TCRLA_Public/161206.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, December 6, 2016, Vol. 17, No. 245


                            Headlines



A R G E N T I N A

ALLIANZ ARGENTINA: Moody's Affirms Ba3 IFS Ratings


B R A Z I L

BANCO BMG: Fitch Affirms 'BB-' Long Term Issuer Default Ratings
BANCO BONSUCESSO: Fitch Hikes LT Issuer Default Ratings to 'B+'
BANCO DO ESTADO: S&P Affirms 'BB-' ICR on Modest Business Position
BANCO ORIGINAL: Fitch Affirms 'B+' LT Issuer Default Ratings
BANCO PINE: Fitch Affirms 'BB-' Long Term Issuer Default Ratings

BRAZIL: Fitch Reviews Ratings of 9 Small and Midsized Banks
MASTELLONE HERMANOS: S&P Affirms Then Withdraws 'B-' Ratings
OI SA: Hints at Outright Debt-Stock Swap, Sources Say
OI SA: Dutch Administrators Seek Bankruptcy of Holland Units

* Thousands March Against 'Watered Down Anti-Corruption Bill'


C A Y M A N  I S L A N D S

ALPHABET OFFSHORE: Creditors' Proofs of Debt Due Dec. 22
AMINA LIMITED: Creditors' Proofs of Debt Due Dec. 21
BITE FINANCE: Commences Liquidation Proceedings
CALEDONIAN FUNDS: Creditors' Proofs of Debt Due Dec. 19
DYNAVEST: Creditors' Proofs of Debt Due Dec. 20

HEADCROWN1234: Creditors' Proofs of Debt Due Dec. 21
ROCKWOOD INTERNATIONAL: Creditors' Proofs of Debt Due Dec. 21
SEAST FUNDING: Creditors' Proofs of Debt Due Dec. 21
SEMF FUNDING: Creditors' Proofs of Debt Due Dec. 21
TRIANGULAR AMP: Commences Liquidation Proceedings

TRIANGULAR QCM: Commences Liquidation Proceedings
VEIO CAPITAL: Commences Liquidation Proceedings


C H I L E

SMU S.A.: Moody's Raises CFR & US$300MM Sr. Notes Rating to B3


D O M I N I C A N   R E P U B L I C

BANCO DE RESERVAS: Fitch Hikes Issuer Default Ratings to 'BB-'


G U Y A N A

* GUYANA: Gets US$9M IDB Loan to Support Economic Diversification


M E X I C O

ALESTRA S DE RL: S&P Affirms Then Withdraws 'BB' CCR
BIO PAPPEL: S&P Affirms Then Withdraws 'B' CCR


T R I N I D A D  &  T O B A G O

TRINIDAD CEMENT: CEMEX Makes Takeover Bid
TRINIDAD GUARDIAN: Sabga Dismisses Job Cut Rumors


U R U G U A Y

* URUGUAY: To Get $20MM-IDB Loan for New National Tourism Program


                            - - - - -


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A R G E N T I N A
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ALLIANZ ARGENTINA: Moody's Affirms Ba3 IFS Ratings
--------------------------------------------------
Agente de Calificacion de Riesgo, S.A. has affirmed the Insurance
Financial Strength (IFS) ratings on Allianz Argentina Compania de
Seguros S.A. at Ba3 on the global local currency scale and at
Aaa.ar on Argentina's national scale, with stable outlook.

                         RATINGS RATIONALE

According to Moody's, the ratings affirmation on Allianz Argentina
primarily reflects the strong capital contribution of $100 million
received in the first half of 2016, which more than offsets the
large net loss reported during last fiscal year ended on June 30,
2016.  This negative result was primarily driven by adjustments to
the company's case reserves subsequent to a turnover in
management.  Moody's analyst Alejandro Pavlov said: "with this
capital contribution, the company's gross underwriting leverage
improves significantly, thereby improving its capitalization
relative to peers".  Other key intrinsic credit strengths for
Allianz Argentina are its adequate franchise value, good market
position, and implicit and explicit support from its ultimate
parent company, Allianz SE (IFS Aa3, stable), through brand
sharing, parental oversight of its local operations, reinsurance
arrangements, and capital contributions.

Offsetting these positive considerations are the company's
historic trend of poor reserve adequacy --mitigated by our
expectation of better reserving practices and by the very strong
reserves strengthening applied during the last fiscal year-, the
weak asset quality on a global basis and by Argentina's weak
operating environment -the last two factors common to other local
peers-.  In addition, Moody's said that Allianz Argentina's
profitability is pressured by poor underwriting results, which
have worsened persistently over the last three fiscal years, and
that it will take time to improve the company's technical
profitability on a sustained basis.

Among the factors that could lead to an upgrade of the company's
ratings are the following: 1) a significant improvement in
Argentina's sovereign rating or insurance operating environment,
2) gross underwriting leverage consistently below 7x shareholders'
equity, 3) sustained solid profitability, with combined ratios
consistently below 98% and/or 4) improvement in Allianz
Argentina's reserve adequacy.  Conversely, the following factors
could lead to a downgrade of the company's ratings: 1) a downgrade
of Argentina's government bond rating and/or deterioration in
Argentina's insurance operating environment, 2) deterioration of
the company's profitability, 3) gross underwriting leverage
persistently above 11x shareholders' equity, and/or 4) significant
deterioration in asset quality (e.g. high risk assets in excess of
200% of equity).

Based in Buenos Aires, Argentina, Allianz Argentina reported net
profit above ARS 219 million and gross premiums of almost
ARS1.8 billion during the first quarter of 2016/17 fiscal year
ended Sept. 30, 2016.  As of that date, shareholders' equity was
ARS1.8 billion, and total assets were ARS6.7 billion.


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B R A Z I L
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BANCO BMG: Fitch Affirms 'BB-' Long Term Issuer Default Ratings
---------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) of Banco BMG S.A. (BMG) at
'BB-'/Outlook Negative.

KEY RATING DRIVERS

IDRS, VR AND NATIONAL RATINGS

The affirmation of BMG's Viability Rating (VR), IDRs and National
Ratings reflects Fitch's view on the expected improvement in
funding and capitalization resulting from the upcoming sale of
BMG's 40% share of its joint venture partnership (JV) with Itau
Unibanco in the payroll deductible lending business (Consignado).
As announced in late September of this year, Itau Unibanco, IDR
'BB+'/'AAA(bra)'), which owns the remaining 60%, will be paying
approximately BRL1.28 billion updated by CDI interest rate since
Dec. 31, 2015, to BMG upon the closing of the sale. The sale is
expected to take place before year-end, following regulatory
approval. The proceeds are expected to strengthen BMG's credit
metrics, mainly the regulatory capitalization ratios, while it
continues to grow its core business of credit card lending backed
by payroll deduction ('cartao de credito consignado'). Despite the
sale of all of its JV shareholdings to Itau Unibanco, the two
banks will continue to maintain an association via a 10-year
agreement for the distribution of the JV's payroll-backed loans on
an exclusive basis through the distribution channels linked to
BMG.

The ratings also consider BMG's challenge to maintain its asset
quality in the continued challenging macroeconomic scenario that
will limit operational profitability. BMG had been operating with
a more comfortable liquidity position since transferring most of
its consignado loan portfolio to the JV over the past two years
and since deciding to stop growing and then exit its vehicle
finance business. Using its excess liquidity, the bank has reduced
the amount of its more expensive liabilities including prepaying a
portion of its subordinated bonds due in 2019 and 2020 at a
discount. The bank had also diversified its funding, increasing
the amount of stable deposits rather than depending on asset sales
and overseas funding.

While BMG will no longer be able to benefit from its soon to be
sold 40% equity in earnings in the JV, it will be able to use the
proceeds to support the growth of its core business segments,
which have already seen their exposure grow by slightly more than
175% during the last 12 months. Fitch believes management will
conservatively manage the expansion of its payroll deductible
credit card segment, in which BMG has considerable expertise and a
60% market share. Management is cognizant that increased
competition in the segment will impact its share but it also
comfortable that there is sufficient demand - especially with the
expected improvement in the economy (Fitch forecasts that Brazil's
GDP will grow by 1.2% in 2017 and even more in 2018 - following
negative growth in 2016). Even if the recovery is delayed, the
weak operating environment is expected to have a lower impact on
this product than it has on its other credit products such as pre-
owned vehicle financing and commercial lending. The bank's 'cartao
de credito consignado' portfolio balance has already reached
BRL4.9 billion at Sept. 30, 2016.

To support such growth, the bank had recently enhanced its risk
management team and has maintained sophisticated systems for risk
mitigation. In view of the still weak operating environment, the
credit approval process is expected to remain cautiously selective
as to new credit disbursements in its core segments.

The bank continues to amortize the goodwill expense from past
purchases of other banks and this amount is now reduced to
approximately BRL700 million. BMG continues to carefully monitor
its cost controls; however, profitability was impacted by high
expenses resulting from the positioning of its Payroll Credit Card
business and the need for provisioning in its commercial credit
portfolio which offset the still-low revenues from its remaining
core business. BMG was able to report positive earnings during the
third quarter 2016 as a result of a non-recurring fee from Grupo
Generali in the amount of Euro45 million (about BRL164 million) in
exchange for an exclusive right to distribute Grupo Generali's
insurance products through BMG's business channels over the next
20 years.

The Negative Outlook on the IDR was maintained as it reflects
Fitch's view that many of the key credit metrics of this mid-sized
wholesale bank are highly influenced by the operating environment
and could see further pressure considering our expectations for
continued weakness in the domestic operating environment, as
evidenced by the still negative outlook assigned by Fitch to the
Brazilian banking sector.

SUPPORT RATING AND SUPPORT RATING FLOOR

BMG's Support Rating and Support Rating Floor are based on Fitch's
view that BMG is not considered to be a domestically important
financial institution, due to the size of its deposit and loan
market share. As such it is unlikely to receive external support
from the Brazilian sovereign.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

BMG's subordinated debt is rated three notches below its VR to
reflect its subordinated status. It has thus been affirmed due to
the affirmation of the bank's VR.

RATING SENSITIVITIES

IDRS, VR and NATIONAL RATINGS

BMG's ratings could be downgraded in case of further sustained
deterioration in its asset quality (non-performing loans over 90
days remaining above 3%) and weak performance (such as a continued
negative operating profit-to-risk-weighted assets, and/or a
deterioration in capitalization (Fitch Core Capital [FCC] falling
below 12%).

A revision in the Outlook to Stable is unlikely in the short- and
medium-term as it is contingent on significant improvements in
operational profitability and a sustained improvement in the
impaired loan ratio (D-H) to below 6% of total loans while BMG's
FCC remains above 13%. An operating profit-to-risk-weighted assets
ratio above 2% would trigger a positive rating review by Fitch. ]

SENIOR UNSECURED AND SUBORDINATED DEBT ]

Senior and subordinated debt ratings would generally move together
with the bank's Long-Term IDR. The subordinated debt will remain
three notches below the bank's IDR.

Fitch has affirmed the following ratings:

Banco BMG:

   -- Long-Term Foreign Currency IDR at 'BB-'; Outlook Negative;

   -- Short-Term Foreign Currency IDR at 'B';

   -- Long-Term Local Currency IDR at 'BB-'; Outlook Negative;

   -- Short-Term Local Currency IDR at 'B';

   -- Viability Rating at 'bb-';

   -- Support Rating at '5';

   -- Support Rating Floor 'No Floor';

   -- National long-term rating at 'A(bra)'; Outlook Negative;

   -- National short-term rating at 'F2(bra)';

   -- Subordinated notes due 2019 & 2020

   -- Long-term foreign currency rating at 'B-';


BANCO BONSUCESSO: Fitch Hikes LT Issuer Default Ratings to 'B+'
----------------------------------------------------------------
Fitch Ratings has taken the following rating actions on Banco
Bonsucesso S.A. (Bonsucesso):

   -- Long-Term Foreign and Local Currency Issuer Default Ratings
      (IDRs) upgraded to 'B+' from 'B'; Outlook Stable;

   -- Short-Term Foreign and Local Currency IDRs affirmed at 'B';

   -- Viability Rating upgraded to 'b+' from 'b';

   -- National Rating Long-Term Rating upgraded to 'BBB(bra)' from
      'BBB-(bra)'; Outlook Stable;

   -- National Short-Term Rating affirmed at 'F3(bra)';

   -- Support Rating affirmed at '5';

   -- Support Rating Floor affirmed at 'NF'.

Bonsucesso's IDRs are driven by its VR.

KEY RATING DRIVERS - VR, IDRs AND NATIONAL SCALE RATINGS

The upgrade of Bonsucesso's IDRs and National Ratings reflects
Fitch's belief that the bank will preserve its currently solid
capital and liquidity position, while it continues to benefit from
its strategic plan, gradually leading to better recurring
profitability in the mid term. Bonsucesso is changing its business
model to an asset light and less capital consuming structure,
which will support the bank's loss absorption capacity. This has
also enabled the bank to reduce its funding costs, which have
eased profitability pressures. Bonsucesso is concentrating its
efforts to become a service-oriented bank, while the growth of its
lending operations will depend on the economic scenario.

The conclusion of the transfer of Bonsucesso's payroll deductible
loan portfolio and the operational structure related to this
portfolio in 2015 to its joint-venture (JV) with Banco Santander
Brasil S.A. (Santander: Long-Term Local Currency IDR 'BBB-
'/Outlook Negative) eased the pressures on the bank's funding,
liquidity and cost base, and led to a significant improvement in
the bank's capital adequacy ratios. This has paved the way for the
exploration of new products, which, in Fitch's opinion, will
support the key credit metrics of the bank. However, until
Bonsucesso fully implements its new strategic plan, income from
its JV with Santander, which it accounts via equity-income, is
expected to remain its main source of earnings.

Bonsucesso strengthened its foreign exchange department by hiring
well-known executives with long track records in the segment, and
announced a partnership with Adyen, a global payment company,
which will allow it to enter merchant acquiring operations.
Results from recent investments should become a key contributor to
overall earnings.

In the first-half 2016, the bank posted net income of BRL28
million, compared with BRL133 million in 2015 (operating
profit/risk weighted assets were 5.54% and 6.40%, respectively).
The bulk of the earnings in both periods were non-recurring
related to the creation of the JV and credit sales made to the JV.
Meanwhile, credit costs have remained low in 2015 and first half
of 2016, following a number of challenging years when Bonsucesso
had to constitute significant loan loss reserves in its small and
midsize company loan portfolio, as it was one of banks that was
severely affected by the credit problems arising from the very
weak operating environment in the recent years. However, the
proportion of impaired loans to gross loans rose to 18.69% at June
2016 (16.76% in 2015 and 10.06% in 2014), as gross loans fell
significantly with the sale of payroll deductible loans and loans
to small and medium-sized companies, which are of much higher
risk, now make up the bulk of the loan portfolio.

Profitability should also continue to benefit from the bank's
improved funding profile. Bonsucesso now has a reduced reliance on
expensive funding sources, such as DPGE I and II, which decreased
from 40% of total deposits in June 2015 to 23% in June 2016.
Overall, the bank remains selective on new funding operations,
because there is no expectation to grow its balance sheet in the
short term.

Capitalization is solid, with a Fitch Core Capital (FCC) ratio of
23.12% as of June 2016 (19.84% in 2015 and 13.02% in 2014), and
should remain comfortable since loan growth will remain modest
until there is more visibility on the operating environment, and
the bank's new products are generally not capital consuming.

KEY RATING DRIVERS - SUPPORT RATING AND SUPPORT RATING FLOOR

Bonsucesso's Support Rating and Support Rating Floor are affirmed
at '5' and 'NF', respectively, in view of the bank's low systemic
importance. In Fitch's view, external support cannot be relied
upon.

RATING SENSITIVITIES

IDRs, VR AND NATIONAL RATINGS

Bonsucesso's ratings could be upgraded over the medium term, if
the bank manages to post adequate and recurring profitability
characterized by an operating profit/risk weighted assets ratio
above 1.5%. An upgrade will also depend on the bank's ability to
post improved asset-quality ratios and maintain its current robust
capital profile. Any further positive rating action is heavily
contingent as well on a material improvement of the economic
environment.

Conversely, Bonsucesso's ratings could be downgraded if the
transition is unsuccessful and/or the bank cannot consolidate its
existing operations, or if the FCC ratio falls below 15%, or if
there is major deterioration in credit quality.

SUPPORT RATING AND SUPPORT RATING FLOOR

A potential upgrade of Bonsucesso's Support Rating and Support
Rating Floor is unlikely in the foreseeable future, since this
would only arise from a material gain in systemic importance.



BANCO DO ESTADO: S&P Affirms 'BB-' ICR on Modest Business Position
------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB-' long-term global scale and
'brA-' national scale issuer credit ratings on Banco do Estado do
Rio Grande do Sul (Banrisul), a Brazil-based, government-owned
commercial bank.  The outlook on both scales remains negative.

The ratings on Banrisul continue to reflect its moderate business
position given the higher risk of operating in the state of Rio
Grande do Sul, given that the latter's prolonged weak finances are
weighing on bank's revenue stability.  The ratings also take into
account Banrisul's moderate capital and earnings--due to a
projected risk-adjusted capital (RAC) ratio of 5.7%-- moderate
risk position--given its weakening asset quality metrics-and
above-average funding and adequate liquidity.

On Nov. 22, 2016, the state of Rio Grande do Sul declared a state
of financial emergency.  Nevertheless, S&P believes that the
Fiscal Responsibility Law, banking regulations, and Banrisul's
corporate governance provide protection to the bank against the
state's possible intervention.  In this sense, the ongoing impact
of the weak credit conditions in the state is already incorporated
in S&P's ratings, and S&P still considers the state's ability to
intervene in the bank's operations as limited.

In S&P's view, the package of fiscal measures that the state
government recently announced doesn't include any measure that
could jeopardize bank's operations.


BANCO ORIGINAL: Fitch Affirms 'B+' LT Issuer Default Ratings
------------------------------------------------------------
Fitch Ratings affirmed the following Banco Original S.A.
(Original) ratings:

   -- Long-Term Foreign and Local Currency Issuer Default Ratings
      (IDRs) at B+;

   -- Short-Term Foreign and Local Currency IDRs at 'B';

   -- Viability Rating at b+;

   -- National Long-Term Rating at BBB+(bra).

   -- National Short-Term Rating at 'F2(bra)';

   -- Support Rating at '5';

   -- Support Rating Floor at 'NF'.

The Rating Outlook remains Stable. Original's IDRs are driven by
its VR.

KEY RATING DRIVERS - IDRs, VR, NATIONAL RATINGS

The affirmation of Original's IDRs and National Ratings reflects
the bank's still modest profitability, and the need to further
consolidate its recently launched retail banking project in order
to achieve adequate and recurring profitability. Original's
ratings also take into account its whole-sale based funding
profile. However, conservative asset and liability management and
solid liquidity considerably mitigate potential risks arising from
the concentrated nature of its funding base.

Conversely, Fitch recognizes that the national ratings could
benefit in the short-term from Original's successful steps towards
the consolidation of a more competitive franchise in the corporate
and agribusiness segment. Fitch also expects that this will lead
to incrementally improving results going forward, while
maintaining adequate underwriting standards, capitalization and
liquidity. Over the past three years, after the launch of a full
revision of its organizational structure, Original has managed to
strengthen its customer base, which has placed its corporate
franchise in a better and more comparable position to other
midsize banks with longer-track records in the market.

Original's total assets reached BRL7.4 billion as of June 2016, up
from BRL3.0 billion at the end of 2013. During this period, the
bank managed to strengthen its competitive position as a niche
player, while most of its competitors have been forced to adopt a
more defensive approach due the economic crisis and reduce their
size and scope in order to protect their franchises.

Profitability, on the other hand, remains one of the bank's main
weaknesses, and is lower than 'BB' category rated-banks. This
reflects not only Original's high capital adequacy ratios and its
need to further mature its overall franchise, but also its
significant investments in the digital banking segment, which has
yet to bear fruit. This in turn, may prove challenging under the
current economic scenario and fierce competitive landscape. As of
June 2016, the bank's operating profit to risk weighted assets
decreased to 0.05% from 1.14% in December 2015. Fitch expects
profitability to remain relatively modest in the short term,
although it should start to improve gradually from 2017 onwards,
when the bulk of the major expenses related to the retail segment
will already have been incurred and provisioning expenses and
funding costs should decline.

Meanwhile, Fitch expects the bank to maintain its above average
capitalization ratios and preserve a prudent liquidity position.
Capitalization is comfortable, and in spite of the bank's
aggressive growth plans, management has stated it aims to keep
regulatory capital in excess of 16%. The bank's Fitch Core Capital
(FCC) ratio of 23.04% at June 2016 dropped significantly from
41.72% at December 2014, as a result of rapid loan growth. Fitch
believes that capitalization will remain adequate to support the
bank's medium-term goals, despite modest profitability and until
the bank's business plans are fully implemented and mature.

SR and SRF

Original's Support Rating and Support Rating Floor were affirmed
at '5' and 'NF', respectively, in view of the bank's low systemic
importance. In Fitch's view, external support cannot be relied
upon.

RATING SENSITIVITIES

IDRs, VR AND NATIONAL RATINGS

Original's IDRs would benefit from a sustained improvement in its
recurring operating profitability, diversification of its funding
base, and the maintenance of its FCC ratio above 15%. The ratings
could also be positively affected in the near term if the positive
trend of the implementation of the bank's business plan (including
achieving a longer and positive track-record in its nascent
digital banking segment) continues and results in a further
consolidation of the bank's franchise, while the currently robust
capital and liquidity profile and adequate asset-quality is
maintained.

In turn, if performance deteriorates and remains very weak for a
sustained period, or in case of a deterioration of the quality of
its corporate or agribusiness loan portfolio, Original's IDRs
could be downgraded. A deterioration of the FCC ratio to below 15%
or a longer than expected implementation of the business plan and
modest sustained performance could all trigger a rating downgrade.

SR and SRF

A potential upgrade of Original's Support Rating and Support
Rating Floor is unlikely in the foreseeable future, since this
would arise from a material gain in systemic importance.


BANCO PINE: Fitch Affirms 'BB-' Long Term Issuer Default Ratings
----------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term (LT) Foreign and Local
Currency Issuer Default Ratings (IDRs) of Banco Pine S.A. (Pine)
at 'BB-'/Outlook Negative. At the same time the LT National rating
was downgraded by one notch to 'A(bra)'.

KEY RATING DRIVERS

VR, IDRs

Pine's Viability Rating (VR) and IDR were affirmed based on the
bank's improved capitalization and satisfactory liquidity and
funding position that were enhanced by the bank's continued low
risk appetite. These ratings also take into account the impacts of
the weak operating environment and also recognize management's
conservative lending strategy which contributed to a satisfactory
level of liquidity and a comfortable Fitch Core Capital ratio
(FCC) of 14.3% which compares favorably to its peers and to the
bank's own FCC ratios of the previous four fiscal year-ends.

The weak operating environment and certain non-performing credit
exposures contributed to the growth in the level of loan
impairments. In response to such challenges, Pine had opted for a
strategy of credit contraction which, in turn, limited its
capacity to generate revenues. As of Sept. 30, 2016, the bank's
impaired loans (D-H loans per BACEN Res. 2682) have risen to 15.1%
from 9.3% at YE2015. In addition, the bank reported a BRL5.2
million loss for the first nine months of 2016.

"The Negative Outlook on the IDR was maintained, as it reflects
Fitch's view that many of this mid-sized wholesale bank's key
credit metrics are highly influenced by the operating environment
and could see further pressure considering our expectations for
continued weakness in the operating environment, as evidenced by
the still negative outlook assigned by Fitch to the Brazilian
banking sector." Fitch said.

Pine's relatively large asset concentration - especially of
corporate names in the loan portfolio - resulted in asset-quality
pressure due mainly to the impact of the decelerating economy. The
bank's impaired loans (BACEN D-H)-to-total loans saw a material
deterioration during the past two years having risen from only 5%
at YE2014. Other causes of the deterioration included loans to
certain borrowers named in the Lava Jato scandal, which also
impacted some of Pine's peers, and along with the effect on the
ratio of the nearly 35% decrease in credit exposure over the last
21 months. A positive note on asset quality comes from the
relatively stable over-90-day non-performing-loan-to-total loan
ratio (BACEN E-H) of 1.5% at Sept. 30, 2016, although this low
ratio benefitted from a higher level of charge-offs.

Fitch notes that the repositioning of its lending activities
towards lower-risk segments should reduce the bank's credit costs
in the medium term. During the first nine months of 2016, the
bank's loan loss provision expense reached BRL77 million. For the
next six months, as the economy improves (Fitch expects minimal
growth of 1.2% in GDP for 2017 and a higher rate in 2018),
management expects a declining trend in the impaired loan ratio
aided by some net recoveries. In addition a conservative increase
in exposure and preference for higher-quality borrowers will
likely enhance not only asset quality, but revenues as well. To
offset the still tight margins, management focused on cost
reduction which has already seen some success, as the bank
reported an 8% decrease in personnel and administrative expenses
during the last 12 months. Fitch expects Pine to maintain low
profitability levels during 2017, but net losses are not part of
our base case scenario.

During the last 12 months, the composition of the 20 largest
clients in the total credit portfolio was altered by over 25% and
the new names were mostly classified in the better-rated 'A' and
'B' categories. The exposure to these top-20 clients represents
slightly over 30% of the expanded credit portfolio; however, over
50% of the exposure is in the form of guarantees. These guarantees
generally enhance asset quality given the quality of the companies
that request them and as they are infrequently realized due to
their nature. Fitch also notes that despite the improved credit
quality resulting from tighter underwriting policies and guarantee
structuring, Pine's credit portfolio will continue to be tested
under the current scenario of economic deceleration.

During past few years, Pine's management increased its focus on
cost controls and recently restructured its management team in
order to increase efficiencies and position the bank for renewed
credit portfolio expansion in 2017. At the same time the bank also
focused on lowering its funding costs in order to offset lower
margins from earned from lower risk borrowers. The reduction in
risk-weighted assets has contributed to the strengthening of the
bank's FCC.

Prudent asset and liability management and the excess of liquidity
in Brazil and overseas in the last three years enabled Pine to
diversify alternative funding options, such as bilateral credit
lines from local and foreign banks, multilateral funding, and the
transfer of development funds from BNDES. In spite of this, Pine's
funding base continues have some concentration, as time deposits
from high net-worth individuals account for 44% of the total non-
equity funding as of September 2016. In Pine's favor, the bank has
been using its excess liquidity to repay a relevant portion of its
more expensive funding. The bank just repaid an AB loan of BRL242
million in November and is scheduled to repay Pine17 in early
January 2017. As a result, the average cost of Pine's liabilities
has been diminishing. Despite some concentration, the bank's
current funding base looks to be satisfactory compared to the
duration of its loan portfolio and good liquidity levels, a
situation that should prevail with Pine's strategy of controlled
loan growth.

NATIONAL RATINGS

The downgrade of the National Ratings reflects the growth in the
level of loan impairments and the continued weak profitability.
Although these factors did not impact the IDR, they were deemed
relevant enough to impact the National Ratings as the National
Scale Credit Ratings are an assessment of credit quality relative
to the rating of the lowest credit risk in a country. National
Ratings are not intended to be internationally comparable. The
Negative Outlook on the rating was maintained as it reflects
Fitch's view that many of the key credit metrics of this mid-sized
wholesale bank are highly influenced by the current operating
environment.

SUPPORT RATING (SR) AND SUPPORT RATING FLOOR (SRF)

Pine's SR and SRF are based on Fitch's view that Pine is not
considered to be a domestically important financial institution
due to the size of its deposit and loan market share. As such it
is unlikely to receive external support from the Brazilian
sovereign.

SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

Pine's subordinated debt is rated two notches below its VR to
reflect its subordinate status. It has thus been affirmed due to
the affirmation of the bank's VR. The ratings of Pine's Chilean
Huaso Bond Program and Issuance were also affirmed.

RATING SENSITIVITIES

IDRs, VR and NATIONAL RATING

Pine's ratings could be downgraded in case of further sustained
deterioration in its performance (such as a continued negative
operating profit-to-risk-weighted assets, weak asset quality (non-
performing loans over 90 days above 3%) and/or capitalization (FCC
falling below 13%). A revision in the Outlook to Stable is
unlikely in the short- and medium-term as it is contingent on
significant improvements in operational profitability and a
sustained improvement in the impaired loan ratio.

SENIOR UNSECURED AND SUBORDINATED DEBT

Senior and subordinated debt ratings would generally move together
with the bank's Long-Term IDR. The subordinated debt will remain
two notches below the bank's IDR.

The rating actions are as follows:

   Banco Pine S.A.

   -- Long-Term Foreign and Local Currency IDRs affirmed at 'BB-';
      Outlook Negative;

   -- Short-Term Foreign and Local Currency IDRs affirmed at 'B';

   -- Viability Rating affirmed at 'bb-';

   -- Support Rating affirmed at '5';

   -- Support Rating Floor affirmed at 'NF';

   -- Subordinated Debt USD Notes due Jan. 6, 2017 affirmed at
      'B';

   -- Huaso Bonds Program expiring in 2022 affirmed at 'BBB+(cl)';
      Outlook Negative;

   -- Huaso Bonds due Dec. 10, 2017 affirmed at 'BBB+(cl)'.
      Outlook Negative;

   -- Long-Term National rating downgraded to 'A(bra)' from at
      'A+(bra)'; Outlook Negative;

   -- Short-Term National rating downgraded to 'F1(bra' from
      'F1+(bra)'.


BRAZIL: Fitch Reviews Ratings of 9 Small and Midsized Banks
-----------------------------------------------------------
Fitch Ratings has reviewed the ratings of nine Brazilian small and
midsized banks and has taken the following actions:

Ratings Affirmed

   -- Banco BMG S.A. (BMG)

   -- Banco Fator S.A. (Fator)

   -- Banco Intermedium S.A. (Intermedium)

   -- Banco Sofisa S.A. (Sofisa)

   -- Banco Original S.A. (Original)

National Rating Upgraded; Outlook Stable

   -- Banco Rendimento S.A. (Rendimento)

   -- BR Partners Banco de Investimento S.A. (BR Partners)

IDRs and National Rating Upgraded; Outlook Stable

   -- Banco Bonsucesso S.A. (Bonsucesso)

IDRs affirmed, National Ratings Downgraded; Outlook Negative

   -- Banco Pine S.A. (Pine)

Fitch has taken the following rating actions:

   BMG

   -- Long-Term Foreign and Local Currency Issuer Default Ratings
      (IDRs) affirmed at 'BB-', Outlook Negative;

   -- Short-Term Foreign and Local Currency IDRs affirmed at 'B';

   -- Viability Rating affirmed at 'bb-';

   -- Long-term national rating affirmed at 'A(bra)', Outlook
      Negative;

   -- Short-term national rating affirmed at 'F2(bra)';

   -- Support rating affirmed at '5'.

   Bonsucesso

   -- Long-Term Foreign and Local Currency IDRs upgraded to 'B+'
      from 'B', Outlook Stable;

   -- Short-Term Foreign and Local Currency IDRs at 'B';

   -- Viability Rating upgraded to 'b+' from 'b';

   -- Long-term National Rating upgraded to 'BBB(bra)' from 'BBB-
      (bra)', Outlook Stable;

   -- Short-term National Rating affirmed at 'F3(bra)';

   -- Support Rating affirmed at '5';

   -- Support Rating Floor affirmed at 'NF'.

   Fator

   -- Long-term national rating affirmed at 'BBB-(bra)', Outlook
      Negative;

   -- Short-term national rating affirmed at 'F3(bra)';

   Banco Pine S.A.

   -- Long-Term Foreign and Local Currency IDRs affirmed at 'BB-';
      Outlook Negative;

   -- Short-Term Foreign and Local Currency IDRs affirmed at 'B';

   -- Long-term national rating downgraded to 'A(bra)' from
      'A+(bra)', Outlook Negative;

   -- Short-term national rating downgraded to 'F1(bra)' from
      'F1+(bra)';

   -- Viability Rating affirmed at 'bb-';

   -- Support Rating affirmed at '5';

   -- Support Rating Floor affirmed at 'NF';

   -- Subordinated debt USD notes due Jan. 6, 2017 affirmed at
      'B';

   -- Huaso Bonds Program expiring in 2022 affirmed at 'BBB+(cl)';

   -- Huaso Bonds due Dec. 10, 2017 affirmed at 'BBB+(cl)'.

   Intermedium

   -- Long-term national rating affirmed at 'BBB(bra)', Outlook
      Stable;

   -- Short-term national rating affirmed at 'F3(bra)'.

   Original

   -- Long-term foreign and local currency IDRs affirmed at 'B+',
      Outlook Stable;

   -- Short-term foreign and local currency IDRs affirmed at 'B';

   -- Viability rating affirmed at 'b+';

   -- Long-term national rating affirmed at 'BBB+(bra)', Outlook
      Stable;

   -- Short-term national rating affirmed at 'F2(bra)';

   -- Support rating affirmed at '5'.

   Rendimento

   -- Long-term national rating upgraded to 'A-(bra)' from
      'BBB+(bra)', Outlook Stable;

   -- Short-term national rating affirmed at 'F2(bra)';

   Sofisa

   -- Long-term national rating affirmed at 'A-(bra)', Outlook
      Stable;

   -- Short-term national rating affirmed at 'F2(bra)';

   BR Partners

   -- Long-term national rating upgraded to 'BBB+(bra)' from 'BBB
      (bra)', Outlook Stable;

   -- Short-term national rating upgraded to 'F2(bra)' from
      'F3(bra)'.


MASTELLONE HERMANOS: S&P Affirms Then Withdraws 'B-' Ratings
------------------------------------------------------------
S&P Global Ratings affirmed its 'B-' corporate and issue-level
ratings on Mastellone Hermanos S.A.  The ratings remain capped at
the level of the sovereign rating on Argentina due to Mastellone's
high exposure to that country.

S&P then withdrew the ratings at the request of the issuer.  At
the time of the withdrawal, the outlook was stable.


OI SA: Hints at Outright Debt-Stock Swap, Sources Say
-----------------------------------------------------
Guillermo Parra-Bernal and Tatiana Bautzer at Reuters report that
Oi SA could scrap a proposed three-year restriction on creditors
swapping part of their debt for equity, in a sign that Brazil's
No. 4 wireless carrier wants to lure bondholder support to exit
bankruptcy protection faster, two people with knowledge of the
matter said.

The limit, which Oi included in a reorganization proposal on Sept.
5, drew creditor anger and helped slow the carrier's in-court
restructuring, according to Reuters.  Chief Executive Officer
Marco Schroeder told Oi's two bondholder groups that shareholders
now seem less reluctant to accept a debt-for-equity swap, the
people said, the report notes.

According to the sources, Schroeder met with Sao Paulo-based G5
Evercore, the advisor to a recently created bondholder group, to
discuss the restructuring. He met bankers at a Moelis & Co-led
creditor group, said the people, who spoke on condition of
anonymity, Reuters relays.

That change in strategy would underscore how mounting government
pressure to find a solution for Oi has forced creditors and
shareholders to rapidly find common ground, the report notes.
Schroeder became Oi's CEO after a first round of talks with the
Moelis-led group collapsed in June, the report says.

Oi's BRL65.4 billion ($19 billion) bankruptcy protection case,
Brazil's biggest ever, has been complicated by September's
reorganization proposal, which creditors alleged favors
shareholders at their expense, the report notes.  The government
may intervene if the rift persists, the report says.

Reuters reported on Sept. 2 that the government would only act if
"disruptive investors" sought to take control of Oi during the in-
court reorganization plan, the report recalls.

The Moelis-led group is working with Egyptian billionaire Naguib
Sawiris to present an alternative reorganization plan for Oi,
drawing opposition from some government officials, the report
notes.

A resolution of the conflict between bondholders and shareholders
could draw more interested parties to Oi, which filed for creditor
protection after succumbing to years of excessive borrowing and
Brazil's harshest recession in eight decades, the report relays.

A third source said that a group of investors led by U.S.
distressed debt fund Cerberus Capital Management LP is considering
examining Oi's books to decide whether to place a bid during the
reorganization talks, the report discloses.

The same person said the Cerberus-led plan had already garnered
support from government officials and banks, the report adds.  New
York-based Cerberus did not have an immediate comment.

                            About Oi SA

Headquartered in Rio de Janeiro, and operating almost exclusively
within Brazil, the Oi Group provides services like fixed-line
data transmission and network usage for phones, internet, and
cable, Wi-Fi hot-spots in public areas, and mobile phone and data
services, and employs approximately 142,000 direct and indirect
employees.

Ojas N. Shah filed a Chapter 15 petition for Oi S.A. (Bankr.
S.D.N.Y. Case No. 16-11791), Oi Movel S.A. (Bankr. S.D.N.Y. Case
No. 16-11792), Telemar Norte Leste S.A. (Bankr. S.D.N.Y. Case No.
16-11793), and Oi Brasil Holdings Cooperatief U.A. (Bankr.
S.D.N.Y. Case No. 16-11794) on June 21, 2016.  The case is
assigned to Judge Sean H. Lane.

The Chapter 15 Petitioner is represented by John K. Cunningham,
Esq., and Mark P. Franke, Esq., at White & Case LLP, in New York;
and Jason N. Zakia, Esq., Richard S. Kebrdle, Esq., and Laura L.
Femino, Esq., at White & Case LLP, in Miami, Florida.


OI SA: Dutch Administrators Seek Bankruptcy of Holland Units
------------------------------------------------------------
Giulia Camillo at Bloomberg News reports that Dutch administrators
filed requests with the local court to convert the suspensions of
payments by Oi Brasil Holdings and Portugal Telecom International
to bankruptcy processes.

The court set a hearing on the matter for Jan. 12, 2017, Bloomberg
discloses.

Oi reaffirms that the conversion would be restricted to Holland
and expects the request won't have significant impact in its
bankruptcy protection process or in its cash position, Bloomberg
relates.

The company will make all necessary efforts to protect the group's
and its stakeholders interest, Bloomberg states.

Ojas N. Shah filed a Chapter 15 petition for Oi S.A. (Bankr.
S.D.N.Y. Case No. 16-11791), Oi Movel S.A. (Bankr. S.D.N.Y. Case
No. 16-11792), Telemar Norte Leste S.A. (Bankr. S.D.N.Y. Case No.
16-11793), and Oi Brasil Holdings Cooperatief U.A. (Bankr.
S.D.N.Y. Case No. 16-11794) on June 21, 2016.  The case is
assigned to Judge Sean H. Lane.

The Chapter 15 Petitioner is represented by John K. Cunningham,
Esq., and Mark P. Franke, Esq., at White & Case LLP, in New York;
and Jason N. Zakia, Esq., Richard S. Kebrdle, Esq., and Laura L.
Femino, Esq., at White & Case LLP, in Miami, Florida.


* Thousands March Against 'Watered Down Anti-Corruption Bill'
-------------------------------------------------------------
BBC News reports that tens of thousands of Brazilians have joined
street protests against a vote which they say threatens to
undermine a major anti-corruption investigation.

The biggest marches have taken place in Sao Paulo's business
district and along Rio de Janeiro's Copacabana beach, according to
BBC News.

Demonstrators were angry after the lower house of passed a number
of amendments to a landmark anti-corruption bill, the report
relays.

Organizers say politicians have tried to intimidate the
investigators, the report relays.

Politicians, who are themselves being investigated, watered down
the proposal, protesters said, the report notes.

Controversially, they included in the bill the prospect of harsh
punishment for judges and prosecutors who abuse their powers, the
report relays.  The bill still needs to be approved by the Senate
before it becomes law, says the report.

                        'Peaceful and Orderly'

At Sunday's demonstrations in major cities across Brazil, many
were carrying signs supporting prosecutor Sergio Moro and the team
leading the investigation, known as Operation Car Wash, the report
relays.

Dressed mostly in the green and yellow colors of the national
flag, demonstrators have marched in the capital, Brasilia, and
more than 20 Brazilian states, the report notes.

President Michel Temer praised the demonstrations, which took
place "in a peaceful and orderly manner," the report says.

"The powers of the republic must always remain aware of the
demands of the Brazilian population," he said in an official
statement, the report relays.

Since it was launched in 2014, Operation Car Wash has unveiled a
huge corruption scheme at the state oil company, Petrobras, the
report relays.

                        Partisan and Selective

Prosecutors say private companies, including some of Brazil's
biggest construction firms, agreed to pay bribes to politicians,
civil servants and Petrobras executives to secure lucrative
contracts with the oil company, the report notes.

Investigators found out that most contracts were overpriced, to
account for the bribes the companies agreed to pay, the report
says.

The kickback scheme cost Petrobras an estimated $1.8 billion
(GBP1.4bn), said company boss Pedro Parente last month, the report
relays.

Most of the dozens of people investigated and charged in
connection with the scandal were from the governing coalition led
by the Workers Party of former presidents Luiz Inacio Lula da
Silva and Dilma Rousseff, the report relays.

Party supporters accuse Mr. Moro and the other prosecutors in the
investigation of being partisan and selective in their work,
focusing unfairly on their members, the report discloses.
Former President Rousseff was dismissed in September after an
impeachment process in Congress for illegally manipulating the
budget to hide a growing deficit, recounts the report.

As reported in the Troubled Company Reporter-Latin America on
Nov. 15, 2016, Fitch Ratings has affirmed Brazil's Long-Term
Foreign and Local Currency Issuer Default Ratings (IDRs) at 'BB'/
Negative Outlook.  Brazil's senior unsecured Foreign- and Local-
Currency bonds are also affirmed at 'BB'. The Country Ceiling is
affirmed at 'BB+' and the Short-Term Foreign and Local-Currency
IDRs at 'B'.



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


ALPHABET OFFSHORE: Creditors' Proofs of Debt Due Dec. 22
--------------------------------------------------------
The creditors of Alphabet Offshore, Ltd. are required to file
their proofs of debt by Dec. 22, 2016, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Nov. 8, 2016.

The company's liquidator is:

          DMS Corporate Services Ltd.
          c/o Norman Chan
          P.O. Box 1344 dms House
          20 Genesis Close, George Town KY1-1108
          Cayman Islands
          Telephone: (345) 946 7665
          Facsimile: (345) 949 2877


AMINA LIMITED: Creditors' Proofs of Debt Due Dec. 21
----------------------------------------------------
The creditors of Amina Limited are required to file their proofs
of debt by Dec. 21, 2016, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on Oct. 30, 2016.

The company's liquidator is:

          Zedra Directors (Cayman) Limited
          FirstCaribbean House, 4th Floor
          P.O. Box 487 Grand Cayman KY1-1106
          Cayman Islands
          Telephone: 345 949-7128


BITE FINANCE: Commences Liquidation Proceedings
-----------------------------------------------
On Oct. 31, 2016, the sole shareholder of Bite Finance
International (Cayman) Ltd. resolved to voluntarily liquidate the
company's business.

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

The company's liquidator is:

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


CALEDONIAN FUNDS: Creditors' Proofs of Debt Due Dec. 19
-------------------------------------------------------
The creditors of Caledonian Funds, SPC are required to file their
proofs of debt by Dec. 19, 2016, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on Nov. 8, 2016.

The company's liquidator is:

          Claire Loebell
          c/o Deri Hill
          Ernst & Young Ltd
          62 Forum Lane, Camana Bay
          P.O. Box 510 Grand Cayman KY1-1106
          Cayman Islands
          Telephone: (345) 814 8958


DYNAVEST: Creditors' Proofs of Debt Due Dec. 20
-----------------------------------------------
The creditors of Dynavest are required to file their proofs of
debt by Dec. 20, 2016, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on Nov. 8, 2016.

The company's liquidator is:

          Jane Fleming
          P.O. Box 30464 Grand Cayman KY1-1202
          Cayman Islands
          Telephone: (345) 945-2187
          Facsimile: (345) 945-2197


HEADCROWN1234: Creditors' Proofs of Debt Due Dec. 21
----------------------------------------------------
The creditors of Headcrown1234 are required to file their proofs
of debt by Dec. 21, 2016, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on Oct. 31, 2016.

The company's liquidator is:

          Zedra Directors (Cayman) Limited
          FirstCaribbean House, 4th Floor
          P.O. Box 487 Grand Cayman KY1-1106
          Cayman Islands
          Telephone: 345 949-7128


ROCKWOOD INTERNATIONAL: Creditors' Proofs of Debt Due Dec. 21
-------------------------------------------------------------
The creditors of Rockwood International Ltd. are required to file
their proofs of debt by Dec. 21, 2016, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on Nov. 8, 2016.

The company's liquidator is:

          CDL Company Ltd.
          P.O. Box 31106 Grand Cayman KY1-1205
          Cayman Islands


SEAST FUNDING: Creditors' Proofs of Debt Due Dec. 21
----------------------------------------------------
The creditors of Seast Funding Limited are required to file their
proofs of debt by Dec. 21, 2016, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on Nov. 9, 2016.

The company's liquidator is:

          Westport Services Ltd.
          c/o Bonnie Willkom
          P.O. Box 1111 Grand Cayman KY1-1102
          Cayman Islands
          Telephone: (345) 949 5122
          Facsimile: (345) 949 7920


SEMF FUNDING: Creditors' Proofs of Debt Due Dec. 21
---------------------------------------------------
The creditors of SEMF Funding Limited are required to file their
proofs of debt by Dec. 21, 2016, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on Nov. 9, 2016.

The company's liquidator is:

          Westport Services Ltd.
          c/o Bonnie Willkom
          P.O. Box 1111 Grand Cayman KY1-1102
          Cayman Islands
          Telephone: (345) 949 5122
          Facsimile: (345) 949 7920


TRIANGULAR AMP: Commences Liquidation Proceedings
-------------------------------------------------
On Nov. 4, 2016, the sole shareholder of Triangular AMP Fund Ltd.
resolved to voluntarily liquidate the company's business.

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

The company's liquidator is:

          Alun Davies
          Walkers
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9001
          Cayman Islands
          Telephone: (345) 914 6365


TRIANGULAR QCM: Commences Liquidation Proceedings
-------------------------------------------------
On Nov. 4, 2016, the sole shareholder of Triangular QCM Fund Ltd.
resolved to voluntarily liquidate the company's business.

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

The company's liquidator is:

          Alun Davies
          Walkers
          190 Elgin Avenue, George Town
          Grand Cayman KY1-9001
          Cayman Islands
          Telephone: (345) 914 6365


VEIO CAPITAL: Commences Liquidation Proceedings
-----------------------------------------------
On Nov. 9, 2016, the shareholders of Veio Capital Management
Limited resolved to voluntarily liquidate the company's business.

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

The company's liquidator is:

          Lau Fu Wing
          Suite 3105
          Alexandra House, 31st Floor
          18 Chater Road
          Central
          Hong Kong


=========
C H I L E
=========


SMU S.A.: Moody's Raises CFR & US$300MM Sr. Notes Rating to B3
--------------------------------------------------------------
Moody's Investors Service has upgraded SMU S.A's corporate family
rating and its US$300 million senior unsecured notes rating to B3
from Caa1.  The outlook is stable.

                         RATINGS RATIONALE

SMU's upgrade to B3 primarily reflects the marked improvements in
the company's operating performance and overall credit metrics
over the last several quarters.  Accordingly, leverage measured by
adjusted debt/EBITDA reduced to 6.4x in the LTM ended September
2016 (from 10.9x in 2014) and EBITDA margin reached 7.8% (versus
6%) in the same period.  Going forward, Moody's expects further -
although gradual - improvements in metrics.

The improvements follow the implementation of a number of
efficiency and cost cut initiatives since the beginning of 2014,
under its updated "Triennial Plan".  Main initiatives included the
reduction in headcounts without affecting the stores services and
sale on non-core assets.  For example, SMU closed approximately 50
underperforming stores in 2013-15 and reduced its capex besides
the financial reorganization process and the implementation of an
aggressive commercial strategy.  As a result, the company was able
to improve operating margins to 4.7% as of LTM ended September
2016 from 1.5% as of December 2014

Despite the recovery in cash generation, SMU's liquidity is still
tight, with cash on hand covering only about 22% of its short term
debt as of September 2016.  Moody's considers that the low
liquidity cushion exposes the company to high refinancing risk and
leaves it vulnerable in case of any potential external shocks.

SMU's ratings are supported by the company's exposure to the
defensive food industry through its extensive supermarket
footprint in Chile, which potentially reduces revenue and margin
volatility.  Although Moody's acknowledges the company's
improvements during the last quarters, SMU's B3 ratings are
constrained by the company's weak liquidity position and small
scale, amidst a competitive operating environment.

The stable outlook reflects Moody's expectation that SMU will
gradually improve its credit and financial profile over the coming
quarters.  The stable outlook also considers Moody's expectations
about the company's ability to manage its exposure to economic
slowdowns in Chile and Peru, without materially affecting its
operating margins.

An upgrade could occur over time if SMU continues to improve its
overall credit metrics, cash generation and operational
performance.  A positive rating action would also be dependent on
an improvement in the company's liquidity profile.
Quantitatively, an upgrade would also require leverage ratios
below 5 times and interest coverage of at least 2.25x on a
sustained basis.

On the other hand, the ratings could be downgraded in case of
further deterioration in SMU's credit metrics, operating
performance or liquidity.

The principal methodology used in these ratings was Retail
Industry published in October 2015.

Based in Santiago, Chile, SMU is a diversified retailer with
operations across the entire country and Peru.  The company's
multi-brand and multi-sector strategy focuses on supermarkets,
wholesale, home improvement, convenience stores and e-grocery
outlets, as well as wholesale and retail outlets in the
construction market.  As of last twelve months ended Sept. 30,
2016 SMU reported total revenues of approximately US$3.4 billion.


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


BANCO DE RESERVAS: Fitch Hikes Issuer Default Ratings to 'BB-'
--------------------------------------------------------------
Following the upgrade of the Dominican Republic's sovereign
rating, Fitch Ratings has upgraded the Issuer Default Ratings
(IDRs) for Banco de Reservas de la Republica Dominicana, Banco de
Servicios Multiples (Banreservas) and Banco Multiple BHD Leon (BHD
Leon) to 'BB-' from 'B+'. The Rating Outlooks were revised to
Stable from Positive for both banks.

On Nov. 18, 2016, Fitch upgraded the Dominican Republic's Long-
Term Foreign and Local Currency IDRs to 'BB-' from 'B+' with a
Stable Outlook. The upgrade reflects the country's continued
strong growth momentum and rising per capita income, reduced
external vulnerabilities and fiscal restraint through the 2016
election cycle.

The positive rating actions reflect Fitch's recent upgrade of
Dominican Republic's IDRs, as the banks' IDRs were constrained by
the sovereign's IDRs. In addition, Fitch expects the current
improvement in the Dominican operating environment to benefit the
financial profiles of the banks.

National ratings of entities that are not listed below remain
unchanged and were not affected in this review.

KEY RATING DRIVERS

Banreservas - IDRs, SUPPORT AND SUBORDINATED DEBT

Banreservas' IDRs, reflect Fitch's expectations of the support the
bank would receive from its sole shareholder, the Dominican
government (IDR 'BB-'/Positive Outlook), if needed.

The bank's systemic importance, its role collecting funds for the
government's single treasury account to pay debt obligations, and
its role as a provider of domestic loans results in an
equalization of its Support Rating Floor with the sovereign's L-T
IDR of 'BB-'. Additionally, Fitch believes the government's
willingness to support Banreservas should it be required is
substantial given its 100% stake in the bank. However, in the
agency's view, the Dominican Republic's capacity of support is
limited resulting in a Support Rating of '4'.

Banreservas' outstanding subordinated debt includes an
international issuance of USD300 million due 2023. The bank's
subordinated note rating is one notch below its supported IDR,
reflecting one notch for loss severity, but no notches for
incremental non-performance risk relative to the bank's IDR, given
the 'gone concern' characteristics of the security. In Fitch's
view, the anchor rating is the IDR, even though there is no
explicit government guarantee on the security, due to Banreservas'
state ownership, policy role and systemic importance.

Banreservas - VR

The upgrade of Banreservas' Viability Rating (VR) to 'B+' from 'B'
reflects a stabilization in private sector loan quality indicators
as well as a reduction in asset concentrations, despite 2016 being
an election year. Nevertheless, the bank's weak capitalization and
asset quality continue to be the factors with the highest
influence on Banreservas' VR. The bank's VR also considers
structural improvements in profitability and stable, albeit low,
levels of capitalization.

The bank's main asset concentration, including loans and
securities, is with a speculative-grade sovereign. This exposure
declined to 3.5x equity at end-September 2016 from 4.4x equity at
year-end (YE) 2015. Banreservas' ratio of impaired private sector
loans to gross private sector loans has stabilized in recent
years, reaching 2% at end-September 2016. This level is now in
line with similarly rated peers in the region.

BHD Leon - IDRS, VR AND SUPPORT

BHD Leon's IDRs are driven by its VR, or its standalone
creditworthiness. The upgrade of BHD Leon's IDRs are in line with
a similar action that Fitch took on the Dominican Republic's
sovereign ratings, as it VRs was constrained by the sovereign's
IDRs.

The upgrade on the VR's captures the limitations previously
imposed by the operating environment which limited the strengths
of the bank: resilient performance, stable funding base, and
improved franchise. However, the bank's VR is still limited by
weaker loan quality, limited access to long-term funding which
results in funding gaps and relatively low income diversification,
compared to better rated banks in the region.

Despite the bank's systemic importance, the government's
inconsistent history of banking sector support for private sector
institutions and the sovereign's current rating level result in a
Support Floor of 'NF' and a Support Rating of '5'.

RATING SENSITIVITIES

Banreservas

IDRS AND SUBORDINATED DEBT

The bank's IDRs and subordinated debt rating are sensitive to a
change in Fitch's assumptions as to support. Changes in the IDRs
are also contingent on sovereign rating actions.

VR

A sustained reduction in asset concentrations, a stronger capital
base, as well as a more established track record of meeting
strategic objectives, could lead to an upgrade of the Banreservas'
VR. An unexpected deterioration in loan quality or profitability
or sustained high disbursements of income to the government that
pressures Banreservas' tangible common equity-to-tangible assets
ratio to below 5.5% could trigger a downgrade of its VR.

SUPPORT RATING AND SUPPORT RATING FLOOR

The SR and SRF are potentially sensitive to any change in
assumptions as to the propensity or ability of the Dominican
government to provide timely support to the bank. This could arise
in the event of a sovereign rating action. Currently, the Outlook
on the Dominican Republic's Long-Term Local and Foreign Currency
IDRs is Stable.

BHD Leon

Future positive changes in BHD Leon's ratings will depend on
sustained improvements in capitalization and asset quality within
the context of positive sovereign rating actions. A deterioration
in asset quality or profitability that causes the bank's Fitch
core capital to risk-weighted assets ratio to fall below 8% could
pressure creditworthiness.

Dominican Republic Government's propensity or ability to provide
timely support to BHD Leon is not likely to change given the
sovereign's low speculative-grade IDR. As such, the SR and SRF
have no upgrade potential.

Fitch has taken the following rating actions:

   Banreservas

   -- Foreign and Local Currency IDRs upgraded to 'BB-' from 'B+';
      Outlook revised to Stable from Positive;

   -- Short-Term Foreign and Local Currency IDRs affirmed at 'B';

   -- Viability Rating upgraded to 'b+' from 'b';

   -- Support Rating affirmed at '4';

   -- Support Floor revised to 'BB-' from 'B+';

   -- Long-term subordinated notes upgraded to 'B+' from 'B'.

   BHD Leon

   -- Foreign and Local Currency Long-Term IDR upgraded to 'BB-'
      from 'B+'; Outlook revised to Stable from Positive;

   -- Foreign and Local Currency Short-Term IDR affirmed at 'B';

   -- Viability Rating upgraded to 'bb-' from 'b+';

   -- Support Rating affirmed at '5';

   -- Support Floor Rating affirmed at 'NF'.


===========
G U Y A N A
===========


* GUYANA: Gets US$9M IDB Loan to Support Economic Diversification
------------------------------------------------------------------
Guyana will improve its public infrastructure and promote economic
diversification and foreign trade with a US$9 million Inter-
American Development Bank loan that will help strengthen the
economy and stimulate exports and investments.

With a small domestic market, Guyana depends on exports for
economic growth. Eighty-two percent of its shipments consist of
fewer than 10 products, mostly from the mining and agricultural
sectors. The limited size of its non-traditional exports provides
an opportunity for diversification. This project is expected to
help reduce market access costs for non-traditional exporters and
increase their shipments.

Non-traditional exporters face major challenges concerning quality
measurement and control, including difficulties with
certification. There are only two accredited laboratories in the
country, none of which has non-traditional exports certification
capabilities. For this reason, the program proposes a series of
moves to accredit labs and train their personnel.

There is also a need to design and implement quality regulations
to help access international markets. Consequently, a trade and
investment framework will be created and courses will be launched
to train small- and mid-sized enterprises on quality and
regulation issues.

Exports diversification, as well as attaining competitiveness in
new markets, require the adoption of adequate quality standards.
With this goal in mind, the program will strengthen quality-
related infrastructure and improve the system's capabilities.

The Business Ministry, in its capacity as executing agency, will
prepare an initial report that includes an updated multi-year
implementing plan, the first annual operating plan, and financial
and procurement plans. The project is in line with Guyana's need
to diversify its economy as laid out in the National
Competitiveness Strategy aimed at accessing new markets.

The project's total cost is US$9 million, of which US$4.5 million
come from the Bank's ordinary capital and the remaining US$4.5
million from its Fund for Special Operations (FOE). The ordinary
capital tranche is for a 30-year term, with six years of grace.
The FOE's component is for a 40-year period, with 40 years of
grace and a 0.25 percent fixed interest rate.


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


ALESTRA S DE RL: S&P Affirms Then Withdraws 'BB' CCR
----------------------------------------------------
S&P Global Ratings affirmed its 'BB' long-term corporate credit
rating on Mexico-based telecom company Alestra, S. de R.L de C.V.
S&P subsequently withdrew the rating at the company's request.
The rating withdrawal also came as a result of Alestra's merger
with Axtel.  Since then, the latter company incorporated Alestra
and ratings on both converged to the same level.

At the time of withdrawal, the outlook was negative, reflecting
S&P's expectation that the company's financial performance will
remain weak until the end of 2016, resulting in debt to EBITDA
above 4.0x and funds from operations to debt below 20%.


BIO PAPPEL: S&P Affirms Then Withdraws 'B' CCR
----------------------------------------------
S&P Global Ratings affirmed its 'B' long-term corporate credit and
issue-level ratings on Mexico-based paper products manufacturer
Bio Pappel Scribe, S.A. de C.V.  S&P subsequently withdrew the
corporate credit and issue-level ratings at the issuer's request.
Following the announcement of the company's redemption of its
notes, S&P no longer rates any of Scribe's debt.  At the time of
the withdrawal, the outlook was stable.

The rating action follows Scribe's announcement of the redemption
of its $238.3 million outstanding senior unsecured notes due 2020
through an intercompany loan provided by its parent company Bio
Pappel.

As of the time of the announcement, Scribe's business and
financial performance was in line with S&P's expectations.

S&P now considers Scribe as a highly strategic subsidiary of Bio
Pappel because S&P believes that there's a strong and long-term
commitment of support from senior group management.  The senior
unsecured notes redemption has been financed through additional
debt raised at the parent company level, which was then lent to
Scribe.  Moreover, S&P believes that Scribe is unlikely to be sold
because it's important to the group's long-term strategy, it
operates lines of business which are integral to the overall group
strategy, and that it shares the same group risk management as its
parent company.  Based on Bio Pappel's publicly available
information and our assessment of the company's business and
financial risk profiles, S&P didn't consider Scribe's rating to be
constrained by the group's credit profile.


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


TRINIDAD CEMENT: CEMEX Makes Takeover Bid
-----------------------------------------
Trinidad Express reports that Mexican multinational building
materials company announced that one of its indirect subsidiaries,
Sierra Trading, will present an offer and take-over bid to all
shareholders of Trinidad Cement Limited.

CEMEX wants to acquire up to 132,616,942 ordinary shares in TCL
for TT$4.50 in cash per TCL share, which together with Sierra's
existing share ownership in TCL of approximately 39.5%, would, if
successful, result in Sierra holding up to 74.9% of the equity
share capital in TCL, according to Trinidad Express.

Full acceptance of the offer would result in a cash payment by
Sierra of approximately TT$597 million (US$89 million), the report
notes.  The Offer price represents a premium of 33.1% over the
December 1, 2016, closing price of TCL's shares in the Trinidad
and Tobago Stock Exchange, the report relays.

Details of the offer is contained in a press statement issued by
CEMEX.

Among other conditions, the offer will be conditional on Sierra
acquiring at least an amount of TCL shares that would allow CEMEX
to consolidate TCL, the report says.  Unless extended, the Offer
period is expected to close on January 10, 2017.

If the offer is successful, TCL will continue operating as usual.
Additionally, TCL will be maintained as a publicly listed company
on the Trinidad and Tobago Stock Exchange with the benefit of a
strong local shareholding together with the enhanced benefit of
proven management and operational expertise from CEMEX, the report
discloses.

TCL's main operations are in Trinidad and Tobago, Jamaica and
Barbados, the report notes.  TCL is the majority shareholder of
Caribbean Cement Company Limited, a main cement producer in
Jamaica, the report says.

As of September 30, 2016, TCL and its subsidiaries had EBITDA of
approximately US$77 million for the last twelve months, net debt
of approximately US$113 million, representing a net financial
leverage of approximately 1.5x, the report notes.  If the Offer is
successful, TCL would be consolidated by CEMEX.

"This Offer represents a clear sign of our commitment to TCL and
the region. In addition, although we believe that our Offer is
attractive given the premium to the current share price, as part
of this commitment, it is also important to us that TCL remains a
listed company, so that local investors can continue to benefit
from the development of TCL in the future," said Fernando A.
Gonzalez, CEO of CEMEX, the report relays.  "We look forward to
continuing our strong relationship with TCL," he added.

CEMEX is a global building materials company that provides high
quality products and reliable service to customers and communities
in more than 50 countries. Celebrating its 110th anniversary,
CEMEX has a rich history of improving the well-being of those it
serves through innovative building solutions, efficiency
advancements, and efforts to promote a sustainable future.

As reported in the Troubled Company Reporter-Latin America on June
30, 2016, S&P Global Ratings revised its outlook on Trinidad
Cement Limited Group (TCL) to positive from stable.  At the same
time, S&P affirmed its 'B-' corporate credit and issue-level
ratings on TCL.


TRINIDAD GUARDIAN: Sabga Dismisses Job Cut Rumors
-------------------------------------------------
Sasha Harrinanan at Trinidad and Tobago Newsday reports that
rumors of impending job cuts at the Trinidad Guardian newspaper
were dismissed by Chairman and CEO of the ANSA McAl Group of
Companies (ANSA McAl), A. Norman Sabga.  The newspaper is a
division of Guardian Media Limited (GML), one of the companies
owned by ANSA McAl.

"We've put in a new IT (Information Technology) system, which I
believe has gone into certain media houses, which automates the
procedure and the planning of the paper.  Based on that, it
streamlines the operations and there's been some cuts there.
Beyond that I have not been told about any further cuts," Mr.
Sabga told reporters, according to Trinidad and Tobago Newsday.

Asked again about job cuts at Guardian, including several persons
in the sub-editing and archives departments, the ANSA McAl
chairman reiterated that he knew nothing of the sort, the report
notes.

"I didn't say there were cuts coming. You (reporter) said there
were cuts coming. I said that the cuts have happened and I am not
aware that there are further cuts on the horizon," Mr. Sabga
declared, the report relays.

GML's unaudited accounts for the ninemonth period ended September
30, 2016, recorded a sharp drop in profit before tax (PBT)
compared to the previous year, according to the report.  The
company's PBT as of the third quarter (Q3) of 2016 was TT$7.8
million, a significant drop from the TT$36.7 million GML earned in
PBT for the same period in 2015, the report says.  The company
also reported a drop in generated revenue, down from TT$159.6
million last year to $119.4 million as of Q3 in 2016, the report
notes.  Without making specific reference to the above financial
data, Mr. Sabga said, "It has been a rough year for (GML) and our
expenses have jumped significantly." He then called on GML's staff
to work with management to improve the company's performance,
notes Trinidad and Tobago Newsday.

"We do need to look at the organization, to rally the troops to do
more, to do better. Understand that we are in a difficult period
and call on our staff to help us weather this storm and to
continue to improve the organization going forward," the report
quoted Mr. Sabga as saying.  Asked by Newsday what expenses he was
referring to, Mr. Sabga replied, "The majority is people.

The headcount swole (SI C) significantly in the last three or four
years."


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


* URUGUAY: To Get $20MM-IDB Loan for New National Tourism Program
-----------------------------------------------------------------
The Inter-American Development Bank (IDB) has approved a line of
credit for $20 million in investment projects to finance national
tourism development in Uruguay. As part of this effort, the IDB
gave the green light to a first $5 million disbursal for the
Tourism Corridor Development Program, which will help 12 cities
and towns along the Uruguay River corridor and their 275,000
residents.

The goal of the line of credit is to contribute to job and income
creation in up and coming towns, consolidating tourism as a factor
of territorial balance. It calls for recovering and upgrading
public tourism attractions with the potential to lure new markets
and in-demand features, with the criteria of adaptation and
resilience to climate change and environmental sustainability.

It will also support tourism entrepreneurship and innovative
investment, and strengthen sub-national tourism institutions.

The first disbursal will support the goal of increasing tourism
spending in departments that make up the Uruguay River corridor
(Artigas, Salto, Paysand£, R°o Negro and Soriano), as this is what
creates jobs and boosts local people's income.

To this end, the transaction will finance the creation and
consolidation of facilities in the corridor that are geared toward
developing nautical, cultural and eco-tourism.

It will also provide technical and financial support for local
entrepreneurs to create and consolidate new tourism ideas through
the so-called Fondo Concursable (Bidding Fund), and the
implementation of a tourism observatory.

The first $5 million approved as part of the line of credit for
investment projects is over 25 years with a grace period of five
and a half years. It has an interest rate based on LIBOR and
features a local contribution of $1.25 million.


                            ***********


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.

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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.


                   * * * End of Transmission * * *