TCRLA_Public/150525.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 25, 2015, Vol. 16, No. 101



BRAZIL: Ministers Spar Over Potential Timing of Recovery
BRAZIL: Unexpectedly Loses Jobs in April for First Time
CEAGRO AGRICOLA: Fitch Cuts Issuer Default Ratings to 'C'
CEAGRO AGRICOLA: S&P Cuts Rating to 'D' on Missed Interest Payment
COMPANHIA DE SANEAMENTO: Fitch Lowers IDR to 'BB'; Outlook Stable

C A Y M A N  I S L A N D S

ACADEMY LTD: Members' Final Meeting Set for June 11
AUTOPISTAS DEL NORDESTE: Fitch Affirms 'B+' Rating on $162MM Notes
CHINCHON HOLDINGS: Members' Final Meeting Set for June 8
CONTINENTAL TRUSTEES: Fitch Affirms 'BB+ Sr. Secured Notes Rating
GLOBAL SPORTS: Members' Final Meeting Set for June 25

GREY2O OFFSHORE: Shareholders' Final Meeting Set for June 5
MILLENNIUM EUROPEAN GP: Members' Final Meeting Set for June 2
MILLENNIUM EUROPEAN LP: Members' Final Meeting Set for June 2
MILLENNIUM TMT TURIN: Members' Final Meeting Set for June 2
MILLENNIUM TMT USA: Members' Final Meeting Set for June 2

STRATEGIC VALUE: Shareholders' Final Meeting Set for June 3


COLOMBIA: Holds Key Rate at 4.5% as Inflation Surge Continues


HAITI: To Get $27MM IDB Loan to Improve Transportation


DIGICEL GROUP: Fitch Affirms 'B' Long-term Issuer Default Rating


GRUPO PAPELERO: S&P Affirms 'B+' CCR & Removes from Watch Dev.
MEXICO: Central Bank Extends $3 Billion Plan to Support Peso


BANCO INTERAMERICANO: Fitch Affirms 'BB-' Support Rating Floor
PERU: Repsol, Zeta to Import Barrels of LPG to Avert Shortages

P U E R T O    R I C O

NEWPORT BONDING: A.M. Best Places FSR of 'C' Under Review

V I R G I N  I S L A N D S

LAWNDALE GROUP: Chapter 15 Case Summary


* Moody's Sees Currency Volatility as Credit Concern in LatAm
* Moody's Says Caribbean Sovereign Credit Quality Stabilizes
* BOND PRICING: For the Week From May 18 to May 22, 2015

                            - - - - -


BRAZIL: Ministers Spar Over Potential Timing of Recovery
Arnaldo Galvao and Francisco Marcelino at Bloomberg News report
that Brazil's Finance Minister Joaquim Levy doesn't expect the
economy to recover before 2016, in contrast to Budget Minister
Nelson Barbosa's more optimistic forecast of a comeback in the
second half of this year, said a government official with
knowledge of Mr. Levy's view.

Mr. Levy considers that suggesting a recovery is just around the
corner could hinder prospects of Brazil's congress taking needed
fiscal steps to boost growth, said the official, who asked not to
be named because the matter isn't public, according to Bloomberg
News.  Mr. Barbosa told reporters that he expects an economic
recovery to start in the second half, Bloomberg News relates.

The report notes that President Dilma Rousseff has raised taxes
and cut expenses to rein in Brazil's largest budget gap in 16
years and attempt to hang onto the country's investment grade

On May 22, Brazil announced it's freezing BRL69.9 billion ($22.6
billion) in spending this year, while raising taxes on profits at
banks, brokerage houses and credit-card processors to 20 percent
from 15 percent, Bloomberg News relates.

The pending tax increase sent stocks in Brazil's largest banks
down sharply on May 22, Bloomberg News relates.  The benchmark
Ibovespa index fell 1.3 percent on May 22, and 5 percent on the
week, the worst since December, Bloomberg News notes.

Mr. Levy considers the budget spending freeze should have been
larger for Brazil to achieve its primary surplus target for this
year, according to the government official, Bloomberg News

The finance minister is displeased with ex-President Luiz Inacio
Lula da Silva's criticism of the fiscal adjustment plan, though
Levy doesn't plan to resign in protest, the person said, Bloomberg
News relays.

President Rousseff and Mr. Silva are from ruling Workers' Party,
known as PT. Levy is a former president of a division of Banco
Bradesco SA, Bloomberg News discloses.

BRAZIL: Unexpectedly Loses Jobs in April for First Time
Mario Sergio Lima at Bloomberg News reports that Brazil
unexpectedly lost jobs in April for the first time on record as
the economy heads toward the deepest recession in 25 years.

Brazil shed 97,828 formal job posts, a report published by the
Labor Ministry showed, according to Bloomberg News.  Analysts
expected the creation of 48,000 jobs, according to the median
estimate in a Bloomberg survey of 18 economists, Bloomberg News

This was the first time the economy lost jobs in April since the
start of the series in 2002, Bloomberg News relates.

Record low unemployment levels during President Dilma Rousseff's
first term helped her win re-election last year, Bloomberg News

Now, her administration is raising borrowing costs, increasing
taxes and reducing spending in order to tame above-target
inflation and narrow the budget deficit, Bloomberg News discloses.

While the measures may help the country avert a credit rating
downgrade and restore investor confidence, they are having a
negative impact on growth in the short term, Bloomberg News

"This is surprising and shows just how bad the labor market is,"
the report quoted Rodrigo Melo, chief economist at Rio de Janeiro-
based Icatu Vanguarda Administracao, as saying.  This result may
lead analysts to "cut their projections for this year's gross
domestic product."

CEAGRO AGRICOLA: Fitch Cuts Issuer Default Ratings to 'C'
Fitch Ratings has taken the following ratings actions on Ceagro
Agricola Ltda.:

  -- Foreign and local currency Issuer Default Ratings (IDRs)
     downgraded to 'C' from 'B';

  -- USD100 million senior notes due 2016 downgraded to 'C/RR4'
     from 'B/RR4';

  -- National scale rating downgraded to 'C(bra)' from 'BBB(bra)'.

The downgrade follows the missed payment by Ceagro Agricola Ltda.
of the coupon relating to the USD100 million senior notes due May
2016 in the amount of USD5.3 million, thus entering a 15-day cure
period. The coupon was due May 15. Fitch anticipates that the
company will enter in a restructuring process for the debt through
a distressed debt exchange.


  -- Increased systemic risk and scarce availability of medium and
     long-term finance.


The company's ratings could be downgraded further if the company
files for bankruptcy protection.

An upgrade is unlikely at this time given the company's
difficulties meeting its payment obligations.

CEAGRO AGRICOLA: S&P Cuts Rating to 'D' on Missed Interest Payment
Standard & Poor's Ratings Services downgraded Ceagro Agricola to
'D' from 'B' on global scale and to 'D' from 'brBBB-' on national
scale.  At the same time, S&P lowered its senior unsecured debt
rating to 'D' from 'B'.  S&P's recovery rating on the debt rating
remains unchanged at '3', indicating its expectation for
meaningful (50% to 70%; in the higher half of the range) recovery
in the event of payment default.

The downgrade reflects Ceagro's missed interest payment on its
2016 senior unsecured debt due May 16, 2015.  The company just
announced that it initiated a restructuring process, which S&P
believes won't be completed during the cure period, resulting in a
general default on its obligation.

COMPANHIA DE SANEAMENTO: Fitch Lowers IDR to 'BB'; Outlook Stable
Fitch Ratings has downgraded Companhia de Saneamento Basico do
Estado de Sao Paulo's (Sabesp) Foreign and Local currency Issuer
Default Rating (IDRs) to 'BB' from 'BB+' and its National Long-
term rating to 'AA-(bra)' from 'AA(bra)'.  The Rating Outlook is


The downgrade reflects the weakening of Sabesp's financial profile
in 2014 combined with the expectation of further deterioration
during 2015.  The company faces a low hydrology environment that
has sharply reduced the company's reservoir levels and water
supply capacity.  The company's decision to apply the incentive
water reduction program has also contributed to deteriorate
Sabesp's revenue and cash flow generation during 2014.  Sabesp has
relevant challenges in next quarters due to the expected continued
reduction on the volume of water and sewage billed and pressured
average tariff as the incentive program to reduce water
consumption remains.

For 2015, Fitch forecasts Sabesp's net leverage measured by total
proforma net debt/EBITDA to be high and above 4.0x from 3.1x in
2014, and 1.9x in 2013.  The pro forma analysis excludes the
EBITDA benefits of BRL696 million from the agreement with the
state government of Sao Paulo regarding past liabilities since it
is non-operating, non-recurrent and estimated limited short-term
cash impact of BRL90 million.  The rating action assumes rainfall
resuming at historical levels in 2016 and lifting of the incentive
water reduction program during 1Q2016.  Changes to these
assumptions may pressure the current ratings.

Sabesp's ratings incorporates the strength of the company's cash
flow from operations (CFFO) during regular hydrologic conditions,
combined with its satisfactory liquidity position and lengthened
debt maturity profile which should contribute to partially
mitigate the more challenging scenario.  The ratings also reflects
the company's near monopolistic position in its business area, as
well as on the economies of scale obtained as the largest basic
sanitation company in the Americas by number of customers.

The analysis considers the risks associated with Sabesp's high
percentage of foreign currency debt on its balance sheet, which
has increased during 2014, and the still-new regulatory
environment for the company.  Fitch also factored in the political
risk inherent with Sabesp's control by the State of Sao Paulo,
with the potential for changes in management and strategy after
each election.  Cash flow generation can be jeopardized due to
political decisions, as occurred with the postponement of the
tariff adjustment in 2014.

Severe Drought to Further Pressure Financial Profile

Fitch expects Sabesp's lower net revenues of around 5.0% by the
end of 2015 compared with 2014 given the restricted water
availability and the water reduction incentive program.  The
expected revenue reduction should be partially mitigated by the
tariff increases of 6.5% in December 2014 and 15% to be effective
from June 2015.  The company's decision to maintain its water
reduction incentive program should continue to deteriorate its
revenue and CFFO generation capacity and negatively impact its
credit metrics during 2015.

Fitch forecasts Sabesp's proforma EBITDA in 2015 to be BRL2.5
billion, which should maintain the company's net leverage
pressured at 4.1x in the same period.  During LTM ended March
2015, the company's EBITDA decreased to BRL2.5 billion from BRL2.9
billion by the end of 2014 and BRL4.0 billion reported in 2013.
Fitch estimates the company's net leverage and financial profile
to gradually recover from 2016 onwards assuming hydrologic
conditions return to normal standards.  The agency forecasts that
consumer lower volume consumption behavior should lag to resume at
historical levels in approximately 3 - 4 years.

Low Reservoirs to Continue Impacting in 2015

Sabesp's low water reservoir level at the Cantareira System
remains a concern as dry season initiated on May.  The reduced
reservoir level of 19.7% by May 20th, 2015 incorporates 29.2
percentage points (p.p.) from additional capacity introduced to
the system and is 17.2 p.p. lower compared with the same period in
2014.  Another important water supply system, the Alto Tiete, has
also registered low level at 23.2% in the same date.

The Cantareira System used to be responsible for nearly one-third
of the total volume of water produced by the company and for the
supply of its main service region.  Sabesp has taken successive
measures avoid water rationing which includes reducing water
withdrawal from this System, lowering network pressure and
transferring water from other systems to the regions previously
supplied by the Cantareira.  Sabesp has also increased investments
on other systems to reduce the dependency of the Cantareira
System.  Significant rainfall levels are needed to recover the
water level on this crucial water supply system.

Decreasing Margins

Sabesp's increased costs due to low hydrology should continue to
pressure the company's EBITDA margin which is estimated to
register around 33% by the end of 2015, according to Fitch
forecasts, partially mitigated by the tariff increases in 2015.
During the LTM of March 2015, the company's lower margin of 32%
negatively compares with 45% reported in 2013, influenced by
decrease on revenue, higher payroll, energy and treatment costs,
in addition to water reduction consumption campaign expenses.
EBITDA margin calculation does not consider construction revenue
on net revenues.

Weakening Cash Flow

A challenge to Sabesp is managing its high annual capex estimated
at 2.4 billion for 2015 and between BRL2.7 - 2.9 billion during
2016 - 2019 in order to mitigate the estimated negative FCF during
the next years.  The company's CFFO generation during the LTM
ended March 2015 of BRL2.0 billion has shown an important
reduction when compared with BRL2.5 billion and BRL2.9 billion
respectively in 2014 and 2013.  In the same period, the company's
FCF was negative at BRL1.2 billion, pressured by the aggressive
investments, which amounted to BRL2.8 billion, and by the dividend
distribution of BRL467 million in the same period.

Robust Liquidity

The maintenance of substantially more robust liquidity positions
since 2010 reduces Sabesp's debt refinancing risk and should
benefit the company throughout the deteriorated operating
environment.  The company's proven access to debt market and
manageable indebtedness maturity profile should also alleviate
pressures on its financial flexibility.

As of March 31, 2015, Sabesp's cash and marketable securities
position was strong at BRL1.7 billion.  The BRL1.4 million short-
term debt resulted in adequate coverage ratio by liquidity of
1.3x.  At the same date, Sabesp's total adjusted debt of BRL11.8
billion presented lengthened debt amortization profile, although
with a significant portion (BRL5.4 billion, or 46%) exposed to
exchange rate fluctuations, which could generate negative
pressures on the company's credit metrics and financial covenants
in the event of a significant devaluation of the Brazilian Real.
By the end of March 2015, the company registered BRL971 million of
debt maturing until 2016 exposed to the foreign currency
volatility, which poses further risks.

Key Assumptions

   -- Reduction of total volume billed of 11% in 2015 and 3%
      annual increase from 2016 - 2019.
   -- Annual tariff increases of 15,2% in 2015 and around 6% from
      2016 - 2019.
   -- EBITDA margins of 33% in 2015 with gradual growth to 42% by
   -- Recovery of historical average rainfall level in 2016 and
      lift of water reduction incentive program on the 1Q2016.
   -- Capex of BRL2.4 billion in 2015 and between BRL2.7-2.9
      billion during 2016 - 2019.


Negative Rating Actions: Further downgrades may occur due to one
or a combination of the reasons below on a sustainable basis:

   -- EBITDA margins below 33%.
   -- Net Leverage above 4.5x.
   -- (Cash+CFFO)/short term debt below 1.5x.

Positive Rating Actions: Ratings upgrade is unlikely in the short
term.  In the medium to long turn upgrades may result from:

   -- Lower operational cash generation committed to investments
      or cash generation growth above Fitch's expectations.
   -- Net leverage below 2.5x.
   -- EBITDA margin above 40%.
   -- (Cash+CFFO)/short-term debt above 2.5x.
   -- Lower FX debt exposure.

Fitch has downgraded these ratings:

   -- Local currency long-term Issuer Default Rating (IDR) to 'BB'
      from 'BB+';
   -- Foreign currency long-term IDR to 'BB' from 'BB+';
   -- USD140 million notes to 'BB' from 'BB+';
   -- USD350 million notes to 'BB' from 'BB+';
   -- National long-term rating to 'AA-(bra) from 'AA(bra)'.

The outlook for the corporate ratings is 'Stable'.

C A Y M A N  I S L A N D S

ACADEMY LTD: Members' Final Meeting Set for June 11
The members of Academy Ltd. will hold their final meeting on
June 11, 2015, at 12:00 p.m., to receive the liquidator's report
on the company's wind-up proceedings and property disposal.

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

AUTOPISTAS DEL NORDESTE: Fitch Affirms 'B+' Rating on $162MM Notes
Fitch Ratings has affirmed Autopistas del Nordeste (Cayman) Ltd's
(AdN) $162 million senior secured notes at 'B+'. The Rating
Outlook remains Stable.

The rating is supported by the minimum revenue guarantee (MRG)
paid by the government of the Dominican Republic, ('B+'/Outlook
Stable) as current and expected future toll revenues fall far
below levels required to service debt and cover project costs. The
rating affirmation is based on the internal credit enhancement
available to the transaction, deferrable principal payments and
the expectation that the government will continue to honor its
obligation, albeit on a delayed basis.


Adequate Governmental Support: The government of the Dominican
Republic pledged an MRG that protects noteholders from the risk of
insufficient traffic over the life of the notes. The government
has continued to honor this pledge, and Fitch expects required
payments to be made over the life of the notes. The government
also recently authorized the issuance of a stand-by letter of
credit (SBLC) required under the concession agreement to provide
additional support to the transaction through 2015. The SBLC was
previously authorized by the government for 2014, but the SBLC was
never issued.

Financial Guarantee: The notes benefit from a partial political
risk guarantee provided by the Multilateral Investment Guarantee
Agency (MIGA), a member of the World Bank Group. A failure by the
government to honor the MRG would be covered under this guarantee;
however, disbursements can be delayed and internal liquidity is
essential to the project's capacity to service debt. Fitch
believes the MIGA guarantee provides additional incentives for the
government to honor its obligations under the concession.

Conservative Debt Structure [Debt Structure: Stronger]: The notes
are fully amortizing, fixed-rate obligations with an adequate
covenant package. Liquidity available within the structure
includes a six-month debt service reserve account and a major
maintenance reserve account. These reserves account for liquidity
to cover approximately 12 months of debt service. Additional
flexibility is also available as targeted principal amortization
on the notes is deferrable.

Low Volume Touristic Asset [Revenue Risk - Volume: Weaker]: The
toll road connects Santo Domingo and the northern province of
Samana. The road provides an efficient route but has competing
free alternatives. Moreover, despite robust gains of 7.4% in 2014
and 15.6% for the first quarter of 2015, actual traffic remains
far below initial projections requiring substantial payments via
the MRG. This dependence on external revenues is expected to
continue in the near to intermediate term.

Regular Toll Increases [Revenue Risk - Price: Midrange]: The
operator of the road is able to increase tolls under the
concession agreement and has historically completed annual rate
adjustments to account for inflation without issue.

Predictable Operating Costs [Infrastructure Development & Renewal:
Midrange]: A fixed operation-and-maintenance agreement with an
experienced operator partially mitigates substantial cost
escalations. Additionally, the project benefits from oversight
from an independent engineer who provides quarterly reports to
investors on the overall condition of the toll road and current
and future maintenance needs.

Peer Group: The transaction's dependence on revenues from the
Dominican Republic effectively caps the rating at the level of the
sovereign; however, financial metrics such as DSCR and net-debt to
cash flow available for debt service are generally consistent with
higher rated peers such as ENA Este, S.A.


A negative rating action on the notes could result from a negative
rating action on the sovereign or significant delays resulting in
material deterioration of project liquidity.

A positive rating action could result from a positive rating
action on the sovereign combined with sustained timely fulfilment
of government financial obligations to the issuer.


Traffic levels on the toll road increased 7.4% in 2014 versus 2013
and 15.6% for Q1 2015 versus Q1 2014. The stronger growth reflects
the inauguration of the connecting toll roads, increased touristic
activity in the Samana region from local and international
tourists, and the improved GDP growth following the resolution of
the large fiscal deficit in 2012. The increased levels of traffic
will benefit the transaction by providing additional liquidity to
deal with delays in the payment of the MRG but will not be
sufficient to replace the importance of the government payments.

The transaction benefits from a partial credit guarantee from MIGA
which supports debt service payments should the government not
comply with their obligations. The guarantee pays 51% of debt
service not honored up to a maximum of 51% of the total principal
balance. The guarantee is not payable on a timely basis though,
and the transaction depends on the liquidity available internally
to meet debt service obligations prior to receipt of MIGA funds.

The toll road, completed in 2009, extends along 106 kilometers
(approximately 66 miles), connects Santo Domingo with the northern
province of Samana, and includes three toll plazas. In comparison
to alternative roads in the region, AdN considerably reduces the
travel distance between Santo Domingo and Samana.

The notes are secured by all revenues received by the company, the
rights of the concession, contracts, MRG and all issued and
outstanding shares of the company pledged to the Trustee.

Autopistas del Nordeste (Cayman) Limited is the issuer, created
under the laws of the Cayman Islands, and is an exempted limited
liability company owned by a consortium composed of: Organizacion
de Ingenieria Internacional SA, Odinsa Holding Inc., CI Grodco S
en CA Ingenieros Civiles, Grodco Panama, Consorcio Remix,
Caribbean Basin Construction Corporation Ltd.

CHINCHON HOLDINGS: Members' Final Meeting Set for June 8
The members of Chinchon Holdings will hold their final meeting on
June 8, 2015, to receive the liquidator's report on the company's
wind-up proceedings and property disposal.

The company's liquidators are:

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

CONTINENTAL TRUSTEES: Fitch Affirms 'BB+ Sr. Secured Notes Rating
Fitch Ratings has affirmed BBVA Banco Continental's (BC) viability
rating (VR) and Issuer Default Ratings (IDRs) at 'a-' and 'A-',



BC's viability rating and IDRs reflect its solid asset quality and
ample reserves, robust franchise, solid and consistent
performance, strong profitability, high efficiency, wide and low
cost deposit base and adequate capital. BC's cautious approach to
business and track record of adequate risk management underpin its
credit metrics and provide stability amid a less benign operating
environment projected during 2015 for Peruvian economy.

BC's moderate risk appetite, adequate credit policies, and risk
management tools contribute to maintain its historic asset quality
among the best in the region. Although Fitch notes a deterioration
trend in the latest two years with BC's 90-day past-due loan (PDL)
stood below 2% at YE14 and were covered by ample reserves. Some of
these ratios could continue to deteriorate slightly but should
remain sound and compare adequately with regional peers.

In addition, the bank's efficiency and adroit credit risk
management that minimizes credit cost, have contributed to an
operating ROAA above 2.5% for the past five years; although with a
clear declining trend. Fitch estimates this ratio should remain
above 2% considering its robust franchise under a moderate growth

Funding is wide based, stable, diversified with a growing share of
professional and capital markets. Funding cost is moderate in line
with the system's average albeit growing slightly, at par with the
market. Capital markets funding provides the bank with lower
funding costs and long-term funding, which improves
asset/liability matching.

Sound profitability and earnings retention underpin BC's capital,
which have declined from its peak in 2009 due to BC's solid
growth, with a Fitch Core Capital ratio 9.6% at YE14, below the
direct regional peers median (near to 11%). Stringent regulation
effectively creates a floor under BC's Fitch core capital (FCC)
ratio, but the RWA growth have put pressure with respect to its
peers' average, but it still compares well to similarly rated VR
'a-' banks .

In addition, BC's still strong LLR create an additional cushion as
LLR exceed 90-day PDLs in an amount equivalent to about 18% of
Fitch Core Capital. Under the assumption of 150% LLR over 90-day
PDLs (the same as regional peers average), the Fitch core capital
ratio will be around 100pb above current level.

Adequate cash and equivalents positions coupled with a low-risk,
liquid investment portfolio, reflect the bank's desire to maintain
ample liquidity to face any stress.


The support rating of '2' reflects Fitch's view that there is high
probability of support to BC from its parent BBVA (rated 'A-'
/Outlook Stable), if needed, as BC is considered a strategic
subsidiary of BBVA.


As per Fitch's criteria, the subordinated note are rated one notch
below BC's VR, reflecting one notch for loss severity, but no
notches for incremental non-performance risk relative to the
bank's VR. In Fitch's opinion, losses for the bondholders would
only arise when and if the bank reaches the point of non-
viability, which is why these securities receive no equity credit
under the agency's criteria


Fitch has affirmed the rating of the loan participation notes
issued by CTCL at 'BB+'. The notes are secured by the rights to a
junior subordinated loan extended to BC. CTLC's notes, rated four
notches below the bank's VR, have strong equity-like features
including the non-cumulative deferral of the coupons and a deeper
subordination. This notching reflects the incremental non-
performance risk relative to that captured by the VR and the loss
severity (two notches) given its deeper subordination.


Fitch has affirmed the rating of the loan participation notes
issued by CSTC at 'A-'. The notes are secured by the rights to a
senior loan extended to BC, hence are equalized with the long-term
Foreign Currency IDR of BC.


Fitch has affirmed the rating of the loan participation notes
issued by CSTCII at 'A-'. The notes are secured by the rights to a
senior loan extended to BC, hence are equalized with the long-term
Foreign Currency IDR of BC.



Sustained Performance and Balance Sheet Strength: Over the medium
term, BC's VR and IDR are highly correlated with the strength of
the Peruvian economy; should the economic environment continue to
improve - including lower dollarization and stronger sovereign
ratings - and, if the bank is able to maintain its balance sheet
strength, credit quality ratios and performance while improving
its capitalization (FCC above 12%), its ratings could be improved.

On the other hand, BC's Local Currency IDRs could benefit from a
significant improvement of its parent's ability to provide
support, as evidenced by BBVA's IDR.

Significant Deterioration of its Performance: BC's VR and IDRs
would be pressured, individually or collectively, by a sharp
deterioration of the bank's performance or a larger than expected
decline in asset quality that would erode the capital/ reserves
cushion (ROAA below 2%, 90-day PDLs above 3%, and FCC consistently
below 9.5%).


The subordinated notes' rating is sensitive to any changes in BC's
VR and will typically be rated one notched below BC's VR.


The support rating of BC could be revised upward if the parent
rating is materially further upgraded (at least two notched from
current BBVA Spain 'A-' IDR).


The ratings of the securities issued by these three SPVs would
move in line with those of BC.

Fitch has affirmed BC's ratings as follows:

  -- Long-term foreign currency IDR to 'A-', Stable Outlook;
  -- Short-term foreign currency IDR at 'F1';
  -- Long-term local currency IDR at 'A-', Stable Outlook;
  -- Short-term local currency IDR at 'F1';
  -- Viability rating at 'a-';
  -- Support rating at '2';
  -- Senior unsecured debt at 'A-';
  -- Subordinated debt at 'BBB+';

Continental Trustees (Cayman) Ltd.

  -- Senior secured junior subordinated loan participation notes
      at 'BB+'.

Continental Senior Trustees (Cayman) Ltd

  -- Senior secured loan participation notes at 'A-'.

Continental Senior Trustees II (Cayman) Ltd.

  -- Senior secured loan participation notes at 'A-'.

GLOBAL SPORTS: Members' Final Meeting Set for June 25
The members of Global Sports Opportunities Ltd will hold their
final meeting on June 25, 2015, at 4:00 p.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

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: Shareholders' Final Meeting Set for June 5
The shareholders of Grey2O Offshore Fund, Ltd will hold their
final meeting on June 5, 2015, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

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

MILLENNIUM EUROPEAN GP: Members' Final Meeting Set for June 2
The members of Millennium European Opportunity GP will hold their
final meeting on June 2, 2015, at 11:15 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Krys GLOBAL VL Services Limited
          Governor's Square, Building 6, 2nd Floor
          23 Lime Tree Bay Avenue
          P.O. Box 21237 Grand Cayman KY1-1205
          Cayman Islands

MILLENNIUM EUROPEAN LP: Members' Final Meeting Set for June 2
The members of Millennium European Opportunity LP will hold their
final meeting on June 2, 2015, at 11:45 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Krys GLOBAL VL Services Limited
          Governor's Square, Building 6, 2nd Floor
          23 Lime Tree Bay Avenue
          P.O. Box 21237 Grand Cayman KY1-1205
          Cayman Islands

MILLENNIUM TMT TURIN: Members' Final Meeting Set for June 2
The members of Millennium TMT Fund Turin Networks Investment
Limited will hold their final meeting on June 2, 2015, at
10:30 a.m., to receive the liquidator's report on the company's
wind-up proceedings and property disposal.

The company's liquidator is:

          Krys GLOBAL VL Services Limited
          Governor's Square, Building 6, 2nd Floor
          23 Lime Tree Bay Avenue
          P.O. Box 21237 Grand Cayman KY1-1205
          Cayman Islands

MILLENNIUM TMT USA: Members' Final Meeting Set for June 2
The members of Millennium TMT Fund USA Investments Limited will
hold their final meeting on June 2, 2015, at 10:00 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Krys GLOBAL VL Services Limited
          Governor's Square, Building 6, 2nd Floor
          23 Lime Tree Bay Avenue
          P.O. Box 21237 Grand Cayman KY1-1205
          Cayman Islands

STRATEGIC VALUE: Shareholders' Final Meeting Set for June 3
The shareholders of Strategic Value Partners Ltd. will hold their
final meeting on June 3, 2015, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Elian Fiduciary Services (Cayman) Limited
          c/o Julie Hughes
          Telephone: (345) 815 1426
          Facsimile: (345) 945 6265


COLOMBIA: Holds Key Rate at 4.5% as Inflation Surge Continues
Oscar Medina at Bloomberg News reports that Colombia kept
borrowing costs unchanged for a ninth straight month after the
central bank trimmed its growth forecast and inflation accelerated
to the fastest pace since 2009.

The seven-member board voted unanimously to maintain the benchmark
rate at 4.5 percent, central bank Governor Jose Dario Uribe told
reporters on May 22 in Bogota after the meeting, according to
Bloomberg News.  The decision was forecast by all 31 analysts
surveyed by Bloomberg.

"The Colombian economy is adjusting to the new external conditions
in an environment of lower consumption and investment growth,"
Uribe said, reading the policy statement, Bloomberg News relates.
"Faster inflation is explained manly by the increase in food
prices and, to a lesser extent, by the impact of the peso's
devaluation," the statement added.

Bloomberg News notes that a surge in inflation and the widest
current account gap in more than a decade are preventing policy
makers from acting to reverse a slowdown in growth caused by lower
oil prices.  The central bank will hold rates for the rest of the
year as it gauges the depth of the slowdown, said Camilo Perez,
chief economist at Banco de Bogota, who correctly forecast May
22's decision, Bloomberg News says.

"The current account deficit is wide, so they can't cut," Mr.
Perez said in response to emailed questions, Bloomberg News
discloses.  "It would be a mistake to raise rates, because the
economy is weak and there is uncertainty over the scale of the
deceleration," Mr. Perez added.

                         Policy Balance

The current account deficit last year widened to 5.2 percent of
gross domestic product, the most in more than a decade, as prices
slumped for crude, Colombia's biggest export, Bloomberg News
relays.  Finance Minister Mauricio Cardenas and central bank co-
director Ana Fernanda Maiguashca have both cited the deficit as an
argument against cutting rates, Bloomberg News discloses.

Annual inflation accelerated to 4.64 percent in April, the highest
rate after Brazil among the region's major inflation-targeting
economies, Bloomberg News says.  Policy makers have repeatedly
said that faster consumer price increases are being driven by
temporary increases in food and import costs, Bloomberg News

Bloomberg News discloses that inflation will slow to 3.19 percent
by the end of 2016, according to the most recent central bank
survey of economists.  Policy makers try to keep expected price
increases "anchored" close to the inflation target, since these
play a role in price-setting decisions and wage negotiations,
Bloomberg News relays.

Colombia targets inflation of 3 percent, plus or minus one
percentage point, notes the report.

In its quarterly inflation report published May 8, the central
bank forecast that the economy will grow 3.1 percent or 3.2
percent this year, down from a previous forecast of 3.6 percent,
Bloomberg News notes.

That would be the nation's weakest expansion since 2009, while
outpacing the 0.9 percent growth that the International Monetary
Fund forecasts for Latin America and the Caribbean as a whole,
Bloomberg News discloses.

The peso has weakened 24 percent over the last year, the biggest
drop after the Russian Ruble and the Brazilian Real among major
emerging market currencies, Bloomberg News adds.


HAITI: To Get $27MM IDB Loan to Improve Transportation
The Inter-American Development Bank (IDB) has approved a $27
million grant to help modernize and improve the management of
Haiti's roads and ports, key sectors that are fundamental for the
country's economic development and integration.

The grant is the second in a series of three programmatic Policy
Based Grants (PBGs) that provide the Haitian government with
budget support for policy, legal and institutional reforms of
government agencies.  This grant includes measures aimed at
modernizing and strengthening road sector management to improve
planning, maintenance, road safety, construction and
rehabilitation of roadways.  It also covers modernization of
maritime sector management, including policy and legal reforms
governing the country's ports.

These fast-disbursing grants complement other larger,
transportation investment projects financed by the IDB and other
donors in Haiti.  The program will benefit both the private and
public sectors by providing better transport and maritime port
infrastructure, lower costs and decreased travel time.


DIGICEL GROUP: Fitch Affirms 'B' Long-term Issuer Default Rating
Fitch Ratings has affirmed the ratings of Digicel Group Limited
(DGL) and its subsidiaries Digicel Limited (DL) and Digicel
International Finance Limited (DIFL), collectively referred to as
'Digicel' as follows.

  -- Long-term Issuer Default Rating (IDR) at 'B' with a Stable
-- USD 2.5 billion 8.25% senior subordinated notes due 2020 at
  -- USD 1 billion 7.125% senior unsecured notes due 2022 at 'B


  -- Long-term IDR at 'B' with a Stable Outlook;
  -- USD 250 million 7% senior notes due 2020 at 'B/RR4';
  -- USD 1.3 billion 6% senior notes due 2021 at 'B/RR4';
  -- USD 925 million 6.75% senior notes due 2023 at 'B/RR4';


  -- Long-term IDR at 'B' with a Stable Outlook;
  -- Senior secured credit facility at 'B+/RR3'.

The Rating Outlook is Stable.


Digicel's ratings reflect its well-diversified geographical
operation with leading market positions, strong network quality,
and brand recognition, which have and will continue to enable
stable performance and cash flow generation. The ratings are
tempered by the company's aggressive shareholder distributions,
high leverage, and the business concentration in countries with
low ratings.

Under Fitch's approach to rating entities within a corporate group
structure, the IDRs of DGL and its subsidiaries, DL and DIFL, are
the same and viewed on a consolidated basis as they have a weaker
parent and the degree of linkage between parent and subsidiaries
is considered strong. For issue ratings, Fitch rates DIFL's debt
one notch higher than its parent DL, reflecting its above-average
recovery prospects. DL's ratings reflect the increased burden the
DGL subordinated notes place on the operating assets and the loss
of financial flexibility. The ratings of DGL incorporate their
subordination to debt at DIFL and DL, as well as the subordinated
notes' below-average recovery prospects in the event of default.

Stable Operating Trends:

Digicel has generated stable operating results in the first nine
months of fiscal 2015 (FY2015), ending on March 31, 2015, and
Fitch expects this trend to continue over the medium term. During
the period, the company's constant-currency-based revenue posted
stable growth of 5% with a solid EBITDA margin of 41.4%, which was
a modest decline from 42.8% a year ago. (Fitch's EBITDA
calculation includes staff costs related to share options.) This
was mainly driven by increasing data revenue supporting average
revenue per user (ARPU), and steady growth in Papua New Guinea
(PNG), Trinidad & Tobago, and the Other Markets segment. Stable
subscriber base expansion continued, with the total subscriber
base reaching 13.8 million as of December 2014 from 13.4 million a
year ago. Although revenue growth as reported in USD is likely to
remain weak due to the local currency depreciation in some of its
markets, the operational impact should not be material given the
close revenue-cost currency match.

Strong Growth in Papua New Guinea:

PNG continues to grow strongly, offsetting weak growth in other
major countries of operation, such as Jamaica and Haiti. In the
third quarter ended Dec. 31, 2014 (3Q14), the local-currency-based
revenue in PNG grew by 15% on a year-on-year basis, mainly
supported by mobile data and business solutions revenues. In
addition, Fitch forecasts a steady expansion of the subscriber
base in the country, which grew by 7% compared to Dec. 31, 2013,
as penetration rates are still low at only 43%. During 3Q14, PNG
accounted for 17.7% of the total service revenue, based on the
USD, which was the largest among the group companies.

Positive Revenue Diversification:

Ongoing revenue diversification away from the traditional mobile
voice is positive. The contribution from data-based value-added
services (VAS) should continue to steadily increase over the
medium term, mitigating negative pressures on the voice ARPU,
which has suffered from a high level of competition and reduced
mobile termination rates in some markets. For the quarter ended
December 2014, non-SMS data VAS revenues grew by 21% from a year
ago, accounting for 19.2% of mobile service revenues, compared to
15.8% in the previous year. Increasing smartphone penetration,
which rose to 31% from 20% during the same period, should continue
to support this trend.

Digicel has also gradually increased its presence in cable TV and
broadband segments through the acquisition of regional operators
in the past couple of years as part of its diversification
strategy. The company has also acquired submarine fiber assets in
2014 to increase data capacity to support the cable business
solutions segment. This segment grew strongly by 55% to USD32
million during the quarter ended December 2014 versus a year ago.
Revenue contribution from these services is yet to be significant
as it represented only 6.4% of the consolidated service revenue in
the quarter, but these segments are likely to become a meaningful
cash generator over the long term, as the demand outlook is solid.

Negative FCF:

Fitch forecasts Digicel's negative free cash flow (FCF) generation
to continue until FY2016 due to high capex, despite stable
performance. Also, aggressive dividend payment has been a negative
credit concern weighing on the company's financial profile. During
FY2015, the company's annual capex is forecast to have peaked at
about USD650 million, from USD552 million in FY2014, as a result
of network expansion and upgrades, including cable networks as
well as a tower project in Myanmar. Capex is likely to decline to
USD500 million in FY2016 and further towards USD400 million in
FY2017 as expansionary projects are largely completed. FY2014
dividend payment was high at USD690 million, mainly due to the
special dividend payment of USD650 million. Fitch's base-case
projection incorporates the annual dividend payment of USD40
million over the medium term based on the company's guidance. In
the absence of sizable dividends, Fitch expects FCF to turn
positive from FY2017.

Stable Leverage:

Digicel's financial leverage should remain commensurate with the
rating level over the medium term albeit with modest
deterioration. Despite forecast negative FCF and some pending
investments, its cash balance of USD512 million at December 2014
should cover any shortfall in cash flow from operations without a
significant need for external financing. Therefore, any material
increase in the company's gross debt level, which was USD6.4
billion at December 2014, is unlikely. Fitch forecasts Digicel's
net-debt-to-EBITDA to remain in the range of 5.0x-5.5x over the
medium term, which compares to 4.7x at end-FY2014.

Sound Liquidity:

Digicel's liquidity profile has substantially improved with the
extension of debt maturities of DIFL's USD857 million facility
loans during June 2014. These loans were originally due during
FY2015-FY2017. Following the extension, the company faces no
significant debt maturities until FY2018 when the USD202 million
portion of the facility becomes due. Also, during March 2015, DL
successfully refinanced its USD800 million in notes, which was
originally due 2017.

Key Assumptions

  -- Low-single-digit annual revenue growth in FY2016 and FY2017;
  -- EBITDA margin to fall towards 40% over the medium- to long-
  -- Neutral-to-negative FCF generation until FY2016 due to high
  -- Annual dividend payment to remain at USD40 million over the
     medium term;
  -- Net leverage to remain in the range of 5.0x-5.5x over the
     medium term.

Rating Sensitivities

A negative rating action could be considered if consolidated
leverage at DGL increases above 6.0x on a sustained basis, due to
a combination of competitive pressures, high capex, sizable
acquisitions, and aggressive shareholder distributions.

While refinancing risk was substantially reduced with the recent
note issuances and credit facility debt maturity extension, an
inability to refinance in advance of sizeable bullet maturities in
the medium- to long-term could also pressure its credit quality.

Conversely, a positive rating action could be considered in the
case of a sustained reduction in consolidated gross leverage to
4.0x or below, and an increase in FCF generation.


GRUPO PAPELERO: S&P Affirms 'B+' CCR & Removes from Watch Dev.
Standard & Poor's Ratings Services affirmed its 'B+' corporate
credit and debt ratings on Grupo Papelero Scribe S.A. de C.V.
(Scribe) and removed them from CreditWatch, where S&P placed them
with developing implications on Aug. 28, 2014, following the
announcement of the potential acquisition of Corporacion Scribe
S.A.P.I. de C.V. (Scribe's parent) by Grupo Bio Pappel's.  The
outlook is stable.

Scribe reported weaker-than-expected credit metrics in 2014 and
the first quarter of 2015 as a result of difficult market
conditions.  Mexico's sluggish economy, slow government spending
due to budget cuts, high pulp and energy prices, and the recent
devaluation of the company's functional currency took a toll on
Scribe's results for the past few quarters.  The company's bulk of
debt and the purchase of its pulp input are dollar denominated.
However, in the first few months of 2015, Scribe was able to
increase its prices to partly compensate for the peso's
devaluation, which should improve the company's operating and
financial performance.  Also, S&P revised its assessment of the
company's liquidity to "strong" from "adequate" given its long-
term debt maturity profile and consistent positive FOCF

The regulatory approval for the company's buyout is still pending.
However, if it does occur, S&P now believes that it won't affect
the ratings on Scribe.

S&P's assessment of Scribe's "weak" business risk profile
continues to reflect the challenges of operating in the seasonal
and somewhat mature paper industry in Mexico and the difficulties
of mitigating the company's exposure to pulp price volatility,
given its insufficient vertical integration in pulp production.
The assessment also reflects a highly competitive paper industry
due to the North American Free Trade Agreement, which facilitates
imports from the U.S. and Canada into Mexico.  The mitigating
factors are the company's strong brand recognition in Mexico, its
80% share of the notebook market, its solid position in the paper
and office supplies markets, and a relatively low-cost production
structure in the paper industry.

"We have revised Scribe's financial risk profile to "highly
leveraged" from "aggressive," reflecting the company's high debt
level and its currency mismatch between its dollar-denominated
debt and its peso-denominated revenues and cash flow generation,
which has recently weakened its credit metrics, as seen in debt to
EBITDA of 6.2x and funds from operations (FFO) to debt of 9.1% for
the 12 months ended March 2015.  Scribe has recently raised its
prices to mitigate its foreign-exchange exposure for its pulp
purchase--its main input cost--and contained the costs inflation
in its supply chain.  This, along with the implementation of
various reductions in operating expenses, should result in a
gradual improvement of its credit metrics, although still in line
with our "highly leveraged" financial risk profile.  Specifically,
we expect debt to EBITDA to remain above 5.0x and FFO to debt
below 12% in 2015.  Nonetheless, we believe that Scribe will
continue to generate positive FOCF thanks to gradually improving
EBITDA and stronger working-capital management, as a result of its
"synergia project" that aims to reduce its inventories and
receivables level," S&P said.

S&P's base-case scenario assumes:

   -- GDP growth in Mexico of about 3.0% in 2015 and 3.5% in 2016
      with a gradual recovery in government spending during the
      second half of 2015;

   -- Revenue growth in the 6% area for 2015 and 2016 mainly due
      to a 6% rise in prices;

   -- EBITDA margin to reach about 13.0% in 2015 and 13.5% in 2016
      as a result of pricing initiatives to mitigate pulp price
      increases and cost-efficiency measures to protect its
      operating margins;

   -- Slightly positive working capital inflow in 2015 and 2016;

   -- Annual capital expenditures (capex) of MXN200 million-
      MXN212 million during 2015 and 2016 for capacity expansion;

   -- No bolt-on acquisitions in the next few years;

   -- Debt amortization of about MXN124.6 million in the next 12

   -- No dividend payments during the next two years; and

   -- Stable debt levels in the next few years.

Based on these assumptions, S&P arrives at these credit measures
for 2015 and 2016:

   -- Debt to EBITDA of 5.5x-5.0x;
   -- FFO to debt of 10%-12%; and
   -- EBITDA interest coverage of 2.0x-2.3x.

S&P assess Scribe's liquidity position as "strong."  S&P expects
liquidity sources will exceed uses by more than 1.5x during the
next 12 months and above 1.0x over the subsequent 12 months even
if EBITDA falls by 30%.  S&P believes that Scribe's liquidity
benefits from an extended debt maturity profile (bulk of debt
maturing in 2020) and our view of a generally prudent financial
risk management and generally high standing in credit markets.

Principal liquidity sources:

   -- About MXN841 million of cash and cash equivalent as of
      March 31, 2015 FFO of about MXN460 million for the next 12

Principal liquidity uses:

   -- Debt maturities of about MXN124.6 million for the next 12

   -- Working-capital outflows of about MXN110 million for the
      next 12 months

   -- Capex of about MXN200 million for the next 12 months

The terms of the outstanding notes include a 2.25x fixed-charge
coverage ratio covenant that limits the company from incurring
additional debt.

The strong liquidity provides one-notch uplift to the 'b' anchor.
All the other modifiers are neutral to the rating.  Therefore, the
company's stand-alone credit profile is 'b+'.

The stable outlook reflects S&P's view that Scribe will post a
mid-single digit revenue growth supported by its ability to
increase prices and its cost-saving measures, despite the
continuing challenging market conditions in Mexico.  S&P expects
Scribe will improve its EBITDA margin to the 13.0%-13.5% range in
the next two years.  Still, S&P believes that its debt to EBITDA
will remain above 5.0x and FFO to debt below 12% in 2015.
Nonetheless, S&P believes that Scribe will continue to generate
positive FOCF, which will support its "strong" liquidity.  In
addition, S&P don't expect the company's potential buyout to
affect the ratings on Scribe.

S&P could lower the rating if Scribe's key credit metrics weaken
further as a result of lower-than-expected profitability due to
delays in cost-saving measures and a further peso devaluation.
Moreover, although unlikely, a negative rating action could also
result from a weaker liquidity owing to lower FOCF generation.

A positive rating action is possible if Scribe posts debt to
EBITDA below 5.0x and FFO to debt above 12.0% on a consistent
basis, while maintaining positive FOCF generation due to higher-
than-expected sales growth and stronger profitability,
particularly with an EBITDA margin close to 15%.

MEXICO: Central Bank Extends $3 Billion Plan to Support Peso
Isabella Cota and Brendan Case at Bloomberg News reports that
Mexican policy makers said they will maintain support for the peso
after its current $3 billion intervention program expires in June.

The Bank of Mexico said in a statement it will keep up the current
pace of selling $52 million per day in the currency market at
least through Sept. 29, continuing a policy started in March,
according to Bloomberg News.  The central bank also will sell $200
million whenever the peso sinks more than 1.5 percent during a
trading session.

While the central bank's new sales represent a small fraction of
the $57 billion of daily turnover in peso trading, the
announcement signals policy makers remain concerned about pressure
on the peso after a 16 percent decline against the dollar over the
past year, Bloomberg News notes.  The peso slid 0.3 percent May 22
to 15.2726 per dollar, the fifth straight drop.

"The bank is trying to protect the currency from the increase in
volatility we've had the last few days," Mario Copca, a currency
and fixed-income strategist in Mexico City at Metanalisis SA, said
in a telephone interview with Bloomberg.

The peso has weakened over the past year as lower oil prices
damped the outlook for foreign investment, while the prospect of
higher U.S. interest rates curbed the appeal of emerging-market
assets, Bloomberg News relays.

The Bank of Mexico started the daily auctions on March 11, and
they were scheduled to run at least through June 8, Bloomberg News

                            Fed Meetings

The central bank took May 22's action partly because of possible
volatility in coming months, according to the statement obtained
by Bloomberg News.

Bloomberg News Swings in the exchange rate are expected as the
U.S. Federal Reserve deliberates whether to raise benchmark
borrowing costs at meetings scheduled to take place through
September, said Alonso Cervera, chief Latin America economist at
Credit Suisse Group AG, Bloomberg News relays.

An increase in interest rates in the U.S. typically reduces
investor appetite for higher-yielding, higher-risk assets from
emerging markets, Bloomberg News discloses.

"The Bank of Mexico is always monitoring the exchange rate because
it's one of the risk factors for inflation, and they want to make
sure there's enough liquidity to avoid disorderly movements," Mr.
Cervera said by telephone from Mexico City, Bloomberg News adds.


BANCO INTERAMERICANO: Fitch Affirms 'BB-' Support Rating Floor
Fitch Ratings has affirmed Banco Interamericano de Finanzas,
S.A.'s (BanBif) Long-term Issuer Default Rating (IDR) at 'BBB-'.
The Rating Outlook is Stable.


BanBif's local and foreign currency IDRs are driven by its VR of
'bbb-', which reflects its solid asset quality, consistent
performance, as well as an improving funding and liquidity
profile. The ratings also factor in its moderate capitalization
and franchise.

BanBif's asset quality remains good despite showing a rapid
increase in non-performing loans (NPLs) due to a slower growth of
the economic activity in the country that has affected certain
sectors that are commonly served by BanBif, such as small and
medium enterprises (SMEs). However, BanBif continues to exhibit
one of the lowest delinquency levels in the Peruvian banking
system. NPLs (90 days overdue) accounted for 1.28% of gross loans
as of December 2014 (2010 - 2013 average: 0.84%). The bank's
prudent credit policies, the recent improvements in their credit
processes, as well as the business model focused on commercial
banking products with low risk (leasing and trade finance)
underpin the bank's low NPLs. BanBif's main challenge is to
continue growing in an orderly manner in a high competitive
environment, concentrated banking system and less benign economic
environment. Favourably, Peru's relatively low banking penetration
supports BanBif's growth potential.

Reasonable and stable interest margins and sustainable generation
of non-interest revenues supported BanBif's consistent performance
(operating ROAs above 2% in the last three years). Nevertheless,
relatively high funding costs, increased delinquency levels that
have been accompanied by the increased need of loss loan
provisions, as well as high operating expenses related to the
bank's expansion continue to weigh on profitability and
operational efficiency metrics. The bank's operating profitability
remained favourably compared with its international closest peers
rated at 'bbb-', and Fitch views the bank's operating
profitability ratios at the end-2014 as sound in light of BanBif's
current business model.

BanBif has a relatively diversified funding structure and it is
reliant on deposits (76% of the total funding at December 2014;
79% at end-2013), in where the proportion of individuals has
significantly increased since 2011 given the expansion strategy
followed by the bank. As of December 2014, deposits from
individuals represented 38.45% of total deposits, in contrast with
29.19% showed in 2011 (Peruvian banking system 41.52% at end 2014
and 39.29% at end-2011).

Depositor concentration is slightly higher than that of its larger
domestic peers but in line with banks that having similar business
models. BanBif's top 20 depositors comprise mostly institutional
customers at a higher cost than that of domestic peers, accounting
for roughly 20.8% of total customer deposits at end-2014, a
concentration that has gradually decreased in recent years.
Liquidity risk is carefully monitored, and the bank's liquidity
position is ample, as BanBif held about PEN2.0bn of cash and
equivalents that represented 48% of the total short-term funding
as of Dec. 31, 2014 (43% at end-2013).

Fitch views BanBif's capitalization as its main weakness due to
the accelerated growth and the rapid increase of credit costs.
However, Fitch believes that BanBif's capital ratios remain
adequate in light of its stable performance and business focus
less risky than its closest peers, where almost 50% of its loan
exposure relies in leasing, trade finance and mortgage loans.

Fitch views BanBif's capitalization as moderate in light of its
accelerated growth. BanBif's capital position has remained stable
over the past years, driven by the consistent earnings retention.
BanBif's Fitch Core capital (FCC) to risk-weighted assets (RWA)
ratio has remained around 8%, although relatively low to its
international peers. BanBif's capital ratios may continue to be
supported by its good profitability and prudent dividend pay-out

BanBif is a medium-sized universal bank that has grown to be
Peru's fifth largest bank, with a markets share of approximately
3.5% of total loans and 3.5% of total deposits at end-2014. The
bank has gradually separated from its traditional competitors, but
still away from the 4 major banking franchises that dominate the


A constant increase of BanBif's risk appetite and sustained
deterioration in its loan portfolio that erodes its profitability
and drives FCC to RWA consistently below 8% could pressure ratings
downward. NPLs consistently above 2% and operating ROAs ratios
consistently below 1.5% also would push downward the rating.

In turn, a sustained performance that strengthens BanBif's FCC to
RWA metrics consistently above 10% could benefit the bank's VR and
IDRs. A more diversified low-cost funding mix and sustained
improvements in efficiency levels could also benefit the bank's


BanBif's Support Rating of '4' and Support Rating Floor of 'BB-'
indicate its systemic importance for the Peruvian banking system.
Being the fifth largest Peruvian bank, Fitch believes that there
would be a limited propensity for support from the government,
should it be required.


Upside potential for the SR and SRF is limited and can only occur
over time with a material growth of the bank's systemic
importance. These ratings could be downgraded if the bank loses
material market share in terms of loans and customer deposits.

Fitch has affirmed BanBif's ratings as follows:

  -- Foreign Currency Long-Term IDR at 'BBB-'; Outlook Stable;
  -- Foreign Currency Short-Term IDR at 'F3';
  -- Local Currency Long-Term IDR at 'BBB-'; Outlook Stable;
  -- Local Currency Short-Term at 'F3';
  -- Viability rating at 'bbb-';
  -- Support Rating at '4';
  -- Support Rating Floor at 'BB-'.

PERU: Repsol, Zeta to Import Barrels of LPG to Avert Shortages
EFE News reports that Spanish Energy Company Repsol and Mexico's
Zeta Gas will import approximately 135,000 barrels of liquefied
petroleum gas to avert supply shortages in Lima and Callao, the
Mines and Energy Ministry said in statement.

A 150,000-barrel LPG shortfall has been registered in May after
the rupture of a gas pipeline and climatic factors in recent weeks
affected supplies to the Peruvian capital, the ministry said,
according to EFE News.

The flow of natural gas liquids in Transportadora de Gas del
Peru's multi-purpose pipeline was paralyzed from April 30 to May 6
while the rupture in the southeastern region of Ayacucho was
repaired, the report notes.

In ensuing days, intense waves on the Peruvian coast interrupted
the regular supply of LPG for the domestic market, while the
rising level of the Camisea River triggered the corrosion of a
pipeline operated by Argentine company Pluspetrol in the southern
region of Cuzco and forced it to be closed for maintenance from
May 12 to May 20, the report relates.

These problems and the need to meet domestic demand forced
Pluspetrol and supply plants located in Callao and operated by
state oil company Petroperu, Zeta Gas and Repsol to make use of
available LPG inventories, the report says.

This situation does not allow the recovery of inventories, and the
possibility that more large waves may affect supplies at the
plants in Callao could reduce deliveries of LPG to customers in
Lima and Callao, Peru's main seaport, the ministry said, adds the

P U E R T O    R I C O

NEWPORT BONDING: A.M. Best Places FSR of 'C' Under Review
A.M. Best Co. has placed under review with negative implications
the financial strength rating of C (Weak) and the issuer credit
rating of "ccc" of Newport Bonding and Surety Company (Newport)
(Hato Rey, PR).

The under review status reflects the significant uncertainty
regarding Newport's overall financial condition as it has not yet
filed its year-end 2014 annual statement.  The ratings will remain
under review pending A.M. Best's receipt of the annual statement,
as well as discussions with management to determine the underlying
reasons for the delay in filing.  Upon receipt, A.M. Best will
review the financial condition of Newport and determine whether
its current ratings are appropriate.

V I R G I N  I S L A N D S

LAWNDALE GROUP: Chapter 15 Case Summary
Chapter 15 Petitioner: John David Ayres

Chapter 15 Debtor: Lawndale Group S.A.
                   Vanterpool Plaza
                   P.O. Box 873 Wickhams Cay 1
                   Road Town, Tortola

Chapter 15 Case No.: 15-11352

Type of Business: Oil Trading Business

Chapter 15 Petition Date: May 22, 2015

Court: United States Bankruptcy Court
       Southern District of New York (Manhattan)

Chapter 15 Petitioner's Counsel: James H. Power, Esq.
                                 Michael J. Frevola, Esq.
                                 Arthur E. Rosenberg, Esq.
                                 Warren E. Gluck, Esq.
                                 Sean P. Barry, Esq.
                                 HOLLAND & KNIGHT, LLP
                                 31 West 52nd Street
                                 New York, NY 10019
                                 Tel: (212) 513-3200
                                 Fax: (212) 385-9010

Estimated Assets: $100,000 to $500,000

Estimated Liabilities: $10 million to $50 million

A full-text copy of the petition is available for free at:



* Moody's Sees Currency Volatility as Credit Concern in LatAm
The depreciation of Latin American currencies since mid-2014 is
unlikely to reverse soon and some could weaken even further, says
Moody's Investors Service. The rating agency therefore expects
devaluation and currency volatility to persist as a credit concern
for the Latin America's sovereigns, companies and banks for at
least a year.

Since September 2014, the Brazilian real is down 33%, the Mexican
peso is off 16%, and the Peruvian sol has declined 11%.

"A prolonged period of currency volatility and devaluation is
credit negative, to varying degrees, for Latin American sovereigns
and firms facing US dollar denominated debt refinancing needs or
diminished funding options for growth," says Gersan Zurita, a
Senior Vice President at Moody's in the report "Greater Currency
Depreciation and Higher Volatility Are Raising Credit Risk for
LATAM Sovereigns, Companies And Banks."

The report examines foreign exchange risk for debt issuers in
Brazil and Mexico, the region's two largest economies, as well as
in Peru, where financial dollarization remains high.

For the governments of Brazil (Baa2 negative), Mexico (A3 stable)
and Peru (A3 stable), borrowing costs may rise, but access to
domestic capital markets will alleviate the stress, says Moody's.

The sovereigns' exposure to exchange rate fluctuations has
decreased over the past decade because governments have taken
advantage of deepening local capital markets, reducing their
dependence on foreign currency debt.

Among the three countries, Brazil has the lowest ratio of foreign-
currency debt to GDP at 3.7%, while Peru has the highest, at a
still manageable 9.8% of GDP.

In the corporate sector, weak currencies help exporters, but hurt
firms that have large foreign-currency debts and those that depend
on imported inputs. Chemicals, metals, protein and paper exporters
in Mexico and Brazil, such as Mexichem, S.A.B. de C.V. (Baa3
stable) and Braskem S.A. (Baa3 negative), are best positioned to
benefit from a competitive currency devaluation, says Moody's.

A weaker real also helps Brazil's protein producers, such as JBS
S.A. (Ba2 stable) and BRF S.A. (Baa3 stable). Oil firms such as
Brazil's Petroleo Brasileiro S.A. (Ba2 stable) and Mexico's
Petroleos Mexicanos (A3 stable) will have to spend more to import
the oil they use to produce fuel, and retailers and airlines with
cross-border businesses and foreign debt are also at risk.

Banks have little foreign currency funding, but may face a decline
in asset quality, says the rating agency.

Moody's expects Latin America's currencies to remain depressed
against the US dollar for longer than the relatively brief but
dramatic period of decline in 2013, when markets reacted to
signals that the Federal Reserve would begin winding down its
quantitative easing program. Reasons that will prolong their
weakness include slower growth in China, which will diminish
demand for commodities and reduce foreign trade.

* Moody's Says Caribbean Sovereign Credit Quality Stabilizes
Regional growth in the Caribbean will accelerate in 2015-16 as a
result of the recovering tourism industry and sustained low oil
prices, helping the credit quality of the sovereigns in the region
stabilize following negative pressure in 2014, says Moody's
Investors Service in the report "Sovereign Outlook -- Caribbean:
Sovereign Credit Quality Supported by Recovery in Tourism, Low Oil

Median growth in the Caribbean was 1.5% in 2014 and should
accelerate to 2.0% in 2015. In addition, government debt, which
rose following the financial crisis, is slowly stabilizing or in
some cases declining, putting average sovereign debt metrics on
par with those in Latin America.

Debt ratios are stabilizing in Belize, the Bahamas, the Dominican
Republic, Cuba, Bermuda, Saint Maarten and Trinidad. However, debt
pressures are increasing in Barbados and St. Vincent, while they
are easing in the Cayman Islands.

Nevertheless, the overall stabilization in debt levels in the
region will help support current rating levels over the next 12-18

The pickup in the tourism industry is credit positive for the
Bahamas (Baa2 stable), Barbados (B3 negative), Belize (Caa2,
stable), Bermuda (A1 stable), Cayman Islands (Aa3, stable),
Jamaica (Caa3 positive), St. Maarten (Baa1 stable), St. Vincent
and the Grenadines (B3 negative), because their economies depend
heavily on tourism.

The tourism recovery largely reflects improving economic
conditions in the US and will continue to depend on the on the
strength of the recoveries in the US and the UK through 2016.

"Although the rebound in tourism will help all Caribbean nations
that rely on this industry, the individual credit effects will
reflect each country's dependence on this industry," says Gabriel
Torres, a Moody's Vice President and Senior Credit Officer.

Barbados, Belize, the Bahamas and St. Maarten are most dependent
on tourism.

Lower oil prices have also helped spur tourist growth, with fuel
costs for airlines dropping significantly in 2014 and expected to
continue their decline in 2015. They will also support domestic
demand and consumer spending by easing current and expected
inflation levels.

However, lower oil prices are credit negative for Trinidad &
Tobago. The sharp drop in energy prices will significantly reduce
government revenues, the current account surplus and foreign
direct investment flows.

While Belize is a net oil-importing country, the decline in its
petroleum production will have a significant negative effect on
government finance.

* BOND PRICING: For the Week From May 18 to May 22, 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.
Send announcements to


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

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

Copyright 2015.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000 or Nina Novak at

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