/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150514.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 Thursday, May 14, 2015, Vol. 16, No. 094 Headlines A R G E N T I N A CENTRAL PUERTO: S&P Assigns 'CCC-' Foreign Currency LT CCR C A Y M A N I S L A N D S CRITERION CAPITAL: Creditors' Proofs of Debt Due May 25 EAST ASIA: Creditors' Proofs of Debt Due May 24 GAVEA EQUITY: Creditors' Proofs of Debt Due May 25 NSC INFLATION: Creditors' Proofs of Debt Due May 24 NSC MASTER: Creditors' Proofs of Debt Due May 24 RED MAPLE: Creditors' Proofs of Debt Due May 24 SILVERBIRCH SPC: Creditors' Proofs of Debt Due May 24 TIGER GLOBAL IX: Creditors' Proofs of Debt Due May 15 TIGER GLOBAL X: Creditors' Proofs of Debt Due May 15 VALERIE LEASING: Creditors' Proofs of Debt Due May 24 VINACASA CLO: Creditors' Proofs of Debt Due May 19 WCM FF: Creditors' Proofs of Debt Due May 25 D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: 'Deserves' Fresh Funding,' IDB Says E L S A L V A D O R BANCO AGRICOLA: Moody's Rates Foreign Currency Deposit at Ba2 J A M A I C A HARDWARE & LUMBER: Sales Plunge During Riverton Fire in March JAMAICA: US$40 Million to be Made Available, IMF Says M E X I C O GRUPO ELEKTRA: Moody's Says Ba3 CFR Unaffected by Brazil Exit GRUPO SENDA: S&P Puts B Global Scale LT CCR on CreditWatch Neg OHL MEXICO: Goes Into Damage Control After Recordings' Release PRESTACIONES FINMART: Review on Parent Unlikely to Impact B+ IDR P E R U PERU: To Tap Cash Pile From Boom Years to Spur GDP Recovery - - - - - ================= A R G E N T I N A ================= CENTRAL PUERTO: S&P Assigns 'CCC-' Foreign Currency LT CCR ---------------------------------------------------------- In October 2014, the Argentina-based electric power generator, Central Puerto S.A. (CPSA) announced its merger with Hidroelectrica Piedra del Aguila S.A. (HPDA), Centrales Termicas Mendoza S.A., and La Plata Cogeneracion S.A. CPSA took over HPDA's $74.1 million outstanding bond. Standard & Poor's Ratings Services assigned its 'CCC-' foreign currency and 'CCC+' local currency long-term corporate credit ratings on CPSA. The outlook is negative. S&P also affirmed its 'CCC-' issue-level rating on HPDA's former senior unsecured debt and withdrew its 'CCC-' corporate credit rating on the company. S&P said, "The 'CCC-' foreign currency rating on CPSA reflects our belief that the company won't be able to continue honoring its foreign currency obligations under potential restrictions to access foreign currency and/or restrictions on the ability to transfer abroad. The company doesn't have mitigating factors, such as revenues from exports, offshore accounts, or incentives in our view to continue honoring the debt judged by the degree of integration in the global market. As a result, this rating is the same as the Transfer and Convertibility (T&C) assessment on Argentina. "Although we don't cap our local currency rating on CPSA at the T&C assessment, we crafted a base-case scenario that incorporates our views of the short- and intermediate-term prospects of the economic conditions in Argentina following the sovereign's selective default that includes the incremental stress associated with potential T&C restrictions within the next eight months when we consider whether the this rating can exceed the T&C ssessment. Specifically we consider: the impact of T&C controls on factors other than debt service, such as the ability to import needed raw materials and capital equipment and the impact of T&C controls on debt acceleration clauses on foreign currency debt and cross- default clauses on local currency debt. This would mean that for the local currency rating to exceed the T&C assessment, a company should have the ability to repay all the foreign currency debt (in local currency equivalent), local currency debt accelerated due to cross-default with foreign currency debt, and other regular debt maturities. "We assumed in CPSA's base-case scenario that the bondholders accelerate the dollar-denominated debt payment after a T&C event occurs. CPSA also has some debt in Argentine pesos with Compania Administradora del Mercado Mayorista Electrico S.A. (CAMMESA, a nonprofit firm owned by generators, transporters, distributors, large-scale consumers, and the Secretary of Energy, that programs and dispatches the generation plans to cover demand and coordinate payment transactions) but does not have cross defaults with the dollar-denominated debt. Therefore, under a debt acceleration scenario, the amortization schedule of debt owed to CAMMESA will remain unchanged. Under that scenario and applying haircuts to the securities in line with our methodology for ratings above the sovereign, we expect the company's cash and short-term investments to be about ARP770 million. This amount and the expected free operating cash flows should be sufficient local currency resources to honor 100% of CPSA's dollar-denominated debt in 2015. As a result, the 'CCC+' local currency rating on CPSA is above the foreign currency rating, which our T&C assessment caps. In October 2014, CPSA announced its merger with HPDA, Centrales Termicas Mendoza S.A. (CTM), and La Plata Cogeneracion S.A. (LPC). The companies agreed to transfer 100% of their assets and liabilities to CPSA. As of the first months of 2015, all regulatory agencies, including Comision Nacional de Valores, anti- trust authorities, bondholders, and Secretary of Energy approved the transaction. ========================== C A Y M A N I S L A N D S ========================== CRITERION CAPITAL: Creditors' Proofs of Debt Due May 25 ------------------------------------------------------- The creditors of Criterion Capital Partners BP, Ltd. are required to file their proofs of debt by May 25, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 21, 2015. The company's liquidator is: Mervin Solas c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands EAST ASIA: Creditors' Proofs of Debt Due May 24 ----------------------------------------------- The creditors of East Asia Sugar Investments Limited are required to file their proofs of debt by May 24, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 21, 2015. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands GAVEA EQUITY: Creditors' Proofs of Debt Due May 25 -------------------------------------------------- The creditors of Gavea Equity Master Fund SPC are required to file their proofs of debt by May 25, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 16, 2015. The company's liquidator is: Mervin Solas c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands NSC INFLATION: Creditors' Proofs of Debt Due May 24 --------------------------------------------------- The creditors of NSC Inflation Fund, Ltd. are required to file their proofs of debt by May 24, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 23, 2015. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands NSC MASTER: Creditors' Proofs of Debt Due May 24 ------------------------------------------------ The creditors of NSC Master Fund, Ltd. are required to file their proofs of debt by May 24, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 23, 2015. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands RED MAPLE: Creditors' Proofs of Debt Due May 24 ----------------------------------------------- The creditors of Red Maple Limited are required to file their proofs of debt by May 24, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 21, 2015. The company's liquidator is: Maples Liquidation Services (Cayman) Limited c/o PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands SILVERBIRCH SPC: Creditors' Proofs of Debt Due May 24 ----------------------------------------------------- The creditors of Silverbirch SPC are required to file their proofs of debt by May 24, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 17, 2015. The company's liquidator is: Marc Randall c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands TIGER GLOBAL IX: Creditors' Proofs of Debt Due May 15 ----------------------------------------------------- The creditors of Tiger Global PIP V China Holdings IX, Ltd. are required to file their proofs of debt by May 15, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 21, 2015. The company's liquidator is: Gregory Seidell c/o Campbells Willow House, Floor 4 Cricket Square Grand Cayman KY1-1103 Cayman Islands Telephone: +1 (345) 949 2648 Facsimile: +1 (345) 949 8613 TIGER GLOBAL X: Creditors' Proofs of Debt Due May 15 ---------------------------------------------------- The creditors of Tiger Global PIP V China Holdings X, Ltd. are required to file their proofs of debt by May 15, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on April 21, 2015. The company's liquidator is: Gregory Seidell c/o Campbells Willow House, Floor 4 Cricket Square Grand Cayman KY1-1103 Cayman Islands Telephone: +1 (345) 949 2648 Facsimile: +1 (345) 949 8613 VALERIE LEASING: Creditors' Proofs of Debt Due May 24 ----------------------------------------------------- The creditors of Valerie Leasing Limited are required to file their proofs of debt by May 24, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 21, 2015. The company's liquidator is: Maples Liquidation Services (Cayman) Limited c/o PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands VINACASA CLO: Creditors' Proofs of Debt Due May 19 -------------------------------------------------- The creditors of Vinacasa CLO, Ltd. are required to file their proofs of debt by May 19, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 13, 2015. The company's liquidator is: Maples Liquidation Services (Cayman) Limited c/o PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands WCM FF: Creditors' Proofs of Debt Due May 25 -------------------------------------------- The creditors of WCM FF Dama Limited are required to file their proofs of debt by May 25, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 22, 2015. The company's liquidator is: Mervin Solas c/o Maples Liquidation Services (Cayman) Limited P.O. Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: 'Deserves' Fresh Funding,' IDB Says --------------------------------------------------------- Dominican Today reports that Inter-American Development Bank (IDB) President Luis Alberto Moreno said the entity is increasingly working with the country in areas of support "which it deserves" for its economy. "More and more we increase the amount of resources at the service of the government, without regard to fiscal and economic challenges, we believe that the country deserves the bank's support and are committed to it," the IDB president said during one of the activities of Dominican Week in the United States (SemDomUSA), according to Dominican Today. In that regard IDB representative in Dominican Republic Flora Montealegre said around US$1.5 billion financing was provided for the 2013-2016 period, the report notes. "We've already executed 80% to production and to strengthen human capital with projects in health and education areas. We have also been providing support to reform taxation, where great efforts must continue," the report quoted Ms. Montealegre as saying. "We focus our efforts especially in productivity and this involves working in education, significant innovation and entrepreneurship," Ms. Montealegre said, noting that there're structural reforms still pending such as labor, energy and transport, the report notes. Experts A panel of IDB experts also discussed Dominican Republic's challenges and opportunities to take advantage of the new program, which seeks to be more effective in supporting the private sector in its work in developing countries, the report relates. According to a statement from the American Chamber of Commerce (Amcham-DR), the members of the SemDomUSA delegation joined the debate during the third and final part of the event, the report notes. Conep In the closing speech National Business Council (Conep) President Rafael Blanco lauded the presentation by the IDB experts, and said he expects the private sector to take advantage regarding the new funds available, the report relays. ==================== E L S A L V A D O R ==================== BANCO AGRICOLA: Moody's Rates Foreign Currency Deposit at Ba2 ------------------------------------------------------------- Moody's Investors Service assigned foreign currency deposit ratings of Ba2 / Not Prime, as well as a ba3 baseline credit assessment (BCA) to Banco Agricola. Banco Agricola is El Salvador's largest bank and is controlled by Bancolombia (BCA of baa3). The outlook on all ratings is stable. The following ratings were assigned to Banco Agricola: -- Long term foreign currency deposit rating: Ba2, stable outlook -- Short term foreign currency deposit rating: Not Prime The ba3 BCA incorporates Banco Agricola's very strong profitability, strong capitalization and asset quality, as well as moderate, though well managed funding and liquidity risks, along with El Salvador's weak operating environment. The bank's robust profitability is evidenced by a return on average assets of about 2% historically that reflects well managed credit costs and efficient operations, notwithstanding some deterioration in efficiency over the past three years. Efficiency will continue to be pressured in light of the new tax on financial transactions imposed in September 2014, coupled with higher costs related to network expansion and operational improvements. Further, net interest margins will additionally be affected by weak loan growth and, to a lesser extent, higher funding costs. Nevertheless, noted Moody's analyst Georges Hatcherian, "we expect the bank to remain highly profitable." The bank also exhibits robust capitalization, with a ratio of tangible common equity to risk weighted assets of nearly 15% as of December 2014. Despite hefty dividend payments, Banco Agricola's capital base will face little pressure given subdued asset growth. The bank's good asset quality is reflected by a low and declining non-performing loan (NPL) ratio that equaled just 1.5% at year-end 2014, coupled with thick loan loss reserve coverage at more than two times NPLs. Nevertheless, El Salvador's continued meager economic growth and rising household indebtedness point to potential deterioration in asset quality going forward. The credit quality of the bank's sizeable retail loan portfolio, which is more sensitive to downturns in economic growth, a rise in unemployment or declines in remittances, is especially likely to be subject to pressure. The ratings also consider Banco Agricola's good access to retail customer deposit funding, as the largest bank in El Salvador. However, the significant increase in bank borrowings since 2011 as a result of the weak growth in deposits expose the bank to refinancing and repricing risks in light of an eventual normalization of monetary policy in the United States. While the bank holds substantial liquid assets, this is necessary given the absence of a lender of last resort in fully dollarized El Salvador. Banco Agricola's ratings also reflect El Salvador's "Weak" Macro Profile, which considers the country's limited wealth levels and fragile growth prospects, owing to low investment and sluggish productivity. The country also exhibits a weak rule of law and significant security-related problems. Susceptibility to event risk is moderate, mostly reflecting external vulnerability factors. Risk to external events involves heavy reliance upon exports to, and remittances and foreign direct investment from, the United States, which leave El Salvador highly exposed to a downturn in the US economy. In addition, credit penetration is in line with that of Latin America at about 40% of GDP, although loan growth has been subdued in comparison to El Salvador's regional peers' given the lackluster economy. Further, the system's reliance in market funding has increased due to meager deposit expansion, a consequence of low economic growth and more recently, the new tax on financial transactions. Given the aforementioned absence of a lender of last resort, this exposes the banking system to funding risks during periods of global risk aversion. The Ba2 foreign currency deposit rating incorporates one notch of uplift from the ba3 BCA given the high probability that Bancolombia would provide support to Banco Agricola, in light of the importance of Banco Agricola to Bancolombia's Central American expansion strategy. Because El Salvador is a legally dollarized economy without a lender of last resort, the Ba2 deposit rating does not benefit from government support. Upward pressures on Banco Agricola's ratings are relatively limited, as the BCA is constrained by El Salvador's Ba3 sovereign rating. Downward pressures on the ratings could materialize if the slow economy results in a higher than expected increase in NPLs and provisions that impairs earnings and capital levels. A downgrade to El Salvador's sovereign rating would likely trigger a lowering of the bank's ratings as well. The principal methodology used in these ratings was Banks published in March 2015. Banco Agricola is domiciled in San Salvador, El Salvador, and is the largest bank in the country with market shares of 27% in loans and deposits. As of March 2015, Banco Agricola reported consolidated assets of USD3.9 billion, deposits of USD2.7 billion, and shareholders' equity of USD496 million. ============= J A M A I C A ============= HARDWARE & LUMBER: Sales Plunge During Riverton Fire in March ------------------------------------------------------------- RJR News reports that Hardware and Lumber is reporting that the massive fire at the Riverton dump in March had a negative impact on its operations. The company, in its just released January to March financial results, says during the quarter, sales were undermined by the inability of some suppliers to meet order requirements, according to RJR News. It said the Riverton fire resulted in delays in clearing shipments from the ports as well as the closure of Spanish Town Road stores and warehouses, the report notes. Hardware and Lumber's net profit for the three months was J$34.5 million; that's 14.5 per cent less than the J$40 million reported for the corresponding period last year, the report discloses. Total revenue was J$1.7 billion, or 4.5% less than the comparative period in 2014, the report adds. JAMAICA: US$40 Million to be Made Available, IMF Says ----------------------------------------------------- An International Monetary Fund (IMF) mission visited Jamaica during May 4-12, 2015, to conduct discussions on the eighth review of Jamaica's IMF-supported program under the Extended Fund Facility (EFF). At the conclusion of the mission IMF Mission Chief Mr. Jan Kees Martijn and incoming Mission Chief Ms. Uma Ramakrishnan issued the following statement in Kingston: "The mission reached preliminary agreement with the authorities on a package of policies that aims at completing the eighth review under the EFF. Consideration by the IMF's Executive Board is tentatively scheduled for June 2015. Upon approval, SDR 28.32 million (about US$40 million) would be made available to Jamaica. "Over the past two years, Jamaica has adopted ambitious policy changes that have laid the foundation for a gradual recovery of economic growth and employment. Although painful in the short run, these policies are now starting to bear fruit. "The economic outlook is improving. Growth is expected at about 2 percent in 2015-16, supported by both domestic and global trends. Inflation fell to 4 percent in March 2015, the lowest in many years, reflecting lower fuel and electricity costs and moderating food prices. International reserves continue to increase, while debt has been put firmly on a downward trajectory. "Business and consumer confidence are both growing rapidly. Strengthening confidence in Jamaica's economic policies is evidenced by the narrowing sovereign bond spread relative to the emerging market average. "Program implementation remains strong. All quantitative performance targets through end-March were met, with the exception of the target for the primary surplus of the central government, which was narrowly missed as revenue came in lower than projected in 2014/15. Nonetheless, the primary surplus is still estimated at 7.5 percent of GDP-the central fiscal anchor of the program. Expenditures were broadly aligned with the reduced resource envelope, and the overall balance of the public sector was stronger than targeted under the program. "The budget for 2015/16 that was adopted by Parliament in March aims for maintaining the primary surplus at 7.5 percent of GDP for a third consecutive year. The budget offers room for additional spending, in particular on medication and medical supplies. Safeguards to achieve the primary surplus target include a revenue package which is expected to yield J$10 billion or 0.6 percent of GDP and ongoing reforms of the revenue administration. "The economic policies in the updated economic program aim to support economic growth and job creation while maintaining prudent fiscal policies. Important actions to improve the business climate include efforts to reduce the cost of electricity on a sustainable basis, streamline the approval process for construction permits, and make it easier to start a business. Sustaining the fiscal position over the medium term will require further steps to broaden the tax base and improve public sector efficiency. "Financial sector stability is being strengthened through progress in implementing the Banking Services Act, enhancing contingency planning and resolution frameworks, ongoing reforms in the securities dealers sector, and revamping depositor and investor protection. "The mission met with the Minister of Finance and Planning, Dr. the Hon. Peter Phillips, Bank of Jamaica Governor Brian Wynter, Financial Secretary Devon Rowe, senior government officials, as well as representatives of the private sector and civil society. The mission would like to thank the authorities and technical staff for their cooperation and hospitality." * * * 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'. =========== M E X I C O =========== GRUPO ELEKTRA: Moody's Says Ba3 CFR Unaffected by Brazil Exit ------------------------------------------------------------- Grupo Elektra S.A.B. de C.V.'s announced exit from Brazil is credit neutral given that its Brazilian operations are less than 3% of total store-count and add a minimum contribution to consolidated revenues and EBITDA. Moody's does not anticipate any change to the Ba3 corporate family rating or stable outlook of Elektra as a result of the closures, as credit metrics will still be supported by its larger operations in Mexico, Peru, and Central America. Grupo Elektra, S.A.B. de C.V., based in Mexico City, is a holding company of several retail and financial services companies with operations in the U.S., Mexico, Guatemala, El Salvador, Peru, Honduras, and Panama. Mexico represents the bulk of its operations with more than 70% of revenues. The company is controlled by the Salinas Pliego family and has a 28% floating stake trading in the Mexican stock exchange and in Spain's Latibex. As of March 31, 2015 Grupo Elektra's consolidated revenues were MXN76 billion (around USD5.5 billion) with a 22% EBITDA margin as adjusted by Moody's. GRUPO SENDA: S&P Puts B Global Scale LT CCR on CreditWatch Neg -------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'B' global scale long-term corporate credit rating on Grupo Senda Autotransporte S.A. de C.V. (Senda) on CreditWatch with negative implications. At the same time, S&P placed its 'mxBBB-' national scale corporate credit rating and its 'mxA-3' short-term national scale corporate credit and debt ratings on CreditWatch with negative implications. S&P said, "The CreditWatch placement reflects our concern regarding Senda's ability to refinance its existing syndicated loan due 2019 given its high quarterly amortization payments of about MXN120 million, which is consuming a large amount of the company's cash flow generation. "Senda's liquidity has also suffered from the company's weaker EBITDA and cash flow generation in 2014. This is due to partial pass-through of the VAT hike to tickets in the passengers segment, higher diesel prices, and higher working capital requirements stemming from higher accounts receivables related to government entities. "We could lower the rating if the company is unable to refinance its syndicated loan, which would continue to limit its financial flexibility or if the company were to raise new debt to fund its cash flow needs, undermining its financial risk profile. We could also lower the ratings if Senda can't obtain covenant waivers under its syndicated loan in case it breaches them, which could potentially trigger an accelerated debt payment." OHL MEXICO: Goes Into Damage Control After Recordings' Release -------------------------------------------------------------- EFE News reports that OHL Mexico has shifted into damage control mode following the resignation of an executive implicated in a scandal over illegal recordings that has led to a sharp drop in the price of the firm's shares on the Mexico City Stock Exchange. "In response to the illegal recordings aired by the media, the OHL Mexico board of directors held a special meeting May 12" to discuss the situation, the company, a unit of Spain's OHL, said in a statement, according to EFE News. "In addition to denouncing what happened and issuing instructions to determine the origin of the recordings and who was responsible for them, it (the board) agreed to accept the voluntary resignation of Pablo Wallentin as a company executive." The report relays that OHL Mexico said Mr. Wallentin resigned "to not get in the way of the investigation and/or do further damage to the image of the corporation," whose shares were halted on the Mexico City Stock Exchange for a few hours May 6 after plunging more than 10 percent in the trading session. The board plans to adopt the audit committee's recommendations "to bolster corporate transparency and provide more security and confidence to investors and the general public," the company said, the report notes. A newspaper column published last week accused the company of sharply raising a highway toll without justification, the report discloses. The journalist cited telephone recordings in his column as proof of wrongdoing by OHL Mexico, the report notes. Columnist Mauricio Flores, who has leveled accusations against OHL Mexico on several other occasions, made the latest allegations in an opinion piece published May 6 in Mexican daily La Razon that drew on the recorded phone conversations -- uploaded to YouTube -- involving purported company executives, the report relays. OHL Mexico has raised the toll it charges motorists to use an elevated viaduct that runs from the Cuatro Caminos intersection to the Mexico City-Queretaro highway junction by 30 percent this year, according to Flores, who said the hike was seven times the inflation rate, the report says. Mr. Flores said the toll hike was irregular because the company has been effectively charging for the construction of a second phase of the highway project even though it has not completed it yet, the report adds. OHL Mexico is a construction and highway management company. PRESTACIONES FINMART: Review on Parent Unlikely to Impact B+ IDR ---------------------------------------------------------------- According to Fitch Ratings, on April 30, 2015, EZCORP Inc. (NASDAQ: EZPW, not rated by Fitch), Prestaciones Finmart, S.A.P.I. de C.V., SOFOM, E.N.R.'s (Finmart) ultimate parent, announced a delay in its earnings release for the second quarter of fiscal year 2015 (ended March 31, 2015). The delay is due to a current review of some specific errors in a portion of Finmart's credit portfolio that may affect registered loan loss reserves and interest income in EZCORP's consolidated financial statements under U.S. GAAP. Finmart's top management affirms the latter is an internal reclassification between Finmart and its parent that should not impact the reported statements under Mexican GAAP. Fitch's baseline scenario is that Finmart's long- and short-term Issuer Default Ratings of 'B+' and 'B' respectively, as well as its long- and short-term national scale ratings of 'BBB+(mex)' and 'F2(mex)', should not be affected as a result of this internal review. However, Fitch will closely monitor the developments of the ongoing evaluation to assess any potential unexpected implications on Finmart's credit profile. Mexican GAAP allows for more discretion on the recognition of impaired loans for unregulated non-bank financial institutions such as Finmart. Therefore, as part of its periodic review process, Fitch adjusts Finmart's reported impairment and capitalization metrics for the under-reserved portion of nonperforming loans, with the aim of making its financial statements as comparable as possible to the standard regulatory requirements in Mexico. Additionally, Fitch has historically stated that ratings in this sector, including Finmart's, are affected by the high operational, political and event risks inherent in the public employers payroll deducted loans business. Fitch expects that these entities transition towards the use of more prudential accounting practices in the medium term, as regulators increase their oversight over these increasingly important players in the consumer finance segment. Finmart, established in 2003, grants personal loans secured by payroll withholdings to unionized public sector employees in Mexico. In 2012, EZCORP, a consumer finance company based in Austin, TX, acquired 60% of Finmart, and increased its participation to 76% during 2014. ======= P E R U ======= PERU: To Tap Cash Pile From Boom Years to Spur GDP Recovery ----------------------------------------------------------- John Quigley at Bloomberg News reports that Peru will draw on $29 billion of savings to bolster public investment rather than issue new debt in the international market as borrowing costs rise, the nation's Finance Minister Alonso Segura said. The government has savings equivalent to 16 percent of gross domestic product accumulated during a decade of rising metal prices, Mr. Segura said in an interview at Bloomberg's offices in New York. Local and state authorities should use their savings to finance public works as the drop in metal prices curbs their revenue, he said. "You don't want to go all out and issue new debt when you have money sleeping in the bank," Segura said. "We want to avoid having to go to market" before President Ollanta Humala's term ends in July 2016, Bloomberg News notes. Bloomberg News says that Peru is increasing infrastructure investment as part of the largest fiscal stimulus in 15 years to offset declines in copper and gold revenue. The economy probably expanded 1.5 percent in the first quarter, the Finance Ministry said, after a 1 percent rise in the fourth quarter that was the weakest in five years, Bloomberg News relays. The South American nation issued $1 billion of its 2050 dollar- denominated notes during sales in October and March to finance spending this year and next, Bloomberg News notes. Apart from drawing down its savings, the government plans to finance outlays using loans from multilateral lenders and proceeds from its weekly bond sales in the local market, Mr. Segura said, Bloomberg News relays. The government's cash pile is part of the $62 billion of foreign currency reserves held by the central bank, Bloomberg News notes. Budget, Growth The government plans to post a budget deficit equal to 2 percent of GDP this year after cutting personal and corporate tax and increasing public investment targets, Bloomberg News discloses. Last year's 0.2 percent deficit followed three years of budget surpluses, notes the report. Peru's economy will likely grow between 3.5 percent and 4.5 percent in 2015, fueled by higher copper output, the finance ministry said, Bloomberg News relays. GDP growth likely will be in the lower half of that range though still close to 4 percent, Mr. Segura said, Bloomberg News notes. The economy probably has passed an inflexion point with March and April showing stronger growth, Mr. Segura said, Bloomberg News discloses. Bloomberg News notes that Mr. Segura announced on April 29 a set of measures to inject a further PEN5 billion ($1.6 billion) into the economy this year, including the reduction of prices of fuel, some food imports and allowing one-off worker bonuses. Rates, Currency According to Bloomberg News, the central bank has lowered interest rates three times at its last 10 meetings to stimulate domestic demand. Segura said lower rates have helped revive the economy and any further cuts would be welcome. "Whatever room they may have to use it, at least in our point of view, would be useful," Bloomberg News quoted Mr. Segura as saying. "That's a decision of the central bank." Peru's sol has depreciated 17 percent in the past two years, the least among Latin America's most traded currencies, Bloomberg News relays. The sol is trading at a level close to its fundamental value and will likely continue sliding against the dollar as the U.S. economy strengthens, Mr. Segura said, notes the report. The sol's depreciation has been "orderly" and the central bank "is just avoiding this overshooting," Mr. Segura said, Bloomberg News discloses. "My take is that it will continue sliding against the dollar and strengthening against other currencies." *********** 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 * * *