TCRLA_Public/170721.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

               Friday, July 21, 2017, Vol. 18, No. 144



1822 RAICES: Moody's Assigns B-bf Global Scale Bond Fund Rating


VERT COMPANHIA: Moody's Rates Agribusiness Certs. '(P)Ba1'

C A Y M A N  I S L A N D S

CARDINAL HOLDINGS: Moody's Assigns B2 CFR, Outlook Stable
MILLESIME MASTER: Appoints Joint Official Liquidators



D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: S & Ls Push to Become Commercial Banks
DOMINICAN REPUBLIC: Eyes Neighbors as Export Markets Slump


JAMAICA: Approves $715MM Withdrawal From CDF for Bauxite Institute


MEXICO: Anticorruption Efforts Stall
MINERA FRISCO: Moody's Corrects March 21 Release


PERU: Refinery to Rely on Imported Crude Oil

P U E R T O    R I C O

AES PUERTO RICO: Moody's Cuts Sr. Secured Rating to Caa1
SHORT BARK: U.S. Trustee Forms 7-Member Committee

                            - - - - -


1822 RAICES: Moody's Assigns B-bf Global Scale Bond Fund Rating
Moody's Latin America Agente de Calificacion de Riesgo has
assigned bond fund ratings to 1822 Raices Dolares Plus FCI (the
Fund), a new bond fund managed by Provinfondos SGFCI SA. The
ratings assigned are:

- Global scale bond fund rating: B-bf

- National scale bond fund rating:


"The B-bf global scale bond fund rating is based on Moody's
expectations that 1822 Raices Dolares Plus will have a mid-to-high
single B credit profile supported by investments in Argentinean
fixed-income securities, including local treasuries and corporate
bonds. All investments will be denominated in US dollars. The Fund
may also invest in sovereign and sub-sovereign bonds," said
Moody's lead analyst Carlos de Nevares. The Fund will seek to
provide medium volatile returns in dollars, while preserving
capital. 1822 Raices Dolares Plus' average duration will not
exceed 2 years. The national scale rating reflects a
national scale mapping consistent for a Fund with a B global scale
credit profile.

The rating agency noted that 1822 Raices Dolares Plus is a new
Fund with no prior track record, but is managed by an experienced
manager. Moody's analysis was performed on a model portfolio
provided by the fund sponsor. The rating agency expects the Fund
to be managed in line with the model portfolio; however, if the
Fund's invested portfolio deviates materially from the model
portfolio, the Fund's ratings could change.

Provinfondos is a large Argentenian mutual fund manager. It is a
wholly-owned subsidiary of Banco Provincia. As of June 2017,
Provinfondos had assets under management of ARS 12.2 billion (USD
717 million).

The principal methodology used in this rating was Moody's Bond
Fund Rating Methodology published in May 2013.


VERT COMPANHIA: Moody's Rates Agribusiness Certs. '(P)Ba1'
Moody's America Latina has assigned provisional ratings of (P) Ba1
(sf) (global scale, local currency) and (P) (sf) (national
scale) to the first series of the 6th issuance of agribusiness
certificates (certificados de recebiveis do agronegocio, or Senior
CRA) to be issued by Vert Companhia Securitizadora (Vert, not
rated). The CRA will be backed by agricultural production
financial notes (cedulas de produto rural financeira, or CPR
Financeiras) and agribusiness receivables certificates
(certificados de direitos creditorios do agronegocio, or CDCAs)
issued by agricultural producers and distributers, respectively.
The transaction will be sponsored by Nufarm Industria Quimica e
Farmaceutica S.A. (Nufarm Brasil, not rated), a subsidiary of
Nufarm Limited (Nufarm, Ba3). Euler Hermes SA (Euler Hermes, Aa3)
will provide a credit insurance policy supporting the receivables
backing the rated securities.

Issuer: Vert Companhia Securitizadora

  First series, 6th issuance -- (P) Ba1 (sf) (global scale, local
  currency) / (P) (sf) (national scale)

The provisional ratings address the structure and characteristics
of the transaction based on the information provided to Moody's as
of July 18, 2017. Certain issues relating to this transaction have
yet to be finalized. Upon conclusive review of all documents and
legal information as well as any subsequent changes in
information, Moody's will endeavor to assign definitive ratings to
this transaction. If any assumptions or factors considered by
Moody's in assigning the provisional ratings change, Moody's could
change the ratings assigned to the Senior CRA.


The transaction is a 4-year revolving securitization program to
provide financing to agricultural producers and distributors of
agricultural inputs in order to acquire: (i) defensives and other
products sold by Nufarm Brasil and (ii) other agricultural inputs
sold by other preapproved suppliers. The transaction will be
backed by either (i) CPR Financeiras, which are notes issued by
the agricultural producers, as obligors, acknowledging its
obligation to pay a specified amount related to a specific
quantity of produce or (ii) CDCAs, certificates issued by the
distributors, as obligors, which will be backed by promissory

The provisional ratings on the Senior CRA are based on the
following factors, including:

-- Credit Insurance Policy. The underlying receivables will
benefit from a credit insurance policy provided by Euler Hermes,
that will cover credit losses in excess of the initial 15%
subordination. The ratings of the Senior CRA are primarily based
on Euler Hermes's ability and willingness to make payments under
the insurance policy, with a maximum indemnification amount equal
to the outstanding principal and interest of the Senior CRA,
subject to an estimated limit of BRL 350 million for the first

-- Credit enhancement. The Senior CRA will benefit from 15%
initial subordination provided through: (i) the Mezzanine CRA
representing 10% of the issuance amount and (ii) the Subordinated
CRA representing 5% of the capital structure. The available
subordination will absorb the first 15% of losses under the
transaction. The transaction will have an overcollateralization
trigger which stop the acquisition of new receivables in case the
Senior CRA represents more than 85% of assets, unless Nufarm
Brasil, as the sole Subordinate CRA Investor, subscribe additional
CRA to maintain the minimum overcollateralization level.

-- The legal final maturity of the CRA will occur in March 2022,
which provides sufficient time to receive any outstanding payments
on insurance claims. Indemnification payments from the insurance
company can occur up to 44 business days after the defaulted
credits maturity date.

-- The formalization of the underlying agribusiness receivables
will be verified by Luchesi Advogados, who will provide a legal
opinion in respect to each individual receivable addressing its
existence, validity and effectiveness. This feature reduces the
risk related to incomplete formalization of the assets that could
lead to a challenge by the insurance provider. Also, Nufam Brasil,
as administrative agent, will be the ultimately responsible for
the appropriate formalization of the underlying CPR Financeiras
and CDCAs (except for third party fraudulent acts) and for other
operational obligations under the insurance policy.

-- Nufarm Brasil will be responsible for providing the insurance
company with monitoring reports about the performance of the
obligors. The transaction will benefit from a put option on
defaulted receivables against Nufarm Brasil only if the insurance
company disputes the claim due to: (i) Nufarm Brasil's failure to
deliver monitoring reports, (ii) incorrect formalization of
receivables, and (iii) misrepresentation of obligor's information
and other documents provided to the insurance company. In case the
administrative agent is unable to perform its monitoring
obligations, the documents allow for a third party to be
contracted as a replacement administrative agent. (For additional
information, see the "Put Option Against Nufarm Brasil" section in
the pre-sale report)

-- Interest rate mismatch risk. The receivables will be purchased
at a fixed discount rate and the CRA will be indexed to the CDI
rate (interbank deposit rate). This risk will be mitigated through
interest rate options negotiated at B3 S.A. - Brasil, Bolsa,
Balcao. (B3 S.A., Ba1). The interest rate options will cover the
period from the acquisition date until the receivables' maturity
date. The senior CRA are subject to a residual interest rate risk
during the 44 business days period of the insurance
indemnification payment, if an increase in the CDI rate causes the
claim to exceed the maximum indemnification amount. Moody's
considers this residual risk consistent with the ratings assigned
to the Senior CRA.

-- Reserve fund for CRA expenses. At closing, an expense fund
will be funded from issuance proceeds with sufficient funds to
cover all the initial and expected transaction expenses plus a BRL
100,000 excess for extraordinary expenses, which may be increased
up to the equivalent of the amount of Subordinated CRA in case of
underlying assets' defaults.

-- Segregated assets. The CRA benefits from a fiduciary regime
(regime fiduciario) whereby the assets backing the CRA will be
segregated. These segregated assets are destined only for payments
on the CRA and payment of certain fees and expenses, and will be
segregated from all other assets on the issuer's balance sheet.
However, the transaction is subject to residual legal risk because
Vert's agribusiness credits can be affected by the securitization
company's tax, labor and pension creditors.

The senior CRA will accrue, on a daily basis, a floating interest
rate equivalent to a percentage of the DI rate, to be determined
before the transaction closing. There will be no scheduled
payments to the CRA. During the revolving period, the
securitization company will be able to use collection proceeds to
provide additional financing to the obligors that paid the
receivables at the due date. In such scenario, the excess between
the acquisition price of new receivables and collection proceeds,
if available, will be applied to amortize the CRA on a pro rata
basis. Any amounts received from: (i) collections not reinvested
on additional finance to obligors (ii) recoveries from delinquent
receivables, (iii) insurance claim settlements, (iv) exercise of
the receivables' put option against Nufarm Brasil or (v)
investments in additional Subordinated CRA will be applied to
amortize the Senior CRA. Moody's ratings consider the ultimate
payment of interest and principal to the senior CRA until the
legal final maturity.

The (P)Ba1(sf) (global scale, local currency) and (P)
(national scale) ratings assigned to the Senior CRA are based
mainly on Euler Hermes' ability and willingness to honor its
obligations to indemnify credit losses under the credit insurance
policy. Any change in Euler Hermes' ratings during the life of the
transaction could lead to a change in the ratings of the Senior
CRA. The ratings also take into consideration the operational
risks in the transaction, residual legal risks related to the
securitization company, and the ratings of B3 S.A. as the
counterparty of the interest rate options.

Vert was incorporated in 2016. Since beginning operations, Vert
has issued 2.5 billion in securitizations, totalizing 8 different

Factors that would lead to an upgrade or downgrade of the rating:

Any change in the ratings of Euler Hermes, Nufarm or B3 S.A. could
lead to a change in the ratings on the Senior CRA.

The principal methodology used in this rating was "Moody's
Approach to Rating Trade Receivables-Backed Transactions"
published in May 2015.

C A Y M A N  I S L A N D S

CARDINAL HOLDINGS: Moody's Assigns B2 CFR, Outlook Stable
Moody's Investors Service assigned a B2 corporate family rating
(CFR) and B2-PD probability of default rating (PDR) to Cardinal
Holdings 3, LP. Concurrently, Moody's has assigned a B2 instrument
rating to the new US$250 million senior secured term loan due 2024
and the new US$65 million senior secured revolving credit facility
due 2022, both borrowed at subsidiary Cardinal US Holdings, Inc.
The new debt supports the acquisition of a majority shareholding
in Capco by private equity firm CD&R. The outlook on all ratings
is stable.


The B2 CFR reflects in the first instance the Moody's-adjusted
debt/EBITDA of 4.9x for 2016, pro-forma for the new capital
structure and on a stand-alone basis but without run-rate
adjustments for headcount changes and including current
compensation arrangements. It also reflects (i) the limited scale,
in terms of revenue, focus on the financial services sector and
significant customer concentration with the top customer
accounting for 19% of 2016 revenues, (ii) some execution risk in
transitioning to a stand-alone structure particularly around
performance compensation and implementation of the stand-alone
overhead cost structure, as well as (iii) the cyclicality and
limited revenue visibility of the business beyond 6 months. The
company also competes with a range of larger players such as
Accenture plc (A1 stable) as well as other specialised

However, the B2 CFR also reflects the cash flow generative nature
of the business. In addition, it reflects (i) the focus on
structural growth areas benefiting from the increased
digitalisation, cost pressures and complex regulation in the
global financial services sector, (ii) its client base, which
includes large global institutions, and its recent success of
growing the business with its key customer, and (iii) its
relatively diversified business across several different
countries. A key component of the business is retaining and
properly incentivising its consultant and partner base to retain
its domain expertise, customers and hence to further entrench
itself with customers thereby growing its customer base

Capco competes with other consulting firms as well as larger IT
services companies, particularly for larger global institutions,
and in a cyclical market. Capco operates across several countries
with the US and Canada representing 51% of 2016 revenues, followed
by the UK (19%) and Germany (11%). The company has some revenue
visibility over a 6 month period, with 70% of revenues secured for
2017 as of July, but this materially reduces towards 25% for 2018
revenue expectation. The company considers to have ca. 20% of
revenue under long-term contracts that run more than 2 years, ca
25% as highly likely recurring given the customer relationship and
ca 50% where Capco is a preferred supplier. The remaining 5% are
considered new customer wins. However, Moody's still considers the
business as highly exposed to spending patterns of its customers
and hence broader macroeconomic developments which may not be
fully offset by its diversification across several countries.

Capco focuses on providing technology, digital and business
consulting to the financial services sector thereby benefiting
from increasing digitalisation, cost pressures and complex
regulation in the industry. Most of Capco's business stems from
business change & strategic cost transformation and finance, risk
& compliance, which together account for 68% of 2016 revenues. The
remaining revenues are derived from digital, data and tech
solutions, and technology delivery. In addition, 54% of 2016
revenue was related to Banking and 31% to Capital Markets
functions, which also include the company's expertise in certain
applications including related to former majority shareholder FIS.

Capco has one customer, a large international bank, that accounts
for 19% of 2016 revenue after rapid growth with this specific
customer over the last 4 years. For this specific customer, Capco
provides services across a wide range with several smaller
contracts across regions and departments. The top 10 customers
account for 54% of revenues. While this degree of entrenchment
with this top customer is positive and an example of what the
company seeks to emulate with other customers, the significant
concentration of revenue with one customer is negative in the
context of the company's limited scale.

A key component of the business is retaining and properly
incentivising its consultant and partner base to retain its domain
expertise, customers and hence to further entrench itself with
customers thereby growing its customer base sustainably. Moody's
understands that the company is still in the process of arranging
the future compensation plans, and that any plan will need to be
acceptable to the current partner and consultant base. Hence
Moody's sees a degree of execution risk, and the potential that
expected costs may vary from the company's initial expectations or
possibly result in temporarily increased churn. Employee retention
will be a vital metric going forward also considering the
company's relatively young consultant workforce. Additionally,
Capco needs to establish its stand-alone cost structure over the
coming months, which also adds execution risk.

Moody's-adjusted debt/EBITDA of 4.9x for 2016 includes several
adjustments including estimates for stand-alone overhead costs but
no run-rate adjustments for headcount changes or adjustments for
the expected changes in the compensation structure of the company.
The mix of expected growth, EBITDA support from headcount changes
and possibly compensation structure need to be balanced with the
related execution risk for some of these measures. Nevertheless
the company should have deleveraging potential from both growth
and given its relatively cash flow generative nature with limited
investment needs. Moody's would expect Moody's-adjusted
debt/EBITDA to move towards the lower end of the rating guidance,
ie the 4.0-4.5x range, in the next 12-18 months.

Liquidity profile

The liquidity profile of Capco is adequate. While cash balances
following the completion of the transaction by August will be
minimal, Moody's expects the company to be free cash flow positive
(after cash interest) for the rest of the year and thereafter.
Moody's would also expect limited quarterly seasonality mostly
driven by bonus payments in March and September or possibly larger
contracts on occasion. Historically, the company has exhibited
significant working capital volatility, but Moody's understands
that an increased focus on working capital as a stand-alone
business should result in less volatility going forward. The
company has access to the fully undrawn and committed US$65
million revolving credit facility due 2022. There is one financial
maintenance covenant that will be tested if the revolving credit
facility is drawn more than 35%, and Moody's expects the company
to retain sufficient headroom.

Rating outlook

The stable outlook reflects Moody's expectation that the company
will grow leading to deleveraging and achieve positive free cash

Structural considerations

Cardinal Holdings 3, LP is the future entity reporting audited
accounts and the level at which covenants will be tested. Cardinal
Holdings 2, LP and Cardinal GP 2, LLC are both parent companies of
Cardinal Holdings 3, LP and additional guarantors of the debt. The
guarantee and security package comprises US subsidiaries of
Cardinal Holdings 3, LP and related assets. However, non-US
subsidiaries, which represented 48% of 2016 revenues, 40% of
EBITDA and 25% of book assets, are providing neither guarantees
nor security for the rated debt. The B2 instrument ratings, in
line with the CFR, nevertheless reflect the limited operating
liabilities and pari passu capital structure.

What can change the rating up/down

Whilst limited until a stand-alone track record is established,
upwards pressure on the rating over time could come from Moody's-
adjusted debt/EBITDA falling well below 4.0x on a sustainable
basis in combination with free cash flow generation so that
Moody's-adjusted FCF/debt is moving sustainably towards 10%, and
while maintaining a solid liquidity profile. Conversely, negative
pressure on the rating could occur if Moody's-adjusted debt/EBITDA
rises towards 5.5x, the company lacks free cash flow generation or
liquidity deteriorates.

The principal methodology used in these ratings was Business and
Consumer Service Industry published in October 2016.

Cardinal Holdings 3, LP (Capco) is a consulting business with a
focus on the financial services sector and on IT-related
consulting services. Around 52% of 2016 revenue was generated in
North America, 41% in Europe and 7% in APAC. In May 2017, private
equity firm CD&R bought a 60% stake from Fidelity Information
Services, LLC (FIS, Baa2 stable), which retains a 40% stake.

MILLESIME MASTER: Appoints Joint Official Liquidators
The Grand Court of the Cayman Islands ordered to wound up of
Millesime Master Diversified Funds.  FFP Limited fka Fund Solution
Services Limited was hired as joint liquidators.

The firm can be reached at

         Michael Pearson
         Andrew Childe
         FFP Limited
         2nd Floor Harbour Center, 42 North Church Street
         George Town, Grand Cayman


Fitch Ratings expects to assign a Long-Term Foreign Currency
Rating of 'B+/RR4' to Credivalores-Crediservicios S.A.S.'s
(Credivalores) upcoming senior unsecured fixed-rate notes.

The USD denominated notes will be issued by Credivalores, Bogota,
Colombia, for an amount up to USD300 million at a fixed interest
rate to be set at the time of the issuance. The principal will
mature in five years and interest payments will be made semi-
annually. The notes may be called after three years at the
issuer's option.

The net proceeds of these senior notes will be used to replace
existing debt, including mostly secured debt, and the remainder,
if any, will be used for general corporate purposes. The final
rating is contingent upon the receipt of final documents
conforming to information already received.



Credivalores' IDRs reflect its asset quality metrics and its less
diverse business model. The ratings also consider the company's
risk appetite, financial performance, funding profile and

The expected rating assigned to Credivalores' new issuance
corresponds to the company's IDR and ranks equal with other senior
unsecured and unsubordinated debt. Credivalores has a long-term
foreign currency IDR of 'B+' with a Stable Outlook.

When a non-bank financial institution has a long-term IDR of 'B+'
or below, Fitch typically assigns a Recovery Rating (RR) to the
entity's issues. RRs provide greater transparency on the recovery
component. An 'RR4' rating indicates an 'Average' recovery
prospect in the unlikely event of a default.



An improvement in Credivalores' profitability that leads to a
stabilization of pre-tax income to average assets greater than
1.5% could be positive for the company's long term IDR. A
sustained deterioration in asset quality that reduces the
company's ability to absorb unexpected losses could be negative
for its ratings. The senior unsecured debt rating would generally
move in tandem with the long-term IDR.

Fitch has assigned the following ratings:

Credivalores Senior Unsecured Notes
-- Long-term Foreign Currency 'B+(EXP)/RR4'.

D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: S & Ls Push to Become Commercial Banks
Dominican Today reports that Dominican Republic Central banker
Hector Valdez Albizu disclosed that he will submit to the Monetary
Board the draft to regulate the S & Ls (Lidaapi), so they become
commercial banks, a proposal which has languished for years .

Mr. Valdez made the pledge during a meeting with the members of
the Dominican League of Savings and Loan Associations, which
expressed the difficulties they face in the financial market due
to the disadvantages compared with the commercial banks, according
to Dominican Today.

The report notes that Lidaapi President Francisco Melo presented
Valdez with a summary of the S & L's current situation, noting
that they have been losing market share in terms of financial
operations as high as 10 percent this year, mainly because they in
his view, operate in conditions of inequality in relation to other
financial entities.

The report discloses that Mr. Melo said the situation occurs
because the S & Ls Law limits them to finance construction and
remodeling of homes and savings accounts, and neither pick up
deposits or checking accounts nor conduct operations of
correspondence with international banks through transfers, letters
of credit and other multiple banking operations.

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+'.

DOMINICAN REPUBLIC: Eyes Neighbors as Export Markets Slump
Dominican Today reports that Presidency Administrative Minister
Jose Ramon Peralta said the Dominican Republic will seek to expand
its exports to the Caribbean instead just the US or Europe, where
demand has recently waned.

Mr. Peralta said that the Caribbean market, excluding Haiti, has
been recently importing around US$30.0 billion per year, or nearly
half his country's GDP.

The official said despite the Caricom-Dominican Republic free
trade agreement, the country is exporting only US$180 million to
the region per year, excluding Haiti, or just 0.6% of the total
Caribbean's imports, according to Dominican Today.

Mr. Peralta cited Panama, which unlike the Dominican Republic
doesn't have a free trade agreement with the Caribbean community,
and yet sells around US$600 million per year, "or nearly 4 times
our total exports to the region," the report notes.

"This happens despite the fact that Dominican producers have the
products which that market currently demands," the official said,
speaking at the Dominican Exporters Association's (Adoexpo)
monthly luncheon, the report relays.

                          National Pride

For Adoexpo president Alvaro Sousa Sevilla, Dominican
entrepreneurs need to create an export culture based on promoting
quality products or services in the world markets with
international standards and a commitment to turn "Made in RD" into
a national pride, 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+'.


JAMAICA: Approves $715MM Withdrawal From CDF for Bauxite Institute
RJR News reports that the House of Representatives approved the
withdrawal of more than $715 million from the Capital Development
Fund (CDF), to provide budgetary support to the Jamaica Bauxite
Institute (JBI), among other things.

Finance Minister Audley Shaw said the JBI is to receive $223
million in budgetary support for the 2017/18 financial year,
according to RJR News.

Mr. Shaw said this figure being requested represents 86 per cent
of the $259 million required for operating expenses and capital
expenditure in 2017/18, the report relays.

Mr. Shaw noted that in addition, $487.3 million is to be
reimbursed to Jamaica Bauxite Mining (JBM) for advanced payments
made to Glencore AG on behalf of the Government, the report notes.


MEXICO: Anticorruption Efforts Stall
Juan Montes at The Wall Street Journal reports that Mexico missed
a pivotal deadline on a stalled anticorruption drive that is the
centerpiece of the government's promise to crack down on
widespread wrongdoing by public officials.

Lawmakers failed to reach an agreement on the appointment of an
anticorruption prosecutor, according to The Wall Street Journal.
The Senate also hasn't appointed 18 judges to hear corruption
cases, and almost half of Mexico's 32 states haven't passed
legislation required at the local level, the report notes.

President Enrique Pena Nieto proposed new laws aimed at reducing
graft as concerns about corruption began to overshadow the early
successes of his administration, such as securing opposition
support for major overhauls in energy, tax, telecommunications and
education laws, WSJ relays.

Authorities missed a one-year deadline for new anticorruption
rules, the report notes.  Mexico's top parties blame each other
while analysts say the delay shows a lack of political will to
fight corruption, the report discloses.

"The government has not been an active promoter of the new
anticorruption system," said Jacqueline Peschard, the head of the
Coordinating Council of the National Anticorruption System, a
group recently formed to coordinate efforts against graft, the
report relays.  "And political parties prefer to turn a blind
eye," he added.

The delay comes after the U.S. government said it will seek to
include anticorruption measures as it renegotiates the North
American Free Trade Agreement with Mexico and Canada, WSJ notes.

Graft costs the Mexican economy some $51 billion a year in lost
output, according to the Mexican Institute for Competitiveness, an
advocacy group, the report discloses.  Just 2% of crimes related
to corruption are punished, government figures show, and a recent
poll found 44% of companies in Mexico pay bribes of some kind, the
report relays.

"Corruption and impunity are the two central pending issues in
Mexico," said Ana Laura Magaloni, head of legal studies at the
CIDE university, the report notes.  "We are urgently in need of
much better and independent institutions," she added.

Mr. Pena Nieto was caught up in a scandal in 2014 when it emerged
that his wife and his finance minister bought homes on credit from
a government contractor close to the president, the report relays.

The president and the minister were cleared of wrongdoing by a
general comptroller that Mr. Pena Nieto appointed, prompting the
major political parties to try to forge an independent system, the
report discloses.  The anticorruption prosecutor is to be
appointed by the Senate and can only be dismissed with its
consent, the report says.

The lack of progress has dented Mr. Pena Nieto's approval ratings
and damaged the image of ruling Institutional Revolutionary Party-
the PRI-ahead of next year's presidential elections, the report
relays.  A recent poll showed 83% of Mexicans view the PRI as
corrupt, making it the lowest ranked party by a wide margin, the
report discloses.

Leftist presidential front-runner Andres Manuel Lopez Obrador has
made corruption a main talking point ahead of the campaigns, the
report notes.

Mr. Pena Nieto's spokesman said the naming of the anticorruption
czar and judges is up to the political parties and he hopes they
will name the prosecutor soon, the report says.

The conservative opposition National Action Party, or PAN, is
seeking to change the law to give the prosecutor greater powers
and independence before the appointment is made, the report notes.
The PRI wanted to name someone in July but said it has been
distracted by the PAN's allegations of electoral fraud in state
elections, the report discloses.

The appointment of the special prosecutor, seen as essential to
the anticorruption drive, won't happen before the fall session of
Congress, senators said, the report notes.  "I'm skeptical we can
have a special prosecutor soon," said Hector Yunes, a PRI senator,
he added.

MINERA FRISCO: Moody's Corrects March 21 Release
Moody's de Mexico, on July 18, 2017, corrected a press release
dated March 21, 2017, on Minera Frisco, S.A.B. de C.V.  In the
corrected release, a list of affected ratings, including the
ticker, was therefore added after the first paragraph.

The revised release is as follows:

Moody's de Mexico has upgraded the senior unsecured national scale
rating of Minera Frisco, S.A.B. de C.V. to from

The following rating was upgraded:

Issuer: Minera Frisco, S.A.B. De C.V.

Senior Unsecured Notes upgraded to (MFRISCO 13)


The action reflects the correction of a prior error. In the 13
June 2016 rating action, when Moody's repositioned national scale
ratings of non-financial corporates following the recalibration of
Mexico's national rating scale, an inappropriate national scale
rating map was used. The error has now been corrected, and rating
action reflects the use of the appropriate rating map. All other
ratings of Minera Frisco remain unchanged.

Minera Frisco's B3 corporate family rating continues to reflect
its high leverage, as well as its small scale compared to peers,
modest reserves in certain of its mines and the pressures on its
production which has been declining recently. In addition, the
rating also incorporates the company's weak liquidity profile.
Nevertheless, the B3 also takes account of Minera Frisco's
moderate mine diversification and expected enhanced metal
diversification, once the Tayahua Primary Copper project is
finalized and substantially increases the company's copper

An upgrade would require improvements in the company's liquidity
and credit metrics. Quantitatively, an upgrade would require
debt/EBITDA below 4.5x and EBIT/interest expense above 2.0x on a
sustained basis, both as adjusted by Moody's.

The ratings could be downgraded if Minera Frisco experiences any
significant operational difficulties or a substantial increase in
operating costs. Quantitatively, a downgrade would be considered
if debt/EBITDA increases to above 5.5x on a sustained basis. A
downgrade would also occur if the company's liquidity profile
deteriorates further.

Minera Frisco is dedicated to the exploration and exploitation of
mining lots for the production and sale of gold and silver dore
bars, as well as copper cathode and copper concentrate, lead-
silver and zinc concentrates. The company has nine mining units in
Mexico and generated MXN13.9 billion of revenues in 2016.

The principal methodology used in this rating was Global Mining
Industry published in August 2014.

The period of time covered in the financial information used to
determine Minera Frisco, S.A.B. de C.V.'s rating is between
01/01/2012 and 12/31/2016 (source: audited financial statements
and regulatory filings).


PERU: Refinery to Rely on Imported Crude Oil
EFE News reports that the modernization of Peruvian state oil
company Petroperu's Talara refinery is 60 percent completed and
will have the capacity to process 95,000 barrels of crude per day
starting in 2021, most of which will need to be imported from
Ecuador or Colombia.

The megaproject in Talara, a desert district of the Piura region
that is about 1,200 kilometers (745 miles) north of Lima, is being
carried out with $5.4 billion in financing, including the
provision of loan guarantees totaling $1.25 billion from the
Spanish Export Credit Agency (CESCE), according to EFE News.

P U E R T O    R I C O

AES PUERTO RICO: Moody's Cuts Sr. Secured Rating to Caa1
Moody's Investors Service downgraded the senior secured rating,
including approximately $194 million of senior secured bonds
issued by the Puerto Rico Industrial, Tourist, Educational,
Medical, and Environmental Control Facilities Financing Authority
on behalf of AES Puerto Rico L.P (AES PR or Project) to Caa1 from
B3.  The rating action reflects the July 2nd filing by Puerto Rico
Electric Power Authority (PREPA; Ca negative) of a petition in US
District Court for relief under Title III of the Puerto Rico
Oversight, Management, and Economic Stability Act (PROMESA). The
rating outlook for AES PR is revised to negative from developing.


The rating action reflects the heightened default risk for AES PR
owing to PREPA's decision to file for bankruptcy protection under
Title III, which gives PREPA the ability to reject contracts,
including the power purchase agreement (PPA) between PREPA and AES
PR. "While Moody's does not expects PREPA to pursue this option
owing to the cost competitiveness of the resource, the fact that
PREPA now has the ability to reject contracts increases default
risk for AES PR bondholders. Prior to the filing, Moody's had
expected PREPA to implement its restructuring plans as a Pre-
existing Voluntary Agreement through Title VI of PROMESA (Creditor
Collective Action), which specifically does not allow for the
rejection of contracts" Moody's says.

"While rating action recognizes the heightened default risk for
the Project's bondholders, it also acknowledges several compelling
factors that support PREPA affirming the AES PR contract. AES PR
is among PREPA's most cost-effective generating resources, which
benefits from the use of Colombia-sourced coal to fire the plant
resulting in the all-in costs for PREPA being quite attractive (at
8.5 to 9.0 cents/kwh) relative to fuel oil generated, owned
resources or other alternatives available to PREPA. Also, certain
terms of the AES PR PPA are attractive to PREPA from a cost and
flexibility perspective as the failure of AES PR to reach
availability requirements enables PREPA to reduce the amount paid
for capacity. Additionally, under the PPA, PREPA compensates AES
PR at a lower heat rate than the plant has historically performed,
leading to a lower energy payment for PREPA than AES PR's actual
costs. Moreover, capacity payments under the PPA will decline
materially beginning in 2020 (by 23%) and will decline again in
2022 (by an additional 22%), making the asset that much more
attractive to PREPA. The rating considers the protections provided
to secured project lenders, given the collateral value, along with
the amortizing debt structure as well as additional protections,
such as debt service reserves and a cash flow waterfall, provided
by the project financing structure. Moody's further note that
payments to AES PR have a priority position as a PREPA operating
expense, strengthened by the strategic importance and essential
service of the asset as it provided 16% of the island's generation
during 2016. Consistent with past practices, Moody's understand
that PREPA continues to pay AES PR for power, albeit with some
delays, and intends to fully repay AES PR all amounts due ($44
million) at the time of the PREPA filing."

Moody's notes that while the Project's underlying financial and
operating performance in 2016 were in line with expectations,
financial results were weaker than in prior years requiring a draw
on the debt service reserve (DSR) to cover scheduled debt service
in 2016. This year, the Project's financial performance also faces
some challenges as scheduled debt service during 2017 is elevated.
However, financial performance is expected to improve in 2018 and
beyond owing primarily to lower annual debt service.

AES PR's operating and financial performance during 2016 were
impacted by an extended outage in late 2015, which dampened
availability below the guarantee incorporated in the PPA for much
of the year, resulting in a lower capacity payment under the PPA,
and higher associated operating and maintenance costs. The outage
occurred in October 2015 as part of a scheduled major maintenance
that uncovered the need to complete a re-wind of the generator in
Unit 2. The outage lasted 80 days through October, November and
December 2015, but because of the rolling 12-month nature of the
availability calculation, it impacted financial performance in
2016. For the full year 2016, the rolling 12-month availability
was 84.3%, resulting in AES PR not receiving its full capacity
payment from PREPA.

During 2016, the Project was also impacted by a one-time payment
made as part of a litigation settlement, and by another outage,
albeit a smaller one, during May 2016 owing to a tube leak. The
Borrower also faced higher debt service in 2016 owing to a term
out of a $25 million working capital facility that was drawn just
prior to its expiration in November 2014. The term loan is being
repaid in quarterly installments over the remaining life by
November 2017.

Taken together, the weaker financial and operating performance,
the litigation settlement and the higher debt service, resulted in
a debt service coverage ratio (DSCR) for 2016 to be less than
1.0x. As alluded to above, to meet this shortfall, AES PR used
approximately $6 million of unrestricted cash and a $6 million
draw from its bank DSR to cover scheduled debt service this year.
Moody's notes that had the litigation settlement payment not
occurred during 2016, AES PR would have had a DSCR slightly in
excess of 1.0x for the year.

Moody's expects the Project's operating performance to improve in
2017. Management expects availability to be 90% in 2017, which is
at the required minimum in the PPA, enabling the Project to
receive its full capacity payment under the PPA. Availability for
the 12 months through May 2017 (which excludes the impact of the
outage in the last months of 2015) was 92.3%. Further, the one-
time litigation payment will not recur in 2017. However, Moody's
expects the Project's DSCR for 2017 to be only about 1.0x owing to
substantially higher debt service requirements ($18 million higher
than 2016) as the final payment of the Tranche A term loan and the
final payment due under the working capital facility term loan are
due in November 2017. Once AES PR gets through the critical year
of 2017, total debt service will drop considerably in 2018 and
beyond, and the Project is expected to comfortably cover debt
service going forward.


The negative outlook is consistent with the outlook for PREPA and
incorporates recent events that suggest a high degree of
uncertainty concerning the timing and the terms of any PREPA
restructuring. While Moody's believes that AES PR is a cost
effective source of power for PREPA, and that the PPA between AES
PR and PREPA will remain in place, PREPA's filing to restructure
is in unchartered waters with continued uncertainty about the
manner in which events will unfold. Also, given the liquidity
position at PREPA and the weak economy across the commonwealth,
the timeliness of payments under the contract remain an ongoing
concern even if PREPA does not seek to reject the contract.


In light of the negative outlook, the rating is not expected to
move upward over the near-to-medium term. The rating outlook could
stabilize if PREPA's restructuring is announced, and it is clear
that the PPA with AES PR will remain in place.


The Project's rating could face downward pressure if PREPA were
actually to take steps to reject the AES PR PPA. The rating could
also face negative action if there were to be additional
operational problems at the Project resulting in lower revenues
and higher expenses, particularly given the elevated debt service
in 2017, resulting in another draw on the debt service reserve.

AES PR, an indirect wholly owned subsidiary of AES Corporation
(AES: Ba2, stable), owns and operates a 454 megawatt (MW) coal-
fired cogeneration facility located on the southeastern coast of
Puerto Rico. The Project sells all of its firm energy and capacity
pursuant to a 25-year power purchase agreement to the PREPA, a
public corporation and governmental agency of the Commonwealth of
Puerto Rico (Caa3 negative). The Project began operating in 2002.

The principal methodology used in these ratings was Power
Generation Projects published in May 2017.

SHORT BARK: U.S. Trustee Forms 7-Member Committee
Andrew R. Vara, Acting U.S. Trustee for Region 3, on July 18,
appointed seven creditors to serve on the official committee of
unsecured creditors in the Chapter 11 case of Short Bark
Industries, Inc.

The committee members are:

     (1) Global Enterprises
         Attn: Michael Selin
         7506 N. Chicago Avenue
         Portland, OR 97203
         Tel: (503) 705-5275

     (2) Atlantic Diving Supply, Inc.
         Attn: Kay J. Dunn Jr.
         621 Lynnhaven Parkway, Suite 400
         Virginia Beach, VA 23452
         Tel: (757) 416-6369

     (3) Diversitex Inc.
         Attn: Christopher Summers
         376 Hollywood Avenue, Suite 203
         Fairfield, NJ 07004
         Tel: (973) 787-9252
         Fax: (973) 787-9253

     (4) Milliken & Company
         Attn: Gerard Murphy
         P.O. Box 1926, M149
         Spartanburg, SC 29304-1926
         Tel: (864) 503-1350
         Fax: (864) 503-6866

     (5) MMI Textiles, Inc.
         Attn: Amy Bircher
         29260 Clemens Road
         Westlake, OH 44145
         Tel: (440) 899-8050
         Fax: (440) 899-8055

     (6) SSM Industries, Inc.
         Attn: Anita Hostetler
         P.O. Box 602
         Spring City, TN 37381
         Tel: (423) 365-2426
         Fax: (423) 365-2185

     (7) Southern Mills, Inc.
         dba Tencate Protective Fabrics
         Attn: Bradley Reynolds
         365 South Holland Drive
         Pendergrass, GA 30567
         Tel: (706) 693-1776

Official creditors' committees have the right to employ legal and
accounting professionals and financial advisors, at a debtor's
expense.  They may investigate the debtor's business and financial
affairs.  Importantly, official committees serve as fiduciaries to
the general population of creditors they represent.

                About Short Bark Industries

Short Bark Industries, Inc. --
provides military apparels for the Department of Defense, law
enforcement industry.  The Company's current or previously
manufactured items in the military category include but are not
limited to military MOLLE, medium and large rucksacks, assault
packs, IWCS, ACU, ABU, BDU, helmet covers, FROG, A2CU and more.
The Company offers men and boys suits, over garments, bag, and
coats.  Short Bark Industries holds over 120,000+ square feet of
manufacturing capacity with operations in Florida, Puerto Rico and

The Company and 1 other affiliates sought bankruptcy protection on
July 10, 2017 (Bankr. D. Del., Case No. 17-11501 and Case No.
17-11502).  The petition was signed by Phil Williams, CEO and

The Debtors listed total assets of $10 million to $50 million and
total liabilities of $10 million to $50 million.

Bielli & Klauder, LLC, serves as lead bankruptcy counsel to 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.
Send announcements to


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

                   * * * End of Transmission * * *