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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

             Friday, May 4, 2018, Vol. 19, No. 87


                            Headlines



A R G E N T I N A

PSA FINANCE: Moody's Puts Ba3 GS Rating on ARS500MM Unsec. Debt
TELECOM ARGENTINA: Fitch Rates Proposed USD Sr. Notes 'B+(EXP)'


B R A Z I L

BANCO DE LA NACION: Fitch Affirms LT IDRs at B, Outlook Positive
COMPANHIA ENERGETICA: Fitch Hikes IDRs to 'B', Outlook Stable
COOPERATIVA DE AHORRO: Fitch Cuts LT IDRs to B-, Outlook Stable
ODEBRECHT ENGENHARIA: Fitch Cuts Long-term IDR to 'C'
PROVINCIA CASA: Fitch Affirms Long-term IDRs at B, Outlook Stable


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: AEIH OKs China Ties But Demand Transparency
DOMINICAN REPUBLIC: Official Refutes 'Danger' Allegation Over Fund


P U E R T O    R I C O

HUMANA HEALTH: S&P Cuts Financial Strength Rating to 'B+'


V E N E Z U E L A

VENEZUELA: Authorizes Exchange Offices for Remittances
VENEZUELA: Failed to Implement Remedial Measures, Says IMF


                            - - - - -


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A R G E N T I N A
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PSA FINANCE: Moody's Puts Ba3 GS Rating on ARS500MM Unsec. Debt
---------------------------------------------------------------
Moody's Latin America Agente de Calificacion de Riesgo S.A (MLA)
assigned Ba3 and Aa1.ar global and national scale ratings to PSA
Finance Argentina Compania Financiera S.A.'s (PSA) twenty-seventh
senior unsecured debt issuance, which will be due in 24 months,
for up to ARS 500 million.

The ratings outlook is stable.

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

Series 27 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 co-parent, Banque PSA Finance (BPF)
(A3, stable), in an event of stress. The parent's willingness to
provide support offsets the ongoing challenges the company faces
related to Argentina's operating environment and tight competition
within the car-financing industry. Exacerbated by the company's
monoline business orientation dedicated to the financing of
Peugeot vehicles, these operating challenges have resulted in a
sharp deterioration in the company's financial fundamentals in
recent years. While asset quality remains strong, the rating also
considers risks related to the company's largely wholesale funding
structure.

PSA is owned 50%-50% by BPF, which in turn is owned by Peugeot
S.A. (Peugeot) (Ba1, stable), and Argentina's BBVA Banco Frances
S.A. (unrated). Moody's assesses BPF's willingness to support PSA
as high because of PSA's key role as the financial agent for
Peugeot Citroân Argentina S.A. (unrated). The finance company
currently finances almost 95% of Peugeot's total financed sales.
Thanks to parental support, the company is one of the stronger
credits in Argentina, as reflected by its Aa1.ar national scale
rating.

While Argentina's operating environment continues to improve
thanks to market-friendly policy reforms implemented by the
current administration, historically it has been very volatile,
with frequent and dramatic policy reversals. Moreover, lenders
face challenges associated with the transition to a more
normalized operating environment, which will put downward pressure
on lending spreads, capital levels, and liquidity, and will
require them to adapt their business models to ensure their
continued success.

As a result of the 62% increase in loans in 2017, coupled with a
significant dividend paid last October, and a steep decline in the
company's earnings, PSA's capitalization metrics deteriorated
sharply; tangible common equity fell to 11.8% of risk-weighted
assets as of December 2017 from 20.46% a year earlier. Despite the
decline, capital remains above that of most of the company's peers
and is expected to stabilize in 2018 as loan growth slows and
dividend payouts decline.

Net income also dropped sharply in 2017, to 2.94% of tangible
assets from 7.3% in 2016 and 11.1% in 2015, partly as a result of
reduced sales of insurance products. Nevertheless, earnings remain
in line with local peers and, despite pressures from declining
inflation and interest rates, Moody's expects they will improve
mildly following the implementation of IFRS in Argentina this year
as certain commissions and fees will now be prorated over the life
of the associate loans, rather than charged up front as has
historically been the case.

Consistent with other automobile captive finance companies in
Argentina, PSA's ratings also reflect risks associated with its
weak liquidity position and liability structure mainly reliant on
market funds. Market funds to tangible assets, including credit
facilities provided by BBVA Banco Frances S.A. and senior
unsecured debts in the local market, equaled nearly two-thirds of
tangible banking assets as of year-end 2017, up from 57% in 2016
and just 42% in 2015, exposing the company to increased
refinancing and interest rate risk. At the same time, liquid
banking assets accounted for an extremely low 0.5% of tangible
banking assets. However, the company has a committed credit line
from its co-parent BBVA Banco Frances S.A. for ARS 1.700 million,
46% of which was undrawn as of March 2018.

Non-performing loans remain very low at just 0.7% 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. However, rising asset risks are partly masked
by the rapid pace of lending growth. Delinquencies are likely to
climb as the loan book seasons and the company's risk appetite
continues to grow 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 and Moody's
expectation that capital will remain adequate even if it continues
to deteriorate.

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 PSA'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 April 2018.


TELECOM ARGENTINA: Fitch Rates Proposed USD Sr. Notes 'B+(EXP)'
---------------------------------------------------------------
Fitch Ratings has assigned Telecom Argentina S.A. Long-Term
Foreign (FC) and Local Currency (LC) first time Issuer Default
Ratings (IDRs) of 'B' and 'BB-', respectively. The Rating Outlook
for the Foreign Currency Rating is Positive, and the Rating
Outlook for the Local Currency Rating is Stable. Fitch has also
assigned Telecom Argentina's proposed USD senior unsecured notes
issuance a rating of 'B+(EXP)'/'RR3'.

Telecom Argentina's ratings reflect the company's strong business
position as a leading integrated telecom operator in Argentina.
The company benefits from a solid financial profile, underpinned
by its robust operational cash flow generation and conservative
capital structure. Telecom Argentina's ratings are tempered by
intense competition in Argentina's mature telecom market, as well
as the volatile macro-economic environment, which has led to high
inflation and sharp currency movements.

The 'B' country ceiling of the Republic of Argentina, which limits
the foreign currency rating of most Argentine corporates, has
constrained Telecom Argentina's FC IDR at 'B'. The Positive Rating
Outlook for the FC IDR is linked to the Positive Outlook of
Argentina. Elections during November 2017 improved confidence in
the durability of the policies being pursued by President Macri,
which bodes well for investment and the sovereign's ability to
maintain favourable financing access. The build-up in
international reserves and a more flexible exchange rate have
improved the country's ability to manage shocks. Country Ceilings
are designed to reflect the risks associated with sovereigns
placing restrictions upon private sector corporates that may
prevent them from converting local currency to any foreign
currency under a stress scenario and/or may not allow the transfer
of foreign currency abroad to service foreign currency debt
obligations.

The 'RR3' Recovery Rating of its proposed senior unsecured notes
reflects above average recovery prospects in the event of default
given the company's solid balance sheet and cash flow generation.
Fitch believes that the company's default, should it occur, would
be most likely driven by transfer and convertibility restrictions
imposed upon the payment of foreign debt, and not as a result of a
material deterioration of the company's business or financial
profile. In this case, Fitch's criteria allows for recovery
ratings to be assigned above the cap for Argentine issuances of
'RR4'. Fitch's Country-Specific Treatment of Recovery Ratings
criteria allows for a one notch uplift for recovery whenever there
is a two notch rating differential between a company's foreign and
local currency ratings.

Telecom Argentina's proposed issuance of up to USD1 billion would
rank pari-passu with existing senior unsecured notes. The tenor of
the notes is expected to be up to 10 years and will be held at the
parent company level alongside other Telecom Argentina notes. Uses
of proceeds are expected to be for capital expenditures,
refinancing of short-term obligations, as well as for general
corporate purposes.

KEY RATING DRIVERS

Merger with Cablevision Credit Positive: The ratings incorporate
the merger between Cablevision S.A and Telecom Argentina S.A,
which went into effect Jan. 1, 2018, with the latter being the
surviving entity. The combined entity will benefit from increased
operating scale, enhanced product offerings, cost reductions and a
solid financial profile; all of which will support the merged
entity's enhanced market position and cash flow generation. The
merger with Cablevision also enhances the diversification of
service offering and revenue, within Argentina, which lowers the
company's business risk. The rating impact will be limited as the
merged entity's ratings are constrained by the Country Ceiling of
Argentina at 'B'.

Strong Business Position: Fitch expects Telecom Argentina's solid
market position to remain intact over the medium term given its
extensive network coverage, quality of service, and strong brand
recognition. During 2017, Telecom Argentina's pay-tv market share
remained stable at 38% while its merged broadband subscriber
market share is expected to be 56%. Fixed and mobile market share
is also viewed as strong at 48% and 32% within the country,
respectively. The company's pay-TV network spans across 7.8
million homes-passed connecting 6.4 million revenue generating
units (RGU). Its pay-tv subscriber base has remained relatively
stable at 3.5 million subscribers, while its broadband customer
base has grown to 4.1 million subscribers. The merged entity's
subscriber base also includes 19.7 million mobile and 3.8 million
fixed line subscribers. 38% of the combined entity's revenue came
from mobile service, while 23% and 19% came from pay-TV and fixed
broadband, respectively.

Mature Telecom Market: Argentina has among the highest penetration
rates in Latin America; pay-TV represents a penetration rate of
79%, while mobile, fixed and broadband have penetration rates of
142%, 80%, and 61%, respectively. As a result, growth is limited
going forward. Although Telecom Argentina is well positioned to
cope with increasing competition given its entrenched business
position, Fitch believes that competitive pressures amid market
maturity will negatively affect its market shares and operating
margins in the long term. Fitch expects Telecom Argentina's growth
to come mainly from its broadband segment as the company focuses
on cross-selling opportunities within its pay-TV and mobile
customer base. The company's HFC network competitiveness is solid
against telecom operators, and the broadband penetration rate in
Argentina remained relatively lower, at 61%, compared to pay-TV
and telephone services, which still offers some growth headroom.

Robust Financial Profile: Telecom Argentina's financial profile is
among the strongest of regional Fitch-rated telecom companies
across rating categories. The company has historically maintained
a conservative capital structure to cope with operational and
regulatory risks. Pending successful issuance, Fitch expects the
company's pro forma gross and net leverage to be 1.0x and 0.6x,
respectively. Fitch's base case is in line with the company's
target to increase gross leverage to close to 2.0x in the medium
term, which is still viewed as extremely strong for LC IDR rating
of BB-. The company's capital intensity, measured as capex-to-
sales, is expected to remain close to range from 22% to 24% over
the next three years, as the company initiates a plan to invest up
to USD5 billion for network upgrades and other corporate expenses.
Post-dividend free cash flow during this capital expenditure cycle
is expected to range from negative ARS14 billion to negative ARS21
billion.

Moderate Regulatory Environment: The regulatory environment has
stabilized in Argentina with the establishment of its new
regulatory agency, Ente Nacional de Comunicaciones - ENACOM
(National Communications Entity) removing uncertainty for telecom
and media operators, including Telecom Argentina. ENACOM was
established to fairly regulate the industry. Nevertheless, the
regulatory risk remains moderately negative as the changes
included the elimination of certain restrictions and loosened
regulations to promote market driven competition in an already
highly saturated and competitive market, which could lead to the
company's weaker market position going forward. Fitch believes
that the regulatory framework is unlikely to change, given the
already intense competitive landscape and high level of
penetration in the Argentine telecom industry.

DERIVATION SUMMARY

Telecom Argentina's 'B' FC IDR and 'B+' unsecured bond rating are
being constrained by the 'B' country ceiling of the country. The
company's LC IDR is rated two notches above the country ceiling at
'BB-' reflecting has an outstanding business and financial
profile. Cablevision's operating performance, robust cash
generation, and capital structure have remained resilient despite
operating in a challenging economic environment with high
inflation. If the operating environment in Argentina improves, the
LC IDR rating could be upgraded.

Telecom Argentina's business profile is more in line with the
'BBB' category due to its leading positions in pay-tv, broadband,
as well as both fixed and mobile telephone services. The company
has extensive network coverage and solid quality. Its financial
profile is consistent with the 'BBB' category, comparing
favourably versus rated peers rated in the 'B' or 'BB' categories
such as Digicel Group Limited and Colombia Telecommunications S.A.
Service diversification compares favourably to regional peers, but
is offset by Telecom Argentina's lack of geographical
diversification and weak operating environment.

KEY ASSUMPTIONS

Fitch's key assumptions within the rating case for the issuer
include:

--Double-digit annual revenue growth as the company is able to
consistently raise prices to mitigate pressures from high
inflation and local currency devaluation.
--Consolidated EBITDA margins of 31.9% and gradually trending
down as a result of increasing competition;
--Capex in line with company's plan to invest USD5 billion over
the next three years;
--Gross leverage to increase steadily over the next three years,
in line with company's target.

Key Recovery Rating Assumptions
--The recovery analysis assumes that Telecom Argentina would
continue operating in case of default and that the company would
be reorganized rather than liquidated.
--Fitch has assumed a 10% administrative claim.

Going-Concern Approach:
Recovery analysis considers a post restructuring EBITDA after
default, based on Fitch's estimate of 2018 EBITDA. The EV multiple
of 5.5x used to calculate a post-reorganization valuation
considers the standard multiple used for telecommunications
companies in the region.

Recovery ratings are capped by Fitch's Country-Specific Treatment
of Recovery Ratings criteria, which places a soft cap of 'RR4' for
Argentine issuances. The criteria allows for a one notch uplift
for recovery whenever there is a two notch rating differential
between a company's foreign and local currency ratings. Using this
methodology, Fitch has assigned a recovery rating of 'RR3' for
Telecom Argentina's proposed issuance; which in turn allows for a
one notch upgrade to the issuance to 'B+'.


RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action
--The ratings would be upgraded in the case of an upgrade of
Argentina's sovereign ratings, which are currently on Positive
Outlook.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action
--Fitch does not foresee any negative rating pressures for
Telecom Argentina that would stem from operational difficulties in
the short to medium term given its solid market position and
strong financial profile, however, the ratings would be downgraded
in case of a downgrade of Argentina's sovereign rating,
introduction of adverse regulatory or government measures that
would materially affect the company's market share and credit
profile.

LIQUIDITY

Telecom Argentina has historically maintained a conservative
capital structure to mitigate operational and regulatory risks.
The company has a strong liquidity position, underpinned by its
high readily available cash balance, low leverage and robust cash
flow generation. Pending the success of the proposed notes
issuance, Fitch expects the merged entity to hold up to ARS16.8
billion (USD800 million) of readily available cash and up to ARS41
billion (USD2 billion) of debt, as of Dec. 31, 2018; resulting in
adjusted gross and net leverage of up to 1.1x and 0.9x,
respectively. The company has no material debt repayments until
2021, which further bolsters its financial flexibility.

FULL LIST OF RATING ACTIONS

Fitch has assigned ratings for Telecom Argentina as follows:

Long-Term FC IDR of 'B', Outlook Positive;
Long-Term LC IDR of 'BB-', Outlook Stable;
Long-Term rating on proposed senior unsecured notes up to USD1
billion 'B+(EXP)'/'RR3'.


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B R A Z I L
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BANCO DE LA NACION: Fitch Affirms LT IDRs at B, Outlook Positive
----------------------------------------------------------------
Fitch Ratings has affirmed Banco de la Nacion Argentina's
(Sucursal Uruguay) (BNAUY) Foreign Currency (FC) and Local
Currency (LC) long-term Issuer Default Ratings (IDRs) at 'B'. The
Rating Outlook is Positive.

KEY RATING DRIVERS

IDRs

BNAUY's IDRs are aligned with the Republic of Argentina's
sovereign ratings as it is an integrated branch of Banco de la
Nacion Argentina (BNA), fully owned by the Argentine government.
BNA's liabilities (including its branches abroad) are guaranteed
by the Argentinian sovereign.

The BNA's and BNAUY's valuations are strongly influenced by
Argentina's still volatile and adverse economic and operating
environment. Although the current government is taking steps in
the right direction and reducing policy and regulatory
intervention in the financial system, the local environment in
Argentina is still characterized by broad economic imbalances and
measures are being taken gradually and therefore the recovery of
the economy is likely to take some time to materialize.

The head office, BNA, has a leading franchise and systemic
importance in Argentina. It is the largest bank in terms of loans
and deposits, with international coverage through branches and
representative offices in seven countries that mainly attend to
domestic needs related to intraregional foreign trade supporting
the commercial activity of Argentina in the region. BNAUY is the
smallest bank in the country due to its narrow business focus.

BNAUY is fully integrated with the head office's strategies,
corporate governance practices and risk management procedures.
BNAUY operates through only one main office and its activities are
reported to the International Banking area of BNA. BNAUY has
volatile profitability, a fairly liquid balance sheet and adequate
capitalization metrics.

RATING SENSITIVITIES

IDRs
BNAUY's ratings are sensitive to changes in Argentina's sovereign
rating and/or willingness or ability to provide support to BNA and
its branches.

Fitch has taken the following rating actions:

Banco de la Nacion Argentina (Sucursal Uruguay)
--Long-term Foreign Currency IDR affirmed at 'B'; Outlook
Positive;
--Long-term Local Currency IDR affirmed at 'B'; Outlook Positive.

Fitch has also withdrawn BNAUY's Support Rating of '4', as Fitch
understands that a support rating in this case doesn't provide a
relevant credit opinion for this issuer (since BNAUY is a full
branch of BNA).


COMPANHIA ENERGETICA: Fitch Hikes IDRs to 'B', Outlook Stable
-------------------------------------------------------------
Fitch Ratings has upgraded Companhia Energetica de Minas Gerais
(Cemig) and its wholly owned subsidiaries Cemig Distribuicao S.A.
(Cemig D) and Cemig Geracao e Transmissao S.A.'s (Cemig GT) Long-
term Foreign and Local Currency Issuer Default Ratings (IDRs) to
'B' from 'B-' and their Long-term National Scale Ratings to 'BBB-
(bra)' from 'BB-(bra)'. At the same time, local debentures
issuances were upgraded to 'BBB-(bra)' from 'BB-(bra)' and Cemig
GT's USD1 billion eurobond issuance was affirmed at 'B', with its
respective Recovery Rating changing to 'RR4' from 'RR3'. In
addition, Fitch has removed the Rating Watch Negative from all
ratings and assigned a Stable Outlook for the corporate ratings.

The upgrade reflects Cemig's ability to refinance a large portion
of its short-term debt maturities and improve its liquidity
profile since the end of 2017. The group was able to refinance
around BRL3.4 billion with banks, issued the USD1 billion
eurobonds, had a capital injection of BRL1.3 billion and sold
around BRL700 million in Transmissora Alianca de Energia Eletrica
S.A.'s (Taesa) shares. In addition, Fitch views that the group
currently has a higher financial flexibility to manage future
short-term debt maturities. The expected additional EBITDA, by
around BRL400 million to BRL500 million annually, coming from
Cemig D's tariff review process was also incorporated in our base
scenario and should support the group's deleveraging process. The
net adjusted leverage is expected to be in the range of 3.5x to
4.2x in the next four years, which is low for the IDR of a company
in the power sector. Negatively, the high interest payments should
continue to pressure the group's free cash flow (FCF).

Cemig and its subsidiaries' credit profiles are analyzed on a
consolidated basis due to cross default clauses and cash dynamics.
The group presents a low to moderate business risk, supported by
low competition and positive asset diversification, mainly into
power generation, transmission and distribution segments, being
the latter the most volatile. Positively, Cemig has a relevant
asset base in the Brazilian electric sector, including shared
control in several companies with relevant market value. The IDRs
also factor in the existence of political risk, due to Cemig's
condition as a state owned company, as well as a moderate
regulatory risk for the Brazilian power sector and a hydrology
risk currently above historical average.

Fitch has changed the Recovery Rating of Cemig GT's eurobond
issuance to 'RR4' from 'RR3' reflecting the bulk of its assets
located in the Brazilian jurisdiction that has been considered by
Fitch in the group of countries with Recovery rating capped at
'RR4', which means recovery prospects at the range of 31% to 50%
in the event of default, given the group's cash flow generation
and assets portfolio.

KEY RATING DRIVERS

Higher Operational Cash Flow: Fitch believes that Cemig's
consolidated FCF will be positive at around BRL160 million in 2018
and BRL300 million in 2019, as Cemig D is expected to obtain
annual additional EBITDA of BRL400 million-BRL500 million after
the implementation of the fourth tariff review cycle on May 2018.
The higher EBITDA should contribute to boost the group's cash flow
from operations (CFFO). Cemig D's reported EBITDA of BRL831
million in 2017 is far from the regulatory EBITDA of BRL1.7
billion, so the company still needs to improve efficiency. In
2017, the consolidated CFFO was only BRL200 million due to the
negative impact of non-manageable costs of almost BRL1 billion at
Cemig D, conversely to the positive impact of BRL1.5 billion in
2016. Capex of BRL1.1 billion and BRL540 million in dividends
payments resulted in a negative FCF of BRL1.5 billion.

Moderate Leverage: Fitch expects Cemig's consolidated net adjusted
leverage to be reduced to the range of 3.5x to 4.2x in the next
four years. In Dec. 31, 2017, Cemig reported consolidated net
adjusted debt/adjusted EBITDA of 4.7x after almost 6.0x in 2016.
Fitch includes the guarantees of BRL5.9 billion to non-
consolidated companies, mainly to Belo Monte and Santo Antonio
hydro plants, and the exercised put option in the total adjusted
debt. On the other hand, dividends received from non-consolidated
investments in the amount of BRL354 million were added to the
EBITDA.

Favorable Business Model: The group benefits from its
diversification in terms of segments and assets, which mitigates
operational risks and reduces the group's cash flow volatility.
Cemig is one of the largest power companies in Brazil, with 8.4
million clients served in the distribution segment, 5.7 GW of
power generation installed capacity and 8.2 thousand km of
transmission lines. The company is expected to reduce its activity
in greenfield projects and in the acquisition of assets, after
being very aggressive historically. The debt associated with the
acquisitions at relevant levels and strong dividend payments in
the past, have significantly affected the group's credit quality.

Strategic Sector for the Country: In Fitch's analysis, the credit
profile of agents in the Brazilian power sector benefits from its
strategic importance to sustain the country's potential economic
growth and foster new investments. The federal government has
acted to circumvent systemic problems that impact the cash flow of
companies and guided discussions to improve the current regulatory
framework in order to reduce the risk of the sector.

DERIVATION SUMMARY

Comparing to peers in the power sector, Cemig presents higher
leverage and weaker liquidity than Eletropaulo Metropolitana de
Eletricidade de Sao Paulo (Local and Foreign Currency IDRs 'BB')
and its affiliated company Light S.A. (Local and Foreign Currency
IDRs 'BB-'), despite of its more diversified asset base that tends
to reduce operational risks and cash flow volatility. When
assessing other Latin American players at the power sector,
although Cemig has a larger revenue base, its coverage ratios
compare unfavourably with AES Argentina and Genneia, both with
Local Currency IDR of 'BB-'

KEY ASSUMPTIONS

Fitch's key assumptions within our rating case for the issuer
include:

  --Average energy consumption growth at Cemig D's concession area
to increase 2.75% in 2018 and 3% in 2019-2020

  --Positive annual impact of BRL400 million-BRL500 million on
Cemig D's EBITDA related to the fourth tariff review cycle;

  --Cemig D's non-manageable costs fully passed through tariffs;

  --Average consolidated capex of BRL1.5 billion during 2018-2021;

  --Dividend payout of 50% of net income or BRL420 million,
considering which one presents the higher amount;

  --No cash outflow to pay Light's shares put option in 2018.

RATING SENSITIVITIES

Future Developments That May, Individually or Collectively, Lead
to Positive Rating Action

  --Improvement of liquidity with cash/short-term debt higher than
1.0x;

  --Maintenance of net adjusted leverage lower than 3.5x;

  --Ability to reduce interest rates.

Future Developments That May, Individually or Collectively, Lead
to Negative Rating Action

  --Deterioration of liquidity and reduction in financial
flexibility with cash/short-term debt below 0.5x;

  --Maintenance of net adjusted leverage higher than 5.0x;

  --Perception of lower financial flexibility to meet short-term
debt maturities.
LIQUIDITY

Improved Liquidity Profile: Fitch considers that Cemig's liquidity
profile has improved in the last six months through the debt
renegotiation with banks, equity injection, eurobond issuance and
the sale of Taesa's shares. Nevertheless, the group still needs to
manage some short-term obligations until the end of 2018, mainly
coming from the around BRL600 million of Light's shares put option
on November and BRL2.2 billion of debentures maturing on December.
The expected additional EBITDA from the distribution segment and
the potential asset sales may also be important internal sources
of liquidity in the next years. At the end of 2017, Cemig group's
total adjusted debt amounted to BRL21.2 billion (including off-
balance sheet debt of BRL5.9 billion and exercised put option of
BRL600 million), while cash and equivalents were BRL2.0 billion.
The debt maturing in the short term was BRL2.9 billion.

FULL LIST OF RATING ACTIONS

Fitch has taken the following ratings actions:

Cemig

  --Long-Term Foreign Currency IDR upgraded to 'B' from 'B-';

  --Long-Term Local Currency IDR upgraded to 'B' from 'B-';

  --Long-Term National scale rating upgraded to 'BBB-(bra)' from
'BB-(bra)'.

Cemig D

  --Long-Term Foreign Currency IDR upgraded to 'B' from 'B-';

  --Long-Term Local Currency IDR upgraded to 'B' from 'B-';

  --Long-Term National scale rating upgraded to 'BBB-(bra)' from
'BB-(bra)';

  --BRL 400 million senior unsecured debentures due 2018 upgraded
to 'BBB-(bra)' from 'BB-(bra)';

  --BRL1.6 billion senior unsecured debentures due 2018 upgraded
to 'BBB-(bra)' from 'BB-(bra)'.

Cemig GT

  --Long-Term Foreign Currency IDR upgraded to 'B' from 'B-';

  --Long-Term Local Currency IDR upgraded to 'B' from 'B-';

  --Long-Term National scale rating upgraded to 'BBB-(bra)' from
'BB-(bra)';

  --BRL1.4 billion senior unsecured debentures, with two
outstanding series due 2019 and 2022, upgraded to 'BBB-(bra)' from
'BB-(bra)';

  --USD1 billion eurobonds due 2024 affirmed at 'B' and Recovery
Rating changed to 'RR4' from 'RR3'.
The Rating Watch Negative was removed from all ratings, and a
Stable Outlook was assigned to the corporate ratings.


COOPERATIVA DE AHORRO: Fitch Cuts LT IDRs to B-, Outlook Stable
---------------------------------------------------------------
Fitch Ratings has downgraded Cooperativa de Ahorro y Credito
(FUCEREP)'s Long-Term Issuer Default Ratings (IDRs) to 'B-' from
'B' and Viability rating (VR) to 'b-' from 'b'. The Rating Outlook
has been revised to Stable from Negative.

The rating actions reflect FUCEREP's weak overall financial
performance in the recent past, which has posted net losses for
five consecutive years, and significantly affected its capital
levels.

KEY RATING DRIVERS - IDR and VR

FUCEREP's IDR and VR are highly influenced by its small size
within the Uruguayan financial system and the challenges the
cooperative faces to improve its financial performance.

Additionally, the ratings also consider the cooperative's
increased risk appetite as it diversifies its operations into
riskier businesses, and its deteriorating asset quality.

FUCEREP's capital ratios have sharply declined in the last four
years due to losses and an increase of intangible assets (largely
IT investments) since 2015. The company's Fitch Core Capital (FCC)
ratio fell to 14.45% at Dec. 31, 2017 from 25.14% in 2016.
However, at March 31, 2018 FUCEREP's FCC ratio improved to around
23%, due to the positive impact from its equity stemming from the
adoption of International Financial Reporting Standards (IFRS) in
January 2018.

Fitch estimates that FUCEREP's capitalization will continue to
experience pressure in the medium term given the expected
portfolio growth and low results, which will be partly offset by
the annual capital contributions made by its members.

Positively, in May 2017 the Central Bank of Uruguay reduced the
required minimum regulatory capital to the level in place until
2013, which eased the pressure on its regulatory capital and had
restricted its growth capacity.

FUCEREP's financial performance has been weak in the past five
years. While its operating revenues have slightly increased, the
entity has registered operational losses mainly due to low growth,
rising loan loss provisions and a hefty cost base. Although
FUCEREP is a not for profit entity, profitability is important as
a source of internal capital generation.

FUCEREP's past due loans ratio had historically been well
contained (average of 6.33% in 2010 - 2015), benefitting from the
payroll deduction mechanism of around 70% of its portfolio.
However, its asset quality indicators have rapidly deteriorated
since 2014 and its past due loans ratio rose and peaked at 15.49%
at Sept. 30, 2017, which then declined to 12.37% at March 31,
2018. Asset quality has been affected by the economic slowdown,
sluggish loan growth, and the operational problems generated by
the troublesome implementation of a new core system that prevented
management from focusing on growing the cooperative's business and
controlling its credit risk.

Fitch expects past due loans to remain high due to the entity's
plans to expand to riskier segments; however this should be partly
compensated by measures taken in 2017 by the cooperative to
control the rise in NPLs and improve collections, which have
already started to bear fruit) and by the economic recovery
expected for 2018 and 2019.

KEY RATING DRIVERS - SUPPORT RATING AND SUPPORT RATING FLOOR

FUCEREP's Support and Support Rating Floor of '5' and 'NF',
respectively, reflects Fitch's opinion that extraordinary
government support if needed, although possible, cannot be relied
upon given its small size and deposit market share.

RATING SENSITIVITIES

IDRs AND VR

The Outlook on FUCEREP's IDRs and VR is Stable. Sustained
progresses in its profitability metrics, with ROA consistently
remaining above 1%, together with asset quality and capitalization
remaining at adequate levels (FCC improving and remaining above
20%) could lead to positive rating actions.
FUCEREP's ratings could be downgraded if it fails to restore its
profitability and this, together with further material
deterioration in asset quality lead to its Fitch Core Capital
ratio falling and remaining below 12%.

RATING SENSITIVITIES -SUPPORT AND SUPPORT RATING FLOOR
Changes in the SR and SRF of FUCEREP are highly unlikely in the
foreseeable future.

Fitch has taken the following rating actions:
FUCEREP:
Long-term Foreign and Local Currency IDRs downgraded to 'B-' from
'B'; Outlook revised to Stable;
Viability rating downgraded to 'b-' from 'b'
Support rating affirmed at '5';
Support rating floor affirmed at 'NF'.


ODEBRECHT ENGENHARIA: Fitch Cuts Long-term IDR to 'C'
-----------------------------------------------------
Fitch Ratings has downgraded Odebrecht Engenharia e Construcao
S.A.'s (OEC) Long-Term (LT) Foreign and Local Currency Issuer
Default Rating (IDR) to 'C' from 'CC'. The rating action also
affects Odebrecht Finance Ltd.'s (OFL) senior unsecured notes'
rating, which has been downgraded to 'C'/'RR4' from 'CC'/'RR4'.

The downgrade to 'C' follows OEC's announcement that it will use
part of the 30-day grace period before making the principal
amortization of the BRL500 million senior unsecured notes due
April 25, 2018. The USD11 million coupon payment of the 2025
senior unsecured bonds has also entered in the cure period.

EC mentioned its parent Odebrecht S.A. (ODB) is attempting to
obtain a loan. Proceeds from this loan would be injected into OEC
during the cure period, allowing it to cover all debt service in
2018 and build cash for working capital. OEC's amortizations and
coupon payments total BRL500 million (USD143 million) and USD200
million, respectively, of which USD30 million have already been
paid. This potential capital increase would not be deducted from
the USD330 million intercompany loan that ODB owes to OEC, which
Fitch sees as a positive signal.

KEY RATING DRIVERS

Not applicable.


DERIVATION SUMMARY

Not applicable.


KEY ASSUMPTIONS

Not applicable.


RATING SENSITIVITIES

Developments That May, Individually or Collectively, Lead to
Positive Rating Action
--Amortization of the BRL500 million 2018 bonds and payment of
the USD11 million coupon of the 2025 would bring corporate ratings
back to the 'CC'.

Developments That May, Individually or Collectively, Lead to
Negative Rating Action
--Extending the payment delay for more than 30-days would lead
corporate ratings to 'RD';
--Filling for bankruptcy protection would lead corporate ratings
to 'D'.


LIQUIDITY

The company has a poor liquidity position relative to its debt
obligations, which has prevented it from making its bond payments
in a timely manner. As of Sept. 30, 2017, the company had BRL2.2
billion (USD700 million) of cash.


FULL LIST OF RATING ACTIONS

Fitch has downgraded the following ratings:

Odebrecht Engenharia e Construcao S.A.

--Long-Term Foreign and Local-Currency IDRs to 'C' from 'CC';
--National Scale Rating to 'C(bra)' from 'CC(bra)'.

Odebrecht Finance Limited
--BRL500 million senior unsecured notes due 2018 to 'C/RR4' from
'CC/RR4';
--USD500 million senior unsecured notes due 2020 to 'C/RR4' from
'CC/RR4';
--USD600 million senior unsecured noted due 2022 to 'C/RR4' from
'CC/RR4';
--USD800 million senior unsecured notes due 2023 to 'C/RR4' from
'CC/RR4';
--USD550 million senior unsecured notes due 2025 to 'C/RR4' from
'CC/RR4';
--USD500 million senior unsecured notes due 2029 to 'C/RR4' from
'CC/RR4';
--USD850 million senior unsecured notes due 2042 to 'C/RR4' from
'CC/RR4';
--USD750 million perpetual bonds to 'C/RR4' from 'CC/RR4'.


PROVINCIA CASA: Fitch Affirms Long-term IDRs at B, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed Provincia Casa Financiera's (Provincia)
long-term, foreign-currency and long-term, local-currency Issuer
Default Ratings (IDRs) at 'B'.

KEY RATING DRIVERS - IDRs

Provincia is a branch of Banco de la Provincia de Buenos Aires
(BAPRO) and part of the same legal entity. Therefore, Provincia's
IDRs reflect Fitch's opinion of BAPRO's financial and business
profile, which are highly influenced by its leading franchise and
systemic importance as the second largest bank in terms of
deposits and the third in loans in Argentina. Fitch also considers
the bank's good asset quality, ample liquidity, moderate
profitability and low capital base.

In addition, BAPRO and Provincia are wholly-owned by the
government of the Province of Buenos Aires. BAPRO's liabilities
(including those of its branches abroad) are fully guaranteed by
the government of the Province of Buenos Aires.

In Uruguay, Provincia is small due to its narrow business focus.
Its legal status is a casa financiera, which differs from a
banking license because it is not allowed to raise residents'
deposits and has much lower regulatory costs. However, in terms of
regulatory capital limits, Provincia has to comply with the rules
applied to banks.

Provincia is fully integrated with its head office's strategies,
corporate governance practices and risk management procedures. It
operates through one office and reports to the International
Division of BAPRO.

Provincia has improving profitability, low credit risk, a highly
liquid balance sheet and adequate capitalization metrics. The
branch's current business plan aims to improve its profitability
mainly through a more active pricing policy, improving its cost
efficiency, more active management of its trading portfolio and
loan growth.
RATING SENSITIVITIES

Provincia's IDRs are sensitive to changes in BAPRO's financial and
business profile.

Fitch has affirmed the following ratings:

Provincia Casa Financiera:

--Long-term, foreign-currency IDR at 'B'; Outlook Stable;
--Long-term, local-currency IDR at 'B'; Outlook Stable.

At the same time, Fitch has withdrawn the Support Rating of '5' as
Fitch understands that a support rating in this case does not
provide a relevant credit opinion given that Provincia is a full
branch of BAPRO.


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


DOMINICAN REPUBLIC: AEIH OKs China Ties But Demand Transparency
---------------------------------------------------------------
Dominican Today reports that the Herrera and Santo Domingo
Province Industries Association (AEIH) called the new diplomatic
ties with China "an opportunity to generate productive bonds of
great impact in tourism, the chain of manufacturing, investment
and the energy sector."

However, AEIH president Antonio Taveras Guzman urged the Govt. to
guarantee transparent productive relations and respect for the
institutions of both countries and advised drafting clear and
effective strategies to take advantage of the new relationship
without converting them in "another source of debt," according to
Dominican Today.

He noted that Dominican Republic's geographical location can
become a great asset for China's trade, facilitating the shipment
of its products to other markets such as the United States, the
report relays.

"The economy's globalization is irreversible. This country must
continue to integrate into the large markets, locating and
strengthening its greatest potential and, above all, applying the
necessary changes in its Productive Development Model to generate
connections and improve its competitive capacity," Mr. Taveras
said in a statement obtained by the news agency.

As reported in the Troubled Company Reporter-Latin America on
April 23, 2018, S&P Global Ratings affirmed its 'BB-/B' long- and
short-term sovereign credit ratings on the Dominican Republic.
The outlook remains stable. The transfer and convertibility (T&C)
assessment is unchanged at 'BB+'.


DOMINICAN REPUBLIC: Official Refutes 'Danger' Allegation Over Fund
------------------------------------------------------------------
Dominican Today reports that Pensions (SIPEN) superintendent Ramon
E. Contreras refuted statements by the Dominican Pension Fund
Administrators Association (ADAFP) that the pension fund's assets
are in danger.

The official said he sees no basis for those statements and
stressed that the Dominican pension system has a "robust legal
framework in constant and progressive development that clearly
defines the roles set for the SIPEN," in its responsibility to
safeguard the best interests of its affiliates, according to
Dominican Today.

"It's the duty of all the actors within the Dominican Pension
System to bring to the citizens truthful messages that guarantee
security and tranquility regarding our work, thus preserving the
positioning that we have reached until now," Mr. Contreras said
after reiterating that he disagrees with ADAFP's stance, the
report notes.

On March 18, the SIPEN announced that the Dominican workers'
pension fund stood at US$10.6 billion at yearend 2017, the report
adds.

As reported in the Troubled Company Reporter-Latin America on
April 23, 2018, S&P Global Ratings affirmed its 'BB-/B' long- and
short-term sovereign credit ratings on the Dominican Republic.
The outlook remains stable. The transfer and convertibility (T&C)
assessment is unchanged at 'BB+'.


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


HUMANA HEALTH: S&P Cuts Financial Strength Rating to 'B+'
---------------------------------------------------------
S&P Global Ratings lowered its long-term counterparty credit and
financial strength ratings on Humana Health Plans of Puerto Rico
Inc. (HHPR) to 'B+' from 'BB+'. The ratings remain on CreditWatch
with negative implications. S&P's 'BBB' long-term counterparty and
financial strength ratings on HHPR's sister company, Humana
Insurance of Puerto Rico Inc., which is well-capitalized, are
unaffected by this action, however, those ratings also remain on
CreditWatch with negative implications.

The downgrade reflects HHPR's continued pretax operating losses
and weakening capitalization. Medical utilization typically
softens for most health insurers immediately following hurricanes
and other natural catastrophes. HHPR, however, did not experience
this after Hurricanes Irma and Maria. In 2017, HHPR reported a
pretax operating loss of $12.9 million following a loss of $33.0
million in 2016. Based on year-to-date results, we now expect HHPR
to report a pretax operating loss of $5 million-$15 million in
2018.

S&P said, "We expect to reassess the CreditWatch placement during
the next 90 days based on HHPR's earnings capital development. If
HHPR's earnings remain unfavorable and its RBC approaches 100%-
150%, we would likely lower our ratings to 'B' to lower."


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


VENEZUELA: Authorizes Exchange Offices for Remittances
------------------------------------------------------
EFE News reported on May 3 that Venezuela's vice president said
the government had given the green light for the opening of
exchange offices to enable people to legally receive remittances
sent from abroad, as well as carry out other transactions to be
specified in the coming hours.

President Nicolas Maduro's administration has authorized the
opening in the coming hours of exchange houses throughout the
Caribbean nation, Tareck El Aissami said in a televised address,
according to EFE News.

As reported in the Troubled Company Reporter-Latin America on
March 13, 2018, Moody's Investors Service has downgraded the
Government of Venezuela's foreign currency and local currency
issuer ratings, foreign and local currency senior unsecured
ratings, and foreign currency senior secured rating to C from
Caa3. Concurrently, the foreign currency senior unsecured medium
term note program has also been downgraded to (P)C from (P)Caa3.
The outlook has been changed to stable from negative.


VENEZUELA: Failed to Implement Remedial Measures, Says IMF
----------------------------------------------------------
On May 2, 2018, the Executive Board of the International Monetary
Fund (IMF) met to consider the issue of Venezuela's provision of
core macroeconomic data to the Fund. The Board noted that adequate
data provision was an essential first step to understanding
Venezuela's economic crisis and identifying possible solutions.

At the meeting, the Executive Board considered a report presented
by the Managing Director on progress in implementing the remedial
measures approved on November 3, 2017, for the failure by
Venezuela to provide data to the Fund that is required under
Article VIII, Section 5 of the Fund's Articles of Agreement (see:
Statement by the IMF Executive Board on Venezuela). The Board
found that Venezuela has not implemented the remedial measures and
has failed to provide information on a number of additional items
as required. The Fund has issued a declaration of censure against
Venezuela for its failure to implement these remedial measures and
its failure to comply with its obligation under Article VIII,
Section 5.

The Executive Board called on Venezuela to adopt specific remedial
measures and will meet again within 6 months to consider
Venezuela's progress in implementation.

The Fund stands ready to work constructively with Venezuela toward
resolving its economic crisis when it is prepared to re-engage
with the Fund, including through timely and regular data provision
and the resumption of Article IV consultations."

As reported in the Troubled Company Reporter-Latin America on
March 13, 2018, Moody's Investors Service has downgraded the
Government of Venezuela's foreign currency and local currency
issuer ratings, foreign and local currency senior unsecured
ratings, and foreign currency senior secured rating to C from
Caa3. Concurrently, the foreign currency senior unsecured medium
term note program has also been downgraded to (P)C from (P)Caa3.
The outlook has been changed to stable from negative.


                            ***********


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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