TCRLA_Public/160720.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

            Wednesday, July 20, 2016, Vol. 17, No. 142


                            Headlines



C A Y M A N  I S L A N D S

ADA EMERGING: Creditors' Proofs of Debt Due Aug. 8
ARC FUND: Creditors' Proofs of Debt Due Aug. 17
AVOCET LEASING: Commences Liquidation Proceedings
B-C CIG HOLDINGS: Commences Liquidation Proceedings
CALEDONIAN SECURITIES: Creditors' Meeting Set for Aug. 3

GOLDMAN SACHS: Commences Liquidation Proceedings
GS LIQUIDITY: Commences Liquidation Proceedings
OC WORD: Commences Liquidation Proceedings
PINNACLE MEDICAL: Commences Liquidation Proceedings
RIVERSIDE EQUITY: Creditors' Proofs of Debt Due Aug. 18

RIVERSIDE FRONTIER: Creditors' Proofs of Debt Due Aug. 18
ROONEY LTD: Creditors' Proofs of Debt Due Aug. 18
WESTLAND INSURANCE: Creditors' Proofs of Debt Due Sept. 5


D O M I N I C A N   R E P U B L I C

BANCO DE BOGOTA: Fitch Maintains IDRs on Rating Watch Negative
BANCOLOMBIA SA: Fitch Keeps Rating Watch Neg. on Int'l Ratings
DOMINICAN REPUBLIC: AMCHAMDR and OSAC Promote US Interests


H O N D U R A S

HONDURAS: S&P Revises Outlook to Pos. & Affirms 'B+/B' Ratings


J A M A I C A

JAMAICA: Make CSME work, Mahfood Urges
JAMAICA: IMF Appoints New Resident Representative


P E R U

INTERCORP PERU: S&P Raises CCR to 'BB+'; Outlook Stable


P U E R T O    R I C O

INDUSTRIAS VASSALLO: Court Dismisses Suit vs. Peter Vasquez Massa
INVERSIONES ARAXI: Hires Juan A. Ruiz Reyes as Accountant
POPULAR (BPOP): Fitch's BB- IDR Reflects Commonwealth's Challenge
PUERTO RICO: Rubio, Pierluisi Among Appointees to Task Force
SOUTH CARIBBEAN BLOCK: Hires MRO Attorneys as Counsel


                            - - - - -


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


ADA EMERGING: Creditors' Proofs of Debt Due Aug. 8
--------------------------------------------------
The creditors of Ada Emerging Markets Fund, Ltd. are required to
file their proofs of debt by Aug. 8, 2016, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on June 24, 2016.

The company's liquidator is:

          Mourant Ozannes
          Sachin Shah
          c/o Jo-Anne Maher
          94 Solaris Avenue, Camana Bay
          P.O. Box 1348 Grand Cayman KY1-1108
          Cayman Islands
          Telephone: (345) 814-9255
          Facsimile: (345) 949-4647


ARC FUND: Creditors' Proofs of Debt Due Aug. 17
-----------------------------------------------
The creditors of ARC Fund Ltd. are required to file their proofs
of debt by Aug. 17, 2016, to be included in the company's dividend
distribution.

The company commenced liquidation proceedings on June 24, 2016.

The company's liquidator is:

          Intertrust SPV (Cayman) Limited
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9005
          Cayman Islands
          c/o Kim Charaman
          Telephone: (345) 943-3100


AVOCET LEASING: Commences Liquidation Proceedings
-------------------------------------------------
On June 27, 2016, the sole shareholder of Avocet Leasing 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:

          Phang Thim Fatt
          8 Shenton Way #18-01
          Singapore 068811


B-C CIG HOLDINGS: Commences Liquidation Proceedings
---------------------------------------------------
At an extraordinary meeting held on July 7, 2016, the shareholders
of B-C CIG Holdings 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:

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


CALEDONIAN SECURITIES: Creditors' Meeting Set for Aug. 3
--------------------------------------------------------
The creditors of Caledonian Securities Limited will hold their
meeting on Aug. 3, 2016, at 10:00 a.m.

The company's liquidator is:

          Ms. Claire Loebell
          c/o Gerard Somers
          Ernst & Young Ltd.
          62 Forum Lane, Camana Bay
          P.O. Box 510 Grand Cayman KY1 -1106
          Cayman Islands
          e-mail: gerard.somers@ky.ey.com


GOLDMAN SACHS: Commences Liquidation Proceedings
------------------------------------------------
At an extraordinary meeting held on July 7, 2016, the shareholders
of Goldman Sachs Islamic Products 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:

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


GS LIQUIDITY: Commences Liquidation Proceedings
-----------------------------------------------
At an extraordinary meeting held on July 7, 2016, the shareholders
of GS Liquidity Products 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:

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


OC WORD: Commences Liquidation Proceedings
------------------------------------------
On June 27, 2016, the sole shareholder of OC Word 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:

          Gail Steiner
          c/o Standard General L.P.
          767 Fifth Avenue, 12th Floor
          New York
          New York 10153
          United States of America
          Telephone: +1 (212) 257 4728


PINNACLE MEDICAL: Commences Liquidation Proceedings
---------------------------------------------------
On June 17, 2016, the sole shareholder of Pinnacle Medical
Protective SPC 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:

          Graham Robinson
          c/o Tanya Armstrong
          Telephone: (345) 946-0820
          Facsimile: (345) 946-0864
          P.O. Box 2499, George Town
          Grand Cayman KYl-1104
          Cayman Islands


RIVERSIDE EQUITY: Creditors' Proofs of Debt Due Aug. 18
-------------------------------------------------------
The creditors of Riverside Equity Strategies Fund SPC are required
to file their proofs of debt by Aug. 18, 2016, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on June 28, 2016.

The company's liquidator is:

          Peter Goulden
          Mourant Ozannes Cayman Liquidators Limited
          Attorneys-at-Law for the Company
          Reference: NDL
          Telephone: (+1) 345 949 4123
          Facsimile: (+1) 345 949 4647; or

          Mourant Ozannes Cayman Liquidators Limited
          Reference: Peter Goulden
          Telephone: (+1) 345 949 4123
          Facsimile: (+1) 345 949 4647
          94 Solaris Avenue, Camana Bay
          P.O. Box 1348 Grand Cayman KY1-1108
          Cayman Islands


RIVERSIDE FRONTIER: Creditors' Proofs of Debt Due Aug. 18
---------------------------------------------------------
The creditors of Riverside Frontier Opportunities Fund are
required to file their proofs of debt by Aug. 18, 2016, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on June 28, 2016.

The company's liquidator is:

          Peter Goulden
          Mourant Ozannes Cayman Liquidators Limited
          Attorneys-at-Law for the Company
          Reference: NDL
          Telephone: (+1) 345 949 4123
          Facsimile: (+1) 345 949 4647; or

          Mourant Ozannes Cayman Liquidators Limited
          Reference: Peter Goulden
          Telephone: (+1) 345 949 4123
          Facsimile: (+1) 345 949 4647
          94 Solaris Avenue, Camana Bay
          P.O. Box 1348 Grand Cayman KY1-1108
          Cayman Islands


ROONEY LTD: Creditors' Proofs of Debt Due Aug. 18
-------------------------------------------------
The creditors of Rooney Ltd are required to file their proofs of
debt by Aug. 18, 2016, to be included in the company's dividend
distribution.

The company commenced liquidation proceedings on June 28, 2016.

The company's liquidator is:

          Colin Reid
          Wardour Management Services Limited
          Telephone: (345) 945-3301
          Facsimile: (345) 945-3302
          P.O. Box 10147 Grand Cayman KY1-1002
          Cayman Islands


WESTLAND INSURANCE: Creditors' Proofs of Debt Due Sept. 5
---------------------------------------------------------
The creditors of Westland Insurance Company are required to file
their proofs of debt by Sept. 5, 2016, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on May 5, 2016.

The company's liquidator is:

         Michael Gibbs
         P.O. Box 10027 Grand Cayman KY1-1001
         Cayman Islands
         Telephone: (345) 946 2100 (Main)
         Facsimile: (345) 946 2110



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


BANCO DE BOGOTA: Fitch Maintains IDRs on Rating Watch Negative
--------------------------------------------------------------
Fitch Ratings has maintained the Rating Watch Negative on Banco de
Bogota S.A.'s (Bogota) Viability Rating (VR) and Issuer Default
Ratings (IDRs). Fitch has also maintained the Negative Watch on
the following related entity ratings:

-- Grupo Aval Acciones y Valores S.A. (Grupo Aval) IDR of 'BBB';
-- Corporacion Financiera Colombiana S.A. (Corficolombiana) IDR
    of 'BBB+'.

At the same time, Fitch also affirmed other ratings for Bogota and
related entities that were not directly affected by the Watch
status.

The Rating Watch Negative has been maintained pending an in-depth
review of Bogota's capital optimization plans. Fitch will resolve
the Negative Watch after assessing the potential evolution of
Bogota's capital metrics within the context of the bank's overall
financial and business profile as well as its operating
environment.

KEY RATING DRIVERS
VIABILITY RATING (VR), IDRS, NATIONAL RATINGS AND SENIOR DEBT

BANCO DE BOGOTA

Bogota's ratings are highly influenced by its strong franchise and
generally sound and consistent financial metrics. In Fitch's view,
capital adequacy is tight, and will be the main focus of its
review to resolve the Negative Watch."

Capitalization was particularly affected by a change in accounting
standards to IFRS from Colgaap in December 2014, as well as the
significant depreciation of the local currency, which boosted
Bogota's $US-denominated risk-weighted assets (RWA) and goodwill
deductions from capital. Under IFRS, which provided new
revelations in the issuer's financial statements, Bogota's Fitch
Core Capital (FCC) ratio declined to 9.89% compared with 11.24%
under Colgaap as of December 2014, since the change in accounting
standards mainly affected goodwill and revaluations of fixed
assets treatment, among others. In 2015, the bank's FCC ratio
declined further to 8.84%, more than Fitch anticipated, as the
currency depreciated by 32%.

Grupo Aval and Bogota announced measures in June 2016 to reverse
the deterioration of the bank's capital base. Leasing Bogota
Panama, which is the vehicle that carries BAC-Credomatic's
investments, will be merged with Banco de Bogota in Colombia. This
operation, which is pending approval from the Panamanian and
Colombian regulators, will result in less volatility in goodwill
and tax savings. The group also decided that Corficolombiana will
be consolidated (for accounting purposes) directly under Grupo
Aval instead of with Bogota in order to strengthen the capital
position of the bank and focus its consolidated management in the
financial business. This change, which was implemented during June
2016, brings an immediate positive impact because the RWA and
intangibles from infrastructure and 4G concessions will no longer
detract from Bogota's capitalization.

According to Fitch's initial projections, these actions along with
a deceleration in balance sheet growth, sustained internal capital
generation, and a moderate dividend payout policy, will lead to a
recovery of Bogota's capitalization ratios to a level more
commensurate with its current rating level and similarly rated
international peers in the short term. Fitch's base case scenario
of less dynamic economic growth and a stabilizing exchange rate
also augurs well for the rebuilding of capital ratios. After
appraising the real impact of the above-mentioned measures and the
bank's actual performance, Fitch will re-assess its Negative Watch
on Bogota's ratings.

Bogota is Colombia's second largest bank by assets (15.2% market
share at December 2015) and the largest bank by assets in Central
America (8.4% market share). Additionally, the bank's Central
American operations contribute to a diversified revenue base, a
balanced credit portfolio and critical credit card and retail
know-how.

Bogota's conservative credit and strong risk management policies,
amidst a challenging economic environment in Colombia (as well as
relative stability in Central America) resulted in very good asset
quality (90-day past-due loans [PDLs] remained stable at 1.47% at
March 2016) which has remained fairly stable over time and is
complemented by sufficient loan loss reserves (1.6x its PDL
portfolio).

Overall profitability improved and remained quite robust with an
ROAA at 1.93%, a level that compares well with that of similarly
rated peers. Future growth is expected to be moderate, with loans
increasing 10%-12%. Margins should be supported by rising interest
rates and continued expansion into retail. Operating expenses
should stabilize in relative terms, while the cost of credit is
expected to grow due to changes in the economic cycle in Colombia
while in Central America no changes are expected. Profitability
should remain stable with Operating ROAA expected to remain close
to 3%, with Operating ROAE inching toward mid-20%. These moderate
profitability levels reflect a more balanced and mature portfolio
and growth.

Bogota enjoys a wide customer base and relatively lower funding
costs compared to its peers. Customer deposits fund Bogota's loan
portfolio in its entirety and the bank has ample access to
domestic and international capital markets. Furthermore, the bank
has the full support of its shareholders, as illustrated during
the acquisition of BAC and the subsequent purchase of Grupo
Reformador and BBVA Panama, which prompted timely capital
injections from Grupo Aval.

GRUPO AVAL

Grupo Aval's ratings are driven by the business and financial
profile of its subsidiaries, particularly its main operating
subsidiary, Bogota. As such, Fitch has maintained the Rating Watch
Negative on Grupo Aval's Long-Term IDRs. In addition, low double
leverage, moderate debt, adequate cash flow metrics and a sound
competitive position in multiple markets also support Grupo Aval's
ratings.

On a consolidated basis, asset quality remains strong, reflecting
diversification and the specific strengths within each bank. On an
unconsolidated basis, Grupo Aval's double leverage is moderate
(1.04x at December 2015) and is expected to remain fairly stable
unless the group embarks on rapid asset or inorganic growth, which
is a scenario not expected by Fitch in the short term.

GRUPO AVAL LIMITED

The ratings for Grupo Aval Limited's senior secured debt are
aligned with those of Grupo Aval, as this entity guarantees the
senior bonds issued by the former.

BANCO DE OCCIDENTE

Occidente's VR, IDRs and National ratings reflect its solid
capital ratios, low-risk and diversified business model, and
stable though moderately concentrated funding. Fitch also
considered potential profitability challenges within a less benign
economic environment, the bank's moderate franchise, and its role
as one of Grupo Aval's most important subsidiaries.

Consistent capital generation and moderate dividend policies
underpin Occidente's capital metrics. The bank's Fitch Core
Capital Ratio (FCC) ratio has declined over the past three years
as asset growth exceeded capital formation. Occidente's FCC ratio
decreased to 12.68% at December 2015 while tangible equity-to-
assets decreased to 10.97%, though this level continues to exceed
that of its domestic peers. In Fitch's view, Occidente's capital
ratios are adequate given the bank's strong loan loss reserves and
loan quality as well as its stable earnings generation.

Occidente's business model is largely based on commercial banking,
with an increasing participation of low-risk consumer banking
products. Occidente has become Aval's vehicle to develop its
leasing business in Colombia, where it had reached a market share
of 18%, above its natural market share of about 6.3% by assets at
end-December 2015. Occidente's conservative credit and risk
management policies underpin its good asset quality indicators.
The bank's impaired loans (i.e. greater than 90 days past due)-to-
gross loans ratio has remained stable over the past five years at
around 1.5% thanks to its commercial focus, minimal growth in PDLs
and consistent charge-offs. Sufficient loan loss reserves (2x its
90-day PDL portfolio) also complement this metric.

As a medium-sized bank with ample presence throughout the country,
Banco de Occidente boasts a stable and ample depositor base.
Deposits come primarily from institutional and public investors,
resulting in higher funding costs and depositor concentrations
compared to banks with a wider retail deposit base. Fitch believes
that Occidente's less-diversified company profile relative to
other larger Colombian banks could be a potential limitation to
future rating upgrades.

Financial activity rather than non-recurring income supported
Occidente's financial performance in 2015. Corporate
reorganization and the resulting non-recurring income from the
sale of two-thirds of Occidente's stake in Corficolombiana (one of
Grupo Aval's subsidiaries) to the holding company (Grupo Aval)
boosted revenues in 2014. Interest margins, consistent with the
bank's business model, and the sustainable generation of non-
interest revenues support normalized operations. However, changes
in macroeconomic fundamentals, a less liquid market and the
effects of central bank policy measures to control inflation could
increase operational costs in 2016. The bank's operating
profitability weakened to 1.5% (YE2015) from an average of 2.1%
(2012-2014) but remains good compared with its closest
international peers.

CORFICOLOMBIANA

Corficolombiana's ratings reflect the potential support it would
receive from its main shareholder, Banco de Bogota, should it be
required. Fitch has maintained Corficolombiana's IDRs on Rating
Watch Negative, in line with its main shareholder's ratings.
Bogota's willingness to support the entity remains unchanged as
long as the bank remains Corficolombiana's main shareholder, but
the ability to do so could be affected in the event of a downgrade
of Bogota's ratings.

In Fitch's opinion, Corficolombiana's long-term equity investments
and active treasury activity make it a core part of the wider
Grupo Aval businesses. As such, the entity allows Colombia's
largest financial conglomerate to have a foothold in the non-
financial sector and a key gauge of the local capital market.

Fitch said, "This review takes into account Grupo Aval's decision
that Corficolombiana will be consolidated (for accounting
purposes) directly under Grupo Aval instead of with Bogota. In our
view this change, which was implemented during June 2016, has no
impact on Corficolombiana's ratings, since there is no change on
ownership and Bogota continues to be its main shareholder."

CREDOMATIC INTERNATIONAL CORPORATION (CIC)

CIC's IDRs reflect the support it would receive from its parent,
Banco de Bogota, should it be required. Fitch has maintained CIC's
IDRs on Rating Watch Negative in line with its parent's ratings.
Bogota's willingness to support the entity remains unchanged, but
its ability to do so could be affected in the event of a downgrade
of Bogota's ratings.

SUPPORT RATING AND SUPPORT RATING FLOOR

BANCO DE BOGOTA

Given its size and systemic importance, Bogota is likely to
receive support from Colombia's government, should it be required.
Colombia's ability to provide such support is reflected in its
sovereign rating ('BBB'/ Outlook Stable') and drives Bogota's
support floor of 'BBB-'.

GRUPO AVAL

As the focus of regulators is on protecting banks' depositors, not
their shareholders, it is not likely that they would support a
bank holding company. Hence Grupo Aval's SR and SRF are rated '5'
and 'No floor', respectively.

CORFICOLOMBIANA AND BANCO DE OCCIDENTE
Given their importance to the strategy and business of their
parents, support for these entities would come from Banco de
Bogota and Grupo Aval, respectively. The parents' ability to
support their subsidiaries is reflected in their respective
ratings of 'BBB+' and 'BBB'.

SUBORDINATED DEBT

BANCO DE BOGOTA
Bogota's subordinated debt is rated one notch below the bank's VR
and therefore mirrors the Rating Watch Negative on its VR. The
bonds do not have equity-like features that would merit equity
credit, as based on Fitch's criteria. The notching reflects higher
expected losses in the case of liquidation but no additional
notching for non-performance, given its gone concern
characteristics (plain-vanilla subordinated debt).]

RATING SENSITIVITIES

VR, IDRS, NATIONAL RATINGS, SENIOR AND SUBORDINATED DEBT

BOGOTA
Bogota's Long-Term IDRs and VR are already above the sovereign.
Therefore, there is limited upside potential for these ratings, as
the bank's capitalization metrics will continue to compare
unfavorably to international peers even if full implementation of
Bogota's capital optimization plan is achieved. However,
significant progress on the bank's capital optimization plan which
leads to the restoration of its capital buffers could resolve the
Negative Watch given the bank's overall financial and business
profile.

On the other hand, a dismal performance (ROAA below 1.5%) and/or
severely weaker asset quality that pressures loan loss provisions
and erode the bank's capital/reserves cushion (FCC consistently
below 9.5%) could lead to a ratings downgrade. Senior and
subordinated debt ratings will move in tandem with Bogota's IDR'.

Fitch expects to resolve the Rating Watch Negative on Bogota's
IDRs and VR once it has completed an in-depth review of the
decisions taken in June and described above.

GRUPO AVAL and GRUPO AVAL LIMITED
Grupo Aval's IDR would remain one notch below Bogota's and would
move in tandem with any rating actions on its main operating
subsidiary. However, the relativity between these two entities
could also be affected in the event of consistent material
changes, positive or negative, in Grupo Aval's double-leverage
metrics or in the dividend flows from the operating companies that
affects its debt coverage ratios.

The ratings for Grupo Aval Limited's senior secured debt would
move in line with Grupo Aval's IDRs.

CORFICOLOMBIANA AND CIC
Corficolombiana's and CIC's IDRs are support-driven, and therefore
[these ratings would mirror any changes in its main shareholder's
IDRs].

OCCIDENTE
Occidente's Rating Outlook is Stable reflecting Fitch's
expectation of no substantial changes in the bank's financial
profile over the rating horizon. Nevertheless, the bank's VR,
IDRs, and National ratings could be pressured if its performance
deteriorates (Operating ROAA below 1%) or its capital weakens (FCC
consistently below 10%), though this is not Fitch's base case
scenario.

While there is limited upside potential given the current level of
the bank's and the sovereign's ratings, in the event of a
sovereign upgrade, Occidente's VR and IDR could benefit from a
reduction in deposit concentration and more diversified funding,
combined with the maintenance of its overall solid asset quality,
capital and performance metrics over the medium term].

SUPPORT RATING AND SUPPORT RATING FLOOR

The SR is potentially sensitive to any change in assumptions as to
the propensity or ability of the Republic of Colombia or the
entity's parent to provide timely support to the bank. Bogota's
and Grupo Aval's SR and SRF would be affected if Fitch changes its
assessment of the government's ability and/or willingness to
support the bank.

Corficolombiana's and Banco de Occidente's SR would be affected if
Fitch changes its assessment of their respective parents'
willingness and/or ability to provide them support.

Fitch has taken the following rating actions:

Banco de Bogota
-- Long-Term Foreign Currency Issuer Default Rating (IDR) 'BBB+',
    Rating Watch Negative maintained;
-- Short-Term Foreign Currency IDR 'F2', Rating Watch Negative
    maintained;
-- Long-Term Local Currency IDR at 'BBB+', Rating Watch Negative
    maintained;
-- Short-Term Local Currency IDR at 'F2', Rating Watch Negative
    maintained;
-- Viability rating at 'bbb+', Rating Watch Negative maintained;
-- Senior unsecured debt rating of 'BBB+', Rating Watch Negative
    maintained;
-- Subordinated debt rating of 'BBB', Rating Watch Negative
    maintained;
-- Support rating affirmed at '2';
-- Support rating floor affirmed at 'BBB-';

Grupo Aval
-- Long-Term Foreign Currency Issuer Default Rating (IDR) 'BBB',
    Rating Watch Negative maintained;
-- Short-Term Foreign Currency IDR affirmed at 'F3';
-- Long-Term Local Currency IDR 'BBB', Rating Watch Negative
    maintained;
-- Short-Term Local Currency IDR affirmed at 'F3';
-- Support rating affirmed at '5';
-- Support rating floor affirmed at 'NF';

Grupo Aval Limited
-- Senior unsecured guaranteed debt issued by Grupo Aval Ltd.
    'BBB', Rating Watch Negative maintained.

Corficolombiana
-- Long-Term Foreign Currency IDR 'BBB+', Rating Watch Negative
    maintained;
-- Long-Term Local Currency IDR 'BBB+', Rating Watch Negative
    maintained;
-- Short-Term Foreign Currency IDR 'F2', Rating Watch Negative
    maintained;
-- Short-Term Local Currency IDR 'F2', Rating Watch Negative
    maintained;
-- Support Rating affirmed at '2';
-- National Scale Long-Term Rating affirmed at 'AAA(col)';
    Outlook Stable;
-- National Scale Short-Term Rating affirmed at 'F1+(col)'.

Occidente
-- Long-Term Foreign Currency IDR affirmed at 'BBB', Outlook
    Stable;
-- Long-Term Local Currency IDR affirmed at 'BBB', Outlook
    Stable;
-- Short-Term Foreign Currency IDR affirmed at 'F3';
-- Short-Term Local Currency IDR affirmed at 'F3';
-- Viability rating affirmed at 'bbb';
-- Support Rating affirmed at '2';
-- National Scale Long-Term Rating affirmed at 'AAA(col)';
    Outlook Stable;
-- National Scale Short-Term Rating affirmed at 'F1+(col)'.

CIC
-- Long-Term Foreign Currency IDR 'BBB+', Rating Watch Negative
    maintained;
-- Short-Term Foreign Currency IDR 'F2', Rating Watch Negative
    maintained;
-- Support Rating affirmed at '2';


BANCOLOMBIA SA: Fitch Keeps Rating Watch Neg. on Int'l Ratings
--------------------------------------------------------------
Fitch Ratings has maintained Bancolombia S.A. and certain foreign
subsidiaries' selected international ratings on Rating Watch
Negative. At the same time, Fitch has affirmed other Bancolombia
ratings, as well as some of its subsidiaries', which are not
directly affected by the watch status. A full list of rating
actions is at the end of this release.

Affected related subsidiaries are:

-- Bancolombia Panama S.A. (BP)
-- Bancolombia Puerto Rico International Inc. (BPR)
-- Banistmo S.A.

The ratings remain on Rating Watch Negative pending further review
of the bank's recapitalization plans. Fitch will resolve the
Rating Watch Negative after assessing the evolution of
Bancolombia's capital metrics for consistency with the current
rating levels.

KEY RATING DRIVERS - BANCOLOMBIA
IDRS, VR, NATIONAL RATINGS AND SENIOR DEBT RATINGS
Bancolombia's capital ratios declined in 2015 due to changes in
the accounting standards (IFRS was introduced starting 2015), the
significant depreciation of the local currency, which boosted its
$US denominated risk-weighted assets and $US denominated goodwill
deduction from Fitch Core Capital (FCC), as well as the
consolidation of Grupo Agromercantil Holding as a result of an
increase in Bancolombia's majority stake. While Fitch expected a
slight decline in the bank's capital ratios due to continued
growth, the FCC ratio fell to 7.16% at March 2016 (December 2014:
10.1%), a metric that is not consistent with the current rating
levels.

Moderate growth, expected higher margins, increased retained
earnings and Colombian peso stability are the main assumptions for
Bancolombia recapitalization plan. According to Fitch's
projections, Bancolombia's slower growth and sustained internal
capital generation, could aid in rebuilding its capital ratios
over the next year amid a stable economic environment and less
volatile exchange rates, which is Fitch's baseline scenario.
Nevertheless, Fitch does not expect capitalization to return to
levels reported in 2014 during this period.

In 2015, profitability ratios were slightly better than in 2014
given resilient margins, significant loan growth, and the 32%
depreciation of the Colombian peso that resulted in foreign
exchange gains and significant gains on forward contracts in
foreign currency. Operational profits will keep increasing
steadily, allowing the bank to boast competitive profitability
ratios.

Asset quality indicators have broadly been stable through the
cycles, in part benefiting from rapid loan growth. However, a few
large exposures in the commercial sector led to a modest
deterioration over 2015. Given Bancolombia's conservative credit-
risk culture, Fitch expects the bank to maintain asset-quality
ratios in line with its current rating level and similar to
regional peer medians. Nevertheless, loan quality indicators will
be slightly weaker than other large Colombian banks.

Bancolombia's successful franchise, distribution network and its
reputation as a longstanding, conservative institution, support a
well-diversified, stable and relatively low-cost funding base. In
addition, Bancolombia has proven access to local and global
capital and debt markets. Accordingly, the loan-to-deposits ratio
reached 124% at December 2015, as Bancolombia actively uses
capital markets to better match its assets and liabilities tenor
profile.

Bancolombia boasts a well-balanced business with loans diversified
by geography, industry, product and obligor. The bank has few
undesired concentrations, robust asset quality, ample reserves and
sufficient liquidity.

SUPPORT RATING AND SUPPORT RATING FLOOR
Fitch has assigned a Support Rating of '2' and Support Rating
Floor of 'BBB-', reflecting the agency's estimation of a high
probability of sovereign support should it be required, given the
bank's systemic importance. The ability of the sovereign to
provide support is based in its 'BBB'/'BBB+'/Outlook Stable IDRs.

SUBORDINATED DEBT
Bancolombia's subordinated debt is rated one notch below its IDR
to reflect higher expected losses in case of liquidation but no
additional notching for non-performance, given its gone concern
characteristics.

KEY RATING DRIVERS - BP, BPR AND BANISTMO

IDRS, NATIONAL RATINGS and SENIOR DEBT
BP, BPR and Banistmo's IDRs and BPR's national ratings reflect the
potential support they would receive from their main shareholder,
Bancolombia S.A., should it be required. Therefore, these
entities' IDRs and BP's senior debt are aligned with those of
Bancolombia and mirror the Rating Watch Negative of their parent's
IDRs.

SUPPORT RATINGS
Fitch believes Bancolombia's willingness to support BP, BPR and
Banistmo is substantial should it be required, given that are core
in the parent's business strategy and regional expansion,
underpinning a support rating of '2'. Its ability to support these
entities is reflected in Bancolombia's IDR of 'BBB+'.

RATING SENSITIVITIES - BANCOLOMBIA
IDRS, VR, AND SENIOR DEBT
The bank's IDR, VR and senior debt ratings are sensitive to a
change in Fitch's assumptions regarding capitalization. While
there is no upside potential given the recent deterioration in the
bank's capital position, Bancolombia's ratings could be affirmed
if the bank can successfully restore its capital buffers. As
Bancolombia's IDRs, VR and senior debt ratings are above those of
the sovereign, any negative rating action on the sovereign would
also lead to a similar action on Bancolombia's ratings.

An unexpected deterioration of Bancolombia's impaired loans ratio
above 4% or a significant reduction of its ample loan loss
coverage may also trigger a negative rating action on its VR and
IDRs. A dismal performance (operating ROAA consistently below
1.5%) and/or severely weaker asset quality that pressures loan
loss provisions and further erodes the bank's capital (FCC ratio
sustained below 10%) could also lead to a downgrade of its VR and
IDRs.

SUPPORT RATING AND SUPPORT RATING FLOOR
Bancolombia's Support and Support Rating Floor ratings would be
affected by a change in Colombia's ability or willingness to
support the bank.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES
The ratings of Bancolombia's subordinated debt would move in line
with the bank's IDR.

NATIONAL RATINGS
Bancolombia's national scale ratings are not affected due to
Rating Watch Negative on IDRs, because Fitch's baseline scenario
is that a potential downgrade in the Bancolombia's ratings, if
any, would be limited to one notch, a scenario that would not
alter such national scale ratings.

RATING SENSITIVITIES - BP, BPR and Banistmo
IDRs
The IDRs of these entities are support-driven and aligned to its
parent's. Therefore, these ratings would mirror any changes in
Bancolombia's IDRs.

NATIONAL RATINGS
The national scale ratings of these entities are not affected due
to Bancolombia's Rating Watch Negative, because Fitch's baseline
scenario is that a potential downgrade in the Bancolombia's
ratings, if any, would be limited to one notch, a scenario that
would not alter such national scale ratings.

SENIOR AND SUBORDINATED DEBT
Senior and subordinated debt could be downgraded in the same
magnitude of a potential downgrade in Bancolombia's IDRs.

Fitch has maintained the following ratings on Rating Watch
Negative:

Bancolombia
-- Long-Term Foreign Currency IDR 'BBB+';
-- Short-Term Foreign Currency IDR 'F2';
-- Long-Term Local Currency IDR 'BBB+';
-- Short-Term Local Currency IDR at 'F2';
-- Viability Rating 'bbb+';
-- Senior unsecured debt 'BBB+';
-- Subordinated debt 'BBB'.

Bancolombia Panama
-- Long-Term IDR 'BBB+';
-- Short-Term IDR 'F2';
-- Long-Term Deposits 'BBB+';
-- Short-Term Deposits at 'F2'.

Bancolombia Puerto Rico
-- Long-Term IDR 'BBB+';
-- Short-Term IDR at 'F2';

Banistmo
-- Long-Term IDR 'BBB+';
-- Short-Term IDR at 'F2'.

Fitch has affirmed the following ratings:

Bancolombia
-- National long-term rating at 'AAA(col)', Outlook Stable;
-- National short-term rating at 'F1+';
-- Support rating at '2';
-- Support rating floor at 'BBB-';
-- COP1.5 billion program senior unsecured issuances' national
    rating affirmed at 'AAA(col)';
-- COP1 billion program subordinated issuances' national rating
    affirmed at 'AA+(col)';
-- COP2 billion program senior unsecured issuances' national
    rating affirmed at 'AAA(col)'.
-- COP3 billion program senior unsecured issuances' national
    rating affirmed at 'AAA(col)';
-- COP3 billion program subordinated issuances' national rating
    affirmed at 'AA+(col)'.

Bancolombia Panama
-- Support rating at '2';

Bancolombia Puerto Rico
-- National long-term rating at 'AAA(col)', Outlook Stable;
-- National short-term rating at 'F1+';
-- Support rating at '2'.


DOMINICAN REPUBLIC: AMCHAMDR and OSAC Promote US Interests
----------------------------------------------------------
Dominican Today reports that the American Chamber of Commerce of
the Dominican Republic (AMCHAMDR) and the Overseas Security
Advisory Council (OSAC) will collaborate to shore up Dominican
Republic's climate for United States investments and the safety of
American nationals and entities in the country.

Chamber president Gustavo Tavares and OSAC chairman Alain Astacio
signed the document in an activity with executives at AMCHAMDR
offices, according to Dominican Today.

"We have many opportunities and ample fertile field to join forces
and achieve greater results in the Dominican Republic. Direct
investment from the US to the RD has multiple and substantial
benefits to both countries such as employment, GDP growth and
standard of living. In addition, private investment will benefit,
and grows when there's security, stability and the rule of law,"
Tavares said in his brief speech, the report notes.

For Mr. Astacio, relations through talks and documentation of some
processes, activities and parameters as a first step in the
partnership rapprochement have great potential, the report relays.
"More than 3,500 companies and 18,000 specialists worldwide are
part of the OSAC.  This public-private partnership of the US
suitably complements AMCHAMDR's platform, collaborating
exponentially with important local government agencies,
contributing to Dominican Republic's climate of security and
prosperity," he added.

In an emailed statement, the business organization said the
Memorandum of Understanding seeks to bolster the capacities,
talents and institutions related to AMCHAMDR and OSAC, "with a
view to strengthening the ways and mechanisms for the Dominican
Republic and the United States to come out stronger together," the
report adds.

As reported in the Troubled Company Reporter-Latin America on
July 1, 2016, Moody's Investors Service has changed the outlook on
the Dominican Republic's long term issuer and debt ratings to
positive from stable. The ratings have been affirmed at B1.



===============
H O N D U R A S
===============


HONDURAS: S&P Revises Outlook to Pos. & Affirms 'B+/B' Ratings
--------------------------------------------------------------
S&P Global Ratings revised its outlook on the Republic of Honduras
to positive from stable.  S&P also affirmed its 'B+/B' long- and
short-term sovereign credit ratings on Honduras.  In addition, S&P
affirmed its 'BB-' transfer and convertibility assessment.

                             RATIONALE

S&P's outlook revision reflects that sustained fiscal improvement,
including restructuring the energy sector, and favorable economic
growth could improve Honduras' fiscal flexibility over the next
two years.  Successful adherence to the benchmarks laid out in
Honduras' three-year program with the International Monetary Fund
(IMF), combined with continued GDP growth, could strengthen public
finances by helping to contain the expected annual increase in
government debt, boosting fiscal flexibility.

The ratings on Honduras reflect its weak political institutions,
low-income economy, and exchange rate rigidities that constrain
monetary policy.  S&P expects that additional revenue collection
efficiency, along with energy-sector restructuring, will contain
Honduras' general government fiscal deficit to around 3.5% of GDP
over the next two years.  That, along with a modest increase in
economic growth, should help keep net general government debt
about 36% of GDP over the same period.  S&P forecasts that real
GDP growth could reach 3.6% in 2016 and approach 3.7% over the
next two years (equivalent to 2% per capita GDP growth), similar
to the 3.6% growth in 2015.

The implementation of revenue and spending measures since 2014 has
reduced the government's fiscal deficit.  The government has also
advanced with reforms in the electricity sector, restructuring the
National Electric Energy Company (ENEE).  The reforms reduced
ENEE's fiscal cost to the central government budget to 0.3% of GDP
in 2015 from 1.3% in the previous year.  S&P expects that revenue
collection efficiency and spending controls, which will be
reinforced by the recently enacted Fiscal Responsibility Law,
along with energy-sector restructuring, will contain Honduras'
general government fiscal deficit to around 3.5% of GDP over the
next two years.  Based on this, net general government debt would
stabilize around 36% of GDP in 2017-2018.

The combination of low oil prices, high remittances, and continued
implementation of fiscal consolidation could support a further
reduction in Honduras' current account deficit (CAD) to 6% of GDP
in 2016 and 2017.  Honduras' CAD continued to improve in 2015,
declining to 6.41% of GDP from 7.4% of GDP in 2014 and a record-
high 9.6% in 2013.  S&P estimates that the country's gross
external financing needs would average 94% of current account
receipts and usable reserves over the next two years, slightly
below the 95% of 2015.  As the economic program with the standby
arrangement signed with the IMF remains on track, it will
reinforce investor confidence and continue supporting foreign
direct investment around 5.7% of GDP for the next two years,
largely funding the CAD.

Honduras' political institutions, including the system of checks
and balances among government branches, overall remain weak and
volatile.  Following the 2015 Supreme Court resolution that allows
presidential reelection, new election laws that define term limits
and whether terms can be consecutive are still undefined.

Foreign exchange regime rigidities continue to constrain the
central bank's monetary policy.  Honduras has heavily managed its
exchange rate within a narrow band since 2011, although it has
been increasing.  Based on the Central Bank Monetary Program for
2016-2017, S&P expects a 6% nominal devaluation this year, with
inflation staying within target of 4.5% (plus or minus 1%),
somewhat above the 2.36% of 2015. Dollar-denominated assets and
liabilities in the banking system account for about one-third of
commercial bank claims and deposit liabilities, creating a
vulnerability to sharp movements in the exchange rate.

Honduras' economy is likely to grow 3.6% in 2016 and approach 3.7%
over the next two years, supported by recovered coffee production
and higher remittance inflows.  Large human development and
infrastructure needs continue to constrain Honduras' medium-term
growth potential.  Honduras is a low-income country with projected
per capita GDP of $2,350 in 2016.  Over the past five years, per
capita GDP has grown at a modest 1.3% per year on average.  Its
small, open economy is relatively diversified across agriculture,
low-value-added manufacturing factories, and tourism.

                              OUTLOOK

S&P expects broad continuity in economic policies following
national elections in late 2017.  S&P expects that, as has been
observed so far, the next administration will continue to
effectively implement the country's recent Fiscal Responsibility
Law, as well as consolidate recent gains in restructuring public-
sector enterprises like ENEE.

S&P could raise the ratings over the next 12-18 months if the
government continues to strengthen public finances and, including
through implementation of steps to strengthen fiscal revenues,
contains the expected annual increase in its debt.

In contrast, S&P could revise the outlook to stable if there is a
reversal in the recent trend of strengthening public finances, or
if unexpected political developments undermine investor confidence
and weaken the country's growth prospects.

Slippage in the implementation of energy reform, coupled with a
renewed deterioration in fiscal performance, could undermine
investor confidence and growth prospects.  Such negative trends
could, if they appear and persist, weaken public finances and lead
to a downgrade.

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 (see 'Related Criteria And Research'). At
the onset of the committee, the chair confirmed that the
information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

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

The committee agreed that the external assessment had improved and
that the debt assessment 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

Ratings Affirmed; Outlook Action
                                         To         From
Honduras (Republic of)
Sovereign Credit Rating                 B+/Pos/B   B+/Stable/B

Ratings Affirmed

Honduras (Republic of)
Transfer & Convertibility Assessment    BB-
Senior Unsecured                        B+



=============
J A M A I C A
=============


JAMAICA: Make CSME work, Mahfood Urges
--------------------------------------
RJR News reports that William Mahfood, President of the Private
Sector Organisation of Jamaica (PSOJ) is urging regional leaders
to stand together to make the CARICOM Single Market and Economy
(CSME) work.

Mr. Mahfood, who is to meet with Trinidad and Tobago's Prime
Minister on Tuesday to discuss that country's relationship with
Jamaica, told RJR News that CARICOM has not outgrown its
usefulness, according to RJR News.

Mr. Mahfood said the regional body offers its members
opportunities in the global marketplace which would not be gained
by each country acting on its own, the report relays.

"Each of our markets are (sic) fairly small . . . .  We don't
really mean a lot in the global marketplace, but when you join all
of us together, with 15 million people, we are much stronger...
and we have to have one way to operate as a single market, and as
a true force to reckon with," he said, the report notes.

Mr. Mahfood contends that, if CARICOM cannot survive, Jamaica will
still need to bond with other countries in the region, rather than
go it alone, the report adds.

                            *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2016, Fitch Ratings has upgraded Jamaica's Long-term
foreign and local currency IDRs to 'B' from 'B-' and revised the
Rating Outlooks to Stable from Positive.  In addition, Fitch
upgraded Jamaica's senior unsecured Foreign- and Local-Currency
bonds to 'B' from 'B-'.  The Country Ceiling has been affirmed at
'B' and the Short- Term Foreign-Currency IDR affirmed at 'B'.


JAMAICA: IMF Appoints New Resident Representative
-------------------------------------------------
RJR News reports that the International Monetary Fund (IMF) has
appointed Dr Constant Lonkeng Nguouana, as the new Resident
Representative to Jamaica.

Dr. Nguouana, who is from Cameroon, took up the position,
according to RJR News.

He replaces Dr. Bert van Selm who took up the post in May 2013.

Dr. Nguoana comes to Jamaica at the tail end of the current four
year IMF program, the report notes.

Under that program, Jamaica has so far managed to reduce its debt
to GDP from close to 150 per cent to 125 per cent. The country has
also managed to achieve macro-economic stability and now turn its
focus to growth after a period of austerity, the report adds.

                            *     *     *

As reported in the Troubled Company Reporter-Latin America on
Feb. 15, 2016, Fitch Ratings has upgraded Jamaica's Long-term
foreign and local currency IDRs to 'B' from 'B-' and revised the
Rating Outlooks to Stable from Positive.  In addition, Fitch
upgraded Jamaica's senior unsecured Foreign- and Local-Currency
bonds to 'B' from 'B-'.  The Country Ceiling has been affirmed at
'B' and the Short- Term Foreign-Currency IDR affirmed at 'B'.



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


INTERCORP PERU: S&P Raises CCR to 'BB+'; Outlook Stable
-------------------------------------------------------
S&P Global Ratings raised its corporate credit rating on Intercorp
Peru Ltd. to 'BB+' from 'BB'.  At the same time, S&P raised its
issue-level rating to 'BB+' from 'BB' on Intercorp's $250 million
144 A/Reg. S senior unsecured notes due 2025 and PEN301.5 million
(about $100 million) private placement due 2030.  The outlook
remains stable.

The upgrade follows a revision to S&P's assessment of Intercorp's
financial risk profile to modest from intermediate.  This is
mainly supported by our expectations that the company will
maintain low leverage and protect its cash flow, which would
result in an LTV ratio well below 20% and a cash flow adequacy
ratio above 2.0x, in spite of increased foreign exchange and
financial market volatility and soft macroeconomic conditions.
The rating action incorporates S&P's view that the value of the
company's portfolio of assets will be well above $3.0 billion,
with no significant fluctuations, and that the company will not
issue additional debt within the next two years.

The stable outlook reflects S&P's expectation that the company
will post credit metrics comfortably commensurate with a modest
financial risk profile, including an LTV ratio below 20% and a
cash flow adequacy ratio above 2.0x for the next two years, in
spite of continued soft macroeconomic conditions and regional
foreign exchange volatility, underpinned by its current capital
and financial flexibility, and coupled with the leading position
of its main assets in their respective markets.  The company will
maintain adequate liquidity mainly underpinned by stable dividend
flow from investees.

S&P could lower the ratings if Intercorp's LTV ratio rises to
above 20% and therefore weakens -- which might be the result of
higher debt due to, for example, higher capital infusions into
subsidiaries.  S&P could also downgrade the company's if its total
coverage ratios deteriorate to below 0.7x as a result of lower
dividend income or higher interest or dividend payments, or if the
company's portfolio value deteriorates significantly, particularly
due to lower market capitalization of its listed investees.

Although unlikely in the short term, S&P could upgrade the ratings
on Intercorp if the issuer successfully consolidates its retail
investments, or if it incorporates additional investments leading
to an improvement in the portfolio's creditworthiness, resulting
in an LTV ratio below 10%, consistently.



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


INDUSTRIAS VASSALLO: Court Dismisses Suit vs. Peter Vasquez Massa
-----------------------------------------------------------------
Judge Brian K. Tester of the United States Bankruptcy Court for
the District of Puerto Rico dismissed the adversary proceeding
captioned VASSALLO INTERNATIONAL GROUP, INC. Plaintiff, v. PETER
VAZQUEZ MASSA, et. al. Defendant(s), Adversary No. 16-00137
(Bankr. D.P.R.).

Vassallo International Group, Inc., filed before the bankruptcy
court an emergency motion requesting the court to stay the
proceedings pending before the Puerto Rico Court of First
Instance, Ponce part in cases JPE 2015-0383(605) and JPE2015-
0467(605).  The urgency of the request stemmed from the fact that
the state court has scheduled a trial on the merits in the said
cases to commence on July 6, 2016.  VIGI requested the stay in
order to allow the bankruptcy court to entertain the adversary
complaint filed on June 30, 2016.

Judge Tester, however, concluded that the bankruptcy court lacks
jurisdiction to hear the complaint.  All other pending motion
related to the adversary proceeding were also denied as moot.

A full-text copy of Judge Tester's July 5, 2016 opinion and order
is available at https://is.gd/N9kMMh from Leagle.com.

The bankruptcy case is IN RE: INDUSTRIAS VASSALLO INC., Chapter
11, Debtor(s), Case No. 08-07752 (Bankr. D.P.R.).

VASSALLO INTERNATIONAL GROUP, INC. is represented by:

          Daniel Molina Lopez, Esq.
          TOTTI & RODRIGUEZ DIAZ LAW OFFICES
          Union Plaza Building, Suite 1200
          416 Ponce de Leon Avenue
          San Juan, PR 00918
          Tel: (787)753-7910
          Fax: (787)764-9480
          Email: dml@trdlaw.com


INVERSIONES ARAXI: Hires Juan A. Ruiz Reyes as Accountant
---------------------------------------------------------
Inversiones Araxi Group, Corp and Buena Vista Platation, Corp seek
permission from the U.S. Bankruptcy Court for the District of
Puerto Rico to employ Mr. Juan A. Ruiz Reyes as accountant for the
Debtor.

The Debtor will rely on Mr. Juan A. Ruiz Reyes for general
accounting and financial counseling services in connection with,
but not limited, to this bankruptcy petition.

The Debtor has agreed to pay Mr. Juan A. Ruiz Reyes at a rate of
$1,590 per hour.  The Debtor has agreed with Mr. Juan A. Ruiz
Reyes to pay in advance the amount of $2,000 retainer fee, which
is deemed a down payment for the services to be rendered.

Mr. Juan A. Ruiz Reyes will also be reimbursed for reasonable
out-of-pocket expenses incurred.

Mr. Juan A. Ruiz Reyes assured the Court that the he is a
"disinterested person" as the term is defined in Section 101(14)
of the Bankruptcy Code and does not represent any interest adverse
to the Debtors and their estates.

Mr. Juan A. Ruiz Reyes may be reached at:

       Mr. Juan A. Ruiz Reyes
       Urb. Los Laureles
       26 Los Robles St.
       Cayey, PR 00736
       Tel: 787-738-0850
       E-mail: ruizreyesjuan@yahoo.com

Based in Salinas, Puerto Rico, Inversiones Araxi Group Corp., dba
Motel The Rose, filed a Chapter 11 petition (Bankr. D. P.R. Case
No. 16-02428) on March 31, 2016.  The Hon. Edward A Godoy presides
over the case.  Gerardo L. Santiago Puig, Esq., at GSP LAW,
P.S.C., serves as counsel to the Debtor.

In its petition, the Debtor estimated under $50,000 in assets, and
$1 million to $10 million in liabilities.  The petition was signed
by Luis J. Perez Delgado, president.


POPULAR (BPOP): Fitch's BB- IDR Reflects Commonwealth's Challenge
-----------------------------------------------------------------
Following the Commonwealth of Puerto Rico's default, ratings for
the island's two main banks, Popular (BPOP) and First BanCorp
(FBP), will not be immediately affected, according to Fitch
Ratings.

The long-term IDR of BPOP of 'BB-' and FBP of 'B-' reflect the
persistently weak and difficult operating environment. Fitch
believes the banks will be able to weather losses related to
Commonwealth exposures. Overall, capital positions and expected
profitability at both banks remain adequate to support current
rating levels in light of the Commonwealth's recent default.

With that said, despite the ongoing fiscal challenges and economic
malaise in Puerto Rico, BPOP's and FBP's ratings remain sensitive
to the operating environment, particularly regarding the fiscal
situation and its impact to the broader local economy.
Unemployment rates have remained high (11.7% as of May 2016) and
have not dropped significantly. However, Fitch has a cautious view
on long-term economic trends given the structural issues in Puerto
Rico that need to be addressed, such as net out migration. Should
the Commonwealth's fiscal situation worsen further and lead to a
material change in economic trends, BPOP and FBP's ratings may be
pressured.

Both Puerto Rican banks have various exposures to the Commonwealth
and its instrumentalities. At March 31, 2016, BPOP's direct and
indirect exposure totaled $982m, while FBP's direct and indirect
exposure totaled $757m. Although these exposures are sizable, they
have been reduced over time, and the majority is directly tied to
municipalities with some exposures collateralized by tax revenues.

Fitch said, "Capital positions support the current rating levels.
Our view is that the banks will be able to manage through a period
of stress. In a scenario assuming a 40% write-down to direct and
indirect exposures, Fitch estimates a pro forma TCE/TA ratio of
12.05% for BPOP and a pro forma TCE/TA ratio of 12.22% for FBP,
which would still be relatively high versus similarly sized US
mainland banks. Fitch's mid-tier peer group has a median TCE/TA
ratio of about 9%."

Fitch also notes that both BPOP and FBP also showed solid capital
positions in their 2015 Dodd-Frank Act Stress Test (DFAST)
results, which use specifically prescribed macro conditions unique
to Puerto Rico's circumstances and worse than those prescribed
under the Fed's standard "severely adverse" scenario. The DFAST
results reflect a GDP contraction of 3.2%-3.3% (versus a 1.1%
contraction for the standard test) and an unemployment rate of
18%-19% (versus 9.2% under the standard test). Both banks passed
the tests by comfortable margins over "well-capitalized" minimums.

In Fitch's view, earnings performance for both banks is
sustainable, although loan growth will be a challenge. Both banks
have returned to profitability, albeit at modest levels. Fitch
notes that BPOP and FBP have also worked to stabilize NPAs over
the past several quarters; nonetheless, nonperformers remain very
elevated compared with US banks. Given the low rate environment
and consolidation in the local banking sector, as well as weak
loan demand, BPOP's and FBP's liquidity positions have also
improved. Funding costs have declined as both banks have reduced
their reliance on wholesale borrowings.

Fitch also highlights many of Puerto Rico's 100+ cooperative banks
(also known as cooperativas; not rated by Fitch) in its banking
sector, which account for about $8.5billion in total assets, have
outsized exposures to the Commonwealth and Government Development
Bank. As a result, some cooperatives' capital positions are likely
weak. In December 2015, the Legislature passed "Proyecto del
Senado 1454," which allowed cooperativas to amortize a loss on
defaulted Commonwealth bonds over 15 years rather than
immediately. Under the final Puerto Rico restructuring bill,
cooperativas will likely be handled by the independent oversight
committee.


PUERTO RICO: Rubio, Pierluisi Among Appointees to Task Force
------------------------------------------------------------
Ryan Rainey, writing for Morning Consult, reported that Sens.
Orrin Hatch (Utah) and Marco Rubio (Fla.) will be Senate
Republicans' representatives on a bicameral task force charged
with coming up with methods to help Puerto Rico emerge from its
debt crisis.

According to the report, Rep. Nydia Velazquez (D-N.Y.) and Puerto
Rico's non-voting representative in Congress, Pedro Pierluisi,
will represent House Democrats.

Senate Majority Leader Mitch McConnell (R-Ky.) on July 15
appointed the two senators to the task force, which is separate
from the fiscal oversight board established by the recently passed
law to address the island's debt crisis, the report related.
Hatch is chairman of the Senate Finance Committee, and Rubio has
been an outspoken advocate for a solution to the island's crisis,
the report said.  His home state, Florida, has one of the largest
populations of people of Puerto Rican origin in the country, the
report further related.

Velazquez, whom House Minority Leader Nancy Pelosi (Calif.)
appointed on July 14, was born in Puerto Rico and represents a
district in New York City with approximately 105,000 residents of
Puerto Rican origin, the report noted, citing Census Bureau data.
Senate Minority Leader Harry Reid announced his appointment of
Sens. Bill Nelson (Fla.) and Robert Menendez (N.J.) to the task
force, the report added.

The report recalled that President Obama on June 30 signed into
law the Puerto Rico Oversight, Management and Economic Stability
Act, also known as PROMESA. The congressional task force it
established is required to complete a report on the causes and
possible solutions to the crisis by the end of 2017, the report
said.


SOUTH CARIBBEAN BLOCK: Hires MRO Attorneys as Counsel
-----------------------------------------------------
South Caribbean Block, Inc. seeks authorization from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ MRO
Attorneys at Law, LLC, as its attorney.

The Debtor requires MRO Attorneys to provide legal advise with
respect to its powers and duties as a debtor-in-possession in the
continued operation of its business, and to perform all
legal services for it as may be necessary in the
reorganization of its business.

MRO Attorneys will be paid $200 per hour for services to be
rendered by Myrna L. Ruiz-Olmo, Esq., plus expenses, for work
performed or to be performed upon application, and upon approval
of the Court; rates which are considered to be reasonable and
fair, in line with services comparable to those performed on
behalf of other clients. A retainer fee of $5,000, plus the $1,717
filing fee were paid prior to the bankruptcy filing.

The Debtor assured the Court that the firm is a "disinterested
person" as the term is defined in Section 101(14) of the
Bankruptcy Code and does not represent any interest adverse to the
Debtors and their estates.

MRO Attorneys can be reached at:

       Myrna L. Ruiz-Olmo, Esq.
       MRO Attorneys at Law, LLC
       P.O. Box 367819
       San Juan, PR 00936-7819
       Tel: (787) 237-7440
       E-mail: mro@prbankruptcy.com

South Caribbean Block Inc., filed a Chapter 11 bankruptcy petition
(Bankr. D.P.R. Case No. 16-05121) on June 28, 2016.  The Debtor is
represented by Myrna L Ruiz Olmo, Esq.




                            ***********


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

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

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


                            ***********


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

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

Copyright 2016.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any comillionercial 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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