santo, and principally, Sao Paulo, the richest, most densely populated in the country, the report relays. The Cantareira dam system, which supplies 6.5 million people -- a third of the Sao Paulo metropolitan area -- has already consumed twice the so-called "dead volume," an additional reserve for the reservoirs, the report notes. According to EFE News, the rains of February and March, despite having been heavier than the average for those months, were not sufficient to improve the situation. Meanwhile, the president of the state-run agricultural research company Embrapa, Mauricio Antonio Lopes, said that drought has sparked the introduction of new technologies and the production of genetically modified organisms, or GMOs, in the country, the report relays. "We're incorporating technologies that will make our agriculture more able to withstand the lack of water," Mr. Lopes told the daily Folha of Sao Paulo in an interview, the report adds. CAMARGO CORREA: S&P Lowers CCR to 'BB-'; Outlook Negative --------------------------------------------------------- Standard & Poor's Rating Services lowered its global scale corporate credit and debt ratings on Camargo Correa S.A. (CCSA) and InterCement do Brasil S.A. (InterCement) to 'BB-' from 'BB'. At the same time, S&P lowered its national scale ratings on Camargo's senior unsecured debt and the national scale corporate credit rating on InterCement to 'brA-' from 'brAA-'. The outlooks on both global and national scale ratings remain negative. The downgrade is based on S&P's expectation of the group's weaker cash flow generation and more leveraged balance sheet in 2015 and 2016. This will result from Brazil's weak economy, which will pressure the company's cement and the engineering and construction (E&C) units, and from real's devaluation, because about 12% of CCSA's consolidated debt is dollar denominated while its cash flow generation is pegged mainly to reals and other emerging-market currencies. S&P's ratings on InterCement mirror the ratings on its parent company, CCSA, because S&P considers both entities as a single economic group bearing the same default risk. Despite InterCement's 'bb' stand-alone credit profile (SACP), CCSA's credit profile caps the rating on the subsidiary since S&P do not see Intercement sufficiently ring-fenced from its group. CCSA owns InterCement, which, in turn, controls the group's major industrial activity, the cement division. S&P considers InterCement as a core subsidiary of CCSA. As the subsidiary's scale increases, its financial performance and funding prospects become more independent from those of the group than in the past. Also, InterCement's outstanding bond currently has some covenants that could prevail the company to upstream a significant share of its resources to CCSA. Although S&P currently don't view a delinked relationship between the two companies, InterCement's performance could suffer if it were to mitigate parent's financial and operating woes. S&P's analysis is also currently based on the assumption that InterCement will remain the main cash generator for CCSA and that the later should continue to exercise control over InterCement's main financial policies. S&P's ratings on CCSA incorporate a positive assessment of the quality of its capital structure, which increased S&P's anchor by one notch to reflect the quality and liquid investments of the company's concessions unit. In S&P's view, CCR S.A.'s and CPFL Energia S.A. represent significant equity investments, which the company can monetize, if needed. Such action would bolster S&P's assessment of the company's financial risk profile. InterCement's 'bb' SACP is based on its "satisfactory" business risk profile and "aggressive" financial risk profile because the subsidiary's leverage ratios and liquidity are stronger than those of CCSA. ECORODOVIAS INFRAESTRUTURA: Moody's Rates BRL600M Debenture at Ba1 ------------------------------------------------------------------ Moody's America Latina assigned Ba1 and Aa1.br ratings on the global scale and on the Brazilian National Scale Rating (NSR), respectively, to the BRL600 million senior, unsecured debentures to be issued by Ecorodovias Infraestrutura e Logistica S.A. and guaranteed by Ecorodovias Concessoes e Servi‡os S.A. (not rated) in two tranches of 3 and 5 years. The outlook is stable for all ratings. Ecorodovias Infraestrutura's first debenture issuance will have the following financial covenant at the level of the guarantor Ecorodovias Concessoes e Servi‡os S.A.: i) Net Debt to EBITDA equal or less than 3.75x times. Ecorodovias Concessoes e Servi‡os S.A.'s 5-year BRL800 million outstanding debentures have the following covenants: i) Net Debt to EBITDA lower than 3.5x times and Debt Service Coverage Ratio higher than 2.0x. The indenture also includes additional restrictions that prevent Ecorodovias Concessoes from providing guarantees to any other company which is not consolidated by Ecorodovias Concessoes when the company's consolidated Net Debt to EBITDA ratio is equal or lower than 3.0x. Ecorodovias Infraestrutura will use the debenture proceeds to re- pay BRL275 million promissory notes maturing on April 27, 2015, and to finance CAPEX and strengthen its cash position. The Ba1 / Aa1.br rating for the senior unsecured notes to be issued by Ecorodovias Infraestrutura reflects the financial strength and diversified toll road portfolio of its fully-owned subsidiary Ecorodovias Concessoes which controls five toll road concessions that are strategically located in some of the most economically robust regions of the country which have demonstrated a solid track record of tolled traffic with strong as well as stable and predictable operating cash flows. These five toll road concessions are the most representative assets of the group in terms of net revenues (76%), EBITDA (80%) and net income (84%). The strength of these toll road companies has facilitated the high volume of dividends paid from Ecorodovias Concessoes to Ecorodovias Infraestrutura. The rating also considers the experienced management team which has developed a constructive relationship with the regulatory authorities for its concessions and the group's good governance practices. Although Moody's expects the group's expansion strategy coupled with its track record of high dividend payments to shareholders will result in higher leverage, Moody's expect that Ecorodovias Concessoes' subsidiaries will maintain their capacity to support the high dividend volumes paid in 2013 and 2014 which should enable Ecorodovias Infraestrutura to retain its capacity to service its debt as well as to keep the financial capacity to participate in new concessions. The stable outlook reflects our view that the credit metrics of Ecorodovias Infraestrutura will not significantly deteriorate to a level that negatively affects the capacity of Ecorodovias Concessoes in raising resources to finance CAPEX or to refinance its current debt. The stable outlook also considers the fact that the guarantor's credit metrics will continue to be adequate for the rating category primarily as a result of steadily growing operating revenues and relatively low remaining CAPEX requirements of the five toll roads controlled by the company that should provide continued good access to the local capital and bank markets which will enable it to maintain a healthy liquidity position. The rating could be upgraded if Ecorodovias Concessoes were to steadily improve its liquidity profile and produce credit metrics in line with or exceeding historical performance so that the FFO- to-Debt ratio (including guarantees) remains above 25%, Moody's Debt Service Coverage Ratio stays above 1.8x, and RCF to Capex rises above 1.0x on a sustainable basis. The rating could be downgraded if there is a significant and sustained deterioration in Ecorodovias Infraestruturas' credit metrics such that it becomes difficult for Ecorodovias Concessoes or its subsidiaries to refinance their current debt or to raise additional debt to finance CAPEX or if FFO-to-Debt ratio (including guarantees) falls below 20%, Moody's Debt Service Coverage Ratio declines to1.5x, and RCF to CAPEX falls to 0.75x. Headquartered in Sao Paulo, Brazil, Ecorodovias Infraestrutura is the holding company of one of Brazil's largest infrastructure concession groups which operates and maintains approximately 1,769 kilometers of toll roads under six toll road concessions, one port and some logistic companies. The group also controls other businesses which are not meaningful in terms of revenues, cash generation, debt and assets. Ecorodovias Infraestrutura is controlled by the CR Almeida Group (unrated) with a 64% participation and the remaining 36% of shares are free float. In 2014, Ecorodovias Infraestrutura reported consolidated revenues of BRL2.2 billion excluding construction revenues, EBITDA of BRL1.6 billion and Net Income of BRL472 million. In the same period and according Moody's adjustments, Ecorodovias Concessoes e Servi‡os S.A. the subsidiary which guarantees the debentures to be issued by Ecorodovias Infraestrutura reported net revenues of BRL 1.7 billion, EBITDA of BRL1.2 billion and Net Income of BRL397 million. OAS S.A.: Fitch Lowers Issuer Default Rating to 'D' --------------------------------------------------- Fitch Ratings has downgraded the foreign currency (FC) and local currency (LC) Issuer Default Ratings (IDRs) of OAS S.A. (OAS) and Construtora OAS S.A. to 'D' from 'RD' and their long-term national scale ratings to 'D(bra)' from 'RD(bra)'. In conjunction with the rating action, Fitch has also downgraded OAS Empreendimentos S.A. national scale rating to 'D(bra)' from 'RD(bra)'. KEY RATING DRIVERS The downgrades reflect OAS's filing for bankruptcy protection. On top of OAS S.A., the request for bankruptcy protection involves Construtora OAS S.A., OAS Empreendimentos S.A., SPE Gestao e Exploracao de Arenas Multiuso S.A., OAS Infraestrutura S.A., OAS Imoveis S.A., OAS Investments GmbH, OAS Investments Limited e OAS Finance Limited. On Jan. 2, 2015, OAS announced the suspension of interest and amortization payments as the terms proposed by banks to refinance the group's debt worsened with the allegations of involvement in the Lava-Jato investigation. OAS has faced difficulties to sell assets due to several injunctions presented by creditors. Fitch believes the bankruptcy protection will facilitate the sale of investments, as with the court's authorization, creditors will not be able to object the decision. KEY ASSUMPTIONS -- Fitch believes court will accept OAS's filings. RATING SENSITIVITIES The company's ratings reached the lowest level in Fitch's rating scale. An upgrade is unlikely at this time given the group's bankruptcy protection filing. Fitch has downgraded these ratings: OAS S.A.: -- FC IDR to 'D' from 'RD'; -- LC IDR to 'D' from 'RD'; -- National scale rating to 'D(bra)' from 'RD(bra)'. Construtora OAS S.A.: -- FC IDR to 'D' from 'RD'; -- LC IDR to 'D' from 'RD'; -- National scale rating to 'D(bra)' from 'RD(bra)'. OAS Investments GmbH: -- FC IDR to 'D' from 'RD' and withdrawn. OAS Empreendimentos S.A.: -- National scale rating to 'D(bra)' from 'RD(bra)'. Fitch also rates these issuances of the OAS group: OAS S.A.: -- BRL300 million debentures 3rd issuance due 2016 at 'D(bra)'; -- BRL250 million debentures 4th issuance due 2027 at 'D(bra)'; -- BRL300 million debentures 5th issuance due 2015 at 'D(bra)'. OAS Investments GmbH: -- USD850 million senior unsecured notes due 2019 at 'C/RR4'. OAS Finance Ltd. -- USD500 million perpetual bonds at 'C/RR4'; -- USD400 million senior unsecured notes due 2021 at 'C/RR4'. ========================== C A Y M A N I S L A N D S ========================== AQUARIUS LTD: Creditors' Proofs of Debt Due April 30 ---------------------------------------------------- The creditors of Aquarius Ltd are required to file their proofs of debt by April 30, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Feb. 26, 2015. The company's liquidator is: Arcadia Group Ltd Telephone: (345) 945 1830 Facsimile: (345) 945 1835 P.O. Box 10300 Grand Cayman KY1-1003 Cayman Islands ARDON MAROON: Court Enters Wind-Up Order ---------------------------------------- On March 6, 2015, the Grand Court of Cayman Islands entered an order to wind up the operations of Ardon Maroon Asia Eagle Feeder Fund, LP. David Griffin and John Batchelor were appointed as the company's liquidators. The company's liquidators are: David Griffin FTI Consulting (Cayman) Limited 2D Landmark Square 64 Earth Close, SMB PO Box 30613, Grand Cayman KY1-1203 Cayman Islands; and John Batchelor FTI Consulting (Hong Kong) Limited The Center, Level 22 99 Queens's Road Central, Central Hong Kong ASP LAKESIDE: Commences Liquidation Proceedings ----------------------------------------------- On March 3, 2015, the shareholders of ASP Lakeside Cayman Blocker 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: ASP Manager Corp. c/o Eric Schondorf 299 Park Avenue 34th Floor, New York New York 10171 United States of America Telephone: +1 (212) 476 8000 BRIGHTIME VENTURES: Creditors' Proofs of Debt Due April 30 ---------------------------------------------------------- The creditors of Brightime Ventures Limited are required to file their proofs of debt by April 30, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 9, 2015. The company's liquidator is: Ian D. Stokoe c/o Sarah Moxam Telephone: (345) 914 8634 Facsimile: (345) 945 4237 P.O. Box 258 Grand Cayman KY1-1104 Cayman Islands CLARITUS F SPC I: Creditors' Proofs of Debt Due April 20 -------------------------------------------------------- The creditors of Claritus F SPC I are required to file their proofs of debt by April 20, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 10, 2015. The company's liquidator is: CDL Company Ltd. Nexus Way, Camana Bay P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands CLARITUS F SPC II: Creditors' Proofs of Debt Due April 20 --------------------------------------------------------- The creditors of Claritus F SPC II are required to file their proofs of debt by April 20, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 10, 2015. The company's liquidator is: CDL Company Ltd. Nexus Way, Camana Bay P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands CLARITUS M SPC I: Creditors' Proofs of Debt Due April 20 -------------------------------------------------------- The creditors of Claritus M SPC I are required to file their proofs of debt by April 20, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 10, 2015. The company's liquidator is: CDL Company Ltd. Nexus Way, Camana Bay P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands E.WORLD (HOLDINGS): Commences Liquidation Proceedings ----------------------------------------------------- At an extraordinary meeting held on Jan. 23, 2015, the shareholders of E.World (Holdings) Ltd. resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Feb. 28, 2015, will be included in the company's dividend distribution. The company's liquidator is: Ng Kwok Cheung, Bernard Michelle R. Bodden-Moxam Telephone: (345) 946-6145 Facsimile: (345) 946-6146 Portcullis TrustNet (Cayman) Ltd. The Grand Pavilion Commercial Centre Oleander Way, 802 West Bay Road P.O. Box 32052 Grand Cayman KY1-1208 Cayman Islands GUANAY FINANCE: Fitch Cuts $450MM Fixed-Rate Notes Rating to 'BB' ----------------------------------------------------------------- Fitch Ratings has downgraded the following rating assigned to the 2013-1 notes issued by Guanay Finance Limited, a special purpose vehicle incorporated in the Cayman Islands and sponsored by LATAM Airlines Group S.A. (LATAM): -- Series 2013-1 USD450 million senior secured fixed-rate notes to 'BB' from 'BB+'. The Rating Outlook is Stable. The issuance is backed by U.S. and Canadian dollar-denominated ticket receivables originated by LATAM. Purchased receivables result from airline ticket sales and cargo charges by LAN Airlines S.A. (LAN) under IATA code 045 that are purchased using a qualified credit, debit or charge card in the U.S. and Canada. Fitch's rating addresses the timely payment of interest and principal on a quarterly basis. KEY RATING DRIVERS The rating action follows Fitch's downgrade to LATAM's Issuer Default Rating (IDR) and reflects the following: Credit Quality of the Originator: On April 1, 2015, Fitch downgraded LATAM's IDR to 'BB-'/Stable Outlook from 'BB'/Negative Outlook. Fitch also affirmed the GCA score of 'GC3' assigned to the operations of LATAM excluding TAM. The credit strength of the transaction is linked to the credit quality of LATAM. Coverage Ratios Meet Expectations: The quarterly debt service coverage ratio (DSCR) averaged 4.1x in 2014, slightly above Fitch's expected quarterly DSCR of 3.78x. Fitch's DSCR considers maximum and quarterly debt service for the life of the transaction. Fitch's base case assumed no growth in purchased receivables. Future Flow Debt Relative to Liabilities: The future flow issuance represents approximately 5.1% of LATAM's consolidated debt and 6.5% of unconsolidated debt (excluding TAM) as of December 2014. While these percentages are low relative to the balance sheet, the transaction is large relative to the company's total unsecured debt, as most of the company's debt relates to leases and secured debt. Moderate Diversion Risk: While designated obligors have signed notice and consent agreements (N&Cs), the transaction is exposed to potential diversion risk. Cash flows could be diverted from the transaction by changing designated obligors or rerouting sales through a different IATA code. This risk limits differentiation of the issuance rating from the originator's IDR. RATING SENSITIVITIES The rating is sensitive to changes in the credit quality of LATAM. A downgrade of LATAM's 'BB-' IDR could lead to a downgrade of the notes. In addition, a contraction in LAN's North American gateway business that would result in a decline in DSCRs could lead to rating downgrades. HCSP SPC: Creditors' Proofs of Debt Due April 20 ------------------------------------------------ The creditors of HCSP SPC are required to file their proofs of debt by April 20, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on March 5, 2015. The company's liquidator is: Gene Dacosta Telephone: (345) 814 7765 Facsimile: (345) 945 3902 P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands INVEST AD: Commences Liquidation Proceedings -------------------------------------------- On March 12, 2015, the sole shareholder of Invest AD Solutions Holdings I 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: Hazem Ahmed Ali Zaidan Flat No. 1506; 15th Floor; Al Siri Tower Hamdan Street; Abu Dhabi United Arab Emirates MAGHREB VICTORY: Creditors' Proofs of Debt Due April 28 ------------------------------------------------------- The creditors of Maghreb Victory Ltd. are required to file their proofs of debt by April 28, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on March 10, 2015. The company's liquidator is: Paul Travers Harbour Centre, Ground Floor P.O. Box 1569, 42, North Church Street George Town, Grand Cayman KY1-1110 Cayman Islands Telephone: +1 (345) 949 4018 Facsimile: +1 (345) 949 7891 e-mail: general@caymanmanagement.ky NICHE AVENUE: Commences Liquidation Proceedings ----------------------------------------------- On Oct. 23, 2014, the sole shareholder of Niche Avenue Fund, Ltd. resolved to voluntarily liquidate the company's business. The company's liquidator is: Fabian Schonenberg Tromino Financial Services Ltd. P.O. Box HM 458, Hamilton HM BX Bermuda SKYDIVE COSTA: Placed Under Voluntary Wind-Up --------------------------------------------- On Dec. 2, 2014, the sole shareholder of Skydive Costa Brava Limited resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Mr. Abdel Hameed Mostafa Ahmed Telephone: +1 (345) 769 4422 Facsimile: +1 (345) 769 9351 c/o Avalon Ltd. Landmark Square, 1st Floor 64 Earth Close P.O. Box 715 Grand Cayman KY1-1107 Cayman Islands YUKON RE: Placed Under Voluntary Wind-Up ---------------------------------------- On Feb. 27, 2015, the sole shareholder of Yukon RE, SPC resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: RSM Cayman Ltd. c/o Ian Lomas Telephone: (345) 743 3016 Harbour Place, 2nd Floor George Town P.O. Box 10311 Grand Cayman KY1-1003 Cayman Islands ========= C H I L E ========= LATAM AIRLINES: Moody's Assigns 'Ba2' CFR, Outlook Stable --------------------------------------------------------- Moody's Investors Service assigned a Ba2 corporate family rating (CFR) to LATAM Airlines Group S.A (LATAM Airlines). The outlook on the rating is stable. The Ba2 CFR reflects LATAM Airlines' significant market position in Latin America with a well diversified business portfolio of air transportation services, superior network connectivity and strategic alliances, along with an improving operating structure that allows them to remain competitive going forward. Adequate liquidity, good financial disclosures and a conservative approach to risk management are additional credit positives for this company. Constraining the ratings is the company's revenue and cash generation exposure to weak currencies in Latin American not fully mitigated by the company's hedging strategies, which contrast to a large component of costs and capital expenditures in US dollars. LATAM Airlines is also exposed to a slowing macroeconomic environment throughout Latin America, particularly in Brazil, which will likely strain demand growth in 2015 and increase pressure on air carriers to reduce yields and/or reduce capacity to maintain profitability. Moody's also see some executions risks related to the ongoing integration of LAN and TAM operations and evolving regulatory changes. Despite the current high leverage, LATAM Airlines' overall credit profile has been improving, reflecting the company's progress on the business combination of LAN Airlines S.A. of Chile and TAM S.A. of Brazil. But the improvement of profitability from its enhanced network and geographic diversity should be more visible over the next few years, given the company is still in the process of optimize the LAN and TAM's individual fleet plans and phasing out of the less efficient models to accommodate with its revised growth strategy. In terms of cost saving initiatives, LATAM has recently announced a USD650 million cost reduction plan to be implemented over 3 years, which could potentially reduce unit costs by 15%, which should contribute to gradual improvements in operating margins an leverage reduction. The company also has an adequate liquidity profile, benefiting from solid internal cash generation. LATAM Airlines' unrestricted cash balances to revenue sit around 15%, which is in line with global peer group average. The company reported unrestricted cash and short term investments in the amount of USD1.5 billion as of Dec. 31, 2014, which is enough to cover the entirety its upcoming debt maturities during 2015. Additional flexibility is provided by the company's USD210 million in committed credit lines with 100% availability, though subject to company specific financial covenant tests and general market material adverse change clauses. The stable outlook reflects Moody's expectation that LATAM Airlines will gradually improve its financial profile over the next 12-to-18 months, as a result of its increased focus on cost reduction and favorable trends for fuel costs, which will support healthier operating margins going forward. The geographic and business diversity provides the company exposure to different demand dynamics that should help offset near term challenges related economic slowdowns in Brazil, foreign currency volatility and increasing competition in the region. A rating upgrade could be considered if LATAM Airlines is able to successfully execute its growth strategy and strengthen its financial profile, such that adjusted debt-to-EBITDA improves to less than 4.0 times on a sustained basis, along with improvement to a stronger liquidity profile, as illustrated by a cash-to- revenue position closer to 25%. Conversely, negative rating pressure could develop if the company's liquidity is strained due to a prolonged market downturn or significant cost pressures, which combined with the company's significant aircraft acquisition program could lead to weaker free cash flow generation. Downward pressure on the rating could occur if LATAM Airlines' adjusted EBITDA margins remain below 20% (17.7% in 2014) or adjusted leverage remains above 6.0 times (6.2 times in 2014) for a sustained period. The principal methodology used in these ratings was Global Passenger Airlines published in May 2012. LATAM Airlines Group S.A. (LATAM Airlines) is a Chilean-based airline holding company formed by the business combination of LAN Airlines S.A. of Chile and TAM S.A. of Brazil in June 2012, which remain operating as two separate brands. LATAM Airlines is the larger airline group in South America with local presence in seven countries (Brazil, Chile, Peru, Ecuador, Argentina, Colombia and Paraguay). The company provides intra-regional and international passenger services and it also has a cargo operation that is carried out through the use of belly space on passenger flights and dedicated freighter service. In 2014, LATAM Airlines generated around USD12 billion in net revenues and carried over 67.8 million passengers and 1.1 million tons. LATAM AIRLINES: Fitch Lowers IDR to 'BB-'; Outlook Stable --------------------------------------------------------- Fitch Ratings has downgraded LATAM Airlines Group S.A.'s (LATAM) foreign currency Issuer Default Rating (IDR) to 'BB-' from 'BB'. In addition, Fitch has downgraded TAM S.A.'s (TAM) foreign and local currency IDRs to 'BB-' from 'BB' and its national long-term rating to 'A(bra)' from 'A+(bra)'. The Rating Outlook is Stable. The rating downgrade reflects the review of LATAM's operational performance as well as expectations for the next 24 months, ending in December 2016, in terms of operational margins, adjusted gross leverage, free cash flow (FCF) generation, and liquidity. It also incorporates the review of LATAM's credit metrics versus its global peers within the rating category. LATAM's gross adjusted leverage and operational margin metrics remain weak for the rating category, the ratings factor in material improvement in these areas during the next quarters. The Stable Outlook reflects expectations that the company will stabilize its operations and execute its business plan during 2015-2016 period reaching EBIT margin around 8%, adjusted gross leverage trending to 5x, and liquidity, measured as cash and unused committed credit lines/latest 12 months (LTM) revenues ratio, remaining in the upper level of the 10% to 15% range. Brazil's macroeconomic scenario should continue to challenge the company's operational performance. LATAM's ratings reflect its diversified business model, strong regional market position, high gross adjusted leverage, and adequate liquidity. The ratings also incorporate the company's solid business position in the domestic and international Brazilian market as well as the volatility in the operational results - associated within these markets - through the economic cycle. The ratings of LATAM and TAM and their subsidiaries take into account the credit linkage between the two companies, which stems from their legal, operational, and strategic ties. These links are reflected in the existence of cross-guarantee and cross- default clauses related to the financing of aircraft acquisitions for both LATAM and TAM. KEY RATING DRIVERS High Financial Leverage: LATAM's adjusted gross leverage metric is high and remains weak for the rating category, the ratings consider a gradual business deleverage - driven by better margins - taking place during the next several quarters. The company's adjusted gross leverage is expected to trend toward levels around 5x during the 2015-2016 period. LATAM's gross adjusted leverage, measured as total adjusted debt over EBITDAR ratio, was 6.1x in LTM Dec. 31, 2014 (6.1x in 2013). The company achieved revenues, EBITDAR, and an EBITDAR margin of USD12.5 billion, USD2.0 billion, and 16.4%, respectively, during LTM Dec. 31, 2014, while its 2014 EBIT margin was 4.1% versus 4.9% in 2013. In addition, the company's total adjusted debt was approximately USD12.4 billion at the end of December 2014. This debt includes USD8.7 billion in on-balance- sheet debt and USD3.7 billion in off-balance-sheet obligations related to operating leases with combined rental payments of around USD521 million for LTM Dec. 31, 2014. EBIT Margin Improvement Key for Business Deleverage: Factored in the ratings is the view that the company will improve its operational performance and FCF generation resulting in lower gross adjusted leverage during the period 2015-2016 period. Although pricing is expected to remain a crucial issue as macro weakness, FX trend, and soft corporate demand should result in passenger yields declining during 2015, lower fuel cost is expected to offset the decline in revenues per unit. Including fuel hedge cost, the company's total fuel cost per unit is expected to reach a significant decline during 2015. All factors included the company RASK - CASK spread per unit is expected to improve resulting in the company's EBIT margin trending to levels around 8% during the 2015-2016 period versus 4.1% reached during 2014. By segments, LATAM's capacity management in 2014 resulted in -2% in the international segment, -1% in Brazil's domestic segment, +4% in the Spanish Speaking Domestic segment, and -6% in the cargo segment. LATAM plans capacity increases in 2015 of between 4% and 6% in the international segment, 0% in Brazil's domestic segment, between 4% and 5% in the Spanish Speaking Domestic segment, and from 1% to 3% in the cargo segment. Overall, the company's consolidated capacity is expected to increase to approximately 5.3% in 2015 and 8% in 2016, respectively. FCF Trend Incorporated: The company's FCF is expected to be neutral to slightly negative during the 2015-2016 period reflecting balanced levels of cash flow operations and capital expenditures. LATAM maintains a fleet plan that calls for capex levels of USD878 million and USD1 billion during 2015 and 2016, respectively. Including non-fleet capex, the company's total net capex in 2015 and 2016 is estimated at levels of USD1.4 billion and USD 1.6 billion, respectively. From a strategic and operational point of view, the company's fleet renewal is viewed as a positive as it will provide a cost advantage in terms of fuel consumption. By the end of December 2014, LATAM's consolidated fleet was composed of 327 aircraft units, distributed among its short haul/regional fleet (238 units), long haul fleet (74 units); and cargo fleet (15 units). The company's fleet financing strategy is to maintain approximately 67% of its fleet financing on-balance and the remaining off-balance through operational leases. Adequate Liquidity: Fitch views the company's liquidity position as adequate for the rating category. At the end of December 2014, the company had a cash position of USD1.5 billion, along with USD210 million in unused committed credit lines. This level of liquidity, measured as total cash and marketable securities plus unused committed credit lines over LTM revenues, represents 14% of the company's revenues for LTM Dec. 31, 2014. This ratio is expected to be around 15% in the foreseeable future. The company's funds from operations (FFO) fixed charge coverage ratio was 1.8x during 2014, and it is expected to improve trending to levels around 2.4x over the next 24 months ended in December 2016. In addition, LATAM faces debt amortizations of USD1.3 billion and USD1.3 billion during 2015 and 2016, respectively, which will be primarily addressed through refinancing. Market Position and Diversification Positively Factored: Fitch views LATAM's strong business position as sustainable in the medium term based on its business diversification, as well as its solid business position both within Latin America and in the international routes between Latin America and either North America or Europe. The ratings incorporate the company's leading market share in Brazil's domestic and international markets, as well as the volatility in operating results associated within these markets through the economic cycle. The company maintains a leading market position in the domestic markets of Brazil, Chile and Peru with participations of approximately 40%, 80%, and 65%, respectively. The company's market share in the Colombian domestic market is around 20%. The company's market share position in terms of ASK in the intra- regional traffic is estimated around 55%, while its participations in the traffic of the Latin American region with USA/Canada and Europe are estimated at levels 24% and 13%, respectively. The company maintains a good business diversification with International Passengers, Domestic Brazil, Domestic Spanish Speaking Countries, and Cargo divisions representing 39%, 30%, 14% and 14%, respectively, of the company's total revenues by the end of December 2014. Strong Parent - Sub Credit Linkage: LATAM maintains indirectly substantially all of the economic rights and 20% of the voting rights in TAM, which is an affiliate company of LATAM. The ratings of LATAM and TAM also incorporate the strong credit linkage between both entities with significant legal, operational and strategic ties existing between the two companies. This situation is reflected in the existence of cross guarantees and cross default clauses related to the aircraft financing for both entities, no restriction in terms of dividends and/or intercompany loan between both entities with substantially all dividend flow generated by TAM expected to be oriented to LATAM through its non-voting shares in TAM. In addition, the financing of the combined fleet plan capital expenditure is primarily implemented through LATAM with the new aircraft being subleased to TAM. KEY ASSUMPTIONS Fitch's key assumptions within the rating case for the issuer include: -- 2015 EBIT margin around 8%. -- Gross leverage trending to levels around 5x during the 2015- 2016 period, and consistently in the 4.5x to 5x range thereafter. -- Neutral FCF in 2015. -- FFO fixed charge coverage consistently above 2.25x. -- Cash and marketable securities over LTM revenues consistently in the upper level of the 10% to 15% range. RATING SENSITIVITIES Considerations that could lead to a negative rating action (Rating or Outlook): Future developments that may, individually or collectively, lead to a negative rating action include: -- Sustained negative FCF; -- Weakening liquidity consistently at levels below incorporated expectations; -- Gross adjusted leverage consistently above 5x; -- EBIT margin consistently below 7%; -- FFO fixed charge coverage consistently below 2x. Considerations that could lead to a positive rating action (Rating or Outlook): Conversely, Fitch may take a positive rating action if a combination of these factors takes place: -- Adjusted gross leverage sustained at 4x; -- Neutral to positive FCF generation; -- FFO fixed charge coverage consistently around 3x; -- EBIT margin moving to 10%. Fitch has taken these rating actions: LATAM Airlines Group S.A.: -- Long-term Issuer Default Rating (IDR) downgraded to 'BB-' from 'BB'; -- National Equity Rating affirmed at 'Primera Clase Nivel 2 (cl)'. TAM S.A. -- Long-term IDR downgraded to 'BB-' from 'BB'; -- Local currency IDR downgraded to 'BB-'from 'BB'; -- National long-term rating downgraded to 'A(bra)' from 'A+(bra)'. Tam Linhas Aereas S.A. -- Long-term IDR downgraded to 'BB-'from 'BB'; -- Local currency IDR downgraded to 'BB-' from 'BB'; -- National long-term rating downgraded to 'A(bra)' from 'A+(bra)'. Tam Capital Inc. -- USD300 million senior unsecured note due 2017 downgraded to 'BB-' from 'BB'. Tam Capital Inc. 2 -- USD300 million senior unsecured note due to 2020 downgraded to 'BB-' from 'BB'. Tam Capital Inc. 3 -- USD500 million senior unsecured note due 2021 downgraded to 'BB-' from 'BB'; The Rating Outlook is revised to Stable from Negative. =============== C O L U M B I A =============== PACIFIC RUBIALES: S&P Lowers CCR to 'BB'; Outlook Negative ---------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit and issue-level ratings on Pacific Rubiales Energy Corp. (PRE) to 'BB' from 'BB+'. At the same time, S&P removed the ratings from CreditWatch negative, where S&P placed them on Jan. 16, 2015. The outlook is negative. The downgrade reflects the company's weaker financial credit metrics -- due to lower commodity prices -- which prompted S&P to revise its assessment on the company's financial risk profile to "significant" from "intermediate." Moreover, the negative outlook reflects the uncertainty over the company's production performance during the next two years, while the continued drop in oil prices could undermine PRE's liquidity and credit metrics, absent potential assets sales. ============= J A M A I C A ============= PETCOM: Jamaica Government Plans to Sell Firm --------------------------------------------- RJR News reports that the Jamaican Government is proceeding with plans to sell the State-owned company, Petcom. Petcom, which is a subsidiary of the Petroleum Corporation of Jamaica, comprises 24 service stations and 14 LPG filling plants, island-wide. Information Minister Senator Sandrea Falconer disclosed that the divestment is scheduled to be completed by September, according to RJR News. The report adds that the Cabinet has approved the establishment of an enterprise team, "to coordinate, manage and execute the privatization of Petcom, and provide the requisite administrative and technical support," she disclosed. The Enterprise team will be chaired by Professor Edwin Jones. The other members are Christopher Cargil, Christopher Lecky, Richard Dawkins, Narine Small, Catherine Williams, and Coleen Weise. Petcom recorded more than $10 billion in revenues last year. ================================ T R I N I D A D & T O B A G O ================================ TRINIDAD & TOBAGO: Central Bank Sells US$60 Million --------------------------------------------------- Trinidad Express reports that Trinidad and Tobago Central Bank has sold US$60 million to the banking system, in what it said was a measure to balance out the shortfall of foreign exchange for March. In a statement, the bank said demand for foreign exchange from the business community and public totaled US$625 million, while supply of foreign exchange, mainly from energy sector companies, amounted to US$595 million, according to Trinidad Express. "The result is an overall gap of US$30 million," the Central Bank noted, the report relays. "In keeping with its program to support the domestic foreign exchange market, Central Bank sold US$60 million to the banking system, completely offsetting the gap and providing just over US$30 million in excess supply to be used in early April 2015," the Central Bank added, says Trinidad Express. The report notes that the bank said conversions by the energy sector contributed nearly 75 per cent or US$445 million to total foreign exchange inflows for March. Demand, it added, was mainly driven by retail and distribution (US$180 million), credit cards (US$80 million) and manufacturing (US$65 million), the report relays. "Trinidad and Tobago's net official reserves currently stand at US$10.9 billion, representing just over one year's worth of import cover," the bank added, reports Trinidad Express. ================= V E N E Z U E L A ================= VENEZUELA: Dismisses Miami Herald Report on PetroCaribe ------------------------------------------------------- RJR News reports that Venezuela has dismissed an overseas media report that it has drastically reduced oil shipments to PetroCaribe member nations, including Jamaica. The Miami Herald newspaper, quoting a Barclays Bank report, said Venezuela had cut in half its subsidized shipments of crude oil to PetroCaribe member nations to 200,000 barrels daily, the report notes. However, Venezuela's Foreign Affairs Minister, Delsy Rodriguez, who visited St Kitts and Nevis, said attempts are being made to discredit PetroCaribe, the report relays. Ms. Rodriguez said PetroCaribe remains strong. According to the Miami Herald, the cuts deepened after August last year, when crude oil prices began to drop, the report discloses. It quoted Barclays Bank as saying that Cuba has received about 55,000 barrels per day since September, nearly half of what it received in 2012, the report adds. ================= X X X X X X X X X ================= * BOND PRICING: For the Week From March 23 to March 27, 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 * * *