/raid1/www/Hosts/bankrupt/TCRLA

/raid1/www/Hosts/bankrupt/TCRLA_Public/171211.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, December 11, 2017, Vol. 18, No. 245 Headlines A R G E N T I N A AVAL RURAL XXVI: Moody's Ups VRDA/VRDB Debt Securities to B1 BANCO MACRO: Moody's Hikes Senior Unsecured Debt Rating to B2 CONSULTATIO INCOME: Moody's Cuts GS Bond Fund Rating to B-bf GALILEO INCOME: Moody's Cuts GS Bond fund Rating to 'B-bf' JOHN DEERE: Moody's Puts 'B1' GS FC Rating on $40MM Debt Issuance PAMPA ENERGIA: S&P Affirms 'B+' Corp Credit & Issue-Level Ratings PVCRED SERIE XXXV: Moody's Puts Ca Global Scale Rating to Certs. TINUVIEL SERIE XXIV: Moody's Puts Ca Global Scale Rating to Certs. YPF S A: S&P Rates Proposed $500MM Senior Unsecured Notes 'B+' B R A Z I L PETROBRAS: Seeks Inclusion on Market Transparent-Company List PETROBRAS: Receives New $204.4MM Reimbursement for Losses M E X I C O BANCO DEL BAJIO: Moody's Affirms ba1 Baseline Credit Assessment FINANCIERA INDEPENDENCIA: S&P Affirms 'BB-' LT Global Scale ICR GRUPO KALTEX: Fitch Lowers Long-Term IDR to B; On Watch Negative MEXICO: Opens Power-Line Sector to Private Firms V E N E Z U E L A VENEZUELA: Says More Than $3 Billion Frozen due to Sanctions X X X X X X X X X * BOND PRICING: For the Week From December 4 to Dec. 8, 2017 - - - - - ================= A R G E N T I N A ================= AVAL RURAL XXVI: Moody's Ups VRDA/VRDB Debt Securities to B1 ------------------------------------------------------------ Moody's Latin America Agente de Calificacion de Riesgo has taken rating actions on the Global Scale (GSR) and Argentine National Scale (NSR) of several Argentine securitizations following Moody's November 29, 2017 upgrade of the Argentine government's bond rating to B2 (stable outlook) from B3 (positive outlook); and Argentina's local currency country ceiling to Ba2 from Ba3. The improvement in Argentina's credit profile as captured in the rating upgrade has direct implications for the ratings of Argentine securitizations, given that it also expresses a decrease of systemic risks for all local credits. RATINGS RATIONALE Consumer Loan Securitizations Moody's upgraded the Ba3 (sf) rating of several consumer loan securitizations to Ba2 (sf) as their credit profiles were formerly constrained by Argentina's previous local currency country ceiling at Ba3. Moody's upgraded other senior, mezzanine and equity tranches based on the strong performance of the securitized pools and the upgrade of relevant counterparties such as servicers and providers of external credit enhancements. The local currency country ceiling for bonds summarizes the general country-level risks (excluding foreign-currency transfer risk) that should be taken into account in assigning local currency ratings to locally domiciled obligors or locally originated structured transactions. They indicate the rating level that will generally be assigned to the financially strongest obligations in the country. The country ceiling for local currency bonds and notes is expressed on the long-term global scale. Fideicomiso Financiero Aval Rural XXVI The rated securities are backed by a pool of bills of exchange signed by agricultural producers in Argentina. The bills of exchange are guaranteed by Aval Rural S.G.R. (Aval Rural), which is a financial guarantor in Argentina. Following the upgrade of Aval Rural to B1 from B2 in the GSR and to Aa3.ar from A2.ar in the NSR, Moody's has upgraded the VRDA and the VRDB debt securities of Fideicomiso Financiero Aval Rural XXVI to B1 (sf) from B2 (sf) in the GSR and to Aa3.ar (sf) from A2.ar (sf) in the NSR. Fideicomiso Financiero Transportes Rosario The transaction is a securitization of future receivables related to the utilization of the public bus transportation system in the City of Rosario, Argentina. The revenues will be generated by Empresa Mixta de Transporte de Rosario SA ("EMTRSA", NR) and "Sociedad del Estado Municipal para el Transporte Urbano de Rosario" ("SEMTUR", NR), which are two public bus companies operating in the City of Rosario. EMTRSA and SEMTUR are wholly- owned companies of the Municipality of Rosario ("Municipality of Rosario" or "Rosario", NR). This transaction has high dependence to the Municipality of Rosario, one of the main urban districs of the country. Following the improvement in Argentina's credit profile, Moody's has taken the following actions: (i) to upgrade the VDF A of Fideicomiso Financiero Transportes Rosario to B2 (sf) from B3 (sf) in the GSR, and to A2.ar (sf) from Baa2.ar (sf); (ii) to upgrade the VDF B of Fideicomiso Financiero Transportes Rosario to B2 (sf) from B3 (sf) in the GSR and to A3.ar (sf) from Baa3.ar (sf). Factors that would lead to an upgrade or downgrade of the ratings: Further changes to Argentina's country ceilings may have an impact on the ratings of securitizations backed by consumer, lease and vehicle loans. A rating change in the sub-sovereign or entities that provide a guaranty or external credit enhancement to the securitizations would lead to a rating change of the securitizations. A list of the Affected Ratings is available at: http://bit.ly/2BGS1is This list is an integral part of this Press Release and provides, for each of the credit ratings covered, Moody's disclosures on the following items: - Principal Methodologies - National Scale Ratings BANCO MACRO: Moody's Hikes Senior Unsecured Debt Rating to B2 ------------------------------------------------------------- Moody's Investors Service has upgraded Banco Macro S.A., Banco Hipotecario S.A., Banco Supervielle S.A. and Tarjeta Naranja S.A.'s senior unsecured debt ratings, as well as Tarjeta Naranja's corporate family rating, to B2 from B3, and Banco de Galicia y Buenos Aires S.A. senior unsecured debt program to (P)B2 from (P)B3. Moody's also upgraded to B3 from Caa1 the foreign currency subordinated debt ratings assigned to Banco Macro and Banco de Galicia y Buenos Aires. These actions followed the announcement made by Moody's Latin America Agente de Calificaci¢n de Riesgo S.A. (MLA) that it has taken a similar action on the banks' local currency deposit ratings (see press release "Moody's Latin America upgrades ratings of multiple Argentine banks, finance companies, MATtba and Grupo Supervielle; outlook changed to stable"). The rating action also followed Moody's decision on November 29, 2017 to upgrade to B2 the government bond rating of Argentina. The outlook on all ratings has been revised to stable, in line with the outlook on Argentina's sovereign rating. The following debt ratings of Banco Macro S.A. were upgraded: -- Global Local Currency Senior Unsecured MTN Rating : to (P)B2 from (P)B3 -- Global Foreign Currency Senior Unsecured MTN Rating : to (P)B2 from (P)B3 -- Global Foreign Currency Subordinated Debt Rating : to B3 from Caa1 -- Global Foreign Currency Senior Unsecured Debt Rating : to B2 from B3; stable outlook The following debt ratings of Banco de Galicia y Buenos Aires S.A. were upgraded: -- Global Local Currency Senior Unsecured MTN Rating : to (P)B2 from (P)B3 -- Global Foreign Currency Senior Unsecured MTN Rating : to (P)B2 from (P)B3 -- Global Foreign Currency Subordinated Debt Rating : to B3 from Caa1 The following debt ratings of Banco Hipotecario S.A. were upgraded: -- Global Local Currency Senior Unsecured Debt Rating : to B2 from B3; stable outlook -- Global Foreign Currency Senior Unsecured Debt Rating : to B2 from B3; stable outlook The following debt ratings of Banco Supervielle S.A. were upgraded: -- Global Local Currency Senior Unsecured MTN Rating : to (P)B2 from (P)B3 -- Global Foreign Currency Senior Unsecured MTN Rating : to (P)B2 from (P)B3 -- Global Local Currency Senior Unsecured Debt Rating : to B2 from B3; stable outlook The following ratings of Tarjeta Naranja S.A. were upgraded: -- Global Local Currency Senior Unsecured Debt Rating: to B2 from B3; stable outlook -- Long-Term Corporate Family Rating: to B2 from B3; stable outlook -- Outlook, Changed To Stable From Positive RATINGS RATIONALE These rating actions on Argentine financial institutions follow the upgrade of Argentina's sovereign bond rating, which was driven by the record of macroeconomic reforms passed under Macri administration that are beginning to address long existing economic distortions in Argentina and the likelihood that the reforms will continue, sustaining the recent return to economic growth. The sovereign's stable outlook balances recent improvements to the economy and the country's policymaking with still high fiscal deficits that are mostly funded in foreign currency and growing external imbalances. ARGENTINA MACRO PROFILE CHANGED TO WEAK+ FROM WEAK - The improvement in Argentina's macro profile reflects an improvement in its increased institutional strength and a reduction in its susceptibility to political event risk. Somewhat stronger, though still relatively weak, institutions have improved as a result of Argentina's policy adjustments since 2015 including the increased independence of central bank, the publication of more credible public statistics, the implementation of a free- floating exchange rate, the opening of the capital account, and multi-year inflation targeting. Meanwhile, the recent victory of the President's party in Argentina's mid-term elections, in which it took 42% of the vote and became the largest party in lower House of Congress, indicates strong political support for the President's agenda, reflecting the country's reduced vulnerability to political event risk and supporting Moody's expectation that reforms will continue. The reforms aim to bolster the economic recovery by promoting increased private investment while continuing the process of macroeconomic stabilization. UPGRADE OF FINANCIAL INSTITUTIONS' RATINGS The upgrades reflect the improved operating environment in Argentina coupled with the relatively strong credit fundamentals of the affected companies, the ratings of all of which were constrained by that of the sovereign given their strong credit inter-linkages. The improved operating environment will support stable asset quality and greater loan demand, helping to offset the effects of margin compression driven by falling interest rates and tight competition. WHAT COULD CHANGE THE RATING -- UP OR DOWN As the affected companies standalone ratings assessments are constrained by the sovereign, additional upward ratings pressure will depend upon further improvement Argentina's government bond rating. Similarly, the ratings would face downwards ratings pressure if the sovereign rating were lowered. The ratings could also be negatively affected if the issuers suffer a substantial deterioration in asset quality, earnings, and/or capitalization. The principal methodology used in rating Banco de Galicia y Buenos Aires S.A., Banco Hipotecario S.A., Banco Macro S.A., and Banco Supervielle S.A. was Banks published in September 2017. The principal methodology used in rating Tarjeta Naranja S.A. was Finance Companies published in December 2016. CONSULTATIO INCOME: Moody's Cuts GS Bond Fund Rating to B-bf ------------------------------------------------------------ Moody's Latin America Agente de Calificacion de Riesgo downgraded bond fund ratings to Consultatio Income fund managed by Consultatio AM G.F.C.I.S.A.. The new global scale and national scale ratings assigned are: Consultatio Income FCI * Global scale rating to B-bf from Ba-bf * National scale ratings to Aa-bf.ar from Aaa-bf.ar RATING RATIONALE Moody's stated that new B-bf global scale bond fund rating primarily reflects an ongoing change in investment strategy that has negatively impacted its maturity-adjusted credit quality profile. The fund has invested largely in Sovereign and Sub- sovereign bonds denominated in dollars which credit quality is similar to new global scale assigned. Additionally the bond NSRs was downgraded to Aa-bf.ar from Aaa-bf.ar to reflect a national scale mapping that is more consistent with it new global scale credit profiles. Consultatio AM GFCISA is among the largest asset managers in the Argentinian mutual fund industry. As of October 2017, Consultatio Asset Management GFCISA, among the eldest fund advisors in the local market, had assets under management (AUM) of approximately ARS 17.3 billion (approximately $1.0 billion) and occupied the 10th position with 3.2% market share in AUM terms. The principal methodology used in this rating was Moody's Bond Fund Rating Methodology dated May 2013. Other methodologies and factors that may have been considered in the process of rating this fund can also be found in the Rating Methodologies on Moody's website. Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". While NSRs have no inherent absolute meaning in terms of default risk or expected loss, a historical probability of default consistent with a given NSR can be inferred from the GSR to which it maps back at that particular point in time. For information on the historical default rates associated with different global scale rating categories over different investment horizons. GALILEO INCOME: Moody's Cuts GS Bond fund Rating to 'B-bf' ---------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo downgraded bond fund ratings to Galileo Income fund managed by Galileo Argentina SGFCI. The new global scale and national scale ratings assigned are: Galileo Income FCI * Global scale rating to B-bf from Ba-bf * National scale ratings to Aa-bf.ar from Aaa-bf.ar RATINGS RATIONALE Moody's stated that new B-bf global scale bond fund rating primarily reflects an ongoing change in investment strategy that has negatively impacted its maturity-adjusted credit quality profile. The fund has invested largely in Tbills denominated in dollars which credit quality is similar to new global scale assigned. Additionally the bond NSRs were downgraded to Aa-bf.ar from Aaa-bf.ar to reflect a national scale mapping that is more consistent with it new global scale credit profiles. Galileo Argentina SGFISA, part of a well-known local and independent mid-sized asset manager in the Argentinean mutual fund Industry with a market share of 1.0%. As of October 2017, and managed approximately ARS 5,876 million in assets. The principal methodology used in this rating was Moody's Bond Fund Rating Methodology dated May 2013. Other methodologies and factors that may have been considered in the process of rating this fund can also be found in the Rating Methodologies on Moody's website. Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". While NSRs have no inherent absolute meaning in terms of default risk or expected loss, a historical probability of default consistent with a given NSR can be inferred from the GSR to which it maps back at that particular point in time. For information on the historical default rates associated with different global scale rating categories over different investment horizons. JOHN DEERE: Moody's Puts 'B1' GS FC Rating on $40MM Debt Issuance ----------------------------------------------------------------- Moody's Latin America Agente de Calificacion de Riesgo (MLA) has assigned a B1 global scale and an Aa2.ar national scale foreign currency debt rating to John Deere Credit Compania Financiera S.A.(JDC)'s Class fourteen and fifteen senior debt issuances. The issuances, each one for up to $40 million, will be due in 36 and 48 months respectively. The total combined amount of both issuances cannot exceed the total amount of the program up to AR$3.500 million. The outlook on the ratings is stable. The following ratings were assigned to JDC's Class XIV and XV senior unsecured debt issuance: B1 Global Foreign Currency Debt Rating Aa2.ar Argentina National Scale Foreign Currency Debt Rating RATINGS RATIONALE JDC's ratings (GSR) capture the very high probability that JDC will receive support from its foreign-owned parent, John Deere Credit Inc, rated (P)A2 with negative outlook, in an event of stress. The ratings also consider JDC's strong asset quality, which helps counterbalance its weak capitalization. Profitability is moderate by Argentine standards, and liquidity is adequate. Moody's assessment of a very high probability of parental support considers JDC's key role as the financial agent for John Deere Credit Inc. and its strong commercial and strategic importance to the corporation. The company's strong asset risk profile is reflected in a very low non-performing loan ratio of just 0.33% as of June 2017 and the fact that its lending book is highly collateralized. Net income was equal to a seemingly robust 2.19% of average managed assets as of June 2017. However, this figure is distorted by Argentina's still high rate of inflation and Moody's expects earnings will narrow as inflation continues to decline, even if business opportunities increase. The rating also considers JDC's tight capital base, with tangible common equity equal to just 5.2% of total managed assets as of June 2017, which leaves it limited loss absorption capacity should delinquencies unexpectedly rise. In addition, the company exhibits a high reliance on market funds, as is typical of captive finance companies, which expose it to swings in interest rates and refinancing risk. The reliance on market funds, most of which are relatively short-term, is reflected in modest liquidity, with liquid assets equal to just 56% of debt maturities over the coming 24 months. However, these risks are partially mitigated by credit facilities available from the company's parent in an event of stress, as well as long term financing provided by John Deere & Co's local subsidiary, Industrias John Deere Argentina. The ratings also consider Argentina's operating environment, which while improving has historically been very volatile. In this vein, the global senior unsecured foreign currency debt rating is constrained by Argentina's B1 foreign currency bond ceiling. Reflecting this constraint, the Aa2.ar national scale rating assigned to the notes is the highest national scale rating corresponding to a global scale rating of B1. The stable outlook on JDC's ratings is aligned with the stable outlook on Argentina's government bond rating. WHAT COULD CHANGE THE RATING UP/DOWN As the global scale rating is constrained by the sovereign foreign currency bond ceiling, an upgrade of Argentina's sovereign bond rating would put upward pressure on the global scale rating though the NSR is less likely to be affected given the possibility that the correspondence between Argentine NSRs and GSRs could be recalibrated if and when the sovereign is upgraded. Conversely, a downgrade of the Argentine sovereign could put downward pressure on the entity's GSR, but again the NSR is less likely to be affected given the possibility that the correspondence between Argentine NSRs and GSRs could be recalibrated if and when the sovereign is downgraded. In addition, further erosion of the entity's capital base or liquidity, a deterioration of profitability, and/or a significant increase in its asset risk profile could put downward pressure on both the global and national scale ratings, as would an indication of decreased willingness to provide support from the company's parent. The principal methodology used in these ratings was Banks published in September 2017. Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". While NSRs have no inherent absolute meaning in terms of default risk or expected loss, a historical probability of default consistent with a given NSR can be inferred from the GSR to which it maps back at that particular point in time. For information on the historical default rates associated with different global scale rating categories over different investment horizons. PAMPA ENERGIA: S&P Affirms 'B+' Corp Credit & Issue-Level Ratings ----------------------------------------------------------------- S&P Global Ratings affirmed its 'B+' corporate credit rating on Pampa Energia S.A. (Pampa), as well as the 'B+' issue-level rating on its 2022 notes. S&P said, "We rate Pampa's senior unsecured bonds at the same level as the corporate credit rating because priority liabilities represent only about 25% of Pampa's total financial liabilities, and thus we believe there is no relevant potential subordination for unsecured creditors. The outlook remains stable." S&P said, "We believe Pampa's standalone credit quality has strengthened. The company rapidly deleveraged following the acquisition of Petrobras Argentina's operations. For the first time in a long time, Pampa has higher predictability regarding prices, tariffs, and rules underlying its operations, which provides a more comfortable position for planning internal or external growth and sustainable reinvestment in the asset base. In this context, we expect the company to continue growing its asset base, strengthening its business model, and maintaining low leverage levels for the current rating. However, the ratings also reflect our view that the sovereign limits Pampa's credit quality, considering the dependence of the energy sector on the regulatory framework and on government support or intervention, and our belief that in a hypothetical sovereign default scenario, high inflation, sharp devaluation, and overall economic conditions would undermine Pampa's financial flexibility." PVCRED SERIE XXXV: Moody's Puts Ca Global Scale Rating to Certs. ---------------------------------------------------------------- Moody's Latin America (Moody's) has taken rating actions on the Global Scale (GSR) and Argentine National Scale (NSR) of Fideicomiso Financiero Pvcred Serie XXXV, a securitization of personal loans in Argentina, following Moody's November 29, 2017 upgrade of the Argentine government's bond rating to B2 (stable outlook) from B3 (positive outlook); and Argentina's local currency country ceiling to Ba2 from Ba3. The improvement in Argentina's credit profile as captured in the rating upgrade has direct implications for the ratings of Argentine securitizations, given that it also expresses a decrease of systemic risks for all local credits. 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. Moody's has withdrawn the ratings of the VRDA, VRDB and the Certificates because the securities for this transaction have not yet been placed in the market. Please refer to the Moody's Investors Service's Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com.ar. Moody's has assigned new ratings to these tranches. - VRDA: Aaa.ar (sf) (national scale) and Ba2 (sf) (global scale) - VRDB: Caa1.ar (sf) (national scale) and Caa3 (sf) (global scale) - CP: Ca.ar (sf) (national scale) and Ca (sf) (global scale) RATINGS RATIONALE Moody's has taken actions on the securities mainly based on the following factors: (i) the upgrade to Ba2 from Ba3 of the Argentine country ceiling in local currency; (ii) the upgrade of relevant counterparties such as servicers and providers of external credit enhancements. The local currency country ceiling for bonds summarizes the general country-level risks (excluding foreign-currency transfer risk) that should be taken into account in assigning local currency ratings to locally domiciled obligors or locally originated structured transactions. They indicate the rating level that will generally be assigned to the financially strongest obligations in the country. The country ceiling for local currency bonds and notes is expressed on the long-term global scale. Factors that would lead to an upgrade or downgrade of the ratings: Further changes to Argentina's country ceilings may have an impact on the ratings of securitizations backed by consumer, lease and vehicle loans. A rating change in the sub-sovereign or entities that provide a guaranty or external credit enhancement to the securitizations would lead to a rating change of the securitizations. The principal methodology used in these ratings was "Moody's Approach to Rating Consumer Loan-Backed ABS" published in September 2015. Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". While NSRs have no inherent absolute meaning in terms of default risk or expected loss, a historical probability of default consistent with a given NSR can be inferred from the GSR to which it maps back at that particular point in time. For information on the historical default rates associated with different global scale rating categories over different investment horizons. TINUVIEL SERIE XXIV: Moody's Puts Ca Global Scale Rating to Certs. ------------------------------------------------------------------ Moody's Latin America has taken rating actions on the Global Scale (GSR) and Argentine National Scale (NSR) of Fideicomiso Financiero Tinuviel Serie XXIV, a securitization of personal loans in Argentina, following Moody's November 29, 2017 upgrade of the Argentine government's bond rating to B2 (stable outlook) from B3 (positive outlook); and Argentina's local currency country ceiling to Ba2 from Ba3. The improvement in Argentina's credit profile as captured in the rating upgrade has direct implications for the ratings of Argentine securitizations, given that it also expresses a decrease of systemic risks for all local credits. 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. Moody's has withdrawn the ratings of the VDF A, VDF B, VDF C and the Certificates because the securities for this transaction have not yet been placed in the market. Please refer to the Moody's Investors Service's Policy for Withdrawal of Credit Ratings, available on its website, www.moodys.com.ar. Moody's has assigned new ratings to these tranches. - VDF A: Aaa.ar (sf) (national scale) and Ba2 (sf) (global scale) - VDF B: Baa2.ar (sf) (national scale) and B3 (sf) (global scale) - VDF C: Ca.ar (sf) (national scale) and Ca (sf) (global scale) - CP: C.ar (sf) (national scale) and C (sf) (global scale) RATINGS RATIONALE Moody's has taken actions on the securities mainly based on the following factors: (i) the upgrade to Ba2 from Ba3 of the Argentine country ceiling in local currency; (ii) the upgrade of relevant counterparties such as servicers and providers of external credit enhancements. The local currency country ceiling for bonds summarizes the general country-level risks (excluding foreign-currency transfer risk) that should be taken into account in assigning local currency ratings to locally domiciled obligors or locally originated structured transactions. They indicate the rating level that will generally be assigned to the financially strongest obligations in the country. The country ceiling for local currency bonds and notes is expressed on the long-term global scale. Factors that would lead to an upgrade or downgrade of the ratings: Further changes to Argentina's country ceilings may have an impact on the ratings of securitizations backed by consumer, lease and vehicle loans. A rating change in the sub-sovereign or entities that provide a guaranty or external credit enhancement to the securitizations would lead to a rating change of the securitizations. The principal methodology used in these ratings was "Moody's Approach to Rating Consumer Loan-Backed ABS" published in September 2015. Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". While NSRs have no inherent absolute meaning in terms of default risk or expected loss, a historical probability of default consistent with a given NSR can be inferred from the GSR to which it maps back at that particular point in time. For information on the historical default rates associated with different global scale rating categories over different investment horizons. YPF S A: S&P Rates Proposed $500MM Senior Unsecured Notes 'B+' -------------------------------------------------------------- S&P Global Ratings assigned its 'B+' issue-level rating to YPF S.A.'s (B+/Stable/--) proposed $500 million 30-year senior unsecured notes. The issuance amount could be increased to up to $750 million. The rating on the notes is the same as the corporate credit rating on YPF, because S&P doesn't believe there's significant structural subordination given that YPF is an operating holding company, and priority liabilities at the subsidiaries' level represent less than 10% of total adjusted assets. The new issuance will slightly enhance YPF's capital structure and reflects improved liability management amid flattened yield curves. Additionally, the company is proposing an up to $750 million add-on to its $750 million 10- year notes that it issued last July. The company will use proceeds from both transactions primarily to pay for the simultaneous tender offer on its 8.875% senior notes due December 2018. YPF could use any remaining proceeds for additional refinancing or to fund working capital and capital expenditures, which S&P already incorporate in its base-case scenario. S&P said, "Our 'B+' rating on YPF reflects its leading market position as Argentina's largest integrated oil and gas company, offset by exposure to the country's fragile economy and evolving institutional framework, as well as YPF's limited geographic diversification. "Our rating also incorporates our expectation that YPF will maintain a fairly moderate leverage for the current rating level. In line with the company's strategy to focus on financial discipline, efficiency, and reducing capital expenditures, we expect a gradual deleveraging and gross adjusted debt to EBITDA to slip to closer to 2.5x in 2018 from current 2.8x. "Our 'bb-' stand-alone credit profile assessment on YPF is currently above our ratings on Argentina (B+/Stable/B). The sovereign ratings act as a cap on the rating on YPF because of our belief that a hypothetical sovereign default scenario--high inflation, sharp depreciation, and overall weak macroeconomic conditions--would undermine the company's financial flexibility." RATINGS LIST YPF S.A. Corporate credit rating B+/Stable/-- Rating Assigned YPF S.A. Senior unsecured B+ =========== B R A Z I L =========== PETROBRAS: Seeks Inclusion on Market Transparent-Company List ------------------------------------------------------------- EFE News reports that Brazilian state oil company Petroleo Brasileiro S.A. (Petrobras), which is taking a series of anti- corruption steps in the wake of a massive graft scandal, has asked to be included among a group of companies traded on the Sao Paulo Stock Exchange that offer investors a higher level of transparency, its top executive said. The company's chief executive officer, Pedro Parente, said at an event in Rio de Janeiro to unveil the company's measures to combat corruption that Petrobras had announced its decision to adhere to the Sao Paulo Stock Exchange's Grade 2 of corporate governance and would likely migrate to that level in the coming weeks, according to EFE News. As reported in the Troubled Company Reporter-Latin America on Feb. 14, 2017, S&P Global Ratings raised its global scale ratings on Petroleo Brasileiro S.A. (Petrobras) to 'BB-' from 'B+', including its corporate credit rating and the ratings on the senior unsecured notes issued through the company's financing vehicles (Petrobras International Finance Co. and Petrobras Global Finance B.V.). PETROBRAS: Receives New $204.4MM Reimbursement for Losses ---------------------------------------------------------- EFE News reports that Petroleo Brasileiro S.A. (Petrobras) received a new BRL654-million ($204.4-million) reimbursement for losses incurred due to a massive bribes-for-inflated contracts scheme centered on the state oil company. "This is the biggest reimbursement of public funds in Brazil's history resulting from a criminal investigation," said Deltan Dallagnol, coordinator of the team of prosecutors investigating the scheme involving corrupt Petrobras officials, leading Brazilian construction companies and politicians, according to EFE News. The new sum returned brings the total received by Petrobras since the investigation began nearly four years ago to almost BRL1.5 billion (some $461.2 million), the report notes. The report relays that Mr. Dallagnol said the funds had been recovered thanks to plea deals prosecutors have signed with several defendants, who agreed to turn state's evidence and return ill-gotten gains in exchange for sentence reductions. The money reimbursed thus far is around 13 percent of the roughly BRL10.8 billion ($3.4 billion) to be returned pursuant to 163 plea deals with individual defendants and companies implicated in the diversion of funds, Mr. Dallagnol said, the report relays. The so-called Car Wash investigation found that Brazil's largest construction and engineering companies illegally formed a cartel to systematically divvy up Petrobras contracts, overcharge the oil company and bribe corrupt executives at the state-controlled firm over the course of more than a decade, the report says. Extra money was diverted to illegally fund election campaigns and to individual politicians who provided cover for the graft, the probe has shown, the report discloses. Executives of several of Brazil's largest construction companies, numerous former Petrobras officials and politicians accused of taking kickbacks have been imprisoned as a result of the sprawling investigation, the report adds. As reported in the Troubled Company Reporter-Latin America on Feb. 14, 2017, S&P Global Ratings raised its global scale ratings on Petroleo Brasileiro S.A. (Petrobras) to 'BB-' from 'B+', including its corporate credit rating and the ratings on the senior unsecured notes issued through the company's financing vehicles (Petrobras International Finance Co. and Petrobras Global Finance B.V.). =========== M E X I C O =========== BANCO DEL BAJIO: Moody's Affirms ba1 Baseline Credit Assessment --------------------------------------------------------------- Moody's de Mexico has revised the outlook assigned to Banco del Bajio, S.A. to positive, from stable. At the same time, Moody's affirmed all of BanBajio's rating and assessments, including its long-term global local currency deposit ratings of Baa3 and its Mexican National Scale rating of Aa3.mx. The following ratings and assessments were affirmed with a positive outlook: Banco del Bajio, S.A. -- Baseline Credit Assessment of ba1 -- Adjusted Baseline Credit Assessment of ba1 -- Long-term global local currency deposit rating of Baa3, outlook changed to positive, from stable -- Short-term global local currency deposit rating of Prime-3 -- Long-term foreign currency deposit rating of Baa3, outlook changed to positive, from stable -- Short-term foreign currency deposit rating of Prime-3 -- Long-term Mexican National Scale deposit rating of Aa3.mx -- Short-term Mexican National Scale deposit rating of MX-1 -- Long-term Counterparty Risk Assessment of Baa2(cr) -- Short-term Counterparty Risk Assessment of Prime-2(cr) -- Outlook changed to positive from stable RATINGS RATIONALE In revising BanBajio's outlook to positive, Moody's took into consideration the increase in the bank's capitalization levels resulting from its recent initial public offering (IPO) and the improvement in its asset quality supported by its conservative loan origination. The rating action also considers the recent improvement in profitability, which has been driven by its largely stable funding cost in a period of rising interest rates. Following its capital raise in June 2017, BanBajio's tangible common equity (TCE) rose to 15% of its adjusted risk weighted assets (RWAs) from 12.1% as of year-end 2016. Management expects to maintain this level of capitalization going forward. The bank's higher capital ratio compares favorably with its larger Mexican peers. The bank also posted a record low nonperforming loan ratio (NPL) ratio of just 0.9% as of September 2017, a level that it has retained since year-end 2016. The bank's NPL ratio, which was less than half the already low system average of 2.1% as of September 2017, reflects BanBajio's conservative origination practices and the increasing formalization of the type of small and midsized companies (SMEs) that the bank targets, which has enabled the bank to better gage these companies' credit profile. In addition, the bank's geographic footprint has become increasingly diversified across different Mexican states where it has proven to be able to replicate its success; the bank plans to maintain this strategy by continuing an expansion into Mexico's northwestern states. Though it has developed a significant presence in Mexico City, however, it remains most heavily focused on the Bajio region, the economy of which has benefited from manufacturing exports to the U.S., which leaves BanBajio more heavily exposed than other Mexican banks to the potential cancellation of NAFTA. BanBajio's loan book is also relatively well diversified in terms of industries, with no single industry representing more than 100% of tangible common equity (thanks partly to the recent increase in capital). Nevertheless, the bank has higher than average exposures to the industries that would be most affected by the cancellation of NAFTA, such as agriculture at 8% of loans and manufacturing at 11%, as of September 2017. The bank has also benefitted from record-high returns in 2017. While its lending rates rose in line with higher benchmark rates in Mexico, its cost of funding remained relatively stable, a reflection of the strength of the bank's funding mix, notwithstanding its low proportion of retail clients. As such, the bank's net income to tangible assets rose to 1.9% on an annualized basis in the nine months to September 2017, up substantially from 1.2% in calendar year 2016. While returns will continue to benefit from high interest rates in 2018, however, Moody's expects they will eventually revert somewhat closer to historical levels as interest rates begin to come down. WHAT COULD MAKE COULD CHANGE THE RATING UP/DOWN A successful NAFTA renegotiation would reduce asset risks and add upward ratings pressure on the bank's ratings, as would further geographical diversification to regions of the country less dependent on trade with the U.S. An expansion of the bank's lower cost and more stable retail deposit base and further reduction of its exposures to single borrowers and related parties and industries particularly vulnerable to changes in U.S. trade policy would also add upward pressure on the ratings. Given the positive outlook, downward pressures are limited at this time. However, the rating could be stabilized at the current level if NAFTA is terminated, particularly if this results in a significant deterioration in asset quality or profitability. The rating could also be stabilized if the recent gains in the bank's capitalization buffers are reversed. The principal methodology used in these ratings was Banks published in January 2016. The period of time covered in the financial information used to determine Banco del Bajio, S.A.'s rating is between 1 January 2012 and September 30, 2017 (source: Moody's and issuer's financial statements). Moody's National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks. NSRs differ from Moody's global scale credit ratings in that they are not globally comparable with the full universe of Moody's rated entities, but only with NSRs for other rated debt issues and issuers within the same country. NSRs are designated by a ".nn" country modifier signifying the relevant country, as in ".za" for South Africa. For further information on Moody's approach to national scale credit ratings, please refer to Moody's Credit rating Methodology published in May 2016 entitled "Mapping National Scale Ratings from Global Scale Ratings". While NSRs have no inherent absolute meaning in terms of default risk or expected loss, a historical probability of default consistent with a given NSR can be inferred from the GSR to which it maps back at that particular point in time. For information on the historical default rates associated with different global scale rating categories over different investment horizons. FINANCIERA INDEPENDENCIA: S&P Affirms 'BB-' LT Global Scale ICR --------------------------------------------------------------- S&P Global Ratings affirmed its 'BB-' long-term global scale issuer credit rating on Financiera Independencia S.A.B. de C.V. SOFOM E.N.R. (Financiera Independencia). S&P also affirmed its 'mxBBB+/mxA-2' national scale ratings on the firm. The outlook for both scales remains stable. S&P said, "At the same time, we affirmed our 'BB-' issue-level rating on the company's $250 million senior unsecured notes. The rating on its senior unsecured debt incorporates that, as of Sept. 30, 2017, secured debt represented less than 15% of adjusted assets and unencumbered assets completely covered unsecured debt. Consequently, we don't apply notches of subordination to this issuance. "Our issuer credit ratings on Financiera Independencia reflect its stable financial performance, while it maintains sound market share in the microfinance sector, and its geographic diversification. Our projected RAC ratio averages about 9.4% for 2018-2019 and considers the stable internal capital generation with modest credit growth. Financiera Independencia's asset quality metrics have remained stable, but still compare poorly to those of its peers. The ratings also incorporate a stable funding structure that has longer tenures and is diversified between market and credit facilities from commercial and development banks. The company's liquidity position provides adequate cushion under a stress scenario for the next 12 months. The stand-alone credit profile (SACP) remains 'bb-'." GRUPO KALTEX: Fitch Lowers Long-Term IDR to B; On Watch Negative ---------------------------------------------------------------- Fitch Ratings has downgraded Grupo Kaltex, S.A. de C.V. (Grupo Kaltex) Long-Term Local and Foreign Currency Issuer Default Ratings (IDRs) to 'B' from 'B+'. Fitch has also downgraded the company's USD320 million senior secured notes due 2022 to 'B'/'RR4' from 'B+'/'RR4'. All of the aforementioned ratings have been placed on Rating Watch Negative. KEY RATING DRIVERS The ratings downgrade reflects Grupo Kaltex's operational and financial position deterioration during 2017 beyond Fitch's expectations, which has led to a weakening of its credit profile. Such deterioration is the result of a combination of lower sales volume and constant main input cost increases. EBITDA for the latest 12 months at Sept. 30, 2017 was MXN1,367 million, a reduction from MXN2,034 at year-end 2016. This resulted in a Total Adjusted Debt to EBITDAR of 5.5x compared to an expectation of below 4.5x. The Negative Watch reflects Fitch's view of tight liquidity for Grupo Kaltex given the reduction in EBITDA generation, which resulted in an interest coverage below 2x. In addition, the breach of the leverage covenant of total debt-to- EBITDA at or below 4.5x, limits the company's ability to incur in additional debt and could potentially put additional pressure on Grupo Kaltex's liquidity profile. Lower Profitability from Operational and Cost Pressures: During the first nine months of 2017, deficiencies in inventory management, lower sales volumes in the company's different divisions and increased main inputs costs such as cotton, energy, natural gas, fibers and chemicals, decreased Grupo Kaltex's EBITDA generation to MXN712 million from MXN1,379 million reported as of Sept. 30, 2016, as well as the EBITDA margin to 5.7% from 11.0%, respectively. This margin is lower than Fitch's previous expectation of 11.5% in 2017 and 11.1% in 2018. Management has implemented cost cutting and pricing initiatives in order to recover profitability margins; however, the effect on the company's operations is expected to kick in during 2018, for which an EBITDA margin of 7.3% is estimated for 2017 and 8.0% in 2018. Increased Leverage Reduces Flexibility: The company recorded an adjusted leverage level, measured as total adjusted debt for operating leases over EBITDAR of 5.5x during the last-12-months ended on Sept. 30, 2017. Fitch projects that this ratio would reach 5.8x and 5.1x at the end of 2017 and 2018, respectively. These values are higher than Fitch's previous expectation of around 4.5x in 2017 and 4.4x in 2018. Fitch expects that the company's cash balance at year-end 2017 will remain above MXN500 million, as a result of the seasonally high fourth quarter operations and the start of the strategic initiatives to offset operational pressures, which will be sufficient to cover debt service. In addition, management is currently working in asset sales, in the form of available land. Proceeds are intended to be used to reduce debt levels and support operations. In its base case, Fitch is not including these potential cash flows until they are apparent. DERIVATION SUMMARY Kaltex's business position is limited by its ability to transfer cost increases into prices in a rapid manner; this weak pricing power results in higher volatility of cash flows when compared to other peers such as Grupo Posadas, S.A.B. de C.V. (rated 'B'/Outlook Stable), which has a less volatile profile, but is similar to Grupo IDESA, S.A. de C.V. (IDESA) ( 'B-'/Outlook Negative). The company's deteriorated financial metrics pressure its credit profile in the low B category. Kaltex's scale of operation, financial profile, profitability and leverage levels compares unfavorable to denim companies in the 'BB' category, such as Levi Strauss & Co. and L Brands, Inc. KEY ASSUMPTIONS Fitch's key assumptions within the agency's rating case for the issuer include: -- Revenue growth of around 2.5% average over the next three years (2018 to 2020); -- EBITDA margin around 8.5% in average; -- Capex of around MXN450 million per year; -- Capex funded with cash flow from operations; -- Adjusted Debt/EBITDAR levels above 5.0x in the first two years and gradually decreases to around 4.4x in 2020. The recovery analysis assumes that Grupo Kaltex would be considered a going-concern in bankruptcy and that the company would be reorganized rather than liquidated. Fitch has assumed a 10% administrative claim. The going-concern EBITDA estimate reflects Fitch's view of a sustainable, post-reorganization EBITDA level upon which Fitch bases the valuation of the company. Fitch assumes that any potential distress in Grupo Kaltex could occur due to continued inability to offset cost increases and a tougher operating environment within the NAFTA region, resulting in continued erosion of its EBITDA and cash balance. The post- reorganization EBITDA assumption is MXN752 million, which represents close to 55% of discount to the LTM EBITDA as of Sept. 30, 2017, reflecting a distressed level of revenue generation across business lines. An EV multiple of 3x was used to calculate a post-reorganization valuation based in a distressed company profile in a low growth industry in Latin America. Fitch calculates the recovery prospects for the senior secured notes in the 31% to 50% range based on a waterfall approach. This level of recovery results in the company's senior secured notes being rated the same as its (IDR) of 'B'/'RR4'. RATING SENSITIVITIES Future Developments That May, Individually or Collectively, Lead to Positive Rating Action -- Improved liquidity profile in the form of equity injections or asset sales; -- FFO and EBIT margins above 5%, EBITDA Margin improvement to above 10%, expansion of positive FCF, and stable operating results through industry and economic cycles resulting in a total adjusted debt/EBITDAR consistently below 4.5x. Future Developments That May, Individually or Collectively, Lead to Negative Rating Action -- Breach of covenants resulting in additional reduction in financial flexibility; -- Continued operational pressures resulting in EBITDA / Interest expense below 2x ; -- Sustained total adjusted leverage above 5.5x. LIQUIDITY Grupo Kaltex's Liquidity Position is Limited: The company's liquidity position is supported by historical robust cash flow from operations (CFFO), moderate cash balances and no significant debt maturities until 2022. At Sept. 30, 2017, the company reported a short-term debt of MXN859 million, of which around MXN600 million are revolving credits, compared with MXN461 million in cash. The company has approximately USD70 million of undrawn uncommitted credit lines. At the end of September 2017, Grupo Kaltex reported a total debt of MXN7,158 million, of which 95% was denominated in U.S. dollars and the rest in Colombian pesos. The debt consists mainly of USD320 million senior secured notes due 2022, and the rest are four bank loans. As of June 30, 2017, the issuer and the subsidiary guarantors collectively accounted for about 74% of Grupo Kaltex's consolidated assets, 100% of the consolidated EBITDA and 92% of consolidated sales. In addition, the notes are secured by mortgages that include a plant located in Tepeji del Rio, Hidalgo, Mexico, a Mexican plant located in Altamira, Tamaulipas, a non-possessory pledge agreement that includes machinery and equipment owned by Manufacturas Kaltex, S.A. de C.V. and a non-possessory pledge agreement covering machinery and equipment owned by Kaltex Fibers, S.A. de C.V. Based upon appraisals conducted in March of 2017, the approximate value of the collateral was MXN1,917 million (approximately USD100 million). FULL LIST OF RATING ACTIONS Fitch has downgraded the following ratings: Grupo Kaltex, S.A. de C.V. -- Long-Term Local Currency IDR to 'B' from 'B+'; -- Long-Term Foreign Currency IDR to 'B' from 'B+'; -- USD320 million senior secured notes due 2022 to 'B'/'RR4' from 'B+'/'RR4'. All of the aforementioned ratings have been placed on Rating Watch Negative. MEXICO: Opens Power-Line Sector to Private Firms ------------------------------------------------- EFE News reports that for the first time, Mexico will seek bids from private companies to construct and operate a high-voltage line linking the Baja California electric grid with the rest of the country, Energy Secretary Pedro Joaquin Coldwell said. The line, expected to cost $1 billion, will run from Mexicali in Baja California Norte to Hermosillo, capital of Sonora state, according to EFE News. "The new contracting model allows us to connect Mexican territory without committing public resources, as well as to use new and advanced technologies that will give the system greater security," Coldwell said during a presentation in Mexico City, the report notes. The line unifying the national grid is supposed to become operational in 2021, the report relays. Presentation of bids from interested companies is scheduled for next month and the contract is to be awarded in September 2018. Firms can submit bids individually or as part of consortiums, the report adds. ================= V E N E Z U E L A ================= VENEZUELA: Says More Than $3 Billion Frozen due to Sanctions ------------------------------------------------------------ The Latin Herald Times reports that Venezuela's government said the sanctions the United States imposed in August had left it with more than $3 billion in frozen assets in the global financial system. Foreign Minister Jorge Arreaza provided that figure in a meeting with a group of international observers who are in Venezuela to monitor the municipal elections, according to The Latin Herald Times. Leftist President Nicolas Maduro and the ruling United Socialist Party of Venezuela are hailing that balloting as proof of the country's healthy democracy even though much of the opposition is boycotting the vote, the report notes. The report relays that Mr. Arreaza criticized "the absolute coordination between the US government's anti-democratic imperialist policy against Venezuela's democracy" and efforts by Washington's allies to target Caracas, a reference to the European Union and Canada. In August, the US signed an executive order that bars dealings in new debt and equity issued by the Venezuelan government and that nation's state oil company, PDVSA, the report relays. The report notes that the move was the latest action by the US aimed at heaping pressure on Maduro's administration, which the opposition and several foreign governments say has moved to consolidate a dictatorship. For its part, the EU last month adopted a series of restrictive measures against Venezuela in response to gubernatorial elections in October that it said were marred by irregularities and to the setting-up of a plenipotentiary National Constituent Assembly (ANC) that it said further eroded democratic and independent institutions, the report relays. Those measures consisted of an "embargo on arms and on related material that might be used for internal repression, as well as a legal framework for a travel ban and assets freeze," the EU's Foreign Affairs Council said on Nov. 13, the report says. The report discloses that President Maduro has touted the ANC as necessary to lift Venezuela, which had been racked by months of violent opposition-led protests, out of political deadlock and a deep economic crisis triggered in part by lower oil prices in recent years. But Venezuela's opposition, which has been stymied in its efforts to oust President Maduro via a recall referendum, says it is merely a mechanism to increase the president's stranglehold on power, the report relays. Venezuela in recent weeks has had difficulty in making principal and interest payments on debt issued by the government and state oil company PDVSA, the report notes. President Maduro's government places the blame on US sanctions and on growing controls international banks are applying on transactions originating in the Caribbean nation, the report notes. Missed deadlines on debt repayment prompted rating agency S&P to recently declare PDVSA in selective default, according to the report. American investment groups are the main holders of Venezuelan bonds, 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, S&P Global Ratings lowered on Nov. 13, 2017, 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'." ================= X X X X X X X X X ================= * BOND PRICING: For the Week From December 4 to Dec. 8, 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 * * *