TCRLA_Public/171101.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

               Wednesday, November 1, 2017, Vol. 18, No. 217


                            Headlines



A R G E N T I N A

ARGENTINA: Attorney General Tenders Resignation
ARGENTINA: S&P Raises SCR to 'B+' On Expected Economic Improvement
BANCO DE LA PROVINCIA: S&P Raises ICR to 'B+', Outlook Stable
* S&P Raises Global Scale ICRs on Five Argentinean LRGs to 'B+'
* S&P Raises Currency Ratings on Six Argentine Companies to 'B+'

* S&P Raises ICR on Three Argentinean Banks to 'B+'


B R A Z I L

BANCO BONSUCESSO: Moody's Affirms B2 Global Deposit Ratings


C A Y M A N  I S L A N D S

BANCO MERCANTIL: Moody's Affirms Ba2(hyb) Jr. Sub. Debt Ratings
FIDEICOMISO FINANCIERO: Moody's Rates ARS10.532MM Certs 'Ca.ar'


C U B A

CUBA: Offers Investment Opportunities Despite US Opposition


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: September Arrivals Fall 13.3% Amid Hurricanes


J A M A I C A

JAMAICA: IMF Approves US$1.68 Billion Access After SBA Review


M E X I C O

MEXICO: GDP Contracted in Third Quarter as Disasters Took Toll


                            - - - - -



=================
A R G E N T I N A
=================


ARGENTINA: Attorney General Tenders Resignation
-----------------------------------------------
Continental News reports that Argentine Attorney General Alejandra
Gils Carbo presented to President Mauricio Macri her resignation,
which will become effective on Dec. 31.

The AG, who is at odds with the conservative president -- who
considers her to be a militant supporter of late President Nestor
Kirchner and his wife and successor, Cristina Fernandez de
Kirchner -- said in a letter to Macri that her work at the Public
Ministry was "finished," going on to express "the hope that this
this decision deters reforms that . . . . rupture the equilibrium
that must prevail within the system of the administration of
justice," according to Continental News.

The situation arose after a judge, on Oct. 12, decided to bring
Gils Carbo -- who has been in the post since 2012, when she was
named AG by Fernandez and confirmed by Congress -- to trial for
allegedly defrauding the state in the purchase of a property by
the Public Ministry in 2013.

In a missive directed to Macri and posted on the official Website
of the Attorney General's Office, the AG said that "at this
stage", she has become convinced that remaining in her post would
"redound in decisions that will substantially affect the autonomy
of the Public Ministry," the report notes.

The AG said that "the same reasons" that inspired her to serve
"for 20 years in the institution and for more than 30 in the ...
administration of justice" now motivate her to "distance" herself
from a post where she said she had "deepened the transformation"
of the Public Ministry to bring it "current with the times," the
report relays.

After Macri became president in December 2015 and after 12 years
of "Kirchnerista" governments, Gils Carbo remained in her post
despite pressure from the administration, which accused her of not
moving forward in corruption cases affecting former top
Kirchnerista officials and ruling against members of the new
government, although it did not succeed in launching legal
proceedings against her, the report adds.


ARGENTINA: S&P Raises SCR to 'B+' On Expected Economic Improvement
------------------------------------------------------------------
S&P Global Ratings, on Oct. 30, 2017, raised its long-term
sovereign credit ratings on the Republic of Argentina to 'B+' from
'B'. The outlook on the long-term ratings is stable. S&P said, "We
also affirmed our short-term sovereign credit ratings on Argentina
at 'B'. At the same time, we raised our national scale ratings to
'raAA' from 'raA+'. In addition, we raised our transfer and
convertibility assessment to 'BB-' from 'B+', in line with our
assessment of sustained local access to foreign exchange."

OUTLOOK

S&P said, "The stable outlook incorporates our expectation that
the government will have greater political capacity to continue
pursuing its economic agenda, resulting in more predictable
economic policy and gradually more institutional and governance
effectiveness. Our stable outlook also incorporates our
expectation of moderate and sustained economic growth around 3%
for the next three years and higher investment."

A more effective monetary policy that results in sustained lower
inflation, a reduction in external vulnerabilities, or a higher-
than-expected fiscal consolidation could improve Argentina's
currently weak financial profile, potentially leading to a higher
rating over the next two years.

Conversely, S&P would lower the rating within the next two years
if it perceives less-than-expected political capacity to approve
and implement policies that sustain macroeconomic stability. An
unexpected increase in political polarization that could block or
reverse the government's reform agenda and hurt economic policy
implementation, or an inadequate response to adverse external
developments could result in a downgrade.

RATIONALE

The rating action reflects greater confidence about the
government's political capacity to continue pursuing its economic
agenda, resulting in more predictable economic policy and
governance. In this context, S&P expects moderate but sustained
economic growth in the next three years and lower potential
volatility.

The Oct. 22 midterm legislative elections boosted President
Mauricio Macri's Administration's standing in the Congress. While
the governing coalition -- "Cambiemos" -- fell short of a majority
in both chambers, its electoral gains consolidate its political
standing and reduce the risk of a shift in economic policies in
the next couple of years and after the 2019 national elections.
S&P expects that the government will work with segments of the
political opposition to pass laws in Congress, gaining consensus
and agreements with the country's governors (who have influence
over their Congressional delegations).

The ratings on Argentina remain constrained by its external
vulnerabilities stemming from its reliance on external funding to
finance still-high fiscal deficits. Although declining, the
expected fiscal deficits will result in an average increase in
general government debt of about 10% of GDP in 2017-2020. On the
other hand, the ratings are supported by moderate net debt,
estimated at 48% and 51% of GDP by the end of 2017 and 2018,
respectively, and a monetary policy characterized by a free-
floating currency regime. Inflation remains high, but S&P expects
it to continue falling as the central bank gradually gains policy
credibility and boosts the effectiveness of its monetary policy.
Argentina's GDP per capita measured in U.S. dollars is estimated
at $13,849 for 2017, and we expect it to grow 2% annually, on
average, over the next three years.

Institutional and economic profile:

-- S&P expects better policy predictability and higher investment
    will sustain moderate and more stable economic growth in the
    next three years.

-- The results of the recent midterm elections bode well for more
    effective governability and political capacity to continue
    implementing economic policies to address imbalances.

-- S&P expects economic growth to reach 2.8% in 2017, up from an
    economic contraction of 2.3% in 2016, and to remain around 3%
    in the next three years.

The 2.8% expected growth for 2017 is mainly based on higher public
works related to infrastructure and renewed investment mainly in
agriculture, energy and telecommunications, and automotive and
agriculture machinery, among others. At the same time, consumption
has slowly accelerated throughout the year as the purchasing power
of salaries recovered (once salary negotiations were settled and
as monthly inflation decelerated).

S&P expects economic growth to accelerate toward 3% in 2018 and
beyond, assuming gradually improving investor sentiment and
consumer confidence. A positive recovery in Brazil could push
growth further in 2018, while less favorable global conditions are
the main downward risk.

The recent election results raise the prospect that the government
will have more political capacity to continue pursuing its
economic plan. S&P expects the government to pass important laws,
including the 2018 budget and a new fiscal responsibility law, tax
reform (seeking a simpler and more efficient tax structure), and
legislation that would improve labor costs and education and
enhance the local capital markets.

The passage of key laws will help improve the country's poor
external competitiveness in the context of a real appreciation of
the local currency. It would also be a signal of the government's
commitment to further improve economic conditions. That could, in
turn, enhance investment prospects and result in more sustainable
and potentially higher economic growth.

After the recent midterm legislative elections results, Cambiemos
will be increasing its seats in the Senate and in the House of
Representatives, but the balance of power is not changing because
the government will continue to lack majority in both chambers.
The government will still need to negotiate with different
factions of the opposition, along with provincial governors who
exert influence over members of Congress, for the passage of laws.

S&P said, "The Macri Administration would likely be in a stronger
position to advance its policies because we expect the opposition
to remain divided after the poor results of the main potential
Peronist leaders. We also expect that the election results will
bolster the government's political standing, raising the
likelihood of further gradual economic adjustments."

The results of ongoing corruption investigations into former and
current government officials will be key as an indicator of
independent justice and the accountability of institutions.
Gradually developing a track record of respect for rule of law
would also help to reinforce the stability and predictability of
political institutions and framework.

Flexibility and performance profile:

-- Argentina is vulnerable to global conditions because it is
    still highly reliant on external funding for financing large
    fiscal and current account deficits.

-- S&P expects the current account deficit to increase toward 4%
    of GDP in 2019 amid an economic recovery and a real
    appreciation of the local currency.

-- Argentina will remain dependent on external financing for
    covering its fiscal and current account deficits, highlighting
    its vulnerability to a shift in global market conditions.

-- S&P estimates the change in general government debt at an
    average of 10% of GDP in 2017-2020 resulting from the large
    fiscal deficit and the adjustments in the debt level coming
    from exposure to foreign currency and indexation to inflation.

-- S&P expects inflation to decline to 22% in 2017 and continue
    decelerating thereafter.

S&P said, "The combination of increasing imports linked to
economic recovery and investment with a timid recovery in exports
is turning the trade balance into a deficit in 2017 from a surplus
in 2016. As long as competitiveness factors that reduce internal
costs (other than the exchange rate) don't improve enough to
compensate for the real appreciation of the exchange rate, we
expect only a moderate recovery of exports. We expect the current
account deficit in terms of GDP to be 3.5% in 2017 and widen to 4%
of GDP by 2019."

Having access to international capital markets was key to the
government's plan to correct Argentina's macroeconomic imbalances.
An enhanced inflow of external funding is boosting liquidity for
the sovereign, as well as for Argentine provinces and the private
sector, helping to stabilize the economy. Increasing reliance on
external financing to finance the fiscal gap, while critical for
the government's fiscal and economic plans, will weaken
Argentina's external indicators. Argentina was able to issue $22
billion in the international capital markets in 2016 and $14
billion so far in 2017, while provinces already issued around $7
billion in 2016 and $3.9 billion in 2017. Narrow net external debt
to current account receipts is estimated at 187% in 2017 and an
average of 198% in the next three years, while gross external
financing needs to usable reserves and current account receipts
are expected to reach 115% in 2017 and 108% in 2019.

Since taking office in 2015, the government announced the gradual
reduction of the fiscal deficit as one of the main priorities and
set primary fiscal targets for the four years until 2019. So far
in 2017, the government has shown it's committed to complying with
its fiscal targets by increasing public services tariffs and
negotiating with unions to cap salary increases, while the central
bank increased its interest rate, despite it being an election
year. S&P expects the general government to post a deficit
equivalent to 6.7% of GDP in 2017 and gradually reduce it in the
following years, to around 5% in 2019.

While the automatic reduction of subsides in the gas and
electricity sectors that was approved in 2016 will probably
represent a 0.5% of GDP cut in expenses in the next three years,
there is still the need for further adjustments to close the gap
and meet the fiscal targets. Given Argentina's rigid expenses
structure, margins for cutting expenses are limited.

The government plans to reduce other current spending while
improving efficiency in capital works and sustaining economic
growth. In this regard, the government is working to quickly
advance the implementation of public-private partnerships that
would help finance capital works jointly with the private sector,
leaving the government with some extra fiscal space.

S&P said, "We expect general government debt will continue to rise
gradually because of continuous, although declining, fiscal
deficits. In addition, an expected nominal currency depreciation
as well as inflation indexation will affect debt dynamics. In this
context, we expect Argentina's net general government debt to
gradually increase to 48% of GDP in 2017 and 53% of GDP at year-
end 2019 from 46% in 2016. Nonetheless, as a result of the limited
access to international capital markets, new debt incurred in the
past years was mainly domestic debt, being 40% held by government-
owned agencies, diminishing the rollover risk. Debt is still
highly exposed to foreign currency risk since 70% is denominated
in foreign currency.

"We expect general government interest over general government
revenues to increase and remain above 5% in 2017-2020."

Inflation is expected to decline to 22% in 2017 and continue
decelerating to 12% in 2019. Since 2016, the central bank has
moved to an inflation-targeting regime and has announced its
inflation target for the next two years. Its objective is an
inflation rate of 12%-17% in 2017, 8%-12% in 2018, and single
digits in 2019. The credibility of the central bank's inflation
target will be key to setting price increase expectations and
aligning salary negotiations with expected levels of inflation.

At the same time, the central bank has significantly reduced the
financing of the central government to Argentine peso (ARP) 150
billion in 2017 (including both transitory advances plus
profitability gains), equivalent to 1.5% of GDP, from about 5% of
GDP in 2015. The central bank also has been using interest rates
to control money supply, turning real interest rates to positive
territory.

Several factors support S&P's expectation that inflation will
decline. These include significantly reducing the central bank
financing of the fiscal deficit, establishing a clear mandate for
price stability by moving toward inflation targeting, and managing
positive real interest rates, as well as building on the central
bank's credibility and independence.

Since December 2015, the peso has moved freely and there are no
restrictions for accessing foreign currency. The central bank
views the exchange rate as an absorber for external shocks and is
willing to act in the exchange rate market to smoothen potential
volatility.

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable (see 'Related Criteria And Research'). At
the onset of the committee, the chair confirmed that the
information provided to the Rating Committee by the primary
analyst had been distributed in a timely manner and was sufficient
for Committee members to make an informed decision.

After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

The committee agreed that the economic assessment had improved.
All other key rating factors were unchanged.

The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.

RATINGS LIST

  Upgraded; Ratings Affirmed
                                         To             From
  Argentina (Republic of)
   Sovereign Credit Rating           B+/Stable/B    B/Stable/B

  Upgraded
                                         To             From
  Argentina (Republic of)
   Argentina National Scale          raAA/Stable/-- raA+/Stable/--
   Transfer & Convertibility Assessment    BB-            B+
   Senior Unsecured                        B+             B


BANCO DE LA PROVINCIA: S&P Raises ICR to 'B+', Outlook Stable
-------------------------------------------------------------
S&P Global Ratings raised its issuer credit ratings on Banco de la
Provincia de Buenos Aires (BPBA) to 'B+' from 'B'. The outlook
remains stable.

The upgrade of BPBA follows the upgrade of the sovereign and the
province of Buenos Aires and incorporates benefits from the
stronger BICRA score on Argentina.

The upgrade of the sovereign reflects greater confidence about the
government's political capacity to continue pursuing its economic
agenda, resulting in a more predictable economic policy and
governance. Therefore, S&P expects moderate and consistent
economic growth for the next three years as well as lower
volatility in economic performance. The October 22 mid-term
legislative elections boosted the current administration's
standing in Congress. While the governing coalition "Cambiemos"
fell short of majority in both chambers, its electoral gains
consolidate its political standing and reduced the risk of a shift
away from current economic policies in the next couple of years
and after 2019 national elections. S&P expects the government to
work with segments of the political opposition to pass laws in
Congress, gaining consensus and agreements with the governors of
provinces.

The stable outlook on BPBA for the next 12 months reflects the
stable outlook on the province of Buenos Aires -- which mirrors
the stable outlook on the sovereign -- and S&P's view that the
bank will maintain its solid competitive position as the second-
largest public lender in Argentina. S&P expects the bank to
maintain its large and stable customer base, and asset quality
metrics to continue to be manageable, despite an increase in
nonperforming loans.

S&P said, "We could raise the ratings on BPBA in the next 12 month
if we were to upgrade the sovereign and revise the BICRA score on
Argentina to a stronger category.

"We could lower the ratings on BPBA if we were to downgrade the
sovereign and the province or if the bank's risk-adjusted capital
ratio falls to a very weak level of below 3%."


* S&P Raises Global Scale ICRs on Five Argentinean LRGs to 'B+'
---------------------------------------------------------------
S&P Global Ratings raised the foreign and local currency global
scale issuer credit ratings on the city of Buenos Aires, and the
provinces of Cordoba, Buenos Aires, Mendoza, and La Rioja to 'B+'
from 'B'. S&P also affirmed the 'B' ratings on the provinces of
Entre Rios, Neuquen, and Salta. The rating on the province of
Jujuy remains unchanged from the last review on Sept. 5, 2017. The
outlooks on all these ratings are stable.

OUTLOOK

The stable outlook on the five LRGs that were upgraded mirrors the
stable outlook on the sovereign local currency rating. The stable
outlook incorporates S&P's expectation that Argentina's government
will have greater political capacity to continue pursuing its
economic agenda, resulting in a more predictable economic policy
and, gradually, more institutional and governance effectiveness.
The stable outlook on those LRGs that were upgraded also
incorporates S&P's opinion that they will keep working on
maintaining an adequate fiscal stance while recurring to ongoing
external financing during 2017-2018.

Downside scenario

S&P said, "We would lower the ratings on these five LRGs within
the next two years if we downgrade Argentina as a result of lower
political capacity to approve and implement policies that sustain
macroeconomic stability. An unexpected increase in political
polarization that could block or reverse the government's reform
agenda and hurt economic policy implementation, or an inadequate
response to adverse external developments could result in a
downgrade. LRGs that operate in weak institutional frameworks are
not likely to be rated above the sovereign ratings. We could also
downgrade these LRGs if their fiscal performance and debt
trajectory is worse than our current expectations."

Upside scenario

S&P said, "Given that we don't believe Argentina's LRGs meet the
conditions to be rated higher than the sovereign, we could only
raise our ratings on the City of Buenos Aires and the provinces of
Cordoba, Buenos Aires, Mendoza, and La Rioja if we were to raise
the sovereign local and foreign currency ratings. Such an upgrade
would have to be accompanied by consistent strengthening in
Argentina's institutional framework for LRGs and/or continued
improvements in the LRGs individual creditworthiness. That means
that we will take into account LRGs' medium and long term
financial planning, as well as their track record of working
toward fiscal sustainability."

For those LRGs that are not rated at the same level as the
sovereign, financial management effectiveness in strengthening
their fiscal stance will be crucial to improving creditworthiness.

RATIONALE

The global scale foreign and local currency ratings on these five
LRGs primarily reflect their ongoing efforts to improve their
fiscal sustainability in the medium and long term, while still
facing the challenge of financing budget gaps in the next few
years. S&P said, "Although we recognize that there are differences
in the individual credit profiles of these five LRGs, overall they
have shown more resilience than their other national peers over
the last five years. During the President Macri administration, we
have also observed a more institutionalized, transparent, and
formal way of solving issues between the federal government and
LRGs. After the Oct. 22 national legislative elections, we think
that there is renewed political support of Macri's policy
proposals to move towards fiscal sustainability and economic
growth. So, it is more likely that LRGs with stronger individual
credit profiles benefit from a sovereign upgrade."

S&P said, "All Argentinean LRGs still operate under a very
volatile and unbalanced institutional framework. However, we
believe that there is a positive trend in the predictability of
the outcome of potential reforms and pace of implementation. We
expect moderate, but not radical, reforms to the distribution of
federal tax revenues to the provinces. Also, we observe that, as a
result of more consistent support from the federal government,
LRGs from different political parties seem to have a greater
ability to measure its short and longer term impact on their
finances.

"We do not have ratings above the sovereign when LRGs'
institutional frameworks are volatile, unbalanced, and overall
underfunded. Also, according to our methodology the local currency
ratings on Argentinean LRGs could be above the sovereign ratings
if there's a measurable likelihood that any of their credit
characteristics will show more strength than the sovereign under
economic or political stress. In Argentina, we don't consider that
LRGs meet the criteria under which we would rate them higher than
the sovereign. This is mostly due to insufficient liquidity to
cover all debt obligations in a stress scenario, as well as the
still-weak institutional framework in which LRGs operate."

The local currency ratings on the city of Buenos Aires and the
Province of Cordoba are one notch below their 'bb-' stand-alone
credit profile (SACP). The SACPs of the provinces of Buenos Aires,
La Rioja, and Mendoza are 'b +', while Neuquen, Entre Rios, and
Salta are 'b'. The province of Jujuy's SACP is 'b-'. The SACP is
not a rating, but rather a means of assessing the intrinsic
creditworthiness of an LRG under the assumption that there is no
sovereign rating cap.

S&P said, "The SACP results from the combination of our assessment
of an LRG's individual credit profile and the institutional
framework in which it operates. Our assessment of the
institutional framework measures how the predictability,
reliability, and supportiveness of public finance systems and
legislative frameworks are likely to affect an LRG's ability to
service debt in the long term.

"After the legislative elections on Oct. 22, 2017, President Macri
confirmed national political support to his policies and plans.
So, we expect that initiatives such as the Fiscal Responsibility
Law will likely be enacted in 2018 and that they will tackle LRGs'
medium and long term fiscal challenges, reining in debt. Although
there is a constructive dialogue between the federal and
provincial governments, we consider that it could eventually
strengthen the ratings if we see a system wide improvement in the
institutional framework in the next few years."

Compared to national peers, the city of Buenos Aires' and the
Province of Cordoba's individual credit profiles are likely to
remain stronger than their national peers during 2018-2019:

-- The city of Buenos Aires has shown unique fiscal strengths
    during the past few years, as well as the highest GDP per
    capita in Argentina. The city has consistently posted
    operating surpluses, which it's likely to maintain in the next
    couple of years. This track record has allowed the city to
    have consistently higher capital expenditures (capex) than its
    domestic peers. Debt stock is expected to remain at above 42%
    of operating revenues by 2019. Although the city's debt will
    have high exposure to foreign currency, S&P expects its
    financial management to keep working on reducing exposure to
    market risk through prudent debt and liquidity management over
    the next two years.

-- The province of Cordoba has also maintained operating
    surpluses consistently over the last five years, and it is
    likely to continue with operating balances above 10% of its
    annual revenues. Considering Cordoba's prudent financial
    management, capex is likely to increase significantly in 2017
    while debt is expected to remain low--compared to national
    peers--at levels below 25% of annual operating revenues.

The provinces' fiscal performances are expected to gradually
improve over the next three years as the Argentine economy
recovers. Operating expenditures (mostly public-sector employee
salaries) have been pressuring provincial budgets as a result of
still-high inflation. S&P believes that for some provinces, such
as Neuquen, Entre Rios, Salta and Jujuy, the fiscal challenges
have been greater, so the recovery will be slower than for other
national peers. So commitments to effectively sustain budget
controls and work with a more strategic vision to achieve fiscal
sustainability are increasingly relevant to the evolution of LRGs'
creditworthiness in Argentina. Overall, LRGs' liquidity has
remained weak despite the access that LRGs have had to the capital
markets. Most financial management at the provincial level has the
challenge of using future debt proceeds to strengthen capital
programs and boost investment while effectively controlling
operating spending. For 2018 and 2019, we expect:

-- The province of Buenos Aires' budgetary performance will keep
    improving and reach an operating surplus by 2019, while
    deficit after capex is expected to remain below 5% of total
    revenues in the same period. S&P said, "In our base case, debt
    is projected to remain moderate at levels consistently below
    55% of operating revenues, while interest payments will
    slightly surpass 5% of operating revenues. If the Conurbano
    funds finally reach the province's budget, it could have a
    positive impact on the fiscal sustainability in the medium to
    long term. Additionally, we believe that the province of
    Buenos Aires has a particular weight compared to other
    provinces if we look at the political incentives that the
    federal government has had historically in order to continue
    to support the province." Under the leadership of Governor
    Maria Eugenia Vidal, the province has also shown commitment to
    medium and long term financial planning, which we consider
    positive from the credit point of view.

-- The province of La Rioja's budgetary performance is likely to
    maintain operating surpluses above 5% of revenues, while S&P's
    base case is that debt will represent 45% of the province's
    operating revenue in 2017-2019, while interest payments are
    expected to reach 3.5% of operating revenues in 2018. In
    February 2017, the Province issued its first international b
    bond for $200 million, of which $170 million is being used to
    finance the development of a wind farm. While the province has
    structural economic weaknesses, the fiscal prudence observed
    over the past few years is expected to remain in place over
    the next two years, while it continues to fund capital
    projects.

-- The province of Mendoza has continued to post volatile fiscal
    results during the last year, although improved budgeting and
    expenditure management allowed it to skirt a deepening of
    operating and after-capital-expenditure deficits. In our base
    case, we assume operating balances will gradually improve to a
    surplus of 1.7% of operating revenues by 2019 from a deficit
    of 1.3% of operating revenues this year, while debt and
    interest will remain at 56% and 4% of operating revenues,
    respectively. We believe that the financial management's
    commitment has been important in improving fiscal trends over
    the past year.

Although S&P thinks that fiscal improvement could be possible in
the provinces of Salta, Jujuy, Entre Rios and Neuquen in the next
few years as a result of a stronger economic and fiscal
environment in Argentina, at this point, these LRGs are in a
weaker fiscal position than their national peers and/or there are
uncertainties around plans to achieve fiscal sustainability in the
next few years. As a result, it will be key to assess their
political and managerial strengths over the medium term, so that
they can angle toward a stronger fiscal path that could impact
positively credit quality. For 2018 and 2019, S&P expects:

-- The Province of Salta to gradually improve fiscal results as
    it recovers from an operating deficit higher than 5% of
    operating revenues in 2016. However, Salta still faces some
    challenges balancing its budget, and we expect an operating
    deficit in 2017. Although it seems possible for Salta to
    improve its budgetary performance over the next two years as
    the economy recovers in Argentina and the province continues
    to receive federal transfers and access to the market,
    expenditure control will require committed management with
    more formal medium and long term financial planning. S&P said,
    "We consider that the province has the potential to post a
    surplus of 5% of operating revenue by 2019, compared with the
    6.4% deficit in 2016, if it effectively limits expenditure
    growth. We believe that the province's debt will remain at a
    moderate level, averaging 39% of operating revenue in 2017-
    2019, and we assume that Salta will obtain borrowings
    according to its needs in the next two years."

-- The province of Neuquen will improve its fiscal performance
    gradually. However, budgetary constraints are likely to linger
    during 2017, reflected in an estimated operating deficit of
    around 5% of operating revenues, and a deficit after capex
    slightly above 10% of total revenues. Although the province
    has been able to access external liquidity to finance budget
    gaps, it has experienced difficulties reining in spending and
    balancing its budget. S&P said, "At the same time, we believe
    a strong increase in private investments will benefit the
    province--mostly related to the hydrocarbon sector, which
    would trickle down to other activities, giving Neuquen above
    average growth prospects compared to peers. We will monitor
    the management's capacity to implement medium and longer term
    financial planning and visualize revenue and expenditure
    balances in 2018 and 2019. Although almost 70% of its total
    debt is exposed to foreign currency risk, its dollar-
    denominated revenues from the collection of royalties
    partially offsets potential harm. We believe debt levels will
    remain below 50% of Neuquen's annual operating revenues over
    the next two years, and interest payments are projected to
    reach 3.2% of 2018 operating revenues."

-- The province of Entre Rios' fiscal deficit widened sharply in
    2016 while the province's debt also rose to a moderate 36.7%
    of expected 2017 operating revenues. Although the province
    ranked well, compared to its peers, in fiscal transparency, it
    still has to strengthen its medium and long term financial
    planning, articulating a toward fiscal sustainability. Entre
    Rios could potentially show operating surpluses in 2018, only
    if it is capable and willing to effectively contain operating
    expenditure growth, while strengthening its overall revenues.
    As of June 2017, budgetary performance improved compared to
    the same period last year, reflected in a negative operating
    balance of 0.74% of operating revenues compared to 4.67% last
    year. Although S&P observed an improvement, the province is
    likely to end fiscal 2017 with operating deficit.

-- The province of Jujuy's structural fiscal weaknesses have
    resulted in ongoing operating deficits for the past five
    years, and high deficits after capex consistently above 12% of
    total revenues. Also, debt levels remain higher than most of
    its national peers, estimated to reach 67% of 2018 operating
    revenues. With one of the lowest GDP per capita in Argentina,
    Jujuy will struggle to fund basic infrastructure in the coming
    years to boost growth. S&P expects capex to increase, given
    that the province is building a solar energy farm, which will
    be funded through the last issuance of a $210 million
    international bond, which is due on Sept. 20, 2022. Also, a
    financial management commitment to work on a fiscal
    sustainability plan for the next few years will be essential
    to improve Jujuy's creditworthiness.

S&P said, "We believe that a stronger institutional framework, as
well as more transparent dialogue to resolve key public policy
issues, will continue to impact local and regional government
ratings in the next few years. We also think that the individual
credit profile of each province will become increasingly relevant
to explain the evolution of LRG ratings in 2018-2019."

RATINGS LIST
  Upgraded

  Buenos Aires (City of)
                                To               From
  Issuer Credit Rating          B+/Stable/--     B/Stable/--

  Buenos Aires (Province of)
  Issuer Credit Rating          B+/Stable/--     B/Stable/--

  Cordoba (Province of)
  Issuer Credit Rating          B+/Stable/--     B/Stable/--

  La Rioja (Province of)
  Issuer Credit Rating          B+/Stable/--     B/Stable/--

  Mendoza (Province of)
  Issuer Credit Rating          B+/Stable/--     B/Stable/--

  Ratings affirmed

  Entre Rios (Province of)
  Issuer Credit Rating          B/Stable/--

  NeuquÇn (Province of)
  Issuer Credit Rating          B/Stable/--

  Salta (Province of)
  Issuer Credit Rating          B/Stable/B


* S&P Raises Currency Ratings on Six Argentine Companies to 'B+'
----------------------------------------------------------------
S&P Global Ratings, on Oct. 30, 2017, raised its local and foreign
currency ratings on the following companies and utilities to 'B+'
from 'B':

-- AES Argentina Generacion S.A (AES Argentina);
-- CAPEX S.A.;
-- Pampa Energia S.A. (Pampa);
-- Transportadora de Gas del Sur S.A. (TGS); and
-- YPF S.A.

S&P also raised its local and foreign currency ratings on
Aeropuertos Argentina 2000 S.A. (AA2000) to 'BB-' from 'B+'. The
outlooks on all these companies remain stable.

RATIONALE

S&P said, "The upgrades of these entities follow that on the
sovereign, which we raised to 'B+/B' from 'B/B' earlier today
mainly due to improved macroeconomic prospects and our perception
of greater political support for future reforms, that could
contribute to sustained growth and lower economic imbalances
(please see "Argentina Long-Term Rating Raised To 'B+' On
Improvement In Economic Policy; Outlook Stable," published Oct.
30, 2017).

"Ratings on these entities, except for AA2000, remain capped at
the sovereign's level because we believe that they are vulnerable
to a sovereign default scenario. The ratings on AA2000 are one
notch above those on Argentina, reflecting the company's very
robust cash flow generation and some degree of geographic
insulation that we believe would allow it to withstand a sovereign
stress, at least for some time."

OUTLOOK

The stable outlook on these companies mirrors the outlook on
Argentina.

Upside scenario

Given that the underlying credit qualities -- the stand-alone
credit profiles -- of AES Argentina, AA2000, TGS, and YPF remain
above their current ratings, any potential future upgrade of the
sovereign will trigger automatic upgrades of the four companies.
An additional upgrade of CAPEX and Pampa will also require
stronger financial results and business conditions. S&P will be
updating the reports on these entities soon.

Downside scenario

S&P said, "Although unlikely at this point, we could lower the
ratings on all these entities following a similar action on the
sovereign. Specific conditions that could motivate rating
downgrades on these entities, other than for sovereign related
issues, will be identified in future individual reports."

RATINGS LIST

  Ratings Raised            To             From

  YPF S.A.
   Local Currency Rating    B+/Stable/--   B/Stable/--
   Foreign Currency Rating  B+/Stable/--   B/Stable/--
   Sr. Unsecured            B+             B

  Pampa Energia S.A.
   Local Currency Rating    B+/Stable/--   B/Stable/--
   Foreign Currency Rating  B+/Stable/--   B/Stable/--
   Sr. Unsecured            B+             B

  Aeropuertos Argentina 2000
   Local Currency Rating    BB-/Stable/--  B+/Stable/--
   Foreign Currency Rating  BB-/Stable/--  B+/Stable/--
   Sr. Secured              BB-            B+

  AES Generacion Argentina S.A.
   Local Currency Rating    B+/Stable/--   B/Stable/--
   Foreign Currency Rating  B+/Stable/--   B/Stable/--
   Sr. Unsecured            B+             B

  CAPEX S.A.
   Local Currency Rating    B+/Stable/--   B/Stable/--
   Foreign Currency Rating  B+/Stable/--   B/Stable/--
   Sr. Unsecured            B+             B

  Transportadora de Gas del Sur S.A
   Local Currency Rating    B+/Stable/--   B/Stable/--
   Foreign Currency Rating  B+/Stable/--   B/Stable/--
   Sr. Unsecured            B+             B


* S&P Raises ICR on Three Argentinean Banks to 'B+'
---------------------------------------------------
S&P Global Ratings raised its issuer credit ratings on Banco
Patagonia S.A., Banco Galicia y Buenos Aires S.A., and Banco
Hipotecario S.A., 'B+' from 'B'. The outlook on these ratings
remains stable. At the same time, S&P raised its senior unsecured
debt ratings on Banco Hipotecario to 'B+' from 'B'. Also, S&P has
raised its subordinated debt rating on Banco Galicia to 'CCC+'
from 'CCC'.

The upgrade of Banco Patagonia, Banco Galicia, and Banco
Hipotecario mirrors the rating action on the sovereign and
incorporates benefits from the stronger BICRA score on Argentina.
The upgrade of the sovereign reflects greater confidence about the
government's political capacity to continue pursuing its economic
agenda, resulting in a more predictable economic policy and
governance. Therefore, S&P expects moderate and consistent
economic growth for the next three years as well as lower
volatility in economic performance. The October 22 mid-term
legislative elections boosted the current administration's
standing in Congress. While the governing coalition "Cambiemos"
fell short of majority in both chambers, its electoral gains
consolidated its political standing and reduced the risk of a
shift away from current economic policies in the next couple of
years and after the 2019 national election. S&P expects the
government to work with segments of the political opposition to
pass laws in Congress, gaining consensus and agreements with the
governors of provinces.

S&P said, "We're revising our BICRA on Argentina to group '8' from
group '9', which raises anchor for banks operating in the country
to 'bb-' from 'b+'. Now Paraguay, Bolivia, Honduras, Russia, and
Sri Lanka are Argentina's BICRA peers. Our bank criteria uses our
BICRA economic risk and industry risk scores to determine a bank's
anchor, the starting point in assigning an issuer credit rating.
The BICRA revision reflects the improvement in economic risk to
'8' from '9' and industry risk to '7' from '8'."

The revision of the BICRA's economic risk score reflects the
improvements in business and economic conditions that would allow
economic agents to better face adverse cycles. This in turn would
further bolster business conditions and resilience for banks
operating in the country. S&P expects economic performance to
strengthen due to higher investments and better predictability in
the government's economic policies, which are likely to result in
moderate but stable economic growth in the next three years. Also,
the mid-term election results enable the administration to
continue implementing its economic policies to address economic
imbalances. Growth returned in 2017 with an expected real GDP
increase of about 2.8% from a 2.3% contraction in 2016, mainly
based on higher public works related to infrastructure, and
renewed investment mainly in agriculture, energy,
telecommunications, and automotive sectors. At the same time,
consumption has slowly accelerated in 2017 as purchasing power
recovered. S&P expects economic growth to accelerate in 2018
towards 3.0%, assuming gradually improving investor sentiment and
consumer confidence. A strengthening economic recovery in Brazil
could push Argentina's growth higher in 2018, while a slowing
momentum in global economy is the main downside risk.

S&P said, "Nevertheless, we believe that economic risks for banks
operating in Argentina remain considerable, given that high --
although declining -- inflation continues to dent GDP per capita
(estimated at $13,849 for 2017) and the economy's volatility and
vulnerability to political cycles. We estimate that inflation will
drop to 22% in 2017 from about 43% in 2016. On the other hand, the
government's scrapping of foreign-currency restrictions and the
tax amnesty have increased lending and deposits in foreign
currency. Over the short term, we don't expect the higher exposure
to foreign currency to raise credit risk for banks, given that
such lending is primarily for foreign-currency revenue generators.
Also, we currently don't expect the increase in indexed currency
mortgages to significantly raise credit risks for banks and create
economic imbalances, but the matching in funding and rates is a
factor to monitor in the intermediate term.

"We revised the economic risk trend to positive from stable to
reflect the potentially greater resilience of banks operating in
the country in the intermediate term if the falling inflation
diminishes distortions and results in a GDP per capita (measured
in dollars) that better reflects the country's economic structure.

"At the same time, the revision of our BICRA industry risk
reflects enhancements in institutional framework stemming from
Argentina's stronger regulatory framework. The latter is the
result of the implementation of Basel III principles for capital
requirement calculations, the implementation of liquidity ratios,
and the upcoming rollout of aspects of international accounting
rules, factors that allow Argentina's financial system to better
align with international standards."

The industry risk trend is now stable. Although the current
administration has removed many of the restrictions that the
former government imposed, the banking industry remains exposed to
market distortions, including still high inflation and a lack of
diversified and long-term funding. S&P said, "We also believe that
the historically weak retail depositor confidence increases
industry risk. Furthermore, in our opinion, the country has a
small capital market and, despite some improvements, Argentine
entities still have limited access to foreign capital markets,
resulting in a narrow range of funding sources."



===========
B R A Z I L
===========


BANCO BONSUCESSO: Moody's Affirms B2 Global Deposit Ratings
-----------------------------------------------------------
Moody's Investors Service affirmed the long and short-term global
local and foreign currency deposit ratings of B2 and Not Prime, as
well as the long-term foreign currency subordinated debt rating of
B3, assigned to Banco Bonsucesso S.A. (Bonsucesso). At the same
time, Moody's affirmed Bonsucesso's short term Brazilian national
scale rating of BR-4, its baseline credit assessment (BCA) of b2,
as well as its adjusted BCA of b2, and its long and short -term
counterparty risk assessments of B1(cr) and Not prime(cr). The
Brazilian national scale long-term deposit rating was downgraded
to Ba2.br from Ba1.br. The outlook on the long-term local and
foreign currency deposit ratings, as well as the issuer outlook,
was changed to negative.

The following ratings and assessments of Banco Bonsucesso S.A.
were affirmed:

- Long and short-term global local currency deposit rating of B2,
   negative outlook and Not-Prime

- Long and short-term foreign currency deposit rating of B2,
   negative outlook and Not-Prime

- Short term Brazilian national scale deposit rating of BR-4

- Subordinate debt rating of B3

- Baseline credit assessment of b2

- Adjusted baseline credit assessment of b2

- Long and short-term counterparty risk assessment of B1(cr) and
   Not Prime(cr)

The following rating of Banco Bonsucesso S.A. was downgraded:

- Long-term Brazilian national scale deposit rating to Ba2.br
   from Ba1.br

The issuer outlook of Banco Bonsucesso S.A. was changed to
negative from stable.

RATINGS RATIONALE

In affirming Bonsucesso's global scale ratings, Moody's took into
consideration the bank's ongoing franchise repositioning, with a
focus on judiciary loans (precatorios) and working capital loans
to small and mid-sized enterprises (SME), as well as its
successful inroads into niche fee-based businesses. Bonsucesso's
rapid growth in these asset classes and sizable borrower
concentration, however, indicate a larger probability of negative
pressure on the bank's financial fundamentals and on asset quality
and capitalization, in particular. These risks are also the key
driver of the downgrade of Bonsucesso's national scale rating to
Ba2.br.

Bonsucesso has been in the process of overhauling its business
strategy after it concluded the transfer of its payroll lending
operation to Banco Ole Bonsucesso Consignado S.A. (BBC), a joint
venture (JV) created with Banco Santander (Brasil) S.A. (Ba1/Ba3,
ba2 negative) in 2015. As part of its repositioning , the bank has
actively expanded operations with judiciary bonds (precatorio),
where it advances financing to plaintiffs who have won claims
against federal, state and municipal governments, and then seeks
payment itself from these entities. The repayment probability, and
therefore, the recovery value of these claims tends to be high,
but settlement delays are possible. For Bonsucesso, precatorios
account for almost 60% of its total loan book, and almost 250% of
its core capital. Bonsucesso is now required to provision and
allocate capital against these exposures following guidance from
the Central Bank, and the rating agency particularly notes the
bank's rapid growth of 91.2% of precatorio holdings since December
2015.

At the same time, Bonsucesso has nearly doubled its SME loans in
the twelve months to June 2017, which combined with the high
levels of concentration in its precatorios portfolio add a
significant degree of asset risk. The bank's concentration levels
are high on both a regional basis, given its long operating
history in Minas Gerais, State of (B1, negative), as well as by
its ten largest borrowers that represent over 75% of total loans.
While the bank's problem loan ratio, which accounts for only
delayed installments of delinquent loans, was a low 0.4% as of
June 2017, the rapid pace of growth in a still weak economy raises
the risk of delinquencies. Moody's also notes that net charge offs
were 1.9% and renegotiations accounted for a further 1.8% in June
2017.

The bank is also focused on increasing fee-based revenues,
particularly foreign-exchange products and services, as well as
online debit and credit card payments and receivables discounting.
Bonsucesso faces a number of well-established competitors in these
market segments, but the nimble execution of this digital strategy
may increase the still-modest contribution of this business.

Bonsucesso's low reliance on market funding and its high liquid
assets are key factors that support its BCA of b2. As management
expands the bank' lending business, it is likely that liquidity
and capital will decline. Bonsucesso's reported regulatory Tier 1
capital ratio of 9.0% as of June 2017, was down by 300 basis
points versus a year earlier, a result of the rapid loan growth.
Moody's expects further capital consumption at Bonsucesso to
result from the 100% deduction of its 40% stake in Banco Ole
Bonsucesso Consignado S.A. from core capital, as part of the full
phase-in of capital regulations. A thinner capital cushion exposes
Bonsucesso to volatility in case asset quality or profitability
weakens. The successful execution of the bank's strategy is
therefore subject to significant transition risks and is a key
factor underlying Moody's negative outlook on the bank's ratings.

WHAT COULD MAKE THE RATING GO DOWN

The ratings could return to a stable outlook if the pace of growth
slows, with positive implication for its capital ratio as well as
to concentration risk. The ratings could be negatively affected if
asset quality deteriorates leading to higher provisioning
expenses, which could dent capitalization. Ratings could also face
downward pressure if Bonsucesso is unable to successfully execute
its repositioning strategy, and consequently not develop
meaningful new sources of recurring earnings.



==========================
C A Y M A N  I S L A N D S
==========================


BANCO MERCANTIL: Moody's Affirms Ba2(hyb) Jr. Sub. Debt Ratings
---------------------------------------------------------------
Moody's Investors Service affirmed the Ba2 (hyb) foreign currency
junior subordinated debt ratings of Banco Mercantil del Norte,
S.A.'s (Banorte) perpetual callable subordinated non-preferred
non-cumulative Additional Tier 1 (AT1) capital notes, with an
optional redemption on the first call date. The Contingent
Convertible Capital Notes were issued through Banorte's Cayman
Islands branch, Banco Mercantil del Norte, S.A. (Cayman I)
(Banorte Cayman). The capital notes totaled USD900 million, split
into two tranches of different maturities and coupons.

The rating agency also affirmed the Ba1 (hyb) junior subordinated
debt rating of the USD500 million cumulative, non-convertible,
dated, loss-absorbing Tier 2 subordinated capital notes also
issued by Banorte through its Cayman Islands branch.

Moody's also affirmed Banorte Cayman's counterparty risk
assessments of A2(cr) and Prime-1(cr).

LIST OF AFFECTED RATINGS:

The following ratings and assessments were affirmed:

Banco Mercantil del Norte, S.A. (Cayman I):

  Long-term foreign currency junior subordinated debt rating of
  Ba1 (hyb)

  Long-term foreign currency junior subordinated debt rating of
  Ba2 (hyb)

  Long-term counterparty risk assessments of A2(cr)

  Short-term counterparty risk assessments of Prime-1(cr)

RATINGS RATIONALE

The affirmation of Banorte Cayman's ratings is in line with the
affirmation of Banorte's baa2 adjusted baseline credit assessment
(BCA), which is the anchor for the notching of the aforementioned
subordinated debt ratings, on October 30, 2017. For more
information on that rating action, please refer to Moody's press
release "Moody's affirms Banorte; reviews Interacciones's ratings
for upgrade following merger agreement."

The assigned Ba2 (hyb) rating assigned to Banorte Cayman's AT1
instrument is positioned three notches below Banorte's baa2
adjusted BCA, in line with Moody's standard notching guidance for
contractual non-viability securities, and reflects both the higher
probability of default of these notes as well as the higher loss
given default resulting from their subordination to the bank's
senior debt and deposits.

The assigned Ba1 (hyb) ratings assigned to Banorte Cayman's Tier 2
subordinated capital notes are positioned two notches below
Banorte's baa2 adjusted BCA, in line with Moody's standard
notching guidance for cumulative non-convertible subordinated
securities with contractual loss absorption provisions.

WHAT COULD CHANGE THE RATINGS UP OR DOWN

The ratings would face upward or downward pressure in line with
similar credit trends in Banorte's adjusted BCA.

Upward pressure on Banorte's standalone assessment could result
from the bank's ability to maintain its asset quality and
profitability metrics while slowing loan growth to levels more
comparable to those of Mexico's GDP growth.

Banorte's standalone BCA would be lowered if the bank's core
capitalization significantly declines or if its acquisition of
Interacciones and loan growth lead to a substantial deterioration
of asset quality and profitability.

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


FIDEICOMISO FINANCIERO: Moody's Rates ARS10.532MM Certs 'Ca.ar'
---------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has rated
Fideicomiso Financiero Pvcred Serie XXXV. This transaction will be
issued by TMF Trust Company (Argentina) S.A., acting solely in its
capacity as issuer and trustee.

This credit rating is subject to the fulfillment of contingencies
that are highly likely to be completed, such as finalization of
documents and issuance of the securities. This credit rating is
based on certain information that may change prior to the
fulfillment of such contingencies, including market conditions,
financial projections, transaction structure, terms and conditions
of the issuance, characteristics of the underlying assets or
receivables, allocation of cash flows and of losses, performance
triggers, transaction counterparties and other information
included in the transaction documentation. Any pertinent change in
such information or additional information could result in a
change of this credit rating.

- ARS146,498,000 in Class A Floating Rate Debt Securities (VRDA
   TV) of "Fideicomiso Financiero Pvcred Serie XXXV", rated Aaa.ar
   (sf) (Argentine National Scale) and Ba3 (sf) (Global Scale)

- ARS34,470,000 in Class B Floating Rate Debt Securities (VRDB
   TV) of "Fideicomiso Financiero Pvcred Serie XXXV", rated
   Caa2.ar (sf) (Argentine National Scale) and Caa3 (sf) (Global
   Scale)

- ARS10,532,000 in Certificates (CP) of "Fideicomiso Financiero
   Pvcred Serie XXXV", rated Ca.ar (sf) (Argentine National Scale)
   and Ca (sf) (Global Scale).

RATINGS RATIONALE

The rated securities are payable from the cash flow coming from
the assets of the trust, which is an amortizing pool of
approximately 7,430 eligible personal loans denominated in
Argentine pesos, bearing fixed interest rate, originated by
Pvcred, a financial company owned by Comafi's Group in Argentina.
Only the installments due after December 31, 2017 will be assigned
to the trust.

The VRDA TV will bear a floating interest rate (BADLAR plus
300bps) from the issue date with first coupon payment date in
February 2018. The VRDA TV's interest rate will never be higher
than 30% or lower than 20%.

The VRDB TV will bear a floating interest rate (BADLAR plus
600bps) from the issue date. The VRDB TV's interest rate will
never be higher than 33% or lower than 23%.

Overall credit enhancement is comprised of subordination, various
reserve funds and excess spread.

The transaction has initial subordination level of 22.0% and 3.6%
for the VRDA TV and VRDB TV respectively, calculated over the
pool's principal balance as of December 31, 2017. The
subordination level will increase overtime due to the turbo
sequential payment structure. The transaction will have a grace
period for principal and interest payment until February 2018.

The transaction also benefits from an estimated 46.0% annual
excess spread, before considering losses, taxes or prepayments and
calculated at the caps of 30% and 33% for the VRDA TV and VRDB TV
respectively.

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

Factors that may lead to a downgrade of the ratings include an
increase in delinquency levels beyond the level Moody's assumed
when rating this transaction. Although Moody's analyzed the
historical performance data of previous transactions and similar
receivables originated by Pvcred, the actual performance of the
securitized pool may be affected, among others, by the economic
activity, high inflation rates compared with nominal salaries
increases and the unemployment rate in Argentina.

Factors that may lead to an upgrade of the ratings include the
building of credit enhancement over time due to the turbo
sequential payment structure, when compared with the level of
projected losses in the securitized pool.

Loss and Cash Flow Analysis:

Moody's considered the credit enhancement provided in this
transaction through the initial subordination levels for each
rated class, as well as the historical performance of Pvcred
portfolio. In addition, Moody's considered factors common to
consumer loans securitizations such as delinquencies, prepayments
and losses; as well as specific factors related to the Argentine
market, such as the probability of an increase in losses if there
are changes in the macroeconomic scenario in Argentina.

These factors were incorporated in a cash flow model that takes
into account all the relevant features of the transaction's assets
and liabilities. Monte Carlo simulations were run, which
determines the expected loss for the rated securities.

Moody's analyzed the historical performance data of previous
transactions and similar receivables originated by Pvcred, ranging
from April 2015 to September 2017. Moody's has observed a weaker
performance of Refis loans compared to Normal Pvcred Loans
(Existing plus OM loans). In addition, Moody's has observed a
weaker performance of Open Market Loans compared to Existing
Loans.

Moody's notes that there is uncertainty around key macroeconomic
variables in Argentina, including inflation rates, salary
increases compared to inflation, and economic activity, which have
an impact on future performance of this transaction.

In assigning the rating to this deal, Moody's assumed a lognormal
distribution of losses for each one of the different securitized
sub-pools: for the loans of Existing Clients, a mean of 15%; for
loans of Open Market, a mean of 35% and for the "Refinanciados"
loans, a mean of 45% with a coefficient of variation of 60% for
each of the three sub-pools. Also, Moody's assumed a lognormal
distribution for prepayments with a mean of 50% and a coefficient
of variation of 70%.

Servicer default was modeled by simulating the default of Banco
Comafi S.A. as the servicer consistent with its current rating of
B3/Baa1.ar. In the scenarios where the servicer defaults, Moody's
assumed that the defaults on the pool would increase by 20
percentage points.

The model results showed 1.2% expected loss for the VRDA TV, 34.7%
for the VRDB TV and 61.2% for the CP.

Moody's also evaluated the back-up servicing arrangements in the
transaction. If Pvcred is removed as collection agent, Banco
Comafi will be appointed as the back-up collection agent.

Stress Scenarios:

Moody's ran several stress scenarios, including increases in the
default rate assumptions. If default rates were increased by 4%
from the base case scenario, the ratings of the VRDA TV and VRDB
TV would likely be downgraded to B1 (sf) and Ca (sf) respectively,
while that of the Certificates would remain unchanged.

The principal methodology used in these ratings was "Moody's
Approach to Rating Consumer Loan-Backed ABS" published in
September 2015.



=======
C U B A
=======


CUBA: Offers Investment Opportunities Despite US Opposition
-----------------------------------------------------------
EFE News reports that Cuba defended at the opening of the 35th
Havana International Fair (FIHAV 2017) its strengths as a focus
for foreign investment against US attempts to isolate the island
by means of a financial embargo and its freezing of bilateral
relations in recent months.

Cuban Foreign Trade and Investment (Mincex) Minister Rodrigo
Malmierca noted in a speech that this occasion, the largest annual
trade fair and investment exchange on the island, "continues to be
consolidated" and has become a "useful negotiating space for trade
and investment deals," according to EFE News.



===================================
D O M I N I C A N   R E P U B L I C
===================================


DOMINICAN REPUBLIC: September Arrivals Fall 13.3% Amid Hurricanes
-----------------------------------------------------------------
Dominican Today reports that Dominican Republic's Central Bank
said September tourist arrivals fell 13.3%, as a result of
hurricanes Irma and Maria, with canceled flights from major
tourist source countries.

It said 311,362 visitors arrived by air in September, some 47,701
fewer than a month earlier, according to Dominican Today.

Nonetheless, the January-September cumulative result has been
positive: 4,711,486 non-resident passengers arrived by air, for a
growth of 4.1% in one year, the report notes.

"Foreign tourists, who represent 87.5% of the total number of non-
resident travelers visiting the country, grew 4.9% during the
first nine months of the year, while the remaining proportion of
non-resident Dominicans posed a year-on-year variation of -1.1%, "
the Central Bank said on its website, the report relays.

The fall in arrivals of non-resident Dominicans has been a trend
this year, which central banker Hector Valdez Albizu has
attributed to the impact from US president Donald Trump's
immigration measures, which affect the many Dominicans who live in
that country, the report adds.

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

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

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



=============
J A M A I C A
=============


JAMAICA: IMF Approves US$1.68 Billion Access After SBA Review
-------------------------------------------------------------
The Executive Board of the International Monetary Fund (IMF), on
October 23, 2017, completed the second review of Jamaica's
performance under the economic program supported by the Stand-By
Arrangement (SBA). The 36-month SBA with a total access of
SDR1,195.3 million (about US$ 1.68 billion), equivalent of 312
percent of Jamaica's quota in the IMF, was approved by the IMF's
Executive Board on November 11, 2016. The Jamaican authorities
continue to view the SBA as precautionary, and to use it as an
insurance policy against unforeseen external economic shocks that
could lead to a balance of payments need.

Following the Executive Board's discussion today, Mr. Tao Zhang
Deputy Managing Director and Acting Chair issued the following
statement:

"The authorities' commitment to their Fund-supported program
remains strong more than four years after embarking on difficult
economic reforms. Program performance is on track and
macroeconomic stability is entrenched, with stronger fiscal and
external positions, subdued inflation, and employment at historic
highs. Nevertheless, vulnerability to weather-related shocks
continues to pose important challenges to Jamaica's growth
performance. Against this backdrop, supply-side reforms, including
enhancing resilience to weather swings, must be accelerated to
deliver better growth and job outcomes, reduce poverty, and
improve living standards, while sustaining macroeconomic
stability.

"Concluding the ongoing wage negotiations is necessary for budget
certainty. More generally, fiscal sustainability requires a
continued reduction in the public wage bill, particularly as the
government rethinks its role, responsibilities, and size of its
workforce. Overhauling the pay structure and reviewing the complex
system of allowances are vital foundations to a modern public
sector that can attract and retain talent. In addition, a smaller
public sector remains essential to create space for much-needed
spending on health, education, social safety nets, public safety,
and growth-enhancing capital projects.

"The authorities recognize that reforms to the Bank of Jamaica
Act, further enhancing the monetary policy toolkit, improving
communications, and strengthening the central bank's balance sheet
are essential for moving toward inflation targeting. To this end,
the authorities are committed to maintaining exchange rate
flexibility and limiting foreign exchange interventions to
smoothing excessive volatility.

"Implementation of the resolution framework for financial
institutions is critical for strengthening the financial sector's
resilience. Any changes to investment and foreign exchange limits
of non-bank institutions should first carefully analyze growth and
stability tradeoffs and ensure that adequate supervisory capacity
is in place.

"Structural reforms are critical to support a dynamic private
sector that creates jobs. In this regard, efforts should be
accelerated to divest underutilized public assets, upgrade
procurement procedures, ease the development approval process, and
foster financial inclusion."

As reported in the Troubled Company Reporter-Latin America,
S&P Global Ratings affirmed on Sept. 25, 2017, its 'B' long- and
short-term foreign and local currency sovereign credit ratings on
Jamaica. The outlook on the long-term rating remains stable. At
the same time, S&P Global Ratings affirmed its 'B+' transfer and
convertibility assessment on the country.



===========
M E X I C O
===========


MEXICO: GDP Contracted in Third Quarter as Disasters Took Toll
--------------------------------------------------------------
Anthony Harrup at The Wall Street Journal reports that Mexico's
economic output declined in the third quarter, its first
contraction in 17 quarters as a series of natural disasters had a
negative impact on services and brought about further declines in
oil production.

Gross domestic product, a broad measure of output in goods and
services, was down 0.2% seasonally adjusted from the second
quarter, and rose 1.6% unadjusted from the year-earlier period,
the National Statistics Institute said, according to The Wall
Street Journal.

The decline from the second quarter -- which translates into an
annualized drop of 0.8% -- was led by a 0.5% contraction in
industrial output, the report notes.  Services slipped 0.1% and
agricultural production rose 0.5%. The preliminary readings could
change with the institute's next GDP report on Nov. 24, the report
relays.

Mexico suffered two major earthquakes in September that left 471
people dead and damaged more than 180,000 homes, 16,000 schools
and 1,800 churches and other cultural buildings in Mexico City and
nine other states, the report notes.  Several hundred schools and
churches, and more than 50,000 homes were destroyed or so badly
damaged that they have to be demolished, the report relays.

A number of economists said they expect the short-term impact of
the natural disasters to be offset in subsequent quarters by
reconstruction efforts, the report discloses.

While manufacturing was largely unaffected by the earthquakes,
output at state oil company Petroleos Mexicanos took a hit, the
report says.

Pemex cut oil production in September to about 1.73 million
barrels a day after a quake in southern Mexico led to the
temporary closure of its biggest refinery, and refinery outages on
the U.S. Gulf Coast following hurricane Harvey caused crude
shipments to be postponed, leaving Pemex's storage at full
capacity, the report discloses.  Crude output was back at 1.94
million barrels a day in early October, and company officials said
they expect Pemex to meet its full-year target of 1.944 million
barrels a day, the report relays.

"Economic activity continued to suffer from weakness in oil
production and temporary factors such as the unfortunate natural
disasters, while the performance of manufacturing and services,
and expectations of a pickup in construction leads us to foresee
an improvement in the fourth quarter," Banco Santander said in a
report ahead of the GDP release, the report notes.

The third-quarter marked a slowdown from the first half of the
year, when gross domestic product expanded by 2.3%. Concerns about
growth have also been increasing as talks with the U.S. and Canada
to rewrite the North American Free Trade Agreement become more
tense and disagreements emerge, the report relays.

Fitch Ratings said that while it doesn't foresee a collapse of the
24-year-old trade pact, the extension of negotiations into 2018
and comments from government officials underline the growing
risks.

If the U.S. withdrew from Nafta, Mexico's economy would face
significant uncertainty and near-term market volatility, the
ratings firm said in a report, the WSJ discloses.

"Growth would slow through the medium term, from an already modest
base, as the initial disruption would likely result in lower
investment and trade dislocations with potentially sustained
effects on consumer confidence," Fitch added.


                            ***********


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 conferences@bankrupt.com


                            ***********


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
856-381-8268.


                   * * * End of Transmission * * *