/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170320.mbx T R O U B L E D C O M P A N Y R E P O R T E R L A T I N A M E R I C A Monday, March 20, 2017, Vol. 18, No. 56 Headlines A R G E N T I N A PROVINCE OF SANTA FE: Fitch Rates Proposed Sr. Unsec. Bond 'B' B A R B A D O S BARBADOS: Now on the Same Level With Greece on Debt B R A Z I L BANCO ABC: Moody's Changes Outlook on Ba3 Deposit Rating to Stable BANCO BBM: Moody's Affirms Ba1 Sr. Debt Rating, Outlook Stable BANCO SANTANDER: Moody's Assigns Ba3 Rating to Two Debt Issuances GRUPO SCHAHIN: Defeats Itau Challenge to Debt Plan STATE OF PARANA: Moody's Affirms Ba3 GS Rating, Outlook Stable STATE OF SAO PAULO: Moody's Affirms Ba2 GS Rating, Outlook Stable VISION SECURITIZADORA: Fitch Withdraws 'BBsf(bra)' CRIS Rating C A Y M A N I S L A N D S ALFA HOLDINGS: Shareholders Receive Wind-Up Report BELLINI DESIGNS: Shareholders Receive Wind-Up Report CS SOLUTIONS: Shareholders' Final Meeting Set for March 21 DECISION INTERNATIONAL: Shareholders Receive Wind-Up Report DYNAMIC CORE: Members Receive Wind-Up Report EXTEN INVESTMENT: Members Receive Wind-Up Report FALCON RELATIVE: Shareholder Receives Wind-Up Report HVS III: Shareholders Receive Wind-Up Report HVS III PLUS: Shareholders Receive Wind-Up Report KODIAK OFFSHORE: Shareholders Receive Wind-Up Report LIBERTY HOLDINGS: Shareholders Receive Wind-Up Report MARKETVIEW GLOBAL: Members Receive Wind-Up Report MARKETVIEW MANAGEMENT: Members Receive Wind-Up Report MATTERHORN GLOBAL: Members Receive Wind-Up Report MATTERHORN GLOBAL GENERAL: Members Receive Wind-Up Report MC 1 - SPV 1: Shareholders Receive Wind-Up Report MODULA CAPITAL: Shareholders Receive Wind-Up Report PARTNERS CAPITAL: Shareholder Receives Wind-Up Report PELICANCROSS HOLDINGS: Shareholders Receive Wind-Up Report SCUTUM HOLDINGS: Shareholder Receives Wind-Up Report TEMPLETON LIMITED: Members Receive Wind-Up Report D O M I N I C A N R E P U B L I C * DOMINICAN REPUBLIC: Gasoline, Diesel Fall, Gases Unchanged J A M A I C A NATIONAL COMMERCIAL BANK: Suspends Charges to Dormant Accounts M E X I C O AXTEL SAB: Fitch Affirms BB- Long-Term IDR; Outlook Stable HIPOTECARIA SU: Fitch Holds 'D (mex)' National Scale Rating METROFINANCIERA SAPI: Fitch Affirms B- Long-Term IDRs MEXICO: January Industrial Production Held Up by Manufacturing X X X X X X X X X LATAM: Caribbean Warned to Prepare for More Severe Storms * BOND PRICING: For the Week From March 13 to March 17, 2017 - - - - - ================= A R G E N T I N A ================= PROVINCE OF SANTA FE: Fitch Rates Proposed Sr. Unsec. Bond 'B' -------------------------------------------------------------- Fitch Ratings has assigned an expected Long-Term Foreign-Currency Rating of 'B(EXP)' to the Province of Santa Fe, Argentina's upcoming senior unsecured bond issuance. KEY RATING DRIVERS The bond is rated at the same level as the Province of Santa Fe. Both ratings are capped by Argentina's country ceiling. The notes will be issued in USD for an amount of up to USD250 million, to accrue a fixed interest rate to be determined at issuance and payable on a semi-annual basis. The estimated final maturity of the bond is six years, with two annual amortizations starting in March 2022. The notes will be senior (direct, general, unconditional and unsubordinated) unsecured (will not have the benefit of any collateral) obligations of the Province of Santa Fe. Provincial Law No. 13,543 of 2016 authorized the issuance of debt of up to USD500 million. The notes will be the second issuance, since Santa Fe placed USD250 million on Oct. 25, 2016 (6.9% notes due 2027). The proceeds will be used by the province to finance public works projects, in areas such as roads, water and drainage, schools, hospitals and public housing. The issuance will be governed by the laws of the State of New York. Among the events of default, Fitch highlights the failure to pay debt principal for a period of 10 days and debt service for 30 days and failure to perform any payment when due having and aggregate principal amount equal or higher the equivalent to USD15 million. Santa Fe's Long-Term Foreign Currency Issuer Default Rating (IDR) reflects its low leverage, despite recent issuances, when compared to local and international peers as well as its solid and stable revenue system. The rating also considers the province's constrained but increasing fiscal and budgetary flexibility along with its relatively weak liquidity position, which is mitigated by a low refinancing risk. RATING SENSITIVITIES The final rating of Santa Fe's new bond is contingent upon the receipt of final documents conforming to information already received. Any change in the Province of Santa Fe's IDR could have a direct impact on the bond rating. =============== B A R B A D O S =============== BARBADOS: Now on the Same Level With Greece on Debt --------------------------------------------------- Caribbean360.com reports that Barbados' Prime Minister Freundel Stuart may not think much of the pronouncements of international ratings agencies, but the rest of the world is watching, with respected business publication Bloomberg reporting that the island's debt is the worst performer in emerging markets this year. Two weeks ago, six days after being hit with a credit ratings downgrade by Standard & Poor's, Moody's Investor Services downloaded the Barbados government's bond and issuer ratings to Caa3, placing it on the same level as the highly-indebted Greece and Ukraine, according to Caribbean360.com. The report notes that a senior analyst at Moody's, Samar Maziad, wrote: "We assess the likelihood of a credit event in the near- term as very high, given the lack of fiscal adjustment and increasingly limited financing options." In its report, Bloomberg said Barbados is now among the beleaguered group of countries whose dollar bonds yield more than 10 percent, Caribbean360.com relays. It pointed to the firing of Central Bank Governor Dr. Delisle Worrell last month, as among the factors that would have led to some concern among investors, the report says. The governor had publicly warned the government that it had to stop the practice of asking the Central Bank to print money to finance its deficit, the report discloses. Mr. Worrell was subsequently asked to hand in his resignation or be fired, and he had turned to the court in attempt to block his dismissal, the report relays. An injunction he obtained from the court was subsequently discharged and he was given his walking papers on February 24, the report notes. "The governor being fired would have rattled investors simply because it shows some kind of instability there at a policy-making level. The governor had started to come out about how bad it really is," Royal Bank of Canada economist Marla Dukharan told Bloomberg, adding that the 2-to-1 peg with the US dollar is starting to show cracks and an all-out balance of payments crisis is a possibility, the report relays. However, Finance Minister Chris Sinckler said he expects the reserves will rebound on inflows from foreign investors. He has also ruled out currency devaluation "next year or at any other time in the foreseeable future," the report notes. "That is simply not going to happen," he told a press conference late last month, says Caribbean360.com. An investment manager at Aberdeen Asset Management Andrew Stanners told Bloomberg that with only about $56 million in interest payments due, Barbados is unlikely to default on international debt this year. Instead, he said, the government will continue to rely on the Central Bank to print money, adding to levels of domestic debt, the report notes. "The risks are mounting," Mr. Stanners said, Caribbean360.com relays. "They probably can muddle through to 2018," he added. Despite the impact of the downgrades, Prime Minister Stuart has suggested that he is not interested in any ratings from external markers. After the S&P downgrade, but before the Moody's development -- which brought to 19 the number of downgrades recorded since his Democratic Labour Party came to power in 2008 -- Mr. Stuart said Barbados no longer needed external validation from "metropolitan capitals", the report recalls. "We seem now to be working ourselves back into a frame of mind where once again we want to sit exams for people outside of Barbados and wait on them to grade us and if they tell us we have passed we are supposed to feel good that we have passed, and when they tell us we have failed we are supposed to hold our heads in shame and think that we are failures," the report quoted Mr. Stuart as saying. As reported in the Troubled Company Reporter-Latin America on March 7, 2017, S&P Global Ratings lowered its long-term foreign and local currency sovereign ratings on Barbados to 'CCC+' from 'B-'. The outlook is negative. S&P also lowered the short-term ratings to 'C' from 'B.' At the same time, S&P lowered its transfer and convertibility assessment for Barbados to 'CCC+' from 'B-'. =========== B R A Z I L =========== BANCO ABC: Moody's Changes Outlook on Ba3 Deposit Rating to Stable ------------------------------------------------------------------ Moody's Investors Service has changed the outlooks to stable, from negative, of certain ratings of 30 Brazilian banks and their affiliates and the Brazilian stock and futures exchange BM&FBovespa S.A. In addition, Moody's affirmed all the affected ratings. These actions follow the change in outlook to stable, from negative, on Brazil's government bond rating of Ba2, on March 15, 2017. Specifically, Moody's revised the outlooks on the issuer and local currency deposit and foreign currency senior unsecured debt ratings of 16 domestically-owned banks that are constrained by Brazil's sovereign rating, as well as those of several foreign- owned banks and BM&F Bovespa that are above the sovereign. Moody's also changed the outlooks on the long-term global foreign currency deposit ratings that are capped by Brazil's Ba3 foreign currency deposit ceiling. At the same time, Moody's affirmed the ratings and baseline credit assessments of 19 Brazilian banks. RATINGS RATIONALE These rating actions were prompted by the change in outlook to stable, from negative, on Brazil's bond rating. Sovereign credit quality can directly affect the credit standing of other issuers domiciled within the country, and, more generally, tends to be associated with macroeconomic and financial market trends that affect all domestic issuers. Banks in particular exhibit strong credit interlinkages with their sovereign. As such, the change in Brazil's outlook to stable, from negative, reduced the risk of these financial institutions being downgraded in conjunction with a sovereign downgrade. Consequently, Moody's changed the outlooks on 18 entities' local currency deposit ratings, 3 local currency issuer ratings, 28 foreign currency deposit ratings, and 9 foreign currency senior unsecured debt ratings. At the same time, Moody's affirmed all ratings whose outlooks were revised, as well as the ratings and baseline credit assessments of 19 issuers. The affirmations consider that the credit fundamentals of the affected financial institutions remain sound despite the depth and duration of Brazil's recession. The stable outlooks consider that the underlying fundamentals of the affected issuers are stable and/or the affected ratings continue to be constrained by Brazil's sovereign rating or its country ceilings. The impact of the recession on Brazil's banking system, and in particular the banks affected by action, has been contained. The system-wide non-performing loan ratio remains moderate at 3.7%, up just 90 basis points from January 2015 while loan loss reserves total 6.5% of gross loans. In addition, Brazilian banks continue to post strong earnings notwithstanding mounting credit costs, with return on assets averaging 1.1%, and capitalization has remained stable. Strong liquidity and a largely domestic funding structure reduces the vulnerability of Brazilian banks to unexpected shocks from global markets, and will support the gradual expansion of lending activities. The recession finally appears to have bottomed out, laying the foundation for a modest recovery as business and consumer confidence improve. Nevertheless, banks will remain cautious in 2017; following a 3.5% contraction in 2016, credit markets are expected to expand by just 2% in the year. The lagging effects of the deep downturn over the past two years and the high level of unemployment will continue to pressure asset quality, but any further deterioration of the system-average problem loan ratio is expected to be limited. At the same time, profitability is expected to improve as declining domestic interest rates reduce funding costs, and credit costs begin to decrease, helping to compensate for still low business volumes. WHAT COULD CHANGE THE RATING -- DOWN/UP The affected ratings could face upward pressure if Brazil's government bond rating is upgraded and its country ceilings raised. Upward pressure could also depend upon an improvement in the issuers' credit fundamentals or Brazil's macroeconomic environment. On the other hand, if Brazil's government bond rating again faces downward pressures, the affected ratings would be negatively pressured as well. ENTITIES AFFECTED 1. Banco ABC Brasil S.A. 2. Banco Alfa de Investimento S.A. 3. Banco BBM S.A. 4. Banco Bradesco S.A. and Banco Bradesco S.A. Cayman Branch 5. Banco BTG Pactual S.A. 6. Banco Cetelem S.A. 7. Banco Citibank S.A. 8. Banco Cooperativo Sicredi S.A. 9. Banco Daycoval S.A. 10. Banco do Brasil S.A. and Banco Do Brasil S.A. (Cayman) 11. Banco do Estado de Sergipe S.A. 12. Banco do Estado do Para S.A. 13. Banco do Estado do Rio Grande do Sul S.A. 14. Banco do Nordeste do Brasil S.A. 15. Banco Ford S.A. 16. Banco GMAC S.A. 17. Banco Industrial do Brasil S.A. 18. Banco Mizuho do Brasil S.A. 19. BANCO NAC. DE DESENV. ECONOMICO E SOCIAL -- BNDES 20. Banco Psa Finance Brasil S.A. 21. Banco RCI Brasil S.A. 22. Banco Safra S.A. and Banco Safra S.A. (Cayman Branch) 23. Banco Santander (Brasil) S.A. and Banco Santander (Brasil) S.A. - Cayman Br 24. Banco Sofisa S.A. 25. Banco Votorantim S.A. and Banco Votorantim S.A. (Nassau Branch) 26. BM&FBovespa S.A. 27. Caixa Economica Federal (CAIXA) 28. China Construction Bank (Brasil) S.A. 29. ING Bank N.V. - Sao Paulo 30. Itau Unibanco Holding S.A. and Itau Unibanco Holding S.A. (Cayman Islands) 31. Itau Unibanco S.A. and Itau Unibanco S.A. (Cayman Branch) METHODOLOGIES The principal methodology used in rating Banco ABC Brasil S.A.; Banco Alfa de Investimento S.A.; Banco BBM S.A.; Banco Bradesco S.A. and Banco Bradesco S.A. Cayman Branch; Banco BTG Pactual S.A.; Banco Cetelem S.A.; Banco Citibank S.A.; Banco Cooperativo Sicredi S.A.; Banco Daycoval S.A.; Banco do Brasil S.A. and Banco Do Brasil S.A. (Cayman); Banco do Estado de Sergipe S.A.; Banco do Estado do Para S.A.; Banco do Estado do Rio Grande do Sul S.A.; Banco do Nordeste do Brasil S.A.; Banco Ford S.A.; Banco GMAC S.A.; Banco Industrial do Brasil S.A.; Banco Mizuho do Brasil S.A.; Banco Nac. Desenv. Economico e Social -- BNDES; Banco Psa Finance Brasil S.A.; Banco RCI Brasil S.A.; Banco Safra S.A. and Banco Safra S.A. (Cayman Branch); Banco Santander (Brasil) S.A. and Banco Santander (Brasil) S.A. - Cayman Br; Banco Sofisa S.A.; Banco Votorantim S.A. and Banco Votorantim S.A. (Nassau Branch); Caixa Economica Federal (CAIXA); China Construction Bank (Brasil) S.A; ING Bank N.V. - Sao Paulo; Itau Unibanco Holding S.A. and Itau Unibanco Holding S.A. (Cayman Islands) and Itau Unibanco S.A. and Itau Unibanco S.A. Cayman Branch, was Banks published in January 2016. The principal methodology used in rating BM&FBovespa S.A. was Securities Industry Service Providers published in February 2017. 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. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". 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. A list of the Affected Ratings is available at: http://bit.ly/2nzokgj BANCO BBM: Moody's Affirms Ba1 Sr. Debt Rating, Outlook Stable -------------------------------------------------------------- Moody's America Latina (MAL) has changed the outlooks to stable, from negative, of the local currency debt and/or issuer ratings assigned to Banco BBM S.A., Banco Daycoval S.A., BNDES Participacoes S.A. - BNDESPAR, Itausa -- Investimento Itau S.A., and BM&FBovespa S.A. At the same time, MAL affirmed all the affected ratings. These actions follow the announcements by Moody's Investors Service that it had changed the outlook on Brazil's Ba2 government bond rating to stable from negative and that it affirmed the baseline credit assessments of several of the affected entities on 15 March 2017 and 16 March 2017 respectively. For additional information on bank ratings, please refer to the webpage containing Moody's related announcements. The following are the Brazilian entities covered in this press release: - Banco BBM S.A. - Banco Daycoval S.A. - BNDES Participacoes S.A. - BNDESPAR - Itausa -- Investimento Itau S.A. - BM&FBovespa S.A. RATINGS RATIONALE These rating actions were prompted by the change in outlook to stable, from negative, on Brazil's bond rating. Sovereign credit quality can directly affect the credit standing of other issuers domiciled within the country, and, more generally, tends to be associated with macroeconomic and financial market trends that affect all domestic issuers. Banks in particular exhibit strong credit interlinkages with their sovereign. As such, the change in Brazil's outlook to stable, from negative, reduced the risk of these financial institutions being downgraded in conjunction with a sovereign downgrade. Consequently, Moody's changed the outlooks to stable, from negative, and affirmed all ratings whose outlooks were revised, as well as the Brazilian national scale ratings. The affirmations consider that the credit fundamentals of the affected entities remain sound despite the depth and duration of Brazil's recession. The stable outlooks consider that the underlying fundamentals of the affected issuers are stable and/or the affected ratings continue to be constrained by Brazil's sovereign rating or its country ceilings. The impact of the recession on Brazil's banking system, and in particular the banks affected by action, has been contained. The system-wide non-performing loan ratio remains moderate at 3.7%, up just 90 basis points from January 2015 while loan loss reserves total 6.5% of gross loans. In addition, Brazilian banks continue to post strong earnings notwithstanding mounting credit costs, with return on assets averaging 1.1%, and capitalization has remained stable. Strong liquidity and a largely domestic funding structure reduces the vulnerability of Brazilian banks to unexpected shocks from global markets, and will support the gradual expansion of lending activities. The recession finally appears to have bottomed out, laying the foundation for a modest recovery as business and consumer confidence improve. Nevertheless, banks will remain cautious in 2017; following a 3.5% contraction in 2016, credit markets are expected to expand by just 2% in the year. The lagging effects of the deep downturn over the past two years and the high level of unemployment will continue to pressure asset quality, but any further deterioration of the system-average problem loan ratio is expected to be limited. At the same time, profitability is expected to improve as declining domestic interest rates reduce funding costs, and credit costs decrease, helping to compensate for still low business volumes. WHAT COULD CHANGE THE RATING -- DOWN/UP The affected ratings could face upward pressure if Brazil's government bond rating is upgraded and its country ceilings raised. Upward pressure could also depend upon an improvement in the issuers' credit fundamentals or Brazil's macroeconomic environment. On the other hand, if Brazil's government bond rating again faces downward pressures, the affected ratings would be negatively pressured as well. The following ratings assigned to Banco BBM S.A. were affirmed: -- Long-term global local-currency senior unsecured debt rating of to Ba1; outlook changed to stable, from negative -- Long-term Brazilian national scale senior unsecured debt rating of Aaa.br The following ratings assigned to Banco Daycoval S.A. were affirmed: -- Long-term global local-currency senior unsecured debt rating of Ba2; outlook changed to stable, from negative -- Long-term global local-currency senior unsecured MTN rating of (P)Ba2 -- Long-term Brazilian national scale senior unsecured debt rating of Aa2.br -- Long-term Brazilian national scale senior unsecured MTN rating of Aa2.br The following ratings assigned to BM&FBovespa S.A. were affirmed: -- Long term global local currency senior unsecured debt rating of Ba1; outlook changed to stable, from negative -- Long term Brazilian national scale debt rating of Aaa.br The following ratings assigned to BNDES Participacoes S.A. - BNDESPAR were affirmed: -- Long-term global local-currency issuer rating of Ba2; outlook changed to stable, from negative -- Long-term global local-currency senior unsecured debt rating of Ba2; outlook changed to stable, from negative -- Long-term Brazilian national scale issuer rating of Aa1.br -- Long-term Brazilian national scale senior unsecured debt rating of Aa1.br The following ratings assigned to Itausa -- Investimento Itau S.A. were affirmed: -- Long-term global local-currency issuer rating of Ba3; outlook changed to stable, from negative -- Long-term Brazilian national scale issuer rating of A1.br The ratings of CCB Brasil Arrendamento Mercantil S.A. were not affected by this rating action. METHODOLOGIES USED The principal methodology used in rating Banco BBM S.A., Banco Daycoval S.A., BNDES Participacoes S.A. - BNDESPAR and Itausa -- Investimento Itau S.A., was Banks published in January 2016. The principal methodology used in rating BM&FBovespa S.A. was Securities Industry Service Providers, published in February 2017. 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. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". 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. BANCO SANTANDER: Moody's Assigns Ba3 Rating to Two Debt Issuances ----------------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo S.A. (MLA) has assigned a Ba3 global local currency senior debt rating and a Aaa.ar national scale debt rating to Banco Santander Rio S.A.'s Class 18 expected issuance of up to ARS 1,500 million, which will be due in 18 months, and Class 19 expected issuance up to ARS 1,500 million, which will be due in 36 months. The two issuances will not exceed a total of ARS 1,500 million. The outlook for all ratings is stable. The following ratings were assigned to Banco Santander Rio S.A.'s expected issuances: Class 18 up to ARS 1,500 million: Ba3 Global Local Currency Debt Rating Aaa.ar Argentina National Scale Local Currency Debt Rating Class 19 up to ARS 1,500 million: Ba3 Global Local Currency Debt Rating Aaa.ar Argentina National Scale Local Currency Debt Rating RATINGS RATIONALE Santander Rio's global scale ratings are constrained by Argentina's operating environment, which remains challenging despite various market-friendly policy reforms implemented by the new administration that are expected to result in a return to economic growth and a continued decline in inflation this year. The environmental challenges outweigh Santander Rio's sound financial fundamentals. The Ba3 global local currency debt rating of Santander R°o also incorporates the very high probability that the bank will receive financial support from its shareholder Banco Santander S.A. (Spain), rated baa1, in an event of stress. Notwithstanding the bank's speculative grade global scale rating, Santander Rio is one of the strongest credits in Argentina thanks to this expectation of support from its foreign parent, as reflected by its Aaa.ar national scale rating. In addition, the rating considers Santander Rio's growing range of products and customer base, which drives sound earnings generation capacity. The bank's diversified loan portfolio in the corporate and consumer lending segments, including a significant component of payroll lending, supports good asset quality. Payroll accounts also provide a base of inexpensive core deposit funding. Santander R°o planned acquisition of the retail business of Citibank in Argentina will be positive for the bank's business strategy and revenues. Though these benefits will be partially offset by negative impacts on capitalization and liquidity, both should nevertheless remain adequate. Once the agreement is approved by local regulators, which is anticipated in the first quarter of 2017, Santander Rio will be incorporating Citi's 500,000 retail clients and 70 offices to its network, strengthening its position as the largest private bank in Argentina. The acquisition will increase Santander Rio's profitability by giving it access to Citibank's high income retail client base. In addition to opportunities to cross sell to Citi's clients, including cash and wealth management services, Santander also expects to be able to realize meaningful operating synergies, which should allow it to achieve significant cost savings on the acquired operations. What could move the rating up or down An upgrade of the Argentine sovereign and a corresponding increase in Argentina's debt and deposit ceilings would put upward pressure on the bank's ratings, provided the bank continue to demonstrate sound operating performance and any deterioration in the banks' financial fundamentals is limited. Conversely, a downgrade of the Argentine sovereign could put downward pressure on the bank's ratings, but this is unlikely at this time given Argentina's positive outlook. 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. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". 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. GRUPO SCHAHIN: Defeats Itau Challenge to Debt Plan -------------------------------------------------- Ana Mano at Reuters reports that Grupo Schahin in a statement said it can execute a reorganization plan after an appeals court favored the ailing Brazilian engineering and rig-leasing conglomerate over disgruntled creditors, according to a statement. The reorganization, confirmed by a bankruptcy court a year ago, was challenged by a 13-bank consortium led by Itau Unibanco SA, the statement said, according to Reuters. The report notes that Grupo Schahin's reorganization foresees repayment of BRL6.5 billion ($2 billion) of defaulted debt over a 15-year period, without any deductions, the company said. After the Sao Paulo appeals court ruling, the repayment will be executed as planned, according to the statement, the report relays. Separately, the company said it had won a ruling in court to maintain the contract of its Vitoria 10.000 drill ship with state oil firm Petroleo Brasileiro SA, the report notes. Petrobras, as the company is known, had sought to stop renting the drillship, which is Schahin's last in operation and whose rental proceeds are included as collateral in the reorganization plan, the report discloses. The report relays that Mr. Schahin said in statement the contract with Petrobras will guarantee that Schahin can meet the terms of its plan, the statement said. STATE OF PARANA: Moody's Affirms Ba3 GS Rating, Outlook Stable -------------------------------------------------------------- Moody's America Latina has revised the rating outlook of the Brazilian states of Parana (Ba3/A1.br), Bahia (Ba3/A2.br), Maranhao (Ba3/A3.br), and of the Municipality of Rio de Janeiro (Ba2/Aa1.br) to stable from negative. All ratings have been affirmed. The ratings impacted are: State of Parana. Ratings affirmed at Ba3 (Global Scale, Local and Foreign Currency) and at A1.br (National Scale, Local and Foreign Currency), outlook changed to stable from negative State of Bahia. Ratings affirmed at Ba3 (Global Scale, Local Currency), and at A2.br (National Scale, Local Currency), outlook changed to stable from negative State of Maranhao. Rating saffirmed at Ba3 (Global Scale, Local and Foreign Currency) and at A3.br (National Scale, Local Currency), outlook changed to stable from negative Municipality of Rio de Janeiro. Ratings affirmed at Ba2 (Global Scale), and at Aa1.br (National Scale, Local Currency), outlook changed to stable from negative The action follows Moody's March 15, 2017 rating action in which the outlook for Brazil's government bond rating was revised to stable from negative. RATINGS RATIONALE The ratings affirmation coupled with the outlook change to stable from negative on the above ratings follows a similar rating action on Brazil's sovereign bonds ratings and reflects the very close economic and financial linkages that exist between Brazil's government and Brazilian sub-sovereigns governments. The rating action also reflects Moody's expectation that Brazilian states and municipalities will continue to focus on controlling spending and adapting their cost structure such as to allow a progressive stabilization of their fiscal balance, even in the absence of visible tax revenue week growth resulting from an incipient recovery in Brazil's economic growth expected in 2017. In Moody's view, the sustained improvement in the functioning of the country's legislative and executive institutions witnessed at the federal level will support achievement of structural reforms at the subnational level, that are needed for the rebalancing of their fiscal position. The agency notes in that regards that a successful execution of a pension reform driven at the federal level would support the implementation of similar reform at the level of states and municipalities as well, helping them to rebalance their fiscal position quicker. Moody's also notes that the assigned ratings are supported by a strong institutional framework and the close oversight of Brazil's federal government on states and municipalities in the country. The agency continues to view Brazil's institutional framework as a credit positive for states and municipalities relative to international peers. WHAT COULD CHANGE THE RATING UP/DOWN An upgrade of Brazil's sovereign bond rating could exert upward pressure on the assigned ratings. A sustained improvement in key financial metrics could lead to an upgrade of these issuers. Conversely, a downgrade of the sovereign bond rating, and/or a deterioration in the key financial metrics of each of these states and municipality could exert downward pressure on the assigned ratings. STATE OF SAO PAULO: Moody's Affirms Ba2 GS Rating, Outlook Stable ----------------------------------------------------------------- Moody's Investors Service has revised the rating outlook of the Brazilian state of Sao Paulo and the Municipality of Belo Horizonte to stable from negative. At the same time the agency maintained the rating outlook of the state of Minas Gerais at negative. All ratings have been affirmed. The ratings impacted are: State of Sao Paulo. Rating affirmed at Ba2 (Global Scale, Local and Foreign Currency), outlook changed to stable from negative Municipality of Belo Horizonte. Rating affirmed at Ba3 (Global Scale, Local and Foreign Currency), outlook changed to stable from negative State of Minas Gerais. Rating affirmed at B1 (Global Scale, Local and Foreign Currency) with a negative outlook The action follows Moody's March 15, 2017 rating action in which the outlook for Brazil's government bond rating was revised to stable from negative. RATINGS RATIONALE The ratings affirmation coupled with the outlook change to stable from negative on the above ratings follows a similar rating action on Brazil's sovereign bonds ratings and reflects the very close economic and financial linkages that exist between Brazil's government and Brazilian sub-sovereigns governments. The rating action also reflects Moody's expectation that Brazilian states and municipalities will continue to focus on controlling spending and adapting their cost structure such as to allow a progressive stabilization of their fiscal balance, even in the absence of visible tax revenue growth resulting from an incipient recovery in Brazil's economic growth expected in 2017. In Moody's view, the sustained improvement in the functioning of the country's legislative and executive institutions witnessed at the federal level will support achievement of structural reforms at the subnational level, that are needed for the rebalancing of their fiscal position. The agency notes in that regards that a successful execution of a pension reform driven at the federal level would support the implementation of similar reform at the level of states and municipalities as well, helping them to rebalance their fiscal position quicker. Moody's also notes that the assigned ratings are supported by a strong institutional framework and the close oversight of Brazil's federal government on states and municipalities in the country. The agency continues to view Brazil's institutional framework as a credit positive for states and municipalities relative to international peers. The negative outlook on the rating of Minas Gerais reflects the agency's expectation that the path towards rebalancing the state's fiscal position will remain challenging given its high debt levels and pension burden relative to peers. The negative outlook also reflects the risk that a further deterioration in Minas Gerais liquidity could lead to missed payments on the state's debt and other financial obligations in the next 12 to 18 months. WHAT COULD CHANGE THE RATING UP/DOWN An upgrade of Brazil's sovereign bond rating could exert upward pressure on the assigned ratings. A sustained improvement in key financial metrics could lead to an upgrade of these issuers. Conversely, a downgrade of the sovereign bond rating, and/or a deterioration in the key financial metrics of each of these states and municipality could exert downward pressure on the assigned ratings. Given its negative outlook, a rating upgrade for the state of Minas Gerais is unlikely in the near term. A rating downgrade could result from a further deterioration of the state's liquidity profile, evidenced by challenges in making timely payments on its financial obligations. VISION SECURITIZADORA: Fitch Withdraws 'BBsf(bra)' CRIS Rating -------------------------------------------------------------- Fitch Ratings has withdrawn the National Long-Term Rating 'BBsf (bra)' from the first series of Vision Securitizadora SA's first issue of Real Estate Receivables Certificates (CRIs). Rating had Negative Perspective. MAIN FUNDAMENTALS OF RATING Fitch has withdrawn the rating of this issue for commercial reasons. At the time of the withdrawal, Fitch did not have enough information to review the rating. Therefore, the agency will no longer provide analytical coverage or ratings to this structured transaction. RATING SENSITIVITY Not applicable due to the withdrawal of the rating. ========================== C A Y M A N I S L A N D S ========================== ALFA HOLDINGS: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Alfa Holdings Limited received on Feb. 20, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Roy Alan Angliss HSM Chambers 68 Fort Street PO Box 31726 Grand Cayman KY1-1207 Cayman Islands Telephone: (345) 815 7427 BELLINI DESIGNS: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Bellini Designs Ltd. received on Feb. 14, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: CDL Company Ltd. P.O. Box 31106 Grand Cayman KY1-1205 Cayman Islands CS SOLUTIONS: Shareholders' Final Meeting Set for March 21 ---------------------------------------------------------- The shareholders of CS Solutions Holdings Limited will hold their final meeting on March 21, 2017, at 10:00 a.m., to receive the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Westport Services Ltd. c/o Michelle Bryan P.O. Box 1111 Grand Cayman KY1-1102 Cayman Islands Telephone: (345) 949 5122 Facsimile: (345) 949 7920 DECISION INTERNATIONAL: Shareholders Receive Wind-Up Report ----------------------------------------------------------- The shareholders of Decision International Fund Limited received on Feb. 23, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Robert F. Logan 28570 Calabria Court #101 Naples Florida 34110 Telephone: (239) 908-0911 DYNAMIC CORE: Members Receive Wind-Up Report -------------------------------------------- The members of Dynamic Core Capital received on Feb. 22, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Bell Rock Corporate Services Limited 10 Market Street, 758 Camana Bay Grand Cayman KY1-9006 Cayman Islands EXTEN INVESTMENT: Members Receive Wind-Up Report ------------------------------------------------ The members of Exten Investment Fund received on Feb. 22, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Bell Rock Corporate Services Limited 10 Market Street, 758 Camana Bay Grand Cayman KY1-9006 Cayman Islands FALCON RELATIVE: Shareholder Receives Wind-Up Report ---------------------------------------------------- The shareholder of Falcon Relative Value Fund Limited received on Feb. 22, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Gulf International Bank (UK) Limited c/o Ridhiima Kapoor Telephone: +1 (345) 949 9876 Facsimile: +1 (345) 949 9877 HVS III: Shareholders Receive Wind-Up Report -------------------------------------------- The shareholders of HVS III (ECI), Ltd. received on Feb. 21, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard Fear c/o Kevin Butler P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands Telephone: (345) 814 7374 Facsimile: (345) 945 3902 HVS III PLUS: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of HVS III (ECI) Plus, Ltd. received on Feb. 21, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Richard Fear c/o Kevin Butler P.O. Box 2681 Grand Cayman KY1-1111 Cayman Islands Telephone: (345) 814 7374 Facsimile: (345) 945 3902 KODIAK OFFSHORE: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Kodiak Offshore Manager, Ltd. received on Feb. 23, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. 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 LIBERTY HOLDINGS: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Liberty Holdings 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: Dr. Rolf Schmid c/o Dorothee Langemann Limmatquai 94, Zurich, Switzerland CH-8021 Telephone: 41 44 711 71 71 Facsimile: 41 44 711 71 11 MARKETVIEW GLOBAL: Members Receive Wind-Up Report ------------------------------------------------- The members of Marketview Global Fund received on Feb. 22, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Bell Rock Corporate Services Limited 10 Market Street, 758 Camana Bay Grand Cayman KY1-9006 Cayman Islands MARKETVIEW MANAGEMENT: Members Receive Wind-Up Report ----------------------------------------------------- The members of Marketview Management received on Feb. 22, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Bell Rock Corporate Services Limited 10 Market Street, 758 Camana Bay Grand Cayman KY1-9006 Cayman Islands MATTERHORN GLOBAL: Members Receive Wind-Up Report ------------------------------------------------- The members of The Matterhorn Global Emerging Markets Fund received on March 2, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ewan Christian Telephone: +442073402825 Facsimile: +448707108448 29 Queen Anne's Gate London SW1H 9BU UK MATTERHORN GLOBAL GENERAL: Members Receive Wind-Up Report --------------------------------------------------------- The members of Matterhorn Global Emerging Markets General Partner Limited received on March 2, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Ewan Christian Telephone: +442073402825 Facsimile: +448707108448 29 Queen Anne's Gate London SW1H 9BU UK MC 1 - SPV 1: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of MC 1 - SPV 1 received on Feb. 28, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray MG Management Ltd. P.O. Box 30116 Grand Cayman KY1-1201 Cayman Islands Landmark Square, 2nd Floor 64 Earth Close Seven Mile Beach Telephone: +1 (345) 749 8181 Facsimile: +1 (345) 743 6767 MODULA CAPITAL: Shareholders Receive Wind-Up Report --------------------------------------------------- The shareholders of Modula Capital One (MC-1) received on Feb. 28, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Victor Murray MG Management Ltd. P.O. Box 30116 Grand Cayman KY1-1201 Cayman Islands Landmark Square, 2nd Floor 64 Earth Close Seven Mile Beach Telephone: +1 (345) 749 8181 Facsimile: +1 (345) 743 6767 PARTNERS CAPITAL: Shareholder Receives Wind-Up Report ----------------------------------------------------- The shareholder of Partners Capital Peregrine Fund Ltd. received on Feb. 28, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Tobias Seth c/o Richard Bennett Telephone: +852 3656 6069 Facsimile: +852 3656 6001 PELICANCROSS HOLDINGS: Shareholders Receive Wind-Up Report ---------------------------------------------------------- The shareholders of Pelicancross Holdings 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: Dr. Rolf Schmid c/o Dorothee Langemann Limmatquai 94, Zurich, Switzerland CH-8021 Telephone: 41 44 711 71 71 Facsimile: 41 44 711 71 11 SCUTUM HOLDINGS: Shareholder Receives Wind-Up Report ---------------------------------------------------- The shareholder of Scutum Holdings Limited received on March 2, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Commerce Corporate Services Limited P.O. Box 694 Grand Cayman Cayman Islands Telephone: 949 8666 Facsimile: 949 0626 TEMPLETON LIMITED: Members Receive Wind-Up Report ------------------------------------------------- The members of Templeton Limited received on Feb. 21, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Christopher D. Johnson c/o Tanya Armstrong P.O. Box 2499, Grand Cayman KY1-1104 Cayman Islands Telephone: (345) 946-0820 Facsimile: (345) 946-0864 =================================== D O M I N I C A N R E P U B L I C =================================== * DOMINICAN REPUBLIC: Gasoline, Diesel Fall, Gases Unchanged ------------------------------------------------------------ Dominican Today reports that the Industry and Commerce Ministry posted the fuel prices for the week from March 18 to 24, 2017, when premium gasoline will cost RD$210.80, or RD$2.00 less, and regular will cost RD$195.70, or RD$1.50 less per gallon. Regular diesel will cost RD$148.00, or RD$5.00 less, optimum diesel will cost RD$155.60, or RD$9.00 less; avtur will cost RD$111.90, and kerosene will cost RD$137, both RD$4.00 lower, while fuel oil will cost RD$92.30, or RD$5.00 less per gallon, according to Dominican Today. Propane gas will cost RD$100.50 per gallon, and natural gas will cost RD$25.26 per cubic meter, both unchanged, the report notes. The Dominican Republic Central Bank's posted average exchange rate of RD$47.31 per dollar was used to calculate all fuel prices, 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'. ============= J A M A I C A ============= NATIONAL COMMERCIAL BANK: Suspends Charges to Dormant Accounts -------------------------------------------------------------- RJR News reports that National Commercial Bank (NCB) disclosed that effective immediately it will suspend charges applied to dormant accounts. In a notice to staff, it said the charges have been suspended indefinitely, according to RJR News. NCB added that it will review its current processes and determine how it can best address the costs associated with maintaining and monitoring dormant accounts, the report notes. A charge of J$450 plus General Consumption Tax (GCT) was previously applied to business and personal accounts classified as dormant, the report relays. The report discloses that accounts are classified as dormant if there is no customer activity for two years for saving accounts and one year for current accounts. Under the Banking Services Act, deposit taking institutions are required to report to the Bank of Jamaica deposits treated as unclaimed, due to the absence of a transaction or request for a statement, for seven years, the report relays. After a further 8 years, the Act provides for the Minister of Finance to publish information on the unclaimed funds, to begin a procedure under which the amounts are paid over to the Government, the report says. Meanwhile, Fitz Jackson, Member of Parliament for St. Catherine Southern, who has been leading the fight against bank fees, welcomed the move by NCB to suspend charges on dormant accounts, but, he is still not satisfied -- stating that if the bank is sincere they will return the funds to the customers, the report notes. He told RJR News that he has taken preparatory steps to start legal proceedings in relation to the matter. As reported in the Troubled Company Reporter-Latin America on March 1, 2017, Fitch Ratings has affirmed National Commercial Bank Jamaica Limited's ratings as follows: -- Long-term foreign and local currency IDRs at 'B'; Outlook Stable; -- Short-term foreign and local currency IDRs at 'B'; -- Viability Rating at 'b'; -- Support Rating at '4'; -- Support Rating Floor at 'B'. =========== M E X I C O =========== AXTEL SAB: Fitch Affirms BB- Long-Term IDR; Outlook Stable ---------------------------------------------------------- Fitch Ratings has affirmed Axtel S.A.B. de C.V.'s Long-Term Local- and Foreign-Currency Issuer Default Ratings (IDRs) at 'BB-'. Fitch also affirmed the company's National long-term rating at 'A- (mex)'. The Outlook on the IDR and National long-term rating remains Stable. Axtel's ratings reflect the company's improved operational scale and market position in the enterprise business segment following the merger with Alestra in 2016. The company benefits from enhanced financial flexibility as a subsidiary of Alfa S.A.B. de C.V. (Alfa, 'BBB-'/Stable), which is one of the largest business groups in Mexico, with leading market positions across various industries. The ratings are tempered by Axtel's weak financial profile for the rating category, small market positions in Mexico and volatile demand outlook from its government clients, as well as negative FX exposure. KEY RATING DRIVERS Enterprise-driven Growth: Fitch forecasts Axtel to undergo modest low single-digit revenue growth in 2017 and 2018, driven mainly by continued solid growth in the enterprise segment, which represented 65% of its total sales on a pro forma basis in 2016. Fitch believes that the demand outlook for network connectivity and IT solutions for enterprise clients should remain relatively stable in Mexico, in line with the regional trend. Also, the recurring revenue proportion based on multi-year contracts represented 95% of the company's total enterprise revenues in 2016, which should remain relatively stable given the switching cost of service providers. Negatively, Fitch expects revenue contraction in the residential and government segments to continue in 2017. For the residential services, Fitch expects continued subscriber loss for the wireless service until the service discontinuation in 2018, which will dilute the steady growth in its fiber-to-the-home (FTTH) subscribers. The mass market segment revenue is forecast to resume growth from 2019, as FTTH revenues continue solid double-digit growth annually backed by steady expansion in the subscriber base. Demand from government agencies could continue to be volatile given austerity measures amid difficult macro conditions. Any material improvement in contract volumes from the public sector would be challenging, as the discretionary budgets for IT and telecom investments will likely remain constrained. Positive Merger Impact: The impact of Axtel's merger with Alestra has been positive in terms of a strategic fit of Alestra's operations, increased market presence, as well as opex and capex savings. Axtel disclosed that the merger synergy during 2016 was about MXN500 million, with additional MXN500 million headroom to be achieved in 2017 for a total run-rate of MXN1 billion. Synergy benefits have and will continue to come from network-related opex efficiencies and lower corporate expenses, following the integration of operations. In addition, Fitch believes that being a part of a reputable group in Alfa helps Axtel gain better access to banks/capital markets, leading to stronger financial flexibility. Negative FCF to Continue: Fitch forecasts that Axtel's negative FCF generation will remain uncurbed at least for the short term. Fitch projects the company's capital intensity, measured by capex/sales, to remain consistently well above 20% in 2017 and 2018 at around MXN3.4-MXN3.5 billion, which will largely consume the projected CFFO during the period. Annual cash interest payments in 2017 and 2018 should fall by over 50% from the 2016 level of MXN2.4 billion, which was high due to expenses related to the prepayment of Axtel's previous bonds. Fitch does not expect any dividend payments in the short- to medium-term. High Leverage: Axtel's current leverage is weak for the rating level, and its failure to show any signs of leverage improvement in the coming quarters will immediately pressure the ratings. The company's net leverage increased to 4.4x at end-2016 on a pro forma basis, compared to Axtel's pre-merger leverage of 3.8x at end-2015, due mainly to MXN depreciation against the USD, integration costs, as well as continued revenue contraction in its government business. Axtel is negatively exposed to MXN depreciation as about 70% of its total debt is denominated in USD against its MXN-based EBITDA generation. Fitch forecasts a modest leverage reduction over the medium term towards 4.0x as the company's EBITDA gradually improves. Deleveraging could be accelerated should the company successfully divest its 143 mobile towers in 2017, as recently disclosed. While any details on the potential asset disposal is yet to be available, Fitch forecasts the company to potentially garner about USD50 million from the transaction, which should lead to 0.2x net leverage improvement based on Fitch's 2017 EBITDA projection. DERIVATION SUMMARY Axtel's 'BB-' ratings reflect the company's relatively weak financial profile, mainly its high leverage compared to other 'BB' category telecom operators in the region. The company's weak market position and small scale of operations are also negative considerations versus its peers in the rating category; this is somewhat offset by its business concentration in the enterprise segment which faces less competition than the residential segment. Parent/subsidiary linkage exists between Axtel and Alfa, given the latter's 51% ownership in the company. However, the ratings are based on Axtel's stand-alone credit profile given weak legal and strategic linkages. No country ceiling constraint and operating environment influence were in effect for the ratings. KEY ASSUMPTIONS Fitch's key assumptions within Fitch ratings case for the issuer include: - Low- to single-digit revenue growth on a pro forma basis in the short- to medium-term, mainly led by enterprise segment; - WiMax service to be discontinued from mid-2018; - Modest EBITDA margin improvement to 33% in 2017; - Capex to represent 22%-23% of sales over the medium term; - Adjusted net leverage to gradually fall toward 4.0x over the medium term. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Positive Rating Action -- Strong revenue growth backed by continued solid growth in the enterprise and the FTTH business, with stable demand from the government segment -- Positive FCF generation to strengthen its cash position -- Improved adjusted net leverage to comfortably below 3.5x on a sustained basis. Future Developments That May, Individually or Collectively, Lead to Negative Rating Action -- Unfavorable economic conditions negatively affecting IT/telecom budgets of the corporate and public segments -- Uncurbed negative FCF generation -- Further depreciation of MXN against the USD -- Failure to improve adjusted net leverage toward 4.0x on a sustained basis, from the current level of 4.4x. LIQUIDITY Adequate Liquidity: Axtel's liquidity profile is adequate. The company's cash balance was MXN1,447 million at end-2016, which comfortably covered its short-term debt of MXN895 million. The company will not face sizable bullet maturities until 2019, when MXN10.3 billion of bank loans become due. Axtel expects to boost its liquidity position with the planned tower sales. While the company does not have any committed credit facilities, Fitch believes that Axtel can retain solid financial flexibility in terms of access to domestic financial institutions in Mexico, as a part of Alfa group. FULL LIST OF RATING ACTIONS Axtel S.A.B. de C.V. -- Long-Term Local Currency and Foreign Currency IDR affirmed at 'BB-'/Outlook Stable; -- National long-term rating affirmed at 'A-(mex)'/Outlook Stable. HIPOTECARIA SU: Fitch Holds 'D (mex)' National Scale Rating ----------------------------------------------------------- Fitch Ratings maintains in 'D (mex)' the long-term and short-term counterparty risk ratings of Hipotecaria Su Casita, SA de CV, Sofom ENR. It also maintains the long-term national rating of the issue of stock certificates (CBs) CASITA 11. KEY FACTORS OF THE QUALIFICATIONS Su Casita's ratings consider the default in the payment of interest on the issue of CBs CASITA 11 registered since September 25, 2012. The entity continues in commercial bankruptcy proceedings since January 2013. Fitch has stated since March 13, 2012 that default in the payment of its obligations was considered as imminent in view of the weak and deteriorating financial situation of the entity. SENSITIVITY OF THE QUALIFICATIONS In Fitch's opinion, changes in Su Casita's ratings would be unlikely due to the conditions in which it is located. Upon completion of the commercial tender, Fitch would withdraw the issuer's counterparty risk ratings. The qualification of CASITA 11 could also retire before the same scenario. However, this latter rating would be reviewed in the event that sufficient measures are taken to favor the payment of its obligations based on the assets that form part of the trust that serves as collateral to this issuance. Fitch performed the following rating actions on the ratings: Hipotecaria Su Casita: - Long-term national scale rating remains at 'D (mex)'; - Short-term national scale rating remains at 'D (mex)'; - National scale rating of the CASITA 11 issue is maintained in 'D (mex)'. METROFINANCIERA SAPI: Fitch Affirms B- Long-Term IDRs ----------------------------------------------------- Fitch Ratings has affirmed Metrofinanciera S.A.P.I. de C.V. Sofom, E.R.'s Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B-' and its Short-Term IDRs at 'B'. Fitch has also affirmed Metrofinanciera's long- and short-term National scale ratings at 'B-(mex)' and 'B(mex)', respectively. The Outlook on the long-term ratings was revised to Negative from Stable. The revision of the Outlook to Negative is driven by Metrofinanciera's deterioration in earnings generation capacity, as it posted greater losses in 2016 than in 2015, contrary to Fitch's and management's expectations. The Negative Outlook also reflects the pressure on liquidity the company will face in 2019, if it is not able to successfully implement strategies that mitigate the contingency. KEY RATING DRIVERS IDRS AND NATIONAL RATINGS Metrofinanciera's ratings reflect its still weak asset quality metrics, the continued pressure on its loss-absorption capacity as a result of recurring net losses, and the concentration of its funding base. Ratings also consider its moderate and gradually recovering franchise in the construction loans segment in Mexico. It is one of the few non-bank mortgage lenders still functioning in Mexico after the crisis, although the number of new participants in the segment is growing progressively. During 2016, the loan portfolio mix shifted toward construction loans after it wrote-off a relevant amount of impaired legacy mortgage loans and construction loan originations exhibited double-digit growth. As of year-end 2016, 63.8% of its portfolio was composed of construction loans, up from 46.1% in 2015. Despite showing moderate improvements during 2016, asset quality continues to be Metrofinanciera's main weakness and challenge. As of December 2016, its impaired loan ratio decreased to 10.8% from 26% in 2015, mainly due to individual loan write-offs. The impaired loan ratio adjusted for gross charge-offs, foreclosed real estate and other unproductive assets stood at 26%, down from 35.1% in 2015. Restructured construction loans represented 8.6% of the total construction loan portfolio, though most of these were on performing status (88%). Regarding its individual loan portfolio, 46% of it was restructured and 54.1% of it was still in delinquent status. Reserve coverage decreased during 2016, to 40% compared to 67.1% in 2015, as a result of the charge-offs of individual loans performed during the year that amounted to MXN1,010 million. Reserves are in line with regulatory requirements for banks and industry practice; however, in Fitch's opinion they are insufficient. Concentrations per borrower continue to be high and put pressure on the asset quality of its construction loan portfolio. The company's top 20 clients represented almost 2x its equity as of the end of 2016. Metrofinanciera's performance has been negative since the 2008 crisis. During 2016, higher than forecasted reserve requirements, higher than expected increases in Mexico's reference valuation curves, and the payment of co-financed mortgages to Infonavit drove the larger than expected negative results. There were other unforeseen events that benefitted profitability, but they were not sufficient to offset the negative drivers of performance. The company expects to break-even in 2019 and forecasts losses of approximately MXN98 million for 2017. Metrofinanciera's loss absorption capacity continues to be pressured by the negative results registered over the past years and by the high level of unproductive assets on its balance sheet. The company's debt/tangible common equity ratio increased to 6.7x as of YE16 from 5.5x as of YE15. Increased leverage is a result of balance sheet growth and losses put pressure on capital. Its Fitch Core Capital (FCC) and regulatory capital ratios were 11.7% and 14.2% as of YE16, respectively, compared with 13.4% and 16.5% as of YE15 Since the 2014 restructuring, all of Metrofinanciera's funding is provided by SHF and Fovi (a trust administered by SHF). This limits the funding flexibility, as the company has faced difficulties in finding alternative funding sources. Metrofinanciera's net cash flow was positive in 2016; in addition, the maturity profile of its liabilities is comfortable for the next two years. However, one of the credit lines granted by SHF has a pass-through payment scheme up until January 2019, when fixed payments must be made for the remaining term (approximately five years). Additionally, the company has an obligation with SHF that amounts to approximately MXN210 million due in November 2019. The company is currently working on the development of strategies to mitigate these contingencies. The rest of Metrofinanciera's interest-bearing liabilities also have a pass-through structure. RATING SENSITIVITIES IDRS AND NATIONAL RATINGS Ratings could be downgraded if Metrofinanciera's earnings generation capacity continues to be pressured within the next 12 to 24 months. Relevant pressure in liquidity that may occur if the company is not able to successfully implement strategies to mitigate the pressure stemming from maturity mismatches in 2019 or an FCC ratio consistently below 10% could also negatively affect ratings. The Outlook could be revised to Stable if Metrofinanciera is able to materially reverse the negative trend in its financial performance while continuing to grow its construction loan portfolio, with continued improvements in asset quality ratios and an improvement in its debt maturity schedule for 2019 and beyond. Fitch affirmed the following ratings: Metrofinanciera S.A.P.I. de C.V. Sofom, E.R. -- Long-Term Foreign Currency IDR at 'B-'; -- Short-Term Foreign Currency IDR at 'B'; -- Long-Term Local Currency IDR at 'B-'; -- Short-Term Local Currency IDR at 'B'; -- National long-term rating at 'B-(mex)'; -- National short-term rating at'B(mex)'. The Rating Outlook is Negative. MEXICO: January Industrial Production Held Up by Manufacturing -------------------------------------------------------------- Anthony Harrup at The Wall Street Journal reports that Mexican industrial production was little changed in January from a year before as higher factory output was offset by continued declines in oil and gas production, the National Statistics Institute said. Industrial production slipped 0.1% from January 2016, slightly less than the expected 0.2% fall, and was up 0.1% seasonally adjusted from December, according to The Wall Street Journal. The report notes that overall production continued to be hurt by lower oil and gas output, which fell 11.9% from a year before. State oil company Petroleos Mexicanos produced 2.02 million barrels a day of crude oil in January, down from 2.26 million in the year-earlier month, while Pemex's natural gas output fell 13.6% to 5.326 billion cubic feet a day, the report relays. Manufacturing output rose 4.3% from January of 2016, helped by a pickup in export demand, even as doubts about trade and investment relations with the U.S. weigh on business and consumer confidence, the report discloses. Manufacturing was up 0.5% from December. "The favorable external conditions that manufacturers are enjoying today stands in sharp contrast to depressed sentiment indicators, the latter hurt by uncertainty regarding the future shape of the U.S.-Mexico bilateral relationship," Morgan Stanley said in a report, notes WSJ. A renegotiation of the North American Free Trade Agreement is expected to start in the summer, and it still isn't clear what the talks will entail, the report relays. Mexico could be among the hardest hit by a possible U.S. border-adjusted tax, since it sends 80% of its exports to the U.S., and manufactured goods make up nine-tenths of its exports, the report notes. "We believe that manufacturing exports will continue recovering during the first half of the year, as trade flows continue without disruption," Mr. Barclays said in its weekly outlook, the report discloses. WSJ relays that Mr. Barclays was guardedly optimistic about the outcome of Nafta negotiations between Mexico, the U.S. and Canada. So far, comments by both Mexican and U.S. officials about adding chapters to Nafta to include e-commerce, telecommunications and energy, and willingness to discuss rules of origin "definitely reduces the risks of trade disruptions between the three economies, and there is room for win-win scenarios," the bank said, the report notes. On the domestic front, government budget restrictions are affecting construction, which fell 1% in January from a year earlier and was flat compared with December, the report discloses. Utilities output rose 1% from January 2016, but was down 2% seasonally adjusted from December, the report adds. ================= X X X X X X X X X ================= LATAM: Caribbean Warned to Prepare for More Severe Storms --------------------------------------------------------- Caribbean360.com reports that organization of Eastern Caribbean (OECS) member states have been urged to prepare for more extreme weather conditions and natural disasters as a result of climate change. The warning came from Crispin d'Auvergne, St. Lucia's chief sustainable development officer as he contributed to a panel discussion at an OECS climate change forum in Dominica, part of the Vini Kozä (Let's Chat) Series that engages citizens in discussion and debate on development opportunities and challenges facing the region, according to Caribbean360.com. According to d'Auvergne, a 2008 environmental study showed that while St Lucia sees an average of one to two Category 4 or Category 5 hurricanes per year, it is likely to increase to four or five hurricanes of that magnitude each year, the report notes. Citing another study, he said rainfall in the Caribbean is expected to increase by 25 to 50 percent in the next five decades, the report relays. These extreme weather patterns will become "the new normal", he said, adding that because the frequency and intensity of extreme weather conditions is likely to increase, the Caribbean should plan accordingly, preparing for more severe natural disasters like droughts, hurricanes and floods, the report relays. After Dominica was devastated by Tropical Storm Erica in August 2015, the Minister for Health and Environment, Dr. Kenneth Darroux, said Dominica had never seen a disaster of such proportions in terms of damage to infrastructure and the loss of life, the report discloses. Infrastructural damage was estimated at $1.4 billion, the report relays. Minister Darroux said the storm caused the government to revisit its land use, policies, and regulations, the report adds. * BOND PRICING: For the Week From March 13 to March 17, 2017 ------------------------------------------------------------ Issuer Name Cpn Price Maturity Country Curr ----------- --- ----- -------- ------- --- BA-CA Finance Cayman Lt 0.518 62.07 KY EUR CSN Islands XII Corp 7 68 BR USD CSN Islands XII Corp 7 67.75 BR USD Decimo Primer Fideicomi 4.54 52.63 10/25/2041 PA USD Decimo Primer Fideicomi 6 63.5 10/25/2041 PA USD Dolomite Capital Ltd 13.26 67.2 12/20/2019 CN ZAR Empresa de Telecomunica 7 73.14 1/17/2023 CO COP Empresa de Telecomunica 7 73.14 1/17/2023 CO COP ESFG International Ltd 5.75 0.66 KY EUR General Shopping Financ 10 72.5 KY USD General Shopping Financ 10 71.7 KY USD Global A&T Electronics 10 74 2/1/2019 SG USD Global A&T Electronics 10 74.5 2/1/2019 SG USD Global A&T Electronics 10 65.5 2/1/2019 SG USD Global A&T Electronics 10 65 2/1/2019 SG USD Gol Finance 8.75 63 BR USD Gol Finance 8.75 63.88 BR USD Gol Linhas Aereas SA 10.75 34.63 2/12/2023 BR USD Gol Linhas Aereas SA 10.75 34.63 2/12/2023 BR USD Inversora Electrica de 6.5 55 9/26/2017 AR USD Inversora Electrica de 6.5 55 9/26/2017 AR USD MIE Holdings Corp 7.5 75.16 4/25/2019 HK USD MIE Holdings Corp 7.5 75.26 4/25/2019 HK USD NB Finance Ltd/Cayman I 3.88 58.01 2/7/2035 KY EUR Newland International P 9.5 19.88 7/3/2017 PA USD Newland International P 9.5 19.88 7/3/2017 PA USD Noble Holding Internati 5.25 72.98 3/15/2042 KY USD Ocean Rig UDW Inc 7.25 39 4/1/2019 CY USD Ocean Rig UDW Inc 7.25 38 4/1/2019 CY USD Odebrecht Drilling Norb 6.35 48.5 6/30/2021 KY USD Odebrecht Drilling Norb 6.35 47.25 6/30/2021 KY USD Odebrecht Finance Ltd 7.5 49 KY USD Odebrecht Finance Ltd 4.3 48.29 4/25/2025 KY USD Odebrecht Finance Ltd 7.12 48.2 6/26/2042 KY USD Odebrecht Finance Ltd 5.25 46.15 6/27/2029 KY USD Odebrecht Finance Ltd 7 57.02 4/21/2020 KY USD Odebrecht Finance Ltd 5.12 53.51 6/26/2022 KY USD Odebrecht Finance Ltd 8.25 70.88 4/25/2018 KY BRL Odebrecht Finance Ltd 6 51.47 4/5/2023 KY USD Odebrecht Finance Ltd 5.25 45.92 6/27/2029 KY USD Odebrecht Finance Ltd 7.1 47.82 6/26/2042 KY USD Odebrecht Finance Ltd 7.5 49.25 KY USD Odebrecht Finance Ltd 4.3 48.39 4/25/2025 KY USD Odebrecht Finance Ltd 6 51.77 4/5/2023 KY USD Odebrecht Finance Ltd 8.2 70.88 4/25/2018 KY BRL Odebrecht Finance Ltd 7 56.85 4/21/2020 KY USD Odebrecht Finance Ltd 5.1 52.99 6/26/2022 KY USD Odebrecht Offshore Dril 6.6 39.64 10/1/2022 KY USD Odebrecht Offshore Dril 6.7 36.44 10/1/2022 KY USD Odebrecht Offshore Dril 6.6 38.79 10/1/2022 KY USD Odebrecht Offshore Dril 6.7 38.75 10/1/2022 KY USD Petroleos de Venezuela 12.75 67.19 2/17/2022 VE USD Petroleos de Venezuela 9 58.28 11/17/2021 VE USD Petroleos de Venezuela 6 40.32 5/16/2024 VE USD Petroleos de Venezuela 9.75 50.15 5/17/2035 VE USD Petroleos de Venezuela 6 38.22 11/15/2026 VE USD Petroleos de Venezuela 5.37 37.39 4/12/2027 VE USD Petroleos de Venezuela 5.5 37.1 4/12/2037 VE USD Petroleos de Venezuela 6 41.25 10/28/2022 VE USD Petroleos de Venezuela 6 40.01 5/16/2024 VE USD Petroleos de Venezuela 9 58.11 11/17/2021 VE USD Petroleos de Venezuela 6 38.13 11/15/2026 VE USD Petroleos de Venezuela 12.75 67.2 2/17/2022 VE USD Petroleos de Venezuela 9.75 49.94 5/17/2035 VE USD Polarcus Ltd 5.6 60 3/30/2022 AE USD Siem Offshore Inc 5.8 49.75 1/30/2018 NO NOK Siem Offshore Inc 5.59 50.25 3/28/2019 NO NOK STB Finance Cayman Ltd 2.04 58.35 KY JPY Sylph Ltd 2.36 50.93 9/25/2036 KY USD Uruguay Notas del Tesor 5.25 68.02 12/29/2021 UY UYU US Capital Funding IV L 1.25 51.35 12/1/2039 KY USD US Capital Funding IV L 1.25 51.35 12/1/2039 KY USD USJ Acucar e Alcool SA 9.87 67.5 11/9/2019 BR USD USJ Acucar e Alcool SA 9.87 65.75 11/9/2019 BR USD Venezuela Government In 9.25 48.75 5/7/2028 VE USD Venezuela Government In 13.63 82.58 8/15/2018 VE USD Venezuela Government In 9 51.75 5/7/2023 VE USD Venezuela Government In 9.37 49 1/13/2034 VE USD Venezuela Government In 7 71.88 12/1/2018 VE USD Venezuela Government In 9.25 52 9/15/2027 VE USD Venezuela Government In 7.65 46.38 4/21/2025 VE USD Venezuela Government In 13.63 82.58 8/15/2018 VE USD Venezuela Government In 7.75 61.75 10/13/2019 VE USD Venezuela Government In 11.95 58.13 8/5/2031 VE USD Venezuela Government In 6 53.75 12/9/2020 VE USD Venezuela Government In 12.75 67 8/23/2022 VE USD Venezuela Government In 7 44 3/31/2038 VE USD Venezuela Government In 6.5 36.53 12/29/2036 VE USD Venezuela Government In 8.25 47.75 10/13/2024 VE USD Venezuela Government In 11.75 57.75 10/21/2026 VE USD Venezuela Government TI 5.25 69.59 3/21/2019 VE USD *********** 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 * * *