TCRLA_Public/150518.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, May 18, 2015, Vol. 16, No. 096



COMPASS RE II 2015-1: Fitch Expects to Rate Class 1 Notes 'B+ sf'


BANCO FORTALEZA: Moody's Assigns Global Scale Debt Rating at B2


BRAZIL: Moody's Says Liquidity Risk Rises for Non-Financial Corp.

C A Y M A N  I S L A N D S

ACADEMY LTD: Creditors' Proofs of Debt Due June 11
BLACK ANT: Creditors' Proofs of Debt Due June 1
BLACK ANT MASTER: Creditors' Proofs of Debt Due June 1
CHINCHON HOLDINGS: Creditors' Proofs of Debt Due June 1
GLOBAL SPORTS: Creditors' Proofs of Debt Due June 10

GREY2O OFFSHORE: Creditors' Proofs of Debt Due June 1
LION ADVENTURE: Creditors' Proofs of Debt Due June 2
QS SINGLE: Creditors' Proofs of Debt Due June 11
RUBICON CAYMAN: Creditors' Proofs of Debt Due May 30
STRATEGIC VALUE: Placed Under Voluntary Wind-Up


CHILE: Cabinet Shifts Luring ETF Investors to Discounted Stocks
LATAM AIR: Profit Surprise Boosts Worst-Performing Airline Shares

D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: World Bank Helps Cities Boost Transparency


CHIHUAHUA: Moody's Affirms Ba2 Global Scale Issuer Rating


PERU: Moody's Says Liquidity Risk Up for Non-Financial Cos.

T R I N I D A D  &  T O B A G O

TRINIDAD & TOBAGO: Financial Crisis Plan Coming
TRINIDAD & TOBAGO: Loses $3 Billion in Oil Revenue


* Unemployment Rate in Latin America, Caribbean Could Rise This Yr
* BOND PRICING: For the Week From May 11 to May 15, 2015

                            - - - - -


COMPASS RE II 2015-1: Fitch Expects to Rate Class 1 Notes 'B+ sf'
Fitch Ratings expects to rate the Principal At-Risk Variable Rate
Notes issued by Compass Re II Ltd., an exempted special purpose
insurer in Bermuda, as:

   -- Series 2015-1 Class 1 Principal At-Risk Variable Rate Notes
      expected maturity Dec. 8, 2015; 'B+ sf'; Outlook Stable.

These are zero-coupon notes and will be offered at a discount to
the Original Principal Amount.  The amount will be determined by
the Ceding Insurer at closing.


The Notes provide reinsurance protection to various insurance
company subsidiaries and affiliates of American International
Group, Inc. (AIG; rated 'A-'; Outlook Positive by Fitch).  The
Notes are exposed to Windstorms intersecting with Boundaries along
the U.S. coastline ranging from approximately Brownsville, TX to
Nantucket, MA, as reported by the National Hurricane Center (or
successor organization).  The trigger is a per occurrence event
based on a parametric index.  With a parametric index, noteholders
are exposed to basis risk that the Event Payment Amount may not be
related to the actual claim experience of AIG.

The Windstorm Parameters of latitude and longitude at landfall and
radius determine the Parameters X and Y used in calculating the
Event Index Value.  The Event Index Value is a mathematical
formula that multiplies the Parameter X by the Maximum Sustained
Wind Speed to the Parameter Y exponent.  If the wind speed and
radius are not available at landfall, then the largest of the
reading just before and after making landfall will be used.  If
the Windstorm intersects multiple Boundaries, the respective Event
Index Values will be summed to determine the Event Percentage (or
the amount to be paid to the Ceding Insurer).  There is a
complicated linear interpolation formula, which is easily
traceable in a spreadsheet format.

Noteholders are exposed to principal loss if the Event Index Value
exceeds 100.0 and face total principal loss if the Event Index
Value reaches 150.0.  Assuming maximum sustained wind speeds of
100 mph and a 100 mile radius, the Notes would be triggered if a
wind storm crosses certain parts of New Jersey coastline, but no
other areas along the U.S. coastline.  Increasing the wind speed
to 130 mph while maintaining the 100 mile radius, the Notes could
be vulnerable if landfall occurred to certain parts of the Texas,
Florida, Virginia and New York coastline.  A category 4 hurricane
is defined with wind speeds in excess of 130 mph.

Fitch reviewed data for certain notable events as identified by
the National Hurricane Center data (HURDAT2).  This dataset lists
hurricane events from 1851 to 2014, though information regarding
radius size is nearly non-existent prior to 2004.  For historical
context, Super storm Sandy had an Event Index Value of 25.275,
Hurricane Rita was 21.642 and Hurricane Frances (which had two
landfalls) was 3.034.  Hurricane Camille (1969) had a calculated
Event Index Value of 61.135 based on an assumption that the radius
was 90 miles.  There have been 21 recorded Category 4 and 5 land
falling hurricanes since 1851.

The risk period is the six month period from June 1, 2015 to
Nov. 30, 2015.  The notes may be extended to June 8, 2016 if
certain qualifying events occur, or at the discretion of AIG.
However, the Notes are not exposed to any further catastrophe
events during this extension.  The Notes may be redeemed at any
time due to regulatory or tax law changes or partially by AIG
during the extension period or under certain Early Redemption
Events.  The repayment of the notes to the noteholders occurs
subsequent to any qualified payments to AIG for covered events.
Noteholders have no recourse to AIG.


The rating is based on the evaluation of the natural catastrophe
risk, the counterparty risk of AIG and the credit risk of the
collateral assets.  The natural catastrophe risk represents the
weakest link and currently drives the rating of the Series 2015-1
Class 1 Notes.

The rating analysis in support of the evaluation of the natural
catastrophe risk is highly model-driven.  As with any model of
complex physical systems, particularly those with low frequencies
of occurrence and potentially high severity outcomes, the actual
losses from catastrophic events may differ from the results of
simulation analyses.  Fitch is neutral to any of the major
catastrophe modeling firms that is selected by the issuer to
provide the modeling analysis, and thus Fitch did not include any
explicit margins or qualitative haircuts to the probability of
loss metric provided by the modeling firm.

AIR Worldwide Corporation (AIR), one of the leading natural
catastrophe modelers for the industry, simulated 10,000 wind storm
events incorporating the Event Index Value (AIR also acts as the
calculation agent if an actual wind storm occurs).  Loss estimates
were calculated using version 16.0 of the AIR U.S.  Hurricane
Model as implemented in Touchstone 2.0.2.  The model produced an
attachment probability of 2.41% which corresponds to an implied
rating of 'B+' according to our calibration table as found in
Fitch's Insurance Linked Securities Methodology.  A stress test
using the Warm Sea Surface Temperature Conditioned Catalog had an
attachment probability of 2.67% which would not alter the implied
rating.  The expected loss is 1.77% and 1.94%, respectively, for
the two catalogs.

AIR is expected to release an updated version of Touchstone
(Touchstone 3.0) in the summer of 2015.  There was no indication
if this model change would have a positive or adverse effect on
the attachment probability.  Results from other possible modelers
or from AIG were not provided.

The ceding insurer subsidiaries of AIG (IDR: 'A-' Outlook
Positive) are responsible for making a Premium Payment within ten
business days following the Issuance Date such that the sum of
that payment plus the proceeds received on the Notes offered
equals the Original Principal Amount.  These subsidiaries are also
responsible for Additional Premiums that are used to pay certain
expenses of the Issuer.  AIG has been designated as a systemically
important financial institution and identified as a global
systemically important insurer.  Thus, noteholders are exposed to
the counterparty risk of the AIG ceding insurers for this payment
or potential regulatory restrictions imposed on AIG or its ceding

Proceeds from this issuance will be held in a reinsurance trust
account and used to purchase high-credit-quality money market
funds meeting defined eligibility criteria, otherwise funds will
be held in cash.  Investment yields generated from these permitted
investments are passed directly to noteholders and may increase
the Repayment Amount above the Notes Offered to note holders.
Noteholders are exposed to possible market value risk if the net
asset value of a money market fund falls below $1.00.  Finally,
certain actions may be required if the reinsurance trust account
is invested in money market funds and FATCA is deemed to apply in
late 2016.


This rating is sensitive to the occurrence of a qualifying
event(s), the counterparty rating of AIG and the rating on the
assets held in the reinsurance trust account.

If qualifying covered events occur that cause the Event Index
Value to exceed the Attachment Level, Fitch will downgrade the
notes reflecting an effective default and issue a Recovery Rating.
To a lesser extent, the notes may be downgraded if the money
market funds should "break the buck" or the AIG ceding insurers
fail to make timely premium payments.

Fitch's expected rating is based on a review of a draft
Confidential Offering Circular and Confidential Offering Circular
Supplement No. 1 (dated May 6, 2015), a Rating Agency Presentation
(dated May 6, 2015) and Results of AIR Modeling (dated May 4,
2015) and selected calculations of the Event Index Value.  The
final rating is contingent upon receipt of signed legal documents
pertinent to this transaction that do not materially change what
has currently been reviewed.  Any changes could lead Fitch to an
alternative rating or inability to rate the note.


BANCO FORTALEZA: Moody's Assigns Global Scale Debt Rating at B2
Moody's Latin America Agente de Calificacion de Riesgo assigned B2
global scale and national scale local-currency ratings to
Banco Fortaleza S.A. (Fortaleza)'s new senior debt issuance of Bs.
35 million. The ratings are on review for upgrade.

The following ratings were assigned to Banco Fortaleza S.A.:

  -- Bs. 35 million senior debt issuance:

  -- Long-Term Global Local Currency Debt Rating: B2

  -- Long-Term Bolivia National Scale Local Currency Debt Rating:

The ratings assigned to Fortaleza's new issuance are the same as
those assigned to its outstanding debt. Those ratings were placed
on review for possible upgrade on March 17th, 2015, following the
publication by Moody's Investors Service of its updated bank
rating methodology.

Moody's ratings reflect Fortaleza's relatively strong
capitalization, stable funding profile, and adequate liquidity,
offset by rising asset risk and increasing profitability
pressures. The review for upgrade will consider the bank's
capacity to successfully carry out its strategy of achieving a
disciplined loan growth and at the same time maintaining good
asset quality, profitability and capital metrics.

Fortaleza has a short track record as a commercial bank and a
limited market share, with a rapidly growing loan portfolio highly
concentrated on microfinance lending. Although Fortaleza's asset
quality indicators lag the average for the Bolivian banking
system, the bank's non-performing loan ratio remains manageable at
2.6% as of March 2015.It is currently working to shift its
portfolio mix towards small and medium sized enterprises (SMEs).
While greater diversification would ultimately be credit positive,
during the transition period, this shift in strategy exposes the
bank to the risk of a deterioration in asset quality.

Despite rapid growth, Fortaleza's capital ratios remain strong,
with a Tier 1 ratio of 12.1% by March 2015. The bank has
reinvested 87.5% of its available earnings over the past year to
support its expansion plans. Management has committed to continue
this reinvestment policy to sustain the bank's growth prospects.

Fortaleza's earning generation capacity has improved lately as a
result of an increase in non-interest income, which allowed the
bank to post a return on average assets of 1.33% in 2014, higher
than the banking system average of 1.23%. However, bottom line
earnings continue to be challenged by poor operating efficiency,
as the bank's cost to income ratio was nearly 80% as of March
2015. Moreover, Moody's expect profitability to decline going
forward due to regulatory changes that will reduce banks' interest
margins and increase competition further. The regulatory
environment which will affect lenders' earnings power and asset
quality is reflected in Bolivia's weak macro profile.

The bank is mainly core deposit funded and shows good liquidity
indicators, as reflected in its ratio of liquid assets to short
term liabilities of almost 85% as of March 2015.

Banco Fortaleza S.A. is headquartered in La Paz, Bolivia, and it
had assets of Bs. 1.91 billion and equity of Bs. 212 million as of
March 2015.


BRAZIL: Moody's Says Liquidity Risk Rises for Non-Financial Corp.
Liquidity risk has increased for Brazilian non-financial
corporates over the past year, though funding should remain
adequate through mid-2016, Moody's Investors Service says in a new
report. Macroeconomic deterioration, lower commodity prices and
tighter access to the capital markets have seen the results of
many companies lagging.

Moody's new report, "Companies Strive to Control Debt as Economy
and Currency Stumble," summarizes the liquidity risk of the 47
non-financial, non-utility Brazilian corporate issuers rated B3
and above as of December 2014.

"The Brazilian macroeconomic environment has severely eroded since
2014, with inflation accelerating and employment rate looking more
fragile," says Assistant Vice President-Analyst, Erick Rodrigues.
"Along with a sharp drop in the confidence of consumers and
investors, these issues raise doubts about the country's medium-
term growth prospects, with companies exposed to the domestic
economy and commodity prices the most vulnerable."

The percentage of Moody's-rated Brazilian companies with high
liquidity risk went to 32% from 19% between 2013 and 2014, says

The oil and gas, protein and agriculture industries together
represent just over half of debt maturing by mid-2017, with oil
giant Petrobras accounting for about a third of corporate debt
maturing by that date and protein producers BRF, JBS and Marfrig
Global Foods accounting for most of the debt coming due in the
protein and agriculture sector.

"About a third of the Brazilian companies we reviewed have high
funding risk due to weak cash coverage of short-term debt, a lack
of committed credit facilities or likely low cash flow over the
next one to two years," Rodrigues says. "Nine companies currently
have particularly weak liquidity profiles, including Brasil
Pharma, Brookfield Incorporaes and PDG Realty."

The Brazilian real is likely to remain weak against the US dollar
through at least early 2016, offering a competitive advantage to
some export-dependent businesses, Moody's new report says. But the
weak real will also force Petrobras to spend more to import the
oil necessary to produce gasoline, diesel and other fuels. About
60% of Brazilian companies' total outstanding debt comes from
local bank lines or debentures, and the remainder from the
international capital markets.

C A Y M A N  I S L A N D S

ACADEMY LTD: Creditors' Proofs of Debt Due June 11
The creditors of Academy Ltd. are required to file their proofs of
debt by June 11, 2015, to be included in the company's dividend

The company commenced wind-up proceedings on April 21, 2015.

The company's liquidator is:

          Morval Bank & Trust Cayman Ltd.
          Telephone: +1 (345) 949-9808
          P.O. Box 30622 Grand Cayman KY1-1203
          Cayman Islands

BLACK ANT: Creditors' Proofs of Debt Due June 1
The creditors of The Black Ant Credit Fund Limited are required to
file their proofs of debt by June 1, 2015, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on March 26, 2015.

The company's liquidator is:

          Trevor Kensit
          56 Eaton Mews South
          London, SW1W 9UR
          United Kingdom
          c/o Deborah Poole, Appleby
          P.O. Box 1350 Grand Cayman KY1-1108
          Cayman Islands

BLACK ANT MASTER: Creditors' Proofs of Debt Due June 1
The creditors of The Black Ant Credit Master Fund Limited are
required to file their proofs of debt by June 1, 2015, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on March 26, 2015.

The company's liquidator is:

          Trevor Kensit
          56 Eaton Mews South
          London, SW1W 9UR
          United Kingdom
          Deborah Poole, Appleby
          P.O. Box 1350 Grand Cayman KY1-1108
          Cayman Islands

CHINCHON HOLDINGS: Creditors' Proofs of Debt Due June 1
The creditors of Chinchon Holdings are required to file their
proofs of debt by June 1, 2015, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on April 21, 2015.

The company's liquidators are:

          Susan Craig
          Lorna Carroll
          CDL Company Ltd.
          P.O. Box 31106 Grand Cayman KY1-1205
          Cayman Islands

GLOBAL SPORTS: Creditors' Proofs of Debt Due June 10
The creditors of Global Sports Opportunities Ltd are required to
file their proofs of debt by June 10, 2015, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on April 17, 2015.

The company's liquidator is:

          Nicola Cowan
          DMS Corporate Services Ltd
          Telephone: (345) 946 7665
          Facsimile: (345) 949 2877
          dms House, 2nd Floor
          P.O. Box 1344 Grand Cayman KY1-1108
          Cayman Islands

GREY2O OFFSHORE: Creditors' Proofs of Debt Due June 1
The creditors of Grey2o Offshore Fund, Ltd are required to file
their proofs of debt by June 1, 2015, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on April 14, 2015.

The company's liquidator is:

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

LION ADVENTURE: Creditors' Proofs of Debt Due June 2
The creditors of Lion Adventure Cayman Limited are required to
file their proofs of debt by June 2, 2015, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on April 21, 2015.

The company's liquidator is:

          Stuarts Walker Hersant Humphries
          Telephone: (345) 949 3344
          Facsimile: (345) 949 2888
          P.O. Box 2510 Grand Cayman KY1-1104
          Cayman Islands

QS SINGLE: Creditors' Proofs of Debt Due June 11
The creditors of QS Single Managers SPC are required to file their
proofs of debt by June 11, 2015, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on April 20, 2015.

The company's liquidator is:

          Peter Goulden
          Mourant Ozannes Cayman Liquidators Limited
          Reference: NDL
          Telephone: (+1) 345 949 4123
          Facsimile: (+1) 345 949 4647; or

          Mourant Ozannes Cayman Liquidators Limited
          Reference: Peter Goulden
          Telephone: (+1) 345 949 4123
          Facsimile: (+1) 345 949 4647
          94 Solaris Avenue, Camana Bay
          P.O. Box 1348 Grand Cayman KY1-1108
          Cayman Islands

RUBICON CAYMAN: Creditors' Proofs of Debt Due May 30
The creditors of Rubicon Cayman Holdings are required to file
their proofs of debt by May 30, 2015, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on April 20, 2015.

The company's liquidator is:

          Stuart Sybersma
          c/o Mike Green
          Deloitte & Touche
          Citrus Grove Building, 4th Floor
          Goring Avenue, George Town KY1-1109
          Cayman Islands
          Telephone: +1 (345) 814 2223
          Facsimile: +1 (345) 949 8258

STRATEGIC VALUE: Placed Under Voluntary Wind-Up
On April 8, 2015, the sole shareholder of Strategic Value Partners
Ltd. 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:

          c/o Justin Savage
          Telephone: (345) 815 1816
          Facsimile: (345) 949-9877
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9007
          Cayman Islands


CHILE: Cabinet Shifts Luring ETF Investors to Discounted Stocks
Eduardo Thomson at Bloomberg News reports that Chile has been
luring investors scouring for cheap Latin American stocks over the
past month.  Now, a new finance minister with Wall Street
credentials is giving another reason for buyers to double down on
their bets, according to Bloomberg News.

Bloomberg News notes that the iShares MSCI Chile Capped exchange-
traded fund has received $57 million in funds without a single day
of outflows since April 2.  In the past week, the ETF had inflows
of $13 million, more than any other fund in the region, according
to data compiled by Bloomberg.

More than half of the past week's inflows came on the day that
Rodrigo Valdes, a former economist for Barclays PLC and BTG
Pactual, was appointed finance minister to replace Alberto Arenas,
who had been at loggerheads with local business executives over
the government's economic agenda, Bloomberg News relays.  This
move has investors anticipating measures that could boost economic
expansion, according to Bradford Jones, who manages $150 million
in Latin American stocks at Sagil Asset Management, the Bloomberg
News discloses.

"We're very positive on the appointment," Jones said in a phone
interview from London.  "We expect this will improve confidence
both in Chile and among international investors," Bloomberg News
quoted Mr. Jones saying.

President Michelle Bachelet's tax and labor reforms had been
weighing negatively on the market, Mr. Jones said, Bloomberg News

The IPSA benchmark stock index traded at 18.2 times earnings, or
10 percent below its five-year average valuation on May 13,
Bloomberg News discloses.  The ratio was at 16.4 times on March
10, the lowest since 2011.

LATAM AIR: Profit Surprise Boosts Worst-Performing Airline Shares
Eduardo Thomson at Bloomberg News reports that Latam Airlines SA
gained the most in almost five years after reporting better-than-
forecast operating profit amid a push to reduce costs.

The world's worst-performing airline stock in three years climbed
7.3 percent to CPL5,786.2 on May 16 at the close in Santiago, its
biggest increase since August 2010, according to Bloomberg News.
The rally was the biggest on Chile's benchmark IPSA index, which
increased 0.9 percent, Bloomberg News relates.

Bloomberg News discloses that the carrier reported that its
operating margin widened to 8.1 percent in the first quarter from
3.5 percent a year earlier as operating costs fell 16 percent and
crude oil prices declined.  Unlike some rivals, it hasn't lowered
margin estimates, Citi-Banchile analysts Stephen Trent and Fernan
Gonzalez said in a research note, Bloomberg News discloses.

"These very strong results are also inconsistent with the market's
mysteriously cautious view on the shares," they wrote, reiterating
a buy recommendation, Bloomberg News relays.

While shares of Latam's peers have posted a 30 percent average
annual gain in dollars in the past three years, Santiago-based
Latam posted a loss of 23 percent, Bloomberg News notes.

Latam's reported operating profit of $233 million, compared with
the $214 million average forecast of economists, Bloomberg News
relays.  The 17 percent depreciation of Brazil's real in the first
quarter led to a net loss of $40 million for Latam Airlines,
Bloomberg News adds.

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.

As reported in the Troubled Company Reporter-Latin America on
April 6, 2015, 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)'.

D O M I N I C A N   R E P U B L I C

* DOMINICAN REPUBLIC: World Bank Helps Cities Boost Transparency
Dominican Today reports that Dominican Republic's Finance Ministry
and the World Bank disclosed the launch of a financial management
and municipal information system as part of the Caribbean
country's thrust to improve accountability and transparency in its

The Finance Minister Simon Lizardo Mezquita launched the Municipal
Development Project (PRODE) financed by the World Bank in a
ceremony at the Central Bank, where he pledged a "strong
commitment to support the sustainability of the effort to
consolidate and strengthen the management and accountability of
public funds," according to the report.

"The Ministry of Finance assumes this important accompaniment to
form part of the efforts to consolidate management accountability,
oversight of public resources and promote the strengthening of
municipalities through higher levels of governance and
transparency," the report quoted Mr. Mezquita as saying.

The World Bank said the Integrated Financial Municipal Management
System (Municipal IFMS) is a cutting-edge software which allows
the participating municipalities to record data online, publish
data user-friendly, and allow access to information monitoring
agents to inform about the local governments' financial
management, the report discloses.

"With the launch of the municipal IFMS, we expect councils and
other municipal bodies to use this tool to improve the quality of
municipal services and accountability to the governing bodies in
an expeditious, friendly, efficient and reliable manner," said
Franklin Labor, head of Territorial Planning and Development
(DGODT) of the Economy, Planning and Development Ministry's
(MEPYD) PRODEM project, the report notes.

"The initiative is based on the cooperation that already exists
between bilateral and multilateral agencies members of the
Interagency Cluster for Governance and Public Finance, and
prominent members of civil society and local authorities," Mr.
Labor said, noting that it's also in keeping with pillar 1 of the
National Development Strategy (END2030) on strengthening financial
management, the report adds.

Among the pilot municipalities figure:

   -- Yamasa,
   -- Bayaguana,
   -- Pueblo Viejo,
   -- Las Matas de Farfan,
   -- Padre las Casas,
   -- Sabana Grande de Boya,
   -- Tamayo, Polo,
   -- Enriquillo,
   -- La Cienaga, and
   -- Paraiso.

"The main objective of the initiative is part of the Municipal
Development Project (PRODEM) funded by the World Bank, to
strengthen the management of local governments and improve
municipal services," the statement said, the report relays.

Among the speakers in the launch were Ramon Sarante, director of
PAFI/SIGEF, and Kelvin Garcia of ONETEL KDK, company that will
implement the Municipal IFMS, the report says.

The report discloses that the Public Administration minister Ramon
Ventura Camejo, Economy Deputy Planning (MEPYD) minister Juan
Monegro, World Bank representative McDonald Benjamin and World
Bank Senior Financial Management specialist Maritza Rodriguez also
attended the launch.


CHIHUAHUA: Moody's Affirms Ba2 Global Scale Issuer Rating
Moody's de Mexico affirmed the (Mexico National Scale) and
Ba2 (Global Scale, local currency) issuer ratings of the state of
Chihuahua. The outlook on the ratings remains negative.

The affirmation of the Ba2/ issuer ratings of the state of
Chihuahua takes into consideration some improvement in the state's
consolidated financial results. The negative outlook of the
ratings reflects that the state continues to face challenges on
the expenditure side, which could lead to a deterioration of
liquidity levels and increases to debt.

In 2013 and 2014, Chihuahua's cash financing requirements were
equivalent, on average, to -3.7% of total revenues, compared to -
11.2% registered in 2012. The improvement was driven by measures
implemented to increase own-source revenues and control
expenditures and were undertaken to comply with the federal
government's rationalization plan for Chihuahua. Own-source
revenues increased as a result of higher net revenues transferred
from the state's toll roads and an increase of salary tax.
Chihuahua also benefited from a steady growth of federal
transfers, leading to a compound annual growth rate of total
revenues equivalent to 10% during the 2010-2014 period. Given the
state's operating controls and decrease of capital expenditures,
total expenditures grew by a CAGR of 9%. Going forward, Moody's
forecasts that Chihuahua will continue to post lower cash
financing deficits as expenditure measures consolidate.

As a result of the continuation of cash financing deficits and a
decrease in total revenues in 2014, the state's debt burden has
continued to increase. After the state restructured its debt, net
direct and indirect debt was equivalent to 45.1% of total revenue
at the end of 2014 compared to a 41.9% registered in 2013. Moody's
anticipates that debt levels will remain at around 45% of total
revenues, a high level compared to its rated-peers, given that
Chihuahua has to comply with a debt limit established by Banobras
(Federal Government's development bank). Chihuahua's net direct
and indirect debt does not include bonds backed by revenues of the
toll roads, which were equivalent to MXN 15.6 billion (outstanding
amount) as of December 2014, as the gross revenues from the toll
roads, which are not included in Chihuahua's revenues, are
sufficient to pay debt service.

The negative outlook reflects Moody's view that Chihuahua
continues to face challenges which could lead to a financial
deterioration. As liquidity levels have improved largely due to
one-time measures, the continued presence of cash financing
deficits will apply pressure to these levels. Moody's will closely
monitor the state's progress as it continues to follow the federal
government's rationalization plan to ensure that the improvements
are sustainable.

Given the negative outlook on the ratings, Moody's does not expect
upward pressure on the ratings in the near term. If the state of
Chihuahua demonstrates that it can continue to register low cash
financing deficits, leading to a stabilization of debt levels and
maintenance of positive liquidity position, this could lead to the
stabilization of the outlook. A downgrade of the ratings would be
likely if Chihuahua fails to implement measures for cutting
expenditures resulting in higher than expected cash financing
requirements, further increases in debt levels and a deterioration
of its liquidity position.

The methodology used in this rating was Regional and Local
Governments published in January 2013.

The period of time covered in the financial information used to
determine state of Chihuahua's rating is between Jan. 1, 2010 and
Dec. 31, 2014.


PERU: Moody's Says Liquidity Risk Up for Non-Financial Cos.
Liquidity risk has increased for Peruvian non-financial, non-
utility companies over the past year, Moody's Investors Service
says in a new report. Peru's mining-dependent economy looks set
for a partial rebound in 2015, but growth will be well off the
brisk pace of a couple of years ago, while the depreciation of the
nuevo sol is hurting companies' credit quality.

Moody's new report, "Liquidity Risk Increasing, but Most
Maturities are Still Far in the Future," looks at the liquidity
risk of the 16 non-financial, non-utility Peruvian corporate
issuers rated by Moody's as of 30 April 2015.

"At the end of 2014, 69% of the Peruvian companies we reviewed had
high refunding risk, in line with the previous year, while their
consolidated short-debt coverage decreased to 1.0 times from 1.7
times," says Vice President -- Senior Analyst, Barbara Mattos.
"Meanwhile, the economy expanded just 2.4% last year, well off the
5.8% growth seen in 2013."

Eleven of the 16 Peruvian companies had high refunding risk at the
end of last year, with some combination of insufficient cash to
cover short-term debt maturities, negative free cash flow or a
lack of committed credit facilities to meet maturities through
mid-2017, Mattos says. Nevertheless, none have significant
refinancing peaks until 2019, and for most there are also
mitigating circumstances, including good capital market access,
support from parent entities and solid operations.

Peruvian corporate debt issuance reached $1.8 billion in 2014,
only a slight decline from $2.2 billion in 2013. Hochschild,
Minsur, InRetail Consumer and Union Andina de Cementos all issued
bonds last year.

Meanwhile, the depreciation of the nuevo sol is hurting the credit
quality of Peruvian non-financial corporates. "Around 67% of the
companies' mostly unhedged debt is denominated in US dollars,
while they earn most of their income in local currency," Mattos
says. "While a weaker local currency increases the cost of
servicing debt and leverage, expansion abroad, dollarized
commodity prices and export-heavy business models all ease this
risk, particularly for mining companies."

T R I N I D A D  &  T O B A G O

TRINIDAD & TOBAGO: Financial Crisis Plan Coming
Clint Chan Tack at Trinidad and Tobago Newsday reports that
Trinidad and Tobago government is working on a national financial
crisis management plan to facilitate electronic transactions
conducted at various State departments.  Finance Minister Larry
Howai made these announcements at the InfoLink Services Limited
conference at the Hyatt Regency, Port-of-Spain.

Mr. Howai said government is aware of the importance of domestic
financial system in lubricating the flow of financial transactions
between consumers and producers/retailers, and has begun the
process of putting contingency measures in place in the event of
any future financial crisis, according to Trinidad and Tobago

"To this end a National Financial Crisis Management Plan for
Trinidad and Tobago is currently under development. The plan seeks
to provide an effective regime for the orderly resolution to a
crisis faced by any of the financial institutions deemed
systemically important and regulated by the Central Bank," the
report quoted Mr. Howai as saying.

The report discloses Mr. Howai explained the current low interest
rate environment has facilitated not only households taking on
higher levels of debt, but has also created fertile ground for
large non-financial retail store chains to lend to riskier
households.  "One can surmise that as these retail stores compete
for market share in an unregulated environment, there may be
greater incentives for these retail stores to underprice risk,",
the report quoted Mr. Howai as saying.

Mr. Howai added these issues are being addressed because "if these
activities remain unregulated they can pose a systemic risk to the
domestic financial system."  Mr. Howai also expected that the
"shadow banking" industry will continue to grow to fill much of
the gap in financial inclusion faced by consumers, the report

The report relays that Mr. Howai said, "These unregulated business
which are not financial organizations but which carry out business
of a financial nature need to be quickly identified and the
necessary regulatory framework put in place to bring them under
the jurisdiction of a regulator."  Mr. Howai added the business
models used by these shadow banking businesses need to be
carefully studied to ascertain the risk they pose to the domestic
financial system, the report says.

In a statement later in the House, Mr. Howai said regulations laid
last week in the House will permit electronic transactions at
government offices, the report notes.  Responding to a question
from Chaguanas West MP Jack Warner, Mr. Howai said it would take
between 18 to 24 months to put things in place to facilitate these
transactions, the report discloses.

Recalling this initiative started in 2008 under the then People's
National Movement (PNM) government, Mr. Howai said it is
unacceptable that Government to date has not significantly
transformed its internal processes to facilitate the use of
electronic fund transfers (EFTs), the report notes.

According to the report, Mr. Howai explained that the regulations
will give the Central Bank "the responsibility for the oversight
of payment systems."

Mr. Howai also indicated that the Financial Institutions Act will
give him the authority to make regulations which govern the
transfer of funds by electronic means; prudential criteria and the
oversight of payment systems, after receiving recommendations from
the Central Bank, the report adds.

TRINIDAD & TOBAGO: Loses $3 Billion in Oil Revenue
Clint Chan Tack at Trinidad and Tobago Newsday reports that this
country lost approximately TT$3 billion in revenue as a result of
the fall in global oil prices from last September to April.
Minister of State in the Ministry of Finance, Rudy Indarsingh,
made this disclosure as he responded to an urgent question posed
by Chaguanas West MP Jack Warner in the House of Representatives.

Making references to the figures obtained by the ministry's inland
revenue division, Mr. Indarsingh said the overall drop in revenue
was estimated to be TT$2,910,116,010, according to Trinidad and
Tobago Newsday reports.  Mr. Indarsingh told the House this figure
was the total variance reported for supplemental petroleum taxes;
petroleum profit taxes and the unemployment levy from October 2014
to April 2015, the report says.

Those figures were TT$366,144,337; TT$2,359,413,730 and
TT$194,557,943 respectively.  Mr. Indarsingh said notwithstanding
this loss in revenue, Government will proceed with its development
plans as previously outlined by Prime Minister Kamla Persad-
Bissessar, the report notes.

The report discloses, responding to another question from Warner,
Mr. Indarsingh reiterated that Government does not plan to write
any formal letter of complaint to Moody's Investors Services
objecting to its downgrading of credit ratings for the Government,
First Citizens Bank, Petrotrin and the National Gas Company (NGC).

The report relays that Mr. Indarsingh recalled that Finance
Minister Larry Howai previously indicated that "verbal
communication and representation" were made to Moody's prior to
the downgrade.  In response to a third question from Warner about
an unoccupied property listed in the 2014 Auditor General's report
for which TT$26.6 million in rent was paid from December 12, 2012
to September 30, 2014, Mr. Indarsingh indicated the landlord for
that property was GV Holdings, the report notes.

Stating the premises are located at Lot #19, 29 and 29A Estate
Trace in Barataria, Mr. Indarsingh said the lease was for a period
of three years of approximately 117,241 square feet of office
space with five floors, the report discloses.

Mr. Indarsingh explained the main reason for the delay in
occupation was that the building had to be customized and
outfitted to meet user specifications, the report relays.  Noting
the building was leased by the Personnel Department and not the
Finance Ministry, Mr. Indarsingh said, "The Personnel Department
notes the concern of the Auditor-General on this matter. However,
various steps in the process are outside of the control of the
Department," the report adds.

Mr. Indarsingh added the department was seeking to have the matter
finalized, the report relays.


* Unemployment Rate in Latin America, Caribbean Could Rise This Yr
The Daily Observer reports that the unencouraging economic outlook
for the current year will likely prompt a mild increase in the
regional unemployment rate to 6.2% from the 6.0% registered in
2014, according to estimates released by the Economic Commission
for Latin America and the Caribbean (ECLAC) and the International
Labor Organization (ILO).

In a new edition of their joint publication The Employment
Situation in Latin America and the Caribbean, both institutions
indicate that the 1% average expansion in economic activity
forecast for the region will not be enough to reverse the
deceleration process that began in 2011, according to the Daily

The stagnation of gross domestic product (GDP) per capita should
weaken labor demand and, therefore, the creation of salaried
employment, the report notes.  For that reason, a decline in the
region's urban employment rate -- which refers to the relationship
between the employed population and the total number of people who
are of working age -- is forecast for a third consecutive year,
the report relates.

The report says that on a regional level the decline in labor
participation -- which is to say, the proportion of the working-
age population that is active in the workforce, whether employed
or unemployed -- seen in 2014 is not expected to be repeated with
the same intensity in 2015, which, coupled with a decrease in the
employment rate, should lead to higher open unemployment, similar
to the levels seen in 2013, the report relays.

"The labor market situation in 2015 is not expected to be
particularly conducive to progress in reducing poverty and
inequality," Alicia Barcena, ECLAC's executive secretary, and
Elizabeth Tinoco, ILO regional director for Latin America and the
Caribbean, state in the document's prologue, the report discloses.

In effect, ECLAC-ILO's document indicates that during most of the
last decade and at the beginning of this current decade, Latin
America and the Caribbean made important advances in poverty
reduction and income distribution, in a global context
characterized by growing inequality, the report notes.

The report discloses that these improvements were due to the labor
market's positive trends, such as the robust creation of salaried
employment and the reduction of gaps in labor income.  Other
contributing factors included public policies on labor matters
(minimum wage, formalization, inspection) as well as non-labor
matters (expansion of social protection systems and education),
the report relays.

The first part of ECLAC-ILO's document analyzes the region's labor
performance in 2014 and attributes the decline in the unemployment
rate seen last year to the atypical behavior of labor markets in
Argentina, Brazil and Mexico, more specifically to the steep fall
in their labor participation rates, the report says.

In its second section, ECLAC-ILO's document examines the expansion
of social protection in the context of high degrees of informality
in the region, the report discloses.  It contends that, from a
rights perspective, the universalization of social protection is
essential to helping build societies where equality is the end-
goal of development strategies, the report notes.

The United Nations organizations indicate that to guarantee
universal access it is necessary to integrate contributory and
non-contributory components in social protection systems, which
entails significant challenges, above all in terms of
institutional design and financing, the report adds.

* BOND PRICING: For the Week From May 11 to May 15, 2015

Issuer Name     Cpn   Bid Price Maturity Date Country    Curr
-----------     ---   --------- ------------- -------    ----
PDVSA            8.5     56.25   11/2/2017      VE       USD
PDVSA            8.5     66.7    11/2/2017      VE       USD
PDVSA            5.25    42.09   4/12/2017      VE       USD
Int'l Bond       12.75   44.7    8/23/2022      VE       USD
Transocean Inc    6.8    73.8    3/15/2038      KY       USD
PDVSA            12.75   47.52   2/17/2022      VE       USD

Int'l Bond       11.95   41.95    8/5/2031      VE       USD
CSN Islands

XII Corp          7      70.25                  BR       USD
Banco Mercantil
do Brasil SA      9.62    45.5    7/16/2020     BR       USD
Banco do
Brasil SA/Cayman  6.25    68.5                  KY       USD
Transocean Inc    3.8     73.8    10/15/2022    KY       USD
MIE Holdings
Corp              7.5     60.12    4/25/2019    HK       USD
PDVSA             9       39.5    11/17/2021    VE       USD
Anton Oilfield    7.5     68.85   11/6/2018     CN       USD
PDVSA             5.37    31.84    4/12/2027    VE       USD
PDVSA             6       33.15    5/16/2024    VE       USD
PDVSA             6       32.24   11/15/2026    VE       USD
PDVSA             9.75    38.25    5/17/2035    VE       USD
Schahin II
Finance Co
SPV Ltd           5.87    60.5     9/25/2022    KY       USD
Odebrecht Oil
& Gas
Finance Ltd       7       54.5                  KY       USD
Kaisa Group
Holdings Ltd     10.25    57       1/8/2020     CN       USD
Int'l Bond       11.75    41.75   10/21/2026    VE       USD
Offshore Group
Investment Ltd    7.5     57.27   11/1/2019     KY       USD
PDVSA             5.5     31.5     4/12/2037    VE       USD
PDVSA             5.12    60.25   10/28/2016    VE       USD
Kaisa Group
Holdings Ltd      9       51.5     6/6/2019     CN       USD
Cimento Tupi SA   9.75    40       5/11/2018    BR       USD
Kaisa Group
Holdings Ltd      6.87    52.12    4/22/2016    CN       CNY
Group Ltd         7.45    53.75    9/25/2019    CN       USD
Int'l Bond        7.75    36.75   10/13/2019    VE       USD
Int'l Bond        9.37    37.9     1/13/2034    VE       USD
Int'l Bond        6       34.75    12/9/2020    VE       USD
Gildemeister SA   8.25    40.25     5/24/2021   CL       USD
Bioenergia SA     9.25    29.75     1/24/2020   BR       USD
Gol Finance       8.75    68.4                  BR       USD
MIE Holdings
Corp              6.87    68        2/6/2018    HK       USD
Int'l Bond        9       37.1      5/7/2023    VE       USD
Int'l Bond        7       40.95    12/1/2018    VE       USD
Mining Corp       8.87    70        3/29/2017   MN       USD
USJ Acucar
e Alcool SA       9.875   45        11/9/2019   BR       USD
Int'l Bond        9.25    37.4       5/7/2028   VE       USD
Gildemeister SA   6.75    34         1/15/2023  CL       USD
Offshore Group
Investment Ltd    7.12    53.95      4/1/2023   KY       USD
de Caracas        8.5     37         4/10/2018  VE       USD
Kaisa Group
Holdings Ltd      8       66.2      12/20/2015  CN       CNY
Int'l Bond       13.62    68         8/15/2018  VE       USD
Alsacia SA        8       67.03     12/31/2018  CL       USD
Polarcus Ltd      2.87    51.40      4/27/2016  AE       USD
China Precious
Metal Resources
Holdings          7.25     49.83      2/4/2018  HK       HKD
SMU SA            7.75     71.8       2/8/2020  CL       USD
NQ Mobile Inc     4        65        10/15/2018 CN       USD
Holdings Ltd      13.25    63.37      3/4/2018  HK       USD
Schahin II
Finance Co
SPV Ltd           5.87     60.715     9/25/2022 KY       USD
BA-CA Finance
Cayman Ltd        1.21     61.625               KY       EUR
Finance Ltd       8.25     74.35      4/25/2018 KY       BRL
BCP Finance Co    2.10     56.375               KY       EUR
Polarcus Ltd      8        25.5       6/7/2018  AE       USD
Properties Corp   9.5      38.5       7/3/2017  PA       USD
PSOS Finance
Ltd              11.75     73.25      4/23/2018 KY       USD
BA-CA Finance
Cayman 2 Ltd      0.69     60.5                 KY       EUR
Polarcus Ltd      8.73     25         7/8/2019  AE       NOK
Inversora de
de Buenos
Aires SA IEBA     6.5      44.5       9/26/2017 AR       USD
Bioenergia SA     9.25     30.35      1/24/2020 BR       USD
PDVSA             8.5      66.6      11/2/2017  VE       USD
MIE Holdings
Corp              7.5      69.5       4/25/2019 HK       USD

Banco do Brasil
SA/Cayman         6.25     67.25                KY       USD
Partners Inc      11.5     73.5      11/13/2018 CA       USD
PDVSA              6       32         5/16/2024 VE       USD
International Ltd  5.75     0.326               KY       EUR
USJ Acucar
e Alcool SA        9.87    46        11/9/2019  BR       USD
Odebrecht Oil
& Gas Finance
Ltd                7       54                   KY       USD
PDVSA             12.75    53.25     2/17/2022  VE       USD
Gildemeister SA    6.75    34.5      1/15/2023  CL       USD
Mining Corp        8.87    70.25     3/29/2017  MN       USD
Gildemeister SA    8.25    36.31     5/24/2021  CL       USD
PDVSA              9       37.12    11/17/2021  VE       USD
Int'l Bond         13.62   61.88     8/15/2018  VE       USD
Anton Oilfield
Group/Hong Kong     7.5    70       11/6/2018   CN       USD
EDNAR              10.5    84.5     10/9/2017   AR       USD
Cimento Tupi SA     9.75   48        5/11/2018  BR       USD
Honghua Group Ltd   7.45   54.75     9/25/2019  CN       USD
Banco Mercantil
do Brasil SA        9.625  42.625    7/16/2020  BR       USD
PDVSA               9.75   38.7      5/17/2035  VE       USD
EDNAR               9.75   74       10/25/2022  AR       USD
Petroleum Corp      9      25.05     5/31/2017  US       CAD
CSN Islands
XII Corp            7      70.47                BR       USD
Gol Finance         8.75   65.875               BR       USD
Argentina Bocon    21.875  73.73      1/4/2016  AR       ARS
Properties Corp      9.5   37.75      7/3/2017  PA       USD
TICC Bond            5.25  55.36     3/21/2019  VE       USD
SMU SA               7.75  72.44     2/8/2020   CL       USD
de Tucuman
Argentina            0.40   42.7     9/5/2015   AR       USD
Ruta del Bosque
SA                   6.3     65.67   3/15/2021  CL       CLP
Cia Cervecerias
Unidas SA            4       53.32  12/1/2024   CL       CLP
Cia Sud
de Vapores SA        6.4     54.31  10/1/2022   CL       CLP
del Chaco            4       68.01  12/4/2026   AR       USD
Talca Chillan
Concesionaria SA     2.75    48.77  12/15/2019  CL       CLP
Int'l Bond           7.65    34.5    4/21/2025  VE       USD
Int'l Bond           7       35      3/31/2038   VE      USD
Decimo Primer
de Bonos de
Pres                 4.54    66.5   10/25/2041   PA      USD
Int'l Bond          13.62    66.12   8/15/2018   VE      USD
Int'l Bond           8.25    35.4   10/13/2024   VE      USD
Int'l Bond           9.25    40.25   9/15/2027   VE      USD
Empresa de
los Ferrocarriles
del Estado           6.5     71.4    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.
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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
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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,
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