TCRLA_Public/180822.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

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

           Wednesday, August 22, 2018, Vol. 19, No. 166


                            Headlines



B R A Z I L

GENERAL SHOPPING: Posts Final Results of Offer for 10.0% Notes
GENERAL SHOPPING: Fitch Hikes LT IDRs to 'CCC+', Outlook Positive
MARFRIG GLOBAL: S&P Raises ICR to 'BB-', Outlook Stable


C O S T A   R I C A

BANCO BAC: Fitch Affirms 'BB+' Long-Term FC IDR, Outlook Negative
BANCO DAVIVIENDA: Fitch Affirms 'BB+' LT FC IDR, Outlook Negative


E C U A D O R

ECUADOR: Fitch Cuts LT IDR to 'B-'; Alters Outlook to Stable


E L  S A L V A D O R

EL SALVADOR: Establishes Diplomatic Ties With China


J A M A I C A

JAMAICA: "Not to Worry" on Depreciation of Local Currency


M E X I C O

BANCO MONEX: S&P Affirms BB+/B Global Scale Rating, Outlook Stable
GRUPO KALTEX: Fitch Cuts LT Issuer Default Ratings to 'CCC'


P A R A G U A Y

PARAGUAY: Tosses Out Ex-President's Environment-Damaging Decree


P U E R T O    R I C O

AUGUST SAGE: Plan Outline Hearing Set for Oct. 2
CARIBBEAN WINDS: Oct. 2 Disclosure Statement Hearing
GREEN HORIZON: Hearing on Disclosure Statement Set for Oct. 2
J & M SALES INC: Taps Mr. Kroll of SierraConstellation as CRO
J & M SALES INC: Seeks to Hire Katten Muchin as Co-Counsel

J & M SALES INC: Hires Prime Clerk as Administrative Agent
J & M SALES INC: Seeks to Hire Pachulski Stang as Co-Counsel
JDHG LLC: Approval Hearing on Plan Outline Set for Oct. 2
PUERTO RICO: Peaje Investments Does Not Hold Statutory Lien


V E N E Z U E L A

VENEZUELA: Shopkeepers Alarmed by Maduro's Latest Economic Moves


X X X X X X X X X

LATAM: Lawmakers Urged to Confront Public Health Issues


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B R A Z I L
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GENERAL SHOPPING: Posts Final Results of Offer for 10.0% Notes
--------------------------------------------------------------
General Shopping e Outlets do Brasil S.A., formerly known as
General Shopping Brasil S.A., hereby disclose the final results of
the previously disclosed cash tender offer (the "Offer") by GS
Finance II Limited, its wholly-owned subsidiary incorporated under
the laws of the Cayman Islands, to purchase up to U.S.$90.0
million of General Shopping Finance Limited's 10.0% Perpetual
Notes.

The tender for the Notes expired on 11:59 p.m., New York City
time, on August 7, 2018 (the "Expiration Date"). On the Expiration
Date, GS Finance II received valid tenders from holders of Notes
in an aggregate principal amount of U.S.$48,297,000. Participation
in the Offer did not exceed the Maximum Acceptance Amount and,
therefore, the Offer will not be subject to proration procedures
described in the Offer to Purchase Statement, dated July 11, 2018
(as amended by the press release dated July 25, 2018, the "Offer
to Purchase").

In addition, General Shopping hereby announces that the conditions
to the Offer, including the financing condition described in the
Offer to Purchase, have been satisfied or waived. Payment for the
Notes accepted for purchase that were validly tendered on or prior
to the Expiration Date is expected to be made on August 9, 2018 or
as soon as practicable thereafter (the "Settlement Date"). It is
expected that GS Finance II will continue to hold the Notes
validly tendered and accepted for purchase at the conclusion of
the Offer.

The aggregate amount of Notes validly tendered on or prior to the
Expiration Date is set forth on the table below:


                     Principal Amount    Principal
                     Outstanding Prior   Amount
  Title of Security  to the Offer        Tendered    Consideration
  -----------------  ----------------   ---------    -------------
10% Perpetual Notes     US$164.2MM       US$48.3MM      US$1,000


(1) Corresponds to amount to be paid for each U.S.$1,000 principal
amount of the Notes validly tendered and accepted for purchase. In
addition, accrued interest from the last interest payment date on
the Notes preceding, but not including, the Settlement Date will
be paid.

(2) Reflects the principal amount outstanding as of the
commencement of the Offer.  GS Finance II will continue to hold
the Notes validly tendered and accepted for purchase at the
conclusion of the Offer.


GENERAL SHOPPING: Fitch Hikes LT IDRs to 'CCC+', Outlook Positive
-----------------------------------------------------------------
Fitch Ratings has upgraded General Shopping Brasil SA's (GSB)
Long-Term Foreign and Local-Currency Issuer Default Ratings (IDRs)
to 'CCC+' from 'CC' and National Scale rating to 'CCC(bra)' from
'CC(bra)'. The Rating Outlook is Positive. The rating actions
reflect Fitch's reassessment of GSB's capital structure and
liquidity position following the recent asset sale and purchase of
a portion of its 10% perpetual notes. The Positive Rating Outlook
reflects expectations that GSB will further reduce debt levels
during the following months.

KEY RATING DRIVERS

Assets Sales Incorporated: The ratings incorporate the impact upon
the company's liquidity position and cash generation capacity
following the sale of 70% of "Internacional Shopping Guarulhos"
venture for a total price of BRL 937 million during the second
quarter. As a result of this sale, the company's cash position was
BRL 1.1 billion as of June 30, 2018. GSB is expected to use these
proceeds primarily to reduce debt levels. The ratings also factor
in the company's lower cash flow generation post assets sales. On
a pro forma basis, the company's annual cash flow generation,
measured as EBITDA, is expected to be around BRL124 million
(BRL178 million in 2017). GSB's total GLA has been reduced from an
average owned gross leasable area (GLA) of 245,000 square meters
(m2) as of Dec. 31, 2017 to 183,000 m2 after the transaction.

Cash Tender Offer, USD 48 Million Reduction in Perpetuals: GSB's
total debt was BRL 2.1 billion as of June 30, 2018. It consists of
BRL 583 million in real estate credit bills, BRL 193 million in
secured loans and financing, BRL 36 million in secured notes, BRL
642 million in perpetual notes and BRL 630 million in subordinated
perpetual notes. On August 08, the company concluded a cash tender
offer resulting in the purchase of USD 48 million (BRL 182
million) of its perpetual notes. After this transaction the
company's total debt pro forma is estimated at BRL 1.9 billion.

Liquidity Improving: GSB's liquidity is adequate due to cash
received from recent assets sale and its manageable debt
amortization schedule with no material principal payment
maturities and expected levels of interest coverage ratio
(measured as total EBITDA-to-gross interests) trending to levels
around 1.5x during 2018-2019. Fitch views the company's
unencumbered pool of assets pro forma as low relative to its
unsecured debt. The company's total assets value is estimated at
BRL2.2 billion as of June 30, 2018. Encumbered and Unencumbered
assets value were estimated at BRL1.4 billion and BRL781 million,
respectively, as of June 30, 2018. The company's pro forma total
debt is BRL 1.9 billion, resulting in a consolidated loan-to-value
(LTV) of 86%. The company's unencumbered asset to unsecured debt
ratio is estimated at 0.7x as of June 30, 2018.

Deleveraging Underway: Fitch expects GSB to use its liquidity to
reduce gross debt levels. The ratings factor in expectations of
continued improvement in the company's capital structure following
recent developments, assets divesture, increasing liquidity and
purchase of a portion of GSB's perpetual notes. On a pro forma
basis, Fitch estimates the company's total debt, cash and
marketable securities and annual cash flow generation at levels of
BRL 1.9 billion, BRL 876 million and BRL 124 million,
respectively, as of June 30, 2018. When considering the 50% credit
on the subordinated perpetual notes, Fitch expects GSB's net
leverage to trend to levels around 6x by the end of 2018.

Operational Performance Stable: Despite Brazil's still challenging
operating environment, GSB's operational performance has remained
relatively stable during 2017 and the first half of 2018.
Incorporating lower total GLA post assets sales, Fitch expects the
company's 2018-2019 average annual net revenues to be around BRL
188 million and EBITDA margins of around 67%. The company's
average consolidated net revenues per m2 (month) is expected to
remain flat at around BRL 103 during 2018-2019. The company's
property portfolio supports an adequate profile in terms of
occupancy and lease expiration schedule. As of June 30, 2018, the
portfolio's occupancy rate was approximately 94%. GSB's weighted
average remaining lease term is between four to six years, with
approximately 25% of the company's annualized base rent expiring
during the 2018-2019 period.

Equity Treatment for Subordinated Perpetual Notes Given Equity-
Like Features: GSB's subordinated perpetual notes qualify for 50%
equity credit as they meet Fitch's criteria with regard to deep
subordination, with an effective maturity of at least five years,
full discretion to defer coupons for at least five years and
limited events of default. These are key equity-like
characteristics. Equity credit is limited to 50% given the
hybrid's cumulative interest coupon, a feature considered more
debt-like in nature. Since the second half of 2015, the company
has exercised its right to defer the payment of interest under its
USD 150 million 10% perpetual subordinated notes. The interest
payment deferral does not constitute an event of default under the
indenture. Fitch assumes the company will continue deferring
interest payments on the subordinated perpetual notes during the
foreseeable future.

Recovery Prospects: Fitch's expectation in the recovery prospects
on GSB's notes reflect the view that a going concern scenario is
more likely to occur - versus a liquidation scenario - if GSB's
financial distress results in a debt restructuring process. The
recovery analysis assumes a going concern enterprise value of BRL
1.1 billion based on a recurring annual EBITDA level of around BRL
112 million (a 10% discount from the company's 2018 pro forma
EBITDA after recent assets sale) and a multiple of 10x. The
recovery analysis incorporates the recent USD 48 million reduction
in GSB's s perpetual notes. After deducting 10% for administrative
claims, the remaining BRL 1.1 billion of enterprise value leads to
full recovery for GSB's secured debt. GSB's 2026 secured notes
were assessed as benefiting from higher recovery prospects but
reduced to 'RR4' because of Brazil's specific recovery rating
caps. The Recovery Rating (RR) of 'RR4' for the perpetual notes
also reflects average recovery prospects in the 31% to 35% range
in an event of default. The 'RR6' for the USD 150 million
subordinated perpetual notes reflects poor recovery prospects (in
the 0% to 10% range) in the event of default.

DERIVATION SUMMARY

GSB's 'CCC+' rating reflects the company's track record of
maintaining high financial leverage, negative FCF and weak
liquidity. The Positive rating Outlook factors in expectations of
material improvement in the company's capital structure and
liquidity as a result of GSB's financial strategy execution, which
includes the combination of assets sales and debt reduction during
2018.

GSB's ratings factor in a positive view on the Brazilian mall
industry's fundamentals in the medium to long term, which include
Brazil's positive demographic changes and a growing middle class.
The company's substantial FX risk is incorporated in its ratings.
GSB's exposure to foreign exchange risk is material with
approximately 52% of the company's total debt being USD
denominated.

Fitch views GSB's capital structure as weaker than regional peers
such as BR Malls Participacoes S.A. (BB/Stable) and InRetail Real
Estate S.A. (BB+/Stable). GSB's 'CCC+' rating reflects weakness in
several rating considerations. In terms of net leverage, measured
as the net debt/EBITDA, BR Malls and InRetail Real Estate had
ratios of 2.7x and 3.0x, respectively, during 2017. In terms of
liquidity and capacity to consistently cover interest expenses
paid with recurrent cash flow generation, BR Malls and InRetail
Real Estate had coverage ratios of 2.5x and 2.8x, respectively,
during the period.

KEY ASSUMPTIONS

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

  -- Proceeds from assets sales are primarily used to reduce debt
during 2018

  -- Average annual net revenue around BRL 187 million during
2018-2019;

  -- The company continues deferring interest payments on the
subordinated perpetual notes during 2018-2020;

  -- Cash interest coverage trend to levels around 1.5x during
2018-2019;

  -- GSB's free cash flow margin - after capex - is negative in
the low single during 2018-2019.

RATING SENSITIVITIES

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

  -- Material improvement in the company's capital structure
through the use of proceeds from assets sales during 2018;

  -- Net leverage consistently trending to levels in the 7x to 6x
range toward 2019;

  -- Interest coverage ratio consistently above 1.5x toward 2019.

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

  -- No material reduction in debt levels during 2H2018 ;

  -- Deterioration of GSB's liquidity position;

  -- Consistent negative FCF generation affecting its capital
structure during 2018 to 2019.

LIQUIDITY

Adequate Liquidity: The company's liquidity is viewed as an
improving and adequate considering received proceeds from recent
assets sale, manageable debt schedule with no material principal
payment maturities and expected levels of interest coverage ratio
(measured as total EBITDA-to-gross interests) trending to levels
around 1.5x during 2018-2019. Fitch expects the company to use its
liquidity to reduce debt levels resulting in a material
improvement of its capital structure.

Fitch views the company's unencumbered pool of assets pro forma as
low relative to its unsecured debt. The company's total assets
value is estimated at BRL2.2 billion as of June 30, 2018.
Encumbered and Unencumbered assets value were estimated at BRL1.4
billion and BRL781 million, respectively, as of June 30, 2018. The
company's pro forma total debt is BRL 1.9 billion, resulting in a
consolidated loan-to-value (LTV) of 86%. The company's
unencumbered asset to unsecured debt ratio is estimated at 0.7x as
of June 30, 2018.

FULL LIST OF RATING ACTIONS

Fitch has taken the following rating actions:

General Shopping Brasil S.A. (GSB):

  -- Long-Term Foreign Currency IDR upgraded to 'CCC+' from 'CC';

  -- Long-Term Local Currency IDR upgraded to 'CCC+' from 'CC';

  -- National Scale rating upgraded to 'CCC(bra)' from 'CC (bra)'.

General Shopping Finance Limited (GSF):

  -- USD250 million perpetual notes upgraded to 'CCC+'/'RR4' from
'CC'/'RR4' .

General Shopping Investment Limited (GSI):

  -- USD150 million subordinated perpetual notes upgraded to 'CCC-
'/'RR6' from 'C'/'RR5'.

  -- USD8.9 million of senior secured notes due 2026 upgraded to
'CCC+'/'RR4' from 'CCC-'/'RR3'.

The Rating Outlook is Positive.


MARFRIG GLOBAL: S&P Raises ICR to 'BB-', Outlook Stable
-------------------------------------------------------
S&P Global Ratings raised its global scale issuer credit rating on
Marfrig Global Foods S.A. (Marfrig) to 'BB-' from 'B+' and its
national scale issuer credit and issue-level ratings to 'brAA+'
from 'brAA'. S&P removed the credit ratings from CreditWatch
positive and the issue ratings from CreditWatch developing, where
S&P placed them on April 9, 2018. The outlook on both scales is
now stable.

S&P also raised its recovery rating to '3' from '4' on Marfrig's
senior unsecured debt, reflecting its expectation of meaningful
recovery of 50%-70% (rounded 50%).

The upgrade mirrors the improvement in the company's leverage
profile following the completion of the acquisition of National
Beef (NB) and the sale of KeyStone. These factors improved
Marfrig's pro forma debt to EBITDA to 4.0x for December 2018 from
5.6x in December 2017. This stems from NB's lower leverage and
sizable cash proceeds from the sale of KeyStone ($2.2 billion or
R$8.2 billion). The net cash proceeds, after deducting KeyStone's
debt and minority interest, is of $1.4 billion (around R$5.2
billion) that S&P expects Marfrig to use to pre-pay the bridge
loan of $900 million contracted to fund the acquisition and any
remainder to prepay more expensive debts. These should lower
interest burden on Marfrig by about R$150-200 million per year and
support stronger cash flow generation.

The acquisition transforms Marfrig into the world's second-largest
beef producer, increasing its share in competitive beef-producing
countries such as Brazil, Uruguay and the U.S., allowing the
company to access the globe's largest consumer markets. The
purchase widens Marfrig's geographic diversification, and provides
potential commercial synergies and for operating improvements due
to the focus on a single business line-beef production. However,
in our view, the acquisition also heightened the potential
volatility of Marfrig's operations, because the sale of KeyStone
deprives the company of the stability stemming from serving the
food service segment, the ability to pass through cost volatility
to prices, and protein diversity.

NB is the fourth-largest beef processor in the U.S., with leading
share of the country's beef exports and access to important and
profitable markets, such as Japan and South Korea. The company,
like the overall sector in the U.S., has been benefiting from
healthy cutout margins since the end of 2015 that are likely to
continue in 2019, thanks to the replenishment of the cattle herd
in the U.S. As the tail winds for the industry dissipate, S&P
expects NB's margins to drop to mid-single digits as of 2020 from
the current high-single digits, but with solid operating and
procurement efficiency. Potential execution risks are mitigated by
the maintenance of all senior management at NB for at least for
five years, and because its operations are stable and don't
require any significant capex or shift from current strategy.

"We expect an improvement in Marfrig's consolidated cash flow
generation because of the strong performance of NB, which is
benefiting from the favorable cattle cycle in the U.S., boosting
cash flow generation during the next 18 months. We view a
potential headwind for Marfrig coming from still volatile
operations in South America, with recurrent considerable cash burn
in working capital that could undermine its deleveraging in the
future.

"We recognize the impact of the significant minority ownership
(49%) at NB by assuming a 100% dividend payout from the entity in
our forecast, despite the minimum requirement of 54% according to
shareholders' agreement. We also assume a higher impact on the
DCF-to-debt ratio in our assessment of Marfrig's consolidated
financial risk profile. If NB were not to pay 100% of dividends,
we would apply a haircut to any net cash trapped at its level to
reflect only the cash available for Marfrig to repay its own debt
and its net leverage ratios.

"Also, as per our methodology, we adjust the Marfrig's debt by
adding its tax refinancing programs, payment commitments from past
acquisitions, receivables securitization, and the put option that
NB's minority shareholders have against Marfrig. Those adjustments
add about R$5 billion to our debt estimates for the company."


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C O S T A   R I C A
===================


BANCO BAC: Fitch Affirms 'BB+' Long-Term FC IDR, Outlook Negative
-----------------------------------------------------------------
Fitch Ratings has affirmed Banco BAC San Jose, S.A.'s (BAC San
Jose) Long-Term Foreign Currency Issuer Default Rating (IDR) at
'BB+', Short-Term Foreign Currency IDR at 'B', Long-Term Local
Currency IDR at 'BBB-', Short-Term Local Currency IDR at 'F3', and
Viability Rating (VR) at 'bb'. The Rating Outlook on the Long-Term
IDRs is Negative. Fitch has also affirmed BAC San Jose's Support
Rating (SR) at '3'.

KEY RATING DRIVERS

IDRS, NATIONAL RATINGS AND SENIOR DEBT

BAC San Jose's IDRS and National Ratings are driven by the
potential support the bank would receive from its owner, Banco de
Bogota (BBB/Stable), if required. Fitch considers BAC San Jose as
a core operation for the ultimate parent as it is the largest
subsidiary in Central America in terms of assets and revenue
contribution, providing core services and products in the banking
industry. IDRs reflect the transfer and convertibility risk as the
Foreign Currency IDR is capped by the Costa Rican country ceiling
while the Local Currency IDR maintains the usual maximum uplift of
two notches above the sovereign rating (BB/Negative).

BAC San Jose's Negative Outlook is also aligned with Costa Rica's
Sovereign Rating Outlook given its high level of influence over
the financial sector and the broader operating environment. The
latter indicates that the IDRs of BAC San Jose would be downgraded
in the event of a Costa Rican sovereign downgrade. Conversely, a
revision of the sovereign's IDR Outlook to Stable would likely
prompt a similar action on the bank's Outlook.

BAC San Jose's senior debt rating is equivalent to the bank's
national rating as the debt is senior unsecured.

VR

BAC San Jose's VR is highly influenced by the operating
environment as uncertain prospects for fiscal reforms, economic
slowdown and lower credit growth expectations represent a
constraint to the rating.

The VR also reflects its relatively solid company profile, its
consistent performance and risk appetite. The bank benefits from
resilient profitability, good asset quality, as well as improving
capitalization and a stable deposit base.

BAC San Jose is the largest private bank in Costa Rica with a
leading franchise in the credit card and acquiring business,
underpinned by its cross-selling strategy with commercial loans,
mortgages, consumer loans, payroll payments and treasury
management services.

As of March 2018, the bank's operating profit to RWAs ratio stood
close to 3.4%, sustained by cost to income ratio of nearly 33.0%
and controlled loan impairments charges (LICs) that represented
close to 46.0% of pre-impairment operating profits. The relevant
increase in the net intern margin (NIM) and a reduction in non-
interest revenues reflects a recent change of income recognition
with credit card receivables.

Despite some deterioration especially in the retail segment mainly
due to economic slowdown, asset quality remains good. As of March
2018, past due loans over 90 days reached 1.3% which represented a
YoY increase of 27.0%. Reserve coverage levels have remained
consistently high and above 200% (March 2018: 258%). Fitch expects
credit-risk management and underwriting standard adjustments to
sustain adequate asset quality metrics in 2018.

BAC San Jose's capital position strengthened as its Fitch Core
Capital (FCC) ratio increased to 14.3% as of March 2018. The
dividend pay-out ratio has been historically low, maintaining an
internal adequacy target above the regulatory minimum and
providing an adequate loss-absorption buffer.

As of March 2018, loans-to-deposits stood at 104.3% (142.0%
excluding term deposits traded as issuances), with customer
deposits representing the main source of funding (85.0% or 62.5%
excluding term deposits traded as issuances). Deposit funding is
complemented by diversified sources such as debt issuances, credit
lines with correspondent banks, multilateral banks, syndicated
loans and diversified payment rights (DPRs) in the international
markets. BAC San Jose's funding is primarily short-term, although
its deposit base has proven to be stable, somewhat mitigating
maturity mismatches.

SUPPORT RATING
The bank's Support Rating (SR) of '3' reflects Banco de Bogota's
moderate probability to provide support, if required. This SR is
mostly influenced by the current level of the country ceiling.

RATING SENSITIVITIES

IDRS, NATIONAL RATINGS, AND SENIOR DEBT

There is no upside potential given the sovereign's Negative
Outlook. BAC San Jose's IDRs could be downgraded if Costa Rica's
Sovereign Rating and Country Ceiling are downgraded. In addition,
the IDRs and National Ratings could change if Fitch's assessment
of Banco de Bogota's ability or willingness to support its
subsidiaries changes.

BAC San Jose's senior unsecured debt would mirror any potential
downgrade on the bank's National Scale Ratings.

VR

The bank's VR is also sensitive to changes in the sovereign rating
due to the entity's exposure to sovereign debt. The VR could be
pressured in a scenario of substantial deterioration of the bank's
asset quality or sustained reductions on its operating
profitability on risk weighted assets to below 1.3% and its
capitalization (FCC below 11.0%). There is limited upside
potential on the VR due to the rating is at the sovereign level.

SUPPORT RATING

BAC San Jose's SR would be affected if Fitch changes its
assessment of its parents' willingness and/or ability to provide
support.

Fitch has affirmed BAC San Jose's ratings as follows:

International Ratings

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

  -- Short-Term Foreign Currency IDR at 'B';

  -- Long-Term Local Currency IDR at 'BBB-'; Outlook Negative;

  -- Short-Term Local Currency IDR at 'F3';

  -- Support Rating at '3';

  -- Viability Rating at 'bb'.

National Ratings

  -- Long-Term National Rating at 'AAA(cri)'; Outlook Stable;

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

  -- Programa de Bonos BSJ-2011 Colones at 'AAA(cri)';

  -- Programa de Bonos BSJ-2011 Dolares at 'AAA(cri)';

  -- Programa de Bonos BSJ-2015 Colones at 'AAA(cri)';

  -- Programa de Bonos BSJ-2015 Dolares at 'AAA(cri)';

  -- Programa de Papel Comercial BSJ-2015 Colones at 'F1+(cri)';

  -- Programa de Papel Comercial BSJ-2015 Dolares at 'F1+(cri)'.


BANCO DAVIVIENDA: Fitch Affirms 'BB+' LT FC IDR, Outlook Negative
-----------------------------------------------------------------
Fitch Ratings has affirmed Banco Davivienda (Costa Rica), S.A.'s
(Davivienda CR) Long-Term Foreign Currency Issuer Default Rating
(IDR) at 'BB+', Short-Term Foreign Currency IDR at 'B', Long-Term
Local Currency IDR at 'BBB-', Short-Term Local Currency IDR at
'F3', and Viability Rating (VR) at 'bb-'. The Rating Outlooks on
the Long-Term IDRs are Negative. Fitch has also affirmed
Davivienda CR's Support Rating (SR) at '3'.

The Negative Outlook indicates that Davivienda CR's IDRs could be
downgraded in the event of a Costa Rican sovereign rating
downgrade. Conversely, a revision of the Outlook on the
sovereign's IDR to Stable would likely prompt a similar action on
the Outlook of the bank's IDRs.

KEY RATING DRIVERS

IDRS, NATIONAL RATINGS AND SENIOR DEBT

Davivienda CR's IDRs, National Ratings and senior debt are based
on the potential support the bank would receive from its
shareholder Banco Davivienda, S.A. (BBB/F3/Stable), if required.
Davivienda is Colombia's third-largest bank with a market share of
about 13% by assets within Colombia and a regional presence since
2012.

The Long-Term Foreign Currency IDR is constrained by Costa Rica's
Country Ceiling of 'BB+', which, according to Fitch's criteria,
captures transfer and convertibility risks. The Long-Term Local
Currency IDR is limited to two notches above Costa Rica's 'BB'
sovereign rating. This caps the subsidiary's IDRs to a lower
rating than would be possible based solely on Davivienda's ability
and propensity to provide support; however, in Fitch's view, the
parent's commitment to its subsidiary is sufficiently strong to
allow Davivienda CR to be rated above the sovereign rating.

Fitch considers that the propensity of support reflects the huge
reputational risk that Davivienda CR's default would constitute to
its parent, which would damage its franchise. Additionally, any
required support by Davivienda CR would be manageable relative to
its shareholder's ability to provide it, as the Costa Rican bank
represents 8% of the parent's consolidated assets. In Fitch's
view, this subsidiary has a relevant role for Davivienda as part
of its expansion and diversification strategy in Central America.

Davivienda CR's local senior debt rating is equivalent to the
bank's national rating as the debt is senior unsecured.

VR

Davivienda CR's VR is highly influenced by the operating
environment given that the lower economic dynamism, the
uncertainty in relation to fiscal reforms, as well as the lower
expectations of credit growth represent a limitation for the VR.
Additionally, the bank's VR considers its moderate franchise
within the Costa Rican banking system, its reasonable risk
appetite, good asset quality, modest profitability, moderate
capitalization levels and appropriate funding structure.

Davivienda CR is the sixth largest bank in terms of assets, with a
market share of 6.1%. It is a universal bank, which is well
diversified in terms of economic sector and provides different
banking products and services for the middle and high income
segments in the Costa Rican market.

The bank's asset quality indicators are consistent with the 'bb'
category. From 2014 to 2017, the bank's average non-performing
loans (NPL) ratio (+90 days overdue) 1.2% compared favorably to a
system average of 1.8%. However, Davivienda CR's loan
concentration as measured by the 20 largest debtors exceeded that
of its peers. The reserve coverage is appropriate reaching 186.5%
as of 1Q18 (average 2014-2017: 132.1%). Loan charge-offs reached
on average 1.3% of total loans from 2014 to 2017, which Fitch
considers reasonable considering the portfolio's target segments.
Fitch believes that delinquency metrics will remain in similar
levels, as a result of its tools, controls, models and
underwriting policies.

The entity shows a modest but stable profitability, with an
operating profit to risk weighted assets ratio that averaged 0.7%
from 2014 to 2017. Efficiency has improved in recent years, while
pressures on the bank's Net Interest Margin (NIM) subsided in
1Q18. Fitch expects these positive trends to continue in 2018.

With a Fitch Core Capital to Risk-Weighted Assets metric of 11.1%
as of 1Q18, Fitch views the bank's capitalization as tight.
Nevertheless, Fitch expects ordinary support from Davivienda CR's
parent to continue, maintaining regulatory capital ratios above
the minimum required.

In Fitch's view, Davivienda CR has appropriate market access and
relatively diversified funding. An important proportion of the
bank's funding still comes from client deposits (1Q18: 58.6%), but
it shows a downward trend. As a result, the loans to deposits
ratio increased to 136.5% as of 1Q18 (2014-2017: 122.2%). The
agency believes the bank's liquidity position is appropriate, with
liquid assets representing 28.1% of total assets and 53.9% of the
total deposits, and during this year the entity will continue to
strengthen it.

SUPPORT RATING

The bank's Support Rating is based on Fitch's view of Davivienda's
ability and propensity to provide support to Davivienda CR, if
required. Davivienda CR's support rating is also constrained by
Costa Rica's Country Ceiling. According to Fitch's criteria,
Davivienda CR's IDR of 'BB+' results in a support rating of '3'.

RATING SENSITIVITIES

IDRS, NATIONAL RATINGS AND SENIOR DEBT

Davivienda CR's IDRs could be downgraded if Costa Rica's sovereign
rating and Country Ceiling are downgraded. There is no upside
potential as the IDRs are already at the typical maximum uplift
for banks with external institutional support of two notches above
the sovereign. Currently, the Outlook on the sovereign rating is
Negative. In addition, the bank's IDRs and National Ratings could
change if Fitch's perception of the bank's shareholders' ability
or willingness to support its subsidiary is modified.

Davivienda CR's senior unsecured debt would mirror any potential
downgrade on the bank's National Scale Ratings.

VR

Davivienda CR's VR could be downgraded in a scenario of
significant and consistent economic deterioration that would lead
to changes in sovereign ratings. The VR could also be pressured by
a deterioration of the bank's profitability and asset quality
ratios that results in a sustained decline it its Fitch Core
Capital ratio below 9%. Conversely, the VR could be upgraded
following a sustained increase in profitability metrics (operating
profit to risk weighted assets ratio above 1.25%) that strengthens
the bank's equity levels. However, any upgrade potential is
constrained by the Costa Rican operating environment.

SUPPORT RATING

The SR is potentially sensitive to any change in assessment of the
propensity or ability of Davivienda to provide timely support to
its subsidiary. Any change in Fitch's appreciation on the
strategic importance of Davivienda CR to its owner may result in a
review of its Support Rating.

Fitch has affirmed the following ratings:

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

  -- Short-Term Foreign Currency IDR at 'B';

  -- Long-Term Local Currency IDR at 'BBB-'; Outlook Negative;

  -- Short-Term Local Currency IDR at 'F3';

  -- Support rating at '3';

  -- Viability Rating at 'bb-';

  -- National Long-Term Rating at 'AAA(cri)'; Outlook Stable;

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

  -- Senior Unsecured National Rating at 'AAA(cri)'.


=============
E C U A D O R
=============


ECUADOR: Fitch Cuts LT IDR to 'B-'; Alters Outlook to Stable
------------------------------------------------------------
Fitch Ratings has downgraded Ecuador's Long-Term Foreign-Currency
Issuer Default Rating (IDR) to 'B-' from 'B'. The Outlook has been
revised to Stable from Negative. Additionally, Fitch has assigned
the sovereign a 'B-' Long-Term Local-Currency IDR/Stable Outlook
and a 'B' Short-Term Local-Currency IDR.

KEY RATING DRIVERS

The downgrade of Ecuador's Long-Term Foreign-Currency IDR to 'B-'
reflects evidence of increased fiscal financing constraints amidst
a steady deterioration of Ecuador's key metrics, including rapidly
rising government debt and interest burden as well as weaker
economic growth performance relative to the 'B' median.

Ecuador's fiscal financing options are narrowing. In 2018, the
government's financing needs are estimated USD11.7 billion. The
government tapped the international financial markets in January
for USD3 billion, and it received approximately USD1.1 billion
from bilateral and multilateral sources (including the forward
sale of oil to China). On the domestic market, it tapped pockets
of liquidity from public-sector entities and other sources for a
further USD1.8 billion.

Fitch estimates that Ecuador needs a further USD5.8 billion to
close its financing gap this year. While Fitch believes that the
sovereign can close the gap through a combination of multilateral
and bilateral financing along with the rollover of domestic debt
and some accumulation of supplier arrears, the outlook for 2019
and 2020 is more uncertain. Fitch estimates financing needs of
USD8.5 billion in 2019 (not including short-term Cetes debt) with
some risk to the upside if some contingent liabilities materialize
as they have over the past two years. The domestic market is
shallow and offers limited additional financing.

Large fiscal deficits and increased reliance on expensive market
debt have led to rapidly rising debt and interest burdens.
Ecuador's government debt/GDP is estimated to rise to 51.3% in
2018, nearly double the level when Fitch upgraded Ecuador's rating
to 'B' in 2013. Furthermore, the interest burden has risen sharply
and the government's interest/ revenues are expected to approach
10% in 2020, nearly double the 2016 level.

External liquidity is weak and heavily reliant on the sovereign's
external borrowing. Ecuador's international reserve levels have
historically been low and volatile. While Ecuador is a fully
dollarized economy, and therefore technically international
reserves do not serve a balance of payments purpose, the central
bank of Ecuador is the country's and the government's payment
agent and as such needs a certain threshold of operational
reserves, which Fitch estimates at around USD2 billion. Fitch
forecasts that Ecuador's international reserves will approach
USD2.4 billion by the end of 2018 or just one month of current
external payments, little changed from year-end 2017.

Ecuador is expected to enter a recession in 2H18 due to the fiscal
retrenchment underway. Public-sector capital spending fell by
nearly 2% of GDP in 2017 and is expected to fall by 0.8% of GDP in
2018. Furthermore, public-sector employment adjustments (largely
through contract employment) are expected to begin to take effect
in 2H18. A sharp slowdown in domestic credit expansion is taking
hold as well, which will undermine domestic demand. Fitch expects
just 1.1% overall GDP growth in 2018, followed by 0.8% growth in
2019.

The Stable Outlook reflects its expectation that the public sector
fiscal deficit will decline to 3.9% of GDP in 2018, down from 5%
in 2017 and 7.4% in 2016 on the back of the government's new
fiscal consolidation strategy. To date, the adjustment has come
largely from a reduction in capital expenditures and a pick-up in
revenues due to the higher average oil price and the economic
recovery in 2017. The government has also announced cuts in
government consultants and mergers between government ministries
and public-sector enterprises, which should lower the government's
wage and salary bill as well.

Fitch expects only very gradual fiscal deficit reductions in 2019
- 2020, partly due to the slowdown in economic growth and pension-
related spending pressures beginning in 2019 (when the government
is required to begin contributing to the national social security
fund). Although Fitch expects government debt/GDP to continue to
rise over the forecast period to 56.4% of GDP by 2020, the ratio
will rise at a more gradual pace than in 2013 - 2017.

SOVEREIGN RATING MODEL (SRM) and QUALITATIVE OVERLAY (QO)
Fitch's proprietary SRM assigns Ecuador a score equivalent to a
rating of 'B+' on the Long-Term Foreign-Currency IDR scale.

Fitch's sovereign rating committee adjusted the output from the
SRM to arrive at the final Long-Term Foreign-Currency IDR by
applying its QO, relative to rated peers, as follows:

  -- Macroeconomic: -1 notch, to reflect Ecuador's lower growth
prospects than rating peers and weaker macroeconomic policy
credibility given the large fiscal imbalances in the context of
official dollarisation.

  -- Fiscal: -1 notch, to reflect fiscal financing constraints
given the sovereign's large borrowing needs and limited domestic
financing options given the shallowness of the local market

Fitch's SRM is the agency's proprietary multiple regression rating
model that employs 18 variables based on three-year centered
averages, including one year of forecasts, to produce a score
equivalent to a Long-Term Foreign Currency IDR. Fitch's QO is a
forward-looking qualitative framework designed to allow for
adjustment to the SRM output to assign the final rating,
reflecting factors within its criteria that are not fully
quantifiable and/or not fully reflected in the SRM.

RATING SENSITIVITIES

The main factors that could lead to a positive rating action
include:

  -- Further fiscal policy adjustments that narrow the budget
deficit and improve the trajectory of government debt/GDP;

  -- Improvements in the economy's external liquidity position
that provides a more ample buffer to external shocks;

  -- Economic recovery resulting from higher investment in the oil
and mining sectors, productivity-enhancing reforms and
improvements in the business environment.

The main factors that could lead to a downgrade include:

  -- The emergence of severe fiscal financing constraints that
lead to an abrupt economic adjustment;

  -- Failure to narrow the fiscal deficit and/or persistent weak
economic growth, leading to a continued rapid rise in the
government's debt burden;

  -- Governing challenges that undermine the government's
policymaking capacity.

KEY ASSUMPTIONS

The ratings and Outlook are sensitive to a number of assumptions:

  -- The growth, fiscal and external forecasts assume that oil
production gradually rises to 530,000 barrels a day by year-end
2018, up from 519,000 in 1H18. Fitch's latest projections point to
a recovery in Brent oil prices to USD70 per barrel in 2018, USD65
in 2019 and USD57.5 in 2020.

Fitch has taken the following actions:

  -- Long-Term Foreign-Currency IDR downgraded to 'B-' from 'B';
Outlook revised to Stable from Negative;

  -- Short-Term Foreign-Currency IDR affirmed at 'B';

  -- Country Ceiling revised to 'B-' from 'B';

  -- Issue ratings on long-term senior unsecured foreign-currency
bonds downgraded to 'B-' from 'B'.

Fitch has assigned the following:

  -- Long-Term Local-Currency IDR 'B-'; Outlook Stable;

  -- Short-Term Local-Currency IDR 'B'.


====================
E L  S A L V A D O R
====================


EL SALVADOR: Establishes Diplomatic Ties With China
---------------------------------------------------
Sputnik News reports that the government of El Salvador disclosed
the establishment of diplomatic relations with China after
breaking official ties with Taiwan.

Chinese Foreign Minister Wang Yi and Foreign Minister of El
Salvador Carlos Castaneda signed a joint communique on the
establishment of diplomatic relations between People's Republic of
China and the Republic of El Salvador, according to Sputnik News.

The report relays that Taiwan President responded to the move by
saying that cutting ties shows China's pressure on Taiwan,
stressing that Taiwan would fight against China's "increasingly
out of control" behavior.

El Salvador became the third country that broke off relations with
Taiwan over the past few months, the report notes.  Dominican
Republic and Burkina Faso announced a similar decision on May 1
and May 24, respectively, the report relays.  At the moment, there
are only 17 states retaining official ties with Taiwan, the report
discloses.

Official relations between central Chinese authorities and Taiwan
stopped in 1949, when the Kuomintang government led by Chiang Kai-
shek fled to Taipei after being defeated by the Chinese Communist
Party, establishing the Republic of China on the island, the
report says.  Informal contacts resumed in 1980s, the report adds.

Beijing does not recognize Taiwanese independence and claims the
island is part of China, the report relays.  Taiwan similarly does
not recognize the central government in Beijing, the report
discloses.

As reported in the Troubled Company Reporter-Latin America on
June 15, 2018, Fitch Ratings has affirmed El Salvador's long-term,
foreign-currency Issuer Default Rating (IDR) at 'B-' with a Stable
Outlook.

El Salvador's 'B-' rating reflects its recent history of local
currency defaults and heightened political tensions that made
reaching agreements on government financing difficult (a two-
thirds majority in the legislature is needed for external debt
authorization).


=============
J A M A I C A
=============


JAMAICA: "Not to Worry" on Depreciation of Local Currency
---------------------------------------------------------
RJR News reports that the Central Bank is again telling the public
there is no need to worry about the depreciation of the Jamaican
dollar against the US currency.

Speaking on TVJ's Smile Jamaica, Deputy Governor for the Research
& Economic programming division at the Bank of Jamaica, Wayne
Robinson, said at the moment the BoJ is not concerned about the
exchange rate, according to RJR News.

He said the BOJ is monitoring the issue and will decide whether to
take action, the report notes.

"When we will become concerned, it's under two conditions.  When
we see that the rate of movement will have an impact on inflation.
Also if we see a situation where the foreign exchange market
itself stops functioning -- so you'll go to your bank and the bank
will say there are no US dollars.  That's when we will start to
act," the report quoted Mr. Robinson as saying.

Mr. Robinson adds that the exchange rate is no longer the main
factor in the price of goods and services, the report relays.

"What we do as policy makers is to look at prices on average. So
the statistical institute of Jamaica, every month, they survey
over 500 prices right across the country and they compile an
average price in the economy and that is what we look at as
policymakers. So you could have some prices going up above the
average and you could have some prices going down as well," Mr.
Robinson said, the report notes.

On Aug. 20, the Jamaican dollar has sunk to a new low against the
U.S. currency, the report relays.

The greenback is now being sold for an average J$137.45 cents,
notes the report.

Since the start of the year, the Jamaican dollar has devalued by
about 9 per cent, the report adds.

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


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


BANCO MONEX: S&P Affirms BB+/B Global Scale Rating, Outlook Stable
------------------------------------------------------------------
S&P Global Ratings affirmed its 'BB+/B' global scale and
'mxA+/mxA-1' national scale ratings on Banco Monex, S. A.,
Institucion de Banca Multiple, Monex Grupo Financiero (Banco
Monex). At the same time, S&P affirmed its 'mxA+/mxA-1' ratings on
Monex Casa de Bolsa S.A. The outlook on all ratings remains
stable.

S&P said, "Our ratings on Banco Monex reflect its leading position
in the FX segment, although the bank still has a small share of
the Mexican banking industry in terms of loans and deposits. Also,
our ratings are based on our projected RAC ratio of about 10.3%
for the next two years, following a recent capital injection of
MXN500 million into Banco Monex, and adequate internal capital
generation despite higher non-performing assets. We expect the
bank to maintain its strong capital levels stemming from its FX
revenue and stable dividend payout policy. Despite recent
deterioration in bank's NPAs, we believe Banco Monex's asset
quality metrics will remain in line with those of national and
regional peers with the same risk position assessment. The bank's
stable funding ratio (SFR) remains slightly below that of the
Mexican financial system average because Banco Monex's loan book
has grown faster than its stable funding sources. Finally, in our
view, the bank's liquidity benefits from a manageable debt
maturity profile that results in low refinancing risk. Banco
Monex's stand-alone credit profile (SACP) remains at 'bb+'."


GRUPO KALTEX: Fitch Cuts LT Issuer Default Ratings to 'CCC'
-----------------------------------------------------------
Fitch Ratings has downgraded Grupo Kaltex, S.A. de C.V.'s (Grupo
Kaltex) Long-Term Local and Foreign Currency Issuer Default
Ratings (IDRs) to 'CCC' from 'B-'. Fitch has also downgraded the
company's USD320 million senior secured notes due 2022 to
'CCC'/'RR4' from 'B-'/'RR4'. Prior to Fitch's downgrades, the
ratings were on Rating Watch Negative.

The ratings downgrade reflects Fitch's view of the company's tight
liquidity compared to debt service and short-term debt. Cash
balance at June 30, 2018 was USD16 million, with short-term debt
of USD40 million (approximately USD25 million correspond to
revolving credit lines) and an interest coupon payment of USD14.2
million on Oct. 11, 2018. The planned asset sales for
approximately USD25 million to take place during the second
quarter of 2018 hasn't been completed. However, Kaltex's
shareholders loaned USD17 million to cover working capital
requirements in light of still weak operating results instead of
improving the company's liquidity position or debt reduction.
During the last 12 months (LTM) ended on June 30, 2018, EBITDA
margin was 7.4% compared to 7% and 11.6% in FY 2017 and 2016,
respectively. EBITDA generation increased approximately 8%,
compared to 2017 year-end, due to higher sales volume and sales
prices. This improvement has not been enough to strengthen the
company's credit metrics. The interest coverage ratio remains
below 2.0x, and adjusted leverage level is above 5.5x.

The ratings reflect Fitch's assumption that the company will meet
interest payments in October and remain reliant on the completion
of asset sales of approximately USD25 million or equity injections
in the same amount absent an improvement in the operating cash
flow to strengthen its liquidity position and to reduce debt. Any
indication of risks related to debt service payment will result in
additional downgrades.

The ratings also reflect the company's exposure to the cyclicality
of the textile industry, level of consumer demand, input cost
prices volatility, limitation of transferring cost increases into
prices in a rapid manner and absence of long-term customer
contracts. In addition, the ratings take into account Grupo
Kaltex's revenue diversification, good commercial relations with
top quality customers and its position as the fourth global
largest denim player in terms of installed capacity.

KEY RATING DRIVERS

Negative FCF generation: At June 30, 2018, Kaltex's FCF generation
was impacted adversely by high working capital requirements and
capital expenditures, affecting the company's cash balance. During
the LTM ended on June 30, 2018, the negative FCF generation was
approximately USD37 million. Positive FCF generation is the key
aspect to strengthen the company's liquidity position. Kaltex
received shareholders support in the form of a subordinated loan
of USD17 million; Fitch underscores this as critical for the
company's business going concern.

Increased Leverage Reduces Flexibility: The company recorded an
adjusted leverage level, measured as total adjusted debt for
operating leases over EBITDAR of 5.7x at LTM ended June 30, 2018
in MXN terms. Fitch projects that this ratio would reach 5.6x at
the end of 2018 and 5.1x at the end of 2019. These values are
higher than Fitch's previous expectation of around 4.4x in 2018
and 4.0x in 2019 and prevent the company to incur in additional
indebtedness.

Management is currently working in asset sales in the form of
available land. Proceeds are intended to reduce debt levels and
strengthen Kaltex liquidity. In its base case, Fitch is not
including these potential cash flows until they are apparent.

Profitability to Stabilize Lower than Anticipated: During the LTM
ended on June 30, 2018, higher average sales prices and sales
volume increased Kaltex's EBITDA generation. This improvement has
not been enough to strengthen the interest coverage ratio above
2.0x and to reduce the adjusted leverage level below 5.5x. Fitch
expects Kaltex operations to stabilize, with EBITDA margins of
approximately 8%, which is lower than the originally anticipated
ranges of 10%-11%.

Exposure to Cyclical Industry: The ratings reflect the company's
exposure to the cyclicality of the textile industry, level of
consumer demand, input cost prices volatility, inability to
transfer cost increases into prices rapidly and absence of long-
term customer contracts.

The company's operations depend on variables affecting
discretionary consumer spending, including general economic
conditions, consumer confidence, unemployment, consumer debt,
interest rates and political conditions. A decline in
discretionary consumer spending may cause volatility in sales
volume. Kaltex is exposed to input cost price volatility and is
limited in its scope to transfer cost increases into end consumer
prices rapidly. The company also exhibits customer concentration,
which increases operational risk, as customers may experience weak
performance or decide to shift to a different supplier.

Business Diversification: Grupo Kaltex's cash flow and
profitability are supported by a diversified revenue base,
operating vertical integration and product offerings. The company
has diversified revenue by product type and geographic market,
which reduces the risk of concentration in one segment of the
textile industry, and to partially mitigate for adverse economic
cycles in a particular region. During the second quarter of 2018,
56% of Grupo Kaltex's total revenues were generated in Mexican
pesos, 39% in U.S. dollars, and 5% in Colombian pesos.

DERIVATION SUMMARY

Kaltex's business position is limited by its exposure to cost
increases and sales volume sensitivity to price upturns; this
exposure results in higher volatility of cash flows. The company's
liquidity position is tight compared to debt service and short-
term debt. Grupo IDESA, S.A. de C.V. (IDESA) (B-/Outlook Negative)
faces pressures on its capital structure resulting from a
weakening in its standalone credit profile and its tight
liquidity.

The company's deteriorated financial and liquidity metrics are
deemed in line with the 'CCC' category. Kaltex's scale of
operations, financial profile, profitability and leverage levels
compare unfavorably to denim companies in the 'BB' category, such
as Levi Strauss & Co. and L Brands, Inc.

KEY ASSUMPTIONS

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

  -- Revenue of approximately MXN17,800 million average over the
next four years;

  -- EBITDA margin about 8.1% in average;

  -- Capex of approximately 3.0% over sales;

  -- Capex funded with cash flow from operations;

  -- Adjusted Debt/EBITDAR levels around 5.3x over the next two
years.

The recovery analysis assumes that Grupo Kaltex would be
considered a going-concern in bankruptcy and that the company
would be reorganized rather than liquidated. Fitch has assumed a
10% administrative claim.

The going-concern EBITDA estimate reflects Fitch's view of a
sustainable, post-reorganization EBITDA level upon which Fitch
bases the valuation of the company.

Fitch assumes that an inability to offset cost increases and a
tougher operating environment within the NAFTA region can result
in further erosion of Kaltex's EBITDA and cash balance. The post-
reorganization EBITDA assumption is MXN782 million, which
represents close to 40% of discount to the LTM EBITDA as of June
30, 2018, reflecting a distressed level of revenue generation
across business lines. An EV multiple of 4x was used to calculate
a post-reorganization valuation based in a distressed company
profile in a low growth industry in Latin America.

Fitch calculates the recovery prospects for the senior secured
notes in the 31% to 50% range based on a waterfall approach. This
level of recovery results in the company's senior secured notes
being rated the same as its IDR of
'CCC'/'RR4'.

RATING SENSITIVITIES

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

  -- Improved liquidity profile in the form of equity injections
or asset sales;

  -- FFO and EBIT margins above 5%, EBITDA margin improvement to
above 10%, expansion of positive FCF margin above 1%, and stable
operating results through industry and economic cycles resulting
in a total adjusted debt/EBITDAR consistently below 4.5x.

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

  -- Failure to improve liquidity and complete asset sales or
equity injections;

  -- Perception of risks on meeting interest payments.

  -- Continued operational pressures resulting in EBITDA /
Interest expense below 1x.

LIQUIDITY

Tight Liquidity Position: At June 30, 2018, the company's
available cash balance was USD16 million with senior notes
interest payment of USD14.2 million on Oct. 11 and approximately
USD40 million of short-term debt due between June 2018 and June
2019.

At June 30, 2018, Grupo Kaltex reported a total debt of USD372
million, of which 97% was denominated in U.S. dollars and the rest
in Colombian pesos. The debt consists mainly of USD320 million
senior secured notes due 2022, and the rest are bank loans. As of
June 30, 2018, the issuer and the subsidiary guarantors
collectively accounted for about 72% of Grupo Kaltex's
consolidated assets, 88% of the consolidated EBITDA and 93% of
consolidated sales.

In addition, the notes are secured by mortgages that include a
plant located in Tepeji del Rio, Hidalgo, Mexico, and a Mexican
plant located in Altamira, Tamaulipas, a non-possessory pledge
agreement that includes machinery and equipment owned by
Manufacturas Kaltex, S.A. de C.V. and a non-possessory pledge
agreement covering machinery and equipment owned by Kaltex Fibers,
S.A. de C.V. Based upon appraisals conducted in December of 2017,
the approximate value of the collateral was MXN1,917 million
(approximately USD97 million).

Kaltex's current operations are not able to cover working capital
requirements which increase liquidity risk. The company expects
lower working capital requirements during the second half of 2018
due to the seasonality of the textile and retail business. Kaltex
expects to sell the second piece of land for an amount of USD25
million absent and improvement in cash flow generation. Proceeds
are intended to reduce debt and to support operations.

FULL LIST OF RATING ACTIONS

Fitch has downgraded the following ratings:

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

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

  -- Senior secured 8.875% USD320 million notes due 2022 to
'CCC'/'RR4' from 'B-'/'RR4'.


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


PARAGUAY: Tosses Out Ex-President's Environment-Damaging Decree
---------------------------------------------------------------
EFE News reports that the new Paraguayan administration of
President Mario Abdo Benitez disclosed that it was revoking the
forestry law decreed by the government of previous President
Horacio Cartes, which environmental organizations said was an
attempt to trash legal protection for the nation's natural forest
reserves.

The head of the National Forestry Institute (Infona), Cristina
Goralewski, told the media that the repeal of Decree 7702, issued
last September, was a "prudent" and opportune decision, after
meeting with Abdo Benitez, according to EFE News.

As reported in the Troubled Company Reporter-Latin America on
June 28, 2018, S&P Global Ratings, on June 25, 2018, affirmed its
'BB/B' long-and short-term sovereign credit ratings on Paraguay.
The outlook remains stable. At the same time, S&P affirmed its
'BB+' transfer and convertibility assessment on Paraguay.


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


AUGUST SAGE: Plan Outline Hearing Set for Oct. 2
------------------------------------------------
Bankruptcy Judge Enrique S. Lamoutte Inclan is set to hold a
hearing on Oct. 2, 2018 at 10:00 A.M. to consider and rule upon
the adequacy of August Sage Holdings LLC's disclosure statement
explaining its chapter 11 plan.

Written objections to the disclosure statement must be filed and
served not less than 14 days prior to the hearing.

A copy of the Disclosure Statement jointly filed by JDHG, LLC,
Caribbean Winds, Inc., August Sage Holdings, LLC, and Green
Horizon, Inc., is available at:

      http://bankrupt.com/misc/prb18-02811-11-68.pdf

               About August Sage Holdings

August Sage Holdings LLC owns three properties in San Juan, Puerto
Rico, consisting of: (a) 423.72 square meters with a two-story
residence (Wind Chimes Hotel); (b) 393.57 square meters with a
two-story residence (Wind Chimes Inn Hotel; and (c) 546.07 square
meters with a two-story residence (known as Cervantes 12).  The
company valued the properties at $2.1 million in the aggregate.

August Sage Holding sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-02808) on May 21, 2018.
In the petition signed by John B. Dennis Brull, president, the
Debtor disclosed $2.10 million in assets and $1.94 million in
liabilities.  Judge Enrique S. Lamoutte Inclan presides over the
case.


CARIBBEAN WINDS: Oct. 2 Disclosure Statement Hearing
----------------------------------------------------
Bankruptcy Judge Enrique S. Lamoutte Inclan is set to hold a
hearing on Oct. 2, 2018 at 10:00 A.M. to consider and rule upon
the adequacy of Caribbean Winds Inc.'s disclosure statement
explaining its chapter 11 plan.

Written objections to the disclosure statement must be filed and
served not less than 14 days prior to the hearing.

A copy of the Disclosure Statement jointly filed by JDHG, LLC,
Caribbean Winds, Inc., August Sage Holdings, LLC, and Green
Horizon, Inc., is available at:

      http://bankrupt.com/misc/prb18-02811-11-68.pdf

                About Caribbean Winds Inc.

Caribbean Winds Inc. owns in fee simple the Acacia Seaside Inn
Hotel located at No. 8 Taft Street, Santurce Ward, San Juan,
Puerto Rico, having an appraised value of $1.4 million.

Caribbean Winds sought protection under Chapter 11 of the
Bankruptcy Code (Bankr. D.P.R. Case No. 18-02809) on May 21, 2018.
In the petition signed by John B. Dennis Brull, president, the
Debtor disclosed $7.06 million in assets and $20.22 million in
liabilities.  Judge Brian K. Tester presides over the case.


GREEN HORIZON: Hearing on Disclosure Statement Set for Oct. 2
-------------------------------------------------------------
Bankruptcy Judge Enrique S. Lamoutte Inclan is set to hold a
hearing on Oct. 2, 2018 at 10:00 A.M. to consider and rule upon
the adequacy of Green Horizon Inc.'s disclosure statement
explaining its chapter 11 plan.

Written objections to the disclosure statement must be filed and
served not less than 14 days prior to the hearing.

A copy of the Disclosure Statement jointly filed by JDHG, LLC,
Caribbean Winds, Inc., August Sage Holdings, LLC, and Green
Horizon, Inc., is available at:

      http://bankrupt.com/misc/prb18-02811-11-68.pdf

                 About Green Horizon Inc.

Green Horizon Inc. is the fee simple owner of Blue Horizon
Boutique Hotel located at State Road 996 km 4.3, La Hueca Sector,
Puerto Real Ward, Vieques, Puerto Rico, having an appraised value
of $2.15 million.

Green Horizon sought protection under Chapter 11 of the Bankruptcy
Code (Bankr. D.P.R. Case No. 18-02811) on May 21, 2018.  In the
petition signed by John B. Dennis Brull, president, the Debtor
disclosed $2.57 million in assets and $19.71 million in
liabilities.  Judge Enrique S. Lamoutte Inclan presides over the
case.


J & M SALES INC: Taps Mr. Kroll of SierraConstellation as CRO
-------------------------------------------------------------
J & M Sales Inc., and its debtor-affiliates seek authority from
the U.S. Bankruptcy Court for the District of Delaware to employ
Mr. Curt Kroll of SierraConstellation Partners, LLC, as chief
restructuring officer to the Debtors.

J & M Sales Inc. requires SierraConstellation to:

   a. prepare the Debtors' cash flow forecasts and financing
      requirements;

   b. assist and support the Debtors and their investment banker
      in identifying, negotiating, and closing the debtor-in-
      possession financing;

   c. assist and support the Debtors and their investment banker
      in identifying, negotiation, and closing an asset sale;

   d. prepare petitions, schedules, and statements for the
      Debtors' bankruptcy filing;

   e. provide assistance in the management of schedules and
      report for filing in a court-supervised proceedings;

   f. provide testimony and serve as the responsible party for
      reporting requirements in Delaware;

   g. provide interim management support related to the Debtors'
      operations and cash flow management during the bankruptcy
      process;

   h. provide management support in evaluating and responding to
      parties during negotiation, including landlords, vendors,
      potential buyers, and other key constituents;

   i. provide analysis and services related to lease assumptions,
      rejections, modifications, or terminations;

   j. interact with the unsecured creditors committee, and assist
      in the preparation of management reports; and

   k. assist in the drafting and confirming of a plan of
      reorganization, if necessary.

SierraConstellation will be paid at these hourly rates:

     Lawrence Perkins, Engagement Principal           $575
     Curt Kroll, CRO                                  $400
     Managing Directors                               $450-$625
     Senior Directors                                 $525
     Directors                                        $375-$475
     Associates                                       $250-$350
     Analysts                                         $100-$200
     Administrative Staffs                            $115

On June 25, 2018 SierraConstellation received a retainer of
$100,000 as retainer. On July 2018 and additional amount of
$100,000 was paid by the Debtors to SierraConstellation. On August
1, 2018, SierraConstellation received a replenishment of the
Retainer of $300,000 to cover fees and expenses incurred prior to
the petition date. As of the petition date, SierraConstellation is
holding $186,751.39 as a Retainer.

SierraConstellation will also be reimbursed for reasonable
out-of-pocket expenses incurred.

Kurt Kroll, senior director of SierraConstellation Partners, LLC,
assured the Court that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code and does
not represent any interest adverse to the Debtors and their
estates.

SierraConstellation can be reached at:

     Kurt Kroll
     SIERRACONSTELLATION PARTNERS, LLC
     400 South Hope Street, Suite 1050
     Los Angeles, CA 90071
     Tel: (213) 289-9060

                  About J & M Sales Inc.

National Stores is a 344-store chain in 22 U.S. states and Puerto
Rico. National Stores currently does business as Fallas, Fallas
Paredes, Fallas Discount Stores, Factory 2-U, Anna's Linen's by
Fallas, and Falas (spelled with single "l" in Puerto Rico).
Fallas, which emplolys 9,800 people, is a discount retailer
offering value-priced merchandise, including apparel, bedding and
household supplies. The brands of National Stores are located in
retail plazas, specialty centers, and downtown areas to serve the
communities its customers and staff members call home.

National Stores, Inc., and its affiliates sought Chapter 11
protection and Aug. 6, 2018, and announced that Hilco Merchant
Resources, LLC, is conducting going-out-of-business sales for 74
stores. The lead case is In re J & M Sales Inc. (Bankr. D. Del.
Lead Case No. 18-11801).

J & M Sales estimated assets and debt of $100 million to $500
million as of the bankruptcy filing.

The Hon. Laurie Selber Silverstein is the case judge.

The Debtors tapped Katten Muchin Rosenman LLP as general
bankruptcy counsel, Pachulski Stang Ziel & Jones LLP as bankruptcy
co-counsel, Retail Consulting Services, Inc., as real estate
advisor, Imperial Capital, LLC, as investment banker, and Prime
Clerk LLC as the claims and noticing agent.  SierraConstellation
Partners, LLC, is providing personnel to serve as chief
restructuring officer and support staff.


J & M SALES INC: Seeks to Hire Katten Muchin as Co-Counsel
----------------------------------------------------------
J & M Sales Inc., and its debtor-affiliates seek authority from
the U.S. Bankruptcy Court for the District of Delaware to employ
Katten Muchin Rosenman LLP, as co-counsel to the Debtors.

J & M Sales Inc. requires Katten Muchin to:

   a. provide legal advice with respect to the Debtors' powers
      and duties as debtors in possession in the continued
      operation of their business and management of their
      properties;

   b. prepare and pursue a restructuring, including a potential
      sale, process a confirmation of a plan and approval of a
      disclosure statement;

   c. prepare on behalf of the Debtors, necessary applications,
      motions, answers, orders, reports, and other legal papers;

   d. appear in the Bankruptcy Court and protect the interests of
      the Debtors before the Bankruptcy Court;

   e. provide assistance, advice and representation concerning
      any investigation of the assets, liabilities, and financial
      condition of the Debtors that may be required under local,
      state or federal or orders of the Bankruptcy Court or any
      other court of competent jurisdiction;

   f. provide counsel and representation with respect to
      assumption or rejection of executor contracts and leases,
      sales of assets and other bankruptcy-related matters
      arising from the Chapter 11 cases;

   g. advise the Debtors regarding matters of bankruptcy law;

   h. render advice with respect to general corporate and
      litigation issues related to the Chapter 11 cases,
      including securities, corporate finance, labor, tax and
      commercial matters; and

   i. perform all other services assigned by the Debtors to
      Katten Muchin as co-counsel to the Debtors.

Katten Muchin will be paid at these hourly rates:

     Partners             $740 to $1,350
     Associates           $425 to $875

On July 2, 2018, Katten Muchin received an initial retainer of
$2,000,000. On July 13, 2018, Katten Muchin received an additional
advance fee of $200,000. On July 20, 2018, Katten Muchin received
an additional $200,000 advance fee. On August 1, 2018, Katten
Muchin received an additional advance fee of $400,000 to replenish
the Retainer.

Prior to the petition date, Katten Muchin applied $506,014.72 of
the Retainer, leaving a balance of $493,985.28 held in the firm's
trust account.

Katten Muchin will also be reimbursed for reasonable out-of-pocket
expenses incurred.

William B. Freeman, a partner at Katten Muchin Rosenman, assured
the Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtors and their estates.

Katten Muchin can be reached at:

     William B. Freeman, Esq.
     Karen B. Dine, Esq.
     Jerry L. Hall, Esq.
     KATTEN MUCHIN ROSENMAN LLP
     575 Madison Avenue
     New York, NY 10022
     Tel: (202) 940-8800
     Fax: (202) 940-8776
     E-mail: bill.freeman@kattenlaw.com
             karen.dine@kattenlaw.com
             jerry.hall@kattenlaw.com

                  About J & M Sales Inc.

National Stores is a 344-store chain in 22 U.S. states and Puerto
Rico. National Stores currently does business as Fallas, Fallas
Paredes, Fallas Discount Stores, Factory 2-U, Anna's Linen's by
Fallas, and Falas (spelled with single "l" in Puerto Rico).
Fallas, which emplolys 9,800 people, is a discount retailer
offering value-priced merchandise, including apparel, bedding and
household supplies. The brands of National Stores are located in
retail plazas, specialty centers, and downtown areas to serve the
communities its customers and staff members call home.

National Stores, Inc., and its affiliates sought Chapter 11
protection and Aug. 6, 2018, and announced that Hilco Merchant
Resources, LLC, is conducting going-out-of-business sales for 74
stores. The lead case is In re J & M Sales Inc. (Bankr. D. Del.
Lead Case No. 18-11801).

J & M Sales estimated assets and debt of $100 million to $500
million as of the bankruptcy filing.

The Hon. Laurie Selber Silverstein is the case judge.

The Debtors tapped Katten Muchin Rosenman LLP as general
bankruptcy counsel, Pachulski Stang Ziel & Jones LLP as bankruptcy
co-counsel, Retail Consulting Services, Inc., as real estate
advisor, Imperial Capital, LLC, as investment banker, and Prime
Clerk LLC as the claims and noticing agent.  SierraConstellation
Partners, LLC, is providing personnel to serve as chief
restructuring officer and support staff.


J & M SALES INC: Hires Prime Clerk as Administrative Agent
----------------------------------------------------------
J & M Sales Inc., and its debtor-affiliates seek authority from
the U.S. Bankruptcy Court for the District of Delaware to employ
Prime Clerk LLC, as administrative agent to the Debtors.

J & M Sales Inc. requires Prime Clerk to:

   a. assist with, among other things, solicitation, balloting,
      and tabulation of votes, and prepare any related reports,
      as required in support of confirmation of a chapter 11
      plan, and in connection with such services, process
      requests for documents from parties in interest, including,
      if applicable, brokerage firms, bank back-offices, and
      institutional holders;

   b. prepare an official ballot certification and, if necessary,
      testify in support of the ballot tabulation results;

   c. assist with the preparation of the Debtors' schedules of
      assets and liabilities and statements of financial affairs
      and gather data in conjunction therewith;

   d. provide a confidential data room, if requested;

   e. manage and coordinate any distributions pursuant to a
      chapter 11 plan; and

   f. provide such other processing, solicitation, balloting, and
      other administrative services described in the Engagement
      Agreement, but not covered by the Section 156(c) Order, as
      may be requested from time to time by the Debtors, the
      Court, or the Office of the Clerk of the Bankruptcy Court
      (the "Clerk").

Prime Clerk will be paid at these hourly rates:

     Director of Solicitation                $210
     Solicitation Consultant                 $190
     COO and Executive VP                 No charge
     Director                             $175 to $195
     Consultant/Senior Consultant          $65 to $165
     Technology Consultant                 $35 to $95
     Analyst                               $30 to $50

Prime Clerk will be paid a retainer in the amount of $10,000.

Prime Clerk will also be reimbursed for reasonable out-of-pocket
expenses incurred.

Benjamin J. Steele, vice president of Prime Clerk LLC, assured the
Court that the firm is a "disinterested person" as the term is
defined in Section 101(14) of the Bankruptcy Code and does not
represent any interest adverse to the Debtors and their estates.

Prime Clerk can be reached at:

     Benjamin J. Steele
     PRIME CLERK LLC
     830 3rd Avenue, 9th Floor
     New York, NY 10022
     Tel: (212) 257-5450

                      About J & M Sales Inc.

National Stores is a 344-store chain in 22 U.S. states and Puerto
Rico. National Stores currently does business as Fallas, Fallas
Paredes, Fallas Discount Stores, Factory 2-U, Anna's Linen's by
Fallas, and Falas (spelled with single "l" in Puerto Rico).
Fallas, which emplolys 9,800 people, is a discount retailer
offering value-priced merchandise, including apparel, bedding and
household supplies. The brands of National Stores are located in
retail plazas, specialty centers, and downtown areas to serve the
communities its customers and staff members call home.

National Stores, Inc., and its affiliates sought Chapter 11
protection and Aug. 6, 2018, and announced that Hilco Merchant
Resources, LLC, is conducting going-out-of-business sales for 74
stores. The lead case is In re J & M Sales Inc. (Bankr. D. Del.
Lead Case No. 18-11801).

J & M Sales estimated assets and debt of $100 million to $500
million as of the bankruptcy filing.

The Hon. Laurie Selber Silverstein is the case judge.

The Debtors tapped Katten Muchin Rosenman LLP as general
bankruptcy counsel, Pachulski Stang Ziel & Jones LLP as bankruptcy
co-counsel, Retail Consulting Services, Inc., as real estate
advisor, Imperial Capital, LLC, as investment banker, and Prime
Clerk LLC as the claims and noticing agent.  SierraConstellation
Partners, LLC, is providing personnel to serve as chief
restructuring officer and support staff.


J & M SALES INC: Seeks to Hire Pachulski Stang as Co-Counsel
------------------------------------------------------------
J & M Sales Inc., and its debtor-affiliates seek authority from
the U.S. Bankruptcy Court for the District of Delaware to employ
Pachulski Stang Ziehl & Jones LLP, as co-counsel to the Debtors.

J & M Sales Inc. requires Pachulski Stang to:

   a. provide legal advice with respect to the Debtors' powers
      and duties as debtors-in-possession in the continued
      operation of their business and management of their
      properties;

   b. prepare on behalf of the Debtors any necessary
      applications, motions, answers, orders, reports, and other
      legal papers;

   c. appear in the Bankruptcy Court on behalf of the Debtors;

   d. prepare and pursue a restructuring, including a potential
      sale process a confirmation of a plan and approval of a
      disclosure statement; and

   e. perform other legal services for the Debtors that may be
      necessary and proper in the bankruptcy proceedings.

Pachulski Stang will be paid at these hourly rates:

     Partners                   $650 to $1,295
     Of Counsel                 $595 to $1,025
     Associates                 $495 to $595
     Paraprofessionals          $295 to $395

Pachulski Stang has receied payments from the Debtors during the
year prior to the petition date in the amount of $450,000 in
connection with the preparation of initial documents and the
prepetition representation of the Debtors.

Pachulski Stang will also be reimbursed for reasonable
out-of-pocket expenses incurred.

In accordance with Appendix B-Guidelines for Reviewing
Applications
for Compensation and Reimbursement of Expenses Filed under 11
U.S.C. Sec. 330 for Attorneys in Larger Chapter 11 Cases, the
following is provided in response to the request for additional
information:

   Question:  Did you agree to any variations from, or
              alternatives to, your standard or customary billing
              arrangements for this engagement?

   Response:  No.

   Question:  Do any of the professionals included in this
              engagement vary their rate based on the geographic
              location of the bankruptcy case?

   Response:  No.

   Question:  If you represented the client in the 12 months
              prepetition, disclose your billing rates and
              material financial terms for the prepetition
              engagement, including any adjustments during the 12
              months prepetition. If your billing rates and
              material financial terms have changed postpetition,
              explain the difference and the reasons for the
              difference.

   Response:  Pachulski Stang represented the Debtors for one
              month during the 12 month period prepetition. The
              material financial terms for the prepetition
              engagement remained the same as the engagement was
              hourly-based subject to economic adjustment.

              The billing rates and material financial terms for
              the postpetition period remain the same as the
              prepetition period subject to an annual economic
              adjustment. The standard hourly rates of Pachulski
              Stang are subject to periodic adjustment in
              accordance with the Firm's practice.

   Question:  Has your client approved your prospective budget
              and staffing plan, and, if so for what budget
              period?

   Response:  The Debtors and Pachulski Stang expect to develop a
              prospective budget and staffing plan to comply with
              the U.S. Trustee's request for information and
              additional disclosures, recognizing that in the
              course of the Chapter 11 case, there may be
              unforeseeable fees and expenses that will need to
              be addressed by the Debtors and Pachulski Stang.

Richard M. Pachulski, partner of Pachulski Stang Ziehl & Jones
LLP,
assured the Court that the firm is a "disinterested person" as the
term is defined in Section 101(14) of the Bankruptcy Code and does
not represent any interest adverse to the Debtors and their
estates.

Pachulski Stang can be reached at:

     Richard M. Pachulski, Esq.
     Peter J. Keane, Esq.
     PACHULSKI STANG ZIEHL & JONES LLP
     919 North Market Street, 17th Floor
     Wilmington, DE 19899-8705
     Telephone: (302) 652-4100
     Facsimile: (302) 652-4400
     E-mail: rpachulski@pszjlaw.com
             pkeane@pszjlaw.com

                  About J & M Sales Inc.

National Stores is a 344-store chain in 22 U.S. states and Puerto
Rico. National Stores currently does business as Fallas, Fallas
Paredes, Fallas Discount Stores, Factory 2-U, Anna's Linen's by
Fallas, and Falas (spelled with single "l" in Puerto Rico).
Fallas, which emplolys 9,800 people, is a discount retailer
offering value-priced merchandise, including apparel, bedding and
household supplies. The brands of National Stores are located in
retail plazas, specialty centers, and downtown areas to serve the
communities its customers and staff members call home.

National Stores, Inc., and its affiliates sought Chapter 11
protection and Aug. 6, 2018, and announced that Hilco Merchant
Resources, LLC, is conducting going-out-of-business sales for 74
stores. The lead case is In re J & M Sales Inc. (Bankr. D. Del.
Lead Case No. 18-11801).

J & M Sales estimated assets and debt of $100 million to $500
million as of the bankruptcy filing.

The Hon. Laurie Selber Silverstein is the case judge.

The Debtors tapped Katten Muchin Rosenman LLP as general
bankruptcy counsel, Pachulski Stang Ziel & Jones LLP as bankruptcy
co-counsel, Retail Consulting Services, Inc., as real estate
advisor, Imperial Capital, LLC, as investment banker, and Prime
Clerk LLC as the claims and noticing agent.  SierraConstellation
Partners, LLC, is providing personnel to serve as chief
restructuring officer and support staff.


JDHG LLC: Approval Hearing on Plan Outline Set for Oct. 2
----------------------------------------------------------
Bankruptcy Judge Enrique S. Lamoutte Inclan is set to hold a
hearing on Oct. 2, 2018 at 10:00 A.M. to consider and rule upon
the adequacy of JDHG, LLC's disclosure statement explaining its
chapter 11 plan.

Written objections to the disclosure statement must be filed and
served not less than 14 days prior to the hearing.

A copy of the Disclosure Statement jointly filed by JDHG, LLC,
Caribbean Winds, Inc., August Sage Holdings, LLC, and Green
Horizon, Inc., is available at:

      http://bankrupt.com/misc/prb18-02811-11-68.pdf

                     About JDHG LLC

JDHG, LLC owns hotel furniture and fixtures at Wind Chimes Inn
located in San Juan, Puerto Rico, and boat bar equipment valued at
$65,255 in total.  The company has accounts receivable of $4.6
million.

JDHG sought protection under Chapter 11 of the Bankruptcy Code
(Bankr. D. P.R. Case No. 18-02810) on May 21, 2018.  In the
petition signed by John B. Dennis Brull, president, the Debtor
disclosed $4.67 million in assets and $19.24 million in
liabilities.  Judge Mildred Caban Flores presides over the case.


PUERTO RICO: Peaje Investments Does Not Hold Statutory Lien
-----------------------------------------------------------
The United States Court of Appeals for the First Circuit affirms
both the Title III court's order granting defendants Puerto Rico
et al.'s motion to strike and the primary grounds for its order
denying Peaje Investments LLC's request for a preliminary
injunction and relief from the stay. The Court otherwise vacate
and remand for further proceedings.

The Court was asked for the second time to weigh in on Peaje's
claim that what it characterizes as its "collateral" is being
permanently impaired. Peaje is the beneficial owner of $65 million
of uninsured bonds issued by the Puerto Rico Highways and
Transportation Authority Peaje alleges that its bonds are secured
by a lien on certain toll revenues of the Authority and that, in
response to Puerto Rico's financial crisis, the Authority and the
Commonwealth of Puerto Rico are diverting funds to which Peaje
believes it is entitled under the lien and using them for purposes
other than paying the bonds. Because both the Authority and the
Commonwealth have commenced bankruptcy cases under Title III of
the Puerto Rico Oversight, Management, and Economic Stability Act
("PROMESA"), Peaje instituted the adversary proceedings on
consolidated appeal to challenge this diversion.

Despite the novelty and complexity of the bankruptcies from which
this case arose, three narrow rulings dispose of the appeal:
First, the district court did not abuse its discretion in limiting
Peaje to its argument that it holds a statutory lien on certain
toll revenues of the Authority. Second, Peaje does not hold such a
lien.  And third, the Court vacates the district court's
alternative reasons for denying relief so that they may be
reconsidered de novo on a comprehensive, updated record now that
it is clear that Peaje has no statutory lien.

Whether Peaje waived its non-statutory lien argument is admittedly
a close call. One can easily see why the statements to which the
Title III court pointed made it appear that Peaje was limiting
itself to asserting a statutory lien. At the same time, however,
the mutually exclusive nature of a security interest and a
statutory lien under the Code invited Peaje's counsel to
characterize its lien as statutory (and thus by definition not a
security interest), without intending to waive the logically
alternative argument, which defendants' prior statements in Peaje
I had not made an obvious subject of dispute.

Ultimately, what gives the Court confidence that the Title III
court did not abuse its discretion in granting the motion to
strike is the fact that any waiver here is not permanent, a point
that the Title III court itself made. Moreover, even were the
Court to rule in favor of Peaje on this issue, and thus consider
the other issues on appeal based on the premise that Peaje holds a
security interest, the most Peaje could realistically expect to
gain is a remand to take a renewed shot at obtaining relief on a
supplemented record that reflects where matters now stand.

The Court, therefore, affirms the Title III court's holding that,
for purposes of the motion on review, Peaje has limited itself to
arguments predicated upon its claim that it holds a statutory lien
on the Authority's toll revenues.

Peaje argues that it holds a statutory lien by virtue of the
Enabling Act. But none of the provisions Peaje cites supports his
assertion.

As the Title III court found, these provisions permit the
Authority to secure the payment of bonds by making a pledge of
revenues, but they do not require that it do so. Even the language
of section 2015 of the Act applies only to funds "pledged . . .
pursuant to . . . section 2004(l)," and such pledges are
voluntary.

Peaje counters that a statutory lien need not be specified
"exclusively and formally in some statutory text." Rather, Peaje
argues, the Code provides that a statutory lien can arise from
specified circumstances or conditions and, in its view, these
include "regulatory elaboration and agency action." Peaje is
correct about the definition but wrong about its application.

In sum, Peaje does not hold a statutory lien. As anticipated by
the parties, this conclusion, together with the Court's conclusion
that the Title III court did not abuse its discretion in
construing the limited nature of Peaje's motion, resolves this
appeal. With the only asserted lien (a statutory lien) found not
to exist, for purposes of this appeal, Peaje claims no relevant
property interest necessary to compel relief from the automatic
stay.

A full-text copy of the Court's Decision dated August 8, 2018 is
available at:

     http://bankrupt.com/misc/prb17-03567-479.pdf

                     About Puerto Rico

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

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

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

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

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

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

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

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

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

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

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

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

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

                    Bondholders' Attorneys

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

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

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

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

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

                          Committees

The U.S. Trustee formed an official committee of retirees and an
official committee of unsecured creditors of the Commonwealth.
The Retiree Committee tapped Jenner & Block LLP and Bennazar,
Garcia & Milian, C.S.P., as its attorneys.  The Creditors
Committee tapped Paul Hastings LLP and O'Neill & Gilmore LLC as
counsel.


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


VENEZUELA: Shopkeepers Alarmed by Maduro's Latest Economic Moves
----------------------------------------------------------------
Mircely Guanipa at Anggy Polanco Reuters report that after
Venezuelan President Nicolas Maduro's 60-fold increase to the
minimum wage, storeowners wrestled with an anguishing decision:
Close up shop or hit customers with steep price hikes at the risk
of sinking the business.

The report notes that the measures especially spooked shopkeepers
already struggling to stay afloat due to hyperinflation,
government-set prices for goods ranging from flour to diapers, and
strict currency controls that crimp imports.  Many stores were
closed as owners hunkered down to consider the implications, the
report relays.

Economists warned that some companies would go under, unable to
shoulder the massive increase in monthly minimum wage from 3
million bolivars to 180 million bolivars, or roughly $0.5 to $30,
the report says.  That will likely increase unemployment and
further fuel mass emigration that has overwhelmed neighboring
South American countries, the report discloses.

The report relays that to soften the blow, Mr. Maduro vowed that
the government would cover three months of the wage increase for
small and medium-sized companies.  But he did not provide details
and it remains unclear how his cash-starved government would
afford such a hefty payout or whether the chaotic administration
has the logistical capacity to pay wages on time, the report
relays.

The Information Ministry did not respond to a request for an
explanation of the plan, the report discloses.  Venezuela's
opposition called for protests and a national strike, although
recent attempts by the fractured coalition to rally Venezuelans
have had little impact, the report says.

Venezuela's main business chamber, Fedecamaras, said it did not
have any estimates on the effects of the measure yet, although
local economists predicted a heavy toll, notes the report.

"A minimum wage of 180 million bolivars in this current situation
implies the closure of thousands of companies and the unemployment
of many people," said economist Luis Oliveros, the report relays.

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'.


=================
X X X X X X X X X
=================


LATAM: Lawmakers Urged to Confront Public Health Issues
-------------------------------------------------------
Alianza News reports that a representative of the World Health
Organization issued a "call to action" here to all legislatures
across Latin America to address public health challenges.

"You could create a set of laws . . . that work in harmony with
your constitutions to allow the establishment of specific
guidelines with an integrated approach for the new health
challenges we are facing," Giovanni Escalante said at the start of
the 4th Congress of Legislative Health Committees of the Americas
in Montevideo, according to Alianza News.

The report relays that Mr. Escalante identified non-communicable
diseases as the biggest challenge, calling them "a threat to the
development of the member states and the people."

Because those diseases are tied to lifestyle, they require an
"intersectoral" approach, he said, notes the report.

"The image of a teenager now is someone sitting in front of a very
big television playing (videogames), eating junk food and not
exercising.  That image has to disappear completely because we
know that otherwise they won't have an appropriate labor or social
development, nor contribute 100 percent to democracy," he said,
the report relays.

Mr. Escalante said that lawmakers should ask themselves how they
can enlist and society as a whole in the effort to improve health,
the report adds.


                            ***********


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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