/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170310.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, March 10, 2017, Vol. 18, No. 50 Headlines A R G E N T I N A YPF SA: Signs Vaca Muerta Shale Agreement with Shell B R A Z I L CHINA CONSTRUCTION: S&P Maintains 'B+/B' Ratings on Watch Negative MARFRIG GLOBAL: Fitch Rates Proposed USD750MM Notes Issuance BB- MARB BONDCO: S&P Assigns 'B+' Rating on Proposed Sr. Notes OI SA: Orascom Gives Firm One Month to Amend Reorganization Plan C A Y M A N I S L A N D S AIS SELECT: Shareholders Receive Wind-Up Report AIS SELECT MASTER: Shareholders Receive Wind-Up Report ALPHA4X CAPITAL: Shareholders Receive Wind-Up Report ALPHA4X OFFSHORE: Shareholders Receive Wind-Up Report ALPHA4X OFFSHORE 2: Shareholders Receive Wind-Up Report CLINTON MAGNOLIA: Shareholders Receive Wind-Up Report CLINTON MAGNOLIA MASTER: Shareholders Receive Wind-Up Report FULL CIRCLE: Shareholders Receive Wind-Up Report FURFOUR (CAYMAN): Shareholders Receive Wind-Up Report FURFIVE (CAYMAN): Shareholders Receive Wind-Up Report FURTHREE (CAYMAN): Shareholders Receive Wind-Up Report GOCM OFFSHORE: Shareholders Receive Wind-Up Report MIDWOOD CAPITAL: Shareholders Receive Wind-Up Report MIDWOOD CAPITAL MASTER: Shareholders Receive Wind-Up Report NIGHTWATCH CAPITAL: Shareholders Receive Wind-Up Report SSCG AFRICA: Shareholders Receive Wind-Up Report TELLURIAN COMMODITY: Shareholders Receive Wind-Up Report TELLURIAN COMMODITY MASTER: Shareholders Receive Wind-Up Report VELA ENTERPRISES: Shareholders Receive Wind-Up Report WATERSTONE MARKET: Shareholders Receive Wind-Up Report D O M I N I C A N R E P U B L I C DOMINICAN REP: Valle Nuevo's recovery 'Can't be Halted Any Longer' J A M A I C A CABLE & WIRELESS: Another Financial Loss for Jamaica Unit JAMAICA: May Get Add'l US$170MM from Economic Program with IMF M E X I C O BANCO AHORRO: Fitch Cuts Counterparty Risk Ratings to 'BB(mex)' BANCO MERCANTIL: S&P Raises Rating on $120MM Hybrid Notes to 'BB+' - - - - - ================= A R G E N T I N A ================= YPF SA: Signs Vaca Muerta Shale Agreement with Shell ---------------------------------------------------- Yahoo News reports that Argentina's state-controlled energy company YPF S.A. recently signed a preliminary agreement with the Anglo Dutch oil giant Royal Dutch Shell PLC RDS.A. The move aims to ramp up the development of Vaca Muerta Shale's oil and gas assets, according to Yahoo News. A pilot project has been planned in Bajada de Anelo area of Vaca Muerta Shale, the report notes. The project will be equally owned by Shell and YPF, the report relates. Shell will invest $300 million, in two phases, in the project, the report discloses. The deal is subject to approval of provincial authorities. The report says that the preliminary deal was announced a month after the President of Argentina, Mauricio Macri, signed an agreement with the oil companies aiming to boost investment in Vaca Muerta Shale. The deal is likely to reduce imports of costly gas and lower the nation's energy deficit, the report notes. A total of $5 billion investment has been made to tap energy sources in Vaca Muerta shale by oil companies like Chevron Corp. CVX, BP plc BP and Total S.A. along with YPF and Shell, the report notes. YPF intends to invest $2.3 billion in Vaca Muerta Shale this year, according to Yahoo News. Shell would be investing $300 million every year till 2020 in Argentina for exploration, refining, distribution and marketing of oil and gas, the report notes. It is expected that that this deal will boost Shell's strong and diversified portfolio of global energy by providing ample growth opportunities, the report discloses. YPF is a vertically integrated company, engaged in the production, exploration, refining and marketing of gas and petroleum products, the report adds. The company currently carries a Zacks Rank #3 (Hold). As reported in the Troubled Company Reporter-Latin America on Jan. 20, 2017, Fitch Ratings affirmed the Foreign and Local Currency (LC/FC) Issuer Default Ratings of YPF S.A. at 'B'. The Rating Outlook is Stable. Additionally, Fitch has affirmed the company's long-term international senior unsecured bonds at 'B/RR4'. =========== B R A Z I L =========== CHINA CONSTRUCTION: S&P Maintains 'B+/B' Ratings on Watch Negative ------------------------------------------------------------------ S&P Global Ratings maintained its 'B+/B' global scale and 'brBBB' national scale ratings on China Construction Bank (Brasil) Banco Multiplo S.A. (CCB Brasil) on CreditWatch developing. "We're maintaining the ratings on CreditWatch developing because we're still analyzing CCB Brasil's capital plan that seeks to improve its Tier I regulatory capital ratio above minimum required level. According to the central bank's September 2016 figures, CCB Brasil's Tier I ratio was exactly at the regulatory minimum of 6.0%. The ratio's decline was due to the bank's losses in the past three years, stemming from deleveraging of its portfolio amid asset quality deterioration. However, the ratio doesn't include the deferred tax assets' impairment as part of the June 2016 financial statement. We estimate that after the adjustment, CCB Brasil's Tier I ratio should be around 5.0%, thus lower than the regulatory minimum. Still, CCB Brasil has been taking several actions to enhance its capital position with the support of its parent, which could return the former's Tier I ratios above the minimum by the end of 2016," S&P said. S&P continues to consider that CCB Brasil has strategic importance to China Construction Bank Corp. (A/Stable/A-1) because S&P believes that the subsidiary provides a key channel for the group to operate in the Brazilian market, where it intends to explore business opportunities with companies that are engaged in the large-scale trade between Brazil and China. Therefore, S&P expects the parent to provide extraordinary support to its Brazilian subsidiary in order to recapitalize its Tier I ratio. MARFRIG GLOBAL: Fitch Rates Proposed USD750MM Notes Issuance BB- ---------------------------------------------------------------- Fitch Ratings has assigned a 'BB-(EXP)' rating to Marfrig Global Foods S.A.'s proposed USD750 million issuance of global notes. The proposed senior unsecured global notes will mature in 2024. The notes will be issued through its wholly owned subsidiary, MARB BondCo PLC and will be unconditionally and irrevocably guaranteed by Marfrig, Marfrig Holdings (Europe) BV and Marfrig Overseas. Proceeds will be used to refinance the notes due in 2018 and 2020 and for general corporate purposes. KEY RATING DRIVERS Positive FCF Fitch expects Marfrig's free cash flow (FCF) to be around BRL100 million in 2017 compared to the reported BRL 44 million in 2016. Factors driving the improvement will be lower overall interest expenses due to refinancing, interest savings from the mandatory debt conversion to equity, and improved performance of the Keystone division. Favorable Business Profile Marfrig's ratings continue to incorporate its broad product and geographic diversification, which help to reduce risks related to disease, trade restrictions and currency fluctuation. The company is structured in two business units. Beef (45% of EBITDA in 2016) is one of the world's largest beef producers, and Keystone Foods (55% of EBITDA in 2016) is a global supplier to foodservice restaurant chains (McDonald's represents about 56% of sales). Challenging Domestic Environment for Beef The rising Brazilian real against the U.S. dollar, the weak consumer environment in Brazil, and the high cost of cattle in that market made 2016 challenging for companies in the Brazilian protein sector. The industry adjusted to this environment by reducing capacity in an effort to improve utilization rates. Prices have also been increasing to offset the high cost faced by protein companies. Price adjustments should drive gradual recovery in margin in 2017. Keystone's revenues increased by 4,4% to BRL9.4 billion in 2016 while margins improved to 9.3% from 8.0% a year ago. No Major Acquisitions Anticipated Fitch does not foresee any major acquisitions for Marfrig over the next 12 months. The company's management is focused on deleveraging its balance sheet, improving free cash flow generation and reducing interest expense. Key initiatives will be the optimization of plants and distribution by Beef and the geographic expansion of Keystone while reducing interest expenses. KEY ASSUMPTIONS -- Total revenues of about BRL19.8 billion in 2017; -- EBITDA margin stabilizes at around 9%; -- Steady capex in 2017 compared to 2016; -- Cash interest paid reduction of BRL280 million after 2017 reflecting the conversion of the debentures in January 2017; -- Net debt/EBITDA around 3x in the next couple of years. RATING SENSITIVITIES A downgrade could be precipitated by Marfrig's inability to improve FCF over the next 24 months and maintain net leverage above 5x on a sustainable basis. An upgrade could result from a track record of generating positive FCF, demonstrating the resilience of its group's operating margin in its Beef business in Brazil and substantial decrease in gross and net leverage to below 4.5x and 3.0x, respectively, on a sustained basis LIQUIDITY Marfrig's liquidity is strong after its divestment cycle. As of December 2016, the group held BRL5.3 billion of cash and marketable securities compared with short-term debt of BRL1.5 billion. The company continues to be actively engaged in liability management to reduce debt and interest expense. In the first half of 2016, Marfrig issued USD1 billion to refinance existing bonds. Around 94% of the company's debt is in U.S. dollars and foreign currencies (excluding the real) while 75% of its EBITDA is pegged to currencies other than the BRL. FULL LIST OF RATING ACTIONS Fitch currently rates Marfrig as follows: Marfrig Global Foods S.A.: -- Long-Term Foreign and Local Currency Issuer Default Ratings 'BB-'; Outlook Stable; -- Long-Term National Scale rating 'A(bra)'; Outlook Stable. MARB BondCo PLC: -- Notes due 2024 'BB-(EXP) '. Marfrig Holdings (Europe) B.V.: -- Notes due 2018, 2019, 2021, 2023 'BB-'. MARB BONDCO: S&P Assigns 'B+' Rating on Proposed Sr. Notes ---------------------------------------------------------- S&P Global Ratings assigned its 'B+' issue-level rating and recovery rating of '4' to MARB BondCo Plc.'s proposed senior unsecured notes. The parent, Marfrig Global Foods S.A. (B+/Positive/--), will fully and unconditionally guarantee the notes, and will use the net proceeds for debt refinancing and to fund the announced tender offers for any and all of Marfrig Holdings Europe B.V.'s outstanding notes due 2018 and Marfrig Overseas Ltd.'s notes due 2020. Marfrig will use any remaining cash proceeds to repay more expensive debt and extend debt maturity profile. Therefore, S&P don't expect the issuance to affect Marfrig's leverage ratios. S&P don't expect significant changes in the company's capital structure and in the premises of S&P's recovery analysis from last review in Oct. 21, 2016. Therefore, the recovery rating assigned to the proposed unsecured notes is '4', which indicates an average recovery expectation between 30%-50%. RATINGS LIST Marfrig Global Foods S.A. Corporate credit rating B+/Positive/-- Ratings Assigned MARB BondCo Plc. Sr. unsec. notes B+ Recovery rating 4(30%) OI SA: Orascom Gives Firm One Month to Amend Reorganization Plan ---------------------------------------------------------------- Ana Mano at Reuters reports that Orascom TMT Holdings SAE and a group of bondholders have given Oi SA another month to amend a reorganization plan, in a move that could help accelerate the Brazilian telephone carrier's exit from bankruptcy protection. In a joint statement, Orascom and the bondholders said a list of suggestions to amend the plan will be valid through March 31, according to Reuters. The suggestions had expired on Feb. 28. Reuters reported the one-month extension earlier. The Oi media office declined to comment. Under terms of the December proposal, Orascom and the bondholders, who are represented by Moelis & Co, vowed to pump as much as $1.25 billion into Oi, take immediate control of the carrier and reorganize the company, the report notes. Other creditor groups have lashed out at the proposal, saying it only seeks to favor one, smaller class of Oi bondholders, the report relays. Extending the deadline should buy time for the bond firms and billionaire Naguib Sawiris, who controls Orascom, to discuss the fate of the carrier with shareholders, trumping rival offers for Oi, the report discloses. Orascom and the bondholders "are currently considering potential refinements to the alternative plan based on input received from other creditors and stakeholders," the statement said, the report notes. The group, however, remains "concerned with the deterioration of the company's business . . . . and the impact that further delays could have on the prospects for a successful turnaround," according to the statement obtained by the news agency. The Oi reorganization process, which began in June, has been marked by a series of disputes between creditors and shareholders over the fate of Brazil's No. 4 wireless carrier, the report notes. The government has threatened to intervene should Oi stakeholders fail to reach an agreement, the report discloses. The Orascom-bondholder group has committed to underwriting the entire capital injection if no other investors step forward, the report relays. In exchange, the new money providers would be entitled to a 7.5 percent backstop fee, the report discloses. As part of the Orascom-backed plan, Oi was asked to agree to a debt-for-equity swap involving BRL24.82 billion ($7.9 billion) worth of bond debt, which would be exchanged for a 95 percent stake in the debt-laden carrier, the report adds. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 24, 2017, S&P Global Ratings affirmed its 'D' corporate credit and issue-level global and national scale ratings on Oi S.A. At the same time, S&P withdrew the recovery ratings on the company's rated debt, until it has an updated capital structure once Oi emerges from judicial reorganization. ========================== C A Y M A N I S L A N D S ========================== AIS SELECT: Shareholders Receive Wind-Up Report ----------------------------------------------- The shareholders of AIS Select - Commodities Limited received on Jan. 25, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Matthew Wright c/o Omar Grant Windward 1, Regatta Office Park P.O. Box 897 Grand Cayman KY1-1103 Cayman Islands Telephone: (345) 949-7576 Facsimile: (345) 949-8295 AIS SELECT MASTER: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of AIS Select - Commodities Master Limited received on Jan. 25, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Matthew Wright c/o Omar Grant Windward 1, Regatta Office Park P.O. Box 897 Grand Cayman KY1-1103 Cayman Islands Telephone: (345) 949-7576 Facsimile: (345) 949-8295 ALPHA4X CAPITAL: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Alpha4x Capital Growth Fund received on Jan. 30, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan dms House 20 Genesis Close George Town P.O. Box 1344 KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 ALPHA4X OFFSHORE: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Alpha4x Offshore Feeder Fund received on Jan. 30, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan dms House 20 Genesis Close George Town P.O. Box 1344 KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 ALPHA4X OFFSHORE 2: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Alpha4x Offshore Feeder Fund 2 received on Jan. 30, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan dms House 20 Genesis Close George Town P.O. Box 1344 KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 CLINTON MAGNOLIA: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Clinton Magnolia Fund, Ltd. received on Jan. 30, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan dms House 20 Genesis Close George Town P.O. Box 1344 KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 CLINTON MAGNOLIA MASTER: Shareholders Receive Wind-Up Report ------------------------------------------------------------ The shareholders of Clinton Magnolia Master Fund, Ltd. received on Jan. 30, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan dms House 20 Genesis Close George Town P.O. Box 1344 KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 FULL CIRCLE: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of Full Circle Fund, Ltd. received on Jan. 30, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan dms House 20 Genesis Close George Town P.O. Box 1344 KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 FURFOUR (CAYMAN): Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Furfour (Cayman) Limited received on Jan. 26, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Matthew Wright c/o Omar Grant Windward 1, Regatta Office Park P.O. Box 897 Grand Cayman KY1-1103 Cayman Islands Telephone: (345) 949-7576 Facsimile: (345) 949-8295 FURFIVE (CAYMAN): Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Furfive (Cayman) Limited received on Jan. 26, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Matthew Wright c/o Omar Grant Windward 1, Regatta Office Park P.O. Box 897 Grand Cayman KY1-1103 Cayman Islands Telephone: (345) 949-7576 Facsimile: (345) 949-8295 FURTHREE (CAYMAN): Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of Furthree (Cayman) Limited received on Jan. 26, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Matthew Wright c/o Omar Grant Windward 1, Regatta Office Park P.O. Box 897 Grand Cayman KY1-1103 Cayman Islands Telephone: (345) 949-7576 Facsimile: (345) 949-8295 GOCM OFFSHORE: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of GOCM Offshore Fund, Ltd. received on Jan. 30, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan dms House 20 Genesis Close George Town P.O. Box 1344 KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 MIDWOOD CAPITAL: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Midwood Capital Partners Offshore Fund, Ltd. received on Jan. 30, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan dms House 20 Genesis Close George Town P.O. Box 1344 KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 MIDWOOD CAPITAL MASTER: Shareholders Receive Wind-Up Report ----------------------------------------------------------- The shareholders of Midwood Capital Partners Master Fund, LP received on Jan. 30, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan dms House 20 Genesis Close George Town P.O. Box 1344 KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 NIGHTWATCH CAPITAL: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Nightwatch Capital Partners (Cayman) Ltd. received on Jan. 30, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan dms House 20 Genesis Close George Town P.O. Box 1344 KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 SSCG AFRICA: Shareholders Receive Wind-Up Report ------------------------------------------------ The shareholders of SSCG Africa Opportunities Fund Ltd. received on Jan. 30, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan dms House 20 Genesis Close George Town P.O. Box 1344 KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 TELLURIAN COMMODITY: Shareholders Receive Wind-Up Report -------------------------------------------------------- The shareholders of Tellurian Commodity Ascend Fund Limited received on Jan. 30, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan dms House 20 Genesis Close George Town P.O. Box 1344 KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 TELLURIAN COMMODITY MASTER: Shareholders Receive Wind-Up Report --------------------------------------------------------------- The shareholders of Tellurian Commodity Ascend Master Fund Limited received on Jan. 30, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan dms House 20 Genesis Close George Town P.O. Box 1344 KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 VELA ENTERPRISES: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Vela Enterprises Limited received on Jan. 30, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan dms House, 20 Genesis Close George Town P.O. Box 1344 KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 WATERSTONE MARKET: Shareholders Receive Wind-Up Report ------------------------------------------------------ The shareholders of Waterstone Market Neutral Offshore Fund, Ltd. received on Jan. 30, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: DMS Corporate Services Ltd. c/o Norman Chan dms House 20 Genesis Close George Town P.O. Box 1344 KY1-1108 Cayman Islands Telephone: (345) 946 7665 Facsimile: (345) 949 2877 =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REP: Valle Nuevo's recovery 'Can't be Halted Any Longer' ------------------------------------------------------------------ Dominican Today reports that Environment minister Francisco Dominguez reiterated that Valle Nuevo's recovery can neither be halted nor delayed any longer. Minister Dominguez also warned that there'll be no new constructions within the protected area, according to Dominican Today. "It's true that farmers who were dedicated to the extensive and intensive production at Valle Nuevo have left, that they can no longer do agriculture, that are dismantling all the pipes, but even more true is the need for the Dominican Republic to protect its waters because without water there is no life, there's no future," said the official, the report notes. Speaking in a gathering of the Dominican Republic Industries Association (AIRD), Dominguez said business leaders have realized that Valle Nuevo's situation is a national problem because 7 of every 10 Dominicans is supplied with the water produced in Valle Nuevo, the report relays. Sustainable Development AIRD President Campos de Moya and Dominguez headed a dialogue on the environment and sustainable development, in which the industrial sector stated its interest in the recovery of the country's protected areas, specifically those most threatened: Los Haitises, Sierra de Bahoruco and Sierra de Neiba national parks, the report adds. 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'. ============= J A M A I C A ============= CABLE & WIRELESS: Another Financial Loss for Jamaica Unit --------------------------------------------------------- RJR News reports that despite an increase in revenue during the April to December period, Cable and Wireless Jamaica racked up another big financial loss. Revenues were up by more than J$2 billion, or twelve per cent, primarily driven by a nine per cent growth in mobile subscribers, according to RJR News. However, Cable and Wireless ended the nine months with a J$1.5 billion loss, the report notes. Operating costs were up by $1.8 billion or 15 per cent, due in part to higher direct costs and an increase in administration, marketing and selling expenses, the report relays. While the company's mobile business recorded improved performance, it was a different scenario for the broadband segment, with revenues in the latter segment declined during the nine months, the report discloses. Fixed voice business was up four per cent due to a 63 per cent increase in international revenue while national revenue declined by 19 per cent, the report notes. As reported in the Troubled Company Reporter-Latin America on Sept. 12, 2016, Caribbean360.com reports that minority share- holders of Cable & Wireless Jamaica have defied the board of directors and voted against a resolution to set pay for auditor KPMG. Their move was aimed at making a wider point on transparency. Voting on the resolution was adjourned for 30 days when C&WJ shareholders can vote via poll on the matter, according to Caribbean360.com. On Feb. 16, 2015, TCRLA, citing RJR News, reported that restructuring and legal costs during the October to December quarter resulted in Cable & Wireless Jamaica racking up a huge financial loss. The company incurred J$1.5 billion in operating exceptional items during the three months, according to RJR News. As a result, it ended the period with a J$1.89 billion loss, the report relates. Revenues increased by 14 per cent to J$5.6 billion. JAMAICA: May Get Add'l US$170MM from Economic Program with IMF -------------------------------------------------------------- An International Monetary Fund (IMF) staff team led by Uma Ramakrishnan visited Jamaica from February 20 to March 3, 2017, to conduct discussions on the first review of Jamaica's financial and economic program supported by the IMF's precautionary Stand-By Arrangement (SBA). The program was approved by the IMF's Executive Board on November 11, 2016. At the end of the visit, IMF Mission Chief, Ms. Ramakrishnan issued the following statement in Kingston: "The IMF team reached a preliminary agreement with the authorities on a set of policies that aims at completing the first review under the SBA. Consideration by the IMF's Executive Board is tentatively scheduled for April 2017. Upon approval, an additional SDR 126 million (about US$170 million) will be made available for Jamaica, bringing the total accessible credit to about US$574 million. The Jamaican authorities continue to view the SBA as precautionary, and use it as an insurance policy against unforeseen external economic shocks beyond Jamaica's control. "The SBA is off to a strong start -- program conditions through December were met, with tax revenues and international reserves exceeding expectations; and structural reforms are taking hold. "With 7 consecutive quarters of positive growth, the Jamaican economy is on track to reach a growth rate of 1.7 percent in FY2016/17. Growth is projected to continue improving to 2.1 percent in FY2017/18, bolstered by construction, increased room capacity in the tourism sector, business process outsourcing, and a recovery in mining. The current account deficit is down to about 3 percent of GDP, supporting robust growth in non-borrowed reserves, which reached almost US$1.8 billion by end-February. Employment is steadily improving but the unemployment rate remains high at 12.9 percent, reflecting an expanding labor force. "The FY17/18 budget tabled in Parliament targets a central government primary surplus of 7 percent of GDP. On the revenue side, the shift from direct to indirect taxes continues with the second phase of the personal income tax (PIT) reform that raises the PIT exemption threshold to J$1.5 million. The government underlined its commitment to supporting this reform with a revenue-neutral tax package that maintains fairness, progressivity and efficiency. To insulate Jamaica's poorest citizens from the effects of these changes in tax policy, the government has significantly increased its budget allocation for social protection programs such as PATH. The budget also frees up resources for growth-enhancing capital spending by continuing the government's prudent approach to public sector wage and employment policy. "Steadfast implementation of the government's reform program is essential for continued macroeconomic stability, growth and job creation. This will require a sustained, multi-year focus on improving public sector efficiency and maintaining the government's wage bill on a firm downward path. Next steps include passing the pension bill and rolling out an early retirement program, finalizing the medium-term compensation policy for government workers, consolidating public bodies, and accelerating the introduction of the human resources software. "Further enhancing financial sector supervision and crisis preparedness, including through the adoption of a robust crisis resolution framework, are near-term priorities.Increasing the operational autonomy and accountability of the BOJ and improving the ways in which it interacts in the currency markets to make those interactions more efficient and more market-based will support the intended transition to an inflation targeting framework for monetary policy "The IMF team met with Prime Minister Andrew Holness, Finance Minister Audley Shaw, Bank of Jamaica Governor Brian Wynter, State Minister Fayval Williams, Ambassador of Economic Affairs Nigel Clarke, Financial Secretary Everton McFarlane, Planning Institute Director General, Wayne Henry, senior government officials, as well as members of the private sector, labor unions and civil society. The mission would like to thank the Jamaican authorities for their hospitality and collaboration." =========== M E X I C O =========== BANCO AHORRO: Fitch Cuts Counterparty Risk Ratings to 'BB(mex)' --------------------------------------------------------------- Fitch Ratings downgraded national scale counterparty risk ratings for the long and short term of Banco Ahorro Famsa, SA, Multiple Banking Institution (BAF) to 'BB (mex)' and 'B (Mex) 'from' BBB- (mex) 'and' F3 (mex) ', respectively. The outlook for the long- term rating is stable. The decline in BAF's ratings and the stable outlook result from the shares held by its ultimate holding company Famsa, SAB de CV (Famsa Group) whose long-term rating on a global scale depreciated to 'B-' from 'B ' and on a national scale to' BB (mex) 'from' BBB- (mex) ', the Long-term Rating Outlook is Stable. Stable Outlook "dated March 3, 2017. BAF's ratings are aligned with those of Grupo Famsa as a fundamental subsidiary for the latter. If the group continues to deteriorate it would also cause detriments in the bank's intrinsic financial profile due to the close link between its operations and business model. Therefore, any rating action in the group would result in an action of the same magnitude and meaning in BAF. KEY FACTORS OF THE QUALIFICATIONS BAF's ratings derive from Grupo Famsa's strong propensity to support the bank, if required. However, Fitch believes that the group's ability to support the bank is adjusted, given the operational and financial challenges facing the corporate; Situation that could limit the sufficiency and opportunity of support if the bank required it. The propensity to provide support is strong due to the strong commercial, operational and financial synergies maintained by the bank and the corporate. They also share business identity and reputation risk. They also show a clear integration in terms of corporate governance bodies. In addition, the propensity is also evidenced by recurrent capital injections and the high linkage of the business model of the bank with that of Grupo Famsa. About 40% of its total revenues originate within the group for commissions charged for the use of infrastructure, referencing customers, buying at portfolio discount, collection rights, among others. SENSITIVITY OF THE QUALIFICATIONS BAF's ratings could be lowered due to a decrease in Grupo Famsa's propensity for support. BAF's ratings will remain in line with those of the group as long as, in Fitch's opinion, the bank is considered as a fundamental subsidiary for its holding company, so a change in Grupo Famsa's ratings would cause movements in the same direction BAF. BANCO MERCANTIL: S&P Raises Rating on $120MM Hybrid Notes to 'BB+' ------------------------------------------------------------------ S&P Global Ratings said that it affirmed its 'BBB+' long-term and 'A-2' short-term global scale ratings on Banco Mercantil del Norte S.A. Institucion de Banca Multiple Grupo Financiero Banorte (Banorte). S&P also affirmed its 'mxAAA' long-term and 'mxA-1+' short-term national scale ratings. The outlook on the global scale ratings remains negative, which reflects that on the sovereign, and on the national scale ratings remains stable. As a result of its risk-adjusted capitalization strength, S&P is revising Banorte's stand-alone credit profile (SACP) and the unsupported group's credit profile (GCP) to 'bbb+' from 'bbb'. Consequently, S&P is also raising its issue-level ratings on its $120 million junior subordinated hybrid notes due 2020 to 'BB+' from 'BB', because S&P uses the SACP as the reference point for the notching of these notes. Finally, S&P affirmed its 'mxAAA' long and 'mxA-1+' short-term issuer credit ratings on its core entity and securities firm, Casa de Bolsa Banorte Ixe, S.A. de C.V., Grupo Financiero Banorte y Subsidiarias. The outlook remains stable. "The negative outlook on Banorte's global scale issuer credit rating reflects that on the sovereign, because the ratings on the former are at the same level as those on Mexico," said S&P Global Ratings credit analyst Arturo Sanchez. S&P's outlook also incorporates that Banorte will continue to grow its business volumes in the next 18-24 months, NPAs and credit losses will be manageable, and the bank won't undertake further acquisitions. In the next two years, a downgrade could occur if S&P was to lower the sovereign ratings on Mexico. A downgrade could also occur if S&P revises Banorte's SACP downward by two or more notches. Nonetheless, S&P views this scenario as unlikely over the next 24 months. S&P could revise the outlook to stable over the next 18-24 months if there is a similar action on the ratings on Mexico, while the SACP remains unchanged. *********** 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, Ivy B. Magdadaro, 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 * * *