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

               Friday, June 9, 2017, Vol. 18, No. 114



BRAZIL: Electoral Court Extends Trial That Could Oust President
CEMIG GERACAO: Moody's Cuts Global Scale Debt Rating to B2

C A Y M A N  I S L A N D S

ACCORD NUCLEAR: Shareholders Receive Wind-Up Report
BARRINGTON PROPERTIES II: Members' Final Meeting Set for June 19
BEAULIEU PROPERTIES: Shareholders' Final Meeting Set for June 19
CRYSTAL FUND II: Shareholders' Final Meeting Set for June 15
FPCM INVESTMENT: Shareholders' Final Meeting Set for June 15

MOORE STEPHENS: Shareholders' Final Meeting Set for June 13
NOVEL DIAMOND: Shareholders' Final Meeting Set for June 15
ORBY LTD: Shareholders' Final Meeting Set for June 15
PRIMA LUCE: Shareholders' Final Meeting Set for June 15

SUMMIT PRIVATE: Shareholder to Hear Wind-Up Report on June 13

D O M I N I C A N   R E P U B L I C

DOMINICAN REP: Pork, Poultry Producers Cry Foul on Free Trade


GRUPO CEMENTOS: Fitch Rates Proposed US$275MM Sr. Notes BB(EXP)
MEXICO: Inflation at Eight-Year High in May


PARAGUAY: BCP lowers Inflation Target From 4.5 to 4, IMF Says


VENEZUELA: Discusses $1BB Debt Restructuring With Moscow
VENEZUELA: Journalists Board Buses to Challenge Censorship

                            - - - - -


BRAZIL: Electoral Court Extends Trial That Could Oust President
Paulo Trevisani and Samantha Pearson at The Wall Street Journal
reports that Brazil's top electoral court agreed to extend a trial
that could cancel the results of the 2014 presidential election
and oust President Michel Temer after a dispute over the admission
of recently uncovered evidence.

Mr. Temer and former President Dilma Rousseff, who won the
election with Mr. Temer as her running mate, are under
investigation for allegedly funding their campaign using proceeds
from a vast corruption scheme at oil company Petroleo Brasileiro
SA, or Petrobras, according to The Wall Street Journal.  Mr. Temer
then took over as president in August 2016 after Ms. Rousseff was
impeached for breaking budget laws, the report notes.  Mr. Temer
and Ms. Rousseff have denied wrongdoing.

At a four-hour televised session at the Superior Electoral
Tribunal, or TSE, Herman Benjamin, who is overseeing the case,
said recent testimony from employees of construction group
Odebrecht SA should be included in the trial, the report relays.
Gilmar Mendes, the head of the TSE, rejected Mr. Benjamin's
argument, the report discloses.

Since the complaints about illegal campaign funding were first
filed more than two years ago, the country's investigation into
bribery and kickbacks at Petrobras continues to reveal new
evidence linked to the TSE case, the report notes.  Mr. Temer is
also under Supreme Court investigation over allegations that he
took bribes from meatpacker JBS SA in the graft scheme, the report
says.  He has denied wrongdoing.

The trial, which started June 6, Tuesday night, was scheduled to
last until June 8 before the extension, with the first votes
expected as early as Wednesday, June 7, the report relays.  A
simple majority at the TSE is needed to cancel the election
results and Mr. Temer's mandate, but justices are allowed to
change their minds during the trial and the court must wait until
the final vote is cast to issue its ruling, the report notes.

Mr. Temer can appeal the TSE's verdict to the Supreme Court,
although legal experts say that may not help as three of the
electoral court justices also sit on the high court, the report
relays.  Members of the Brazilian Social Democracy Party--a major
ally of the president--have also said it would likely abandon Mr.
Temer's government if the TSE rules to oust him, the report adds.

As reported in the Troubled Company Reporter-Latin America on
May 24, 2017, S&P Global Ratings placed its 'BB' long-term foreign
and local currency sovereign credit ratings on the Federative
Republic of Brazil on CreditWatch with negative implications.  S&P
also affirmed the short-term foreign and local currency ratings at
'B'. The transfer and convertibility assessment is unchanged at
'BBB-'. In addition, S&P placed the 'brAA-' national scale rating
on CreditWatch with negative implications.

CEMIG GERACAO: Moody's Cuts Global Scale Debt Rating to B2
Moody's America Latina downgraded to B2/ (Global Scale and
Brazil National Scale, respectively) from B1/ the senior
secured and unsecured debt ratings assigned to the subsidiaries of
Companhia Energetica de Minas Gerais': Cemig Geracao e Transmissao
S.A and Cemig Distribuicao S.A. Moody's also downgraded the issuer
ratings of Cemig D to B2/ from B1/

As part of this rating action, Moody's assigned Corporate Family
Ratings of B2/ (Global Scale and Brazil's national scale,
respectively) to Cemig and assigned issuer ratings of B2/ to
Cemig GT. In addition, the agency withdrew Cemig's B1/
issuer ratings as well as Cemig GT Corporate Family Ratings of

The outlook on all ratings remains negative.


Companhia Energetica de Minas Gerais

-- Corporate Family Ratings assigned at B2 (Global Scale) and (Brazil National Scale)

-- Issuer Ratings of B1 (Global Scale) and (Brazil
National Scale) withdrawn

-- Outlook: negative

Cemig Geracao e Transmissao S.A.

-- Senior secured and unsecured debt ratings downgraded to
B2/ from B1/ (Global Scale and Brazil National Scale,

-- Issuer Ratings assigned at B2 (Global Scale) and (Brazil
National Scale)

-- Corporate Family Ratings of B1 (Global Scale) and
(Brazil National Scale) withdrawn

-- Outlook: negative

Issuer: Cemig Distribuicao S.A.

-- Issuer Ratings and senior unsecured debt ratings downgraded to
B2/ from B1/ (Global Scale and Brazil National Scale,

-- Outlook: negative


The ratings downgrade reflects Moody's perception of growing debt
refinancing risks facing Cemig in the context of a charged short
term debt maturity profile and the company's limited liquidity.
The company's short term liquidity pressures will be compounded by
obligations related to a put option contract of approximately
BRL1.6 billion on shares of the electricity utility company Light
S.A (B1/ positive) that have to be paid by November. The
rating action also reflects Moody's expectations that the
company's free cash flow generation will remain negative in the
next 12 to 18 months, adding pressure on Cemig's needs to execute
on its planned asset sales and refinance its debt maturities.

The B2/ ratings remain supported by: (i) Cemig's solid
market position, economic relevance as well as by the company's
established relationship with domestic banks that, Moody's
considers, could facilitate the company's debt refinancing
strategy, (ii) Cemig's large and diversified pool of assets that
can be sold to provide cash or pledged as guarantees to secure
further financings including the non-pledged listed shares held by
Cemig in Transmissora Alianca de Energia Eletrica and Light S.A;
and (iii) Moody's expectations of gradual improvements in
operating performance and cash flow generation resulting from a
supportive tariff review for Cemig D due next year as well as from
slowly declining domestic interest rates and Brazil's gradual
economic recovery.

The negative outlook reflects the material execution risks related
to the company's plans to refinance and sell assets to address its
short term debt maturities and other obligations.

In 2016 Cemig saw a marked deterioration in its operating
performance as a result of a sharp decline in energy sales, a
negative tariff adjustment affecting its distribution business and
impairments on the company's equity participation in greenfield
projects. Cemig's weak operating performance translated into
weaker credit metrics. The company's CFO pre WC to debt fell to
17.4% in 2016 from 25.5% in 2015, while its CFO pre WC interest
coverage dropped to 2.4x from 3.9x in 2015.

Moody's notes that during Q1 2017 the company's performance
improved visibly with revenues and EBITDA growing by 8% and 71%
respectively. Notwithstanding, Moody's expects Cemig's EBITDA and
operating cash flow generation will close the year broadly in line
with 2016 and result in negative free cash flow generation in

Cemig has announced a BRL 6.6 billion divestment program. The
company aims to complete at least 50% by H2 2018. While Moody's
recognizes the company's efforts to pursue assets sales, it
considers the timing and value of the sale of those assets
uncertain at this stage. The agency notes that many of the asset
sale negotiations are still at an early stage or have yet to
start, providing unclear source of revenues in the short term.

Cemig's liquidity profile is weak. As of march 31, 2017 the
company faced BRL4.3 billion of debt maturing in 2017 and BRL3.9
billion during 2018, which compares to a cash & cash equivalents
position of only BRL1.7 billion (including cash and short-term
investments). Moody's anticipates that the company's free cash
flows will be negative in 2017 and only neutral in 2018 driven by
expectations of a slow recovery in operating performance and the
impact of higher capital expenditures in the distribution segment.
The negative free cash flow in 2017 will leave the company
dependent on debt refinancing and asset sales to be able to
service its debt in the next 12-18 months. Moody's expects that
Cemig's long standing relationship with local and federal banks
will support the company's refinancing strategy going forward,
even if at higher costs. The agency expects Cemig to be able to
monetize its unpledged equity participation in the listed
companies Taesa and Light to repay its upcoming debt maturities
should its long term refinancing plan fail.


In light of the negative outlook, an upgrade of the ratings is
unlikely in the near term. A stabilization of the outlook could be
considered upon visible improvements in Cemig's liquidity profile
and operating performance such that CFO pre WC interest coverage
ratio exceeds 3.0x, and CFO pre WC to debt remains above 20% on a
sustainable basis.

Further deterioration in Cemig's liquidity or the company's
inability to extend the average tenor of its debt maturity
profile, either with internally generated cash flows or via
alternative sources of funding could lead to a downgrade.

Headquartered in Belo Horizonte in the state of Minas Gerais,
Cemig is a leading Brazilian integrated utility operating in the
sectors of electricity distribution, generation and transmission
with over 8.000MW in installed capacity and approximately 4,700km
of transmission lines across the country. The company also owns
controlling equity participation in the electricity utility Light
S.A (B1/ positive) and the transmission company
Transmissora Alianca de Energia Eletrica (Ba2/ negative).
Cemig is controlled by the state of Minas Gerais (B1 negative)
which owns 50.69% of Cemig's voting capital. In 2016 Cemig
reported net revenues and EBITDA of BRL19 billion and BRL 2.6
billion respectively.

The methodologies used in rating Companhia Energetica de Minas
Gerais - CEMIG were Regulated Electric and Gas Utilities published
in December 2013, and Government-Related Issuers published in
October 2014. The principal methodology used in rating Cemig
Geracao e Transmissao S.A. was Unregulated Utilities and
Unregulated Power Companies published in May 2017. The principal
methodology used in rating Cemig Distribuicao S.A. was Regulated
Electric and Gas Utilities published in December 2013.

Moody's National Scale Credit Ratings (NSRs) are intended as
relative measures of creditworthiness among debt issues and
issuers within a country, enabling market participants to better
differentiate relative risks. NSRs differ from Moody's global
scale credit ratings in that they are not globally comparable with
the full universe of Moody's rated entities, but only with NSRs
for other rated debt issues and issuers within the same country.
NSRs are designated by a ".nn" country modifier signifying the
relevant country, as in ".za" for South Africa. For further
information on Moody's approach to national scale credit ratings,
please refer to Moody's Credit rating Methodology published in May
2016 entitled "Mapping National Scale Ratings from Global Scale
Ratings". While NSRs have no inherent absolute meaning in terms of
default risk or expected loss, a historical probability of default
consistent with a given NSR can be inferred from the GSR to which
it maps back at that particular point in time. For information on
the historical default rates associated with different global
scale rating categories over different investment horizons.

C A Y M A N  I S L A N D S

ACCORD NUCLEAR: Shareholders Receive Wind-Up Report
The shareholders of Accord Nuclear Resources, G.P. received on
May 30, 2017, the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Matthew S. Raben
          c/o Matt Bernardo
          Telephone: +1 (345) 914 4268

BARRINGTON PROPERTIES II: Members' Final Meeting Set for June 19
The members of Barrington Properties II Ltd. will hold their final
meeting on June 19, 2017, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

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

BEAULIEU PROPERTIES: Shareholders' Final Meeting Set for June 19
The shareholders of Beaulieu Properties Limited will hold their
final meeting on June 19, 2017, at 9:30 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

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

CRYSTAL FUND II: Shareholders' Final Meeting Set for June 15
The shareholders of Crystal Fund II, Ltd. will hold their final
meeting on June 15, 2017, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Olivier Gozlan
          c/o Oristan Limited
          Commonwealth Trust Limited
          P.O. Box 3321
          Road Town
          British Virgin Islands
          Telephone: +44 207 681 7030

FPCM INVESTMENT: Shareholders' Final Meeting Set for June 15
The shareholders of FPCM Investment Limited will hold their final
meeting on June 15, 2017, at 10:20 a.m., to receive 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
          Telephone: +1 (345) 949 0100

MOORE STEPHENS: Shareholders' Final Meeting Set for June 13
The shareholders of Moore Stephens Decosimo Cayman Limited will
hold their final meeting on June 13, 2017, at 10:30 a.m., to
receive the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

          Russell S. Homer
          c/o Tanya Armstrong
          P.O. Box 2499, George Town Grand Cayman KY1-1104
          Cayman Islands
          Telephone: (345) 946-0820
          Facsimile: (345) 946-0864

NOVEL DIAMOND: Shareholders' Final Meeting Set for June 15
The shareholders of Novel Diamond Fund will hold their final
meeting on June 15, 2017, at 10:00 a.m., to receive 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
          Telephone: +1 (345) 949 0100

ORBY LTD: Shareholders' Final Meeting Set for June 15
The shareholders of Orby Ltd. will hold their final meeting on
June 15, 2017, at 10:00 a.m., to receive the liquidator's report
on the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Shailini Rao
          Eton Park
          399 Park Avenue, 10th Floor
          New York
          New York 10022
          United States of America
          Telephone: +1 (212) 756 5300

PRIMA LUCE: Shareholders' Final Meeting Set for June 15
The shareholders of Prima Luce Holdings Ltd. will hold their final
meeting on June 15, 2017, at 10:00 a.m., to receive the
liquidator's report on the company's wind-up proceedings and
property disposal.

The company's liquidator is:

          Alexandre Kunz
          184 Ocean Drive
          Sentosa Cove
          Singapore 098615
          Telephone: +65 6227 9935

Fitch Ratings has affirmed the 'BB' Long-Term Issuer Default
Rating (IDR) and senior secured debt rating assigned to Russell
Investments Cayman Midco, Ltd., Russell Investments U.S.
Institutional Holdco, Inc., and Russell Investments U.S. Retail
Holdco, Inc. (collectively, Russell Investments). The Rating
Outlook is Negative.

These rating actions were undertaken as part of Fitch's global
peer review of traditional investment managers. For more
information on the peer review, please refer to the press release
'Fitch Completes Traditional Investment Manager Global Peer
Review' dated June 7, 2017.


The affirmation of Russell Investment's ratings reflect its strong
franchise, assets under management (AUM) diversification across
geographies and product sets, experienced management team,
scalable business model and demonstrated track record of
delivering strong fund performance relative to benchmarks.

Primary rating constraints include higher leverage, lower interest
coverage, and lower margins relative to higher-rated peers, and a
fully-secured wholesale funding profile. Ratings are also
constrained by the sensitivity of the business model to changes in
market conditions and investor appetite for actively managed
investment products, lack of operating history as a stand-alone
entity and uncertainty surrounding financial and strategic
objectives associated with Russell Investment's private equity
ownership, which contains an increased risk of more equity-
oriented actions.

As of March 31, 2017, Russell Investments had $266.4 billion of
AUM, spread across single/multi-asset products and derivative
overlay products offered to retail and institutional investors in
the U.S., EMEA, APAC and Canada. The company derives revenues
primarily from traditional investment management activities but
also provides investment services (exposure management,
transitions, etc.) and consulting services, which are moderate
diversifiers of revenue.

From a profitability perspective, Fitch-calculated gross EBITDA
margins are expected to be in the low-30% range over the next
several years (excluding performance fees), which is weaker than
more highly rated peers, but is at the low-end of Fitch's 'a'
category quantitative benchmark range. This compares favorably to
EBITDA margins that have historically been in the low-20% range.
EBITDA margins could improve depending on the extent to which
Russell Investments is able to improve cost efficiencies through
headcount reduction and system improvements and achieve scale
efficiencies through AUM expansion. However, Fitch views margin
improvements cautiously given an increased risk of changes in
strategy given private equity ownership and the level of Russell
Investments' historical margins relative to projections.

Fitch calculates Russell Investments' pro forma cash flow leverage
when accounting for $57.4 million of additional run rate cost
synergies that are already actioned or identified to be 3.9x on a
trailing 12 month (TTM) basis through the first quarter of 2017
(1Q17), including the $850 million outstanding on its senior
secured term loan and $150 million of instalment payments owed to
the London Stock Exchange Group (LSEG). Current leverage is within
Fitch's 'bb' category quantitative benchmark range for traditional
investment managers of 3.0x to 5.0x.

When Fitch initiated ratings on Russell Investments in June 2016,
management had indicated a long-term leverage target (on a net
debt basis) of less than 2.0x. Fitch-calculated leverage on a net
debt basis was 3.2x at TTM 1Q17. In February 2017, Russell added
$200 million of borrowings to the term loan and distributed
proceeds to its private equity owners. Fitch now believes the
achievement of lower leverage is delayed, which is viewed
negatively, particularly given the deviation from the articulated
financial policy. An inability to execute on cost synergies, which
allows for de-leveraging, may put downward pressure on the
ratings. Additionally, the private equity ownership is likely to
limit upward rating momentum, as Fitch believes any reductions in
leverage may be temporary in nature.

Fitch-calculated pro forma fixed charge coverage including the
$37.5 million installment payment and the $8.5 million initial
required amortization of term loan principal, both due in December
2017 (1% of term loan principal balance each year thereafter) was
2.5x on a TTM basis through 1Q17, which is viewed as weak relative
to the assigned ratings. EBITDA coverage of interest expenses was
4.5x as of the same period. At March 31, 2017, Russell Investments
had $181.7 million of cash on its balance sheet, which is
currently sufficient to meet its obligations. Fitch expects
Russell Investments will continue to increase its cash position
throughout the year in order to meet its obligations and fund
working capital needs.

The Negative Outlook reflects Fitch's increased uncertainty with
respect to the future financial policy of the company given its
private equity ownership and weaker leverage and fixed-charge
coverage metrics, which increases the sensitivity of the ratings
to future declines in AUM, fee rates, and EBITDA.

Russell Investments Cayman Midco, Ltd.'s Long-Term IDR is
equalized with the IDRs assigned to debt-issuing entities Russell
Investment U.S. Institutional Holdco, Inc. and Russell Investments
Retail Holdco Inc. and reflects that all management fee streams
flow into Russell Investments Cayman Midco, Ltd. and allow it to
meet its guarantee obligations to its debt-issuing subsidiaries.

The senior secured debt is equalized with the IDRs of Russell
Investments, reflecting Fitch's expectation of good recovery
prospects for the instrument under a stress scenario.


Further deviations in Russell Investments' financial or operating
strategies, particularly potential further leveraged shareholder-
friendly distributions, could call into question the credibility
of management's/ownership's articulated financial policy, and
therefore, lead to negative rating action. Inability to achieve
sufficient cost-synergies, a sustained increase in cash flow
leverage beyond 5.0x, a material decrease in EBITDA margins
(excluding performance fees), a material decrease in fixed charge
coverage, or sustained material investment underperformance or AUM
outflows may also lead to a downgrade.

A revision of the Rating Outlook to Stable would be driven by a
sustained track record of executing on financial and operating
objectives including the successful implementation of cost saving
initiatives leading to EBITDA expansion and visible progress in
deleveraging towards articulated targets and improvement of fixed
charge coverage.

While Fitch believes positive rating momentum is limited, given
the recent relevering, ratings upside is possible over the longer
term, provided the company remains committed to, and successfully
executes on its deleveraging, cost improvement and margin
expansion plans. Specifically, ratings could be positively
influenced by gross leverage approaching or below 3.0x, gross
EBITDA margins (excluding performance fees) steadily above 30%, an
improvement in coverage, and favorable investment performance and
asset flows. Additional positive drivers include successful
execution of strategic objectives and an improvement in diversity
of funding as to include a meaningful amount of unsecured debt.

The senior secured debt rating is primarily sensitive to changes
in the long-term IDR of Russell Investments, and to a lesser
extent, the recovery prospects of the instrument.

Fitch has affirmed the following ratings:

Russell Investments Cayman Midco, Ltd. (guarantor)
-- Long-Term IDR at 'BB'.

Russell Investments U.S. Institutional Holdco, Inc. (co-borrower)
Russell Investments U.S. Retail Holdco, Inc. (co-borrower)
-- Long-Term IDR at 'BB';
-- Senior secured debt at 'BB'.

The Rating Outlook is Negative.

SUMMIT PRIVATE: Shareholder to Hear Wind-Up Report on June 13
The shareholder of Summit Private Investments Offshore Ltd. will
hear on June 13, 2017, at 10:00 a.m., the liquidator's report on
the company's wind-up proceedings and property disposal.

The company's liquidator is:

          Elian Fiduciary Services (Cayman) Limited
          c/o Julie Hughes
          Telephone: +1 (345) 815 1426
          Facsimile: +1 (345) 945-6265

D O M I N I C A N   R E P U B L I C

DOMINICAN REP: Pork, Poultry Producers Cry Foul on Free Trade
Dominican Today reports that representatives of Dominican
Republic's and pork and poultry producers complained of lack of
regulation in their sectors, and of sanitary and trade hurdles
with Haiti.

They also complain that compliance with stipulations in the
Central America-US Free Trade Agreement (DR-CAFTA) has failed,
according to Dominican Today.

Speaking during the Corripio Media Group weekly luncheon, the
business leaders stressed that both sectors, to boost exports need
protection from imports, on standard labeling, and to avert losses
due to a lack of vaccines to eradicate pests such as swine flu and
"Newcastle" in chickens, the report notes.

"We invest some RD$24 million annually just to fight swine flu,"
they said, warning that "we fear going bankrupt" if action in
those areas isn't taken, the report relays.

Dominican Pork Producers Federation president Israel Brito said
they produce 80 percent of the country's pork consumption, whereas
the remaining 20 percent are imports, the report discloses.  "This
causes serious difficulties, and on failure to revise DR -CAFTA,
thousands of producers will go bankrupt," he added.

                            Fear Bankruptcy

"In October we made a presentation to the commission that has to
do with the DR-CAFTA, we know that it's not so easy, because it's
a matter of nations, not bilateral, but nobody is obliged to
commit suicide; There are 34,000 families that live off the pork
sector and this threatens our existence," Mr. Brito said, the
report adds.

As reported in the Troubled Company Reporter-Latin America on
May 1, 2017, S&P Global Ratings affirmed its 'BB-/B' long- and
short-term sovereign credit ratings on the Dominican Republic.
The outlook remains stable.  The transfer and convertibility (T&C)
assessment is unchanged at 'BB+'.


GRUPO CEMENTOS: Fitch Rates Proposed US$275MM Sr. Notes BB(EXP)
Fitch Ratings has assigned a rating of 'BB(EXP)' to Grupo Cementos
de Chihuahaua S.A.B. de C.V.'s (GCC) proposed up to USD275 million
senior notes. Proceeds from the notes will be used to fund the
refinancing of GCC's USD260 million notes due 2020 and for general
corporate purposes.

The guarantors of the notes will be GCC Cemento, S.A. de C.V.,
Cementos de Chihuahua, S.A. de C.V. and GCC of America, Inc. The
notes will rank equal in right of payment to all other unsecured


Leading Market Shares

Grupo Cementos de Chihuahua, S.A.B. de C.V.'s (GCC) contiguous
presence from Chihuahua in northern Mexico to North Dakota and its
efficient distribution and logistics system allow it to serve
markets in 14 states across the U.S. Midwest, Southwest and Rocky
Mountain regions. The company is the dominant cement producer in
the state of Chihuahua and has strong market positions in
Colorado, North Dakota, South Dakota, Wyoming, New Mexico and
western Texas.

Competitive Industry

GCC derives about 70% of its EBITDA from the U.S. market, where it
often competes with larger global and regional players with more
financial resources. This competitive threat has been somewhat
mitigated by GCC's wide distribution reach relative to its smaller
scale. The company continued to generate positive FCF through the
most recent industry downturn and maintained relatively high
profitability. Fierce price competition following periods of
waning demand remains a key risk for cement producers with U.S.

Sound Operating Performance

Net sales during 2014-2016 remained relatively stable at around
USD750 million, mostly reflecting a weaker Mexican peso and stable
consolidated volumes at robust levels. Operating EBITDA
strengthened to USD196 million as of first quarter 2017 from
USD162 million a year ago, primarily due to strong pricing, the
contribution from acquired assets, and lower fuel and freight
expenses. Muffled capacity expansions and rising demand in the
U.S. should support rising prices in the intermediate term.

Cemex's Texas Assets

GCC acquired USD306 million in assets previously owned by CEMEX,
S.A.B. de C.V in November of 2016. The purchase involved a cement
plant in Odessa, TX with an annual production capacity of 514,000
tons as well as other ready-mix, aggregates and asphalt assets.
The assets are complementary to GCC's footprint and should
strengthen its position in western Texas and, to a lesser extent,
in New Mexico.

High Pro Forma Leverage

GCC's total debt was USD700 million as of first-quarter 2017 and
pro forma gross leverage was about 3.4x. Deleveraging to year-end
2015 levels of 2.7x is unlikely to occur until 2019, as the
company is in a USD90 million expansion to its Rapid City, SD
plant. The expansion is expected be completed during 2018 and will
increase plant capacity by 440,000 tons per year. Modest debt
amortizations during the construction phase support only modest
deleveraging during 2017 and 2018.


-- Revenues measured in U.S. dollars grow by double digits in
    2017, mainly reflecting the acquisition of CEMEX assets, and
    by high single digits in 2018, reflecting additional capacity;
-- EBITDA rises above USD200 million in 2017 and strengthens
    further in 2018;
-- Debt amortizes according to schedule;
-- Capex is financed mostly through internal cash flow generation
    and available cash;
-- Dividends remain low in the USD10 million to USD15 million per
    year range.


Future developments that may, individually or collectively, lead
to a negative rating action include:

-- Weak operational results reflecting increased price
    competition, market share loss or a material slowdown in
    cement demand on GCC's key markets of Chihuahua, Colorado,
    Western Texas, South Dakota and New Mexico;
-- A large debt-financed acquisition that increases total
    leverage above 3.5x;
-- A down turn industry cycle that causes net debt/EBITDA to rise
    above 3.0x;
-- Sustained negative FCF generation.

A rating upgrade in the near term is unlikely considering the
company's, business profile, targeted capital structure and
current credit metrics. A track record of maintaining total
leverage levels at or below 2.0x and a strong liquidity profile
would be considered positive for credit quality.


GCC's liquidity is sound. The company's cash position as of first-
quarter 2017 was USD137 million, and Fitch expects its FCF to be
neutral during 2017 and positive in 2018. This compares with debt
maturities of USD4 million for 2017 and USD17 million for 2018.
GCC's total debt as of March 31, 2017 was USD700 million and its
pro forma net debt/EBITDA leverage is estimated at about 2.7x,
compared with 1.8x as of year-end 2015. The company maintains good
access to bank lending, as evidenced by debt refinancings during
2013, 2015 and 2016.


Fitch currently rates GCC:

-- Long-Term Foreign Currency Issuer Default Rating (IDR) 'BB';
-- Long-Term Local currency IDR 'BB';
-- USD260 million senior notes due 2020 'BB'.

The Rating Outlook is Stable.

MEXICO: Inflation at Eight-Year High in May
Anthony Harrup at Reuters reports that Mexican consumer-price
inflation held at an eight-year high in May, supporting
expectations that the Bank of Mexico will continue raising
interest rates this month.

The consumer-price index fell 0.12% in May as summertime subsidies
on residential electricity rates offset price increases in food
and other goods, the National Statistics Institute said, according
to Reuters.

But the annual rate rose to 6.16% from 5.82% at the end of April,
its highest rate since early 2009, the report notes.

Core CPI, which excludes energy and fresh fruit and vegetables,
rose 0.28% in May and was up 4.78% in the past 12 months, the
report relays.  The core index also excludes government-controlled
tariffs such as bus fares, which were raised in Mexico City to
compensate for the big jump in gasoline prices at the start of the
year, the report discloses.

The rise in the inflation rate has prompted the Bank of Mexico to
more than double its overnight interest rate since December 2015,
as it seeks to keep the impact of higher fuel costs and the
depreciation of the Mexican peso from affecting medium and long-
term inflation expectations, the report says.

Central Bank Gov. Agustin Carstens said that the rate increases,
which began while inflation was still below the central bank's 3%
target, have helped keep inflation in check and to hold down
expectations, and insisted that inflation isn't out of control,
the report relays.

"If we hadn't done anything it's likely we'd have inflation close
to 8% and inflation really would have been unanchored," the report
quoted Mr. Carstens as saying.

The central bank expects the annual rate to remain well above the
2%-4% target band this year, but that it will begin to ease by
year-end and return toward the target in 2018, the report notes.

The bank raised rates for a sixth consecutive meeting in May, and
is widely expected to raise the rate by another quarter percentage
point to 7% on June 22, the report relays.

Several board members said the rate-raising cycle could be
approaching an end when they agreed unanimously last month to
raise rates, the report discloses.  The median estimate of banks
surveyed this week by Citibanamex sees the overnight rate ending
this year at 7.25%, the report adds.


PARAGUAY: BCP lowers Inflation Target From 4.5 to 4, IMF Says
A staff team from the International Monetary Fund (IMF), led by
Mr. Hamid Faruqee, visited Asuncion and Encarnacion during May 22
to June 2 to hold discussions for the 2017 Article IV
consultation. At the conclusion of the visit, Mr. Faruqee issued
the following statement:

"Paraguay's economy is performing robustly, with growth among the
highest in Latin America. Stronger growth can be largely
attributed to a combination of positive supply shocks in key
sectors, firmer private spending, and public sector efforts to
close infrastructure gaps. There are signs that the expansion this
year is becoming more broad based across sectors. With recent
indicators suggesting vigorous activity, we have revised our real
GDP growth forecast upwards to 4.3 percent for 2017. Recent wage
increases should support consumption, while investment is picking
up, reflecting both public and private sector activity.

"The BCP lowered the inflation target from 4.5 to 4 percent
earlier this year. While still below target, headline inflation
has been rising and underlying inflation pressures have edged
higher. Although monetary conditions remain accommodative,
inflation expectations appear to be well anchored around the lower
target. On the fiscal side, the authorities have shown laudable
restraint on the growth of current primary expenditures, while
accelerating public investment. The external current account
surplus is expected to narrow with imports gaining strength
relative to last year. International reserves remain above
standard adequacy measures.

"The banking system remains profitable and well capitalized. Given
past rapid credit growth, however, some sectors need to reduce
indebtedness and ongoing adjustment in bank balance sheets will
take more time to complete. Broad-based measures of loan quality
deteriorated last year. In response, banks have increased
provisioning and NPLs remain manageable. There are signs that
credit from unregulated non-traditional lenders is growing, but
this remains a small fraction of credit.

"The macroeconomic policy-mix has been broadly appropriate. If the
expansion continues to broaden and become more durable, as bank
credit growth resumes, monetary policy accommodation should be
gradually removed to maintain low inflation. If downside risks to
growth materialize, the authorities have policy space to respond
within the constraints of the central bank's price stability
mandate. The broadly neutral fiscal stance envisaged for 2017 is
appropriate, as is continuing a growth-friendly shift in the
composition towards capital investment. Public sector debt is
relatively low and remains on a sustainable path.

"Looking beyond the near-term, continued policy efforts will be
needed to ensure stronger, sustainable and more inclusive growth.
Overcoming structural challenges requires further strengthening of
institutions and policy frameworks, as well as closing key
infrastructure gaps.

"The inflation targeting regime has served Paraguay well in
promoting macroeconomic stability. The BCP has become increasingly
transparent and credible. Monetary policy effectiveness could be
further enhanced by strengthening the central bank's policy
framework and improving predictability. In particular, for the
operation of the interest rate corridor, continuing efforts in
draining excess liquidity through additional issuance of
Instrumentos de Regulacion Monetaria would help better align
targeted policy rates with interbank rates. Predictability of
foreign exchange operations could also be improved, given that
dollar sales have not always been implemented as announced.
Discretionary interventions in the foreign exchange market should
continue to be limited to exceptional circumstances such as
disorderly market conditions. In addition, credit dollarization
remains high. Finally, greater use of forward-looking policy
guidance in public statements could strengthen communications,
policy signals, and improve the public's understanding of the
BCP's reaction function.

"On fiscal policy, the 2017 budget culminated in an unprecedented
presidential veto, highlighting the need to strengthen the budget
process. We expect that the authorities will meet the numerical
ceilings of the fiscal responsibility law (FRL) with efforts
already underway to exercise continued spending restraint. To
enhance the credibility of the fiscal anchor, it would be
desirable to modify the assessment of FRL compliance to include
the execution stage as well as the budget approval stage. The
authorities should strengthen the budget process, for example with
procedural rules to have any amendments require an offset to
respect a given budgetary envelope.

"Over the last decade, Paraguayan authorities implemented
essential measures to strengthen tax administration and revenue
mobilization with technical assistance from the IMF. Institutional
capacity at the revenue authority (SET) has expanded in several
dimensions. Nevertheless, staffing, institutional, and legal
constraints--including on tax compliance, enforcement, and
penalties--present substantial barriers to further efficiency
gains. Furthermore, coordination between the SET and the customs
administration authority (DNA) could be strengthened.

"Paraguay's pension system faces near- and longer-term problems
and needs to be reformed. Containing risks from current and future
imbalances in the Instituto de Prevision Social (IPS) is a crucial
priority. The IPS public health program is underfunded, as is the
major public sector retirement program (Caja Fiscal). Moreover,
pressures will rise over time and additional pension programs,
including that of the IPS, will experience funding shortfalls as
the population ages. The authorities should consider parametric
reforms as well as other options, such as cost sharing (e.g.,
copays, deductibles) arrangements for health programs. More
broadly, progress on legislation to introduce a regulator for
pension funds could also contribute to better mobilize saving held
there to deepen domestic capital markets.

"The authorities have made important progress on introducing risk-
based bank supervision, ratifying a new banking law in December
2016. However, the law is only part of a broader agenda to
strengthen financial sector oversight that needs to advance.
Crucial initiatives include: (i) revisions to the BCP organic
charter; (ii) establishment of a financial stability council;
(iii) implementation of deposit insurance for savings and loan
cooperatives; and (iv) integrating financial information through a
single credit bureau. Furthermore, approving legislation regarding
the Sociedades Anonimas would bring regulations on bearer
securities on par with international standards and help safeguard
banking correspondent relationships.

"Raising potential growth requires addressing key structural
issues that constrain productive capacity and public service
quality. The authorities continue to advance in the implementation
of their National Development Plan (NDP) for 2014-30. Additional
investment in transport infrastructure would relieve congestion
and facilitate trade. Improving electricity transmission and
distribution, which are inadequate to meet growing energy demand
and tap the potential of the binational hydropower plants, is also
desirable. Finally, improving public investment management would
generate more infrastructure for each guaran° spent.

"Paraguay's record on reducing poverty and inequality was strong
over the past decade. To secure these gains and further reduce
income disparities, however, stronger implementation of NDP
priorities is needed, such as investment in education and
training, as well as an expansion of conditional cash transfer
programs. Tax reform that rebalances away from indirect taxation
and maintains low income tax rates but limits deductions could
improve progressivity and help finance these initiatives to
promote inclusive growth.

"We are grateful to the authorities and all our counterparts for
their hospitality and the open and productive dialogue."

The team met with Central Bank of Paraguay (BCP) President Carlos
Fernandez, Minister of Finance Santiago Pena, Minister of Public
Works and Communications Ramon JimÇnez, Minister of Planning JosÇ
Molinas, Minister of Labor Guillermo Sosa, Social Action Minister
HÇctor Cardenas and other senior officials, as well as
representatives from the private sector, think tanks, and the
donor community.


VENEZUELA: Discusses $1BB Debt Restructuring With Moscow
Vladimir Soldatkin at Reuters reports that Venezuela has been in
talks with Russia about its $1 billion debt restructuring, TASS
news agency quoted Venezuela's envoy to Moscow as saying.

Russia has slashed projected revenue by nearly $1 billion to
reflect expectations that Venezuela may not make timely payments
on bilateral loans, according to a document released by Russia's
Audit Chamber, Reuters notes.

As reported by The Troubled Company Reporter-Latin America,
S&P Global Ratings, on Feb. 28, 2017, affirmed its 'CCC' long-term
foreign and local currency sovereign credit ratings on the
Bolivarian Republic of Venezuela.  The outlook on both long-term
ratings remains negative.  S&P also affirmed its 'C' short-term
foreign and local currency sovereign ratings.  In addition, S&P
affirmed its 'CCC' transfer and co
nvertibility assessment on the

VENEZUELA: Journalists Board Buses to Challenge Censorship
Kejal Vyas at The Wall Street Journal reports that journalist
Laura Castillo and a group of six writers and artists in Venezuela
are fighting censorship here by delivering the news personally to
their compatriots.

Last month they started riding public buses around the capital
city and reading three-minute news broadcasts from behind a square
cardboard frame meant to evoke a television set, according to The
Wall Street Journal.  El Bus TV updates its viewers on the
country's economic and social crisis in a way other news sources
don't under President Nicolas Maduro -- a former bus driver,
incidentally, the report notes.

"We want to hit at that wall of government censorship and we
thought the bus is a medium that brings together the diverse
population we want to inform," the report quoted Ms. Castillo as

She and her colleagues launched volunteer-run El Bus TV in part to
mark a troubling anniversary, the report relays.  Ten years ago
last month, Venezuela's late strongman Hugo Chavez shut down what
was then the country's most popular private media outlet, Radio
Caracas Television, the report says.  RCTV was overtly critical of
Mr. Chavez, who blasted the media as an enemy of the people, the
report notes.

Since then, 111 other radio stations, TV networks and newspapers
in the country have had to close due to government sanctions,
according to a tally maintained by the free-speech advocacy group
Espacio Publico, the report discloses.  The government denies
accusations of censorship and says the media generates hysteria,
the report notes.  It has blocked access to numerous foreign news
websites and earlier this year took CNN en Espanol off air.

In recent years, pro-government investment groups have bought out
Venezuela's national daily papers and major private TV channels,
gutting personnel and avoiding any reports that reflect badly on
the Maduro government, the report relays.  Earlier this year, the
country's attorney general, a longtime ruling-party stalwart,
found her speeches no longer broadcast on state television after
she slammed Mr. Maduro's efforts to redraft the constitution and
brutally repress demonstrators, the report discloses.

El Bus TV has no shortage of national news to report.  Widespread
food shortages, sky-high inflation and Mr. Maduro's increasingly
authoritarian rule have spawned more than two months of almost
daily clashes between demonstrators calling for the president's
ouster and state security forces, costing more than 60 lives, the
report notes.  The Venezuelan press-workers union has documented
221 cases since March 31 of reporters being injured or robbed
covering protests, the report discloses.  In 163 of them, it said,
the alleged perpetrators were members of the police or military,
the report relays.

The government routinely closes Caracas's subway lines to
frustrate protesters, but buses privately run by driver
cooperatives still ply the city's traffic-clogged streets, the
report notes.  Passengers regularly pass images that encapsulate
the years of economic mismanagement and political unrest: families
scrounging through trash for food; long, snaking bread lines; rows
of National Guard in riot gear, the report says.

"It's like watching the movie of our lives," said Claudia Lizardo,
a 29-year-old writer working with El Bus TV.  "People hear the
news and associate it with what they see every day," he added.

On a recent day, El Bus TV delivered news on the recent winning
streak of Venezuela's under-20 national soccer team before
discussing how state-subsidized food wasn't reaching large parts
of the city, leaving people with little more than mangos to eat,
the report relays.

Amid the government crackdown on protesters, the reporters pointed
out that each tear-gas canister fired by the National Guard costs
as much as $40, more than the monthly minimum wage since the
plunge in value of the national currency, the bolivar, the report

Such critical perspectives have become harder to get as the
government takes greater control over the airwaves, the report
relays.  While social media have helped fill some of the gap,
millions of Venezuela's slum dwellers lack internet access and
can't afford data plans on their mobile phones, leaving them in
the dark about the civil unrest rocking their nation, the report

For many, time is another rare resource.  "How can I get news if
I'm on the bus four hours a day?" said Rosalba Perez, a 61-year-
old who rides the bus from her east Caracas slum to clean homes in
a wealthier part of the city, the report relays.

Ms. Castillo, El Bus TV's co-founder, emphasizes that it promotes
no political party, makes no calls to join protests and doesn't
ask passengers for money, unlike the many musicians and beggars
that hop on and off the buses, the report says.

Passengers sometimes look confused, being more used to hearing
salsa music blaring from bus speakers than staged news reports.
But the reporters say most of El Bus TV's trips so far have been
received positively, with riders applauding and shouting thanks,
the report relays.  Many bus-drivers don't charge the journalists
the 3 U.S. cents per person it costs to board, the report notes.

The El Bus TV team's low profile has helped them deliver the news
on buses in western Caracas, a ruling-party enclave where
government detractors have long been barred from marching, the
report says.

Their initiative is also growing.  After their pilot run went
viral on Twitter, El Bus TV found 50 volunteers ready to join at a
training session, the report notes.  New groups have launched in
the industrial city of Valencia and in the eastern city of Puerto
la Cruz, the report says.  Ms. Castillo said upcoming excursions
will also include health professionals to give riders tips on
nutrition as they grapple with food scarcity, the report relays.

"This is a chance to participate in a possible solution to the
problems facing our country without the radicalization," said
Oswaldo Macho, a theater actor and new recruit to El Bus TV.  "We
just want to fulfill everyone's basic right, which is to be
informed," he added.

As reported by The Troubled Company Reporter-Latin America,
S&P Global Ratings, on Feb. 28, 2017, affirmed its 'CCC' long-term
foreign and local currency sovereign credit ratings on the
Bolivarian Republic of Venezuela.  The outlook on both long-term
ratings remains negative.  S&P also affirmed its 'C' short-term
foreign and local currency sovereign ratings.  In addition, S&P
affirmed its 'CCC' transfer and convertibility assessment on the


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

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

Submissions about insolvency-related conferences are encouraged.
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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
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Magdadaro, and Peter A. Chapman, Editors.

Copyright 2017.  All rights reserved.  ISSN 1529-2746.

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