/raid1/www/Hosts/bankrupt/TCRLA_Public/160617.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
Friday, June 17, 2016, Vol. 17, No. 119
Headlines
A R G E N T I N A
ARGENTINA: Resumes Inflation Reporting; Consumer Prices Up 4.2%
COLCAR SERIE I: Moody's Assigns Caa3(sf) GS Rating on VRDB
PROVIDENCIA COM. ARGENTINA: Moody's Withdraws B3 IFS Rating
SANTA FE PROVINCE: Moody's Assigns B3 First Time Issuer Rating
B O L I V I A
BISA LEASING: Moody's Assigns Ba3 GS Rating to US$4MM Issuance
BISA SEGUROS: Moody's Affirms Ba3/Aaa.bo GLC and NS IFS Ratings
YPFB TRANSIERRA: Moody's Changes Outlook to Neg; Ba3 CFR Affirmed
B R A Z I L
BANCO DO ESTADO: S&P Puts 'BB' LT GS Rating on CreditWatch Neg.
BRAZIL: Outgoing Central Bank Sees Growth But No Room to Cut Rate
HSBC BANK BRAZIL: Moody's Cuts Deposit Ratings to Ba2; Outlook Neg
TRX SECURITIZADORA: Moody's Cuts Global Scale Rating to Ba1(sf)
C A Y M A N I S L A N D S
ACMAN FUND: Shareholders' Final Meeting Set for July 13
APOGEE FUND: Commences Liquidation Proceedings
BERKELEY HANOVER: Creditors' Proofs of Debt Due June 17
BOW STREET: Commences Liquidation Proceedings
CAMIF ASSOCIATES: Creditors' Proofs of Debt Due June 27
HERRING CREEK: Placed Under Voluntary Wind-Up
SATELLITE OVERSEAS: Commences Liquidation Proceedings
SATELLITE OVERSEAS V: Commences Liquidation Proceedings
SATELLITE OVERSEAS VI: Commences Liquidation Proceedings
SATELLITE OVERSEAS IX: Commences Liquidation Proceedings
UCGP (F): Commences Liquidation Proceedings
WILTSHIRE CAPITAL: Commences Liquidation Proceedings
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: Exports Plunge US$400MM on Haiti Border
DOMINICAN REPUBLIC: To Cleanup Major Gold Mine's Toxic Waste
M E X I C O
CUAUTITLAN IZCALLI: Moody's Affirms Ba3 GS Issuer Rating
P U E R T O R I C O
FERRETERIA PALOMAS: Taps Orlando Loperena Lopez as Auditor
KOMODIDAD DISTRIBUTORS: Seeks to Access FirstBank's Collateral
PUERTO RICO ELECTRIC: Said to Offer Plan to Avert July Default
SPORTS AUTHORITY: Creditors Committee Has Limited Obj. to Sale
SPORTS AUTHORITY: Auction for Unsold Assets Adjourned to June 29
T R I N I D A D & T O B A G O
* TRINIDAD & TOBAGO: Budgeted Oil Price Should Have Been US$30
- - - - -
=================
A R G E N T I N A
=================
ARGENTINA: Resumes Inflation Reporting; Consumer Prices Up 4.2%
----------------------------------------------------------------
EFE News reports that Argentina's government has resumed inflation
reporting after a six-month hiatus, revealing that consumer prices
rose 4.2 percent in May from the previous month.
After his inauguration last December, conservative President
Mauricio Macri said he would suspend the publication of inflation
figures, whose reliability under two previous leftist heads of
state -- Cristina Fernandez and her late husband Nestor Kirchner -
- had been questioned since early 2007, and develop a new method
for measuring consumer prices, according to EFE News.
* * *
On April 19, 2016, the Troubled Company Reporter-Latin America
reported that Moody's Investors Service upgraded on April 15,
2016, Argentina's government bond rating to B3 from Caa1, with the
outlook changed to stable from positive. The key drivers for the
upgrade are (i) Moody's expectation that Argentina will settle
holdout creditor claims which will result in a lifting of court
injunctions and clear the way for Argentina to access
international capital markets, as well as the likelihood that
Argentina will make payments to restructured bondholders increased
significantly following an April 13, US circuit court ruling in
favor of Argentina, and (ii) the economic policy improvements
since Mauricio Macri's administration took office last December.
The new government lifted capital controls and allowed the peso to
float more freely, reduced energy and transportation subsidies and
has begun to address longstanding macroeconomic imbalances.
As previously reported by the TCR-LA, Argentina defaulted on some
of its debt late July 30, 2014, after expiration of a 30-day grace
period on a US$539 million interest payment. Earlier that day,
talks with a court-appointed mediator ended without resolving a
standoff between the country and a group of hedge funds seeking
full payment on bonds that the country had defaulted on in 2001.
A U.S. judge had ruled that the interest payment couldn't be made
unless the hedge funds led by Elliott Management Corp., got the
US$1.5 billion they claimed. The country hasn't been able to
access international credit markets since its US$95 billion
default 13 years ago.
On March 30, 2016, after more than 12 hours of debate in the
Senate, Argentina's Congress passed a bill that will allow the
government to repay holders of debt that the South American
country defaulted on in 2001, including a group of litigating
hedge funds that won judgments in a New York court. The bill
passed by a vote of 54-16.
On March 24, 2016, Fitch Ratings has upgraded Argentina's Long-
term local-currency Issuer Default Rating (LT LC IDR) to 'B' from
'CCC', with a Stable Outlook. Fitch has affirmed Argentina's Long-
term foreign-currency (FC) IDR at 'RD' and the short-term FC IDR
at 'RD'. In addition, Fitch has upgraded the Country Ceiling to
'B' from 'CCC'.
COLCAR SERIE I: Moody's Assigns Caa3(sf) GS Rating on VRDB
----------------------------------------------------------
Moody's Latin America has rated the new structure of Fideicomiso
Financiero Colcar Serie I, to be issued by TMF Trust Company
(Argentina) S.A. - acting solely in its capacity as Issuer and
Trustee.
As of June 14, 2016, the securities for this transaction have not
yet been placed in the market. Additionally, this transaction is
pending the approval from the regulator (Comision Nacional de
Valores). If any assumption or factor Moody's considers when
assigning the ratings change before closing, the ratings may also
change.
ISSUANCE: Fideicomiso Financiero Colcar Serie I
Moody's has withdrawn the ratings of the VRDA, VRDB and the
Certificates because the structure of the transaction has changed
before issuance and as a result the rating of B3 (sf) / Baa2.ar
(sf) for the VRDA, Caa3 (sf) / Caa2.ar (sf) for the VRDB and Ca
(sf) / Ca.ar (sf) for the Certificates will change. Moody's has
assigned new ratings to these tranches as:
-- VRDA: assigned A2.ar (sf) (national scale) and B2 (sf)
(global scale)
-- VRDB: assigned Caa1.ar (sf) (national scale) and Caa3 (sf)
(global scale)
-- VRDC: currently rated Ca.ar (sf) (national scale) and
Ca (sf) (global scale)
-- CP: assigned C.ar (sf) (national scale) and C (sf) (global
scale)
The transaction will be backed by an amortizing pool of closed-end
savings plans (planes de ahorro) and loans for the acquisition of
chassis for Mercedes Benz' vehicles. The loans have been
originated by Colcar Merbus S.A. (NR) and the saving plans by
Colservice S.A. de Ahorro para Fines Determinados (NR). Colcar
Merbus is the largest dealer of Mercedes Benz buses in Argentina.
The receivables are backed by a first-priority security interest
on the vehicles.
RATINGS RATIONALE
The ratings are based mainly on these factors:
-- The available credit enhancement in the transaction, as an
initial subordination of 39.1% for the VRDA, 38.6% for the
VRDB, 32.6% for VRDC and 19.4% for the CP (calculated over
the nominal amounts of loans assigned to the trust). In
addition the transaction benefits from reserve funds.
-- The value of the collateral, represented by receivables
related to 104 closed-end savings plans and 11 loans with a
current weighted average LTV of approximately 34.9%.
-- The ability of TMF Trust Company (Argentina) S.A. to act as
trustee.
-- The first-priority security interest on the Mercedes Benz
buses and trucks.
-- The ability of Colservice to act as primary servicer in the
transaction.
-- The availability of several reserve funds.
-- The concentrated nature of the obligors in the pool, that
mainly consists of small and medium sized companies in the
transportation industry.
Colcar and Colservice, acting as sellers, will assign fixed
installments related to closed-end saving plans and loans to
finance the purchase of chassis new or used Mercedes Benz buses
and trucks. Moody's notes that the pool is highly concentrated in
the public transportation and tourism industry in Argentina. A
negative economic environment affecting these sectors may impact a
large number of securitized receivables. The pool is highly
concentrated by borrower, as the 115 receivables included in the
transaction correspond to borrowers of 69 economic groups. Also,
the top 10 borrowers represent 36.5% of the original pool balance.
This risk is mitigated by: 1) the low average loan CLTV of 34.9%,
2) the fact that the vehicles backing the securitized receivables
are, in general, a key component of the borrower's working
capital, which is expected to have a lower probability of default
in comparison with other company obligations, 3) the historical
performance of similar pools and the initial subordination which
will increase over time due to a turbo-sequential payment
structure. Moody's modeled the effect of the concentration in the
pool performance and stressed the pool's default rate
significantly above the historical observed default rates of
similar portfolios. These concentrations result in potential high
rating volatility.
Moody's considered the credit enhancement provided in this
transaction through the initial subordination levels for each
rated class, as well as the historical performance of similar
portfolios and previous transactions. In addition, Moody's
considered factors common to equipment financing securitizations
such as obligor concentration levels, delinquencies, prepayments
and losses; as well as specific factors related to the Argentine
market, such as the probability of an increase in losses if there
are changes in the macroeconomic scenario in Argentina.
To determine the rating assigned to the tranches, Moody's has used
an expected loss methodology that reflects the probability of
default for each tranche times the severity of the loss expected
for the securities. For rating this transaction Moody's used two
models: CDOROM and ABSROM. Moody's used CDOROM to derive the
default distribution applicable to this transaction. The Moody's
CDOROM model is a Monte Carlo simulation which takes borrower
specific Moody's default probabilities as input. In order to
allocate losses to the securities in accordance with their
priority of payment and relative size, Moody's has used a cash-
flow model (ABSROM) that reproduces many deal-specific
characteristics: the main input parameters of the model are
described below. Weighting each loss scenario's severity result
on the tranches with its probability of occurrence, the model has
calculated the expected loss level for each series. Moody's model
then compares the quantitative values to the Moody's Idealized
Expected Loss table for each tranche.
Stress Scenarios:
In assigning the rating to this transaction, Moody's assumed a
Caa2 rating for obligors related to public transportation and a
Caa3 for the rest of the obligors to determine the default
definition in CDOROM. Also, Moody's assumed a lognormal
distribution for recoveries with a 40% mean and a 50% coefficient
of variation. These assumptions are derived from the historical
performance of similar portfolios originated by Colcar and
Colservice.
The model results showed 4.2% expected loss for VRDA, 19.2%
expected loss for VRDB, 43.7% for VRDC, and 79.1% for the CP.
Parameter sensitivities provide a quantitative, model-indicated
calculation of the number of notches that a Moody's-rated
structured finance security may vary if certain input parameters
used in the initial rating process differed. The analysis assumes
that the deal has not aged. It is not intended to measure how the
rating of the security might migrate over time, but rather, how
the initial rating of the security might differ as certain key
parameters vary.
Moody's ran parameter sensitivities applying an assumed rating of
Caa3 for all obligors. Under this parameter sensitivity, the
global scale ratings of the VRDA would be downgraded to Caa2 (sf).
The ratings for VRDB would be downgraded to Ca (sf). However, the
ratings for the VRDC and residual class would remain unchanged
considering no changes in the mean recovery rate.
Colservice is a company of the Colcar Group and was constituted in
2006 to originate closed-end saving plans for the purchase of
Mercedes-Benz buses. Colcar is the largest Mercedes-Benz dealer
in Argentina. Colcar is also the largest seller of chassis of
buses used for public transportation in Argentina. The company is
divided in six business lines: buses, commercial vehicles, cars,
equipment, services and spare parts. Moody's believes that
Colservice's origination and servicing practices are adequate.
Colservice is regulated by the Inspecci¢n General de Justicia in
Argentina and received periodic audits of procedures from
Mercedes-Benz.
PROVIDENCIA COM. ARGENTINA: Moody's Withdraws B3 IFS Rating
-----------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo S.A.
(Moody's) has withdrawn the B3 global local currency and Baa3.ar
Argentine national scale insurance financial strength (IFS)
ratings of Providencia Com. Argentina de Seguros S.A. At the time
of the withdrawal the ratings' outlook was negative.
SANTA FE PROVINCE: Moody's Assigns B3 First Time Issuer Rating
--------------------------------------------------------------
Moody's Investors Service has assigned a first time issuer rating
of B3 (Global Scale, foreign currency) to the Province of Santa
Fe. The rating outlook is stable.
RATING RATIONALE
The B3 issuer rating assigned to the Province of Santa Fe reflects
a strong local economy, the province's low debt levels --both
current and expected- and relatively stable operating performance.
Santa Fe's debt to total revenues averaged just 3.5% during 2010-
2015 period and while debt could grow to represent up to 15% of
total revenues in the coming years, it will remain low compared to
peers.
The diversification of Santa Fe's economy is also a key credit
strength. Real estate services account for 24% of the provincial
GDP in 2015, followed by manufacturing 19%, commerce 16% and
agriculture 9%. Santa Fe's per capita GDP stays at around the
national average.
Santa Fe reported consistent although relatively low gross
operating surpluses during 2010-2015, with an average of 1.7% of
current revenues. The province has characterized itself by a
prudent management of personnel costs, which only averaged 43% of
the province current revenues compared to between 50% and 60% in
the case of other local peers. Federal transfers represent about
51% of total revenues.
Santa Fe's credit challenges include a track record of posting
cash financing deficits that averaged 2.6% during 2010-2015.
Moody's also anticipates that the provincial debt will expand and
will be mostly denominated in dollars which will expose the
province to currency mismatch.
The assigned issuer rating also reflects the weak operating
environment in Argentina. The intrinsic financial characteristics
of the Province of Santa Fe are constrained by the lack of a
consistent track record of implementing predictable policies at
the national level which affects the institutional framework under
which the province operates and, in Moody's view, anchors its
credit quality to that of the Sovereign.
Regarding Santa Fe's outlook, it is stable in line with the stable
outlook of the Argentine sovereign bonds ratings.
WHAT COULD CHANGE THE RATINGS UP/DOWN
Given the strong macroeconomic and financial linkages between the
sovereign and sub-sovereign entities, an upgrade or an outlook
change to positive of Argentina's sovereign bonds ratings could
lead to an upgrade or to an outlook change of the Province of
Santa Fe ratings. Conversely, a downgrade in Argentina's bond
ratings or outlook change to negative and/or deterioration in the
idiosyncratic risk profile arising in this Province could exert
downward pressure on the ratings and could translate into a
downgrade.
The principal methodology used in this rating was Regional and
Local Governments published in January 2013.
=============
B O L I V I A
=============
BISA LEASING: Moody's Assigns Ba3 GS Rating to US$4MM Issuance
--------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo assigned a
Ba3 global scale rating and a Aaa.bo national scale rating to Bisa
Leasing S.A.'s third expected issuance of US$4 million under Bisa
Leasing's senior debt program of up to US$40 million (Programa de
Emisiones de Bonos Bisa Leasing IV). The outlook for the global
scale rating is negative, while the national scale rating carries
a stable outlook.
These ratings were assigned to Bisa Leasing S.A. expected
issuance:
Expected issuance of US$4 million:
Global Foreign-Currency Debt Rating: Ba3, negative outlook
Bolivian National Scale Foreign -Currency Debt Rating: Aaa.bo,
stable outlook
RATINGS RATIONALE
Bisa Leasing's debt ratings derive from its b1 standalone credit
assessment and incorporates one notch of uplift due to Moody's
assumption of a very high probability of support from its parent,
Banco BISA S.A. (local currency bank deposits rated Ba3 with
negative outlook). Bisa Leasing's negative outlook is in line
with the negative outlook on the ratings of its parent and the
Bolivian sovereign.
The stand-alone credit profile reflects Bisa Leasing's limited
income diversification as a result of its narrow focus on leasing
and leaseback of machinery and equipment, its low liquidity
ratios, and its heavy reliance on market funding, including both
bonds issuances and interbank deposits, which exposes it to
refinancing and interest rate risk. These risks are partly offset
by the company's well-established franchise in the developing
leasing industry in Bolivia, healthy asset quality and
capitalization metrics, and good profitability indicators.
The ratings could face downward pressure if Banco BISA's bank's
business prospects, asset quality, profitability and/or
capitalization decline due to a deterioration in Bolivia's
operating environment.
Headquartered in La Paz, Bolivia, Bisa Leasing is the leading
leasing company in the country, with assets of Bs. 378 million and
shareholders' equity of Bs. 43 million as of March 31, 2016.
BISA SEGUROS: Moody's Affirms Ba3/Aaa.bo GLC and NS IFS Ratings
---------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has
affirmed the global local currency (GLC) and national scale (NS)
insurance financial strength (IFS) ratings of 4 Bolivian insurers,
all with stable outlooks. Ratings and outlooks of the other 11
rated insurers are not affected.
This rating action follows Moody's Investors Service's outlook
change, effective June 10, 2016, to negative, from stable, on
Bolivia's local-currency and foreign-currency Ba3 sovereign bond
ratings.
RATINGS RATIONALE
According to Moody's, the affirmation and stable outlook on these
4 Bolivian insurers - whose ratings are currently at the level of
the sovereign - reflects Moody's assessment that a potential
future downgrade of Bolivia's sovereign bond rating, by itself,
would not likely put significant downward pressure on these
insurers' credit profiles. Moody's notes that even taking into
consideration these insurers' considerable investment
concentration in the sovereign debt, they broadly benefit from
very modest reliance on debt funding and financing, and their
liquidity positions are relatively strong, given stable premium
revenue streams and the relative lack of credit-sensitivity of
insurance premiums broadly. These insurers' credit profiles also
benefit from their profitability and from internal capital
generation that derives largely from their insurance underwriting
operations, as well as investment activities. These
considerations broadly support Moody's assessment that their
financial strength ratings would still be well positioned at their
current Ba3 level in the event of a downgrade of the sovereign to
B1. The rating agency went on to say that there is no downward
pressure on the IFS ratings of the other 11 insurers rated in
Bolivia, as all of them are currently rated below the sovereign.
These 4 insurers' GLC and NS IFS ratings were affirmed with stable
outlooks:
-- Bisa Seguros y Reaseguros: Ba3/Aaa.bo
-- BUPA Insurance (Bolivia): Ba3/Aaa.bo
-- La Boliviana Ciacruz Seguros y Reaseguros: Ba3/Aa1.bo
-- La Boliviana Ciacruz Seguros Personales: Ba3/Aa1.bo
Among the factors that could lead to a rating downgrade for the 4
above mentioned insurers are: 1) a multi-notch downgrade of the
Bolivian sovereign bond rating; 2) deterioration of the country's
insurance operating environment; and/or 3) impairment in
companies' asset quality, profitability or capital adequacy.
Conversely, factors that could lead to an upgrade include improved
capital adequacy and profitability metrics for insurers, as well
as an improvement in Bolivia's operating environment and/or
sovereign bond's rating.
The principal methodology used in rating Bisa Seguros y
Reaseguros, BUPA Insurance (Bolivia), and La Boliviana Ciacruz
Seguros y Reaseguros was Global Property and Casualty Insurers
published in June 2016. The principal methodology used in rating
La Boliviana Ciacruz Seguros Personales was Global Life Insurers
published in April 2016.
Moody's National Scale Credit Ratings (NSRs) are intended as
relative measures of creditworthiness among debt issues and
issuers within a country, enabling market participants to better
differentiate relative risks. NSRs differ from Moody's global
scale credit ratings in that they are not globally comparable with
the full universe of Moody's rated entities, but only with NSRs
for other rated debt issues and issuers within the same country.
NSRs are designated by a ".nn" country modifier signifying the
relevant country, as in ".za" for South Africa. While NSRs have
no inherent absolute meaning in terms of default risk or expected
loss, a historical probability of default consistent with a given
NSR can be inferred from the GSR to which it maps back at that
particular point in time. For information on the historical
default rates associated with different global scale rating
categories over different investment horizons, please see:
https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_
189530
YPFB TRANSIERRA: Moody's Changes Outlook to Neg; Ba3 CFR Affirmed
-----------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo S.A. has
changed the rating outlooks to negative and affirmed the current
ratings on its rated infrastructure companies operating in
Bolivia. The outlook change for the affected companies follows
the revision of Bolivian government's Ba3 issuer rating outlook to
negative from stable on June 10, 2016, and reflects the exposure
and linkages that these companies have to the Bolivian government
credit quality.
RATINGS RATIONALE
Moody's changed the rating outlook to negative from stable and
affirmed the current ratings on its rated infrastructure companies
operating in Bolivia. The outlook change for the affected
companies follows the outlook change of Bolivia's Ba3 issuer
rating outlook to negative from stable on June 10, 2016, and
reflects the exposure and linkages that these companies have to
the Bolivian government credit quality.
The negative outlook for the affected issuers reflects Moody's
view that the creditworthiness of these companies cannot be
completely de-linked from the credit quality of the Bolivian
government, and thus their ratings need to closely reflect the
risk that they share with the sovereign.
Particularly, the negative outlook considers that the affected
companies are regulated concessions, subject to regulated tariffs
and local economic conditions.
Moody's notes that a further rating downgrade of the sovereign
would likely result in negative rating actions for the affected
issuers in this action, even in the absence of any significant
change in their underlying credit quality.
ISSUERS AND RATINGS AFFECTED
Issuer: YPFB Transierra S.A. (Transierra)
Corporate Family Rating, Senior Unsecured Regular Bond/Debenture
2020 and Senior Unsecured Regular Bond/Debenture 2023: Ba3 global
scale and Aa2.bo national scale ratings affirmed, outlook changed
to negative from stable
Issuer: Distribuidora de Electricidad La Paz S.A. (Delapaz)
Corporate Family Rating and Senior Unsecured Regular Bond: Ba3
global scale and Aa1.bo national scale ratings affirmed, outlook
changed to negative from stable
The principal methodology used in rating Distribuidora de
Electricidad La Paz S.A. was Regulated Electric and Gas Utilities
published in December 2013. The principal methodology used in
rating YPFB Transierra S.A. was Natural Gas Pipelines published in
November 2012.
Moody's National Scale Credit Ratings (NSRs) are intended as
relative measures of creditworthiness among debt issues and
issuers within a country, enabling market participants to better
differentiate relative risks. NSRs differ from Moody's global
scale credit ratings in that they are not globally comparable with
the full universe of Moody's rated entities, but only with NSRs
for other rated debt issues and issuers within the same country.
NSRs are designated by a ".nn" country modifier signifying the
relevant country, as in ".za" for South Africa.
While NSRs have no inherent absolute meaning in terms of default
risk or expected loss, a historical probability of default
consistent with a given NSR can be inferred from the GSR to which
it maps back at that particular point in time. For information on
the historical default rates associated with different global
scale rating categories over different investment horizons, please
see:
https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_
189530
===========
B R A Z I L
===========
BANCO DO ESTADO: S&P Puts 'BB' LT GS Rating on CreditWatch Neg.
---------------------------------------------------------------
S&P Global Ratings placed its 'BB' long-term global-scale rating
and its 'brA+' national-scale rating on Banco do Estado do Rio
Grande do Sul (Banrisul) on CreditWatch negative, with the
potential for a multiple notch downgrade.
S&P classifies Banrisul as a government-related entity (GRE) with
a limited link to the government, which stems from uncertainty
about the government's capacity to support GREs. S&P believes the
bank has limited importance to the government, given that it's a
profit-seeking enterprise whose public services role could be
eventually undertaken by another entity. Up to that point, S&P
believes that the bank's controlling shareholder, the government
of Rio Grande do Sul, has a limited ability to use the bank as a
financing vehicle, given that the bank must comply with Central
Bank requirements, the Fiscal Responsibility Law, and any
additional requirements set by the National Treasury, limiting
transactions with the state.
The ratings on Banrisul also reflect its adequate business
position, which stems from its strong market presence in the State
of Rio Grande do Sul and brand recognition. The ratings account
for its moderate capital and earnings--due to a projected risk-
adjusted capital (RAC) ratio of 6.0%--its moderate risk position--
given its weakening asset quality metrics -- and its above average
funding and adequate liquidity.
The negative implications of the CreditWatch listing on Banrisul
reflects S&P's view that the offer to buy the payroll rights may
impact the bank's business position, capital position, or S&P's
view that the government has a limited ability to use the bank as
a financing vehicle. S&P may take a negative rating action if the
acquisition jeopardizes the bank's capital position and if S&P's
projected RAC ratio drops below 5% after deducting the intangibles
generated in the transaction. Additionally, S&P could revise its
business position score due to a negative management intervention
or S&P may change its view that the bank has a limited ability to
use the bank as a financing vehicle, depending on the terms of the
contract, the transparency of the transaction and if the price
paid reflects premiums to tangible book value of the payroll
rights.
S&P aims to resolve the CreditWatch listing within the next 90
days once the operation is concluded.
BRAZIL: Outgoing Central Bank Sees Growth But No Room to Cut Rate
-----------------------------------------------------------------
Mario Sergio Lima at Bloomberg News reports that Brazil's outgoing
central bank board sees no room for bringing down one of the
highest benchmark interest rates in the world even as it forecasts
Latin America's largest economy to accelerate in coming months.
In the minutes to its June 7-8 rate decision, the board used
language from previous statements in which it recognizes advances
in combating inflation and foresees the economy picking up, but
considers that high inflation and expectations above target "don't
offer room for more flexible monetary policy," according to
Bloomberg News.
The central bank board, led for the last time by Alexandre
Tombini, kept the benchmark interest rate unchanged at 14.25
percent for the seventh-straight gathering last week, as forecast
by all 41 analysts surveyed by Bloomberg. Acting President Michel
Temer's nominee to replace Tombini, Massachusetts Institute of
Technology-trained economist Ilan Goldfajn took office, Bloomberg
News notes.
Analysts interpreted Tombini's stance as an attempt to smooth the
handover to Goldfajn, 50, who now inherits inflation running at
almost double digits and an economy projected to bounce back to 1
percent growth next year after the worst recession in decades,
Bloomberg News relates. In his first speech on the job, Goldfajn
pledged to hit the 4.5 percent center of the inflation target,
while nominating new members to the board that include academics
and a banker from the private sector, Bloomberg News notes. They
still need Senate confirmation.
The inflation target has eluded the central bank for the past six
years and will continue to do so this year and next, according to
analysts surveyed weekly by the central bank, Bloomberg News
relays. They see consumer prices rising 7.2 percent in 2016 and
5.5 percent in 2017, which would be the lowest year-end inflation
rate since 2009, Bloomberg News notes.
Temer's finance ministry has already announced proposals that may
help in the inflation fight, such as a cap on public spending that
must be approved by a two-thirds majority in Congress, Bloomberg
News says. The minister, Henrique Meirelles, says he's not
considering tax increases for now, 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.
HSBC BANK BRAZIL: Moody's Cuts Deposit Ratings to Ba2; Outlook Neg
------------------------------------------------------------------
Moody's Investors Service has downgraded HSBC Bank Brasil S.A.
Banco Multiplo's (HSBC Brazil) long- and short-term global local
currency deposit ratings to Ba2/Not Prime from Baa3/Prime-3, long-
term foreign currency senior unsecured debt rating to (P)Ba2 from
(P)Ba1, and long-term Brazilian national scale deposit rating to
Aa1.br from Aaa.br. Moody's also confirmed HSBC Brazil's baseline
credit assessment at ba2 and long-term foreign currency deposit
rating at Ba3. At the same time, Moody's affirmed the bank's Not
Prime short-term foreign currency deposit and debt rating , as
well as the BR-1 short-term Brazilian national scale deposit
rating. The adjusted BCA assigned to HSBC Brazil was lowered to
ba2, from baa3, as support from HSBC Holding (A1 Negative) is no
longer incorporated, following final regulatory approval to
complete the sale of its operations to Banco Bradesco S.A. The
outlook assigned to HSBC Brazil is negative.
Moody's also affirmed all ratings and assessments assigned to
Banco Bradesco S.A., including the BCA of ba2, the long-term
global local currency deposit, the long-term foreign currency
deposit; and the long-term Brazilian national scale deposit rating
of Aa1.br. All short-term ratings assigned to Bradesco were also
affirmed. In addition, Moody's affirmed all ratings assigned to
Banco Bradesco S.A. Grand Cayman Branch, including the debt
ratings of Ba2 and Ba3 assigned to foreign currency senior
unsecured and subordinated debts, respectively. As well as the
counterparty risk assessments of Ba1(cr)/Not Prime(cr) assigned to
both Banco Bradesco and Banco Bradesco Cayman Branch. These
ratings remain on negative outlook.
This concludes the review of HSBC Brazil's ratings started on
Aug. 5, 2015, when the transaction was announced.
These assessments and ratings of HSBC Brazil were confirmed:
Baseline credit assessment of ba2
Long-term foreign currency deposit rating of Ba3, with negative
outlook
These ratings of HSBC Brazil were affirmed:
Short-term foreign currency deposit rating of Not Prime
Short-term foreign currency senior unsecured debt rating,
assigned to GMTN Program, of (P)Not Prime
Short-term Brazilian national scale deposit rating at BR-1
These assessments and ratings of HSBC Brazil were downgraded:
Adjusted baseline credit assessment: to ba2, from baa3
Long-term local currency deposit rating: to Ba2, from Baa3,
negative outlook
Short-term local currency deposit rating: to Not Prime, from
Prime-3
Long-term foreign currency senior unsecured debt rating,
assigned to GMTN Program: to (P)Ba2, from (P)Ba1
Long-term Brazilian national scale deposit rating: to Aa1.br,
from Aaa.br
Long-term counterparty risk assessment: to Ba1(cr), from
Baa2(cr)
Short-term counterparty risk assessment: to Not Prime(cr) of
Prime-2(cr)
These ratings and assessments assigned to Banco Bradesco S.A. were
affirmed:
Baseline credit assessment of ba2
Adjusted credit assessment of ba2
Long-term local currency deposit rating of Ba2, with negative
outlook
Short-term local currency deposit rating of Not Prime
Long-term foreign currency deposit rating of Ba3, with negative
outlook
Short-term foreign currency deposit rating of Not Prime
Long-term foreign currency senior unsecured MTN rating of (P)Ba2
Long-term Brazilian national scale deposit ratings of Aa1.br
Short-term Brazilian national scale deposit ratings of BR-1
Long-term counterparty risk assessment of Ba1(cr)
Short-term counterparty risk assessment of Not Prime(cr)
These ratings and assessments assigned to Banco Bradesco S.A.
Grand Cayman Branch were affirmed:
Long-term foreign currency senior unsecured MTN rating of (P)Ba2
Long-term foreign currency senior unsecured debt rating of Ba2,
with negative outlook
Foreign currency subordinated unsecured debt rating of Ba3
Long-term counterparty risk assessment of Ba1(cr)
Short-term counterparty risk assessment of Not Prime(cr)
RATINGS RATIONALE
HSBC BRAZIL
The conclusion of the review and the multi-notch downgrade of HSBC
Brazil's supported ratings follows final regulators' approval of
Bradesco's acquisition of HSBC's operations in Brazil on June 8,
2016. Consequently, HSBC Brazil will no longer benefit from
support from its previous parent, HSBC Holdings (A1 negative).
While the franchise will benefit from support from Bradesco from
now on, given that its BCA is the same as Bradesco's, its debt and
deposit ratings will no longer receive any uplift. Consequently,
HSBC Brazil's debt and deposit ratings have been lowered to the
same level as its BCA.
In confirming HSBC Brazil's standalone BCA of ba2, Moody's note
that the bank will continue to exist as a full subsidiary of
Bradesco with its current assets and liabilities subject to
Bradesco's direct control and risk management policies, until all
assets and liabilities are fully absorbed by Bradesco, which is
expected to occurred during the fourth quarter. The negative
outlook on HSBC Brazil reflects the negative outlook on Bradesco,
which in turn reflects the negative outlook on the Brazilian
sovereign.
BANCO BRADESCO
The affirmation of Bradesco's ratings reflects the constraint on
the bank's BCA by Brazil's sovereign bond rating of Ba2. Although
the acquisition is expected to result in a significant decline in
Bradesco's capital position of more than 250 basis points under
Moody's metrics, due to the large amount of goodwill that will be
generated, the bank's BCA will nevertheless remain constrained by
Brazil's sovereign rating. The transaction will also increase
Bradesco's market share of deposits and assets, closing the gap
with Itau Unibanco S.A. (Ba2 negative, ba2), the largest private
bank in Brazil. According to Moody's analyst Ceres Lisboa, "the
acquisition will enhance Bradesco's position in the highly
competitive and fee-based business segment oriented to high-income
individuals. Bradesco will be able to leverage from its wide
banking and insurance platform to explore cross-selling
opportunities and support earnings growth".
Over the next 12 months, however, slower loan growth and rising
credit costs together with higher operating costs related to the
acquisition are expected to drive a continued decline in
Bradesco's profitability and efficiency. HSBC Brazil has reported
negative bottom line results in the last two years due in part to
its very high operating expenses. While Bradesco is expected to
be able to realize significant cost savings, cost and revenues
synergies will take at least three years to fully achieve.
Nevertheless, Moody's expects earnings will remain sufficient to
allow Bradesco to restore its capital within six to eight quarters
given its long-track record of capital retention.
FACTORS THAT COULD LEAD TO A DOWNGRADE
As Bradesco's deposit and debt ratings are currently constrained
by Brazil's sovereign bond rating of Ba2, the bank's ratings have
a negative outlook in line with the negative outlook on the
sovereign rating. Consequently, the bank's ratings will face
downward pressure if the sovereign is downgraded.
Bradesco's BCA could be downgraded if the bank experiences a
material deterioration in recurring earnings generation triggered
by unexpected losses, or by a prolonged recession. Failure to
achieve expected cost and earnings synergies that limits the
bank's ability to restore its capital levels over the next 12 to
18 months would also put downward pressure on the BCA. However, a
downgrade of the bank's BCA would not be likely to affect its debt
and deposit ratings given the high probability of government
financial support should the bank face financial stress.
Given the negative outlook and Brazil's deep ongoing economic
recession, upward pressure is unlikely in the near to medium term.
However, the outlook could stabilize if and when the government
outlook stabilizes.
METHODOLOGIES & LAST RATING ACTION
The principal methodology used in these ratings was Banks
published in January 2016.
Moody's National Scale Credit Ratings (NSRs) are intended as
relative measures of creditworthiness among debt issues and
issuers within a country, enabling market participants to better
differentiate relative risks. NSRs differ from Moody's global
scale credit ratings in that they are not globally comparable with
the full universe of Moody's rated entities, but only with NSRs
for other rated debt issues and issuers within the same country.
NSRs are designated by a ".nn" country modifier signifying the
relevant country, as in ".za" for South Africa.
While NSRs have no inherent absolute meaning in terms of default
risk or expected loss, a historical probability of default
consistent with a given NSR can be inferred from the GSR to which
it maps back at that particular point in time. For information on
the historical default rates associated with different global
scale rating categories over different investment horizons, please
see:
https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_
189530
The last rating action on Banco Bradesco S.A. was on May 11, 2016,
when Moody's repositioned the bank's long-term Brazilian national
scale rating at Aa1.br, in view of the recalibration of the
national rating scale methodology. All other ratings remained
unchanged.
The last rating action on HSBC Bank Brasil S.A. was on May 11,
2016, when Moody's repositioned the bank's long-term Brazilian
national scale rating at Aaa.br, in view of the recalibration of
the national rating scale methodology. At the same time, Moody's
placed on review for downgrade the Aaa.br national scale rating,
in line with the review for downgrade on the bank's global scale
deposit rating. All other ratings remained unchanged.
Banco Bradesco is headquartered in Sao Paulo, Brazil. The bank
reported total consolidated assets of BRL1,024 billion
($288.9 billion) and equity of BRL93.3 billion ($26.33 billion) as
of March 31, 2016.
HSBC Bank Brasil -- Banco Multiplo S.A. is headquartered in
Curitiba, Brazil. The bank reported total consolidated assets of
BRL175 billion ($49.4 billion) and equity of BRL8.74 billion
($2.25 billion) as of Dec. 31, 2015.
TRX SECURITIZADORA: Moody's Cuts Global Scale Rating to Ba1(sf)
---------------------------------------------------------------
Moody's America Latina Ltda. has downgraded to Ba1 (sf) from Baa3
(sf) (global scale, local currency) and affirmed the Aaa.br (sf)
(national scale) ratings of the 12th series of the first issuance
of real estate certificates (certificados de recebiveis
imobiliarios, or CRI) issued by TRX Securitizadora S.A. (TRX, not
rated).
This rating action follows Moody's conclusion of the review and
downgrade of the Counterparty Risk Assessment (CR Assessment) of
HSBC Bank Brasil S.A. -- Banco Multiplo (HSBC Brazil, Ba1(cr)), as
guarantor under the sub-lease, on 14 June 2016, following the
final regulatory approval to complete the sale of its operations
to Banco Bradesco S.A. (Bradesco).
The complete rating action is as follows:
Issuer: TRX Securitizadora S.A.
12th series, first issuance CRI: Downgraded to Ba1 (sf) from Baa3
(sf) (global scale, local currency) and affirmed Aaa.br (sf)
(national scale)
The CRI are backed by a real estate credit note (cÇdula de
crÇditos imobili†rios, or CCI) that is supported by sublease
payments by Teleperformance CRM S.A. (Teleperformance, not rated)
on a 10-year built-to-suit (BTS) sublease agreement of a call
center in Parnamirim - RN. HSBC Brasil provides a financial
guarantee to cover for the sublease payments by Teleperformance
and any indemnification under the sublease agreement. The sublease
agreement determines that a termination of the contract will
require Teleperformance, supported by the guarantee, to pay the
remaining outstanding lease payments under the contract. The
guarantee will be renewed annually. In case Teleperformance fails
to provide a renewed guarantee 25 days before the expiration date
of the then outstanding guarantee, there will be an early
termination of sublease agreement and Teleperformance will have to
pay an indemnification equivalent to all remaining lease payments.
This payment is covered by HSBC Brazil's financial guarantee.
RATINGS RATIONALE
The ratings assigned to the CRI are based mainly on the
willingness and ability of HSBC Brazil (as guarantor) to honor the
financial guarantee on lease payments defined in the transaction
documents. Any change in HSBC Brazil's CR Assessment during the
life of the transaction or a change in the guarantor could lead to
a change in the ratings of the CRI.
The conclusion of the review and the downgrade of HSBC Brazil's
supported ratings and CR Assessment follows final regulators'
approval of Bradesco's acquisition of HSBC's operations in Brazil
on June 8th 2016. Consequently, HSBC Brazil will no longer benefit
from support from its previous parent, HSBC Holdings (A1
negative). While the franchise will benefit from support from
Bradesco from now on, given that its baseline credit assessment
(BCA) is the same as Bradesco's, its ratings will no longer
receive any uplift.
Factors that would lead to an upgrade or downgrade of the ratings:
Any changes in the CR Assessment of HSBC Brazil or a change in the
guarantor could lead to a change in the ratings on the CRI.
==========================
C A Y M A N I S L A N D S
==========================
ACMAN FUND: Shareholders' Final Meeting Set for July 13
-------------------------------------------------------
The shareholders of Acman Fund Limited will hold their final
meeting on July 13, 2016, at 9:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Neil Montgomery Cathlin Rossiter
c/o Genesis Trust & Corporate Services Ltd.
2nd Floor Elgin Court Elgin Avenue
George Town Grand Cayman
Cayman Islands KY1-1106
Telephone: (345) 945 3466
Facsimile: (345) 945 3470
APOGEE FUND: Commences Liquidation Proceedings
----------------------------------------------
On May 17, 2016, the sole shareholder of The Apogee 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 liquidators are:
David Sargison
P.O. Box 414 31 Woodland Drive, Savannah
Grand Cayman, KY1-1502
Cayman Islands; and
Vijayabalan Murugesu
c/o Premier Fiduciary Services (Cayman) Ltd.
P.O. Box 30100 Ground Floor
Windward 1 Regatta Office Park
West Bay Road Grand Cayman KY1-1201
Cayman Islands
BERKELEY HANOVER: Creditors' Proofs of Debt Due June 17
-------------------------------------------------------
The creditors of Berkeley Hanover Inc. are required to file their
proofs of debt by June 17, 2016, to be included in the company's
dividend distribution.
The company commenced liquidation proceedings on May 26, 2016.
The company's liquidator is:
Michael Pearson
Trudy-Ann Scott
Fund Solution Services Limited
Harbour Centre, 2nd Floor
42 North Church Street
George Town Grand Cayman
10 Market Street, #769, Camana Bay
Grand Cayman KY1-9006
Cayman Islands
Telephone: +1 (345) 947 5855
BOW STREET: Commences Liquidation Proceedings
---------------------------------------------
On April 20, 2016, the shareholder of Bow Street Offshore Fund,
resolved to voluntarily liquidate the company's business.
The company's liquidator is:
Ogier
Bow Street LLC
c/o Sophia Leavett
89 Nexus Way, Camana Bay Grand Cayman KY1-9007
Cayman Islands
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949-9877
CAMIF ASSOCIATES: Creditors' Proofs of Debt Due June 27
-------------------------------------------------------
The creditors of Camif Associates Ltd. are required to file their
proofs of debt by debt June 27, 2016, to be included in the
company's dividend distribution.
The shareholders will hold their final meeting on June 28, 2016,
at 9:00 a.m., to receive the liquidator's report on the company's
wind-up proceedings and property disposal.
The company commenced wind-up proceedings on May 26, 2016.
The company's liquidator is:
Stuarts Walker Hersant Humphries
P.O. Box 2510 Grand Cayman KY1-1104
Cayman Islands
Telephone: (345) 949 3344
Facsimile: (345) 949 2888
HERRING CREEK: Placed Under Voluntary Wind-Up
---------------------------------------------
On May 27, 2016, the sole shareholder of Herring Creek Offshore
Fund, Ltd. resolved to voluntarily wind up the company's
operations.
Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.
The company's liquidator is:
Herring Creek Capital Management, LLC
c/o Joanne Huckle
Ogier 89 Nexus Way
Camana Bay Grand Cayman KY1-9009
Cayman Islands
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949-9877
SATELLITE OVERSEAS: Commences Liquidation Proceedings
-----------------------------------------------------
On May 17, 2016, the sole shareholder of Satellite Overseas 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 liquidators are:
David Sargison
P.O. Box 414 31 Woodland Drive, Savannah
Grand Cayman, KY1-1502
Cayman Islands; and
Vijayabalan Murugesu
c/o Premier Fiduciary Services (Cayman) Ltd.
P.O. Box 30100 Ground Floor
Windward 1 Regatta Office Park
West Bay Road Grand Cayman KY1-1201
Cayman Islands
SATELLITE OVERSEAS V: Commences Liquidation Proceedings
-------------------------------------------------------
On May 17, 2016, the sole shareholder of Satellite Overseas Fund
V, 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 liquidators are:
David Sargison
P.O. Box 414 31 Woodland Drive, Savannah
Grand Cayman, KY1-1502
Cayman Islands; and
Vijayabalan Murugesu
c/o Premier Fiduciary Services (Cayman) Ltd.
P.O. Box 30100 Ground Floor
Windward 1 Regatta Office Park
West Bay Road Grand Cayman KY1-1201
Cayman Islands
SATELLITE OVERSEAS VI: Commences Liquidation Proceedings
--------------------------------------------------------
On May 17, 2016, the sole shareholder of Satellite Overseas Fund
VI, 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 liquidators are:
David Sargison
P.O. Box 414 31 Woodland Drive, Savannah
Grand Cayman, KY1-1502
Cayman Islands; and
Vijayabalan Murugesu
c/o Premier Fiduciary Services (Cayman) Ltd.
P.O. Box 30100 Ground Floor
Windward 1 Regatta Office Park
West Bay Road Grand Cayman KY1-1201
Cayman Islands
SATELLITE OVERSEAS IX: Commences Liquidation Proceedings
--------------------------------------------------------
On May 17, 2016, the sole shareholder of Satellite Overseas Fund
IX, 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 liquidators are:
David Sargison
P.O. Box 414 31 Woodland Drive, Savannah
Grand Cayman, KY1-1502
Cayman Islands; and
Vijayabalan Murugesu
c/o Premier Fiduciary Services (Cayman) Ltd.
P.O. Box 30100 Ground Floor
Windward 1 Regatta Office Park
West Bay Road Grand Cayman KY1-1201
Cayman Islands
UCGP (F): Commences Liquidation Proceedings
-------------------------------------------
On May 19, 2016, the sole shareholder of UCGP (F) 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
WILTSHIRE CAPITAL: Commences Liquidation Proceedings
----------------------------------------------------
On May 19, 2016, the sole shareholder of Wiltshire Capital 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:
Walkers Liquidations Limited
Cayman Corporate Centre
27 Hospital Road, George Town
Grand Cayman KY1-9008
Cayman Islands
Telephone: +1 (345) 949 0100
===================================
D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: Exports Plunge US$400MM on Haiti Border
-----------------------------------------------------------
Dominican Today reports that Dominican Republic's formal exports
to Haiti have plunged around US$400 million, on Port-au-Prince'
ban on 23 Dominican products, Industry and Commerce Minister Jose
del Castillo said.
Mr. del Castro said the decline occurred last year and the
situation has increased smuggling, according to Dominican Today.
"This type of action is what has contributed to a higher level of
informality in the business relationship and increased smuggling
at border points where transactions are made," the report quoted
Mr. del Castro as saying.
Mr. del Castro noted however that industrialists and merchants
have said they maintain the same sales levels, "revealing" a jump
in smuggling, the report notes.
"That was something we had foreseen. This control measure, this
ban of 23 products which can only go by sea, would cause an
increase in smuggling," the official said, the report relays.
Speaking with reporters in the National Palace, Mr. del Castillo
said there are points at the border where neither Haitian nor
Dominican authorities have absolute control, the report adds.
As reported in the Troubled Company Reporter-Latin America on
Dec. 3, 2015, Fitch Ratings affirmed the Dominican Republic's
long-term foreign and local currency Issuer Default Ratings (IDRs)
at 'B+'. The Rating Outlooks on the long-term IDRs are revised to
Positive from Stable. The issue ratings on the Dominican
Republic's senior unsecured foreign and local currency bonds are
affirmed at 'B+'. The Country Ceiling is affirmed at 'BB-' and the
short-term foreign currency IDR at 'B'.
DOMINICAN REPUBLIC: To Cleanup Major Gold Mine's Toxic Waste
------------------------------------------------------------
Dominican Today reports that the Energy and Mines Ministry and the
gold miner Barrick Pueblo Viejo agreed on a plan to mitigate
liabilities and the environmental cleanup of pollutants left by
the previous miner, Rosario Dominicana.
The announcement comes just one day after the Chamber of Deputies
asked the Environment Ministry to investigate the alleged
pollution at Hatillo dam and the Yuna river by the gold miner
Barrick Pueblo Viejo, near the city Cotui (central), according to
Dominican Today.
The report notes that mines minister Antonio Isa Conde and Barrick
Pueblo Viejo president Manuel Rocha signed the agreement, in
compliance with the provisions of the lease of the mining rights
at Barrick's site in central Sanchez Ramirez province.
Among the priorities figure the elimination of the dam that holds
the toxic residues at Mejita, where the retaining wall will be
shored up and the water drained, to eliminate environmental risks,
Isa said, stressing that the announced measures should have
started in 2009, but delayed due to extensive discussions and
studies required, the report notes.
"Let's remember that the mining rights lease agreement, as
amended, stipulates that the Dominican State is responsible for
managing and remediating the historical environmental issues
arising from the operation of the mine at Cotui since the time of
Rosario Dominicana," the report adds.
As reported in the Troubled Company Reporter-Latin America on
Dec. 3, 2015, Fitch Ratings affirmed the Dominican Republic's
long-term foreign and local currency Issuer Default Ratings (IDRs)
at 'B+'. The Rating Outlooks on the long-term IDRs are revised to
Positive from Stable. The issue ratings on the Dominican
Republic's senior unsecured foreign and local currency bonds are
affirmed at 'B+'. The Country Ceiling is affirmed at 'BB-' and the
short-term foreign currency IDR at 'B'.
===========
M E X I C O
===========
CUAUTITLAN IZCALLI: Moody's Affirms Ba3 GS Issuer Rating
--------------------------------------------------------
Moody's de Mexico affirmed Cuautitlan Izcalli's Ba3 issuer rating
(Global Scale, local currency) and changed the outlook to stable
from negative. At the same time, Moody's upgraded the issuer
rating to A3.mx from Baa1.mx (Mexico National Scale).
RATING RATIONALE
The affirmation of the Ba3 rating reflects Cuautitlan Izcalli's
solid level of own source revenues, moderate debt levels and
constraints due to contingencies related to the municipal water
company (OPERAGUA).
Cuatitlan Izcalli's own source revenues and net direct and
indirect debt to operating revenues of 39.0% and 23.1%,
respectively are in line with Ba3 Mexican peers. It's financial
position has strengthened significantly in recent years. In 2015,
the gross operating balance reached a maximum of 22.3% of
operating revenues from a very low -2.8% in 2011. The improvement
is explained by the solid own-source revenue performance and the
tight control of operating expenditures. Given cash financing
surpluses recorded, liquidity improved significantly, net working
capital to total expenditures reached a record high of 29.3% in
2015 from -10.9%% in 2011. This has been a significant improvement
and Moody's expect similar results in 2016.
Cuautitlan Izcalli makes regular transfers to its water company
(OPERAGUA) to cover historical debts with the National Water
Commission (CONAGUA) as well as with the Mexico's State Water
Commission (CAEM). In March 2016, these contingent liabilities
amounted MXN 594.5 million, or 31.6% of Cuautitlan Izcalli's total
revenues, and this constrains the ratings . Currently the
municipal administration is in the process of signing an agreement
with the OPERAGUA to diminish the transfers that the municipality
provides for these contingent debts.
Moody's said, "the change of outlook to stable from negative and
the upgrade of the National Scale rating to A3.mx reflects
Cuautitlan Izcalli's consistent improvements in gross operating
balances and liquidity and our expectation that these trends will
continue."
WHAT COULD CHANGE THE RATING UP/DOWN
The success of the municipality in reaching an agreement to
decrease its contingent liabilities and the maintenance of high
gross operating margins, liquidity and moderate debt levels could
lead to a rating upgrade.
If the positive observed trend on operating and consolidated
financial results is reversed, resulting in higher debt levels,
the ratings would face downward pressure. An increase in the
transfers that the municipality makes to the water company could
also exert downward pressure on the assigned ratings.
======================
P U E R T O R I C O
======================
FERRETERIA PALOMAS: Taps Orlando Loperena Lopez as Auditor
----------------------------------------------------------
Ferreteria Palomas Inc. seeks permission from the U.S. Bankruptcy
Court for the District of Puerto Rico to employ Orlando Loperena
Lopez as external auditor and business consultant.
The Accountant will:
a. assist the Debtor in preparing the Monthly Reports of
Operation;
b. prepare the necessary financial statements;
c. assist the Debtor in preparing the cash flow projections
and or any other projection needed for the Disclosure
Statement;
d. assist the Debtor in any or all financial and accounting
pertaining to, or in connection with the administration
of the estate;
e. assist the Debtor in the preparation and filing of
federal, state and municipal tax returns; and
f. assist the Debtor in any other assignment that might be
properly delegated by management.
The Accountant will be paid at these hourly rates:
Orlando Loperena Lopez $125
Associates $30
The Accountant assures the Court that the firm doesn't hold nor
represent any interest adverse to the estate of the Debtor, and is
a "disinterested person" as that term is defined in 11 U.S.C.
Section 101(14).
The Accountant can be reached at:
Orlando Loperena Lopez, M.B.A.
Calle 3-329 Ext. Marbella
Aguadilla, PR 00603
Tel: (787) 891-4218 & 891-5231
Ferreteria Palomas Inc. filed for Chapter 11 bankruptcy protection
(Bankr. D. P.R. Case No. 16-03644) on May 5, 2016. Gloria M.
Justiniano, Esq., Ensanche Martinez, Esq., and Calle A. Ramirez
Silva, Esq., at Justiniano Law Offices serve as the Debtor's
bankruptcy counsel.
KOMODIDAD DISTRIBUTORS: Seeks to Access FirstBank's Collateral
--------------------------------------------------------------
Komodidad Distibutors, Inc., and its affiliates seek authority
from the U.S. Bankruptcy Court to use cash collateral in the
ordinary course of business in an amount necessary to pay the
basic expenses and critical operational expenses.
The Debtors also seek a judicial determination that FirstBank
Puerto Rico is adequately protected due to the substantial equity
cushion the Debtors holds on account of the value of the real
property, the value of the rents received from the real estate
properties, inventory and accounts receivables, or in the
alternative, that it enters an order granting replacement liens in
the form of rental proceeds received each month subsequently,
which replenishes the bank's collateral and prevents a diminution
of value.
In addition, the Debtors ask the Court to compel FirstBank to
disburse the amounts held at the bank accounts in favor of the
Debtors and make available to the Debtors the cash collateral
funds existing at the petition date in all the accounts it
controls and any postpetition collections of the Debtors' rental
proceeds, as well as to return the amounts of $447,321 held at the
bank as a result from the unilateral application since February
24, 2016, of daily 10% claw backs on all deposits made into the
Cash Concentration Account by the Debtors.
A full-text copy of the Cash Collateral Motion dated May 30, 2016
is available at http://tinyurl.com/jx2hl9v
FirstBank complain that the Debtors commenced these Cases and
remained silent while using FirstBank's cash/cash collateral
without Court authorization or FirstBank consent. Even after
FirstBank filed the its Motion to Limit Interim Cash Collateral
Use, the Debtors unilaterally removed funds from the operating
account historically maintained at FirstBank" funds that the
Debtors had no authority to use.
FirstBank further complains that the Debtors seek approval of an
interim cash collateral arrangement (a) with no meaningful lender
oversight, (b) under a vague budget that appears to exceed
payments, (c) by claiming an equity cushion based on conjecture
and no evidence, (d) by proposing a replacement lien on
postpetition rents and nothing more " ignoring the Court's holding
that such a replacement lien is not adequate protection when the
same rents are consumed postpetition " and despite apparently
overdue rents and expired/expiring leases, and (e) by asserting,
in the face of the Debtors' historically declining revenues,
increasing losses, missed projections, and diminishing business,
that FirstBank's cash collateral is appreciating.
Accordingly, to the extent the Court is inclined to approve any
interim short-term cash usage pending a final hearing, FirstBank
asks the Court to condition any use upon, among other things, (a)
the grant of the relief requested in the FirstBank Motion --
segregating and maintaining all postpetition rent and receivable
payments in accounts at FirstBank, and an accounting of the
Debtors' use of cash since the Petition Date, (b) restricting
disbursements exclusively to those actually necessary to avoid
irreparable harm and a budget acceptable to FirstBank, (c)
prohibition during the interim period on any and all disbursements
or transfers of cash or inventory to any insider or non-Debtor
affiliate, and (d) monitoring, reporting, and collateral access
acceptable to FirstBank -- to ensure the Debtor's accountability
and to protect FirstBank's interests, avoiding irreparable harm
pending a final hearing.
On the contrary, the Debtors maintain that their liabilities of
all three term loans of FirstBank, sum up to only $44,695,912,
while the assets from all of Debtors' properties sum up to
$69,517,277, and as such, there is sufficient equity cushion in
order to adequately protect FirstBank from any loss in the value
of its collateral.
Furthermore, the Debtors tell the Court that the properties
encumbered by Firstbank are fully protected with insurance
policies which are up to date and protect the lender in any
natural disaster or event which could affect its value.
As can be evinced by the schedules submitted in the bankruptcy
docket, there are more than $9.2 million in assets which
adequately protect Firstbank, without any mention of the
investments or accounts receivables of the Debtors' Venezuelan
interests, and according to the Debtors' latest balance of
Firstbank's loans, the line of credit had a balance of $6,550,000
and assets without counting Debtors quantifiable interests in
Venezuela add up to more than $9.2 million dollars.
Therefore, the Debtors point out that Firstbank's interest in the
mortgages is adequately protected by an equity cushion of
approximately $5 million, as well as Firstbank's interest over the
rents because the unencumbered properties yield more than $4.2
million in rents as compared to the approximately $350,000
encumbered rents.
Komodidad Distibutors, Inc. and its affiliates are represented by:
Javier Vilarino, Esq.
VILARINO & ASSOCIATES LLC
P.O. Box 9022515
San Juan, PR 00902-2515
Telephone: 787-565-9894
Email: jvilarino@vilarinolaw.com
Attorneys for FirstBank Puerto Rico:
Zachary H. Smith, Esq.
MOORE & VAN ALLEN, PLLC
100 North Tryon Street
Suite 4700, Charlotte
North Carolina, 28202
Telephone: (704) 331-1046
Email: zacharysmith@mvalaw.com
-- and --
Antonio A. Arias, Esq.
Lina M. Soler-Rosario, Esq.
MCCONNELL VALDES, LLC
P.O. Box 364225
San Juan, Puerto Rico 00936-4225
Telephone: (787) 250-5604
Email: aaa@mcvpr.com
lms@mcvpr.com
About Komodidad Distributors
Komodidad Distributors, Inc. filed for Chapter 11 bankruptcy
protection (Bankr. D.P.R. Case No. 16-04161) on May 25, 2016. The
petition was signed by Jorge Galliano, president. The Hon. Enrique
S. Lamoutte Inclan presides over the case.
The Debtor estimated assets of $50 million to $100 million and
estimated debts of $10 million to $50 million.
Komodidad Distributors Inc. retails clothing, accessories, and
fragrances. The Company sells various brands of apparel including
men's and women's shirts, pants, slacks, shorts, skirts, dresses,
jackets, sweaters, and sleepwear, as well as handbags, belts,
earrings, necklaces, bracelets, watches, and rings. Komodidad
Distributors provides fashion products in Puerto Rico and
Venezuela.
PUERTO RICO ELECTRIC: Said to Offer Plan to Avert July Default
--------------------------------------------------------------
Michelle Kaske, writing for Bloomberg News, reported that
creditors for Puerto Rico's main electricity provider are
reviewing a proposal from the utility that would help the agency
avoid a $420 million bond default on July 1, according to three
people with direct knowledge of the plan.
According to Bloomberg News, the Puerto Rico Electric Power
Authority is in talks with investors owning about 35 percent of
the agency's securities and bond insurance companies to free up
cash needed to make the principal and interest payments, according
to the people, who asked for anonymity because the talks are
private. The transaction would be similar to one reached before a
Jan. 1 payment, where creditors agreed to buy new securities that
mature in 2019, the report related. Terms of the July deal are
still being worked out, the report said, citing the two people.
The government-owned utility, called Prepa, reached an agreement
in December with hedge funds and mutual funds known as the Ad-Hoc
Group and insurers MBIA Inc. and Assured Guaranty Ltd. to
restructure $9 billion in debt, the report related. The agreement
was the first reached between a commonwealth entity and creditors
as it seeks to reduce its $70 billion debt burden, the report
added. The U.S. Supreme Court struck down a Puerto Rico law on
June 13 that would have let its public utilities restructure their
debt over the objection of creditors, the report said.
Lisa Donahue, Prepa's chief restructuring officer, has said the
utility doesn't have enough cash to make the July 1 debt payment
and pay suppliers and contractors, the report further related.
As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2015, Standard & Poor's Ratings Services maintained its
'CC' long-term and underlying ratings (SPURs) on Puerto Rico
Electric Power Authority's (PREPA) electric revenue bonds.
However, the ratings remain on CreditWatch, where they were
originally placed with negative implications on June 18, 2014.
As of June 30, 2015, PREPA had about $8.44 billion of long-term
debt outstanding, and an additional $730 million due to
noteholders.
SPORTS AUTHORITY: Creditors Committee Has Limited Obj. to Sale
--------------------------------------------------------------
The Official Committee of Unsecured Creditors of Sports Authority
Holdings, Inc., et al., submitted to the U.S. Bankruptcy Court for
the District of Delaware their limited objection to the Debtors'
Motion which seeks to sell substantially all of the Debtors'
assets.
The Creditors Committee relates that it has no objection to the
Debtors' request in the Sale Motion for authority to sell
substantially all of their assets. It further relates that its
objection is limited to language in the proposed order approving
the sale as it relates to the Court's ruling on the DIP Financing
Motion that none of the DIP Lenders or the Term Agent will receive
a Section 506(c) surcharge waiver as requested in the DIP Motion.
The Creditors Committee is concerned with the final paragraph in
the Proposed Sale Order which provides: "Immediately upon the
Payment Date, and on each other date on which payment is to be
made by the Agent to or for the benefit of the Debtors, the
Debtors are authorized and directed to repay, or cause to be
repaid, the DIP Obligations, indefeasibly and in cash, by making
one or more payments to the DIP Agent, for the benefit of the DIP
Lenders. For the avoidance of doubt, nothing contained herein
modifies paragraphs 33 or 43 of the DIP Financing Order."
"While the Debtors and DIP Lenders included language in the final
sentence of that paragraph providing that '... nothing contained
herein modifies paragraphs 33 and 43 of the DIP Financing Order,'
such language is insufficient and arguably creates a conflict with
the Proposed Sale Order, which uses the word 'indefeasibly' and
the DIP Financing Order, which recognizes and preserves the
estates' rights to surcharge, and thus recover payment from, the
collateral being turned over to the DIP Lenders. Rather than
create such confusion, the Committee's request that the word
'indefeasibly' be removed will avoid any confusion or conflict,"
the Official Committee avers.
The Official Committee of Unsecured Creditors of Sports Authority
Holdings, Inc., et al., is represented by:
Robert J. Feinstein, Esq.
Jeffrey N. Pomerantz, Esq.
Bradford J. Sandler, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
919 North Market Street, 17th Floor
Wilmington, DE 19801
Telephone: (302)652-4100
Facsimile: (302)652-4400
E-mail: rfeinstein@pszjlaw.com
jpomerantz@pszjlaw.com
bsandler@pszjlaw.com
About Sports Authority
Sports Authority Holdings, et al., are sporting goods retailers
with roots dating back to 1928. The Debtors currently operate 464
stores and five distribution centers across 40 U.S. states and
Puerto Rico. The Debtors offer a broad selection of goods from a
wide array of household and specialty brands, including Adidas,
Asics, Brooks, Columbia, FitBit, Hanesbrands, Icon Health and
Fitness, Nike, The North Face, and Under Armour, in addition to
their own private label brands. The Debtors employ 13,000 people.
Sports Authority and six of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10527 to
16-10533) on March 2, 2016. The petitions were signed by Michael
E. Foss as chairman & chief executive officer.
The Debtors have engaged Gibson, Dunn & Crutcher LLP as general
counsel, Young Conaway Stargatt & Taylor, LLP as co-counsel,
Rothschild Inc. as investment banker, FTI Consulting, Inc., as
financial advisor and Kurtzman Carson Consultants LLC as notice,
claims, solicitation, balloting and tabulation agent. Lawyers at
Pachulski Stang Ziehl & Jones LLP represent the Official Committee
of Unsecured Creditors.
SPORTS AUTHORITY: Auction for Unsold Assets Adjourned to June 29
----------------------------------------------------------------
Sports Authority Holdings, Inc., and its affiliated debtors
announced that during the auction held on May 16, 2016, the
successful bidder for the Inventory Assets is the Joint Venture
Comprised of Gordon Brothers Retail Partners, LLC, Hilco Merchant
Resources, LLC and Tiger Capital Group, LLC ("Agent"). The
next-highest bidder is the Joint Venture comprised on SB Capital
Group, the Great American Group, 360 Merchant Solutions and Yellen
Partners.
The Debtors have determined to adjourn the Main Auction for all
Main Auction Assets, excluding the Sold Auction Assets but
including the Debtors' Remaining Leases (such assets, the
"Available Assets"), to June 29, 2016 at 10:00 a.m. (ET) (the
"Adjourned Main Auction Date"), to be held at the offices of
counsel to the Debtors, Young Conaway Stargatt & Taylor, LLP,
Rodney Square, 1000 N. King Street, Wilmington, Delaware 19801 (or
such other date, time or place as announced by the Debtors in a
filing on the Court's docket). In conjunction therewith, the
following deadlines will apply:
* Deadline to Bid on the Available Assets, Including the
Remaining Leases: June 23, 2016 at 5:00 p.m. (ET) (the "Adjourned
Main Auction Bid Deadline");
* Debtors' Deadline to Deliver Adequate Assurance Packages to
Affected Landlords: June 24, 2016 (one business day following
Adjourned Main Auction Bid Deadline);
* Adjourned Main Auction Date: June 29, 2016 at 10:00 a.m.
(ET);
* Sale Objection Deadline: July 7, 2016 at 4:00 p.m. (ET); and
* Sale Hearing Date: July 15, 2016 at 11:30 a.m. (ET).
The Main Auction Bidding Procedures will remain in full force and
effect, except as modified by the deadlines outlined.
Any party interested in Bidding on the debtors' remaining leases
should contact the Debtors' real estate advisor:
Michael Jerbich
A&G REALTY PARTNERS, LLC,
E-mail: michael@agrealtypartners.com
Agency Agreement
The Debtors executed an Agency Agreement with the successful
bidder, the joint venture comprised of Gordon Brothers Retail
Partners, LLC, Hilco Merchant Resources, LLC and Tiger Capital
Group, LLC ("Agent").
Under the Agency Agreement, the Agent will undertake to:
(a) sell all of the Merchandise from the Debtors' retail
store locations by means of a "store closing", "sale on
everything", "going out of business", "everything must go", or
similar sale; and
(b) dispose of the Owned Furniture, Fixtures and Equipment in
the Stores, the Debtors' corporate offices and Distribution
Centers.
The Agency Agreement contains, among others, these relevant terms:
(1) Payments to Merchant: Agent guarantees that Merchant will
receive 101% of the aggregate Cost Value of the Merchandise. The
Guaranteed Amount will be calculated based upon the aggregate Cost
Value of the Merchandise as determined by (i) the final certified
report of the Inventory Taking Service after verification and
reconciliation thereof by Agent and Merchant, (ii) the aggregate
Cost Value of the Merchandise subject to Gross Rings; and (iii)
any other adjustments to Cost Value as expressly contemplated by
the Agreement. The Guaranty Percentage has been fixed based upon
the aggregate Cost Value of the Merchandise included in the Sale
being not less than $365,000,000 and not more than $390,000,000 as
of the Sale Commencement Date.
(2) Compensation to Agent: After Proceeds are used to repay
Agent for amounts paid on account of the Guaranteed Amount and to
pay Expenses, all remaining Proceeds will be allocated in the
following order of priority: FIRST: to the Agent (x) an amount
equal to 6% of the aggregate Cost Value of the Merchandise
included in the Sale and (y) 50% of the aggregate Proceeds
attributable to Delivery Commissions; and THEREAFTER: 50% to Agent
and 50% to Merchant.
Sale of Leasehold Interests
The Debtors inform the Court that they had sold these leasehold
interests in certain unexpired leases of nonresidential real
property:
(1) Store 115, located at Farmington, CT
Successful Bidder: Price REIT c/o Kimco Realty Corp.
(Landlord)
(2) Store 672, located at San Mateo, CA
Successful Bidder: SPI Property Management Corporation
(Landlord)
(3) Store 771, located at Honolulu, HI
Successful Bidder: Ward Gateway-Industrial Village, LLC
(Landlord)
The Debtors tell the Court that they intend to submit respective
forms of order approving the disposition of Sold Leases under
certification of counsel prior to the Main Auction Sale Hearing.
Sports Authority Holdings, Inc., and its affiliated debtors are
represented by:
Michael R. Nestor, Esq.
Kenneth J. Enos, Esq.
Andrew L. Magaziner, Esq.
YOUNG CONAWAY STARGATT & TAYLOR, LLP
Rodney Square
1000 North King Street
Wilmington, DE 19801
Telephone: (302)571-6600
Facsimile: (302)571-1253
E-mail: mnestor@ycst.com
kenos@ycst.com
amagaziner@ycst.com
- and -
Robert A. Klyman, Esq.
Matthew J. Williams, Esq.
Jeremy L. Graves, Esq.
Sabina Jacobs, Esq.
GIBSON, DUNN & CRUTCHER LLP
333 South Grand Avenue
Los Angeles, CA 90071-1512
Telephone: (213)229-7000
Facsimile: (213)229-7520
E-mail: rklyman@gibsondunn.com
mjwilliams@gibsondunn.com
jgraves@gibsondunn.com
sjacobs@gibsondunn.com
About Sports Authority
Sports Authority Holdings, et al., are sporting goods retailers
with roots dating back to 1928. The Debtors currently operate 464
stores and five distribution centers across 40 U.S. states and
Puerto Rico. The Debtors offer a broad selection of goods from a
wide array of household and specialty brands, including Adidas,
Asics, Brooks, Columbia, FitBit, Hanesbrands, Icon Health and
Fitness, Nike, The North Face, and Under Armour, in addition to
their own private label brands. The Debtors employ 13,000 people.
Sports Authority and six of its affiliates filed Chapter 11
bankruptcy petitions (Bankr. D. Del. Case Nos. 16-10527 to
16-10533) on March 2, 2016. The petitions were signed by Michael
E. Foss as chairman & chief executive officer.
The Debtors have engaged Gibson, Dunn & Crutcher LLP as general
counsel, Young Conaway Stargatt & Taylor, LLP as co-counsel,
Rothschild Inc. as investment banker, FTI Consulting, Inc., as
financial advisor and Kurtzman Carson Consultants LLC as notice,
claims, solicitation, balloting and tabulation agent. Lawyers at
Pachulski Stang Ziehl & Jones LLP represent the Official Committee
of Unsecured Creditors.
================================
T R I N I D A D & T O B A G O
================================
* TRINIDAD & TOBAGO: Budgeted Oil Price Should Have Been US$30
--------------------------------------------------------------
Sue-Ann Wayow at Trinidad Express reports that economist Dr. Roger
Hosein said that if Government had pegged the national Budget at
US $30 per barrel of oil, there would have been no need to
withdraw money from the Heritage and Stabilization Fund (HSF).
Dr. Hosein said while the TT $2.5 billion was a small withdrawal
from the fund it must be used prudently, according to Trinidad
Express.
In the budget review on April 8, the 2015-2016 budget was pegged
at a budgeted oil price of US $35 per barrel, the report notes.
The report relays that Dr. Hosein, in statement issued to the
Express said: "Based on the founding purpose of the Fund, the
stated intention of removing resources to service the Trinidad and
Tobago economy is not unreasonable, given that the average daily
price of crude oil since the budget was read, is around US$37. But
this then raises another question, suppose we had budgeted at
US$30 per barrel then according to this marker price, there would
have been no need to withdraw from the fund."
Dr. Hosein said: "Substantively then, the budgeted price of oil
assumed helps in a large way to condition when resources are
withdrawn from the fund and the higher the budgeted oil price the
greater the probability that if market prices swing south, that
resources from the fund will be called upon. But a high budgeted
price of oil may simply be a reflection of fiscal imprudence or
political craftiness of a government."
Giving a history of the fund established in 2007, Dr. Hosein said
the main objectives were to "save petroleum rents so that they can
be used as a buffer to smooth government expenditure in periods of
significant relative decline in government petroleum revenue and
save petroleum rents for future generations. Thus Trinidad and
Tobago HSF is a combination of both a revenue stabilization fund
and a heritage fund, " the report relays.
He added that one had to be careful when assessing the HSF.
Dr. Hosein said: "It seems that the HSF has accumulated savings
even while the Government of Trinidad and Tobago operated a fiscal
deficit. Specifically, the State made contributions to the fund
between 2009 and 2013, while incurring fiscal deficits. This is
not practical as it may be possible that money to be placed into
the fund can be borrowed in some instances at higher rates than
the returns to the resources placed in the fund," the report adds.
***********
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 2016. All rights reserved. ISSN 1529-2746.
This material is copyrighted and any comillionercial 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 * * *