/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/180122.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, January 22, 2018, Vol. 19, No. 15 Headlines A N T I G U A & B A R B U D A LIAT: Appoints New Chief Financial Officer A R G E N T I N A INDUSTRIAL AND COMMERCIAL: Moody's Rates Class VII Notes 'Ba3' B R A Z I L RIO ENERGY: Moody's Rates $550MM Senior Secured Notes 'B3' RIO ENERGY: Fitch Assigns B/B+ Long-Term IDRs; Outlook Stable C A Y M A N I S L A N D S AUTOPISTAS DEL NORDESTE: Fitch Affirms BB- IDR; Outlook Stable NOBLE HOLDING: Moody's Rates New $500MM Notes Due 2026 'B2' M E X I C O BRHCCB 07-2U: S&P Withdraws CCC LongTerm Ratings on Certificates MBIA MEXICO: Moody's Affirms 'Caa1' Global IFS Rating P A R A G U A Y PARAGUAY: Mexico OKs to Move Forward on Economic Cooperation Pact P E R U CAMPOSOL SA: S&P Raises Corp. Credit Rating to B+, Outlook Stable T R I N I D A D & T O B A G O CARIBBEAN GAS: Protest Cripples Plant Construction in La Brea TRINIDAD & TOBAGO: Poverty Pretenders Prevail in Country X X X X X X X X X * BOND PRICING: For the Week From January 15 to 19, 2018 - - - - - =============================== A N T I G U A & B A R B U D A =============================== LIAT: Appoints New Chief Financial Officer ------------------------------------------ Caribbean360.com reports that LIAT, operating as Leeward Islands Air Transport, disclosed the appointment of Rojer Inglis as chief financial officer. Mr. Inglis replaces Julie Reifer-Jones who assumed the office of chief executive officer last year. His appointment took effect from January 8, according to Caribbean360.com. The report notes that Mr. Reifer Jones, who is now chief executive officer of the Antigua-based airline, said Mr. Inglis is an asset to the company. "We are looking forward to working with Mr. Inglis at LIAT as he brings a wealth and variety of financial experience to the company, especially at this time when the airline industry is undergoing rapid changes," she said, the report relays. Prior to joining LIAT, Inglis, who is a Chartered Certified Accountant with membership of the Association of Chartered Certified Accountants (ACCA), worked for over 30 years in senior financial and leadership positions, the report notes. He was the chief financial officer of National Health Insurance Plan, Turks and Caicos and has held positions at WASA St Lucia and Cable & Wireless Barbados Ltd, the report says. The report relays that Mr. Inglis said he is looking forward to his role in helping the company as it works towards financial stability and sustainability. LIAT's management also expressed its gratitude to Andrea James who acted in the position of chief financial officer for the period of vacancy, the report relays. "Mrs. James, through her leadership of the finance department, was able to help us navigate some very turbulent times while the search for a chief financial officer took place," noted Mr. Reifer Jones, the report adds. About LIAT LIAT, operating as Leeward Islands Air Transport, is an airline headquartered on the grounds of V. C. Bird International Airport in Antigua. It operates high-frequency inter-island scheduled services serving 21 destinations in the Caribbean. The airline's main base is VC Bird International Airport, Antigua and Barbuda, with bases at Grantley Adams International Airport, Barbados and Piarco International Airport, Trinidad and Tobago. * * * The Troubled Company Reporter-Latin America, citing Trinidad Express, on November 24, 2016, reported that the Barbados government defended the operations of the cash-strapped regional airline, LIAT, even as opposition legislators called for it to be stop being a financial burden on the island. Both Prime Minister Freundel Stuart and his Finance Minister, Chris Sinckler, defended the airline, whose major shareholders are Antigua and Barbuda, Barbados, Dominica and St. Vincent and the Grenadines. Mr. Stuart, speaking in Parliament, said despite the criticism the value of the airline should not be underestimated that the Antigua-based LIAT remains important to Barbados. According to the TCR-LA in May 8, 2015, the Daily Observer said that LIAT was attempting to lose excess baggage as part of measures to make the carrier "a smaller airline in 2015." In a document, signed by Director of Human Resources Ilean Ramsey, eligible employees were asked to opt to apply for voluntary separation or early retirement packages to avoid being made redundant, according to The Daily Observer. TCRLA reported on Dec. 2, 2014, citing Caribbean360.com, that chairman of the shareholder governments of the financially troubled regional airline LIAT, Dr. Ralph Gonsalves said while he is unaware of the details regarding any possible retrenchment of employees, the airline needs to deal with its high cost of operations. The TCR-LA on March 10, 2014, citing Caribbean360.com, reported that LIAT said it will take "decisive action" to deal with unprofitable routes as the Antigua-based airline seeks to make its operations financially viable. On Sept. 23, 2013, the TCRLA, citing Trinidad and Tobago Newsday, reported that there's much upheaval at the highest levels of LIAT -- the Board and the Executive. Following the sudden resignation of Chief Executive Officer Captain Ian Brunton, David Evans replaced Mr. Brunton as chief executive officer. ================= A R G E N T I N A ================= INDUSTRIAL AND COMMERCIAL: Moody's Rates Class VII Notes 'Ba3' -------------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo (MLA) has assigned a Ba3 global local currency senior unsecured debt rating and an Aaa.ar Argentina national scale senior debt rating to Industrial and Commercial Bank of China (Argentina) S.A. (ICBC Argentina)'s Class VII inflation linked ("UVA") senior notes. The notes will be due 2020 and will amount up to ARS 1,000 million equivalent, issued under the bank's existing multi-currency USD250 million senior unsecured program. The outlook on ICBC Argentina's senior unsecured debt rating is stable. The following ratings were assigned to ICBC Argentina's Class VII local currency senior unsecured note issuances: -- Global local currency senior unsecured debt rating of Ba3; stable outlook -- Argentinean national scale local currency senior unsecured debt rating of Aaa.ar; stable outlook RATINGS RATIONALE ICBC Argentina's ratings consider the very high probability that the bank will receive financial support from its foreign parent, Industrial and Commercial Bank of China Limited (ICBC, A1 stable, baa2), in an event of stress. This very high probability of parental support offsets risks stemming from Argentina's operating environment, which while improving has historically been very volatile. As a result of the still uncertain operating environment, and considering banks' close credit linkages with their sovereigns, ICBC Argentina's standalone baseline credit assessment is constrained at the level of Argentina's B2 sovereign rating despite the bank's well-established and diversified franchise, adequate capitalization levels, and conservative risk management guidelines. The very high probability of parental support considers the parent's 80% ownership, shared branding, the bank's track record of conservative dividend payouts, the strategic fit of the Argentine subsidiary given China's growing economic links with Argentina, and the parent's strong public commitment to supporting its overseas subsidiaries. Although parent ICBC's own debt ratings benefit from a very high probability of support from the government of China given the bank's full state-ownership, Moody's does not believe that any financial support from the Chinese government to the bank would be permitted to flow through to the Argentine operation. Hence, Moody's uses ICBC's baseline credit assessment as the measure of its capacity to support its subsidiary, rather than its debt or deposit ratings. While ICBC Argentina's non-performing loans remain below the 2% industry average, asset risks have been gradually rising since 2016 as the bank's risk appetite has increased in line with improving economic conditions. In September 2017, NPLs ratio stood at 1.8%, up from 1.7% in 2016 and 1.4% in 2015 and are expected to increase further driven by rapid loan growth. ICBC Argentina's loan book grew 28.4% in the nine months ended in September 2017, representing real growth close to 6%. However, risks associated with the acceleration of loan growth and limited credit history in Argentina are partially mitigated by loan loss reserves that covered NPLs by an adequate 1.3 times. While rapid loan growth boosted net interest income by 8.5% in the nine months ended September 2017, the net interest margin nevertheless declined sharply to 10.7%, from 13.1% in calendar year 2016, reflecting the increasing competition in consumer lending, which is ICBC Argentina's main focus of expansion. Together with a drop in earnings from securities, this drove a drop in net income to tangible banking assets to 2.5% in September, from 3.4% at the end of 2016. While this ratio nevertheless remains high by global standards, earnings figures in Argentina are distorted by the high rate of inflation. However, thanks to a low dividend payout ratio, the bank's capitalization continues to provide adequate loss absorption, with tangible common equity equal to 10.4% of adjusted risk weighted assets in September 2017, despite rapid loan growth, supporting the bank's expansion strategy. WHAT COULD CHANGE THE RATING UP/DOWN The Ba3 global scale rating would face upward pressure if either Argentina's sovereign rating or ICBC's BCA were upgraded. Conversely, the global scale rating would face downward pressure if either the government of Argentina or ICBC were to be downgraded, or if there were indications of a decrease in the parent's willingness to provide support. The national scale rating could also face downward pressure if the parent were downgraded or appeared less willing to provide support. However, at this point, both the governments of Argentina and ICBC have stable outlooks and there is currently no reason to believe that the parent's willingness to support ICBC may be decreasing. =========== B R A Z I L =========== RIO ENERGY: Moody's Rates $550MM Senior Secured Notes 'B3' ---------------------------------------------------------- Moody's Investors Service has assigned a B3 rating to Rio Energy SA, UGEN SA and UENSA SA (together MSU Energy) up to $ 550 million senior secured notes. The rating outlook is positive. Proceeds from the $550 million notes will be used by MSU Energy companies, Rio Energy SA, UGEN SA and UENSA SA, co-issuers under the notes, to prepay debt acquired for the construction of three simple cycle thermal power plants located in Argentina. Each of the issuers will be jointly and severally liable for all obligations under the notes. RATINGS RATIONALE The B3 rating and positive outlook reflects Moody's understanding that the repayment of the notes will ultimately rely on stable and predictable cash flows provided by six long term power purchase agreements (PPAs) set or to be set at a fix fixed price. The issuer's offtaker on the PPAs is CAMMESA (Compa§°a Administradora del Mercado Mayorista ElÇctrico), the administrator of Argentina's wholesale electricity market. Moody's views the credit profile of CAMMESSA as being closely associated with the credit profile of the Government of Argentina, (B2 Stable). The issuers have already secured three fixed price PPAs for three simple cycle power plants for 10 years expiring in 2027. In addition, the issuers expect to enter into three additional 15 year, fixed price PPAs to convert the simple cycle plants into combined cycles as awarded by the country's Energy Secretariat in a public auction held on October 2017. The combined cycle PPAs' commercial operations date is programmed by June 2020. Moody's views favorably the PPAs with CAMMESA for both their long term nature and the fact that they entitle the issuers to receive fixed capacity payments based on availability, regardless of energy dispatch. As additional strength, cash flows won't be exposed to fuel price fluctuations since fuel will be provided by CAMMESA. Both the existing and future PPAs are and will be denominated in USD, materially reducing currency risk in Moody's view. The B3 rating also recognizes that the simple cycle plants have been delivered according to calendar. The three simple cycle plants are already in operations. Moody's understands that the issuers will develop an expansion plan to convert the simple cycle plants into combined cycle plants. A key credit consideration supporting the B3 is the lack of visibility that Moody's has regarding the contractual terms and conditions that will ultimately govern such potential expansion, At this point in time, the issuers have not yet entered into an Engineering, Procurement and Construction contract (EPC) or an Operations and Maintenance (O&M) contract for the combined cycles. Moody's would expect that such investment, if it occurs, would follow similar contractual conditions than those of the original simple cycle projects, incorporating well known and proven technology and equipment. While Moody's has developed certain assumptions to evaluate the expansion plan, including assuming only a moderate construction risk, the lack of contractual terms limits Moody's visibility on potential future cash flows resulting from the combined cycle plants. Regarding the simple cycle plants, the issuers have in place construction and long term service agreements with General Electric Company (GE, A2/Stable), a well-known equipment provider and supplier of the equipment for the plants. General Electric's involvement is credit positive. Day to day operations at the simple cycle plants will be performed by the issuers' own staff, under the supervision of GE in the first year, a credit concern given the limited track record of the issuers as operators in this industry. The B3 rating also takes into consideration a highly leveraged proposed debt structure consisting of a planned issuance of USD550 million of secured notes and the planned incurrence of additional pari passu debt of about USD325 million in 2020 to finance the combined cycle expansion. The secured notes will be repaid in one bullet payment in 2025 while the issuers plan to repay the debt related to the combined cycles in three installments starting in 2020 to fully amortize by 2023. Moody's views the planned amortization schedule as a credit weakness from a bondholder perspective since the combined cycle debt would have a longer tenor and be exposed to refinancing risk. Likewise Moody's observes that the proposed issuance lacks the standard structural protections for a project with no operating history, such as a trustee administered cash flow waterfall, or major maintenance accounts. The proposed issuance's supplemental liquidity consists of a six months debt reserve account (or next interest payment given the debt amortization structure). In addition, the reviewed draft debt documentation allows dividend distributions for up to 50% of the issuers' combined net income after certain covenants are met. The structure does not consider any mandatory cash sweep mechanism, thereby leaving bondholders exposed to a potentially aggressive financial policies despite the sponsor's stated commitment to a prudent distribution policy. The positive outlook reflects Moody's expectation of stable and predictable cash flows linked to CAMESSA that result from the simple cycle PPAs. The buildup of a consistent track record as operator together with a disciplined execution of the combined cycle project would result in longer tenor PPA's with additional cash flows that would be, overtime, supportive of a stronger credit profile. Over the outlook horizon, a rating upgrade would require that the issuers undertake their expansion plan with well-defined contractual standards, including defined costs for the construction and the equipment in terms and conditions that compare favorably to those of the simple cycles. Moody's would also expect to see high quality equipment providers, familiar with the market and capable of minimizing the potential frictions involved in the expansion of an existing asset. Quantitatively, an upgrade of the rating would require a ratio of funds from operations to debt in the low teens and debt service coverage ratio (only interest before expansion debt) of over 2.2 times. Given the positive outlook, a downgrade of the ratings is unlikely in the short term. However, if operational performance proves to be weaker than expected or the conditions to conduct the expansion investment are weaker than expected or poorly managed, the outlook could be revised to stable. Corporate Profile MSU Energy is an argentine, family owned conglomerate comprised by three special purpose vehicles or Sociedades Anonimas designed to participate in the power auctions performed by the Argentine Energy Ministry and the beneficiaries under the PPAs. Each of these companies, Uensa S.A., Ugen S.A. and Rio Energy S.A. own and operate a thermal simple cycle plant with 150 MW of nominal generation capacity each. The principal methodology used in this rating was Power Generation Projects published in May 2017. RIO ENERGY: Fitch Assigns B/B+ Long-Term IDRs; Outlook Stable ------------------------------------------------------------- Fitch Ratings has assigned for the first time the Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) of 'B' and 'B+', respectively, to Rio Energy S.A., UGEN S.A. and UENSA S.A. The Rating Outlook for the Foreign Currency Ratings is Positive, and the Rating Outlook for the Local Currency Ratings is Stable. A full list of ratings follows at the end of this release. Fitch has simultaneously assigned an expected rating of 'B(EXP)/RR4' to the proposed senior secured notes of up to USD550 million to be co-issued by Rio Energy S.A. (Rojo), UGEN S.A. (Barker) and UENSA (Villa Maria). Rojo, Barker and Villa Maria are thermal power generation plants each with a current capacity of 150MW, with Villa Maria scheduled to go online on Jan. 19, 2018. The co-issuers will be jointly and severally liable for any payment obligations under the notes. The proceeds from the issuance will be used to refinance existing debt at each entity and for general corporate purposes including working capital. Rio Energy, UGEN and UENSA's 'B+' Long-Term Local Currency IDR reflects the issuers' exposure to Argentina's high regulatory risk, counterparty risk to CAMMESA and lack of operating history. These risks are mitigated by their central role in fulfilling the country's high capital investment needs in the sector to reduce the energy deficit. The issuers' ratings also reflect their high leverage over the forecasted period. The issuers benefit from their long-term contract positions and predictable cash flows. Rio Energy, UGEN and UENSA's 'B' Long-Term Foreign Currency IDR is constrained by the Republic of Argentina's 'B' country ceiling, which limits the foreign currency rating of most Argentine corporates. Fitch's Country Ceilings are designed to reflect the risks associated with sovereigns placing restrictions upon private sector corporates, which may prevent them from converting local currency to any foreign currency under a stress scenario, and/or may not allow the transfer of foreign currency abroad to service foreign currency debt obligations. Since elected in December 2015, the Mauricio Macri administration removed FX controls introduced in 2011 and increased the flexibility of the Argentine peso, which should contribute towards improving the capacity of the economy to absorb external shocks and relieve pressure on international reserves. The Positive Rating Outlook reflects an improving backdrop for government policies that could support a stronger and more stable macroeconomic outlook, after a decade of weak and volatile performance. Recent midterm elections have improved confidence in the durability of the ongoing policy shift, which augurs well for investment and the sovereign's ability to maintain favorable financing access. The build-up in international reserves and a more flexible exchange rate confer greater policy flexibility to manage shocks. KEY RATING DRIVERS Improving Regulatory Risk: Fitch believes the recent resolutions implemented by the new government reflect a trend of less government interference and discretion in the power generation sector. The issuers operate in a highly strategic sector in which the government has historically had a role as the price/tariff regulator and had full control over the subsidies for industry players. Since 2013, the Secretariat of Energy introduced material changes to the structure and operation of the wholesale electricity market (WEM). Since 2013, the tariffs have almost doubled. Additionally, the Ministry of Mining and Energy, under Resolution 22/2016 adjusted the spot price tariffs for energy sales under the Energia Base framework. Counterparty Exposure: The issuers depend on payments from CAMMESA, which acts as an agent on behalf of the Mercado Mayorista Electrico (MEM), an association representing agents of electricity generators, transmission, distribution and large consumers. Payments from CAMMESA can be volatile, given that the agency depends on the national government for funds to make payments. Electric companies in Argentina are exposed to delays in payment from CAMMESA and also to risks in fuel supply, as the government's agency centralizes the country's fuel imports. During the past couple of years, CAMMESA has at times delayed payments to market participants due to deficits in the electricity market. The new resolutions have started reducing CAMMESA's deficit and are aimed at supporting the industry sustainability in order to balance the supply/demand dynamics. Solid Contractual Position: The issuers' cash flow generation stability and predictability is strong and supported by the companies' contractual strategy, which minimizes exposure to the spot market. For 2018, the company has 100% of its installed single-cycle capacity contracted under 10-year fixed price and volume power purchase agreements (PPAs) with CAMMESA. The companies have also entered into similar long term PPAs with CAMMESA for their planned conversion to combined cycle, which the issuers expect to complete in March 2020. Moderately High Leverage; Adequate Interest Coverage: Fitch's forecasts assume the issuers leverage levels defined as total adjusted debt/EBITDA will peak at 5.8x in 2018 and remain flat at around 5.0x through 2020, which assumes the issuers will raise an additional USD350 million of debt to finance its expansion plan in 2020. The proposed notes benefit from adequate interest coverage provided by the 10-year simple-cycle PPAs contributing to a stable source of cash flow. Fitch's base case assumes the issuers will average an interest coverage ratio of 2.0x in 2018. Even with this additional debt, Fitch estimates the issuers will remain within the interest coverage ratios set by the covenants of greater than or equal to 2.0x interest expense. Lack of Operational History: The issuers' ratings also reflect the companies' very short operational history, which is a concern for the rating. The companies have hired experienced personnel to manage its operations and entered into an operations and maintenance (O&M) agreement with General Electric (A+/Negative) for the life of the PPAs to supervise operations and train MSU staff, which mitigates the short operational track record. This concern is also mitigated by the plants proven technology and access to fuel supply. The rating reflects the assumption that the issuers will retain General Electric through the life of the PPA. Potential Parent Support: The issuers may benefit from an implicit support from its parent, MSU group (Uribelarrea family). MSU group has shown a strong commitment to support the launch of MSU Energy by using its own farm land as collateral to raise funds in launching the projects. Fitch believes the group will remain committed to assuring MSU Energy achieves its operational and financial obligations, and will step in to support the business if needed. DERIVATION SUMMARY Rio Energy, UGEN and UENSA are constrained by the country ceiling of Argentina. Notwithstanding, the issuers consolidated pro forma credit metrics are aligned to its local and regional peers. Fitch estimates the issuers consolidated gross leverage for 2018 to be 5.8x deleveraging to an average of 5.0x through 2020, which assumes additional debt to be raised in 2020 when the combined cycle conversion will be completed. Compared to its Argentine peers, the issuers pro forma gross leverage is above Fitch's estimated 2018 median of 3.0x. The issuers leverage is consistent with the 'B' rating category. The issuers are given a one notch uplift to 'B+' due to their solid contractual positions with 10- year PPAs, and the fact it has retained General Electric to supervise operations through the life of its PPAs. Fitch estimates leverage to be positively impacted once the combined-cycle conversion is completed, adding 300MW of installed capacity. Regional peers include Peruvian generators, Orazul Energy Egenor S. en C. por A. (BB/Stable) and Kallpa Generacion (BBB-/Stable). Unlike its Argentine peers, Peruvian utilities are not constrained by a country ceiling, and the operating environment in Peru has historically been more stable and open, where generation companies are on average exposed to higher credit quality off takers, and benefit from greater diversification in their counter party risk. Orazul Energy Egenor shows a similar capital structure to the issuers, with leverage estimated to be above 5.0x expected through the rating horizon. Its high leverage is mitigated by its asset diversification. Additionally, Orazul's natural gas production business makes it uniquely vertically integrated among Peruvian generation companies. Kallpa Generacion S.A., which is one of Peru's largest thermal generators is estimated to have a leverage consistently below 3.0x. Further, it is expected to merge with sister company Cerro del Aguila S.A. (BBB-/Stable) (making the entity Peru's largest privately-owned generation company with an installed capacity of 1,600 MW). The merged entity will temporarily have leverage at 5.0x before settling around the 3.5x level in the next few years. KEY ASSUMPTIONS Fitch's Key Assumptions Within Its Rating Case for the Issuer -- Installed capacity of 450MW from 2018-2019 followed by 750MW starting in March 2020; -- Simple cycle PPAs granted under SEE 21/2016. Fixed Payment Rate (USD/MW-month) of USD20,900 for General Rojo, USD19,900 each for Villa Maria and Barker; -- Variable Payment Rate (USD/MWh) of USD8.50 for Natural Gas and USD12.50 for fuel oil; -- Through March 2020, natural gas will be the primary source of fuel except for the summer months (May through October), after which, liquid fuel oil will only be used for the month of August; -- Early standby payment for Barker and Villa Maria starting in July 2018 through December 2019 of USD7,000 MW-month with full conversion starting in March 2020 with a Fixed Payment Rate (USD/MW-month) of USD18,800 for the additional 100MW; -- Early standby payment for Rio General for January 2019 of USD7,000 MW-month with full conversion starting January 2020 with a Fixed Payment Rate (USD/MW-month) of USD18,900 for the additional 100MW. RATING SENSITIVITIES Developments That May, Individually or Collectively, Lead to Positive Rating Action -- An upgrade to the ratings of Argentina could result in a positive rating action; -- Maintain a gross leverage ratio of below 5.0x on a consistent basis. Developments That May, Individually or Collectively, Lead to Negative Rating Action -- Given the issuers high dependence on the subsidies by CAMMESA from the Treasury, any further weakening of Argentina's fiscal accounts could have a negative impact on the company's collections/cash flow; -- A significant deterioration of credit metrics and/or significant payment delays from CAMMESA; -- A downgrade of Argentina's ratings would result in a downgrade of the issuers ratings, given that the company's ratings are constrained by the sovereign's credit quality. LIQUIDITY Fitch assumes that the issuers will refinance all existing debt with the proceeds of their proposed USD550 million senior secured notes offering due 2025. Fitch estimates a total debt to EBITDA leverage ratio of 5.8x in 2018 and annual interest expenses coverage ratio of 2.0x. As of September 2017 on a combined basis, the issuers reported available cash of USD21 million covering less than 50% of estimated pro forma interest expense. Nonetheless, Fitch believes the co-issuers liquidity is supported by its stable and predictable cash flow generation from its contractual structure. Fitch expects the issuers will be able to comply with the proposed interest rate coverage ratio of greater than or equal to 2.0x through the life of the bond even when ignoring the expansion of the single-cycle plants to combined-cycle. FULL LIST OF RATING ACTIONS Fitch has assigned the following ratings: Rio Energy S.A. -- Foreign Currency Long-Term Issuer Default Rating (IDR) 'B'; Outlook Positive; -- Local Currency Long-Term IDR 'B+'; Outlook Stable. UGEN S.A. -- Foreign Currency Long-Term IDR 'B'; Outlook Positive; -- Local Currency Long-Term IDR 'B+'; Outlook Stable; UENSA S.A. -- Foreign Currency Long-Term IDR 'B'; Outlook Positive; -- Local Currency Long-Term IDR 'B+'; Outlook Stable; Rio Energy S.A., UGEN S.A., UENSA S.A. -- Co-issued USD550 million senior secured proposed notes due 2025 'B(EXP)/RR4'. ========================== C A Y M A N I S L A N D S ========================== AUTOPISTAS DEL NORDESTE: Fitch Affirms BB- IDR; Outlook Stable -------------------------------------------------------------- Fitch Ratings has affirmed Autopistas del Nordeste (Cayman) Ltd's (AdN) notes at 'BB-'. The Rating Outlook is Stable. The notes are due in 2026 and have an outstanding balance of USD141.8 million. KEY RATING DRIVERS The rating is supported by the minimum revenue guarantee (MRG) paid by the Dominican Republic's government, which largely mitigates the project's volume and price risks, as toll revenues remain persistently insufficient to cover operational costs and debt service. It also reflects a flexible debt structure with principal payments that can be deferred for two years if needed and robust liquidity in the form of the typical reserve accounts and additional resources retained by the stockholders within the project to face its operational and financial obligations should delays in receipt of the MRG continue or increase significantly. Considering the MRG cash inflows, Fitch's rating case yields a solid debt service coverage profile with minimum and average debt service coverage ratio (DSCR) of 1.44x and 1.60x, respectively, considered strong for the rating category according to applicable criteria. AdN's rating is capped by the Dominican Republic's sovereign rating. Fitch believes the delays in the payment of the MRG are not signs of the sovereign's incapacity or unwillingness to pay but rather a strategic use of the financial flexibility offered by the project's liquidity position and a reflection of the complex administrative process needed to make budget appropriations. If such a buffer was not available, Fitch believes the government would try and reduce the payment cycle. The presence of Multilateral Investment Guarantee Agency (MIGA) insurance may also incentivize the government to treat the MRG as a senior expenditure. Adequate Governmental Support: The government of the Dominican Republic pledged under the concession agreement in 2001 an MRG that protects noteholders from the risk of insufficient traffic over the life of the notes. The government has continued to honor this pledge, and Fitch expects required payments to be made over the life of the notes. The government also offers a SBLC required under the concession agreement to provide additional support to the transaction. Financial Guarantee: The notes benefit from a partial political risk guarantee provided by the MIGA, a member of the World Bank Group. A failure by the government to honor the MRG would be covered under this guarantee; however, disbursements can be delayed, and internal liquidity is essential to the project's capacity to service debt. Fitch believes the MIGA guarantee provides additional incentives for the government to honor its obligations under the concession. Low Volume Touristic Asset [Revenue Risk - Volume: Weaker]: The toll road connects Santo Domingo and the northern province of Samana. It provides an efficient route but has competing free alternatives. Moreover, despite robust gains in recent years, actual traffic remains far below initial projections requiring substantial payments via the MRG. This dependence on external revenues is expected to continue in the near to intermediate term. Regular Toll Increases [Revenue Risk - Price: Midrange]: The operator of the road is able to increase tolls annually by inflation under the concession agreement and has historically completed annual rate adjustments without issue. Predictable Operating Costs [Infrastructure Development & Renewal: Midrange]: A fixed operation and maintenance (O&M) agreement with an experienced toll road operator. The project benefits from oversight from an independent engineer who provides quarterly reports on the overall condition of the toll road along with current and future maintenance needs. There is a 12 month major maintenance reserve account. Conservative Debt Structure [Debt Structure: Stronger]: The notes are fully amortizing, fixed-rate obligations with typical project finance covenants. Liquidity available within the structure includes a six-month debt service reserve account, working capital voluntarily contributed by the stockholders, among others. Additional flexibility is also available as targeted principal amortization on the notes is deferrable. Financial Profile The project's rating case ratios are strong for the rating category with minimum and average DSCRs at 1.44x and 1.60x, respectively. The rating is capped by the Dominican Republic's sovereign rating. PEER GROUP Given AdN's revenue profile, the most comparable transactions are P.A. Pacifico 3 and P.A. Costera, two Colombian toll road transactions rated at 'BBB-', with revenues that are mostly dependent on grants and traffic top up payments by the concession's grantor. AdN's rating case credit metrics compare well with those of the Colombian transactions, which present LLCRs in the 1.3x-1.4x range. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Negative Rating Action: -- A negative rating action on the Dominican Republic below the rating of the project. -- Annual cash flows from operations, without considering MRG payments, plus all available cash below 1.5x debt service in a sustained basis. Future Developments That May, Individually or Collectively, Lead to Positive Rating Action: -- A positive rating action on the Dominican Republic's sovereign rating NOBLE HOLDING: Moody's Rates New $500MM Notes Due 2026 'B2' ----------------------------------------------------------- Moody's Investors Service assigned B2 ratings to Noble Holding International Limited's proposed offering of $500 million of senior guaranteed notes due 2026. The company's existing ratings were affirmed, including the B3 Corporate Family Rating (CFR), Caa1 senior unsecured notes ratings and SGL-2 Speculative Grade Liquidity Rating. The rating outlook remains negative. Noble is an indirect wholly owned subsidiary of Noble Corporation plc, a publicly traded offshore drilling company. The proposed senior guaranteed notes will be unsecured but will be guaranteed by certain Noble subsidiaries. The proceeds of the notes offering, together with cash on hand, will be used to repurchase outstanding notes as outlined in a simultaneously announced tender offer for an aggregate purchase price of up to $750 million of existing senior notes maturing in 2018 through 2024, with priority given to nearer-term maturities. "The new notes refinance nearer-term debt maturities, strengthening Noble's liquidity as it navigates through weak offshore drilling market conditions," said Pete Speer, Moody's Senior Vice President. "The new notes benefit from subsidiary guarantees that provide a structurally superior claim to Noble's rigs compared to the existing senior notes, resulting in the higher B2 rating." Assignments: Issuer: Noble Holding International Limited -- Senior Unsecured Notes, Assigned B2 (LGD3) Outlook Actions: Issuer: Noble Holding International Limited -- Outlook, Remains Negative Affirmations: Issuer: Noble Drilling Corporation -- GTD Senior Unsecured Notes, Affirmed B3 (LGD4) -- Issuer: Noble Holding International Limited -- Probability of Default Rating, Affirmed B3-PD -- Speculative Grade Liquidity Rating, Affirmed SGL-2 -- Corporate Family Rating, Affirmed B3 -- Senior Unsecured Shelf, Affirmed (P)Caa1 -- GTD Senior Unsecured Notes, Affirmed Caa1 (LGD4) RATINGS RATIONALE The assigned B2 rating on Noble's proposed senior guaranteed notes is one notch higher than the B3 CFR, reflecting the new notes' structurally superior position in Noble's capital structure relative to the existing senior notes. The new notes are senior unsecured but will be guaranteed by intermediate holding company subsidiaries, effectively giving the new notes a priority claim to the company's assets over the existing senior notes that do not have subsidiary guarantees. However, the new notes will be structurally subordinated to the company's $1.5 billion revolving credit facility, which has operating subsidiary guarantees that provide a priority claim to the large majority of Noble's drilling rigs. Given the substantial oversupply of rigs in offshore drilling markets and uncertain valuations, Moody's views the B2 rating assigned to the new notes as more appropriate than the B1 rating that is indicated under Moody's Loss Given Default Methodology. Noble's existing senior notes are rated Caa1, or one notch below the B3 CFR, reflecting their structural subordination to the $1.5 billion revolver and the new senior guaranteed notes. The senior notes issued by Noble Drilling Corporation (NDC, $202 million outstanding and assumed by Noble Holding (US) LLC) are either co- issued by or guaranteed by certain subsidiaries that provides these notes with a structurally superior claim to a small number of Noble's drilling rigs compared to Noble's existing senior notes. Given the benefit of this priority claim to certain assets and the amount of notes outstanding, the NDC notes are rated B3, which Moody's views as more appropriate than the Caa1 rating assigned to Noble's existing senior notes. The NDC notes mature in March 2019 and are included in the tender offer. Noble's B3 CFR reflects the company's deteriorating margins and cash flow, high financial leverage and limited prospects for meaningful recovery through 2019 based on weak fundamental conditions for offshore drilling, particularly in deepwater markets. The B3 rating is supported by the company's good liquidity, manageable debt maturities through 2022 and contracted revenue backlog which provides visibility to positive free cash flow generation in 2018. Noble's credit profile also benefits from the company's relatively newer rig fleet that is predominantly high specification, placing it in a good competitive position to operate in all major global offshore markets without requiring significant further capital investments when demand ultimately begins to recover. Moody's expects Noble to maintain good liquidity through mid-2019, as indicated by the SGL-2 rating. At September 30, 2017, the company had $609 million of cash. In December 2017 the company entered into a new $1.5 billion bank credit facility that matures in January 2023 and is fully undrawn. The new revolver's covenants include a minimum liquidity requirement, maximum consolidated indebtedness to total capitalization, minimum rig value to total revolver commitments and other guarantor debt, and minimum value of rigs wholly owned by the subsidiary guarantors to total rig value (as defined in the agreement). Moody's expects that the company will maintain good headroom for future compliance with these new covenants through at least mid-2019. Noble's liquidity will also benefit from $300 million of remaining borrowing availability commitments under its prior revolving credit facility that matures in January 2020. Moody's expects Noble to generate modest free cash flow in 2018, based on its backlog and maintenance capital spending levels since the company has no new rigs under construction. The cash balance and revolving credit facilities provide ample liquidity to address working capital needs or if cash flow falls short of forecasts, and any remaining debt maturities through 2019 following the tender offer. The outlook is negative, reflecting the risk that a meaningful and sustained offshore drilling recovery could still be several years away, particularly given the oversupply of deepwater and ultradeepwater rigs. The ratings could be downgraded if interest coverage (EBITDA/Interest) approaches 1x, the company generates significant negative free cash flow or its liquidity weakens. In order to consider a ratings upgrade, Noble will have to achieve sequential increases in EBITDA in an improving offshore drilling market such that its interest coverage (EBITDA/Interest) exceeds 2x and the company generates meaningful free cash flow to reduce debt and maintain good liquidity. Noble Holding International Limited is a wholly owned subsidiary of Noble Corporation, a Cayman Island company (Noble-Cayman), which is a wholly owned subsidiary of Noble Corporation plc (Noble plc), a company incorporated under the laws of England and Wales, and a leading international offshore oil and gas drilling contractor. Noble Holding International Limited is the issuer of the substantial majority of the company's rated debt, and therefore the CFR is assigned to that company. Noble Holding International Limited's senior notes and the NDC senior notes are fully and unconditionally guaranteed by Noble-Cayman.f =========== M E X I C O =========== BRHCCB 07-2U: S&P Withdraws CCC LongTerm Ratings on Certificates ---------------------------------------------------------------- S&P Global Ratings withdrew its 'CCC (sf)' global scale and 'mxCCC (sf)' CaVal national scale long-term ratings on the BRHCCB 07-2U certificates, which correspond to a Mexican residential mortgage-backed securities transaction originated by Hipotecaria Su Casita, S.A. de C.V. (not rated) and serviced by Adamantine Servicios S.A. de C.V. (not rated). Additionally, S&P withdrew the 'D (sf)' SPUR on class BRHCCB 07-2U. S&P said, "The ratings' withdrawals occur after the withdrawal of our long-term ratings on MBIA Mexico, the notes' guarantor. For an insured class of notes, our rating is generally the higher of the rating on the insurer or the Standard & Poor's underlying rating (SPUR) on the tranche. A SPUR is our opinion of the stand-alone creditworthiness of an obligation -- that is, the capacity to pay debt service on a debt issue according to its terms -- without considering an otherwise applicable bond insurance policy." Prior to its withdrawal, the 'D (sf)' SPUR rating on the senior class reflected the fact that without the insurance provided by MBIA Mexico, the securitized portfolio did not generate enough cash flow to fully cover the interest payments of senior class BRHCCB 07-2U. The national scale rating on the subordinated class BRHCCB 07-3U remains unchanged at 'D (sf)'. RATINGS WITHDRAWN Hipotecaria Su Casita - Bursatilizaciones de Hipotecas Residenciales III Rating Class To From BRHCCB 07-2U NR CCC (sf) BRHCCB 07-2U NR mxCCC (sf) BRHCCB 07-2U SPUR NR D (sf) NR--Not rated. SPUR--Standard & Poor's underlying rating. MBIA MEXICO: Moody's Affirms 'Caa1' Global IFS Rating ----------------------------------------------------- Moody's de Mexico has affirmed MBIA Mexico S.A. de C.V.'s (MBIA Mexico)'s Caa1 global local currency insurance financial strength (IFS) rating, and its B3.mx national scale IFS rating. The outlook of both ratings remains developing. This rating action follows Moody's Investors Service's affirmation of MBIA Insurance Corporation's Caa1 IFS rating, with a developing outlook, announced earlier. RATINGS RATIONALE Moody's said that the ratings affirmation of MBIA Mexico reflect the firm's limited stand-alone resources, its insurance of two underperforming RMBS transactions and its ownership by MBIA Insurance Corporation (MBIA Corp., Caa1 IFS, developing) that provides support in the form of reinsurance and net worth maintenance agreements, as well as technical oversight. MBIA Mexico's developing outlook better reflects the recent rating action on MBIA Corp., given the strong linkages between both entities. Even when MBIA Mexico's financial resources are sufficient to cover its medium-term obligations, the company's credit worthiness is ultimately constrained by its limited resources and MBIA Corp.'s credit profile. Moody's said that MBIA Mexico's ratings could be upgraded if MBIA Corp.'s IFS rating is upgraded. Conversely, the company's ratings could be downgraded if MBIA Corp.'s IFS rating is downgraded, or in case of significant deterioration in the MBIA Mexico's capital adequacy. During the third quarter ended September 30, 2017, MBIA Mexico S.A. de C.V. reported gross premiums written of MXN12.2 million and net loss of MXN6.5 million. As of that date, total assets were MXN317.9 million, and shareholders' equity were MXN181.9 million. The period of time covered in the financial information used to determine MBIA Mexico, S.A. de C.V.'s rating is between January 1, 2013 and September 30, 2017. =============== P A R A G U A Y =============== PARAGUAY: Mexico OKs to Move Forward on Economic Cooperation Pact ----------------------------------------------------------------- EFE News reports that Paraguayan President Horacio Cartes and his Mexican counterpart, Enrique Pena Nieto, agreed to move forward with talks leading to an economic cooperation agreement during the Mexican leader's first visit to Asuncion. "We have agreed to move forward in 2018, the last year in office for both of us, . . . to make the economic cooperation agreement a reality," said Pena Nieto at a press conference after his meeting with Mr. Cartes at the presidential residence, according to EFE News. The bilateral trade talks were launched in August 2016, when Mr. Cartes visited Mexico and the two men signed an agreement on the particular terms of the economic cooperation pact and a memorandum of understanding on productive links, the report relays. The two nations agreed at the time to negotiate an economic trade pact that would allow them to reduce tariffs between their countries on a large number of products, the report notes. In his remarks after the meeting, Mr. Cartes said that "the accord seeks to broaden in an exponential way our bilateral trade by improving the facilities and conditions pertaining to that," the report relays. "Also, . . . we agreed on cooperation regarding direct investments destined for development and modernization," said Mr. Cartes, the report notes. The two leaders also discussed security relations, and Pena Nieto said that they drafted a bilateral memo of understanding on the subject, the report relays. "I hail, although it hasn't been signed here, the fact that we have concluded the negotiations on the memo of understanding regarding security and defense to share information and experiences in this area," the Mexican president said, the report relays. The report notes Mr. Cartes also mentioned the security agreement and said that both Mexico and Paraguay agreed to strengthen the "policies and programs focused on improving physical and legal security, in addition to the fight against drug trafficking, smuggling and terrorism." ======= P E R U ======= CAMPOSOL SA: S&P Raises Corp. Credit Rating to B+, Outlook Stable ----------------------------------------------------------------- During the first nine months of 2017, Camposol SA's solid revenue growth and improving operating performance have resulted in better-than-expected financial metrics, a trend that S&P Global Ratings expects will continue throughout 2018. S&P Global Ratings is thus raising its global scale corporate credit rating on Camposol S.A. to 'B+' from 'B-'. S&P also raised its issue-level rating on the company's $147.5 million senior secured notes due 2021 to 'B+' from 'B-'. The outlook is stable. During the first nine months of 2017, Camposol has posted better than expected EBITDA margins and credit metrics mainly thanks to higher revenue related to increased volumes and prices in avocados, blueberries, and shrimps, coupled with operating efficiencies thanks to better harvesting yields and intensive shrimp ponds. S&P said, "We expect Camposol to continue posting solid sales and EBITDA margins above 26% in the next 12 months, leading to stronger credit metrics. We forecast a debt-to-EBITDA ratio below 3.0x and an EBITDA interest coverage above 5.0x in 2018 and 2019." ================================ T R I N I D A D & T O B A G O ================================ CARIBBEAN GAS: Protest Cripples Plant Construction in La Brea ------------------------------------------------------------- Trinidad Express reports that the PROTEST by workers constructing the Caribbean Gas Chemical Limited (CGCL) Plant in La Brea, has stopped the project, resulting in its shutdown. According to Corporate Affairs Manager Josieann Richards, no construction works is being carried out at the site, the report notes. She said the contractor and sub-contractors have met with representatives for the workers and discussions are ongoing regarding the workers' demands, according to Trinidad Express. The report relays that workers began their protest action, citing several concerns they wanted management to address. These included health and safety concerns, lack of equipment, faculty equipment and machinery and an increase in wages, were among some of their concerns, the report relays. One worker, who wished not to be named fearing discrimination said the workers come to the jobsite only to protest then leave, the report notes. La Brea Member of Parliament Nicole Olivierre has made an appeal for workers to end the protest, the report says. She said that jobs were scare and that the energy sector is facing a difficult period, the report adds. TRINIDAD & TOBAGO: Poverty Pretenders Prevail in Country -------------------------------------------------------- Trinidad Express reports that there are people in Trinidad and Tobago who are pretending to be poor and "masquerading poverty" and accessing social services like food cards, economist and former chairman of the Economic Development Advisory Board Dr. Terrence Farrell has said. "Our politicians and our public servants have to be able to discern real need and real vulnerability from the rent-seeking behaviour of this picaroon society," Mr. Farrell urged, the report relays. Mr. Farrell said while the Government had a social obligation to protect those who are poor, in the face of the economic challenges these persons must be clearly identified, the report adds. ================= X X X X X X X X X ================= * BOND PRICING: For the Week From January 15 to 19, 2018 -------------------------------------------------------- Issuer Name Cpn Price Maturity Country Curr ----------- --- ----- -------- ------- --- BA-CA Finance Cayman Lt 0.518 62.07 KY EUR AES Tiete Energia SA 6.7842 1.109 4/15/2024 BR BRL Argentina Bogar Bonds 2 39.36 2/4/2018 AR ARS Automotores Gildemeister 8.25 73.25 5/24/2021 CL USD Automotores Gildemeister 6.75 67 1/15/2023 CL USD Automotores Gildemeister 8.25 73.25 5/24/2021 CL USD Automotores Gildemeister 6.75 65.5 1/15/2023 CL USD CA La Electricidad 8.5 63.664 4/10/2018 VE USD Caixa Geral De Depositos 1.439 63.167 KY EUR Caixa Geral De Depositos 1.469 KY EUR CSN Islands XII Corp 7 68 BR USD CSN Islands XII Corp 7 66.266 BR USD Decimo Primer Fideicomiso 6 53.225 10/25/2041 PA USD Decimo Primer 4.54 43.127 10/25/2041 PA USD Dolomite Capital 13.217 73.108 12/20/2019 CN ZAR Enel Americas SA 5.75 56.172 6/15/2022 CL CLP Gol Linhas Aereas SA 10.75 35.861 2/12/2023 BR USD Gol Linhas Aereas SA 10.75 35.601 2/12/2023 BR USD Inversora Electrica 6.5 67.625 9/26/2017 AR USD Inversora Electrica 6.5 67.625 9/26/2017 AR USD MIE Holdings Corp 7.5 64.78 4/25/2019 HK USD MIE Holdings Corp 7.5 64.982 4/25/2019 HK USD NB Finance Ltd 3.88 61.816 2/7/2035 KY EUR Noble Holding 7.7 74.433 4/1/2025 KY USD Noble Holding 5.25 56.279 3/15/2042 KY USD Noble Holding 8.7 71.881 4/1/2045 KY USD Noble Holding 6.2 60.129 8/1/2040 KY USD Noble Holding 6.05 58.38 3/1/2041 KY USD Odebrecht Finance Ltd 7.5 42.5 KY USD Odebrecht Finance Ltd 5.125 56.938 6/26/2022 KY USD Odebrecht Finance Ltd 7 68.053 4/21/2020 KY USD Odebrecht Finance Ltd 7.125 41.366 6/26/2042 KY USD Odebrecht Finance Ltd 4.375 40.002 4/25/2025 KY USD Odebrecht Finance Ltd 5.25 39.211 6/27/2029 KY USD Odebrecht Finance Ltd 6 44.75 4/5/2023 KY USD Odebrecht Finance Ltd 5.25 39.018 6/27/2029 KY USD Odebrecht Finance Ltd 7.5 42.95 KY USD Odebrecht Finance Ltd 4.375 40.363 4/25/2025 KY USD Odebrecht Finance Ltd 7.125 41.635 6/26/2042 KY USD Odebrecht Finance Ltd 6 52.625 4/5/2023 KY USD Odebrecht Finance Ltd 5.125 55.873 6/26/2022 KY USD Odebrecht Finance Ltd 7 67.368 4/21/2020 KY USD Petroleos de Venezuela 8.5 74.5 10/27/2020 VE USD Petroleos de Venezuela 6 30.458 5/16/2024 VE USD Petroleos de Venezuela 6 30.517 11/15/2026 VE USD Petroleos de Venezuela 9.75 35.677 5/17/2035 VE USD Petroleos de Venezuela 9 39.279 11/17/2021 VE USD Petroleos de Venezuela 5.375 30.267 4/12/2027 VE USD Petroleos de Venezuela 8.5 72.5 10/27/2020 VE USD Petroleos de Venezuela 12.75 45.278 2/17/2022 VE USD Petroleos de Venezuela 6 30.367 5/16/2024 VE USD Petroleos de Venezuela 6 30.387 11/15/2026 VE USD Petroleos de Venezuela 9 39.316 11/17/2021 VE USD Petroleos de Venezuela 9.75 35.893 5/17/2035 VE USD Petroleos de Venezuela 6 28.346 10/28/2022 VE USD Petroleos de Venezuela 5.5 30.123 4/12/2037 VE USD Petroleos de Venezuela 12.75 45.23 2/17/2022 VE USD Polarcus Ltd 5.6 75 3/30/2022 AE USD Provincia del Chubut 4 10/21/2019 AR USD Siem Offshore Inc 4.04527 69.5 10/30/2020 NO NOK Siem Offshore 3.75176 65.75 12/28/2021 NO NOK STB Finance 2.05771 56.243 KY JPY Sylph Ltd 2.367 64.438 9/25/2036 KY USD US Capital 1.63611 54.774 12/1/2039 KY USD US Capital 1.63611 54.774 12/1/2039 KY USD USJ Acucar 9.875 67 11/9/2019 BR USD USJ Acucar 9.875 67 11/9/2019 BR USD Venezuela 13.625 68.25 8/15/2018 VE USD Venezuela 7.75 44.065 10/13/2019 VE USD Venezuela 11.95 40.785 8/5/2031 VE USD Venezuela 12.75 45.19 8/23/2022 VE USD Venezuela 9.25 39.645 9/15/2027 VE USD Venezuela 11.75 40.005 10/21/2026 VE USD Venezuela 9 36.285 5/7/2023 VE USD Venezuela 9.375 37.69 1/13/2034 VE USD Venezuela 13.625 72.25 8/15/2018 VE USD Venezuela 7 34.23 3/31/2038 VE USD Venezuela 7 59.19 12/1/2018 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, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A. Chapman, Editors. Copyright 2018. 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. . * * * End of Transmission * * *