TCRLA_Public/180111.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

            Thursday, January 11, 2018, Vol. 19, No. 8


                            Headlines



A R G E N T I N A

CONVEXITY SGFCISA: Moody's Assigns B-bf GS Bond Fund Rating
GPAT COMPANIA: Moody's Assigns B1 Rating to XXXI Series Notes
PSA FINANCE: Moody's Rates Series 25th & 26th Debt Issue Ba3
QUINQUELA BALANCEADO: Moody's Assigns B-bf GS Bond Fund Rating
ROMBO COMPANIA: Moody's Assigns Ba3 Rating to Cl. 41 & 42 Bonds


B O L I V I A

BOLIVIA: Moves Toward Goal of Being South America's Energy Center


B R A Z I L

HIDROVIAS DO BRASIL: Moody's Assigns (P)Ba3 CFR; Outlook Stable
RIO GRANDE: Police End Strike After 20 Days


E C U A D O R

ECUADOR: Weighs Mediation to Resolve Julian Assange Issue


M E X I C O

SIXSIGMA NETWORKS: S&P Raises CCR from 'B+', Off Watch Positive


P U E R T O    R I C O

BAILEY'S EXPRESS: Hires Capital Recovery as Auctioneer
CHASE MONARCH: Hires Alberto Salva Javier as Accountant
UNIVERSITY OF THE SACRED HEART: Moody's Confirms Ba3 Bond Rating
WESTERN HIPERBARIC: Court Conditionally OK's Proposed Plan Outline


V E N E Z U E L A

VENEZUELA: Fund Managers Set to Mark Down Bond Holdings
VENEZUELA: Gov't Cuts Off Contacts With Aruba, Curacao, Bonaire


                            - - - - -


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A R G E N T I N A
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CONVEXITY SGFCISA: Moody's Assigns B-bf GS Bond Fund Rating
-----------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has
assigned bond fund ratings to a new bond fund, Convexity Renta
Plus (the Fund), managed by Convexity SGFCISA (Convexity) and
domiciled in Argentina.

The ratings assigned are:

* Global scale bond fund rating: B-bf

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

RATINGS RATIONALE

"The B-bf global scale bond fund rating is based on Moody's
expectation that the fund will have a high medium B credit profile
supported by investments in Argentinian fixed-income securities.
The Fund will mostly invest in fixed income securities, being now
allocated in LEBACs, which are short term obligations issued by
the Argentinian Central Bank.", said Carlos de Nevares, Moody's
Vice President. The national scale ratings reflects a national
scale mapping consistent for funds with a high B global scale
credit profile.

Convexity, the asset management arm of Advanced Capital
Securities, a local brokerage group, is an independent asset
manager in the Argentinean mutual fund Industry with a 0.4% market
share. As of December 2017, Convexity AM manages approximately
ARS2.43 billion or approximately $132.5 million.

The principal methodology used in these ratings was Moody's Bond
Fund Rating Methodology published in May 2013.


GPAT COMPANIA: Moody's Assigns B1 Rating to XXXI Series Notes
-------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo (MLA) has
assigned a B1 global local currency senior debt rating and a
Aa3.ar national scale local currency debt rating to GPAT Compania
Financiera S.A (GPAT)'s XXXI series issuance. The notes will be
issued in two tranches, A and B, which will be due in 12 months
and 36 months respectively, in an aggregate amount of up to ARS
500 million. The ratings are on review for downgrade, in line with
the review on GPAT's other ratings.

The following ratings were assigned to GPAT Compania Financiera
S.A:

ARS500 million Senior Unsecured Debt Issuance: B1 Global Local
Currency Debt Rating; Rating Under Review for Downgrade

Aa3.ar Argentina National Scale Local Currency Debt Rating; Rating
Under Review for Downgrade

RATINGS RATIONALE

GPAT's ratings incorporate strong credit linkages between the
company and its parent, Banco Patagonia S.A.'s ratings (Patagonia,
Ba3 on review, b2). These linkages include close operational links
together with the probability that the company will receive
financial support from Patagonia in an event of stress given its
strategic importance to its parent. As the finance company of
Patagonia, GPAT is primarily engaged in financing car sales of
General Motors dealers through Patagonia's branch network, while
Patagonia provides funding for dealers' floor plans. The ratings
also consider Argentina's operating environment, which while
improving has historically been very volatile, as well as the
company's solid risk management policies and good asset quality,
and high profitability. Key risks include the tight competition
within the car-financing industry, the entity's monoline business
orientation, and its largely wholesale funding structure, which is
representative of other auto finance companies as well.

Thanks to parental support, the company is one of the strongest
credits in Argentina, as reflected by its Aa3.ar national scale
rating. The Aa3.ar NSR is the lowest of the three alternatives on
the Argentine national scale corresponding to GPAT's B1 global
scale rating and reflects the review for downgrade of the issuer's
global scale rating. In turn, the review for downgrade of GPAT's
global scale ratings reflects the review of its parent's ratings.

Driven by declining inflation and interest rates, GPAT 's loan
book increased 69% in twelve months ended in September 2017,
despite higher credit costs and narrower lending spreads.
Notwithstanding GPAT's 89% share of the market for financing GM
car sales, increasing competition has led to a decline in the
company's net interest margin to below 4% in the nine months
through September 2017, from 5.7% in calendar year 2016. While net
income declined to 4.6% of tangible assets from 6% during the same
period as a result, profitability remains high even by Argentine
standards, which are distorted by the very high rate of inflation.

Despite a gradual deterioration since year-end 2016, nonperforming
loans remained moderate at 1.74% in September 2017, compared to
industry average of 2%. Moreover, the company's high loan book
granularity, the strong collateralization of its portfolio, and
loan loss reserves at 2.32% of gross loans help to mitigate the
increase in asset risk.

Moody's expects to conclude the reviews on Patagonia and GPAT's
ratings once there is greater certainty about the potential for
changes to Patagonia's ownership structure and the extent of any
new shareholders' willingness and ability to provide support to
the bank, and hence GPAT as well.

WHAT COULD CHANGE THE RATING UP/DOWN

GPAT's ratings could face downward pressure if ratings of its
parent, Patagonia, are downgraded, or if GPAT's financial
fundamentals deteriorate. GPAT's global scale rating could decline
by as two or more notches, and its NSR could fall by six or more
notches, should Patagonia's parent, Banco do Brasil S.A. (BB),
sell a portion of its stake in Patagonia such that there is no new
controlling shareholder, or should the new controlling shareholder
be either unrated or not rated as highly as BB. A downgrade of
BB's ratings, which could be driven by a downgrade of Brazil's
sovereign rating, would also put downward pressure on Patagonia
and GPAT's local currency ratings as could a reduction in Moody's
assessment of BB's willingness to provide support prior to an
official announcement of the sale of its stake, or the
identification of a buyer.

Given the review for downgrade, upward pressure on GPAT's ratings
is unlikely at this time. However, the ratings could be confirmed
at the current level if and when Patagonia's ratings are
confirmed, which could happened if BB announces the sale of its
stake to another entity rated at least the same as BB and that
exhibits a very high willingness to support Patagonia or if BB
reasserts its commitment to the bank.

The principal methodology used in these ratings was Finance
Companies published in December 2016.

GPAT Compania Financiera S.A is headquartered in Buenos Aires,
Argentina, and reported ARS5,712 million of total assets and
ARS1,007 million of shareholders' equity as of September 2017.


PSA FINANCE: Moody's Rates Series 25th & 26th Debt Issue Ba3
------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo S.A
assigned a Ba3 global local currency senior debt rating and a
Aa1.ar national scale rating to PSA Finance Argentina Compania
Financiera S.A.'s (PSA) twenty-fifth and twenty-sixth bond
issuances, due in 12 and 24 months respectively, for a up to a
combined amount of ARS 500 million.

The rating outlook is stable.

The following ratings were assigned to PSA Finance Argentina
Compania Financiera S.A.:

Series Twenty-Fifth senior unsecured debt issuance for up to ARS
500 million:

Ba3 Global Local Currency Debt Rating

Aa1.ar Argentina National Scale Local Currency Debt Rating

Series Twenty-Sixth senior unsecured debt issuance for up to ARS
500 million:

Ba3 Global Local Currency Debt Rating

Aa1.ar Argentina National Scale Local Currency Debt Rating

RATINGS RATIONALE

PSA's ratings consider the high probability that it will receive
financial support from its main co-parent Banque PSA Finance (BPF)
(A3, stable) in an event of stress, which reflects PSA's key role
as the financial agent for Peugeot Citroân Argentina S.A.
(unrated), The ratings also consider Argentina's operating
environment, which while improving has historically been very
volatile, as well as PSA's its solid risk management policies and
good asset quality, and very strong capitalization metrics. Key
risks include the tight competition within the car-financing
industry, the entity's monoline business orientation dedicated to
the financing of Peugeot vehicles, and its largely wholesale
funding structure.

PSA Finance is owned 50%-50% by BPF, which in turn is owned by
Peugeot S.A. (Ba1, stable), and Argentina's BBVA Banco FrancÇs
(unrated). BPF's high willingness to provide financial support to
its subsidiary in Argentina generates two notches of uplift from
PSA's b2 BCA. Thanks to parental support, the company is one of
the strongest credits in Argentina, as reflected by its Aa1.ar
national scale rating.

The company also benefits from very strong capitalization metrics,
with a tangible common equity to risk weighted assets ratio of
19.05% as of 3Q2017. With net income equal to 2.82% of tangible
assets on an annualized basis in the first nine months of 2017,
the company's profitability is in line Argentine standards, which
are distorted by the high rate of inflation. Moody's expects
earnings will narrow as inflation continues to decline, even if
business prospects are improving.

Consistent with other automobile captive finance companies in
Argentina, however, PSA's ratings also reflect risks associated
with its weak liquidity position and liability structure mainly
reliant on market funds. Interbank loans, including credit
facilities provided by BBVA Banco Frances, account for 57% of
PSA's liabilities. The rest of entity's funding largely consists
of car dealer deposits and senior debt in the local market.

While non-performing loans remain low at just 0.71% of gross loans
thanks to the company's focus on middle and high-income
individuals and solid risk management policies that are aligned to
those of its parent, delinquency levels are likely to rise as the
company's risk appetite increases in line with improving economic
conditions.

The stable outlook on PSA's ratings is aligned with the stable
outlook on Argentina's government bond rating.

WHAT COULD CHANGE THE RATING UP/DOWN

The Ba3 global scale rating would face upward pressure if
Argentina's sovereign rating were upgraded, in conjunction with an
improvement of the company's capital, profitability, and/or
liquidity. A significant improvement in the company's financial
fundamentals could also put upward pressure on the national scale
rating, even in the absence of a sovereign upgrade. Conversely,
the global scale ratings would face downward pressure if the
government of Argentina were to be downgraded, and both the global
and national scale ratings could be lowered if the entity's
capital base, profitability, and/or asset quality were to
deteriorate significantly.

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


QUINQUELA BALANCEADO: Moody's Assigns B-bf GS Bond Fund Rating
--------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo has
assigned bond fund ratings to Quinquela Balanceado FCI (the Fund),
a short-medium term bond fund domiciled in Argentina and managed
by QM Asset Management S.G.F.C.I.S.A.

The ratings assigned are:

* Global scale bond fund rating: B-bf

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

RATINGS RATIONALE

"The B-bf global scale bond fund rating is based on Moody's
expectation that the fund will have a high B credit quality
profile supported by investments in Argentinian fixed-income
securities. The Fund will continue investing in LEBACs, which are
short term obligations issued by the Argentinian Central Bank.",
said Carlos de Nevares, Moody's Vice President. The national scale
ratings reflects a national scale mapping consistent for funds
with a high B global scale credit profile.

QM Asset Management is a medium Argentinian independent asset
manager with a 1.6% of market share. As of December 2017, QM Asset
Management had assets under management of approximately ARS 8.91
billion (USD 484 million).

The principal methodology used in these ratings was Moody's Bond
Fund Rating Methodology published in May 2013.


ROMBO COMPANIA: Moody's Assigns Ba3 Rating to Cl. 41 & 42 Bonds
---------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo S.A.
assigned a Ba3 global local currency senior unsecured debt rating
and Aa1.ar national scale local currency debt rating to Rombo
Compania Financiera S.A.'s Class 41 and 42 bond issuances, due in
36 and 48 months respectively, for up to a combined amount of ARS
500 million.

The rating outlook is stable.

The following ratings were assigned to Rombo Compania Financiera
S.A.'s expected issuances:

Class 41 up to ARS 500 million:

Ba3 Global Local Currency Debt Rating

Aa1.ar Argentina National Scale Local Currency Debt Rating

Class 42 up to ARS 500 million:

Ba3 Global Local Currency Debt Rating

Aa1.ar Argentina National Scale Local Currency Debt Rating

RATINGS RATIONALE

Rombo's ratings consider the high probability that it will receive
financial support from its main parent, RCI Banque (RCI) (Baa1,
stable) in an event of stress, which reflects the entity's key
role as the financial agent for Renault. The ratings also consider
Argentina's operating environment, which while improving has
historically been very volatile, as well as the company's solid
risk management policies and good asset quality, and strong
capitalization metrics. Key risks include the tight competition
within the car-financing industry, the entity's monoline business
orientation dedicated to the financing of Renault vehicles, and
its largely wholesale funding structure.

Rombo, which is 60% owned by RCI Banque and 40% by BBVA Banco
FrancÇs (unrated) and together with RCI Banque forms the principal
financial arm of its ultimate owner, Renault S.A. (Baa3, stable)
in Argentina, is responsible for nearly 50% of Renault's financed
sales in the country. RCI's high willingness to provide financial
support to its subsidiary in Argentina generates two notches of
uplift from Rombo's b2 standalone credit profile. Thanks to
parental support, the company is one of the strongest credits in
Argentina, as reflected by its Aa1.ar national scale rating.

Rombo's capitalization level is strong, with tangible common
equity equal to 15.22% of adjusted risk-weighted assets as of
September 2017. In addition, non-performing loans remain low at
just 0.99% of gross loans thanks to the company's focus on middle
and high-income individuals and solid risk management policies
that are aligned to those of its parent, though delinquency levels
are likely to rise as the company's risk appetite increases in
line with improving economic conditions.

With ROAA of just 0.59% and a ROE of 5.37% in the first nine
months of 2017, however, the company's profitability is modest by
Argentine standards, which are distorted by the high rate of
inflation. This is partly explained by the fact that under
Argentine GAAP, the company currently has to expense commissions
paid to dealers at the moment of the loan origination, but it
records interest income over the life of the loans. However, the
company is slated to adopt IFRS in the first quarter of 2018, at
which point it will be able to prorate commission expenses over
the loan as well. As a result, its reported profitability should
increase substantially.

In addition, consistent with other automobile captive finance
companies in Argentina, Rombo's ratings reflect risks associated
with its weak liquidity position and liability structure mainly
reliant on market funds. Interbank loans account for nearly 50% of
its liabilities, and senior bond issuances represent another 28%
of total liabilities.

The stable outlook on Rombo's ratings is aligned with the stable
outlook on Argentina's government bond rating.

WHAT COULD CHANGE THE RATING UP/DOWN

The Ba3 global scale rating would face upward pressure if
Argentina's sovereign rating were upgraded, in conjunction with an
improvement of the company's capital, profitability, and/or
liquidity. A significant improvement in the company's financial
fundamentals could also put upward pressure on the national scale
rating, even in the absence of a sovereign upgrade. Conversely,
the global scale ratings would face downward pressure if the
government of Argentina were to be downgraded, and both the global
and national scale ratings could be lowered if the entity's
capital base, profitability, and/or asset quality were to
deteriorate significantly.

The principal methodology used in these ratings was Finance
Companies published in December 2016.


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B O L I V I A
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BOLIVIA: Moves Toward Goal of Being South America's Energy Center
-----------------------------------------------------------------
EFE News reports that Bolivia hopes to inaugurate in two or three
months the largest solar energy plant in the country, the latest
phase in an ambitious plan to become the energy center of South
America, President Evo Morales said.

The president visited several energy projects at the Uyuni Salt
Flat in southeast Bolivia, which with almost 10,600 hectares
(26,000 acres) is the world's largest, and at an altitude of 3,650
meters (12,000 feet), the world's highest, according to EFE News.

As reported in the Troubled Company Reporter-Latin America on
Aug. 3, 2017, Moody's Investors Service has changed the outlook on
Bolivia's issuer and senior unsecured bond ratings to stable from
negative, and has affirmed the ratings at Ba3.


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B R A Z I L
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HIDROVIAS DO BRASIL: Moody's Assigns (P)Ba3 CFR; Outlook Stable
---------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)Ba3
Corporate Family Rating to Hidrovias do Brasil S.A.("HBSA"). At
the same time, Moody's assigned a (P)Ba3 rating to the proposed
senior unsecured notes due in 7 years to be issued by Hidrovias
International Finance S.ar.l., and fully and unconditionally
guaranteed by HBSA and its fully-owned subsidiaries, except for
the Bauxite operations subsidiaries (guarantor group),
collectively responsible for 85% of the company's total EBITDA.
This is the first time Moody's rates Hidrovias do Brasil. The
outlook for the ratings is stable.

The provisional designation for ratings will be removed once the
notes have been issued and assuming no material changes have
occurred to the draft documentation reviewed by Moody's.

Ratings assigned:

Hidrovias do Brasil S.A.

- Corporate Family Rating: (P)Ba3

Hidrovias International Finance S.ar.l.

- Proposed senior unsecured notes due in 7 years: (P)Ba3

The outlook for the ratings is stable.

RATINGS RATIONALE

HBSA's (P)Ba3 ratings reflect primarily the company's strong
business model with over 90% of revenues and EBITDA ensured by
long term take or pay agreements with strong off takers. The
agreements contain minimum volumes guarantees and cost pass-
through clauses, translating into predictable cash flows, high
capacity utilization rates and high operating margins for the
company. The positive outlook for agricultural production and
waterborne transportation in Brazil and Paraguay, and HBSA's
strategic location of operations also support the ratings.

The ratings incorporate Moody's expectations that HBSA's credit
metrics will improve from 2018 onwards with the ramp-up of its
northern operations. Moody's expect the company's adjusted
leverage to approach 4.0-4.5x by the end of 2018, and to gradually
decline further to 3.0x by 2020 along with increased
transportation volumes. Additionally, pro forma for the proposed
issuance, HBSA will have a good liquidity profile, with a
comfortable debt amortization schedule and a sizeable free cash
flow generation related to a stable cash conversion cycle,
limitations on dividend distributions and low capex needs going
forward. Accordingly, Moody's estimate the company's cash position
will increase to around BRL 1.0 billion in the next three years
from BRL 189 million at the end of September 2017, providing it
with solid financial flexibility.

On the other hand, the ratings are constrained by the company's
short track record of operations and by its small size relative to
rated peers. The high degree of product and geographic
concentration also constrain the ratings, as it exposes the
company to adverse weather conditions that impact agricultural
production and river navigability. There is also a high degree of
client concentration, although the good credit quality of HBSA's
clients provides some comfort to the future compliance of the take
or pay agreements.

Moody's view the company's strong ownership and the existence of
committed equity injections as credit positives, although Moody's
believe there is room for improvements in terms of corporate
governance and internal controls. For example, the company
recently restated its financials due to the non-disclosure of
covenants breach. In this sense, Moody's would view as positive
the implementation of internal audits and fiscal council, and a
longer track record of stricter internal controls.

The proposed issuance is part of HBSA's liability management
strategy and proceeds will be used to refinance the totality of
the guarantor group's project-finance debt, thus lengthening the
company's debt amortization schedule and enhancing its financial
flexibility. The guarantor group generates approximately 85% of
HBSA's total EBITDA and holds 80% of the company's total debt. The
rating of the proposed unsecured notes stands at the same level as
the company's corporate family rating given that the instrument
will represent 80% of the company's total debt, and the proportion
of secured debt within HBSA's capital structure will not be
relevant (approximately 20% of total).

The stable outlook incorporates Moody's expectations that HBSA's
operations will perform in line with the terms and conditions
established by the existing take or pay agreements, and that the
company will prudently manage dividends distribution and future
investments to preserve its good liquidity profile.

Although unlikely in the near term, an upgrade could occur if HBSA
is able to increase in size and widen its client, product and
geographic diversity, while maintaining the current business model
and profitability near current levels. Quantitatively, a rating
upgrade would require the maintenance of adjusted leverage
(measured by debt/EBITDA) below 3.0x and of interest coverage
(measured by adjusted FFO + interest / interest) above 4.5x on a
consistent basis. The maintenance of a strong liquidity profile
would also be required for an upgrade.

The ratings could be downgraded if HBSA's operations or business
profile deteriorate due to the loss of any existing take or pay
agreement or due to a debt-financed expansion into the spot
market. Quantitatively, a downgrade could occur if the company
fails to reduce leverage overtime so that total adjusted debt to
EBITDA remains above 4.5x and interest coverage below 3.5x without
prospects for improvement. A deterioration in the company's
liquidity profile derived from large shareholder distribution or
aggressive financial policies would also result in a downgrade of
the ratings.

Headquartered in Sao Paulo, Brazil, HBSA is South America's
largest independent provider of integrated logistics focused on
waterway transportation. The company's operations include
shipping, transshipment, storage and port services for dry bulk
cargoes, including grains, iron ore, bauxite, fertilizers and pulp
in the Hidrovia and Amazon river systems. In the LTM ending
September 2017, the company generated BRL 634 million (USD200
million) in revenues with an adjusted EBITDA margin of 48.4%,
coming mainly from shipping activities (80% of total) and other
logistics services (20%). Grain transportation represents
approximately 55% of the company's total EBITDA, followed by iron
ore (30%), bauxite (12%) and other products (3%). Approximately
62% of the company's total EBITDA is generated in Brazil, with the
remaining 38% generated in Paraguay and Uruguay. After 2018,
Moody's expect HBSA's annual revenues to reach approximately BRL
1.0 billion (USD300 million) and EBITDA margins to remain at 50-
60% with the ramp-up of volumes of existing take or pay
agreements.


RIO GRANDE: Police End Strike After 20 Days
-------------------------------------------
Business Standard reports that police officers in the Brazilian
state of Rio Grande do Norte ended a strike that kept them off the
job for 20 days, forcing officials to deploy army troops in the
region following a spike in violent crime.

The officers agreed to return to duty after state officials
promised to pay some of the salary arrears, EFE reported,
according to Business Standard.

The civil police went on strike on December 20, a day after
military police officers walked off the job, the report notes.

On January 2, the military police decided on a gradual return to
work once the strike was ruled illegal, while the civil force
resolved to continue the stoppage, the report relays.

Each of Brazil's 26 states has two police agencies, one military
and one civil, the report says.

While military police are responsible for maintaining public
order, the civil force investigates crimes.

Officers went on strike to demand payment of salary arrears and
better working conditions.

The strike prompted state officials to request the deployment of
the army to maintain order, and some 2,800 soldiers have been on
patrol in the principal cities of Rio Grande do Norte since last
week, the report notes.

The army plans to continue patrolling cities in Rio Grande do
Norte until January 12, but Governor Robinson Faria said that he
hoped the soldiers would remain longer, the report adds.

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



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E C U A D O R
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ECUADOR: Weighs Mediation to Resolve Julian Assange Issue
---------------------------------------------------------
Business Standard reports that Ecuador's Foreign Minister said
that Quito may pursue mediation to resolve the standoff between
the South American nation and Britain over the fate of WikiLeaks
founder Julian Assange, who has spent more than five years holed
up at the Ecuadorian Embassy in London.

"We have an enormous interest in reaching a definitive solution to
the Assange case and to make that happen we are in permanent
dialogue with the government of the United Kingdom," EFE quoted
Maria Fernanda Espinosa as saying, according to Business Standard.

"We are also considering and exploring the possibility of
mediation," she said, adding that the role of mediator could be
played by an individual or a third-country government, the report
relays.

The Australian citizen sought refuge at the Ecuadorian mission in
June 2012 after losing a battle in the British courts to avoid
extradition to Sweden, where prosecutors had been seeking to
question him about rape allegations dating back to 2010, the
report notes.

The report notes that Mr. Assange, who denies all the accusations,
said that once he was in Swedish custody the US would pressure
Stockholm into handing him over for prosecution based on
WikiLeaks' publication of classified documents, the report relays.

Ecuador granted Mr. Assange's application for political asylum,
but the UK government continues to deny him safe passage to the
government, even after Swedish prosecutors' announcement last May
that they were closing the original sexual assault investigation,
the report relays.

The report discloses that asked by a reporter about Ms. Assange's
health, Mr. Espinosa replied: "How would you feel after 5 1/2
years of being in a small office, without being able to enjoy
sunlight and without breathing fresh air?"

"Even people in detention centers can go out to the yard, play
sports," she said, notes the report.

The Foreign Minister said that Ecuador remains committed to
ensuing Assange's safety, according to Business Standard.

"We are a country that defends human rights.  A country, moreover,
that respects international law," she said.

Describing Assange's situation as unsustainable, she said that
Ecuador will continue to approach the UK in a "very, very
respectful way" to find a solution, the report relays.

As reported in the Troubled Company Reporter-Latin America on
Jan. 9, 2018, Egan-Jones Ratings Company, on Oct. 12, 2017, raised
the foreign currency and local currency senior unsecured ratings
on debt issued by the Republic of Ecuador to B+ from B.  EJR also
upgraded the ratings on the Company's commercial paper to B from
C.

Ecuador is a country straddling the equator on South America's
west coast.


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M E X I C O
===========


SIXSIGMA NETWORKS: S&P Raises CCR from 'B+', Off Watch Positive
-------------------------------------------------------------
S&P Global Ratings raised its corporate credit rating on Sixsigma
Networks Mexico, S.A. de C.V. (KIO Networks) to 'BB-' from 'B+'.
S&P also removed the ratings on the company from CreditWatch,
where it had placed them with positive implications on Nov. 3,
2017. The rating outlook is stable.

S&P said, "At the same time, we raised our issue-level rating on
the company's senior unsecured debt to 'BB-' from 'B+'. We also
revised the recovery rating to '3' from '4', indicating our
expectation for meaningful recovery (50%-90%) in the event of a
payment default."

The upgrade reflects KIO Networks' sharp deleveraging, following
the sale of its metropolitan fiber optic business for about $500
million to American Tower Corporation, because the company used
the majority of its proceeds to pay down debt. S&P forecasts an
improvement in the company's credit metrics--debt to EBITDA below
4.0x and funds from operations (FFO) to debt above 15% for the
following two years--which leads it to revise the financial risk
profile on the company to aggressive from highly leveraged. Debt
reduction more than offsets the 20% EBITDA loss that the telecom
asset generated.

Although key credit metrics could qualify for a better financial
risk profile assessment, our rating incorporates KIO Networks'
financial sponsor ownership in which Tresalia Capital S.A. de C.V.
(not rated), a private equity firm, owns the controlling interest.

S&P assesses the financial-sponsor-owned companies as having
aggressive financial risk profiles to incorporate the risk of
subsequent leveraging, even if the current balance sheet indicates
otherwise.


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


BAILEY'S EXPRESS: Hires Capital Recovery as Auctioneer
------------------------------------------------------
Bailey's Express, Inc. has filed an amended application with the
U.S. Bankruptcy Court for the District of Connecticut seeking
approval to hire Capital Recovery Group, LLC, as auctioneer to the
Debtor.

Bailey's Express requires Capital Recovery to sell the Debtor's
remaining personal property and inventory assets located at 61
Industrial Park Road, Middletown, Connecticut.

Capital Recovery will be paid 18% buyer's premium on each items
sold with 3% going to Capital Recovery's on-line auction provider
and 15% to Capital Recovery. The buyer's premium is added to the
final sale/hammer price on each item sold and is paid by the
winning bidder and is not included as part of the gross auction
sale proceeds.

Capital Recovery will charge Bailey's a 10% seller's commission on
total sale proceeds up to $30,000 and 5% commission on total sales
proceeds in excess of $30,000.

Stephen R. Papillo, partner of Capital Recovery Group, LLC,
assured the Court that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code and does
not represent any interest adverse to the Debtor and its estates.

Capital Recovery can be reached at:

     Stephen R. Papillo
     CAPITAL RECOVERY GROUP, LLC
     1654 King Street
     Enfield, CT 06082
     Tel: (860) 623-9060
     Fax: (860) 623-9160

                About Bailey's Express, Inc.

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

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

Judge Ann M. Nevins presides over the case.

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

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


CHASE MONARCH: Hires Alberto Salva Javier as Accountant
-------------------------------------------------------
Chase Monarch International, Inc., seeks authority from the U.S.
Bankruptcy Court for the District of Puerto Rico to employ Alberto
Salva Javier, as accountant to the Debtor.

Chase Monarch requires Alberto Salva Javier to:

   a. review accounting record for preparation of month and
      year end accounting and financial reports;

   b. prepare estate returns and declarations, as long as these
      are deemed necessary;

   c. prepare monthly reconciliations of all bank accounts and
      any credit facilities if become in existence;

   d. prepare liquidation analysis, financial projections, claim
      reconciliations and related financial documents as support
      for a Plan of Reorganization.

Alberto Salva Javier will be paid at $50 hourly rate and
reimbursed for reasonable out-of-pocket expenses incurred.

Alberto Salva Javier assured the Court that the firm is a
"disinterested person" as the term is defined in Section 101(14)
of the Bankruptcy Code and does not represent any interest adverse
to the Debtor and its estates.

Alberto Salva Javier can be reached at:

     Alberto Salva Javier
     605 Condado Street, Suite 601
     San Juan, PR 00907
     Tel: (787) 722-3308
     Fax: (787) 724-1669
     E-mail: ascompanysalva@yahoo.com

              About Chase Monarch International, Inc.

Chase Monarch International, Inc., filed a Chapter 11 bankruptcy
petition (Bankr. D.P.R. Case No. 16-06841) on November 14, 2017,
disclosing under $1 million in both assets and liabilities. The
Debtor is represented by Hector Juan Figueroa Vincenty, Esq.


UNIVERSITY OF THE SACRED HEART: Moody's Confirms Ba3 Bond Rating
----------------------------------------------------------------
Moody's Investors Service has confirmed the Ba3 rating on
University of the Sacred Heart, PR's (Universidad del Sagrado
Corazon or Sagrado) General Revenue and Refunding Bonds, 2012A
issued through Puerto Rico Industrial, Tourist, Educational,
Medical and Environmental Pollution Control Facilities Financing
Authority. The rating outlook is negative. This concludes the
rating review initiated on October 20, 2017.

RATINGS RATIONALE

The confirmation of University of the Sacred Heart's Ba3 reflects
a demonstrated ability to sustain near term enrollment following
Hurricane Maria, along with modest expected use of reserves for
recovery. Sagrado reported a return of 96% of originally enrolled
students, resulting in minimal loss of net tuition revenue for the
first half of fiscal 2018. The campus suffered comparatively minor
damage and the university will receive funds from insurance and
possibly FEMA to cover a portion of the costs.

The Ba3 rating favorably incorporates still adequate reserves with
some enhanced flexibility due to the reclassification of certain
funds previously considered permanently restricted. The
university's strong management team has demonstrated a clear
ability to control and adjust expenses to declining enrollment
which should limit calls on cash to fund operations. However, for
fiscal 2018 increased costs during recovery along with some
reduction in revenue is expected to drive a modest reduction of
liquidity. The rating is more fundamentally constrained by the
university's very challenging market environment, with continued
depopulation of Puerto Rico raising risks of ongoing enrollment
declines and volatility. A small endowment, with modest
fundraising and thin cash flow, limit its forward strategic
position.

RATING OUTLOOK

The rating outlook is negative as the university works to
stabilize operations and enrollment as Puerto Rico very slowly
recovers from the hurricane's destruction. The current negative
outlook reflects rating pressure if enrollment drops for spring
2018 or fall 2018 resulting in lower tuition revenues, or if
fiscal 2018 operating results or liquidity are substantially
weaker than fiscal 2017. Failure to achieve compliance on its
financial covenants for fiscal 2018 could also pressure the
rating. Prior factors driving a negative outlook, including the
risk of heightened cash monitoring by the Department of Education,
and certain covenant violations, were favorably resolved.

FACTORS THAT COULD LEAD TO AN UPGRADE

- Stabilized student demand with growing net tuition per student
   and higher non-resident enrollment

- Substantial growth in balance sheet resources and liquidity

FACTORS THAT COULD LEAD TO A DOWNGRADE

- Fall 2018 enrollment and fiscal 2018 operating results weaker
   than planned, with rising risks of longer term fiscal imbalance

- Failure to achieve covenant compliance for fiscal 2018 or
   beyond

- Material decline in unrestricted liquidity

LEGAL SECURITY

The Series 2012A bonds are an unsecured general obligation of
university. There is an additional bonds test and rate covenant.
There is no debt service reserve fund.

The Loan Agreement for the bonds has two financial covenants, a
Debt Service Coverage covenant of more than 110% and an Expendable
Financial Resources to Debt covenant of more than 35%. Sagrado
reported full covenant compliance in fiscal 2017 of 388% and 65%,
respectively. This follows failure of both covenants in fiscal
2015 and 2016. The failure was due to pension adjustments and
charges related to its voluntary transition program for employee
retirements, both reflected in the changes in unrestricted net
assets and, consequently, in the debt service coverage calculation
for the covenant. Moody's considers pension adjustments as non-
operating expenses and, therefore, not included in Moody's debt
service coverage calculation, resulting in a positive debt service
coverage number.

Due to failing to meet the financial covenants for 2015 and 2016,
Sagrado retained a consultant to review its business operations
and pricing and make recommendations for improved results. As long
as the university was taking all lawful actions to comply with the
recommendations, the covenant failure was not considered an Event
of Default. On June 23, 2017, Sagrado filed disclosure on EMMA of
the board's acceptance of the consultant's report and
recommendations. As of June 30, 2017, Sagrado had regained full
compliance with both financial covenants.

USE OF PROCEEDS

Not applicable

PROFILE

Universidad del Sagrado Corazon (University of the Sacred Heart)
is a large, private Catholic liberal arts university founded in
1880 by the religious order of the Society of the Sacred Heart. In
1970 the Sisters of the Sacred Heart transferred the governance to
a lay Board of Trustees. Sagrado is located in the Santurce
section of San Juan, a historic area. The university is largely
undergraduate and offers selected masters and post-graduate
certificates programs. Notable programs include those in the
communications major, including digital media. Headcount
enrollment for fall 2017 was nearly 4,800 students.


WESTERN HIPERBARIC: Court Conditionally OK's Proposed Plan Outline
------------------------------------------------------------------
Judge Edward A. Godoy of the U.S. Bankruptcy Court for the
District of Puerto Rico conditionally approved Javier Sosa Faria
and Western Hiperbaric Services P.S.C.'s disclosure statement,
dated Dec. 28, 2017, in support of its plan of reorganization.

Acceptances or rejections of the Plan may be filed in writing
on/or before 14 days prior to the date of the hearing on
confirmation of the Plan.

Any objection to the final approval of the Disclosure Statement
and/or the confirmation of the Plan must be filed on/or before 14
days prior to the date of the hearing on confirmation of the Plan.

A hearing for the consideration of the final approval of the
Disclosure Statement and the confirmation of the Plan will be held
on Feb. 8, 2018 at 09:30 A.M. at the United States Bankruptcy
Court, Southwestern Divisional Office, MCS Building, Second Floor,
880 Tito Castro Avenue, Ponce, Puerto Rico.

             About Western Hiperbaric Services P.S.C.

Western Hiperbaric Services P.S.C., Hyperbarics and Wound Care
Centers of Puerto Rico Corp., Outpatient Alternatives Corp., and
Ponce Hyperbaric & Wound Care Center sought protection under
Chapter 11 of the Bankruptcy Code (Bankr. D.P.R. Case No. 17-04062
to 17-04065) on June 6, 2017.  The petitions were signed by Javier
Sosa Faria, president, who filed a Chapter 11 petition (Bankr.
D.P.R. Case No. 17-03421) on May 16, 2017.  The cases were
substantially consolidated pursuant to an order entered on July 3,
2017.

The Debtors employed Justiniano Law Offices as their bankruptcy
counsel.

At the time of the filing, the Debtors estimated their assets and
liabilities of less than $1 million.



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


VENEZUELA: Fund Managers Set to Mark Down Bond Holdings
-------------------------------------------------------
Katia Porzecanski at Bloomberg News reports that fund managers
holding Venezuela government bonds face a day of reckoning after
months of waiting for more than half a billion dollars in late
interest payments.

Since November, investors following guidelines established by the
Emerging Markets Traders Association have marked their Venezuela
bond holdings to include all the interest they were owed, even
though it hadn't shown up yet, according to Bloomberg News.  The
trade group decided to scratch that rule, and say that beginning
Jan. 10 the nation's debt will trade flat, or without accrued
interest, Bloomberg News notes.  If the coupons are eventually
paid, they'll go to whoever holds the bonds that day, Bloomberg
News relays.

The decision, which followed a week of talks with market
participants, comes two months after rating companies deemed
Venezuela to be in default, Bloomberg News says.  Typically,
defaulted bonds begin to trade flat after the grace period on
missed debt payments expires, Bloomberg News notes.  But with
President Nicolas Maduro and his allies repeatedly saying the
nation would honor its debt -- and with several delayed coupons on
bonds issued by the state oil producer eventually making their way
to creditors -- the market had given Venezuela the benefit of the
doubt, Bloomberg News says.  Recently, the government's gone
silent on its bonds, spurring concern it's selectively defaulting,
Bloomberg News relays.

"It's pretty clear the government does not intend to make payments
on Republic debt," Rich Cooper, a partner at Cleary Gottlieb Steen
& Hamilton LLP, said in an interview with Bloomberg News.  "You
can talk about payments getting held up by financial
intermediaries and the like, but at some point that becomes less
credible and I think we are now comfortably past that point," he
added.

Bloomberg News relays that those creditors who'd been following
EMTA guidelines will now have to write off the accrued interest
they'd accounted for on Venezuelan notes from their net asset
value.  They should also write down any missed coupons they're
entitled to reflect their expected recovery value, Bloomberg News
says.  By making these changes in January, money managers avoided
suffering the loss in their 2017 performance, Bloomberg News
discloses.

The revaluation may be somewhat offset by the market rally, which
was fueled in part by pent-up demand and the adjustment to a so-
called all-in price, Bloomberg News says.  Venezuela's $2.5
billion of notes due in 2019 climbed 2.6 cents to 22.75 cents on
the dollar on Jan. 10 at 12:06 p.m. in New York, Bloomberg News
says.

The recommendation doesn't apply to debt issued by state-owned
Petroleos de Venezuela, which will continue to trade with a
payment for accrued and unpaid interest, Bloomberg News notes.

The back-and-forth between EMTA, its board members -- which
include representatives from Ashmore Group Plc, Loomis Sayles &
Co., Barclays Plc and JPMorgan Chase & Co. -- and other players
had caused trading to seize up this month, Bloomberg News relays.
Traders have cited the lack of appetite by investors to pay for a
bond knowing that at any moment, the rules could change, Bloomberg
News notes.

"If you change the convention too often the issue is it freezes
the market and it creates a lot less liquidity, and makes bonds
more volatile and keeps investors away," Yerlan Syzdykov, head of
emerging-market debt at Amundi Asset Management, said in an
interview with Bloomberg News.  "It's been very unfortunate for
the market because this confusion prevents the market from
clearing buyers and sellers," he added.

At the same time, the rule change has created a degree of chaos
concerning bonds with missed coupons that have already been sold.
Per the previous EMTA guidelines, stipulated on Nov. 15, a bond-
seller kept the right to the missed coupon, in addition to
receiving compensation for accrued interest, Bloomberg News
relays.  Because the new guidelines dictate that rights to a
missed coupon go to the bond-buyer, the previous holder may be
left chasing his or her claim to the missed interest payment, if
and when it's ever paid, Bloomberg News notes.

"There's no way the government, when and if it restructures or
makes the relevant interest payment, can take responsibility for
that -- it's got to pay the record owner as of such date," Cooper
said, Bloomberg News notes.  "Ultimately the responsibility for
making good on any of these arrangements will be in the hands of
the beneficial holders and whatever agreements or lack thereof
exist between the parties or the broker-dealers who brokered the
trade," he added.

Another impact from the change may be that Venezuela's creditors
that had patiently waited for their interest payments may now seek
to demand immediate repayment of their principal -- a process
known as acceleration, Bloomberg News discloses.  Most bonds
require holders of just 25 percent of an outstanding security to
agree to do so, Bloomberg News relays.

"Acceleration becomes the next step -- and a check to see if
Venezuela will quickly cough up the money to pay the coupon and
halt a potential acceleration," Russ Dallen, the managing director
at Caracas Capital, wrote in a note to clients, Bloomberg News
relates.  "Venezuela's reaction to the potential acceleration
could be the final clarification for still-hopeful bondholders
about whether they were actually going to get paid or not," he
added.

As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2017, Moody's Investors Service has withdrawn the Caa3
rating of the US$5 billion, 6.5% Government of Venezuela bond due
on Dec.29, 2036 (ISIN USP97475AQ39).

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'."



VENEZUELA: Gov't Cuts Off Contacts With Aruba, Curacao, Bonaire
---------------------------------------------------------------
EFE News reports that the government of Venezuela closed down
contacts with Aruba, Curacao and Bonaire until a meeting is held
with the authorities of those Caribbean islands to come up with a
plan to fight their mafias, which, it said, are affecting the
economy of the petroleum-producing country.

"President @Nicolas Maduro has extended the measure of suspension
of all kinds of air and sea traffic; as well as any trade with
ARUBA, CURACAO and BONAIRE," Venezuela's Vice President Tareck el
Aissami said on Twitter, according to EFE News.

As reported in the Troubled Company Reporter-Latin America on
Dec. 21, 2017, Moody's Investors Service has withdrawn the Caa3
rating of the US$5 billion, 6.5% Government of Venezuela bond due
on Dec.29, 2036 (ISIN USP97475AQ39).

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'."


                            ***********


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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