TCRLA_Public/171030.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

               Monday, October 30, 2017, Vol. 18, No. 215



ELDORADO BRASIL: Funcef to Exercise Tag-Along Rights in Stake Sale
ELDORADO BRASIL: S&P Affirms 'B-' CCR, Off CreditWatch Negative
J&F INVESTIMENTOS: Calls Decision to Freeze Assets Legally Fragile
J&F INVESTIMENTOS: S&P Affirms B- CCR, Off CreditWatch Developing
OI SA: Government Intervention No Longer Imminent, Regulator Says

SANTA CATARINA: Fitch Affirms BB Long-Term IDR; Outlook Negative
SAO PAULO: Fitch Affirms BB Long-Term IDR; Outlook Negative


BANCO AMAMBAY: Moody's Revises Outlook to Pos.; Affirms Ba3 Rating


INKIA ENERGY: S&P Rates New $450MM Sr. Unsecured Notes 'BB-'
INKIA ENERGY: Moody's Assigns Ba3 Corporate Family Rating
INKIA ENERGY: Fitch Rates Proposed US$450MM Debt 'BB'

T R I N I D A D  &  T O B A G O

CARIBBEAN CEMENT: Reports Profit After J$81MM Loss Last Year


PDVSA: Oil Bonds Plunge With 24 Hrs to Go Until Payment Is Due


* BOND PRICING: For the Week From Oct. 23 to Oct. 27, 2017

                            - - - - -


ELDORADO BRASIL: Funcef to Exercise Tag-Along Rights in Stake Sale
Bruno Federowski at Reuters reports that Brazilian pension fund
Funcef decided to exercise tag-along rights and sell its 8.53
percent stake in wood pulpmaker Eldorado Brasil Celulose SA to
Netherlands-based Paper Excellence BV, according to a statement.

Eldorado controlling shareholder J&F Investimentos SA agreed in
September to sell the pulpmaker to Paper Excellence, controlled by
the owners of Indonesia's Asia Pulp & Paper Co Ltd, for BRL15
billion (US$4.8 billion), according to Reuters.

The stake held by Funcef, the pension fund representing employees
at state bank Caixa Economica Federal, is valued at around BRL650
million, a person with knowledge of the transaction said, the
report notes.

Funcef owns the stake indirectly through investment vehicle FIP
Florestal, which is also partly owned by Petros, the pension fund
of oil workers at Petroleo Brasileiro SA, the report relays.

Petros has yet to announce whether it will sell its own 8.53
percent stake in the investment vehicle, the report adds.

ELDORADO BRASIL: S&P Affirms 'B-' CCR, Off CreditWatch Negative
S&P Global Ratings affirmed its 'B-' global scale corporate credit
rating on Eldorado Brasil Celulose S.A. (Eldorado) and its 'brB+'
national scale rating. At the same time, S&P removed all ratings
from CreditWatch. The outlook is negative.

S&P said, "We also affirmed the 'B-' senior unsecured debt ratings
on Eldorado's 2021 notes with a recovery rating of '4', indicating
our expectation of an average recovery (35%) in case of default.
The 2027 debentures rating reflects J&F Investimentos S.A.'s
credit quality, since the latter fully guaranties the debentures.
Its recovery rating is '3', reflecting meaningful (65%) recovery
expectations as a result of J&F's guarantee.

"The ratings affirmation reflects our view that the refinancing
activities on trade finance lines over the last three months,
coupled with higher pulp prices -- and consequently higher cash
flow generation -- eases immediate liquidity pressures but does
not entirely solve Eldorado's still high short-term debt
commitments. In addition, we believe that incentives for
refinancing trade finance lines are high, not only driven by the
company's deleveraging trend, but also based on its likely change
of control in the short-term.

"The negative outlook indicates our view that Eldorado is still
exposed to refinancing risk under an environment of ongoing
reputational damage and negative news flow on the group.
Additionally, any potential contingent liabilities or developments
from the ongoing investigations could pose additional risks for
company's access to capital and credit markets.

"In terms of Eldorado's debt, we will also monitor how the
guarantee provided by J&F to Eldorado's debentures will be
affected by the eventual change in control. Under our base-case,
this will likely be renegotiated and released once and if the new
ownership structure materializes, meaning that the rating would no
longer be tied to that on J&F.

"We could lower the ratings over the next 6-12 months if we
perceive refinancing problems, and if fluctuations in pulp price
and exchange rates reduce Eldorado's cash flow generation,
pressuring its cash position and financial flexibility to deal
with its high short-term debt obligations.

"The change of control could also pressure the rating if we
perceive Paper Excellence has lower creditworthiness than
Eldorado, potentially hurting its cash flows. Any debt
acceleration following the change of control clauses, in the
absence of a contingent cash plan to handle that event-risk, would
also increase downside risks.

"We could revise the outlook to stable over the next 12 months if
Eldorado is able to advance its refinancing efforts by extending
the debt maturity profile, while cash flow generation continues to
benefit from high pulp prices. We would also need to have greater
clarity on future contingent liabilities and how the potential new
owner's credit quality could affect Eldorado's financial policies
and cash flows."

J&F INVESTIMENTOS: Calls Decision to Freeze Assets Legally Fragile
RJR News reports that a decision by a Brazilian federal judge to
freeze the assets and companies of the billionaire Batista family
is "legally fragile" because it is based on newspaper reports and
not on prior judicial rulings, the lawyers representing the
family's investment holding company J&F Investimentos SA said.

In a statement, the lawyers said a decision by Federal Judge
Ricardo Leite of the 10th District Court of Brasilia demanding the
family deposits of BRL1.6 billion (US$506 million) to compensate
state development bank BNDES is unjustified because J&F was to pay
a slightly bigger fine as part of a May leniency accord, according
to Reuters.

Earlier in the day, Leite ordered the assets of the Batistas be
frozen as part of an investigation, the report notes.

J&F INVESTIMENTOS: S&P Affirms B- CCR, Off CreditWatch Developing
S&P Global Ratings affirmed its 'B-' global scale corporate credit
rating on J&F Investimentos S.A. (J&F). S&P also affirmed the
'brB+' national scale rating on the company. At the same time, S&P
removed all ratings from CreditWatch developing. The outlook is

S&P also affirmed its 'brB+' senior unsecured ratings on J&F's
debentures due November 2017. The recovery rating of '3',
indicating the expectation of a meaningful recovery (65%), remains

The ratings affirmation reflects that J&F's ongoing execution of
its divestment plan has reduced liquidity pressures. In addition,
the rating constraints stem from the weakening credit quality of
J&F's main investees and the holding company's still high adjusted
leverage (considering the fine payment related to the leniency
agreement and the guarantee it provides to its investee Eldorado
Brasil Celulose S.A.)

OI SA: Government Intervention No Longer Imminent, Regulator Says
Reuters reports that the risk of a government intervention in
bankrupt telephone group Oi SA has subsided after shareholders
gave assurances they would not change its current managers,
Brazil's telecoms regulator Anatel said.

"Intervention is no longer imminent," Anatel chief Juarez Quadros
told reporters, according to Reuters.  He said shareholders had
sent the company emails assuring its managers that "at no time"
had they or the board of director considered replacing them, the
report notes.

Brazil's Solicitor General Grace Mendonca also said intervention
of the debt-laden carrier was the last thing it had in mind, the
report relays.

The report discloses that she said authorities were working to
avoid an intervention and a list of alternative restructuring
proposals for saving the company is being drawn up by a government
task force.

Oi SA bondholders rejected the company's restructuring plan
presented earlier this month and a judge overseeing the bankruptcy
protection proceedings agreed to a request by creditors to
reschedule an assembly for November, the report notes.

The postponement allows time to reconcile competing restructuring
proposals more than a year into Brazil's biggest ever in-court

Oi's liabilities include some BRL11 billion (US$3.5 million) in
fines and interest owed to Anatel, and debts to public banks such
as Banco do Brasil SA BBAS3.SA and development bank BNDES, who
have a say in the restructuring of the carrier, the report adds.

                             About Oi SA

Headquartered in Rio de Janeiro, and operating almost exclusively
within Brazil, the Oi Group provides services like fixed-line data
transmission and network usage for phones, internet, and cable,
Wi-Fi hot-spots in public areas, and mobile phone and data
services, and employs approximately 142,000 direct and indirect

On June 20, 2016, pursuant to Brazilian Law No. 11.101/05 (the
"Brazilian Bankruptcy Law"), Oi S.A. and certain of its
subsidiaries filed for recuperao judicial (judicial
reorganization) in Brazil.

On June 21, 2016, OI SA and its affiliates Telemar Norte Leste
S.A. and Oi Brasil Holdings Cooperatief U.A. commenced Chapter 15
proceedings (Bankr. S.D.N.Y. Lead Case No. 16-11791).  Ojas N.
Shah, as foreign representative, signed the petitions.

Coop and PTIF are also subject to proceedings in the Netherlands.

The Chapter 15 cases are assigned to Judge Sean H. Lane.

In the Chapter 15 cases, the Debtors are represented by John K.
Cunningham, Esq., and Mark P. Franke, Esq., at White & Case LLP,
in New York; and Jason N. Zakia, Esq., Richard S. Kebrdle, Esq.,
and Laura L. Femino, Esq., at White & Case LLP, in Miami, Florida.

On July 22, 2016, the New York Court recognized the Brazilian
Proceedings as foreign main proceedings with respect to the
Chapter 15 Debtors, and granted certain additional related relief.

SANTA CATARINA: Fitch Affirms BB Long-Term IDR; Outlook Negative
Fitch Ratings has affirmed the State of Santa Catarina, Brazil's
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
at 'BB'. The Rating Outlook is Negative reflecting the Negative
Outlook on the Sovereign. Fitch has also affirmed Santa Catarina's
National long-term rating at 'AA-(bra)'/Stable Outlook.


The affirmation of the ratings reflects Estado de Santa Catarina's
fiscal performance, which aligns with Fitch Ratings' expectations.
Operating margins remained fairly stable and reached 4.4% in 2016.
The ratings are also based on the state's above average fiscal
autonomy in which proprietary tax revenues accounted for around
70% of the state's operating revenues and the fact that the
prevalent creditor is the Brazilian federal government.

Fitch expects Santa Catarina's economy to perform better than the
0.5% growth projected for Brazil in 2017, with more robust
recovery in 2018 in the national context. Santa Catarina's economy
benefited from exports, given its infrastructure of five ports, in
addition to the depreciated Brazilian real. The state's fiscal
performance is dependent on the Imposto Sobre Circulacao de
Mercadorias e Servicos tax, indirectly influenced by export-
related activities.

Despite its dependence on the federal government to implement much
needed structural changes in the state pension system, such as a
minimum retirement age and benefits to pensioners, the state has
been able to implement some corrective measures. Among those,
Fitch highlights the increase in pension contribution rates to 14%
from 11% of active-employee payroll, which will lead to savings up
to 10% of the annual pension insufficiency, which should reach
BRL3.6 billion in 2017. This corresponds to around 25% of annual
personnel payments.

The federal government remains the state's most relevant creditor,
responsible for 50% of the state's consolidated debt. In Fitch's
opinion, this portion is subordinated to other financial
obligations because the federal government provides states with
benefits, such as a change in the index that calculates debt
service related to federal debt. Financial debt represented 12.2
years of the current balance in 2016.

The capex level should reach the equivalent of 5.8% of total
expenditure in 2017, comparing poorly with 'BB' rated peers across
the region. The state does not operate any Public Private
Partnership programs. Santa Catarina presents adequate levels of
infrastructure and relatively better social economic indicators
than the Brazilian national average.

Santa Catarina does not have relevant delays in salary payments.
The amount of unpaid commercial short-term liabilities remained
low at 2.5% of operating revenues in 2016. The short-term
obligations are mainly composed of personnel payments and
investments. Outstanding cash of BRL9.2 billion covered
satisfactorily 113% of the state's obligations due in 2017.


Upgrade Factors: Fitch does not expect to rate Santa Catarina
above the Brazilian sovereign rating ('BB'/Negative Outlook). If
the state's direct debt/current balance is lower than the
equivalent of 10 years an upgrade in the national scale would be

Downgrade Factors: Should operating margins consistently fall
below 5%, a negative review of the ratings would follow. Moreover,
any further negative action affecting Brazilian sovereign ratings
could have a direct, corresponding effect on the state's ratings.


-- Fitch assumes a moderate level of sovereign support for Santa
    Catarina in comparison to the support received by other
    Brazilian states, even considering the weak institutional
    framework, and given that Santa Catarina's most relevant
    creditor and guarantor is the federal government;

-- Fitch expects to see some progress on the government's
    legislative agenda especially the items affecting subnationals
    such as pension reform and additional federal debt relief.

Fitch has affirmed the following:

State of Santa Catarina:

-- Long-Term Foreign Currency IDR at 'BB'; Negative Outlook;
-- Short-Term Foreign Currency IDR at 'B';
-- Long-Term Local Currency IDR at 'BB'; Negative Outlook;
-- Short-Term Local Currency IDR at 'B';
-- National Long-term rating at 'AA-(bra); Stable Outlook;
-- National Short-term rating at 'F1+(bra)'.

SAO PAULO: Fitch Affirms BB Long-Term IDR; Outlook Negative
Fitch Ratings has affirmed the Municipality of Sao Paulo, Brazil's
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
at 'BB'. The Rating Outlook is Negative, following the Negative
Outlook of the Sovereign. Fitch has also affirmed Sao Paulo's
long-term National rating at 'AA(bra)'/Stable.


The affirmation of the ratings reflects Fitch's belief that the
Municipality of Sao Paulo (the city) is capable of generating
operating margins compatible with peers. The affirmation also
reflects the fact that Sao Paulo is Brazil's wealthiest city,
generating roughly 10% of Brazilian GDP, and its moderate fiscal
autonomy - proprietary revenues accounted for an average of 54% of
operating revenues over the last five years.

Sao Paulo presented a slightly negative operating margin in 2016
(minus 0.2%), mostly the result of higher than expected operating
expenditures linked to the 2016 elections coupled with sluggish
revenue growth. In response, the new administration implemented
several measures to curb expenditures, and we expect operating
margins to recover to levels close to 5% until 2019.

In 2016, total net consolidated debt reached the equivalent of
70.8% of current revenue (versus 166.7% in 2015), now in line with
local peers. The drastic reduction was due to a change in the
index used in the past. The inflation index IPCA is now used with
a 4% annual adjustment. Since 2017, Sao Paulo has been allowed to
raise new financial debt, since the city is in compliance with the
1.2x debt-to-net revenues, as per the Local Fiscal Responsibility
Law. In August 2017, this ratio reached 0.9x.

The city's proprietary pension system, the Instituto de
Previdencia do Municipio de Sao Paulo (IPREM), saw an actuarial
deficit of BRL115.6 billion in 2016. This is equivalent to 2.6
years of the city's operating revenue and compatible with local
peers rated 'BB'. Sao Paulo has not yet adopted corrective
measures such as the creation of an actuarially balanced fund and
a complementary pension scheme for employees whose compensation
exceeds the ceiling of the Instituto de Seguridade Social.

Fitch believes the city could regain investment capacity following
new credit of BRL830 million until 2019. Investments in Sao Paulo
declined the equivalent of only 3.9% of total expenditures in
2016, also explained by the local elections, when operating
expenditures typically increase. The annual average of investments
made during the last five years is 7.2% and compares poorly with
the 'BB' peer average of 15%.

Fitch considers Sao Paulo's liquidity adequate to serve its
obligations. Unpaid commercial short-term liabilities declined to
3.9% of operating revenue in 2016 from 7.3% in 2015. Short-term
obligations are mainly composed of personnel payments and
investments. Outstanding cash of BR7.2 billion in August 2017
covered roughly 59% of the city's obligations due in 2017.


Upgrade Factors: Fitch does not expect to rate Sao Paulo above the
Brazilian sovereign rating (BB/Negative). The adoption of
corrective measures to ensure the long-term sustainability of Sao
Paulo's proprietary pension system could lead to a positive review
of the national scale rating.

Downgrade Factors: Any further negative action affecting Brazilian
sovereign ratings could have a direct corresponding effect on the
city's ratings. Additionally, operating margins repeatedly lower
than 2% could also lead to a negative rating action.


-- Fitch assumes a high level of sovereign support for Sao Paulo
in comparison to that apparently granted to other Brazilian local
governments even considering the weak institutional framework,
given the economic relevance of the city and the fact that its
most relevant creditor and guarantor is the federal government;

-- Fitch expects to see some progress on the government's
legislative agenda especially the items affecting local
governments such as pension reform.

Fitch has affirmed the following ratings:

-- Long-Term Foreign Currency IDR at 'BB'; Negative Outlook;
-- Short-Term Foreign Currency IDR at 'B';
-- Long-Term Local Currency IDR at 'BB'; Negative Outlook;
-- Short-Term Local Currency IDR at 'B';
-- Long-term National rating at 'AA(bra); Stable Outlook;
-- Short-term National rating at 'F1+(bra)'.


BANCO AMAMBAY: Moody's Revises Outlook to Pos.; Affirms Ba3 Rating
Moody's Investors Service has revised the outlook of Banco Amambay
S.A. to positive from stable. At the same time, Moody's affirmed
all of the bank's ratings and assessments.

The following ratings and assessments were affirmed:

Banco Amambay S.A.:

- Long and short term local currency deposit ratings of Ba3,
   positive outlook and Not-Prime

- Long and short term foreign currency deposit rating of Ba3,
   positive outlook and Not-Prime

- Adjusted baseline credit assessment of b1

- Baseline credit assessment of b1

- Long and short term counterparty risk assessments of Ba2 (cr)
   and Not-Prime (cr)


The positive outlook considers the resilience of the bank's asset
risk metrics to its very high rate of growth in recent years and
an expectation that the bank's historically volatile profitability
will stabilize at or near to its current high level, which in turn
will help it maintain its capital levels. The affirmation also
considers the bank's limited reliance on market funding and ample
liquidity and the moderate probability of government support.

Formally a foreign exchange services house, Banco Amambay has
grown significantly over the last three years in line with its
strategy to become a universal banking operation, predominantly
serving corporates and small to mid-sized enterprises. Following a
very rapid rise in 2015 of 54%, the loan book has grown by 26%
from December 2015 to June 2017 at a time when the Paraguayan
banking system contracted by 2.5%, following 2015's twin shocks of
currency depreciation and commodity price declines.

In spite of this growth, as well as the bank's sizable loan
exposures to Paraguay's volatile agricultural industry, the bank's
60 day problem loan ratio was less than 2.0% as of June 2017,
having risen by just 65 basis points since December 2015 and it
remained well below the system average of 3.2%. Although
restructured and refinanced loans accounted for another 2.2% of
the portfolio, this was are also lower than the system as a whole,
and the bank's reserve coverage also remains adequate at nearly
140% of problem loans. While problem loan formation has ticked up
since 2016, any rise in asset risk should be gradual.

After falling sharply in 2014 and 2015, Amambay's adjusted
capitalization ratio has since recovered modestly to a moderate
12.5%, although this remains lower than larger banks in the
system. The improvement in capitalization was driven in large part
by a strong rebound in profitability. In the first half of 2017,
the bank's annualized net income rose to a very high 3.2% of
tangible assets (unaudited), from 2.2% in calendar year 2016 and
just 0.8% in 2015, driven largely by increased lending volumes,
cost cutting initiatives and lower funding costs. In addition to
strong net interest margins, which rose to 4.9% in the first half
of 2017, the bank's bottom line also benefits from its foreign
exchange fees, which have been growing significantly but are
subject to volatility. While profitability will likely decline due
to an expected increase in provisioning expenses driven by the
seasoning of the bank's loan book growth, it should remain robust.

The rating affirmation also considered Banco Amambay's strong
funding profile, reflective of its proven access to stable and
inexpensive deposit funding. This represented almost 90% of total
funding as of June 2017, limiting the bank's exposure to more
costly and less reliable market funds. At the same time, liquid
assets represented nearly 30% of tangible banking assets,
providing ample liquidity.

Banco Amambay's ratings incorporate one notch of uplift as a
result of Moody's assessment of a moderate probability of
government support to the bank in an event of stress, reflective
of the bank's moderate deposit market share of 4.0%.


As reflected in the positive outlook, upward pressure on Amambay's
rating could arise if the bank is able to sustain its current
asset quality and capital indicators despite the continued
increase in loan growth, and profitability metrics show less
volatility than in the past. While downward pressure is unlikely
given the positive outlook, the outlook could stabilize if asset
quality continues to deteriorate modestly and the recent
improvements in capital and earnings prove unsustainable.

The principal methodology used in these ratings was Banks
published in September 2017.


INKIA ENERGY: S&P Rates New $450MM Sr. Unsecured Notes 'BB-'
S&P Global Ratings assigned its 'BB-' debt rating to Bermuda-based
power generation and electric distribution conglomerate Inkia
Energy Ltd.'s (Inkia; BB/Developing/--) $450 million senior
unsecured bullet notes due 2027. The company will use the proceeds
from the notes to repurchase its callable $450 million outstanding
notes that mature in 2021.

The 'BB-' rating on the proposed notes incorporates the structural
subordination of Inkia's senior unsecured debt in relation to its
subsidiaries' financial and operating obligations. In turn,
Inkia's 'BB' corporate credit rating reflects the company's
adequate competitive position in Peru, where it's a leading energy
producer. In addition, it incorporates the fact that Inkia's
operating subsidiaries in Peru, Nicaragua, and Panama, which
generate more than 60% of EBITDA as of December 2016, benefit from
long-term power purchase agreements (PPAs) with creditworthy
counterparties, with variable price formulas that allow the
subsidiaries to pass on cost increases. From a credit perspective,
S&P's view regulation in Peru as positive, given the transparent
and predictable rules, and high barriers to entry. The factors
mitigating the credit rating are Inkia's presence, although still
small, in riskier jurisdictions such as Bolivia, El Salvador, and
Jamaica; and the exposure to competition that's typical for
unregulated power utilities. In addition, Inkia's leverage is
relatively high considering we expect adjusted debt to EBITDA
around 4x in the next two years, funds from operations (FFO) to
debt of around 10%, and EBITDA interest coverage of approximately


  Inkia Energy Ltd.

   Corporate Credit Rating
    Global Scale              BB/Developing/--

  Ratings Assigned
  Inkia Energy Ltd.
   New Ratings
   Senior Unsecured           BB-

INKIA ENERGY: Moody's Assigns Ba3 Corporate Family Rating
Moody's Investors Service affirmed the Ba3 corporate family rating
(CFR) and senior unsecured rating of Inkia Energy Ltd (Inkia).
Moody's also assigned a Ba3 rating to Inkia's proposed 10-year
senior unsecured notes for up to $450 million. The outlook is

Inkia plans to use the proceeds raised in connection with the
proposed Notes issuance to fund the early repayment of its
outstanding $450 million senior unsecured Notes due in 2021 after
exercising the call option embedded in the Notes.


Moody's affirmation of the Ba3 rating reflects the structural
subordination considerations of Inkia's holding company debt
vis-a-vis the debt outstanding at its subsidiaries (currently
around 20%) as well as its reliance on its subsidiaries' dividend
distributions to service its debt.

The Ba3 rating factors in Inkia's reliance on its key
subsidiaries, namely the independent power producer (IPP) Kallpa
Generacion S.A. (Kallpa, Baa3 stable; 1,608 MW total natural gas
and hydroelectric capacity following its recent merger with its
sister company Cerro del Aguila S.A.) as well as the Guatemalan
regulated distribution companies Distribuidora de Electricidad de
Occidente, S.A. (DEOCSA) and Distribuidora de Electricidad de
Oriente, S.A. (DEORSA). DEOCSA and DEORSA guarantee the notes
issued by Energuate Trust (Ba2 stable).

Inkia has additional subsidiaries that provide for some modest
geographic diversification benefits. Yet, most of those
subsidiaries operate under less predictable market frameworks
(including several non-investment grade Latin American and
Caribbean countries) and they largely operate as either merchants
or under short-term contracts. These factors limit Inkia's ability
to rely on these cash flows to meet its capital requirements.

The Ba3 rating acknowledges the progressive improvement in Inkia's
consolidated and parent only credit metrics. Specifically, Moody's
anticipate that Inkia will record at year-end 2017 consolidated
Fund from Operations (FFO) to debt of around 12%, compared to
10.5% for the last twelve month period (LTM) period ended June
2017 and less than 8% over the last several years. Similarly,
Moody's anticipate that Inkia's parent only cash flows (POCF) to
holding company debt will exceed 20% at the end of 2017 compared
to PCOF to holding debt averaging 12% during the 2014-2016 period.
Factors contributing to the progressive improvement include the
acquisition of the Guatemalan subsidiaries (2016) and the full
year of operations of CdA (completed end of 2016) as well as the
anticipated reduction of Kallpa's exposure to the depressed spot
power prices in Peru after CdA's second power purchase agreement
becomes effective in January 2018. These incremental cash flows
along with the positive impact of some of the indexed contracted
revenues and modest deleverage at some of the operating
subsidiaries will likely contribute to an additional improvement
in the metrics, particularly the consolidated metrics, such that
they could become robust for the Ba3-rating category, barring any
material changes in Inkia's key assets and/or capital structure.

The Ba3 rating is tempered by the weak credit quality of Kenon,
Inkia's indirect parent company via IC Power Ltd (unrated), as
well as the uncertainties surrounding a possible change in Inkia's
ownership. This considers Kenon's recent disclosure of advanced
negotiations with a financial investor to agree to the terms of
the sale of IC Power Ltd's assets in Latin America and the
Caribbean. Moody's note that the bondholder protections embedded
in Inkia's new proposed Notes are significantly weaker than the
terms embedded in Inkia's existing Notes, particularly the Change
of Control and Limitations on Merger, Consolidation and Sale of
Assets clauses. The Limitations on Indebtedness are subject to
certain covenants, including meeting an unconsolidated interest
coverage of at least 2.0x while the clause also foresees material
carve outs which also allow Inkia, for example, to incur $200
million incremental long-term indebtedness in addition to $200
million debt for working capital needs. Given Moody's expectation
of an improvement in Inkia's metrics, including the parent only
interest coverage to nearly 4.0x at year-end 2017 (year-end 2016:
around 2.0x), Moody's calculate that these carve outs would allow
Inkia to more than double its outstanding holding-company debt and
still be able to meet the 2.0x threshold under the financial

The stable outlook factors in Moody's expectation that the
possible change in ownership will not result in a material change
in the company's business risk profile and portfolio of assets,
and in the company's track-record of prudent corporate financial
policies. Therefore, the stable outlook assumes that Inkia's
possible new shareholders will choose not to utilize a substantial
portion of the financial flexibility embedded in the proposed
Notes to materially increase the company's outstanding
indebtedness. The stable outlook assumes that Inkia will be able
to record an improvement in the credit metrics such that they
remain adequate for the Ba-rating category despite any incremental
indebtedness incurred to help fund the change in ownership.
Specifically, that Inkia's parent only cash flows to debt and
consolidated FFO to debt continues to approach 12%.


Limited prospects exist of an upgrade of Inkia's ratings over the
short/medium-term given the uncertainties around Inkia's
ownership, the impact on its financial policy, capital structure,
business risk profile and/or asset portfolio composition going
forward. However, positive momentum on the rating or outlook is
possible if a company with a strong track-record of prudent
financial policies become Inkia's ultimate controlling shareholder
and the issuer is able to record consolidated FFO to debt and POCF
to holding company debt that both exceed 16%, on a sustainable


Negative Momentum on Inkia's rating and/or the outlook is possible
following a deterioration in the operations of any of Inkia's key
subsidiaries which diminish their ability to upstream visible cash
flows; Downward pressure on the ratings of Inkia and/or its rated
subsidiaries, Kallpa Generacion (Baa3 stable) and Energuate Trust
(Ba2 stable), is likely following a material increase in their
outstanding debt and/or Inkia's finance and/or dividend policy
that Moody's deem too aggressive for the Ba3-rating category, for
example, following a material utilization of the financial
flexibility embedded in the proposed Notes Indentures in terms of
incremental indebtedness and/or dividend distributions (current
capacity limited to approximately $187 million). A material
deterioration in the unconsolidated and/or consolidated metrics is
also likely to result if Inkia fails to record consolidated FFO to
debt and POCF to holding company debt of around 12%, on a
sustainable basis.

The principal methodology used in these ratings was Unregulated
Utilities and Unregulated Power Companies published in May 2017.

Headquartered in Lima, Peru, Inkia Energy Limited (Inkia) is an
international holding company incorporated in Bermuda that holds
ownership stakes in unregulated power generation companies
domiciled in several Central and South American countries, as well
as regulated electric distribution operations in Guatemala.

INKIA ENERGY: Fitch Rates Proposed US$450MM Debt 'BB'
Fitch Ratings has assigned an expected rating of 'BB(EXP)' to
Inkia Energy Ltd's proposed USD450 million debt issuance due 2027.
The company expects to use the proceeds to refinance its existing
bond due 2021 and for general corporate purposes.


Credit Profile Linked to Peruvian Operations: Inkia's ratings are
supported by the solid credit profile of its most important
subsidiary, KallpaGeneracion S.A. (Kallpa). Kallpa's assets
consist of a 545MW base-load hydroelectric plant, and two thermal
generation plants with aggregate installed capacity of 1,063MW.
Inkia has a 74.9% participation in Kallpa, which is expected to
provide approximately half of Inkia's consolidated EBITDA as key
power purchase agreements (PPAs) are activated over the next 12

Kallpa pursues a contractual strategy that minimizes exposure to
the spot market. Its hydroelectric plant has signed PPAs for 483MW
out of an installed capacity of 545MW. Of these contracts, 200MW
are currently in effect, and by the beginning of 2018, nearly 75%
of its firm capacity will be under active contracts with high
credit-quality offtakers. As of 2016, approximately 96% of thermal
energy sales were contracted under U.S.-dollar-denominated PPAs,
with an average life of 5.9 years as of June 2017. These PPAs
support the company's cash flow stability through USD-linked
payments and pass-through clauses related to potential increases
in fuel costs or other costs due to changes in the regulatory
framework. The combination of these distinct asset types will
serve to offset seasonal volatility in spot prices and increase
contractual flexibility, strengthening cash flow stability and
improving Kallpa's already-strong competitive position in Peru.

Leverage to Improve: Inkia's stand-alone financial profile has
historically been weak for the rating category, as the company
adopting an aggressive growth strategy. Consolidated leverage
peaked at 8.5x in 2015 as a result of increasing debt to fund
expansion capex. Deleveraging in 2016 was slower than anticipated
due to attrition from Peru's regulated system by smaller
industrial users who instead negotiated bilateral PPAs directly
with local generators. The resulting EBITDA contraction at
Kallpa's thermal plant contributed to Inkia's continued high
leverage of 7.4x at year-end (YE) 2016. Leverage is expected to
decrease to around 5x in 2017 and around 4.5x in the medium term,
as the staggered activation of Kallpa's major contracts initially
linked to the completion of the hydroelectric plant will result in
rapid EBTIDA growth over the next 18 months. Also in the medium
term, Fitch expects Kallpa to see some benefit from increasing
spot prices.

Positive Reversal in FCF Trend: FCF has been negative in the last
four years due to aggressive capex. Total investments for Inkia's
two largest power generation projects in Peru accounted for USD1.3
billion. CdA's capex was USD975 million (61% debt-funded), and
USD377 million (82% debt-funded) was invested in Samay I, Inkia's
632MW cold-reserve thermal plant. Although, Inkia has indicated
its intention to increase investment in its Guatemalan DisCos, and
improve their technological and operational efficiency, we expect
a material reduction in consolidated capex for 2017, resulting in
positive FCF. This should be further supported by the full-year
operations of Kallpa's hydroelectric plant and Inkia's cold-
reserve thermal plant, which will receive fixed capacity payments
for 20 years. A moderate dividend policy is expected in order to
preserve positive FCF and allow for leverage reduction.

Debt Structurally Subordinated: Inkia's debt is structurally
subordinated to debt at the operating companies. Total debt at the
subsidiary level amounted to approximately USD2.1 billion, or
82.4% of total consolidated adjusted debt as of December 2016. The
bulk of this debt was represented by bank debt to finance company
projects and acquisitions. Although, Inkia's HoldCo debt remains
structurally subordinated to OpCo debt, the refinancing of more
than USD1 billion of project debt at the subsidiary level with
international bonds in 2016 and 2017 has effectively eliminated
onerous cash-trapping mechanisms that could have a negative impact
on cash-flow predictability to the HoldCo. Inkia's cash flow
depends on dividends received from subsidiaries and associated
companies, and received USD147 million at YE2016.

Geographic and Business Diversification: The company is focused on
diversifying its energy asset base in Latin American markets where
overall and per-capita energy consumption has a higher potential
for growth compared to developed markets. Inkia adopted an
aggressive plant expansion strategy during the last four years,
while the Energuate acquisition provided further geographic and
business diversification in Guatemala and in the electricity
distribution sector. Energuate's EBITDA is expected to be USD107
million in 2017. Fitch expects that operations in Peru
(BBB+/Stable), which include Kallpa and Samay, should account for
57% of 2016 consolidated EBITDA, followed by Guatemala with 24%
(BB). The remaining EBITDA (19%) should arise from assets located
mainly in Panama (BBB/Stable), Bolivia (BB-/Stable), Chile
(A/Stable), the Dominican Republic (BB-/Stable), El Salvador (CCC)
and Nicaragua (B+/Stable).


Locally, Inkia has limited peers, given its overall size and asset
diversification. In Peru, Fitch also rates Orazul Energy Egenor S.
en C. por A (BB/Stable). Orazul is expected to maintain gross
leverage above 5.0x through the rating horizon. Although lacking
Inkia's geographical diversification, Orazul benefits from local
asset mix similar to Inkia's subsidiary Kallpa Generacion S.A.
(BBB-/Stable), with both thermal and hydroelectric generation,
albeit on a smaller scale.

Inkia presents a generally weaker capital structure relative to
its large, multi-asset energy peers in the region. Its nearest
peer in this group is the Chilean generator, AES Gener (BBB-
/Negative Watch), which is also in the midst of a deleveraging
period. Prior to an announcement regarding delays and difficulties
surrounding the construction of AES Gener's Alto Maipo plant,
Fitch forecast deleveraging from around 5x to below 4x over the
next three years, which put the company at the upper limits of its
rating category. Following the announcement, Fitch placed AES
Gener on Negative Watch.

Colbun S.A. (BBB/Stable) and Engie Energia Chile S.A. (BBB/Stable)
compare favorably to Inkia, with leverage consistently at or below
3.0x, comfortably within the investment-grade rating category.


Fitch's key assumptions within its rating case for the issuer

- Kallpa (thermal): Southern Copper PPA fully recognized in 2018,
   GDP-linked demand growth;

- Kallpa (hydro): around 400MW of contracted capacity beginning
   in 2018; around 1,000 GWh of spot sales annually;

- Samay (cold-reserve): no Southern Gas pipeline through rating
   horizon; load factor below 5%, fully passed through;

- Capacity payments annually adjusted by PPI;

- Peru: average energy spot price of $12/MWh until 2021;

- Energuate: demand growth generally in line with GDP forecast
   (approximately 3.5%);

- Approximately USD460 million dividends over next five years;

- Approximately USD440 million in capex over next five years.


Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action

- A positive rating action could be considered as a result of
   leverage reduction below 4x on a sustainable basis and/or
   consistently conservative cash flow management.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action

- A negative rating action could be triggered by a combination
   of the following: consolidated gross leverage remains above
   4.5x over the medium term following additional investment
   opportunities undertaken without an adequate amount of
   additional equity; reduction in cash flow generation due to
   adverse regulatory issues and deterioration of Inkia's
   contractual position; aggressive dividend policy; and/or
   Inkia's asset portfolio becomes more concentrated in countries
   with high political and economic risk.


Inkia's liquidity relies primarily on its cash on hand and readily
monetizable assets of USD173 million as of YE2016. The company has
historically benefitted from access to local capital markets to
finance investment projects at the subsidiary level. This year,
two of its subsidiaries have replaced nearly USD1 billion in
aggregate of syndicated loans with international bonds. In April,
Energuate Trust (BB/Stable) issued USD330 million to replace
existing debt as well as a bridge loan of USD120 million used to
fund Inkia's 2016 acquisition of the Guatemalan DisCos. In August,
Kallpa replaced the syndicated bank facility used during its
hydroelectric plant's construction phase with a USD650 million
international bond. Fitch estimates that over 90% of Inkia's
consolidated debt is scheduled to mature after 2020, including its
2021 USD450 million bond.


Fitch currently rates Inkia as follows:

-- Long-Term Foreign Currency IDR at 'BB';
-- Long-Term Local Currency IDR at 'BB';
-- Senior unsecured notes due 2021 at 'BB'.

The Rating Outlook is Stable.

T R I N I D A D  &  T O B A G O

CARIBBEAN CEMENT: Reports Profit After J$81MM Loss Last Year
RJR News reports that Caribbean Cement Limited is reporting
improved profits for the three months ending September.

For the quarter, the company earned J$747.8 million compared with
a loss of J$81 million for the corresponding period last year,
according to RJR News.

It did so based on revenues of J$4.1 billion, an improvement from
the J$3.6 billion in the prior year, the report notes.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on
Aug. 18, 2014, RJR News disclosed that Caribbean Cement said it
racked up a loss of $89 million in the three months to the end of
June, compared to a $359 million profit in the corresponding
period a year ago.  The report noted that Caribbean Cement said
the loss was due to the shutdown of a clinker line to facilitate
maintenance work.

According to a TCR-LA report on Aug. 7, 2013, RJR News related
that Caribbean Cement Company Limited suffered a consolidated loss
of J$137 million for the first six months of 2013 down from J$1.2
billion during the corresponding period last year, according to
RJR News.  The report related that the loss resulted from J$701
million of non-cash foreign exchange losses compared to J$136
million in 2012.


PDVSA: Oil Bonds Plunge With 24 Hrs to Go Until Payment Is Due
Christine Jenkins and Ben Bartenstein at Bloomberg News report
that Venezuela's state oil company has a hefty payment due Oct. 27
and the lack of any signs or comments about the funds being
transferred has the market in a late stage of panic.

Petroleos de Venezuela S.A.'s dollar bonds tumbled more than four
cents with yields on notes due 2020 jumping more than 2 percentage
points to 17.3 percent on Oct. 26, according to Bloomberg News.
The probability of PDVSA defaulting on its debt over the next year
has jumped to 79 percent with the odds over the next five years at
99 percent, according to credit default swap trading, Bloomberg
News notes.

Venezuela is already two weeks late on coupons for a slew of other
bonds.  Those payments had a grace period -- a buffer of sorts
that gives the country an additional 30 days to work out the
technical glitches and deliver the cash, Bloomberg News says.  The
principal portions of the payments owed over the next week contain
no such language, Bloomberg News discloses.  Miss the due date and
bondholders can cry default.

"Fear is higher now because the deadline is approaching quickly,"
said Lutz Roehmeyer, who helps oversee about $14 billion at
Landesbank Berlin Investment GmbH.  "I am still confident that
they find a creative way to pay," Bloomberg News relays.

If the money isn't in accounts by creditors may opt to wait until
early this week to see if the funds arrive late since there are
few incentives to accelerate the debt and spark a potential cross
default on the rest of the issuer's debt, Bloomberg News says.
Credit agencies will also be watching closely on whether to
downgrade the oil giant deeper into junk, Bloomberg News adds.

As reported in the Troubled Company Reporter-Latin America on
Oct. 24, 2017, S&P Global Ratings placed its ratings on Petroleos
de Venezuela S.A. (PDVSA) on CreditWatch with negative
implications, including its 'CCC-' corporate credit ratings.


* BOND PRICING: For the Week From Oct. 23 to Oct. 27, 2017

Issuer Name               Cpn     Price   Maturity  Country  Curr
-----------               ---     -----   --------  -------   ---

BA-CA Finance Cayman Lt   0.518    62.07               KY    EUR
AES Tiete Energia SA      6.7842   1.109  4/15/2024    BR    BRL
Argentina Bogar Bonds     2       39.36   2/4/2018     AR    ARS
Automotores Gildemeister  8.25    73.25   5/24/2021    CL    USD
Automotores Gildemeister  6.75    67      1/15/2023    CL    USD
Automotores Gildemeister  8.25    73.25   5/24/2021    CL    USD
Automotores Gildemeister  6.75    65.5    1/15/2023    CL    USD
CA La Electricidad        8.5     63.664  4/10/2018    VE    USD
Caixa Geral De Depositos  1.439   63.167               KY    EUR
Caixa Geral De Depositos  1.469                        KY    EUR
CSN Islands XII Corp      7       68                   BR    USD
CSN Islands XII Corp      7       66.266               BR    USD
Decimo Primer Fideicomiso 6       53.225 10/25/2041    PA    USD
Decimo Primer             4.54    43.127 10/25/2041    PA    USD
Dolomite Capital         13.217   73.108 12/20/2019    CN    ZAR
Enel Americas SA          5.75    56.172  6/15/2022    CL    CLP
Gol Linhas Aereas SA     10.75    35.861  2/12/2023    BR    USD
Gol Linhas Aereas SA     10.75    35.601  2/12/2023    BR    USD
Inversora Electrica       6.5     67.625  9/26/2017    AR    USD
Inversora Electrica       6.5     67.625  9/26/2017    AR    USD
MIE Holdings Corp         7.5     64.78   4/25/2019    HK    USD
MIE Holdings Corp         7.5     64.982  4/25/2019    HK    USD
NB Finance Ltd            3.88    61.816  2/7/2035     KY    EUR
Noble Holding             7.7     74.433  4/1/2025     KY    USD
Noble Holding             5.25    56.279  3/15/2042    KY    USD
Noble Holding             8.7     71.881  4/1/2045     KY    USD
Noble Holding             6.2     60.129  8/1/2040     KY    USD
Noble Holding             6.05    58.38   3/1/2041     KY    USD
Odebrecht Finance Ltd     7.5     42.5                 KY    USD
Odebrecht Finance Ltd     5.125   56.938  6/26/2022    KY    USD
Odebrecht Finance Ltd     7       68.053  4/21/2020    KY    USD
Odebrecht Finance Ltd     7.125   41.366  6/26/2042    KY    USD
Odebrecht Finance Ltd     4.375   40.002  4/25/2025    KY    USD
Odebrecht Finance Ltd     5.25    39.211  6/27/2029    KY    USD
Odebrecht Finance Ltd     6       44.75   4/5/2023     KY    USD
Odebrecht Finance Ltd     5.25    39.018  6/27/2029    KY    USD
Odebrecht Finance Ltd     7.5     42.95                KY    USD
Odebrecht Finance Ltd     4.375   40.363  4/25/2025    KY    USD
Odebrecht Finance Ltd     7.125   41.635  6/26/2042    KY    USD
Odebrecht Finance Ltd     6       52.625  4/5/2023     KY    USD
Odebrecht Finance Ltd     5.125   55.873  6/26/2022    KY    USD
Odebrecht Finance Ltd     7       67.368  4/21/2020    KY    USD
Petroleos de Venezuela    8.5     74.5   10/27/2020    VE    USD
Petroleos de Venezuela    6       30.458  5/16/2024    VE    USD
Petroleos de Venezuela    6       30.517 11/15/2026    VE    USD
Petroleos de Venezuela    9.75    35.677  5/17/2035    VE    USD
Petroleos de Venezuela    9       39.279 11/17/2021    VE    USD
Petroleos de Venezuela    5.375   30.267  4/12/2027    VE    USD
Petroleos de Venezuela    8.5     72.5   10/27/2020    VE    USD
Petroleos de Venezuela   12.75    45.278  2/17/2022    VE    USD
Petroleos de Venezuela    6       30.367  5/16/2024    VE    USD
Petroleos de Venezuela    6       30.387 11/15/2026    VE    USD
Petroleos de Venezuela    9       39.316 11/17/2021    VE    USD
Petroleos de Venezuela    9.75    35.893  5/17/2035    VE    USD
Petroleos de Venezuela    6       28.346 10/28/2022    VE    USD
Petroleos de Venezuela    5.5     30.123  4/12/2037    VE    USD
Petroleos de Venezuela   12.75    45.23   2/17/2022    VE    USD
Polarcus Ltd              5.6     75      3/30/2022    AE    USD
Provincia del Chubut      4              10/21/2019    AR    USD
Siem Offshore Inc         4.04527 69.5   10/30/2020    NO    NOK
Siem Offshore             3.75176 65.75  12/28/2021    NO    NOK
STB Finance               2.05771 56.243               KY    JPY
Sylph Ltd                 2.367   64.438  9/25/2036    KY    USD
US Capital                1.63611 54.774 12/1/2039     KY    USD
US Capital                1.63611 54.774 12/1/2039     KY    USD
USJ Acucar                9.875   67     11/9/2019     BR    USD
USJ Acucar                9.875   67     11/9/2019     BR    USD
Venezuela                13.625   68.25   8/15/2018    VE    USD
Venezuela                 7.75    44.065 10/13/2019    VE    USD
Venezuela                11.95    40.785  8/5/2031     VE    USD
Venezuela                12.75    45.19   8/23/2022    VE    USD
Venezuela                 9.25    39.645  9/15/2027    VE    USD
Venezuela                11.75    40.005 10/21/2026    VE    USD
Venezuela                 9       36.285  5/7/2023     VE    USD
Venezuela                 9.375   37.69   1/13/2034    VE    USD
Venezuela                13.625   72.25   8/15/2018    VE    USD
Venezuela                 7       34.23   3/31/2038    VE    USD
Venezuela                 7       59.19  12/1/2018     VE    USD


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.
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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
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USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
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Chapman, Editors.

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

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