TCRLA_Public/170615.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

             Thursday, June 15, 2017, Vol. 18, No. 118


                            Headlines



A R G E N T I N A

IRSA INVERSIONES: S&P Raises CCR to 'B' on Sovereign's Upgrade


B A R B A D O S

BARBADOS: On Collision Course Over New Tax Measures With Union


B E R M U D A

BELMOND LTD: S&P Affirms 'B+' CCR; Outlook Stable


B R A Z I L

BRAZIL: Judge Sentences Ex-Rio Gov to 14 Years in Corruption Case
PETROLEO BRASILEIRO: Three Workers Die Following Explosion


C A Y M A N  I S L A N D S

BRYCO INTERNATIONAL: Commences Liquidation Proceedings
GOLDEN GRAIN: Placed Under Voluntary Wind-Up
PLATINUM PARTNERS: Creditors & Contributories to Meet on June 19
PREMIUM POINT MASTER: Creditors' Proofs of Debt Due June 26
PREMIUM POINT OFFSHORE: Creditors' Proofs of Debt Due June 26

RAINE ASSOCIATES: Creditors' Proofs of Debt Due June 26
RST INVESTMENTS: Creditors' Proofs of Debt Due July 5
SOUTH ATLANTIC: Placed Under Voluntary Wind-Up
SUMERU CAPITAL FUND: Creditors' Proofs of Debt Due July 5
SUMERU CAPITAL MASTER: Creditors' Proofs of Debt Due July 5


P A R A G U A Y

PARAGUAY: S&P Affirms 'BB/B' Sovereign Credit Ratings


P U E R T O    R I C O

INVERSIONES CESAR: Case Summary & 9 Unsecured Creditors
RFI MANAGEMENT: Hires Ashton Trevethan as Accountant
PUERTO RICO: Votes to Become 51st US State
PUERTO RICO SALES: S&P Lowers Rating on Sales Tax Bonds to 'D'


V E N E Z U E L A

VENEZUELA: Takes Control of Police in Opposition-Governed State


                            - - - - -


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A R G E N T I N A
=================


IRSA INVERSIONES: S&P Raises CCR to 'B' on Sovereign's Upgrade
--------------------------------------------------------------
S&P Global Ratings raised its corporate credit ratings on IRSA
Inversiones y Representaciones S.A. (IRSA) and on its subsidiary,
IRSA Propiedades Comerciales (IRCP), to 'B' from 'B-'.  The
outlook on the corporate credit ratings is stable.

S&P also raised the issue-level ratings on IRSA and IRCP to 'B'
from 'B-'.  The rating on IRSA's senior unsecured notes is at the
same level as the corporate credit rating because S&P believes
that investors on these notes do not face a disadvantage as
creditors of the holding company.  Although S&P believes IRSA
partly depends on cash flows from IRCP, the holding company has
also operations and assets of its own, and S&P believes that in an
event of default, creditors at the parent level would likely also
benefit from residual assets at the subsidiary level after paying
all creditors at that level.

The upgrade of IRSA and IRCP mirrors Argentina's upgrade on
April 4, 2017, and the upward revision of country risk on May 23,
2017.  The ratings on the companies were not immediately raised
after the sovereign upgrade, because S&P had to analyze IRSA and
its parent CRESUD S.A.C.I.F y A's increase in leverage to evaluate
potential changes of S&P's assessment of the group's credit
profile.  Although S&P now sees higher leverage, it believes lower
country risk and the companies' improved business conditions
mitigate this risk.


===============
B A R B A D O S
===============


BARBADOS: On Collision Course Over New Tax Measures With Union
--------------------------------------------------------------
Taxes or job cuts! That's the two options Finance Minister Chris
Sinckler tabled after the National Union of Public Workers (NUPW)
issued Government a July 1 ultimatum to scrap crippling taxes
imposed in the Budget or face industrial action, Caribbean360.com
reports.

"Make no mistake about it; those are the hard choices which we
face at this time," Minister Sinckler told online newspaper
Barbados Today, the report notes.

At issue is the significant hike in the National Social
Responsibility Levy which moved from two per cent to ten per cent,
the introduction of a two per cent levy on foreign exchange
transactions and a rise in the excise tax on gasoline and diesel,
according to Caribbean360.com.

NUPW President Akanni McDowall called on Government to reverse the
tax measures or introduce a "coping subsidy" for public servants
pending the outcome of ongoing salary negotiations, the report
relays.

The union boss argued that the tax measures would hike the already
high cost of living by 15 per cent, adding that workers who have
been subjected to a wage freeze for some time now cannot cope, the
report notes.

"The union further recognizes that the hike in the social
responsibility levy from two per cent to ten per cent will result
in across-the-board increases in the price of food, other
necessity items, and further diminish the spending capacity of its
members and the wider public . . . These measures cut at the core
of the functioning of every household in Barbados, some of which
are already under extreme pressure," the report quoted President
McDowall as saying.

However, Mr. Sinckler maintained there would be a high price to
pay, describing the union's position as "ill-advised" and
"unfortunate," the report notes.

"Indeed, lest they forget, perhaps it bears reminding that there
are a growing number of persons out there who believe that
Government should immediately and substantially reduce the size of
the public sector, especially its wages bill.  Now while that may
be coded language for some, it simply means that Government should
send home thousands of public servants from the service," Mr.
Sinckler said, notes Caribbean360.com.

"So, if the NUPW leadership is prepared to make the choice of
seeing large amounts of their membership lose their employment and
with it the capacity to earn a living, then I would definitely
consider that position to be both ill-advised and undesirable," he
warned, the report relays.

The Minister of Finance however left the door opened for talks
with the NUPW, the report notes.

Meantime, Opposition Leader Mia Mottley took Mr. Sinckler to task
for his "bizarre threat" to send public workers home, if he did
not get his way with the new taxes, the report notes.

"Public workers are not excess baggage on an overweight plane to
be shed at will," she said, adding that "the minister must stop
using Government employees as scapegoats to cover up his
incompetence," the report relays.

She suggested that greater emphasis should be placed on
eliminating wastage and cutting Government's overall spending, the
report notes.  Ms. Mottley further called for greater transparency
in awarding contracts and for Government to action matters raised
in successive reports by the Auditor General, the report adds.

As reported in the Troubled Company Reporter-Latin America on
March 7, 2017, S&P Global Ratings lowered its long-term foreign
and local currency sovereign ratings on Barbados to 'CCC+' from
'B-'.  The outlook is negative.  S&P also lowered the short-term
ratings to 'C' from 'B.'  At the same time, S&P lowered its
transfer and convertibility assessment for Barbados to 'CCC+' from
'B-'.


=============
B E R M U D A
=============


BELMOND LTD: S&P Affirms 'B+' CCR; Outlook Stable
-------------------------------------------------
S&P Global Ratings affirmed its 'B+' corporate credit rating on
Bermuda-based Belmond Ltd.  The outlook is stable.

At the same time, S&P assigned its 'BB' issue-level rating and '1'
recovery rating to Belmond's subsidiary Belmond Interfin Ltd.'s
proposed $100 million revolving credit facility due 2022 and
$600 million term loan due 2024 (consisting of a $400 million
tranche and a EUR180 million tranche).  The '1' recovery rating
reflects S&P's expectation for very high (90%-100%; rounded
estimate: 95%) recovery for lenders in the event of a default.

S&P will withdraw its ratings on the company's current senior
secured facilities when they are redeemed.

"The 'B+' corporate credit rating affirmation reflects our
expectation that Belmond will sustain our measure of lease-
adjusted debt to EBITDA in the low-5x area through 2018," said S&P
Global Ratings credit analyst Daniel Pianki.  S&P is affirming the
corporate credit rating despite the additional debt from the
proposed transaction because the existing rating and base-case
forecast already incorporated S&P's expectation for periodic
leveraging transactions that will keep its measure of leverage at
or above 5x adjusted debt to EBITDA.  Belmond has publicly stated
its intention to double its EBITDA and the number of properties in
operation by 2020 by pursuing acquisitions and leases, new trains
and cruises, additional hotel management and franchise agreements,
and organic growth.  This strategy could require capital
investment that S&P believes will keep leverage above its 5x
threshold, below which S&P would consider higher ratings, despite
the company's willingness to sell assets along the way to help
fund the growth.  Still, S&P believes Belmond's capital allocation
strategy will not result in the company sustaining S&P's measure
of leverage above its 6x downgrade threshold.

The stable rating outlook on Bermuda-based hotel company Belmond
Ltd. reflects S&P's expectation that the company will continue to
make investments and acquisitions to grow its business, resulting
in our measure of adjusted debt to EBITDA sustained at or above
5x.  S&P's base-case forecast is for leverage in the low-5x area
through 2018, and for FFO to debt in the low-teens percentage
area.

S&P could lower the rating if operating performance is materially
worse than its current expectation because of an unexpected,
substantial decline in RevPAR performance, a more aggressive
approach to shareholder returns, or a significant increase in
acquisitions and future capital commitments, resulting in EBITDA
coverage of interest expense below 2x or debt to EBITDA above 6x.

Ratings upside is contingent upon S&P's belief that the company
would sustain leverage below 5x and FFO to debt above 12% over the
longer term, incorporating possible shareholder returns and future
capital commitments not included in S&P's current base-case
forecast for leverage--including acquisitions and potential future
guarantees to secure management agreements.


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


BRAZIL: Judge Sentences Ex-Rio Gov to 14 Years in Corruption Case
-----------------------------------------------------------------
Paul Kiernan at The Wall Street Journal reports that Rio de
Janeiro state Gov. Sergio Cabral was sentenced to 14 years in
prison for corruption and money laundering, becoming one of the
most high-profile Brazilian politicians yet convicted in the
sprawling Car Wash probe.

Judge Sergio Moro found Mr. Cabral guilty of receiving around
BRL2.7 million ($816,450) in bribes and laundering some of the
proceeds, according to The Wall Street Journal.  The money had
been skimmed off an overpriced construction contract for a
refinery built by state-owned oil company Petroleo Brasileiro SA,
or Petrobras, on the outskirts of Rio, the report notes.

Mr. Cabral's attorney said he plans to appeal but declined to
specify on what grounds, the report relays.

Once considered a likely presidential candidate, Mr. Cabral rode
the commodity boom to political stardom during his 2007-14 term,
as Rio experienced a fleeting renaissance that culminated in its
winning bid for the 2016 Olympics, the report notes.

With state coffers flush with cash from rising oil prices, Mr.
Cabral attacked the city's notorious crime problem by implementing
a community policing program in favelas, or slums, long controlled
by drug gangs, the report relays.  He propped up employment by
drastically expanding the state's payroll and spent billions of
dollars on infrastructure projects, such as a new Metro line,
whose costs, prosecutors say, have been inflated by corruption,
the report discloses.

As a result, Rio state is now in the throes of an epic fiscal
crisis, unable to pay the salaries or pensions, the report notes.
After falling in 2012 to the lowest level in decades, violence has
come roaring back, with more than 5,000 murders last year and 920
killings by police officers, in a state home to some 16.6 million
people, the report relays.

"The failed situation of Rio de Janeiro state cannot be ignored,
as the suffering of the population and civil servants, which
despite being the result of many factors, also has its origins in
the systematic graft by the ex-governor and his associates," Judge
Moro wrote in his ruling, the report notes.

The case is only the first to be ruled upon against Mr. Cabral,
the son of a well-known music critic who rose from modest origins
in Rio de Janeiro's working-class north side, the report
discloses.

In addition to Car Wash, Mr. Cabral is the target of parallel
investigations into graft from Rio's state health-care system,
infrastructure projects and public works ahead of the 2014 World
Cup and 2016 Olympics, the report relays.

Altogether, prosecutors allege the ex-governor diverted more than
$100 million from public coffers, stashing the proceeds in
offshore bank accounts and laundering much of the money by
purchasing luxury goods such as diamonds, the report notes.

In March, the Car Wash task force in Rio de Janeiro repatriated
BRL250 million from foreign bank accounts allegedly controlled by
Mr. Cabral's "criminal organization," prosecutors said, the report
relays.  The money was handed over to the state government, which
used it to pay the overdue salaries of 147,342 employees, the
report notes.

"That represents just part of the money that has been apprehended,
with still more believed to be hidden," prosecutor Leonardo
Cardoso de Freitas said at the time, the report notes.  "These
numbers give an idea of how big the cost of corruption is in
Brazil," he added.

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.


PETROLEO BRASILEIRO: Three Workers Die Following Explosion
----------------------------------------------------------
Paul Kiernan at The Wall Street Journal reports that three workers
at an offshore drill rig contracted by Brazilian state-run oil
company Petroleo Brasileiro SA died of burn injuries following an
explosion, raising concerns that the company's ongoing cost cuts
are impacting safety.

Petrobras, as the firm is known, said the explosion happened in
the boiler room of a drill ship operated by Odebrecht Oleo e Gas
in the Marlim field off Brazil's southeast coast, the report
relays.  While the accident was contained, Petrobras said that
three workers suffered full-body burns, according to The Wall
Street Journal.

Since then all three have died: 33-year-old Eduardo Aragao de
Lima, 29-year-old Ericson Nascimento de Freitas, and 44-year-old
Jorge Luiz Damiao, the company said in an update, the report
notes.

The accident was Petrobras' worst since an explosion on a floating
production, storage and offloading vessel, or FPSO, operated by
Norway's BW Offshore left nine workers dead and 26 injured in
2015, the report discloses.

Petrobras' unions seized on the incident as evidence that layoffs
and cost cuts carried out in recent years, as the company
struggles to pay down its giant debt load, have weighed on safety,
the report relays.

"This type of accident has its origins in the workforce reduction
that Petrobras has been implementing," said Paulo Neves, a
director at the national Oilworkers' Federation, or FUP, the
report notes.

Petrobras didn't provide information on the causes of the
explosion, saying only that a commission has been formed to
investigate, the report relays.

Chief Executive Pedro Parente, who took the helm of the company a
year ago, has repeatedly said he aims to improve Petrobras' safety
record, the report adds.

As reported in the Troubled Company Reporter-Latin America on
May 18, Fitch Ratings expects to assign a 'BB(EXP)' rating to
Petroleo Brasileiro S.A.'s proposed USD4 billion to USD6 billion
notes reopening. The reopening is part of Petrobras Global Finance
B.V. (PGF) 2022 and 2027 notes and will be unconditionally and
irrevocably guaranteed by Petrobras. The company expects to use
the proceeds to refinance existing debt and for general corporate
purposes.


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


BRYCO INTERNATIONAL: Commences Liquidation Proceedings
------------------------------------------------------
At an extraordinary meeting held on April 28, 2017, the members of
Bryco International Insurance Company, Ltd. resolved to
voluntarily liquidate the company's business.

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

Kieran Mehigan is the company's liquidator.


GOLDEN GRAIN: Placed Under Voluntary Wind-Up
--------------------------------------------
The sole shareholder of Golden Grain (Operators) Ltd., on Dec. 5,
2017, passed a resolution 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 Trust & Corporate Services Ltd.
          Avalon Ltd.
          Reference: GL
          Landmark Square, 1st Floor, 64 Earth Close
          P.O. Box 715, Grand Cayman KY1-1107
          Cayman Islands
          Telephone: (+1) 345 769 4422
          Facsimile: (+1) 345 769 9351


PLATINUM PARTNERS: Creditors & Contributories to Meet on June 19
----------------------------------------------------------------
The creditors and contributories of Platinum Partners Value
Arbitrage Fund (International) Limited will hold their meeting on
June 19, 2017, at 10:00 a.m., to receive an update on the progress
of the liquidation.

The company's liquidator is:

          Margot Macinnis
          Borrelli Walsh (Cayman) Limited
          Harbour Place, Ground Floor
          103 South Church Street
          George Town
          P.O. Box 30847 Grand Cayman KY1-1204
          Cayman Islands


PREMIUM POINT MASTER: Creditors' Proofs of Debt Due June 26
-----------------------------------------------------------
The creditors of Premium Point Master Mortgage Credit Fund, Ltd.
are required to file their proofs of debt by June 26, 2017, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on May 18, 2017.

The company's liquidator is:

          Jeffrey Stower
          P.O. Box 493 Grand Cayman KY1-1106
          Cayman Islands
          c/o Gareth Dixon
          Telephone: +1 (345) 815-2622/ +1 (345)-949-4800
          Facsimile: +1 (345) 949-7164


PREMIUM POINT OFFSHORE: Creditors' Proofs of Debt Due June 26
-------------------------------------------------------------
The creditors of Premium Point Offshore Mortgage Credit Fund, Ltd.
are required to file their proofs of debt by June 26, 2017, to be
included in the company's dividend distribution.

The company commenced liquidation proceedings on May 18, 2017.

The company's liquidator is:

          Jeffrey Stower
          P.O. Box 493 Grand Cayman KY1-1106
          Cayman Islands
          c/o Gareth Dixon
          Telephone: +1 (345) 815-2622/ +1 (345)-949-4800
          Facsimile: +1 (345) 949-7164


RAINE ASSOCIATES: Creditors' Proofs of Debt Due June 26
-------------------------------------------------------
The creditors of Raine Associates SFI, Ltd. are required to file
their proofs of debt by June 26, 2017, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on May 12, 2017.

The company's liquidator is:

          Alfred Chianese
          Floor 4, Willow House, Cricket Square
          Grand Cayman KY1-9010
          Cayman Islands
          Telephone: (345) 949-2648
          Facsimile: (345) 949-8613


RST INVESTMENTS: Creditors' Proofs of Debt Due July 5
-----------------------------------------------------
The creditors of RST Investments Ltd. are required to file their
proofs of debt by July 5, 2017, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on May 22, 2017.

The company's liquidator is:

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


SOUTH ATLANTIC: Placed Under Voluntary Wind-Up
----------------------------------------------
The sole shareholder of South Atlantic Container Lines Ltd, on
Dec. 5, 2017, passed a resolution 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 Trust & Corporate Services Ltd.
          Avalon Ltd.
          Reference: GL
          Landmark Square, 1st Floor
          64 Earth Close
          P.O. Box 715, Grand Cayman KY1-1107
          Cayman Islands
          Telephone: (+1) 345 769 4422
          Facsimile: (+1) 345 769 9351


SUMERU CAPITAL FUND: Creditors' Proofs of Debt Due July 5
---------------------------------------------------------
The creditors of Sumeru Capital Fund Limited are required to file
their proofs of debt by July 5, 2017, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on May 23, 2017.

The company's liquidator is:

          DMS Corporate Services Ltd.
          c/o Nicola Cowan
          dms House, 2nd Floor,
          P.O. Box 1344, Grand Cayman KY1-1108
          Cayman Islands
          Telephone: (345) 946 7665
          Facsimile: (345) 949 2877


SUMERU CAPITAL MASTER: Creditors' Proofs of Debt Due July 5
-----------------------------------------------------------
The creditors of Sumeru Capital Master Fund Limited are required
to file their proofs of debt by July 5, 2017, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on May 23, 2017.

The company's liquidator is:

          DMS Corporate Services Ltd.
          c/o Nicola Cowan
          dms House, 2nd Floor
          P.O. Box 1344 Grand Cayman KY1-1108
          Telephone: (345) 946 7665
          Facsimile: (345) 949 2877



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


PARAGUAY: S&P Affirms 'BB/B' Sovereign Credit Ratings
-----------------------------------------------------
S&P Global Ratings affirmed its 'BB/B' long- and short-term
sovereign credit ratings on the Republic of Paraguay.  The outlook
remains stable.  At the same time, S&P affirmed its 'BB+' transfer
and convertibility assessment on Paraguay.

                              RATIONALE

Since S&P's last rating action on March 17, 2017, when it affirmed
the ratings, political disputes and episodes of domestic violence
arose following the proposed constitutional amendment that would
allow a president to run for reelection (currently prohibited by
the constitution).  In S&P's view, such episodes are evidence of
the government's ongoing policy implementation challenges and the
differences across political parties in Paraguay, which reduce
predictability.

S&P believes that Paraguay continues to face institutional
challenges that are not likely to be resolved in the near term.
S&P expects President Horacio Cartes to continue to face
opposition both from outside and within his own party, also
slowing reform progress.  Although President Cartes has managed to
make advances in transparency and in the economic field, anti-
Cartes factions within the president's own party reflect the
president's position as an outsider from the traditional
leadership.  S&P expects policy choices to continue to support
sustainable public finances and timely debt service, as evidenced
by the veto of the 2017 budget, which had the effect of
reinstating the 2016 budget for the current fiscal year.  The
administration has presented a budget consistent with the Fiscal
Responsibility Law (FRL), but Congress amended the proposed budget
such that it didn't comply with the law.

Under S&P's base-line projections, it expects GDP growth to be
around 4% in the next couple of years.  S&P expects strong results
from agriculture and ongoing investments of the private sector to
continue driving growth.  According to recent central bank data,
GDP grew 6.6% in the first quarter of 2017.  That reflects the
ongoing strong performance of construction, the binational sector,
manufacturing and mining, and services, similar to 2016.  S&P
believes that the government's track record of prudent
macroeconomic policy will continue to support healthy growth,
although at lower-than-historical levels for a country with an
expected income per capita of US$4,398 for 2017-2020.  The real
GDP per capita growth rate should average 2% over the next three
years.

Paraguay's economy has been historically dominated by the
agricultural sector, which in 2016 accounted for 19% of GDP,
therefore exposing the country to some volatility.  However, the
services sector also plays an import role in the economy,
representing 44% of GDP last year, thus offsetting potentially
negative effects from concentration in a single industry.  Oil
seeds and soybeans are the main product exported from Paraguay.
They accounted for close to 30% of its exports in 2016, while
vegetable oil and fats represented 21% and bovine meat products
18%. Paraguay's key export destinations are Mercosur (31% of total
exports in 2016, including energy, and whose most important
markets are Brazil and Argentina), the EU (19%), and Russia (10%).

Paraguay's current account registered a surplus of 1.7% of GDP in
2016, driven by a stronger trade balance (5.1% of GDP) in addition
to a lower deficit in the services sector.  The trade balance
includes exports made by energy companies Itaipu Binational and
Yacyrete Binational.  The expected gradual recovery from recession
of Paraguay's key economic partners will slowly increase exports
amid still-low international commodities prices; meanwhile,
greater investments in the country will draw increased volumes of
imports.

S&P expects the current account surplus to be 1.3% of GDP in 2017.
However, by 2020, it should be converted to a deficit close to 3%
of GDP.  As S&P expects Paraguay to continue accessing
international markets, S&P's base case assumes the country will
become a net external debtor by 2019 and average narrow net
external debt will be 7.2% of current account receipts (CAR)
between 2019 and 2020.  Paraguay's external liquidity remained 82%
of CAR plus usable reserves in 2016.  S&P expects these financing
needs to average 84% during 2017-2020--only slightly higher than
the average over the past decade.

S&P do not expect changes to the current tax structure in the next
two to three years.  Under this scenario, revenues should remain
around 18% of GDP while expenses will continue to marginally
increase, partly reflecting the rigidities in the government
budget.  S&P expects fiscal deficits to remain broadly in line
with the FRL, averaging 1.3% of GDP between 2017 and 2020,
although in S&P's view, the FRL has somewhat limited scope to
control fiscal outcomes given that it only addresses Paraguay's
budget approval process.

In 2016, the central government deficit was 1.4% of GDP, just
below the FRL's limit.  This benefited from the government's
containment of the public wage bill, which allowed for higher
capital spending.  For 2017, S&P expects that the fiscal outturn
will be somewhat similar to that of 2016 and that the executive
branch veto of the 2017 budget demonstrated President Cartes'
commitment to comply with the FRL.  Over the next three years, S&P
expects the average change in general government debt to reach
1.8% of GDP.

Despite increased infrastructure spending, S&P believes that
infrastructure needs will continue to limit the government's
fiscal flexibility.  Addressing these needs remains a significant
part of President Cartes' agenda.  To that end, the government's
strategy includes boosting infrastructure via public-private
partnerships (PPPs).  The first two public initiatives approved
under this framework are the extension of two highways and the
modernization of Asuncion's international airport.  However,
execution of these first projects was delayed, in part reflecting
the government's limited experience in the implementation of PPPs.
The government has now said it expects to complete these projects
over the next three years.

"We expect moderate fiscal deficits over the next three years will
continue to increase the government's debt burden, though we
believe that debt will remain low.  By year-end 2017, we
anticipate that net general government debt will reach 12% of GDP
and will continue to rise to 15.1% by 2020, while general
government interest payments will average 4.5% of general
government revenues between 2017-2020.  In recent years, a growing
portion of the government's financing needs has been covered by
bond issuances, including the US$500 million issuance in
international capital markets in March 2017 to finance
infrastructure projects and capital expenditures, as well as to
meet its debt service needs.  The government's growing issuance of
bonds has also increased its exposure to exchange-rate movements,
given that about 78% of the public sector's debt stock is
denominated in foreign currency (though the government does
receive some dollar-denominated revenues)," S&P said.

Since the adoption of the inflation-targeting regime, Paraguay has
been able to keep inflation in line with the central bank target
and has been slowly strengthening its supervision of the financial
system.  S&P expects inflation to average 4% through 2020,
suggesting a credible policy commitment and well-anchored
inflation expectations.

However, these strengths are weighed against what S&P views as
still-high levels of dollarization in the economy and lack of a
track record in managing a banking crisis, particularly stemming
from dollarization in the financial system.  The Paraguayan
economy remains highly dollarized, continuing to limit monetary
policy.  Foreign currency deposits represented 47% of bank
deposits as of April 2017, and S&P's base case for this year
assumes this could be above 50%, especially in a context of a
record harvest.  The dollarization of the Paraguayan economy is
tightly linked to its agricultural economic base and that loans to
this sector are mainly denominated in foreign currency.  At the
same time, such dollarization levels expose banks' balance sheets
to sudden spikes in the Paraguayan guarani, and S&P would still
have to test the central bank's ability to manage a potential
banking crisis.

                               OUTLOOK

The stable outlook reflects S&P's expectations that the
government's structural challenges and implementation capacity
limitations stemming from political divisions across parties will
continue to restrain policymaking effectiveness, and that
Paraguay's external profile will weaken on rising external
indebtedness amid still-low commodity prices.  S&P expects these
factors to be balanced against Paraguay's resilient economic
growth, which is likely to remain buoyant over the next three
years.  S&P also expects moderate deficits and an increasing,
though still low, debt burden.

S&P could raise its ratings on Paraguay over the next year if
policymaking effectiveness strengthens; if external risks decline
due to much greater diversification of the economy that reduces
the vulnerability to low commodity prices; and if, contrary to
S&P's base case, Paraguay's external debt burden stabilizes.
Additionally, S&P could raise its ratings on Paraguay if monetary
policy strengthens such that dollarization levels in the economy
sustainably decline and if S&P has more evidence on the central
bank's ability to address systemic risks, should they appear.

On the other hand, S&P could lower the ratings if higher-than-
expected fiscal deficits or stronger currency depreciation lead to
larger-than-expected changes in general government debt over the
next year and if S&P sees growing contingent liability risks,
including the financial sector and potentially from PPPs, that
lead S&P to worsen its assessment of Paraguay's debt risks.  S&P
could also lower its ratings if, in its view, Paraguay's political
institutions weaken in such a way that would diminish its
capability and willingness to maintain timely debt service, or if
S&P perceives there to be a considerable risk of breakdown of
political institutions.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable.  At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee by
the primary analyst had been distributed in a timely manner and
was sufficient for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee agreed that key rating factors were unchanged.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion.  The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook.  The weighting of all rating
factors is described in the methodology used in this rating
action.

RATINGS LIST

Ratings Affirmed

Paraguay (Republic of)
Sovereign Credit Rating                BB/Stable/B
Transfer & Convertibility Assessment   BB+
Senior Unsecured                       BB


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


INVERSIONES CESAR: Case Summary & 9 Unsecured Creditors
-------------------------------------------------------
Debtor: Inversiones Cesar Castillo Inc.
        PO Box 195536
        San Juan, PR 00919

Business Description: The Debtor listed its business as a
                      single asset real estate (as defined in 11
                      U.S.C. Section 101(51B)).  The Debtor owns
                      a fee simple interest in a 62,297 sq ft
                      commercial office & warehouse building
                      located at No. 361 Angel Bounomo St.,
                      Tres Monjitas Industrial Park valued at
                      $3.5 million.

Chapter 11 Petition Date: June 12, 2017

Case No.: 17-04202

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

Debtor's Counsel: Wigberto Lugo Mender, Esq.
                  LUGO MENDER GROUP, LLC
                  Centro Internacional De Mercadeo
                  100 Carr 165 Suite 501
                  Guaynabo, PR 00968
                  Tel: 787 707-0404
                  Email: wlugo@lugomender.com

Total Assets: $4.33 million

Total Liabilities: $10.22 million

The petition was signed by Cesar Castillo Gonzalez, president.

The Debtor's list of nine unsecured creditors is available for
free at http://bankrupt.com/misc/prb17-04202.pdf


RFI MANAGEMENT: Hires Ashton Trevethan as Accountant
----------------------------------------------------
RFI Management, Inc. seeks authorization from the U.S. Bankruptcy
Court for the Middle District of North Carolina to employ Scott
Ashton and Ashton Trevethan & Company as accountant, nunc pro tunc
to May 22, 2017.

The Debtor requires Ashton Trevethan to:

   (a) prepare the 2016 income tax returns;

   (b) prepare profit and loss statements, balance sheets and
       projections of  cash flows;

   (c) prepare and review financial information included in
       Debtor's Plan; and

   (d) provide general accounting needs of Debtor as they arise.

Ashton Trevethan will be paid at an hourly rate of $200 on
services rendered.

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

Scott Ashton, managing partner of Ashton Trevethan, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtor and its estate.

Ashton Trevethan can be reached at:

       Scott Ashton, CPA
       ASHTON TREVETHAN & COMPANY
       3622 Lyckan Pkway.Suite 2003
       Durham, NC 27707
       Tel: (919) 490-1879
       Fax: (919) 490-3172
       E-mail: scott@atccpas.com

                    About RFI Management

RFI Management, Inc., works as a subcontractor installing a full
range of flooring products and wall materials, principally in
Hotel Properties across the United States and in Puerto Rico.

RFI Management filed a Chapter 11 bankruptcy petition (Bankr.
M.D.N.C. Case No. 17-80247) on March 29, 2017.  Edward Rosa,
President, signed the petition.  At the time of filing, the Debtor
estimated assets and liabilities between $100,000 and $500,000.

James C. White, Esq. and Michelle M. Walker, Esq., at Parry
Tyndall White, serve as counsel to the Debtor.  Padgett Business
Services of NC is the Debtor's accountant.

No official committee of unsecured creditors has been appointed in
the Chapter 11 case.


PUERTO RICO: Votes to Become 51st US State
------------------------------------------
Caribbean360.com reports that Puerto Rico's Governor Ricardo
Rossello disclosed that the US island territory has overwhelmingly
chosen statehood in a nonbinding referendum held June 11 amid a
deep economic crisis that has driven hundreds of thousands of its
citizens to the US mainland.

According to preliminary results, nearly half a million votes were
cast for statehood, more than 7,600 for free
association/independence and nearly 6,700 for retaining the
current territorial status, Caribbean360.com notes.

The participation rate was just 23 percent with roughly 2.26
million registered voters, prompting opponents to question the
validity of a vote that several parties had boycotted, according
to Caribbean360.com.

The report relays that Mr. Rossello was nevertheless upbeat in
announcing the result.

"From today going forward, the federal government will no longer
be able to ignore the voice of the majority of the American
citizens in Puerto Rico," the report quoted Mr. Rossello as
saying.  "It would be highly contradictory for Washington to
demand democracy in other parts of the world, and not respond to
the legitimate right to self-determination that was exercised
today in the American territory of Puerto Rico."

The US Congress, however, has the final say on any changes that
may be made to the island's political status, notes the report.

The governor nevertheless vowed to push ahead with his
administration's quest for statehood, which was his top campaign
promise. He said he would create a commission to ensure that
Congress validate the referendum's results, the report relays.

"In any democracy, the expressed will of the majority that
participates in the electoral processes always prevails," he said,
reports Caribbean360.com. "Puerto Rico voted for statehood."

The referendum coincided with the 100th anniversary of the United
States granting US citizenship to Puerto Ricans, although they
cannot vote in presidential elections and have only one
congressional representative with limited voting powers, the
report notes.

It is widely thought that the island's territorial status has
contributed to its 10-year economic recession, which has seen
nearly half a million Puerto Ricans flee to the US mainland and is
said to have been largely sparked by decades of heavy borrowing
and the elimination of federal tax incentives, the report relays.

Although exempt from US federal income tax, Puerto Rico still pays
Social Security, Medicare and local taxes and receives less
federal funding than US states, the report discloses.

The island's 3.4 million people struggle with a 12 percent
unemployment rate and have been hit with new taxes and higher
utility bills, the report relays.  Food is 22 percent more
expensive than that on the US mainland and public services are 64
percent costlier, the report notes.

Opponents of statehood are nevertheless concerned that the island
will lose its cultural identity and warn that Puerto Rico will
struggle even more financially because it will be forced to pay
millions of dollars in federal taxes, the report adds.

                           About Puerto Rico

Puerto Rico is a self-governing commonwealth in association with
the United States. The chief of state is the President of the
United States of America. The head of government is an elected
Governor. There are two legislative chambers: the House of
Representatives, 51 seats, and the Senate, 27 seats. The
governor-elect is Ricardo Antonio Ricky Rossello Nevares,
the son of former governor Pedro Rossello.

In 2016, the U.S. Congress passed PROMESA, which, among other
things, created the Financial Oversight and Management Board and
imposed an automatic stay on creditor lawsuits against the
government, which expired May 1, 2017.

The members of the oversight board are: (i) Andrew G. Biggs, (ii)
Jose B. Carrion III, (iii) Carlos M. Garcia, (iv) Arthur J.
Gonzalez, (v) Jose R. Gonzalez, (vi) Ana. J. Matosantos, and
(vii) David A. Skeel Jr.

On May 3, 2017, the Commonwealth of Puerto Rico filed a petition
for relief under Title III of the Puerto Rico Oversight,
Management, and Economic Stability Act ("PROMESA"). The case is
pending in the United States District Court for the District of
Puerto Rico under case number 17-cv-01578. A copy of Puerto
Rico's PROMESA petition is available at

          http://bankrupt.com/misc/17-01578-00001.pdf

On May 5, 2017, the Puerto Rico Sales Tax Financing Corporation
(COFINA) commenced a case under Title III of PROMESA (D.P.R. Case
No. 17-01599). Joint administration has been sought for the
Title III cases.

On May 21, 2017, two more agencies Employees Retirement System
of the Government of the Commonwealth of Puerto Rico and Puerto
Rico Highways and Transportation Authority (Case Nos. 17-01685 and
17-01686) commenced Title III cases.

U.S. Chief Justice John Roberts has named U.S. District Judge
Laura Taylor Swain to preside over the Title III cases.

The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets as municipal investment
banker, and Ernst & Young, as financial advisor.

Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose LLP; and Hermann D. Bauer, Esq.,
at O'Neill & Borges LLC are onboard as attorneys.

Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at:

           https://cases.primeclerk.com/puertorico

Jones Day is serving as counsel to certain ERS bondholders.

Paul Weiss is counsel to the Ad Hoc Group of Puerto Rico General
Obligation Bondholders.


PUERTO RICO SALES: S&P Lowers Rating on Sales Tax Bonds to 'D'
--------------------------------------------------------------
S&P Global Ratings has lowered its rating on Puerto Rico Sales Tax
Financing Corp.'s (COFINA) subordinated sales tax bonds to 'D'
from 'CC' on nondisbursement by the trustee of scheduled monthly
interest payments due June 1, 2017, in compliance with an order of
the U.S. District Court for the District of Puerto Rico.  On
May 30, the court ordered the trustee to interplead future
payments of principal and interest on both the senior and
subordinated COFINA sales tax bonds by holding those funds in
their existing accounts until a final order of the court has been
entered directing the timing and manner of disbursement of funds.
At this time, the court's order has only affected the disbursement
of interest payments on the COFINA sales tax bonds that require
current monthly interest payments; principal payments on certain
of the COFINA sales tax bonds are due Aug. 1, 2017.

"We understand that the trustee holds funds sufficient to make
debt service payments through at least Aug. 1, 2017, on both the
senior and subordinated sales tax bonds," said S&P Global Ratings
credit analyst David Hitchcock.  "However, due to disputes between
senior and subordinate bondholders regarding the application of
funds held by the trustee and a dispute between the trustee and
COFINA as to whether an event of default has occurred, the court
has stayed all claims to the funds pending a further order of the
court," Mr. Hitchcock added.

An acceleration, if determined by the court to have occurred
and/or permitted by the court under applicable law, could
potentially affect relative recovery between senior and
subordinated bondholders.  All parties claiming a right to the
disputed funds are required to assert their rights to the funds in
the court proceeding.


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


VENEZUELA: Takes Control of Police in Opposition-Governed State
---------------------------------------------------------------
Caribbean360.com reports that Venezuela's interior ministry has
seized control of the police force in the opposition-controlled
state of Miranda.

The ministry accused Miranda's police of human rights violations
and involvement in criminal networks, according to a BBC News
report, the report notes.

The state, which has been governed by Opposition Leader Henrique
Capriles since 2008, has seen some of the biggest protests against
the government of President Nicolas Maduro, according to
Caribbean360.com.

The report notes Mr. Capriles, an attorney by profession, said the
ministry's intervention was a political attack on the state.

The 44-year-old said the interior ministry was now in charge of
all police activities there, the report relays.

"It's clear they'll try to use the police against the people," he
said, and urged the force to disobey any orders that violated the
constitution, the report says.

The report discloses that Mr. Capriles has kept to the high road
during most of his political career, but of late, as once-
prosperous Venezuela sinks deeper into poverty, food insecurity,
and social and political chaos, he has adopted a more radical
stance.

Mr. Capriles has accused Maduro and his officials of being
"corrupt narcos," of "overthrowing democracy," of promoting riots
and encouraging looting in his state's capital, Los Teques, the
report notes.

Mr. Capriles has also described Maduro as "abhorred" by
Venezuelans for what he described as "paramilitary" assaults on
peaceful protesters, the report relays.

On April 7, the nation's comptroller general disqualified Mr.
Capriles from running for any public office until 2032, alleging,
without offering proof, that he misused public funds as governor,
the report notes.

The report says that Mr. Capriles denied the charges, saying
furthermore that his disqualification went against laws that say
only the Supreme Court can make such a judgment against a sitting
governor.

Given widespread discontent with the Maduro regime, Mr. Capriles
was thought to stand a good chance of beating Maduro, a former bus
driver, in next year's presidential election, the report relays.

The report notes that Mr. Capriles' disqualification, combined
with public reaction to a brief but ill-advised move by the
Supreme Court to shift powers of the National Assembly to Maduro,
set off massive protest marches across Venezuela.

Clashes between marchers and government forces using water cannon,
tear gas and rubber bullets has left at least sixty dead, hundreds
injured, and an unknown number arrested, the report relays.

The government and the opposition continue to blame each other for
the deaths and for alleged human rights abuses, the report adds.

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
sovereign.



                            ***********


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

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

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Send announcements to conferences@bankrupt.com


                            ***********


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

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

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000 or Joseph Cardillo at
856-381-8268.


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