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        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, February 29, 2016, Vol. 17, No. 041


                            Headlines



A R G E N T I N A

ARGENTINA: Nears $5 Billion Settlement in Default Saga


B R A Z I L

BANCO DO BRASIL: Profits Surge 28% in 2015
BANCO BBM: Moody's Cuts LT Senior Unsecured Debt Rating to 'Ba2'
BANCO DE DESENVOLVIMENTO: Moody's Cuts LT GLC Issuer Rating to Ba3
BANCO VOTORANTIM: Moody's Cuts BCA Rating 'ba3'
BRASKEM AMERICA: Moody's Downgrades Global Scale Ratings to Ba1

BRAZIL: CyberlawStudio & COTS Advogados Enter Into Deal
BRAZIL GLOBAL: Moody's Cuts Depository Receipts Certs to 'Ba2'
BRF SA: Moody's Cuts Senior Unsecured Rating to 'Ba1'
BR MALLS: Moody's Cuts Global Scale Sr. Unsecured Rating to 'Ba2'
BR MALLS INT'L: Cuts Sr. Unsecured Perpetual Notes Ratings to Ba2

CENTRAIS ELETRICAS: Moody's Cuts Corporate Family Ratings to Ba3
CONCESSIONARIA DO SISTEMA: Moody's Cuts Ratings to Ba2/Aa2.br
COMPANHIA DE ELETRICIDADE: Moody's Cuts 2016 Bonds Ratings to Ba2
COMPANHIA ENERGETICA: Moody's Cuts Issuer Ratings to 'Ba3/A2.br'
EMBRAER OVERSEES: Moody's Cuts Sr. Unsecured Notes Ratings to Ba1

FIBRIA CELULOSE: Moody's Assigns Ba1 Global Scale Rating
FIBRIA OVERSEAS: Moody's Cuts Sr. Unsecured Notes Due 2024 to Ba1
FLEURY SA: Moody's Cuts Corporate Family Rating to Ba2/Aa2.br
MGI-MINAS GERAIS: Moody's Cuts Sr. Debenture Ratings to 'Ba3(sf)'
ODEBRECHT ENGENHARIA: Moody's Assigns Ba2 Corporate Family Rating

ODEBRECHT FINANCE: Moody's Cuts Unsecured Notes Rating to 'Ba2'
QUICKFOOD: Moody's Cuts Senior Notes Ratings to 'Ba1'
RAIZEN COMBUSTIVEIS: Moody's Cuts Corporate Family Rating to Ba1
RAIZEN ENERGY: Moody's Cuts Sr. Unsecured Notes Due 2017 to Ba1
RB CAPITAL: Moody's Cuts Global Scale Loc. Currency Rating to B3

ULTRAPAR PARTICIPACOES: Moody's Assigns Ba1 CFR, Outlook Neg.
VALE SA: Faces "Chin" Suit Over Misleading Financial Reports


C A Y M A N  I S L A N D S

1903 OFFSHORE: Placed Under Voluntary Wind-Up
1903 OFFSHORE SPV: Placed Under Voluntary Wind-Up
BB OPERATIONS: Commences Liquidation Proceedings
BB YACHTING: Commences Liquidation Proceedings
CPC/WEETABIX: Commences Liquidation Proceedings

EXCALIBUR INVESTMENTS: Placed Under Voluntary Wind-Up
GOTTEX HORIZON: Commences Liquidation Proceedings
ICS CAYCO: Commences Liquidation Proceedings
KARAMAAN GROUP: Placed Under Voluntary Wind-Up
KARAMAAN GROUP MASTER: Placed Under Voluntary Wind-Up

KPEB TRUSTEE: Shareholders Receive Wind-Up Report
LOOK'S HOLDING: Placed Under Voluntary Wind-Up
OCEAN DIAL: Placed Under Voluntary Wind-Up
OMAN HUNT: Commences Liquidation Proceedings
ROYCE GLOBAL: Placed Under Voluntary Wind-Up

SECUTRUST SHIPPING: Placed Under Voluntary Wind-Up
UFG RUSSIA: Placed Under Voluntary Wind-Up
UFG RUSSIA MASTER: Placed Under Voluntary Wind-Up
UFG RUSSIA PARTNERS: Placed Under Voluntary Wind-Up
ZEBEDEE TRADING: Placed Under Voluntary Wind-Up


C O S T A   R I C A

COSTA RICA: S&P Lowers Sovereign Rating to 'BB-', Outlook Neg.


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: To Grow 6% on US Rebound, Cheaper Oil


M E X I C O

BANCO INTERACCIONES: Moody's Assigns Ba1 LT GLC Rating


P E R U

CEMENTOS PACASMAYO: S&P Revises Outlook to Pos. & Affirms BB+ CCR


P U E R T O    R I C O

HALAIS GROUP: Voluntary Chapter 11 Case Summary
PUERTO RICO: Treasury Warns Congress of Debt Defaults


X X X X X X X X X

* BOND PRICING: For the Week From Feb. 22 to Feb. 26, 2016


                            - - - - -


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


ARGENTINA: Nears $5 Billion Settlement in Default Saga
-------------------------------------------------------
Jonathan Randles at Law360.com reports that Argentina is near a $5
billion settlement with creditors including NML Capital and
Aurelius Capital Partners that would resolve litigation more than
a decade old over the country's debt default, an attorney for the
firms told the Second Circuit.

Argentina and the firms have an agreement in place over the
economic terms but are still ironing out details such as how the
payment would be facilitated, Gibson, Dunn & Crutcher LLP partner
Matthew McGill told a three-judge panel, according to Law360.com.
The federal appeals court in Manhattan was hearing motions related
to injunctions that dictate how Argentina can deal with creditors,
the report notes.

The country has imposed a Feb. 29 deadline for accepting the terms
of the settlement; it was unclear whether Argentina would be
willing to extend the deadline for accepting its offer if the
parties can't agree, the report notes.

NML, Aurelius and fellow creditor Olifant Fund, which Mr. McGill
also represented at the hearing and would be included in the deal,
hold approximately 65 percent of the outstanding claims against
Argentina over its 2001 default, the report notes.

"We are so close to ending 15 years of litigation," Law360.com
quoted Mr. McGill as saying.

Though it remains to be seen whether the settlement will be agreed
to, statements from NML Aurelius' attorney are the strongest
indication yet that the parties are on the verge of resolving the
litigation, the report notes.

NML and Aurelius have sued Argentina in multiple jurisdictions in
an attempt to get assets from the country to satisfy those legal
judgments tied to the 2001 default, the report relays.  At the
time, it was the largest sovereign debt default in history, and
Argentina has sought to restructure more than $100 billion owed to
domestic and foreign creditors, the report discloses.

Argentina's new president, Mauricio Macri, who was elected in
November, has agreed to broker deals with bondholders, and said he
would be willing to vacate them as long as Argentina's Congress
repeals two local laws that blocked payment to holdout creditors
and makes payments to bondholders who settle by the deadline, the
report notes.

The report says that Mr. Macri's position is a swift departure
from the policies of his predecessor, Cristina Fernandez de
Kirchner.  Argentina has already agreed to pay creditors EM Ltd.
and Montreux Partners LP as much as $1.1 billion as part of the
settlement offer, the report notes.

During the hearing, judges questioned attorneys over procedural
issues tied to the injunction that could hinder the settlement
from going through, the report relays.  Attorneys for Argentina
and the firms reached an agreement intended to address those
issues and other outstanding matters with U.S. District Judge
Thomas Griesa over how the injunctions impact the litigation, the
report notes.

"The status quo has changed," Michael A. Paskin of of Cravath
Swaine & Moore LLP, one of Argentina's attorneys, said at the
hearing, the report notes.  "The government has come in and
changed its attitude," Mr. Paskin added.

Argentina is represented by Daniel Slifkin -- dslifkin@cravath.com
--, Michael A. Paskin -- mpaskin@cravath.com -- and Damaris
Hernandez -- dhernandez@cravath.com -- of Cravath Swaine & Moore
LLP.

Aurelius is represented by Friedman Kaplan Seiler & Adelman LLP
and Robbins Russell Englert Orseck Untereiner & Sauber LLP.  NML
is represented by Dechert LLP and Gibson Dunn & Crutcher LLP.

The lead case at the Second Circuit is NML Capital Ltd. et al. v.
The Republic of Argentina, case number 15-3675, before the U.S.
Court of Appeals for the Second Circuit.  The lead case at the
district court is NML Capital Ltd. v. Argentina, case number 1:08-
cv-06978, in the U.S. District Court for the Southern District of
New York.


                           *     *     *

The Troubled Company Reporter-Latin America reported in Nov. 27,
2015, that Moody's Investors Service has changed the outlook on
Argentina's Caa1 issuer rating to positive from stable.  The
outlook on Argentina's (P)Caa2 foreign legislation and
restructured local legislation foreign currency obligations is
also changed to positive from stable.  The outlook change is based
on Moody's view that the accession of president-elect Mauricio
Macri of the Cambiemos ("Let's Change") coalition will raise the
probability of credit positive policies being implemented,
including arriving at a resolution with holdout creditors, one of
Argentina's key credit constraints.

On Aug. 1, 2014, reported that Argentina defaulted on some of its
debt late July 30 after expiration of a 30-day grace period on a
US$539 million interest payment.  Earlier that day, talks with a
court- appointed mediator ended without resolving a standoff
between the country and a group of hedge funds seeking full
payment on bonds that the country had defaulted on in 2001.  A
U.S. judge had ruled that the interest payment couldn't be made
unless the hedge funds led by Elliott Management Corp., got the
US$1.5 billion they claimed.  The country hasn't been able to
access international credit markets since its US$95 billion
default 13 years ago.

As a result, reported the TCR-LA on Aug. 1, Standard & Poor's
Ratings Services lowered its unsolicited long-and short-term
foreign currency sovereign credit ratings on the Republic of
Argentina to selective default ('SD') from 'CCC-/C'.

The TCR-LA, on Aug. 4, 2014, also reported that Fitch Ratings
downgraded Argentina's Foreign Currency Issuer Default Rating
(IDR) to 'RD' from 'CC', and its Short-Term Foreign Currency
Issuer Default Rating to 'RD' from 'C'.

Meanwhile, Moody's Investors Service affirmed Argentina's Caa1
issuer rating, which also applies to domestic law bonds, confirmed
the (P)Caa2 rating for its foreign law bonds, and affirmed the Ca
rating on the original defaulted bonds. The long-term issuer
rating was placed on negative outlook, reported the TCR-LA on Aug.
5, 2014.

On Aug. 8, 2014, the TCR-LA reported that Moody's Latin America
Agente de Calificacion de Riesgo affirmed the deposit, debt,
issuer and corporate family ratings on Argentina's banks and
financial institutions, both on the global and national scales.
The outlook on these ratings has been changed to negative from
stable. At the same time, the rating agency has affirmed the
banks' Caa2 foreign-currency deposit ratings and Not-
Prime short-term ratings. The banks' standalone E financial
strength ratings corresponding to caa1 baseline credit assessments
(BCA) have also been affirmed.

The TCR-LA, On Aug. 6, 2014, also reported that DBRS Inc. has
downgraded Argentina's long-term foreign currency issuer rating
from CC to Selective Default (SD).  The short-term foreign
currency rating has been downgraded to Default (D), from R-5.  The
long-term and short-term local currency issuer ratings have been
confirmed at B (low) and R-5, respectively.  The trend on the
long-term local currency rating is Negative, and the trend on the
short-term local currency rating is Stable.

On Nov. 3, 2014, the TCR-LA reported that Fitch Ratings downgraded
Argentina's rating on Par Bonds issued under Foreign Law to 'D'
from 'C' as Argentina has not been able to cure the missed coupon
payments on its par bonds issued under foreign law after the
expiration of the 30-day grace period on Oct. 30.  According to
Fitch's criteria, this constitutes an event of default and Fitch
has downgraded the affected securities to 'D'.  In addition, Fitch
has affirmed:

   -- Foreign Currency Issuer Default Rating (IDR) at 'RD';
   -- Local Currency IDR at 'CCC';
   -- Short-term Foreign Currency IDR at 'RD';
   -- Country Ceiling at 'CCC'.
   -- Performing Foreign Law Exchanged Securities (Global 17) at
      'C';
   -- Local Currency exchanged bonds under Argentine Law at 'CCC';
   -- Foreign and Local Currency non-exchanged securities under
      Argentine Law at 'CCC';
   -- Discount Bonds issued under Foreign Law at 'D'.

On April 22, 2015, Moody's Investors Service expanded the portion
of Argentina's debt that is rated (P)Caa2. The (P)Caa2 rating
reflects the higher risk of default for both Argentina's
restructured foreign legislation debt (as before) and,
additionally now, its restructured local legislation foreign
currency obligations, as compared with the risk of default on
other debt instruments issued by Argentina.  Argentina's local
currency debt and its non-restructured foreign currency debt are
rated Caa1. The debt that remains in default since Argentina's
2001 default is rated Ca.



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



BANCO DO BRASIL: Profits Surge 28% in 2015
------------------------------------------
EFE News reports that Banco do Brasil said that net income totaled
BRL14.4 billion (about $3.64 billion) in 2015, up 28 percent from
the previous year.

The bank, whose shares trade on the Sao Paulo Stock Exchange, said
adjusted net income, excluding special and one-time charges,
totaled BRL11.59 billion (some $2.93 billion) last year, an
increase of just 2.2 percent compared to 2014, according to EFE
News.

The 2015 results benefited from the business generated by Cateno,
a subsidiary created jointly with credit-card company Cielo, that
generated profits of BRL3.21 billion (about $813 million), Banco
do Brasil said, the report notes.

Profits came in at BRL2.51 billion (about $635 million) in the
fourth quarter, down 15.1 percent from the same period in 2014 and
off 17.9 percent from the third quarter, the bank said, the report
relays.

Banco do Brasil's loan portfolio totaled BRL814.8 billion (about
$206.27 billion) as of Dec. 31, up 6.9 percent in 12 months, the
report notes.

The percentage of loans past due 90 days rose slightly from 2.03
percent in December 2014 to 2.38 percent in in December 2015, the
report says.

Brazil's economy, the largest in Latin America, is mired in a
recession, the report discloses.

Analysts, according to the weekly Central Bank survey, expect
Brazil's economy to contract by 3.4 percent this year, with
inflation hitting 7.62 percent, the report says.

Brazil had an inflation rate of 10.67 percent in 2015, the highest
level in 13 years, while the economy contracted by 3.71 percent,
according to analysts surveyed for the Boletin Focus, the erport
notes.

In an effort to bolster the fiscal situation, the government said
that it planned to cut spending by BRL23.4 billion (about $5.78
billion) this year.

Moody's Investors Service joined the two other major credit rating
agencies in downgrading Brazil's sovereign debt to junk territory.

Moody's lowered Brazil's credit rating by two notches from Baa3
(its lowest investment-grade rating) to Ba2 and changed the
country's outlook to "negative," a move that follows similar
actions by Fitch Ratings and Standard & Poor's.

As reported in the Troubled Company Reporter-Latin America on
Feb. 22, 2016, Standard & Poor's Ratings Services lowered Banco do
Brasil's global scale credit ratings to 'BB/Negative.'


BANCO BBM: Moody's Cuts LT Senior Unsecured Debt Rating to 'Ba2'
----------------------------------------------------------------
Moody's America Latina downgraded the long-term global local
currency issuer and debt ratings assigned to Banco BBM S.A., Banco
Daycoval S.A., BNDES Participacoes S.A. (BNDESPar), Itausa --
Investimentos Itau S.A. and Dibens Leasing S.A. -- Arrendamento
Mercantil, including the local currency subordinated debt ratings
assigned to the outstanding debentures issued by BFB Leasing S.A.
-- Arrendamento Mercantil and Ita£bank Leasing S.A. --
Arrendamento Mercantil, all of which are assumed by Dibens Leasing
S.A. -- Arrendamento Mercantil. The outlook on these ratings is
negative.

These actions follow and are in line with the rating action taken
by Moody's Investors Service (MIS) on 25 February 2016 that
downgraded the deposit and debt ratings assigned to these banks or
their affiliates. That action, in turn, followed MIS's downgrade
of Brazil's government bond rating to Ba2, from Baa3, with a
negative outlook, published on 24 February 2016.

The following are Brazilian financial institutions covered in this
press release:

-- Banco BBM S.A.

-- Banco Daycoval S.A.

-- BNDES Participacoes S.A.

-- Ita£sa -- Investimento Ita£ S.A.

-- Dibens Leasing S.A. -- Arrendamento Mercantil

-- BFB Leasing S.A. -- Arrendamento Mercantil (debt assumed by
    Dibens Leasing)

-- Ita£bank Leasing S.A. -- Arrendamento Mercantil (debt assumed
    by Dibens Leasing)

RATINGS RATIONALE

1.1. RATINGS DOWNGRADED IN LINE WITH THESE BANKS' OR AFFLIATES
DOWNGRADE

These rating actions were prompted by the downgrade by MIS of the
deposit ratings of these banks or their respective affiliates,
which in turn followed the downgrade of Brazil's bond rating. The
affected entities all have close economic linkages to the
sovereign.

WHAT COULD CHANGE THE RATING - DOWN

The negative outlooks on the long-term debt and deposit ratings of
these institutions reflect the negative outlook on the sovereign.
These ratings, which remain constrained by the sovereign, will
likely be downgraded further if Brazil's sovereign rating is
lowered again.

The bank's ratings may also face downward pressure if Brazil's
very challenging operating environment results in a deterioration
of their financial fundamentals, particularly profitability,
assets quality, and capitalization.

The following ratings assigned to Banco BBM S.A. were downgraded:

-- Long-term global local-currency senior unsecured debt rating:
    to Ba2 from Baa3, negative outlook

-- Long-term Brazilian national scale senior unsecured debt
    rating: to Aa2.br from Aa1.br

The following ratings assigned to Banco Daycoval S.A. were
downgraded:

-- Long-term global local-currency senior unsecured debt rating:
    to Ba2 from Baa3, negative outlook

-- Long-term global local-currency senior unsecured MTN rating:
    to (P)Ba2 from (P)Baa3

-- Long-term Brazilian national scale senior unsecured debt
    rating: to Aa2.br from Aa1.br

-- Long-term Brazilian national scale senior unsecured MTN
    rating: to Aa2.br from Aa1.br

The following ratings assigned to BNDES Participacoes S.A -
BNDESPAR were downgraded:

-- Long-term global local-currency issuer rating: to Ba2 from
    Baa3; negative outlook

-- Long-term global local-currency senior unsecured debt rating:
    to Ba2 from Baa3; negative outlook

-- Long-term global local-currency senior unsecured MTN rating:
    to (P)Ba2 from (P)Baa3

-- Long-term Brazilian national scale issuer rating: to Aa2.br
    from Aaa.br

-- Long-term Brazilian national scale senior unsecured debt
    rating: to Aa2.br from Aaa.br

-- Long-term Brazilian national scale senior unsecured MTN
    rating: to Aa2.br from Aaa.br

The following ratings assigned to Ita£sa -- Investimento Ita£ S.A.
were downgraded:

-- Long-term global local-currency issuer rating: to Ba3 from
    Ba1; negative outlook

-- Long-term Brazilian national scale issuer rating: to A2.br
    from Aa1.br

The following ratings assigned to Dibens Leasing S.A. --
Arrendamento Mercantil were downgraded:

-- Long-term global local-currency issuer rating: to Ba2 from
    Baa3, negative outlook

-- Long-term global local-currency senior unsecured MTN rating :
    to (P)Ba2 from (P)Baa3

-- Long-term global local-currency subordinate debt rating: to
    Ba3 from Ba1

-- Long-term global local-currency subordinate MTN rating: to
    (P)Ba3 from (P)Ba1

-- Long-term Brazilian national scale issuer rating: to Aa2.br
    from Aaa.br

-- Long-term Brazilian national scale senior unsecured MTN
    rating: to Aa2.br from Aaa.br

-- Long-term Brazilian national scale subordinate debt rating: to
    A2.br from Aa1.br

-- Long-term Brazilian national scale subordinate MTN rating: to
    A2.br from Aa1.br

The following ratings assigned to Ita£bank Leasing S.A. --
Arrendamento Mercantil (backed debt) were downgraded:

-- Long-term global local-currency subordinate debt rating: to
    Ba3 from Ba1 (outstanding debt assumed by Dibens Leasing S.A.
    -- Arrendamento Mercantil)

-- Long-term Brazilian national scale subordinate debt rating: to
    A2.br from Aa1.br (outstanding debt assumed by Dibens Leasing
    S.A. -- Arrendamento Mercantil)

The following ratings assigned to BFB Leasing S.A. -- Arrendamento
Mercantil (backed debt) were downgraded:

-- Long-term global local-currency subordinate debt rating: to
    Ba3 from Ba1 (outstanding debt assumed by Dibens Leasing S.A.
    -- Arrendamento Mercantil)

-- Long-term Brazilian national scale subordinate debt rating: to
    A2.br from Aa1.br (outstanding debt assumed by Dibens Leasing
    S.A. -- Arrendamento Mercantil)


BANCO DE DESENVOLVIMENTO: Moody's Cuts LT GLC Issuer Rating to Ba3
------------------------------------------------------------------
Moody's America Latina Ltda downgraded the long-term global local
currency and Brazilian national scale issuer ratings assigned to
four government-related institutions, including Banco de
Desenvolvimento de Minas Gerais S.A. (BDMG), Agencia de Fomento do
Parana S.A. (Fomento Parana), Desenvolve SP -- Agencia de Fomento
do Estado de Sao Paulo S.A. (Desenvolve SP) and Comp.de
Desenv.Habitacional e Urbano do Estado de Sao Paulo S.A. (CDHU).

This action follows Moody's announcement published on 24 February
2016 that it has downgraded the ratings of these government-
related institutions' (GRIs) government-shareholders, including
the States of Minas Gerais, Parana and Sao Paulo. For more
information, please refer to respective press releases "Moody's
downgrades the ratings of the Brazilian states of Sao Paulo, Minas
Gerais, and the Municipality of Belo Horizonte" and "Moody's
downgrades the ratings of the Brazilian states of Parana,
Maranhao, and the Municipality of Rio de Janeiro":

At the same time, Moody's downgraded the baseline credit
assessments (BCAs) assigned to BDMG and Fomento Parana to ba3 from
ba2, in line with similar actions taken on the ratings of the
state governments of Minas Gerais and Parana, reflecting the
strong economic and financial linkages between the regional
development entities and their respective government-shareholders.
The BCAs assigned to Desenvolve SP and CDHU, remained unchanged at
ba3 and caa1, respectively.

The following ratings and assessments were downgraded:

Banco de Desenvolvimento de Minas Gerais (BDMG):

  Long-term global local currency issuer rating to Ba3, from Ba1;
  negative outlook

  Long-term Brazilian national scale issuer rating to A2.br, from
  Aa2.br

  Baseline credit assessment to ba3, from ba2

Agencia de Fomento do Parana (Fomento Parana):

  Long-term global local currency issuer rating to Ba3, from Ba1;
  stable outlook

  Long-term Brazilian national scale issuer rating to A2.br, from
  Aa2.br

  Baseline credit assessment to ba3, from ba2

Desenvolve SP -- Agencia de Fomento do Estado de Sao Paulo S.A.:

  Long-term global local currency issuer rating to Ba2, from Ba1;
  negative outlook

Companhia de Desenvolvimento Habitacional e Urbano do Estado de
Sao Paulo S.A. (CDHU):

  Long-term global local currency issuer rating to B2 from B1;
  stable outlook

  Long-term Brazilian national scale issuer rating to Baa3.br,
  from Baa2.br

  Short-term Brazilian national scale issuer rating to BR-3, from
  BR-2

The following rating for Desenvolve SP -- Agencia de Fomento do
Estado de Sao Paulo S.A. was confirmed:

  Long-term Brazilian national scale issuer rating of Aa2.br

The following ratings and assessments were affirmed:

Desenvolve SP -- Agencia de Fomento do Estado de Sao Paulo S.A.:

  Short-term global local currency issuer rating of Not Prime

  Short-term Brazilian national scale issuer rating of BR-1

Banco de Desenvolvimento de Minas Gerais (BDMG):

  Short-term global local currency issuer rating of Not Prime

  Short-term Brazilian national scale issuer rating of BR-1

Agencia de Fomento do Parana (Fomento Parana):

  Short-term global local currency issuer rating of Not Prime

  Short-term Brazilian national scale issuer rating of BR-1

Companhia de Desenvolvimento Habitacional e Urbano do Estado de
Sao Paulo S.A. (CDHU):

Short-term global local currency issuer rating of Not Prime

The following assessments remained unchanged:

Desenvolve SP -- Agencia de Fomento do Estado de Sao Paulo S.A.:

Baseline credit assessment of ba3

Companhia de Desenvolvimento Habitacional e Urbano do Estado de
Sao Paulo S.A. (CDHU):

Baseline credit assessment of caa1

RATING RATIONALE

(1) ENTITIES' SUPPORTED LOCAL CURRENCY DEBT AND ISSUER RATINGS
WERE DONWGRADED FOLLOWING THE DOWNGRADE OF THE STATE GOVERNMENTS

The rating actions on these Brazilian issuers were prompted by the
downgrades of the states of Minas Gerais, Sao Paulo, and Parana,
which in turn followed the downgrade of Brazil's sovereign bond
rating to Ba2 from Baa3 on 24 February 2016.

The downgrade of the state governments' ratings consider the close
macroeconomic and institutional linkages between the state and
federal governments. The ongoing deterioration of Brazil's economy
has had and will continue to have a direct impact on the
creditworthiness of the Brazilian states.

Despite the downgrade of the state of Sao Paulo, the ratings of
both Desenvolve SP and CDHU continue to benefit from one and two
notches of uplift from government support respectively. Moody's
also continues to assess the willingness of the state governments
of Minas Gerais and Parana to provide financial support to BDMG
and Fomento Parana if necessary as high, given the strong economic
and strategic linkages between the state government and the
entities' main purpose. Nevertheless, as the ratings of the States
of Minas Gerais and Parana are now at the same level as the BCAs
of their respective GRIs, the GRI's issuer ratings no longer
benefit from uplift related to support.

The outlook on Desenvolve SP and BDMG are negative, in line with
the outlooks on their respective government-shareholders, while
the stable outlook on Fomento Parana reflects the stable outlook
on the government of that state. CDHU also has a stable outlook at
this juncture, as its supported B2 rating would not be affected by
a further downgrade of the rating of the state of Sao Paulo.

(2) DOWNGRADE OF BDMG'S AND FOMENTO PARANA'S STANDALONE BCAS

The downgrade of the standalone BCAs for BDMG and Fomento Parana
to ba3 from ba2 reflect the strong macroeconomic and institutional
linkages between these entities and their respective state
government-shareholders. Established to act as financial
development agents of the state governments with limited ability
to diversify and operate beyond the boundaries of their states,
these entities are highly dependent upon and vulnerable to their
local economies, both of which exhibit important concentrations in
certain segments and products.

WHAT COULD CHANGE THE RATING DOWN

If the ratings for their government-shareholders are downgraded
further, BDMG, Desenvolve SP and Fomento Parana's ratings and
assessments will face downward pressure as well.

The entities' ratings may also face downward pressure if Brazil's
very challenging operating environment results in a deterioration
of their financial fundamentals, particularly profitability,
assets quality, and capitalization, even if the ratings of the
shareholders remain unchanged.


BANCO VOTORANTIM: Moody's Cuts BCA Rating 'ba3'
-----------------------------------------------
Moody's Investors Service has  downgraded ratings assigned to 29
Brazilian banks and their respective offshore branches, Itau
Unibanco Holding S.A. and the Brazilian stock and future exchange
BM&F Bovespa S.A. These actions follow Moody's downgrade of
Brazil's government bond rating to Ba2, from Baa3, on February 24
, 2016, and the resulting changes in the country's debt and
deposit ceilings. The outlook on the sovereign rating is negative.

This rating action concludes the reviews initiated on 10 December
2015.

Specifically, Moody's downgraded those banks' baseline credit
assessments (BCAs) and bank deposit and debt ratings that were
either constrained by Brazil's sovereign bond rating or were
capped by the country ceilings. Except for certain local currency
deposit ratings that are higher than the sovereign ceiling for
deposits in local currency due to support from foreign affiliates,
the outlook of these ratings is now negative, in line with the
outlook on the sovereign rating.

At the same time, Moody's changed Brazil's Macro Profile to
Moderate from Moderate+, reflecting the country's deteriorating
operating environment and the increased risks this represents for
its banks. Consequently, Moody's lowered the BCAs and local and
foreign currency debt and/or deposit ratings of three additional
banks, the ratings of which were not constrained by the sovereign,
but whose outlooks had previously been negative. Lastly, Moody's
affirmed the BCAs, adjusted BCAs, and/or local and foreign
currency debt and deposit ratings of several banks.

RATINGS RATIONALE

(1) 31 BANKING ENTITIES' BCAS AND/OR DEPOSIT RATINGS WERE
DONWGRADED FOLLOWING THE DOWNGRADE OF BRAZIL'S GOVERNMENT BOND
RATING AND COUNTRY CEILINGS

These rating actions on Brazilian banks were prompted by the
downgrade of Brazil's bond rating and the lowering of the country
ceilings for debt and deposits. Specifically, Brazil's local
currency debt and deposit ceiling was lowered to A3 from A1, and
its foreign currency bond and deposit ceilings were lowered to Ba1
and Ba3, from Baa2 and Baa3, respectively.

Consequently, Moody's downgraded 29 entities' foreign currency
deposit ratings to Ba3, in line with the new foreign currency
deposit ceiling, and 18 entities' local currency deposit and/or
issuer ratings to Ba2. In addition, 14 banks' standalone BCAs were
downgraded to ba2. The affected local currency deposit and issuer
ratings and BCAs were constrained by the sovereign rating because
of their issuers' close economic linkages to the government.

WHAT COULD CHANGE THE RATING - DOWN

The negative outlooks on the long-term debt and deposit ratings of
these institutions reflect the negative outlook on the sovereign.
These ratings, which remain constrained by the sovereign and/or
the country ceilings, will likely be downgraded further if
Brazil's sovereign rating and its country ceilings are lowered
again.

The bank's ratings may also face downward pressure if Brazil's
very challenging operating environment results in a deterioration
of their financial fundamentals, particularly profitability, asset
quality, and capitalization.

Those ratings with stable outlooks are less exposed to a downgrade
of the sovereign; they could face downward pressure if their
foreign affiliates' ratings were to be downgraded, but that is not
currently anticipated, because parent bank's ratings have stable
outlook.

ENTITIES AFFECTED

1. Banco ABC Brasil S.A.

2. Banco Alfa de Investimento S.A.

3. Banco BBM S.A.

4. Banco Bradesco S.A. and Banco Bradesco S.A. Cayman Branch

5. Banco BTG Pactual S.A.

6. Banco Cetelem S.A.

7. Banco Citibank S.A.

8. Banco Cooperativo Sicredi S.A.

9. Banco Daycoval S.A.

10. Banco do Brasil S.A. and Banco Do Brasil S.A. Cayman Branch

11. Banco do Nordeste do Brasil S.A.

12. Banco do Estado do Rio Grande do Sul S.A.

13. Banco do Estado de Sergipe S.A.

14. Banco do Estado do Para S.A.

15. Banco Ford S.A.

16. Banco GMAC S.A.

17. Banco Industrial do Brasil S.A.

18. Banco Sofisa S.A.

19. BNDES - Banco de Desenvolvimento Economico e Social

20. Banco Mizuho do Brasil S.A.

21. Banco PSA Finance Brasil S.A.

22. Banco Safra S.A. and Banco Safra S.A. Cayman Branch

23. Banco Santander (Brasil) S.A. and Banco Santander (Brasil)
     S.A. - Cayman Branch

24. Banco Votorantim S.A. and Banco Votorantim S.A. Nassau Branch

25. BM&FBovespa S.A.

26. Caixa Economica Federal (CAIXA)

27. China Construction Bank (Brasil) S.A. and China Construction
     Bank (Brasil) S.A., Cayman

28. HSBC Bank Brasil S.A. - Banco Multiplo

29. ING Bank N.V. - Sao Paulo Branch

30. Itau Unibanco Holding S.A. and Itau Unibanco Holding S.A.
     Cayman Branch

31. Itau Unibanco S.A. and Itau Unibanco S.A. Cayman Branch

(2) BRAZIL MACRO PROFILE CHANGES TO MODERATE AS A RESULT OF THE
WEAKENING OF THE BRAZILIAN GOVERNMENT'S CREDIT PROFILE

Moody's downgrade of the Brazilian government's rating reflects in
part an ongoing deterioration in the country's macroeconomic
environment that increases risks for the banking system. Moody's
has lowered its assessment of Brazil's macro profile by one notch
to Moderate, from Moderate+. The reduction of Brazil's economic
and institutional strength considers the country's deep and
continuing recession, persistently high inflation, and thorny
political dynamics which make it difficult for the government to
address these other challenges.

Brazil's Moderate macro profile considers the following scores:

1. Economic strength at Moderate+ reflecting Brazil's large and
    highly diversified economy, offset by Moody's expectation that
    the country's deep recession will continue over the next 12
    months

2. Institutional strength at Moderate, reflecting the country's
    persistently high rate of inflation that reveals the limited
    effectiveness of monetary policy.

3. Susceptibility to event risk at Low+ considers Brazil's lack
    of political consensus , which have led to worsening
    governability and are not expected to improve in 2016. At the
    same time, International reserve buffers continue to provide
    ample cover against external financial shocks.

4. Credit and funding conditions remained unchanged with no
    adjustment, reflecting the moderation in loan growth that
    occurred in 2015 and is expected to continue this year,
    coupled with limited reliance on overseas funding and adequate
    domestic liquidity.

5. Industry structure also remains with a one-notch negative
    adjustment, taking into account the dominant presence of
    public banks, which accounted for roughly 52% of total credit
    in 2015 and which still continue to expand more rapidly than
    their private sector peers.

(3) 3 BANKS' BCAS AND DEPOSIT RATINGS WERE AFFECTED BY THE CHANGE
IN BRAZIL'S MACRO PROFILE TO MODERATE

The change in Brazil's macro profile reflects increasing pressures
on asset quality and profitability facing Brazilian banks. For
banks whose ratings were not constrained by the sovereign, higher
levels of capital and liquidity are often necessary to offset
their increasing vulnerability to these risks and to continue to
support the same ratings as these banks had in the past.
Consequently, Moody's has lowered the ratings for three of these
entities, each of which previously had a negative outlook. For the
remaining Brazilian banks, including both those whose ratings have
been affirmed and those that are unaffected by the current action,
the current ratings already anticipate the impact of worsening
operating conditions.

BANKS AFFECTED

BANCO VOTORANTIM S.A.

The downgrade of Banco Votorantim S.A.'s (BV) baseline credit
assessment (BCA) to ba3 from ba2 reflects heightened pressures on
its capital and asset quality arising from Brazil's weaker macro
environment. With the bank's large portfolio of used car loans
vulnerable to rising unemployment, asset quality is no longer
likely to recover as previously expected. In addition, the banks
is exposed to losses from its large corporate clients. The current
operating environment will also make it more difficult for the
bank to maintain recent improvements to profitability, therefore
limiting its capacity to enhance its very weak adjusted
capitalization.

The downgrade of BV's local currency deposit and senior debt
ratings to Ba2 from Ba1 consider it lower BCA and also the
downgrade of its majority owner Banco do Brasil S.A.'s BCA to ba2
from ba1. BV's deposit and senior debt ratings incorporate a one
notch of affiliate support uplift, to reflect Moody's view of the
high likelihood of support from Banco do Brasil. The foreign
currency deposit ratings was downgraded to Ba3, from Ba1, in line
with the downgrade of the ceiling for foreign currency deposits.
The negative outlook on BV's ratings reflects the negative outlook
on its parent.

WHAT COULD MOVE THE RATINGS DOWN

BV's ratings would face downward pressure if Banco do Brasil were
to be further downgraded. In addition, a deterioration of BV's
financial fundamentals, reflected in a downgrade of its BCA, could
drive another downgrade of its rating. Although BV's BCA is not
currently facing further downward pressure, it could be downgraded
if the bank experiences higher-than-expected deterioration of its
asset quality and profitability.

BRB -- BANCO DE BRASILIA .S.A

The downgrade of BRB-Banco de Brasilia S.A.'s (BRB) deposit rating
to B1 from Ba3 and a similar change to its BCA reflect rising
risks to BRB's profitability and asset quality, particularly with
regards to the bank's exposures to unsecured consumer loans and to
small and medium sized companies in the Federal District area. In
this context, the bank's adjusted capitalization ratio is no
longer sufficient to support its previous rating. At the same
time, BRB's b1 BCA reflects its adequate liquid resources and
strong funding profile, evidenced by a granular deposit base and
very low reliance on market funds.

WHAT COULD MOVE THE RATINGS DOWN

A sharp deterioration in asset quality and/or a further decline in
profitability or capital would likely lead to a further downgrade
on the ratings.

BANCO PINE S.A.

The downgrade of Banco Pine's deposit ratings to B1 from Ba3, and
the corresponding action on its baseline credit assessment (BCA),
similarly reflects the increasing risks represented by Brazil's
deteriorating operating environment to Banco Pine's financial
fundamentals and asset quality. Banco Pine exhibits large
concentrations of loans relative to equity in economic sectors
that face higher risk of financial deterioration in the current
environment, such as sugar and ethanol, and real estate. In turn,
the need to increase provisions for loan losses as economic
activity continues to decelerate could put further pressure on the
bank's profitability.

WHAT COULD MOVE THE RATINGS DOWN

Further downward pressure on ratings could arise from rising
delinquencies among the bank's large single borrowers, given the
bank's high loan concentration, particularly if this negatively
affects the bank's profitability and/or capital position.


BRASKEM AMERICA: Moody's Downgrades Global Scale Ratings to Ba1
---------------------------------------------------------------
Moody's Investors Service has downgraded to Ba1 from Baa3 the
global scale ratings of Braskem Finance Ltd and Braskem America
Finance Company, and all related debt rating, fully guaranteed by
Braskem S.A --  At the same time, Moody's has assigned a Ba1
corporate family rating to Braskem S.A. The outlook for all
ratings is negative.

The rating action follows Moody's downgrade on February 24, 2016
of Brazil's government bond rating to Ba2 from Baa3. In addition
to downgrading Brazil's government bond rating, Moody's also
downgraded the country's senior unsecured debt rating to Ba2 from
Baa3, and the senior unsecured shelf rating to (P)Ba2 from
(P)Baa3. The outlook was changed to negative. The rating agency
also changed Brazil's country ceiling that went to Ba1 from Baa2.

This rating action concludes the review for downgrade initiated on
December 11, 2015. Please see " Moody's downgrades Brazil's issuer
and bond ratings to Ba2 with a negative outlook" on moodys.com for
more information.

Ratings downgraded:

Issuer: Braskem America Finance Company

  $US750 million GTD Global Senior Unsecured notes due 2041: to
  Ba1 from Baa3

Issuer: Braskem Finance Ltd

  $US750 million GTD Global Senior Unsecured notes due 2024:
  to Ba1 from Baa3

  $US1 billion GTD Global Senior Unsecured notes due 2021: to Ba1
  from Baa3

  $US 500 million GTD Global Senior Unsecured notes due 2018: to
  Ba1 from Baa3

  $US500 million GTD Global Senior Unsecured notes due 2022: to
   Ba1 from Baa3

  $US250 million GTD Global Senior Unsecured notes (perpetual): to
  Ba1 from Baa3

  $US750 million GTD Global Senior Unsecured notes due 2020: to
  Ba1 from Baa3

  $US450 million GTD Global Senior Unsecured notes (perpetual): to
  Ba1 from Baa3

GTD Senior Unsec. Shelf: to (P)Ba1 from (P)Baa3

Ratings Assigned:

Issuer: Braskem S.A.

  LT Corporate Family Rating: Ba1

Outlook Actions:

Issuer: Braskem America Finance Company:

  Outlook, Changed To Negative From Rating Under Review

Issuer: Braskem Finance Ltd

  Outlook, Changed To Negative From Rating Under Review

Issuer: Braskem S.A.

  Outlook, Assigned Negative

RATINGS RATIONALE

Braskem's downgrade follows the Brazil sovereign rating downgrade
to Ba2 from Baa3. Braskem's Ba1 rating still ranks one notch above
Brazil's government bond rating, which is granted only on an
exceptional basis for issuers with fundamentals that are stronger
than the sovereign.

Despite Braskem's asset concentration in Brazil, the company has
been expanding internationally (exports from Brazil and
international operations in the US and Europe represented about
48% of the company's revenues in 2015) and we believe that it has
a strong financial profile and good revenue diversification
outside Brazil, which limits the impact of weak domestic economic
fundamentals on the company's creditworthiness. On a consolidated
basis, Braskem's credit metrics have improved, supported by
recovery in petrochemical spreads, the BRL depreciation and
increase in exports, which has offset the deceleration in economic
growth in Brazil. In 2015, reported EBITDA margins reached 19.8%,
a substantial improvement compared to 2015 margins of 12.2%.
However, the sluggish macroeconomic activity and political
uncertainties in Brazil could pressure Braskem's operating
performance.

Braskem's Ba1 rating is supported by its size as the largest
petrochemical company in Brazil and in the Americas by production
capacity of resins, with historically above industry average
operating margins coming from high capacity utilization rates,
long-term client relationships, and product customization. The
rating also reflects the company's dominant market position in
Brazil and the geographic diversification with operations in the
USA and Europe.

Geographic diversity should improve even further as the company
pursues international projects, including greenfield plants in
Latin American countries, as the Mexican Ethylene XXI project,
which will also support further feedstock diversification into
natural gas.

Challenges for the company's credit metrics include the timid
economic growth in the Brazilian domestic market, which somewhat
limits volume growth and margin expansion. The rating also factors
in the company's exposure to naphtha and gas prices and its
dependence on Petroleo Brasileiro S.A. -- Petrobras for the supply
of those inputs. Deceleration in global demand for resins and
basic petrochemicals is an additional challenge.

An upgrade of Braskem's rating would depend on an upgrade of
Brazil's government bond rating and on the maintenance of strong
credit metrics and liquidity. A gap of more than one notch with
Brazil's government bond rating is unlikely. In addition, the
ratings could be upgraded if Braskem's leverage (as measured by
Total Adjusted Debt to EBITDA) is sustained below 3x and the
company is able to maintain solid liquidity profile and positive
free cash flow generation.

Negative pressure on the rating could result from weaker operating
results or from persistently high leverage, with Total Adjusted
Debt to EBITDA of 3.75x or above and Retained Cash Flow/Total Debt
lower than 15%. Furthermore, the rating could be negatively
affected if Braskem assumes substantial risks related to
greenfield projects. A downgrade of Brazil's government bond
rating could also prompt a downgrade of Braskem's ratings.

Braskem S.A. (Braskem) is the largest producer of thermoplastic
resins (Polyethylene, Polypropylene and Polyvinyl chloride) in the
Americas, with annual production capacity of 7.7 million tons.
Braskem also produces caustic soda, chlorine and basic
petrochemicals as ethylene, propylene, gasoline, among others. In
the LTM ended December 2015, Braskem reported consolidated net
revenues of BRL 47.2 billion.


BRAZIL: CyberlawStudio & COTS Advogados Enter Into Deal
-------------------------------------------------------
In a move to further support start-ups, e-commerce businesses and
IT companies seeking specialized legal advice on international
projects, US law firm of CyberlawStudio and Brazilian law firm of
COTS Advogados (COTS Attorneys-at-law) announced that they have
entered into a collaboration agreement after several years of
cooperating on various multinational projects.

CyberlawStudio is a compact and efficient "legal services module"
serving New York, Los Angeles and San Francisco seasoned
entrepreneurs and professionals, emerging businesses and
technology startups on matters including company formation and
restructure, debt and equity financing, executive compensation,
employment, intellectual property, digital media, software,
internet law, commercial contract disputes and bankruptcies.

COTS Advogados (COTS Attorneys-at-law) is a law firm based in Sao
Paulo/Brazil specializing in advising e-commerce businesses and IT
companies, with projects domestic and overseas, including Brazil,
France, Spain, Germany, Italy, Russia, Angola, Argentina and
Chile.

"Many of COTS and CyberlawStudio's clients are in the internet,
e-commerce or IT industries servicing a global audience which
requires navigating a myriad of different country legal systems
when conducting their businesses", said COTS founding and managing
partner, Marcio Cots.

"Having strategic partners in different countries is imperative to
our firm and we could not have found a better partner than
CyberlawStudio when it comes to meeting our clients needs in the
US," added Mr. Cots.

"We are very excited about this partnership opportunity with COTS.
With a solid team of lawyers advising clients on business,
technology and intellectual property in the United States, we look
forward to Mr. Cots' extensive experience in international
projects to help create a seamless experience for our clients when
advising  them on issues with international legal ramifications",
said CyberlawStudio founding and managing partner, Julia Cheng.


BRAZIL GLOBAL: Moody's Cuts Depository Receipts Certs to 'Ba2'
--------------------------------------------------------------
Moody's Investors Service downgraded the ratings of the following
depositary receipts issued out of the Brazil Global Bond
Depository Receipt Program:

Brazil Global Bond Coupon Depository Receipts Certificate,
Downgraded to Ba2 (sf); previously on Dec 11, 2015 Baa3 (sf)
Placed Under Review for Possible Downgrade

Brazil Global Bond Coupon Strip Depository Receipts Certificate,
Downgraded to Ba2 (sf); previously on Dec 11, 2015 Baa3 (sf)
Placed Under Review for Possible Downgrade

Brazil Global Bond Long Term Coupon Depository Receipts
Certificate, Downgraded to Ba2 (sf); previously on Dec 11, 2015
Baa3 (sf) Placed Under Review for Possible Downgrade

Brazil Global Bond Principal Depository Receipts Certificate,
Downgraded to Ba2 (sf); previously on Dec 11, 2015 Baa3 (sf)
Placed Under Review for Possible Downgrade

RATINGS RATIONALE

Moody's Investors Service has concluded its review of the ratings
on the depositary receipts, which it had placed on review for
downgrade on December 11, 2015. The ratings of the depositary
receipts are linked to the rating of the 10 1/8% U.S. Dollar-
Denominated Unsecured Global Bonds due 2027 (the "Bonds"), issued
by Federative Republic of Brazil. The transaction is a structured
note whose ratings are based primarily upon the transaction's
structure and the credit quality of the Bonds. 's rating actions
are a result of the change in the rating of the Bonds, which was
downgraded by Moody's to Ba2 on February 24, 2016


BRF SA: Moody's Cuts Senior Unsecured Rating to 'Ba1'
-----------------------------------------------------
Moody's Investors Service downgraded BRF S.A.'s senior unsecured
rating and all related ratings to Ba1 from Baa2. At the same time,
Moody's assigned a Ba1 corporate family rating to BRF. The outlook
for the ratings is negative.

The rating action follows Moody's downgrade on February 24, 2016
of Brazil's government bond rating to Ba2 from Baa3. In addition
to downgrading Brazil's government bond rating, Moody's also
downgraded the country's senior unsecured debt rating to Ba2 from
Baa3, and the senior unsecured shelf rating to (P)Ba2 from
(P)Baa3. The outlook was changed to negative. The rating agency
also changed Brazil's country ceiling that went to Ba1 from Baa2.

This rating action concludes the review for downgrade initiated on
December, 2015. Please see " Moody's downgrades Brazil's issuer
and bond ratings to Ba2 with a negative outlook" on moodys.com for
more information.

Ratings downgraded:

Issuer: BRF S.A.

-- EUR 500 million global notes due 2022: to Ba1 from Baa2
    (global
    scale)

-- $US 173 million global notes due 2022: to Ba1 from Baa2
    (global scale)

-- $US 500 million global notes due 2023: to Ba1 from Baa2
    (global scale)

-- $US 750 million gtd global notes due 2024: to Ba1 from Baa2
    (global scale)

Issuer: BFF International Ltd

-- $US 750 million gtd global notes due 2020: to Ba1 from Baa2
    (global scale)

Issuer: Sadia Overseas Ltd

-- $US 250 million gtd global notes due 2017: to Ba1 from Baa2
    (global scale)

Ratings assigned:

Issuer: BRF S.A.

Corporate Family Rating: Ba1

The outlook for the ratings is negative.

RATINGS RATIONALE

The downgrade of BRF's ratings was prompted by the action that
downgraded Brazil's sovereign issuer and bond ratings to Ba2 from
Baa3. This concludes the review process initiated on December 11,
2015.

BRF's Ba1 rating ranks one notch above Brazil's government bond
rating of Ba2. Granted only on an exceptional basis, the notching
represents a fundamental corporate profile that is stronger than
the sovereign's government bond rating. Despite BRF's large
exposure to Brazil in terms of revenues and assets, its strong
financial profile and a resilient business model limit the impacts
of weak domestic economic fundamentals on the company's
creditworthiness. Furthermore, BRF has a significant portion of
its revenues related to international markets, as well as the
financial flexibility to reduce capital expenditure and dividend
payments to preserve liquidity and reduce its reliance on domestic
banks or capital markets to fund operations in case of need.
Nevertheless, the ratings are unlikely to stand more than one
notch above Brazil's sovereign rating, given BRF's close ties to
the Brazilian economy, with approximately 50% of sales coming from
the domestic market.

BRF's ratings reflect its good business profile, solid financial
position and leadership both in processed foods in Brazil and
global poultry exports. The company's value added portfolio and
strong brands bring overall higher margin stability and makes the
company more resilient to commodity price volatility. BRF also has
a well-developed and sophisticated logistics and distribution
structure, which is a key competitive strength.

Offsetting some of its positive attributes, the rating takes into
consideration BRF's exposure to grain prices and currency
volatility, since approximately 50% of sales come from chilled and
frozen meats and from the export markets. These risks are
partially mitigated by the use of hedging strategies in its
operations. In addition, Moody's recognizes expansion as a key
component of product and geographic diversification, but as the
company seeks a more global footprint, M&A activity could add
integration and financial risks.

The negative outlook on BRF's ratings mirrors Brazil's sovereign
ratings outlook.

Although unlikely in the short term, an upward rating momentum
would depend on an upgrade of Brazil's sovereign rating and on the
maintenance of steady and strong credit metrics.

A downgrade could result from a deterioration in liquidity or the
inability to deliver at least mid-single digit organic growth
rates. A downgrade could also occur if debt/EBITDA approaches
3.5x, EBITA/interest expense is less than 4.0x or CFO/net debt
less than 25% on a sustained basis. Negative pressure on the
ratings would also arise should Brazil's government bond rating be
further downgraded.

BRF S.A. is one of largest food conglomerates globally and posted
consolidated net revenues of BRL 31.3 billion in the last twelve
months ended September 2015. Processed food and food service,
which typically generates higher and less volatile margins than
the chilled and frozen protein export business, represented about
50% of net sales. The company operates 44 plants and 40
distribution centers, exports to more than 120 countries and has a
leading position in global poultry exports.


BR MALLS: Moody's Cuts Global Scale Sr. Unsecured Rating to 'Ba2'
-----------------------------------------------------------------
Moody's America Latina downgraded BR Malls Particapacoes, S.A's
global scale senior unsecured and corporate family ratings to Ba2
from Ba1, and affirmed the national scale senior unsecured and
corporate family ratings at Aa2.br. The rating outlook was revised
to negative from stable.

The following ratings were downgraded with a negative outlook:

BR Malls Participacoes S.A.:

-- Global scale senior unsecured and corporate family ratings to
    Ba2 from Ba1

The following rating was affirmed with a negative outlook:

BR Malls Participacoes S.A.:

-- National scale senior unsecured and corporate family ratings
    at Aa2.br

RATINGS RATIONALE

The rating actions and revision in outlook for BR Malls were taken
as a result of Moody's having downgraded Brazil's issuer and bond
ratings to Ba2 with a negative outlook from Baa3 under review for
a possible downgrade.

According to Moody's, BR Malls' operating performance is linked to
the strength of the Brazilian economy, which is undergoing an
economic shock with prospects of a slow recovery. The combined
effect of the volatility in the local economy, a challenging
political atmosphere, higher interest rates and a continued
decline in consumer spending could negatively impact BR Malls'
credit profile.

BR Malls' ratings reflect the company's dominant position as the
largest owner and manager of shopping centers in Brazil with a low
leveraged balance sheet and a substantial unencumbered asset pool.
The company's high-quality and resilient portfolio has
consistently generated strong EBITDA margins and has maintained
occupancy levels above 95% for multiple, consecutive years. In
addition, management continues to efficiently operate the
portfolio and keep its late payments, occupancy costs and tenant
turnover low. As part of its growth and asset recycling strategy,
the company has on-going expansion projects and recently sold
ownership interests in three none-core assets. BR Malls has a
manageable debt maturity schedule and a good liquidity position
with R$667 million of available cash and cash equivalents, plus
$318 million of proceeds generated from asset sales.

BR Malls' credit challenges include the higher exposure to the
slow recovery and anemic growth prospects of the Brazilian
economy. Moreover, because of higher interest rates, BR Malls has
higher risks related to its floating rate debt, which places
downward pressure on the fixed charge coverage. Additionally,
there is lease rollover risk for a portion of the portfolio in the
next 12-24 months. The rollover is part of the natural cycle of
the tenant base from contracts that were signed in 2010-2011
during the company's expansion period. The majority of these
leases are for satellite stores, which typically have five-year
terms in Brazil. Management's successful track record in
maintaining both high occupancy and operating efficiency levels
partially mitigates the leasing risk. Lastly, Moody's notes the
continued decline of BR Malls' same store sales growth to 0.9%
from 6.5% last year. In light of the challenging environment, the
company grew same store rents by 7%, albeit slightly lower from
the prior year.

The negative rating outlook reflects BR Malls' heightened exposure
to the uncertainty and risks of additional deterioration of
Brazil's credit profile.

An upgrade for BR Malls' would be predicated upon the overall
improvement of Brazil's sovereign bond ratings, in conjunction
with a). the company maintaining a fully loaded fixed charge
coverage above 2.0x on a sustained basis; b). secured debt as a
percentage of gross assets below 15%; c). continued successful
delivery and lease up of the total development pipeline.
Conversely, a downgrade would result from a). further downgrades
of Brazil's bond ratings; b). a fully loaded fixed charge coverage
below 1.3x on a sustained basis; c). inadequate liquidity for the
next 24 months; d). a significant decline in the portfolio's
occupancy rate and/or a 10% decline in EBITDA; e).debt to gross
assets consistently above 50%.

BR Malls Particapacoes, S.A. is based in Rio de Janeiro and is the
largest owner and manager of shopping centers in Brazil. The
company owns interests in a portfolio of 46 malls, totaling 1.65
million square meters of gross leasable area (GLA), located across
15 states.


BR MALLS INT'L: Cuts Sr. Unsecured Perpetual Notes Ratings to Ba2
-----------------------------------------------------------------
Moody's Investors Service downgraded BR Malls International
Finance Limited's rating of its US dollar guaranteed senior
unsecured perpetual notes to Ba2 from Ba1. The rating outlook was
revised to negative from stable.

The following rating was downgraded with a negative outlook:

BR Malls International Finance Limited:

-- US $405 million senior unsecured perpetual notes at Ba2

RATINGS RATIONALE

This rating action and revision in outlook for BR Malls were taken
as a result of Moody's having downgraded Brazil's issuer and bond
ratings to Ba2 with a negative outlook from Baa3 under review for
a possible downgrade.

According to Moody's, BR Malls' operating performance is linked to
the strength of the Brazilian economy, which is undergoing an
economic shock with prospects of a slow recovery. The combined
effect of the volatility in the local economy, a challenging
political atmosphere, higher interest rates and a continued
decline in consumer spending could negatively impact BR Malls'
credit profile.

BR Malls' ratings reflect the company's dominant position as the
largest owner and manager of shopping centers in Brazil with a low
leveraged balance sheet and a substantial unencumbered asset pool.
The company's high-quality and resilient portfolio has
consistently generated strong EBITDA margins and has maintained
occupancy levels above 95% for multiple, consecutive years. In
addition, management continues to efficiently operate the
portfolio and keep its late payments, occupancy costs and tenant
turnover low. As part of its growth and asset recycling strategy,
the company has on-going expansion projects and recently sold
ownership interests in three none-core assets. BR Malls has a
manageable debt maturity schedule and a good liquidity position
with R$667 million of available cash and cash equivalents, plus
$318 million of proceeds generated from asset sales.

BR Malls' credit challenges include the higher exposure to the
slow recovery and anemic growth prospects of the Brazilian
economy. Moreover, because of higher interest rates, BR Malls has
higher risks related to its floating rate debt, which places
downward pressure on the fixed charge coverage. Additionally,
there is lease rollover risk for a portion of the portfolio in the
next 12-24 months. The rollover is part of the natural cycle of
the tenant base from contracts that were signed in 2010-2011
during the company's expansion period. The majority of these
leases are for satellite stores, which typically have five-year
terms in Brazil. Management's successful track record in
maintaining both high occupancy and operating efficiency levels
partially mitigates the leasing risk. Lastly, Moody's notes the
continued decline of BR Malls' same store sales growth to 0.9%
from 6.5% last year. In light of the challenging environment, the
company grew same store rents by 7%, albeit slightly lower from
the prior year.

The negative rating outlook reflects BR Malls' heightened exposure
to the uncertainty and risks of additional deterioration of
Brazil's credit profile.

An upgrade for BR Malls' would be predicated upon the overall
improvement of Brazil's sovereign bond ratings, in conjunction
with a). the company maintaining a fully loaded fixed charge
coverage above 2.0x on a sustained basis; b). secured debt as a
percentage of gross assets below 15%; c). continued successful
delivery and lease up of the total development pipeline.
Conversely, a downgrade would result from a). further downgrades
of Brazil's bond ratings; b). a fully loaded fixed charge coverage
below 1.3x on a sustained basis; c). inadequate liquidity for the
next 24 months; d). a significant decline in the portfolio's
occupancy rate and/or a 10% decline in EBITDA; e).debt to gross
assets consistently above 50%.

BR Malls Particapacoes, S.A. is based in Rio de Janeiro and is the
largest owner and manager of shopping centers in Brazil. The
company owns interests in a portfolio of 46 malls, totaling 1.65
million square meters of gross leasable area (GLA), located across
15 states.

Moody's last rating action was on April 6, 2015 when it affirmed
the rating of BR Malls International Finance Limited at Ba1 for
its US dollar guaranteed senior unsecured perpetual notes with a
stable outlook.


CENTRAIS ELETRICAS: Moody's Cuts Corporate Family Ratings to Ba3
----------------------------------------------------------------
Moody's Investors Service took the following rating actions on its
portfolio of electric utilities as a result of the downgrade of
Brazil's issuer and bond ratings to Ba2 from Baa3 and the change
of outlook to negative as well as the downgrade of the ratings of
the States of Sao Paulo to Ba2 from Baa3 with a negative outlook,
Minas Gerais to Ba3 from Ba1 with a negative outlook and Parana to
Ba3/A2.br from Ba1/Aa2.br with a stable outlook on the global
scale and on the National Scale Rating (NSR), respectively.

RATINGS RATIONALE

These actions reflect Moody's view that the recent sovereign and
sub-sovereign rating actions, as a result of deteriorating
economic and fiscal perspectives together with worsening
governability and policy paralysis, will negatively affect the
credit quality of the following companies:

Centrais Eletricas Brasileiras SA-Eletrobras

  Corporate family ratings (CFR) downgraded to Ba3 from Ba2.
  Outlook changed to negative.

  BRL 1,750 million in senior unsecured global bonds maturing in
  2021 downgraded to Ba3 from Ba2.Outlook changed to negative.

Itaipu Binacional

  Issuer ratings downgraded to Ba2 from Baa3. Outlook changed to
  negative.

Companhia Energetica de Sao Paulo - CESP

  $US 1.4 billion senior unsecured MTN program downgraded to
  (P)Ba2 from (P)Baa3. Outlook changed to negative.

WHAT COULD CHANGE THE RATING UP/DOWN

In light of the current rating action and the negative outlooks,
an upgrade of the ratings is unlikely in the near term.

Further deterioration in the respective sovereign or sub-
sovereign's credit quality could exert downward pressure on these
infrastructure issuers. A downgrade would be triggered if Moody's
perceives a further deterioration in the regulatory frameworks
under which these companies operate. A sustained deterioration in
the relevant credit metrics of the issuer could also exert
downward rating pressure. Political interference in the normal
course of business of these issuers could also be considered a
trigger for a downgrade.


CONCESSIONARIA DO SISTEMA: Moody's Cuts Ratings to Ba2/Aa2.br
-------------------------------------------------------------
Moody's America Latina Ltda. took the following rating actions on
its portfolio of privately-managed toll roads as well as water,
gas and electric utilities and infrastructure companies as a
result of the downgrade of Brazil's issuer and bond ratings to Ba2
from Baa3 and the change of outlook to negative.

RATINGS RATIONALE

These actions reflect Moody's view that the recent sovereign
rating action, as a result of deteriorating economic and fiscal
perspectives together with worsening governability and policy
paralysis, will negatively affect the credit quality of the
following companies:

Concessionaria do Sistema Anhanguera-Bandeirantes S.A. (AutoBAn)

Issuer ratings downgraded to Ba2/Aa2.br from Baa2/Aaa.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

At the same time, Senior unsecured ratings of the following
issuances were downgraded to Ba2/Aa2.br from Baa2/Aaa.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative:

  BRL500 million Brazilian debentures

  BRL450 million Brazilian debentures

  BRL930 million Brazilian debentures

Concessionaria de Rodovias do Oeste de Sao Paulo -- VIAOESTE S.A.

Issuer ratings downgraded to Ba2/Aa2.br from Baa3/Aaa.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

Senior unsecured ratings of the following issuances downgraded to
Ba2/Aa2.br from Baa3/Aaa.br, under review for downgrade on the
global scale and on the National scale rating, respectively.
Outlook changed to negative:

  BRL440 million Brazilian debentures

  BRL750 million Brazilian debentures

Concessionaria Rodovia Presidente Dutra S.A.

Issuer ratings downgraded to Ba2/Aa2.br from Baa3./Aa1.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

Concessionaria de Rodovias do Interior do Oeste S.A. (SPVias)

Issuer ratings downgraded to Ba2/Aa2.br from Baa3/Aa1.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

Senior unsecured ratings of the BRL190 million Brazilian
debentures downgraded to Ba2/Aa2.br from Baa3/Aa1.br, under review
for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

CCR S.A.

Issuer ratings downgraded to Ba3/A2.br from Ba1/Aa2.br on the
global scale and on the National scale rating, respectively.
Outlook changed to negative from stable.

Concessionaria do Rodoanel Oeste S.A.

Ratings of the BRL550 million senior unsecured debentures
guaranteed by CCR S.A. (Ba3/A2.br) downgraded to Ba3/A2.br from
Ba1/Aa2.br on the global scale and on the National scale rating,
respectively. Outlook changed to negative from stable.

At the same time, ratings of the BRL750 million senior unsecured
debentures guaranteed by CCR S.A. (Ba3/A2.br) downgraded to
Ba3/A2.br from Ba1/Aa2.br on the global scale and on the National
scale rating, respectively. Outlook changed to negative from
stable.

Conc da Rodovia dos Lagos S.A. (ViaLagos)

Corporate family ratings (CFR) downgraded to Ba3/A2.br from
Ba1/Aa2.br on the global scale and on the National scale rating,
respectively. Outlook changed to negative from stable.

At the same time, the ratings on the BRL150 million senior
unsecured debentures downgraded to Ba3/A2.br from Ba1/Aa2.br on
the global scale and on the National scale rating, respectively.
Outlook changed to negative from stable.

Autovias S.A.

Issuer ratings downgraded to Ba2/Aa2.br from Baa3/Aa1.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

At the same time, the ratings on the BRL120 million senior
debentures due in 2017 were downgraded to Ba2/Aa2.br from
Baa3/Aa1.br, under review for downgrade on the global scale and on
the National scale rating, respectively. Outlook changed to
negative.

At the same time, the ratings on the BRL300 million senior
debentures due in 2017 were downgraded to Ba2/Aa2.br from
Baa3/Aa1.br, under review for downgrade on the global scale and on
the National scale rating, respectively. Outlook changed to
negative.

Concessionaria de Rodovias do Interior Paulista S.A.

Issuer ratings downgraded to Ba2/Aa2.br from Baa3/Aa1.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

At the same time, ratings on the BRL600 million senior debentures
due in 2018 downgraded to Ba2/Aa2.br from Baa3/Aa1.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

At the same time, the ratings on the BRL375 million senior
debentures were downgraded to Ba2/Aa2.br form Baa3/Aa1.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

Centrovias Sistemas Rodoviarios S.A.

Issuer ratings downgraded to Ba3/A2.br from Ba1/Aa1.br on the
global scale and on the National scale rating, respectively.
Outlook changed to negative from stable.

At the same time, the ratings on the BRL400 million senior
unsecured debentures were downgraded to Ba3/A2.br form Ba1/Aa1.br
on the global scale and on the National scale rating,
respectively. Outlook changed to negative from stable.

At the same time, the ratings on the BRL120 million senior secured
debentures were downgraded to Ba3/A2.br from Ba1/Aa1.br on the
global scale and on the National scale rating, respectively.
Outlook changed to negative from stable.

Vianorte S.A.

Issuer ratings downgraded to Ba3/A2.br from Ba1/Aa2.br on the
global scale and on the National scale rating, respectively.
Outlook changed to negative from stable.

At the same time, the ratings on the BRL150 million senior
unsecured debentures were downgraded to Ba3/A2.br from Ba1/Aa2.br
on the global scale and on the National scale rating,
respectively. Outlook changed to negative from stable.

At the same time, the ratings on the BRL100 million senior secured
debentures were downgraded to Ba3/A2.br from Ba1/Aa2.br on the
global scale and on the National scale rating, respectively.
Outlook changed to negative from stable.

ECORODOVIAS INFRAESTRUTURA E LOGISTICA S.A.

Ratings on the BRL600 million senior unsecured debentures in two
tranches of 3 and 5 years guaranteed by Ecorodovias Concessoes e
Serviáos S.A. (not rated) were downgraded to Ba3/A2.br from
Ba1/Aa1.br on the global scale and on the National scale rating,
respectively. Outlook changed to negative from stable.

Rota das Bandeiras S.A.

Issuer ratings downgraded to Ba3/A2.br from Ba1/Aa2.br on the
global scale and on the National scale rating, respectively.
Outlook remained negative.

At the same time, the ratings on the BRL1.1 billion senior secured
debentures were downgraded to Ba3/A2.br from Ba1/Aa2.br on the
global scale and on the National scale rating, respectively.
Outlook remained negative.

Invest. E Part. Em Infra-Estr S.A. -- INVEPAR

Corporate family ratings (CFR) downgraded to B1/Baa1.br from
Ba3/A2.br on the global scale and on the National scale rating,
respectively. Outlook changed to negative from stable.

Concessionaria Auto Raposo Tavares S.A.

Corporate family ratings (CFR) downgraded to B1/Baa1.br from
Ba3/A2.br on the global scale and on the National scale rating,
respectively. Outlook changed to negative from stable.

At the same time, ratings on the senior secured debentures were
downgraded to B1/Baa1.br from Ba3/A2.br on the global scale and on
the National scale rating, respectively. Outlook changed to
negative from stable.

Linha Amarela S.A.

Affirmed the Ba2/Aa3.br ratings of the senior secured debentures
on the global scale and on the National scale rating,
respectively. Outlook for changed to negative from stable.

Concessionaria Bahia Norte S.A. -- CBN

Affirmed the B1/Baa1.br corporate family ratings (CFR) on the
global scale and on the National scale rating, respectively.

At the same time, affirmed the B1/Baa1.br ratings of the senior
secured amortizing debentures due in 2019 on the global scale and
on the National scale rating, respectively. Outlook for all
ratings changed to negative from stable.

Concessao Metroviaria do Rio de Janeiro S.A.

Affirmed the Ba2/Aa2.br issuer ratings on the global scale and on
the National scale rating, respectively. At the same time, outlook
for all ratings was changed to negative from stable.

Concessionaria Rodovias do Tiete S.A.

Issuer ratings downgraded to B1/Baa1.br from Ba2/Aa3.br on the
global scale and on the National scale rating, respectively.
Outlook changed to negative from stable.

At the same time, the ratings on the BRL1,065 million senior
secured debentures were downgraded to B1/Baa1.br from Ba2/Aa2.br
on the global scale and on the National scale rating,
respectively. Outlook for all ratings changed to negative from
stable.

Concessionaria das Rodovias Ayrton Senna e Carvalho Pinto S.A.
(Ecopistas)

Issuer ratings downgraded to B1/Baa1.br.br from Ba2/Aa3.br on the
global scale and on the National scale rating, respectively.
Outlook changed to negative from stable.

At the same time, the ratings on the BRL350 million senior secured
debentures guaranteed by Ecorodovias Concessoes e Servicos
S.A.(not rated) were downgraded to Ba3/A2.br from Ba1/Aa2.br on
the global scale and on the National scale rating, respectively.
Outlook changed to negative from stable.

EATE -- Empresa Amazonense Transmissao Energia SA

Issuer ratings downgraded to Ba2/Aa2.br from Baa3/Aaa.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

At the same time, the ratings on the following debenture issuances
were downgraded to Ba2/Aa2.br from Baa3/Aaa.br, under review for
downgrade on the global scale and on the National scale rating,
respectively. Outlook changed to negative:

BRL 295 million due 2016

BRL159 million due 2020

BRL 150 million due 2017

ETEP - Empresa Paraense Transmissao de Energia

Issuer ratings downgraded to Ba2/Aa2.br from Baa3/Aa1.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

At the same time, the ratings on the BRL 69 million debentures due
2020 were downgraded to Ba2/Aa2.br from Baa3/Aa1.br, under review
for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

ENTE - Empresa Norte de Transmissao de Energia SA

Issuer ratings downgraded to Ba2/Aa2.br from Baa3/Aa1.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

At the same time, the ratings on the following BRL 248 million
debentures due 2020 issuances were downgraded to Ba2/Aa2.br from
Baa3/Aa1.br, under review for downgrade on the global scale and on
the National scale rating, respectively. Outlook changed to
negative.

Empresa Catarinense de Transmissao de Energia S.A. (ECTE)

Issuer ratings downgraded to Ba2 from Ba1 on the global scale and
affirmed at Aa2.br on the National scale rating, respectively.
Outlook changed to negative from stable.

At the same time, the ratings on the BRL80 million senior
unsecured debentures were downgraded to Ba2 from Ba1 on the global
scale and affirmed at Aa2.br on the National scale rating,
respectively. Outlook changed to negative from stable.

Transmissora Alianáa de Energia Eletrica S.A. -- TAESA

Issuer ratings downgraded to Ba2/Aa2.br from Baa3/Aa1.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

At the same time, the ratings on BRL 425 million and BRL 245
million senior unsecured debentures were downgraded to Ba2/Aa2.br
from Baa3/Aa1.br, under review for downgrade on the global scale
and on the National scale rating, respectively. Outlook changed to
negative.

At the same time, the ratings on BRL 145 million subordinated
debentures were downgraded to Ba3/A2.br from Ba1/Aa2.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

Transmissora Sul Litoranea de Energia S.A. (TSLE)

Corporate family ratings (CFR) downgraded to Ba3/A2.br from
Ba1/Aa1.br on the global scale and on the National scale rating,
respectively. The outlook for all ratings was changed to negative
from stable.

At the same time, the ratings on the senior secured debentures
were downgraded to Ba3/A2. From Ba1/Aa1.br br on the global scale
and on the National scale rating, respectively. Outlook changed to
negative from stable.

Bandeirante Energia SA

Issuer ratings downgraded to Ba2/Aa2.br from Baa3/Aa1.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

At the same time, ratings on the BRL 390 million subordinated
debentures due 2016 were downgraded to Ba3/A2.br from Ba1/Aa2.br,
under review for downgrade on the global scale and on the National
scale rating, respectively. Outlook changed to negative.

Espirito Santo Centrais Eletricas -- Escelsa

Issuer ratings downgraded to Ba2/Aa2.br from Baa3/Aa1.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

Cia de Gas de Sao Paulo -- COMGAS

Issuer ratings downgraded to Ba2/Aa2.br from Baa3/Aa1.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

At the same time, the ratings on the BRL592 million senior
debentures due in 2025 were downgraded to Ba2/Aa2.br from
Baa3/Aa1.br, under review for downgrade on the global scale and on
the National scale rating, respectively. Outlook changed to
negative.

At the same time, the ratings on the BRL540 million senior
debentures due in 2020 were downgraded to Ba2/Aa2.br to
Baa3/Aa1.br, under review for downgrade on the global scale and on
the National scale rating, respectively. Outlook changed to
negative.

Celesc Distribuicao S.A

Issuer ratings downgraded to Ba3/A2.br from Ba2/A1.br on the
global scale and on the National scale rating, respectively.
Outlook remained negative.

At the same time, the ratings on the BRL300 million senior
unsecured 6-year amortizing debentures maturing in 2019 were
downgraded to Ba3/A2.br from Ba2/A1.br on the global scale and on
the National scale rating, respectively. Outlook remained
negative.

Centrais Eletricas de Santa Catarina S.A.

Issuer ratings downgraded to B1/Baa1.br from Ba3/A3.br on the
global scale and on the National scale rating, respectively.
Outlook remained negative.

Energisa S.A.

Corporate family ratings (CFR) downgraded to Ba2 from Ba1 on the
global scale and affirmed at Aa2.br on the National scale rating.
Outlook changed to negative from stable.

At the same time, the ratings on the BRL400 million senior
unsecured amortizing debentures in two tranches of 5 and 7 years
were downgraded to Ba3/A2.br from Ba2/Aa3.br on the global scale
and on the National scale rating, respectively. Outlook changed to
negative from stable.

EDP - Energias do Brasil S.A.

Corporate family ratings (CFR) downgraded to Ba3/A2.br from
Ba2/Aa3.br on the global scale and on the National scale rating,
respectively. Outlook remained negative.

At the same time, the ratings on the BRL750 million senior
unsecured non-convertible callable debentures were downgraded to
Ba3/A2.br from Ba2/Aa3.br on the global scale and on the National
scale rating, respectively. Outlook remained negative.

Light S.A.

Corporate family ratings (CFR) downgraded to Ba3/A2.br from
Ba2/Aa3.br on the global scale and on the National scale rating,
respectively. Outlook remained negative.

Light Servicos De Eletricidade S.A.

Issuer ratings downgraded to Ba3/A2.br from Ba2/Aa3.br on the
global scale and on the National scale rating, respectively.
Outlook remained negative.

At the same time, the ratings on the backed senior unsecured
debentures due in 2016 were downgraded to Ba3/A2.br from
Ba2/Aa3.br on the global scale and on the National scale rating,
respectively. Outlook remained negative.

Eletropaulo Met. Elet. de Sao Paulo

Issuer ratings downgraded to Ba3/A2.br from Ba2/Aa3.br on the
global scale and on the National scale rating, respectively.
Outlook remained negative.

At the same time, the ratings on the BRL 750 million senior
unsecured debentures were downgraded to Ba3/A2.br from Ba2/Aa3.br
on the global scale and on the National scale rating,
respectively. Outlook remained negative.

Energest SA

Issuer ratings downgraded to Ba2/Aa2.br from Baa3/Aa1.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

At the same time, the ratings on the BRL 120 million senior
debentures due 2017 were downgraded to Ba2/Aa2.br from Baa3/Aa1.br
on the global scale and on the National scale rating,
respectively. Outlook changed to negative.

Duke Energy International Geracao Paranapanema SA

Issuer ratings downgraded to Ba2/Aa2.br from Baa3/Aaa.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

At the same time, the ratings on the following debenture issuances
were downgraded to Ba2/Aa2.br from Baa3/Aaa.br, under review for
downgrade on the global scale and on the National scale rating,
respectively. Outlook changed to negative:

BRL 239 million due 2019

BRL 240 million due 2021

BRL 250 million due 2018

BRL 250 million due 2023

BRL 150 million due 2017

AES Tiete S.A.

Issuer ratings downgraded to Ba2/Aa2.br from Baa3/Aa1.br, under
review for downgrade on the global scale and on the National scale
rating, respectively. Outlook changed to negative.

At the same time, the ratings on the following debenture issuances
were downgraded to Ba2/Aa2.br from Baa3/Aa1.br, under review for
downgrade on the global scale and on the National scale rating,
respectively. Outlook changed to negative:

BRL498 million due in 2019

BRL440 million due in 2022

BRL300 million due in 2020

Lajeado Energia S.A.

Issuer ratings downgraded to Ba2 from Ba1 on the global scale and
affirmed at Aa2.br on the National scale rating. Outlook remained
negative.

At the same time, the ratings on the BRL 450 million senior
unsecured amortizing debentures with final maturity in 2019 were
downgraded to Ba2 form Ba1on the global scale and affirmed at
Aa2.br on the National scale rating, respectively. Outlook
remained negative.

Light Energia S.A.

issuer ratings downgraded to Ba3/A2.br from Ba2/Aa3.br on the
global scale and on the National scale rating, respectively.
Outlook remained negative.

At the same time, the ratings on the backed senior unsecured
debentures due in 2016 were downgraded to Ba3/A2.br from
Ba2/Aa3.br on the global scale and on the National scale rating,
respectively. Outlook remained negative.

CPFL Energias Renovaveis S.A.

Corporate family ratings (CFR) downgraded to Ba3/A2.br from
Ba2/A1.br on the global scale and on the National scale rating,
respectively. Outlook remained negative.

Empresa de Energia Sao Manoel S.A.

Ratings on the backed senior unsecured debentures were downgraded
to Ba3/A2.br from Ba2/Aa3.br on the global scale and on the
National scale rating, respectively. Outlook remained negative.

Brennand Energia S.A.

Affirmed the Ba3/A3.br corporate family ratings (CFR) on the
global scale and on the National scale rating, respectively.
Outlook changed to negative from stable.

Brennand Investimentos S.A.

Affirmed the Ba3/A3.br corporate family ratings (CFR) on the
global scale and on the National scale rating, respectively.
Outlook changed to negative from stable.

Andrade Gutierrez Participacoes S.A. (AG Par)

Corporate family ratings (CFR) downgraded to B1/Baa1.br from
Ba2/Aa2.br on the global scale and on the National scale rating,
respectively. Outlook changed to negative from stable.

At the same time, the ratings on the backed senior unsecured
debentures were downgraded to B1/Baa1.br from Ba2/Aa2.br on the
global scale and on the National scale rating, respectively.
Outlook changed to negative from stable.


COMPANHIA DE ELETRICIDADE: Moody's Cuts 2016 Bonds Ratings to Ba2
-----------------------------------------------------------------
Moody's Investors Service took the following rating actions on its
portfolio of gas and electric utilities and project finance as a
result of the downgrade of Brazil's issuer and bond ratings to Ba2
from Baa3 and the change of outlook to negative.

This rating action concludes the review for downgrade announced on
December 10, 2015.

RATINGS RATIONALE

These actions reflect Moody's view that the recent sovereign
rating action, as a result of deteriorating economic and fiscal
perspectives together with worsening governability and policy
paralysis, will negatively affect the credit quality of the
following companies:

Companhia de Eletricidade do Estado da Bahia - COELBA

BRL400 million senior unsecured global bonds maturing in April
2016 downgraded to Ba2 from Baa3. Outlook changed to negative.

QGOG Atlantic / Alaskan Rigs Ltd.

$US 700 million senior secured global notes due in 2018 downgraded
to Caa1 from B1. Outlook changed to negative.

Odebrecht Drilling Norbe VIII/IX Ltd.

$US 1,500 million senior secured global notes due in 2021
downgraded to Caa2 from B2, Outlook changed to negative.

WHAT COULD CHANGE THE RATING UP/DOWN

In light of the current rating action and the negative outlooks,
an upgrade of the ratings is unlikely in the near term.

Further deterioration in the sovereign credit quality could exert
downward pressure on these infrastructure issuers. A downgrade
would be triggered if Moody's perceives a further deterioration in
the regulatory frameworks under which these companies operate. A
sustained deterioration in the relevant credit metrics of the
issuers could also exert downward rating pressure. Political
interference in the normal course of business of these issuers
could also be considered a trigger for a downgrade.


COMPANHIA ENERGETICA: Moody's Cuts Issuer Ratings to 'Ba3/A2.br'
----------------------------------------------------------------
Moody's America Latina Ltda. took the following rating actions on
its portfolio of water and electric utilities as a result of the
downgrade of Brazil's issuer and bond ratings to Ba2 from Baa3 and
the change of outlook to negative, as well as the downgrade of the
ratings of the States of Sao Paulo to Ba2 from Baa3 with a
negative outlook, Minas Gerais to Ba3 from Ba1 with a negative
outlook and Parana to Ba3/A2.br from Ba1/Aa2.br with a stable
outlook on the global scale and on the National Scale Rating
(NSR), respectively.

RATINGS RATIONALE

These actions reflect Moody's view that the recent sovereign and
sub-sovereign rating actions, as a result of deteriorating
economic and fiscal perspectives together with worsening
governability and policy paralysis, will negatively affect the
credit quality of the following companies:

Companhia Energetica de Minas Gerais -- CEMIG

Issuer ratings downgraded to Ba3/A2.br from Ba1/Aa2.br, under
review for downgrade on the global scale and on the National Scale
Rating (NSR), respectively. Outlook changed to negative.

CEMIG Distribuicao S.A.

Issuer ratings downgraded to Ba3/A2.br from Ba1/Aa2.br, under
review for downgrade on the global scale and on the National Scale
Rating (NSR), respectively. Outlook changed to negative.

At the same time, the ratings on the global and national scales of
the following issuances were downgraded to Ba3/A2.br from
Ba1/Aa2.br, under review for downgrade. Outlook changed to
negative:

Backed senior unsecured BRL653.67 million Brazilian debentures

Backed senior unsecured BRL1,095.51 million Brazilian debentures

Backed senior unsecured BRL410.82 million Brazilian debentures

CEMIG Geracao e Transmissao S.A.

Corporate Family Ratings (CFR) downgraded to Ba3/A2.br from
Ba1/Aa2.br, under review for downgrade on the global scale and on
the National Scale Rating (NSR), respectively. Outlook changed to
negative.

At the same time, the ratings on the global and national scales of
the following issuances were downgraded to Ba3/A2.br. from
Ba1/Aa2.br, under review for downgrade. Outlook changed to
negative:

Backed senior unsecured BRL670 million Brazilian debentures

Backed senior unsecured BRL972.75 million Brazilian debentures

Backed senior unsecured BRL480 million Brazilian debentures

Backed senior unsecured BRL27.25 million Brazilian debentures

Backed senior unsecured BRL1,400 million in Brazilian debentures

Backed senior unsecured BRL200 million in Brazilian debentures

Backed senior unsecured BRL349.60 million in Brazilian debentures

Companhia de Saneamento do Parana - Sanepar

Issuer ratings downgraded to Ba3/A2.br from Ba1/Aa2.br, under
review for downgrade on the global scale and on the National Scale
Rating (NSR), respectively. Outlook changed to stable.

BRL600 million senior debentures due in 2020 downgraded to
Ba3/A2.br from Ba1/Aa2.br, under review for downgrade on the
global scale and on the National Scale Rating (NSR), respectively.
Outlook changed to stable.

Companhia de Saneamento de Minas Gerais S.A. -- COPASA

Corporate Family Ratings (CFR) downgraded to Ba3/A2.br from
Ba1/Aa2.br, under review for downgrade on the global scale and on
the National Scale Rating (NSR), respectively. Outlook changed to
negative.

At the same time, ratings on the global and national scales of the
following issuances were downgraded to Ba3/A2.br from Ba1/Aa2.br,
under review for downgrade. Outlook changed to negative:

BRL200million senior unsecured Brazilian debentures due in 2017

BRL200million senior unsecured Brazilian debentures due in 2019

BRL350million senior unsecured Brazilian debentures due in 2020

BRL 250million senior unsecured Brazilian bonds

Companhia de Saneamento Basico do Estado de Sao Paulo's (Sabesp)

Corporate Family Ratings (CFR) downgraded to Ba from Ba1on the
global scale and affirmed at Aa2.br on the National Scale Rating
(NSR). Outlook remained negative.

POTENTIAL MAPPING RECALIBRATION FROM GLOBAL SCALE TO NATIONAL
SCALE RATINGS

With the recent downgrade of the government of Brazil on the
global rating scale and other issuers whose risk profiles are
affected by related credit considerations, the distribution of
national scale ratings (NSRs) among issuers in Brazil has become
compressed, particularly at the Aa2.br level. As a result, the
current mapping of global scale ratings to national scale ratings
may no longer be adequately serving one of its intended purposes,
which is to provide greater credit differentiation among issuers
in Brazil than is possible on the global rating scale. However, if
Moody's NSR methodology is revised as proposed in the Request for
Comment (RFC) entitled "Mapping National Scale Ratings from Global
Scale Ratings" published on January 20, the resulting new
Brazilian scale would likely imply that many Brazil global scale
ratings would be remapped to higher ratings on the national scale.

While the RFC included a new proposed national scale map for
Brazil, given the aforementioned ratings changes, the new map
design for Brazil will likely differ from the specific map
proposal included in the RFC. In addition to the proposed
Brazilian map, the RFC comprised a proposed update to our
methodology for mapping national scale ratings from global scale
ratings, including guidelines for the design of new national scale
maps and changes to existing maps, as well as proposed new
national scale maps for each of the other countries in which we
currently offer NSRs. The comment period for this RFC closed on
February 22.

WHAT COULD CHANGE THE RATING UP/DOWN

In light of the current rating action and the negative outlooks,
an upgrade of the ratings is unlikely in the near term.

Further deterioration in the respective sovereign or sub-
sovereign's credit quality could exert downward pressure on these
infrastructure issuers. A downgrade would be triggered if Moody's
perceives a further deterioration in the regulatory frameworks
under which these companies operate. A sustained deterioration in
the relevant credit metrics of the issuer could also exert
downward rating pressure. Political interference in the normal
course of business of these issuers could also be considered a
trigger for a downgrade.


EMBRAER OVERSEES: Moody's Cuts Sr. Unsecured Notes Ratings to Ba1
-----------------------------------------------------------------
Moody's Investors Service (Moody's) has downgraded to Ba1 from
Baa3 the foreign currency senior unsecured notes issued by Embraer
S.A., Embraer Oversees Limited and Embraer Netherlands Finance BV.
At the same time, Moody's withdrawn Embraer S.A.'s Baa3 domestic
currency issuer ratings and assigned a Ba1 corporate family rating
to the company. The outlook for all ratings remains negative.

The rating action follows Moody's downgrade on February 24, 2016
of Brazil's government bond rating to Ba2 from Baa3. In addition
to downgrading Brazil's government bond rating, Moody's also
downgraded the country's senior unsecured debt rating to Ba2 from
Baa3, and the senior unsecured shelf rating to (P)Ba2 from
(P)Baa3. The outlook was changed to negative. The rating agency
also changed Brazil's country ceiling that went to Ba1 from Baa2.
This rating action concludes the review for downgrade initiated on
December 09, 2015. Please see " Moody's downgrades Brazil's issuer
and bond ratings to Ba2 with a negative outlook" on moodys.com for
more information.

Ratings downgraded:

Issuer: Embraer S.A.

-- $US 500 million senior unsecured notes due 2022: to Ba1 from
    Baa3 (foreign currency)

-- Embraer Overseas Limited

-- $US 23.6 million Backed senior unsecured notes due 2017: to
    Ba1 from Baa3 (foreign currency)

-- $US162.8 million Backed senior unsecured notes due 2020: to
    Ba1 from Baa3 (foreign currency)

-- $US540.5 million Backed senior unsecured notes due 2023: to
    Ba1 from Baa3 (foreign currency)

Embraer Netherlands Finance BV

-- $US1,000 million Backed senior unsecured notes due 2025: to
    Ba1 from Baa3 (foreign currency)

Rating withdrawn:

Issuer: Embraer S.A.

-- Issuer Rating: Baa3

Rating assigned:

Issuer: Embraer S.A.

-- Corporate Family Rating: Ba1

The outlook on all ratings is negative.

RATINGS RATIONALE

"The downgrade of Embraer's ratings to Ba1 was prompted by Moody's
decision to downgrade Brazil's government bond rating to Ba2 from
Baa3." Explained Cristiane Spercel, a Moody's Vice President -
Senior Analyst.

"Embraer's Ba1 rating now ranks one-notch above Brazil's
government bond rating of Ba2, which is granted only on an
exceptional basis for issuers that are fundamentally stronger than
the sovereign. In the case of Embraer, this is evidenced by its
significant revenue diversification, strong liquidity and limited
exposure to devaluation of local currency through revenues
generated outside of Brazil, which are sufficient to service its
near-term debt servicing obligations. These factors outweigh
Embraer's close links with the Brazilian economy and the local
government," added Cristiane.

Embraer's rating is constrained by Brazil's sovereign rating given
that 50% of the company's fixed assets are domiciled in this
country, and its internal production supports 72% of the
consolidated revenues. As such, Embraer is directly and indirectly
dependent on the country's economic deterioration and factors such
as interest rates, inflation, along with tax payments and
regulation at home. The company also has an exposure to the
Brazilian Federal government (6% to 10% of the company's revenues)
that is subject to budget constraints and fiscal availability. The
company has been already experiencing delays in the recovery of
receivables and margin losses in defense and security with the
Brazilian Air Force since 2014. Additionally, Embraer has
historically relied on funding from Brazilian public banks to
support exports to clients and its investment plan, which
currently represent 15% of its total liabilities outstanding.
Mitigating the country risk is Embraer's natural hedge position as
an exporter, with close to 90% of revenues from clients outside
Brazil.

The Ba1 rating is supported by Embraer's leading position in the
global market of regional jets, with a solid track record of
control over operating costs and inventory management, which
sustain healthy operating cash flows and strong financial metrics.
Moreover, the company benefits from a positive industry outlook
for the airspace and defense businesses and a healthy firm order
backlog that supports almost 4 years of future revenues.

On the other hand, the cyclical nature of the aviation business
and its growing competitive pressures also constrain Embraer's
rating, because it requires significant investments on an ongoing
basis to keep up with evolving customer needs. Working capital
pressures and large capital expenditures will remain high through
2018, potentially reducing its liquidity cushion and increasing
refinancing pressure over the next two years. In the absence of
ample financing sourcing within the country, Embraer would be much
more dependent on external banking financing and capital markets
for liability management.

Nevertheless, we still see Embraer's strong liquidity cushion  as
an important factor underpinning its Ba1 rating, given the
aforementioned working capital pressures and large capital
expenditures through 2018. The company has consistently maintained
a high level of cash balances approximating the level of its
outstanding debt. At the end of September 2015, the company's
cash-on-hand and short-term investments of BRL9.8 billion ($US 2.5
million) approximated 70% of total adjusted debt and 2.5 times
debt maturities through 2017. In June 2015, the company executed
an anticipated liability management strategy with the issue of 10-
year $US 1.0 billion senior unsecured notes, and effective
interest rate at 5.05% per year. As such, Debt to EBITDA leverage
has spiked to 6.7x, but we expect it return to more normalized
levels of 3.0x - 3.5x in 2016 and 2017.

The negative rating outlook factors our expectation that Embraer's
free cash flow (cash flow from operations after capex and dividend
payments) will remain negative at least until 2018 due to the
ongoing investments for commercial jet development coupled with
some pricing pressures. Additionally, Embraer's working capital
requirements may increase in the near term with challenges on its
domestic exposure in the defense and security business, along with
potential tax increases and/or reduction of fiscal incentives on
production arising from the country's economic distress.

The rating could be further downgraded in view of Brazil's
sovereign rating deterioration or a deterioration in Embraer's
liquidity position, for example by an increase to larger net debt
position, without expectation of improvement in the near term. The
rating would also be subject to negative pressure in view of
weaker operating performance, such that adjusted Debt to EBITDA
remains above 4.0 times (6.7 times in LTM 3Q15) and EBIT to
Interest is below 2.0 times (2.2 times in LTM 3Q15). Industrial
inefficiencies in production, insufficient mitigation of foreign
exchange risk and/or any adverse development(s) with respect to
the ongoing investigation by the SEC into possible violations of
the Foreign Corrupt Practices Act, could also pressure the rating.

A higher rating is unlikely at this time, but it could be
considered if Embraer manages to sustain its leading position in
the competitive regional jets market while maintaining healthy
revenue growth and operating profit margins, so that its adjusted
Debt to EBITDA is less than 3.0 times and its EBIT to Interest is
above 3.0 times, along with strong positive free cash flow
generation (BRL300 million negative in LTM3Q15, after dividend
payments). Maintenance of a strong cash cushion to support near
term debt service and working capital needs also remains an
important factor for any prospective rating improvement. A higher
rating would be also dependent on Brazil's sovereign ratings, so
that the difference between the two ratings is not larger than one
notch.

Headquartered in Sao Jose dos Campos, Brazil, Embraer is the
leading manufacturer of regional jet airplanes (generally, up to
120 seats), with a growing defense & security segment and a line
of business jets including new types for the mid-light and mid-
size segments. In the last twelve months that ended September 30,
2015, Embraer generated approximately BRL17.6 billion ($US 5.9
billion) in net revenues and BRL2.1 billion ($US 700 million) in
EBITDA. Founded in 1969 by the Brazilian federal government, the
company was privatized in 1994 and transformed into a publicly-
held corporation, subject to the provisions of Brazilian Corporate
Law.


FIBRIA CELULOSE: Moody's Assigns Ba1 Global Scale Rating
--------------------------------------------------------
Moody's America Latina has withdrawn Fibria Celulose S.A.'s issuer
rating and assigned a Ba1 global scale and Aa1.br national scale
corporate family rating. The outlook for all ratings is negative.

The rating action follows Moody's downgrade on February 24, 2016
of Brazil's government bond rating to Ba2 from Baa3. In addition
to downgrading Brazil's government bond rating, Moody's also
downgraded the country's senior unsecured debt rating to Ba2 from
Baa3, and the senior unsecured shelf rating to (P)Ba2 from
(P)Baa3. The outlook was changed to negative. The rating agency
also changed Brazil's country ceiling that went to Ba1 from Baa2.
This rating action concludes the review for downgrade initiated on
December 09, 2015. Please see " Moody's downgrades Brazil's issuer
and bond ratings to Ba2 with a negative outlook" on moodys.com for
more information.

Ratings downgraded as follows:

Assigned:

Issuer: Fibria Celulose S.A.

   Corporate Family Rating: Ba1 (global scale) / Aa1.br
   (national scale)

Withdrawals:

   Issuer: Fibria Celulose S.A.

    Issuer rating: Baa3 (global scale) / Aaa.br (national scale)

The outlook for all ratings is negative.

RATINGS RATIONALE

Moody's said, "Fibria's downgrade follows Brazil sovereign rating
downgrade to Ba2 from Baa3. Fibria's Ba1 rating still ranks one
notch above Brazil's government bond rating of Ba2, which is
granted only on an exceptional basis for issuers with fundamentals
that are stronger than the sovereign. Despite Fibria's asset
concentration in Brazil, we believe that it has a strong financial
profile and good revenue diversification outside Brazil, which
limits the impact of weak domestic economic fundamentals on the
company's creditworthiness. This is evidenced by the resilient
nature of Fibria's cash flows and financial flexibility, which
allow it to withstand Brazil's deteriorating economic and fiscal
condition. The rating is unlikely to go more than one notch above
the sovereign's government bond rating, and it continues to be
constrained by the company's low product diversity given its full
exposure to hardwood pulp and the cyclical nature of its pulp
business."

The Ba1 ratings also reflect Fibria's leading position as the
largest producer of market pulp in the world, the existence of
long-term supply agreements that support stable sales volume with
good geographic diversification, the company's conservative
approach to liquidity and risk management and the benefit from the
ownership by and expected support from Votorantim S.A --  Also,
our view of Fibria's strong ownership considers the fact that
BNDES is currently its second largest individual shareholder
through its subsidiary BNDES Participacoes S.A. holding 29.1% of
its voting and total shares, and a major lender to the company.

Furthermore, the expansion project at Tres Lagoas production unit
to add 1.75 million tonnes of hardwood capacity for an estimated
$US2.2 billion could pressure credit metrics in the near term,
however we believe Fibria's peak leverage will not surpass 3.5x
(net debt to EBITDA), as established in the company's financial
policies and shareholders agreement, and that the company will be
able to return leverage to pre-expansion levels within a
relatively short time frame, helped by the current stable outlook
for hardwood pulp prices and a depreciated local currency on
Brazil. Furthermore, liquidity risks will be mitigated by the
company's strong free cash flow generation in the near term and by
funding sources already raised.

An upgrade on Fibria's rating would depend on an upgrade of
Brazil's government bond rating and on the maintenance of strong
credit metrics and market positioning. A gap of more than one
notch with Brazil's Ba2 government bond rating is unlikely. The
more cyclical the pulp industry is also viewed as a rating
constraint. The ratings could be upgraded if Fibria's leverage (as
measured by Total Adjusted Debt to EBITDA) is sustained below 3x
and interest coverage (as measured by Adjusted EBITDA to Interest
Expense) remains above 5x. Finally, an upgrade would require the
maintenance of a solid liquidity profile and positive free cash
flow generation.

The ratings could be downgraded if Fibria's major expansion
project in Tres Lagoas jeopardizes its credit metrics for an
extended period of time. Quantitatively, this would be the case if
Fibria's leverage remains above 4x of if interest coverage
declines to below 3.5x without prospects for improving.
Furthermore, consistently negative free cash flow generation or a
deterioration in the company's liquidity profile could result in a
downgrade of the ratings.

Fibria Celulose S.A. is the world's largest producer of market
pulp with annual production capacity of 5.3 million metric tons.
In FY 2015, Fibria reported consolidated net revenues of BRL 10
billion, coming mostly from Europe (42% of total sales volumes in
the period), Asia (25%), North America (25%) and Latin America
(8%).

POTENTIAL MAPPING RECALIBRATION FROM GLOBAL SCALE TO NATIONAL
SCALE RATINGS

With the recent downgrade of the government of Brazil on the
global rating scale and other issuers whose risk profiles are
affected by related credit considerations, the distribution of
national scale ratings (NSRs) among issuers in Brazil has become
compressed, particularly at the Aa2.br level. As a result, the
current mapping of global scale ratings to national scale ratings
may no longer be adequately serving one of its intended purposes,
which is to provide greater credit differentiation among issuers
in Brazil than is possible on the global rating scale. However, if
Moody's NSR methodology is revised as proposed in the Request for
Comment (RFC) entitled "Mapping National Scale Ratings from Global
Scale Ratings" published on January 20, the resulting new
Brazilian scale would likely imply that many Brazil global scale
ratings would be remapped to higher ratings on the national scale.

While the RFC included a new proposed national scale map for
Brazil, given the aforementioned ratings changes, the new map
design for Brazil will likely differ from the specific map
proposal included in the RFC. In addition to the proposed
Brazilian map, the RFC comprised a proposed update to our
methodology for mapping national scale ratings from global scale
ratings, including guidelines for the design of new national scale
maps and changes to existing maps, as well as proposed new
national scale maps for each of the other countries in which we
currently offer NSRs. The comment period for this RFC closed on
February 22.


FIBRIA OVERSEAS: Moody's Cuts Sr. Unsecured Notes Due 2024 to Ba1
-----------------------------------------------------------------
Moody's Investors Service has downgraded to Ba1 from Baa3 the
ratings of the notes issued by Fibria Overseas Finance Ltd and
guaranteed by Fibria Celulose S.A --  At the same time, Moody's
America Latina has withdrawn Fibria Celulose S.A. ("Fibria")'s
issuer rating and assigned a Ba1 global scale and Aa1.br national
scale corporate family rating. The outlook for all ratings is
negative.

The rating action follows Moody's downgrade on February 24, 2016
of Brazil's government bond rating to Ba2 from Baa3. In addition
to downgrading Brazil's government bond rating, Moody's also
downgraded the country's senior unsecured debt rating to Ba2 from
Baa3, and the senior unsecured shelf rating to (P)Ba2 from
(P)Baa3. The outlook was changed to negative. The rating agency
also changed Brazil's country ceiling that went to Ba1 from Baa2.
This rating action concludes the review for downgrade initiated on
December 09, 2015. Please see " Moody's downgrades Brazil's issuer
and bond ratings to Ba2 with a negative outlook" on moodys.com for
more information.

Ratings downgraded as follows:

Issuer: Fibria Overseas Finance Limited

  $US600 million in senior unsecured notes due 2024: to Ba1
  from Baa3

The outlook for all ratings is negative.

RATINGS RATIONALE

Fibria's downgrade follows Brazil sovereign rating downgrade to
Ba2 from Baa3. Fibria's Ba1 rating still ranks one notch above
Brazil's government bond rating of Ba2, which is granted only on
an exceptional basis for issuers with fundamentals that are
stronger than the sovereign. Despite Fibria's asset concentration
in Brazil, Moody's believes that it has a strong financial profile
and good revenue diversification outside Brazil, which limits the
impact of weak domestic economic fundamentals on the company's
creditworthiness. This is evidenced by the resilient nature of
Fibria's cash flows and financial flexibility, which allow it to
withstand Brazil's deteriorating economic and fiscal condition.
The rating is unlikely to go more than one notch above the
sovereign's government bond rating, and it continues to be
constrained by the company's low product diversity given its full
exposure to hardwood pulp and the cyclical nature of its pulp
business.

The Ba1 ratings also reflect Fibria's leading position as the
largest producer of market pulp in the world, the existence of
long-term supply agreements that support stable sales volume with
good geographic diversification, the company's conservative
approach to liquidity and risk management and the benefit from the
ownership by and expected support from Votorantim S.A --  Also,
our view of Fibria's strong ownership considers the fact that
BNDES is currently its second largest individual shareholder
through its subsidiary BNDES Participacoes S.A. holding 29.1% of
its voting and total shares, and a major lender to the company.

Furthermore, the expansion project at Tres Lagoas production unit
to add 1.75 million tonnes of hardwood capacity for an estimated
$US2.2 billion could pressure credit metrics in the near term,
however we believe Fibria's peak leverage will not surpass 3.5x
(net debt to EBITDA), as established in the company's financial
policies and shareholders agreement, and that the company will be
able to return leverage to pre-expansion levels within a
relatively short time frame, helped by the current stable outlook
for hardwood pulp prices and a depreciated local currency on
Brazil. Furthermore, liquidity risks will be mitigated by the
company's strong free cash flow generation in the near term and by
funding sources already raised.

An upgrade on Fibria's rating would depend on an upgrade of
Brazil's government bond rating and on the maintenance of strong
credit metrics and market positioning. A gap of more than one
notch with Brazil's Ba2 government bond rating is unlikely. The
more cyclical the pulp industry is also viewed as a rating
constraint. The ratings could be upgraded if Fibria's leverage (as
measured by Total Adjusted Debt to EBITDA) is sustained below 3x
and interest coverage (as measured by Adjusted EBITDA to Interest
Expense) remains above 5x. Finally, an upgrade would require the
maintenance of a solid liquidity profile and positive free cash
flow generation.

The ratings could be downgraded if Fibria's major expansion
project in Tres Lagoas jeopardizes its credit metrics for an
extended period of time. Quantitatively, this would be the case if
Fibria's leverage remains above 4x of if interest coverage
declines to below 3.5x without prospects for improving.
Furthermore, consistently negative free cash flow generation or a
deterioration in the company's liquidity profile could result in a
downgrade of the ratings.

Fibria Celulose S.A. is the world's largest producer of market
pulp with annual production capacity of 5.3 million metric tons.
In FY 2015, Fibria reported consolidated net revenues of BRL 10
billion, coming mostly from Europe (42% of total sales volumes in
the period), Asia (25%), North America (25%) and Latin America
(8%).


FLEURY SA: Moody's Cuts Corporate Family Rating to Ba2/Aa2.br
-------------------------------------------------------------
Moody's America Latina downgraded Fleury S.A.'s corporate family
rating and all related ratings to Ba2 (global scale)/Aa2.br
(national scale) from Ba1/Aa1.br. The outlook for the ratings is
negative.

The rating action follows Moody's downgrade on February 24, 2016
of Brazil's government bond rating to Ba2 from Baa3. In addition
to downgrading Brazil's government bond rating, Moody's also
downgraded the country's senior unsecured debt rating to Ba2 from
Baa3, and the senior unsecured shelf rating to (P)Ba2 from
(P)Baa3. The outlook was changed to negative. The rating agency
also changed Brazil's country ceiling that went to Ba1 from Baa2.

This rating action concludes the review for downgrade of Brazil's
ratings initiated on December, 2015. Please see " Moody's
downgrades Brazil's issuer and bond ratings to Ba2 with a negative
outlook" on moodys.com for more information.

Ratings downgraded:

Issuer: Fleury S.A.

-- Corporate family rating: to Ba2/Aa2.br from Ba1/Aa1.br

-- BRL 450 million senior unsecured debentures due 2016 and 2018:
    to Ba2/Aa2.br from Ba1/Aa1.br

-- BRL 500 million senior unsecured debentures due 2020: to
    Ba2/Aa2.br from Ba1/Aa1.br

The outlook for all ratings is negative.

RATING RATIONALE

The downgrade follows the downgrade of Brazil's sovereign ratings
to Ba2 from Baa3, with a negative outlook. Fleury generates 100%
of its revenues in the local market and, although it operates in a
resilient segment, one of its main growth drivers is the creation
of formal jobs, which has deteriorated significantly in the last
year, and is expected to remain weak at least until the end of
2016. In our view, rising unemployment and inflation, coupled with
reduced additions to health plans could pressure Fleury's
operating performance. Accordingly, Fleury's ratings are unlikely
to stand above Brazil's sovereign ratings.

Fleury's Ba2 ratings continue to be supported by the company's
strong and well recognized brand, its market positioning in
Brazil, focused on the more resilient higher income level
population, and the positive long-term prospects for the Brazilian
health care industry, despite the expected deterioration in
operating environment as a consequence of the Brazilian recession.
The ratings incorporate the improved diversification in terms of
branding, consumer's profile and geographic footprint derived from
Fleury's 27 acquisitions between 2002 and 2012 and the company's
adequate credit metrics and liquidity profile.

The ratings are constrained by the company's small size compared
to global peers as well as the fragmented nature of the industry,
which provides room for additional M&A activity.

With the recent downgrade of the government of Brazil on the
global rating scale and other issuers whose risk profiles are
affected by related credit considerations, the distribution of
national scale ratings (NSRs) among issuers in Brazil has become
compressed, particularly at the Aa2.br level. As a result, the
current mapping of global scale ratings to national scale ratings
may no longer be adequately serving one of its intended purposes,
which is to provide greater credit differentiation among issuers
in Brazil than is possible on the global rating scale. However, if
Moody's NSR methodology is revised as proposed in the Request for
Comment (RFC) entitled "Mapping National Scale Ratings from Global
Scale Ratings" published on January 20, the resulting new
Brazilian scale would likely imply that many Brazil global scale
ratings would be remapped to higher ratings on the national scale.

While the RFC included a new proposed national scale map for
Brazil, given the aforementioned ratings changes, the new map
design for Brazil will likely differ from the specific map
proposal included in the RFC. In addition to the proposed
Brazilian map, the RFC comprised a proposed update to our
methodology for mapping national scale ratings from global scale
ratings, including guidelines for the design of new national scale
maps and changes to existing maps, as well as proposed new
national scale maps for each of the other countries in which we
currently offer NSRs. The comment period for this RFC closed on
February 22.

The negative outlook on Fleury's ratings mirrors the negative
outlook for Brazil's sovereign ratings.

Although unlikely in the short term, an upgrade would depend on an
upgrade of Brazil's sovereign rating. Positive pressure on the
ratings would also require Fleury to continue generating
consistent organic growth, while pursuing its expansion strategy,
and to maintain stable profitability levels even during the
foreseen market deterioration.

The ratings could be lowered if the company fails to deliver
organic growth or to maintain EBITDA margins near its current
level. The ratings could also come under pressure if leverage
ratio remains above 3.5x, if free cash flow remains negative on a
consistent basis or if liquidity deteriorates. Additional negative
actions on Brazil's sovereign ratings would also trigger a
downgrade of Fleury's ratings.

Founded in 1926, Fleury is a major provider of high quality
diagnostic medicine in Brazil through its Patient Service Centers
(83% of gross revenues), operations in Hospitals (14% of gross
revenues) and others (3% of gross revenues) business segments. The
group has a diversified portfolio of brands that envisages
different social classes in six Brazilian states and Distrito
Federal. For the last twelve months ended in September 2015,
Fleury posted revenues of BRL 1.8 billion (approximately $US624
million converted by the average exchange rate) and adjusted
EBITDA of BRL 528 million (28.6% adjusted EBITDA margin).


MGI-MINAS GERAIS: Moody's Cuts Sr. Debenture Ratings to 'Ba3(sf)'
-----------------------------------------------------------------
Moody's America Latina has downgraded the ratings of the third
issuance of senior debentures backed by re-performing ICMS taxes
issued by MGI- Minas Gerais Participacoes (MGI) to Ba3 (sf) from
Ba1 (sf) on the global scale and to A2.br (sf) from Aa2.br (sf) on
the national scale.

The rating action follows Moody's decision to downgrade the rating
of the State of Minas Gerais to Ba3 (negative outlook) from Ba1
(under review for downgrade), following Moody's February 24, 2016
rating action in which Brazil's government bond rating was
downgraded to Ba2 (negative outlook) from Baa3 (under review for
downgrade).

Issuer: MGI - Minas Gerais Participacoes S.A. third issuance of
debentures backed by re-performing ICMS taxes

-- Senior Debenture, ratings downgraded to Ba3 (sf) from Ba1 (sf)
    (global scale, local currency) and to A2.br (sf) from Aa2.br
    (sf) (national scale).

The senior debentures are backed by the right to receive 60% of
collections resulting from monthly payments of renegotiated ICMS
taxes (Imposto sobre Operacoes Relativas Ö Circulacao de
Mercadorias e Prestacao Serviáos de Transporte Interestadual e
Intermunicipal e de Comunicacao) originally owed to the State of
Minas Gerais.

MGI is a public limited company almost wholly owned (99.8%) by the
State of Minas Gerais (Ba3, negative outlook).

RATINGS RATIONALE

The rating of the State of Minas Gerais was downgraded as a result
of the ongoing deterioration of Brazil's economy and of the
federal government's fiscal position that have a direct impact on
the operating environment of the State, as it relates to the
Government of Brazil's government bond rating being downgraded to
Ba2, negative outlook.

Although MGI is the sole obligor under the debentures and
investors have no recourse to the State of Minas Gerais under the
transaction, MGI and the State of Minas Gerais are closely related
given the extent of the state's ownership of MGI and the portion
of the transaction's subordinated debt it holds.

The transaction has performed within expectations, with an average
debt service coverage ratio (DSCR) of 2.41x in 2015, above the
minimum requirement of 1.8x. The asset coverage ratio as of
December 2015 was 304%, higher than the 200% trigger level.

FACTORS THAT WOULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATING:

Factors that would lead to a downgrade include a deterioration of
the collateral performance and a downgrade of the rating of the
State of Minas Gerais.

POTENTIAL MAPPING RECALIBRATION FROM GLOBAL SCALE TO NATIONAL
SCALE RATINGS

With the recent downgrade of the government of Brazil on the
global rating scale and other issuers whose risk profiles are
affected by related credit considerations, the distribution of
national scale ratings (NSRs) among issuers in Brazil has become
compressed, particularly at the Aa2.br level. As a result, the
current mapping of global scale ratings to national scale ratings
may no longer be adequately serving one of its intended purposes,
which is to provide greater credit differentiation among issuers
in Brazil than is possible on the global rating scale. However, if
Moody's NSR methodology is revised as proposed in the Request for
Comment (RFC) entitled "Mapping National Scale Ratings from Global
Scale Ratings" published on January 20, the resulting new
Brazilian scale would likely imply that many Brazil global scale
ratings would be remapped to higher ratings on the national scale.

While the RFC included a new proposed national scale map for
Brazil, given the aforementioned ratings changes, the new map
design for Brazil will likely differ from the specific map
proposal included in the RFC. In addition to the proposed
Brazilian map, the RFC comprised a proposed update to our
methodology for mapping national scale ratings from global scale
ratings, including guidelines for the design of new national scale
maps and changes to existing maps, as well as proposed new
national scale maps for each of the other countries in which we
currently offer NSRs. The comment period for this RFC closed on
February 22.


ODEBRECHT ENGENHARIA: Moody's Assigns Ba2 Corporate Family Rating
-----------------------------------------------------------------
Moody's America Latina (Moody's) has withdrawn the Aa1.br national
scale issuer rating and assigned a Aa2.br national scale corporate
family rating to Odebrecht Engenharia e Construcao S.A. (OEC). At
the same time, Moody's Investors Service withdraw OEC's Baa3 local
currency issuer rating and assigned a Ba2 Corporate Family rating
to this company. The outlook for all ratings is negative. This
rating action concludes the review for downgrade initiated on
December 10, 2015.

The rating action follows Moody's downgrade on February 24, 2016
of Brazil's government bond rating to Ba2 from Baa3. In addition
to downgrading Brazil's government bond rating, Moody's also
downgraded the country's senior unsecured debt rating to Ba2 from
Baa3, and the senior unsecured shelf rating to (P)Ba2 from
(P)Baa3. The outlook was changed to negative. The rating agency
also changed Brazil's country ceiling that went to Ba1 from Baa2.
This rating action concludes the review for downgrade initiated on
December 09, 2015. Please see " Moody's downgrades Brazil's issuer
and bond ratings to Ba2 with a negative outlook" on moodys.com for
more information.

Ratings withdrawn:

Issuer: Odebrecht Engenharia e Construcao S.A. (OEC), Brazil

-- Issuer Rating: Aa1.br (National Scale Rating)

Ratings assigned:

Issuer: Odebrecht Engenharia e Construcao S.A. (OEC), Brazil

-- Corporate Family Rating: Aa2.br (National Scale Rating)

The outlook for all ratings is negative.

For further information, please see the ratings tab on the
issuer/entity page for the respective issuer on www.moodys.com.br

RATINGS RATIONALE

"The downgrade of OEC's ratings to Ba2 was prompted by Moody's
decision to downgrade Brazil's government bond rating to Ba2 from
Baa3." Explained Cristiane Spercel, a Moody's Vice President -
Senior Analyst.

OEC's Ba2 rating remains supported by its strong debt protection
metrics and liquidity cushion. The rating also incorporates the
company's position as the largest construction company in Latin
America, benefiting from the group's strong expertise in the
engineering and construction businesses. It also reflects the
company's solid track record of execution of complex projects and
large contract backlog, which provides adequate revenue visibility
for the next two to three years.

On the other hand, the company's considerable exposure to
countries with high political risk and economic volatility,
limited ring fencing provisions to restrict cash transfers within
the group and still evolving corporate governance practices
constrain the rating.

OEC's rating is constrained by Brazil's sovereign rating because
the company's revenue diversification and limited exposure to
devaluation of local currency may not fully insulate it from the
economic deterioration and political instability in the country.
Although OEC draws 83% of its revenues outside Brazil, the company
is directly and indirectly dependent on factors such as interest
rates, exchange rates, inflation, along with tax payments and
regulations at home. The company is also exposed to a
deterioration in the credit quality of its parent company
Odebrecht S.A. (unrated) that draws approximately 50% of its
consolidated revenues from Brazil.

The negative outlook reflects the challenges ahead of OEC to
maintain the company's large size and scale, and strong credit
metrics in the context of the deteriorating business environment
in Brazil, coupled with the uncertainties related to potential
fines and overall outcomes in the ongoing corruption
investigations in the country.

The rating could be further downgraded in view of Brazil's
sovereign rating deterioration or due to a major deterioration in
OEC's liquidity position, for example by a larger than expected
dividend distribution or contingent payment, that significantly
reduces its available cash reserves to cover upcoming debt
maturities, off-balance obligations and working capital needs. The
rating would also be subject to negative pressure in face of a
prolonged period of weaker operating performance, backlog
reduction or persistent delays in collection of receivables.
Quantitatively, rating's pressure increases should the adjusted
Debt to EBITDA ratio increases above 4.5 times (3.0 times as of
September 30, 2015) or the EBIT to Interest ratio moves below 2.25
times (10.7 times as of September 30, 2015).

An upgrade of OEC rating is unlike at this time, but outlook
stabilization will be considered if OEC is able to improve or, at
least, maintain its current credit metrics and healthy liquidity
profile throughout the anticipated challenging business
environment in 2016 and 2017. Upward ratings pressure also depends
on further diversification of revenues to the extent that the
total exposure to high sovereign risk countries represents less
than 25% (25% as of September 30, 2015) of its backlog and further
improvement of its corporate governance practices. An upgrade of
OEC's ratings would also depend on an upgrade of Brazil's
government bond rating.

Moody's National Scale Credit Ratings (NSRs) are intended as
relative measures of creditworthiness among debt issues and
issuers within a country, enabling market participants to better
differentiate relative risks. NSRs differ from Moody's global
scale credit ratings in that they are not globally comparable with
the full universe of Moody's rated entities, but only with NSRs
for other rated debt issues and issuers within the same country.
NSRs are designated by a ".nn" country modifier signifying the
relevant country, as in ".za" for South Africa. For further
information on Moody's approach to national scale credit ratings,
please refer to Moody's Credit rating Methodology published in
June 2014 entitled "Mapping Moody's National Scale Ratings to
Global Scale Ratings".

Odebrecht's Engenharia e Construcao S.A. (OEC), is the largest
engineering and construction company in Latin America, with
BRL43.5 billion ($US 14.4 billion) in net revenues during the last
twelve months ended 30 September 2015. The company's project
backlog of BRL114 billion ($US 30 billion) is diversified into 176
contracts comprising large-scale construction projects in the
transportation segment, energy and sewage infrastructures,
buildings and industrial facilities, of which 22% is located in
Brazil, 59% in other Latina American countries and 18% in Africa.
As of 30 September 2015, the company's outstanding cash position
was BRL11.6 billion ($US 2.9 billion) for a total gross debt of
BRL14.2 billion ($US 3.5 billion) that includes its off balance
debt guarantees

OEC is a subsidiary of Odebrecht S.A. (unrated), a family-owned
investment holding company for one of the largest non-financial
conglomerates in Brazil that controls Braskem S.A., the largest
chemical company in Latin America, along with other investments in
the oil & gas, energy sectors, toll roads, water sewage
concessions and real estate. Odebrecht consolidated net revenues
reached BRL104 billion ($US 38.6 billion) in the last twelve
months ended 30 June 2015, of which 36% generated was generated by
OEC, 43% by Braskem, and 21% by other subsidiaries. As of June
2015, the group's consolidated cash position was BRL25.4 billion
($US 8.1 billion) for a total reported debt of BRL98 billion ($US
31.5 billion).

POTENTIAL MAPPING RECALIBRATION FROM GLOBAL SCALE TO NATIONAL
SCALE RATINGS

With the recent downgrade of the government of Brazil on the
global rating scale and other issuers whose risk profiles are
affected by related credit considerations, the distribution of
national scale ratings (NSRs) among issuers in Brazil has become
compressed, particularly at the Aa2.br level. As a result, the
current mapping of global scale ratings to national scale ratings
may no longer be adequately serving one of its intended purposes,
which is to provide greater credit differentiation among issuers
in Brazil than is possible on the global rating scale. However, if
Moody's NSR methodology is revised as proposed in the Request for
Comment (RFC) entitled "Mapping National Scale Ratings from Global
Scale Ratings" published on January 20, the resulting new
Brazilian scale would likely imply that many Brazil global scale
ratings would be remapped to higher ratings on the national scale.

While the RFC included a new proposed national scale map for
Brazil, given the aforementioned ratings changes, the new map
design for Brazil will likely differ from the specific map
proposal included in the RFC. In addition to the proposed
Brazilian map, the RFC comprised a proposed update to our
methodology for mapping national scale ratings from global scale
ratings, including guidelines for the design of new national scale
maps and changes to existing maps, as well as proposed new
national scale maps for each of the other countries in which we
currently offer NSRs. The comment period for this RFC closed on
February 22.


ODEBRECHT FINANCE: Moody's Cuts Unsecured Notes Rating to 'Ba2'
---------------------------------------------------------------
Moody's Investors Service downgraded to Ba2 from Baa3 the foreign
currency senior unsecured notes issued by Odebrecht Finance Ltd.
(OFL) and guaranteed by Odebrecht Engenharia e Construcao S.A.
(OEC). At the same time, Moody's has withdrawn OEC's Baa3 local
currency issuer rating and assigned a Ba2 Corporate Family Rating
to the company. The outlook for all ratings is negative. This
rating action concludes the review for downgrade initiated on
December 10, 2015

The rating action follows Moody's downgrade on February 24, 2016
of Brazil's government bond rating to Ba2 from Baa3. In addition
to downgrading Brazil's government bond rating, Moody's also
downgraded the country's senior unsecured debt rating to Ba2 from
Baa3, and the senior unsecured shelf rating to (P)Ba2 from
(P)Baa3. The outlook was changed to negative. The rating agency
also changed Brazil's country ceiling that went to Ba1 from Baa2.
This rating action concludes the review for downgrade initiated on
December 9, 2015.

Ratings downgraded:

Issuer: Odebrecht Finance Limited (OFL), Cayman Islands

-- BRL500 million Backed senior unsecured guaranteed notes due
    2018: downgraded to Ba2 from Baa3 foreign currency rating

-- $US 72.7 million Backed senior unsecured guaranteed notes due
    2020: downgraded to Ba2 from Baa3 foreign currency rating

-- $US 143 million Backed senior unsecured guaranteed notes due
    2022: downgraded to Ba2 from Baa3 foreign currency rating

-- $US 101.6 million Backed senior unsecured guaranteed notes due
    2023: downgraded to Ba2 from Baa3 foreign currency rating

-- $US 518.6 million Backed senior unsecured guaranteed notes due
    2025: downgraded to Ba2 from Baa3 foreign currency rating

-- $US 500 million Backed senior unsecured guaranteed notes due
    2029: downgraded to Ba2 from Baa3 foreign currency rating

-- $US 850 million Backed senior unsecured guaranteed notes due
    2042: downgraded to Ba2 from Baa3 foreign currency rating

-- $US 750 million Backed senior unsecured guaranteed perpetual
    notes: downgraded to Ba2 from Baa3 foreign currency rating

Rating withdrawn:

Issuer: Odebrecht Engenharia e Construcao S.A. (OEC), Brazil

-- Issuer Rating: Baa3 (global scale)

Rating assigned:

Issuer: Odebrecht Engenharia e Construcao S.A. (OEC), Brazil

-- Corporate Family Rating: Ba2 (global scale)

The outlook for all ratings is negative.

RATINGS RATIONALE

"The downgrade of OEC's ratings to Ba2 was prompted by Moody's
decision to downgrade Brazil's government bond rating to Ba2 from
Baa3." Explained Cristiane Spercel, a Moody's Vice President -
Senior Analyst.

OEC's Ba2 rating remains supported by its strong debt protection
metrics and liquidity cushion. The rating also incorporates the
company's position as the largest construction company in Latin
America, benefiting from the group's strong expertise in the
engineering and construction businesses. It also reflects the
company's solid track record of execution of complex projects and
large contract backlog, which provides adequate revenue visibility
for the next two to three years.

On the other hand, the company's considerable exposure to
countries with high political risk and economic volatility,
limited ring fencing provisions to restrict cash transfers within
the group and still evolving corporate governance practices
constrain the rating.

OEC's rating is constrained by Brazil's sovereign rating because
the company's revenue diversification and limited exposure to
devaluation of local currency may not fully insulate it from the
economic deterioration and political instability in the country.
Although OEC draws 83% of its revenues outside Brazil, the company
is directly and indirectly dependent on factors such as interest
rates, exchange rates, inflation, along with tax payments and
regulations at home. The company is also exposed to a
deterioration in the credit quality of its parent company
Odebrecht S.A. (unrated) that draws approximately 50% of its
consolidated revenues from Brazil.

The negative outlook reflects the challenges ahead of OEC to
maintain the company's large size and scale, and strong credit
metrics in the context of the deteriorating business environment
in Brazil, coupled with the uncertainties related to potential
fines and overall outcomes in the ongoing corruption
investigations in the country.

The rating could be further downgraded in view of Brazil's
sovereign rating deterioration or due to a major deterioration in
OEC's liquidity position, for example by a larger than expected
dividend distribution or contingent payment, that significantly
reduces its available cash reserves to cover upcoming debt
maturities, off-balance obligations and working capital needs. The
rating would also be subject to negative pressure in face of a
prolonged period of weaker operating performance, backlog
reduction or persistent delays in collection of receivables.
Quantitatively, rating's pressure increases should the adjusted
Debt to EBITDA ratio increases above 4.5 times (3.0 times as of
September 30, 2015) or the EBIT to Interest ratio moves below 2.25
times (10.7 times as of September 30, 2015).

An upgrade of OEC ratings is unlike at this time, but outlook
stabilization will be considered if OEC is able to improve or, at
least, maintain its current credit metrics and healthy liquidity
profile throughout the anticipated challenging business
environment in 2016 and 2017. Upward ratings pressure also depends
on further diversification of revenues to the extent that the
total exposure to high sovereign risk countries represents less
than 25% (25% as of September 30, 2015) of its backlog and further
improvement of its corporate governance practices. An upgrade of
OEC's ratings would also depend on an upgrade of Brazil's
government bond rating.

For further detail about the company's ratings please refer to the
latest Credit Opinion in www.moodys.com.
Odebrecht's Engenharia e Construcao S.A. (OEC), is the largest
engineering and construction company in Latin America, with
BRL43.5 billion ($US 14.4 billion) in net revenues during the last
twelve months ended 30 September 2015. The company's project
backlog of BRL114 billion ($US 30 billion) is diversified into 176
contracts comprising large-scale construction projects in the
transportation segment, energy and sewage infrastructures,
buildings and industrial facilities, of which 22% is located in
Brazil, 59% in other Latina American countries and 18% in Africa.
As of 30 September 2015, the company's outstanding cash position
was BRL11.6 billion ($US 2.9 billion) for a total gross debt of
BRL14.2 billion ($US 3.5 billion) that includes its off balance
debt guarantees

OEC is a subsidiary of Odebrecht S.A. (unrated), a family-owned
investment holding company for one of the largest non-financial
conglomerates in Brazil that controls Braskem S.A., the largest
chemical company in Latin America, along with other investments in
the oil & gas, energy sectors, toll roads, water sewage
concessions and real estate. Odebrecht consolidated net revenues
reached BRL104 billion ($US 38.6 billion) in the last twelve
months ended 30 June 2015, of which 36% generated was generated by
OEC, 43% by Braskem, and 21% by other subsidiaries. As of June
2015, the group's consolidated cash position was BRL25.4 billion
($US 8.1 billion) for a total reported debt of BRL98 billion ($US
31.5 billion).


QUICKFOOD: Moody's Cuts Senior Notes Ratings to 'Ba1'
-----------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has
downgraded Quickfood's senior notes guaranteed by BRF S.A. to Ba1
from Baa2 in the global scale, while the national scale rating was
confirmed at Aaa.ar. The rating action is in line with Moody's
Investors Service downgrade of BRF's rating to Ba1 from Baa2, on
February 25, 2016. The outlook of the guaranteed notes' rating is
negative.

Quickfood's Caa1/Ba1.ar corporate family rating remains unchanged.
However, its stable outlook is being changed to "stable
(multiple)" to recognize the change in outlook of the guaranteed
notes.

Approximately $US 62 million in rated debt instruments affected.

RATINGS RATIONALE

The downgrade to Ba1 from Baa2 global scale rating of Quickfood's
outstanding guaranteed notes mirrors the downgrade to Ba1 from
Baa2 of its guarantor, BRF, by Moody's Investors Service on
February 25, 2016. The negative outlook of the notes also mirrors
the negative outlook of BRF rating. BRF fully and unconditionally
guarantees the instruments, which would cause an acceleration of
most of the parent's debt in the event of a default.

The downgrade of BRF's rating follows Moody's Investors Service
decision to downgrade Brazil's government bond rating to Ba2 from
Baa3 on February 24, 2016, thereby concluding a review process
initiated on December 11, 2015. BRF's Ba1 rating ranks one notch
above Brazil's government bond rating of Ba2. Granted only on an
exceptional basis, the one notch difference represents a
fundamental corporate profile that is stronger than the
sovereign's. BRF's negative outlook mirrors Brazil's sovereign
ratings outlook.

Quickfood's standalone Caa1/Ba1.ar ratings reflect its position as
one of the main meat processor companies in Argentina, supported
by the quality of its products and its well-recognized brands--
mainly 'Paty', which is also the country's generic burger name.
The rating also considers the potential benefits derived from
BRF's 90.05% ownership in the company. A matter of great
importance for rating is the incorporation of ongoing support,
both in terms of quality and technical affairs, provided by BRF.
The ratings are mainly constrained by Quickfood's historical weak
credit and financial profiles, the company's modest scale and its
concentration in Argentina, with a consequent strong correlation
with the country's macroeconomic environment.

The rating of the guaranteed notes could be upgraded or downgraded
if BRF's ratings were to be upgraded or downgraded, respectively.
Furthermore, give the close relationship between BRF's rating and
Brazil's sovereign rating, upward or downward pressure on Brazil's
Government bond rating could arise upward or downgrade pressure on
BRF's rating and, therefore, on the guaranteed notes' rating.

Founded in 1960 and headquartered in Buenos Aires, Argentina,
Quickfood is dedicated to the manufacturing and commercialization
of processed, refrigerated and frozen foods under specific brands.
In 2012 BRF acquired 90.05% stake in the company. As of LTM ended
September 2015, revenues amounted to ARS3.5 billion (approximately
$US 380 million).

BRF is one of the largest food conglomerates globally, with
consolidated net revenues of BRL31.3 billion as of LTM ended
September 2015. Processed food and food service, which typically
generates higher and less volatile margins than the chilled and
frozen protein export business, represented about 50% of net
sales. The company operates 45 plants and 37 distribution centers,
exports to more than 120 countries and has a leading position in
global poultry exports.

RAIZEN COMBUSTIVEIS: Moody's Cuts Corporate Family Rating to Ba1
----------------------------------------------------------------
Moody's America Latina Ltda downgraded the ratings of the BRL 675
million CPRF-s due 2021 issued by Raizen Energia S.A. (guaranteed
by Raizen Combustiveis S.A.) to Ba1/Aa1.br from Baa3/Aaa.br. At
the same time, Raizen Combustiveis S.A.'s issuer ratings were
withdrawn and a Ba1/Aa1.br corporate family rating was assigned.
Simultaneously, Moody's withdrew the national scale issuer ratings
of Raizen Energia. The outlook for the ratings is negative.

The rating action follows Moody's downgrade on February 24, 2016
of Brazil's government bond rating to Ba2 from Baa3. In addition
to downgrading Brazil's government bond rating, Moody's also
downgraded the country's senior unsecured debt rating to Ba2 from
Baa3, and the senior unsecured shelf rating to (P)Ba2 from
(P)Baa3. The outlook was changed to negative. The rating agency
also changed Brazil's country ceiling that went to Ba1 from Baa2.

Rating downgraded:

Issuer: Raizen Energia S.A.

BRL 675 million Gtd CPRF-s due 2021: to Ba1/Aa1.br from
Baa3/Aaa.br

Ratings assigned:

Issuer: Raizen Combustiveis S.A.

LT CFR: Ba1/Aa1.br

Ratings withdrawn:

Issuer: Raizen Combustiveis S.A.

LT issuer rating: withdrawn Baa3/Aaa.br

Issuer: Raizen Energia:

LT issuer rating: withdrawn Aaa.br

The outlook for the ratings is negative.

RATINGS RATIONALE

The downgrade on Raizen's ratings was prompted by the downgrade on
Brazil's sovereign issuer and bond ratings to Ba2 from Baa3. As
per Moody's methodology "How Sovereign Credit Quality Can Affect
Other Ratings", published on March 16, 2015, deterioration in
sovereign credit quality can directly affect the credit standing
of issuers domiciled within the country, but issuers with
fundamentals that are stronger than the sovereign could be rated
above it on an exceptional basis. Raizen's ratings stand one notch
above Brazil's ratings, given its strong financial profile and
resilient business model relative to the domestic environment,
which limits the impact of weak domestic economic fundamentals in
the company's credit profile, despite revenue and asset
concentration in Brazil. Furthermore, the upstream business has a
strong export element (approximately 30% of Raizen's total EBITDA
is in $US ) and the company benefits from the ownership of Shell
Brazil Holdings BV (a 100% subsidiary of Royal Dutch Shell Plc,
rated Aa1/RuR Down). Finally, although maintenance capex is high
and could pressure future free cash flow generation, the company
has the flexibility to reduce dividend payments to preserve its
liquidity profile.

Raizen's ratings are supported by its good credit metrics and
solid position in both the upstream and downstream businesses in
Brazil. In our view, while the sugar-ethanol operations provide
higher but more volatile margins, some insulation from Brazil's
domestic consumption because of the export-oriented nature and
potential growth over the next several years, the fuel
distribution segment is a source of stable operating performance
and cash generation, even as the domestic market decelerates. The
ratings also consider the existence of cross guarantees between
Raizen Energia and Raizen Combustiveis in most debt instruments
issued and the companies' affiliation with and support of Shell,
given the benefit derived from Shell's managerial expertise, as
well as the explicit support provided by both shareholders --
Shell and Cosan S.A. (Ba2 stable) - in the form of a $US500
million backstop facility.

The ratings continue to be constrained by the volatile nature of
its upstream business, which represented 53% of the company's
EBITDA in the 2014-15 harvest year. Although Raizen's relatively
lower percentage of owned sugarcane when compared to peers could
allow for less margin volatility in lower production years, the
sugar-ethanol industry is highly dependent on external factors,
such as weather conditions and government's incentives and
policies, which can significantly affect prices and Raizen's
financial performance. In addition, the rating is unlikely to
stand more than one notch above the sovereign's government bond
rating.

With the recent downgrade of the government of Brazil on the
global rating scale and other issuers whose risk profiles are
affected by related credit considerations, the distribution of
national scale ratings (NSRs) among issuers in Brazil has become
compressed, particularly at the Aa2.br level. As a result, the
current mapping of global scale ratings to national scale ratings
may no longer be adequately serving one of its intended purposes,
which is to provide greater credit differentiation among issuers
in Brazil than is possible on the global rating scale. However, if
Moody's NSR methodology is revised as proposed in the Request for
Comment (RFC) entitled "Mapping National Scale Ratings from Global
Scale Ratings" published on January 20, the resulting new
Brazilian scale would likely imply that many Brazil global scale
ratings would be remapped to higher ratings on the national scale.

While the RFC included a new proposed national scale map for
Brazil, given the aforementioned ratings changes, the new map
design for Brazil will likely differ from the specific map
proposal included in the RFC. In addition to the proposed
Brazilian map, the RFC comprised a proposed update to our
methodology for mapping national scale ratings from global scale
ratings, including guidelines for the design of new national scale
maps and changes to existing maps, as well as proposed new
national scale maps for each of the other countries in which we
currently offer NSRs. The comment period for this RFC closed on
February 22.

The negative outlook on Raizen's ratings mirrors Brazil's
sovereign ratings outlook.

Although unlikely in the short term, an upgrade on Raizen's rating
would be dependent on upgrade on Brazil's sovereign rating and on
the maintenance by Raizen of strong credit metrics and liquidity
profile. Quantitatively, the ratings could be upgraded if Total
Adjusted Debt to EBITDA remains below 2.5x. Positive free cash
flow generation on a sustainable basis or a stronger demonstration
of support by Shell could also translate into considerations for
positive rating momentum.

A downgrade could result from the inability to maintain EBITDA
margins at current levels. In addition, Debt/EBITDA above 3.5x and
CFO/Net Debt below 25% on a sustained basis could trigger a
downgrade. A deterioration in the company's liquidity profile or
additional negative actions on Brazil's sovereign ratings would
also trigger a downgrade of Raizen's ratings.

Headquartered in Sao Paulo and created in 2012, Raizen represents
the 50-50% joint-venture formed by Cosan S.A. Industria e Comercio
(rated Ba2/Stable) and Shell Brazil Holdings BV (a 100% subsidiary
of Royal Dutch Shell Plc, rated Aa1/RuR Down). The JV operates
under two main legal entities, Raizen Energia S.A. and Raizen
Combustiveis S.A., and Moody's analyzes the companies as a
combined entity, given the existence of cross-guarantees in each
other's debt issuances.

With crushing capacity of 68 million tons and 24 sugar-ethanol
mills, Raizen Energia is the largest player in the fragmented
sugar and ethanol business in Brazil. Raizen Combustiveis operates
in the fuel distribution segment under the Shell brand, being the
third largest player in the country. During the last twelve months
ended in December 2015, the entities generated revenues of BRL 71
billion (approximately $US21.3 billion converted by the average
exchange rate for the period) and reported EBITDA of BRL 5.6
billion (approximately $US1.7 billion).


RAIZEN ENERGY: Moody's Cuts Sr. Unsecured Notes Due 2017 to Ba1
---------------------------------------------------------------
Moody's Investors Service downgraded to Ba1 from Baa3 the senior
unsecured ratings of the notes issued by Raizen Energy Finance
Limited, and guaranteed by Raizen Energia S.A. and Raizen
Combustiveis S.A. At the same time, Moody's withdrew Raizen
Energia's issuer ratings. The outlook for the ratings is negative.

The rating action follows Moody's downgrade on February 24, 2016
of Brazil's government bond rating to Ba2 from Baa3. In addition
to downgrading Brazil's government bond rating, Moody's also
downgraded the country's senior unsecured debt rating to Ba2 from
Baa3, and the senior unsecured shelf rating to (P)Ba2 from
(P)Baa3. The outlook was changed to negative. The rating agency
also changed Brazil's country ceiling that went to Ba1 from Baa2.

This rating action concludes the review for downgrade initiated on
December 2015.

Ratings downgraded:

Issuer: Raizen Energy Finance Limited

$US 400 million senior unsecured notes due 2017 (guaranteed by
Raizen Combustiveis S.A. and Raizen Energia S.A.): to Ba1 from
Baa3

Ratings withdrawn:

Issuer: Raizen Energia S.A.

LT issuer rating: Withdrawn Baa3

The outlook for the rating is negative.

RATINGS RATIONALE

The downgrade on Raizen's ratings was prompted by the downgrade on
Brazil's sovereign issuer and bond ratings to Ba2 from Baa3. As
per Moody's methodology "How Sovereign Credit Quality Can Affect
Other Ratings", published on March 16, 2015, deterioration in
sovereign credit quality can directly affect the credit standing
of issuers domiciled within the country, but issuers with
fundamentals that are stronger than the sovereign could be rated
above it on an exceptional basis. Raizen's ratings stand one notch
above Brazil's ratings, given its strong financial profile and
resilient business model relative to the domestic environment,
which limits the impact of weak domestic economic fundamentals in
the company's credit profile, despite revenue and asset
concentration in Brazil. Furthermore, the upstream business has a
strong export element (approximately 30% of Raizen's total EBITDA
is in $US ) and the company benefits from the ownership of Shell
Brazil Holdings BV (a 100% subsidiary of Royal Dutch Shell Plc,
rated Aa1/RuR Down). Finally, although maintenance capex is high
and could pressure future free cash flow generation, the company
has the flexibility to reduce dividend payments to preserve its
liquidity profile.

Raizen's ratings are supported by its good credit metrics and
solid position in both the upstream and downstream businesses in
Brazil. In our view, while the sugar-ethanol operations provide
higher but more volatile margins, some insulation from Brazil's
domestic consumption because of the export-oriented nature and
potential growth over the next several years, the fuel
distribution segment is a source of stable operating performance
and cash generation, even as the domestic market decelerates. The
ratings also consider the existence of cross guarantees between
Raizen Energia and Raizen Combustiveis in most debt instruments
issued and the companies' affiliation with and support of Shell,
given the benefit derived from Shell's managerial expertise, as
well as the explicit support provided by both shareholders --
Shell and Cosan S.A. (Ba2 stable) -- in the form of a $US500
million backstop facility.

The negative outlook on Raizen's ratings mirrors Brazil's
sovereign ratings outlook.

Although unlikely in the short term, an upgrade on Raizen's rating
would be dependent on upgrade on Brazil's sovereign rating and on
the maintenance by Raizen of strong credit metrics and liquidity
profile. Quantitatively, the ratings could be upgraded if Total
Adjusted Debt to EBITDA remains below 2.5x. Positive free cash
flow generation on a sustainable basis or a stronger demonstration
of support by Shell could also translate into considerations for
positive rating momentum.

A downgrade could result from the inability to maintain EBITDA
margins at current levels. In addition, Debt/EBITDA above 3.5x and
CFO/Net Debt below 25% on a sustained basis could trigger a
downgrade. A deterioration in the company's liquidity profile or
additional negative actions on Brazil's sovereign ratings would
also trigger a downgrade of Raizen's ratings.

Headquartered in Sao Paulo and created in 2012, Raizen represents
the 50-50% joint-venture formed by Cosan S.A. Industria e Comercio
(rated Ba2/Stable) and Shell Brazil Holdings BV (a 100% subsidiary
of Royal Dutch Shell Plc, rated Aa1/RuR Down). The JV operates
under two main legal entities, Raizen Energia S.A. and Raizen
Combustiveis S.A., and Moody's analyzes the companies as a
combined entity, given the existence of cross-guarantees in each
other's debt issuances.

With crushing capacity of 68 million tons and 24 sugar-ethanol
mills, Raizen Energia is the largest player in the fragmented
sugar and ethanol business in Brazil. Raizen Combustiveis operates
in the fuel distribution segment under the Shell brand, being the
third largest player in the country. During the last twelve months
ended in December 2015, the entities generated revenues of BRL 71
billion (approximately $US21.3 billion converted by the average
exchange rate for the period) and reported EBITDA of BRL 5.6
billion (approximately $US1.7 billion).


RB CAPITAL: Moody's Cuts Global Scale Loc. Currency Rating to B3
----------------------------------------------------------------
Moody's America Latina Ltda. has downgraded to B3 from Ba3 (global
scale, local currency) and to B1.br from A3.br (national scale)
the ratings of 3rd series of certificates of RB Capital
Securitizadora S.A., the 4th series of certificates of RB Capital
Securitizadora S.A and the 42nd series of certificates of RB
Capital Securitizadora S.A. This action concludes the review
Moody's initiated on December 11, 2015, when it placed the ratings
under review for further downgrade.

These three series of real estate certificates (CRI) issued by RB
Capital Securitizadora are backed by built-to-suit lease
agreements with Petroleo Brasileiro S.A. -- Petrobras (B3 negative
outlook).

The rating action follows Moody's decision to downgrade Petrobras'
senior unsecured rating to B3 (negative outlook) from Ba3 (under
review for downgrade) on February 24, 2016, following Moody's
February 24, 2016 rating action in which Brazil's government bond
rating was downgraded to Ba2 (negative outlook) from Baa3 (under
review for downgrade).

The full rating action is as follows:

Issuer: RB Capital Securitizadora S.A.

3rd series CRI backed by a built-to-suit lease agreement:
Downgraded to B3 from Ba3 (global scale, local currency);
Downgraded to B1.br from A3.br (national scale); and

4th series CRI backed by a built-to-suit lease agreement:
Downgraded to B3 from Ba3 (global scale, local currency);
Downgraded to B1.br from A3.br (national scale); and

42nd series CRI backed by a built-to-suit lease agreement:
Downgraded to B3 from Ba3 (global scale, local currency);
Downgraded to B1.br from A3.br (national scale).

RATINGS RATIONALE

Moody's views the certificates as being full pass through
securities of Petrobras' senior unsecured credit risk under the
built-to-suit lease agreements.

The B3 / B1.br ratings of the 3rd, 4th and 42nd series of
certificates issued by RB Capital Securitizadora are primarily
based on Petrobras' ability to make payments under the underlying
lease agreements. Also, Petrobras covers taxes and trust expenses
and a termination of the lease agreements would result in a call
under the certificates.

Factors that would lead to an upgrade or downgrade of the rating:

Any future changes to the senior unsecured debt rating of
Petrobras will lead to a change in the ratings assigned to the
certificates.

POTENTIAL MAPPING RECALIBRATION FROM GLOBAL SCALE TO NATIONAL
SCALE RATINGS

With the recent downgrade of the government of Brazil on the
global rating scale and other issuers whose risk profiles are
affected by related credit considerations, the distribution of
national scale ratings (NSRs) among issuers in Brazil has become
compressed, particularly at the Aa2.br level. As a result, the
current mapping of global scale ratings to national scale ratings
may no longer be adequately serving one of its intended purposes,
which is to provide greater credit differentiation among issuers
in Brazil than is possible on the global rating scale. However, if
Moody's NSR methodology is revised as proposed in the Request for
Comment (RFC) entitled "Mapping National Scale Ratings from Global
Scale Ratings" published on January 20, the resulting new
Brazilian scale would likely imply that many Brazil global scale
ratings would be remapped to higher ratings on the national scale.

While the RFC included a new proposed national scale map for
Brazil, given the aforementioned ratings changes, the new map
design for Brazil will likely differ from the specific map
proposal included in the RFC. In addition to the proposed
Brazilian map, the RFC comprised a proposed update to our
methodology for mapping national scale ratings from global scale
ratings, including guidelines for the design of new national scale
maps and changes to existing maps, as well as proposed new
national scale maps for each of the other countries in which we
currently offer NSRs. The comment period for this RFC closed on
February 22.


ULTRAPAR PARTICIPACOES: Moody's Assigns Ba1 CFR, Outlook Neg.
-------------------------------------------------------------
Moody's Investors Service withdrawn Ultrapar Participacoes S.A.'
Baa2 issuer rating (global scale) and assigned a Ba1 corporate
family rating to the company. The outlook for the rating is
negative.

The rating action follows Moody's downgrade on February 24, 2016
of Brazil's government bond rating to Ba2 from Baa3. In addition
to downgrading Brazil's government bond rating, Moody's also
downgraded the country's senior unsecured debt rating to Ba2 from
Baa3, and the senior unsecured shelf rating to (P)Ba2 from
(P)Baa3. The outlook was changed to negative. The rating agency
also changed Brazil's country ceiling that went to Ba1 from Baa2.

This rating action concludes the review for downgrade initiated on
December 2015.

Ratings assigned:

Issuer: Ultrapar Participacoes S.A.

-- Corporate Family Rating: Ba1

Issuer: Ultrapar Participacoes S.A.

-- LT Issuer Rating: Withdrawn Baa2

The outlook for the rating is negative.

RATINGS RATIONALE

The downgrade follows the downgrade of Brazil's government bond
rating to Ba2 from Baa3. This concludes the review process
initiated on December 11, 2015.

Ultrapar's Ba1 ratings stand one notch above Brazil's sovereign
rating reflecting the company's strong financial profile and
resilient business model. Despite its revenue and asset
concentration in Brazil, we believe that the company has a strong
financial profile and a resilient business model, which limits the
impact of weak domestic economic fundamentals on the company's
creditworthiness. The company's fuel and liquefied petroleum gas
distribution businesses are resilient with strong defensive
characteristics, allowing Ultrapar to generate stable growth rates
even during economic recessions. Over the past few years the
company demonstrated its ability to post robust growth across all
business lines and to sustain conservative credit metrics and
strong cash generation even under adverse market conditions and a
sizable capital expenditure plan. Nevertheless, the rating is
unlikely to stand more than one notch above the sovereign's
government bond rating, given the company's close ties to the
Brazilian economy.

The rating reflects primarily Ultrapar's solid business model, low
risk profile, stable cash flows and leading position in its
different segments. Furthermore, despite its relatively short debt
maturity schedule, we believe that Ultrapar has the financial
flexibility to reduce capital expenditure and dividend payments to
preserve liquidity and reduce its reliance on domestic banks or
capital markets to fund operations in case of need.

The rating continues to be constrained by the company's
acquisitive growth strategy, which could negatively impact
leverage ratios and its dependence on a few key suppliers for raw
materials. To a lesser extent, the more cyclical nature of its
specialty chemicals business is also viewed as a rating
constraint.

The negative outlook on Ultrapar's rating mirrors Brazil's
sovereign ratings outlook.

Although unlikely in the short term, an upgrade of Ultrapar's
rating would depend on an upgrade of Brazil's sovereign rating and
on the maintenance by Ultrapar of strong credit metrics and
liquidity profile.

Negative pressure on the rating could arise from a deterioration
in the group's liquidity position or an increase in leverage (debt
to EBITDA above 4.0x) without prospects of deleveraging in the
near term. A drop in interest coverage as measured by EBIT to
interest expense below 2.5x for a prolonged period of time, and
operating margins below 3.0%, could negatively pressure the
rating. Additional negative actions on Brazil's sovereign rating
would also trigger a downgrade of Ultrapar's ratings.

Ultrapar Participacoes S.A., headquartered in Sao Paulo, Brazil,
is engaged in fuel (Ipiranga) and liquefied petroleum gas
(Ultragaz) distribution, specialty chemicals production (Oxiteno),
storage for liquid bulk (Ultracargo) and retail drugstore
(Extrafarma). For 2015 Ultrapar reported consolidated net revenues
of BRL 75.7 billion (about $US22.7 billion). Fuel distribution is
the group's largest business segment, representing 86% of
consolidated net revenues and 70% of EBITDA for 2015. M&A activity
has historically been the key driver of Ultrapar's growth
strategy, although we expect relatively smaller transactions to
take place going forward.


VALE SA: Faces "Chin" Suit Over Misleading Financial Reports
------------------------------------------------------------
Valli T. Chin, individually and on behalf of all others similarly
situated v. Vale S.A., Murilo Pinto de Oliveira Ferreira, Luciano
Siani Pires, and Peter Poppinga, Case No. 1:16-cv-00658 (S.D.N.Y.,
January 28, 2016) alleges that the Defendants made false and
misleading statements, as well as failed to disclose material
adverse facts about the Company's business, operations, and
prospects.

Vale S.A. is a mining company incorporated in Brazil and
headquartered in Rio de Janeiro, Brazil.

The Plaintiff is represented by:

      Francis A. Bottini Jr., Esq.
      BOTTINI & BOTTINI, INC.
      7817 Ivanhoe Avenue, Suite 102
      La Jolla, CA 92037
      Telephone: (858) 914-2001
      Facsimile: (858) 914-2002
      Email: fbottini@bottinilaw.com
             achang@bottinilaw.com



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


1903 OFFSHORE: Placed Under Voluntary Wind-Up
---------------------------------------------
On Dec. 15, 2015, the sole shareholder of 1903 Offshore Debt Fund,
Ltd. resolved to voluntarily wind up the company's operations.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          Elian Fiduciary Services (Cayman) Limited
          c/o Justin Savage
          Ogier
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9009
          Cayman Islands
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949-9877


1903 OFFSHORE SPV: Placed Under Voluntary Wind-Up
-------------------------------------------------
On Dec. 15, 2015, the sole shareholder of 1903 Offshore Loans SPV
Limited resolved to voluntarily wind up the company's operations.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          Elian Fiduciary Services (Cayman) Limited
          c/o Justin Savage
          Ogier
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9009
          Cayman Islands
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949-9877


BB OPERATIONS: Commences Liquidation Proceedings
------------------------------------------------
On Dec. 14, 2015, the shareholders of BB Operations Ltd. resolved
to voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
Feb. 4, 2016, will be included in the company's dividend
distribution.

The company's liquidator is:

          Jacques Levesque
          c/o Richard Rich
          Arcadia Group Ltd.
          P.O. Box 10300 Grand Cayman KY1-1003
          Cayman Islands
          Telephone: 345 945 1830
          Facsimile: 345 945 1835


BB YACHTING: Commences Liquidation Proceedings
----------------------------------------------
On Dec. 14, 2015, the shareholders of BB Yachting Ltd. resolved to
voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
Feb. 4, 2016, will be included in the company's dividend
distribution.

The company's liquidator is:

          Jacques Levesque
          c/o Richard Rich
          Arcadia Group Ltd.
          P.O. Box 10300 Grand Cayman KY1-1003
          Cayman Islands
          Telephone: 345 945 1830
          Facsimile: 345 945 1835


CPC/WEETABIX: Commences Liquidation Proceedings
-----------------------------------------------
On Dec. 16, 2015, the sole shareholder of CPC/Weetabix SBS, Ltd.
resolved to voluntarily liquidate the company's business.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          Royal W. Carson, III
          500 Victory Plaza East
          3030 Olive Street, Dallas
          Texas
          United States


EXCALIBUR INVESTMENTS: Placed Under Voluntary Wind-Up
-----------------------------------------------------
On Dec. 21, 2015, the sole shareholder of The Excalibur
Investments Fund resolved to voluntarily wind up the company's
operations.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          John S. Sullivan
          c/o Tim Cone
          Ogier
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9009
          Cayman Islands
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949-9877


GOTTEX HORIZON: Commences Liquidation Proceedings
-------------------------------------------------
On Dec. 18, 2105, the members of Gottex Horizon Fund Limited
resolved to voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
Jan. 26, 2016, will be included in the company's dividend
distribution.

The company's liquidator is:

          Margot Macinnis
          Borrelli Walsh (Cayman) Limited
          Harbour Place, Ground Floor
          103 South Church Street
          Suite 731, 10 Market Street, Camana Bay
          Grand Cayman KY1 9006
          Cayman Islands
          Telephone: +345 743 8800
          Facsimile: +345 743 8801


ICS CAYCO: Commences Liquidation Proceedings
--------------------------------------------
On Dec. 17, 2015, the shareholders of ICS Cayco GP Limited
resolved to voluntarily liquidate the company's business.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          Walkers Liquidations Limited
          Cayman Corporate Centre
          27 Hospital Road, George Town
          Grand Cayman KY1-9008
          Cayman Islands
          Telephone: +1 (345) 949 0100


KARAMAAN GROUP: Placed Under Voluntary Wind-Up
----------------------------------------------
On Dec. 21, 2015, the sole shareholder of Karamaan Group Fund,
Ltd. resolved to voluntarily wind up the company's operations.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          Karamaan Group, LLC
          c/o Tim Cone
          Ogier
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9009
          Cayman Islands
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949-9877


KARAMAAN GROUP MASTER: Placed Under Voluntary Wind-Up
-----------------------------------------------------
On Dec. 21, 2015, the sole shareholder of Karamaan Group Master
Fund, Ltd. resolved to voluntarily wind up the company's
operations.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          Karamaan Group, LLC
          c/o Tim Cone
          Ogier
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9009
          Cayman Islands
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949-9877


KPEB TRUSTEE: Shareholders Receive Wind-Up Report
-------------------------------------------------
The shareholders of KPEB Trustee (Cayman) Limited received on
Jan. 26, 2016, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company commenced liquidation proceedings on Dec. 21, 2015.

The company's liquidator is:

          Elian Fiduciary (Cayman) Limited
          c/o Lynden John
          Tamara Hill
          89 Nexus Way, Camana Bay
          Cayman Islands, KY1-9007
          Telephone: +1 (345) 815 1456


LOOK'S HOLDING: Placed Under Voluntary Wind-Up
----------------------------------------------
On Dec. 18, 2015, the sole shareholder of Look's Holding Limited
resolved to voluntarily wind up the company's operations.

Only creditors who were able to file their proofs of debt by
Jan. 25, 2016, will be included in the company's dividend
distribution.

The company's liquidator is:

          Andrew Look
          TG Place, Unit 30D1, 30th Floor
          10 Shing Yip Street
          Kwun Tong, Kowloon
          Hong Kong
          Telephone: +852 2912 5133
          Facsimile: +852 2810 4468


OCEAN DIAL: Placed Under Voluntary Wind-Up
------------------------------------------
On Dec. 14, 2015, the sole member of Ocean Dial Absolute Return
Fund resolved to voluntarily wind up the company's operations.

Only creditors who were able to file their proofs of debt by
Jan. 25, 2016, will be included in the company's dividend
distribution.

The company's liquidator is:

          Richard Fear
          c/o Ryan Charles
          P.O. Box 2681 Grand Cayman KY1-1111
          Cayman Islands
          Telephone: (345) 814 7364
          Facsimile: (345) 945 3902


OMAN HUNT: Commences Liquidation Proceedings
--------------------------------------------
On Dec. 14, 2015, the members of Oman Hunt Oil Company resolved to
voluntarily liquidate the company's business.

Only creditors who were able to file their proofs of debt by
Jan. 25, 2016, will be included in the company's dividend
distribution.

The company's liquidator is:

          Appleby Trust (Cayman) Ltd.
          c/o Richard Gordon
          75 Fort Street
          P.O. Box 1350 Grand Cayman KY1-1108
          Cayman Islands
          Telephone: +1 (345) 949 4900


ROYCE GLOBAL: Placed Under Voluntary Wind-Up
--------------------------------------------
On Dec. 21, 2015, the sole shareholder of Royce Global Explorer
Fund, Ltd. resolved to voluntarily wind up the company's
operations.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          Dilip Badlani
          c/o Jody Powery-Gilbert
          Ogier
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9009
          Cayman Islands
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949-9877


SECUTRUST SHIPPING: Placed Under Voluntary Wind-Up
--------------------------------------------------
At an extraordinary general meeting held on Dec. 7, 2015, the
shareholders of Secutrust Shipping (Cayman Islands) CFS Limited
resolved to voluntarily wind up the company's operations.

Only creditors who were able to file their proofs of debt by
Feb. 3, 2016, will be included in the company's dividend
distribution.

The company's liquidator is:

          Mr. Marc Bartels
          Stockholmer Allee 53
          44269 Dortmund
          Germany
          Telephone: +49 231 557 1730
          e-mail: marc.bartels@dr-peters.de


UFG RUSSIA: Placed Under Voluntary Wind-Up
------------------------------------------
On Dec. 15, 2015, the sole shareholder of UFG Russia Alternative
Fund Ltd. resolved to voluntarily wind up the company's
operations.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          Elian Fiduciary Services (Cayman) Limited
          c/o Piers Dryden
          Ogier
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9007
          Cayman Islands
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949-9877


UFG RUSSIA MASTER: Placed Under Voluntary Wind-Up
-------------------------------------------------
On Dec. 18, 2015, the sole shareholder of UFG Russia Alternative
Master Account Ltd. resolved to voluntarily wind up the company's
operations.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          Elian Fiduciary Services (Cayman) Limited
          c/o Piers Dryden
          Ogier
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9007
          Cayman Islands
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949-9877


UFG RUSSIA PARTNERS: Placed Under Voluntary Wind-Up
---------------------------------------------------
On Dec. 15, 2015, the sole shareholder of UFG Russia Alternative
Fund Partners Ltd. resolved to voluntarily wind up the company's
operations.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          Elian Fiduciary Services (Cayman) Limited
          c/o Piers Dryden
          Ogier
          89 Nexus Way, Camana Bay
          Grand Cayman KY1-9007
          Cayman Islands
          Telephone: +1 (345) 949 9876
          Facsimile: +1 (345) 949-9877


ZEBEDEE TRADING: Placed Under Voluntary Wind-Up
-----------------------------------------------
On Dec. 15, 2015, the sole shareholder of Zebedee Trading Fund
Limited resolved to voluntarily wind up the company's operations.

Creditors are required to file their proofs of debt to be included
in the company's dividend distribution.

The company's liquidator is:

          Avalon Ltd.
          Reference: GL
          Landmark Square, 1st Floor, 64 Earth Close
          P.O. Box 715 Grand Cayman KY1-1107
          Cayman Islands
          Telephone: (+1) 345 769 4422
          Facsimile: (+1) 345 769 9351



===================
C O S T A   R I C A
===================


COSTA RICA: S&P Lowers Sovereign Rating to 'BB-', Outlook Neg.
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term foreign
and local currency sovereign credit ratings on the Republic of
Costa Rica to 'BB-' from 'BB'.  The outlook is negative.  At the
same time, S&P affirmed its 'B' short-term foreign and local
currency sovereign credit ratings.  S&P also lowered its transfer
and convertibility assessment to 'BB+' from 'BBB-'.

                            RATIONALE

The downgrade reflects continued fiscal deterioration that has
resulted in a growing debt burden and rising interest payments.
The combination of persistent spending pressures and lack of tax
reform has gradually weakened the country's public finances and
raised its vulnerability to external shocks.

As the Administration of President Luis Guillermo Solis approaches
its last full year in office in 2017, S&P thinks it is
increasingly unlikely that it will be able to pass a substantial
fiscal reform.  The country's fragmented Congress and protracted
process for agreeing upon legislation have blocked the passage of
comprehensive fiscal reform (including changes to income taxes and
a shift to value-added taxes) for many years.  As a result, S&P
expects that Costa Rica's general government fiscal deficit will
continue increasing this year and surpass 7% of GDP in 2017, which
would boost net general government debt above 45% of GDP.
(According to Standard & Poor's definition, the general government
deficit includes the central bank, decentralized government
agencies, and social security.)  S&P expects that interest
payments would reach almost 13% of general government revenues in
2017, from 8% in 2012.

The Solis Administration has attempted to contain spending growth
while seeking to pass fiscal reform.  However, general government
debt has increased an average of 5.5% of GDP during the last three
years, and S&P expects that it will increase an average of 7% of
GDP during 2016-2018.  Debt denominated in foreign currency
accounts for just under 40% of total sovereign debt, illustrating
the government's vulnerability to an unexpected adverse change in
the exchange rate, which could result in higher debt service
costs.  A high level of dollarization, with dollar-denominated
loans accounting for around half of total loans, constrains Costa
Rica's monetary flexibility.

S&P projects that narrow net external debt (gross external debt
less official reserves, other liquid external assets held by the
public sector, and financial sector external assets) will reach
48% of current account receipts (CAR) in 2016, up from 31% in
2013.  Similarly, net external liabilities (total public- and
private-sector liabilities to nonresidents less total external
assets) may reach 149% of CAR in 2016, up from 112% in 2013.  A
weakening external position, combined with a rising government
debt burden, could reduce the sovereign's ability to absorb the
impact of unexpected negative shocks.  Moreover, as a small, open
economy, the country's long-term GDP growth rate could suffer if
recent real appreciation of the currency undermines its external
competitiveness.

Costa Rica's long-term growth prospects remain moderate, despite
deceleration in 2015 following the contraction of its exports.
S&P projects GDP growth to average 3.6% in 2016-2018, with per
capita GDP growing above 2% per year.  S&P expects Costa Rica will
continue to benefit from a stable political system with ample
checks and balances.  Costa Rica scores higher than most of its
regional neighbors, as well as rated peers, in measures of
economic and human development.  Its per capita GDP is likely to
be just under $11,000 this year.

Declining oil prices helped lower Costa Rica's current account
deficit (CAD) in 2015 to 4.1% of GDP, and despite a 15% drop in
exports due to the closure of Intel's local manufacturing
operations.  S&P projects that Costa Rica's CAD will hover around
4% of GDP in 2016 and 2017, with foreign direct investment funding
more than 90% of it.

                              OUTLOOK

S&P expects that Costa Rica's general government fiscal deficit
will be around 6% of GDP in 2016, resulting in an increase in net
general government debt to 42% of GDP.  In S&P's view, a
comprehensive fiscal reform is increasingly unlikely, forcing the
government to rely more on expenditure controls to contain fiscal
slippage.  Per capita GDP growth is likely to be 2.6% this year,
not enough to generate the added tax revenues that could help
stabilize the fiscal deficit.

There is a one-in-three chance that S&P could lower its rating on
Costa Rica over the next six to 18 months if the country's
political leadership fails to reach consensus on fiscal measures
and implement them in a timely manner to contain further
deterioration in public finances.  Failure to deepen expenditure
control measures and gain added revenues would contribute to a
steady rise in the government's debt burden, leading to a
downgrade.  Continued fiscal slippage or worsening external debt
conditions would significantly increase the share of government
revenues devoted to paying interests.

Conversely, a fiscal correction that lowers the general government
fiscal deficit and slows the rise in government debt could
stabilize the sovereign's debt burden.  That, along with continued
economic growth and modest current account deficits, could lead
S&P to keep the rating at its current level.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable.  At the onset, the chair confirmed that
the information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee agreed that the "fiscal," "external," and "monetary"
assessments had deteriorated.  All other key rating factors were
unchanged.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion.  The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook.  The weighting of all rating
factors is described in the methodology used in this rating
action.

RATINGS LIST

Downgraded; Ratings Affirmed
                                          To       From
Costa Rica (Republic of)
Sovereign Credit Rating           BB-/Neg./B      BB/Stable/B

Downgraded
                                           To      From
Costa Rica (Republic of)
Transfer & Convertibility Assessment       BB+    BBB-
Senior Unsecured                           BB-    BB



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


DOMINICAN REPUBLIC: To Grow 6% on US Rebound, Cheaper Oil
---------------------------------------------------------
Dominican reports that the economies of Central America and the
Dominican Republic boast good economic prospects in 2016, with an
estimated regional growth of 4.1%, buoyed by strong activity in
the US and lower energy bills resulting from low oil prices, says
the Inter-American Development Bank (IDB) report on the region's
macro economy released.

Gina Montiel, IDB department manager for Central America, Mexico,
Panama and the Dominican Republic and coordinator of the report,
stressed "the increase in income from remittances," mostly from
US, will also help to consolidate the improvement, according to
Dominican.

This contrasts with the gloomy outlook in Latin America that, as a
whole, is expected to close 2016 with a contraction of 0.3% in its
second consecutive year of recession, the report notes.

Ms. Montiel said despite the differences among Central American
countries, it's expected that they'll all rally and "reflect a
greater dynamism to Latin America as a whole," the report notes.

Growth in Panama and the Dominican Republic is estimated to exceed
6%, while El Salvador will be lower than 2.5%, in any case higher
than it had achieved in the last five years, the report relays.

Another key indicator, the report said, is the stability in
prices, which closed at an average annual rate of 1.9% in 2015, as
a result of prudent monetary policies and lower prices on raw
materials, the report discloses.

Despite the positive short-term horizon, the report stresses
persistent weaknesses that undermine the ability to improve
competitiveness in Central America, such as high electricity
costs, the report notes.

The average for industrial energy is US 18.2 cents per kilowatt
hour (kWh) consumed, while in the rest of Latin America is 15.6
cents and the US is 7.1 cents, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Dec. 3, 2015, Fitch Ratings affirmed the Dominican Republic's
long-term foreign and local currency Issuer Default Ratings (IDRs)
at 'B+'.  The Rating Outlooks on the long-term IDRs are revised to
Positive from Stable. The issue ratings on the Dominican
Republic's senior unsecured foreign and local currency bonds are
affirmed at 'B+'. The Country Ceiling is affirmed at 'BB-' and the
short-term foreign currency IDR at 'B'.



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


BANCO INTERACCIONES: Moody's Assigns Ba1 LT GLC Rating
------------------------------------------------------
Moody's de Mexico assigned Ba1 and A1.mx long term global local
currency (GLC) and Mexican National Scale senior unsecured debt
ratings to Banco Interacciones, S.A. Institucion de Banca
M£ltiple, Grupo Financiero Interacciones's (Interacciones)
issuance of Certificados Bursatiles Bancarios (BINTER 16). The
outlook on these ratings is stable.

These certificates for up to MXN1.5 billion will mature in 1,148
days. The Certificados Bursatiles Bancarios will be issued under
Banco Interacciones's Senior Debt Program of Certificados de
Deposito Bancario de Dinero, Certificados Bursatiles Bancarios y
Pagares con Rendimiento Liquidable al Vencimiento (Not Rated). The
program is authorized for a total amount up to MXN20 billion or
its equivalent in Investment Units (UDIS).

The following long term senior unsecured debt ratings were
assigned to Interacciones's issuance of Certificados Bursatiles
Bancarios (BINTER 16):

  Long-term global local currency senior unsecured debt rating of
  Ba1

  Long-term Mexican National Scale senior unsecured debt rating of
  A1.mx

RATINGS RATIONALE

The Ba1 senior unsecured debt rating takes into account
Interacciones' niche business model focused on collateralized
lending to Mexican states and municipalities, and their suppliers,
and incorporates Moody's assessment of a moderate likelihood of
government support in case of stress.

The ratings also incorporate the bank's consistent earnings
generation, driven by its expertise and long-standing
relationships in the sub-sovereign segment. Nevertheless,
Interacciones's narrow focus on a single market segment raises the
risk of significant earnings volatility should that market be
disrupted.

Other credit challenges include the high sector and individual
borrower loan concentrations. However, concentration risks are
mitigated by the fact that most of the bank's largest borrowers
are states and municipalities whose loans are secured by transfer
payments from the Government of Mexico (A3 stable). Financing to
these borrowers is repaid directly from trusts into which the
federal government deposits fiscal transfers to which states and
municipalities are entitled.

In addition, the ratings consider the bank's very high level of
depositor concentration and its reliance on short-term wholesale
funding. Given the relatively long duration of its loan book, this
creates asset and liability mismatches and exposes the bank to
refinancing risks. Lastly, the ratings also capture the bank's
closely-held ownership, which could raise corporate governance-
related risks.

WHAT COULD CHANGE THE RATINGS UP OR DOWN

Continued business expansion and diversification coupled with
further improvements in corporate governance and risk management
practices could put upward pressure on the bank's rating. The
ratings could also benefit from a meaningful increase of stable
and more granular customer deposits and a larger component of
longer-tenor funding.

The ratings could face downward pressure if loan concentrations
increase further or if asset risks increase significantly due to
the bank's expansion into SME and infrastructure lending.

The period of time covered in the financial information used to
determine Banco Interacciones, S.A.'s rating is between 1 January
2011 and 31 December 2015 (source: Moody's, Issuer's annual
audited and quarterly unaudited financial statements, Comision
Nacional Bancaria y de Valores and Banco de Mexico).

The sources and items of information used to determine the rating
include 2014 and 2015 interim financial statements (source:
Moody's and Issuer's quarterly unaudited financial statements);
year-end 2014 audited financial statements (source: Moody's and
Issuer's annual audited financial statements); information on
market position (source: Comision Nacional Bancaria y de Valores);
regulatory capital information (source: Banco de Mexico).

Banco Interacciones is headquartered in Mexico City, Mexico. As of
December 2015, the bank had MXN182.2 billion in assets (source:
Comision Nacional Bancaria y de Valores).



=======
P E R U
=======


CEMENTOS PACASMAYO: S&P Revises Outlook to Pos. & Affirms BB+ CCR
-----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on Cementos
Pacasmayo S.A.A. (CPAC) to positive from stable.  At the same
time, S&P affirmed its 'BB+' corporate credit and issue-level
ratings on CPAC.

The outlook revision reflects S&P's expectation that CPAC will
continue to post solid operating and financial results in the next
12-18 months.  More specifically, S&P expects CPAC to post mid-
single digit revenue growth thanks to favorable industry
fundamentals that will boost cement volume demand and the
company's ability to increase its prices.  S&P also expects the
Piura plant to bolster operating efficiencies because it will
start its full operation in 2016, which will reduce transportation
costs, increase the company's footprint in northern Peru, and
terminate the need to import clinker.  Moreover, S&P expects capex
to drop sharply because the new plant's construction is completed.
As a result, S&P anticipates that the company will be likely to
generate free operating cash flow of about PEN185 million in 2016.
S&P also expects CPAC to maintain a conservative dividend
distribution and its cash balance to rebound year on year, which
would strengthen its key credits metrics.  Finally, S&P expects
CPAC to maintain its conservative business strategy and prudent
financial policy as seen in its cross-currency swap contract,
which fully hedges its $300 million senior unsecured notes.



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


HALAIS GROUP: Voluntary Chapter 11 Case Summary
-----------------------------------------------
Debtor: Halais Group, Inc.
           dba Monte Calvario
        PO Box 5519
        Caguas, PR 00726

Case No.: 16-01361

Chapter 11 Petition Date: February 24, 2016

Court: United States Bankruptcy Court
       District of Puerto Rico (Old San Juan)

Judge: Hon. Mildred Caban Flores

Debtor's Counsel: Carlos A Ruiz Rodriguez, Esq.
                  LCDO. CARLOS ALBERTO RUIZ, CSP
                  PO Box 1298
                  Caguas, PR 00726-1298
                  Tel: (787) 286-9775
                  Fax: (787) 747-2174
                  Email: caruiz@reclamatusderechos.com
                         carlosalbertoruizquiebras@gmail.com

Estimated Assets: $500,000 to $1 million

Estimated Liabilities: $1 million to $10 million

The petition was signed by Raymond Halais, president, authorized
representative of Halais.

The Debtor did not include a list of its largest unsecured
creditors when it filed the petition.


PUERTO RICO: Treasury Warns Congress of Debt Defaults
-----------------------------------------------------
Jonathan Randles at Law360.com reports that the U.S. Department of
the Treasury pushed Congress to enact legislation that would
provide Puerto Rico the power to restructure its $70 billion debt
and other liabilities through the courts, saying that immediate
action is needed to prevent a series of defaults and voluminous
litigation.

U.S. Treasury Counselor Antonio Weiss proposed legislation that
would give Puerto Rico the ability to restructure, contingent upon
the territory accepting a federal oversight board, according to
Law360.com.   The report notes that Mr. Weiss indicated that the
situation is dire: Puerto Rico is likely to default on $800
million in debt payments that will come due in May and July and
force the island's central government to shut down.

"[The proposed legislation] is the best outcome for municipal
markets, far preferable to a protracted, disorderly series of
defaults of unprecedented magnitude and complexity," Law360.com
quoted Mr. Weiss as saying.

Treasury's proposal is more sweeping than legislation that has
been proposed so far by Democrats and Republicans. Testimony from
Weiss adds to the pressure that Treasury is attempting to place on
Congress to act on the Puerto Rico debt crisis, the report notes.
Last month, Treasury Secretary Jacob Lew said that Puerto Rico is
"already in the midst of an economic collapse," the report relays

GOP lawmakers have mostly been against providing Puerto Rico with
a bankruptcy option, though Rep. Sean Duffy, R-Wis., proposed a
bill late last year that would do so, the report discloses.
Puerto Rico, technically a "possession" of the U.S., is excluded
from the nation's bankruptcy laws and is therefore unable to
access tools such as Chapter 9, which is designed to provide
municipalities with debt relief, the report relays.

The report discloses that Mr. Weiss said that Treasury's plan
would be to craft bankruptcy legislation unique for Puerto Rico.
The administration's proposal would provide the island
restructuring authority throughout the Territorial Clause of the
U.S. Constitution and would apply to all of Puerto Rico's
liabilities, he said.

Chapter 9 would allow Puerto Rico to restructure only a third of
its municipal debt, Mr. Weiss said, the report notes.  Bills that
have been proposed in the Senate that would provide Puerto Rico
with access to Chapter 9, or propose a federal oversight board
coupled with tax cuts and other measures, the report discloses.

"We're proposing a legislative act pursuant to the territorial
clause of the Constitution and it is meant to be customized to the
unique conditions that face Puerto Rico in this crisis," Mr. Weiss
said, the report relays.  "It is not, necessarily, a version of
Chapter 9 or an expanded Chapter 9. It's rather a pairing of
oversight authorities and restructuring which would travel
together," Mr. Weiss added.

Mr. Weiss was addressing lawmakers in the House Committee on
Natural Resources.  A House Financial Services subcommittee also
held a hearing on Puerto Rico, examining how providing the
territory access to bankruptcy could affect municipal bond
markets, the report notes.

House Speaker Rep. Paul Ryan, R-Wis., is seeking to have
legislation addressing the debt crisis by the end of the next
month, lawmakers said, the report adds.

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.



=================
X X X X X X X X X
=================


* BOND PRICING: For the Week From Feb. 22 to Feb. 26, 2016
----------------------------------------------------------

Issuer Name     Cpn   Bid Price Maturity Date Country    Curr
-----------     ---   --------- ------------- -------    ----
PDVSA            8.5     56.25   11/2/2017      VE       USD
PDVSA           12.75    53.5    2/17/2022      VE       USD
Kaisa Group
Holdings Ltd     8.87    65.5    3/19/2018      CN       USD
Venezuela       12.75    52.5    8/23/2022      VE       USD
PDVSA            5.25    47.5    4/12/2017      VE       USD
PDVSA            5.37    34.65   4/12/2027      VE       USD
PDVSA            6        6.5   11/15/2026      VE       USD
Venezuela        5.75    61.5    2/26/2016      VE       USD
PDVSA            9.75    46      5/17/2035      VE       USD
Venezuela       11.95    49      8/5/2031       VE       USD
PDVSA            6       37.5    5/16/2024      VE       USD
Kaisa Group
Holdings Ltd     9       82      6/6/2019       CN       USD
PDVSA            9       43.5   11/17/2021      VE       USD
PDVSA            5.5     36.9    4/12/2037      VE       USD
Venezuela       13.62    56      8/15/2018      VE       USD
Kaisa Group
Holdings Ltd    10.25    69       1/8/2020      CN       USD
Kaisa Group
Holdings Ltd    12.87   108       9/18/2017     CN       USD
Odebrecht Oil
& Gas Finance
Ltd              7       68                     KY       USD
CSN Islands
XII Corp         7       74.5                   BR       USD
Venezuela        8.25    44      10/13/2024     VE       USD
Honghua Group
Ltd              7.45    58.5     9/25/2019     CN       USD
PDVSA            5.12    53.48    10/28/2016    VE       USD
Venezuela        7.75    42.5     10/13/2019    VE       USD
Banco do Brasil
SA/Cayman        6.25    75                     KY       USD
Venezuela        7       44.5     12/1/2018     VE       USD
Venezuela        9       44.5      5/7/2023     VE       USD
Kaisa Group
Holdings Ltd     6.87    74.423    4/22/2016    CN       CNY
Venezuela        9.37    44.5      1/13/2034    VE       USD
Venezuela        6       39       12/9/2020     VE       USD
Venezuela        7       40.5      3/31/2038    VE       USD
CA La
Electricidad
de Caracas       8.5     40        4/10/2018    VE       USD
Venezuela        9.25    44.5      5/7/2028     VE       USD
Offshore Group
Investment Ltd   7.5     74.87    11/1/2019     KY       USD
Venezuela        7.65    35.5      4/21/2025    VE       USD
Automotores
Gildemeister SA  8.25    45.87     5/24/2021    CL       USD
Kaisa Group
Holdings Ltd     8       70       12/20/2015    CN       CNY
Venezuela       13.625   48        8/15/2018    VE       USD
Agile Property
Holdings Ltd     8.25    75.05                  CN       USD
McDermott
International
Inc              8       70.5      5/1/2021     US       USD
USJ Acucar e
Alcool SA        9.875   73       11/9/2019     BR       USD
Tonon
Bioenergia SA    9.25    62.3      1/24/2020    BR       USD
Offshore Group
Investment Ltd   7.125   68.06     4/1/2023     KY       USD
Automotores
Gildemeister SA  6.75    44.75     1/15/2023    CL       USD
SMU SA           7.75    76.5      2/8/2020     CL       USD
Mongolian
Mining Corp      8.87    66.5      3/29/2017    MN       USD
Polarcus Ltd     8       40.08     6/7/2018     AE       USD
PSOS Finance
Ltd              11.75   75        4/23/2018    KY       USD
PDVSA             8.5    57.45    11/2/2017     VE       USD
Herbalife Ltd     2      73.7      8/15/2019    US       USD
Cia Energetica
de Sao Paulo      9.75   72.87     1/15/2015    BR       BRL
BA-CA Finance
Cayman Ltd        1.21   63.249                 KY       EUR
Hidili Industry
International
Development Ltd   8.625  76       11/4/2015     CN       USD
China Precious
Metal Resources
Holdings Co Ltd   7.25   52.067    2/4/2018     HK       HKD
Inversora de
Electrica de
Buenos Aires SA   6.5     28.5     9/26/2017    AR       USD
NQ Mobile Inc     4       70.448  10/15/2018    CN       USD
Glorious Property
Holdings Ltd      13.25   71.971   3/4/2018     HK       USD
Kaisa Group
Holdings Ltd       8.875  93.5     3/19/2018    CN       USD
PDVSA              6      37.63   11/15/2026    VE       USD
PDVSA             12.75   51.83    2/17/2022    VE       USD
Polarcus Ltd       8.9    39.854   7/8/2019     AE       NOK
Polarcus Ltd       2.87   68.7     4/27/2016    AE       USD
Empresa
Distribuidora
Y Comercializadora
Norte              9.75    72.42  10/25/2022    AR       USD
PDVSA              6       39.65   5/16/2024    VE       USD
Argentina Bond     1.18     8.12  12/31/2038    AR       ARS
Venezuela Bond    13.625   50.941  8/15/2018    VE       USD
McDermott
International Inc  8       84.5    5/1/2021     US       USD
Tonon
Bioenergia SA      9.25    71      1/24/2020    BR       USD
Argentina
Bonar Bonds       23.00    5.5     9/10/2015    AR       ARS
BCP Finance Co     2.15   61.25                 KY       EUR
Newland
International
Properties Corp    9.5     32      7/3/2017     PA       USD
BA-CA Finance
Cayman 2 Ltd       2.03    62.31                KY       EUR
Odebrecht Oil
& Gas Finance
Ltd                7       69                   KY       USD
PDVSA              9       44     11/17/2021    VE       USD
Honghua Group
Ltd                7.45    58.5    9/25/2019    CN       USD
Argentine Bonad
Bonds              2.4     68      3/18/2018    AR       USD
Automotores
Gildemeister SA    8.25    60      5/24/2021    CL       USD
PDVSA              9.75    43      5/17/2035    VE       USD
Automotores
Gildemeister SA    6.75    59.5    1/15/2023    CL       USD
ESFG
International
Ltd                5.753    0.68                KY       EUR
Greenfields
Petroleum Corp     9        20     5/31/2017    US       CAD
USJ Acucar e
Alcool SA          9.87     73     11/9/2019    BR       USD
CSN Islands
XII Corp           7        73.99               BR       USD
SMU SA             7.75     75.25   2/8/2020    CL       USD
Mongolian
Mining Corp        8.875    66.5    3/29/2017   MN       USD
Banco do Brasil
SA/Cayman          6.25     74                  KY       USD
Argentina Bocon    2        42.288  1/3/2016    AR       ARS
Venezuela
TICC Bond          6.25     73.195  4/6/2017    VE       USD
Hidili Industry
International
Development Ltd    8.625    75      11/4/2015   CN       USD
Cia Energetica
de Sao Paulo       9.75     72.87    1/15/2015  BR       BRL
Venezuela TICC
Bond               5.25     52.627   3/21/2019  VE       USD
Newland
International
Properties Corp    9.5      47       7/3/2017   PA       USD
Empresa
Distribuidora
Y Comercializadora
Norte              9.75     72     10/25/2022   AR       USD
Banif Finance
Ltd                1.449                        KY       EUR
BPI
Capital
Finance Ltd        2.63     39.5               KY       EUR
Cia Cervecerias
Unidas SA          4        51.90  12/1/2024   CL       CLP
Banco BPI
SA/Cayman Islands  4.15     71.37  11/14/2035  KY       EUR
Argentina Bond     5.83     14     12/31/2033  AR       ARS
Cia Sud
Americana
de Vapores SA      6.4      58.45  10/1/2022   CL       CLP
Venezuela TICC
Bond               9.12     74.29   9/15/2017  VE       USD
Venezuela Bond     9.25     48      9/15/2027  VE       USD
Ruta del Bosque
Sociedad
Concesionaria SA   6.3      69.2    3/15/2021  CL       CLP
Talca Chillan
Sociedad
Concesionaria SA   2.75     47.78  12/15/2019  CL       CLP
Venezuela Bond    11.75     50.5   10/21/2026  VE       USD
Provincia
de Rio Negro       1.6716   72      5/4/2024   AR       ARS
Provincia
Corrientes         0.0204    8      1/1/2016   AR       ARS
Provincia del
Chaco              4        61.25  12/4/2026   AR       USD
Decimo Primer
Fideicomiso de
Bonos de
Prestamos
Hipotecar         4.54       59    10/25/2041  PA       USD
Decimo Primer
Fideicomiso de
Bonos de
Prestamos
Hipotecar          6         70.8  10/25/2041  PA       USD
Empresa de los
Ferrocarriles
del Estado         6.5       69.91   1/1/2026  CL       CLP

                            ***********


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


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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
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

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

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


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