/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/150706.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, July 6, 2015, Vol. 16, No. 131 Headlines A R G E N T I N A GAINVEST RENTA: Moody's Assigns B-bf Global Scale Bond Fund Rating B R A Z I L BRAZIL: Cooperation With Dominican Republic a Priority CENTRAIS ELETRICAS: Moody's Cuts USD1,750MM Bond Rating to 'Ba2' CONCESSAO METROVIARIA: Moody's Hikes Issuer Ratings to 'Ba2' JBS S.A.: S&P Revises Outlook to Stable & Affirms 'BB+' CCR C A Y M A N I S L A N D S ARHAMMAR CAYMAN: Creditors' Proofs of Debt Due July 22 CALEDONIAN GLOBAL: Court Enters Wind-Up Order CALEDONIAN GROUP: Court Enters Wind-Up Order E.WORLD: Members' Final Meeting Set for July 24 FIVE STAR: Creditors' Proofs of Debt Due July 22 HIGHCLERE HOLDINGS: Creditors' Proofs of Debt Due July 14 HIGHCLERE LIMITED: Creditors' Proofs of Debt Due July 14 HSBC NOMINEES: Commences Liquidation Proceedings HYPERION CAPITAL: Creditors' Proofs of Debt Due July 22 JPT SCARLETT: Creditors' Proofs of Debt Due July 22 C H I L E AES GENER: S&P Affirms 'BB' Rating on Jr. Subordinated Bonds AES GENER: Moody's Affirms 'Ba2' Junior Subordinated Rating AES GENER: Fitch Assigns 'BB' Rating on Jr. Subordinated Bond D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Food Imports Jump 17% in March to US$220.5MM * DOMINICAN REPUBLIC: Border Investment Initiative Gathers Steam J A M A I C A JAMAICA: Trade Deficit With USA Worsens P A N A M A PANAMA: May Accept Oil or Gas From Venezuela to Resolve Debt P U E R T O R I C O PUERTO RICO AQUEDUCT: S&P Cuts Bond Rating to 'CCC-'; Outlook Neg. PUERTO RICO ELECTRIC: S&P Lowers Underlying Rating to 'CC' PUERTO RICO: Issues Tax Anticipation Notes V E N E Z U E L A VENEZUELA: Fitch Affirms 'CCC' Issuer Default Rating X X X X X X X X X * BOND PRICING: For the Week From June 29 to July 3, 2015 - - - - - ================= A R G E N T I N A ================= GAINVEST RENTA: Moody's Assigns B-bf Global Scale Bond Fund Rating ---------------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo has assigned bond fund ratings to Gainvest Renta Mixta (the Fund), a balanced fund domiciled in Argentina that was transformed into a short-term bond fund. The Fund will be managed by Gainvest S.A.SGFCI. (Gainvest). The ratings assigned are as follows: -- Global scale bond fund rating: B-bf -- National scale bond fund rating: Aa-bf.ar RATINGS RATIONALE The Fund ratings are based on Gainvest Renta Mixta's historical portfolio composition and that is expected to continue to exhibit an average credit quality at B-bf/Aa-bf.ar. The Fund, formerly a balanced-fund, has excelusively invested in bonds for over a year and in line with the assigned rating. As of May 2015, the Fund's largest positions are in Lebacs, ABS and local corporate bonds. These account for 87.3% of total assets. The average portfolio duration is not expected to exceed 12 months. "Based on the history of the fund over the past year, the Fund's credit quality profile is comparable to those of similarly rated peers", said Moody's lead analyst Carlos de Nevares. The Fund's objective is to have a return higher than time deposits, while maintaining low volatility. It will invest mainly in Central Bank's Notes and Bills, Corporate Bonds and ABS. Deutsche Bank is the Fund custodian. Gainvest is a medium-sized asset manager in the Argentinean mutual fund Industry with a 2.87% market share. As of May 2015, Gainvest, managed assets of approximately AR$4,770 million. =========== B R A Z I L =========== BRAZIL: Cooperation With Dominican Republic a Priority ------------------------------------------------------ Dominican Today reports that the government of Brazil said cooperation with Dominican Republic is a priority, with funds for technical support to more than 10 projects concluded or underway in education, planning, health, meteorology, safety and environment and equipment for industrial textile workshop started on June 24 in the village of Consuelo, San Pedro (east). Brazil Cooperation Agency (ABC) director Fernando Marroni made the announcement to the Dominican delegation at the close the Economy Ministry's 2nd Technical Cooperation Workshop held in the capital, according to Dominican Today. The report relates that Mr. Marroni noted that for diversity, the number of institutions involved in the projects and the results "are an indicator of Brazil gives priority to cooperation with Dominican Republic". Mr. Marroni said Brasilia's bilateral aid program for the Dominican Republic is a "textbook example" of South-South cooperation, of what countries can achieve in developing cooperation "which differs from conditionality North-South, from developed countries," the report relays. In a statement by the Economy Ministry, Marroni said besides a model of cooperation, the bilateral assistance program has the political will, articulation and close coordination between the institutions of the two countries and noted the conclusion of four projects from 2013 to 2015, the report notes. Economy Deputy Minister Inocencio Garcia, Dominican ambassador in Brazi Alejandro Zarzuela, Brazil ambassador Marcus Jose Vinicius de Souza and ABC Latin America and Caribbean manager Maria Augusta Montalvo also attended the meeting, the report adds. CENTRAIS ELETRICAS: Moody's Cuts USD1,750MM Bond Rating to 'Ba2' ---------------------------------------------------------------- Moody's Investor Services downgraded to Ba2 from Ba1 the rating on Centrais Eletricas Brasileiras SA (Eletrobras)' USD 1,750 million global bond that expires on October 21, 2021. At the same time, Moody's assigned a Ba2 corporate family rating to Eletrobras, withdrew its Ba1 issuer rating and lowered the company's baseline credit assessment (BCA) to b2 from b1. The outlook on all ratings has been changed to negative. This concludes the review for possible downgrade that commenced on May 21, 2015. RATINGS RATIONALE The primary drivers of the downgrade are the financial pressures and execution risk associated with Eletrobras' ambitious capital expenditure program, weak internal cash generation and an expected deterioration in the company's liquidity position. More specifically, Moody's projections indicate that Eletrobras will continue to post weak credit metrics over the next eighteen months. Financial performance as measured by funds from operations (FFO) will remain tepid and not enable the company to meaningfully decrease its high leverage, absent a major reduction in its current capital expenditure program or some sort of capital injection. Starting in 2016, Eletrobras will no longer be able to count on the extraordinary cash flow sources, i.e., indemnification payments, as it has done over the past two years, which is likely to put additional pressure on the company's liquidity and leverage. The negative outlook reflects the uncertainties arising from potential energy rationing due to the current hydrological crisis should it continue well into 2016, which would lead to a further deterioration in the company's credit metrics; the failure of the company to file its 20F with the United States Securities Exchange Commission (SEC) which prompted a qualified opinion from its auditor KMPG with its 1st quarter financial results; the outcome of the investigation on potential bribery payments to the former CEO of the Eletronuclear subsidiary; delays and further potential cost overruns in connection with the company's new nuclear plant construction; and the company's need to raise additional funding on a timely and adequate basis to fund the balance of its aggressive capital expenditure program. In accordance with Moody's methodology for Government Related Issuers, or GRIs, the Ba2 issuer rating of Eletrobras reflects the combination of the following inputs: -- Baseline credit assessment (BCA) b2 -- High-level dependence (70%) -- High level of government support (71%-90%) -- The Baa2 rating of the Government of Brazil, which has a negative outlook. What could change the rating up In light of this rating action, an upgrade of the company's ratings is highly unlikely in the short-to-medium term. What could change the rating down Moody's would consider downgrading the ratings should the company's credit metrics deteriorate more than Moody's expects so that cash from operations before changes in working capital (CFO Pre WC) over debt ratio becomes lower than 5% and that interest coverage stays below 1.6x on a sustainable basis. There would be additional pressure for a downgrade should Moody's perceive a pronounced deterioration of Eletrobras' liquidity position, which could arise from the company's not filing the 20 F form at SEC within the granted 180-day period or having difficulties in securing timely long-term debt to meet its capital expenditure program notably for the construction of the 1.4GW nuclear power plant Angra III. The downgrade of Brazil's sovereign rating or a negative change in our expectations regarding the government's support for the company could also trigger a downgrade rating action. Eletrobras' electricity generation has installed capacity of 44 GW, which is equivalent to 33% of Brazil's total generation installed capacity, including the 7 GW capacity of Itaipu. Eletrobras' transmission lines above 230KV comprise 60,502 Km or around 48% of the country's total high voltage transmission lines. The distribution segment, largely consisting of small distribution companies in the North and Northeast portion of the country, sold 17.1 GWh or around 3% of the electricity consumed in Brazil in 2014. Eletrobras is also a financing vehicle with a consolidated portfolio of around BRL 15.9 billion in loans granted to a diverse range of Brazilian electricity companies, including USD 5.0 billion in loans to Itaipu. Eletrobras is also the Federal Government's vehicle for managing the CDE (Energy Development Account), a specific fund of the Brazilian electricity industry, and certain social programs such as the "Light For All" aimed at extending electricity to the most remote regions of the country. CONCESSAO METROVIARIA: Moody's Hikes Issuer Ratings to 'Ba2' ------------------------------------------------------------ Moody's America Latina upgraded the issuer ratings of Concessao Metroviaria do Rio de Janeiro S.A. (METRORIO) to Ba2 from Ba3 on the global scale, and to Aa2.br from A3.br on the Brazilian National Scale Rating ("NSR"). At the same time, Moody's changed the outlook to positive from stable. The rating action is also driven by the change in methodology used for METRORIO, from the Privately Managed Toll Roads Methodology to the Global Passenger Railway Companies Methodology. The use of the railway methodology resulted in no impact on METRORIO's rating or outlook. RATINGS RATIONALE The rating action reflects the overall improvement of METRORIO's credit metrics as a result of a continuous improvement in the company's financial and operating performance, as the main expansion program was finalized in 2013 and 2014. The rating action is further supported by the relatively stable and predictable operating cash flows supported by the long-term Concession contract executed with AGETRANSP-RJ, the transportation regulatory authority of the State of Rio de Janeiro as well as by a more balanced capital structure and a robust liquidity profile coupled with the strong commitment from its controlling shareholder, INVEPAR (Ba3/A2.br; stable). However, the ratings continue to be somewhat constrained by (i) the potential political interference related to fare adjustments granted by the State of Rio de Janeiro and/or (ii) the potential modifications to the current expansion plans of the mass transportation system in the City of Rio de Janeiro (Baa2 negative) which could directly impact METRORIO's operating and financial performance. RATING OUTLOOK The positive outlook reflects our expectation that: (i) METRORIO's completed expansion program will offer more transportation capacity with enhanced quality; (ii) the company's credit metrics will continue to improve as the key milestones of the CAPEX program have been successfully achieved; (iii) the company's ultimate shareholders will continue to provide financial support, if needed; (iv) the Company will continue to be able to access long-term financing from public banks such as BNDES and CEF at adequate terms; and (v) there will be no material political interference that could affect the economic equilibrium of METRORIO's concession contract. WHAT COULD CHANGE THE RATING - UP The rating could be upgraded if traffic volume increases above our forecast and if we see the continuation of stronger credit metrics and liquidity coupled with a gradual deleveraging. Also, we would upgrade the rating if the RCF / Net Debt stays above 12%, and interest coverage exceeds 3.0x on a sustainable basis. WHAT COULD CHANGE THE RATING - DOWN A rating downgrade could occur in case the financial support and commitment from the Company's ultimate shareholders is perceived to have diminished, the Company's liquidity position deteriorates, or if there is political interference that could impact the ability to adjust tariffs. Quantitatively, a rating downgrade could occur if RCF/ Net Debt stays below 7%, and Interest Coverage remains below 2.0x for an extended period. Concessao Metroviaria do Rio de Janeiro S.A. -- MetroRio ("MetroRio" or the "Company") is an urban railway passenger transportation company, which has the concession rights to operate Lines 1 and 2 of the subway system in the City of Rio de Janeiro with an extension of 42 km and 36 stations (the "Concession"). The Concession was granted by the State Government of Rio de Janeiro in 1998 for a 20-year period. In December 2007, MetroRio agreed to undertake an expansion and modernization program with capital expenditures (CAPEX) of BRL 1.2 billion that resulted in the extension of the Concession for an additional period of 20 years, until January 2038. At the end of the Concession period, the assets will revert to the State Government of Rio de Janeiro. In March/2015 LTM, according to Moody's standard adjustments, MetroRio reported net operating revenues of BRL731 million, EBITDA of BRL339 million, and net distributable income (after unusual and non-recurring items) of BRL89 million, as compared to net operating revenues of BRL702 million, EBITDA of BRL305 million, and net income of BRL61 million in FY2014. MetroRio is fully owned by Investimentos e Participacoes em Infraestrutura S.A. - INVEPAR, is controlled by the three largest Brazilian pension funds (PREVI, FUNCEF and PETROS) and the engineering and construction group OAS, which includes its subsidiaries OAS Infraestrutura S.A. (not rated), Construtora OAS S.A. (not rated) and OAS S.A. (not rated). In addition to Concessao Metroviaria do Rio de Janeiro - MetroRio, the subway concessionaire in the city of Rio de Janeiro, INVEPAR's current portfolio of concessions consists of several toll roads, such as: Linha Amarela S.A. - LAMSA (Ba2/Aa3.br; positive), Concessionaria Auto Raposo Tavares S.A. (CART, Ba2 negative) , Concessionaria Litoral Norte S.A. (CLN), Concessionaria Rio - Teresopolis S.A. (CRT), in which INVEPAR holds a 24.9% stake, Concessionaria Rota do Atlantico (CRA) and Concessionaria Bahia Norte (CBN, B1 stable), a joint-venture with Odebrecht Transport Participacoes S.A.. In February 2012, INVEPAR won the auction for the concession of the International Airport of Guarulhos (GRU Airport), the busiest airport in Latin America, which is located in the metropolitan area of the City of Sao Paulo. In March 2012, INVEPAR acquired 100% ownership of V.P.R. Brasil Participacoes S.A., which through a special purpose entity (Linea Amarilla S.A.C. or LAMSAC) controls the 40-year concession of, a 25-km urban toll road in the city of Lima, Peru. In addition, the Consortium led by INVEPAR (33.34% stake), Odebrecht Transport Participacoes S.A. (33.33%) and CCR SA (33.33%), was declared the winner of the bidding for the Transolimpica Expressway, now called ViaRio, which is part of a set of investments in preparation to the 2016 Olympic Games. In addition, in 2012 INVEPAR created Metrobarra S.A. (MetroBarra), a company that will provide rolling stock material and systems to the line 4 of Rio de Janeiro's subway network. MetroBarra also signed a put option agreement, which contains certain precedent conditions. In that year, Invepar also created PEX S.A. - a company that provides automatic toll collection services for some of its toll roads, such as LAMSA, CBN, CLN, CRT, and CRA as well as for other third-party concessionaries such as Via Lagos and the Rio-Niter¢i bridge. In 2013, INVEPAR added two new concessions to its growing portfolio: (i) VLT Carioca (VLT -- not rated): In May 2013 the VLT Carioca consortium, in which INVEPAR has a 24.8% stake, was awarded a 25-year concession to develop a light rail transit system that will connect the Rio de Janeiro port area with the financial district and the Santos Dumont airport in downtown Rio de Janeiro; (ii) Via 040 (not rated): in December 2013, INVEPAR won the bid for the 30-year concession to expand, operate and maintain BR-040/DF/GO/MG, a 936.8 km highway that connects the capital city Brasilia to Juiz de Fora, in the State of Minas Gerais (Baa3, negative) JBS S.A.: S&P Revises Outlook to Stable & Affirms 'BB+' CCR ----------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on JBS S.A. and its subsidiary, JBS USA, to stable from positive. In addition, S&P affirmed its 'BB+' global scale corporate credit and issue-level ratings on both companies. S&P also affirmed its 'brAA+' national scale rating on JBS. The outlook revision follows S&P's expectation that JBS may subordinate financial discipline to growth in the future and that could exacerbate cash flow and ratio volatility. Also a clearer financial policy would be required for an upgrade to investment grade. JBS has just announced two opportunistic acquisitions: Europe -- based Moy Park and the U.S. pork division from Cargill, for a total of approximately $3 billion. The latter totals about $1.45 billion and will require antitrust approval. Although the company has a proven track record of improving margins and cash flow generation of acquired businesses, S&P believes its financial discipline would continue to be subordinated to M&A opportunities, which in essence impairs cash flow predictability. This has led S&P to revise its management and governance score to "fair" from "satisfactory." S&P now forecasts JBS to report revenues of more than R$160 billion on a pro forma basis in 2015, with consolidated margins close to 8%, which are similar to S&P's previous estimates. ========================== C A Y M A N I S L A N D S ========================== ARHAMMAR CAYMAN: Creditors' Proofs of Debt Due July 22 ------------------------------------------------------ The creditors of Arhammar Cayman Limited are required to file their proofs of debt by July 22, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 29, 2015. The company's liquidator is: K.D. Blake P.O. Box 493 Grand Cayman KY1-1106 Cayman Islands c/o Giji Alex Telephone: +1 (345) 914-4350/ +1 (345) 949-4800 Facsimile: +1 (345) 949-7164 P.O. Box 493 Grand Cayman KY1-1106 Cayman Islands CALEDONIAN GLOBAL: Court Enters Wind-Up Order --------------------------------------------- On June 5, 2015, the Court of Cayman Islands entered an order to wind up the operations of Caledonian Global Financial Services Inc. The company's liquidators are: Keiran Hutchison Claire Loebell Ernst & Young Ltd. 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands CALEDONIAN GROUP: Court Enters Wind-Up Order -------------------------------------------- On June 5, 2015, the Court of Cayman Islands entered an order to wind up the operations of Caledonian Group Services Limited. The company's liquidators are: Keiran Hutchison Claire Loebell Ernst & Young Ltd. 62 Forum Lane, Camana Bay P.O. Box 510 Grand Cayman KY1-1106 Cayman Islands E.WORLD: Members' Final Meeting Set for July 24 ----------------------------------------------- The members of E.World (Holdings) Ltd. will hold their final meeting on July 24, 2015, at 2:30 p.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ng Kwok Cheung Bernard c/o Michelle R. Bodden-Moxam Telephone: (345) 946-6145 Facsimile: (345) 946-6146 Portcullis TrustNet (Cayman) Ltd The Grand Pavilion Commercial Centre Oleander Way, 802 West Bay Road P.O. Box 32052 Grand Cayman KY1-1208 Cayman Islands FIVE STAR: Creditors' Proofs of Debt Due July 22 ------------------------------------------------ The creditors of Five Star Investment Limited are required to file their proofs of debt by July 22, 2015, to be included in the company's dividend distribution. The company commenced wind-up proceedings on May 22, 2015. The company's liquidators are: Lyndsey Mcgillivray Blake Applegate Citron 2004 Limited Telephone: + 44 1534 282276 Facsimile: + 44 1534 282400 23-25 Broad Street St Helier, Jersey Telephone: 01534 282345 HIGHCLERE HOLDINGS: Creditors' Proofs of Debt Due July 14 --------------------------------------------------------- The creditors of Highclere Holdings Limited are required to file their proofs of debt by July 14, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on May 8, 2015. The company's liquidator is: Appleby Trust (Cayman) Ltd. c/o Richard Gordon Telephone: +1 (345) 949 4900 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands HIGHCLERE LIMITED: Creditors' Proofs of Debt Due July 14 -------------------------------------------------------- The creditors of Highclere Limited are required to file their proofs of debt by July 14, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on April 28, 2015. The company's liquidator is: Appleby Trust (Cayman) Ltd. c/o Richard Gordon Telephone: +1 (345) 949 4900 75 Fort Street P.O. Box 1350 Grand Cayman KY1-1108 Cayman Islands HSBC NOMINEES: Commences Liquidation Proceedings ------------------------------------------------ On June 8, 2015, the shareholder of HSBC Nominees (Cayman) Limited resolved to voluntarily liquidate the company's business. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Jonathan Cooper c/o HSBC Cayman Services Limited 68 West Bay Road P.O. Box 1109 Grand Cayman KY1-1102 Cayman Islands Telephone: +1 (345) 914 6365 HYPERION CAPITAL: Creditors' Proofs of Debt Due July 22 ------------------------------------------------------- The creditors of Hyperion Capital Ltd are required to file their proofs of debt by July 22, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 4, 2015. The company's liquidator is: DMS Corporate Services Ltd c/o Nicola Cowan Telephone: (345) 946 7665 Facsimile: (345) 949 2877 dms House, 2nd Floor P.O. Box 1344 Grand Cayman KY1-1108 JPT SCARLETT: Creditors' Proofs of Debt Due July 22 --------------------------------------------------- The creditors of JPT Scarlett Holdings Inc. are required to file their proofs of debt by July 22, 2015, to be included in the company's dividend distribution. The company commenced liquidation proceedings on June 5, 2015. The company's liquidator is: Intertrust (Cayman) Limited 190 Elgin Avenue, George Town Grand Cayman KY1-9005 Cayman Islands c/o Jennifer Chailler Telephone: (345) 943-3100 ========= C H I L E ========= AES GENER: S&P Affirms 'BB' Rating on Jr. Subordinated Bonds ------------------------------------------------------------ Standards & Poor's Ratings Services assigned its 'BBB-' rating to AES Gener S.A.'s proposed 10-year bullet 144A million senior unsecured bond for up to $450 million. In addition, S&P affirmed its 'BBB-' corporate credit and senior unsecured ratings on the company. S&P also affirmed its 'BB' rating on its junior subordinated bonds due 2073. The outlook remains stable. The rating action follows the company's announcement that it will issue 10-year senior unsecured bullet bonds for up to $450 million. AES Gener will use the proceeds to refinance existing debt at the subsidiaries and holding level: Nueva Ventanas' $308 million of project finance debt due 2022, up to $120 million to tender AES Gener's existing local bonds for $102 million due 2019, and $40 million to unwind existing interest rate swaps associated with debt. On an aggregate basis, AES Gener's debt will remain unchanged. S&P expects the transaction to extend the current maturity schedule beyond 2019, lower the debt costs, and remove certain restrictive covenants, mainly at the subsidiary level. AES Gener's "satisfactory" business risk profile continues to reflect the company's strong market position in Chile as a large, efficient, and reliable power generator with large long-term power purchase agreements with solid offtakers; its business diversification due to its presence in Colombia and Argentina, and its good operating performance. "We assess AES Gener's financial risk profile as "intermediate" mainly based on its relatively strong and stable cash flow generation. We expect the company to use this revenue stream to finance capital contributions, about $225 million in capital expenditures in 2015 excluding its non-recourse power projects in Chile and the 100% dividend payouts. AES Gener has sharply increased its consolidated debt in the past five years due to the financing of new non-recourse power projects including Angamos, Cochrane, and Alto Maipo in Chile. However, a significant portion of this debt is non-recourse to AES Gener. For analytical purposes we de-consolidated debt from these three projects and their EBITDA because we believe under a stress situation AES Gener won't necessarily support them," S&P said. AES GENER: Moody's Affirms 'Ba2' Junior Subordinated Rating ----------------------------------------------------------- Moody's Investors Service assigned a Baa3 rating to AES Gener S.A.'s (Gener) proposed US$450 million 10-year senior unsecured yankee bonds. Concurrently, Moody's also affirmed Gener's Baa3 senior unsecured rating and Ba2 junior subordinated rating. The outlook on all ratings is stable. Gener will largely use the net proceeds raised in connection with the debt issuance to repay group's existing indebtedness; That is the $307.5 million balance outstanding under its subsidiary Electrica Ventanas' credit facility that is scheduled to expire in 2022 as well as to purchase the $102.2 million outstanding under Gener's 8% Series Q due in 2019. RATINGS RATIONALE Today's rating action acknowledges Gener's recent several liability management initiatives to enhance the group's access to its subsidiaries cash flows and reduce interest expenses. To that end management is using proceeds raised in connection with Gener's debt issuances to repay some of the debt outstanding at its subsidiaries. These include the current repayment of Electrica Ventana's credit facility as well as the repayment of AES Chivor's US$170 million Reg 144(A) Notes completed at the end of last year. On a consolidated basis these initiatives slightly increase the group's indebtedness; however, Moody's acknowledges that these initiatives reduce the structural subordination that applies to Gener's parent level debt to the subsidiaries' outstanding indebtedness, a credit positive. Moody's assessment considers that Gener currently holds via subsidiaries about 1,360MW out of its 1,990MW most economically efficient generation capacity operating in the Sistema Integrado Central (SIC) and Grande (SING). At year- end 2014, these subsidiaries had incurred about $1.1 billion indebtedness compared to $1.1 billion also outstanding at Gener. The full repayment of Electrica Ventanas' US$307.5 million indebtedness will reduce the operating subsidiaries' indebtedness to around $882 million compared to almost $1.6 billion at Gener. Moreover, Gener has also increased the group's financial flexibility by refinancing some of its subsidiaries' bank project facilities with less onerous corporate notes in terms of cash up- streams. In addition, defining a new repayment schedule also allows Gener to have greater access to cash flows during the current period of substantial capital expenditures. Gener is incurring about US$2.2 billion of project bank debt to finance the construction of its 532MW coal-fired Cochrane (SING) and 531MW hydro-electric Alto Maipo (SIC) facilities. This incremental debt and aggressive dividend policy has resulted in key financial metrics that are weak for the Baa3 rating category. Moody's includes the project financed debt in our key financial metric calculations despite their non-recourse nature. In Moody's opinion, potential reputational concerns and the strategic importance of these facilities would deter Gener from walking away from these projects in a distressed scenario. These projects are not expected to start contributing to Gener's cash flows before year-end 2016 and 2018, respectively. Therefore, Moody's anticipates that through this construction cycle Gener's credit metrics will continue to be weaker than its rating category for Baa-rated power producers outlined in Moody's Unregulated Power Generation Companies ratings methodology. Specifically, Moody's anticipates that the CFO pre-W/C to debt will remain below 20% through 2017. Gener's stable outlook reflects its significant market position in Chile, its modest geographic diversification and adequate liquidity profile. The rating also factors Gener's economically efficient fleet and overall balanced commercial policy that enhances its cash flow visibility. That said, despite its highly contracted position its cash flows are subject to the volatile power generation sector and some uncertainty related to the impact of the SIC-SING interconnection expected by year-end 2017. It further acknowledges Gener's liability management initiatives to reduce interest expenses and enhance its access to subsidiaries' cash flows. It also acknowledges Gener's efforts, with the use of partnerships, to reduce the financial burden associated with financing its two green-field power projects and the acquisition of Guacolda. An upgrade of Gener's ratings over the intermediate-term appears less likely given Moody's expectation that the key credit metrics will remain weak for the rating category through its construction cycle and amidst its material incremental indebtedness and aggressive dividend policy. Challenges associated with its material capex program could trigger negative pressure on Gener's rating and/or outlook. A downgrade is also likely if Gener's credit metrics deteriorate over the next few years even more than what we currently anticipate either as a consequence of a failure to maintain a balanced commercial policy, unexpected consequences from the SIC- SING interconnection, and/or the incurrence of additional debt to finance new power generation projects (for example Los Robles) amid a continued aggressive dividend policy. Specifically, failure to generate CFO pre-W/C to debt in the high teens range and CFO pre-W/C interest coverage above 4x, beyond the completion of the Alto Maipo and Cochrane facilities could trigger a downgrade. Headquartered in Santiago, Chile, AES Gener (Gener) ranks as one of the top three largest generation companies in Chile in terms of installed capacity (roughly 20% market share) and output. It is the country's largest thermal power generation company with operations in the SIC and SING The group also operates in Colombia via AES Chivor S.A. (1,000MW hydro-electric plant) while the 643MW combined cycle gas plant at Termoandes currently sells all its output in the Argentinean SADI. AES GENER: Fitch Assigns 'BB' Rating on Jr. Subordinated Bond ------------------------------------------------------------- Fitch Ratings expects to assign a rating of 'BBB-' to AES Gener S.A.'s proposed senior unsecured debt issuance of up to USD450 million with a 10-year bullet maturity. Proceeds from the 144A/RegS bond issuance will be used to refinance existing debt and will not result in additional significant indebtedness. Funds from the issuance will go towards refinancing USD308 million of existing Nueva Ventanas project finance debt with a maturity of 2022, unwinding related interest rate swaps, and tendering for existing local USD denominated bonds maturing in 2019 and totalling USD102.2 million. The notes will be rated the same as all of AES Gener's senior unsecured obligations, and will rank at least pari passu in priority of payment with all other AES Gener senior unsecured debt. KEY RATING DRIVERS AES Gener's ratings are supported by the company's solid liquidity given significant capex needs in the short to medium term. The ratings also reflect the company's balanced contractual position and a diverse portfolio of generation assets. The ratings also recognize that the company's major plants operate under constructive regulatory environments in Chile and Colombia. Credit risks include possible environmental and/or political issues, which could result in cost overruns or additional modifications in new and/or existing projects. The credit risks also include the regulatory uncertainties in Argentina related to Termoandes S.A., though these are mitigated given Argentina represented 5% of consolidated EBITDA during 2014. In addition, the company could face pressure from its controlling shareholder, AES Corp. ('BB-'/Outlook Negative), to increase dividends above those forecast by Fitch. Strong End to 2014: In 2014, AES Gener reported consolidated adjusted EBITDA of USD667 million, which was 7% higher than 2013 results. After a weak first half of the year which saw lower availability of AES Gener's efficient coal plants due to a scheduled maintenance at the Ventanas coal complex, results picked up in the second half of the year as all the plants in the Ventana Complex were back in service. Furthermore, results were helped by a re-set of contracted prices in Chile at the end of the second quarter of 2014. Overall, 2014 EBITDA generation came in slightly above Fitch's forecasts and is poised to grow again in 2015. In Midst of Expansion: The company has embarked on an aggressive expansion phase which brings with it significant execution risk (i.e., construction delays, accidents, cost-overruns, etc.). In addition, the expansion plan has resulted in additional pressure on the company's cash flow generation and credit metrics. Positively, the company has extensive history of finishing major projects on time and on budget. AES Gener's first phase of expansion took place between 2007-2013 in which the company successfully expanded its generation capacity by 48% to reach 5,081 MW of installed capacity at a total investment cost of USD3 billion. The company is in the midst of what it has termed a second phase of expansion, which involves five major projects under construction that will increase installed capacity by 25%, with the total investment cost for the this expansion phase expected to cost USD4 billion. The Guacolda V Project will cost USD450 million (152 MW coal-fired with estimated operation date in 2H15) while Tunjita in Colombia (20 MW run of the river) will cost USD68 million (estimated operation date 1H16). AES Gener's non- conventional renewable energy project, the Solar Andes Project (21 MW) whose investment will total USD45 million, is expected to be operational in 2H15. The largest projects to be executed are Cochrane (USD1.35 billion) and Alto Maipo (USD2.05 billion). AES Gener initiated construction in March of 2013 of its 532 MW Cochrane coal project in the SING (Sistema Interconectado del Norte Grande), with an estimated investment of approximately USD1.35 billion. In the Cochrane project, AES Gener has incorporated Mitsubishi Corporation as a shareholder with a 60%:40% equity stake, respectively. For Alto Maipo, a 531 MW run-of-the-river project, AES Gener incorporated Antofagasta Minerals S.A., a Chilean mining company, as a 40% shareholder. Non-recourse financing has been closed for both projects and the company used funds from junior subordinated notes (USD300 million) issued in 2013 and a USD150 million capital increase to fund the equity investments in both projects. Negative FCF: Primarily due to cash outflows to fund the Cochrane and Alto Maipo projects, Fitch expects the company to generate negative free cash flow (FCF) in the 2015-2018 period, with peak capex forecast for 2014-2016 and a return to positive FCF generation in 2019. Fitch estimates that Cochrane will become a positive cash flow contributor in 2017 while Alto Maipo should do so in 2019. The company's financial strategy revolves around maintaining a balance between continuity of funding and financial flexibility through internally generated cash flows, bank loans, bonds, short-term investments, committed credit lines and uncommitted credit lines. Pressured Credit Metrics: Given AES Gener is in the midst of an aggressive expansion plan, Fitch expects a weakening of the company's credit quality measures in the short to medium term. For the latest 12 months (LTM) ended March 31, 2015, the company's consolidated debt-to-EBITDA and EBITDA coverage metrics were 4.4x and 4.8x , respectively. These ratios are weaker versus leverage levels of 4.3x and 3.6x in 2013 and 2012 respectively, though coverage ratios of 4.8x improved versus 4.0x and 4.5x also in 2013 and 2012. Excluding the non-recourse debt of the Alto Maipo and Cochrane power plants, AES Gener's debt-to-EBITDA for the LTM March 2015 period was 3.4x. Fitch expects the company's consolidated leverage levels to remain in the 4.5x-5x range during 2015, which is on the weak side for the rating category. Leverage levels should slowly decline to the 4x level starting in 2016 as Cochrane comes on-line and begins generating meaningful cash flows in 2016- 2017. High Dividend Payment: AES Gener has a track record of high dividend payments, and Fitch expects for the company to continue to payout 100% of net income going forward. Cash flow could be further pressured in the upcoming expansion phase should this dividend policy be increased to a payout rate above 100% of net income during peak capex periods. RATING SENSITIVITIES A change in AES Gener's commercial policy that results in an imbalanced long-term contractual position would be viewed negatively by Fitch. In addition, a material and sustained deterioration of credit metrics reflected in total consolidated debt-to-EBITDA ratios above 4.5x-5x and total non-recourse debt- to-EBITDA ratios above 3x-3.5x on a sustained basis could result in a negative rating action. Fitch believes that a positive rating action is limited at this time due to the expected capacity expansion over the next few years. LIQUIDITY AND DEBT STRUCTURE Sufficient Liquidity: Fitch believes AES Gener has adequate liquidity to support its financial needs during the peak capex period in 2014-2015, with the recent refinancing of its Angamos project finance debt a positive improvement to its short-term cash needs. The company's liquidity is supported by reported cash on hand of USD285 million as of March 31, 2015, which compares favorably with short-term maturities totalling USD199 million for all the 2015-2017 period. The company's liquidity is further buoyed by access to undrawn committed credit lines totalling USD236 million. Positively, the company's debt outstanding does not have major maturities coming due during the 2015-2019 period, which cushions the company for the aggressive build-out taking place. KEY ASSUMPTIONS -- Peak capex for latest expansion program in 2014-2016; -- Cochrane becomes a positive contributor in 2016, with Alto Maipo following suit in 2019; -- 100% of net income dividend payout rate; -- Peak leverage in the 4.5x-5.0x level during 2014-2015, with leverage declining to the 4x level starting in 2016. Fitch currently rates AES Gener S.A. as: -- Foreign and local currency Issuer Default Ratings (IDRs) 'BBB-'; -- International senior unsecured bond ratings 'BBB-'; -- International junior subordinated bond ratings 'BB'; -- Long-term national scale rating 'A+(cl)' ; -- National senior unsecured bond ratings 'A+(cl)'; -- National Equity Rating 'Primera Clase Nivel 2(cl)'. The Rating Outlook is Stable. =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Food Imports Jump 17% in March to US$220.5MM ---------------------------------------------------------------- Dominican Today reports that the Dominican Republic imported US$220.5 million FOB in foods in March, a 17% jump compared with February, with 230,400 tons mostly from 82 countries. Industry and Commerce Deputy Minister Anina M. Del Castillo said 50.04% (RD$110.4 million) of all imports were corn, wheat, soybean oil, biscuits and other solid soybean derivatives, such as animal feed, and beef and pork from the US, according to Dominican Today. Ms. Del Castillo said at US$8.8 million (3.99%), Colombia is the second market, with crude palm oil, non-alcoholic beverages, sweets, biscuits and canned fish, the report relates. The report notes that Mexico is third with US$8.4 million or 3.84%, on imports of milk formula, biscuits, sweets and cereals; Netherlands ranks fourth with US$6.73 million (3.05%) on milk formula, cheese, powdered milk, processed foods and processed potatoes; Norway stood at US$6.16 million (2.79%) with salted codfish and salmon, Del Castillo said in the Internal Commerce monthly report. * DOMINICAN REPUBLIC: Border Investment Initiative Gathers Steam ---------------------------------------------------------------- Dominican Today reports that the Quisqueya Binational Economc Council (CEBQ) presented the project it develops to representatives of Santiago's free zones, where its directors explained the Dominican-Haitian investment initiative whose launch is imminent. Dominican Republic representatives Juan B. Vicini and Fernando Chaplain and organization secretary Rafael Paz presented the projects in progress expect to have an economic impact on the border region and invited the entrepreneurs to get involved, according to Dominican Today. The report notes that Mr. Vicini said the development initiative is focused on four key points of interconnection between Dominican Republic and Haiti, aimed at transforming them into a hub for economic growth and creating jobs on both sides of the border. "Through sustainable and inclusive investments in a superstructure with logistics and production components, the new urban communities will solve the high concentrations of the major urban centers of each country, achieving social, economic and environmental balance, thus formalizing the flow of trade and spurring job creation," the business leader said, the report relates. The report notes that for Mr. Paz, "the four areas of development are Manufacturing and Logistics, to generate and store hydro and wind power, Agriculture and Livestock, and finally Tourism. For all these, studies have been conducted of the potential and feasibility to ensure tangible results in three to five years." The report discloses that Mr. Vicini said the project has a high financing, sophisticated structure, financially as well as legally to ensure their materialization. "Everything is aimed at building a benchmark development model and replicable elsewhere. An experience which accrues and can be decisive because it deals with realities that could change or improve perceptions of the countries involved: Dominican Republic and Haiti," Mr. Vicini added. ============= J A M A I C A ============= JAMAICA: Trade Deficit With USA Worsens --------------------------------------- RJR News reports that despite an overall decline in Jamaica's trade deficit for the January to March period, the country's trade balance with the United States continues to worsen. Data released by the Statistical Institute of Jamaica (Statin) show Jamaica's trade deficit with the US widened by 2% to US$348 million, according to RJR News. That came in the context of a 12% decline in the overall trade deficit, the report relates. * * * As reported in the Troubled Company Reporter-Latin America on June 5, 2015, Standard & Poor's Ratings Services raised its long- term foreign and local currency sovereign credit ratings on Jamaica to 'B' from 'B-'. In addition, S&P affirmed the 'B' short-term ratings on Jamaica. The outlook on the long-term ratings is stable. S&P also raised the transfer and convertibility assessment to 'B+' from 'B'. =========== P A N A M A =========== PANAMA: May Accept Oil or Gas From Venezuela to Resolve Debt ------------------------------------------------------------ EFE News reports that Panama could accept oil or natural gas from Venezuela as payment for the more than $1 billion in dollar debt owed to Panamanian companies, Vice President and Foreign Minister Isabel De Saint Malo de Alvarado said. In a meeting with members of the Association of Foreign Press Correspondents in Panama, Ms. De Saint Malo said that what Venezuela owes should not even be termed "debt, but rather a lack of availability of foreign exchange" to honor its commitments to Panamanian companies for more than two years, according to EFE News. "All options are on the table," the vice president said, adding that Venezuela has repeatedly showed "signs of a firm commitment to resolving the situation," the report relates. Ms. De Saint Malo did not indicate the amount owed by Venezuelan importers and said the business leaders of the Colon Free Trade Zone and Venezuelan officials "are weeding through the information that's available to establish the amounts and the companies." "The deeper issue we've been working on is how to make that hard currency available," she said, the report discloses. The debt owed by Venezuelan importers to Panamanian companies, including Copa Airlines, pharmaceutical firms and companies of the Colon Free Trade Zone exceeds $1 billion, the Panamanian Trade and Industry Ministry said in October, the report notes. Under strict currency controls in place in Venezuela for more than a decade, the leftist government is to distribute dollars to importers at one of three official exchange rates and also allow foreign airlines that sell tickets to Venezuelans in pesos to convert them into dollars, the report relates. The report says that Petroleum-rich Venezuela, which relies on crude sales for the vast majority of its hard-currency reserves, has been hard hit financially by the recent sharp drop in global oil prices. Panama is prepared to "seek different, more creative options that could make it easier for the Venezuelan government to make that hard currency available," Ms. De Saint Malo told the foreign correspondents, the report adds. ====================== P U E R T O R I C O ====================== PUERTO RICO AQUEDUCT: S&P Cuts Bond Rating to 'CCC-'; Outlook Neg. ------------------------------------------------------------------ Standard & Poor's Ratings Services said it lowered its rating two notches to 'CCC-' from 'CCC+', on Puerto Rico Aqueduct & Sewer Authority's (PRASA) senior-lien revenue bonds and removed it from CreditWatch with negative implications. The outlook is negative. PRASA has approximately $3.5 billion in senior-lien revenue bonds. The bonds are secured, as per the terms of the 2008 master agreement of trust and as amended in 2012, by a first lien on the gross revenues of PRASA's retail waterworks and sanitary sewer system. "The rating action is based on our downgrade to 'CCC-' of the Commonwealth of Puerto Rico's general obligation debt on June 30," said Standard & Poor's credit analyst Theodore Chapman. That action was based on S&P's view that a default, distressed exchange, or redemption of the commonwealth's debt appears inevitable within the next six months absent unanticipated significantly favorable changes in the issuer's circumstances. The negative outlook reflects S&P's view that there is at least a one-in-three chance it could again lower the rating on PRASA's debt if Puerto Rico announces that it intends to undertake an exchange offer or similar restructuring -- one which does not explicitly exclude PRASA -- that S&P classifies as distressed, or that it has an intention to miss a debt service payment. If S&P concludes the commonwealth has inadequate resources to meet an impending debt obligation, or PRASA's liquidity becomes threatened by way of interagency loans or changes in the law that supersede the master agreement of trust and erode protections from clawback or intercept, S&P could lower its rating within the year. Should Puerto Rico restore adequate liquidity without a debt exchange, which S&P views as unlikely, or explicitly and irrevocably exclude PRASA from a potential restructuring or distressed debt exchange, S&P could revise the outlook to stable or even raise the rating. PUERTO RICO ELECTRIC: S&P Lowers Underlying Rating to 'CC' ---------------------------------------------------------- Standard & Poor's Ratings Services has lowered its long-term and underlying ratings (SPURs) on Puerto Rico Electric Power Authority, (PREPA) P.R.'s electric revenue bonds to 'CC' from 'CCC-'. The rating remains on CreditWatch with negative implications. PREPA has announced that it has made a $415 million payment to bondholders, due July 1, 2015. While S&P believes that this full and timely payment has enabled PREPA to forestall an imminent default, it notes that the authority also announced that it had reached agreement with creditors to execute a "Restructuring Support Agreement (RSA)" by Sept. 1, 2015. Per S&P's criteria, it assigns a 'CC' rating if "an entity that has announced its intention to undertake an exchange offer or similar restructuring that S&P classifies as distressed, but has not yet completed the transaction". It is S&P's understanding that PREPA was able to make its $415 million payment by utilizing $153 million of cash in its general funds which supplemented remaining debt service reserve monies that are on deposit with its trustee, U.S. National Bank, N.A. Further, S&P understands that as part of the agreement, insurers of some of PREPA's outstanding debt have agreed to purchase $128 million of new short-term bridge loan bonds, with repayment due Dec. 15, 2015. S&P believes that PREPA will use the proceeds of the loan to provide working capital. PREPA also announced that its creditors had agreed to extend the forbearance agreements that have been in place since 2014, through Sept. 15, 2015. CREDITWATCH S&P expects to resolve the CreditWatch placement in the next three months after it has evaluated the RSA, due Sept. 1. Should the RSA result in a distressed exchange where, in S&P's view, bondholders receive less value than the promise of the original securities (e.g., other than full and timely payment under the original securities), the bonds will, in S&P's judgment be in default. S&P continues to believe that there is at least a 50 percent likelihood of this occurring. PUERTO RICO: Issues Tax Anticipation Notes ------------------------------------------ Latin America Herald Tribune reports that Puerto Rico Gov. Alejandro Garcia Padilla signed into law on July 3 a bill authorizing select public agencies to purchase up to $400 million in tax and revenue anticipation notes, known as TRANs. The measure is necessary given "the absence of the usual sources of liquidity," the government said in a statement, alluding to Puerto Rico's inability to borrow as it seeks to reschedule its $72 billion public debt, according to Latin America Herald Tribune. At the same time, the statement emphasized that the administration issues TRANs at the start of every fiscal year -- July 1 in Puerto Rico -- to ensure cash flow to the treasury, as the bulk of the government's revenue does not come in until people file their taxes in April, the report notes. The law enacted also suspends automatic monthly deposits to a fund earmarked for debt service, the report relates. "The suspension of these deposits does not imply default against the bondholders on the corresponding payment dates," the government said, notes the report. Garcia Padilla said that Puerto Rico's debt is "unpayable" under the current terms and announced plans to ask bondholders to agree to a payment moratorium, the report discloses. The Puerto Rican government needs time to build up a fiscal cushion as the island's economy struggles to emerge from nearly a decade of recession, the governor said, adds the report. ================= V E N E Z U E L A ================= VENEZUELA: Fitch Affirms 'CCC' Issuer Default Rating ---------------------------------------------------- Fitch Ratings has affirmed Venezuela's Long-term foreign and local currency IDRs at 'CCC'. Fitch has also affirmed the sovereign's Short-term foreign currency IDR at 'C' and the country ceiling at 'CCC'. KEY RATING DRIVERS Venezuela's ratings reflect the sovereign's weakened external buffers, high commodity dependence, rising macroeconomic distortions, reduced transparency in official data, and continued policy and political uncertainty. The sovereign's strong repayment record and a relatively low debt amortization profile mitigate imminent risks to debt service. In spite of monetization of FX assets, international reserves have declined by USD5.7 billion since the beginning of the year to USD16.4 billion, their lowest level since 2003. The external liquidity ratio, at 67%, remains substantially below peers. Moreover, operational liquidity of international reserves is constrained, as 72% are held in gold and most of these are held at Venezuela's central bank. Oil accounts for about 95% of total exports and represents the main source of FX for the economy. Oil export revenues could fall to USD46 billion in 2015 (each USD1/b decline shaves USD785 million) from estimated USD73 billion in 2014. Import contraction continues for a third year in a row in 2015 as the main adjustment tool. When adjusted for oil exports related to diplomacy (Petrocaribe) and China debt repayments, Fitch expects external financing needs (current account balance plus external amortizations) to equal USD14.9 billion in 2015. Venezuela's sources of FX financing are limited, the sovereign last issued a global bond in 2011, and significant multilateral funding is not expected in 2015 - 2016. Bilateral loans from the roll-over of existing oil financing facilities with China, improved oil prices in H215 and sovereign FX liquidity in off- budget funds could slow the decline in international reserves. Nevertheless, Venezuela is likely to remain highly vulnerable to oil price volatility and greater-than-anticipated public sector FX demand. Macroeconomic instability has been exacerbated by the oil price shock and a policy response characterized by the postponement of exchange rate adjustments, increased controls and rationing of FX for the economy. Inflation, averaging 57.3% in 2014, reportedly continues to increase and approach three-digits. The spread between the official and parallel exchange rates continues to widen at a rapid pace, further fuelling inflation and currency pressures. The economy could contract by 6.1% in 2015 (following a 3.9% contraction in 2014) weighed down by the rationing of FX for inputs and capital goods, which amplify the terms of trade shock. In spite of the expected slow oil price recovery, the government is likely to continue limiting FX allocations to the private sector, hampering the possibility of growth recovering in 2016-17. The transparency and timely reporting of official data has deteriorated. In addition to limited public information on the management and execution of government parallel funds, as well as bilateral financing agreements, the publication of inflation, GDP and balance of payments data has suffered significant delays since the third quarter of 2013 with no figures available for end 2014 and 2015 YTD. Authorities' payment record and public pronouncements signal continued strong willingness to service debt. In March 2015, Venezuela paid a USD1.3 billion Euro bond amortization. Sovereign FX debt amortizations are manageable with USD1.5 billion in 2016 and no external market payments in 2017. Moreover, the sovereign has additional sources of FX liquidity in parallel funds. Nevertheless, possible ICSID arbitration awards could increase FX financing needs for the sovereign. PDVSA faces a more demanding debt repayment schedule. Total public debt amortizations average USD7.5 billion in 2015 - 2017 or 45% of current international reserves. Legislative elections are scheduled to take place in early December 2015. As opposition parties could increase its legislative representation, political polarisation, marked divisions within the government in terms of economic policy and the ongoing economic crisis create risks for already delayed policy adjustments post-election and social stability. RATING SENSITIVITIES The Stable Outlook reflects Fitch's view that upside and downside risks to the rating are broadly balanced. The main risk factors that, individually or collectively, could trigger a rating action are: Negative: -- Signs of weakening willingness to service debt; -- Concern about Venezuela's ability to service debt due to increased external and fiscal financing constraints, potentially stemming from economic or political shocks. Positive: -- Policy adjustments that lead to reduced external and macroeconomic vulnerabilities; -- A recovery in oil prices that eases financing constraints for the economy; -- Strengthening of Venezuela's external and fiscal buffers and increased data transparency. KEY ASSUMPTIONS -- Fitch expects Brent oil prices to average USD65 in 2015, USD75 in 2016 and USD80 in 2017. -- Fitch assumes that China will continue to provide financing to Venezuela through the renewal of maturing oil facilities. ================= X X X X X X X X X ================= * BOND PRICING: For the Week From June 29 to July 3, 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 Venezuela 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 Venezuela 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 Venezuela 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 Honghua Group Ltd 7.45 53.75 9/25/2019 CN USD Venezuela Int'l Bond 7.75 36.75 10/13/2019 VE USD Venezuela Int'l Bond 9.37 37.9 1/13/2034 VE USD Venezuela Int'l Bond 6 34.75 12/9/2020 VE USD Automotores Gildemeister SA 8.25 40.25 5/24/2021 CL USD Tonon 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 Venezuela Int'l Bond 9 37.1 5/7/2023 VE USD Venezuela Int'l Bond 7 40.95 12/1/2018 VE USD Mongolian Mining Corp 8.87 70 3/29/2017 MN USD USJ Acucar e Alcool SA 9.875 45 11/9/2019 BR USD Venezuela Int'l Bond 9.25 37.4 5/7/2028 VE USD Automotores Gildemeister SA 6.75 34 1/15/2023 CL USD Offshore Group Investment Ltd 7.12 53.95 4/1/2023 KY USD CA La Electricidad de Caracas 8.5 37 4/10/2018 VE USD Kaisa Group Holdings Ltd 8 66.2 12/20/2015 CN CNY Venezuela Int'l Bond 13.62 68 8/15/2018 VE USD Inversiones 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 Glorious Property 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 Odebrecht 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 Newland International 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 Electrica de Buenos Aires SA IEBA 6.5 44.5 9/26/2017 AR USD Tonon 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 General Exploration Partners Inc 11.5 73.5 11/13/2018 CA USD PDVSA 6 32 5/16/2024 VE USD ESFG 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 Automotores Gildemeister SA 6.75 34.5 1/15/2023 CL USD Mongolian Mining Corp 8.87 70.25 3/29/2017 MN USD Automotores Gildemeister SA 8.25 36.31 5/24/2021 CL USD PDVSA 9 37.12 11/17/2021 VE USD Venezuela Government Int'l Bond 13.62 61.88 8/15/2018 VE USD Anton Oilfield Services 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 Greenfields 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 Newland International Properties Corp 9.5 37.75 7/3/2017 PA USD Venezuela Government TICC Bond 5.25 55.36 3/21/2019 VE USD SMU SA 7.75 72.44 2/8/2020 CL USD Provincia de Tucuman Argentina 0.40 42.7 9/5/2015 AR USD Ruta del Bosque Sociedad Concesionaria SA 6.3 65.67 3/15/2021 CL CLP Cia Cervecerias Unidas SA 4 53.32 12/1/2024 CL CLP Cia Sud Americana de Vapores SA 6.4 54.31 10/1/2022 CL CLP Provincia del Chaco 4 68.01 12/4/2026 AR USD Talca Chillan Sociedad Concesionaria SA 2.75 48.77 12/15/2019 CL CLP Venezuela Government Int'l Bond 7.65 34.5 4/21/2025 VE USD Venezuela Government Int'l Bond 7 35 3/31/2038 VE USD Decimo Primer Fideicomiso de Bonos de Pres 4.54 66.5 10/25/2041 PA USD Venezuela Government Int'l Bond 13.62 66.12 8/15/2018 VE USD Venezuela Government Int'l Bond 8.25 35.4 10/13/2024 VE USD Venezuela Government 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 conferences@bankrupt.com *********** S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Latin America is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 2015. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. * * * End of Transmission * * *