TCRLA_Public/170920.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

          Wednesday, September 20, 2017, Vol. 18, No. 187



ALGODON WINES: Obtains $693K From Sale of Preferred Stock
ARAUCO ARGENTINA: S&P Affirms Then Withdraws B Corp Credit Rating


BANCO DO ESTADO: S&P Affirms 'BB-' Global Scale ICR
JBS SA: Names Jose Batista Sobrinho as CEO
PETROBRAS GLOBAL: S&P Rates Proposed $2BB Sr. Unsec. Notes 'BB-'


DOMINICA: Hurricane Maria Inflicts "Mind-Boggling" Devastation


HAITI: Transportation Strike Over Taxes Shuts Down Much of Country


JAMAICA: Dropping Low Value Coins


MEXICO: Powerful Quake Leaves Nearly 140 Dead
CYDSA SAB: S&P Assigns BB/B Corp. Credit Ratings, Outlook Stable

P U E R T O    R I C O

BANESCO USA: Fitch Hikes IDR to BB- & Revises Outlook to Stable
BAILEY'S EXPRESS: Allowed to Continue Using Cash Until Sept. 30
HUMANA HEALTH: S&P Lowers CCR to 'BB+', Outlook Negative
TOYS "R" US: Collapses Into Bankruptcy

T R I N I D A D  &  T O B A G O

PETROTRIN: TTTI Calls for Action on Oil Scandal


LATAM: Hurricane Maria Headed for Virgin Islands and Puerto Rico

                            - - - - -


ALGODON WINES: Obtains $693K From Sale of Preferred Stock
Between Aug. 11, 2017, and Aug. 31, 2017, Algodon Wines & Luxury
Development Group, Inc., issued 69,348 shares of Series B
Convertible Preferred Stock for cash proceeds of $693,480 to
accredited investors, as disclosed in a Form 8-K report filed with
the Securities and Exchange Commission.  Holders of Series B
Preferred will be entitled to, among other things, an annual
dividend, liquidation preference, conversion to common stock of
the Company upon certain events, redemption if not previously
converted to common stock, and voting privileges.

For this sale of securities, no general solicitation was used, no
commissions were paid, and the Company relied on the exemption
from registration available under Section 4(a)(2) and Rule 506(b)
of Regulation D of the Securities Act of 1933, as amended.  An
initial Form D was filed on April 7, 2017, and an amended Form D
was filed on June 15, 2017, June 29, 2017, July 12, 2017, July 27,
2017, and Sept. 13, 2017.

                      About Algodon Wines

Through its wholly-owned subsidiaries, Algodon Wines & Luxury
Development Group, Inc. -- invests
in, develops and operates real estate projects in Argentina.  AWLD
operates a hotel, golf and tennis resort, vineyard and producing
winery in addition to developing residential lots located near the
resort.  The activities in Argentina are conducted through its
operating entities: InvestProperty Group, LLC, Algodon Global
Properties, LLC, The Algodon - Recoleta S.R.L, Algodon Properties
II S.R.L., and Algodon Wine Estates S.R.L. AWLD distributes its
wines in Europe through its United Kingdom entity, Algodon Europe,

Marcum LLP, in New York, issued a "going concern" qualification on
the consolidated financial statements for the year ended Dec. 31,
2016, citing that the Company has incurred significant losses and
needs to raise additional funds to meet its obligations and
sustain its operations.  These conditions raise substantial doubt
about the Company's ability to continue as a going concern.

Algodon Wines reported a net loss of $10.04 million on $1.52
million of sales for the year ended Dec. 31, 2016, compared to a
net loss of $8.27 million on $1.86 million of sales for the year
ended Dec. 31, 2015.

As of June 30, 2017, Algodon Wines had $8.07 million in total
assets, $4.14 million in total liabilities, $4.80 million in
series B convertible redeemable preferred stock and a total
stockholders' deficiency of $880,859.

ARAUCO ARGENTINA: S&P Affirms Then Withdraws B Corp Credit Rating
S&P Global Ratings affirmed its 'B' long-term corporate credit
ratings on Arauco Argentina. The outlook is stable. Immediately
after, we withdrew the ratings on Arauco Argentina at the
company's request.

At the time of withdrawal, Arauco Argentina's credit rating
reflected our view that the company would sustain a manageable
capital structure while managing to remain a moderately strategic
subsidiary of its parent. The recent intercompany loan for the
bond payment reinforces that view. Currently, Arauco Argentina's
debt is mainly composed by a $250 million intercompany loan due
2022 granted by its parent Celulosa Arauco, while its short term-
debt represents less than 10% of its total debt and consists
purely of pre-export financing. In addition, it reflected our
expectation that although, the more competitive environment in the
Brazilian pulp market will put some pressure on the company's
performance, the company will still benefit from its strong market
position in the argentine pulp and panels businesses, thereby
achieving stable financial metrics with debt to EBITDA of around
3.6x-4x and funds from operations (FFO) to debt of around 20% by
end of 2017.


BANCO DO ESTADO: S&P Affirms 'BB-' Global Scale ICR
S&P Global Ratings affirmed its 'BB-' long-term global scale and
'brA+' national scale issuer credit ratings on Banco do Estado do
Rio Grande do Sul S.A. (Banrisul). The outlook on both scales
remains negative.

The ratings on Banrisul reflect our belief that the Fiscal
Responsibility Law in Brazil, banking regulations, and Banrisul's
corporate governance protect the bank against the state's possible
intervention. Still, the higher risk of operating in RS weighs on
the bank's revenue stability and, consequently, on its business
position given the state's prolonged weak finances. S&P said, "We
also base our ratings on the bank's asset quality metrics, which
remain at similar levels to 2016 despite the bank's efforts to
increase the participation of consumer lending in its loan
portfolio, as consumer loans have been presenting better asset
quality metrics. Additionally, the bank has maintained its
capitalization level, given that our forecasted risk-adjusted
capital (RAC) ratio for the next 18 months should remain around
5.4%. At the same time, Banrisul continues to present a
diversified retail-based funding structure and adequate levels of

JBS SA: Names Jose Batista Sobrinho as CEO
Paul Kiernan at The Wall Street Journal reports that Brazilian
meatpacking giant JBS SA named founder Jose Batista Sobrinho, 84,
to replace his jailed son as chief executive, defying shareholder
calls for outside management as the family-run company faces a
mounting corruption scandal.

JBS also promoted the former CEO's 26-year-old son, Wesley Batista
Filho, to a "global leadership team" tasked with helping the aging
founder make decisions, the company said, according to The Wall
Street Journal.

Mr. Batista Sobrinho, who started JBS as a small-town
slaughterhouse in 1953, said in a press release he was "proud" to
reassume the top job in the company and has "a lot of confidence
in the performance of our leadership," the report notes.

But the shuffle is likely to strike many observers as a tone-deaf
and potentially risky attempt by the Batista family to cling to
control of a company that now employs some 235,000 people, the
report relays.

It came days after Brazilian police arrested JBS's former CEO,
Wesley Batista, and his brother, former chairman Joesley Batista,
both sons of Mr. Batista Sobrinho, the report discloses.
Authorities allege the brothers used insider trading to profit
from a plea deal earlier this year in which they admitted to
bribing nearly 2,000 Brazilian politicians while they grew JBS
into the world's largest meat company, the report notes.

Brazil's Federal Police said Wesley and Joesley Batista had used
the company to make illegal trades of currency derivatives and JBS
shares, the report relays.  The brothers, and the company, denied

A chorus of Brazilian politicians, including President Michel
Temer, who was implicated in the brothers' plea bargain, have
sought to portray Wesley and particularly Joesley Batista as
unrepentant criminals, the report notes.  Mr. Temer has previously
denied any wrongdoing.

JBS's largest non-Batista shareholder, Brazilian state development
bank BNDES, has called for professional management since details
from the brothers' plea bargain emerged in May, the report adds.

As reported in the Troubled Company Reporter-Latin America on
July 31, 2017, S&P Global Ratings affirmed its 'B+' global scale
corporate credit ratings on JBS S.A. and JBS USA and its 'brBBB-'
national scale rating on JBS. S&P also affirmed the 'B+' senior
unsecured debt ratings on JBS and JBS USA and the 'BB' senior
secured debt ratings on JBS USA. At the same time, S&P removed all
ratings from CreditWatch. The outlook is negative.

PETROBRAS GLOBAL: S&P Rates Proposed $2BB Sr. Unsec. Notes 'BB-'
S&P Global Ratings assigned its 'BB-' debt rating on Petrobras
Global Finance B.V.'s (PGF's) proposed senior unsecured notes due
January 2025 and January 2028, in an expected amount of up to $2.0
billion, subject to market conditions. PGF is a wholly-owned
finance subsidiary of Brazilian oil and gas company Petroleo
Brasileiro S.A. - Petrobras (BB-/Stable/--). Petrobras will
unconditionally and irrevocably guarantee the notes. The state-
owned oil company will use this issuance for general corporate
purposes, including refinancing of upcoming maturities. The
company has also announced two concurrent liability management
transactions in order to purchase or exchange certain bonds that
will mature in 2019, 2020 and 2021. We don't expect changes to the
company's net leverage following those transactions.

"Our 'BB-' corporate rating on Petrobras reflect its improved
liquidity position and governance standards after the "Lava Jato"
corruption investigation as well as ongoing debt refinancing,
which has allowed the company to extend debt maturities and to
maintain a solid cash position. We consider Petrobras' business
model as its main strength, underpinned by sound scale, quality,
and operational efficiency of its exploration and production
segment. The capital expenditure (capex) cuts and the
implementation of the new pricing policy have also contributed to
improved cash flow generation prospects and strengthened capital

"Also, the ratings continue to reflect Petrobras' ultimate
relationship with its controlling shareholder, the Brazilian
government, and the latter's incentives, capacity, and tools to
support the company. We believe there is a very high likelihood
that the government would provide timely and sufficient
extraordinary support to Petrobras in the event of distress.

"As a result, according to our government-related entity criteria,
absent any sovereign rating action, while our current assessment
of extraordinary government support remains unchanged, a downgrade
of Petrobras would occur if its stand-alone credit profile were to
fall to 'b-' or lower (from the current 'bb-') or if we were to
downgrade Brazil by more than one notch, given that we don't
believe the company can have a higher rating than its controlling

Any upgrade of Petrobras, on the other hand, could result from the
successful execution of the divestment program, the effectiveness
and sustainability of the new governance standards and pricing
policy, and the higher capex efficiency, resulting in adjusted net
debt to EBITDA consistently at 3.0x-3.5x, funds from operations to
net debt at 20%-25%, and free operating cash flow to net debt of


  Petroleo Brasileiro S.A. - Petrobras
    Corporate credit rating                   BB-/Stable/--

Rating Assigned

Petrobras Global Finance B.V.
    Senior unsecured


DOMINICA: Hurricane Maria Inflicts "Mind-Boggling" Devastation
-------------------------------------------------------------- reports that hurricane Maria, one of the fastest
intensifying hurricanes on record, has left widespread devastation
in Dominica, with Prime Minister Roosevelt Skerrit reporting that
the country has so far lost "all what money can buy and replace".

But his biggest fear is the loss of life and injuries that have
resulted from the Category 5 hurricane which passed right over the
island, according to

Hurricane Maria brought 160 mile-per-hour winds that blew off
roofs -- among them the roof of Prime Minister Skerrit's official
residence, the report notes.

Communications were knocked out and Prime Minister Skerrit, who
had been communicating via Facebook, said the "initial reports are
of widespread devastation," the report relays.

"So far, the winds have swept away the roofs of almost every
person I have spoken to or otherwise made contact with. The roof
to my own official residence was among the first to go and this
apparently triggered an avalanche of torn away roofs in the city
and the countryside," Prime Minister Skerrit wrote, the report
says.  "My greatest fear for the morning is that we will wake to
news of serious physical injury and possible deaths as a result of
likely landslides triggered by persistent rains."

Prime Minister Skerrit said that once the all-clear is given, the
search for the injured and those trapped in the rubble will begin.

"I am honestly not preoccupied with physical damage at this time,
because it is devastating . . . indeed, mind boggling. My focus
now is in rescuing the trapped and securing medical assistance for
the injured.

"We will need help, my friend, we will need help of all kinds,"
the Dominican leader wrote, the report notes.

Prime Minister Skerrit said it was too early to speak of the
condition of the air and seaports, but he suspected they would
both be inoperable for days to come, the report relays.

Prime Minister Skerrit is, therefore, trying to solicit the
support of friendly nations and organizations with helicopter
services, so he can see the destruction and determine what is
needed, the report notes.

Hurricane Maria, which developed from a storm to a Category 5
hurricane in just over a day, weakened briefly overnight to
Category 4 status before regaining strength, and battered
Guadeloupe, the report adds.

Reuters reported a senior French Civil Protection official saying
that while Martinique escaped largely unscathed, a communications
blackout with Guadeloupe meant it would be several more hours
before damage there could be assessed, the report relays.

Hurricane Maria was expected to hit the Virgin Islands -- still
recovering from Hurricane Irma which hit two weeks ago -- last
Sept. 19 afternoon and Puerto Rico after.


HAITI: Transportation Strike Over Taxes Shuts Down Much of Country
Trinidad Express reports that much of Haiti has come to a halt
because of a transportation strike over new taxes proposed by the

Most Haitians do not have private cars and they get around on
motorcycle taxis or the often elaborately painted vans and trucks
known as "tap taps," according to Trinidad Express.  But none were

Most shops were closed, as were schools because students could not
get to class, the report notes.  Government offices were
technically open but most employees could not get to work, the
report relays.

Unions called the strike because of proposed new taxes on driver
licenses, gas and property, among other things, the report says.
President Jovenel Moise was out of the country to attend the U.N.
General Assembly but has said the money will go back to the public
in the form of services and new infrastructure, the report adds.


JAMAICA: Dropping Low Value Coins
--------------------------------- reports that Jamaica's one-cent, 10-cent and 25-
cent coins will soon be no more.

Information Minister Ruel Reid has disclosed that the coins will
be pulled from circulation, according to

Speaking to reporters at post-Cabinet press briefing, he said
Cabinet took the decision in keeping with the Bank of Jamaica
(BOJ) Act which stipulates that the BOJ shall have the power, on
giving three months' notice in the Gazette, to call in any notes
and coins on payment of the face value, the report relays.  On the
expiration of the notice, such notes or coins shall cease to be
legal tender, the report notes.

Minister Reid explained that the decision was taken after an
assessment showed that the use of coins had been decreasing since
2005, the report relays.

Minister Reid added that details of a cost-efficiency assessment
also showed that manufacturing costs consistently exceeded the
face value of the coins, the report relays.

Once the coins are withdrawn from circulation, the only other coin
denominations would be the $1, $5, $10, and $20, the report adds.

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'.


MEXICO: Powerful Quake Leaves Nearly 140 Dead
Agence France-Presse reports that nearly 140 people were killed
when a powerful, 7.1-magnitude earthquake struck Mexico on
Tuesday, September 19, toppling buildings in the capital and
sowing panic on the anniversary of a devastating 1985 quake.

The toll could rise further, notes the report. Rescue crews and
volunteers in Mexico City -- home to 20 million people -- were
clawing through the rubble of at least 49 collapsed buildings
looking for survivors and bodies.

Mexico City recorded 36 of the deaths, while Morelos state
directly south of it saw 64 killed, according to AFP.  The others
were registered in Puebla (29), a town southeast of the capital,
and in Mexico state (nine), which lies just to the west of the

National Coordinator for Civil Protection Luis Felipe Puente said
a total of at least 138 people died, the report relays.

AFP recalls that in a quake exactly 32 years earlier, 10,000
people perished in Mexico City. Memories of that event spurred
panic on Tuesday and prompted many to quickly run for safety
outdoors when walls around them swayed and cracked.

According to Agence France-Presse, the quake -- which occurred in
the early afternoon, hours after city authorities had conducted an
earthquake drill -- caused damage in the bustling center of the
city, and to areas south and west of the capital.  Scenes of chaos
permeated the city straight after the earth shuddered. Traffic
jammed to a standstill before blanked-out stop lights, and anxious
people ran between vehicles as ambulances tried to make headway,
sirens squealing.

Mexico's president, Enrique Pena Neto, said on Twitter he had
ordered the evacuation of damaged hospitals "and the transfer of
their patients to other medical facilities," AFP relays. He was to
hold an emergency coordination meeting after overflying the
disaster zone.

Mexico is prone to earthquakes, being located in a seismically
active region. Its last major quake, on September 7, killed 96
people in the southern part of the country, AFP adds.

CYDSA SAB: S&P Assigns BB/B Corp. Credit Ratings, Outlook Stable
S&P Global Ratings said that it had assigned its global scale 'BB'
long-term and 'B' short-term corporate credit ratings on CYDSA,
S.A.B. de C.V. (CYDSA). The outlook is stable.

CYDSA has developed a strategic investment plan during the past
few years, which includes the construction of two cogeneration
plants, the redesign and renovation of its evaporated salt complex
in Coatzacoalcos, and the construction of a new chlorine and
caustic soda plant. The company is also expanding its business
offerings by starting operations of its hydrocarbon underground
storage segment in 2017.

The abovementioned factors have helped CYDSA maintain its position
as one of the leading producers of chemicals, petrochemicals, and
salt in Mexico. In particular, it's engaged in producing
refrigerant gases, caustic soda, chlorine, and edible and
industrial salt. CYDSA's products serve a wide array of
industries, as well as leading and recognized customers in their
respective markets, with more than 90% of its revenues generated
in Mexico. The company's competitive advantage is further
strengthened by its joint venture with Honeywell, which is a
global leader in producing specialty refrigerant gases. In Mexico,
CYDSA has the exclusive right to distribute Honeywell products
through its own logistic network. Honeywell's patents are not
accessible to other players, and therefore, are an entry barrier
in the market.

The company has developed a high degree of vertical integration
through the conversion of salt into caustic soda, chlorine, and
refrigerant gases. Furthermore, its operating processes have
significant savings through its cogeneration plants. It also has
the potential to sell--in the near term--surplus capacity to third
parties. This has allowed CYDSA to achieve profitability with
margins that surpass most of its peers. S&P expects EBITDA margins
to be around 24% and 28% in 2017 and 2018, respectively. The
aforementioned margin levels also result from an investment plan
started in 2013.

S&P said, "We expect a weighted average FFO-to-debt ratio for the
next three years of about 27%. This is a result of higher cash
flow generation and lower capex requirements, which strengthened
the company's cash balance and resulted in lower net debt levels.
Additionally, we expect CYDSA's EBITDA interest coverage and FFO
interest coverage ratios to remain well above 3.5x.

"The stable outlook reflects our expectation that CYDSA will post
a FFO-to-debt ratio of around 17%, an EBITDA interest coverage
ratio around 4.0x, and EBITDA margins well above 20% over the next
12 months. We also believe that the company will continue
implementing efficiency initiatives on its facilities and
developing strategic processes, while maintaining its market

"We could lower the ratings if additional leverage, coupled with
deteriorating operating performance, consistently weakens key
credit metrics; such that FFO to debt falls below 20% and EBITDA
interest coverage is below 3.0x on a consistent basis. These
metrics could result from large debt-financed strategic projects,
higher capex, a deterioration of cash flow generation from a
weaker pricing environment, or from lower-than-expected revenue.

"We could raise the ratings if the company consistently posts FFO
to debt above 30% and EBITDA interest coverage above 6.0x, which
could result from higher-than-expected prices of chlorine and
caustic soda, expanding operations, and revenue increases from
strategic projects."

P U E R T O    R I C O

BANESCO USA: Fitch Hikes IDR to BB- & Revises Outlook to Stable
Fitch Ratings has upgraded Banesco USA's (BNSC) Long-Term Issuer
Default Rating (IDR) to 'BB-' from 'B+' and Viability Rating (VR)
to 'bb-' from 'b+'. The Rating Outlook has been revised to Stable
from Positive.


The action reflects BNSC's sustained improvement in business and
financial performance, particularly core asset quality and
profitability. Further, management continues to execute well on
strategic initiatives to diversify the bank's loan and deposit
portfolios. BNSC's strong growth in recent years, its
concentration in commercial real estate (CRE) loans and South
Florida are viewed by Fitch as rating constraints.

Fitch believes BNSC's current and expected earnings are
satisfactory and in-line with the current rating. During 2016,
excluding a provision related to the asset-based loan discussed
further below, the company improved its ROA and ROE measures to
approximately 65 basis points (bps) and nearly 7%, respectively.
Fitch expects full-year 2017 core profitability measures to show
continued momentum driven by good efficiency, an asset sensitive
balance sheet, and execution on revenue growth initiatives. Over
the longer term, Fitch believes large gains in profitability are
limited, given the shift to more domestically-sourced deposits,
including online CDs, which are higher cost.

Fitch views BNSC's credit performance as commensurate with the new
rating level and continues to expect improvement over the near
term as the bank works down its OREO balances. Fitch calculates
BNSC's non-performing assets (NPAs; includes loans 90 days past
due and still accruing, accruing TDRs, and OREO) at 1.18% as of
second quarter 2017 (2Q17), down from 1.86% as of 2Q16. BNSC's NPA
performance is in line with similarly rated institutions.

In 4Q16, BNSC experienced a spike in non-accruing loans followed
by above average charge-offs in the first half of 2017 (1H17) due
to fraud that was uncovered in one asset-based loan. Fitch
believes this is an isolated event and asset quality measures
excluding this loan show continued improvement year-over-year.

Fitch's rating action also incorporates the view that the bank has
made significant improvements in risk management, controls, and
oversight across its major risk exposures. In April 2016, the
bank's Consent Order related to deficiencies in its compliance
with BSA and AML laws and regulations was lifted by the FDIC and
the Florida Office of Financial Regulation.

Fitch recognizes that BNSC's CRE concentration in local markets
such as South Florida tends to be above community bank averages.
In addition, the CRE concentration could drive modest volatility
in NPA measures, but at this stage Fitch believes credit losses
should be manageable in the context of the current rating level.

BNSC's capitalization is appropriate for its risk profile;
however, the lack of access to external capital is considered a
rating constraint. As of June 30, 2017, the bank's Fitch core
capital/risk-weighted assets ratio was 11.7% and its tangible
common equity/tangible assets ratio was 8.92%. Although Fitch
considers the capital base sufficient to support risks within the
business mix, a return to high loan growth coupled with limited
profitability may adversely impact capital ratios.

The company's liquidity profile is driven by its large core
deposit base that relies on a high volume of international
deposits, which make up about 50% of total deposits. The majority
of international funding is sourced from Venezuelan depositors who
have turned to U.S. banks as a safe haven. These deposits
typically have a very low attrition rate, limited rate
sensitivity, and provide a stable source of low-cost funding.

However, going forward, deposit inflows are expected to be limited
and the company may experience some outflows driven by rising
inflation in Venezuela. In an effort to reduce reliance on
Venezuelan funding, management has been working to grow domestic
deposits including strategic initiatives to leverage its
affiliation with Banesco companies abroad. BNSC has also
demonstrated growth within its new national online deposit
platform, providing an additional source of funding. Fitch views
the diversification of funding sources positively.

Fitch notes that there may be risks to BNSC's Venezuelan
depositors seeking other U.S.-based banking institutions in which
to deposit their monies in the event there are concerns regarding
BNSC or the Banesco Group. However, to date, BNSC has actually
benefited from its association with the Banesco brand, despite
volatility in Venezuela, as demonstrated by its relatively stable
deposit base overall. Fitch notes that depositor behavior has thus
far been manageable.

In Fitch's view, BNSC's ratings are not immediately affected by
deteriorating economic conditions in Venezuela and their impact on
Banesco Banco Universal (BBU; VR 'cc') in Venezuela. Although BNSC
is affiliated with the Banesco Group and shares common ownership,
BNSC does not have a holding company structure in the U.S.
therefore there is no direct rating linkage to BBU in Venezuela.

Fitch recognizes that BNSC benefits from the "Banesco" brand, its
strong recognition in Latin America, and BBU's market-leading
position in Venezuela. However, in Fitch's opinion, contagion risk
from BBU, which shares the same brand, is limited at this time.


BNSC has a Support Rating (SR) of '5' and Support Rating Floor
(SRF) of 'NF'. In Fitch's view, BNSC is not systemically important
and, therefore, the probability of support is unlikely. The IDRs
and VRs do not incorporate any support. Historically, BNSC's
principal shareholders have demonstrated a willingness to provide
capital; however, Fitch's rating analysis does not assume capital
support from the shareholders.


BNSC's uninsured deposit ratings are rated one-notch higher than
the company's IDR because U.S. uninsured deposits benefit from
depositor preference. U.S. depositor preference gives deposit
liabilities superior recovery prospects in the event of default.


Fitch views BNSC's ratings as well-situated at 'BB-' and believes
rating upside is limited given its asset, revenue and geographic

Over the longer term, however, as the franchise continues to
mature, increased loan, deposit, geographic, and/or business line
diversity could have positive implications provided the company
demonstrates continued enhanced risk management practices and a
good credit loss track record while maintaining earnings and
capital levels that support positive ratings momentum.

The ratings incorporate a moderate level of organic growth. Should
BNSC exhibit aggressive organic loan growth relative to peers,
negative ratings pressure could build. This risk is further
accentuated by Banesco's already significant growth in commercial
loans through a relatively benign credit environment.

Fitch believes that asset quality improvement will moderate going
forward and could even reverse nominally as credit metrics are
expected to normalize industry-wide. However, if BNSC's credit
trends reverse materially beyond peer levels, particularly if
large loans become impaired, negative rating action could be

Given BNSC's ties to the Banesco Group and considerable Venezuelan
deposit base, if material adverse changes in deposit behavior
occur, particularly as a result of a Venezuelan sovereign default,
negative rating action could ensue.


BNSC's SR and SRF are sensitive to Fitch's assumption around
capacity to procure extraordinary support in case of need. Since
BNSC's SR and SR Floor are '5' and 'NF', respectively, there is
limited likelihood that these ratings will change over the
foreseeable future.


The ratings of long- and short-term deposits issued by BNSC are
primarily sensitive to any change in BNSC's Long- and Short-Term


Banesco USA was established in 2006 by the principal shareholders
of the Banesco Group and provides traditional banking services,
primarily real estate financing, to retail clients as well as to
small-to-medium-sized companies. Services are offered via branches
in Miami-Dade County, Broward County, and San Juan, Puerto Rico.
Banesco USA is based in Coral Gables, FL.

Fitch has taken the following actions:

Banesco USA (BNSC)
-- Long-Term IDR upgraded to 'BB-' from 'B+'; Outlook revised to
    Stable from Positive;
-- Short-Term IDR affirmed at 'B';
-- Long-term deposits upgraded to 'BB' from 'BB-';
-- Short-term deposits affirmed at 'B';
-- Viability Rating upgraded to 'bb-' from 'b+';
-- Support affirmed at '5';
-- Support Floor affirmed at 'NF'.

BAILEY'S EXPRESS: Allowed to Continue Using Cash Until Sept. 30
Judge Ann M. Nevins of the U.S. Bankruptcy Court for the District
of Connecticut has entered a third interim order authorizing
Bailey's Express, Inc., to use up to $113,821 in funds, which
constitute cash collateral of Bankwell Bank, solely to fund the
types and corresponding amounts of itemized expenditures contained
in the budget.

The Debtor's authority to spend cash collateral without further
order of the Court issued after notice and hearing or the written
consent of Bankwell will automatically expire upon the soonest to
occur of (a) September 30, 2017 at 5:00 p.m., or (b) the failure
by the Debtor to materially comply with any provision of third
interim Order regardless of whether the Debtor has expended the
entire amount, which failure is not remedied within three business
days after receiving written notice from Bankwell or SAIA, Inc. of
such failure.

Bankwell is granted a first lien to secure an amount of Bankwell's
prepetition claims equal to (a) the amount of Cash Collateral
actually expended by the Debtor and (b) an amount equaling the
aggregate decline in the value of the Bankwell Prepetition
Collateral. In addition to the Replacement Lien, Bankwell will
have a priority claim in an amount equal to the amount of cash
collateral actually expended by the Debtor pursuant to the Third
Interim Order.

Likewise, SAIA, Inc., is granted, a lien, subordinate to the
security interests held by Bankwell, on the DIP Collateral, but
only to the extent that SAIA successfully establishes that SAIA is
entitled to impose an interline trust on cash collected by the

A further hearing has been set to consider continued use of cash
collateral on Sept. 27, 2017 at 2:30 p.m.

A full-text copy of the Order, dated Aug. 31, 2017, is available

                     About Bailey's Express

Headquartered in Middletown, Connecticut, Bailey's Express -- is a Connecticut-based less than
truckload carrier.  It provides service across the nation and is
dedicated in helping Connecticut, Massachusetts and Rhode Island
companies market their products throughout the U.S. including
Hawaii and Alaska.  It has distribution points in Charlotte,
Dallas, Denver, Easton, Fontana, Indianapolis, Jacksonville,
Memphis, Neenah, Phoenix, Salt Lake City and Toledo.  It also
provides service to Mexico, Puerto Rico & Canada.

Bailey's Express filed for Chapter 11 bankruptcy protection
(Bankr. D. Conn. Case No. 17-31042) on July 13, 2017, estimating
its assets and liabilities at between $1 million and $10 million.
The petition was signed by David Allen, chief financial officer.

Judge Ann M. Nevins presides over the case.

Elizabeth J. Austin, Esq., and Jessica Grossarth Kennedy, Esq., at
Pullman & Comley, LLC, serves as the Debtor's bankruptcy counsel.

No creditors' committee has yet been appointed in the case.

HUMANA HEALTH: S&P Lowers CCR to 'BB+', Outlook Negative
S&P Global Ratings said it lowered its long-term counterparty
credit and financial strength ratings on Humana Health Plans of
Puerto Rico Inc. (HHPPR) to 'BB+' from 'BBB'. At the same time,
S&P revised the outlook to negative from stable.

"The downgrade reflects the significant strain on HHPPR's
capitalization and interest coverage due to weak operating
performance in 2016. We believe the company continues to face
headwinds that make it unlikely to be able to replenish capital in
the next 12 to 18 months. The negative outlook reflects our belief
that HHPPR will face ongoing execution risk in maintaining or
improving capital moderately beyond current levels. Increased
medical cost trends along with weak economic conditions in Puerto
Rico continue to hurt operating performance, leading to growing
pressure on interest coverage.

At year-end 2016, HHPPR reported a net loss of $32 million with an
EBIT adjusted return on revenue (ROR) of negative 10.2%. Earned
premiums decreased by $105.6 million due to a 20% drop in
membership mainly associated with a change in benefits offered in
the Medicare business. HHPPR also saw an increase in its medical
loss ratio to 95.1% in 2016 from 88.2% in 2015 due to higher
claims volume and increased utilization by remaining members. As a
result of eroding performance, consolidated capital at year-end
2016 dropped to the 'A' redundancy level from 'AAA' at year-end
2015 per S&P's insurance risk-based capital (RBC) model, with
total adjusted capital (TAC) falling to $43 million from $76
million. As of March 31, 2017, HHPPR reported adjusted EBIT of
negative $6 million and an ROR of negative 7.6%. As HHPPR
continues to bolster its operations, we expect profitability to
remain constrained and capital redundancy to diminish further to
the 'BBB' level.

While HHPPR has no debt outstanding, its financial leverage and
interest coverage account for our incorporation of operating
leases. Its financial leverage of 15% at year-end 2016 is
consistent with our current expectations. Due to its weak
operating performance in 2016 and projection for break-even
performance, however, interest coverage has fallen materially. S&P
said, "We, therefore, are revising our assessment of financial
flexibility to less than adequate. If operating performance erodes
further from our current projections, diminished financial
flexibility could constrain the financial risk profile and
pressure the ratings.

"The negative outlook on HHPPR reflects our expectation that the
company will continue to face performance headwinds and experience
capital and earnings volatility, elevated by its geographic
concentration in Puerto Rico and small capital base. We expect
this to result in break-even earnings in the next 12 months and
for capital to be minimally redundant at the 'BBB' level per our
risk-based capital (RBC) model.

"We may lower our ratings in the next 12 months if negative
performance trends persist, resulting in capital adequacy
declining below the 'BBB' level per our RBC model or a revaluation
of HHPPR's business risk profile; if operating performance is
negative for a sustained period leading to interest coverage below
1.5x and further erosion in financial flexibility; or if the
absolute level of TAC drops below $25 million.

"We may affirm our ratings in the next 12 months if HHPPR reports
positive operating performance and can demonstrate capital and
earnings stability with capital adequately maintained at the 'BBB'
level and TAC above roughly $40 million."

TOYS "R" US: Collapses Into Bankruptcy
Bloomberg News' Dawn McCarty, Tiffany Kary and Daniela Wei report
that Toys "R" Us Inc., the ultimate toyland for a generation of
postwar baby boomers, filed for bankruptcy thanks to a crushing
debt load from a buyout and relentless competition from warehouse
and online retailers.

Bloomberg News says the retailer, which has 1,600 stores in 38
countries, said its hand was forced after an attempt to
restructure out of court sparked a press report about a potential
bankruptcy, spooking critical vendors and credit insurers. But it
intends to make the best of the situation and revive its business
in time for the holiday shopping season.

"Chapter 11 was certainly not the company's preferred outcome,"
the report quoted Chief Executive David Brandon as saying in a
court filing.  "The timing of all of this could not have been
worse."  He cited the immediate need to build inventory for the
holiday season, which accounts for 40 percent of annual revenue.
Thanks to a new $3.1 billion operating loan, the company plans to
stabilize operations and reopen supply channels while in
bankruptcy, he said.

According to the report, Mr. Brandon said the reorganization will
focus on investment in marketing, technology, and an in-store
experience that will help it compete in the new environment.  The
bankruptcy filing in Richmond, Virginia, estimated the company has
more than $5 billion in debt, which it pays around $400 million a
year to service.

Much of that is the legacy of a $7.5 billion leveraged buyout in
2005 in which Bain Capital, KKR & Co. and Vornado Realty Trust
loaded the company with debt to take it private, Bloomberg News
relays.  Since then, the Wayne, New Jersey-based chain has
struggled to dig itself out.

The $3 billion loan, from a JPMorgan Chase & Co.-led syndicate
that includes some existing lenders, will fund operations while it
restructures the liabilities, according to a company statement,
reports Bloomberg News.  The funding is subject to court approval.

The report further notes that the company doesn't plan to close
stores and says its locations across the globe will continue
normal operations. It's 1,600 stores, which include Babies "R" Us,
are complemented by sales through websites including

Operations outside of the U.S. and Canada, including about 255
licensed stores, are not part of the Chapter 11 filing, adds
Bloomberg News.  A Canadian unit intends to seek protection in
parallel proceedings.  In Australia, Toys "R" Us plans to add
another five stores to its existing 39 by Christmas, said Jessica
Donovan, a local marketing manager, the report relays.

                        About Toys "R" Us

Toys "R" Us, Inc. is an American toy and juvenile-products
retailer founded in 1948 and headquartered in Wayne, New Jersey,
in the New York City metropolitan area.

Merchandise is sold in 880 Toys "R" Us and Babies "R" Us stores in
the United States, Puerto Rico and Guam, and in more than 780
international stores and more than 245 licensed stores in 37
countries and jurisdictions.  Merchandise is also sold at
e-commerce sites including and

On July 21, 2005, a consortium of Bain Capital Partners LLC,
Kohlberg Kravis Roberts and Vornado Realty Trust invested $1.3
billion to complete a $6.6 billion leveraged buyout of the
company. Toys "R" Us is now a privately owned entity but still
files with the Securities and Exchange Commission as required by
its debt agreements.

The Company's consolidated balance sheet showed $6.572 billion in
assets, $7.891 billion in liabilities, and a stockholders' deficit
of $1.319 billion as of April 29, 2017.

The Company and its subsidiaries posted a net loss of $163 million
on $2.206 billion of net sales for the 13 weeks ended April 29,
2017, compared with a net loss of $125 million on $2.319 billion
of net sales for the 13 weeks ended April 30, 2016.

T R I N I D A D  &  T O B A G O

PETROTRIN: TTTI Calls for Action on Oil Scandal
Trinidad Express reports that the Trinidad and Tobago Transparency
Institute (TTTI) has called for a speedy conclusion to allegations
of massive corruption involving State-owned Petroleum Co. of
Trinidad & Tobago and a lease operator.

In a statement, the TTTI noted with concern reports arising out of
an internal auditor's report and pointing to "allegedly corrupt
transactions involving millions of dollars over a period of
several months," the report relays.

The issue has dominated the public's attention since Opposition
Leader Kamla Persad-Bissessar announced, at a United National
Congress (UNC) meeting two Sundays ago, that the audit showed
Petrotrin was defrauded of some $80 million, allegedly by A&V Oil
and Gas Ltd, the report notes.

Persad-Bissessar claimed the audit found that A&V had billed
Petrotrin for oil never produced, the report adds.

As reported in the Troubled Company Reporter-Latin America on
April 28, 2017, Moody's Investors Service downgraded Petroleum Co.
of Trinidad & Tobago corporate family rating and senior unsecured
debt ratings to B1 from Ba3. Simultaneously, Moody's lowered
Petrotrin's Baseline Credit Assessment ("BCA") to caa1 from b3.
The outlook on the ratings is stable. The rating actions are
linked to Moody's April 25, 2017 downgrade of the government of
Trinidad & Tobago bond ratings to Ba1 from Baa3, with a stable


LATAM: Hurricane Maria Headed for Virgin Islands and Puerto Rico
---------------------------------------------------------------- reports that after causing devastation in
Dominica and pounding Guadeloupe, a "potentially catastrophic"
Category 5 Hurricane Maria is now headed for the Virgin Islands
and Puerto Rico.

At 8 a.m., Sept. 19, Hurricane Maria carrying maximum sustained
winds near 160 miles per hour, was about 85 miles west of
Guadeloupe and 170 miles east of St Croix in the US Virgin
Islands, the report notes.  It was moving towards the west
northwest at 9 miles per hour, the report relays.

The National Hurricane Centre (NHC) in Miami said that on the
forecast track, the eye of Maria will move over the northeastern
Caribbean Sea Sept. 19, and approach the Virgin Islands and Puerto
Rico Sept. 20 and Sept. 21.

"Maria is a potentially catastrophic Category 5 hurricane on the
Saffir-Simpson Hurricane Wind Scale. Some fluctuations in
intensity are likely during the next day or two, but Maria is
forecast to remain an extremely dangerous Category 4 or 5
hurricane while it approaches the Virgin Islands and Puerto Rico,"
the NHC said, the report relays.

The report discloses that swells generated by Maria are still
affecting the Lesser Antilles.  Forecasters say hurricane
conditions will continue to spread throughout portions of the
hurricane warning area in the Leeward Islands,
relays.  Hurricane conditions should spread through the remainder
of the hurricane warning area, the report notes.

The NHC added that a dangerous storm surge accompanied by large
and destructive waves will raise water levels by as much as 7 to
11 feet above normal tide levels in the hurricane warning area
near where the center of Maria moves across the Leeward Islands
and the British Virgin Islands, the report relays.

The report relays that Maria is also expected to produce the
following rain accumulations through Thursday Sept. 21, the NHC

-- Central and southern Leeward Islands - 10 to 15 inches;
isolated 20 inches

-- US and British Virgin Islands - 10 to 15 inches; isolated 20

-- Puerto Rico - 12 to 18 inches; isolated 25 inches

-- Northern Leeward Islands from Barbuda to Anguilla - 4 to 8
inches; isolated 10 inches

-- Windward Islands and Barbados - 2 to 4 inches; isolated 6

-- Eastern Dominican Republic - 4 to 8 inches; isolated 12 inches


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

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