TCRLA_Public/150527.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     L A T I N   A M E R I C A

            Wednesday, May 27, 2015, Vol. 16, No. 103


                            Headlines



A R G E N T I N A

ARGENTINA: It's Deja Vu for Bond Traders as CPI is Deemed Unreal
GALILEO GLOBAL: Moody's Rates Global Scale Bond Fund at B-bf
YPF SA: Strikes Oil in Southern Province of Rio Negro


B R A Z I L

USIMINAS: Moody's Says Halt of Blast Furnaces is Credit Negative


C A Y M A N  I S L A N D S

ACT INVESTMENT: Shareholders' Final Meeting Set for June 9
ECP GALAXY: Shareholders' Final Meeting Set for June 2
H&F SENSOR 1: Shareholders' Final Meeting Set for June 2
H&F SENSOR 2: Shareholders' Final Meeting Set for June 2
INVESTAR SEMICONDUCTOR: Members' Final Meeting Set for June 8

INVESTAR SEMICONDUCTOR (II): Members' Final Meeting Set for June 8
JAPAN HOSPITALITY: Members' Final Meeting Set for June 4
LEHMAN BROTHERS: Members' Final Meeting Set for June 4
SSP ENERGY: Members' Final Meeting Set for June 2
TANGERINE INTERNATIONAL: Members' Final Meeting Set for June 2


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Exec Says Mining Must Reflect Reality


J A M A I C A

JAMAICA: Government Employment Declines
JAMAICA: BOJ Reveals Growth in Construction Sector in Jan-March


M E X I C O

ELEMENTIA S.A.: Fitch Affirms 'BB+' IDR; Outlook Stable
GRUPO TMM: Auditor Expresses Going Concern Doubt
RAMOS ARIZPE: Moody's Ups Issuer Ratings to Ba3/Baa1.mx


                            - - - - -


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A R G E N T I N A
=================


ARGENTINA: It's Deja Vu for Bond Traders as CPI is Deemed Unreal
----------------------------------------------------------------
Camila Russo at Bloomberg News reports that barely a year after
re-jiggering its inflation statistics to make them more credible,
Argentina is again losing traders' confidence the numbers reflect
reality.

Securities linked to consumer prices are falling by the most in
nine months as the gap widens between the official and private
estimates for everything from food to education costs, according
to Bloomberg News.

The debt has tumbled 2.5 percent in the past month, the biggest
drop on a 30-day rolling basis since August, while similar bonds
in Latin America gained, according to Barclays Plc, Bloomberg News
relates.

Bloomberg News says that Argentina unveiled new inflation data in
February 2014 after getting censured by the International Monetary
Fund.

The bonds rallied on speculation the decision would prompt the
government to start reporting inflation that was closer to private
estimates, which are currently running at 29 percent, Bloomberg
News notes.  That hasn't happened.  What's more, a slumping
economy is causing official inflation to slow, cutting into
returns, Bloomberg News notes.

"It's become clear that the government still isn't willing to
recognize reality," said Maximiliano Castillo, a former central
bank economist, who's now director of Buenos Aires-based research
firm ACM SA, Bloomberg News relays.

Yields on benchmark peso bonds rose to a two month high of 8.2
percent after the government on May 15 reported monthly inflation
of 1.1 percent in April, or an annual rate of 15.8 percent,
Bloomberg News notes.  That's about half private economists'
estimates.

                           Congress Index

Economy Minister Axel Kicillof said inflation this year may be as
low as 15 percent while 14 economists surveyed by Bloomberg
estimate consumer prices will increase 19.7 percent.

Mr. Kicillof has said the new nationwide index accurately reflects
rural and urban realities and not just costs in the capital of
Buenos Aires, Bloomberg News relates.

The government began to underreport price increases in 2007 when
then President Nestor Kirchner overhauled staff at the National
Statistics Institute, Bloomberg News says.  In 2011, the
government fined private consulting firms that published inflation
estimates contradicting theirs, Bloomberg News notes.

Two years later, Argentina became the first nation to be censured
by the IMF for failing to report accurate data, Bloomberg News
relays.

Investors in the country's inflation-linked bonds have lost out on
$14 billion since 2007, according to estimates by ACM Consultores,
as the returns increase in line with the official consumer price
index, Bloomberg News notes.

"The bonds aren't attractive anymore because official inflation is
slowing to an annual 15 percent from 25 percent, so they're losing
10 points," said Jorge Podesta, a fixed-income analyst at Buenos
Aires-based brokerage Allaria Ledesma y Cia, Bloomberg News
discloses.

"We don't think this will change in the next few months,"
Bloomberg News quoted Mr. Podesta as saying.

                         Changes Ahead?

The consensus among economists is that a new administration, which
will take office in December after elections Oct. 25, will improve
economic data reporting, Bloomberg News notes.  Still, investors
aren't willing to take the risk due to the political uncertainty,
ACM's Castillo said, Bloomberg News relays.

"Whoever is elected needs to make data transparent," said Mr.
Castillo, notes the report.  "Everyone knows it needs to be done.
The question is how and when," Mr. Castillo added.

                            *     *     *

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

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

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

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

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

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

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

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

On April 22, 2015, Moody's Investors Service expanded the portion
of Argentina's debt that is rated (P)Caa2. The (P)Caa2 rating
reflects the higher risk of default for both Argentina's
restructured foreign legislation debt (as before) and,
additionally now, its restructured local legislation foreign
currency obligations, as compared with the risk of default on
other debt instruments issued by Argentina.  Argentina's local
currency debt and its non-restructured foreign currency debt are
rated Caa1. The debt that remains in default since Argentina's
2001 default is rated Ca.


GALILEO GLOBAL: Moody's Rates Global Scale Bond Fund at B-bf
------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has
assigned bond fund ratings to Galileo Global FCI, a newly launched
fund that will be managed by Galileo Argentina SGFCI SA.

The ratings assigned are as follows:

  -- Global scale bond fund rating: B-bf

  -- National scale bond fund rating: A-bf.ar

"The ratings are based on the Fund's model portfolio composition
that shows an adequate diversification of invested assets mainly
in government, corporates and sub-sovereign bonds and asset backed
securities with global ratings between B-bf/Aa-bf.ar and Caa-
bf/Baa-bf.ar. The more liquid portion of the Fund is expected to
be invested in local mutual funds and sight accounts. Based on
this portfolio composition, the Fund is expected to maintain a
maturity-adjusted weighted average credit quality consistent with
a rating level of B-bf/A-bf.ar. This portfolio will attempt to
provide a return similar to the local inflation rate with an
average duration between one and three years," said Moody's lead
analyst Carlos de Nevares.

The new fund expects key shareholders to be institutional
investors such as local insurance companies and high net worth
individuals who have historically been clients of Galileo.

Galileo Argentina SGFISA, part of a well-known local and
independent mid-sized asset manager in the Argentinean mutual fund
Industry with a market share of 1.0%. As of April 2015, Galileo
managed approximately AR$1,681.7 million in assets.


YPF SA: Strikes Oil in Southern Province of Rio Negro
-----------------------------------------------------
Jorge Otaola at Reuters reports that Argentine state-controlled
energy company YPF SA said it has discovered a conventional oil
field in the southern province of Rio Negro with reserves of
around 40 million barrels of oil.

The "Manzano Grande x-1" well was drilled to a depth of around
3,000 meters (9,850 feet) and is the company's second discovery in
the Los Caldenes block, YPF SA said in a statement obtained by
Reuters.

YPF has had the concession for the area since 2001, recently
renewed to 2036.

Argentina nationalized YPF in 2012 after accusing its former
parent, Spain's Repsol SA, of under-investing and thereby
generating a costly energy deficit for Latin America's No. 3
economy, the report ntoes.

The country hopes that by increasing investment in the vast Vaca
Muerta formation, also in southern Patagonia, it will be able to
reduce energy imports, which are draining its low foreign
reserves, the report adds.

                          *     *     *

As reported in the Troubled Company Reporter-Latin America on
April 27, 2015, Fitch Ratings expects to assign a rating of 'CCC'
to YPF S.A.'s (YPF) proposed senior unsecured bond issuance of up
to USD1.5 billion with a 10-year bullet maturity. On April 22, the
company announced in the Argentine Comision Nacional de Valores
(CNV) it intended to issue up to USD500 million in international
bonds; however, based on increased market interest the company is
now looking to issue up to USD1.5 billion. The proceeds will be
used to fund fixed asset investments in Argentina and working
capital requirements.


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B R A Z I L
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USIMINAS: Moody's Says Halt of Blast Furnaces is Credit Negative
----------------------------------------------------------------
Moody's Investors Service commented that the temporary halt of
blast furnaces is credit negative for Usinas Siderurgicas de Minas
Gerais S.A. (Ba3 stable) because will reduce the company's annual
pig iron output by 1.4 million tons and annual EBITDA generation
capacity by an estimated BRL386 million (based on current EBITDA
per ton), despite the cost savings related to the shutdown.


==========================
C A Y M A N  I S L A N D S
==========================


ACT INVESTMENT: Shareholders' Final Meeting Set for June 9
----------------------------------------------------------
The shareholders of Act Investment Ltd. will hold their final
meeting on June 9, 2015, at 9:00 a.m., to receive the liquidator's
report on the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Delio Jose De Leon Mela
          Salduba Building
          Top Floor
          East 53rd Street
          Urbanizacion
          Panama City
          Republic of Panama
          Telephone: (507) 269-2641
          Facsimile: (507) 263-8079


ECP GALAXY: Shareholders' Final Meeting Set for June 2
------------------------------------------------------
The shareholders of ECP Galaxy Holdings 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:

          Alex T. Krueger
          c/o Matt Bernardo
          One Lafayette Place, 3rd Floor
          Greenwich, Connecticut, 06830
          United States of America
          Telephone: +1 (345) 914 4268


H&F SENSOR 1: Shareholders' Final Meeting Set for June 2
--------------------------------------------------------
The shareholders of H&F Sensor Cayman 1 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:

          Arrie Park
          H&F Corporate Investor VI (Cayman), Ltd.
          Intertrust Corporate Services (Cayman) Limited
          190 Elgin Avenue George Town
          Grand Cayman, KY1-9005
          Cayman Islands
          c/o Niall Hanna
          Walkers
          190 Elgin Avenue, George Town
          Telephone: +1 (345) 914 4201


H&F SENSOR 2: Shareholders' Final Meeting Set for June 2
--------------------------------------------------------
The shareholders of H&F Sensor Cayman 2 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:

          Arrie Park
          H&F Corporate Investor VI (Cayman), Ltd.
          Intertrust Corporate Services (Cayman) Limited
          190 Elgin Avenue George Town
          Grand Cayman, KY1-9005
          Cayman Islands
          c/o Niall Hanna
          Walkers
          190 Elgin Avenue, George Town
          Telephone: +1 (345) 914 4201


INVESTAR SEMICONDUCTOR: Members' Final Meeting Set for June 8
-------------------------------------------------------------
The members of Investar Semiconductor Development Fund, Inc. will
hold their final meeting on June 8, 2015, to receive the
liquidators' 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


INVESTAR SEMICONDUCTOR (II): Members' Final Meeting Set for June 8
------------------------------------------------------------------
The members of Investar Semiconductor Development Fund, Inc. (II)
LDC will hold their final meeting on June 8, 2015, to receive the
liquidators' 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


JAPAN HOSPITALITY: Members' Final Meeting Set for June 4
--------------------------------------------------------
The members of Japan Hospitality Management Inc. will hold their
final meeting on June 4, 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


LEHMAN BROTHERS: Members' Final Meeting Set for June 4
------------------------------------------------------
The members of Lehman Brothers Private Convertible Fund Limited
will hold their final meeting on June 4, 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


SSP ENERGY: Members' Final Meeting Set for June 2
-------------------------------------------------
The members of SSP Energy Ltd. will hold their final meeting on
June 2, 2015, at 9:00 a.m., to receive the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Richard Fear
          c/o Tania Dons
          Telephone: (345) 814 7766
          Facsimile: (345) 945 3902
          P.O. Box 2681 Grand Cayman KY1-1111
          Cayman Islands


TANGERINE INTERNATIONAL: Members' Final Meeting Set for June 2
--------------------------------------------------------------
The members of Tangerine International 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:

          Jess Shakespeare
          c/o Kinetic Partners (Cayman) Limited
          The Harbour Centre
          42 North Church Street
          P.O. Box 10387 Grand Cayman KY1-1004
          Cayman Islands
          Telephone: (345) 623 9900
          Facsimile: (345) 943 9900


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D O M I N I C A N   R E P U B L I C
===================================


DOMINICAN REPUBLIC: Exec Says Mining Must Reflect Reality
---------------------------------------------------------
Dominican Today reports that Dominican Republic Energy and Mines
Minister Antonio Isa Conde demanded that sectors pick up the pace
to pass the Land Use Law as soon as possible, as starting point
for a comprehensive mining policy based on Dominican Republic's
reality.

Mr. Conde said mining shouldn't be managed like a ship adrift and
instead developed with the island's fragile environment in mind,
the people's development and their habitat, according to Dominican
Today.

"We live on an island whose ecosystem has been severely beaten and
our reality isn't similar to other countries such as Chile,
Argentina and Peru, with remarkable development in extractive
mining," the report quoted Mr. Conde as saying.

The report notes that Mr. Conde said despite that mining
exploration and concessions in the country are being carefully
studied, a Land Use Law is absolutely needed as a consistent
policy.

"Very dear people work in this project but I must say that it
marches like syrup, very slow and should be accelerated, because
it's an emergency in the country," the official said in an
interview by journalists Edith Febles and Marino Zapete on
Colorvision Channel 9, the report relays.

In another topic, Mr. Conde revealed that he has already spoken
with Barrick Gold Pueblo Viejo representatives to find solutions
to the contaminated residues dam El Yagal, which he affirms
requires urgent cleanup to reduce environmental risks, the report
adds.


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J A M A I C A
=============


JAMAICA: Government Employment Declines
---------------------------------------
RJR News reports that the number of people employed by the
Jamaican State fell by 13 per cent last year.

That's the finding of the 2014 Economic and Social Survey of
Jamaica, according to RJR News.

The report notes that the survey found that the number of
government employees was under 146,000 at the end of the year.

The decline has been attributed to efforts to reduce the number of
public sector workers, to attrition or the elimination of vacant
posts to reduce the wage bill as a percentage of Gross Domestic
Product (GDP), the report notes.

During the same period, the number of persons employed by the
private sector increased by 2 per cent, the report relays.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 23, 2015, Fitch Ratings has affirmed Jamaica's long-term
foreign and local currency Issuer Default Ratings (IDRs) at 'B-'.
The issue ratings on Jamaica's senior unsecured foreign and local
currency bonds are also affirmed at 'B-'.  The Rating Outlooks on
the long-term IDRs are revised to Positive from Stable.  The
Country Ceiling is affirmed at 'B' and the short-term foreign
currency IDR at 'B'.


JAMAICA: BOJ Reveals Growth in Construction Sector in Jan-March
---------------------------------------------------------------
RJR News reports that the Bank of Jamaica disclosed that the
construction sector recorded growth during the January to March
quarter this year.  This was in keeping with a trend observed
since the March 2013 quarter.

The Central Bank said the industry's performance occurred in a
context of infrastructural projects under the Major
Infrastructural Development Program and greater expenditure on
hotel projects, according to RJR News.

Economic activity in the industry was however moderated by lower
expenditure on some major infrastructure projects, particularly
Highway 2000, as well as a contraction in housing starts by the
National Housing Trust, the report notes.

                        Mining, Quarrying

During the first three months of this year there was also marginal
growth in the Mining and Quarrying sector, in contrast to declines
for the preceding three quarters, the report relates.

The BoJ, in its quarterly monetary policy report, said the
industry's performance was underpinned by marginal increases in
alumina and crude bauxite production, the report discloses.  This
resulted from increased utilization at one alumina plant, the
report says.

Regarding crude bauxite, the expansion for the March 2015 quarter
continued the upward trend, evident since the March 2014 quarter,
although at a pace significantly below the average growth recorded
in the previous three quarters, the report adds.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 23, 2015, Fitch Ratings has affirmed Jamaica's long-term
foreign and local currency Issuer Default Ratings (IDRs) at 'B-'.
The issue ratings on Jamaica's senior unsecured foreign and local
currency bonds are also affirmed at 'B-'.  The Rating Outlooks on
the long-term IDRs are revised to Positive from Stable.  The
Country Ceiling is affirmed at 'B' and the short-term foreign
currency IDR at 'B'.


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M E X I C O
===========


ELEMENTIA S.A.: Fitch Affirms 'BB+' IDR; Outlook Stable
-------------------------------------------------------
Fitch Ratings has affirmed Elementia, S.A. de C.V.'s (Elementia)
foreign and local currency Issuer Default Ratings (IDRs) at 'BB+'
as well as its long-term national scale rating at 'A+(mex)'.

The Rating Outlook is Stable.

Elementia's ratings reflect its strong business profile
characterized by geographic and product line diversification,
leading market shares in the regions where it has presence,
supported by highly recognized brands and a well-developed
distribution network, stable operating results and its
shareholders' strength.  Factors that limit Elementia's ratings
are the company's history of high leverage, industry cyclicality
and input cost volatility.

KEY RATING DRIVERS

Continued Business Diversification

The company's business position is supported by its diversified
revenue base.  For the LTM ended March, 2015 net sales and EBITDA
contribution by business line was: metals division (mainly copper
products) 48% and 32% respectively, building systems (including
plastics division) 38% and 42% respectively, and Cement 13% and
21%, respectively.  Elementia's cash flow and profitability are
supported by its pricing strategy and by the contribution of its
cement division, its highest margin business.  In its metal
segment, the company applies a cost-plus margin formula, allowing
it to pass-through metal price variations to end customers.

The company's strategy will continue to focus on growing its
current operations and through acquisitions.  In December 2014,
Elementia finalized the acquisition of the remaining 47% stake in
ELC Tenedora de Cementos, S.A.P.I. de C.V., its joint venture with
Financiere Lafarge S.A.S. (Lafarge), and has paid USD180 million
of the USD225 million total purchase price.  The purchase
agreement contemplates a final payment of the USD45 million
remaining in December 2015, a year after completion of the
transaction.

Negative FCF during 2015-2016

During 2014, the company's free cash flow (FCF), measured as cash
flow from operations after interest paid (CFFO), capex and
dividends was positive MXN749 million comparing favorably to
negative MXN100 million during 2013, primarily as a result of
lower capex.  Fitch expects Elementia's FCF to be negative in
aggregate during 2015 and 2016 as a result of expansionary
investments in the company's cement business.  These investments
will increase Elementia's cement capacity by 1.5 million tons per
year to 3.5 million tons per year.  Fitch's base case FCF
projection incorporates CFFO of approximately MXN1.6 billion in
2015 and MXN1.9 billion in 2016, and no dividend payments.

The company plans to finance its USD250 million expansion of its
Tula, Hidalgo cement plant through a combination of internal and
external funding sources including an equity issuance.  Management
has filed documentation for an initial public offering (IPO) in
the Mexican Bolsa.  While Fitch has not included an equity
issuance in its base case, equity proceeds used to fund the
company's growth plans would be viewed positively for Elementia's
credit quality as it would support deleveraging the balance sheet
and help stabilize its credit metrics.

High Leverage Constrains Rating

Elementia's leverage has been historically volatile partly due to
greenfield investments in the company's cement division as well as
asset acquisitions and dispositions within the company's business
portfolio.  Just during the last eight quarters, Elementia's net
leverage on a LTM basis has fluctuated between a peak of 3.4x in
September 2013 to a low of 1.5x in September 2014.  As of March,
2015 net leverage was 2.7x, above management's long-term target of
2.0x, primarily due to the purchase of the Lafarge assets.  Gross
leverage as of March 2015 was 3.8x, higher than the 2.9x
registered in the same period a year ago and similar to the 3.9x
recorded as of Dec. 31, 2014.

In Fitch's view, leverage volatility should moderate considering
the full contribution of Elementia's cement business and an equity
issuance would further increase its flexibility to finance current
projects and pay down existing debt.  Although Fitch considers
that Elementia currently has flexibility within its 'BB+' rating
to continue to finance its growth strategy without raising equity,
deterioration in leverage ratios or large debt financed
acquisitions or investments could pressure the company's credit
profile.

Adequate Liquidity

As of March 31, 2015, the company had sufficient liquidity to meet
its upcoming debt obligation of MXN3.0 billion of Certificados
Bursatiles due in October 2015.  Cash and cash equivalent balance
was MXN3.1 billion and covers its short-term debt by 1.0x; the
company has no other significant debt maturities until 2025.
Further supporting the company's liquidity position are USD300
million of undrawn committed credit lines maturing in 2018.  Fitch
expects that Elementia's internally generated cash flows and
financial flexibility will allow it to manage its debt profile.

Environmental Regulations Could Limit Operations

The company uses chrysotile fibers (the sole form of asbestos
still in use) for part of its production of fiber-cement products,
which are sold locally where permitted in the North and South
American regions.  Elementia has been investing in capacity
production to use different fibers, such as cellulose fiber and
polyvinyl alcohol (PVA), with the majority of its manufacturing
facilities already aligned to produce with different technologies.
The use of this fiber is in line with international standards and
local environmental regulations.  Even though Elementia has not
been subject to legal claims regarding the use of chrysotile in
its products, future claims cannot be ruled out, resulting in
uncertain litigation risk.

KEY ASSUMPTIONS

   -- Low double digit revenue growth in 2015 reflecting higher
      capacity utilization and price improvement in cement
      division; stable to low single digit volumes growth and
      strong USD in metals division;

   -- Mid to high single digit revenue growth for 2016-2017;

   -- EBITDA margin around 17% from 2015-2017;

   -- Cash and cash equivalents balances of around MXN1 billion;

   -- Partial use of committed credit lines to fund debt payments
      or investments;

   -- Net debt/EBITDA at or below 2.8x for 2015-2016.

RATING SENSITIVITIES

Negative factors that could affect the company's credit profile
include, among others, declining market shares along business
lines and loss of competitive position, reduced operating cash
flows and profitability; and reduced liquidity; reaching or
exceeding financial covenants could also put additional pressure
on the company's credit quality.  Expectations of total
debt/EBITDA above 4x or net debt/EBITDA above 3.5x would likely
result in negative rating actions.

Positive rating actions could be driven by strengthening of
Elementia's business and financial positions.  Positive FCF
generation and stable operating results through industry and
economic cycles resulting in leverage levels of total debt/ EBITDA
around 2.5x and net debt/EBITDA below 2x would have positive
implications for the rating.  Significant delevering resulting
from an IPO would improve the company's financial position and
would be viewed positively.

Fitch has affirmed Elementia's ratings as:

   -- Long-term Issuer Default Rating (IDR) at 'BB+';

   -- Long-term Local Currency IDR at 'BB+';

   -- Long-term National Scale Rating at 'A+(mex)';

   -- Sr. unsecured USD425 million notes issuance at 'BB+';

   -- MXN3,000 million Local Certificados Bursatiles due in 2015
      at 'A+(mex)'.


GRUPO TMM: Auditor Expresses Going Concern Doubt
------------------------------------------------
Grupo TMM, S.A.B., reported a net loss of MXN515 million on
MXN2.87 billion of revenue from transportation in 2014, compared
with a net loss of MXN551 million on MXN2.83 billion of revenue
from transportation in the prior year.

Salles, Sainz-Grant Thornton, S.C., expressed substantial doubt
about the Company's ability to continue as a going concern, citing
that the Company has incurred recurring losses, principally as a
result of its comprehensive financing cost.

The Company's balance sheet at Dec. 31, 2014, showed MXN12.9
billion in total assets, MXN12.3 billion in total liabilities and
total stockholders' equity of MXN637 million.

A copy of the Form 20-F for the year ended Dec. 31, 2014, filed
with the U.S. Securities and Exchange Commission is available at:

                       http://is.gd/orAeHI

Mexico City-based Grupo TMM, S.A.B. (OTC: GTMAY and BMV: TMM A)
is a Latin American intermodal transportation company.  Through
its branch offices and network of subsidiary companies, TMM
provides ocean and land transportation services.


RAMOS ARIZPE: Moody's Ups Issuer Ratings to Ba3/Baa1.mx
-------------------------------------------------------
Moody's de Mexico upgraded the Municipality of Ramos Arizpe issuer
ratings to Ba3/Baa1.mx from B1/Baa2.mx. The outlook on the ratings
is stable.

The upgrade of Ramos Arizpe's ratings reflects (1) the
municipality's persistently high own-source revenues, (2) positive
gross operating balances, and (3) declining debt levels.

Between 2010 and 2014, Ramos Arizpe's discretionary own source
revenues averaged 55.7% of operating revenues, one of the highest
levels among Mexican municipalities rated by Moody's. This has
resulted in an improvement in liquidity above the level exhibited
by B1-rated municipalities.

Between 2010 and 2014, Ramos Arizpe's operating revenues increased
at a CAGR of 11% or roughly the same pace of operating
expenditures (CAGR of 12%). This resulted in high operating
balances averaging 17.2% of operating revenues throughout that
period and well above the median of Mexican municipalities rated
in the B1 category. Although Moody's expect Ramos Arizpe's
operating balances to moderate in 2015 and 2016, they will still
be in line with the credit profile of municipalities rated in Ba3.
Moody's also expect that the municipal water company (Compa¤¡a de
Aguas de Ramos Arizpe, COMPARA, unrated) will exert pressure on
the municipality's finances in the long-run.

Ramos Arizpe's debt levels declined from 42% to 12% of operating
revenues between 2010 and 2014, a low level. The change in the
municipality's financing mix from short-term debt to long-term
banking obligations has resulted in lower debt servicing needs,
passing from 7% in 2011 to 3.7% of total revenues in 2014.

Ramos Arizpe's policy of not contracting debt is balanced by an
expansion in current and capital expenditures. As a result,
Moody's expect Ramos Arizpe to exhibit roughly balanced gross
operating balances in the next two years.

Sustained recording of gross operating surpluses, combined with
declining debt levels and sustained improvements in the
municipality's liquidity position could exert upward pressure on
Ramos Arizpe's issuer ratings. Conversely, persistent
deterioration in the municipality's gross operating results,
increasing debt levels, and deterioration in the liquidity
position, and/or reliance on short-term financing, would exert
downward pressure on Ramos Arizpe's issuer ratings.

The principal methodology used in these ratings was Regional and
Local Governments published in January 2013.

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


                            ***********


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.

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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
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