/raid1/www/Hosts/bankrupt/TCRLA_Public/170607.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
Wednesday, June 7, 2017, Vol. 18, No. 112
Headlines
A R G E N T I N A
FBA RENTA: Moody's Assigns B-bf Global Scale Bond Fund Rating
PVCRED SERIE XXXIII: Moody's Rates ARS52.156MM Certs. at Caa3(sf)
B R A Z I L
BM&FBOVESPA: S&P Keeps 'BB/B' ICR on Watch Neg. on Merger w/ CETIP
BRAZILIAN FINANCE: Fitch Affirms & Withdraws B Short-Term IDRs
COSAN OVERSEAS: Moody's Affirms Ba3 Rating on Perpetual Bonds
C A Y M A N I S L A N D S
BBGP ODENSE: Shareholder to Receive Wind-Up Report on June 29
CAP-ENDURANCE: Shareholder to Receive Wind-Up Report on June 29
CRYSTAL II: Members' Final Meeting Set for June 23
FR ENERGY: Shareholders Receive Wind-Up Report
GOOD HILL: Shareholder to Receive Wind-Up Report on June 14
OBAIR INVESTMENT: Shareholders' Final Meeting Set for June 13
PILLERTON SERVICES: Shareholders' Final Meeting Set for June 21
S.A.C. OFFSHORE: Shareholders' Final Meeting Set for June 12
TONGJITANG CHINESE: Shareholders' Final Meeting Set for June 13
WOOSTER OFFSHORE: Shareholders' Final Meeting Set for June 13
E L S A L V A D O R
LA HIPOTECARIA: Fitch Affirms 'B-sf' Rating on Series A Notes
J A M A I C A
UC RUSAL: Debt Pressure Reduced
M E X I C O
GRUPO CEMENTOS: S&P Raises LT Corp. Rating to 'BB'; Outlook Stable
* MEXICO: Near Sugar Pact Agreement With U.S.
P U E R T O R I C O
ACEMLA DE PUERTO RICO: Taps Aquino De Cordova as Accountant
COOPERATIVA DE SEGUROS: A.M. Best Affirms C+ FSR; Outlook Stable
T R I N I D A D & T O B A G O
CL FIN'L: "Give Us Back Our Company," Shareholders Say
- - - - -
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A R G E N T I N A
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FBA RENTA: Moody's Assigns B-bf Global Scale Bond Fund Rating
-------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has
assigned bond fund ratings to FBA Renta Fija Dolar and FBA Renta
Fija Dolar Plus (the Funds), two new bond funds managed by BBVA
Frances Asset Management S.A.G.F.C.I. (BBVA Frances AM) that are
domiciled in Argentina.
The ratings assigned for FBA Renta Fija Dolar and to FBA Renta
Fija Dolar Plus are:
- Global scale bond fund ratings: B-bf
- National scale bond fund ratings: Baa-bf.ar
RATINGS RATIONALE
The B-bf global scale bond fund ratings and the Baa-bf.ar national
scale bond fund ratings reflect the funds' maturity-adjusted
weighted average credit quality which are both consistent with a
B-bf/Baa-bf.ar profile. The Funds will largely invest in local
treasury bills (LETEs), sub-sovereigns and Government Bonds
denominated in US Dollars rated at B3/Baa1.ar. The key difference
between the funds will be there average duration. FBA Renta Fija
Dolar's average duration is expected to be 180 days or less while
FBA Renta Fija Plus' wis expected to be 1.5 years or less.
"Both funds are dollarized investment vehicles which are in high
demand by local investors this year after the local Tax Amnesty
Bill period finished.", said Moody's Vice President Carlos de
Nevares.
BBVA Frances AM, is an Argentina-domiciled subsidiary of Grupo
Financiero BBVA Banco Frances. As of April 2017, BBVA Frances AM
managed investments of approximately ARS27,273 million (or
approximately USD 1,704 million) with a 5.93% of market share.
PVCRED SERIE XXXIII: Moody's Rates ARS52.156MM Certs. at Caa3(sf)
-----------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has rated
Fideicomiso Financiero Pvcred Serie XXXIII. This transaction will
be issued by TMF Trust Company (Argentina) S.A.- acting solely in
its capacity as issuer and trustee.
This credit rating is subject to the fulfillment of contingencies
that are highly likely to be completed, such as finalization of
documents and issuance of the securities. This credit rating is
based on certain information that may change prior to the
fulfillment of such contingencies, including market conditions,
financial projections, transaction structure, terms and conditions
of the issuance, characteristics of the underlying assets or
receivables, allocation of cash flows and of losses, performance
triggers, transaction counterparties and other information
included in the transaction documentation. Any pertinent change in
such information or additional information could result in a
change of this credit rating.
- ARS141,015,000 in Class A Floating Rate Debt Securities (VRDA
TV) of "Fideicomiso Financiero Pvcred Serie XXXIII", rated Aaa.ar
(sf) (Argentine National Scale) and Ba3 (sf) (Global Scale)
- ARS52,156,000 in Certificates (CP) of "Fideicomiso Financiero
Pvcred Serie XXXIII", rated Caa2.ar (sf) (Argentine National
Scale) and Caa3 (sf) (Global Scale).
RATINGS RATIONALE
The rated securities are payable from the cash flow coming from
the assets of the trust, which is an amortizing pool of
approximately 7,462 eligible personal loans denominated in
Argentine pesos as of April 30th 2017, bearing fixed interest
rate, originated by Pvcred, a financial company owned by Comafi's
Group in Argentina. Only the installments due after August 31,
2017 will be assigned to the trust.
The VRDA TV will bear a floating interest rate (BADLAR plus
300bps) from the issue date with first coupon payment date in
October 2017. The VRDA TV's interest rate will never be higher
than 31% or lower than 20%.
Overall credit enhancement is comprised of subordination, various
reserve funds and excess spread.
The transaction has initial subordination level of 24.1% for the
VRDA TV, calculated over the pool's principal balance as of August
31, 2017. The subordination level will increase overtime due to
the turbo sequential payment structure. The transaction will have
a grace period for principal and interest payment until October
10, 2017.
The transaction also benefits from an estimated 49.6% annual
excess spread, before considering losses, taxes or prepayments and
calculated at the caps of 31% for the VRDA TV.
Factors that would lead to an upgrade or downgrade of the ratings:
Factors that may lead to a downgrade of the ratings include an
increase in delinquency levels beyond the level Moody's assumed
when rating this transaction. Although Moody's analyzed the
historical performance data of previous transactions and similar
receivables originated by Pvcred, the actual performance of the
securitized pool may be affected, among others, by the economic
activity, high inflation rates compared with nominal salaries
increases and the unemployment rate in Argentina.
Factors that may lead to an upgrade of the ratings include the
building of credit enhancement over time due to the turbo
sequential payment structure, when compared with the level of
projected losses in the securitized pool.
Loss and Cash Flow Analysis:
Moody's considered the credit enhancement provided in this
transaction through the initial subordination levels for each
rated class, as well as the historical performance of Pvcred
portfolio. In addition, Moody's considered factors common to
consumer loans securitizations such as delinquencies, prepayments
and losses; as well as specific factors related to the Argentine
market, such as the probability of an increase in losses if there
are changes in the macroeconomic scenario in Argentina.
These factors were incorporated in a cash flow model that takes
into account all the relevant features of the transaction's assets
and liabilities. Monte Carlo simulations were run, which
determines the expected loss for the rated securities.
Moody's analyzed the historical performance data of previous
transactions and similar receivables originated by Pvcred, ranging
from July 2014 to February 2017. Moody's has observed a weaker
performance of Refis loans compared to Unregulated Pvcred Loans.
In addition, Moody's has observed a weaker performance of Open
Market Loans compared to Existing Loans.
Moody's notes that there is uncertainty around key macroeconomic
variables in Argentina, including inflation rates, salary
increases compared to inflation, and economic activity, which have
an impact on future performance of this transaction.
In assigning the rating to this deal, Moody's assumed a lognormal
distribution of losses for each one of the different securitized
sub-pools: for the loans of Existing Clients, a mean of 15%; for
loans of Open Market, a mean of 35% and for the "Refinanciados"
loans, a mean of 45% with a coefficient of variation of 60% for
each of the three sub-pools. Also, Moody's assumed a lognormal
distribution for prepayments with a mean of 50% and a coefficient
of variation of 70%.
Servicer default was modeled by simulating the default of Banco
Comafi S.A. as the servicer consistent with its current rating of
B3/Baa1.ar. In the scenarios where the servicer defaults, Moody's
assumed that the defaults on the pool would increase by 20
percentage points.
The model results showed 1.5% expected loss for Class A Floating
Rate Debt Securities and 29.7% for the Certificates.
Moody's also evaluated the back-up servicing arrangements in the
transaction. If Pvcred is removed as collection agent, Banco
Comafi will be appointed as the back-up collection agent.
Stress Scenarios:
Moody's ran several stress scenarios, including increases in the
default rate assumptions. If default rates were increased by 4%
from the base case scenario, the ratings of the Class A Floating
Rate Securities would likely be downgraded to B1 (sf), while that
of the Certificates would remain unchanged.
The principal methodology used in these ratings was "Moody's
Approach to Rating Consumer Loan-Backed ABS" published in
September 2015.
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B R A Z I L
===========
BM&FBOVESPA: S&P Keeps 'BB/B' ICR on Watch Neg. on Merger w/ CETIP
------------------------------------------------------------------
S&P Global Ratings kept its 'BB/B' issuer credit ratings on
BM&FBOVESPA S.A - Bolsa de Valores, Mercadorias e Futuros
(BM&FBOVESPA) on CreditWatch negative.
RATIONALE
The rating action follows the conclusion of S&P's analysis of the
impact of the company's merger with CETIP S.A.-Mercados
Organizados (CETIP). S&P considers that the merger is
strengthening BM&FBOVESPA's already strong business position as a
result of increasing scale (with pro forma revenue growth of about
55%) and broader product diversification in complementary lines.
CETIP provides services in registration, central securities
depository, trading and settlement services for assets and
securities, and electronic solutions for the delivery of
information required for the registration of contracts and
financial liens by transit bodies. However, the transaction
doesn't enhance BM&FBOVESPA's geographic diversification (with
most pro-forma operations focused on the Brazilian market). At
the same time, S&P believes the company's financial risk profile
has deteriorated on higher debt, mitigated by projected
deleveraging in 2017-2019. S&P now expects BM&FBOVESPA's debt to
EBITDA to average 1.8x for the next two years - compared with
around 1x prior to the merger, a level consistent with a lower
financial risk profile assessment.
As a result, S&P revised downward BM&FBOVESPA SACP to 'bbb+' from
za-'. The company's SACP incorporates a three-notch deduction to
reflect the concentration of clearing risks among some key
Brazilian clearing members and their weaker creditworthiness than
those of their global peers. At the same time, S&P views
favorably the robustness and sophistication of BM&FBOVESPA's
financial safeguards and the staff's competence that monitors
them. S&P will continue monitoring clearing and settlement risks
to ensure that the planned integration of the four clearinghouses
won't result in overall weaker financial safeguards. S&P don't
consider that the incorporation of CETIP would increase clearing
and settlement risks given that the entity has been operating
under delivery versus payment conditions and S&P's understanding
that it doesn't grant unsecured overdrafts.
Despite the lower SACP, S&P's ratings on BM&FBOVESPA remain
unchanged and continue to be capped by those on Brazil. This is
because, with most of its cash margins invested in Brazil
government bonds, the entity doesn't pass S&P's stress test that
assesses the potential resilience to a hypothetical default of
Brazil in local and foreign currencies. In addition, in order to
fund the merger with CETIP, the company sold its dollar-
denominated investment in CME Group Inc. (AA-/Stable/A-1+), which
had been a significant counter-cyclical asset that helped
BM&FBOVESPA to meet the solvency stress test in past periods. S&P
rates BM&FBOVESPA's $612 million senior unsecured notes at 'BB',
the same level as its long-term issuer credit.
CREDITWATCH
The CreditWatch negative listing reflects the risk that in the
next three months S&P could lower the ratings on BM&FBOVESPA due
to a downgrade of the sovereign amid more stressed political
dynamics. A weakened administration, a long or disruptive
transition process, or a caretaker president with diminished
ability and willingness to advance reforms would likely further
delay economic recovery and the passage of proactive fiscal and
economic policies and could lead to a downgrade.
S&P could affirm the ratings on the entity if it affirms the
sovereign ratings and the uptick in political uncertainties is
short-lived, while an administration and economic team have
sufficient support in Congress to continue advancing corrective
and timely policy measures to stanch fiscal deterioration and
strengthen GDP growth prospects.
RATINGS SCORE SNAPSHOT
Issuer Credit Rating: BB/Watch Neg/B
Business risk: Strong (2)
-- Country risk: Moderately high (4)
-- Industry risk: Low (2)
-- Competitive position: Strong (2)
Financial risk: Modest (2)
Preliminary anchor: a+
Clearing & settlement risk: (-3)
Modifiers
-- Diversification/portfolio effect: Neutral (no impact)
-- Capital structure: Neutral (no impact)
-- Liquidity: Adequate (no impact)
-- Management and governance: Satisfactory (no impact)
-- Comparable rating analysis: None (no impact)
SACP: bbb+
In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable. At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee by
the primary analyst had been distributed in a timely manner and
was sufficient for Committee members to make an informed decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.
The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.
The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.
RATINGS LIST
Ratings Still On CreditWatch
BM&FBOVESPA S.A-Bolsa de Valores, Mercadorias e Futuros
Counterparty Credit Rating BB/Watch Neg/B
Senior Unsecured BB/Watch Neg
BRAZILIAN FINANCE: Fitch Affirms & Withdraws B Short-Term IDRs
---------------------------------------------------------------
Fitch Ratings has affirmed and withdrawn its ratings for Brazilian
Finance & Real Estate (BFRE), Brazilian Securities Cia. de
Securitizacao (BS) and Brazilian Mortgages Cia. Hipotecaria (BM).
BFRE, BM and BS are fully owned subsidiaries of Banco Pan (Pan;
Long-Term Issuer Default Rating 'BB-'/Negative), fully
consolidated in the bank even as far as regulatory aspects.
Pan continues participating in the rating process and its ratings
continues being fully monitored by Fitch.
KEY RATING DRIVERS
Fitch is withdrawing the entities ratings as they have chosen to
stop participating in the rating process. Fitch will no longer
have sufficient information to maintain the ratings and,
accordingly, will no longer provide ratings or analytical coverage
for BFRE, BM or BS.
RATING SENSITIVITIES
Rating sensitivities are not applicable as the ratings have been
withdrawn.
Fitch has affirmed and withdrawn the following ratings:
Brazilian Finance & Real Estate S.A.
-- Long-Term Foreign and Local Currency Issuer Default Ratings
(IDRs) at 'BB-', Outlook Negative;
-- Short-Term Foreign and Local Currency IDRs at 'B';
-- Long-term National Rating at 'A+(bra)'; Outlook Stable;
-- Short-term National Rating at 'F1(bra)'.
Brazilian Mortgages Cia Hipotecaria
-- Long-Term Foreign and Local Currency IDRs at 'BB-', Outlook
Negative;
-- Short-Term Foreign and Local Currency IDRs at 'B';
-- Long-term National Rating at 'A+(bra)'; Outlook Stable;
-- Short-term National Rating at 'F1(bra)';
Brazilian Securities Cia de Securitizacao
-- Long-Term Foreign and Local Currency IDRs at 'BB-', Outlook
Negative;
-- Short-Term Foreign and Local Currency IDRs at 'B';
-- Long-term National Rating at 'A+(bra)'; Outlook Stable;
-- Short-term National Rating at 'F1(bra)'.
COSAN OVERSEAS: Moody's Affirms Ba3 Rating on Perpetual Bonds
-------------------------------------------------------------
Moody's Investors Service has affirmed the ratings of the notes
issued by Cosan Overseas Limited and Cosan Luxembourg S.A and
guaranteed by Cosan at Ba3. At the same time, Moody's America
Latina has affirmed Cosan S.A. Industria e Comercio corporate
family ratings at Ba2 (global scale) and Aa1.br (NSR). The outlook
was revised to negative from stable.
The action mirrors the change in outlook to negative from stable
of the rating of its subsidiary Raizen Combustiveis S.A. and
Raizen Energia S.A. (Ba1 negative), following the change in
outlook to negative from stable and affirmation of Brazil's issuer
rating and senior unsecured ratings at Ba2 and shelf ratings at
(P)Ba2, on May 26, 2017. Both Raizen and Cia de Gas de Sao Paulo
(Ba2 stable), from which the company draws the majority of its
cash flow, are constrained by Brazil's sovereign bond ratings.
Ratings affirmed:
Issuer: Cosan Luxembourg SA
- USD 49 million equivalent senior unsecured notes due 2018: Ba3
- BRL 163 million senior unsecured notes due 2023: Ba3
- USD 650 million senior unsecured notes due 2027: Ba3
Issuer: Cosan Overseas Limited
- USD 500 million perpetual bonds: Ba3
Outlook actions:
Revised to negative from stable
RATINGS RATIONALE
Cosan's Ba2 corporate family rating reflects the group's aggregate
credit risk, and is supported by the company's diversified
portfolio of businesses, including the entire sugar-ethanol chain,
fuel and gas distribution, and lubes in Brazil, and its adequate
liquidity profile. The company's diversification, especially
towards resilient businesses such as the fuel and gas
distribution, translates into a stable cash source over the long-
term. Moody's expects Raizen and Comgas to distribute a
significant amount of dividends over the next several years, which
will be the primarily liquidity source to service Cosan's
obligations.
Constraining the ratings is Cosan's ongoing corporate restructure,
likely high dividend upstream to Cosan Limited -- although the
company is expected to generate enough cash to fund those
dividends and reduce leverage -- and an acquisitive growth
history. Still, the company has not made any significant
acquisitions over the past few years and entered a deleveraging
path with strong dividends from Comgas and Raizen. Cosan no longer
proportionally consolidates its stake in Raizen, but Moody's
continue to incorporate Raizen's strengths, including its strong
cash generation, and risks, such as the exposure to the underlying
volatility of the sugar-ethanol business, in Cosan's ratings.
The bulk of Cosan's cash generation comes from dividends from
Raizen and Comgas and, consequently, Moody's see the debt at Cosan
S.A.'s level as structured subordinated to the debt at the
operating companies. The recent rating action affirming Raizen
ratings and changing the outlook to negative from stable followed
the action that affirmed Brazil's government bond rating to Ba2
and shelf ratings at (P)Ba2 and changed the outlook to negative
from stable. Although Moody's believes a significant portion of
Cosan's cash flows, represented by Raizen Combustiveis and Comgas,
is more resilient than the overall economy in Brazil, these
entities are not fully insulated from the deterioration in the
domestic environment.
The negative outlook on Cosan's ratings mirrors the negative
outlook on its subsidiary Raizen.
A downgrade of Cosan's ratings could result from negative rating
actions on Comgas or Raizen or if liquidity deteriorates. In
addition, the ratings could be downgraded if total adjusted debt
to EBITDA is sustained above 4.0x.
An upgrade of Cosan's ratings could result from positive rating
actions on Comgas or Raizen. In addition, the company would have
to maintain an adequate liquidity and gross leverage below 3.2x
(All pro-forma ratios including Raizen figures)
Headquartered in Sao Paulo, Cosan S.A. Industria e Comercio has a
50% stake in Raizen (Ba1/Aaa.br negative) and a 62.6% stake in
Comgas (Ba2/Aa1.br stable). With revenues of BRL 46.7 billion
(approximately USD 14.1 billion) as of LTM March 31, 2017, Raizen
is one of the global leading players in the sugar-ethanol segment
with an installed crushing capacity of 68 million tons and also
the third largest Brazilian fuel distributor, operating 6,043 gas
stations, mainly under the Shell brand name. Comgas, with annual
net revenues of approximately BRL 6.6 billion (approximately USD
2.2 billion) in the same period, is Brazil's largest gas
distributor, providing natural gas to industrial, residential,
commercial, automotive, thermal-power generation and co-generation
consumers. The company benefits from an attractive concession area
strategically located in one of the most densely populated and
economically robust regions in the country. Additionally, Cosan
produces and distributes automotive lubricants and base oil under
the Mobil brand name with net revenues of BRL 7.1 billion (USD
2.15 billion) as of LTM March 31, 2017.
The principal methodology used in these ratings was Global Protein
and Agriculture Industry published in May 2013.
==========================
C A Y M A N I S L A N D S
==========================
BBGP ODENSE: Shareholder to Receive Wind-Up Report on June 29
-------------------------------------------------------------
The shareholder of BBGP Odense Cayman Limited will receive on
June 29, 2017, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Fides Limited
c/o Oliver Propper
The Grand Pavilion, 2nd Floor, Commercial Centre
P.O. Box 10338 Grand Cayman
Cayman Islands KY1-1003
Telephone (345) 949 7232
CAP-ENDURANCE: Shareholder to Receive Wind-Up Report on June 29
---------------------------------------------------------------
The shareholder of Cap-Endurance Fund SPC will receive on
June 29, 2017, the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
Fides Limited
c/o Oliver Propper
Telephone (345) 949 7232
P.O. Box 10338 Grand Cayman
The Grand Pavilion, Commercial Centre, 2nd Floor
Cayman Islands KY1-1003
CRYSTAL II: Members' Final Meeting Set for June 23
--------------------------------------------------
The members of Crystal II Limited will hold their final meeting on
June 23, 2017, to receive 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
FR ENERGY: Shareholders Receive Wind-Up Report
----------------------------------------------
The shareholders of FR Energy Growth Capital Investor GP Ltd.
received on May 3, 2017, the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Daren Schneider
c/o Matt Bernardo
Telephone: +1 (345) 914 4268
GOOD HILL: Shareholder to Receive Wind-Up Report on June 14
-----------------------------------------------------------
The shareholder of Good Hill SPV Ltd will receive on June 14,
2017, at 10:00 a.m., the liquidator's report on the company's
wind-up proceedings and property disposal.
The company's liquidator is:
Good Hill Partners LP
c/o Daniella Skotnicki
Telephone: +1 (345) 949 9876
Facsimile: +1 (345) 949 9877
OBAIR INVESTMENT: Shareholders' Final Meeting Set for June 13
-------------------------------------------------------------
The shareholders of Obair Investment Ltd. will hold their final
meeting on June 13, 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:
Christopher Kennedy
c/o Omar Grant
P.O. Box 897 Grand Cayman KY1-1103
Windward 1, Regatta Office Park
Cayman Islands
Telephone: (345) 949-7576
Facsimile: (345) 949-8295
PILLERTON SERVICES: Shareholders' Final Meeting Set for June 21
---------------------------------------------------------------
The shareholders of Pillerton Services Ltd. will hold their final
meeting on June 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:
Pillerton Services Ltd.
Ricardo Araujo Ribeiral
Rua Cinco Nr 1041
Cidade Jardim cep 13500-040
Rio Claro - Sao Paulo
Brazil
S.A.C. OFFSHORE: Shareholders' Final Meeting Set for June 12
------------------------------------------------------------
The shareholders of S.A.C. Offshore Capital Funding, Ltd. will
hold their final meeting on June 12, 2017, at 9:00 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.
The company's liquidator is:
S.A.C. Capital Advisors, L.P.
c/o Kevin O'Connor
72 Cummings Point Road
Stamford, CT 06902
USA
Telephone: (203) 890 3896
TONGJITANG CHINESE: Shareholders' Final Meeting Set for June 13
---------------------------------------------------------------
The shareholders of Tongjitang Chinese Medicines Company will hold
their final meeting on June 13, 2017, at 9:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Richard Fear
c/o Kevin Butler
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
Telephone: (345) 814 7374
Facsimile: (345) 945 3902
WOOSTER OFFSHORE: Shareholders' Final Meeting Set for June 13
-------------------------------------------------------------
The shareholders of Wooster Offshore Fund, Ltd. will hold their
final meeting on June 13, 2017, at 9:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.
The company's liquidator is:
Richard Fear
c/o Kevin Butler
P.O. Box 2681 Grand Cayman KY1-1111
Cayman Islands
Telephone: (345) 814 7374
Facsimile: (345) 945 3902
====================
E L S A L V A D O R
====================
LA HIPOTECARIA: Fitch Affirms 'B-sf' Rating on Series A Notes
-------------------------------------------------------------
Fitch Ratings has affirmed the ratings of La Hipotecaria's El
Salvadorian cross-border transactions.
KEY RATING DRIVERS
Performance of the Underlying Assets: Delinquencies within the
underlying portfolios have performed in line with Fitch's
expectations. Such low delinquency levels can be partly explained
by the fact that the vast majority of the securitized loans
benefit from a direct deduction payment mechanism, which helps
mitigate willingness to pay risk. Cumulative +180-day
delinquencies represent 1.3% of the original pool balance in the
case of La Hipotecaria Eleventh Mortgage-Backed Notes Trust and 0%
in the case of La Hipotecaria Thirteenth Mortgage-Backed Notes
Trust due to its short history.
Increased Credit Enhancement: Credit Enhancement has built due to
the sequential nature of the structures. As of April 2016, it has
increased to 24.7% up from 22.2% observed during the same month of
last year in the case of La Hipotecaria Eleventh Mortgage-Notes
Trust and to 12.4% up from 12.0% observed at its inception in the
case of La Hipotecaria Thirteenth Mortgage-Backed Notes Trust.
Stability on excess spread provides additional enhancement.
Recoveries: As of March 2017, 32 loans reached 180+ days in the
case of La Hipotecaria Eleventh Mortgage-Notes Trust. Of those,
six have been foreclosed with a recovery of almost 100%. In the
case of La Hipotecaria Thirteenth Mortgage-Backed Notes Trust
there are no loans with delinquencies higher than 180 days.
Credit Quality of the Sovereign: El Salvador's Long-Term Foreign
Currency Issuer Default Rating (FC IDR) was last downgraded on
April 10, 2017 to 'CCC' and its Country Ceiling (CC) to 'B-'.
According to Fitch's 'Criteria for Country Risk in Global
Structured Finance and Covered Bonds' (September 2016), the
ratings of Structured Finance notes cannot exceed the CC of the
country of the assets, unless the transfer and convertibility
(T&C) risk is mitigated. While the transactions have sufficient
credit enhancement to be rated above the country's FC IDR, the
ratings remains constrained by the country ceiling and ultimately
linked to the ratings of El Salvador given the lack of mitigants
to T&C risk.
Credit Quality of Guaranty Provider: La Hipotecaria El Salvadorian
Mortgage Trust 2013-1 and La Hipotecaria El Salvadorian Mortgage
Trust 2016-1 certificates benefit from a payment guarantee by
Overseas Private Investment Corporation (OPIC) in the event funds
are insufficient to cover the monthly interest and final principal
payment of the notes. OPIC is backed by the full faith and credit
of the United States of America (U.S.; rated 'AAA', Outlook Stable
by Fitch).
RATING SENSITIVITIES
The rating of the series A notes on both, La Hipotecaria Eleventh
Mortgage-Backed Notes Trust and La Hipotecaria Thirteenth
Mortgage-Backed Notes Trust, are sensitive to changes in the
credit quality of El Salvador. A downgrade of El Salvador's
ratings, specifically its CC, would lead to a downgrade on the
notes. In addition, severe increases in foreclosure frequency and
prepayments as well as reductions in recovery rates could lead to
a downgrade of the notes.
The rating of series 2013-1 and 2016-1 certificates are sensitive
to changes in the credit quality of the U.S. sovereign as OPIC is
an agency of the U.S.
Fitch has affirmed the following ratings:
La Hipotecaria Eleventh Mortgage-Backed Notes Trust
-- $37.8 million series A notes at 'B-sf'; Outlook Negative.
La Hipotecaria El Salvadorian Mortgage Trust 2013-1
-- $33.75 million series 2013-1 certificates at 'AAAsf'; Outlook
Stable.
La Hipotecaria Thirteenth Mortgage-Backed Notes Trust
-- $39.6 million series A notes at 'B-sf'; Outlook Negative.
La Hipotecaria El Salvadorian Mortgage Trust 2016-1
-- $33.75 million series 2016-1 certificates at 'AAAsf'; Outlook
Stable.
=============
J A M A I C A
=============
UC RUSAL: Debt Pressure Reduced
-------------------------------
RJR News reports that UC Rusal will be able to pay dividends
without the approval of its lenders for the first time in at least
seven years after recent refinancing eased debt obligations.
The company, which has mining operations in Jamaica, conducted two
euro bond sales this year, according to RJR News.
That has helped change the way its net debt is calculated and will
allow the firm to make shareholder payments in line with its
policy whenever it wants, the report relays.
Vladislav Soloviev, Rusal's CEO, says the board still has a final
say, the report discloses.
Aluminum's recovery may also support dividend payments, with the
metal rising 13 per cent this year to above US$1,900 per ton, the
report adds.
As reported in Troubled Company Reporter-Latin America on Jan. 23,
2017, Fitch Ratings has assigned Russia-based aluminum company
United Company RUSAL a Long-Term Issuer Default Rating of 'B+' and
a Short-term IDR of 'B'. The Outlook on the Long-Term IDR is
Stable. Fitch has also assigned an expected senior unsecured
rating of 'B+(EXP) and Recovery Rating 'RR4' to Rusal Capital
D.A.C.'s planned notes issue. The ratings for Rusal's 100%-owned
subsidiary, Russia-based OJSC Rusal Bratsk (Bratsk), have also
been affirmed at Long-Term IDR 'B+' with Stable Outlook.
===========
M E X I C O
===========
GRUPO CEMENTOS: S&P Raises LT Corp. Rating to 'BB'; Outlook Stable
------------------------------------------------------------------
S&P Global Ratings raised its long-term corporate rating on Grupo
Cementos de Chihuahua, S.A.B. de C.V. (GCC) to 'BB' from 'BB-'.
The outlook is stable.
At the same time, S&P raised the issue-level rating on the $260
million senior secured notes due 2020 to 'BB' from 'BB-'. The
recovery rating remains '3', indicating S&P's expectation for
meaningful recovery (50%-70%; rounded estimate: 65%) in the event
of a payment default.
Following GCC's acquisition of various assets from CEMEX S.A.B. de
C.V. (global scale: BB-/Stable/--; national scale: mxA-
/Stable/mxA-2) in fourth quarter of 2016 for approximately
$306 million, consisting of one cement plant located in Texas;,
two cement terminals located in Amarillo and El Paso, Texas; and
the concrete, aggregates, asphalt and building materials
businesses in El Paso, Texas, and Las Cruces, New Mexico,the
company has, in S&P's view, strengthened its competitive position
across the central states of the U.S. and the northern state of
Mexico, Chihuahua.
The rating action reflects the rapid integration of these new
assets within GCC's system, which increased the company's scale of
operation, with a total installed cement capacity of 5.1 million
ton per year and which will allow the company to supply the
increasing demand in its markets of influence. In S&P's view, the
assets integration will further strengthen GCC's market position
in the states where it operates and reinforce its barriers to
entry against potential additional new players in those markets.
We also believe that with these new assets, GCC will further
consolidate its unique and strategic regional footprint and will
take advantage of its extensive and sophisticated distribution
network across the central states of the U.S. and the northern
state of Chihuahua, Mexico, allowing for economies of scale and
timely product distribution to its clients. Moreover, S&P
believes that the company will continue to capture considerable
synergies from the vertical integration of its system, which in
S&P's view, will enable its EBITDA margin to remain above 25% in
the future.
Although GCC has improved its competitive position in the markets
it operates, S&P believes that it still has a smaller scale and a
limited scope of operations compared with other multinational and
larger cement producers S&P rates across the globe.
S&P's updated base-case scenario considers that GCC will continue
to benefit from the favorable cement market conditions in the U.S.
and Mexico, which allows S&P to maintain its guidance for mid-
single digit volume growth and price increases in all of its
segments, coupled with the integration of its new assets for the
remainder of the year. Moreover, S&P expects GCC to maintain its
EBITDA margin above 25% in the next few years and that the company
will continue to keep its strict cost structure management. In
addition, although S&P expects GCC to execute additional expansion
capex in 2017, in order to capture increasing demand from South
Dakota and some of adjacent markets, the company is likely to
continue generating FOCF this year, and that capex should
normalize starting in 2018. In S&P's opinion, dividend
distribution will remain conservative, in line with the company's
prudent financial policy.
* MEXICO: Near Sugar Pact Agreement With U.S.
---------------------------------------------
Jacob M. Schlesinger at The Wall Street Journal reports that the
U.S. and Mexico are nearing an agreement that would avert a trade
war over Mexican sugar exports, Commerce Secretary Wilbur Ross
said.
"We are quite optimistic that our two nations are on the precipice
of an agreement we can all support," Mr. Ross said in a statement,
notes WSJ. "The two sides have come together in quite meaningful
ways."
At the same time, the Commerce secretary said negotiators won't
produce a final pact before the end of the day, Monday, June 5 --
the deadline he had set last month to fix new limits on Mexican
sugar sales in the U.S. before Washington would impose steep
duties on the imports, according to The WSJ.
As a result, Mr. Ross said he would extend the deadline by 24
hours, until the end of day Tuesday, June 6, "to allow the two
sides to complete final technical consultations," the report
relays.
The American sugar industry has complained that Mexican
competitors have been unfairly dumping-or selling below cost-their
products in the U.S. market, aided by improper government
subsidies, seeking new limits on the imports, the report
discloses. The Mexican sugar industry has said that if the U.S.
imposed duties on their sales, they would seek retaliatory
barriers on American high-fructose corn syrup, which dominates the
Mexican market, the report relays.
A spokesman for Mexico's Economy Ministry had no immediate comment
on the extension or the talks, the report notes.
The Commerce Department didn't disclose details of the emerging
agreement, but it is likely to include tighter limits on the
amounts and types of sugar products Mexicans can sell in the U.S,
the report discloses.
The roots of the dispute go back to 2008, when free trade in sugar
between the two countries was phased in under the 1993 terms fixed
by North American Free Trade Agreement between the U.S., Mexico
and Canada, the report relays. The subsequent surge in Mexican
sugar exports prompted U.S. industry complaints, the report notes.
The Obama administration threatened to impose penalties on Mexican
imports, but "suspended" the duties when the two sides in 2014
negotiated a settlement that imposed quotas and price controls on
Mexican exports, the report relays. After initially accepting the
pact, U.S. producers began complaining that it wasn't working as
intended, and a year later renewed their push for sanctions,
prompting the latest round of talks, the report adds.
======================
P U E R T O R I C O
======================
ACEMLA DE PUERTO RICO: Taps Aquino De Cordova as Accountant
-----------------------------------------------------------
ACEMLA de Puerto Rico, Inc. and Latin American Music Company, Inc.
seek approval from the U.S. Bankruptcy Court for the District of
Puerto Rico to hire an accountant.
The Debtors propose to hire Aquino, De Cordova, Alfaro & Co., LLP
and pay the firm a fixed monthly fee of $120 for the preparation
of their financial statements, balance sheet, employer payroll
return and corporate tax returns for the year ending December 31,
2017.
Aquino will also prepare the Debtors' projected financial
statements and other reports required by the court, and will
assist their legal counsel in the formulation of a plan of
reorganization.
The proposed compensation for these services includes a monthly
fee of up to $250.
Jorge Aquino Barreto, a certified public accountant employed with
Aquino, disclosed in a court filing that the firm is a
"disinterested person" as defined in section 101(14) of the
Bankruptcy Code.
The firm can be reached through:
Jorge Aquino Barreto
Aquino, De Cordova, Alfaro & Co., LLP
Cecilia's Place Suite C-1
#7 Rosa Street
Isla Verde, PR
Phone: (787) 253-9595
About ACEMLA de Puerto Rico Inc.
ACEMLA de Puerto Rico Inc. is one of the four "Performance Rights
Organization" (PRO), in the United States and No. 76 in the CISAC
world roster. It controls and licenses LAMCO's non-exclusive
performance rights and those of its affiliate music publisher's
editors and composers. This institution was created to defend the
Latin composer's rights in the United States and the world, and it
is as such that in 1985, by an appeal presented before the highest
federal court in this country, against a decision of the Copyright
Royalty Tribunal against ASCAP, BMI and SESAC, is successful, and
since then ACEMLA operates as the fourth society, or a performance
Rights Society (PRO), in the United States.
ACEMLA de Puerto Rico Inc. and Latin American Music Co Inc. filed
Chapter 11 petitions (Bankr. D.P.R. Case Nos. 17-02021 and
17-02023) on March 24, 2017. The Hon. Enrique S. Lamoutte Inclan
presides over the cases. Gratacos Law Firm, PSC, serves as
bankruptcy counsel.
In its petition, ACEMLA estimated assets of less than $500,000 and
liabilities of $1 million to $10 million. Latin American
estimated assets and liabilities of less than $1 million.
A list of ACEMLA's nine largest unsecured creditors is
available for free at http://bankrupt.com/misc/prb17-02021.pdf
COOPERATIVA DE SEGUROS: A.M. Best Affirms C+ FSR; Outlook Stable
----------------------------------------------------------------
A.M. Best has revised the outlooks to stable from negative and
affirmed the Financial Strength Rating of C+ (Marginal) and the
Long-Term Issuer Credit Rating of "b-" of Cooperativa de Seguros
de Vida de Puerto Rico (COSVI) (San Juan, Puerto Rico).
The revised outlooks reflect stability in COSVI's risk-adjusted
capital scores, largely driven by the aggregate excess of loss
reinsurance agreement established in 2015, which transferred the
risks of its annuity block and a significant portion of its Puerto
Rico bond portfolio.
The rating affirmations reflect COSVI's counter-party risk
exposure with an unrated reinsurer. A.M. Best is concerned that
COSVI might have to undo the reinsurance transaction if adverse
developments occur. Additionally, spread compression has
intensified as a result of the strategic investment changes
implemented, which has unfavorably impacted operating results.
The company is also challenged by the business operating
environment in Puerto Rico.
Partially offsetting factors include COSVI's efforts in executing
a number of risk-mitigating and capital-improvement strategies,
including the improvement in the credit quality of the bond
portfolio that was not part of the risk transfer executed through
the reinsurance agreement. Subsequently, changes to the company's
business mix have triggered a recalibration of the appropriate
level of reserves and is supported by high policyholder retention
rates.
================================
T R I N I D A D & T O B A G O
================================
CL FIN'L: "Give Us Back Our Company," Shareholders Say
------------------------------------------------------
Trinidad Express reports that shareholders of CL Financial,
represented by the United Shareholders Company Ltd, have
officially written to Finance Minister Colm Imbert demanding that
the Government exit the conglomerate and implement a re-payment
plan in short order.
Further, the shareholders intend to requisition a special general
meeting to remove Government-appointed chairman Dr. Rolph Balgobin
and install a chairman of their own, according to Trinidad
Express.
The letter, dated June 2, noted that the shareholders had hired
PricewaterhouseCoopers (PwC) and presented a CLF exit plan titled
"Project Rebirth" but no action has been taken on the matter, the
report notes.
Further, the Shareholders Agreement between CLF and the Government
has expired and no formal arrangement exists for the Government's
continued stay in the company, the report adds.
* * *
As reported in the Troubled Company Reporter-Latin America on Aug.
6, 2015, Trinidad Express reports that the Constitution Reform
Forum (CRF) has called on Finance Minister Larry Howai to refrain
from embarking on an "unnecessary drain on the Treasury" by
appealing the decision of a High Court judge, who ordered that the
Minister fulfil a request by president of the Joint Consultative
Council (JCC) Afra Raymond for financial details relating to the
bailout of CL Financial Limited. The CRF issued a release stating
that if the decision is appealed, not only will it be a waste of
finance but such a course of action will also demonstrate a "lack
of commitment by the Government to the spirit and intent of the
Freedom of Information Act FOIA", under which the request was
made, according to Trinidad Express.
On July 7, 2014, Trinidad Express said that the Central Bank has
placed the responsibility of voluntary separation package (VSEP)
negotiations for workers at insurance giant Colonial Life
Insurance Company Ltd. (CLICO) with the company's board, after
which it will review accordingly, the bank said in a statement.
The bank's statement follows protest action by CLICO workers,
supported by their union, the Banking, Insurance and General
Workers' Union (BIGWU), outside the Central Bank in Port of Spain,
according to Trinidad Express.
In a separate TCRLA report on June 26, 2014, Caribbean360.com said
that the Trinidad and Tobago government has welcomed an Appeal
Court ruling that the Attorney General Anand Ramlogan said saves
the country from paying out more than TT$1 billion (TT$1 = US$0.16
cents) to policyholders of the cash-strapped CLICO. The Appeal
Court overturned the ruling of a High Court that ruled members of
the United Policyholders Group (UPG) were entitled to be paid the
full sums of their polices. CLICO financially caved in on itself
at the end of 2008 after the investment instruments of major
policyholders matured and they wanted hundreds of millions of
dollars they were owed.
On Aug. 6, 2013, the TCR-LA, citing Caribbean360.com, said that
over TT$8 billion worth of CLICO's profitable business will be
transferred to Atruis, a new company that will be owned by the
state. The Trinidad Express said that the Cabinet approved the
transfer as the Finance and General Purposes Committee continues
to discuss a letter of intent hammered out by the Ministry of
Finance and CL Financial's 400 shareholders, which envisions
taxpayers will recover the more than TT$20 billion Government has
injected since 2009 to keep CL subsidiary CLICO and other
companies afloat.
At its annual general meeting in Sept. 2013, CL Financial
shareholders voted to extend the agreement with Government until
August 25, 2014, while Cabinet decides on a new framework accord
to recover the debt owed to Government through divestment of CL
subsidiaries, including Methanol Holdings, Republic Bank,
Angostura Holdings, CL World Brands and Home Construction Ltd.,
Caribbean360.com related. Proceeds from the divestment of these
assets will go toward Government's recovery of the billions it
pumped into CLICO.
TCRLA reported on Sep 22, 2011, Caribbean News Now, citing
Reuters, said that the cost of the Trinidad and Tobago
government bailout of CL Financial Limited is likely to rise to
more than TT$3 billion.
***********
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.
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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 Joseph Cardillo at
856-381-8268.
* * * End of Transmission * * *