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

          Wednesday, September 27, 2017, Vol. 18, No. 192


A N T I G U A  &  B A R B U D A

ANTIGUA & BARBUDA: Should Find Alternative Funding to Rebuild


ARCOS DORADOS: Moody's Hikes Rating on US$347MM Sr. Notes to Ba3
LA RIOJA: Fitch Affirms B Long-Term IDR; Outlook Stable
PROVINCIA SEGUROS: Moody's Affirms B3 IFS Rating; Outlook Now Pos.


BARBADOS: Tax Sapping Life Out of Renewable Energy Sector


SIRIUS INTERNATIONAL: Fitch Rates SEK2.75BB Subordinated Notes BB+


AEGEA FINANCE: Moody's Rates US$400MM Senior Unsecured Notes Ba2
BANCO VOTORANTIM: Moody's Affirms LT LC Deposit Rating Ba2


DOMINICA: Urgent Need for Food and Water
DOMINICA: Death Toll Rises in Country Following Hurricane

D O M I N I C A N   R E P U B L I C

DOMINICAN REP: US$16.98BB Budget Boosts Social Programs, Economy


HONDURAS: Moody's Ups Foreign & Local Currency Issuer Rating to B1


CUAUTLA: Moody's Assigns Caa1 Issuer Rating; Outlook Negative


TERMINALES PORTUARIOS: S&P Affirms 'BB' Rating on $110MM Sr. Notes

P U E R T O    R I C O

FARMACIAS FREDDY: Unsecureds to Get 23.14% Over 24 Months
RISE ENTERPRISES: Seeks Approval of Cash Collateral Agreement
PUERTO RICO ELECTRIC: "Rolon" Suit Seeks to Certify Class


URUGUAY: Takes Stand Against Military Intervention in LatAm


VENEZUELA: Vows to Defend Itself Against Illegal Attacks by Trump


LATAM: CDEMA Stretched Thin After Irma And Maria

                            - - - - -

A N T I G U A  &  B A R B U D A

ANTIGUA & BARBUDA: Should Find Alternative Funding to Rebuild
The Daily Observer reports that an outspoken Barbadian hotelier is
suggesting that the Antigua and Barbuda government should look for
creative means to fund the rebuilding efforts on Barbuda rather
than incurring an "enormous expenditure" that will eventually have
to be repaid through taxes.

Adrian Loveridge, the joint owner of Peach and Quiet Hotel in
Barbados, said a casino billionaire, James Packer, and his
Hollywood business partner, Robert De Niro, had planned to
construct a $US250 million resort in Barbuda before the passage of
Hurricane Irma and has since pledged to assist in the rebuilding
efforts on the sister island after the storm, according to The
Daily Observer.

Mr. Packer and Mr. De Niro are planning to develop the resort at
the site of the former K Club, which was once Princess Diana's
Caribbean hideaway, the report notes.

Mr. Loveridge said the government should take advantage of this
and other opportunities as it seeks to restore Barbuda, the report

"Clearly, as developers, they would not want to build a luxury
resort in a devastated area.  So, it's a case of working with
every sector to get it right.  James Packer and Robert De Niro
have an enormous amount of money, and that would be one of the
first issues I would look at," Mr. Loveridge said during an
interview on Observer radio's "Big Issues" program, the report

"At this stage, I would be speaking to Guyana to see how hardwood
could be transported into Barbuda at a subsidized rate," Mr.
Loveridge said.  "I would also be looking at assistance from that
country and volunteer groups from around the world that would be
willing to send people to help clean up the devastation," Mr.
Loveridge added, notes the report.

More than 95 percent of the properties in Barbuda were damaged by
Hurricane Irma, which caused widespread damage across the
Caribbean, the report relays.

A week or so after the Category 5 storm struck, the National
Office of Disaster Services (NODS) estimated that the damages to
homes and buildings in Barbuda amounted to US $200 million, a
price tag that is expected to increase over time, the report adds.


ARCOS DORADOS: Moody's Hikes Rating on US$347MM Sr. Notes to Ba3
Moody's Investors Service has upgraded Arcos Dorados' (AD)'s
Corporate Family Rating (CFR) and senior unsecured ratings to Ba3
from B1. The outlook for all ratings remains positive.

Ratings Upgraded:

Issuer: Arcos Dorados Holdings Inc.

- US$347 million Senior Unsecured Notes due 2023: Ba3 from B1

- US$265 million new Senior Unsecured Notes due 2027: Ba3 from B1

Outlook: Positive


The upgrade of AD's ratings reflects the marked recovery in its
performance and credit metrics over the last few quarters, mainly
as a consequence of the macroeconomic stabilization in its most
relevant operating market, Brazil. The rating also incorporates
its solid capital structure, expectation for positive free cash
flow generation and a sound liquidity position with no significant
debt services in the next years. The company will continue to
benefit from increased operating efficiency and an adequate debt
amortization profile as well as a manageable capital spending
structure expected for 2018 and 2019.

For the twelve months ended June 30, 2017 (LTM), revenues reached
USD3.2 billion, up 10.4%, while adjusted operating margin was
8.7%, a 120bps improvement, both when compared to the same period
of last year. This operational improvement was mainly driven by
the 3-year strategic plan, which included the reduction of cost
structure and the improvement of operating efficiencies, through
the reduction in labor costs coming from the forecasting and
scheduling system introduced in October 2015, in Brazil. In
addition, the company has successfully issued a new USD265 million
senior unsecured bond due 2027 back in April that has extended its
debt amortization profile. Arcos Dorados' leverage, as measured by
Moody's adjusted debt-to-EBITDA, has been improved from 5.2 times
in fiscal year 2014 to 3.6 times as of the last twelve months
ended June 30, 2017. Going forward, Moody's expects an adjusted
leverage ratio of about 3.0-3.5 for 2017 and 2018.

Arcos Dorados' ratings continue to be supported by its status as
McDonald's master franchisee in Latin America, which affords it a
prominent market position and extensive geographic footprint in
the region. Benefiting from McDonald's solid brand name and proven
operating procedures as a master franchisee agreement, Moody's
expects Arcos Dorados to continue to pursue growth prospects and
consolidate its earnings base across the region.

On the other hand, Arcos Dorados' currency exposure, relatively
low interest coverage and net profit, concentration of cash flows
in a limited number of markets with high dependency on its
Brazilian subsidiary continue to constrain the ratings. Arcos
Dorados is also exposed to Argentina's economy and subject to
certain minimum investment requirements and financial covenants
under its Master Franchise Agreements (MFAs). More recently, Arcos
Dorados reached an agreement with McDonald's Corporation in which
the company committed to open 180 new restaurants and to reinvest
USD292 million in existing restaurants, totalizing about USD500
million of capital expenditures for the period 2017-2019.

Arcos Dorados' liquidity is currently strong. As of the last
twelve months ended June 30, 2017, the company's cash and
equivalents position amounted to USD238 million while adjusted
short term debt amounted to USD156 million, including USD146
million of capital leases. Accordingly, cash and marketable
securities over adjusted short term debt ratio rose to 152% from
37% when compared to December 2015. With the successful USD265
million issuance in April 2017, Arcos Dorados has extended most of
its debt maturities to 2023 and further.

The positive outlook reflects Moody's expectations for a gradual
recovery in AD's operating environment in Brazil and Argentina and
that the company will be able to sustain a good liquidity profile
and strong credit metrics in the next 12-18 months.

An upgrade would be considered in case of continuous improvement
in operating performance, including sustained recovery in traffic
and average check in real terms. An upgrade would also require AD
to sustain lease-adjusted debt to EBITDA below 3.5 times (3.6
times as of the LTM ended June 2017) and EBIT to interest expense
trending close to 2.5 times (2 times as of the LTM ended June

Factors that could result in a downgrade include a deterioration
sustained weakening of same store sales or earnings, and a
deterioration in credit metrics with lease-adjusted debt to EBITDA
approaching 5 times or EBIT coverage of interest approaching 1.5
times. A deterioration in liquidity for any reason could also
pressure the ratings.

The principal methodology used in these ratings was Restaurant
Industry published in September 2015.

Headquartered in Buenos Aires, Argentina, Arcos Dorados Holdings
Inc. is the leading quick service restaurant operator in Latin
America and the Caribbean and McDonald's largest franchisee
globally in terms of systemwide sales and restaurant count, with
around 4.5% of McDonald's total systemwide restaurants as of June
2017. Arcos Dorados began operating in August 2007 when it
acquired most of McDonald's operations in Latin America and the
Caribbean in a leveraged buyout led by the company's controlling
shareholder Woods Staton, who is also the company's current
Executive Chairman. For the last twelve months ended June 30 2017,
the company's revenues reached USD3.2 billion.

LA RIOJA: Fitch Affirms B Long-Term IDR; Outlook Stable
Fitch Ratings has affirmed the Province of La Rioja (PLR),
Argentina's Long-Term Foreign and Local Currency Issuer Default
Ratings (IDRs) at 'B'. The Rating Outlook is Stable. Fitch has
also affirmed the issue rating on La Rioja's senior unsecured bond
issuance of USD200 million at 'B'. The ratings are capped by
Argentina's Country Ceiling.


La Rioja's fiscal performance, which is in line with Fitch's
expectation, supports the affirmation of the province's ratings.
As verified across Argentinian provinces, there was some worsening
in 2016 when operating margins reached 7.7%, negatively impacted
by higher personnel expenditures due to higher inflation. The
ratings are based on the province's better than average debt
metrics when compared with local and international peers and
adequate operating margins.

La Rioja is reliant on federal shared tax revenue (co-
participation regime), which limits its fiscal flexibility and
ability to control its own revenue sources, but at the same time
endows the revenue system with stability and predictability
through a foundation of broad-based national taxes. Fitch Ratings
does not believe any subnational entity to be rated higher than
the sovereign, as regional governments' access to foreign currency
is not deemed stronger than the central government's access.

Operating margins reached an annual average of 11.2% during the
last five years. Fitch expects PLR will be able to maintain an
adequate operating margin, provided federal transfers, or national
treasury contributions, are met by the recent changes in current
expenditure. Main fiscal performance pressure stems from personnel

Considering the USD200 million bond issuance in February 2017,
direct debt to current balance reached the equivalent to 5.6
years, still better than the average of peers rated 'B' at 13.6
years. Debt sustainability, or debt service/operating balance, of
19.2% is also better than peers' at 48.6%. Fitch notes PLR does
not have short-term debt concentration and is going to fully use
the bond issuance proceeds for investments; however, currency
exposure increased with the bond issuance representing around 69%
of total debt.

PLR's economy has a low value-added and concentrated economy
structure, comparing poorly with other local economies. Main
economic activities are linked to the public sector in addition to
the construction sector, which is in an expansionary trajectory.
PLR does not benefit from oil-related royalties and is negatively
impacted by the rising competition with foreign trade, especially

PLR benefits from having transferred pension obligations to the
federal government. As a result, the province does not handle
pension deficits. Fitch believes companies owned by the province
do not pose a significant liability and the largest ones have
posted positives results. PLR's net cash balance represented
around 14% of operating revenues in 2016. Moreover, the province
is able to alternate deficits with surpluses during the last five
years. In 2016, floating debt represented 7.7% of PLR's operating
revenue (5.8% in 2015). In Fitch's opinion, this suggests an
adequate liquidity position.


Positive Rating Actions: PLR's Issuer Default Rating should move
in tandem with Argentina's sovereign ratings. An upgrade of the
sovereign IDR could lead to an upgrade in PLR's rating.

Negative Rating Actions: A downgrade of Argentina's IDR could lead
to a negative rating action.

Any change in the rating of the province will lead to an
equivalent effect on the bond rating.

PROVINCIA SEGUROS: Moody's Affirms B3 IFS Rating; Outlook Now Pos.
Moody's Latin America Agente de Calificacion de Riesgo, S.A.
(Moody's) has affirmed its ratings on Provincia Seguros (insurance
financial strength (IFS) at B3 on the global local currency scale,
and at on Argentina's national scale) but revised the
outlook for the insurer's global scale rating to positive, from
stable. The outlook of the company's national scale rating remains
stable. The overall outlook on the company's ratings is positive


According to Moody's, the positive outlook on Provincia Seguros'
B3 global rating primarily reflects the company's accelerated
progress in remediating its solvency margin deficit by December
2019. As of June 30, 2017, the company reported a surplus of ARS
48 million in its reserve-coverage with admitted assets, which
well exceeds the original projected deficit of ARS 315 million. In
terms of solvency margin, the company presented a deficit of ARS
455 million, which was also more favorable than the original
projected deficit of ARS 541 million as of that date.

Notwithstanding the positive outlook on the global scale ratings
of Provincia Seguros, the outlook on the corresponding national
scale rating remains stable to reflect the likelihood that the
correspondence between Argentine national scale and global scale
ratings will be recalibrated if and when the sovereign is upgraded
such that most global scale ratings will correspond to lower
Argentine national scale ratings than is currently the case.
Consequently, even if Provincia Seguros' global scale rating were
to be upgraded, its national scale rating would not likely to be

Moody's explained that the affirmation of Provincia Seguros'
rating reflects the company's adequate market position, as well as
competitive advantages provided by its access to diversified
product distribution channels and synergies maintained with its
parent bank, Banco de la Provincia de Buenos Aires. Moody's went
on to say that -- in part as a result of actions taken by the
company's new management team since 2016 -- Provincia Seguros'
underwriting performance improved significantly during last fiscal
year ended June 30, 2017, with a combined ratio of 102%, an
improvement relative to its 5-year average of 109%. The rating
agency said that, given the close linkages between the company's
credit profile and that of Argentina's sovereign (B3 positive), an
upgrade of Argentina's sovereign rating could prompt an upgrade of
Provincia Seguros' global scale rating.

Offsetting these positive considerations are the company's still
weak capitalization, as reflected by its very high gross
underwriting leverage, and underwriting losses - although lower
than in previous years - which have resulted in Provincia Seguros
becoming highly dependent on investment returns. Furthermore, the
company's high business concentration in clients affiliated to the
Province of Buenos Aires (B3 positive) remains a key challenge for
the company.

Among factors that could lead to an upgrade of the companies'
ratings are the following: 1) upgrade of Argentina's government
bond rating; 2) sustained improvement in capitalization (i.e.
elimination or substantial reduction of the solvency margin
deficit; or 3) sustained improvement in underwriting results (i.e.
combined ratios consistently below 100%). Conversely, the
company's ratings could be downgraded in case of: 1) failure to
comply with regulatory capital requirements; 2) sustained weak
profitability; or 3) a downgrade of Argentina's sovereign rating.

Provincia Seguros is 60% owned by the major Argentine financial
services group, Grupo Banco Provincia S.A., which in turn is owned
by the second-largest bank in Argentina, Banco de la Provincia de
Buenos Aires. Grupo Banco Provincia S.A. is engaged in multiple
financial services segments and it also maintains a presence in
the life insurance industry through Provincia Seguros de Vida, and
in the monoline workers' compensation segment through Provincia
Seguros ART.

Based in Buenos Aires, Argentina, Provincia Seguros reported net
income of ARS 307 million and gross premiums of ARS 7.2 billion
for the fiscal year ended June 30, 2017. As of that date,
shareholders' equity was ARS 668 million, and total assets were
ARS 7.0 billion.


BARBADOS: Tax Sapping Life Out of Renewable Energy Sector
--------------------------------------------------------- reports that the Barbados Government's
controversial hike in the National Social Responsibility Levy
(NSRL) has had the effect of sapping vital energy out of this
island's renewable sector, a top official has reported.

Vice President of Barbados Renewable Energy Association (BREA)
Jerry Franklin told reporters during a BREA news conference that
with the increase in the tax from two per cent to ten per cent on
July 1, private sector investment in renewable energy systems had
slowed noticeably over the past two months, according to

"The sector has definitely slowed.  It is definitely feeling the
impact," he said of the whopping 400 per cent increase in the NSRL
that was announced in the May 30 Budget by Minister of Finance
Chris Sinckler, the report notes.

The report relays that with some firms currently unable to absorb
the tax increase and left with no choice but to pass on the
additional costs to the consumer, Mr. Franklin pointed out that
the sector was still not considered a necessity, which affected
the overall investment.

And while he could not say exactly what the fallout has been
either job wise or in dollar terms, Mr. Franklin said the sector
was definitely witnessing a slowdown, which was forcing companies
to make changes to their way of doing business, the report notes.

"This sector, like any other sector, is trying to make the
adjustment, but of course it is a scenario where the consumer has
the power.  The consumer makes the decision if they are going to
invest or not and the renewable energy space is still not a
critical necessity for most people," he explained, the report

"It [renewable energy] is a good investment for some people and
where it makes sense for some people where they can definitely see
a real reduction in their [electricity] bill, they make the
investment. But I think the general populous right now is down to
necessity," Mr. Franklin stressed, the report says.

Coupled with the immediate tax woes, BREA's President Aidan Rogers
complained that Government was still dragging its feet on the
overall development of the sector, the report notes.

For instance, he said, Cabinet was yet to approve and implement
recommendations coming out of the 2009 Inter-American Development
Bank-led Sustainable Energy Framework study for Barbados, the
report discloses.

In addition, Rogers said there was an urgent need for the
formalization of the National Sustainable Energy Policy, as well
as the extension of the licensing period for individuals selling
power to the utility provider under the Renewable Energy Rider
(RER) program, the report relays.

And while a task force was established about two years ago and a
draft sustainable policy report prepared and approved by Cabinet,
it is yet to be implemented, the BREA president further lamented,
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


SIRIUS INTERNATIONAL: Fitch Rates SEK2.75BB Subordinated Notes BB+
Fitch Ratings has assigned a 'BB+' rating to Sirius International
Group, Ltd.'s (Sirius) SEK2.75 billion issue (approximately USD340
million) of floating rate subordinated notes due 2047.


Fitch views Sirius' new subordinated debt as dated deferrable debt
hybrid securities, which receive 0% equity credit (100% debt
treatment) in evaluating financial leverage under Fitch's hybrid
securities rating methodology. The new securities are expected to
receive 100% credit in Fitch's capital adequacy ratio as Tier 2
qualifying regulatory capital by the Bermuda Monetary Authority. A
notching of two is applied relative to the Sirius Issuer Default
Rating (IDR), which is based on two for a baseline recovery
assumption of 'poor' and zero for non-performance risk assessment
of 'minimal'.

The company expects to use the net proceeds from the offering to
replace its existing USD250 million noncumulative perpetual
preference shares and for general corporate purposes.

Following the debt issuance and expected repurchase of existing
preference shares, the pro forma financial leverage ratio (FLR)
increases to approximately 24.5% from 13.5% at June 30, 2017. This
increase reflects the 0% equity credit assigned to the new
securities in the FLR compared to 100% equity credit assigned to
the existing noncumulative perpetual preference shares, as well as
the higher total amount of outstanding debt.


Key rating sensitivities that could lead to an upgrade include
seasoning of ownership by China Minsheng Investment Group Corp.,
Ltd. (CMIG) without any adverse consequences or perceived
weakening in CMIG's credit profile, and improvement in the
business profile while continuing to produce favorable operating
results in the challenging reinsurance environment.

Key rating sensitivities that could lead to a downgrade include:
-- Deterioration in reinsurance sector fundamentals or
    consolidation in the reinsurance landscape that Fitch views as
    weakening Sirius's competitive position, business profile or
    overall profitability;
-- Sustained combined ratios above 104% or operating ratios above
-- Sizable deterioration in capitalization;
-- Significant changes to the operating profile or investment
    portfolio that increases risk or reduces liquidity;
-- A financial leverage ratio maintained above 32%.


Fitch has assigned the following rating:

Sirius International Group, Ltd.
-- SEK2.75 billion floating rate subordinated notes due 2047

Fitch currently rates Sirius and its subsidiaries as follows:

Sirius International Group, Ltd.
-- Long-Term IDR 'BBB';
-- $400 million 4.6% senior notes due Nov. 1, 2026 'BBB-';
-- $250 million non-cumulative perpetual preference shares 'BB+'.

Sirius Bermuda Insurance Company Ltd.
Sirius International Insurance Corporation
Sirius America Insurance Company
-- Insurer Financial Strength 'A-'.


AEGEA FINANCE: Moody's Rates US$400MM Senior Unsecured Notes Ba2
Moody's Investors Service assigned a Ba2 rating on the global
scale to the up to US$400 million 7-year senior unsecured Notes to
be issued by Aegea Finance S.a r.l. guaranteed by AEGEA Saneamento
e Participacoes S.A. At the same time, Moody's assigned a Ba1
global scale Corporate Family Rating (CFR) to AEGEA. The outlook
is negative. This is the first time that Moody's has rated the
company and its securities.

The company will use the proceeds of the Note offering to repay an
existing BRL 320 million loan with the InterAmerican Development
Bank and debt of its subsidiaries. AEGEA will also use proceeds to
support capital investments, as well as to cover transaction fees
and related expenses.

AEGEA is a holding company operating 44 long term water and sewage
concessionaires in various municipalities across ten Brazilian
States and serving over 5.4 million customers. The company started
operations in 2010 and is one of the largest private water
utilities in Brazil, with around 24% of Brazil's market share.
AEGEA's shareholders are Equipav (not rated, 71.0% stake), the
Government of Singapore's Investment Corporation "GIC" (not rated,
18.7% stake) and the International Finance Corporation - IFC (Aaa,
10.3% stake).

Issuer: Aegea Finance S.a r.l.


-- US$400M Senior Unsecured Regular Bond/Debenture, Assigned Ba2

Outlook Actions:

-- Outlook, Assigned Negative

Issuer: AEGEA Saneamento e Participacoes S.A


-- Corporate Family Rating, Assigned Ba1

Outlook Actions:

-- Outlook, Assigned Negative


The corporate family rating reflects the stable profile of AEGEA's
business, the company's solid positioning and relatively strong
pricing power. The company benefits from very limited competition.
Very diverse operations result in lower exposure to water scarcity
problems shown by overall lower volume fluctuations and stable
cash flows. AEGEA's tariff mechanism and regulatory framework are
overall transparent and predictable with annual tariff adjustments
to pass through inflation. Expansion targets, quality standards
and capital investments are all pre-settled under the company's
concession contracts.

AEGEA's management team is experienced and the company's
shareholders show sound corporate governance practices in Moody's
view, further supporting the rating. Moody's understand that
shareholders will continue to actively support the company's
credit quality and liquidity. Moody's also expects that AEGEA will
continue to have sound access to the banking and capital markets
and will prudently manage its leverage, maintaining discipline on
its financial policy and mitigating cross-currency exposure risks
from the Note's issuance.

Another consideration for the rating was the fact that AEGEA
operates in various jurisdictions with different granting
authorities. Moody's notes that Brazil's water/sanitation
regulatory framework is relatively new and under development. The
rating is tempered by AEGEA's relative small scale and significant
expansion plan. New investments and acquisitions together with a
track record of high dividend payments will continue to pressure
leverage. The Notes have a financial covenant of consolidated Net
Debt to EBITDA ratio of 3.5x compared to Moody's forecasts of
around 3.0x in Moody's five-year projections.

The Notes' Ba2 rating factors in a one notch down structural
subordination from the Corporate Family Rating since AEGEA does
not hold any operations and is strictly a vehicle for controlling
stakes on the operating subsidiaries. AEGEA largely depends on the
regular payment of dividends that its operating subsidiaries
upstream to allow the company to meet its obligations, equity
investment commitments and potential cash requirements related to
its guarantees.

Brazil's sovereign rating is also a relevant consideration for
AEGEA's rating given the domestic nature of the company's
operation, and consequently its linkages to the local
economic/regulatory environment and ultimate credit quality.

What Could Change the Rating - Up /Down

In light of the negative outlook an upgrade of the ratings is
unlikely in the near term. Nonetheless, given the intrinsic
linkages of AEGEA rating to that of the Brazilian sovereign,
positive rating actions in the sovereign rating could cause upward
pressure to company's ratings.

On the other hand, deterioration in the sovereign's credit quality
could exert downward pressure on AEGEA rating as well as Moody's
assessment of weaker shareholders support. The rating could also
be downgraded if there is a significant and sustained
deterioration in the company's credit metrics and liquidity or if
there is a deterioration in its subsidiaries performance or
ability to upstream dividends. AEGEA has cross-default clauses
within the group and operates through a centralized cash
management system.

The rating could be revised downwards if there are material delays
or costs overruns on the capital investment program that
negatively impact revenues or lead to non-compliance with the
contractual targets. Moody's perception of deteriorated stability
and transparency of the regulatory regime would also add pressure
to the ratings as if volumes stay consistently below Moody's

The assigned ratings are based on preliminary documentation.
Moody's does not anticipate changes in the main conditions that
the Notes will carry. Should issuance conditions and/or final
documentation deviate from the original ones submitted and
reviewed by the rating agency, Moody's will assess the impact that
these differences may have on the ratings and act accordingly.

The principal methodology used in these ratings was Regulated
Water Utilities published in December 2015.

BANCO VOTORANTIM: Moody's Affirms LT LC Deposit Rating Ba2
Moody's Investors Service has affirmed all of Banco Votorantim
S.A.'s (BV) ratings and assessments, including its long-term local
currency deposit rating of Ba2, the long-term foreign currency
deposit rating of Ba3, as well as its Nassau Branch's long-term
senior unsecured foreign currency debt rating of Ba2. The outlook
remains negative.

Issuer: Banco Votorantim S.A.


-- Adjusted Baseline Credit Assessment, ba2

-- Baseline Credit Assessment, ba3

-- Long Term Counterparty Risk Assessment, Ba1(cr)

-- Short Term Counterparty Risk Assessment, NP(cr)

-- Subordinate Regular Bond/Debenture, Ba3

-- Senior Unsecured Medium-Term Note Program, (P)Ba2

-- Long Term Local Currency Deposit Rating, Ba2 Negative

-- Short Term Local Currency Deposit Rating, NP

-- Long Term Foreign Currency Deposit Rating, Ba3, Stable

-- Short Term Foreign Currency Deposit Rating, NP

-- Brazilian National Scale Deposit Rating,

-- Brazilian National Scale Deposit Rating, BR-1

-- Other Short Term, (P)NP

Outlook Actions:

-- Outlook, Negative(m)

Issuer: Banco Votorantim S.A. (Nassau Branch)


-- Long Term Counterparty Risk Assessment, Ba1(cr)

-- Short Term Counterparty Risk Assessment, NP(cr)

-- Senior Unsecured Medium-Term Note Program, (P)Ba2

-- Senior Unsecured Regular Bond/Debenture, Ba2 Negative

-- Other Short Term, Affirmed (P)NP

Outlook Actions:

-- Outlook, Negative


The affirmation of the ratings incorporates Moody's expectations
that the bank would achieve a meaningful improvement in its
capital position, supported by increasing internal earnings
generation as credit and operational costs decline, and higher-
margined loan origination takes hold. BV's financial performance
has improved over the past 12 months, particularly earnings
generation, but Moody's views further strengthening of its capital
and profitability as key to sustain its financial profile.

The negative outlook on BV's ratings reflects the challenges the
bank faces to implement a new lending strategy focused on the
corporate and commercial segments as the economic conditions
improve and credit demand recovers. The succesful implementation
of this new strategy will be necessary if the bank is to achieve
the expected performance improvements embedded in the current

BV's tangible common equity to risk weighted assets (TCE/RWA),
Moody's preferred capitalization metric, is low relative to peers,
at 4.6% in June 2017, and it has been largely stable over the last
12 months. Moody's capital measure, which is much lower than BV's
10.3% regulatory common equity tier 1 capital ratio, deducts the
large and growing stock of deferred tax assets (DTAs) to reflect
the loss absorbing capital. While the bank has generated modest
earnings, and the outstanding volume of RWAs has contracted by
6.8% in the past year, its capacity to increase capital ratio on a
sustainable basis is associated with higher earnings generation,
as well as with the pace of DTA realization.

The reduction in credit costs and the bank's capacity to capture
increasing non-interest revenues has led to modest improvement in
profitability, with net income to tangible banking assets
increasing to 0.53% in the first half of 2017, from 0.41% in 2016.
The bank is targeting to reposition its activity in the commercial
segment by focusing on secured lending to mid-size companies that
yield better risk adjusted returns. Therefore, profitability could
be favored by higher net interest margins as the bank succeeds in
making this strategic shift under disciplined credit underwriting
and risk management.

BV has adopted a more conservative credit stance in 2016,
resulting in 8% contraction of loans in the corporate segment,
following its poor experience with large problematic exposures.
Its exposure to the 20 largest borrowers relative to TCE reduced
significantly, but it is still high, equivalent to 138% in June
2017. As the bank expands its commercial loan book, the borrower
concentration risk is expected to decline further.

At the same time, Moody's note that the credit quality of BV's
consumer portfolio, predominantly vehicle financing, was
relatively stable over the past years despite the severe economic
contraction, demonstrating the strong adherence of its risk
management standards in this segment.

BV has been able to extend the maturity profile of its funding by
issuing long-term banknotes, while reducing the dependence on
short-term instruments, which helps the bank to better match
tenors of assets and liabilities. This strategy allows BV to
increasingly hold its longer-dated car loans in its balance sheet,
which supports revenues. As an alternative, BV may opt to sell
loans to Banco do Brasil S.A. (BB, Ba2 negative, ba2) by virtue of
its partial ownership by BB. To mitigate its intrinsic reliance on
market funds, BV holds a large volume of liquid resources and is
supported by a sizable undrawn liquidity facility from Banco do

BV's long-term local currency deposit and foreign currency senior
debt ratings of Ba2 incorporate one notch of affiliate support
uplift from its ba3 BCA, to reflect Moody's views of the high
likelihood of support from Banco do Brasil S.A. (Ba2 negative,


BV's BCA and ratings could be downgraded if the bank is unable to
improve its TCE / RWA ratio to at least 6.0%, as well as to
enhance its profitability, with net income to tangible assets
exceeding 0.75%. Also, downward pressures on its financial profile
could arise from a deterioration in its funding structure, with
declining share of long-term instruments, as well as by a
meaningful consumption of its liquid resources. BV's ratings would
also face downward pressure if Banco do Brasil were to be
downgraded by multiple notches. Given the negative outlook,
Moody's does not anticipate upward pressures on BV's ratings at
this time.

The principal methodology used in these ratings was Banks
published in January 2016.

Fitch Ratings has affirmed Eletropaulo Metropolitana Eletricidade
de Sao Paulo S.A.'s (Eletropaulo) Foreign and Local Currency
Issuer Default Ratings (IDRs) at 'BB' and long-term National Scale
Rating at 'AA-(bra)'. The Rating Outlook for the corporate ratings
is Stable.


Eletropaulo's ratings reflect its sound financial profile,
underpinned by moderate leverage, manageable liquidity position
and lengthened debt maturity profile. The company benefits from
its business risk profile, in view of its exclusive rights to
distribute electricity within its concession area in the
Metropolitan Region of greater Sao Paulo. After a two-year
reduction in energy demand in Eletropaulo's concession area, which
resulted in a cumulative decrease of approximately 8%, the agency
expects the consumption to resume growth in 2017, that along with
some cost savings, will positively impact its operational cash
flow generation.

Fitch's expectations that Eletropaulo's free cash flow (FCF) will
be negative in the next two years limit the company's ratings.
This assumption is based on the company's need for high capex and
also on the return to customers, from July 2017 to June 2018, of
higher revenues collected. The company's operational efficiency,
measured by quality indicators based on the duration and frequency
of supply disruptions, is currently above regulatory levels, which
requires strong investments to bring them to acceptable levels.
The ratings also incorporate the moderate regulatory and
hydrological risk of the Brazilian electricity sector, which is
currently above average.

Moderate Leverage to Remain: Fitch expects net leverage will
remain at moderate levels in the range of 2.5 x-3.0x over the next
three years. In the latest 12-month (LTM) period ended in June
2017, total debt/EBITDA was 3.9x, while net debt/EBITDA was 2.8x,
compared with 4.5x and 3.1x, respectively, for 2016. Fitch's
calculations do not incorporate BRL1.3 billion of debt related to
pension fund obligations, which are included in company financial
covenants, excluding pension fund expenses from EBITDA.
Considering this adjustments on the calculation, net adjusted
debt/EBITDAP would be 2.9x in June 2017.

Manageable Negative Free Cash Flow: Fitch expects negative FCF for
Eletropaulo in 2017 and 2018 at around BRL450 million-BRL550
million, following the base case scenario that incorporates an
increase in the annual average capex to the range of BRL1.0
billion-BRL1.2 billion in these years. Positively, the agency
considers that the strong cash reserves of BRL931 million at the
end of June 2017 can be used to manage this negative FCF. In the
LTM ended on June 2017, cash flow from operations (CFFO) of BRL992
million was not enough to cover the capex of BRL1.0 billion and
reduced dividends payment of BRL42 million, leading to a slightly
negative FCF of BRL74 million.

Fitch does not expect non-recurring items, such as the discussion
with the regulator related to a difference on its asset base
adopted on the second Tariff Review Cycle and the loan debt
involving Centrais Eletricas Brasileiras S.A. (Eletrobras) and
Companhia de Transmissao de Energia Eletrica Paulista S.A. (CTEEP)
to negatively impact Eletropaulo's cash flow generation. If those
items materialize, the agency will review its projections.

Energy Consumption to Recover: Fitch estimates a recovery in
consumption in Eletropaulo's concession area starting in in 2017,
which adds to operational cash generation, as a result of slightly
improvement in the local economy. High energy tariffs and the
challenging macroeconomic environment had negatively affected
consumption levels in the last two years, with an accumulated
reduction of around 8%. In the first semester of 2017, consumption
in Eletropaulo's concession area declined 0.3% compared to the
same period of previous year, with 3.2% and 4.7% decline in 2016
and 2015, respectively. The weak economy has also harmed the
company in terms of a rise in delinquency, as well as high energy
losses, which reached 9.6% in the LTM ended on June 2017, still
above the regulatory limit of 9.4%.

EBITDA Below Regulatory Target: In the LTM ended on June 2017,
EBITDA of BRL861 million remained significantly below the
regulatory EBITDA estimate of BRL1.2 billion, defined during the
last tariff review process in 2015. Most of this gap is explained
by the pension fund expenses, along with the lower energy
consumption in the concession area and penalties related to
quality indicators below regulatory targets. The increase in capex
level to improve service quality is a positive signal to meet the
regulatory standards and reduce penalties in the future. Fitch
scenario incorporates some productivity gains but Fitch does not
expects EBITDA to be under the regulatory level before 2019.


Eletropaulo's IDR of 'BB' compares favourably to Companhia
Energetica de Minas Gerais' (Cemig) IDR at 'B+', as Cemig carries
higher leverage and significant refinancing needs until the end of
2018. In relation to Energisa S.A.'s IDR of 'BB', it compares
equal due to structural debt subordination of this holding
company. When comparing to Energisa's consolidated distribution
subsidiaries rated 'BB+', the last ones benefit from a more
diversified asset base and improvement in the operational results
after the acquisition of Group Rede distribution companies. Emgesa
(Colombia) 'BBB' and AES Gener (Chile) 'BBB-', both operating in
the electric generation segment, benefit from a better operating
environment since their revenue generation and asset location are
in investment grade countries. Nevertheless, AES Gener has an
aggressive expansion program with some execution risk that
explains the fact that the IDRs are on Rating Watch Negative.


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

-- Consumption in the concession area increasing by 1% in 2017
    and 2% in 2018 and 2019;
-- CAPEX of BRL2.9 billion in from 2017 to 2019; and
-- Minimum operational cash level of BRL500 million.


Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
-- EBITDA more in line with the regulatory level;
-- Net leverage consistently below 2.5x;
-- Cash and equivalents + CFFO/short-term debt ratio consistently
    above 2.0x.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
-- Net leverage consistently above 3.5x;
-- Cash and equivalents + CFFO/short-term debt ratio below 1.0x;
-- Unexpected significant cash outflows due to litigation with
    CTEEP and Eletrobras;
-- Unfavorable regulatory decisions;
-- Any pressure coming from the controlling shareholder (AES Corp
    - BB-/Stable) for Eletropaulo to increase the dividends
    upstream, pressuring the company's credit metrics in
    comparison with Fitch's base case scenario.


Fitch considers that Eletropaulo presents a manageable liquidity
profile. As of June 30, 2017, cash and marketable securities of
BRL931 million was high and covered short-term debt of BRL640
million by 1.5x. Adding the CFFO registered in the LTM ended in
June 2017, the short-term debt coverage was 3.0x. Nevertheless,
the agency expects that the high forecasted capex should reduce
the company's liquidity position in the coming two years. As a
mitigating factor, Eletropaulo presents proven access to debt from
the capital market and banks. The company also has around 80% of
its flow of receivables free, which adds to financial flexibility.


Fitch has affirmed the following ratings:

Eletropaulo Meropolitana Eletricidade de Sao Paulo S.A.
-- Long-Term Foreign and Local Currency IDRs at 'BB';
-- Long-Term National Scale Rating at 'AA-(bra)';
-- 9th senior unsecured debentures issuance, in the amount of
    BRL250 million, at 'AA-(bra)';
-- 11th senior unsecured debentures issuance, in the amount of
    BRL200 million, at 'AA-(bra)';
-- 15th senior unsecured debentures issuance, in the amount of
    BRL750 million, at 'AA-(bra)';
-- 20th senior secured debentures issuance, in the amount of
    BRL700 million, at 'AA-(bra)'.


DOMINICA: Urgent Need for Food and Water
The Daily Observer reports that local and regional officials
spearheading different efforts in Dominica have warned that the
humanitarian situation on that nature island will worsen if relief
is not delivered in a more organized manner.

The regional and international community have been mobilizing
relief since the passage of Hurricane Maria over, according to The
Daily Observer. However, people in some areas are still without
food, clothing, water and other basic necessities, the report

Thomson Fontaine, a Dominican Economist, said the relief effort is
yet to start in earnest despite the fact that several roads are
now clear, the report relays.

The report discloses that Mr. Fontaine said the situation is
further compounded by the fact that some Dominicans did not get a
chance to stock up on food supplies prior to the storm. And those
who did, are now without because of the widespread destruction on
the island.

"The authorities on the ground have not been able to organize the
relief effort. They have made some isolated drops, though, to some
villages.  It is not as organized as we would like to see and
people are quickly running out of food," the report quoted Mr.
Fontaine as saying.

The economist, who also operates an online radio station said
residents have been relaying information to him via the airwaves,
the report relays.

"What we are hearing is not good. I still cannot understand that
an entire week after, no real efforts have been launched and that
is very concerning to me," Mr. Fontaine said, the report notes.

Kathleen Pinard-Byrne, director general of the Red Cross on
Dominica, who is on the ground in the "nature isle", also admitted
that water and food are in short supply, the report relays.

Ms. Pinard-Byrne said the country has not received any large
quantity of food and government has resorted to taking food from
all the supermarkets and warehouses for redistribution to people
who are in need, the report discloses.

In terms of water, she said the main source of water from the
Roseau river was compromised during the passage of the Category 5
storm and government now has to source the necessity from
elsewhere, the report relays.

"The Red Cross has been distributing aqua tablets to sterilise
that water, but as far as bottled water is concerned, limited
amount of that is on island at this time," Mr. Pinard-Byrne said,
the report adds.

DOMINICA: Death Toll Rises in Country Following Hurricane
The Daily Observer reports that twenty-seven Dominicans are
confirmed dead, 27 are confirmed missing, and 18 are unconfirmed
missing, Daniel Carbon, Dominican police chief said.  The
overwhelming majority of deaths were in Pointe Michel, according
to The Daily Observer.

This number is an increase from the 15 deaths he confirmed, the
report relays.  The police chief said the names of the deceased
will be released within the next 24 hours, the report notes. Mr.
Carbon also said that none of the dead include police, the report

The report says that Mr. Carbon expressed his deepest condolences
"to the persons and families who lost loved ones in Hurricane
Maria," a Category 5 storm that made landfall in Dominica on
September 18.

Mr. Carbon also gave an update on the looting and acts of violence
amidst the recovery effort, the report relays.

"Immediately following the passage of Hurricane Maria, we have had
massive lootings," the report quoted Mr. Carbon as saying.
"Several businesses in Roseau and, to a lesser extent, the town of
Portsmouth," were the targets, the report relays.

In total, the police arrested 40 for looting and 86 were arrested
for breaching the nationwide curfew from 4:00 p.m. to 8:00 a.m.,
the report relays.  Meanwhile, Davidson Valerie, deputy police
chief, warned that compliance with the curfew would be strictly
monitored, the report relays.  Valerie made an appeal to Dominican
youth to desist from "mob-like" behavior as the focus of police
and security forces should be on rescue and relief of residents in
need, the report adds.

D O M I N I C A N   R E P U B L I C

DOMINICAN REP: US$16.98BB Budget Boosts Social Programs, Economy
Dominican Today reports that Dominican Republic President Danilo
Medina and his cabinet approved the draft of the 2018 Budget, of
RD$814.82 billion (US$16.98 billion).

Finance Minister Donald Guerrero said there's a RD$64.5 billion
increase compared to the 2017 budget, or 10.3 percent, according
to Dominican Today.

"The budget for 2018 will focus on two fundamental pillars: the
continuity of social programs and the dynamization of the economy
with an emphasis on support for SMEs and highly-profitable social
works," the report quoted Mr. Guerrero as saying.

The official said the Budget bill will be submitted to Congress
soon, the report relays.

Mr. Guerrero said health is also a priority in public spending, of
RD$684.0 billion, which will expand the subsidized care and
education, with school construction, the report says.

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.


HONDURAS: Moody's Ups Foreign & Local Currency Issuer Rating to B1
Moody's Investors Service has upgraded the Government of Honduras'
foreign currency and local currency issuer and senior unsecured
ratings to B1 from B2. The rating outlook was moved to stable from

Moody's decision to upgrade Honduras' ratings to B1 reflects the
following key drivers:

(1) Honduras has stabilized its debt and fiscal metrics at lower
levels than peers

(2) Institutional and economic conditions support continued fiscal

Honduras' long-term foreign currency bond ceiling was raised to
Ba2 from Ba3. The foreign-currency deposit ceiling was raised to
B2 from B3, while the local-currency bond and deposit ceilings
remain unchanged at Ba2. The short-term foreign-currency bond and
deposit ceilings remain unchanged at NP.




Moody's expects Honduras' general government deficit will average
1% of GDP in 2017 and 2018, consolidating the fiscal improvement
evident since 2013, when the deficit reached 5.7% of GDP. The
fiscal deficits for this year and next will be slightly higher
than 2016's 0.4% of GDP, as the government seeks to increase
infrastructure spending, but still remain significantly lower than
the 4.5% of GDP median for B1-rated sovereigns.

The lower fiscal deficit is the result of both revenue increases
and expenditure constraints. Between 2013 and 2016 general
government revenues rose from 23.8% of GDP to 27.2% and
expenditures fell from 29.6% to 27.6%. The increase in revenues,
the result of a new streamlined tax agency, is of particular
importance in Central America where most other countries have
found it almost impossible to increase their tax intake.

The lower fiscal deficit has stabilized general government debt at
close to 39% of GDP, compared to a 62% of GDP median for all B1
countries. Looking at debt as percentage of revenues provides
similar results, with Honduras' general government debt stable
around 140%-150% of government revenues compared to close to 250%
for B1-rated peers. Moody's base scenario assumes that the debt
burden will remain unchanged for the next two to three years but
continued low fiscal deficits and sustained nominal GDP growth may
push the debt burden lower than Moody's currently forecast.


Moody's expects that a combination of steady economic growth and
improved fiscal institutions will support fiscal discipline going

Honduras is a small, open economy whose growth is derived from
textile manufacturing (mostly maquila exports to the US),
agriculture and remittances. Growth has been stable in the last 5
years, averaging 3.5% annually. Economic growth in 2017 and 2018
will likely be higher, averaging at least 3.8%, thanks to a
combination of greater remittances, improved external conditions,
and plans for greater infrastructure investment.

Remittances, which support domestic consumption, will rise to
close to 19% of GDP in 2017 from 17% in 2014. The external
accounts are further supported by lower oil prices, which will
help reduce the current account deficit to less than 5% of GDP in
2017 from 9.5% of GDP in 2013.

The fiscal consolidation process has been assisted, since 2014, by
an IMF program backed by a Stand By Arrangement and Stand-By
Credit Facility. Honduras consistently met its fiscal targets
during the program, and, although the IMF program ends in 2017,
the government has put in place a fiscal responsibility law that
seeks the continued gradual decrease of the fiscal deficit.
Presidential elections are due in November 2017 and Moody's
expects that the results will not materially impact fiscal policy


The stable outlook balances the country's comparatively low fiscal
deficits and expectations of continued growth with its relatively
low economic development. Honduras GDP per capita was $5,194 in
2016 (PPP basis), less than half the $11,634 median of B1-rated


Faster and sustained GDP growth that supports declining government
debt ratios could lead to a positive rating action.

Conversely, the outlook could be revised to negative if future
policy behavior is not consistent with newly created institutional
arrangements, thus preventing additional progress on fiscal
consolidation and stalling the positive trends observed in recent

GDP per capita (PPP basis, US$): 5,194 (2016 Actual) (also known
as Per Capita Income)

Real GDP growth (% change): 3.6% (2016 Actual) (also known as GDP

Inflation Rate (CPI, % change Dec/Dec): 3.3% (2016 Actual)

Gen. Gov. Financial Balance/GDP: -0.4% (2016 Actual) (also known
as Fiscal Balance)

Current Account Balance/GDP: -3.8% (2016 Actual) (also known as
External Balance)

External debt/GDP: 35.1% (2016 Actual)

Level of economic development: Very Low level of economic

Default history: No default events (on bonds or loans) have been
recorded since 1983

On Sept. 20 2017, a rating committee was called to discuss the
rating of the Honduras, Government of. The main points raised
during the discussion were: The issuer's economic fundamentals,
including its economic strength, have materially increased. The
issuer's governance and/or management, have materially increased.
The issuer's fiscal or financial strength, including its debt
profile, has materially increased.

The principal methodology used in these ratings was Sovereign Bond
Ratings published in December 2016.

The weighting of all rating factors is described in the
methodology used in this credit rating action, if applicable.


CUAUTLA: Moody's Assigns Caa1 Issuer Rating; Outlook Negative
Moody's de Mexico assigned first-time Caa1 (Global Scale, local
currency) and (Mexico National Scale) issuer ratings to the
Municipality of Cuautla. The outlook is negative.


The issuer ratings assigned to the municipality reflect Cuautla's
structural liquidity pressures, evidenced by two missed payments
on a short-term loan and a factoring facility, weak operating
balances and high debt burden. In addition, the ratings take into
consideration the municipality's large off balance sheet
liabilities, which raise risks that it could face costly
contingencies, as well as its high susceptibility to political
pressures that have prevented the adoption of sound financial
management practices. Moody's does not expect substantial
improvements in the medium term.

The ratings also incorporate Cuautla's relevance as the second
most economically important city in the State of Morelos, which
has allowed it to maintain stable own-source revenues equivalent
to an average of 22.7% of operating revenues, and moderate cash
financing requirements of -1.2% of total revenues.

Cuautla's gross operating balance (GOB) averaged -12.8% of
operating revenues, while its cash financing balance averaged -
1.2% of total revenues, over the period 2012-2016. This reflects
the municipality's high cost structure, with operating
expenditures averaging 113% of operating revenues over the
analysis period. Expenses in some years have grown more than
revenues, mainly driven by costs for personnel and public
services, as well as infrastructure spending. As a consequence,
the municipality accumulated significant current liabilities, and
given that it has no holdings of cash and equivalents, its ratio
of cash and equivalents to current liabilities averaged -0.02
times (x) over 2013-2016, the lowest level among Moody's rated
Mexican municipalities. The poor liquidity has led in the past to
missed payments on short-term debt obligations that have been
restructured with longer maturities. For 2017-2019, Moody's
expects that Cuautla's GOB and cash financing requirements will
average -17% of operating revenues and -2% of total revenues, and
therefore its liquidity metrics will remain very weak.

As of June 2017, net direct and indirect debt was equivalent to
63.2% of operating revenues, above the 39% median of Mexican
municipalities rated at a Caa1 level. This debt is composed by two
loans backed with federal transfers, which combined represent
91.4% of total net direct and indirect debt. The remaining 8.6% is
made up of advances on non-earmarked federal transfers
(participations) and commercial paper related to the April 2017
restructuring of its short-term loan and factoring facility with
Banco Interacciones that will be repaid in October 2018. Moody's
estimates that net direct and indirect debt level will remain high
and around 52.4% of total revenues and debt service will average
14% of operating revenues over the next three years.

Finally, Cuautla registered off balance sheet liabilities of MXN
525.1 million in 2016, including a lease that is currently in a
legal process which municipality expects to be resolved in the
next 2 years. An unfavorable resolution for Cuautla would generate
additional and significant pressure on the municipality's
finances, potentially requiring it to make a MXN 200 million
payment, which would be equal to 53.3% of last year's operating


The negative outlook reflects the ongoing challenges that Cuautla
faces to reverse a trend of weak operating and financial results,
as well as to consistently improve its liquidity position. It also
reflects the significant uncertainty about the municipality's off
balance sheet liabilities.


Given the negative outlook, an upgrade is unlikely in the near
term. However, ratings can stabilize if Cuautla improves its
operating and financial balances in conjunction with a
strengthening in its liquidity position and a reduction of debt

On the other hand, a further deterioration of the operating and
financial balance leading to a lower liquidity and use of short-
term debt, as well as the possible materialization of the required
payment of the lease could result in a rating downgrade.

The principal methodology used in these ratings was Regional and
Local Governments published in June 2017.

The period of time covered in the financial information used to
determine Municipality of Cuautla's rating is between 01/01/2012
and 31/12/2016 (source: Municipality of Cuautla and INEGI).

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


TERMINALES PORTUARIOS: S&P Affirms 'BB' Rating on $110MM Sr. Notes
S&P Global Ratings affirmed its 'BB' issue-level rating on TPE's
$110 million senior secured notes due 2037. S&P revised the
outlook to positive from stable on the prospect of better coverage
ratios in the next 12 to 18 months.

S&P said, "The outlook revision reflects our view that TPE will
further strengthen the volumes handled at the port in the context
of the growing economy and the increasing agricultural production
in its area of influence in northern Peru, which should boost the
cash flow available for debt service and thus the relevant
coverage metrics over the next one to two years. We expect a
minimum DSCR of above 1.40x in the aforementioned timeframe. We
also expect additional gains in efficiency due to the
incorporation of new equipment in 2016 (related to stage 2 of the
investments agreed with the concession contract grantor) that
should also improve profitability levels."

P U E R T O    R I C O

FARMACIAS FREDDY: Unsecureds to Get 23.14% Over 24 Months
Farmacias Freddy, Inc., filed with the U.S. Bankruptcy Court for
the District of Puerto Rico a small business disclosure statement
for its plan of reorganization, dated Sept. 15, 2017.

Unsecured creditors are classified as Priority Unsecured Creditors
and General Unsecured Creditors in Class 2.  Combined, unsecured
creditors are projected to receive a distribution of $180,000
which equals approximately a 23.14% distribution of their Allowed

Distributions to General Unsecured Creditors will be in the amount
of $72,000 and will be made via 24 monthly payments of $3,000
commencing on the first day of the 37th month following the
Effective Date of the Plan.

The Plan will be funded from the cash-flows generated by the
Reorganized Debtor. The Debtor's cash-flows consist of the
business income and revenue generated by the Debtor. The Debtor
will contribute its cash flows to fund the Plan commencing on the
Effective Date of the Plan and continue to contribute through the
date that Holders of Allowed Class 1 and 2 Claims receive the
payments specified for in the Plan.

A copy of the Disclosure Statement is available at:

                   About Farmacias Freddy

Farmacias Freddy, Inc., based in Naguabo, Puerto Rico, filed a
Chapter 11 bankruptcy petition (Bankr. D. P.R. Case No. 16-09980)
on December 23, 2016.  The Hon. Brian K. Tester presides over the
case.  Jesus Enrique Batista Sanchez, Esq., at The Batista Law
Group, PSC, serves as Chapter 11 counsel.  In its petition, the
Debtor listed $646,094 in total assets and $1.05 million in total
liabilities.  The petition was signed by Ivan Garcia, president.

RISE ENTERPRISES: Seeks Approval of Cash Collateral Agreement
Rise Enterprises, S.E., and Banco Popular de Puerto Rico, Inc.,
filed with the U.S. Bankruptcy Court for the District of Puerto
Rico a joint motion for approval of a provisional agreement for
the Rise Enterprises' use of cash collateral.

Specifically, the Debtor and Banco Popular seek authorization for
the use of cash collateral until October 5, 2017, for which the
Debtor will pay $6,202 as interim adequate protection to be paid
in the following manner: $2,684 for the use of cash collateral
until Sept. 5, and $3,518 for the use of cash collateral until
Oct. 5.

The Debtor acknowledges that Banco Popular has a lien on the cash
collateral and has listed Banco Popular as a secured creditor with
various claims that amount to about $1,641,753.

A provisional agreement was reached on Aug. 3, 2017, wherein Banco
Popular consents to the use of cash collateral until Sept. 5, 2017
and in exchange thereof the Debtor will pay $2,684 as interim
adequate protection.  Subsequently, the Debtor and Banco Popular
have agreed to extend the aforementioned provisional remedy for
additional 30 days. In exchange thereto, the Debtor agrees to pay
Banco Popular $3,518 as interim adequate compensation.

The Debtor will use the cash collateral funds solely for its
ordinary business operating expenses as reflected in the proposed
Budget, which provides total expenses of approximately $49,245.

A full-text copy of the Debtor's Motion, dated Sept. 5, 2017, is
available at

A copy of the Debtor's Budget is available at

Banco Popular is represented by:

          Roberto Abesada-Aguet, Esq.
          Sergio E. Criado, Esq.
          Correa-Acevedo & Abesada Law Offices, PSC
          # 90 Carr. 165, Suite 407
          Guaynabo, Puerto Rico, 00968
          Tel.: (787) 273-8300
          Fax: (787) 273-8379

                     About Rise Enterprises

Rise Enterprises, S.E., sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 17-04678) on June 30,
2017.  Ismael Falcon Ortega, partner, signed the petition.  The
Debtor estimated assets of less than $1 million and liabilities of
$1 million to $10 million.  Judge Mildred Caban Flores presides
over the case.  Mary Ann Gandia, Esq., at Gandia-Fabian Law
Office, serves as the Debtor's bankruptcy counsel.

PUERTO RICO ELECTRIC: "Rolon" Suit Seeks to Certify Class
VITOL, INC.; JOHN DOES 1-100, the Defendants, Case No. 3:15-cv-
01167-JAG-MEL (D.P.R.), the Plaintiffs ask the Court for an order:

   1. certifying a Class of:

      "all persons or entities that paid a fuel oil surcharge on
      their electricity bill to the Puerto Rico Electric Power
      Authority (a/k/a Autoridad de Energia Electrica) during the
      period January 1, 2002 to April 30, 2016";

   2. appointing Hagens Berman Sobol Shapiro LLP as Class

   3. appointing Plaintiffs Jorge Valdes Llauger and Anne Catesby
      Jones as Class Representatives; and

   4. directing that notice be sent to the Class, and granting
      such other relief as the Court deems necessary and

The Plaintiffs bring their claims on behalf of the Class under the
Racketeering Influenced and Corruption Organizations (RICO) Act.

A copy of the Motion is available at no charge at

The Plaintiffs are represented by:

          Elizabeth A. Fegan, Esq.
          Mark T. Vazquez, Esq.
          455 N. Cityfront Plaza Dr., Suite 2410
          Chicago, IL 60611
          Telephone: (708) 628 4949
          Facsimile: (708) 628 4950

               - and -

          Steve W. Berman
          1918 Eighth Avenue, Suite 3300
          Seattle, WA 98101
          Telephone: (206) 623 7292
          Facsimile: (206) 623 0594

               - and -

          Jane A. Becker Whitaker, Esq.
          P.O. Box 9023914
          San Juan, Puerto Rico 00902
          Telephone: (787) 754 9191
          Facsimile: (787) 764 3101

               - and -

          J. Barton Goplerud, Esq.
          Andrew Howie, Esq.
          5015 Grand Ridge Drive, Suite 100
          West Des Moines, IA 50265
          Telephone: (515) 223 4567


S&P Global affirmed its 'BB+' rating on Administracion Nacional de
Combustibles, Alcohol y Portland (ANCAP).  The stand-alone credit
profile (SACP) is still 'b'. The outlook remains stable.

S&P said, "The ratings on ANCAP continue to reflect our view that
there is a very high likelihood that the government of the
Republic of Uruguay (BBB/Stable/A-2) would provide timely and
sufficient extraordinary support to the company in the event of
financial distress. Our assessment incorporates our view of
ANCAP's very important role as the sole petroleum importer,
refiner, and supplier of refined products to Uruguay's
distributors, and its very strong link with the government,
particularly regarding the budget approval process, debt
authorization, and tax payments."

ANCAP's 'b' stand-alone credit profile, in turn, incorporates the
volatility and cyclicality in refining margins, as well as the
challenges of operating a single, small refinery, with a total
installed capacity of 50,000 barrels per day. ANCAP's strong
competitive advantage, being the nation's sole petroleum importer
(60% market share in retail), partially offsets the weaknesses.

S&P said, "The stable outlook on ANCAP primarily reflects that of
the sovereign, incorporating our expectation that, in the next 12
months, the company will continue to be very strongly linked to
the government and play a very important role in the country's
energy sector. In addition, it reflects our view that ANCAP will
continue to refinance its short-term maturities, as it has in the
past, which we attribute to its government ownership."

URUGUAY: Takes Stand Against Military Intervention in LatAm
Latin American Herald reports that Uruguay rejects any "hint of
military intervention" and "interventionist and warmongering
approaches" in Latin America, Uruguayan Foreign Minister Rodolfo
Nin Novoa told the UN General Assembly.

"Latin America, as a bloc, has repudiated any hint of military
intervention in any Latin American country to settle internal
conflicts, whatever their intensity is," the report quoted Nin
Novoa as saying.

The foreign minister did not say which country he was referring
to, but US President Donald Trump said on Aug. 11 that he was not
ruling out the "military option" in Venezuela, the report notes.

"These interventions, as the historical experience of our
continent shows, have only left violence, poverty and long-lasting
instability in their wake," the Uruguayan foreign minister said,
the report relays.  "Latin America is solidly united against these
interventionist and warmongering approaches, which are neither
rational nor wise."


VENEZUELA: Vows to Defend Itself Against Illegal Attacks by Trump
EFE News reports that Venezuelan Foreign Minister Jorge Arreaza
denounced before the United Nations what he called the unilateral
and illegal actions of US President Donald Trump.

"As if he were the world's emperor, the president of the United
States, Donald Trump, used this podium built for peace to announce
wars, total destruction of member states, application of
unilateral and illegal coercive measures, threatening and judging
as if he had absolute, dictatorial powers over the sovereign
member states of our organization," the Venezuelan foreign
minister said in his address, according to EFE News.

Minister Arreaza specifically slammed the "illegal" economic
sanctions imposed by the White House on Venezuela last August, and
warned that while "we're open to dialogue" with the United States,
his country "can respond to attacks," the report notes.

After his speech, Venezuela's foreign minister also referred
during a press conference to the latest US travel ban -- "the
tougher, the better" in Trump's words -- against Venezuela and
another eight countries as a means, the US president said, "to
protect the security and interests of the United States and its
people," the report relays.

"We have to stop the madness and the irrationality," was Minister
Arreaza's response, the report notes.

During his speech, he recalled the words of former President Hugo
Chavez that in the UN he detected "the smell of sulphur," and said
"it is still the case that this podium smells like sulphur"
because the UN is again disrespected by arrogant powers that try
to impose their unilateral rules of the game, the report relays.

The report discloses that he, therefore, urged the United Nations
to create effective mechanisms to neutralize the warlike ambitions
and attempts to replace multilateralism with dictatorial
unilateralism by those who threaten the use of arms and economic

Minister Arreaza also denounced those who accuse his country of
not respecting human rights and said that if there is one nation
that has no right to be on the UN Human Rights Council it is
precisely the US because "undoubtedly, the United States is the
main human rights violator in the world," the report adds.

As reported in the Troubled Company Reporter-Latin America on
Sept. 1, 2017, Fitch Ratings has taken the following rating
actions on Venezuela's sovereign ratings:

-- Long-term foreign and local currency IDRs downgraded to 'CC'
    from 'CCC';
-- Senior unsecured debt downgraded to 'CC' from 'CCC';
-- Short-term foreign and local currency IDRs affirmed at 'C';
-- Country ceiling downgraded to 'CC' from 'CCC'.


LATAM: CDEMA Stretched Thin After Irma And Maria
The Daily Observer reports that Ronald Jackson, executive director
of the Caribbean Disaster Emergency and Management Agency (CDEMA),
said that the severity of the devastation caused by hurricanes
Irma and Maria, have not only challenged the immediate countries,
but also the regional agency that is assisting with the relief

Speaking on OBSERVER AM, Mr. Jackson said that CDEMA has never
before dealt with multijurisdictional disasters within such a
short time frame, according to The Daily Observer.

"So many islands in the Caribbean are being impacted all at once,
and at such high magnitude. We have had countries like Grenada and
Jamaica which have had tremendous, widespread impact from
hurricanes. This is now several that has led to the mobilization
of the regional response, across a wider geographic space, within
the space of less than seven days," the report quoted Mr. Jackson
as saying.


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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