TCRLA_Public/161013.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

            Thursday, October 13, 2016, Vol. 17, No. 203


                            Headlines



A R G E N T I N A

CORDOBA PROVINCE: Moody's Rates USD150MM Class 1 Notes B3
MASTELLONE HERMANOS: S&P Affirms 'B-' CCR; Outlook Remains Stable


B R A Z I L

BANCO CITIBANK: Moody's Affirms Ba3 Deposit Ratings; Outlook Neg.
BANCO DAYCOVAL: Moody's Rates New Sr. Unsec. Banknotes Ba2
ITAU UNIBANCO: Moody's Affirms Ba2 Local Currency Deposit Ratings
PETROLEO BRASILEIRO: Unit Sale Said to Lure Brazil Banking Clans
SAO MARTINHO: S&P Affirms 'BB+' CCR; Outlook Remains Stable


C A Y M A N   I S L A ND

ATMU INC: Wind Up Petition Hearing Set for Nov. 10 in Cayman


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Builders, Developers Seek to Scrap 50% Tax


H A I T I

* HAITI: IDB President Pledges Support for in Wake of Hurricane


M E X I C O

CHICOLOAPAN: Moody's Affirms Ba3 Issuer Rating; Outlook Negative
MEXICO: Industrial Output Falls in August


P U E R T O    R I C O

EDGARDO ACEVEDO BADILLO: Ch. 11 Plan Hearing Slated for Nov. 3
MEGA AGROCENTRO: Seeks to Hire Jose Calderon as New Legal Counsel
SOTO REEFER: Seeks to Employ Moreno and Soltero as Counsel


T R I N I D A D  &  T O B A G O

PETROTRIN: Eyes New Technology Amid Declining Crude Production


V I R G I N   I S L A N D S

CARIBBEAN COMMERCIAL: Chapter 15 Case Summary


V E N E Z U E L A

VENEZUELA: Cuts Congress Out of Budgetary Process


X X X X X X X X X

LATAM: Economy to Contract 0.90 pct. in 2016, ECLAC Says


                            - - - - -


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A R G E N T I N A
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CORDOBA PROVINCE: Moody's Rates USD150MM Class 1 Notes B3
---------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has
assigned B3 (Global Scale) and Baa2.ar foreign currency debt
ratings (on Argentina National Scale) to Class 1 Notes for up to
USD150 million to be issued by the Province of Cordoba under its
Provincial Issuance Program for up to USD260 million.  The ratings
are in line with the Province's current long term foreign currency
issuer ratings, which carry stable outlook.

                          RATINGS RATIONALE

The Notes will be issued under the Provincial's Issuance Program
for up to USD260 million created by Governor's Decree N1.250.
Class 1 under the program, will constitute direct, unconditional,
secured and unsubordinated obligations of the Province, ranking at
all times pari passu without any preference among other debts.
Class 1 will be issued and payable in US dollars and sold in the
local capital market.  It will pay interest on a quarterly basis,
maturity of ten years and amortize in 32 quarterly and equal
installments equivalent to 3.125% of principal since the 27th
month.

The assigned ratings to Class 1 are in line with the Province's B3
(Global Scale) and Baa2.ar (Argentina's National Scale) foreign
currency debt ratings because the Notes do not present any credit
enhancements that differentiate them from the general solvency of
the province.

According to the term sheet reviewed by Moody's, the expected
amount under Class 1 will represent less than 3% of the Province's
total revenues budgeted for 2016.  After the issuance of these
Notes and coupled with other debts already taken during this year,
Moody's anticipates that the ratio of total outstanding debt
relative to total revenues at the end of current fiscal year will
grow up to 32% approximately -from the 27% calculated at the end
of 2015-.  This projected level is still consistent with the
assigned ratings.

The assigned ratings are based on preliminary documentation
received by Moody's as of the rating assignment date.  Moody's
does not expect changes to the documentation reviewed over this
period nor anticipates changes in the main conditions that the
Notes will carry.  Should issuance conditions and/or final
documentation of these Notes deviate from the original ones
submitted and reviewed by the rating agency, Moody's will assess
the impact that these differences may have on the ratings and act
accordingly.

                WHAT COULD CHANGE THE RATING UP/DOWN

Given the strong macroeconomic and financial linkages between the
Government of Argentina's and Sub-sovereigns an upgrade in the
Argentine sovereigns ratings and/or a systemic improvement coupled
with lower idiosyncratic risks arising from this Province -for
instance with a sustained record of cash financing and operating
surpluses in the two digits range- could exert an upward pressure
in Cordoba's current ratings.  Conversely, a downgrade in
Argentina's bond ratings and/or further systemic deterioration or
idiosyncratic risks arising in this issuer -i.e. a rapid and sharp
growth in the ratio of debt to total revenues- could exert
downward pressure on the ratings assigned and could translate into
a downgrade in the near to medium term.

The principal methodology used in this rating was Regional and
Local Governments published in January 2013.

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


MASTELLONE HERMANOS: S&P Affirms 'B-' CCR; Outlook Remains Stable
-----------------------------------------------------------------
S&P Global Ratings said that it has affirmed its 'B-' corporate
credit and issue-level ratings on Mastellone Hermanos S.A.  The
outlook remains stable.

The ratings on Mastellone are at the same level as those on
Argentina, as S&P believes that the company wouldn't be able to
serve its debts in full following a sovereign default.  In such a
scenario, S&P considers that Mastellone would face margin
compression from inflation, working capital peaks due to payment
chain disruptions, and heightened currency risks because a
meaningful portion of its debt is dollar-denominated while its
cash flow generation is predominantly domestic.

Mastellone experiences price volatility on its main products,
particularly powdered milk, and its bargaining power is somewhat
limited between retail chains and raw milk producers.  These
factors both put pressure on margins, especially in times of high
inflation.  Despite this, Mastellone has remained a key player in
the Argentine dairy industry for many decades due to its
nationwide distribution system and well-known product portfolio,
which contributes to its dominant market share (almost 70% share
in the fluid milk market and around 45% in the butter market).

S&P's assessment of Mastellone's financial risk profile mainly
reflects the volatility of its cash flows and relatively
aggressive leverage, though this is improving.  The company is
exposed to currency risks but its dollar debt is due in 2021,
which reduces the risks associated with the potential depreciation
of the peso.  The company was able to pay down the majority of its
short-term obligations during the second quarter of 2016, and S&P
estimates that it will generate enough foreign currency to meet
its annual interest expenses.

Mastellone had been subject to strict price-control programs
imposed by the government that limited its ability to fully pass
along cost increases to customers.  S&P believes it compares
unfavorably in this respect with dairy producers in other regions,
leading S&P to apply a one-notch negative adjustment to its stand-
alone credit profile (SACP), which is S&P's assessment of an
issuer's underlying creditworthiness before taking into
consideration sovereign influence.  Price controls have been
gradually lifted by President Macri's administration and S&P
believes they will disappear eventually.  The one-notch deduction
we apply to the SACP reflects the lingering effects of the price
controls and the country's high rate of inflation.

The lower pressure from easing price controls combined with better
international prices has been resulting in stronger credit metrics
in the past quarters.  S&P expects this to gradually bolster
EBITDA generation and cash flows.

For the next 12 months, S&P's base-case scenario assumes these
factors:

   -- Argentina's real GDP to contract by 1% in 2016 and grow by
      3% in 2017.

   -- Inflation of 42% at the end of 2016 (38.3% on average for
      the year) and 25% at the end of 2017 (32.3% on average for
      the year).  An average exchange rate of 14.59 Argentine
      pesos (ARS) per U.S. dollar in 2016 and 16.50 in 2017.

These assumptions would result in EBITDA generation of
ARS1.3 billion in 2016 and ARS1.5 billion in 2017.

S&P forecasts Mastellone's debt-to-EBITDA ratio at 2.4x in 2016
and 2.5x in 2017, and its ratio of funds from operations (FFO) to
debt at 29.2% in 2016 and 30.2% in 2017.

"We assess Mastellone's liquidity as less than adequate.  Despite
our expectation that sources will exceed uses by at least 1.5x, we
believe the company has limited ability to withstand a high-
impact, low-probability event.  Our liquidity assessment is also
constrained by its track record of recent debt restructuring,
which means we don't see it as having a satisfactory standing in
credit markets," S&P said.

The stable outlook reflects S&P's expectations that Mastellone
will maintain a stable operating performance and its position as
an industry leader in Argentina, while keeping credit metrics in
line with S&P's base case over the next year.

S&P could lower the ratings if the company's challenging operating
environment worsens due to an increase in milk prices paid to
suppliers or if the international market returns to a declining
trend.  The company has a high sensitivity to variations in milk
prices, and the inherent volatility of the dairy business
heightens the risk that a change in prices could weaken the
company's liquidity prospects, challenging its ability to meet
short-term commitments.  Another source of pressure could come
from a sovereign downgrade, although S&P views this as not likely
for the moment.

S&P considers the prospects for an upgrade to be limited due to
Mastellone's high exposure to Argentina.  An upgrade of Mastellone
in the next 12 months is subject to S&P raising the rating on
Argentina.

S&P could revise upward the SACP if the company is able to sustain
debt-to-EBITDA ratios consistently between 2x and 3x and FFO-to-
debt between 30% and 45% while it strengthens its links with local
financial institutions.


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


BANCO CITIBANK: Moody's Affirms Ba3 Deposit Ratings; Outlook Neg.
-----------------------------------------------------------------
Moody's Investors Service affirmed Banco Citibank S.A.'s (Citi
Brazil) long-term global foreign-currency deposit rating of Ba3,
and the short-term foreign-currency deposit rating of Not Prime.
Moody's also affirmed the baseline credit assessment (BCA) of ba2;
the adjusted BCA of ba1; and the long- and short-term counterparty
risk assessments of Baa3(cr) and Prime-3(cr), respectively.  The
outlook remains negative.

This rating action follow Banco Citibank S.A.'s announced sale of
the retail operations in Brazil to Itau Unibanco Holding S.A.,
which is subject to regulatory approvals.

These ratings and assessments were affirmed:

Issuer: Banco Citibank S.A.

Affirmations:
  Adjusted Baseline Credit Assessment, ba1
  Baseline Credit Assessment, ba2
  Long Term Counterparty Risk Assessment, Baa3(cr)
  Short Term Counterparty Risk Assessment, P-3(cr)
  Senior Unsecured Deposit Rating (Foreign Currency), Ba3
  Short Term Deposit Rating (Foreign Currency), NP

Outlook:

Issuer: Banco Citibank S.A.
  Remains Negative

                         RATINGS RATIONALE

The affirmations reflect the deal's positive expected impacts on
Citi Brazil's capital and liquidity, which will be counterbalanced
by a higher reliance on market funds, while the effects on asset
risk and profitability will be mixed.

The bank's narrowed focus on corporate and investment banking will
enable it to compete more effectively and scale up more
efficiently, while better leveraging synergies with its parent,
Citibank N.A. (A1 stable, baa2 BCA).  Consequently, the bank's
profitability should improve.  Although the sale of retail
operations will reduce the bank's asset and revenue
diversification, this segment provided limited benefits given its
small scale; the assets being transferred accounted for just 30%
of Citi Brazil's total loan portfolio and 10% of its total assets.

In addition, due to the large gain Citi Brazil will make on the
sale coupled with the resulting reduction of risk weighted assets,
the transaction is expected to result in a significant boost to
Citi Brazil's adjusted capitalization levels, which Moody's
estimates will rise to 12.2% from the current 10.9%.  Although the
bank's parent could choose to take an extraordinary dividend,
Moody's expects the bank to preserve a capitalization at least in
line with current levels.

In terms of asset risk, Citi Brazil's loan portfolio will have
lower diversification, as it will become mainly concentrated on
corporate exposures.  However, this segment has historically been
lower risk than the bank's consumer loan portfolio.  Consequently,
non-performing loans are likely to decrease.  Moreover, borrower
concentrations are expected to remain manageable, with exposure to
the 20 largest borrowers likely to remain in line with the current
level of 86% of its TCE.

While Citi Brazil's relative reliance on market funds will
increase as it will no longer benefit from the granular deposits
provided by the retail operations, funding risks will be mitigated
by the significant volume of funding provided by the bank's
parent, which equaled 18% of its tangible banking assets as of
June 2016, coupled with the large amount of liquid resources held
by the bank, equivalent to 44.8% of tangible banking assets.

                WHAT COULD MAKE THE RATING GO DOWN

The negative outlook reflects the negative outlook on the
sovereign given the close credit interlinkages between the
sovereign and the bank.  This rating will likely be downgraded if
Brazil's sovereign rating and its foreign currency deposit ceiling
are downgraded.

Citi Brazil's BCA could be downgraded if the bank's asset risk and
profitability are negatively impacted by the sale of the retail
operations; if the parent decides to reduce the subsidiary's
capital position to lower levels than currently recorded; or if
the higher reliance on market funds is not properly
counterbalanced with an adequate level of liquid resources.
However, this would not have an effect on the deposit rating,
which is currently constrained by the country ceiling.

                 WHAT COULD MAKE THE RATING GO UP

As indicated by the negative outlook, Citi Brazil's rating does
not currently face upward pressure. However, the outlook could be
stabilized if the outlook on the Brazilian sovereign stabilizes.

                METHODOLOGIES & LAST RATING ACTION

The principal methodology used in these ratings was Banks
published in January 2016.

The last rating action on Banco Citibank S.A. was on Feb. 25,
2016, when Moody's downgraded the bank's BCA to ba2, from baa3,
the adjusted BCA to ba1, from baa2, as well as the long and short-
term foreign currency deposit ratings to Ba3/Not Prime, from
Baa3/Prime-3, following the downgrade of Brazil's government bond
rating to Ba2, from Baa3 and the downgrade of Brazil's foreign
currency deposit ceiling to Ba3, from Baa3.  The counterparty risk
assessments assigned to Citi Brazil were also downgraded to
Baa3(cr)/Prime-3(cr), from Baa1(cr)/Prime-2(cr).  The outlook of
the bank's ratings was changed to negative in line with the
negative outlook on the sovereign bond rating.

Banco Citibank S.A. is headquartered in Sao Paulo, Brazil, and
reported total assets of BRL81.2 billion ($25.3 billion) and
equity of BRL8.3 billion ($2.6 billion) as of June 30, 2016.


BANCO DAYCOVAL: Moody's Rates New Sr. Unsec. Banknotes Ba2
----------------------------------------------------------
Moody's America Latina Ltda (MAL) assigned a Ba2 global local
currency debt rating and a Aa2.br national scale debt rating to
the new two-year local currency senior unsecured banknotes (letras
financeiras) to be issued by Banco Daycoval S.A.  The proposed
banknotes will be due November 2018, for a total between BRL200.1
million and BRL400.05 million.  The outlook on the rating is
negative in line with the outlook on the bank's global scale
deposit rating.

                        RATINGS RATIONALE

The rating reflects Daycoval's consistent earnings generation
capacity supported by a disciplined risk profile and low leverage
ratios, factors that compare well to other Brazilian midsized
banks specializing in commercial lending.  Asset quality remains
adequate despite the deterioration of the bank's 90-day problem
loan ratio, which doubled to 1.8% of total loans in June 2016,
compared to same period in 2015, as the corporate borrowers
continue to face earnings and liquidity pressures due to Brazil's
challenging operating environment.  In addition, Daycoval
maintains a high loan loss reserve buffer, which reached 6.5% of
total loans in June 2016, and strong capitalization of 14.64%
measured by Moody's, both factors that protect the bank against
unexpected loan losses.

In 1H16, profitability pressure resulted from a contraction in
loan originations and credit costs of nearly 60% of pre provision
income in the period, the highest level over the past four years.
We expect these pressure to persist over the next three quarters
as the bank maintains a conservative loan origination strategy
amid a still weak, but gradually recovering, economy.

Daycoval's global scale rating is speculative grade, largely
because of Brazil's challenging operating environment and tight
credit inter-linkages with the Brazilian sovereign, also rated Ba2
in global scale.  Daycoval's Aa2.br national scale rating (NSR),
which corresponds to its Ba2 global scale rating, reflects that it
is one of the stronger credits in Brazil.  At the same time, the
NSR considers the bank's less diversified operations and lack of
scale, as well as its greater dependence on market funding,
compared to Aa1.br rated peers.  However, Daycoval benefits from
more consistent earnings and more disciplined risk guidelines than
Aa3.br peers.

The negative outlook on Daycoval's Ba2 deposit rating is in line
with the negative outlook on Brazil's government bond rating.

                  WHAT WOULD CHANGE THE RATING UP

There is no upward pressure at the moment as ratings currently
have a negative outlook aligned to the outlook of the sovereign
rating.  However, the outlook could stabilize if and when the
sovereign outlook stabilizes.

                WHAT WOULD CHANGE THE RATING DOWN

Negative rating pressure would come from a downgrade of the
country's bond rating or further deterioration in asset quality
combined with a significant reduction in earnings.

                METHODOLOGY & LAST RATING ACTION

The principal methodology used in these ratings was Banks
published in January 2016.

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

Moody's last rating action on Banco Daycoval was on 25 February
2016, when Moody's lowered the baseline credit assessment (BCA) to
ba2, from baa3, and downgraded the bank's long and short-term
local and foreign currency deposit ratings to Ba2/Not Prime and
Ba3/Not Prime, following the downgrade of Brazil's government bond
rating as well as the country's ceiling for foreign currency
deposits.  The Brazilian long-term national scale deposit rating
was also downgraded to Aa2.br.  At the same time, Daycoval's local
and foreign currency senior unsecured debt ratings were downgraded
to Ba2 and the national scale rating assigned to the local
currency banknote program and outstanding notes was also
downgraded to Aa2.br.  The counterparty risk assessment (CRA) was
lowered to Ba1(cr) and NP(cr), for long and short-term
respectively.  The outlook on the global scale ratings was placed
on negative, in line with the negative outlook at the sovereign
bond rating.

Banco Daycoval is headquartered in Sao Paulo, Brazil, with total
assets of BRL20.52 billion (USD6.4 billion) and equity of BRL2.85
billion (USD1.2 billion) as of June 30, 2016.


ITAU UNIBANCO: Moody's Affirms Ba2 Local Currency Deposit Ratings
-----------------------------------------------------------------
Moody's Investors Service has affirmed all ratings and assessments
assigned to Itau Unibanco S.A., including the bank's baseline
credit assessment (BCA) of ba2, the global local currency deposit
ratings of Ba2, as well as the foreign currency deposit ratings of
Ba3 and senior unsecured ratings of Ba2, and the Brazilian
national scale deposit rating of Aa1.br.  At the same time,
Moody's also affirmed all ratings assigned to Itau's bank-holding
company, Itau Unibanco Holding S.A. (IUH), as well as to Itau
Unibanco S.A. Cayman Branch.  All short term ratings assigned to
these entities were also affirmed.  The outlook on the long-term
global scale ratings remained negative, in line with the negative
outlook on Brazil's government bond rating.

This rating action followed the announcement on Oct. 8, 2016, that
Itau entered into an Equity Interest Purchase Agreement with Banco
Citibank S.A. (Citi Brazil) to acquire its retail-banking platform
for BRL710 million, to be paid in cash.  The completion of the
transaction is subject to final regulatory approvals.

These ratings and assessments assigned to Itau Unibanco S.A. were
affirmed:

  Long-term global local currency deposit rating of Ba2, with
   negative outlook
  Short-term global local currency deposit rating of Not Prime
  Long-term foreign currency deposit rating of Ba3, with negative
   outlook
  Short-term foreign currency deposit rating of Not Prime
  Long-term foreign currency senior unsecured MTN rating of (P)Ba2
  Brazilian long-term national scale deposit rating of Aa1.br
  Brazilian short-term national scale deposit rating of BR-1
  Baseline credit assessment of ba2
  Adjusted baseline credit assessment of ba2
  Long-term counterparty rating assessment of Ba1(cr)
  Short-term counterparty risk assessment of Not Prime(cr)

These ratings assigned to Itau Unibanco S.A. Grand Cayman Branch
were affirmed:

  Long-term foreign currency deposit Program rating of (P)Ba3
  Long-term foreign currency senior unsecured MTN rating of (P)Ba2
  Long-term counterparty rating assessment of Ba1(cr)
  Short-term counterparty risk assessment of Not Prime(cr)

These ratings assigned to Itau Unibanco Holding S.A. were
affirmed:

  Long-term global local currency issuer rating of Ba3, with
   negative outlook
  Short-term global local currency issuer rating of Not Prime
  Long-term foreign currency senior unsecured MTN rating of (P)Ba3
  Short-term foreign currency senior unsecured MTN rating of
   (P)Not Prime
  Foreign currency subordinated MTN rating of (P)Ba3
  Long-term Brazilian national scale issuer ratings of A1.br
  Short-term Brazilian national scale issuer ratings of BR-1

These ratings assigned to Itau Unibanco Holding S.A. Grand Cayman
Branch were affirmed:

  Long-term foreign currency senior unsecured debt rating of Ba3;
   negative outlook
  Long-term foreign currency senior unsecured MTN rating of (P)Ba3
  Short-term foreign currency senior unsecured MTN rating of
   (P)Not Prime
  Foreign currency subordinated debt rating of Ba3
  Foreign currency subordinated MTN rating of (P)Ba3

                         RATINGS RATIONALE

The affirmation of Itau's ratings acknowledges the limited
implication for Itau's financial fundamentals or business
prospects arising from its acquisition of Citi Brazil's retail
businesses, which will preserve Itau's position as the leader in
credit card business and high-income segment.  The acquired
business have BRL6 billion in loans, 1.1 million issued credit
cards, 71 branches, BRL35 billion in deposits and assets under
management, an insurance brokerage, and two small equity
investments in a technology company TECBAN S.A. (unrated), and a
securitization company Cibrasec S.A. (unrated).

As Citi Brazil had just 0.4% of the market for consumer loans,
compared to Itau's 11.34%, the transaction will not significantly
increase Itau's market participation.  Even Citi Brazil's 2.1% of
the credit card market will only marginally increase Itau's 32.5%
leading position.  Moreover, we estimate that a significant
portion of Citi's customers already maintain accounts with and/or
have cards or other loans issued by Itau, as both banks focus on
the high income segment.  While Itau's share of their wallet may
grow following the acquisition, we note that the bank will likely
face some attrition from Citi's customers, particularly while the
acquisition awaits regulatory approval.  Consequently, in Moody's
view, the move is largely defensive.

The transaction is aligned with Itau's strategy of reinforcing its
position in the retail banking segment, with a strong focus on
high-income individuals, and is expected to provide cross-selling
opportunities in the medium term and further enhance fee-based
earnings generation.  In June 2016, non-interest income accounted
for 60.4% of Itau's consolidated bottom line results.

By Moody's estimates, although the transaction will reduce Itau's
fully adjusted core capital ratio a relatively limited 35 basis
points, which can be rapidly replenished by the bank's
historically strong internal capital generation capacity.

This transaction follows Itau's announcement on Sept. 29, 2016,
that it also agreed to purchase the remaining 40% stake in payroll
loan specialized bank Banco Itau BMG Consignado S.A. (unrated),
the joint-venture Itau had with Banco BMG S.A. (B1 stable, b1),
for BRL 1.28 billion in cash.  The deal, which will have a minimal
impact on Itau's capitalization, is aligned to its strategy of
focusing on low-risk products, such as the payroll loans, where
Itau already has a 16.5% market share.  The two transactions are
completely unrelated with one another, and Moody's does not expect
any further transactions to be forthcoming.

                 WHAT COULD CHANGE THE RATINGS DOWN

As deposit and debt ratings assigned to Itau are currently
constrained by Brazil's sovereign bond ratings of Ba2, given the
close credit inter-linkages between the Brazilian sovereign and
the country's banks, the negative outlook on these ratings is in
line with the negative outlook on the sovereign rating.
Consequently, the bank's ratings will face downward pressure if
the sovereign is downgraded.

Itau's BCA could also be downgraded if the bank experiences a
sharp rise in credit expenses, or if competitive pressures trigger
substantial margin and earnings compression, reducing the bank's
capital replenishment capacity.  While a downgrade of the BCA
would not affect the banks' global scale senior debt and deposit
ratings given the high probability that Itau would receive
financial support from the government in the event of stress, the
national scale ratings could potentially face downward pressure in
such a scenario.

                         LAST RATING ACTION

The last rating action on Itau Unibanco S.A. was on May 11, 2016,
when Moody's upgraded its Brazilian long-term national scale
deposit rating to Aa1.br, from Aa2.br, in light of the
recalibration of Brazil's national scale and repositioning of the
ratings.  All other ratings assigned to Itau Unibanco S.A.
remained changed.

The last rating action on Itau Unibanco S.A. Cayman Branch was on
Feb. 25, 2016, when Moody's downgraded the entity's long-term
foreign currency deposit program rating to (P)Ba3, from (P)Baa3,
and its long-term foreign currency senior unsecured MTN rating to
(P)Ba2, from (P)Baa3.  At the same time, Moody's also lowered the
entity's counterparty risk assessments (CRAs) for long and short-
term to Ba1(cr) and Not Prime(cr), respectively.

The last rating action on Itau Unibanco Holding S.A. was on
May 11, 2016, when Moody's upgraded its Brazilian long-term
national scale issuer rating to A1.br, from A2.br, in light of the
recalibration of Brazil's national scale and repositioning of the
ratings.  All other ratings assigned to Itau Unibanco Holding
remained changed.

The last rating action on Itau Unibanco Holding S.A. Cayman Branch
was on 25 February 2016 when Moody's downgraded the entity's long-
term local currency issuer rating to Ba3, from Ba1, its long-term
foreign currency senior unsecured debt rating to Ba3, from Ba1, as
well as the long-term foreign currency senior unsecured MTN rating
to (P)Ba3, from (P)Ba1,and the foreign currency subordinated debt
rating to Ba3, from Ba1, and the foreign currency subordinated MTN
rating to (P)Ba3, from (P)Ba1.  The short-term foreign currency
senior unsecured MTN rating of Not Prime remained unchanged.  The
outlook on the foreign currency senior unsecured debt rating was
changed to negative, in line with the negative outlook on Brazil's
sovereign bond rating.

                          METHODOLOGY USED

The principal methodology used in these ratings was Banks
published in January 2016.

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

While NSRs have no inherent absolute meaning in terms of default
risk or expected loss, a historical probability of default
consistent with a given NSR can be inferred from the GSR to which
it maps back at that particular point in time.  For information on
the historical default rates associated with different global
scale rating categories over different investment horizons, please
see:

https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_
189530

Itau Unibanco Holding S.A. is headquartered in Sao Paulo, Brazil
and had total consolidated assets of BRL1,395.9 billion
($435.7 billion) and equity of BRL110.6 billion ($34.5 billion) as
of June 30, 2016.



PETROLEO BRASILEIRO: Unit Sale Said to Lure Brazil Banking Clans
----------------------------------------------------------------
Cristiane Lucchesi and Sabrina Valle at Bloomberg News report that
the Brazilian bankers who joined forces last decade to form Latin
America's largest lender are seeking to buy control of the
country's giant fuel distribution business from Petroleo
Brasileiro SA, people with direct knowledge of the matter said.

The Setubal and Vilella families' Itausa -- Investimentos Itau SA
and the Moreira Salles family's Cambuhy Investimentos Ltda. are
planning to make a joint bid for a controlling stake in
Petrobras's BR Distribuidora in a deal that could reach $6
billion, the people said, asking not to be identified because the
discussions are private, according to Bloomberg News.

Bloomberg News notes that Vitol Group of Cos., the world's largest
independent oil trader, as well as private equity firms GP
Investimentos SA and Advent International Corp., are also
considering an offer, the people said.

Bloomberg News says that Petrobras, the most indebted major oil
producer, is speeding up asset sales as Chief Executive Officer
Pedro Parente seeks to put the state-run company back on its feet
after lower oil prices, policies to subsidize fuel and a
corruption probe led to multibillion losses.

After announcing $9.8 billion in sales since 2015, mostly after
Mr. Parente took over the helm, the producer aims to raise at
least another $5.3 billion by December and $19.5 billion between
2017 and 2018, Bloomberg News notes.

                       Majority Stake

Petrobras has started sending material with information on the
unit to prospective partners, the company said in a filing.
Binding offers will only be made next year, Mr. Parente told
reporters in Rio de Janeiro on Sept. 21, Bloomberg News relays.
The company aims to sell 51 percent of BR Distribuidora's voting
shares.

A group led by Brookfield Asset Management Inc. agreed to buy a 90
percent stake in Nova Transportadora do Sudeste, Petrobras's
natural gas distribution unit, for about $5.2 billion, Brookfield
said in a statement on Sept. 23, Bloomberg News says.

The Setubal and Moreira Salles families agreed to merge their
banks in 2008 to form Itau Unibanco Holding SA, currently worth
about $63 billion, making it the largest lender in the region by
market value. Some of the other investors may form a consortium to
vie for the stake in BR Distribuidora, the people said, Bloomberg
News notes.

"Most of Itausa's holdings are Itau's shares, so investors who buy
the stock are interested in the banking sector, not fuel
distribution," said Vitor Suzaki, an analyst at Lerosa
Investimentos, Bloomberg News adds.

As reported in the Troubled Company Reporter - Latin America on
Aug. 1, 2016, S&P Global Ratings affirmed its 'B+' global scale
ratings on Petroleo Brasileiro S.A. - Petrobras (Petrobras),
including its corporate credit ratings and the ratings on the
senior unsecured notes issued through Petrobras International
Finance Co. and Petrobras Global Finance B.V.


SAO MARTINHO: S&P Affirms 'BB+' CCR; Outlook Remains Stable
-----------------------------------------------------------
S&P Global Ratings said it affirmed its 'BB+' global scale and
'brAA+' Brazil national scale corporate credit ratings on Sao
Martinho S.A. (SMO).  The outlook remains stable.  S&P do not rate
any of the company's debt.

The stable outlook reflects S&P's expectation that the ratings on
SMO will remain the same over the next 12 months to 18 months.
S&P expects the company to post stronger credits metrics over the
next two years, despite the still high capex levels, benefiting
from its sound operating efficiency, assertive hedging strategy,
and the current higher sugar prices. In this scenario, debt to
EBITDA should be about 2x-2.5x, FFO to debt about 35%-40%, and
FOCF to debt approaching 10% in fiscal 2017.

Although unlikely given S&P's expectation of continuous
improvements of metrics, a negative rating action could stem from
adverse weather conditions affecting its agricultural yields
combined with an abrupt reversal in sugar or ethanol prices,
weakening its FOCF generation and pressuring its liquidity cushion
under the stress scenario to be rated above the sovereign.  In
this scenario, S&P would see debt to EBITDA closer to 4x, FFO to
debt below 20%, and FOCF close to zero or negative.

A positive rating action in the next 12-18 months is possible if
the company uses the expected stronger cash flow generation to
accelerate debt reduction while it maintains its above-average
profitability and adequate liquidity position to be rated above
Brazil.  S&P would expect to see its FOCF around 15% and debt to
EBITDA consistently below 3x, even in a downward cycle for sugar
prices and currency volatility.  Also, S&P currently assess that
its ratings on SMO are limited up to two notches above Brazil's
sovereign ratings, therefore, an upgrade of SMO would be limited
to the ratings and outlook on the sovereign.


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


ATMU INC: Wind Up Petition Hearing Set for Nov. 10 in Cayman
------------------------------------------------------------
Benjamin Robertson and Cathy Chan at Bloomberg News report that
Carlyle Group LP funds are taking legal action against Chinese
automated teller machine company ATMU Inc., claiming to be owed
$368.9 million after ATMU allegedly missed a four-year deadline
for an initial public offering.

Bloomberg relates that the Hong Kong-based Carlyle Asia Growth
Partners IV and CAGP IV Co-investment filed a winding-up petition
against ATMU in the Grand Court of the Cayman Islands this month,
seeking to recoup their investments. The Chinese company was
incorporated in the Caymans in 2006, according to the legal
document cited by Bloomberg.

According to Bloomberg, the legal filing comes six years after
Carlyle Asia Growth Partners IV announced that it was investing in
ATMU, which private equity firm Carlyle described that year as
China's "largest independent automated teller machine operator and
service provider."

The funds have the right to redeem their shares and exit because
no IPO took place within four years of their May 2010 investments,
the winding-up petition alleges, Bloomberg relates. ATMU hasn't
responded to redemption notices and letters delivered to its
registered office in the Caymans, the petitioners allege, says
Bloomberg.

In a statement to Bloomberg, ATMU said it was trying to find ways
for financial investors to exit, without saying why it hadn't paid
them out.

"Although ATMU did not conduct an IPO due to the fluctuating stock
market in recent years, the company is helping financial investors
to seek proper exit channels, including but not limited to capital
market activities," Bloomberg quotes Peng Yafeng, an ATMU
administration office director, as saying in an e-mail. "ATMU is
confident that it can redeem the shares of the financial
investors."

Peng said that the company's operations were "good" and it was
"capturing new market opportunities," relays Bloomberg.

Bloomberg relates that in 2010, Carlyle said ATMU had a 15 percent
share of China's ATM market and "an exclusive cooperation
agreement" with Postal Savings Bank of China Co., the giant state
lender that is now on the verge of listing on Hong Kong's stock
exchange.

A Postal Savings Bank press officer in Beijing said that ATMU had
supplied the bank with some ATM facilities and maintenance
services, adds Bloomberg.

Bloomberg says the winding-up petition asks for PwC staff in the
Caymans, China and Hong Kong to be appointed as liquidators and
said a court hearing will take place in the Caymans on Nov. 10.


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


DOMINICAN REPUBLIC: Builders, Developers Seek to Scrap 50% Tax
--------------------------------------------------------------
Dominican Today reports that Dominican Republic housing builders
and developers association (Acoprovi) President Hector Breton
joined the call for the government to scrap the planned 50% ITEBI
tax (VAT) on raw materials, industrial machinery and capital
gains.

"If this levy is enacted the liquidity of the industry will be
affected, which directly impacts the cost of many industrial
materials used for the construction of works and housing," the
report quoted Mr. Breton as saying.

Mr. Breton noted that president Danilo Medina declared 2016 'Year
of Housing.'  "He has a great vision on the importance of this
sector, so he should continue to encourage housing construction
and not make decisions that affect the goal of reducing the
housing deficit," Mr. Breton added.

Mr. Medina recently submitted to Congress the bill for the 2017
Budget, which amends Law 392-07 on Industrial Innovation, which
creates the regulator Proindustria, and instructs Customs to
charge a 50% Tax ITBIS in advance, Dominican Today notes.

A bicameral committee hears and evaluates the request by several
major business sectors, which complain that the measure will
reduce the capital that should be set aside for production, the
report relays.

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 A I T I
=========


* HAITI: IDB President Pledges Support for in Wake of Hurricane
---------------------------------------------------------------
IDB President Luis Alberto Moreno issued a statement pledging
support for Haiti in wake of Hurricane Matthew:

In the name of the Inter-American Development Bank (IDB) I would
like to express our deepest sympathy and solidarity to the people
and authorities of Haiti for the loss of life and injuries caused
by Hurricane Matthew.

IDB staff members on the ground in Port-au-Prince are working with
the Haitian Government to coordinate efforts to assess losses and
determine reconstruction efforts to be carried out jointly with
the international community.

"We are also working with the Ministry of Public Works and other
agencies to prioritize efforts to restore access to roads and
bridges to isolated and vulnerable communities."

"We extend our sympathies and solidary to other Caribbean nations
affected by this tragedy.


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


CHICOLOAPAN: Moody's Affirms Ba3 Issuer Rating; Outlook Negative
----------------------------------------------------------------
Moody's de Mexico affirmed the Ba3/A3.mx issuer ratings of
Chicoloapan and maintained the negative outlook.  Moody's will
withdraw the ratings on the next business day.

                        RATINGS RATIONALE

The affirmation of the ratings reflects that according to
available information and Moody's estimates, the municipality
posted a positive gross operating balance and a moderate cash
financing deficit in 2015 of approximately 5% of total revenues in
line with a Ba3 rating.  Moreover, according to the Federal Debt
Registry, Chicoloapan has not acquired additional long term debt.
As such, Moody's estimates that net direct and indirect debt was
equivalent to roughly 27% of total revenues, compared to a 26% in
2014.

The negative outlook reflects the outlook of the sovereign bonds
of the Government of Mexico (A3, negative).

Moody's will withdraw the ratings due to insufficient or otherwise
inadequate information to support the maintenance of the rating.

The principal methodology used in these ratings was Regional and
Local Governments published in January 2013.

The period of time covered in the financial information used to
determine Chicoloapan de Juarez, Municipality of rating is between
01/01/2011 and 31/12/2014 (source: issuer).


MEXICO: Industrial Output Falls in August
-----------------------------------------
Anthony Harrup at The Wall Street Journal reports that Mexican
industrial production struggled to gain traction in August as
moderate gains in manufacturing were offset by continued declines
in mining output and construction.

Industrial production fell 0.4% seasonally adjusted from July and
was up just 0.3% from August 2015, the National Statistics
Institute said, according to The Wall Street Journal.

Output had been expected to rise 0.7% from a year before,
according to the median estimate of nine economists polled by The
Wall Street Journal.

Oil and gas production fell 6.4% from a year earlier, and mining
of metals and other minerals declined 6.5%. Government spending
cuts continued to weigh on construction, which decreased 0.6% from
a year before, the report notes.  Construction in infrastructure
was down 19%.

Manufacturing production, which has been limited by weak export
demand, especially from the U.S., rose 3.7% from August 2015 and
was 0.2% higher than in July in seasonally adjusted terms, the
report relays.

In raising interest rates late last month in response to inflation
pressures from a weaker currency, the Bank of Mexico noted a
"certain recovery" in some indicators, including manufacturing in
the auto industry and other sectors, the report notes.

Speaking at an event, central bank deputy governor Javier Guzman
said that manufactured exports, while still sluggish, appeared to
have stopped declining, the report says.

"The anticipated upturn of industrial output in the U.S., if
materialized, would contribute to a more balanced economic
recovery in Mexico through its impact on manufacturing output and
exports," the report quoted Mr. Guzman as saying.

U.S. manufacturing, which is a key driver of demand for Mexican
factory exports, fell 0.4% in August and was also down 0.4% from a
year before, the report adds.


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


EDGARDO ACEVEDO BADILLO: Ch. 11 Plan Hearing Slated for Nov. 3
--------------------------------------------------------------
Judge Edward A. Godoy has conditionally approved the disclosure
statement describing the Chapter 11 plan dated Sept. 25, 2016,
filed by Edgardo Acevedo Badillo and Jennifer Enid Jimenez.

The Debtors and parties in interest may now solicit votes on the
debtor's Plan of Reorganization pursuant to 11 U.S.C. Section
1125.

Acceptances or rejections of the Plan may be filed in writing by
the holders of all claims on/or before 14 days prior to the date
of the hearing on confirmation of the Plan.

Any objection to the final approval of the Disclosure Statement
and/or the confirmation of the Plan shall be filed on/or before 14
days prior to the date of the hearing on confirmation of the Plan.

The Debtor will file with the Court a statement setting forth
compliance with each requirement in section 1129, the list of
acceptances and rejections and the computation of the same, within
seven working days before the hearing on confirmation.

A hearing for the consideration of the final approval of the
Disclosure Statement and the confirmation of the Plan and of such
objections as may be made to either will be held on Nov. 3, 2016
at 9:30 a.m. at the U.S. Bankruptcy Court, Southwestern Divisional
Office, MCS Building, Second Floor, 880 Tito Castro Avenue, Ponce,
Puerto Rico.

                        The Chapter 11 Plan

As reported in the TCR, Edgardo Acevedo Badillo and Jennifer Enid
Jimenez filed with the U.S. Bankruptcy Court for the District of
Puerto Rico a disclosure statement describing their Chapter 11
Plan dated Sept. 25, 2016.

General unsecured claims (Class G) total $129,169.  Class G
claimants will receive from the Debtor a non-negotiable, interest
bearing at 3.25% annually, promissory note dated as of the
Effective Date. Creditors in this class shall receive a total
repayment of 6% of their claimed or listed debt which equals to
$9,117 to be paid pro rata to all allowed claimants under this
class.  Unsecured Creditors will receive monthly payment of $75.98
to be distributed pro rata among them, for a 10-year term.  The
first payment will be made on June 1, 2017.

If Class G votes to accept the Plan, the total payment to the
holders of Class F claims will be increased to 10%, payable at
3.5% interest bearing note to be tendered upon the effective date
payable in 120 monthly installments from the effective date of the
plan.

A full-text copy of the Disclosure Statement is available at:

           http://bankrupt.com/misc/prb15-05928-87.pdf

                       About Edgardo Badillo

Edgardo Acevedo Badillo and Jennifer Enid Jimenez Ramos sought
protection under Chapter 11 of the Bankruptcy Code (Bankr. D.P.R.
Case No. 15-05928) on Aug. 3, 2015.  The Debtor is represented by
Miriam S. Lozada Ramirez, Esq.


MEGA AGROCENTRO: Seeks to Hire Jose Calderon as New Legal Counsel
-----------------------------------------------------------------
Mega Agrocentro Los Colobos, Inc. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire a new
legal counsel.

The Debtor proposes to substitute Jose Fuentes Calderon, Esq., in
place of Jesus Santiago Malavet, Esq., at Santiago, Malavet &
Santiago Law Offices P.S.C.

Mr. Calderon will be paid an hourly rate of $175 for his services,
which include advising the Debtor regarding its duties and
negotiating with creditors to formulate a Chapter 11 plan of
reorganization.

In a court filing, Mr. Calderon disclosed that he is a
"disinterested person" as defined in section 101(14) of the
Bankruptcy Code.

Mr. Calderon's contact information is:

     Jose R. Fuentes Calderon, Esq.
     P.O. Box 2419
     Isabela, PR 00662
     Phone: 787-608-5967
     Email: jfuentes@fuenteslawpr.com

                     About Mega Agrocentro

Mega Agrocentro Los Colobos, Inc. sought protection under Chapter
11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 16-00652) on
January 29, 2016.  The petition was signed by Ruth N. Monge
Santana, president.

At the time of the filing, the Debtor estimated assets of less
than $50,000 and liabilities of less than $500,000.


SOTO REEFER: Seeks to Employ Moreno and Soltero as Counsel
----------------------------------------------------------
Soto Reefer Containers Inc. seeks authorization from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ Moreno
and Soltero Law Office, LLC, as counsel.

The Debtor requires Moreno and Soltero to represent it in its
petition for relief under Chapter 11 of the Bankruptcy Code filed
on September 26, 2016.

Moreno and Soltero will be paid at an hourly rate of $180 and will
be reimbursed for reasonable out-of-pocket expenses incurred.

The Debtor says it has advanced Moreno and Soltero a $7,000
retainer, plus $1,717 filing fees.

Rosana Moreno Rodriguez, Esq., attorney at Moreno and Soltero,
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.

Moreno and Soltero can be reached at:

         Rosana Moreno Rodriguez, Esq.
         MORENO AND SOLTERO LAW OFFICE, LLC
         Trujillo Alto, PR 00977
         Tel.: (787) 750-8160
         Fax: (787) 750-8243
         Email: rmoreno@morenosolterolaw.com

Soto Reefer Containers, Inc., filed a Chapter 11 petition (Bankr.
D.P.R. Case No. 16-07602) on September 26, 2016, and is
represented
by Rosana Moreno Rodriguez, Esq., at Moreno & Soltero Law Office,
LLC.


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


PETROTRIN: Eyes New Technology Amid Declining Crude Production
--------------------------------------------------------------
Aleem Khan at Daily Express reports that taking up from where
Energy Minister Nicole Olivierre left off in her budget
contribution on October 7 in Parliament, chairman of Petrotrin
Andrew Jupiter said the State oil company had to arrest declining
crude production.

Chairman Jupiter was speaking at the Energy Caribbean conference
at the Hilton Trinidad and Conference Centre in St Ann's.

"We need to arrest the decline in production and then increase,"
he said in response to a question from the floor.

Petrotrin's oil output fell in August to 11,875 barrels of oil per
day (bopd) from 12,735 bopd a year earlier, according to Daily
Express.

Its natural gas output also fell in August, 50 per cent year-on-
year, from four million standard cubic feet per day (mmscfd) to
two mmscfd, the report notes.


                            About Petrotrin

Petroleum Company of Trinidad and Tobago is the major state-owned
oil company in Trinidad and Tobago.  The company was established
in 1993 by the merger of Trintopec and Trintoc, two state-owned
oil companies.  Petrotrin's main holdings are extensive, mature
onshore fields located across southern Trinidad.  Large areas
have been leased out to small private producers who are able to
make a profit on wells that are unprofitable for Petrotrin,
giving it higher labor costs.  The company operates a refinery at
Pointe-Pierre, just north of San Fernando in south Trinidad.
Most crude petroleum produced in Trinidad is exported without
being refined. The refinery depends on imported crude (mostly
from Venezuela), which is either used domestically or exported.

                         *     *     *

As reported in the Troubled Company Reporter-Latin America on July
23, 2015, Trinidad Express reports that state-owned Petroleum
Company of Trinidad and Tobago (Petrotrin) multiplied its losses
11.2 times to reach US$168 million for the nine months ended June
30 compared to US$15 million loss for the same period last year,
but its earnings before income tax, depreciation and amortisation
(EBITDA) rose 132 per cent between March and June, preliminary
financials show.

TCRLA reported on Dec. 2, 2014, that Trinidad and Tobago Newsday
said that in the face of falling global oil prices, which is
starring to impact on Trinidad and Tobago's earnings from its
petroleum resources, Petroleum Company of Trinidad and Tobago has
rolled out a plan to remain viable and to survive in the harsh
global oil industry.  Petrotrin said in a media release that it is
forging ahead with objective cost management decisions imperative
to secure its viability, according to Trinidad and Tobago Newsday.
The report said Petrotrin's operations have also been severely
impacted due to unfavorable margins.

The TCRLA reported on Jan. 21, 2014 that Trinidad Express, citing
Energy Minister Kevin Ramnarine, said Petrotrin will make a loss
for its 2013 financial year.  According to Mr. Ramnarine,
Petrotrin was scheduled to make the loss even before the series of
oil spills affecting Trinidad's southwestern peninsula since
December, reports Trinidad Express.


===========================
V I R G I N   I S L A N D S
===========================


CARIBBEAN COMMERCIAL: Chapter 15 Case Summary
---------------------------------------------
Chapter 15 Petitioner: William Tacon

Chapter 15 Debtor: Caribbean Commercial Investment Bank Ltd.
                   Ritter House
                   P.O. Box 3486
                   Wickhams Cay II
                   Tortola, British Virgin Islands

Chapter 15 Case No.: 16-12844

Type of Business: Commercial Bank

Chapter 15 Petition Date: October 11, 2016

Court: United States Bankruptcy Court
       Southern District of New York (Manhattan)

Judge: Hon. Stuart M. Bernstein

Chapter 15 Petitioner's Counsel: James C. McCarroll, Esq.
                                 Jordan W. Siev, Esq.
                                 Kurt F. Gwynne, Esq.
                                 REED SMITH, LLP
                                 599 Lexington Avenue
                                 New York, NY 10022
                                 Tel: (212) 521-5400
                                 Fax: (212) 521-5450
                                 E-mail: jmccarroll@reedsmith.com
                                         jsiev@reedsmith.com
                                         kgwynne@reedsmith.com

Estimated Assets: Not Indicated

Estimated Debt: Not Indicated


=================
V E N E Z U E L A
=================


VENEZUELA: Cuts Congress Out of Budgetary Process
--------------------------------------------------
Anatoly Kurmanaev at The Wall Street Journal reports that
Venezuela's Supreme Court has stripped the congress of budgetary
oversight, removing the last practical powers of the only public
institution opposed to President Nicolas Maduro amid the country's
deepening economic crisis.

The Supreme Court said in a ruling that it will take over all
budgetary functions from the National Assembly, because its
leaders, who oppose Mr. Maduro, stand in contempt of court for not
obeying earlier unrelated rulings, according to The Wall Street
Journal.

Mr. Maduro is expected in coming days to present next year's
spending plans for approval to the court, the first time a budget
won't be read to congress since 1861, according to Alfonso
Marquina, the head of the Assembly's finance committee, notes the
report.

"The supreme court is usurping our powers," the report quoted Mr.
Marquina as saying. "Even during dictatorships the budgets went to
congress."

The Supreme Court's ruling is the latest in a series of moves made
by Mr. Maduro and his judicial allies to chip away at
congressional powers since the opposition won control of the
National Assembly in December, delivering the biggest electoral
blow to the government in 17 years, the report relays.  Since
then, judges and policemen have suspended lawmakers without trial,
taken away congressional oversight over public officials and
thrown opposition leaders in jail on charges ranging from
terrorism to improper waste disposal, the report notes.

"Nothing like this assault on democratic powers happened in
Venezuela at least since the 1950s," said Javier Corrales,
professor of political science and Venezuela expert at Amherst
College in Massachusetts, the report notes.  "This decision by the
Supreme Court is further evidence of the hardening of Maduro's
dictatorial rule," Mr. Corrales added.

The opposition alliance has said it would now focus on staging a
constitutionally permitted recall referendum on Mr. Maduro, which
many political scientists see as the country's best chance to stop
the economic collapse and avoid a further slide into autocracy.
Venezuela's economy will contract 10% this year, with annual
inflation expected to rise to 1,600% in 2017, according to the
International Monetary Fund, the report relays.

The opposition held small rallies across the country to prepare
supporters for an upcoming signature drive required to trigger the
referendum, the report notes.   They would need to collect nearly
four million signatures over three days starting Oct. 26.

That will likely prove to be a Herculean task, given the
conditions imposed by Mr. Maduro's allies in the national
electoral council, notes the Journal. Only 5,400 polling booths
exist for 19 million voters, with stations particularly scarce in
the remote jungle and savanna states, the report says.

The opposition needs to get 20% of registered voters to the
stations in each of the 24 states to trigger the referendum, which
the electoral council said could happen around March if the
conditions are met, the report notes.

If the referendum is called, recent polls show Mr. Maduro would be
swept out of office in a landslide, the report discloses.  A vice
president of his choosing would then get to finish out his term
ending 2019, the report adds.

As reported in the Troubled Company Reporter-Latin America on
July 5, 2016, Fitch Ratings affirmed Venezuela's Long-Term
Foreign-and Local-Currency Issuer Default Ratings (LT FC/LC IDR)
at 'CCC'. Fitch has also affirmed the sovereign's Short-Term
Foreign Currency (ST FC) IDR at 'C' and country ceiling at 'CCC'.


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


LATAM: Economy to Contract 0.90 pct. in 2016, ECLAC Says
--------------------------------------------------------
EFE News reports that the U.N. Economic Commission for Latin
America and the Caribbean, or ECLAC, revised its forecast for
Latin America downward on Oct. 12, saying that the region's gross
domestic product (GDP) would contract 0.90 percent this year.

                            ***********


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

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

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


                            ***********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
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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