TCRLA_Public/180511.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

               Friday, May 11, 2018, Vol. 19, No. 93


                            Headlines



A R G E N T I N A

BANCO PATAGONIA: S&P Affirms B+/B Currency Ratings, Outlook Stable
BUENOS AIRES: Fitch Affirms 'B' Issuer Default Ratings


B E R M U D A

CENTRAL EUROPEAN: Moody's Hikes CFR to B1, Outlook Pos.


B R A Z I L

CHEMICAL X: Moody's Rates Subordinate Mezzanine Shares (P) B2
JBS SA: Expands Sao Paulo Ground Beef Production
JBS SA: Approves 2017 Financial Statements, $36 Million Dividend


C O L O M B I A

FRONTERA: Fitch Affirms B+ Issuer Default Ratings, Outlook Stable


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Politics Weigh in Cabinet Shuffle


J A M A I C A

JAMAICA: More Regulations in the Making for Petroleum Industry


M E X I C O

MONTERREY MUNICIPALITY: Moody's Hikes Issuer Rating to Ba1


P U E R T O    R I C O

PUERTO RICO: US-Dominican Lawmakers Want Tariff-Free Steel


                            - - - - -


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A R G E N T I N A
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BANCO PATAGONIA: S&P Affirms B+/B Currency Ratings, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings affirmed its 'B+' long-term and 'B' short-term
local currency and foreign currency ratings on Banco Patagonia
S.A. The outlook remains stable.

S&P said, "We are affirming our rating on Banco Patagonia because
its profitability has remained above the system average, and it's
showed stable credit fundamentals. Banco Patagonia has a
satisfactory competitive position within the Argentine financial
system and sound profitability, both of which good efficiency
metrics and low funding costs explain. Its low funding costs stem
from its share of sight deposits. We expect its risk-adjusted
capital (RAC) ratio to average 6.7% over the next 12-18 month. In
addition, we believe the bank continues to adequately manage its
risks, with low complexity of operations, manageable
concentration, and asset quality metrics that are in line with the
system average." The entity benefits from a funding structure
that's mostly comprised by a healthy low-cost deposit base, and
from a sound liquidity position that is in line with its local
peers and incorporates characteristics of Argentina's financial
system

The ratings on Argentina continue to limit the ratings on the
bank. S&P rarely assigns an issuer credit rating on a bank above
the sovereign rating because the bank would have to demonstrate
the capacity to maintain sufficient capital and liquidity to cover
the significant stress that accompanies a sovereign default.

The stable outlook on Banco Patagonia for next 12 months mirrors
that on the sovereign. Additionally, S&P expects the bank's
profitability metrics to remain higher than the industry average
with an RAC ratio of 6.7%.


BUENOS AIRES: Fitch Affirms 'B' Issuer Default Ratings
------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) on six Argentine local and
regional governments (LRGs) at 'B'. The Rating Outlooks have been
revised to Stable from Positive.

The LRGs include: City of Buenos Aires, Provinces of Cordoba, La
Rioja, San Juan, Santa Fe, and the Municipality of Cordoba.

KEY RATING DRIVERS

These rating actions follow Fitch's May 4, 2018, revision of
Argentina's 'B' sovereign ratings Outlook to Stable from Positive.
The revision of Argentina's Outlook to Stable from Positive
reflects macroeconomic policy frictions and political headwinds
that have intensified beyond Fitch's prior expectations,
highlighting risks surrounding the gradual policy adjustment
process. Fitch expects policy adjustments underway to progress
despite recent political noise and market volatility, gradually
reducing still high inflation and fiscal imbalances, and
supporting a stronger and more stable growth outlook.
Nevertheless, recent developments have highlighted the
vulnerability of the current policy strategy amid market sentiment
and political support.

RATING SENSITIVITIES

The ratings of City of Buenos Aires, Municipality of Cordoba,
Province of San Juan, Cordoba, Santa Fe, and La Rioja are
constrained by the sovereign rating. Consequently, any positive or
negative rating action on Argentina's rating would directly impact
their ratings in the same direction.

Fitch has affirmed the following ratings and revised their Rating
Outlooks to Stable from Positive:

City of Buenos Aires
  --Long-Term Foreign and Local Currency Issuer Default Ratings
(IDRs) at 'B'.

Province of Cordoba
  --Long-Term Foreign and Local Currency IDRs at 'B'.

Province of La Rioja
  --Long-Term Foreign and Local Currency IDRs at 'B'.

Province of San Juan
  --Long-Term Foreign and Local Currency IDRs at 'B'.

Province of Santa Fe
  --Long-Term Foreign and Local Currency IDRs at 'B'.

Municipality of Cordoba
  --Long-Term Foreign and Local Currency IDRs at 'B'.


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B E R M U D A
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CENTRAL EUROPEAN: Moody's Hikes CFR to B1, Outlook Pos.
-------------------------------------------------------
Moody's Investors Service has upgraded Central European Media
Enterprises Ltd.'s (CME) Corporate Family Rating (CFR) to B1 from
B2 as well as its Probability of Default Rating (PDR) to B1-PD
from B2-PD. The outlook on the ratings is positive.

The rating action follows the company's announcement in late April
2018 that in Q2 2018 it intends to apply USD100.9 million of
proceeds from warrants recently exercised by Time Warner, along
with the company's excess cash, to repay EUR110.0 million of the
outstanding principal balance of the 2018 Euro Term Loan.
Concurrent with this announcement, the company also announced an
amendment to their existing term loan package which re-prices and
extends the maturities of those loans, which reduces the borrowing
costs, extends a majority of its debt maturities by at least two
years and improves the company's liquidity.

"The ratings upgrade and the positive outlook principally reflects
the continued decrease in leverage achieved by CME as well as its
continued solid operating performance which we expect will persist
over the next couple of years," says Alejandro Nunez, a Moody's
Vice President -- Senior Analyst and lead analyst for CME.
Including results from the CME's Croatian and Slovenian
subsidiaries that are slated for divestiture, Moody's estimates
that the company's Gross Debt/EBITDA (Moody's-adjusted) will
decrease from 6.0x (as of 31 December 2017) to 5.1x as a result of
the EUR110 million debt repayment and, furthermore, expects it to
decline toward 4.4x by year-end 2018 (excluding any debt repayment
sourced from a pending asset sale). This gross leverage level
could improve further to 3.4x by year-end 2018 if CME's pending
sale of its Croatian and Slovenian subsidiaries completes in mid-
2018.

RATINGS RATIONALE

CME's EUR110 million debt repayment in Q2 2018, which follows two
other voluntarily prepayments of the 2018 Euro Term Loan totaling
EUR100 million and paid in August 2017 and February 2018,
reinforces the company's deleveraging track record since early
2015 and tangibly demonstrates the company's stated commitment to
a significantly lower leverage profile. As a consequence of the
recent debt reduction and the April 2018 refinancing, CME's
average cost of borrowing has declined by approximately 200 basis
points, to a 4.0% weighted average borrowing cost from 6.0% at
year-end 2017, resulting in annual interest cost savings of
approximately USD25 million relative to 2017 levels.

Aside from the debt reduction resulting from the recent repayment
of principal of the 2018 term loan, Moody's anticipates that CME's
improving free cash flow post transaction will allow it to
deleverage further, toward 4.2x Moody's-adjusted gross leverage,
by year-end 2018 and to comfortably reach its credit metric
parameters for the current B1 rating. In addition, CME expects a
pending divestiture of its Croatian and Slovenian subsidiaries
will close in Q2 2018, subject to remaining regulatory approvals
and other customary closing conditions. CME has stated it intends
to apply the EUR230 million of expected proceeds from this
divestiture to repay debt. Together with the April 2018 debt
refinancing, that debt reduction would further decrease the
company's borrowing costs by 80 basis points to approximately
3.2%. Pro forma for that debt reduction, CME's gross leverage
would decline toward 3.4x and its Free Cash Flow / Gross Debt
(both Moody-adjusted) would increase to around 12% by year-end
2018.

CME's B1 CFR reflects: (1) the company's significant progress in
its operational and financial turnaround since early 2014 and the
generation of positive free cash flow (FCF) in 2015-2017; (2) the
fact that Time Warner Inc. (Time Warner, Baa2 stable) has
maintained a majority economic ownership in CME since 2014, during
which time it has extended tangible support to CME; (3) the
positive trends in CME's advertising markets, which have enabled
deleveraging, and our expectation that these markets will be
stable over the coming 12-18 months; and, (4) the benefits of
refinancing transactions in February 2016, March 2017 and April
2018 - which replaced CME's most expensive debt instruments,
extended the company's debt maturities, and reduced its interest
costs and foreign-exchange risk - and the potential for further
deleveraging which CME could achieve using proceeds from the
intended sale of its Croatian and Slovenian subsidiaries.

However, the B1 CFR also considers: (1) the company's historically
volatile operating performance, driven by the cyclical nature of
its advertising-dependent end markets; and (2) modest non-
advertising revenues offset to an extent by a strategy to
gradually increase carriage fees and subscription revenues.

Moody's considers CME's liquidity position to be good for its
near-term operational and financing needs. As of March 31, 2018,
the company had cash and cash equivalents of USD74 million and we
anticipate the company will generate around USD100 million of free
cash flow over the next 12 months. The company has full
availability under its amended revolving credit facility of USD75
million whose maturity was extended to 2023 as part of the debt
refinancing in April 2018. CME expects to fully repay by year-end
2018 the EUR41 million of outstanding principal remaining on its
term loan maturing in May 2019. Following that repayment, the
company's remaining debt principal of just over EUR700 million is
scheduled to mature between November 2021 and April 2023.

RATIONALE FOR POSITIVE OUTLOOK

The positive outlook reflects an expectation of a further material
decline in CME's financial debt and our expectation of continued
operating momentum, which will bolster the company's key leverage
and cash-flow-coverage metrics over the next 12 months toward the
stronger end of the expected ranges for the current rating.

WHAT COULD CHANGE THE RATING UP / DOWN

The rating could move upward if CME's adjusted gross debt/EBITDA
(Moody's-adjusted) declines toward 3.5x and its adjusted FCF/gross
debt increases sustainably into the 7-10% range. Conversely, the
rating could move downward if: (1) CME's earnings or liquidity
deteriorate; (2) Free Cash Flow (FCF)/Gross Debt (Moody's-
adjusted) is not sustainably maintained above 5%; or (3) it is
unable to maintain leverage (gross debt/EBITDA as adjusted by
Moody's) below 5.0x. Any indication of a weakening of material
support from Time Warner could also be credit negative.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Media Industry
published in June 2017.

CME is a Bermuda-incorporated media and entertainment company. It
has broadcast operations in six Central and Eastern European (CEE)
countries -- the Czech Republic, Romania, Slovakia, Bulgaria,
Slovenia and Croatia -- with an aggregate population of around 50
million people. Launched in 1994, CME operates 36 television
channels. In 2017, the company reported net revenues of $701
million and operating income before depreciation and amortization
(OIBDA) of $188 million (including results from CME's Croatian and
Slovenian subsidiaries slated for divestiture). CME's shares trade
on the NASDAQ stock market and the Prague Stock Exchange. Time
Warner, which owns a 45.5% voting interest and a 76% fully diluted
economic interest in CME, is the company's largest shareholder.


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B R A Z I L
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CHEMICAL X: Moody's Rates Subordinate Mezzanine Shares (P) B2
-------------------------------------------------------------
Moody's America Latina has assigned provisional ratings of (P)
Baa3 (sf) (Global Scale, Local Currency) and (P) Aaa.br (sf)
(Brazilian National Scale) to the senior shares, and (P) B2 (sf)
(Global Scale, Local Currency) and (P) Ba1.br (sf) (Brazilian
National Scale) to the subordinate mezzanine shares to be issued
by Chemical X - FIDC Industria Petroquimica, a revolving
securitization backed by a pool of trade receivables originated by
Braskem S.A. (Ba1 stable).

Issuer: Chemical X - FIDC Industria Petroquimica (Chemical X -
FIDC)

Senior Shares - (P) Baa3 (sf) (Global Scale, Local Currency) and
(P) Aaa.br (sf) (Brazilian National Scale)

Subordinated Mezzanine Shares - (P) B2 (sf) (Global Scale, Local
Currency) and (P) Ba1.br (sf) (Brazilian National Scale)

RATINGS RATIONALE

Chemical X - FIDC is a close-ended FIDC and will have a final
legal maturity of 60 months from closing. Moody's assigned
provisional ratings to the senior shares and to the mezzanine
shares. The senior shares and the mezzanine shares accrue, on a
daily basis, a floating rate of interest equivalent to the DI rate
(Brazilian interbank rate) plus a fixed spread to be determined at
closing.

Moody's bases the ratings on the following factors:

  - Credit enhancement in the form of subordination for senior
shares ranging from 9.09% to 13.04% to mitigate losses due to
obligor default or dilution. The minimum subordination level for
the mezzanine shares is 2%.

  - The adequate eligibility criteria of the trade receivables,
represented by electronic invoices to be acquired by the issuer,
which include concentration limits by client, delinquency by
client and maximum term of the trade receivables. The maximum
individual obligor concentration limit is 3%

  - Low and stable historical delinquency and dilution levels of
the sellers' trade receivables portfolio.

  - Very low commingling risk as payments by obligors are made
directly to the fund's segregated account that it maintains at
Banco Bradesco S.A. (Ba2 long-term bank deposit rating, Global
Scale, Local Currency; and Aa1.br, Brazilian National Scale)

  - Braskem's sound track record sponsoring and servicing
securitization transactions and the stable performance of these
previous transactions. Chemical X -- FIDC is Braskem Group's tenth
securitization of its trade receivables portfolio. The performance
of past transactions has been in line with the original
assumptions that Moody's used to rate the transactions.

During the initial 54-months of the transaction, the fund will not
make principal payments to the senior and mezzanine shares and
interest payments will be paid on a semin-annual basis. After the
end of the grace period, the trasaction will enter a final 6-month
amortization period, when it will make monthly principal and
interest payments. Senior and mezzanine shares will follow the
same amortization schedule.

Amortization payments to the mezzanine shares will only be allowed
(1) after the fund has made the scheduled senior amortization
payments; and (2) as long as the fund maintains the minimum senior
subordination ratio. As long as there are senior and mezzanine
shares outstanding, partial amortization payments to junior
subordinated shares are allowed upon a unanimous concent of all
subordinated shares investors, provided that the minimum
subordination level for senior and mezzanine shares is met.

Commingling risk is mitigated because obligors are instructed to
pay directly into a segregated account in the name of the fund by
means of pay slips that Banco Bradesco and other selected
collection banks generate. The seller must remit any monies they
receive to the segregated account within two business days. A non-
automatic acceleration event (evento de avaliacao) is triggered if
payments made directly to the seller's account are higher than 5%
of fund's net assets. The seller will act as primary servicer.

Moody's analyzed the seller's receivables pool for the 36-month
period reviewed by E&Y starting in October 2014 and ending in
September 2017. During this period, Braskem generated BRL 95.4
billion of trade receivables from approximately 1,019,180 separate
invoices. As modeling input assumptions, Moody's used a central
mean of 0.30% monthly dilutions and 0.11% monthly losses over the
outstanding balance, and it assumed portfolio turnover of 30 days.
Moody's calculated loss assumptions using as a proxy delinquencies
from 91 to 120 days past due receivables over the total pool.

Moody's sensitivity analysis provides a quantitative, model-
indicated calculation of how Moody's rating of a structured
finance security could vary if certain input parameters used in
the initial rating process differed. Moody's key ratings model
assumptions for this transaction are Braskem's rating, loss rate
and dilution rate.

Stress scenarios:

If Moody's downgraded Braskem's rating to Ba2 from Ba1 and the
loss rate and dilution rate doubled, the ratings on the senior and
mezzanine shares would remain the same.

Factors that would lead to a downgrade of the rating:

Factors that may lead to a downgrade of the ratings include an
increase in defaults and dilution levels beyond the level Moody's
assumed when rating this transaction and a deterioration in the
credit quality of Braskem. The performance of Braskem's trade
receivables, may be affected, among other factors, by
international competition in the petrochemical industry and a
severe economic downturn.

The principal methodology used in these ratings was "Moody's
Approach to Rating Trade Receivables-Backed Transactions"
published in May 2015.


JBS SA: Expands Sao Paulo Ground Beef Production
------------------------------------------------
meatpoultry.com reports that rising demand for ground beef in the
foodservice industry prompted JBS S.A. to expand production of
ground beef at two of the company's processing plants in the state
of Sao Paulo at a cost of BRL13 million (US$3.66 million).

The company recently invested BRL9 million in its facility in Lins
to raise production by 30 percent, according to meatpoultry.com.
Another BRL4 million was invested at a plant in Osasco.

In a statement, the company said the investments ". . . were
focused on modernizing production lines to meet customers'
stringent quality criteria.  In addition to acquiring new
equipment and making structural changes to accommodate the
machinery, the Lins plant has created an extra shift to boost
output and hired another 130 staff," the report relays.

JBS S.A. added that the company intends to continue expanding its
retail and foodservice operations through ongoing enhancement to
plant efficiencies while maintaining quality standards to meet
customers' expectations, the report adds.

As reported in the Troubled Company Reporter-Latin America on
April 23, 2018, S&P Global Ratings placed its ratings on JBS S.A.
(JBS) and JBS USA Lux S.A. (JBS USA), including its 'B' corporate
credit ratings, on CreditWatch with developing implications.


JBS SA: Approves 2017 Financial Statements, $36 Million Dividend
----------------------------------------------------------------
Ana Mano at Reuters reports that shareholders of Brazilian meat
processor JBS SA approved the company's 2017 financial statements
along with dividend payments at a meeting, according to a
securities filing.

The approved dividend amount will be 0.04677553 per share,
totaling BRL126.8 million ($36.15 million) due on June 26, JBS
said, according to Reuters.

JBS shareholders also gave the green light to changes in the
company's bylaws to comply with recommendations from stock
exchange operator B3 SA, which will come into effect in 2020, the
report notes.

JBS, the world's largest meatpacking firm, also said shareholders
approved the composition of its board of directors and fiscal
council, the report relays.

The meeting had participation of more than 85 percent of the
company's shareholders, the statement said, Reuters relates.

As reported in the Troubled Company Reporter-Latin America on
April 23, 2018, S&P Global Ratings placed its ratings on JBS S.A.
(JBS) and JBS USA Lux S.A. (JBS USA), including its 'B' corporate
credit ratings, on CreditWatch with developing implications.


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C O L O M B I A
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FRONTERA: Fitch Affirms B+ Issuer Default Ratings, Outlook Stable
-----------------------------------------------------------------
Fitch Ratings has affirmed Frontera Energy Corporation's long-term
Foreign and Local Currency Issuer Default Ratings (IDRs) at 'B+'.
Fitch has also downgraded the company's USD250 million of senior
secured notes to 'B+'/'RR4' from 'BB-'/'RR3' and removed the notes
from Rating Watch Negative. The Rating Outlook is Stable.

The downgrade of the senior secured notes follows the finalization
of Fitch's Country-Specific Treatment of Recovery Ratings
Criteria, published in April 2018. As a result of the revised
criteria, the Recovery Rating for Colombian corporate issuers is
capped at 'RR4' constraining the upward notching of issue ratings
in countries with a less reliable legal environment.

The affirmation of the IDRs reflects Frontera's operational and
financial performance stability after completing a significant
debt restructuring towards the end of 2016, which significantly
altered the company's capital structure. The company's ratings
remain constrained by its relatively small scale of production,
low asset diversification and short reserve life. Fitch
anticipates a more aggressive investment strategy through the
medium term to help improve Frontera's production profile and
reserve life. This will likely result in negative FCF through much
of the rating horizon, mitigated by an exceptionally strong
capital structure among peers and robust liquidity.

KEY RATING DRIVERS

Reserve Concentration: Frontera's production and reserves are
concentrated in a few blocks, most of which are in Colombia, and
its reserve life is short, with 1P reserves of 4.5 years and 2P
reserves of six years. The company's reduced investment capacity
due to the low price environment has forced it to curtail its
investments international assets, Fitch expects that Frontera's
concentration in Colombia could increase. The company's most
important properties are in Colombia, and the country accounted
for approximately 95% of its proved reserves. This limited
diversification exposes it to operational as well as economical
risks associated with small scale operations. As of December 2017,
it had net 1P and net proved and probable (2P) reserves, of
approximately 115 million and 154 million bbls.

Pressured FCF: Fitch expects Frontera's free cash flow to remain
pressured in the near term given robust capex requirements to
replenish reserves. A temporary slowdown in capex in 2017 resulted
in positive FCF of USD110 million for the year. Through the next
three years, however, Fitch expects consistently negative FCF as
Frontera implements a significant exploration and development plan
aimed at improving its reserve life and production profile. Higher
international oil prices should help reduce cash drain.

Slowly Improving Production Profile: In the medium term,
Frontera's net production is expected to recover to around 75
thousand barrels of oil equivalent per day (boe/d) from a peak of
approximately 150,000 boe/d reported prior to the expiration of
its main concession. The decrease in production is the result of
both the expiration of the Piriri-Rubiales concession in mid-2016
as well as contraction in investment that resulted from the
decline in oil price. The updated production prospects constrain
the company's rating to the 'B' category given the inherent
operational risks associated with a small scale oil and gas
production profile. Frontera's average production in 2017
decreased by approximately 12% to 70.1 thousand boe/d from 2016
production of 79.7 thousand boe/d, excluding Piriri-Rubiales
production.

Average Production and Replacement Costs: Frontera's competitive
position is considered average for the oil and gas industry and
the company's production costs are expected to marginally increase
from recently reported numbers as a result of the expected decline
in production and increase importance of production from frontier
fields. During 2017, Frontera's operating costs increased to
approximately USD26.1/boe from approximately USD23.6/boe yoy.
Going forward Fitch expects Frontera's operating costs to increase
close to historical levels, primarily as a result of smaller scale
of production as well as the loss of the Piriri-Rubiales
production, which lowered the company's average operating costs.

Improved Capital Structure and Liquidity: The company's capital
structure significantly improved post restructuring as Frontera's
creditors agreed to convert approximately USD5.4 billion of
financial debt into approximately 58% equity interest in the
company. The remaining equity interests is owned by Catalyst
group, which has a 29% interest for USD250 million capital
injection, and by a group of creditors that own 13% of it in
exchange having provided the USD250 million DIP financing.

DERIVATION SUMMARY

Frontera's credit profile compares well among other small
independent oil and gas companies in the region. Frontera
(B+/Stable), GeoPark Limited (B+/Stable), Gran Tierra Energy
International Holdings Ltd (B/Stable) and Compania General de
Combustibles S.A. (CGC: B/Negative) ratings are constrained to the
'B' category given the inherent operational risks associated with
small scale and low diversification of oil and gas production
profile.

Frontera's capital structure and liquidity position after the
reorganization is strong compared to peers in the category. As of
Dec. 31, 2017, the company reported negative net debt, with cash
on hand covering debt by 1.9x resulting in a net leverage of -
0.7x. On the same date, GeoPark's net leverage was 2.2x and cash
on hands cover more than six years of debt repayments while CGC's
net leverage stood at 6.3x and cash on hands covers no more than
four years of debt repayment.

Frontera benefits from its relatively larger production size
comparted to peers. Medium-term production expectation are in
excess of 70,000 boe/d, while GeoPark is expected to report an
average of 27,500 boe/d in 2017 and CGC marginally above 20,000
boe/d. Frontera's size advantage is mitigated by a comparatively
weak 1P reserve life of 4.5 years. Geopark's reserve life is 9.5
years, and its lower-rated peers, Gran Tierra and CGC, have
reserve lives of 5.9 years and 6.3 years, respectively.

KEY ASSUMPTIONS

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

  --Fitch's price deck for Brent oil prices of $57.50 on average
through the midterm;

  --Average Production of 74 thousand boed until 2022;

  --Production costs averaging USD31/barrel;

  --Average annual Capex of USD430 million.

KEY RECOVERY RATING ASSUMPTIONS

  --The recovery analysis assumes that Frontera would be
liquidated in bankruptcy;

  --Fitch has assumed a 10% administrative claim.

Liquidation Approach

  --The liquidation estimate reflects Fitch's view of the value of
inventory and other assets that can be realized in a
reorganization and distributed to creditors;

  --The 50% advance rate is typical of inventory liquidations for
the oil and gas industry.

  --The USD10 per barrel reflects the typical valuation of recent
reorganizations in the oil and gas industry. The waterfall results
in a 100% recovery corresponding to 'RR1' recovery for the senior
secured notes (USD250 million). The Recovery Rating is, however,
limited to 'RR4' due to the soft cap for Colombia.

RATING SENSITIVITIES

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

  --Sustained conservative capital structure with leverage below
2.0x and investment discipline;

  --Increase production size on a sustained basis above 75,000
boe/d, 1P Reserve life closer to 10 years, and a sustainable
strategy for maintaining reserve replacement at that level;

  --Increase in the company's asset diversification.

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

  --Deterioration of liquidity as a result of either more
aggressive than expected investments or dividend distribution
after current restrictions are lifted;

  --A reduction in the reserve replacement ratio that leads to
proved reserve life below 4.0 years.

LIQUIDITY

Strong Liquidity: Fitch views the company's liquidity position as
strong supported by cash on hand and manageable debt amortization
profile. As of December 2017, Frontera reported USD511 million of
cash on hand against post restructuring debt of USD250 million
senior secured notes due 2021 and capital leases of USD19 million.

Frontera's liquidity could remain relatively stable provided it
succeeds at running a break even cash flow over the next few
years. Liquidity could improve if it succeeds at selling some
none-core assets, although this is not incorporated into Fitch's
assumptions.

FULL LIST OF RATING ACTIONS

Fitch has taken the following rating actions:

Frontera Energy Corporation

  --Long-term Foreign Currency IDR affirmed at 'B+';

  --Long-term Local Currency IDR affirmed at 'B+';

  --Senior secured notes due 2021 downgraded to 'B+'/'RR4' from
'BB-'/'RR3' and removed from Rating Watch Negative.

The Rating Outlook is Stable.



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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: Politics Weigh in Cabinet Shuffle
-----------------------------------------------------
Dominican Today reports that President Danilo Medina appointed
Angel Estevez as Minister of the Environment, Osmar Benitez in
Agriculture; Rafael Sanchez Cardenas in Public Health and Eduardo
Selman in Culture.

Mr. Estevez, who was until now Minister of Agriculture, replaces
Francisco Dominguez, who resigned to seek the ruling party's (PLD)
presidential candidacy, according to Dominican Today.

The report notes that Mr. Benitez was executive president of the
Dominican Agribusiness Board (JAD).

The report relays that Medina executive order 168-18 appoints
Sanchez Cardenas to replace Altagracia Guzman, who resigned from
the post, and leaves Verges without functions.

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+'.


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J A M A I C A
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JAMAICA: More Regulations in the Making for Petroleum Industry
--------------------------------------------------------------
RJR News reports that more regulations are coming for the
operations of the local petroleum industry in order to ensure
increased compliance.

Energy Minister, Dr. Andrew Wheatley, says the regulations are
being drafted, according to RJR News.

This is in keeping with recommendations made by the Petroleum
Trade Reform Committee which investigated reports of contaminated
fuel in the local trade in December 2015, the report notes.

Wheatley who says there will be several changes, made the
disclosure while speaking at the second staging of the Jamaica
Gasolene Retailers' Association's trade show in New Kingston, the
report discloses.

The report relays that he indicated that the Government is seeking
to strengthen the current licensing mechanisms and penalties under
the Petroleum Act and Regulations to ensure the enforcement of
safety standards for the sector.

Meanwhile, the Energy Minister says the Jamaica Public Service
Company (JPS) is in the execution phase of its 190-megawatt
liquefied natural gas facility in Old Harbour Bay, St. Catherine,
the report says.

The project is being undertaken through the company's subsidiary,
South Jamaica Power Company, the report relays.

The US$331 million facility is scheduled to be commissioned by
June 2019, the report notes.

The new energy plant will allow the JPS to retire its ageing Old
Harbour Bay facility, adds the report.

As reported in the Troubled Company Reporter-Latin America on
Feb. 5, 2018, Fitch Ratings has affirmed Jamaica's Long-Term
Foreign-Currency Issuer Default Rating (IDR) at 'B' and has
revised the Rating Outlook to Positive from Stable.


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


MONTERREY MUNICIPALITY: Moody's Hikes Issuer Rating to Ba1
----------------------------------------------------------
Moody's de Mexico upgraded the issuer ratings of the Municipality
of Monterrey to Ba1/A1.mx from Ba2/A2.mx. The outlook remains
stable.

RATINGS RATIONALE

The upgrade reflects a significant improvement in Monterrey's
gross operating balance (GOB), a reduction in its debt burden over
the past three years and its solid liquidity.

The municipality's GOB averaged a high 12.7% of operating revenues
in 2016-2017, marking an improvement from previous years when its
operating balances were more volatile. Higher GOBs have mainly
been the result of very high increases in own source revenues and
strong growth in federal non earmarked transfers, which caused
Monterrey's operating revenue to rise 16.1% on average over the
past two years. Importantly, the municipality has implemented
various measures to increase tax collection that supported a 31%
rise in own source revenue in 2017. While operating expenditures
were contained until 2016, municipal elections scheduled for July
2018 are creating some spending pressures that will propel faster
growth in operating expenditures this year. Nonetheless, Moody's
estimates that Monterrey's GOB will remain solid and equivalent to
8% of operating revenues in 2018, still above Ba1-rated Mexican
peers.

Monterrey's debt burden is high but has decreased, with net direct
and indirect debt falling to 39.7% of operating revenue in 2017
from 51.7% in 2015. As a result of lower debt levels and a debt
refinancing carried out in 2017, debt service fell to 3.8% of
total revenue in 2017 from 8.6% in 2015. Given Monterrey's high
capacity to fund capital expenditures with available revenues,
Moody's expects debt levels to remain stable.

Monterrey's financial surpluses, which averaged 5.2% of total
revenues between 2015-2017, have also led to an improvement in its
liquidity. The municipality's cash equaled 2.4x its current
liabilities in December 2017, up from 0.5x in 2015. Moody's
expects Monterrey's ratio of cash to current liabilities will
remain above 1x in 2018 and 2019.

RATIONALE FOR THE STABLE OUTLOOK

The stable outlook reflects Moody's opinion that Monterrey will
maintain solid GOBs and liquidity levels and that debt to
operating revenues will remain around 40%.

WHAT COULD CHANGE THE RATING UP OR DOWN

Given the stable outlook, it is unlikely that the issuer rating
will change in the medium term. However, if the municipality
implements reforms that substantially reduce its unfunded pension
liability while maintaining strong operating balances, high
liquidity and stable debt levels, this could result in upward
pressure on the issuer rating. Conversely, a large deterioration
in the municipality's operating performance and liquidity combined
with a substantial rise in its level of indebtedness would exert
downward pressure on the issuer ratings.

The principal methodology used in these ratings was Regional and
Local Governments published in January 2018.

The period of time covered in the financial information used to
determine Municipality of Monterrey's rating is between January 1,
2013 and December 31, 2017.


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


PUERTO RICO: US-Dominican Lawmakers Want Tariff-Free Steel
----------------------------------------------------------
Dominican Today, citing EFE News, reports that Puerto Rico's
representative in the US House of Representatives, Jenniffer
Gonzalez, and Dominican-born US congressman, Adriano Espaillat,
asked Washington to exempt steel from the Dominican Republic from
federal taxes.

The objective is "to ensure that Puerto Rico has the necessary
resources in the reconstruction phase," says a letter sent to the
US Trade Representative Office and the Department of Commerce, "so
that it does not apply to the neighboring country, Section 232 of
the Commercial Expansion Act of 1962," according to Dominican
Today.

The Puerto Rican lawmaker referred to President Donald Trump's
Proclamation of March 8, 2018, which outlined the standards to
import steel to the US, the report notes.

The Dominican Republic has taken action against the illicit steel
and aluminum trade in its own market and to support the US's
efforts to address the overcapacity of the material before the
World Trade Organization, the report relays.

The US measure stipulates a tariff of 25 percent on products
imported from the Dominican Republic, the report adds.

                         About Puerto Rico

Puerto Rico is a self-governing commonwealth in association with
the United States that's facing a massive bond debt of $70
billion, a 68% debt-to-GDP ratio and negative economic growth in
nine of the last 10 years.

The Commonwealth of Puerto Rico has sought bankruptcy protection,
aiming to restructure its massive $74 billion debt-load and $49
billion in pension obligations.

The debt restructuring petition was filed by Puerto Rico's
financial oversight board in U.S. District Court in Puerto Rico
(Case No. 17-01578) on May 3, 2017, and was made under Title III
of 2016's U.S. Congressional rescue law known as the Puerto Rico
Oversight, Management, and Economic Stability Act ('PROMESA').

The Financial Oversight and Management Board later commenced Title
III cases for the Puerto Rico Sales Tax Financing Corporation
(COFINA) on May 5, 2017, and the Employees Retirement System (ERS)
and the Puerto Rico Highways and Transportation Authority (HTA) on
May 21, 2017. On July 2, 2017, a Title III case was commenced for
the Puerto Rico Electric Power Authority ("PREPA").

U.S. Chief Justice John Roberts has appointed U.S. District Judge
Laura Taylor Swain to oversee the Title III cases. The Honorable
Judith Dein, a United States Magistrate Judge for the District of
Massachusetts, has been designated to preside over matters that
may be referred to her by Judge Swain, including discovery
disputes, and management of other pretrial proceedings.

Joint administration of the Title III cases, under Lead Case No.
17-3283, was granted on June 29, 2017.

The Oversight Board has hired as advisors, Proskauer Rose LLP and
O'Neill & Borges LLC as legal counsel, McKinsey & Co. as strategic
consultant, Citigroup Global Markets, as municipal investment
banker, and Ernst & Young, as financial advisor.

Martin J. Bienenstock, Esq., Scott K. Rutsky, Esq., and Philip M.
Abelson, Esq., of Proskauer Rose; and Hermann D. Bauer, Esq., at
O'Neill & Borges are on-board as attorneys.

McKinsey & Co. is the Board's strategic consultant, Ernst &
Youngis the Board's financial advisor, and Citigroup Global
Markets Inc. is the Board's municipal investment banker.

Prime Clerk LLC is the claims and noticing agent. Prime Clerk
maintains a case web site at
https://cases.primeclerk.com/puertorico

Epiq Bankruptcy Solutions LLC is the service agent for ERS, HTA,
and PREPA.

O'Melveny & Myers LLP is counsel to the Commonwealth's Puerto Rico
Fiscal Agency and Financial Advisory Authority (AAFAF), the agency
responsible for negotiations with bondholders.

The Oversight Board named Professor Nancy B. Rapoport as fee
examiner and to chair a committee to review professionals' fees.

                    Bondholders' Attorneys

Kramer Levin Naftalis & Frankel LLP and Toro, Colon, Mullet,
Rivera & Sifre, P.S.C. and serve as counsel to the Mutual Fund
Group, comprised of mutual funds managed by Oppenheimer Funds,
Inc., and the First Puerto Rico Family of Funds, which
collectively hold over $4.4 billion of GO Bonds, COFINA Bonds,
and other bonds issued by Puerto Rico and other instrumentalities.

White & Case LLP and Lopez Sanchez & Pirillo LLC represent the UBS
Family of Funds and the Puerto Rico Family of Funds, which hold
$613.3 million in COFINA bonds.

Paul, Weiss, Rifkind, Wharton & Garrison LLP, Robbins, Russell,
Englert, Orseck, Untereiner & Sauber LLP, and Jimenez, Graffam &
Lausell are co-counsel to the ad hoc group of General Obligation
Bondholders, comprised of Aurelius Capital Management, LP,
Autonomy Capital (Jersey) LP, FCO Advisors LP, and Monarch
Alternative Capital LP.

Quinn Emanuel Urquhart & Sullivan, LLP and Reichard & Escalera are
co-counsel to the ad hoc coalition of holders of senior bonds
issued by COFINA, comprised of at least 30 institutional holders,
including Canyon Capital Advisors LLC and Varde Investment
Partners, L.P.

Correa Acevedo & Abesada Law Offices, P.S.C., is counsel to Canyon
Capital Advisors, LLC, River Canyon Fund Management, LLC, Davidson
Kempner Capital Management LP, OZ Management, LP, and OZ
Management II LP (the QTCB Noteholder Group).

                          Committees

The U.S. Trustee formed a nine-member Official Committee of
Retirees and a seven-member Official Committee of Unsecured
Creditors of the Commonwealth. The Retiree Committee tapped Jenner
& Block LLP and Bennazar, Garcia & Milian, C.S.P., as its
attorneys. The Creditors Committee tapped Paul Hastings LLP and
O'Neill & Gilmore LLC as counsel.


                            ***********


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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