/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/170224.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 Friday, February 24, 2017, Vol. 18, No. 40 Headlines A R G E N T I N A ARGENTINA: To Tackle Fiscal Deficit More Aggressively CORDOBA PROVINCE: Moody's Rates USD550MM Sr. Unsec. Notes 'B3' CORDOBA PROVINCE: S&P Assigns 'B-' Rating to $550MM Notes B R A Z I L BRAZIL: Jose Serra Resigns as Foreign Minister OI S.A: S&P Affirms 'D' CCR on Judicial Reorganization C A Y M A N I S L A N D S AMBASSADOR SAN JUAN: Members Receive Wind-Up Report ASIA RACE: Shareholders Receive Wind-Up Report AVENUE STRATEGIC: Shareholders Receive Wind-Up Report CAMBIUM FUND: Placed Under Voluntary Wind-Up CYPRESS MANAGEMENT: Shareholders Receive Wind-Up Report DOUBLE HAVEN: Shareholders Receive Wind-Up Report FR MIDSTATES: Shareholders Receive Wind-Up Report ICIG LIMITED: Placed Under Voluntary Wind-Up LGBPIV - HV CR: Commences Liquidation Proceedings LG IIIA - HV CR: Commences Liquidation Proceedings MARADONA LIMITED: Commences Liquidation Proceedings NEXUS ASIAN PRIVATE: Commences Liquidation Proceedings NEXUS ASIAN PUBLIC: Commences Liquidation Proceedings NKND TRADING: Commences Liquidation Proceedings POWER ASSETS: Shareholders Receive Wind-Up Report SANCTUAIRE CAPITAL: Shareholders Receive Wind-Up Report SEAL LIMITED: Commences Liquidation Proceedings VICTOR EQUITY: Shareholders Receive Wind-Up Report WYETREE YIELD: Commences Liquidation Proceedings ZEDRA CORPORATE: Shareholders Receive Wind-Up Report D O M I N I C A N R E P U B L I C DOMINICAN REPUBLIC: Agrees With IMF on Nixed Tax Breaks J A M A I C A DIGICEL GROUP: Will Reduce Global Workforce by 25% M E X I C O MEXICO: Sets Condition for NAFTA Renegotiation With U.S. SAN LUIS POTOSI: Moody's Withdraws Ba3 GS Local Currency Rating S U R I N A M E SURINAME: Fitch Lowers LT Currency Issuer Default Ratings to 'B-' - - - - - ================= A R G E N T I N A ================= ARGENTINA: To Tackle Fiscal Deficit More Aggressively ----------------------------------------------------- Taos Turner at The Wall Street Journal reports that Argentina's government aims to reduce its fiscal deficit next year to 3.2% and then to 2.2% in 2019, Economy Minister Nicolas Dujovne said. The new targets are part of an increasingly aggressive effort that officials say will lower financing costs and boost economic growth, according to The Wall Street Journal. The government hopes to cut the deficit to 4.2% this year, says the report. The report relays that Mr. Dujovne said the government will continue cutting subsidies that have long kept the price of gas, electricity and public transportation among the cheapest in the world. "As we eliminate subsidies we can increase spending on public works, such as better roads and better hospitals," Mr. Dujovne told a news conference, the report says. He said the government will begin publishing quarterly fiscal deficit targets and use them to adjust federal spending each quarter, the report notes. Cutting the deficit, he said, will eventually allow the government to cut taxes, the report relays. Small-business owners in Argentina often say that if they paid all the taxes required by law they would end up bankrupt, the report notes. Consumers here also pay much more for home appliances and electronics than do people in other countries, thanks in part to high taxes, the report discloses. Gasoline in Argentina costs double what it does in the U.S. because half the price is composed of taxes, the report adds. The same is true of cars. "We're thinking about presenting a tax reform package to Congress in 2018," Mr. Dujovne said, noting that cutting taxes will be possible if the government reduces the deficit, WSJ relays. "Fiscal policy is core to macroeconomic policy. We need both of those pillars to be working," he added. As reported in the Troubled Company Reporter-Latin America on Jan. 30, 2017, Moody's Investors Service has assigned a B3 rating to the Government of Argentina's US$3.25 billion bond due 2022 and the US$3.75 billion bond due 2027. The outlook on the Government of Argentina's rating is stable. On Oct. 17, 2016, the Troubled Company Reporter-Latin America reported that Fitch Ratings has affirmed Argentina's sovereign ratings as: -- Long-term Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B', Outlook Stable; -- Senior unsecured Foreign Currency bonds at 'B'; -- Country Ceiling at 'B'; -- Short-Term Foreign and Local Currency IDRs at 'B'. As previously reported by the TCR-LA, Argentina defaulted on some of its debt late July 30, 2014, after expiration of a 30-day grace period on a US$539 million interest payment. Earlier that day, talks with a court-appointed mediator ended without resolving a standoff between the country and a group of hedge funds seeking full payment on bonds that the country had defaulted on in 2001. A U.S. judge had ruled that the interest payment couldn't be made unless the hedge funds led by Elliott Management Corp., got the US$1.5 billion they claimed. The country hasn't been able to access international credit markets since its US$95 billion default 13 years ago. On March 30, 2016, after more than 12 hours of debate in the Senate, Argentina's Congress passed a bill that will allow the government to repay holders of debt that the South American country defaulted on in 2001, including a group of litigating hedge funds that won judgments in a New York court. The bill passed by a vote of 54-16. CORDOBA PROVINCE: Moody's Rates USD550MM Sr. Unsec. Notes 'B3' -------------------------------------------------------------- Moody's Investors Service has assigned a B3 (Global Scale foreign currency) rating to the Senior Unsecured Notes to be issued by the Province of Cordoba for up to USD550 million. The rating is in line with the Province's long term foreign currency issuer rating, which carries a stable outlook. RATINGS RATIONALE The proposed Notes issuance have been authorized by the Provincial's Laws Nß 10.340 and 10.410 whereas Governor's Decree Nß170/2017 approved the documentation related to the Notes issuance. The Province of C¢rdoba will use the proceeds of the Notes for any of the following purposes: (i) to the cancelation of the Province's outstanding 12.375% Senior Notes due 2017 for USD396 million, either by way of its repayment at maturity, repurchase, exchange, and/or any type of debt management; and/or (ii) to finance infrastructure projects, other than those related to the trunk pipelines system that have their own independent financing. The Notes will constitute direct, general, unconditional and unsubordinated obligations of the Province. They will be denominated and payable in US dollars with an expected maximum maturity of 10 years and fixed interest rate on a semi-annual basis. The Notes will be subject to the State of New York Law. After the issuance of these Notes and coupled with planned new debts with other funding sources, amortizations and exchange rate evolution; Moody's anticipates that the ratio of total outstanding debt relative to total revenues will grow up to 40% approximately -from the 35% estimated at the end of 2016 fiscal year. The assigned debt rating is in line with the Province's long term foreign currency issuer rating because these Notes do not present any credit enhancements that differentiate them from the general solvency of the province already reflected in its current issuer rating level. 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 debt to total revenues ratio rising above 50%- 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. CORDOBA PROVINCE: S&P Assigns 'B-' Rating to $550MM Notes --------------------------------------------------------- S&P Global Ratings assigned its 'B-' issue-level rating to the province of Cordoba's (B-/Stable/--) unsecured notes for up to $550 million. The amortizing notes will be denominated in dollars. The province will use the proceeds to fund infrastructure projects and for the refinancing of its debt. S&P don't view the new debt as harmful to the province's financial profile. S&P expects that its low debt profile, despite its vulnerability to exchange rate risk which has increased in 2016, will continue to support Cordoba's creditworthiness. Including the new $550 million issuance, S&P expects the province's debt stock to reach around ARP31 billion by the end of 2017, or nearly 21% of its operating revenue. S&P's 'B-' foreign and local currency ratings and 'b-' stand-alone credit profile (SACP) on the province of Cordoba reflect its individual credit profile and the institutional framework it operates in. The SACP is a means of assessing the intrinsic creditworthiness of Cordoba under the assumption that there is no rating cap. Cordoba, like all local and regional governments (LRGs) in Argentina, operates under a very volatile and underfunded institutional framework. Cordoba's weak economy, very weak budgetary flexibility, weak liquidity, and high contingent liabilities also constrain the ratings. On the other hand, the province's average budgetary performance and low debt burden support its creditworthiness. The renewed relations with the central government following the election of governor Juan Schiaretti and president Mauricio Macri, as well as the cure of Argentina's 2014 default on its foreign currency bonds, allowed Cordoba to resolve some outstanding issues it had with the national government such as the previously withheld 15% of coparticipation funds and access external liquidity and to plan investments. Nevertheless, the province now has a higher exposure to unhedged exchange-rate risk, at around 80% of its outstanding debt. Cordoba issued an international bond in May 2016 to finance its capex, unlike some of its domestic peers that have been accessing international markets to cover their liquidity needs. The province's main capex projects include the construction of roads, gas pipelines, housing, and sewage facilities. Following the change at the national government and amid more favorable macroeconomic conditions, Cordoba is slowly moving towards a more formal prudent debt management policy, although the province still lacks a track record in managing high levels of unhedged foreign currency debt and adequate cash flow planning. "The stable outlook on the province mirrors our outlook on the sovereign. The outlook reflects renewed dialogue between the Argentine LRGs and the federal government about tackling the provinces' fiscal and economic challenges in the short to medium term. Given that we don't believe Cordoba could meet the conditions to have a higher rating than the sovereign, we would only consider raising our ratings on the province during the next 12 months if we were to raise our foreign and local currency ratings, and our transfer and convertibility assessment (T&C), on Argentina. Such an upgrade would have to be accompanied by improvement in Cordoba's currently weak long-term capital and financial planning, and debt and liquidity management; or improvement in budgetary flexibility or consistently stronger budgetary performance in the form of operating surpluses. At the same time, structural improvements in the institutional framework in which the province operates could help improve its creditworthiness. On the other hand, we could lower our ratings on Cordoba during the next 12 months if Argentina's T&C assessment weakens, if we lower the sovereign local or foreign currency ratings, or if we perceive that the province's financial commitments are unsustainable or that it faces a near-term payment crisis. However, we don't foresee this scenario materializing during the next 12 months," S&P said. RATINGS LIST Province of Cordoba Issuer credit rating B-/Stable/-- Rating Assigned Province of Cordoba Sr. unsec. notes B- =========== B R A Z I L =========== BRAZIL: Jose Serra Resigns as Foreign Minister ---------------------------------------------- Paulo Trevisani at The Wall Street Journal reports that Brazil's Senator Jose Serra stepped down as foreign minister, the government said. In a letter to President Michel Temer, a copy of which was shown to reporters, Mr. Serra, who is 74 years old, said health problems kept him from carrying out the work, according to at The Wall Street Journal. Mr. Serra didn't mention details of his health condition in the letter. A spokeswoman for the administration said his replacement hasn't been announced yet. The report notes that Mr. Serra said in the letter he will resume work as a senator. "I will work (in Congress) for the approval of projects aiming at recovering the economy," the letter says, the report relays. Mr. Serra has been Brazil's foreign minister since May, when then Vice President Temer became the sitting president as Dilma Rousseff stood trial for impeachment, the report notes. Ms. Rousseff was ousted in August. Mr. Serra was widely seen as a key member of Mr. Temer's administration. He turned away from the foreign policy of Ms. Rousseff's leftist Workers' Party, or PT, which had ruled the country since 2003 and favored close ties with leftist leaders, such as Cuba's Fidel Castro and Venezuela's Nicolas Maduro, the report discloses. The U-turn raised criticism from left-wing politicians, who said he was turning his back to longtime partners of Brazil, but was praised by supporters as a way to beef up the country's standing in the international community, said political scientist Sergio Praca, the report relays. "Serra came in with a mandate to restore credibility," the report quoted Mr. Praca as saying. Mr. Serra pushed for more trade openness, a move thwarted by a weak economy and turbulent politics that kept foreign investors at bay, the report notes. In December, he had spine surgery, according to The Journal. A foreign ministry official said the long travels inherent to the job have become a torment for Mr. Serra. According to the report, the foreign ministry press office didn't comment on Mr. Serra's health. A spokeswoman for Mr. Serra didn't reply to a message seeking comment. The resignation comes as Mr. Temer struggles with low popular support, the report relays. A recent poll put his approval rate at 10%. His administration is pushing an ambitious agenda of fiscal reform in Congress, including pension and tax reform, the report adds. 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'. OI S.A: S&P Affirms 'D' CCR on Judicial Reorganization ------------------------------------------------------ S&P Global Ratings affirmed its 'D' corporate credit and issue- level global and national scale ratings on Oi S.A. At the same time, S&P withdrew the recovery ratings on the company's rated debt, until it has an updated capital structure once Oi emerges from judicial reorganization. The 'D' ratings continue to reflect the company's judicial reorganization, given that all of its bank and capital market debt is in default. Oi remains in talks with its creditors and shareholders to adjust its initial debt restructuring plan to meet interests of both sides. Once the judicial reorganization process is approved and finalized, S&P will evaluate the company under its updated capital structure and new strategic plan. ========================== C A Y M A N I S L A N D S ========================== AMBASSADOR SAN JUAN: Members Receive Wind-Up Report --------------------------------------------------- The members of Ambassador San Juan Limited received on Jan. 26, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Elliot Greenberg c/o Maples and Calder Attorneys-at-law P.O. Box 309, Ugland House Grand Cayman KY1-1104 Cayman Islands ASIA RACE: Shareholders Receive Wind-Up Report ---------------------------------------------- The shareholders of Asia Race Investments (Cayman) Ltd received on Jan. 25, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Walkers Liquidations Limited Cayman Corporate Centre, 27 Hospital Road George Town, Grand Cayman KY1-9008 Cayman Islands AVENUE STRATEGIC: Shareholders Receive Wind-Up Report ----------------------------------------------------- The shareholders of Avenue Strategic Partners, Ltd. received on Jan. 26, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Sonia Gardner Avenue Capital Group 399 Park Avenue, 6th Floor New York, NY 10022 United States of America Telephone: +1 (212) 878 3500 CAMBIUM FUND: Placed Under Voluntary Wind-Up -------------------------------------------- The sole shareholder of Cambium Fund Ltd., on Dec. 20, 2016, resolved to voluntarily wind up the company's operations. Only creditors who were able to file their proofs of debt by Jan. 24, 2017, will be included in the company's dividend distribution. The company's liquidator is: Eric Haymann c/o Higgs & Johnson Willow House Cricket Square P.O. Box 866 Grand Cayman KY1-1103 Cayman Islands Telephone: +41 44 386 60 00 CYPRESS MANAGEMENT: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Cypress Management Holding Ltd. received on Jan. 25, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stephen Nelson Collas Crill Willow House, 2nd Floor, Cricket Square P.O. Box 709 Grand Cayman, KY1-1107 Cayman Islands Telephone: 949-4544 Facsimile: 949-7073 DOUBLE HAVEN: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Double Haven Credit Opportunities Feeder Fund received on Jan. 26, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Kanwaljit Singh Bahra c/o Double Haven Capital (Hong Kong) Limited Level 41, 4104-08, 248 Queen's Road East Wan Chai Hong Kong FR MIDSTATES: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of FR Midstates Cayman Holdings, Ltd. received on Jan. 25, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Daren Schneider c/o Matt Bernardo Telephone: +1 (345) 914 4268 ICIG LIMITED: Placed Under Voluntary Wind-Up -------------------------------------------- The sole shareholder of ICIG Limited, on Dec. 21, 2016, resolved to voluntarily wind up the company's operations. Creditors are required to file their proofs of debt to be included in the company's dividend distribution. The company's liquidator is: Avalon Ltd. Reference: GL Landmark Square, 1st Floor, 64 Earth Close PO Box 715, Grand Cayman KY1-1107 Cayman Islands Telephone: (+1) 345 769 4422 Facsimile: (+1) 345 769 9351 LGBPIV - HV CR: Commences Liquidation Proceedings ------------------------------------------------- The sole shareholder of LGBPIV - HV CR Limited, on Dec. 19, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 25, 2017, will be included in the company's dividend distribution. The company's liquidator is: Aisling Clarke c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands LG IIIA - HV CR: Commences Liquidation Proceedings -------------------------------------------------- The sole shareholder of LG IIIA - HV CR Limited on Dec. 19, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 25, 2017, will be included in the company's dividend distribution. The company's liquidator is: Aisling Clarke c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands MARADONA LIMITED: Commences Liquidation Proceedings --------------------------------------------------- The sole shareholder of Maradona Limited, on Dec. 20, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 25, 2017, will be included in the company's dividend distribution. The company's liquidator is: Aisling Clarke c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands NEXUS ASIAN PRIVATE: Commences Liquidation Proceedings ------------------------------------------------------ The sole shareholder of Nexus Asian Hybrid Credit Private Securities Limited, on Dec. 21, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 25, 2017, will be included in the company's dividend distribution. The company's liquidator is: Aisling Clarke c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands NEXUS ASIAN PUBLIC: Commences Liquidation Proceedings ----------------------------------------------------- The sole shareholder of Nexus Asian Hybrid Credit Public Securities Limited, on Dec. 21, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 25, 2017, will be included in the company's dividend distribution. The company's liquidator is: Aisling Clarke c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands NKND TRADING: Commences Liquidation Proceedings ----------------------------------------------- The sole shareholder of NKND Trading Ltd., on Dec. 15, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 24, 2017, will be included in the company's dividend distribution. The company's liquidator is: Natasha Morgan c/o Maples Liquidation Services (Cayman) Limited Boundary Hall PO Box 1093 Grand Cayman KY1-1102 Cayman Islands POWER ASSETS: Shareholders Receive Wind-Up Report ------------------------------------------------- The shareholders of Power Assets (Cayman) Limited received on Jan. 25, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Stephen Nelson Collas Crill Willow House, 2nd Floor, Cricket Square P.O. Box 709 Grand Cayman, KY1-1107 Cayman Islands Telephone: 949-4544 Facsimile: 949-7073 SANCTUAIRE CAPITAL: Shareholders Receive Wind-Up Report ------------------------------------------------------- The shareholders of Sanctuaire Capital Limited received on Jan. 25, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Sherwyn Mohan Katarki 80 Anson Road #25-02 Fuji Xerox Towers Singapore 079907 Telephone: +65 9127 8044 SEAL LIMITED: Commences Liquidation Proceedings ----------------------------------------------- The sole shareholder of Seal Limited, on Dec. 20, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 25, 2017, will be included in the company's dividend distribution. The company's liquidator is: Aisling Clarke c/o Maples Liquidation Services (Cayman) Limited PO Box 1093, Boundary Hall Grand Cayman KY1-1102 Cayman Islands VICTOR EQUITY: Shareholders Receive Wind-Up Report -------------------------------------------------- The shareholders of Victor Equity Fund II, Ltd. received on Jan. 26, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: K. Dunlop Scott 5425 Wisconsin Avenue Suite 700 Chevy Chase Maryland 20815 United States of America Telephone: +1 240 482 0400 e-mail: blord@columbiaptrs.com WYETREE YIELD: Commences Liquidation Proceedings ------------------------------------------------ The sole shareholder of Wyetree Yield Distribution Fund (General Partner) Limited, on Dec. 15, 2016, resolved to voluntarily liquidate the company's business. Only creditors who were able to file their proofs of debt by Jan. 24, 2017, will be included in the company's dividend distribution. The company's liquidator is: Natasha Morgan c/o Maples Liquidation Services (Cayman) Limited Boundary Hall PO Box 1093 Grand Cayman KY1-1102 Cayman Islands ZEDRA CORPORATE: Shareholders Receive Wind-Up Report ---------------------------------------------------- The shareholders of Zedra Corporate Services Limited received on Feb. 3, 2017, the liquidator's report on the company's wind-up proceedings and property disposal. The company's liquidator is: Zedra Directors (Cayman) Limited c/o Enola Reid Telephone: +1 (345) 914-5413 c/o 136 Shedden Road One Capital Place, 3rd Floor P.O. Box 487 George Town, Grand Cayman Cayman Islands KY1-1106 =================================== D O M I N I C A N R E P U B L I C =================================== DOMINICAN REPUBLIC: Agrees With IMF on Nixed Tax Breaks ------------------------------------------------------- Dominican Today reports that Finance Minister Donald Guerrero said the government is willing to promote fiscal changes, focusing especially on the elimination of some tax breaks and improved tax collection, but noted that a sweeping fiscal adjustment isn't necessary, as International Monetary Fund (IMF) recently recommended. "We don't dismiss the IMF's comments. We share the comments that the country needs to strengthen its revenue raising base. The difference we have with the position of the Fund is that we know that once the construction of the Punta Catalina plant is completed, resources that have been transferred during the last years for its construction -- which reach approximately 1% of GDP -- are going to release, and will allow fiscal accounts to strengthen even more," the official said, according to Dominican Today. The report notes that after the visit of its technical delegation, the IMF stated concern about the sustainability of the Dominican debt and suggested that an "important fiscal adjustment" was required. "It would be irresponsible to sit down to negotiate a fiscal pact that involves new tax figures if we're unable to administer them." In a press conference at the Finance Ministry, Guerrero said there is a provision for the relief of public accounts and to revise tax exemptions, which account for 6.4% of GDP, some of which have already fulfilled their objectives, the report relays. As an example Guerrero cited the Cinematographic Activity Promotion Law 108-10, which includes tax breaks on income, the report notes. He said it aims to maintain the same figure, "but with a greater ability to monitor whether the exemptions are granted to those who correspond," the report discloses. The report notes that he also referred to the elimination of bearer shares, which he described as "havens to hide beneficiaries from operations that are plausible to be taxed. That figure is going to disappear from the Dominican Republic." As reported in the Troubled Company Reporter-Latin America on Nov. 22, 2016, Fitch Ratings has taken the following rating actions on the Dominican Republic: -- Long-Term Foreign Currency Issuer Default Rating (IDR) upgraded to 'BB-' from 'B+'; assigned Stable Outlook; -- Long-Term Local Currency IDR upgraded to 'BB-' from 'B+'; assigned Stable Outlook; -- Senior unsecured Foreign and Local Currency bonds upgraded to 'BB-' from 'B+'; -- Short-Term Foreign Currency IDR affirmed at 'B'; -- Short-Term Local Currency IDR affirmed at 'B'. ============= J A M A I C A ============= DIGICEL GROUP: Will Reduce Global Workforce by 25% -------------------------------------------------- RJR News reports that Digicel Group has said it will reduce its global workforce by 25 per cent. In a statement, Digicel Group said redundancies will be done within the next 18 months, according to RJR News. However, the company said it will offer a voluntary redundancy option to employees starting March 1 this year, adds RJR News. As reported in the Troubled Company Reporter-Latin America on May 27, 2016, Fitch Ratings has affirmed the ratings of Digicel Group Limited (DGL) and its subsidiaries Digicel Limited (DL) and Digicel International Finance Limited (DIFL), collectively referred to as 'Digicel' as follows. DGL -- Long-Term Issuer Default Rating (IDR) at 'B'; Stable Outlook; -- $US 2.0 billion 8.25% senior subordinated notes due 2020 at 'B-/RR5'; -- $US 1 billion 7.125% senior unsecured notes due 2022 at 'B-/RR5'. DL -- Long-Term IDR at 'B'; Stable Outlook; -- $US 250 million 7% senior notes due 2020 at 'B/RR4'; -- $US 1.3 billion 6% senior notes due 2021 at 'B/RR4'; -- $US 925 million 6.75% senior notes due 2023 at 'B/RR4'; DIFL -- Long-Term IDR at 'B'; Stable Outlook; -- Senior secured credit facility at 'B+/RR3'. The Rating Outlook is Stable. =========== M E X I C O =========== MEXICO: Sets Condition for NAFTA Renegotiation With U.S. -------------------------------------------------------- EFE News reports that Washington must acknowledge that the United States has profited from the North American Free Trade Agreement (NAFTA), which President Donald Trump blames for massive losses of American manufacturing jobs, before Mexico will agree to renegotiate the pact, Mexican Economy Secretary Ildefonso Guajardo said. Mr. Guajardo, who is in Toronto for a conference on the future of relations in North America along with Foreign Relations Secretary Luis Videgaray, said that without such an acknowledgment by the US government, talks on revising NAFTA would get off to a bad start, according to EFE News. The report notes that the Mexican economy secretary said he did not expect talks on renegotiating NAFTA to begin "before the summer." The report relays that Mr. Guajardo admitted that the negotiations would "not be easy" and would definitely not include quotas or tariffs. President Trump threatened during the campaign to walk away from NAFTA, saying it was a destroyer of American jobs and benefited Mexico, although he later said he would seek to renegotiate the trade agreement, the report notes. NAFTA, whose members are the US, Mexico and Canada, took effect on Jan. 1, 1994. SAN LUIS POTOSI: Moody's Withdraws Ba3 GS Local Currency Rating --------------------------------------------------------------- Moody's de Mexico withdrew the State of San Luis Potosi's Ba3 (Global Scale, local currency) and Baa1.mx (Mexico's National Scale) issuer ratings. Moody's also withdrew the negative outlook. At the same time, Moody's withdrew debt ratings of the following three enhanced loans: -- Baa2/Aa2.mx ratings of the MXN 2,680 million enhanced loan with Banorte -- Baa3/Aa3.mx ratings of the MXN 1,430 million enhanced loan with Banorte -- Ba3/A3.mx ratings of the MXN 750 million enhanced loan with Banorte RATINGS RATIONALE Moody's has withdrawn the ratings for its own business reasons. Please refer to the Moody's Investors Service's Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com. The methodologies used in these ratings were Rating Methodology for Enhanced Municipal and State Loans in Mexico published in June 2014 and Regional and Local Governments published in January 2013. =============== S U R I N A M E =============== SURINAME: Fitch Lowers LT Currency Issuer Default Ratings to 'B-' ----------------------------------------------------------------- Fitch Ratings has downgraded Suriname's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'B-' from 'B+'. The Rating Outlook remains Negative. The issue ratings on Suriname's senior unsecured Foreign Currency bonds are also downgraded to 'B-' from 'B+'. The Country Ceiling was downgraded to 'B-' from 'B+'. The Short-Term Foreign and Local Currency IDRs are affirmed at 'B'. KEY RATING DRIVERS The downgrade of Suriname's IDRs to 'B-' from 'B+' reflects the deterioration of its public and external balance sheets relative to the 'B' median and continued macro instability in the wake of commodity shocks. Slow progress on fiscal adjustment has sustained a large fiscal deficit, contributed to rapidly rising government debt and taken the IMF Stand-By Arrangement (SBA) approved in May 2016 off track. Exchange-rate adjustment has reduced external imbalances but produced high inflation. Suriname's external liquidity remains weak relative to its larger external vulnerabilities. Fiscal policy uncertainty and adverse debt dynamics tilt risks to the downside. Macro conditions deteriorated in 2016. The Suriname dollar lost 46% of its value against the US dollar as the central bank adopted a flexible exchange-rate regime and raised interest rates. Currency depreciation and electricity tariff increases lifted average inflation to 55.5% year-over-year (yoy). The economy contracted more-than-expected by 10.4% in 2016 as a result of negative oil and gold price shocks, declining gold-mine production, and cessation of alumina exports. A steep decline in real wages and a brake on government spending led to falling domestic investment and consumption. Fitch expects the recession to persist in 2017. Public finances remain weak, reflected in a large general government (GG) deficit at 8% of GDP on a preliminary cash basis in 2016 (2015: 10.7%). Falling commodity revenues, which represented one-third of fiscal revenue during 2006-2013, cut GG revenues by 6pp of GDP. Expenditure flexibility is limited by the large public-sector wage bill, 7.1% of GDP in 2016, despite the government's near wage freeze during 2016; electricity subsidies estimated at 1.2% of GDP; and the rising interest burden, 9% of revenues in 2016. Natural resources, including a new gold mine, will make a lesser fiscal contribution in 2017-2018 than in past years. The government slowly cleared some domestic arrears to contractors and suppliers during 2016, but it incurred new arrears during the year, highlighting financing constraints. Suriname's debt dynamics have deteriorated sharply. GG debt at 65.1% of GDP at December 2016 exceeds the 'B' median at 56.2% of GDP, with greater embedded currency risk, as close to 80% of GG debt is foreign currency-denominated. Suriname's GG debt has more than doubled from 26.4% in 2014. Public debt sustainability is highly sensitive to interest-rate risk and currency-depreciation pressure. Reform momentum has slowed. The Bouterse administration partially reversed and/or delayed full implementation of electricity-tariff and fuel-tax increases planned under the SBA in light of public opposition. Teacher strikes and union salary-increase demands have raised pressure on the public wage bill in 2017. The National Assembly has not yet passed the 2017 budget or key legislation for a value-added tax, which Fitch expects would be required to meet the government's 2018 primary surplus target envisioned in the SBA. The government's financing flexibility remains limited and it could face a fiscal financing gap in 2017. Proceeds of a USD550 million Eurobond issue in October was used to refinance existing obligations of the state oil company and to pre-finance a commercial sovereign maturity due September 2017. Financing pressures could emerge in 2017 as a result of fiscal policy uncertainty, saturation of the domestic capital market, and reduced access to concessional IFI loans with the SBA off-track. Suriname lacks a fiscal savings buffer, with GG deposits at 1.8% of GDP, in contrast to other oil-exporting peers. GG external debt service is USD230 million in 2017. Financial system fragilities represent a potential contingent liability. The government agreed in January to inject an undisclosed amount of capital into DSB, Suriname's largest financial institution, whose credit portfolio deteriorated in 2016 due to the slow clearance of government arrears and the recession. Timely credit quality and capitalization data are not available since 2015. Deposit dollarization rose to 70% in December 2016 from 58% the previous year. External imbalances declined following exchange-rate adjustment. Fitch expects the current account deficit to have narrowed sharply to 3.6% of GDP in 2016, from 19.4% of GDP in 2015, and it was fully financed by FDI to a new gold mine. Pressure on the current account will be sustained by fiscal deficits and higher external interest payments despite strengthening gold and oil export performance. International reserve (IR) accumulation in this scenario will depend on the government's ability to secure external financing amid lower FDI inflows. External vulnerabilities have risen relative to Suriname's still weak external liquidity. Public external borrowing and depletion of the IR buffer weakened its sovereign-net-foreign-assets to - 49.8% of GDP in 2016, from a net creditor position in 2006-2012, and much worse than the 'B' median (2016: -15.7% of GDP). Gross IR, USD398.6 million in January, stabilized in the fourth quarter of 2016 (4Q16) at low levels, 2.3 months of CXP, relative to the 'B' median of 3.9 months. Suriname's commodity dependence at 77% of CXR exceeds the 'B' median. Structural features provide some support to Suriname's rating, including its higher per-capita-GDP and social indicators than the 'B' median. Suriname's governance indicators score above peers as well. However, governance weaknesses negatively affected macroeconomic policy in 2015 as the government delayed fiscal and external adjustment to commodity shocks ahead of elections. SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO) Fitch's proprietary SRM assigns Suriname a score equivalent to a rating of 'CCC' on the Long-Term FC IDR scale. Fitch's sovereign rating committee adjusted the output from the SRM to arrive at the final Long-Term FC IDR by applying its QO, relative to rated peers, as follows: -- Public Finances: +1 notch, to reflect Suriname's manageable commercial sovereign external debt service obligations in the near term, which is not captured by the SRM. Fitch's SRM is the agency's proprietary multiple regression rating model that employs 18 variables based on three year centered averages, including one year of forecasts, to produce a score equivalent to a Long-Term FC IDR. Fitch's QO is a forward-looking qualitative framework designed to allow for adjustment to the SRM output to assign the final rating, reflecting factors within Fitch criteria that are not fully quantifiable and/or not fully reflected in the SRM. RATING SENSITIVITIES The main factors that could lead to a rating downgrade are: -- Deterioration of external liquidity and/or sovereign external debt service capacity; -- Failure to achieve consolidation of public finances that increase prospects for stabilization of the general government debt burden; -- Failure to take policy decisions that facilitate a return to macro stability and sustainable growth. The current Rating Outlook is Negative. Consequently, Fitch does not currently anticipate developments with a material likelihood of leading to an upgrade. The following factors however could lead to the Outlook returning to Stable: -- Consolidation of public finances consistent with stabilization of the general government debt-to-GDP ratio; -- Strengthened external liquidity and/or easing of external financing constraints that reduce the risk of a funding crisis. KEY ASSUMPTIONS -- Fitch assumes gold prices of USD1,100 per oz. during 2017- 2018. -- Fitch assumes the average Brent crude price will rise on a steadily increasing path during 2017-2018. *********** 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. 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