TCRLA_Public/171122.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 22, 2017, Vol. 18, No. 232



TINUVIEL SERIE XXIV: Moody's Rates ARS4,714,799 Certs. 'C(sf)'


SEADRILL LTD: Egan-Jones Cuts FC Sr. Unsecured Debt Ratings to D


BANCO SANTANDER: Fitch Affirms B+ IDR; Revises Outlook to Positive
BANCO VOTORANTIM: Moody's Rates Proposed USD Tier 1 Sec. B2(hyb)
BRAZIL: Economic Activity Rises for 3rd Straight Quarter
CELESC DISTRIBUICAO: Moody's Affirms Ba3 Global Issuer Rating
JBS SA: Fitch Lowers LT Foreign & Local Currency IDR to BB-

ODEBRECHT OFFSHORE: Moody's Withdraws Ca $1.69BB Sr. Notes Rating

D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: CCP Heightens Fight Against Smuggling


DANPER TRUJILLO: Receives $20.7MM IDB Financing to Up Production
* PERU: Filled With Opportunities for Spanish Firms, Minister Says

P U E R T O    R I C O

BAILEY'S EXPRESS: Sale of 23 Trucks to Toria for $145K Approved


VENEZUELA: Pumps Below OPEC Target

                            - - - - -


TINUVIEL SERIE XXIV: Moody's Rates ARS4,714,799 Certs. 'C(sf)'
Moody's Latin America Agente de Calificacion de Riesgo (Moody's)
has rated Fideicomiso Financiero Tinuviel Serie XXIV. 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.

- ARS46,290,753 in Class A Floating Rate Debt Securities (VDFA)
   of "Fideicomiso Financiero Tinuviel Serie XXIV", rated
   (sf) (Argentine National Scale) and Ba3 (sf) (Global Scale)

- ARS6,429,271 in Class B Floating Rate Debt Securities (VDFB)
   of "Fideicomiso Financiero Tinuviel Serie XXIV", rated
   (sf) (Argentine National Scale) and B3 (sf) (Global Scale)

- ARS28,288,794 in Class C Floating Rate Debt Securities (VDFC)
   of "Fideicomiso Financiero Tinuviel Serie XXIV", rated
   (sf) (Argentine National Scale) and Ca (sf) (Global Scale)

- ARS4,714,799 in Certificates (CP) of "Fideicomiso Financiero
   Tinuviel Serie XXIV", rated (sf) (Argentine National
   Scale) and C (sf) (Global Scale).


The rated securities are payable from the cash flow coming from
the assets of the trust, which is an amortizing pool of
approximately 7,857 eligible personal loans denominated in
Argentine pesos. The loans bear a fixed interest rate and are
originated by Tinuviel S.A., a non-regulated financial company
based in Argentina. Only the installments due after November 20th,
2017 are assigned to the trust.

The VDFA will bear a floating interest rate (BADLAR plus 300bps)
with the first coupon payment date in January 2018. The VDFA's
interest rate will never be higher than 28% or lower than 22%. The
VDFB will bear a floating interest rate (BADLAR plus 400bps) from
the issue date which will never be higher than 29% or lower than
23%. The VDFC will bear a fixed interest rate of 39%.

Overall credit enhancement is comprised of subordination, various
reserve funds and excess spread. The transaction has initial
subordination levels of 25.2% for the VDFA and 14.8% for the VDFB,
based on the pool's principal balance as of November 20th, 2017.
The subordination levels will increase overtime due to the turbo
semi-sequential payment structure.

The transaction also benefits from an estimated 35.9% annual
excess spread, before considering losses, taxes or prepayments and
calculated at the caps of 28% and 29% for the VDFA and VDFB

The securitized loans are primarily granted to pensioners and
retirees domiciled in Argentina.

Tinuviel has signed different agreements with local banks to
deduct the installments directly from the borrower's bank

Tinuviel has also entered into a special agreement with
Cooperativa de CrÇdito, Consumo y Vivienda 20 de Julio Ltda.
(Cooperative) to act as complementary collection agent. Through
this agreement, Tinuviel can deduct the loan installments from
borrowers with accounts in Banco de la Nacion Argentina (BNA). The
percentage collected by the cooperative accounts for 84.1% of the

Tinuviel has signed agreements with Banco Patagonia (Patagonia)
and Banco Meridian (Meridian) to deduct the loans installments
from the borrower's account for the other 15.9% of the securitized

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

Although Moody's analyzed the historical performance data of
previous transactions and similar receivables originated by
Tinuviel, the actual performance of the securitized pool may be
affected, among others, by economic activity, high inflation rates
compared to nominal pensions increases in Argentina, the
operational and financial strength of Tinuviel (and the
cooperative), as well as any change in the agreements with the
collecting banks.

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.

Delinquency levels can be affected by changes in the macroeconomic
variables that impact the borrower's credit profile. Serious
operational disruption that affects Tinuviel, the cooperative
and/or the bank agreements may also lead to an increase in
delinquency levels.

Factors that may lead to an upgrade of the ratings include the
building of credit enhancement over time due to the turbo semi-
sequential payment structure.

Loss and Cash Flow Analysis:

Moody's considered the credit enhancement provided in this
transaction through the initial subordination levels for each
rated class, the historical performance of Tinuviel's portfolio
and performance of previous series.

In addition, Moody's considered the impact of any change/issue in
the role played by the cooperative as complementary collection
agent, Tinuviel's role as servicer and the bank agreements as the
main collection mechanism.

Considering the above factors, Moody's determines its assumptions
of default levels, prepayments and losses upon the default of

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 determine
the expected loss for the rated securities.

In assigning the rating to this transaction, Moody's assumed a
lognormal distribution for defaults on the main pool with a mean
of 13.0% and a coefficient of variation of 60%. Also, Moody's
assumed conditional prepayment rate (CPR) of 6.0%.

Moody's modeled scenarios in which the counterparties default,
assuming that the defaults on the pool would increase by three
times as well as one month of collection lost due to commingling

To determine the rating assigned to the notes, Moody's has used an
expected loss methodology that reflects the probability of default
multiplied by the severity of the loss expected for each security.
In order to allocate losses to each class in accordance with their
priority of payment and relative size, Moody's has used a cash-
flow model (ABSCORE) that reproduces many deal-specific
characteristics. Weighting each loss scenario's severity result
with its probability of occurrence, the model has calculated the
expected loss level for each security, as well as the expected
average life. Moody's model then compares the quantitative values
to the Moody's Idealized Expected Loss table for each tranche.

The model results showed 0.9% expected loss for the VDFA, 6.8% for
the VDFB, 45.7% for the VDFC and 99.9% for the Certificates.

Stress Scenarios:

Moody's ran several stress scenarios, including increases in the
default rate assumptions. If default rates were increased by 3
percentage points from the base case scenario, the ratings of the
VDFA Floating Rate Securities would likely be downgraded to B1
(sf), the VDFB Floating Rate Securities would likely be downgraded
to Caa2 (sf), whereas the VDFC and the Certificates would remain

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


SEADRILL LTD: Egan-Jones Cuts FC Sr. Unsecured Debt Ratings to D
Egan-Jones Ratings Company, on Sept. 13, 2017, lowered the foreign
currency and local currency senior unsecured ratings on debt
issued by Seadrill Ltd. to D from CC.

Previously, on Aug. 29, 2017, EJR lowered the senior unsecured
ratings on the Company's debt to CC from CCC+. It also downgraded
the foreign currency and local currency commercial paper ratings
on the Company to D From C.

Seadrill Limited, an offshore drilling contractor, provides
offshore drilling services to the oil and gas industry worldwide.
Founded in 2005, Seadrill Limited is incorporated in Bermuda and
managed from London. On September 12, 2017, SeaDrill Limited,
along with its affiliates, filed a voluntary petition for
reorganization under Chapter 11 in the U.S. Bankruptcy Court for
the Southern District of Texas.


BANCO SANTANDER: Fitch Affirms B+ IDR; Revises Outlook to Positive
Fitch Ratings has revised the Outlook on the Long-Term Issuer
Default Ratings (IDRs) for certain Argentine financial
institutions (FIs) to Positive from Stable following Fitch's
revision of the Outlook on Argentina's Sovereign Rating (SR) on
Nov. 7, 2017. The entities affected by this rating action are:

-- Banco Santander Rio S.A.;
-- BBVA Banco Frances S.A.;
-- Banco Macro S.A.;
-- Banco Supervielle S.A.;
-- Tarjeta Naranja S.A.

At the same time, Fitch has affirmed the Foreign and Local
Currency Issuer Default Ratings (IDRs) of Banco Hipotecario S.A.
with a Stable Outlook.

The actions on selected FIs are exclusively driven by the
Sovereign Outlook revision. The ratings of the Argentine issuers
that are not mentioned above remain unchanged and were not
affected by this portfolio review.

The rated banks are among the largest private-sector universal
commercial banks in the country. While the IDRs of Santander Rio
and BBVA Frances are driven by parent support, the IDRs of Macro,
Supervielle and Hipotecario are driven by their Viability Ratings
(VRs), and in the case of TN, its standalone intrinsic financial

In Fitch's view, regardless of their overall adequate financial
condition, these entities' ratings are constrained by the low SR
of Argentina and the still volatile economic and operating
environment, although some recent structural improvements to
Argentina's policy framework could benefit the bank's performance
in the medium term.

Meanwhile, the Outlook on Hipotecario's IDRs remains Stable as the
bank faces the challenge of improving its funding profile and its



The likelihood of parent support drives the Local Currency IDRs of
Santander Rio and BBVA Frances. Despite Banco Santander, S.A.'s
(SAN; A-/Stable) and Banco Bilbao Vizcaya Argentaria, S.A.'s
(BBVA; A-/Stable)strong financial profile, Santander Rio and BBVA
Frances' rating uplift from support is limited to one notch above
Argentina's Local Currency Long-Term IDR and faces as well the
downside risks of high economic stress and the country's tentative
policy reforms.

Macro's VR and IDRs reflect its higher risk appetite and growth
strategy relative to international and domestic peers, which is
balanced by its ample capital cushion, as well as its diverse
funding and ample liquidity.


Supervielle's VR and IDRs are driven by its improved
capitalization, adequate funding and liquidity profile, and
gradually strengthening franchise. Fitch also considers the bank's
adequate profitability and asset quality, although these are
somewhat distorted by high inflation.

TN's IDRs are driven by its higher risk appetite relative to bank
peers and its business concentration in credit cards targeting
low- and middle-income segments. Ratings also consider TN's
reliance on short-term payables to merchants, which is partly
mitigated by consistent double-digit operating ROAAs, as well as
adequate tangible common equity of 20% of tangible assets at mid-


Hipotecario's VR and IDRs reflect its adequate capitalization,
despite a steady decline in recent years due to elevated asset
growth. The ratings also consider the bank's stable asset quality
and adequate profitability.


Local and Foreign Currency IDRs


Santander Rio and BBVA France's IDRs are sensitive to a change in
Fitch's views on their parents' ability and propensity to provide
support. Santander Rio and BBVA Frances' IDR and VR would likely
move in line with any change to Argentina's SR.


Upside potential in the ratings of Macro, Supervielle, and TN is
contingent upon an upgrade of the SR. A negative rating action or
deterioration in the operating environment that leads to a
material deterioration in their financial profiles would
negatively pressure the ratings of Supervielle, Macro and TN.


In addition to a sovereign upgrade, upward ratings potential for
Hipotecario is contingent on the successful implementation of the
bank's new strategy, which aims to improve its funding mix and
earnings while maintaining adequate capital levels. The ratings
could be negatively affected by a sustained decline in liquidity
or capital due to deterioration in financial performance or asset

Fitch has taken the following rating actions:

Santander Rio
-- Long-Term Local Currency IDR affirmed at 'B+'; Outlook revised
    to Positive from Stable.

BBVA Frances
-- Long-Term Local Currency IDR affirmed at 'B+'; Outlook revised
    to Positive from Stable.

-- Long-Term Foreign and Local Currency IDRs affirmed at 'B';
    Outlook revised to Positive from Stable.

-- Long-Term Foreign and Local Currency IDRs affirmed at 'B';
    Outlook revised to Positive from Stable.

-- Long-Term Foreign and Local Currency IDRs affirmed at 'B';
    Outlook revised to Positive from Stable.

Banco Hipotecario S.A. (Hipotecario)
-- Long-Term Foreign and Local Currency IDRs affirmed at 'B';
    Outlook Stable.

BANCO VOTORANTIM: Moody's Rates Proposed USD Tier 1 Sec. B2(hyb)
Moody's Investors Service has assigned a B2 (hyb) rating to the
proposed USD-denominated non-cumulative, non-convertible non-
viability perpetual Additional Tier 1 capital securities to be
issued by Banco Votorantim S.A. (BV).

The capital securities are Basel III-compliant, and the terms and
conditions have been defined with the purpose of qualifying the
instrument as Additional Tier 1 capital pursuant to Brazilian

The rating is subject to receipt of final documentation, the terms
and conditions of which are not expected to change in any material
way from the draft documents that Moody's has reviewed.

The following rating was assigned to Banco Votorantim S.A. non-
viability perpetual capital securities:

-- Preferred Non-cumulative foreign currency rating: B2 (hyb)


The B2 (hyb) rating is positioned three notches below the ba2
adjusted baseline credit assessment (BCA) of Banco Votorantim
S.A., in line with Moody's standard notching guidance for non-
cumulative preferred securities with a full principal write-down
triggered at or close to the point of non-viability. The three-
notch difference from the adjusted BCA considers the capital
securities' higher probability of default related to the potential
that the coupon payment could be suspended and/or the principal
could be written down prior to a failure of the bank.

The rating assigned to the notes also incorporates Moody's view of
the high likelihood of support from Banco do Brasil S.A. (Ba2
negative, ba2), which adjusted BCA of ba2 results from one notch
of affiliate support uplift from its ba3 BCA.

Under the terms of the securities, the principal will be fully
written down in the event that (i) BV's Common Equity Tier 1
(CET1) capital ratio is equal or falls below 5.125%; (ii) if a
public sector capital injection -- or equivalent support -- would
otherwise be necessary to maintain the bank as a going concern;
(iii) if the Central bank temporarily assumes control of the bank
or, otherwise, intervenes in it; or (iv) the Central Bank
otherwise determines that a write-down is necessary. BV reported a
CET1 ratio of 10.9% in September 2017. Because the notes will not
be written down until the bank is at or near the expected point of
non-viability, Moody's does not accord them any capital credit.
Hence, the bank's standalone credit profile will not benefit from
the issuance.

The securities also include a mandatory coupon skip mechanism,
which is non-cumulative, if (i) the bank does not have sufficient
distributable profits and accumulated profit reserves to make the
coupon payment; (ii) the bank defaults and/or the regulator
imposes any restrictions on the payment of dividends; (iii) the
coupon payment would result in the bank's capital ratios falling
below the minimum regulatory requirements for Common Equity Tier 1
Capital, Tier 1 Capital or Regulatory Capital.

The notes (i) will be subordinated in rights and claims to BV's
senior liabilities, (ii) junior to all other present or future
"preferred" subordinated indebtedness, (iii) will rank pari passu
with all other existing and future Tier 1 liabilities and (iv)
will be senior to Common Equity Tier 1 Capital.

The proceeds of the issuance will be used to enhance the bank's
capital position and for general purposes.


In line with the negative outlook on BV's senior debt ratings, the
rating on the notes faces downward pressures at this time given
the challenges the bank faces to implement a new lending strategy
focused on the corporate and commercial segments as the economic
conditions improve and credit demand recovers. The rating could be
downgraded if the bank's capital metrics decline or if
profitability weakens materially. A deterioration in BV's funding
structure and tenors, with increasing reliance on short-term
instruments, and a meaningful reduction in its liquid resources
would have negative rating implications. The rating would also
face downward pressure if Banco do Brasil and/or Brazil's
sovereign rating were to be downgraded.

The principal methodology used in this rating was Banks published
in September 2017.

BRAZIL: Economic Activity Rises for 3rd Straight Quarter
EFE News reports that Brazil's economic activity rose 0.58 percent
in the third quarter, marking three straight quarters of growth
following the severe recession that affected the South American
country in 2015 and 2016, the Central Bank said.

Economic activity expanded 1.1 percent in the first quarter and
0.39 percent in the second quarter, according to EFE News.

As reported in the Troubled Company Reporter-Latin America on
Nov. 14, 2017, Fitch Ratings has affirmed Brazil's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'BB' with a
Negative Outlook.

CELESC DISTRIBUICAO: Moody's Affirms Ba3 Global Issuer Rating
Moody's America Latina Ltda. affirmed the Ba3 global scale issuer
rating of Celesc Distribuicao S.A and changed the outlook to
positive. At the same time Moody's assigned a Corporate Family
Rating (CFR) of Ba3/ to Centrais Eletricas de Santa Catarina
S.A., Celesc Distribuicao's parent company. As part of this
action, Moody's withdrew the issuer rating assigned to Celesc on a
stand-alone basis.


Centrais Eletricas de Santa Catarina S.A.

-- Corporate Family Ratings assigned at Ba3 (Global Scale) and (Brazil National Scale)

-- Issuer Ratings of B1 (Global Scale) and (Brazil
   National Scale) withdrawn

-- Outlook: changed to positive from negative

Celesc Distribuicao S.A

-- Senior unsecured debt ratings affirmed at Ba3 (Global Scale)
   and revised to from (Brazil National Scale)

-- Issuer Ratings affirmed at Ba3 (Global Scale) and revised to from (Brazil National Scale)

-- Outlook: changed to positive from negative


The rating action follows Moody's assessment of recent
developments that, in Moody's view, will support a gradual
strengthening of Celesc's credit profile.

In July of this year, Brazil's electric sector regulator Aneel
renewed the concession of Celesc's main power plant Pery (30MW of
installed capacity) for a period of 30 years. Pery accounts for
28% of Celesc's generation installed capacity. Aneel also approved
a compensation in favor of Celesc from unamortized assets for a
value of BRL 114 million that will be paid through the new
concession period.

Celec settled a long standing dispute with Brazil's power
commercialization chamber (CCEE) to repay suspended sector fees
that had been accumulated at energy development account fund (CDE)
since April 2015. The settlement of this contingency supports a
more predictable cash flow stream for the company. Future payments
will be normalized as part of the agreement. Celesc will repay the
past-due amounts of BRL 1.2 billion over 30 months from July 2017
causing extra costs of around BRL 500 million in 2018 and 2019

Celesc is well advanced in securing long-term financing that would
enable the company to cover its capex requirements for the period
2018 to 2022. The company expects to close a loan of around USD
345 million (BRL 1.1 billion equivalent) from the Inter-American
Development Bank (IDB) and from the Agence Francaise de
Developpement (AFD). Moody's anticipates the loan to be subscribed
by early 2018 following its approval in the legislative assembly
of the state of Santa Catarina in September this year.

Celesc's corporate family rating (CFR) reflect its consolidated
debt structure, which is essentially made of senior unsecured
obligations either debentures or loans with domestic banks. The
issuer ratings of Celesc Distribuicao are the same level as the
CFR of its parent company Celesc. This reflects the dominance of
Celesc Distribuicao within the group as the distribution
subsidiary accounts for over 80% of consolidated EBITDA, as well
as the high degree of financial linkages between Celesc
Distribuicao and other subsidiaries within the Celesc group, due
to cross default provisions embedded in its debt documents.

Celesc's Ba3/ CFR further reflects (i) a moderate leverage
relative to peers, even considering the afore-mentioned additional
debt (ii) adequate credit metrics for the rating category as shown
by a Cash from operations before working capital change (CFO pre
WC) to debt ratio of 17.5% and CFO pre WC interest coverage of
2.2x in the last twelve months ended June 30, 2017, (iii) a
supportive regulatory framework recently evidenced in the
additional tariffs increase component received in August 2017 to
cover the higher projected energy cost reflecting poor hydrology

Celesc's CFR is constrained by (i) expectations that the higher
capex due to continued investments in quality of service will
result in negative free cash flow generation in 2017 and 2018 (ii)
record low level of hydropower reservoirs in Brazil that will
continue to pressure energy costs (iii) the subdued level of
energy consumption amid a very gradual economic recovery with
demand growing by a modest 3% in the nine months to September 30,

The positive outlook reflects Moody's expectations that Celesc
will strengthen its cash flow from operations (before capex) going
forward driven by higher consumption on the back of Brazil's
economic recovery, and improvements in regulatory loss rates and
quality of service indicators.

Celesc's liquidity profile is adequate. As of September 30, 2017
the company had BRL 965 million in available cash (including
marketable securities) and less than BRL 400 million in debt
maturing in the next 12 months. Celesc has kept sufficient cash in
hand to cover upcoming debt maturities. Moody's anticipates that
the successful closing of the loan with the IDB/AFD loan will
provide sufficient funding to cover the company's operational and
capital expenditures over the foreseeable future.


An upgrade of the assigned ratings could be considered upon
sustainable growth in consumption trends, compliance with
regulatory targets and improvements in operating performance
leading to CFO pre WC to debt remains above 20% and CFO pre WC
interest coverage ratio exceeding 3.5x.

Conversely a weakening in consumption trends and/or continued
failure to meet regulatory targets leading to a deterioration in
the company's credit metrics such that CFO pre WC to debt falls
below 15% and CFO pre WC interest coverage remains sustainably
below 2.0x could prompt a rating downgrade.

Headquartered in Florianopolis, in the state of Santa Catarina,
Brazil, Celesc is an electricity utility company specialized in
the generation and distribution of electricity. Through its wholly
owned subsidiary Celesc Distribuicao (responsible for 82% of
consolidated EBITDA) the company serves a population of
approximately 6 million including 2.8 million consumer units
across 264 municipalities in the state of Santa Catarina and one
municipality in the state of Parana. Celesc also owns a hydropower
generation unit through small hydropower plants with a total of
around 107MW in installed capacity. Celesc also holds a 51% equity
interests in Companhia de Gas de Santa Catarina, a gas
distribution company , and minority interests in small hydropower
projects, transmission and water sewage assets. Celesc is
controlled by the state government of Santa Catarina, which holds
50.2% of the company's voting capital and 20.2% of its total

In the twelve months ended September 30, 2017 the company reported
BRL6.4 billion in net revenues (excluding construction revenues)
and BRL42 million in net income respectively.

The principal methodology used in these ratings was Regulated
Electric and Gas Utilities published in June 2017.

JBS SA: Fitch Lowers LT Foreign & Local Currency IDR to BB-
Fitch Ratings has downgraded JBS S.A.'s (JBS) Long-term Foreign
and Local Currency Issuer Default Ratings (IDRs). The senior
unsecured notes guaranteed by JBS S.A. were downgraded to 'BB-'
from 'BB.' Fitch has also downgraded the company's National Scale
rating to 'A'(bra) from 'AA.' All of the ratings above remain on
Rating Watch Negative.

The downgrade to 'BB-'/Negative Watch is due to JBS' reliance on
banks to roll-over the short-term debt related to its
stabilization agreement that is due in July 2018. It also reflects
the uncertainty surrounding the various investigations that are
occurring at JBS and with its controlling shareholder. The
company's rating were kept in the 'BB' and 'A (bra)' rating
categories as it is believed the company will be successful in
rolling over this debt and that the fines, if any, will be

The Negative Watch will remain until refinancing and legal risks


Risks Remain High: Several investigations involving JBS and its
shareholders continue to move forward. They include administrative
procedures by the CVM (Brazilian Securities and Exchange
Commission), potential fines from the U.S. Department of Justice,
and an investigation by Brazil's attorney general on possible
breaches of the terms agreed in the J&F leniency agreement. These
ongoing legal matters create uncertainty regarding the timing and
magnitude of potential fines that the company could be facing.
They also represent a threat to the maintenance of the leniency
agreement signed by the controlling shareholders J&F Investimentos
SA. (J&F) with the Brazilian Federal Public Prosecutor's Office
(MPF) concerning allegations of corruption.

Weak Corporate Governance: The group's future succession plan and
therefore strategic long-term direction remain undefined despite
recent changes among top executives, including the replacement of
the ex-CEO by Jose Batista Sobrinho, JBS Founder. However, Fitch
notes that JBS continues to perform well as the group is run by
division heads reporting to a global COO (Chief Operating

Lower Leverage Expected: Fitch expects JBS to continue to
deleverage due to asset sales and the strong performance of the
company's U.S. operations due to increased U.S. cattle
availability, strong demand for protein in domestic and exports
markets. The recovery of Seara's profitability in Brazil because
of lower corn prices and better consumer environment has also
positively affected its performance. Fitch expects JBS to generate
strong free cash flow due to steady capex and higher EBITDA. Fitch
forecasts JBS' net debt to EBITDA ratio to be 3.3x in FYE17 and
decline to below 3x in FYE18. JBS reported an LTM Net debt/ EBITDA
ratio of 3.4x as of Sept. 30, 2017, down from 4.2x as of June 30,

Solid Business Profile: JBS' ratings are supported by its strong
business profile as the world's largest beef and leather producer
and its diversification in chicken, beef, pork and prepared food.
The company's product and geographic diversification help mitigate
risks related to disease and trade restrictions. Fitch estimates
that approximately 85% of group's EBITDA is generated from JBS'
operations outside Brazil, primarily in the U.S., Australia,
Canada and Europe.


JBS ratings reflect its reliance on banks to roll-over the short-
term debt, ongoing litigation issues and weak corporate
governance. JBS's business profile is strong due to its size,
geographical and protein diversification in pork, poultry and
beef. The company is the most geographically diversified company
in the protein sector rated by Fitch due to its strong presence in
the USA, South America, Australia and Canada. This geographic
diversity enables the group to mitigate business volatility
inherent to the industry. The Outlook for the protein industry
remains positive due to international and domestic demand. JBS'
business profile compares favourably to Marfrig Global Foods ('
BB-'/Stable Outlook) and Minerva SA ('BB-'/Stable Outlook).
Minerva is a pure play in the beef industry in South America and
Marfrig's presence in the USA is limited to Keystone (mainly

With an LTM Net debt/ EBITDA ratio at 3.4x, JBS's net leverage is
stronger than its Brazilian protein peers and Fitch expects JBS to
generate strong FCF this year while the other Brazilian peers have
displayed negative FCF due to expansion capex. However, JBS
leverage remains higher than Tyson Foods Inc ('BBB'/ Stable
Outlook) or Smithfield Foods Inc ('BBB'/Stable Outlook). No
country-ceiling or operating environment aspects impact the


Fitch's key assumptions within Fitch rating case for the issuer
-- EBITDA of about BRL14billion in FYE17;
-- Capex of BRL3.5 billion in 2017;
-- Net debt/ EBITDA below 3x in 2018.


Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
-- An upgrade is not considered at the moment.]

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
-- Large legal fines that would put pressure on the company's
    liquidity and deleverage in the near-term could trigger a
-- No extension or advance discussion with banks by end of March
    2018 to extend the company's high short-term debt burden.]


The company signed a debt stabilization agreement with several
financial institutions on July 25, 2017, which allowed it to roll-
over most of the short-term debt of its Brazilian subsidiary. The
agreement imposes restrictions regarding leverage, acquisitions,
incurrence of short-term debt in Brazil, and allocation of
proceeds from asset sales to debt repayment. It also required JBS
S.A. to provide additional collateral to the banks in the form of
accounts receivable and inventory. The signed agreement is valid
until July 2018.

The company embarked on a BRL6billion asset disposal program
following the signing of this agreement, which was almost complete
after the divestment of JBS Mercosul, Moy Park and the stake in
Vigor Alimentos S.A. JBS is also finalizing the divestment of Five
Rivers cattle feedlot. As of Sept. 30, 2017, JBS had BRL14.1
billion of cash and cash equivalent and short-term debt of BRL16.4
billion (mostly trade finance debt). Also, JBS USA had USD1
billion fully committed available lines.


Fitch has downgraded the following ratings:

-- Long-Term Foreign & Local Currency IDR to 'BB-' from 'BB';
-- National Scale rating to 'A (bra)' from 'AA(bra)'.

-- Long-Term Foreign and Local Currency IDR to 'BB-' from 'BB';
-- Notes due 2020, 2021 to 'BB-' from 'BB'.

JBS USA Finance, Inc:
-- Notes due 2020, 2021 to 'BB-' from 'BB'.
JBS Investment GmbH:

-- Notes due 2020, 2023, 2024 to 'BB-' from 'BB'.

The ratings remain on Rating Watch Negative.

ODEBRECHT OFFSHORE: Moody's Withdraws Ca $1.69BB Sr. Notes Rating
Moody's Investors Service has withdrawn the senior secured ratings
assigned to debt issues of Odebrecht Offshore Drilling Finance
Limited (OODFL) and Odebrecht Drilling Norbe VIII/IX Finance Ltd
(Norbe VIII/IX), following the commencement of Chapter 15
proceedings under the U.S. Bankruptcy Code in the Bankruptcy Court
for the Southern District of New York on November 3, 2017.

Moody's has withdrawn the following ratings:

Issuer: Odebrecht Offshore Drilling Finance Limited (OODFL)

- 6.75% $1.69 billion senior secured notes due 2022, Ca

- 6.625% $580 million senior secured notes due 2022, Ca

Issuer: Odebrecht Drilling Norbe VIII/IX Finance Ltd (Norbe

- 6.35% $1.5 billion senior secured notes due 2021, Caa3

Outlook: Negative


The Ca rating for OODFL's 22 notes reflected Moody's expectation
that the recovery rate for senior secured lenders will be in the
35% to 65% range, while the Caa3 rating for Norbe VIII/IX's 21
notes reflected Moody's expectations of a 20% to 35% recovery. The
negative outlook reflected the still weak oil price environment
and the vessels' high re-contracting risk.

With Chapter 15, Odebrecht Oil and Gas (OOG, unrated) is seeking,
among other matters, to recognize an extrajudicial reorganization
proceeding in Brazil as foreign main proceeding and to give full
force and effect to the Brazilian pre-packaged plan of
reorganization in the United States. On May 23, 2017, OOG
announced that the company and some of its subsidiaries had
entered into an agreement with a group of creditors to restructure
their financial debt. On October 19, 2017, the Court of the State
of Rio de Janeiro in Brazil approved the reorganization plan. As a
result, the current 2022 and 2021 notes, secured by the drilling
units owned by OOG's subsidiaries will be exchanged for new notes
with revised terms.

Norbe VIII/IX is a wholly-owned subsidiary of OOG, organized as a
limited liability company under the laws of the Cayman Islands for
the purpose of a $1.5 billion infrastructure bond issuance,
secured by the Norbe VIII and Norbe IX 6th generation drilling
vessels and future flow of its receivables stemming from the
charter and services agreements with Petrobras.

OODFL is also organized under the laws of the Cayman Islands,
indirectly owned by OOG for the purpose of infrastructure bond
issuances secured by two drillships ODN I and ODN II and
semisubmersible rig, Norbe VI and future flow of its receivables
stemming from the charter and services agreements with Petrobras.
In February 2014 OODFL completed an additional $580 million note
offering, adding asset ODN Tay IV, a semisubmersible rig to the
collateral package, but its charter and service contract with
Petrobras has been cancelled without a replacement since September

D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: CCP Heightens Fight Against Smuggling
Dominican Today reports that the VI Regional Meeting of the
Container Control Program (CCP) for Latin America and the
Caribbean began Nov. 21, aimed at exchanging ideas and strategies
to reduce contraband.

The meeting which gathers representatives from 14 countries and
concludes Nov. 24, starts with statistics from the regional body
itself, which accounted for the confiscation of 130 metric tons of
cocaine in containers worldwide from 2014 to 2016, according to
Dominican Today.

The same data reveal that in the same period, 4.4 metric tons of
heroin, 65 metric tons of marihuana and 1,372 metric tons of
different chemical products were seized, the report notes.

The Dominican Republic has been a member of the CCP since 2013 and
operates the program in the ports at Caucedo and Haina, the report

As reported in the Troubled Company Reporter-Latin America on
Nov. 20, 2017, Fitch Ratings has affirmed Dominican Republic's
Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB-'
with a Stable Outlook.


DANPER TRUJILLO: Receives $20.7MM IDB Financing to Up Production
IDB Invest, the private sector institution of the Inter-American
Development Bank (IDB) Group, has signed a loan of $20.7 million
to finance the Peruvian company Danper Trujillo.  The loan will
increase its agricultural production, implement cutting-edge
technology in its industrial processes with an emphasis on
achieving efficiencies in water and energy use, as well as develop
two fruit processing plants for export.

The increase in production that Danper Trujillo will carry out
with IDB Invest financing will be achieved sustainably by using
optimal agricultural practices and cutting-edge drip irrigation
systems, minimizing water consumption and the application of
fertilizers.  Danper Trujillo is the only Peruvian company in the
sector that is working on the sustainable management of the water
basin where it operates, and today it is the only Peruvian company
that is certified by the Alliance for Water Stewardship Award

This is the second operation carried out by IDB Invest with this
company, whom it considers a strategic partner in the Peruvian
agribusiness sector for its commitment in its operations to
environmental, social and gender equity sustainability.

IDB Invest financing will also strengthen the local value chain by
integrating 132 small and medium-sized farmers into their raw
material supply system. These farmers will receive technical
training and related resources.  Additionally, it is expected that
some 5,040 new jobs will be created in the next three years,
mainly in areas with high poverty rates and high unemployment
rates, both permanent and seasonal, and of which 2,690 will go to

Danper Trujillo is one of the clients that has received technical
advisory from IDB Invest to obtain the international gender
certification EDGE, an evaluation methodology measuring gender
equity within companies.

IDB Invest's financing will continue contributing to strengthen
Peru's non-traditional agricultural sector, which increasingly
generates more local employment and more income, especially
through exports. This financing is an example of IDB Invest's
commitment to Peru as well as to the agribusiness sector in the

* PERU: Filled With Opportunities for Spanish Firms, Minister Says
EFE News reports that Peru is "full" of opportunities for Spanish
businesses, particularly in the areas of infrastructure and the
development of "strategic projects" in a country with which Spain
enjoys "close and fluid relations," the European nation's
development minister, Inigo de la Serna, said.

In an interview with EFE in Lima, at the start of an official tour
of Peru and Colombia oriented towards strengthening the
"institutional contact" with both countries and dealing with
Spanish firms operating there, the minister emphasized Madrid's
desire to continue deepening an already close relationship and
offering all sorts of possibilities to Spanish companies to
contribute to the development of the Andean nation.

P U E R T O    R I C O

BAILEY'S EXPRESS: Sale of 23 Trucks to Toria for $145K Approved
Judge Ann M. Nevis of the U.S. Bankruptcy Court for the District
of Connecticut authorized Bailey's Express, Inc.'s sale of 23
trucks to Toria Truck Rental & Leasing, Inc. for $145,000.

The Sale Hearing was held on Nov. 15, 2017.

The Trucks will be transferred to the Purchaser free and clear of
all encumbrances, claims, interests, and liens.

The Purchaser is a Covered Entity or will become a Covered Entity
and all personally identifiable information will be transferred in
compliance with The Health Insurance Portability and
Accountability Act of 1996, resulting in no need for the
appointment of the Consumer Privacy Ombudsman and no requirement
that the Debtor comply with Fed. R. Bankr. P. 6004(g).

Notwithstanding the provisions of Bankruptcy Rules 6004(h),
6006(d) or 7062 or any applicable provisions  of the  Local
Bankruptcy Rules, the Sale Order will not be stayed after its
entry, but will be effective and enforceable immediately  upon
entry, and the 14-day stay provided in Bankruptcy Rules 6004(h)
and 6006(d) is expressly waived and will not apply.

The Debtor is authorized and directed to pay Bayshore Ford Truck
Sales, LLC the amount of $8,100, representing the total of the
Break-Up Fee ($4,350) and Expense Reimbursement ($3,750).  It is
authorized and directed to return the deposit of Bayshore Ford
Truck  Sales, LLC in the amount of $14,500, delivered in
accordance with the Bidding Procedures Order.

A copy of the Purchase Agreement attached to the Order is
for free at:

The Purchaser:

          Edward Michaels
          1005 New Britain Avenue
          West Hartford, CT 06110
          Telephone: (860) 241-0400

                    About Bailey's Express

Headquartered in Middletown, Connecticut, Bailey's Express -- is a Connecticut-based less than
truckload carrier.  It provides service across the nation and is
dedicated in helping Connecticut, Massachusetts and Rhode Island
companies market their products throughout the U.S. including
Hawaii and Alaska.  It has distribution points in Charlotte,
Dallas, Denver, Easton, Fontana, Indianapolis, Jacksonville,
Memphis, Neenah, Phoenix, Salt Lake City and Toledo.  It also
provides service to Mexico, Puerto Rico & Canada.

Bailey's Express filed for Chapter 11 bankruptcy protection
(Bankr. D. Conn. Case No. 17-31042) on July 13, 2017, estimating
its assets and liabilities at between $1 million and $10 million.
The petition was signed by David Allen, chief financial officer.

Judge Ann M. Nevins presides over the case.

Elizabeth J. Austin, Esq., and Jessica Grossarth Kennedy, Esq., at
Pullman & Comley, LLC, serves as the Debtor's bankruptcy counsel.

No creditors' committee has yet been appointed in the case.


VENEZUELA: Pumps Below OPEC Target
Aljazeera News reports that as Venezuela's energy sector struggles
to pump enough crude oil to meet the country's OPEC output target,
rival producers have started to plug the gap, according to OPEC
and industry sources and US government data.

The South American country's oil output hit a 28-year low in
October as state-owned oil giant PDVSA struggled to find the funds
to drill wells, maintain oilfields and keep pipelines and ports
working, according to Aljazeera News.

Venezuela's oil production, which has been falling by about 20,000
barrels per day (bpd) a month since last year, is on track to fall
by at least 250,000 bpd in 2017, according to numbers reported to
the Organization of the Petroleum Exporting Countries (OPEC), as
US sanctions and a lack of capital hobble operations, the report

Some OPEC members expect the fall to accelerate in 2018, reaching
at least 300,000 bpd, OPEC sources said, Aljazeera News relays.
At a recent internal OPEC meeting, Venezuelan officials were asked
to give a clearer picture of the country's declining output, the
report discloses.

"A lot of questions have been raised by Saudis and others to the
Venezuelans to present a real picture on the production status and
decline," one of the sources said, Aljazeera News relays.

The topic could come up later this month at the group's next
meeting, the report discloses.

Aljazeera News relates that Saudi Arabia will not raise its output
to compensate for this decline as OPEC's defector leader is
focused on reducing global oil stocks, one OPEC source familiar
with Saudi oil policy told Reuters this month.

But heavy oil from OPEC member Iraq and non-OPEC producers Canada
and Brazil are already replacing Venezuelan barrels to key
customers the United States and India, according to the sources
and Thomson Reuters data, the report relays.  The Iraq shipments
remain within OPEC targets.

Iraq has increased shipments of crude and condensate to India by
80,000 bpd this year as Venezuelan deliveries fell by 84,000 bpd,
Aljazeera News notes.

The second-largest OPEC producer also has exported 201,000 bpd
more oil to the US this year through October as Venezuelan
shipments dropped about 90,000 bpd, according to the Reuters data,
Aljazeera News relays.

Venezuela's weaker output "could be good for market rebalance and
we could see price stay at $60 for a slightly longer time," one
OPEC source said, the report notes.  "That doesn't mean there will
be no free riders," the source added, the report relays.

                          Plugging The Gap

Venezuela pumped 1.863 million bpd in October, undershooting its
OPEC target by 109,000 bpd, according to an assessment that OPEC
uses to monitor members' output, Aljazeera News notes.  Venezuela
said it had pumped 1.955 million bpd, still below its output
target of 1.972 million bpd, the report relates.

There often are discrepancies between the assessment and official
figures reported by the OPEC members, Aljazeera News notes.

When member countries have suffered supply disruptions in the
past, other OPEC members have covered the gap, often without
changing official production quotas, Aljazeera News says.

Saudi Arabia boosted its output in 2003 to offset Iraq's falling
exports after the US invasion, but the agreement was never
formally disclosed, the report discloses.

OPEC discussions of Venezuela's quota is not new, the report
notes.  Proposals to change the country's quota have been raised
and batted down several times in OPEC meetings since the South
American country's production started declining in 2012, a
Venezuelan government source said, Aljazeera News relays.

Venezuela has argued in the past, when faced with questions about
falling output, that it was working to reverse declines from its
sizeable proven oil reserves, the report notes.

But it could be difficult for Venezuelan officials to convince
OPEC that an upturn is likely in the near future as the country
seeks to restructure $60 billion in debt, the report discloses.
Dependent on oil revenues, Venezuela has seen its economy contract
sharply in the three years since crude prices collapsed from over
$100 a barrel, Aljazeera News relays.

Aljazeera News notes that reviews of quotas and reallocation of
market share can be contentious, and the group may prefer to allow
market forces to fill the supply gap left by Venezuela's decline
rather than make an official share revision and reallocation to
other members, one senior OPEC source said.  A formal change would
be opening a "can of worms" that OPEC would not want to do, the
source added, the report relays.

OPEC's oil ministers will meet in Vienna later this month to
discuss supply policy, the report relays.  The group is expected
to extend beyond March an agreement under which its members and
rival producers, including Russia, have reduced joint output by
about 1.8 million bpd, the report notes.

"We want a successful meeting on November 30, re-discussing quotas
will not be accepted by Venezuela and talking about it at the
meeting will just open the door for others to do the same," the
senior OPEC source said, the report adds.

                           *   *   *

As reported in the Troubled Company Reporter-Latin America, Robin
Wigglesworth at The Financial Times related that Venezuela
appeared to have made a crucial bond repayment in late October.
The Latin American country and its state oil company PDVSA have
failed to make several debt payments in recent weeks, the report
noted. But the most important one was an $842 million instalment
due Oct. 29 on a PDVSA bond maturing in 2020, which, unlike most
of the other overdue debts, had no 'grace period' that allowed for
30 days to clean up any arrears without triggering a default, the
report notes.

As reported in the Troubled Company Reporter-Latin America on
Nov. 16, 2017, On Nov. 13, 2017, S&P Global Ratings lowered its
long- and short-term foreign currency sovereign credit ratings on
the Bolivarian Republic of Venezuela to 'SD/D' from 'CC/C'. The
long- and short-term local currency sovereign credit ratings
remain at 'CCC-/C' and are still on CreditWatch with negative
implications. S&P said, "At the same time, we lowered our issue
ratings on Venezuela's global bonds due 2019 and 2024 to 'D' from
'CC'. Our issue ratings on the remainder of Venezuela's foreign
currency senior unsecured debt remain at 'CC'. Finally, we
affirmed our transfer and convertibility assessment on the
sovereign at 'CC'."


Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades.  Prices
for actual trades are probably different.  Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind.  It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.

Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

Submissions about insolvency-related conferences are encouraged.
Send announcements to


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

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

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000 or Joseph Cardillo at

                   * * * End of Transmission * * *