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                     L A T I N   A M E R I C A

            Friday, January 29, 2016, Vol. 17, No. 20


                            Headlines



A N T I G U A  &  B A R B U D A

ANTIGUA & BARBUDA: In Asset Swap to Settle Debt to Benefits Scheme


A R G E N T I N A

FIDEICOMISO FINANCIERO XIV: Moody's Withdraws C Rating on Certs
FIDEICOMISO FINANCIERO XIII: Moody's Withdraws C Ratings on Certs


B A R B A D O S

MONTICELLO INSURANCE: Moody's Puts Ba1 IFS Rating Under Review


B R A Z I L

BROOKFIELD INCORPORACOES: Moody's Cuts Corp Family Rating to 'B3'
USIMINAS COMMERCIAL: Moody's Cuts Sr. Unsec. Notes Rating to Caa1
USINAS SIDERURGICAS: Moody's Cuts Corporate Family Ratings to Caa1


C A Y M A N  I S L A N D S

AMERICAN GENERAL: Shareholders Receive Wind-Up Report
ASCEND TRADING: Shareholders Receive Wind-Up Report
CREP INVESTMENT I: Shareholder Receives Wind-Up Report
CREP INVESTMENT K: Shareholder Receives Wind-Up Report
CRYSTAL CLO: Shareholders Receive Wind-Up Report

GS STRUCTURED: Shareholders Receive Wind-Up Report
GSAM CREDIT: Shareholders Receive Wind-Up Report
NOUVELAIR TUNISIE: Shareholders Receive Wind-Up Report
SIGNUM BLUE: Shareholders Receive Wind-Up Report
SIGNUM BLUE II: Shareholders Receive Wind-Up Report

SIGNUM MENA: Shareholders Receive Wind-Up Report
SIGNUM MIG I: Shareholders Receive Wind-Up Report
SIGNUM PLATINUM II: Shareholders Receive Wind-Up Report
VENTURE II: Shareholders Receive Wind-Up Report
ZAIS ZEPHYR A-2: Shareholders Receive Wind-Up Report


D O M I N I C A N   R E P U B L I C

DOMINICAN REP: Opposition Pull Out Major Blow to Electricity Pact

* DOMINICAN REP: Exports to Climb From US$9.6BB to US$10B This Yr.
* DOMINICAN REPUBLIC: Employers List Hurdles to Wage Hike


M E X I C O

DOCUFORMAS SAPI: S&P Affirms 'B+' Rating; Outlook Stable
MEXICO: Unemployment Rate Climbs to 4.4 pct. in December


P A R A G U A Y

PARAGUAY: Fitch Affirms 'BB' IDR; Outlook Stable


P U E R T O    R I C O

DF SERVICING: Meeting of Creditors Set for Feb. 1
PUERTO RICO: Senate Dems Pressure GOP on Bankruptcy Option
PUERTO RICO ELECTRIC: Debt Restructuring Pact Extended to Feb. 16


                            - - - - -


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A N T I G U A  &  B A R B U D A
===============================


ANTIGUA & BARBUDA: In Asset Swap to Settle Debt to Benefits Scheme
------------------------------------------------------------------
Caribbean360.com reports that Prime Minister Gaston Browne has
announced that government has reached an agreement with the
Medical Benefits Scheme (MBS) to clear its debt to the
institution.

Governments has amassed EC$250 million (US$92.5 million) in debt
to MBS over the years, according to Caribbean360.com.

"Even though Central Government has the right to pursue a set-off
of these debts, we have agreed with the Board of MBS to a debt for
asset swap to include Mount St. John Medical Centre and the
government's shares in the Cancer Centre.  This will eliminate the
debt in its entirety," Minister Browne said during the Budget
presentation, the report notes.

The Prime Minister said his government is committed to paying
contributions to both MBS and Social Security, and to ensuring
that the people of Antigua and Barbuda are provided world-class
living standards, the report discloses.

"We have already demonstrated this commitment with investments in
medical equipment and supplies to the Mount St. John Medical
Centre, with the successful eye care program, and with
scholarships to train doctors and nurses," Minister Browne said,
the report relates.  "My government has not corruptly gambled MBS
monies in failed investment schemes," Minister Browne added.

MBS was established as a special fund to provide financial and
other assistance towards the healthcare cost of the nation, the
report notes.

Minister Browne said the Scheme is therefore "legally responsible
for funding healthcare for all citizens and residents, with
supplemental support from Central Government," the report notes.

"It was not intended to be an investment Fund to carry hundreds of
millions in Government securities on its books.  The Medical
Benefits' obligation, to fund healthcare has not been fully met,
leaving Central Government to cover these costs, which far exceed
the amounts payable to MBS," he added, the report relays.

The Prime Minister also announced that his government has agreed
to establish a monthly standing order to cover contributions to
MBS.  A payment of EC$2.7 million (US$1 million) has been remitted
to commence payments for 2016, a government statement said, the
report adds.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on
September 23, 2014, The Daily Observer said that Antigua & Barbuda
could soon find itself in the company of Japan, Zimbabwe, and
Greece, the countries with the highest national debts.

In the January 2014 budget presentation, the former administration
indicated that the nation's debt was 87 per cent of GDP, according
to The Daily Observer.  However, Prime Minister Gaston Browne has
disputed the figure, deeming it to be as high as 130 per cent, the
report noted.

Minister Browne said while his government's increased borrowing is
pushing up the nation's debt-to-GDP ratio, it is necessary to
solve the country's problems, the report related.


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A R G E N T I N A
=================


FIDEICOMISO FINANCIERO XIV: Moody's Withdraws C Rating on Certs
---------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo (Moody's)
has withdrawn the C (sf) / C.ar (sf) of the VRDB and the C (sf) /
C.ar (sf) ratings of the certificates of Fideicomiso Financiero
Pvcred Serie XIV due to business reasons.

RATINGS RATIONALE

Moody's has withdrawn the rating for its own business reasons.


FIDEICOMISO FINANCIERO XIII: Moody's Withdraws C Ratings on Certs
-----------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo (Moody's)
has withdrawn the Ca (sf) / Ca.ar (sf) of the VRDB and the C (sf)
/ C.ar (sf) ratings of the certificates of Fideicomiso Financiero
Pvcred Serie XIII due to business reasons.

RATINGS RATIONALE

Moody's has withdrawn the rating for its own business reasons.


===============
B A R B A D O S
===============


MONTICELLO INSURANCE: Moody's Puts Ba1 IFS Rating Under Review
--------------------------------------------------------------
Moody's Investors Service (MIS) has placed under review for
downgrade the Ba1 insurance financial strength (IFS) rating of
Monticello Insurance Limited (Monticello, or MIL). Monticello is
the captive reinsurance subsidiary of Brazil-based Vale S.A.
(senior unsecured debt at Baa3, under review for downgrade), one
of the largest metal and mining companies in the world. This
rating action follows Moody's review for downgrade of Vale's
ratings (see press release titled "Moody's places Vale's ratings
on review for downgrade" published on 22 January 2016).

RATINGS RATIONALE

Moody's said the review for downgrade of MIL's Ba1 rating reflects
Monticello's close integration and linkages with the global risk
management function of the group, implying that a downgrade of
Vale's rating will likely result in a downgrade of the captive's
rating.

The rating agency added that MIL is a core part of Vale's risk-
management program and is the sole insurance captive utilized in
Vale's property insurance and business interruption program
worldwide. Explicit support from Vale to MIL, which has been
provided through capital injections -- totaling  $US 240 million
over the past three years --and ongoing financial support to cover
losses is a key driver of MIL's credit rating, absent which, MIL's
rating would be lower. The rating agency expects that MIL will
continue to receive extensive parental support from Vale,
including the parent company's willingness to backstop MIL's
obligations to its fronting insurance carriers, and to provide
additional capital to MIL in the event that it has insufficient
funds to meet its obligations under the reinsurance assumed.

MIL's rating is constrained by its product risk concentration and
significant risk exposures, which has resulted in earnings
volatility -reflected by net losses in 2012-, as well as the weak
sovereign credit profile and operating environment of Barbados,
where MIL is domiciled.

Given the review for downgrade of MIL's rating, an upgrade is
unlikely, but a confirmation of Vale's rating could lead to a
confirmation of MIL's rating. Conversely, MIL's rating could be
downgraded if: 1) Vale's rating is downgraded; 2) support from the
group to the captive company is reduced; 3) the captive reinsurer
starts to cover risks of external (i.e. non-Vale) entities or
engages in non-reinsurance business; or 4) Barbados' sovereign
rating (currently B3, negative outlook) is downgraded. Moody's
notes that MIL's ratings are above the Ba3 sovereign ceiling for
Barbados, primarily reflecting the fact that Monticello's premiums
comes from countries outside Barbados, as well as the ownership
and strong support of the parent company and its operations
outside of Barbados.

Monticello Insurance Limited is based in Barbados. As of December
31, 2014, its total assets amounted to $US 501 million and its
shareholders' equity was $US 158 million. The company's total
annual gross premium for 2014 totaled $US 44 million, and the
company recorded a net income of $US 64.5 million in 2014.


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B R A Z I L
===========


BROOKFIELD INCORPORACOES: Moody's Cuts Corp Family Rating to 'B3'
-----------------------------------------------------------------
Moody's America Latina (Moody's) has taken several rating actions
on four Brazilian homebuilders and their respective debt issuances
in the local domestic market, following a change in Moody's
forward looking assumptions for revenue growth and operating
performance due to the prolonged macroeconomic downturn in the
country and continued weak industry outlook for this sector
through at least 2017.

The negative rating actions reflect Moody's perception of a
general increase in credit risk for Brazilian builders with the
slowdown in construction activity and a prolonged deterioration in
the real estate market. "We note signs of industry contraction
since 2012, but the challenges for builders have been aggravated
by a tighter funding availability and deterioration in real estate
prices", says Cristiane Spercel, a Moody's VP-Senior Analyst.
"Despite the still high pent-up demand for new housing in the
Brazil, industry stress will likely grow during 2016 along with
further deterioration in the job market and weaker consumer
confidence", added Spercel.

Higher inventories of completed and unsold new homes are
constraining prices and revenue growth, effectively delaying the
industry's recovery. These events portend changes in the company's
liquidity and capital structures that could result in higher
expected losses for the existing secured and unsecured creditors.
" The ability to withstand a prolonged period of industry
contraction varies among the companies we rate, but those with a
stronger liquidity and lower leverage ratios should have a better
chance to overcome it", added Spercel.

Covered in this press release are the following issuers, with
their respective rating changes:

Issuer: Brookfield Incorporacoes S.A. (Brookfield)

-- Corporate Family Rating: downgraded to B3 from B1 (global
    scale) and to Ba2.br from Baa2.br (national scale) ;

-- BRL150 million (BRL76 million outstanding)senior unsecured
    debentures due in 2016 (3rd issue): downgraded to B3/Ba2.br
    from B1/Baa2.br;

-- BRL223.2 million (BRL114 million outstanding) senior unsecured
    debentures due in 2016 (4th issue): downgraded to B3/Ba2.br
    from B1/Baa2.br;

The outlook for all Brookfield's ratings remain negative.

Issuer: Cyrela Brazil Realty S.A. Empreend E Part (Cyrela)

-- Corporate Family Rating: affirmed at Ba2 (global scale) and
    Aa2.br (national scale);

-- BRL400 million (BRL203 million outstanding) senior unsecured
    debentures due in 2017 (6th issue): affirmed at Ba2/Aa2.br;

-- BRL300 million (BRL300 million outstanding) senior secured
    Bank Credit Facility due in 2017: affirmed at Ba2/Aa2.br;

The outlook for all Cyrela's ratings was changed to negative from
stable.

Issuer: Even Construtora e Incorporadora S/A (Even)

-- Corporate Family Rating: downgraded to B1 from Ba3 (global
    scale) and to Baa1.br from A2.br (national scale)

-- BRL250 million (BRL42 million outstanding) senior unsecured
    debentures due in 2016 (4th issue): downgraded to B1/Baa1.br
    from Ba3/A2.br;

-- BRL150 million (BRL150 million outstanding) senior unsecured
    debentures due in 2017 (5th issue): downgraded to B1/Baa1.br
    from Ba3/A2.br;

The outlook for all Even's was changed to negative from stable.

Issuer: Gafisa S/A (Gafisa)

-- Corporate Family Rating: global scale rating downgrade to B2
    from B1 and national scale rating affirmed at Baa3.br;

-- BRL475 million (BRL492 million outstanding) secured debentures
    due in 2017 (7th Issuance): downgraded to B2/Baa3.br from
    Ba3/A3.br;

-- BRL11.6 million (BRL17.3 million outstanding) senior unsecured
    debentures with final maturity in 2016 (8th Issuance-2nd
    series): global scale downgraded to B3 from B2 and national
    scale rating affirmed at Ba2.br;

-- BRL55 million (BRL62 million outstanding) secured debentures
    due in 2024 (10th Issuance): downgraded to B2/Baa3.br from
    Ba3/A3.br;

The outlook for all Gafisa's ratings remains negative.

Please see ratings tab on the issuer/entity page on moodys.com.br
for information on Global Scale Rating.

RATINGS RATIONALE

Brookfield's B3/Ba2.br ratings continue to reflect the strong
financial support of its controlling shareholder -- Brookfield
Asset Management (BAM, Baa2 stable) that provided for
approximately BRL2.3 billion in cash injections from 2014 through
September 2015, of which was BRL1.2 billion in the form of equity
capitalization and BRL 1.1 billion in the form of "interest free"
intercompany loans, demonstrating a long-term commitment to the
homebuilding industry in Brazil. This support has been paramount
for the company to remain solvent. After buying out minority
shareholders in 2014, BAM has also increased its operating and
controlling oversight in Brookfield. Nevertheless, the company's
credit metrics remain weakly positioned for its rating category,
as indicated by a negative gross margin of 13% in the last twelve
months ended September 2015, with no visible material improvement
in profitability in the short term, which prompted the two notches
global scale rating downgrade. The negative outlook also reflects
the company's evolving business profile and ongoing challenges to
consistently improve its operations and reduce leverage amid the
weakening industry fundamentals in the Brazilian homebuilding
market.

Moody's affirmed Cyrela's Ba2/Aa2.br ratings, which remain
supported by its significant position in the Brazilian
homebuilding market with a strong brand name, good diversity in
terms of product offering and experienced management team.
Additional credit enhancements include: (i) the company's strong
liquidity position, as indicated by an unrestricted cash
availability to cover short term debt of approximately 1.7 times (
as of 3Q15); (ii) stable gross margins in the 33% to 35% range and
(iii) relatively low leverage as measured by the gross debt to
total capitalization ratio, which has recently decreased below
40%. On the other hand, the challenging industry outlook for
homebuilders in Brazil will likely translate into more soft
revenue growth rates, reduced business opportunities and limit
further improvement in Cyrela's credit metrics through at least
mid-2017. This has triggered the change in outlook to negative.
Another credit concern has been Cyrela's strategy to directly
finance homebuyers for a part or the entirety of the remaining
balance on their loan, which exposes the company to client
delinquency risk.

Even's B1/Baa1.br ratings reflect its strong brand name and strong
market share in the city of Sao Paulo, with a solid track record
in the construction of apartments for the middle income families.
The ratings also consider Even's relative conservative financial
policies that result in strong cost control mechanisms and
manageable debt profile. Despite some uncertainty over its
business plan after the recent change in ownership structure, the
credit strengths outlined above should remain unchanged. On the
other hand, the company's reduced scale and diversification
constrains the rating, particularly under deteriorating industry
fundamentals. The negative outlook reflects the challenges ahead
of Even's management to maintain a consistent business growth rate
and improve its credit metrics through at least mid-2017.

Gafisa's B2/Baa3.br corporate family ratings incorporate its
strong market share position and brand name in Brazil, along with
its long track record of operations. On the other hand the rating
is constrained by Gafisa's reduced scale, still weak interest
coverage ratio and evolving business strategy. Despite its
improving operating performance and credit metrics over the last
twelve months, Gafisa is still highly leveraged and suffers from
tight liquidity, which triggered the downgrade of the corporate
family by one notch on the global scale to B2 from B1. The
challenging environment for Brazilian homebuilders adds to the
negative pressure, because the weak macroeconomic trend limits the
potential for new launches, reduction of inventory levels and
further improvement in profitability over the next couple of
years.

Gafisa's senior secured debt issues at B2/Baa3.br are now in line
with its corporate family rating reflecting the company's current
debt profile, which is predominantly composed of secured debt
issuances. As such, the security of those bonds no longer justify
a one notch uplift from its corporate family rating. Secured debt
now represents over 80% of Gafisa's consolidated debt profile,
since the company has been prioritizing more flexible secured
construction loans in its capital structure. Moody's continues to
view Gafisa's unsecured debt as effectively subordinated to the
company's secured and guaranteed debt. For this reason, Moody's
also downgraded Gafisa's senior unsecured debentures to B3/Ba2.br,
one notch below the corporate family rating on global scale.

RATING TRIGGERS

Brookfield. An upgrade of Brookfield's ratings is unlikely in the
near term, but Moody's will consider an outlook stabilization
should the company successfully execute its deleveraging and asset
monetization strategy over the next few quarters, while sustaining
revenues close or above BRL2.0 billion per year. Quantitatively,
an outlook stabilization will be considered should the company's
profitability ratios move to a more solid positive territory
(gross margin = -13% LTM3Q15) while its adjusted gross debt to
total capitalization ratio stays below 60% (58.2% 3Q15).
Brookfields' ratings could be downgraded if the company proves
unable to improve its liquidity position to address its corporate
debt maturing in 2016. A change in Brazil's sovereign rating
(Baa3, under review for downgrade) or a change in methodology that
triggers changes in the current mapping for national scale ratings
could also trigger a rating action or recalibration to reposition
Brookfield's national scale ratings.

Cyrela. A rating upgrade is unlikely in the short term, but
ratings outlook could stabilize if Cyrela experiences positive
revenue growth along with stable or improving credit metrics and
sustain its strong liquidity position. A rating upgrade would
require total debt to capitalization ratio to remain consistently
below 40% (38.2% 3Q15) and EBIT interest coverage to increase
above 4.5 times (2.6x LTM 3Q15). Alternatively, a downgrade could
be triggered by a material deterioration in Cyrela's cash
availability to cover short term debt (1.66x 3Q15), or if total
debt to capitalization moves above 50% for an extended period of
time. A meaningful increase in the proportion of secured debt or a
decrease in the amount of unencumbered assets that could be used
to pay down the unsecured debentures could also result in a
downgrade of Cyrela's unsecured ratings. A change in Brazil's
sovereign rating (Baa3, under review for downgrade) or a change in
methodology that triggers changes in the current mapping for
national scale ratings could also trigger a rating action or
recalibration to reposition Cyrela's national scale ratings.

Even. A rating upgrade is unlikely in the short term, but the
ratings outlook could stabilize if Even is able to increase in
size in terms of revenues and EBIT, diversify its business profile
and at the same time maintain or improve leverage metrics. For
example, an upgrade could be considered if the company
consistently maintains its total debt to capitalization below 40%
(44.7% 3Q15), and EBIT interest coverage above 3.5 times (1.9x LTM
3Q15). An upgrade would also require improvement in its liquidity
position, as per an unrestricted cash to short term debt position
that is above 1.0x (0.76x 3Q15) on a sustainable basis. On the
other hand, Even's ratings could be further downgraded if the
company faces significant deterioration in its liquidity profile
due to a larger than anticipated distribution to shareholders or a
prolonged downturn in the homebuilding industry that leads to a
debt to capitalization ratio above 50% and EBIT interest coverage
below 1.0x. A change in Brazil's sovereign rating (Baa3, under
review for downgrade) or a change in methodology that triggers
changes in the current mapping for national scale ratings could
also trigger a rating action or recalibration to reposition Even's
national scale ratings.

Gafisa: A rating upgrade is unlikely in the short term, but the
ratings outlook could stabilize if Gafisa is able to further
improve its credit metrics, such as the gross debt to total
capitalization ratio remains consistently below 50% (48.7% 3Q15),
along with higher visibility on the company's capital structure
and the potential separation of Tenda. Ratings could be further
downgraded if there is no improvement in Gafisa's liquidity
profile over the next few quarters, as indicated per an
unrestricted cash-to-short term debt above 1.0x (0.67x 3Q15).
Quantitatively, the ratings could be also downgraded if gross debt
to total capitalization increases above 60% or EBIT interest
coverage remains below 1.0x (0.9x LTM 3Q15) for a prolonged
period. A decrease in the amount of unencumbered assets that could
be used to pay down the unsecured debentures under a distress
situation, could also result in a downgrade of Gafisa's unsecured
ratings. A change in Brazil's sovereign rating (Baa3, under review
for downgrade) or a change in methodology that triggers changes in
the current mapping for national scale ratings could also trigger
a rating action or recalibration to reposition Gafisa's national
scale ratings.


USIMINAS COMMERCIAL: Moody's Cuts Sr. Unsec. Notes Rating to Caa1
-----------------------------------------------------------------
Moody's Investors Service downgraded the ratings of the senior
unsecured notes issued by Usiminas Commercial Ltd. (guaranteed by
Usinas Siderurgicas de Minas Gerais, "Usiminas") to Caa1 from B2
and the ratings of the backed senior unsecured global MTN programs
of Usinas Siderurgicas de Minas Gerais S.A., Cosipa Commercial Ltd
and Usiminas Commercial Ltd to (P) Caa1 from (P) B2. The ratings
remain on review for downgrade.

At the same time, Moody's America Latina downgraded Usiminas's
global scale rating to Caa1 from B2 and the national scale rating
(NSR) to Caa1.br from Ba2.br. The ratings remain on review for
downgrade.

Ratings downgraded:

Issuer: Usinas Siderurgicas de Minas Gerais S.A.

-- $US 500 million backed senior unsecured Global MTN Program: to
    (P) Caa1 from (P) B2

Issuer: Cosipa Commercial Ltd.

-- $US  500 million backed senior unsecured Global MTN Program:
    to (P) Caa1 from (P) B2

Issuer: Usiminas Commercial Ltd.

-- $US 400 million o due 2018, guaranteed by
    Usiminas: to Caa1 from B2

-- $US 500 million backed Global MTN Program: to (P) Caa1 from
    (P) B2

The ratings are on review for downgrade.

RATINGS RATIONALE

The downgrade to Caa1 reflects primarily the continued
deterioration of the market fundamentals for steelmakers in Brazil
and Usiminas' diminishing ability to generate cash flow from its
operations, which increases liquidity pressures. At the current
level of operations and free cash flow generation, it will become
increasingly difficult for Usiminas to meet its financial
obligations. Usiminas posted negative gross margin in the third
quarter of 2015 and announced capacity shutdowns to reduce fixed
costs and improve profitability in a lower demand environment.
This strategy is currently being implemented and at this point it
is uncertain if it will suffice to overcome the contraction of the
domestic demand for steel in Brazil and improve the company's free
cash flow generation.

Usiminas' operations should remain pressured at least until the
end of 2016, as a result of timid economic activity and struggling
industrial performance in Brazil, as well as much weaker
fundamentals for the domestic steel industry. Furthermore, global
oversupply of steel will constrain exports' profitability. This,
combined with the impact of the devaluation of the Brazilian real
on the company's foreign currency debt (about 48% of total debt)
and on its costs, will result in persistently weak credit metrics
throughout 2016, particularly margins, leverage and interest
coverage

Although Usiminas breached financial covenants applicable to 88%
of its total debt at the end of December 2015, the company was
able to negotiate waivers, which reduces the risk of debt
acceleration in the short term. Historically, Usiminas has been
able to maintain an adequate liquidity profile, as evidenced by an
adequate cash position (BRL 2.4 billion cash balance at the end of
3Q 2015, sufficient to cover short term debt by 1.3x), but cash
balance relative to short term maturities has declined overtime
due to weaker cash flow generation, and a substantial part of the
company's cash balance is restricted as it is at the subsidiaries
and may not be immediately available to meet the company's
financial obligations. With the challenging outlook for the steel
industry and our expectations that free cash flow generation will
remain weak, Usiminas could face liquidity pressures to meet its
short term debt.

The ratings remain on review for downgrade reflecting our ongoing
concern over Usiminas' ability to meet its short term financial
obligations.

Additional negative rating actions can be considered if Usiminas
fails to meet short term financial obligations, breaches covenants
or enters into a debt restructuring that results in losses to
creditors.

Headquartered in Belo Horizonte, Minas Gerais, Usinas Siderurgicas
de Minas Gerais S.A. - Usiminas (Usiminas) is the largest
integrated flat-steel manufacturer in Latin America, with
production of 5.3 million tons of crude steel and consolidated net
revenues of BRL 10.4 billion (approximately $US  3.5 billion
converted by the average exchange rate) for the LTM period ending
September 30, 2015. Usiminas also owns iron ore mining properties,
steel distribution and capital goods subsidiaries in Brazil.


USINAS SIDERURGICAS: Moody's Cuts Corporate Family Ratings to Caa1
------------------------------------------------------------------
Moody's America Latina downgraded Usinas Siderurgicas de Minas
Gerais S.A. ("Usiminas") corporate family ratings to Caa1 from B2
(global scale) and to Caa1.br from Ba2.br (national scale). The
ratings remain on review for downgrade.

Ratings downgraded:

Issuer: Usinas Siderurgicas de Minas Gerais S.A.

-- Corporate Family Rating: Caa1 (from B2) in the global scale
    and Caa1.br (from Ba2.br) in the national scale

The ratings are on review for downgrade.

For further information on related ratings and Global Scale
Rating, please see the ratings tab on the issuer/entity page for
the respective issuer on www.moodys.com

RATINGS RATIONALE

The downgrade to Caa1 reflects primarily the continued
deterioration of the market fundamentals for steelmakers in Brazil
and Usiminas' diminishing ability to generate cash flow from its
operations, which increases liquidity pressures. At the current
level of operations and free cash flow generation, it will become
increasingly difficult for Usiminas to meet its financial
obligations. Usiminas posted negative gross margin in the third
quarter of 2015 and announced capacity shutdowns to reduce fixed
costs and improve profitability in a lower demand environment.
This strategy is currently being implemented and at this point it
is uncertain if it will suffice to overcome the contraction of the
domestic demand for steel in Brazil and improve the company's free
cash flow generation.

Usiminas' operations should remain pressured at least until the
end of 2016, as a result of timid economic activity and struggling
industrial performance in Brazil, as well as much weaker
fundamentals for the domestic steel industry. Furthermore, global
oversupply of steel will constrain exports' profitability. This,
combined with the impact of the devaluation of the Brazilian real
on the company's foreign currency debt (about 48% of total debt)
and on its costs, will result in persistently weak credit metrics
throughout 2016, particularly margins, leverage and interest
coverage.

Although Usiminas breached financial covenants applicable to 88%
of its total debt at the end of December 2015, the company was
able to negotiate waivers, which reduces the risk of debt
acceleration in the short term. Historically, Usiminas has been
able to maintain an adequate liquidity profile, as evidenced by an
adequate cash position (BRL 2.4 billion cash balance at the end of
3Q 2015, sufficient to cover short term debt by 1.3x), but cash
balance relative to short term maturities has declined overtime
due to weaker cash flow generation, and a substantial part of the
company's cash balance is restricted as it is at the subsidiaries
and may not be immediately available to meet the company's
financial obligations. With the challenging outlook for the steel
industry and our expectations that free cash flow generation will
remain weak, Usiminas could face liquidity pressures to meet its
short term debt.

The ratings remain on review for downgrade reflecting our ongoing
concern over Usiminas' ability to meet its short term financial
obligations.

Additional negative rating actions can be considered if Usiminas
fails to meet short term financial obligations, breaches covenants
or enters into a debt restructuring that results in losses to
creditors.

Headquartered in Belo Horizonte, Minas Gerais, Usinas Siderurgicas
de Minas Gerais S.A. - Usiminas (Usiminas) is the largest
integrated flat-steel manufacturer in Latin America, with
production of 5.3 million tons of crude steel and consolidated net
revenues of BRL 10.4 billion (approximately $US  3.5 billion
converted by the average exchange rate) for the LTM period ending
September 30, 2015. Usiminas also owns iron ore mining properties,
steel distribution and capital goods subsidiaries in Brazil.


==========================
C A Y M A N  I S L A N D S
==========================


AMERICAN GENERAL: Shareholders Receive Wind-Up Report
-----------------------------------------------------
The shareholders of American General CBO 1998-1 Ltd. received on
Jan. 8, 2016, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          David Dyer
          P.O. Box 1984 Grand Cayman KY1-1104
          Cayman Islands
          Telephone: (345)949-8244
          Facsimile: (345)949-5223


ASCEND TRADING: Shareholders Receive Wind-Up Report
---------------------------------------------------
The shareholders of Ascend Trading Limited received on Jan. 8,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          David Dyer
          P.O. Box 1984 Grand Cayman KY1-1104
          Cayman Islands
          Telephone: (345)949-8244
          Facsimile: (345)949-5223


CREP INVESTMENT I: Shareholder Receives Wind-Up Report
------------------------------------------------------
The shareholder of Crep Investment I Cayman received on Jan. 8,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          Intertrust SPV (Cayman) Limited
          190 Elgin Avenue George Town
          Grand Cayman KY1-9005
          Cayman Islands
          c/o Susan Craig/Jennifer Chailler
          Telephone: (345) 943-3100


CREP INVESTMENT K: Shareholder Receives Wind-Up Report
------------------------------------------------------
The shareholder of Crep Investment K Cayman received on Jan. 8,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          Intertrust SPV (Cayman) Limited
          190 Elgin Avenue George Town
          Grand Cayman KY1-9005
          Cayman Islands
          c/o Susan Craig/Jennifer Chailler
          Telephone: (345) 943-3100


CRYSTAL CLO: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of Crystal CLO, Ltd. received on Jan. 8, 2016,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          David Dyer
          P.O. Box 1984 Grand Cayman KY1-1104
          Cayman Islands
          Telephone: (345)949-8244
          Facsimile: (345)949-5223


GS STRUCTURED: Shareholders Receive Wind-Up Report
--------------------------------------------------
The shareholders of GS Structured Funding Limited received on
Jan. 8, 2016, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          David Dyer
          P.O. Box 1984 Grand Cayman KY1-1104
          Cayman Islands
          Telephone: (345)949-8244
          Facsimile: (345)949-5223


GSAM CREDIT: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of GSAM Credit CDO Ltd. received on Jan. 8, 2016,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          David Dyer
          P.O. Box 1984 Grand Cayman KY1-1104
          Cayman Islands
          Telephone: (345)949-8244
          Facsimile: (345)949-5223


NOUVELAIR TUNISIE: Shareholders Receive Wind-Up Report
------------------------------------------------------
The shareholders of Nouvelair Tunisie Cayman) Limited received on
Jan. 8, 2016, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          David Dyer
          P.O. Box 1984 Grand Cayman KY1-1104
          Cayman Islands
          Telephone: (345)949-8244
          Facsimile: (345)949-5223


SIGNUM BLUE: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of Signum Blue Limited received on Jan. 8, 2016,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          David Dyer
          P.O. Box 1984 Grand Cayman KY1-1104
          Cayman Islands
          Telephone: (345)949-8244
          Facsimile: (345)949-5223


SIGNUM BLUE II: Shareholders Receive Wind-Up Report
---------------------------------------------------
The shareholders of Signum Blue II Limited received on Jan. 8,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          David Dyer
          P.O. Box 1984 Grand Cayman KY1-1104
          Cayman Islands
          Telephone: (345)949-8244
          Facsimile: (345)949-5223


SIGNUM MENA: Shareholders Receive Wind-Up Report
------------------------------------------------
The shareholders of Signum Mena Limited received on Jan. 8, 2016,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          David Dyer
          P.O. Box 1984 Grand Cayman KY1-1104
          Cayman Islands
          Telephone: (345)949-8244
          Facsimile: (345)949-5223


SIGNUM MIG I: Shareholders Receive Wind-Up Report
-------------------------------------------------
The shareholders of Signum MIG I Limited received on Jan. 8, 2016,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          David Dyer
          P.O. Box 1984 Grand Cayman KY1-1104
          Cayman Islands
          Telephone: (345)949-8244
          Facsimile: (345)949-5223


SIGNUM PLATINUM II: Shareholders Receive Wind-Up Report
-------------------------------------------------------
The shareholders of Signum Platinum II Ltd received on Jan. 8,
2016, the liquidator's report on the company's wind-up proceedings
and property disposal.

The company's liquidator is:

          David Dyer
          P.O. Box 1984 Grand Cayman KY1-1104
          Cayman Islands
          Telephone: (345)949-8244
          Facsimile: (345)949-5223


VENTURE II: Shareholders Receive Wind-Up Report
-----------------------------------------------
The shareholders of Venture II CDO 2002, Limited received on
Jan. 8, 2016, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          David Dyer
          P.O. Box 1984 Grand Cayman KY1-1104
          Cayman Islands
          Telephone: (345)949-8244
          Facsimile: (345)949-5223


ZAIS ZEPHYR A-2: Shareholders Receive Wind-Up Report
----------------------------------------------------
The shareholders of Zais Zephyr A-2, Ltd received on Jan. 8, 2016,
the liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          David Dyer
          P.O. Box 1984 Grand Cayman KY1-1104
          Cayman Islands
          Telephone: (345)949-8244
          Facsimile: (345)949-5223


===================================
D O M I N I C A N   R E P U B L I C
===================================


DOMINICAN REP: Opposition Pull Out Major Blow to Electricity Pact
------------------------------------------------------------------
Dominican Today reports that the major opposition PRM party
withdrew from the talks aimed at forging the Electricity Pact,
citing the lack of necessary conditions to ensure the agreement's
enactment.

The PRM said the government should be transparent and disclose all
the details into the purchase of the 600 megawatt coal-fired power
plants being built in Paya, Bani (south), according to Dominican
Today.

The PRM said the participation of government representatives in
the debate has been characterized by "rigid positions defended
with a sectarian spirit," the report notes

In a letter to bishop and talks coordinator Agripino Nunez, PRM
president Andres Bautista blames "the government's unilateral
actions" for his organization's decision, the report discloses.

                             Major Blow

The PRM's decision deals yet another major blow to the potential
agreement, after the labor unions grouped in the CNTU also
announced their pullout citing a lack of transparency, the report
relays.

As reported in the Troubled Company Reporter-Latin America on
Jan. 26, 2016, Fitch Ratings has assigned a 'B+' rating to the
Dominican Republic's USD1.0 billion bond maturing 2026. The bond
has a coupon of 6.875%.

The proceeds are to partially finance the 2016 budget of the
government.


* DOMINICAN REP: Exports to Climb From US$9.6BB to US$10B This Yr.
------------------------------------------------------------------
Dominican Today reports that Dominican Republic Export and
Investment Center (CEI-RD) director Jean Alain Rodriguez said
Dominican exports topped US$9.6 billion in 2015, and expects the
figure to surpass US$10.0 billion this year.

The official, who announced the RD Export event, said it will be
the largest exhibit for exportable items to reach foreign markets,
will take place at Santo Domingo's Sans Souci Port Convention
Center, according to Dominican Today.

Mr. Rodriguez said more than 1,000 potential buyers linked to
agribusiness, construction, manufacturing and industry, health,
beauty, technology, culture, government services, among others are
expected to attend the event, the report notes.

In a press conference at CEI-RD Mr. Rodriguez said the event set
for June 27 to 29 will bring together companies and local
producers with domestic and international buyers by showcasing
products, business meetings, lectures and exhibitions, to seal
contracts, establish contacts and dynamic trade between sellers
and buyers, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Jan. 26, 2016, Fitch Ratings has assigned a 'B+' rating to the
Dominican Republic's USD1.0 billion bond maturing 2026. The bond
has a coupon of 6.875%.

The proceeds are to partially finance the 2016 budget of the
government.


* DOMINICAN REPUBLIC: Employers List Hurdles to Wage Hike
---------------------------------------------------------
Dominican Today reports that Dominican Republic Employers
Confederation (COPARDOM) president Joel Santos said the factors
which in his view prevent higher wages need to be addressed, to
make way to improve workers' benefits and the economy in general.

Mr. Santos said among the factors figure the high unemployment
rate, rigid labor regulations, and a large presence of
undocumented laborers and deficient training of human capital,
according to Dominican Today.

Quoted by acento.com.do, the business leader said an economically
active population of five million and an annual growth of 2.2% in
that figure, it takes 110,000 jobs per year "just to keep the
unemployment rate stable in 2015," the report notes.

"Generally speaking to improve wages in a faster way we must
attack the problem of unemployment and underemployment, because
the existence of these indicates that with the current salaries
people aren't willing to enter the formal labor market under
today's conditions," the report quoted Mr. Santos  as saying.

Mr. Santos said despite those hurdles formal market wages grow 5%
per year, according to official figures from the Social Security
Treasury (TSS), the report relays.

Nonetheless the business leader said it's difficult to accurately
measure the number of wages paid, due to nominal compensation not
covered as an integral part of a worker's salary, the report
notes.

"Examples of these items are allowances, gratuities, per diems,
fuel, housing, overtime and other bonuses, which make it
impossible to measure the correct variable for purposes of
economic studies," Mr. Santos said, the report discloses.
"We must also understand that we have an informal market of 55%
which makes it even more difficult to measure potential income."

The report notes that Mr. Santos said those who propose wage
increases on productivity gains, but based of closed data should
take into account the performance of the productivity of capital
and the development of technology, indicators which in his view
are difficult to determine from available information.

As reported in the Troubled Company Reporter-Latin America on
Jan. 26, 2016, Fitch Ratings has assigned a 'B+' rating to the
Dominican Republic's USD1.0 billion bond maturing 2026. The bond
has a coupon of 6.875%.

The proceeds are to partially finance the 2016 budget of the
government.


===========
M E X I C O
===========


DOCUFORMAS SAPI: S&P Affirms 'B+' Rating; Outlook Stable
--------------------------------------------------------
Standard & Poor's Ratings Services said that it has affirmed its
'B+' global scale and 'mxBBB/mxA-3' national scale ratings on
Docuformas S.A.P.I. de C.V.  The outlook remains stable.

S&P's ratings on Mexico-based non-bank financial institution
(NBFI) Docuformas reflect S&P's "adequate" assessment of its
business position due to its improved market share as a result of
its acquisition-based, average business mix, and business and
geographic concentration.  S&P also views its capital and earnings
as "adequate" based on S&P's forecasted RAC ratio of 8.6% for the
next 12-18 months and S&P's assessment of its "weak" risk position
due to weaker asset quality than those of its domestic peers.  The
ratings also incorporate S&P's view of Docuformas' "adequate"
funding and "moderate" liquidity.  The stand-alone credit profile
(SACP) is 'b+'.

S&P initially sets the anchor for NBFIs three notches below the
anchor for banks in the same country to reflect the typical lack
of access to the central bank's credit lines, lower regulatory
oversight, and higher competitive risk for these entities than for
banks.  S&P may modify that standard three-notch adjustment for
NBFIs in countries or in sectors where these differences don't
exist or are less pronounced (i.e., the finance company can access
funding from the central bank, is regulated to some degree, or has
unique competitive positions, such as monopolistic or
oligopolistic businesses).  In Mexico, the NBFI anchor is only two
notches below the bank anchor, reflecting the National Banking and
Securities Commission's oversight of some of them, and that there
is a good track record of government support through guarantees
and liquidity during periods of market turmoil.  In addition, some
NBFIs have funding lines from government-owned banks, which S&P
considers extremely stable.

Mexico's economic risk reflects its low per capita GDP, which
limits the country's ability to withstand economic downturns and
constrains household credit capacity.  Although Mexico has
maintained macroeconomic stability, its economy still lacks
dynamism.  Low-income levels, a large informal workforce, and
relatively weak rule of law limit credit growth prospects and
banking penetration.  These conditions result in high credit risk.
On the positive side, the Mexican financial system doesn't have
economic imbalances, and housing prices have remained fairly
stable for the past five years.

With regards to industry risk, in S&P's view, banks have good
profitability thanks to a healthy competitive environment and
sound pricing standards.  The sector's adequate regulatory
framework follows international standards, has fostered healthy
capitalization levels, and is strengthening its liquidity
oversight.  On the other hand, S&P believes the sector would
benefit from more extensive coverage of the financial system and
tougher regulation of NFBIs, particularly aimed at fraud
prevention.  An adequate and stable core customer deposit base
supports the sector's systemwide funding.

S&P assess Docuformas' business position as "adequate," supported
by a stronger market position (in terms of total leases and loans
in the leasing market), increasing business volumes, distribution
channels, and penetration of new customers after ARG's (Analistas
de Recursos Globales, S.A.P.I) acquisition in 2014.  Docuformas
currently serves more than 1,200 clients in the country.  Revenue
diversification and a significant growth in its loan portfolio
were some of the synergies Docuformas gained as a result of
integrating ARG.  Post-acquisition process is still ongoing and
S&P expects it to be completed by the end of the first half of
2016, when most of the core business areas would be integrated.
Docuformas' customer concentration has decreased due to the
acquisition of ARG, who had a well-diversified customer base.  In
this sense, the top 20 customers represent less than 20% of
Docuformas' total loans on a consolidated basis.  Compound annual
growth rate of Docuformas' operating revenues was about 15% during
the past four years, supporting its business stability.

S&P's capital and earnings assessment remains "adequate."  Despite
recent acquisitions, Docuformas' high dividend payments, and
relatively aggressive loan portfolio growth, it has maintained
solid internal capital generation.  As of September 2015, its RAC
ratio stood at 8.3% and S&P expects it will remain at a similar
level in the next 12-18 months.  S&P's base-case scenario
assumptions include:

   -- Mexico's expected GDP growth of 2.3% in 2015 and 3.0% in
      2016;

   -- A 25% average loan portfolio growth for the next two years;

   -- Net interest margin (NIM) of about 13% for the next 18
      months;

   -- Return on assets of about 3% for the next 12-18 months
      considering loan loans provisions, growth expectations, and
      noninterest expenses;

   -- Nonperforming assets (NPAs) at about 4% for the next 12-18
      months that will be fully covered by reserves by year-end
      2017; and

   -- No change in dividend policy in the next 12-18 months.

Profitability levels have remained stable for the past two years
thanks to NIMs of more than 12% and effective cost control.  As of
September 2015, return on average assets (ROAA) was 3.21% compared
with the three fiscal years average of 4.8%.  For the next two
years, S&P expects ROAA to be about 3% as a result of higher loan
loss provisions in order to improve asset quality.

"In our opinion, Docuformas' risk position is "weak," reflecting
relaxed underwriting standards compared with those of the Mexican
banking industry.  Docuformas' target market is middle market
customers who may or may not have access to bank financing and
therefore, in our view, potential losses from these clients could
increase during economic downturns.  Our risk assessment continues
to reflect the weaker asset quality of Docuformas' loan portfolio
as a result of the ARG acquisition.  However, we expect that the
continual review of the current loan portfolio will lead to an
improvement in the company's asset quality metrics.  As of
September 2015, Docuformas' NPAs were about 4.4% with reserve
coverage of 88%, and charge-offs were 0.85%.  Looking forward, we
expect credit losses to represent around 1% of total loans.  ARG
has higher NPAs than those of other finance companies we rate in
Mexico.  In addition, its loan loss reserves are insufficient to
cover its NPAs, which weaken Docuformas' asset quality.  Although
Docuformas will work to improve asset quality metrics, we expect
them to remain somewhat weaker than those of industry peers for
the next 12-18 months.  In our view, Docuformas' growth and
greater business diversification have strengthened its business
position, making it less vulnerable to single-client default or
credit quality deterioration in any specific sector," S&P said.

"We assess Docuformas' funding as "adequate."  The firm has an
adequate funding mix, consisting of market and banking debt, and
no significant maturity concentrations.  Additionally, under our
base-case scenario, Docuformas could access multiple funding
sources.  The firm's banking debt increased because of the ARG
acquisition, but its funding mix didn't change drastically.  We
expect this debt will account for a greater share of Docuformas'
total debt.  As of Sept. 30, 2015, the stable funding ratio was
59.05%, and we expect it will remain at that level for the next
12-18 months.  Also, by the end of September 2015, the firm funded
its operations with about 44% market debt and the rest mainly from
banks, with a ratio of short-to long-term mix of 40%/60%.  In our
view, this share of short-term debt helps Docuformas to maintain a
healthy funding profile, considering that most of its debt
maturities are in 2019.  Furthermore, we believe that Docuformas
balances its market debt with bank debt and short- and long-term
maturities," S&P noted.

S&P assess its liquidity as "moderate."  As of September 2015,
broad liquid assets to short-term wholesale funding were 0.29x,
similar to those of other finance companies S&P rates in Mexico.
Docuformas has sufficient liquidity to cover daily operations, and
S&P predicts positive cash flow in its base-case scenario.
However, S&P believes that Docuformas' heavy reliance on short-
term debt could damage its financial performance and could
pressure its liquidity ratios in a stress scenario.  In S&P's
opinion, liquidity will remain "moderate" in the next 12 months
with enough liquidity to cover its expected growth targets.

The stable outlook reflects S&P's expectation that the company
will maintain a RAC ratio around 8.6% as a result of its adequate
internal capital generation capacity and considering a steady loan
portfolio growth.  S&P expects asset quality metrics to improve in
the next 12-18 months as a result of a cleaning process of its
loan portfolio, a strategy that will intend to align the company's
NPA ratio and reserve coverage with industry benchmarks, while it
maintains low charge-offs.

S&P could lower the ratings over the next 12 months if Docuformas'
capitalization levels deteriorate, reflecting in a RAC ratio below
7%.  In addition, a downgrade could if Docuformas' asset quality
deteriorates on a sustained basis, along with poor reserve
coverage pressuring profitability and eroding capital base, or if
the company's liquidity levels were under pressure in order to
cover its short-term obligations.

S&P don't expect an upgrade in the next 12 months.


MEXICO: Unemployment Rate Climbs to 4.4 pct. in December
--------------------------------------------------------
EFE News reports that Mexico's unemployment rate was 4.4 percent
in December, up from the 4.2 percent level registered in the same
month of 2014, the National Institute of Statistics and Geography,
or INEGI, said.

The jobless rate also came in at 4.4 percent last month on a
seasonally adjusted basis, up 0.2 percentage points from November,
according to EFE News.

The report notes that the underemployment rate -- which takes into
account workers who are willing to work more hours but are unable
to do so -- was 8.4 percent in December, unchanged from the same
month of 2014, the INEGI said.

The statistics agency, which considers a worker to be employed if
they are older than 14 and work at least six hours a week in any
job, said the labor force participation rate was 95.4 percent in
December, the report relays.

A total of 58.1 percent of Mexico's workers were employed in the
informal sector of the economy last month, a figure lower than the
58.7 percent level registered in December 2014, the INEGI said,
the report notes.

The share of workers employed in the service sector was 42
percent, while 20 percent worked in retailing, 15.7 percent were
employed in manufacturing and 13.5 percent worked in agriculture,
the report says.

Roughly 7.5 percent of workers were employed in construction, 0.8
percent worked in other sub-sectors and the remaining 0.5 percent
were employed in unspecified occupations, the report notes.

Mexico has a population of 119.5 million, according to the latest
projections based on the 2010 census, of whom 55.3 million live in
poverty, the report adds.


===============
P A R A G U A Y
===============


PARAGUAY: Fitch Affirms 'BB' IDR; Outlook Stable
------------------------------------------------
Fitch Ratings has affirmed Paraguay's sovereign ratings as:

   -- Long-term foreign and local currency Issuer Default Ratings
      at 'BB', Outlook Stable;

   -- Issue ratings on senior unsecured foreign and local currency
      bonds at 'BB';

   -- Country ceiling at 'BB+';

   -- Short-term foreign currency IDR at 'B'.

                        KEY RATING DRIVERS

Paraguay's ratings balance a long track record of fiscal prudence
through different economic and political cycles, strong fiscal
solvency indicators and increased resilience to external shocks
against constraints on creditworthiness that include high output
volatility due to weather-related shocks, a low tax revenue base
and comparatively weak structural factors in terms of investment
rates, institutional quality and social development indicators.

Paraguay has demonstrated improved capacity to manage external
shocks without destabilizing effects for external accounts or
macroeconomic stability.  Adequate international reserves,
increased exchange rate flexibility and improved credibility of
monetary policy allow Paraguay to absorb multiple external
pressures derived from lower commodity prices (soy and beef),
economic underperformance in key trading partners (most notably
deep recession in Brazil) and increased financial market
volatility.

International reserves' coverage, equivalent to 5.8 months of
current external payments (CXP) or 22% of GDP, remains adequate to
mitigate risks related to commodity dependence, downside risks for
the Brazilian economy and high financial dollarization.  Moreover,
the guarani has depreciated by 23% in 2015 without creating risks
for financial or macroeconomic stability.

Growth slowed to an estimated 3% in 2015 as the external
environment worsened, but medium-term growth drivers are intact.
Although growth could slow further to 2.5% in 2016 as Brazil will
likely remain in deep recession and commodity prices will stay
weak, Fitch expects it to accelerate in 2017 in line with a less
adverse external environment, recovery in large neighbouring
economies and the execution of infrastructure projects.

Inflation averaged 3.1% in 2015, well below the central bank's
target of 4.5+/-2%.  Food inflation has remained under control,
and depreciation against the USD dollar has not been accompanied
by similar depreciation vis-a-vis trade partners (Argentina and
Brazil).  Core inflation, though, moved up to 3.7% in December
2015.  This development and increased volatility in global
financial markets prompted the central bank to increase its policy
rate by 25bps increase to 6% in January, reinforcing its
commitment to keep inflation in check in spite of more subdued
economic activity.

The current account deficit rose to an estimated 1.8% of GDP in
2015 and could remain above 2% over the forecast period, balancing
a weaker export outlook against reduced price of oil imports and
slower economic activity.  Fitch expects the deficit, which will
remain below 'BB' peers, to be financed by FDI.  The sovereign
will maintain access to external sources of financing such as
multilaterals and external capital markets.

The central government deficit reached 1.8% of GDP in 2015, up
from 1.1% in 2014.  At the general government level, Fitch
estimates that the deficit (2.2% of GDP) remained below the 'BB'
median and was the lowest among peer commodity exporters.
Nevertheless, the government missed the deficit ceiling of 1.5% of
GDP under the 2013 Fiscal Responsibility and Transparency Law
(LRTF).

The LRTF continues to face challenges to establish its role as an
appropriate institutional anchor for fiscal policy.  In contrast
to previous practice, the 2016 budget approved by Congress made
minimal changes to the proposal submitted by the Ministry of
Finance targeting a deficit of 1.5% of GDP.  Nevertheless, revenue
projections could prove hard to achieve in the context of subdued
growth, expenditure related to flooding and continued focus on
public investment by the current administration.  Hence, Fitch
expects the central government deficit to increase to 2.2% in
2016.

Fitch estimates that general government debt rose to 21.5% of GDP
in 2015, from 18.1% in 2014, driven by the guarani depreciation.
Debt levels remain less than half the 'BB' median of 44%.
Paraguay last accessed external bond markets in 2015, and the
sovereign could return to the external markets (the 2016 budget
authorizes USD700 million in issuance) in the event of favorable
conditions.

Given the deteriorating external environment and significant
infrastructure and social needs, authorities are currently
exploring changes to the fiscal rule to make it more responsive to
economic cycles and reduce its pro-cyclicality by targeting a
structural rather than a nominal balance.  In Fitch's view, the
potential changes to the fiscal responsibility law will be
analyzed in the context of improvements to fiscal policy
predictability and flexibility, development of a track record and
their impact on Paraguay's public finances, presently a key rating
strength.

RATING SENSITIVITIES

The main factors that could, individually or collectively, lead to
a rating action are:

Positive:

   -- Higher growth trajectory including higher investment levels
      and maintaining macroeconomic stability;

   -- Strengthening of external liquidity in relation to 'BB'
      peers;

   -- Structural improvements in public finances in terms of
      revenue base, expenditure rigidity and a continued moderate
      debt burden.

Negative:

   -- Commodity production shocks or severe export price falls
      that materially impair external and fiscal solvency ratios;

   -- Sustained fiscal deterioration in the context of financing
      constraints.

                          KEY ASSUMPTIONS

   -- Fitch assumes that Brazil will remain in recession (-2.5%)
      in 2016, after contracting by an estimated 3.7% in 2015.
      Recovery in Brazil and in Argentina will likely only
      materialize in 2017.

   -- Fitch assumes that Paraguay will maintain access to external
      sources of financing and continue attracting FDI inflows.

   -- Fitch oil prices average USD45 in 2016 and USD55 in 2017.



======================
P U E R T O    R I C O
======================


DF SERVICING: Meeting of Creditors Set for Feb. 1
-------------------------------------------------
The meeting of creditors of DF Servicing LLC is set to be held on
Feb. 1, 2016, at 9:00 a.m., according to a filing with the U.S.
Bankruptcy Court for the District of Puerto Rico.

The meeting will be held at Ochoa Building, First Floor, 500 Tanca
Street, San Juan, Puerto Rico.

The court overseeing the bankruptcy case of a company schedules
the meeting of creditors usually about 30 days after the
bankruptcy petition is filed.  The meeting is called the "341
meeting" after the section of the Bankruptcy Code that requires
it.

A representative of the company is required to appear at the
meeting and answer questions under oath.  The meeting is presided
over by the U.S. trustee, the Justice Department's bankruptcy
watchdog.

                        About DF Servicing

Engaged in the business of purchase and sale of construction
projects, DF Servicing, LLC, DF Tier I, LLC, DF Investments, LLC
and DF Holdings LLC filed Chapter 11 bankruptcy petitions (Bankr.
D.P.R. Case Nos. 15-10253 to 15-10256) on Dec. 24, 2015.  The
petitions were signed by Mark Mashburn, the president.  Charles A
Cuprill, PSC Law Office, serves as counsel to the Debtors.


PUERTO RICO: Senate Dems Pressure GOP on Bankruptcy Option
----------------------------------------------------------
Jonathan Randles at Law360.com reports that Senate Democrats are
pressuring their Republican counterparts to back legislation that
would allow Puerto Rico to restructure its $73 billion in debt
through the U.S. court system, saying that a bankruptcy option is
needed to avoid costly litigation with bondholders.

Forty-seven Senators, representing the entire Democratic caucus
and presidential candidate Bernie Sanders, I-Vt., sent a letter
urging Majority Leader Mitch McConnell, R-Ky., to support
legislation that would give Puerto Rico the ability to restructure
its municipal debt through bankruptcy, according to Law360.com.

As reported in the Troubled Company Reporter-Latin America on
Dec. 28, 2015, Moody's Investors Service has downgraded $1.09
billion of Puerto Rico appropriation bonds issued by the Public
Finance Corporation (PFC) to C from Ca, while maintaining other
ratings assigned to the US territory's debt.


PUERTO RICO ELECTRIC: Debt Restructuring Pact Extended to Feb. 16
-----------------------------------------------------------------
Michelle Kaske of Bloomberg News reports that Puerto Rico's main
electricity provider and its bondholders amended a plan to
restructure nearly $9 billion of debt, reinstating a tentative
agreement that expired last week and threatened to worsen the
commonwealth's financial crisis.

The report says Puerto Rico Electric Power Authority, investors,
bond-insurance companies and fuel-line lenders agreed to extend
the contract to Feb. 16, giving island lawmakers more time to pass
legislation to enable Prepa, as it's known, to cut its debt and
create a new customer surcharge, Lisa Donahue, the utility's chief
restructuring officer, said in a statement.  The restructuring
support agreement terminated January 22 after the legislature
failed to pass the measure.

Bloomberg News relays that the restructuring pact involves
investors and bond-insurance companies lending Prepa about $111
million through a bond sale, according to Stephen Spencer,
managing director at Houlihan Lokey, adviser to Prepa bondholders.
In return for the new Feb. 16 legislative deadline, investors and
insurers agreed to purchase half of the bonds when lawmakers pass
the legislation and buy the remaining debt when a petition
to implement the new customer surcharge is filed to the island's
energy commission, according to Donahue's statement.

"The agreements reflect the mutual understanding among Prepa and
its key creditors about the importance of Prepa's financial
restructuring and comprehensive transformation," Ms. Donahue said
in the statement, reports Bloomberg. "We have a long way to go,
and there remain many uncertainties, but if implemented Prepa's
transformation will have a positive, lasting impact on its
finances, operations and culture."

Without a plan, notes the report, Prepa is at risk of being sued
by its creditors and possibly defaulting on payments to investors
due July 1.  The termination was a step back for Puerto Rico,
relays Bloomberg News. The island is seeking to reduce $70 billion
of debt.  Governor Alejandro Garcia Padilla on Jan. 23 warned
lawmakers that the island may face blackouts if Prepa is
unable to purchase enough fuel.

Legislative leaders have made recent public statements, "which
have made it unequivocally clear that they want to get this deal
done and that the additional 25 days we are extending beyond the
original deadline is sufficient for the legislation to be
passed," the report quoted Mr. Spencer as saying in a statement.

The report recalls that without the restructuring, Prepa is unable
to pay creditor bills due in about five months, Ms. Donahue told a
House Natural Resources Committee this month. Prepa faces $428
million in principal and interest to investors on July 1 and
another $700 million to its fuel-line lenders, Donahue said.

Before the Jan. 22 deadline, Prepa asked creditors to delay that
end date to Feb. 12, notes the report.  Investors weren't willing
to extend unless the bond sale was contingent upon the island's
energy commission approving the new customer surcharge. Prepa
rejected that proposed change.

As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2015, Standard & Poor's Ratings Services maintained its
'CC' long-term and underlying ratings (SPURs) on Puerto Rico
Electric Power Authority's (PREPA) electric revenue bonds.
However, the ratings remain on CreditWatch, where they were
originally placed with negative implications on June 18, 2014.

As of June 30, 2015, PREPA had about $8.44 billion of long-term
debt outstanding, and an additional $730 million due to
noteholders.


                            ***********


Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades.  Prices
for actual trades are probably different.  Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind.  It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.

Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

Submissions about insolvency-related conferences are encouraged.
Send announcements to conferences@bankrupt.com


                            ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Valerie U. Pascual, Julie Anne L. Toledo, and Peter A.
Chapman, Editors.

Copyright 2016.  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
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Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000 or Nina Novak at
202-362-8552.


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