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

               Tuesday, July 3, 2018, Vol. 19, No. 130


                            Headlines



A N T I G U A  &  B A R B U D A

ANTIGUA & BARBUDA: Confronts US Over Unsettled Gaming Dispute


A R G E N T I N A

PROVINCE OF MENDOZA: S&P Affirms 'B+' ICR, Outlook Stable


B R A Z I L

AEGEA SANEAMENTO: Moody's Rates BRL600MM Debenture Issuance 'Ba2'
JBS SA: Ex-Chair Joesley Batista Charged With Corruption


D O M I N I C A N   R E P U B L I C

DOMINICAN REPUBLIC: Group Slams 'Disrespect' for Coastal Zoning


M E X I C O

BANORTE: Moody's Cuts BNTECB 07 Senior Certificates to Baa3
CEMEX SAB: Colombian Unit Sanctioned for Violating Rules


N I C A R A G U A

NICARAGUA: Demand Disarmament of Militias Loyal to President


P U E R T O    R I C O

AQUAMAR POOL: Taps Carmen Santos as Accountant
SPANISH BROADCASTING: Incurs $3.37 Million Net Loss in 1st Quarter


V E N E Z U E L A

VENEZUELA: Will Struggle to Recover Lost Oil Production


                            - - - - -


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


ANTIGUA & BARBUDA: Confronts US Over Unsettled Gaming Dispute
-------------------------------------------------------------
Caribbean360.com reports that Antigua and Barbuda is losing hope
that "a sense of justice and fairness would prevail" in its
15-year dispute with the United States.

And now it may ask the Director-General of the World Trade
Organization (WTO) to appoint a mediator in its 15-year contention
with the United States, the twin-island nation's Ambassador Sir
Ronald Sanders told the organization's Dispute Settlement Body
(DSB), according to Caribbean360.com.

The report notes that the dispute between the two countries
revolves around the US government's efforts to prevent Americans
from gambling at online sites based in Antigua and Barbuda.
Antigua and Barbuda won the right to suspend obligations to the US
in respect of intellectual property rights to recover US$21
million annually, the report says.

"Antigua and Barbuda has not acted on that authorization in the
hope that the United States would agree to a fair and reasonable
settlement.  It has not done so because we continued to hope that
a sense of justice and fairness would prevail. But we are now
losing all hope," Sir Ronald told the DSB, the report relays.
"After a long period of exhausting attempts to engage the United
States, Antigua and Barbuda is now contemplating approaching the
Director-General under the DSU [Dispute Settlement Understanding]
provisions to join in seeking a mediated solution that would bring
much needed relief after these arduous 15 years of damage to our
economy."

The report notes that the Ambassador told the WTO member states
that Antigua and Barbuda feels disadvantaged by the US, whose
violation of the General Agreement on Trade in Services "has
caused trade losses of US$315 million to Antigua and Barbuda's
small economy over the last 15 years".

He pointed out that while the losses to Antigua and Barbuda are
significant, "it does not total 0.1 per cent of one year of the
GDP of the United States", emphasizing that "the economy of the
United States is 20,000 times larger than Antigua and Barbuda's,"
the report relays.

Explaining his country's position, Mr. Sanders said: "Antigua and
Barbuda has an obligation not only to itself, but to all other
nations who uphold the principles and rules of the WTO and look to
it for justice. We act in the interest of all," notes the report.

In response, the US delegate said that his country had offered the
Government of Antigua and Barbuda "creative and generous
settlements in 2008 and 2013" that were declined, the report
relays.

He added that the US continues to be interested in negotiations
with Antigua and Barbuda and discouraged mediation by the WTO
Director-General, the report discloses.

Ambassador Sanders replied that the US offers had been declined
because they did not total even one per cent of the losses
experienced by Antigua and Barbuda, the report notes.

Delegations from Barbados, Jamaica, Cuba, Venezuela and Dominica,
speaking for all members of the Organization of Eastern Caribbean
States, supported Antigua and Barbuda, the report relays.  No
country spoke in support of the United States, the report notes.

The DSB took note of the discussion which remains open on its
agenda, the report adds.



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


PROVINCE OF MENDOZA: S&P Affirms 'B+' ICR, Outlook Stable
---------------------------------------------------------
S&P Global Ratings affirmed its 'B+' long-term foreign and local
currency issuer credit ratings on the Argentine province of
Mendoza. The outlook remains stable.

OUTLOOK

S&P said, "The stable outlook reflects our view that Mendoza's
fiscal performance will remain balanced in the next 12 months,
despite higher debt service payment and more challenging economic
conditions. We expect stronger operating results, coupled with
continued financing from local and international issuances, to
counterbalance the higher debt service payments and infrastructure
investments we expect the province to pursue in 2018. We expect
the financial management to continue implementing prudent fiscal
policies amid Argentina's challenging economy in the next 12 to 18
months."

Downside scenario

S&P said, "We could lower our ratings on Mendoza during the next
12 months if we lower the sovereign ratings, if we perceive that
the province's financial performance has worsened due to poor
financial management, or if its debt burden increases beyond our
base-case scenario."

Upside scenario

S&P said, "Because we don't believe Mendoza meets the conditions
for us to rate it above the sovereign, we would only consider
upgrading the province during the next 12 months if we were to
raise our sovereign ratings on Argentina. Such an upgrade would
have to be accompanied by an improvement in the institutional
framework for Argentine provinces, a track record of prudent
financial policies, consistent operating surpluses, and decreasing
after-capex deficits in the next 12 months. In this scenario, we
would likely see Mendoza's cash levels and its debt and liquidity
policies continuously improve."

RATIONALE

S&P said, "Our 'B+' rating on Mendoza reflects the province's
stronger operating performance due to improved financial
management. Since Oct. 30, 2017, when we raised our rating on
Mendoza to 'B+' from 'B' following our rating action on the
sovereign, the province has continued to pursue prudent fiscal
policies and effective debt management amid macroeconomic
difficulties in Argentina. However, foreign currency pressures and
higher interest rates in Argentina are likely to increase
Mendoza's debt service in the next two years. Additionally, we
believe that high inflation in Argentina, as well as Mendoza's
payroll expenses and capital expenditures (capex), will continue
to limit the province's budgetary flexibility.

"Despite increased inflation in Argentina following the
depreciation of the peso amid a very volatile market, we don't
expect inflation levels to alter Mendoza's fiscal path over the
next three years. We don't expect changes to the current tax
structure given the province's limited ability to raise revenue.
However, we do think Mendoza will continue reducing its tax burden
by steadily decreasing tariffs. This decrease partially reflects
the province's decision to reduce gross receipt taxes to stimulate
economic activity (and therefore improve tax collection), and
partially reflects the Fiscal Pact signed in 2017 between
Argentine provinces and the national government. At the same time,
the steady transfer of 15% of co-participation funds, as agreed
between the province and the federal government, should keep
modifiable revenues stable at 49% of operating revenues in 2018-
2020. We expect high inflation to continue to hamper the
province's budgetary performance as spending increases above
inflation, but we expect spending to stay below nominal national
GDP growth. The budgetary performance reflects Mendoza's ongoing
efforts to monitor spending and improve budgeting over the past
few years.

"In our base case, we assume operating balances will remain at a
surplus of around 1% of operating revenues in 2018-2020--a slight
improvement from 2017. At the same time, the province's budget
will remain rigid due to personnel and interest payments, which
will increase because of the higher domestic interest rates in
Argentina, the peso's depreciation, and infrastructure needs
ranging from schools to roads to public security. These factors
will result in continued deficits after capex over the next three
years. We expect the deficits to remain controlled and nearly flat
at 5.3% of total revenue in the forecast period. We forecast capex
to hover around 7% of total spending between 2018 and 2020.
Mendoza's financial management has made progress on controlling
expenditures amid a challenging economy, and has improved its debt
and liquidity policies. The current administration, led by Mr.
Alfredo Cornejo (UCR-Cambia Mendoza party; 2015-2019), has not
only approved budgets on time, but also has passed unpopular
pieces of legislation. The provincial government's measures to
curb spending, combined with improved budgetary procedures and
liability management, led to stronger 2017 fiscal results than we
predicted in our base case. Nonetheless, sustained high inflation,
which limits the administration's capacity to pursue financial
policies with a medium- to long-term plan, and the use of debt to
cover liquidity needs, pose difficulties for Mendoza's financial
management. We believe that Mendoza's management is in line with
that of domestic peers such as the provinces of Buenos Aires and
Cordoba, and that it has progressed in terms of budgeting
processes and liquidity planning."

The province's economy is very sensitive to commodity prices and
weather conditions, as well as the sovereign's economic
performance, given that about half of its revenues come from
federal transfers. S&P said, "We estimate that in 2018, Mendoza's
economy will perform in line with the sovereign's and will grow
1.5%. However, because the province is primarily an exporter, we
believe the peso's depreciation could somewhat benefit the economy
by mitigating lower domestic demand. We estimate the local GDP per
capita at $8,257 in 2018, while the three-year average local GDP
will reach $9,158--still below the national average of $14,049."

S&P said, "We continue to view the institutional framework for
Argentine local and regional governments (LRGs) as very volatile
and underfunded. However, we believe the outcome of reforms and
the pace of their implementation are becoming more predictable.
This comes amid increased dialogue between LRGs and the national
government to address various fiscal and economic challenges that
we expect to remain in the short to medium term.

"Improved fiscal results have boosted the province's liquidity
position. We estimate that Mendoza's free cash and liquid assets
will cover almost 53% of its estimated debt service of ARS9.7
billion in 2018. Given that on average 30% of the province's debt
service payments are in foreign currency, the depreciation of the
peso could weaken Mendoza's liquidity position. However, this
exchange rate risk is offset by Mendoza's dollar-linked royalty
income, which should represent 5% of operating revenues in 2018.
We think Mendoza's access to external liquidity is limited,
largely due to our evaluation of the limited development of
Argentina's domestic capital markets and of the domestic banking
system. Mendoza, like other public entities in Argentina, doesn't
have a strictly committed credit line, but it has established
relationships with major banks, including Banco Naci¢n (not
rated), which is the province's financing agent and provides it
with an overdraft facility.

"Because around 44% of Mendoza's debt stock is denominated in
foreign currency, we expect an increase in its tax-supported debt
as a proportion of its consolidated operating revenues in 2018, to
52% from 50% in 2017. Since Mendoza has issued in local and
international markets, its debt service has increased over the
past year to 12% of operating revenues. We expect that in 2018,
the province's debt service will be around 11.5%, reflecting a
weaker peso and higher domestic interest rates. Interest payments
should average around 6% of operating revenues between 2018 and
2019 and could be subject to increases due to exchange rate spikes
and hikes in the interest rate set by the Central Bank. We expect
Mendoza to continue to pursue liability management policies to
smooth its debt service profile, particularly in 2018, and to tap
domestic and international markets to cover its liquidity needs
over the next three years.

"Mendoza's contingent liabilities stem from its government-related
entities (GREs): AySAM (water and sanitation) and STM
(transportation). We believe the GREs are self-supporting, and
estimate that support in the event of stress would be below 2% of
Mendoza's projected operating revenues in 2018. In our view, these
entities provide services that are essential to Mendoza and are
unlikely to require financial support from the province."

In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable. At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee by
the primary analyst had been distributed in a timely manner and
was sufficient for Committee members to make an informed decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.

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

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

  RATINGS LIST
  Ratings Affirmed

  Mendoza (Province of)
   Issuer Credit Rating                   B+/Stable/--
   Senior Unsecured                       B+



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B R A Z I L
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AEGEA SANEAMENTO: Moody's Rates BRL600MM Debenture Issuance 'Ba2'
-----------------------------------------------------------------
Moody's America Latina Ltda. assigned Ba2/Aa1.br (respectively, in
Moody's global scale and Brazil's national scale) to AEGEA
Saneamento e Participacoes S.A.'s new debenture issuance of up to
BRL 600 million (3rd issuance) due in 2025. The outlook is stable.

The senior unsecured non-convertible debentures have two tranches.
The first has three customized principal payments from 2021-2023
and semi-annual interest payments staring after issuance while the
second has two annual payments in 2024-2025 and annual interest
starting in 2019. AEGEA will use the issuance proceeds to fund its
investment needs, repay debt and improve cash liquidity. The
debentures have cross default provisions with other outstanding
debt from the company as well within the group and contains a Net
Debt to EBITDA financial covenant that must be equal or lower than
3.5x, verified on a semi-annual basis, which could trigger debt
acceleration, among other clauses.

The debenture's Ba2 rating factors in a one notch down structural
subordination from AEGEA's Corporate Family Rating (Ba1) since
AEGEA does not hold any operations and is strictly a vehicle for
controlling stakes on the operating subsidiaries. AEGEA largely
depends on the regular payment of dividends up-streamed by its
operating subsidiaries to meet its obligations, equity investment
commitments and potential cash requirements related to its
guarantees. The debenture's Aa1.br national scale rating reflects
the standing of the company's credit quality relative to its
domestic peers.

RATINGS RATIONALE

AEGEA's ratings reflect its stable business profile, the company's
solid positioning and relatively strong pricing power. The company
benefits from very limited competition. Very diverse operations
result in lower exposure to water scarcity problems shown by
overall lower volume fluctuations and stable cash flows. AEGEA's
tariff mechanism and regulatory framework are overall transparent
and predictable with annual tariff adjustments to pass through
inflation. Expansion targets, quality standards and capital
investments are all pre-settled under the company's concession
contracts.

AEGEA's management team is experienced and the company's
shareholders show sound corporate governance practices in its
views, further supporting the ratings. Moody's understands that
shareholders will continue to actively support the company's
credit quality and liquidity. Moody's also expects that AEGEA will
continue to have sound access to the banking and capital markets
and will prudently manage its leverage, maintaining discipline on
its financial policy and mitigating cross-currency exposure risks
from the Note's issuance.

Another consideration for the ratings is the fact that AEGEA
operates in various jurisdictions with different granting
authorities. Moody's notes that Brazil's water/sanitation
regulatory framework is relatively new and under development. The
ratings are tempered by AEGEA's relative small scale and
significant expansion plan that together with a track record of
high dividend payments will continue to pressure leverage. New
investments and acquisitions could negatively impact the company's
credit quality as well as material delays or costs overruns on the
capital investment program.

The stable outlook follows the outlook on Brazil, given the
domestic nature of the company's operations and, consequently, its
links to the local economic/regulatory environment, and ultimate
credit quality. It also considers the company will prudently
manage its leverage in line with the current credit quality, as
well as maintain discipline in its financial policy and count on
shareholder support if needed.

What Could Change the Rating - Up /Down

Moody's do not expect a rating upgrade in the short to medium term
given the stable outlook albeit an upgrade of Brazil's rating
could trigger upward pressure on the company's ratings given the
intrinsic linkages of AEGEA and the Brazilian sovereign. Also,
better than anticipated financial performance such that FFO
interest coverage stays above 3.0x and Debt to Capitalization
below 55% on a sustained basis could also trigger upward rating
pressure, however such upward pressure is somewhat limited to the
sovereign credit quality.

On the other hand, deterioration in the sovereign's credit quality
could exert downward pressure on AEGEA ratings as well as Moody's
assessment of weaker shareholders support. New investments and
acquisitions or further increase of the already significant
capital spending plan could also affect AEGEA's current credit
quality downwards. The ratings could also be downgraded if there
is a significant and sustained deterioration in the company's
credit metrics and liquidity or if there is a deterioration in its
subsidiaries performance or ability to upstream dividends.
Quantitatively, the ratings could be under downward pressure if
FFO interest coverage stays below 2.0x and Debt to Capitalization
above 75% on continued basis. AEGEA has cross-default clauses
within the group and operates through a centralized cash
management system.

The ratings could be revised downwards if there are material
delays or costs overruns on the capital investment program that
negatively impact revenues or lead to non-compliance with the
contractual targets. Its perception of deteriorated stability and
transparency of the regulatory regime would also add pressure to
the ratings as if volumes stay consistently below Moody's
forecast.

AEGEA is a holding company with 42 subsidiaries operating long
term water and sewage contracts and 4 PPP sewage contracts in
various municipalities across ten Brazilian States. The company
recently acquired a new concession through Companhia de Saneamento
do Norte, increasing its service coverage to around 7.6 million
customers from 5.4 million and also acquired a PPP with Guarulhos
municipality that has 1.3 million inhabitants.

In the LTM ended March 2018, AEGEA posted net revenues of BRL1.3
billion and EBITDA of BRL780 million, while the FFO interest
coverage was 2.7x and Debt to Capitalization 72%, as per Moody's
standard adjustments.

AEGEA started operations in 2010 and is one of the largest private
water utilities in Brazil, with around 37% of Brazil's market
share. AEGEA's shareholders are Equipav (not rated, 67.2% stake),
the Government of Singapore's Investment Corporation "GIC" (not
rated, 21.4% stake) and the International Finance Corporation -
IFC (Aaa, 11.4% stake).

The principal methodology used in these ratings was Regulated
Water Utilities published in June 2018.


JBS SA: Ex-Chair Joesley Batista Charged With Corruption
--------------------------------------------------------
AGWeb reports that federal prosecutors in Brazil charged JBS SA
former Chairman Joesley Batista, and two others with corruption.

The charges were filed against Batista, Francisco Assis a former
JBS executive, and Marcello Miller, a former federal prosecutor,
before a federal court in Brasilia, according to AGWeb.

The report notes that Mr. Batista and Mr. Assis had been exempted
from prosecution for confessing to bribery and agreeing to
cooperate with authorities in a plea deal signed last year.  The
Brazilian Supreme Court is deciding whether to annul the plea, the
report relays.

Lawyers for Mr. Batista and Mr. Assis said in a statement their
clients were innocent and the charges unfounded, the report says.

The charges, which are under seal, accuse Mr. Miller of being paid
BRL700,000 ($185,415) by Batista to help him and Mr. Assis reach
plea deals while Mr. Miller was still a federal prosecutor.

The testimony of Mr. Batista and other JBS executives included
allegations that they bribed nearly 2,000 politicians at all
levels of government in the past decade -- including President
Michel Temer, the report notes.

The report says that Mr. Temer faced corruption charges, but they
were blocked from going to trial by Brazil's Congress late last
year.

As reported in the Troubled Company Reporter-Latin America on
May 22, 2018, Moody's Investors Service upgraded JBS S.A. (JBS)'s
corporate family rating to B1 from B3. At the same time, the
senior unsecured ratings of its wholly-owned subsidiary JBS USA
Lux S.A. ("JBS USA") were upgraded to B1 from B2 and its senior
secured ratings to Ba3 from B1. The outlook for all ratings is
stable.



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D O M I N I C A N   R E P U B L I C
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DOMINICAN REPUBLIC: Group Slams 'Disrespect' for Coastal Zoning
---------------------------------------------------------------
Dominican Today reports that Puntacana Group PR Simon Suarez said
there's "disrespect for the territorial zoning of coastal areas,
citing illegal actions such as the elimination of dunes, sand
extraction, damage to coastal mangroves, coral reefs, wetland and
lagoon infill and extraction of construction materials from
rivers."

The former president of the National Hotels and Restaurants
Association cited the recent case of the revised land use in the
Punta Cana-Bavaro-Macao resort area, in the heels of a surprising
Tourism Ministry resolution that allows the construction of
buildings as high as 22 floors, according to Dominican Today.

"This has been done without supporting decisions in scientific
studies that justify these changes and without taking into account
the arguments of those who oppose them," Mr. Suarez said at the
First International Coastal Biodiversity and Tourism Symposium,
the report relays.

According to Dominican Today, Mr. Suarez said government agencies
sometimes show "a shocking disrespect to themselves and for their
own ordinances.  A revealing example is the acceptance of the
construction and the granting of tax incentives in Juan Dolio, for
a tower with 121 apartments 30 meters from the sea, disrespecting
the limitations imposed by the resolutions of the Tourism and the
Environment ministries."

"We still see," said Mr. Suarez, "that with the complicity of
those responsible for enforcing the law, illegal actions are
frequently reported, such as the irresponsible use of the 60
meters of beach; dune removal and sand extraction; damage to
coastal mangroves; damage to coral reefs; filling of wetlands and
lagoons, and extraction of construction materials in rivers,"
notes the report.  "Shortcuts are taken and due process is not
fulfilled, such as the obligation to listen to the communities and
other stakeholders involved, which could be affected by the
decisions of the authorities, whose regulatory power is not above
the community."

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.


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M E X I C O
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BANORTE: Moody's Cuts BNTECB 07 Senior Certificates to Baa3
-----------------------------------------------------------
Moody's de Mexico S.A. de C.V. has downgraded the ratings of
Banorte - BNTECB 07 and confirmed the ratings of Banorte - BNTECB
07-2 issued in connection with a Mexican collateralized loan
obligation (CLO) securitization. This action concludes the review
that Moody's initiated on December 26, 2017 when it placed the
affected ratings on review for possible downgrade.

The complete rating action is as follows:

BNTECB 07 Senior Certificates: Downgraded to Baa3 (sf) from Baa2
(sf) (Global Scale, Local Currency) and to Aa3.mx (sf) from Aa2.mx
(sf) (Mexican National Scale); ratings previously placed on review
for possible downgrade.

BNTECB 07-2 Subordinate Certificates: Confirmed ratings of Ba3
(sf) (Global Scale, Local Currency) and A3.mx (sf) (Mexican
National Scale); ratings previously placed on review for possible
downgrade.

Interest and principal payments to certificate holders are backed
by cash flows received from a portfolio of securitized loans
granted to Mexican states and municipalities and related
decentralized entities and originated by Banco Mercantil del Norte
S.A., Institucion de Banca M£ltiple, Grupo Financiero Banorte
("Banorte"; A3 bank deposit local currency, Aaa.mx). Most of the
loans are backed by revenues that states and municipalities
receive directly from the federal government (federal
participation revenues). The loans have been assigned to a trust
established in accordance with Mexican law.

Originator: Banco Mercantil del Norte S.A., Instituci¢n de Banca
M£ltiple, Grupo Financiero Banorte

Trustee: CI Banco S.A., Instituci¢n de Banca M£ltiple, Fiduc.

RATINGS RATIONALE

The downgrade of the ratings of the BNTECB 07 Senior Certificates
is driven primarily by Moody's updated assessment regarding the
credit quality of the underlying collateral. The collateral
quality has deteriorated over the past year in part due to the
weaker credit profile of the State of Baja California, an obligor
representing 13.9% of the pool balance as of May 2018. The
confirmation of the ratings of the BNTECB 07-2 Subordinate
Certificates reflects that these ratings remain well positioned
considering the updated assessment and the transaction structure.

Moody's had previously placed the ratings of these certificates on
review for possible downgrade due to considerations pertaining to
the credit quality of loans to the state of Baja California. In
September 2017, Moody's downgraded Baja California's issuer
ratings to Ba3/A3.mx from Ba2/A2.mx, reflecting the state's
continued debt accumulation and increasing liabilities, combined
with a deterioration in liquidity metrics.

Consistent with "Moody's Global Approach to Rating Collateralized
Loan Obligations" published in August 2017, in updating its
assessment of the collateral's credit quality, Moody's took into
account a credit measure for each underlying loan, including
either a credit rating or a credit estimate. Credit estimates are
unpublished point-in-time opinions of the approximate credit
quality of an individual security, financial contract, or issuer
for which no Moody's credit rating exists.

Its actions also reflect the correction of prior errors. During
the review period, Moody's identified errors in the prior analysis
related to the treatment of certain credit estimates and the cash
flow modeling approach. In previous modeling of the transaction,
Moody's had applied a one-notch haircut to the credit estimates
assigned to certain loans, rather than a two-notch haircut as
called for under Moody's cross sector methodology "Updated
Approach to the Usage of Credit Estimates in Rated Transactions"
published in October 2009. In addition, the previous modeling
approach did not include a cash flow analysis based on the
priority of payments specified in the transaction documentation.
These errors have been corrected and they had little or no impact
on the ratings. The primary driver of the downgrade of the BNTECB
07 Senior Certificate ratings is the deterioration in the pool's
credit quality.

The BNTECB 07 Senior Certificates have a minimum credit
enhancement of 6% in the form of subordination and
overcollateralization, as specified in the transaction
documentation. As of May 2018, the BNTECB 07 Senior Certificate's
actual credit enhancement was 6.2%. The BNTECB 07-2 Subordinate
Certificates benefit from a minimum credit enhancement of 4.0% in
the form of overcollateralization, as specified in the transaction
documentation. The transaction has maintained an
overcollateralization of 4.2% over the past year.

Moody's ratings also reflect the role of Banorte as collateral
manager, as well as the availability of a fully funded cash
reserve whose holdings are equivalent to one coupon payment. These
factors mitigate the liquidity risks associated with this
transaction's dual waterfall structure. As of May 2018, the
interest coverage ratio over the previous 12 months averaged
1.24x. Moody's notes that the transaction has demonstrated a
consistently strong payment history since closing, with no
reported delinquencies since the deal closed in 2007. According to
the collateral manager report as of May 2018, all of the loans are
current.

The loan portfolio, comprised of 22 loans to eight obligors, is
relatively concentrated. The largest obligor concentration is
20.3% and the lowest is 0.4% of the total pool balance. The three
largest loans account for 55.8% while the top five loans account
for 73.3% of the total pool balance. As of May 2018, the pool's
weighted average remaining life is 11.26 years and the weighted
average interest rate borne by the loans is 8.6%.

The BNTECB 07 Senior Certificates and the BNTECB 07-2 Subordinate
Certificates pay interest monthly and have a legal final maturity
date on May 15, 2037. However, if the total target credit
enhancement is not met by the coupon date, the certificates will
receive principal payments until the minimum credit enhancement
has been met. As of May 2018, both certificates, which have been
paying pro rata since issuance, had been paid down by 51.3% of the
original amounts.

Moody's based the ratings of the transaction's tranches on their
expected loss. The expected loss was estimated using a cash flow
model that consists of two primary components: (a) a mechanism for
associating asset default scenarios with the likelihood of each
scenario (a default distribution) and (b) a cash flow component
that relates each asset default scenario to the cash flows that
the rated tranche is scheduled to receive in that scenario. After
applying the default distribution to the cash flow model, and
after considering the target overcollateralization level, a 50%
recovery rate and the liability structure, Moody's calculated the
expected loss for each rated tranche. Moody's took into account
the credit quality of the securitized assets and the expected
average life of each loan.

The principal methodology used in these ratings was "Moody's
Global Approach to Rating Collateralized Loan Obligations"
published in August 2017.

Moody's considered the servicer's practices and considers them
adequate.

The period of time covered in the financial information used to
determine Banorte - BNTECB 07 & BNTECB 07-2 ratings is between
February 1, 2008 and May 31, 2018 (source: the financial
information came from parties related to the ratings).

Factors that would lead to an upgrade or downgrade of the ratings:

Factors that would lead to an upgrade of the rating:

  - In case of prepayment of a loan, use of proceeds from
prepayment for early amortization of certificates and a material
and accompanying increase in credit enhancement.

  - A significant improvement in the credit quality of the largest
obligors of the pool

Factors that would lead to a downgrade of the rating:

  - A deterioration in the credit quality of the loans comprising
the pool of loans backing the certificates

  - A decline in total collections

  - A deterioration in the interest coverage ratio or
overcollateralization metrics


CEMEX SAB: Colombian Unit Sanctioned for Violating Rules
--------------------------------------------------------
RTT News reports that Colombia's Council of State confirmed the
sanction imposed by the Superintendence of Industry and Commerce
(SIC) on Cemex Colombia for violation free competition rules
between May and December 2005.

The company was fined in COP923 million (US$ 316.5 thousand),
according to RTT News.  The amount should be adjusted at the time
of payment, the report notes.

The resolution of the SIC was at the time the object of appealing,
resolved unfavorably for Cemex Colombia, the report relays.

As reported in the Troubled Company Reporter-Latin America on
March 16, 2018, Fitch Ratings has affirmed CEMEX, S.A.B. de C.V.'s
(CEMEX) Long- Term Issuer Default Rating (IDR) at 'BB-'. Fitch has
also affirmed the company's National Scale Long-Term Rating at
'A(mex)' and affirmed the company's National Scale Short-Term
rating at 'F1(mex)'. The Rating Outlook remains Positive.


=================
N I C A R A G U A
=================


NICARAGUA: Demand Disarmament of Militias Loyal to President
------------------------------------------------------------
EFE News reports that hundreds of protesters rolled through the
streets of this capital in a caravan of cars, motorcycles, vans,
and pick-up trucks to demand the disarmament of paramilitary
groups loyal to the Nicaraguan government.

As demonstrators made their way through the city's poorest
neighborhoods, drivers honked their horns and chanted slogans,
while hundreds of residents of all ages stood outside their homes
waving Nicaraguan flags and banging on pots and pans in support,
according to EFE News.

Al Jazeera relates that more than 200 people have died in
Nicaragua since unrest began two months ago. Protesters have taken
to the streets demanding President Daniel Ortega stand down.
Authorities have been accused of using "lethal force" to crack
down on the protests.

Al Jazeera recounts that demonstrations began on April 16, led by
university students in Managua after the government failed to
handle forest fires in one of the most protected areas of the
Indio Maiz Biological Reserve.  Two days later, the government
introduced plans to cut pensions and social security, including
decreasing pension payments by five percent and increasing worker
social contributions by 0.75 percent. The change also increased
employer contributions by 3.5 percent.

As reported in the Troubled Company Reporter-Latin America on
June 29, 2018, Fitch Ratings has downgraded Nicaragua's Long-Term
Foreign-Currency Issuer Default Rating (IDR) to 'B' from 'B+'. The
Outlook is Negative.


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


AQUAMAR POOL: Taps Carmen Santos as Accountant
----------------------------------------------
Aquamar Pool Supplies Inc. seeks approval from the U.S. Bankruptcy
Court for the District of Puerto Rico to hire an accountant.

The Debtor proposes to employ Carmen Santos to provide accounting
services and pay her an hourly fee of $125.  A retainer fee in the
amount of $125 has been paid by the Debtor.

Ms. Santos disclosed in a court filing that she is a
"disinterested person" as defined in Section 101(14) of the
Bankruptcy Code.

Ms. Santos maintains an office at:

     Carmen Santos
     Urb. Loma Linda, Calle A 6
     Corozal, PR 00783
     Phone: (939) 717-4932
     Fax: (939) 325-4713

                   About Aquamar Pool Supplies

Aquamar Pool Supplies Inc. sought protection under Chapter 11 of
the Bankruptcy Code (Bankr. D.P.R. Case No. 18-01753) on March 30,
2018.  At the time of the filing, the Debtor estimated assets of
less than $50,000 and liabilities of less than $500,000.  Judge
Enrique S. Lamoutte Inclan presides over the case.


SPANISH BROADCASTING: Incurs $3.37 Million Net Loss in 1st Quarter
------------------------------------------------------------------
Spanish Broadcasting System, Inc. has filed with the Securities
and Exchange Commission its Quarterly Report on Form 10-Q
reporting a net loss of $3.37 million on $33.91 million of net
revenue for the three months ended March 31, 2018, compared to a
net loss of $10.84 million on $31.35 million of net revenue for
the three months ended March 31, 2017.

The Company's radio segment net revenues increased by $1.0 million
or 4%, due to increases in local, network and special events
revenue, which were partially offset by decreases in national and
barter sales.  The Company's local sales increased in its Puerto
Rico and Los Angeles markets, while its national sales decreased
in its New York and San Francisco markets.  The Company's special
events revenue increased primarily in its Puerto Rico and Los
Angeles markets mainly due to an additional event and improved
performance.  The Company's television segment net revenues
increased by $1.5 million or 49%, due to the increases in special
events revenue from the performance of a new event.

Consolidated Adjusted OIBDA, totaled $9.3 million compared to $5.9
million for the same prior year period, representing an increase
of $3.5 million or 59%.  The Company's radio segment Adjusted
OIBDA increased $2.7 million or 31%, primarily due to a decrease
in operating expenses of $1.7 million and an increase in net
revenues of $1.0 million.  Radio station operating expenses
decreased mainly due to decreases in digital development and
content production costs related to the LaMusica application,
special events, barter, bad debt expenses and the impact of a
legal settlement offset by increases in professional fees,
advertising and commissions expenses.  The Company's television
segment Adjusted OIBDA improved $1.3 million or 202%, due to the
increase in net revenues of $1.5 million, partially offset by an
increase in operating expenses of $0.2 million.  Television
station operating expenses increased primarily due to increases in
special event related expenses partially offset by decreases in
originally produced programming costs and increases in related
production tax credits.  The Company's corporate expenses,
excluding non-cash stock-based compensation, increased $0.6
million or 24%, mostly due to increases in legal fees,
compensation and benefits, and travel related expenses.

Operating income totaled approximately $7.6 million compared to
$3.8 million for the same prior year period, representing an
increase of $3.7 million or 97%.  This increase in operating
income was primarily due to the increases in net revenues of $2.6
million and the decreases in operating expenses and
recapitalization costs of $1.1 million and $0.1 million,
respectively.  These recapitalization costs primarily include the
incurrence of professional fees related to the Company's continued
recapitalization and restructuring efforts.

As of March 31, 2018, Spanish Broadcasting had $435.59 million in
total assets, $534.85 million in total liabilities and a total
stockholders' deficit of $99.26 million.

"As previously announced, this is the best first quarter operating
performance in Company history.  Revenues increased and costs
declined across all of our major business units resulting, once
again, in operating margins that are among the best in the
industry.

"We remain focused on driving revenue and controlling costs while
maximizing the positioning and penetration of our unique portfolio
of assets in serving the needs of the U.S. Hispanic consumer.

"We will be pre-announcing second quarter estimates, evidencing
continued positive momentum, within the next few weeks," commented
Raul Alarcon, Chairman and CEO.

A full-text copy of the Form 10-Q is available for free at:

                    https://is.gd/cwoUbm

                   About Spanish Broadcasting

Based in Miami, Florida, Spanish Broadcasting System, Inc.
(OTCMKTS:SBSAA) -- http://www.spanishbroadcasting.com/-- owns and
operates 17 radio stations located in the top U.S. Hispanic
markets of New York, Los Angeles, Miami, Chicago, San Francisco
and Puerto Rico, airing the Spanish Tropical, Regional Mexican,
Spanish Adult Contemporary, Top 40 and Latin Rhythmic format
genres.  SBS also operates AIRE Radio Networks, a national radio
platform which creates, distributes and markets leading Spanish-
language radio programming to over 250 affiliated stations
reaching 94% of the U.S. Hispanic audience.  SBS also owns MegaTV,
a television operation with over-the-air, cable and satellite
distribution and affiliates throughout the U.S. and Puerto Rico.
SBS also produces live concerts and events and owns multiple
bilingual websites, including www.LaMusica.com, an online
destination and mobile app providing content related to Latin
music, entertainment, news and culture.

The report from the Company's independent accounting firm Crowe
Horwath LLP, the Company's auditor since 2013, on the consolidated
financial statements for the year ended Dec. 31, 2017, includes an
explanatory paragraph stating that the 12.5% Senior Secured Notes
had a maturity date of April 15, 2017.  Cash from operations or
the sale of assets was not sufficient to repay the notes when they
became due.  In addition, for the year ended Dec. 31, 2017, the
Company had a working capital deficiency and negative cash flows
from operations.  These factors raise substantial doubt about its
ability to continue as a going concern.

Spanish Broadcasting reported net income of $19.62 million for the
year ended Dec. 31, 2017, compared to a net loss of $16.34 million
for the year ended Dec. 31, 2016.  As of Dec. 31, 2018, Spanish
Broadcasting had $435.9 million in total assets, $531.8 million in
total liabilities and a total stockholders' deficit of $95.91
million.

                          *     *     *

In May 2017, S&P Global Ratings withdrew its 'D' corporate credit
rating and issue-level ratings on Spanish Broadcasting System.
"We withdrew the ratings because we were unlikely to raise them
from 'D', based on SBS' ongoing plans to restructure its debt,"
said S&P Global Ratings' credit analyst Scott Zari.  S&P had
downgraded SBS to 'D' on April 21, 2017, following the company's
announcement that it didn't repay its $275 million 12.5% senior
secured notes that were due April 15, 2017, as reported by the TCR
on May 25, 2017.

In April 2017, Moody's Investors Service downgraded SBS's
corporate family rating to 'Ca' from 'Caa2'.  SBS's 'Ca' corporate
family rating reflects an elevated expected loss rate following
the default under the company's 12.5% senior secured notes due
April 2017, said Moody's.


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


VENEZUELA: Will Struggle to Recover Lost Oil Production
--------------------------------------------------------
Irina Slav at Oilprice.com reports that Venezuela will be hard put
to recover by end-2018 the crude oil production that it lost in
the last couple of years, the country's Oil Minister said during
OPEC's meeting in Vienna.

Reuters quoted the official as saying, "We hope that by year-end,
we will have recovered the lost production, we have the capacity
to do so, we've said so.  This is a goal for 2018 that is very
challenging for PDVSA . . .  but it's the goal we've set
ourselves," according to Oilprice.com.

In May, President Nicolas Maduro said Venezuela will try to
increase oil production by 1 million bpd by the end of the year
and will rely on assistance from Russia, China, and OPEC for that,
the report notes.

To date, Oil Minister Manuel Quevedo said, Venezuela is pumping
1.5 million bpd, which is a lot less than the 2.37 million bpd it
was producing just two years ago, before the years of
mismanagement and lack of cash for maintenance brought about by
the U.S. sanctions really started to bite in, the report relays.

According to some observers, Venezuela's oil production could
slump to about 1 million barrels daily this year, which would be
the lowest ever in its history, the report says.

It was precisely because of this production slump that OPEC
managed to exceed its overall compliance with the production cuts
agreed at the end of 2016, whose future the cartel is discussed
today, the report relays.

The joint monitoring committee has recommended a production
increase of 1 million bpd, to be distributed proportionately among
members and non-OPEC signatories to the deal, but Saudi Arabia's
Oil Minister Khalid al-Falih said the actual increase would be
lower, at around 600,000 bpd, because not all members had the
spare capacity to tap, the report notes.  The actual outcome of
the meeting has OPEC increased production levels of the cartel
back to the original levels set under the November 2016 quota, the
report says.

However, according to Mr. Quevedo, "We have a recovery plan with
the refineries to use the capacity that we have . . .  we have a
lot of spare capacity that we will use as (crude) output
increases," notes the report.

As reported in the Troubled Company Reporter-Latin America on
June 1, 2018, S&P Global Ratings, on May 29, 2018, removed its
long- and short-term local currency sovereign credit ratings on
Venezuela from CreditWatch with negative implications and affirmed
them at 'CCC- /C'. The outlook on the long-term local currency
rating is negative. At the same time, S&P affirmed its 'SD/D'
long- and short-term foreign currency sovereign credit ratings on
Venezuela. S&P's transfer and convertibility assessment remains at
'CC'.


                            ***********


Monday's edition of the TCR-LA delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-LA editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Monday
Bond Pricing table is compiled on the Friday prior to publication.
Prices reported are not intended to reflect actual trades.  Prices
for actual trades are probably different.  Our objective is to
share information, not make markets in publicly traded securities.
Nothing in the TCR-LA constitutes an offer or solicitation to buy
or sell any security of any kind.  It is likely that some entity
affiliated with a TCR-LA editor holds some position in the
issuers' public debt and equity securities about which we report.

Tuesday's edition of the TCR-LA features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical cost
net of depreciation may understate the true value of a firm's
assets.  A company may establish reserves on its balance sheet for
liabilities that may never materialize.  The prices at which
equity securities trade in public market are determined by more
than a balance sheet solvency test.

Submissions about insolvency-related conferences are encouraged.
Send announcements to conferences@bankrupt.com


                            ***********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Latin America is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C.,
USA, Marites O. Claro, Joy A. Agravante, Rousel Elaine T.
Fernandez, Julie Anne L. Toledo, Ivy B. Magdadaro, and Peter A.
Chapman, Editors.

Copyright 2018.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding, electronic
re-mailing and photocopying) is strictly prohibited without prior
written permission of the publishers.

Information contained herein is obtained from sources believed to
be reliable, but is not guaranteed.

The TCR Latin America subscription rate is US$775 per half-year,
delivered via e-mail.  Additional e-mail subscriptions for members
of the same firm for the term of the initial subscription or
balance thereof are US$25 each.  For subscription information,
contact Peter A. Chapman at 215-945-7000.
.


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