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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                     L A T I N   A M E R I C A

             Thursday, May 17, 2018, Vol. 19, No. 97


                            Headlines



B R A Z I L

BANCO ABC: Fitch Affirms LT IDRs at 'BB', Outlook Stable
BANCO BOCOM: Fitch Affirms LT IDR at 'BB', Outlook Stable
BANCO DAYCOVAL: Fitch Affirms IDRs at 'BB-', Outlook Stable
BANCO INDUSTRIAL: Fitch Affirms IDRs at 'BB-', Outlook Stable
JBS SA: Brazilian Prosecutors Charge Shareholder With Corruption

JBS SA: Beats Estimates on Q1
USJ ACUCAR: Fitch Upgraded IDRs to CCC+; Removes Rating Watch Pos.


C A Y M A N  I S L A N D S

COMCEL TRUST: Fitch Affirms IDRs at 'BB+', Outlook Stable


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: To Pitch US$249.6MM Loan for SW Dam to Senate


M E X I C O

BANCA MIFEL: Fitch Hikes LT IDRs to BB+, Outlook Stable
BANCO VE POR: Fitch Affirms IDRs at 'BB', Outlook Stable
CAMPECHE MUNICIPALITY: Moody's Cuts Issuer Ratings to B2
ELEMENTIA: Fitch Affirms IDRs at 'BB+', Outlook Stable


P A R A G U A Y

TELEFONICA CELULAR: Fitch Affirms IDRs at 'BB+', Outlook Stable


T R I N I D A D  &  T O B A G O

CL FIN'L: Government Recovered Over $10 Billion From CLICO


V E N E Z U E L A

KELLOGG: Venezuela Seizes Facilities as Firm Abandons Caracas


                            - - - - -


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B R A Z I L
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BANCO ABC: Fitch Affirms LT IDRs at 'BB', Outlook Stable
--------------------------------------------------------
Fitch Ratings has affirmed Banco ABC Brasil S.A.'s (ABCBr) ratings
including its Long-Term (LT) Foreign Currency Issuer Default
Ratings (IDRs) at 'BB', LT Local Currency IDR at 'BB+' and LT
National Rating at 'AA+'(bra)'. The Rating Outlook on the LT IDRs
and LT National Rating is Stable.

KEY RATING DRIVERS

IDRS, NATIONAL RATINGS, SUPPORT RATING

The bank's IDRs are above ABCBr's Viability Rating (VR),
reflecting the expected institutional support that Fitch believes
ABCBr would receive from its parent, Arab Banking Corporation
B.S.C. (ABC, Long-Term IDR 'BBB-'/Stable Outlook).
The Stable Outlook on the IDRs is in line with that of the bank's
parent.

The bank's Support Rating of '3' reflects the expected support
from ABC, which is based in Bahrain. Given the subsidiary's
relevant contribution to the parent's revenues and the brand,
Fitch believes that, in the unlikely event it is needed, the
Brazilian subsidiary would likely receive support from its
majority shareholder.

VR

ABCBr's VR of 'bb- continues to be driven by the bank's credit
metrics that reflect a low risk profile, stable profitability,
stronger capitalization and liquidity and sound risk management.
The bank's profitability during 2017 and during the first three
months of 2018 remained satisfactory, despite lower NIMs and the
continued challenges of the operating environment.

The bank's credit metrics were aided in part by ABCBr's relatively
low funding costs, its strategic focus and the better asset
quality metrics when compared to some of its other competitors.
The bank's credit portfolio tenors continue to be conservatively
matched to the tenors of its funding, providing comfortable levels
of liquidity. ABCBr's ratings also reflect the well-positioned
franchise and its overall sound financial profile as a wholesale-
funded bank.

The bank operates under a well-defined strategy of providing
credit and other banking services mainly to the large corporate
segment (annual revenues over BRL800 million) and also corporates
(annual revenues between BRL100 million and BRL800 million).
ABCBr's VR rating remains constrained by ABCBR's company profile,
as its franchise does not compare as well to the larger retail
banks in Brazil in terms of credit and funding diversification.
This results in, among other things, a lower level of low-cost,
diversified deposit funding. Despite this, the bank maintains a
very strong liquidity position which enables lower funding costs.

The bank continues to focus on the business segments that it knows
well. To mitigate the impact of the continued uncertain operating
environment, management had, during the past few years, restricted
its on-balance-sheet loan portfolio exposure and growth, while at
the same time, increased the amount of credit offered through
guarantees. During 2017 ABCBr increased its loan portfolio to
corporates by nearly 28% while the on-balance sheet large
corporate loan exposure decreased by 4.2%. As of Dec. 31, 2017,
the corporate segment represented 17% of the expanded credit
portfolio, up from 14% a year earlier.

As of March 31, 2018, ROAE and ROAA were 13.0% and 1.5%,
respectively, slightly lower than the 13.6% and 1.6% ratios
reported at Dec. 31, 2017 due in part to lower net interest
income, lower Capital Markets and M & A fees and other unfavorable
effects of seasonality.

During the remainder of 2018 management expects to continue to
mitigate the pressured NIM by increasing fee revenues and lower
credit costs that are expected as a result of the anticipated
stronger operating environment. Fitch believes this expectation is
reasonable, however the higher levels of ROAE over 15% previously
seen in 2014-2016 may be difficult to reach before the end of 2018
given the uncertainties of an election year that are likely to
limit demand.

Also, during the last three years, the bank had benefitted from
reduced levels of competition while maintaining its conservative
underwriting, which is reflected in its low level of non-
performing loans (NPLs). As of Dec. 31, 2017, ABCBr reported a low
level of NPLs over 90 days (E-H) of 1.2%, while its impaired loan
ratio (D-H) improved to 5.2% from 5.9% a year earlier. The over 90
day ratio compares well to the banking system average. ABCBr's
smaller ratio is a reflection of the focus on lower-risk companies
and its conservative underwriting. The bank's loan loss reserve
coverage ratio on E-H loans remained strong at 3.3%.

During the first quarter of 2018 (1Q18), the impaired loans ratio
improved to 4.7% while the over 90-day NPL ratio improved to 0.7%.
The level of loan loss reserves now covers the over 90 day NPL by
4x. While expecting to see continued challenges with asset quality
in 2018, Fitch believes that the bulk of the impairments will be
due mostly to the continued weak operating environment. Fitch's
base case is that any deterioration should be easily absorbed by
the comfortable level of ABCBr's loan loss reserves.

The bank continues to focus on ensuring a stable liquidity
position through conservative asset liability management policies
to mitigate gaps through hedging and funding diversification.
Strategies include the sourcing of longer-term funding which
includes the use of longer-term instruments.

ABCBr continues to maintain satisfactory capital ratios. At Dec.
31, 2017, the Fitch core ratio (FCC) had remained relatively
stable at 14.0% (14.2% a year earlier). At March 31, 2018, the FCC
ratio remained relatively unchanged at 13.9%. The bank already
well-exceeds the Central Bank regulatory minimum total capital
requirement just by means of its 1Q18 Tier I regulatory capital
ratio of 13.8%. Fitch does not expect that ABCBr will have any
difficulty adjusting to the full implementation of Basel III
according to the Brazilian Central Bank's timetable. ABCBr had a
total Regulatory Capital ratio of 16.1% at the end of 1Q18.

RATING SENSITIVITIES

IDRS, NATIONAL RATING, SUPPORT RATING

The bank's IDRs and support rating could be impacted by a
deterioration of Arab Banking Corporation's rating as the support
rating is potentially sensitive to any change in assumptions
around the propensity and ability of Arab Banking Corporation to
provide timely support to the bank.

VR

Positive Rating Action: ABCBr's VR and its IDRs are constrained by
Brazil's operating environment; as a result, an upgrade of these
ratings is unlikely in the near future.

Negative Rating Action: Although unlikely in Fitch's view, a
significant deterioration of ABCBr's asset quality that results in
credit costs that severely limit its profitability and ability to
grow its capital, combined with a reduction in its liquidity or
capitalization position could lead towards a downgrade of the
bank's ratings. An unlikely decline in the FCC-to-risk-weighted
assets ratio below 10%, along with a reduction in operating
income-to-average asset ratio below 1.5% could result in a ratings
review. ABCBr's ratings could also be impacted by a further
deterioration in the Sovereign rating, as the bank is closely
linked with Brazil's operating environment.

NATIONAL RATING

Changes in ABCBr's IDRs or in the bank's credit profile relative
to its Brazilian peers could result in changes in its national
Ratings

Fitch has affirmed the following ratings:

Banco ABC Brasil:

  --Long-Term Foreign Currency IDRs at 'BB', Outlook Stable;

  --Long-Term Local Currency IDRs at 'BB+', Outlook Stable;

  --Short-Term Foreign and Local Currency IDRs at 'B';

  --Viability Rating at 'bb-';

  --Long-Term National rating at 'AA+(bra)', Outlook Stable;

  --Short-Term National rating at 'F1+(bra)';

  --Support Rating at '3'.


BANCO BOCOM: Fitch Affirms LT IDR at 'BB', Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed Banco BOCOM BBM S.A.'s (BOCOM BBM)
Long-Term Foreign Currency Issuer Default Rating (IDR) at 'BB', LT
Local Currency IDR at 'BB+' and LT National Rating at 'AAA(bra)'.
The Rating Outlook on the LT IDRs and National Ratings remain
Stable. Fitch also affirmed BOCOM BBM's Support Rating (SR) at '3'
and Viability Rating (VR) at 'bb-'.

KEY RATING DRIVERS

IDRS, NATIONAL RATINGS AND SR

BOCOM BBM's IDRs and National Ratings are driven by expected
support from the Bank of Communications Co, Ltd. (BOCOM, LT FC IDR
A/Stable and VR bb-), which owns 80% of BOCOM BBM. BOCOM BBM's LT
FC IDR is constrained by Brazil's Country Ceiling of 'BB', while
its LT LC IDR is two notches above Brazil's long-term rating (LT
FC and LC IDRs BB-/Stable), which is the usual maximum uplift
Fitch applies to Brazilian financial institutions owned by strong
foreign shareholders. The Stable Outlook on BOCOM BBM's IDRs
mirror the Outlook on the sovereign ratings.

Under Fitch's assessment, state support to BOCOM would flow
through to BOCOM BBM, should the need arise. This is based on the
view that the parent regulators would likely be in favor of BOCOM
supporting its Brazilian subsidiary and that any required support
would be immaterial relative to the ability of BOCOM to provide
it.

Fitch considers BOCOM BBM a strategically important subsidiary of
BOCOM, given the potential synergies between the two entities,
BOCOM's long-term growth plans in Brazil, high level of management
and operational integration, the largely fungible capital and
funding, BOCOM's large majority stake in BOCOM BBM, the expected
rise in the proportion of parental non-equity funding, and the
combined parent and local branding.

BOCOM BBM's Support Rating reflects the moderate probability of
support by BOCOM and is constrained by Brazil's country risks.

VR

BOCOM BBM's VR reflects its moderate franchise in the highly
concentrated Brazilian banking sector and its stable but
specialized business model that focuses on corporate lending. It
also takes into account the bank's risk appetite, which is
increasing under its revised strategy following the change in
ownership. Asset quality indicators are currently favorable but
could potentially worsen as loan growth stabilizes. Profitability
is good, and solid capitalization will allow rapid growth in the
next one to two years. BOCOM BBM's funding and liquidity are
comfortable and benefit from ordinary support from BOCOM. The
bank's Viability Rating also captures constraints imposed by the
operating environment.

BOCOM BBM is a small/medium-sized commercial bank with a focus on
corporate lending. It has a very small market share of less than
0.5% in both total sector loans and total sector deposits. Loans
to medium and large corporates make up two-thirds and a third of
total loans, respectively. The bank is also active in debt
structuring and distribution, wealth management, and treasury.
Funding is wholesale-based and concentrated by investor.

In line with its strategy adopted since the ownership change.
BOCOM BBM has grown faster than peers in the past two years. Total
credit risk exposure (loans, guarantees and private securities)
grew 26% and 69%, in 2016 and 2017, respectively.

While BOCOM BBM's asset quality indicators are solid, the loan
book is yet to season and so current impairment ratios may not
fully reflect future recurring impairment rates. That said, Fitch
does not expect impairment to rise above the peer average once the
loan book matures, given the bank's conservative underwriting
standards. BOCOM BBM's non-performing loans over 90 days were only
1.8% of gross loans as of December 2017, unchanged from December
2016 and lower than the sector average for corporate loans of
2.9%.

BOCOM BBM's profitability indicators are adequate. They have
remained broadly stable since 2014, with operating profit-to-RWAs
averaging 1.6% until December 2017. During 2017, profitability was
supported by slightly higher net interest margin and a decline in
impairment charges (to 35% of pre-impairment operating profit from
42% in 2016).

BOCOM BBM has a solid capital base that is made up fully of Core
Equity Tier 1 capital. As of December 2017, Fitch Core Capital and
total regulatory ratios stood at 15.9% and 16.1%, respectively
(20.5% and 21.3%, respectively, in 2016). The capitalization
ratios will continue to decline as the loan book continues to
grow. BOCOM's internal minimum limit for BOCOM BBM's total
regulatory capital ratio is 12.5%, which the bank could reach in
the next one to two years.

BOCOM BBM has a stable and adequate funding base that benefits
significantly from ordinary support provided by BOCOM. Following
the change in ownership, BOCOM BBM received low-cost funding from
the new majority shareholder and saw its funding costs drop
sharply. The bank's funding base is concentrated, but related
parties make up a meaningful portion of the total. BOCOM BBM has a
comfortable level of liquid assets that covered 34% of local
funding, as of December 2017. In the same period, the bank's
loans-to-deposits ratio (including deposit-like financial bills)
was an adequate 112%.

RATING SENSITIVITIES

IDRS AND SR

Changes in sovereign ratings and Outlook: BOCOM BBM's IDRs and SR
remain constrained by the sovereign ratings. A sovereign rating
downgrade or a revision of the sovereign Rating Outlook to
Negative would result in a similar action on the bank's long-term
IDRs, while a sovereign rating upgrade or a revision of its
outlook to Positive could lead to a review of the ratings.

Changes in parent support: BOCOM BBM's IDRs and SR could be
affected by a change in Fitch's assessment of BOCOM's willingness
to support BOCOM BBM or by a multiple-notch downgrade in BOCOM's
ratings.

NATIONAL RATINGS

Changes in BOCOM BBM's IDRs or in the bank's credit profile
relative to its Brazilian peers could result in changes in its
national ratings.

VR

BOCOM BBM's VR could be downgraded in the case of a sovereign
downgrade, or if its Fitch Core Capital ratio remains below 12% or
if its non-performing loans over 90 days remain above 5% of gross
loans for a sustained period.

BOCOM BBM's VR has a limited upside potential, as it captures
constraints by its operating environment and company profile.

Fitch affirmed the following ratings:

  --Long-term Foreign Currency IDR 'BB'; Outlook Stable;

  --Long-term Local Currency IDR 'BB+'; Outlook Stable;

  --Short-term Foreign and Local Currency IDRs 'B';

  --Long-term National Rating 'AAA(bra)'; Outlook Stable;

  --Short-term National Rating 'F1+(bra)';

  --Support Rating '3';

  --Viability Rating 'bb-'.


BANCO DAYCOVAL: Fitch Affirms IDRs at 'BB-', Outlook Stable
-----------------------------------------------------------
Fitch Ratings has affirmed Banco Daycoval S.A.'s (Daycoval) Long-
Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at
'BB-'. The Rating Outlook is Stable.

Daycoval's IDRs are driven by its Viability Rating (VR), which
Fitch also affirmed at 'bb-'. The Stable Outlook of the IDRs
mirrors the Outlook of Brazil's sovereign rating ('BB-'/Outlook
Stable). Fitch also affirmed Daycoval's Long-Term National Rating
at 'AA(bra)' with a Stable Outlook.

KEY RATING DRIVERS - VR, IDRS, NATIONAL RATINGS

The affirmation of Daycoval's VR, IDRs and National Ratings
reflects the bank's solid company profile, underpinned by a stable
franchise and business diversification that is relatively higher
than other midsized banks in the region, consistent and strong
performance track record maintained through the cycles, and
comfortable capitalization. It also reflects the bank's
conservative asset and liability management and strong liquidity,
which would mitigate risks arising from a potential volatility in
its wholesale based funding structure. Daycoval's VR, and
consequently IDRs, remain constrained by the sovereign rating, as
the bank does not have the characteristics required from a bank to
be rated above the sovereign. The bank's VR also captures the
limitations imposed by the operating environment.

Daycoval's main focus remains SME lending and payroll deductible
loans, which made up 66% and 31% of total loans, respectively, as
of December 2017. The bank's asset quality indicators have
remained largely stable through the cycles, including during the
2015-2016 recession and in 2017. Impaired loans (those classified
in the D-H range of the central bank's risk scale) declined to
7.10% as of December 2017 (7.5% in 2016), while non-performing
loans (NPLs) above 90 days remained low at 2.9% in the same period
(3.0% in 2016).

Daycoval continued to post solid profitability through December
2017. The bank's bottom-line profitability ratios are higher than
the average of similarly rated peers, due to its higher net
interest margin that comfortably offsets its relatively higher
impairment charges. Fitch expects the bank's solid performance to
continue in 2018 and operating profit/risk weighted assets (RWA)
ratio not to deviate significantly from the 3.5% average observed
in 2014-2017. As of December 2017, operating profit/RWA rose to a
high 3.9% (3.5% in 2016) as a result of a large drop in loan
impairment charges, which equaled 34% of pre-impairment operating
profits (44% in 2016).

Daycoval has a strong capital structure that is entirely made up
of Core Equity Tier 1 capital. The effect of the gradual
implementation of Basel III requirements has been immaterial. The
bank's Fitch core capital (FCC) ratio fell to 14.70% at December
2017, from 15.70% at December 2016, due to significant RWA growth.
Fitch expects FCC ratio to remain adequate over the one- to two-
year time horizon, due to robust internal capital generation and
moderate asset growth.

Daycoval has a wholesale based but highly stable and relatively
diversified funding base. As of December 2017, local funding
mainly consisting of deposits and financial bills (letras
financeiras) made up 73% of total funding. Daycoval's liquidity
has historically been very comfortable, and free liquid assets
totaled BRL3.3 billion as of December 2017, which corresponded to
21% and 28% of total and local funding, respectively.

Daycoval's asset and liability management is also adequate. As of
December 2017, the average maturity of the loan portfolio was 300
days, compared to 381 days of the funding base.

KEY RATING DRIVERS - SENIOR DEBT RATING

The affirmation of Daycoval's senior debt ratings at 'BB-'
reflects the affirmation of the bank's LT Foreign Currency IDR,
which is the anchor rating for the debt ratings.

KEY RATING DRIVERS - SUPPORT RATING, SUPPORT RATING FLOOR

Daycoval's Support Rating and Support Rating Floor were affirmed
at '5' and 'NF', respectively, reflecting the bank's low systemic
importance and Fitch's view that external support, should the need
arise, cannot be relied upon.

RATING SENSITIVITIES

VR, IDRS, SENIOR DEBT RATING

Changes in sovereign ratings and Outlook: Daycoval's VR, IDRs and
senior debt ratings remain constrained by the sovereign ratings. A
sovereign rating downgrade or a revision of the sovereign Rating
Outlook to Negative would result in a similar action on Daycoval's
VR and long-term IDRs. A sovereign rating upgrade or a revision of
its outlook to Positive could lead to a review of Daycoval's long-
term IDRs.

Deterioration in profitability and capitalization: Daycoval's IDRs
and VR would be negatively affected by a severe deterioration in
earnings that lead to a fall in the operating profit/RWA ratio to
below 2% and/or a decline in its FCC ratio to less than 13%.

NATIONAL RATINGS

Changes in Daycoval's IDRs or in the bank's credit profile
relative to its Brazilian peers could result in changes in its
national ratings.

SUPPORT RATING, SUPPORT RATING FLOOR

A potential upgrade of Daycoval's Support Rating and Support
Rating Floor is unlikely in the foreseeable future, reflecting the
low probability that the bank's systemic importance would increase
materially.

Fitch has affirmed Daycoval's ratings as follows:

  --Long-Term Foreign- and Local-Currency IDRs at 'BB-'; Outlook
Stable;

  --Short-Term Foreign- and Local-Currency IDRs at 'B';

  --Viability Rating at 'bb-';

  --Long-Term National Rating at 'AA(bra)'; Outlook Stable;

  --Short-Term National Rating at 'F1+(bra)';

  --Support Rating at '5';

  --Support Rating Floor at 'NF';

  --Long-Term Rating of senior unsecured USD notes due 2019 at
'BB-'.


BANCO INDUSTRIAL: Fitch Affirms IDRs at 'BB-', Outlook Stable
-------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Foreign and Local
Currency Issuer Default Ratings (IDRs) of Banco Industrial do
Brasil S.A. (BIB) at 'BB-'. The IDR Outlook is Stable. Fitch also
affirmed the bank's National long-term rating at 'AA-(bra)', as
well as its other ratings. The National rating Outlook is Stable.

KEY RATING DRIVERS

IDRS, VR AND NATIONAL RATINGS

The affirmation of BIB's IDRs and VR at 'BB-' and 'bb-',
respectively, considers BIB's experience in small and medium-sized
enterprises (SMEs), where the bank has managed to operate with
relatively low losses even over challenging economic cycles. The
VR captures the constraints imposed by the operating environment.
The ratings also take into account the stability of the credit
profile of the institution, notably evidenced by the maintenance
of good indicators of asset quality, liquidity and acceptable
capitalization in different cycles of the Brazilian economy. In
addition, they also consider the size of the bank and the
concentration of assets and liabilities inherent to its business
model.

BIB's business model is stable and characterized by the
maintenance of low leverage, rigor and conservatism, in terms of
risk appetite, and a high liquidity position. BIB avoids
positioning itself as the first bank for its clients because of
its size. The bank has been relatively successful in seeking
better structures and renegotiations for loans to SMEs, with
additions of guarantees, in order to reduce risks in a more
challenging economic scenario, as well as taking advantage of
opportunities to purchase low-risk portfolios.

BIB's strategic objective has been consistent over the years; 85%
of the total portfolio was in the SME segment and only 15% in
payroll-deductible loans in 2017, a segment in which it mainly
operates in loan renewals, with no plans to expand the portfolio
with new customers. The execution of the strategy has been in line
with the bank's budget. BIB's governance corporative is in line
with standards of its peers.

In Fitch's opinion, BIB's underwriting standards are sound, with
credit being the main risk for the bank's operations. BIB has an
adequate structure of risk controls, reflected by its good ratios
of asset quality. Growth in loan portfolio has been low due to few
opportunities, and the market risk is very low.

The non-performing loans (NPLs) ratio over 90 days was only 1% on
average in the last four years. The bank's loan concentration
remained high but controlled: the 20 largest clients accounted for
28% in 2017, against 26% of the portfolio in 2016. Loan classified
as "DH" represented 2.1% in 2017 (1.1% in 2016 and 3.4% in 2015) -
a better result than the average of its peers.

Despite the reduction in 2017, BIB reported still acceptable
results, even in the face of a weak macroeconomic performance
scenario in 2017. This was possible because financing costs
improved, and competition in the SME segment was more moderate,
which contributed to the generation of good spreads. Fitch expects
BIB's profitability to remain acceptable in the coming years. The
average of the operating result/risk-weighted assets (RWA) over
the last four years was 1.6%, a percentage considered adequate.

BIB has a comfortable capital base, which is reflected in its
Fitch Capital Core ratio (FCC, 16.2% in 2017 and 15.7% in 2016).
The bank has diversified its funding base, with lines of foreign
trade from multilateral agencies, but still maintains term
deposits as the main source of funding, with competitive costs and
terms. Funding concentration is high - the top 20 investors
accounted for a high 48% of funding in 2016 (40% in 2015). The
bank maintained comfortable liquidity throughout 2017, with BRL650
million net cash on average. The average of the last four years of
the loans/deposits ratio, considering the financial bills, was
131.5%.

RATING SENSITIVITIES

IDRS AND VR

Changes in sovereign ratings and outlook: BIB's IDRs and VR remain
influenced by the sovereign ratings and the local operating
environment. A sovereign rating downgrade or a revision of the
sovereign Rating Outlook to Negative would result in a similar
action on the bank's long-term IDRs, while a sovereign rating
upgrade or a revision of its Outlook to Positive could lead to a
review of these ratings.

Ratings also could be negatively affected by deterioration in the
quality of the bank's assets, with NPLs above 5% and consequent
decline in performance (Operating result/RWA below 1 %).

NATIONAL RATINGS

Changes in BIB's IDRs or in the bank's credit profile relative to
its Brazilian peers could result in changes in its national
ratings

Fitch affirmed the following ratings:

Banco Industrial do Brasil S.A.

  --Long-term Foreign and Local Currency IDRs at 'BB-'; Outlook
Stable;

  --Short-term Foreign and Local Currency IDR at 'B';

  --Viability Rating at 'bb-';

  --Support Rating at '5';

  --Support Rating Floor at 'NF';

  --National Long-Term Rating at 'AA-(bra)'; Outlook Stable;

  --National Short-Term Rating at 'F1+ (bra)'.


JBS SA: Brazilian Prosecutors Charge Shareholder With Corruption
----------------------------------------------------------------
Ricardo Brito at Reuters reports that Brazilian federal
prosecutors presented charges against Joesley Batista, a major
shareholder in meatpacker JBS SA (JBSS3.SA), another senior
executive and a former federal prosecutor accusing them of
corruption, money laundering and obstruction of Justice, a source
familiar with the matter said.

The charges against Joesley Batista, former executive Francisco
Assis and former federal prosecutor Angelo Goulart were presented
to a Brazilian court. They would become defendants in a criminal
case if the court agreed with the charges, according to Reuters.

Lawyers for Batista and Assis said in a statement that charges
against Batista and Assis could not be presented before the
decision by the Supreme Court on the validity of their plea deals,
the report notes.  Efforts to locate an attorney for Goulart were
unsuccessful, the report relays.

The charges, which are under seal, accuse Goulart of leaking
internal Prosecutors Office information to Batista and Assis to
ease their negotiations for a plea deal, the report relays.

Under terms of their plea deal signed a year ago, Batista, who at
the time headed family holding J&F Investimentos SA, and Assis
confessed to certain corruption crimes and were exempted from
prosecution for their cooperation, the report adds.

The report discloses that Supreme Court Justice Edson Fachin is
considering whether to annul the plea deal, analyzing a request
made by former prosecutor general Rodrigo Janot last September
during his final days in office.  Mr. Janot said the plea deal
should be voided because facts had been hidden from authorities,
the report relays.

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: Beats Estimates on Q1
-----------------------------
Tatiana Bautzer at Reuters reports that Brazil's JBS SA, the
world's largest meatpacking company, reported a net income of
BRL506 million ($140 million) for the first quarter, 48 percent
above analysts expectations of BRL341 million.

Earnings before interest, tax, depreciation and amortization
(EBITDA), a gauge of operating profitability, stood at BRL2.8
billion, also higher than a BRL2.709 billion consensus estimate.

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.


USJ ACUCAR: Fitch Upgraded IDRs to CCC+; Removes Rating Watch Pos.
------------------------------------------------------------------
Fitch Ratings has upgraded U.S.J. Acucar e Alcool S.A.'s (USJ)
Foreign and Local Currency Long-Term Issuer Default Ratings (IDRs)
to 'CCC+' from 'CCC', and affirmed the National Scale Rating at
'CCC(bra)'. The ratings have been removed from Rating Watch
Positive. At the same time, Fitch has affirmed USJ's USD197
million senior secured notes due 2021 and USD29 million senior
unsecured notes due 2019 at 'CCC+'. The recovery rating on both
issuances has been revised to 'RR4' from 'RR3'.

The upgrade of the IDRs reflects the publication of Fitch's
updated "Corporate Rating Criteria" on March 29, 2018, which
introduced '+' and '-' modifiers for the 'CCC' rating category,
aiming to provide more granularity at lower rating levels. USJ's
ratings continue to incorporate Fitch's concerns about the
company's ability to meet its financial obligations as access to
long-term funding remains scarce for distressed Brazilian Sugar
and Ethanol (S&E) companies. However, short-term refinancing
pressure reduced following the sale of the credit it was eligible
to as indemnity compensation payments from a lawsuit filed by
Copersucar against the Federal Government, for BRL166 million, and
the issuance of USD30 million in new medium-term debt in April
2018.

Fitch expects USJ to report negative free cash flow (FCF) and high
leverage over the next two years due to the steep reduction in
sugar prices and USJ's limited product mix flexibility. Coupon
payments expected for November 2018 on the secured notes, after a
grace period, and USJ's high exposure to FX risk were also
considered in the analysis.

The revision of recovery ratings to 'RR4' from 'RR3' on both the
secured and unsecured notes reflects the "Country-Specific
Treatment of Recovery Ratings Criteria", according to which a soft
cap on 'RR4' is to be applied to notes of Brazilian issuers.

KEY RATING DRIVERS

FCF to Remain Negative: USJ's high refinancing risk reduced and
Fitch expects the company to close fiscal 2018 with improved cash
to short-term debt coverage ratio compared to fiscal 2017.
However, liquidity will remain pressured by the expectation that
USJ will continue to burn cash in the medium term. Fitch expects
average negative FCF at BRL30 million over the next four years due
to depressed sugar prices and the resumption of coupon payments of
USD12 million on the secured notes as of November 2018. In the
last 12 months (LTM) ended Dec. 31, 2017, the company generated
BRL237 million of EBITDAR and cash flow from operations (CFFO) was
BRL88 million. With capital expenditures of BRL148 million, FCF
was negative BRL59 million. Fitch expects EBITDAR to reduce to
BRL228 million in fiscal 2018 and fiscal 2019, due mostly to lower
crushed volumes and sugar prices of USD13.5 cents/pound, and
EBITDAR margins are expected to decline to 42% in fiscal 2018 from
47% in fiscal 2017. Fitch incorporated capex to reach BRL164
million in fiscal 2018, comparing unfavourably with BRL128 million
in fiscal 2017.

Above-Average Industry Risks: The Brazilian S&E industry is
characterized by intense price volatility and below average access
to liquidity, with the majority of players falling into the 'B'
rating category. International sugar prices are highly volatile
and can fall below the marginal cash cost of Brazil's lowest cost
producers. Price volatility and the industry's capital intensive
nature can lead to negative FCF and erode liquidity positions
across the board. Fitch projects sugar prices to remain depressed
in 2018 and 2019. Sugar prices have dropped by 30% over the past
12 months and are now trading at USD11.5 cents/pound (not
including white sugar premium at USD25/ton) below USJ's cash costs
(including maintenance capex) estimated at USD12.5 cents/pound.
USJ's relatively small size and average agricultural and
industrial yields contribute to its average business model
compared to peers. S&E companies' performance is also affected by
weather conditions and their impact on yields and cost dilution.

Price volatility is also present in the Brazilian ethanol market
following Petrobras's fuel policy of setting domestic gasoline
prices on a daily basis. Fitch expects ethanol prices to improve
in 2018 as the combination of oil prices and the FX rate will lead
Petrobras to keep increasing domestic gasoline prices, paving the
way for a gradual increase in hydrous ethanol prices.

Sugar Orientation amid Depressed Prices: USJ's has been
historically oriented for sugar sold in the domestic market and it
has a relatively limited capacity to shift production toward
ethanol. In the LTM ended Dec. 31, 2017, USJ exported about 36% of
total sugar volumes and sugar represented 50% of the company's
revenues. During the period, USJ crushed volume reduced 10%, to
3.2 million tons due to unfavorable weather conditions. Fitch
expects the company to be one of the most affected by the recent
drop in sugar prices among all players rated by Fitch, whereas
companies with more presence in ethanol should benefit from higher
prices and are expected to report better margins and cash flow
metrics.

High Leverage and FX Risk: Fitch forecasts net adjusted leverage
to remain high at 4.8x over the next four years. USJ's leverage
remains high for the industry, despite the implied 25% haircut on
the debt exchange offer concluded in May 2016. The company's total
adjusted debt as per Fitch's internal criteria amounted to BRL1.2
billion as of Dec. 31, 2017, flat compared to March 31, 2017. In
the LTM, ended Dec. 31, 2017, net adjusted debt/EBITDAR ratio was
5.2x, comparing unfavourably with 4.5x for fiscal 2017.

Fitch believes USJ's FX risk is partially mitigated by exports,
hedging instruments, and the stretched maturity scheduled of its
USD-debt, which accounted for 75% of total adjusted debt as of
Dec. 31, 2017. As the company moves the product mix toward more
ethanol and less sugar, the share of revenues in hard currency
will decline, reducing its natural hedge. The company's total
adjusted debt consists of the following obligations: USD197
million secured and USD29 million unsecured senior notes due 2021
and 2019, respectively (68% of total adjusted debt); working
capital lines (10%); land lease agreements as per Fitch's internal
criteria and guarantees issued in favor of BNDES under loan
agreements with SJC (12%); exports pre-payments and other trade
finance facilities (6%); subsidized loans FINAME and FINEM (3%)
and others with the balance.

Strong Recovery Prospects: USJ's Recovery Ratings have been capped
at 'RR4' due to Fitch's "Country Ceiling Specific Treatment of
Recovery Ratings Criteria" that caps the Recovery Rating of
Brazilian issuers at 'RR4'. The 'RR4' implies in expected recovery
rates between 31% and 50%. If it was not for this criteria, the
notes would have been rated higher. Fitch's recovery calculations
for USJ's notes include liquidation assets of BRL1.3 billion,
which compares favorably versus secured debt of BRL1.1 billion and
unsecured debt of BRL36 million. The basis for the high indicated
recovery for both the unsecured and secured creditors in the
bespoke analysis is due to BRL1 billion in land properties. USJ
has approximately 25,000 hectares of land, including properties in
both arable and urban areas. Around 70% of these assets at market
value are unencumbered. Part of these land properties surround the
Sao Joao mill which is located near food and beverage companies,
the Santos port terminal (247 km) and Paulinia (70 km), a
distribution hub for most of the fuel produced in the State of Sao
Paulo.

DERIVATION SUMMARY

USJ's ratings reflects the company's weaker liquidity and capital
structure than Jalles Machado S.A (Jalles, BB-/Stable) and Usina
Santo Angelo S.A (USA, A-(bra)/Stable) whose cash to short-term
debt coverage ratios stand at above 1.0x and net adjusted leverage
is below 2.0x. USJ's ratings also compare unfavorably with those
of Biosev S.A (Biosev, B+/Stable), which improved liquidity and is
expected to bring leverage down to 3.4x following a BRL3.5 billion
(equivalent to USD1.1 billion) capital injection from the parent,
Louis Dreyfus Commodity Holding group (LD). With USD-denominated
debt accounting for 75% of its total adjusted debt and focus on
the domestic market, USJ is also more exposed to foreign exchange
risks compared to all peers rated by Fitch.

Operationally, USJ has a weaker business profile than Jalles, as
the latter has higher product mix flexibility, above-average
agricultural yields and presence of high value added products in
the mix, whereas USJ's high focus on sugar is a disadvantage in
times of depressed commodity prices. USJ also lacks the scale and
presence of a large shareholder like Biosev; and the high yields
and low cost structure of USA.

KEY ASSUMPTIONS

Fitch's Key Assumptions Within Its Rating Case for the Issuer

  --Flat crushed volumes at 3.3 million tons from FY19 onwards;

  --Sugar prices of USD14.8 cents/pound for 2017/2018 are based on
hedged prices and volumes as of Dec. 31, 2017. Fitch assumes that
prices will be USD13.50/pound and USD15.0/pound in fiscal 2019 and
2020, respectively.

  --The combination of oil prices and the FX rate will lead
Petrobras to keep increasing domestic gasoline prices, paving the
way for a gradual increase in hydrous ethanol prices;

  --Costs (CCT and industrial) are forecasted to increase by 5%
annually;

  --CAPEX of BRL164 million in FY18 and BRL140 million in the
following years;

  --No dividends from SJC, the Joint Venture with Cargill.

  --Average FX rate of BRL3.20/USD for fiscal 2018 and BRL3.30/USD
for fiscal 2019.

KEY RECOVERY RATING ASSUMPTIONS

  --The recovery analysis assumes that USJ 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
land properties and other assets that can be realized in a
reorganization and distributed to creditors.

  --The 80% advance rate for its land and sugar cane plantations
is typical for the sector and reflects the good location of such
assets, near urban areas and other S&E players.

  --The 20% advance rate for fixed assets like machinery,
equipment and the mill itself reflect the low liquidity of such
assets.

  --Inventories have been discounted at 20% to reflect the above
average liquidation prospects of sugar and ethanol assets.

  --The waterfall results in a 91% to 100% recovery corresponding
to 'RR1', but limited to 'RR4' given the soft cap on Brazilian
issuers.

RATING SENSITIVITIES

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

  --An upgrade is unlikely in the short term given USJ's
persistently high refinancing risks.

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

  --The company's ratings could be downgraded if liquidity
deteriorates further and cash burn is higher than projected.

LIQUIDITY

Weak Liquidity: Fitch expects USJ to report cash and short-term
debt positions of BRL110 million and BRL160 million in fiscal
2018, respectively, leading to a coverage ratio of 0.7x, comparing
favourably with 0.1x reported for fiscal 2017. USJ's liquidity
benefited from the sale for BRL166 million at a 50% discount of
the credit it was eligible to as indemnity compensation payments
from a lawsuit filed by Copersucar against the Federal Government.
The company also issued a USD30 million medium-term debt in April
2018. However, despite the reduction of the company's high
refinancing risk, Fitch views that USJ's liquidity remains
pressured by high cash burn due to depressed sugar prices and
scarce availability of long-term finance for financially-
distressed S&E players. As of Dec. 31, 2017, USJ's cash position
of BRL45 million represented only 0.3x of the short-term debt of
BRL148 million.

FULL LIST OF RATING ACTIONS

Fitch has taken the following rating actions:

U.S.J. - Acucar e Alcool S.A

  --Foreign and Local Currency Long-Term IDRs upgraded to 'CCC+'
from 'CCC';

  --Long-Term National Scale rating affirmed at 'CCC(bra)';

  --USD197 million senior secured notes due 2021 affirmed at
'CCC+'; Recovery rating revised to 'RR4' from 'RR3';

  --USD29 million senior unsecured notes due 2019 affirmed at
'CCC+', Recovery rating revised to 'RR4' from 'RR3'.



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


COMCEL TRUST: Fitch Affirms IDRs at 'BB+', Outlook Stable
---------------------------------------------------------
Fitch Ratings has affirmed the long-term, foreign- and local-
currency Issuer Default Ratings (IDRs) of Comcel Trust (Comcel) at
'BB+' with a Stable Outlook. Fitch has also affirmed Comcel's
USD800 million senior unsecured notes at 'BB+.'

Comcel Trust (Comcel) is a special-purpose vehicle (SPV) created
in the Cayman Islands to issue USD800 million senior unsecured
notes on behalf of Comcel Group, a group of several legal entities
providing primarily mobile telecommunication services under the
Tigo brand. The ratings of the trust are based on the combined
credit profile of Comcel, of which entities jointly and severally
guarantee the note on a senior unsecured basis.

Comcel's ratings reflect its strong market position as the leading
mobile provider in Guatemala and its robust financial profile,
with low leverage for the rating category. The company's ratings
are tempered by its lack of geographical and service revenue
diversification, as well as high shareholder returns, which limit
any material deleveraging. Comcel's ratings are closely linked to
that of its parent, Millicom International Cellular S.A. given its
strong financial and strategic linkage. Comcel Trust is a 55%-
owned subsidiary of Millicom International Cellular S.A. (MIC,
BB+/Stable).

KEY RATING DRIVERS

Leading Market Position: Comcel is a 55% owned subsidiary of
Millicom International Cellular S.A. (MIC, BB+/Stable) and, as of
year-end 2017, is the largest mobile operator in Guatemala, with
an estimated subscriber market share of over 57%. The company's
entrenched market position is supported by its solid network and
service quality, as well as its strong brand recognition. Fitch
Ratings expects these competitive strengths to remain intact and
ward off competitive pressures over the medium term.

Stable Revenue Growth: Fitch forecasts Comcel will undergo low
single-digit revenue growth over the medium term, mainly driven by
continued growth in data and home business revenues that will help
to offset voice revenue erosion. Strong demand for mobile data,
supported by increased penetrations of smart phones and data
plans, will continue to offset the pressured voice ARPU to an
extent. Additionally, the company's continued investment in fixed-
line services will result in an increased contribution from both
fixed-line broadband and cable TV.

Fixed Line Growth: Fitch projects Comcel's fixed broadband and
cable TV segments will experience strong double-digit revenue
growth over the medium term given its increasing investment in
network coverage expansion. The segment remains relatively
underpenetrated and highly fragmented, which should provide Comcel
with ample room to grow, as well as opportunities to consolidate
the market by acquiring small players. Fitch expects the revenue
proportion of the Tigo Home segment will reach 10% by 2020, which
positively compares with 7.3% in 2017 and 5.8% in 2016.

Solid Margins: Comcel boasts one of the highest operating margins
among telecom operators in the region with a Fitch calculated
EBITDA margin of 48.7% as of Dec. 30, 2017. Comcel's EBITDA margin
has trended down since 2014 as a result of average revenue per
unit (ARPU) erosion from declining voice/SMS revenues and
competitive pressures. Additionally, an increasing contribution
from lower-margin fixed-line and equipment sales will continue to
pressure the margin toward 47%. Nevertheless, this level of margin
still compares favorably with its regional peers.

Low Leverage: Fitch expects Comcel to maintain moderately low
leverage for the rating category, with its net debt/EBITDAR to
remain below 1.5x over the medium term, backed by its solid
operational cash generation. Fitch does not foresee any material
improvement in the company's financial profile due to the
aggressive shareholder return policy in the medium term. Dividend
payments could continue to pressure Comcel's FCF generation into
negative territory, despite solid cash flow from operations (CFFO)
estimated to be above USD500 million, which comfortably covers
annual capex requirement.

DERIVATION SUMMARY

Comcel's credit profile is strong compared with its regional
telecom peers in the 'BB' rating category given its high
profitability, robust cash flow generation, and low leverage,
underpinned by its leading market shares and solid network quality
and coverage. The company's credit profile is in line with its
peer Telefonica Celular del Paraguay (BB+), an integrated telecom
operator and MIC's another subsidiary in Paraguay. Comcel's
financial and business profiles are stronger than Colombia
Telecomunicaciones S.A. E.S.P., an integrated telecom operator in
Colombia rated 'BB/Stable'. Negatively, the company lacks
geographic and product diversification.

KEY ASSUMPTIONS

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

  --Stable single-digit revenue growth.

  --Double-digit revenue growth in fixed-line operations.

  --EBITDA margin to stabilize around 47% in the medium term.

  --Capex-to-sales, excluding spectrum costs, remains around 12%-
13%.

  --Dividends increase starting 2019 due to the closing of the DOJ
investigation.

  --Net leverage to remain comfortably below 1.5x over the medium
term.

RATING SENSITIVITIES

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

  --A positive rating action on Comcel would likely be linked to a
positive rating action on Millicom. MIC's business position and
overall financial profile continue to be solid for the rating
category.

  --Continued improvement in MIC's overall financial results could
lead to positive rating actions for both entities.

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

A negative rating action on MIC may negatively affect Comcel's
ratings, given its linkage.

Net debt-to-EBITDAR increases to above 3.0x without a clear path
to deleveraging due to any of the following:

  --Deterioration in MIC's financial profile leading to more
aggressive shareholder distributions;

  --Weaker cash generation due to competitive or regulatory
pressures on its operations;

  --M&A activity.

Any potential material financial impact from the ongoing
investigation regarding the improper payment may also pressure the
ratings.

LIQUIDITY

Solid Liquidity: Comcel has a solid liquidity profile backed by
its high cash balance, stable CFFO and well-spread debt
maturities. As of the Dec. 31, 2017, the company generated USD514
million in CFFO and held USD295 million in cash and equivalents,
which favorably compares with no short-term debt. The company
faces no debt maturities until 2024 when its bond matures.

Comcel Trust is a special-purpose vehicle (SPV) created in the
Cayman Islands to issue USD800 million senior unsecured notes on
behalf of the Tigo Guatemalan entities, all of which jointly and
severally guarantee the note on a senior unsecured basis. The
company's total debt, as of Dec.31, 2017 was USD995 million, which
consisted of an USD800 million senior unsecured bond due 2024 and
a two local currency loans due 2025.

FULL LIST OF RATING ACTIONS

Fitch has affirmed the following ratings:

Comcel Trust

  --Long-term, foreign-currency IDR 'BB+'; Outlook Stable;

  --Long-term, local-currency IDR 'BB+'; Outlook Stable;

  --USD800 million senior unsecured notes at 'BB+'.


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


DOMINICAN REPUBLIC: To Pitch US$249.6MM Loan for SW Dam to Senate
-----------------------------------------------------------------
Dominican Today reports that government officials will go to the
Senate to provide details about the US$249.6 million loan to
finance phase III of the dam at Monte Grande (southwest).

Finance minister Donald Guerrero, Finance Ministry Public Credit
Director Athemayani del Orbe and Dams and Canals Agency (Indrhi)
director Olgo Fernandez were slated to meet with the members of
the Senate Finance Committee, according to Dominican Today.

The works of the dam will cost around US$249.8 million, with a
capacity of 350 million cubic meters of water, the report notes.

The government has provided its corresponding matching funds of
around US$30.0 million to develop the project, which is expected
to create 2,500 direct jobs during the 30 months of construction,
the report relays.

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+'.


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


BANCA MIFEL: Fitch Hikes LT IDRs to BB+, Outlook Stable
-------------------------------------------------------
Fitch Ratings has upgraded Banca Mifel, S.A.'s (Mifel) Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'BB+'
from 'BB' and its Viability Rating (VR) to 'bb+' from 'bb'. Fitch
has also affirmed Mifel's short-term foreign and local currency
ratings at 'B'. The long-term National scale rating of Mifel was
also upgraded to 'A+(mex)' from 'A(mex)'. The long-term Rating
Outlook is Stable. The bank's global subordinated debt was
upgraded to 'BB-' from 'B+'.

The upgrades are based on Mifel's sound financial performance and
proven business model through the economic cycle, while improving
its performance on a material and sustained basis. The bank has
demonstrated capacity to increase its business volume in both
credits and deposits, while maintaining reasonable capitalization
levels and controlled delinquency ratios, despite the accelerated
growth of its loan portfolio.

KEY RATING DRIVERS

VR, IDRS AND NATIONAL RATINGS

Mifel's IDRs and National ratings are driven by its intrinsic
creditworthiness, as reflected in its VR of 'bb+'. Mifel's VR is
highly influenced by its moderate franchise within the Mexican
banking industry but with a consolidated business model that has
proven to be resilient through economic cycles and a competitive
position that benefits from its strong customer relationships in
its region. The ratings also take into account its moderate
capitalization metrics, which are relatively tight at this rating
level.

Mifel is a mid-sized bank focused on medium enterprises,
mortgages, investment projects, construction loans to homebuilders
and urban mobility. Mifel also complements its offering with
diverse financial services and products such as money market
transactions, trust services, derivatives, foreign exchange
transactions and factoring, among others. Mifel ranks as the 13th
bank in the system with a market share of 0.8% and 0.6%, in loans
and costumer deposits, respectively.

The bank's stable capitalization is also considered. Mifel's
capital position, as measured by its Fitch Core Capital (FCC) to
RWAs ratio, is moderate and reasonable to the bank's current risk
appetite and business model. As of 1Q18, this metric stood at
12.3%, at the same level showed in the past two years despite high
loan growth and underpinned by full retention of earnings. Fitch
also considers this level partially mitigates some asset quality
weaknesses, such as borrower concentrations or the relatively low
loan loss provisions, albeit the good collateral partially
mitigates this risk as well. Fitch expects that the Fitch Core
Capital (FCC) to Risk Weighted Assets (RWAs) ratio will tend to
stabilize in the range of 12%-13% given the bank's expansion plans
and business model.

Mifel's profitability metrics maintain a positive trend since 2015
and Fitch believes this ratio is good in view of the bank's
corporate nature. As of 1Q18, operating earnings to RWAs stood at
2.7%, higher than the three-year average of 2.2%. These metrics
are underpinned by steady loan growth and well-contained credit
and operating costs that compensate net interest margins pressured
by growing funding costs. Net interest margin (NIM: Net Interest
Income to Average Earning Assets) tightened to 3.9% from 4.3% in
2017 and 4.7% in 2016.

Fitch considers Mifel's asset quality is reasonable and consistent
with its rating level. Its adjusted impairment ratio (NPLs ratio
plus 12-month charge-offs of total loans plus 12-month charge-
offs) remains at controlled levels, it stood at 2.1% at 1Q18 at
the same level showed in 2017 and 2016. Fitch' assessment of
Mifel's asset quality also factors in the high concentration of
the loan book, where the 20 largest borrowers accounted for 34% of
the gross loans and 2.8 times FCC. Loan loss reserves is lower
than 100% of impaired loans, but the bank's good collateral
schemes and usage of guarantees granted by development financial
entities, partially mitigates its risk concentrations and low
reserve coverage.

Mifel's growing deposit franchise sourced in its branch network
from strong customer relationships supports its sound funding and
liquidity profile. Mifel's deposits have grown at a stable pace
and account for 49% of its total funding. The bank's loan to
customer deposit ratio stood at stable level of 140% as of March
2018. Concentrations among Mifel's depositors remain at moderate
levels; the 20 major depositors represented 18% of total deposits,
which have shown stability. The bank also finance its operations
with wholesale funding coming from development banks to better
match its balance sheet in terms of maturity, interest rate and
currency. Likewise, Mifel has reported a Liquidity Coverage Ratio
(LCR) above 100% consistently.

SUPPORT RATING AND SUPPORT RATING FLOOR

Mifel's Support Rating and Support Rating Floor were affirmed at
'5' and 'NF', respectively, in view of the bank's low systemic
importance, which indicates that although possible, external
support cannot be relied upon.

SUBORDINATED NOTES

The bank's global subordinated securities were upgrade at 'BB-',
two notches below the applicable anchor rating, Mifel's VR of
'bb+'. The rating of the notes is driven by Fitch's approach to
factoring certain degrees of subordination. Similar securities
would typically be two notches lower for non-performance risk and
an additional notch lower for loss severity. However, in Mifel's
case, the overall combined notching is limited to two notches, due
to compression considerations as per Fitch's actual criteria at
this issuer's rating level.

The notching factor in its non-performance risk since Fitch
considers that the triggers for coupon deferrals or cancellations
are relatively high, according to applicable local regulations,
and an additional notch for loss severity, which reflects that
these securities are plain-vanilla subordinated debt (subordinated
preferred, under the local terminology). This issue receives no
equity credit under Fitch's approach, since these are dated
securities without a loss absorbing feature that triggers before
the point of non-viability.

RATING SENSITIVITIES

VR, IDRS AND NATIONAL RATINGS

An upgrade of Mifels' ratings will depend on a material
strengthening of its franchise, a process that Fitch considers
will take time, coupled with the bank reaching and sustaining FCC
ratios above 14% consistently. A reduction in its risks and
business concentrations on both sides of the balance sheet could
also be positive for the ratings, if joined by two additional
elements.

In turn, a downgrade of Mifel's ratings would arise if its capital
metrics and profitability weaken significantly. Specifically, if
the bank shows a FCC ratio consistently below 12.0% and operating
profit to RWAs metric below 2%. Material deteriorations on the
bank's asset quality could also exert pressure on the ratings.

SUPPORT RATING AND SUPPORT RATING FLOOR

A potential upgrade of Mifel's Support Rating and Support Rating
Floor is limited at present, since external support cannot be
relied upon due to its modest systemic importance.

SUBORDINATED NOTES

The bank's subordinated debt rating will likely mirror any
downgrade in the bank's VR, as these are expected to maintain the
same relation to Mifel's intrinsic profile. However, if the bank's
rating is upgraded furtherly the rating of the notes will probably
wide its notching relative to the bank's VR due to the rating
compression will no longer apply as per Fitch's actual criteria.

Fitch has upgraded the following ratings:

  --Long-term foreign currency IDR to 'BB+' from 'BB'; Outlook
Stable;

  --Long-term local currency IDR to 'BB+' from 'BB'; Outlook
Stable;

  --Viability rating to 'bb+' from 'bb';

  --National-scale long-term rating to 'A+(mex)' from 'A(mex)';
Outlook Stable;

  --Long-term cumulative subordinated preferred notes to 'BB-'
from 'B+'.

Fitch has affirmed the following ratings:

  --Short-term foreign currency IDR at 'B';

  --Short-term local currency IDR at 'B';

  --National-scale short-term rating at 'F1(mex)';

  --Support rating at '5';

  --Support rating floor at 'NF'.


BANCO VE POR: Fitch Affirms IDRs at 'BB', Outlook Stable
--------------------------------------------------------
Fitch Ratings has affirmed the foreign and local currency long-
and short-term Issuer Default Ratings (IDRs) at 'BB' and 'B',
respectively, of Banco Ve por Mas, S.A. Institucion de Banca
Multiple (BBX+). Fitch also affirmed BBX+'s Viability Rating (VR)
at 'bb' and its national scale ratings at 'A(mex)'/'F1(mex)'. The
Rating Outlook on the long-term ratings is Stable.

In addition, Fitch has affirmed the national scale ratings of Casa
de Bolsa Ve por Mas, S.A. de C.V. (CBBX+) and Arrendadora Ve por
Mas, S.A. de C.V. Sofom E.R. (AXB+) at 'A(mex)'/'F1(mex)'. The
Rating Outlook on the long-term ratings is Stable.

KEY RATING DRIVERS

IDRS, NATIONAL RATINGS AND SENIOR DEBT

BBX+'s IDRs and national scale ratings are driven by its intrinsic
financial strength that is reflected on its VR of 'bb'. BBX+'s VR
reflects the bank's modest franchise and less diversified business
model, its acceptable asset quality and diversified funding
structure. The bank's profitability metrics are weaker than those
of its closest peers, albeit are improving, is another factor
considered in its ratings. The VR also considers the bank's higher
risk appetite for growth but partially mitigated by healthy
capitalization metrics.

BBX+ is a mid-sized bank with a modest franchise focused on
commercial lending (82% of total gross loans) with a small
presence in mortgages credits and a minimum portion in consumer
loans. The bank serves many sectors of the economy, but it has a
noticeable focus in agribusiness loans, where is a significant
player in the Mexican baking system. According to National Banking
and Securities Commission (CNBV by its acronym in Spanish)
information, at February 2018 the market share of BBX+ regarding
total assets, gross loans and customer deposits was 0.61%, 0.74%
and 0.67% respectively.

In Fitch's view, the weakest link of the bank's financial profile
is its low profitability levels, although this is gradually
increasing due to improvements in funding mix, as well as well-
controlled credit costs. At 1Q18 the operating profit to RWAs was
of 1.43%, considerably higher than the 0.89% average of the last
four years but still low for the rating level. The bank's results
have been pressured by its aggressive strategy of growth, which
has resulted in higher operating expenses. Nevertheless, the bank
has implemented strict guidelines to improve its profitability
over the next three years. Infrastructure expenditures will be
gradually reduced through the next years since the bank has almost
reached its desired installed capacity.

BBX+ has been able to maintain an acceptable asset quality metrics
despite the accelerated loan growth (23.5% YoY at 1Q18). At 1Q18
the impaired loans to gross loans ratio (NPL ratio) stood at
1.81%, higher levels than the average of the last four years of
1.33%. The NPLs increased due to more aggressive underwriting
standards during 2016, which has been reverted in 2017. Fitch
believes the bank will be able maintain asset quality under
control due to its tightened underwriting standards and good
levels of collaterals.

Fitch considers BBX+'s funding and liquidity profile as one of its
primary financial strengths. The bank has a fairly well-
diversified funding structure. It has access to customer deposits
(69% of total funding). The bank also gets funding from local
development banks (26.1%), which helps to match the conditions
(interest rate, term and currency) of its balance sheet. The bank
complements the rest of its funding with public long-term debt
issuances (5%). At 1Q18 the loans to deposits ratio was 143.4%,
close to the 142.1% average for the last four years.

Fitch believes BBX+'s capitalization metrics are good and provide
some cushion to absorb losses. At 1Q18 the FCC to Risk Weighted
Assets (RWAs) ratio stood at 14.1%, slightly better than the
average of 13.9% of the last four years. While capital ratios have
been declining due to its strategy of faster expansion, the
shareholder's propensity to support the bank's growth through
capital infusions is proven. During 2017 the bank received an
additional MXN550 million from the shareholder. Fitch expects
BBX+'s capital ratios will be constrained as the growth strategy
continues, with FCC to RWA moving toward 13%. The bank's main
challenge will be to compensate for the decline with better
internal capital generation to substitute for the capital
infusions of shareholders and make the bank self-sufficient.

CBBX+'s and ABX+'s national ratings are derived from the support
they would receive, if needed, from their ultimate parent, Grupo
Financiero Ve por Mas, S.A. de C.V. (GFBX+). The group has a legal
commitment to its subsidiaries according to local regulation.
GFBX+'s creditworthiness is associated with its main subsidiary,
BBX+, whose national scale rating is 'A(mex)' with a Stable
Outlook. Both CBBX+ and ABX+ are core subsidiaries of the group,
which is reflected in operative synergies (crossed sales and
integration) and strategic alignment.

BBX+ has local senior unsecured debt, which Fitch also affirmed at
the level of the bank's national scale rating. Fitch believes the
likelihood of default of any given senior unsecured obligation is
the same as the likelihood of default by the bank.

SUPPORT RATING AND SUPPORT RATING FLOOR

BX+'s Support Rating and Support Rating Floor of '5' and 'NF',
respectively, reflect the bank's low systemic importance. Although
possible, external support cannot be relied upon.

RATING SENSITIVITIES

IDRS, NATIONAL RATINGS AND SENIOR DEBT

BBX+ ratings could be downgraded if the bank's profitability
deteriorates due to increases in credit costs. Specifically, if
the bank's operating profitability to RWAs remains consistently
below 1% that drives a Fitch Core Capital to RWAs ratios sustained
below a 12%.

BBX+'s ratings could be upgraded in the medium term if the bank
maintains asset quality and credit costs under strict control, so
that its operating profitability metrics are improved and
consistently maintained above 2% (operating profit as % of RWAs)
while maintaining reasonable and stable metrics of other financial
factors.

The bank's senior debt ratings would mirror any change in the
bank's national scale ratings.

CBBX+'s and ABX+'s ratings will be aligned with their ultimate
parent (GFBX+), whose credit quality is reflected in BBX+. Any
change in the bank's ratings would have a similar effect on the
ratings of both CBB+ and ABX+.

SUPPORT RATING AND SUPPORT RATING FLOOR

Upside potential for the SR and SRF is limited and can only occur
over time with a material growth of the bank's systemic
importance.

Fitch has affirmed the following ratings:

BBX+

  --Foreign currency long-term IDR at 'BB'; Outlook Stable;

  --Foreign currency short-term IDR at 'B';

  --Local currency long-term IDR at 'BB'; Outlook Stable;

  --Local currency short-term IDR at 'B';

  --Viability Rating at 'bb';

  --Support Rating at '5';

  --Support Rating Floor at 'NF'.

  --National Long Term Rating at 'A(mex)'; Outlook Stable;

  --National Short Term Rating at 'F1(mex)';

  --Senior Unsecured Long Term Debt at 'A(mex)'.

CBBX+

  --National Long Term Rating at 'A(mex)'; Outlook Stable;

  --National Short Term Rating at 'F1(mex)'.

ABX+

  --National Long Term Rating at 'A(mex)'; Outlook Stable;

  --National Short Term Rating at 'F1(mex)'.


CAMPECHE MUNICIPALITY: Moody's Cuts Issuer Ratings to B2
--------------------------------------------------------
Moody's de Mexico downgraded the issuer ratings of the
Municipality of Campeche to B2/Ba2.mx from B1/Baa2.mx. At the same
time, the outlook was revised to negative from stable.

RATINGS RATIONALE

The downgrade of Campeche's ratings was prompted by the continued
negative operating balances and an extremely poor liquidity
position in conjunction with a recurrent use of short term debt.
Moody's expects that the municipality will continue to face
challenges in improving its operating balances and liquidity will
remain extremely tight over the next 18 months.

Between 2015 and 2017, Campeche's gross operating balance (GOB)
averaged -8.3% of operating revenues, comparing poorly with the
median of the Mexican municipalities rated at B1 (-6.4% of
operating revenues). The weak results are primarily due to
significant growth in personnel and general services that outpaced
operating revenue growth. Also, Campeche shows a weaker evolution
in terms of federal participations compared to the national
average (2% vs 8%), due to the contraction of oil production.
Moody's estimates that the municipality's GOB will continue to be
negative at -5.2% of operating revenues in 2018-19.

Campeche shows an extremely poor liquidity position. In 2017, the
municipality's end-of-year cash balance stood at MXN 26 million
while its current liabilities were of MXN 316 million (28% of
operating revenues), resulting in a net working capital to total
expenditures ratio of -21% and a cash to current liabilities ratio
of 0.07 times, both below of the B1 median. Furthermore, over the
past two years, the municipality has recurrently used short-term
financings amounting to MXN 50 million to face liquidity
constrains. Moody's expects that Campeche's ratio of cash to
current liabilities will average 0.08x in the next two years,
maintaining the municipality's strong dependence on short term
debt.

Offsetting some of these pressures are Campeche's low debt levels
and strong own source revenue collection, with ratios of net and
indirect debt and own source revenues to operating revenues of
10.9% and 39.1%, respectively, which compare favorably with the B1
medians. The municipality also benefits from a lack of
contingencies related to pensions and water company.

RATIONALE FOR THE NEGATIVE OUTLOOK

The negative outlook reflects Campeche's ongoing challenges in
consistently improving its operating balances, which could lead to
a further deterioration in liquidity and an increase in debt
levels.

WHAT COULD CHANGE THE RATING UP/DOWN

Given the negative outlook a rating upgrade in the near future is
unlikely. The ratings could stabilize if Campeche improves its
operating and financial balances, resulting in a sustained
improvement in liquidity. Conversely, a continued deterioration in
liquidity, in conjunction with more use of short term debt could
result in downward rating pressure.

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 Campeche's rating is between January 1,
2013 and December 31, 2017.


ELEMENTIA: Fitch Affirms IDRs at 'BB+', Outlook Stable
------------------------------------------------------
Fitch Ratings has affirmed Elementia, S.A.B. de C.V.'s (Elementia)
Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs)
at 'BB+', as well as its long-term national scale rating at
'A+(mex)'. The Rating Outlook is Stable.

Elementia's ratings reflect its strong business profile
characterized by geographic and product line diversification,
leading market shares in copper and in several of its building
systems products, which have high brand recognition. Other factors
include a well-developed distribution network, stable operating
results and the company's shareholders' strength. Factors that
limit Elementia's ratings are its history of high or volatile
leverage, the cyclicality of the construction industry, and scale
relative to competitors.

KEY RATING DRIVERS

Broad Product Offering: Elementia's profitability is supported by
a diversified revenue base and wide distribution network and
product offerings. The cement division (56% of consolidated
EBITDA) should remain the highest margin segment. The metal
segment (24%) applies a cost-plus margin formula, allowing it to
pass through metal price variations to end customers, resulting in
more stable profitability. The building systems segment (20%)
sells a variety of roofing, sidings, water-storage tanks and other
products throughout the Americas.

Expanding Cement Business: Elementia has built its cement division
over the last five years to become the largest contributor to
company EBITDA. This segment's relative contribution should
continue to grow in 2018 as Elementia ramps up its 1.5 million
metric tons (MT) expansion of its Tula cement plant and gains
efficiencies at Giant Cement Holding Inc. (Giant), a U.S.-based
cement company serving the eastern United States. Elementia
acquired a 55% stake of Giant in fourth-quarter 2016 and has been
focused on upgrading these assets.

Balanced Funding Strategy: Elementia's leverage has been volatile,
partly due to greenfield investments in the cement division, as
well as asset acquisitions and dispositions within its business
portfolio. The company has partially financed its funding needs by
issuing shares in the equity markets for MXN3.9 billion (USD231
million) during 2015 and MXN4.4 billion (USD233 million) in 2016
through a rights offering, which it used to partially fund the
acquisition of its stake in Giant.

High Leverage Should Decline: Elementia's EBITDA should expand
above MXN5.0 billion in 2018 and to MXN5.5 billion in 2019, from
MXN4.4 million in 2017. Net adjusted debt/EBITDA should be around
2.5x by 2019, down from 3.2x as of first-quarter 2018. The main
drivers of deleveraging should be the ramp-up of Elementia's
cement expansion plant in Tula, Mexico, stronger pricing in the
U.S., and cost efficiencies. The reopening of Elementia's Indiana
fiber cement facility, which began to ramp-up early 2018, should
also contribute.

Positive FCF Expected: The company's FCF was negative MXN2.2
billion in 2017 largely due to increased working capital as a
result of high inventories, sharply higher copper prices and the
launching of new products in the building system segment which
have a higher production time. In addition, the company presold
cement during 2016 anticipating the start-up of the Tula plant
resulting in higher cash flow during 2016 and also invested in
upgrading its U.S. Cement assets. Fitch projects solid cash flow
from operations (CFFO) of approximately MXN3.1 billion in 2018 and
MXN3.4 billion in 2019, which should allow Elementia to finance
additional expansion or lower net leverage through FCF of about 4%
of revenue beginning in 2019.

Environmental Regulations: The company's use of chrysotile fibers
(the sole form of asbestos still in use) for production of fiber-
cement products has decreased considerably, with all its
facilities set to produce using different technologies. These
include the use of cellulose and polyvinyl alcohol fibers, which
the company uses to make flat panels and other products. Although
the company's use of chrysotile has been in line with
international standards and local regulations and Elementia has
avoided litigation for its chrysotile use, future claims cannot be
ruled out.

DERIVATION SUMMARY

Elementia's 'BB+' ratings reflect the company's broad product
offering relative to regional cement producers such as Grupo
Cementos de Chihuahua (BB/Stable) and U.S. market leader of fiber-
cement siding and backerboard, James Hardie (BBB-/Stable). This
diversification is offset by Elementia's higher and more volatile
leverage metrics as well as relatively weaker standalone business
profiles in Cement or fiber-cement products. James Hardie's gross
debt/EBITDA is expected at around 3x in 2018 due to a recent
acquisition. This compares with Elementia's gross leverage of
around 4x soon after the Giant acquisition. Elementia's strong
financial access due to the strength of its shareholders, who form
part of large Mexican business groups, its higher geographic and
product diversification, projected gross deleveraging to around 3x
by 2019, and its use of a balanced funding strategy, position it
one notch above Grupo Cementos de Chihuahua (GCC), despite GCC's
stronger regional cement business and low gross leverage below 3x.

A weaker competitive position and geographic diversification than
major global peers, notably Cemex, S.A.B. de C.V. (BB-/Positive)
based on scale and size of cement operations is offset by a
balanced funding strategy, solid financial flexibility due to
shareholder strength and product diversification. Fitch projects
Elementia's net leverage below 3x by 2018, which compares against
expectations of around 4x for Cemex. The Positive Outlook on Cemex
is predicated on, among other factors, a net leverage below 4x.
The materialization of Cemex's Outlook would position Elementia
one notch above Cemex. Aside from Elementia's lower projected
leverage, Fitch believes Elementia's growth profile is higher than
Cemex.

KEY ASSUMPTIONS

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

  --Mid-to-high-single-digit revenue growth for 2018-2019,
reflecting primarily revenue growth in building systems and cement
divisions;

  --Cement sales volumes grow double digits in 2018 and mid-high-
single-digits in 2019 reflecting the expansion in Tula, Hidalgo
and to lesser higher sales volumes of acquired assets;

  --The exchange rate averages about 19 Mexican pesos per U.S.
dollar;

  --EBITDA margins remain around 18%-19% in 2018-2019;

  --FCF positive in 2018 and 2019.

RATING SENSITIVITIES

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

  --Positive rating actions could be driven by a strengthening of
Elementia's business and financial positions. Positive FCF
generation and stable operating results through industry and
economic cycles resulting in a track record of sustained total
debt/EBITDA around 2.5x and net debt/EBITDA below 2x could have
positive implications for the rating.

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

  --Negative factors that could affect the company's credit
profile include, among others, declining market shares along
business lines and loss of competitive position, reduced operating
cash flows and profitability, and reduced liquidity. Expectations
of total debt/EBITDA above 4x or net debt/EBITDA above 3.5x would
likely result in negative rating actions.

LIQUIDITY

Solid liquidity: Elementia refinanced USD305 million of debt,
which, coupled with USD220 million of equity raised by Elementia,
was used to fund the Giant acquisition. The company raised MXN6.4
billion of bank debt in 2017 to repay the committed credit
facilities, which were used to fund the acquisition. As a result,
Elementia faces minimal debt maturities until 2020 when the bulk
of bank debt begins to amortize. The company's cash balance as of
first-quarter 2018 was MXN2.3 billion.

Elementia's debt consists mostly of USD425 million in unsecured
notes due 2025 and bank debt raised to fund investments in the
cement division. Increased cash flow generation from Giant's
integration and organic cash flow growth from Elementia's
expansion of its Tula, Hidalgo plant should result in leverage
trending to around 3.0x by 2019 on a gross basis or 2.5x on a net
basis from the 3.7x and 3.2x registered as of first-quarter 2018.

FULL LIST OF RATING ACTIONS

Fitch has affirmed Elementia's ratings as follows:

  --Long-Term Foreign Currency Issuer Default Rating (IDR) at
'BB+';

  --Long-Term Local Currency IDR at 'BB+';

  --Long-Term national scale rating at 'A+(mex)';

  --Senior unsecured USD425 million notes at 'BB+'.


===============
P A R A G U A Y
===============


TELEFONICA CELULAR: Fitch Affirms IDRs at 'BB+', Outlook Stable
---------------------------------------------------------------
Fitch Ratings has affirmed the Long-Term Foreign Currency Issuer
Default Ratings (IDRs) of Telefonica Celular del Paraguay S.A.
(Telecel) at 'BB+' with a Stable Outlook. Fitch has also affirmed
Telecel's USD300 million senior unsecured notes at 'BB+.'

Telecel's ratings reflect its leading market positions in
Paraguay, supported by its extensive network and distribution
coverage, and the strong brand recognition of Tigo. The company's
competitive strengths have enabled stable operational cash flow
generation and high margins, resulting in the company's solid
financial profile, with leverage that is considered low for the
rating category. Negatively, the company's ratings are tempered by
its persistent negative free cash flow (FCF) generation, amid
intense competition.

Telecel's ratings also reflect a strong linkage between the
company and its parent, Millicom International Cellular S.A (MIC;
BB+/Stable), given Telecel's strategic and financial importance to
the parent. The company also benefits from synergies related to
MIC's larger scale and management expertise. Telecel is a 100%-
owned subsidiary of MIC.

KEY RATING DRIVERS

Solid Market Position: Telecel is a wholly owned subsidiary of MIC
and the largest mobile operator in Paraguay, with an estimated
mobile market share of 53%. Telecel has an entrenched position
with the most extensive network in Paraguay under the Tigo brand.
Fitch believes Telecel's market leadership will remain intact,
supported by continued expansion in its fixed-line services,
partly through acquisitions.

Positive Revenue Diversification: Fitch expects Telecel's home and
business-to-business segment to represent close to 35% of total
revenues by 2020, supported by the continued expansion of its
network coverage. Telecel's mobile segment, which generates about
70% of its revenues, is expected to weaken over the medium to long
term as a result of declining voice/SMS revenues and competitive
pressures. Demand in fixed-line services remains strong, given the
low penetration of services in Paraguay.

Solid Profitability: Telecel's EBITDA margin improved to 50%
during 2017, compared with 45% at year-end 2016 as a result of
operating cost reductions as well as a higher proportion of
service during the period. Fitch believe that further margin
expansion will be limited due to competitive pressures and an
increasing revenue contribution from lower-margin pay-TV and
broadband services. Nevertheless, Telecel's average projected
margin over the medium to long term is expected to remain solid
compared with its regional telecom peers.

Negative FCF: Telecel's negative FCF generation is unlikely to
reverse in the medium term due to its high dividends to its
parent, Millicom. Fitch expects cash upstream to remain high,
given its relatively stable financial position, pressuring FCF
margin into negative territory. Fitch projects cash flow from
operations (CFFO) to remain solid and increase to PYG1.2 trillion
annually over the medium term, covering its capex estimated at
about PYG600 billion annually, resulting in solid pre-dividend
FCF.

Low Leverage: Fitch believes Telecel's solid financial profile
will remain intact over the medium term, backed by its operational
cash flow generation. The company's net leverage should remain
below 2.0x over the medium term, despite the expected continued
negative FCF, as a result of its growing revenues mainly driven
from double-digit growth coming from the home business. The
company's net leverage ratio remained solid at 1.4x as of December
31, 2017, which is considered low for the rating category.

DERIVATION SUMMARY

Telecel is well-positioned relative to its regional telecom peers
in the 'BB' category based on its high profitability and low
leverage, and its leading mobile market position, backed by its
solid network competitiveness and strong brand recognition.
Telecel boasts a strong financial profile with high profitability
and low leverage for the rating level, compared to its regional
telecom peers in the same rating category. The company's credit
profile is in line with its peer Comcel Trust (BB+), an integrated
telecom operator and MIC's another subsidiary in Guatemala.
Comcel's financial and business profiles are stronger than
Colombia Telecomunicaciones S.A. E.S.P., an integrated telecom
operator in Colombia rated 'BB'/Outlook Stable. The company's lack
of geographic diversification and weak revenue diversification, as
well as its high shareholder return temper the credit.
Parent/subsidiary linkage is applicable given MIC's strong
influence over Telecel's operations and MIC's reliance on
Telecel's dividend upstream.

KEY ASSUMPTIONS

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

  --Low-single-digits revenue growth mainly driven by strong
growth in the fixed-line operation;

  --EBITDA margins to slightly deteriorate due to increased
competition and higher contribution from fixed-line services;

  --Capex-to-sales ratio to increase in 2018;

  --Negative FCF generation to remain uncurbed in the medium term,
as a result of dividend distributions to parent;

  --Net leverage remaining low at 1.5x over the medium term.

RATING SENSITIVITIES

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

  --A positive rating action on Telecel would likely be linked to
a positive rating action on Millicom. MIC's business position and
overall financial profile continue to be solid for the rating
category.

  --Continued improvement in MIC's overall financial results could
lead to positive rating actions for both entities.

  --Positive rating action on sovereign ratings of Paraguay.

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

  --Continued deterioration in the company's EBITDA generation
along with weak revenue growth due to competitive pressures,
including material loss in mobile market share, ARPU erosion, and
substantial increase in marketing expenses.

  --Persistent negative FCF generation due to higher than expected
shareholder distributions and/or capex.

  --A negative rating action on Millicom.

LIQUIDITY

Telecel's liquidity position is adequate, supported by its readily
available cash balance, low leverage and solid cash flow
generation. As of Dec. 31, 2017, the company held a cash balance
of PYG 488 billion, which fully covered its short-term debt of
PYG95 billion. The company has no material debt repayments until
2022, which further bolsters its financial flexibility. The
company's total debt as of Dec. 31, 2017 was PYG 2,726 billion,
which consisted of a USD300 million senior unsecured bond due 2022
and long-term senior secured local currency bank loans totalling
PYG677 billion.

FULL LIST OF RATING ACTIONS

Fitch has affirmed the following ratings:

Telefonica Celular del Paraguay S.A.

  --Long-Term Foreign Currency IDR at 'BB+', Outlook Stable;

  --USD300 million senior unsecured notes at 'BB+.'


================================
T R I N I D A D  &  T O B A G O
================================


CL FIN'L: Government Recovered Over $10 Billion From CLICO
----------------------------------------------------------
Trinidad Express reports that in delivering the mid-year budget
review, Finance Minister Colm Imbert said the Government had
recovered over $10 billion in cash and company shares from CLICO
and CLICO Investment Bank since the People's National Movement
took office in September 2015.

Mr. Imbert provided Parliament and the population with a breakdown
of the $10 billion, saying the Government recovered some 26 per
cent of Republic Bank valued at $4.314 billion along with $6
billion in cash and other assets, according to Trinidad Express.

                           *     *     *

As reported in the Troubled Company Reporter-Latin America on July
26, 2017, CL Financial Limited shareholders have vowed to pay back
a TT$15 billion (US$2.2 billion) debt to the Trinidad Government
after scoring what it called a "major legal victory" against the
Keith Rowley administration.

Caribbean360.com said the Trinidad Government went to the High
Court with a petition to have the company liquidated.  Finance
Minister Colm Imbert had explained then that the move was
in response to attempts by the company's shareholders to take
control of the board.  However, after a near seven-hour hearing,
High Court Judge Kevin Ramcharan sided with the company
shareholders, ruling that the action by the Government was
premature.

The TCR-LA, citing Trinidad Express, reported on Aug. 6, 2015,
that the Constitution Reform Forum (CRF) has called on Finance
Minister Larry Howai to refrain from embarking on an "unnecessary
drain on the Treasury" by appealing the decision of a High Court
judge, who ordered that the Minister fulfil a request by president
of the Joint Consultative Council (JCC) Afra Raymond for financial
details relating to the bailout of CL Financial Limited.  The CRF
issued a release stating that if the decision is appealed, not
only will it be a waste of finance but such a course of action
will also demonstrate a "lack of commitment by the Government to
the spirit and intent of the Freedom of Information Act FOIA",
under which the request was made, according to Trinidad Express.

On July 7, 2014, Trinidad Express said that the Central Bank has
placed the responsibility of voluntary separation package (VSEP)
negotiations for workers at insurance giant Colonial Life
Insurance Company Ltd. (CLICO) with the company's board, after
which it will review accordingly, the bank said in a statement.
The bank's statement follows protest action by CLICO workers,
supported by their union, the Banking, Insurance and General
Workers' Union (BIGWU), outside the Central Bank in Port of Spain,
according to Trinidad Express.

In a separate TCRLA report on June 26, 2014, Caribbean360.com said
that the Trinidad and Tobago government has welcomed an Appeal
Court ruling that the Attorney General Anand Ramlogan said saves
the country from paying out more than TT$1 billion (TT$1 = US$0.16
cents) to policyholders of the cash-strapped CLICO.  The Appeal
Court overturned the ruling of a High Court that ruled members of
the United Policyholders Group (UPG) were entitled to be paid the
full sums of their polices. CLICO financially caved in on itself
at the end of 2008 after the investment instruments of major
policyholders matured and they wanted hundreds of millions of
dollars they were owed.

On Aug. 6, 2013, the TCR-LA, citing Caribbean360.com, said that
over TT$8 billion worth of CLICO's profitable business will be
transferred to Atruis, a new company that will be owned by the
state.  The Trinidad Express said that the Cabinet approved the
transfer as the Finance and General Purposes Committee continues
to discuss a letter of intent hammered out by the Ministry of
Finance and CL Financial's 400 shareholders, which envisions
taxpayers will recover the more than TT$20 billion Government has
injected since 2009 to keep CL subsidiary CLICO and other
companies afloat.

At its annual general meeting in Sept. 2013, CL Financial
shareholders voted to extend the agreement with Government until
August 25, 2014, while Cabinet decides on a new framework accord
to recover the debt owed to Government through divestment of CL
subsidiaries, including Methanol Holdings, Republic Bank,
Angostura Holdings, CL World Brands and Home Construction Ltd.,
Caribbean360.com related.  Proceeds from the divestment of these
assets will go toward Government's recovery of the billions it
pumped into CLICO.

TCRLA reported on Sep 22, 2011, Caribbean News Now, citing
Reuters, said that the cost of the Trinidad and Tobago
government bailout of CL Financial Limited is likely to rise to
more than TT$3 billion.


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


KELLOGG: Venezuela Seizes Facilities as Firm Abandons Caracas
-------------------------------------------------------------
Carlos Camacho at The Latin American Herald reports that embattled
Venezuelan head of state Nicolas Maduro said workers were going to
take over the factories of the former local unit of Kellogg, hours
after the U.S. food giant announced it was quitting the country
over worsening business conditions.

News of Kellogg quitting Venezuela after 56 years operating
locally come only five days before a Presidential vote, which the
U.S. and the European Union have denounced as fraudulent and where
Maduro is seeking reelection for another six years, according to
The Latin American Herald.  The opposition has decided to abstain
after it and its candidates were banned from running and is
denouncing the rest of the candidates as Maduro stooges hired to
endorse a rigged vote, the report notes.

"The President of the Republic, Nicolas Maduro, informed that the
workers in the Alimentos Kelloggs enterprise, located in Aragua
state have assumed the reins of that company," official news
agency AVN reported, the report relays.  During a public
appearance, President Maduro again referred to the Kellogg
shutdown saying it was "illegal and unconstitutional," he added.

Venezuela has been suffering under hyperinflation since October
and prevalent shortages of food and medicine are giving way to a
massive humanitarian crisis, the report notes.  Some 4 million
Venezuelans have done like Kellogg and quit the country since the
"Bolivarian Revolution" of Maduro and his mentor and predecessor
Hugo Chavez began in 1999, the report recalls.

The report says that LAHT received a document, stating that
Kelloggs was shutting down its Venezuelan unit, sacking its 600
local workers immediately from May 15th.

"We inform that Alimentos Kellogg S.A. (Kellogg Venezuela) has
been forced to shut down operations in the country", the statement
said, adding, "there has been a material change in the
entrepreneurial environment, including a turn for the worse in our
access to key materials as consequence of the present
restrictions," the report discloses.

Venezuela has had price and currency exchange controls since 2003,
restrictions that, coupled with declining oil prices between 2014-
1017, led to a 37% drop in Gross Domestic Product since 2014, a
fall steeper than that of the U.S. economy during the Great
Depression of the 1930s, the report notes.  At the same time as
the country prevented Kellogg from raising prices and/or having
access to dollars, the country is undergoing hyperinflation
clocked at 23,000% a year, the report relays.

Even when forcing foreign companies to endure a near impossible
business environment, Maduro (and Chavez before him) take every
company quitting the company as a personal affront, of which there
have been several hundred since 1999, according to Fedecamaras,
the largest private-sector guild in the country, the report notes.
Other consumer product companies like General Mills, Kimberly
Clark, and Clorox, airlines such as United and Delta, carmakers
like GM and many others have all abandoned Venezuela in recent
years, with the holdouts -- including Ford and Coca-Cola --
operating at a greatly reduced scale, the report adds.

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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