/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170124.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, January 24, 2017, Vol. 18, No. 017 Headlines A R G E N T I N A ARGENTINA: Hopes to Keep Trade Deal With United States B R A Z I L GEOPARK LATIN AMERICA: S&P Raises CCR to 'B' on Better Performance HAITONG BANCO: S&P Revises Outlook & Affirms 'BB-/B' Ratings SAMARCO MINERACAO: Moody's Says Deal on Dam Lawsuit Credit Pos. C A Y M A N I S L A N D S APQ ALEXANDRIA: Commences Liquidation Proceedings BRJ CHINA: Placed Under Voluntary Wind-Up CELESTIAL FINANCE: Commences Liquidation Proceedings DESTRIER CAPITAL: Placed Under Voluntary Wind-Up DOVETAIL INVESTMENTS: Commences Liquidation Proceedings GINGERALE LIMITED: Commences Liquidation Proceedings LIBERTY HOLDINGS: Commences Liquidation Proceedings PERFIN INVESTMENT: Placed Under Voluntary Wind-Up PERFIN INVESTMENT MASTER: Placed Under Voluntary Wind-Up ROUNDABOUT HOLDINGS: Commences Liquidation Proceedings STRAVA ENHANCED: Placed Under Voluntary Wind-Up STRAVA OFFSHORE: Placed Under Voluntary Wind-Up VINCI CAPITAL: Placed Under Voluntary Wind-Up VINCI INTERNATIONAL: Placed Under Voluntary Wind-Up Y2L COMPANY: Commences Liquidation Proceedings C H I L E AES GENER: Alto Maipo Deal No Expected Impact on Fitch Ratings D O M I N I C A N R E P U B L I C AEROPUERTOS DOMINICANOS: Moody's Withdraws B1 Secured Notes Rating DOMINICAN REPUBLIC: Offers Jobs and Homes to Valle Nuevo Squatters M E X I C O CEMEX SAB: Bertrand Maintains Firm Takeover Offer Too Low P E R U INRETAIL SHOPPING: Moody's Affirms Ba2 Sr. Unsecured Rating V E N E Z U E L A VENEZUELA: Names Ricardo Sanguino New Head of Central Bank X X X X X X X X X LATAM: ECLAC wants China, Caribbean to Cooperate in Key Areas LATAM: Sovereign Outlook is Neg. on Tepid Growth, Moody's Says - - - - - ================= A R G E N T I N A ================= ARGENTINA: Hopes to Keep Trade Deal With United States ------------------------------------------------------ EFE News reports that Argentina's agriculture minister said Sunday that Buenos Aires was confident that the new United States president would respect the bilateral trade agreements signed in 2016. Ricardo Buryaile told Radio Con Vos that he was hopeful that Donald Trump would not abandon the trade deals covering exports of beef and lemons, according to EFE News. "I don't see anything like that happening because all the health and political steps have been followed, there was a right to oppose it in Congress, and that was overcome. We're waiting, but every country is sovereign when it comes to its decisions," the agriculture minister said, the report relays. Argentine President Mauricio Macri and former US President Barack Obama signed the trade agreements in March 2016, the report notes. Argentina said on Dec. 20 that US health officials had approved exports of lemons to the United States following a 15-year ban, the report relays. The South American country, one of the world's largest growers and exporters of lemons, had been trying to regain entry to the US market since 2008, the report notes. US health officials banned imports of Argentine lemons in September 2001, the report discloses. The Argentine government said last September that efforts to re- enter the US beef market were making progress, the report adds. * * * On Oct. 17, 2016, the Troubled Company Reporter-Latin America reported that Fitch Ratings has affirmed Argentina's sovereign ratings as: -- Long-term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B', Outlook Stable; -- Senior unsecured Foreign Currency bonds at 'B'; -- Country Ceiling at 'B'; -- Short-Term Foreign and Local Currency IDRs at 'B'. 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. =========== B R A Z I L =========== GEOPARK LATIN AMERICA: S&P Raises CCR to 'B' on Better Performance ------------------------------------------------------------------ S&P Global Ratings raised its corporate credit and senior secured debt ratings on GeoPark Latin America Limited Agencia en Chile (GPLAC) to 'B' from 'B-'. The outlook is stable. The rating on the senior secured notes incorporates the guarantees, consisting of equity interests in its operating subsidiaries in Chile and Colombia, which mitigate potential structural subordination to priority liabilities at the operating subsidiaries level. The upgrade reflects S&P's expectation that, in the next 12 months, GPLAC's credit metrics will strengthen relative to S&P's previous projections. In 2016, the company not only registered a very successful drilling campaign, with a production growth of 10%, but continued to cut costs to temper the impact of lower oil prices. Amid some rebound in oil prices the company will carry out a considerable investment plan mostly in Colombia and S&P expects GPLAC's production to reach more than 28,000 barrels of oil equivalent per day (boepd) in 2017. These factors should help the company to weather price volatility while maintaining a net leverage level at 2.0x-2.5x. Even though S&P believes GPLAC's estimated proved undeveloped reserves of about 50 million barrels of oil (boe) bodes well for the company's future production expansion, the rating constraints are GPLAC's small scale on a global basis (with estimated net proved developed reserves base at about 30 million boe as of the end of 2016) and lack of vertical integration. On the other hand, these factors are mitigated by geographic diversification and cost-control discipline. GeoPark Limited controls GPLAC and has operations in Chile, Colombia, Brazil, Peru and Argentina. S&P bases its analysis of GPLAC on its parent's consolidated figures because S&P believes both entities constitute a single economic entity with a single default risk. In S&P's view, GPLAC is a core subsidiary of GeoPark because the company is integral to the group's strategy, it's highly unlikely to be sold and is closely linked to the group's reputation given that it shares the same name. Moreover, S&P believes the group will financially support GPLAC, as seen in the guarantee on GPLAC's $300 million bond. HAITONG BANCO: S&P Revises Outlook & Affirms 'BB-/B' Ratings ------------------------------------------------------------ S&P Global Ratings revised its outlook on Haitong Banco de Investimento do Brasil S.A.'s global and national scale ratings to stable from positive. At the same time, S&P lowered its long-term national scale rating on the bank to 'brA' from 'brA+'. S&P also affirmed its 'BB-/B' global scale ratings on Haitong Brasil. The outlook revision on Haitong Brasil reflects the same action on its parent, Haitong Bank S.A., which was a result of the difficulties ahead for the Portuguese banking industry. S&P now considers the trend in Portugal's banking industry risk to be stable, rather than positive. In S&P's view, the Portuguese banking system will struggle to improve its profitability and efficiency. Additionally, all major banks in Portugal--except for Banco Santander Totta S.A.-- are undergoing significant restructuring, or management and ownership changes. S&P continues to base its ratings on Haitong Brasil on its core subsidiary status to Haitong Bank, given its high importance, ownership, strategy, and long-term commitment to Brazil-based bank. In addition, the bank has become a significant earnings contributor for its parent. Haitong Brasil is fully integrated with its parent, and we believe the rest of the group will provide support to the bank under any foreseeable circumstances, except in an event of sovereign distress. Due to its status as a core subsidiary, S&P equalizes the ratings and the outlook on Haitong Brasil with the ratings on its parent. The downgrade of Haitong Brasil on the national scale follows the revision of its global scale outlook to stable and the more challenging credit conditions for its parent. SAMARCO MINERACAO: Moody's Says Deal on Dam Lawsuit Credit Pos. --------------------------------------------------------------- Moody's Investors Service comments that the Preliminary Agreement signed by Samarco Mineracao S.A. (C, no outlook), Vale S.A. (Ba3 Stable) and BHP Billiton Brasil Ltda (unrated), a subsidiary of BHP Billiton Limited (A3 Stable), and the Federal Prosecutors' Office in Brazil is credit positive for Samarco and its shareholders, as it establishes the process and time frame for a final agreement to be concluded by June 30, 2017, which would settle the two civil public actions related to Samarco's dam collapse in November 2015. However, the final agreement may entail additional liabilities to Samarco and its shareholders. ========================== C A Y M A N I S L A N D S ========================== APQ ALEXANDRIA: Commences Liquidation Proceedings ------------------------------------------------- The sole shareholder of APQ Alexandria Fund Limited, on Dec. 8, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 9, 2017, will be included in the company's dividend distribution. The company's liquidator is: Mourant Ozannes c/o Bart Turtelboom Corey Stokes Attorneys-at-law 94 Solaris Avenue Camana Bay P.O. Box 1348 Grand Cayman KY1-1108 Cayman Islands Telephone: (345) 814-9277 Facsimile: (345) 949-4647 BRJ CHINA: Placed Under Voluntary Wind-Up ----------------------------------------- The sole shareholder of BRJ China Credit Fund Limited, on Dec. 9, 2016, 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: Barry Wang Chi Lau c/o Charlotte Bradshaw Ogier Central Tower, 11th Floor 28 Queen's Road Central Hong Kong Telephone: +852 3656 6000 Facsimile: +852 3656 6001 CELESTIAL FINANCE: Commences Liquidation Proceedings ---------------------------------------------------- The shareholders of Celestial Finance Limited, at a Dec. 8, 2016 extraordinary meeting, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 19, 2017, will be included in the company's dividend distribution. The company's liquidator is: Kent Limited c/o Michelle R. Bodden-Moxam St. George's International Limited The Grand Pavilion Commercial Centre Oleander Way, 802 West Bay Road P.O. Box 32052 Grand Cayman KY1-1208 Cayman Islands Telephone: (345) 946-6145 Facsimile: (345)-946-6146 DESTRIER CAPITAL: Placed Under Voluntary Wind-Up ------------------------------------------------ The sole shareholder of Destrier Capital Partners, Ltd, on Dec. 1, 2016, 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: Destrier Capital Management LLC c/o Tim Cone Ogier 89 Nexus Way Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 DOVETAIL INVESTMENTS: Commences Liquidation Proceedings ------------------------------------------------------- The members of Dovetail Investments Limited, on Dec. 7, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 19, 2017, will be included in the company's dividend distribution. The company's liquidator is: Zedra Directors (Cayman) Limited c/o Name: Enola Reid Telephone: +1 (345) 914-5413 136 Shedden Road, One Capital Place, 3rd Floor P.O. Box 487 George Town, Grand Cayman Cayman Islands KY1-1106 GINGERALE LIMITED: Commences Liquidation Proceedings ---------------------------------------------------- The members of Gingerale Limited, on Dec. 7, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 19, 2017, will be included in the company's dividend distribution. The company's liquidator is: Zedra Directors (Cayman) Limited c/o Name: Enola Reid Telephone: +1 (345) 914-5413 136 Shedden Road, One Capital Place, 3rd Floor P.O. Box 487 George Town, Grand Cayman Cayman Islands KY1-1106 LIBERTY HOLDINGS: Commences Liquidation Proceedings --------------------------------------------------- The shareholder of Liberty Holdings Limited, on Dec. 8, 2016, 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: Dr. Rolf Schmid c/o Dorothee Langemann Telephone: 41 44 711 71 71 Facsimile: 41 44 711 71 11 Limmatquai 94, Zurich, Switzerland CH-8021 PERFIN INVESTMENT: Placed Under Voluntary Wind-Up ------------------------------------------------- The sole shareholder of Perfin Investment Fund, Ltd., on Dec. 9, 2016, 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: Perfin Administracao De Recursos Ltda. c/o Tim Cone Ogier 89 Nexus Way Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 PERFIN INVESTMENT MASTER: Placed Under Voluntary Wind-Up -------------------------------------------------------- The sole shareholder of Perfin Investment Master Fund SPC, on Dec. 9, 2016, 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: Perfin Administracao De Recursos Ltda. c/o Tim Cone Ogier 89 Nexus Way Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 ROUNDABOUT HOLDINGS: Commences Liquidation Proceedings ------------------------------------------------------ At an extraordinary meeting held on Dec. 8, 2016, the shareholders of Roundabout Holdings resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 19, 2017, will be included in the company's dividend distribution. The company's liquidator is: Brott Limited c/o Michelle R. Bodden-Moxam St. George's International Limited The Grand Pavilion Commercial Centre Oleander Way, 802 West Bay Road P.O. Box 32052 Grand Cayman KY1-1208 Cayman Islands Telephone: (345) 946-6145 Facsimile: (345) 946-6146 STRAVA ENHANCED: Placed Under Voluntary Wind-Up ----------------------------------------------- The sole shareholder of Strava Enhanced Fund Ltd, on Dec. 9, 2016, 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: Strava Capital Investments GP c/o Tim Cone Ogier 89 Nexus Way Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 STRAVA OFFSHORE: Placed Under Voluntary Wind-Up ----------------------------------------------- The sole shareholder of Strava Offshore Fund, Ltd., on Dec. 9, 2016, 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: Strava Capital Investments GP c/o Tim Cone Ogier 89 Nexus Way Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 VINCI CAPITAL: Placed Under Voluntary Wind-Up --------------------------------------------- The sole shareholder of Vinci Capital Venture - I Fund Ltd., on Dec. 9, 2016, 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: Vinci Partners USA LLC c/o Tim Cone Ogier 89 Nexus Way Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 VINCI INTERNATIONAL: Placed Under Voluntary Wind-Up --------------------------------------------------- The sole shareholder of Vinci International Fund, on Dec. 9, 2016, 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: Vinci Gestora De Recursos Ltda. c/o Tim Cone c/o Ogier 89 Nexus Way Camana Bay Grand Cayman KY1-9009 Cayman Islands Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949-9877 Y2L COMPANY: Commences Liquidation Proceedings ---------------------------------------------- The members of Y2L Company Limited, on Dec. 7, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 19, 2017, will be included in the company's dividend distribution. The company's liquidator is: Zedra Directors (Cayman) Limited c/o Name: Enola Reid Telephone: +1 (345) 914-5413 136 Shedden Road, One Capital Place, 3rd Floor P.O. Box 487 George Town, Grand Cayman Cayman Islands KY1-1106 ========= C H I L E ========= AES GENER: Alto Maipo Deal No Expected Impact on Fitch Ratings -------------------------------------------------------------- Fitch expects AES Gener S.A.'s (Gener) credit metrics to remain under pressure over the short term following announcement on Jan. 19, 2017, that it will acquire the remaining 40% of Alto Maipo Spa (Alto Maipo) from Minera Los Pelambres (MLP). To avoid negative rating actions Gener will need to proactively take measures to rebalance its capital structure to a consolidated leverage level of approximately 3.5x in the medium to long term. Gener's 'BBB-' ratings assume the additional cost overruns on Alto Maipo were going to be financed through an increased equity contribution from the partners and additional project finance debt. Fitch expects that Gener's equity contribution will be in the range of USD150 million to USD200 million, while the remaining portion will be financed through increased non-recourse debt as a result of the company's increased participation in Alto Maipo. Fitch expects Gener's total consolidated leverage to be approximately 4.0x in 2017. The company's management intends to strengthen its capital structure through debt prepayment of USD200 million to USD380 million during 2017-2019. Gener's ratings assume that by 2020 and after a full year of Alto Maipo's operations has been recorded, total leverage will decline to below 3.5x, proportionate leverage will decline to approximately 3.0x and excluding the non-recourse debt and EBITDA, debt-to-EBITDA will decline to below 2.0x. Fitch expects debt repayment to be supported by the company's cash flow generation and either through a significant reduction on dividend payments in excess of USD190 million for 2017 to 2019 and/or equity or equity like instruments issuances. The company's commitment has already been evidenced with a reduction in dividends payments during 2016 of USD 178 million and debt repayment of USD 100 million. Fitch takes an overall neutral view of the acquisition and reduction in tariffs under the power purchase agreement (PPA) with Antofagasta Minerals SA (AMSA), provided the company successfully reduces leverage within Fitch's expectations and Alto Maipo commences operations in 2019. Fitch will continue monitoring events as they occur, and any deviation from these expectations may negatively affect Gener's ratings. On Jan. 19, 2017, Gener announced that it will acquire the remaining 40% from MLP in exchange for a renegotiation of the existing conditions under the PPA between Alto Maipo and AMSA. MLP, 60% owned by AMSA, will sell its participation in the Alto Maipo project, while the amended PPA between Alto Maipo and AMSA will remain in place including the modification of certain conditions on the supply agreements. Additionally, after acquiring the remaining 40% participation on Alto Maipo from MLP, Gener will incorporate Strabag SpA, main contractor of the project as a minority shareholder of Alto Maipo, with an initial stake of approximately 7% of the shares of Alto Maipo. Fitch currently rates AES Gener S.A as: -- Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) 'BBB-'; -- International senior unsecured bond ratings 'BBB-'; -- International junior subordinated bond ratings 'BB'; -- Long-term national scale rating 'A+(cl)'; -- National senior unsecured bond ratings 'A+(cl)'; -- National equity rating 'Primera Clase Nivel 2(cl)'. The Rating Outlook is Stable. =================================== D O M I N I C A N R E P U B L I C =================================== AEROPUERTOS DOMINICANOS: Moody's Withdraws B1 Secured Notes Rating ------------------------------------------------------------------ Moody's Investors Service withdrew the B1 rating assigned to Aeropuertos Dominicanos Siglo XXI (Aerodom) Senior Secured Notes originally due in 2019 (approximate outstanding amount as of January 18 2017 of US$484 million). The withdrawal follows Aerodom's prepayment of those notes with a US$216 million loan due 2024 and the issuance of US$317 million in Senior Secured Notes due 2029. The new issuance has a coupon of 6.750%. Last January 6, Moody's assigned a Ba3 rating to the new Notes with a stable outlook. The Ba3 rating on the new Notes is underpinned by the project finance features embedded in their payment structure, including step-in-rights, limitations on additional indebtedness, dividend distribution test, a 6-month debt service reserve fund (only through the Loan maturity) and a capital expenditure fund of US$15 million. In addition, the rating incorporates the high leverage leading to relatively low metrics, partially offset by the strategic importance of Aerodom's airports to the Dominican Republic. DOMINICAN REPUBLIC: Offers Jobs and Homes to Valle Nuevo Squatters ------------------------------------------------------------------ Dominican Today reports that environment minister Francisco Dominguez said conserving Valle Nuevo National Park is an urgent priority, since seven of every 10 Dominicans benefit from the waters of the rivers born there. The official pledged however to launch a program whose first part would provide the villagers with as many as 50 homes, and have been offered jobs as park rangers and in nurseries, with a salary of 7,000, and health insurance as well, according to Dominican Today. Minister Dominguez said the waters from the protected area supply more than a dozen aqueducts are and are also a source of electricity, so its destruction should be prevented, because "it ' a great source of life," the report notes. "Valle Nuevo is the mother of the waters. To continue this process of deterioration is to destroy Valle Nuevo, he said, any action to protect the park benefits the communities," Minister Dominguez said, adding that around 15 percent of its surface area is nearly irreparably, "and such a problem requires taking quick decisions," the report relays. As reported in the Troubled Company Reporter-Latin America on Nov. 22, 2016, Fitch Ratings has taken the following rating actions on the Dominican Republic: -- Long-Term Foreign Currency Issuer Default Rating (IDR) upgraded to 'BB-' from 'B+'; assigned Stable Outlook; -- Long-Term Local Currency IDR upgraded to 'BB-' from 'B+'; assigned Stable Outlook; -- Senior unsecured Foreign and Local Currency bonds upgraded to 'BB-' from 'B+'; -- Short-Term Foreign Currency IDR affirmed at 'B'; -- Short-Term Local Currency IDR affirmed at 'B'. =========== M E X I C O =========== CEMEX SAB: Bertrand Maintains Firm Takeover Offer Too Low --------------------------------------------------------- Sasha Harrinanan at Trinidad and Tobago Newsday reports that CEMEX, S.A.B. de C.V.'S take-over bid of Trinidad Cement Limited (TCL) is set to close Tuesday, Jan. 24, at the unchanged, amended offer of TT $5.07 per share but former TCL CEO, Rollin Bertrand, maintains that the offer is too low. In a statement emailed to the media, Mr. Bertrand said based on his "rough valuation", TCL's diluted share value should be TT $7.71 while its undiluted share value should be TT $11.56, according to Trinidad and Tobago Newsday. Noting that the board's 40-page Supplemental Directors' Circular; published in the newspapers, "revealed a "Fair Price Range" of $5.60 to $6.18," Mr. Bertrand maintained that "their range is too low." "(I) stick to my rough valuation, using TCL's BDP (Best Demonstrated Performance) EBITDA (earnings before interest, taxes, depreciation and amortization) of US $85 million with a valuation multiple of 7, to give a diluted share (375 million shares) value of TT$7.71 and undiluted share (250 million) value of TT$11.56," Mr. Bertrand said, the report relays. The Supplemental Directors' Circular included a Fairness Opinion from accounting firm, Ernst and Young (EY), the report notes. The firm valued TCL shares at between TT$5.60 and TT$6.18 per share in a January 18 Fairness Opinion requested by the TCL board, the report discloses. As reported in the Newsday, EY refused however to make an assessment of whether this is a fair price for the shares and have advised shareholders to obtain advice from investment professionals or lawyers, the report says. The company's board has also directed shareholders to do the same, even though it has told them, outright, to reject Cemex's amended offer made through its subsidiary, Sierra Trading, the report relays. Saturday also saw the publication of an advertisement by Cemex, in which the Mexican building materials giant announced that it had surpassed the 50.01 percent threshold of shareholders acceptances, the report notes. This represents one of the conditions needed to be met to complete its bid to acquire full control of TCL, something which Bertrand said "means that there will be no further increases in the offer price," the report relays. "However," Mr. Bertrand added, "one has to wonder about the theatrics of the move from $4.50 to $5.07, as if one examines Cemex's "Availability of Funds statement" in its December 5th 2016 offer, Cemex had borrowed US$100 million to purchase 133 million shares suggesting that they intended making a final offer of around $5.13 but were just playing the game depending on shareholders' resistance," the report notes. Mr. Bertrand, who is also a TCL shareholder, described as "amusing" the decision of TCL Chairman, Wilfred Espinet, "to accept Cemex's offer of $5.07", saying this goes to the heart of his past criticisms of the Espinet-led board "who squandered all leverage by giving away the 20 percent Limit on shareholding for $2.90 per share to Cemex," the report notes. As reported in the Troubled Company Reporter-Latin America on July 27, 2016, Fitch Ratings affirmed CEMEX, S.A.B. de C.V.'s (CEMEX) Long-Term Issuer Default Rating (IDR) at 'BB-'. Fitch has also upgraded the company's National Scale Long-Term Rating to 'A(mex)' from 'A- (mex)' and affirmed the company's National Scale Short-Term rating at 'F2 (mex)'. The Rating Outlook remains Stable. ======= P E R U ======= INRETAIL SHOPPING: Moody's Affirms Ba2 Sr. Unsecured Rating ----------------------------------------------------------- Moody's Investors Service has affirmed the ratings of InRetail Shopping Malls, including the Ba2 senior unsecured rating. The rating outlook is stable. The following ratings were affirmed: Issuer: InRetail Shopping Malls Foreign Currency Senior Unsecured Notes at Ba2 Global Scale, Local Currency Senior Unsecured Notes at Ba2 RATINGS RATIONALE The Ba2 senior unsecured rating reflects InRetail's strong operating performance, reflected in the company's stable occupancy in the mid-90% range, good tenant profile and solid same-store year-over-year NOI growth. The company has solid credit metrics, including net debt/EBITDA of 3.7x, fixed charge coverage of 2.4x and secured debt % gross assets of 1.7% as of the 3Q16. The debt maturity profile of the company is very manageable, with less than 12% of debt coming due over the next four years. However, same-store sales for the 3Q16, which were 4.4% have been decelerating since 2013 due to weaker consumption trends in Peru. Strong macroeconomic fundamentals, including strong demand and limited supply, coupled with the portfolio's long-term leases support earnings consistency. The tenant base is diversified, with the largest tenants including Plaza Vea (8.6% of total rents), Promart (8.4%), Cineplanet (6.8%) and Oechsle (6.1%), all of which are owned by InRetail's parent Intercorp Peru. Of concern is InRetail's lack of geographic diversification -- all assets are located in Peru -- as well as asset concentration. The largest asset, Real Plaza Salaverry, represented 20% of NOI as of 3Q16 and the top three assets represented over 40% of NOI. In addition, Moody's considers liquidity to be weak in comparison to global peers as the company does not have a committed revolving line of credit. The company relies on debt and free cash flow to fund its business needs. Finally, some foreign currency risk exists as almost 75% of its debt is denominated in U.S. dollars and most of its revenues (88%) are denominated in Peruvian Soles. In 2015 the company entered into a contract to hedge US$200 million of the principal amount of its 6.5% senior notes due 2021. In addition, the company paid down $51 million of principal on the notes in the same year, which together with the currency hedge somewhat mitigates the foreign currency risk, and reduced its U.S. dollar debt exposure to 25% as of 3Q16. The stable outlook reflects Moody's expectation of continued positive same-store sales growth while maintaining healthy occupancy in the mid-90% range and maintaining key credit metrics at current levels. Moody's indicated that a rating upgrade would be difficult, however it would be predicated upon fully loaded fixed charge coverage (interest expense, capitalized interest and principal amortization) consistently above 3.0x, maintenance of the unencumbered asset pool above 80% of gross assets, secured debt levels sustained below 5% and the development pipeline representing less than 15% of gross assets on a sustained basis through real estate cycles. Negative rating pressure would likely result from any material difficulty with the execution and lease- up of Real Plaza Puruchuco, rapid deceleration of tenants sales and increase in mall vacancies, an inability to show adequate liquidity for the next 24 months and Net Debt/EBITDA consistently above 5x. The last rating action with respect to InRetail Shopping Malls was on July 22, 2014 when Moody's assigned a Ba2 global scale, local currency rating to the company's proposed senior unsecured bond issuance with a stable ratings outlook. InRetail Shopping Malls, is a shopping center owner and operator in Peru with a total owned portfolio of 19 assets, representing 620,000 square meters (m2) of gross leasable area (GLA). As of September 30, 2016, the company had total book assets of US$1 billion. ================= V E N E Z U E L A ================= VENEZUELA: Names Ricardo Sanguino New Head of Central Bank ---------------------------------------------------------- Kejal Vyas at The Wall Street Journal reports that Venezuela president Nicolas Maduro named a longtime ruling Socialist Party lawmaker as the new head of the central bank as the oil-rich nation tries to turn around a devastating economic crisis. Ricardo Sanguino, who has been a legislator since 2000 and headed the National Assembly's budget commission, replaces Nelson Merentes, a mathematician whose leadership of the bank since 2009 has been marked by frenzied money printing to pay for populist government programs, contributing to a free fall in the value of the local currency, the bolivar, according to The Wall Street Journal. "I want to start a new stage of development of the central bank," President Maduro said in a televised address without providing details, the report notes. President Maduro called Mr. Sanguino "one of the most studious and knowledgeable men when it comes to the financial, economic and monetary life of the country," the report relays. In brief comments, Mr. Sanguino praised the bank's work in 18 years of Socialist rule, first under the late firebrand Hugo Chavez -- who stripped it of much of its autonomy -- and then under Mr. Maduro, the report discloses. "We were able to show that we can advance," Mr. Sanguino said, the report notes. As the economy has floundered in recent years, the central bank has stopped regularly publishing basic data like gross domestic product and inflation, the report discloses. Venezuela's economy is estimated to have shrunk by 16.8% in 2016, Torino Capital economist Francisco Rodriguez said in a Jan. 17 report, calling it the worst year on record, the report says. In the nearly four years since Mr. Maduro took office, Venezuela has seen an economic contraction just shy of 28%, comparable with countries entrenched in war like Iraq, Syria and Liberia, Mr. Rodriguez said, the report relays. Official figures show that the central bank increased bolivar supply 15-fold since the start of 2013. The International Monetary Fund forecasts four-digit inflation in 2017 as the country faces dollar shortages to pay for imports, generating widespread scarcities of food and medicine, the report notes. Mr. Maduro blames lower commodity prices and a so-called "economic war" waged by his political rivals, the report discloses. Economists, however, point the finger at populist spending and mismanagement, the report notes. In response to soaring prices, the central bank this month began distributing new high-denomination bank notes of up to VEB20,000, but they were released weeks later than expected because the bills, which are printed abroad, didn't arrive in time, the report notes. The government said it will soon take out of circulation its 100- bolivar bill, which had been the country's biggest note but has a street value of just a few U.S. cents, the report adds. As reported in the Troubled Company Reporter-Latin America on July 5, 2016, Fitch Ratings affirmed Venezuela's Long-Term Foreign-and Local-Currency Issuer Default Ratings (LT FC/LC IDR) at 'CCC'. Fitch has also affirmed the sovereign's Short-Term Foreign Currency (ST FC) IDR at 'C' and country ceiling at 'CCC'. ================= X X X X X X X X X ================= LATAM: ECLAC wants China, Caribbean to Cooperate in Key Areas ------------------------------------------------------------- Trinidad Express reports that the Executive Secretary of the Economic Commission for Latin America and the Caribbean, Alicia Barcena is calling on regional countries to cooperate with China in key areas to boost development. Speaking at the World Economic Forum here, Ms. Barcena urged that this cooperation involve, among other things, infrastructure, energy and "especially, agriculture, since the regional potential for agricultural and food production could meet the Asian country's demands," according to Trinidad Express. "We must expand and diversify our economic relations," stressed the regional organization's most senior representative in participating in the session, entitled "China's Pivot to World Markets," the report notes. Ms. Barcena referenced an ECLAC document that coincided with a visit last November by Chinese President Xi Jinping at ECLAC's headquarters in Santiago, Chile, the report relays. There, Jinping participated in a media summit with the aim of bringing about greater cultural rapport with Latin America and the Caribbean, ECLAC said, the report relays. Ms. Barcena said China has delineated a strategy of links with the region based on trade, investments, financing and cooperation, with six priority areas: Infrastructure, transportation, energy and natural resources, industry, science and technology, and agriculture, the report relays. In this last sector, Ms. Barcena said China, with 1.3 billion inhabitants and just 7 percent of the world's arable land and 6 percent of its water resources, "represents a market with great potential" for the region, the report notes. The report notes that Ms. Barcena said the region, through the Community of Latin American and Caribbean States (CELAC), has also taken steps toward building a strategic trade relationship with China. The ECLAC executive secretary underscored that the trade of goods between Latin America and the Caribbean and China expanded by 23 times between 2000 and 2013, "although two years of declines followed that," the report relays. Despite this, Ms. Barcena noted that the "Asian giant" displaced the European Union in 2014 as the region's second-biggest trading partner, exceeded only by the United States, the report notes. However, Ms. Barcena said the export basket is concentrated in five products that together represented 69 percent of the value of the region's shipments to the Asian country in 2015, the report discloses. In the area of investments, she stressed the quantitative leap that the Asian country experienced in 2010, when, in that year alone, estimated Chinese Foreign Direct Investment (FDI) in Latin America and the Caribbean rose to 14 billion dollars, doubling the cumulative figure from the prior two decades (1990-2009), the report relays. During her participation at the World Economic Forum (WEF), Ms. Barcena also participated in panels on policies for inclusive productivity, and on economic growth and social inclusion in Latin American and the Caribbean, the report notes. In this last session, she underlined the importance of strengthening innovation through public-private alliances that allow experiences to be shared "so as to foster productivity with social inclusion," according to ECLAC, the report says. During the conference, ECLAC said Ms. Barcena also spoke on the impact of the fourth industrial revolution on competitiveness, the regional challenges regarding the digital economy, the role of extractive industries in a context of collaboration for the 2030 United Nations Agenda, and the efforts by regional countries to achieve the UN's Sustainable Development Goals (SDGs), the report adds. LATAM: Sovereign Outlook is Neg. on Tepid Growth, Moody's Says -------------------------------------------------------------- The credit drivers for sovereign creditors in Latin America and the Caribbean are negative due to the weak global economic environment and still-depressed commodity prices, says Moody's Investors Service in a report. Rising debt levels and the prospect of higher global interest rates are also impacting credit prospects. Eight of the 29 Moody's-rated Latin American sovereigns ended 2016 with a negative outlook, while only three countries had a positive outlook. In 2015, only six sovereigns had a negative outlook and another four had positive outlooks on their ratings. Economic growth in the region will likely average only 0.9% in 2016-18, driven largely by the weakness in Brazil and Argentina, two of the region's largest economies. That's well below the recent average of 3% achieved during the five-year period of 2010- 15. "Given some improvement in commodity prices and the rating actions already taken, we expect negative credit trends to be contained in 2017, relative to last year," said Samar Maziad, a Vice President and Senior Analyst at Moody's. "Nonetheless, we expect the creditworthiness of a number of sovereigns to deteriorate further." Of the 29 Latin American sovereigns that Moody's rates, Brazil (Ba2 negative), Ecuador (B3 stable), Trinidad & Tobago (Baa3 negative) and Venezuela (Caa3 negative) will experience the weakest growth and struggle with the related credit challenges in 2017 to 2018. Moody's expects debt levels to rise in Argentina (B3 stable) and Brazil, as fiscal consolidation remains challenging and insufficient to reverse negative trends. Going forward, Moody's expects that large fiscal deficits and high debt ratios will continue to constrain policy options for many of the region's sovereigns. Despite weaker growth in many countries, the authorities will be limited in their ability to initiate, or accelerate, easier monetary policy in 2017 due to higher global interest rates and volatile capital flows. This will curb growth and contribute to higher interest costs on domestic debt. Mexico (A3 negative) is exposed to a potential shift in US trade policies and related uncertainty, which will be a drag on investment and growth in 2017. However, recent tax reforms have compensated for loss of oil-related revenues, improving the resilience of the sovereign's credit profile to shocks. *********** 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, Ivy B. Magdadaro, Julie Anne L. Toledo, and Peter A. Chapman, Editors. Copyright 2017. All rights reserved. ISSN 1529-2746. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Latin America subscription rate is US$775 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter A. Chapman at 215-945-7000 or Nina Novak at 202-362-8552. * * * End of Transmission * * *