/raid1/www/Hosts/bankrupt/TCRLA_Public/160405.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
Tuesday, April 5, 2016, Vol. 17, No. 66
Headlines
A R G E N T I N A
ARGENTINA: ABS Delinquencies Increased in 3 Months, Moody's Says
NEUQUEN: S&P Raises Rating on $260MM Secured Notes to 'B-'
B A R B A D O S
BARBADOS: Moody's Cuts Gov't. Bond Rating to Caa1; Outlook Stable
B E R M U D A
AOZORA RE 2016-1: S&P Puts BB-(sf) Rating to $220MM Cl. A Notes
B R A Z I L
ALLIANZ GLOBAL: S&P Affirms 'BB' Rating; Outlook Negative
BRAZIL: Industry Output Has Biggest Drop in Over Three Years
CCB BRASIL: S&P Lowers ICRs to 'B+/B' & Puts on Watch Developing
PETROLEO BRASILEIRO: Reduces Managerial Staff by 43%
C A Y M A N I S L A N D S
ACHIEVEMENT CONCENTRATED: Commences Liquidation Proceedings
AD MOVIE: Creditors' Proofs of Debt Due April 4
BENEFIT STREET: Creditors' Proofs of Debt Due April 12
CITRINE CAYMAN: Creditors' Proofs of Debt Due April 12
CQS EELS: Creditors' Proofs of Debt Due April 12
EMERGING MARKETS: Creditors' Proofs of Debt Due April 12
FRM COMMODITY: Creditors' Proofs of Debt Due April 12
FRM MANAGED: Creditors' Proofs of Debt Due April 12
GLOBAL AG: Creditors' Proofs of Debt Due April 12
HARBORNE INVESTMENTS: Placed Under Voluntary Wind-Up
INTRA-COMMERCE: Creditors' Proofs of Debt Due April 4
JKT HOLDINGS: Creditors' Proofs of Debt Due April 15
JSA INTERNATIONAL 36879: Commences Liquidation Proceedings
JSA INTERNATIONAL 4683: Commences Liquidation Proceedings
LILY & BEAUTY: Commences Liquidation Proceedings
MADISON NICHE: Court Grants Petition to Recognize Cayman Cases
C H I L E
AUTOMOTORES GILDEMEISTER: Moody's Raises CFR to Caa2
GUANAY FINANCE 2013-1: S&P Lowers Rating on $450MM Notes to 'BB'
C O S T A R I C A
BANCO POPULAR: Fitch Affirms 'BB+' IDR; Outlook Negative
E L S A L V A D O R
SISA VIDA: Fitch Keeps 'BB' Int'l. Scale IFS Rating on Watch Neg.
M E X I C O
EMPRESAS ICA: S&P Affirms 'D' CCR & Sr. Unsecured Debt Ratings
MEXICO: Cuts 2017 Budget as Stagnant Oil, Exports Weigh on Rating
VINTE VIVIENDAS: Moody's Withdraws B1 Corporate Family Rating
N I C A R A G U A
* NICARAGUA: IMF to Close Resident Representative's Office
P U E R T O R I C O
FRONTIER STAR: Gets Court Approval for Western Alliance Deal
FRONTIER STAR: Chapter 11 Trustee Announces Closing of Asset Sale
INSTITUTO MEDICO: Taps FPV & Galindez for Audit Services
INSTITUTO MEDICO: Plan Confirmation Hearing on April 26
SISTEMA UNIVERSITARIO: S&P Lowers Rating to 'BB+'; Outlook Stable
T R I N I D A D & T O B A G O
ARCELORMITTAL: Stress for Retrenched Steel Workers
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: ABS Delinquencies Increased in 3 Months, Moody's Says
----------------------------------------------------------------
The 90+ day delinquency rate increased by 46 bps to 5.27% in
January 2016 from 4.81% in October 2015, according to the latest
indices published by Moody's Investors Service. The 30+
delinquency rate also increased by 123 bps to 6.60% in January
2016 from 5.37% in October 2015.
Securitized portfolios have performed within Moody's original
expectations. Moreover, the credit quality of most Argentine
securitizations remains strong due to their robust structural
features, including high initial subordination levels, high excess
spread levels and turbo sequential payment structures that capture
any available excess spread to repay the rated debt.
The prepayment rate for the Argentine index decreased to 18.57% in
January 2016 from 31.42% in October 2015. The decline was mainly
driven by the termination of Supervielle Deals during that period.
Moody's 2016 Outlook for Latin American Securitizations states the
performance of securitizations will depend on the pace of
necessary economic reforms. Unsecured consumer loans are the most
vulnerable asset class, in particular those lacking an automatic
payroll deduction mechanism, though auto ABS deals will continue
to perform well.
NEUQUEN: S&P Raises Rating on $260MM Secured Notes to 'B-'
----------------------------------------------------------
Standard & Poor's Rating Services raised its global scale issue-
level rating on the province of Neuquen's secured amortizing notes
for $260 million, backed by oil royalties, due 2021 (TICAP) to
'B-' from 'CCC+' and removed it from CreditWatch positive. S&P
also revised its CreditWatch implications on the 'CCC+' rating on
the province of Salta's secured amortizing notes for $185 million,
backed by oil and gas royalties, due 2022 to developing from
positive.
RATIONALE
The rating actions follow the revision of the performance risk
assessment of the hydrocarbon industry in the provinces of Neuquen
and Salta, which follows the recent upgrade of Argentina's local
currency rating and the ratings on several local and regional
governments in the country. The hydrocarbon industry risk
assessment for these provinces reflects S&P's view that the
dedicated areas that produce hydrocarbon royalties that back these
transactions will continue to operate even under a financial
distress scenario.
The province of Neuquen's TICAP bonds are secured by certain oil
royalties paid to the province by several oil producers. These
royalties represent 12% of the oil production value at the
wellhead of the dedicated concessionaries. The secured amortizing
notes are Neuquen's direct, general, unconditional and
unsubordinated obligations. On the other hand, the province of
Salta's secured amortizing notes are backed by Salta's right to
receive 80% of the hydrocarbon royalties due to it, under
dedicated concessions. The secured amortizing notes are also
Salta's direct, general, unconditional, and unsubordinated
obligations and are secured by oil and gas royalties.
Salta's royalty coverage ratio (principally royalties that secure
the notes divided by debt service) weakened in March 2016, falling
below 1x, due to a combination of factors. These factors include
the unequal impact of the depreciation of the Argentine peso on
the royalty collections, which lags behind the immediate impact of
depreciation on the transaction's debt service payments. They
also include delays in royalty payments from oil companies and
differences in royalty calculations. Should this low ratio remain
below 1.05x for more than 180 consecutive days, or during two
additional payment periods, the issue would enter into an event of
default as per the transactions' covenants.
The ratings on both Neuquen's TICAP and Salta's secured amortizing
notes for $185 million are also based on these characteristics of
the transactions:
-- Credit enhancement protection that includes
overcollateralization and a debt service reserve account
equivalent to the next scheduled debt service payment, in
addition to extraordinary and trigger event prepayment
accounts to cover any liquidity shortfall in case of a
prepayment event;
-- The underlying assets' source of repayment is derived from a
pool of public and private oil producers and
concessionaries, which pay royalties to the provinces of
Salta and Neuquen. These royalties are paid directly to an
Argentine onshore trust for the benefit of the noteholders.
Consequently, the source of repayment for these transactions
depends principally on the evolution and performance of the
royalties or oil production and not on the provinces'
willingness or capability to pay debt;
-- The weak credit quality of the provinces of Neuquen and
Salta due to a challenging economic context with low growth,
high inflation, and exchange rate pressures;
-- The vulnerability of the hydrocarbon industry in Neuquen and
Salta due to its exposure to the Argentine political and
regulatory risk and its dependence on mature fields that are
going through a natural decline in production. This has
become evident in the low replacement ratios over the last
several years that resulted from a sharp decrease in capital
expenditures, particularly in exploration. These factors
are partially mitigated by the industry's long production
track record and, in the case of Neuquen, the low geological
complexity for conventional resources (that results in low
capital costs).
CREDITWATCH
The CreditWatch developing listing on the province of Salta's
issue-level rating reflects S&P's view that, although the
hydrocarbon industry's performance risk assessment has been
raised, negative external factors -- such as potential further
depreciation of the exchange rate, together with the lack of
resolution of payment delays and calculation differences--could
lead to sustained weakness of the royalty coverage ratio. S&P
aims to resolve the CreditWatch listing within 90 days, once it
has more information regarding the evolution of the royalty
coverage ratio during the next payment period. During that time,
S&P could maintain the ratings on CreditWatch, or it could affirm
or raise the ratings and remove them from Credit Watch. S&P would
raise the ratings if the royalty coverage ratio were to improve,
should the developments that led to the ratio's weakening prove to
be temporary. On the other hand, S&P could lower the ratings if
the low royalty coverage ratio remains below 1.05x.
RATINGS LIST
CreditWatch/Outlook Action
To From
Salta (Province of)
$185M Senior Secured
Nts Due 2022 CCC+/Watch Dev CCC+/Watch Pos
Upgraded; CreditWatch/Outlook Action
Neuquen (Province of)
$260M Senior Secured
Nts Due 2021 B- CCC+/Watch Pos
===============
B A R B A D O S
===============
BARBADOS: Moody's Cuts Gov't. Bond Rating to Caa1; Outlook Stable
-----------------------------------------------------------------
Moody's Investors Service downgraded Barbados' government bond
rating and issuer rating to Caa1 and changed the outlook to
stable.
Moody's decision to downgrade Barbados' issuer and bond ratings to
Caa1 and revise the outlook to stable from negative was driven by
these factors:
1. Slow progress towards achieving fiscal consolidation
consistent with a sustainable debt trajectory
2. Low level of foreign exchange reserves and weak funding
conditions
Despite some progress to reduce the government fiscal deficit and
contain pressures on foreign exchange reserves, macroeconomic and
credit risks remain elevated in Barbados. Debt burden remains
very high and additional fiscal consolidation is needed to reverse
the rising trend in debt burden. Slow progress to narrow the
fiscal deficit to sustainable levels continue to put pressure on
foreign exchange reserves, placing the exchange rate peg at risk.
Affirmations:
Issuer: Barbados
Country Ceiling Bank Deposit Rating, Affirmed at NP
Country Ceiling Rating, Affirmed at NP
Downgrades:
Issuer: Barbados
Country Ceiling Bank Deposit Rating, Downgraded to Caa2 from
Caa1
Country Ceiling Rating, Downgraded to B3 from Ba3
Issuer: Barbados, Government of
Issuer Rating, Downgraded to Caa1 from B3
Senior Unsecured Medium-Term Note Program, Downgraded to (P)Caa1
from (P)B3
Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1 from
B3
Outlook Action:
Issuer: Barbados, Government of
Outlook, Changed to Stable from Negative
RATINGS RATIONALE
First Driver: Slow progress towards achieving fiscal consolidation
consistent with a sustainable debt trajectory.
Although economic conditions in Barbados appear to be stabilizing
with the improved growth outlook and low oil prices, the recent
and anticipated fiscal consolidation is unlikely to be sufficient
to put the debt trajectory on a downward path. Moody's projects
debt-to-GDP ratio to continue to rise over the next 2-3 years and
will likely reach 110% of GDP by 2018 (excluding debt held by the
National Insurance Scheme). Continued accumulation of government
debt will slowdown relative to the past three years due to the
expected pick-up in economic growth and the reduction in fiscal
deficit; however these improvements will not be sufficient to put
debt-to-GDP ratio on a sustainable path. After a five-year period
of anemic GDP growth of 0.3% on average, Moody's expects growth to
reach 1.5% in 2016, driven by a recovery in the tourism and
construction sectors. Moody's expects the fiscal gap to narrow to
around 5.5% of GDP in the year ending in March 2016, from a peak
of 11.2% in 2013. Despite these positive developments,
significant fiscal challenges remain over the rating horizon.
Particularly, high debt overhang and large funding requirements
are important rating constraints, in addition to the high interest
burden, which consumes around 27% of government revenues.
Continued fiscal consolidation to achieve a primary surplus of
around 2% of GDP and a sustained recovery in economic growth would
be necessary to stabilize the debt at the current level. Reducing
the large debt overhang will require additional fiscal savings.
Second Driver: Low level of foreign exchange reserves and weak
funding conditions
Foreign exchange reserves remain under pressure, after dropping by
19% since 2013. The slow pace of fiscal consolidation continues
to pressure Barbados' reserve buffer, putting the exchange rate
peg at risk. The government has increased its reliance on
financing from the Central Bank of Barbados, while commercial
banks reduced their exposure to the sovereign. The rapid increase
in short-term debt since 2013 raises concerns about rollover risk,
while short-term funding pressures remain in the face of the
government's large financing gap.
Barbados' credit rating reflects moderately strong institutions,
high governance indicators relative to peers, and a stable
political system that has historically supported a high degree of
policy consensus. The government debt structure has relatively
limited exposure to exchange rate risk with less than 30% of
government debt denominated in foreign currency; however the debt
profile is vulnerable to rollover risk on short-term debt.
Financing through the domestic debt market mitigates some of the
refinancing risks. The sovereign rating is constrained due to
relatively weak growth compared to peers, and significant fiscal
challenges.
STABLE OUTLOOK
The outlook is stable, reflecting the risk of further
deterioration in debt dynamics on the one hand, balanced by the
prospect that the authorities will continue to reduce the fiscal
deficit in the context of an improved external environment and
more supportive economic growth.
WHAT COULD MOVE THE RATINGS UP
Upward pressure on the rating could build if the government
accelerates its fiscal consolidation efforts, and puts the
government debt-to-GDP ratio on a sustainable downward trajectory,
and the economy maintains higher growth rates. These developments
would likely be accompanied by reduced reliance on short-term debt
and financing from the central bank, and a rebound in
international reserves.
WHAT COULD MOVE THE RATINGS DOWN
The rating may come under additional downward pressure if the
government's ability to service its debt worsens, or it faces
challenges in rolling over maturing short-term debt. Renewed
pressure on foreign exchange reserves and sustainability of the
peg may also trigger a downgrade.
COUNTRY CEILINGS
The long-term foreign currency bond ceiling is changed to B3,
while the short-term foreign currency bond ceiling is unchanged at
NP. The long-term foreign currency deposit ceiling is changed to
Caa2, while the short-term foreign currency deposit ceiling
remains at NP. The long-term local currency bond and deposit
ceilings are changed to B1, while the short-term local currency
bond and deposit ceilings remain unchanged at NP.
GDP per capita (PPP basis, US$): 16,365 (2014 Actual) (also
known as Per Capita Income)
Real GDP growth (% change): 0.5% (2015 Actual) (also known as
GDP Growth)
Inflation Rate (CPI, % change Dec/Dec): 0.6% (2015 Actual)
Gen. Gov. Financial Balance/GDP: -5.5% (2015 Estimate) (also
known as Fiscal Balance)
Current Account Balance/GDP: -5.2% (2015 Estimate) (also known
as External Balance)
External debt/GDP: 34.8% (2015 Estimate)
Level of economic development: Moderate level of economic
resilience
Default history: No default events (on bonds or loans) have been
recorded since 1983.
On March 30, 2016, a rating committee was called to discuss the
rating of the Barbados, Government of. The main points raised
during the discussion were: The issuer's fiscal or financial
strength, including its debt profile, has materially decreased.
The issuer has become increasingly susceptible to event risks.
=============
B E R M U D A
=============
AOZORA RE 2016-1: S&P Puts BB-(sf) Rating to $220MM Cl. A Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it assigned its
'BB-(sf)' rating to the $220 million Series 2016-1 Class A notes
issued by Aozora Re Ltd. (Aozora Re). The notes will provide
indemnity cover for losses in Japan from typhoons (including but
not limited to windstorm and flood) on a per-occurrence basis
during a four-year risk period.
The rating is based on the lowest of the implied natural-
catastrophe (nat-cat) risk factor ('bb-'), which takes into
account the estimated probability of attachment based on the
variable reset feature; the rating on Sompo Japan Nipponkoa
Insurance Co. (SJNK), the ceding insurer; the rating on the
International Bank of Reconstruction and Development note held in
the collateral account; and the rating on the parent of Citibank
N.A. (London Branch).
When determining the nat-cat risk factor, S&P based its analysis
on the probability of attachment. The initial modeled probability
of attachment and exhaustion are 1.07% and 0.73%, respectively,
and the initial modeled expected loss is 0.90%. This transaction
has a variable reset feature that allows SJNK to adjust the
modeled expected loss within a range of 0.60% to 1.35% at each
annual reset date. Additionally, the modeled probability of
attachment cannot exceed 2.00% at any reset. This is the
probability of attachment used to determine the nat-cat risk
factor for years 2, 3, and 4.
To assign the nat-cat risk factor, S&P applied an adjustment to
reflect that the probability of attachment may be greater than
what the model had anticipated.
RATINGS LIST
New Rating
Aozora Re Ltd. $220 mil Series 2016-1 Class A Notes due 2020
Senior Secured Debt
===========
B R A Z I L
===========
ALLIANZ GLOBAL: S&P Affirms 'BB' Rating; Outlook Negative
---------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'BB' global scale
and 'brAA-' national scale ratings on Allianz Global Corporate &
Specialty Resseguros Brasil S.A. (AGCS Re Brasil). The outlook
was negative. After the affirmation, S&P withdrew all the ratings
at the issuer's request.
In S&P's view, AGCS Re Brasil is a top player in Brazil's
reinsurance market thanks to the strength of the brand and synergy
with other Allianz businesses in Brazil. S&P believes the company
will continue to grow despite a weak economy due to still-low
insurance penetration and regulation that retains part of the
market for domestic reinsurers.
The company also benefits from its status as a strategical
important subsidiary of the Allianz group. In S&P's view, it's
unlikely that AGCS Re Brasil would be sold in the near term due to
the group's strategy to expand its operations in the region. The
shared brand, lines of business, and wide operating and risk
management integration also support our strategically important
assessment of the subsidiary.
On the other hand, the Feb. 17, 2016, downgrade of Brazil to 'BB'
weakened AGCS Re Brasil investment portfolio asset quality,
despite the company's very strong level of capitalization and
conservative investment policy. However, the lower credit quality
of the portfolio has no rating effect on the company, given
ratings on Brazil constrain those on the reinsurer. S&P rarely
rates insurance and reinsurance companies above the sovereign
because of the insurance industry's high exposure to government
debt, particularly in Brazil, where many insurers' investment
portfolios are highly concentrated in government bonds, which
could undermine the companies' capital base and liquidity during a
sovereign distress. None of the Brazilian insurers and reinsurers
S&P rates, including those with a stand-alone credit profiles
higher than the sovereign rating, pass S&P's stress test to have
higher ratings than the sovereign.
BRAZIL: Industry Output Has Biggest Drop in Over Three Years
------------------------------------------------------------
David Biller at Bloomberg News report that Brazil's industrial
output fell the most in more than three years in February as Latin
America's largest economy sank into its second straight year of
recession.
Production sank 2.5 percent in February after a 0.4 percent
increase the prior month, the national statistics agency said,
according to Bloomberg News. That was in line with forecasts from
32 economists surveyed by Bloomberg. From a year earlier,
industrial production fell 9.8 percent, and marked two full years
without recording year-on-year growth, Bloomberg News notes.
Political strife and the highest interest rates in almost a decade
are squelching appetite for investment in Latin America's largest
economy, Bloomberg News relays. The government has mobilized
state bank resources in a bid to ease the impact of the recession
on Brazilians, Bloomberg News discloses. While it hasn't
generated much additional lending, business confidence has
continued rising from its record low last October and capital
goods production recorded two straight gains for the first time in
more than a year, Bloomberg News notes.
"It's too early to say we're seeing a change in trend in capital
goods production because there's nothing that supports investments
right now in Brazil," Luciano Rostagno, chief strategist at Banco
Mizuho do Brasil, told Bloomberg News by phone from Sao Paulo.
"Consumption is slowing, the job market is in sharp deterioration,
there's high inflation, political turmoil, so there are a lot of
uncertainties still, and no reason for investments to rebound."
Output of capital goods, a barometer of investment, rose 0.3
percent after a revised 2.1 percent growth the previous month, and
was the only major component that registered growth in February,
the statistics institute said, Bloomberg News relays. Production
of durable consumer goods fell 5.3 percent after a 3.3 percent
drop the prior month, Bloomberg News discloses.
In late January, Finance Minister Nelson Barbosa announced BRL83
billion ($23 billion) in extra lending by state-run banks to
stimulate investment, Bloomberg News notes. Of that total, only
2.7 percent has been disbursed, which may signal a lack of demand,
local paper Estado de S. Paulo reported March 29, Bloomberg News
adds.
As reported in the Troubled Company Reporter-Latin America on
March 29, 2016, severe contraction that was preceded by several
years of below-trend growth has impaired Brazil's (Ba2 negative)
underlying economic strength, despite the country's large and
diversified economy, says Moody's Investors Service. The
country's credit rating is also coming under pressure from the
government's high level of mandatory spending.
CCB BRASIL: S&P Lowers ICRs to 'B+/B' & Puts on Watch Developing
----------------------------------------------------------------
Standard & Poor's Ratings Service lowered its global scale issuer
credit ratings on CCB Brasil to 'B+/B' from 'BB-/B' and its
national scale rating to 'brBBB' from 'brA-'. S&P placed all
ratings on CreditWatch developing.
The downgrade reflects the bank's worsened capital level following
the breach of the Tier I minimum capital requirement. As a
result, S&P has revised its capital and earnings score to very
weak from weak. According to the central bank's regulation No.
4193 (March 2013), banks have to maintain a Tier I capital level
of at least 6%, in addition to an overall capital ratio of 11%.
As of December 2015, CCB Brasil posted a minimum regulatory Tier I
ratio of 4.26%, below the minimum required. The capital
deterioration was a result of severe credit losses the bank
suffered in 2015 due to the portfolio clean up done by the new
management. S&P believes that CCB Brasil is subject to regulatory
forbearance as the regulator have allowed the bank to continue
operating even though it is in breach of regulatory capital
requirements. As of the same date, its Basel III ratio was above
the minimum requirement of 14.7% due to a Tier II issuance made in
the last quarter of 2015.
The CreditWatch developing listing reflects S&P's belief that the
ratings on the bank could go either way in the next three months.
On one hand, S&P could upgrade the bank following a Tier I capital
improvement. On the other hand, S&P could further downgrade the
bank if it is unable to increase its Tier I ratio, thereby
becoming insolvent.
S&P could upgrade the bank if it succeeds in improving its Tier I
capital ratio to levels above the minimum requirement. This could
happen following a Tier I capital injection or if the bank
deleverages its portfolio in order to reduce its risk weights
assets.
S&P could downgrade the bank if fails to improve its Tier I
capital ratio, which could result in regulatory intervention.
PETROLEO BRASILEIRO: Reduces Managerial Staff by 43%
----------------------------------------------------
EFE News reports that the board of directors of Brazilian state-
controlled oil giant Petroleo Brasileiro S.A. (Petrobras) has
approved a cost-saving plan that includes reducing the company's
managerial staff by 43 percent.
The restructuring strips 2,279 officials in Petrobras' non-
operating areas of the title of manager, which offers better
salaries and benefits than more junior positions, the company said
in a statement, according to EFE News.
Those employees will not be laid off but will see a reduction in
their remuneration.
Early this year, Petrobras' executive officers had proposed
reducing the company's managerial staff by 30 percent, but the
board of directors significantly expanded the number of affected
employees, the report notes.
The cost-saving plan also reduces the number of Petrobras business
units from seven to six by combining its natural gas and refining
divisions, the report relays. It also redistributes the units'
different activities.
The company estimates the plan will result in an annual reduction
of operating costs of nearly BRL1.8 billion (some $500 million),
the report discloses.
It says the changes are necessary due to the sharp decline in oil
prices and the steep depreciation of the real against the dollar,
the report says.
Petrobras posted a record net loss of BRL34.84 billion ($9.7
billion) in 2015, a year in which it began implementing a $98.4
billion divestment plan aimed at reducing its record debt burden,
generating more cash flow and tackling a crisis triggered by the
oil-price plunge, the report relays.
The company also has been hit by a massive graft scandal that
allegedly ran from 2004 to 2014, the report notes.
Prosecutors say executives at the oil giant accepted bribes from
large construction companies in exchange for approving inflated
contracts and funneled some of the money to politicians, the
report adds.
As reported in the Troubled Company Reporter-Latin America on Feb.
26, 2016, Moody's Investors Service downgraded all ratings for
Petroleo Brasileiro S.A. - PETROBRAS ("Petrobras")'s and ratings
based on Petrobras' guarantee, including the company's senior
unsecured debt and Corporate Family Rating to B3 from Ba3. The
company's baseline credit assessment (BCA) was lowered to caa2
from b3. At the same time, Moody's downgraded Petrobras Argentina
S.A. ("PESA")'s ratings, including its senior unsecured medium
term note program and Corporate Family Rating to B3 from B2, in
line with the senior unsecured rating of Petrobras.
==========================
C A Y M A N I S L A N D S
==========================
ACHIEVEMENT CONCENTRATED: Commences Liquidation Proceedings
-----------------------------------------------------------
On Feb. 18, 2016, the sole shareholder of Achievement Concentrated
Master Fund Ltd. 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:
Achievement Asset Management LLC
Donna MacDonald
141 West Jackson Boulevard
Suite 800, Chicago
Illinois 60604
United States of America
Telephone: +1 (312) 444 8707
e-mail: dmacdonald@achievem.com
AD MOVIE: Creditors' Proofs of Debt Due April 4
-----------------------------------------------
The creditors of Ad Movie Inc. are required to file their proofs
of debt by April 4, 2016, to be included in the company's dividend
distribution.
The company commenced liquidation proceedings on Feb. 22, 2016.
The company's liquidator is:
Maricorp Services Ltd.
Roger L. Nelson
Telephone: (345) 49-9710
P.O. Box 2075, Grand Cayman, KY1-1105
Cayman Islands
BENEFIT STREET: Creditors' Proofs of Debt Due April 12
------------------------------------------------------
The creditors of Benefit Street Strategic Fund Limited are
required to file their proofs of debt by April 12, 2016, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on March 2, 2016.
The company's liquidator is:
Keiran Hutchison
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
CITRINE CAYMAN: Creditors' Proofs of Debt Due April 12
------------------------------------------------------
The creditors of Citrine Cayman Fund Limited are required to file
their proofs of debt by April 12, 2016, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on March 2, 2016.
The company's liquidator is:
Keiran Hutchison
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
CQS EELS: Creditors' Proofs of Debt Due April 12
------------------------------------------------
The creditors of CQS Eels Cayman Fund Limited are required to file
their proofs of debt by April 12, 2016, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on March 2, 2016.
The company's liquidator is:
Keiran Hutchison
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
EMERGING MARKETS: Creditors' Proofs of Debt Due April 12
--------------------------------------------------------
The creditors of Emerging Markets Mac Limited are required to file
their proofs of debt by April 12, 2016, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on March 2, 2016.
The company's liquidator is:
Keiran Hutchison
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
FRM COMMODITY: Creditors' Proofs of Debt Due April 12
-----------------------------------------------------
The creditors of FRM Commodity Strategies EUR (Feeder) Ltd are
required to file their proofs of debt by April 12, 2016, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on March 2, 2016.
The company's liquidator is:
Keiran Hutchison
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
FRM MANAGED: Creditors' Proofs of Debt Due April 12
---------------------------------------------------
The creditors of FRM Managed Futures Strategies (Master) Ltd are
required to file their proofs of debt by April 12, 2016, to be
included in the company's dividend distribution.
The company commenced liquidation proceedings on March 2, 2016.
The company's liquidator is:
Keiran Hutchison
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
GLOBAL AG: Creditors' Proofs of Debt Due April 12
-------------------------------------------------
The creditors of Global AG Cayman Fund Limited are required to
file their proofs of debt by April 12, 2016, to be included in the
company's dividend distribution.
The company commenced liquidation proceedings on March 2, 2016.
The company's liquidator is:
Keiran Hutchison
c/o Steve Bull
Ernst & Young Ltd
62 Forum Lane, Camana Bay
P.O. Box 510 Grand Cayman KY1-1106
Cayman Islands
Telephone: (345) 814 9060
HARBORNE INVESTMENTS: Placed Under Voluntary Wind-Up
----------------------------------------------------
On Feb. 29, 2016, the shareholders of Harborne Investments Limited
resolved to voluntarily wind up the company's operations.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
T. Edward G. Bayman
Telephone: +44 (0) 1534787898
Facsimile: +44 (0) 1534787879
c/o Pentera Trust Company Limited
26 Esplanade St. Helier
Jersey JE4 8PS
INTRA-COMMERCE: Creditors' Proofs of Debt Due April 4
-----------------------------------------------------
The creditors of Intra-Commerce Holdings Ltd. are required to file
their proofs of debt by April 4, 2016, to be included in the
company's dividend distribution,
The company commenced liquidation proceedings on Feb. 18, 2016.
The company's liquidator is:
Hugh Dickson
c/o Prudence Pryce
10 Market Street #765,
Camana Bay, Grand Cayman KY1-9006
Cayman Islands
Telephone: (345) 769 7207
Facsimile: (345) 949 7120
JKT HOLDINGS: Creditors' Proofs of Debt Due April 15
----------------------------------------------------
The creditors of JKT Holdings are required to file their proofs of
debt by April 15, 2016, to be included in the company's dividend
distribution.
The company commenced liquidation proceedings on Feb. 24, 2016.
The company's liquidator is:
CDL Company Ltd.
89 Nexus Way, Camana Bay
P.O. Box 31106 Grand Cayman KY1-1205
Cayman Islands
JSA INTERNATIONAL 36879: Commences Liquidation Proceedings
----------------------------------------------------------
On Feb. 23, 2016, the sole shareholder of JSA International
Aircraft 36879, Ltd. 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:
Walkers Liquidations Limited
Cayman Corporate Centre
27 Hospital Road
George Town
Grand Cayman KY1-9008
Cayman Islands
Telephone: +1 (345) 949 0100
JSA INTERNATIONAL 4683: Commences Liquidation Proceedings
---------------------------------------------------------
On Feb. 23, 2016, the sole shareholder of JSA International
Aircraft 4683, Ltd. 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:
Walkers Liquidations Limited
Cayman Corporate Centre
27 Hospital Road
George Town
Grand Cayman KY1-9008
Cayman Islands
Telephone: +1 (345) 949 0100
LILY & BEAUTY: Commences Liquidation Proceedings
------------------------------------------------
On Feb. 22, 2016, the shareholders of Lily & Beauty (Cayman) Inc.
resolved to voluntarily liquidate the company's business.
Only creditors who were able to file their proofs of debt by
March 31, 2016, will be included in the company's dividend
distribution.
The company's liquidator is:
Huang Tao
Kebangshangwu Building, 6th Floor
Lane 333, Rongbei Road
Songjiang District
Shanghai, China
Telephone: +86 021-54250797
MADISON NICHE: Court Grants Petition to Recognize Cayman Cases
--------------------------------------------------------------
A U.S. bankruptcy court granted the petition of the official
liquidators of Madison Niche Assets Fund, Ltd. and Madison Niche
Opportunities Fund, Ltd. to recognize the companies' liquidation
proceedings in Cayman Islands.
Christopher Barnett Kennedy and Matthew James Wright filed Chapter
15 petition in the U.S. Bankruptcy Court in Delaware in order to
get the companies' liquidation proceedings to be recognized as a
foreign main proceeding.
If a foreign proceeding is recognized as a foreign main
proceeding, the automatic stay under Section 362 of the Bankruptcy
Code automatically applies to stay actions against assets of a
debtor located in the United States.
The official liquidators had earlier defended the petition against
criticisms from TMC Consulting Services LLC, saying the
liquidation proceedings satisfy the requirements for recognition
as foreign main proceedings.
The objection had already been resolved, court filings show.
The official liquidators filed the petition on Jan. 11. On Jan.
13, U.S. Bankruptcy Judge Kevin Carey ordered the joint
administration of the companies' Chapter 15 cases.
=========
C H I L E
=========
AUTOMOTORES GILDEMEISTER: Moody's Raises CFR to Caa2
----------------------------------------------------
Moody's Investors Service has upgraded Automotores Gildemeister
global scale corporate family rating to Caa2 from Ca. At the same
time, Moody's affirmed its Ca rating to its Senior Unsecured Notes
due 2021 and 2023. The outlook for all ratings remains stable.
These ratings have been upgraded and affirmed as:
Issuer: Automotores Gildemeister S.A.
-- Corporate Family Rating: upgraded to Caa2 from Ca (global
scale)
-- USD400 million Senior Unsecured Notes due 2021: affirmed its
Ca (foreign currency)
-- USD300 million Senior Unsecured Notes due 2023: affirmed its
Ca (foreign currency)
Outlook:
-- Stable
RATINGS RATIONALE
The corporate family rating upgrade to Caa2 from Ca is supported
by AG's improved capital structure after the company finally
reached an agreement with its main bondholders of over 94% of
company's existing notes, including more than 92% of the 8.250%
Senior Notes due 2021 and more than 96% of the 6.750% Senior Notes
due 2023, to restructure the terms of the existing notes. The
agreement contemplated the exchange of the notes, for a
combination of (i) new Senior Secured Notes that will be secured
by liens on real estate and other assets, (ii) new preferred stock
(iii) and warrants to acquire 39% of the company's common stock.
The Ca rating on the outstanding Senior Unsecured Notes due 2021
and 2023 of about USD 40 million was affirmed reflecting AG's
missed interest payment scheduled in November 2015, before the
company offered senior lenders a debt restructuring. Under the
existing indentures, a missed payment on interest may be cured
within 30 days, but the restructuring indicates that a payment
default will occur.
AG's Caa2 rating still considers its solid market position as one
of the leading automotive distributors and retailers in its
markets in Chile and Peru. The rating also considers the fact
that Hyundai has recently renewed its key distribution agreement
with AG for a two-year term due December 2017. The rating also
incorporates the benefit of AG's hybrid business model as both a
distributor and retailer of car brands which has resulted in
historically above average operating margins when compared to the
traditional U.S. based auto retailers. AG's ratings are
constrained by its very weak credit metrics, high dependence on
the Hyundai brand, as well as the cyclical nature of the
automotive industry and light vehicle sales, which is easily
affected by changes in consumer preferences and product mix.
Going forward, Moody's will closely monitor how the company will
manage its currently weak liquidity position and its ability to
implement new strategies during the challenged operating
environment.
RATIONALE FOR STABLE OUTLOOK
The stable outlook reflects Moody's expectation that AG will be
able to consistently improve its financial and credit metrics and
growth prospects even with a challenging macroeconomic environment
in Chile and Peru.
WHAT COULD MOVE THE RATING UP
A positive action on the ratings or the outlook could be
considered if the ongoing debt restructuring process results in a
sustainable capital structure and adequate liquidity profile.
WHAT COULD MOVE THE RATING DOWN
AG's ratings could be further downgraded if liquidity worsens or
if the company is unable to significantly improve its current
credit metrics. The ratings or outlook could also be downgraded
in case its agreement with Hyundai were to be unfavorably altered.
Structurally, a substantial increase in secured debt could also
lead to a downgrade of the rating
AG S.A., headquartered in Santiago, Chile, is one of the largest
importers and distributors in Chile and Peru operating a network
of company-owned and franchised vehicle dealerships. Its
principal car brand is Hyundai for which it is the sole importer
in both of its markets. For the last twelve months ended
Sept. 30, 2015, AG reported consolidated net revenues of about USD
1.2 billion with approximately 58.1% being generated from its key
market, Chile.
GUANAY FINANCE 2013-1: S&P Lowers Rating on $450MM Notes to 'BB'
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on Guanay
Finance Ltd.'s $450 million fixed-rate notes series 2013-1 to 'BB'
from 'BBB-'.
The note issuance is a securitization backed by airline ticket
receivables and cargo services related to services provided by
LATAM Airlines Group S.A. under IATA code 045.
S&P's rating reflects:
-- LATAM Airlines Group S.A.'s ability to generate the specific
flow of receivables that are being securitized which is
addressed through the corporate performance assessment;
-- The ability of the receivables to generate sufficient cash
flows to repay the debt obligations of the transaction plus
the transaction's supportive structural features; and
-- The risk of sovereign interference.
The rating action follows S&P's recent downgrade of its global
scale corporate credit ratings on the originator of the flows,
LATAM Airlines Group S.A. (LATAM), to 'BB-/Negative' from
'BB/Negative' and the subsequent revision of the corporate
performance assessment, which is one of the three building blocks
used in rating this transaction and constrains its rating.
The negative rating actions on the originator reflect the group's
weak operating performance in Brazil due to aggressive price
competition amid significant oversupply in that market, the weak
demand resulting from a recession, and currency depreciation,
which limits LATAM's profitability because a large portion of the
company's revenues are in Brazilian reals, while most of its costs
are denominated in U.S. dollars.
The corporate performance risk assessment--which addresses the
likelihood of LATAM's ability to continue operating irrespective
of a restructuring or default on its corporate debt obligations--
is the starting point of S&P's analysis, and in this case, the
rating cap. It determines the number of notches, if any, S&P can
rate a security above our long-term issuer credit rating (ICR) on
the corporation.
This revision reflects the downgrade on the company and S&P's view
that the underperformance of LATAM's operations, combined with
increasing local and international competition, will challenge
profitability levels for all of the company's international routes
in a stress scenario. Furthermore, even though S&P expects the
routes to continue operating and coverage ratios to remain
adequate over the coming years, any improvement in the performance
of those routes has not ramped up as S&P originally forecasted,
resulting in much less headroom and more pressured coverage ratios
in a stress scenario, which no longer supports S&P's view of a
two-notch differentiation to the corporate credit rating.
As of Feb. 29, 2016, the reported monthly debt to service coverage
ratio was 3.425x, above the transaction's threshold of 1.75x to
declare an early amortization event. S&P expects further
downgrades on the notes in line with rating actions on Latam
Airlines, which in turn reflect S&P's view of the credit quality
of the flows.
S&P will continue to monitor the rating on this structured finance
transaction and revise the rating as necessary to reflect any
changes in the transactions' underlying credit quality.
===================
C O S T A R I C A
===================
BANCO POPULAR: Fitch Affirms 'BB+' IDR; Outlook Negative
--------------------------------------------------------
Fitch Ratings has affirmed Banco Popular y de Desarrollo Comunal's
(BPDC) long-term foreign currency Issuer Default Rating (IDR) and
local currency long-term IDR at 'BB+'. The Rating Outlook is
Negative. Fitch has also affirmed the bank's short-term foreign
currency IDR and short-term local currency IDR at 'B', its
Viability Rating (VR) at 'bb+', its Support Rating (SR) at '3' and
Support Rating Floor (SRF) at 'BB'. The national ratings in Costa
Rica and of the bank issuances in El Salvador and Panama were also
affirmed.
The Negative Outlook reflects the sovereign's high level of
influence over the financial sector and the broader operating
environment. The bank's IDRs would be downgraded in the event of
a Costa Rican sovereign downgrade. Conversely, a revision of the
Outlook for the sovereign's IDR to Stable would likely prompt a
similar action on the Outlook for the bank's IDR.
KEY RATING DRIVERS
IDRS, NATIONAL RATINGS AND SENIOR DEBT
BPDC's VR drives its IDRs and National Ratings. The bank's
ratings are at the same level of the sovereign rating, reflecting
the high influence of the operating environment over the bank's
performance. BPDC's ratings also consider the bank's company
profile. Its financial performance is underpinned by its public
nature and the benefits granted by law, such as mandatory
capitalization and inflow of deposits. In Fitch's view, the
bank's role in the pension regime as depositary of mandatory
savings from Costa Rican workers, its market share in consumer
lending and its franchise evidence its systemic importance. The
national ratings of the senior unsecured debt ratings in El
Salvador and Panama reflect the relative strength of the Costa
Rican bank relative to other issuers in those countries.
Ratings also consider BPDC's ample loss absorption capacity and
consistent profitability, adequate asset quality, ample deposit
based funding, and moderate tenure mismatches in its asset and
liability structure.
In Fitch's view, BPDC's solid capital position is its core
strength, with a Fitch core capital ratio of 22% outperforming
most national and international peers. Capital ratios mark a
downward trend driven by strong asset growth. However, in Fitch's
opinion, BPDC's loss absorption capacity remains ample and
sustainable, benefitted by robust profitability, commensurate with
the rating.
The bank's profitability is commensurate with the riskier profile
of its target segment. The bank's high profitability is
underpinned by sustained growth and ample margins. In Fitch's
view, the reductions in the reference interest rate in local
currency could somewhat pressure the bank's year end
profitability, as a moderate proportion of the loan portfolio
granted in local currency is linked to the reference interest
rate.
Asset quality metrics are adequate. In Fitch's view, the
relatively higher risk of the bank's loan portfolio, oriented to
consumer and mortgage loans is controlled by adequate collateral
coverage, effective collection mechanisms and sufficient reserves
coverage for non-performing loans (NPLs). The security investment
portfolio is managed in a conservative manner to maintain adequate
liquidity support for public deposits. The bank's investment
portfolio maintains a high proportion of liquid assets, despite
some concentration in sovereign risk.
Funding and liquidity are generally stable. The bank's funding
relies on a low cost, deposits based funding structure. Deposits
have seen a drop in their relative share since 2014. Funding is
well diversified but long term tenor mismatches are present.
Liquidity is in line with the bank's liability structure and
comprised of local deposits and securities.
SUPPORT RATING AND SUPPORT RATING FLOOR
The bank's SR of '3' and SRF of 'BB' reflect the moderate
probability of support from the Costa Rican Government despite
having no explicit guarantee, given the nature of the bank and its
systemic importance.
RATING SENSITIVITIES
IDRS, NATIONAL RATINGS AND SENIOR DEBT
Potential upgrades of the bank's IDRs and VR are limited over the
ratings horizon. The Negative Outlook reflects that BPDC's IDR
and VRs would be downgraded in the event of a Costa Rican
sovereign downgrade. Conversely, a revision of the sovereign's
IDR Outlook to Stable would likely prompt a similar action on the
bank's IDR Outlooks.
A downgrade of the bank's VR and IDRs could also be driven by a
significant deterioration in profitability and asset quality that
lead to a substantial drop in capital levels. However, the
ratings would not be downgraded to below its Support Rating Floor
of 'BB'. Fitch's Support Rating of '3' indicates the agency's
opinion there is a moderate probability of support from the
government.
SUPPORT RATING AND SUPPORT RATING FLOOR
BPDC's support SR and SRF are sensitive to changes in the
sovereign rating. In case the Costa Rican sovereign rating is
downgraded, the SR and SRF of the bank would also be downgraded.
Fitch has affirmed BPDC's ratings as:
-- Long-term foreign currency IDR at 'BB+', Outlook Negative;
-- Short-term foreign currency IDR at 'B';
-- Long-term local currency IDR at 'BB+', Outlook Negative;
-- Short-term local currency IDR at 'B';
-- Viability Rating at 'bb+';
-- Support Rating at '3';
-- Support Rating Floor at 'BB'.
National Ratings
Costa Rica
-- Long-term national rating at 'AA+(cri)'; Outlook Stable;
-- Short-term national rating at 'F1+(cri)';
-- Long-term senior unsecured debt in local currency and
foreign currency at 'AA+(cri)';
-- Short-term senior unsecured debt in local currency and
foreign currency at 'F1+(cri)'.
El Salvador
-- Long-term senior unsecured debt at 'AAA(slv)'; Outlook
Stable;
-- Short-term senior unsecured debt at 'F1+(slv)'.
Panama
-- Long-term senior unsecured debt at 'AA-(pan)';
-- Short-term senior unsecured debt at 'F1+(pan)'.
=====================
E L S A L V A D O R
=====================
SISA VIDA: Fitch Keeps 'BB' Int'l. Scale IFS Rating on Watch Neg.
-----------------------------------------------------------------
Fitch Ratings has maintained on Rating Watch Negative the Insurer
Financial Strength ratings of 'BB' on the International scale and
'AAA(slv)' on the National scale of Seguros e Inversiones y
Filial, S.A. (SISA) and SISA Vida S.A., Seguros de Personas SISA's
parent company is Citigroup, Inc.
This rating action is based on the sale agreement between
Citigroup and Terra Group on the insurance operations, consumer
banking and commercial banking operations in El Salvador. The
transaction is subject to approval by regulators of El Salvador.
Terra Group (not rated by Fitch) is a conglomerate based in
Honduras that participates in several key industry sectors of
Central American economies as well as in some South American
countries. Terra Group has a track record of 37 years with
investments in El Salvador since 2008, but this will be its first
incursion into the financial and insurance sector.
KEY RATING FACTORS
According to Fitch's Financial Groups Criteria, the current
ratings are based on the potential support that SISA and its
subsidiary would receive from its shareholders if needed. The
agency believes that Citigroup (Fitch international scale rating
'A'/Outlook Stable) has the financial capacity to support these
subsidiaries. In Fitch's view, support from Citigroup will be
forthcoming until the transaction is approved by regulators.
SISA's technical profitability is wide in relation to its local
and regional peers. As of Dec. 31, 2015, SISA registered a
combined ratio of 80% and operating ratio of 73% versus 99% and
93% respectively, of the average industry. This good performance
reflects the benevolence of the underwritten risks and business
mix.
By the end of 2016 profitability of the insurance company may be
pressured by lower written premiums and soft market conditions,
but Fitch expects it to remain at levels close to the industry,
given SISA's decision to maintain adequate subscription and
pricing policies.
Capitalization levels are adequate. Capital quality is good, and
leverage ratios are consistent with business profile, even at the
superior court of the market. As Dec. 31 2015, operating and
financial leverage were 1.5x versus 1.1x and 1.3x times of the
market. These ratios were affected by payout of dividends for
$US25 million in 2015.
In the first quarter of 2016, leverage ratios temporarily will
increase due to a similar pay out of dividends, but these ratios
may return to levels close to the market average.
Liquidity levels are ample. The investment portfolio is placed in
fixed income securities with adequate credit quality. Investment
portfolio is comprised by sovereign securities and deposits in
domestic banks; all are rated non-investment grade. The reserves'
coverage over liquid assets is ample and stands at the upper level
of the local market and its peers in the region, 2.4x. at Dec. 31,
2015.
RATINGS SENSITIVITIES
Fitch's decision to place SISA and its subsidiary on Rating Watch
Negative indicates that the companies' ratings will no longer
benefit from the financial strength of Citigroup once the
transaction is completed in the following months. Upon the
completion of the acquisition by Terra Group, SISA will be rated
strictly on the basis of their own financial profiles.
Fitch has taken the following rating actions on Seguros e
Inversiones y Filial and Sisa Vida:
-- Fitch National scale IFS rating of 'AAA(slv)' maintained on
Rating Watch Negative;
-- Fitch International scale IFS rating of 'BB' maintained on
Rating Watch Negative.
In applying Fitch's insurance criteria with respect to the impact
of ownership on Seguro's Inbursa rating, Fitch considered how
ratings would theoretically be impacted under Fitch's bank support
criteria. Fitch's insurance criteria with respect to ownership is
principles-based, and the noted bank criteria was used to help
inform Fitch's judgment in applying those principles.
===========
M E X I C O
===========
EMPRESAS ICA: S&P Affirms 'D' CCR & Sr. Unsecured Debt Ratings
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'D' global scale and national scale corporate credit ratings and
senior unsecured debt ratings on Empresas ICA, S.A.B. de C.V. At
the same time, S&P affirmed its '5L' recovery rating on the
company's senior unsecured debt, indicating recovery prospects
between 10% and 30%.
After ICA's Dec. 18, 2015 announcement of a missed interest
payment on its 2024 notes, S&P downgraded the company to 'D'. ICA
is still working on restructuring its defaulted obligations. Once
its debt restructuring is completed, S&P will reassess company's
credit quality.
RECOVERY ANALYSIS
Key analytical factors
-- S&P's assessment of the recovery prospects and issue-level
ratings for the company remains unchanged. S&P has valued
ICA on a going concern basis using a 4.0x multiple of S&P's
projected emergence EBITDA.
-- Projected emergence EBITDA of approximately MXN2.49 billion.
This estimate assumes that operating activities in the
construction division are scaled back during 2016, which
would bring the division's EBITDA close to zero.
-- S&P's recovery rating on the company's $500 million,
$700 million, and $150 million senior unsecured notes is
'5', indicating S&P's expectation of a modest (10% to 30%;
the lower band of the range) recovery for unsecured lenders
in the event of a payment default.
Simplified waterfall
-- Net enterprise value (after 5% administrative costs):
MXN4.40 billion.
-- Recovery expectations: 10%-30%.
MEXICO: Cuts 2017 Budget as Stagnant Oil, Exports Weigh on Rating
-----------------------------------------------------------------
Nacha Cattan at Bloomberg News reports that Mexico plans to cut
spending next year in order to meet its zero deficit target as
manufacturing exports slowed and lower oil prices weighed on
revenue.
After slashing 2016 spending by MXN132 billion ($7.6 billion),
Mexico estimates a MXN175 billion reduction in outlays next year
compared to this year's budget, the Finance Ministry said in a
report to congress, according to Bloomberg News. Latin America's
second-largest economy will grow 2.6 percent to 3.6 percent next
year, down from the 3.5 percent to 4.5 percent range forecast in a
September budget report, according to the document that lays out
initial parameters for next year's budget, Bloomberg News notes.
The measures come a day after Moody's Investors Service cut state-
owned Petroleos Mexicanos' credit rating to the cusp of junk and
reduced Mexico's outlook to negative amid subdued growth and the
possibility Pemex will need financial help from the government,
Bloomberg News relays.
Economic growth this year is expected to slow amid sluggish
manufacturing exports, according to analyst surveys.
The budget cuts are necessary for Mexico to reduce its fiscal
deficit to zero as a percentage of GDP, excluding investment in
"high impact projects," the report states, Bloomberg News
discloses. Including those investments, 2017's deficit will
shrink to 2.5 percent of GDP from 3 percent this year, Bloomberg
News relays. In addition, the largest measure of debt will begin
contracting in 2017, the ministry said, Bloomberg News notes.
The report predicts an average export price of Mexican crude of
$35 per barrel next year, up from $25 this year, Bloomberg News
discloses. Mexico's government has hedges that give it the right
to sell its 2016 crude exports at $49 per barrel, and Finance
Minister Luis Videgaray has said he will seek price protection for
next year, Bloomberg News says.
The Mexican government expects oil output of 2.12 million barrels
per day this year. Production will fall to 2.03 million barrels a
day in 2017, according to the report, Bloomberg News notes.
Moody's lowered Pemex two levels to Baa3 from Baa1, its lowest
investment grade rating, as lower oil prices worsen the outlook
for its credit outlook, Bloomberg News adds.
VINTE VIVIENDAS: Moody's Withdraws B1 Corporate Family Rating
------------------------------------------------------------
Moody's de Mexico has withdrawn for business reasons Vinte
Viviendas Integrales, S.A.P.I. de C.V.'s B1/Baa1.mx Corporate
Family Ratings.
RATINGS RATIONALE
Moody's has withdrawn the ratings for its own business reasons.
These ratings were withdrawn:
LT Corporate Family Rating, B1
NSR LT Corporate Family Rating, Baa1.mx
Prior to the withdrawal, the outlook on the ratings was positive.
The principal methodology used in these ratings was Homebuilding
And Property Development Industry published in April 2015.
The period of time covered in the financial information used to
determine Vinte Viviendas Integrales, S.A.P.I. de C.V.'s rating is
between 01/01/2012 and 12/31/2015 (source: Vinte and Mexican Stock
Exchange (BMV)).
=================
N I C A R A G U A
=================
* NICARAGUA: IMF to Close Resident Representative's Office
----------------------------------------------------------
The International Monetary Fund will close its resident
representative office in Managua which has been headed by Mr. Juan
Zalduendo effective August 1, 2016. This decision reflects
Nicaragua's success in maintaining macroeconomic stability and
growth since the conclusion of the Enhanced Credit Facility
supported program in 2011. The Managua post has been maintained
with IMF and local staff since 1995, including during various
financial assistance programs.
The Fund is committed to maintaining the close cooperation and
open dialogue that has characterized its relations with Nicaragua
over the past two decades and will continue providing high quality
policy advice and technical assistance through regular IMF staff
visits. The Fund would like to express its appreciation to the
Nicaraguan people for their warm hospitality over the years.
As reported in the Troubled Company Reporter-Latin America on Feb.
15, 2016, Standard & Poor's Ratings Services assigned its 'B+'
long-term local and foreign currency sovereign credit ratings to
the Republic of Nicaragua. The outlook on the long-term ratings
is stable. S&P also assigned 'B' short-term local and foreign
currency sovereign credit ratings.
S&P also assigned a transfer and convertibility (T&C) assessment
of 'BB-' to Nicaragua.
======================
P U E R T O R I C O
======================
FRONTIER STAR: Gets Court Approval for Western Alliance Deal
------------------------------------------------------------
A bankruptcy judge has approved a settlement tied to the sale of
Frontier Star's assets to Starcorp LLC.
The settlement, approved by Judge Eddward P. Ballinger Jr. of the
U.S. Bankruptcy Court in Arizona, required Frontier Star to pay
$23.2 million to Western Alliance Bank.
In exchange, Western Alliance agreed to the sale of the assets
that Frontier Star used as collateral for the $25 million loan it
received from the bank prior to its bankruptcy filing.
The deal also required payment of $6.75 million to Hardee's
Restaurants LLC and Carl's Jr. Restaurants LLC.
Meanwhile, $250,000 of the sale proceeds will be reserved for
payment of claims of general unsecured creditors, according to the
settlement agreement.
The settlement had earlier drawn opposition from taxing agencies
and landlords. Objections that have not been resolved were
overruled by the bankruptcy court, according to court filings.
About Frontier Star
Guadalupe, Arizona-based Frontier Star LLC and Frontier Star CJ
LLC are large Carl's Jr. and Hardee's franchisees operated by
three grandchildren of Carl Karcher, who founded the Carl's Jr.
hamburger chain, now owned by parent company CKE Restaurants, Inc.
The grandchildren include the LeVecke siblings Carl, Margaret and
Jason, who is listed as chief executive officer/manager of both
companies. The LeVecke siblings had more than 130 Carl's Jr. and
Hardee's franchises in seven states and Puerto Vallarta, Mexico,
as of late 2013.
Frontier Star, LLC and Frontier Star CJ, LLC filed Chapter 11
bankruptcy petitions (Bankr. D. Ariz. Lead Case No. 15-09383) on
July 27, 2015. The petitions were signed by Jason LeVecke as
CEO/manager. The Cavanagh Law Firm serves as counsel to the
Debtors.
On November 19, 2015, P. Gregg Curry was appointed as the Debtors'
Chapter 11 trustee.
Frontier Star disclosed $71.9 million in assets and $27.3 million
in debt in its schedules.
FRONTIER STAR: Chapter 11 Trustee Announces Closing of Asset Sale
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Frontier Star LLC's Chapter 11 trustee announced on March 31 that
the sale of the company's assets to Starcorp LLC has closed.
The announcement came a day after Judge Eddward Ballinger Jr. of
the U.S. Bankruptcy Court in Arizona approved the sale of almost
all assets of Frontier Star and its affiliates.
Starcorp's offer includes $40 million in cash and the assumption
of debts. The assets it purchased consist mostly of equipment and
inventory used to operate the companies' restaurants.
Frontier Star and Frontier Star CJ, LLC are the franchisees of 79
Hardee's restaurants and 85 Carl's Jr. restaurants.
The ruling required payment of $23.158 million by Frontier Star to
Western Alliance Bank as part of a settlement agreement that the
bankruptcy judge approved in a separate order on March 30.
Western Alliance, which had previously opposed the sale, asserts
liens on the assets that Frontier Star used as collateral for the
$25 million loan it received from the bank prior to its bankruptcy
filing.
Judge Ballinger also ordered Frontier Star to pay $665,000 to
Sterling National Bank, a secured creditor, in exchange for
allowing the company to sell the bank's collateral. The bank had
previously opposed the sale.
The sale had also drawn opposition from state taxing agencies and
various groups.
Frontier will create reserves for tax claims to resolve the taxing
agencies' objections. Objections that have not been resolved were
overruled by the court, according to court filings.
About Frontier Star
Guadalupe, Arizona-based Frontier Star LLC and Frontier Star CJ
LLC are large Carl's Jr. and Hardee's franchisees operated by
three grandchildren of Carl Karcher, who founded the Carl's Jr.
hamburger chain, now owned by parent company CKE Restaurants, Inc.
The grandchildren include the LeVecke siblings Carl, Margaret and
Jason, who is listed as chief executive officer/manager of both
companies. The LeVecke siblings had more than 130 Carl's Jr. and
Hardee's franchises in seven states and Puerto Vallarta, Mexico,
as of late 2013.
Frontier Star, LLC and Frontier Star CJ, LLC filed Chapter 11
bankruptcy petitions (Bankr. D. Ariz. Lead Case No. 15-09383) on
July 27, 2015. The petitions were signed by Jason LeVecke as
CEO/manager. The Cavanagh Law Firm serves as counsel to the
Debtors.
On November 19, 2015, P. Gregg Curry was appointed as the Debtors'
Chapter 11 trustee.
Frontier Star disclosed $71.9 million in assets and $27.3 million
in debt in its schedules.
INSTITUTO MEDICO: Taps FPV & Galindez for Audit Services
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Instituto Medico del Norte, Inc., sought and obtained leave from
the U.S. Bankruptcy Court for the District of Puerto Rico to
employ FPV & Galindez, CPA PSC, to provide audit, tax and
management consulting services.
Mr. Julio A. Galindez will audit the Company's financial
statements as of and for the year ended Dec. 31, 2014, and will
issue a report thereon as soon as reasonably possible after
completion of work.
The report will also include the preparation of the Company's
states tax returns for the year ended Dec. 31, 2013. It will also
include management consulting services on third-party
reimbursement. Finally, the firm will assist the Debtor with the
Agreed Upon Procedures Report of the Company as required to be
filed with the Puerto Rico Treasury Department for the request of
waiver for the additional gross income tax imposed by Act 40-2013
and pursuant to Circular Letter No. 13-05
Mr. Axel Ramirmez and Levi D. Villegas, members of the CPA Firm,
will applly for the and to try to obtain a tax exemption decree
for the Instituto under Act No. 196 of June 30, 1968.
The estimated fees are segregated as follows:
Audit $33,600
Taxes $6,200
Consulting $11,400
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Total $51,200
The Debtor believes that FPV does not hold or represent any
interest adverse to the estate, and is a "disinterested" party as
required as required 11 U.S.C. 327(a).
About Instituto Medico
Instituto Medico del Norte, Inc. -- aka Centro Medico Wilma N.
Vazquez, aka Hospital Wilma N. Vazquez Skill Nursing Facility of
Centro Medico Wilma N. Vazquez -- sought protection under Chapter
11 of the Bankruptcy Code on Oct. 30, 2013 (Bankr. D.P.R. Case No.
13-08961). The case is assigned to Judge Mildred Caban Flores.
The Debtor scheduled $20,843,692 in total assets and $20,107,642
in total liabilities. The Debtor, however, said its real property
has a book value of $16,000,000 and personal property is worth
$6,105,979.
The Debtor is represented by Fausto David Godreau Zayas, Esq., and
Rafael A. Gonzalez Valiente, Esq., at Latimer Biaggi Rachid &
Godreau, in San Juan, Puerto Rico. Luis B. Gonzalez & Co. CPA's
P.S.C. serves as accountant.
The U.S. Trustee for the District of Puerto Rico has appointed Dr.
Carlos Mellado (b/t Lcda Dinorah Collazo Ortiz) as patient care
ombudsman.
* * *
MCS Advantage, Inc, MCS Life Insurance Company, Medical Card
System, Inc., have filed a motion to convert the bankruptcy case
to a liquidation under Chapter 7.
INSTITUTO MEDICO: Plan Confirmation Hearing on April 26
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A confirmation hearing is scheduled for April 26, 2016, at 2:00
p.m. at Jose V Toledo Fed Bldg & US Courthouse, 300 Recinto Sur
Street, Courtroom 2 Second Floor, San Juan, Puerto Rico, to
consider Instituto Medico Del Norte, Inc.'s Amended Plan of
Reorganization dated Aug. 31, 2015.
The Plan provides for a 5% recovery for holders of unsecured
claims. Under the Plan:
* Holders of all allowed unsecured claims of less than $10,000
will receive 5% of the allowed amount of their claim, not to
exceed $500, per claim, within 90 days of the Effective Date of
the Plan.
The aggregate of allowable claims under this class, not including
class 12 elections total $378,991. The aggregate distribution in
this class is expected to be $18,952.
* General Unsecured claims allowed for amounts more than
$10,000 will receive 5% of the allowed amount of their claim, in
60 consecutive installments, without interest, commencing 60 days
after the Effective Date of the Plan. The aggregate monthly
payments under this class are expected to be $5,265. Claims for
bodily injury covered by insurance will be paid by the related
insurance company.
The equity security holders of prepetition common shares will
receive no distribution for their interest, however they will be
allowed to retain their existing shares in the Debtor's
corporation. No dividends will be payable to prepetition
shareholders during the payment plan term and until all other
administrative, priority and unsecured classes are paid as stated
in this plan.
* The allowed claims arising from assumed executory contracts,
will be paid in full satisfaction of such claims through different
payment plans negotiated with the contract parties. Scheduled
executory contracts totaled $455,804, however proofs of claims and
adjustments reduced the amounts expected to be allowed, but with
the adjustments to the scheduled amount of Continental Casualty,
the amount expected to be allowed decreases to $383,299. The
Debtor reached an agreement with CIRACET to pay 50% of their claim
in 18 equal monthly installments of $1,639.
A copy of the First Amended Disclosure Statement is available for
free at:
http://bankrupt.com/misc/Instituto_M_492_Am_Plan.pdf
About Instituto Medico
Instituto Medico del Norte, Inc. -- aka Centro Medico Wilma N.
Vazquez, aka Hospital Wilma N. Vazquez Skill Nursing Facility of
Centro Medico Wilma N. Vazquez -- sought protection under Chapter
11 of the Bankruptcy Code on Oct. 30, 2013 (Bankr. D.P.R. Case No.
13-08961). The case is assigned to Judge Mildred Caban Flores.
The Debtor scheduled $20,843,692 in total assets and $20,107,642
in total liabilities. The Debtor, however, said its real property
has a book value of $16,000,000 and personal property is worth
$6,105,979.
The Debtor is represented by Fausto David Godreau Zayas, Esq., and
Rafael A. Gonzalez Valiente, Esq., at Latimer Biaggi Rachid &
Godreau, in San Juan, Puerto Rico. Luis B. Gonzalez & Co. CPA's
P.S.C. serves as accountant.
The U.S. Trustee for the District of Puerto Rico has appointed Dr.
Carlos Mellado (b/t Lcda Dinorah Collazo Ortiz) as patient care
ombudsman.
* * *
MCS Advantage, Inc, MCS Life Insurance Company, Medical Card
System, Inc., have filed a motion to convert the bankruptcy case
to a liquidation under Chapter 7.
SISTEMA UNIVERSITARIO: S&P Lowers Rating to 'BB+'; Outlook Stable
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Standard & Poor's Ratings Services lowered its long-term rating to
'BB+' from 'BBB-' on the Puerto Rico Industrial, Tourist,
Educational, Medical, and Environmental Control Financing
Authority's revenue debt, issued for Sistema Universitario Ana G.
Mendez Inc. (SUAGM or the system). Standard & Poor's also lowered
its issuer credit rating (ICR) on the system to 'BB+' from 'BBB-'.
The outlook is stable.
"The downgrade reflects our view of a deterioration in the
system's GAAP operating performance in the past two fiscal years,
and very low available resource ratios for the rating category,"
said Standard & Poor's credit analyst Shivani Singh. "We believe
the system's high student revenue dependence and heavy reliance on
Pell and similar federal grants for tuition revenues limits
tuition flexibility and makes the system vulnerable to potential
federal funding or eligibility changes."
In S&P's view, Puerto Rico's prolonged recession, structural
deficits, and economic uncertainty will further constrain consumer
budgets. While the system's enrollment has been stable in several
years, depressed economic conditions and general population loss
on the island could pressure enrollment in the near-term.
The stable outlook reflects Standard & Poor's opinion that during
the one-year outlook period, enrollment will likely remain near
current levels and that SUAGM will work toward restoring balanced
GAAP financial operations. S&P also expects the system to improve
available resource ratios and maintain compliance with all debt
covenants.
A negative rating action during the next one year could occur if
enrollment materially decreases, GAAP operating deficits are
similar to fiscal 2015 levels or accelerate, or available resource
ratios deteriorate.
In S&P's view, a positive rating action is unlikely to occur
during the outlook period unless there is a meaningful improvement
in available resource ratios and full-accrual operating
performance.
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T R I N I D A D & T O B A G O
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ARCELORMITTAL: Stress for Retrenched Steel Workers
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Trinidad Express reports that at least eight families are seeking
psychiatric help to cope with the termination of the breadwinner
by steel giant ArcelorMittal.
And there has been more than one attempted suicide in the last two
months as a result of the company's move to send home its 600-plus
workforce, the Trinidad Express was told by an official at the San
Fernando General Hospital.
President of the Steel Workers' Union of Trinidad and Tobago
(SWUTT) Christopher Henry said former workers and their families
were extremely stressed out over the lack of employment as the
shutting down of the plant in Point Lisas "came like a thief in
the night," according to the report.
The report, citing The Guardian, notes that the wife of a former
worker tried to commit suicide.
Mr. Henry said while he could not give out details of special
cases, many were either seeking psychiatric help or medical help,
the report adds.
As reported in the Troubled Company Reporter-Europe on Feb. 15,
2016, Standard & Poor's Ratings Services affirmed its 'BB/B' long-
term and short-term corporate credit ratings on global integrated
steel producer ArcelorMittal. The outlook is negative.
***********
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