June 20 (<a href=quote.bloomberg.com>Bloomberg) -- Venezuelan President Hugo Chavez would lose a referendum on his presidency by 38 percentage points if a vote were held today, El Nacional reported, citing a poll by Consultores 21.

The May 17-27 poll of 1,500 Venezuelans found that 66 percent would vote for Chavez to leave office, while 28 percent would cast ballots for him to stay. Eight percent were undecided. No margin of error was given.

A similar poll in April showed that Chavez would lose by 18 percentage points.

Venezuela's opposition plans to seek a binding referendum on Chavez's presidency after Aug. 19 when the former paratrooper passes the halfway point of his term in office. Negotiations over holding the vote continue.

(EN 6/20 A5) (To see El Nacional's Web site, click on {NCNL })

Reuters, 06.20.03, 1:50 PM ET

NEW YORK, June 20 (Reuters) - Emerging sovereign debt stumbled for a fourth straight session on Friday as investors' push to lock in profits after a vibrant rally combined with a flimsy U.S. Treasury market to sink prices.

The benchmark J.P. Morgan Emerging Market Bond Index Plus <11EMJ> shed 1.14 percent, piling on to sharp losses from much of the week. Brazil, a heavyweight in the market with a one-fifth share of the index, slid 2.06 percent as the C bond <BRAZILC=RR> veered 1.0 point lower to 88.75.

Emerging debt took a turn into negative territory this week as U.S. Treasury prices, hit by conflicting messages about an expected U.S. Federal Reserve rate cut, ground lower. U.S. government debt is used as the base for gauging the risk premium of emerging bonds.

Investors have also sought to pare down holdings to take advantage of this year's 22 percent surge. Emerging debt has seen billions of dollars in new cash since the turn of the year, thanks to Wall Street's search for yields above the level of the paltry U.S. rates and optimism for Brazil's reform agenda.

"Overall it's been very quiet," said an emerging debt trader. "Generally it seems there's a fair amount of weakness, particularly Brazil."

"I think it's a little bit of the Treasury and some profit-taking," said the trader. "The sticker price on (emerging market) debt has gotten to levels where many of the old salts are absolutely astonished."

In addition, many investors from Brazil, Latin America's largest country, were seen out of their offices on Friday as they extended Thursday's holiday into a long weekend.

Among the day's biggest losers were Ecuador, whose share of the EMBI-Plus careened 3.62 percent lower. Mexico lost a hefty 1.04 percent, Peru slid 1.02 percent and Venezuela shed 2.18 percent.

"It's trading pretty heavy -- there's lots of supply still. It's profit taking more than anything else and no one's buying yet," said another emerging debt trader.

Ecuador's debt has soared 62.5 percent this year, thanks to the flows to emerging markets and optimism for its International Monetary Fund loan deal. Mexico has gained 11.8 percent, Peru is up 16 percent and Venezuela has added 14.9 percent.

Source, Corporate Rating News  (The following statement was released by the ratings agency)

NEW YORK, June 20 - Moody's upgraded Pride International's liquidity rating to SGL-2 from SGL-3, indicating good combined direct and alternative liquidity. Pride's senior implied rating is Ba1 and its senior unsecured note rating is Ba2. The upgrade to SGL-2 reflects: (1) rising operating cash flow cover of interest expense and capital expenditures, (2) successful refinancing earlier this year of Pride's putable convertible debt, (3) the fact that cash balances, cash flow, and fully-undrawn bank revolver availability indicate internal coverage of scheduled capital spending and debt maturities over the next twelve months, (4) a fully undrawn available $250 million revolver, and (5) good alternative liquidity. Moody's estimates that Pride's 2003 EBITDA will be in the range of $450 million to $470 million range and free cash flow after interest expense, working capital changes, and capital spending will be in the range of $110 million to $130 million. After issuing $300 million of unrated convertible senior notes this year and repaying $211 million of putable notes and $165 million of bank revolver debt, Moody's estimates cash balances to now be roughly $135 million. By year-end 2003, cash balances may materially exceed $200 million. The SGL-2 rating is restrained by, and sensitive to, bank loan covenant coverage that may continue to be tight at June 30, 2003, December 31, 2003, and again in 2004. Pride's expected pace of earnings and cash flow growth is nearly matched by covenant tightening during that period, though the tightening covenants do further reinforce Pride management's and board of directors' clear intention to significantly reduce leverage. The SGL-2 rating cannot rise if Pride continues to operate relatively close to its bank loan covenants. An upgrade of the SGL rating over the next twelve months would likely require a substantial debt reduction with proceeds of either newly issued equity or conversion of existing convertible instruments. In the meantime, retaining the SGL-2 rating depends on Pride meeting its bank loan covenants while firming of the rating would occur when Pride also refinances or extends the maturity of an early 2004 $86 million seller note maturity and a $75 million 2004 European credit line maturity. The SGL-2 rating is supported by significant alternative liquidity. While the $250 million bank revolver and $200 million bank term loan are secured by twenty-eight GOM jack-up drilling rigs and by two semisubmersible rigs, the unencumbered base is relatively large. This includes receivables of over $300 million at mid-year 2003, roughly $400 million of mostly offshore unencumbered jack-up and platform rigs, and Pride's large valuable South American land rig business. Unencumbered rigs can be monetized, but proceeds must first retire Pride's loan facilities, whereas qualified receivables could be monetized without retiring bank debt. Trailing four quarters net income and defined EBITDA are expected to continue rising as previous trough quarters are replaced by stronger quarter results but Pride's Debt/Capital, Defined EBITDA/Interest, and Defined Debt/Defined EBITDA convenant tests will retighten through to March 31, 2004. The Debt/EBITDA test (trailing four quarters) declined from 4.95x at September 30 and December 31, 2002 to 4.75x on March 31, 2003, 4.50x on June 30 and September 30, 2003, 4.0x at year-end 2003, and 3.50x on March 31, 2004. Net Debt/Total Capital steps down from 55% through to September 30, 2003, to a possibly tight 50% by year-end 2003, and 45% by March 31, 2004. The EBITDA/Interest test stepped up from 3.0x in 2002 to 3.25x through 2003, and 4.00 by March 31, 2004. Pride easily meets its Net Worth Test. Moody's anticipates ongoing net debt reduction due to constrained capital spending, rising cash flow from new term drilling contracts and firming in rig activity in the Gulf of Mexico, assuming Pride's other markets do not decline materially. After political and fiscal turmoil in Argentina and Venezuela, Pride reports that its Argentine land rig business is operating at high utilization and that its Venezuelan land rig and barge rig business is firming too. One hundred percent of Pride's international jack-up, semisubmersible, and drillship fleet are under contract. However, Pride's U.S. GOM mat-supported jack-up fleet is at 46% utilization (six of thirteen rigs utilized) and Pride's mat-supported Gulf of Mexico jack-up rigs face stiff marketing competition from a key competitor. Along with other competitors, Pride is deploying rigs out of the U.S Gulf of Mexico market and into the Mexican Gulf of Mexico market. Moody's expects debt and leases at year-end 2003 of roughly $1.8 billion, down $40 million from March 31, 2003, and excluding $225 million in non-recourse debt in the now 30% owned Amethyst 4 and 5 joint venture. In the 1997 through 200x period, Pride incurred very substantial leverage to fund acquisition and construction of an offshore drilling rig fleet, including a deepwater semi-submersible drilling rig and drillship fleet now generating strong core contracted cash flow. Core cash flow should rise as term contracts generate a full quarter's activity for the deepwater fleet and as the rising number of term contracts with PEMEX for commodity jack-up rigs impact cash flow. Fairly recent term contracts include the Pride South Pacific semisubmersible, twelve contracts with Pemex for mat-supported jack-up rigs (bringing to sixteen its total rigs on contract with Pemex), and two jack-ups signed for other offshore markets. Eleven of the fourteen rigs placed into contracts here came off of inactive status. For 2003, Moody's projects $450 million to $470 million of EBITDA, with roughly $100 million of increased working capital investment absorbing that amount of cash flow. EBITDA peaked at $511 million in 2001 during up-cycle conditions and on the placement of Pride's new high-end drilling assets into drilling contracts. EBITDA bottomed at $369 million in 2002, beating Moody's projection of $362 million, on down-cycle conditions in the Gulf of Mexico and disruption in its Argentine and Venezuelan markets. Working capital increases absorbed approximately $114 million of cash flow in 2001 and reductions in working capital investment freed-up approximately $79 million of cash in 2002. Pride International, Inc. is headquartered in Houston, Texas.

<a href=www.zwire.com>Litchfield County Times, By: E.L. Lefferts
06/20/2003

Rather than take a vote at that point, however, commissioners decided to hold off until after putting their thoughts down on paper. "We didn't vote," confirmed commission chairman Dorothy Hill. "We'll have further discussion at the next meeting [June 25], and we may vote then. It was agreed, to clarify concerns or opinions, that we would write them down to help in drafting the motion." Ms. Hill was very concerned that no one gets the impression the commission has already come to a conclusion. There was discussion, but no consensus last week, she said, as the commission wrapped up its meeting with the clock ticking toward midnight. The proposed project entails building two homes of between 4,000 and 8,000 square feet each, two swimming pools, two tennis courts and two ponds on property off of Carmel Hill Road. Ms. Maury, the wife of Diego Arria-the Assistant Secretary-General of the United Nations under UN Secretary-General Kofi Annan, and a former governor of Caracas, Venezuela-is reviewing her options as to whether she'll keep the property for personal use or build the houses to be sold. While two homes and their respective amenities on 73 acres is not what most would consider heavy development, Michael Klemens, a herpetologist and consultant for the commission whose fee was paid by the applicant, noted that the property plays host to some fragile vernal pools. He has also noted that the ponds could compromise Sprain Brook with an inflow of nutrients, or they could affect the stream's temperature, subsequently harming the habitat for salamanders, fish, frogs and mosquitoes. "From my point of view, there are some wetlands we don't need to spend a lot of time protecting," Mike Ajello, Washington's wetlands enforcement officer has said. "And there are pristine wetlands that have never been impacted or touched ... and much of the Maury/Cady site are of the latter description." Landscape architect Dirk Sabin has assured the commission that part of the plan is to make 68 percent of the property, which would include the acres containing the vernal pools and central wetlands, subject to a conservation easement held by either the Steep Rock Association or the town. Despite this assurance, at the June 11 meeting about 17 people were in the audience, prompting a commission member to comment that it was the largest crowd the application had yet attracted. "We use the stream for our geology and water ecology classes," said Glen Sherratt, of the Horace Mann School, which he noted is downstream from the Maury/Cady property. "A change in temperature may affect flora and fauna. There's also a hemlock grove that depends on the moisture from the stream. Diminished water flow could be harmful." Elizabeth Corrigan presented a laundry list of questions and complaints about the application. "I ask the commission to deny this application without prejudice," she said. "The project will permanently alter the natural characteristics of this rare wetland ecosystem, including its co-dependent upland review area. There are many uncertainties and unenforceable aspects to this plan. It is simply too big for the landscape." The sole voice that night in favor of the application came from Susan Payne, chairman of the Conservation Commission. "The consensus is that this is quite an outstanding development for a large piece of property," she said. In the past, complaints have been made that the plan, with all its amenities and landscaping, smacks of the kind of self-indulgence found in SUVs, and that it represents a typical weekender approach to the land. To Mr. Sabin's mind, such criticism merely distracts from the facts. "I think some of the opposition has made some characterizations that are unproductive to the process," he said. "I think it's uncalled for and irrelevant, particularly since the majority [of the land would be] in a conservation easement. It's just an attempt to slur the project and detract from the real facts of the case." Mr. Sabin noted that according to zoning regulations, Ms. Maury and Mr. Cady could conceivably build six houses on the property, which would fragment the site even if the plan could conserve 70 percent of the land, as the current proposal endeavors to do. "We are proposing some regulated activities, but the great bulk of the site would be left in its natural condition, including the vernal pool corridor," Mr. Sabin noted. "There are only two houses proposed, and between houses, drives, and terraces, there's approximately 2 percent impervious surfaces. The plans have been specifically designed to create a variety of natural habitats, which would be comprised of woodland, meadows and naturalistic ponds." "There are significant conservation elements in this plan that are in direct response to the natural character of the site," he added. Ms. Hill noted that the commission would weigh the pros and cons of the driveway, which would have an impact on wetlands, along with considering the impact of the ponds and one house that is proposed to be within 750 feet of the vernal pool area. "It's the wetlands issues that concern us," she said. "So no matter what the application, that's what determines our interest." While the motion to approve or deny is likely to be drafted at the commission's next meeting, it is under no obligation to make a decision until 35 days after the public hearing has closed, or by July 16.

Fri June 20, 2003 01:19 PM ET By Randall Mikkelsen

WASHINGTON, June 20 (<a href=reuters.com>Reuters) - U.S. President George W. Bush and Brazilian President Luiz Inacio Lula da Silva were expected to focus in meetings Friday on trade, regional hot spots and Lula's ambitions to help the poor.

One surprise has been warming relations between the Brazilian president, a former labor leader, and Bush, a conservative former businessman. Brazil has recently clashed with the United States over trade and the war in Iraq.

But the two countries were expected to announce joint initiatives including U.S. support for Lula's anti-hunger program in Brazil, cooperation on energy and poverty relief measures for Africa.

"Today the people of both our countries will see a series of initiatives on a variety of fronts, which indicate that this relationship is a mature relationship and an important relationship," Bush said as he welcomed Lula.

The two leaders took no questions in what was their third meeting.

"This is a novelty, it's not just a summit meeting with two presidents but it's a meeting that has Cabinet members of both governments. So that from this meeting onwards, our ministers can continue to work together independently of the two presidents," Lula said.

"Without any question, I believe that we can surprise the world in terms of the relationship between Brazil and the United States," he said.

Lula brought 10 ministers with him. For the United States, Agriculture Secretary Ann Veneman, Special Trade Representative Robert Zoellick, and Energy Secretary Spencer Abraham were expected to take part in the expanded meeting, a U.S. official said.

Brazil and the United States have clashed over trade in the past, particularly subsidies and tariff barriers slapped on key Brazilian exports like orange juice, textiles and steel.

Lula strongly opposed the Iraq invasion. In their public remarks, Iraq was not mentioned.

Brazil and the United States also co-chair the Free Trade Area of the Americas talks to create a hemisphere-wide free trade zone by January 2005. The FTAA is central to Bush's policy of promoting trade and democracy in Latin America.

Most of the region suffered a recession in 2002, with Venezuela and Argentina hard hit by sharp recessions and bouts of political upheaval.