TCRLA_Public/170908.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, September 8, 2017, Vol. 18, No. 179



ADECOAGRO SA: Discloses Proposed Senior Unsec. Notes Offering
ADECOAGRO SA: Moody's Rates USD500MM Proposed Notes (P)Ba2


BAHAMAS: Deficit Rises by $32.9MM


BARBADOS: Minister Issues Warning to International Businesses


BRAZIL: Police Advance Probe Into Meatpackers, Dairy Firms
JSL SA: Fitch Affirms BB Long-Term IDR; Outlook Stable
MINERVA SA: Fitch Affirms BB- Long-Term IDR; Outlook Stable
MONTICELLO INSURANCE: Moody's Keeps B1 IFS Rating on Vale Upgrade


MASISA SA: Fitch Affirms B+ IDR; Outlook Remains Negative

D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Business Leaders Hail US$416.6M Injection


JAMAICA: Signs Billion Dollar Agreement With IDB
SAN MIGUEL: Moody's Rates New USD300MM Senior Unsecured Notes Ba2

                            - - - - -


ADECOAGRO SA: Discloses Proposed Senior Unsec. Notes Offering
Adecoagro S.A. disclosed that it intends to offer senior unsecured
notes in a private placement to qualified institutional buyers in
accordance with Rule 144A under the Securities Act of 1933, as
amended, and outside the United States to non U.S. persons in
accordance with Regulation S under the Securities Act. The Notes
are expected to be guaranteed on a senior unsecured basis by
certain of the Company's subsidiaries.

The timing of pricing and terms of the Notes are subject to market
conditions and other factors. The proceeds from the Notes offering
will be used by the Company to repay existing debt and for general
corporate purposes.

ADECOAGRO SA: Moody's Rates USD500MM Proposed Notes (P)Ba2
Moody's Investors Service has assigned a provisional (P)Ba2
Corporate Family Rating to Adecoagro S.A.  At the same time,
Moody's assigned a (P)Ba2 rating to the company's USD500 million
proposed notes. This is the first time that Moody's has rated
Adecoagro. The outlook on the rating is negative, which mirrors
the outlook on Brazil's sovereign bond ratings. The provisional
designation for ratings will be removed once the notes have been
issued and assuming no material changes have occurred to the draft
documentation reviewed by Moody's.


Adecoagro's (P)Ba2 ratings incorporate its relevant positioning in
Brazil's sugar-ethanol sector, including relevant economies of
scale due to the large size of its plants, high productivity
levels, and the ownership of over 90% of its sugarcane, which
allow for one of the lowest cost profiles among its peers. The
company's strong credit metrics, conservative financial policies,
and adequate liquidity profile are also key rating considerations,
especially in light of the sugar-ethanol industry's inherent
volatility. Adecoagro's experienced management and the
diversification into agricultural products in Argentina which
partly mitigates weather and other event risks are additional
credit positives.

In 2016, Adecoagro's sugar-ethanol segment presented a production
cost of 0.10 USD/lb, including planting renewal and annual
plantation maintenance, which compares to an average 0.14 USD/lb
for Brazilian producers. Supporting the company's cost efficiency
and profitability levels are (i) the continuous harvest system
which allowed for 365 days of crushing in 2016, eliminating the
off-season, thus further increasing production and energy
generation relative to its fixed costs; (ii) a lower land lease
cost by being mainly located in the state of Mato Grosso do Sul
(MS), in comparison to most sugar and ethanol installed capacity
in Sao Paulo; (iii) high installed cogeneration capacity having
generated 742 thousand MWh in 2016, or 67 KWh per ton; and (iv)
tax benefits for ethanol sales in the state of MS. In its turn,
Argentina, where the company has most of its farming operations,
is a competitive global producer of soybeans and corn. In
2015/2016 Argentina was the 3rd largest soybean producer globally
and 5th largest corn producer. Seventy percent of the company's
crops are produced in the humid Pampas region, with a favorable
weather pattern and rich soil that does not require the usage of

The ratings are constrained by Adecoagro's raw material
concentration in the state of Mato Grosso do Sul, where about 74%
of its EBITDA was generated by two sugarcane mills in 2016 (an
average participation of 66% in the last three years). Moody's
views the organization in production clusters in the sector as an
important competitive advantage, since it increases operating
efficiencies and enhances cost structure. Nevertheless, the fact
that Adecoagro runs just one major cluster and concentrates most
of its EBITDA generation in a limited geographic region exposes it
to relevant weather and event risks. Partly offsetting this risk
is the company's diversification into different crops in
Argentina. In 2016 Adecoagro generated USD869 million in sales of
which 69% from sugar, ethanol and energy sales; 16% from soybeans,
corn, wheat, sunflower and others; 11% from rice; and 4% from the
dairy business. This segmental diversity helps to mitigate
negative sales and margin impacts stemming from each specific
segments. Still, given the relevance of the sugar-ethanol
business, the company's credit quality is highly correlated to the
performance of such business.

Other constraints are its small scale, considering annual revenues
of USD973 million last-twelve months (LTM) June 2017, as compared
to global peers; and its country risk exposure to Argentina and

As of June 2017, Adecoagro's cash position of USD296 million
covered short-term debt by 1.1x. As well, the company has USD95
million in readily marketable inventories (RMI). Pro-forma for the
issuance of its USD500 million notes, Adecoagro will reduce
secured debt and improve its debt maturity profile. Moody's
expects the company's short-term debt to reduce from the current
USD230 million to less than USD75 million and that most of its
debt will be unsecured. Leverage was at 2.9x in the LTM ended June
2017 and Moody's estimates it will gradually reduce to a range of
2.7x to 2.5x in the next 12 to 18 months.

Rating Outlook

The negative outlook of Adecoagro reflects the negative outlook of
the Brazilian Government sovereign bond ratings. Despite a
relevant export element in Adecoagro's sales and price environment
its operations are highly reliant on the local dynamics, as such,
the company's rating could be impacted by a downgrade of the
sovereign rating. A deterioration of the sovereign rating caused
by economic and/or political distress could have a relevant impact
in its business via increased risk aversion by banks and
creditors, more restricted consumer environment, high inflation,
and government policies that directly affect the business.

Upgrade Triggers

An upgrade would require increased production diversification,
sustained free cash flow generation and an improvement in
liquidity profile, with a cash balance that consistently covers
its short-term obligations. Quantitatively an upgrade would
require Debt/EBITDA below 2.0x and EBITA/Interest Expense above

Downgrade Triggers

The ratings could be downgraded in case of a deterioration in the
company's liquidity profile, profitability or credit metrics.
Quantitatively, a downgrade could happen if Debt/EBITDA remains
above 3.5x or EBITA/Interest Expense remains below 2.0x.

Adecoagro is headquartered in Buenos Aires and it generated
revenues of USD973 million LTM June 2017. An average of 77% of
these sales were generated by the Brazilian operations in the last
three years. The company is primarily engaged in agricultural and
agro-industrial activities into three segments: (i) sugar-ethanol
and energy, mainly in Brazil; (ii) farming, including the
production and commercialization of soy, corn, wheat, rice, dairy
and others, and (iii) land transformation. In the LTM the
company's consolidated EBITDA reached USD299 million with a margin
of 30.7%.


BAHAMAS: Deficit Rises by $32.9MM
RJR News reports that the Central Bank of the Bahamas' (CBOB)
Monthly Economic Report for July revealed that the country's
deficit rose by $32.9 million, an increase of 13 per cent due to a
$98.2 million "expansion in total expenditure".

The CBOB's figures for the 11 months of fiscal year 2016/2017
reveal that the country's deficit now sits at $285.3 million,
after total government expenditure ballooned to $2,104.5 million,
according to RJR News.

The bank's news got even more grim as it announced that all of
government's spending commitments have yet to be paid, the report

As reported in the Troubled Company Reporter-Latin America on
July 31, 2017, reports that Bahamian Prime
Minister Dr. Hubert Minnis has disclosed harsh cuts in the Bahamas
Government spending as he embarks on a strategy to remedy the
country's fiscal deficit, which is projected to reach $500 million
this year.


BARBADOS: Minister Issues Warning to International Businesses
------------------------------------------------------------- reports that Dominican Republic Minister of
Commerce, International Business and Small Business Development
Donville Inniss says he's prepared to give some financial services
and international business companies the boot if that's what it
takes to protect Barbados' reputation.  With the sector facing
increasing scrutiny and mounting threats of international
sanction, Minister Inniss said it was important to maintain
Barbados' good name as a preferred jurisdiction in which to do
business, according to

His comments came in light of tax reforms from the Organization
for Economic Cooperation and Development (OECD), the latest of
which is a multilateral convention to prevent base erosion and
profit shifting (BEPS), the report notes.

BEPS, considered a harmful tax practice, is defined by the OECD as
tax avoidance strategies that exploit gaps and mismatches in tax
rules to artificially shift profits to low or no-tax locations,
the report relays.

International business and financial services jurisdictions also
have to grapple with ring-fencing rules -- where companies
financially separate portions of their assets or profits for
various reasons without necessarily being operated as a separate
entity, the report says.

Addressing the recent 'What Businesses need to Know about Base
Erosion and Profit Shifting and Double Taxation Treaties' seminar
at the Savannah Hotel, Minister Inniss said local authorities were
engaging with the OECD forum, in relation to the new tax rules,
"almost on a bi-weekly basis looking at templates provided and
determine what changes need to be made in Barbados regime
regarding the sector," the report relays.

"So, I throw a caution out to you that it will not be business as
usual," he told industry representatives, including officials of
the Barbados International Business Association, the Central Bank
and the Financial Services Commission, the report quoted Minister
Inniss as saying.

The report discloses that stating that Barbados was still
addressing issues that were raised before BEPS, Minister Inniss
said now is the time for decisive action "in terms of what the new
international business and financial services sector will look

"I caution you that it will not be perhaps what it was ten or 15
years ago," he said, pointing out that Barbados was making efforts
to strengthen its regulatory regime while ensuring greater
transparency, the report says.

"We can't leave any stone unturned when it comes to compliance
issues, when it comes to risk analysis and the ability to know
your customer.  At the end of the day, if we are to remain in the
international business and financial services industry, we cannot
compromise on a strong regulatory environment.  It will create
some discomfort to some clients, but at the end of the day we want
business of substance that can fly under any radar and do no harm
to this jurisdiction, the report quoted Minister Inniss as saying.

"So if we have to ask some companies to leave our domicile, we
will do so in the most diplomatic manner. If it doesn't work
through diplomacy, we kick your butt through the door and ask you
to go, but suffice to say, this industry is too critical for us to
compromise in this area," warned Minister Inniss, 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


BRAZIL: Police Advance Probe Into Meatpackers, Dairy Firms
Channel News Asia reports that Brazilian federal police advanced a
probe into alleged inspection bribes involving officials from the
Agriculture Ministry, meatpackers and dairy companies in northern
and northeastern Brazil.

In a statement, police said they were serving 11 arrest warrants,
28 search-and-seizure warrants and bringing in 12 people for
questioning as part of the probe, according to Channel News Asia.

The statement did not disclose the names of any of the people
involved, the report notes.

The probe is one in a series of corruption scandals in Brazil,
Latin America's largest economy, ensnaring major companies from
meatpackers and engineering firms to oil producers, as well as
several high ranking politicians, the report relays.

Police unveiled the investigation in May, citing meatpacker
Minerva SA as one of the companies targeted, the report notes.
Calls to media representatives for Minerva went unanswered.

As reported in the Troubled Company Reporter-Latin America on
Aug. 17, 2017, S&P Global Ratings removed its 'BB' long-term
foreign and local currency sovereign credit ratings on the
Federative Republic of Brazil from CreditWatch, where it had
placed them with negative implications on May 22, 2017. S&P said,
"At the same time, we affirmed the 'BB' long-term ratings, and the
outlook is negative. We also affirmed our 'B' short-term foreign
and local currency ratings on Brazil. The transfer and
convertibility assessment is unchanged at 'BBB-'. In addition, we
removed the 'brAA-' national scale rating from CreditWatch with
negative implications and affirmed the rating with a negative
outlook. This incorporates the revision of the mapping table for
Brazil national scale ratings, published Aug. 14, 2017."

JSL SA: Fitch Affirms BB Long-Term IDR; Outlook Stable
Fitch Ratings has affirmed the Long-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) of JSL S.A. (JSL) at 'BB'
and National scale ratings at 'AA-(bra)'. The Rating Outlook is

JSL's ratings reflect its strong business profile, supported by a
leading position in the Brazilian logistics industry and
diversified and resilient portfolio of products. The company's
cash flow generation has been improving despite the recession in

Fitch's base case scenario projects that JSL's leverage ratio, as
measured by FFO adjusted leverage, will remain around 2.5x in the
next two years. Fitch expects JSL to pursue managed growth for
Movida Participacoes S.A (Movida - National scale rating
A+(bra)/Stable Outlook)and does not incorporate material dividends
from this subsidiary in its projections.


Prominent Market Position and Diversified Portfolio

JSL has a leading position in the Brazilian logistics industry
with a diversified portfolio of services with relevant presence in
multiple sectors of the economy. The company's main services
include: supply chain management (32% of its gross revenue), car
rental and fleet management (32%), outsourcing of fleet and
equipment (13%), dealerships (12%), passenger transportation (6%)
and general cargo transportation (4%). JSL's strong market
position, coupled with long-term contracts for most of its
revenues, minimizes its exposure to more volatile economic cycles.
The company's significant operating scale has made it an important
purchaser of light vehicles and trucks, giving it a significant
amount of bargaining power versus other competitors in the

Solid Operating Cash Flow Generation

JSL has been efficiently managing its business growth and
profitability during the recession period in Brazil. The
integration of its business and cross-selling opportunities has
supported growth and gains in scale. Between 2015 and the latest
12-month period (LTM) ended June 30, 2017, JSL's net revenue
increased by 18%, to BRL7.1 billion. During the same period, the
company's EBITDA remained almost stable at BRL1.1 billion while
its FFO rose to BRL2.2 billion from BRL1.4 billion. Excluding
Movida, Fitch calculates that EBITDA was almost stable at around
BRL800 million while FFO grew to BRL825 million from BRL587

More Rational Capex Growth to Ease Pressure on FCF

On a consolidated basis, BRL2.8 billion of gross capital
expenditures led to negative FCF of BRL171 million during the LTM
ended June 30, 2017. FCF is expected to remain negative in the
range of BRL200 million to BRL300 million in the next two years.
JSL has the flexibility to improve FCF by reducing growth capex,
as most of its capital investments are geared toward increasing
the size of its fleet/equipment and are linked to specific
contracts. Considering only renewal capex, JSL's operating cash
flow generation is sufficient to support these investments.
Excluding growth capex, JSL generated BRL1.2 billion of positive
FCF during LTM June 30, 2017. Excluding Movida, gross capex was
BRL638 million and FCF was positive at BRL109 million.

Moderate Leverage

JSL's leverage, as measured by FFO adjusted leverage, was 2.4x as
of LTM June 30, 2017. This FFO ratio is considered low for the
rating category. Fitch does not expect a material reduction in the
near term with leverage expected to be around 2.6x in 2017,
declining to 2.2x by 2018, following deleverage trend at Movida.
Fitch's calculation of EBITDA does not add-back the non-cash cost
of the vehicles sold. As a result, leverage as measured by EBITDA
is higher than leverage measured by FFO. In Fitch's base case,
JSL's net debt-to-EBITDA ratio will remain around 4.0x to 4.5x in
the next two years.


Given the nature of its business, Fitch believes JSL has an above-
average ability versus its 'BB' rated peers to post FCF
generation, given its flexibility to postpone capital expenditures
related to new vehicles (growth capex). The company's relatively
higher leverage and weaker financial flexibility are key
differentiators to Localiza Rent a Car S.A (LT FC IDR BB+; LT LC
IDR BBB; National LT rating AAA(bra)).


Fitch's key assumptions within Fitch ratings case for the issuer
-- Mid-single-digit revenue growth in 2017;
-- FFO margins at around 32%;
-- Net capex at around BRL750 million in the next two years;
-- Cash balance remains sound compared to short-term debt;
-- Dividends at 25% net income;
-- No large-scale M&A activity.


Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action:
-- FFO Adjusted Leverage around 2.0x on a sustained basis;
-- Solid and consistent operating results from its retail rent a
    car business (Movida), with FFO margin above 27%.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action:
-- FFO adjusted leverage consistently above 3.0x;
-- Deterioration of sound liquidity compared to short-term debt,
    leading to refinancing risk exposure;
-- Deterioration in used car sales in Brazil and/or in the
    coverage ratio fleet value-to-net debt to below 1.0x;
-- Large debt-funded M&A acquisition or entering into a new
    business in the logistics sector that adversely impacts JSL's
    capital structure on a sustained basis or increases its
    business risk exposure;
-- Secured debt relative to FFO above 2.0x could lead to a
    downgrade of the unsecured debt.


Improved Liquidity: JSL's adequate liquidity position vis-a-vis
its short-term debt obligations is a key credit consideration,
with cash covering short-term debt by an average 1x during the
last five years. JSL has a recurring need for debt refinancing,
since its debt amortization schedule had been historically
concentrated in the next three years. During the first eight
months of 2017, JSL has issued over BRL3.5 billion in a series of
debt instruments, including the recent BRL1.019 billion of cross-
border bond issuance (USD325 million) due to 2024 and Movida's
BRL400 million of local debentures due to 2022.

On a pro forma and consolidated basis, including recent debt
issuances, JSL had BRL3.3 billion of cash and BRL1.8 billion of
short-term debt as of June 30, 2017. Excluding Movida's cash and
short-term debt, JSL's cash-to-liquidity position is adequate with
BRL2.3 billion of cash and BRL1.1 billion of short-term debt. JSL
has BRL2.8 billion of debt coming due up until year-end 2018
(BRL1.7 billion, when excluding Movida).

As of June 30, 2017, JSL reported total debt of BRL7.2 billion.
The company's debt profile is mainly composed of banking credit
lines (33%), local debentures and CRA issuances (36%), FINAME
operations (18%), and leasing operations (6%). Currently, about
22% of JSL's debt is secured.

Fitch has affirmed the following ratings:

-- Long-Term Foreign Currency IDR at 'BB';
-- Long-Term Local Currency IDR at 'BB';
-- National Long-Term Rating at 'AA-(bra)';
-- Local debentures issuance at 'AA-(bra)'.

The Rating Outlook is Stable.

JSL Europe
-- USD325 million senior unsecured notes due to 2024 at 'BB'.

MINERVA SA: Fitch Affirms BB- Long-Term IDR; Outlook Stable
Fitch Ratings has affirmed Minerva S.A.'s Long-Term Foreign and
Local Issuer Default Ratings at 'BB-'. The Rating Outlook remains

Minerva's ratings reflect the improving fundamentals for beef in
Brazil due to a better cattle cycle, the company's good
profitability, its strong position in the export market,
comfortable liquidity and Fitch's expectations of an improvement
in the company's credit profile over as sustained period.
Minerva's rating is tempered by the volatility of free cash flow
and its rapid expansion.


Acquisition of JBS Mercosul: Fitch views the deal as positive to
Minerva's business profile. The daily slaughtering capacity
increase to 26,380 (+52%) will consolidate the company's operating
base in South America while diversifying operations outside
Brazil. The acquired plants are certified to exports to markets
including the U.S., China and Japan. Fitch views the acquisition
as complementary with minimal integration risk given the company's
track record of satisfactory integration. Brazilian operations
will account for 45% of the Minerva's total capacity, while 21%
will be located in Paraguay, 19% in Argentina, 12% in Uruguay, and
3% in Colombia. The assets acquired will contribute fully to
operating cash flow in 2018.

Delayed Deleveraging: Fitch expects that the recent acquisition of
JBS S.A.'s Mercosul assets will slow down Minerva's deleveraging
process as Fitch initially anticipated. Minerva has been growing
very fast over the last four years. Fitch estimate EBITDA
contribution from the acquired plants to be approximately BRL60
million-BRL70 million in 2017. Annual EBITDA should improve to
BRL280 million-BRL330 million by 2020 from increased revenues and
higher margins. Fitch expects Minerva's net debt/EBITDA ratio at
around 4.3x in 2017, including only five months of the acquired
plants, and for it to gradually decline towards 3.5x by 2018,
compared to 3.6x in 2016 and 4.2x in the second quarter of 2017
(2Q17). Management is targeting a net debt/EBITDA of about 3x for
the company.

Product and Region Concentration Risks: Minerva operates solely in
the beef business in South America countries and is therefore less
diversified from a product standpoint than Brazilian-based protein
companies JBS S.A. and Marfrig S.A. Minerva has limited product
diversification as it operates mostly in the commodity meat with
no presence in branded packaged food products. Although increased
participation of live cattle, cattle by products and distribution
of third party products in consolidated sales (22% of sales as of
the latest 12 months [LTM] 2Q17), these revenues are still
dictated by the same risks of the meat commodity industry. Among
the significant industry risks are a downturn in the economy of a
given export market, the imposition of increased tariffs or
sanitary barriers, and strikes or other events that may affect the
availability of ports and transportation.

Free Cash Flow (FCF) Negative: Fitch expects Minerva's FCF after
interest and dividends to remain negative in 2017 due to increased
capex, working capital need as a result of the recent acquisition
and increased capacity utilization of its plants due to increased
demand. Fitch expects FCF to normalize in 2018 due to less capex
and working capital requirements.

Stable Margins: Minerva's sales and earnings are subject to
periodic volatility caused by changes in input costs and protein
prices due to supply and demand dynamics of commodity meat. The
company registers the highest EBITDA margin in the beef sector
with EBITDA margin above 10% over the last two years. Fitch
expects EBITDA margin to remain in the range 9.5%-10% over the
next years. The expected margin contraction is the result of the
ramp-up of the recent acquisition and the re-opening of a new
plant in Brazil. Fitch expects a gradual improvement of EBITDA
margin in 2018 due to increased synergies, good cattle cycle and
improved domestic demand.

Favorable Operating Outlook: Global beef fundamentals are expected
to remain positive in the next couple years for Brazilian
producers due to steady global demand, limited global beef supply,
ample livestock supply in Brazil and the continued depreciated
Brazilian currency relative to the U.S. dollar. Minerva's export
revenues, including the "Other Division", represented 60% of total
revenues in the LTM ended June 30, 2017. The domestic market is
expected to slowly rebound as purchasing power of Brazilian
consumers gently improves and the uncertainty about political risk
clears up.


Minerva is well positioned to compete in the global protein
industry under its South America operations. Compared to Marfirg
Global Food S.A. (BB-/Stable) and JBS S.A. (BB/Rating Watch
Negative), Minerva is smaller and less diversified from a product
and geographic stand point as the company is mainly a beef
processor in South America. The three companies operate with
similar capital structure and liquidity position. Its competitive
advantages include its location in a favorable cattle grow
environment, large cattle scale, operating efficiency in line with
industry average, relationship with farmers, customers and
distributors. Minerva's rating is tempered by the volatility of
free cash flow due to its rapid expansion.


Fitch's key assumptions within Fitch ratings case for the issuer

-- Acquisitions of JBS Mercosul plants in Argentina, Uruguay and
    Paraguay of USD300 million;
-- Organic Revenues growing by mid-single digits in 2017 and 4%
    in the medium term due to slightly higher volume, stable
    domestic and international prices and incremental revenue of
    recent acquisition of BRL1.3 billion in 2017 growing to BRL3.5
    billion by 2020;
-- EBITDA margin in the range of 9.5%-10% over the next two
-- Capex to sales of about 2.5% to 2.6% in the medium term;
-- Dividends payment/shares buybacks of BRL160 million in 2017.


Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
-- Improved product mix;
-- Sustainable positive FCF generation and;
-- Substantial decreases in gross and net leverage to below 4.5x
    and 3.0x, respectively, on a sustained basis.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
-- Sharp contraction of Minerva's performance;
-- Increased net leverage above 4.0x-4.5x on a sustained basis;
-- A pronounced and sustained liquidity deterioration.


Adequate Liquidity: Fitch considers Minerva's liquidity position
adequate. As of June 30, 2017, cash and cash equivalent totaled
BRL4.4 billion, which is sufficient to amortize debt through 2025
and cover ongoing working capital requirements. On the same date,
total debt was BRL8.5 billion of which 29% was short-term debt and
78% was denominated in foreign currency, mainly U.S. dollars.
Minerva's cash policy is to hold enough cash to cover three months
of cattle purchase with a minimum of BRL2.5 billion to run
business considering political uncertainties in Brazil.


Fitch affirms the following ratings:

Minerva S.A.:
-- Long-Term Foreign and Local Currency IDR at 'BB-'; Outlook
-- National Long-Term Rating at 'A(bra)'; Outlook Stable.

Minerva Luxembourg S.A.:
-- Senior unsecured notes due 2023, 2026 and perpetual at 'BB-'.

MONTICELLO INSURANCE: Moody's Keeps B1 IFS Rating on Vale Upgrade
Moody's Investors Service (MIS) says that the B1 insurance
financial strength (IFS) rating, with a stable outlook of
Monticello Insurance Limited, the captive reinsurance subsidiary
of Brazil based Vale S.A. (senior unsecured debt at Ba1, stable
outlook), is not affected by the upgrade of Vale's ratings.


Moody's said that MIL's B1 rating with a stable outlook was
unaffected, despite the upgrade of Vale's ratings, primarily
because of the weak sovereign credit profile and operating
environment of Barbados (Caa3, stable outlook), where MIL is
domiciled, which mitigate upward rating pressure for MIL.
According to Moody's, the likelihood of a credit event in Barbados
in the near-term is very high, given lack of fiscal adjustment and
limited financing options. Also, the low level of foreign exchange
reserves in addition to weak funding conditions make the country
increasingly susceptible to event risks (see press release titled
"Moody's downgraded Barbados' government bond and issuer ratings
to Caa3 and maintained a stable outlook." dated March 9, 2017).
Consequently, Monticello's rating is still appropriately
positioned at its current level, without any impact by the upgrade
on Vale's ratings.

Moody's noted that MIL's B1 rating is based primarily on the
support provided by Vale and on Monticello's integration with the
global risk management function of the group. MIL is a core part
of Vale's risk-management program and is the sole insurance
captive utilized in Vale's property insurance and business
interruption program worldwide. Explicit support from Vale to MIL,
which has been provided through capital injections -- totaling
US$240 million over the past three years --and ongoing financial
support to cover losses is a key driver of MIL's credit rating,
absent which MIL's rating would be lower. The rating agency
expects that MIL will continue to receive extensive parental
support from Vale, including the parent company's willingness to
backstop MIL's obligations to its fronting insurance carriers, and
to provide additional capital to MIL in the event that it has
insufficient funds to meet its obligations under the reinsurance

MIL's rating is primarily constrained by the weak sovereign credit
profile and operating environment of Barbados as well as by its
product risk concentration and significant risk exposures which
has resulted in earnings volatility, as the company has reported
net losses in 2015.

Moody's mentioned that MIL's rating could be upgraded in the case
of a further upgrade of Vale's rating or stronger explicit support
from Vale to MIL, in the form of an unconditional, irrevocable
guarantee, and if Barbados' sovereign rating is upgraded.
Conversely, MIL's rating could be downgraded if: 1) Vale's rating
is downgraded; 2) support from the group to the captive company is
reduced; 3) the captive reinsurer begins to cover risks of
external (i.e. non-Vale) entities or engages in non-reinsurance
business; or 4) Barbados' sovereign rating is downgraded.

Monticello Insurance Limited is based in Barbados. As of December
31, 2016, its total assets amounted to US$348 million and its
shareholders' equity was US$155 million. The company's total
annual gross premium for 2016 totaled US$34.7 million, and the
company recorded a net income of US$3.9 million in 2016.

The principal methodology used in these ratings was Global
Reinsurers published in April 2016.


MASISA SA: Fitch Affirms B+ IDR; Outlook Remains Negative
Fitch Ratings has affirmed the Foreign and Local Currency Issuer
Default Ratings (IDRs) of Masisa S.A. (Masisa) at 'B+' and its
National long-term rating at 'BBB(cl)'. The Rating Outlook remains

Masisa's ratings reflect the company's still weak cash flow
generation and high leverage, pressured by declining demand for
wood boards in Latin America and weak currencies in several
markets. The Negative Outlook continues to reflect concerns about
economic weakness in Latin America and Fitch's expectation that
the company will continue to struggle in this market during 2017
and 2018. It also reflects concern about a decline in the
company's size and presence in the global board market if the
company follows through with the sale of industrial units in
Brazil and Mexico.

A Stable Outlook is possible with additional assets sales if the
company's leverage is reduced significantly and if Fitch
determines the cash flow from the remaining markets to be
relatively predictable and stable.


Still Weak Operational Cash Flow: Fitch expects Masisa to generate
about USD115 million of recurring EBITDA and USD40 million of cash
flow from operations (CFFO) in 2018. Fitch's base case projections
consider the sale of industrial assets only in Argentina during
2017 and includes about USD12 million of EBITDA from Venezuela.
This is a decline from USD122 million of EBITDA and USD47 million
of CFFO during the latest 12 months (LTM) ended June 30, 2017, and
compare unfavourably versus USD157 million of EBITDA in 2015.
Masisa's results remain pressured by declining demand for wood
boards in Latin America and weak currencies in several markets.
Lower investments and dividends contributed to free cash flow
(FCF) of USD11 million in the LTM ended June 2017, compared with
negative USD14 million and USD120 million in 2016 and 2015,
respectively. The company invested USD36 million in the LTM June
2017, after investing USD364 million between 2013 and 2015.

Sharp EBITDA Reduction from Asset Sales: The sale of industrial
units in Argentina, Brazil and Mexico should lower annual
recurring EBITDA generation by about USD50 million. If the asset
sales are concluded as announced, Fitch projects EBITDA of USD74
million in 2018, compared with USD122 million in the LTM ended
June 30, 2017. Chile is Masisa's main market and accounted for
about 39% of the company's net revenues in the LTM ended June
2017, while Mexico, Brazil and Argentina accounted for about 47%,
Venezuela for 12%, and Argentina forestry business for about 2%.
Brazil's EBITDA contribution significantly deteriorated in the
last three years, pressured by the adverse economic conditions.
Recurring EBITDA from Mexico was expected to gradually increase
following the startup of the new MDF plant in June 2016.

Less Diversified Business Profile: Masisa's strategy to sell its
industrial units in Argentina, Mexico and Brazil will weaken the
company's geographic diversification, making it more susceptible
to downturns in one market. Masisa signed an agreement to sell the
industrial business unit of Masisa Argentina to EGGER
Holzwerkstoffe GmbH (EGGER, Austria) for USD155 million in July
2017. The transaction includes the sale of about 280,000 m3 of
MDF's annual production capacity, 165,000 m3 of particleboard,
274,000 m3 of melamine, and 74,000 m3 of MDF mouldings. The
company also announced in July 2017 its intention to sell its
industrial assets in Mexico and Brazil. Masisa believes it could
generate more than USD350 million from these sales. If successful,
the sale of assets will reduce Masisa's annual production capacity
of PB, MDP, and MDF board to 1.3 million cubic meters, from 3.5
million cubic meters before the sale of assets.

High Leverage: Leverage remained high due to weak results from
Brazil and sluggish economic growth throughout the region, while
the company's debt levels remain elevated. Cash flow from Mexico
has been slow to materialize following the completion of the board
mill during 2016. Net leverage was 5.3x in LTM ended June 2017, or
6.0x excluding Venezuela. Masisa's net debt was USD649 million at
the end of June 2017. This compares with USD667 million in
December 2016 and USD707 million in December 2015.

The sale of industrial assets in Argentina, Brazil and Mexico
would lower Masisa's net leverage to more conservative levels of
2x, or 2.5x excluding Venezuela, and considers that proceeds will
be used to reduce the company's indebtedness. Considering only the
sale of Argentina's industrial units, the loss of EBITDA
generation is partially offset by debt reduction with the proceeds
from the asset sale, and lower interest expenses. In Fitch's base
case projections, excluding only Argentina, net leverage would
reduce to about 4.0x in 2018, or 4.5x excluding Venezuela.

Significant Presence in Venezuela: Masisa is exposed to exchange
controls in its Venezuelan operations, although its operations are
self-sufficient in the country. Restrictions imposed by the
Venezuelan Central Bank have limited the U.S. dollar supply in
that country, which constrains the repatriation of available cash.
Venezuela represented about 9% of total recurring EBITDA in the
LTM ended June 2017.


Masisa is the second largest player in terms of production
capacity of boards in Latin America. The company's main
competitors are the Brazilian Duratex (not rated), the leader in
the segment in Latin America, and the Chilean Celulosa Arauco y
Constitucion S.A. (Arauco, 'BBB'/Negative). Arauco is also the
second-largest market pulp company in the world. Among the Latin
America forestry products companies, like Arauco, Empresas CMPC
('BBB'/Stable), Fibria ('BBB-'/Stable), Suzano ('BB+'/Positive),
and Klabin ('BB+'/Stable), Masisa is more exposed to the economic
weakness in Latin America as its activities are concentrated in
boards, has higher leverage and a more limited liquidity position.


Fitch's key assumptions within Fitch ratings case for the issuer
-- Sale of industrial assets in Argentina for USD155 million in
    2017. Proceeds will be used to amortize debt.
-- Fitch did not consider the potential sale of industrial assets
    in Mexico and Brazil.
-- Additional asset sale of USD20 million in 2017.
-- No dividends.
-- Investments around USD40 million per year.


-- The recovery analysis assumes that Masisa would be considered
    a going-concern in bankruptcy and that the company would be
    reorganized rather than liquidated.
-- Fitch has assumed a 10% administrative claim.

Going-Concern Approach:
-- Masisa's going-concern EBITDA is based on LTM June 2017 EBITDA
    and includes pro forma adjustments for the sale of industrial
    assets in Argentina.
-- The going-concern EBITDA estimate reflects Fitch's view of a
    sustainable, post-reorganization EBITDA level upon which Fitch
    base the valuation of the company. The going-concern EBITDA is
    18% below LTM EBITDA to reflect the sale of assets and
    declining demand for wood boards in Latin America.
-- An EV multiple of 6x is used to calculate a post-
    reorganization valuation and reflects a mid-cycle multiple.
    The estimate considered that Masisa is not considered to have
    any unique characteristic that would allow for a higher
    multiple, such as significant market share, unique brand, or
    undervalued assets.

The waterfall results in a 69% recovery corresponding to 'RR3'
recovery. However, Masisa's recovery rating is capped at 'RR4' due
to Fitch's methodology than imposes a cap for Chile.


Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
-- The conclusion of the divestitures of Argentina, Brazil and
    Mexico, significantly improving capital structure and reducing
    net debt/recurring EBITDA, excluding Venezuela, to below 5.0x,
    would likely result in a revision of the Rating Outlook to

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
-- Net debt/recurring EBITDA ratio, excluding Venezuela, above


Masisa's liquidity position is manageable for operational purposes
with USD89 million of cash and equivalents, of which only USD1
million was held in Venezuela as of June 30, 2017, compared with
USD64 million as of Dec. 31, 2016. Masisa made a non-recurring
sale of non-core assets for USD62 million in 2016 and USD5 million
during the first half 2017, which benefited the company's

In February 2017, Masisa disbursed a USD65 million long-term loan
in a Club Deal up to USD100 million due in five years. Proceeds
will be used to extend debt maturity profile, reducing refinancing
risk in the short term. As of June 30, 2017, Masisa had USD141
million of debt maturing in the short term and USD281 million from
July 2018 to June 2019, including the USD200 million senior notes
due in the first half 2019. Masisa plans to use the proceeds from
the sale of its industrial unit in Argentina, of USD155 million,
to reduce debt. Potential sale in Mexico and Brazil should also
contribute for debt amortization and a more conservative capital


Fitch has affirmed the following ratings:

Masisa S.A.
-- Long-Term Foreign and Local Currency IDRs at 'B+';
-- National scale rating of Bond Lines at 'BBB(cl)';
-- Long-term National Scale rating at 'BBB(cl)';
-- USD200 million senior unsecured 9.5% notes due 2019 at
    'B+/RR4'; the notes are unconditionally guaranteed by Forestal
    Tornagaleones and Masisa Forestal;
-- National Short-term rating at 'N2(cl)'.
-- National Equity rating at 'First Class Level 3(cl)'.

The Rating Outlook remains Negative.

D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Business Leaders Hail US$416.6M Injection
Dominican Today reports that north region business leaders
stressed the impact of the government's announced RD$20 billion
injection to the economy, as well as the release of more than
RD$22 billion (US$416.6 million) from the legal reserve.

Santiago Retailers and Industrialists Association former president
Sandy Filpo and other Santiago and Espaillat province business
leaders agreed that this injection is important, because in their
view, will spur economic activities, according to Dominican Today.

Administrative minister Jose Ramon Peralta announced the
government's initiative, which according to business leaders, will
benefit national producers and retail in general, the report

In a statement, Mr. Filpo said that in addition to boosting the
cash flow and making productive entities more dynamic, the
injection of the more than RD$43.0 billion will have a positive
impact on the agro sector and all key economic activities, the
report notes.  "When retail is boosted, it has a positive impact
on all productive sectors of the nation," he added.


Mr. Filpo called the government measure is timely, "because it
occurs when there's been a reduction of the cash flow, which will
change as more capacity is produced in demand for goods and
services," the report adds.

As reported in Troubled Company Reporter-Latin America on July 24,
2017, Moody's Investors Service has upgraded the Dominican
Republic's long term issuer and debt ratings to Ba3 from B1 and
changed the outlook to stable from positive, based on the
following key drivers:

(1)  The Dominican Republic's continued robust growth outlook
     compared to rating peers, coupled with a reduction in
     external risks as current account deficits have declined and
     international reserves have increased.

(2)  The reduction in fiscal deficits over the last four years and
     Moody's expectation that fiscal deficits will remain shy of
     3% of GDP, supported by fiscal restraint and reduced
     transfers to the electricity sector.


JAMAICA: Signs Billion Dollar Agreement With IDB
RJR News reports that Jamaica is to receive $2.5 billion under an
agreement signed with the Inter-American Development Bank, (IDB).

The loan was signed through the Credit Enhancement Fund which will
provide funds to Micro Small and Medium Entrepreneurs (MSMEs)
through the Development Bank of Jamaica, according to RJR News.

Finance Minister Audley Shaw reiterated that the Government is
committed to providing access to financing to MSMEs, the report

Mr. Shaw said micro entrepreneurs are a significant sector that
commercial banks have often overlooked, the report relays.

The Credit Enhancement Fund will provide a partial guarantee for
each MSME loan not exceeding 385 thousand US dollars, the report

Individual loan requests in areas such as agriculture,
construction, energy, manufacturing, tourism, trade and
distribution as well as other activities not included in the IDB's
Exclusion List will be eligible for partial guarantees, the report

As reported in the Troubled Company Reporter-Latin America on
Feb. 9, 2017, Fitch Ratings affirmed Jamaica's Long-Term Foreign
and Local Currency Issuer Default Ratings (IDRs) at 'B' with a
Stable Outlook. The issue ratings on Jamaica's senior unsecured
Foreign and Local Currency bonds are also affirmed at 'B'. The
Outlooks on the Long-Term IDRs are Stable. The Country Ceiling is
affirmed at 'B' and the Short-Term Foreign Currency and Local
Currency IDRs at 'B'.

SAN MIGUEL: Moody's Rates New USD300MM Senior Unsecured Notes Ba2
Moody's Investors Service has assigned a Ba2 rating to San Miguel
Industrias PET S.A. new USD300 million senior unsecured notes due
2024. The outlook on the rating is stable. The company's CFR and
the ratings on its outstanding USD200 million notes remain

Ratings are:

Issuer: San Miguel Industrias PET S.A. ("SMI")

- LT Corporate Family Rating: Ba2

- USD200 million Senior Unsecured notes due 2020: Ba2

- USD300 million Senior Unsecured notes due 2024: Ba2

Outlook: Stable


The USD300 million issuance proceeds will be directed mostly to
refinance existing debt, including the tender offer for SMI's
7.75% senior notes due 2020 announced on August 29. Accordingly,
if the issuance is successfully completed, there will be no
reduction in leverage, but the lengthening of SMI's debt
amortization schedule will enhance its credit and financial
profile, as it improves the company's liquidity and potentially
reduces interest expenses.

In the scope of the tender offer, the holders who tender prior to
September 11, 2017 will be eligible to receive USD1,046.53 per
USD1,000 of principal amount of SMI 2020 Notes, while holders who
tender after September 11, 2017 and prior to September 26, 2017,
will receive USD1,016.53 per USD1,000 of principal amount of SMI's
2020 Notes.

While the transaction will not lead to leverage reduction, Moody's
expects that SMI's leverage will decrease, despite the
deterioration observed at the end of 2016. Although still below
the 5.8x observed in 2013, total adjusted debt to EBITDA increased
to 5.0 times in fiscal year 2016, from 4.2 times in fiscal year
2015, due to the additional debt raised to fund investments
related to new long term contracts such as the agreement extension
with a regional client in Peru and Ecuador, the purchased
injection and compression assets in Peru, Colombia, Ecuador,
Central America and Mexico, the acquisition of a new blowing molds
in Peru and Colombia and a thermoforming line in Peru and a
recycling PET machinery in Colombia. All of these, which were
mostly funded with debt, will allow the company to absorb a
potential incremental volume growth coming from the before
mentioned signed contracts, contributing on about USD14 million of
additional EBITDA which the company expects to reach to USD90
million in the next 12-18 months. Moody's expects leverage will
materially decline as debt should remain stable and the EBITDA of
the new contracts will be fully incorporated in 2017 and 2018,
reaching levels below 4.0x (total adjusted debt to EBITDA) over
the next 18 months

SMI's Ba2 rating reflects its leading position in the Andean
Region, Central America & Caribbean rigid plastic market and its
track record of being able to pass through volatility in raw
material costs to its customers, avoiding material impacts on
operating margins. The ratings consider SMI's advantageous
position from its intensive use of modern technology and the
existence of long term contract agreements (90% of total sales)
with its main clients. Also incorporated in the ratings is its
ownership by one of the largest business conglomerates in Peru,
Intercorp Peru Ltd. (Ba2 stable), which amongst others, owns one
of the largest banks in Peru, Interbank (Baa2 stable).

On the other hand, the rating is mainly constrained by the
company's reduced size and scale when compared to global industry
peers. As well, the rating is limited by SMI's tight liquidity
profile with a cash position of USD 24 million as of December 2016
despite the adequate debt amortization profile after the potential
issuance of the new USD300 million bond, with very low short term

The stable outlook is supported by SMI's improving credit metrics
overall, specially its operating margins and the adjusted leverage
ratio that was reduced back in December 2015.

The ratings could experience upward pressure if the company were
to increase its size and scale while sustaining its operating
margins, its market position and improving its financial profile
in addition to regular publication of quarterly audited financial

Moody's cautions that a rating downgrade could be triggered if the
company's credit metrics deteriorate materially whether due to
operating difficulties or deterioration in its market leading
position. Specifically, a downgrade could result if adjusted
leverage is above 4.5 times (5.0x as of December, 2016) and
EBIT/Interest expense ratio below 3 times (1.8x for December 31,
2016) for an extended period.

Headquartered in Lima, Peru, SMI is a Peruvian manufacturer and
distributor of rigid plastics, offering a full rigid packaging
product portfolio with special focus on PET preforms and bottles
utilized in food & beverage and consumer markets. With operations
in Peru, Ecuador, Panama, El Salvador and Colombia, and more
recently in Mexico, Honduras, Guatemala, Nicaragua and Costa Rica
among other countries in Central America and the Caribbean, the
Company has six product lines and 13 facilities strategically
located in seven countries in Latin America, which include two
recycling PET resin plants, one in Peru and other in Colombia. For
fiscal year ended December 31, 2016 SMI reported total revenues of
approximately USD245 million. Since August 2013, SMI is part of
Intercorp Peru Ltd, one of the largest and most diversified
conglomerates in Peru with operations in the Financial Services
Industry, Retail, Education, Real Estate, Restaurants, among

The principal methodology used in this rating was Packaging
Manufacturers: Metal, Glass, and Plastic Containers published in
September 2015.


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, 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 * * *