/raid1/www/Hosts/bankrupt/TCRLA_Public/171106.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
L A T I N A M E R I C A
Monday, November 6, 2017, Vol. 18, No. 220
Headlines
B A R B A D O S
BARBADOS: Despite Tax Measures, Economy in a Slump
B R A Z I L
BANCO SANTANDER BRASIL: S&P Affirms 'BB/B' ICR, Outlook Negative
CAMIL ALIMENTOS: S&P Affirms 'BB' CCR, Outlook Remains Negative
D O M I N I C A N R E P U B L I C
DOMINICAN REPUBLIC: More Jobs From 30 Companies to be Available
DOMINICAN REPUBLIC: Works to Manage and Fight Bird Flu
DOMINICAN REPUBLIC: Proposal Seeks to Split First Lady's Budget
M E X I C O
AXTEL SAB: Fitch Rates Proposed USD500 Million Notes 'BB-(EXP)'
P U E R T O R I C O
IGLESIA EPISCOPAL: S&P Puts 'CCC' Bond Rating on Watch Negative
RYDER MEMORIAL: S&P Puts 'B+' Bond Rating on Watch Negative
T R I N I D A D & T O B A G O
TRINIDAD & TOBAGO: To Collect $47MM Payout From CCRIF Policy
V E N E Z U E L A
VENEZUELA: Debt Crisis May Offer Political Upside for Maduro
X X X X X X X X X
* BOND PRICING: For the Week From Oct. 30 to Nov. 3, 2017
- - - - -
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B A R B A D O S
===============
BARBADOS: Despite Tax Measures, Economy in a Slump
--------------------------------------------------
Caribbean360.com reports that the Barbados economy is still in a
slump and remains on a downward track, with the island's foreign
reserves in a worse position despite onerous tax measures
introduced in the last budget.
Acting Central Bank Governor Cleviston Haynes reported that while
the economy posted a modest 1.4 per cent growth during the first
nine months of the year and raked in an additional BDS$98.6
million (US$49.3 million) in tax revenues, the foreign reserves
was way below the international benchmark of 12 weeks of imports
and the fiscal deficit was still too high, according to
Caribbean360.com.
In his report, which outlined the country's performance for the
first nine months of the year, international reserves plummeted to
just 8.6 weeks of imports or BDS$549.7 million (US$274.85
million), putting more pressure on the stability of the Barbados
dollar, Caribbean360.com says.
At the same time, he reported Government's overall debt had
climbed to 144 per cent of gross domestic product, with current
expenditure increasing by BDS$13.9 million (US$6.95 million),
largely due to an increase in grants to public institutions,
Caribbean360.com discloses.
The deficit, which is estimated at BDS$279 million (US$139.5
million) for the last six months, showed a BDS$115 million
(US$57.5 million) improvement over the same period in 2016,
Caribbean360.com relays.
Mr. Haynes said tough decisions were facing the Freundel Stuart
administration, Caribbean360.com notes.
He stayed clear of repeated calls from other economists and key
social partners for the government to seek help from the
International Monetary Fund or any other financial institution,
but stressed strong action had to be taken, Caribbean360.com
notes.
"It goes without saying that we are concerned about the direction
in which the reserves have been going," he said, Caribbean360.com
relays.
"Despite moderate economic growth and policy-induced reduction in
the fiscal imbalance, the Barbadian economy continues to face
significant economic challenges. In particular, strengthening of
the international reserves is needed to ensure that the reserve
buffer remain adequate in order to protect the fixed exchange rate
peg," he added.
He further urged the government to address expenditure,
underscoring the need for more cuts, Caribbean360.com relays.
"Political decisions will have to be taken as to where they want
to effect such cuts and what the nature of those cuts will be.
When I say cuts in expenditure it could come in different forms .
. . but the bottom line is that we have to reduce the size of the
fiscal deficit," Haynes stressed.
"The fiscal outlook underscores the need for expenditure restraint
in the short term to supplement the recently introduced revenue
measures, as Government seeks to place the public finances on a
sustainable path and reduce the debt overhaul," he added.
The Central Bank is forecasting growth of 1 to 1.5 per cent this
year, but it noted that this was largely dependent on whether
large scale tourism-related project got off the ground,
Caribbean360.com adds.
As reported by the Troubled Company Reporter-Latin America,
S&P Global Ratings lowered on Sept. 27, 2017, its long-term local
currency sovereign credit rating on Barbados to 'CCC' from 'CCC+'.
S&P also affirmed its long-term foreign currency sovereign rating
at 'CCC+. The outlook on both long-term ratings is negative. S&P
also affirmed the short-term ratings at 'C'. The transfer and
convertibility assessment for Barbados remains 'CCC+'.
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B R A Z I L
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BANCO SANTANDER BRASIL: S&P Affirms 'BB/B' ICR, Outlook Negative
----------------------------------------------------------------
S&P Global Ratings affirmed its 'BB/B' global scale and 'brAA-
/brA-1+' national scale issuer credit ratings on Banco Santander
(Brasil) S.A. (Banco Santander Brasil). The outlook on the global
and national scale ratings is negative. At the same time, S&P is
affirming the bank's stand-alone credit profile at 'bbb-'.
Banco Santander S.A. has continued to show gradual improvements in
its efficiency and fee revenue generation levels for the last few
years, but it still lags behind its main private competitors in
terms of profitability and overall business position. Asset
quality pressure, which is also impacting all other Brazilian
banks due to the country's recession, has jeopardized its ability
to improve profits, while S&P views its increased refinancing of
bad loans, which is also something most of its competitors did, as
a key risk for its future profitability and balance sheet quality,
therefore pressuring its risk position. At the same time, the bank
has sought to leverage its position as the largest foreign bank
with operations in wholesale and retail in Brazil, and it has been
able to enjoy a continuous reduction in funding costs--in part
because of management's efforts to do so. Its profits have been
partly underpinned by lower funding costs and the refinancing of
large loans for some of its corporate clients.
S&P said, "Our stand-alone credit profile for Santander is 'bbb-',
two notches above the sovereign rating on Brazil. Nevertheless,
Santander's exposure to sovereign risk continues to constrain its
ICR. The sovereign ratings limit those on Santander because, like
all other banks operating in Brazil, the bank's liquid assets are
mostly composed of government-owned securities. Under our stress
test that emulates the conditions of a sovereign default,
Santander's capital would be fully depleted. Therefore, the
ratings on the bank are limited by the sovereign ratings.
"On the other hand, we continue to consider Banco Santander Brasil
core to its parent, given its integration, ownership, strategy,
and long-term commitment, and we believe parent would provide
timely and sufficient support if needed; except if there is a
sovereign default. The bank has become the largest contributor to
its parent's earnings, shows strong integration with the parent in
terms of executive reporting, and also has strong interaction with
multinational companies and asset managers that are prime
customers of the parent company.
"Additionally, we view Banco Santander Brasil as a high
systemically important bank within the Brazilian financial system.
We believe that its sound presence in the retail segment makes it
a highly important player in the market, and its hypothetical
failure would likely harm the financial system and the economy. As
a result, we believe there is a moderately high likelihood of
extraordinary government support, stemming from our view of the
Brazilian government as being supportive towards its financial
system."
CAMIL ALIMENTOS: S&P Affirms 'BB' CCR, Outlook Remains Negative
---------------------------------------------------------------
S&P Global Ratings affirmed its 'BB' global scale and 'brAA-'
national scale corporate credit ratings on Camil Alimentos S.A.
The outlook remains negative. S&P doesn't rate any of the
company's debt.
S&P said, "The ratings affirmation reflects our expectation that
Camil will reduce debt and sustain improved liquidity following
the company's IPO, where it raised R$357 million in the primary
offering. As a result, its debt to EBITDA ratio should approach
1.5x by the end of fiscal year 2017 (ending in February 2018).
However, in our view, the improvement in the company's SACP will
be subject to financial policy decisions regarding further
acquisitions and shareholder remuneration strategies. While Camil
pursues its growth strategy, we believe the company could be more
active in merger and acquisition (M&A) transactions, which could
shift post-acquisition leveraged ratios into the 2x-3x range."
The sovereign rating on Brazil continues to cap the rating on
Camil due to the company's high exposure to the country -- this
drives the negative outlook on Camil.
Camil's leadership position in rice, beans, canned fish, and sugar
markets in Brazil, Chile, Peru, and Uruguay support the company's
ratings. Camil has also sustained resilient operating margins
during the economic downturn in Brazil, its main market, with
EBITDA margins consistently between 9.5%-11% over the past few
years. The company also benefits from some geographic
diversification: around 25% of its EBITDA comes from international
operations.
S&P said, "Although the company has historically grown through
acquisitions, our base-case scenario doesn't include any material
purchases. We expect Camil to post organic growth by increasing
volumes mainly in Brazil. Potential growth in other countries is
more limited as the company already hold a significant share in
those markets, with exception of Argentina, where the company has
more room to expand. In this scenario, we forecast that credit
metrics will remain strong, with debt to EBITDA close to 1.5x in
fiscal 2017 and between 1.0x and 1.5x in fiscal 2018, with free
operating cash flow (FOCF) increasing to above R$130 million in
fiscal 2017. We think the company's financial profile could
potentially have volatile cash flow ratios, due to the commodity
nature of its main products or potential additional leverage to
accommodate acquisitions over the next few quarters, so we're
keeping our significant financial risk profile despite recent
improvements in leverage and capital structure."
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D O M I N I C A N R E P U B L I C
===================================
DOMINICAN REPUBLIC: More Jobs From 30 Companies to be Available
---------------------------------------------------------------
Dominican Today reports that Special Border Development Zone
Council coordinator Luis Estrella disclosed that 30 companies have
prequalified for final approval, which will add a considerable
number of jobs to the 9,200 already provided by 81 certified
companies in the region.
The recently appointed executive director, quoted by El Nacional,
said that despite the difficulties and conflicts of interest in
the Border Development Law 28-01, its scope and results have been
positive, according to Dominican Today. "As a result of this law
in the area there are 46 companies in Montecristi, 14 in Santiago
Rodr°guez, 12 in Dajabon, five in Independencia and four in the
other southern provinces," El Nacional said, the report relays.
The report notes that Mr. Estrella said president Danilo Medina
fully supports the Council's relaunch, noting the increase in the
agency's budget, which barely reaches RD$10.0 million at present.
Mr. Estrella said the government aims to form a strong
institution, bringing together all related agencies to culminate
in a "Border Investment and Development Entity," to attract
investments and create jobs that in the historically impoverished
region, the report notes.
"We have the best of intentions and we are already drawing up
plans and programs to relaunch the Council, as is the intention of
president Medina, who is always working and giving priority to
actions that benefit the impoverished sectors of the population,"
the report relays.
As reported in Troubled Company Reporter-Latin America on July 24,
2017, Moody's Investors Service 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: Works to Manage and Fight Bird Flu
------------------------------------------------------
Dominican Today reports that Agriculture Minister Angel Estevez
disclosed the creation of a commission to control and eradicate
bird flu.
Mr. Estevez said the commission will work to boost poultry
production, and for the Dominican Republic to maintain its
sanitary standards free of the disease, and to monitor the
outbreak detected in northern Espaillat province, according to
Dominican Today.
The official said the US Animal and Plant Health Inspection
Service (APHIS), the International Regional Organization for
Animal Health (OIRSA), the Inter-American Agriculture Cooperation
Institute (IICA), among other institutions, have been asked to
provide specialists to manage the disease and work together with
local technicians to eradicate the outbreak.
Estevez also reiterated that the avian flu detected in a farm in
Espaillat province is under control, with the international
protocols applied, the report relays.
"Among the measures taken to control the outbreak, the birds and
eggs were eliminated, surveillance and monitoring measures were
implemented in an area of 5 kilometers around the outbreak,
including epidemiological tracking and maintenance of the
quarantine," the official said, the report adds.
As reported in Troubled Company Reporter-Latin America on July 24,
2017, Moody's Investors Service 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: Proposal Seeks to Split First Lady's Budget
---------------------------------------------------------------
Dominican Today reports that opposition Modern Revolutionary Party
(PRM) deputy Wellington Arnaud suggested splitting the increase
for the Office of the First Lady's budget and distribute the funds
among programs to prevent child pregnancies and violence against
women. Candida Montilla de Medina is the First Lady.
The legislator's proposal comes amid calls to cut the largess in
government, especially agencies such as the ministries of Youth,
Women, Culture, and Public Administration, according to Dominican
Today.
The report notes that Mr. Arnaud said that with the RD$294.0
million jump in the budget for the First Lady's Office next year
would total around RD$890.0 million, which in his view RD$147
million of that would be better used on programs to combat those
two ills through the of Public Health Ministry.
The National District deputy cited an Oxfam report that indicates
that of the 51,809 cases of domestic violence registered in 2016,
only 1 percent was prosecuted and 2 percent reached convictions,
the report relays.
As reported in Troubled Company Reporter-Latin America on July 24,
2017, Moody's Investors Service 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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M E X I C O
===========
AXTEL SAB: Fitch Rates Proposed USD500 Million Notes 'BB-(EXP)'
---------------------------------------------------------------
Fitch Ratings has assigned a 'BB-(EXP)' rating to Axtel S.A.B. de
C.V.'s (Axtel) proposed issuance of up to USD500 million of senior
unsecured notes due 2024. The proceeds from the issuance are
expected to be used to refinance the company's existing bank loans
and related issuance expenses.
KEY RATING DRIVERS
Axtel's ratings reflect the company's solid market position in the
enterprise telecom business segment, achieved by the merger with
Alestra in 2016, and limited exposure to retail segments where
competitive intensity is high. As a subsidiary of Alfa S.A.B. de
C.V. (Alfa, 'BBB-'/Stable), one of the largest business groups in
Mexico, the company has good access to financing, which bolsters
its financial flexibility. The ratings are tempered by Axtel's
weak financial profile for the rating category, small market
positions in Mexico and volatile demand outlook from its
government clients
Enterprise-driven Growth:
Fitch forecasts Axtel to undergo stable low single-digits revenue
growth in 2017 and 2018, driven mainly by continued solid growth
in the enterprise segment, which represented about 65% of its
total sales during the first nine months of 2017 (9M17). Fitch
believes that the demand outlook for network connectivity and IT
solutions for enterprise clients should remain relatively stable
in Mexico, in line with the regional trend. Also, the recurring
revenue proportion based on multi-year contracts represents about
95% of the company's total enterprise revenues, which should
remain relatively stable given the switching cost of service
providers.
Negatively, Fitch expects revenue contraction in the residential
segment to continue until 2018, while demand from government
clients could remain volatile. For the residential services, Fitch
expects continued subscriber loss for the wireless service until
the service discontinuation in 2018, which will dilute the steady
growth in its fiber-to-the-home (FTTH) subscribers. The mass
market segment revenue is forecast to resume growth from 2019, as
FTTH revenues continue solid double-digit growth annually backed
by steady expansion in the subscriber base. Any material
improvement in contract volumes from the public sector would be
challenging in the short to medium term, as the discretionary
budgets for IT and telecom investments will likely remain
constrained.
Contribution from Red Compartida Project:
Axtel's participation in Red Compartida project will enable
additional revenue growth headroom and a wider breadth of service
offerings from 2018. In November 2016, Ministry of Communications
and Transport of Mexico granted to ALTAN Redes, a multinational
consortium in which Axtel has about 2% stake in non-voting shares,
the exclusive right to use the 90 MHz spectrum in the 700 MHz band
and develop a national 4G wholesale network in Mexico. Based on
the vendor agreement for this project, Red Compartida, Axtel will
provide its assets, such as fiber capacity and data centers among
others, to support the project's coverage obligation. The company
expects to generate over MXN250 million revenues in 2018, with a
potential to scale up the business as the project progresses with
increased network coverage. In addition, Axtel plans to set up a
Mobile Virtual Network Operator/Enabler (MVNx) platform in 2018 by
utilizing Red Compartida networks. Fitch does not expect material
cash flow generation from the MVNx business at least for the short
to medium term given low operating margins for the service.
Positive Merger Impact:
The impact of Axtel's merger with Alestra has been positive in
terms of a strategic fit of Alestra's operations, increased market
presence, as well as opex and capex savings. Axtel disclosed that
the merger synergy during 2016 was about MXN500 million, with
additional MXN500 million headroom to be achieved in 2017 for a
total run-rate of MXN1 billion. Synergy benefits have and will
continue to come from network-related opex efficiencies and lower
corporate expenses, following the integration of operations. In
addition, Fitch believes that being a part of a reputable group in
Alfa helps Axtel gain better access to banks/capital markets,
leading to stronger financial flexibility.
Negative FCF to Continue:
Fitch forecasts that Axtel's negative FCF generation will remain
uncurbed at least for the short term. Fitch projects the company's
capital intensity, measured by capex/sales, to remain consistently
above 20% in 2017 and 2018 at around MXN3.3-MXN3.4 billion, which
will largely consume the projected CFFO during the period. Annual
cash interest payments in 2017 and 2018 should fall by about 50%
from the 2016 level of MXN2.4 billion, which was high due to
expenses related to the prepayment of Axtel's previous bonds.
Fitch does not expect any dividend payments in the short- to
medium-term.
High Leverage:
Axtel's current leverage is weak for the rating level, despite an
ongoing deleveraging trend, and its failure to continue to lower
leverage over the medium term would be negative for the ratings.
The company's adjusted net leverage was 4.2x as of Sept. 30, 2017,
which was modest improvement from 4.4x at end-2016. This is an
elevated level from Axtel's pre-merger leverage of 3.8x at end-
2015, due mainly to MXN depreciation against the USD, integration
costs, as well as continued revenue contraction in its government
business in 2016. Axtel is negatively exposed to MXN depreciation
as about 65% of its total debt is denominated in USD against its
approximately 90% of EBITDA generation in MXN.
Fitch forecasts the company's net leverage to remain stable at
around 4.0x over the medium term as steady increase in EBITDA
offsets then impact of modest negative FCF generation.
DERIVATION SUMMARY
Axtel's 'BB-' ratings reflect the company's relatively weak
financial profile, mainly its high leverage compared to mid-to-
high 'BB' category telecom operators in the region. The company's
weak market position and small scale of operations are also
negative considerations versus its peers in the rating category;
this is somewhat offset by its business concentration in the
enterprise segment which faces less competition than the
residential segment. Axtel's financial profile is weaker than
Columbian fixed-line operator Empresa de Telecomunicaciones de
Bogota, S.A., E.S.P, rated 'BB+'/Negative, and Colombia
Telecomunicaciones S.A., E.S.P., rated 'BB'/Stable. Axtel's
financial profile is deemed broadly in line with VTR Finance B.V.,
rated 'BB-'/Stable, which is a leading Chilean cable operator.
Parent/subsidiary linkage exists between Axtel and Alfa, given the
latter's 52.8% ownership in the company. However, the ratings are
based on Axtel's stand-alone credit profile given weak legal and
strategic linkages. No country ceiling constraint and operating
environment influence were in effect for the ratings.
KEY ASSUMPTIONS
Fitch's key assumptions within its rating case for the issuer
include:
-- Low-single-digit revenue growth on a pro forma basis in the
short- to medium-term, mainly led by enterprise segment;
-- WiMax service to be discontinued from mid-2018;
-- Stable EBITDA margin of 32%-33% in 2017-2018;
-- Capex to represent 22% of sales over the medium term;
-- Adjusted net leverage to gradually fall toward 4.0x over the
medium term.
RATING SENSITIVITIES
Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
-- Strong revenue growth backed by continued solid growth in
the enterprise and the FTTH business, with stable demand from
the government segment;
-- Positive FCF generation to strengthen its cash position;
-- Improved adjusted net leverage to comfortably below 3.5x on
a sustained basis.
Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
-- Unfavorable economic conditions negatively affecting
IT/telecom budgets of the corporate and public segments;
-- Uncurbed negative FCF generation;
-- Dpreciation of MXN against the USD in the absence of
meaningful hedge measures;
-- Failure to improve adjusted net leverage toward 4.0x on a
sustained basis (end-2016: 4.4x).
LIQUIDITY
Adequate Liquidity: Axtel's liquidity profile is adequate. The
company's cash balance was MXN722 million as of Sept. 30, 2017
against its short-term debt obligation of MXN734 million.
Following the proposed notes issuance, the company will not face
sizable bullet maturities until 2020, when MXN4.7 billion of bank
loans become due. While the company does not have any committed
credit facilities, Fitch believes that Axtel can retain solid
financial flexibility in terms of access to domestic financial
institutions in Mexico, as a part of Alfa group.
FULL LIST OF RATING ACTIONS
Fitch currently rates following ratings:
Axtel S.A.B. de C.V.
-- Foreign-currency Long-term Issuer Default Rating (IDR) at
'BB-'; Outlook Stable;
-- Local-currency Long-term IDR at 'BB-'; Outlook Stable;
-- National Long-term Rating at 'A-(mex)'; Outlook Stable.
Fitch has assigned the following rating:
Axtel S.A.B. de C.V.
-- 'BB-(EXP)' for proposed USD500 million senior unsecured notes
due 2024 .
======================
P U E R T O R I C O
======================
IGLESIA EPISCOPAL: S&P Puts 'CCC' Bond Rating on Watch Negative
---------------------------------------------------------------
S&P Global Ratings placed its 'CCC' rating on Puerto Rico
Industrial Medical & Higher Education & Environmental Pollution
Control Facilities Finance Authority's series 1999 bonds, issued
for Iglesia Episcopal Puertorriquena Inc., on CreditWatch with
negative implications.
"The CreditWatch with negative implications reflects uncertainty
related to IEP's current operating profile following the
devastating impact of Hurricane Maria to the island of Puerto
Rico," said S&P Global Ratings credit analyst Stephen Infranco.
S&P has reached out to request data and set up a call with
management to assess overall storm impact, but it has been unable
to make contact.
S&P's most recently reviewed IEP in October 2016, at which time it
lowered the rating to 'CCC' from 'CCC+' and assigned a negative
outlook, which at that time reflected the hospital's very limited
liquidity and financial flexibility, volatile financial operating
results and a debt profile that included a large contingent
liability due within five years.
Within Iglesia Episcopal Puertorriquena Inc., Hospital Episcopal
San Lucas Guayama, Hospital Episcopal San Lucas Inc. (HESL) and
IEP (parent) are obligated on the bonds.
S&P does not have enough detail on recent performance in light of
the hurricane to assess the full credit impact currently; however,
it expects to learn more within its 90-day CreditWatch period,
including the operating status of the hospital itself, the
financial impact of recent events along with management's
expectations for any offsetting funding relief from government
sources.
RYDER MEMORIAL: S&P Puts 'B+' Bond Rating on Watch Negative
-----------------------------------------------------------
S&P Global Ratings said it placed its 'B+' ratings on Puerto Rico
Industrial Medical & Higher Education & Environmental Pollution
Control Facilities Finance Authority's series 1994A bonds, issued
for Ryder Memorial Hospital, on CreditWatch with negative
implications.
"The CreditWatch with negative implications reflects uncertainty
related to Ryder's current operating profile following the
devastating impact of Hurricane Maria to the island of Puerto
Rico," said S&P Global Ratings credit analyst Jennifer Soule.
Management indicates Ryder has been closed for inpatient services
over the past month with significant damage to its roofing
fixtures. S&P understands that other services have remained open,
although the hospital continues to rely on generators for power
given there is still no electricity across most of the island and
especially so in Ryder's service area.
S&P most recently reviewed Ryder in February 2017, at which time
it lowered the rating to 'B+' from 'BB-' and assigned a negative
outlook.
Ryder's operating profile includes a dominant market share across
a large primary service area, although its population continues to
decline and carries anemic wealth and income indicators, as does
much of Puerto Rico. In recent years Ryder's financial profile has
been vulnerable, with weak financial operating performance and
thin balance sheet metrics for the rating level. Ryder's revenue
base is small and relies heavily on government reimbursement.
Management's goal for fiscal 2017 (ended Dec. 31, 2017) was to
return to profitable operations; however, given the extraordinary
nature of its current challenges, we believe this won't be
possible.
A pledge of Ryder's gross receipts of the 165-staffed bed hospital
in Humacao, P.R., secures the bonds. All of Ryder's debt is fixed
rate, and the organization is not a party to any swap
transactions.
S&P does not have enough detail on recent performance in light of
the hurricane to assess the full credit impact currently; however,
it expects to learn more within its 90-day CreditWatch period,
including the operating status of the hospital itself, the
financial impact of recent events along with management's
expectations for any offsetting funding relief from government
sources.
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T R I N I D A D & T O B A G O
===============================
TRINIDAD & TOBAGO: To Collect $47MM Payout From CCRIF Policy
------------------------------------------------------------
Trinidad Express reports that the Ministry of Finance confirmed a
story in the Express that the Trinidad & Tobago Government is
expected to receive a payout in the amount of US$7,007,886
(approximately TT$47.4 million) on its excess rainfall policy from
the Caribbean Catastrophe Risk Insurance Facility SPC (CCRIF).
In a statement, the Ministry of Finance confirmed that the
Government, through the Ministry, has completed and submitted the
required forms to CCRIF and will be in receipt of the funds soon.
The Ministry did not disclose in the release when it would receive
the money, what criteria would be used to determined how much
money flood victims receive or how soon it would begin to process
payments to those affected by last month's flooding.
=================
V E N E Z U E L A
=================
VENEZUELA: Debt Crisis May Offer Political Upside for Maduro
------------------------------------------------------------
Kejal Vyas and Anatoly Kurmanaev at The Wall Street Journal
reports that a looming debt default for Venezuela, long seen as
catastrophic for the country's oil-dependent economy, may yet
provide a vital political boost for embattled President Nicolas
Maduro and help him consolidate power in the near term ahead of
two crucial elections, bond investors and economists said.
Mr. Maduro disclosed plans to convene bondholders in Caracas on
Nov. 13 to negotiate a debt restructuring on the country's foreign
debt, estimated at between $100 billion and $150 billion,
according to The Wall Street Journal. However, investors said
that U.S. sanctions that restrict financial institutions from
investing in new debt instruments issued by Venezuela's
authoritarian government make a deal unlikely, triggering a messy
and prolonged default, the report relays.
By stopping payments on the debt, Mr. Maduro could double the
funds he has earmarked for imports next year by holding back on
some $1.7 billion in bond interest payments due in the remainder
of 2017 and about $9 billion in 2018, according to Eurasia Group,
offering relief-albeit brief-for a fast collapsing economy plagued
by galloping inflation and chronic food shortages, the report
notes.
"Maduro is adding up the numbers for the presidential elections
next year and is trying to see how to raise imports," Alejandro
Grisanti, an economist with the Caracas-based consultancy
Ecoanalitica said, the report relays. A default would give the
leftist leader a six-to-nine month window to try to ease shortages
that have pushed Venezuela to the edge of a humanitarian disaster,
according to Mr. Grisanti, the report says.
At the same time, U.S. sanctions that prohibit bondholders from
renegotiating debt with the Venezuelan government will allow Mr.
Maduro to rally his Socialist Party supporters and deflect blame
for the country's problems by pinning them on his ideological
rivals in Washington, said analysts at the risk consultancy Teneo
Intelligence, The Wall Street Journal relays.
"Politically the timing of this is not a coincidence," said John
Polga, professor of Latin America studies at the U.S. Naval
Academy in Maryland, the report relays. "If they can use some of
the extra money and nationalist rhetoric to boost approval to 30-
35%, all of a sudden, he could win the presidential elections," he
added.
That may only be a temporary respite before investors start
targeting Venezuela's oil shipments and external assets seeking
compensation, the report notes. But Mr. Maduro has few other
options as he tries to keep alive the revolutionary movement he
inherited from his mentor and predecessor, the late Hugo Chavez,
the report relays. The International Monetary Fund expects the
economy to shrink 12% and 6% in 2017 and 2018, respectively, while
inflation tops 1,000%, the report relays.
U.S. sanctions, rampant corruption in Venezuela, the scale of the
debt and different types of bondholders could all come together to
make for a chaotic restructuring or default, the report notes.
"This will be the most corrupt, chaotic, and messiest default in
the history of defaults," said Moises Naim, a distinguished fellow
at the Carnegie Endowment for International Peace in Washington,
the report relays. He said Venezuela wouldn't be saved by allies
China and Russia, who instead would complicate negotiations, the
report notes. "They will be another factor in the chaos, who will
intend to push to the front of the line to collect their debt,"
the report quoted Mr. Naim as saying.
For years, the Venezuelan government said it would continue paying
off debts, even as the country dramatically reduced imports and
shortages caused widespread malnutrition, the report relays.
However, Mr. Maduro struck a different tone, suggesting he had
regrets about having sent money to repay Wall Street when it could
have been used at home, the report notes.
"It hurts me because that money could be converted into schools,
or emergency rooms, or into homes," he said in a televised
address, the report relays.
Growing discontent led to four months of antigovernment
demonstrations earlier this year that cost at least 125 lives as
they were put down by state security forces that remain loyal to
Mr. Maduro, the report discloses. Control over the military, the
Supreme Court, and the national electoral council has helped the
former bus driver and union activist hold on to power during his
tumultuous four-year tenure, the report relays.
In addition, an all-powerful legislative superbody created by Mr.
Maduro's allies has left the political opposition in disarray and
split over how to confront the president's slide into
authoritarianism, the report relays.
The government stepped up its crackdown against political rivals
stripping one opposition lawmaker, Freddy Guevara, of his
parliamentary immunity from prosecution and banning him from
leaving the country, the report discloses. Mr. Guevara's
political party, Popular Will, denounced the move as an effort to
lock up the politician and silencing dissent, the report relays.
Mr. Maduro's ruling party dominated two elections marred by fraud
earlier this year, one to elect the legislative body that usurped
powers from the opposition-controlled congress as well as governor
elections last month, the report notes. But with detractors
divided, Mr. Maduro and his allies may still triumph in upcoming
races including mayoral elections slated for December, the report
says.
"They're making all the rules," said Jim Barrineau, co-head of
emerging-markets debt at Schroders, one of several large
bondholders who have stopped investing in Venezuelan debt over the
past several months, the report notes. "They're not going to get
displaced by the ballot box and the opposition is pretty toothless
at this point," he added.
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-'.
=================
X X X X X X X X X
=================
* BOND PRICING: For the Week From Oct. 30 to Nov. 3, 2017
---------------------------------------------------------
Issuer Name Cpn Price Maturity Country Curr
----------- --- ----- -------- ------- ---
BA-CA Finance Cayman Lt 0.518 62.07 KY EUR
AES Tiete Energia SA 6.7842 1.109 4/15/2024 BR BRL
Argentina Bogar Bonds 2 39.36 2/4/2018 AR ARS
Automotores Gildemeister 8.25 73.25 5/24/2021 CL USD
Automotores Gildemeister 6.75 67 1/15/2023 CL USD
Automotores Gildemeister 8.25 73.25 5/24/2021 CL USD
Automotores Gildemeister 6.75 65.5 1/15/2023 CL USD
CA La Electricidad 8.5 63.664 4/10/2018 VE USD
Caixa Geral De Depositos 1.439 63.167 KY EUR
Caixa Geral De Depositos 1.469 KY EUR
CSN Islands XII Corp 7 68 BR USD
CSN Islands XII Corp 7 66.266 BR USD
Decimo Primer Fideicomiso 6 53.225 10/25/2041 PA USD
Decimo Primer 4.54 43.127 10/25/2041 PA USD
Dolomite Capital 13.217 73.108 12/20/2019 CN ZAR
Enel Americas SA 5.75 56.172 6/15/2022 CL CLP
Gol Linhas Aereas SA 10.75 35.861 2/12/2023 BR USD
Gol Linhas Aereas SA 10.75 35.601 2/12/2023 BR USD
Inversora Electrica 6.5 67.625 9/26/2017 AR USD
Inversora Electrica 6.5 67.625 9/26/2017 AR USD
MIE Holdings Corp 7.5 64.78 4/25/2019 HK USD
MIE Holdings Corp 7.5 64.982 4/25/2019 HK USD
NB Finance Ltd 3.88 61.816 2/7/2035 KY EUR
Noble Holding 7.7 74.433 4/1/2025 KY USD
Noble Holding 5.25 56.279 3/15/2042 KY USD
Noble Holding 8.7 71.881 4/1/2045 KY USD
Noble Holding 6.2 60.129 8/1/2040 KY USD
Noble Holding 6.05 58.38 3/1/2041 KY USD
Odebrecht Finance Ltd 7.5 42.5 KY USD
Odebrecht Finance Ltd 5.125 56.938 6/26/2022 KY USD
Odebrecht Finance Ltd 7 68.053 4/21/2020 KY USD
Odebrecht Finance Ltd 7.125 41.366 6/26/2042 KY USD
Odebrecht Finance Ltd 4.375 40.002 4/25/2025 KY USD
Odebrecht Finance Ltd 5.25 39.211 6/27/2029 KY USD
Odebrecht Finance Ltd 6 44.75 4/5/2023 KY USD
Odebrecht Finance Ltd 5.25 39.018 6/27/2029 KY USD
Odebrecht Finance Ltd 7.5 42.95 KY USD
Odebrecht Finance Ltd 4.375 40.363 4/25/2025 KY USD
Odebrecht Finance Ltd 7.125 41.635 6/26/2042 KY USD
Odebrecht Finance Ltd 6 52.625 4/5/2023 KY USD
Odebrecht Finance Ltd 5.125 55.873 6/26/2022 KY USD
Odebrecht Finance Ltd 7 67.368 4/21/2020 KY USD
Petroleos de Venezuela 8.5 74.5 10/27/2020 VE USD
Petroleos de Venezuela 6 30.458 5/16/2024 VE USD
Petroleos de Venezuela 6 30.517 11/15/2026 VE USD
Petroleos de Venezuela 9.75 35.677 5/17/2035 VE USD
Petroleos de Venezuela 9 39.279 11/17/2021 VE USD
Petroleos de Venezuela 5.375 30.267 4/12/2027 VE USD
Petroleos de Venezuela 8.5 72.5 10/27/2020 VE USD
Petroleos de Venezuela 12.75 45.278 2/17/2022 VE USD
Petroleos de Venezuela 6 30.367 5/16/2024 VE USD
Petroleos de Venezuela 6 30.387 11/15/2026 VE USD
Petroleos de Venezuela 9 39.316 11/17/2021 VE USD
Petroleos de Venezuela 9.75 35.893 5/17/2035 VE USD
Petroleos de Venezuela 6 28.346 10/28/2022 VE USD
Petroleos de Venezuela 5.5 30.123 4/12/2037 VE USD
Petroleos de Venezuela 12.75 45.23 2/17/2022 VE USD
Polarcus Ltd 5.6 75 3/30/2022 AE USD
Provincia del Chubut 4 10/21/2019 AR USD
Siem Offshore Inc 4.04527 69.5 10/30/2020 NO NOK
Siem Offshore 3.75176 65.75 12/28/2021 NO NOK
STB Finance 2.05771 56.243 KY JPY
Sylph Ltd 2.367 64.438 9/25/2036 KY USD
US Capital 1.63611 54.774 12/1/2039 KY USD
US Capital 1.63611 54.774 12/1/2039 KY USD
USJ Acucar 9.875 67 11/9/2019 BR USD
USJ Acucar 9.875 67 11/9/2019 BR USD
Venezuela 13.625 68.25 8/15/2018 VE USD
Venezuela 7.75 44.065 10/13/2019 VE USD
Venezuela 11.95 40.785 8/5/2031 VE USD
Venezuela 12.75 45.19 8/23/2022 VE USD
Venezuela 9.25 39.645 9/15/2027 VE USD
Venezuela 11.75 40.005 10/21/2026 VE USD
Venezuela 9 36.285 5/7/2023 VE USD
Venezuela 9.375 37.69 1/13/2034 VE USD
Venezuela 13.625 72.25 8/15/2018 VE USD
Venezuela 7 34.23 3/31/2038 VE USD
Venezuela 7 59.19 12/1/2018 VE USD
***********
Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades. Prices
for actual trades are probably different. Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind. It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.
Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets. A company may establish reserves on its balance sheet for
liabilities that may never materialize. The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.
Submissions about insolvency-related conferences are encouraged.
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 * * *