/raid1/www/Hosts/bankrupt/TCRLA_Public/171103.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

               Friday, November 3, 2017, Vol. 18, No. 219


                            Headlines



A R G E N T I N A

MEGAINVER RENTA: Moody's Assigns B-bf Global Scale Bond Rating


B O L I V I A

BANCO UNION: Moody's Gives B1 Global Foreign Curr. Deposit Rating


C U B A

CUBA: Madrid Expects Solution to Payment Problems on Spanish Firms


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Advances in World Bank's Doing Business
DOMINICAN REPUBLIC: Blackouts Cost Users US$1BB Yearly
DOMINICAN REPUBLIC: Big Business Refutes Big Tax Dodger Image


J A M A I C A

NATIONAL COMMERCIAL BANK: To Reimburse Dormant Fees


P U E R T O    R I C O

PUERTO RICO: Old San Juan Disappearing Economically


V E N E Z U E L A

VENEZUELA: Maduro Defends Withdrawal of Major Banknote


                            - - - - -



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A R G E N T I N A
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MEGAINVER RENTA: Moody's Assigns B-bf Global Scale Bond Rating
--------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has
assigned a B-bf global scale bond fund rating and a Aa-bf.ar
national scale bond fund rating to Megainver Renta Fija Latam (the
Fund), a new medium-to-long term bond fund managed by Megainver
SGFCI SA.

The ratings assigned are:

- Global scale bond fund rating: B-bf

- National scale bond fund rating: Aa-bf.ar

RATINGS RATIONALE

The B-bf global scale bond fund rating reflects the expected
maturity-adjusted weighted average credit quality of the Fund's
investment portfolio based on an investment strategy of investing
principally in Baa-B rated US dollar Latin American corporate
bonds rated as well as B3-rated Argentinean sovereign bonds. The
Aa-bf.ar national scale rating reflects a national scale mapping
that is consistent with the upper end of a B global rating. The
Fund's average duration is expected to be between 3 and 5 years.

The rating agency noted that the Fund is a fund managed by an
experienced investment manager. Moody's analysis was performed on
a model portfolio provided by the fund sponsor. The rating agency
expects the Fund to be managed in line with this model portfolio.
However, Moody's noted that if the Fund's actual portfolio
deviates materially from the model portfolio provided, the Fund's
ratings could change.

"Based on the Fund's model portfolio, the Fund's credit quality
profile will be comparable with other to those rated at similar
rating range", said Moody's Vice President Carlos de Nevares.

Megainver SGFCI SA is a medium sized asset manager in the
Argentinean Mutual Fund Industry. As of Sep 2017, Megainver had
approximately ARS 12.3 billion in Assets under Management (AUM) or
approximately $702 million occupying the 15th position with a 2.3
% of market share in AUM terms.



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B O L I V I A
=============


BANCO UNION: Moody's Gives B1 Global Foreign Curr. Deposit Rating
-----------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo (MLA) has
affirmed all Banco Union S.A. (Bolivia) (Union)'s ratings and
assessments. The outlook on all ratings is stable.

The following ratings and assessments assigned to Union were
affirmed:

  Global long-term/short-term local currency deposit rating, rated
  Ba3 stable/Not Prime

  Global long-term/short-term foreign currency deposit rating,
  rated B1 stable/Not Prime

  Bolivian national scale long-term/short-term local currency
  deposit rating, rated Aaa.bo stable/BO-1

  Bolivian national scale long-term/short-term foreign currency
  deposit rating, rated Aa3.bo stable/BO-1

  Long-term/short-term counterparty risk assessment, rated
  Ba3(cr)/Not Prime(cr)

  Baseline credit assessment (BCA), b1

  Adjusted baseline credit assessment, b1

RATINGS RATIONALE

The affirmations reflect that the potential impact of an alleged
fraud by bank employees on the bank's funding and liquidity, and
the governance shortcomings this reveals, are counterbalanced by a
recent improvement in the banks' capitalization and a reduction of
asset risk, and its strong liquidity. The affirmation also
considers the very high probability that the bank would receive
financial support from the Bolivian government in an event of
financial stress.

Following the recent revelation of a $5 million fraud allegedly
perpetrated against the bank by some of its employees, the bank's
General Manager and four other senior executives have been
removed, and the entire Board of Directors resigned. Further
management changes are expected. Although the direct monetary
impact of the fraud appears to be limited, these dismissals appear
to reflect the government's concern regarding shortcomings in
governance and risk management controls that permitted the fraud
to occur.

The fraud could potentially put pressure on the bank's funding,
but this impact is also likely to be limited given its role as the
financial agent for the Bolivian government, which provides it
access to a captive base of stable, low-cost deposits from the
government and its employees. Government-related deposits alone
account for a substantial 27% of the bank's total funding.

Moreover, these risks are offset by the bank's strong liquidity,
with liquid assets still equal to nearly 40% of tangible banking
assets as of June 2017 despite a decline from more than 60% a year
and a half earlier. During the same time, the bank's adjusted
capital ratio has risen to 12.3% from 11%, which has helped to
increase its loss absorption capacity and bolster its credit
profile.

This improvement was led by a significant slowdown of Union's loan
growth, to 16% in the past two and a half years from an average of
nearly 33% from 2008-2014, together with a very conservative
dividend policy; in recent years, 100% of the bank's earnings have
been reinvested.

The slowdown in loan growth has also contributed to a reduction in
and stabilization of asset risk. Since year-end 2014, the bank's
non-performing loans ratios has hovered around a low 1.50%, down
from as much as 18% in 2006 and even below the 1.65% system
average. In addition, the bank holds ample loan loss reserves,
which equaled 163% of problem loans as of June 2017.

Notwithstanding these credit strengths, Union faces challenges --
as does the rest of the Bolivian banking system -- from the
financial services law passed in August 2013, which imposes
lending rate caps and mandated lending to certain housing and
productive sectors. Moody's believes this law could lead to a
deterioration in both the bank's asset quality as well as its
profitability, which is already low by Bolivian standards -- its
net income equaled just 0.76% of tangible banking assets.

However, Moody's views the bank as government-backed considering
its state-ownership, its significant deposit market share, its
role as the financial agent for the government and government-
owned enterprises, and the social mission to expand access to
financial services. The government's backing of the bank is also
reflected in the bank's Aaa.bo Bolivian national scale rating,
which is the highest of three alternatives corresponding to its
Ba3 global scale rating, and the stable outlook, which is in line
with the stable outlook on Bolivia's sovereign rating.

Nevertheless, the global scale foreign currency deposit rating is
constrained by the B1 Bolivian foreign currency deposit ceiling.

WHAT COULD CHANGE THE RATING UP/DOWN

The bank's standalone credit profile, as reflected by its BCA,
could face downward pressure if its funding or liquidity
deteriorate significantly as a result of its corporate governance
challenges, or if the implications of shortcoming in corporate
governance and risk management prove more extensive than currently
anticipated. However, a change in the BCA would not in and of
itself affect the bank's deposit ratings, considering the
government support for this entity. Barring an indication of
reduced willingness on the part of the government to support the
bank, only a change in Bolivia's sovereign rating is likely to
affect the bank's deposit ratings at this time.

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



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C U B A
=======


CUBA: Madrid Expects Solution to Payment Problems on Spanish Firms
------------------------------------------------------------------
EFE News reports that Spanish Secretary of State for Trade Maria
Luisa Poncela said that she is confident that discussions between
Madrid and Havana will result in a quick solution to the problems
of non-payment to Spanish firms on the island, an outstanding debt
totaling some EUR40 million (about US$46.5 million).

Mr. Poncela, who attended the inauguration of the Spanish pavilion
at the International Fair in Havana (FIHAV 2017), told EFE that
one of the reasons for her visit to the Caribbean nation is "to
study the situation of the Cuban government's finances with regard
to the payments to Spanish companies."



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


DOMINICAN REPUBLIC: Advances in World Bank's Doing Business
-----------------------------------------------------------
Dominican Today reports that the Dominican Republic advanced from
position 103 to 99 in the World Bank's Doing Business, which
focuses on the relevant regulations in the lifecycle of companies,
especially the small and medium-size ones.

National Competitiveness Council (CNC) executive director Rafael
Paz, stressed that obtaining electricity was the indicator with
the most impact, according to Dominican Today.

The report said that the country improved 40 positions in the
speed of the electricity connection, as a result of the
government's investment in expanding the grid and "establishing a
power restoration squadron to respond to interruptions," Dominican
Today notes.

The sector's actions brought the 12.6 points to the best global
performance in that line, due to the key factor in fewer hours of
interruption, which advanced the country in the index, Dominican
Today relays.

Mr. Paz said the reduced time needed to register a company by
streamlining processes, as well as the declaration of insolvency,
were of positive impact, 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.


DOMINICAN REPUBLIC: Blackouts Cost Users US$1BB Yearly
------------------------------------------------------
Dominican Today reports that the Dominican Electrical Industry
Association (ADIE) said the cost of energy and alternative
lighting to deal with the hours of blackout cost individuals and
businesses US$500 million per year.

Adie cited the use of candles, "the most primary source used by
households during power outages," could cost up to RD$600 per
month, according to Dominican Today.  "While that same house with
basic appliances would pay around 400 pesos per month for a stable
electric service during the same time, according to the current
rate," Adie said, the report notes.

In a statement, Adie said the annual cost for households is
US$228.26 million and US$335.9 million for companies, the small
and medium-sized affected the most, the report relays.

"A small company with 1 to 10 employees with 5 hours of blackouts
pays 372,000 pesos per month to have a power plant," the Adie
said, adding that the losses in distribution and excess paid by
users to deal with the blackouts are as high as US$1.0 billion,
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.


DOMINICAN REPUBLIC: Big Business Refutes Big Tax Dodger Image
-------------------------------------------------------------
Dominican Today reports that National Business Council (Conep)
president Pedro Brache said the perception revealed by the Gallup-
HOY survey that employers are the biggest tax dodgers is
incorrect.

"My opinion is that it's incorrect.  The business sector pays
almost the majority of taxes in the Dominican Republic and is a
productive sector that contributes a huge percentage to GDP,
especially in taxes, so I think the valuation is incorrect," the
report quoted Mr. Brache as saying.

According to the Gallup-Hoy survey, in the ranking of those who
pay their taxes the most, employers figure in last place with 37%,
followed by members of the upper classes, with 42.3%, the report
notes.

In comparison, among those who best pay their taxes are the
members of the middle classes (77.6%) and the small businesses
(77.2%), Dominican Today 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.



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


NATIONAL COMMERCIAL BANK: To Reimburse Dormant Fees
----------------------------------------------------
RJR News reports that National Commercial Bank (NCB) is to
reimburse fees charged for dormant accounts.

A circular released by the bank states that the fees will be
reimbursed when an account is reactivated or closed, according to
RJR News.  It says, in cases where minimum balance fees are also
generated to an account as a result of the dormant charges, the
figure should be included in the amount being refunded, the report
notes.

NCB in March suspended charges applied to dormant accounts, the
report relays.  A charge of $450 plus General Consumption Tax was
previously applied to business and personal accounts classified as
dormant, the report discloses.

Accounts are classified as dormant if there is no customer
activity for two years for saving accounts and one year for
current accounts, the report relays.

In a related matter, Fitz Jackson, Member of Parliament for St
Catherine Southern, who has been leading the fight against bank
fees, has raised concern about the lack of assistance he has
received from the government in re-drafting his private member's
bill which proposes to amend the Banking Services Act, the report
says.

Mr. Jackson withdrew the Bill from the House of Representatives
earlier this year to make adjustments. He promised that it would
be reintroduced. However, speaking at a meeting of Parliament's
Public Administration and Appropriations Committee, Mr. Jackson
said he has been forced to seek help from a private lawyer as the
Attorney General's Department and the Chief Parliamentary Counsel
have been giving him "the run-around", the report adds.

As reported in the Troubled Company Reporter-Latin America on
March 1, 2017, Fitch Ratings has affirmed National Commercial Bank
Jamaica Limited's ratings as:

-- Long-term foreign and local currency IDRs at 'B';
     Outlook Stable;
-- Short-term foreign and local currency IDRs at 'B';
-- Viability Rating at 'b';
-- Support Rating at '4';
-- Support Rating Floor at 'B'.



======================
P U E R T O    R I C O
======================


PUERTO RICO: Old San Juan Disappearing Economically
---------------------------------------------------
EFE News reports that old San Juan, one of Puerto Rico's main
tourist centers, is disappearing economically -- with 10,000 local
jobs at risk -- because of the closure of local businesses due to
the lack of electricity and damage in the area after the passage
of Hurricane Maria more than 40 days ago.

When evening comes, this part of the capital, heretofore a
bustling district, is now dark -- with the exception of a few
nightspots where the lights are on due to the use of generators,
according to EFE News.

Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70
billion, a 68% debt-to-GDP ratio and negative economic growth in
nine of the last 10 years.

The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.

The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III
of 2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ("PROMESA").

The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017.  On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").

U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases.  The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that
may be referred to her by Judge Swain, including discovery
disputes, and management of other pretrial proceedings.

Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.

The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.

Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.

McKinsey & Co. is the Board's strategic consultant, Ernst & Young
is the Board's financial advisor, and Citigroup Global Markets
Inc. is the Board's municipal investment banker.

Prime Clerk LLC is the claims and noticing agent.  Prime Clerk
maintains a case web site at:

           https://cases.primeclerk.com/puertorico

Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.

O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders. The Law offices of
Andres W. Lopez, P.S.C., is co-attorney to the AAFAF.

The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.

                      Bondholders' Attorneys

Toro, Colon, Mullet, Rivera & Sifre, P.S.C. and Kramer Levin
Naftalis & Frankel LLP serve as counsel to the Mutual Fund Group,
comprised of mutual funds managed by Oppenheimer Funds, Inc.,
Franklin Advisers, Inc., and the First Puerto Rico Family of
Funds, which collectively hold over $3.5 billion in COFINA Bonds
and over $2.9 billion in other bonds issued by Puerto Rico and
other instrumentalities, including over $1.8 billion of Puerto
Rico general obligation bonds ("GO Bonds").

White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.

Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP,
Autonomy Capital (Jersey) LP, FCO Advisors LP, Franklin Mutual
Advisers LLC, Monarch Alternative Capital LP, Senator Investment
Group LP, and Stone Lion Capital Partners L.P.

Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.

Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ
Management II LP (the QTCB Noteholder Group).

                           Committees

The U.S. Trustee formed a nine-member Official Committee of
Retirees and a seven-member Official Committee of Unsecured
Creditors of the Commonwealth.  The Retiree Committee tapped
Jenner & Block LLP and Bennazar, Garcia & Milian, C.S.P., as its
attorneys.  The Creditors Committee tapped Paul Hastings LLP and
O'Neill & Gilmore LLC as counsel.



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V E N E Z U E L A
=================


VENEZUELA: Maduro Defends Withdrawal of Major Banknote
------------------------------------------------------
BBC News reports that Venezuelan President Nicolas Maduro says his
decision to scrap the nation's most-used banknote has allowed it
to triumph over its enemies.

The withdrawal of the 100-bolivar note has prompted protests and
looting in several states as the supply of ready cash rapidly ran
out, according to BBC News.

But Mr. Maduro said taking millions of notes out of circulation
had smashed the black market, the report notes.

He has, however, postponed the withdrawal until early January.
Nevertheless, some businesses were reportedly still refusing to
accept the 100-bolivar notes, even though they remain legal tender
until the new year, the report relays.

There were more reports of rioting, the report relays.  In the
western state of Tachira, people raided warehouses in search of
food, the report discloses.

Many said they were afraid of what would happen next, despite the
postponement of the withdrawal, the report says.

The report discloses that at the Colombian border there were
scuffles as people scrambled to buy food and medicine, which are
scarce in Venezuela.

Mr. Maduro said that Venezuela's borders with Colombia and Brazil
would remain closed until the 100-bolivar note ceased to be legal
tender on January 2, in order to prevent black market trading, the
report says.

Venezuelans are only allowed to cross the border on foot for
family visits, the report notes.

Mr. Maduro said on state TV that 300 alleged looters had been
arrested, the report notes.

Addressing opposition parties, he said: "Don't come and tell me
they are political prisoners," the report relays.

He accused the riot leaders of taking instructions from President
Barack Obama, alleging they wanted to engineer a coup against
Venezuela's left-wing government, the report notes.

State TV showed a plane arriving carrying the first batch of
replacement notes, the VEB500, the report adds.

As reported in the Troubled Company Reporter-Latin America on
Sept. 28, 2017, S&P Global Ratings suspended its 'CCC-' local
currency issue ratings on four of the Bolivarian Republic of
Venezuela's local currency-denominated debt issues. At the same
time, S&P affirmed its 'CCC-' long-term foreign and local
currency sovereign issuer credit ratings. The outlook on the long-
term ratings is negative. In addition, S&P affirmed its 'C' short-
term foreign and local currency sovereign issuer credit ratings.
The transfer and convertibility assessment remains 'CCC-'.


                            ***********


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.

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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
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
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Information contained herein is obtained from sources believed to
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856-381-8268.


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