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        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

             Thursday, January 4, 2018, Vol. 19, No. 3


                            Headlines



A R G E N T I N A

TUCUMAN: Moody's Assigns B2 Global Scale LC Issuer Rating


B R A Z I L

PETROLEO BRASILEIRO: To Pay $2.95BB to Settle Class Action Lawsuit


C A Y M A N  I S L A N D S

CHINA FISHERY: Has Until Feb. 28 to Solicit Plan Acceptances


C H I L E

CHILE: Governing Coalition Meets After Election Loss


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Stricter Controls on Betting Parlors
DOMINICAN REPUBLIC: Unions Slam 'Upside-Down' Labor Enforcement


H O N D U R A S

HONDURAS: Opposition Renew Fight Over Disputed Election


J A M A I C A

CABLE & WIRELESS: Parent Sued to Reclaim Millions for Firm


P U E R T O    R I C O

COLONIAL MEDICAL: Taps Ada Conde as Legal Counsel
FARMACIA BRISAS: Court Conditionally OK's Plan Outline


V E N E Z U E L A

VENEZUELA: Misses Another Debt Payment, Ups Stakes for Bondholders
VENEZUELA: S&P Downgrades 2018 Global Bond Rating to 'D'


                            - - - - -



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


TUCUMAN: Moody's Assigns B2 Global Scale LC Issuer Rating
---------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo assigned an
issuer rating of B2 (Global Scale, local currency) and A3.ar
(Argentina National Scale, local currency) to the Province of
Tucuman. Concomitantly Moody's assigned a (P)B2/A3.ar to the
forthcoming ARS2,000 million Short-Treasury Bills Program. The
ratings outlook is stable.

RATINGS RATIONALE

The B2 issuer and (P)B2 program rating assigned to the Province of
Tucuman reflect: 1) the positive fiscal performance expected to
continue going forward, 2) the low debt levels and exposure to
foreign exchange risks, and 3) the very high degree of
transparency in its public financial disclosure. Also factored in
are weak economic fundamentals, some pressures to increase capital
expenses which may hurt its fiscal results in the long run and the
country's weak and volatile operating environment.

Tucuman's gross operating balances to current revenues has
fluctuated between an adequate surplus of 5% reported in 2014 and
a very low 0.3% for the last full fiscal year (2016) with a five-
year average cash financing result of 5.6% of total revenues.
Moody's expects the Province to preserve its financial equilibrium
going forward given the continuation of the economic growth in the
country and the incentives to keep a prudent fiscal management
given the relatively small size and diversification of its
economy. Another key strength is its low debt level with a ratio
of debt to total revenues declining from 36% in 2011 to 17% at the
end of this current fiscal year. In addition Moody's notes, that
the province's debt profile benefits from a very low exposure to
foreign currency obligations --less than 5% of its total
outstanding-, a credit positive in a country normally subject to a
high level of foreign exchange rate fluctuations. Regarding
transparency, the financial reporting of Tucuman not only is
timely but it is also very detailed. In this sense, it is worth
mentioning that this Province is one of the very few sub
sovereigns in Argentina that prepares balance sheets on a monthly
basis and post them in its website.

On the credit challenges, Tucuman displays weak economic
fundamentals with a GDP per capita at around 50% of national
average, and a high poverty level at around 30% of its population.
This weakness is reflected in a higher level of federal transfers
which stood at 74% of its total revenues during the last five
fiscal years, compared to an average of approximately 50% for the
provinces in aggregate. Another key credit challenge is the
potential for some increase in its capital expenditure given the
current very low levels relative to previous fiscal years. Whereas
the ratio of capital spending relative to total expenditures
averaged 8% for the 2011-2015 period, it fell to 5% in 2017. Other
key credit weaknesses are some concerns related to its internal
controls and payroll management, which led to an important
increase in its provincial debt between 2015 and 2016. Finally,
the issuer and debt ratings also reflect the weak operating
environment in Argentina, a factor also common to other provinces
in the country.

The ratings assigned to the planned Treasury Bills Program, are
the same as Tucuman's issuer rating since they do not present any
special credit enhancement to differentiate them from the issuer
rating levels. The program was created and authorized by
Governor's Decree Nß4.478.

The assigned ratings are based on preliminary documentation
received by Moody's as of the rating assignment date. Moody's does
not expect changes to the documentation reviewed over this period
nor anticipates changes in the main conditions that the Bills will
carry. Should issuance conditions and/or final documentation of
these Bills deviate from the original ones submitted and reviewed
by the rating agency, Moody's will assess the impact that these
differences may have on the ratings and act accordingly.

RATIONALE FOR THE STABLE OUTLOOK

The outlook is stable reflecting the expected maintenance of
Tucuman's key credit strengths and challenges going forward and
the stable outlook of the Government of Argentina.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Given the strong macroeconomic and financial linkages between the
sovereign and sub-sovereign entities, an upgrade or an outlook
change to positive of Argentina's sovereign bonds ratings could
lead to an upgrade or to an outlook change of the Province of
Tucuman ratings. Conversely, a downgrade in Argentina's bond
ratings or outlook change to negative and/or deterioration in the
idiosyncratic risk profile arising in this Province could exert
downward pressure on the ratings and could translate into a
downgrade.

The principal methodology used in these ratings was Regional and
Local Governments published in June 2017.


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B R A Z I L
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PETROLEO BRASILEIRO: To Pay $2.95BB to Settle Class Action Lawsuit
------------------------------------------------------------------
Reuters reports that Brazil's state-controlled oil company,
Petroleo Brasileiro, said that it has agreed to pay $2.95 billion
to settle a U.S. class action brought by investors who claim they
lost money as a result of a corruption scandal.

Petrobras, as the company is known, denied any wrongdoing under
the deal, which is one of the largest securities class action
settlements in the United States.  U.S. District Judge Jed Rakoff
in Manhattan must approve the settlement, according to Reuters.

The company said the settlement will be paid in three roughly
equal installments and will affect fourth-quarter results, the
report notes.

Investors sued Petrobras after prosecutors in Brazil accused
former executives at the company of accepting more than $2 billion
in bribes over a decade, mainly from construction and engineering
companies, the report relays.

The report says that Petrobras claimed it was itself a victim, and
it expressly denied wrongdoing in a securities filing. But its
market value has plunged as the so-called Lava Jato or "car wash"
corruption scandal has deepened.

Petrobras said that it hoped the settlement would resolve all
investor claims in the United States over the scandal, the report
notes.

The deal does not include investors who bought non-U.S.-based
Petrobras securities outside the United States, according to the
company, the report discloses.

The deal came just days after Brazil's securities regulator CVM
formally accused eight former Petrobras executives of corruption,
the report says.

According to a legal filing by the regulator, the accusations
relate to possible irregularities in the contracting process for
three drill ships, the report relays.

Among the accused in CVM's filing are former Petrobras chief
executives Maria das Gracas Foster and Jose Sergio Gabrielli, the
report notes.

The largest securities fraud settlements in U.S. history include
$7.2 billion stemming from the collapse of Enron, $6.2 billion
over an accounting scandal at WorldCom and $3.2 billion over an
accounting scandal at Tyco International, according to Stanford
Law School's Securities Class Action Clearinghouse, 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.).


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


CHINA FISHERY: Has Until Feb. 28 to Solicit Plan Acceptances
------------------------------------------------------------
The Hon. James L. Garrity, Jr., of the U.S. Bankruptcy Court in
New York has extended, at the behest of China Fishery Group
Limited (Cayman) and its affiliates, the exclusive period to
solicit acceptances of a Chapter 11 plan for each Debtor through
and including Feb. 28, 2018.

No later than Jan. 8, 2018, the Debtors will provide Malayan
Banking Berhad, Hong Kong Branch with a detailed accounting of the
proceeds of the loan extended by Teh Hong Eng, including, to the
extent practicable, evidence showing to which entity or entities
the proceeds of the THE Loan were directly or indirectly delivered
and for what purposes such proceeds were ultimately used.  If the
evidence is not delivered, the Debtors will provide an explanation
as to why delivery was not practicable.

As reported by the Troubled Company Reporter on Dec. 13, 2017, the
Debtors sought the extension, saying that they have structured the
CFGL/PARD Plan to complement the Chapter 11 Trustee's proposed
sale process for CFG Peru Singapore, after careful analysis of
potential plan structures and regular communication with the
Chapter 11 Trustee.  The treatment provided to creditors under the
CFGL/PARD Plan incorporates a toggle based on whether the Chapter
11 Trustee realizes a minimum sale price of $1.15 billion.  The
Debtors anticipate that the Chapter 11 Trustee's sale process will
move forward in tandem with the confirmation of the plan.
Consequently, the timeline for confirmation of the CFGL/PARD Plan
is expected to move ahead in parallel with the Chapter 11
Trustee's timeline for completing the sale process.  The PAIH Plan
is also currently expected to proceed along a similar timeline.

           About China Fishery Group Limited (Cayman)

China Fishery Group Limited (Cayman) and its affiliates sought
protection under Chapter 11 of the Bankruptcy Code (Bankr.
S.D.N.Y. Lead Case No. 16-11895) on June 30, 2016. The petition
was signed by Ng Puay Yee, chief executive officer. The cases are
assigned to Judge James L. Garrity Jr.

At the time of the filing, China Fishery Group estimated its
assets at $500 million to $1 billion and debts at $10 million to
$50 million.

Weil, Gotshal & Manges LLP has been tapped to serve as lead
bankruptcy counsel for China Fishery and its affiliates other than
CFG Peru Investments Pte. Limited (Singapore).  Weil Gotshal
replaces Meyer, Suozzi, English & Klein, P.C., the law firm
initially hired by the Debtors. The Debtors have also tapped
Klestadt Winters Jureller Southard & Stevens, LLP, as conflict
counsel; Goldin Associates, LLC, as financial advisor; RSR
Consulting LLC as restructuring consultant; and Epiq Bankruptcy
Solutions, LLC, as administrative agent. Kwok Yih & Chan serves as
special counsel.

On Nov. 10, 2016, William Brandt, Jr., was appointed as Chapter 11
trustee for CFG Peru Investments Pte. Limited (Singapore), one of
the Debtors.  Skadden, Arps, Slate, Meagher & Flom LLP serves as
the trustee's bankruptcy counsel; Hogan Lovells US LLP serves as
special counsel; and Quinn Emanuel Urquhart & Sullivan, LLP,
serves as special litigation counsel.


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C H I L E
=========


CHILE: Governing Coalition Meets After Election Loss
----------------------------------------------------
The Latin American Herald reports that Chile's governing New
Majority coalition met for the first time after its Dec. 17
presidential election defeat by rightist forces but made no self-
critique, waiting a more opportune time to do so, according to
participants.

The leaders of the parties comprising the center-left coalition
met with the ministers of the Political Committee at the
presidential palace to evaluate their legislative priorities in
the time remaining before the change of government on March 11 and
to prepare a summary of what has been achieved by the Michelle
Bachelet administration, according to The Latin American Herald.

The report relays that assessment was given to reporters after the
meeting by government spokesperson Paula Narvez, who emphasized
that "nobody made any specific self-critique.  That time will
come."

In the Dec. 17 elections, government presidential candidate
Alejandro Guillier lost the balloting by a wide margin to
conservative candidate Sebastian Pinera, and although Bachelet's
government has made some cursory assessments of the defeat, it has
not yet conducted an in-depth analysis, the report notes.

Ms.  Narvez said, there was "rather a general analysis of the
result of these elections," which in her opinion were a "complex
phenomenon . . . (with) many variables that factored into the
result," the report relays.

Ms.  Narvez also said that Bachelet "has no problem engaging in
self-criticism, the issue is rather the opportunity to do so," the
report relays.

Socialist Fidel Espinoza, the head of the Chamber of Deputies,
said that the meeting focused on the legislative projects
remaining to the current administration, including higher
education reform, the creation of a subsecretariat for children
and an anti-bribery bill, among other measures, the report notes.

Along those lines, he said that -- if necessary -- he will double
the number of scheduled sessions of the lower house in January to
fulfill the government's agenda, but regarding the election defeat
he said that the parties are in the process of reflecting on the
matter and "it's not the time to make decisions on whose 'heads
will roll,'" the report says.

In any case, though, he spoke about the need to have a unified
opposition to confront the future administration of Pinera, who
served as president from 2010-2014, the report discloses.

Meanwhile, lawmaker Guillermo Teillier, the head of Chile's
Communist Party, also spoke about the search for areas of
agreement with the leftist Broad Front (FA), which obtained 20
seats in the lower house and one Senate seat in last November's
legislative elections, the report notes.

An accommodation with the FA, he said, would not be "for the
building of a bloc, but rather on timely matters" such as
constituting congressional committees and winning the presidency
of the Chamber of Deputies, among other things, the report adds.

As reported in the Troubled Company Reporter-Latin America on
May 8, 2017, liquidity risk for Chilean companies has declined
considerably, despite a slowdown in the country's economic growth
and a slow recovery in commodity prices, says Moody's Investors
Service in a report.



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


DOMINICAN REPUBLIC: Stricter Controls on Betting Parlors
--------------------------------------------------------
Dominican Today reports that casinos, lotteries and betting
parlors, starting at the end of December 2017, must report and
even investigate sources of funds they receive from customers that
may be suspected of money laundering.

The new Finance Ministry resolution issued before yearend 2017,
sets a cap of US$3,000 or equivalent in pesos or crypto currencies
per day, either in a single or several transactions that total
that amount, will mean that those business must report the
operation, according to Dominican Today.

To achieve this, betting parlors must define a procedure that
involves information systems about their customers and also alerts
and verifications in international lists of people linked to money
laundering and terrorism financing, the report notes.

The umbrella regulation that defines the prevention of such
crimes-Law 155-17-states that all obligated parties must do "due
diligence," or timely reporting of an unusual or suspicious
operation, the report relays.

For example, according to the Finance Ministry recently published
regulations casinos must file the report at the time of payment of
a prize, ticket or cash, as well as purchase or exchange of chips
that exceed the US$3,000 per day ceiling, the report notes.

The report says that as to lotteries, due diligence must occur
when the customer presents the instrument -- voucher, ticket,
among others -- to claim a prize in excess of the amount indicated
above.

If casinos, lotteries and betting parlors consider that there are
major risks of money laundering or financing of terrorism, they
should even investigate the source of the suspicious customer's
funds, establish a follow-up on the operations they perform and
verify their reputation in reliable sources, among other
requirements, the report notes.

In the case of politically exposed persons (PEPs), which refer to
officials or their close relatives, the top management of those
businesses must authorize the relationship with those customers
and, in the event that they are approved, permanently monitor the
business link, the report discloses.

                         Ban 155-17

The US$3,000 cap, as a warning signal is defined in resolution
issued by the Finance Ministry, the report relays.  Law 155-17
bans bets of more than RD$250,000, which equals around U $5,200 at
the current rate, the report adds.

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.


DOMINICAN REPUBLIC: Unions Slam 'Upside-Down' Labor Enforcement
---------------------------------------------------------------
Dominican Today reports that Union leaders Rafael (Pepe) Abreu and
Gabriel del Rio said it's now more than clear the main hurdles of
the Dominican working class include uncontrolled immigration.

They said the uncontrolled entry of foreigners poses two serious
problems against the local workforce: depressed salaries and fewer
employment opportunities, according to Dominican Today.

Del Rio said it's the result of over-demand caused by the
phenomenon, the report notes.  "We cannot have the immigrants that
the country doesn't need," he added.

                        Upside-Down 80-20

The union leaders stressed that the law states that 80% of the
work must be for Dominican labor and the rest for the foreign work
is enforced upside-down, the report relays.

In sectors such as plantations and construction, among others, is
where the problem is most evident, as the jobs are mostly in the
hands of undocumented workers, the report notes.

The report relays that among those foreign nationals, he cited the
historic Haitian labor and now the Venezuelan labor market, where
they are paid below the salary that a Dominican would accept.

Mr. Abreu noted that during 2017 construction of the coal-fired
Punta Catalina power plant was halted for two days, because the
Odebrecht conglomerate was illegally hiring Brazilian and Mexican
laborers in technical works, the report discloses.  "Immigration
must be controlled and based on the of the country's needs," he
added.

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.


===============
H O N D U R A S
===============


HONDURAS: Opposition Renew Fight Over Disputed Election
-------------------------------------------------------
EFE News reports that less than two weeks after signaling his
withdrawal from politics, Honduran opposition standard-bearer
Salvador Nasralla said that he and his supporters are planning
fresh protests against what they contend was fraud in the Nov. 26
presidential election.

"The Alliance of Opposition to the Dictatorship never dissolved. I
confirm to you that the alliance is more solid than ever, that I
will begin to act as the president-elect of the Hondurans, and
that (ousted former president) Manuel Zelaya will continue to be
the coordinator-general of the alliance's activities," Nasralla
told a press conference in Tegucigalpa, according to EFE News.



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


CABLE & WIRELESS: Parent Sued to Reclaim Millions for Firm
----------------------------------------------------------
RJR News reports that the telecoms firm Cable and Wireless is
facing a huge lawsuit from one of its shareholders who claims its
parent company, Cable and Wireless UK unlawfully transferred money
out of Jamaica for its exclusive benefit.

The claim was brought by financier, Jason Abrahams who holds 60
million shares in Cable and Wireless Jamaica, according to RJR
News.

Mr. Abrahams wants billions of dollars reportedly taken out of the
local company to be returned to boost the company's financial
position, the report notes.

The suit follows news that emerged that Cable and Wireless Jamaica
that its majority shareholder CWC cala and its subsidiary
kelfenora . . . both owned 82 per cent of the company, the report
relays.

They are offering to purchase the 18 per cent they do not
currently own with an intent to take the company private, the
report notes.

As reported in the Troubled Company Reporter-Latin America on Aug.
11, 2017, S&P Global Ratings assigned its 'B' issue-level rating
to C&W Senior Financing Designated Activity Company's proposed
$700 million senior notes due 2027. This company is an orphan
special purpose vehicle (SPV) in the Cable & Wireless structure
(Cable & Wireless Communications Limited [CWC]; BB-/Negative/B).
The SPV will give the notes proceeds to Sable International
Finance Limited (SIFL), a CWC's subsidiary, and from there the
group will refinance in full Columbus International's $605 million
7.375% senior notes due December 2021; pay $45 million in
transaction related premiums, fees and expenses; and keep $40
million for general corporate purposes.



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


COLONIAL MEDICAL: Taps Ada Conde as Legal Counsel
-------------------------------------------------
Colonial Medical Management Corp. seeks approval from the U.S.
Bankruptcy Court for the District of Puerto Rico to hire Ada
Conde, Esq., as its legal counsel.

Ms. Conde will advise the Debtor regarding its duties under the
Bankruptcy Code and will provide other legal services related to
its Chapter 11 case.

Ms. Conde charges an hourly fee of $200 for her services.  The
Debtor paid a retainer in the sum of $10,000.

In a court filing, Ms. Conde disclosed that she is "disinterested"
as defined in section 101(14) of the Bankruptcy Code.

Ms. Conde maintains an office at:

     Ada M Conde, Esq.
     1611 Law and Justice for All, Inc.
     P.O. Box 11674
     San Juan, PR 00910
     Tel: 787-721-0401
     Email: 1611lawandjustice@gmail.com

             About Colonial Medical Management Corp.

Colonial Medical Management Corp. is an ambulatory health care
clinic located in Anasco, Puerto Rico.  Its practice location is
listed as Carretera 402 Km 1.8 Bo. Marias Anasco, Puerto Rico.

Colonial Medical sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D. P.R. Case No. 17-06925) on November 21,
2017.  Luis Jorge Lugo Velez, its president, signed the petition.

At the time of the filing, the Debtor disclosed that it had
estimated assets of less than $50,000 and liabilities of $1
million to $10 million.

Judge Brian K. Tester presides over the case.

The Debtor previously sought bankruptcy protection (Bankr. D. P.R.
Case No. 14-01922) on March 13, 2014.


FARMACIA BRISAS: Court Conditionally OK's Plan Outline
------------------------------------------------------
Judge Enrique S. Lamoutte Inclan of the U.S. Bankruptcy Court for
the District of Puerto Rico conditionally approved Farmacia Brisas
Del Mar, Inc.'s disclosure statement with respect to its chapter
11 plan dated Dec. 15, 2017.

Jan. 23, 2018 at 10:00 A.M. is fixed for the hearing on final
approval of the disclosure statement and for the hearing on
confirmation of the plan.

Three days prior to the hearing is fixed as the last day for
filing written acceptances or rejections to the plan.

Three days prior to the hearing is fixed as the last day for
filing and serving written objections to the disclosure statement
and confirmation of the plan.

              About Farmacia Brisas Del Mar

Headquartered in Luquillo, Puerto Rico, Farmacia Brisas Del Mar,
Inc. is a corporation dedicated to pharmaceutical services.  It
sells mostly pharmaceuticals goods; only a limited amount of sales
come from miscellaneous goods such as toys, beverages, school
supplies and beauty supplies.

Farmacia Brisas Del Mar filed a Chapter 11 bankruptcy petition
(Bankr. D. P.R. Case No. 17-04155) on June 9, 2017, in Old San
Juan, Puerto Rico.  It listed $461,158 in total assets and $1.61
million in total liabilities.

The petition was signed by Ana I De La Cruz Padilla, secretary.

The Debtor filed for Chapter 11 bankruptcy protection (Bankr. D.
P.R. Case No. 16-00054) on Jan. 8, 2016.  It estimated assets of
less than $500,000 and liabilities of $1 million to $10 million.
The 2016 petition was signed by Ana I. De La Cruz Padilla,
secretary.

Victor Gratacos Diaz, Esq., at Gratacos Law Firm, P.S.C., serves
as
the Debtor's bankruptcy counsel in both the 2016 and 2017 cases.
Judge Lamoutte Inclan presided over the 2016 case.


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


VENEZUELA: Misses Another Debt Payment, Ups Stakes for Bondholders
------------------------------------------------------------------
Julie Wernau and Imani Moise at The Wall Street Journal report
that Venezuela has defaulted on another debt obligation, according
to S&P Global Ratings, intensifying investor fears about the
country's ability to make more than $9 billion in bond payments
due in 2018.

The ratings firm said that Venezuela failed to make $35 million in
coupon payments for its bonds due in 2018 within a 30-day grace
period, according to The Wall Street Journal.  The government and
the state-owned oil company are now behind on $1.28 billion in
payments, according to investment firm Caracas Capital, the report
notes.

S&P classifies these missed payments as defaults, the report
relays.  The firm also said there is a one-in-two chance that
Venezuela will default on payments due within the next three
months, the report says.

With many Venezuelan bond payments arriving late or not at all,
bondholders can now push through the U.S. courts for full payment
on nearly all Venezuelan bonds, attorneys say, the report notes.
Most Venezuelan public debt issued in international markets is
governed by New York law, the report relays.

Court litigation provides the best chance for payment for holders
of $36 billion in sovereign bonds, Richard Cooper and Boaz Morag,
two lawyers in the litigation and arbitration group at Cleary
Gottlieb Steen & Hamilton LLP, argued in a recent white paper, the
report notes.

"What I expect to happen over the upcoming weeks is that we'll see
these bondholders organize themselves in response to the lack of
payment despite Venezuela's assertions that it will continue to
pay," said Michael Roche, emerging-market fixed-income strategist
at Seaport Global Holdings LLC, the report says.

But other analysts say investors may prefer to hold off, hoping
they will continue to get paid late and sporadically rather than
starting a process that lawyers say could be one of the most
complicated defaults ever, the report discloses.  Venezuelan
President Nicolas Maduro has insisted Venezuela will pay off its
near-term obligations, the report relays.  The government also has
said it wants to restructure all remaining debt, which analysts
put as high as $150 billion, the report notes.

But any restructuring process is made difficult because Mr. Maduro
and other government officials face U.S. sanctions, impeding most
foreign investors from negotiating with the administration, the
report relays.

The government appears to be prioritizing payments for its state
oil firm, said Siobhan Morden, managing director at Nomura, the
report notes.  That could be a sign that Mr. Maduro is looking to
protect the country's oil reserves and energy assets that
creditors might go after, she said, the report relays.

Petroleos de Venezuela SA, the state-owned oil company, recently
made $340.1 million in late payments, according to Caracas
Capital, and PdVSA bonds are trading at a premium to the country's
sovereign bonds, the report relays.

About 95% of dollars in Venezuela are from sales of oil, the
report discloses.  But that revenue stream has been fading as the
country's economic crisis and unpaid debts have steadily dropped
production, the report notes.  Oil prices are half their peak from
2008, the report says.  The country's oil output has fallen 12%
over the past two months, according to the Organization of the
Petroleum Exporting Countries, the report relays.

Economic mismanagement has left Venezuela on the edge of a
humanitarian disaster, economists said, the report discloses.  Mr.
Maduro's leftist government has cut food and medicine imports by
more than 70% since 2013 to preserve limited resources for debt
payments, according to investment bank Torino Capital LLC, the
report adds.


VENEZUELA: S&P Downgrades 2018 Global Bond Rating to 'D'
--------------------------------------------------------
On Jan. 2, 2018, S&P Global Ratings lowered its issue rating on
the Bolivarian Republic of Venezuela's global bond due 2018 to 'D'
from 'CC'. At the same time, S&P affirmed its long- and short-term
foreign currency sovereign issuer credit ratings at 'SD'/'D'. The
long- and short-term local currency sovereign credit ratings
remain at 'CCC-'/'C' and are still on CreditWatch with negative
implications. Other foreign currency senior unsecured debt issues
not currently rated 'D' are rated 'CC'.

CREDITWATCH

S&P said, "Our CreditWatch negative reflects our opinion that
there is a one-in-two chance that Venezuela could default again
within the next three months. We could lower specific issue
ratings to default ('D') if Venezuela doesn't make its overdue
coupon payments before the stated grace period expires, or upon
the execution of the announced debt restructuring.

"If the sovereign cures its default on the overdue coupon payments
and remains timely on other coupon payments before the
restructuring debt operation is completed, we would raise its
long-term foreign currency sovereign issuer credit and issue
ratings to 'CC'.

"If the sovereign completes any potential restructuring operation,
we would lower all of its foreign currency ratings on Venezuela to
default and subsequently raise them to the 'CCC' or 'B' category."

RATIONALE

On Dec. 31, 30 calendar days had passed since coupon payment was
due for Venezuela's global bond due 2018, and Venezuela had not
paid $35 million due to bondholders (or the bondholders had not
received funds by that date). In accordance with S&P's criteria,
"Methodology: Timeliness of Payments: Grace Periods, Guarantees,
And Use of 'D' And 'SD' Ratings," it has lowered the issue ratings
to 'D' (default) for these two bonds.

Overdue coupons now include the following seven issues:

-- US$2.496 billion 7.75% bonds due Oct. 13, 2019
-- US$2.496 billion 8.25% bonds due Oct. 13, 2024
-- US$1.6 billion 7.65% bonds due April 25, 2025
-- US$3 billion 11.75% bonds due Oct. 21, 2026
-- US$2 billion 9.00% bonds due May 7, 2023
-- US$2 billion 9.25% bonds due May 7, 2028
-- US$1 billion 7.00% bonds due Dec. 1, 2018

Another coupon payment is overdue, but within its grace period.
S&P could lower its ratings on the following issue to 'D' if the
government fails to pay within the stated grace period:

-- US$1.5 billion 6% bonds due Dec. 9, 2020

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

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

The committee's assessment of the key rating factors is reflected
in the Ratings Score Snapshot above.

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


RATINGS LIST
  Downgraded
                                          To        From
  Venezuela (Bolivarian Republic of)
   Senior Unsecured                       D         CC/Watch Neg

  Ratings Affirmed

  Venezuela (Bolivarian Republic of)
   Sovereign Credit Rating
    Foreign Currency                      SD/--/D
    Local Currency                        CCC-/Watch Neg/C
   Transfer & Convertibility Assessment   CC
   Senior Unsecured                       CC/Watch Neg
   Senior Unsecured                       D


                            ***********


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 2018.  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.
.


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