TCRLA_Public/160830.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

            Tuesday, August 30, 2016, Vol. 17, No. 171


A N T I G U A  &  B A R B U D A

ANTIGUA & BARBUDA: Educator Warns of Fin'l Burden of Losing Nurses


PETROBRAS ARGENTINA: Discloses Expiration and Final Tender Results
TELECOM ARGENTINA: Posts P$1,737MM Net Income for 1H2016


BARBADOS: World Bank Report Erroneous, Says Minister




ECUADOR: Fitch Affirms 'B' IDR & Revises Outlook to Negative


HAITI: US Will Cut Off Money Transfers If No Reforms Undertaken


RASSINI AUTOMOTRIZ: Fitch Hikes Issuer Default Ratings to 'BB-'


PESQUERA EXALMAR: S&P Lowers CCR to 'B-' & Removes from Watch Neg.

P U E R T O    R I C O

AEROPOSTALE INC: Hires Berkeley Research as Financial Advisor
CARIBBEAN TRANSPORT: Case Summary & 13 Unsecured Creditors


LATAM: Int'l Experts to Discuss Water and Sustainable Development
LATAM: Fitch Says Corps. Face Weak Prospects Due to Slow Growth

                            - - - - -

A N T I G U A  &  B A R B U D A

ANTIGUA & BARBUDA: Educator Warns of Fin'l Burden of Losing Nurses
The Daily Observer reports that the head of the University of the
West Indies School of Nursing, St Augustine, is warning against
the drawbacks of Antigua & Barbuda losing nurses who migrate to
metropolitan areas for better pay.

Dr. Oscar Ocho said while people in the lower socio-economic
strata of society would benefit from the migration of nurses when
they remit to their families, the country may have to pay heavily
in an era where people expect a higher level of service from
medical practitioners, according to The Daily Observer.

Dr. Ocho said if the brain drain and the migration continues,
there may be an increase in the level of malpractice suits because
people have a higher level of "consciousness," the report notes.

"It could put serious economic pressure on the state to look at
what is the service they will be able to offer and what level,
within the context of individuals understanding their right to
quality health care," the report quoted Dr. Ocho as saying.

The doctor said maintaining a high quality of health care will
also increase, since government will have to further invest in the
training of more nurses and improving infrastructure, the report

                              *     *     *

As reported in the Troubled Company Reporter-Latin America on
June 2, 2015, The Daily Observer said the International Monetary
Fund is warning the Antigua and Barbuda government that its
Antigua and Barbuda Labour Party administration's current policies
do not appear sustainable.  In its third post program monitoring
assessment, the IMF said urgent actions are needed including
immediate spending cuts.

On Jan. 29, 2016, the TCRLA, citing, reported
that Prime Minister Gaston Browne has announced that government
has reached an agreement with the Medical Benefits Scheme (MBS) to
clear its debt to the institution.  Governments has amassed EC$250
million (US$92.5 million) in debt to MBS over the years.

In September 2014, the TCRLA, citing The Daily Observer, said that
Antigua & Barbuda could soon find itself in the company of Japan,
Zimbabwe, and Greece, the countries with the highest national
debts. In the January 2014 budget presentation, the former
administration indicated that the nation's debt was 87 per cent of
GDP.  However, Prime Minister Gaston Browne has disputed the
figure, deeming it to be as high as 130 per cent.  Minister Browne
said while his government's increased borrowing is pushing up the
nation's debt-to-GDP ratio, it is necessary to solve the country's


PETROBRAS ARGENTINA: Discloses Expiration and Final Tender Results
Petrobras Argentina S.A. disclosed the final results of the
previously announced offer to purchase for cash any and all of the
Company's outstanding 5.875% Series S Notes due 2017 (CUSIP Nos.
71646J AB5 / P7873P AD8; ISIN Nos. US71646JAB52 / USP7873PAD89)
pursuant to the terms and conditions contained in the Company's
Offer to Purchase dated July 6, 2016 (the "Offer to Purchase").
The Offer expired at 11:59 P.M., New York City time, on August 2,
2016 (the "Expiration Time") and has not been extended.

As of the Expiration Time, U.S.$208,868,000 aggregate principal
amount of Notes were validly tendered and not withdrawn,
representing 69.62% of the total principal amount of Notes
outstanding, including the previously announced US$208,037,000
aggregate principal amount of Notes tendered at or prior to 5:00
p.m., New York City time, on July 19, 2016, and previously
accepted and paid for by the Company.  The Company has accepted
the Notes tendered after the Early Tender Deadline and will pay
the Holders thereof in accordance with the terms and conditions of
the Offer. Such Holders will receive the tender offer
consideration of US$1,011.25 per U.S.$1,000 principal amount of
Notes validly tendered (the "Tender Offer Consideration"), plus
accrued and unpaid interest in respect of their purchased Notes
from the last interest payment date to, but not including, the
Final Payment Date (as defined in the Offer to Purchase). The
Company expects the Final Payment Date to be August 5, 2016.

As reported in the Troubled Company Reporter-Latin America on
July 8, 2016, S&P Global Ratings assigned its 'B-' debt rating to
Petrobras Argentina S.A.'s (PESA; foreign currency: B-/Stable/--)
proposed senior unsecured notes for up to $500 million.

TELECOM ARGENTINA: Posts P$1,737MM Net Income for 1H2016
Telecom Argentina disclosed a net income of P$1,737 million for
the six month period ended June 30, 2016, or -12.2% when compared
to 1H15. Net income attributable to Telecom Argentina amounted to
P$1,725 million (-11.8% vs. 1H15).

During 1H16, Consolidated Revenues increased by 37.4% to P$25,406
million (+P$6,910 million vs. 1H15), mainly fueled by the Fixed
Data and Broadband businesses and Mobile Services. Moreover,
Operating Income reached P$3,721 million (+P$573 million or +18.2%
vs. 1H15).

As reported in the Troubled Company Reporter-Latin America on
April 25, 2016, Moody's hiked Telecom Argentina S.A.'s Corporate
Family Rating to B3 from Caa1 in the global scale.


BARBADOS: World Bank Report Erroneous, Says Minister
Theresa Blackman at Caribbean News Now reports that international
business minister, Donville Inniss, has taken the World Bank to
task over its recent report on Doing Business in Barbados.

Addressing the annual International Business Workshop hosted by
the Institute of Chartered Accountants of Barbados, Minister
Inniss described the report as "erroneous", and vowed to challenge
it by outlining its errors and providing evidence to the contrary,
according to Caribbean News Now.

Stating that the World Bank was "off the mark" in some areas,
especially in relation to the length of time taken to incorporate
a company, engage on some insolvency matters and to obtain some
permits, the business minister charged that once again his office
would have to write to the World Bank to discredit their claims,
the report notes.

Minister Inniss questioned the sincerity of some of the
respondents who provided information to the World Bank, and added
that "far too often we have service providers and professionals
who get great service 99 percent of the time and never share such
wonderful experiences with anyone, but take great pleasure in
going on the world stage when at one percent of the time they get
an unsatisfactory response or experience delays," the report

However, Minister Inniss acknowledged that Barbados had to do
better with its service levels, and urged the attendees not to
settle for mediocrity in either the public or private sectors, the
report notes.

"As members of a professional body, I can only encourage you
accountants to act professionally at all times.  After all, all
you have is your reputation and all Barbados has is its
reputation. We can complement one another," the report quoted
Minister Inniss as saying.

Additionally, Minister Inniss informed his audience that business
facilitation within his ministry would be strengthened immediately
to support his Cabinet colleague responsible for business
facilitation, Senator Darcy Boyce. He said that it was his wish
that cost-effective service would become the norm in Barbados and
not something to be facilitated.

As reported in the Troubled Company Reporter-Latin America on
April 5, 2016, Moody's Investors Service downgraded Barbados'
government bond rating and issuer rating to Caa1 and changed the
outlook to stable.


Fitch Ratings has downgraded Colombia Telecomunicaciones S.A.
E.S.P.'s (Coltel) Long-Term Foreign Currency and Local Currency
Issuer Default Ratings to 'BB-' from 'BB'.  Fitch has also
downgraded the company's USD750 million senior notes due 2022 to
'BB-' from 'BB' and its USD500 million subordinated perpetual bond
to 'B' from 'B+'.  The Rating Outlook on the IDRs is has been
revised to Negative from Stable.

                       KEY RATING DRIVERS

The rating downgrades reflect ColTel's cash flow deterioration and
weakening liquidity profile during the LTM period ended June 30,
2016.  This contrasted with Fitch's previous projections of
positive free cash flow for 2016 - 2019.  Fitch expects negative
FCF generation to remain uncurbed amid ARPU erosion and relatively
weak EBITDA performance, as an increasing proportion of cash must
be used to meet PARAPAT yearly payments, which are expected to
account for over 30% of its EBITDA generation during 2016 - 2019.

The Negative Outlook reflects Fitch's view that this weakening
trend will continue given the intense competitive pressures
impacting the company's profitability and the increasing
proportion of cash to be consumed by PARAPAT payments in the next
years.  PARAPAT scheduled payments together with CAPEX execution
is expected to lead to an average negative Free Cash Flow of
approximately COP 152 billion per year between 2016 and 2019.

The company's financial flexibility has been reduced following the
breached of its leverage covenant in its 2022 notes, which limits
additional maximum permitted debt to USD300 million, of which it
had already drawn USD50 million as of June 2016.  The shrinking
headroom for additional debt will limit the ability of ColTel to
execute planned capex in non-traditional services, which hurts its
competitive position and diminishes its cash flow generation
capacity, as traditional services revenues continue to contract.

Future ratings actions will largely depend on the company's
strategy to improve its capital structure.  Fitch believes that a
sizable capital injection would be necessary for the company to
achieve a sustainable capital structure and turn around its weak
cash flow generation.  Coltel's ratings will be downgraded to the
'B' category should the company fail to show any measures to
improve its weak financial position in the near term.

EBITDA Contraction

Coltel's EBITDA contracted by 9% during the six month period as of
June 2016, compared to the same period in 2015, driving the EBITDA
margin from 35% in June 2015 to 30% in June 2016.  This steep
contraction in profitability is explained by a 13.5% increase in
costs, which far surpassed the revenue increase of 5% during the
period.  A fierce competitive landscape has continued to pressure
ARPU evolution while the peso depreciation and rising inflation
have impacted the company's cost structure.  Fitch expects the
current falling EBITDA margin trend to continue in the near
future, given the expectation of a slow diversification from voice
revenues to non - traditional services, driving ColTel's margins
to an average below 32% in 2016 - 2019.

Suppressed Cash Flow Generation:
Coltel's negative FCF generation is unlikely to turn around in the
short to medium term due to high cash outflow burden to fund capex
needs and PARAPAT payments.  Coltel's CFFO fell to COP 600 billion
as of LTM June 2016, compared to COP 710 billion in FY2015, a
weakening trend expected to continue in FY2016 due to falling
EBITDA and PARAPAT payments.  Coltel's PARAPAT payments are
scheduled to be COP 497 billion in 2016 and COP 509 billion in
2017, which Fitch expects to consume more than 30% of the
company's EBITDA generation during the period, which is forecast
to be around COP1.5-1.6 trillion.  Coltel's capex is expected to
remain high in 2016 at around COP1 trillion.  These expenditures
are necessary to shore up its network competitiveness and will
result in a negative FCF of around COP 400 billion, a substantial
deviation from Fitch's previous projection for the year (+ COP 17
billion).  Fitch expects FCF to remain negative in 2017 - 2019
based on the assumptions that the company's operational
profitability remains pressured and that no capitalization takes
place in 2017.

High Leverage
Coltel's leverage is high for the rating category.  Fitch's
calculation of net debt to EBITDA (including PARAPAT debt, 50% of
the perpetual bond and the hedging of FX risk) increased from 4.8x
in December 2015 to 5.3x in June 2016, while its leverage ratio
calculated under the 2022 USD 750 million senior bond covenant
(which includes 100% of the perpetual bond, excludes the PARAPAT
debt but adjusts EBITDA by subtracting LTM PARAPAT payments),
increased from 3.8x to 4.4x during the same period.  The leverage
deterioration, independently of how it is calculated, points to a
precarious capital structure, which cannot be improved given the
ongoing CFFO contraction trend as a result of high PARAPAT
payments and relatively weak EBITDA generation.  Fitch expects
ColTel's leverage to remain around 5.4x in 2016 - 2019 as it
struggles to meet its financial obligations while optimizing its
capex plan given the financing constraint imposed by the
incurrence covenant of the 2022 senior bond.

Limited Financial Flexibility
Coltel's financial flexibility has diminished following its breach
of the 3.75x leverage incurrence covenant under the 2022 Bond
indenture (March 2016) and as a result can only take additional
debt to a maximum of USD300 million.  As of June 30, 2016,
USD50 million out of the permitted USD300 million additional debt
was drawn out from its credit facilities.  The limited headroom
for additional debt imposes a material financial constraint,
especially as the company plans to start executing its Fiber to
the Home (FTTH) investment strategy during the fourth quarter of

Weakening Competitive Position:
Fitch expects the current falling CFFO trends to temper the
company's ability to implement its CAPEX strategy to support
network upgrades, which would result in a weaker competitive
position.  With no additional available funding, Fitch expects
ColTel's capex intensity to fall from an average of 23.8% in
2012 - 2015 to approximately 15% in 2016 - 2018.  The company
plans to optimize its capex primarily focusing on deploying its
fiber-to-the-cabin network (FTTC) and slowly begin to deploy its
fiber-to-the-home (FTTH) network by the end of 2016, which would
delay any meaningful diversification from the traditional and less
profitable services to the higher ARPU non-traditional business
segments.  Coltel had yet to show meaningful growth in its high
ARPU products, such as broadband and HD-TV, to improve its EBITDA
and achieve higher revenue diversification.  The contribution from
its pay-TV service remained at just 5% of total sales as of June
2016, significantly lower than its 10% target.

Equity Falls Back to Negative
ColTel's equity has fallen once again into negative territory as
of June 2016 (-COP 696 billion once the perpetual bond is adjusted
for 50% equity credit) pointing to the need to find a structural
and permanent solution to the capital structure of the company.
Coltel was already forced to implement a major restructuring of
the PARAPAT obligation in 2012, when it became evident that EBITDA
performance was not sufficient to absorb PARAPAT payments agreed
to in the Investment Agreement signed between Telefonica, the
Nation and ColTel in 2006.  The EBITDA underperformance during
2006 - 2011 led the Nation to assume 48% of the total PARAPAT
consideration (estimated then at USD3 billion) and leaving ColTel
to assume the remaining 52%.  However, the remaining PARAPAT
obligation following the restructuring has proven to be too large
an obligation for ColTel's cash generation capacity, which
continues to exert pressure on the company's results, as evidenced
by a negative net income of COP 235 billion during the six month
period as of June 2016.

In 2015 ColTel adopted the IFRS accounting standard which required
registering the PARAPAT obligation on its balance sheet.  This
drove the company's equity position in to negative territory,
requiring the issuance of a deeply subordinated bond to bring back
the equity position to positive numbers.  However, the continuing
deteriorating financial results have again determined a negative
equity position as of June 2016, begging the need for a structural
solution that ensures a sustainable capital structure.


   -- No Capitalization takes place;
   -- Parapat payments are not restructured;
   -- CFO weakens;
   -- FCF remains negative in 2016 - 2019;
   -- Leverage with and without PARAPAT remains above 5x and 3x

                         RATING SENSITIVITIES

Considerations that could lead to a negative rating action (rating
or Outlook):

   -- Failure to improve its current precarious capital structure
      and liquidity profile;
   -- Continued profitability deterioration due to competitive
      pressures and slow growth in its non-traditional business
   -- Negative FCF generation amid persistently high PARAPAT
   -- Adjusted net leverage, excluding the Parapat liability, to
      remain above 3x on a sustained basis;
   -- Adjusted net leverage, including the Parapat liability, to
      remain above 5x on a sustained basis.

Considerations that could lead to a positive rating action (Rating
or Outlook):

   -- A positive rating action is unlikely absent any material
     improvement in the company's capital structure.


ColTel's liquidity has weakened considerably as of June 2016 when
cash balances (including short term investments) fell to COP53
billion (COP 293 billion in FY2015), representing just 7% of short
term debt obligations of COP 750 billion, an amount that includes
COP503 billion associated with the PARAPAT consideration.  Coltel
reported COP 1,3 trillion in available lines of credit of which it
is permitted to use up to the equivalent of USD 250 million (COP
750 billion) during the second semester of 2016.


Fitch has downgraded these ratings:

Colombia Telecomunicaciones S.A. ESP

   -- Foreign currency IDR to 'BB-' from 'BB'; Outlook to Negative
      from Stable;
   -- Local currency IDR to 'BB-' from 'BB'; Outlook to Negative
      from Stable;
   -- USD750 million senior notes due 2022 'BB-' from 'BB';
   -- USD500 million subordinated perpetual bond to 'B' from 'B+'.


ECUADOR: Fitch Affirms 'B' IDR & Revises Outlook to Negative
Fitch Ratings has affirmed Ecuador's Long-Term Foreign Currency
Issuer Default Rating at 'B' and revised the Rating Outlook to
Negative from Stable.  The issue ratings on Ecuador's senior
unsecured Foreign Currency bonds are also affirmed at 'B'.  The
Country Ceiling is affirmed at 'B' and the Short-Term Foreign
Currency IDR at 'B'.

                          KEY RATING DRIVERS

The revision of the Outlook to Negative reflects these key

The growth and fiscal outlook in Ecuador has deteriorated since
the last review in October 2015 due to lower oil prices and higher
financing needs.  The economy has entered into recession in 2016
with an expected contraction of 2%, followed by only a modest
uptick in growth in 2017.  Fiscal and external adjustment
demonstrate commitment to maintaining official dollarization, but
have hit demand.  Although deposits in the financial system fell
12% in 2015, they have stabilized in 2016.  Furthermore, although
banking sector profitability and credit quality has deteriorated
somewhat, the capitalization ratios and provisioning remain

In spite of expenditure containment and cuts (especially capital
expenditures) and new tax revenue measures, the sharp drop in
revenues (both oil and non-oil), rising interest payments and
current expenditure rigidity will result in continued high non-
financial public sector (NFPS) deficits of 5.7% of GDP in 2016, up
from 5.2% in 2015.  The deficit could remain high at over 5% in
the forecast period, although much depends on the government's
ability to obtain financing.  The government has covered its 2016
financing needs from a combination of multilateral, bilateral and
market sources.  Financing continued large deficits could prove

The high deficits and the recession have negatively impacted debt
metrics, as NFPS debt is expected to rise to an estimated 38% of
GDP in 2016 from 33% in 2015.  Fitch projects debt to continue to
rise over the forecast period given the gradual pace of fiscal
consolidation and sluggish growth, surpassing the 40% of GDP legal
debt ceiling limit in 2017.  This is lower than the 'B' median 58%
of GDP.  While Ecuador repaid its 2015 bond issuance last year and
most recently tapped the international bond market in July 2016,
Ecuador's debt tolerance is comparatively weaker due to its high
commodity dependence, constrained external financial flexibility
and a weak historical repayment record.

Presidential and legislative elections are scheduled for February
2017 with the new government taking office in May 2017.
Governance challenges that prevent a timely policy response in a
weak economic environment could increase given that the next
president will likely have to maneuver legislation through a more
divided Congress.

cuador's external solvency and liquidity indicators are weakening.
Ecuador became a moderate net external debtor in 2015, driven by
sovereign borrowing and a reduction in the bank's net foreign
asset position.  Net external debt is expected to rise further
over the next two years to 8.8% of GDP in 2018.  The economic
recession and the continuing import restrictions are partially
containing the current account deterioration from the plunge in
oil exports and loss of export competitiveness from the
strengthened U.S. dollar and currency depreciation of major
regional trading partners.

International reserves fell to USD2.5 billion in 2015 from USD4
billion in 2014.  They are expected to end the year at
USD2.9 billion from year-end 2015, covering just 1.3 months of
current account payments, consistent with recent years.

Ecuador's ratings reflect its high commodity dependence (oil
exports now account for 30% of exports and oil revenues account
for 20% of the government's revenues), weak external liquidity,
high fiscal deficits and a poor historical debt repayment record.
These factors are counterbalanced by its higher per capita income,
improved governance and social indicators, and dollarization that
support macroeconomic stability and low inflation.

Fitch's proprietary SRM assigns Ecuador a score equivalent to a
rating of 'BB-' on the Long-Term FC IDR scale.

Fitch's sovereign rating committee adjusted the output from the
SRM to arrive at the final Long-Term FC IDR by applying its QO,
relative to rated peers, as follows:

Macroeconomic: -1 notch, to reflect Ecuador's lower growth
prospects than rating peers.
External: -1 notch, to reflect Ecuador's external vulnerabilities
to shocks because of its high commodity dependence and restrained
external financing flexibility in the context of official

Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three year centred
averages, including one year of forecasts, to produce a score
equivalent to a Long-Term FC IDR.  Fitch's QO is a forward-looking
qualitative framework designed to allow for adjustment to the SRM
output to assign the final rating, reflecting factors within our
criteria that are not fully quantifiable and/or not fully
reflected in the SRM.

The main factors that could lead to a downgrade are:


   -- Financing constraints or failure to adjust external accounts
      in an environment of subdued oil prices;

   -- Governability challenges that hamper a policy response to a
      weaker growth environment and limits space for further
      fiscal adjustment.

   -- Weaker than expected growth that leads to higher fiscal
      deficits, greater financing needs and a growing debt burden.

   -- Policies that undermine the sustainability of the
      dollarization regime.

The Rating Outlook is Negative.  Consequently, Fitch's sensitivity
analysis does not currently anticipate developments with a high
likelihood of leading to a positive rating change.  Future
developments that could individually, or collectively, result in a
stabilization of the Outlook include:

   -- Renewed growth momentum, for example driven by higher levels
      of investment in the oil sector, productivity-enhancing
      reforms and improvements in the business environment;

   -- Implementation of policy adjustments that improves the
      trajectory of its fiscal accounts and/or further easing of
      financing constraints;

   -- Improvements in the economy's external liquidity position
      that provides a more ample buffer to external shocks.

                         KEY ASSUMPTIONS

The ratings and outlook are sensitive to a number of assumptions:

   -- The growth, fiscal and external forecasts assume that oil
      production could fall 5% from its present levels
      (548,000bpd) in 2016-2017 due to investment cutbacks by
      state oil enterprises.  Fitch's latest projections point to
      a recovery in oil Brent prices to USD42/b in 2016, USD45/b
      in 2017 and USD55/b in 2018.


HAITI: US Will Cut Off Money Transfers If No Reforms Undertaken
Kenneth Rijock at Caribbean News Now reports that the Obama
Administration has reportedly warned that it will end all money
transfers from the US to Haiti in November, 2016, unless certain
unspecified "corrective measures" are taken.

Many Haitians have, for decades, been largely supported by
remittances sent by expatriates working in America to their needy
families in Haiti, but that route is also used to repatriate the
proceeds of narcotics crime, and apparently the United States has
lost patience with the Haitian financial industry's non-existent
anti-money laundering and combating the financing of terrorism
(AML/CFT) efforts, according to Caribbean News Now.

Most North American compliance officers are ill-informed about the
thriving Venezuela-to-Haiti-to USA drug trafficking route,
believing Haiti to be an extremely poor country and not
understanding its key role in drug smuggling and money laundering
operations, the report notes.

The level of corruption in Haiti is considered by many experts to
be the highest in the Western Hemisphere, and the participants
have a vested interest in keeping their financial structure deaf,
dumb and blind regarding protection from financial crime, so
unless the United States backs off, Haitians living in America
could lose a large part of the resources that they depend upon to
sustain their unemployed relatives at home, the report relays.


RASSINI AUTOMOTRIZ: Fitch Hikes Issuer Default Ratings to 'BB-'
Fitch Ratings has upgraded Rassini Automotriz, S.A. de C.V.'s (RA)
Foreign and Local Currency Long-Term Issuer Default Ratings (IDRs)
to 'BB-' from 'B+'. The Rating Outlook is Stable.

The ratings upgrade reflects RA's strengthened business and credit
profile resulting from increased market penetration in suspension
systems and brakes that should allow the company to sustain above
average volume growth. Also factored into its upgrade are recent
debt repayments and expected solid funds from operations (FFO)
generation in the coming years due to the gravitation of auto
manufacturing to Mexico and a favorable demand outlook for the
company's products. All these factors combined should allow RA to
remain within its long-term total leverage target below 2x and
continue to improve its liquidity profile.

The ratings reflect RA's business position as a Tier-1 supplier of
suspension and brake components, its geographic diversification,
efficient operations, low cost structure and improved financial
profile. The company's ratings are limited by the cyclicality of
the automotive industry as well as RA's regional and customer
concentration in North America, small scale and credit track

Strong Business Position

RA, a subsidiary of Rassini, S.A.B. de C.V. (Rassini),
manufactures suspension and brake components for light and heavy
vehicles, with leading positions in North America and Brazil. The
company's main product line, leaf springs, which accounted for 58%
of total sales in 2015, has historically had a dominant market
position in North America. This strong position results from the
group's specialization and technology development, close and
longstanding relationships with customers through product design
and development, its geographic location, and integrated

Product Diversification Increasing

During 2014-2015, Rassini was awarded new contracts totalling
about USD1.450 billion for the next five years. Approximately 35%
of these agreements was related to Rassini's brakes division,
where revenue growth has been the fastest. This division accounted
for 31% of revenues during 2015, compared with 17% during 2012.
The company has also gained incremental business in coil springs.
Strong market penetration should allow Rassini to continue to
increase its market share of the North America brake and coil
spring markets and achieve above average industry growth.

Customer and Regional Concentration

Rassini is considered an essential supplier to several original
equipment manufacturers (OEMs), including General Motors Co., Fiat
Chrysler Automobiles N.V. and Ford Motor Co. Detroit's Big Three
OEMs represented 77% of Rassini's total revenues during 2015;
North America accounted for 89% and 99% of Rassini's total
revenues and EBITDA, respectively. Both regional and customer
concentration as a percent of revenues increased as a result of
organic growth in North America as well as plummeting vehicle
demand in Brazil. Fitch expects the contribution of North America
to fully offset shrinking profitability in Rassini's Brazilian

Leverage Reduction

Rassini has continued to reduce its leverage level as a result of
higher EBITDA generation in North America as well as debt
repayments. On a consolidated basis, Rassini's total adjusted
debt/EBITDAR for the last 12 months (LTM) ended June 30, 2016 was
1.3x which compares positively to year-end 2014 levels of 2x. The
company is evaluating multiple options to continue to grow,
including organic investments or potential acquisitions. Rassini's
ratings consider that the company's long-term capital structure
will remain within management's target of staying below 2x total

Sound FFO Generation Expected

FFO has increased to USD97 million during 2015 compared with USD61
million and USD55 million during 2014 and 2013, respectively.
Strong market penetration of the North America brake market has
increased Rassini's cash flow. A shift in consumer preference for
pickup trucks, and a strong dollar relative to the Mexican peso
have boosted performance during the last two years. Fitch is
projecting that FFO will peak at about USD110 million in 2016 due
to extraordinary revenues, but that Rassini's ability to generate
FFO will stay relatively strong over the intermediate term at
about USD100 million per year. Fitch expects free cash flow (FCF)
to remain around USD25 million per year during the next few years.


Fitch's key assumptions within the rating case include:

   --  Consolidated volumes peak in 2016 but remain above 2015

   --  Rassini's EBITDA margins rise significantly in 2016 as
       production volumes grow, the company's cost discipline is
       further enhanced by a strong U.S. dollar, and somewhat
       lower electricity costs in Mexico.

   --  Total adjusted debt/EBITDAR stays at or below 2x over the
       intermediate term.

   --  Rassini remains FCF positive over the intermediate term.


Negative rating actions could result from a combination of lower
volumes and profitability as a result of material deterioration in
North American light vehicle demand which translates into
sustained leverage above management's target of 2x. Weak operating
cash flow and deteriorating liquidity could also result in
negative rating actions.

Positive rating actions are unlikely given the recent upgrade.
However, a significantly larger scale coupled with increased
customer or geographic diversification, and expectations of
sustained leverage levels at or below 1x in conjunction with a
strong liquidity profile could result in positive rating actions.


Rassini's sustainable liquidity is considered adequate and is
primarily supported by its solid cash flow generation and low debt
which together with a strengthening business profile should allow
the company to continue to manage upcoming debt maturities.
Rassini's financial debt was USD150 million as of the second-
quarter 2016. The majority of this debt matures over the next
three years and compares to estimated readily available cash of
USD45 million. The company is looking at refinancing alternatives
and an expectation of a lengthening maturity profile is
incorporated in the ratings. The company also uses receivable
factoring facilities on average in an amount of USD30 million-
USD40 million. Fitch treats these facilities as debt for its ratio
calculations as immediate replacement funding is required if the
receivables financing shuts down or eligible receivables decline
in quality and the facility ceases to fund ongoing receivables.


PESQUERA EXALMAR: S&P Lowers CCR to 'B-' & Removes from Watch Neg.
S&P Global Ratings lowered its corporate credit and issue-level
ratings on Pesquera Exalmar S.A.A. to 'B-' from 'B' and removed
them from CreditWatch negative, where S&P placed on June 16, 2016.
The outlook is negative.

The downgrade on Exalmar reflects the decline in its cash flow
generation given volatile weather conditions and a delay in the
opening of the first fishing season of 2016 that have reduced
fishmeal production volumes.  The lower-than-expected cash flow is
pressuring Exalmar's liquidity and constrains the company's
capacity to reduce its high leverage.  In addition, S&P considers
that the lengthy unfavorable conditions in Peru's industry
heighten Exalmar's vulnerability to external factors, which
weakened its profitability metrics and other key financial

The issue-level rating incorporates the company's announcement
that it will cap the tender offer on its senior unsecured notes
due 2020 to $30 million, which it would fund with a new secured
debt.  In S&P's view, Exalmar's priority liabilities will continue
to represent less than 15% of total adjusted assets even if the
notes are validly tendered, which mitigates a potential structural
subordination per S&P's criteria.

Exalmar's business risk profile reflects the vulnerability to
external factors such as weather conditions, the start of fishing
seasons, and the quota approval process by Peruvian authorities.
In addition, given that Exalmar has a limited scale of operations
and is heavily dependent on production volumes along the Peruvian
coast, in our view, the company has limited flexibility to
withstand adverse dynamics beyond its control that could impair
its performance.

Exalmar's profitability metrics have weakened from declining
production volumes and somewhat lower fishmeal prices.  Although
the company's EBITDA margins remain above the industry's average,
Exalmar's five-year historical average return on capital of 4.5%
is lower than that of its rated global peers.

Exalmar's financial risk profile remains highly leveraged,
reflecting S&P's expectation that leverage ratios will remain
above 5.0x for the next couple of years despite an expected
normalization of fishing conditions for upcoming seasons.

S&P's assessment continues to incorporate the potential for
volatility in the company's cash-flow leverage ratios, as seen in
the performance of recent quarters.  For the 12 months ended
June 30, 2016, Exalmar's adjusted debt-to-EBITDA ratio reached
8.1x, above S&P's previous estimate of about 5.0x.

S&P's base-case scenario assumes these factors:

   -- China's GDP growth of more than 6% in 2016 and 2017.

   -- Peru's GDP growth of 4% in 2016 and 2017.

   -- Consumer Price Index in Peru to remain close to 3.0% in the
      next couple of years.

   -- Exchange rate of PEN3.5 per $1 in 2016 and PEN3.6 per $1 in
      2017.  Exchange rate affects local currency costs (e.g.
      labor) due to the dollar-denominated revenue.

   -- Peru's real exports to increase by about 9.3% in 2016 and
      4.4% in 2017, reflecting a recovery in commercial trade
     (from less than 1% in 2015).

   -- The company's production volumes to decline in 2016
      following a delayed start of the first fishing season of the
      year, which led Exalmar to realize only 50% of the catch of
      its assigned quota (6.17% of 1.8 million tons) of 1.11
      million.  For 2017, S&P expects a recovery in fishmeal and
      fishoil production volumes.

   -- In light of improving weather and biomass reports, S&P
      expects global fishing quotas to gradually trend towards 2
      million tons per fishing season.

   -- Exalmar's participation in the Global Quota for 2016 through
      owned quota and third-party purchases to remain in line with
      2015 for a total market share of about 12%.

   -- Fishmeal prices to remain between $1,550 and $1600 per ton
      in 2016 and 2017.

   -- Fishoil prices in excess of $1,800 per ton throughout the
      forecast period.

   -- Revenue growth about 8.5% iin 2016 and 18.2% in 2017.

   -- EBITDA to decline in 2016 as a result of lower fishmeal
      prices for the forecasted period and reduced efficiency
      rates despite the sharp decline in fuel prices.  (Labor and
      fuel represent approximately 50% of production costs (catch
      + processing)).

   -- Annual capital expenditures to remain close to $12 million
      in 2016 and 2017.

   -- No dividend payments in 2016, and resuming at $10 million
      starting in 2017.

Based on these assumptions, S&P arrives at these metrics for 2016
and 2017, respectively:

   -- EBITDA margin of 16.5% and 23.5%;

   -- Debt to EBITDA of 9.4x and 5.9x;

   -- Funds from operations (FFO) to debt of 3% and 9.4%; and

   -- EBITDA interest coverage above 1.4x and 2.2x.

S&P is revising its assessment of Exalmar's liquidity to weak from
less than adequate because S&P now forecasts sources-over-uses
ratio to be a considerable deficit for the next 12 months due to
sluggish production volumes following a long delay in the start of
the first fishing season of the year and relatively low fishmeal
inventories as of June 2016.

Principal Liquidity Sources:

   -- Cash and liquid investments of $17.2 million as of June

   -- FFO of about $12 million for the next 12 months; and

   -- Committed credit facility of $20 million, of which
      $15 million was available as of June 2016.

Principal Liquidity Uses:

   -- Debt maturities of $33.3 million as of June 2016 mainly
      related to bank notes;

   -- Working capital outflows of $6.3 million for the next 12

   -- Maintenance capital expenditures of about $7 million for the
      next 12 months; and

   -- Dividend distributions of about $5 million.

Exalmar has a debt incurrence covenant that consists of a leverage
ratio below 3.5x.  Currently, the company is in breach of this
limitation, and S&P expects this breach for the next 12 months.
However, the financing documents include a provision under which
Exalmar could still incur debt consisting of receivables
financing.  This financing has to be in connection with the
company's working capital needs in an aggregate principal amount
of no more than $70 million or 14.5% of the company's consolidated
assets.  In S&P's view, this provides Exalmar with a degree of
flexibility to fund its operations.

All modifiers are neutral to Exalmar's anchor.

The negative outlook reflects a one-in-three chance of another
downgrade within the next 12 months if external factors continue
to constrain Exalmar's production volumes and cash flow generation
prospects, further eroding its liquidity.  This could be triggered
by fishing quotas in the North Center region of less than 2
million tons per season or if delays in the opening of fishing
activities continue.  S&P could also lower the ratings if it deems
the issuer's financial commitments appear to be unsustainable in
the long term.

S&P could revise the outlook to stable in the next 12 months if a
sustained recovery in production volumes strengthens Exalmar's
liquidity position and key financial indicators, with a debt to
EBITDA approaching 5.0x and an FFO to debt close to 20%.  This
could occur if improving weather conditions and biomass reports
lead to an annual fishing quota greater than 4 million tons while
demand from China continues to support fishmeal prices above
$1,500 a ton.

P U E R T O    R I C O

AEROPOSTALE INC: Hires Berkeley Research as Financial Advisor
Aeropostale, Inc., et al., seek authority from the U.S. Bankruptcy
Court for the Southern District of New York to employ Berkeley
Research Group, LLC as financial advisor and consultant to the
Debtors, nunc pro tunc to May 25, 2016.

Aeropostale, Inc. requires Berkeley to:

   a. assist with the negotiation of any further DIP Financing;

   b. assist with the development and validation of key
      assumptions for DIP cash flow forecasts;

   c. assist and support negotiations with key product suppliers;

   d. assist with the evaluation of store footprint and store
      closure scenarios;

   e. assist with the negotiations with asset disposition firms
      related to inventory sales;

   f. provide advice on restructuring alternatives, including but
      not limited to, any asset sales or a plan of reorganization;

   g. assist in the negotiation with any potential plan sponsor
      or purchaser;

   h. provide testimony on various matters as needed; and

   i. render other restructuring, general business consulting or
      other assistance for the Company as the Company's management
      or counsel may request.

Berkeley will be paid at these hourly rates:

       Managing Directors               $725-950
       Directors                        $600-825
       Professional Staff               $250-625
       Support Staff                    $125-250

Berkeley will also be reimbursed for reasonable out-of-pocket
expenses incurred.

Robert J. Duffy, Berkeley Research Group, LLC 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.

Berkeley can be reached at:

         Robert J. Duffy
         Berkeley Research Group, LLC
         70 W. Madison Street, Suite 5000
         Chicago, IL 60602
         Tel: (312) 429-7900

                    About Aeropostale Inc.

Aeropostale, Inc. (OTC Pink: AROPQ) is a specialty retailer of
casual apparel and accessories, principally serving young women
and men through its Aeropostale(R) and Aeropostale Factory(TM)
stores and website and 4 to 12 year-olds through its P.S. from
Aeropostale stores and website.  The Company provides customers
with a focused selection of high quality fashion and fashion basic
merchandise at compelling values in an exciting and customer
friendly store environment.  Aeropostale maintains control over
its proprietary brands by designing, sourcing, marketing and
selling all of its own merchandise.  As of May 1, 2016 the Company
operated 739 Aeropostale(R) stores in 50 states and Puerto Rico,
41 Aeropostale stores in Canada and 25 P.S. from Aeropostale(R)
stores in 12 states.  In addition, pursuant to various licensing
agreements, the Company's licensees currently operate 322
Aeropostale(R) and P.S. from Aeropostale(R) locations in the
Middle East, Asia, Europe, and Latin America.  Since November
2012, Aeropostale, Inc. has operated, an online women's
fashion footwear and apparel retailer.

Aeropostale, Inc., and 10 of its affiliates each filed a voluntary
petition under Chapter 11 of the Bankruptcy Code (Bankr. S.D.N.Y.
Lead Case No. 16-11275) on May 4, 2016.  The petitions were signed
by Marc G. Schuback as senior vice president, general counsel and

The Debtors listed total assets of $354.38 million and total debts
of $390.02 million as of Jan. 30, 2016.

The Debtors have hired Weil, Gotshal & Manges LLP as counsel; FTI
Consulting, Inc., as restructuring advisor; Stifel, Nicolaus &
Company, Inc., and Miller Buckfire & Company LLC as investment
bankers; RCS Real Estate Advisors as real estate advisors; Prime
Clerk LLC as claims and noticing agent; Stikeman Elliot LLP as
Canadian counsel; and Togut, Segal & Segal LLP as conflicts

Judge Sean H. Lane is assigned to the cases.

The U.S. trustee for Region 2 on May 11, 2016, appointed seven
creditors of Aeropostale Inc. to serve on the official committee
of unsecured creditors.  The Committee hired Pachulski Stang Ziehl
& Jones LLP as counsel.

                           *     *     *

The Bankruptcy Court entered an order establishing (i) July 25,
2016 at 5:00 p.m. (Eastern Time) as the deadline for each person
Or entity, not including governmental units to file proofs of
claim in respect of any prepetition claims against any of the
Debtors, and (ii) Oct. 31, 2016, at 5:00 p.m. (Eastern Time) as
the deadline for governmental units to file proofs of claim in
respect of any prepetition claims against any of the Debtors.

CARIBBEAN TRANSPORT: Case Summary & 13 Unsecured Creditors
Debtor: Caribbean Transport Refrigeration & Power Systems Inc.
        PO Box 507
        Morovis, PR 00687

Case No.: 16-06766

Chapter 11 Petition Date: August 25, 2016

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

Debtor's Counsel: Teresa M Lube Capo, Esq.
                  LUBE & SOTO LAW OFFICES, PSC
                  1130 Ave FD Roosevelt
                  San Juan, PR 00920-2906
                  Tel: 787-722-0909
                  Fax: 787-977-1709

Estimated Assets: $0 to $50,000

Estimated Liabilities: $1 million to $10 million

The petition was signed by Isidro Ojeda, president.

A copy of the Debtor's list of 13 unsecured creditors is available
for free at


LATAM: Int'l Experts to Discuss Water and Sustainable Development
The event "Eye on Latin America and the Caribbean" will be held
today, August 30 and Wednesday, August 31, as part of the
Stockholm International Water Institute's (SIWI) 2016 World Water
Week, with the presence of high-profile experts and panelists from
government agencies, water utilities, international organizations,
universities, private sector, and donor agencies, among others.
Discussions will address four topics:

   1. Water and sanitation as a business: how to generate a viable
      environment in Latin America and the Caribbean (LAC) to
      develop businesses around water and sanitation that help
      bridge coverage gaps and improve service quality for low
      income populations;

   2. The circular economy of water: how to advance wastewater
      reuse in LAC providing an outlook for the future;

   3. Green infrastructure: how to move towards a wiser
      combination of green and traditional infrastructure in LAC
      to meet the needs of the 21st century;

   4. Achieving the SDG 6 (an Inter-regional Dialogue): exploring
      the opportunities and challenge to meet the water-related
      Sustainable Development Goal.

The event is coordinated by the Inter-American Development Bank
(IDB) through its Water and Sanitation Division, in cooperation
with: FEMSA Foundation, The Nature Conservancy (TNC), Development
Bank of Latin America (CAF), ONE DROP, PepsiCo Foundation,
Fundacion Chile, the Association of Regulators of Water and
Sanitation of the Americas (ADERASA), IRC, Water Aid, Water For
People, The World Bank Group, the Spanish Agency for International
Development Cooperation (AECID), the Asian Development Bank (ADB)
and the African Ministers' Council on Water (AMCOW).

LATAM: Fitch Says Corps. Face Weak Prospects Due to Slow Growth
Latin American corporates face a challenging remainder of 2016 due
to a range of issues including sluggish growth, depressed
commodity prices, and political risk, according to a new Fitch
ratings report.

"Across Latin America, corporates face headwinds that are not
expected to abate before year end.  The only bright spots are
Mexico and Peru - both countries are expected to enjoy positive
GDP growth that should support the corporate sector," said Jay
Djemal, Director.

In Argentina, short-term growth prospects for corporates remain
weak with the economy expected to contract in 2016 by 0.3%,
reflecting the effect of higher utility tariffs, a weaker exchange
rate and reduced policy stimulus.

Brazilian corporates continue to face a cash flow crisis without a
measurable recovery expected in 2016.  High political uncertainty,
low commodity prices and tight financing conditions continue to
depress economic conditions and credit quality.

The Chilean economy is enduring a third year of sluggish activity,
partly due to lower copper prices, low investments as a result of
unclear structural reforms promoted by the government, and
persistent weakness in consumer economic perception.

Colombian corporates face a challenging environment for the
remainder of 2016.  After growing 3.1% during 2015, Fitch expects
GDP growth to average 2.3% for 2016.  The agency revised the
Outlook on Colombia's ratings to Negative from Stable and affirmed
the Long-Term Foreign-Currency Issuer Default Rating at 'BBB' in
July 2016.

Mexican corporate credit trends are expected to be stable in 2016,
with a projected 2.5% GDP growth driven mainly by domestic private
sector consumption and service-related activities.  This growth
should maintain the better operating performance for corporates in
the food and beverage, retail and tourism sectors.

Peru's GDP is expected to grow at 3.3% in 2016 due to new copper
export volumes from recently completed mining projects alongside
infrastructure investments across the country.  The expected
continuity of macroeconomic policy by the new president is viewed


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


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

                   * * * End of Transmission * * *